Common use of Disclosure of Conflicts of Interest Clause in Contracts

Disclosure of Conflicts of Interest. Employee agrees to promptly and fully disclose, and unless the Board of Directors of Employer consents, to refrain from engaging in, any activity which creates a conflict between Employee’s personal interests and the interests of Employer. Employee agrees and acknowledges that such conflicts may arise in the following illustrative situations as well as others: (I) ownership by Employee or by a relative of Employee of a substantial financial interest in any outside concern which does business with, or is a Competitor of Employer (except where such interest consists of an insubstantial percentage of a publicly owned corporation); (II) rendition of services to any outside concern, including Employee’s own or that of a close relative, which does business with, or is a Competitor of, Employer; (III) acceptance by Employee or a close relative of Employee of a gift (of more than token value), a loan (other than from an established financial institution), excessive entertainment, or other substantial favors from any outside concern which does business with, or is seeking to do business with, or is a Competitor of, Employer; (IV) representation of Employer in any transaction in which Employee has, or a close relative of Employee has, a substantial interest; (V) competition with Employer, directly or indirectly, in the purchase or sale of property or property rights or interest; and (VI) transaction of personal business with third persons in such a manner or under such circumstances as may cause the third person to believe he or she is dealing with Employer rather than Employee individually, such as by transacting personal business on stationery with Employer’s letterhead.