Exceptions to Noncompetition. The restrictions contained in Section 5.1(A) will 1. Not prevent Employee from the following: a. Owning up to three percent (3%) of a publicly held company that competes with the Corporation and/or its subsidiaries, so long as Employee does not otherwise violate the terms of this Article 5; or b. Accepting employment with a large diversified organization with separate and distinct divisions that do not compete, directly or indirectly, with the Corporation on the following conditions: Prior to accepting such employment, Employee provides the Corporation written assurance that he will not provide any of the Corporation’s trade secrets or other Confidential Information to the new employer, will not render any services, directly or indirectly, to any division or business unit that competes, directly or indirectly, with the Corporation, and that he will not violate any of the terms of Article 5 of this Agreement; or 2. Have no force or effect if the circumstances of Employee’s termination of employment trigger the Corporation’s obligation to pay severance pursuant to Section 4.4 or Change of Control Termination amounts pursuant to Article 6 herein and the Corporation is unable to pay the amount due to Employee as a result of the Corporation’s liquidation or insolvency.
Appears in 4 contracts
Samples: Employment Agreement (Winland Electronics Inc), Employment Agreement (Winland Electronics Inc), Employment Agreement (Winland Electronics Inc)
Exceptions to Noncompetition. The restrictions contained in Section 5.1(A) will
1. Not prevent Employee from the following:
a. Owning up to three percent (3%) of a publicly held company that competes with the Corporation and/or its subsidiaries, so long as Employee does not otherwise violate the terms of this Article 5; or
b. Accepting employment with a large diversified organization with in a separate and distinct divisions division that do does not compete, directly or indirectly, with the Corporation on the following conditions: Prior to accepting such employment, Employee provides the Corporation written assurance that he will not provide any of the Corporation’s trade secrets or other Confidential Information to the new employer, will not render any services, directly or indirectly, to any division or business unit that competes, directly or indirectly, with the Corporation, and that he will not violate any of the terms of Article 5 of this Agreement; or
2. Have no force or effect if the circumstances of Employee’s termination of employment trigger the Corporation’s obligation to pay severance pursuant to Section 4.4 or Change of Control Termination amounts pursuant to Article 6 herein and the Corporation is unable to pay the amount due to Employee as a result of the Corporation’s liquidation or insolvency.
Appears in 2 contracts
Samples: Employment Agreement (Winland Electronics Inc), Employment Agreement (Winland Electronics Inc)