Common use of Limitation on Covenant Clause in Contracts

Limitation on Covenant. The covenant set forth in Section 4.06 above shall not be applicable in any of the following circumstances: (1) If Employee terminates this Agreement because the Company is in material violation of its obligations under this Agreement; or (2) If any event should occur that gives rise to the incurrence by the Company of a severance obligation to Employee under Article VI of this Agreement.