Common use of MUTUAL NON-SOLICITATION/RECRUITING FEE AGREEMENT Clause in Contracts

MUTUAL NON-SOLICITATION/RECRUITING FEE AGREEMENT. During the term of this Agreement, Siebel agrees not to entice, solicit, recruit, hire or engage any employee, consultant, or independent contractor of Distributor to leave the employ of Distributor or terminate its relationship with Distributor for any purpose whatsoever, whether for Siebel's benefit or the benefit of a third party. During the term of this Agreement, Distributor agrees not to entice, solicit, recruit, any employee, consultant, or independent contractor of Siebel for any leave the employ of Siebel or terminate its relationship with Siebel for any purpose whatsoever, whether for Distributor's benefit or the benefit of a third party. For each person who was employed by either party on or before August 10, 1999, and is hired by the other party as an employee at any time during the term of this Agreement, the party hiring such employee will pay to the other party a recruiting fee as follows: (i) [*] for anyone who was employed by or under contract as a representative in the sales, engineering, product marketing, or marketing departments or as a manager, director, vice president, or any similar or higher-ranking employee, or (ii) [*] for any other employee. The payment shall be due and owing on the first day of work for the party hiring such employee. Payments that have not been made by the 16th day of the individual's work shall be delinquent and subject to 15% interest per annum. The parties agree and acknowledge that the purpose of this mutual non-solicitation and recruiting fee agreement is to protect and safeguard each party's Confidential Information. [*] Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.