Common use of Non-Competition/Solicitation Clause in Contracts

Non-Competition/Solicitation. (a) The Executive acknowledges and recognizes that the highly competitive nature of the Company's business and that the goodwill and patronage of the Company's customers and network of attorneys constitute a substantial asset of the Company, having been acquired through considerable time, effort and money. Accordingly, the Executive agrees that during his employment with the Company and for a period to run concurrent with the Payout Period (as previously referred to) after Executive leaves the Company's employ for any reason, he shall not, without the written consent of the Company, directly or indirectly, either individually or as an employee, agent, partner, shareholder, consultant, option holder, lender of money, guarantor or in any other capacity other than passive investor, participate in, engage in or have an active financial interest or management position in any business, firm, company or other entity if it competes with any material business operation conducted by the Company or its subsidiaries or affiliates or any successor or assign thereof, nor will he solicit any other person to engage in any of the foregoing activities, in each case within the United States of America, its possessions and territories. The Executive acknowledges that the Company's business includes a nationwide network of attorneys and a national customer base, and therefore agrees that such the scope of this restriction is appropriate and necessary to protect the Company's legitimate business interests. Participation in the management of any business operation other than in connection with the management of a business operation which is in direct competition with the Company or its subsidiaries or affiliates or any successor or assign thereof shall not be deemed to be a breach of this Section 10(a). The foregoing provisions of this Section 10(a) shall not prohibit the ownership by the Executive (as the result of open market purchase) of 1% or less of any class of capital stock of a Company which is regularly traded on a national securities exchange or over-the-counter on the NASDAQ System.

Appears in 2 contracts

Samples: Employment Agreement (Legal Club of America Corp), Employment Agreement (Legal Club of America Corp)

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Non-Competition/Solicitation. (a) The Executive acknowledges and recognizes that the highly competitive nature of the Company's business and that the goodwill and patronage of the Company's customers and network of attorneys constitute a substantial asset of the Company, having been acquired through considerable time, effort and money. Accordingly, the Executive agrees that during his her employment with the Company and for a period to run concurrent with the Payout Period (as previously referred to) after Executive leaves the Company's employ for any reason, he she shall not, without the written consent of the Company, directly or indirectly, either individually or as an employee, agent, partner, shareholder, consultant, option holder, lender of money, guarantor or in any other capacity other than passive investor, participate in, engage in or have an active financial interest or management position in any business, firm, company or other entity if it competes with any material business operation conducted by the Company or its subsidiaries or affiliates or any successor or assign thereof, nor will he she solicit any other person to engage in any of the foregoing activities, in each case within the United States of America, its possessions and territories. The Executive acknowledges that the Company's business includes a nationwide network of attorneys and a national customer base, and therefore agrees that such the scope of this restriction is appropriate and necessary to protect the Company's legitimate business interests. Participation in the management of any business operation other than in connection with the management of a business operation which is in direct competition with the Company or its subsidiaries or affiliates or any successor or assign thereof shall not be deemed to be a breach of this Section 10(a). The foregoing provisions of this Section 10(a) shall not prohibit the ownership by the Executive (as the result of open market purchase) of 1% or less of any class of capital stock of a Company which is regularly traded on a national securities exchange or over-the-counter on the NASDAQ System.

Appears in 1 contract

Samples: Employment Agreement (Legal Club of America Corp)

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Non-Competition/Solicitation. (a) The Executive acknowledges and recognizes that the highly competitive nature of the Company's business and that the goodwill and patronage of the Company's customers and network of attorneys constitute a substantial asset of the Company, having been acquired through considerable time, effort and money. Accordingly, the Executive agrees that during his employment with the Company and for a period to run concurrent with the Payout Period (as previously referred to) of 12 months after Executive leaves the Company's employ for any reason, he shall not, without the written consent of the Company, directly or indirectly, either individually or as an employee, agent, partner, shareholder, consultant, option holder, lender of money, guarantor or in any other capacity other than passive investorinvestor of less than 5% of the equity, participate in, engage in or have an active financial interest or management position in any business, firm, company or other entity if it competes with any material business operation conducted by the Company or its subsidiaries or affiliates or any successor or assign thereof, nor will he solicit any other person to engage in any of the foregoing activities, in each case within the United States of America, its possessions and territories. The Executive acknowledges that the Company's business includes a nationwide network of attorneys and a national customer base, and therefore agrees that such the scope of this restriction is appropriate and necessary to protect the Company's legitimate business interests. Participation in the management of any business operation other than in connection with the management of a business operation which is in direct competition with the Company or its subsidiaries or affiliates or any successor or assign thereof shall not be deemed to be a breach of this Section 10(a). The foregoing provisions of this Section 10(a) shall not prohibit the ownership by the Executive (as the result of open market purchase) of 12% or less of any class of capital stock of a Company company which is regularly traded on a national securities exchange or over-the-counter on the NASDAQ System.

Appears in 1 contract

Samples: Employment Agreement (Legal Club of America Corp)

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