{"component": "clause", "props": {"groups": [{"snippet": "As a condition to Executive's obligations hereunder, the Company shall deliver to Executive on the date hereof $50,000 (the \"Noncompete Payment\") in immediately available funds.", "samples": [{"hash": "kLPPn4gKDGi", "uri": "/contracts/kLPPn4gKDGi#noncompete-payment", "label": "Noncompetition Agreement (MST Enterprises Inc)", "score": 16.0, "published": true}, {"hash": "fn7l8Bwtyk9", "uri": "/contracts/fn7l8Bwtyk9#noncompete-payment", "label": "Noncompetition Agreement (MST Enterprises Inc)", "score": 16.0, "published": true}, {"hash": "4JlMYKY2hbL", "uri": "/contracts/4JlMYKY2hbL#noncompete-payment", "label": "Noncompetition Agreement (MST Enterprises Inc)", "score": 16.0, "published": true}], "size": 9, "snippet_links": [{"key": "to-executive", "type": "clause", "offset": [15, 27]}, {"key": "the-company-shall", "type": "clause", "offset": [53, 70]}, {"key": "deliver-to", "type": "definition", "offset": [71, 81]}, {"key": "date-hereof", "type": "clause", "offset": [99, 110]}, {"key": "immediately-available-funds", "type": "clause", "offset": [149, 176]}], "hash": "15a5a7e1b23a9e17cd8818a70eb12f37", "id": 1}, {"snippet": "Notwithstanding any other provision of this Agreement, the Parties agree that in consideration of and as an inducement to Executive's undertaking the obligations contained in this Section 9, the Corporation shall pay Executive (or in the event of his death, his estate), within 5 business days after the date of termination of employment, a lump sum payment equal to one-half Executive's annual base salary, as in effect on the date of termination of employment (the \"Noncompete Payment\"). The parties further acknowledge and agree that should Executive breach any of the covenants contained in this Section 9, the Corporation will suffer material damages, including but not limited to lost business revenues, sales, and customers. Because of the difficulty in quantifying these damages, Executive hereby agrees that, in addition to any other rights the Corporation may have at law or in equity, he shall forfeit the Noncompete Payment upon any breach of the covenants contained in this Section 9. 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Notwithstanding anything in this Agreement to the contrary, Employee's termination shall not alter or impair any of Employee's rights or benefits, if any, under any (i) employee benefit plan of the Company or (ii) incentive or deferred compensation plan, including, without limitation, any stock option plan, of the Company.", "samples": [{"hash": "2I01EYdbA1i", "uri": "/contracts/2I01EYdbA1i#noncompete-payment", "label": "Noncompetition Agreement (Tech Sym Corp)", "score": 16.0, "published": true}], "size": 4, "snippet_links": [{"key": "qualified-termination", "type": "definition", "offset": [7, 28]}, {"key": "company-in", "type": "clause", "offset": [69, 79]}, {"key": "lump-sum", "type": "definition", "offset": [82, 90]}, {"key": "in-cash", "type": "definition", "offset": [91, 98]}, {"key": "five-days", "type": "definition", "offset": [106, 115]}, {"key": "following-the", "type": "definition", "offset": [116, 129]}, {"key": "date-of", "type": "clause", "offset": [130, 137]}, {"key": "agreement-to", "type": "definition", "offset": [199, 211]}, {"key": "termination-shall", "type": "clause", "offset": [237, 254]}, {"key": "of-employee", "type": "clause", "offset": [279, 290]}, {"key": "rights-or-benefits", "type": "clause", "offset": [293, 311]}, {"key": "of-the-company", "type": "clause", "offset": [357, 371]}, {"key": "deferred-compensation-plan", "type": "clause", "offset": [393, 419]}, {"key": "without-limitation", "type": "clause", "offset": [432, 450]}, {"key": "stock-option-plan", "type": "clause", "offset": [456, 473]}], "hash": "4bbeac192cfcb41e00edaf33e2e7644d", "id": 3}, {"snippet": "Notwithstanding any other provision of this ------------------ Agreement, the Parties agree that in consideration of and as an inducement to Executive's undertaking the obligations contained in this Section 9, the Corporation shall pay Executive (or in the event of his death, his estate), within 5 business days after the date of termination of employment, a lump sum payment equal to (i) two times Executive's base salary at the rate in effect on the date of the termination of employment (or, in the event of a termination for Good Reason, the base salary as in effect immediately before the actions giving rise to Good Reason); plus (ii) two times the greatest of the incentive payments under the Annual Incentive Plan either paid or accrued in either the Year of the termination of employment or the immediately preceding Year (the \"Noncompete Payment\"). The parties further acknowledge and agree that should Executive breach any of the covenants contained in this Section 9, the Corporation will suffer material damages, including but not limited to lost business revenues, sales, and customers. Because of the difficulty in quantifying these damages, Executive hereby agrees that, in addition to any other rights the Corporation may have at law or in equity, he shall forfeit the Noncompete Payment upon any breach of the covenants contained in this Section 9. In the event a breach of covenant occurs after the termination of employment, Employee agrees to immediately return the Noncompete Payment to the Corporation.", "samples": [{"hash": "frN5yjWjNO5", "uri": "/contracts/frN5yjWjNO5#noncompete-payment", "label": "Employment Agreement (Sind Acquisition Inc)", "score": 18.0, "published": true}, {"hash": "1zFDpXTNtWN", "uri": "/contracts/1zFDpXTNtWN#noncompete-payment", "label": "Employment Agreement (Sind Acquisition Inc)", "score": 18.0, "published": true}], "size": 3, "snippet_links": [{"key": "provision-of", "type": "clause", "offset": [26, 38]}, {"key": "the-parties-agree-that", "type": "clause", "offset": [74, 96]}, {"key": "in-consideration-of", "type": "clause", "offset": [97, 116]}, {"key": "to-executive", "type": "clause", "offset": [138, 150]}, {"key": "the-obligations", "type": "clause", "offset": [165, 180]}, {"key": "contained-in", "type": "definition", "offset": [181, 193]}, {"key": "section-9", "type": "clause", "offset": [199, 208]}, {"key": "days-after", "type": "definition", "offset": [308, 318]}, {"key": "date-of-termination-of-employment", "type": "definition", "offset": [323, 356]}, {"key": "lump-sum-payment", "type": "clause", "offset": [360, 376]}, {"key": "equal-to", "type": "definition", "offset": [377, 385]}, {"key": "two-times", "type": "clause", "offset": [390, 399]}, {"key": "the-rate", "type": "definition", "offset": [427, 435]}, {"key": "effect-on-the", "type": "clause", "offset": [439, 452]}, {"key": "the-termination", "type": "clause", "offset": [461, 476]}, {"key": "termination-for-good-reason", "type": "definition", "offset": [514, 541]}, {"key": "the-base-salary", "type": "definition", "offset": [543, 558]}, {"key": "the-actions", "type": "clause", "offset": [591, 602]}, {"key": "incentive-payments", "type": "definition", "offset": [672, 690]}, {"key": "annual-incentive-plan", "type": "definition", "offset": [701, 722]}, {"key": "the-year", "type": "definition", "offset": [756, 764]}, {"key": "preceding-year", "type": "definition", "offset": [817, 831]}, {"key": "acknowledge-and-agree", "type": "clause", "offset": [880, 901]}, {"key": "executive-breach", "type": "clause", "offset": [914, 930]}, {"key": "the-covenants", "type": "clause", "offset": [938, 951]}, {"key": "material-damages", "type": "definition", "offset": [1009, 1025]}, {"key": "not-limited", "type": "clause", "offset": [1041, 1052]}, {"key": "business-revenues", "type": "definition", "offset": [1061, 1078]}, {"key": "in-addition-to", "type": "clause", "offset": [1188, 1202]}, {"key": "other-rights", "type": "definition", "offset": [1207, 1219]}, {"key": "payment-upon", "type": "clause", "offset": [1298, 1310]}, {"key": "breach-of-covenant", "type": "clause", "offset": [1383, 1401]}, {"key": "agrees-to", "type": "clause", "offset": [1455, 1464]}, {"key": "to-the-corporation", "type": "clause", "offset": [1507, 1525]}], "hash": "5bc4f8b3e95c13cfddbc6f10357fcd18", "id": 4}, {"snippet": "(a) In consideration of the matters set forth in Section 3, the Company shall pay Executive $200,000 per year (the \"Noncompete Payment\"), less deductions authorized by law, payable on the same periodic basis with respect to payment of executive salaries, commencing upon the date of this Agreement and continuing for four years from the date of this Agreement. Notwithstanding the foregoing, if Executive, at any time during the term of this Agreement, fails to comply with any of the covenants set forth in Section 3 hereinafter, the Company shall be relieved of its obligation to make Noncompete Payments.", "samples": [{"hash": "aeEkMdLi8lZ", "uri": "/contracts/aeEkMdLi8lZ#noncompete-payment", "label": "Noncompetition Agreement (Microdyne Corp)", "score": 16.0, "published": true}], "size": 1, "snippet_links": [{"key": "in-consideration-of-the", "type": "clause", "offset": [4, 27]}, {"key": "in-section-3", "type": "clause", "offset": [46, 58]}, {"key": "the-company-shall", "type": "clause", "offset": [60, 77]}, {"key": "per-year", "type": "definition", "offset": [101, 109]}, {"key": "authorized-by", "type": "definition", "offset": [154, 167]}, {"key": "periodic-basis", "type": "definition", "offset": [193, 207]}, {"key": "with-respect-to", "type": "clause", "offset": [208, 223]}, {"key": "payment-of", "type": "definition", "offset": [224, 234]}, {"key": "date-of-this-agreement", "type": "definition", "offset": [275, 297]}, {"key": "notwithstanding-the-foregoing", "type": "clause", "offset": [361, 390]}, {"key": "at-any-time", "type": "clause", "offset": [406, 417]}, {"key": "during-the-term-of-this-agreement", "type": "clause", "offset": [418, 451]}, {"key": "comply-with", "type": "clause", "offset": [462, 473]}, {"key": "the-covenants", "type": "clause", "offset": [481, 494]}, {"key": "obligation-to", "type": "clause", "offset": [568, 581]}, {"key": "noncompete-payments", "type": "clause", "offset": [587, 606]}], "hash": "0ccd85e92ed955621fca7a0c2773017b", "id": 5}, {"snippet": "In addition, you are entitled to a payment of US$ 916,140 in exchange for the non-compete obligations described in Section 13 of the Severance Agreement. The non-compete period described in the Severance Agreement starts on August 1, 2008 and extends for two years.", "samples": [{"hash": "hAFJTYUhfnS", "uri": "/contracts/hAFJTYUhfnS#noncompete-payment", "label": "Severance Compensation Agreement (AbitibiBowater Inc.)", "score": 19.0, "published": true}], "size": 1, "snippet_links": [{"key": "in-addition", "type": "clause", "offset": [0, 11]}, {"key": "payment-of", "type": "definition", "offset": [35, 45]}, {"key": "in-exchange", "type": "clause", "offset": [58, 69]}, {"key": "the-non", "type": "clause", "offset": [74, 81]}, {"key": "section-13", "type": "definition", "offset": [115, 125]}, {"key": "severance-agreement", "type": "clause", "offset": [133, 152]}, {"key": "compete-period", "type": "definition", "offset": [162, 176]}, {"key": "two-years", "type": "clause", "offset": [255, 264]}], "hash": "a0526bc12869902029bccdbfc1ac3981", "id": 6}, {"snippet": "In consideration for the promises and representations and warranties of Seller set forth herein, on the Closing Date, the Buyer will pay aggregate cash consideration of Three Hundred Thousand Dollars ($300,000) to the Seller in the manner set forth in Section 2.4", "samples": [{"hash": "7owOMXfQ4qt", "uri": "/contracts/7owOMXfQ4qt#noncompete-payment", "label": "Noncompetition Agreement (TC Global, Inc.)", "score": 19.0, "published": true}], "size": 1, "snippet_links": [{"key": "in-consideration-for", "type": "clause", "offset": [0, 20]}, {"key": "representations-and-warranties-of-seller", "type": "clause", "offset": [38, 78]}, {"key": "the-closing-date", "type": "clause", "offset": [100, 116]}, {"key": "buyer-will-pay", "type": "clause", "offset": [122, 136]}, {"key": "aggregate-cash-consideration", "type": "definition", "offset": [137, 165]}, {"key": "to-the-seller", "type": "definition", "offset": [211, 224]}, {"key": "section-24", "type": "clause", "offset": [252, 263]}], "hash": "7ee31701a29034cc409aeb484be821b5", "id": 7}, {"snippet": "In consideration of the benefits to be derived by the Executive under this Consulting Agreement, and for the additional consideration of cash in the amount of $250,000 to be paid on or before December 15, 2003, the Executive hereby agrees that he shall not directly or indirectly, whether for his own account or for the account of any other person, firm, corporation, or other business organization, compete with the Corporation by:\n(1) providing Banking Services (as defined below) on behalf of any other business organization in the capacity of director, manager, partner, or executive officer with policy making authority, including but not limited to principal executive officer, principal financial or accounting officer, principal operating or administrative officer, or other executive officer capacity, or\n(2) providing Banking Services to any Client (as defined below), or\n(3) making any statement or taking any actions that, in the sole judgement of the Corporation, interfere with the Corporation\u2019s business relationships with any Client, including but not limited to any statements that are harmful to the reputation of the Corporation or the Corporation\u2019s standing in the communities it serves, or\n(4) except on behalf of the Corporation as may be requested by the Corporation, making contact either directly or indirectly with any Client or inducing or encouraging any Client to enter into any business relationship with any person, firm, corporation, or other business organization other than the Corporation relating to Banking Services or banking business of any type, or\n(5) enticing or encouraging any person employed by or associated with the Corporation as an employee, officer, director, manager, salesperson, consultant, independent contractor, representative, or other agent to serve as an employee, officer, director, manager, salesperson, consultant, independent contractor, representative, or other agent of any person, firm, corporation, or other business organization other than the Corporation, or\n(6) taking any actions that may interfere with the Corporation\u2019s property rights in lists of clients or otherwise diminish the value of such lists to the Corporation. For purposes of section 5 as a whole, including this section 5.1, the term \u201cCorporation\u201d includes not only Unizan Financial Corp. but also any subsidiary identified in Unizan Financial Corp.\u2019s Form 10-K Annual Report, Part I, Item 1 (Business), and any other company whose accounts are consolidated with those of Unizan Financial Corp. according to the principles of consolidation stated in the notes to Unizan Financial Corp.\u2019s audited, consolidated financial statements included in Unizan Financial Corp.\u2019s Form 10-K Annual Report for the year ended December 31, 2002 or to be included in Unizan Financial Corp.\u2019s Form 10-K Annual Report for the year ended December 31, 2003. The noncompetition covenant contained in this section 5.1(a) shall expire at the end of the term of this Consulting Agreement.", "samples": [{"hash": "9KZj3ejhcvq", "uri": "/contracts/9KZj3ejhcvq#noncompete-payment", "label": "Consulting and Noncompetition Agreement (Unizan Financial Corp)", "score": 19.0, "published": true}], "size": 1, "snippet_links": [{"key": "the-benefits", "type": "clause", "offset": [20, 32]}, {"key": "by-the-executive", "type": "clause", "offset": [47, 63]}, {"key": "consulting-agreement", "type": "definition", "offset": [75, 95]}, {"key": "additional-consideration", "type": "definition", "offset": [109, 133]}, {"key": "before-december", "type": "clause", "offset": [185, 200]}, {"key": "directly-or-indirectly", "type": "clause", "offset": [257, 279]}, {"key": "own-account", "type": "clause", "offset": [297, 308]}, {"key": "the-account", "type": "clause", "offset": [316, 327]}, {"key": "any-other-person", "type": "definition", "offset": [331, 347]}, {"key": "business-organization", "type": "definition", "offset": [377, 398]}, {"key": "corporation-by", "type": "definition", "offset": [417, 431]}, {"key": "banking-services", "type": "definition", "offset": [447, 463]}, {"key": "on-behalf-of", "type": "clause", "offset": [483, 495]}, {"key": "any-other-business", "type": "clause", "offset": [496, 514]}, {"key": "policy-making", "type": "clause", "offset": [601, 614]}, {"key": "not-limited", "type": "clause", "offset": [640, 651]}, {"key": "principal-executive-officer", "type": "definition", "offset": [655, 682]}, {"key": "accounting-officer", "type": "clause", "offset": [707, 725]}, {"key": "administrative-officer", "type": "clause", "offset": [750, 772]}, {"key": "other-executive", "type": "definition", "offset": [777, 792]}, {"key": "of-the-corporation", "type": "clause", "offset": [957, 975]}, {"key": "business-relationships", "type": "clause", "offset": [1010, 1032]}, {"key": "by-the-corporation", "type": "clause", "offset": [1271, 1289]}, {"key": "making-contact", "type": "clause", "offset": [1291, 1305]}, {"key": "to-enter", "type": "definition", "offset": [1390, 1398]}, {"key": "any-business", "type": "definition", "offset": [1404, 1416]}, {"key": "any-person", "type": "definition", "offset": [1435, 1445]}, {"key": "relating-to", "type": "definition", "offset": [1524, 1535]}, {"key": "banking-business", "type": "clause", "offset": [1556, 1572]}, {"key": "employed-by", "type": "definition", "offset": [1628, 1639]}, {"key": "associated-with", "type": "definition", "offset": [1643, 1658]}, {"key": "as-an-employee", "type": "clause", "offset": [1675, 1689]}, {"key": "independent-contractor", "type": "clause", "offset": [1744, 1766]}, {"key": "other-agent", "type": "definition", "offset": [1787, 1798]}, {"key": "to-serve", "type": "definition", "offset": [1799, 1807]}, {"key": "property-rights", "type": "definition", "offset": [2093, 2108]}, {"key": "of-clients", "type": "clause", "offset": [2118, 2128]}, {"key": "the-value", "type": "clause", "offset": [2151, 2160]}, {"key": "to-the-corporation", "type": "clause", "offset": [2175, 2193]}, {"key": "for-purposes-of-section", "type": "clause", "offset": [2195, 2218]}, {"key": "section-51", "type": "clause", "offset": [2248, 2259]}, {"key": "financial-corp", "type": "clause", "offset": [2309, 2323]}, {"key": "form-10", "type": "definition", "offset": [2388, 2395]}, {"key": "annual-report", "type": "clause", "offset": [2398, 2411]}, {"key": "item-1", "type": "definition", "offset": [2421, 2427]}, {"key": "other-company", "type": "definition", "offset": [2448, 2461]}, {"key": "according-to", "type": "definition", "offset": [2531, 2543]}, {"key": "principles-of-consolidation", "type": "clause", "offset": [2548, 2575]}, {"key": "the-notes", "type": "clause", "offset": [2586, 2595]}, {"key": "consolidated-financial-statements", "type": "definition", "offset": [2633, 2666]}, {"key": "the-year", "type": "definition", "offset": [2732, 2740]}, {"key": "noncompetition-covenant", "type": "definition", "offset": [2877, 2900]}, {"key": "contained-in", "type": "definition", "offset": [2901, 2913]}, {"key": "term-of-this", "type": "clause", "offset": [2965, 2977]}], "hash": "fea076993757c9adb03cc506eb6d9a13", "id": 8}, {"snippet": "As compensation for Employee's agreement not to compete contained in Section 15 hereof, the Corporation shall pay to the Employee the total amount of $927,000 (the \"Noncompete Payment\") as follows:\n(01) $309,000 on the effective date of this Agreement;\n(02) $309,000 on the date that is one year from the effective date of this Agreement; and\n(03) $309,000 on the date that is two years from the effective date of this Agreement. The Noncompete Payment shall be made to the Employee without regard to whether this Agreement is terminated in accordance with Section 13 hereunder, or otherwise.", "samples": [{"hash": "hSSm4trEDeu", "uri": "/contracts/hSSm4trEDeu#noncompete-payment", "label": "Employment Agreement (Ultra Pac Inc)", "score": 18.0, "published": true}], "size": 1, "snippet_links": [{"key": "for-employee", "type": "clause", "offset": [16, 28]}, {"key": "agreement-not-to-compete", "type": "definition", "offset": [31, 55]}, {"key": "contained-in", "type": "definition", "offset": [56, 68]}, {"key": "section-15", "type": "definition", "offset": [69, 79]}, {"key": "the-corporation", "type": "clause", "offset": [88, 103]}, {"key": "to-the-employee", "type": "definition", "offset": [114, 129]}, {"key": "total-amount", "type": "definition", "offset": [134, 146]}, {"key": "effective-date-of-this-agreement", "type": "definition", "offset": [219, 251]}, {"key": "one-year", "type": "clause", "offset": [287, 295]}, {"key": "from-the-effective-date", "type": "clause", "offset": [296, 319]}, {"key": "two-years", "type": "clause", "offset": [377, 386]}, {"key": "in-accordance-with", "type": "definition", "offset": [538, 556]}, {"key": "section-13", "type": "definition", "offset": [557, 567]}], "hash": "bdf86bf165b2c6711bf6e9e9a30d6302", "id": 9}, {"snippet": "(a) As full payment for the noncompetition agreements contained in Section 1.2, the Purchasers shall pay to the Shareholders the sum of U.S.$8,000,000 (the \"Noncompete Payment\"), subject to adjustment as provided below and without interest, in the installments and on the dates (a \"Payment Date\") set forth below: Payment Amount Date ------ ---- U.S. $ 833,333.34 03/31/00 U.S. $3,000,000.00 08/31/00 U.S. $1,666,666.66 03/31/01 U.S. $1,666,666.66 03/31/02 U.S. $ 833,333.34 09/30/02\n(b) The Noncompete Payment shall be allocated among the Shareholders as set forth on Schedule 2.1(b). ---------------\n(c) Each of the Shareholders hereby irrevocably constitutes and appoints the Paying Agent as the agent of such Shareholder to receive any portion of the Noncompete Payment payable to such Shareholder hereunder and to hold or disburse the same as directed by such Shareholder. The Purchasers shall be entitled to rely on any notice, certificate, affidavit, letter, document or other communication which they believe to be genuine and to have been signed or sent by the Paying Agent with respect to the payment of any portion of the Noncompete Payment, and may rely on statements contained therein without further inquiry or investigation.\n(d) Notwithstanding anything to the contrary contained above, the amount payable by the Purchasers pursuant to Section 2.1(a) on any Payment Date (except August 31, 2000) shall be reduced dollar for dollar in the event that the Companies shall fail to realize an aggregate adjusted pre-tax income for the period related to such Payment Date in an amount computed as follows : T1 = (P//1// x I//1//) + (S x I//2//) + (P//2// x I//1//) - T//2// where: T//1// = Target adjusted pre-tax income for the period P//1// = Number of units of pants produced in such period, but not to exceed U U = Target number of units to be produced in the period I//1// = Target adjusted pre-tax income per unit for pants produced in the period S = Number of units of shorts produced in the period I//2// = Target adjusted pre-tax income per unit for shorts produced in the period P//2// = U - P//1// - S, but not less than zero T//2// = (U divided by W) x P//3// W = Number of full weeks in the period P//3// = Average selling price of pants produced in the period The target number of units to be produced, adjusted pre-tax income per unit for pants and shorts and number of weeks in each period are set forth in the following table: Period Payment Date Production Adjusted Pre-Tax Income* ------------------ ------------ ------------------------------------------------ (Units) ------- Pants Shorts ------------------- ------------------- 07/28/99-12/31/99 03/31/2000 2.5 million U.S. $0.80 per unit U.S. $0.60 per unit 01/01/00-12/31/00 03/31/2001 5.0 million U.S. $0.90 per unit U.S. $0.70 per unit 2.5 million U.S. $0.50 per unit** U.S. $0.40 per unit** 01/01/01-12/31/01 03/31/2002 5.0 million U.S. $1.00 per unit U.S. $0.80 per unit 5.0 million U.S. $0.50 per unit** U.S. $0.40 per unit** 01/01/02-06/30/02 09/30/2002 2.5 million U.S. $1.00 per unit U.S. $0.80 per unit 2.5 million U.S. $0.50 per unit** U.S. $0.40 per unit** ____________________ * The targeted adjusted pre-tax income shall be adjusted as follows: (i) such amount shall be decreased by such allocation of the overhead of the Companies (excluding any amounts payable to key employees pursuant to the Employment Agreements referred to in Section 5.1(d) of the Stock Purchase Agreement or any amounts payable pursuant to the leases described in Section 5.1(f) of the Stock Purchase Agreement) or any of their parent, subsidiary or affiliated companies as may be reasonably attributable to the operation of the Companies from time to time. Each such adjustment shall apply retroactively commencing on the immediately preceding Payment Date. In the event that either the exchange rate of the Mexican peso to the United States dollar or the consumer price index shall increase or decrease in a material amount, the parties shall in good faith seek to amend the foregoing targets to effect the purposes thereof. ** If not washed by the laundry facilities purchased pursuant to the Stock Purchase Agreement.\n(e) Notwithstanding anything to the contrary contained herein, the Purchasers shall have the right to set-off against any amount otherwise due pursuant to Section 2.1(a) any obligation of the Shareholders to the Purchasers under this Agreement or the Stock Purchase Agreement, including, but not limited to, a claim for indemnification or contribution under Section 3.2 hereof or Section 6.2 thereof (a \"claim\"); provided, however, that the Purchasers first -------- shall have delivered to the Shareholders in writing a summary description of the factual and legal bases for such claim and an estimate of the amount thereof. In the event that a claim is based upon the demand of a person other than the Purchasers, which demand is finally determined by a decision from which no appeal may be taken, the amount of such claim shall be deemed to have been finally determined thereby and not to be subject to further arbitration.\n(f) The Purchasers shall have the right, but not the obligation, to pay any amount payable by, or to perform any obligation of, any of the Shareholders if the Purchasers, in their reasonable discretion, determines that the failure to pay such amount or to perform such obligation could have a material adverse effect on the Companies or the business of the Purchasers associated therewith; provided, however, that before the Purchasers shall pay -------- any such amount or perform any such obligation they first shall notify the respective Shareholder in writing of their intention to do so and shall give such Shareholder ten (10) days to cure or contest such failure. The Noncompete Payment shall be reduced by the cost to the Purchasers of any such amount paid or obligation performed. The Purchasers shall have the right (i) to set off any such amount or cost against any amount then payable to the Shareholders under this Agreement or the Stock Purchase Agreement or any agreement or instrument delivered pursuant hereto or thereto or (ii) to demand that the Shareholders, jointly and severally, reimburse the Purchasers therefor promptly on demand, and the Shareholders, jointly and severally, shall do so. The Purchasers' rights under this Section\n(f) shall be in addition to any other rights or remedies of the Purchasers under this Agreement, the Stock Purchase Agreement or applicable law.\n(g) In the event that any Shareholder's employment by Industrial Exportadora Famian, S.\nA. de C.V. (\"Famian\") pursuant to an Employment Agreement executed and delivered pursuant to Section 5.1(d) of the Stock Purchase Agreement is terminated by Famian without \"cause\" (as defined below), then the Purchasers shall pay to all the Shareholders the Noncompete Payment on the dates otherwise due hereunder, but determined without regard to Section 2.1(d). The term \"cause\" shall mean the failure or refusal of the Shareholder to timely and fully perform any of his duties under such Employment Agreement.", "samples": [{"hash": "iTYUfjR4HkS", "uri": "/contracts/iTYUfjR4HkS#noncompete-payment", "label": "Noncompetition Agreement (Tarrant Apparel Group)", "score": 16.0, "published": true}], "size": 1, "snippet_links": [{"key": "payment-for-the", "type": "clause", "offset": [12, 27]}, {"key": "noncompetition-agreements", "type": "clause", "offset": [28, 53]}, {"key": "contained-in", "type": "definition", "offset": [54, 66]}, {"key": "to-the-shareholders", "type": "definition", "offset": [105, 124]}, {"key": "sum-of", "type": "clause", "offset": [129, 135]}, {"key": "subject-to", "type": "definition", "offset": [179, 189]}, {"key": "payment-date", "type": "clause", "offset": [282, 294]}, {"key": "payment-amount", "type": "clause", "offset": [314, 328]}, {"key": "on-schedule", "type": "definition", "offset": [566, 577]}, {"key": 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"ClsSVWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjcLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ihtub25jb21wZXRlLXBheW1lbnQjMDAwMDAwMGEMogECZW4YACAA", "clause": {"size": 33, "title": "Noncompete Payment", "children": [["death-and-disability", "Death and Disability"], ["payment", "Payment"], ["noncompete-payment", "Noncompete Payment"], ["injunctive-relief", "Injunctive Relief"], ["liquidated-damages", "Liquidated Damages"]], "parents": [["further-obligations-of-executive", "Further Obligations of Executive"], ["purchase-price", "Purchase Price"], ["term-of-this-consulting-agreement", "TERM OF THIS CONSULTING AGREEMENT"], ["restricted-activities", "Restricted Activities"], ["noncompete-payment", "Noncompete Payment"]], "id": "noncompete-payment", "related": [["noncompete-provisions", "Noncompete Provisions", "Noncompete Provisions"], ["non-compete-provision", "Non-Compete Provision", "Non-Compete Provision"], ["noncompetition-nonsolicitation", "Noncompetition; Nonsolicitation", "Noncompetition; Nonsolicitation"], ["separation-payment", "Separation Payment", "Separation Payment"], ["employment-noncompetition-nondisclosure", "Employment; Noncompetition; Nondisclosure", "Employment; Noncompetition; Nondisclosure"]], "related_snippets": [], "updated": "2025-07-07T12:36:18+00:00", "also_ask": [], "drafting_tip": null, "explanation": "A Noncompete Payment clause establishes the obligation for one party, typically an employer, to compensate another party, such as a former employee, in exchange for their agreement not to engage in competing activities for a specified period after leaving the organization. This payment may be structured as a lump sum or periodic installments and is often contingent on the individual's compliance with the noncompete restrictions. The core function of this clause is to provide financial consideration for the noncompete agreement, thereby making the restriction enforceable and fair, while protecting the business from potential competition by former associates."}, "json": true, "cursor": ""}}