Noncompetition Compensation Clause Samples
The Noncompetition Compensation clause defines the payment or benefits provided to an individual, typically an employee or contractor, in exchange for their agreement not to engage in competing activities for a specified period after leaving a company. This compensation may take the form of a lump sum, ongoing payments, or other financial incentives, and is usually contingent upon the individual's compliance with the noncompetition terms. The core function of this clause is to provide fair consideration for the restriction on future employment opportunities, thereby making the noncompetition agreement enforceable and protecting the company's business interests.
Noncompetition Compensation. In the event that CEO’s employment is terminated (including by expiration of this Agreement), other than by death or permanent disability under Section 4(a) [Permanent Disability] or death under Section 4(b) [Death] or for cause under Sections 4(c)(4) [Felony or Serious Crime] or 4(c)(5) [Fraud, Embezzlement], and CEO is not employed by USPB, then USPB shall provide noncompetition compensation for: (1) each of the twelve (12) months first following the termination of employment of CEO with USPB (“USPB Noncompetition Payments”), provided USPB may terminate the USPB Noncompetition Payments prior to the end of the twelve month period if the Board of Directors determines the CEO violated the noncompetition restriction in Section 6(a) or any of the remaining obligations under Section 6. The period in which noncompetition compensation is provided, from start to expiration or earlier termination for the USPB Noncompetition Payments, is the “Noncompetition Period.” Noncompetition compensation shall be paid during the Noncompetition Period as follows:
Noncompetition Compensation. In the event that CEO’s employment is terminated (including by expiration of this Agreement), other than by death or permanent disability under Section 4(a) or Section 4(b) or for cause under Sections 4(c)(4) or 4(c)(5), and CEO is not employed by USPB or one of the USPB Entities (defined in Section 7(a)) (the “USPB Non-Employment”); or CEO’s employment is terminated, including by expiration of this Agreement, and other than by death or permanent disability under Section 4(a) or 4(b) and CEO is not employed by USPB, National Beef Packing Company, LLC, or a subsidiary of either USPB or National Beef Packing Company, LLC (the “National Non-Employment”), then USPB shall provide noncompetition compensation for: (1) each of the eighteen (18) months first following the termination of employment of CEO with USPB (“USPB Noncompetition Payments”), provided USPB may terminate the USPB Noncompetition Payments prior to the end of the eighteen month period if the Board of Directors determines the CEO violated the noncompetition restriction in Section 6(a) or any of the remaining obligations under Section 6; and (2) USPB shall pay noncompetition compensation for each of the months for the period of National Non-Employment starting after USPB Non-Employment until ten years after the LUK Closing Date (“National Noncompetition Payments”), provided that USPB may terminate the National Noncompetition Payments if, National determines and USPB approves, that CEO has violated CEO’s noncompetition agreement with National Beef Packing Company, LLC (attached as Exhibit B to this Agreement). The period in which noncompetition compensation is provided, from start to expiration or earlier termination for both of the USPB Noncompetition Payments and National Noncompetition Payments, is the “Noncompetition Period.” Noncompetition compensation shall be paid during the Noncompetition Period as follows:
Noncompetition Compensation. As compensation for the agreements referred to in Section 13, commencing at the beginning of the Post-term Period, Executive will receive cash payments from the bank for a period of 12 successive months equal to the highest monthly base salary paid in any of the 12 months prior to termination.
Noncompetition Compensation. In the event that CEO’s employment is terminated (including by expiration of this Agreement), other than by death or permanent disability under Section 4(a) or Section 4(b) or for cause under Sections 4(c)(4) or 4(c)(5), and CEO is not employed by USPB or one of the USPB Entities (defined in Section 7(a)); then USPB shall provide noncompetition compensation for each of the eighteen (18) months first following the termination of employment of CEO with USPB, provided USPB may terminate noncompetition compensation prior to the end of the eighteen month period if the Board of Directors determines the CEO violated the noncompetition restriction in Section 6(a) or any of the remaining obligations under Section 6. The period in which noncompetition compensation is provided, from start to expiration or earlier termination, is the “Noncompetition Period.” Noncompetition compensation shall be paid during the Noncompetition Period as follows: