Common use of Prohibition of Competition Clause in Contracts

Prohibition of Competition. 7.1 The parties agree that XXXXX BRINGSTRUP, through its position in the Company, will disclose corporate secrets that cannot be protected by patents or similar registration procedures, and whose use in competing activities would result in significant but for the Company. The parties also agree that it is a prerequisite for the Company, in confidence, to submit such information to XXXXX BRINGSTRUP that the Company can ensure that XXXXX BRINGSTRUP does not use the knowledge and contacts obtained through the employment to build or operate in operations that compete with the Company or its affiliates. It is therefore incumbent upon XXXXX BRINGSTRUP to, during the term of the Employment Agreement and for nine (9) months from termination of employment, either himself or as owner, partner, board member, adviser or employee of another company, either directly or indirectly with the Company, or with its affiliates, competing operations. 7.2 Except in the cases mentioned below, the Company shall pay XXXXX BRINGSTRUP a monthly payment in arrears, as compensation for the inconvenience of the competitive prohibition on competition. The compensation shall be calculated as the difference of the income that XXXXX BRINGSTRUP subsequently earns, or could reasonably have earned in a new employment or other employment, and the average compensation received (including both fixed salary and variable remuneration) in the last 12 months before termination of employment. However, the remuneration from the Company shall never exceed sixty (60) per month of XXXXX BRINGSTRUP's average monthly remuneration per month during the period when the prohibition on competition applies. In the event that XXXXX BRINGSTRUP, despite reasonable measures to limit its loss of income, does not receive new employment or engage in other employment activities after termination of employment, compensation is paid monthly by sixty (60) percent of XXXXX BRINGSTRUP's average monthly compensation as set out above during the period of the competitive ban. The right to compensation from the Company in accordance with this paragraph assumes that there is a causal link between XXXXX BRINGSTRUP's commitment to prohibit competition and the loss of income arising from its application. Compensation is not paid if XXXXX BRINGSTRUP violates the prohibition on competition. 7.3 After the termination of employment, XXXXX BRINGSTRUP shall keep the Company informed of the size of its income from new employers or other business activities. Such notification shall be made in writing to the Company no later than the 15th of each month. If this does not happen, it is assumed that XXXXX BRINGSTRUP has not suffered any loss of income for that month, without the restriction of competition according to point 7.1, for that reason. 7.4 Compensation under this paragraph shall not be paid for the period during which XXXXX BRINGSTRUP may receive severance pay from the Company or if the employment terminates due to: (i) XXXXX BRINGSTRUP's retirement or (ii) cancellation of the Employment Agreement or the Company has terminated XXXXX BRINGSTRUP. 7.5 Both during the employment and after either party's termination of employment and as long as the prohibition on competition is in force, the Company can unilaterally, through notification to XXXXX BRINGSTRUP, limit the scope of the prohibition on competition or completely free XXXXX BRINGSTRUP from the obligation to comply with the prohibition on competition. In the event that the Company completely exempts XXXXX BRINGSTRUP from the obligation to comply with the prohibition on competition, the Company's liability under paragraph 7.2 above shall cease to apply. The company's possible exemption from the competition ban must be given with one month's notice period.

Prohibition of Competition. 7.1 The parties agree that XXXXX BRINGSTRUPJOHANSSON, through its position in the Company, will disclose corporate secrets that cannot be protected by patents or similar registration procedures, and whose use in competing activities would result in significant but for the Company. The parties also agree that it is a prerequisite for the Company, in confidence, to submit such information to XXXXX BRINGSTRUP JOHANSSON that the Company can ensure that XXXXX BRINGSTRUP JOHANSSON does not use the knowledge and contacts obtained through the employment to build or operate in operations that compete with the Company or its affiliates. It is therefore incumbent upon XXXXX BRINGSTRUP JOHANSSON to, during the term of the Employment Agreement and for nine (9) months from termination of employment, either himself or as owner, partner, board member, adviser or employee of another company, either directly or indirectly with the Company, or with its affiliates, competing operations. 7.2 Except in the cases mentioned below, the Company shall pay XXXXX BRINGSTRUP JOHANSSON a monthly payment in arrears, as compensation for the inconvenience of the competitive prohibition on competition. The compensation shall be calculated as the difference of the income that XXXXX BRINGSTRUP JOHANSSON subsequently earns, or could reasonably have earned in a new employment or other employment, and the average compensation received (including both fixed salary and variable remuneration) in the last 12 months before termination of employment. However, the remuneration from the Company shall never exceed sixty (60) per month of XXXXX BRINGSTRUPJOHANSSON's average monthly remuneration per month during the period when the prohibition on competition applies. In the event that XXXXX BRINGSTRUPJOHANSSON, despite reasonable measures to limit its loss of income, does not receive new employment or engage in other employment activities after termination of employment, compensation is paid monthly by sixty (60) percent of XXXXX BRINGSTRUPJOHANSSON's average monthly compensation as set out above during the period of the competitive ban. The right to compensation from the Company in accordance with this paragraph assumes that there is a causal link between XXXXX BRINGSTRUPJOHANSSON's commitment to prohibit competition and the loss of income arising from its application. Compensation is not paid if XXXXX BRINGSTRUP JOHANSSON violates the prohibition on competition. 7.3 After the termination of employment, XXXXX BRINGSTRUP JOHANSSON shall keep the Company informed of the size of its income from new employers or other business activities. Such notification shall be made in writing to the Company no later than the 15th of each month. If this does not happen, it is assumed that XXXXX BRINGSTRUP JOHANSSON has not suffered any loss of income for that month, without the restriction of competition according to point 7.1, for that reason. 7.4 Compensation under this paragraph shall not be paid for the period during which XXXXX BRINGSTRUP JOHANSSON may receive severance pay from the Company or if the employment terminates due to: (i) XXXXX BRINGSTRUPJOHANSSON's retirement or (ii) cancellation of the Employment Agreement or the Company has terminated XXXXX BRINGSTRUPJOHANSSON. 7.5 Both during the employment and after either party's termination of employment and as long as the prohibition on competition is in force, the Company can unilaterally, through notification to XXXXX BRINGSTRUPJOHANSSON, limit the scope of the prohibition on competition or completely free XXXXX BRINGSTRUP JOHANSSON from the obligation to comply with the prohibition on competition. In the event that the Company completely exempts XXXXX BRINGSTRUP JOHANSSON from the obligation to comply with the prohibition on competition, the Company's liability under paragraph 7.2 above shall cease to apply. The company's possible exemption from the competition ban must be given with one month's notice period.