Common use of Protective Covenant Clause in Contracts

Protective Covenant. Executive acknowledges and recognizes the highly competitive nature of the businesses of Company, the amount of sensitive and confidential information involved in the discharge of Executive’s position with Company, and the harm to Company that would result if such knowledge or expertise was disclosed or made available to a competitor. Based on that understanding, Executive hereby expressly agrees that Executive will not, directly or indirectly, at any time during the Employment Period, (i) engage in any business for Executive’s own account or otherwise derive any personal benefit from any business that competes with the business of The Company Group, (ii) enter the employ of, or render any services to, any person engaged in any business that competes with the business of any entity within The Company Group, or (iii) acquire a financial interest in any person engaged in any business that competes with the business of any entity within The Company Group as an individual, partner, member, shareholder, officer, director, principal, agent, trustee or consultant. For purposes of this Agreement, businesses in competition with The Company Group shall include, without limitation, businesses which any entity within The Company Group conducts operations as of Executive’s Severance Date, and any businesses that any entity within The Company Group has specific and reasonably achievable plans to conduct operations in the future and as to which Executive is aware of such planning, whether or not such businesses have or have not as of the Severance Date commenced operations. Notwithstanding the foregoing, Executive may own, solely as an investment, securities of any person which are publicly traded on a national or regional stock exchange or on an over-the-counter market if Executive (i) is not a controlling person of, or a member of a group which controls, such person, and (ii) does not, directly or indirectly, beneficially own more than five percent (5%) or more of any class of securities of such person. In addition, subject to approval by the Board, Executive shall be entitled to purchase securities of a business in competition with The Company Group if such securities are offered to investors irrespective of any employment or other participation in such business by the investor.

Protective Covenant. Executive acknowledges and recognizes the highly competitive nature of the businesses of Company, the amount of sensitive and confidential information involved in the discharge of Executive’s position with Company, and the harm to Company that would result if such knowledge or expertise was disclosed or made available to a competitor. Based on that understanding, Executive hereby expressly agrees that Executive he will not, directly or indirectly, at any time during the Employment PeriodPeriod and for a period of one (1) year thereafter, (i) engage in any business for Executive’s own account or otherwise derive any personal benefit from any business that competes directly or indirectly with the business of The Company Group, (ii) enter the employ of, or render any services to, any person engaged in any business that competes directly or indirectly with the business of any entity within The Company Group, or (iii) acquire a financial interest in any person engaged in any business that competes directly or indirectly with the business of any entity within The Company Group as an individual, partner, member, shareholder, officer, director, principal, agent, trustee or consultant. For purposes of this Agreement, businesses in competition with The Company Group shall include, without limitation, businesses which any entity within The Company Group conducts operations as of Executive’s Severance Date, and any businesses that any entity within The Company Group has specific and reasonably achievable plans to conduct operations in the future and as to which Executive is aware of such planning, whether or not such businesses have or have not as of the Severance Date commenced operations. Notwithstanding the foregoing, Executive may may, directly or indirectly, own, solely as an investment, securities of any person which are publicly traded on a national or regional stock exchange or on an over-the-counter market if Executive (i) is not a controlling person of, or a member of a group which controls, such person, and (ii) does not, directly or indirectly, beneficially own more than five percent (5%) or more of any class of securities of such person. In addition, subject to approval by the Board, Executive shall be entitled to purchase securities of a business in competition with The Company Group if such securities are offered to investors irrespective of any employment or other participation in such business by the investor.

Protective Covenant. Executive Employee acknowledges and recognizes the highly competitive nature of the businesses of Company, the amount of sensitive and confidential information involved in the discharge of ExecutiveEmployee’s position with Company, and the harm to Company that would result if such knowledge or expertise was disclosed or made available to a competitor. Based on that understanding, Executive Employee hereby expressly agrees that Executive he will not, directly or indirectly, at any time during the Employment PeriodPeriod and for a period of six (6) months thereafter, (i) engage in any business for ExecutiveEmployee’s own account or otherwise derive any personal benefit from any business that competes directly with the business of The Company Group, (ii) enter the employ of, or render any services to, any person engaged in any business that competes directly with the business of any entity within The Company Group, or (iii) acquire a financial interest in any person engaged in any business that competes directly with the business of any entity within The Company Group as an individual, partner, member, shareholder, officer, director, principal, agent, trustee or consultant. For purposes of this Agreement, businesses in competition with The Company Group shall include, without limitation, businesses which any entity within The Company Group conducts operations as of ExecutiveEmployee’s Severance Date, and any businesses that any entity within The Company Group has specific and reasonably realistically achievable plans to conduct operations in the future and as to which Executive Employee is aware of such planning, whether or not such businesses have or have not as of the Severance Date commenced operations. Notwithstanding the foregoing, Executive may Employee may, directly or indirectly, own, solely as an investment, securities of any person which are publicly traded on a national or regional stock exchange or on an over-the-counter market if Executive Employee (i) is not a controlling person of, or a member of a group which controls, such person, and (ii) does not, directly or indirectly, beneficially own more than five percent (5%) or more of any class of securities of such person. In addition, subject to approval by the Board, Executive Employee shall be entitled to purchase securities of a business in competition with The Company Group if such securities are offered to investors irrespective of any employment or other participation in such business by the investor.