Common use of Restrictive Covenants Clause in Contracts

Restrictive Covenants. The Executive agrees that he or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 8 contracts

Samples: Severance Agreement (Kinder Morgan Holdco LLC), Severance Agreement (Kinder Morgan Holdco LLC), Severance Agreement (Kinder Morgan Holdco LLC)

AutoNDA by SimpleDocs

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, the Employee agrees that he or she shall not, during the Non-Compete Periodterm of this Agreement, and for a period of three (3) years following the termination of this Agreement, the Employee shall not directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, member, employee, consultant, advisoragent, independent contractor or stockholder of, or representative), provide consulting or management services lender to, any company or permit his business, (i) engage in the business of solid waste collection, disposal or her name to be used recycling (the "Solid Waste Services Business") in connection with the activities of, any business or organization, engaged in a business that is competitive with a business market in which the Company or any of its Subsidiaries engages (a “Competitive Business”); providedsubsidiaries or affiliates does business, that ownership or any other line of less than one percent (1%) business which is entered into by the Company or any of its subsidiaries or affiliates during the outstanding stock of any publicly traded corporation shall not be deemed to be a violation term of this Section 5 solely by reason thereof; providedAgreement, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor (ii) compete with the Company or independent representative shall not be deemed to be a violation any of this Section 5 solely by reason thereof so long as providing such services is not its subsidiaries or affiliates in acquiring or merging with any other business or acquiring the primary duties or business activities assets of such individualother business; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;or (b) solicit for any Person who is orreason, within the prior twelve (12i) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a induce any customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates to patronize any business directly or attempt to persuade indirectly in competition with the Solid Waste Services Business conducted by the Company or any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its subsidiaries or affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries subsidiaries or affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer's or vendor's business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engage) withsubsidiaries or affiliates at or within the prior six months, or in any manner seek to the Executive’s knowledge, induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding employment. Notwithstanding the foregoing, general solicitations the beneficial ownership of employment published in less than five percent (5%) of the shares of stock of any corporation having a journal, newspaper class of equity securities actively traded on a national securities exchange or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors over-the-counter market shall not be deemed deemed, in and of itself, to constitute solicitation for purposes violate the prohibitions of this Section 5(c)Section. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 8 contracts

Samples: Annual Report, Annual Report, Employment Agreement (Republic Services Inc)

Restrictive Covenants. 16.1 The Executive agrees covenants with and undertakes to the Company that he or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):: (a) engage in, have an interest in, at any time during the Term or otherwise be employed by within three (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, 3) years from the date of the expiry or representative), provide consulting termination of the Term in Hong Kong or management services to, in the PRC or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business other jurisdiction in which the Company Group operates either alone or jointly with or as manager, agent or employee for any person, firm or company directly or indirectly and whether or not for gain: (i) engage or be engaged or interested in or concerned with the Business carried on from time to time by the Group or any of its Subsidiaries engages other business competing or likely to compete (a directly or indirectly) with the businesses operated by the Group from time to time (Competitive Restricted Business”); provided; (ii) take employment with any person, that ownership firm, company or organization engaged in the PRC or any other jurisdiction in which the Group operates whether directly or indirectly in any of less than the Restricted Business (but this restriction shall not operate so as to prohibit an employment none of the duties of which relate to such businesses) nor assist any such person, firm, company or organization with technical, commercial or professional advice in relation to the Restricted Business; (iii) be interested in any project or proposal on behalf or for the benefit of any person who within one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply year prior to the Executive following the expiry or termination of the Executive’s employment by Term is a principal, joint venture partner, contracting party or client of the Company, Group or an Affiliate of any of the provisions of this Section 5(a) shall be deemed waived with respect to the Executiveforegoing; (biv) solicit be interested in any Person who is orproject or proposal for the acquisition, within the prior twelve (12) monthsturning to account, was, development of or whose Affiliate is or, within the prior twelve (12) months, was a customer investment in any asset of the Company or any member of the Group, unless such asset is offered by the Company or any member of the Group for sale to, turning to account or development by third parties; or (b) at any time after the expiry of termination of the Term use for any purpose whatsoever the name or trading style of the Company in Hong Kong or in the PRC or any other part of the world or represent himself or themselves as carrying on or continuing or being connected with the Company or any member of the Group or (where applicable) any of its Subsidiaries shareholders or persuade their respective business; (c) within three (3) years from the date of the expiry or attempt termination of the Term, solicit or entice away from the Company or any member of the Group any director, manager or employee who has, at any time, during the period of one (1) year immediately preceding such expiry or termination been employed or engaged by the Company or any member of the Group; (d) within three (3) years from the date of the expiry or termination of the Term, employ or otherwise engage any person who has during the period of one (1) year immediately preceding such expiry or termination been a director, manager, employee of or consultant to persuade the Company or any member of the Group and who by reason of such Person not employment is or may be likely to be a customer in possession of any confidential information or trade secrets relating to the business of the Company or any member of its Subsidiaries the Group or to reduce the amount business of the customers of the Company; (e) within three (3) years from the date of the expiry or termination of the Term, solicit business that such customer does in competition with the Company or any member of its Subsidiariesthe Group from any person, firm, company or enter into organization which at any time during the period of one (1) year immediately preceding such expiry or seek to enter into any agreement (to termination has dealt with the extent Company or which on such agreement expiry or termination is in the process of a nature that is related to the business in which negotiating with the Company or any member of its Subsidiaries engage) withthe Group in relation to any of the Restricted Business, to and with whom or which during such period the Executive’s knowledge, any such PersonExecutive has had personal dealings in the course of his Term; orand (cf) contactwithin three (3) years from the date of the expiry or termination of the Term, approach solicit or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by entice away from the Company or its Affiliates as an employee any member of the Group any customer or supplier who has, at any time, during the period of one (1) year immediately preceding twelve (12) months such expiry or attempt to persuade any Person not to continue to be employed termination been a customer or retained by supplier of the Company or its Affiliates or to terminate his or her employment or services with any member of the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Group. (d) Notwithstanding anything to 16.2 While the contrary restrictions contained in this Section 5, with respect clause are considered by the parties to be reasonable in all the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities circumstances it is recognised that are competitive with the businesses in which any restrictions of the Mexican Subsidiaries of nature in question may fail for technical reasons unforeseen and accordingly it is hereby agreed and declared that if any such restrictions shall be adjudged to be void as going beyond what is reasonable in all the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary circumstances for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach interests of the provisions of this Section 5 will cause the Company irreparable harm, which cannot but would be adequately compensated by money damages, (y) valid if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority part of the members wording thereof were deleted or amended or the periods (if any) thereof were reduced or the range of businesses or area dealt with thereby were reduced in scope the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches said restriction or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any restrictions shall apply with such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies modifications as may be available necessary to make it or them valid, effective and enforceable. 16.3 Since the Company Executive may also obtain in the course of his Term hereunder by reason of services rendered for such breach, including the recovery of money damages. If or offices held in any other company knowledge of the provisions trade secrets or other confidential information of this Section 5 are determined to be wholly or partially unenforceablesuch company, the Executive hereby agrees that this Agreement he will at the request and cost of the Company enter into a direct agreement or undertaking with such company whereby he will accept restrictions corresponding to the restrictions herein contained (or such of them as may be appropriate in the circumstances) in relation to such products and services and such area and for such period the Company may reasonably require for the protection of its legitimate interests. 16.4 The Company hereby covenants with and undertakes in favor of the Executive that neither it nor any of its subsidiaries will after the expiry or termination of the Term use the Executive’s name or represent that the Executive is carrying on or continuing to be or being connected with the Company or any provision hereof may be reformed so member of the Group or their respective businesses whether in Hong Kong or the PRC or elsewhere. 16.5 For the purposes of clause 16.1: (a) “employee” includes any staff of the Company or any member of the Group or any successors thereof; and (b) “assets” include intellectual property rights and know-how of all forms and descriptions that it is enforceable are related to the maximum extent permitted by law. If any of the provisions principal businesses carried on from time to time by the Company or any member of this Section 5 are determined the Group during the Term and all licenses and rights to be wholly use or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce apply any such covenant in any other jurisdictionrights or know-how. 16.6 For the purposes of clause 16.3:

Appears in 7 contracts

Samples: Service Agreement (Pantheon Arizona Corp.), Service Agreement (Pantheon Arizona Corp.), Service Agreement (China Cord Blood Corp)

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, Employee agrees that he or she shall not, during the Non-Compete Periodterm of this Agreement, and for a period of three (3) years following the termination of this Agreement, Employee shall not directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, member, employee, consultant, advisoragent, independent contractor or stockholder of, or representative), provide consulting or management services lender to, any company or permit his business, (i) engage in the business of solid waste collection, disposal or her name to be used recycling (the “Solid Waste Services Business”) in connection with the activities of, any business or organization, engaged in a business that is competitive with a business market in which the Company or any of its Subsidiaries engages (a “Competitive Business”); providedsubsidiaries or affiliates does business, that ownership or any other line of less than one percent (1%) business which is entered into by the Company or any of its subsidiaries or affiliates during the outstanding stock of any publicly traded corporation shall not be deemed to be a violation term of this Section 5 solely by reason thereof; providedAgreement, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor (ii) compete with the Company or independent representative shall not be deemed to be a violation any of this Section 5 solely by reason thereof so long as providing such services is not its subsidiaries or affiliates in acquiring or merging with any other business or acquiring the primary duties or business activities assets of such individualother business; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;or (b) solicit for any Person who is orreason, within the prior twelve (12i) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a induce any customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates to patronize any business directly or attempt to persuade indirectly in competition with the Solid Waste Services Business conducted by the Company or any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its subsidiaries or affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries subsidiaries or affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer’s or vendor’s business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engage) withsubsidiaries or affiliates at or within the prior six months, or in any manner seek to the Executive’s knowledge, induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding employment. Notwithstanding the foregoing, general solicitations the beneficial ownership of employment published in less than five percent (5%) of the shares of stock of any corporation having a journal, newspaper class of equity securities actively traded on a national securities exchange or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors over-the-counter market shall not be deemed deemed, in and of itself, to constitute solicitation for purposes violate the prohibitions of this Section 5(c)Section. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 6 contracts

Samples: Employment Agreement (Republic Services Inc), Employment Agreement (Republic Services Inc), Employment Agreement (Republic Services, Inc.)

Restrictive Covenants. The Executive agrees (a) During the Employment Term and, in the event that he or she shall notthe Employee's employment is terminated for any reason (including the non-renewal of this Agreement in accordance with Section 2(b) above), during the Non18-Compete Periodmonth period following such termination, the Employee will not directly or indirectly (other than on behalf of as a director, officer, executive employee, manager, consultant, independent contractor, advisor or at the request of the Company or its Subsidiaries): (aotherwise) engage inin competition with, have an or own any interest in, perform any services for, participate in or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection connected with the activities of, any business or organization, engaged organization that engages in a business that is competitive competition with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”the FIRSTPLUS Companies within the meaning of Section 8(d); , provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedhowever, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a8(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation prohibit the Employee's ownership of not more than 2% of the total shares of all classes of stock outstanding of any publicly held company. (b) In the event that the Employee's employment is terminated for purposes any reason (including the non-renewal of this Agreement in accordance with Section 5(c2(b) above), during the 18-month period following such termination, the Employee will not directly or indirectly hire, solicit, retain, compensate or otherwise induce or attempt to induce any person who is and/or was an employee of any of the FIRSTPLUS Companies at any time during the six months prior to the Employee's termination, to leave the employ of the FIRSTPLUS Companies, or in any way interfere with the relationship between any of the FIRSTPLUS Companies and any employee thereof. (c) During the Employment Term and, in the event that the Employee's employment is terminated for any reason (including the non-renewal of this Agreement in accordance with Section 2(b) above), during the 18-month period following such termination, the Employee will not directly or indirectly hire, engage, send any work to, place orders with, or in any manner be associated with any supplier, contractor, subcontractor or other business relation of any of the FIRSTPLUS Companies if such action by the Employee would have a material adverse effect on the business, assets or financial condition of any of the FIRSTPLUS Companies, or materially interfere with the relationship between any such person or entity and any of the FIRSTPLUS Companies. (d) Notwithstanding anything to the contrary For all purposes in this Section 58, a person or entity (including without limitation, the Employee) shall be deemed to be a competitor of or engaging in competition with respect to one or more of the country FIRSTPLUS Companies, if such person or entity engages in any business competing with, or substantially similar to, the businesses of Mexicoone or more of the FIRSTPLUS Companies, this Section 5 will only apply (and therefore will be limited) to activities that are competitive as such businesses exist at the time of termination of the Employee's employment with the businesses Company in any state of the United States of America in which any of the Mexican Subsidiaries FIRSTPLUS Companies conduct, or are actively investigating the possibility of conducting, their businesses at the Company engagestime of such termination. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause 8 shall cease to be applicable to any state in which the Company irreparable harmFIRSTPLUS Companies are actively investigating the possibility of conducting their businesses at the time of termination of Employee's employment with the Company, which cannot unless within three months after such termination, the FIRSTPLUS Companies, or any of them, have commenced soliciting prospective customers in such state, and have effectuated either of the following: (i) the opening of an office in such state; or (ii) the hiring of one or more employees to be adequately compensated by money damages, employed in such state or the assignment of one or more incumbent employees to solicit business in such state. (ye) if In connection with the Executive breaches or threatens to breach the foregoing provisions of this Section 5 8, the Employee represents that his experience, capabilities and circumstances are such that such provisions will not prevent him from earning a livelihood. The Employee further agrees that the Company limitations set forth in this Section 8 (by vote of a majority including, without limitation, time limitations) are reasonable and properly required for the adequate protection of the members current and future businesses of the BoardFIRSTPLUS Companies. It is understood that the covenants made by the Employee in this Section 8 (and in Section 6 hereof) seeks an injunction against shall survive the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches expiration or threatens to breach the provisions termination of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionAgreement.

Appears in 5 contracts

Samples: Employment Agreement (Firstplus Financial Group Inc), Employment Agreement (Firstplus Financial Group Inc), Employment Agreement (Firstplus Financial Group Inc)

Restrictive Covenants. The Executive agrees Unless otherwise determined by the Committee in its sole discretion, by accepting the RSUs, the Grantee acknowledges that he or she shall not, during the Non-Compete Period, directly or indirectly Grantee is bound by the following restrictive covenants (other than on behalf of or at the request of the Company or its Subsidiaries“Restrictive Covenants”): (a) engage inExcept to the extent (1) expressly authorized in writing by the Company or (2) required by law or any legal process, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection the Grantee shall not at any time during the Grantee’s Employment with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking Affiliates or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of date the ExecutiveGrantee’s employment by the CompanyEmployment terminates use, the provisions of this disseminate, disclose or divulge to any person or to any firm, corporation, association or other business entity, Confidential Information (as defined in Section 5(a20 herein) shall be deemed waived with respect to the Executive; or proprietary Trade Secrets (bas defined in Section 20 herein) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries Affiliates; (b) The Grantee shall not at any time during the Grantee’s Employment with the Company or persuade any of its Affiliates or attempt to persuade following the date the Grantee’s Employment terminates make any such Person derogatory, disparaging or negative statements, orally, written or otherwise, against the Company or any of its Affiliates or any of their respective directors, officers and employees; (c) During the Restricted Period (as defined in Section 20 herein), the Grantee shall not to be become employed in any capacity by, or become an officer, employee, director, agent, consultant, shareholder or partner of, or perform any services for, or otherwise hold an interest (other than the ownership of less than 5% of the stock or other equity interests of a customer publicly traded firm or corporation) in, any Competitor (as defined in Section 20 herein) of the Company or any of its Subsidiaries Affiliates; (d) During the Restricted Period, the Grantee shall not directly or indirectly, on his or her own behalf or on behalf of any other person or entity, solicit or hire, attempt to reduce solicit or hire, or assist any other person in soliciting or hiring any employee, agent or contractor of the amount Company or any of its Affiliates or induce any employee, agent or contractor of the Company or any of its Affiliates to terminate his or her or her Employment or cease doing business that such customer does with the Company or any of its SubsidiariesAffiliates for any reason whatsoever; and (e) During the Restricted Period, the Grantee shall not directly or enter into indirectly, on his or seek to enter into her own behalf or on behalf of any agreement (to the extent such agreement is other person or entity, including any Competitor of a nature that is related to the business in which the Company or any of its Subsidiaries engageAffiliates, (1) with, to the Executive’s knowledge, engage in any such Person; or (c) contact, approach business transaction or solicit for the purpose of offering employment to relationship or hiring or retaining, or actually hire or retain perform any Person who is or was employed or retained by services in any material way competitive with the Company or any of its Affiliates as an employee during the immediately preceding twelve (12) months with or attempt to persuade any Person not to continue to be employed for a client or retained by prospective client of the Company or any of its Affiliates or (2) interfere with any business relationship between the Company or any of its Affiliates and any client or prospective client of the Company or any of its Affiliates or induce any client or prospective client to discontinue any business relationship with the Company or any of its Affiliates or to terminate his refrain from entering into a business relationship or her employment or services transaction with the Company or any of its Affiliates; provided. The Restrictive Covenants are in addition to and do not supersede any rights the Company or any of its Affiliates may have in law or at equity or under any other agreement. By accepting the RSUs, the Grantee shall further agree that notwithstanding it is impossible to measure in money the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything damages which will accrue to the contrary Company or any of its Affiliates in this Section 5the event the Grantee breaches the Restrictive Covenants. Therefore, with respect if the Company or any of its Affiliates shall institute any action or proceeding to enforce the country provisions hereof, the Grantee shall agree to waive the claim or defense that the Company or any of Mexico, this Section 5 will only apply (its Affiliates has an adequate remedy at law and therefore will be limited) the Grantee shall agree not to activities assert in any such action or proceeding the claim or defense that are competitive with the businesses in which Company or any of its Affiliates has an adequate remedy at law. If at any time the Committee reasonably believes that the Grantee has breached any of the Mexican Subsidiaries Restrictive Covenants described in Sections 8(a) through 8(e), the Committee may suspend the vesting of Grantee’s RSUs pending a good faith determination by the Committee of whether any such Restrictive Covenant has been breached, it being understood that such suspension shall not cause the settlement to be delayed beyond the last date that settlement may occur pursuant to Section 4(b) hereof. If the Committee determines in good faith that the Grantee has breached any such Restricted Covenants, the Grantee shall immediately forfeit any outstanding unvested RSUs and shall repay to the Company, upon demand, any Common Stock or cash issued upon the settlement of the Company engagesGrantee’s RSUs if the vesting of such RSUs occurred during such breach. The Executive acknowledges Grantee shall also be required to repay to the Company, in cash and agrees that: upon demand, any proceeds resulting from the sale or other disposition (1including to the Company) the time and geographical scope of Common Stock issued upon settlement of the restrictions of this Section 5 are reasonable; (2) Grantee’s RSUs if the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiariessale or disposition was effected at any time during such breach. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination foregoing shall not be a bar to or in any way diminish prejudice the Company’s right to enforce require the Grantee to account for and pay over to the Company on a pre-tax basis any such covenant in profit obtained by the Grantee as a result of any other jurisdictiontransaction constituting a breach of the Restrictive Covenants.

Appears in 5 contracts

Samples: Restricted Stock Unit Grant Agreement (International Seaways, Inc.), Restricted Stock Unit Grant Agreement (International Seaways, Inc.), Restricted Stock Unit Grant Agreement (International Seaways, Inc.)

Restrictive Covenants. (a) The Executive agrees that he or she shall not, at any time during the Non-Compete Restricted Period, directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation, partnership, business or entity (other than on behalf whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in (either directly or through any subsidiary or Affiliate thereof) any business or activity (i) relating to midstream assets (including, without limitation, the gathering, processing and transportation of or at natural gas and crude oil) in North America, which competes with the request business of the Company or its Subsidiaries): (a) engage in, have an interest inany entity owned by the Company, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in ii) which the Company or any of its Subsidiaries Affiliates has taken active steps to engage in or acquire, but only if the Executive directly or indirectly engages in, has any equity interest in, or manages or operates, such business or activity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise). Notwithstanding the foregoing, the Executive shall be permitted to acquire a “Competitive Business”)passive stock or equity interest in such a business; provided, provided that ownership of less such stock or other equity interest acquired is not more than one five percent (15%) of the outstanding stock interest in such business. (b) The Executive shall not, at any time during the Term or during the twelve (12)-month period immediately following the Date of Termination, directly or indirectly, either for himself or on behalf of any publicly traded corporation other entity, (i) recruit or otherwise solicit or induce any employee, customer, subscriber or supplier of the Company to terminate its employment or arrangement with the Company, or otherwise change its relationship with the Company, or (ii) hire, or cause to be hired, any person who was employed by the Company and served in a capacity of “vice president” (or any person serving in a capacity senior to vice president) at any time during the twelve (12)-month period immediately prior to the Date of Termination, to terminate his or her employment with the Company. (c) The provisions contained in Sections 7(a) and (b) may be altered and/or waived to be made less restrictive on the Executive with the prior written consent of the Board or the Compensation Committee. (d) Except as the Executive reasonably and in good faith determines to be required in the faithful performance of the Executive’s duties hereunder or in accordance with Section 7(f), the Executive shall, during the Term and after the Date of Termination, maintain in confidence and shall not be deemed directly or indirectly, use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity, any confidential or proprietary information or trade secrets of or relating to be a violation the Company, including, without limitation, information with respect to the Company’s operations, processes, protocols, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of this Section 5 solely by reason thereof; providedemployment (“Proprietary Information”), furtheror deliver to any person, thatfirm, providing investment banking corporation or legal services other entity, any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information. The Executive’s obligation to a Competitive Business as an independent consultantmaintain and not use, independent advisor disseminate, disclose or independent representative shall not be deemed to be a violation publish, or use for the Executive’s benefit or the benefit of this Section 5 solely by reason thereof any person, firm, corporation or other entity, any Proprietary Information after the Date of Termination will continue so long as providing such services Proprietary Information is not, or has not by legitimate means become, generally known and in the primary duties public domain (other than by means of the Executive’s direct or business activities indirect disclosure of such individualProprietary Information) and continues to be maintained as Proprietary Information by the Company. The parties hereby stipulate and agree that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the Company (and any successor or assignee of the Company). (e) Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans, marketing strategies, products or processes. (f) The Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company (if lawfully permitted to do so) the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process. Upon notification from Executive of such subpoena or other legal process, but only to the extent that such notification is provided during the Restricted Period, the Company shall, at its reasonable expense, retain mutually acceptable legal counsel to represent Executive in connection with Executive’s response to any such subpoena or other legal process. The Executive may also disclose Proprietary Information if: (i) in the reasonable written opinion of counsel for the Executive furnished to the Company, such information is required to be disclosed for the Executive not to be in violation of any applicable law or regulation or (ii) the Executive is required to disclose such information in connection with the enforcement of any rights under this Agreement or any other agreements between the Executive and the Company. (g) The Executive agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, equity holders or Affiliates, either orally or in writing, at any time; providedprovided that the Executive may confer in confidence with the Executive’s legal representatives, furthermake truthful statements to any government agency in sworn testimony, or make truthful statements as otherwise required by law. The Company agrees that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following upon the termination of the Executive’s employment by hereunder, it shall advise its directors and executive officers not to disparage the Executive, either orally or in writing, at any time; provided that they may confer in confidence with the Company’s and their legal representatives and make truthful statements as required by law. (h) Prior to accepting other employment or any other service relationship during the Restricted Period, the provisions Executive shall provide a copy of this Section 5(a) shall be deemed waived 7 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any employer or person with respect to which the Executive;Executive discusses potential employment or any other service relationship. (bi) solicit any Person who is or, within In the prior twelve (12) months, was, or whose Affiliate is or, within event the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes terms of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) 7 shall be entitled to temporary and permanent injunctive relief from a determined by any court of competent jurisdictionjurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, without posting any bond or other security and without it will be interpreted to extend only over the necessity maximum period of proof of actual damage, in addition to, and not in lieu of, such other remedies as time for which it may be available enforceable, over the maximum geographical area as to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof which it may be reformed so that it is enforceable enforceable, or to the maximum extent permitted in all other respects as to which it may be enforceable, all as determined by law. If such court in such action. (j) As used in this Section 7, the term “Company” shall include the Company, its parent, related entities, and any of the provisions of this Section 5 are determined to be wholly its direct or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionindirect subsidiaries.

Appears in 5 contracts

Samples: Employment Agreement (Summit Midstream Partners, LP), Employment Agreement (Summit Midstream Partners, LP), Employment Agreement (Summit Midstream Partners, LP)

Restrictive Covenants. The During the period of time the Executive agrees that he or she is employed by EVERYWARE and for a six month period thereafter (the “Restricted Period”), the Executive shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request indirectly, in any state of the Company United States or its Subsidiaries): in Canada or Mexico (athe “Prohibited Area”): (i) engage in, have an interest in, in or otherwise be employed by participate in any business which competes with EVERYWARE’s Business; or (whether as an ownerii) become a partner, operator, partnershareholder, member, managerother owner or equity holder, principal, agent, trustee, employee, officer, director, consultant, advisoror creditor of any person or entity who engages or otherwise participates in any business which competes with EVERYWARE’s Business. (a) During the Restricted Period, the Executive shall not, directly or indirectly, knowingly solicit or encourage to leave the employment of EVERYWARE, any employee of EVERYWARE or hire any employee of EVERYWARE for a period of one year of the date that Executive ceases to be employed by EVERYWARE. (b) During the Restricted Period, the Executive shall not call on, or representative)solicit any customer, provide consulting supplier, independent contractor or management services toother business relationship of EVERYWARE or any of its subsidiaries, in order to induce or attempt to induce such customer, supplier, independent contractor or other business relationship to cease doing business with EVERYWARE or any of its subsidiaries, or permit his or her name to be used in connection any way materially interfere with the activities ofrelationship between any customer, supplier, independent contractor or business relationship and EVERYWARE or any of its subsidiaries (including any disparaging statements about EVERYWARE or any of its subsidiaries). (c) The Restricted Period shall be tolled during the period of any violation of this section by the Executive or any period when the Executive takes significant and material steps towards developing a business or organization, engaged in plan for a business that is competitive in competition with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation EVERYWARE. EVERYWARE shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply provide written notice to the Executive following the termination of any tolling of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Restricted Period. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on If the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harmbreaches, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit a breach of, any breach, the Company (by vote of a majority of the members provisions contained in this section (the “Restrictive Covenants”), EVERYWARE shall have the following rights and remedies, each of which rights and remedies shall be independent of the Board) other and severally enforceable, and all of which rights and remedies shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such any other rights and remedies as may be available to EVERYWARE under law or in equity: (i) The right and remedy to have the Company Restrictive Covenants specifically enforced (without posting any bond) by any court having equity jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory, temporary, and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable harm to EVERYWARE and that money damages will not provide adequate remedy to EVERYWARE. (ii) The right and remedy to require the Executive to account for such breachand pay over to EVERYWARE all compensation, including profits, monies, accruals, increments of other benefits derived or received by the recovery Executive as the result of money damages. If any transaction constituting a breach of any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionRestrictive Covenants.

Appears in 4 contracts

Samples: Employment Agreement (EveryWare Global, Inc.), Employment Agreement (EveryWare Global, Inc.), Employment Agreement (EveryWare Global, Inc.)

Restrictive Covenants. The Executive acknowledges and agrees that (a) through his continuing services to the Company, he will learn valuable trade secrets and other proprietary information relating to the Company's business; (b) the Executive's services to the Company are unique in nature; (c) the Company's business is national in scope; and (d) the Company would be irreparably damaged if the Executive were to provide services to any person or entity in violation of the restrictions contained in this Agreement. Accordingly, as an inducement to the Company to enter into this Agreement, the Executive agrees that he or she during the Term and for two years thereafter (such period being referred to herein as the "Restricted Period"), the Executive shall not, during the Non-Compete Period, directly or indirectly (indirectly, either for himself or for any other than on behalf of person or at entity, without the request prior written consent of the Company or its Subsidiaries):Board of Directors of GE Fanuc: (a) anywhere in the United States, engage in, have an interest or participate in, or otherwise assist, advise or be employed by connected with (whether including as an employee, owner, operator, partner, member, manager, employeeshareholder, officer, director, advisor, consultant, advisor, agent or representative(without limitation by the specific enumeration of the foregoing) otherwise), provide consulting or management services to, or permit his or her name to be used in connection with the activities ofby or render services for, any business person or organizationentity engaged in, engaged in or making plans to engage in, a business that is competitive competes with a the business in which the Company conducted by, or proposed to be conducted by, GE Fanuc or any of its Subsidiaries engages subsidiaries (a “Competitive "Competing Business"); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit take any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company action which might divert from GE Fanuc or any of its Subsidiaries or persuade or attempt to persuade subsidiaries any such Person not to opportunity (each, an "Opportunity") which would be a customer within the scope of the Company business then conducted by GE Fanuc or any of its Subsidiaries subsidiaries and shall offer each Opportunity to GE Fanuc, which GE Fanuc may, in its sole discretion, decide to pursue or not; (c) solicit, attempt to reduce solicit, aid in the amount solicitation of business that such or accept any orders from any person or entity who is or has been a customer does with the Company of GE Fanuc or any of its Subsidiariessubsidiaries, or enter into or seek to enter into at any agreement (time during the period beginning one year prior to the extent such agreement is date of a nature that is related termination of his employment through the Restrictive Period, to purchase products or services from any person or entity which products or services could have been supplied or performed, as the business in which the Company case may be, by GE Fanuc or any of its Subsidiaries engagesubsidiaries (other than from GE Fanuc or any of its subsidiaries); (d) withsolicit, attempt to solicit or aid in the solicitation of any person or entity who is or has been a customer, supplier, licensor, licensee or person or entity having any other business relationship with GE Fanuc or any of its subsidiaries, at any time during the period beginning one year prior to the date of termination of his employment through the Restrictive Period, to the Executive’s knowledge, cease doing business with or alter its business relationship with GE Fanuc or any such Personof its subsidiaries; or (ce) contact, approach solicit or solicit for the purpose of offering employment to hire any person or hiring or retaining, or actually hire or retain any Person entity who is a director, officer or was employed employee of GE Fanuc or retained by the Company any of its subsidiaries to perform services for any person or entity other than GE Fanuc or any of its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates subsidiaries or to terminate his or her employment with GE Fanuc or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionsubsidiaries.

Appears in 4 contracts

Samples: Employment Agreement (General Electric Co), Employment Agreement (Total Control Products Inc), Employment Agreement (General Electric Co)

Restrictive Covenants. The Executive agrees 8.1 You hereby agree that he or she shall not, during for the Non-Compete Period, directly or indirectly (other than on behalf duration of or at the request of your employment with the Company or its Subsidiaries):and for a period of six (6) months commencing from your last day of service with the Company, you shall not at any time: (a) engage inon your own behalf or on the behalf of or in association with a third party or in any capacity whatsoever, have an interest inentice or seek to entice away from the Company and/or any of its affiliates, any directors, officers or otherwise be employed by (employees, whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit not any such person would thereby commit a breach of his or her name to be used in connection with the activities of, any business contract of service or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executiveemployment; (b) on your own behalf or in association of or in association with any third party or in any capacity whatsoever, solicit or seek to solicit the business of any Person who is orperson, within the prior twelve (12) monthsfirm, wascompany or party which at any time has been a customer or client of, or whose Affiliate is orsupplier of goods or services to, within the prior twelve (12) months, was a customer of the Company or and/or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of affiliates, in competition with the Company or and/or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personaffiliates; orand (c) contactbe engaged, approach concerned or solicit for the purpose interested whether directly or indirectly and whether on your own behalf or on behalf of offering employment to or hiring in association with any third party or retainingin any capacity, whatsoever, in operating, performing, carrying on, or actually hire or retain being employed by any Person who is or was employed or retained business that competes with the business carried on by the Company or and/or any of its Affiliates as an employee during affiliates for the immediately preceding twelve (12) months or attempt to persuade time being in any Person not to continue to be employed or retained by territory which the Company or and/or any of its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)affiliates operate. 8.2 You further agree that: (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4a) the restrictions of contained in this Section 5 paragraph 8 are no greater than is reasonable and necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor interests of the Company. The Executive consents and agrees that if the Executive commits If any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) restriction shall be entitled held to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond be void but would be valid if deleted in part or other security and without the necessity of proof of actual damage, reduced in addition to, and not in lieu ofapplication, such other remedies restriction shall apply with such deletion or modification as may be available necessary to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that make it valid and enforceable; (b) your salary paid under this Agreement or any provision hereof may includes consideration for the obligations you have agreed to in paragraphs 8, 9 and 10 and that no other payments will be reformed so that it is enforceable made to you during the period of your obligations and/or restrictions under paragraphs 8, 9 and 10; (c) you intend the obligations and/or restrictions under paragraphs 8, 9 and 10 to operate to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined extent; (d) damages may be inadequate to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish protect the Company’s right interests and the Company is entitled to enforce seek and obtain injunctive relief, or any such covenant other remedy, in any court in connection with the obligations and/or restrictions under paragraphs 8, 9 and 10; and (e) the obligations and/or restrictions under paragraphs 8, 9 and 10 are separate, distinct and several, so that the unenforceability of any obligation and/or restriction does not affect the enforceability of the other jurisdictionobligation and/or restriction. 8.3 Your obligations under this paragraph 8 will continue after your employment ends.

Appears in 4 contracts

Samples: Letter of Employment (ALR Technologies SG Ltd.), Letter of Employment (ALR Technologies SG Ltd.), Letter of Employment (Alr Technologies Inc.)

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, Employee agrees that he or she shall not, during the Non-Compete Periodterm of this Agreement, and for a period of two (2) years (three (3) years in the event Section 4(a) hereof is applicable) following the termination of this Agreement, Employee shall not directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, member, employee, consultant, advisoragent, independent contractor or stockholder of, or representative), provide consulting or management services lender to, any company or permit his business, (i) engage in the business of solid waste collection, disposal or her name to be used recycling (the “Solid Waste Services Business”) in connection with the activities of, any business or organization, engaged in a business that is competitive with a business market in which the Company or any of its Subsidiaries engages (a “Competitive Business”); providedsubsidiaries or affiliates does business, that ownership or any other line of less than one percent (1%) business which is entered into by the Company or any of its subsidiaries or affiliates during the outstanding stock of any publicly traded corporation shall not be deemed to be a violation term of this Section 5 solely by reason thereof; providedAgreement, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor (ii) compete with the Company or independent representative shall not be deemed to be a violation any of this Section 5 solely by reason thereof so long as providing such services is not its subsidiaries or affiliates in acquiring or merging with any other business or acquiring the primary duties or business activities assets of such individualother business; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;or (b) solicit for any Person who is orreason, within the prior twelve (12i) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a induce any customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates to patronize any business directly or attempt to persuade indirectly in competition with the Solid Waste Services Business conducted by the Company or any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its subsidiaries or affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries subsidiaries or affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer’s or vendor’s business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engage) withsubsidiaries or affiliates at or within the prior six months, or in any manner seek to the Executive’s knowledge, induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding employment. Notwithstanding the foregoing, general solicitations the beneficial ownership of employment published in less than five percent (5%) of the shares of stock of any corporation having a journal, newspaper class of equity securities actively traded on a national securities exchange or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors over-the-counter market shall not be deemed deemed, in and of itself, to constitute solicitation for purposes violate the prohibitions of this Section 5(c)Section. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 4 contracts

Samples: Employment Agreement (Republic Services, Inc.), Employment Agreement (Republic Services, Inc.), Employment Agreement (Republic Services, Inc.)

Restrictive Covenants. The 8.1 During the Executive’s employment with the Company and for a period of twelve (12) months thereafter: (A) the Executive agrees that he or she shall not, during directly for the Non-Compete PeriodExecutive or any third party, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used become engaged in connection with the activities of, any business or organizationactivity which is directly in competition with any services or products sold by, or any business or activity engaged in a business that is competitive with a business in which by, the Company or any of its Subsidiaries engages (a “Competitive Business”)affiliates; provided, however, that ownership of less than one percent (1%) this provision shall not restrict the Executive from owning or investing in publicly traded securities, so long as the Executive’s aggregate holdings in such company do not exceed 2% of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities equity of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executivecompany and such investment is passive; (bB) the Executive shall not solicit any Person person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries affiliates during the period of the Executive’s employment hereunder, or persuade solicit potential customers who are or were identified through leads developed during the course of employment with the Company, or otherwise divert or attempt to persuade divert any such Person not to be a customer existing business of the Company or any of its Subsidiaries affiliates; and (C) the Executive shall not, directly for the Executive or to reduce any third party, solicit, induce, recruit or cause another person in the amount employment of business that such customer does with the Company or any of its Subsidiariesaffiliates to terminate such employee’s employment for the purposes of joining, associating, or enter into becoming employed with any business or seek to enter into activity which is in competition with any agreement (to the extent such agreement is of a nature that is related to the services or products sold, or any business in which or activity engaged in, by the Company or any of its Subsidiaries engageaffiliates. 8.2 The Executive agrees that he will not, while employed with the Company or at any time thereafter for any reason, in any fashion, form or manner, either directly or indirectly, divulge, disclose or communicate to any person, firm, corporation or other business entity, in any manner whatsoever, any confidential information or trade secrets concerning the business of the Company, including, without limiting the generality of the foregoing, any customer lists or other customer identifying information, the techniques, methods or systems of the Company’s operation or management, any information regarding its financial matters, or any other material information concerning the business of the Company, its manner of operation, its plans or other material data. The provisions of this Section 8.2 shall not apply to (i) withinformation that is public knowledge other than as a result of disclosure by the Executive in breach of this Section 8.2; (ii) information disseminated by the Company to third parties in the ordinary course of business; (iii) information lawfully received by the Executive from a third party who, based upon inquiry by the Executive, is not bound by a confidential relationship to the Company, or (iv) information disclosed under a requirement of law or as directed by applicable legal authority having jurisdiction over the Executive. 8.3 The Executive agrees that he will not, while employed with the Company or at any time thereafter for any reason, in any fashion, form or manner, either directly or indirectly, disparage or criticize the Company, or otherwise speak of the Company, in any negative or unflattering way to anyone with regard to any matters relating to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months business or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor practices of the Company. The Executive consents and Company agrees that if it will not, in any fashion, form or manner, either directly or indirectly, disparage or criticize the Executive commits or otherwise speak of the Executive in any such breach negative or threatens unflattering way to commit anyone with regard to any breachmatters relating to the Executive’s employment with the Company. This Section shall not operate as a bar to (i) statements reasonably necessary to be made in any judicial, administrative or arbitral proceeding, or (ii) internal communications between and among the employees of the Company with a job-related need to know about this Agreement or matters related to the administration of this Agreement. 8.4 The Executive understands that in the event of a violation of any provision of Section 8, the Company shall have the right to (i) seek injunctive relief, in addition to any other existing rights provided in this Agreement or by vote operation of a majority law, without the requirement of the members of the Boardposting bond and (ii) stop making any future payments or providing benefits under this Agreement. The remedies provided in this Section 8.4 shall be entitled in addition to temporary any legal or equitable remedies existing at law or provided for in any other agreement between the Executive and permanent injunctive relief from the Company or any of its affiliates, and shall not be construed as a limitation upon, or as an alternative or in lieu of, any such remedies. If any provisions of Section 8 shall be determined by a court of competent jurisdictionjurisdiction to be unenforceable in part by reason of it being too great a period of time or covering too great a geographical area, without posting it shall be in full force and effect as to that period of time or geographical area determined to be reasonable by the court. 8.5 The Executive acknowledges that the provisions of Section 8 shall extend to any bond business that becomes an affiliate of or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available successor to the Company for such breach, including the recovery of money damages. If or any of the provisions its affiliates on account of this Section 5 are determined to be wholly a Change in Control or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionotherwise.

Appears in 4 contracts

Samples: Change in Control Severance Agreement (Armstrong Flooring, Inc.), Change in Control Severance Agreement (Armstrong World Industries Inc), Change in Control Severance Agreement (Armstrong World Industries Inc)

Restrictive Covenants. The Executive If the employment of the Employee is terminated for any reason (including voluntary resignation), then the Employee agrees that for a period of two (2) years thereafter, he or she shall will not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (ai) engage in, have an interest inalone or for his own account, or otherwise be employed by (whether as an owner, operator, a partner, member, manageremployee, employeeadvisor, or agent of any partnership or joint venture, or as a trustee, officer, director, consultantshareholder, employee, advisor, or representative)agent of any corporation, provide consulting or management services totrust, or permit his other business organization or her name to entity, encourage, support, finance, be used in connection engaged in, interested in, or concerned with the activities of, any business having an office or organization, engaged in being conducted within a radius of fifty (50) miles of any funeral home or cemetery business that is competitive with a business in which owned or operated by the Company or any of its Subsidiaries engages (a “Competitive Business”); providedsubsidiaries at the time of such termination, that ownership of less than one percent (1%) which business is directly or indirectly in competition with the business of the outstanding stock of Company or any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executivesubsidiary; (bii) solicit induce or assist anyone in inducing in any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer way any employee of the Company or any of its Subsidiaries subsidiaries to resign or persuade sever his or attempt her employment or to persuade breach an employment contract with the Company or any such Person not to subsidiary; or (iii) own, manage, advise, encourage, support, finance, operate, join, control, or participate in the ownership, management, operation, or control of or be connected in any manner with any business which is or may be in the funeral, mortuary, crematory, cemetery or burial insurance business or in any business related thereto within a customer radius of fifty (50) miles of any funeral home or cemetery business owned or operated by the Company or any of its Subsidiaries or to reduce subsidiaries at the amount time of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors termination. The foregoing covenants shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any held invalid or unenforceable because of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions territory or actions subject hereto or restricted hereby, or the period of this Section 5 time within which such covenants respectively are reasonable; (2) operative, but the burden on maximum territory, the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens action subject to breach the provisions of this Section 5 such covenants and the Company (period of time they are enforceable are subject to any determination by vote a final judgment of a majority of any court which has jurisdiction over the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits parties and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionsubject matter.

Appears in 3 contracts

Samples: Annual Report, Employment Agreement (Carriage Services Inc), Employment Agreement (Carriage Services Inc)

Restrictive Covenants. The Executive agrees that he or she (a) During the Term and for a period of one (1) year after termination of your employment hereunder you shall not, during directly or indirectly, (i) solicit, induce or cause any individual or entity with whom the Non-Compete PeriodCompany had a business relationship to reduce or terminate such Person’s business relationship with the Company or any of its affiliates or its successors or assigns; and you shall not, directly or indirectly indirectly, approach any such individual or entity for any such purpose, or authorize or assist in the taking of any of such actions for any such purpose or authorize or assist in the taking of any such actions by any individual or entity, (other than on behalf of or at the request of the Company or its Subsidiaries): (aii) engage inin any Restricted Activity, have an interest in(iii) acquire, or otherwise own in any manner, any interest in any entity that engages in any Restricted Activity, or that engages in any business, activity or enterprise that competes with any aspect of any of Restricted Activity, or (iv) be employed by interested in (whether as an owner, operatordirector, officer, partner, member, manager, employeejoint venturer, officerlender, directorshareholder, vendor, consultant, employee, advisor, agent, independent contractor or representativeotherwise), provide consulting or otherwise participate in the management services to, or permit his or her name to be used in connection with the activities operation of, any business entity that engages in any Restricted Activity or organizationin any business, engaged in a business activity or enterprise that is competitive competes with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”)Restricted Activity; provided, however, that this Section 10(a) shall not apply to the ownership of less than one five percent (15%) of the outstanding stock of any Person who has a class of securities that is publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;traded. (b) solicit During the Term and for a period of one (1) year after termination of your employment hereunder you shall not, directly or indirectly (i) hire or offer employment to or seek to hire any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer employee of the Company or any successor or affiliate thereof, unless the Company first terminates the employment of such employee or gives its Subsidiaries written consent to such employment or offer of employment, (ii) induce, solicit, persuade or encourage (or in any manner attempt to induce, solicit, persuade or encourage), or cause or authorize any other individual or entity to induce, solicit, persuade or encourage, any such Person not to be a customer employee or any other such employee of the Company or any successor or affiliate thereof, to leave the employ of its Subsidiaries his or her employer, (iii) induce, solicit, persuade or encourage (or in any manner attempt to reduce the amount of induce, solicit, persuade or encourage), or cause or authorize any other individual or entity to induce, solicit, persuade or encourage, any individual or entity to cease, diminish or not commence doing business that such customer does with the Company or any of its Subsidiaries, successor or enter into affiliate thereof or seek to enter into (iv) disparage the Company or any agreement (to the extent such agreement is of a nature that is related to successor or affiliate thereof or the business in which the Company is engaged to any individual or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orentity. (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for For purposes of this Section 5(c). (d) Notwithstanding anything to 10, the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities term “Restricted Activity” means any activity that are is competitive with (i) any aspect of the businesses business in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: is engaged (1) as operated prior to the time and geographical scope of the restrictions date of this Section 5 are reasonable; Agreement or (2) as contemplated by the burden on Company to be operated in the Executive future as of complying with the restrictions date of this Section 5 is not unreasonable; (3) Agreement, in each case, anywhere in the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of world where the Company’s eventual success on the merits and business may be conducted from time to time, or (zii) if the Executive breaches or threatens to breach the provisions of this Section 5 and any business in which the Company (by vote and/or any of a majority its affiliates are engaged or planning to be engaged in as of the members Start Date or as of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionTermination Date.

Appears in 3 contracts

Samples: Employment Agreement (SFX Entertainment, INC), Employment Agreement (SFX Entertainment, INC), Employment Agreement (SFX Entertainment, INC)

Restrictive Covenants. The Executive agrees that he During the Employee’s employment with the Employer and thereafter for the longer of but in no case to exceed 24 months, (i) the Severance Period (if severance is payable pursuant to Section 5(b)) or she (ii) 12 months after the Employee ceases, for any reason, to be an employee of the Employer, the Employee shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inindirectly, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, memberdirector, managerofficer, employee, officer, directoragent, consultant, advisor, contractor or representative)otherwise, provide consulting whether for consideration or management without consideration, for the benefit of any individual, group corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization of any other form of entity not specifically listed herein (a “Person”) other than for a member of the Employer Group, take any of the following actions: (i) compete with or otherwise engage in the sale of any products or the performance of any services which are comparable to, or permit his which are intended to substitute for, the products or her name to be used in connection with services offered by the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or Employer and/or any of its Subsidiaries engages Affiliates (a the Competitive BusinessNon-Compete Group); provided, that ownership ) in any county of less than one percent (1%) any jurisdiction in which any member of the outstanding stock Non-Compete Group maintains a branch or other office, or in any county of any publicly traded corporation shall not be deemed jurisdiction that is contiguous to be a violation such county; (ii) solicit any Business Relation (as hereinafter defined) to purchase, or sell or otherwise provide to any Business Relation, any products or services which are comparable to, or which are intended to substitute for, products or services offered by any member of this Section 5 solely by reason thereof; provided, further, that, providing investment banking the Non-Compete Group during the Employee’s employment with the Employer; (iii) accept employment with or legal provide services to a Competitive Business as an independent contractor to any Business Relation if the employment or services involve the Employee rendering services which are the same as or substantially similar to, or which are intended to substitute for, services provided by any member of the Non-Compete Group during the Employee’s employment with the Employer; (iv) employ, engage or solicit for employment or for engagement as an independent contractor or consultant, any person who was employed by or any Person who was engaged as an independent advisor contractor by any member of the Non-Compete Group during the preceding 24 months; (v) employ, engage or independent representative shall solicit for employment any employee of the Employer, whether or not be deemed such employee is a full-time employee or a temporary employee of the Employer and whether or not such employment is pursuant to be written agreement and whether or not such employment is for a violation determined period or is at will; or (vi) encourage any Person to reduce its business with any member of the Non-Compete Group or to reduce its employment with or provision of services to any member of the Non-Compete Group. Provided, however, that nothing in this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a6(a) shall be deemed waived with respect to prevent or limit the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer right of the Company or any Employee to own up to a five percent (5%) interest in the securities of its Subsidiaries or persuade or attempt to persuade any such a Person not to be a customer that are registered under Section 12 of the Company or any Securities Exchange Act of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries1934, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)amended. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 3 contracts

Samples: Employment Agreement (Shore Bancshares Inc), Employment Agreement (Shore Bancshares Inc), Employment Agreement (Shore Bancshares Inc)

Restrictive Covenants. The (a) In consideration of the Company entering into this Agreement with Executive agrees that he or she and hereby promising and committing itself to provide Executive with Confidential Information and/or specialized training after Executive executes this Agreement, Executive shall not, directly or indirectly: (i) at any time during or after the Employment Term, disclose any Confidential Information pertaining to the business of the Company, the Sponsor Group, or any of their respective Affiliates, except when required to perform his duties to the Company or one of its Affiliates, or by law or judicial process, provided that Executive gives the Company reasonable notice of any legal or judicial proceeding requiring Executive to disclose Confidential Information and an opportunity to challenge the disclosure of any such information, and Executive agrees to provide such reasonable notice in writing to: (ii) at any time during the Employment Term and for a period of twenty-four (24) months thereafter (the “Non-Compete Period”), directly or indirectly, act as a proprietor, investor, director, officer, employee, substantial stockholder, consultant, or partner in any Competing Business in Texas or any other geographic area in which Texas Energy Future Holdings Limited Partnership, the Company or any of their respective subsidiaries operates or conducts business; or (iii) at any time during the Employment Term and for a period of twenty-four (24) months thereafter, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (bA) solicit any Person who is or, within the prior twelve (12) months, was, customers or whose Affiliate is or, within the prior twelve (12) months, was a customer clients of the Company or any of its Subsidiaries Affiliates to terminate their relationship with the Company or persuade any of its Affiliates or attempt otherwise solicit such customers or clients to persuade compete with any such Person not to be a customer business of the Company or any of its Subsidiaries Affiliates, or (B) solicit or offer employment to reduce any person who is, or has been at any time during the amount twelve (12) months immediately preceding the termination of Executive’s employment, employed by the Company or any of its Affiliates; provided that in each of (ii) and (iii) above, such restrictions shall not apply with respect to any member of the Sponsor Group or any of its Affiliates that is not engaged in any business that such customer does competes, directly or indirectly, with the Company or any of its Subsidiariessubsidiaries in any geographic area where they operate. Notwithstanding the foregoing, for the purposes of this Section 8(a), (A) Executive may, directly or enter into or seek to enter into indirectly own, solely as an investment, securities of any agreement (to the extent such agreement is of a nature that is related to Person engaged in the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates that are publicly traded on a national or regional stock exchange or quotation system or on the 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, own 5% or more of any class of securities of such Person, and (B) Section 8(a)(ii) shall not be violated by reason of any exercise of tag-along rights under the Sale Participation Agreement, by and between the Company (and related parties) and Executive (the “Sale Participation Agreement”) or Drag Transaction (as an employee during defined in the immediately preceding twelve Sale Participation Agreement) that may occur after the date hereof. (12b) months Notwithstanding clause (a) above, if at any time a court holds that the restrictions stated in such clause (a) are unreasonable or attempt to persuade any Person not to continue otherwise unenforceable under circumstances then existing, the Parties hereto agree that the maximum period, scope or geographic area determined to be employed reasonable under such circumstances by such court will be substituted for the stated period, scope or retained by area. Because Executive’s services are unique and because Executive has had access to Confidential Information, the Parties hereto agree that money damages will be an inadequate remedy for any breach of this Agreement. In the event of a breach or threatened breach of this Agreement, the Company or its Affiliates successors or assigns may, in addition to terminate his other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive relief in order to enforce, or her employment prevent any violations of, the provisions hereof (without the posting of a bond or services with the Company or its Affiliates; provided, that notwithstanding other security). Notwithstanding the foregoing, general solicitations in the event Executive breaches the covenants set forth in this Section 8, the Company’s rights and remedies with respect Executive’s Options, Option Stock, and Stock and payments related thereto, as those terms are defined in the Management Stockholder’s Agreement, by and between the Company (and related parties) and Executive (the “Management Stockholder’s Agreement”) shall be limited to those set forth in Section 22(c) of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for the Management Stockholder’s Agreement. (c) For purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breachAgreement, the Company (by vote of a majority of the members of the Board) terms listed below shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies defined as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionfollows:

Appears in 3 contracts

Samples: Employment Agreement (Energy Future Holdings Corp /TX/), Employment Agreement (Energy Future Holdings Corp /TX/), Employment Agreement (Energy Future Holdings Corp /TX/)

Restrictive Covenants. 10.1 The Executive agrees that he or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation following termination of this Section 5 solely by reason thereof; providedAgreement, further, that, providing investment banking or legal services to for a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation period of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, wasthe Executive will not individually or in partnership or in conjunction with any person, association, syndicate, partnership, firm, company, corporation or whose Affiliate is orother business enterprise, within whether as principal, partner, agent, shareholder, officer, advisor, employee or in any other manner whatsoever: (a) except for the prior twelve (12) months, was a customer benefit of the Company or its subsidiaries or its affiliates, solicit any of its Subsidiaries clients or persuade or attempt to persuade any such Person not to be a customer customers of the Company or its subsidiaries with whom he has dealt in the course of being engaged in the business of the Company or its subsidiaries (as such business, as a whole, is being conducted at the time of termination); (b) carry on or engage in any business which competes directly or indirectly with the Company or its subsidiaries (as such business, as a whole, is being conducted at the time of its Subsidiaries termination); (c) offer his services to or to reduce the amount of business that such customer does participate in any way with any company, partnership or other organization which competes directly or indirectly with the Company or any of its Subsidiariessubsidiaries (as such business, or enter into or seek to enter into any agreement (to as a whole, is being conducted at the extent such agreement is time of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Persontermination); or (cd) contactsolicit or intend to solicit, approach interfere with or solicit for endeavour to procure, recruit, entice or advise the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by Company's employees away from the Company for any reason, including, but not limited to, other employment opportunities existing or its Affiliates as an employee during contemplated and within the immediately preceding twelve (12) months knowledge of the Executive. 10.2 The Executive acknowledges that he has extensive knowledge of all the services and products proposed or attempt to persuade any Person not to continue to be employed or retained by provided by, and the present customers and clients of, the Company or and its Affiliates or to terminate subsidiaries and therefore fully understands and accepts the scope of the restraints on his or her employment or services with the Company or its Affiliates; providedactivities set out above as being necessary, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation reasonable and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything fundamental to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any protection of the Mexican Subsidiaries competitive advantage of the Company engages. in its business, its trade secrets, confidential information and goodwill, while at the same time do not place undue restrictions on his ability to utilize at the conclusion of his employment, the knowledge and skills gained by him while employed by the Company. 10.3 The Executive acknowledges and agrees that: (1) the time and geographical scope that a breach by him of any of the restrictions covenants contained in paragraphs 10.1 or 10.2 of this Section 5 are reasonable; (2) Agreement would result in irreparable harm to the burden business carried on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of Company, such that the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cancould not be adequately compensated for such harm by money an award of damages. Accordingly, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if in the Executive commits event of any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such to all other remedies as may be available to the Company for at law or in equity, the Company shall be entitled as a matter of right to obtain from a Court of competent jurisdiction such breachrelief by way of restraining order, including injunction, decree or otherwise as may be appropriate to ensure compliance with the recovery provisions of money damagesparagraphs 10.1 and 10.2 of this Agreement. 10.4 The Company and the Executive acknowledge that the covenants made in section 10.1 of this Agreement are made in recognition of the Executive's specific knowledge of the Company's business and of the fact that the Company intends to carry on its business throughout the geographic area specified therein. If any of the provisions of this Section 5 are determined such covenants shall be held to be wholly unreasonable by a Court of competent jurisdiction by reason of the area, duration or partially unenforceabletype or scope of service, then said covenant shall be given effect in such reduced form as may be decided or directed by such Court. Notwithstanding the Executive hereby agrees that foregoing, if any portion of such covenant should be declared to be unenforceable or invalid for any reason whatsoever, such declaration shall be severable from this Agreement and shall not affect the enforceability or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any validity of the provisions remaining portions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictioncovenant.

Appears in 3 contracts

Samples: Employment Agreement (World Gaming PLC), Employment Agreement (World Gaming PLC), Employment Agreement (Starnet Communications International Inc/ Fa)

Restrictive Covenants. The Executive agrees that he or she During the Employee’s employment with the Bank and for a period of twelve (12) months following the termination of the Employee’s employment for any reason, the Employee shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (ai) engage inengage, have an interest inparticipate, assist or otherwise be employed by invest in any Competing Business (as hereinafter defined), regardless of whether as an owner, operator, partner, membershareholder, managerconsultant, agent, employee, officerco-venturer or otherwise; (ii) employ, directorattempt to employ, consultantrecruit or otherwise solicit, advisorinduce or influence any person (A) who is then employed by the Bank or any affiliate to leave employment with the Bank or any affiliate (other than terminations of employment of subordinate employees undertaken in the course of the Employee’s employment with the Bank) or (B) who was employed by the Bank or any affiliate within three (3) months before the Employee’s employment, recruitment or other solicitation or inducement to become employed by any other employer; or (iii) (A) solicit or encourage any Customer to terminate or otherwise modify adversely his, her or its business relationship with the Bank or any affiliate or to obtain from any provider other than the Bank (an “Other Provider”) any products that could be provided or services that could be performed by the Bank, or representative)(B) accept business from any Customer on behalf of an Other Provider. For purposes of this Agreement, provide consulting a “Customer” means a customer or management services to, client of the Bank with whom or permit his or her name to be used in connection which the Employee had business-related communications during the Employee’s employment with the activities ofBank or about whom or which the Employee learned any non-published information during the Employee’s employment. The Employee understands that the restrictions set forth in this Section 6(d) are intended to protect the Bank’s interest in its Confidential Information and established employee, customer and supplier relationships and goodwill, and agrees that such restrictions are reasonable and appropriate for this purpose. For purposes of this Agreement, the term “Competing Business” shall mean any business bank or organization, engaged in a other financial services business that is competitive with has a branch office or other place of business (other than solely an ATM) in any county in which the Company Bank has a branch office or any other place of its Subsidiaries engages (a “Competitive Business”); providedbusiness. Notwithstanding the foregoing, that ownership of less than the Employee may own up to one percent (1%) of the outstanding stock of any a publicly traded held corporation shall not be deemed to be which constitutes or is affiliated with a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Competing Business. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 3 contracts

Samples: Employment Agreement (Randolph Bancorp, Inc.), Employment Agreement (Randolph Bancorp, Inc.), Merger Agreement (Randolph Bancorp, Inc.)

Restrictive Covenants. The Executive acknowledges and recognizes the highly competitive nature of the Company’s business. Accordingly, Executive agrees that he as follows: A. That for a period of twenty-four (24) months following the termination of his employment with the Company for any reason, whether on his own behalf or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company in conjunction with any person, firm, partnership, joint venture, association, corporation or its Subsidiaries):other business, organization, entity or enterprise whatsoever (“Person”), Executive shall not directly or indirectly: (ai) engage inoperate a Competitive Business; (ii) enter into the employ of, have an or render any services to, any Person in respect of any Competitive Business; (iii) acquire a financial interest in, or otherwise be employed by (whether become actively involved with, any Competitive Business, directly or indirectly, as an owner, operatorindividual, partner, member, manager, employeeshareholder, officer, director, principal, agent, trustee or consultant; provided, advisorhowever, that in no event shall ownership of less than 2% of the outstanding capital stock of any corporation, in and of itself, be deemed a violation of this Release if such capital stock is listed on a national securities exchange or regularly traded in an over-the-counter market; or (iv) interfere with, or representative), provide consulting or management services to, or permit his or her name attempt to be used in connection with the activities ofinterfere with, any business or organization, engaged in a business that is competitive with a business in which the Company relationships between Albany or any of its Subsidiaries engages subsidiaries or affiliates and their customers, clients, suppliers or investors; and B. That for a period of twenty-four (a “Competitive Business”); provided, that ownership of less than one percent (1%24) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive months following the termination of his employment with the Company for any reason, whether on the Executive’s employment by the Companyown behalf or on behalf of or in conjunction with any person, the provisions of this Section 5(a) firm, partnership, joint venture, association, corporation or other business, organization, entity or enterprise whatsoever, Executive shall be deemed waived with respect to the Executive;not directly or indirectly: (bi) solicit or encourage any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer employee of the Company or any of its Subsidiaries subsidiaries or persuade or attempt affiliates to persuade any such Person not to be a customer leave the employment of the Company or any of its Subsidiaries subsidiaries or to reduce the amount of business that affiliates; or (ii) hire any such customer does with employee who was employed by the Company or any of its Subsidiariessubsidiaries or affiliates as of the date of such termination or, or enter into or seek to enter into any agreement (to if later, within the extent such agreement is of a nature six-months before the date the person was hired by Executive. Executive understands that is related to the business in which the Company or any will have the right to seek injunctive relief in the event that Executive violates this paragraph 10 because the harm caused by such violation will be irreparable and difficult to calculate in terms of its Subsidiaries engage) with, to monetary damages. For the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executiveparagraph 10, a balancing of equities will be Competitive Business is any person or entity that manufactures or sells (a) papermachine clothing or belts used in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach manufacture or threatens to commit any breachpaper, the Company nonwovens or fiber cement, or (by vote of a majority of the members of the Boardb) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdictionadvanced composite materials, without posting any bond structures or other security and without the necessity of proof of actual damagecomponents for use in defense, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly aerospace or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionautomotive applications.

Appears in 3 contracts

Samples: Employment Agreement (Albany International Corp /De/), General Release and Separation Agreement (Albany International Corp /De/), Employment Agreement (Albany International Corp /De/)

Restrictive Covenants. The Executive agrees (a) In further consideration of the compensation to be paid to the Employee hereunder, the Employee acknowledges that in the course of his employment with CHG and its subsidiaries he has and shall further become familiar with certain confidential and proprietary information of CHG and its subsidiaries and that his services have been and shall continue to be of special, unique and extraordinary value to CHG and its subsidiaries. Therefore, the Employee shall not at any time during the Term and for 24 months thereafter (the “Non-Compete Period”) directly or she indirectly engage in any business on behalf of any other company or himself and shall not directly or indirectly own an interest in (except for the passive ownership of less than 5% of the issued and outstanding stock of a publicly traded company), manage, operate, join, control, be employed by or participate, either directly or indirectly, in the ownership, management, operation or control of, or be connected in any manner with, any business that is a direct or indirect competitor of CHG or its subsidiaries; provided that the Employee may be employed by a company that has as an ancillary part of its overall business (constituting no more than 5% of such company’s annual revenues) operations that are competitive with CHG or its subsidiaries if the Employee does not directly or indirectly engage in such competitive activities and does not have any supervisory authority, control or oversight over any such competitive activities. For all purposes hereunder, “competitor” shall mean any company engaged in the business of medical staffing or healthcare staffing (whether local or traveling) within the United States of America or its territories or possessions (and such activities shall be referred to as “competitive activities”). (b) Unless authorized or instructed in writing by CHG, the Employee shall not, except as required in the conduct of CHG’s and its subsidiaries’ businesses (and then only on a need-to-know basis), during or at any time after the Term, disclose to any unauthorized person, or use for his own purposes, any of CHG’s or any of its subsidiaries’ inventions or discoveries or its secret or confidential information, knowledge or data (oral, written or in machine-readable form) that the Employee may obtain or have obtained during the course of or in connection with the Employee’s employment by CHG and its subsidiaries, including all such inventions, discoveries, information, knowledge or data, whether developed by the Employee, by other consultants or personnel of CHG or its subsidiaries or obtained by the Employee, CHG or such subsidiaries from unaffiliated third parties, and irrespective of whether such inventions, discoveries, information, knowledge or data have been identified by CHG or its subsidiaries as secret or confidential, unless and until, and then to the extent and only to the extent that, such inventions, discoveries, information, knowledge or data become available to the public otherwise than by the Employee’s act or omission. Notwithstanding the foregoing, the Employee shall be permitted to disclose such information to the extent required by applicable law or court order so long as the Employee: (i) notifies CHG in writing as soon as possible but in no event later than ten days prior to such disclosure, (ii) cooperates with CHG and its subsidiaries to preserve the confidentiality of such information consistent with applicable law or court order, and (iii) uses its best efforts to limit any such disclosure to the minimum disclosure necessary to comply with such law or court order. (c) During or at any time after the Term, the Employee shall not, except as required in the conduct of CHG’s and its subsidiaries’ businesses (and then only on a need-to-know basis), disclose to others, or use for his own purposes, any of the information relating to present and prospective customers of CHG or its subsidiaries, business dealings with such customers, prospective deals and advertising programs and agreements with representatives or prospective representatives of CHG or its subsidiaries, present or prospective sources of supply or any other business arrangements of CHG or its subsidiaries, including, but not limited to, customers, customer lists, costs, prices and earnings, whether such information is developed by the Employee, by others in CHG or any of its subsidiaries or obtained by CHG or any of its subsidiaries from third parties, and irrespective of whether such information has been identified by CHG or its subsidiaries as secret or confidential, unless and until, and then to the extent and only to the extent that, such information becomes available to the public otherwise than by the Employee’s act or omission. Notwithstanding the foregoing, the Employee shall be permitted to disclose such information to the extent required by applicable law or court order so long as the Employee: (i) notifies CHG in writing as soon as possible but in no event later than ten days prior to such disclosure, (ii) cooperates with CHG and its subsidiaries to preserve the confidentiality of such information consistent with applicable law or court order, and (iii) uses its best efforts to limit any such disclosure to the minimum disclosure necessary to comply with such law or court order. (d) During the Non-Compete Period, the Employee shall not directly or indirectly (other than on behalf through another entity solicit business from or service any person, firm or entity that was a customer of CHG or its subsidiaries at any time within one year preceding the request end of the Company Term (in a manner that could have the effect of such person, firm or entity reducing its business with CHG or its Subsidiaries): (a) engage insubsidiaries), have an interest ininduce or attempt to induce any such customer or any supplier or other business relation of CHG or its subsidiaries to reduce its business with CHG or such subsidiaries, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, solicit or representative), provide consulting attempt to solicit any employees of CHG or management services to, or permit his or her name its subsidiaries to be used in connection with leave the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company employ of CHG or any of its Subsidiaries engages subsidiaries or hire any such current or former employees. During the Non-Compete Period, the Employee shall also not solicit business from or service any prospective customer of CHG or its subsidiaries (in a “Competitive Business”); provided, manner that ownership of less than one percent (1%) of could have the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities effect of such individual; providedperson, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived firm or entity reducing its business with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company CHG or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for subsidiaries). For purposes of this Section 5(c6(d), a “prospective customer” shall mean a potential customer that CHG or such subsidiaries have solicited or with which CHG or its subsidiaries has had active discussions concerning potential business at any time during the one year preceding the end of the Term. (de) Notwithstanding anything The Employee agrees to disclose immediately to CHG (or any persons designated by it) and agrees that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings and works of authorship, including all writings, computer programs, software and firmware, written or created by the contrary Employee solely or jointly with others, during the course of his employment by CHG or within a period of six months from the Date of Termination of such employment, which works are made or conceived in the course of such employment, or with the use of CHG’s time, material, facilities or funds, or that relate to or are suggested by any subject matter with which the Employee’s employment by CHG may bring the Employee into contact or that relate to any investigations or obligations undertaken by or on behalf of CHG belong to CHG. The Employee further agrees that all such works that are copyrightable works are “works made for hire” under the copyright laws, of which CHG is the author and the beneficiary of all rights and protections afforded by the law of copyright in any and all countries. The Employee agrees to assist CHG without further charge during the term of his employment, and after termination of his employment at an hourly rate based on the Employee’s most recent Base Salary, through counsel designated by CHG, to execute, acknowledge and deliver all such further papers, including assignments, applications for copyright registration (in the United States or in any foreign country), oaths, disclaimers or other instruments, and to perform such further acts, including giving testimony or furnishing evidence in the prosecution or defense of appeals, interferences, suits and controversies relating to any aforesaid works, as may be deemed necessary by CHG or by its nominees to effectuate the vesting or perfecting in CHG or its nominees of all rights and interest in and to said works and copies thereof, including the exclusive rights of copying and distribution. (f) All documents, records, notes, computer software, computer programs, source codes, object codes, magnetic tapes, printouts, samples, reports, customer lists, photographs, catalogs and other writings, whether copyrightable or not, relating to or dealing with CHG’s or any subsidiary’s business and plans, and those of others entrusted to CHG or any subsidiary, that are prepared or created by the Employee or that may come into his possession during or as a result of his employment, are the property of CHG, and upon termination of his employment or such earlier time as requested by the Board, the Employee agrees to return all such matters and writings and all copies thereof (including such copies as are in electronic form) to CHG. CHG may withhold the Employee’s outstanding salary checks against return of these materials and any other materials of CHG or its customers. (g) If, at the time of enforcement of this Section 6, a court shall hold that the duration, scope or area restrictions stated in any provision of this Section 6 are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law. The Employee agrees that the restrictions contained in this Section 56 are reasonable and necessary and, with respect to since the country of Mexico, this Section 5 will only apply (and therefore will Employee has general business skills that may be limited) to activities used in industries other than that are competitive with the businesses in which any CHG conducts its business, do not impose an undue hardship on him or deprive him of his livelihood. (h) In the event of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed breach or a threatened breach by the restrictions Employee of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined 6, CHG, in addition and supplementary to be wholly other rights and remedies existing in its favor, may apply to any court of law or partially unenforceable, the Executive hereby agrees that this Agreement equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any violations of the provisions hereof (without posting a bond or other security). In addition, in the event of a breach or violation by the Employee of this Section 5 are determined to 6, the Non-Compete Period shall be wholly tolled until such breach or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionviolation has been duly cured.

Appears in 3 contracts

Samples: Employment Agreement (CHG Healthcare Services, Inc.), Employment Agreement (CHG Healthcare Services, Inc.), Employment Agreement (CHG Healthcare Services, Inc.)

Restrictive Covenants. The Executive agrees Employee acknowledges and recognizes that during the Employment Period he or she will be privy to Confidential Information and further acknowledges and recognizes that the Company would find it extremely difficult to replace the Employee. Accordingly, in consideration of the premises contained herein and the consideration to be received by the Employee hereunder (including, without limitation, the Severance Compensation), without the prior written consent of the Company, the Employee shall not, at any time during the Non-Compete Periodemployer/employee relationship between the Company and the Employee and for the period of time beginning with the termination of such employer/employee relationship for any reason (including by the Employee for Good Reason and or by the Company for Cause) and the date on which the final payment of Severance Compensation would have been made to the Employee by the Company if such termination had been a Termination Without Cause, (i) directly or indirectly (other than on behalf of engage in, represent in any way, or at be connected with, any Competing Business directly competing with the request business of the Company or its Subsidiaries): (a) engage in, have an interest in, any subsidiary or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, affiliate thereof within any business or organization, engaged in a business that is competitive with a business state in which the Company or any of its Subsidiaries engages (a “Competitive Business”); providedsuch subsidiary or affiliate transacts business, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation whether such engagement shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultantofficer, independent advisor director, owner, employee, partner, affiliate or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not other participant in any Competing Business; (ii) assist others in engaging in any Competing Business in the primary duties manner described in clause (i) above; (iii) induce or business activities of such individual; providedsolicit individuals who are, further, that, if or were at any time in the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior preceding twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer employees of the Company or any of its Subsidiaries subsidiary or persuade or attempt affiliate thereof to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does terminate their employment with the Company or any of its Subsidiariessuch subsidiary or affiliate or to engage in any Competing Business, or enter into hire, or seek induce or solicit (or assist others to enter into hire or induce or solicit) the hiring of, individuals then employed, or employed at any agreement time in the preceding twelve months, by the Company or any subsidiary thereof; or (to the extent such agreement is of a nature that is related to the business in iv) induce any entity or person with which the Company or any subsidiary or any affiliate thereof has a business relationship to terminate or alter such business relationship. As used herein, “Competing Business” shall mean any business involving the sale of its Subsidiaries engageproducts in any city or county in any state of the United States if such business or the products sold by it are competitive, directly or indirectly, at the time of the Termination of Employment with (A) withthe business of the Company, to (B) any of the Executive’s knowledgeproducts manufactured, any such Person; or (c) contact, approach sold or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained distributed by the Company or its Affiliates as an employee during the immediately preceding twelve (12C) months any products or attempt to persuade any Person not to continue to be employed business being developed or retained conducted by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Company. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 3 contracts

Samples: Employment Agreement (Berry Plastics Holding Corp), Employment Agreement (Berry Plastics Holding Corp), Employment Agreement (Berry Plastics Holding Corp)

Restrictive Covenants. The Executive In consideration of the foregoing, the Employee agrees that he or she the Employee shall not, during the Non-Compete Period, not directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage infor the Employment Period and for a period of one (1) year following the date of termination of Employee's employment by the Company, have an interest inexcept in the case of a termination without cause in which such case for a period of six (6) months (the "Noncompete Period"), directly or otherwise be employed by (whether indirectly, alone or as an owner, operator, a partner, memberjoint venturer, officer, director, manager, employee, officer, director, consultant, advisoragent, independent contractor, or representative)security holder, provide consulting of any company or management services tobusiness, engage in, be involved with, or permit his finance, or her name to be used in connection provide financial assistance with the activities ofrespect to, any business or organization, engaged in a business that is the design, development, marketing, manufacture, production, distribution or sale of any products or the provisions of any services which are the same as or competitive with a business the HF Radio products or services which the Communications Division was designing, developing, marketing, manufacturing, producing, distributing, selling or providing at the time of, or for the six month period prior to, termination of Employee's employment with the Company (the "Business") in the United States and any other country or territory in which the Communications Division was doing business at the time of, or for the six month period prior to, termination of Employee's employment with the Company or any of its Subsidiaries engages (a “Competitive Business”the "Territory"); provided, however, that the beneficial ownership of less than one five percent (15%) of the outstanding stock any class of securities of any publicly entity having a class of equity securities actively traded corporation on a national securities exchange or over-the-counter market shall not be deemed deemed, in and of itself, to be a violation violate the prohibitions of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveSection; (b) during the Noncompete Period, directly or indirectly, (i) induce any customer of the Communications Division to patronize any business which is directly or indirectly in competition with the Business conducted by the Communications Division; (ii) canvass, solicit or accept from any Person who which is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade Business conducted by the Communications Division any such Person not to be a competitive business; or (iii) request or advise any customer or other business relationship of the Company Business conducted by the Communications Division to withdraw, curtail, decrease or cancel any of its Subsidiaries or to reduce the amount of such person's business that such customer does with the Company Communications Division or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personsuccessors; orand (c) contactduring the Noncompete Period, approach directly or solicit for the purpose of offering employment to or hiring or retainingindirectly, or actually hire or retain employ any Person person who is or was employed or retained by the Company Communications Division or its Affiliates as an in any manner seek to induce any employee during of the immediately preceding twelve (12) months or attempt Communications Division to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)employment. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 3 contracts

Samples: Employment Agreement (Sunair Electronics Inc), Employment Agreement (Sunair Electronics Inc), Employment Agreement (Sunair Electronics Inc)

Restrictive Covenants. The Executive agrees that he or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inConfidentiality From the date hereof, have and during any period of the Executive’s Employment and following any termination thereof, without the prior written consent of the Board or its authorized representative, except to the extent required by law or an interest inorder of a court having jurisdiction or under subpoena from an appropriate government agency, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name in which event the Executive shall use the Executive’s best efforts to be used in connection consult with the activities ofBoard prior to responding to any such order or subpoena, and except as required in the performance of his duties hereunder, the Executive shall not disclose any business confidential or organizationproprietary trade secrets, engaged in a business that is competitive with a business in which customer lists, referral sources, drawings, designs, information regarding product development, marketing plans, sales plans, manufacturing plans, management organization information (including but not limited to data and other information relating to members of the Board, the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) subsidiaries or affiliates or to the management of the outstanding stock of Company or any publicly traded corporation shall not be deemed its subsidiaries or affiliates), operating policies or manuals, business plans, financial records, packaging design or other financial, commercial, business or technical information (a) relating to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates or attempt to persuade any such Person not to be a customer of (b) that the Company or any of its Subsidiaries subsidiaries or affiliates may receive belonging to reduce the amount of suppliers, customers, referral sources or others who do business that such customer does with the Company or any of its Subsidiariesaffiliates (collectively, or enter into or seek “Confidential Information”) to enter into any agreement (third Person unless such Confidential Information has been previously disclosed to the extent such agreement public or is in the public domain (in each case, other than by reason of a nature that is related the Executive’s breach of this Section 3(a) or the wrongful act of any other Person having any obligation of confidentiality to the business in which the Company or any of its Subsidiaries engage) with, to subsidiaries or affiliates). In the event of the termination of the Executive’s knowledgeEmployment for any reason, any such Person; or (c) contact, approach or solicit for the purpose of offering employment Executive shall deliver to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve all of (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1a) the time and geographical scope property of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection each of the Company and its Subsidiaries. The subsidiaries and affiliates and (b) the documents and data of any nature and in whatever medium of each of the Company and its subsidiaries and affiliates, and the Executive further acknowledges and agrees (x) shall not take with the Executive any such property, documents or data or any reproduction thereof, or any documents containing or pertaining to any Confidential Information other than those documents to which he is legally entitled, including, as the case may be, the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionpersonnel file.

Appears in 3 contracts

Samples: Executive Retention Agreement (Supernus Pharmaceuticals, Inc.), Executive Retention Agreement (Supernus Pharmaceuticals, Inc.), Executive Retention Agreement (Supernus Pharmaceuticals Inc)

Restrictive Covenants. The Executive agrees Unless otherwise determined by the Committee in its sole discretion, by accepting the RSUs, the Grantee acknowledges that he or she shall not, during the Non-Compete Period, directly or indirectly Grantee is bound by the following restrictive covenants (other than on behalf of or at the request of the Company or its Subsidiaries“Restrictive Covenants”): (a) engage inExcept to the extent (1) expressly authorized in writing by the Company or (2) required by law or any legal process, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection the Grantee shall not at any time during the Grantee’s Employment with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking Affiliates or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of date the ExecutiveGrantee’s employment by the CompanyEmployment terminates use, the provisions of this disseminate, disclose or divulge to any person or to any firm, corporation, association or other business entity, Confidential Information (as defined in Section 5(a20 herein) shall be deemed waived with respect to the Executive; or proprietary Trade Secrets (bas defined in Section 20 herein) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries Affiliates; (b) The Grantee shall not at any time during the Grantee’s Employment with the Company or persuade any of its Affiliates or attempt to persuade following the date the Grantee’s Employment terminates make any such Person derogatory, disparaging or negative statements, orally, written or otherwise, against the Company or any of its Affiliates or any of their respective directors, officers and employees; (c) During the Restricted Period (as defined in Section 20 herein), the Grantee shall not to be (i) become employed in any capacity by, or become an officer, employee, director, agent, consultant, shareholder or partner of, or perform any services for, or otherwise hold an interest (other than the ownership of less than 5% of the stock or other equity interests of a customer publicly traded firm or corporation) in, any Competitor (as defined in Section 20 herein) of the Company or any of its Subsidiaries Affiliates; (d) During the Restricted Period, the Grantee shall not directly or indirectly, on his or her own behalf or on behalf of any other person or entity, solicit or hire, attempt to reduce solicit or hire, or assist any other person in soliciting or hiring any employee, agent or contractor of the amount Company or any of its Affiliates or induce any employee, agent or contractor of the Company or any of its Affiliates to terminate his or her or her Employment or cease doing business that such customer does with the Company or any of its SubsidiariesAffiliates for any reason whatsoever; and (e) During the Restricted Period, the Grantee shall not directly or enter into indirectly, on his or seek to enter into her own behalf or on behalf of any agreement (to the extent such agreement is other person or entity, including any Competitor of a nature that is related to the business in which the Company or any of its Subsidiaries engageAffiliates, (1) with, to the Executive’s knowledge, engage in any such Person; or (c) contact, approach business transaction or solicit for the purpose of offering employment to relationship or hiring or retaining, or actually hire or retain perform any Person who is or was employed or retained by service sin any material way competitive with the Company or any of its Affiliates as an employee during with or for a client or prospective client of the immediately preceding twelve company or any of its Affiliates or (122) months or attempt to persuade interfere with any Person not to continue to be employed or retained by business relationship between the Company or any of its Affiliates and any client or prospective client of the Company or any of its Affiliates or induce any client or prospective client to discontinue any business relationship with the Company or any of its Affiliates or to terminate his refrain from entering into a business relationship or her employment or services transaction with the Company or any of its Affiliates; provided. The Restrictive Covenants are in addition to and do not supersede any rights the Company or any of its Affiliates may have in law or at equity or under any other agreement. By accepting the RSUs, the Grantee shall further agree that notwithstanding it is impossible to measure in money the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything damages which will accrue to the contrary Company or any of its Affiliates in this Section 5the event the Grantee breaches the Restrictive Covenants. Therefore, with respect if the Company or any of its Affiliates shall institute any action or proceeding to enforce the country provisions hereof, the Grantee shall agree to waive the claim or defense that the Company or any of Mexico, this Section 5 will only apply (its Affiliates has an adequate remedy at law and therefore will be limited) the Grantee shall agree not to activities assert in any such action or proceeding the claim or defense that are competitive with the businesses in which Company or any of its Affiliates has an adequate remedy at law. If at any time the Committee reasonably believes that the Grantee has breached any of the Mexican Subsidiaries Restrictive Covenants described in Sections 8(a) through 8(e), the Committee may suspend the vesting of Grantee’s RSUs pending a good faith determination by the Committee of whether any such Restrictive Covenant has been breached, it being understood that such suspension shall not cause the settlement to be delayed beyond the last date that settlement may occur pursuant to Section 4(b) hereof. If the Committee determines in good faith that the Grantee has breached any such Restricted Covenants, the Grantee shall immediately forfeit any outstanding unvested RSUs and shall repay to the Company, upon demand, any Common Stock or cash issued upon the settlement of the Company engagesGrantee’s RSUs if the vesting of such RSUs occurred during such breach. The Executive acknowledges Grantee shall also be required to repay to the Company, in cash and agrees that: upon demand, any proceeds resulting from the sale or other disposition (1including to the Company) the time and geographical scope of Common Stock issued upon settlement of the restrictions of this Section 5 are reasonable; (2) Grantee’s RSUs if the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiariessale or disposition was effected at any time during such breach. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination foregoing shall not be a bar to or in any way diminish prejudice the Company’s right to enforce require the Grantee to account for and pay over to the Company on a pre-tax basis any such covenant in profit obtained by the Grantee as a result of any other jurisdictiontransaction constituting a breach of the Restrictive Covenants.

Appears in 2 contracts

Samples: Performance Based Restricted Stock Unit Grant Agreement (International Seaways, Inc.), Performance Based Restricted Stock Unit Grant Agreement (International Seaways, Inc.)

Restrictive Covenants. The Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and its affiliates and accordingly agrees that he or she shall as follows: (a) During the Period of Employment, Executive will not, during the Non-Compete Period, directly or indirectly indirectly, (other than on behalf of or at i) engage in any business for Executive’s own account that competes with the request business of the Company or its Subsidiaries): affiliates (aincluding, without limitation, businesses which the Company or its affiliates have specific plans to conduct in the future and as to which Executive is aware of such planning), (ii) engage in, have an interest inenter the employ of, or otherwise be employed by render any services to, any person engaged in any business that competes with the business of the Company or its affiliates, (whether iii) acquire a financial interest in any person engaged in any business that competes with the business of the Company or its affiliates, directly or indirectly, as an owner, operatorindividual, partner, member, manager, employeeshareholder, officer, director, principal, agent, trustee or consultant, advisor, or representative. During the Period of Employment and for a period of two years thereafter (the “Restricted Period”), provide consulting Executive will not, directly or management services toindirectly, interfere with business relationships (whether formed before or permit his or her name to be used in connection with after the activities of, any business or organization, engaged in a business that is competitive with a business in which date of this Agreement) between the Company or any of its Subsidiaries engages (a “Competitive Business”); providedaffiliates and customers, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedsuppliers, furtherpartners, that, providing investment banking members or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer investors of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)affiliates. (db) Notwithstanding anything to the contrary in this Section 5Agreement, with respect to Executive may, directly or indirectly, own, solely as an investment, securities of any person engaged in the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries business of the Company engages. The or its affiliates which are publicly traded on a national or regional stock exchange or on an over-the-counter market if Executive acknowledges and agrees that: (1i) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions a controlling person of, or a member of this Section 5; a group which controls, such person and (4ii) does not, directly or indirectly, own five percent (5%) or more of any class of securities of such person. (c) During the restrictions of this Section 5 are necessary for the protection Restricted Period, Executive will not, directly or indirectly, (i) solicit or encourage any employee of the Company or its affiliates to leave the employment of the Company or its affiliates. (d) During the Restricted Period, Executive will not, directly or indirectly, solicit or encourage to cease to work with the Company or its affiliates any consultant then under contract with the Company or its affiliates. (e) It is expressly understood and its Subsidiaries. The agreed that although Executive further acknowledges and agrees (x) the Company consider the restrictions contained in this Section 13 to be reasonable, if a final determination is made by an arbitrator or court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive’s breach of , the provisions of this Section 5 will cause the Company irreparable harmAgreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, which if any arbitrator or court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens amended so as to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu ofmake it enforceable, such other remedies as may be available to finding shall not affect the Company for such breach, including the recovery enforceability of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionrestrictions contained herein.

Appears in 2 contracts

Samples: Employment Agreement (Resources Connection Inc), Employment Agreement (Resources Connection Inc)

Restrictive Covenants. The Executive (a) In the event that Xxxxxx’ employment with the Company is terminated for any reason, Xxxxxx agrees that he or she shall notthat, during the Non-Compete Periodperiod beginning on the effective date of such termination and ending on the date which is thirty (30) months after the effective date of such termination, he will not, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (ai) engage in, have an interest in, or otherwise be employed by (whether serve as an owner, operator, partner, member, manager, employee, officer, director, consultantemployee, advisorprincipal, partner, agent, contractor or consultant of or for, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities ofotherwise have a financial interest in, any business Prohibited Business (as defined in Section 7(c) below) which sells or organization, engaged offers to sell products or services in a business that is competitive competition with a business in which the Company or any of its Subsidiaries engages subsidiaries or affiliates in the Geographic Territory (a “Competitive Business”as defined in Section 7(c) below); provided, provided that ownership of less this covenant will not prevent Xxxxxx from purchasing or owning not more than one five percent (15%) of the outstanding stock any class of securities of any publicly traded corporation, whether or not such corporation shall not be deemed is a Prohibited Business; (ii) sell or offer to be sell to any Person in the Geographic Territory any goods or services of any type then sold or offered by the Company or any of its subsidiaries or affiliates; (iii) otherwise knowingly interfere with or cause a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking reduction or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by business between the Company, the provisions Company or any of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit its subsidiaries or affiliates and any Person who is or, within the prior twelve (12) months, was, customer or whose Affiliate is or, within the prior twelve (12) months, was a prospective customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates; (iv) hire or attempt to persuade hire any person employed or engaged by the Company or any of its subsidiaries or affiliates or encourage or solicit any such Person not person to terminate his or her employment or engagement with the Company or such subsidiary or affiliate of the Company; (v) knowingly interfere with or cause a reduction or termination of the business relationship between the Company or any of its subsidiaries or affiliates and any business which supplies or supplied goods or services to the Company or its subsidiaries or affiliates; or (vi) make any public statement which is either intended to be a customer or reasonably likely to be injurious or detrimental to the Company or any of its subsidiaries or affiliates or which is derogatory to any current or former director, officer or employee of the Company or any of its Subsidiaries subsidiaries or affiliates. (b) Xxxxxx acknowledges and agrees that, given the nature of the businesses in which the Company and its subsidiaries and affiliates are engaged and given his past service as President and Chief Executive Officer of the Company, the restrictive covenants contained in Section 7(a) above are reasonable in the sense that they are no greater than is necessary to reduce protect the amount legitimate interests of business the Company and not unduly harsh and oppressive in curtailing Xxxxxx’ legitimate efforts to earn a livelihood. The parties therefore intend that such customer does these restrictive covenants be enforced to the fullest extent permitted by applicable law. Each of these restrictive covenants is a separate and independent contractual provision. (c) For purpose of this Agreement, “Prohibited Business” means any Person that is in competition with the Company or any of its Subsidiaries, subsidiaries or enter into affiliates or seek to enter into that provides goods or services of any agreement (to the extent such agreement is of a nature that is related to the business in which type provided by the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach subsidiaries or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5affiliates; and (4) “Geographic Territory” means the restrictions of this Section 5 are necessary for the protection of the Company United States, Western Europe and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionIndia.

Appears in 2 contracts

Samples: Employment Agreement (Cadmus Communications Corp/New), Employment Agreement (Cadmus Communications Corp/New)

Restrictive Covenants. The Executive agrees You acknowledge and recognize the highly competitive nature of the businesses of the Company, and its subsidiaries and affiliates (collectively, the “Company Group”). For purposes of this Agreement, “affiliate” means any person or entity that he directly or she shall indirectly, through one or more intermediaries, is controlled by or is under common control with the Company. Accordingly, you agree as follows: (i) During the term of your employment with the Company Group, and for a period of one year following your termination of employment, unless such termination occurs within 12 months after a Change in Control (the “Restricted Period”), you will not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inindirectly, have an interest in, or otherwise be employed by (whether as an owneremployee, operator, partner, member, manager, employeeagent, officer, director, consultant, advisorowner, partner, shareholder or representative), provide consulting in any other individual or management services to, representative capacity: a. engage in or permit his participate in any activity that competes directly or her name indirectly with any business conducted by the Company Group on the date of your termination as to be used which you engaged or participated in connection during your employment with the activities ofCompany (including, without limitation, businesses which any business or organization, engaged in a business that is competitive with a business in which member of the Company Group has specific plans to conduct in the future and as to which you are aware of such planning); b. interfere with business relationships (whether formed before or after the date of your termination of employment) between any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) member of the outstanding stock of Company Group and any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereofthird party, including, without limitation, its customers, regulators, providers, agents, brokers and suppliers; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;or (b) c. solicit any Person who is or, within the prior twelve (12) months, was, customer or whose Affiliate is or, within the prior twelve (12) months, was a prospective customer of the Company Group with whom you had direct or any indirect contact within two years prior to the date of its Subsidiaries your termination with the Company with respect to business or persuade or attempt to persuade any such Person not to be a customer services in competition with the business of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Group. Notwithstanding anything to the contrary in this Section 5Agreement, with respect to you may, directly or indirectly, own securities of any person engaged in the country business of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries member of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 Group which are reasonable; (2) the burden publicly traded on a national or regional stock exchange or on the Executive over-the-counter market if you (A) are not a controlling person of, or a member of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; a group which controls, such person and (4B) do not, directly or indirectly, own 3% or more of any class of securities of such person. (ii) During the restrictions Restricted Period, you will not, directly or indirectly, solicit or encourage any employee of this Section 5 are necessary for the protection any member of the Company Group to leave the employment of any member of the Company Group. (iii) You acknowledge that in connection with your employment, you will have access to and its Subsidiarieswill learn information that is proprietary to, or confidential to the Company Group (collectively, “Confidential Information”). You agree that you will not purposefully at any time, directly or indirectly, use, publish, communicate, describe, disseminate, or otherwise disclose Confidential Information to any person or entity. The Executive further acknowledges term Confidential Information shall include, without limitation, all information concerning Company’s products, procedures, policies, customers, members, providers, prospects, sales, prices, financial information, technical information, network information, employee information, marketing strategies, minutes of meetings and agrees (x) the Executive’s breach terms of contracts with third parties. The provisions of this section regarding Confidential Information shall survive the termination of this Agreement indefinitely. It is expressly understood and agreed that although you and the Company consider the restrictions contained in this Section 11 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against you, the provisions of this Section 5 will cause the Company irreparable harmAgreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, which if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens amended so as to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu ofmake it enforceable, such other remedies as may be available to finding shall not affect the Company for such breach, including the recovery enforceability of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionrestrictions contained herein.

Appears in 2 contracts

Samples: Employment Agreement (Universal American Corp.), Employment Agreement (Universal American Corp.)

Restrictive Covenants. The Executive agrees that he (a) During the term of employment or she consultancy and for a period of one (1) year after the termination thereof (which the Company may elect to extend in accordance with the Management Member’s consulting or employment agreement, if applicable) (the “Non-Competition Period”), each Management Member shall not, during without the Non-Compete Period, directly or indirectly (other than on behalf of or at the request prior written consent of the Company or its Subsidiaries): (a) engage inCompany, have an interest in, or otherwise be employed by (and whether as an owneremployee, operatorprincipal, agent, shareholder, partner, member, manager, employee, officer, director, consultant, advisor, limited liability company manager or representativemember, director, or otherwise, directly or indirectly, compete with the Company or any subsidiary of the Company in the business of manufacturing solar panel encapsulant or providing consumer product quality assurance services to third parties, (the “Restricted Business”). The making or guarantying of a loan, provide consulting lease or management services any other financial arrangement to, with, or for any person or entity that engages in a Restricted Business shall be deemed a breach of this covenant. However, such Management Member may purchase or own up to 1% of the outstanding stock of a publicly traded corporation that competes with the Company or any Subsidiary, but such Management Member may not be employed by or otherwise participate in the activities of such corporation. (b) During the Non-Competition Period, such Management Member will not, and will not permit any of his or her name to be used in connection with the activities ofaffiliates to, directly or indirectly, (i) recruit or otherwise solicit or induce any business employee, customer, subscriber or organization, engaged in a business that is competitive with a business in which supplier of the Company or any of its Subsidiaries engages to terminate its employment or arrangement with the Company or any of its Subsidiaries, otherwise change its relationship with the Company or any of its Subsidiaries or establish any relationship with such Management Member or any of his or her affiliates to compete in the Restricted Business or (a “Competitive Business”); provided, that ownership of less than one percent (1%ii) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by without the Company’s prior written consent, the provisions of this Section 5(ahire (A) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer employee of the Company or any of its Subsidiaries or persuade or attempt to persuade (B) any such Person not to be a customer of person whose employment with the Company or any such Subsidiary is terminated by such person without Good Reason during the six-month period ending on the date of its Subsidiaries or such hire; provided, that with respect to reduce the amount former employees of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the ExecutiveCompany’s knowledge, any such Person; orconsent shall not be unreasonably withheld. (c) contactThe parties hereto agree that, approach or solicit for the purpose if any court of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published competent jurisdiction in a journalfinal nonappealable judgment determines that a specified time period, newspaper a specified geographical area, a specified business limitation or any other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes relevant feature of this Section 5(c)7.08 is unreasonable, arbitrary or against public policy, then a lesser time period, geographical area, business limitation or other relevant feature which is determined to be reasonable, not arbitrary and not against public policy may be enforced against the applicable party. (d) Notwithstanding anything to In the contrary in event of a conflict between this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 7.08 and the Company (by vote terms of a majority Management Member’s employment or consulting agreement the terms of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches such employment or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) consulting agreement shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictioncontrolling.

Appears in 2 contracts

Samples: Limited Liability Company Agreement (STR Holdings LLC), Limited Liability Company Agreement (STR Holdings (New) LLC)

Restrictive Covenants. The In consideration of his employment and the other benefits arising under this Agreement, the Executive agrees that he or she shall not, during the Non-Compete Employment Period, and for eighteen (18) months following the termination of this Agreement, the Executive (or any affiliate) shall not directly or indirectly indirectly: (other than on behalf a) directly or indirectly, own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be employed or retained by, render services to, provide financing (equity or debt) or advice to, or otherwise be connected in any manner with any business located within five (5) miles of any current or at future store of the request Company, that sells or provides products or services sold or provided by the Company including, without limitation, the ownership, management or operation of any (i) natural and/or organic grocery stores or markets or (ii) electronic cigarettes; or (b) for any reason, (i) induce any material customer or supplier of the Company or any of its Subsidiaries): (a) engage in, have an interest in, subsidiaries or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, affiliates to patronize or representative), provide consulting do business with any business directly or management services to, or permit his or her name to be used indirectly in connection competition with the activities of, businesses conducted by the Company or any business of its subsidiaries or organization, engaged affiliates in a business that is competitive with a business any market in which the Company or any of its Subsidiaries engages subsidiaries or affiliates does business; (a “Competitive Business”); providedii) canvass, that ownership of less than one percent (1%) of the outstanding stock of solicit or accept from any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking material customer or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer supplier of the Company or any of its Subsidiaries subsidiaries or persuade or attempt to persuade affiliates any such Person not competitive business; or (iii) request or advise any material customer, supplier or other provider of services to be a customer of the Company or any of its Subsidiaries subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer’s, supplier’s or provider’s business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by his, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engage) with, to subsidiaries or affiliates at or within the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: prior one (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harmyear, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right manner seek to enforce induce any such covenant in any other jurisdictionperson to leave his or his employment.

Appears in 2 contracts

Samples: Employment Agreement (Healthier Choices Management Corp.), Employment Agreement (Vapor Corp.)

Restrictive Covenants. The Executive agrees that he or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inExecutive hereby agrees that during the term of his employment with the Company and for a period of six months thereafter (the "Restriction Period"), have an interest inthe Executive will not, singly, jointly, or otherwise be employed by (whether as an owner, operator, a partner, member, managerconsultant, employeeor agent of any partnership, officer, directoror as an agent, consultant, advisoror stockholder of any other corporation or entity, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any as an investor of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less more than one five percent (15%) of the outstanding voting stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedentity, furtheror in any other capacity, thatdirectly, providing investment banking indirectly or legal services to a Competitive Business otherwise beneficially: (i) Own, manage, operate, join in, control or participate in the ownership, management, operation, or control of, or work for (as an independent employee, consultant, independent advisor contractor or independent representative shall not otherwise), or permit the use of his name by, or provide financial, sales, marketing or other assistance to, or be deemed connected in any manner with, any of the following (each a "Competitive Business"): (1) any retailer located anywhere in the Restricted Area (as herinafter defined) which generates thirty-five percent (35%) or more of its gross revenues from the sale, anywhere in the Restricted Area, of greeting cards, party goods, gift wrap accessories, stationery and/or any other products or services which materially reproduce, incorporate or copy any of the products or services which are offered or developed for marketing by the Company during the term of the Employee's employment with the Company ("Competitive Products") or which offers greeting cards for sale in the Restricted Area under a "one price" strategy at a price per card of $.49 or less or under a "half-off" strategy at a price per card of 2/$1.00 or less, or (2) any retailer which generates thirty-five percent (35%) or more of its gross revenue from the sale of Competitive Products anywhere in the restricted Area; (ii) Induce or attempt to be a violation induce any person who, during the term of this Section 5 solely by reason thereof so long as providing such services Executive's employment with the Company, is not an employee, representative, consultant, agent or supplier of the primary duties Company, to terminate his, her or business activities its employment or relationship with the Company or to violate the terms of such individual; providedany agreement between said representative, furtheragent, thatconsultant, if employee or supplier and the Board determines that Company, or hire or attempt to hire any employee of the provisions Company who has left the employment of this Section 5(athe Company within sixty (60) should not apply to the Executive following days after the termination of the Executive’s such employee's employment by with the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;; or (biii) solicit Induce or attempt to induce any Person who person, business or entity which is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company at any time during the term preceding the effective date of this Agreement to terminate any written or oral agreement or understanding with the Corporation or to become a customer of any person, corporation, partnership or other entity which engages in any Competitive business. (b) For purposes of Section 3(a) hereof, "Restricted Area" means the United States (and any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiariesterritories), or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation Canada and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Mexico. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 2 contracts

Samples: Separation Agreement (Factory Card Outlet Corp), Separation Agreement (Factory Card Outlet Corp)

Restrictive Covenants. The Executive Recognizing the Buyer’s need to protect the goodwill of the Business being purchased and to induce the Buyer to purchase the Business and the Purchased Shares, each of the Majority Shareholders covenants and agrees that he or she shall notwith the Buyer that, during if the Non-Compete Periodtransactions contemplated hereby are closed, no Majority Shareholder will directly or indirectly (other than on behalf including through an Affiliate of or at any Majority Shareholder) and shall cause its Affiliates to not, for the request of the Company or its SubsidiariesRestraint Period (as defined below): (a) engage in, have an interest in, or otherwise be employed by within the Restraint Area (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representativedefined below), provide consulting or management services to, or permit his or her name to be used in connection compete with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or the Buyer with respect to the Business as presently or previously conducted by any Company; provided that such Majority Shareholder shall not be deemed in breach of this Section 9.1(a) for its Subsidiaries engages (a “Competitive Business”); provided, that passive ownership of less than up to one percent (11.0%) of the outstanding stock equity securities of any publicly a publicly-traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executivecompany; (b) solicit any Person who is orsolicit, within the prior twelve (12) months, wasdivert, or whose Affiliate is ortake away or attempt to solicit, within divert or take away from the prior twelve (12) monthsBuyer or its Affiliates, for the benefit of any other Person, any customer of the Buyer or its Affiliates that was a customer of the any Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer as of the Company Closing Date or at any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement time within two (2) years prior to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orClosing Date; (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates (whether as an employee during or independent contractor) any employee or full-time independent contractor of the immediately preceding twelve (12) months Business, or attempt to persuade encourage any Person not to continue to be employed such employee or retained by the Company or its Affiliates or full-time independent contractor to terminate his or her employment or services relationship with the Company Business; (d) induce or attempt to induce any customer, supplier, licensee, licensor, franchisee or other business relation of the Business to cease doing business with the Business, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Business (including making any negative statements or communications about the Buyer or any of its Affiliates including the Companies); or (e) divert or attempt to divert any or all of the Buyer’s or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published ’ customers’ or suppliers’ business with such Person from such Person in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes violation of this Section 5(cAgreement or applicable Law (including the violation of any trade secrets law). (df) Notwithstanding anything to As used herein the contrary term “compete” shall include engaging in this Section 5competition, with respect to whether by the sale of products or services, directly or indirectly, as a proprietor, principal, agent, representative, employee, consultant, partner, or equityholder. (g) As used herein, the term “Restraint Area” means the United States, its territories and any other territory or country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of where the Company engages. The Executive acknowledges and agrees that: (1) conducts or has conducted business in the time and geographical scope of the restrictions of this Section 5 are reasonable; two (2) years preceding the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed Closing Date, as evidenced by the restrictions Companies’ records. For the avoidance of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breachdoubt, the Company (by vote of Parties hereby acknowledge and agree that the Buyer has a majority of substantial and legitimate business interest throughout the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionRestraint Area.

Appears in 2 contracts

Samples: Stock Purchase Agreement (Urban-Gro, Inc.), Stock Purchase Agreement (Urban-Gro, Inc.)

Restrictive Covenants. The Executive agrees that he or she (a) During the Restricted Period, Seller shall not, during the Non-Compete Periodand shall cause its Affiliates not to, directly or indirectly (indirectly, either alone or in conjunction with any other than on behalf of or at the request of the Company or its Subsidiaries):Person: (ai) engage inin or assist others in engaging in any Competitive Business anywhere in the Restricted Geography, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisoradviser, board member, owner, lender, guarantor (or other accommodation party) or investor; (ii) sell, market, provide, attempt to sell, market or provide, or representative), provide consulting assist any person or management services to, entity in the sale or permit his or her name to be used in connection with the activities provision of, any business or organization, engaged Competitive Product to any Restricted Customers; or (iii) intentionally interfere in a business that is competitive any material respect with a business in which the Company or relationship between Purchaser and any of its Subsidiaries engages (customers, suppliers, distributors or other business relations relating in any way to the Business or a Competitive Business”)Product; provided, however, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation it shall not be deemed to be a violation of this Section 5 solely by reason thereof7.10(a) for Seller to, directly or indirectly: (i) invest in or own any publicly-traded non-convertible debt securities of any Person; provided(ii) invest in or own up to three percent (3%) of any class of securities which are publicly traded or listed on any securities exchange or automated quotation system; or (iii) own any interests in any mutual or other investment fund registered with the Securities and Exchange Commission under the Investment Company Act of 1940, furtheras amended. Purchaser acknowledges that Seller engages in Seller’s Other Businesses and, thatnotwithstanding anything herein to the contrary, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative Purchaser agrees that Seller shall not be deemed to be a violation in breach of any provision of this Section 5 7.10(a) solely as a result of Seller continuing to engage in Seller’s Other Businesses as conducted as of the Closing Date. Notwithstanding the foregoing and anything herein to the contrary, this Section 7.10(a) (i) shall not apply in connection with, and following, a Seller Change of Control and (ii) in the event of an acquisition of the stock, business or assets of Seller and/or any of its Affiliates (by reason thereof so long as providing such services asset purchase, stock purchase, merger, consolidation or otherwise) by any Person who is not the primary duties or business activities a current Affiliate of such individual; providedSeller, further, that, if the Board determines that the provisions of this Section 5(a7.10(a) should not shall neither prohibit nor apply to the Executive following the termination business of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect such Person as conducted prior to the Executive;such acquisition. (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive Seller acknowledges and agrees that: (1) that the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary remedy at law for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s any breach or threatened breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to 7.10 may be wholly or partially unenforceableinadequate and, the Executive hereby accordingly, Seller covenants and agrees that this Agreement Purchaser shall, in addition to any other rights and remedies which Purchaser may have at law, be entitled to seek equitable relief, including injunctive relief, and to seek the remedy of specific performance with respect to any breach or any provision hereof threatened breach of such covenant, as may be reformed so available from any court of competent jurisdiction. In addition, Seller and Purchaser agree that it is enforceable the terms of the covenants in this Section 7.10 are reasonable and properly required for the protection of Purchaser and the goodwill and other intangible assets being acquired by Purchaser pursuant to the maximum extent permitted by lawthis Agreement. If If, at any time of enforcement of any of the provisions of this Section 5 are determined 7.10, a court of competent jurisdiction holds that any particular provision or portion of this Section 7.10 is invalid and unenforceable, the Parties agree that this Section 7.10 shall be deemed amended to delete therefrom such provision or portion held to be wholly invalid or partially unenforceable in any jurisdictionunenforceable, such determination shall not be a bar amendment to or apply only with respect to the operation of this Section 7.10 in any way diminish the Company’s right to enforce any particular jurisdiction in which such covenant in any other jurisdictionadjudication was made.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Neophotonics Corp), Asset Purchase Agreement (Emcore Corp)

Restrictive Covenants. The Executive agrees 16.1 Each of the Founders covenants separately with each of the Investors and separately with the Company that he (whether alone or she jointly with, any other person, firm or company and whether directly or indirectly, and whether as shareholder, participator, partner, promoter, director, officer, agent, manager, employee or consultant of, in or to any other person, firm or company) shall not, not during the Non-Compete Period, directly or indirectly Relevant Periods (other than on behalf of or at the request of the Company or its Subsidiariesas set out in Clause 16.3): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection compete with the activities of, any business or organization, engaged in a business that is competitive with a business in which Business of the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) other member of the outstanding stock of Group as shall be undertaken by the Company and/or any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination other member of the Executive’s employment by Group at the CompanyRelevant Date (as set out in Clause 16.2), or in the provisions of this Section 5(a) shall be deemed waived with respect to the Executive12 months preceding that date; (b) solicit or endeavour to entice away from or discourage from dealing with the Company and/or any Person other member of the Group any person who was at any time during the period of one year preceding the Relevant Date a manufacturer for or supplier or Customer or client of the Company and/or any other member of the Group, for the purposes of any business competing with the Business of the Company; (c) supply or provide any goods or services competing with those supplied by the Company and/or any other member of the Group to any person who was at any time during the period of one year preceding the Relevant Date a Customer or client of the Company and/or any other member of the Group to whom the Company and/or any other member of the Group had during that period supplied or provided goods or services in the ordinary course of its business; (d) solicit or endeavour to entice, away from or discourage from being employed by or providing services to the Company and/or any other member of the Group any person who was at the Relevant Date, or was at any time during the period of one year prior thereto, an officer or employee of the Company and/or any other member of the Group whether or not such person would commit a breach of contract by reason of leaving service; (e) employ or engage or attempt to employ or engage or negotiate or arrange the employment or engagement by any other person, firm or company engaged in a business competitive with the Business of the Company and/or any other member of the Group at the Relevant Date, of any person who was at the Relevant Date, or was at any time during the period of one year prior thereto, an officer or Employee Covenantor of the Company and/or any other member of the Group whether or not such person would commit a breach of contract by reason of leaving service; (f) without the consent in writing of the Company and save in the proper course of his duties to the Company, divulge to any person, or use for his own benefit or the benefit of any person, any information of a confidential nature concerning the Business of the Company or the Group or any customer and/or client of the Company or the Group which has come to his knowledge during the course of his employment with or the provision of services to the Company or the Group previously or otherwise. Confidential information for this purpose includes but is not limited to strategic plans, accounts, marketing, sales and services information regarding the business and/or activities of the Company including, but not limited to, research, products, plans, services, customers, resellers, agents, teaming partners, members, markets, software, source code, databases, inventions, hardware, processes, designs, marketing, financial or other information; or (g) use or (insofar as he can reasonably do) allow to be used (other than by the Company or any member of the Group) the name ‘Globoforce’ or ‘Globogift’ or any derivation thereof or any trade or corporate name used by the Company or any member of the Group or any other name intended or likely to be confused therewith or, within in any other way, represent himself as being in any way connected with or interested in the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer Business of the Company or any member of its Subsidiaries or persuade or attempt to persuade any such Person not to be the Group (save that for so long as a customer Covenantor is a Shareholder of the Company or any of its Subsidiaries or he shall be entitled to reduce the amount of business inform third parties that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement he is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection member of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach save that for so long as a Covenantor is a Director of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) he shall be entitled to temporary and permanent injunctive relief from inform third parties that he is a court Director of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including and save further that in the recovery case of money damages. If Mr Xxxxxx Xxxxxxxx he shall be entitled at any time while he is chairman of the Company to inform third parties that he is a chairman and a founder of the Company and following his ceasing to or be chairman of the Company to inform third parties that he was a founder and a chairman of the Company) PROVIDED THAT the restrictions set out above shall not prohibit the acquisition or holding by any of the provisions Covenantors of shares amounting to less than five per cent of the share capital of a company whose shares are listed on a recognised stock exchange. 16.2 For the purposes of this Section 5 are determined to be wholly or partially unenforceable, Clause 16 the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any “Relevant Date” means in respect of the provisions application of this Section 5 are determined Clause 16.1 to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar those Covenantors to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionwhich that clause applies:

Appears in 2 contracts

Samples: Subscription and Shareholders’ Agreement (Globoforce LTD), Subscription and Shareholders’ Agreement (Globoforce LTD)

Restrictive Covenants. The Executive (a) In consideration of the Award, Grantee agrees that he or she shall not, during the Non-Compete period beginning with termination of employment and ending with the third anniversary of the Date of Grant (“Restricted Period”), Grantee shall not for any reason, directly or indirectly (other than on behalf of or at indirectly, without the request prior written consent of the Company Corporation or its Subsidiaries): delegatee: (ai) engage inbecome employed, have an interest inengaged or involved with a competitor (defined below) of the Corporation or any Subsidiary in a position that involves: providing services that relate to or are similar in nature or purpose to the services performed by the Grantee for the Corporation or any Subsidiary at any time during his or her previous three years of employment with the Corporation or any Subsidiary; or, supervision, management, direction or otherwise be employed by (whether advice regarding such services; either as an ownerprincipal, operator, partner, memberagent, manager, employee, officerpartner, shareholder, director, consultantofficer or consultant (other than as a less-than three percent (3%) equity owner of any corporation traded on any national, advisorinternational or regional stock exchange or in the over-the-counter market); or, (ii) induce or attempt to induce any customer, client, supplier, employee, agent or independent contractor of the Corporation or any of the Subsidiaries to reduce, terminate, restrict or otherwise alter (to the Corporation’s detriment) its business relationship with the Corporation. (b) The noncompetition obligations of clause (i) of the preceding sentence shall be effective only with respect to a “competitor” of the Corporation or any Subsidiary which is understood to mean any person or entity in competition with the Corporation or any Subsidiary, and more particularly those persons and entities in the businesses of: production, transmission, distribution, or representative)retail or wholesale marketing or selling of electricity; resale or arranging for the purchase or for the resale, provide consulting or management services tobrokering, marketing, or permit his trading of electricity or her name to be used in connection with derivatives thereof; energy management and the activities ofprovision of energy solutions; development and operation of power generation facilities, and sales and marketing of electric power, domestically and abroad; and any business or organization, engaged in a business that is competitive with a other business in which the Company or Corporation, including Subsidiaries, is engaged at the termination of Grantee’s continuous employment by the Corporation, including Subsidiaries; and within the following geographical areas: (i) any country in the world (other than the United States) where the Corporation, including Subsidiaries, has at least $25 million in capital deployed as of termination of Grantee’s continuous employment by Corporation, including through its Subsidiaries engages Subsidiaries; (a “Competitive Business”); providedii) the states of California, that ownership Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Minnesota, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Vermont, Wisconsin and Wyoming (iii) any other state in the United States where the Corporation including the Subsidiaries, has at least $25 million in capital deployed as of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the ExecutiveGrantee’s employment by with the CompanyCorporation or any Subsidiary. The Corporation and Grantee intend the above restrictions on competition in geographical areas to be entirely severable and independent, the provisions and any invalidity or enforceability of this Section 5(a) shall be deemed waived provision with respect to the Executive; (b) solicit any Person who is orone or more of such restrictions, within the prior twelve (12) monthsincluding geographical areas, was, shall not render this provision unenforceable as applied to any one or whose Affiliate is or, within the prior twelve (12) months, was a customer more of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiariesother restrictions, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orincluding geographical areas. (c) contactGrantee agrees not to: (i) disclose to any third party or otherwise misappropriate any confidential or proprietary information of the Corporation or of any Subsidiary (except as required by subpoena or other legal process, approach in which event the Grantee will give the Chief Legal Officer of the Corporation prompt notice of such subpoena or solicit for other legal process in order to permit the purpose Corporation or any affected individual to seek appropriate protective orders); or, (ii) publish or provide any oral or written statements about the Corporation or any Subsidiary, any of offering employment to the Corporation’s or hiring any Subsidiary’s current or retainingformer officers, executives, directors, employees, agents or representatives that are false, disparaging or defamatory, or actually hire that disclose private or retain any Person who is confidential information about their business or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes personal affairs. The obligations of this Section 5(c)paragraph are in addition to, and do not replace, eliminate, or reduce in any way, all other contractual, statutory, or common law obligations Grantee may have to protect the Corporation’s confidential information and trade secrets and to avoid defamation or business disparagement. (d) Notwithstanding anything any other provision of Section 3, the Grantee remains free to report or otherwise communicate any nuclear safety concern, any workplace safety concern, or any public safety concern to the Nuclear Regulatory Commission, United States Department of Labor, or any other appropriate governmental agency without providing the notice described in Section 3(c), and the Grantee remains free to participate in any governmental proceeding or investigation without providing the notice described in Section 3(c). (e) If any part of this Section is held to be unenforceable because of the duration, scope or geographical area covered, the Corporation and Grantee agree to modify such part, or that the court making such holding shall have the power to modify such part, to reduce its duration, scope or geographical area. (f) Nothing in Section 3 shall be construed to prohibit Grantee from being retained during the Restricted Period in a capacity as an attorney licensed to practice law, or to restrict Grantee from providing advice and counsel in such capacity, in any jurisdiction where such prohibition or restriction is contrary to law. (g) Grantee’s agreement to the restrictions provided for in this Agreement and the Corporation’s agreement to provide the Award are mutually dependent consideration. Therefore, notwithstanding any other provision to the contrary in this Section 5Agreement, with respect if the enforceability of any material restriction on Grantee provided for in this Agreement is challenged and found unenforceable by a court of law then the Corporation shall, at its election, have the right to recover from Grantee the Award, or the Award’s fair market value received by Grantee on the date of sale, transfer, or other disposition if Grantee has sold, transferred, or otherwise disposed of the Award. This provision shall be construed as a return of consideration or ill-gotten gains due to the country failure of MexicoGrantee’s promises under the Agreement, this Section 5 will only apply and not as a liquidated damages clause. Nothing herein shall (and therefore will be limitedi) reduce or eliminate the Corporation’s right to activities assert that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions provided for in this agreement are fully enforceable as written, or as modified by a court pursuant to Section 3, or (ii) eliminate, reduce, or compromise the application of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches temporary or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from as a court fully appropriate and applicable remedy to enforce the restrictions provided for in Section 3 (inclusive of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damageits subparts), in addition to, and not in lieu of, such to recovery of damages or other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted otherwise allowed by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction.

Appears in 2 contracts

Samples: Restricted Stock Unit Award Agreement (Duke Energy CORP), Performance Award Agreement (Duke Energy CORP)

Restrictive Covenants. The Executive agrees that he (a) During the term of employment or she consultancy and for a period of one (1) year after the termination thereof (which the Company may elect to extend in accordance with the Management Member’s consulting or employment agreement, if applicable) (the “Non-Competition Period”), each Management Member shall not, during without the Non-Compete Period, directly or indirectly (other than on behalf of or at the request prior written consent of the Company or its Subsidiaries): (a) engage inCompany, have an interest in, or otherwise be employed by (and whether as an owneremployee, operatorprincipal, agent, shareholder, partner, member, manager, employee, officer, director, consultant, advisor, limited liability company manager or representativemember, director, or otherwise, directly or indirectly, compete with the Company or any subsidiary of the Company in the business of manufacturing solar panel encapsulant or providing consumer product quality assurance services to third parties, (the “Restricted Business”). The making or guarantying of a loan, provide consulting lease or management services any other financial arrangement to, with, or for any person or entity that engages in a Restricted Business shall be deemed a breach of this covenant. However, such Management Member may purchase or own up to 1% of the outstanding stock of a publicly traded corporation that competes with the Company or any Subsidiary, but such Management Member may not be employed by or otherwise participate in the activities of such corporation. (b) During the Non-Competition Period, such Management Member will not, and will not permit any of his or her name to be used in connection with the activities ofaffiliates to, directly or indirectly, (i) recruit or otherwise solicit or induce any business employee, customer, subscriber or organization, engaged in a business that is competitive with a business in which supplier of the Company or any of its Subsidiaries engages to terminate its employment or arrangement with the Company or any of its Subsidiaries, otherwise change its relationship with the Company or any of its Subsidiaries or establish any relationship with such Management Member or any of his or her affiliates to compete in the Restricted Business or (a “Competitive Business”); provided, that ownership of less than one percent (1%ii) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by without the Company’s prior written consent, the provisions of this Section 5(ahire (A) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer employee of the Company or any of its Subsidiaries or persuade or attempt to persuade (B) any such Person not to be a customer of person whose employment with the Company or any such Subsidiary is terminated by such person without Good Reason during the six-month period ending on the date of its Subsidiaries or such hire; provided, that with respect to reduce the amount former employees of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the ExecutiveCompany’s knowledge, any such Person; orconsent shall not be unreasonably withheld. (c) contactThe parties hereto agree that, approach or solicit for the purpose if any court of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published competent jurisdiction in a journalfinal nonappealable judgment determines that a specified time period, newspaper a specified geographical area, a specified business limitation or any other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes relevant feature of this Section 5(c)6.07 is unreasonable, arbitrary or against public policy, then a lesser time period, geographical area, business limitation or other relevant feature which is determined to be reasonable, not arbitrary and not against public policy may be enforced against the applicable party. (d) Notwithstanding anything to In the contrary in event of a conflict between this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 6.07 and the Company (by vote terms of a majority Management Member’s employment or consulting agreement the terms of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches such employment or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) consulting agreement shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictioncontrolling.

Appears in 2 contracts

Samples: Limited Liability Company Agreement (STR Holdings (New) LLC), Limited Liability Company Agreement (STR Holdings, Inc.)

Restrictive Covenants. The Executive (a) Except as otherwise provided herein or as otherwise consented to in writing by the Company, each Non-Manager Member and each owner of any such Non-Manager Member agrees that he that, so long as such Non-Manager Member remains a Member of the Company and for a period of two (2) years immediately following the date on which such Non-Manager Member ceases to be a Member, such Non-Manager Member and such Non-Manager Member’s Affiliates (including, for the avoidance of doubt, any portfolio company controlled by any such Non-Manager Member or she its Affiliates) shall not, during the Non-Compete Period, directly or indirectly indirectly: (i) Solicit or attempt to entice away the employment of any Company Employee or other than on behalf of or at the request service provider of the Company or any of its Subsidiaries): (a) engage in, have an interest inAffiliates, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, any licensed professional or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in professional entity for which the Company or any of its Subsidiaries engages Affiliates provide services (a each, an Competitive BusinessAssociated PC”); provided, other than help wanted advertisements or recruitment efforts by any recruitment agency that ownership are not specifically targeted at employees or contract workers of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, any of its Affiliates or any Associated PC, nor hire any such employee or individual who was an employee or contract worker of the provisions Company, any of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit its Affiliates or any Person who is or, within Associated PC at any time during the prior twelve (12) months, wasother than any individual who responds to such general solicitation or who has been terminated by the Company, any of its Affiliates or any Associated PC; (ii) Solicit any Person who is a customer, client or patient of the Company, any of its Affiliates or any Associated PC to cease doing business with the Company, any of its Affiliates or any Associated PC, or whose Affiliate with respect to the provision services by a Competing Business; (iii) Unless such interference is orrequired by applicable Law, within interfere with any business relationship between the prior twelve Company, any of its Affiliates or any Associated PC, on the one hand, and any of their respective customers, clients, patients, vendors, suppliers or other Persons having a business relationship therewith, on the other hand. (12iv) monthsMake, was a customer publish or communicate to any Person or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company, any of the Company its Affiliates, any Associated PC or any of their businesses; provided, that this Section 7.6(a)(iv) does not, in any way, restrict or impede any Member from exercising protected rights to the extent that such rights cannot be waived by agreement or from responding truthfully and in good faith upon demand pursuant to any investigation or inquiry by a governmental authority or as required by applicable Law, subpoena, court order or other compulsory legal process, or in enforcing or defending such Member’s rights. Notwithstanding the foregoing, in no event does the Company, any of its Subsidiaries or persuade or attempt to persuade Affiliates, any such Person not to be a customer of the Company Associated PC or any of its Subsidiaries their respective businesses waive any claims or to reduce the amount causes of business that such customer does action it may have under applicable Law in connection with the Company making of such disparaging or defamatory statements by any of its SubsidiariesMember; (v) Engage in (whether as an owner, proprietor, general or limited partner, member, principal, officer, employee, consultant, director, investor, agent or otherwise), or enter into be employed or seek to enter into contracted by, any agreement (to the extent such agreement is of a nature that is related to the business Competing Business in any state in which the Company does or any of its Subsidiaries engage) with, intends to the Executive’s knowledge, any conduct business (whether or not compensated for such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliatesservices); provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary restriction in this Section 5, with respect 7.6(a)(v) shall not apply to the country any Member’s passive ownership of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; any interests in any exchange traded fund or mutual fund or (2) less than five percent (5%) of the burden securities in any publicly traded company or lending money to any such publicly traded company; nor (vi) Except on behalf of the Executive of complying with Company, use or operate any enterprise under the restrictions of name “SmileDirectClub,” “SDC Financial” or any variants thereof; provided, that nothing in this Section 5 is 7.6 shall, except as hereinafter set forth, restrict any portfolio company that the Pre-IPO Members or their respective Affiliates does not unreasonablecontrol (each, a “Portfolio Company”) from engaging in any activity, including a Competing Business; (3) provided, further, that the general public policy is Pre-IPO Members shall not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach provide any of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damagestheir respective Portfolio Companies with any Confidential Information, (y) if the Executive breaches or threatens cause any of their respective Portfolio Companies to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 7.6, or (z) in the event it has notice of and the power or authority to prevent a Portfolio Company from engaging in such action, fail to prevent a Portfolio Company from taking any of the actions set forth in this Section 7.6(a). (b) Each Non-Manager Member, subject to this Section 7.6, hereby expressly acknowledges and agrees that the geographic boundaries, scope of prohibited activities, and time duration set forth in this Section 7.6, as applicable to such Person, are determined reasonable and are no broader than are necessary to protect the legitimate business interests of the Company. Each Non-Manager Member acknowledges that its obligations under this Section 7.6 are reasonable in the context of the nature of the Company Business and the competitive injuries likely to be wholly or partially unenforceable, sustained by the Executive hereby agrees Company if any Non-Manager Member were to violate such obligations. Each Non-Manager Member further acknowledges that this Agreement or is made in consideration of, and is adequately supported by the agreement of the Company to perform its obligations under this Agreement and by other consideration, which each Non-Manager Member acknowledges constitutes good, valuable and sufficient consideration. (c) If any provision hereof may or clause of this Section 7.6 is found to be reformed so in conflict with a mandatory provision of applicable Law, each Non-Manager Member agrees the conflicting provision shall be modified to conform. Each Non-Manager Member covenants and agrees that it is should any provision of this Section 7.6, under any circumstances, foreseen or unforeseen, including term periods and geographic areas, be deemed too broad for the intended purposes, such provision shall, nevertheless, be valid and enforceable to the maximum extent permitted allowed by law. If any of the provisions of this Section 5 are determined applicable Law and such provision shall be construed by limiting and reducing it so as to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar enforceable to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionextent compatible with the applicable Law.

Appears in 2 contracts

Samples: Limited Liability Company Agreement (SmileDirectClub, Inc.), Limited Liability Company Agreement (SmileDirectClub, Inc.)

Restrictive Covenants. The In consideration of the employment by the Company of Executive and the consideration outlined in Article 3 of this Agreement, Executive agrees that he or she shall to be bound by this Section 4.3. Executive will not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request indirectly, do any of the Company or its Subsidiaries):following during the Term and the Restricted Period: (a) engage inor participate in any business activity substantially similar to an activity from which the Company or its subsidiaries or affiliates derives revenue (or, have an interest inwith respect to the application of this provision during the Restricted Period, engage or otherwise be employed by participate in any such business activity within 50 miles of any Company branch or office operating or preparing imminently to operate on the date Executive's employment ends) (whether a "Competing Business"); (b) become interested in (as an owner, operatorstockholder, lender, partner, memberco-venturer, managerdirector, officer, employee, officeragent or consultant) any person, directorfirm, consultantcorporation, advisor, association or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, other entity engaged in a business that is any Competing Business. Notwithstanding the foregoing, Executive may hold up to 4.9% of the outstanding securities of any class of any publicly traded securities of any company; (c) solicit or call on, either directly or indirectly, for purposes of selling goods or services competitive with a business in which goods or services sold by the Company or any of its Subsidiaries engages (a “Competitive Business”); providedsubsidiaries or affiliates, that ownership of less than one percent (1%) of any customer with whom the outstanding stock of Company shall have dealt or any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines prospective customer that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Company has identified and solicited at any time during Executive’s 's employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (bd) solicit adversely influence or attempt to adversely influence any Person who is supplier, customer or potential customer of the Company to terminate or modify any written or oral agreement or course of dealing with the Company; (e) adversely influence or attempt to adversely influence any person to terminate or modify any employment, consulting, agency, distributorship or other arrangement with the Company; or, within the prior twelve (12f) months, wasemploy or retain, or whose Affiliate is orarrange to have any other person or entity employ or retain, within the prior twelve (12) monthsany employee, was a customer consultant, agent or distributor of the Company or any of its Subsidiaries subsidiaries or persuade affiliates (or attempt with respect to persuade the application of this provision during the Restricted Period, any such Person not to be a customer of person or entity who, within the 12 months preceding the date Executive's employment by the Company ends, was employed or engaged by the Company or any of its Subsidiaries subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates affiliates as an employee during the immediately preceding twelve (12) months employee, consultant, agent or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(cdistributor). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of that the restrictions of this Section 5 contained in Sections 4.1, 4.2 and 4.3 are reasonable; (2) reasonable and necessary to protect the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection legitimate interests of the Company and its Subsidiariessubsidiaries and affiliates and that the duration of the Restricted Period, and the provisions of Sections 4.1, 4.2 and 4.3, are reasonable given Executive's position within the Company and the substantial consideration payable under this Agreement. The Executive further acknowledges that Sections 4.1, 4.2 and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause 4.3 are included herein in order to induce the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of enter into this Section 5 Agreement and that the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and would not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that have entered into this Agreement or any provision hereof may be reformed so that it is enforceable to in the maximum extent permitted by law. If any absence of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionthese provisions.

Appears in 2 contracts

Samples: Employment Agreement (Penseco Financial Services Corp), Employment Agreement (Penseco Financial Services Corp)

Restrictive Covenants. (a) The Executive agrees covenants that for a period of twenty-four (24) months following the date hereof, he or she shall will not, during the Non-Compete Period, either directly or indirectly indirectly, (other than on behalf i) disclose or otherwise make known to any person or entity the names and addresses of any of the customers of the Company, or at (ii) call on, solicit, or take away, or attempt to call on, solicit, or take away, any of the request customers of the Company or its Subsidiaries):subsidiaries with whom he became acquainted during his employment with the Company, either for himself or for any other person, firm, corporation or other entity. (ab) engage inThe Executive acknowledges that the Company and/or its subsidiaries have developed unique skills, have an interest inconcepts, sales presentations, marketing programs, marketing strategy, business practices, methods of operation, trademarks, licenses, technical information, proprietary information, computer software programs, tapes and disks concerning its or their operations, systems, customer lists, customer leads, documents identifying past, present and future customers, hiring and training methods, investment policies, financial and other confidential and proprietary information concerning its operations and expansion plans ("Trade Secrets"). The Executive agrees and covenants that, except with the prior written consent of the Company, the Executive shall not, directly or indirectly, use for the Executive's own benefit or for the benefit of another, or otherwise be employed by disclose, disseminate, or distribute to another, any Trade Secret (whether or not acquired, learned, obtained, or developed by the Executive alone or in conjunction with others) of the Company or its subsidiaries. All memoranda, notes, records, drawings, documents, or other writings whatsoever (including copies thereof) made, compiled, acquired, or received by the Executive during his employment by the Company, arising out of, in connection with, or related to any activity or business of the Company or its subsidiaries, including, but not limited to, the customers, suppliers, or others with whom the Company or its subsidiaries has a business relationship, the arrangements of the Company or its subsidiaries with such parties, and the pricing and expansion policies and strategy of the Company or its subsidiaries, are, and shall continue to be, the sole and exclusive property of the Company and its subsidiaries, and shall be returned to the Company within five (5) days of the execution of this Agreement. (c) The Executive hereby covenants and agrees that for a period of twenty four (24) months following the date hereof, he will not, either directly or indirectly, as an owneremployee, operatoremployer, consultant, agent, principal, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages shareholder (a “Competitive Business”); provided, that other than through ownership of publicly traded capital stock of a corporation which represents less than one five percent (15%) of the outstanding capital stock of such corporation), corporate officer, director, investor, financier or in any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedother individual or representative capacity, further, that, providing investment banking engage or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services participate in any business which is not directly competitive with the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be subsidiaries in the Internet service provider, e-commerce and telecommunications business marketing products and services through a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)multi-level referral network marketing organization. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 2 contracts

Samples: Termination Agreement (Compu Dawn Inc), Termination Agreement (Compu Dawn Inc)

Restrictive Covenants. The Executive agrees that he or she (a) During the Consultancy Term, Consultant shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of indirectly, own any interest in, participate or at the request of the Company or its Subsidiaries): (a) engage in, have an interest inassist, or otherwise be employed by render any services (whether including advisory services) to, become associated with, work for, serve (in any capacity whatsoever, including, but not limited to, as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, representative, agent, independent contractor, officer or representative)director) or otherwise become in any way or manner connected with the ownership, provide consulting or management services tomanagement, operation, or permit his or her name to be used in connection with the activities control of, any person, business, firm, corporation, partnership, trust or other business or organizationgovernmental entity (each, engaged a “Competing Business”) that, anywhere in a the United States, primarily engages in, or assists others in engaging in or conducting, any business that is deals, directly or indirectly, in products or services similar in nature to or directly competitive with a business in which the products and/or services sold, marketed, manufactured, distributed and/or provided by the Company or any in conducting the Business as of its Subsidiaries engages (a “Competitive Business”)the date of this Agreement; provided, however, that ownership of less than one percent (1%the restrictions set forth in this paragraph 5(a) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation exclude Consultant or Xxxxxxxx from acting as director, officer, employee, consultant, agent and/or advisor of this Section 5 solely by reason thereofan entity for the benefit of the Company with the consent of the Board; and further, provided, furtherhowever, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative that the restrictions set forth in this paragraph 5(a) shall not be deemed to be prohibit Consultant and/or Xxxxxxxx from owning or acquiring securities issued by any entity whose securities are listed on a violation national securities exchange or are quoted on the OTC Bulletin Board, provided that Executive at no time owns, directly or indirectly, beneficially or otherwise, 3% or more of this Section 5 solely by reason thereof so long as providing any class of any such services is not the primary duties entity’s outstanding capital stock or business activities other form of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;equity ownership. (b) During the Consultancy Term, Consultant shall not knowingly provide or solicit to provide to any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company any goods or any of its Subsidiaries services that are similar in nature to [or persuade or attempt to persuade any such Person not to be a customer competitive with] those goods and services sold and/or provided by the Company in conducting the Business as of the Company or date of this Agreement. For the purposes of this paragraph 5(b), the term “customer” means any of its Subsidiaries or third party to reduce the amount of business that such customer does with whom the Company or has provided goods and services at any of its Subsidiaries, or enter into or seek to enter into any agreement (to time during the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orConsultancy Term. (c) contactDuring the Consultancy Term, approach or Consultant will not solicit for the purpose of offering employment to or hiring or retainingemployment, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade solicit, directly or by assisting others, any Person not to continue to be employed employee, officer, consultant, representative, agent or retained by advisor of the Company or its Affiliates or to terminate his or her employment or services with whom Consultant had contact with during the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Consultancy Term. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges Consultant each acknowledge and agrees (x) the Executive’s breach agree that any remedy at law for a violation of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined 5, Sections 4 and 8 or paragraph 11(n) may not, in itself, adequate to protect such party, and each party shall therefore be wholly entitled to specific performance or partially unenforceable, any other mode of injunctive and/or other equitable relief to enforce the Executive hereby agrees that party’s rights under this Agreement or any provision hereof other relief a court may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionaward.

Appears in 2 contracts

Samples: Consulting Agreement (TheraBiogen, Inc.), Consulting Agreement (TheraBiogen, Inc.)

Restrictive Covenants. The Executive (a) For a period of five (5) years from and after the Closing Date, each Seller agrees that he he, she or she it shall not, during the Non-Compete Periodand shall cause his, her or its controlled Affiliates not to, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inindirectly, have an interest in, or otherwise be employed by (whether as an owner, operatorprincipal, partner, member, manager, employee, officer, director, employee, consultant, advisormanager, member or representative)stockholder, provide consulting own, manage, operate, participate in, control or management services to, acquire more than five percent (5%) of (or permit his or her name the right to be used in connection with the activities acquire more than five percent (5%) of) any class of voting securities of, any business perform services for or organizationotherwise carry on or engage in, engaged in a business that competes with any of the Acquired Businesses anywhere in the United States, the Netherlands or any other jurisdiction in which the Acquired Businesses operate as of the Closing Date. (b) For a period of five (5) years from and after the Closing Date, except with respect to any work that may be performed on behalf of the Acquired Businesses as an employee or agent of the Acquired Businesses, each Seller agrees that he, she or it shall not, and shall cause his, her or its controlled Affiliates not to, directly or indirectly contact, solicit, market to, sell any product or service to, consult with or perform any service whatsoever for (x) any Person that is as of the Closing Date, or during the preceding six (6) months was, a customer of any of the Acquired Businesses (each, a “Company Customer”) or (y) any Affiliate of a Company Customer, which product or service is competitive with any product or service offered by any of the Acquired Businesses on the Closing Date. (c) For a business period of five (5) years from and after the Closing Date, each Seller agrees that, without the consent of Purchaser, he, she or it shall not, and shall cause his, her or its controlled Affiliates not to, directly or indirectly hire, solicit to (or assist or encourage others to) hire, or in which any way interfere with the employment relationship of any individual who is as of the Closing Date an employee of any Acquired Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) in connection with any of the outstanding stock of Acquired Businesses or who was employed by any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Acquired Company or any of its Subsidiaries or persuade or attempt to persuade in connection with any such Person not to be a customer of the Company Acquired Businesses within the six (6) months prior to the Closing Date. Notwithstanding the foregoing, none of the Sellers or any of its Subsidiaries their controlled Affiliates shall be precluded from engaging in general solicitations or to reduce the amount of business advertising for personnel, including advertisements and searches conducted by a headhunter agency; provided that such customer does with solicitation, advertising or searches are not directed in any way at the employees of any Acquired Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything The Sellers acknowledge and agree that the scope of the restrictive covenants set forth in clauses (a) through (c) above are reasonably tailored, and not broader than necessary, to protect the legitimate business interests of Purchaser, and do not prevent or preclude the Sellers from earning a suitable livelihood. (e) If any term or provision of this Section 7.10 shall be determined by any court of competent jurisdiction to be invalid, illegal or unenforceable, in whole or in part, and such determination shall become final, such provision or portion shall be deemed to be severed or limited, but only to the contrary in extent required to render the remaining terms and provisions of this Section 5, with respect 7.10 enforceable. This Section 7.10 as thus amended shall be enforced so as to give effect to the country intention of Mexicothe parties insofar as that is possible. In addition, the parties hereby expressly empower a court of competent jurisdiction to modify any term or provision of this Section 5 will only apply 7.10 to the extent necessary to comply with any Applicable Law and to enforce this Section 7.10 as modified. (and therefore will be limitedf) to activities that are competitive with the businesses in which any Each of the Mexican Subsidiaries of the Company engages. The Executive Sellers acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is that money damages would not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary be an adequate remedy for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause 7.10. In the Company irreparable harm, which cannot be adequately compensated event of an actual or threatened breach by money damages, (y) if the Executive breaches or threatens to breach the provisions a Seller of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined 7.10, Purchaser, in addition to be wholly any other remedies available to it, may obtain from a court of competent jurisdiction specific performance and/or injunctive relief in order to enforce, or partially unenforceableprevent any breach of, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly 7.10 without the requirement of posting any bond or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionindemnity.

Appears in 2 contracts

Samples: Equity Purchase Agreement, Equity Purchase Agreement (Gsi Group Inc)

Restrictive Covenants. The Executive If the employment of the Employee is terminated for any reason (including voluntary resignation), then the Employee agrees that for a period of two (2) years thereafter, he or she shall will not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (ai) engage in, have an interest inalone or for his own account, or otherwise be employed by (whether as an ownera officer, operatordirector, shareholder, partner, member, managertrustee, employee, officer, director, consultant, advisor, agent or representative)any other capacity of any corporation, provide consulting or management services topartnership, joint venture, trust, or permit his other business organization or her name entity, encourage, support, finance, be engaged in, interested in, or concerned with (x) any of the companies and entities described on Schedule I hereto, except to be used the extent that any activities in connection with therewith are confined exclusively outside the activities ofContinental United States, or (y) any other business having an office or organizationbeing conducted within a radius of fifty (50) miles of any funeral home, engaged in a cemetery or other death care business that is competitive with a business in which owned or operated by the Company or any of its Subsidiaries engages subsidiaries at the time of such termination; (ii) induce or assist anyone in inducing in any way any employee of the Company or any of its subsidiaries to resign or sever his or her employment or to breach an employment contract with the Company or any such subsidiary; or (iii) own, manage, advise, encourage, support, finance, operate, join, control, or participate in the ownership, management, operation, or control of or be connected in any manner with any business which is or may be in the funeral, mortuary, crematory, cemetery or burial insurance business or in any business related thereto (x) as part of any of the companies or entities listed on Schedule I, or (ii) otherwise within a “Competitive Business”); providedradius of fifty (50) miles of any funeral home, that cemetery or other death care business owned or operated by the Company or any of its subsidiaries at the time of such termination. Notwithstanding the foregoing, the above covenants shall not prohibit the passive ownership of less not more than one percent (1%) of the outstanding stock voting securities of any publicly traded corporation entity. The foregoing covenants shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking held invalid or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination unenforceable because of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions territory or actions subject hereto or restricted hereby, or the period of this Section 5 time within which such covenants respectively are reasonable; (2) operative, but the burden on maximum territory, the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens action subject to breach the provisions of this Section 5 such covenants and the Company (period of time they are enforceable are subject to any determination by vote a final judgment of a majority of any court which has jurisdiction over the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits parties and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionsubject matter.

Appears in 2 contracts

Samples: Annual Report, Employment Agreement (Carriage Services Inc)

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, the Employee agrees that he or she shall not, during the Non-Compete Employment Period and for a period of twelve (12) months following the Employment Period, the Employee shall not directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, member, employee, consultant, advisoragent, independent contractor or stockholder of, or representative), provide consulting or management services lender to, any company or permit his or her name to be used business, engage in connection with the activities of, any business which competes, directly or organizationindirectly, engaged in a with any business that is competitive with a business in which of the Company or any of its Subsidiaries engages (a “Competitive Business”)Company; provided, however, that the beneficial ownership of less than one percent (1%) of the outstanding shares of stock of any publicly corporation having a class of equity securities actively traded corporation on a national securities exchange or over-the-counter market shall not be deemed deemed, in and of itself, to be a violation violate the prohibitions of this Section 5 solely by reason thereofSection; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;or (b) solicit for any Person who is orreason, within the prior twelve (12i) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a induce any customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates to patronize any business directly or attempt to persuade indirectly in competition with the businesses conducted by the Company or any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its subsidiaries or affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries subsidiaries or affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer’s or vendor’s business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engage) withsubsidiaries or affiliates at or within the prior six months, or in any manner seek to the Executive’s knowledge, induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment. The provisions of this Section 6 shall apply to Employee whether or not Employee’s employment or services with the Company has been terminated for Cause or its Affiliates; provided, that notwithstanding without Cause and whether or not the Company is required to pay Employee severance benefits under Section 3 of this Agreement. Notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of if this Section 5(c). (d) Notwithstanding anything to Agreement expires by its terms at the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any end of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of Employment Period, then the provisions of this Section 5 will cause 6 shall only apply to Employee if the Company irreparable harm, provides Employee with all of the severance benefits which cannot it would be adequately compensated by money damages, (yobligated to provide to him under Section 3(c) of this Agreement as if the Executive breaches or threatens to breach the provisions of this Section 5 and Employee had been terminated from his employment with the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionCause.

Appears in 2 contracts

Samples: Employment Agreement (Timco Aviation Services Inc), Employment Agreement (Timco Aviation Services Inc)

Restrictive Covenants. The Executive agrees that he or she shall not, during acknowledges and recognizes the Non-Compete Period, directly or indirectly (other than on behalf highly competitive nature of or at the request businesses of the Company or and its Subsidiaries):affiliates and accordingly agrees as follows: (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with During the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any period of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, Executive will not, directly or indirectly, (i) engage in any business for Executive’s own account that competes with the provisions business of the Company or its affiliates (including, without limitation, businesses which the Company or its affiliates have specific plans to conduct in the future and as to which Executive is aware of such planning), (ii) enter the employ of, or render any services to, any person engaged in any business that competes with the business of the Company or its affiliates, (iii) acquire a financial interest in any person engaged in any business that competes with the business of the Company or its affiliates, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant. During the period of Executive’s employment by the Company and for a period of one year thereafter (the “Restricted Period”), Executive will not, directly or indirectly, interfere with business relationships (whether formed before or after the date of this Section 5(aAgreement) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of between the Company or any of its Subsidiaries affiliates and clients, customers, suppliers, partners, members or persuade or attempt to persuade any such Person not to be a customer investors of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)affiliates. (db) Notwithstanding anything to the contrary in this Section 5Agreement, with respect to Executive may, directly or indirectly, own, solely as an investment, securities of any person engaged in the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries business of the Company engages. The or its affiliates which are publicly traded on a national or regional stock exchange or on an over-the-counter market if Executive acknowledges and agrees that: (1i) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions a controlling person of, or a member of this Section 5; a group which controls, such person and (4ii) does not, directly or indirectly, own five percent (5%) or more of any class of securities of such person. (c) During the restrictions of this Section 5 are necessary for the protection Restricted Period, Executive will not, directly or indirectly, (i) solicit or encourage any employee or consultant of the Company or its affiliates to leave the employment of the Company or its affiliates. (d) During the Restricted Period, given her access to and knowledge of the Company’s proprietary and confidential information, client list, business strategy and pricing, among other proprietary knowledge, Executive will not use or disclose confidential information to directly or indirectly, directly or indirectly, solicit or encourage to cease to work with the Company or its Subsidiaries. The affiliates any clients or potential clients with the Company or its affiliates. (e) It is expressly understood and agreed that although Executive further acknowledges and agrees (x) the Company consider the restrictions contained in this Section 14 to be reasonable, if a final determination is made by an arbitrator or court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive’s breach of , the provisions of this Section 5 will cause the Company irreparable harmAgreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, which if any arbitrator or court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens amended so as to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu ofmake it enforceable, such other remedies as may be available to finding shall not affect the Company for such breach, including the recovery enforceability of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionrestrictions contained herein.

Appears in 2 contracts

Samples: Employment Agreement (Resources Connection Inc), Employment Agreement (Resources Connection Inc)

Restrictive Covenants. The Executive agrees 5.6.1 Each Seller which is a body corporate shall not (and undertakes to procure that he or no person controlled by it shall), and each Seller that is not a body corporate undertakes that he/she shall not, during the Non-Compete Period, either directly or indirectly (other than and either alone or in conjunction with or on behalf of any other person (whether on his/her/its own account or at the request of the Company as a principal, partner, shareholder, director, employee, consultant, agent or its Subsidiariesin any other capacity whatsoever): (ai) engage ineither pending or within two years after Completion, have an interest insolicit, induce or otherwise be employed by endeavour to entice to leave the service or the employment of any member of the Group, any Senior Employee with whom that Seller had dealings in the 12 months prior to Completion (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting not such Senior Employee would breach their contract of employment or management services to, or permit his or her name to be used in connection with engagement by reason of leaving the activities of, any business or organization, engaged in a business that is competitive with a service of the business in which they work) provided, however, that the Company foregoing will not prohibit any Seller from (i) making generalised searches for employees by the use of advertisements in the media (including trade media) or by engaging search firms to engage in searches that are not targeted or focused on any Senior Employee; or (ii) hiring any person whose employment has been terminated by the Purchaser's Group or any of its Subsidiaries engages Group Company on or after Completion; and/or (a “Competitive Business”); provided, that ownership of less than one percent (1%ii) of the outstanding stock of any publicly traded corporation shall not be deemed without limitation to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to Clause 5.6 and without limitation in time, use any trade or business or domain name or e-mail address or distinctive xxxx, style or logo used by or in the Executive following the termination business of any member of the Executive’s employment by Group at any time during the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, two years before Completion or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company anything intended or any of its Subsidiaries or persuade or attempt to persuade any such Person not likely to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does confused with the Company or any of its Subsidiariessame, or enter into or seek to enter into any agreement (except to the extent such agreement is of a nature that is related relevant to the business in which the ongoing employment with any Group Company or the Purchaser's Group. 5.6.2 Each undertaking contained in Clause 5.6.1 shall be construed as a separate and severable undertaking and if one or more of the undertakings is held to be against the public interest or unlawful or in any way an unreasonable restraint of its Subsidiaries engage) withtrade or unenforceable in whole or in part for any reason, the remaining undertakings or parts thereof, as appropriate, shall continue to bind the Executive’s knowledge, any Sellers with such Person; ordeletion or modification as may be necessary to make it valid and enforceable. (c) contact, approach or solicit 5.6.3 The Sellers agree that the undertakings contained in Clause 5. 6.1 are reasonable and are entered into for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained protecting the goodwill and confidential information of the business of each Group Company and that accordingly the benefit of the undertakings in Clause 5.6.1 may be assigned by the Company or Purchaser and its Affiliates as an employee during successors in title without the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any consent of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionSellers.

Appears in 2 contracts

Samples: Share Sale Agreement (Validus Holdings LTD), Share Sale Agreement (Validus Holdings LTD)

Restrictive Covenants. The Executive To assure that MSP, Buyer and the Acquired Entities will realize the benefits of the Transactions, each Seller severally agrees that he not to: (a) From the Closing Date until two years after the Closing Date, directly or she shall notindirectly, during alone or as a partner, joint venturer, officer, director, member, employee, consultant, agent, independent contractor or Equity Interest holder of, or lender to, any Person or business, engage in corporate clothing and uniform supply business (the Non-Compete Period“Relevant Business”) anywhere in the United Kingdom (the “Restricted Area”). (b) From the Closing Date until two years after the Closing Date, directly or indirectly (other than on behalf 1) induce any Person which is a customer of or at the request of the Company or its Subsidiaries): (a) engage inany Acquired Entity, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership their subsidiaries or commercial agents at or at any time during the two years immediately before Closing or was at the date of less than one percent (1%) Closing in the process of the outstanding stock of negotiating or contemplating doing business with any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company Acquired Entity or any of its Subsidiaries their subsidiaries or persuade commercial agents, to patronize any business directly or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does indirectly in competition with the Company or any of its SubsidiariesRelevant Business in the Restricted Area, (2) canvass, solicit, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain accept from any Person who is or was a customer of any Acquired Entity, or any of their subsidiaries or commercial agents at or at any time during the two years immediately before Closing or was at the date of Closing in the process of negotiating or contemplating doing business with any Acquired Entity or any of their subsidiaries or commercial agents in relation to the Restricted Business in the Restricted Area, any such competitive business, or (3) request or advise any Person who is or was a customer or vendor of any Acquired Entity or any of their subsidiaries or commercial agents in relation to the Restricted Business in the Restricted Area at or at any time during the two years immediately before Closing or was at the date of Closing in the process of negotiating or contemplating doing business with any Acquired Entity or any of their subsidiaries or commercial agents, to withdraw, curtail, or cancel any such customer’s or vendor’s business with such Person. (c) From the Closing Date until two years after the Closing Date, directly or indirectly employ or knowingly permit any subsidiary or commercial agent of such Seller to employ any person who was employed or retained otherwise engaged by the Company any Acquired Entity, or its Affiliates as an employee any of their subsidiaries or commercial agents at or at any time during the two years immediately preceding twelve (12) months or attempt before Closing in relation to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with Restricted Business in the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Restricted Area. (d) Notwithstanding anything From the Closing Date until two years after the Closing Date, directly or indirectly (1) solicit for employment by any such Seller or any of its subsidiaries or commercial agents any employee or independent contractor of any Acquired Entity, or any of their subsidiaries or commercial agents who was an employee or independent contractor of any Acquired Entity, or any of their subsidiaries or commercial agents at or at any time during the two years immediately before Closing in relation to the contrary Restricted Business in the Restricted Area , other than such person (I) whose employment or independent contractor relationship was terminated by the applicable Person, or (II) who independently responded to a general solicitation for employment by such Seller or such Seller’s subsidiary or commercial agent, or (2) induce or attempt to induce any such employee or independent contractor of any Acquired Entity, or any of their subsidiaries or commercial agents, to terminate such employee’s employment or independent contractor’s active contractual relationship with such Person. Notwithstanding the foregoing, the beneficial ownership of up to 3% of the Equity Interests of any Person having a class of Equity Interest actively traded on a recognized stock exchange shall not be deemed, in and of itself, to breach the prohibitions of this Section 5, with respect to the country of Mexico, this Section 5 will only apply (4.9. Each Seller agrees and therefore will be limited) to activities acknowledges that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time restrictions in this Section 4.9 are reasonable in scope and geographical duration and are necessary to protect MSP, Buyer and the Acquired Entities after the Closing and (2) it has had the opportunity to take independent legal advice on the restrictions in this Section 4.9. If any provision of this Section 4.9, as applied to any Party or to any circumstance, is adjudged by a Governmental Authority, arbitrator, or mediator not to be Enforceable in accordance with its terms, the same will in no way affect any other circumstance or the Enforceability of the remainder of this Agreement. If any such provision, or any part thereof, is held not to be Enforceable in accordance with its terms because of the duration of such provision, the area covered thereby, or the scope of the restrictions activities covered, the Parties agree that the Governmental Authority, arbitrator, or mediator making such determination shall have the power to reduce the duration, area and/or scope of activities of such provision and/or to delete specific words or phrases, and in its reduced form, such provision shall then be Enforceable and shall be Enforced. The Parties agree and acknowledge that the breach of this Section 5 are reasonable; (2) 4.9 may cause irreparable damage to MSP, Buyer and the burden on the Executive Acquired Entities and upon breach of complying with the restrictions any provision of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm4.9 MSP, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits Buyer and/or any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) Acquired Entity shall be entitled to temporary and permanent claim for injunctive relief from a court of competent jurisdictionrelief, without posting any bond specific performance, or other security and without equitable relief; provided, however, that the necessity of proof of actual damage, foregoing remedies shall in addition to, and not in lieu of, such no way limit any other remedies as which MSP, Buyer and/or any Acquired Entity may have and provided that no claim shall be available to made against any Management Seller who is carrying out his duties in accordance with his contract of employment with the Company for such breach, including the recovery of money damages. If Buyer and/or any member of the provisions of Buyer’s Group. Notwithstanding the foregoing, Xxxxxxx shall be released from its obligations in this Section 5 are determined 4.9 if it notifies Buyer in writing that it desires to be wholly or partially unenforceableso released, the Executive hereby agrees provided that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination event Xxxxxxx shall not be entitled to appoint a bar Director to the Board of Buyer, and shall procure that the Xxxxxxx Director at such time is removed, nor shall Xxxxxxx be entitled to receive any information relating to the Buyer or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionAcquired Entities under this Agreement.

Appears in 2 contracts

Samples: Investment, Shareholders’ and Stock Purchase Agreement (Mens Wearhouse Inc), Investment, Shareholders’ and Stock Purchase Agreement (Mens Wearhouse Inc)

Restrictive Covenants. The Executive agrees that he or she (i) During the Term of Employment and for one year following the Date of Termination, the Employee shall not, during the Non-Compete Period, not directly or indirectly (other than on behalf of engage, participate, own or at the request of the Company or its Subsidiaries): (a) engage in, have an interest make any financial investments in, or otherwise be become employed by or render (whether as an owneror not for compensation) any consulting, operator, partner, member, manager, employee, officer, director, consultant, advisor, advisory or representative), provide consulting other services to or management services to, or permit his or her name to be used in connection with for the activities benefit of, any business person, firm or organizationcorporation, engaged in a business that is competitive with a business in which directly or indirectly, engages primarily in, the Company or any development of its Subsidiaries engages (a “Competitive Business”)adult retirement communities and/or active adult communities; provided, however, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation it shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services Agreement for the Employee (i) to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation have beneficial ownership of this Section 5 solely by reason thereof so long as providing such services is not less than 1% of the primary duties or business outstanding amount of any class of securities of any enterprise (but without otherwise participating in the activities of such individual; provided, further, that, enterprise) if the Board determines that the provisions such securities are listed on a national securities exchange or quoted on an inter-dealer quotation system or (ii) to have beneficial ownership of this Section 5(a) should not apply to the Executive following the termination less than 20% of the Executive’s employment by outstanding amount of any class of securities of any enterprise (but without otherwise participating in the Companyactivities or otherwise having influence or control of such enterprise) if such securities are not registered under Section 12 of the Securities Exchange Act of 1934, the provisions of this Section 5(a) shall be deemed waived with respect to the Executiveas amended; (bii) solicit any Person who is orDuring the Term of Employment, within the prior twelve Employee shall not, directly or indirectly, (12A) monthssolicit, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does in competition with the Company or Avatar (their subsidiaries and/or affiliates (each of the foregoing entities being referred to herein, collectively and individually, as the "Avatar Entities"), any person who is a customer of its Subsidiariesany business conducted by the Avatar Entities or (B) in any manner whatsoever induce, or enter into assist others to induce, any supplier of the Company to terminate its association with such entity or seek do anything, directly or indirectly, to enter into any agreement (to the extent such agreement is of a nature that is related to interfere with the business in which relationship between the Company or Avatar and any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; ortheir respective current or prospective suppliers. (ciii) contactDuring the Term of Employment the Employee shall not, approach directly or indirectly, solicit for or induce any employee of the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or Avatar Entities to terminate his or her employment or services for any purpose, including without limitation, in order to enter into employment with any entity which competes with any business conducted by the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Avatar Entities. (div) Notwithstanding anything The Employee recognizes and acknowledges that certain confidential business and technical information used by the Employee in connection with the Permitted Activities that includes, without limitation, certain confidential and proprietary information relating to the contrary designing, development, construction and marketing of real estate, is a valuable, special and unique asset of the Company, such information, subject to Section 5(a)(vi) below, collectively being referred to as the "Confidential Information." During the Term of Employment the Employee shall not (A) use Confidential Information, or any part thereof other than in this Section 5connection with his duties hereunder or Permitted Activities, nor (B) disclose such information to any person, firm, corporation, association or other entity for any purpose or reason whatsoever. (v) During the Term of Employment and for all time following the Date of Termination, the Employee shall not, directly or indirectly, furnish or make accessible to any person, firm, or corporation or other business entity, whether or not he, she, or it competes with respect the business of the Company, any trade secret or know-how acquired by the Employee during his employment by the Company which relates to the country of Mexicobusiness practices, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any methods, processes or other confidential or secret aspects of the Mexican Subsidiaries business of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and Avatar Entities without prior written consent from the Company (by vote of a majority of such information, subject to Section 5(a)(vi) below, being referred to as the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the "Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionConfidential Information").

Appears in 2 contracts

Samples: Employment Agreement (Avatar Holdings Inc), Employment Agreement (Avatar Holdings Inc)

Restrictive Covenants. (a) The Executive agrees acknowledges and recognizes that during the Employment Period he or she will be privy to confidential information of the Corporation and further acknowledges and recognizes that the Corporation would find it extremely difficult to replace the Executive. Accordingly, in consideration of the promises contained herein and the consideration to be received by the Executive hereunder (including, without limitation, the severance compensation described in Section 8, if any), without the prior written consent of the Corporation, the Executive shall not, at any time during the Nonemployer/employee relationship between the Corporation and the Executive or the one-Compete Periodyear period after the termination of such employer/employee relationship, (i) directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage in, have an interest inrepresent in any way, or otherwise be employed by connected with, any Competing Business (as hereinafter defined) directly competing with the business of the Corporation or any direct or indirect subsidiary or affiliate thereof in the United States, Canada or Europe, whether such engagement shall be as an owner, operator, partner, member, manager, employee, officer, director, consultantowner, advisoremployee, partner, affiliate or representative)other participant in any Competing Business, provide consulting (ii) assist others in engaging in any Competing Business in the manner described in clause (i) above, (iii) induce or management services to, solicit other employees of the Corporation or permit his any direct or her name indirect subsidiary or affiliate thereof to be used in connection terminate their employment with the activities ofCorporation or any such direct or indirect subsidiary or affiliate or to engage in any Competing Business or (iv) induce any entity or person with which the Corporation or any direct or indirect subsidiary or any affiliate thereof has a business relationship to terminate or alter such business relationship. As used herein, "Competing Business" shall mean any business involving the discovery, development and commercialization of products in the United States, Canada or organizationEurope if such business or the products developed or sold by it are competitive, engaged in a directly or indirectly, at the time of the Termination Date with (A) the business that is competitive with a business in which of the Company Corporation or any of its Subsidiaries engages direct or indirect subsidiary thereof, (a “Competitive Business”); provided, that ownership of less than one percent (1%B) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed products manufactured, sold or distributed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement Corporation or any provision hereof may be reformed so that it is enforceable to direct or indirect subsidiary thereof or (C) any products or business being developed or conducted by the maximum extent permitted by law. If Corporation or any of the provisions of this Section 5 are determined to be wholly direct or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionindirect subsidiary thereof.

Appears in 2 contracts

Samples: Employment Agreement (Barrier Therapeutics Inc), Employment Agreement (Barrier Therapeutics Inc)

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, the Employee agrees that he or she shall not, during the Non-Compete Periodterm of this Agreement, and for a period of six months following the termination of this Agreement, the Employee shall not directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, member, employee, consultant, advisoragent, independent contractor or stockholder of, or representative), provide consulting or management services lender to, any company or permit his or her name to be used business, engage in connection with the activities of, any business which competes, directly or organizationindirectly, engaged in a with any business that is competitive with a business in which of the Company or any of its Subsidiaries engages (a “Competitive Business”)Company; provided, however, that the beneficial ownership of less than one percent (1%) of the outstanding shares of stock of any publicly corporation having a class of equity securities actively traded corporation on a national securities exchange or over-the-counter market shall not be deemed deemed, in and of itself, to be a violation violate the prohibitions of this Section 5 solely by reason thereofSection; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;or (b) solicit for any Person who is orreason, within the prior twelve (12i) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a induce any customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates to patronize any business directly or attempt to persuade indirectly in competition with the businesses conducted by the Company or any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its subsidiaries or affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries subsidiaries or affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer’s or vendor’s business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engage) withsubsidiaries or affiliates at or within the prior six months, or in any manner seek to the Executive’s knowledge, induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment. The provisions of this Section 6 shall apply to Employee whether or not Employee’s employment or services with the Company has been terminated for Cause or its Affiliates; provided, that notwithstanding without Cause and whether or not the Company is required to pay Employee severance benefits under Section 3 of this Agreement. Notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of if this Section 5(c). (d) Notwithstanding anything to Agreement expires by its terms at the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any end of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of Employment Period, then the provisions of this Section 5 will cause 6 shall only apply to Employee if the Company irreparable harm, provides Employee with all of the severance benefits which cannot it would be adequately compensated by money damages, (yobligated to provide to him under Section 3(c) of this Agreement as if the Executive breaches or threatens to breach the provisions of this Section 5 and Employee had been terminated from his employment with the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionCause.

Appears in 2 contracts

Samples: Employment Agreement (Timco Aviation Services Inc), Employment Agreement (Timco Aviation Services Inc)

Restrictive Covenants. The Executive agrees that he 10.1 Subject to clause 10.2, each of the Sellers and the Travelport Guarantor covenants with the Purchasers and each Group Company (with the intention of assuring to the Purchasers the full benefit and value of the goodwill and connections of the Group and as a constituent part of the agreement for the sale of the Shares) that, except with the consent in writing of the Purchasers: (i) for the period of 2 years after Completion, it will not either on its own account or she shall notin conjunction with or on behalf of any other person (other than as a holder of shares in a company carrying on such a business where the shareholding is for investment purposes only and does not confer a degree of control amounting to or exceeding material influence over the business in question) carry on or be engaged, during the Non-Compete Periodconcerned or interested, directly or indirectly indirectly, whether as shareholder, director, partner, agent or otherwise, in any business engaged in the provision of escorted tours or wholesale distribution of hotel and other accommodation services to tour operators, travel agents and other wholesalers as carried on at the date of this Agreement by any Group Company (a “Competing Business”); (ii) for the period of 2 years after Completion, it will not either, on its own account or in conjunction with or on behalf of any other person, solicit or entice away or attempt to solicit or entice away from any Group Company, offer employment to or employ, or offer to conclude any contract of services with, any Key Employee; (iii) it will not at any time hereafter make use of or disclose or divulge to any person (other than on behalf of to officers or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock employees of any publicly traded corporation shall not be deemed Group Company whose province it is to be know the same) any information (other than any information properly available to the public (otherwise than, directly or indirectly, as a violation result of a breach of this Section 5 solely by reason thereof; provided, further, that, providing investment banking clause) or legal services disclosed or divulged pursuant to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation order of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdictionjurisdiction or the rules of any Governmental or Regulatory Authority, without posting including stock exchange rules and regulations) relating to any bond Group Company, the identity of its customers and suppliers, its products, finances, contractual arrangements, business or other security and without the necessity methods of proof of actual damagebusiness; (iv) it will not at any time hereafter, save as otherwise provided herein, in addition torelation to any trade, and not in lieu ofbusiness or company use a trade name, such other remedies as may be available to the Company for such breachtrade or service xxxx, design or logo including the recovery of money damages. If any of the provisions of this Section 5 are determined words “Gullivers”, “GTA”, “Octopus”, or “Travelcube” or any word confusingly similar thereto (other than “Travelport”) in such a way as to be wholly capable of or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined likely to be wholly confused with any trade name, trade or partially unenforceable in service xxxx, design or logo of any jurisdiction, such determination shall not be a bar to Group Company (whether registered or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionnot).

Appears in 2 contracts

Samples: Share Purchase Agreement, Share Purchase Agreement (Travelport LTD)

Restrictive Covenants. (a) The Executive agrees that he or she shall not, at any time during the Non-Compete Restricted Period, directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation, partnership, business or entity (other than on behalf whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in (either directly or through any subsidiary or Affiliate thereof) any business or activity (i) relating to midstream assets (including, without limitation, the gathering, processing and transportation of or at natural gas and crude oil) in North America, which competes with the request business of the Company or its Subsidiaries): (a) engage in, have an interest inany entity owned by the Company, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in ii) which the Company or any of its Subsidiaries Affiliates has taken active steps to engage in or acquire, but only if the Executive directly or indirectly engages in, has any equity interest in, or manages or operates, such business or activity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise). Notwithstanding the foregoing, the Executive shall be permitted to acquire a “Competitive Business”)passive stock or equity interest in such a business; provided, provided that ownership of less such stock or other equity interest acquired is not more than one five percent (15%) of the outstanding stock interest in such business. (b) The Executive shall not, at any time during the Term or during the twelve (12)-month period immediately following the Date of Termination, directly or indirectly, either for himself or on behalf of any publicly traded corporation other entity, (i) recruit or otherwise solicit or induce any employee, customer, subscriber or supplier of the Company to terminate its employment or arrangement with the Company, or otherwise change its relationship with the Company, or (ii) hire, or cause to be hired, any person who was employed by the Company and served in a capacity of “vice president” (or any person serving in a capacity senior to vice president) at any time during the twelve (12)-month period immediately prior to the Date of Termination. (c) The provisions contained in Sections 7(a) and (b) may be altered and/or waived to be made less restrictive on the Executive with the prior written consent of the Board or the Compensation Committee. (d) Except as the Executive reasonably and in good faith determines to be required in the faithful performance of the Executive’s duties hereunder or in accordance with Section 7(f), the Executive shall, during the Term and after the Date of Termination, maintain in confidence and shall not be deemed directly or indirectly, use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity, any confidential or proprietary information or trade secrets of or relating to be a violation the Company, including, without limitation, information with respect to the Company’s operations, processes, protocols, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of this Section 5 solely by reason thereof; providedemployment (“Proprietary Information”), furtheror deliver to any person, thatfirm, providing investment banking corporation or legal services other entity, any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information. The Executive’s obligation to a Competitive Business as an independent consultantmaintain and not use, independent advisor disseminate, disclose or independent representative shall not be deemed to be a violation publish, or use for the Executive’s benefit or the benefit of this Section 5 solely by reason thereof any person, firm, corporation or other entity, any Proprietary Information after the Date of Termination will continue so long as providing such services Proprietary Information is not, or has not by legitimate means become, generally known and in the primary duties public domain (other than by means of the Executive’s direct or business activities indirect disclosure of such individualProprietary Information) and continues to be maintained as Proprietary Information by the Company. The parties hereby stipulate and agree that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the Company (and any successor or assignee of the Company). (e) Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans, marketing strategies, products or processes. (f) The Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company (if lawfully permitted to do so) the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process. Upon notification from Executive of such subpoena or other legal process, but only to the extent that such notification is provided during the Restricted Period, the Company shall, at its reasonable expense, retain mutually acceptable legal counsel to represent Executive in connection with Executive’s response to any such subpoena or other legal process. The Executive may also disclose Proprietary Information if: (i) in the reasonable written opinion of counsel for the Executive furnished to the Company, such information is required to be disclosed for the Executive not to be in violation of any applicable law or regulation or (ii) the Executive is required to disclose such information in connection with the enforcement of any rights under this Agreement or any other agreements between the Executive and the Company. (g) The Executive agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, equity holders or Affiliates, either orally or in writing, at any time; providedprovided that the Executive may confer in confidence with the Executive’s legal representatives, furthermake truthful statements to any government agency in sworn testimony, or make truthful statements as otherwise required by law. The Company agrees that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following upon the termination of the Executive’s employment by hereunder, it shall advise its directors and executive officers not to disparage the Executive, either orally or in writing, at any time; provided that they may confer in confidence with the Company’s and their legal representatives and make truthful statements as required by law. (h) Prior to accepting other employment or any other service relationship during the Restricted Period, the provisions Executive shall provide a copy of this Section 5(a) shall be deemed waived 7 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any employer or person with respect to which the Executive;Executive discusses potential employment or any other service relationship. (bi) solicit any Person who is or, within In the prior twelve (12) months, was, or whose Affiliate is or, within event the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes terms of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) 7 shall be entitled to temporary and permanent injunctive relief from a determined by any court of competent jurisdictionjurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, without posting any bond or other security and without it will be interpreted to extend only over the necessity maximum period of proof of actual damage, in addition to, and not in lieu of, such other remedies as time for which it may be available enforceable, over the maximum geographical area as to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof which it may be reformed so that it is enforceable enforceable, or to the maximum extent permitted in all other respects as to which it may be enforceable, all as determined by law. If such court in such action. (j) As used in this Section 7, the term “Company” shall include the Company, its parent, related entities, and any of the provisions of this Section 5 are determined to be wholly its direct or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionindirect subsidiaries.

Appears in 2 contracts

Samples: Employment Agreement (Summit Midstream Partners, LP), Employment Agreement (Summit Midstream Partners, LP)

Restrictive Covenants. The Executive (a) In consideration of the benefits received in connection with the transactions contemplated hereby, and such other good and valuable consideration, the receipt and sufficiency of which is acknowledged, (i) each Seller Party agrees that he or she that, for the period beginning on the Effective Date and ending five years after the Effective Date (the “Noncompete Period”), such Seller Party shall not, during the Non-Compete Periodand shall cause Altitude Edge and Peak PACE not to, directly or indirectly own, manage, control, participate in, consult with, render services for, operate or in any manner engage (other than including individually or in association with any Person) in any business anywhere in the world that, directly or indirectly, has as a business purpose or conducts any activity which is or may reasonably be construed to be competitive with the business of Parent, the Purchaser or any of their Subsidiaries as conducted at any time prior to or during the Noncompete Period, and (ii) each of Parent and the Purchaser agrees that, for the Noncompete Period, each of Parent and the Purchaser shall not directly or indirectly own, manage, control, participate in, consult with, render services for, operate or in any manner engage (including individually or in association with any Person) in any business anywhere in the world that, directly or indirectly, has as a business purpose or conducts any activity which is or may reasonably be construed to be competitive with the businesses of Altitude Edge or Peak PACE as currently conducted. (b) During the Noncompete Period, each Seller Party shall not directly or indirectly (whether individually or through another Person) (i) call on or solicit any Person who or which is, at that time, or has been within two years prior thereto, a customer of Parent, the Purchaser or any of their Subsidiaries; (ii) solicit the employment of or hire any Person who at the time of such solicitation or hiring or who within one year prior thereto, is or was employed by Parent, the Purchaser or any of their Subsidiaries on a full or part-time basis; (iii) on such Seller Party’s behalf, or on behalf of or at any competitor, call upon any Person as a prospective acquisition candidate who was, to the request knowledge of such Seller Party, either called upon by Parent, the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company Purchaser or any of its their Subsidiaries engages as a prospective acquisition candidate or was the subject of an acquisition analysis by Parent, the Purchaser or any of their Subsidiaries; or (a “Competitive Business”); providediv) disparage, defame or discredit Parent, the Purchaser or any of their Subsidiaries or engage in any activity which would have the effect of disparaging, defaming or discrediting Parent, the Purchaser or any of their Subsidiaries. (c) Each Seller Party acknowledges that ownership the restrictions contained in this Section 4.4 are reasonable and necessary to protect the legitimate interests of less than one percent (1%) of Parent, the outstanding stock of Purchaser and their Subsidiaries. Each Seller Party acknowledges that any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided4.4 will result in irreparable injury to Parent, furtherthe Purchaser and their Subsidiaries and agrees that Parent and the Purchaser shall be entitled to preliminary and permanent injunctive relief, thatwithout the necessity of proving actual damages, providing investment banking or legal services to a Competitive Business as well as an independent consultantequitable accounting of all earnings, independent advisor or independent representative shall not be deemed to be a profits and other benefits arising from any violation of this Section 5 solely 4.4 by reason thereof so long as providing such services is not the primary duties or business activities of such individual; providedSeller Party, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) which rights shall be deemed waived with respect cumulative and in addition to any other rights or remedies to which Parent or the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to Purchaser may be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)entitled. (d) Notwithstanding anything to Each of Parent and the contrary Purchaser acknowledges that the restrictions contained in this Section 5, with respect 4.4 are reasonable and necessary to protect the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any legitimate interests of the Mexican Subsidiaries Shareholders. Each of Parent and the Company engages. The Executive Purchaser acknowledges and agrees that: (1) the time and geographical scope of the restrictions that any violation of this Section 5 are reasonable; (2) 4.4 will result in irreparable injury to the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents Shareholders and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) Shareholders shall be entitled to temporary preliminary and permanent injunctive relief from a court of competent jurisdictionrelief, without posting any bond or other security and without the necessity of proof proving actual damages, as well as an equitable accounting of actual damageall earnings, in addition to, profits and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If benefits arising from any of the provisions violation of this Section 5 are determined 4.4 by Parent or the Purchaser, which rights shall be cumulative and in addition to be wholly any other rights or partially unenforceable, remedies to which the Executive hereby agrees that this Agreement or any provision hereof Shareholders may be reformed so entitled. (e) In the event that it is enforceable any covenant contained in this Section 4.4 should ever be adjudicated to exceed the maximum extent time, geographic, product or service, or other limitations permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable applicable Law in any jurisdiction, then any court is expressly empowered to reform such determination covenant, and such covenant shall not be a bar deemed reformed, in such jurisdiction to the maximum time, geographic, product or service, or other limitations permitted by applicable Law. The covenants contained in any way diminish the Company’s right to enforce this Section 4.4 and each provision thereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Tabula Rasa HealthCare, Inc.), Asset Purchase Agreement (Tabula Rasa HealthCare, Inc.)

Restrictive Covenants. The Executive agrees that 11.1 Each of the Founders hereby undertakes to the Purchaser, the Company and any other member of the Purchaser’s Group (with the intention of assuring to the Purchaser the full benefit and value of the goodwill and connections of the Company and as a constituent part of the agreement for the sale of the Sale Shares, the Deferred Shares, the Residual Shares and the Option Shares) that, except with the written consent of the Purchaser he will not himself, either alone or she shall notjointly with others, during the Non-Compete Periodwhether as principal, agent, manager, shareholder, independent contractor, consultant or in any other capacity, directly or indirectly through any other person, for his own benefit or that of others at any time: (a) during the Restricted Period engage in or carry on or be concerned or interested in any Restricted Business within the Restricted Area in competition with the Company (other than as a holder for investment of no more than 3 per cent of any class of shares or securities dealt in on behalf of a recognised stock exchange); or (b) during the Restricted Period canvass or solicit or approach or cause to be canvassed, solicited or approached any person who shall at any time within the request year preceding Completion have been a client or customer, prospective client or customer, representative or agent of the Company or its Subsidiaries):in the habit of dealing with the Company for the purpose of offering that person goods or services which are of the same type as or similar to any goods or services supplied by the Company at Completion; (ac) engage in, have an interest in, during the Restricted Period solicit or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, entice away from the Company or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, knowingly encourage any business or organization, employee who is engaged in a business that is competitive with managerial, supervisory, technical or sales capacity by, or engaged as a business in which consultant to the Company to leave the Company (whether or any not such person would commit a breach of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely contract by reason thereof; provided, further, that, providing investment banking of leaving such employment or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executiveengagement); (bd) solicit during the Restricted Period interfere or seek to interfere with the continuance of supplies to the Company from any Person person who is or, shall at any time within the prior twelve year preceding Completion have been supplier of goods or services to the Company; or (12e) months, was, or whose Affiliate is or, within the prior twelve except (12i) months, was to perform duties under a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does service contract with the Company or any member of its Subsidiaries, the Purchasers Group or enter into or seek (ii) to enter into any agreement discuss with other Sellers a Claim duly notified by the Purchaser in accordance with Clause 9.2 (but only to the extent that the Warrantors are in possession of such agreement is information at Completion), hereafter make use of a nature that is related or disclose or divulge to the business in which the Company any person (other than to officers or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries employees of the Company engages. The Executive acknowledges and agrees that: whose province it is to know the same) any information (1) other than any information properly available to the time and geographical scope public (otherwise than, directly or indirectly, as a result of the restrictions a breach of this Section 5 are reasonable; (2clause 11.1(e)) the burden on the Executive or disclosed or divulged pursuant to an order of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction) relating to the Company, without posting any bond the identity of its customers and suppliers, its products, finances, contractual arrangements, business or other security and without the necessity method of proof of actual damagebusiness; or (f) if, in addition toconnection with the business and affairs of the Company it shall have obtained confidential information belonging to any third party under an agreement purporting to bind the Company which contained restrictions on disclosure, it will not at any time infringe such restrictions; or (g) in relation to any trade, business or company use a trade name, trade or service xxxx, design or logo including the words “Active Hotels” or any words confusingly similar thereto in such a way as to be capable of or likely to be confused with any trade name, trade or service xxxx, design or logo used by the Company (whether registered or not) at Completion, EXCEPT THAT nothing in this clause 11.1 shall operate to restrict Xxxxxx Xxxxxxxxx from being involved in the running, operation, management, ownership and not sale of hotels. 11.2 Each of the covenants contained in lieu of, clause 11.1 is entirely separate and severable and enforceable accordingly. Each of such other remedies covenants is considered fair and reasonable in all the circumstances by the parties but in the event that any such restriction shall be found to be void or ineffective but would be valid and effective if some part thereof were deleted or the duration or area of application reduced such restriction shall apply with such modification as may be available necessary to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that make it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionvalid and effective.

Appears in 2 contracts

Samples: Share Purchase Agreement, Share Purchase Agreement (Priceline Com Inc)

Restrictive Covenants. The Executive Principal agrees that he or she shall not, during for a period of two years starting on the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):Effective Date: (a) He will not, directly or indirectly, engage in, have an interest invest in, own, manage, operate, finance, control, or otherwise participate in the ownership, management, operation, financing, or control of, be employed by (whether as an ownerby, operator, partner, member, manager, employee, officer, director, consultant, advisorassociated with, or representative)in any manner connected with, provide consulting or management services lend his name to, or permit his render services or her name to be used advice to, any Person whose products or activities compete, in connection whole or in part, directly or indirectly, with the activities ofBusiness, any business anywhere within Canada or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveUnited States; (b) solicit He will not, directly or indirectly, for or on behalf of any Person, (i) induce or attempt to induce any Person who is orwas a dealer, customer, supplier, licensee, licensor, distributor, or who otherwise had any business relationship with any Seller at any time within the 10 years prior twelve to the Closing or who was actively being solicited by any Seller for business (12each, a "Covered Counterparty") monthsto terminate such Covered Counterparty's relationship with Spartan, was(ii) in any way interfere with the relationship between Spartan and any such Covered Counterparty, or whose Affiliate is or, within (iii) solicit or accept the prior twelve (12) months, was a customer business of the Company or any Covered Counterparty for purposes of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does competing with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such PersonBusiness; orand (c) contactHe will not, approach directly or solicit indirectly, for the purpose or on behalf of offering employment any Person, (i) induce or attempt to or hiring or retaining, or actually hire or retain induce any Person who is was an employee of any Seller at any time within the one year period prior to Closing (each, a "Covered Employee") to terminate such Covered Employee's employment with Spartan, (ii) in any way interfere with the relationship between Spartan and any such Covered Employee, or was employed (iii) hire or retained by the Company or its Affiliates engage as an employee during independent contractor any such Covered Employee for any purpose, without the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding prior written consent of Spartan. Notwithstanding the foregoing, general solicitations of employment published the restrictions set forth in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors this Section 1(c) shall not be deemed apply with respect to constitute solicitation for purposes of this Section 5(c)a Covered Employee whose employment was terminated by Spartan. (d) Notwithstanding anything in this Agreement to the contrary contrary, no covenants or other restriction in this Section 5, Agreement shall apply with respect to the country ownership of Mexico, this Section 5 will only apply a publicly traded corporation or other entity provided that Principal (and therefore will be limiteda) to activities that are competitive with the businesses in which any owns less than 2% of the Mexican Subsidiaries outstanding publicly traded interests, and (b) is not an officer or director of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionentity.

Appears in 2 contracts

Samples: Asset Purchase Agreement, Asset Purchase Agreement (Spartan Motors Inc)

Restrictive Covenants. The In addition to any other obligation of the Executive under any other agreement with the Company, in order to assure that the Company will realize the benefits of this Agreement and in consideration of the employment set forth in this Agreement, the Executive agrees that he or she shall not, not during the Non-Compete Employment Period and for a period of six (6) months (the “Restricted Period, directly or indirectly (other than on behalf of or at ”) from the request termination of the Company or its Subsidiaries):Employment Period: (a) engage inDirectly or indirectly, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, joint venturer, member, manager, employee, officer, director, employee, consultant, advisoragent, independent contractor, stockholder or representative)in any other capacity of any company or business, provide consulting or management services to, or permit his or her name to be used engage in connection with the activities of, any business activity in any state in the United States or organization, engaged in a business that is competitive with a business any other country in which the Company (i) is qualified to do business on the date of termination of the Employment Period, or any (ii) has planned (pursuant to a plan approved by the Board of its Subsidiaries engages (a “Competitive Directors) to be qualified to do business, which is directly or indirectly in competition with the Company Business”); provided, that however, that, the beneficial ownership of less than one percent (1%) 5% of the outstanding shares of stock of any publicly corporation having a class of equity securities actively traded corporation on a national securities exchange or over-the-counter market shall not be deemed deemed, in and of itself, to be a violation violate the prohibitions of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveSection; (b) solicit Directly or indirectly (i) induce any Person who person which is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any subsidiary or affiliate of its Subsidiaries the Company on the date of the termination of the Employment Period to patronize any business directly or persuade indirectly in competition with the Company Business; (ii) canvass, solicit or attempt to persuade accept from any such Person not to be person that is a customer of the Company or any subsidiary or affiliate of its Subsidiaries the Company on the date of the termination of the Employment Period, any such competitive business, or (iii) request or advise any person that is a customer of the Company Business on the date of the termination of the Employment Period to reduce the amount of withdraw, curtail, or cancel any such customer’s business that such customer does with the Company or any affiliate or subsidiary of its Subsidiariesthe Company; (c) Directly or indirectly employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any subsidiary or affiliate of its Subsidiaries engagethe Company on the date of the termination of the Employment Period or within six (6) with, months prior to the Executive’s knowledgedate of termination of the Employment Period, or in any manner seek to induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c).employment; (d) Notwithstanding anything to For purposes of this Agreement, “Company Business” shall mean providing online advertising services and certain related consumer services which includes search engine marketing, affiliate marketing, online lead generation, online dating, and online education.. (e) The Executive agrees and acknowledges that the contrary restrictions contained in this Section 5, with respect 18 are reasonable in scope and duration and are necessary to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of protect the Company engagesafter the Commencement Date. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions If any provision of this Section 5 are reasonable; (2) 18 as applied to any party or to any circumstance is adjudged by a court to be invalid or unenforceable, the burden on same will in no way affect any other circumstance or the Executive validity or enforceability of complying with this Agreement. If any such provision, or any part thereof, is held to be unenforceable because of the restrictions duration of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision, and/or to delete specific words or phrases, and in its reduced form, such provision shall then be enforceable and shall be enforced. The parties agree and acknowledge that the breach of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of will cause irreparable damage to the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s upon breach of the provisions any provision of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breachSection, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdictionrelief, specific performance or other equitable relief; provided, however, that this shall in no way limit any other remedies which the Company may have (including, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceablelimitation, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionseek monetary damages).

Appears in 2 contracts

Samples: Employment Agreement (Think Partnership Inc), Employment Agreement (Think Partnership Inc)

Restrictive Covenants. The Executive If the employment of the Employee is terminated for any reason (including voluntary resignation), then the Employee agrees that for a period of two (2) years thereafter, he or she shall will not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (ai) engage in, have an interest inalone or for his own account, or otherwise be employed by (whether as an ownera officer, operatordirector, shareholder, partner, member, managertrustee, employee, officer, director, consultant, advisor, agent or representative)any other capacity of any corporation, provide consulting or management services topartnership, joint venture, trust, or permit his other business organization or her name entity, encourage, support, finance, be engaged in, interested in, or concerned with (x) any of the companies and entities described on Schedule I hereto, except to be used the extent that any activities in connection with therewith are confined exclusively outside the activities ofContinental United States, or (y) any other funeral, cemetery or other death care business having an office or organizationbeing conducted within a radius of fifty (50) miles of any funeral home, engaged in a cemetery or other death care business that is competitive with a business in which owned or operated by the Company or any of its Subsidiaries engages subsidiaries at the time of such termination; (ii) induce or assist anyone in inducing in any way any employee of the Company or any of its subsidiaries to resign or sever his or her employment or to breach an employment contract with the Company or any such subsidiary; or (iii) own, manage, advise, encourage, support, finance, operate, join, control, or participate in the ownership, management, operation, or control of or be connected in any manner with any business which is or may be in the funeral, mortuary, crematory, cemetery or burial insurance business or in any business related thereto (x) as part of any of the companies or entities listed on Schedule I, or (ii) otherwise within a “Competitive Business”); providedradius of fifty (50) miles of any funeral home, that cemetery or other death care business owned or operated by the Company or any of its subsidiaries at the time of such termination. Notwithstanding the foregoing, the above covenants shall not prohibit the passive ownership of less not more than one percent (1%) of the outstanding stock voting securities of any publicly traded corporation entity. The foregoing covenants shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking held invalid or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination unenforceable because of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions territory or actions subject hereto or restricted hereby, or the period of this Section 5 time within which such covenants respectively are reasonable; (2) operative, but the burden on maximum territory, the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens action subject to breach the provisions of this Section 5 such covenants and the Company (period of time they are enforceable are subject to any determination by vote a final judgment of a majority of any court which has jurisdiction over the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits parties and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionsubject matter.

Appears in 2 contracts

Samples: Employment Agreement (Carriage Services Inc), Employment Agreement (Carriage Services Inc)

Restrictive Covenants. The Executive Employee acknowledges and agrees that (i) as an employee of the Company, he has possessed and learned, and shall in the future possess and learn, valuable trade secrets and other confidential or she proprietary information relating to the Company and its Affiliates and their businesses and properties, (ii) Employee’s services to the Company are unique in nature, (iii) the Company’s business is national in scope, and (iv) the Company would be irreparably damaged if the Employee were to provide services to any other person or entity in violation of the restrictions contained in this Agreement. Accordingly, as an inducement for the Company to enter into this Agreement, Employee agrees that during the period that he is employed by the Company and for a period of three (3) years thereafter (such period being referred to herein as the “Restricted Period”), Employee shall not, during the Non-Compete Period, directly or indirectly (indirectly, either for himself or for any other than on behalf of person or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by entity (whether as an ownera shareholder, operatormember, equityholder, officer, director, employee, partner, member, manager, employeetrustee, officeragent, director, consultant, advisor, representative or representative), provide consulting or management services to, or permit his or her name to be used otherwise): (a) take any action in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in Competing Business (as defined below) which might divert from the Company or its Affiliates any of its Subsidiaries engages opportunity which would be (a “Competitive Business”); provided, that ownership of less than one percent (1%) of at the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities time of such individual; providedaction) within the scope of their business, furtherincluding without limitation, thatowning any stock, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Companymembership or partnership interest or other equity interest in, the provisions of this Section 5(a) shall be deemed waived with respect to the Executivemanaging, controlling, rendering services, working or consulting for, or providing any financing or other assistance to, any Competing Business; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade induce any such Person not to be a customer of the Company person or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person entity who is or was employed has been a customer or retained by client of the Company or its Affiliates as an employee at any time during (i) the immediately preceding twelve period of 3 years prior to the Effective Date, (12ii) months the Employment Term, or (iii) the Restricted Period, to retain or employ the services of a Competing Business; (c) solicit or attempt to induce any person or entity who is or has been a customer, client, supplier or other business relation of the Company or its Affiliates, including independent sales organization owner, operator or agent, at any time during (i) the period of three (3) years prior to the Effective Date, (ii) the Employment Term, or (iii) the Restricted Period, to cease doing business with the Company or its Affiliates; (d) take any actions which are calculated or intended to persuade any Person not to continue to be employed person or retained by entity who is a director, manager, officer, employee or agent of the Company or its Affiliates or to terminate his or her employment association with the Company or its Affiliates; or (e) solicit or hire any person or entity who is a director, manager, officer, employee or agent of the Company to perform services with for any person or entity other than the Company or its Affiliates; provided, however, that notwithstanding nothing herein shall prohibit Employee from owning not more than 1% of the foregoing, general solicitations of employment published in a journal, newspaper outstanding stock or other publication equity interest of general circulation any publicly traded entity engaged in the Business, so long as Employee is merely a passive investor and not specifically directed towards has no role in the operation or management of such employees, consultants person or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)entity. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 2 contracts

Samples: Employment Agreement (Shift4 Payments, Inc.), Employment Agreement (Shift4 Payments, Inc.)

Restrictive Covenants. The Executive 20.1 BVI and BVI Existing Shareholders hereof acknowledge that the Preference Shareholders agrees to invest in the Company and become a Preference Shareholder on the basis of continued and exclusive services of and diligent devotion and commitment by BVI Existing Shareholders and BVI to the Group Companies, and agree that he or she shall not, during the Non-Compete Period, directly or indirectly (other Preference Shareholders should have reasonable assurance of such basis of investment. Each of BVI Existing Shareholders and BVI hereof jointly and severally undertakes to any Preference Shareholder who then holds no less than on behalf 5% percent of or at all the request issued and outstanding share capital of the Company on a fully-diluted and as-converted basis that neither he nor any of his Associates will directly or its Subsidiaries):indirectly: (a) engage inUp to the last day of the 12th month after the Qualified IPO, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative( “Restriction Period”), provide consulting participate, assist, be concerned with, engaged or management services to, or permit his or her name to be used in connection with the activities ofinterested in, any business or organizationentity in any manner, engaged directly or indirectly, which is in a competition with the business that is competitive with a business in which carried on by any Group Company at any time during the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveRestriction Period; (b) during the Restriction Period, solicit in any Person manner any person who is or, within or has been during the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was Restriction Period a customer or client of the any Group Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to such person any goods or services similar to or hiring competing with any of the businesses conducted by any Group Company at any time during the Restriction Period; (c) during the Restriction Period, solicit or retainingentice away, or actually hire endeavour to solicit or retain entice away, any Person who is employee or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade officer of any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c).Group Company; (d) Notwithstanding anything at any time disclose to any person, or use for any purpose, any information concerning the contrary in this Section 5business, with respect accounts, finance, transactions or Intellectual Property rights of any Group Company or any trade secrets or confidential information of or relating to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries Group Companies; (e) during the Restriction Period, none of BVI Existing Shareholders or BVI may hold 5% or more shares in another business or entity (regardless of whether such business or entity is in competition, directly or indirectly, with the business carried on by any Group Company), unless a prior written consent is obtained from Preference Shareholder(s) then holding no less than 51% of the issued Series A Preference Shares; except for the business or entity where the BVI Existing Shareholders or BVI or their Associate does not act as an senior management officer, a director, or otherwise actively participate in the management, and in such case they may hold up to 20% of the Shares or equity interests in such business or entity, except for the investment and directorship in Sichuan Nanshan Bridge Co., Ltd., Chengdu Noah Electronic Co., Ltd. and Shenzhen Noah Industrial Co., Ltd. as being disclosed to Baring and Xxxxxx Brothers. 20.2 Each undertaking in paragraphs (a), (b), (c) (d) and (e) of this Clause 20.1 shall be treated as independent of the other undertakings so that, if any of them is held to be invalid or unenforceable for any reason, the remaining undertakings shall be valid to the extent that they are not affected. 20.3 Each of BVI Existing Shareholders and BVI hereby expressly acknowledges and declares that it has duly considered the undertakings set out in Clause 20.1 and considers that they are reasonable in the circumstances, and warrants and undertakes to the Preference Shareholders that it shall not challenge or query the validity and enforceability of these undertakings. 20.4 Without prejudice to any rights or remedies of the Preference Shareholders under law, if any of BVI Existing Shareholders or BVI (“Defaulter”) is in breach of Clause 20.1(c), and more than 10 employees and/or officers of any Group Company engagesare solicited or enticed away, such Defaulter shall be individually liable to pay to the Preference Shareholders on demand liquidated damages in the sum of US$ 5 million. The Executive acknowledges parties agree that this sum is paid as liquidated damages and agrees that: (1) the time not as penalty, and geographical scope agree that this sum is a genuine pre-estimate in good faith of the loss suffered by the Preference Shareholders in such circumstances. 20.5 During the period that Baring holds any Preference Shares of the Company, or before a Qualified IPO, whichever is earlier, Baring and Xxxxxx Brothers should not directly or indirectly make any investment into the following companies, except that Baring’s investee enterprises make further investment into such companies. It being understood that Xxxxxx Brothers’s undertaking under Section 20.5 does not in any way place restrictions on the activities of Xxxxxx Brothers Group at large, and investment activities of Xxxxxx Brothers Group (except Xxxxxx Brothers) will not under any circumstance be found in violation of this Section 5 are reasonable; 20.5. (2a) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; Organizer ( ) (3b) the general public policy is not harmed by the restrictions of this Section 5; and Besta ( ) (4c) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees Instant dict ( ) (xd) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, Meigin ( ) (ye) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company Cooltec ( ) (by vote of a majority of the members of the Boardf) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and Hi-tech wealth ( ) (zg) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company Lenovo ( ) (by vote of a majority of the members of the Boardh) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company BBK ( ) (by vote of a majority of the members of the Boardi) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionOhayo ( ) (o) Readboy ( ) (p) Dbolo ( ) (q) X.xx ( ) (r) Timetop ( ) (s) Worthy ( ) (v) Vtech ( )

Appears in 2 contracts

Samples: Shareholder Agreements, Shareholder Agreement (Noah Education Holdings Ltd.)

Restrictive Covenants. The Executive agrees that he or she shall not(a) For a period of [***] following the Closing Date (the “Restricted Period”), during the Non-Compete Periodneither Seller nor its controlled Affiliates shall, directly or indirectly, own, invest in, design, develop, manufacture, market, sell or license any [***], or manage, consult, direct any business activity involving any [***]; provided, however, this Section 4.3(a) foregoing will not: (i) prohibit Seller or any of its controlled Affiliates from directly or indirectly (other acquiring or owning equity interests of a public company constituting less than on behalf of or at the request 3% of the Company outstanding voting power thereof; (ii) prohibit Seller or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used controlled Affiliates from performing its obligations in accordance with any agreement entered into in connection with the activities oftransactions contemplated by this Agreement, including the Transition Services Agreement, or (iii) apply to any unaffiliated third party that acquires Seller, any business or organization, engaged in a business that is competitive with a business in which the Company controlled Affiliate of Seller or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor their respective assets or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;businesses. (b) solicit During the Restricted Period, neither Purchaser nor its controlled Affiliates shall, directly or indirectly, own, invest in, design, develop, manufacture, market, sell or license any Person who is or, within the prior twelve (12) months, was[***], or whose Affiliate is ormanage, within the prior twelve consult, direct any business activity involving any [***]; provided, however, this Section 4.3(b) foregoing will not: (12i) months, was a customer of the Company prohibit Purchaser or any of its Subsidiaries controlled Affiliates from directly or persuade indirectly acquiring or attempt to persuade any such Person not to be owning equity interests of a customer public company constituting less than 3% of the Company outstanding voting power thereof; (ii) prohibit Purchaser or any of its Subsidiaries controlled Affiliates from directly or to reduce indirectly performing any such activities for or in respect of the amount Specified Product, or any other product currently owned, licensed or marketed by Purchaser as of business that such customer does the date of this Agreement; or (iii) prohibit Purchaser or its controlled Affiliates from performing its obligations in accordance with any agreement entered into in connection with the Company or any of its Subsidiariestransactions contemplated by this Agreement, or enter into or seek to enter into any agreement (to including the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orTransition Services Agreement. (c) contact, approach or solicit Each of Purchaser and Seller (for itself and on behalf of its controlled Affiliates) agrees that the purpose duration and geographic scope of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary covenants set forth in this Section 54.3 are reasonable. In the event that any court determines that the duration or the geographic scope, with respect or both, are unreasonable and that such provision is unenforceable to any extent, the country Parties agree that the provision shall remain in full force and effect for the greatest time period and in the greatest area that would not render it unenforceable. The Parties agree that the restrictions set forth in Section 4.3 are reasonable in all respects and are necessary to protect the respective interests of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive each of the Parties in connection with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of transactions contemplated by this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionAgreement.

Appears in 1 contract

Samples: Asset Purchase Agreement (Chimerix Inc)

Restrictive Covenants. The Executive agrees that he or she shall not, during In order to preserve and protect the Non-Compete Period, directly or indirectly (other than on behalf of or at the request goodwill and value of the Company or its Subsidiaries):Company’s business, operations, relationships and confidential information to which you had access during your employment, you hereby agree as follows: (a) engage inDuring the period beginning on the Termination Date and ending on the first (1st) anniversary thereof, have an interest inyou will not, either acting jointly or otherwise be employed by (whether as an ownerindividually, operatordirectly or indirectly, partner, member, manager, employee, officer, director, consultant, advisor, induce or representative), provide consulting attempt to induce any employee or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer consultant of the Company or any of its Subsidiaries affiliates to leave such entity’s employ or persuade consultancy, or attempt to persuade in any way interfere with the relationship between the Company or its affiliates and any of their employees or consultants. (b) During the period beginning on the Termination Date and ending six (6) months thereafter, you will not (i) directly or indirectly own any interest in, manage, control, participate in (whether as an officer, director, employee, partner, member, stockholder, agent, representative or otherwise), render services for, accept compensation from, or in any other manner engage in any business (including any new business started by you, either alone or with others) that competes with the Company throughout the world, or (ii) contact or solicit any customers, suppliers, vendors, licensees, licensors or other persons who have a business relationship with the Company (each, an “Existing Business Relationship”) for the purposes of (x) diverting any existing or future business from the Company, (y) causing, inviting or encouraging any such Person not Existing Business Relationship to be a customer alter or terminate his, her or its business relationship with the Company, or (z) interfering with any aspect of the relationship between any such Existing Business Relationship and the Company (including, without limitation, making any negative statements or communications about the Company or any of its Subsidiaries officer’s directors, employees or affiliates to reduce the amount of business that any person connected with such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orExisting Business Relationship. (c) contactFor the avoidance of doubt, approach or solicit for the purpose of offering your confidentiality and invention ownership and assignment obligations to which you were subject during your employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations shall survive indefinitely following your termination of employment published in a journalaccordance with their terms, newspaper or other publication of general circulation including those obligations set forth in your Employment Agreement and not specifically directed towards such employees, consultants or independent contractors shall not be deemed as imposed upon you pursuant to constitute solicitation for purposes of this Section 5(c)Company policies and your fiduciary duties. (d) Notwithstanding anything to The Company would suffer irreparable harm from a breach of any of the contrary covenants or agreements contained in this Section 5, with respect to 6. In the country event of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any an alleged or threatened breach by you of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable6, the Executive hereby agrees Company or its successors or assigns may, in addition to all other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof, in each case without the requirement of posting a bond or proving actual damages, and the restricted period, as applicable, described above will be tolled until such alleged breach or violation is resolved. You agree that the restrictions in this Agreement or any provision hereof may be reformed so that it is enforceable to Section 6 are reasonable protections under the maximum extent permitted by lawcircumstances of the payment of the amounts set forth herein. If If, at the time of enforcement of any of the provisions of this Section 5 6, a court holds that the restrictions stated herein are determined to unreasonable under the circumstances then existing, you agree that the maximum period, scope or geographical area reasonable under such circumstances will be wholly substituted for the stated period, scope or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionarea.

Appears in 1 contract

Samples: Separation and Release Agreement (Global Eagle Entertainment Inc.)

Restrictive Covenants. The Executive Each party hereto hereby agrees that he or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request covenants set forth in this Section 7.04 are a material and substantial part of the Company or its Subsidiaries):transactions contemplated by this Agreement. (a) engage inUntil two years after the Closing Date, have an interest ineach Restricted Company Stockholder agrees that he, she or it will not, anywhere in the world (the “Territory”), unless acting for the Surviving Corporation, Parent or their Affiliates or in accordance with the Surviving Corporation’s or Parent’s prior written consent: (i) (directly or indirectly) own, manage, operate, join, control, finance or participate in the ownership, management, operation, control or financing of, or otherwise be employed by (whether connected as an owner, operator, partner, member, manager, employee, officer, director, employee, principal, agent, representative, consultant, advisorinvestor, owner, partner, manager, joint venturer or representative), provide consulting or management services tootherwise with, or permit its, his or her name to be used by or in connection with the activities ofwith, any business or organizationenterprise engaged anywhere in the Territory in the business conducted by Parent, the Company, or any of their Affiliates on the Closing Date and, with respect to Restricted Company Stockholders who become employees of Parent, the Surviving Corporation or any of their Affiliates any of the businesses engaged in by Parent, the Surviving Corporation or any of their Affiliates either during his employment or at the time of its termination; (ii) call on or solicit any person who or which is, at that time, or has been within three years prior thereto, a customer of the Company or the Surviving Corporation with respect to any business that is competitive with a business in which of Parent, the Company or any of their Affiliates covered by clause (i) above; (iii) solicit the employment of or hire any person who at the time of such solicitation or hiring or who within 90 days prior thereto, is or was employed by Parent, the Company or any of their Affiliates on a full or part-time basis; or (iv) on his, her or its Subsidiaries engages (behalf, or on behalf of any competitor, call upon any person as a “Competitive Business”); providedprospective acquisition candidate who was called upon by the Company as a prospective acquisition candidate or was the subject of an acquisition analysis by the Company on or prior to the Closing Date. Such Restricted Company Stockholder shall immediately cease all contact with any prospective acquisition candidate upon being informed, in writing, that ownership of less than one percent the Company had so called upon such candidate or made an acquisition analysis thereof. (1%b) of Notwithstanding the outstanding stock of any publicly traded corporation above, the foregoing covenant shall not be deemed to prohibit the Restricted Company Stockholders subject to this Section 7.04 from (i) acquiring as a passive investment not more than five percent of the outstanding voting capital stock of a competing business, whose stock is traded on a national securities exchange or through the automated quotation system of a registered securities association or (ii) conducting generalized solicitations for employees through the use of media advertisements or as hiring employees through the use of such solicitations. (c) Each Restricted Company Stockholder acknowledges that (a) the provisions of this Section 7.04 are reasonable and necessary to protect the legitimate interests of Parent and its Affiliates, (b) any violation of this Section 7.04 will result in irreparable injury to Parent and its Affiliates and that damages at law would not be reasonable or adequate compensation to Parent and its Affiliates for a violation of this Section 5 solely 7.04 and (c), Parent and its Affiliates shall be entitled to have the provisions of this Section 7.04 specifically enforced by reason thereof; providedpreliminary and permanent injunctive relief without the necessity of proving actual damages and without posting bond or other security as well as to an equitable accounting of all earnings, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a profits and other benefits arising out of any violation of this Section 5 solely by reason thereof so long as providing such services is not 7.04, including, without limitation, estimated future earnings. In the primary duties or business activities of such individual; provided, further, that, if the Board determines event that the provisions of this Section 5(a) 7.04 should not apply ever be deemed to exceed the Executive following the termination of the Executive’s employment time, geographic, product or any other limitations permitted by the Companyapplicable Law, the then such provisions of this Section 5(a) shall be deemed waived with respect reformed to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained maximum permitted by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)applicable Law. (d) Notwithstanding anything Parent and each Restricted Company Stockholder intends to and do hereby confer jurisdiction to enforce the contrary covenants set forth in this Section 5, with respect to 7.04 upon the country courts of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with any jurisdiction within the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damagescovenants. If the courts of any one or more of the provisions of this Section 5 are determined to be wholly such jurisdictions hold such covenants unenforceable in whole or partially unenforceablein part, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any intention of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, Parent and each Restricted Company Stockholder that such determination shall not be a bar to or in any way diminish adversely affect the Company’s right of Parent and its Affiliates to equitable relief and remedies hereunder in courts of any other jurisdiction as to breaches or violations of this Section 7.04, such covenants being, for this purpose, severable into diverse and independent covenants. (e) All information provided to third parties for evaluation of a potential transaction or transactions with the Company similar to the transactions contemplated by this Agreement is subject to a confidentiality agreement with third parties for a term of not less than two years and contain confidentiality, non-disclosure and non-solicitation obligations and give the Company the right to enforce require any such covenant in third party to return or destroy any other jurisdictioninformation disclosed to it pursuant to the terms of any such agreement. (f) Until two years after the Closing Date, One Equity Partners LLC will not solicit the employment of or hire any person set forth on Section 7.04 of the Disclosure Schedule.

Appears in 1 contract

Samples: Agreement and Plan of Merger (Medvest Holdings Corp)

Restrictive Covenants. The 14.1 You hereby undertake with the Evercore LLP and the other Members that you will not (without the prior written consent of the Executive agrees that he Committee) whether by yourself, through your employees or she shall notagents or otherwise howsoever and whether on your own behalf or on behalf of any other person, during the Non-Compete Periodfirm, company, or other organisation, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage infrom the date of this Deed until the Date of Outgoing and during the Restricted Period, have an interest in, in competition with the Evercore LLP or any member of the Evercore Group in the Prohibited Area be employed or engaged or otherwise be employed by interested in the provision of any Restricted Service. Nothing contained in this clause 14.1 (whether a) prohibits you from (i) investing, as an ownera passive investor, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business publicly held company provided that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that your beneficial ownership of less than one any class of such publicly held company’s securities does not exceed three percent (13%) of the outstanding stock securities of such class, (ii) entering the employ of any publicly traded corporation shall academic institution or governmental or regulatory instrumentality of any country or any domestic or foreign state, county, city or political subdivision, or (iii) providing services to a subsidiary or affiliate of an entity that controls a separate subsidiary or affiliate that provides any Restricted Services, so long as the subsidiary or affiliate for which you may be providing services is not itself providing Restricted Services and you are not, as an employee of such subsidiary or affiliate, engaging in activities that would otherwise cause such subsidiary or affiliate to be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveRestricted Services; (b) for so long as you are a Member, in competition with the Evercore LLP or any member of the Evercore Group in respect of any Restricted Service solicit business from or canvass or otherwise have dealings with any Person person, firm, company or organisation who is or, within or which at any time during the prior twelve continuance of Evercore LLP: (12i) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer client of the Company Evercore LLP or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer member of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such PersonEvercore Group; or (cii) contactwas negotiating with or contemplating doing business with the Evercore LLP or any member of the Evercore Group; and with whom or which, approach during such period, you have had any contact or solicit for the purpose of offering employment to involvement whether as a Member or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee of a member of the Evercore Group; (c) after the Date of Outgoing and during your Restricted Period, in competition with the Evercore LLP or any member of the Evercore Group in respect of any Restricted Service solicit business from or canvass or otherwise have dealings with any person, firm, company or organisation who or which: (i) at any time during the period of 2 years immediately preceding twelve the Date of Outgoing was a client of the Evercore LLP or any member of the Evercore Group; or (12ii) months at the Date of Outgoing was negotiating with or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services contemplating doing business with the Company Evercore LLP or its Affiliates; providedany member of the Evercore Group, that notwithstanding and with whom or which, during such 2 year period, you have had any contact or involvement whether as a Member or as an employee of a member of the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c).Evercore Group; (d) Notwithstanding anything from the date of this Deed until the Date of Outgoing and during the Restricted Period, solicit or entice away from or endeavour to solicit or entice away from the contrary Evercore LLP or any member of the Evercore Group any Member or any employee of any member of the Evercore Group whether or not such person would commit any breach of contract by reason of leaving the service of the relevant company. 14.2 While the restrictions contained in this Section 5clause 14 (on which you have had the opportunity to take independent advice, with respect as you hereby acknowledge) are considered by you to be reasonable in all the country of Mexicocircumstances, this Section 5 will only apply (and therefore will be limited) it is agreed that if any such restrictions, by themselves, or taken together, are adjudged to activities that are competitive with go beyond what is reasonable in all the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary circumstances for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach legitimate interests of the provisions of this Section 5 will cause the Company irreparable harm, which cannot Evercore LLP but would be adequately compensated by money damages, (y) adjudged reasonable if the Executive breaches part or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority parts of the members wording thereof were deleted or amended or qualified or the periods of the Board) seeks an injunction against wording were reduced or the Executiverange of products or area dealt with thereby were reduced in scope, there it is a reasonable probability of agreed that the Company’s eventual success on the merits and (z) if the Executive breaches relevant restriction or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any restrictions shall apply with such breach modification or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies modifications as may be available necessary to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly make it or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionthem valid and effective.

Appears in 1 contract

Samples: Members’ Agreement (Evercore Partners Inc.)

AutoNDA by SimpleDocs

Restrictive Covenants. The Executive Employee agrees with the Corporation that he will not for a period of three full years (36 months) measured from the date he ceases to be an officer, director, employee or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request consultant of the Company Corporation or its Subsidiaries):HouTex: (a) engage indirectly or indirectly, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, employee, consultant, advisor, proprietor, agent, independent contractor, stockholder or representative)holder of any other ownership interest in any company or business, provide consulting assist or management services toengage in any business activity in the State of Texas that is in Competition with the Business conducted by HouTex or the Corporation as of the date hereof, or permit his in any way participate in the financing, operation, management or her name to be used in connection with the activities control of, any business firm, partnership, corporation, entity or organization, engaged in a business that engages or participates in any business activity in the State of Texas that is competitive in Competition with a the business in which conducted by HouTex or the Company or any Corporation as of its Subsidiaries engages (a “Competitive Business”)the date hereof; provided, however, that the beneficial ownership of less than one five percent (15%) of the outstanding shares of stock of any publicly corporation having a class of equity shares actively traded corporation on a national securities exchange or over-the-counter market shall not be deemed deemed, in and of itself, to be a violation violate the prohibitions of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveSection; (b) solicit directly or indirectly (i) induce any Person who that is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of HouTex or The Corporation as of the Company date hereof to patronize any business in Competition with the Business conducted by HouTex or the Corporation; (ii) canvass, solicit or accept from any of its Subsidiaries or persuade or attempt to persuade any such Person not to be that is a customer of HouTex or the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledgeCorporation, any such PersonCompetitive business; oror (iii) request or advise any Person that is a customer of HouTex or the Corporation as of the date hereof to withdraw, curtail or cancel any such customer's business with HouTex or the Corporation. (c) contact, approach directly or solicit for the purpose of offering employment to or hiring or retainingindirectly employ, or actually hire knowingly permit any company or retain business directly or indirectly controlled by him, to employ, any Person who is or was employed by HouTex or retained by the Company Corporation at or its Affiliates as an employee during within six months prior to the immediately preceding twelve (12) months date hereof, or attempt in any manner solicit, encourage, or take any other action intended or seeking to persuade any induce such Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionemployment;

Appears in 1 contract

Samples: Employment Agreement (Metal Management Inc)

Restrictive Covenants. The Executive As an inducement to Buyer entering into this Agreement and the transactions contemplated hereby, and to more effectively protect the value and goodwill of the Business, each Seller Party agrees that he or she to the restrictive covenants and other provisions contained in this Section 9.E. as follows: (i) During the period commencing on the date hereof and expiring on the third year anniversary of the Closing (the “Restricted Period”), each Seller Party shall not, during and shall cause its affiliates not to: (a) engage, or assist others in engaging, in the Non-Compete PeriodBusiness or the business of Buyer as it operates on the date hereof anywhere in the United States of America, (b) own or hold an interest in any entity that engages directly or directly in the Business or the business of Buyer as it operates on the date hereof anywhere in the United States of America in any capacity, or (c) cause, induce, or encourage any current or former client, customer, or supplier of the Business or Buyer, or any other person that a material relationship with the Business or Buyer, to terminate or modify such person’s relationship with the Business or Buyer, as applicable; provided, however, that (1) any Seller Party may own, directly or indirectly indirectly, solely as an investment, securities of any entity traded on any national securities exchange if such Seller Party is not a controlling person of, or a member of a group that controls, such entity, and does not, directly or indirectly, own five percent or more of any class of securities of such entity and (other than on behalf of or at 2) Xxxxx may freely engage in all business activities associated with Invisible Dynamics LLC, a brand consultancy delivering brand, ecommerce, retail and marketing solutions for the request of fashion, beauty, wellness, hospitality and lifestyle industries. (ii) During the Company or Restricted Period, each Seller Party shall not, and shall cause its Subsidiaries): controlled affiliates not to: (a) engage inhire or solicit any current or former employee or service provider of the Business or of Buyer or its affiliates, have an interest in(b) induce or encourage any such employee or service provider to leave the employment or service of Buyer or its affiliates, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services c) attempt to, or permit his or her name to be used in connection with the activities of, take any business or organization, engaged in a business other action that is competitive with intended to, cause the actions set forth in clauses (a) and (b), except that a business in Seller Party may hire pursuant to a general solicitation which the Company is not directed specifically to any such employee or any of its Subsidiaries engages service provider. (iii) Each Seller Party acknowledges that a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation breach of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services 9.E. would give rise to a Competitive Business as an independent consultant, independent advisor or independent representative shall irreparable harm to Buyer for which monetary damages would not be deemed to be an adequate remedy, and hereby agrees that in the event of a violation breach or threatened breach by any Seller Party of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not obligations, Buyer shall, in addition to any other rights and remedies that may be a customer of the Company or any of its Subsidiaries or available, be entitled to reduce the amount of business that such customer does with the Company or any of its Subsidiariesequitable relief, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as including seeking an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper injunction or other publication specific performance, from a court of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)competent jurisdiction. (div) Notwithstanding anything to Recognizing the contrary specialized nature of the Business, each Seller Party acknowledges and agrees that the duration, geographic scope, and activity restrictions in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 9.E. are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed , supported by the restrictions of this Section 5; adequate consideration, and (4) the restrictions of this Section 5 are necessary for the protection of the Company Business and interests of Buyer and its Subsidiariesaffiliates. The Executive further acknowledges parties hereto acknowledge and agrees (x) agreed that the Executive’s breach restrictions set forth in this Section 9.E. are completely severable and independent, and any invalidity or unenforceability of this Agreement with respect to any one restriction herein shall not render this Agreement unenforceable as applied to any one or more of the provisions other restrictions herein. If any court determines that any provision of this Section 5 will cause 0.X.xx unenforceable, such court shall have the Company irreparable harmpower to reduce the duration or scope of such provisions, which cannot be adequately compensated by money damagesas applicable, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executiveterminate such provision until, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executivein such reduced form, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) provision shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionenforceable.

Appears in 1 contract

Samples: Asset Transfer Agreement (Veritas Farms, Inc.)

Restrictive Covenants. The Executive In order to assure that Republic will realize the benefits of the transactions contemplated hereby, the Shareholder agrees with Republic that he or she shall will not, : (a) during the NonRestricted Period (defined below), other than as an employee of Republic or its Affiliates, directly or indirectly, alone or as a partner, joint venturer, officer, director, member, employee, consultant, agent, independent contractor or stockholder of, or lender to, any company or business, engage in selling, leasing, or servicing any new or used vehicles (the "Auto Business") or in the wholesale or retail supply of parts with respect thereto (the "Parts Business") anywhere in the Restricted Territory (defined below); provided, however, that, the beneficial ownership of less than five percent (5%) of the shares of stock of any corporation having a class of equity securities actively traded on a national securities exchange or over-Compete the-counter market shall not be deemed, in and of itself, to violate the prohibitions of this Section; (b) during the Restricted Period, directly or indirectly (other than on behalf i) induce any Person which is a customer or supplier of any Acquired Entity, Republic or at the request any Affiliate of the Company Acquired Entities or its Subsidiaries): (a) engage in, have an interest in, Republic to patronize any business directly or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used indirectly in connection competition with the activities ofAuto Business or the Parts Business conducted by the Acquired Entities, any business or organization, engaged in a business that is competitive with a business in which the Company Republic or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) Affiliate of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereofAcquired Entities or Republic; provided(ii) canvass, further, that, providing investment banking solicit or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit accept from any Person who which is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company Acquired Entities, Republic or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer Affiliate of the Company Acquired Entities or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledgeRepublic, any such Personcompetitive business; oror (iii) request or advise any Person which is a customer or supplier of the Acquired Entities, Republic or any Affiliate of the Acquired Entities or Republic, or its or their successors, to withdraw, curtail or cancel any such customer's business with any such entity; (c) contactduring the Restricted Period, approach directly or solicit for the purpose of offering employment to or hiring or retainingindirectly employ, or actually hire knowingly permit any company or retain business directly or indirectly controlled by him, to employ, any Person person who is or was employed or retained by the Company Acquired Entities, Republic or its Affiliates as an employee during any Affiliate of the immediately preceding twelve (12) months Acquired Entities or attempt Republic at or within the then prior six months, or in any manner seek to persuade induce any Person not such person to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c).employment; (d) Notwithstanding anything to during the contrary Restricted Period, directly or indirectly, in this Section 5any way utilize, with respect to the country of Mexicodisclose, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses copy, reproduce or retain in which his possession any of the Mexican Subsidiaries Acquired Entities' proprietary rights or records of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is Acquired Entities or Republic, including, but not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens limited to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictioncustomer lists.

Appears in 1 contract

Samples: Merger Agreement (Republic Industries Inc)

Restrictive Covenants. The Executive agrees In order to assure that he or she shall not, during Nations will realize the Non-Compete Period, directly or indirectly (other than on behalf of or at the request benefits of the transactions contemplated hereby, the Company or its Subsidiaries):and each of, Olivxx Xxxxxxx, Xxchxxx X'Xxxxx xxx Jamex Xxxxxxx xxxee that he, will not: (a) engage infor a period of three (3) years following the termination of his employment with the Company, have an interest indirectly or indirectly, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, employee, consultant, advisoragent, independent contractor, or representative)security holder, provide consulting of any company or management services tobusiness, engage in, or permit his finance, or her name to be used in connection provide financial assistance with the activities ofrespect to, any business activity in the business of renting, selling, leasing, distributing, servicing or organizationrepairing new or used equipment, engaged spare parts and related supplies to industrial, manufacturing, or construction customers (the "Equipment Business") in a business that is competitive with a business any county in any state in the United States in which the Company NationsRent, Inc. or any of its Subsidiaries engages subsidiaries, successors, or assigns (a “Competitive Business”)collectively, the "Nations Companies") conducts such business at the time such person commences to engage in such activity; provided, however, that the beneficial ownership of less than one five percent (15%) of the outstanding stock any class of securities of any publicly entity having a class of equity securities actively traded corporation on a national securities exchange or over-the-counter market shall not be deemed deemed, in and of itself, to be a violation violate the prohibitions of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveSection; (b) for a period of three (3) years following the termination of his employment with the Company, directly or indirectly, (I) induce any customer acquired hereunder or any other customer of the Nations Companies to patronize any business which is directly or indirectly in competition with the Equipment Business conducted by any of the Nations Companies; (ii) canvass, solicit or accept from any Person who which is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or Equipment Business conducted by any of its Subsidiaries or persuade or attempt to persuade the Nations Companies, any such Person not to be a competitive business; or (iii) request or advise any customer of the Company or Equipment Business conducted by any of its Subsidiaries the Nations Companies to withdraw, curtail or to reduce the amount of cancel any such customer's business that such customer does with the Company Nations Companies or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; ortheir successors; (c) contactfor a period of three (3) years following the termination of his employment with the Company, approach directly or solicit for indirectly, employ any person who was employed by the purpose of offering employment Nations Companies, within six (6) months prior to or hiring or retainingthe date being employed by such Shareholder, or actually hire or retain in any Person who is or was employed or retained by manner seek to induce any employee of the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt Nations Companies to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliatesemployment; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c).and (d) at any time following the Closing Date, directly or indirectly, in any way utilize, disclose, copy, reproduce or retain in his possession any of the Companies' proprietary rights or records acquired hereunder, including, but not limited to, any customer lists. (e) Notwithstanding anything to the contrary foregoing, the restrictions described above in (a), (b), and (c) shall run, in the case of Olivxx Xxxxxxx, xxr a term of five (5) years from Closing. The Company and the Shareholders agree and acknowledge that the restrictions contained in this Section 5are reasonable in scope and duration, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for to protect the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionNations

Appears in 1 contract

Samples: Stock Purchase Agreement (Nationsrent Inc)

Restrictive Covenants. (a) The Executive agrees Employee acknowledges and recognizes that during the Employment Period he or she will be privy to Confidential Information and further acknowledges and recognizes that the Corporation would find it extremely difficult to replace the Employee. Accordingly, in consideration of the premises contained herein and the consideration to be received by the Employee hereunder (including, without limitation, the severance compensation described in Section 9(b)(i), if any), without the prior written consent of the Corporation, the Employee shall not, at any time during the Non-Compete Periodemployer/employee relationship between the Corporation and the Employee and the period beginning on the date of termination of such employer/employee relationship and ending on the later to occur of (x) the third anniversary of the Commencement Date and (y) the first anniversary of such date of termination, (i) directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage in, have an interest inrepresent in any way, or otherwise be connected with, any Competing Business directly competing with the business of the Corporation or any subsidiary or affiliate thereof within the state in which the Employee is employed by (or any other state of the United States, whether such engagement shall be as an owner, operator, partner, member, manager, employee, officer, director, consultantowner, advisoremployee, partner, affiliate or representative)other participant in any Competing Business, provide consulting (ii) assist others in engaging in any Competing Business in the manner described in clause (i) above, (iii) induce other employees of the Corporation or management services to, any subsidiary or permit his or her name affiliate thereof to be used in connection terminate their employment with the activities of, Corporation or any business such subsidiary or organization, engaged affiliate or to engage in any Competing Business or (iv) induce any entity or person with which the Corporation or any subsidiary or any affiliate thereof has a business that is competitive with a relationship, contractual or otherwise, to terminate or alter such business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;relationship. (b) solicit As used herein, "Competing Business" shall mean any Person who is or, within business involving the prior twelve (12) months, was, sale of products in any city or whose Affiliate is or, within the prior twelve (12) months, was a customer county in any state of the Company United States if such business or the products sold by it are competitive, directly or indirectly, at the time of the Termination of Employment with (i) the business of the Corporation or any of its Subsidiaries subsidiary or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiariesaffiliate thereof, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engageii) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed products manufactured, sold or distributed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement Corporation or any provision hereof may be reformed so that it is enforceable to subsidiary or affiliate thereof or (iii) any products or business being developed or conducted by the maximum extent permitted by law. If Corporation or any of the provisions of this Section 5 are determined to be wholly subsidiary or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionaffiliate thereof.

Appears in 1 contract

Samples: Employment Agreement (Norwich Acquisition LTD)

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, the Employee agrees that he or she shall not, during the Non-Compete Employment Period, and for (i) the greater of the balance of the Employment Term or one (1) year following the termination of this Agreement by the Company “for cause” or termination of this Agreement by the Employee or (ii) six months in the event the Employee is terminated “without cause” or terminates his Employment for “good reason” (provided that he Company continues to make the payments due the Employee hereunder), the Employee (or any affiliate) shall not directly or indirectly indirectly: (other a) own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be employed or retained by, render services to, provide financing (equity or debt) or advice to, or otherwise be connected in any manner with any business that at any time competes with any business of the Company, including the Business (as defined in the Purchase Agreement), anywhere in the United States; provided, however, that nothing contained herein shall prevent the purchase or ownership by the Employee of less than on behalf 1% of the outstanding equity securities of any class of securities of a company registered under Section 12 of the Securities Exchange Act of 1934, as amended; or (b) for any reason, (i) induce any customer or at the request supplier of the Company or any of its Subsidiaries): (a) engage in, have an interest in, subsidiaries or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, affiliates to patronize or representative), provide consulting do business with any business directly or management services to, or permit his or her name to be used indirectly in connection competition with the activities of, businesses conducted by the Company or any business of its subsidiaries or organization, engaged affiliates in a business that is competitive with a business any market in which the Company or any of its Subsidiaries engages subsidiaries or affiliates does business; (a “Competitive Business”); providedii) canvass, that ownership of less than one percent (1%) of the outstanding stock of solicit or accept from any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking customer or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer supplier of the Company or any of its Subsidiaries subsidiaries or persuade or attempt to persuade affiliates any such Person not to be a competitive business; or (iii) request or advise any customer or vendor of the Company or any of its Subsidiaries subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer's or vendor's business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engagesubsidiaries or affiliates at or within the prior one (1) withyear, or in any manner seek to the Executive’s knowledge, induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)employment. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 1 contract

Samples: Employment Agreement (Homeland Security Capital CORP)

Restrictive Covenants. The Executive (a) In consideration of the Award, Grantee agrees that he or she shall not, during the Non-Compete period beginning with termination of employment and ending with the ______ anniversary of the Date of Grant ("Restricted Period"), Grantee shall not for any reason, directly or indirectly (other than on behalf of or at indirectly, without the request prior written consent of the Company Corporation or its Subsidiaries): delegatee: (ai) engage inbecome employed, have an interest inengaged or involved with a competitor (defined below) of the Corporation or any Subsidiary in a position that involves: providing services that relate to or are similar in nature or purpose to the services performed by the Grantee for the Corporation or any Subsidiary at any time during his or her previous _______ years of employment with the Corporation or any Subsidiary; or, supervision, management, direction or otherwise be employed by (whether advice regarding such services; either as an ownerprincipal, operator, partner, memberagent, manager, employee, officerpartner, shareholder, director, consultantofficer or consultant (other than as a less-than three percent (3%) equity owner of any corporation traded on any national, advisorinternational or regional stock exchange or in the over-the- counter market); or, (ii) induce or attempt to induce any customer, client, supplier, employee, agent or independent contractor of the Corporation or any of the Subsidiaries to reduce, terminate, restrict or otherwise alter (to the Corporation’s detriment) its business relationship with the Corporation. (b) The noncompetition obligations of clause (i) of the preceding sentence shall be effective only with respect to a “competitor” of the Corporation or any Subsidiary which is understood to mean any person or entity in competition with the Corporation or any Subsidiary, and more particularly those persons and entities in the businesses of: production, transmission, distribution, or representative)retail or wholesale marketing or selling of electricity; resale or arranging for the purchase or for the resale, provide consulting or management services tobrokering, marketing, or permit his trading of electricity or her name to be used in connection with derivatives thereof; energy management and the activities ofprovision of energy solutions; development and operation of power generation facilities, and sales and marketing of electric power and natural gas, domestically and abroad; and any business or organization, engaged in a business that is competitive with a other business in which the Company or Corporation, including Subsidiaries, is engaged at the termination of Grantee’s continuous employment by the Corporation, including Subsidiaries; and within the following geographical areas: (i) any country in the world (other than the United States) where the Corporation, including Subsidiaries, has at least $25 million in capital deployed as of termination of Grantee's continuous employment by Corporation, including through its Subsidiaries engages Subsidiaries; (a “Competitive Business”); providedii) the states of Colorado, that ownership Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Minnesota, Mississippi, New York, North Carolina, Tennessee, Ohio, Pennsylvania, South Carolina, Texas, Vermont, Wisconsin and Wyoming (iii) any other state in the United States where the Corporation including the Subsidiaries, has at least $25 million in capital deployed as of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the ExecutiveGrantee’s employment by with the CompanyCorporation or any Subsidiary. The Corporation and Grantee intend the above restrictions on competition in geographical areas to be entirely severable and independent, the provisions and any invalidity or enforceability of this Section 5(a) shall be deemed waived provision with respect to the Executive; (b) solicit any Person who is orone or more of such restrictions, within the prior twelve (12) monthsincluding geographical areas, was, shall not render this provision unenforceable as applied to any one or whose Affiliate is or, within the prior twelve (12) months, was a customer more of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiariesother restrictions, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orincluding geographical areas. (c) contactGrantee agrees not to: (i) disclose to any third party or otherwise misappropriate any confidential or proprietary information of the Corporation or of any Subsidiary (except as required by subpoena or other legal process, approach in which event the Grantee will give the Chief Legal Officer of the Corporation prompt notice of such subpoena or solicit for other legal process in order to permit the purpose Corporation or any affected individual to seek appropriate protective orders); or, (ii) publish or provide any oral or written statements about the Corporation or any Subsidiary, any of offering employment to the Corporation's or hiring any Subsidiary's current or retainingformer officers, executives, directors, employees, agents or representatives that are false, disparaging or defamatory, or actually hire that disclose private or retain any Person who is confidential information about their business or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes personal affairs. The obligations of this Section 5(c)paragraph are in addition to, and do not replace, eliminate, or reduce in any way, all other contractual, statutory, or common law obligations Grantee may have to protect the Corporation’s confidential information and trade secrets and to avoid defamation or business disparagement. (d) Notwithstanding anything any other provision of Section 3, the Grantee remains free to report or otherwise communicate any nuclear safety concern, any workplace safety concern, or any public safety concern to the Nuclear Regulatory Commission, United States Department of Labor, Securities and Exchange Commission, or any other appropriate governmental agency without providing the notice described in Section 3(c), and the Grantee remains free to participate in any governmental proceeding or investigation without providing the notice described in Section 3(c). (e) If any part of this Section is held to be unenforceable because of the duration, scope or geographical area covered, the Corporation and Grantee agree to modify such part, or that the court making such holding shall have the power to modify such part, to reduce its duration, scope or geographical area. (f) Nothing in Section 3 shall be construed to prohibit Grantee from being retained during the Restricted Period in a capacity as an attorney licensed to practice law, or to restrict Grantee from providing advice and counsel in such capacity, in any jurisdiction where such prohibition or restriction is contrary to law. Notwithstanding any provisions of this Award to the contrary, Grantee may be entitled to immunity and protection from retaliation under the Defend Trade Secrets Act of 2016 for disclosing a trade secret under limited circumstances, as set forth in the Corporation’s Innovations – Inventions, Patents and Intellectual Properties Policy. (g) Grantee’s agreement to the restrictions provided for in this Agreement and the Corporation’s agreement to provide the Award are mutually dependent consideration. Therefore, notwithstanding any other provision to the contrary in this Section 5Agreement, if the enforceability of any material restriction on Grantee provided for in this Agreement is challenged and found unenforceable by a court of law then the Corporation shall, at its election, have the right to (i) cancel the Award, (ii) recover from Grantee any shares of Common Stock, Dividend Equivalents or other cash paid under Award, or (iii) with respect to any shares of Common Stock paid under the country Award that have been disposed of, require the Grantee to repay to the Corporation the fair market value of Mexicosuch shares of Common Stock on the date such shares were sold, this Section 5 will only apply transferred, or otherwise disposed of by Grantee. This provision shall be construed as a return of consideration or ill-gotten gains due to the failure of Grantee’s promises under the Agreement, and not as a liquidated damages clause. Nothing herein shall (and therefore will be limitedi) reduce or eliminate the Corporation’s right to activities assert that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions provided for in this agreement are fully enforceable as written, or as modified by a court pursuant to Section 3, or (ii) eliminate, reduce, or compromise the application of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches temporary or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from as a court fully appropriate and applicable remedy to enforce the restrictions provided for in Section 3 (inclusive of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damageits subparts), in addition to, and not in lieu of, such to recovery of damages or other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted otherwise allowed by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction.

Appears in 1 contract

Samples: Performance Award Agreement (Duke Energy Carolinas, LLC)

Restrictive Covenants. The Executive Each C/M Selling Shareholder agrees that he or she shall --------------------- during the five-year period beginning on the Closing Date (the "Restricted Period"), it will not, during and will not cause or permit any other member of the Non-Compete PeriodC/M Group to anywhere in the United States, directly or indirectly (other than on behalf indirectly, for its own account, or the account of or at the request of the Company or its Subsidiaries):others: (ai) engage inin the investment banking, have an interest inmerchant banking, securities brokerage, asset management or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used investment advisory businesses in connection competition with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company PGG or any of its Subsidiaries or persuade Affiliates (the "Restricted Businesses"), unless expressly approved by PGG; (ii) solicit, accept or attempt to persuade perform for hire or compensation any such Person not to be services of a type currently performed by PGG or its Subsidiaries or Affiliates for any of their clients or customers; (iii) request or advise any client or customer of the Company PGG or any of its Subsidiaries or Affiliates to reduce the amount of business that such customer does with the Company withdraw, reduce, cut back or cancel any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company with PGG or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; oror Affiliates; (civ) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months induce or attempt to persuade influence any Person not to continue to be employed employee of PGG or retained by the Company any of its Subsidiaries or its Affiliates or to terminate his or her employment with PGG or services with any of its Subsidiaries or Affiliates; (v) employ or cause to be employed any individuals employed by PGG or any of its Subsidiaries or Affiliates during the Company Restricted Period; (vi) disclose or communicate to any other Person the names of the customers or clients of PGG or any of its Subsidiaries or Affiliates; providedor (vii) use for its own benefit or communicate or divulge to, that notwithstanding or use for the foregoingbenefit of, general solicitations of employment published in a journal, newspaper any Person any confidential information trade secrets or other publication proprietary information discovered by or known to either C/M Selling Shareholder by reason of general circulation and not specifically directed towards such employees, consultants its ownership of or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary prior association with either Acquired Subsidiary. Nothing in this Section 510.15 shall prohibit any member of the C/M Group from: (i) owning, with respect to the country managing and disposing of Mexico, this Section 5 will only apply (and therefore for its own account those portfolio securities and investments and other assets that will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed owned by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the BoardC/M Group immediately following the Closing, and investing for its own account any proceeds from the sale or disposition thereof; or (ii) seeks an injunction against acting as a general partner of and providing administrative or investment management services to ISP; provided that (x) neither the Executive, there is a reasonable probability nature nor scope of the Company’s eventual success on the merits operations of ISP or CMH shall be expanded beyond that of a private investment entity and (zy) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority no member of the members of the Board) seeks an injunction against the ExecutiveC/M Group shall seek, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits solicit or accept any such breach clients or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement customers or any provision hereof may be reformed so that it is enforceable new partners or shareholders (exclusive of new partners or shareholders admitted by reason of interest transfers from other partners or shareholders) of or investments in or capital contributions to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly ISP or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionCMH.

Appears in 1 contract

Samples: Agreement and Plan of Reorganization (Cummer Moyers Holdings Inc)

Restrictive Covenants. A. From the date hereof and (i) for a period of one (1) year after the Term or (ii) if this Agreement is terminated prior to the end of the Term, for the greater of: (a) the remaining term of this Agreement or (b) a period of one (1) year following the termination of her employment (whenever, however and by whomever caused), the Employee shall not (1) enter into any business which is in competition with the Employer, (2) directly or indirectly engage in marketing activities on behalf of any company which competes either directly or indirectly with the Employer or any subsidiary, or (3) directly or indirectly own, manage, participate in the operation or control of, or be connected as an officer, director, partner, consultant, owner, employee, agent, lender, donor, vendor or otherwise, or have any financial interest in or aid or assist anyone else in the conduct of any competing entity in the same business as the Employer, or any entity that is otherwise engaged in, either directly or indirectly, business then conducted by the Employer or any subsidiary or which the Employer or any subsidiary plan to conduct within such time. Notwithstanding the foregoing, the Employee and the Employee’s Agents may engage in the following: (i) make and supervise passive investments in businesses which do not in any manner compete with the Employer­, (ii) own shares of any publicly held corporation which does not in any manner compete with the Employer, (iii) own shares of any publicly-held corporations which in any manner competes with the Employer, which shares (a) are equal to no more than three (3%) percent of the issued and outstand­ing shares of such corporation, and (b) have a value equal to no more than five (5%) percent of the Employee’s net worth, or (iv) serve on the Board of Directors of another company as long as there is no conflict of interest. B. The Executive Employee agrees that he or she shall not, during her employment and for a period of two (2) years after the Non-Compete Periodtermination of her employment, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a1) engage in, have an interest inpersonally, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, cause others to personally induce or representative), provide consulting or management services to, or permit his or her name attempt to be used in connection induce any employees to terminate their employment with the activities ofEmployer, any business or organization, engaged in a business that is competitive with a business in which the Company subsidiary or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonabletheir respective affiliates; (2) interfere with or disrupt the burden on the Executive Employer’s, any subsidiary’s or any of complying their respective affiliates’ relationships with the restrictions of this Section 5 is not unreasonabletheir respective suppliers, vendors, customers or employees; (3) take any action prejudicial to the general public policy is not harmed by Employer, any subsidiary or any of their respective affiliates’ business, affairs or interests. C. The Employee agrees that the restrictions duration, scope and geographic area for which the provisions set forth in Paragraphs “A” and “B” of this Section 5; and (4) the restrictions Article “13” of this Section 5 Agreement are necessary for the protection of the Company and its Subsidiariesto be effective are reasonable. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits If any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdictionjurisdiction determines that any provision of this Agreement is invalid or unenforceable by reason of such provision extending the covenants and agreements contained herein for too great a period of time or over too great a geographical area, without posting or by reason of it being too extensive in any bond other respect, such agreement or other security covenant shall be interpreted to extend only over the maximum period of time and without the necessity of proof of actual damage, in addition togeographical area, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted in all other respects, as to which it is valid and enforceable, all as determined by lawsuch court in such action. If Any determination that any provision of this Agreement is invalid or unenforceable, in whole or in part, shall have no effect on the validity or enforceability of any remaining provision of this Agreement. D. Any period of time set forth in this Article “13” of this Agreement shall not be construed to permit the Employee or the Employee’s Agents to engage in any of the provisions of prohibited acts set forth in this Section 5 are determined to Agreement after such period if such acts would otherwise be wholly prohibited by any applicable statute or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionlegal precedent.

Appears in 1 contract

Samples: Employment Agreement (Oiltek, Inc.)

Restrictive Covenants. The Executive agrees that he or she shall not, during acknowledges and recognizes the Non-Compete Period, directly or indirectly (other than on behalf highly competitive nature of or at the request businesses of the Company or and its Subsidiaries):affiliates and accordingly agrees as follows: (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with During the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any period of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, Executive will not, directly or indirectly, (i) engage in any business for Executive’s own account that competes with the provisions business of the Company or its affiliates (including, without limitation, businesses which the Company or its affiliates have specific plans to conduct in the future and as to which Executive is aware of such planning), (ii) enter the employ of, or render any services to, any person engaged in any business that competes with the business of the Company or its affiliates, or (iii) acquire a financial interest in any person engaged in any business that competes with the business of the Company or its affiliates, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant. During the period of Executive’s employment by the Company, Executive will also not, directly or indirectly, interfere with business relationships (whether formed before or after the date of this Section 5(aAgreement) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of between the Company or any of its Subsidiaries affiliates and clients, customers, suppliers, partners, members or persuade or attempt to persuade any such Person not to be a customer investors of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiariesaffiliates, or enter into or seek to enter into any agreement (to the extent such agreement except as she is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)entitled under applicable law. (db) Notwithstanding anything to the contrary in this Section Agreement, Executive may, directly or indirectly, own, solely as an investment, securities of any person engaged in the business of the Company or its affiliates 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, own five percent (5%) or more of any class of securities of such person. (c) During the period of Executive’s employment by the Company and for a period of one (1) year thereafter, with respect Executive will not, directly or indirectly, solicit or encourage any employee or independent contractor of the Company or its affiliates to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive terminate his or her employment or contract relationship with the businesses Company or its affiliates or to become employed or engaged as a contractor by Executive or any third party. (d) During the period of Executive’s employment by the Company, because of the inseparability of Confidential Information from the customer relationships with which Executive has been entrusted as part of her duties and in which order to protect the Company’s trade secrets, Executive will not directly or indirectly solicit any of the Mexican Subsidiaries of Company’s actual customers or vendors (either active or previous) with which Executive had any contact at any time during Executive’s employment to direct any business or prospective business or income from the Company engages. The or its affiliates; to stop or in any way alter the manner in which such customers or vendors are doing business with the Company or its affiliates; or to reduce the quantity of their business with the Company or its affiliates. (e) It is expressly understood and agreed that although Executive acknowledges and agrees that: (1) the Company consider the restrictions contained in this Section 13 to be reasonable, if a final determination is made by an arbitrator or court of competent jurisdiction that the time and geographical scope of the restrictions of or territory or any other restriction contained in this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 Agreement is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the an unenforceable restriction against Executive’s breach of , the provisions of this Section 5 will cause the Company irreparable harmAgreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, which if any arbitrator or court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens amended so as to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu ofmake it enforceable, such other remedies as may be available to finding shall not affect the Company for such breach, including the recovery enforceability of money damages. If any of the provisions other restrictions contained herein. (f) This Section 13 controls in the event of this Section 5 are determined to be wholly any conflict or partially unenforceable, the Executive hereby agrees that this Agreement or inconsistency with any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Confidentiality Agreement (as defined in Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction14(c)).

Appears in 1 contract

Samples: Employment Agreement (Resources Connection, Inc.)

Restrictive Covenants. The Executive In consideration of the foregoing, the Employee agrees that he or she shall not, : (a) during the NonEmployment Period and for a period of one-Compete year following the termination of the Employment Period for any reason, directly or indirectly, alone or as a partner, joint venture, officer, director, member, employee, consultant, agent, independent contractor or shareholder of, or lender to, any company or business, engage in any business in the aerospace industry directly or indirectly in competition with the business of TIMCO or its affiliates (TIMCO and its affiliates being referred to herein collectively as the “Companies”) as such business now exists or as it may exist at the time of termination; provided, however, that, the beneficial ownership of less than five percent (5%) of the shares of stock of any other corporation having a class of equity securities actively traded on a national securities exchange or over-the-counter market shall not be deemed, in and of itself, to violate the prohibitions of this Section; and, provided further, that Employee shall be entitled to receive each month for one-year following the termination of the Employment Period Employee’s monthly portion of the Salary, unless Employee has been was terminated for “Cause,” in which case this restrictive covenant shall apply notwithstanding the payment of severance; (b) for a period of one-year following the termination of the Employment Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (ai) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit induce any Person who which is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries the Companies, to patronize any business in the aerospace industry directly or persuade indirectly in competition with business conducted by any of the Companies; (ii) canvass, solicit or attempt to persuade accept from any such Person not to be which is a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledgeCompanies, any such Personcompetitive business; oror (iii) request or advise any Person which is a customer or supplier of any of the Companies, to withdraw, curtail or cancel any such customer’s or supplier’s business with any of the Companies, or its or their successors; (c) contactfor a period of one year following the Employment Period, approach directly or solicit for the purpose of offering employment to or hiring or retainingindirectly employ, or actually hire knowingly permit any company or retain business directly or indirectly controlled by him, to employ, any Person person who is or was employed by any of the Companies, at or retained by within the Company prior three months, or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt in any manner seek to persuade induce any Person not such person to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c).employment; (d) Notwithstanding anything to at any time following the contrary date hereof, directly or indirectly, in this Section 5, any way outside of his employment with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harmCompanies utilize, which cannot be adequately compensated by money damagesdisclose, (y) if the Executive breaches copy, reproduce or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be retain in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If his possession any of the provisions of this Section 5 are determined to be wholly Companies’ proprietary rights or partially unenforceablerecords, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If including, but not limited to, any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionits customer lists.

Appears in 1 contract

Samples: Employment Agreement (Timco Aviation Services Inc)

Restrictive Covenants. The Executive agrees (a) During the Employment Term and, in the event that he or she shall notthe Employee’s employment is terminated for any reason (including the non-renewal of this Agreement in accordance with Section 2(b) above), during the Non18-Compete Periodmonth period following such termination, the Employee will not directly or indirectly (other than on behalf of as a director, officer, executive employee, manager, consultant, independent contractor, advisor or at the request of the Company or its Subsidiaries): (aotherwise) engage inin competition with, have an or own any interest in, perform any services for, participate in or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection connected with the activities of, any business or organization, engaged organization that engages in a business that is competitive competition with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”the AmCOMP Companies within the meaning of Section 9(d); , provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedhowever, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a9(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation prohibit the Employee’s ownership of not more than 2% of the total shares of all classes of stock outstanding of any publicly held company. (b) In the event that the Employee’s employment is terminated for any reason (including the non-renewal of this Agreement in accordance with Section 2(b) above), during the 18-month period following such termination, the Employee will not directly or indirectly hire, solicit, retain, compensate or otherwise induce or attempt to induce any person who is or was an employee of any of the AmCOMP Companies during the six months prior to the Employee’s termination, to leave the employ of the AmCOMP Companies, or in any way interfere with the relationship between any of the AmCOMP Companies and any employee thereof. (c) During the Employment Term and, in the event that the Employee’s employment is terminated for any reason (including the non-renewal of this Agreement in accordance with Section 2(b) above), during the 18-month period following such termination, the Employee will not directly or indirectly hire, engage, send any work to, place orders with, or in any manner be associated with any supplier, contractor, subcontractor or other business relation of any of the AmCOMP Companies if such action by the Employee would have a material adverse effect on the business, assets or financial condition of any of the AmCOMP Companies, or materially interfere with the relationship between any such person or entity and any of the AmCOMP Companies. (i) For purposes of this Section 5(c). 9, a person or entity (dincluding, without limitation, the Employee) Notwithstanding anything shall be deemed to be a competitor of one or more of the contrary AmCOMP Companies, or a person or entity (including, without limitation, the Employee) shall be deemed to be engaging in this Section 5competition with one or more of the AmCOMP Companies, with respect if such person or entity (A) is a stock or mutual insurance company or an insurance fund engaged in writing workers’ compensation insurance or any other form of insurance that is provided or proposed to be provided by any of the country AmCOMP Companies at the time of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive termination of the Employee’s employment with the businesses Company (any such form of insurance being hereinafter referred to as the “Specified Insurance”), (B) is an agency or broker for a stock or mutual insurance company or an insurance fund engaged in writing any Specified Insurance, or (C) in any way conducts, operates, carries out or engages in the business of managing any entity described in clause (A) or (B), in any of the foregoing cases in the State of Florida or any other state of the United States of America in which any of the Mexican Subsidiaries AmCOMP Companies conduct, or are actively investigating the possibility of conducting, their businesses at the time of termination of the Company engagesEmployee’s employment with the Company. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions provisions of this Section 5 9 shall cease to be applicable to any state in which the AmCOMP Companies are reasonable; (2) actively investigating the burden on possibility of conducting their businesses at the Executive time of complying termination of Employee’s employment with the restrictions Company, unless within three months after such termination, the AmCOMP Companies, or any of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; them, have commenced soliciting prospective policyholders in such state, and (4) the restrictions of this Section 5 are necessary for the protection have effectuated any one of the Company and its Subsidiaries. The Executive further acknowledges and agrees following: (x) the Executive’s breach opening of an office in such state; (ii) the hiring of one or more employees to be employed in such state; or (z) the engagement of one or more agents in such state. (ii) For purposes of this Section 9, no corporation or entity that may be deemed to be an affiliate of the AmCOMP Companies solely by reason of its being controlled by, or under common control with, Xxx X. Xxxxxxxx, Welsh, Carson, Xxxxxxxx & Xxxxx VII, L.P. or Sprout Growth II, L.P. or any of their respective affiliates other than the AmCOMP Companies, will be deemed to be an affiliate of the AmCOMP Companies. (e) In connection with the foregoing provisions of this Section 5 9, the Employee represents that his experience, capabilities and circumstances are such that such provisions will cause not prevent him from earning a livelihood. The Employee further agrees that the Company irreparable harmlimitations set forth in this Section 9 (including, which cannot be adequately compensated without limitation, time limitations) are reasonable and properly required for the adequate protection of the current and future businesses of the AmCOMP Companies. It is understood that the covenants made by money damages, the Employee in this Section 9 (yand in Section 6 hereof) if shall survive the Executive breaches expiration or threatens to breach the provisions termination of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionAgreement.

Appears in 1 contract

Samples: Employment Agreement (Amcomp Inc /Fl)

Restrictive Covenants. The Executive (a) In order to induce the Buyer to enter into this Agreement, Xxxxxxx Xxxxxx and Xxxxx Xxxxxxxx (each of whom is a Seller and an executive officer of one or more of the Target Companies) agrees that he or she shall each of them will not, during without the Non-Compete Periodprior written consent of the Buyer, for their own account or jointly with another, directly or indirectly (other than indirectly, for or on behalf of any Person, as principal, agent or at otherwise: (i) for a period of three (3) years immediately following the request Closing Date, engage or invest in, or own, control, manage or participate in the ownership, control or management of, or render services or advice to, or lend such Seller’s name to, any business engaged, or which such Seller reasonably knows is undertaking to become engaged, within the geographic locations set forth in Section 7.15 of the Company Disclosure Schedules (which is the territory in which the Target Companies currently do business), in the business conducted by the Target Companies as described in Section 7.15 of the Disclosure Schedules, except on behalf of the Buyer or its Subsidiaries):Affiliates; (ii) for a period of three (3) years immediately following the Closing Date, solicit, call upon or attempt to solicit the patronage of any Person to whom the Target Companies sold or provided any of the Target Companies’ products or services during the two (2) year period prior to the Closing Date, for the purpose of obtaining the patronage of any such Person for the purchase of similar products and services, except on behalf of the Buyer and its Affiliates; (iii) for a period of three (3) years immediately following the Closing Date, solicit or induce, or in any manner attempt to solicit or induce, any person employed or engaged by the Target Companies or the Professional Corporations in any capacity (including, without limitation, as an employee, distributor, independent contractor or agent), to leave such employment or engagement, whether or not such employment or engagement is pursuant to a contract or is at will; and (iv) at any time after the Closing Date, disclose or reveal to any Person, any Confidential Information or Trade Secrets of the Target Companies or the Professional Corporations except on behalf of the Buyer or its Affiliates. (b) Notwithstanding anything herein to the contrary, it shall not be a breach of the covenants contained in subparagraph (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name above for Xxxxxxx Xxxxxx and Xxxxx Xxxxxxxx to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less collectively own not more than one five percent (15%) of the outstanding stock equity interests of any Person whose equity interests are publicly traded corporation shall not be deemed traded. (c) Although the Parties have, in good faith, used their best efforts to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that make the provisions of this Section 5(a) should 7.15 reasonable in both geographic area and in duration, and it is not apply to the Executive following the termination of the Executive’s employment anticipated, nor is it intended, by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees Parties hereto that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available jurisdiction would find it necessary to the Company for such breach, including the recovery of money damages. If any of reform the provisions hereof to make it reasonable in both geographic area and in duration, or otherwise, the Parties understand and agree that if a court of competent jurisdiction determines it necessary to reform the scope of this Section 5 are determined 7.15 in order to make it reasonable in either geographic area or duration, or otherwise, damages, if any, for a breach hereof, as so reformed, would be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable deemed to accrue to the maximum extent permitted by law. If any Buyer as of and from the date of such a breach only insofar as the damages for such breach relate to an action which occurred within the scope of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictiongeographic area and duration as so reformed.

Appears in 1 contract

Samples: Share Purchase Agreement

Restrictive Covenants. During the three (3) years following the end of the Employee's employment by the Company (the "Covenant Period"): (i) The Executive Employee agrees that he will not, directly or she shall notindirectly, during the Non-Compete Covenant Period, directly for his own benefit or indirectly (other than on behalf of or at for the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock benefit of any publicly traded corporation shall not be deemed to be a violation other Person, knowingly solicit the professional services of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment any Person employed by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Subsidiary or any Affiliate thereof or any Person who is or, had been employed within the three (3) months prior twelve (12) months, wasthereto, or whose otherwise interfere with the relationship between the Company, any Subsidiary or any Affiliate is orthereof and any of such Persons. (ii) The Employee agrees that he will not, within the prior twelve (12) monthsdirectly or indirectly, solicit or encourage any Person who was a customer of the Company, any Subsidiary or any Affiliate thereof during the three (3) years prior to the date of such termination to cease doing business with the Company or to do business with any other Person that is engaged in the same or similar business to that of its Subsidiaries the Company. (iii) If this Agreement shall be terminated other than pursuant to Section 7(a), then Employee, for a period of one (1) year from the date of termination, shall not, directly or persuade indirectly, solicit or attempt to persuade encourage any such Person not to be who was a customer of the Company Company, any Subsidiary or any Affiliate thereof during the three (3) years prior to the date of its Subsidiaries or such termination to reduce the amount of cease doing business that such customer does with the Company or to do business with any other Person that is engaged in the same or similar business to that of the Company. (b) The Employee recognizes and acknowledges that, in connection with his employment with the Company, he will have access to valuable trade secrets and confidential information of the Company and its Subsidiaries and Affiliates including, but not limited to, customer and supplier lists, business methods and processes, marketing, promotional, pricing and financial information and data relating to employees and agents (collectively, "Confidential Information") and that such Confidential Information is being made available to the Employee only in connection with the furtherance of his employment with the Company. The Employee agrees that during the Employment Term and thereafter, he will not use or disclose any of its Subsidiariessuch Confidential Information to any Person, or enter into or seek to enter into any agreement except that disclosure of Confidential Information by the Employee will be permitted: (i) to the extent Company, its Subsidiaries and Affiliates and their respective advisors; (ii) if such agreement is of a nature that is related Confidential Information has previously become available to the business in which public through no fault of the Company Employee; (iii) if required by any court or any of its Subsidiaries engagegovernmental agency or body or is otherwise required by law; or (iv) with, if expressly consented to by the Executive’s knowledge, any such Person; orCompany. (c) contact, approach The parties agree that a violation of any provision of any of the foregoing agreements not to compete or solicit for the purpose of offering employment to or hiring or retainingdisclose, or actually hire or retain any Person who is or was employed or retained by provision thereof, will cause irreparable damage to the Company, and the Company or its Affiliates as an employee during the immediately preceding twelve shall be entitled (12) months or attempt to persuade without any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations requirement of employment published in posting a journal, newspaper bond or other publication of general circulation security), in addition to any other rights and not specifically directed towards remedies which it may have, at law or in equity, to an injunction enjoining and restraining the Employee from doing or continuing to do any such employees, consultants act or independent contractors shall not be deemed to constitute solicitation for purposes any other violations or threatened violations of this Section 5(c)6. (d) Notwithstanding anything Any interest in patents, patent applications, inventions, copyrights, developments, and processes ("Such Inventions") which Employee now or hereafter during any period he is employed by the Company may, directly or indirectly, own or develop relating to the contrary fields in which the Company may then be engaged shall belong to the Company; and, forthwith upon request of the Company, Employee hereby agrees that he shall execute all such assignments and other documents and take all such other action as the Company may reasonably request in order to vest in the Company all of his right, title, and interest in and to Such Inventions, free and clear of all liens, charges, and encumbrances. (e) The Employee acknowledges and agrees that the restrictive covenants set forth in this Section 5, with respect to 6 (the country of Mexico, this Section 5 will only apply ("Restrictive Covenants") are reasonable and therefore will be limited) to activities valid in geographical and temporal scope and in all other respects. If any court determines that are competitive with the businesses in which any of the Mexican Subsidiaries Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the Company engages. The Executive acknowledges Restrictive Covenants shall not thereby be affected and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary given full force and permanent injunctive relief from a court of competent jurisdictioneffect, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available regard to the Company for such breach, including the recovery of money damages. invalid or unenforceable parts. (f) If any court determines that any of the provisions of this Section 5 are determined to be wholly or partially unenforceableRestrictive Covenants, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it part thereof, is enforceable to the maximum extent permitted by law. If invalid or unenforceable for any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdictionreason, such determination court shall not have the power to modify such Restrictive Covenant, or any part thereof, and, in its modified form, such Restrictive Covenant shall then be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionvalid and enforceable.

Appears in 1 contract

Samples: Employment Agreement (Marketing Services Group Inc)

Restrictive Covenants. The Executive agrees that he or she shall notIn consideration of the transactions contemplated by this Agreement, including the purchase of the Assets (and the goodwill associated therewith) and the Business, Sellers and the Selling Persons covenant to Buyer that, during the Non-Compete Competition Period, without the prior written consent of Buyer (which consent may be withheld in the sole and absolute discretion of Buyer), Sellers, any Affiliate of Sellers, the Selling Persons, and any Affiliate of the Selling Persons (each, a “Covenanting Person”) will not, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inin any capacity, have an interest in, or otherwise be employed by (whether including as an owner, operatora shareholder, partner, member, managerinvestor, lender, principal, director, officer, employee, officer, director, consultant, advisorconsultant or agent of any other Person): (x) engage in, or representative)have any financial interest in any other Person that engages in, provide consulting the business of providing or management marketing administrative, executive administrative, finance and accounting staffing services to(a “Competing Business”) within the Chicago metropolitan area and a 000-xxxx xxxxxx xx xxx Xxxxxxx xxxxxxxxxxxx xxxx; (y) solicit or influence, or permit attempt to solicit or influence, any customer or any potential customer of the Business, Buyer or Buyer’s Affiliates, or any Person that is, or during the period preceding the Closing Date was, a purchaser of services from Sellers, Buyer or their respective Affiliates, to purchase any services from any Competing Business or from any Person other than Buyer or its Affiliates; or (z) solicit, entice, induce or hire any Person who is an employee, temporary personnel or billable staffing independent contractor of the Business, Buyer or Buyer’s Affiliates, or who becomes an employee, temporary personnel or billable staffing independent contractor of the Business, Buyer or Buyer’s Affiliates, to become employed or independently contracted by any other Person or to leave his or her name to be used in connection employment with the activities ofBusiness, Buyer or Buyer’s Affiliates or cease independently contracting for the Business, Buyer or Buyer’s Affiliates, or approach any business such employee, temporary personnel or organization, engaged in a business that is competitive with a business in which billable staffing independent contractor for such purpose or authorize or knowingly approve the Company or taking of such actions by any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation other Person. For purposes of this Section 5 solely by reason thereof; provided6.1(a), furtherthe term “Non-Competition Period” shall mean (1) the period of time beginning on the Closing Date and continuing until four years after the Closing Date with respect to Sellers, thatany Affiliate of Sellers (other than the Minority Shareholder), providing investment banking or legal services to a Competitive Business as an independent consultantthe Majority Shareholder, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination and any Affiliate of the Executive’s employment by Majority Shareholder, and (2) the Company, period of time beginning on the provisions of this Section 5(a) shall be deemed waived Closing Date and continuing until two years after the Closing Date with respect to the Executive; Minority Shareholder and any Affiliate of the Minority Shareholder (b) solicit other than any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained covered by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionabove).

Appears in 1 contract

Samples: Asset Purchase Agreement (BG Staffing, Inc.)

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, the Employee agrees that he or she during the Term and for a period of one (1) year following the termination of this Agreement in accordance with Section 7 hereof, Employee shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of indirectly, 6.1. alone or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, member, employee, consultant, advisoragent, independent contractor or stockholder of, or representative), provide consulting or management services lender to, any company or permit his business, engage in any business which competes, directly or her name indirectly, with any business of the Company; provided, however, that the beneficial ownership of less than one percent (1 of the shares of stock of any corporation having a class of equity securities actively traded on a national securities exchange or over-the-counter market shall not be deemed, in and of itself, to be used violate the prohibitions of this section; 6.2. for any reason, (i) induce any customer of the Company or any of its affiliates to patronize any business directly or indirectly in connection competition with the activities of, businesses conducted by the Company or any business of its subsidiaries or organization, engaged affiliates in a business that is competitive with a business any market in which the Company or any of its Subsidiaries engages affiliates does business; (a “Competitive Business”); providedii) canvass, that ownership of less than one percent (1%) of the outstanding stock of solicit or accept from any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade affiliates any such Person not to be a competitive business; or (iii) request or advise any customer or vendor of the Company or any of its Subsidiaries affiliates to withdraw, curtail or to reduce the amount of cancel any such customer’s or vendor’s business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personaffiliates; or (c) contact6.3. for any reason, approach or solicit for the purpose of offering employment to or hiring or retainingemploy, or actually hire knowingly permit any company or retain business entity directly or indirectly controlled by him to employ, any Person person who is or was employed or retained by the Company or its Affiliates as an employee during affiliates at or within the immediately preceding twelve (12) months prior six months, or attempt in any manner seek to persuade induce any Person not such person to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment. The provisions of this Section shall apply to Employee whether or not Employee’s employment or services with the Company has been terminated for Cause or its Affiliates; provided, that notwithstanding without Cause and whether or not the Company is required to pay Employee severance benefits. Notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of if this Section 5(c). (d) Notwithstanding anything to Agreement expires by its terms at the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any end of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 Term or if Employee is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of terminated without Cause, the provisions of this Section 5 will cause 6 shall apply to Employee only if the Company irreparable harm, provides Employee with all of the severance benefits which cannot it would be adequately compensated by money damages, (y) obligated to provide him as if the Executive breaches or threatens to breach the provisions of this Section 5 and Employee had been terminated from his employment with the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionCause.

Appears in 1 contract

Samples: Employment Agreement (Catalyst Pharmaceutical Partners, Inc.)

Restrictive Covenants. The Executive agrees that he or she (a) Neither Buyers nor Mxxxxxx X. Xxxxx shall, and Buyers and Mxxxxxx X. Xxxxx shall notcause (A) Mxxxxxx X. Xxxxx, during each Buyer and each member of the Non-Compete PeriodCompany Group, (B) the most senior executive at each Buyer and (C) the most senior executive at each Member of the Company Group not to, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inindirectly, have an interest in, or otherwise be employed by (whether as an ownerprincipal, operator, partner, member, manager, employeeagent, officer, director, partner, employee, independent contractor, consultant, advisorstockholder, licensor or otherwise, alone or in association with any other Person: (i) For a period from the Closing Date until two years after the Closing Date, (A) circumvent, interfere with, or representative), provide consulting or management services toassist any other party in circumventing, or permit his or her name to be used in connection interfering with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company Subscription Fulfillment Business of Seller or any of its Subsidiaries engages Affiliates; (B) own, manage, operate, finance, conduct business, engage, directly or indirectly, alone or as greater than a “Competitive Business”); provided2% shareholder, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedpartner, furtherofficer, thatdirector, providing investment banking employee, consultant or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, wasadvisor, or whose Affiliate is orotherwise in any way participate in or become associated with, within any other business that directly competes with the prior twelve Subscription Fulfillment Business; (12C) months, was a customer divert business from or otherwise interfere with the relationship of the Company Seller or any of its Subsidiaries Affiliates in the Subscription Fulfillment Business with any person; and (D) employ or persuade or attempt to persuade solicit for employment any such Person not to be a customer employee of the Company Seller or any of its Subsidiaries or to reduce the amount Affiliates, induce any employee of business that such customer does with the Company Seller or any of its Subsidiaries, or enter into or seek Affiliates to enter into any agreement (to the extent terminate such agreement is of a nature that is related to the business in which the Company employee’s employment with Seller or any of its Subsidiaries engage) with, Affiliates or offer employment to anyone Seller or any of its Affiliates hires (other than through or as a result of the Executive’s knowledge, placement or sponsorship of a general advertisement for employment not specifically targeted at any such Personemployees of Seller or any of its Affiliates); orand (cii) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain at any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: time (1) knowingly disparage, or knowingly do or say anything that would harm the time business or reputation of, Seller or any of its Affiliates, any customers, stockholders, members, employees, directors, officers or agents of Seller or any of its Affiliates currently, in the past, or in the future or any other people or organizations associated with Seller or any of its Affiliates currently, in the past, or in the future and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive hold itself or themselves out to any customers or any other third parties as a representative or employee of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches Seller or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionits Affiliates.

Appears in 1 contract

Samples: Stock Purchase Agreement (Amrep Corp.)

Restrictive Covenants. (a) The Executive agrees that he or for the duration of her employment and for a period of one (1) year following the date of termination thereof, she shall will not, during the Non-Compete Period, directly on her own behalf or indirectly (other than on behalf of any other person or at entity, solicit, or encourage to leave the request employ of the Company or its Subsidiaries): (a) engage in, have Corporation any person who is an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with employee of the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company Corporation or any of its Subsidiaries engages subsidiaries or affiliates. (b) The Executive agrees that for the duration of her employment and for a “Competitive Business”); provided, that ownership period of less than one percent (1%) year following the date of termination thereof, she will not, on her own behalf or on behalf of any other person or entity, divert, or attempt to divert, any person from doing business with the Corporation, or attempt to induce any such person to cease being a customer or supplier of the outstanding stock Corporation. (c) The Executive agrees that for the duration of any publicly traded corporation her employment and for a period of one (1) year following the date of termination thereof, she will take no action which is intended, or would reasonably be expected, to harm (e.g., making public derogatory statements or misusing confidential Corporation information, it being acknowledged that the Executive’s employment with a competitor in and of itself shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply harmful to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation Corporation for purposes of this Section 5(c7(c)) the Corporation or its reputation. (d) Notwithstanding anything (Intentionally Omitted.) (e) The Executive will not at any time (whether during or after her employment with the Corporation) disclose or use for her own benefit or purposes or the benefit or purposes of any other person, entity or enterprise, other than the Corporation or any of its subsidiaries or affiliates, any “Confidential Information.” The term “Confidential Information” means all information (including proprietary information of the Corporation, technical, business and financial data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, vendor lists, supplier lists and suppliers, customer lists and customers, contacts at or knowledge of clients or prospective clients of the Corporation, pricing information and costs, markets, software, ideas, concepts, developments, inventions, discoveries, protocols, scripts, features and modes of operation, interfaces, works of authorship, databases or database criteria, algorithms, methodologies, processes, formulas, computer codes, technology, designs, drawings, internal documentation, engineering materials, hardware configuration information, marketing data, licenses, finances, budgets, projections, forecasts, strategies, salaries, terms of compensation of employees or other business information disclosed to the contrary Executive by the Corporation, either directly or indirectly whether in this Section 5written, with respect electronic, oral or other form and including trade secrets and non-public, confidential or proprietary information) relating to the country Corporation (including the past, present or prospective transactions, business, technology, operating methods or processes, financial condition, financial or business performance, assets, liabilities, rights, obligations, strategies and plans of Mexicothe Corporation) furnished by or on behalf of or obtained from, this Section 5 will only apply before or after the date hereof, the Corporation or controlling persons, directors, officers, employees, affiliates, representatives (including financial advisors, attorneys and therefore will be limitedaccountants), agents or financing sources (collectively, “Representatives”) of the Corporation and all files, books, records, notes, compilations, analyses, forecasts, studies, reports and other documents (whether in written or electronic form) prepared by, on behalf of or for any third party, including the Executive, which contain or reflect any of such information (collectively, “Analyses”). The term “Confidential Information” does not, however, include information which (i) is part of the public domain, including information which is not unique to activities that are competitive the Corporation or which is generally known to the industry or the public, through no fault of the Executive or (ii) becomes known by or available to the Executive after the termination of her employment with the businesses in which Corporation on a non-confidential basis from a source (other than the Corporation or any of its Representatives) which, to the Mexican Subsidiaries knowledge of the Company engagesExecutive, after due inquiry, is not prohibited from disclosing such information to the Executive by a statutory, regulatory, contractual or fiduciary obligation. The Executive acknowledges and agrees that: (1) the time and geographical scope that upon termination of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying her employment with the restrictions of this Section 5 is not unreasonable; (3) Corporation for any reason, she will return to the general public policy is not harmed by the restrictions of this Section 5; Corporation immediately all memoranda, books, papers, plans, information, letters and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition todata, and not in lieu ofall copies thereof or therefrom, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish relating to the Company’s right to enforce any such covenant in any other jurisdictionbusiness of the Corporation or its subsidiaries or affiliates or licensees

Appears in 1 contract

Samples: Employment Agreement (Novamerican Steel Inc.)

Restrictive Covenants. The a. Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and its subsidiaries and accordingly agrees that he or she shall as follows: (1) During the Employment Term and for a period of one (1) year following the date Executive ceases to be employed by the Company for any reason, Executive will not, during the Non-Compete Period, directly whether on Executive’s own behalf or indirectly (other than on behalf of or at the request of the Company in conjunction with any person, firm, partnership, joint venture, association, corporation or its Subsidiaries): other business organization, entity or enterprise whatsoever (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative“Person”), provide consulting directly or management services toindirectly, solicit or permit his assist in soliciting or her name cause any other Person or entity to be used solicit or assist in connection soliciting, in competition with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages subsidiaries or affiliates, the business of any client or prospective client: (i) with whom Executive had personal contact or dealings on behalf of the Company or any of its subsidiaries during the one year period preceding Executive’s termination of employment; (ii) with whom employees reporting to Executive have had personal contact or dealings on behalf of the Company or any of its subsidiaries during the one year immediately preceding Executive’s termination of employment; or (iii) for whom Executive had direct or indirect responsibility during the one year immediately preceding Executive’s termination of employment. (2) During the Employment Term and for a period of one year following the date Executive ceases to be employed by the Company for any reason, Executive will not directly or indirectly, whether on Executive’s own behalf or on behalf of or in conjunction with any other Person, directly or indirectly: (i) engage in any business that competes with the business of the Company or any of its subsidiaries or affiliates, including, but not limited to, providing formulation/dose form technologies and/or contract services to pharmaceutical, biotechnology, over-the-counter and vitamins/minerals/supplements companies related to pre-clinical and clinical development, formulation, analysis, manufacturing and/or packaging and any other technology, product, or service of the type developed, manufactured, or sold by the Company or any of its subsidiaries or affiliates (including, without limitation, any other business that the Company or any of its subsidiaries or affiliates have plans to engage in as of the termination date) in any geographical area where the Company or any of its subsidiaries or affiliates conducts business (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (bii) solicit enter the employ of, or render any services to, any Person (or any division or controlled or controlling affiliate of any Person) who is or, within the prior twelve or which engages in a Competitive Business; (12iii) months, wasacquire a financial interest in, or whose Affiliate is otherwise become actively involved with, any Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee, or consultant; or (iv) interfere with, within or attempt to interfere with, any business relationship (whether formed before, on, or after the prior twelve (12date of this Agreement) monthsbetween the Company or any of its subsidiaries or affiliates and any customer, was a customer client, supplier, or investor of the Company or any of its Subsidiaries subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)affiliates. (d3) Notwithstanding anything to the contrary in this Section Agreement, Executive may, directly or indirectly own, solely as an investment, securities of any Person engaged in any Competitive Business that are publicly traded on a national or regional stock exchange or on the over-the-counter market if Executive (i) is not a controlling person of, or a member of a group that controls, such Person and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such Person. Any such qualifying ownership shall not be deemed to be engaging in Competitive Activity for purposes of this Agreement. (4) During the Employment Term and for a period of two (2) years following the date Executive ceases to be employed by the Company for any reason, Executive will not, whether on Executive’s own behalf or on behalf of or in conjunction with respect any Person, directly or indirectly: (i) solicit or, other in the ordinary course of performing Executive’s duties for the Company, encourage any employee of the Company or any of its subsidiaries to leave the employment of the Company or any of its subsidiaries; or (ii) hire any such employee who was employed by the Company or any of its subsidiaries as of the date of Executive’s termination of employment with the Company or who left the employment of the Company or any of its subsidiaries coincident with, or within twelve (12) months prior to, the termination of Executive’s employment with the Company. (5) During the Employment Term and for a period of two (2) years following the date Executive ceases to be employed by the Company for any reason, Executive will not, directly or indirectly, solicit or encourage to cease to work with the Company or any of its subsidiaries any consultant then under contract with the Company or any of its subsidiaries. (6) Notwithstanding anything herein to the country contrary, upon a Change of MexicoControl, the definition of the Company, its subsidiaries and affiliates and their respective employees, independent contractors, clients and prospective clients for purposes of this Section 5 will 8 shall refer only apply to the Company, its subsidiaries and affiliates (and therefore will be limited) to activities that are competitive with the businesses in which any they were engaged or had active plans to engage in), their respective employees, independent contractors, clients and prospective clients, in each case, as of the Mexican Subsidiaries date immediately prior to such Change of Control. b. It is expressly understood and agreed that although Executive and the Company engages. The Executive acknowledges and agrees that: (1) consider the restrictions contained in this Section 8 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time and geographical scope of the restrictions of or territory or any other restriction contained in this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 Agreement is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the an unenforceable restriction against Executive’s breach of , the provisions of this Section 5 will cause the Company irreparable harmAgreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, which if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be adequately compensated by money damagesamended so as to make it enforceable, (y) if such finding shall not affect the Executive breaches or threatens to breach enforceability of any of the other restrictions contained herein. c. The provisions of this Section 5 and 8 shall survive the Company (by vote termination of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits employment for any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionreason.

Appears in 1 contract

Samples: Employment Agreement (Catalent, Inc.)

Restrictive Covenants. The Executive agrees that he or she shall (a) For a period of three (3) years after the Closing Date, Seller will not, and will not permit any of its controlled Affiliates to: (i) directly engage in any business that directly competes with the Business, as conducted by the Company as of the date hereof and during the Non-Compete Period12 months prior to the date hereof, within the States of Alabama, Florida, Georgia, Mississippi and Tennessee; (ii) intentionally interfere in any respect with the business relationships between any customers or suppliers of the Company with respect to the Business; or (iii) knowingly solicit any customers or suppliers of the Company for purposes of diverting their business or services from the Company. (b) For a period of two (2) years after the Closing Date, Seller will not, and will not permit any of its Affiliates to, directly or indirectly indirectly, (other than on behalf i) induce or encourage any Business Employee to leave the employment of or at the request of the Company or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company Purchaser or any of its Subsidiaries engages Affiliates or (a “Competitive Business”)ii) solicit for employment or employ any Business Employee; provided, that ownership of less than one percent the foregoing clause (1%ii) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company preclude Seller or any of its Subsidiaries Affiliates from (A) making general solicitations not specifically directed toward any Business Employee or persuade or attempt to persuade (B) hiring any such Person not to be a customer of the Company Business Employee (x) whose employment has been terminated by Purchaser or any of its Subsidiaries or Affiliates, (y) who responds to reduce the amount of business that such customer does with the Company any general solicitation made by Seller or any of its Subsidiaries, Affiliates not specifically directed toward any Business Employee or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company z) who contacts Seller or any of its Subsidiaries engageAffiliates on his or her own initiative without any direct or indirect solicitation by Seller or any of its Affiliates (other than general solicitations described in the foregoing clause (A) with, to the Executive’s knowledge, any such Person; oror (B)(y)). (c) contactFor a period of two (2) years after the Closing Date, approach Purchaser will not, and will not permit any of its Affiliates to, directly or solicit for the purpose indirectly, (i) induce or encourage any employee of offering employment to Seller or hiring or retaining, or actually hire or retain any Person of its Affiliates who is not a Business Employee to leave the employment of Seller or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or of its Affiliates or to terminate his or her (ii) solicit for employment or services with the Company employ any employee of Seller or any of its AffiliatesAffiliates who is not a Business Employee; provided, that notwithstanding the foregoing, foregoing clause (ii) shall not preclude Purchaser or any of its Affiliates from (A) making general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards toward any such employeesemployee or (B) hiring any such employee (x) whose employment has been terminated by Seller or any of its Affiliates, consultants (y) who responds to any general solicitation made by Purchaser or independent contractors shall any of its Affiliates not be deemed to constitute specifically directed toward any such employee or (z) who contacts Purchaser or any of its Affiliates on his or her own initiative without any direct or indirect solicitation for purposes by Purchaser or any of this Section 5(cits Affiliates (other than general solicitations described in the foregoing clause (A) or (B)(y)). (d) Notwithstanding anything to Each of Purchaser and Seller acknowledge that the contrary restrictions contained in this Section 5, 7.07 are reasonable and necessary to protect their respective legitimate business interests (including with respect to the country of Mexico, Company) and constitute a material inducement to enter into this Agreement and consummate the transactions contemplated by this Agreement. In the event that any covenant contained in this Section 5 will only apply (7.07 should ever be fully and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed finally adjudicated by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdictionjurisdiction to exceed the time, without posting any bond geographic, product or service, or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent limitations permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable applicable Law in any jurisdiction, then such determination shall not be a bar court is expressly empowered to or in any way diminish the Company’s right to enforce any reform such covenant, and such covenant shall be deemed reformed, in any such jurisdiction to the maximum time, geographic, product or service, or other jurisdictionlimitations permitted by applicable Law.

Appears in 1 contract

Samples: Membership Interest Purchase Agreement (Covia Holdings Corp)

Restrictive Covenants. The Executive agrees that he or she shall not(a) You agree that, during the Non-Compete Salary --------------------- Continuation Period, you will not, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (ai) engage in, have an interest in, or otherwise be employed by (whether serve as an owner, operator, partner, member, manager, employee, officer, director, consultantemployee, advisorprincipal, partner, agent, contractor or consultant of or for, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities ofotherwise have a financial interest in, any business Prohibited Business (as defined in Section 11(d) below) which sells or organization, engaged offers to sell products or services in a business that is competitive competition with a business in which the Company Cadmus or any of its Subsidiaries engages (a “Competitive Business”)subsidiaries or affiliates; provided, provided that ownership of less this covenant will not prevent you from purchasing or owning not more than one percent (1%) of the outstanding stock any class of securities of any publicly traded corporation, whether or not such corporation shall not be deemed to be is a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveProhibited Business; (bii) solicit sell or offer to sell to any Person who is or, within the prior twelve (12) months, was, any goods or whose Affiliate is or, within the prior twelve (12) months, was a customer services of the Company any type then sold or offered by Cadmus or any of its Subsidiaries subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company affiliates in competition with Cadmus or any of its Subsidiaries subsidiaries or to reduce affiliates; (iii) otherwise interfere with or induce or cause a reduction or termination of the amount of business that such customer does with the Company between Cadmus or any of its Subsidiaries, subsidiaries or enter into affiliates and any customer or seek to enter into any agreement (to the extent such agreement is prospective customer of a nature that is related to the business in which the Company Cadmus or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orsubsidiaries or affiliates; (civ) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade hire any Person not to continue to be person employed or retained engaged by the Company Cadmus or any of its Affiliates subsidiaries or affiliates or encourage or solicit any such person to terminate his or her employment or engagement with Cadmus or such subsidiary or affiliate of Cadmus; (v) interfere with or induce or cause a reduction or termination of the business relationship between Cadmus or any of its subsidiaries or affiliates and any business which supplies or supplied goods or services to Cadmus or its subsidiaries or affiliates; (vi) make any Public Statement inconsistent with the Company description of your retirement and resignation set forth on Exhibit A or any Public --------- Statement which is either intended to be or reasonably likely to be injurious or detrimental to Cadmus or any of its Affiliatessubsidiaries or affiliates or which is derogatory to any current or former director, officer or employee of Cadmus or any of its subsidiaries or affiliates; providedor (vii) acquire or attempt to acquire, that notwithstanding or be a member of a group of two or more Persons who acquire or attempt to acquire, or provide Confidential Information to or otherwise assist in any way any Person or group of two or more Persons who acquire or attempt to acquire, beneficial ownership (within the foregoingmeaning of Rule 13d-3 of the Securities Exchange Commission under the Securities Exchange Act of 1934) of 20% or more of the outstanding shares of the voting stock of Cadmus; or otherwise effect or attempt to effect, general solicitations or be a member of employment published a group of two or more Persons who otherwise effect or attempt to effect, or provide Confidential Information to or otherwise assist in any way any Person or group of two or more Persons who otherwise effect or attempt to effect, a journal, newspaper or other publication "change in control" of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)Cadmus. (db) Notwithstanding anything to You acknowledge and agree that, given the contrary in this Section 5, with respect to the country nature of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any Cadmus and its subsidiaries and affiliates are engaged and given your past service as a Director and Chairman, President and Chief Executive Officer of Cadmus, the Mexican Subsidiaries restrictive covenants contained in Section 11(a) above are reasonable and necessary to protect the legitimate business interests of the Company engagesCadmus. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot parties therefore intend that these restrictive covenants be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available enforced to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum fullest extent permitted by applicable law. If any Each of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be these restrictive covenants is a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionseparate and independent contractual provision.

Appears in 1 contract

Samples: Retirement Agreement (Cadmus Communications Corp/New)

Restrictive Covenants. The Executive In consideration of his employment and the other benefits arising under this Agreement, Employee agrees that he or she shall not, during the Non-Compete Periodterm of this Agreement, and for a period of two (2) years (three (3) years if the termination is within two years of the Merger of Allied Waste Industries, Inc. into RS Merger Wedge, Inc. or in the event Section 4(a) is applicable) following the termination of this Agreement, Employee shall not directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, member, employee, consultant, advisoragent, independent contractor or stockholder of, or representative), provide consulting or management services lender to, any company or permit his business, (i) engage in the business of solid waste collection, disposal or her name to be used recycling (the “Solid Waste Services Business”) in connection with the activities of, any business or organization, engaged in a business that is competitive with a business market in which the Company or any of its Subsidiaries engages (a “Competitive Business”); providedsubsidiaries or affiliates does business, that ownership or any other line of less than one percent (1%) business which is entered into by the Company or any of its subsidiaries or affiliates during the outstanding stock of any publicly traded corporation shall not be deemed to be a violation term of this Section 5 solely by reason thereof; providedAgreement, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor (ii) compete with the Company or independent representative shall not be deemed to be a violation any of this Section 5 solely by reason thereof so long as providing such services is not its subsidiaries or affiliates in acquiring or merging with any other business or acquiring the primary duties or business activities assets of such individualother business; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;or (b) solicit for any Person who is orreason, within the prior twelve (12i) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a induce any customer of the Company or any of its Subsidiaries subsidiaries or persuade affiliates to patronize any business directly or attempt to persuade indirectly in competition with the Solid Waste Services Business conducted by the Company or any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its subsidiaries or affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries subsidiaries or affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its subsidiaries or affiliates to reduce the amount of withdraw, curtail or cancel any such customer’s or vendor’s business that such customer does with the Company or any of its Subsidiariessubsidiaries or affiliates; or (c) for any reason, employ, or enter into knowingly permit any company or seek business directly or indirectly controlled by him, to enter into employ, any agreement (to the extent such agreement is of a nature that is related to the business in which person who was employed by the Company or any of its Subsidiaries engage) withsubsidiaries or affiliates at or within the prior six months, or in any manner seek to the Executive’s knowledge, induce any such Person; or (c) contact, approach or solicit for the purpose of offering employment person to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding employment. Notwithstanding the foregoing, general solicitations the beneficial ownership of employment published in less than five percent (5%) of the shares of stock of any corporation having a journal, newspaper class of equity securities actively traded on a national securities exchange or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors over-the-counter market shall not be deemed deemed, in and of itself, to constitute solicitation for purposes violate the prohibitions of this Section 5(c)Section. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 1 contract

Samples: Employment Agreement (Republic Services, Inc.)

Restrictive Covenants. The Executive agrees Unless otherwise determined by the Committee in its sole discretion, by accepting the RSUs, the Grantee acknowledges that he or she shall not, during the Non-Compete Period, directly or indirectly Grantee is bound by the following restrictive covenants (other than on behalf of or at the request of the Company or its Subsidiaries“Restrictive Covenants”): (a) engage inExcept to the extent (1) expressly authorized in writing by the Company or (2) required by law or any legal process, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection the Grantee shall not at any time during the Grantee’s Employment with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking Affiliates or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of date the ExecutiveGrantee’s employment by the CompanyEmployment terminates use, the provisions of this disseminate, disclose or divulge to any person or to any firm, corporation, association or other business entity, Confidential Information (as defined in Section 5(a20 herein) shall be deemed waived with respect to the Executive; or proprietary Trade Secrets (bas defined in Section 20 herein) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries Affiliates; (b) The Grantee shall not at any time during the Grantee’s Employment with the Company or persuade any of its Affiliates or attempt to persuade following the date the Grantee’s Employment terminates make any such Person derogatory, disparaging or negative statements, orally, written or otherwise, against the Company or any of its Affiliates or any of their respective directors, officers and employees; (c) During the Non-Compete Period (as defined in Section 20 herein), the Grantee shall not to be (i) become employed in any capacity by, or become an officer, employee, director, agent, consultant, shareholder or partner of, or perform any services for, or otherwise hold an interest (other than the ownership of less than 5% of the stock or other equity interests of a customer publicly traded firm or corporation) in, any Competitor (as defined in Section 20 herein) of the Company or any of its Subsidiaries Affiliates or to reduce (ii) directly or indirectly, on his or her own behalf or on behalf of any other person or entity, including any Competitor of the amount Company or any of its Affiliates, engage in any business that such customer does transaction or relationship or perform any services in any material way competitive with the Company or any of its Subsidiaries, Affiliates with or enter into for a client or seek to enter into any agreement (to the extent such agreement is prospective client of a nature that is related to the business in which the Company or any of its Subsidiaries engageAffiliates, provided that if the terms of any effective written individual contract entered into between the Company and the Grantee shall provide for different terms in respect of non-competition, such contract shall govern Grantee’s permitted activities during the Restricted Period (or such other period as may be set forth in such contract) with, to the Executive’s knowledge, any such Person; orrather than this Section 8(c); (cd) contactDuring the Non-Solicit Period, approach the Grantee shall not directly or indirectly, on his or her own behalf or on behalf of any other person or entity, (i) solicit for the purpose of offering employment or hire, attempt to solicit or hire, or assist any other person in soliciting or hiring any employee, agent or retaining, or actually hire or retain any Person who is or was employed or retained by contractor of the Company or any of its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade induce any Person not to continue to be employed employee, agent or retained by contractor of the Company or any of its Affiliates or to terminate his or her employment or services her Employment or cease doing business with the Company or any of its Affiliates for any reason whatsoever or (ii) interfere with any business relationship between the Company or any of its Affiliates and any client or prospective client of the Company or any of its Affiliates or induce any client or prospective client to discontinue any business relationship with the Company or any of its Affiliates or to refrain from entering into a business relationship or transaction with the Company or any of its Affiliates; provided, provided that notwithstanding if the foregoingterms of any effective written individual contract entered into between the Company and the Grantee shall provide for different terms in respect of non-solicitation or non-competition, general solicitations of employment published such contract shall govern Grantee’s permitted activities during the Restricted Period (or such other period as may be set forth in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of contract) rather than this Section 5(c8(d). (d) Notwithstanding anything . The Restrictive Covenants are in addition to and do not supersede any rights the Company or any of its Affiliates may have in law or at equity or under any other agreement. By accepting the RSUs, the Grantee shall further agree that it is impossible to measure in money the damages which will accrue to the contrary Company or any of its Affiliates in this Section 5the event the Grantee breaches the Restrictive Covenants. Therefore, with respect if the Company or any of its Affiliates shall institute any action or proceeding to enforce the country provisions hereof, the Grantee shall agree to waive the claim or defense that the Company or any of Mexico, this Section 5 will only apply (its Affiliates has an adequate remedy at law and therefore will be limited) the Grantee shall agree not to activities assert in any such action or proceeding the claim or defense that are competitive with the businesses in which Company or any of its Affiliates has an adequate remedy at law. If at any time the Committee reasonably believes that the Grantee has breached any of the Mexican Subsidiaries Restrictive Covenants described in Sections 8(a) through 8(d), the Committee may suspend the vesting of Grantee’s RSUs pending a good faith determination by the Committee of whether any such Restrictive Covenant has been breached, it being understood that such suspension shall not cause the settlement to be delayed beyond the last date that settlement may occur pursuant to Section 4(b) hereof. If the Committee determines in good faith that the Grantee has breached any such Restrictive Covenants, the Grantee shall immediately forfeit any outstanding unvested RSUs and shall repay to the Company, upon demand, any Common Stock or cash issued upon the settlement of the Company engagesGrantee’s RSUs if the vesting of such RSUs occurred during such breach. The Executive acknowledges Grantee shall also be required to repay to the Company, in cash and agrees that: upon demand, any proceeds resulting from the sale or other disposition (1including to the Company) the time and geographical scope of Common Stock issued upon settlement of the restrictions of this Section 5 are reasonable; (2) Grantee’s RSUs if the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiariessale or disposition was effected at any time during such breach. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination foregoing shall not be a bar to or in any way diminish prejudice the Company’s right to enforce require the Grantee to account for and pay over to the Company on a pre-tax basis any such covenant in profit obtained by the Grantee as a result of any other jurisdictiontransaction constituting a breach of the Restrictive Covenants.

Appears in 1 contract

Samples: Performance Based Restricted Stock Unit Grant Agreement (Overseas Shipholding Group Inc)

Restrictive Covenants. The Executive agrees that he or she shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request In consideration of the Company or its Subsidiaries):receipt of this Award, the Participant agrees to be bound by this Section 10. (a) engage inThe Participant shall not, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit at any time during his or her name to be used in connection employment or other service with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries or Affiliates or during the twelve month period immediately following such Participant’s termination of employment or other service with the Company and all of its Subsidiaries and Affiliates (the “Restricted Period”), directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise (each, a “Position”)) that engages in any business or activity (a “Competitive BusinessActivity)) which competes with any services or products that, during the period of the Participant’s employment or other service with the Company or any of its Subsidiaries or Affiliates, the Company or any of its Subsidiaries or Affiliates (i) sold, licensed or provided; providedor (ii) had taken affirmative steps to commence selling, licensing or providing. Notwithstanding the foregoing, the Participant shall be permitted to acquire a passive stock or equity interest in such a business, provided that ownership the stock or other equity interest acquired is registered under the Securities Exchange Act of less 1934, as amended, and is not more than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing interest in such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;business. (b) During the Restricted Period, the Participant will not, directly or indirectly, recruit or otherwise solicit or induce any Person who is orcustomer, within subscriber or supplier of the prior twelve Company or its Subsidiaries or Affiliates to (12i) monthsterminate its arrangement with the Company or its Subsidiaries or Affiliates, was(ii) otherwise change its relationship with the Company or its Subsidiaries or Affiliates or (iii) establish any relationship with the Participant for any business purpose deemed competitive with any services or products that, during the period of the Participant’s employment or other service with the Company or any of its Subsidiaries or Affiliates, the Company or any of its Subsidiaries or Affiliates anywhere in North America sold or provided, or whose Affiliate is orhad taken affirmative steps to commence selling or providing. (c) During the Restricted Period, within the prior twelve Participant will not directly or indirectly, (12i) monthshire any employee, was a customer consultant or independent contractor of the Company or any of its Subsidiaries or persuade Affiliates or attempt to persuade (ii) recruit or otherwise solicit or induce any such Person not to be a customer employee, consultant or independent contractor of the Company or any of its Subsidiaries or Affiliates to reduce the amount of business that such customer does (x) terminate his or her employment or other arrangement with the Company or any of its Subsidiaries, Subsidiaries or enter into Affiliates or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which y) otherwise change his or her relationship with the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything Except as required in the faithful performance of the Participant’s duties and responsibilities to the contrary Company or its Subsidiaries or Affiliates, the Participant shall, in this Section 5perpetuity, maintain in confidence and shall not (i) directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for his or her benefit or the benefit of any person, firm, corporation or other entity any confidential or proprietary information or trade secrets of or relating to the Company or any of its Subsidiaries or Affiliates, including, without limitation, information with respect to the country Company’s or any of Mexicoits Subsidiaries or Affiliates’ operations, this Section 5 will only apply processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment or (ii) deliver to any person, firm, corporation or other entity any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. The parties hereby stipulate and therefore will be limited) to activities agree that as between them the foregoing matters are competitive with important, material and confidential proprietary information and trade secrets and affect the successful conduct of the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges Subsidiaries and agrees Affiliates (x) the Executive’s breach and any successor or assignee of the provisions Company or any of this Section 5 will cause its Subsidiaries or Affiliates). Upon termination of the Participant’s employment or other service with the Company irreparable harmand its Subsidiaries and Affiliates for any reason, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens Participant will promptly deliver to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executiveall correspondence, there is a reasonable probability of drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s eventual success on and its Subsidiaries’ and Affiliates’ customers, business plans, marketing strategies, products or processes. (e) Notwithstanding Section 10(d) hereof, the merits Participant may respond to a lawful and (z) if the Executive breaches valid subpoena or threatens to breach the provisions of this Section 5 and other legal process but shall give the Company (by vote of a majority the earliest possible notice thereof, and shall, as much in advance of the members return date of the Board) seeks an injunction against the Executivesuch subpoena as possible, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be make available to the Company for and its counsel the documents and other information sought and shall assist such breachcounsel in resisting or otherwise responding to such process. (f) The Participant agrees not to disparage the Company, including the recovery of money damages. If any of its Subsidiaries or Affiliates, any of their services, products or practices or any of their directors, officers, agents, representatives, stockholders or affiliates, either orally or in writing, at any time. (g) In the provisions event the terms of this Section 5 are 10 shall be determined by any court of competent jurisdiction to be wholly unenforceable by reason of its duration or partially unenforceablegeographic scope or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the Executive hereby agrees that this Agreement or any provision hereof maximum period of time for which it may be reformed so that enforceable, over the maximum geographical area as to which it is enforceable may be enforceable, or to the maximum extent permitted in all other respects as to which it may be enforceable, all as determined by law. If such court in such action. (h) Notwithstanding the foregoing, in any case in which the subject matter of the provisions any subsection of this Section 5 are determined 10 is covered in a written employment or other agreement between the Company or any of its Subsidiaries or Affiliates and the Participant, the terms of that agreement shall govern with respect to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionsubject matter.

Appears in 1 contract

Samples: Non Qualified Stock Option Award Agreement (Capital City Energy Group, Inc.)

Restrictive Covenants. The Executive agrees that he or she (a) During the Term and for the Restricted Period in the Restricted Area, you shall not, during directly or indirectly, (i) solicit, induce or cause any individual or entity with whom the Non-Compete PeriodCompany or Parent had a business relationship to reduce or terminate such Person’s business relationship with the Company or Parent or any of their affiliates or their successors or assigns; and you shall not, directly or indirectly indirectly, approach any such individual or entity for any such purpose, or authorize or assist in the taking of any of such actions for any such purpose or authorize or assist in the taking of any such actions by any individual or entity, (other than on behalf of or at the request of the Company or its Subsidiaries): (aii) engage inin any Restricted Activity, have an interest in(iii) acquire, or otherwise own in any manner, any interest in any entity that engages in any Restricted Activity, or that engages in any business, activity or enterprise that competes with any aspect of any of Restricted Activity, or (iv) be employed by interested in (whether as an owner, operatordirector, officer, partner, member, manager, employeejoint venturer, officerlender, directorshareholder, vendor, consultant, employee, advisor, agent, independent contractor or representativeotherwise), provide consulting or otherwise participate in the management services to, or permit his or her name to be used in connection with the activities operation of, any business entity that engages in any Restricted Activity or organizationin any business, engaged in a business activity or enterprise that is competitive competes with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”)Restricted Activity; provided, however, that this Section 10(a) shall not apply to the ownership of less than one five percent (15%) of the outstanding stock of any Person who has a class of securities that is publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;traded. (b) solicit During the Term and for the Restricted Period in the Restricted Area, you shall not, directly or indirectly (i) hire or offer employment to or seek to hire any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer employee of the Company or Parent or any successor or affiliate thereof, unless the Company or Parent first terminates the employment of such employee or gives its Subsidiaries written consent to such employment or offer of employment, (ii) induce, solicit, persuade or encourage (or in any manner attempt to induce, solicit, persuade or encourage), or cause or authorize any other individual or entity to induce, solicit, persuade or encourage, any such Person not to be a customer employee of the Company or Parent or any successor or affiliate thereof, to leave the employ of its Subsidiaries his or her employer, (iii) induce, solicit, persuade or encourage (or in any manner attempt to reduce the amount of induce, solicit, persuade or encourage), or cause or authorize any other individual or entity to induce, solicit, persuade or encourage, any individual or entity to cease, diminish or not commence doing business that such customer does with the Company or Parent or any of its Subsidiaries, successor or enter into affiliate thereof or seek to enter into (iv) disparage the Company or Parent or any agreement (to the extent such agreement is of a nature that is related to successor or affiliate thereof or the business in which the Company or Parent is engaged to any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orindividual or entity. (c) contactFor purposes of this Section 10, approach or solicit for (i) the purpose of offering employment to or hiring or retainingterm “Restricted Activity” means any activity that is, or actually hire would reasonably be deemed to be, competitive with (1) any aspect of the business in which the Company and/or Parent is engaged (A) as operated prior to the date of this Agreement or retain any Person who is or was employed or retained (B) as contemplated by the Company or its Affiliates Parent to be operated in the future as an employee during of the immediately preceding date of this Agreement, or (2) any business in which the Company and/or Parent and/or any of their affiliates are engaged or likely to engage as of the date hereof or as of the date of termination of your employment hereunder; (ii) the term “Restricted Period” means the earlier to occur of (1) five (5) years after the Start Date and (2) twelve (12) months months, or attempt to persuade if unenforceable for any Person not to continue to be employed or retained by reason, six (6) months, from the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes termination of this Section 5(c). Agreement; and (diii) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: term “Restricted Area” means (1) anywhere in the world where the Company’s and/or Parent’s business may be conducted from time and geographical scope of the restrictions of this Section 5 are reasonable; to time, (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; Australia, (3) the general public policy is not harmed by the restrictions State of this Section 5; Victoria, and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionMelbourne metropolitan area.

Appears in 1 contract

Samples: Asset Contribution Agreement (SFX Entertainment, INC)

Restrictive Covenants. A. The Executive parties agree that at the time this Agreement was entered, the business of Employer was the development, manufacture, marketing and/or sale of directly compressible and/or microencapsulated raw materials used in the processing of nutritional, pharmaceutical, personal care and/or food products (hereafter "the business of Employer"). Employee agrees that he or she shall not, during the Nonthirty-Compete Periodsix (36) consecutive months immediately following termination of Employee's employment with Employer, regardless of how, when or why that employment ends, Employee will not in any manner or in any capacity, directly or indirectly (indirectly, for himself/herself or any other than person or entity, actually or attempt to do any of the following: 1. Perform any of the same or similar responsibilities as Employee performed for Employer on behalf of a competitor that engages in the business of Employer. 2. Solicit, contact, divert, interfere with or at take away any customer of Employer and/or the request Companies that has conducted business or negotiations with Employer or the Companies during the twenty-four (24) months immediately preceding termination of employment. 3. Interfere with any of the Company suppliers of Employer and/or the Companies, including, without limitation, reducing in any material way the willingness or its Subsidiaries):capability of any supplier to continue supplying Employer and/or the Companies with their present or contemplated requirements. (a) engage in, have an interest in4. Solicit or interfere with the Employer's and/or the Companies' relationship with any of their employees or agents, or otherwise be employed by (whether as an ownerprovide the names of any of Employer's and/or the Companies' employees or agents, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used any third party. 5. Acquire any interest in connection with the activities of, any business that markets or organization, engaged in a business sells any product or product line that is competitive with a business in which any product or product line Employer sold during the Company or any of its Subsidiaries engages twenty-four (a “Competitive Business”); provided, that ownership of less than one percent (1%24) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the months immediately preceding termination of the Executive’s employment by the Companyemployment, the provisions of this except as permitted in Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)12 below. B. Employee further agrees that (d) Notwithstanding anything to the contrary s)he will not engage in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive activities listed above while employed by Employer. C. Employee acknowledges and agrees that: that his/her experience, knowledge and capabilities are such that (1s)he can obtain employment in unrelated pharmaceutical, chemical, nutritional, food, industrial, household, confectionery or other businesses, and that the enforcement of this paragraph 11 by way of injunction would not prevent Employee from earning a livelihood. Employee further agrees that if (s)he has any question(s) regarding the time and geographical scope of activities restricted by this Section 11, (s)he will, to avoid confusion or misunderstanding, submit the restrictions question(s) in writing to the Director, Human Resources of the Employer for a written response. Employee additionally agrees to promptly inform and keep the Employer advised of the identity of his/her employer (including any unit or division to which Employee is assigned), his/her work location, and his/her title and work responsibilities during the period covered by this Section 11. D. Employee agrees to fully disclose the terms of this Section 5 are reasonable; Agreement to any person or entity by which or with whom (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; s)he may hereafter become employed or to which (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harms)he may hereafter render services, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that Employer may, if desired, send a copy of this Agreement, or otherwise make the Executive commits provisions hereof known, to any such breach or threatens to commit any breach, entity. E. In the Company (by vote event of a majority breach by Employee of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions terms of this Section 5 are determined to be wholly or partially unenforceable11, the Executive hereby agrees that this Agreement or any provision hereof may period of time the obligations hereunder apply will be reformed so that it is enforceable automatically extended for a period of time equal to the maximum extent permitted by law. If any length of the provisions of this Section 5 are determined to be wholly or partially unenforceable time Employee is in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionbreach.

Appears in 1 contract

Samples: Employment and Confidential Information Agreement (Kv Pharmaceutical Co /De/)

Restrictive Covenants. The Executive 14.1 Each of the Shareholders agrees with the Company and the other Shareholder that he or she shall it will not, and will procure that each of the members of its Group will not, whether by itself, its employees or agents or otherwise howsoever, while such Shareholder remains the holder of any Shares and for two years from the date on which such Shareholder ceases to hold any Shares ("THE RESTRICTION PERIOD") directly or indirectly: (a) be engaged or interested in any capacity (whether for reward or otherwise) in any business which is or is about to be engaged in the development, production, distribution or sale of the Restricted Products or any of them or the supply of the Restricted Services or any of them in the Territory in competition with the Company, PROVIDED THAT this restriction shall not operate: (i) to prohibit any such engagement in which none of the duties or functions performed thereunder relate to the development, production, distribution or sale of the Restricted Products or any of them or the supply of the Restricted Services or any of them; (ii) to prohibit any party from holding in aggregate up to five per cent. of the issued share capital of any company which is or is about to be engaged in the development, production, distribution or sale of the Restricted Products or any of them or the supply of the Restricted Services or any of them in competition with the Company and the shares of which are listed or dealt in on a recognised Stock Exchange; (iii) to prohibit any party or any member of its Group from purchasing shares of any company which (according to its audited accounts for such period) in its most recent accounting period derived 10% or less of its revenues from the development, distribution or sale of the Restricted Products or any of them or the supply of the Restricted Services or any of them as aforesaid. (iv) to prohibit the "A" Shareholder from engaging in its business which the Parties understand and agree might or does involve the development, production, distribution and/or sale of products similar to the Restricted Products, and the supply of services similar to the Restricted Services in the event that the "A" Shareholder has transferred its shares to the "B" Shareholder under the provisions of clause 13 . The provisions of this clause 14.1(a)(iv) shall apply mutatis mutandis to the "B" Shareholder so that references to the "A" Shareholder are to the "B" Shareholder and references to the "B" Shareholder are to the "A" Shareholder. Notwithstanding any provision of this Agreement to the contrary, both Shareholders shall be free to engage in their business without restriction outside of the Territory. (b) solicit or entice away or endeavour to solicit or entice away from the Company any director or manager or salesman employed or otherwise engaged by the Company at any time during the Non-Compete previous year, whether or not such person would commit any breach of his contract of employment by reason of his leaving the service of the Company; (c) employ or otherwise engage any person who was at any time during the previous year employed or otherwise engaged by the Company and who by reason thereof is or is reasonably likely to be in possession of any confidential information relating to the Company. 14.2 Each of the Shareholders agrees with the Company and the other Shareholder that it will not, and will procure that each of the members of its Group will not, at any time during the Restriction Period, whether by itself, its employees or agents or otherwise howsoever, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, in any trade or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, any business or organizationbe associated with any person, firm, company or other organisation engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties trade or business activities of using the name "Xxxxxxx.xxx" or "Bonveno" or incorporating such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executivewords or; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 1 contract

Samples: Joint Venture Agreement (Divot Golf Corp)

Restrictive Covenants. The Executive agrees that he or she shall not(a) For a period of [***] following the Closing Date (the “Restricted Period”), during the Non-Compete Periodneither Seller nor its controlled Affiliates shall, directly or indirectly, own, invest in, design, develop, manufacture, market, sell or license any [***], or manage, consult, direct any business activity involving any [***]; provided, however, this Section 4.3(a) foregoing will not: (i) prohibit Seller or any of its controlled Affiliates from directly or indirectly (other acquiring or owning equity interests of a public company constituting less than on behalf of or at the request 3% of the Company outstanding voting power thereof; (ii) prohibit Seller or its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used controlled Affiliates from performing its obligations in accordance with any agreement entered into in connection with the activities oftransactions contemplated by this Agreement, including the Transition Services Agreement, or (iii) apply to any unaffiliated third party that acquires Seller, any business or organization, engaged in a business that is competitive with a business in which the Company controlled Affiliate of Seller or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor their respective assets or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;businesses. (b) solicit During the Restricted Period, neither Purchaser nor its controlled Affiliates shall, directly or indirectly, own, invest in, design, develop, manufacture, market, sell or license any Person who is or, within the prior twelve (12) months, was[***], or whose Affiliate is ormanage, within the prior twelve consult, direct any business activity involving any [***]; provided, however, this Section 4.3(b) foregoing will not: (12i) months, was a customer of the Company prohibit Purchaser or any of its Subsidiaries controlled Affiliates from directly or persuade indirectly acquiring or attempt to persuade any such Person not to be owning equity interests of a customer public company constituting less than 3% of the Company outstanding voting power thereof; (ii) prohibit Purchaser or any of its Subsidiaries controlled Affiliates from directly or to reduce indirectly performing any such activities for or in respect of the amount Specified Product, or any other product currently owned, licensed or marketed by Purchaser as of business that such customer does the date of this Agreement; or (iii) prohibit Purchaser or its controlled Affiliates from performing its obligations in accordance with any agreement entered into in connection with the Company or any of its Subsidiariestransactions contemplated by this Agreement, or enter into or seek to enter into any agreement (to including the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; orTransition Services Agreement. (c) contact, approach or solicit Each of Purchaser and Seller (for itself and on behalf of its controlled Affiliates) agrees that the purpose duration and geographic scope of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary covenants set forth in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 4.3 are reasonable; (2) . In the burden on event that any court determines that the Executive of complying with duration or the restrictions of this Section 5 geographic scope, or both, are unreasonable and that such provision is not unreasonable; (3) unenforceable to any extent, the general public policy is not harmed by Parties agree that the restrictions of this Section 5; provision shall remain in full force and (4) the restrictions of this Section 5 are necessary effect for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictiongreatest time period

Appears in 1 contract

Samples: Asset Purchase Agreement (Emergent BioSolutions Inc.)

Restrictive Covenants. The Executive agrees that he or she shall (a) Employee will not, during the Non-Compete Period, directly or indirectly (other than on behalf term of or at the request of his employment with the Company or its Subsidiaries): and for one year thereafter (a) engage inthe "Restricted Period"), have an interest inin any capacity (including, or otherwise be employed by (whether as an but not limited to, owner, operatormember, partner, membershareholder, managerconsultant, advisor, financier, agent, employee, officer, director, manager or otherwise), whether directly, indirectly or through affiliates, within a 100 mile radius of the Company's principal office in Oak Ridge, Tennessee, for his own account or for the benefit of any person or entity, establish, engage in or be connected with (i) the Business (as defined herein) or (ii) any business which is similar to or in competition with the business conducted by the Company (or any subsidiaries or affiliates thereof) during the Restricted Period. (b) Employee will not, during the Restricted Period, in any capacity (including, but not limited to, owner, member, partner, shareholder, consultant, advisor, financier, agent, employee, officer, director, manager or representativeotherwise), provide consulting whether directly, indirectly or management services tothrough affiliates, for their own account or permit his for the benefit of any other person or her name to be used entity, including without limitation, a person or entity in connection the Business or any business in competition with the activities ofCompany (or any subsidiaries or affiliates thereof), during the Restricted Period: (i) Solicit, hire, contract, engage, retain, divert, induce or accept business from or otherwise take away or interfere with any business customer of the Company (or organization, engaged in a business that is competitive any subsidiaries or affiliates thereof) or any prospective customer of the Company (or any subsidiaries or affiliates thereof) with a business in which the Company (or any subsidiaries or affiliates thereof) has had a substantial business contact during the Restricted Period for the purpose of its Subsidiaries engages providing the same or similar services or goods as that of the Company (a “Competitive Business”or any subsidiaries or affiliates thereof); providedand/or (ii) Solicit, that ownership of less than one percent (1%) divert or induce any of the outstanding stock employees or consultants of the Company (or any subsidiaries or affiliates thereof) to leave or to work for Employee or any person or entity with which Employee is connected. (c) Employee will not, at any time after the date hereof, whether directly, indirectly or through affiliates, disclose, communicate or divulge to any person or entity, or use for the benefit of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedperson or entity, furtherany secret, that, providing investment banking confidential or legal services to a Competitive Business as an independent consultant, independent advisor proprietary knowledge or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived information with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, conduct or whose Affiliate is or, within the prior twelve (12) months, was a customer details of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained Business by the Company (or its Affiliates as an employee during the immediately preceding twelve (12any subsidiaries or affiliates thereof) months or attempt to persuade any Person including, but not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; providedlimited to, that notwithstanding the foregoingknow-how, general solicitations of employment published in a journalprocesses, newspaper or other publication of general circulation and not specifically directed towards such customers, prospects, costs, pricing information, trade secrets, products, employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)agents, representatives, policies, marketing methods and strategies, finances, financial condition and suppliers. (d) Notwithstanding anything Neither the Company nor Employee will, at any time after the date hereof, whether directly, indirectly or through affiliates, publish or communicate disparaging or derogatory statements or opinions about the other (including but not limited to, disparaging or derogatory statements or opinions about the Company's and/or its subsidiaries' or affiliates' management, products or services) to any third party. It shall not be a breach of this Section for either party to testify truthfully in any judicial or administrative proceeding or to make statements or allegations in legal filings that are based on his reasonable belief and are not made in bad faith. (e) Employee agrees that at no time will it take any action, directly or indirectly, to circumvent its respective obligations under, or to deprive the contrary Company (or its subsidiaries or affiliates) of any benefit intended by, any provision of this Agreement. Without limiting the generality of the foregoing, Employee shall not in any way assist or enable any person or entity to take any action that Employee is prohibited from taking himself pursuant to this Agreement. (f) Employee and the Company agree that any breach by either party of the covenants and agreements contained in this Section 52 may result in irreparable injury to the other (including, with respect to the country Company, its subsidiaries and affiliates) for which money damages may not adequately compensate the injured party and, therefore, in the event of Mexicoany such breach, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches Employee or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on , as the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executivecase may be, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled (in addition to temporary any other rights and permanent injunctive relief from a remedies which it may have at law or in equity) to seek to have an injunction issued by any competent court of competent jurisdictionequity enjoining and restraining Employee or the Company, without posting any bond or other security and without as the necessity of proof of actual damage, in addition tocase may be, and any other person or entity involved therein from continuing such breach. (g) If any portion of the covenants and agreements contained in this Section 2, or the application thereof, is construed to be invalid or unenforceable, then the other portions of such covenant(s) or agreement(s) or the application thereof shall not in lieu of, such other remedies as may be available affected and shall be given full force and effect without regard to the Company for such breach, including the recovery of money damagesinvalid or unenforceable portions. If any covenant or agreement in this Section 2 is held to be unenforceable because of the provisions of this Section 5 are determined to be wholly or partially unenforceablearea covered, the Executive hereby agrees that this Agreement duration thereof, or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of scope thereof, then the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, court making such determination shall not have the power to reduce the area and/or duration and/or limit the scope thereof, and the covenant or agreement shall then be a bar to or enforceable in any way diminish its reduced form. (h) The term, "Business", as used herein, means the Company’s right to enforce any such covenant in any other jurisdictiondesign, development, manufacture, marketing and/or sale of the "ALARM" hand-held sensor capable of detecting radiological, chemical and biological agents, and all derivative platforms and intellectual property.

Appears in 1 contract

Samples: Severance Agreement (Advanced Integrated Management Services Inc)

Restrictive Covenants. The Executive agrees that he or she shall (a) Employee will not, during the Non-Compete Periodperiod of his employment by or with any member of the Cotelligent Group and for a period of one (1) year immediately following the termination of his employment, for any reason whatsoever, directly or indirectly (other than indirectly, for himself or on behalf of or in conjunction with any other person, persons, company, partnership, corporation or business of whatever nature: (i) call upon, or cause others to call upon, any person who is, at that time, within 100 miles of where Cotelligent or where any of its subsidiaries conducts business (the request "Territory"), an employee of Cotelligent (including its subsidiaries) in a sales representative or managerial capacity for the purpose or with the intent of enticing such employee away from or out of the Company or employ of Cotelligent (including its Subsidiaries): (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representativesubsidiaries), provide consulting or management services to, or permit provided that Employee shall be permitted to call upon and hire any member of his or her name immediate family; (ii) call upon, or cause others to be used in connection with the activities ofcall upon, any person or entity which is, at that time, or which has been, within one (1) year prior to that time, a customer of Cotelligent (including its subsidiaries) within the Territory for the purpose of soliciting or selling products or services in direct competition with Cotelligent (including its subsidiaries) within the Territory; (iii) call upon, or cause others to call upon, any prospective acquisition candidate, on Employee's own behalf or on behalf of any competitor in the computer consulting and/or software application business, which candidate was either called upon by Cotelligent (including its subsidiaries) or for which Cotelligent (including its subsidiaries) made an acquisition analysis, for the purpose of acquiring such entity; or (iv) disclose customers, whether in existence or proposed, of Cotelligent (including its subsidiaries) to any person, firm, partnership, corporation or business for any reason or organizationpurpose whatsoever except to the extent that Cotelligent (including its subsidiaries) has in the past disclosed such information to the public for valid business reasons. Notwithstanding the above, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less foregoing covenants shall not be deemed to prohibit Employee from acquiring as an investment not more than one percent (1%) of the outstanding capital stock of any publicly a competing business, whose stock is traded corporation on a national securities exchange or over-the-counter. (b) Because of the difficulty of measuring economic losses to Cotelligent (including its subsidiaries) as a result of a breach of one of the foregoing covenants and because of the immediate and irreparable damage that could be caused to Cotelligent (including its subsidiaries) for which it would have no other adequate remedy, Employee agrees that the foregoing covenants may be enforced by Cotelligent (including its subsidiaries) in the event of breach by him, by injunctions and restraining orders. (c) It is agreed by the parties that the foregoing covenants in this Section 3 impose a reasonable restraint on Employee in light of the activities and business of Cotelligent (including its subsidiaries) on the date of the execution of this Agreement and the current plans of Cotelligent; but it is also the intent of Cotelligent and Employee that such covenants be construed and enforced in accordance with the changing activities and business of Cotelligent throughout the term of this covenant. For example, if, during the term of this Agreement, Cotelligent (including its subsidiaries) engages in new and different activities, enters a new business or establishes new locations for its current activities or business in addition to or other than the activities or business enumerated under the Recitals above or the locations currently established therefore, then Employee will be precluded from soliciting the customers or employees of such new activities or business or of such new location within 100 miles of its operating location(s) through the term of this covenant. It is further agreed by the parties hereto that, in the event that Employee shall cease to be employed hereunder, and shall enter into a business or pursue other activities not in competition with Cotelligent (including its subsidiaries), or engage in similar activities or business in locations the operation of which, under such circumstances, do not violate another provision of this Section 3, Employee shall not be deemed to be chargeable with a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, 3 if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(aCotelligent (including its subsidiaries) shall be deemed waived with respect to thereafter enter the Executive; same, similar or a competitive (bi) solicit any Person who is orbusiness, within the prior twelve (12ii) monthscourse of activities or (iii) location, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)applicable. (d) Notwithstanding anything to the contrary The covenants in this Section 53 are severable and separate, with respect and the unenforceability of any specific covenant shall not affect the provisions of any other covenant. Moreover, in the event any court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the parties that such restrictions be enforced to the country fullest extent which the court deems reasonable, and the Agreement shall thereby be reformed. (e) All of Mexico, the covenants in this Section 5 3 shall be construed as an agreement independent of any other provision in this Agreement, and the existence of any claim or cause of action of Employee against Cotelligent (including its subsidiaries), whether predicated on this Agreement or otherwise, will only apply not constitute a defense to the enforcement by Cotelligent (and therefore will be limitedincluding its subsidiaries) to activities of such covenants. It is specifically agreed that are competitive with the businesses in which any period of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: one (1) year stated at the time and geographical scope of the restrictions beginning of this Section 5 are reasonable; (2) 3, during which the burden on the Executive agreements and covenants of complying with the restrictions Employee made in this Section 3 shall be effective, shall be computed by excluding from such computation any time during which Employee is in violation of any provision of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction.

Appears in 1 contract

Samples: Employment Agreement (Cotelligent Inc)

Restrictive Covenants. The In consideration of the foregoing, the Executive agrees that he or she the Executive shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):: (a) engage induring the term of his employment and, have an interest inif the Company shall terminate the Executive for Cause or if the Executive voluntarily terminates his employment with the Company without Good Reason, for a period of one (1) year following the date of termination (the "Noncompete Period"), directly or otherwise be employed by (whether indirectly, alone or as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, employee, consultant, advisoragent, independent contractor, or representative)security holder, provide consulting of any company or management services tobusiness, engage in, or permit his finance, or her name to be used in connection provide financial assistance with the activities ofrespect to, any business activity competitive with or organization, similar to that engaged in a business that is competitive with a business in which the Company by NTI, Newco or any of its Subsidiaries engages their subsidiaries, successors, or assigns (a “Competitive the "NTI Companies") as of the date hereof (the "NTI Business"); provided, however, that the beneficial ownership of less than one five percent (15%) of the outstanding stock any class of securities of any publicly entity having a class of equity securities actively traded corporation on a national securities exchange or over-the-counter market shall not be deemed deemed, in and of itself, to be a violation violate the prohibitions of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutiveSection; (b) solicit during the Noncompete Period, directly or indirectly, (i) induce any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any NTI Company to patronize any business which is directly or indirectly in competition with the NTI Business conducted by any of its Subsidiaries the NTI Companies; (ii) canvass, solicit or persuade or attempt to persuade accept from any such Person not to be which is a customer of the Company or NTI Business conducted by any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledgeNTI Companies, any such Personcompetitive business, provided, however, that the Executive may cause OneofUs to furnish replacement products to former customers of OneofUs for the sole purpose of fulfilling OneofUs' product warranty obligations to such former customers, if any; oror (iii) request or advise any customer or other business relationship of the NTI Business conducted by any of the NTI Companies to withdraw, curtail or cancel any such person's business with the NTI Companies or their successors; and (c) contactduring the Noncompete Period, approach directly or solicit for indirectly, employ any person who was employed by the purpose of offering employment to or hiring or retainingNTI Companies, or actually hire or retain in any Person who is or was employed or retained by manner seek to induce any employee of the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt NTI Companies to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate leave his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)employment. (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdiction

Appears in 1 contract

Samples: Employment Agreement (Nstor Technologies Inc)

Restrictive Covenants. The Executive agrees 13.1. Each of the Sellers and each of Mr N.J. Xxxxxx and Xx X.X.X. Xxxxxx covenants with the Purchaser (and in relation to Xxxxxx to the US Purchaser) for itself/himself and for the benefit of the Group Companies that it/he or she shall notnot and shall procure that no Affiliate of it/him/her shall for a period of 3 years from Closing, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):Group Companies: (a) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used concerned in connection with the activities of, any business or organization, engaged in a carrying on business that which is competitive with a business any of the businesses carried on by the Group Companies at Closing in the geographic region(s) in which the Company Group Companies are active (with the exception of Strengers or any his Affiliates to the extent it pertains to the provision of its Subsidiaries engages (a “Competitive Business”); providedtax and compliance advice to clients, that ownership which for the avoidance of less than one percent (1%) of the outstanding stock of any publicly traded corporation doubt shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executiveinclude operational advice); (b) solicit any Person who is orpersuade, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade cause or attempt to persuade any such Person not distributor, commercial agent, employee or independent contractor of, or natural person engaged on the basis of a management or similar agreement by, the Group, to be a customer of the Company or any of terminate its Subsidiaries or to reduce the amount of business that such customer does relationship with the Company or any of its SubsidiariesGroup, or enter into employ or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, engage any such Person; orperson within 12 (twelve) months after the effective termination of such person’s relationship with the Group; (c) contactpersuade, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months cause or attempt to persuade any Person not to continue to be employed or retained by customer of the Company or its Affiliates or Group to terminate his its relationship with the Group, or her employment take any action that may result in the impairment of such relationship including by seeking to obtain orders from, or offering goods or services with similar to or competitive to Group to, any person who has been a customer of the Company or its Affiliates; provided, that notwithstanding Group within 12 (twelve) months immediately preceding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c).Closing Date; (d) Notwithstanding anything persuade, cause or attempt to persuade any supplier of the Group to terminate its relationship with the Group, or take any action that may result in the impairment of such relationship including by soliciting or enticing away from the Group any supplier who regularly supplied goods or services to the contrary Group within 12 (twelve) months immediately preceding the Closing Date for the purpose of providing competitive or similar goods or services as Group; and/or (e) persuade, cause or attempt to persuade any other person doing business with the Group to terminate its relationship with the Group, or take any action that may result in this Section 5, with respect the impairment of such relationship. 13.2. Each of the Sellers and each of Mr N.J. Xxxxxx and Xx X.X.X. Xxxxxx undertakes and covenants to the country Purchasers that they will not, at any time after Closing, either alone or jointly with others, directly or indirectly use or procure or permit the use of Mexicoany name or names identical or similar to, or including the word "Bloomia" or any distinctive mark, style or logo used byany Group Company in connection with any activity whatsoever. 13.3. For the purposes of this Section 5 will only apply (and therefore will be limited) clause 13, any reference to activities that are competitive with the businesses in which Business includes a reference to any expansion or innovation of the Business actually commenced or fully developed, but not yet marketed by any Group Company at the Closing Date. 13.4. In the event of any breach by any Seller, Mr N.J. Botman or Xx X.X.X. Xxxxxx of any of its/his obligations under this clause 13 and without any notice or prior announcement on the Mexican Subsidiaries part of the Company engages. The Executive acknowledges and agrees that: Purchaser or the US Purchaser being required, the relevant Seller, Mr N.J. Botman or Xx X.X.X. Xxxxxx (1as the case may be) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote shall upon receipt of a majority notice of default pay a penalty to the members Purchaser (or in the case of Xxxxxx to the BoardUS Purchaser) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits USD 300,000 for any such breach or threatens and a penalty of USD 5,000 for every day such breach continues. The Parties acknowledge the importance of the obligations in this clause 13 for the Purchaser and the US Purchaser and that the penalty amounts represent a reasonable estimate of the damage likely to commit any breachbe suffered by the Purchaser, the Company (by vote US Purchaser and/or the Group Companies if a Seller, Mr N.J. Botman or Xx X.X.X. Xxxxxx breaches any of a majority of its/his obligations under this clause 13. Notwithstanding the members of the Board) foregoing, such penalties shall be entitled payable to temporary the Purchaser and permanent injunctive relief from the US Purchaser without prejudice to the Purchasers' right to seek full compensation for all damages incurred as a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu result of, such other remedies as may be available to the Company for or in connection with such breach, including the recovery of money damages. If any of the provisions and its right to demand performance of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that Agreement. 13.5. Each of Mr N.J. Xxxxxx and Xx X.X.X. Xxxxxx shall co-sign this Agreement or any provision hereof may be reformed so that it is enforceable to for the maximum extent permitted by law. If any of the provisions purpose of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionclause 13.

Appears in 1 contract

Samples: Share Purchase Agreement (Lendway, Inc.)

Restrictive Covenants. The Executive In exchange for the consideration described herein, Consultant also expressly and voluntarily covenants and agrees that he or she until March 31, 2022, Consultant shall not, during the Non-Compete Period, directly or indirectly (indirectly, by agency, as a director, officer, employee or consultant, through a corporation, partnership, limited liability company, or by any other than on behalf of artifice or at the request of the Company or its Subsidiaries):device: (a) engage in, have an interest inEngage in activities or business, or otherwise be employed by establish any new businesses, in any geographic area of any state or country (whether as an owneri) in which Consultant was physically located at the time Consultant provided services in furtherance of the business interests of the Company, operator(ii) for which Consultant had supervisory responsibility (in whole or in part), partnerif any, member, manager, employee, officer, director, consultant, advisoron behalf of the Company, or representative), provide consulting or management services to, or permit his or her name (iii) to be used in connection with which Consultant was assigned by the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”)Company; provided, in each case, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing Consultant provided such services is not the primary duties or business activities of had such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, responsibility or assignment within the prior twelve (12) monthsmonths prior to the termination of Consultant’s employment (any such area, wasthe “Restricted Area”), or whose Affiliate is or, within that are substantially in competition with the prior twelve (12) months, was a customer business of the Company or any of its Subsidiaries affiliates as of the date hereof, including (i) selling goods or persuade services of the type sold by the Company or attempt to persuade any such Person of its affiliates in the Restricted Area, over which Consultant had management oversight and/or responsibility in his position as Executive Vice President, Brink’s Global Operations and Brink’s Global Services, except that Consultant may sell any goods or services that were not sold or to be a sold by the Company or any of its affiliates at any time during Consultant’s employment with the Company or any of its affiliates, (ii) soliciting any customer or client or prospective customer or client of the Company or any of its Subsidiaries affiliates to purchase any goods or to reduce the amount of business that such customer does with services sold by the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which affiliates from anyone other than the Company or any of its Subsidiaries engageaffiliates, or servicing any such customer or client or prospective customer or client in any way in connection with or relating to the goods or services sold by the Company or any of its affiliates, (iii) interfering with, or attempting to interfere with, business relationships between the Company or any of its affiliates and the suppliers, partners, members or investors of the Company or any of its affiliates, and (iv) assisting any person in any way to do, or attempt to do, anything prohibited by clauses (i), (ii) or (iii) above; (b) Perform services in the business of armored vehicle transportation, secure international transportation of valuables, coin processing services, currency processing services, cash management services, safe and safe control services, cash payment services, security and guarding services, deposit processing services/daily overnight credit check imaging or jewel or precious metal vaulting for Garda, Xxxxxx, Xxxxxx or any other direct competitor of the Company in the Restricted Area similar to the Executive’s knowledge, any such Person; services Consultant performed for the Company or its affiliates; or (c) contactPerform any action, approach activity or solicit course of conduct that is substantially detrimental to the Company or any of its affiliates or to the business reputation of the Company or any of its affiliates, including (i) soliciting, recruiting or hiring any employees of the Company or any of its affiliates or persons who have worked for the purpose Company or any of offering its affiliates, (ii) soliciting or encouraging any employee of the Company or any of its affiliates to leave the employment of the Company or any of its affiliates or intentionally interfering with the relationship of the Company or any of its affiliates with any such employee, and (iii) assisting any person in any way to or hiring or retainingdo, or actually hire attempt to do, anything prohibited by clauses (i) or retain any Person who is or was employed or retained (ii) above. Consultant specifically acknowledges that, during the course of his employment by the Company or its Affiliates as an employee during Executive Vice President, Brink’s Global Operations and Brink’s Global Services, he was exposed to, and played a crucial role in, the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation development and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any implementation of the Mexican Subsidiaries of Company’s strategic business operations, financial performance, marketing strategy, and plans for existing and future products and services in the Company engagesRestricted Area. The Executive acknowledges and As such, Consultant agrees that: (1) that the time and geographical geographic scope of the restrictions of set forth in this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 7 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are no more broad than reasonably necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of protect the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionlegitimate business interests.

Appears in 1 contract

Samples: Consulting Agreement (Brinks Co)

Restrictive Covenants. (a) NONCOMPETITION. (i) During the Agreement Term, and for a period ending on the later of (I) the fifth anniversary of the Effective Date or (II) two years after termination of the Executive's employment with the Company (the "RESTRICTIVE PERIOD"): (A) The Executive agrees that he or she shall not, during without the Non-Compete Periodexpress written consent of the Board, be employed by, serve as a consultant to, or otherwise assist or directly or indirectly provide services to a Competitor (other than on behalf of or at the request of the Company or its Subsidiaries): as defined below) if: (a1) engage in, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management such services to, or permit his or her name are to be used in connection provided with the activities of, respect to any business or organization, engaged in a business that is competitive with a business location in which the Company or a Subsidiary does business, or with respect to any location in which the Company or a Subsidiary has devoted material resources to doing business; or (2) the trade secrets, confidential information, or proprietary information (including, without limitation, confidential or proprietary methods) of its the Company and the Subsidiaries engages to which the Executive had access could reasonably be expected to benefit the Competitor if the Competitor were to obtain access to such secrets or information. (a “Competitive Business”); providedB) The Executive shall not, that without the express written consent of the Board, directly or indirectly own an equity interest in any Competitor (other than ownership of 1% or less than one percent (1%) of the outstanding stock of any publicly traded corporation listed on a national stock exchange or included in the NASDAQ System). (C) The Executive shall not be deemed not, without the express written consent of the Board, solicit or attempt to be a violation of this Section 5 solely solicit any party who is then or, during the twelve-month period prior to such solicitation or attempt by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Companywas (or was solicited to become), the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer or supplier of the Company or a Subsidiary, or a user of the services provided by the Company or a Subsidiary. (D) The Executive shall not without the express written consent of the Board, solicit, entice, persuade, induce or hire any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of individual who is employed by the Company or any of its Subsidiaries Subsidiary (or was so employed within 90 days prior to the Executive's action) to terminate or refrain from renewing or extending such employment or to reduce the amount of business that such customer does become employed by or enter into contractual relations with any other individual or entity other than the Company or any of its SubsidiariesSubsidiary, or enter into or seek to enter into any agreement (to and the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, Executive shall not approach any such Person; or (c) contact, approach employee for any such purpose or solicit for the purpose of offering employment to authorize or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services knowingly cooperate with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations taking of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (actions by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionindividual or entity.

Appears in 1 contract

Samples: Employment Agreement (Emtec Inc/Nj)

Restrictive Covenants. The Executive (a) In order for the Purchaser to have and enjoy the full benefit of the Business, and as a material inducement to the Purchaser to enter into this Agreement (without such inducement the Purchaser would not have entered into this Agreement), each Seller agrees that he or she it shall not, during the Non-Compete Period, directly or indirectly (whether by itself, through an Affiliate, or in partnership or conjunction with any other than on behalf of or at the request of the Company or its SubsidiariesPerson): (ai) engage infor a period of three (3) years commencing from the Closing Date, undertake, participate, carry on, be engaged or have an any financial or other interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, in any other manner advise or representative), provide consulting or management services to, or permit his or her name to be used assist any other Person in connection with with, the activities of, operation of any business or organization, engaged Competing Business in a business that is competitive with a business the United States other than: (A) making passive investments in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one up to five percent (15%) of the outstanding stock publicly-traded securities of any publicly traded corporation shall not be deemed to be Person engaged in a violation of this Section 5 solely by reason thereofCompeting Business; provided, further, that, providing investment banking neither the Sellers nor any of their Affiliates participate in the management or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities governance of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the ExecutivePerson; (bB) solicit any Person who is or, within exercising their rights or complying with their obligations under this Agreement or the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personother Transaction Documents; or (cC) contactdirectly or indirectly engaging in any of the Sellers’ Other Businesses. (ii) for a period of two (2) years commencing from the Closing Date, approach solicit, entice, encourage or solicit for the purpose of offering employment to or hiring or retainingintentionally influence, or actually hire attempt to solicit, entice, encourage or retain influence, any Person who is or was employed then (or retained at any time during the six (6) month period prior thereto) a director, officer, employee or consultant of the Purchaser (excluding any consultants of the Purchaser, its Affiliates or the Business, who were also, prior to the date of this Agreement, consultants of either of the Sellers in relation to the Sellers’ Other Businesses), any of its Affiliates, or the Business to resign or leave the employ or service of the Purchaser, any of its Affiliates or the Business or otherwise hire, employ, engage or contract any such Person to perform services; provided, neither of the Sellers nor any of their Affiliates shall be precluded from (A) soliciting or hiring any such director, officer, employee or consultant who has been terminated by the Company Purchaser or its Affiliates as an (including, after the Closing) or (B) soliciting any person in a general or public solicitation (including by a bona fide search firm) not targeted at employees of the Purchaser or any of its Affiliates, it being understood that the Sellers shall not be restricted from engaging in general or public solicitations or advertising not targeted at any such employee of the Purchaser or its Affiliates; or (iii) for a period of three (3) years commencing from the Closing Date, solicit, entice, encourage or intentionally influence, or attempt to solicit, entice, encourage or influence, any customer of the Business (including any Person who has been a customer of the Business at any time during the immediately preceding twelve (12) months month period before the Closing) to alter, reduce or attempt to persuade terminate its business relationship with the Business, it being understood that any Person not to continue to be employed offers or retained sales by the Company Sellers or its their Affiliates of anything that does not constitute or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in arise from a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors Competing Business shall not be deemed to constitute solicitation for purposes of violate this Section 5(c)covenant. (db) Notwithstanding anything to the contrary set forth in this Agreement (including Section 511.11), with respect to in the country event of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s a breach or threatened breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are 6.12 (the “Restrictive Covenants”): (i) the Purchaser and its Affiliates shall have the right and remedy, without regard to any other available remedy, to (A) have the Restrictive Covenants specifically enforced by any court of competent jurisdiction and (B) have issued an injunction restraining any such breach or threatened breach without posting of a bond; it being understood that any breach of any of the Restrictive Covenants would cause irreparable and material harm to the Purchaser and its Affiliates, the amount of which cannot be readily determined and as to which neither the Purchaser nor any of its Affiliates will have any adequate remedy at law or in damages; (ii) it is the desire and intent of the parties hereto that the Restrictive Covenants be enforced to the fullest extent permissible under the Laws, Orders and public policies applied in each jurisdiction in which enforcement is sought and if any Restrictive Covenant shall be adjudicated finally to be wholly invalid or partially unenforceable, such Restrictive Covenant shall be deemed amended to the Executive hereby agrees extent necessary in order that such provision be valid and enforceable, the remainder of such Restrictive Covenant shall not thereby be affected and shall be given full effect without regard to invalid portions and such amendment shall apply only with respect to the operation of the Restrictive Covenant in the particular jurisdiction in which such adjudication is made; and (iii) the parties acknowledge and agree that the Restrictive Covenants are necessary for the protection and preservation of the value and the goodwill of the Business contemplated to be acquired by the Purchaser hereunder and are reasonable and valid in geographical and temporal scope and in all other respects. (c) Except with respect to the individual set forth on Schedule 6.12(c) of the Disclosure Letter, for a period of two (2) years commencing from the Closing Date, the Purchaser shall not solicit, entice, encourage or intentionally influence, or attempt to solicit, entice, encourage or influence, any Person who is or was then (or at any time during the six (6) month period prior thereto) a director, officer, employee or consultant of a Seller or any of its Affiliates who was introduced to the Purchaser or its representatives during the negotiation of this Agreement or any provision hereof may be reformed so that it is enforceable other Transaction Documents to resign or leave the maximum extent permitted by law. If employ or service of such Seller or any of its Affiliates, or otherwise hire, employ, engage or contract any such Person to perform services; provided, the provisions Purchaser and any of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination its Affiliates shall not be a bar to precluded from (A) soliciting or in any way diminish the Company’s right to enforce hiring any such covenant director, officer, employee or consultant who has been terminated by a Seller or its Affiliates (including, after the Closing) or (B) soliciting any person in a general or public solicitation (including by a bona fide search firm) not targeted at employees a Seller or any other jurisdictionof its Affiliates, it being understood that the Purchaser shall not be restricted from engaging in general or public solicitations or advertising not targeted at any such employee of a Seller or its Affiliates.

Appears in 1 contract

Samples: Stock and Asset Purchase Agreement (Scholastic Corp)

Restrictive Covenants. The Executive agrees (a) Except as set forth on Schedule 7.14(a), for a period of five years after the Closing Date (the “Restricted Period”), Seller and Seller Parent hereby covenant and agree that he or she they shall not, during the Non-Compete Period, directly or indirectly through one or more of their Affiliates or Representatives, (other than on behalf of or at the request of the Company or its Subsidiaries): (ai) engage engage, invest in, have an interest inown, or otherwise manage, operate, finance, control, advise, render services to, be employed by any Person (whether including direct competitors of Buyer) engaged in any business or activity that competes with the Business as an ownerconducted on the Effective Date or on the Closing Date in the States of New York, operator, partner, member, manager, employee, officer, director, consultant, advisor, New Jersey and Connecticut; (ii) use any names licensed to Buyer in any business that competes with the Business; or representative), provide consulting (iii) use the trade names “Xxxx Clinical Labs” or management services to, “Enzo Labs” or permit his or her any other confusingly similar trade name to be used that combines the names “Xxxx” and “labs” in connection with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive;kind. (b) solicit any Person who is orDuring the Restricted Period, within the prior twelve (12) monthsSeller and Seller Parent hereby covenant and agree that they shall not, wasdirectly or indirectly through one or more of their Affiliates or Representatives cause, induce or whose Affiliate is orsolicit, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company cause, induce or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiariessolicit, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engagei) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed an employee (including any temporary or retained by leased employees), consultant or independent contractor of the Company Business on, or during the 12 months prior to, the Closing Date; or (ii) any Person who is or was an employee (including any temporary or leased employees), consultant or independent contractor of Buyer or any of its Affiliates as an employee at any time during the immediately preceding twelve Restricted Period with whom Seller or Seller Parent (12as applicable) months has or has had contact (or with respect to whom Seller or Seller Parent obtains or obtained confidential information) during the Restricted Period to (A) terminate such Person’s employment or consulting relationship with Buyer or any of Buyer’s Affiliates; (B) in any way interfere with the relationship between such Person and Buyer or any of its Affiliates; or (C) hire, retain, employ or otherwise engage, or attempt to persuade hire, retain, employ or otherwise engage, such individual as an employee, independent contractor or otherwise, unless (x) such individual’s employment with Buyer has been involuntarily terminated by Buyer or its Affiliate or (y) such individual’s employment has been voluntarily terminated by such employee not less than 12 months prior to any solicitation from Seller or Seller Parent or any of its Affiliates. (c) During the Restricted Period, Seller and Seller Parent hereby covenant and agree that they shall not, directly or indirectly through one or more of their Affiliates or Representatives: (i) solicit, induce or otherwise cause, or attempt to solicit, induce or otherwise cause, any customer, supplier, licensor, licensee or any prospective customer, supplier, licensor or licensee that has been contacted or targeted for contact by Seller or Seller Parent on or before the Closing Date, or any other Person not that had, has or is expected to continue have a business relationship with Seller or Seller Parent, to be employed (A) terminate, curtail or retained otherwise modify its relationship with the Business or (B) engage in business with a competitor of the Business; or (ii) interfere in any way with the relationship between the Business and any of its customers, suppliers, licensors, licensees or any such prospective customers, suppliers, licensors or licensees that have been contacted or targeted for contact by the Company Business on or its Affiliates before the Closing Date, or to terminate his or her employment or services any other Person engaged in a business relationship with the Company or its AffiliatesBusiness; provided, that notwithstanding the foregoing, general solicitations of employment published nothing in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c)7.14 shall prohibit Seller or Seller Parent from soliciting any such existing or prospective customer, supplier, licensor or licensee solely with respect to the Excluded Business. (d) Notwithstanding anything No Party shall make any disparaging statement, either orally or in writing, regarding the other Parties, the Business, or any products or services thereof, or any Affiliates or Representatives of the Parties or the Business; provided that such prohibited statements do not include statements that are made for the purpose of protecting or enforcing their rights or interests hereunder or defending against any claim brought by either Party hereunder, and the Parties shall not be prohibited from making any truthful statements in any Action, or as otherwise required by applicable Law. Further, nothing herein shall be deemed to limit competitive speech or commercial comparisons regarding services or products of the contrary in Parties following the expiration of the Restricted Period. (e) Seller and Seller Parent, by their respective execution of this Agreement, hereby agree that this Section 57.14, with respect including the provisions relating to duration, geographical area and scope, is reasonable and necessary to protect and preserve Buyer’s legitimate business interests and the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any value of the Mexican Subsidiaries of the Company engages. The Executive acknowledges Business, and agrees that: to prevent an unfair advantage from being conferred on Seller or Seller Parent. (1f) the time and geographical scope of the restrictions If any provision of this Section 5 are reasonable; 7.14 is held to be excessively broad as to duration, geographical area, scope, activity or subject, for any reason, such provision shall be modified, by limiting and reducing it, so as to be enforceable to the extent allowed by applicable Law. (2g) the burden on the Executive Xxxxxx and Seller Parent, by their respective execution of complying with the restrictions this Agreement, hereby acknowledge that any breach of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; 7.14 may result in serious and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harminjury to Xxxxx, which canXxxxx could not be adequately compensated by money damagesmonetary damages alone, (y) if and Xxxxx’s remedy at law would not be adequate. Therefore, Seller and Seller Parent hereby acknowledge and agree that, in the Executive breaches or threatens to event of a breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive7.14, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) Buyer shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdictionseek, without posting any bond or other security and without the necessity of proof of actual damagedamages, in addition toto any other remedy at law or in equity to which Buyer may be entitled, to equitable relief against Seller or Seller Parent, including temporary restraining orders and preliminary and permanent injunctions to restrain Seller or Seller Parent from such breach and to compel compliance with the obligations of Seller and Seller Parent. (h) In the event that all or substantially all of the Excluded Business is acquired by any Person or Persons other than Buyer or its Affiliates, whether in one transaction or a series of transactions and whether by merger, stock sale, sale of assets or otherwise, in lieu of the restrictions on competition set forth in Section 7.14(a) being applicable to such Person or any of its Affiliates (other than Seller and Seller Parent), Seller and Seller Parent shall ensure that any such Person and any of its Affiliates or their respective Representatives does not directly or indirectly have access to or use any Confidential Information retained by Seller and Seller Parent concerning Buyer or the Business (including data, books or records or other information related thereto), and not in lieu ofno Acquired Assets or Confidential Information retained by Seller and Seller Parent concerning Buyer or the Business (including data, books or records or other information related thereto) is accessed or used directly or indirectly by such other remedies as may be available to the Company for such breach, including the recovery of money damages. If Person or any of its Affiliates or their respective Representatives, for the provisions purposes of this conducting any activities that would be prohibited by Section 5 are determined to be wholly 7.14(a) or partially unenforceable, the Executive hereby agrees that this Agreement Section 7.14(b) if conducted by Seller or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionSeller Parent.

Appears in 1 contract

Samples: Asset Purchase Agreement (Enzo Biochem Inc)

Restrictive Covenants. The Both during the Employment and during the Restricted Period, the Executive agrees that he or she shall will not, during without the Non-Compete Periodprior written consent of the Company (such consent not to be unreasonably withheld), whether by herself, through her employees or agents or otherwise and whether on her own behalf or on behalf of any person, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (a) engage in, have an interest in, or otherwise be employed by (whether so as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection compete with the activities of, any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination of the Executive’s employment by the Company, the provisions solicit business from or canvas any Customer or Prospective Customer in respect of this Section 5(a) shall be deemed waived with respect to the ExecutiveRestricted Products or Restricted Services; (b) solicit so as to compete with the Company, accept orders from, act for or have any Person who is orbusiness dealings with, within the prior twelve any Customer or Prospective Customer in respect of Restricted Products or Restricted Services; (12c) monthsbe employed, wasengaged or concerned, or whose Affiliate is orat all interested (except as a Minority Holder) in:- (i) the businesses of AB InBev, within Bacardi Limited, Xxxxx-Xxxxxx, Carlsberg A/S, Heineken NV, PernodRicard or SAB Xxxxxx. The Company may notify the prior twelve (12) monthsExecutive from time to time of addition to the foregoing list of companies, was a customer of such additions being businesses which are similar to and compete with any business being carried on by the Company or any Group Company; or (ii) that part of its Subsidiaries a business or persuade person which is involved in the business of researching into, developing, manufacturing, distributing, selling, supplying or attempt otherwise dealing with Restricted Products or Restricted Services, if the business or person is or seeks to persuade be in competition with the Company; (d) solicit or induce or endeavour to solicit or induce any person who, on the Termination Date, was a Restricted Employee (and with whom the Executive had dealings during the Relevant Period) to cease working for or providing services to the Company, whether or not any such Person not person would thereby commit a breach of contract; (e) employ or otherwise engage any Restricted Employee in the business of researching into, developing, manufacturing, distributing, selling, supplying or otherwise dealing with Restricted Products or Restricted Services if that business is, or seeks to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does be, in competition with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such PersonCompany; or (cf) contact, approach solicit or induce or endeavour to solicit for the purpose of offering employment or induce any Supplier to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt cease to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services deal with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or interfere in any way diminish with any relationship between a Supplier and the Company’s right to enforce any such covenant in any other jurisdiction.

Appears in 1 contract

Samples: Service Agreement (Diageo PLC)

Restrictive Covenants. The Executive agrees that he or she shall notIn consideration of the transactions contemplated by this Agreement, including the purchase of the Assets (and the goodwill associated therewith) and the Business, Sellers and the Selling Persons covenant to Buyer that, during the Non-Compete Competition Period, without the prior written consent of Buyer (which consent may be withheld in the sole and absolute discretion of Buyer), Sellers, any Affiliate of Sellers, the Selling Persons, and any Affiliate of the Selling Persons (each, a “Covenanting Person”) will not, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries): (a) engage inin any capacity, have an interest in, or otherwise be employed by (whether including as an owner, operatora shareholder, partner, member, managerinvestor, lender, principal, director, officer, employee, officer, director, consultant, advisorconsultant or agent of any other Person): (x) engage in, or representative)have any financial interest in any other Person that engages in, provide consulting the business of providing or management marketing administrative, executive administrative, finance and accounting staffing services to(a “Competing Business”) within the Chicago metropolitan area and a 000-xxxx xxxxxx xx xxx Xxxxxxx xxxxxxxxxxxx xxxx; (y) solicit or influence, or permit attempt to solicit or influence, any customer or any potential customer of the Business, Buyer or Buyer’s Affiliates, or any Person that is, or during the period preceding the Closing Date was, a purchaser of services from Sellers, Buyer or their respective Affiliates, to purchase any services from any Competing Business or from any Person other than Buyer or its Affiliates; or (z) solicit, entice, induce or hire any Person who is an employee, temporary personnel or billable staffing independent contractor of the Business, Buyer or Buyer’s Affiliates, or who becomes an employee, temporary personnel or billable staffing independent contractor of the Business, Buyer or Buyer’s Affiliates, to become employed or independently contracted by any other Person or to leave his or her name to be used in connection employment with the activities ofBusiness, Buyer or Buyer’s Affiliates or cease independently contracting for the Business, Buyer or Buyer’s Affiliates, or approach any business such employee, temporary personnel or organization, engaged in a business that is competitive with a business in which billable staffing independent contractor for such purpose or authorize or knowingly approve the Company or taking of such actions by any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation other Person. For purposes of this Section 5 solely by reason thereof; provided6.1(a), furtherthe term “Non-Competition Period” shall mean (1) the period of time beginning on the Closing Date and continuing until four years after the Closing Date with respect to Sellers, thatany Affiliate of Sellers (other than the Minority Shareholder), providing investment banking or legal services to a Competitive Business as an independent consultantthe Majority Shareholder, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive following the termination and any Affiliate 36 of the Executive’s employment by Majority Shareholder, and (2) the Company, period of time beginning on the provisions of this Section 5(a) shall be deemed waived Closing Date and continuing until two years after the Closing Date with respect to the Executive; Minority Shareholder and any Affiliate of the Minority Shareholder (b) solicit other than any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or any of its Subsidiaries or to reduce the amount of business that such customer does with the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is of a nature that is related to the business in which the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Person; or (c) contact, approach or solicit for the purpose of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained covered by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by the Company or its Affiliates or to terminate his or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards such employees, consultants or independent contractors shall not be deemed to constitute solicitation for purposes of this Section 5(c). (d) Notwithstanding anything to the contrary in this Section 5, with respect to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictionabove).

Appears in 1 contract

Samples: Asset Purchase Agreement

Restrictive Covenants. The a. In consideration of the Company entering into this Agreement with Executive agrees that he or she and hereby promising and committing itself to provide Executive with Confidential Information and/or specialized training after Executive executes this Agreement, Executive shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly: (ai) engage inat any time during or after the Employment Term, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative), provide consulting or management services to, or permit his or her name to be used in connection with the activities of, disclose any business or organization, engaged in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative shall not be deemed to be a violation of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply Confidential Information pertaining to the Executive following the termination of the Executive’s employment by the Company, the provisions of this Section 5(a) shall be deemed waived with respect to the Executive; (b) solicit any Person who is or, within the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer business of the Company or any of its Subsidiaries Affiliates or persuade the Sponsor Group or attempt any of their respective Affiliates, except when required to persuade perform his duties to the Company or one of its subsidiaries, by law or judicial process; (ii) at any such Person not to be time during the Employment Term and for a customer period of eighteen (18) months thereafter (the “Non-Compete Period”), directly or indirectly, act as a proprietor, investor, director, officer, employee, substantial stockholder, consultant, or partner in any Competing Business in Texas or any other geographic area in which the Company or its Affiliates operates or conducts business; or (iii) at any time during the Employment Term and for a period of eighteen (18) months thereafter, directly or indirectly (A) solicit customers or clients of the Company or any of its Subsidiaries or Affiliates to reduce the amount of business that such customer does terminate their relationship with the Company or any of its Subsidiaries, Affiliates or enter into otherwise solicit such customers or seek clients to enter into compete with any agreement (to the extent such agreement is business of a nature that is related to the business in which the Company or any of its Subsidiaries engageAffiliates, or (B) withsolicit or offer employment to any person who is, to or has been at any time during the twelve (12) months immediately preceding the termination of Executive’s knowledgeemployment employed by the Company or any of its Affiliates; provided that in each of (ii) and (iii) above, such restrictions shall not apply with respect to any such Person; or (c) contactmember of the Sponsor Group or any of its Affiliates that is not engaged in any business that competes, approach directly or solicit indirectly, with Holdings or any of its subsidiaries in any geographic area where they operate. Notwithstanding the foregoing, for the purpose purposes of offering employment to Section 8(a), (A) Executive may, directly or hiring or retainingindirectly own, or actually hire or retain solely as an investment, securities of any Person who is or was employed or retained by engaged in the business of the Company or its Affiliates which are publicly traded on a national or regional stock exchange or quotation system or on the 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, own 5% or more of any class of securities of such Person, and (B) the Non-Compete Period shall not be triggered by any exercise of tag-along rights under the Sale Participation Agreement entered into between Executive and Texas Energy Future Holdings Limited Partnership (the “Sale Participation Agreement”) or Drag Transaction (as an employee during defined in the immediately preceding twelve Sale Participation Agreement) that may occur after the date hereof. b. Notwithstanding clause (12a) months above, if at any time a court holds that the restrictions stated in such clause (a) are unreasonable or attempt to persuade any Person not to continue otherwise unenforceable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographic area determined to be employed reasonable under such circumstances by such court will be substituted for the stated period, scope or retained area. Because Executive’s services are unique and because Executive has had access to Confidential Information, the parties hereto agree that money damages will be an inadequate remedy for any breach of this Agreement. In the event of a breach or threatened breach of this Agreement, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive relief in order to enforce, or prevent any violations of, the provisions hereof (without the posting of a bond or other security). c. For purposes of this Section 8, the terms listed below shall be defined as follows: (i) Affiliate shall mean with respect to any Person, any entity directly or indirectly controlling, controlled by or under common control with such Person; provided, however, for purposes of this Agreement, Texas Energy Future Co-Invest, LP shall not be deemed to be an Affiliate of the Sponsor Group or any members of the Sponsor Group. (ii) Competing Business shall mean any business that directly or indirectly competes, at the relevant determination date, with one or more of the businesses of the Company, or its Affiliates in any geographic area where the Company or its Affiliates operate. (iii) Confidential Information shall mean all non-public information concerning trade secret, know-how, software, developments, inventions, processes, technology, designs, the financial data, strategic business plans or any proprietary or confidential information, documents or materials in any form or media, including any of the foregoing relating to terminate his research, operations, finances, current and proposed products and services, customers, advertising and marketing, and other non-public, proprietary, and confidential information of the Restricted Group, excluding any such non-public information that (i) is required by court or her employment administrative order to be disclosed or services with (ii) becomes generally available to the Company public other than as a result of Executive’s disclosure or its Affiliates; provided, that notwithstanding the foregoing, general solicitations failure to safeguard in violation of employment published in a journal, newspaper or other publication of general circulation and not specifically directed towards this Section 8. (iv) Person shall mean “person,” as such employees, consultants or independent contractors shall not be deemed to constitute solicitation term is used for purposes of this Section 5(c13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (or any successor thereto). (dv) Notwithstanding anything to the contrary in this Section 5Restricted Group shall mean, with respect to the country of Mexicocollectively Holdings, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in which any of the Mexican Subsidiaries of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 is not unreasonable; (3) the general public policy is not harmed by the restrictions of this Section 5; and (4) the restrictions of this Section 5 are necessary for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harmsubsidiaries, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits Sponsor Group and (z) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company (by vote of a majority of the members of the Board) seeks an injunction against the Executive, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such breach or threatens to commit any breach, the Company (by vote of a majority of the members of the Board) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of this Section 5 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictiontheir respective Affiliates.

Appears in 1 contract

Samples: Employment Agreement (Energy Future Holdings Corp /TX/)

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!