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
Sources: Severance Agreement (Kinder Morgan Holdco LLC), Severance Agreement (Kinder Morgan Holdco LLC), Severance Agreement (Kinder Morgan Holdco LLC)
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
Sources: 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
Sources: Service Agreement (Pantheon Arizona Corp.), Service Agreement (Pantheon Arizona Corp.), Service Agreement (Pantheon Arizona Corp.)
Restrictive Covenants. (a) The Executive hereby agrees that he or she the Executive shall not, at any time during the Non-Compete Noncompetition Restricted Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):
(a) engage in, have an any interest inin (including, without limitation, through the investment of capital or lending of money or property), or manage, operate or otherwise be employed by render any services to, any Person (whether on his own or in association with others, as an ownera principal, operatordirector, officer, employee, agent, representative, partner, member, manager, employee, officer, directorsecurity holder, consultant, advisor, independent contractor, owner, investor, participant or representative), provide consulting in any other capacity) that engages in (either directly or management services to, through any subsidiary or permit his or her name to be used in connection with the activities of, Affiliate thereof) any business or organizationactivity, engaged in a business that is competitive with a business within any of the states or territories within the United States or any other country, territory or state in which the Company or any of its Subsidiaries engages subsidiaries operate, (i) that creates, designs, invents, engineers, develops, sources, markets, manufactures, distributes or sells any product or provides any service that may be used as a “Competitive Business”); provided, that ownership of less than one percent (1%) of the outstanding stock of substitute for or otherwise competes 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 product 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 service of the Company or any of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of entity owned by 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 SubsidiariesCompany, 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 ii) which the Company or any of its Subsidiaries engage) Affiliates has taken active steps to engage in or acquire, but only if the Executive directly or indirectly engages in, has any interest in (including, without limitation, through the investment of capital or lending of money or property), or manages, operates or otherwise renders any services in connection with, such business or activity (whether on his own or in association with others, as a principal, director, officer, employee, agent, representative, partner, member, security holder, consultant, advisor, independent contractor, owner, investor, participant or in any other capacity). Notwithstanding the foregoing, the Executive shall be permitted to acquire a passive stock or equity interest in such a business; provided that such stock or other equity interest acquired is not more than five percent (5%) of the outstanding interest in such business.
(b) The Executive hereby agrees that the Executive shall not, at any time during the Nonsolicitation Restricted Period, directly or indirectly, either for himself or on behalf of any other Person, (i) recruit or otherwise solicit or induce any employee, customer 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 at any time during the twelve (12)-month period immediately prior to the Executive’s knowledge, any such Person; orDate of Termination or who thereafter becomes employed by the Company.
(c) contactExcept 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 6(e), approach the Executive shall, during the Term and after the Date of Termination, maintain in confidence and shall not directly or solicit indirectly, use, disseminate, disclose or publish, for the purpose Executive’s benefit or the benefit of offering any other Person, any confidential or proprietary information or trade secrets of or relating to 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 employment to or hiring or retaining(“Proprietary Information”), or actually hire deliver to any Person, any document, record, notebook, computer program or retain similar repository of or containing any Person who such Proprietary Information. The Executive’s obligation to maintain and not use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any other Person, any Proprietary Information after the Date of Termination will continue so long as such Proprietary Information is not, or was employed has not by legitimate means become, generally known and in the public domain (other than by means of the Executive’s direct or retained indirect disclosure of such Proprietary Information) and continues to be maintained as Proprietary Information by the Company or its Affiliates Company. The parties hereby stipulate and agree that as an employee during between them, the immediately preceding twelve (12) months or attempt to persuade any Person not to continue to be employed or retained by Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the Company (and any successor or its Affiliates or to terminate his or her employment or services with assignee 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(cCompany).
(d) Notwithstanding anything Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the contrary in this Section 5Company (i) all correspondence, with respect to the country of Mexicodrawings, this Section 5 will only apply (and therefore will be limited) to activities manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents that are competitive with Proprietary Information, including all physical and digital copies thereof, and (ii) all other Company property (including, without limitation, any personal computer or wireless device and related accessories, keys, credit cards and other similar items) which is in his possession, custody or control.
(e) The Executive may respond to a lawful and valid subpoena or other legal process but shall give the businesses Company the earliest possible notice thereof, and shall, as much in which any advance 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 return date as possible, make available to the Company and its Subsidiaries. counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process.
(f) The Executive further acknowledges and agrees (x) not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, partners, members, equity holders or Affiliates, either orally or in writing, at any time; provided that the Executive may confer in confidence with the Executive’s legal representatives and make truthful statements as required by law.
(g) Prior to accepting other employment or any other service relationship during the Noncompetition Restricted Period, the Executive shall provide a copy of this Section 6 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any employer or other Person with which the Executive discusses potential employment or any other service relationship.
(h) In the event the terms of this Section 6 shall be determined by any court of competent jurisdiction 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, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. Any breach or violation by the Executive of the provisions of this Section 5 will cause 6 shall toll the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions running of any time periods set forth in this Section 5 and 6 for the Company (by vote duration 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 breachviolation.
(i) As used in this Section 6, the Company (by vote of a majority of the members of the Board) term “Company” 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 include the Company for such breachand any parent, including the recovery of money damages. If any of the provisions of this Section 5 are determined to be wholly affiliated, related and/or direct 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 jurisdictionindirect subsidiary entity thereof.
Appears in 6 contracts
Sources: Employment Agreement (ProPetro Holding Corp.), Employment Agreement (ProPetro Holding Corp.), Employment Agreement (ProPetro Holding 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
Sources: Employment Agreement (Republic Services Inc), Employment Agreement (Republic Services Inc), 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 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
Sources: 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
Sources: Employment Agreement (Summit Midstream Partners, LP), Employment Agreement (Summit Midstream Partners, LP), Employment Agreement (Summit Midstream Partners, LP)
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
Sources: 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 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
Sources: Employment Agreement (Total Control Products Inc), Employment Agreement (General Electric Co), 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
Sources: 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
Sources: Employment Agreement (Republic Services, Inc.), Employment Agreement (Republic Services, Inc.), Employment Agreement (Republic Services, Inc.)
Restrictive Covenants. The (a) Executive agrees that he or she for a period of time beginning upon Executive’s termination of employment from the Company (the “Termination Date”) and continuing for a period of one (1) year, Executive shall not, during the Non-Compete Period, :
(i) directly or indirectly (indirectly, either individually or as a principal, partner, agent, employee, employer, consultant, stockholder, member, partner, joint venturer, or investor, or as a director, manager or officer of any corporation or association, or in any other than on behalf of manner or at the request of the Company or its Subsidiaries):
(a) capacity whatsoever, engage in, assist or have an any active 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 business, located anywhere 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 geographic area then served by the Company, the provisions of this Section 5(a) shall be deemed waived or by its subsidiaries or joint ventures or by KCS or its subsidiaries or joint ventures (“Affiliates”), that competes 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 engages 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 conducted by the Company or its Affiliates on the date hereof or at any time through the Termination Date.
(ii) directly or indirectly, either individually, or as an employee during the immediately preceding twelve a principal, partner, agent, employee, employer, consultant, stockholder, joint venturer, or investor, or as a director or officer of any corporation or association, (121) months divert or attempt to persuade any Person not to continue to be employed divert (by solicitation or retained by otherwise) from the Company or its Affiliates any business with any customer, prospective customer or to terminate his account of the Company or its Affiliates with which Executive had any contact or association, which was under Executive’s supervision, or the identity of which was learned by Executive as a result of his/her employment with the Company; (2) accept the business of any customer, prospective customer or services account of the Company or its Affiliates with whom Executive had any contact or association, which was under Executive’s supervision, or the identity of which was learned by Executive as a result of his/her employment with the Company, whether or not solicited by Executive; or (3) induce, solicit, or cause any employee of the Company or its Affiliates to leave the employ of the Company or its Affiliates; provided, .
(iii) except 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 these Restrictive Covenants shall not be deemed to constitute solicitation for purposes apply in the event of this Section 5(ca Change in Control as defined in Paragraph 7(d).
(db) 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 that any breach of the provisions of this Section 5 will restrictive covenants contained in Paragraph 16(a) (the “Restrictive Covenants”) would cause irreparable injury to the Company irreparable harmor KCS and that its remedy at law would be inadequate and, which cannot be adequately compensated by money damagesaccordingly, (y) if the Executive breaches or threatens consents 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 jurisdictionmay be granted, without posting bond, in any bond or other security and proceeding which may be brought to enforce the Restrictive Covenants, without the necessity of proof of actual damage. This right to an injunction shall not prohibit the Company or KCS from pursuing any other remedies available to it including, in addition but not limited to, and not in lieu ofthe recovery of damages. Executive further agrees that the Company or KCS may provide a copy of this Agreement to any prospective employer of Executive that the Company or KCS believes is a competitor.
(c) If Executive violates the Restrictive Covenants, such other remedies as may be available Executive (i) shall forfeit all right to future benefits under this Agreement; (ii) shall refund to the Company for such or KCS (as the case may be) any severance and benefits paid by the Company or KCS; (iii) shall pay reasonable attorneys’ fees and all other costs incurred by the Company or KCS as a result of Executive’s breach; and (iv) acknowledges that the Company or KCS may pursue any other remedies available to it as a result of Executive’s breach including, including but not limited to, the recovery of money damages.
7. 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 The following new Paragraph 17 is enforceable added 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 4 contracts
Sources: Employment Agreement, Employment Agreement (Kansas City Southern), Employment Agreement (Kansas City Southern)
Restrictive Covenants. The Executive Parties agree that the Company, its subsidiaries and their respective affiliates are engaged in a highly competitive industry and would suffer irreparable harm and incur substantial damage if Employee were to enter into competition with the Company and its subsidiaries and affiliates. Therefore, in order for the Company to protect its legitimate business interests, Employee covenants and agrees that he or she as follows:
a. Employee shall not, at any time during his employment with the Non-Compete PeriodCompany and for a period of twelve (12) months thereafter, anywhere in the world or any jurisdiction in which the Company and its subsidiaries and affiliates conduct material business operations (the “Restricted Territory), either directly or indirectly indirectly: (other than on behalf of i) accept employment with or at the request of the Company or its Subsidiaries):
(a) engage in, have an interest in, or otherwise be employed by render services to (whether as an agent, servant, owner, operator, partner, member, managerconsultant, employee, officerindependent contractor, representative, director, consultant, advisorofficer, or representative)stockholder) any person or entity that is a business competitor of the Company and its subsidiaries and affiliates or entity that competes with the Company and its subsidiaries and affiliates in the field of digital asset treasury (“DAT”) companies, provide consulting or management services toincluding any DAT-focused business and/or any new business line created by a DAT, or permit his or her name to be used in connection has at any time during Employee’s employment with the activities ofCompany engaged or attempted to engage in business competition with the Company and its subsidiaries and affiliates, any business or organization, engaged in a business position, capacity, or function that is competitive similar, in title or substance, whether in whole or in part, to any position, capacity, or function that Employee held with or in which Employee served the Company; or (ii) invest in any person or entity that is a business in which competitor of the Company and its subsidiaries and affiliates, or has at any of time during Employee’s employment with the Company engaged or attempted to engage in business competition with the Company and its Subsidiaries engages (a “Competitive Business”); providedsubsidiaries and affiliates, except that ownership of less than Employee may own up to one percent (1%) of the any outstanding stock class of securities of any publicly traded corporation company registered under Section 12 of the Securities Exchange Act of 1934, as amended;
b. Employee shall not, at any time during his employment with the Company and for a period of twenty-four (24) months thereafter (the “Restricted Period”) in the Restricted Territory, for any reason, on his own behalf or on behalf of any other person or entity, by or through any means including but not be deemed limited to be a violation of this Section 5 solely by reason thereof; providedsocial media: (i) solicit, furtherinvite, induce, cause, or encourage to alter or terminate his, her, or its business relationship with the Company and its subsidiaries and affiliates, any client, customer, supplier, vendor, licensee, licensor, or other person or entity 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 Executiveat any time during Employee’s employment by with the Company, had a business relationship with the provisions Company and its subsidiaries and affiliates, or any person or entity whose business the Company and its subsidiaries and affiliates was soliciting or attempting to solicit at the time of this Section 5(aEmployee’s termination, (a) shall be deemed waived for whom Employee performed services or with respect whom Employee had contact during his employment with the Company, or whose business Employee was soliciting or attempting to solicit at the Executive;
time of Employee’s termination, and (b) with whom Employee did not have a business relationship prior to his employment with the Company; (ii) solicit, entice, attempt to solicit any Person who is or, within the prior twelve (12) months, wasor entice, or whose Affiliate is oraccept business from any such client, within the prior twelve customer, supplier, vendor, licensee, licensor, person, or entity; or (12iii) months, was a customer of the Company or any of its Subsidiaries or persuade interfere or attempt to persuade interfere with any aspect of the business relationship between the Company and its subsidiaries and affiliates and 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 Subsidiariesclient, customer, supplier, vendor, licensee, licensor, person, or enter into entity; and
c. Employee shall not, at any time during the Restricted Period in the Restricted Territory, either directly or seek indirectly, on his own behalf or on behalf of any other person or entity, by or through any means including but not limited to enter into any agreement social media: (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) withsolicit, to the Executive’s knowledgeinvite, any such Person; or
(c) contactinduce, approach or solicit for the purpose of offering employment to or hiring or retainingcause, or actually hire encourage any director, officer, employee, agent, representative, consultant, 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 contractor of the Company and its Subsidiariessubsidiaries and affiliates to alter or terminate his, her, or its employment, relationship, or affiliation with the Company and its subsidiaries and affiliates; (ii) interfere or attempt to interfere with any aspect of the relationship between the Company and its subsidiaries and affiliates and any such director, officer, employee, agent, representative, consultant, or contractor; or (iii) engage, hire, or employ, or cause to be engaged, hired, or employed, in any capacity whatsoever, any such director, officer, employee, agent, representative, consultant, or contractor.
d. Employee covenants and agrees that Employee shall not make any statement, written or verbal, in any forum or media, or take any other action or engage in any conduct that disparages the Company and its subsidiaries and affiliates, their services, products, officers, directors, managers, employees, shareholders, members, investments or agents. The Executive further acknowledges Company and agrees its subsidiaries and affiliates covenant and agree that the Company and its subsidiaries and affiliates shall not make any statement, written or verbal, in any forum or media, or take any other action or engage in any conduct that disparages Employee. Nothing in this Section 4(d) shall prohibit any Person from (xA) testifying truthfully in any legal or administrative proceeding or otherwise truthfully responding to any other request for information or testimony to which such Person is legally required to respond; (B) making any truthful statement to the extent necessary to rebut any untrue public statements made by another Person; (C) making any statement or engaging in any conduct that would constitute a permitted disclosure; (D) making any truthful statement as part of or in any arbitration or court proceeding that involves such Person; or (E) making any truthful statement or expression of opinion in connection with requests from third parties for employment references or in connection with discussions involving matters of workplace concern, such as performance review, bonus determination, or investigation. Employee represents, warrants, agrees, and understands that: (i) the Executive’s breach covenants and agreements set forth in this Section 4 of the provisions of this Section 5 will cause the Company irreparable harmAgreement are reasonable in their geographic scope, which cannot be adequately compensated by money damagestemporal duration, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 and the Company type and scope of activities they restrict; (by vote of a majority of the members of the Boardii) seeks an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on agreement to employ Employee, and a portion of the merits compensation to be paid to Employee hereunder, are in consideration for such covenants and Employee’s continued compliance therewith, and constitute adequate and sufficient consideration for such covenants; (iii) Employee shall not raise any issue of, nor contest or dispute, the reasonableness of the geographic scope, temporal duration, or content of such covenants and agreements in any proceeding to enforce such covenants and agreements; (iv) the enforcement of any remedy under this Agreement will not prevent Employee from earning a livelihood, because Employee’s past work history and abilities are such that Employee can reasonably expect to find work in other areas and lines of business; (v) the covenants and agreements set forth in this Section 4 of the Agreement are essential for the Company’s and its subsidiaries and affiliates reasonable protection, are designed to protect the Company’s and its subsidiaries and affiliates legitimate business interests, and are necessary and implemented for legitimate business reasons; and (zvi) if the Executive breaches or threatens to breach the provisions of in entering into 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 has relied upon Employee’s representation that he will comply in full with the covenants and agreements set forth in this Section 4 of the members of Agreement. If Employee breaches Section 4(a), 4(b), or 4(c) above, then the Board) period during which that section remains in effect shall be entitled to temporary and permanent injunctive relief from a court extended by the length 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, time during which 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 jurisdictionbreach continues.
Appears in 3 contracts
Sources: Employment Agreement (Tharimmune, Inc.), Employment Agreement (Tharimmune, Inc.), Employment Agreement (Tharimmune, Inc.)
Restrictive Covenants. (a) The Executive hereby agrees that he or she the Executive shall not, at any time during the Non-Compete Restricted Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):
(a) engage in, have an any interest inin (including, without limitation, through the investment of capital or lending of money or property), or manage, operate or otherwise be employed by render any services to, any Person (whether on his own or in association with others, as an ownera principal, operatordirector, officer, employee, agent, representative, partner, member, manager, employee, officer, directorsecurity holder, consultant, advisor, independent contractor, owner, investor, participant or representativein any other capacity) that engages in (either directly or through any subsidiary or Affiliate thereof) the business of marketing or selling any products which directly compete with the products sold by the Company but only if the Executive directly or indirectly engages in, has any interest in (including, without limitation, through the investment of capital or lending of money or property), provide consulting or management manages, operates or otherwise renders any services toin connection with, such business (whether on his own or in association with others, as a principal, director, officer, employee, agent, representative, partner, member, security holder, consultant, advisor, independent contractor, owner, investor, participant or in any other capacity). Notwithstanding the foregoing, the Executive shall be permitted to acquire a passive stock or equity interest in such a Person; provided that such stock or other equity interest acquired is less than five percent (5%) of the outstanding interest in such Person.
(b) The Executive hereby agrees that the Executive shall not, at any time during the Restricted Period, directly or indirectly, either for himself or on behalf of any other Person, (i) recruit or otherwise solicit or induce any employee, customer or supplier of the Company to terminate its employment or arrangement with the Company, or permit his otherwise change its relationship with the Company, or her name (ii) hire, or cause to be used in connection hired, any person who both (A) was employed by the Company at any time during the 180-day period before the Date of Termination and (B) was employed by the Company at the time of recruitment, solicitation, inducement or hire, or (x) with respect to any former employee of the Company who following his termination of employment at the Company becomes employed on a full-time basis with another employer prior to any recruitment, solicitation or inducement by the Executive (and who at the time of commencement of such other employment had no intention of becoming employed by the Executive or any Person affiliated with the activities ofExecutive), at any business time during the 90-day period immediately prior to recruitment, solicitation, inducement or organizationhire thereof, engaged in a business or (y) with respect to any other former employee of the Company, at any time during the 180-day period immediately prior to recruitment, solicitation, inducement or hire thereof; provided, however, that is competitive with a business in which any advertising or solicitation not specifically directed at the Company or any of its Subsidiaries engages (a “Competitive Business”); providedemployees, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation clients or customers shall not be deemed to be constitute a violation breach of this Section 5 solely by reason thereof; provided6(b) nor shall the hiring of any person pursuant to such advertising or solicitation whose annual compensation is less than $60,000 per annum.
(c) The provisions contained in Sections 6(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 Committee.
(d) Except as the Executive reasonably and in good faith determines to be desirable in the faithful performance of the Executive’s duties hereunder or required in accordance with Section 6(f), furtherthe Executive shall, thatduring the Term and after the Date of Termination, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative maintain in confidence and shall not be deemed directly or indirectly, use, disseminate, disclose or publish, for the Executive’s benefit or the benefit of any other Person, 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 employment (“Proprietary Information”), or deliver to any Person, any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information. The Executive’s obligation to maintain and not use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any other Person, 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 individual; providedProprietary Information) and continues to be maintained as Proprietary Information by the Company. The parties hereby stipulate and agree that as between them, furtherthe Proprietary Information identified herein is important, that, if material and affects the Board determines that successful conduct of the provisions businesses of this Section 5(athe Company (and any successor or assignee of the Company).
(e) should not apply to the Executive following the Upon 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 for any of its Subsidiariesreason, or enter into or seek to enter into any agreement (the Executive will promptly deliver to the extent such agreement is of a nature Company (i) all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, and any other documents that is related to are Proprietary Information, including all physical and digital copies thereof (the business in which the “Materials”), and (ii) all other Company or any of its Subsidiaries engage) withproperty (including, to the Executive’s knowledgewithout limitation, any such Person; or
(cpersonal computer or wireless device and related accessories, keys, credit cards and other similar items) contactwhich is in his possession, approach custody 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)control.
(df) Notwithstanding anything The Executive may respond to a lawful and valid subpoena or other legal process but shall give the contrary Company prompt notice thereof, and shall use reasonable best efforts, as much 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 advance 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 return date as possible, to make available to the Company and its Subsidiaries. The counsel the documents and other information sought, and shall assist (at the Company’s expense) such counsel in resisting or otherwise responding to such process.
(g) Except as required in connection with any legal dispute between the parties or as required by applicable law or legal process, during the Term and thereafter: (i) Novanta shall instruct its then-current Board members, executive officers and authorized Novanta representatives speaking on behalf of Novanta to not willfully make (or direct anyone else to make) any Disparaging remarks, comments or statements about the Executive further acknowledges to any other person or entity; and agrees (xii) the ExecutiveExecutive shall not willfully make (or direct anyone else to make) any Disparaging remarks, comments or statements about the Company (including, without limitation, its directors, officers, agents, representatives, partners, members, equity holders or Affiliates) to any other person or entity. For purposes hereof, “Disparaging” written or oral remarks, comments or statements are those that impugn the character, honesty, integrity or morality or business acumen or abilities in connection with any aspect of the operation of business of the individual or entity being disparaged. Notwithstanding the foregoing, the Executive may make truthful statements about any Company employee to any member of the Board or his legal representatives and each Board member may make truthful statements about the Executive to other Board members or the Company’s legal representatives.
(h) Prior to accepting other employment or any other service relationship during the Restricted Period, the Executive shall provide a copy of this Section 6 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any employer or other Person with which the Executive obtains future employment or any other service relationship prior to the commencement of such future employment or other service relationship.
(i) In the event the terms of this Section 6 shall be determined by any court of competent jurisdiction 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, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. Any breach or violation by the Executive of the provisions of this Section 5 will cause 6 shall toll the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions running of any time periods set forth in this Section 5 and 6 for the Company (by vote duration 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 breachviolation.
(j) As used in this Section 6, the Company (by vote of a majority of the members of the Board) term “Company” shall be entitled to temporary include Novanta and permanent injunctive relief from a court of competent jurisdiction, without posting any bond direct 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 jurisdictionindirect subsidiary entity thereof.
Appears in 3 contracts
Sources: Employment Agreement (Novanta Inc), Employment Agreement (Novanta Inc), Employment Agreement (Novanta Inc)
Restrictive Covenants. The 5.1 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 any 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.
5.2 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 5.2 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 5.2; (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.
5.3 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.
5.4 The Executive understands that in the event of a violation of any provision of Section 5, 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 5.4 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 5 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.
5.5 The Executive acknowledges that the provisions of Section 5 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 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 such Change 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 jurisdictionControl.
Appears in 3 contracts
Sources: Change in Control Agreement (Armstrong World Industries Inc), Change in Control Agreement (Armstrong World Industries Inc), Change in Control Agreement (Armstrong World Industries Inc)
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
Sources: 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
Sources: 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 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
Sources: Annual Report, Employment Agreement (Carriage Services Inc), Employment Agreement (Carriage Services Inc)
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
Sources: Employment Agreement (World Gaming PLC), Employment Agreement (Starnet Communications International Inc/ Fa), Employment Agreement (World Gaming PLC)
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
Sources: Performance Based Restricted Stock Unit Grant Agreement (International Seaways, Inc.), Performance Based Restricted Stock Unit Grant Agreement (International Seaways, 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
Sources: Employment Agreement (Timco Aviation Services Inc), Employment Agreement (Timco Aviation Services 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
Sources: 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
Sources: Employment Agreement (Penseco Financial Services Corp), Employment Agreement (Penseco Financial Services 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 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
Sources: Performance Award Agreement (Duke Energy CORP), Restricted Stock Unit Award Agreement (Duke Energy CORP)
Restrictive Covenants. The Executive (a) In the event that ▇▇▇▇▇▇’ employment with the Company is terminated for any reason, ▇▇▇▇▇▇ 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 ▇▇▇▇▇▇ 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) ▇▇▇▇▇▇ 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 ▇▇▇▇▇▇’ 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
Sources: Employment Agreement (Cadmus Communications Corp/New), Employment Agreement (Cadmus Communications Corp/New)
Restrictive Covenants. The Executive agrees 14.1 For the purpose of assuring to the Investors and the Company the value of the Business and any other business which may be conducted by a Restricted Company from time to time and the full benefit of the goodwill of the business of each Restricted Company and protecting Confidential Information and workforce stability, each of the Founders hereby severally undertakes and covenants with the Investors and the Company that (save for any interest in the shares or other securities of a company traded on a securities market so long as such interest does not extend to more than 5 per cent of the issued share capital of the company or the class of securities concerned or, save with the written consent of an Investor Majority, the Insight Director and the ▇▇▇▇ Capital Director) he or she shall not:
(a) while he is a director or employee of, during the Non-Compete Periodor a consultant to, any Restricted Company carry on or be concerned, engaged or interested directly or indirectly (other than in any capacity whatsoever) hi any trade or business competing with the trade or business of any Restricted Company as carried on behalf of or at the request of the Company time or, in relation to any trade 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 thereofRestricted Company at any time during the previous two years; 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 any Person who is or, during the period of 18 months commencing on the Relevant Date:
(i) within the prior twelve Restricted Area carry on or be concerned, engaged or interested directly or indirectly in any capacity whatsoever in any business or entity competing with the business carried on by any Restricted Company; or
(12ii) months, was, either on his own behalf or whose Affiliate is in any other capacity whatsoever directly or indirectly do or say anything which may lead to any person (including any agent supplier or distributor) ceasing to do business with any Restricted Company on substantially the same terms as previously (or at all) or reducing the business which they do with any Restricted Company; or,
(iii) either on his own behalf or on behalf of any business or entity competing with any Restricted Company within the prior twelve (12) monthsRestricted Area directly or indirectly endeavour to entice away from any Restricted Company or solicit business in respect of goods or services which any Restricted Company offers or plans to offer at the Termination Date from any person, firm or company who was a client or customer or Prospective Customer of any Restricted Company during the Period and with whom (in each case) who shall during the Period have had direct dealings on behalf of a Restricted Company or about which he has received Confidential Information; or
(iv) either on his own behalf or on behalf of any business or entity competing with any Restricted Company within the Restricted Area directly or indirectly have business dealings in respect of its Subsidiaries goods or persuade services which any Restricted Company offers or attempt plans to persuade offer at the Termination Date to any such Person not to be person, firm or company who was a client or customer or Prospective Customer of any Restricted Company during the Period and with whom (in each case) he shall during die Period have had direct dealings on behalf of any Restricted Company or about which he has received Confidential Information;
(v) either on his own behalf or in any of its Subsidiaries other capacity whatsoever directly or to reduce the amount of business that such customer does with the Company indirectly employ, engage or any of its Subsidiariesinduce, or enter into or seek to enter into induce, to leave the service of any agreement (to Restricted Company any Senior Employee with whom he shall have had dealings during the extent Period or about which he has Confidential Information whether or not such agreement is person would commit any breach of a nature that is related to his contract of employment by reason of so leaving the business in which the service of die Restricted Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personotherwise; or
(c) contactat any time after the Termination Date represent himself as being in any way currently connected with or interested in the business of any Restricted Company (other than as a shareholder, approach director, employee or solicit for consultant if that be 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(ccase).
(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 14.2 Each of the restrictions contained in each paragraph of this Section 5 clause 14.1 is separate and distinct and is to be construed separately from the other such restrictions. Each of the Founders hereby acknowledges that be considers such restrictions to be reasonable both individually and in the aggregate and that the duration extent and application of each of such restrictions are reasonable; (2) the burden on the Executive of complying with the restrictions of this Section 5 no greater than 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 goodwill of the provisions businesses of this Section 5 will cause the Company irreparable harmeach Restricted Company, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions of this Section 5 Confidential Information and the Company (by vote of a majority stability of the members workforce and that the consideration paid by the Investors for the New Shares applied for in this Agreement takes into account and adequately compensates him for any restriction or restraint imposed thereby. However, if any such restriction shall be found to be void or unenforceable but would be valid or enforceable if some part or parts thereof were deleted or the period or area of application reduced, each 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 Founders hereby 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) restriction 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, apply with such other remedies 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.
Appears in 2 contracts
Sources: Subscription and Shareholders’ Agreement, Subscription and Shareholders’ Agreement (Mimecast LTD)
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
Sources: Limited Liability Company Agreement (STR Holdings (New) LLC), Limited Liability Company Agreement (STR Holdings 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
Sources: Employment Agreement (Healthier Choices Management Corp.), Employment Agreement (Vapor 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
Sources: Limited Liability Company Agreement (STR Holdings (New) LLC), Limited Liability Company Agreement (STR Holdings, 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
Sources: Employment Agreement (Carriage Services Inc), Employment Agreement (Carriage Services Inc)
Restrictive Covenants. The Executive (i) Each Stockholder agrees that he or she shall that, except as provided in Section 4(d), for a period of three years from the date of this Agreement, such Stockholder will not, during the Non-Compete Periodand will cause its Affiliates not to, directly or indirectly (other than on behalf of or at indirectly, without the request consent of the Company or its Subsidiaries):Company:
(a1) engage or assist any Person in engaging in, have an interest inindividually, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, employee, agent, consultant, advisorshareholder, owner, partner, manager, member, consultant, principal, or representative)in any other capacity, provide consulting or management render any services to, or permit his or her name to be used in connection with the activities of, any business or organization, engaged operating in a business that is competitive with a business in which any country where the Company or any of its Subsidiaries engages (or any of its Joint Ventures currently does business that competes with any business in which the Company is engaged to in a “Competitive Business”)material way in that country; provided, however, that ownership the ownership, beneficial or otherwise, by any Stockholder of less not more than one percent (1%) of the outstanding stock % of any publicly traded corporation class of equity securities of any enterprise that engages in a competing business, if such equity securities are listed on a recognized securities exchange, shall not be deemed to be a violation breach of this Section 5 solely by reason thereof4(c)(i); providedprovided further that notwithstanding anything in this Agreement to the contrary, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative this Section 4(c)(i) shall not be deemed restrict the ability of any Stockholder or its Affiliates to be a violation director, officer or employee of, or have any other relationship with, or to own equity securities, of Lennar (as defined below); or
(2) in any manner solicit, induce or attempt to induce, or assist others to solicit, induce or attempt to induce, any customer, supplier, contractor or client associated with the Company or any of its Subsidiaries or any of its Joint Ventures at such time, or, in the case of a customer who purchased goods or services from the Company in the prior year, to terminate or materially and adversely alter its, his or her association with the Company or any of its Subsidiaries or any of its Joint Ventures or in any other manner interfere with any agreement or contract between the Company or any of its Subsidiaries or any of its Joint Ventures and any such Person; or
(ii) Each Stockholder agrees that, except as provided in Section 4(d), for a period of eighteen months from the date of this Section 5 solely by reason thereof so long as providing Agreement, such services is Stockholder will not, and will cause its Affiliates not to, directly or indirectly, without the primary duties or business activities consent 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, wassolicit, or whose Affiliate is orattempt to solicit, within the prior twelve (12) monthsinterfere with, was a customer or endeavor to cause any employee of the Company or any of its Subsidiaries or persuade any of its Joint Ventures to leave his or her employment or induce or attempt to persuade induce any such Person not to be a customer employee 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 Joint Ventures 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 breach his or her employment or services consulting agreement with the Company Company, provided that nothing will prevent any Stockholder, or its Affiliates; providedany entity of which a Stockholder is an equity owner, that notwithstanding a director or an employee, or with which the foregoingStockholder has any other type of relationship, general solicitations of employment published in a journalfrom advertising to fill job vacancies, newspaper or other publication of general circulation and provided the advertisements are 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 primarily at employees 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
Sources: Voting Agreement (Mfa Limited Partnership), Voting Agreement (LNR Property Corp)
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
Sources: Employment Agreement (Shift4 Payments, Inc.), Employment Agreement (Shift4 Payments, 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 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
Sources: Separation Agreement (Factory Card Outlet Corp), Separation Agreement (Factory Card Outlet Corp)
Restrictive Covenants. (a) The Executive hereby agrees that he or she the Executive shall not, at any time during the Non-Compete Restricted Period, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):
(a) engage in, have an any interest inin (including, without limitation, through the investment of capital or lending of money or property), or manage, operate or otherwise be employed by render any services to, any Person (whether on his own or in association with others, as an ownera principal, operatordirector, officer, employee, agent, representative, partner, member, manager, employee, officer, directorsecurity holder, consultant, advisor, independent contractor, owner, investor, participant or representativein any other capacity) that engages in (either directly or through any subsidiary or Affiliate thereof) the business of marketing or selling any products which directly compete with the products sold by the Company but only if the Executive directly or indirectly engages in, has any interest in (including, without limitation, through the investment of capital or lending of money or property), provide consulting or management manages, operates or otherwise renders any services toin connection with, such business (whether on his own or in association with others, as a principal, director, officer, employee, agent, representative, partner, member, security holder, consultant, advisor, independent contractor, owner, investor, participant or in any other capacity). Notwithstanding the foregoing, the Executive shall be permitted to acquire a passive stock or equity interest in such a Person; provided that such stock or other equity interest acquired is less than five percent (5%) of the outstanding interest in such Person.
(b) The Executive hereby agrees that the Executive shall not, at any time during the Restricted Period, directly or indirectly, either for himself or on behalf of any other Person, (i) recruit or otherwise solicit or induce any employee, customer or supplier of the Company to terminate its employment or arrangement with the Company, or permit his otherwise change its relationship with the Company, or her name (ii) hire, or cause to be used in connection hired, any person who both (A) was employed by the Company at any time during the 180-day period before the Date of Termination and (B) was employed by the Company at the time of recruitment, solicitation, inducement or hire, or (x) with respect to any former employee of the Company who following his termination of employment at the Company becomes employed on a full-time basis with another employer prior to any recruitment, solicitation or inducement by the Executive (and who at the time of commencement of such other employment had no intention of becoming employed by the Executive or any Person affiliated with the activities ofExecutive), at any business time during the 90-day period immediately prior to recruitment, solicitation, inducement or organizationhire thereof, engaged in a business or (y) with respect to any other former employee of the Company, at any time during the 180-day period immediately prior to recruitment, solicitation, inducement or hire thereof; provided, however, that is competitive with a business in which any advertising or solicitation not specifically directed at the Company or any of its Subsidiaries engages (a “Competitive Business”); providedemployees, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation clients or customers shall not be deemed to be constitute a violation breach of this Section 5 solely by reason thereof; provided6(b) nor shall the hiring of any person pursuant to such advertising or solicitation whose annual compensation is less than $60,000 per annum.
(c) The provisions contained in Sections 6(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 Committee.
(d) Except as the Executive reasonably and in good faith determines to be desirable in the faithful performance of the Executive’s duties hereunder or required in accordance with Section 6(f), furtherthe Executive shall, thatduring the Term and after the Date of Termination, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative maintain in confidence and shall not be deemed directly or indirectly, use, disseminate, disclose or publish, for the Executive’s benefit or the benefit of any other Person, 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 employment (“Proprietary Information”), or deliver to any Person, any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information. The Executive’s obligation to maintain and not use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any other Person, 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 individual; providedProprietary Information) and continues to be maintained as Proprietary Information by the Company. The parties hereby stipulate and agree that as between them, furtherthe Proprietary Information identified herein is important, that, if material and affects the Board determines that successful conduct of the provisions businesses of this Section 5(athe Company (and any successor or assignee of the Company).
(e) should not apply to the Executive following the Upon 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 for any of its Subsidiariesreason, or enter into or seek to enter into any agreement (the Executive will promptly deliver to the extent such agreement is of a nature Company (i) all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, and any other documents that is related to are Proprietary Information, including all physical and digital copies thereof (the business in which the “Materials”), and (ii) all other Company or any of its Subsidiaries engage) withproperty (including, to the Executive’s knowledgewithout limitation, any such Person; or
(cpersonal computer or wireless device and related accessories, keys, credit cards and other similar items) contactwhich is in his possession, approach custody 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)control.
(df) Notwithstanding anything The Executive may respond to a lawful and valid subpoena or other legal process but shall give the contrary Company prompt notice thereof, and shall use reasonable best efforts, as much 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 advance 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 return date as possible, to make available to the Company and its Subsidiaries. The Executive further acknowledges counsel the documents and agrees other information sought, and shall assist (xat the Company’s expense) such counsel in resisting or otherwise responding to such process.
(g) Except as required in connection with any legal dispute between the parties or as required by applicable law or legal process, during the Term and thereafter: (i) the ExecutiveCompany shall instruct its then-current Board members, executive officers and authorized Company representatives speaking on behalf of the Company to not willfully make (or direct anyone else to make) any Disparaging remarks, comments or statements about the Executive to any other person or entity; and (ii) the Executive shall not willfully make (or direct anyone else to make) any Disparaging remarks, comments or statements about the Company (including, without limitation, its directors, officers, agents, representatives, partners, members, equity holders or Affiliates) to any other person or entity. For purposes hereof, “Disparaging” written or oral remarks, comments or statements are those that impugn the character, honesty, integrity or morality or business acumen or abilities in connection with any aspect of the operation of business of the individual or entity being disparaged. Notwithstanding the foregoing, the Executive may make truthful statements about any Company employee to any member of the Board or his legal representatives and each Board member may make truthful statements about the Executive to other Board members or the Company’s legal representatives.
(h) Prior to accepting other employment or any other service relationship during the Restricted Period, the Executive shall provide a copy of this Section 6 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any employer or other Person with which the Executive obtains future employment or any other service relationship prior to the commencement of such future employment or other service relationship.
(i) In the event the terms of this Section 6 shall be determined by any court of competent jurisdiction 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, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. Any breach or violation by the Executive of the provisions of this Section 5 will cause 6 shall toll the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if the Executive breaches or threatens to breach the provisions running of any time periods set forth in this Section 5 and 6 for the Company (by vote duration 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 breachviolation.
(j) As used in this Section 6, the Company (by vote of a majority of the members of the Board) term “Company” 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 include the Company for such breach, including the recovery of money damages. If and any of the provisions of this Section 5 are determined to be wholly direct 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 jurisdictionindirect subsidiary entity thereof.
Appears in 2 contracts
Sources: Employment Agreement (Novanta Inc), Employment Agreement (Gsi Group 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
Sources: Equity Purchase Agreement, Equity Purchase Agreement (Gsi Group 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
Sources: Employment Agreement (Timco Aviation Services Inc), Employment Agreement (Timco Aviation Services 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
Sources: Annual Report, Employment Agreement (Carriage Services Inc)
Restrictive Covenants. The Executive agrees that he or she For a period of five (5) years following the Closing Date, Seller shall not, during the Non-Compete Periodnor shall he permit any Person (alone or together with others) controlling, controlled by, Affiliated with or related to Seller to, directly or indirectly (including through ownership, management, operation, or control of any other than on behalf Person, or participation in the ownership, management, operation or control of any other Person, or at the request of the Company by being connected with or its Subsidiarieshaving any interest in, as a stockholder, agent, consultant or partner, any other Person):
(a) engage in, have an interest inmake statements or representations, or otherwise be employed communicate, directly or indirectly, in writing, orally, or otherwise, to any vendors, payors, referring physicians or any other third parties, or take any action which may, directly or indirectly, disparage any Group Company, their respective Affiliates or any of such Person’s officers, directors, employees, advisors, businesses, or reputations. Notwithstanding the foregoing, nothing in this Agreement shall preclude Seller from making truthful statements or disclosures that are required by applicable law, regulation or legal process;
(b) engage in the ownership, operation, control, or management of radiation oncology facilities, or otherwise engage in the provision of radiation oncology services (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, a separate business or representative), provide consulting or management services to, or permit his or her name to be used in connection conjunction with the activities of, any business or organization, engaged practice) (a “Competing Business”) anywhere in a business Latin America or the Caribbean or any other jurisdiction in the world that is competitive with a business in which the Company or any of its Subsidiaries engages Affiliates is operating or planning to operate (a the “Competitive BusinessService Area”).
(c) have any interest, whether as owner, stockholder, member, partner, director, officer, consultant or otherwise, in any Competing Business in the Service Area; provided, however, that ownership the foregoing restriction shall not prevent Seller from (x) owning stock in any Competing Business listed on a national securities exchange or traded in the over-the-counter market provided that Seller does not own more than an aggregate 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 Personentity; or
(cd) contact, approach directly or indirectly employ or retain or attempt to employ or retain or knowingly arrange or solicit for the purpose of offering employment to have any other Person employ or hiring retain, any employee, consultant or retaining, or actually hire or retain any Person who is or was heretofore has been employed or retained by Group Company in connection with any aspect of the Company or its Affiliates as an employee Business during the immediately preceding twelve eighteen (1218) 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 month period prior 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 Closing Date 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 jurisdictionanytime thereafter.
Appears in 2 contracts
Sources: Membership Interest Purchase Agreement (Radiation Therapy Services Holdings, Inc.), Membership Interest Purchase Agreement (Radiation Therapy Services Holdings, Inc.)
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
Sources: Termination Agreement (Compu Dawn Inc), Termination Agreement (Compu Dawn 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 ▇▇▇▇, 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 ▇▇▇▇, 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
Sources: Share Purchase Agreement, Share Purchase Agreement (Travelport LTD)
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
Sources: Employment Agreement (Think Partnership Inc), Employment Agreement (Think Partnership 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 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 During the Executive’s employment with the activities ofCompany and, if the Executive receives severance benefits under Sections 6 or 7 of this Agreement, for a period of two (2) years thereafter:
(i) the Executive shall not directly for himself or any third party, become engaged in 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 within Cambria county or any of the counties contiguous with Cambria county as well as Centre, Allegheny and ▇▇▇▇▇▇▇ counties; provided, however, that ownership of less than one percent (1%) this provision shall not restrict the Executive from owning or investing in a publicly traded institution, so long as his aggregate holdings in any such institution do not exceed 5% of the outstanding capital stock of any publicly traded corporation such institution; and
(ii) the Executive 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 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
(iii) the Executive shall not, directly for himself 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.
(b) withThe 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 plan or other material data. The provisions of this Section 9(b) shall not apply to (i) information that is public knowledge other than as a result of disclosure by the Executive in breach of this Section 9(b); (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.
(c) 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 the business or employment practices of the Company. The Company agrees that it will not, in any fashion, form or manner, either directly or indirectly, disparage or criticize the Executive or otherwise speak of the Executive in any negative or unflattering way to anyone with regard to any matters relating to the Executive’s employment with the Company. This Section shall not operate as an employee during the immediately preceding twelve a bar to (12i) months or attempt to persuade any Person not to continue statements reasonably necessary to be employed made in any judicial, administrative or retained by 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 its Affiliates or matters related 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 administration of this Section 5(c)Agreement.
(d) Notwithstanding anything The Executive understands that in the event of a material violation of any provision of Section 9 as determined in good faith by the Board, the Company shall have the right to seek injunctive relief, in addition to any other existing rights provided in this Agreement or by operation of law, without the requirement of posting bond. The Executive understands that the Company may suspend future payments of the severance payments and benefits provided under this Agreement; provided, however, that the Company shall provide the Executive with written notice of such suspension at least fifteen (15) days prior to the contrary date of such suspension. The remedies provided in this Section 5, with respect 9(d) shall be in addition to the country of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses any legal or equitable remedies existing at law or provided for 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 other agreement between 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 or any of its affiliates, and shall not be construed as a majority of the members of the Board) seeks limitation upon, or as an injunction against the Executivealternative or in lieu of, 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 any such remedies. If any 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) 9 shall be entitled to temporary and permanent injunctive relief from 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.
(e) The Executive acknowledges that the provisions of Section 9 shall extend to any bond offices or other security and without the necessity facilities of proof any business that becomes an affiliate of actual damage, in addition to, and not in lieu of, such other remedies as may be available or 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 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 such Change 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 jurisdictionControl.
Appears in 1 contract
Sources: Employment Agreement (Ameriserv Financial Inc /Pa/)
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 six months 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 AVS or its affiliates (AVS or its affiliates collectively (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-Compete 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 six months following the termination of the Employment Period Employee's monthly portion of the Salary, unless Employee was terminated for "cause," in which case this restrictive covenant shall apply notwithstanding the payment of severance;
(b) for a period of six months 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
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
Sources: Employment Agreement (Catalyst Pharmaceutical Partners, 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 Section 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 Executive11, 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 1 contract
Sources: Employment Agreement (Albany International Corp /De/)
Restrictive Covenants. The Executive (a) Participant covenants and agrees that he or she shall not, at all times while employed by any member of the BGCP Group, whether prior to, on or after the Determination Date, but in any event through the Determination Date and for a period of seven (7) years following the later of the Determination Date or the termination of Participant’s employment with the BGCP Group for any reason, which 7-year period, for the avoidance of doubt, may commence during or after the Non-Compete Exchange Restriction Period, (all such periods, collectively, the “Restricted Period”), directly or indirectly indirectly, alone or by action in concert with others (other than on behalf of including with or at the request of the Company or its Subsidiariesthrough any Representative):
(ai) solicit, induce, or influence, or attempt to solicit, induce or influence, any partner, employee or consultant of BGCP or any of its Affiliates, or any member of the Cantor Group (as defined herein) to terminate their employment or other business arrangements with BGCP or any of its Affiliates or any member of the Cantor Group, or to engage in any Competing Business or hire, employ, engage (including as a consultant or partner) or otherwise enter into a Competing Business with any such Person;
(ii) solicit any of the customers of BGCP or any of its Affiliates, or any member of the Cantor Group (or any of their employees), induce such customers or their employees to reduce their volume of business with, terminate their relationship with or otherwise adversely affect their relationship with, BGCP or any of its Affiliates or any member of the Cantor Group;
(iii) do business (if such business would constitute a Competing Business) with any person who was a customer of BGCP or any of its Affiliates or any member of the Cantor Group during the twelve (12) month period prior to the applicable date during the Restricted Period on which a determination of whether any such activity constitutes a Competing Business is being made for purposes of this Agreement;
(iv) directly or indirectly engage in, have an interest inrepresent in any way, or otherwise be employed by (connected with, any Competing Business, competing with the business of BGCP or any of its Affiliates or any member of the Cantor Group, whether such engagement shall be as an owner, operator, partner, member, manager, employee, officer, director, owner, employee, partner, consultant, advisorAffiliate, investor, creditor or other participant in any Competing Business;
(v) assist others in engaging in any Competing Business in the manner described in the foregoing clause (iv);
(vi) take any action that results directly or indirectly in revenues or other benefit for Participant or any third party that is or could be considered to be engaged in any activity of the nature set forth in clauses (ii) through (v) above;
(vii) make or participate in the making of (including through any of Participant’s Representatives) any comments to the media (print, broadcast, electronic or otherwise) that are disparaging regarding (A) BGCP, any member of the Cantor Group or any of their Affiliates, or representative)(B) the senior executive officers of BGCP, provide consulting any member of the Cantor Group or management services toany of their Affiliates, or permit his are otherwise contrary to the interests of BGCP, any member of the Cantor Group or her name any of their Affiliates, as determined by the General Partner in its sole and absolute discretion;
(viii) breach Participant’s duty of loyalty to be used in connection the Partnership (as defined below);
(ix) take advantage of, or provide another person with the activities opportunity to take advantage of, a “corporate opportunity” (as such term would apply to the Partnership if it were a corporation) including opportunities related to intellectual property, which for this purpose shall require granting BGC Partners, LLC (the “General Partner”) a right of first refusal for the General Partner to acquire any business assets, stock or organization, engaged other ownership interest in a business being sold by Participant or any Affiliate of Participant, if an investment in such business would constitute a “corporate opportunity” (as such term would apply to the Partnership if it were a corporation), that is competitive with a business has not been presented to and rejected by the General Partner or that the General Partner rejects but reserves for possible further action by the General Partner in which writing, unless otherwise consented to by the Company General Partner in writing in its sole and absolute discretion; or
(x) otherwise take any action to harm, that ▇▇▇▇▇, or that reasonably could be expected to harm BGCP or any of its Subsidiaries engages Affiliates, or any member of the Cantor Group, including, without limitation, any breach of the provisions of Section 4(c) below.
(a “Competitive Business”b) Notwithstanding the foregoing, nothing in this Section 4 shall prohibit Participant from acquiring or owning, in accordance with BGCP’s policies and procedures regarding personal securities transactions (for so long as Participant is an employee of BGCP or one of its Affiliates); provided, that ownership of less than one percent (1%) of the outstanding stock securities of any publicly class of any corporation that are listed on a national securities exchange or traded corporation shall not be deemed to be a violation in the over-the-counter market. The determination of this whether Participant breaches the Covenants set forth in Section 5 solely by reason thereof; provided, further, that, providing investment banking 4(a) 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(a4(c) 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 made 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 good faith 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 Chairman 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)BGCP.
(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
Sources: Non Competition and De Bonus Award Agreement (GFI Group Inc.)
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
Sources: Employment Agreement (Marketing Services Group 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
Sources: Employment Agreement (Catalyst Pharmaceutical Partners, 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
Sources: 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
Sources: Agreement and Plan of Merger (Medvest Holdings Corp)
Restrictive Covenants. The Executive agrees 20.1 Each of the Founders and the Group Companies hereof acknowledge that the Preference Shareholders agree to invest in the Company and become a Preference Shareholders on the basis of continued and exclusive services of and full devotion and commitment by the Founders to the Group Companies, and agree that the Preference Shareholders should have reasonable assurance of such basis of investment. Each of the Group Companies and the Founders (with the exclusion of Jiang Yuan who is not a full-time employee of the Company) hereof jointly and severally undertakes to the Preference Shareholders that neither he nor any of his Associates, his nominees, trustees or she shall not, during the Non-Compete Period, like will 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 during the Relevant Period and for a period of two (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, or representative2) years after the Relevant Period (collectively “Restriction Period”), provide consulting participate, assist, advise, consult, 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, alone or in a concert with others, which is in 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 officer of any Group Company;
(d) at any time disclose to any person, or retained by use for any purpose (except for the ordinary business of the Group Companies), any information concerning the business, accounts, finance, transactions or Intellectual Property rights of any Group Company or its Affiliates any trade secrets or confidential information of or relating to any of the Group Companies.
(e) at any time to sell, transfer, pledge, mortgage, charge or otherwise Encumber or Dispose of any of their Shares or interest in the Company, nor shall they grant an option over their Shares or enter into any agreement in respect of the votes attached to the Shares before the completion of a Qualified IPO, unless prior written agreement has been obtained from the Majority A Shareholders, the Majority A-1 Shareholders and the Majority B Shareholders.
20.2 Each undertaking in paragraphs (a), (b), (c), (d) and (e) of Section 20.1 shall be treated as an employee during independent of the immediately preceding twelve (12) months or attempt to persuade other undertakings so that, if any Person not to continue of them is held to be employed invalid or retained by unenforceable for any reason, the Company or its Affiliates or remaining undertakings shall be valid to terminate his or her employment or services with the Company or its Affiliates; providedextent that they are not affected.
20.3 Each of the Founders and the Group Companies hereby expressly acknowledges and declares that he has duly considered the undertakings set out in Section 20.1 and considers that they are reasonable in the circumstances, and warrants and undertakes to the Preference Shareholders 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 he shall not be deemed to constitute solicitation for challenge or query the validity and enforceability of these undertakings.
20.4 For the purposes of this Section 5(c).
20, “Relevant Period” means, in relation to a Founder and/or his Associates, nominees, trustees or the like, the period during which he or his Associates, nominees, trustees or the like is a shareholder, director, employee and/or has any direct or indirect interest (dlegal or beneficial) Notwithstanding anything to in the contrary in this Section 5, with respect to the country capital 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.
20.5 No transfer, sale, pledge, mortgage, charge, Disposal of or Encumbrance of any Share or interest in the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope of the restrictions of or Group Companies by any Ordinary Shareholder or any Domestic Shareholder shall take place except in accordance with 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 Agreement 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 jurisdictionShare Restriction Agreement.
Appears in 1 contract
Sources: Shareholders Agreement (58.com 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 1 contract
Restrictive Covenants. The Executive reaffirms and agrees that he or he/she shall notremains bound by the provisions of Sections 11, during 12 and 13 of the Employment Agreement. As a result, and given Executive’s lengthy employment with, and access to RYFL’s and Royal Bank’s Confidential Information and/or customers and clients, and the payment of the Amount, Executive agrees for a period of one (1) year following the Effective Time (the “Non-Compete Period”), the Executive will not directly or indirectly indirectly, for the Executive’s own account, or as an agent, employee, director, owner, partner, or consultant of any corporation, firm, partnership, joint venture, syndicate, sole proprietorship or other entity which has a place of business (other than on behalf of whether as a principal, division, subsidiary, affiliate, related entity, or at otherwise) within the request of the Company or its Subsidiaries):Market Area:
(a) engage inWithout the advance written consent of Peoples Bank, have an interest inengage, directly or otherwise be employed by (whether as an ownerindirectly, operator, partner, member, manager, employee, officer, director, consultant, advisor, in any business that provides banking products or representative), provide consulting services or management services to, or permit his or her name to be used that competes in connection any way with the activities ofRYFL, any business Royal Bank or organization, engaged in a business that is competitive with a business in which the Company Peoples Bank 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 subsidiaries 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 Executiveaffiliates;
(b) solicit any Person who is or, within the prior twelve (12) months, wasSolicit or induce, or whose Affiliate is or, within the prior twelve (12) months, was a attempt to solicit or induce any client or customer of the Company RYFL, Royal Bank or Peoples Bank or any of its Subsidiaries or persuade their subsidiaries or attempt affiliates, with whom Executive had contact or about whom Executive had access to persuade any such Person Confidential Information, not to be a customer of the Company do business with RYFL, Royal Bank or Peoples Bank or any of its Subsidiaries or their subsidiaries or affiliates; and
(c) Solicit or induce, or attempt to reduce the amount solicit or induce any employee or agent of business that such customer does with the Company RYFL, Royal Bank or Peoples Bank or any of its Subsidiariesor their subsidiaries or affiliates, with whom Executive had contact or enter into or seek about whom Executive had access 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) withConfidential Information, 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 relationship with RYFL, Royal Bank or services with the Company Peoples Bank or any of 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 their subsidiaries or independent contractors shall not be deemed to constitute solicitation for affiliates. For purposes of this Section 5(c).
Section, the term “Market Area” shall be an area encompassed within a twenty (d20) Notwithstanding anything mile radius surrounding any location of RYFL or Royal Bank, or any of their subsidiaries, that was in existence immediately prior 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 jurisdictionEffective Time.
Appears in 1 contract
Sources: Merger Agreement (Finward Bancorp)
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 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 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;
6.2. for any reason, (bi) solicit 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 of its Subsidiaries affiliates to patronize any business directly or persuade indirectly in competition with the businesses conducted by the Company or attempt to persuade any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its 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 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
Sources: Employment Agreement (Catalyst Pharmaceutical Partners, Inc.)
Restrictive Covenants. The Executive a. By his designation as Company's designated employee and Company's consulting engagement with ▇▇▇▇▇▇, Employee will acquire additional and intimate knowledge about the customers, financial data, price and business negotiations and business techniques of ▇▇▇▇▇▇, as they may now exist or as they may be developed in the future. Employee acknowledges and agrees that he or she Company, in its designation of Employee as its designated employee, will allow Employee to perform services for firms, corporations and other associations and business enterprises which Employee may solicit as clients and customers of ▇▇▇▇▇▇ ("customers"), and in so doing, has and will utilize ▇▇▇▇▇▇'▇ ideas, techniques and expertise in establishing an even greater rapport with such customers. In order to avoid the inadvertent disclosure of ▇▇▇▇▇▇'▇ confidential matters, and as consideration for Company's engagement by ▇▇▇▇▇▇ and Company's designation of Employee as its designated employee hereunder, Employee hereby covenants and agrees that during Employee's employment hereunder, during Company's engagement by ▇▇▇▇▇▇, and for two (2) years from and after the effective date of the termination of Company's engagement with ▇▇▇▇▇▇, Employee and his agents shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of indirectly, either by themselves or at the request of the Company or its Subsidiaries):
(a) engage in, have an interest inthrough others, or otherwise be employed by (whether as an owner, operator, a partner, memberemployee, manager, employeeagent, officer, director, consultantmember, advisorstockholder or otherwise (1) solicit, divert, take away or attempt to take away the business of ▇▇▇▇▇▇'▇ present or past customers, or representative)the customers of any affiliated or related companies of ▇▇▇▇▇▇, 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 enterprise competing with a business in which the Company ▇▇▇▇▇▇ or any subsidiary companies 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 solicit, hire, employ or endeavor to employ any of complying with the restrictions ▇▇▇▇▇▇'▇ employees or employees of this Section 5 is not unreasonable; any subsidiary companies of ▇▇▇▇▇▇, or (3) within a radius of fifty (50) miles from the general public policy city limits of any city in which ▇▇▇▇▇▇ is not harmed presently working for or soliciting customers or has worked for or solicited customers within the two (2) year period prior to termination of Company's engagement with ▇▇▇▇▇▇, transact any business with, own any interest directly or indirectly in, or be associated with or employed in any capacity by the restrictions or on behalf of this Section 5; and any person, partnership, firm, corporation or other business association engaged or seeking to engage in any business or enterprise competing directly or indirectly with ▇▇▇▇▇▇.
b. Employee will not, for a period of three (43) the restrictions years after Closing, acquire any further shares of this Section 5 are necessary for the protection stock of the Company and its Subsidiaries. The Executive further acknowledges and agrees Advanced Financial, Inc. (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"AFI") if the Executive breaches or threatens to breach acquisition of those shares will, (i) in the provisions reasonable opinion of this competent tax counsel for AFI, cause a "change of control" of AFI as determined under Section 5 and the Company (by vote of a majority 382 of the members Internal Revenue Code of the Board) seeks an injunction against the Executive1986, 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 breachamended, including the recovery regulations as promulgated thereunder, or under the comparable provision of money damages. If any future internal revenue law; or (ii) have the effect of reducing the provisions number 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 shares which First Mortgage Investment Company ("FMIC") could acquire under its option without such FMIC acquisition causing a "change 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 jurisdictioncontrol."
Appears in 1 contract
Sources: Designated Employee Agreement (Advanced Financial Inc)
Restrictive Covenants. The Executive agrees that he or she (a) For a period of five (5) years commencing on the Closing Date (the “Restricted Period”), each Seller shall not, during the Non-Compete Periodand shall cause each of her, his or its Affiliates not to, directly or indirectly indirectly, (other than on behalf of or at the request of the Company or its Subsidiaries):
(ai) engage inin or assist others in engaging in any Restricted Business anywhere in the Territory; (ii) participate in any way in or in any way have any financial interest of any nature whatsoever in any Person that engages directly or indirectly in any Restricted Business anywhere in the Territory in any capacity, have an interest in, or otherwise be employed by (whether including as an owner, operator, a partner, shareholder, member, officer, director, manager, employee, officerprincipal, director, consultantinvestor, advisor, lender, guarantor, agent, trustee or representative)consultant; (iii) call upon, provide consulting solicit, divert, attempt to solicit or management services todivert, or permit his conduct or her name carry on any business with any of the current or potential customers of any Acquired Company (“Company Customer”) for the benefit of any Restricted Business; or (iv) interfere or attempt to be used interfere with any business relationship between any Acquired Company and any Company Customer or supplier or any other Person with which any Acquired Company has a business relationship. Notwithstanding the foregoing, each Seller may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange that engages, directly or indirectly, in connection with any Restricted Business anywhere in the activities Territory if the Seller is not a controlling Person of, any business or organizationa member of a group which controls, engaged in a business that is competitive with a business in which the Company such Person and does not, directly or any of its Subsidiaries engages (a “Competitive Business”); providedindirectly, that ownership of less than one percent (own 1%) of the outstanding stock % or more of any publicly traded corporation shall not be deemed to be a violation class 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 securities 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;Person.
(b) During the Restricted Period, each Seller shall not, and shall cause each of her, his or its Affiliates not to, directly or indirectly, either for her, his or its own account or for the account of any other Person, solicit for employment or hire any Person employee of any Acquired Company or encourage, induce, solicit or endeavor to cause any such employee to leave such employment or hire any such employee who is or, within the prior twelve (12has left such employment; provided that nothing in this Section 6.02(b) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company shall prevent such Seller or any of her, his or its Subsidiaries Affiliates from soliciting or persuade or attempt hiring any employee whose employment with an Acquired Company has been terminated more than one (1) year prior to persuade any such Person not to be a customer the time of the Company solicitation or any hiring of such employee by the Seller or her, his or 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; orAffiliate.
(c) contact, approach Each Seller acknowledges that a breach 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 threatened breach of this Section 5(c6.02 would give rise to irreparable harm to Buyer, for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by any Seller of any such obligations, Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).
(d) Notwithstanding anything to Each Seller acknowledges that the contrary restrictions contained in this Section 5, with respect 6.02 are reasonable and necessary to protect the country legitimate interests of Mexico, Buyer and constitute a material inducement to Buyer 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 (and therefore will 6.02 should ever be limited) adjudicated to activities that are competitive with exceed 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 harmtime, which cannot be adequately compensated by money damagesgeographic, (y) if the Executive breaches product 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 Executiveservice, 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 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 6.02 and each provision hereof 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 1 contract
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 1 contract
Restrictive Covenants. The Executive 7.1 Until the first anniversary of the Separation Date, Reale agrees that he or she shall not, during without the Non-Compete PeriodCompany's prior written c▇▇▇▇▇t (which may be withheld for any reason or for no reason in the Company's sole discretion), do anything in any way inconsistent with his prior duties to, or adverse to the interests of, the Company, nor shall Reale, directly or indirectly (other than on behalf indirectly, himself or by or through a family memb▇▇ ▇▇ otherwise, alone or as a member of a partnership or at the request of the Company or its Subsidiaries):
(a) engage in, have an interest injoint venture, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employeea principal, officer, director, consultant, advisoremployee or stockholder of any other entity, 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 be engaged in or connected with any of its Subsidiaries engages (a “Competitive Business”); provided, other business competitive with 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 affiliates, except that Reale may own as a passive investment not more than five percent (5%) ▇▇ ▇he securities of any publicly held corporation that may engage in such Person not to be a customer business competitive with that of the Company or any of its Subsidiaries affiliates.
7.2 In view of the fact that Reale was brought into close contact with many confidential affairs o▇ ▇▇▇ Company and its affiliates not readily available to the public, Reale agrees that he shall continue to:
(a) ▇▇▇▇ secret and retain in the strictest confidence all non-public information about (i) research and development, test results, suppliers, venture or strategic partners, licenses and patents or patent applications, planned or existing products, know-how, financial condition and other financial affairs (such as costs, pricing, profits and plans for future development, methods of operation, business and marketing plans) of the Company and its affiliates; (ii) the employment policies and plans of the Company and its affiliates; and (iii) any other proprietary information relating to reduce the amount of business that Company and its affiliates, their operations, businesses, financial condition and financial affairs (collectively, the "Confidential Information") and, for such customer does with time as the Company or any of its Subsidiariesaffiliates is operating, Reale shall not disclose the Confidential Information to anyone not t▇▇▇ ▇n officer, director or enter into authorized employee of the Company or seek to enter into its affiliates, at any agreement (time after the date hereof, except with the Company's express written consent or except to the extent that such agreement is confidential information can be shown to have been in the public domain through no fault of a nature that is related Reale; and
(b) to deliver to the business in Company wi▇▇▇▇ ten days after the Separation Date, all memoranda, notes, records, reports and other documents relating to the Company or its affiliates, businesses, financial affairs or operations and all property associated therewith, which he may then possess or have under his control.
7.3 Reale shall not at any time during the three-year period following th▇ ▇▇▇aration Date, (i) employ any individual who was employed by the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, affiliates at 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 time during the immediately preceding twelve (12) months such period or attempt to persuade any Person not to continue to be employed or retained by during 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 jurisdictiontwelve
Appears in 1 contract
Restrictive Covenants. 3.1 The Executive agrees that he or she shall not, during the Non-Compete Period, directly or indirectly Covenantor hereby undertakes with Aramex (acting for itself and as trustee for every other than on behalf of or at the request of Aramex Group Company) and the Company that:
3.1.1 he shall not at any time use or its Subsidiaries):disclose to any person any Confidential Information concerning the business, customers or financial or other affairs of any Aramex Group Company and he shall make every effort to prevent the use or disclosure of such confidential information;
3.1.2 throughout the Relevant Period:
(a) engage inhe shall not (on his own behalf or on behalf of any person) directly or indirectly in competition with any business of any Aramex Group Company:
(i) seek to procure orders from or do business with any person who has been or is during the Relevant Period a customer or supplier of any Aramex Group Company; or
(ii) engage, have an interest inemploy, solicit or otherwise be contact with a view to his engagement or employment any person who has been or is during the Relevant Period 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 Aramex Group Company in a business that is competitive with a business in which the Company or any of its Subsidiaries engages (a “Competitive Business”)senior capacity; 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;and
(b) solicit he shall not within any Person who country in which any Aramex Group Company is orcarrying on business at the Relevant Date either alone or jointly with or as manager, within adviser, consultant, agent or employee of any person directly or indirectly carry on or be engaged in or be interested in any business in competition with the prior twelve (12) months, was, or whose Affiliate is or, within the prior twelve (12) months, was a customer business of the any Aramex Group Company or any of its Subsidiaries or persuade or attempt to persuade business carried on by 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 PersonAramex Group Company; orand
(c) contacthe shall not within any country in which any Aramex Group Company carries on business at any time during the Relevant Period either alone or jointly with or as manager, approach adviser, consultant, agent or solicit for employee of or consultant to any to person directly or indirectly carry on or be engaged in or be interested in any business in competition with the purpose business of offering employment to or hiring or retaining, or actually hire or retain any Person who is or was employed or retained by the Aramex Group Company or its Affiliates any business carried on by any Aramex Group Company;
3.1.3 at no time hereafter shall he directly or indirectly carry on a business either alone or jointly with or as an manager, adviser, consultant, agent or employee during of any person, whether or not the immediately preceding twelve (12) months business is similar to any business of any Aramex Group Company, under a name including the words "Aramex" or attempt to persuade any Person not to continue name likely to be employed or retained confused with a name used by any Aramex Group Company Provided always that 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 Covenantor shall not be deemed to constitute solicitation for purposes in breach of this Section 5(c)clause 3.1.3 by reason of being a director or employee of any Aramex Group Company.
3.2 The Covenantor acknowledges that he has had the opportunity to take independent advice on the restrictions contained in clause 3.
1. Whilst these restrictions are agreed by the Covenantor to be reasonable, it is agreed that if the restrictions (dindividually or taken together) Notwithstanding anything are adjudged 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 unenforceable but they would be enforceable if part or parts of the Mexican Subsidiaries of wording were deleted, amended or qualified or the Company engages. The Executive acknowledges and agrees that: (1) periods referred to reduced, then the time and geographical scope of relevant restrictions shall apply with such modifications as are needed to make them effective.
3.3 While the restrictions of this Section 5 in clause 3.1 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 considered by the restrictions of this Section 5; and (4) parties to be reasonable in all the restrictions of this Section 5 are necessary circumstances, it is agreed that if any such restrictions, by themselves, or taken together, shall be adjudged to go beyond what is reasonable in all the circumstances for the protection of the legitimate interests of the Aramex Group and the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach shareholders but would be adjudged reasonable if part or parts of the provisions of this Section 5 will cause wording thereof were deleted the Company irreparable harm, which cannot be adequately compensated by money damages, (yrelevant restriction or restrictions shall apply with such deletion(s) 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 necessary to make it or them valid and effective. Aramex and the Covenantor undertakes to each other and to the Company for such breachthat within 30 days after the Relevant Date, including they will execute a deed in the recovery of money damages. If any of form set out in the provisions of this Section 5 are determined to be wholly or partially unenforceableSchedule hereto, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable which deed relates to the maximum extent permitted by law. If any Covenantor's position as CEO and Deputy Chairman 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 jurisdictionAramex.
Appears in 1 contract
Restrictive Covenants. The Executive Company hereby covenants and agrees that he or she that, from and after the Effective Date, it shall not, during without the Non-Compete Period, directly prior approval or indirectly (other than on behalf prior written consent of or at the request a majority of the Company Board, which majority shall include a majority of the Independent Directors and one EGI-TRB Director, enter into any transaction, contract, agreement or its Subsidiaries):arrangement to:
(a) engage inamend, have an interest in, alter 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, repeal 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%) provision of the outstanding stock Certificate 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 Incorporation 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 By-laws 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, wascreate, or whose Affiliate authorize the creation of, or issue or obligate itself to issue shares of, any additional class or series of capital stock other than shares issued and sold to the ESOP at fair market value solely for purposes of maintaining its 51% equity ownership of the Company, on a fully diluted basis;
(c) liquidate, dissolve or wind-up the business and affairs of the Company, or consent to any of the foregoing;
(d) purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any dividend or make any distribution on, any shares of capital stock of the Company other than (i) repurchases of stock from former employees, officers, directors, consultants or other Persons who performed services for the Company or any subsidiary in connection with the cessation of such employment or service, (ii) dividends or distributions necessary to enable the ESOP to make all payments due under the terms of the ESOP Loan Agreement as they come due and (iii) repurchases of stock from the ESOP as required by the terms of the ESOP plan document;
(e) engage in transactions with Affiliates other than in their capacity as a stockholder, director, officer or employee of the Company, including any transaction, contract, agreement or arrangement between the ESOP and the Company, or any amendment or waiver thereof, other than this Agreement, the Merger Agreement, the ESOP Purchase Agreement, the ESOP Loan Agreement and the ESOP Pledge Agreement, and the transactions contemplated thereby;
(f) make, or permit any subsidiary to make, any loan or advance to, any subsidiary or other corporation, partnership or other entity unless it is orwholly owned by the Company;
(g) make, within the prior twelve (12) monthsor permit any subsidiary to make, was a customer any loan or advance to any Person, including, without limitation, any employee or director of the Company or any subsidiary, except (i) advances and similar expenditures in the ordinary course of its Subsidiaries business or persuade under the terms of an employee stock or attempt option plan approved by the Board, (ii) notes that may be issued by the Company to persuade participants of the ESOP under the terms of the ESOP and (iii) financing provided to the ESOP pursuant to Section 4.4;
(h) guarantee, directly or indirectly, or permit any such Person not subsidiary to be a customer guarantee, directly or indirectly, any indebtedness except for trade accounts of the Company or any subsidiary arising in the ordinary course of its Subsidiaries business;
(i) incur any aggregate indebtedness in excess of $250 million that is not already included in the Annual Budget approved by the Board, other than trade credit incurred in the ordinary course of business;
(j) acquire any assets or to reduce securities of any Person in a transaction resulting in payments by the Company in an aggregate amount in excess of business that such customer does with $250 million;
(k) sell, assign, license, pledge or encumber any assets of the Company for an amount in excess of $250 million;
(l) enter into any corporate strategic relationship involving the payment, contribution, or assignment by the Company or any of its Subsidiaries, or enter into or seek to enter into any agreement (to the extent such agreement is Company of a nature that is related to money or assets greater than $250 million;
(m) change the business in which fiscal year of the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such PersonCompany; or
(cn) contact, approach or solicit for the purpose of offering employment elect not to or hiring or retainingqualify, or actually hire or retain any Person who is or was employed or retained by the Company or its Affiliates continue to qualify 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)S corporation.
(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
Restrictive Covenants. The Executive agrees Employee acknowledges that in the course of his employment with the Company as a member of the Company’s senior executive and management team, he or she will have access to confidential and proprietary business information of the Company and its affiliates, and will develop through such employment business systems, methods of doing business, and contacts within the death care industry, all of which will help to identify him with the business and goodwill of the Company. Consequently, it is important that the Company protect its interests in regard to such matters from unfair competition. The parties therefore agree that for so long as the Employee shall remain employed by the Company and, if the employment of the Employee ceases for any reason (including voluntary resignation), then for a period of two (2) years thereafter, 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 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 within the death care industry 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 (y) 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 within the death care industry. 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 1 contract
Restrictive Covenants. The Executive agrees Employee acknowledges that in the course of his employment with the Company as a member of the Company’s senior executive and management team, he or she has had and will continue to have access to confidential and proprietary business information of the Company and its affiliates, and will develop through such employment business systems, methods of doing business, and contacts within the death care industry, all of which will help to identify him with the business and goodwill of the Company. Consequently, it is important that the Company protect its interests in regard to such matters from unfair competition. The parties therefore agree that for so long as the Employee shall remain employed by the Company and, if the employment of the Employee ceases for any reason (including voluntary resignation), then for a period of eighteen (18) months thereafter, the Employee shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at indirectly, without the request prior written consent of the Company or its Subsidiaries):in each instance:
(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 within the death care industry 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 (y) 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 within the death care industry. 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 1 contract
Restrictive Covenants. The Executive In consideration of the foregoing, Employee agrees that he or she 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:
(a) engage induring the tenure of Employee's employment with the Company and for a period of two (2) years following termination thereof, have an interest in, alone or otherwise be employed by (whether as an owner, operator, a partner, member, manager, employeejoint venturer, officer, director, consultantemployee, manager, executive, advisor, or consultant, agent, sales representative), provide consulting or management services toindependent contractor, owner, lender, financier, or permit his security holder of any company or her name to be used business, engage in connection any activity in direct or indirect competition with the activities ofBusiness conducted by the Company, any business its subsidiaries, successors or organizationassigns (collectively, engaged the "United Companies") anywhere in a business that is competitive with a business in which the Company United States or any of its Subsidiaries engages (a “Competitive Business”)Canada; provided; however, that 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 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 Executive3(a);
(b) solicit during the tenure of Employee's employment with the Company and for a period of two (2) years following termination thereof, 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 Business conducted by the United Companies to patronize any business directly or indirectly in competition with the Business conducted by the United Companies; (ii) canvass, solicit or accept from any of its Subsidiaries or persuade or attempt to persuade any such Person not to be person 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 knowledgeUnited Companies, any such Personcompetitive business; oror (iii) request or advise any person which has a business relationship with the Business conducted by the United Companies to withdraw, curtail or cancel any such person's business with such entity;
(c) contactduring the tenure of Employee's employment with the Company and for a period of two (2) years following termination thereof, 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 financed or controlled by Employee to employ, any Person person who is or was is, at that time, employed or retained by the Company United Companies, 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).United Companies;
(d) Notwithstanding anything at any time following the date hereof, directly or indirectly, in any way utilize the United Companies' customer lists or pricing data in connection with any business activity directly or indirectly in competition with the Business; and
(e) except pursuant to court order or other judicial decree (and with prior notice to the contrary United Companies thereof), engage in this Section 5any pattern of conduct that involves the making or publishing of written or oral statements or remarks (including, with respect without limitation, the repetition or distribution of derogatory rumors, allegations, negative reports or comments) which are disparaging, deleterious or damaging to the country integrity, reputation or good will 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 United Companies, their management, or of the Company engages. The Executive acknowledges and agrees that: (1) the time and geographical scope management of the restrictions of this Section 5 are reasonable; (2) the burden on the Executive of complying corporations affiliated 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 jurisdictionUnited Companies;.
Appears in 1 contract
Restrictive Covenants. The Executive agrees (a) Sellers and Flotek, on behalf of themselves and their Affiliates, hereby acknowledge and agree that he (i) Buyers would not have entered into this Agreement if Sellers and Flotek had not agreed to the covenants set forth in this Section 4.01 and (ii) Sellers and Flotek have had access to information that is confidential in relation to the Purchased Assets that constitutes a valuable, special and unique asset, and with respect to which Buyers are entitled to the protections afforded by this Agreement and to the remedies for enforcement of this Section 4.01 provided by law or she shall equity (including those remedies the availability of which may be within the discretion of the court or arbitrator that presides over any action for which enforcement of this Agreement is brought).
(b) For a period of one (1) year after the Closing Date, Sellers and Flotek agree that they will not, during the Non-Compete Periodand they shall cause their Affiliates not to, directly or indirectly solicit the employment or services of, or, cause or attempt to cause any employees of Sellers or their Affiliates who accept offers of employment with Buyers or their Affiliates (“Business Employee”) to leave the employment or service of, Buyers or their Affiliates, other than on behalf of or at general solicitations that do not target the request of the Company or its Subsidiaries):Business Employee.
(ac) engage inFor a period of three (3) years following the Closing Date, have Sellers and Flotek agree that they will not, and shall cause their Affiliates not to, directly or indirectly, acting alone or as a member of a partnership or company, as a holder or owner of any security, as an interest agent, advisor, consultant or independent contractor:
(i) carry on, participate in, or otherwise be employed by engaged in (whether for its own account or for the account of any other Person) the Restricted Business within the Restricted Area; or
(ii) share in the earnings of, or beneficially own or hold any security issued by, or otherwise own or hold any interest in any entity which is engaged in the Restricted Business in the Restricted Area; or
(iii) request or suggest, directly or indirectly, that any customer or supplier of Buyers relating to the Restricted Business, curtail or cancel its business or refrain from doing business with Buyers or their Affiliates within the Restricted Area. Notwithstanding the foregoing provisions of this Section 4.04(c), Sellers and Flotek and their Affiliates may own, solely as an ownerinvestment, operatorsecurities of an entity that is engaged in the Restricted Business if (1) such Person is not an Affiliate of the issuer of such securities, partner(2) such Person does not, memberdirectly or indirectly, managerbeneficially own more than five percent (5%) in the aggregate of such class of securities, employee(3) such class of securities is publicly traded and (4) such Person has no active participation in such entity.
(d) For a period of three (3) years following the Closing Date, officerSellers and Flotek shall, director, consultant, advisor, or representative), provide consulting or management services and shall cause their Affiliates to, hold in confidence and shall not use in any manner any confidential and proprietary information, whether written or permit his or her name oral, to the extent concerning the Purchased Assets; provided, however, that the such parties shall be used able to use any such information as may be reasonably required by such Persons in connection with the activities ofany insurance Proceedings or Tax audits against, or Proceedings concerning, any business such Persons. If Sellers, Flotek or organizationtheir Affiliates are requested or compelled to disclose any such confidential information by judicial or administrative process, engaged by any Government Authority or by other requirements of Law, such Person shall promptly notify Buyers in a business writing and shall disclose only that portion of such information that such Person is competitive with a business in which the Company or any of advised by its Subsidiaries engages (a “Competitive Business”)counsel that it is legally required to disclose; provided, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation such Person shall not cooperate with Buyers, at Buyers’ sole cost and expense, to permit Buyers to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be deemed to be a violation of accorded such information. Notwithstanding anything contained in 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(a4.04(d) should not apply to the Executive following the termination of the Executive’s employment by the Companycontrary, the provisions of this Section 5(a4.04(d) shall be deemed waived with respect not apply to the Executive;
(bi) solicit any Person who is or, information which has come within the prior twelve (12) monthspublic domain, was, except that which has come in the public domain through a Seller’s or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company Flotek’s 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 their respective 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 ’ breach of this Section 5(c)Agreement or (ii) information which was lawfully available to Sellers or Flotek on a non-confidential basis prior to its disclosure hereunder.
(de) Notwithstanding anything to the contrary in this Section 5Buyers, with respect to the country of Mexico, this Section 5 will only apply (Sellers 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 Flotek hereby agree that if the Executive commits Sellers or Flotek (or any Affiliate of such breach Persons) violate or threatens threaten 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 violate any of the provisions of this Section 5 are determined 4.01, it would be difficult to be wholly determine the entire cost, damage or partially unenforceable, the Executive hereby agrees injury which Buyers would sustain. Sellers and Flotek acknowledge that this Agreement if they (or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If of their Subsidiaries or Affiliates) violate any of the provisions of this Section 5 4.01, Buyers may have no adequate remedy at law. In the event of such violation, Buyers shall have the right, in addition to any other rights that may be available to them to seek to obtain in any court of competent jurisdiction injunctive relief to restrain any violation by such Person of any provision of this Section 4.01 or to seek to compel specific performance by such Person of one or more of its obligations under this Section 4.01. The seeking or obtaining by Buyers of such injunctive relief shall not foreclose or in any way limit the right of Buyers to obtain a money judgment against Sellers or Flotek for any damage to Buyers that may result from any breach by Sellers or Flotek (or any Subsidiary or Affiliate of such Persons) of any provision of this Section 4.01.
(f) Sellers and Flotek acknowledge that the covenants contained in Section 4.01 are reasonable in geographic and temporal scope and that the scope of each of the activities being restrained is reasonable and does not impose a greater restraint than is necessary to protect the goodwill or other business interest of Buyers. If any court of competent jurisdiction determines that any of such covenants, provisions or portions of Section 4.01, or any part thereof, are unenforceable and invalid, then (i) the validity and enforceability of any remaining covenants, provisions or portions thereof shall not be affected by such determination, (ii) those of such covenants, provisions or portions that are determined to be wholly unenforceable because of the duration or partially unenforceable scope thereof shall be severed and/or reformed by the court to reduce their duration or scope so as to render them enforceable against Sellers and Flotek and (iii) all remaining covenants, provisions, portions and terms of this Section 4.01 shall be valid and enforceable to the fullest extent permitted by law.
(g) If Closing occurs, the restrictions contained in any jurisdiction, such determination this Section 4.01 shall not be a bar to or in any way diminish survive the Company’s right to enforce any such covenant in any other jurisdictionClosing Date for the periods specified.
Appears in 1 contract
Sources: Asset Purchase Agreement (Flotek Industries Inc/Cn/)
Restrictive Covenants. The Executive agrees that he or she shall Buyer 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 inadopt a plan of liquidation or resolutions providing for the liquidation, have an interest indissolution, merger, consolidation 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 reorganization 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 Buyer or any of its Subsidiaries, or enter into any of their respective assets, or seek to enter into file a petition in bankruptcy under any agreement (to the extent such agreement is Law on behalf of a nature that is related to the business in which the Company Buyer or any of its Subsidiaries engage) with, or consent to the Executive’s knowledgefiling of any bankruptcy petition against Buyer or any of its Subsidiaries;
(ii) split, consolidate, exchange or reclassify the Buyer Shares, or undertake any other capital reorganization of Buyer;
(iii) reorganize, amalgamate, merge or otherwise combine Buyer or any of its Subsidiaries with any Person, other than pursuant to this Agreement;
(iv) acquire (by amalgamation, merger, plan of arrangement, consolidation, exchange, acquisition of shares or assets, lease, license, or otherwise) any Person or division of that Person, or make any investment in that Person or division by purchase of securities, contributions of capital, property transfer or otherwise, other than transactions between two or more wholly-owned Subsidiaries of Buyer or between Buyer and one or more such wholly-owned Subsidiaries;
(v) amend the Buyer Articles or by-laws of the Buyer as they exist at the date of this Agreement;
(vi) declare or pay any dividends or other distribution or payment (whether in cash, shares or property) in respect of any shares of its capital stock, other than distributions by a wholly-owned Subsidiary in the Ordinary Course;
(vii) redeem, purchase or otherwise acquire any shares of its capital stock or any of its outstanding securities, other than in connection with the exercise of outstanding Buyer Options from time to time in accordance with their terms;
(viii) allot, issue or grant any securities of Buyer or any of its Subsidiaries (including securities convertible into, exchangeable for, or that carry a right to acquire, directly or indirectly, any such Personsecurities of Buyer or any of its Subsidiaries), other than:
(A) Buyer Shares issuable upon exercise of convertible securities of Buyer issued before the date of this Agreement; or
(cB) contactpursuant to a Buyer Permitted Financing,
(ix) (A) sell, approach transfer, assign or solicit for dispose of any material right in any material Intellectual Property, (B) other than non-exclusive licenses in the purpose Ordinary Course that are terminable by the Buyer or any of offering employment its Subsidiaries without any consent, penalty or payment, lease or grant a license of any material right in any material Intellectual Property or any Intellectual Property material to any Pharmaceutical Product; or hiring (C) assign or retaininggrant a license of any material right in any other material Owned Intellectual Property;
(x) substantially discontinue or materially change the nature of the business of the Buyer and its Subsidiaries;
(xi) take any action that might reasonably be expected to, directly or indirectly, interfere with, prevent or materially delay the completion of the Arrangement, or actually hire which would render, or retain which may reasonably be expected to render, untrue or inaccurate (without giving effect to, applying or taking into consideration any Person who is materiality or was employed Material Adverse Effect qualifier already contained within such representation or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12warranty) months or attempt to persuade in 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 material 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 representations and warranties of the Company engages. The Executive acknowledges and agrees that: Buyer set forth in this Agreement; or
(1xii) the time and geographical scope of the restrictions of announce an intention, propose, authorize or enter into any agreement, or otherwise make a commitment to do action prohibited 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 jurisdiction4.2(b).
Appears in 1 contract
Sources: Arrangement Agreement (Cybin 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, ▇▇▇▇▇▇, ▇▇▇▇▇▇ 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
Sources: Consulting Agreement (Brinks Co)
Restrictive Covenants. (a) The Executive agrees Employee acknowledges and recognizes that during the Employment Period he 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 8(b)(i), if any), without the prior written consent of the Corporation, the Employee shall not, at any time during the employer/employee relationship between the Corporation and the Employee and for the one-year period after the termination of such employer/employee relationship, (i) directly or indirectly engage in, represent in any way, or be connected with, any Competing Business directly competing with the business of the Corporation or any direct or indirect subsidiary or affiliate thereof within the state in which the Employee is employed or any other state of the United States or any country other than the United States in which the Corporation is doing business, whether such engagement shall be as an officer, director, owner, employee, partner, affiliate or other participant in any Competing Business, (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 any direct or indirect subsidiary or affiliate thereof to terminate their employment with the Corporation 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 sale of products in any city or county in any state of the United States or any country other than 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) the business of the Corporation, (B) any of the products manufactured, sold or distributed by the Corporation or (C) any products or business being developed or conducted by the Corporation.
(b) The Employee understands that the foregoing restrictions may limit his ability to earn a livelihood in a business similar to the business of the Corporation or any subsidiary or affiliate thereof, but he or she nevertheless believes that he or she shall not, during the Non-Compete Period, directly or indirectly (has received and will receive sufficient consideration and 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 benefits as an employee during of the immediately preceding twelve Corporation and as otherwise provided hereunder to justify clearly such restrictions which, in any event (12) months or attempt to persuade any Person given his education, skills and ability), the Employee does not to continue to be employed or retained by the Company or its Affiliates or to terminate his believe would prevent him or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in from earning 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)living.
(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
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, 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 (a “Competitive Business”)subsidiaries or affiliates does business; providedcanvass, 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 1 contract
Sources: Employment Agreement (Healthier Choices Management Corp.)
Restrictive Covenants. The Executive Employee, by entering into this Agreement, acknowledges receipt of good and adequate consideration to support the covenants provided in this Section l0, these covenants being a fundamental part of the Company's willingness and inducement to employ the Employee hereunder . As long as the Company is not in default of any provision of this Agreement, the Employee agrees that he or she the restrictive covenants of this Section 1 0 shall not, be in full force and effect during the Non-Compete Periodterm of this Agreement and for a period of two years following the termination of the Employee's employment for whatever reason by either party hereto; provided, that if the Employee is entitled to receive Severance Compensation pursuant to Section 9(a)(ii)or (iii) above, the restrictive covenants of this Section l 0 shall be in full force and effect for a period of six years following the termination of the Employee's employment. The Employee covenants and agrees that, so long as the restrictive covenants of this Section 1 0 shall be in full force and effect, he will 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 Own any interest in, or otherwise be employed in (other than 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 any class of stock of a publicly held corporation), manage, operate, control, loan money to, be employed or engaged by, render consulting or advisory services to, serve as a director of, represent, or participate in or be connected with the management or control of, any publicly traded corporation shall not be deemed to be directly competing business (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"Competing Business");
(b) solicit Solicit any Person who is or, within the prior twelve (12) months, was, client or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of to discontinue its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer use of the Company or any of its Subsidiaries Company's services or to reduce the amount of divert such business that such customer does to any individual, partnership , firm, corporation or other entity then in competition with the Company or any of its Subsidiariessubsidiaries or affiliates;
(c) Solicit any of the employees or sales representatives of the Company to work for any business, individual, partnership, firm, corporation 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 other entity then in which competition with the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personsubsidiaries or affiliates; or
(cd) 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 Disparage the Company 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 or to terminate his or her employment products or services or wrongfully interfere with or disrupt the Company relationship , contractual or its Affiliates; providedotherwise, 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 between 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 breachparty, including the recovery of money damages. If without limitation, any of the provisions of this Section 5 are determined to be wholly supplier, distributor, lessor, lessee, licensor 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 jurisdictionlicensee.
Appears in 1 contract
Restrictive Covenants. The Executive (i) Each of the Sellers (each, a “Restricted Person”) covenants and agrees that he or she shall notthat, during the Non-Compete period commencing at the Closing and continuing until the third (3rd) anniversary of the Closing Date (the “Restricted Period”), such Restricted Person shall not (and shall cause its Affiliates not to) do any of the following, or serve as a partner, joint venturer, director, manager, trustee, officer, employee, independent contractor, agent or equityholder (excluding de minimis holdings in publicly traded companies) of any Person that does any of the following, in each case whether directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):indirectly:
(aA) participate or engage in, have an interest or provide any financial or other assistance to any Person participating or engaging in, (1) with respect to ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, the Business 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 enterprise that is similar to or competitive with a business the Business (in which each case, as conducted historically and/or as of the Closing) and (2) with respect to Dandin (and its Affiliates), the Restricted Business, in each case, in any geographical region (I) that the Company currently conducts its Business, (II) the Company’s utility customers service (whether or not the Company’s Business currently services such geographic areas, and (III) New York and New Jersey (the “Restricted Territory”), provided that this clause (A) shall not apply to any Restricted Person serving in any capacity on behalf of, or taking any action at the direction of, the Buyer or any of its Subsidiaries engages (Affiliates. Notwithstanding the foregoing, a “Competitive Business”); providedSeller may own, that ownership of less than one percent (1%) of the outstanding stock directly or indirectly, solely as an investment, securities of any publicly Person 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 on any national securities exchange if such services Seller is not the primary duties a controlling Person of, or business activities a member of a group which controls, such Person and does not, directly or indirectly, own 5% or more of any class of securities of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply Person (including 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 ExecutiveParent Shares);
(bB) solicit solicit, contact, or conduct business with (or attempt to conduct business with) any Person who is orthen, or was 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 prior thereto, a customer of 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 5Company, with respect to Dandin, within the country Restricted Territory, in each case for purposes of Mexico, this Section 5 will only apply (and therefore will be limited) endeavoring to activities offer such Person products or services that are competitive similar to the products and services offered by the Company as of the later of (I) the Closing and (II) with respect to ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, such person’s termination of employment with the businesses in which Company;
(C) induce or entice (or attempt to induce or entice) any distributor, supplier, vendor, or any other Person having a business relationship with the Company to terminate or adversely modify its relationship with the Company;
(D) solicit, contact, hire, engage, or enter into any other business relationship with (or attempt to do any of the Mexican Subsidiaries foregoing) any Person who is then, or was within the six (6) months prior thereto, a director, manager, officer or employee, independent contractor, or agent of the Company engagesCompany, or induce or entice (or attempt to induce or entice) any such Person to terminate or adversely modify its relationship with the Company, provided that nothing in this clause (D) shall prohibit the publishing of general advertisements not specifically targeted to any directors, managers, officers, employees, independent contractors, or agents of the Company; or
(E) make or endorse any disparaging, derogatory, or otherwise negative written or oral communication regarding the Business, the Buyer, the Company, or any of their respective Affiliates or Representatives.
(ii) The Restricted Period with respect to any Restricted Person shall be tolled during (and shall be deemed to be automatically extended by) any period during which such Restricted Person is in violation of any provision set forth in clause (i) above.
(iii) Each Restricted Person agrees that the Business is unique and irreparable damage would occur, and money damages would be inadequate, if any provision of clause (i) above were not performed in accordance with its terms and that the Buyer shall be entitled to injunctive relief and specific performance of the terms of clause (i) above, in addition to any other remedy to which it is entitled at law or in equity. The Executive acknowledges Each Restricted Person irrevocably waives any requirement for the securing or posting of any bond in connection with such remedy. Each Restricted Person further agrees that the only permitted objection that it may raise in response to any Action for equitable relief is that it contests the existence of a breach or threatened breach of clause (i) above.
(iv) Each Restricted Person agrees that all restrictions set forth in clause (i) above, including those relating to the duration of the Restricted Period 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 Restricted Territory, are necessary for and fundamental to the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach operation of the provisions of Business, are reasonable and valid, and constitute a material inducement for the Buyer to enter into this Section 5 will cause Agreement and to consummate the Company irreparable harm, which cannot be adequately compensated by money damages, (y) if Transaction. To 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 extent 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 holds that the duration, without posting any bond scope, or other security area restrictions set forth in clause (i) above 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 without the necessity of proof of actual damage, in addition tothat such court shall be permitted, 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 shall automatically be reformed so that it is enforceable revised, to modify the restrictions set forth in clause (i) above to cover the maximum extent period, scope and area permitted by law. If any of the provisions of this Section 5 are determined to be wholly law 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 jurisdictionequity.
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (XL Fleet Corp.)
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 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 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;
6.2. for any reason, (bi) solicit 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 of its Subsidiaries affiliates to patronize any business directly or persuade indirectly in competition with the businesses conducted by the Company or attempt to persuade any such Person not to be a of its subsidiaries or affiliates in any market in which the Company or any of its affiliates does business; (ii) canvass, solicit or accept from any customer of the Company or any of its Subsidiaries affiliates any such competitive business; or (iii) request or advise any customer or vendor of the Company or any of its 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 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
Sources: Employment Agreement (Catalyst Pharmaceutical Partners, Inc.)
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 Execution 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 Execution 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 ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ 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 1 contract
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
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
Sources: Performance Based Restricted Stock Unit Grant Agreement (Overseas Shipholding Group Inc)
Restrictive Covenants. The Executive agrees In order to assure that USE will realize the benefits of the Merger, each of Nevi▇▇, ▇▇ijer and Schr▇▇▇▇▇ ▇▇▇ees with USE that he will not:
(a) for a period of five years from the Effective Time, directly or she indirectly, alone or as a partner, joint venturer, officer, director, employee, consultant, agent, independent contractor or stockholder of any company or business, engage in the business of waste oil or water oil or water waste collection, disposal or recycling environmental remediation or emergency response waste clean-up (the "Environmental Services Business") in any county in any state in the United States in which USE or any of its subsidiaries conducts business at the time such Shareholder commences to engage in such activity; 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-the-counter market shall notnot be deemed, during in and of itself, to violate the Non-Compete Periodprohibitions of this Section;
(b) for a period of five years from the Effective Time, directly or indirectly (other than on behalf i) induce any Person which is a customer of USE or any of its subsidiaries to patronize any business directly or indirectly in competition with the Environmental Services Business conducted by USE or any of its subsidiaries; (ii) canvass, solicit or accept from any Person which is a customer of USE or any of its subsidiaries, any such competitive business; or (iii) request or advise any Person which is a customer or supplier of USE or any of its subsidiaries to withdraw, curtail or cancel any such customer's or supplier's business with such entity;
(c) for a period of five years from the Effective Time, directly or indirectly employ, or knowingly permit any company or business directly or indirectly controlled by him, to employ, any person who was employed by USE or any of its subsidiaries at or within the request prior six months, or in any manner seek to induce any such person to leave his or her employment, however, that Midwest Custom Chemicals, Inc. ("MCC") shall be permitted to engage such 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, USE's employees who are currently 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 MCC so long as providing such services is not the primary duties or business activities of such individual; providedscope of, 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 devoted to, such activities for MCC are not more than what such employees provided to MCC historically, 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 provided further 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 jurisdictionthe
Appears in 1 contract
Restrictive Covenants. The Executive Employee, by entering into this Agreement, acknowledges receipt of good and adequate consideration to support the covenants provided in this Section 10, these covenants being a fundamental part of the Company's willingness and inducement to employ the Employee hereunder. As long as the Company is not in default of any provision of this Agreement, the Employee 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 restrictive covenants 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 10 shall not be deemed to be a violation in full force and effect during the term of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities Agreement and for a period of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive two years following the termination of the Executive’s Employee's employment for whatever reason by either party hereto; provided, that if the CompanyEmployee is entitled to receive Severance Compensation pursuant to Section 9(a)(ii)or (iii) above, the provisions restrictive covenants of this Section 5(a) 10 shall be deemed waived in full force and effect for a period of six years following the termination of the Employee's employment. The Employee covenants and agrees that so long as the restrictive covenants of this Section 10 shall be in full force and effect, he will not, directly or indirectly:
(a) Own any interest in (other than by ownership of less than five percent (5%) of any class of stock of a publicly held corporation), manage, operate, control, loan money to, be employed or engaged by, render consulting or advisory services to, serve as a director of, represent, or participate in or be connected with respect to the Executivemanagement or control of, any directly competing business (a "Competing Business");
(b) solicit Solicit any Person who is or, within the prior twelve (12) months, was, client or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of to discontinue its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer use of the Company or any of its Subsidiaries Company's services or to reduce the amount of divert such business that such customer does to any individual, partnership, firm, corporation or other entity then in competition with the Company or any of its Subsidiariessubsidiaries or affiliates;
(c) Solicit any of the employees or sales representatives of the Company to work for any business, individual, partnership, firm, corporation 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 other entity then in which competition with the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personsubsidiaries or affiliates; or
(cd) 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 Disparage the Company 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 or to terminate his or her employment products or services or wrongfully interfere with or disrupt the Company relationship, contractual or its Affiliates; providedotherwise, 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 between 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 breachparty, including the recovery of money damages. If without limitation, any of the provisions of this Section 5 are determined to be wholly supplier, distributor, lessor, lessee, licensor 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 jurisdictionlicensee.
Appears in 1 contract
Restrictive Covenants. 9.01 The Executive agrees that he or she Employee shall not, not either during the Non-Compete Period, directly or indirectly (other than on behalf continuance of his employment hereunder or at any time thereafter divulge to any person whomsoever or to any body corporate or unincorporated and shall use his best endeavours to prevent the request unauthorized publication or disclosure of any trade secret or any confidential information concerning the business or finances of any member 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 Group or any of its Subsidiaries engages dealings, transactions or affairs which may come to his knowledge during or in the course of his employment hereunder.
9.02 Forthwith upon the termination of the employment of the Employee hereunder, and/or at any other time if the Company shall so request, the Employee shall deliver to the Company all documents (including correspondence, lists of customers, notes, memoranda, plans, drawings and other documents of whatsoever nature) models or samples made or compiled by or delivered to the Employee during his employment hereunder and concerning the business, finances or affairs of any member of the Group. For the avoidance of doubt it is hereby declared that the legal ownership over all such documents as aforesaid shall at all times be vested in the relevant member of the Group.
9.03 The Employee shall not at any time during the continuance of his employment hereunder or for a “Competitive Business”); providedperiod of 6 months thereafter in any place where the Group carries on business or be employed, concerned or interested directly or indirectly whether as shareholder, director, employee, partner, agent or otherwise and whether alone or jointly with others in any business that ownership is in competition with the business of less any member of the Group (other than one percent as a holder of not more than two per cent (12%) of the outstanding stock issued shares or debentures of any publicly traded corporation company listed on any recognized stock exchange).
9.04 The Employee shall not be deemed to be at any time during the continuance of his employment hereunder or for a violation period of this Section 5 solely by reason thereof; provided6 months thereafter either on his own account or in conjunction with or on behalf of any other person or body corporate or unincorporated in competition with any member of the Group directly or indirectly employ, further, that, providing investment banking solicit or legal services to a Competitive Business as an independent consultant, independent advisor entice away from any member of the Group any person or independent representative shall not be deemed to be a violation body corporate or unincorporated who now is or at any time during or at the date 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 said employment may have become a customer or supplier or prospective customer or supplier of any member of the Group and with whom the Employee had personal contact or dealings during his said employment.
9.05 The Employee shall not at any time during the continuance of his employment hereunder or for a period of 6 months thereafter either on his own account or in conjunction with or on behalf of any other person or body corporate or unincorporated directly or indirectly solicit or entice away from any member of the Group or employ or otherwise engage any person who now is or at any time during or at the date of the termination of the said employment may have become an employee of any member of the Group and with whom the Employee had contact during the said employment.
9.06 While the restrictions contained in Clause 9 are considered by the Companyparties to be reasonable in all the circumstances, it is recognised that restrictions of the provisions of this Section 5(a) nature in question may fail for technical reasons unforeseen and accordingly it is hereby agreed and declared that if any such restrictions 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 adjudged to be a customer of void as going beyond what is reasonable in all 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 circumstances for the protection of the Company and its Subsidiaries. The Executive further acknowledges and agrees (x) the Executive’s breach interest 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 of wording thereof were deleted or the Boardperiods (if any) seeks an injunction against thereof were reduced 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 said restriction 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 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 1 contract
Sources: Employment Agreement (Aureus Greenway Holdings Inc)
Restrictive Covenants. The Executive Employee, by entering into this Agreement, acknowledges receipt of good and adequate consideration to support the covenants provided in this Section 10, these covenants being a fundamental part of the Company's willingness and inducement to employ the Employee hereunder. As long as the Company is not in default of any provision of this Agreement, the Employee 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 restrictive covenants 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 10 shall not be deemed to be a violation in full force and effect during the term of this Section 5 solely by reason thereof so long as providing such services is not the primary duties or business activities Agreement and for a period of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(a) should not apply to the Executive two years following the termination of the Executive’s Employee's employment for whatever reason by either party hereto; provide that if the CompanyEmployee is entitled to receive Severance Compensation pursuant to Section 9(a)(ii)or (iii) above, the provisions restrictive covenants of this Section 5(a) I 0 shall be deemed waived in full force and effect for a period of six years following the termination of the Employee's employment. The Employee covenants and agrees that, so long as the restrictive covenants of this Section 10 shall be in full force and effect, he will not, directly or indirectly:
(a) Own any interest in (other than by ownership of less than five percent (5%) of any class of stock of a publicly held corporation), manage, operate, control, loan money to, be employed or engaged by, render consulting or advisory services to, serve as a director of, represent, or participate in or be connected with respect to the Executivemanagement or control of, any directly competing business (a "Competing Business");
(b) solicit Solicit any Person who is or, within the prior twelve (12) months, was, client or whose Affiliate is or, within the prior twelve (12) months, was a customer of the Company or any of to discontinue its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer use of the Company or any of its Subsidiaries Company's services or to reduce the amount of divert such business that such customer does to any individual, partnership, firm, corporation or other entity then in competition with the Company or any of its Subsidiariessubsidiaries or affiliates;
(c) Solicit any of the employees or sales representatives of the Company to work for any business, individual, partnership, firm, corporation 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 other entity then in which competition with the Company or any of its Subsidiaries engage) with, to the Executive’s knowledge, any such Personsubsidiaries or affiliates; or
(cd) 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 Disparage the Company 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 or to terminate his or her employment products or services or wrongfully interfere with or disrupt the Company relationship, contractual or its Affiliates; providedotherwise, 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 between 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 breachparty, including the recovery of money damages. If without limitation, any of the provisions of this Section 5 are determined to be wholly supplier, distributor, lessor, lessee, licensor 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 jurisdictionlicensee.
Appears in 1 contract
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
Sources: Asset Purchase Agreement (Emergent BioSolutions 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, 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 twenty-four (24) months thereafter (the “Non-Compete Period”), directly or indirectly, act as a proprietor, investor, director, officer, employee, substantial shareholder, consultant, or partner in any Competing Business in Texas or any other geographic area in which the Company or its 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 (i.e., “indirectly” means by others under your direct supervision or under your indirect supervision but with your knowledge) (A) solicit customers or clients of the Company or any of its Subsidiaries or subsidiaries to reduce the amount of business that such customer does terminate their relationship with the Company or any of its Subsidiaries, subsidiaries 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 engagesubsidiaries, 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 subsidiaries; provided, that in each of (ii) and (iii) above, such restrictions shall not apply with respect to any such Person; or
member of the Sponsor Group or any of its Affiliates (c) contactother than the Company and its subsidiaries). Notwithstanding the foregoing, approach or solicit 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.
(12b) months Notwithstanding subparagraph (a) above, if at any time a court holds that the restrictions stated in such subparagraph (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 Restricted Group shall mean, collectively the contrary in this Section 5Company, with respect to the country of Mexicoits subsidiaries, 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 BoardSponsor Group and their respective Affiliates.
(vi) seeks an injunction against the ExecutiveSponsor Group shall mean Kohlberg Kravis ▇▇▇▇▇▇▇ & Co. L.P., 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 toTPG Capital L.P., 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 jurisdictionSachs & Co.
Appears in 1 contract
Sources: Employment Agreement (Energy Future Holdings Corp /TX/)
Restrictive Covenants. The Executive agrees that he 16.1 Marathon hereby covenants that, for so long as it or she shall notany of its Affiliates hold Shares in the Company, during and for a period of five (5) years from the Non-Compete Period, directly or indirectly (other than on behalf of or at the request date it and its Affiliates cease to be Shareholders of the Company (the “Termination Date”) and subject to clause 16.6, neither Marathon nor any of its Affiliates nor any of their respective officers or its Subsidiaries):directors (whether directly, indirectly or through an agent) shall:
(a) engage in, have an interest in, or otherwise be employed by concerned in any business which is (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 a) a competitor with the activities ofBusiness or the business of any FSI Restricted Entity, in each case as they are conducted as at the Relevant Time; and (b) located in the United Arab Emirates; or
(b) induce or attempt to induce any business or organization, engaged in a business that is competitive with a business in which the Company Person who it (or any of its Subsidiaries engages (a “Competitive Business”); provided, that ownership of less than one percent (1%Affiliates) 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 know 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 Company, any OpCo or any FSI Restricted Entity to cease to do business with, or to restrict or vary the terms of its Subsidiaries or persuade or attempt to persuade any such Person not to be a customer of the Company or business to, 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 Personthem; or
(c) contact, approach induce or solicit for the purpose of offering employment attempt to or hiring or retaining, or actually hire or retain induce any Person who it (or any of its Affiliates) know is a supplier of the Company, any OpCo or was employed or retained by the Company or its Affiliates as an employee during the immediately preceding twelve (12) months or attempt any FSI Restricted Entity to persuade any Person not cease to continue to be employed or retained by the Company or its Affiliates supply, or to terminate his materially restrict or her employment or services with vary the Company or its Affiliatesterms of supply to, any of them; 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).or
(d) Notwithstanding anything make use of any information of a secret or confidential nature in the United Arab Emirates relating to the contrary in Business or the affairs of the Group or any FSI’s Affiliates, except that this Section 5restriction shall not apply where:
(i) required by any applicable law, with respect to the country rules of Mexico, this Section 5 will only apply (and therefore will be limited) to activities that are competitive with the businesses in any securities exchange on which securities of Marathon or any of its Affiliates are listed or any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body; or
(ii) such information is already in the Mexican Subsidiaries of public domain or comes into 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 domain other than through breach of clause 18 or this clause 16.1(d); or
(iii) such information was already in the provisions lawful possession of this Section 5 will cause the Marathon or any of its Affiliates prior to it being acquired by a Group Company irreparable harmor any FSI Restricted Entity, which cannot be adequately compensated by money damagesor is derived from confidential information of Marathon or any of its Affiliates; or
(e) induce, or attempt to induce any person who it (yor any of its Affiliates) 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 know is an injunction against the Executive, there is a reasonable probability employee of the Company’s eventual success on , any OpCo or any FSI Restricted Entity to leave 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 employment of the Company. The Executive consents and agrees that if , any OpCo or any FSI Restricted Entity (as applicable), and, for 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 purposes 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 jurisdictionclause 16:
Appears in 1 contract
Sources: Shareholders Agreement (Marathon Digital Holdings, Inc.)
Restrictive Covenants. (a) The Executive Officer agrees that he or she shall at all times during his employment and for a period of one year thereafter, the Officer will not, during the Non-Compete Period, directly or indirectly indirectly, (other than on behalf of i) solicit for employment, recruit or at the request hire, either as an employee or a consultant, any employee, consultant or independent contractor of the Holding Company (such term to include all predecessor institutions, including the Officer’s previous employer, for all purposes of this section 12) or any of its Subsidiaries):
(a) engage in, have subsidiaries who was an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, manager, employee, officer, director, consultant, advisor, consultant or representative), provide consulting or management services to, or permit his or her name to be used in connection with independent contractor of the activities of, any business or organization, engaged in a business that is competitive with a business in which the Holding Company or any of its Subsidiaries engages subsidiaries at any time during the 12 months preceding or following the Officer’s termination of employment, (a “Competitive Business”); providedii) induce or attempt to induce any employee, that ownership of less than one percent (1%) consultant or independent contractor 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 Holding Company or any of its Subsidiaries subsidiaries who was an employee, consultant or persuade or attempt to persuade any such Person not to be a customer independent contractor of the Holding Company or any of its Subsidiaries subsidiaries at any time during the 12 months preceding or following the Officer’s termination of employment, to reduce terminate his employment with, or otherwise cease his relationship with, the amount Holding Company or its subsidiaries, or (iii) solicit, interfere with, divert or take away or attempt to interfere with, divert or take away, the business or patronage of business that such customer does with (A) any of the clients, customers or accounts of the Holding Company or any of its Subsidiariessubsidiaries at the time of the Officer’s termination of employment, or enter into (B) prospective clients, customers or seek to enter into any agreement (to accounts of the extent such agreement is of a nature that is related to the business in which the Holding Company or any of its Subsidiaries engagesubsidiaries at any time during the 12 months preceding the Officer’s termination of employment the solicitation of which the Officer had knowledge at the time of his termination of employment.
(b) withThe Officer acknowledges that in connection with the acquisition of his previous employer by the Holding Company and in connection with the performance of his duties under this Agreement, the Officer may have learned and/or may learn confidential or proprietary information about the Holding Company and its subsidiaries or third parties. Confidential or proprietary information includes, among other things, any nonpublic information concerning the Holding Company or its subsidiaries, including their respective business, financial performance, marketing or strategic plans, customers, and product pricing information, as well as any nonpublic information provided by a third party with the expectation that the information will be kept confidential and used solely for the business purpose for which it was conveyed (collectively, “Confidential Information”). The Officer agrees that at all times during his employment and thereafter, the Officer shall not disclose any Confidential Information, including any Confidential Information he may have acquired prior to the date of this Agreement, to others outside of the ExecutiveHolding Company or its subsidiaries or use such information for his own or someone else’s knowledgebenefit. The Officer agrees that such Confidential Information may be disclosed within the Holding Company or its subsidiaries only to those individuals who need the information to carry out their business responsibilities. The Officer acknowledges that he is hereby notified, in accordance with the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b), that: (i) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, in each case solely for the purpose of reporting or investigating a suspected violation of law; (ii) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such Personfiling is made under seal; orand (iii) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal and (B) does not disclose the trade secret except pursuant to court order.
(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 While employed or retained by the Holding Company and for a period of seven (7) years thereafter, the Officer shall not, directly or indirectly, make or publish any disparaging statements (whether written or oral) regarding the Holding Company or its Affiliates as an employee during subsidiaries, or the immediately preceding twelve (12) months affiliates, directors, officers, agents, principal stockholders or attempt to persuade customers 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 of them. 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 the Officer shall not be deemed to constitute solicitation for purposes of this Section 5(c)prohibited from making any truthful statements in connection with any court proceedings.
(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 Officer acknowledges and agrees that: (1) the time and geographical scope of that the restrictions of contained in this Section 5 section 12 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; reasonable and (4) the restrictions of this Section 5 are necessary for the protection of the immediate interests of the Holding Company, and any violation of these restrictions would cause substantial injury to the Holding Company and its Subsidiariesthat the Holding Company would not have entered into this Agreement without receiving the protective covenants contained in this section 12. The Executive further acknowledges and agrees (x) In 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 event of a majority breach or a threatened breach by the Officer of these restrictions, the members of the Board) seeks Holding Company will be entitled to an injunction against restraining 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 Officer from such breach or threatens to commit any breach, the Company threatened breach (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 providing the inadequacy as a remedy of actual damagemoney damages or the posting of bond); provided, however, that the right to injunctive relief will not be construed as prohibiting the Holding Company from pursuing any other available remedies, whether at law or in addition toequity, and not in lieu of, such other remedies as may be available to the Company for such breach or threatened 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
Restrictive Covenants. a) The Executive Representative agrees that during the term of this Agreement, he will not, directly or she indirectly, be in any manner engaged in, connected with (as a shareholder, employee, independent contractor or otherwise) or employed by (or act as an independent contractor or other representative for) any person, firm or corporation which is engaged in a business which, anywhere inside or outside the United States or Canada, (i) is competitive with the Company or a successor or affiliate thereof or (ii) promotes, sells, markets, licenses, distributes or advertises products whether existing or under development, which are similar to or competitive with the Products anywhere; provided, however, that this subsection shall not be deemed to limit the Representative's, right to (i) own less than 10% of the common stock of a publicly held corporation whose shares are traded on a recognized stock exchange or over-the-counter or (ii) pursue independently of the Company an opportunity presented by the Representative to the Company but affirmatively rejected by the Company during the one-year period following such rejection.
b) During the term of this Agreement, the Representative shall not, during the Non-Compete Period, directly or indirectly indirectly, (other than on behalf i) solicit for employment and/or hire or offer employment to any individual who is or was an employee of or at the request Company within 90 days of the date of this Agreement and who becomes an employee of the Company or its Subsidiaries):
(a) engage in, have an interest insubsidiaries at any time during the term of this Agreement, 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, ii) encourage 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 relationship with the Company or its Affiliates; providedsubsidiaries.
c) During the term of this Agreement, that notwithstanding except in furtherance of the foregoingRepresentative's sales representative duties under this Agreement, 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 the Representative 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 solicit any person or entity who is or was a customer or client of the Mexican Subsidiaries Company, or its subsidiaries and who becomes a customer or client of the Company engages. The Executive acknowledges and agrees that: (1) or its subsidiaries at any time during the time and geographical scope of the restrictions term 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 Agreement, for the protection purpose of (i) engaging in, or assisting any person or entity in engaging in, the Company and its Subsidiaries. The Executive further acknowledges and agrees Business, or (xii) the Executive’s breach of the provisions of this Section 5 will cause the Company irreparable harmsoliciting or encouraging any customer, 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 client of the Company’s eventual success on the merits and (z) if the Executive breaches , or threatens its subsidiaries to breach the provisions of this Section 5 and terminate or otherwise alter his, hers or its relationship or prospective relationship with the Company (by vote or its subsidiaries.
d) In the event of a majority of the members of the Board) seeks an injunction against the Executivebreach, a balancing of equities will be in favor of the Company. The Executive consents and agrees that if the Executive commits any such violation or attempted breach or threatens to commit any breach, the Company (by vote violation 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 unenforceable17, the Executive Company shall be entitled to an injunction or restraining order immediately upon the commencement of any suit therefor by the Company and without notice. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedy available to it for any such breach of violation for the recovery of damages, including punitive damages by reason thereof.
e) The necessity of protection against the competition of the Representative and the nature and scope of such protection has been carefully considered by the parties hereto. The parties hereby agrees agree and acknowledge that this Agreement or any provision hereof may be reformed so that it is enforceable the duration, scope and geographic area applicable to the maximum extent permitted by law. If any of the provisions of restrictions set forth in this Section 5 17 are determined fair, reasonable and necessary. The consideration provided for herein is sufficient and adequate to be wholly or partially unenforceable compensate for agreeing to the restrictions contained in this Section 17. If, however, any jurisdictioncourt determines that the foregoing restrictions are not reasonable, such determination restrictions shall not be a bar modified, rewritten or interpreted to or in any way diminish the Company’s right to enforce any such covenant in any other jurisdictioninclude as much of their nature and scope as will render them enforceable.
Appears in 1 contract
Sources: Sales Representative Agreement (Wells Gardner Electronics Corp)
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 two years following the termination of this Agreement, the Employee shall not directly or indirectly (other than on behalf of indirectly:
a. 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, (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 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 but only with respect to markets where the Executive;
(b) solicit any Person who is or, Employee's duties within the prior twelve (12) months, wasmonth period ending on the date of Employee's termination included direct or indirect responsibility relating to such market, or whose Affiliate is (ii) compete with the Company or any of its subsidiaries or affiliates in acquiring or merging with any other business or acquiring the assets of such other business; or
b. for any reason, within the prior twelve (12i) 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
Sources: Executive Employment Agreement (Republic 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 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 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 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
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 one (1) year 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 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
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
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, ▇▇▇▇▇-▇▇▇▇▇▇, Carlsberg A/S, Heineken NV, PernodRicard or SAB ▇▇▇▇▇▇. 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
Sources: Service Agreement (Diageo PLC)
Restrictive Covenants. The Executive agrees (a) For a period of five (5) years commencing on the Closing Date, Seller shall not directly or indirectly:
(i) engage in the Business in the United States; or
(ii) invest in, share in the earnings of, or beneficially own or hold any security issued by, or otherwise own or hold any interest in any entity which is engaged in the Business in the United States; provided, however, that he Seller and its Affiliates may own, solely as an investment, securities of an entity that is engaged in the Business in the United States if (A) Seller is not an Affiliate of the issuer of such securities, and (B) Seller does not, directly or she indirectly, beneficially own more than five percent (5%) in the aggregate of such class of securities.
(b) For a period of five (5) years commencing on the Closing Date, Seller shall not, during the Non-Compete Period, directly or indirectly (other than on behalf of or at the request indirectly, solicit any Person who was an employee of the Company on the Closing Date (each a “Restricted Employee”), or encourage any such Restricted Employee to leave such employment or hire any Key Employee who has left such employment; provided, however, that (i) Seller and its Affiliates may (A) conduct general searches for employees or independent contractors by use of advertisements or other media that are not directly targeted at the Restricted Employees, and (B) engage any recruiting firm or similar Third-Party organization to identify or solicit persons for employee or independent contractor positions on Seller’s or its Subsidiaries):
(a) engage inAffiliates’ behalf, have an interest in, which may result in the solicitation and hiring of any such Restricted Employees who respond to such general searches or otherwise be employed are identified 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 such recruiting firm or organization, engaged as long as such recruiting firm or organization is not instructed to specifically target or contact any such Restricted Employees, and (ii) nothing in a business that is competitive with a business in which the Company this Section 6.5(b) shall prevent Seller or any of its Subsidiaries engages Affiliates from hiring (a “Competitive Business”); provided, that ownership of less than one percent (1%A) 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 employee whose employment has been terminated without cause by the Company, Buyer, or any of its Affiliates, (B) after one hundred eighty (180) days from the provisions date of this Section 5(atermination of employment, any employee whose employment with the Company has been terminated by the employee (including a resignation by employee), or (C) ▇▇▇▇▇ has consented to the solicitation or hiring of such individual in writing.
(c) The Assignment shall be deemed waived include a partial assignment of the Intellectual Property, Confidential Information and Non-Solicitation Agreements signed by any Continuing Employees 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)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 1 contract
Sources: Membership Interest Purchase Agreement (Arcosa, Inc.)
Restrictive Covenants. (a) The Executive agrees Employee acknowledges and recognizes that during the Employment Period he 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 8(b)(i), if any), without the prior written consent of the Corporation, the Employee shall not, at any time during the employer/employee relationship between the Corporation and the Employee and for the one-year period after the termination of such employer/employee relationship, (i) directly or indirectly engage in, represent in any way, or be connected with, any Competing Business directly competing with the business of the Corporation or any direct or indirect subsidiary or affiliate thereof within the state in which the Employee is employed or any other state of the United States or any country other than the United States in which the Corporation is doing business, whether such engagement shall be as an officer, director, owner, employee, partner, affiliate or other participant in any Competing Business, (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 any direct or indirect subsidiary or affiliate thereof to terminate their employment with the Corporation 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 sale of products 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) the business of the Corporation or any direct or indirect subsidiary thereof, (B) any of the products manufactured, sold or distributed by the Corporation or any direct or indirect subsidiary thereof or (C) any products or business being developed or conducted by the Corporation or any direct or indirect subsidiary thereof.
(b) The Employee understands that the foregoing restrictions may limit his ability to earn a livelihood in a business similar to the business of the Corporation or any subsidiary or affiliate thereof, but he or she nevertheless believes that he or she shall not, during the Non-Compete Period, directly or indirectly (has received and will receive sufficient consideration and 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 benefits as an employee during of the immediately preceding twelve Corporation and as otherwise provided hereunder to justify clearly such restrictions which, in any event (12) months or attempt to persuade any Person given his education, skills and ability), the Employee does not to continue to be employed or retained by the Company or its Affiliates or to terminate his believe would prevent him or her employment or services with the Company or its Affiliates; provided, that notwithstanding the foregoing, general solicitations of employment published in from earning 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)living.
(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
Restrictive Covenants. The Executive (a) In consideration of the foregoing, the Employee agrees that he or she shall not, during the Non-Compete PeriodTerm and for a period of two (2) years following termination of the Term for any or no reason, whether any such termination is voluntary or involuntary, the Employee shall not directly or indirectly (other than indirectly, on his/her own behalf or on behalf of or at the request of the Company or its Subsidiaries):others:
(ai) 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, employee, consultant, advisoragent, independent contractor, or representative)security holder of any company, provide consulting entity or management services business, in the same or similar capacity to that which s/he occupied while in the Company’s employ, compete with the Company by engaging in, or financing, or providing financial assistance with respect to, or permit his otherwise participating or her name to be used being involved in connection with the activities of, any business or organization, engaged in a business activity that is competitive with a business the same as or similar to, or that is otherwise directly or indirectly in which competition with, the Protected Business (as herein defined) conducted by the Company or any of its Subsidiaries engages the other Employer Companies (a “Competitive Business”as herein defined) anywhere in the Restricted Territory (as herein defined); provided, however, that the beneficial ownership of less than one two percent (12%) 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;
(bii) solicit any Person who is or(A) induce, within the prior twelve (12) months, wasencourage, or whose Affiliate is orattempt to influence any Customer, within the prior twelve (12) months, was a customer franchisee or licensee of the Company or any of its Subsidiaries the other Employer Companies to purchase products or persuade services which are the same or attempt substantially similar to persuade those offered by the Company to the Customer, franchisee, or licensee from any business that is directly or indirectly in competition with the Protected Business conducted by the Company or any of the other Employer Companies; (B) canvass, solicit or accept from any person or entity which is a Customer, franchisee or licensee of the Protected Business conducted by the Company or any of the other Employer Companies, any such Person not competitive business anywhere in the Restricted Territory; or (C) request or advise any Customer, supplier, franchisee or licensee of the Protected Business conducted by the Company or any of the other Employer Companies to be a customer withdraw, curtail or cancel any such Customer’s, franchisee’s or licensee’s business with the Company or any of the Employer Companies; and/or
(iii) employ or engage any person or entity who is then employed or engaged by the Company or any of the other Employer Companies, or in any manner seek to induce any employee or independent contractor of the Company or any of its Subsidiaries or the other Employer Companies to reduce the amount of business that such customer does with the Company or any of its Subsidiariesleave its, 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)engagement.
(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
Restrictive Covenants. The Executive agrees that he (a) Seller shall not (and shall cause its Affiliates to not), for a period of three years after the Closing (the “Restricted Period”), own, manage, participate or she shall not, during the Non-Compete Periodengage, directly or indirectly (other than on behalf of whether as principal, agent, distributor, representative, stockholder or at the request of the Company or its Subsidiaries):
(a) engage otherwise), 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 any facilities-based operations that directly compete with the activities ofBusiness in the Territory (any such business, 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”). Notwithstanding the foregoing, the restrictions contained in this Section 5.29(a) shall not prohibit or restrict Seller or any of its Affiliates from (i) engaging in any transaction or series of related transactions with any Person or business that results in Seller acquiring, or being acquired by, such other Person or business, or any other combination of Seller with such other Person or business (in each case, whether by way of merger, consolidation or otherwise); providedprovided that, that ownership at the time of less entering such transaction, no more than one fifty percent (150%) of the outstanding stock gross revenues of such other Person (and its Affiliates) or business are derived from a Competitive Business; (ii) selling all or substantially all of the assets of Seller and its Subsidiaries (taken as a whole); (iii) acquiring or investing in any equity interest in any Person by any bona fide employee benefit plan of Seller or its Affiliates; or (iv) performing any of its obligations under any of the Transaction Agreements.
(b) During the Restricted Period, Seller shall not (and shall cause its Affiliates not to), whether directly or indirectly, whether for itself or for or on behalf of any publicly traded corporation of its Affiliates, solicit (or permit to be directly or indirectly solicited) or employ or otherwise seek to employ any Transferred Employee, in each case, whether as an employee or consultant; provided, however, that the foregoing restrictions on solicitation shall not preclude (i) any generalized searches by use of advertising or recruiting efforts (including the use of search firms) which are not specifically targeted at Purchaser or any of its Affiliates or a Transferred Employee (including any Company after the Closing) and that are not specifically targeted at employees in the Territory (it being understood that a solicitation that targets states both within the Territory and outside of the Territory shall not be deemed prohibited by this Section 5.29(b)) or (ii) the hiring of any Transferred Employee who (A) was terminated without cause by Purchaser or any of its Affiliates (including the Companies) at least six (6) months prior to commencement of employment discussions between Seller or its Affiliates and such Person or (B) responds to any generalized search or recruiting efforts described in clause (i) above.
(c) During the Restricted Period, Purchaser shall not (and shall cause its Affiliates not to), whether directly or indirectly, whether for itself or for or on behalf of any of its Affiliates, solicit (or permit to be a violation of this Section 5 solely by reason thereofdirectly or indirectly solicited) or employ or otherwise seek to employ any Transition Team Member or other Retained Employee, in each case, whether as an employee or consultant; provided, furtherhowever, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative that the foregoing restrictions on solicitation shall not be deemed preclude (i) any generalized searches by use of advertising or recruiting efforts (including the use of search firms) which are not specifically targeted at Seller or any of its Affiliates (including, prior to be a violation the Closing, the Companies) or (ii) the hiring of any Transition Team Member or other Retained Employee who (A) was terminated without cause by Seller or any of its Affiliates (including, prior to the Closing, the Companies) at least six (6) months prior to commencement of employment discussions between Purchaser or its Affiliates and such Person or (B) responds to any generalized search or recruiting efforts described in clause (i) above.
(d) The parties hereto acknowledge that the restrictions contained in this Section 5 solely by reason thereof so long as providing such services 5.29 are reasonable in scope and duration, and it is not the primary duties or business activities desire and intent of such individual; provided, further, that, if the Board determines parties hereto that the provisions of this Section 5(a) should not apply 5.29 be enforced to the Executive following the termination of the Executive’s employment by the Company, the provisions fullest extent permissible under applicable Law. If any provision of this Section 5(a) shall be deemed waived with respect to the Executive;
(b) solicit any Person who 5.29 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 held to be a customer of the Company excessively broad as to duration, scope, activity or any of its Subsidiaries or to reduce the amount of business that subject, 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 provision will be construed by the Company or its Affiliates limiting and reducing it so 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 jurisdictionpermissible under applicable Law.
Appears in 1 contract
Restrictive Covenants. The Executive agrees (a) Each of the Non-Voting Shareholders agree that he or she shall not, during the Non-Compete PeriodVoting Shareholder's employment and for a period of three (3) years after the termination of his employment for any reason whatsoever or for no reason, directly whether voluntary or indirectly (other than involuntary, the Non-Voting Shareholder will not, except on behalf of the Corporation:
(i) directly or at the request indirectly, contact, solicit or direct any person, firm or corporation to contact or solicit any of the Company Corporation's customers or prospective customers (as hereinafter defined) for the purpose of selling or attempting to sell, any products and/or services that are the same as or similar to the products and services provided by the Corporation to its Subsidiaries):customers. In addition, each Non-Voting Shareholder will not disclose the identity of any such customers or prospective customers to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever; and
(aii) engage indirectly or indirectly, 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 investor (a “Competitive Business”); provided, that ownership of excluding investments representing less than one percent (1%) of the outstanding common stock of any publicly traded corporation shall not be deemed to be a violation of this Section 5 solely by reason thereof; providedpublic company), furtherlender, thatowner, providing investment banking or legal services to a Competitive Business as an independent stockholder, officer, director, consultant, independent advisor employee, agent, salesperson or independent representative shall not be deemed to be a violation in any other capacity, whether part-time or full-time, become associated with any business involved in the design, manufacture, marketing, sale, or servicing of this Section 5 solely by reason thereof so long as providing such services is not the primary duties products then constituting one percent (1%) 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 more of the Executive’s employment by annual sales of the CompanyCorporation; and
(iii) solicit or accept if offered to him, with or without solicitation, on his own behalf or on behalf of any other person, the provisions services of this Section 5(aany person who is an employee of the Corporation, nor solicit any of the Corporation's employees to terminate employment with the Corporation; and
(iv) shall be deemed waived act as a consultant, advisor, officer, manager, agent, director, partner, independent contractor, owner, or employee for or on behalf of any of the Corporation's customers or prospective customers (as hereinafter defined), with respect to or with regard to any aspect of the Executive;Corporation's business and/or any other business activities in which the Corporation engages during the term of the Non-Voting Shareholder's employment with the Corporation.
(b) solicit As used herein, "customer" shall be defined as any Person who person, firm or entity that purchased any type of product and/or service from the Corporation or is or, or was doing business with the Corporation within the prior twelve (12) monthsmonth period immediately preceding termination of the Non-Voting Shareholder's employment; and "prospective customer" shall be defined as any person, was, firm or whose Affiliate is or, entity contacted or solicited by the Corporation or the Non-Voting Shareholder (whether directly or indirectly) or who contacted the Corporation or the Non- Voting Shareholder (whether directly or indirectly) within the prior twelve (12) monthsmonth period immediately preceding termination of the Non-Voting Shareholder's employment for the purpose of having such persons, was firms, or entities become 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)Corporation.
(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
Sources: Stock Restriction and Buy Sell Agreement (Gsi 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 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 During Dr. Kunayev’s employment with the activities ofCompany and, if he receives severance benefits under Sections 5 or 6 of this Agreement, for a period of two (2) years thereafter:
(i) he shall not directly for himself or any third party, become engaged in 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 within the Republic of Kazakhstan; provided, however, that ownership of less than one percent this provision shall not restrict Dr. Kunayev from owning or investing in an institution (1%including venture, partnership, or entity) so long as his aggregate holdings in any such institution do not exceed 49% of the outstanding capital stock of any publicly traded corporation shall not be deemed to be a violation such institution. The restrictions 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 9 (i) 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 Dr. Kunayev’s shareholding interest with 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;Kazakhstan registered company JSC KazakhstanCaspiShelf.
(bii) he 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, 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
(iii) he shall not, directly for himself 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 engage) with, to the Executive’s knowledge, any such Person; oraffiliates.
(cb) contactDr. Kunayev agrees that he will not, 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 while 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; providedat any time thereafter for any reason, that notwithstanding 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, general solicitations of employment published in a journal, newspaper any customer lists or other publication of general circulation and not specifically directed towards such employeescustomer identifying information, consultants the techniques, methods 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 systems of the Mexican Subsidiaries Company’s operation or management, any information regarding its financial matters, or any other material information concerning the business of the Company engagesCompany, its manner of operation, its plan or other material data. 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 can9(b) shall not be adequately compensated apply to (i) information that is public knowledge other than as a result of disclosure by money damages, (y) if the Executive breaches or threatens to Dr. Kunayev in breach the provisions of this Section 5 and 9(b), (ii) information disseminated by the Company to third parties in the ordinary course of business, (iii) information lawfully received by vote of Dr. Kunayev from a majority of the members of the Board) seeks an injunction against the Executivethird party who, there based upon inquiry by him, is not bound by a reasonable probability of confidential relationship to the Company’s eventual success on the merits and , or (ziv) if the Executive breaches information disclosed under a requirement of law or threatens to breach the provisions of this Section 5 and the Company (as directed 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 jurisdictionapplicable legal authority having jurisdiction over Dr. Kunayev.
Appears in 1 contract
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 (y) 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 1 contract
Restrictive Covenants. The Executive agrees (a) Non-Competition and Non-Solicitation. Company and Principal Shareholder agree that he or she shall not, during the Non-Compete Periodperiod commencing on the date hereof and continuing through the date that is five (5) years after the Closing Date, neither they nor any of their Restricted Parties (as defined below), shall, directly or indirectly (other than on behalf of or at the request of the Company or its Subsidiaries):
(aA) engage in(including as a director, have an interest in, or otherwise be employed by (whether as an owner, operator, partner, member, managerofficer, employee, investor, lender, consultant or in any other capacity with respect to an entity that engages in whole or in part) in the registration, development, importation, manufacture, marketing, sale or distribution of vaccines, adjuvants, cell lines, master seeds or any components of the foregoing products (or any related products), or any product that is, or if registered or approved would be, competitive with, or a substitute for, any of the Products, anywhere in the world (assuming registered or approved in such jurisdiction, if required), (B) except as disclosed in Schedule 12.16, hire, including as a director, officer, employee, investor, lender, consultant or in any other capacity, any then-current employee of Company as of the Closing Date other than such employees whose employment with Purchaser has been terminated by Purchaser for reasons other than the conduct of the employee consisting of improper performance or nonperformance of the employee’s duties and responsibilities, engaging in willful misconduct including fraud or misrepresentation, conviction of a felony or misdemeanor (other than traffic violations), repetitive drunkenness or drug abuse, or violation of Company policies or the code of conduct, (C) induce or attempt to induce, any director, consultantofficer, advisoremployee, representative 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 agent of Purchaser or any of its Subsidiaries engages Affiliates engaged in the manufacture, storage, distribution or sale of the Products to leave the employ of Purchaser or any such Affiliate, or violate the terms of their contracts, or any employment arrangements, with Purchaser or any such Affiliate, or (a “Competitive Business”)D) solicit or divert or attempt to solicit or divert any current or former customer, supplier or employee of the Business anywhere in the world; 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 subsection (a) for such Person 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 Restricted Party of such individual; provided, further, that, if the Board determines that the provisions of this Section 5(aPerson to invest in securities having less than five percent (5%) should not apply to the Executive following the termination of the Executive’s employment by the Companyoutstanding voting power of any Person, the provisions securities 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, which are publicly traded 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 listed 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 jurisdictionany
Appears in 1 contract
Sources: Asset Purchase Agreement
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 (i) 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 thereof; provided, further, that, providing investment banking or legal services to a Competitive Business as an independent consultant, independent advisor or independent representative and (ii) Employee’s involvement with HPSC shall not be deemed to be a violation of violate this Section 5 solely by reason thereof Agreement so long as providing such services HPSC is not the primary duties or engaged in a 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 competitive with 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 7 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 7 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 1 contract
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 and for a period of one (1) year thereafter (the “Restricted Period”), 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 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)entitled under applicable law.
(db) Notwithstanding anything to the contrary in this Section Agreement, Executive may: directly or indirectly, (A) 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 or (B) serve as a member of the board of any entity if approved by the Company prior or after the date hereof, with respect which consent shall not be unreasonably withheld or delayed.
(c) During the Restricted Period, 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 Restricted Period, because of the inseparability of Confidential Information from the customer relationships with which Executive has been entrusted as part of his 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 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 1 contract
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
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