The Restrictive Covenants Clause Samples
The Restrictive Covenants clause sets out specific limitations on the actions of one or more parties, typically to protect the interests of the other party or the business as a whole. These restrictions often include non-compete, non-solicitation, and confidentiality obligations, which may prevent a party from working for competitors, soliciting clients or employees, or disclosing sensitive information for a defined period and within a certain geographic area. The core function of this clause is to safeguard proprietary information and business relationships, thereby reducing the risk of unfair competition or misuse of confidential data after the contractual relationship ends.
The Restrictive Covenants. In Section 2, the Company promised to provide Executive with new and on-going Confidential Information. Executive recognizes and agrees that: (i) the Company has devoted a considerable amount of time, effort, and expense to develop its Confidential Information and business goodwill; (ii) the Confidential Information and the Company’s business goodwill are valuable assets to the Company; and (iii) any unauthorized use or disclosure of the Company’s Confidential Information would cause irreparable harm to the Company for which there is no adequate remedy at law, including damage to the Company’s business goodwill. For these reasons, Executive agrees that to protect the Company’s Confidential Information and business goodwill, it is necessary to enter into the following restrictive covenants: Executive, either individually or as a principal, partner, stockholder, manager, agent, consultant, contractor, employee, lender, investor, volunteer or as a director or officer of any corporation or association, or in any other manner or capacity whatsoever, agrees that during Executive’s employment and for a period of one (1) year following the date on which Executive’s employment ceases (for whatever reason) (the “Non-Competition Period”), Executive shall not, whether directly or indirectly, without the express prior written consent of the Company:
The Restrictive Covenants. Each Member recognizes and agrees that: (i) the Applicable Entities have devoted a considerable amount of time, effort, and expense to develop their Confidential Information and business goodwill; (ii) the Confidential Information and the Company’s business goodwill are valuable assets to the Company; and (iii) any unauthorized use or disclosure of the Company’s Confidential Information would cause harm to the Company for which there is no adequate remedy at law, including damage to the Company’s business goodwill. Accordingly, and except as expressly provided otherwise herein, each Member agrees that to protect the Company’s Confidential Information and business goodwill, it is necessary to enter into the following restrictive covenants: The Member, individually and as a principal, partner, stockholder, manager, agent, consultant, contractor, employee, lender, investor, director and officer of any corporation or association, and in each and every other manner or capacity whatsoever, agrees that during the period in which the Member is a Member in the Company and two and one-half (21/2) years following the date on which the Member has ceased to hold Membership Interests in the Company for any reason (the “Non-Competition Period”), the Member shall not, whether directly or indirectly, without the Approval of the Members:
The Restrictive Covenants. In Section 7(a), the Company promised to provide Chairman with Confidential Information. Each Chairman recognizes and agrees that: (i) the Company has devoted a considerable amount of time, effort, and expense to develop its Confidential Information and business goodwill; (ii) the Confidential Information and the Company’s business goodwill are valuable assets to the Company; and (iii) any unauthorized use or disclosure of the Company’s Confidential Information would cause irreparable harm to the Company for which there is no adequate remedy at law, including damage to the Company’s business goodwill. Each Chairman also agrees and acknowledges that the Company is providing Chairman with a Confidential Information pursuant to this Agreement. For these reasons, and the additional consideration set forth in this Agreement, Chairman agrees that to protect the Company’s Confidential Information and business goodwill, it is necessary to enter into the following restrictive covenants. Except as otherwise set forth in this Section 7(c), Chairman, individually or as a principal, partner, stockholder, manager, agent, consultant, contractor, employee, lender, investor, or as a director or officer of any corporation or association, or in any other manner or capacity whatsoever, agrees that Chairman shall not, whether directly or indirectly, without the express approval of the Board:
The Restrictive Covenants. The Tax Credit Covenant;
The Restrictive Covenants. If PHS resorts to litigation to enforce any of the Restrictive Covenants which has a fixed term, then such term shall be extended for a period of time equal to the period of such breach, beginning on the date of a final court order (without further right of appeal) acknowledging the validity of such Restrictive Covenant or, if later, the last day of the original fixed term of the Restrictive Covenant.