Section 4 — Restrictive Covenants and Regulatory Prohibitions
4.1Agreement Not to Compete, Disparage, Solicit or Disclose Confidential Information. In consideration of continued employment of Executive and all other consideration set forth in this Agreement, Executive covenants and agrees as follows:
(a)After the termination of his employment (whether or not during the Contract Period or term of this Agreement) and for a period of two years thereafter, he will not
(i)directly or indirectly own, manage, operate, be employed by, participate in, or be connected in any manner with the ownership, management, operation or control of any business which sells or attempts to provide products or services in the financial services industry, whether banking or non-banking, with similar products or services to those provided by the Company or its Subsidiaries (including but not limited to financial tax products, small dollar lending, or payment systems including prepaid cards), in a state in which the Company or its Subsidiaries has a branch or physical presence or otherwise engages in business, or in any other state that Company or its Subsidiaries has committed significant resources toward entering during the term of Executive’s employment; or
(ii)solicit or attempt to solicit any business that directly or indirectly competes with the Bank’s main business lines as discussed in its prior year’s annual report or any financial tax products, small dollar lending, or payment systems including prepaid cards, from any of the Bank’s customers or clients, customer prospects, or vendors with whom Executive had contact during the last three years of his employment with the Company or Bank; or
(iii)directly or indirectly on his own behalf or on behalf of any person or legal entity, recruit, solicit, or induce, or attempt to recruit, solicit, or induce any Employee of the Company or its Subsidiaries with whom he has had personal contact or supervised while performing his job duties to terminate their relationship with the Company and its Subsidiaries.
(b)During the term of this Agreement and thereafter, Executive shall not (i) at any time, directly or indirectly, use or disclose to any persons, except Company or its Subsidiaries and their duly authorized directors and officers or other executives entitled thereto, trade secrets, confidential, proprietary, or other information acquired by Executive in the course of his employment in any capacity whatsoever; or (ii) disparage or speak ill of the Company or its Subsidiaries or any of its products, services, affiliates, Subsidiaries, officers, directors, or shareholders, and will take reasonable steps to prevent and will not knowingly permit any of his agents to, disparage or speak ill of such entities and persons. This paragraph shall not apply to the disclosure of such information by Executive pursuant to a duly-issued subpoena or other form from a court of competent jurisdiction or pursuant to an investigation, hearing, or other proceeding conducted under oath by an agency of the federal or state government, provided that he shall notify Company or its Subsidiaries before responding to same such that the Company or its Subsidiaries may have the opportunity to contest the disclosure demand.