Covenant Not to Compete Clause Example with 5 Variations from Business Contracts
This page contains Covenant Not to Compete clauses in business contracts and legal agreements. An example clause is provided at the top of the page, followed by clauses with minor variations. You can view the text differences by selecting the "Show Differences" option.
Covenant Not to Compete. The Executive hereby understands and acknowledges that, by virtue of his position with the Company and the Bank, he has obtained advantageous familiarity and personal contacts with Customers and Prospective Customers, wherever located, and the business, operations, and affairs of the Company and the Bank. Accordingly, except as set forth in subparagraph (b) of this Section 15, during the term of this Agreement and for a period of twelve (12) months following the termination of his employment wit...h the Company and the Bank ("Restriction Period") other than a termination of the Executive's employment with the Company and the Bank following a Change in Control or the involuntary termination of Executive's employment by the Bank or the Company, the Executive shall not, directly or indirectly, except as agreed to by duly adopted resolution of the Bank Board: 13 (a) as owner, officer, director, stockholder, investor, proprietor, organizer, employee, agent, representative, consultant, independent contractor, or otherwise, engage in the same trade or business as the Company's Business, in the same or similar capacity as the Executive worked for the Company and the Bank, or in such capacity as would cause the actual or threatened use of the Company's or the Bank's trade secrets and/or Confidential Information; provided, however, that this subsection (a) shall not restrict the Executive from acquiring, as a passive investment, less than five percent (5%) of the outstanding securities of any class of an entity that are listed on a national securities exchange or actively traded in the over-the-counter market. The Executive acknowledges and agrees that, given the level of trust and responsibility given to him while in the Company's and the Bank's employ, and the level and depth of trade secrets and Confidential Information entrusted to him, any immediately subsequent employment with a competitor to the Company's Business would result in the inevitable use or disclosure of the Company's and the Bank's trade secrets and Confidential Information and, therefore, the duration of this year restriction is reasonable and necessary to protect against such inevitable disclosure; or (b) offer to provide employment or work of any kind (whether such employment is with the Executive or any other business or enterprise), either on a full-time or part-time or consulting basis, to any person who then currently is an employee of the Company or the Bank. The restrictions on the activities of the Executive contained in this Section 15 shall be limited to the following geographical areas: all counties in which Company or the Bank or any other affiliate of the Company maintains an office or branch or has filed an application for regulatory approval to establish an office or branch as of date of termination, except as agreed otherwise by the Bank Board.View More
Variations of a "Covenant Not to Compete" Clause from Business Contracts
Covenant Not to Compete. The Executive hereby understands and acknowledges that, by virtue of his his/her position with the Company and the Bank, he Employing Companies, he/she has obtained advantageous familiarity and personal contacts with Customers and Prospective Customers, wherever located, and the business, operations, and affairs of the Company and the Bank. Employer. Accordingly, except as set forth in subparagraph (b) of this Section 15, during the term of this Agreement and for a period of twelve (12) months t...wo (2) years following the termination of his employment with the Company and the Bank ("Restriction Period") other than a termination of the Executive's employment with the Company and the Bank following a Change in Control or the involuntary termination of Executive's employment by the Bank or the Company, his/her employment, the Executive shall not, directly or indirectly, except as agreed to by duly adopted resolution of the Bank Board: 13 (a) as indirectly: (a)as owner, officer, director, stockholder, investor, proprietor, organizer, employee, agent, representative, consultant, independent contractor, or otherwise, engage in the same trade or business as the Company's Business, in the same or similar capacity as the Executive worked for the Company and the Bank, Employing Companies, or in such capacity as would cause the actual or threatened use of the Company's or the Bank's Employer's trade secrets and/or Confidential Information; provided, however, that this subsection (a) Subsection shall not restrict the Executive from acquiring, as a passive investment, less than five percent (5%) of the outstanding securities of any class of an entity that are listed on a national securities exchange or actively traded in the over-the-counter market. The Executive acknowledges and agrees that, given the level of trust and responsibility given to him him/her while in the Company's and the Bank's Employing Companies' employ, and the level and depth of trade secrets and Confidential Page 9 Information entrusted to him, him/her, any immediately subsequent (i.e. within two (2) years) employment with a competitor to the Company's Business would result in the inevitable use or disclosure of the Company's and the Bank's Employer's trade secrets and Confidential Information and, therefore, the duration of this two (2) year restriction is reasonable and necessary to protect against such inevitable disclosure; or (b) offer (b)offer to provide employment or work of any kind (whether such employment is with the Executive or any other business or enterprise), either on a full-time or part-time or consulting basis, to any person who then currently is is, or who within two (2) years preceding such offer or provision of employment has been, an employee of the Company or the Bank. Employer. The restrictions on the activities of the Executive contained in this Section 15 shall be limited to the following geographical areas: all counties (c)within a fifteen (15) mile radius of each banking center location operated by the Employer on the Executive's Termination Date; (d)within each county in which a banking center location is operated by the Employer on the Executive's Termination Date; (e)within a fifty (50) mile radius of Company's corporate headquarters address in Evansville, Indiana; (f)within each city, town, and county in which the Employer began expansion or acquisition planning or efforts during the Executive's employment with the Employing Companies, and about which Executive gained knowledge of Confidential Information or bore responsibility for expanding the Company's Business; 17.Remedies. The Executive agrees that the Company will suffer irreparable damage and injury and will not have an adequate remedy at law if the Executive breaches any provision of the Restrictive Covenants. Accordingly, if the Executive breaches or threatens or attempts to breach the Bank Restrictive Covenants, in addition to all other available remedies, the Company shall be entitled to seek injunctive relief, and no or minimal bond or other security shall be required in connection therewith. The Executive acknowledges and agrees that in the event of termination of this Agreement for any reason whatsoever, the Executive can obtain employment not competitive with the Company's Business (or, if competitive, outside of the geographic and customer-specific scope described herein) and that the issuance of an injunction to enforce the provisions of the Restrictive Covenants shall not prevent the Executive from earning a livelihood. The Restrictive Covenants are essential terms and conditions to the Company entering into this Agreement, and they shall be construed as independent of any other affiliate provision in this Agreement or of any other agreement between the Executive and the Company. The existence of any claim or cause of action that the Executive has against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the Company maintains an office or branch or has filed an application for regulatory approval to establish an office or branch as of date of termination, except as agreed otherwise by the Bank Board. Restrictive Covenants. View More
Covenant Not to Compete. The Executive hereby understands and acknowledges that, by virtue of his position with the Company and the Bank, Company, he has obtained advantageous familiarity and personal contacts with Customers and Prospective Customers, wherever located, and the business, operations, and affairs of the Company and the Bank. Company. Accordingly, except as set forth in subparagraph (b) of this Section 15, during the term of this Agreement and for a period of twelve (12) months one (1) year following the te...rmination of his employment with the Company and the Bank ("Restriction Period") other than a termination of the Executive's employment with the Company and the Bank following a Change in Control or the involuntary termination of Executive's employment by the Bank or the Company, employment, the Executive shall not, directly or indirectly, except as agreed to by duly adopted resolution of the Bank Board: 13 indirectly: (a) as owner, officer, director, stockholder, investor, proprietor, organizer, employee, agent, representative, consultant, independent contractor, or otherwise, engage in the same trade or business as the Company's Business, in the same or similar capacity as the Executive worked for the Company and the Bank, Company, or in such capacity as would cause the actual or threatened use of the Company's or the Bank's trade secrets and/or Confidential Information; provided, however, that this subsection (a) Subsection shall not restrict the Executive from acquiring, as a passive investment, less than five percent (5%) of the outstanding securities of any class of an entity that are listed on a national securities exchange or actively traded in the over-the-counter market. The Executive acknowledges and agrees that, given the level of trust and responsibility given to him while in the Company's and the Bank's employ, and the level and depth of trade secrets and Confidential Information entrusted to him, any immediately subsequent employment with a competitor to the Company's Business would result in the inevitable use or disclosure of the Company's and the Bank's trade secrets and Confidential Information and, therefore, the duration of this one (1) year restriction is reasonable and necessary to protect against such inevitable disclosure; or (b) offer to provide employment or work of any kind (whether such employment is with the Executive or any other business or enterprise), either on a full-time or part-time or consulting basis, to any person who then currently is an employee of the Company or the Bank. Company. The restrictions on the activities of the Executive contained in this Section 15 shall be limited to the following geographical areas: all counties (i) within a ten (10) mile radius of each banking center location operated by the Company on the Executive's Termination Date, (ii) within each county in which Company or a banking center location is operated by the Bank or any other affiliate Employer on the Executive's Termination Date, (iii) within a fifty (50) mile radius of Company's corporate headquarters address, and (iv) within each city, town, and county in which the Company maintains an office began expansion or branch acquisition planning or has filed an application for regulatory approval to establish an office or branch as efforts during the Executive's employment with the Company, and about which Executive gained knowledge of date of termination, except as agreed otherwise by the Bank Board. Confidential Information. View More
Covenant Not to Compete. The Executive hereby understands and acknowledges that, by virtue of his position with the Company Bancorp and the Bank, he has obtained advantageous familiarity and personal contacts with Customers and Prospective Customers, wherever located, and the business, operations, and affairs of the Company Bancorp and the Bank. Accordingly, during the term of this Agreement and, except as set forth provided in subparagraph (b) of this Section 15, during the term of this Agreement and for a period of tw...elve (12) months one (1) year following the termination of his employment with the Company Bancorp and the Bank (including but not limited to by reason of retirement) ("Restriction Period") Period"), other than a termination of the Executive's employment with the Company Bancorp and the Bank following a Change in Control or the involuntary termination of Executive's employment by the Bank or the Company, Control, the Executive shall not, directly or indirectly, except as agreed to by duly adopted resolution of the Bank Board: 13 (a) as owner, officer, director, stockholder, investor, proprietor, organizer, employee, agent, representative, consultant, independent contractor, or otherwise, engage in the same trade or business as the Company's Business, Bancorp and the Bank, in the same or similar capacity as the Executive worked for the Company Bancorp and the Bank, or in such capacity as would cause the actual or threatened use of the Company's Bancorp's or the Bank's trade secrets and/or Confidential Information; provided, however, that this subsection (a) shall not restrict the Executive from acquiring, as a passive investment, less than five percent (5%) of the outstanding securities of any class of an entity that are listed on a national securities exchange or actively traded in the over-the-counter market. The Executive acknowledges and agrees that, given the level of trust and responsibility given to him while in the Company's Bancorp's and the Bank's employ, and the level and depth of trade secrets and Confidential Information entrusted to him, any immediately subsequent employment with a competitor to the Company's Business would result in the inevitable use or disclosure of the Company's Bancorp's and the Bank's trade secrets and Confidential Information and, therefore, the duration of this year restriction is reasonable and necessary to protect against such inevitable disclosure; or (b) offer to provide employment or work of any kind (whether such employment is with the Executive or any other business or enterprise), either on a full-time or part-time or consulting basis, to any person who then currently is an employee of the Company or the Bank. Employer. The restrictions on the activities of the Executive contained in this Section 15 shall be limited to the following geographical areas: Bucks County, Pennsylvania, as well as Burlington, Camden and Gloucester Counties, New Jersey. 9 16. Remedies. The Executive agrees that the Bancorp and the Bank will suffer irreparable damage and injury and will not have an adequate remedy at law if the Executive breaches any provision of the restrictions contained in Sections 11, 12, 13, 14 and 15 (the "Restrictive Covenants"). Accordingly, if the Executive breaches or threatens or attempts to breach the Restrictive Covenants, in addition to all counties other available remedies, the Bancorp and the Bank shall be entitled to seek injunctive relief, and no or minimal bond or other security shall be required in which Company or connection therewith. The Executive acknowledges and agrees that in the event of termination of this Agreement for any reason whatsoever, the Executive can obtain employment not competitive with the business of the Bank or the Bancorp (or, if competitive, outside of the geographic and customer-specific scope described herein) and that the issuance of an injunction to enforce the provisions of the Restrictive Covenants shall not prevent the Executive from earning a livelihood. The Restrictive Covenants are essential terms and conditions to the Employer entering into this Agreement, and they shall be construed as independent of any other affiliate provision in this Agreement or of any other agreement between the Executive and the Employer. The existence of any claim or cause of action that the Executive has against the Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Employer of the Company maintains an office or branch or has filed an application for regulatory approval to establish an office or branch as of date of termination, except as agreed otherwise by the Bank Board. Restrictive Covenants. View More
Covenant Not to Compete. The Executive hereby understands and acknowledges that, by virtue of his her position with the Company Bancorp and the Bank, he has obtained advantageous familiarity and personal contacts with Customers and Prospective Customers, wherever located, and the business, operations, and affairs of the Company Bancorp and the Bank. Accordingly, during the term of this Agreement and, except as set forth provided in subparagraph (b) of this Section 15, during the term of this Agreement and for a period o...f twelve (12) months one (1) year following the termination of his her employment with the Company Bancorp and the Bank (including but not limited to by reason of retirement) ("Restriction Period") Period"), other than a termination of the Executive's employment with the Company Bancorp and the Bank following a Change in Control or the involuntary termination of Executive's employment by the Bank or the Company, Control, the Executive shall not, directly or indirectly, except as agreed to by duly adopted resolution of the Bank Board: 13 (a) as owner, officer, director, stockholder, investor, proprietor, organizer, employee, agent, representative, consultant, independent contractor, or otherwise, engage in the same trade or business as the Company's Business, Bancorp and the Bank, in the same or similar capacity as the Executive worked for the Company Bancorp and the Bank, or in such capacity as would cause the actual or threatened use of the Company's Bancorp's or the Bank's trade secrets and/or Confidential Information; provided, however, that this subsection (a) shall not restrict the Executive from acquiring, as a passive investment, less than five percent (5%) of the outstanding securities of any class of an entity that are listed on a national securities exchange or actively traded in the over-the-counter market. The Executive acknowledges and agrees that, given the level of trust and responsibility given to him while in the Company's Bancorp's and the Bank's employ, and the level and depth of trade secrets and Confidential Information entrusted to him, any immediately subsequent employment with a competitor to the Company's Business would result in the inevitable use or disclosure of the Company's Bancorp's and the Bank's trade secrets and Confidential Information and, therefore, the duration of this year restriction is reasonable and necessary to protect against such inevitable disclosure; or (b) offer to provide employment or work of any kind (whether such employment is with the Executive or any other business or enterprise), either on a full-time or part-time or consulting basis, to any person who then currently is an employee of the Company or the Bank. Employer. The restrictions on the activities of the Executive contained in this Section 15 shall be limited to the following geographical areas: all counties in which Company or the Bank or any other affiliate of the Company maintains an office or branch or has filed an application for regulatory approval to establish an office or branch Bucks County, Pennsylvania, as of date of termination, except well as agreed otherwise by the Bank Board. Burlington, Camden and Gloucester Counties, New Jersey. View More
Covenant Not to Compete. The Executive hereby understands and acknowledges that, by virtue of his position with the Company Bancorp and the Bank, he has obtained advantageous familiarity and personal contacts with Customers and Prospective Customers, wherever located, and the business, operations, and affairs of the Company Bancorp and the Bank. Accordingly, during the term of this Agreement and, except as set forth provided in subparagraph (b) of this Section 15, during the term of this Agreement and for a period of tw...elve (12) months one (1) year following the termination of his employment with the Company Bancorp and the Bank (including but not limited to by reason of retirement) ("Restriction Period") Period"), other than a termination of the Executive's employment with the Company Bancorp and the Bank following a Change in Control or the involuntary termination of Executive's employment by the Bank or the Company, Control, the Executive shall not, directly or indirectly, except as agreed to by duly adopted resolution of the Bank Board: 13 (a) as owner, officer, director, stockholder, investor, proprietor, organizer, employee, agent, representative, consultant, independent contractor, or otherwise, engage in the same trade or business as the Company's Business, Bancorp and the Bank, in the same or similar capacity as the Executive worked for the Company Bancorp and the Bank, or in such capacity as would cause the actual or threatened use of the Company's Bancorp's or the Bank's trade secrets and/or Confidential Information; provided, however, that this subsection (a) shall not restrict the Executive from acquiring, as a passive investment, less than five percent (5%) of the outstanding securities of any class of an entity that are listed on a national securities exchange or actively traded in the over-the-counter market. The Executive acknowledges and agrees that, given the level of trust and responsibility given to him while in the Company's Bancorp's and the Bank's employ, and the level and depth of trade secrets and Confidential Information entrusted to him, any immediately subsequent employment with a competitor to the Company's Business would result in the inevitable use or disclosure of the Company's Bancorp's and the Bank's trade secrets and Confidential Information and, therefore, the duration of this year restriction is reasonable and necessary to protect against such inevitable disclosure; or (b) offer to provide employment or work of any kind (whether such employment is with the Executive or any other business or enterprise), either on a full-time or part-time or consulting basis, to any person who then currently is an employee of the Company or the Bank. Employer. The restrictions on the activities of the Executive contained in this Section 15 shall be limited to the following geographical areas: all counties in which Company or the Bank or any other affiliate of the Company maintains an office or branch or has filed an application for regulatory approval to establish an office or branch Bucks County, Pennsylvania, as of date of termination, except well as agreed otherwise by the Bank Board. Burlington, Camden and Gloucester Counties, New Jersey. View More
