Covenant Not to Compete Clause Example from Business Contracts

Covenant Not to Compete. (a) Executive hereby acknowledges and recognizes the highly competitive nature of the business of the Bank and the Corporation and accordingly agrees that, during and for the applicable period set forth in Section 8(c) hereof, Executive shall not, except as otherwise permitted in writing by the Bank and the Corporation: (i) be engaged, directly or indirectly, either for his own account or as agent, consultant, Executive, partner, officer, director, proprietor, investor (except as an investor own...ing less than 5% of the stock of a publicly owned company) or otherwise of any person, firm, corporation or enterprise engaged in or proposed to be engaged in (1) the banking (including bank and corporation holding company) or financial services industry, or (2) any other activity in which the Bank and the Corporation or any of their respective affiliates are engaged during the Employment Period, and remain so engaged at the end of the Employment Period, within a thirty-five (35) mile radius of a branch or other place of business of the Corporation or the Bank (the "Non-Competition Area"); or (ii) provide financial or other assistance to any person, firm, corporation or enterprise engaged in (1) the banking (including bank and corporation holding company) or financial services industry, or (2) any other activity in which the Bank and the Corporation or any of its affiliates are engaged during the Employment Period, in the Non-Competition Area; or (iii) directly or indirectly solicit persons or entities who were customers or referral sources of the Bank and the Corporation or their respective affiliates within one year of Executive's termination of employment, to a become customer or referral source of a person or entity other than the Bank and the Corporation or their respective affiliates; or (iv) directly or indirectly solicit any employee of the Bank and the Corporation or their respective affiliates who were employed within one year of Executive's termination of employment to work for anyone other than the Bank and the Corporation or their respective affiliates. 7 (b) It is expressly understood and agreed that, although Executive and the Bank and the Corporation consider the restrictions contained in Section 8(a) hereof reasonable for the purpose of preserving for the Bank and the Corporation and their respective subsidiaries their good will and other proprietary rights, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction contained in Section 8(a) hereof is an unreasonable or otherwise unenforceable restriction against Executive, the provisions of Section 8(a) hereof shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable. (c) The provisions of Section 8(a) shall be applicable commencing on the Effective Date and ending on the first anniversary of the effective date of termination of employment. View More