Page 9 of 10
(d) Non-Competition and Non-Solicitation.
(i) During the Employment Period and the applicable Post-Employment Restricted Period (collectively, the “Restricted Period”), the Executive shall not engage or participate, directly or indirectly, as principal, agent, executive, director, manager, officer, proprietor, joint venturer, trustee, employee, employer, consultant, stockholder, equityholder, partner or in any other capacity whatsoever, in the conduct or management of, or fund, invest in, lend to, own any stock or any other equity or debt investment in, or provide any services of any nature whatsoever to or in respect of, any business that is competitive with or in the same line of business as the Business (as hereinafter defined) within the Restricted Territory (as hereinafter defined), provided that nothing herein shall prevent the Executive from making, or continuing any existing or future, passive investments of less than two percent (2%) of the outstanding stock of any publicly-traded company. For purposes of this Appendix A: (A) “Business” means all activities conducted or in planning by Company Parties or any of their subsidiaries during the Employment Period; and (B) “Restricted Territory” means the United States of America.
(ii) During the Restricted Period, the Executive shall not, directly or indirectly, for the benefit of the Executive or for the benefit of any Person other than any Company Party, (A) solicit, or assist any Person to solicit, any officer, director, manager, executive, employee or consultant of any Company Party or any of their respective affiliates to leave his employment, (B) hire or cause to be hired any Person who is then, or who will have been at any point in time during the Restricted Period, an officer, director, manager, executive, employee or consultant of any Company Party or any of their respective affiliates, or (C) engage or cause to be engaged any Person who is then, or who will have been at any point in time during the Restricted Period, an officer, manager, director, executive, employee or consultant of any Company Party or any of their respective affiliates as a partner, contractor, sub-contractor or consultant.
(iii) During the Restricted Period, the Executive will not, directly or indirectly (A) solicit, or assist any Person to solicit, any Person that is an existing or potential client, customer or supplier of any Company Party or any of their respective affiliates, or has been a client, customer or supplier of any Company Party or any of their respective affiliates during the prior twelve (12) months, to provide any products and/or services competitive with those provided by any Company Party or (B) interfere with any of the business relationships of any Company Party or any of their respective affiliates with any potential client, customer or supplier or any client, customer, or suppler that has transacted business with the Company Party within the prior twelve (12) months. Following the Employment Period, Executive agrees and covenants that Executive shall not use the trade secrets or Confidential Information of any Company Party or any of their respective affiliates to directly or indirectly solicit the clients, customers or suppliers of any Company Party or any of their respective affiliates, or to interrupt, disturb or interfere with the relationships of any Company Party or any of their respective affiliates with their clients, customers or suppliers, including potential client, customers and suppliers and those clients, customers and suppliers with whom the Company Party has transacted business within the prior twelve (12) months. For purposes of this paragraph, a “potential client, customer or supplier” is one to whom a Company Party has made a proposal within the prior six (6) months to engage in business together.
(e) The Executive acknowledges that the above covenants are manifestly reasonable on their face, and the parties expressly agree that such restrictions are reasonably necessary for the protection of the Company Parties’ legitimate business interests and are a significant element of the consideration hereunder.
(f) If the final judgment of a court of competent jurisdiction declares that any term or provision of this Appendix A is invalid or unenforceable, the parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Appendix A shall be enforceable as so modified to cover the maximum duration, scope or area permitted by law.