Common use of Covenants Not to Solicit or Compete Clause in Contracts

Covenants Not to Solicit or Compete. Employee and the Company agree that the Company would be substantially harmed if Employee competes with the Company during or after termination of employment with the Company. Therefore, in consideration of the compensation and the benefits offered to him, Employee agrees that: (a) During Employee's employment with the Company and for a period of one (1) year thereafter, Employee will not, either directly or indirectly, whether alone or in concert with others, solicit or entice or in any way divert any customer or supplier to do business with any business entity in competition with the Company. (b) During Employee's employment with the Company, and for any period thereafter during which Employee receives severance benefits, Employee will not, either alone or with others, directly or indirectly, engage in any business enterprise in competition with the Company or otherwise plan or take any preliminary steps, either alone or in concert with others, to set up or engage in any competitive business enterprise. (c) During Employee's employment with the Company and for a period of one (1) year thereafter, Employee will not, directly or indirectly, alone or in concert with others, solicit any of the Company's employees for employment or other engagement by any other company which is, by any reasonable standard, in competition with the Company. Employee understands that the above limitations are necessary in order to reduce the risk that the Company's Confidential Information, including its Technology, will be disclosed to and used by its competitors to its detriment. Employee further understands and agrees that the Company's obligation to make any payments pursuant to Section 6 of this Agreement shall immediately and forever terminate upon any violation or failure to comply with this Section 12 by Employee.