Common use of Noncompetition Obligations Clause in Contracts

Noncompetition Obligations. The Stockholder and the Company acknowledge that (i) the Company has developed goodwill, going concern value, customer and client relationships and confidential information that are valuable property rights of the Company and that the Stockholder will have access to and knowledge concerning such rights, which if used other than for the benefit of the Company could significantly injure the Company; and (ii) the Company is engaged the operation of telecommunication hubs and switching systems, transmission and switching of voice, data, audio, video and information via telephone, wireless and cable networks (the “Business”). Accordingly, and in consideration of the mutual promises contained herein, the Stockholder covenants that, during the period commencing on the Effective Date and terminating on the six-month anniversary of the date of termination of the Stockholder’s employment (the “Restrictive Period”), the Stockholder shall not, without the prior written consent of the Company, directly or indirectly, in the Stockholder’s individual capacity or on behalf of any other individual, partnership, corporation, limited liability company or any other entity (collectively “Person”), Compete with the Company or any of its respective successors or assigns. For purposes of this Section 6, “Compete” shall mean: (i) to engage in business activities identical or substantially similar to the Business as engaged in by the Company at any time during the one-year period preceding the date of termination of the Stockholder’s employment (a “Competitive Business”) hereunder within the geographic limits of those standard xxxxxxxxxxxx xxxxxxxxxxx xxxxx xx xxx Xxxxxx Xxxxxx within which the Company has engaged in the Business during the one-year period preceding the date of termination of the Stockholder’s employment (the “Territory”); (ii) to assist any Person (whether in a financial, managerial, employment, advisory or other capacity or as a stockholder or owner, or by the provision of information) to engage in a Competitive Business within the Territory; or (iii) to own any interest in or to organize a corporation, partnership or other business or organization which engages in a Competing Business within the Territory.

Noncompetition Obligations. The Stockholder and the Company acknowledge that (i) the Company has developed goodwill, going concern value, customer and client relationships and confidential information that are valuable property rights of the Company and that the Stockholder will have access to and knowledge concerning such rights, which if used other than for the benefit of the Company could significantly injure the Company; and (ii) the Company is engaged the operation of telecommunication hubs and switching systems, transmission and switching of voice, data, audio, video and information via telephone, wireless and cable networks (the “Business”). Accordingly, and in consideration of the mutual promises contained herein, the Stockholder covenants that, during the period commencing on the Effective Date and terminating on the six-month anniversary of the date of termination of the Stockholder’s employment Business Relationship with the Company (the “Restrictive Period”), the Stockholder shall not, without the prior written consent of the Company, directly or indirectly, in the Stockholder’s individual capacity or on behalf of any other individual, partnership, corporation, limited liability company or any other entity (collectively “Person”), Compete with the Company or any of its respective successors or assigns. For purposes of this Section 6, “Compete” shall mean: (i) to engage in business activities identical or substantially similar to the Business as engaged in by the Company at any time during the one-year period preceding the date of termination of the Stockholder’s employment Business Relationship with the Company (a “Competitive Business”) hereunder within the geographic limits of those standard xxxxxxxxxxxx xxxxxxxxxxx xxxxx xx xxx Xxxxxx Xxxxxx within which the Company has engaged in the Business during the one-year period preceding the date of termination of the Stockholder’s employment Business Relationship with the Company (the “Territory”); (ii) to assist any Person (whether in a financial, managerial, employment, advisory or other capacity or as a stockholder or owner, or by the provision of information) to engage in a Competitive Business within the Territory; or (iii) to own any interest in or to organize a corporation, partnership or other business or organization which engages in a Competing Business within the Territory.