Common use of Protective Covenant/Non-Competition Clause in Contracts

Protective Covenant/Non-Competition. Executive agrees that to protect the Company’s Confidential Information and goodwill, and in consideration for the grants to Executive under the Plans referenced in Agreement Section 5(d), it is necessary to enter into the following protective covenants, which are ancillary to the enforceable promises between the Company and Executive in the other Agreement Sections. During Executive’s employment with the Company, and for a one-year period after the date Executive’s employment is terminated by the Company for any reason, or if Executive resigns for any reason, Executive shall not, without the Company’s prior written consent, directly or indirectly: (i) compete for or solicit business for or on behalf of any person or business entity operating a state or national bank or company providing similar services with a place of business in the State of Texas; (ii) own, operate, participate in, consult with, undertake any employment with, or have any interest in any entity with a place of business in the State of Texas related to the operation of a state or national bank or company providing similar services, except that Executive may own publicly traded stock for investment purposes only in any company in which Executive owns less than 5% of the voting equity; or (iii) use or rely on in any competition, solicitation, or marketing effort any Confidential Information, any proprietary list, or any information concerning any customer of the Company. Executive also acknowledges that the geographic boundaries, scope of prohibited activities, and the duration of the provisions in these Protective Covenants are reasonable and are no broader than are necessary to protect the Company’s legitimate business interests. These Protective Covenants shall survive the termination of Executive’s employment and can be revoked or modified only by a writing signed by the Parties that specifically states an intent to revoke or modify this provision. Executive acknowledges that the Company would not employ him or provide him with access to its Confidential Information but for his Protective Covenants or promises contained in this Agreement Section 6. Executive further agrees that during the non-competition term, he shall immediately notify the Company in writing of any employment, work, or business he undertakes with or on behalf of any person (including himself) or entity.

Protective Covenant/Non-Competition. Executive agrees that to protect the Company’s Confidential Information and goodwill, and in consideration for the grants to Executive under the Plans referenced in Agreement Section 5(d), it is necessary to enter into the following protective covenants, which are ancillary to the enforceable promises between the Company and Executive in the other Agreement Sections. During Executive’s employment with the Company, and for a one-year period after the date Executive’s employment is terminated by the Company for any reason, or if Executive resigns for any reason, Executive shall not, without the Company’s prior written consent, directly or indirectly: (i) compete for or solicit business for or on behalf of any person or business entity operating a state or national bank or company providing similar services with a place of business in the State of Texas; (ii) own, operate, participate in, consult with, undertake any employment with, or have any interest in any entity with a place of business in the State of Texas related to the operation of a state or national bank or company providing similar services, except that Executive may own publicly traded stock for investment purposes only in any company in which Executive owns less than 5% of the voting equity; or (iii) use or rely on in any competition, solicitation, or marketing effort any Confidential Information, any proprietary list, or any information concerning any customer of the Company. Executive also acknowledges that the geographic boundaries, scope of prohibited activities, and the duration of the provisions in these Protective Covenants are reasonable and are no broader than are necessary to protect the Company’s legitimate business interests. These Protective Covenants shall survive the termination of Executive’s employment and can be revoked or modified only by a writing signed by the Parties that specifically states an intent to revoke or modify this provision. Executive acknowledges that the Company would not employ him her or provide him her with access to its Confidential Information but for his her Protective Covenants or promises contained in this Agreement Section 6. Executive further agrees that during the non-competition term, he she shall immediately notify the Company in writing of any employment, work, or business he she undertakes with or on behalf of any person (including himselfherself) or entity.