Common use of Restriction on Unfair Competition Clause in Contracts

Restriction on Unfair Competition. Executive agrees that during Executive’s employment with the Company, and for the duration of the Restricted Period, Executive will not participate in a Competing Business within the Restricted Area. For purposes of this Section, “participate in” includes, without limitation, participating, directly or indirectly, either as an employee, consultant, partner, shareholder, lender, corporate officer, director, or in any other capacity, in assisting a Competing Business; provided, however, that nothing in this Section prohibits Executive from making any investment in any such business (without participating in such business) if: (a) such stocks, bonds, or other securities in which Executive is investing are listed on any United States securities exchange or are publicly traded in an over the counter market; and such investment does not exceed, in the case of any capital stock of any one issuer, five percent (5%) of the issued and outstanding capital stock, or in the case of bonds or other securities, five percent (5%) of the aggregate principal amount thereof issued and outstanding; or (b) such investment is completely passive and no control or influence over the management or policies of such business is exercised.