Shareholders' Non-Compete Clause Samples
The Shareholders’ Non-Compete clause prohibits shareholders from engaging in business activities that directly compete with the company, either during their ownership or for a specified period after selling their shares. Typically, this clause outlines the types of businesses or activities that are restricted, the geographic area covered, and the duration of the restriction. Its core function is to protect the company’s business interests and confidential information by preventing former shareholders from using their insider knowledge to benefit a competing enterprise.
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Shareholders' Non-Compete. For a period that will expire [**] years after the Last Closing date of this Agreement, or upon payment of the last installment of the Earn Out Consideration, whichever is longer, each of the Shareholders undertake that he will not, without the prior written consent of CollaGenex, directly or indirectly own, manage, operate, control, participate in, perform services for, or otherwise carry on, a business that is engaged in the research, development, manufacture or sale in the United States of America or the European Union, of any products [**] for (x) the treatment of rosacea or (y) the treatment of any acne or redness related disorder of the skin, other than unknowingly as a holder of shares listed on a recognized stock exchange as a minority shareholder in a company pursuing such activities, and that he will not during such period, or at any time thereafter, challenge the validity of any patent that arises and issues out of the Patent Applications.
Shareholders' Non-Compete. Without the express prior written consent of Purchasers, none of the Shareholders shall, at any time during the two-year period immediately following the Closing Date, directly or indirectly, own, manage, control or participate in the ownership, management or control of, or be related or otherwise affiliated in any manner with, any business similar to that engaged in by the Company in the territory of Romania. Each Shareholder agrees that such Shareholder and such Shareholder's Affiliates will not, for a period of two years after the Closing Date, seek to employ any person now employed by the Company or any Company Subsidiary.