Exhibit 10.4
FORM OF
NON-COMPETITION
AGREEMENT
THIS NON-COMPETITION AGREEMENT (the
“Non-Competition Agreement”) is entered into by and
between International Paper Company (together with its subsidiaries
and affiliates, “International Paper”), a New York
corporation, and the undersigned employee of International Paper to
protect the valuable competitive information and business
relationships of International Paper.
1. Acknowledgements
. I acknowledge and agree
that:
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a.
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In the course
and scope of my employment with International Paper, I have
developed or will develop unique relationships with customers and
suppliers of International Paper;
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b.
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As a key
employee of International Paper, I perform unique and valuable
services to International Paper of an intellectual character and
that my services will be difficult for International Paper to
replace;
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c.
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International
Paper has provided or will provide me with unique knowledge and
training about its Confidential Information. Confidential
Information, as used in this Non-Competition Agreement, includes,
but is not limited to, any information possessed or owned by
International Paper which is not generally known to the public,
especially if such information gives International Paper a
competitive advantage or its disclosure would harm International
Paper. It includes, but is not limited to, trade secrets,
proprietary information and all other information documents or
materials, owned, developed or possessed by International Paper or
any employee of International Paper, whether tangible or
intangible, relating in any way to International Paper’s
research and development, customers, prospective customers,
business plans, business relationships, products or processes,
costs or profit information or data from which that information
could be derived, human resources (including internal evaluations
of the performance, capability and potential of any International
Paper employee), business methods, databases and computer
programs;
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d.
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The business of
International Paper and its customers is worldwide in scope, that
International Paper’s competitors and customers are located
throughout the world, that International Paper’s strategic
planning and research and development activities have application
throughout the world and are for the benefit of customers and
International Paper’s business throughout the world, that use
or disclosure of Confidential Information or prohibited competition
will irreparably injure International Paper; and,
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e.
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I am entering
into this Non-Competition Agreement in conjunction with my
participation in the International Paper [INSERT PLAN NAME] and
that this provides adequate and significant consideration for my
willingness to enter into this Non-Competition
Agreement.
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2. Non-Compete Provisions
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a.
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For the purpose
of this Non-Competition Agreement, Competitive Activities
are:
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i.
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producing,
developing, selling or marketing, or assisting others to produce,
develop, sell or market;
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ii.
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engaging in any
sales, marketing, research and development or managerial duties
(including, without limitation, financial, human resources,
strategic planning, or operational duties), whether as an employee,
consultant, or otherwise, for any entity which produces, develops,
sells or markets;
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iii.
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owning,
managing, operating, controlling or consulting for any entity which
produces, develops, sells or markets; or
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iv.
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soliciting the
business of any person, company, firm, or corporation who is or was
a customer of International Paper or active prospective customers
of International Paper within twelve (12) months prior to the
termination of my employment; for:
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any product, process, or service
that is competitive with those products, processes, or services of
International Paper, whether existing or contemplated for the
future, on which I have worked, or concerning which I have in any
manner acquired knowledge, trade secrets or confidential
information during the twenty-four (24) months preceding
termination of my employment.
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b.
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While an
employee or consultant of International Paper, I agree not to
engage in any Competitive Activities or prepare to engage in any
Competitive Activities in any manner, either directly or
indirectly, whether for compensation or otherwise, with
International Paper, or to assist any other person or entity to
compete or to prepare to compete with International
Paper.
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c.
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I agree that
for twelve (12) months after the date of termination by either
party of the employment or consulting relationship for any reason
(the “Non-Compete Period), I shall not, directly or
indirectly, commit, participate in or facilitate any of the
Competitive Activities for any entity that is competitive with the
business group(s) in which I worked and in the geographic area for
which I was responsible.
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d.
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It shall not be
a violation of this provision for me to accept employment with a
non-competitive division or business unit of a multi-divisional
company when some of its divisions or business units are
competitors of International Paper, so long as I do not engage in,
oversee, provide input or information regarding, or participate in
any manner in the activities described in Paragraph 2(a) as they
relate to the division or business unit which is a competitor of
International Paper.
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e.
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I shall not
assist others in engaging in activities that I am not permitted to
undertake.
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3. Confidentiality
. I agree that at all
times, both during and after my employment with International
Paper, I shall not directly or indirectly use or disclose any
Confidential Information to any third person or entity outside
International Paper, except (i) as may be necessary in the
good faith performance of my duties for International Paper or
(ii) as I am required to disclose under any applicable laws,
regulations or directives of a governmental entity having
jurisdiction in the matter or under subpoena or other process of
law, provided that I shall promptly notify the Company in writing
of any such requests for disclosure.
4. Common Law Duties
. I acknowledge and agree
that I owe fiduciary and common law duties to International Paper,
in addi
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