NON-COMPETITION
AGREEMENT
This NON-COMPETITION AGREEMENT
(the “ Agreement ”), dated as of September __,
2008, is by and between [NAME] (the “ Stockholder
”) and Driftwood Ventures, Inc., a Delaware corporation
(“ Parent ”).
RECITALS
WHEREAS , Stockholder is the beneficial owner of certain
shares of capital stock of Zoo Games, Inc., a Delaware corporation
(the “ Target ”);
WHEREAS , Stockholder is employed by [EMPLOYER]
(hereinafter the “Employer”) pursuant to a written
employment agreement dated [DATE], (the “Employment
Agreement”);
WHEREAS , Parent is acquiring all of the outstanding
capital stock and all of the business of Target pursuant to an
Agreement and Plan of Merger, dated as of July 7, 2008, by and
among Parent, DFTW Merger Sub, Inc., a Delaware corporation and a
wholly-owned subsidiary of Parent, Target and the Representative,
as amended (the “ Merger Agreement
”);
WHEREAS , the Stockholder acknowledges that the
businesses conducted by Target prior to the consummation of the
transactions contemplated under the Merger Agreement are those of
developing, publishing and distributing gaming and packaged
entertainment software for use on gaming
platforms (collectively, the “ Business ”),
which Business is intensely competitive;
WHEREAS , in connection with the Stockholder’s
ownership interest in Target, the Stockholder has obtained
specialized knowledge of the Business and has had access to trade
secrets, customer lists, data, records, financial information,
proprietary methods, personnel information, business secrets,
operational methods and other valuable confidential business
information in connection with the Business which is not generally
publicly available, the disclosure of which would place Parent and
its affiliates at a serious competitive disadvantage, and would do
serious damage to Parent and its affiliates, financial and
otherwise; and
WHEREAS , Target has made significant efforts and
incurred significant costs and expenditures in developing
relationships with customers, potential customers, suppliers,
employees and others, which the Stockholder acknowledges would be
irreparably damaged by his competition with Parent.
NOW,
THEREFORE , as an
inducement to Parent to enter into the Merger Agreement and as a
condition to the consummation of the transactions contemplated
therein, in consideration of the mutual promises contained herein,
and for other good and valuable consideration, the receipt and
sufficiency of which is hereby mutually acknowledged, the
Stockholder covenants and agrees with Parent as follows:
SECTION 1.1 Covenant Against Competition
. During the period
commencing the date hereof and terminating on the third anniversary
of the date of this Agreement, the Stockholder shall not, directly
or indirectly, either alone or in association with others, anywhere
within the world, other than in the performance of his or her
duties as an employee or consultant of Parent or its
affiliates:
(a) engage, in any way or to any extent, in the
Business;
(b) whether as a principal, consultant, partner or
in any other capacity, own, manage, control or participate in the
ownership, management or control of, or render services directly
related to, any person, corporation, partnership, proprietorship,
firm, association or other business entity engaged in any way and
to any extent in the Business or any other activities that are
competitive with the Business;
(c) induce, request or encourage any employee,
consultant, officer or director of Parent or its affiliates to
terminate any such relationship with Parent or such
affiliate;
(d) employ, cause to be employed, or assist in or
solicit the employment of any employee, consultant, officer or
director of Parent or its affiliates while any such person is
providing services to Parent or its affiliates or within six months
after any such person ceases providing services to Parent or its
affiliates; or
(e) solicit, divert or appropriate, or assist in or
attempt to solicit, divert or appropriate, any customer or
supplier, or any potential customer or supplier, of Parent or its
affiliates for the purpose of competing with the
Business.
Notwithstanding any provision of this Agreement
to the contrary, the Stockholder may own, directly or indirectly,
securities of any entity having a class of securities registered
pursuant to the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) which engages in a business competitive
with the Business, provided that the Stockholder does not, directly
or indirectly, individually or in the aggregate (including without
limitation by being a member of a group within the meaning of Rule
13d-5 under the Exchange Act) own beneficially or of record more
than one percent (1%) of any class of securities of such entity.
For purposes of this Agreement, the term “affiliate”
shall have the meaning ascribed to such term in Rule 405 under the
Securities Act of 1933, as amended.
Notwithstanding
anything to the contrary set forth in Section 1.1 above, if the
Shareholder’s employment under the Employment Agreement is
terminated by the Employer without cause or by the Stockholder due
to a material breach by the Employer of the Employment Agreement,
then this Section 1.1(a) and Section 1.1(b) shall apply to the
Stockholder only for so long as the Stockholder is receiving
severance pay due under the Employment Agreement or Base Salary
pursuant to the following sentence. Notwithstanding anything to the
contrary in the Employment Agreement, the Employer shall have the
right to pay the Stockholder his Base Salary to extend the period
of non-competition for as long as Employer determines, in the sole
exercise of its discretion, but in no event beyond the Term
Expiration Date.
This Agreement
shall survive and be enforceable whether or not any compensatory
payment is made if the Stockholder’s employment is terminated
(i) for cause or (ii) if the Stockholder resigns for any reason
other than a material breach by the Employer of the Employment
Agreement.
SECTION 1.2 Covenant Regarding
Confidentiality . The Stockholder shall maintain in confidence and
shal