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GULFMARK OFFSHORE INC | Rigdon Marine Corporation | Rigdon Marine Holding LLC | Sherwood Investment LLC. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
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Exhibit 10.8
Execution Copy
NON-COMPETITION AND NON-SOLICITATION AGREEMENT
This
NON-COMPETITION AND NON-SOLICITATION AGREEMENT (this Agreement) is
entered into as of July 1, 2008 (the Effective Date), by and
between Gulfmark Offshore, Inc., a Delaware corporation (Buyer), and
Larry T. Rigdon (Rigdon).
WHEREAS,
Buyer has entered into that certain Membership Interest and Stock Purchase
Agreement dated as of May 28, 2008 (the Purchase Agreement), with
Rigdon Marine Holding LLC (RMH) and Rigdon Marine Corporation (RMC;
RMH and RMC each a Company and collectively, the Companies),
all the members of RMH (the Members) and Sherwood Investment L.L.C.,
John J. Tennant III Irrevocable Trust, Brian M. Bowman Irrevocable Trust and
Bourbon Offshore (f/k/a Bourbon Offshore Holdings, SAS), as shareholders of RMC
(with the Members collectively, Sellers);
WHEREAS,
pursuant to the Purchase Agreement, Sellers have agreed to sell, and Buyer has
agreed to buy, all of the membership interests in RMH and all of the shares of
Common Stock in RMC not owned by RMH;
WHEREAS,
Rigdon has been extensively involved in the management and operation of the
Companies and their respective business operations and, directly or indirectly,
owns a substantial equity interest in the Companies;
WHEREAS,
Rigdon, as a result of his equity interest in the Companies, will receive
substantial consideration as of the closing of the transactions contemplated by
the Purchase Agreement (the Closing);
WHEREAS,
Buyer, as a condition to the Closing, requires that Rigdon execute and deliver
this Agreement; and
WHEREAS,
Rigdon, for the consideration of the execution and delivery of the Purchase
Agreement and the consideration to be received by Rigdon in connection with the
transactions contemplated thereby, has agreed to, and does hereby, enter into
this Agreement on the terms and conditions set forth below;
NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as
follows:
Definitions.
For purposes of this Agreement, (a) the capitalized terms set forth below
shall have the respective meanings specified below, and (b) other
capitalized terms used but not otherwise defined herein shall have the
respective meanings assigned to such terms in the Purchase Agreement.
Affiliate
means any Person who is an affiliate as defined in Rule 12b-2 of the
General Rules and Regulations under the Securities Exchange Act of 1934, as
amended.
Business
means the construction, ownership and/or operation of Offshore Support Vessels
to be used for transportation of materials and supplies to and from offshore
platforms and drilling rigs.
1
Business
Day means any day other than a Saturday, Sunday or other day on which
commercial banks in the State of Texas are authorized or required by law or
executive order to close.
Effective
means when the Purchase Price is delivered and received at Closing by the
Seller Representative under the Purchase Agreement.
Offshore
Support Vessels means offshore platform supply vessels, offshore supply
vessels and offshore crewboats.
Person
means any individual, firm, corporation, partnership, trust, incorporated or
unincorporated association, joint venture, joint stock company, limited liability
company, Governmental Authority or other entity of any kind, and shall include
any successor (by merger or otherwise) of such entity.
Restriction
Period means the period commencing when this Agreement becomes Effective
and ending two (2) years thereafter.
Territory
means the United States Gulf of Mexico and Trinidad and Tabago.
Restrictive
Covenants. During the Restriction Period, Rigdon shall not, directly or
indirectly, on his own behalf or as a shareholder, owner, principal, member,
partner, joint venturer, individual proprietor, employer, director, trustee,
manager, officer, employee, consultant, independent contractor, agent, sales
representative, investor or lender, or in any other individual, representative
or other capacity (each an Other Capacity) (other than through passive
investments in securities constituting not more than one percent (1%) of the
outstanding securities of any class of publicly-traded securities registered on
any national securities exchange or market other than securities of Buyer):
construct,
own or operate any Offshore Support Vessels, or provide goods, services,
financing or other assistance to, any business that provides services similar
to those provided by the Business anywhere in the Territory;
solicit,
induce or influence, or attempt to solicit, induce or influence, any Person to
purchase or obtain any services of a type rendered by the Business from any
Person in the Territory other than one of the Companies;
solicit,
induce or influence, or attempt to solicit, induce or influence, any customer,
government agency, supplier, distributor, independent contractor, agent or
other Person to terminate or otherwise alter its contractual or business
relationship with any of the Companies, Buyer or any of their Affiliates; or
solicit,
entice, induce, suggest or request that any employee of any of the Companies,
Buyer or any of their Affiliates (whether employed directly or indirectly,
including through an employee leasing arrangement) terminate such employees
relationship with such Company, Buyer or such Affiliate, as applicable.
2
Nondisparagement.
Rigdon agrees that he shall not make or publish any statement, written or oral,
disparaging the reputation of any of the Companies, Buyer, any of their
Affiliates or any of their respective directors, officers, employees, agents or
representatives; provided that the foregoing shall not limit in any way the
enforcement by Rigdon of any legal rights or claims against Buyer under this
Agreement or the Purchase Agreement.
Independence
of Obligations. The covenants of Rigdon set forth in this Agreement shall
be construed as separate agreements independent of any other agreement or arrangement
between Rigdon, on the one hand, and Buyer, on the other. The existence of any
claim or cause of action by Rigdon against Buyer, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement of
any of the covenants contained in this Agreement against Rigdon.
Reasonableness;
Reformation. Rigdon acknowledges that, by virtue of his association with
the Companies, he has developed considerable expertise in the operations of the
Business. Rigdon recognizes that Buyer and the Companies would be irreparably
damaged, and Buyers substantial investment in the Companies and their Business
would be materially impaired, if Rigdon were to engage in any activity in
violation of the terms of this Agreement. Accordingly, Rigdon expressly
acknowledges that (a) he is voluntarily entering into this Agreement;
(b) this Agreement is ancillary to the Purchase Agreement and Buyer would
not have executed the Purchase Agreement and agreed to consummate the transactions
contemplated thereby without Rigdons execution and delivery of this Agreement;
(c) the provisions of this Agreement contain reasonable limitations as to
time, geographical area and scope of activities to be restrained, and such
limitations and the other provisions of this Agreement have been specifically
negotiated by sophisticated commercial parties with the assistance of legal
counsel and are given as an essential and integral part of the transactions
contemplated by the Purchase Agreement; (d) the provisions of this
Agreement do not impose a greater restraint than is necessary to protect the
goodwill and other business interests of Buyer and the Companies; (e) if
any portion of the covenants and agreements set forth in this Agreement are
held by a court of competent jurisdiction to be invalid, unreasonable,
arbitrary or against public policy, then such portion of such covenants shall
be considered divisible as to time, scope of activities covered, and
geographical area, and the remaining provisions of this Agreement shall
nevertheless be binding upon the parties hereto with the same effect as though
the invalid, unreasonable or arbitrary part had been severed and deleted and
had never constituted a part hereof; and (f) if any court of competent
jurisdiction determines the specified time period, scope of activities covered,
or geographical area applicable to any provision of this Agreement to be
invalid, unreasonable, arbitrary or against public policy, a lesser time
period, scope of activities covered, and/or geographical area which is
judicially determined to be reasonable, non-arbitrary and not against public
policy may be enforced against Rigdon.






