RESTRICTIVE COVENANT
AGREEMENT
THIS
AGREEMENT (“ Agreement ”) dated as of
November 28, 2006 (the “ Effective Date ”)
is by and between ProQuest Company, a Delaware corporation (“
Seller ”), and Snap-on Incorporated, a Delaware
corporation (“ Buyer ”). Seller and Buyer may be
referred to in this Agreement individually as a “
Party ” or collectively as “ Parties
.”
WHEREAS ,
pursuant to the Stock and Asset Purchase Agreement by and between
Buyer and Seller dated October 20 , 2006, as amended
November 1, 2006 (the “ Stock and Asset Purchase
Agreement ”), Seller will purchase certain stock and
assets of Seller (all capitalized terms not otherwise defined shall
have the meanings set forth in the Stock and Asset Purchase
Agreement);
WHEREAS ,
Seller engages in the Business and is selling to Buyer pursuant to
the Stock and Asset Purchase Agreement all rights, title and
interest in the Acquired Business to Buyer (including all rights to
engage in the business in the future); and in connection therewith
has agreed to the restrictive covenants set forth
herein;
WHEREAS ,
Seller, pursuant to the transactions contemplated by the Stock and
Asset Purchase Agreement, will realize substantial economic
benefits, including the receipt of the Purchase Price
thereunder;
WHEREAS ,
the execution of this Agreement between Buyer and Seller is an
express condition to closing under the Stock and Asset Purchase
Agreement, as set forth in Section 9.3 of the Stock and Asset
Purchase Agreement and Buyer would not have consummated the
transactions contemplated therein in the absence of this Agreement;
and
WHEREAS ,
to protect the assets and the related business being acquired by
Buyer pursuant to the Stock and Asset Purchase Agreement, Buyer and
Seller desire to enter into this Agreement.
ARTICLE I
AGREEMENT NOT TO COMPETE; AGREEMENT NOT TO SOLICIT
SECTION 1.01
Agreement Not to Compete . Seller shall not, for a
period of five years after the Effective Date, in any location in
the world where the Acquired Business conducts operations other
than in the United Kingdom and for a period of two years after the
Effective Date in the United Kingdom: (a) directly or
indirectly, own, manage, establish, operate, participate in,
provide financial assistance to, or control any business, company,
partnership, organization, proprietorship, or other entity that is
engaged in the business of developing and deploying electronic
parts and service information retrieval products and dealer
performance applications for the automotive, powersports and
outdoor power markets as conducted by the Acquired Entities and by
the
Retained
Subsidiaries with the Foreign Assets on the Effective Date (except
as a holder of no more than five percent (5%) of the stock of a
publicly held company, provided the Seller does not participate in
the business of such company or render advice or assistance to such
company); or (b) entice or attempt to entice any third party with
which the Acquired Business transacts business directly or
indirectly so as to cause or attempt to cause any such third party
not to engage in or reduce its business with Buyer; provided,
however, that this agreement not to compete shall not apply to
retrieval products and services provided by Seller’s
Affiliates to libraries, colleges, schools and
universities.
SECTION 1.02
Agreement Not to Solicit Employees . Seller agrees and
acknowledges that the value and goodwill related to the Acquired
Business purchased by the Buyer depends on continued, amicable
relations with its employees, and Seller agrees that for a period
of two years after the Effective Date, Seller shall not, directly
or indirectly, induce or attempt to induce any Business Employee to
terminate his or her employment with Buyer or any of its
Affiliates; provided that such restriction shall not prevent Seller
or its Subsidiaries from (i) advertising to the general public
openings that it may have and hiring individuals in response to
those advertisements, or (ii) hiring any Business Employee who
has been terminated by Buyer or any of its Affiliates.
ARTICLE II
NON-DISCLOSURE AGREEMENT
SECTION 2.01
Definition . “ Confidential Information
” means any data or information of the Acquired Business,
including, without limitation, Buyer’s customer lists,
business connections, financial information, fees, business and
marketing plans, forecasts and techniques, personnel data, employee
compensation, the terms of this Agreement, business strategies, and
proprietary information, as well as information of any kind
provided to Buyer by its customers or their respective
representatives, including all written materials, notes, data,
reports assessment, analysis, whether transcribed or on computer
disk, or databases, prepared by either their employees or other
personnel in connection in any way with the work Buyer is doing for
its customers; provided that Confidential Information shall
not include information which (i) is now or becomes publicly
available, other than through disclosure by Seller or one of its
Representatives (as hereinafter defined), (ii) is now or
becomes available to Seller or its Affiliates on a non-confidential
basis from a source other than Buyer or any of its Representatives,
provided that such source is not bound by a confidentiality
agreement with or other contractual, legal or fiduciary obligation
of confidentiality to Buyer or its Affiliates that requires the
source of the information to keep such disclosed information
confidential, or (iii) that is developed by Seller independently
with no use of the Confidential Information.
SECTION 2.02
Recitals . The Parties agree that Confidential
Information shall be treated as confidential by the Seller, shall
be disclosed only as permitted in this Agreement and is valuable to
the Acquired Business and Buyer. The Parties further agree that
Buyer would suffer injury if Seller would disclose such information
or use it to compete with Buyer (except as permitted pursuant to
this Agreement) and Buyer would
2
not have
consummated the transactions contemplated herein without this
agreement with respect to the Confidential Information.
SECTION 2.03
Use . Seller shall not directly or indirectly use or
induce or permit others to use any of the Confidential Information
for any purposes, except as may be reasonably necessary for
purposes of providing services under the Transition Services
Agreement referred to in Section 9.4 of the Stock and Asset
Purchase Agreement (the “ Transition Services
”). Seller shall not directly or indirectly divulge,
disclose, or communicate to any person, firm, entity, or other
third party in any manner whatsoever any information relating to or
constituting a part of the Confidential Information;
provided , however , that such disclosures may be
made to those of Seller’s directors, officers, employees,
attorneys, accountants, and other agents (collectively, “
Representatives ”) with a specific need to know for
purposes of providing or administering Transition Services or for
valid legal purposes of Seller (including in connection with
disputes pursuant to the Stock and Asset Purchase Agreement); and
provided further that Seller may disclose
Confidential information to the extent it is requested or required
to do so by deposition,
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