Nike 2010 Annual Report Download - page 133

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management or control of, or be employed by, consult for, or be connected in any manner with, any business engaged anywhere in the world in the athletic
footwear, athletic apparel or sports equipment and accessories business, or any other business which directly competes with NIKE or any of its parent,
subsidiaries or affiliated corporations ( “Competitor”). By way of illustration only, examples of NIKE competitors include, but are not limited to: Adidas,
FILA, Reebok, Puma, Champion, Oakley, DKNY, Converse, Asics, Saucony, New Balance, Ralph Lauren/Polo Sport, B.U.M, FUBU, The Gap, Tommy
Hilfiger, Umbro, Northface, Venator (Foot lockers), Sports Authority, Columbia Sportswear, Wilson, Mizuno, Callaway Golf and Titleist. This provision is
subject to NIKE’s option to waive all or any portion of the Restriction Period as more specifically provided below.
(b) Extension of Time. In the event EMPLOYEE breaches this covenant not to compete, the Restriction Period shall automatically toll from
the date of the first breach, and all subsequent breaches, until the resolution of the breach through private settlement, judicial or other action, including all
appeals. The Restriction Period shall continue upon the effective date of any such settlement judicial or other resolution. NIKE shall not be obligated to pay
EMPLOYEE the additional compensation described in paragraph 1(d) below during any period of time in which this Agreement is tolled due to
EMPLOYEE’s breach. In the event EMPLOYEE receives such additional compensation after any such breach, EMPLOYEE must immediately reimburse
NIKE in the amount of all such compensation upon the receipt of a written request by NIKE.
(c) Waiver of Non−Compete. NIKE has the option, in its sole discretion, to elect to waive all or a portion of the Restriction Period or to
limit the definition of Competitor, by giving EMPLOYEE seven (7) days prior notice of such election. In the event all or a portion of the Restriction Period
is waived, NIKE shall not be obligated to pay EMPLOYEE for any period of time as to which the covenant not to compete has been waived.
(d) Additional Consideration. As additional consideration for the covenant not to compete described above, should NIKE terminate
EMPLOYEE’s employment and elect to enforce the non−competition agreement, NIKE shall pay EMPLOYEE a monthly payment equal to one hundred
percent (100%) of EMPLOYEE’s last monthly base salary while the Restriction Period is in effect. If EMPLOYEE voluntarily terminates employment and
NIKE elects to enforce the non−competition agreement, NIKE shall pay EMPLOYEE a monthly severance payment equal to fifty percent (50%) of
EMPLOYEE’s last monthly base salary while the Restriction Period is in effect. The first payment to EMPLOYEE of additional consideration shall follow
on the next applicable pay period after the election to enforce the non−competition agreement, payable in accordance with NIKE’s payroll practices.