Ktla Noncomete and Nondisclosure Agreement

Ktla Noncomete and Nondisclosure Agreement

Law Business

NONCOMPETE and NONDISCLOSURE AGREEMENT

This Noncompete and Nondisclosure Agreement ("Agreement") is made effective for all purposes and in all respects as of this 5th day of May 2010, by and between KTLA Broadcasting Corp ("Employer") and Bob Bobswell ("Employee"). Employer and Employee shall collectively be known herein as "the Parties."

WHEREAS, Employer is engaged in the business of television and news broadcasting;

WHEREAS, Employee is employed by Employer for good and valuable consideration in the capacity of news anchor;

THEREFORE the Parties, intending to be legally bound, hereby agree as follows:

RESTRICTED PERIOD. In consideration of the Employer's employing the Employee, the Employee agrees that for a period of eighteen (18) months following the cessation of employment for any reason the (the "Restricted Period") the Employee will not act in the capacity of news anchor or on-air personality for any Competing Company in the Restricted Territory, nor shall Employee directly or indirectly solicit any employee of Employer for employment elsewhere (i.e., employment with any person or entity other than Employer).

* Eighteen months is a reasonable period of time for KTLA to obtain a new anchor and to get their viewers comfortable with the new anchor. The entire point of this noncompete agreement is to avoid having viewers stop watching KTLA when Bob leaves and start watching whatever channel he starts to work for. By cushioning the time between when bob leaves and when he can compete, KTLA has the opportunity to develop a relationship between the viewers and the new anchor so that KTLA is less likely to lose viewers to Bob's new station.

B. RESTRICTED TERRITORY. For purposes of this Agreement, the "Restricted Territory" shall be defined as Los Angeles County, San Diego County, Orange County or any other top fifty (50) television market located within California.

*Los Angeles is a top thirty market, so it is fair that the employee should be restricted not only by geographical area, but also by market size. Any other stations that a viewer may be able to receive in the local market and even farther by satellite should be off limits to Bob so that he doesn't take viewers with him. It would be equally deleterious for KTLA if Bob left them for another big market outside the immediate geographical market because viewers can follow him because of abilities of broadband internet. As long as KTLA can show that they have a legitimate interest, as shown above, in a wider geographical breadth than just local stations, then this clause will likely be held up

C. COMPETING COMPANY. For purpose of this Agreement, a "Competing Company" shall be defined as any enterprise conducting business activities that are the same or similar to those of Employer. However, the brief description of Employer's business activities contained in the recitals to this agreement shall not be considered an exclusive and exhaustive list of the business activities of Employer.