Compass Bank v. Hartley

430 F.Supp.2d 973 (2006)

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Nature of the Case

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Facts

P and D entered into several agreements containing post-employment restrictive covenants. A February 19, 2001, Offer Letter includes a post-employment non-solicitation covenant for two years. A 2004 Stock Option Agreement contains both non-solicitation and non-disclosure covenants for a duration of 2 years/18 mo./12 mo. (step-down provisions). It also contains a loyalty provision. Its terms also amend all earlier stock option agreements by replacing the restrictive covenants in those earlier agreements with the restrictive covenant in the 2004 Agreement, such that the restrictive covenants in all previous agreements also contain the step-down provisions. A stock option agreement dated April 15, 2005, contains non-solicitation, non-compete, and non-disclosure covenants, as well as a loyalty provision, set forth in Section 8 for 2 years/18 mo./12 mo. (step-down provisions). The step-down provisions were for 1-2 years and within a geographic scope of 25-50 miles. P moved for a preliminary injunction against Ds.