PROPRIETARY INFORMATION and NON-SOLICITATION AGREEMENT

Provided to AGRiP 11/4/11 by Chris Carey, with the following comments.

Only the Pool Administrator is subject to an employment contract with non-compete language. ALL employees sign a “Proprietary and Non-Solicitation Agreement” as well as our Employee Handbook which contains “Confidentiality” provisions. I have attached the main agreement.
When necessary, we execute confidentiality agreements with third party vendors.
These agreements are enforceable in Virginia and we try to have Virginia as the venue in all of our agreements.
Virginia Pooling regulations specify which aspects of the Pool are public and which parts are exempt. It is pretty clear.

VACo Risk Management Programs, Inc.

EMPLOYEE PROPRIETARY INFORMATION and NON-SOLICITATION

AGREEMENT

In consideration of my employment by VACo Risk Management Programs, Inc. (the "Company"), and the compensation now and hereafter paid to me, I hereby agree as follows:

1.Definitions. The following are defined terms in this Agreement:

1.1 “Proprietary Information” shall mean all knowledge and data that is exclusive and/or sensitive or confidential to the Company. By way of illustration it includes (a)inventions, ideas, processes, practices, data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques (hereinafter collectively defined as "Inventions"); and (b)information regarding plans for research, development, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, procurement data, proposals, Company and client pricing and cost data, suppliers and clients; (c) information regarding the skills and compensation of other employees of the Company; and (d) all other “trade secrets,” as defined by Va. Code 59.1-336 (“Trade secret” means information, including but not limited to, a formula, pattern, compilation, program, device, method, technique, or process, that: 1) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other person who can obtain economic value from its disclosure or use, and; 2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.)

1.2 “Third Party Information” shall mean all knowledge and data that is exclusive to and/or sensitive and confidential to any third party, including clients and all client records.

1.3 “Proprietary Rights” shall include all trade secret, patent, copyright and other intellectual property rights.

2.Nondisclosure.

2.1 Recognition of Company's Rights; Nondisclosure. At all times during my employment and thereafter, I will hold in confidence and will not disclose or publish any Proprietary Information, except as such disclosure, or publication may be required in connection with my work for the Company. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns. I am free, however, to use information which is generally known in the trade or industry, which is not gained as result of a breach of this Agreement, and my own, skill, knowledge, know-how and experience to whatever extent and in whichever way I wish.

2.2 ThirdParty Information. I understand that the Company will have in its possession Third Party Information subject to a duty on the Company's part to maintain the sensitivity and confidentiality of such information and to use it only for certain limited purposes. During the term of my employment and thereafter, I will hold all Third Party Information in confidence and will not use or disclose to anyone outside of the Company such Third Party Information.

2.3 NoImproper Use of Information of Prior Employers. During my employment by the Company I will not improperly use or disclose any sensitive or confidential information or trade secrets, if any, of any former employer or any other person to whom I have an obligation of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that former employer or person.

3.Inventions.

3.1 Assignment of Inventions. I hereby assign and agree to assign in the future (when any such Inventions are first reduced to practice or first fixed in a tangible medium, as applicable) to the Company all my right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) made or conceived or reduced to practice or learned by me, either alone or jointly with others, during the period of my employment with the Company.

3.2 Prior Inventions. Inventions, if any, which I made prior to the commencement of my employment with the Company, are excluded from the scope of this Agreement. I have set forth on ExhibitA (Previous Inventions) attached hereto a complete list of all Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of my employment with the Company, that I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement (collectively referred to as "Prior Inventions"). If no such disclosure is attached, I represent that there are no Prior Inventions.

3.3 Unassigned Inventions. This Agreement does not require assignment of any Invention that was developed entirely on my own time without using the Company’s equipment, supplies, facilities, or trade secrets.

3.4 Obligation to Keep Company Informed. During the period of my employment and for six (6) months after termination of my employment with the Company, I will promptly disclose to the Company fully and in writing all Inventions authored, conceived or reduced to practice by me, either alone or jointly with others. In addition, I will promptly disclose to the Company all patent applications filed by me or on my behalf within a year after termination of employment. The Company will keep in confidence and will not use for any purpose or disclose to third parties without my consent any confidential information disclosed in writing to the Company pursuant to this section.

3.5 Works for Hire. Unless specifically documented with written approval from the Administrator of the Company, I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of my employment and which are protectable by copyright are "works made for hire," pursuant to United States Copyright Act (17 U.S.C., Section 101).

3.6 Enforcement of Proprietary Rights. I will assist the Company in every proper way to obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to Inventions that I have assigned to the Company, if any. I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof. My obligation to assist the Company with respect to Proprietary Rights relating to such Inventions shall continue beyond the termination of my employment, but the Company shall compensate me at a reasonable rate after my termination for the time actually spent by me at the Company's request on such assistance.

4.Records. I agree to keep and maintain adequate and current records of all Proprietary Information developed by me and all Inventions made by me during the period of my employment at the Company, if any, which records shall be available to and remain the sole property of the Company at all times.

5.Duty of Loyalty During Employment. I understand that my employment with the Company requires my full attention and effort. I agree that during the period of my employment by the Company I will not, without the Company's express written consent, engage in any employment or business activity other than for the Company, which is competitive with, or would otherwise conflict, with my employment by the Company.

6.Non-Solicitation. At all times during my employment with the Company and for one (1) year thereafter, I will not, either directly or indirectly, (i)solicit or attempt to solicit any employee, independent contractor or consultant of the Company to become an employee, consultant or independent contractor to or for any other person or entity, if such solicitation or attempt to solicit could adversely affect the legitimate business interests of the Company, (ii) solicit, divert, take away, or attempt to solicit, divert, or take away any client or customer of the Company with whom I had contact or whose identity I learned as a result of my employment relationship with the Company for any person or business in competition with the Company without the prior written consent of the Company, which consent the Company shall not be obligated to give; (iii) solicit, divert, take away, or attempt to solicit, divert, or take away any relationship related to the provision of services with any person or entity that the Company solicited, contracted with, or was negotiating to contract with during the period commencing six (6) months prior to my employment and ending on the date my employment with the Company ends whether the services be for that person or entity or some other person or entity. For purposes hereof, “customer” and “client” means any person or specific entity to whom or to which or on whose behalf the Company provided goods or services, or had negotiated or proposed to provide goods and services by way of contract, sub-contract, service agreement, work order or any other similar proposal or relationship regardless of whether such goods and services had actually been provided or such proposal or relationship entered into, at any time during the period commencing six (6) months prior to my employment and ending on the date my employment with the Company ends.

7.Return of Company Documents; Inspection of Property. When I leave the employ of the Company, I will deliver to the Company any and all, notes, memoranda, data, and documents, together with all copies thereof, and any other material containing, disclosing or relating in any way to Proprietary Information. I agree that any property owned by the Company, including disks and other storage media and the contents of filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice and agree not to remove Company property from Company premises except when required to do so in the ordinary course of performance of my responsibilities as an employee. I further agree not to destroy or transfer Company related electronic records.

8.Enforcement of Agreement.

8.1 Remedies. I acknowledge that execution and delivery of this Agreement by me is a material inducement to the Company to employ me. In the event of any breach or threatened breach of this Agreement by me the Company shall have the right to enforce this Agreement by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

8.2 If any litigation arises out of or relates to Section 6 of this Agreement, whether initiated by the Company or by me and the Company prevails in such litigation, the time periods specified in such provisions be deemed to be extended and will start from the date that a final order is entered against me from which no further appeal can be taken.

8.3 Legal Fees. I agree that if I breach any provision in this Agreement, that I shall pay to the Company all of the Company’s costs and expenses, including, without limitation, reasonable attorneys’ fees incurred in successfully enforcing the terms of this Agreement.

8.4 Notices. Any notices required or permitted hereunder shall be in writing and given to the appropriate party at the address specified below or at such other address as the party shall specify by at least ten (10) days’ notice to the other.

If to Employee:______

______

If to Company:VACo Risk Management Programs Inc.

308 Market Street SE Suites 1&2

Roanoke, VA24011

9.General Provisions.

9.1 Governing Law; Consent to Personal Jurisdiction. This Agreement will be governed by and construed according to the laws of the Commonwealth of Virginia, without regard to its conflict of law rules.

9.2 Severability. In case any one or more of the provisions, subsections, or sentences contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. Moreover, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

9.3 Successors and Assigns. Except as set forth below, this Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. I may not assign my rights or delegate my duties under this Agreement without the prior written consent of the Company, which consent the Company shall not be obligated to give. The provisions hereof relating to my duty to assist the Company in enforcing Proprietary Rights related to Company Inventions shall be personal to me.

9.4 Survival. The provisions of this Agreement shall survive the termination of my Employment Relationship.

9.5 Employment At-Will. I agree and understand that I am employed at-will, and that the Company and I each remain free to terminate the Employment Relationship with or without advance notice for any reason or no reason at all. Only the Administrator of the Company has the authority to modify the at-will nature of employment. Any such modification to the at-will status must be in writing as an express amendment or exception to the at-will policy and signed by the Administrator in order to be enforceable.

9.6 Waiver. No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by the Company of any right under this Agreement shall be construed as a waiver of any other right. The Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement.

9.7 Entire Agreement; Construction. This Agreement is the final, complete and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the Administrator.

Accepted and Agreed To:

Signed this ____ day of ______, ____.

Employee Signature:______

Printed Name:______

VACo Risk Management Programs, Inc.

Witnessed By: ______

Title: ______

Date: ______

IMPORTANT: EMPLOYEE MUST ALSO COMPLETE AND SIGN EXHIBIT A

Exhibit A

Prior Inventions

1.Except as listed in Section 2 below, the following is a complete list of all Prior Inventions (as such term is defined in the Agreement to which this Exhibit is attached).

No inventions or improvements.

See below:

______

Additional sheets attached.

2.Due to a prior confidentiality agreement, I cannot complete the disclosure under Section1 above with respect to Prior Inventions generally listed below, the proprietary rights and duty of confidentiality with respect to which I owe to the following party(ies):

InventionParty(ies)Relationship

Additional sheets attached.

Employee Signature: ______

Printed Name: ______