HRX Holdings Pty Ltd v Pearson [2012] FCA 161
The background
HRX Holdings Pty Ltd ('HRX Holdings') sought to restrain
Mr Brent Pearson ('Pearson'), its former co-founder, for a
substantial period of time as was set out in his contract of
employment.
The contract, called an 'executive service agreement'
contained the restraint clause which restrained Pearson for two
years from the date of the termination of his employment from
partaking in any of the identified 'restraint' activities.
One such activity included indirectly or directly carrying on,
being involved with or accepting payment from any business in
competition with HRX Holdings.
For entering into the contract containing the restraint clause,
HRX Holdings gave Pearson an 8% shareholding in the company and a
guarantee that Pearson would for the period of his restraint
(except for the first three months) receive his past average
remuneration.
