Exhibit
10.19.3


 


DENINO
NON-COMPETE/NON-SOLICITATION AGREEMENT


 


This DENINO NON-COMPETE
AND NON-SOLICITATION AGREEMENT (the “Agreement”) is made and entered into as of
this 10th day of September, 2003, by and between WILLIAM DENINO (“Denino”) and
STRATUS SERVICES
GROUP, INC., a Delaware company (“Stratus”).


 


RECITALS:


 


WHEREAS, D/O STAFFING
LLC, a New Jersey limited liability company (“Omahen”) and Stratus
have executed an Asset Purchase Agreement (“Asset Purchase Agreement’) whereby
Omahen has purchased certain assets related to the ongoing clerical and light
industrial staffing business of Stratus at the Paterson, New Jersey; Perth
Amboy, New Jersey; Elizabeth, New Jersey; New Brunswick, New Jersey; and
Trenton, New Jersey branch offices (the “Purchased Assets”); and


 


WHEREAS, Omahen and
Stratus have executed an agreement providing for limitations and restrictions
on Omahen’s right to compete with Stratus, a copy of which is annexed hereto as
Exhibit “A” (“Covenant Agreement”); and


 


WHEREAS, Denino is currently
employed by Stratus as its Regional Manager; and


 


WHEREAS, upon the closing
of the transaction between Omahen and Stratus, Denino will become an employee
of an entity owned by Omahen; and


 


WHEREAS, Denino is
currently subject to the terms of a certain Employment Agreement dated
March 7, 2001 between Stratus as Employer and Denino as Employee (the
“Employment Agreement”); and


 


WHEREAS, Denino possesses
substantial information and knowledge regarding the Purchased Assets as well as
the Retained Business, including the Retained Accounts and Shared Accounts, all
as defined in the Asset Purchase Agreement; and


 


WHEREAS, Denino and
Stratus wish to re-confirm in some respects the Employment Agreement and to
also modify/clarify same; and


 


WHEREAS, Stratus and Denino
desire to enter into an agreement whereby Denino agrees not to compete with
Stratus to the extent hereinafter set forth.


 


NOW, THEREFORE, for
consideration, the receipt and sufficiency of which is hereby acknowledged, and
other good and valuable consideration, the parties hereto agree as follows:


 

















 


Confidentiality and Trade Secrets


 


Denino acknowledges that
the manuals, methods, forms, techniques and systems of Stratus in its Retained
Business, as defined below, are confidential trade secrets and are the property
of Stratus.


 


Denino further
acknowledges that he has had access to confidential information concerning
Stratus’ Retained Business and clients relating thereto, including their
business affairs, special needs, preferred methods of doing business,
prospects, methods of operation, key contact personnel and other data, all of
which provides Denino with a competitive edge and none of which is readily
available except to Stratus.


 


Denino further
acknowledges that he has had access to the names, addresses, telephone numbers,
qualifications, education, accomplishments, experience, availability, resumes
and other data regarding persons who have applied or been recruited for
temporary or permanent employment relating to Stratus’ Retained Business, as well
as job order specifications and the particular characteristics and requirements
of persons generally hired by a client, specific job listings, mailing lists,
computer runoffs, financial and other information, all of which provides Denino
with a competitive edge and none of which is readily available except to
Stratus.


 


Denino agrees that all of
the foregoing information regarding Stratus’ Retained Business and all methods,
clients and employees related thereto constitutes valuable and proprietary
trade secrets and confidential information of Stratus (hereafter “Confidential
Information”).


 


Non-Competition Agreement


 


Denino agrees that regardless of geographic location,
he will not, during the eighteen month period commencing with the Effective
Date of the Asset Purchase Agreement (“Restrictive Period”) and unless
otherwise agreed to by the parties by way of subcontracting agreement,
payrolling agreement or otherwise, service any customers of Stratus’ business
offices other than the Paterson, New Jersey; Perth Amboy, New Jersey;
Elizabeth, New Jersey; New Brunswick, New Jersey and Trenton, New Jersey
offices (the “Omahen Offices”) (Stratus’ other such offices being the Retained
Business). Denino also agrees that during the Restrictive Period he will not,  solicit the Retained Accounts set forth on
Schedule A hereof or any of Stratus’ accounts in the New Jersey counties
other than the Excluded Counties as set forth on the attached customer lists
being provided as Schedule B hereof. Denino acknowledges that doing so in
any manner would interfere with, diminish and otherwise jeopardize and damage
the business and goodwill of Stratus.


 


Non-Disclosure Agreement


 


Denino agrees that except as directed by Stratus, he
will not at any time use for any reason or disclose to any person any of the
Confidential Information or permit any person to examine and/or make copies of
any documents which may contain or are derived from Confidential Information,
whether prepared by Stratus or otherwise, without the prior written permission
of Stratus, in Stratus’ Retained Business.


 


2

















 


Agreement Not to Compete for Accounts or Personnel


 


Denino agrees that during
the Restrictive Period he will not, directly or indirectly, contact, solicit,
divert, take away or attempt to contact, solicit, divert or take away any staff
employee, temporary personnel, customer, account, business or goodwill from
Stratus regarding the Retained Business or Retained Accounts of Stratus, as of
the period twelve (12) months prior to the date of the Closing through the
Effective Date, either for Denino’s own benefit or some other person or entity,
and will not aid or assist any other person or entity to engage in any such
activities.


 


Consent of Stratus


 


Stratus hereby consents
to the employment of Denino by Omahen and agrees that such employment shall not
constitute a violation of any agreement or understanding to which Stratus is a
party.


 


3

















 


Restrictive
Period


 


If the employment of
Denino by Omahen is terminated for any reason, the Employment Agreement shall
be reinstated except that the number of months in the applicable time period
shall be shortened by the number of months of Denino’s employment by Omahen provided
that, during Denino’s term of employment by Omahen, he was at all times in
compliance with the terms of this Agreement.


 


Retained
Business


 


For purposes of this
Agreement, the term “Retained Business” shall have the meaning ascribed to it
in the Stratus Non-Compete and Non-Solicitation Agreement between Stratus and
Omahen.


 


 


	
   

  	
  STRATUS SERVICES GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph J. Raymond

  	
   

  
	
   

  	
   

  	
   Joseph J. Raymond

  	
   

  
	
   

  	
   

  	
   Chairman and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ William Denino

  	
   

  
	
   

  	
  WILLIAM DENINO

  



 


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