Sample Business Contracts

Non-Competition Agreement - NaviSite Inc. and John B. Muleta

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                           NON-COMPETITION AGREEMENT
                                 NAVISITE, INC.

     IN CONSIDERATION OF the grant to the undersigned employee or consultant of
an option for the purchase of 175,000 shares of Common Stock, $0.01 par value
per share, of NaviSite, Inc. (the "Company", which term as used herein shall in
all instances be deemed to include all corporations or other legal entities
controlled, directly or indirectly, by the Company), and other good and valuable
consideration, the undersigned employee or consultant hereby agrees as follows:

1. NON-COMPETITION AGREEMENT.  I agree that during my employment or consulting
relationship with the Company and for twelve (12) months thereafter, I will not,
directly or indirectly,:

     (a)  Engage in any business or enterprise (whether as an owner, member,
          manager, partner, officer, employee, director, investor, lender,
          consultant, independent contractor or otherwise, except as the holder
          of not more than 1% percent of the combined voting power of the
          outstanding stock of a publicly held company) that is competitive with
          the Company's business, including, but not limited to, any business or
          enterprise that develops, designs, produces, markets, sells or renders
          any product or service competitive with any product or service
          developed, designed, produced, marketed, sold or rendered by the
          Company or any of its subsidiaries while I was employed by or provided
          consulting services to the Company; or

     (b)  Either alone or in association with others, solicit, divert, or take
          away or attempt to divert or to take away, the business or patronage
          of any of the clients, customers or accounts, or prospective clients,
          customers or accounts, of the Company which were contacted, solicited
          or served by me while I was employed by or provided consulting
          services to the Company;

     (c)  Either alone or in association with others (i) solicit, or permit any
          organizations directly or indirectly controlled by me to solicit, any
          employee of the Company to leave the employ of the Company, (ii)
          solicit for employment, hire or engage as an independent contractor,
          or permit any organization directly or indirectly controlled by me to
          solicit from employment, hire or engage as an independent contractor,
          any person who is/was employed by the Company at any time during the
          term of my employment or consulting relationship with the Company;
          provided, that this clause (ii) shall not apply to the solicitation,
          hiring or engagement of any individual whose employment with the
          Company has been terminated for a period of six months or longer.


     (d)  The geographic scope of this Section shall extend to anywhere the
          Company is doing business, has done business or intends to do

     (e)  If I violate the provisions of this Section, I shall continue to be
          bound by the restrictions set forth in this Section until a period of
          one year has expired without any violation of such provisions.

     (f)  Subsequent to the last day of my employment by the Company I may
          request permission to work for or with an entity covered by this
          Agreement by delivering a written request to the Company at its then
          current headquarters address via certified mail or a nationally
          recognized overnight delivery service that provides proof of delivery,
          to the attention of the Chief Executive Officer with copies of such
          written request being concurrently delivered to the Vice President of
          Human Resources and the General Counsel of the Company. I understand
          that each such written request must specify the name of the entity
          that has offered a position to me, a brief description of the business
          of that entity, the title of my prospective position and a brief
          description of my roles and responsibilities in such position. If,
          within five business days after receipt by the above persons at the
          Company of such a written request by me (in the manner described
          above), the Company does not: (i) respond to my request, or (ii) grant
          my request, the Company will then begin to pay to me, effective from
          and after the earlier of either: (a) the denial of my request by the
          Company, or (b) the fifteenth (15th) day after my written request was
          received by Company, my base compensation then in effect, with the
          same frequency with which I was being paid during the last month of my
          employment by the Company (the "Continuation Payments"), subject to
          the following limitations: (i) the Continuation Payments will cease
          upon the earlier to occur of (a) the day I start working for an entity
          not covered by this Agreement, (b) twelve months after the last day of
          my employment by the Company, (c) my violation of any of the terms and
          conditions of my Non-Disclosure and Developments Agreement or this
          Agreement, (e) NaviSite grants a subsequent written request I make to
          the Company to permit me to work for an entity covered by this
          Agreement or (f) the Company voluntarily waives my compliance with the
          provisions of paragraphs 1.(a)-1.(e) of this Agreement.

     (g)  In the event my employment by NaviSite is terminated for Cause, as
          defined below, the provisions of paragraph 1.(f) shall be null and
          void, shall not apply and shall have no force and effect. "Cause"
          means my willful and intentional engaging in conduct that is
          demonstrably and materially injurious to the Company, my willful and
          intentional breach of my fiduciary obligations as an officer of the
          Company, my willful and intentional refusal to perform my legal duties
          with the Company after instruction by the Chief Executive Officer or
          the Board of Directors to do so or my conviction of, or the entry of a
          pleading of guilty or nolo contender to any crime involving moral
          turpitude or any felony.



     (a)  I hereby represent that, except as I have previously disclosed in
          writing to the Company, I am not bound by the terms of any agreement
          with any previous employer or other party to refrain from using or
          disclosing any trade secret or confidential or proprietary information
          in the course of my employment or consulting relationship with the
          Company or to refrain from competing, directly or indirectly, with the
          business of such previous employer or any other party. I further
          represent that my performance of all the terms of this Agreement and
          as an employee or consultant of the Company does not and will not
          breach any agreement to keep in confidence proprietary information,
          knowledge or data acquired by me in confidence or in trust prior my
          employment or consulting relationship with the Company, and I will not
          disclose to the Company or induce the Company to use any confidential
          or proprietary information or material belonging to any previous
          employer or others.

     (b)  I agree to notify any prospective employer of the existence of this
          agreement and to furnish a copy hereof (and the Company may also
          furnish a copy thereof) to such employer. I acknowledge that I have
          read and signed the Non-Disclosure and Developments Agreement provided
          to me by the Company and delivered an executed copy to the Company.


     I acknowledge and agree that this Agreement does not constitute a contract
of employment and does not imply or otherwise constitute an agreement that the
Company will continue my employment or consulting relationship for any period of
time.  Nothing in this agreement alters the "at-will" nature of my employment
with the Company.


     (a)  NO CONFLICT. I represent that my execution and performance of this
          Agreement does not and will not conflict with or breach the terms of
          any other agreement by which I am bound.

     (b)  ENTIRE AGREEMENT. This Agreement supersedes all prior agreements,
          written or oral, between me and the Company relating to the subject
          matter of this Agreement, provided that nothing herein shall limit my
          obligations under any non-disclosure and


          developments agreement which I may enter with the Company. This
          Agreement may not be modified, changed or discharged in whole or in
          part, except by an agreement in writing signed by me and the Company.
          I agree that any change or changes in my duties, salary or
          compensation after the signing of this Agreement shall not affect the
          validity or scope of this Agreement.

     (c)  INTERPRETATION. If any restriction set forth in Section 2 is found by
          any court of competent jurisdiction to be unenforceable because it
          extends for too long a period of time or over too great a range of
          activities or over too broad a geographic area, it shall be
          interpreted to extend only over the maximum period of time, range of
          activities or geographic area as to which it may be enforceable.

     (d)  SEVERABILITY. The invalidity or unenforceability of any provision of
          this Agreement shall not affect or impair the validity or
          enforceability of any other provision of this Agreement.

     (e)  WAIVER. No delay or omission by the Company in exercising any right
          under this Agreement shall operate as a waiver of that or any other
          right. A waiver or consent given by the Company on any one occasion is
          effective only in that instance and shall not be construed as a bar
          to, or waiver of any, right on any other occasion.

     (f)  ACKNOWLEDGMENT AND EQUITABLE REMEDIES. I acknowledge that the
          restrictions contained in this Agreement are necessary for the
          protection of the business and goodwill of the Company and consider
          the restrictions to be reasonable for such purpose. I agree that any
          breach of this Agreement is likely to cause the Company substantial
          and irrevocable damage and that a breach of Section 2 would entail
          inevitable wrongful use or disclosure of the Company's proprietary and
          confidential information, and therefore, in the event of any breach of
          this Agreement, I agree that the Company, in addition to such other
          remedies which may be available, shall be entitled to specific
          performance and other injunctive relief without posting a bond.

     (g)  SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure
          to the benefit of both parties and their respective successors and
          assigns, including any corporation or entity with which or into which
          the Company may be merged or otherwise combined or which may succeed
          to its assets or business, provided however that the obligations of
          the employee or contractor are personal and shall not be assigned by
          the employee or contractor.

     (h)  GOVERNING LAW, FORUM AND JURISDICTION. This Agreement shall be
          governed by and construed as a sealed instrument under and in
          accordance with the laws of the Commonwealth of Massachusetts, without
          regard to conflicts of law provisions.


     (i)  CAPTIONS. The captions of the sections of this Agreement are for
          convenience of reference only and in no way define, limit or affect
          the scope or substance of any section of this Agreement.


     WITNESS our hands and seals:

                                      NAVISITE, INC.

Date: January 18, 2001                By: /s/ Leslie Detellis
      ----------------                    ------------------------------
                                              Leslie Detellis
                                          Please print name and title

Date: January 18, 2001                    /s/ John B. Muleta
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                                          Employee signature