Employee acknowledges that, during employment or in connection with providing services to 5STAR, Employee may access, receive, observe, possess, create, develop, compile, or become aware of confidential, proprietary, sensitive, or trade secret information belonging to 5STAR.
Employee agrees to protect such information during employment and after employment ends, regardless of the reason for separation.
Definition of Confidential Information
For purposes of this Agreement, “Confidential Information” means all confidential, proprietary, sensitive, business, operational, financial, technical, employee, client, vendor, legal, strategic, or trade secret information, whether written, oral, electronic, visual, or otherwise, that is delivered by or on behalf of 5STAR, accessed by Employee, obtained by Employee, created by Employee, or learned by Employee in the course of employment or service to 5STAR.
Confidential Information includes, without limitation:
• Client lists, client contacts, client preferences, client history, and client communications
• Client contracts, proposals, bids, pricing, discounts, margins, and rate sheets
• Staffing models, labor projections, scheduling processes, and workforce availability data
• Event plans, deployment plans, post orders, emergency procedures, and site-specific instructions
• Security procedures, incident reports, investigative materials, and risk management information
• Employee records, personnel files, payroll data, disciplinary records, benefits information, and compensation information
• Recruiting pipelines, applicant information, hiring processes, licensing information, and onboarding materials
• Vendor lists, subcontractor information, vendor pricing, and supplier relationships
• Financial information, profit margins, branch performance, budgets, forecasts, bank information, and accounting records
• Marketing plans, sales strategies, business opportunities, business development plans, and expansion plans
• Corporate records, meeting notes, internal communications, ownership information, and management discussions
• SOPs, policies, procedures, training programs, manuals, templates, checklists, and forms
• Software, data, technology, system configurations, dashboards, reports, databases, and analytics
• Celayix, Paycom, QuickBooks, Microsoft 365, SharePoint, FreePBX/UCP, phone system, and other system-related information
• Processes, inventions, know-how, methods, techniques, improvements, workflows, and operational systems
• Legal information, litigation materials, attorney communications, insurance information, claims information, and privileged materials
• Analyses, compilations, summaries, notes, studies, spreadsheets, reports, or records prepared by Employee or others that contain, reflect, summarize, or are derived from Confidential Information
• The existence, terms, and conditions of this Agreement
• Any information marked, identified, treated, or reasonably understood to be confidential, proprietary, sensitive, or trade secret information
For purposes of this Agreement, “5STAR” includes L.B.K. Investments Inc., d/b/a 5 STAR Event Services, and any parent, subsidiary, affiliate, related entity, successor, or assigned business unit that provides or owns Confidential Information.
Employee’s Use of Confidential Information
Employee shall use Confidential Information solely for legitimate business purposes related to Employee’s employment or assigned duties with 5STAR.
Employee shall not use Confidential Information for:
• Personal benefit
• Outside employment
• Side businesses
• Competitive activity
• Soliciting clients, employees, vendors, or subcontractors
• Assisting another company or person
• Any unauthorized purpose
• Any purpose after employment ends
Non-Disclosure Obligation
Employee shall keep all Confidential Information strictly confidential.
Employee shall not, directly or indirectly, disclose, share, copy, transmit, publish, distribute, upload, download, export, photograph, duplicate, remove, or otherwise communicate Confidential Information to any person or entity except as expressly authorized by 5STAR and only when necessary to perform Employee’s assigned duties.
Employee may disclose Confidential Information only to authorized 5STAR employees, representatives, advisors, attorneys, agents, or service providers who have a legitimate business need to know the information and who are subject to confidentiality obligations.
Employee is responsible for protecting Confidential Information from unauthorized access, disclosure, loss, theft, or misuse.
No Unauthorized Copying, Reverse Engineering, or Removal
Employee shall not:
• Copy Confidential Information except as necessary for authorized Company business
• Remove confidentiality, proprietary, or ownership markings
• Reverse engineer, decompile, disassemble, or attempt to derive source code, processes, formulas, methods, or systems from Confidential Information
• Transfer Confidential Information to personal email, personal cloud storage, personal devices, external drives, messaging apps, or unauthorized systems
• Use screenshots, photos, handwritten notes, exports, downloads, or other methods to retain Confidential Information outside approved Company systems
• Retain Company documents, data, files, or records after separation from employment
Exceptions to Confidential Information
Confidential Information does not include information that Employee can demonstrate through written records:
1. Is or becomes generally available to the public through no breach of this Agreement by Employee or anyone acting on Employee’s behalf;
2. Was lawfully known by Employee before disclosure by 5STAR, without restriction and without breach of any confidentiality obligation;
3. Was independently developed by Employee without use of, access to, or reference to 5STAR Confidential Information;
4. Was lawfully received from a third party who was not known by Employee to be under a confidentiality obligation to 5STAR; or
5. Is approved for release by 5STAR in a written authorization signed by an authorized Company representative.
The burden of proving that an exception applies rests with Employee.
Public Statements and Business Relationship Confidentiality
Unless required by law or authorized in writing by 5STAR, Employee shall not disclose to any unauthorized person or entity:
• That discussions, negotiations, employment-related matters, business arrangements, investigations, client issues, legal matters, or strategic plans are taking place, once took place, or are no longer taking place;
• The terms or conditions of any business relationship, client relationship, employment relationship, compensation arrangement, transaction, legal matter, or internal Company matter;
• Any information concerning Company leadership discussions, management decisions, employee matters, client issues, incidents, investigations, or confidential business plans.
Public disclosures include, without limitation, disclosures made through:
• Press releases
• Media statements
• Interviews
• Blogs
• Trade organizations
• Publications
• Websites
• Social media
• Messaging platforms
• Public forums
• Unauthorized third parties
Required Legal Disclosure
If Employee receives a subpoena, court order, civil investigative demand, governmental request, discovery request, or similar demand requiring disclosure of Confidential Information, Employee agrees to:
1. Promptly notify 5STAR in writing, unless legally prohibited from doing so;
2. Provide 5STAR with reasonable information regarding the request, including the nature, scope, deadline, and requesting party;
3. Cooperate with 5STAR’s reasonable efforts to seek a protective order, confidential treatment, or other appropriate protection;
4. Disclose only the portion of Confidential Information that Employee is legally compelled to disclose; and
5. Use reasonable efforts to ensure that any disclosed Confidential Information receives confidential treatment.
Protected Rights and Legal Exceptions
Nothing in this Agreement prohibits Employee from:
• Reporting possible violations of law to a government agency;
• Participating in a government investigation;
• Filing a charge or complaint with an administrative agency;
• Testifying truthfully under subpoena or court order;
• Communicating with law enforcement, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Department of Labor, the Texas Workforce Commission, or another government agency;
• Discussing wages, hours, or working conditions to the extent protected by applicable law;
• Exercising any legally protected rights.
Employee is not required to notify 5STAR before making reports or disclosures protected by law.
Trade Secret Protection
Employee acknowledges that certain Confidential Information may constitute trade secrets under applicable law.
Trade secret information may include, without limitation:
• Staffing databases
• Recruiting sources
• Client lists and client history
• Rate structures
• Margin models
• Bid formulas
• Scheduling methods
• Deployment models
• Security procedures
• Venue-specific operating procedures
• Labor forecasting methods
• Proprietary workflows
• Business development strategies
• Financial data
• Operational dashboards
• Training systems
• SOPs and proprietary processes
Employee shall protect trade secrets for as long as the information remains a trade secret under applicable law.
Ownership of Confidential Information
All Confidential Information is and shall remain the exclusive property of 5STAR.
Nothing in this Agreement grants Employee any ownership interest, license, title, intellectual property right, or other right in or to any Confidential Information, Company property, Company systems, Company materials, Company records, or Company work product.
Employee shall not claim ownership over any Confidential Information or materials developed, compiled, accessed, used, or created in connection with Employee’s work for 5STAR.
Return or Destruction of Confidential Information
Upon request by 5STAR, or upon separation from employment for any reason, Employee shall immediately cease using Confidential Information and, at 5STAR’s option, return or destroy all Confidential Information in Employee’s possession, custody, or control.
This includes, without limitation:
• Physical documents
• Electronic files
• Emails
• Text messages
• Notes
• Copies
• Excerpts
• Summaries
• Reports
• Spreadsheets
• Recordings
• Screenshots
• Photographs
• Downloads
• External drives
• Cloud-stored files
• Personal device files
• Personal email copies
• Printed materials
Within ten (10) days after receiving a request from 5STAR, Employee shall certify in writing that all Confidential Information has been returned or destroyed, except to the extent Employee is advised by counsel that destruction is prohibited by law.
No Representation or Warranty
Employee acknowledges that 5STAR does not make any representation or warranty as to the accuracy or completeness of any Confidential Information furnished or made available to Employee.
Employee shall not rely on Confidential Information for any purpose other than performing authorized Company duties.
Privileged and Protected Materials
To the extent any Confidential Information includes materials subject to the attorney-client privilege, attorney work-product doctrine, joint defense privilege, common interest doctrine, or any other applicable privilege or protection, Employee acknowledges and agrees that such information remains protected.
The disclosure of privileged or protected information to Employee for Company business purposes is not intended to waive, diminish, or impair any privilege or protection belonging to 5STAR.
Employee shall not disclose privileged or protected materials without written authorization from 5STAR or as required by law.
Data Security Obligations
Employee agrees to comply with all Company data security requirements, including but not limited to:
• Using approved Company systems for Company information
• Maintaining strong passwords
• Using multi-factor authentication when required
• Not sharing login credentials
• Securing devices and documents
• Reporting lost devices, suspected breaches, phishing attempts, or unauthorized access
• Avoiding use of personal accounts for Company business unless authorized
• Following Company retention and destruction requirements
• Protecting employee, client, payroll, financial, and operational information
Violation of data security requirements may result in disciplinary action, up to and including termination.
Remedies
Employee acknowledges that unauthorized use, disclosure, copying, retention, or misuse of Confidential Information may cause irreparable harm to 5STAR for which money damages may not be an adequate remedy.
In addition to any other remedies available at law or in equity, 5STAR may seek:
• Temporary restraining orders
• Temporary injunctions
• Permanent injunctions
• Specific performance
• Damages
• Attorneys’ fees
• Costs
• Return or destruction of information
• Any other relief available under applicable law
Employee agrees that 5STAR shall not be required to prove actual damages as a condition of seeking injunctive relief, to the extent permitted by law.
Employment Status
Nothing in this Agreement alters Employee’s at-will employment status.
Unless otherwise provided in a separate written agreement signed by an authorized Company representative, either 5STAR or Employee may terminate the employment relationship at any time, with or without cause, and with or without notice, subject to applicable law.
Survival
Employee’s obligations under this Agreement shall survive the end of employment.
Confidentiality obligations shall remain in effect for five (5) years from the effective date of this Agreement.
However, Employee’s duty to protect trade secrets shall continue for as long as the information qualifies as a trade secret under applicable law.
Sections concerning ownership, return or destruction of Confidential Information, remedies, privileged materials, protected rights, governing law, venue, jury waiver, and survival shall also survive termination of employment.
Severability and Reformation
If any term or provision of this Agreement is found by a court of competent jurisdiction to be invalid, unlawful, or unenforceable, the remaining terms and provisions shall remain in full force and effect.
Any invalid or unenforceable provision shall be modified, limited, or replaced by a valid and enforceable provision that most closely reflects the original intent of the parties and is enforceable under applicable law.
Assignment
Employee may not assign, delegate, or transfer any rights or obligations under this Agreement without the prior written consent of 5STAR.
5STAR may assign this Agreement to any parent, subsidiary, affiliate, successor, purchaser, merged entity, reorganized entity, or assignee.
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.
Governing Law and Venue
This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas, without regard to conflict of law principles.
The venue for any action arising out of or relating to this Agreement shall be the state or federal courts located in Harris County, Texas, unless 5STAR elects another proper venue or venue is otherwise required by applicable law.
Employee consents to the personal jurisdiction of such courts.
Jury Trial Waiver
To the fullest extent permitted by law, each party knowingly, voluntarily, irrevocably, and unconditionally waives any right to a jury trial in any claim, dispute, or cause of action arising out of or relating to this Agreement.
This waiver applies to any amendments, renewals, supplements, modifications, or disputes concerning this Agreement.
Entire Agreement
This Agreement constitutes the entire agreement between the parties regarding confidentiality, non-disclosure, proprietary information, and trade secret protection.
This Agreement supersedes all prior oral or written agreements, understandings, or representations concerning the same subject matter.
No amendment, modification, waiver, or supplement shall be binding unless in writing and signed by Employee and an authorized representative of 5STAR.
Counterparts and Electronic Signatures
This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one agreement.
Electronic signatures, scanned signatures, and signatures transmitted by electronic means shall have the same force and effect as original signatures.