Morley Shafron sold his Vancouver-based insurance agency business in 1987 for $700,000 in cash and shares. He became a shareholder and director of the surviving company and agreed to provide management services. The agreement included a non-competition clause that would take effect if he left the company. The clause would prohibit him from engaging in the insurance brokerage business “within the metropolitan City of Vancouver” for a period of three years after departure.
The business changed hands three and a half years later. Morley signed another employment agreement with essentially the same non-competition clause, although he would be dropped from virtually all aspects of management. This agreement was renewed in 1993 and 1998, with the last agreement expiring December 31, 2000.