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COLOR BY PERGAMENT, INC. v. O'HENRY'S FILM WORKS, INC.

278 A.D.2d 92 (2000)

717 N.Y.S.2d 573

COLOR BY PERGAMENT, INC., Appellant, v. O'HENRY'S FILM WORKS, INC., et al., Respondents.

Appellate Division of the Supreme Court of the State of New York, First Department.

Decided December 14, 2000.

In 1983, plaintiff Color by Pergament, Inc. (Color),1 executed a shareholders' agreement with its then president (Jeffrey Sinaw), and Mr. Henry Pergament. The agreement contained an arbitration clause, which directed, as relevant, that Mr. Pergament "shall not, directly or indirectly, as shareholder, director, officer, employee, consultant, agent or in any other capacity, compete with the business of the Corporation. For the purpose of this agreement...

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