agreement with a former employee. The matter is before the court now on plaintiff's motion for preliminary injunction. Defendants are Michael J. McNichol, the former employee, and John F. Scanlan, Inc., McNichol's present employer. After hearing and upon pleadings and proof, the court makes the following
FINDINGS OF FACT
1. Plaintiff, American Air Filter Company, Inc. (AAF), is a Delaware corporation having its principal place of business in Louisville, Kentucky.
2. Defendant Michael J. McNichol (McNichol) is a citizen and resident of the Commonwealth of Pennsylvania.
3. Defendant John F. Scanlan, Inc. (Scanlan) is a Pennsylvania corporation having its principal place of business in Philadelphia, Pennsylvania.
4. AAF is engaged in the manufacture and sale of air cleaning, air moving and air conditioning equipment.
5. AAF's Replacement Products Division manufactures and sells replacement filtering media used in equipment manufactured by AAF and by its competitors.
6. Until about October 1970, AAF sold its replacement filters through independent agents and brokers on a commission basis. In about October 1970, AAF began to set up its own sales force to sell replacement filters in the greater Philadelphia area which consists of Eastern Pennsylvania, a portion of New Jersey and the state of Delaware.
7. Defendant Scanlan has been in the air filtration business in the Philadelphia area since 1949. It sells and distributes both original air cleaning, air moving and air conditioning equipment and the replacement filtering media for such equipment.
8. For a number of years Scanlan has been the largest seller (its sales constituting substantially more than 50%) in the Philadelphia area of original air filtration equipment.
9. Scanlan has maintained records of all installations for which it has sold original air filtration equipment and of all installations for which it had lost out to a competitor on original equipment. Scanlan has had such information available to it as sources of replacement sales.
10. Since the mid-1950's Scanlan has sold replacement filters produced by several manufacturers, including Cambridge Filter Corporation, a direct competitor of AAF in the manufacture of original air filtration equipment and replacement filters.
11. AAF's Philadelphia office and Scanlan are in direct competition with each other.
12. Scanlan employs 19 salesmen who sell both original air filtration equipment and replacement filters and two salesmen who sell replacement filters only.
13. AAF hired its first salesman (George Franz) in the Philadelphia area in the early part of 1971. Two more salesmen were hired by AAF at the beginning of February 1972, McNichol being one of the two.
14. On the day he entered his employment with AAF (February 1, 1972), McNichol signed a written employment agreement. The agreement contained the following paragraph:
"6. The EMPLOYEE agrees that for a period of two years after termination of its (sic) employment with AAF, the EMPLOYEE will not engage either on its (sic) own behalf or on behalf of any other person, firm, corporation or other entity, either directly or indirectly, in any competitive business located or carried on within the Territory above described or take any action whatsoever which may disturb existing business relations of AAF with any person, firm or corporation with whom the EMPLOYEE came in contact as a representative of AAF."