457(f) aimed at creating a substantial risk of forfeiture is to include a
noncompetition clause in a terminating executive's employment agreement.
24) In that case, the departing employee's restrictive covenant contained both a customer nonsolicitation clause and a general
noncompetition clause.
The partnership's billing practices, he said, "place me at great risk, without personal benefit, and without an avenue to change these practices, therefore jeopardizing the validity of my employment contract with CVSA," including the
noncompetition clause.
In addition to the provision on termination, the contract also set forth a
noncompetition clause whereby the employee agreed not to enter into any competing insurance business and not to write any policies for any persons who were clients of the former employer.
But in denying TeamWorks' effort to block the AIDS/LifeCycle from taking place, California superior court judge David Yaffe ruled on January 14 that state law may invalidate the
noncompetition clause in TeamWorks' contract.
An absolute
noncompetition clause must be drafted carefully to cover a reasonable time period and geographic area.
to nullify the effect of a
noncompetition clause in his agent's agreement with the insurance company.
However, none of the agreements contained a
noncompetition clause.
The concession includes a significant
noncompetition clause prohibiting Canada from constructing or subsidizing a competing facility within 25 kilometers of the bridge;
In Miller, TC Memo 1993-55, Purchaser purchased all of the outstanding stock of a heating oil company (Target) for $105,000, under an agreement that included a
noncompetition clause.
Therefore, the courts don't recognize
noncompetition clauses or arguments that a former employee inevitably will reveal trade secrets (see "Inevitable Impediment," p.
For example,
noncompetition clauses, if narrowly drawn, can be used to prevent an employee from going to work for an association that is a direct competitor (e.
