I posted in the Speedway, Level 2 about our situation: essentially my father and I will be employees at a tax preparation firm that he has worked for the past couple years, however, he has been able to run a small side business while working there due to a verbal agreement with the owner(someone he's known for 30yrs) and our plan is for me to work one season and learn about that business, while further building our own on the side with my wife also working on building our side business.
Until this year my dad had never needed to sign a non-compete, the wife(the REAL owner) had tried before, but the husband(the WORKER) had always stepped in and said it's ok if my dad does not sign.
Either way, the only clauses that concern me in regards to our business are listed below. After discussing it with them it seems that "Conflict of Interest" simply means that we do not work with any of our side clients while we're at their office and likewise, do not utilize any of their resources such as tax prep software(we have our own anyways) for use in our business.
It does not mean that we are not allowed to work and expand our side business.
As for "Non-Solicitation", this means that we cannot literally siphon clients from them and does not bar us from marketing outside of their office to potential clients in the same local market as theirs.
However, I would like to have a business contract attorney review these clauses below to make sure.
If anyone in the Phoenix Area has any referrals please let me know, likewise if you are not in the area, but know of some good criteria I can use to find a good business contract attorney I'd also appreciate it.
Thanks in advance!
PS, here's the exact clauses from the contract:
Conflict of Interest
19. During the term of the Employee's active employment with the Employer, it is understood and agreed that any business opportunity relating to or similar to the Employer's actual or reasonably anticipated business opportunities (with the exception of personal investments in less than 5% of the equity of a business, investments in established family businesses, real estate, or investments in stocks and bonds traded on public stock exchanges) coming to the attention of the Employee, is an opportunity belonging to the Employer. Therefore, the Employee will advise the Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer, which consent will not be unreasonably withheld.
20. During the term of the Employee's active employment with the Employer, the Employee will not, directly or indirectly, engage or participate in any other business activities that the Employer, in its reasonable discretion, determines to be in conflict with the best interests of the Employer without the written consent of the Employer, which consent will not be unreasonably withheld.
Non-Solicitation
21. The Employee understand and agrees that any attempt on the part of the Employee to induce other employees or contractors to leave the Employer's employ, or any effort by the Employee to interfere with the Employer's relationship with its other employees and contractors would be harmful and damaging to he Employer. The Employee agrees that during the Employee's term of employment with the Employer and for a period of two (2) years after the end of that term,
the Employee will not in any way, directly or indirectly:
a. Induce or attempt to induce any employee or contractor of the Employer to quit
employment or retainer with the Employer;
b. Otherwise interfere with or disrupt the Employer's relationship with its employees and contractors;
c. Discuss employment opportunities or provide information about competitive employment to any of the Employer's employees or contractors; or
d. Solicit, entice, or hire away any employee or contractor of the Employer for the purpose of an employment opportunity that is in competition with the Employer.
22. This non-solicitation obligation as described in this section will be limited to employees or contractors who were employees or contractors of the Employer during the period that the Employee was employed by the Employer.
23. During the term of the Employee's active employment with the Employer, and for two (2) years thereafter, the Employee will not divert or attempt to divert from the Employer any business the Employer had enjoyed, solicited, or attempted to solicit, from its customers, prior to termination or expiration, as the case ay be, of the Employee's employment with the Employer.
Until this year my dad had never needed to sign a non-compete, the wife(the REAL owner) had tried before, but the husband(the WORKER) had always stepped in and said it's ok if my dad does not sign.
Either way, the only clauses that concern me in regards to our business are listed below. After discussing it with them it seems that "Conflict of Interest" simply means that we do not work with any of our side clients while we're at their office and likewise, do not utilize any of their resources such as tax prep software(we have our own anyways) for use in our business.
It does not mean that we are not allowed to work and expand our side business.
As for "Non-Solicitation", this means that we cannot literally siphon clients from them and does not bar us from marketing outside of their office to potential clients in the same local market as theirs.
However, I would like to have a business contract attorney review these clauses below to make sure.
If anyone in the Phoenix Area has any referrals please let me know, likewise if you are not in the area, but know of some good criteria I can use to find a good business contract attorney I'd also appreciate it.
Thanks in advance!
PS, here's the exact clauses from the contract:
Conflict of Interest
19. During the term of the Employee's active employment with the Employer, it is understood and agreed that any business opportunity relating to or similar to the Employer's actual or reasonably anticipated business opportunities (with the exception of personal investments in less than 5% of the equity of a business, investments in established family businesses, real estate, or investments in stocks and bonds traded on public stock exchanges) coming to the attention of the Employee, is an opportunity belonging to the Employer. Therefore, the Employee will advise the Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer, which consent will not be unreasonably withheld.
20. During the term of the Employee's active employment with the Employer, the Employee will not, directly or indirectly, engage or participate in any other business activities that the Employer, in its reasonable discretion, determines to be in conflict with the best interests of the Employer without the written consent of the Employer, which consent will not be unreasonably withheld.
Non-Solicitation
21. The Employee understand and agrees that any attempt on the part of the Employee to induce other employees or contractors to leave the Employer's employ, or any effort by the Employee to interfere with the Employer's relationship with its other employees and contractors would be harmful and damaging to he Employer. The Employee agrees that during the Employee's term of employment with the Employer and for a period of two (2) years after the end of that term,
the Employee will not in any way, directly or indirectly:
a. Induce or attempt to induce any employee or contractor of the Employer to quit
employment or retainer with the Employer;
b. Otherwise interfere with or disrupt the Employer's relationship with its employees and contractors;
c. Discuss employment opportunities or provide information about competitive employment to any of the Employer's employees or contractors; or
d. Solicit, entice, or hire away any employee or contractor of the Employer for the purpose of an employment opportunity that is in competition with the Employer.
22. This non-solicitation obligation as described in this section will be limited to employees or contractors who were employees or contractors of the Employer during the period that the Employee was employed by the Employer.
23. During the term of the Employee's active employment with the Employer, and for two (2) years thereafter, the Employee will not divert or attempt to divert from the Employer any business the Employer had enjoyed, solicited, or attempted to solicit, from its customers, prior to termination or expiration, as the case ay be, of the Employee's employment with the Employer.
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