K
KP
Guest
I work as a computer consultant (engineering, ERP, PDM software) full time for a company in Utah. I make money for my company by doing implementations of various software packages. I gave my resignation to them last week. In two weeks I start with another company in Idaho who does work similar to that of my current employeer. They will be sharing the same software service partner. I have stock options that I do not want to lose. The contract is governed by the state of Michigan. The non compete agreement I have states:
(A) Non-competition. A Shareholder shall not, either directly or indirectly, within Michigan, Utah, Arizona and/or California as an owner, manager, partner, shareholder, director, employee, independent contractor or in any other manner, or with any other individual or entity, directly or indirectly, render services similar to those provided by the Corporation to any person, company or other business entity, or to any existing customer, former customer or prospective customer or company ("Person") which could be construed to be in competition with the business of the Corporation at any time during the term of this Agreement and any renewal hereof and for the a period of two (2) years following the earlier of a sale by a Shareholder of his/her Stock, or the termination of any business relationship between a Shareholder and the Corporation for any reason.
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The common partner that both companies share is located in California.
Right now, my new employeer has agreed to be sensitive to this stock option agreement with my, soon to be, old emplorer.
As I go forward, I just need to make sure what are the lines I cannot not cross in order to assure that I retain my options.
Any information is greatly appreciated.
Does this restrictive of a contract generally hold up?
Can I still reside in Utah as long as I don't bill customers, "render services", in Utah or the other states mentioned?
If I reside outside of all the states mentioned, can I bill a customer who lives within one of the mentioned states as long as I am not physically in the state at the moment?
If I reside outsite of all the states mentioned, and never render services for a customer in the above states, am I safe, despite that fact that the services I will be rendering in other states are indeed "similar"?
Again, thank you very much!!
KP
(A) Non-competition. A Shareholder shall not, either directly or indirectly, within Michigan, Utah, Arizona and/or California as an owner, manager, partner, shareholder, director, employee, independent contractor or in any other manner, or with any other individual or entity, directly or indirectly, render services similar to those provided by the Corporation to any person, company or other business entity, or to any existing customer, former customer or prospective customer or company ("Person") which could be construed to be in competition with the business of the Corporation at any time during the term of this Agreement and any renewal hereof and for the a period of two (2) years following the earlier of a sale by a Shareholder of his/her Stock, or the termination of any business relationship between a Shareholder and the Corporation for any reason.
-----
The common partner that both companies share is located in California.
Right now, my new employeer has agreed to be sensitive to this stock option agreement with my, soon to be, old emplorer.
As I go forward, I just need to make sure what are the lines I cannot not cross in order to assure that I retain my options.
Any information is greatly appreciated.
Does this restrictive of a contract generally hold up?
Can I still reside in Utah as long as I don't bill customers, "render services", in Utah or the other states mentioned?
If I reside outside of all the states mentioned, can I bill a customer who lives within one of the mentioned states as long as I am not physically in the state at the moment?
If I reside outsite of all the states mentioned, and never render services for a customer in the above states, am I safe, despite that fact that the services I will be rendering in other states are indeed "similar"?
Again, thank you very much!!
KP