Non-compete language

[Sarah Clark]

Hi again,

Michael and I were discussing non-compete clauses after our call today and I wanted to send along what was contained in my contract with HighQuest for our reference (I've pasted the clause below).

• For a period of 18 months after my employment ended it makes sense that I shouldn't solicit clients of HighQuest for my own; no problem there. Note: That gentleman - whose name I'm forgetting - from Conservis sat on our Soy and Grain Trade Summit advisory board, but I don't think we need to worry about that; Conservis was not a paying client.  Also, I think it would be perfectly okay for me to reach out to someone else at Land O Lakes, for example, but not specifically Carol Kitchen, "who I had contact with" while at HighQuest as the clause states.
• Regarding engaging in "either directly or indirectly, any consulting, employment or other business activity that competes with the Company." ... This is very fuzzy, especially because we're talking about "consulting" and not a particular service or product. However, if this was ever challenged by HighQuest I think it would be very difficult to prove I was actually competing. The consulting expertise that Catalyze Ventures provides is different from that which was provided by HighQuest Partners (i.e. food safety strategy, etc. etc.) 

Thoughts?

Sarah

Limitation on Other Activities:

(a)            I agree that while I am employed by the Company, I will not, without the Company’s expressed written consent, engage in, either directly or indirectly, any consulting, employment, or other business activity that competes with the Company.

 

(b)            I agree that for a period of eighteen (18) months following the termination of my employment with the Company, I will not, without prior written permission not to be unreasonably withheld by the Company, solicit customers of the Company who I had contact with or engage in, either directly or indirectly, any consulting, employment or other business activity that competes with the Company.

[Michael Reading]

Thanks Sarah! I really like your analysis here and it makes a lot of sense to me. I'm meeting with the SCORE legal team on 8.2 and can also run by ideas at that time with them.

-M

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Michael L. Reading
Master of International Business - The Fletcher School | Tufts University

Climate CoLab Fellow -  Center for Collective Intelligence | MIT

+1.612.860.3099

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[Sarah Clark]

Great! SCORE is such a great resource!

SC

[Michael Reading]

Hi team,

Art, is there anything similar for you with the World Bank?

-Michael

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Michael L. Reading
Master of International Business - The Fletcher School | Tufts University

Climate CoLab Fellow -  Center for Collective Intelligence | MIT

+1.612.860.3099

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[Artavazd Hakobyan]

I have no non-compete commitments, and frankly I think we are making big deal of a lot of unnecessary stuff. Sorry about this strong push back. People change jobs, they open and close companies all the time. I don't think any of us have done anything in the past that would get us sued. 

If you want to do this, you have to be prepared to take risk and sacrifice something. There cannot be two good things at the same time. We could do better by prioritizing our steps, and frankly I don't think any non-compete issues are main priorities. We don't even have one client now. let's get a client and start working with them before thinking about non-compete stuff.

[Michael Reading]

Hi all,

Art, thanks for your update and I can appreciate your frustration. That said, I disagree that this is unnecessary. When I met with the advisors at SCORE, this was one of their first questions for me. But it looks like we don't face major snags.

-Michael

--
Michael L. Reading
Master of International Business - The Fletcher School | Tufts University

Climate CoLab Fellow -  Center for Collective Intelligence | MIT

+1.612.860.3099

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[Artavazd Hakobyan]

It maybe necessary but no essential for us

Sent from my iPhone