Recently the idea that protection of referral sources could justify enforcement of a covenant not to compete
was successfully challenged in Florida Hematology & Oncology v.
'concerning or in any way relating' to the services offered by [the defendant], the confidentiality agreement amounts in effect to a post-employment covenant not to compete
which is completely unrestricted in duration or geographical scope.").
Accordingly, the court held that the "Cost Sharing" provision was not a covenant not to compete
. The court did not subject it to strict scrutiny as to reasonableness and public policy as would be the case with a covenant not to compete
It is almost certain that a covenant not to compete
in excess of five years will be struck down.
The parties may allocate the purchase price between assets comprising the personal goodwill and the covenant not to compete
* any covenant not to compete
or similar arrangements; and
Also in 1980, Howard entered into an employment agreement and a covenant not to compete
with Howard Corp.
By shifting the purchase price from the assets to the covenant not to compete
, the taxpayer paid less tax and the acquirer was entitled to greater early tax deductions.
The buyer insisted that the couple sign a covenant not to compete
as a supplement to the sales agreement.
Likewise, the appraiser should assume that a covenant not to compete
exists and therefore not discount the value for reliance of the business on the personal attributes of the controlling shareholder.
The latter penalty relates to any contracts omitted by the taxpayer, such as a covenant not to compete
, which are required to be listed.
These assets could not be considered to be owned by MIC because the father never entered into a covenant not to compete
or any other agreement with MIC that would result in a transfer of rights in those assets to MIC.