Draft a non-compete clause that protects your delicious donuts (and the income stream they provide) and would be upheld and enforced by a court.

Besides
illegal subject matter, contracts can be illegal by attempting to reach too
far. A non-compete clause in an
employment contract is a prime example.
Implied in its title, a non-compete clause mandates an employee not
compete with his or her employer. To be
enforceable, the clause must have a nexus in protecting trade secret
information—any sort of confidential business information that provides a
competitive advantage. Additionally, the
clause’s parameters must go only as far as reasonably necessary in both time
and geographic scope.

Assume you
are a partner in a bakery in Bexley, Ohio that specializes in both traditional
and unique donuts (all equally delicious!).
The business has grown quickly in its first four years, and now sells
its donuts to stores and restaurants in Ohio, Indiana, and Kentucky. Natalie has applied for a management position
and appears to be the perfect candidate.
She has five years experience as a food wholesaler and a reputation as a
superb amateur pastry chef. Natalie
would assist in selling existing products, analyzing the market for possible
new products, and creating such new products.
Natalie would work with company bakers, salespersons, and customers—just
about everyone.

Draft a
non-compete clause that protects your delicious donuts (and the income stream
they provide) and would be upheld and enforced by a court. The clause should acknowledge the trade
secret information to which Natalie would have access that is at the heart of
the clause’s rationale (4 points).
The clause should also set the parameters of Natalie’s future employment,
addressing both duration (4 points) and geographic scope (4
points).

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