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Covenants Not to Compete
Boyd W. Shepherd, D.D.S., J.D.
Covenant = Promise = Contract
This is usually a restrictive agreement that states the length of time and/or the area
(square miles or radius) in which the associate may not practice dentistry should the
associateship terminate.
In negotiating the terms of the covenant, the associate should ask himself or herself this
question: "Is this opportunity so great that I would contract away my now-existing right to open
my own practice next door?"
The Host/Employer, on the other hand, is concerned about the potential loss of patients to
the new associate who may leave after six months and yet still enjoy the benefit of having access
to the patient database of the Host dentist, not to mention those who will follow the assosciate for
whatever reason.
Again, the key is enforceability. The issue will revolve around
reasonableness of the covenant versus the potential interest of the associate in the practice in
question. Always assume that the covenant is enforceable, and negotiate its terms likewise.
Boyd W. Shepherd is licensed to practice law and dentistry in the state of Texas, and is a member
of the GHDS, TDA, and ADA.
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