Paragraph 6

(1)

In determining whether an agreement to which article 5 applies is an agreement to which the Act of 1976 applies by virtue of this Order, no account shall be taken of any relevant restriction–

(a)

which is accepted for a period not exceeding that permitted under paragraph (2) below; and

(b)

which limits the extent to which the person accepting the restriction may compete with the acquired enterprise, or may be engaged or interested in, disclose information to, or otherwise assist any business which so competes.

(2)

For the purpose of paragraph (1)(a) above, a permitted period is:–

(a)

a period of 5 years beginning with the date of the agreement; or

(b)

in the case of restrictions accepted by an individual who is to have a contract of employment with or a contract for the supply of services to the acquired enterprise, the purchaser, or a member of the same group as the purchaser, a period beginning with the date of the agreement and ending 2 years after the date of expiry or termination of the contract,

whichever ends the later.