I hesitate to give an answer about the interpretation of a contract without being able to read the entire document. Contract law says that the document must be read in its entirety and enforced according to its terms. I suggest you schedule a consultation with an employment lawyer to review the contract and educate yourself about the pros/cons, and your options. Good luck.
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It sounds like this is a non-compete clause. Non-compete clauses are standard in some fields and for some positions. They should be narrowly drawn to protect the employer, it's clients and their interests. It is not uncommon for employers to have overly broad non-compete clauses in contracts. Sometimes these clauses are not enforceable at all. You would need to see a local employment lawyer and have that lawyer review the contract to determine whether or not this clause would be enforceable, and if it is, how it would affect your future employment after you leave the company.
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