Similar to the 45 day stipulation above, clauses 3.A.i and 3.A.ii are meant to prevent Founders from cheating the system.
Clause 3.A.i is meant to prevent a Founder from starting a new (identical) company that is not part of the Equity Collective, thereby cheating their Local Leaders, Mentors, and the Founder Institute. We would only use this clause if the new company was identical or very similar in nature to the company you formed in the program.
Similarly, clause 3.A.ii is meant to prevent a Founder from having a friend or other intermediary form a new business or entity with the purpose of circumventing the agreement and obligations, once again cheating their Local Leaders, Mentors, and the Founder Institute.
However, please note that as of EOY 2021, in the history of FI (since 2009) and working with tens of thousands of Founders we have only exercised these clauses one time.