Non Solicitation and Non Compete Agreement A Non-Solicitation and Non-Compete Agreement restricts solicitation of clients or competition by employees or parties, specifying non-solicitation and non-compete terms, duration, and geographic limitations.
For the purposes of this Agreement, the following terms shall have the following meanings:
"Affiliate" means any entity that directly or indirectly controls, is controlled by, or is under common control with another entity.
"Business" means the business of the Company, including but not limited to the development, marketing, distribution, or provision of goods or services provided by the Company.
"Company" means [Insert Company Name], a [Insert State of Incorporation] corporation, its subsidiaries, and affiliates.
"Confidential Information" means any and all non-public information that is a trade secret under applicable law or information related to the Company's Business, including but not limited to, customer information, supplier information, know-how, trade secrets, financial information, and proprietary information of the Company.
"Employee" means the individual who is party to this Agreement and is an employee, contractor, or agent of the Company.
"Effective Date" means the date first set forth above.
"Restricted Period" means the period commencing on the Effective Date and continuing for the [Insert Time Duration] following the termination of the Employee's relationship with the Company for any reason whatsoever.
"Territory" means the geographic area within which the Employee conducted or supervised the conduct of the Company's Business during the last twelve (12) months of the Employee's relationship with the Company.
2.1. Prohibition on Solicitation of Clients
During the Restricted Period, the Employee shall not, directly or indirectly, solicit business from, or attempt to sell, license, or provide, competitive products or services to, any Client of the Company, whether for themselves or on behalf of any other person, business, or entity, where such solicitation relates to the Business.
2.2. Prohibition on Solicitation of Employees and Contractors
During the Restricted Period, the Employee shall not, directly or indirectly, (a) hire or attempt to hire any person who was an employee or contractor of the Company at any time during the twelve (12) months immediately preceding the termination of the Employee's relationship with the Company, or (b) solicit, induce, or attempt to induce any person who was an employee or contractor of the Company during such period to terminate or modify their relationship with the Company.
3.1. Prohibition on Competing with the Company
During the Restricted Period, the Employee shall not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation), engage, or participate in any capacity in any Competitive Business (as defined below) within the Territory. For purposes of this section, "Competitive Business" means any business that is engaged in a business that is directly or indirectly competitive with the Business.
4.1. Passive Investment
Notwithstanding any of the provisions of Sections 2 and 3, the Employee may hold not more than a one percent (1%) ownership interest in any entity engaged in a Competitive Business, provided that such ownership shall be solely as a passive investment and the Employee shall not participate in the management or control of the Competitive Business in any capacity.
4.2. Prior Written Consent
The non-solicitation and non-compete restrictions set forth in Sections 2 and 3 shall not apply to any activity that has been approved in writing by the Company prior to the commencement of such activity.
The Employee agrees that, during the Employee's employment or engagement with the Company and at all times following the termination of such employment or engagement, the Employee shall not disclose, release, transfer, or use any Confidential Information for any purpose whatsoever, other than as necessary to perform services for the Company or as required by law.
6.1. Injunctive Relief
In the event of any actual or threatened breach of any provision of Sections 2, 3, or 5 of this Agreement by the Employee, the Company shall be entitled to seek and obtain immediate injunctive relief, in addition to any other remedies at law or in equity, without the necessity of posting bond or other security.
6.2. Liquidated Damages
In the event that the Employee breaches any provision of Sections 2 or 3, the Company shall be entitled to recover from the Employee as liquidated damages, and not as a penalty, the amount of [Insert Amount] Dollars ($[Insert Amount]) for each such breach, in addition to any other remedies at law or in equity.
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the United States and the State of [Insert State]. Any disputes arising out of, relating to, or connected with this Agreement, shall be resolved by final and binding arbitration administered by the American Arbitration Association, under its Commercial Arbitration Rules in [Insert City and State]. The parties hereby waive any right to a trial by jury for the resolution of any dispute arising out of, relating to, or connected with this Agreement.
If any provision of this Agreement is held by a court of competent jurisdiction or arbitrator to be unenforceable for any reason, the remaining provisions hereof shall be unaffected and shall remain in full force and effect as if such unenforceable provision had not been included herein.
This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, of the parties in connection with the subject matter hereof.
This Agreement may not be amended, modified, or supplemented, in whole or in part, except by an agreement in writing signed by the parties hereto.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument."
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