A Non-Compete Agreement is a legal contract in which an employee agrees not to enter into competition with the employer during or after the employment period. It ensures that the employee will not use knowledge gained during employment to engage in business activities that could be detrimental to the company. This type of agreement is crucial for protecting a company’s confidential information and maintaining its competitive edge by restricting the employee’s ability to work in similar industries for a specified period within a certain geographic region.
NON-COMPETE AGREEMENT
This Agreement is made as of [DATE], by and between [Party 1 Name] registered in [COUNTRY OF REGISTRATION] with the company number [COMPANY NUMBER] and registered office at [Company Address], hereinafter referred to as “Party The Company”, and [Party 2 Name, Individual], hereinafter referred to as “The Employee” (jointlyreferredto as the “Parties”).
BACKGROUND
A. The Employee is or will be employed by the Company, and during such employment, will have access to the Company’s confidential and proprietary information.
B. To protect its interests, the Company requires the Employee to agree to certain restrictions during and after the employment period.
Non-Competition Obligation
1- The Employee agrees not to engage, directly or indirectly, in any business activity that competes with the business of the Company during the employment term and for a period of [TIME] following the termination of employment unless terminated without cause.
Restricted Territory:
2- The Employee shall not engage in any competitive activities within a [MILES] mile radius of the Company’s primary business location.
Confidentiality:
3- The Employee acknowledges that they will have access to proprietary or confidential information of the Company. The Employee agrees not to disclose or use this information, except for the benefit of the Company, both during and after the term of employment.
Reasonableness:
4- The restrictions set forth in this Agreement are considered by the Parties to be reasonable in the context of their business relationship and the nature of their respective activities. The restrictions aim to protect the legitimate commercial interests of the Company without unduly restricting the Employee’s ability to seek employment or engage in business post-employment.
Enforcement:
5- If the Employee breaches or threatens to breach any provision of this Agreement, the Company shall be entitled to seek injunctive relief, in addition to any other remedies available at law or in equity.
Restraint of Trade:
6- Any non-compete clause contained in this Agreement shall be reviewed in light of the doctrine of restraint of trade. A clause may be unenforceable if it imposes an unreasonable restriction on the Employee.
Monetary Damages for Breach:
7- In the event of a breach or threatened breach of this Agreement by the Employee, the Company shall be entitled to monetary damages in addition to any injunctive relief or other remedies available at law or in equity. The specific amount of monetary damages shall be [AMOUNT], which both parties acknowledge as a reasonable estimation of the Company’s harm from the Employee’s breach. This amount does not preclude the Company from seeking additional damages should the actual harm to the Company exceed this estimated amount.
Dispute Resolution:
8- Any disputes arising out of this Agreement shall be resolved through arbitration in the [COUNTRY OF DISPUTE RESOLUTION], in accordance with the rules of the [SPECIFY ARBITRATION BODY, e.g., “London Court of International Arbitration (LCIA)”].
Governing Law:
9- This Agreement is governed by and construed in accordance with the laws of the [COUNTRY OF GOVERNING LAW].
Amendments:
10- Any modifications to this Agreement must be in writing and signed by both Parties.
Entire Agreement:
11- This Agreement represents the entire understanding between the Parties and supersedes all prior agreements, whether written or oral.
IN WITNESS WHEREOF, the parties hereto have executed this Non-Compete Agreement as of the date first above written.
The Company
[NAME OF THE COMPANY]
Signature: __________________________
Full Name:
Address:
Date:
Employee
[NAME OF THE EMPLOYEE]
Signature: __________________________
Full Name:
Address:
Date:
