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Employee Non-Compete Agreement

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					An employee non-compete agreement is a legal instrument under which an employee
agrees to not pursue a similar profession or trade in competition against the employer.
The employee is waiving the rights to pursue a job within a particular geographic area
for a period of time with the employer's competitors. The agreement can also waive an
employee’s rights to compete with the employer in ways such as that of a contractor,
shareholder, partnership, consulting, self-employment, etc. This form contains both
standard clauses and opportunities for the use of optional terms and conditions making
it fully customizable to fit the needs of the contracting parties.
               EMPLOYEE NON-COMPETE AGREEMENT
 THIS NON-COMPETE AGREEMENT (hereinafter the “Agreement”), effective as of
 __________ day of __________, _____, (hereinafter the “Effective Date”), between
 ___________________, a company organized and existing under the laws of the state of
 __________________ (hereinafter “Company”), and ________________________, residing at
 __________________________________________ [ADDRESS] (hereinafter “Employee”).

 RECITALS

 I.     WHEREAS Employee has been offered employment by Company for the position of
        _______________ [TITLE/DESCRIPTION] and has entered into an agreement (the
        “Employment Agreement”);

II.     WHEREAS Parties deem it in their respective interests to enter into an agreement
        providing the obligation of non-compete for Employee.


 WITNESSETH

        In consideration of the mutual promises and agreements contained herein, and for other
        good and valuable consideration, the receipt of which is hereby acknowledged, the parties
        hereto agree as follows:

 1.     COVENANT NOT TO COMPETE

        Employee hereby agrees that, during the term of employment under the Employment
        Agreement and for a period of one (1) year thereafter, whether with or without good
        cause or for any or no cause, at the option either of Company or Employee, with or
        without notice, Employee will not compete with Company and its successors and assigns,
        without the prior written consent of Company. Employee shall not:

 1.1.   alone, with and/or through others, be, become, or function as an officer, director,
        employee, owner, corporate affiliate, salesperson, co-owner, partner, trustee, promoter,
        founder, technician, engineer, analyst, employee, agent, representative, distributor, re-
        seller, sub licensor, supplier, investor or lender, consultant, advisor or manager of or to,
        or otherwise acquire or hold any interest in or otherwise engage in the provision of
        services to, any person or entity that engages in a business that is Directly Competitive
        (as defined below); provided, however, that Employee may work exclusively for a
        division, entity or subgroup of such a business if the division, entity or subgroup is not
        Directly Competitive; or
 1.2.   Authorize Employee’s name to be used in connection with a business that is Directly
        Competitive;

        For purposes of this Agreement, “Directly Competitive” means developing,
        manufacturing, providing, marketing, distributing, or otherwise commercially exploiting


 © Copyright 2013 Docstoc Inc.                                                             1
       any products, services, or technology that compete with Company’s products, services or
       technology in existence as of the Effective Date or the foregoing products, services or
       technology as such may be developed, enhanced, or modified by Company after the
       Effective Date.

1.3.   engage in or participate in, directly or indirectly, any business conducted under any name
       that shall be the same as or similar to the name of Company or any trade name used by it
       that is (i) Directly Competitive (or indirectly ) with the business of Company or (ii)
       engaged in any related activity where the use of such name is reasonably likely to result
       in confusion; and

1.4.   transfer, sell, assign, pledge, hypothecate, give, create a security interest in or lien on,
       place in trust (voting or otherwise), or in any other way dispose of more than one percent
       (1%) of total outstanding shares of Company as of the date of said disposition in one or a
       series of related transactions directly owned of record by Employee to any person which
       is competitive with any significant aspect of the business of Company, which, measured
       by revenue generated, accounts at least ten percent (10%) of Company's business.

2.     LIMITED GEOGRAPHIC SCOPE

2.1.   This Agreement shall cover Employee’s activities in every part of the Territory in which
       Employee may conduct business during the term of the Employment Agreement.
       “Territory” shall mean (i) all counties in the State of __________________________, (ii)
       all other states of the United States of America and (iii) all other countries of the world;
       provided that, with respect to clauses (ii) and (iii) in this paragraph, Company derives at
       least __________ [AMOUNT IN WORDS] percent (__%) [AMOUNT IN NUMERALS]
       of its gross revenues from such geographic area prior to the date of the expiration or
       termination of the Agreement.

3.     VIOLATION OF THIS AGREEMENT

3.1.   In the event Employee does not comply with the terms of this Agreement, Company
       reserves the right to discharge Employee as an employee. Furthe
				
DOCUMENT INFO
Description: An employee non-compete agreement is a legal instrument under which an employee agrees to not pursue a similar profession or trade in competition against the employer. The employee is waiving the rights to pursue a job within a particular geographic area for a period of time with the employer's competitors. The agreement can also waive an employee’s rights to compete with the employer in ways such as that of a contractor, shareholder, partnership, consulting, self-employment, etc. This form contains both standard clauses and opportunities for the use of optional terms and conditions making it fully customizable to fit the needs of the contracting parties.
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