Docstoc

Employee Non-Compete Agreement

Document Sample
Employee Non-Compete Agreement Powered By Docstoc
					This document sets forth an agreement between an employer and an employee
whereby the employee agrees to not pursue a similar profession or trade in competition
against the employer. This agreement prohibits the employee from working in the same
line of as the employer for a certain number of months after the employee?s term of
employment is terminated. This agreement also has a clause limiting the geographic
scope of the non-compete. 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 WITH
                            GEOGRAPHIC REGIONS

THIS NON-COMPETE AGREEMENT (hereinafter the “Agreement”), effective as of
_____________, 201__ (the “Effective Date”), between _______________ [Instruction: Insert
the name of the employer], a company organized and existing under the laws of
__________________ [Instruction: Insert name of state or country where the company was
incorporated and is doing business] (the “Company”), and ________________________
[Instruction: Insert name of the employee], residing at _______________________
[Instruction: Insert name of the city and state of the employee’s residence] (the
“Employee”), (hereinafter collectively referred to as the “Parties”).

RECITALS

I.     WHEREAS Employee has been offered employment by Company for the position of
_______________ [Instruction: Insert job title or description of employee's position] and has
entered into an agreement accepting said position (the “Employment Agreement”);

II.    WHEREAS Parties deem it in their respective interests to enter into an agreement
providing the obligation of non-compete for the 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 ______ [Instruction: insert number of months] months after termination of
the term of employment (the “Restrictive Period”), whether such termination is with or without
good cause or for any or no cause, at the option either of the Company or the Employee, with or
without notice, the Employee will not compete with the Company and its successors and assigns,
without the prior written consent of the Company. Specifically, it is agreed that the Employee
shall not: __________________________________________________________________
______________________________________________________________________________
______________________________________________________________
[Instruction and Warning: Describe specific activities that the parties agree that the
Employee will not engage in. NOTE: Different states have different standards, regarding
what is and is not a reasonable non-compete restriction. The general rule is: The longer
the time period of the non-compete restriction and the larger the area where the person
may not compete, the more likely a court is to rule that the non-compete clause is NOT
valid. If a company feels that it makes good business sense to require a non-compete



© Copyright 2013 Docstoc Inc.                                                          2
agreement, it should always do so in consultation with a lawyer who is familiar with local
labor/employment laws. Often, non-compete agreements are very fact-specific (e.g., the
type of work the employee will be doing; what sort(s) of confidential information that
employee will receive while working for the company; what job prospects he or she will
have if the non-compete clause is allowed to be enforced, etc. Therefore, unfortunately, it is
impossible to predict what restrictions will and will not be found to be valid or invalid.
Again, it is strongly encouraged that a company consult with qualified legal counsel before
relying on such a non-compete clause. Sections 1.1 through 1.4 below are examples of
restrictions that can be used.]

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
       any products, services or technology that compete with the 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 the 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
				
DOCUMENT INFO
Description: This document sets forth an agreement between an employer and an employee whereby the employee agrees to not pursue a similar profession or trade in competition against the employer. This agreement prohibits the employee from working in the same line of as the employer for a certain number of months after the employee?s term of employment is terminated. This agreement also has a clause limiting the geographic scope of the non-compete. 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.
Customize This Document Instantly download your personalized document Guided Fill-in-the-Blank Process
This document is also part of a package Employee Hiring Documents for your Business 31 Documents Included