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Non-Compete Agreement Between Employer and Employee

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Non-Compete Agreement Between Employer and Employee Powered By Docstoc
					This is an agreement that is entered into between a company and an employee that
restricts the employee?s ability to compete with the company. The agreement prohibits
the employee from directly competing with the company during the term of his or her
employment and for a certain time after the employment relationship has ended.
Additionally, this agreement is limited in geographic scope so that it will not be unfair to
the employee. This document should be used by small businesses or other entities that
want to limit competition from employees.
               EMPLOYEE NON-COMPETE AGREEMENT
 THIS NON COMPETE AGREEMENT (this “Agreement”), effective as of ____________, 20__
 (“Effective Date”), between ___________________, a company (the “Company”) organized and
 existing    under     the    laws   of   __________________       (Insert  State),   and
 ________________________ (the “Employee”), residing at _______________________(Insert
 Address).

 RECITALS

 I.     WHEREAS Employee has been offered employment by Company for the position of
        _______________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 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 ________ (____) year(s) thereafter (the “Restrictive
        Period”), whether 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. The 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
        any products, services or technology that compete with the Company’s products, services



 © Copyright 2013 Docstoc Inc.                                                             2
       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 name of the Company or any trade name
       used by it that is (i) Directly Competitive (or indirectly) with the business of the
       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 1% of total
       outstanding shares of the Company as of the date of said disposition in one or a series of
       related transactions directly owned of record by the Employee to any person which is
       competitive with any significant aspect of the business of the Company, which,
       measured by revenue generated, accounts at least 10% of the Company's business.

2.     LIMITED GEOGRAPHIC SCOPE

2.1.   This Agreement shall cover the Employee’s activities in every part of the Territory in
       which the 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, the Company derives at least ___ percent (__%) 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 the Employee does not comply with the terms of this Agreement, the
       Company reserves the right to discharge the Employee as an employee. Furthermore, the
       Company reserves the right to recover monetary damages from the Employee, and the
   
				
DOCUMENT INFO
Description: This is an agreement that is entered into between a company and an employee that restricts the employee?s ability to compete with the company. The agreement prohibits the employee from directly competing with the company during the term of his or her employment and for a certain time after the employment relationship has ended. Additionally, this agreement is limited in geographic scope so that it will not be unfair to the employee. This document should be used by small businesses or other entities that want to limit competition from employees.
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