Business

Non-Compete Agreement Template

An agreement that restricts a person from competing with a business for a set time and area after leaving.

What this template includes

✓Parties, background, and consideration
✓Non-compete restriction with duration and area
✓Non-solicitation of customers and employees
✓Confidentiality and reasonableness (blue-pencil) clause
✓Remedies and signatures

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Non-Compete Agreement Template

NON-COMPETE AGREEMENT

This Non-Compete Agreement (the "Agreement") is made on [DATE] between:

Company: [COMPANY NAME], located at [ADDRESS] ("Company"); and

Individual: [INDIVIDUAL NAME], of [ADDRESS] ("Individual").

1. BACKGROUND AND CONSIDERATION
In connection with the Individual's [employment / engagement / sale of business] with the Company, the Individual will have access to the Company's confidential information, customers, and goodwill. In exchange for [employment / payment / other consideration], the Individual agrees to the restrictions below, which are intended to protect the Company's legitimate business interests.

2. NON-COMPETE
For a period of [NUMBER] months after the end of the relationship, the Individual will not, directly or indirectly, own, manage, work for, or advise a business that competes with the Company's [DESCRIBE BUSINESS / PRODUCTS] within [GEOGRAPHIC AREA].

3. NON-SOLICITATION OF CUSTOMERS
During the same period, the Individual will not solicit or attempt to take away any customer or client of the Company with whom the Individual dealt or about whom the Individual learned confidential information.

4. NON-SOLICITATION OF EMPLOYEES
During the same period, the Individual will not solicit, hire, or encourage any employee or contractor of the Company to leave the Company.

5. CONFIDENTIALITY
The Individual will not use or disclose the Company's confidential information at any time, during or after the relationship.

6. REASONABLENESS
The Individual agrees that the restrictions above are reasonable in scope, duration, and area, and are necessary to protect the Company. If a court finds any restriction too broad, the Parties agree the court may reduce it to the extent needed to make it valid and enforceable, and the rest will remain in effect.

7. REMEDIES
A breach of this Agreement may cause harm that money alone cannot fully remedy. The Company is therefore entitled to seek injunctive relief in addition to any other remedies available at law.

8. GENERAL PROVISIONS
(a) Governing Law. This Agreement is governed by the laws of [STATE/COUNTRY]. Note: non-compete rules vary widely by jurisdiction, and some areas limit or ban them — have this reviewed locally before relying on it.
(b) Entire Agreement. This Agreement is the complete agreement between the parties and replaces any prior discussions, understandings, or agreements on this subject.
(c) Amendments. Any change to this Agreement must be in writing and signed by both parties.
(d) Severability. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full effect.
(e) Waiver. If a party does not enforce a provision, it does not give up its right to enforce that or any other provision later.
(f) Assignment. Neither party may assign or transfer this Agreement without the other party's prior written consent.
(g) Notices. Any notice under this Agreement must be given in writing (email is acceptable) to the other party.

IN WITNESS WHEREOF, the parties have signed this Agreement.

Company
Date: ____________
Name: [COMPANY NAME]
Title: [SIGNATORY TITLE]
Signature: ______________________

Individual
Date: ____________
Name: [INDIVIDUAL NAME]
Signature: ______________________

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Disclaimer: This template is provided for general informational purposes only and is not legal advice. Laws vary by location. For important agreements, consider having a qualified lawyer review your contract before signing.

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