Question

Draft the following clauses of a non-compete agreement containing the following elements:

Parties involved;

Duration of Agreement;

Geographic Range of Agreement;

Specific Activities and Subjects Included in Non-Competition; and

Compensation.

The non-compete agreement should be two to three pages maximum.

Answer 1

Non-Compete Agreement

This is an Agreement between [EMPLOYEE] and [COMPANY]. The Agreement is effective from (“Effective Date”).

In consideration of the employment opportunity provided by [COMPANY], You, intending to be legally bound, agree to the following:

1. Duration of Agreement. This Agreement is effective from the Date, and shall remain in effect throughout the term of your employment with the Company and for a period of two years thereafter.

2. Geographic Range of Agreement. You agree that at no time during your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company. For a period of one (2) years immediately following the termination of your employment, You will not, for yourself or on behalf of anyone, engage in any business activity which competes with the Company within a RADIUS of the facility in which you were employed.

3. Specific Activities and Subjects Included in Non-Competition. During the term of your employment, and for a period of one (2) years immediately thereafter, You agree not to solicit any employee or independent contractor of the Company For a period of one (2) years following the termination of your employment, You shall not, directly or indirectly, disclose to any person, firm or corporation the names or addresses of any of the customers or clients of the Company or any other information pertaining to them.

4. Compensation. For keeping with all the terms and conditions of the Contract, a compensation will be given at the end of employment period.

5. Jurisdiction and Venue. This Agreement is to be construed pursuant to the laws of the State of _______. You agree to submit to the jurisdiction and venue of any court of competent jurisdiction in _________ County, [STATE] without regard to conflict of laws provisions, for any claim arising out of this Agreement.

Date__________                                            [NAME OF COMPANY]

                                                                        By_________________________________

By your signature below you acknowledge that you have read and understand the foregoing Agreement, that you agree to comply with all of the terms of the Agreement, and that you have received a copy of the Agreement.

Date__________                                            ___________________________________

                                                                        Employee