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Provision: Non-Compete, General

Sample Provision

At all times while you’re employed by company and for six months after your employment terminates, you will not directly or indirectly:

i. own, manage, operate, finance, join, control, advise, consult, render services to have an interest or future interest in or participate in the ownership, management, operation, financing or control of, or be employed by or connected in any manner with any Competing Business;

ii. solicit for employment, higher or for employment to, or otherwise aided or assist (by disclosing information about employees or otherwise) any other person or entity other than company or a company subsidiary in soliciting for employment, hiring or offering employment to, any employee of company or a company subsidiary; or

iii. take any action which is intended to harm company or its reputation, or the company reasonably concludes could harm company or its reputation or lead to unwanted or unfavorable publicity for company.
Ownership of an investment of less than the greater of $25,000 or 1% of any class of equity or debt security of a Competing Business will not be deemed ownership or participation in ownership for the purposes of this agreement.

"Competing Business" includes, but is not limited to, [describe competing businesses here.]

Sample Provision

The parties mutually recognize that, in the course of your employment with company, you will have access to and will acquire knowledge of confidential and proprietary company information. This information includes, without limitation: marketing and strategies; customer names, needs, and other information; client potential; and other types of information which would place company at a competitive disadvantage if known by or revealed to competitors or customers. The parties mutually recognize that, in the course of your employment with company, in addition to company information, you will receive special assistance in marketing and special training which is not generally available elsewhere and which could harm company is known by her revealed to its competitors or customers. Accordingly, you agree:

a. You will never disclose to any person or entity any of company's confidential information or its confidential marketing and training programs.

b. You will not enter into any employment or other agreement to perform services as an account executive or sales manager or perform any other services set forth in paragraph 10 for any company located within 50 miles of the company's office in which you work for a period of 120 days after the termination of your employment with company.

c. You will not have any contact with and will not solicit clients or customers of company for a period of six months after the termination of your employment was station.

Sample Provision

Executive agrees that, during the noncompete period as defined in this agreement, executive shall not directly or indirectly engage in or participate as an owner, partner, stockholder, officer, employee, director, agent out of or consultant for any business competitive with any business of company, without the written consent of company; provided, however, that this provision shall not prevent executive from investing as less than a 1% stockholder in the securities of any company listed on a national securities exchange or quoted on an automated quotation system.

The noncompete period shall cover the entire employment term and the six-month period subsequent to the employment term; provided, however, that, if executive's employment terminates before the end of the employment term, the noncompete period shall terminate, if earlier, (i) six months after Company terminates executive's employment without cause, or (ii) six months after executive is terminated in connection with the relocation of executives position without executives mutual consent.

Employment Contract Provision Index