Non-Compete Agreement Example

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Are you considering signing a non-compete agreement? Before you do, it`s important to understand what a non-compete agreement is and its implications. In this article, we`ll give you a non-compete agreement example and explore what it means for you.

What is a non-compete agreement?

A non-compete agreement is a legal contract between an employer and an employee. It prohibits the employee from working for a competitor or starting a similar business for a set period of time after leaving their current job.

Non-compete agreements are common in industries where employees have access to confidential information or trade secrets. For example, a software developer might sign a non-compete agreement to prevent them from taking their knowledge of a company`s proprietary code to a competitor.

Non-compete agreements can also serve as a way for employers to retain top talent. By including a non-compete clause in an employment contract, employers can prevent employees from leaving and taking their expertise to a competitor.

Non-compete agreement example

Here`s an example of a non-compete agreement:

Non-Compete Agreement

This agreement (the „Agreement“) is entered into between [Employer Name] (the „Employer“) and [Employee Name] (the „Employee“) on [Date].

1. Non-Competition

During the Employee`s employment and for a period of [Length of Time] after the termination of the employment, for any reason whatsoever, the Employee agrees not to compete with the Employer or any of its subsidiaries, affiliates, or related companies (collectively, the „Company“) in any jurisdiction where the Company conducts business.

2. Definition of Competition

„Competition“ is defined as the development, production, marketing, or sale of any product or service that is the same or similar to any product or service provided by the Company.

3. Exceptions

This non-compete agreement shall not apply if the Employee is terminated by the Company without cause or if the Employee is required by law to compete with the Company.

4. Remedies

The Employee acknowledges that any breach of this Agreement will result in irreparable harm to the Company, and that the Company will be entitled to seek injunctive relief, in addition to any other remedies available at law or in equity.

5. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of [State] and shall be binding upon the parties hereto and their respective heirs, executors, administrators, successors, and assigns.

6. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between them, whether oral or written, relating to the subject matter of this Agreement.

In summary, this non-compete agreement example states that the employee agrees not to compete with the employer for a set period of time after termination of employment. It also defines „competition“ and offers exceptions to the agreement. Additionally, the employer has the right to seek injunctive relief if the agreement is breached.


Signing a non-compete agreement can limit your future job opportunities and restrict your ability to start your own business. Before signing, it`s important to carefully review the agreement and seek legal advice if necessary. Always understand fully what you are agreeing to.