Non-Compete Agreement Template

Created April 6, 2026

This Non-Compete Agreement (“Agreement”) is entered into as of [Effective Date] (“Effective Date”), by and between [Disclosing Party Name], a [legal form and jurisdiction of incorporation/organization], with a principal place of business at [Address] (“Company”), and [Receiving Party Name], a [legal form and jurisdiction of incorporation/organization], with a principal place of business or residence at [Address] (“Recipient”). Company and Recipient may be referred to individually as a “Party” and collectively as the “Parties”.

WHEREAS, Recipient desires to enter into, or has entered into, a relationship with Company, which may include employment, engagement, consultancy, or other forms of business association;

WHEREAS, in connection with such relationship, Recipient may be exposed to certain confidential information, trade secrets, customer relationships, business strategies, and other proprietary interests of Company;

WHEREAS, Company seeks to protect its legitimate business interests, including its goodwill, confidential information, customer and employee relationships, and competitive position;

WHEREAS, Recipient acknowledges Company’s interest in safeguarding these interests and is willing to enter into this Agreement as a condition of, and in consideration for, the relationship with Company and the benefits derived therefrom;

NOW, THEREFORE, in consideration of the mutual promises, covenants, and obligations herein contained, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

  1. Definitions and Interpretation

    1. For the purposes of this Agreement, unless otherwise expressly provided or the context otherwise requires, the following terms shall have the meanings set forth below:

    2. “Affiliate” means any entity that directly or indirectly controls, is controlled by, or is under common control with a Party.

    3. “Business” means the business activities conducted by Company as of the Effective Date, including, but not limited to, [insert description of business activities, products, or services], and any business reasonably contemplated or planned by the Company during the Term.

    4. “Client” or “Customer” means any individual or entity that has purchased products or services from Company, or with whom Company has engaged in material discussions for the sale or provision of products or services, within the [insert relevant time frame, e.g., twelve (12) months] preceding the Effective Date or during the Term.

    5. “Confidential Information” means all non-public, proprietary, or confidential information, in any form or medium, disclosed or made available by Company to Recipient, including but not limited to trade secrets, business plans, pricing, financial data, technical data, marketing strategies, and information regarding employees, clients, and suppliers.

    6. “Competitor” means any individual or entity, other than Company or its Affiliates, engaged in or planning to engage in the Business or any substantially similar business.

    7. “Restricted Period” means the period commencing on the Effective Date and continuing for [insert number] ([__]) years following the termination or expiration of Recipient’s relationship with Company, regardless of the reason for such termination or expiration.

    8. “Restricted Territory” means [insert geographic scope, e.g., specific cities, states, countries, or other defined territories].

    9. Headings and captions are for convenience and reference only and shall not affect the interpretation of this Agreement.

    10. Unless the context otherwise requires, words importing the singular include the plural and vice versa, and words importing gender include all genders.

    11. Any reference to a “Section” shall mean a section of this Agreement unless otherwise expressly stated.

  2. Term and Duration of Restrictive Covenants

    1. The restrictive covenants set forth in this Agreement shall become effective as of the Effective Date and shall continue in full force and effect during the Recipient’s relationship with Company and for the entirety of the Restricted Period thereafter.

    2. The duration of each restrictive covenant shall be interpreted separately, so that if any covenant is deemed unenforceable for a particular duration, it may nonetheless be enforced for a lesser duration deemed permissible by a court of competent jurisdiction.

    3. The obligations of Recipient under this Agreement shall survive the termination or expiration of Recipient’s relationship with Company for the full duration of the Restricted Period, regardless of whether such termination was voluntary or involuntary, with or without cause.

    4. Company reserves the right to extend the duration of the restrictive covenants by an additional period equal to any period during which Recipient is found to be in breach of any provision of this Agreement, to the extent permitted by applicable law.

    5. If, during the Restricted Period, Recipient becomes employed by or affiliated with any entity that engages in activities which would violate the terms of this Agreement, Recipient shall promptly notify Company in writing of such employment or affiliation and provide sufficient details for Company to assess compliance with this Agreement.

    6. Recipient expressly acknowledges that the duration of the restrictive covenants is reasonable in light of the value of the Confidential Information and the legitimate interests sought to be protected by Company.

    7. Nothing in this Agreement shall be construed to limit the Company’s right to seek additional or alternative relief in the event of a breach of the restrictive covenants described herein.

  3. Non-Competition Obligations

    1. Recipient hereby covenants and agrees that, during the Restricted Period and within the Restricted Territory, Recipient shall not, directly or indirectly, own, manage, operate, join, control, be employed by, consult for, participate in, or be connected with, as a principal, agent, partner, shareholder, director, officer, employee, contractor, or otherwise, any Competitor of the Company.

    2. Recipient shall refrain from engaging in any business or activity that is substantially similar to or competitive with the Business of Company, whether on Recipient’s own behalf or on behalf of any third party.

    3. Recipient shall not, directly or indirectly, establish, found, or acquire an ownership interest in any entity that engages in the Business or any substantially similar business within the Restricted Territory during the Restricted Period.

    4. Recipient agrees not to provide any financial, technical, or other assistance to any Competitor of Company that would enable or facilitate competition with Company’s Business in any manner.

    5. Recipient shall not aid, abet, or otherwise encourage any third party to violate the terms of this Section or to engage in conduct that would, if performed by Recipient, constitute a breach of this Section.

    6. Recipient acknowledges that the obligations under this Section are reasonable and necessary to protect Company’s legitimate business interests, including its proprietary information, goodwill, and customer relationships.

    7. Any exception to the prohibitions of this Section must be expressly set forth in writing and signed by duly authorized representatives of both Parties.

  4. Geographic Scope of Restrictions

    1. The restrictions contained in this Agreement shall apply within the Restricted Territory, which shall encompass [insert specific geographic areas, e.g., cities, states, countries, or regions].

    2. If any court of competent jurisdiction determines that the geographic scope of the restrictions herein is unreasonably broad, the Parties agree that such court may reduce the scope to the maximum extent permissible under applicable law.

    3. Recipient acknowledges that the geographic scope of the restrictions is reasonable and reflects the areas in which Company’s Business is conducted or has a legitimate interest in protecting.

    4. Recipient agrees not to circumvent the geographic limitations described in this Agreement by conducting competitive activities through Affiliates, agents, proxies, or other indirect means within the Restricted Territory.

    5. The Parties acknowledge that competitive harm to Company is not limited to a particular location but may occur wherever the Company’s Business operates or intends to operate, and the Restricted Territory is defined accordingly.

    6. Recipient shall not attempt to evade the geographic restrictions by relocating, using remote means, or otherwise transferring activities outside the Restricted Territory with the intent to circumvent the intent of this Agreement.