The Noncompete Agreement is an agreement under which one party (the "Noncompeting Party") agrees not to compete with another party (the "Protected Party"). The need for this type of agreement can arise from a number of circumstances. Examples include; (i) business parties that are terminating their working relationship, (ii) a buyer (the Protected Party) who is purchasing a business from its current owner (the Noncompeting Party), and (iii) an employer/employee relationship that is being terminated. In such cases, the Protected Party may wish to obtain agreements from the Noncompeting Party stating that the Noncompeting Party will not; (i) engage in a similar business, or (ii) solicit the Protected Party's customers or employees. In some cases, the employer may have already obtained some protection from competition by including a Noncompete Provision in an employment agreement. Generally, the Noncompete Agreement should not be used with such an employee, unless the agreement is being used in connection with a termination. The Noncompete Agreement should be signd by both parties and becomes effective as of the date specified in the Agreement. |