The Non-Compete Agreement is an agreement under which one party (the "Non-Competing 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 Non-Competing Party), and (iii) an employer/employee relationship that is being terminated. In such cases, the Protected Party may wish to obtain agreements from the Non-Competing Party stating that the Non-Competing 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 Non-Compete Provision in an employment agreement. Generally, the Non-Compete Agreement should not be used with such an employee, unless the agreement is being used in connection with a termination. The Non-Compete Agreement should be signd by both parties and becomes effective as of the date specified in the Agreement. |