NON-COMPETITION
Other Names: Non-Compete • Covenants Against Competition • Covenant Not to Compete • Restrictive Covenants • Other Activities • Business Activities
Sample Clause Language:
During the Term and for the [one-year] period following the termination of [EMPLOYEE/CONSULTANT]’s [employment/engagement] for any reason, [EMPLOYEE/CONSULTANT] shall not, directly or indirectly, [in whole or in part, acting alone or in conjunction with others,] without the prior written consent of [EMPLOYER/CLIENT], [provide employment (including self-employment), directorship, consultative or other services to] [engage in any activities whether as a principal, partner, managing member, officer, director, consultant, financing source or in any other capacity with] any business, individual, partner, firm, corporation, or other entity that competes with any business conducted by [EMPLOYER/CLIENT] or any of its subsidiaries or affiliates on the date of [EMPLOYEE/CONSULTANT]’s termination of [employment/engagement] or within [one year] of [EMPLOYEE/CONSULTANT]’s termination of [employment/engagement] [in the geographic locations where EMPLOYER/CLIENT and its subsidiaries or affiliates engage or propose to engage in such business] [within DESCRIBE GEOGRAPHIC SCOPE] (the “Business”). Nothing herein shall prevent [EMPLOYEE/CONSULTANT] from having a passive ownership interest of not more than [2%] of the outstanding securities of any entity engaged in the Business whose securities are traded on a national securities exchange.
Source: Based on Esports Entertainment Group, Inc. (2019, May 23). Form 8-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
Description:
Non-Competition clauses in employment-related agreements restrict the employee or consultant from engaging with or performing business activities for a competitor of the employer or client for a period of time within a specific geographic area. The sample clause here is drafted in favor of the Employer/Client. It is a short-form that restricts the Employee/Consultant from engaging in or performing activities for the Employer/Client’s competitors for a specific period of time within a designated geographic area.
Common Contracts with this Clause:
- Employment Agreements
- Consulting Agreements
- Severance Agreements
- Confidentiality Agreements
What you'll see with Lawgood:
Five (5) Alternative Positions
- Favorable to Employer/Client (Long-Form)
- Favorable to Employer/Client (Short-Form)
- Favorable to Employee/Consultant (Short-Form)
- Favorable to Employee/Consultant (Long-Form)
- Competitive Activity Allowed
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