NON-SOLICITATION
Other Names: Interference with Business • Non-Circumvention
Sample Clause Language:
[During the Term of this Agreement and for a period of NUMBER + MONTH/YEAR thereafter] [During the first NUMBER + MONTH/YEAR after the Effective Date] [Until the date NUMBER + MONTH/YEAR after the termination of PARTY B’s employment with PARTY A for any reason], [PARTY B] shall not, directly or indirectly, solicit, induce, attempt to solicit, recruit, or encourage any [employee] [executive or management (or higher) level employee] of [PARTY A] [or any parent or subsidiary of PARTY A] to leave his or her employment either for [PARTY B] or for any other entity or person.
[The restrictions in this Section shall not apply with regard to (i) general solicitations that are not specifically directed to employees of PARTY A, or (ii) serving as a reference at the request of an employee.]
[PARTY B] represents that he or she (i) is familiar with the foregoing covenant not to solicit, and (ii) is fully aware of his or her obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of such covenant.
Source: Based on TrueCar, Inc. (2018, March 1). Form 10-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
Description:
Non-Solicitation clauses restrict a party from soliciting or enticing employees, customers, vendors, and suppliers to leave or sever relationships with any other party. This sample clause is unilateral and drafted in favor of Party A. The clause prohibits Party B (e.g., the receiver of confidential information, an employee, a contractor, etc.) from soliciting employees of Party A (e.g., the discloser of confidential information, an employer, a client, etc.).
Common Contracts with this Clause:
- Employment Agreements
- Confidentiality Agreements
- Partnership or Operating/LLC Agreements
- Inventions Assignment Agreements
- Licensing Agreements
What you'll see with Lawgood:
Four (4) Alternative Positions
- Unilateral (Employees, Customers & Suppliers)
- Unilateral (Employees)
- Mutual (Employees)
- Mutual (Employees, Customers & Suppliers)
Draft better contracts with Lawgood.