Non Compete Agreement Between Companies Template for Austria

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Key Requirements PROMPT example:

Non Compete Agreement Between Companies

"I need a Non-Compete Agreement Between Companies for an Austrian software development company acquiring a smaller competitor, with restrictions covering Central Europe and lasting until March 2025, including specific provisions for protecting client lists and proprietary technology."

Document background
The Non-Compete Agreement Between Companies is a crucial legal instrument used in Austrian business transactions where companies need to protect their legitimate business interests when engaging in close business relationships, such as joint ventures, mergers, acquisitions, or strategic partnerships. This document, governed by Austrian law and compliant with EU regulations, becomes particularly important when companies share sensitive information, technology, or market knowledge. It defines the scope of restricted activities, geographical boundaries, and duration of non-compete obligations, while ensuring compliance with Austrian competition law (Kartellgesetz) and related regulations. The agreement typically follows instances where companies need to protect their market position, intellectual property, or business secrets from being used competitively against them by their business partners.
Suggested Sections

1. Parties: Identification of the contracting companies, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the business relationship between the parties and the legitimate business interests being protected

3. Definitions: Key terms used throughout the agreement, including 'Competitive Activity', 'Confidential Information', 'Territory', and 'Restricted Period'

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas covered by the restriction

5. Duration: Specific timeframe for the non-compete obligations, ensuring compliance with reasonable duration requirements under Austrian law

6. Geographic Limitations: Clear definition of the territorial scope where the non-compete obligations apply

7. Consideration: The mutual benefits or compensation provided in exchange for the non-compete obligations

8. Exceptions and Permitted Activities: Activities explicitly allowed despite the general non-compete provisions

9. Confidentiality Obligations: Provisions regarding the handling and protection of confidential information

10. Breach and Remedies: Consequences of violation and available legal remedies, including any agreed penalties (Konventionalstrafe)

11. Governing Law and Jurisdiction: Specification of Austrian law as governing law and designation of competent courts

Optional Sections

1. Pre-existing Obligations: Section addressing any existing non-compete or similar obligations that may affect this agreement

2. Group Company Provisions: Extended provisions covering affiliated companies and subsidiaries, used when parties are part of larger corporate groups

3. Post-Term Obligations: Specific obligations that continue after the termination of the main business relationship

4. Compliance with Competition Laws: Specific provisions ensuring compliance with EU and Austrian competition regulations, particularly relevant for larger companies or those with significant market share

5. Alternative Dispute Resolution: Provisions for mediation or arbitration before court proceedings, recommended for international business relationships

6. Assignment and Transfer: Provisions regarding the ability to transfer rights and obligations under the agreement, particularly relevant in case of corporate restructuring

7. Severability and Reformation: Provisions allowing court modification of unenforceable terms, particularly important given strict Austrian enforcement of non-compete provisions

Suggested Schedules

1. Schedule 1: Restricted Activities: Detailed list of specific activities, products, or services covered by the non-compete obligation

2. Schedule 2: Territory Definition: Detailed maps or lists of countries/regions where the non-compete applies

3. Schedule 3: Affiliated Companies: List of group companies or affiliates bound by or benefiting from the agreement

4. Schedule 4: Existing Contracts and Relationships: List of pre-existing business relationships or contracts explicitly excluded from the non-compete

5. Appendix A: Market Analysis: Supporting documentation justifying the scope of restrictions based on market conditions

6. Appendix B: Consideration Details: Detailed breakdown of any financial or other consideration provided in exchange for the non-compete obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Technology and Software

Manufacturing

Professional Services

Healthcare and Pharmaceuticals

Financial Services

Retail and E-commerce

Research and Development

Consulting Services

Industrial Engineering

Telecommunications

Energy and Utilities

Consumer Goods

Biotechnology

Relevant Teams

Legal

Executive Leadership

Corporate Development

Business Development

Compliance

Commercial

Strategy

Mergers and Acquisitions

Operations

Risk Management

Procurement

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Business Development Director

Corporate Strategy Manager

Managing Director

Legal Counsel

Compliance Officer

Chief Operating Officer

Head of Mergers and Acquisitions

Commercial Director

Contract Manager

Partnership Manager

Chief Commercial Officer

Business Unit Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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