A Non Compete Agreement Between Companies is essential in business transactions where companies need to protect their legitimate interests from competition. Common in mergers, acquisitions, joint ventures, and business sales, this agreement, governed by English and Welsh law, defines the scope, duration, and geographic limitations of competitive restrictions. It requires careful drafting to ensure enforceability while balancing commercial interests with competition law requirements.
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1. Parties: Identification of the contracting companies including registered addresses and company numbers
2. Background: Context of the agreement and business relationship between the parties
3. Definitions: Key terms used throughout the agreement including Restricted Business, Territory, and Confidential Information
4. Scope of Non-Compete: Detailed description of prohibited activities and business areas covered by the restrictions
5. Duration: Time period for which the restrictions will remain in force
6. Geographic Limitations: Territorial scope of restrictions and definition of covered regions
7. Consideration: Details of the value or compensation provided in exchange for the restrictions
8. Remedies and Enforcement: Consequences of breach, including damages and injunctive relief provisions
9. General Provisions: Standard contractual provisions including governing law, jurisdiction, and entire agreement
1. Carve-outs and Exceptions: Specific exceptions to the non-compete restrictions, such as existing businesses or permitted activities
2. Non-solicitation Provisions: Additional restrictions on approaching employees, customers, or suppliers of the other party
3. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information
4. Surviving Obligations: Specification of which obligations continue after termination of the agreement
1. Schedule 1 - Restricted Business Activities: Detailed list and description of specific business activities that are prohibited
2. Schedule 2 - Restricted Territories: Detailed maps or descriptions of geographic areas where restrictions apply
3. Schedule 3 - Consideration Details: Detailed breakdown of payment terms, amounts, or other consideration structure
4. Schedule 4 - Existing Business Interests: List of current business activities that are exempted from the restrictions
Relevant legal definitions
Affiliate
Business Day
Commencement Date
Competitive Business
Confidential Information
Control
Effective Date
Group
Intellectual Property Rights
Non-Compete Period
Permitted Business
Restricted Activities
Restricted Business
Restricted Territory
Subsidiaries
Term
Trade Secrets
Working Hours
Competition
Market Share
Customer
Supplier
Material Interest
Representatives
Consideration
Business Day
Commencement Date
Competitive Business
Confidential Information
Control
Effective Date
Group
Intellectual Property Rights
Non-Compete Period
Permitted Business
Restricted Activities
Restricted Business
Restricted Territory
Subsidiaries
Term
Trade Secrets
Working Hours
Competition
Market Share
Customer
Supplier
Material Interest
Representatives
Consideration
Clauses
Interpretation
Non-Competition
Territorial Restrictions
Duration
Consideration
Confidentiality
Non-Solicitation
Non-Dealing
Permitted Activities
Group Company Provisions
Independent Contractors
Assignment
Severability
Variation
Entire Agreement
Force Majeure
Notices
Third Party Rights
Governing Law
Jurisdiction
Remedies
Warranties
Indemnification
Termination
Survival
Non-Competition
Territorial Restrictions
Duration
Consideration
Confidentiality
Non-Solicitation
Non-Dealing
Permitted Activities
Group Company Provisions
Independent Contractors
Assignment
Severability
Variation
Entire Agreement
Force Majeure
Notices
Third Party Rights
Governing Law
Jurisdiction
Remedies
Warranties
Indemnification
Termination
Survival
Relevant Industries
Relevant Teams
Relevant Roles
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