Sample Non-Competition Agreement For Texas Business Owners

There are many reasons to insist on a non-competition agreement between your company and an employee.  A non-competition agreement (sample provided below) should clearly describe what subject matter the other party is agreeing to not compete with/for.  Something to keep in mind when creating a non-competition agreement (or any agreement for that matter) is that creating appropriate definitions can be the difference between a great agreement and one that is toothless or unenforceable because generally speaking, many of the relevant terms will be defined by the agreement itself.

Here is a sample non-compete that might be inserted into an employment agreement.

During the term of this Agreement, the Employee agrees not, directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, director, or in any other individual or representative capacity, to engage or participate in any business that is in competition in any manner whatsoever with the business of the Employer. Furthermore, on the termination of this Agreement, the Employee expressly agrees not to engage or participate, directly or indirectly, in any business located within specify reasonable geographic limitation that is in competition with the business of the Employer for a period of specify reasonable period of duration.

In most circumstances, a non-competition agreement should be executed in conjunction with an agreement to stop an ex-employee from trying to take key employees from the former employer.  These clauses are generally referred to as non-solicitation clauses.

Non Solicitation Clause

Here is a sample of a non-solicitation clause:

The Employee acknowledges that during the course of their employment, they will necessarily be introduced to and become familiar with the Employer's other employees, and with their skills and capabilities. In connection with the Employee's promise not to compete with the Employer for a period of Some Amount of Time set out in this agreement, the Employee agrees that for the duration of that covenant she or he will not solicit any person who is known to her or him to be an employee of the Employer to work in an enterprise or business by which the Employee is employed or in which the Employee has an ownership or investment interest.  Additionally, the Employee agrees not to hire or promise to hire any of the Employer's current employees during the duration of the anti-compete covenant.

The sample non-competition agreement provided above is intended to be used only as a reference tool.  In some circumstances, inserting non-legal provisions could make the provision unenforceable.  It's extremely important to consult with a business attorney prior to making any key hires or entering into important agreements.