California Non-Compete Agreement Template

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The California Non-Compete Agreement Template provides business entities a method to obtain a written promise from the Agreement Recipient that he or she will refrain from the competitive actions defined in this paperwork. This template acts as a contract supplying the framework and language necessary to maintain a certain amount of discretion regarding Trade Secrets and behavior restrictions meant to protect its standing in a competitive marketplace.

Typically, the State of California will only act independently should a non-compete clause be blatantly breached. In this case, the employee shall have ten days to recollect any publications from any vendor. If not, the recipient may then be required to serve a short amount of jail time, pay a $1000.00 fine or both. Otherwise, except any business or goodwill sales on behalf of a business, that would be at all provided in 16600 through 16607 whereas anyone is would be restrained from engaging in any type of what would be considered by California state law as profession, trade, and/or any kind of business is now, to this extent, considered void.

This template can be downloaded directly using this page. You may preview it by selecting the image below then when you are ready, download it in one of the three formats available.

Laws – Sections 16600-16607 (Business and Professions Code)

How to Write

1 – Furnish Each Signature Party’s Identity

The first paragraph will contain some information that should be stated at the start of such an agreement. It will require only minimum input to apply it to the situation. First, enter the Legal Name of the Company (Disclosing Party) on the blank line after the words “…Relating To The Business Of”  

The second blank line, just before the phrase “Hereinafter Referred To As The Recipient…,” must have the Name of the individual promising to keep the terms of this agreement recorded on it.

2 – State The Required Restrictions

Below the introduction of this agreement will be a list of paragraph descriptions. Each one with its own corresponding checkbox. Fill in the first checkbox of the “Non-Compete/Disclosure” section to restrict the Recipients “Business Practices,” the second checkbox to limit the Recipient’s contact with the Company’s “Clients/Customers,” the third check box to prevent the Recipient from working with the Company’s “General Competitor(s),” the fourth check box to restrict contact from “Specific Competitor(s) (list the Specific Competitors on the blank lines provided), and the fifth check box to forbid the Recipient contact with the Company’s “Employees.” Make sure to mark each checkbox that applies. It is imperative to the use of this document that both parties read each of these statements and agree to which statements should be check marked and included in this Agreement.

3 – Declare The Effective Period

Now in the “Time Period” section, present the determined time period this contract’s terms are active in the blank space in the statement beginning with the phrase “Recipient Warrants And Guarantees…”

A choice will be presented in this segment of the contract. The Company (Disclosing Party) should indicate if this contract goes into effect immediately upon its signing by checking the first box or if it will begin only when the Recipient’s relationship with the Company ends by marking the second checkbox.

4 – Settle If A Purchase Option Is Available

The heading “4. Purchase Option” shall contain two statement choices. If the Company wishes to allow the Recipient to prematurely terminate this contract without breaching it in exchange for a predetermined Purchase Amount then, check the first box and record this Purchase Amount on blank lines in the corresponding statement. If this option is not one the Company will accept then mark the second checkbox.

5 – Document Where This Contract Is Enforced

Our next task will be to document precisely where this contract will be governed. That is, what City/State Jurisdiction holds authority over its contents. Record this in the statement under the heading “

6 – Agree To These Terms By Signature

The final portion of this contract shall have three separate areas requiring direct attention from the user. In the statement under the heading “13. Entire Agreement,” supply the Calendar Day this agreement is being signed on the first blank space. Then on the second blank space furnish the Calendar Month. Complete this statement with the Calendar Year when this document is being signed on the last blank space. It is important, but not mandatory, the Date in this statement matches that of the Signature Dates or is at a later date then the Signature Dates

The column at the bottom left-hand corner of this page shall require the “Company” Representative’s Signature, Printed Name and Title, and Signature Date supplied into the appropriate areas.

The Recipient must also sign his or her Name. This should be done in the column at the bottom right-hand corner of the page (“The Recipient”). Below the signature provided by the Recipient, he or she must present his or her Printed Name and Date of Signature.