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Michigan Non-Compete Agreement Template

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The Michigan Non-Compete Agreement Template is a legal method of applying contractual protection to a Business Entity’s sensitive information against its potential misuse by the information Recipient. The potential for such misuse may be realized in any situation where the Business Entity opens its books to another party such as a new employee or a temporary staff member. In such instances, the Business Entity will make itself vulnerable by giving a new unproven party access to information not easily gained (if at all) by the public or the Business Entity’s Competitors. In today’s marketplace, any unauthorized release of a Business’ Confidential Information can possibly have long-lasting effects detrimental to the Business Entity’s standing.

Michigan State Law (Michigan Antitrust Reform Act MCL § 445.774a) generally mandates this document and its terms must be mutually fair to both parties and the time period may not be abusive to the Recipient’s career or insensitive to the Business Entity’s concerns. If it is found to be unreasonable in any regard, the state will reserve the right to limit the terms reported in this contract. This document is generally one that is required as part of a hiring process and must be agreed to by both parties in order for an employee to acquire employment.


How to Write

1 – Define The Concerned Parties And How They Will Interact

Find the first two blank spaces in the first article (“1. Purpose”). The first paragraph’s structure and language will introduce the concerned parties. The Company intent on gaining a promise of discretion here must have its Legal Name presented on the first available blank line while the Recipient who guarantees compliance with the terms here must have his or her name displayed on the second blank space in “1. Purpose.”

The next article here will be “2. Non-Compete/Disclosure.” Here, several statements will be made, each defining actions the Recipient will promise not to take or engage in when this contract is signed. If one of the statements listed in this section is checked, it will apply to this contract’s terms. Thus, to forbid the Recipient from directly or indirectly dealing with similar products or services as that of the Company, mark the first checkbox, labeled “Business Practices.”The Company can also demand the Recipient give assurance that he or she will not conduct any affairs similar or in competition with any of the Company’s “Clients/Customers” by having the second statement’s checkbox filled in.The Recipient can also be required to avoid handling any business with the Company’s competitors by marking the “General Competitor(s)” checkbox and/or be forbidden from dealing with specific entities listed in the “Specific Competitor(s)” statement making sure to mark the corresponding box.The last statement, “Employees,” enables the concerned Company to require the Recipient not deal with its Employees, Staff Members, Partners, etc. if the checkbox associated with it is filled in or checked.

2 – The Time Frame Of Effect And Its Durability Must Be Documented

Next, we will need to give some attention to the third part of this contract, with the heading “3. Time Period.” It will be necessary to supply the lifespan of this agreement (in years and/or months) on the blank space in this section. Below this, two options have been furnished to name the event that will begin the span of time this contract remains effective. If the event that starts these conditions is the Execution of this contract, then select the first checkbox. Otherwise, name the Termination of the relationship held between Recipient and Company by selecting the second checkbox. Some companies find it appropriate to offer the Contract Recipient the opportunity to pay a fee in direct exchange for the chance to void the effect of this agreement. The terms of this exchange will be covered in “4. Purchase Option.” If this is possible then, document the amount the Recipient must pay on the first and second blank spaces of the first check statement and mark the corresponding box. If this option will not be offered by the Company and the Recipient must comply for the full Period of Effect listed above, mark the second checkbox in this section.

3 – The Location Where This Document Is Effective And When It Is Acknowledged Must Be Recorded

Record where the Company expects compliance with this paperwork and where it will be enforced on the blank line in the “5. Jurisdiction” section.Generally, when the Signature Parties gather to sign this document will be considered the Execution Date. Use the three blank spaces, in the last statement of the article titled “13. Entire Agreement,” to record this date as a Two-Digit Calendar Day, Month Name, and Two-Digit Calendar Year.

4 – The Binding Signature Of The Recipient Must Be Accompanied By That Of The Company

Both parties listed in the first part of this paperwork will need to provide a Dated Signature to verify the intent to abide by the terms of this agreement while it is in Effect. The columns at the end of this document have been supplied so that each Signature Entity will have his or her own space to provide this verification.

The Company will need to enter this contract by having the Issuer of this contract sign this paperwork. If this is a business entity, the Signature Party may be an Authorized Representative. He or she will need to sign the first line in the column on the left. The Signature Party issuing this contract will also need to Print his or her Name on the next line. If this individual holds a title or plays a specific role with the Company, this position should be recorded on the same line immediately after the Printed Name. The Date the Company’s Signature Party signs this paperwork should be reported on the last line by the Signature Party.

The “Recipient” column will also require attention. The individual named as the “Recipient” in the first article must sign his or her Name on the first line then print his or her Name on the second blank line in this column. The current Date when the Recipient signs this contract should be documented (by the Recipient) on the last available space in this column.