New Jersey Non-Compete Agreement Template

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The New Jersey Non-Compete Agreement Template acts to provide documentation that a Recipient of a Business Entity’s Confidential Information will not misuse that information during (and after) their professional relationship. This can be an invaluable tool for enforcing the established conditions the Business Entity insisted upon when sharing any of its Trade Secrets, Confidential Information, or Practices with the Recipient. That is, it will avoid any misunderstandings or miscommunications by putting the accepted definitions for Confidential Information and the restrictions that apply when dealing with such information in writing. Naturally, such matters should be discussed and agreed upon at the start of a professional relationship so that both Recipient and Business Entity may proceed with the confidence that a fair contract focused upon the prevention of unfair competition against the Company without debilitating a Recipient’s career in the industry.

There is no statute or regulation governing non-compete agreements in the state of New Jersey. N.J.A.C. 13:42-10.16:: A licensed psychologist cannot enter into an agreement. Non-compete agreements are enforced if they are reasonable in scope and duration. If a party is a physician, an employer also has a legitimate interest in protecting patient referral bases, confidential business information and return of investment on training.

Laws – None

How to Write

1 – Provide Some Information To Apply This Introduction To The Contract Participants

The first article, “I. Purpose,” will introduce why this contract is being issued by the Business Entity to its Recipient. The structure of this paragraph shall supply the necessary wording but, it will be necessary to manually submit the Legal Name of each party. Two blank spaces have been furnished for this task. The Legal Name of the Business Entity allowing access to its Confidential Information must be presented on the first blank space and the Legal Name of the Recipient should be submitted on the second blank space.

2 – Adjust The Restrictions To Be Appropriate To The Recipient Situation

There are a variety of situations why or when restrictions must be placed on the Contract Recipient’s behavior after having access to a Business Entity’s Confidential Information. These situations range from a formal partnership to a new employee to a tour of a facility. For this reason, some choices regarding the terms and conditions of this contract have been provided so it can be tailored to the situation at hand. In “2. Non-Compete/NonDisclosure,” a list of several types of restrictions are presented with a check box next to each one. If the Business Entity has the promise the Recipient will obey a restriction and it is fair to apply, mark the corresponding check box to include it in the scope of this contract’s Effect.

If appropriate, the Business Entity may use this document to solidify a Recipient promise to refrain from directly or indirectly engaging in competition with the Business’ services/products. Check mark the first statement, “Business Practices,” to apply this restriction.To document the Recipient’s guarantee that he or she will not conduct business with the Company’s customers in a similar fashion as that of the Company, mark the “Clients/Customers” check box.In some cases, the Business Entity will have a valid concern regarding any relationships that may develop between the Recipient and its competitors. If so, then check the “General Competitor(s)” statement to include its wording in the contract conditions the Recipient must obey.If the Business Entity has legitimate security concerns with specific entities where any possible relationships should not be allowed, then provide a list of each competitor’s Legal Name on the blank lines in the “Specific Competitor(s)” statement and mark the check box provided.If the Recipient forming a relationship with the Company’s “Employees” holds a potential danger to the Business Entity’s marketplace standing, the Recipient may be restrained by checking the last statement’s box.It is imperative to this contract’s validity that a specific Period of Effect be named for the terms in this agreement. We will address this issue in “3. Time Period.” First, supply the total length of time the terms of this contract will apply to the Recipient once they are imposed on the blank line preceding the word “…Period.”This article will also have two check box statements. Use these statements to define when the terms of this contract will begin. Only one of these statements should be selected. Select the first statement if the terms of this contract will begin on the Execution Date of this paperwork or the second check box to declare the starting date as the Calendar Date when the issuing Business Entity and Recipient relationship endsSometimes the Business Entity may be willing to compromise with the Recipient by offering an opportunity to purchase a premature termination of these terms and obligations. If this option should be made available to the Recipient, then write out the dollar amount the Recipient must pay the Business Entity on the first blank line in “4. Payment Options” and re-enter it numerically on the second blank line. This first statement must be check marked to be included it in this contract.If the Business Entity will not offer a Purchase Option or if it would simply be inappropriate to do so, then mark the second statement in this article. Note: Only one of the check box statements in “4. Purchase Option” may be selected.

3 – This Contract Must Operate In A Specific Predetermined Area

Find the statement in the fifth article (“5. Jurisdiction”) then record which Counties/Cities snd State where this contract will be enforced on the blank line.

4 – The Contract Participants Must Agree On An Execution Date

Both parties will need to sign this contract. Record the Calendar Date of this Execution in “13. Entire Agreement.” Report this date by entering the Calendar Day of the Month on the first blank line, the Name of the Month on the second blank space, and the Year on the last blank line in the statement beginning with “In Witness Whereof…”

5 – Only The Business Entity May Satisfy “The Company” column

The Business Entity issuing this contract will need an Authorized Representative to sign this contract on its behalf. This individual will have to sign his or her Name on the “Signature” line.After the signature, the Authorized Signature Party must print his or her Name then, report the Title he or she holds with the Business Entity on the blank line “Print Name And Title.”Once these tasks have been completed, it will be necessary to report the Signature Date on the last blank space.

6 – The Recipient Column Will Solidify Intent Through His Or Her Signature

The individual making the promises set forth in this contract must sign the “Signature” line beneath the column heading “Recipient.”This Recipient must also make sure to print his or her Name on the “Print Name” lineA tool used to verify this signature will be the Signature Date. The Recipient must enter this Calendar Date on the blank line labeled “Date” in his or her column.