Pennsylvania Non-Compete Agreement Template

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The Pennsylvania Non-Compete Agreement Template is employable as a preventative measure against any potentially unfair competition due to a Business Entity’s disclosure of information to a Recipient. There are quite a few times when a Business Entity will leave its Proprietary Information somewhat vulnerable such as when it initializes a partnership with another entity or when it hires a new employee or staff member. Thus, a new entity becomes privy to its operations. While Pennsylvania does not have any specific statutes regarding Non-Compete Agreements, this paperwork can be enforced so long as it is a fair contract that has been presented at the start of the Business Relationship between the Company disclosing information and the Recipient of this contract.

Naturally, since there are many types of relationships, this paperwork will present several choices and require some information to adjust it to the Business Entity’s relationship with the Recipient of these terms. Make sure when filling out this form that both signature parties agree to the terms beforehand, especially since this can only be considered a binding agreement if it is signed.

Laws – None


How to Write

1 – Name Each Signature Party That Intends To Enter This Agreement

In the first section’s summary introduction (under the heading “1. Purpose”), the participants of this agreement will need to be identified in the roles they play here. The Legal Name of the Business Entity issuing this contract to safeguard its competitive status in the market should be presented on the first available blank line.  On the next blank line in this statement, the name of the person who has agreed to abide by the terms and conditions set forth here must have his or her Full Name filled out.

2 – Select The Restrictions That Should Apply To The Recipient’s Behavior

The section heading “2. Non-Compete/Nondisclosure” will contain a list of statements each proclaiming what behaviors the Recipient may not engage in as a result of the information the Business Entity has shared. If one of these statements contains the language that should apply to the Business Entity’s expectations of the Recipient, then place a checkmark in the corresponding checkbox. This action will include it in the agreement being drafted. In this way, the Recipient’s “Business Practices” may be limited by the concerned Company. Additionally, the issuing Business Entity may limit the Recipient’s relationships with its “Clients/Customers,” “General Competitor(s),” any listed “Specific Competitor(s),” and “Employees.” The blank lines provided in the “Specific Competitor(s)” description will accept a list of the competitors the Recipient must avoid and must have this information present when the checkbox is selected.

3 – Define The Time Period And The Starting Event When These Restrictions Apply To The Recipient

The Effect of these restrictions can be quite impactful on a Recipient’s career if left in place indefinitely. More often than not, such a lifespan of these Effects would be deemed unfair. Thus, in “3. Time Period,” supply a definitive span of time that defines how long these Effects are active on the blank space in the first statement. Then indicate precisely when the Effect of this contract will begin by marking the first checkbox statement or the second checkbox statement to name the Calendar Date of this Agreement’s Execution Date or termination of the concerned Business Relationship as the Start Date.

4 – Indicate How This Agreement Will Terminate

The issuing Business Entity can decide whether these terms must terminate by naturally expiring or through Recipient intervention. Naturally, if an intervention is allowed, the Business Entity will require a certain amount of money paid to nullify these terms prematurely at its own risk. In this case, mark the first checkbox statement in “4. Purchase Option” and fill in the expected Payment Amount (in USD) on both the available blank lines in the requested format (first written out then, numerically).If the concerned Business Entity has determined these terms must be active for the full Period of Effect and thus, may not be terminated prematurely, then mark the second checkbox statement.

5 – These Restrictions Can Only Apply To A Pre-Determined Region

In section “5. Jurisdiction”, the Pennsylvania regions where the Recipient will be limited by the conditions imposed above for the named Period Of Effect must be reported on the available blank line. If there is not enough room then, list the territories on a separate sheet and attach that sheet to this document

6 – The Participants Of This Agreement Must Sign It On The Execution Date Listed

This contract will need to have a specific Calendar Date assigned to its Execution. That is, it must be shown that it has been presented and signed before the start of the developing relationship between the Business Entity and the Recipient of these terms. Report this Calendar Date as a Two-Digit Calendar Day, Month, and Year when it is executed using the “In Witness Whereof” statement in “13. Agreement.”

Locate the column heading “The Company.” The issuing Business Entity will use this area to agree to enter this contract. The Signature, Printed Name, Title, and Signature Date of the concerned Business Entity’s Signature Representative must be supplied by the Signature Representative on the blank lines labeled “Signature,” “Print Name And Title,” and “Date.”

The section labeled “Recipient” will require the Signature, Printed Name, and Signature Date supplied in their respectively labeled areas (“Signature,” “Print Name,” and “Date”) supplied by the Recipient named in the paragraph introduction.