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Tennessee Non-Compete Agreement Template

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The Tennessee Non-Compete Agreement Template is often used by Businesses who wish to guard over their Trade Secrets and other Confidential Information. There are no statutes governing Non-Compete in Tennessee. The paperwork provided here will, therefore, act as a contract between a minimum of two parties: a Business disclosing information it does not want to be misused and a Recipient who may have access to this type of information.  This agreement will act by allowing the Business to place conditions upon the relationship it will have with the Recipient in terms of its Confidential Information and Recipient Behavior.

Non-compete agreements are generally disfavored because they are considered restraints on trade however they are valid contracts in Tennessee and are regularly enforced. Every case is different but generally, if the Company has a legitimate business interest, supported by sufficient consideration and/or there is a reasonable possibility of potential harm to the Business Entity, the State of Tennessee will enforce such agreements. It should be noted that any Business issuing this Agreement must do so at the start of its relationship with the Recipient.

Laws – None

How to Write

1 – This Agreement’s Participants Should Be Clearly Defined

This paperwork will introduce itself as a contract between two parties in the text beneath the heading “1. Purpose.” These two parties will need to be divulged in the first paragraph and each one must sign the final area of this document. Find the first empty line in the introduction then fill in the issuing entity’s Full Legal Name. This will be the Business or Company that will pursue a relationship with the Contract Recipient only if he or she agrees to the terms this paperwork will present.

The next blank space will also call for a supplement to the language in this document by requesting the Full Name of the person who will comply with the Company’s terms. This will be the Contract Recipient.

2 – Define The Required Recipient Behavior

The second area of this contract carries the label “2. Non-Compete/Disclosure” and will be at the heart of this contract. This area will dispense the expectations of the concerned Business Entity through a checklist of behavior restrictions. The checklist being reviewed will be composed of five basic statements, each defining a set of actions the Business Entity fully expects the Recipient to fully comply with if included in this agreement. In turn, the Recipient will promise to obey any of the checked statements upon signing this document. The Business Entity may choose limitations upon the Recipient’s “Business Practices” and whether the Recipient may or may not have professional relationships with its “Clients/Customers,” “General Competitor(s),” “Specific Competitor(s)” it lists in the fourth statement, and “Employees.” To forbid an entity from pursuing the actions listed in one of these statements, mark the checkbox preceding it. To allow the Recipient to engage in the actions defined by one of these statements, leave its corresponding checkbox blank. Select as many statements as required to properly define the Business Entity’s expectations of the Recipient.

3 – Assign A Definitive Time Frame For This Agreement’s Requirements

This contract cannot exist indefinitely. Such an expectation may be considered unlawful in many instances. Thus, a predetermined period of time must be declared for this contract’s Effect. To begin satisfying this requirement, determine how long this paperwork’s restraints on the Recipient should exist once they begin then record this time period on the blank line in “3. Time Period.” You may report this as weeks, months, or years.“3. Time Period” will also present an additional two statements. Only one of these statements may be marked and selected to provide a strict definition as to when the Time Period when this contract’s power is active. If the start of this Effective Period occurs on the Execution Date, then mark the first checkbox. If this contract’s requirements of the Recipient do not become mandatory until the end of these two entities’ relationship (Recipient and Business Entity), then mark the second checkbox statement.

In addition to a Start Date and a Lifespan to these restrictions, this contract will also need to discuss how it may terminate. If the Recipient has the option to purchase a premature release from these terms, then mark the first statement in “4. Purchase Option” and make sure to report the amount the Recipient must submit to the Company as payment for the premature termination of these terms. This amount should be reported as a word on the first blank and numerically on the second blank line. If the Business requires these restrictions to remain in place for their entire Period of Effect, then mark the second checkbox in “4. Purchase Option.”

4 – This Contract Must Appoint A Region Of Effect

The Terms of this contract and the Period of Effect must be appointed to a pre-defined area in Tennessee. That is the Recipient must agree to where in this state, his or her actions will remain in compliance with these terms. Report the Tennessee Region(s) where this contract applies on the blank line in “5. Jurisdiction.” The Business Entity may only enforce this paperwork in the regions defined here.

5 – Set Up The Execution Date

The Signature Parties concerned will need to coordinate a Date when they will formally declare their participation in this contract. Typically, this Date is set up in advance so that each party will have enough time to review this contract and verify their wishes and intentions are accurately represented by the information provided within it. Look for the heading “13. Entire Agreement” then supply the Execution Date using the three spaces in the last sentence.Below the Execution Statement will be two distinct areas calling out “The Company” and the Contract “Recipient” in their headings. The party named at the top of the column must supply the items requested in it directly. Thus, in “The Company” column, the Business Owner or the Signature Representative Authorized by the Business Entity will need to enter this agreement officially. He or she will need to sign the first blank line, print his or her Name and Title on the second blank line, and fill in the Date he or she signed this document on the last blank line.The “Recipient” named in the introduction must sign his or her Name, Print his or her Name, then supply the Date he or she signed this contract, officially acceding to its terms.