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Texas Non-Compete Agreement Template

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The Texas Non-Complete Agreement Template has been developed to grant Business Entities the ability to set a legally enforceable contract that contains the terms and conditions meant to protect its Confidential Information from being inappropriately used by the Recipient. Typically, the Contract Recipient will be a business relationship, such as a Partner or an Employee, who will be required to guarantee he or she will maintain the Business’ confidence before entering the professional relationship.

The concerned Business (issuing this agreement) should take care to make sure it is appropriate to the relationship. That is, it cannot unlawfully sabotage the Recipient’s ability to function in the industry. Non-Compete agreements are governed by the Texas Business and Commerce Code (Tex. Bus. & Comm. Code Ann. §§ 15.50-15.52). When they are drafted, presented, and executed properly they can be a powerful tool to make sure the concerned Business’ Information remains safe from the Recipient while the Recipient may still successfully pursue his or her career.

Restrictions

The code requires a non-compete agreement to be reasonable in time, geographic area and scope of activity that is restrained. The agreement must not impose any greater restraint than necessary to protect the employer’s goodwill or other business interest. Furthermore, it must be executed at the time of employment and ancillary to or part of an enforceable agreement.

LawsSec. 15.50-52

How to Write

1 – Make Sure That Every Party Entering This Agreement Is Documented

If this agreement is to be applied in a correct matter, the introductory statement declaration must officially Name its participants. This statement, in “1. Purpose,” will present two blank lines exactly for this purpose. The concerned Business Entity’s Legal Name (as it appears on the books) must be recorded on the first blank line. Make sure to include any appropriate entity suffixes that are part of this entity’s Name.  The next space shall accept the Recipient’s Complete Name as it appears on his or her I.D. (i.e. Driver’s License)

2 – The Business Entity Must Indicate Its Standing On Non-Acceptable Recipient Behavior

The area in “2. Non-Compete/Nondisclosure” contains several statements, each defining a limitation or restriction the Business Entity intends to impose on Recipient Behavior through the execution of this document. Check each statement detailing a Recipient Restriction that must be included and leave any statement that does not apply to the Recipient unmarked.

The first checkbox statement defines the “Business Practices” the Recipient may not engage in. This will focus on keeping the Recipient from directly competing with the Business Entity’s products and services. Make sure to mark this check box if the Recipient must follow its directives The wording to designate the “Clients/Customers” of the Business Entity as off limits to the Recipient can apply to this document if the second statement is selected.The Recipient may also be limited from doing business with the “General Competitor(s)” of the Business Entity with the third checkbox. If one or more “Specific Competitor(s)” of the Business Entity are listed on the blank lines in the fourth statement and the checkbox is marked, the Recipient will be forbidden from engaging in Business Affairs with these named entities.The last checkbox statement will name the Business Entity’s “Employees” as entities the Recipient may not conduct any business with, once it is marked

3 – A Strict Definition of This Agreement’s Period of Effect Must Be Declared

The Time Period when this document’s restrictions will require Recipient Compliance will need to be precisely defined in the self-titled article “3. Time Period.” The time frame when the restrictions above will require Recipient Compliance is known as the Period of Effect. It must have a beginning and an end. Record how long these conditions are to be held in place once this document’s Effect becomes Active on the blank line in the statement beginning with the words “Recipient Warrants And Guarantees…”Next, one of two statements must be chosen to define the Start Date. If these responsibilities will activate upon the formal Execution of this contract then, mark the checkbox corresponding to the statement “Effective Date Of This Agreement” If not, then leave this check box unmarked.If the activity of this contract begins at the end of the Business Entity/Contract Recipient relationship, then mark the statement “Termination Of The Recipient’s Employment And/Or Business With The Company.”In “4. Purchase Option,” the manner in which this contract will terminate will be the subject of discussion. If the Business Entity is willing to nullify it in exchange for a Recipient Payment, then mark the checkbox next to the statement “The Company Shall Allow The Recipient…” Also, fill in the dollar amount required of the Recipient for relief from these terms written out on the first blank line and numerically entered on the second blank line. If not, then leave this box unmarked.If the Recipient must remain in compliance for the duration of this contract’s lifespan and any such release of terms will not be acceptable then mark the second checkbox.

4 – Record The Business Entity’s Intended Effective Region

These terms cannot be applied without a region specified for their Effect to be imposed. Formally Declare the Jurisdiction where these terms will be enforced by entering the City/State on the blank line in “5. Jurisdiction.” Regions may also be reported as Neighborhoods and Counties. If there is more than one Region of Effect, continue the report on an attachment.

5 – This Agreement’s Execution Is Dependent On The Signature Party’s Participation

Document the exact Date when the two parties named in the first section will gather to sign this paperwork, thus officially declaring their intention to follow its terms, using the three blank spaces provided in the statement “In Witness Whereof, The Parties Hereto Have Agreed And Signed…”The three blank spaces under the heading “The Company” require the attention of a Company Representative authorized to act as the Business Entity’s Signature Party. This individual will sign and print his or her name, define his or her Role or Title, then name the Date he or she has signed this document on behalf of the Business Entity issuing it.The individual defined as the Contract Recipient must furnish his or her Signature, his or her Printed Name, and the Date of his or her Signature using the blank lines in the “Recipient” column.


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