The Non-Compete Non-Circumvent Agreement is a critical legal instrument used in Canadian business contexts where parties need to protect their legitimate business interests, confidential information, and established relationships. This document is particularly relevant when sharing sensitive business information, engaging in potential business transactions, or hiring senior personnel. The agreement combines non-compete provisions (restricting competitive activities) with non-circumvent provisions (preventing direct dealings that bypass established business relationships). It must be carefully drafted to ensure enforceability under Canadian law, considering recent legislative changes and court decisions regarding restrictive covenants. The agreement typically includes specific temporal and geographical limitations, detailed descriptions of restricted activities, and clear definitions of protected relationships.
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1. Parties: Identification of the contracting parties, including full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the restrictions
3. Definitions: Detailed definitions of key terms including 'Confidential Information', 'Competing Business', 'Restricted Territory', 'Circumvention'
4. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographic limitations
5. Non-Circumvention Obligations: Restrictions on direct/indirect business relationships with protected parties and circumvention of the agreement
6. Confidentiality Obligations: Requirements regarding handling and protection of confidential information
7. Duration and Territory: Specific timeframes and geographical scope of restrictions
8. Acknowledgments: Party acknowledgments regarding reasonableness of restrictions and receipt of consideration
9. Remedies: Available remedies including injunctive relief and damages for breach
10. General Provisions: Standard contractual provisions including governing law, severability, and entire agreement
1. Intellectual Property Protection: Additional provisions specifically protecting IP rights, used when significant IP assets are involved
2. International Provisions: Specific provisions for cross-border enforcement, used when parties operate in multiple jurisdictions
3. Non-Solicitation Obligations: Additional restrictions on soliciting employees/customers, used when protecting human resources or customer relationships is crucial
4. Return of Materials: Provisions for returning confidential materials, used when physical or electronic materials are shared
5. Independent Contractor Relationship: Clarification of relationship status, used when agreement is not part of an employment relationship
6. Survival: Specific provisions about which obligations survive termination, used in more complex commercial relationships
1. Schedule A - Restricted Territory: Detailed description or map of geographical areas where restrictions apply
2. Schedule B - Restricted Activities: Comprehensive list of specific activities that are prohibited
3. Schedule C - Protected Relationships: List of specific customers, suppliers, or business relationships covered by non-circumvention
4. Schedule D - Consideration: Details of consideration provided for the restrictions, if separate from main employment/business agreement
5. Appendix 1 - Competitor List: Non-exhaustive list of known competitors or competing businesses for clarity
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology
Professional Services
Manufacturing
Financial Services
Healthcare
Biotechnology
Energy
Retail
Distribution
Consulting
Software Development
Research and Development
Telecommunications
Investment Banking
Real Estate
Relevant Teams
Executive Leadership
Business Development
Sales
Research and Development
Product Development
Strategic Planning
Investment
Operations
Technical Architecture
Client Services
Channel Management
Corporate Development
Mergers and Acquisitions
Relevant Roles
Chief Executive Officer
Chief Technology Officer
Senior Vice President
Business Development Manager
Sales Director
Technical Consultant
Senior Software Engineer
Investment Manager
Managing Director
Research Director
Product Manager
Channel Partner Manager
Strategic Account Executive
Chief Financial Officer
Operations Director
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