Stand Alone Confidentiality and Noncompetition Agreement with Employee
Agreement made on the ____________ (date) , between __________________
(Name of Employee) of __________________________________________________
______________________ (street address, city, state, zip code) , referred to herein
as Employee , and ____________________ (Name of Employer) , a corporation
organized and existing under the laws of the state of __________________, with its
principal office located at _________________________________________________
____________________________ (street address, city, state, zip code) , referred to
herein as Employer .
Whereas, Employer has employed Employee to devote his full time, attention,
and energies to the business of Employer and to use his best efforts, skill, and abilities
in performing the specific duties of such employment, and Employee shall not, without
prior consent of Employer, either directly or indirectly, engage in any other occupation,
profession, or business; and
Whereas, as a consequence of the employment by Employer, Employee will
have access to information not generally known to the general public or in the industry
in which Employer is or may become engaged about Employer's products, processes,
customers, services, suppliers, pricing policies, and related matters. In addition,
Employer may provide training to Employee in relation to these areas. It is the desire of
the Employer and Employee that all such training and information be and remain
confidential.
Now, therefore, for and in consideration of the mutual covenants contained in this
Agreement, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
1. Confidentiality
A. Nondisclosure.
Employee shall not, during or after the term of this Agreement, directly or
indirectly, use, disseminate, or disclose to any person, firm, or other business
entity for any purpose whatsoever, any information not generally known in the
industry in which Employer is or may be engaged which was disclosed to
Employee or known by Employee as a consequence of or through his
employment by Employer. This includes information regarding Employer's
products, processes, customers, services, suppliers, and related matters, and
also includes information relating to research, development, inventions,
manufacture, purchasing, accounting, engineering, marketing, merchandising,
and selling.
B. Confidential Relationship.
Employee shall hold in a fiduciary capacity for the benefit of Employer all
information described in Paragraph A above, along with any and all inventions,
discoveries, concepts, ideas, improvements or know-how, discovered or
developed by Employee, solely or jointly with other Employees, during the term
of this Agreement, which may be directly or indirectly useful in or related to the
business of Employer or its affiliates, or may be within the scope of its or their
research or development work.
C. Customer Lists. The Employee shall, at the time of and during
employment, furnish a complete list of all of the correct names and places of
businesses of all its customers, immediately notify Employer of the name and
address of any new customer, and report all changes in location of old
customers, so that upon the termination of employment, Employer will have a
complete list of the correct names and addresses of customers with whom
Employee has dealt.
D. Return of Documents. To protect the interests of Employer, Employee
agrees that, during or after the termination of Employee's employment by
Employer, all documents, records, notebooks, and similar repositories containing
such information described in Paragraphs A, B and C above, including copies of
such items, then in Employee's possession or work area, whether prepared by
Employee or others, are the property of Employer and shall be returned to
Employer upon Employer's request.
2. Noncompetition
A. Employee Conduct with Respect to Competitors.
During the term of Employee's employment by Employer and for ______
(number) years after termination of such employment, Employee agrees that
Employee will not, without the prior written consent of Employer, directly or
indirectly, whether as an Employee, officer, director, independent contractor,
consultant, stockholder, partner, or otherwise, engage in or assist others to
engage in or have any interest in any business which competes with Employer in
any geographic area in which Employer markets or has marketed its products
during the year preceding termination.
B. Solicitation of Employees. Employee agrees that during the term of
Employee's employment and for ______ (number) years after the termination of
such employment, Employee will not induce or attempt to induce any person who
is an Employee of Employer to leave the employ of Employer and engage in any
business which competes with Employer.
C. Maximum Restrictions of Time, Scope, and Geographic Area
Intended.
The parties agree and acknowledge that the time, scope and geographic
area and other provisions of this Agreement have been specifically negotiated by
the parties, and Employee specifically agrees that such time, scope and
geographic areas, and other provisions are reasonable under these
circumstances. Employee further agrees that if, despite the express agreement
of the parties to this Agreement, a court should hold any portion of this
Agreement unenforceable for any reason, the maximum restrictions of time,
scope and geographic area reasonable under the circumstances, as determined
by the court, will be substituted for the restrictions held unenforceable.
3. Breach of Agreement
A. Bonus Forfeiture.
If Employee, without written consent of Employer, fails to comply with any
provision of this Agreement, then Employee's right to any bonus to which
Employee would otherwise be entitled shall terminate and the Employer's
obligation to make any such payment shall cease.
B. Additional Remedies.
Employee agrees that violating Section 1 of this Agreement at any time,
including during litigation, will produce severe damage and injury to Employer. In
the event of the breach of, or threatened breach by Employee of Section 1 of
this Agreement, the Employer shall be entitled to seek injunctive relief, both
preliminary and permanent, enjoining and restraining such breach or threatened
breach. Such remedies shall be in addition to all other remedies available to the
Employer in law or in equity, including but not limited to the Employer's right to
recover from the Employee any and all damages that may be sustained as a
result of the Employee's breach.
C. Agreement Survives Termination.
All rights of the parties pursuant to this Agreement shall survive any
termination.
4. Severability
The invalidity of any portion of this Agreement will not and shall not be deemed to
affect the validity of any other provision. If any provision of this Agreement is held to be
invalid, the parties agree that the remaining provisions shall be deemed to be in full
force and effect as if they had been executed by both parties subsequent to the
expungement of the invalid provision.
5. No Waiver
The failure of either party to this Agreement to insist upon the performance of any
of the terms and conditions of this Agreement, or the waiver of any breach of any of the
terms and conditions of this Agreement, shall not be construed as subsequently waiving
any such terms and conditions, but the same shall continue and remain in full force and
effect as if no such forbearance or waiver had occurred.
6. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of _____________.
7. Notices
Unless provided herein to the contrary, any notice provided for or concerning this
Agreement shall be in writing and shall be deemed sufficiently given when sent by
certified or registered mail if sent to the respective address of each party as set forth at
the beginning of this Agreement.
8. Attorney’s Fees
In the event that any lawsuit is filed in relation to this Agreement, the
unsuccessful party in the action shall pay to the successful party, in addition to all the
sums that either party may be called on to pay, a reasonable sum for the successful
party's attorney fees.
9. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and
any prior understanding or representation of any kind preceding the date of this
Agreement shall not be binding upon either party except to the extent incorporated in
this Agreement.
10. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either
party in connection with this Agreement shall be binding only if placed in writing and
signed by each party or an authorized representative of each party.
11. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may
not be assigned or transferred to any other person, firm, corporation, or other entity
without the prior, express, and written consent of the other party.
12. Counterparts
This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute but one and
the same instrument.
13. Compliance with Laws
In performing under this Agreement, all applicable governmental laws,
regulations, orders, and other rules of duly-constituted authority will be followed and
complied with in all respects by both parties.
14. In this Agreement, any reference to a party includes that party's heirs, executors,
administrators, successors and assigns, singular includes plural and masculine includes
feminine.
WITNESS our signatures as of the day and date first above stated.
_______________________
(Name of Employer)
By:____________________________ ___________________________
___________________________ (P rinted Name of Employee)
(P rinted Name & Office in Corporation) __________________________
___________________________ (Signature of Employee)
(Signature of Officer)
WITNESS our signatures as of the day and date first above stated.
________________________ _________________________
(P rinted Name) (P rinted Name)
________________________ _________________________
(Signature of Seller) (Signature of Buyer)
WITNESS our signatures as of the day and date first above stated.
____________________________
(Name of Employer)
________________________ By:________________________________
(P rinted Name) __________________________
________________________ (P rinted Name & Office in Corporation)
(Signature of Employee) __________________________
(Signature of Officer)