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Non-Solicitation and Non-Compete Agreement

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Confidentiality and Non-Competition Agreement Between Employer and Executive Recruiter

Agreement made on the day of , 20, between of , referred to herein as Employee, and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Employer.

Whereas, Employer is in the business of executive recruiting, which includes, but is not limited to, recruiting currently employed, management-level personnel and marketing them to our client companies for placement; and

Whereas, Employee desires to work as an executive recruiter for Employer; and

Whereas, Employer desires to hire Employee as an executive recruiter provided Employee executes this Agreement; 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 processes, customers, services, pricing policies, and related matters. In addition, Employer may provide training to Employee in relation to these areas and 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:

I. 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 executive recruiting 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 processes, customers, services, suppliers, and related matters, and also includes information relating to research, development, inventions, manufacture, purchasing, accounting, and marketing.

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.

II. Non-Competition

A. Employee Conduct with Respect to Competitors.

During the term of Employee's employment by Employer and for 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 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.

III. 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 I 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 I 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.

D. Choice of Law.

The validity, interpretation, and performance of this agreement shall be controlled by and construed under the laws of the state of .

E. Attorneys' Fees.

If an attorney shall be retained to interpret or enforce the provisions of this agreement, the prevailing party shall be entitled to reasonable attorneys' fees, including any such fees set by the arbitrator, trial or appellate court upon trial or appeal.

IV. Mandatory Arbitration

Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, any dispute under this agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

WITNESS our signatures as of the day and date first above stated.

________________, INC.

By:

Title:

Employee

Name:

Office in Corporation:

Enter text✕

What a Non-Solicitation and Non-Compete Agreement Covers

A Non-Solicitation and Non-Compete Agreement is a contract between parties that limits solicitation of clients, customers, or employees and restricts competitive activities for a defined period and geographic area. Common in employment, sale-of-business, and contractor contexts, these agreements specify restricted activities, duration, geographic scope, consideration, and remedies for breach. Enforceability depends on state law and reasonableness; courts weigh legitimate business interests against public policy and an individual's right to work. Parties often include severability and choice-of-law clauses to reduce risk of total invalidation.

Why organizations include these clauses

Non-solicitation and non-compete clauses protect proprietary customer relationships, trade secrets, and investment in workforce training while providing a contractual basis for injunctive relief and damages when breaches occur. Properly drafted provisions reduce business disruption after departures or sales.

Why organizations include these clauses

Who typically uses this agreement and when

Employers, acquirers, legal counsel, and HR professionals commonly use these agreements to protect business interests when hiring key personnel or closing transactions.

  • Employers hiring senior staff or sales teams who will access trade secrets or client lists.
  • Buyers and sellers in M&A who want post-closing protection for transferred customer relationships.
  • Independent contractors or consultants given client introductions or proprietary methods.

The agreement is also used by contractors, investors, and consultants when confidential access or client-facing roles create competitive risk.

Who signs and executes these agreements

Employer — General Counsel

Corporate counsel or HR leaders negotiate scope and consideration, assess enforceability by state, and coordinate execution and record retention to support potential future enforcement.

Employee / Contractor

Individual signers should understand restricted activities, duration, and compensation; they often seek counsel to confirm reasonableness and whether state law limits enforceability.

Essential information to include

Execution Date: MM/DD/YYYY
Parties: Full legal names
Restricted Activities: Clear, specific list
Duration: Time period defined
Geographic Scope: Specific regions
Consideration: Money or benefits

Consequences of a flawed agreement

Unenforceability: Entire clause voided
Litigation Costs: High defense expenses
Injunction Risk: Court-ordered relief possible
Damages: Monetary liability
Reputational Harm: Employee relations impacted
Regulatory Scrutiny: Antitrust or labor issues

Common drafting and execution pitfalls

  • Overbroad geographic or activity restrictions that courts deem unreasonable and therefore unenforceable.
  • Failing to provide adequate consideration for post-employment restrictions, making the clause voidable.
  • Applying employee-only language to independent contractors without adjusting for contractor status and enforceability.
  • Using vague terms like 'all clients' instead of clearly defined customer lists or categories.

Step-by-step: completing and executing the agreement

Follow a consistent sequence: gather facts, draft clear restrictions, confirm consideration, obtain required signatures, and preserve records for enforcement.

  • 01
    Gather details: Collect party names, dates, and the customer list.
  • 02
    Draft scope: Define prohibited activities and carve-outs clearly.
  • 03
    Set limits: Choose reasonable duration and geography.
  • 04
    Execute: Obtain signatures and retain audit trail.

How digital completion and delivery typically proceed

Electronic workflows reduce execution time while preserving evidence of consent and signature attribution when properly configured for legal validity.

  • Upload document: Add final agreement file to the platform.
  • Place fields: Insert signature, date, and initial fields.
  • Authenticate signer: Use email, SMS code, or stronger methods as needed.
  • Sign and archive: Signers complete and signed copy is stored.

Recommended digital workflow settings

Configure workflows for traceable signatures, clear ordering, and secure retention to support enforceability and audits.

Field Configuration
Authentication Email + optional SMS code
Signing Order Sequential or parallel as needed
Reminders Automated cadence, 3 reminders
Retention Secure storage with audit trail

Technical needs for eSigning and evidence

Use a platform that provides strong audit trails, secure storage, and configurable signer authentication to support legal validity.

  • Integrations: CRM and HR systems supported
  • File formats: PDF, DOCX supported
  • Auth options: Email, SMS, KBA, SSO

Timing considerations and typical deadlines

Set internal milestones for review, signature, and post-signature retention. Reasonableness of time limits is key when courts assess enforceability.

Signature Window:

Complete signing within 30 days of execution to avoid stale signatures

Review Period:

Allow 5–10 business days for legal review before signing

Renewal Notice:

Specify any renewal or re-negotiation window

Enforcement Documentation:

Preserve evidence immediately after suspected breach

Limitations Caution:

State statutes or case law may restrict duration

Key stages from negotiation to potential enforcement

Track the agreement lifecycle from negotiation through signature, monitoring, notice, and enforcement to maintain readiness for disputes.

01

Negotiation

Draft terms and define legitimate business interests.

02

Execution

Sign and store the fully executed agreement securely.

03

Monitoring

Monitor post-termination activity for potential breaches.

04

Enforcement

Provide notice and consider injunctive relief if warranted.

How signNow compares on price and fundamental features

Comparison of starting price and core capabilities for common eSignature vendors. signNow is listed first as the reference platform.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Yes Yes Yes Yes
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Practical examples of digital execution for restrictive agreements

Organizations use electronic signatures to speed execution, maintain compliance evidence, and centralize records for potential enforcement.

Tech Data (internal workflow)

Tech Data streamlined contract workflows to secure signatures quickly

  • Bulk send and integrations reduced manual tasks
  • Bob Dutkowsky said airSlate SignNow helped improve internal and external customer service while increasing speed to revenue.

Martin Properties (real estate)

A regional broker executed confidentiality and non-solicit clauses remotely

  • Mobile signing allowed field agents to finalize agreements on-site
  • Tim Martin noted he can process and execute documents online with compliance and security, accelerating closings.

Practical drafting and execution tips

Adopt clear language, limited scope, and consistent procedures to improve enforceability and reduce dispute risk.

Tailor scope precisely
Limit restrictions to specific roles, customers, or confidential information directly tied to legitimate business interests.
Provide consideration
Ensure the employee or contractor receives explicit consideration for post-employment limits.
Prefer narrow geography
Choose the smallest area necessary to protect the business; avoid nationwide bans when not justified.
Preserve evidence
Keep executed PDFs, timestamps, IP logs, and audit trails in secure storage for potential enforcement.

Frequently asked questions and practical answers

Answers to common legal and practical questions about drafting, signing, and enforcing non-solicitation and non-compete agreements.


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