Non Disclosure Non Circumvention And Non Competition Agreement Template for United States

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Key Requirements PROMPT example:

Non Disclosure Non Circumvention And Non Competition Agreement

"I need a Non Disclosure Non Circumvention And Non Competition Agreement for a senior software developer joining my AI startup in March 2025, with specific provisions to protect our machine learning algorithms and client relationships across the United States and Canada."

Document background
The Non-Disclosure, Non-Circumvention, and Non-Competition Agreement is essential for businesses seeking comprehensive protection of their confidential information, business relationships, and competitive advantage. This agreement is particularly relevant in the United States where trade secret protection is governed by both federal and state laws. It is commonly used when engaging employees, contractors, or business partners who will have access to sensitive information or business opportunities. The agreement must be carefully drafted to ensure enforceability across different state jurisdictions, especially regarding non-compete provisions which face varying levels of restriction by state.
Suggested Sections

1. Parties: Identification of all parties to the agreement

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including Confidential Information, Restricted Business, Territory

4. Confidentiality Obligations: Scope of confidential information and detailed protection requirements, including use restrictions and security measures

5. Non-Circumvention Provisions: Restrictions on bypassing the disclosing party or directly engaging with their business relationships

6. Non-Competition Provisions: Scope, duration, and geographic limitations of competition restrictions, including specific prohibited activities

7. Term and Termination: Duration of agreement and conditions for termination, including notice requirements

8. Governing Law: Applicable jurisdiction and dispute resolution mechanisms

Optional Sections

1. Consideration: Details of any payment or value exchange when specific consideration beyond employment is provided

2. Return of Materials: Procedures for returning or destroying confidential information and verification requirements

3. Survival Clause: Provisions that continue after termination of the agreement

4. Assignment Rights: Rights and restrictions regarding the assignment of the agreement to other parties

5. Severability: Provisions for maintaining validity of remaining clauses if certain provisions are found unenforceable

Suggested Schedules

1. Schedule A - Confidential Information: Detailed list and categories of protected information types

2. Schedule B - Restricted Activities: Specific activities prohibited under the non-compete provisions

3. Schedule C - Geographic Restrictions: Detailed description or map of territories where non-compete applies

4. Schedule D - Consideration Details: Breakdown of any payments, benefits, or other consideration provided under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Defend Trade Secrets Act (DTSA): Federal law enacted in 2016 that provides uniform federal protection for trade secrets and allows companies to file trade secret cases in federal court

Uniform Trade Secrets Act (UTSA): Model law adopted by most states that provides consistent state-level protection for trade secrets and defines trade secret misappropriation

State Non-Compete Laws: State-specific regulations governing the enforceability of non-compete agreements, including restrictions on duration, geographic scope, and applicability to certain workers

Fair Labor Standards Act (FLSA): Federal law that establishes employment standards and may impact the enforceability of restrictive covenants based on employee classification

State Contract Laws: State-specific laws governing contract formation, consideration requirements, and enforcement of contractual agreements

Statute of Frauds: Legal requirement that certain contracts must be in writing and signed to be enforceable

Sherman Antitrust Act: Federal law prohibiting anti-competitive business practices, which may affect the scope and enforceability of non-compete and non-circumvention provisions

Federal Trade Commission Act: Federal law governing unfair competition practices and proposed regulations regarding non-compete agreements

First Amendment Considerations: Constitutional protections that may limit the scope of confidentiality and non-disclosure provisions

Right to Work Laws: State laws that may impact the enforceability of restrictive covenants in employment relationships

FTC Proposed Non-Compete Ban: Pending federal regulation that would potentially ban or severely restrict the use of non-compete agreements nationwide

State Employment Laws: State-specific regulations governing employment relationships and their impact on restrictive covenants

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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