Non Solicitation Agreement Between Two Companies

Non Solicitation Agreement Between Two Companies Template for Canada

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Key Requirements PROMPT example:

"I need a Non Solicitation Agreement Between Two Companies for a software development firm and a consulting company in Ontario, primarily focused on preventing employee poaching and protecting client relationships for 24 months, starting March 1, 2025."

Document background

A Non-Solicitation Agreement Between Two Companies is essential when businesses enter into collaborative relationships or have access to each other's valuable business contacts and human resources. This document, particularly relevant in the Canadian business landscape, protects companies from the risk of losing valuable employees, customers, or business opportunities to their business partners. It is commonly used in joint ventures, service agreements, strategic partnerships, or any situation where companies share sensitive information about their workforce or client base. The agreement must carefully balance business protection with Canadian competition laws, ensuring restrictions are reasonable in scope, duration, and geographic reach. Key considerations include compliance with federal and provincial legislation, enforceability under common law principles, and specific industry regulations that may affect the scope of restrictions.

Suggested Sections

1. Parties: Identifies and defines the companies entering into the agreement, including their legal names, registration numbers, and principal places of business

2. Background: Explains the context and purpose of the agreement, including the business relationship between the parties

3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Solicitation', 'Restricted Period', and 'Restricted Entities'

4. Scope of Non-Solicitation: Details the specific types of solicitation that are prohibited, including customer, employee, and business opportunity restrictions

5. Duration: Specifies the time period during which the non-solicitation obligations will remain in effect

6. Geographic Scope: Defines the geographical areas where the restrictions apply

7. Consideration: States the consideration being provided in exchange for the non-solicitation commitments

8. Exceptions: Lists permitted activities that would otherwise fall under the definition of solicitation

9. Remedies: Outlines the consequences of breach and available remedies, including injunctive relief

10. General Provisions: Standard contract clauses including governing law, entire agreement, amendments, and severability

Optional Sections

1. Mutual Non-Solicitation: Used when both parties agree to reciprocal non-solicitation obligations rather than one-way restrictions

2. Confidentiality: Include when the parties need to exchange confidential information and require additional protection beyond the non-solicitation provisions

3. Non-Competition: Added when broader restrictions on competitive activities are necessary, subject to careful drafting to ensure enforceability

4. Survival: Specifies which obligations continue after the agreement terminates, particularly relevant for longer-term business relationships

5. Assignment: Include when either party may need to transfer their rights or obligations under the agreement

6. Notice Requirements: Details formal communication procedures between parties, particularly important for larger organizations

7. Dispute Resolution: Include specific procedures for resolving disputes, such as mandatory mediation or arbitration

Suggested Schedules

1. Schedule A - Restricted Entities: List of specific customers, employees, or business partners who are subject to non-solicitation restrictions

2. Schedule B - Restricted Territory: Detailed description or map of the geographic areas where restrictions apply

3. Schedule C - Permitted Activities: Comprehensive list of activities that are explicitly allowed despite the general non-solicitation restrictions

4. Appendix 1 - Contact Information: Key contact details for both parties for notices and communications

5. Appendix 2 - Industry-Specific Terms: Additional definitions or terms specific to the industry or business context

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology

Professional Services

Manufacturing

Healthcare

Financial Services

Education

Telecommunications

Consulting

Research & Development

Information Technology

Engineering

Biotechnology

Legal Services

Recruitment

Business Services

Relevant Teams

Legal

Human Resources

Executive Leadership

Business Development

Compliance

Corporate Development

Strategic Partnerships

Contract Administration

Risk Management

Commercial Operations

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Human Resources Director

Business Development Manager

Chief Operating Officer

Corporate Counsel

Compliance Officer

HR Manager

Recruitment Manager

Partnership Director

Legal Counsel

Contract Manager

Chief Commercial Officer

Strategic Alliance Manager

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Let's create your Non Solicitation Agreement Between Two Companies

Authors

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