The Confidentiality And Restrictive Covenant Agreement is essential for businesses operating in the United States seeking to protect their proprietary information and maintain competitive advantage. This agreement is typically implemented when onboarding new employees or contractors who will have access to sensitive information, or during business transactions where confidential information needs to be shared. It combines standard confidentiality provisions with specific restrictive covenants that limit post-employment competitive activities. The agreement must be carefully drafted to ensure compliance with both federal legislation and state-specific requirements, particularly given the varying approaches to non-compete enforcement across different states.
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1. Parties: Identification of the contracting parties and their legal status
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including definition of confidential information
4. Confidentiality Obligations: Detailed obligations regarding the protection, use, and disclosure of confidential information
5. Non-Competition Provisions: Scope, duration, and geographic limitations of competitive activity restrictions
6. Non-Solicitation Provisions: Restrictions on soliciting employees, customers, or suppliers, including duration and scope
7. Term and Termination: Duration of obligations and circumstances under which the agreement may be terminated
8. Remedies: Available remedies in case of breach, including injunctive relief and damages
9. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and severability
1. Return of Materials: Requirements for returning or destroying confidential materials upon termination or request
2. Intellectual Property Rights: Provisions regarding ownership and protection of intellectual property rights
3. Garden Leave: Provisions for paid leave during restriction period, typically for senior executives
4. Consideration: Specific consideration provided in exchange for restrictive covenants
5. Survival: Provisions specifying which obligations survive termination of the agreement
1. Schedule of Confidential Information: Detailed list or categories of specific confidential information covered by the agreement
2. Schedule of Restricted Territories: Geographic areas where non-compete and non-solicitation restrictions apply
3. Schedule of Restricted Customers: List of specific customers or customer categories subject to non-solicitation provisions
4. Schedule of Restricted Business Activities: Detailed description of business activities restricted under the non-compete provisions
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