Non-competition, Non-solicitation and Confidentiality Agreement

Summary

This template Non-competition, Non-solicitation and Confidentiality Agreement can be used by an acquiring company that intends to hire or retain employees of the target company in connection with an acquisition. This template can be included in a written employment agreement or in a standalone agreement. This template includes practical guidance and drafting notes. The buyer in an M&A transaction may, following the transaction, hire former employees of the seller to work for the newly acquired target. In an effort to ensure the success of the target, the buyer may seek to include various protective measures to limit a hired employee from competing with or otherwise disrupting the target business once the transaction has closed. Such measures, which may be addressed in an ancillary agreement such as the one below, include: (1) non-competition, which prevents an employee from competing with the business of the target; (2) non-solicitation, which prevents an employee from hiring key ...