Non-Solicitation Sample Clauses

Non-Solicitation. Executive agrees that during the period of employment with the Company and for twelve (12) months after the date Executive’s employment is terminated for any reason, Executive will not, either directly or through others, solicit or encourage or attempt to solicit or encourage any employee, independent contractor, or consultant of the Company to terminate his or her relationship with the Company in order to become an employee, consultant or independent contractor to or for any other person or entity.
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Non-Solicitation. During the Directorship Term and for a period of three (3) years thereafter, the Director shall not interfere with the Company’s relationship with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term and/or at any time during the one year period prior to the termination of the Directorship Term, was an employee or customer of the Company or otherwise had a material business relationship with the Company.
Non-Solicitation. During the period commencing on the Effective Date and ending one year following the Termination Date, the Company shall not, without the Advisor’s prior written consent, directly or indirectly; (i) solicit or encourage any person to leave the employment or other service of the Advisor or its Affiliates; or (ii) hire, on behalf of the Company or any other person or entity, any person who has left the employment within the one year period following the termination of that person’s employment with the Advisor or its Affiliates. During the period commencing on the date hereof through and ending one year following the Termination Date, the Company will not, whether for its own account or for the account of any other Person, intentionally interfere with the relationship of the Advisor or its Affiliates with, or endeavor to entice away from the Advisor or its Affiliates, any person who during the term of the Agreement is, or during the preceding one-year period, was a tenant, co-investor, co-developer, joint venturer or other customer of the Advisor or its Affiliates.
See more samples of Non-Solicitation

Non-Solicitation: Everything you need to know

A non-solicitation agreement is usually signed by top-level executives, managers, and employees of any business. It protects the company's information while ensuring consumer loyalty to the business rather than the people associated with the business. It is a document or a clause within a document designed to protect the clients as well as employees of an organization.

Losing one's employees or clients due to creative differences can be financially stressful for any organization. Non-solicitation basically helps in ensuring that a former employee or client wouldn't try to steal your ideas or current clients after parting with the company. This helps in steering clear of any threat that a competitor could pose because of leaked information.

A non-solicitation agreement is a safety net for any organization. It helps in canceling out any potential threat that firing an employee might pose in the future. It helps the organization feel secure and, in turn, helps in making decisions without the fear of any information getting leaked.

A non-solicitation agreement is a contract by which an employee is bound by the law not to solicit a company's clients, customers, or employees for his or her own benefit. Neither can the employee do any solicitation for a competitor of the previous employer after leaving the company. Any business owner needs to know a few things about the same in order to use it and protect themselves from any wrongdoings. Here is everything you need to know about the agreement:

1. Where is a non-solicitation agreement used?

A non-solicitation agreement can be used by all organizations. Businesses with a less diverse consumer pool must be more careful. For example, a business selling something as simple as car parts can have an ex-employee reveal its pricing schedule in front of a rival. This could potentially lead to the business closing down because the rival would know exactly what tactics you use for marketing.

2. When is a non-solicitation agreement signed?

This type of agreement can be presented to you before joining the firm while working at the firm or while parting ways with the firm.

3. What makes a non-solicitation agreement enforceable?

In order for the agreement to be enforceable, the employer must make sure that,

  • The employer has a valid reason for enforcing this contract.
  • The employer's customer base is not readily available to the public.
  • Employees and consumers are given a choice to leave at their own will.
  • The contract is not ambiguous.

4. What must a non-solicitation agreement include?

There are 3 things that need to be included in a typical non-solicitation agreement:

  • The contract must mention how long the employee needs to abide by the agreement, taking their term of employment into consideration and in what geographical area it is applicable.
  • Before signing the agreement, it is necessary for the employee to give a statement stating that he/she has received sufficient consideration.
  • Also, the employee needs to give a statement that he/she won't violate the agreement.

Why is non-solicitation important?

Non-solicitation agreements are tools that are routinely used by organizations to minimize the value of tangible as well as intangible assets. Let use an example through the film industry.

Imagine a scenario where a creative director hires a renowned set designer to work with, who gets a substantial amount of investors or new clients for the agency. After a certain period, they start having creative differences, because of which the assistant decides to part ways with the agency.

In this situation, a non-solicitation agreement can help in convincing the set designer to stay till the end of that project. It is a way to keep the clients and your ideas safe and continue with the project with a minor setback.

Now, in this situation, if the set designer wouldn't have signed the agreement, he/she could've gone to a rival company with the same clients as well as ideas without any legal repercussion. It can be requested either before getting into business with the employee or client or after the business relationship comes to an end.

In the movie Jerry Maguire, Tom Cruise's character gets fired from a sports agency. He tries to get his co-worker and clients to leave along with him. He successfully gets just one client, Rod Tidwell, to leave with him. Now, the number is small, but every client matters for a business.

In this situation, if Jerry Maguire would've signed a non-solicitation agreement while joining, he would've had to face major legal consequences for pulling such a stunt. In real life, if he would've tried to poach a client and a partner after signing the agreement, his agency could've sued him for the same.

A few more examples explained through case studies

Netflix vs. Fox Studios

In 2016, Fox Studios and Netflix made headlines because of a poaching battle between the two. Netflix had allegedly poached Fox Studios' employees. They are currently the promotions and drama programming development bigwigs at Netflix, Marco Waltenberg and Tara Flynn.

Now, in this situation, the employees had signed an employment contract with Fox Studios. Due to this, they could fight a legal fight. At the same time, a non-solicitation agreement would've helped in protecting actors and other staff working at Fox Studios from leaving with them.

Tech CEOs

In 2015, the world's topmost companies, Apple, Google, Intel, and Adobe, had to face a lawsuit due to a secret agreement between the companies. They had to pay $415 million for having a role in this pact. This was supposed to be a no-poach pact wherein the CEOs of the companies had amicably decided not to poach each other's employees.

This arrangement was perfect for them, but their employees were infuriated. They felt that these companies had restricted their professional growth process. Such a pact not only restricted their ability to grow in Information technology but also stifled their attempts to earn higher salaries.

Now, this pact was a by-product of the insecurity of the CEOs over their confidential data and employee reliability. They didn't want any information to get leaked through their employees. A non-solicitation agreement sees to it that no employee can leak information about their former company. Such a clause or document helps the company to feel secure about letting their employees go.

No matter what kind of business you are starting, it is always better to be safe than sorry. A non-solicitation is a metaphorical shell that can protect a company's valuable information as well as clientele. Prevention is always better than cure and you don't want to lose out on an opportunity to turn the vision for your business into a reality because of a third person. Just like you need the support of your peers in life, you need the support of the law when it comes to business.

More Samples of Non-Solicitation

Non-Solicitation. Neither party shall knowingly solicit or hire, any of the other party’s employees involved in the Services during the term of the applicable Order Form and for a period of six (6) months from the termination thereof, without the express written consent of the other party. This provision shall not restrict the right of either party to solicit or recruit generally in the media.
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Non-Solicitation. Except as set forth in Section 4.05 hereof, the Shareholder hereby agrees that the Shareholder shall not, nor shall it authorize any of his or her controlled Affiliates’ directors, officers, employees, investment bankers, attorneys, accountants or other advisors or representatives (collectively, his or her “Representatives”) to, directly or indirectly, (a) solicit, initiate, propose or encourage, or take any other action to knowingly facilitate, any Takeover Proposal or any inquiries or offers or the making of any proposal or any other effort or attempt that could reasonably be expected to lead to a Takeover Proposal, (b) enter into, continue or otherwise participate in any communications or negotiations regarding, or furnish to any Person any information with respect to, or otherwise knowingly cooperate in any way with any Person with respect to, any Takeover Proposal or any inquiries or offers or the making of any proposal or any other efforts or attempt that could reasonably be expected to lead to a Takeover Proposal, (c) approve or recommend, or publicly propose to approve or recommend, any Takeover Proposal, (d) make any statement or proposal inconsistent with the Company Recommendation or (e) enter into any Acquisition Agreement constituting or relating to, or which is intended to or is reasonably likely to lead to, any Takeover Proposal or enter into any agreement or agreement in principle requiring the Shareholder to abandon, terminate or breach his or her obligations hereunder or fail to consummate the transactions contemplated hereby. The Shareholder shall, and shall direct his or her Representatives to, immediately cease and cause to be terminated all existing communications and negotiations with any Person conducted prior to the execution of this Agreement by or on behalf of the Shareholder or any of his or her Representatives with respect to any Takeover Proposal. The Shareholder shall as promptly as possible (and in any event within 24 hours) (i) notify Parent of the identity of any Person approaching the Shareholder with a Takeover Proposal or indication by any Person that it is considering making a Takeover Proposal and (ii) provide Parent a copy of any such Takeover Proposal (or, where no such copy is available, a reasonably detailed description of such Takeover Proposal, indication, inquiry or request), including draft agreements or term sheets submitted in connection therewith (or, where no such copy is available, a reasonably detailed d...
Non-Solicitation. Client agrees not to solicit or hire any personnel of Red Hat involved with the delivery of Services in connection with any Order Form during the term of and for twelve (12) months after termination or expiration of such Order Form; provided that Client may hire an individual employed by Red Hat who, without other solicitation, responds to advertisements or solicitations aimed at the general public.
Non-Solicitation. 20.1 Neither Party shall, for the term of this Agreement and for a period of 6 months after its termination or expiry, employ or contract the services of any person who is or was employed or otherwise engaged by the other Party at any time in relation to this Agreement [without the express written consent of that Party].
Non-Solicitation. From and after the Closing Date, the Seller and any of its affiliates hereby agrees that it will not take any action or permit or cause any action to be taken by any of its agents or affiliates, or by any independent contractors on its behalf, to personally, by telephone or mail, solicit a Mortgagor under any Mortgage Loan for the purpose of refinancing a Mortgage Loan, in whole or in part, without the prior written consent of the Purchaser. It is understood and agreed that all rights and benefits relating to the solicitation of any Mortgagors and the attendant rights, title and interest in and to the list of such Mortgagors and data relating to their Mortgages (including insurance renewal dates) shall be transferred to the Purchaser pursuant hereto on the Closing Date and neither the Seller nor any of its respective affiliates shall take any action to undermine these rights and benefits. Notwithstanding the foregoing, it is understood and agreed that the Seller or any of its respective affiliates may advertise its availability for handling refinancings of mortgages in its portfolio, including the promotion of terms it has available for such refinancings, through the sending of letters or promotional material, so long as it does not specifically target Mortgagors and so long as such promotional material either is sent to the mortgagors for all of the mortgages in the A-quality servicing portfolio of the Seller and any of its affiliates (those it owns as well as those serviced for others) or sent to all of the mortgagors who have specific types of mortgages (such as FHA, VA, conventional fixed-rate or conventional adjustable-rate), or sent to those mortgagors whose mortgages fall within specific interest rate ranges. Promotions undertaken by the Seller or by any affiliate of the Seller which are directed to the general public at large (including, without limitation, mass mailing based on commercially acquired mailing lists, newspaper, radio and television advertisements), shall not constitute solicitation under this Section 30.
Non-Solicitation. The Executive agrees that during the Restricted Period, other than in connection with the Executive’s duties under the Agreement, the Executive shall not, and shall not use any Confidential Information or Trade Secrets to, directly or indirectly, either individually or as an owner, principal, partner, stockholder, manager, contractor, distributor, lender, investor, consultant, agent, employee, co-venturer or as a director or officer of any corporation or association, or in any other manner or capacity whatsoever, and whether personally or through other persons:
Non-Solicitation. Employee agrees that for a period of twelve (12) months immediately following the Effective Date of this Agreement, Employee shall not directly or indirectly solicit any of the Company’s employees to leave their employment at the Company.
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