The Non-Compete Agreement Business To Business is essential in German commercial relationships where businesses need to protect their legitimate interests while maintaining fair competition. This document is commonly used in scenarios such as business sales, joint ventures, strategic partnerships, or when sharing sensitive business information. The agreement must carefully balance the protection of business interests with compliance with German competition law (GWB and UWG) and EU regulations. It typically includes specific provisions on restricted activities, territorial scope, duration, and consideration, while ensuring enforceability under German law. The document is particularly important in situations involving technology transfer, market entry partnerships, or business restructuring where protecting competitive advantages is crucial.
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1. Parties: Identification of the contracting businesses, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, including the business relationship between the parties and reason for the non-compete arrangement
3. Definitions: Clear definitions of key terms, including 'Competitive Activities', 'Restricted Territory', 'Restricted Period', and 'Confidential Information'
4. Scope of Non-Compete: Detailed description of prohibited competitive activities and specific business areas covered
5. Geographic Restrictions: Clear definition of the territorial scope where the non-compete obligations apply
6. Duration: Specific timeframe for the non-compete obligations, ensuring compliance with reasonable duration requirements under German law
7. Consideration: Description of the compensation or benefit provided in exchange for the non-compete obligations
8. Exceptions and Permitted Activities: Clear listing of activities that are explicitly allowed despite the non-compete provisions
9. Compliance with Competition Laws: Explicit acknowledgment of and compliance with German and EU competition laws
10. Breach and Remedies: Consequences of breach, including available remedies and potential penalties
11. Governing Law and Jurisdiction: Specification of German law as governing law and designation of competent courts
1. Related Companies: Section defining which affiliated companies are bound by or benefit from the agreement, used when corporate groups are involved
2. Post-Term Obligations: Specific obligations that survive the termination of the agreement, used for longer-term restrictions
3. Alternative Dispute Resolution: Mediation or arbitration provisions, used when parties prefer alternative dispute resolution to court proceedings
4. Severability and Carve-Out: Provisions for maintaining partial validity if certain clauses are found unenforceable, particularly important in complex agreements
5. Monitoring and Reporting: Procedures for monitoring compliance, used in high-value or high-risk agreements
6. Third-Party Rights: Provisions regarding the rights of third parties, used when the agreement affects affiliated companies or business partners
1. Schedule 1: Restricted Territory: Detailed maps or lists of geographic areas covered by the non-compete obligations
2. Schedule 2: Restricted Activities: Comprehensive list of specific business activities, products, or services covered by the non-compete
3. Schedule 3: Affiliated Companies: List of related companies bound by or benefiting from the agreement
4. Schedule 4: Existing Commitments: List of pre-existing obligations or commitments that are carved out from the non-compete
5. Appendix A: Consideration Details: Detailed breakdown of any financial or other consideration provided for the non-compete obligations
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