Non Solicitation Agreement Between Two Companies

Non Solicitation Agreement Between Two Companies Template for Denmark

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Document background

The Non-Solicitation Agreement Between Two Companies is a crucial legal instrument used when businesses need to protect their human and business relationships from solicitation by other companies. This document is particularly relevant in situations such as business partnerships, joint ventures, or when companies are engaging in close collaboration where they may gain detailed knowledge of each other's key personnel, clients, or business relationships. Governed by Danish law and compliant with EU regulations, the agreement typically includes specific provisions about who cannot be solicited, the duration of restrictions, geographical limitations, and consequences of breach. It's commonly used in competitive industries where talent and business relationships are vital assets, and companies need mutual assurance against poaching of employees or clients. The agreement must be carefully drafted to ensure it remains enforceable under Danish law while not unduly restricting competition or trade.

Suggested Sections

1. Parties: Identification of the contracting companies, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, existing business relationship, and purpose of the non-solicitation arrangements

3. Definitions: Key terms used in the agreement, including 'Solicitation', 'Restricted Persons', 'Confidential Information', and 'Restricted Period'

4. Scope of Non-Solicitation: Detailed description of prohibited solicitation activities and specific categories of persons/entities covered

5. Duration and Territory: Temporal and geographical scope of the non-solicitation obligations

6. Mutual Obligations: Specific commitments and restrictions agreed upon by both parties

7. Exceptions: Permitted activities that would otherwise fall under the non-solicitation restrictions

8. Remedies for Breach: Consequences of violating the agreement, including potential damages and enforcement mechanisms

9. Confidentiality: Obligations regarding the confidentiality of business information exchanged

10. Term and Termination: Duration of the agreement and circumstances for early termination

11. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for dispute resolution

Optional Sections

1. Non-Compete Provisions: Additional restrictions on competitive activities, if broader protection is needed and compliant with competition laws

2. Assignment: Rules for transferring rights and obligations under the agreement, particularly relevant for corporate restructuring

3. Severability: Provisions for maintaining validity of remaining clauses if some are found unenforceable

4. Group Company Provisions: Extension of obligations to affiliated companies and subsidiaries

5. Survival Clauses: Specification of provisions that continue after agreement termination

6. Data Protection: GDPR compliance provisions if personal data processing is involved

7. Alternative Dispute Resolution: Mediation or arbitration procedures as alternatives to court proceedings

Suggested Schedules

1. Schedule 1: Restricted Persons: Detailed list of categories of persons/entities covered by non-solicitation (e.g., key employees, clients, suppliers)

2. Schedule 2: Restricted Activities: Comprehensive list of prohibited solicitation methods and activities

3. Schedule 3: Pre-existing Relationships: List of existing business relationships exempt from the restrictions

4. Appendix A: Notice Requirements: Contact details and formal procedures for required notifications under the agreement

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