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Non Compete Agreement After Acquisition

Non Compete Agreement After Acquisition Template for Netherlands

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Key Requirements PROMPT example:

Non Compete Agreement After Acquisition

"I need a Non Compete Agreement After Acquisition under Dutch law for our upcoming tech company acquisition closing March 2025, covering restrictions in Benelux and Germany, with special focus on protecting our intellectual property and preventing the founders from starting competing software businesses for 3 years."

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Document background
A Non-Compete Agreement After Acquisition is essential in Dutch M&A transactions to protect the purchaser's investment by preventing sellers from competing with the acquired business. This document is typically executed alongside or shortly after the main acquisition agreement, particularly when acquiring knowledge-intensive businesses or those with significant customer relationships. The agreement must comply with Dutch competition law and civil code requirements, including reasonable limitations on duration (typically 2-3 years), geographical scope, and restricted activities. It contains specific provisions for non-solicitation of customers and employees, confidentiality obligations, and enforcement mechanisms. The document is crucial for transactions where the sellers' knowledge, relationships, or reputation are significant value drivers of the acquired business.
Suggested Sections

1. Parties: Identification of the parties: typically the purchaser/acquiring company and the seller(s)/previous owner(s)

2. Background: Context of the agreement, including reference to the acquisition transaction and the legitimate business interests being protected

3. Definitions: Key terms including 'Restricted Business', 'Territory', 'Restricted Period', 'Confidential Information', and other relevant definitions

4. Non-Compete Obligations: Core restrictions preventing the seller from competing with the acquired business, including specific prohibited activities

5. Duration and Territory: Specific timeframe and geographical scope of the non-compete restrictions

6. Non-Solicitation: Restrictions on soliciting employees, customers, suppliers, or other business relationships

7. Confidentiality: Obligations regarding the protection and non-use of confidential information

8. Exceptions and Permitted Activities: Specific carve-outs and activities that are permitted despite the general restrictions

9. Consideration: Confirmation that the consideration for these restrictions was included in the acquisition price

10. Remedies and Enforcement: Consequences of breach, including injunctive relief and liquidated damages

11. General Provisions: Standard clauses including governing law, jurisdiction, severability, and entire agreement

Optional Sections

1. Intellectual Property Protection: Additional provisions specifically protecting IP rights, used when the acquired business has significant IP assets

2. Employee Restrictions: Specific provisions regarding key employees, used when retention of key staff is crucial

3. International Provisions: Additional clauses for cross-border enforcement, used when business operates in multiple jurisdictions

4. Assignment and Succession: Provisions regarding transfer of obligations, used when future corporate restructuring is anticipated

5. Tax Implications: Specific provisions regarding tax treatment of non-compete payments, used when separate consideration is allocated to non-compete

6. Monitoring and Reporting: Provisions for monitoring compliance, used in cases of high-risk or complex business situations

Suggested Schedules

1. Schedule 1 - Restricted Business Description: Detailed description of the business activities covered by the non-compete

2. Schedule 2 - Territory Definition: Detailed maps or lists of restricted geographical areas

3. Schedule 3 - Key Customers and Suppliers: List of specific relationships protected by non-solicitation provisions

4. Schedule 4 - Reference to Acquisition Agreement: Relevant excerpts or references from the main acquisition agreement

5. Schedule 5 - Permitted Activities: Detailed list of specifically permitted activities or existing interests

6. Appendix A - Compliance Certificate: Template for periodic compliance certification if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






























Clauses

























Relevant Industries

Technology and Software

Professional Services

Manufacturing

Healthcare and Life Sciences

Retail and Consumer Goods

Financial Services

Media and Entertainment

Consulting Services

Industrial Services

Energy and Utilities

Relevant Teams

Legal

Corporate Development

Mergers & Acquisitions

Executive Leadership

Compliance

Finance

Risk Management

Business Development

Human Resources

Strategy

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

M&A Director

Corporate Development Manager

Business Development Director

Legal Counsel

Compliance Officer

Chief Financial Officer

Integration Manager

Company Secretary

Risk Manager

Commercial Director

Managing Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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