The Non-Compete Agreement Between Companies is a crucial document used in Belgian business transactions where one company needs to protect its legitimate business interests by preventing another company from engaging in competitive activities. This agreement is commonly used in business sales, joint ventures, strategic partnerships, or following M&A transactions. The document must carefully balance the protection of business interests with compliance requirements under Belgian and EU competition laws. It typically includes detailed provisions on restricted activities, geographic scope, duration, and consequences of breach, while ensuring the restrictions are reasonable and enforceable under Belgian law. Special attention must be paid to the Belgian Code of Economic Law and EU competition regulations to ensure the non-compete provisions do not unduly restrict trade or violate competition rules.
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1. Parties: Identification of the companies entering into the agreement, including their legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, including the business relationship between the parties and the legitimate business interests being protected
3. Definitions: Key terms used throughout the agreement, including specific business activities, territorial scope, and competitive activities
4. Scope of Non-Compete: Detailed description of the prohibited competitive activities, including specific business sectors and types of competition
5. Geographic Territory: Clear definition of the geographical areas where the non-compete obligations apply
6. Duration: Specific timeframe for which the non-compete obligations will remain in effect
7. Exceptions and Permitted Activities: Activities that are explicitly allowed despite the non-compete restrictions
8. Consideration: The business benefit or compensation provided in exchange for the non-compete obligations
9. Confidentiality Obligations: Provisions regarding the handling of confidential information obtained during the business relationship
10. Breach and Remedies: Consequences of violating the agreement and available legal remedies
11. Governing Law and Jurisdiction: Specification of Belgian law as governing law and designation of competent courts
1. Group Company Provisions: Provisions extending the non-compete obligations to affiliated companies and subsidiaries
2. Change of Control: Provisions addressing what happens to the agreement if either company undergoes a change in ownership or control
3. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers
4. Compliance with Competition Laws: Specific provisions ensuring compliance with EU and Belgian competition laws
5. Severability and Blue Pencil: Provisions allowing court modification of unenforceable terms while maintaining the rest of the agreement
6. Assignment Rights: Terms governing whether and how the agreement can be assigned to other entities
1. Schedule 1 - Restricted Business Activities: Detailed list of specific business activities that are prohibited under the agreement
2. Schedule 2 - Territorial Maps: Maps or detailed descriptions of the geographic territories covered by the non-compete
3. Schedule 3 - Affiliated Companies: List of group companies and affiliates bound by or excluded from the agreement
4. Schedule 4 - Existing Commitments: List of any pre-existing obligations or commitments that are carved out from the non-compete
5. Appendix A - Competition Law Compliance Guidelines: Guidelines ensuring the agreement complies with relevant competition laws
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