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The Standard Non-Compete Agreement serves as a crucial tool for businesses operating in the United States to protect their legitimate interests, including trade secrets, customer relationships, and competitive advantage. This document becomes particularly relevant when employees or contractors have access to sensitive information or significant customer relationships. While enforcement varies by state jurisdiction, with some states imposing strict limitations or prohibitions, the agreement typically defines specific temporal, geographical, and activity-based restrictions. The document must carefully balance the employer's need for protection against public policy considerations and state-specific requirements for enforceability. Recent developments, including the FTC's proposed rule to ban non-competes and various state law changes, make it essential to regularly review and update these agreements to ensure compliance with current legal standards.

1. Parties: Identifies all parties to the agreement with full legal names and addresses

2. Background/Recitals: Explains the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement including 'Restricted Business', 'Territory', and 'Restricted Period'

4. Scope of Restrictions: Details prohibited activities, geographic limitations, and time period of the non-compete restrictions

5. Consideration: Specifies what the restricted party receives in exchange for the non-compete restrictions

6. Term and Termination: Duration of the agreement and conditions for termination

7. Governing Law: Specifies jurisdiction and applicable law for enforcement of the agreement