The Non-Compete Agreement Between Companies is a crucial legal instrument used in Austrian business transactions where companies need to protect their legitimate business interests when engaging in close business relationships, such as joint ventures, mergers, acquisitions, or strategic partnerships. This document, governed by Austrian law and compliant with EU regulations, becomes particularly important when companies share sensitive information, technology, or market knowledge. It defines the scope of restricted activities, geographical boundaries, and duration of non-compete obligations, while ensuring compliance with Austrian competition law (Kartellgesetz) and related regulations. The agreement typically follows instances where companies need to protect their market position, intellectual property, or business secrets from being used competitively against them by their business partners.
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1. Parties: Identification of the contracting companies, including full 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 'Competitive Activity', 'Confidential Information', 'Territory', and 'Restricted Period'
4. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas covered by the restriction
5. Duration: Specific timeframe for the non-compete obligations, ensuring compliance with reasonable duration requirements under Austrian law
6. Geographic Limitations: Clear definition of the territorial scope where the non-compete obligations apply
7. Consideration: The mutual benefits or compensation provided in exchange for the non-compete obligations
8. Exceptions and Permitted Activities: Activities explicitly allowed despite the general non-compete provisions
9. Confidentiality Obligations: Provisions regarding the handling and protection of confidential information
10. Breach and Remedies: Consequences of violation and available legal remedies, including any agreed penalties (Konventionalstrafe)
11. Governing Law and Jurisdiction: Specification of Austrian law as governing law and designation of competent courts
1. Pre-existing Obligations: Section addressing any existing non-compete or similar obligations that may affect this agreement
2. Group Company Provisions: Extended provisions covering affiliated companies and subsidiaries, used when parties are part of larger corporate groups
3. Post-Term Obligations: Specific obligations that continue after the termination of the main business relationship
4. Compliance with Competition Laws: Specific provisions ensuring compliance with EU and Austrian competition regulations, particularly relevant for larger companies or those with significant market share
5. Alternative Dispute Resolution: Provisions for mediation or arbitration before court proceedings, recommended for international business relationships
6. Assignment and Transfer: Provisions regarding the ability to transfer rights and obligations under the agreement, particularly relevant in case of corporate restructuring
7. Severability and Reformation: Provisions allowing court modification of unenforceable terms, particularly important given strict Austrian enforcement of non-compete provisions
1. Schedule 1: Restricted Activities: Detailed list of specific activities, products, or services covered by the non-compete obligation
2. Schedule 2: Territory Definition: Detailed maps or lists of countries/regions where the non-compete applies
3. Schedule 3: Affiliated Companies: List of group companies or affiliates bound by or benefiting from the agreement
4. Schedule 4: Existing Contracts and Relationships: List of pre-existing business relationships or contracts explicitly excluded from the non-compete
5. Appendix A: Market Analysis: Supporting documentation justifying the scope of restrictions based on market conditions
6. Appendix B: Consideration Details: Detailed breakdown of any financial or other consideration provided in exchange for the non-compete obligations
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