This Non-Compete With Independent Contractor agreement is specifically designed for use in Germany, where non-compete restrictions are heavily regulated and must meet specific legal requirements to be enforceable. The document is typically used when engaging independent contractors who will have access to sensitive business information, trade secrets, or valuable client relationships. It includes mandatory provisions for compensation (minimum 50% of previous earnings), maximum duration (2 years), and geographical scope of restrictions. The agreement balances the protection of legitimate business interests with the contractor's right to work, as required under German law. It's particularly important for high-level consultants, technical specialists, and other contractors who gain significant insight into the company's operations or intellectual property.
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1. Parties: Identification of the contracting parties - the company and the independent contractor
2. Background: Context of the agreement, nature of the contractor's services, and legitimate business interests requiring protection
3. Definitions: Key terms including 'Competitive Activity', 'Confidential Information', 'Territory', and 'Restricted Period'
4. Scope of Services: Overview of the contractor's role and services that give rise to the non-compete obligations
5. Non-Compete Obligations: Specific competitive activities prohibited during and after the contract term, including geographical and customer restrictions
6. Duration of Restrictions: Temporal scope of the non-compete obligations (maximum 2 years under German law)
7. Compensation: Mandatory compensation for the non-compete period (minimum 50% of last received compensation under German law)
8. Confidentiality: Obligations regarding confidential information and trade secrets
9. Acknowledgments: Contractor's confirmation of the reasonableness of restrictions and receipt of adequate consideration
10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages
11. General Provisions: Standard clauses including governing law, jurisdiction, severability, and entire agreement
1. Garden Leave: Optional provisions for paid non-work period during notice period - used when immediate removal from business is desired
2. Non-Solicitation: Additional restrictions on soliciting employees or customers - include when there's specific risk to customer relationships
3. Training and Special Knowledge: Details of special training or knowledge provided - include when justifying the non-compete based on transferred know-how
4. Reporting Obligations: Requirements to report new business activities during restriction period - include for high-risk situations
5. Reduction of Compensation: Provisions for reducing compensation if contractor earns income elsewhere - include when desired to offset compensation obligations
6. Early Termination of Non-Compete: Company's right to waive non-compete obligations - include when flexibility is desired
7. International Scope: Additional provisions for cross-border activities - include when contractor operates internationally
1. Schedule 1 - Restricted Territory: Detailed definition of geographical areas covered by non-compete restrictions
2. Schedule 2 - Compensation Calculation: Detailed formula and terms for calculating the non-compete compensation
3. Schedule 3 - Competitive Business Activities: Specific list of prohibited activities and competitor companies
4. Appendix A - Contractor's Current Business Interests: Declaration of contractor's existing business interests and commitments
5. Appendix B - Confidential Information Categories: Detailed categorization of protected confidential information
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