DIY Legal Forms

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Shareholders Non Compete Agreement

Shareholders of Seller Not to Compete. Each of the Shareholders will deliver to the Purchaser an agreement that provides that the Shareholders for a period of [number] years from the date of the closing will not in [geographical area], directly or indirectly, (1) engage in the business of ---------- (the Restricted Activity), that being the business of the Corporation; (2) assist any person in conducting the Restricted Activity, provided, however, that the agreement will not restrict the Sellers' combined ownership of up to ---------- percent (----------%) of the securities of a person who engages in the Restricted Activity; and (3) for the purpose of conducting the Restricted Activity, interfere with business relationships (whether formed before or after the closing) between Purchaser and customers of or suppliers to the Corporation. The agreements will provide that if there is a threatened breach thereof, the Purchaser shall be entitled to seek injunctive relief restraining the breaching party from engaging in the Restricted Activity. The agreements will provide, however, that nothing therein contained will be construed to prevent the Purchaser from pursuing all other remedies available to it in law or in equity. The value of each of the noncompete agreements is ---------- dollars ($----------), which shall be included in the sales price.