Non-Compete Agreement
Definition:
An agreement or undertaking whereby a key employee is bound not to engage in certain activities that are competitive with those of his/her employer for a specified period of time after he/she leaves that employer. In the United States, courts are generally hostile toward Non-Compete Agreements, particularly where the subject person is not a senior executive or someone who has entered into the agreement in connection with the sale of their business benefitting from the agreement.
See also Non-Solicitation Agreement.