EMPLOYEE NON-COMPETE AGREEMENT

(Alaska – Comprehensive Template)

[// GUIDANCE: This template is drafted for use by Alaska employers seeking to impose post-employment non-competition restraints on employees. Alaska follows a reasonableness test rooted in common-law principles. The drafter must tailor Restricted Territory, Restricted Period, consideration, and the description of Competitive Services to the particular facts and to evolving case law.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

1. Parties; Effective Date
   This Employee Non-Compete Agreement (the “Agreement”) is entered into effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
   (a) [EMPLOYER LEGAL NAME], an [Alaska corporation/LLC/other], with its principal place of business at [ADDRESS] (“Employer”); and
   (b) [EMPLOYEE NAME], an individual residing at [ADDRESS] (“Employee”).
   Employer and Employee are each a “Party” and together the “Parties.”

2. Recitals
   A. Employer is engaged in the business of [BRIEF DESCRIPTION OF BUSINESS] (the “Business”) and has invested substantial resources in developing confidential information, trade secrets, and customer goodwill.
   B. Employee will occupy a position of trust and confidence and will be exposed to Employer’s Confidential Information (as defined below).
   C. Employer desires to protect its legitimate business interests, and Employee desires to accept or continue employment subject to the terms of this Agreement.
   D. Consideration. In exchange for (i) Employee’s initial or continued at-will employment, (ii) a one-time payment of [CONSIDERATION AMOUNT], and (iii) access to Confidential Information and other good and valuable consideration (collectively, the “Consideration”), the sufficiency of which is acknowledged, the Parties agree as follows.
   [// GUIDANCE: Alaska courts scrutinize adequacy of consideration, particularly for existing employees. Provide specific additional consideration—e.g., signing bonus, equity grant, promotion, or other material benefit.]

II. DEFINITIONS

For purposes of this Agreement, capitalized terms have the meanings set forth below and apply equally to singular and plural forms.

“Affiliate” means, with respect to any entity, any other entity that directly or indirectly controls, is controlled by, or is under common control with such entity.

“Competitive Business” means any business that, during the Restricted Period, offers or intends to offer products or services that are the same as or similar to, and competitive with, the Business or any material portion thereof.

“Competitive Services” means duties or services of the type Employee performed for Employer at any time during the [12/24] months preceding the Termination Date, or that require the use of Confidential Information.

“Confidential Information” has the meaning set forth in Section 3.2.

“Restriction Date” means the earlier of (i) the date Employee’s employment terminates for any reason (the “Termination Date”) or (ii) the date Employer first elects to enforce post-employment restrictions under Section 5.

“Restricted Period” means the period beginning on the Restriction Date and ending [NUMBER] months thereafter.
[// GUIDANCE: Alaska courts routinely uphold 12- to 18-month restrictions when supported by a legitimate interest.]

“Restricted Territory” means [GEOGRAPHIC SCOPE].
[// GUIDANCE: Territorial limits must correlate to markets or regions in which Employee had material responsibility. Multi-state or worldwide restrictions are disfavored absent strong justification.]

III. OPERATIVE PROVISIONS

3.1 Employment Status
Nothing in this Agreement alters Employee’s [at-will / contract for term] employment status unless expressly stated in a separate written agreement signed by the Parties.

3.2 Confidential Information
(a) Definition. “Confidential Information” includes, without limitation, trade secrets, business plans, customer lists, pricing strategies, technical data, and other proprietary information not generally known outside Employer.
(b) Nondisclosure. Employee shall hold Confidential Information in strict confidence both during and after employment and shall not, without Employer’s prior written consent, disclose or use Confidential Information for any purpose other than the performance of Employee’s duties.

3.3 Consideration Mechanics
The Consideration specified in Section 1.D will be paid or provided to Employee within [NUMBER] days after the Effective Date, subject to applicable payroll withholding.

IV. REPRESENTATIONS & WARRANTIES

4.1 Employee Representations
(a) Ability to Contract. Employee represents that execution and performance of this Agreement will not violate any obligation to a third party, including any restrictive covenant.
(b) Review Period. Employee acknowledges that Employee has had at least [7] calendar days to review this Agreement and consult counsel.

4.2 Employer Representations
Employer represents that it has full power and authority to enter into and perform this Agreement and that doing so is necessary for the protection of its legitimate business interests.

4.3 Survival
The representations and warranties in this Section IV survive termination of employment for the duration of the Restricted Period.

V. COVENANTS & RESTRICTIONS

5.1 Non-Competition Covenant
During the Restricted Period, Employee shall not, within the Restricted Territory, directly or indirectly:
(a) perform Competitive Services for a Competitive Business;
(b) own, manage, operate, join, control, or participate in the ownership, management, operation, or control of a Competitive Business; or
(c) consult with or advise a Competitive Business in a capacity that could reasonably be expected to benefit from Employee’s knowledge of the Business.

5.2 Non-Solicitation of Customers
During the Restricted Period, Employee shall not solicit or attempt to solicit any customer or prospective customer of Employer with whom Employee had contact, or regarding whom Employee possessed Confidential Information, during the [12] months preceding the Termination Date.

5.3 Non-Solicitation of Employees
During the Restricted Period, Employee shall not, directly or indirectly, induce or attempt to induce any employee or contractor of Employer to terminate or reduce such individual’s relationship with Employer.

5.4 Return of Property
Upon termination of employment, Employee shall promptly deliver to Employer all property and materials containing Confidential Information.

5.5 Blue-Pencil; Reformation
If any provision of this Section V is found overbroad, a court of competent jurisdiction may modify such provision to the minimum extent necessary to render it enforceable and shall enforce the provision as modified.
[// GUIDANCE: Alaska courts permit partial enforcement or reformation under the “blue-pencil” doctrine.]

VI. DEFAULT & REMEDIES

6.1 Events of Default
A breach or threatened breach by Employee of any covenant in Section V constitutes an immediate event of default (“Default”).

6.2 Notice; Cure
Upon Default, Employer may deliver written notice specifying the nature of the breach. If the breach is capable of cure, Employee shall have [5] calendar days to cure; provided, however, that Employer need not provide an opportunity to cure in the event of willful misconduct or disclosure of trade secrets.

6.3 Primary Remedy – Injunctive Relief
Employee acknowledges that a breach will cause irreparable harm to Employer for which monetary damages are inadequate. Accordingly, Employer is entitled to temporary, preliminary, and permanent injunctive relief, without the necessity of posting bond, in any court of competent jurisdiction.

6.4 Additional Remedies
(a) Accounting for Profits. Employer may require Employee to account for and disgorge all profits realized as a result of a breach.
(b) Tolling. The Restricted Period shall be tolled during any period of non-compliance.
(c) Attorneys’ Fees. Employee shall pay Employer’s reasonable attorneys’ fees and costs incurred in enforcing this Agreement.

VII. RISK ALLOCATION

7.1 Indemnification by Employee
Employee shall indemnify, defend, and hold harmless Employer and its Affiliates from and against any and all losses, damages, liabilities, and expenses (including reasonable attorneys’ fees) arising from Employee’s breach of this Agreement.

7.2 Limitation of Liability
The Parties acknowledge that no contractual limitation of liability applies to Employer’s remedies for Employee’s breach.

7.3 Insurance
[OPTIONAL] Employee shall maintain professional liability insurance in an amount not less than [$____] naming Employer as additional insured.
[// GUIDANCE: Generally not required, but available where Employee is a professional rendering licensed services.]

7.4 Force Majeure
Neither Party shall be liable for failure to perform due to events beyond its reasonable control; provided, however, that this provision does not excuse payment or compliance with restrictive covenants.

VIII. DISPUTE RESOLUTION

8.1 Governing Law
This Agreement and all disputes arising under it are governed by the laws of the State of Alaska, without regard to conflict-of-law principles.

8.2 Forum Selection
The Parties submit to the exclusive jurisdiction of the state courts located in [COUNTY], Alaska for any action relating to this Agreement, except as provided in Section 8.4.

8.3 Jury Trial Waiver
[OPTIONAL – delete if not desired] EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF OR RELATING TO THIS AGREEMENT.

8.4 Arbitration
[OPTIONAL – select ONE]
(a) If elected by Employer in its sole discretion, any dispute (other than a request for injunctive relief) shall be finally resolved by binding arbitration administered by [AAA/JAMS] in [CITY], Alaska under its Employment Arbitration Rules.
(b) If no election is made, all disputes shall be resolved in state court per Section 8.2.

8.5 Injunctive Relief Notwithstanding Arbitration
Employer may seek injunctive relief in court notwithstanding the existence of an arbitration provision.

IX. GENERAL PROVISIONS

9.1 Amendments; Waivers
No amendment or waiver of this Agreement is effective unless in a written instrument signed by both Parties. A waiver on one occasion is not a waiver on any subsequent occasion.

9.2 Assignment
(a) Employer may assign this Agreement to any successor in interest.
(b) Employee may not assign any rights or delegate any duties without Employer’s prior written consent.

9.3 Successors & Assigns
This Agreement binds and inures to the benefit of the Parties and their respective successors, assigns, heirs, and legal representatives.

9.4 Severability
If any provision is held invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to render it enforceable.

9.5 Integration; No Reliance
This Agreement, together with any confidentiality or proprietary information agreement between the Parties, constitutes the entire agreement with respect to the subject matter and supersedes all prior negotiations and understandings. The Parties acknowledge they have not relied on any representation not set forth herein.

9.6 Counterparts; Electronic Signatures
This Agreement may be executed in counterparts, each of which is deemed an original, and all of which constitute one instrument. Signatures transmitted by electronic means (e.g., PDF, DocuSign) are binding.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Employee Non-Compete Agreement as of the Effective Date.

[OPTIONAL NOTARY ACKNOWLEDGMENT – insert if employer practice or AK statute requires notarization for recordability or evidentiary purposes.]

[// GUIDANCE:
1. Tailor Restricted Territory, Restricted Period, and Competitive Services to factual circumstances—overbreadth is the chief reason Alaska courts refuse enforcement.
2. Confirm that the Consideration complies with Alaska’s adequacy requirement for mid-employment agreements.
3. Re-evaluate enforceability whenever job duties, geography, or Alaska law changes.
4. Preserve signed originals and all drafts in personnel file for evidentiary support.]