They are commonly referred to as
Non-Compete Agreements and
Non-Piracy Contracts.
I have always found if you hired people, paid them well, treated them well and oh yeah did I mention pay them well??? You'll do fine.
Competition breeds activity and improvements within your own organization. I have been in three different offices in almost 15 years. Was sued once on a Non Compete contract for a tad over $180,000.00. The suit was dropped.
By far the best way is to pay them well so they don't leave.
(Have I mentioned that already???)
Another way is to use what we refer to as the
"Golden Handcuffs"
Example: If I wanted to keep you here with me. I'd tell you,
"Sam. I like you. No I really like you and I want you to stay with me. Here's what I want to do just for you and not the others...
"You're a good salesman and I want to reward you for it. I also want you to be here with us for a long time. You could make the both of us a lot of money...
"So if you stay here at Sam Industries for 10 years I'll pay you an additional $50,000.00 at the end of that time. If you decide to remain for 15 years, I'll pay you $75,000 cash...
"Should you die prior to the end of our agreement, I will guarantee to you, that I will pay your family $100,000.00 at anytime during our agreement. This is on top af and in additon to your regular benefits package... Your family will be provided for.
"There will also be cash there for you if you become disabled and can't work!
And oh yeah... If you leave us here at Sam Industries you'll lose all those benefits and promises... Make sense?
"I will put this in contract and sign it. You stay here with me and I wil see to it you and your family are taken care of, okay?"
Now what will it take to get him to leave you??? It would have to be a lot to offset the benefit package you just laid out to him, right???
It is funded with a non-qualified contractual fringe benefit arrangement. The plus side is, if he ever does leave... The cash is yours to keep. If he leaves and passes away, your business is the beneficiary of the $100,000.00 payment. Again yours to keep.
Other than the above benefit program, a
Non-Compete Agreement or
Non-Piracy Contract would at elast give you some legal recourse if he leaves and steals clients or trade secrets. And oh yeah,
DID I MENTION TO PAY THEM WELL??? 
Success and Regards... Mike
http://www.CrashCourseMarketing.com
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