Free Tennessee Non-Disclosure Agreement

Sample Tennessee Non-Disclosure Agreement


THIS NON-DISCLOSURE AGREEMENT (the "Agreement") dated this ____________________, _______


____________________ of ________________________________________________________________________________

(the "Employer")


- AND -

____________________ of ________________________________________________________________________________

(the "Employee")



  1. The Employee is currently or may be employed as an employee with the Employer for the position of: ____________________. In addition to this responsibility or position (the "Employment"), this Agreement also covers any position or responsibility now or later held with the Employer.
  2. The Employee will receive from the Employer, or develop on the behalf of the Employer, Confidential Information as a result of the Employment (the 'Permitted Purpose').

IN CONSIDERATION OF and as a condition of the Employer employing the Employee and the Employer providing the Confidential Information to the Employee in addition to other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Agreement agree as follows:

    Confidential Information

  1. All written and oral information and materials disclosed or provided by the Employer to the Employee under this Agreement constitute Confidential Information regardless of whether such information was provided before or after the date of this Agreement or how it was provided to the Employee.
  2. The Employee acknowledges that in any position the Employee may hold, in and as a result of the Employee's Employment by the Employer, the Employee will, or may, be making use of, acquiring or adding to information about certain matters and things which are confidential to the Employer and which information is the exclusive property of the Employer.
  3. 'Confidential Information' means all data and information relating to the business and management of the Employer, including but not limited to, the following:
    1. Confidential Information will also include any information that has been disclosed by a third party to the Employer and is protected by a non-disclosure agreement entered into between the third party and the Employer.
  4. Confidential Information will not include the following information:
    1. Information that is generally known in the industry of the Employer;
    2. Information that is now or subsequently becomes generally available to the public through no wrongful act of the Employee;
    3. Information rightly in the possession of the Employee prior to receiving the Confidential Information from the Employer;
    4. Information that is independently created by the Employee without direct or indirect use of the Confidential Information; or
    5. Information that the Employee rightfully obtains from a third party who has the right to transfer or disclose it.
  5. Confidential Obligations

  6. Except as otherwise provided in this Agreement, the Employee must keep the Confidential Information confidential.
  7. Except as otherwise provided in this Agreement, the Confidential Information will remain the exclusive property of the Employer and will only be used by the Employee for the Permitted Purpose. The Employee will not use the Confidential Information for any purpose that might be directly or indirectly detrimental to the Employer or any associated affiliates or subsidiaries.
  8. The obligations to ensure and protect the confidentiality of the Confidential Information imposed on the Employee in this Agreement and any obligations to provide notice under this Agreement will survive the expiration or termination, as the case may be, of this Agreement and will be continuous from the date of this Agreement until ____________________, _______, except in the case of any Confidential Information which is a trade secret in which case those obligations will last indefinitely.
  9. The Employee may disclose any of the Confidential Information:
    1. to such employees, agents, representatives and advisors of the Employee that have a need to know for the Permitted Purpose provided that:
      1. the Employee has informed such personnel of the confidential nature of the Confidential Information;
      2. such personnel agree to be legally bound to the same burdens of confidentiality and non-use as the Employee;
      3. the Employee agrees to take all necessary steps to ensure that the terms of this Agreement are not violated by such personnel; and
      4. the Employee agrees to be responsible for and indemnify the Employer for any breach of this Agreement by their personnel.
    2. to a third party where the Employer has consented in writing to such disclosure; and
    3. to the extent required by law or by the request or requirement of any judicial, legislative, administrative or other governmental body.
  10. Avoiding Conflict of Opportunities

  11. It is understood and agreed that any business opportunity relating to or similar to the Employer's current or anticipated business opportunities coming to the attention of the Employee during the Employee's Employment is an opportunity belonging to the Employer. Accordingly, the Employee will advise the Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer.
  12. Without the written consent of the Employer, the Employee further agrees not to:
    1. solely or jointly with others undertake or join any planning for or organization of any business activity competitive with the current or anticipated business activities of the Employer; and
    2. directly or indirectly, engage or participate in any other business activities which the Employer, in their reasonable discretion, determines to be in conflict with the best interests of the Employer.
  13. Non-Solicitation

  14. Any attempt on the part of the Employee to induce others to leave the Employer's employ, or any effort by the Employee to interfere with the Employer's relationship with their other employees and contractors would be harmful and damaging to the Employer. The Employee agrees that from the date of this Agreement until ____________________, _______, the Employee will not in any way, directly or indirectly:
    1. induce or attempt to induce any employee or contractor of the Employer to quit their employment or retainer with the Employer;
    2. otherwise interfere with or disrupt the Employer's relationship with their employees and contractors;
    3. discuss employment opportunities or provide information about competitive employment to any of the Employer's employees or contractors; or
    4. solicit, entice, or hire away any employee or contractor of the Employer.

    This obligation will be limited in scope to those persons that were employees or contractors of the Employer at the same time that the Employee was employed by the Employer.

  15. Non-Competition

  16. Other than through employment with a bona-fide independent party, or with the express written consent of the Employer, which will not be unreasonably withheld, the Employee will not, from the date of this Agreement until ____________________, _______, be directly or indirectly involved with a business which is in direct competition with the particular business line of the Employer that the Employee was working during any time in the last year of Employment with the Employer.
  17. From the date of this Agreement until ____________________, _______, the Employee will not divert or attempt to divert from the Employer any business the Employer had enjoyed, solicited, or attempted to solicit, from their customers, prior to termination or expiration, as the case may be, of the Employment.
  18. Ownership and Title

  19. The Employee acknowledges and agrees that all rights, title and interest in any Confidential Information will remain the exclusive property of the Employer. Accordingly, the Employee specifically agrees and acknowledges that the Employee will have no interest in the Confidential Information, including, without limitation, no interest in know-how, copyright, trademarks or trade names, notwithstanding the fact that the Employee may have created or contributed to the creation of that Confidential Information.
  20. The Employee does hereby waive any moral rights that the Employee may have with respect to the Confidential Information.
  21. The Confidential Information will not include anything developed or produced by the Employee during the term of this Agreement, including but not limited to intellectual property, process, design, development, creation, research, invention, know-how, trade name, trademarks or copyright that:
    1. was developed without the use of any equipment, supplies, facility or Confidential Information of the Employer;
    2. was developed entirely on the Employee's own time;
    3. does not relate to the actual business or reasonably anticipated business of the Employer;
    4. does not relate to the actual or demonstrably anticipated processes, research or development of the Employer; and
    5. does not result from any work performed by the Employee for the Employer.
  22. The Employee agrees to immediately disclose to the Employer all Confidential Information developed in whole or in part by the Employee during the term of the Employment and to assign to the Employer any right, title or interest the Employee may have in the Confidential Information. The Employee agrees to execute any instruments and to do all other things reasonably requested by the Employer (both during and after the term of the Employment) in order to vest more fully in the Employer all ownership rights in those items transferred by the Employee to the Employer.
  23. Remedies

  24. The Employee agrees and acknowledges that the Confidential Information is of a proprietary and confidential nature and that any failure to maintain the confidentiality of the Confidential Information in breach of this Agreement cannot be reasonably or adequately compensated for in money damages and would cause irreparable injury to the Employer. Accordingly, the Employee agrees that the Employer is entitled to, in addition to all other rights and remedies available to them at law or in equity, an injunction restraining the Employee and any agents of the Employee, from directly or indirectly committing or engaging in any act restricted by this Agreement in relation to the Confidential Information.
  25. Return of Confidential Information

  26. The Employee agrees that, upon request of the Employer, or in the event that the Employee ceases to require use of the Confidential Information, or upon expiration or termination of this Agreement, or the expiration or termination of the Employment, the Employee will turn over to the Employer all documents, disks or other computer media, or other material in the possession or control of the Employee that:
    1. may contain or be derived from ideas, concepts, creations, or trade secrets and other proprietary and Confidential Information as defined in this Agreement; or
    2. is connected with or derived from the Employee's services to the Employer.
  27. Notices

  28. In the event that the Employee is required in a civil, criminal or regulatory proceeding to disclose any part of the Confidential Information, the Employee will give to the Employer prompt written notice of such request so the Employer may seek an appropriate remedy or alternatively to waive the Employee's compliance with the provisions of this Agreement in regards to the request.
  29. If the Employee loses or fails to maintain the confidentiality of any of the Confidential Information in breach of this Agreement, the Employee will immediately notify the Employer and take all reasonable steps necessary to retrieve the lost or improperly disclosed Confidential Information.
  30. Any notices or delivery required in this Agreement will be deemed completed when hand-delivered, delivered by agent, or seven (7) days after being placed in the post, postage prepaid, to the parties at the addresses contained in this Agreement or as the parties may later designate in writing.
  31. The addresses for any notice to be delivered to any of the parties to this Agreement are as follows:
    1. ____________________
    2. ____________________
  32. Representations

  33. In providing the Confidential Information, the Employer makes no representations, either expressly or impliedly as to its adequacy, sufficiency, completeness, correctness or its lack of defect of any kind, including any patent or trademark infringement that may result from the use of such information.
  34. Termination

  35. This Agreement will automatically terminate on the date that the Employee's Employment with the Employer terminates or expires, as the case may be. Except as otherwise provided in this Agreement, all rights and obligations under this Agreement will terminate at that time.
  36. Assignment

  37. Except where a party has changed its corporate name or merged with another corporation, this Agreement may not be assigned or otherwise transferred by either party in whole or part without the prior written consent of the other party to this Agreement.
  38. Amendments

  39. This Agreement may only be amended or modified by a written instrument executed by both the Employer and the Employee.
  40. Governing Law

  41. This Agreement will be construed in accordance with and governed by the laws of the State of Tennessee.
  42. General Provisions

  43. Time is of the essence in this Agreement.
  44. This Agreement may be executed in counterpart.
  45. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  46. The clauses, paragraphs, and subparagraphs contained in this Agreement are intended to be read and construed independently of each other. If any part of this Agreement is held to be invalid, this invalidity will not affect the operation of any other part of this Agreement.
  47. The Employee is liable for all costs, expenses and expenditures including, and without limitation, the complete legal costs incurred by the Employer in enforcing this Agreement as a result of any default of this Agreement by the Employee.
  48. The Employer and the Employee acknowledge that this Agreement is reasonable, valid and enforceable. However, if a court of competent jurisdiction finds any of the provisions of this Agreement to be too broad to be enforceable, it is the intention of the Employer and the Employee that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable, bearing in mind that it is the intention of the Employee to give the Employer the broadest possible protection to maintain the confidentiality of the Confidential Information.
  49. No failure or delay by the Employer in exercising any power, right or privilege provided in this Agreement will operate as a waiver, nor will any single or partial exercise of such rights, powers or privileges preclude any further exercise of them or the exercise of any other right, power or privilege provided in this Agreement.
  50. This Agreement will inure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns, as the case may be, of the Employer and the Employee.
  51. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.

IN WITNESS WHEREOF ____________________ and ____________________ have duly affixed their signatures under hand and seal on this ____________________, _______.





Witness Name: ____________________________







Witness Name: ____________________________



Essentials of a Non-Disclosure Agreement in Tennessee

If you are researching on ways to make your service delivery better and you just came up with never-heard-of ideas or processes that promise to propel you to greater heights of success, one that gives you a remarkable competitive edge, then you need to protect that secret.

Contrary to common beliefs, you need to start protecting that information not after starting to use the new devices or information from the research, but at the inception of the idea in your mind. You need to make sure that anyone who learns about your research and your new invention only acquires that knowledge after they have signed an NDA or a confidentiality agreement.

Having seen and read about inventors who lost their patent rights because the other party used or disclosed their invention, it is paramount that you take all the necessary steps to ensure the protection of your proprietary information. The proprietary information represents the kind of information or idea that you have pioneered, often a unique invention.

On the other hand, you have trade secrets - the information that gives you a competitive and economic advantage (actual or potential) because the information is unknown to the public. The information could be available in different forms - a device, compilation, process, program, formula, pattern, a method, or a technique. The only way for you to ensure that you maintain your competitiveness is by protecting that information. You should know that the law will only accept the protection of legitimate trade secrets, as well as trade secrets and confidential business interests acquired legally.

But, do you know what confidentiality or a non-disclosure agreement (NDA) is? A non-disclosure refers to the legally binding document created between two or more parties. By signing the document, the recipient of the confidential information promises to protect the information from the public domain, media or third parties, and he or she also promises not to use the information for personal benefit unless they receive the go-ahead from the party that disclosed the information.

Employers often create NDAs, startups, inventors, and entrepreneurs and the most common recipients of the information include investors, employees, acquiring companies, and venture capitalists. To get started, you (disclosing party) must first download a free Tennessee non-disclosure agreement form online.

Once you have the NDA form, you can go ahead to specify your needs. It's important to have this document when planning to hire new employees who will come in contact with or need knowledge of the confidential information or when you need to be sure that the potential investor will not run off into the sunset when they learn about your million-dollar trade secret. It, therefore, means that the recipient must sign the NDA before you get into more details of your business.

Types of NDAs

There are two main types of NDAs/ confidentiality agreement in Tennessee - the unilateral and the bilateral NDAs.

The unilateral NDA features one disclosing party and one receiving a party, and in some cases, it is referred to as a one-way NDA. It works well in employment setups, or when engaging investors.

The bilateral NDA, on the other hand, is also called a mutual NDA. Both parties have to disclose their trade secrets while promising not to divulge the trade secrets of the other. Mutual NDAs are commonly used in mergers or joint ventures. Note that you could have other types of NDAs depending on your needs.

What must you have within the scope of your NDA?

The naming of the parties: your free non-disclosure agreement in Tennessee must identify the disclosing party and the receiving party. The disclosing party refers to the company or individual who has rights to the valuable information they wish to share with the receiving person/ company (the recipient). These parties enter into a contractual relationship when they sign the NDA. Keep in mind that the document is only legally binding after it's signed.

A concise description of the confidential information: You should know by now that you cannot protect your trade secrets by using a blanket statement like 'confidential information.' You have to name be specific about the nature of the confidential information.

While confidential information represents valuable and sensitive information that must be protected and kept away from the public domain, you need to indicate the nature of the information protected. The most common forms of confidential information include marketing strategies, accounting/ financial information, a computer software, customer lists, or pricing models, classified government information, business strategies, inventions, hardware configurations, unpublished patent applications, samples, prototypes, drawings, verbal/ written representations, etc.

Exclusions: this is a clause that names the categories of information not considered confidential. Non-confidential information includes information that is publicly available, information that could be shared once the recipient has the permission to disclose from the disclosing party, information received from third parties, or information obtained/ developed independently by the recipient. Exclusions will also include information that the recipient needs to share because they have received an order compelling them to reveal the information.

Obligations of the receiving party: the recipient of the trade secrets has two main roles - they should not disclose the trade secrets protected by the NDA, and they should not use the information for personal reasons or benefits without the permission of the disclosing party.

Duration: this part of the NDA spells out when the protection of the trade secrets begins and how long the protection is expected to last. Often, the contract terminates when the agreement expires, after completion of a transaction, or after the elapse of a specific amount of time.

Applicable jurisdiction: It should be noted in the NDA where the protection of the NDA applies. In some cases, the trade secrets protected in one state are not protected, and the secrets could be revealed in a different state. The issue of jurisdiction matters a lot when dealing with non-compete agreements.

Note that both parties must sign the document for its legality.


Non-competes and the employer contracts restrict the mobility of employees after they leave a company. The restrictions are time and geographically limited, and they must be reasonable. This means that you cannot effectuate a non-compete that restricts an employee from working with competitors in the whole country. For enforcement, there should be a balance between the protection of the company's legitimate business interests and the employee's ability to find work in a field they are well trained in.

  • The state has set strict regulations on non-competes, and they are only enforceable if the following conditions are met:

    • If it prevents solicitation of an employer's/ company's existing customers.

    • If it protects the trade secrets or confidential information of the company

    • If the agreement protects the employer's/ company's substantial investment in the employee's training or enhanced skills and experience.

    • There should also be sufficient consideration. The acceptable consideration could be an offer of initial or continued employment, or any other benefits.

    • The non-compete must be reasonable in its time and geographical scope of restriction.

If your business is headquartered in Nashville, Knoxville, Memphis, Gatlinburg, Chattanooga or any other city in Tennessee, you could create NDAs using our free non-disclosure agreement forms accessible online easily.


TN Non-Disclosure Agreement

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