The Non-Compete Non-Solicitation Agreement is a crucial document for businesses operating in Hong Kong seeking to protect their legitimate interests, confidential information, and customer relationships. This agreement is commonly used when onboarding senior executives, key employees, or establishing business partnerships where parties gain access to sensitive business information or develop significant customer relationships. The document must comply with Hong Kong's common law framework, which requires such restrictions to be reasonable in scope, duration, and geographical extent. It typically includes detailed provisions on prohibited activities, temporal and geographical limitations, and enforcement mechanisms, while balancing the protection of business interests with an individual's right to work and public policy considerations.
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1. Parties: Identification of the parties entering into the agreement, typically the employer/company and the employee/contractor
2. Background: Context of the agreement, including the relationship between the parties and the legitimate business interests being protected
3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Restricted Business', 'Restricted Period', 'Territory', and 'Restricted Customers'
4. Non-Compete Obligations: Specific restrictions on competing activities, including scope, duration, and geographical limitations
5. Non-Solicitation of Customers: Restrictions on approaching or dealing with customers or potential customers of the protected business
6. Non-Solicitation of Employees: Restrictions on soliciting or hiring employees of the protected business
7. Confidentiality Obligations: Obligations regarding the protection and non-disclosure of confidential information
8. Duration and Territory: Specific timeframes and geographical areas where the restrictions apply
9. Acknowledgments: Statements acknowledging the reasonableness of restrictions and receipt of consideration
10. Remedies: Available remedies in case of breach, including injunctive relief and damages
11. General Provisions: Standard contractual provisions including governing law, severability, and entire agreement
1. Garden Leave: Provisions for paid leave during notice period to protect business interests, typically included for senior employees
2. Post-Termination Assistance: Requirements for the restricted party to assist with transition or handover, typically for key personnel
3. Consideration: Specific section detailing additional consideration provided for the restrictions, required when agreement is signed after employment starts
4. Independent Legal Advice: Acknowledgment of receiving independent legal advice, recommended for enhanced enforceability
5. Survival of Obligations: Explicit provisions about which obligations survive termination of employment/relationship, recommended for complex relationships
1. Schedule 1 - Restricted Territory: Detailed description of geographical areas where restrictions apply, including maps or specific jurisdictions
2. Schedule 2 - Restricted Customers: List or categories of customers covered by non-solicitation provisions, if specific customers are being restricted
3. Schedule 3 - Restricted Business Activities: Detailed description of specific business activities covered by the non-compete provisions
4. Schedule 4 - Consideration Details: Details of any specific consideration provided for the restrictions, if applicable
5. Appendix A - Confidential Information Categories: Detailed categorization of types of confidential information covered by the agreement
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