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5 Year Non Compete Agreement
"Need a 5 Year Non Compete Agreement for our outgoing Chief Technology Officer who is leaving on March 1, 2025, with focus on protecting our AI technology development activities across Southeast Asia and preventing them from joining our three main competitors in Indonesia."
1. Parties: Identification of the employer and employee/former employee, including full legal names and addresses
2. Background: Context of the agreement, including the employee's former position and access to confidential information
3. Definitions: Key terms including 'Competitive Business', 'Restricted Territory', 'Confidential Information', and 'Restricted Period'
4. Non-Compete Obligations: Core restrictions on competitive activities, including specific prohibited activities and industry sectors
5. Geographic Scope: Definition of the territorial limits of the non-compete restrictions
6. Duration: Specification of the 5-year term and any circumstances that might extend or reduce this period
7. Consideration: Details of compensation provided in exchange for the non-compete obligations
8. Acknowledgments: Employee's confirmation of the reasonableness of restrictions and receipt of consideration
9. Exceptions: Permitted activities and circumstances where restrictions don't apply
10. Remedies: Available legal remedies in case of breach, including injunctive relief and damages
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of courts
12. Execution: Signature blocks and execution requirements
1. Non-Solicitation Obligations: Additional restrictions on soliciting customers or employees, used when the employee had significant client contact or management responsibilities
2. Garden Leave: Provisions for paid leave during initial restriction period, typically used for senior executives
3. Severability: Provisions for partial enforcement if some restrictions are found invalid, important in jurisdictions where enforceability is uncertain
4. Return of Property: Requirements for returning company property and documents, included when the employee had access to physical or digital assets
5. Monitoring and Reporting: Requirements for the restricted party to report their activities, used in high-risk situations or for senior employees
1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by the restrictions
2. Schedule 2 - Restricted Activities: Comprehensive list of prohibited business activities and competitors
3. Schedule 3 - Consideration Payment Schedule: Details of payment amounts, dates, and methods for the non-compete consideration
4. Appendix A - Confidential Information: List of types of confidential information the employee had access to, supporting the need for restrictions
5. Appendix B - Former Position Details: Description of employee's former role and responsibilities, justifying the scope of restrictions
Authors
Technology
Manufacturing
Financial Services
Pharmaceuticals
Telecommunications
Professional Services
Energy
Consumer Goods
Healthcare
Research and Development
E-commerce
Mining and Resources
Legal
Executive Leadership
Research & Development
Sales
Product Development
Information Technology
Business Development
Operations
Finance
Human Resources
Strategic Planning
Client Services
Chief Executive Officer
Chief Technology Officer
Senior Software Engineer
Research Director
Head of Sales
Chief Financial Officer
Product Development Manager
Senior Account Manager
Technical Lead
Regional Director
Business Development Manager
Chief Operations Officer
Head of Research
Senior Business Analyst
Managing Director
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