The Confidentiality and Restrictive Covenant Agreement serves as a critical legal instrument for businesses operating in Indonesia to safeguard their proprietary information and maintain competitive advantage. This document is typically used when engaging employees, contractors, business partners, or other parties who will have access to sensitive business information. It combines comprehensive confidentiality provisions with specific restrictive covenants that comply with Indonesian legal requirements, particularly Law No. 13 of 2003 on Manpower and Law No. 30 of 2000 on Trade Secrets. The agreement is essential for protecting trade secrets, customer relationships, employee relationships, and other business interests, while ensuring enforceability under Indonesian jurisdiction. It is commonly implemented during hiring processes, business partnerships, or when granting access to confidential information.
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1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses
2. Background: Context of the agreement, relationship between the parties, and purpose of entering into the confidentiality and restrictive covenant arrangement
3. Definitions: Detailed definitions of key terms including 'Confidential Information', 'Trade Secrets', 'Restricted Business', 'Territory', and other relevant terms
4. Confidentiality Obligations: Detailed provisions regarding the protection, use, and non-disclosure of confidential information
5. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to employees, advisors, or as required by law
6. Non-Competition Covenant: Restrictions on competing activities during and after the relationship, specifying scope, duration, and geographic limitations
7. Non-Solicitation Covenant: Restrictions on soliciting employees, customers, or suppliers
8. Return of Confidential Information: Obligations regarding the return or destruction of confidential information upon termination or request
9. Term and Termination: Duration of the agreement and circumstances under which it may be terminated
10. Breach and Remedies: Consequences of breach and available remedies, including injunctive relief
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for dispute resolution
12. General Provisions: Standard provisions including severability, entire agreement, amendments, and notices
1. Intellectual Property Rights: Additional provisions regarding ownership and protection of IP rights, particularly relevant when confidential information includes IP
2. Data Protection: Specific provisions regarding personal data protection, necessary when confidential information includes personal data
3. Assignment and Succession: Provisions regarding the transfer of rights and obligations, important for corporate transactions
4. Dispute Resolution: Detailed dispute resolution procedures including mediation or arbitration, useful for complex commercial relationships
5. Survival: Specific provisions about which obligations survive termination, important for long-term protection
6. Electronic Communications: Provisions regarding electronic storage and transmission of confidential information, relevant for digital businesses
7. Third Party Rights: Provisions regarding the rights of third parties, relevant when group companies are involved
1. Schedule 1 - Confidential Information: Detailed list or categories of information considered confidential
2. Schedule 2 - Restricted Territory: Detailed description or map of geographical areas covered by restrictive covenants
3. Schedule 3 - Restricted Business Activities: Detailed description of prohibited business activities
4. Schedule 4 - Key Competitors: List of specific competitors with whom engagement is restricted
5. Schedule 5 - Authorized Recipients: List of persons or entities authorized to receive confidential information
6. Appendix A - Security Protocols: Specific procedures for handling and protecting confidential information
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