This Non-Compete Agreement is designed for use in New Zealand business contexts where there is a legitimate need to protect business interests, trade secrets, client relationships, or other confidential information. It is commonly used in employment terminations, business sales, partnership dissolutions, or when engaging senior executives or key employees. The document must comply with New Zealand's legal framework, which requires that restrictions be reasonable in duration and geographic scope, and necessary to protect legitimate business interests. Courts in New Zealand will only enforce non-compete provisions that are proportionate and do not unduly restrict an individual's ability to earn a living. The agreement typically includes specific details about restricted activities, time periods, territorial limits, and consideration provided in exchange for the restrictions.
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1. Parties: Identifies and defines all parties to the agreement, including full legal names and addresses
2. Background: Sets out the context of the agreement, including the relationship between the parties and the legitimate business interests being protected
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Competitive Activity', 'Restricted Period', and 'Restricted Territory'
4. Scope of Restrictions: Details the specific activities that are prohibited, including competition, solicitation of customers, and poaching of employees
5. Duration and Geographic Limits: Specifies the time period and geographical area where the restrictions apply
6. Acknowledgments: Contains statements by the restricted party acknowledging the reasonableness of the restrictions and the receipt of consideration
7. Confidentiality Obligations: Outlines obligations regarding the protection and non-disclosure of confidential information
8. Consideration: Details the consideration provided in exchange for the non-compete obligations
9. Breach and Remedies: Specifies the consequences of breach and available remedies, including injunctive relief
10. General Provisions: Standard boilerplate clauses including governing law, severability, and entire agreement
1. Garden Leave: Include when the agreement covers a period where the restricted party will be paid but not required to work
2. Assignment Rights: Include when there may be a need to transfer the agreement rights to another entity
3. Return of Property: Include when the restricted party has possession of company property or materials
4. Independent Legal Advice: Include when there's a need to document that the restricted party had the opportunity to seek legal advice
5. Dispute Resolution: Include when parties wish to specify alternative dispute resolution mechanisms before litigation
6. Post-Termination Obligations: Include when there are specific obligations that continue after the main restriction period
7. Industry-Specific Provisions: Include when the industry has specific regulatory requirements or standard practices
1. Schedule 1 - Restricted Territory: Detailed description or map of the geographical areas where restrictions apply
2. Schedule 2 - Restricted Clients: List of specific clients or customer categories covered by non-solicitation provisions
3. Schedule 3 - Restricted Business Activities: Detailed description of specific business activities that are restricted
4. Schedule 4 - Consideration Details: Breakdown of any financial or other consideration provided
5. Appendix A - Confidential Information: Detailed list or categories of confidential information covered by the agreement
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