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Non Compete Non Solicitation Agreement

Non Compete Non Solicitation Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Non Compete Non Solicitation Agreement

I need a Non-Compete Non Solicitation Agreement for a new Chief Technology Officer joining our fintech company in Hong Kong in January 2025, with restrictions covering the APAC region and a focus on protecting our proprietary trading algorithms and key client relationships.

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Technology

Financial Services

Professional Services

Healthcare

Pharmaceuticals

Manufacturing

Retail

Telecommunications

Management Consulting

Information Technology

Banking

Insurance

Legal Services

Biotechnology

Research and Development

Relevant Teams

Sales

Business Development

Research and Development

Executive Leadership

Product Development

Client Services

Professional Services

Investment

Technology

Operations

Customer Success

Strategic Accounts

Legal

Human Resources

Information Technology

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Sales Director

Business Development Manager

Senior Software Engineer

Research Scientist

Account Manager

Regional Manager

Technical Lead

Product Manager

Senior Consultant

Managing Director

Partner

Vice President

Chief Technology Officer

Head of Sales

Senior Account Executive

Investment Manager

Portfolio Manager

Principal Consultant

Industries
Competition Ordinance (Cap. 619): Ensures that non-compete provisions do not constitute anti-competitive behavior or abuse of market power
Employment Ordinance (Cap. 57): Provides the basic framework for employment relationships and post-employment obligations in Hong Kong
Basic Law of Hong Kong: Article 33 guarantees freedom of choice of occupation, which must be balanced against restrictive covenants
Contract Law (Common Law): Governs the general principles of contract formation, enforceability, and the doctrine of restraint of trade
Personal Data (Privacy) Ordinance (Cap. 486): Regulates the collection, use, and handling of personal data in contractual relationships
Trade Secrets Law (Common Law): Protects confidential information and trade secrets, which is often a key consideration in non-compete agreements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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