The Non-Compete Agreement For Business Partners is a crucial legal document used when establishing or maintaining business partnerships in Indonesia where protecting business interests, trade secrets, and competitive advantage is essential. This agreement is particularly relevant when partners share sensitive business information, proprietary knowledge, or access to key clients and markets. It must comply with Indonesian legal framework, including the Civil Code, Anti-Monopoly Law, and business partnership regulations. The document typically includes specific provisions on restricted activities, geographical limitations, duration of restrictions, and enforcement mechanisms. It's designed to protect legitimate business interests while remaining reasonable and enforceable under Indonesian law, making it essential for partnerships in competitive industries or where significant intellectual property or market share is at stake.
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1. Parties: Identification of all business partners and their legal details
2. Background: Context of the business relationship and reason for the non-compete agreement
3. Definitions: Clear definitions of key terms including Confidential Information, Competitive Business, Territory, and Restricted Period
4. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas
5. Geographic Limitations: Specific territorial boundaries where the non-compete restrictions apply
6. Duration: Time period for which the non-compete obligations remain in effect
7. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information
8. Consideration: The business benefit or compensation provided in exchange for the non-compete obligations
9. Exceptions and Permitted Activities: Specific activities that are allowed despite the non-compete provisions
10. Remedies and Enforcement: Legal remedies available in case of breach, including injunctive relief
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of courts/jurisdiction
12. Termination: Circumstances under which the agreement can be terminated and the consequences
13. General Provisions: Standard clauses including severability, entire agreement, and amendments
1. Non-Solicitation: Additional restrictions on soliciting employees, clients, or suppliers - include when there's significant risk of business relationship interference
2. Training and Knowledge Transfer: Provisions regarding any business knowledge or training provided - relevant when substantial proprietary knowledge is shared
3. Audit Rights: Right to audit compliance with the agreement - include for high-value or high-risk partnerships
4. Insurance Requirements: Obligations to maintain specific insurance coverage - relevant for certain regulated industries or high-risk activities
5. Alternative Dispute Resolution: Mediation or arbitration procedures - include when parties prefer alternative dispute resolution to court proceedings
6. Exit Mechanisms: Detailed procedures for partnership dissolution - important for complex business relationships
7. Survival Clauses: Specific provisions that continue after agreement termination - include when certain obligations should extend beyond the main agreement
1. Schedule A - Restricted Business Activities: Detailed list of specific business activities, products, or services covered by the non-compete
2. Schedule B - Territory Definition: Maps or detailed description of geographic areas where restrictions apply
3. Schedule C - Existing Business Interests: Declaration of current business interests and activities of all parties
4. Schedule D - Consideration Details: Specific details of any financial or business considerations provided
5. Appendix 1 - Confidential Information: Detailed categorization of information considered confidential under the agreement
6. Appendix 2 - Compliance Requirements: Specific procedures and requirements for ensuring compliance with the agreement
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