The Non-Compete Non-Circumvent Agreement is essential for businesses operating in the Philippines seeking to protect their competitive advantages, confidential information, and business relationships. This document is particularly crucial given the Philippines' dynamic business environment and the increasing mobility of workforce and business partnerships. The agreement must be carefully crafted to comply with Philippine constitutional rights, civil code provisions, and labor regulations, which generally favor employee rights and fair competition. It typically includes detailed provisions on restricted activities, geographic limitations, time periods, and specific protected relationships, while ensuring restrictions are reasonable and enforceable under Philippine law. This document is commonly used in employment relationships, business partnerships, joint ventures, and consulting arrangements where parties have access to sensitive information or valuable business relationships.
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1. Parties: Identifies and defines all parties to the agreement, including their legal names, addresses, and company registration details
2. Background: Explains the context and purpose of the agreement, including the business relationship between the parties
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Competitive Activities', 'Territory', and 'Restricted Period'
4. Non-Compete Obligations: Details the specific activities, industries, and roles that are restricted, including geographic scope and duration
5. Non-Circumvention Obligations: Specifies prohibited actions regarding direct business relationships, customers, suppliers, and other business opportunities
6. Duration and Territory: Clearly defines the time period and geographic area where restrictions apply
7. Confidentiality Obligations: Outlines the handling and protection of confidential information exchanged between parties
8. Legitimate Business Interests: Establishes the legitimate business interests being protected to support enforceability
9. Acknowledgments: Contains party acknowledgments regarding the reasonableness of restrictions and receipt of consideration
10. Remedies: Specifies available remedies for breach, including injunctive relief and damages
11. General Provisions: Standard clauses including governing law, jurisdiction, severability, and entire agreement
1. Independent Contractor Relationship: Required when agreement involves independent contractors - clarifies non-employment relationship
2. Assignment Rights: Include when transfer of rights needs to be specifically addressed or restricted
3. Survival Clause: Add when certain obligations need to explicitly survive agreement termination
4. Return of Materials: Include when physical or digital materials must be returned upon relationship termination
5. Non-Solicitation Provisions: Add specific provisions about not soliciting employees, customers, or suppliers
6. Consideration: Required when specific consideration is being provided for the restrictions
7. Audit Rights: Include when compliance monitoring rights are needed
8. Garden Leave: Add for executive agreements where paid non-compete period is contemplated
1. Schedule A - Restricted Activities: Detailed list of specific activities, businesses, and roles that are restricted
2. Schedule B - Territory Definition: Detailed description or map of geographic areas where restrictions apply
3. Schedule C - Protected Relationships: List of specific customers, suppliers, or business relationships covered by non-circumvention
4. Schedule D - Consideration Details: If applicable, detailed breakdown of consideration provided for the restrictions
5. Appendix 1 - Competitor List: Non-exhaustive list of known competitors or competitive businesses
6. Appendix 2 - Confidential Information Categories: Detailed categorization of types of confidential information covered
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