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Non Compete Agreement Between Companies Template for Hong Kong

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Key Requirements PROMPT example:

Non Compete Agreement Between Companies

I need a Non-Compete Agreement Between Companies for a software development partnership in Hong Kong, where Company A wants to restrict Company B from competing in AI development across Southeast Asia for 3 years starting January 2025.

Document background
The Non-Compete Agreement Between Companies is essential in Hong Kong's dynamic business environment where companies frequently collaborate, share sensitive information, or enter into strategic partnerships. This document is typically used when companies engage in joint ventures, mergers and acquisitions, strategic alliances, or other business relationships where one party gains access to sensitive business information, technologies, or market insights of another. The agreement must be carefully drafted to comply with Hong Kong's Competition Ordinance and common law principles, ensuring that restrictions are reasonable in scope, duration, and geographic reach. It should clearly define prohibited activities, include appropriate carve-outs for legitimate business operations, and specify enforcement mechanisms while maintaining compliance with local competition laws.
Suggested Sections

1. Parties: Identification of the companies entering into the agreement, including their full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the business relationship between the parties and legitimate business interests being protected

3. Definitions: Key terms used in the agreement, including 'Competitive Business', 'Restricted Territory', 'Confidential Information', and 'Restricted Period'

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas

5. Duration and Territory: Specific timeframe and geographical areas where restrictions apply

6. Exceptions and Permitted Activities: Activities that are explicitly allowed despite the general non-compete provisions

7. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information

8. Representations and Warranties: Statements affirming each party's authority to enter into the agreement and compliance with competition laws

9. Remedies and Enforcement: Available remedies in case of breach, including injunctive relief and damages

10. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and severability

Optional Sections

1. Non-Solicitation: Additional restrictions on soliciting customers, suppliers, or employees - include when broader protection is needed

2. Transfer of Rights: Provisions regarding assignment and succession - include when dealing with larger corporations likely to undergo restructuring

3. Dispute Resolution: Specific procedures for resolving disputes, such as mediation or arbitration - include when parties prefer alternative dispute resolution

4. Change of Control: Provisions addressing corporate restructuring or ownership changes - include when dealing with dynamic business environments

5. Compliance with Competition Laws: Detailed provisions ensuring compliance with Hong Kong Competition Ordinance - include when activities might raise competition law concerns

6. Independent Contractor Relationship: Clarification of the parties' independent status - include when there might be confusion about the relationship

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific business activities, products, or services covered by the non-compete

2. Schedule 2 - Restricted Territory: Detailed maps or descriptions of geographical areas where restrictions apply

3. Schedule 3 - Existing Commitments: List of pre-existing obligations or relationships that are exempt from the restrictions

4. Schedule 4 - Affiliated Companies: List of subsidiaries, parent companies, or affiliated entities covered by the agreement

5. Appendix A - Compliance Guidelines: Guidelines for ensuring compliance with the non-compete obligations

6. Appendix B - Notice Requirements: Procedures and forms for required notifications between parties

Authors

Alex Denne

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

Relevant legal definitions









































Clauses






























Relevant Industries

Technology and Software

Financial Services

Professional Services

Manufacturing

Healthcare and Pharmaceuticals

Retail and E-commerce

Telecommunications

Research and Development

Consumer Goods

Industrial Services

Media and Entertainment

Consulting Services

Biotechnology

Relevant Teams

Legal

Corporate Development

Compliance

Executive Leadership

Business Development

Commercial Operations

Risk Management

Strategy

Mergers & Acquisitions

Corporate Governance

Partnerships

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Commercial Director

Business Development Manager

Corporate Lawyer

Legal Counsel

Compliance Officer

Chief Operations Officer

Chief Strategy Officer

Mergers & Acquisitions Director

Partnership Manager

Risk Management Officer

Company Secretary

Chief Commercial Officer

Industries






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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