Non Compete Non Circumvent Agreement Template for Malaysia

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Key Requirements PROMPT example:

Non Compete Non Circumvent Agreement

"I need a Non-Compete Non-Circumvent Agreement for a technology consulting firm in Malaysia, to be used with our senior software developers who have access to client relationships and proprietary code, with a restriction period of 24 months within the Southeast Asian region."

Document background

The Non-Compete Non-Circumvent Agreement (NCNCA) is essential for businesses operating in Malaysia seeking to protect their legitimate interests, trade secrets, and business relationships. This document is typically used when engaging with partners, employees, or contractors who will have access to sensitive business information or valuable business relationships. The agreement, while subject to Malaysian law and jurisprudence, must balance the protection of business interests with reasonable restrictions that courts will enforce. It includes specific provisions about prohibited activities, geographical limitations, duration of restrictions, and remedies for breach, all structured to comply with Malaysian contract law principles and competition regulations. The document is particularly crucial in scenarios involving business partnerships, employment relationships, or collaborative ventures where there's a risk of competitive activities or circumvention of established business relationships.

Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, nature of business relationship, and purpose of entering into the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Confidential Information', 'Competing Business', 'Territory', etc.

4. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographical limitations

5. Non-Circumvention Obligations: Provisions preventing direct/indirect circumvention of business relationships, including restrictions on approaching clients, suppliers, or partners

6. Duration and Territory: Explicit timeframe for restrictions and geographical scope of application

7. Confidentiality Obligations: Requirements for handling and protecting confidential information

8. Acknowledgments: Parties' acknowledgment of reasonableness of restrictions and receipt of consideration

9. Remedies: 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 employees, clients, or suppliers - used when human capital protection is crucial

2. Assignment: Rights and restrictions regarding assignment of the agreement - important for corporate restructuring scenarios

3. Consideration: Detailed section on consideration provided - needed when specific compensation is offered for restrictions

4. Monitoring and Compliance: Procedures for monitoring compliance - useful in high-value or high-risk relationships

5. Survival: Provisions that survive termination - important when certain obligations should continue beyond the agreement term

6. Return of Materials: Obligations regarding return of materials upon termination - relevant when physical or digital assets are involved

7. Independent Contractor: Clarification of relationship status - important in consulting or contractor relationships

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed definition of geographical areas covered by restrictions

2. Schedule 2 - Restricted Business Activities: Comprehensive list of prohibited business activities and sectors

3. Schedule 3 - Protected Relationships: List of specific clients, suppliers, or partners covered by non-circumvention provisions

4. Schedule 4 - Confidential Information: Detailed categorization of information considered confidential

5. Appendix A - Consideration Details: Specific details of any consideration provided for the restrictions

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology and Software

Manufacturing

Professional Services

Financial Services

Healthcare and Pharmaceuticals

Telecommunications

Energy and Resources

Research and Development

Retail and Distribution

Construction and Engineering

Business Consulting

International Trade

Relevant Teams

Legal

Executive Leadership

Business Development

Sales

Research & Development

Product Development

Strategic Planning

Operations

Procurement

Commercial

Partner Relations

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Sales Director

Technical Director

Senior Consultant

Research & Development Manager

Chief Technology Officer

Business Partner

Account Manager

Project Manager

Operations Director

Product Manager

Strategic Alliance Manager

Investment Manager

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Let's create your Non Compete Non Circumvent Agreement

Authors

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