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Sales Non Compete Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Sales Non Compete Agreement

"I need a Sales Non-Compete Agreement for a senior sales manager in the pharmaceutical industry, operating across Hong Kong and mainland China, with a 12-month restriction period starting from January 2025 and specific provisions for protecting our client relationships in both territories."

Document background
The Sales Non-Compete Agreement is essential for businesses operating in Hong Kong who need to protect their customer relationships, confidential information, and market position from departing sales personnel. This document becomes particularly relevant in industries with high customer value and significant investment in client relationships. The agreement must comply with Hong Kong's common law principles, which require non-compete provisions to be reasonable in duration, geographical scope, and prohibited activities. It typically includes detailed provisions about restricted territories, customer non-solicitation, confidentiality obligations, and remedies for breach. The document should be customized based on the specific role, seniority, and access to confidential information of the sales professional, while ensuring enforceability under Hong Kong law.
Suggested Sections

1. Parties: Identifies and defines the contracting parties - typically the employer/company and the sales representative

2. Background: Sets out the context of the agreement, including the nature of the sales relationship and reason for the non-compete provisions

3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Restricted Business', 'Territory', and 'Restricted Period'

4. Non-Compete Obligations: Details the specific competitive activities that are prohibited, including geographical and temporal scope

5. Non-Solicitation Provisions: Prohibitions on soliciting customers, employees, or suppliers

6. Confidentiality Obligations: Requirements regarding the protection and non-disclosure of confidential information

7. Duration and Territory: Specifies the time period and geographical area where restrictions apply

8. Consideration: Details the consideration provided in exchange for the non-compete obligations

9. Acknowledgments: Party acknowledgments regarding reasonableness of restrictions and receipt of consideration

10. Remedies: Specifies available remedies in case of breach, including injunctive relief

11. General Provisions: Standard contract clauses including governing law, jurisdiction, and entire agreement

Optional Sections

1. Garden Leave: Optional provisions for paid leave during notice period to protect business interests

2. Post-Termination Obligations: Additional specific obligations after relationship termination

3. Training and Development Costs: Provisions regarding repayment of training costs if applicable

4. Commission and Outstanding Payments: Terms regarding handling of outstanding commissions post-termination

5. Return of Property: Specific provisions about returning company property and materials

6. Dispute Resolution: Alternative dispute resolution procedures if preferred over court litigation

7. Severability: Provisions for maintaining validity if certain clauses are found unenforceable

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed description of geographical areas where restrictions apply

2. Schedule 2 - Restricted Customers: List or categories of customers covered by non-solicitation provisions

3. Schedule 3 - Restricted Products/Services: Detailed description of products/services covered by restrictions

4. Schedule 4 - Confidential Information: Detailed categories of confidential information covered

5. Schedule 5 - Compensation Details: Specific details of any compensation provided for the restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Financial Services

Professional Services

Manufacturing

Retail

Pharmaceuticals

Telecommunications

Insurance

Real Estate

Consumer Goods

Industrial Equipment

Healthcare

Software and IT

Relevant Teams

Sales

Business Development

Account Management

Legal

Human Resources

Compliance

Executive Leadership

Sales Operations

Commercial

Relevant Roles

Sales Director

Sales Manager

Account Executive

Business Development Manager

Regional Sales Manager

Sales Representative

Key Account Manager

Territory Manager

Inside Sales Representative

Sales Consultant

Channel Sales Manager

VP of Sales

Chief Sales Officer

Sales Operations Manager

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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