This Confidentiality and Non-Compete Agreement is essential for businesses operating in Malaysia seeking to protect their proprietary information and maintain competitive advantage. The document is typically used when engaging employees, contractors, or consultants who will have access to sensitive business information or strategic knowledge. It combines robust confidentiality provisions with carefully crafted non-compete restrictions that comply with Malaysian legal requirements, particularly the Contracts Act 1950 and Competition Act 2010. The agreement is structured to be enforceable under Malaysian law, which requires non-compete provisions to be reasonable in scope, duration, and geographic coverage. It includes specific provisions for both during and post-employment periods, detailed definitions of confidential information, and clear mechanisms for enforcement.
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1. Parties: Identifies and defines the parties to the agreement
2. Background: Sets out the context and purpose of the agreement
3. Definitions: Defines key terms including 'Confidential Information', 'Competitive Activities', 'Territory', and 'Restricted Period'
4. Confidentiality Obligations: Details the obligations regarding confidential information, including use, disclosure, and protection
5. Non-Compete Obligations: Specifies restrictions on competitive activities, including scope, duration, and geographic limitations
6. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers
7. Return of Confidential Information: Requirements for returning or destroying confidential information
8. Duration and Survival: Specifies how long obligations last and which provisions survive termination
9. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
10. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and severability
1. Intellectual Property Rights: Additional provisions protecting IP rights when confidential information includes intellectual property
2. Security Measures: Specific security protocols required for protecting confidential information, used for highly sensitive information
3. Third Party Disclosure: Procedures for authorized disclosure to third parties, needed when third-party access may be required
4. Garden Leave: Provisions for paid leave during notice period, typically used for senior executives
5. Independent Contractor Provision: Clarifies relationship status when agreement is with contractors rather than employees
6. International Operations: Additional provisions for cross-border applications, used when parties operate internationally
7. Monitoring and Compliance: Specific procedures for monitoring compliance, used in high-risk industries
1. Schedule 1 - Confidential Information: Detailed list or categories of information considered confidential
2. Schedule 2 - Restricted Territory: Detailed description or map of geographical areas covered by non-compete
3. Schedule 3 - Competitive Business Activities: Specific description of prohibited business activities
4. Schedule 4 - Key Customers/Suppliers: List of specific customers/suppliers covered by non-solicitation provisions
5. Appendix A - Security Protocols: Detailed security measures for handling confidential information
6. Appendix B - Disclosure Log: Template for recording authorized disclosures of confidential information
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