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Sales Non Compete Agreement Template for Malaysia

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Key Requirements PROMPT example:

Sales Non Compete Agreement

"I need a Sales Non-Compete Agreement for our Malaysian technology company to use with our senior sales representatives who handle enterprise clients in Southeast Asia, with specific focus on protecting our customer relationships and proprietary sales methodologies for a period of 24 months post-employment."

Document background
The Sales Non-Compete Agreement is essential for businesses operating in Malaysia who need to protect their customer relationships, confidential information, and market position from competitive activities by former sales personnel. This document is typically implemented when engaging sales professionals who will have access to sensitive customer information, pricing strategies, and proprietary sales methodologies. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950 and Competition Act 2010, ensuring that restrictions are reasonable and enforceable. It's particularly relevant in situations where sales representatives develop close customer relationships and gain intimate knowledge of business operations that could be harmful if used by competitors.
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, relationship between parties, and purpose of the non-compete restrictions

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

4. Duration and Territory: Specific timeframe and geographical scope of the non-compete restrictions

5. Scope of Restrictions: Detailed description of prohibited activities, including direct/indirect competition, solicitation of customers/employees

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

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

8. Enforcement and Remedies: Rights and remedies available in case of breach, including injunctive relief

9. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for dispute resolution

10. Execution: Signature blocks and execution formalities

Optional Sections

1. Assignment: Terms regarding the ability to assign rights and obligations under the agreement, used when transfer of rights might be necessary

2. Severability: Provision ensuring that if any part of the agreement is found invalid, the rest remains enforceable - particularly important in jurisdictions where non-compete enforcement can be challenging

3. Garden Leave: Provisions for paid leave during notice period to prevent immediate competition, used primarily for senior sales positions

4. Return of Property: Requirements for returning company property and materials, important when sales staff has access to significant company resources

5. Post-Termination Obligations: Additional obligations after the end of the relationship, used when there are specific concerns about post-relationship conduct

6. Alternative Dispute Resolution: Mediation or arbitration provisions, useful for maintaining confidentiality in disputes

7. Force Majeure: Provisions for unforeseen circumstances affecting performance, included when long-term obligations exist

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by the non-compete restrictions

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

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

4. Schedule 4 - Consideration Details: Breakdown of any financial compensation or benefits provided as consideration

5. Appendix A - Confidential Information: Detailed categorization of information considered confidential under the agreement

6. Appendix B - Compliance Certificate: Form of certificate to be signed periodically confirming compliance with non-compete obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Pharmaceutical and Healthcare

Financial Services

Manufacturing

Professional Services

Retail and Consumer Goods

Telecommunications

Industrial Equipment

Real Estate

Insurance

Automotive

Relevant Teams

Sales

Business Development

Account Management

Channel Distribution

Customer Success

Commercial Operations

Market Development

Technical Sales

Strategic Accounts

Sales Operations

Relevant Roles

Sales Director

Regional Sales Manager

Account Executive

Business Development Manager

Sales Representative

Territory Manager

Key Account Manager

Sales Consultant

Channel Sales Manager

Distribution Manager

Sales Engineer

Technical Sales Specialist

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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