This restraint of trade or “non-competition clause” ensures that there should be no conflict of interest and the limitation of business participation when the Transferee takes over the business. It is commonly used to limit the business to participate in any activity that could cause economic injury to other businesses or the whole industry. The period range is solely dependent on both parties however it could be more or less than 12 months.
The Transferee shall not, without written consent, share any part of information owned and related to the Company, especially those information that is not published publicly or not considered a public record. This information includes but is not limited to client data, company trade secrets, affiliates, third parties, financial status, investor's list, suppliers, and any other relative information that the employees knew and should have known, which are all confidential.
WHEREAS, this Agreement should be signed in counterpart.
NOW, THEREFORE, the Parties of this Agreement, the Transferor and the Transferee, acknowledge their part of this Agreement. The Parties will request a special meeting arrangement to properly document all the details required for the takeover of the Transferee. All necessary documents such as the contracts, constitution and by-laws of the organization, rules and regulations, memorandum, and bulletin exclusive for the use of the Company.