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Compensation For Signing A Non Compete Agreement Template for Nigeria

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Key Requirements PROMPT example:

Compensation For Signing A Non Compete Agreement

"I need a Compensation For Signing A Non Compete Agreement for our departing Chief Technology Officer in Lagos, Nigeria, with a 2-year restriction period starting March 2025, covering West Africa region, and including monthly compensation payments of 40% of their final salary."

Document background
The Compensation For Signing A Non Compete Agreement is a crucial document used in Nigerian business relationships where companies need to protect their legitimate business interests from competition by former employees. This document is typically implemented when an employee has access to sensitive information, trade secrets, or valuable client relationships. The agreement must comply with Nigerian legal requirements, including the principle of reasonable restraint of trade and the necessity for adequate consideration. It should specify clear geographical boundaries, time limits, and scope of restricted activities, while ensuring the compensation offered is commensurate with the restrictions imposed. The document is particularly relevant in the context of senior exits, strategic hires, and during business acquisitions or mergers in Nigeria.
Suggested Sections

1. Parties: Identification of the employer/company and the individual subject to the non-compete agreement

2. Background: Context of the agreement, including the individual's role and access to confidential information/trade secrets

3. Definitions: Key terms used in the agreement including 'Competitive Business', 'Restricted Period', 'Restricted Territory', 'Confidential Information'

4. Non-Compete Obligations: Detailed description of competitive activities the individual agrees not to engage in

5. Geographic Scope: Specific territories where the non-compete restrictions apply

6. Duration: Time period for which the non-compete obligations remain in effect

7. Compensation: Details of the compensation amount, payment schedule, and conditions for payment

8. Payment Terms: Specifics about how and when the compensation will be paid

9. Tax Implications: Statement about tax treatment of the compensation and responsibilities for tax payments

10. Breach and Remedies: Consequences of breaching the agreement and available remedies

11. Governing Law: Specification that Nigerian law governs the agreement

12. Signatures: Execution block for all parties to sign and date the agreement

Optional Sections

1. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers - include when broader protection is needed

2. Confidentiality: Detailed confidentiality obligations - include when not covered in a separate agreement

3. Return of Company Property: Requirements for returning company property - include when not covered in other agreements

4. Survival: Provisions that continue after agreement termination - include for additional clarity

5. Independent Legal Advice: Acknowledgment of receiving independent legal advice - include for additional enforceability

6. Severability: Clause ensuring partial validity if some provisions are found unenforceable - recommended for complex agreements

7. Assignment: Rights to assign the agreement - include when relevant to corporate structure

Suggested Schedules

1. Schedule A - Compensation Structure: Detailed breakdown of compensation amounts, installments, and payment timing

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

3. Schedule C - Competitive Business Description: Detailed description of prohibited business activities and competitors

4. Appendix 1 - Tax Treatment: Detailed explanation of tax implications and calculations

5. Appendix 2 - Acknowledgment Form: Form for periodic acknowledgment of compliance with agreement terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ 红杏直播 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries

Technology

Financial Services

Manufacturing

Oil and Gas

Telecommunications

Professional Services

Healthcare

Pharmaceuticals

Fast-Moving Consumer Goods

E-commerce

Consulting

Energy

Real Estate

Agriculture

Mining

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Research and Development

Product Development

Finance

Operations

Information Technology

Business Development

Strategy

Marketing

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Managing Director

Sales Director

Senior Software Engineer

Business Development Manager

Regional Manager

Head of Research and Development

Chief Financial Officer

Product Manager

Senior Account Manager

Technical Lead

Operations Director

Chief Marketing Officer

Senior Consultant

Executive Director

Vice President

Head of Strategy

Chief Operating Officer

Senior Research Scientist

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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