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Supplier Non Compete Agreement
"I need a Supplier Non-Compete Agreement for our IT consulting supplier who will have access to our proprietary software development methodologies; the agreement should cover Ireland and the UK, with a two-year restriction period starting from March 2025."
1. Parties: Identifies and defines the contracting parties - typically the company (recipient of services) and the supplier
2. Background: Sets out the context of the agreement, nature of the supplier relationship, and reason for the non-compete provisions
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Competitive Business', 'Territory', and 'Restricted Period'
4. Non-Compete Obligations: Core restrictions on the supplier's competitive activities, including scope, duration, and geographical limitations
5. Non-Solicitation Provisions: Restrictions on soliciting customers, employees, or other suppliers of the company
6. Confidentiality Obligations: Requirements for handling and protecting confidential information
7. Duration and Territory: Specific timeframes and geographical areas where restrictions apply
8. Acknowledgments: Supplier's acknowledgment that restrictions are reasonable and necessary
9. Remedies: Available remedies in case of breach, including injunctive relief and damages
10. General Provisions: Standard contract clauses including governing law, jurisdiction, entire agreement, and severability
1. Assignment and Succession: Include when the agreement needs to address transfer of rights or obligations
2. Group Company Provisions: Include when protection needs to extend to affiliated companies
3. Intellectual Property: Include when the supplier relationship involves creation or use of IP
4. Post-Termination Obligations: Include when specific obligations continue after the main supplier relationship ends
5. Consideration: Include when specific consideration is provided for the non-compete obligations
6. Garden Leave: Include for hybrid employee-supplier relationships where garden leave might be applicable
7. Monitoring and Compliance: Include when specific compliance reporting or monitoring is required
1. Schedule 1 - Restricted Territory: Detailed description of geographical areas where restrictions apply
2. Schedule 2 - Competitive Business Activities: Specific list of prohibited business activities and competitors
3. Schedule 3 - Protected Customers: List of customers covered by non-solicitation provisions
4. Schedule 4 - Confidential Information: Detailed categories of confidential information covered
5. Schedule 5 - Group Companies: List of affiliated companies protected by the agreement
Authors
Technology
Manufacturing
Professional Services
Healthcare
Financial Services
Telecommunications
Research and Development
Pharmaceuticals
Consumer Goods
Engineering
Consulting
Software Development
Biotechnology
Legal
Procurement
Commercial
Supply Chain
Vendor Management
Operations
Risk and Compliance
Business Development
Senior Management
Contract Administration
Legal Counsel
Procurement Manager
Commercial Director
Chief Legal Officer
Supply Chain Manager
Vendor Relations Manager
Contract Manager
Chief Operating Officer
Business Development Director
Risk Manager
Compliance Officer
General Counsel
Senior Procurement Officer
Operations Director
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