The Supplier Non Compete Agreement is essential when companies need to protect their business interests while engaging with suppliers who may gain access to sensitive information or processes. This document, governed by U.S. federal and state laws, establishes clear boundaries for post-relationship competition, including specific restrictions on geographic area, time period, and scope of activities. It's particularly important when suppliers could potentially leverage learned information or relationships to compete directly with the principal company. The agreement must balance business protection with reasonable restrictions to ensure enforceability across different state jurisdictions.
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1. Parties: Identification and details of the contracting parties, including full legal names and addresses
2. Background: Context of the agreement, nature of the business relationship, and purpose of the non-compete restrictions
3. Definitions: Key terms used throughout the agreement, including 'Competitive Business', 'Restricted Period', and 'Territory'
4. Scope of Non-Compete: Detailed description of restricted activities and prohibited competition
5. Duration: Specific time period for which the non-compete restrictions will apply
6. Geographic Scope: Territorial limitations and boundaries of the restricted area
7. Confidentiality Obligations: Requirements for protecting confidential information and trade secrets
8. Remedies: Legal remedies available in case of breach, including injunctive relief and damages
9. Governing Law: Specification of applicable law and jurisdiction
1. Consideration: Details of specific compensation or benefits provided in exchange for non-compete obligations
2. Exceptions: Specific carved-out activities or circumstances where competition is permitted
3. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers
4. Assignment: Terms regarding the ability to assign rights and obligations under the agreement
5. Severability: Provisions for maintaining validity of remaining terms if any portion is found unenforceable
1. Schedule A - Restricted Activities: Detailed enumeration of specific activities prohibited under the agreement
2. Schedule B - Restricted Territory: Detailed description or map of geographic areas covered by restrictions
3. Schedule C - Consideration Details: Breakdown of any specific consideration or compensation provided for the non-compete obligations
4. Schedule D - Competitive Business Definition: Detailed description of what constitutes competitive business activities
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