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Supplier Non Compete Agreement

Supplier Non Compete Agreement Template for United States

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Key Requirements PROMPT example:

Supplier Non Compete Agreement

"I need a Supplier Non Compete Agreement for our manufacturing company that restricts our key component supplier from working with competitors in the automotive industry across the Western United States for 2 years starting January 2025."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

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

alex.den.21@genieai.co
Clauses






















Industries

Federal Antitrust Laws: Key federal legislation including Sherman Antitrust Act, Clayton Act, and Federal Trade Commission Act that ensure the agreement doesn't unreasonably restrict trade or competition

State-Specific Non-Compete Laws: Varying state requirements and restrictions on non-compete agreements, with some states like California heavily restricting them while others like Florida being more permissive but with specific requirements

Contract Law Principles: Basic contract formation requirements including consideration requirements, contract formation elements, and reasonableness standards

Trade Secret Laws: Federal Defend Trade Secrets Act (DTSA), state-specific trade secret laws, and Uniform Trade Secrets Act where adopted

Enforceability Requirements: Key elements for enforcement including reasonable geographic scope, time duration, legitimate business interest protection, clear definition of prohibited activities, and consideration for existing relationships

State-Specific Requirements: State-level specifications for duration limits, geographic restrictions, industry-specific regulations, blue pencil provisions, and consideration requirements

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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