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Vendor Non Compete Agreement
"I need a Vendor Non-Compete Agreement for a software development contractor in Sydney who will have access to our proprietary code and client data, with restrictions covering Australia and New Zealand for 12 months after the contract ends in March 2025."
1. Parties: Identification of the contracting parties including full legal names, ABNs, and registered addresses
2. Background: Context of the agreement, nature of the business relationship, and legitimate business interests being protected
3. Definitions and Interpretation: Key terms used throughout the agreement, including 'Confidential Information', 'Competitive Activity', 'Restricted Period', and 'Restricted Territory'
4. Non-Compete Obligations: Core restrictions on competitive activities, clearly defining prohibited actions and business activities
5. Geographic and Time Restrictions: Specific details of the geographical areas and time period where restrictions apply
6. Confidentiality Obligations: Requirements regarding the protection and non-use of confidential information
7. Non-Solicitation: Restrictions on soliciting customers, employees, or suppliers
8. Acknowledgments: Vendor's acknowledgment of reasonableness of restrictions and receipt of consideration
9. Consideration: Details of the consideration provided in exchange for the non-compete obligations
10. Enforcement and Remedies: Rights and remedies available in case of breach, including injunctive relief
11. Severability: Provisions for maintaining validity if certain clauses are found unenforceable
12. General Provisions: Standard contractual terms including notices, governing law, and entire agreement
1. Assignment and Succession: Include when the agreement needs to bind successors or assignees, particularly relevant for corporate vendors
2. Independent Contractor Relationship: Include when the vendor is an individual contractor to clarify the nature of the relationship
3. Intellectual Property Protection: Include when specific IP rights need protection beyond general confidentiality provisions
4. Training and Trade Secrets: Include when the vendor has received specialized training or access to valuable trade secrets
5. Exceptions and Permitted Activities: Include when certain competitive activities need to be explicitly permitted
6. Dispute Resolution: Include when specific dispute resolution procedures (mediation/arbitration) are preferred over court proceedings
7. Garden Leave: Include for senior vendors where a paid non-compete period is required
1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas where restrictions apply
2. Schedule 2 - Competitive Business Activities: Detailed description of prohibited business activities and competitors
3. Schedule 3 - Confidential Information: Specific list of confidential information and trade secrets covered
4. Schedule 4 - Key Customers and Suppliers: List of specific customers and suppliers covered by non-solicitation provisions
5. Appendix A - Consideration Details: Detailed breakdown of any financial or other consideration provided
6. Appendix B - Compliance Certificate: Template certificate for vendor to periodically confirm compliance with restrictions
Authors
Technology & Software
Professional Services
Manufacturing
Healthcare & Pharmaceuticals
Financial Services
Retail & E-commerce
Telecommunications
Research & Development
Consulting
Industrial Services
Engineering
Defense Contracting
Legal
Procurement
Vendor Management
Supply Chain
Compliance
Risk Management
Operations
Commercial
Strategic Sourcing
Contract Administration
Chief Procurement Officer
Procurement Manager
Vendor Relations Manager
Legal Counsel
Contract Manager
Supply Chain Director
Chief Legal Officer
Commercial Director
Business Development Manager
Operations Director
Chief Technology Officer
Risk Management Officer
Compliance Manager
Strategic Sourcing Manager
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