Supplier Non Compete Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Supplier Non Compete Agreement

"I need a Supplier Non-Compete Agreement for a UAE-based technology manufacturing company to prevent our key component supplier from working with competitors or sharing our proprietary manufacturing processes, with restrictions covering the GCC region for 2 years after contract termination."

Document background
The Supplier Non-Compete Agreement is essential for businesses operating in the UAE who need to protect their competitive advantages and confidential information when engaging with suppliers. This document is particularly crucial when suppliers gain access to sensitive business information, manufacturing processes, or customer data through their business relationship. It must comply with UAE Federal Law No. 4 of 2012 (Competition Law) and related commercial regulations while establishing reasonable restrictions on the supplier's activities. The agreement typically includes specific provisions about geographical scope, duration, and prohibited activities, all structured to be enforceable under UAE law. It's commonly used when initiating new supplier relationships or updating existing arrangements where competitive risks have been identified.
Suggested Sections

1. Parties: Identifies and provides full details of the contracting parties

2. Background: Sets out the context 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', etc.

4. Non-Compete Obligations: Details the specific competitive activities the supplier is prohibited from engaging in

5. Duration and Territory: Specifies the time period and geographical area where the restrictions apply

6. Confidentiality Obligations: Outlines the supplier's obligations regarding confidential information

7. Consideration: Specifies the consideration provided in exchange for the non-compete obligations

8. Acknowledgments: Supplier's acknowledgment of the reasonableness of restrictions

9. Remedies: Details the remedies available in case of breach, including injunctive relief

10. General Provisions: Standard contract clauses including governing law, notices, and entire agreement

Optional Sections

1. Non-Solicitation: Additional restrictions on soliciting customers or employees, used when supplier has significant customer contact

2. Intellectual Property: Additional IP provisions when supplier has access to or develops IP

3. Assignment and Subcontracting: Used when there's a need to control the supplier's ability to transfer obligations

4. Audit Rights: Included when monitoring of compliance is necessary

5. Post-Termination Obligations: Specific obligations that survive the end of the main supplier relationship

6. Force Majeure: Added when long-term restrictions need force majeure protection

7. Parent Company Guarantee: Used when additional security is required from supplier's parent company

Suggested Schedules

1. Schedule 1 - Restricted Business Activities: Detailed list of specific business activities covered by non-compete

2. Schedule 2 - Territorial Scope: Detailed description or maps of geographical areas covered

3. Schedule 3 - Competitive Products/Services: Specific products or services subject to restrictions

4. Schedule 4 - Consideration Details: Breakdown of any financial or other consideration provided

5. Appendix A - Confidential Information: Detailed list of types of confidential information covered

6. Appendix B - Related Companies: List of affiliated companies covered by the agreement

Authors

Alex Denne

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

Relevant Industries

Manufacturing

Technology

Professional Services

Healthcare

Pharmaceuticals

Telecommunications

Energy

Construction

Retail

Automotive

Aerospace

Defense

Financial Services

Consumer Goods

Relevant Teams

Legal

Procurement

Supply Chain

Commercial

Operations

Risk & Compliance

Vendor Management

Business Development

Corporate Affairs

Contract Administration

Relevant Roles

Chief Procurement Officer

Legal Counsel

Procurement Manager

Supply Chain Director

Commercial Director

Contracts Manager

Vendor Relations Manager

Chief Legal Officer

Business Development Manager

Operations Director

Risk Manager

Compliance Officer

General Counsel

Sourcing Manager

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

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