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Supplier Non Compete Agreement

Supplier Non Compete Agreement Template for Denmark

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Supplier Non Compete Agreement

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Document background
The Supplier Non-Compete Agreement is a crucial document used when a company needs to protect its business interests from potential competition from its suppliers. This agreement becomes particularly important in situations where suppliers gain access to sensitive information, proprietary processes, or strategic business knowledge during the course of their relationship with the company. Governed by Danish law and compliant with EU regulations, the document sets out specific restrictions on the supplier's ability to compete, including detailed provisions about geographical scope, duration, and prohibited activities. It's essential for businesses operating in Denmark who want to maintain their competitive advantage while ensuring their supplier agreements remain enforceable under local legislation. The agreement typically includes consideration provisions to ensure validity under Danish law and detailed schedules defining the scope of restrictions.
Suggested Sections

1. Parties: Identification of the contracting parties - the company and the supplier

2. Background: Context of the agreement, including the nature of the supplier relationship and reason for non-compete provisions

3. Definitions: Key terms used in the agreement, including 'Competitive Business', 'Confidential Information', 'Territory', and 'Restricted Period'

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas

5. Duration: Time period for which the non-compete obligations will remain in effect

6. Geographical Scope: Definition of the territorial boundaries where the non-compete restrictions apply

7. Consideration: Financial or other compensation provided in exchange for the non-compete obligations

8. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information

9. Breach and Remedies: Consequences of violating the agreement and available legal remedies

10. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for dispute resolution

Optional Sections

1. Post-Termination Obligations: Additional obligations that continue after the end of the supplier relationship, used when there are specific post-relationship concerns

2. Industry-Specific Restrictions: Specific provisions related to particular industry requirements or regulations, included when the industry has unique competitive concerns

3. Customer Non-Solicitation: Provisions preventing the supplier from soliciting customers, included when customer relationships are particularly valuable

4. Employee Non-Solicitation: Provisions preventing the supplier from hiring company employees, used when employee poaching is a concern

5. Compliance with Competition Laws: Specific provisions ensuring compliance with EU and Danish competition laws, included for larger suppliers or cross-border relationships

6. Assignment and Transfer: Provisions regarding the transfer of rights and obligations, included when relevant to the supplier's business structure

Suggested Schedules

1. Schedule 1: Restricted Activities: Detailed list of specific activities, products, or services that the supplier is prohibited from engaging in

2. Schedule 2: Restricted Territory: Detailed map or list of geographical areas where restrictions apply

3. Schedule 3: Competitor List: List of specific competitors or competing businesses covered by the agreement

4. Schedule 4: Consideration Details: Detailed breakdown of any compensation or consideration provided for the non-compete obligations

5. Schedule 5: Confidential Information: Detailed description of the types of confidential information covered by the agreement

Authors

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Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Competition Act (Konkurrenceloven): Primary legislation governing competition law in Denmark, which regulates agreements that may restrict competition. Relevant for ensuring the non-compete provisions are not overly restrictive and comply with competition law principles.
Danish Contracts Act (Aftaleloven): Provides the legal framework for contract formation, validity, and enforcement in Denmark. Essential for ensuring the agreement meets basic contractual requirements and is legally binding.
EU Competition Law (Articles 101 and 102 TFEU): European Union regulations on competition that apply in Denmark as an EU member state. Relevant for ensuring the agreement doesn't violate EU-wide competition rules, particularly if the supplier operates across multiple EU countries.
Danish Marketing Practices Act (Markedsføringsloven): Regulates market behavior and contains provisions about trade secrets and fair competition. Relevant for defining and protecting confidential information and trade secrets in the supplier relationship.
Danish Trade Secrets Act (Lov om forretningshemmeligheder): Implements the EU Trade Secrets Directive and provides protection for trade secrets. Important for defining and protecting confidential information in the supplier relationship.
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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