This Non Disclosure Non Compete Agreement is essential for protecting business interests and confidential information in Indian commercial relationships. It is particularly relevant when parties share sensitive information or when employees/contractors have access to valuable business knowledge. The agreement addresses both confidentiality obligations and competitive restrictions, carefully drafted to comply with Indian law, particularly Section 27 of the Indian Contract Act which generally invalidates restraints on trade. While non-disclosure provisions are broadly enforceable, non-compete clauses require careful structuring to be effective during the employment/engagement period and are typically unenforceable post-termination unless related to sale of goodwill or business interests. The document is commonly used in employment, consulting, partnership, and business collaboration contexts where protection of trade secrets and business interests is paramount.
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1. Parties: Identifies and provides full details of all parties to the agreement
2. Background: Sets out the context and purpose of the agreement, including the relationship between the parties
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Competitive Activities', and 'Territory'
4. Confidentiality Obligations: Details the obligations regarding confidential information, including use, disclosure, and protection requirements
5. Non-Compete Obligations: Specifies restrictions on competitive activities, carefully drafted to comply with Indian Contract Act Section 27
6. Term and Survival: Specifies the duration of the agreement and which provisions survive termination
7. Return of Confidential Information: Procedures for returning or destroying confidential information upon request or termination
8. Intellectual Property Rights: Clarifies ownership and rights regarding intellectual property and confidential information
9. Breach and Remedies: Specifies consequences of breach and available remedies, including injunctive relief
10. Governing Law and Jurisdiction: Specifies Indian law as governing law and determines jurisdiction for disputes
11. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers - used when business relationships need specific protection
2. Assignment and Delegation: Rules for transferring rights and obligations - important for corporate agreements or when M&A is contemplated
3. Dispute Resolution: Detailed arbitration or mediation procedures - used when parties prefer alternative dispute resolution
4. Information Security Requirements: Specific technical requirements for protecting digital information - used when dealing with sensitive electronic data
5. Export Control: Compliance with export control laws - used when dealing with regulated technologies or international transfers
6. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID for long-term agreements
7. Training and Compliance: Requirements for training employees on confidentiality - used in corporate or complex arrangements
1. Schedule 1 - Confidential Information: Detailed list or categories of information considered confidential
2. Schedule 2 - Restricted Activities: Specific description of prohibited competitive activities
3. Schedule 3 - Restricted Territory: Geographic scope of non-compete restrictions
4. Schedule 4 - Authorized Representatives: List of persons authorized to receive or handle confidential information
5. Schedule 5 - Security Protocols: Specific procedures for handling and protecting confidential information
6. Appendix A - Form of Acknowledgment: Template for employees or subcontractors to acknowledge agreement terms
7. Appendix B - Exit Certificate: Template for confirming compliance upon termination of relationship
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