The Subcontractor Confidentiality Agreement is essential in business relationships where a contractor needs to share sensitive information with subcontractors while maintaining control over its use and disclosure. This document, designed for use in India and compliant with Indian law, becomes necessary when engaging subcontractors who will have access to proprietary information, trade secrets, technical data, client information, or other confidential business information. It establishes clear obligations for information protection, permitted uses, and security measures, while providing remedies under Indian jurisdiction in case of breach. The agreement is particularly crucial in today's digital economy where information sharing is extensive and data protection is paramount. It should be implemented before any confidential information is shared with the subcontractor and remains effective throughout the business relationship and beyond.
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1. Parties: Identification of the main contractor and subcontractor, including full legal names, addresses, and company registration details
2. Background: Context of the relationship between parties and purpose of the agreement
3. Definitions: Clear definitions of key terms including 'Confidential Information', 'Trade Secrets', 'Permitted Purpose', 'Representatives', and other relevant terms
4. Scope of Confidential Information: Detailed description of what constitutes confidential information under the agreement
5. Confidentiality Obligations: Core obligations regarding the protection and non-disclosure of confidential information
6. Permitted Uses and Disclosures: Specific circumstances under which confidential information may be used or disclosed
7. Security Measures: Required security measures for protecting confidential information
8. Return or Destruction of Confidential Information: Procedures for handling confidential information upon termination or request
9. Term and Survival: Duration of the agreement and which obligations survive termination
10. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
11. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments
1. Data Protection Compliance: Specific provisions for handling personal data, recommended when confidential information includes personal data
2. Intellectual Property Rights: Specific provisions regarding IP ownership and licenses, needed when confidential information includes IP
3. Non-Solicitation: Restrictions on hiring or soliciting employees, useful when subcontractor will have access to employee information
4. Audit Rights: Right to audit subcontractor's compliance, recommended for high-risk or regulated industries
5. Insurance Requirements: Specific insurance obligations, important for high-value contracts or regulated industries
6. Force Majeure: Provisions for unforeseen circumstances, recommended for long-term agreements
1. Schedule 1 - Description of Services: Detailed description of services being provided that require access to confidential information
2. Schedule 2 - Categories of Confidential Information: Detailed list of types of confidential information covered
3. Schedule 3 - Authorized Representatives: List of personnel authorized to access confidential information
4. Schedule 4 - Security Protocols: Detailed security measures and protocols to be followed
5. Appendix A - Form of Acknowledgment: Template for individual acknowledgment of confidentiality obligations by subcontractor's employees
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