The Non-Compete Non-Circumvent Agreement is a crucial legal instrument in Saudi Arabian business operations, designed to protect legitimate business interests, trade secrets, and commercial relationships. This document is typically used when engaging with employees, business partners, or consultants who will have access to sensitive information or valuable business relationships. The agreement, governed by Saudi Arabian law and compliant with Sharia principles, combines two key protective elements: preventing competitive activities and prohibiting direct engagement with protected business relationships. It must include specific limitations on duration and geographical scope as required by Saudi Labor Law, while ensuring enforceability through clear definition of restricted activities and relationships.
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1. Parties: Identification of all contracting parties, including full legal names, addresses, and registration details
2. Background: Context of the agreement, existing business relationship, and purpose of the restrictions
3. Definitions: Detailed definitions of key terms including Confidential Information, Restricted Business, Territory, and Restricted Period
4. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographical limitations
5. Non-Circumvention Obligations: Prohibition on bypassing or circumventing the other party in business dealings and relationships
6. Duration and Territory: Explicit timeframe and geographical scope of the restrictions
7. Confidentiality Obligations: Requirements regarding the protection and non-disclosure of confidential information
8. Permitted Activities: Clear outline of activities that are explicitly allowed despite the restrictions
9. Consideration: Details of any payment or consideration provided in exchange for the restrictions
10. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
11. Governing Law and Jurisdiction: Specification of Saudi Arabian law as governing law and relevant jurisdiction
12. General Provisions: Standard clauses including severability, entire agreement, and amendments
1. Assignment and Succession: Include when the agreement needs to bind successors or if assignment rights need to be addressed
2. Specific Industry Restrictions: Add for agreements in regulated industries or sectors with specific compliance requirements
3. Third Party Rights: Include when the agreement affects or benefits specific third parties
4. Force Majeure: Add when long-term restrictions need force majeure provisions
5. Islamic Finance Compliance: Include when the agreement involves financial transactions that must comply with Islamic finance principles
6. Training and Trade Secrets: Add when the agreement relates to specific training provided or trade secrets shared
7. Post-Termination Obligations: Include when specific obligations continue after the main agreement terminates
1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by restrictions
2. Schedule 2 - Restricted Business Activities: Comprehensive list of prohibited business activities and sectors
3. Schedule 3 - Protected Relationships: List of specific clients, suppliers, or business relationships protected by non-circumvention
4. Schedule 4 - Consideration Details: Breakdown of any financial consideration or payment terms
5. Appendix A - Confidential Information: Detailed categorization of information considered confidential
6. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements
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