A Supplier NDA is essential when businesses need to share sensitive information with potential or existing suppliers while maintaining confidentiality. This document type is commonly used in the United States when companies need to protect proprietary information, trade secrets, or sensitive business data during supplier negotiations, onboarding, or ongoing relationships. The agreement typically includes specific provisions for information handling, security requirements, and breach remedies, all governed by U.S. federal and state laws. Organizations should implement a Supplier NDA before sharing any confidential information during supplier evaluation, contract negotiations, or operational collaboration.
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1. Parties: Identification of the disclosing and receiving parties, including full legal names and addresses
2. Background: Context of the relationship and purpose of sharing confidential information between supplier and company
3. Definitions: Key terms including Confidential Information, Trade Secrets, Representatives, Permitted Purpose
4. Confidentiality Obligations: Core obligations regarding use, protection, and non-disclosure of confidential information
5. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to representatives and legal requirements
6. Protection Measures: Security measures required to protect confidential information
7. Term and Termination: Duration of the agreement and circumstances for termination
8. Return or Destruction: Requirements for returning or destroying confidential information upon termination
9. Remedies: Legal remedies available in case of breach, including injunctive relief
10. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement
1. Non-Solicitation: Restrictions on hiring or soliciting employees or customers, used when protecting against poaching is a concern
2. Data Privacy Compliance: Specific obligations regarding personal data protection, required when personal data will be shared
3. Export Control: Compliance with export control regulations, needed when technical data subject to export controls may be shared
4. Intellectual Property Rights: Provisions clarifying ownership and rights in any IP that may be disclosed, used when IP is likely to be shared
5. Residual Knowledge: Provisions addressing use of general knowledge retained in memory, used in technology sector agreements
1. Schedule 1 - Description of Confidential Information: Detailed list or categories of confidential information covered by the agreement
2. Schedule 2 - Authorized Representatives: List of individuals or roles authorized to receive and handle confidential information
3. Schedule 3 - Security Requirements: Specific security protocols and standards for handling confidential information
4. Schedule 4 - Approved Subcontractors: List of pre-approved subcontractors who may receive confidential information if applicable
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