The Non-Compete Non-Disclosure Agreement is essential for businesses operating in Saudi Arabia who need to protect their confidential information and prevent competitive activities by employees, contractors, or business partners. This document is particularly relevant in the context of Saudi Arabia's rapidly evolving business environment under Vision 2030, where protection of intellectual property and trade secrets is increasingly important. The agreement must comply with Saudi Labor Law, which requires non-compete provisions to be reasonable in duration, geographic scope, and nature of restricted activities. It typically includes detailed definitions of confidential information, specific competitive restrictions, and enforcement mechanisms that are compatible with both Saudi civil law and Shariah principles. This document is commonly used during employee onboarding, business partnerships, or when engaging consultants and contractors who will have access to sensitive information.
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1. Parties: Identification of the contracting parties, including full legal names, addresses, and commercial registration details as required under Saudi law
2. Background: Context of the agreement, relationship between parties, and general purpose of the agreement
3. Definitions: Detailed definitions of key terms, especially 'Confidential Information', 'Competing Business', and 'Restricted Territory'
4. Confidentiality Obligations: Detailed provisions regarding the protection, use, and non-disclosure of confidential information
5. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographic limitations as per Saudi Labor Law
6. Duration and Term: Period of effectiveness for both confidentiality and non-compete obligations
7. Return of Confidential Information: Procedures for returning or destroying confidential information upon agreement termination
8. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including legal requirements
9. Security Measures: Required procedures for protecting confidential information
10. Breach and Remedies: Consequences of breach and available remedies under Saudi law
11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant court jurisdiction
12. General Provisions: Standard clauses including severability, amendments, and notices
1. Shariah Compliance: Explicit statement of Shariah compliance, recommended for agreements involving Islamic financial institutions
2. International Transfers: Provisions for international transfer of confidential information, needed if parties operate across borders
3. Training and Compliance: Provisions for training requirements and compliance programs, useful for complex organizational relationships
4. Third Party Rights: Provisions regarding rights of third parties, needed if third party beneficiaries are involved
5. Insurance Requirements: Obligations to maintain specific insurance coverage, relevant for high-risk information or activities
6. Arbitration: Alternative dispute resolution procedures, recommended for international parties
1. Schedule 1 - Specified Confidential Information: Detailed list of specific confidential information covered by the agreement
2. Schedule 2 - Restricted Territory: Detailed description and/or maps of geographic areas covered by non-compete provisions
3. Schedule 3 - Competing Business Activities: Specific description of prohibited competitive activities
4. Schedule 4 - Authorized Representatives: List of individuals authorized to receive confidential information
5. Schedule 5 - Security Protocols: Detailed security measures and procedures for handling confidential information
6. Appendix A - Form of Acknowledgment: Template for employees/contractors to acknowledge receipt and understanding of obligations
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