The Non-Compete And Independent Contractor Agreement is essential for businesses operating in Saudi Arabia who engage external service providers while requiring protection against competitive activities. This document is particularly relevant in the context of Saudi Arabia's evolving business landscape and must comply with both Saudi Labor Law and Competition Law, as well as Sharia principles. It is commonly used when engaging skilled professionals or specialized service providers who will have access to sensitive business information or valuable client relationships. The agreement carefully balances the need to establish a clear independent contractor relationship while implementing enforceable non-compete restrictions. It addresses key concerns such as contractor status, service scope, compensation, intellectual property rights, and competition restrictions, while ensuring alignment with Saudi legal requirements and business practices.
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1. Parties: Identification of the contracting parties, including full legal names, addresses, and commercial registration details
2. Background: Context of the agreement, nature of the business relationship, and confirmation of independent contractor status
3. Definitions: Key terms used throughout the agreement, including specific Saudi legal terminology
4. Scope of Services: Detailed description of services to be provided by the contractor
5. Independent Contractor Status: Clear establishment of independent contractor relationship and disclaimer of employment relationship
6. Term and Termination: Duration of the agreement and conditions for termination
7. Compensation and Payment Terms: Fee structure, payment schedule, and currency specifications
8. Non-Compete Provisions: Scope, duration, and geographical limitations of non-compete restrictions
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property Rights: Ownership and usage rights of intellectual property
11. Compliance with Laws: Obligation to comply with Saudi laws and regulations
12. Representations and Warranties: Statements of fact and promises by both parties
13. Indemnification: Protection against losses and liability provisions
14. Dispute Resolution: Mechanism for resolving disputes under Saudi law
15. Governing Law: Specification of Saudi law as governing law
16. General Provisions: Standard clauses including notices, amendments, and severability
1. Insurance Requirements: Specific insurance coverage requirements, used when services involve higher risk activities
2. Equipment and Resources: Provisions regarding tools and resources, used when specific equipment is required for service delivery
3. Training and Support: Requirements for training or support, used when service delivery requires specific knowledge transfer
4. Performance Metrics: Specific performance standards and KPIs, used for complex service arrangements
5. Subcontracting: Terms for engaging subcontractors, used when subcontracting may be necessary
6. Data Protection: Specific data handling requirements, used when personal or sensitive data is involved
7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements
8. Non-Solicitation: Additional restrictions on soliciting employees or clients, used when there's specific risk of poaching
9. Zakat and Tax: Tax-related provisions, used when tax implications need specific addressing
10. Shariah Compliance: Specific provisions ensuring Shariah compliance, used when required by the nature of services
1. Schedule 1 - Service Description: Detailed specification of services to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment terms, and billing procedures
3. Schedule 3 - Performance Standards: Specific metrics and standards for service delivery
4. Schedule 4 - Restricted Activities: Detailed list of activities covered by non-compete provisions
5. Schedule 5 - Restricted Territory: Geographical scope of non-compete restrictions
6. Schedule 6 - Key Personnel: List of key individuals involved in service delivery
7. Appendix A - Required Qualifications: Specific qualifications or certifications required
8. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements
9. Appendix C - Form of Invoice: Template for invoicing and payment documentation
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