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Independent Contractor Non Disclosure Agreement
1. Governing Law, Jurisdiction & Venue
GOVERNING LAW; JURISDICTION; VENUE
(a) Governing Law. This Agreement and any dispute arising out of or related to it — including its formation, interpretation, performance, breach, or termination — will be governed by and construed in accordance with the laws of the State of , without regard to its conflict-of-law provisions.
(b) Consent to Jurisdiction. Each party irrevocably submits to the exclusive personal jurisdiction of the state and federal courts located in County, for any action or proceeding arising out of or relating to this Agreement that is not subject to arbitration under the Dispute Resolution clause (if any).
(c) Venue. Each party waives any objection to the laying of venue in the courts identified in Section (b), and waives any claim that such courts are an inconvenient forum.
(d) Service of Process. Service of process in any such action may be made by any method authorized by the applicable court rules or by mailing a copy of the summons and complaint by registered or certified mail, return receipt requested, to the party's address set forth in this Agreement.
(e) Prevailing Party. In any dispute arising under this Agreement, the prevailing party is entitled to recover its reasonable attorneys' fees and costs from the non-prevailing party, unless the parties have agreed to a different allocation in the Dispute Resolution clause.
2. Confidentiality / Non-Disclosure Obligation
CONFIDENTIALITY
(a) Definition. "Confidential Information" means all non-public information disclosed by one party ("Discloser") to the other ("Recipient") in connection with this Agreement that is designated as confidential at the time of disclosure, or that a reasonable person would understand to be confidential given the nature of the information and circumstances of disclosure. Without limiting the foregoing, Confidential Information includes: business plans, financial data, pricing, fee structures, customer and prospect lists, proprietary methodologies, software, technical specifications, and personnel information.
(b) Exclusions. Confidential Information does not include information that: (i) is or becomes publicly available through no fault of Recipient; (ii) Recipient already knew before receiving it from Discloser, as shown by written records; (iii) Recipient independently develops without use of or reference to the Confidential Information; or (iv) Recipient rightfully receives from a third party without restriction.
(c) Obligations. Recipient will: (i) use Discloser's Confidential Information solely to perform or receive the Services under this Agreement; (ii) disclose it only to its employees, contractors, and advisors who have a need to know and who are bound by confidentiality obligations no less protective than this clause; and (iii) protect it with at least the same degree of care it uses for its own confidential information of similar sensitivity, but in no event less than reasonable care.
(d) Compelled Disclosure. Recipient may disclose Confidential Information if required by law, court order, or regulatory authority, provided that Recipient: (i) gives Discloser prompt prior written notice to the extent legally permitted; (ii) cooperates with Discloser in seeking a protective order or other appropriate relief; and (iii) discloses only what is legally required.
(e) Trade Secrets. Obligations with respect to information that constitutes a trade secret under applicable law (including the Defend Trade Secrets Act, 18 U.S.C. § 1836) will continue for as long as such information remains a trade secret, notwithstanding any shorter survival period stated below.
(f) Subcontractors. may share 's Confidential Information with approved subcontractors solely to the extent necessary for them to perform work under this Agreement, provided each subcontractor is bound by written confidentiality obligations at least as protective as this clause.
(g) Return or Destruction. Upon termination or expiration of this Agreement, or upon Discloser's written request, Recipient will promptly return or securely destroy all of Discloser's Confidential Information (including copies) and certify such return or destruction in writing, except as required by law or for legal-hold purposes.
(h) Survival. This Section survives termination or expiration of this Agreement for a period of 3 years, except as provided in Section (e).
DISPUTE RESOLUTION
(a) Good-Faith Negotiation. Before initiating any formal dispute proceeding, the parties will attempt to resolve any dispute, controversy, or claim arising out of or relating to this Agreement ("Dispute") through good-faith negotiation. Either party may initiate this step by delivering written notice to the other describing the Dispute in reasonable detail ("Dispute Notice"). Senior representatives of each party with authority to resolve the Dispute will meet (in person, by phone, or by videoconference) within 10 business days of the Dispute Notice and attempt to resolve the matter in good faith for a period of 30 business days from the date of the Dispute Notice (or longer, if agreed in writing).
(b) Mediation. If the Dispute is not resolved through negotiation within the timeframe in Section (a), either party may submit it to non-binding mediation administered by (or, if the parties cannot agree on a provider, by the American Arbitration Association under its Commercial Mediation Procedures). The mediation will take place in , . The parties will share mediator fees equally. Each party will bear its own legal fees for the mediation.
(c) Binding Arbitration. If the Dispute is not resolved through mediation within 60 days after the appointment of the mediator, either party may demand binding arbitration. Arbitration will be administered by under its then-current , before a single arbitrator. The arbitration will take place in , . The arbitrator's decision will be final and binding and may be entered as a judgment in any court of competent jurisdiction. The parties agree that the arbitration — including its existence, proceedings, and any award — is confidential.
(d) Exceptions to Arbitration. Either party may seek emergency injunctive or other equitable relief from a court of competent jurisdiction without first completing the negotiation or mediation steps, to prevent irreparable harm — including to protect Confidential Information or intellectual property — pending the outcome of arbitration.
(e) Small Claims. Either party may bring a Dispute in small claims court if the amount in controversy falls within that court's jurisdictional limit.
(f) Class Action Waiver. Each party waives any right to bring or participate in any class action, class arbitration, or representative proceeding relating to this Agreement.
(g) Governing Law for Arbitration. The arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1–16) and, where not preempted, by the laws of .
4. Assignment
4.1 General Restriction. Neither Party may assign, delegate, or transfer any of its rights or obligations under this Agreement, in whole or in part, without the other Party's prior written consent, which will not be unreasonably withheld or delayed.
4.2 M&A Exception. Notwithstanding Section 4.1, either Party may assign this Agreement without consent in connection with a merger, acquisition, change of control, or sale of all or substantially all of the assets to which this Agreement relates, provided that: (a) the assignee assumes all obligations of the assigning Party under this Agreement; and (b) the assigning Party provides the other Party written notice within thirty (30) days of the assignment.
4.3 Void Assignment. Any purported assignment in violation of this Section is void.
4.4 Binding Effect. This Agreement is binding upon and inures to the benefit of the Parties and their permitted successors and assigns.
5. Notices
5.1 Form. All notices, requests, demands, consents, and other communications required or permitted under this Agreement ("Notices") must be in writing.
5.2 Delivery Methods. Notices may be delivered by: (a) personal delivery; (b) nationally recognized overnight courier (e.g., FedEx, UPS); (c) certified or registered mail, return receipt requested, postage prepaid; or (d) email to the address specified below, provided that the sender retains proof of transmission and does not receive an automated bounce or delivery-failure notification within twenty-four (24) hours.
5.3 Effectiveness. Notices are effective: (a) upon personal delivery; (b) one (1) business day after deposit with overnight courier; (c) three (3) business days after deposit in the mail; or (d) on the day of email transmission if sent by 5:00 PM recipient's local time on a business day, or on the next business day if sent after 5:00 PM or on a non-business day.
5.4 Addresses.
To Provider: , , Email:
To Customer: , , Email:
Either Party may change its notice address by providing written notice to the other in accordance with this Section.
6. Severability
If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable under applicable law, that provision will be: (a) modified to the minimum extent necessary to make it valid, legal, and enforceable while preserving the Parties' original intent; or (b) if modification is not possible, severed from this Agreement. The validity, legality, and enforceability of the remaining provisions will not in any way be affected or impaired. The Parties agree to negotiate in good faith a replacement provision that, to the greatest extent possible, achieves the intended commercial purpose of the severed provision.
7. Entire Agreement (Integration)
7.1 Integration. This Agreement, together with all SOWs, Change Orders, and exhibits executed hereunder, constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, negotiations, representations, warranties, and understandings, whether written or oral, relating to the same subject matter.
7.2 No Oral Modifications. No oral statement, prior course of dealing, trade usage, or conduct will be used to supplement, interpret, or contradict the written terms of this Agreement.
7.3 Purchase Orders. Any terms set forth in Customer's purchase orders, vendor registration forms, or similar documents are of no force or effect and do not modify this Agreement unless expressly incorporated into a signed SOW or Change Order.
7.4 Results Representations. Customer acknowledges that no employee, agent, or representative of Provider has authority to guarantee specific results or outcomes, and that any such representation made outside this Agreement is not binding on Provider.
8. Amendments & Waiver
8.1 Amendments. This Agreement may not be amended, modified, or supplemented except by a written instrument signed by authorized representatives of both Parties.
8.2 No Waiver. No failure or delay by either Party in exercising any right, remedy, power, or privilege under this Agreement operates as a waiver thereof. No single or partial exercise of any right, remedy, power, or privilege precludes any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.
8.3 Written Waivers Only. Any waiver of a provision of this Agreement must be in writing and signed by the waiving Party to be effective. A written waiver of any particular breach or right is effective only for the specific instance and purpose for which it was given.
9. Electronic Signature & Counterparts
9.1 Electronic Signatures. This Agreement and any SOW or amendment may be signed by electronic signature, including signatures created through or any other electronic signature service compliant with the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), 15 U.S.C. § 7001 et seq., and the Uniform Electronic Transactions Act (UETA) as enacted in the applicable jurisdiction. Electronic signatures have the same legal effect as original handwritten signatures.
9.2 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will constitute one and the same instrument. Delivery of an executed counterpart by electronic transmission (including PDF or electronic signature platform delivery) is equally effective as delivery of a manually executed counterpart.
10. No Third-Party Beneficiaries
This Agreement is entered into for the sole benefit of the Parties and their permitted successors and assigns. Nothing in this Agreement, express or implied, is intended to or will create any rights, remedies, or obligations in or for any third party, including any employee, subcontractor, customer, or affiliate of either Party.
11. Data Protection & Privacy (General)
11.1 Roles. To the extent Provider processes personal data on behalf of Customer in connection with the Services, Customer is the data controller and Provider is the data processor (or equivalent roles under applicable law, including "business" / "service provider" under CCPA/CPRA and "controller" / "processor" under applicable U.S. state privacy laws).
11.2 Processing Instructions. Provider will process personal data only on Customer's documented instructions and for the purposes described in the applicable SOW: . Provider will not process personal data for any other purpose, including for Provider's own commercial benefit or to train AI or machine learning models.
11.3 Subject Matter and Duration. The subject matter and duration of processing, the nature and purpose of processing, the types of personal data processed, and the categories of data subjects are set out in Schedule DPA-1 attached hereto. Processing under this Agreement shall not exceed the term of this Agreement plus any post-termination data-retention period required by applicable law.
11.4 Confidentiality. Provider will ensure that all persons authorized to process personal data are bound by enforceable confidentiality obligations and are trained on applicable privacy requirements.
11.5 Security. Provider will implement and maintain technical and organizational measures appropriate to the risk of the processing, as further described in Schedule DPA-2. Provider will notify Customer without undue delay, and in any event within 24 hours, upon becoming aware of a personal data breach.
11.6 Sub-processors. Provider will not engage any sub-processor to process personal data without Customer's prior written authorization. The current list of approved sub-processors is set forth in Schedule DPA-3. Provider will (a) give Customer at least 30 days' prior written notice of any intended addition or replacement of a sub-processor; (b) impose data protection obligations on each sub-processor equivalent to those in this clause; and (c) remain fully liable to Customer for the acts and omissions of any sub-processor.
11.7 Data Subject Rights. Provider will, taking into account the nature of processing, assist Customer by appropriate technical and organizational measures in fulfilling Customer's obligations to respond to data subject rights requests (access, rectification, erasure, portability, objection, restriction) within the timeframes required by applicable law. Provider will forward any data subject request received directly by Provider to Customer within 2 business days.
11.8 Audit Rights. Upon 14 days' written notice, Customer may audit Provider's data-processing activities and facilities, or instruct Provider to submit to an audit by a mutually agreed third-party auditor, no more than once per calendar year unless a personal data breach has occurred.
11.9 Return and Deletion. Upon expiration or termination of this Agreement, Provider will, at Customer's election, either return all personal data to Customer in a machine-readable format or securely delete it, within 30 days, and certify in writing that deletion is complete. Provider may retain personal data to the extent required by applicable law, subject to confidentiality obligations.
11.10 U.S. State Privacy Laws. To the extent Provider processes personal data subject to CCPA/CPRA, Virginia CDPA, Colorado CPA, Texas TDPSA, or other applicable U.S. state privacy laws, Provider certifies that it will not: (a) sell or share personal data; (b) retain, use, or disclose personal data outside the direct business relationship with Customer; or (c) combine personal data with data from other sources except as permitted under applicable law. Provider will cooperate with Customer to satisfy any opt-out, deletion, or correction requests required under such laws within the legally mandated response periods.
11.11 GDPR Article 28 Compliance. This clause, together with Schedules DPA-1 through DPA-3, constitutes a Data Processing Agreement satisfying the requirements of GDPR Article 28 and the UK GDPR equivalent. In the event of a conflict between this clause and any other provision of this Agreement with respect to personal data processing, this clause controls.
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Keep 1099 Contractor Engagements Confidential From Day One
When you bring on a contractor or step into a project as a subcontractor, information flows both ways fast: credentials, client names, pricing structures, internal processes. A mutual NDA makes the confidentiality obligation explicit before any of that changes hands.
Fill in the parties, the purpose of the disclosure, and the term in years. ContractMaker produces a finished, signed-ready document you can send by email or through the client portal. No subscription required to get started.
What Your Independent Contractor NDA Covers
The generator collects every field needed for a clear, enforceable agreement.
Party A and Party B names and addresses
Effective date of the agreement
Purpose of the disclosure, such as evaluating a project or beginning a subcontracting engagement
Confidentiality term in years, so both sides know exactly when the obligation expires
Standard exclusions covering information already public or independently developed by either party
Governing law, so any dispute is handled in the right jurisdiction
Signature lines for both the hiring party and the contractor
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Is an independent contractor non disclosure agreement legally binding?
Once both parties sign, a clear written NDA is generally enforceable. ContractMaker is a document tool, not legal advice. For contractor relationships involving trade secrets or significant IP, have a lawyer review the document before it is signed.
Does an NDA work differently for 1099 contractors than for employees?
Yes. Contractors are not covered by employment agreements or company handbooks, so a separate NDA is the only way to establish a confidentiality obligation. This mutual NDA places the same obligation on both the hiring firm and the contractor, which matters when information flows in both directions.
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