Signing of non-solicitation agreement with Vendor - Can I be taken to court?

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charanjit78

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Hi Experts,

Please help me. I am in a desperate situation.
I am working as a consultant in IT. Recently, my contract with present company was over and I was looking for a new project. One of these vendors (let's say XYZ) had an opportunity at Client (let's say ABC). Client liked my resume and asked for a face to face. Before giving me the contact details of the client, Vendor XYZ asked me to sign a NCA agreement. Since I was desprerate to find a job, I signed it. Now, the client interview went fine and they are willing to take me. But there are some rate negotiations going on between Client and Vendor. I asked Vendor 50$/hr. Vendor told me that Client is willing to give only 35-40$ and they are trying to take only 5$ markup. I gave a call directly to Client and I came to know that Client is willing to give 55$ but Vendor wants to take huge markup(15-20$) in between. Because of this deal is not going through. Now, I found the same position thro another Vendor. Since, client has already interviewed me, I think there is a good chance that I can go thro another Vendor and work for Client.
I would like to know that if I work for Client from different Vendor, can XYZ challenge me in court based on NCA I signed with XYZ? I noticed that defintion of Client and contractor in the NCA is not correct. I think I should be safe but want opinion of experts. Here is the NCA -

Non-Solicitation Agreement

This Agreement is made this XX day of Aug 2011 between XYZ Technology Group hereinafter referred to as Contractor and Peter hereinafter referred to Subcontractor / Consultant.

WHEREAS: Subcontractor /Consultant is interested in the opportunity to present his Profile to XYZ Technology Client i.e. through ABC in Jersey City, NJ.

NOW THEREFORE the Two Parties: Subcontractor / Consultant and Contractor agree as follows:

1. Contractor will arrange for interviews with its Client for the Subcontractor / Consultant.

2. Subcontractor / Consultant agrees that all information disclosed by the Contractor is considered confidential in nature and Subcontractor / Consultant further agrees that any all disclosed information will not be shared with any other Contractors, Subcontractor / Consultant s or Clients without the express written consent of the Contractor. All information will be considered sensitive and proprietary unless otherwise indicated by the Contractor.

3. Subcontractor / Consultant agree that he will not go directly to Client or through any other Vendor for next 90 days from the day of submission.

4. Subcontractor / Consultant will not use the information gathered as result of discussing the opportunity to gain similar business at the Client introduced to the Subcontractor / Consultant by the Contractor. If a formal working relationship is established between the said Subcontractor/Consultant and Contractor, a Consulting Services Agreement will be signed between the Two Parties and this Non-Solicitation Agreement will form part of Consulting Services Agreement for the Client's engagement.

5. Subcontractor / Consultant or Consultant should send monthly invoices to the Contractor. Contractor will pay approved invoices 30 days after receipt of Invoices.
 
I do not perceive how you can accomplish an end run around Paragraph 3. Unless you wait 90 days to start working with an alternate Vendor or the Client, the contract prohibits you from working for the Client except through Vendor XYZ.

You can approach Vendor XYZ and ask to be excused from this provision if XYZ cannot secure the position with the Client at the $50/hour rate. Of course, Vendor may tell you to pound sand. Nonetheless, it is worth a try. It is also a far better strategy than planning to breach your agreement unilaterally.
 
Thanks for the reply. I was relying on following excerpt from the contract which say XYZ is Client. In fact, Client is ABC. They have incorrectly mentioned XYZ.
WHEREAS: Subcontractor /Consultant is interested in the opportunity to present his Profile to XYZ Technology Client i.e. through ABC in Jersey City, NJ
Based on this definition of Client, I am not trying to reach XYZ. I am trying to reach ABC.
 
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