NDA – Confidentiality Agreement (Company Disclosing to Company)

Updated for 2014

This Confidentiality Agreement obliges a company receiving confidential information from another company to maintain the confidentiality of that information and to ensure that all of its representatives do likewise.

It also contains restrictive covenants to help ensure that the recipient does not use the confidential information to gain access to or solicit employees, suppliers or customers of the disclosing party.

Further details are set out below.

 

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From time to time, businesses and people exchange confidential information for the purpose of evaluating the prospect of working together on a joint venture, buying or selling a company, business or asset, and for many other reasons. In disclosing confidential information, the party making the disclosures will want to ensure that the receiving party keeps that information confidential and uses it only for the purpose for which it was disclosed. In order to ensure this, the parties usually enter into a binding confidentiality agreement or non-disclosure agreement (commonly called an “NDA”).

The terms of this confidentiality agreement regulate the manner in which the receiving party and its representatives deal with the confidential information. Moreover, it offers the disclosing party strong remedies to protect its interests in the event that there is a breach of any of the provisions of the confidentiality agreement by either the receiving party or its representatives.

There are some exceptions to the confidentiality requirements under this confidentiality agreement. Where either the receiving party or any of its representatives are required to disclose the confidential information to a regulatory body, to a court or pursuant to an applicable law, it will be permitted to do so provided that (i) the disclosing party is afforded an opportunity to have an input in making that disclosure and (ii) the disclosure is limited to only the information that is required to be disclosed pursuant to the disclosure obligation.

The confidentiality agreement also sets out the manner in which confidential information should be returned to the disclosing party and/or destroyed in the event of a termination of discussions between the parties or otherwise.

The confidentiality agreement also includes standard boiler plate clauses such as in relation to severance, notice requirements, governing laws, etc.

This particular confidentiality agreement is designed for use in circumstances where one party wishes to disclose confidential information to another party for a specific purpose (as described in the confidentiality agreement itself).

Detailed instructions on each of the clauses in this confidentiality agreement and on completing the confidentiality agreement are contained in the notes that accompany the agreement.



Clauses Included in this Confidentiality Agreement:

- Defined Terms Clause

- Obligations of the Receiving Party Clause

- Return of Information Clause

- Reservation of Rights and Acknowledgement Clause

- Principal Clause

- Restrictive Provisions Clause

- Indemnity Clause

- Term and Termination Clause

- Notices Clause

- Announcement Clause

- Counterparts Clause

- Severability Clause

- Waiver Clause

- Costs Clause

- Entire Agreement Clause

- Governing Law and Jurisdiction Clause

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