Non-Disclosure Agreement Template
This Non-Disclosure Agreement (“Agreement”) is entered into and made effective as of [Effective Date] (the “Effective Date”), by and between:
[Disclosing Party Name], a [type of entity, e.g., corporation, limited liability company, individual] organized and existing under the laws of [Jurisdiction], with its principal place of business at [Address] (“Disclosing Party”);
and
[Receiving Party Name], a [type of entity, e.g., corporation, limited liability company, individual] organized and existing under the laws of [Jurisdiction], with its principal place of business at [Address] (“Receiving Party”).
WHEREAS, the Disclosing Party possesses certain information, materials, data, and know-how which are confidential and proprietary in nature and wishes to disclose such information to the Receiving Party solely for the purpose of [Purpose of Disclosure];
AND WHEREAS, the Receiving Party acknowledges the importance of maintaining the confidentiality of such information and agrees to undertake the obligations set forth herein with respect to all Confidential Information received from the Disclosing Party;
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Definitions and Interpretation
For the purposes of this Agreement, the terms defined in this section shall have the meanings ascribed to them below, unless the context otherwise requires.
“Confidential Information” means all information, whether oral, written, visual, electronic, or in any other form, that is disclosed by or on behalf of the Disclosing Party to the Receiving Party, and that is designated as confidential or that, given the nature of the information or the circumstances surrounding its disclosure, reasonably ought to be considered as confidential, including but not limited to business plans, strategies, financial information, technology, designs, processes, inventions, trade secrets, customer lists, and any analyses, compilations, studies or other documents prepared by the Receiving Party containing or reflecting such information.
“Disclosing Party” refers to the party identified above as disclosing Confidential Information under this Agreement.
“Receiving Party” refers to the party identified above as receiving Confidential Information under this Agreement.
“Representatives” means, in relation to a party, its directors, officers, employees, consultants, professional advisors, contractors, agents, and any other persons acting on its behalf, who need to know the Confidential Information for the Purpose.
References to the singular include the plural and vice versa, and references to one gender include all genders.
Any reference to “including” or “includes” shall be interpreted as meaning “including, without limitation”.
The headings in this Agreement are inserted for convenience only and shall not affect the interpretation of this Agreement.
All references to sections, clauses, or parties are to sections and clauses of, and parties to, this Agreement unless otherwise stated.
Any capitalized term used but not defined in this Agreement shall have the meaning given to it in the context in which it is used.
Purpose and Scope of Disclosure
The purpose of the disclosure of Confidential Information under this Agreement is [insert description of the purpose and scope of the disclosure, e.g., evaluating a potential business relationship, conducting negotiations, or any other specific purpose agreed upon by the parties] (“Purpose”).
Disclosure of Confidential Information by the Disclosing Party is strictly limited to information necessary for the Purpose and shall not be deemed to grant the Receiving Party any rights except as set forth herein.
The Receiving Party shall use the Confidential Information exclusively for the Purpose and for no other purpose, whether directly or indirectly, without the prior written consent of the Disclosing Party.
The Disclosing Party reserves the right, at its sole discretion, to determine the nature, scope, and extent of the Confidential Information to be disclosed and shall have no obligation to disclose any particular information.
Nothing in this Agreement shall obligate either party to proceed with any transaction or relationship contemplated by the Purpose.
The Receiving Party acknowledges that the Confidential Information may relate to unpatented inventions, trade secrets, or proprietary business practices, the unauthorized disclosure of which could cause substantial harm to the Disclosing Party.
All Confidential Information remains the property of the Disclosing Party and is provided solely for use in connection with the Purpose, subject to the terms and conditions of this Agreement.
Obligations of Confidentiality
The Receiving Party agrees to keep all Confidential Information strictly confidential and not to disclose, publish, or disseminate it to any third party except as expressly permitted by this Agreement.
The Receiving Party shall restrict access to the Confidential Information exclusively to those of its Representatives who have a legitimate need to know such information for the Purpose and who are bound by obligations of confidentiality not less stringent than those set forth herein.
The Receiving Party shall not use any Confidential Information for its own benefit or for the benefit of any third party, except as necessary to accomplish the Purpose.
All copies, reproductions, summaries, translations, or other derivatives of the Confidential Information, whether made by the Receiving Party or its Representatives, shall be subject to the terms of this Agreement.
The Receiving Party shall take all reasonable measures and precautions necessary to prevent unauthorized disclosure, access, or use of the Confidential Information.
The obligations of confidentiality imposed by this Agreement shall apply irrespective of the form or format in which the Confidential Information is disclosed or stored.
The Receiving Party shall promptly notify the Disclosing Party in writing of any unauthorized use or disclosure of Confidential Information of which it becomes aware.
Exclusions from Confidential Information
The obligations set forth in this Agreement shall not apply to any information that the Receiving Party can demonstrate by competent evidence:
was already lawfully known to the Receiving Party, without restriction on disclosure or use, prior to receipt from the Disclosing Party;
is or becomes generally available to the public through no fault of the Receiving Party or its Representatives;
is lawfully received by the Receiving Party from a third party who is not in breach of any confidentiality obligation to the Disclosing Party;
is independently developed by the Receiving Party or its Representatives without reference to or use of the Confidential Information;
is approved for release or disclosure in writing by an authorized representative of the Disclosing Party; or
is required to be disclosed by law, regulation, or court order, provided that the Receiving Party shall promptly notify the Disclosing Party of such requirement and cooperate, at the Disclosing Party’s expense, in seeking a protective order or other appropriate remedy.
No combination of information will be deemed to fall within the above exclusions merely because individual elements are publicly known, unless the combination itself and its significance are publicly known.
Any exceptions to confidentiality obligations must be interpreted narrowly and substantiated with documentary evidence satisfactory to the Disclosing Party.
The burden of proof for establishing the applicability of any exclusion shall rest solely with the Receiving Party.
Permitted Disclosures
Notwithstanding any other provision herein, the Receiving Party may disclose Confidential Information to its Representatives, provided that such Representatives are informed of the confidential nature of the information and are subject to written or legal obligations of confidentiality no less restrictive than those imposed by this Agreement.
The Receiving Party shall be responsible for any breach of this Agreement by its Representatives, affiliates, or contractors and shall take all necessary measures to ensure their compliance.
Confidential Information may be disclosed to the extent required by applicable law, regulation, or legal process, provided that the Receiving Party gives the Disclosing Party prompt written notice of any such requirement prior to disclosure, to the extent permitted by law.
The Receiving Party shall cooperate fully with the Disclosing Party in seeking to obtain a protective order or other appropriate remedy to limit or prevent such disclosure.
If, in the absence of a protective order, the Receiving Party is nonetheless legally compelled to disclose Confidential Information, it shall disclose only that portion of the Confidential Information which it is legally required to disclose, and shall exercise reasonable efforts to obtain assurances that confidential treatment will be accorded to such information.
The Receiving Party may make disclosures with the prior written consent of the Disclosing Party, which consent may be granted or withheld at the Disclosing Party’s sole discretion.
All permitted disclosures shall be made solely for the Purpose defined in this Agreement and subject to the same degree of confidentiality as required herein.