MutualNon-DisclosureAgreement ABCCompanyhavingitsprincipalofficeat_________(hereinafterreferredtoas“ABC”)andXYZCompanyhavingitsprincipalofficeat_________(hereinafterreferredtoas“XYZ”)inconsiderationofthemutualcovenantsofthisAgreement,herebyagreeasfollows: Article1Inconnectionwithnegotiationsbetweenbothpartiesregardingastrategicalliance(hereinafterreferredtoas“SubjectMatter”),eachpartytothisAgreementmaywishtodiscloseitsproprietaryinformation(hereinafterreferredtoas“Information”)totheotherpartyonaconfidentialbasis.ThedisclosingpartymayconsidersuchInformationproprietaryunderthisAgreementeitherbecauseithasdevelopedtheInformationinternally,orbecauseithasreceivedtheInformationsubjecttoacontinuingobligationtomaintaintheconfidentialityoftheInformation,orbecauseofotherreasons. Article2Wheninformationdeemedtobeproprietaryisfurnishedinatangibleform,thedisclosingpartyshallmarktheInformationinamannertoindicatethatitisconsideredproprietaryorconfidentialorotherwisesubjecttolimiteddistributionasprovidedherein.WhenInformationisprovidedorally,thedisclosingpartyshall,atthetimeofdisclosure,clearlyidentifytheinformationasbeingproprietaryorconfidentialorotherwisesubjecttolimiteddistributionasprovidedherein,andpromptlythereafterprovidewrittenconfirmationoftheproprietaryorconfidentialnatureofsuchinformation.Inaddition,theexistenceandtermsofthisAgreement,andthefactandsubstanceofdiscussionsandcorrespondencebetweenthepartiesconcerningtheSubjectMatter,shallbedeemedProprietaryInformation. Article3WithrespecttoInformationdisclosedunderthisAgreement,thepartytowhomtheInformationisdisclosed,itsemployeesandemployeesofitsaffiliatedcompaniesshall: (1)HoldtheInformationinconfidence,exercisingadegreeofcarenotlessthanthecareusedbydisclosingpartytoprotectitsownproprietaryofconfidentialinformationthatitdoesnotwishtodisclose,andinanyevent,notlessthanareasonabledegreeofcare; (2)RestrictdisclosureoftheInformationsolelytothosedirectors,officers,employeesand/oragents/consultantswithaneedtoknowandnotdiscloseittoanyotherperson; (3)AdvisethosepersonstowhomtheInformationwasdisclosedoftheobligationstokeepinconfidencewithrespecttotheInformation;and (4)UsetheInformationonlyinconnectionwithcontinuingcorrespondenceanddiscussionsbythepartiesconcerningtheSubjectMatter,exceptasmayotherwisebemutuallyagreeduponinwriting. Article4IfthepartytowhominformationhasbeendisclosedproposestodisclosethatInformationtoanyunaffiliatedconsultantoragent,itshallobtainthepriorwrittenconsentofthepartyfromwhomtheInformationwasoriginallyreceived,andshallarrangefortheexecutionoftheconsultantoragentofnon-disclosureagreementinaformsatisfactorytothepartyfromwhomtheInformationwasoriginallyreceived. Article5TheInformationshallbedeemedthepropertyofthedisclosingpartyand,uponrequest,theotherpartyshallreturnallInformationreceivedintangibleformtothedisclosingpartyorshalldestroyallsuchinformationatthedisclosingparty’sdirection.Ifeitherpartylosesormakesanunauthoriseddisclosureoftheotherparty’sInformation,itshallnotifysuchotherpartyimmediatelyandusereasonableeffortstoretrievethelostorwrongfullydisclosedInformation. Article6ThepartytowhomInformationisdisclosedshallhavenoobligationtopreservetheproprietarynatureofanyInformationwhich: (1)Waspreviouslyknowntosuchpartyfreeofanyobligationtokeepitconfidential;or (2)Isorbecomesgenerallyavailabletothepublicbymeansotherthanunauthorizeddisclosure;or (3)IsdevelopedbyoronbehalfofsuchpartyindependentofanyinformationfurnishedunderthisAgreement;or (4)Isreceivedfromathirdpartywhosedisclosuredoesnotviolateanyconfidentialityobligation;or (5)Isrequiredtobedisclosedbylaworbyanygovernmentagencyhavingjurisdictionpursuanttoanordertoproduceorinthecourseofalegalproceedingpursuanttoalawfulrequestfordiscoveryprovided,however,thatifapartyissorequiredtodisclosetheInformationsuchpartyshallpromptlynotifytheotherpartyoftheorderorrequestindiscoveryandcooperatewithsuchotherpartyinanyreasonablemannerrequestedintheeventtheotherpartyelects(atitsexpense)tointerveneintheproceedinginwhichtheorderwasenteredortherequestfordiscoverymadeforthepurposeoflimitingoravoidingsuchdisclosurebyanylawfulmeansincluding,butnotlimitedtoincamerareviewandprotectiveorder. Article7NeitherthisAgreement,northedisclosureofInformationunderthisAgreement,northeongoingdiscussionsandcorrespondencebetweentheparties,shallconstituteorimplyacommitmentorbindingobligationbetweenthepartiesortheirrespectiveaffiliatedcompanies,ifany,regardingtheSubjectMatter.If,inthefuture,thepartieselecttoenterintobindingcommitmentsregardingtheSubjectMatter,suchcommitmentsshallbeexplicitlystatedinaseparatewrittenagreementexecutedbybothparties,andthepartiesherebyaffirmthattheydonotintendtheirdiscussions,correspondence,andotheractivitiestobeconstruedasformingacontractregardingtheSubjectMatteroranyothertransactionbetweenthemwithoutexecutionofsuchseparatewrittenagreement. Article8Neitherpartyisresponsibleorliableforotherparty’sactionstakenpursuanttothisAgreement,orforanybusinessdecisionsmadeorinferencesdrawnbytheotherpartyinrelianceontheInformationprovidedaccordingtothisAgreement.Neitherpartysolicitsanychangesinthebusinesspracticesorservicesoftheother,andnoobligationsareincurredwithregardtotheaccuracyoftheobservationsofeitherparty.Neitherpartymakesanywarranty,expressorimplied,withrespecttotheInformation.Neitherpartyshallbeliabletotheotherhereunderforamountsrepresentinglossofprofits,lossofbusiness,orindirect,consequential,orpunitivedamagesoftheotherpartyinconnectionwiththeprovisionoruseoftheInformationhereunder. Article9ThisAgreementshallbebindinguponthepartiesheretoandtheirrespectivesuccessorsandassignees. Article10ThisAgreementshallbegovernedbyandconstruedinaccordancewithBritainLawandshallbesubjecttothejurisdictionoftheEnglishCourts.IntheeventofadisputearisingunderthisAgreementresultinginlitigation,theloosingpartyshallpaythecourtcostsandreasonableattorney’sfeesoftheprevailingparty. Article11DisclosuresofInformationunderthisAgreementmaytakeplaceforaperiod(the“InformationDisclosurePeriod”)ofnomorethanone(1)yearfollowingtheEffectiveDatesetforthbelow.TheobligationsofthepartiescontainedinParagraphs3and4shallsurviveandcontinuebeyondtheexpirationoftheInformationDisclosurePeriodforatermofthree(3)years. Article12Thepartiesacknowledgethatintheeventofanunauthorizeddisclosure,damagestothedisclosing(Information-owning)partyasaresultthereofmaybedifficultorimpossibletoascertain,andinanyeventinadequatetocompensatesuchdisclosingparty;andthereforesuchdisclosingpartymayseekinjunctivereliefand/orspecificperformanceaswellasmonetarydamagesagainstthepartythatbreachesthisAgreement. Article13SolongasthisAgreementisnotbreachedasaresultthereof,thisAgreementshallnotbeconstruedtopreventeitherpartyfrompursuinganyotherbusinessactivity,whetherornotrelatedtotheProprietaryInformationexchanged. Article14ThisAgreementconstitutestheentireunderstandingbetweenthepartieswithrespecttotheInformationprovidedhereunder.NoamendmentormodificationofthisAgreementshallbevalidorbindingonthepartiesunlessmadeinwritingandexecutedonbehalfofeachpartybyitsdulyauthorizedrepresentative. EachpartyrepresentsthatithascausedthisAgreementtobeexecutedonitsbehalfasofthedatewrittenbelowbyarepresentativeempoweredtobindthatpartywithrespecttotheundertakingsandobligationscontainedherein.
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