Confidentiality Agreement
Confidentiality Agreement
[CLIENT NAME] (the "Client"), a [ENTITY TYPE] organized and existing under the
laws of [STATE/COUNTRY], with its principal place of business at [ADDRESS].
McKinsey and the Client are hereinafter collectively referred to as the "Parties" and
individually as a "Party".
WHEREAS:
C. In the course of their discussions and potential engagement, the Parties may
disclose to each other certain confidential and proprietary information; and
D. The Parties wish to ensure the protection and preservation of such confidential
and proprietary information.
1. Definitions
1.2 Confidential Information shall not include any information that: (a) was
publicly known and made generally available prior to the time of disclosure by
the Disclosing Party; (b) becomes publicly known and made generally
available after disclosure by the Disclosing Party through no action or inaction
of the Receiving Party; (c) is already in the possession of the Receiving Party
at the time of disclosure by the Disclosing Party, as shown by the Receiving
Party's files and records; (d) is obtained by the Receiving Party from a third
party without a breach of such third party's obligations of confidentiality; (e) is
independently developed by the Receiving Party without use of or reference
to the Disclosing Party's Confidential Information, as shown by documents and
other competent evidence in the Receiving Party's possession.
2. Non-Disclosure and Non-Use
2.1 The Receiving Party shall: (a) hold the Confidential Information in strict
confidence; (b) use the Confidential Information solely for the purpose of
evaluating and performing the potential engagement between the Parties (the
"Purpose"); (c) not disclose, distribute, or disseminate the Confidential
Information to any person other than those employees, agents, and advisors
of the Receiving Party who have a need to know such Confidential Information
for the Purpose, and who are bound by obligations of confidentiality no less
restrictive than those set forth herein; (d) not reverse engineer, disassemble,
or decompile any prototypes, software, or other tangible objects which
embody the Confidential Information; (e) take all reasonable measures to
protect the secrecy of and avoid disclosure and unauthorized use of the
Confidential Information.
2.2 The Receiving Party may disclose Confidential Information to the extent
such disclosure is required by law or by order of a court or similar judicial or
administrative body, provided that the Receiving Party: (a) notifies the
Disclosing Party of such required disclosure promptly and in writing; (b)
cooperates with the Disclosing Party in any lawful efforts to contest or limit
the scope of such required disclosure; (c) discloses only that portion of the
Confidential Information that is legally required to be disclosed.
3. Maintenance of Confidentiality
3.1 The Receiving Party shall: (a) maintain all Confidential Information in a
secure location; (b) limit access to Confidential Information to only those
employees, agents, and advisors who have a need to know such information
for the Purpose; (c) inform all persons to whom Confidential Information is
disclosed of the confidential nature of such information and their obligations
with respect thereto; (d) promptly notify the Disclosing Party of any
unauthorized use or disclosure of Confidential Information and take all
reasonable steps to prevent further unauthorized use or disclosure.
4. Return of Materials
4.1 Upon the earlier of (i) the completion or termination of the potential
engagement between the Parties, or (ii) the Disclosing Party's written request,
the Receiving Party shall: (a) promptly return to the Disclosing Party all
documents and other tangible materials containing or representing
Confidential Information; (b) permanently erase or destroy all electronic or
other intangible records or files containing Confidential Information; (c) certify
in writing to the Disclosing Party that it has complied with the requirements of
this section.
5. No Obligation
5.1 Nothing in this Agreement shall obligate either Party to: (a) proceed with
any transaction or relationship between them; (b) disclose any particular
Confidential Information; (c) purchase any products or services from the other
Party.
6. No Warranty
7.1 All Confidential Information shall remain the property of the Disclosing
Party.
8.1 This Agreement shall commence on the date first written above and shall
continue for a period of [NUMBER] years, unless earlier terminated by mutual
written agreement of the Parties.
8.2 The obligations of confidentiality and non-use set forth herein shall survive
the expiration or termination of this Agreement for a period of [NUMBER]
years.
9. Remedies
9.1 The Receiving Party acknowledges that any breach of this Agreement may
cause irreparable harm to the Disclosing Party for which monetary damages
may be inadequate.
10.2 Any dispute arising out of or in connection with this Agreement shall be
subject to the exclusive jurisdiction of the courts of [STATE/COUNTRY].
11. Miscellaneous
11.1 This Agreement constitutes the entire understanding between the Parties
with respect to the subject matter hereof and supersedes all prior
agreements, oral or written, made with respect thereto.
11.4 Neither Party may assign or transfer its rights or obligations under this
Agreement without the prior written consent of the other Party.
11.5 This Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the
same instrument.
Parameters to be filled:
6. Term: The current agreement has a fixed term with survival of obligations. A
discloser-friendly version might have a longer term or indefinite obligations of
confidentiality.
I have produced this draft confidentiality agreement as per your prompt. Do you
have any questions or wish to amend the draft?