NON-DISCLOSURE AGREEMENT
Mutual & Unilateral NDA Template
SELECT NDA TYPE:
EFFECTIVE DATE: [DATE]
BETWEEN:
[PARTY 1 NAME], a [STATE/COUNTRY] [ENTITY TYPE] with its principal place of business at [ADDRESS]
AND:
[PARTY 2 NAME], a [STATE/COUNTRY] [ENTITY TYPE] with its principal place of business at [ADDRESS]
NOTE FOR MUTUAL NDA: Both parties are referred to as "Disclosing Party" when disclosing information and "Receiving Party" when receiving information.
FOR UNILATERAL NDA:
Disclosing Party: [PARTY NAME]
Receiving Party: [PARTY NAME]
RECITALS
WHEREAS, the Parties wish to explore a business opportunity of mutual interest and benefit (the "Purpose"), specifically: [DESCRIBE PURPOSE: e.g., potential partnership, investment, technology development, etc.];
WHEREAS, in connection with the Purpose, one or both Parties may disclose certain confidential and proprietary information to the other Party;
WHEREAS, the Parties wish to protect the confidentiality of such information;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. DEFINITION OF CONFIDENTIAL INFORMATION
1.1"Confidential Information" means all information, whether written, oral, electronic, visual, or in any other form, disclosed by the Disclosing Party to the Receiving Party, including but not limited to:
- Technical Information: Inventions, designs, specifications, data, algorithms, source code, object code, software, processes, formulas, techniques, research and development, technical drawings, and know-how;
- Business Information: Business plans, strategies, forecasts, budgets, financial information, pricing, costs, customer lists, supplier lists, marketing plans, and sales data;
- Product Information: Product plans, designs, specifications, samples, prototypes, and roadmaps;
- Operational Information: Manufacturing processes, operational methods, supply chain information, and distribution methods;
- Personnel Information: Employee information, compensation structures, and organizational charts;
- Legal Information: Contracts, agreements, intellectual property, and legal strategies;
- Any other information designated as "Confidential," "Proprietary," or bearing a similar legend, or that would reasonably be considered confidential given the nature of the information and circumstances of disclosure.
1.2Forms of Confidential Information. Confidential Information may be disclosed:
- In writing or other tangible form;
- Orally or visually;
- Through demonstrations, facility tours, or meetings;
- Through electronic transmission or remote access;
- In any other form or medium.
1.3Marking Requirements. Written Confidential Information should be clearly marked as "Confidential" or "Proprietary." Oral disclosures should be identified as confidential at the time of disclosure and confirmed in writing within [30] days.
2. EXCLUSIONS FROM CONFIDENTIAL INFORMATION
2.1Exceptions. Confidential Information does not include information that:
- (a) Is or becomes publicly available through no breach of this Agreement by the Receiving Party;
- (b) Was rightfully in the Receiving Party's possession prior to disclosure by the Disclosing Party, as evidenced by written records;
- (c) Is rightfully received by the Receiving Party from a third party without breach of any confidentiality obligation;
- (d) Is independently developed by the Receiving Party without use of or reference to the Disclosing Party's Confidential Information, as evidenced by written records;
- (e) Is approved for release by written authorization of the Disclosing Party.
2.2Burden of Proof. The Receiving Party bears the burden of proving that any information falls within these exceptions.
3. OBLIGATIONS OF RECEIVING PARTY
3.1Non-Disclosure. The Receiving Party shall:
- Hold all Confidential Information in strict confidence;
- Not disclose Confidential Information to any third party without prior written consent;
- Use Confidential Information solely for the Purpose stated in this Agreement;
- Not use Confidential Information for any competitive or commercial purpose;
- Take all reasonable measures to protect the secrecy of Confidential Information.
3.2Standard of Care. The Receiving Party shall protect Confidential Information using the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care.
3.3Limited Disclosure. The Receiving Party may disclose Confidential Information only to its employees, officers, directors, consultants, advisors, and contractors ("Representatives") who:
- Have a legitimate need to know for the Purpose;
- Have been informed of the confidential nature of the information;
- Are bound by confidentiality obligations at least as protective as this Agreement.
3.4Responsibility for Representatives. The Receiving Party is responsible for any breach of this Agreement by its Representatives and shall take all reasonable measures to ensure compliance.
3.5No Copies or Modifications. The Receiving Party shall not copy, reproduce, reverse engineer, disassemble, or decompile Confidential Information without prior written consent, except as reasonably necessary for the Purpose.
4. COMPELLED DISCLOSURE
4.1Legal Requirements. If the Receiving Party is required by law, court order, subpoena, or government agency to disclose Confidential Information, the Receiving Party shall:
- Immediately notify the Disclosing Party in writing (unless legally prohibited);
- Provide the Disclosing Party reasonable opportunity to seek protective order or other appropriate remedy;
- Cooperate with the Disclosing Party's efforts to obtain protective treatment;
- Disclose only the minimum information legally required;
- Use reasonable efforts to obtain confidential treatment for disclosed information.
4.2Costs. The Disclosing Party shall bear all costs associated with seeking protective orders or other remedies, unless otherwise agreed.
5. OWNERSHIP AND NO LICENSE
5.1Retention of Rights. All Confidential Information remains the exclusive property of the Disclosing Party. No license or rights are granted to the Receiving Party except as expressly provided in this Agreement.
5.2No Intellectual Property Transfer. This Agreement does not grant the Receiving Party any rights to patents, copyrights, trademarks, trade secrets, or other intellectual property rights of the Disclosing Party.
5.3No Obligation to Disclose. Nothing in this Agreement obligates either Party to disclose Confidential Information or enter into any business relationship.
6. RETURN OR DESTRUCTION OF MATERIALS
6.1Upon Request. Upon written request by the Disclosing Party, or upon termination of this Agreement, the Receiving Party shall, at the Disclosing Party's option:
- Return all Confidential Information, including all copies, notes, and derivatives; or
- Destroy all Confidential Information and provide written certification of destruction.
6.2Electronic Copies. The Receiving Party shall use commercially reasonable efforts to delete electronic copies, including from backup systems, email archives, and cloud storage.
6.3Retention for Legal Compliance. The Receiving Party may retain one copy of Confidential Information to the extent required by law or for regulatory compliance, subject to continued confidentiality obligations.
7. TERM AND TERMINATION
7.1Term of Agreement. This Agreement shall commence on the Effective Date and continue for [SPECIFY: e.g., 3 years, 5 years, or "until terminated"], unless earlier terminated by either Party upon [30] days' written notice.
7.2Survival of Obligations. The obligations of confidentiality under this Agreement shall survive termination and continue for a period of [5] years from the date of disclosure of each item of Confidential Information.
7.3Trade Secrets. Confidential Information that constitutes a trade secret shall be protected for as long as it remains a trade secret under applicable law.
8. NO WARRANTY
8.1As-Is Basis. ALL CONFIDENTIAL INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ACCURACY, OR NON-INFRINGEMENT.
8.2No Guarantee of Accuracy. The Disclosing Party does not guarantee the accuracy, completeness, or usefulness of Confidential Information. The Receiving Party uses Confidential Information at its own risk.
9. REMEDIES
9.1Irreparable Harm. The Receiving Party acknowledges that unauthorized disclosure or use of Confidential Information would cause irreparable harm to the Disclosing Party for which monetary damages would be inadequate.
9.2Equitable Relief. In the event of breach or threatened breach, the Disclosing Party shall be entitled to seek:
- Injunctive relief and specific performance;
- Monetary damages and other legal remedies;
- Recovery of attorneys' fees and costs;
- Any other relief deemed appropriate by a court of competent jurisdiction.
9.3Cumulative Remedies. All remedies under this Agreement are cumulative and not exclusive.
10. GENERAL PROVISIONS
10.1Entire Agreement. This Agreement constitutes the entire agreement between the Parties regarding confidentiality and supersedes all prior agreements and understandings.
10.2Amendments. This Agreement may only be amended by written agreement signed by both Parties.
10.3Waiver. No waiver of any provision shall be effective unless in writing. Failure to enforce any provision shall not constitute a waiver.
10.4Severability. If any provision is found invalid or unenforceable, the remainder shall remain in full force and effect, and the invalid provision shall be modified to achieve the intended effect.
10.5Governing Law. This Agreement shall be governed by and construed in accordance with the laws of [STATE/COUNTRY], without regard to conflict of law principles.
10.6Jurisdiction and Venue. The Parties consent to the exclusive jurisdiction of courts located in [LOCATION] for any disputes arising under this Agreement.
10.7Assignment. Neither Party may assign this Agreement without prior written consent of the other Party, except in connection with a merger, acquisition, or sale of substantially all assets.
10.8Notices. All notices shall be in writing and sent to the addresses specified above or as otherwise designated in writing.
10.9Counterparts. This Agreement may be executed in counterparts, including electronic signatures, each of which shall be deemed an original.
10.10No Partnership. This Agreement does not create a partnership, joint venture, agency, or employment relationship between the Parties.
⚠️ IMPORTANT NOTICE:
Before signing this Agreement, both parties should:
- Review all terms carefully with legal counsel
- Ensure the Purpose and duration are appropriate for your situation
- Verify that marking and disclosure procedures are practical
- Consider adding specific exclusions or additional protections if needed
PARTY 1 / DISCLOSING PARTY
[COMPANY NAME]
Authorized Signature
Name: [NAME]
Title: [TITLE]
Date: [DATE]
PARTY 2 / RECEIVING PARTY
[COMPANY NAME]
Authorized Signature
Name: [NAME]
Title: [TITLE]
Date: [DATE]
AiPro Institute™ - Professional Business Templates
This template is provided for informational purposes only and does not constitute legal advice. Consult with a qualified attorney before using this agreement.
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