The Business Purchase Confidentiality Agreement is essential when a business owner considers selling their company and needs to share sensitive information with potential buyers. This U.S.-governed document is typically used during the initial stages of business sale negotiations, before due diligence begins. It protects proprietary information, trade secrets, customer data, and other confidential details that may be disclosed during the evaluation process. The agreement ensures that potential buyers can't use the information for any purpose other than evaluating the business purchase opportunity.
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1. Parties: Identification of all parties involved in the agreement, including legal names and addresses
2. Background/Recitals: Context of the potential business purchase and reason for confidentiality agreement
3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Permitted Purpose', 'Representatives'
4. Confidentiality Obligations: Core obligations regarding the protection and non-disclosure of confidential information
5. Permitted Uses: Specified purposes for which the confidential information may be used
6. Term and Termination: Duration of the agreement and circumstances for termination
7. Return of Information: Obligations regarding the return or destruction of confidential information
1. Non-Solicitation: Prevents recipient from soliciting employees or customers of the disclosing party during the agreement period
2. Non-Compete: Restricts competitive activities during the due diligence process and specified period thereafter
3. Data Protection: Specific provisions for handling personal data and compliance with data protection laws
4. Securities Trading: Provisions preventing insider trading and compliance with securities laws
1. Schedule of Authorized Representatives: List of individuals authorized to access confidential information
2. Schedule of Confidential Information: Detailed description of information considered confidential under the agreement
3. Data Security Requirements: Technical and organizational requirements for handling digital information
4. Notification Requirements: Procedures and timeframes for mandatory disclosures or breach notifications
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