The Confidentiality Agreement Between Two Companies is essential when businesses need to share sensitive information while maintaining its confidentiality and protecting their interests. This agreement type is particularly crucial in the South African business environment, where it must comply with local legislation including POPIA, the Companies Act, and common law principles protecting trade secrets. It's commonly used during business negotiations, joint ventures, due diligence processes, or any situation where proprietary information needs to be shared. The agreement should address both parties' obligations regarding information protection, permitted uses, and consequences of breach, while ensuring enforceability under South African law. It's designed to protect various types of confidential information including trade secrets, customer data, technical information, and business strategies.
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1. Parties: Identification of the parties entering into the agreement, including their full registered company names, registration numbers, and registered addresses
2. Background: Context of the agreement, including the purpose of sharing confidential information and the nature of the business relationship
3. Definitions: Detailed definitions of key terms, especially 'Confidential Information', 'Authorized Recipients', 'Permitted Purpose', and other relevant terms
4. Scope of Confidential Information: Detailed description of what constitutes confidential information under the agreement
5. Obligations of Confidentiality: Core confidentiality obligations, including non-disclosure, non-use, and security measures
6. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to employees, advisors, and as required by law
7. Protection Measures: Specific security measures required to protect confidential information
8. Return or Destruction of Confidential Information: Obligations regarding the handling of confidential information upon termination or request
9. Duration and Survival: Term of the agreement and which obligations survive termination
10. Breach and Remedies: Consequences of breach and available remedies, including injunctive relief
11. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, entire agreement, and variation
1. Intellectual Property Rights: Section clarifying ownership and protection of IP rights when confidential information includes intellectual property
2. Data Protection Compliance: Specific provisions relating to POPIA compliance when confidential information includes personal information
3. Non-Solicitation: Provisions preventing parties from soliciting each other's employees or clients, used when there's significant business relationship risk
4. Competing Activities: Provisions addressing competition and market activities, used when parties are competitors
5. Export Control: Provisions dealing with international transfer of confidential information, used when information may cross borders
6. Force Majeure: Provisions for unforeseen circumstances affecting confidentiality obligations, used in long-term arrangements
7. Publicity and Announcements: Controls on public statements about the relationship, used in high-profile or sensitive situations
1. Schedule 1: Specified Confidential Information: Detailed list or categories of specific confidential information covered by the agreement
2. Schedule 2: Authorized Recipients: List of individuals or roles authorized to receive confidential information
3. Schedule 3: Security Protocols: Detailed security measures and procedures for handling confidential information
4. Schedule 4: Information Handling Procedures: Specific procedures for marking, storing, transmitting, and destroying confidential information
5. Appendix A: Form of Confidentiality Undertaking: Template confidentiality undertaking for authorized recipients to sign
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