Mutual Non-Disclosure Agreement

MutualNon-DisclosureAgreementABCCompanyhavingitsprincipalofficeat_________(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,orforanybusinessdecisionsmadeorinferencesdrawnbytheotherpartyinrelianceontheInformationprovidedaccordingt