NDA: share sale (long)

When do I use this document?

• for a share sale transaction
• where confidential information about the target company will be disclosed to a potential buyer
• for a longer form NDA with strong legal protections for the seller and target company

What are the key features?

• 17 clauses over 9 pages
• definitions of Confidential Information and Proposed Transaction
• confidentiality obligations
• authorised recipients of Confidential Information 
• circumstances permitting compulsory disclosure 
• procedure for returning Confidential Information to the seller 
• prohibition on the buyer poaching the target company’s employees
• contractual remedies for breach of the NDA, including contractual indemnity in favour of the seller and target company
• duration of agreement

What else do I need to know?

It’s quite common that some clauses of an NDA may be resisted by the receiving party. The guidance notes which accompany this document explain how provisions, such as the following, might be negotiated to reach mutual agreement.

• • non-solicitation covenants
  • a contractual indemnity for breach of the confidentiality obligations
  • the duration of the agreement

The guidance notes which accompany the document explain how these provisions might be negotiated to reach agreement.

What other docs are available?

For a shorter form of confidentiality agreement for a company sale transaction, see

• NDA: share sale (short)