An NDA For Small Business is essential when sharing sensitive business information with employees, contractors, or potential business partners. This document, designed for use in the United States, helps protect trade secrets, customer lists, business strategies, and other proprietary information. It incorporates requirements from the Defend Trade Secrets Act and state-specific trade secret laws, while remaining straightforward enough for small business implementation. The agreement is particularly crucial during hiring, business partnerships, or when engaging external services.
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1. Parties: Identification of all parties entering into the NDA, including legal names and addresses
2. Background: Brief context explaining why the NDA is being entered into
3. Definitions: Clear definitions of key terms, especially 'Confidential Information'
4. Scope of Confidential Information: Detailed description of what information is considered confidential
5. Obligations of Receiving Party: Core confidentiality obligations and permitted uses of information
6. Term and Termination: Duration of the agreement and termination provisions
7. Return of Confidential Information: Requirements for returning or destroying confidential information
8. Governing Law: Specification of jurisdiction and applicable law
1. Non-Solicitation: Optional clause to prevent poaching of employees/clients. Include when sharing sensitive business relationship information
2. Non-Competition: Optional clause to restrict competitive activities. Include when sharing business strategy or trade secrets
3. Security Measures: Optional clause specifying requirements for information protection. Include when dealing with highly sensitive data
4. Subcontractors: Optional clause defining rules for sharing information with subcontractors. Include when third-party access might be needed
1. Schedule of Confidential Information: Detailed list of specific confidential information covered by the agreement
2. Schedule of Authorized Recipients: List of individuals authorized to access the confidential information
3. Security Protocols: Specific procedures for handling and protecting confidential information
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