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PLAYBOOK TEMPLATES

Mutual Confidentiality (Non-Disclosure Agreement)

A Mutual NDA establishes reciprocal obligations to protect proprietary and confidential information. This playbook addresses definition scope, duration, and permitted disclosure exceptions.

Compliance Obligations

Why This Matters: Ensuring regulatory and policy compliance mitigates the risk of fines, reputational damage, and transaction shutdowns.

Negotiation strategy

If you're the Disclosing Party A:

Negotiate for comprehensive compliance covenants that include audit rights and clear remediation procedures. Ensure the clause aligns with your risk management strategy.

If you're the Disclosing Party B:

Focus on limiting compliance obligations to reasonable and necessary requirements. Propose mutual audit rights to ensure fairness.

Essential elements

1

Compliance Covenants

Ongoing adherence to laws.
2

Audit Rights

Verification of compliance adherence.
3

Remediation Procedures

Addressing identified breaches.

Action framework

ACCEPT

Propose edits to clarify scope and include specific audit rights.

EDIT

Reject if the clause imposes unreasonable compliance burdens.

ADD

Add if missing to ensure adherence to laws and policies.

PRO TIP

Always tailor compliance clauses to the specific regulatory environment of the transaction.

Real-world examples

FAVORABLE

Preferred Compliance Clause

"The parties shall comply with all applicable laws and regulations and maintain internal policies post-closing. The parties grant each other audit rights to ensure compliance and agree to promptly remediate any identified breaches."
NEUTRAL

Standard Compliance Clause

"The parties agree to comply with applicable laws and regulations post-closing."
UNFAVORABLE

Weak Compliance Clause

"The parties will attempt to comply with applicable laws as feasible."

Alternative scenarios & positions

High-Risk Projects

In high-risk projects, ensure compliance clauses are robust and include detailed audit and remediation processes.

Cross-Border Transactions

Cross-border deals require compliance clauses to address multiple jurisdictions and regulatory bodies.

Regulated Industries

In regulated industries, compliance clauses must align with industry-specific regulations and standards.

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WEEK 3
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WEEK 4
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