The Confidentiality Letter Agreement is a crucial document used in Hong Kong business transactions where parties need to share sensitive information while maintaining confidentiality. It serves as a preliminary agreement often preceding larger transactions such as mergers, acquisitions, joint ventures, or strategic partnerships. The document is drafted in compliance with Hong Kong law, including the Personal Data (Privacy) Ordinance and common law principles governing confidential information. It typically precedes due diligence processes, business negotiations, or collaborative ventures where proprietary information, trade secrets, or sensitive business data need to be disclosed. The agreement provides legal protection for the disclosing party while setting clear parameters for the receiving party's use and handling of confidential information.
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1. Date and Parties: Opening of letter identifying the disclosing party (sender) and receiving party (recipient), with their full legal names and addresses
2. Background/Purpose: Brief context explaining why confidential information needs to be shared (e.g., potential business transaction, evaluation of opportunity)
3. Definitions: Clear definition of 'Confidential Information' and any other key terms used in the letter
4. Confidentiality Obligations: Core obligations regarding non-disclosure, permitted uses, and standard of care for protecting confidential information
5. Permitted Disclosures: Circumstances under which confidential information can be shared (e.g., with employees, advisors) and requirements for such disclosure
6. Return/Destruction of Information: Obligations regarding the return or destruction of confidential information upon request or termination
7. Term and Survival: Duration of confidentiality obligations and which obligations survive termination
8. Governing Law: Specification of Hong Kong law as governing law and jurisdiction
9. Execution: Signature blocks for authorized representatives of both parties
1. Data Privacy Compliance: Additional provisions specifically addressing compliance with Hong Kong's Personal Data (Privacy) Ordinance when confidential information includes personal data
2. Intellectual Property Rights: Clarification that no IP rights are transferred through the disclosure of confidential information
3. Non-Solicitation: Restrictions on soliciting employees or customers, if relevant to the business context
4. Non-Competition: Restrictions on competing activities, if appropriate for the business relationship
5. Securities Trading Restriction: Prohibition on trading in securities based on confidential information, particularly relevant for listed companies
6. Remedies: Specific remedies available in case of breach, including injunctive relief
7. No Obligation to Proceed: Clarification that sharing of confidential information does not create obligation to proceed with any transaction
1. Schedule 1 - Scope of Confidential Information: Detailed description or categories of information considered confidential
2. Schedule 2 - Authorized Representatives: List of authorized representatives from each party who may receive or handle confidential information
3. Schedule 3 - Security Protocols: Specific security measures required for handling and storing confidential information
4. Schedule 4 - Approved Purpose: Detailed description of the specific purpose(s) for which confidential information may be used
Relevant legal definitions
Confidential Information
Disclosing Party
Receiving Party
Authorized Purpose
Authorized Representatives
Affiliate
Personal Data
Group Company
Representatives
Permitted Disclosees
Business Day
Confidentiality Period
Disclosed Information
Trade Secrets
Proprietary Information
Project
Transaction
Agreement
Notice
Intellectual Property Rights
Data Protection Laws
Security Requirements
Return Date
Restricted Period
Related Person
Connected Person
Disclosing Party
Receiving Party
Authorized Purpose
Authorized Representatives
Affiliate
Personal Data
Group Company
Representatives
Permitted Disclosees
Business Day
Confidentiality Period
Disclosed Information
Trade Secrets
Proprietary Information
Project
Transaction
Agreement
Notice
Intellectual Property Rights
Data Protection Laws
Security Requirements
Return Date
Restricted Period
Related Person
Connected Person
Clauses
Parties
Recitals
Definitions
Confidentiality Obligations
Permitted Use
Permitted Disclosure
Data Protection
Information Security
Return or Destruction of Information
Non-Disclosure
Duration and Survival
Non-Circumvention
No License
No Warranty
Remedies
Indemnification
Assignment
Notice
Severability
Entire Agreement
Variation
Third Party Rights
Counterparts
Electronic Execution
Governing Law and Jurisdiction
Recitals
Definitions
Confidentiality Obligations
Permitted Use
Permitted Disclosure
Data Protection
Information Security
Return or Destruction of Information
Non-Disclosure
Duration and Survival
Non-Circumvention
No License
No Warranty
Remedies
Indemnification
Assignment
Notice
Severability
Entire Agreement
Variation
Third Party Rights
Counterparts
Electronic Execution
Governing Law and Jurisdiction
Relevant Industries
Financial Services
Technology
Manufacturing
Professional Services
Healthcare
Real Estate
Retail
Telecommunications
Energy
Education
Biotechnology
Construction
Media and Entertainment
Transportation and Logistics
Consumer Goods
Relevant Teams
Legal
Compliance
Business Development
Corporate Development
Finance
Risk Management
Human Resources
Information Technology
Operations
Procurement
Research and Development
Strategy
Corporate Secretariat
Investment
Mergers & Acquisitions
Relevant Roles
Chief Executive Officer
Chief Legal Officer
General Counsel
Legal Director
Compliance Officer
Business Development Manager
Chief Financial Officer
Investment Manager
Project Manager
Corporate Secretary
Risk Manager
Procurement Manager
Human Resources Director
Chief Technology Officer
Operations Director
Commercial Director
Mergers & Acquisitions Director
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