MILL CREEK PARTNERS
CONFIDENTIALITY AGREEMENT
WHEREAS, Mill Creek Partners (“Broker”) has been engaged by a
certain company or companies (collectively, the “Companies”, and
each individually a “Company”) to assist the Companies in facilitating
the sale of their respective businesses;
WHEREAS, each Company is the owner of certain “Confidential Information” as
such term is defined below;
WHEREAS, each Company has provided Broker with its Confidential Information
with the understanding that (a) Broker may deliver such Confidential Information
to prospective purchasers for their evaluation of such Company; and (b) such
Confidential Information shall be kept in strict confidence by all recipients
thereof except to the extent necessary for such prospective purchaser to evaluate
such Company;
WHEREAS, Recipient is a prospective purchaser as contemplated above and, in
order to evaluate the financial and other aspects of certain of the Companies,
desires to review the Confidential Information of such Companies; and
WHEREAS, Recipient acknowledges that receipt of Confidential Information relating
to any of the Companies is conditioned upon its agreement to the terms of this
Agreement.
NOW THEREFORE, with the foregoing premises deemed incorporated by reference,
and in consideration of Recipient’s receipt of the Confidential Information
from certain of the Companies, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Recipient, intending
to be legally bound, agrees as follows.
1. “Confidential Information” shall mean all data disclosed
by any of the Companies, or their respective agents or representatives, to
the Recipient, including, without limitation, all financial data, reports,
trade secrets, techniques, processes, operations, formulae, product specifications,
know-how, compositions, inventions, discoveries, designs, sketches, drawings,
samples, formats, plans, analyses, strategies, forecasts, concepts, ideas,
names, addresses , and/or any other materials obtained from such Company or
its representatives both prior to and subsequent to executing this Agreement.
Confidential Information shall also include the knowledge that such Company
may be seeking to complete a transaction for the sale of certain of its assets.
Confidential Information shall be deemed not to include information which (i)
is or becomes generally available to the public, other than as a result of
a disclosure in violation of this Agreement by Recipient, (ii) becomes available
to Recipient on a non-confidential basis from a source which, to the Recipient’s
knowledge, is entitled to disclose it to Recipient, (iii) was known by Recipient
prior to its disclosure to Recipient by the Company, or (iv) is developed by
Recipient without the benefit of Confidential Information.
2. All Confidential Information is considered highly sensitive and strictly
confidential. Accordingly, Recipient agrees that it shall maintain such
Confidential Information in strict confidence and shall not disclose or otherwise
provide or transfer, directly or indirectly, any of the Confidential Information
to any third parties except as expressly permitted herein. Recipient shall
not use or exploit the Confidential Information for any purpose other than
evaluating the desirability of Recipient’s purchase of assets of certain
of the Companies. Recipient shall limit disclosure and transfer of Confidential
Information to Recipient’s employees, officers, representatives, directors,
attorneys, consultants, accountants, advisors and agents that have a legitimate
need to review the Confidential Information in evaluating Recipient’s
purchase of the assets. Recipient shall require such third parties to be bound
by this Agreement. The actions of Recipient’s employees, officers, agents,
directors, consultants or advisors shall be deemed the actions of the Recipient
with respect to the Confidential Information, and any unauthorized use or disclosure
of Confidential Information by such third parties shall constitute a material
breach hereof. Recipient may disclose the Confidential Information as may be
required by law, regulation or legal process, provided Recipient provides any
Company affected by such disclosure of Confidential Information thirty (30)
days prior written notice of Recipient’s intention to disclose such Confidential
Information.
3. This Agreement shall terminate one (1) year from the date of signing. Upon
termination hereof, all Confidential Information shall be immediately returned
to the Company providing such Confidential Information or its representatives
or destroyed in accordance with the reasonable instruction of such Company.
Recipient’s obligations herein regarding non-disclosure of the Confidential
Information shall survive the termination of this Agreement.
4. It is further understood that Broker has been engaged by the Companies
to assist in the facilitation of a transaction between the Companies and prospective
purchasers. In the course of Broker’s engagement by the Companies, Broker
has conducted no independent investigation as to the accuracy of the Companies’ representations
or warranties in reference to their respective businesses, their financial
statements, tax returns, or other reports or documents in reference to their
respective businesses, or any other aspects of the Companies or their respective
businesses. Broker has not conducted any audit or verification of any Company’s
underlying financial records. Broker has neither appraised nor otherwise independently
determined the value of any assets or other property owned by the Companies. Recipient
shall direct all communications and requests for information regarding any
of the Companies through Broker. Any verbal or written communications by Broker
to Recipient regarding any of the Companies shall be considered Confidential
Information.
5. Recipient acknowledges that, in the event of any disclosure of Confidential
Information or other breach of this Agreement by Recipient, the affected Company
may suffer irreparable harm which may not be adequately compensated for by
monetary damages alone. Accordingly, Recipient agrees that in the event of
a breach by Recipient hereunder, in addition to any other remedies at law or
in equity that it may have, any Company affected by Recipient’s breach
hereunder shall be entitled, without the requirement of posting a bond or other
security, to injunctive and or other preliminary or equitable relief.
6. Recipient hereby indemnifies and agrees to defend and hold harmless the
Companies, their respective shareholders, directors, officers, employees and
agents, including Broker, from and against any damages, losses, costs and expenses
(including, without limitation, attorney’s fees) suffered by any such
party as a result of a breach of this Agreement by Recipient or persons for
whom Recipient is responsible, or suffered as a result of the enforcement by
such Company of this Agreement, or any other exercise of rights by such Company
relating to Recipient’s failure to preserve the Confidential Information
as contemplated in this Agreement. If any Company shall prevail in any action
at law or in equity relating to Recipient’s failure to preserve the Confidential
Information as contemplated in this Agreement, Recipient shall pay such Company’s
costs and expenses, including reasonable attorneys’ fees, incurred by
such Company in bringing such action.
7. This Agreement shall be governed by, and construed in accordance with,
the laws of the Commonwealth of Pennsylvania. This Agreement may not
be amended or any provision hereof waived in whole or in part except by a writing
signed by both parties hereto.