THIS MUTUAL NON-DISCLOSURE AGREEMENT (the “Agreement”) governs the disclosure of information by and between LocaTran Translations Ltd. and its Affiliates (collectively, “LocaTran”) and ______________________________ (“Translator”) as of _________________________ (the “Effective Date”).
1. As used herein, “Confidential Information” shall mean any and all technical and non-technical information provided by either party to the other, including but not limited to (a) patent applications, (b) trade secrets, and (c) proprietary information, mask works, ideas, media, techniques, sketches, drawings, works of authorship, models, inventions, know-how, processes, apparatuses, equipment, algorithms, software programs, software source documents, and formulae related to the current, future, and proposed products and services of each of the parties, and including, without limitation, their respective information concerning research, experimental work, development, design details and specifications, engineering, financial information, procurement requirements, purchasing, manufacturing, customer lists, investors, employees, business and contractual relationships, business forecasts, sales and merchandising, marketing plans and information the disclosing party provides regarding third parties. As used herein, “Affiliates” means those business entities controlling or controlled by, or under common ownership or control as LocaTran Translations Ltd. 2. If the Confidential Information is embodied in tangible material (including without limitation, software, hardware, drawings, graphs, charts, disks, tapes, prototypes and samples), it shall be labeled as “Confidential” or bear a similar legend. If the Confidential Information is disclosed orally or visually, it shall be identified as such at the time of disclosure and be confirmed in writing to the receiving party within thirty (30) days of such disclosure, referencing the place and date of oral or visual disclosure and the names of the employees of the receiving party to whom such oral or visual disclosure was made, and including therein a brief description of the Confidential Information disclosed. 3. Each party agrees that at all times and notwithstanding any termination or expiration of this Agreement it will hold in strict confidence and not disclose to any third party Confidential Information of the other, except as approved in writing by the other party to this Agreement, and will use the Confidential Information for no purpose other than evaluating or pursuing a business relationship with the other party to this Agreement. Notwithstanding the above, the party to whom Confidential Information was disclosed (the “Recipient”) shall not be in violation of this Section 3 with regard to a disclosure that was in response to a valid order by a court or other governmental body, provided that the Recipient provides the other party with prior written notice of such disclosure in order to permit the other party to seek confidential treatment of such information. Each party shall only permit access to Confidential Information of the other party to those of its employees or authorized representatives having a need to know and who have signed confidentiality agreements or are otherwise bound by confidentiality obligations at least as restrictive as those contained herein. 4. Each party shall immediately notify the other upon discovery of any loss or unauthorized disclosure of the Confidential Information of the other party. 5. Each party’s obligations under this Agreement with respect to any portion of the other party’s Confidential Information shall terminate when the Recipient can document that: (a) it was in the public domain at the time it was communicated to the Recipient by the other party; (b) it entered the public domain subsequent to the time it was communicated to the Recipient by the other party through no fault of the Recipient; (c) it was in the Recipient’s possession free of any obligation of confidence at the time it was communicated to the Recipient by the other party; (d) it was rightfully communicated to the Recipient free of any obligation of confidence subsequent to the time it was communicated to the Recipient by the other party; (e) it was developed by employees or agents of the Recipient independently of and without reference to any information communicated to the Recipient by the other party and without any violation of any obligation of this Agreement; (f) it was communicated by the other party to an unaffiliated third party free of any obligation of confidence; or (g) it was not legended as Confidential Information of the disclosing party and if disclosed orally or visually, it was not identified as Confidential Information of the disclosing party at the time of such communication and followed by a writing within thirty (30) days of such disclosure. 6. Upon termination or expiration of the Agreement, or upon written request of the other party, each party shall promptly return to the other all documents, notes and other tangible materials representing the other’s Confidential Information and all copies thereof. 7. The parties recognize and agree that nothing contained in this Agreement shall be construed as granting any property rights, by license or otherwise, to any Confidential Information of the other party disclosed pursuant to this Agreement, or to any invention or any patent, copyright, trademark, or other intellectual property right that has issued or that may issue, based on such Confidential Information. Neither party shall make, have made, use or sell for any purpose any product or other item using, incorporating or derived from any Confidential Information of the other party. 8. Confidential Information shall not be reproduced in any form except as required to accomplish the intent of this Agreement. Any reproduction of any Confidential Information of the other party by either party shall remain the property of the disclosing party and shall contain any and all confidential or proprietary notices or legends which appear on the original, unless otherwise authorized in writing by the other party. 9. This Agreement shall terminate one (1) year after the Effective Date, or may be terminated by either party at any time upon thirty (30) days written notice to the other party. The Recipient’s obligations under this Agreement shall survive termination of the Agreement between the parties and shall be binding upon the Recipient’s heirs, successors and assigns. The Recipient’s obligations hereunder shall continue in full force and effect with respect to non-technical sales, marketing, and financial Confidential Information for three (3) years from the date of disclosure of such Confidential Information. The Recipient’s obligations with respect to all technical Confidential Information shall be terminated only pursuant to Section 5. 10. This Agreement shall be governed by and construed in accordance with the laws of China without reference to conflict of laws principles. This Agreement may not be amended except by a writing signed by both parties hereto. All disputes, controversies or disagreements which may arise between the parties, in relation to or in connection with this Agreement, or for the breach hereof shall be finally settled by arbitration as the exclusive forum for resolving such disputes and such arbitration shall be before three arbitrators in accordance with the then prevailing rules of the International Center for Dispute Resolution of the China Arbitration Association. The arbitrators shall apply the laws of China to decide the dispute. The arbitration shall be held in Shanghai, China. The award rendered in said proceeding (and reasons therefore) shall be made in writing and shall be final and binding upon both parties and judgment upon the award may be entered in any court having jurisdiction thereof. The arbitrators shall award reasonable attorneys' fees and the costs of the arbitration to the prevailing party, except that the fees and expenses of the arbitrators, if any, shall be borne equally by the parties. At the request of any party, the arbitration will be conducted in secret. The arbitrators shall not have authority to amend, alter, modify, add to or subtract from the provisions of this Agreement. Notwithstanding the foregoing either party may seek injunctive or other equitable relief at any time in any legal proceedings in any jurisdiction in the event of any threatened or actual breach of this Agreement or in connection with protection and enforcement of its intellectual property and other proprietary rights. 11. Each party acknowledges that its breach of the Agreement will cause irreparable harm for which recovery of damages would be inadequate, and hereby agrees that the other party shall be entitled to seek injunctive relief under this Agreement, as well as such further relief as may be granted by a court of competent jurisdiction.
12. If any provision of this Agreement is found by a proper authority to be unenforceable or invalid such unenforceability or invalidity shall not render this Agreement unenforceable or invalid as a whole and in such event, such provision shall be changed and interpreted so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law or applicable court decisions. 13. Neither party shall communicate any information to the other in violation of the proprietary rights of any third party. 14. Neither party will assign or transfer any rights or obligations under this Agreement without the prior written consent of the other party. 15. Neither party shall export, directly or indirectly, any technical data acquired from the other pursuant to this Agreement or any product utilizing any such data to any country for which the China Government or any agency thereof at the time of export requires an export license or other governmental approval without first obtaining such license or approval. 16. All notices or reports permitted or required under this Agreement shall be in writing and shall be delivered by personal delivery, electronic mail, facsimile transmission or by certified or registered mail, return receipt requested, and shall be deemed given upon personal delivery, five (5) days after deposit in the mail, or upon acknowledgment of receipt of electronic transmission. Notices shall be sent to the addresses set forth at the end of this Agreement or such other address as either party may specify in writing. 17. Each of the parties acknowledges that the software programs of the other party contain valuable confidential information and each party agrees it will not modify, reverse engineer, decompile, create other works from, or disassemble any software programs contained in the Confidential Information of the other party without the prior written consent of the other party. IN WITNESS WHEREOF, the parties hereto have caused this Mutual Non-Disclosure Agreement to be executed as of the Effective Date. LOCATRAN TRANSLATIONS LTD.Translator: ___________________________
By: ___________________________ By: ___________________________
Date:___________________________ Date:___________________________