How do you want this agreement to address the recipient’s trading in securities of the disclosing party?

Option 1 has the recipient simply acknowledge what the law is. But it’s not clear that agreeing to keep information confidential prevents trading while in possession of that information; see Donald C. Langevoort, 18 Insider Trading Regulation, Enforcement and Prevention § 6:7 (2010). To prevent trading, you should have the recipient agree not to trade. Whether you select option 2 or 3 to accomplish that depends on the sensitivity of the confidential information. But either prohibition would only be meaningful if the disclosing party could point to damages caused by breach. Donald C. Langevoort, 18 Insider Trading Regulation, Enforcement and Prevention § 9:8 (2010).

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