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Business UPSI Document

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BUSINESS UPSI AGREEMENT

Parties

Disclosing Party:

Receiving Party:

Recitals

WHEREAS, Disclosing Party possesses certain confidential and price-sensitive information that is not generally available to the public and that, if disclosed, may affect the market price of the Disclosing Party's securities or business transactions (hereinafter "Unpublished Price Sensitive Information" or "UPSI");

WHEREAS, Receiving Party has been engaged by Disclosing Party to perform services set forth in the Scope of Work and, in the course of such engagement, will have access to UPSI and other confidential information; and

WHEREAS, the Parties desire to set forth the terms and conditions under which UPSI and other confidential information shall be disclosed, used and protected to ensure compliance with applicable insider trading and securities laws and to preserve the interests of both Parties.

Scope of Work

Payment Terms

Total Fee:

Deposit (if any):

Late Payment Fee: % per month on overdue amounts, compounded monthly.

Term and Termination

Effective Date:

Termination Date / Completion Date:

Either Party may terminate this Agreement for convenience upon days' prior written notice to the other Party. Termination for material breach shall be immediate upon written notice if the breach is not cured within 10 days of receipt of cure notice.

Confidentiality; UPSI Protections

Definition of UPSI: For purposes of this Agreement, UPSI means any information, whether oral, written, electronic or visual, concerning the Disclosing Party's business, operations, financial results, mergers, acquisitions, divestitures, financing arrangements, material contracts, intellectual property, product launches, or other information that is not generally available to the public and which a reasonable investor would consider material in making an investment decision.

Non-Disclosure and Non-Use: Receiving Party shall not, directly or indirectly, disclose UPSI to any person, trade in securities of the Disclosing Party, recommend such trading, or permit access to UPSI except as expressly permitted under this Agreement. Receiving Party shall use UPSI solely for the performance of the Scope of Work and for no other purpose.

Permitted Disclosures: Receiving Party may disclose UPSI only to those employees, advisors or subcontractors with a demonstrated need to know and who are bound by written confidentiality obligations at least as protective as those set forth herein. Receiving Party remains fully liable for any acts or omissions of such persons as if they were the Receiving Party's own acts or omissions.

Security Measures: Receiving Party shall implement and maintain reasonable physical, administrative and technical safeguards to prevent unauthorized access, disclosure, alteration or destruction of UPSI, including but not limited to role-based access controls, encrypted storage and audit logs of access to UPSI.

Mandatory Disclosures: If Receiving Party becomes legally compelled to disclose any UPSI, it shall provide Disclosing Party prompt written notice to allow Disclosing Party to seek a protective order or other remedy. Receiving Party shall disclose only that portion of UPSI that is legally required and shall use reasonable efforts to obtain confidential treatment for the disclosed UPSI.

Return or Destruction: Upon termination or earlier request by Disclosing Party, Receiving Party shall promptly return or, at Disclosing Party's election, securely destroy all UPSI in its possession and provide a written certification of destruction.

Injunctive Relief: Receiving Party acknowledges that breach of this Section would cause irreparable harm for which monetary damages would be inadequate and that Disclosing Party shall be entitled to seek injunctive or other equitable relief in addition to any other remedies at law or in equity.

Compliance with Law

Receiving Party shall comply with all applicable securities laws, insider trading regulations and corporate policies governing the handling of UPSI, including any obligations to report access logs, insider lists, or other records to regulators where required. Receiving Party shall promptly notify Disclosing Party of any suspected or actual unauthorized disclosure or misuse of UPSI.

Indemnification

Receiving Party shall indemnify, defend and hold harmless Disclosing Party from and against any losses, liabilities, damages, costs and expenses (including reasonable attorneys' fees) arising out of any breach by Receiving Party of this Agreement or unauthorized use or disclosure of UPSI by Receiving Party or its Representatives.

Notices

All notices under this Agreement must be in writing and delivered to the addresses below by hand, overnight courier or certified mail.

Governing Law; Entire Agreement

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction selected by the Parties at the time of execution. The Parties hereby submit to the exclusive jurisdiction of the courts of that jurisdiction for any dispute arising out of or relating to this Agreement.

Entire Agreement: This Agreement, including any exhibits or schedules and any written non-disclosure undertakings referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral. Any amendment must be in writing signed by authorized representatives of both Parties.

Miscellaneous

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and the Parties shall negotiate in good faith to replace the invalid provision with a valid provision that achieves the original intent.

Assignment: Neither Party may assign or delegate its rights or obligations under this Agreement without the prior written consent of the other Party, except that Disclosing Party may assign this Agreement in connection with a merger, acquisition or sale of substantially all of its assets.

Disclosing Party - Printed Name:

By:

Date:

Receiving Party - Printed Name:

By:

Date:

Enter text✕

What the Business UPSI Document is and why it exists

A Business UPSI Document is an internal record used to identify, classify, and control unpublished price-sensitive or confidential business information (financial forecasts, M&A plans, trade secrets, or strategic pricing). It documents who has access, the purpose for disclosure, retention rules, and attestations from recipients. Where executed electronically, these records are generally enforceable under federal law (15 U.S.C. ch. 96) and state UETA statutes, provided the transaction demonstrates signer intent, consent, attribution, and reliable record retention. Certain categories such as testamentary instruments and judicial filings remain exceptions to electronic execution.

Why a clear UPSI record matters for a business

A documented UPSI process reduces regulatory and commercial risk by creating an auditable trail of disclosures, limiting unauthorized dissemination, and clarifying who may act on sensitive information.

Why a clear UPSI record matters for a business

Who prepares and who receives the Business UPSI Document

The document is typically prepared by in-house legal, compliance, corporate development, or finance teams before disclosing sensitive information to internal teams, advisers, or counterparties.

  • Legal and compliance teams responsible for disclosure approvals and audit logging.
  • Finance and corporate development teams sharing forecasts, valuations, or transaction data.
  • External advisers (law firms, investment banks, auditors) under NDA and documented access limits.

Recipients include approved employees, external advisors, potential acquirers, or investors—each entry should record role, purpose, and access limitations.

Core elements to include in a professional UPSI document

A complete UPSI document combines identification, scope, controls, and signatory attestations so reviewers can determine who saw what, when, and under what limits.

Identification

Unique document ID, concise title, and a short description of the specific unpublished price-sensitive information or confidential project being disclosed.

Scope

Clear definition of included data types, time range, and any excluded categories so recipients and auditors understand boundaries of the disclosure.

Access controls

Designated roles, least-privilege access rules, and technical measures (encryption, password-protected files) that limit copying and redistribution.

Disclosure log

Structured record of who received the information, date/time, delivery method, and reason for access for post-event review and compliance checks.

Signatory attestations

Recipient statements acknowledging confidentiality obligations, permitted uses, and requirement to report breaches or unauthorized use to compliance.

Retention & disposal

Retention period, archival location, and secure destruction procedure to ensure the information lifecycle is auditable and compliant.

Step-by-step: completing and issuing a UPSI document

Follow a consistent, sequenced process to prepare, approve, send, and retain the document so each disclosure is defensible and auditable.

  • 01
    Prepare: Assemble materials and classify information before creating the UPSI record.
  • 02
    Authorize: Obtain internal approvals from legal and compliance per corporate policy.
  • 03
    Disclose: Deliver via secure channel and record the delivery in the disclosure log.
  • 04
    Record: Capture recipient attestations, signed confirmation, and store with retention metadata.

Typical workflow for secure eDisclosure and tracking

A secure UPSI workflow integrates document assembly, role-based access, signed attestation, and an immutable audit record linking all steps.

  • Assemble package: Compile supporting documents and classification labels.
  • Apply controls: Set encryption, view-only permissions, and expiry dates.
  • Request signatures: Send to recipients with required authentication and capture attestation.
  • Log and archive: Store signed copy and audit trail in a secure repository with retention metadata.

Technical capabilities to support UPSI handling and signing

Choose tools that provide strong authentication, secure storage, and an auditable signing trail while supporting your compliance needs.

  • Authentication: Multi-factor or KBA support for signer verification.
  • Encryption: TLS 1.2/1.3 in transit and AES-256 at rest.
  • Integrations: Integrates with CRM, ERP, cloud storage platforms.

Recommended workflow settings for UPSI eSigning

Configure workflow settings to match your internal controls and the document classification level.

Field Recommended Setting
Signature Type Audit-trail eSignature with timestamp and IP
Authentication Email + SMS code or KBA for external parties
Retention Policy Apply 7+ year archival tag where required
Access Role Role-based permissions; view-only for third parties

Timing: typical deadlines and response windows

Set internal deadlines for disclosure, review, and incident reporting so stakeholders know required response times.

Immediate reporting:

Report suspected leaks to compliance within 24 hours.

Review window:

Allow recipients a defined review period (commonly 48–72 hours).

Signature turnaround:

Target signatures within 3 business days for high-priority disclosures.

Quarterly audit:

Conduct disclosure-log audits every quarter for active projects.

Retention start:

Retention measured from effective date or last access event.

Principal risks and legal consequences

Insider trading: Civil and criminal liability under SEC rules
Regulatory fines: Penalties for failure to control disclosure
Contract damages: Breach of NDA remedies and indemnities
Reputational harm: Loss of market trust and counterparties
Competitive loss: Irreparable business advantage erosion
Operational disruption: Remediation costs and internal investigations

Common mistakes when preparing a UPSI document

  • Failing to classify information properly, which leads to overbroad disclosure and increased leakage risk.
  • Collecting incomplete recipient details, making it hard to enforce NDAs or verify signatory identity later.
  • Using unsecured channels to send UPSI files that lack encryption or view-only controls.
  • Neglecting retention metadata, which complicates audits and eDiscovery when records must be retrieved.

Typical eSignature vendor comparison for UPSI workflows

Select an eSignature provider that meets your authentication, audit trail, and compliance needs; vendor choice affects cost, integration, and envelope limits.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

FAQs and troubleshooting for Business UPSI Document workflows

Practical answers to frequent questions about electronic execution, retention, and signature authentication for UPSI disclosures.


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