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Embargo Agreement
I need an embargo agreement to restrict the release and distribution of confidential information related to a new product launch, ensuring that all parties involved agree not to disclose any details until the specified embargo date. The agreement should include clauses on penalties for breach, the duration of the embargo, and exceptions for legal obligations.
What is an Embargo Agreement?
An Embargo Agreement sets strict rules about when sensitive information can be released to the public or specific parties. These agreements are common in New Zealand's media, research, and business sectors, where timing the release of news, data, or commercial information is crucial.
Under NZ law, breaking an embargo can have serious consequences, especially when it involves market-sensitive announcements to the NZX or confidential government statistics. Organizations use these agreements to coordinate announcements across different time zones, ensure fair market trading, and give journalists time to prepare accurate stories while maintaining confidentiality until an agreed release date.
When should you use an Embargo Agreement?
Use an Embargo Agreement when coordinating the release of market-sensitive information, research findings, or major announcements in New Zealand. This agreement becomes essential for companies making NZX announcements, research institutions publishing studies, or government agencies releasing economic data.
The agreement proves particularly valuable during mergers, acquisitions, or when sharing pre-release information with journalists, analysts, or stakeholders. It helps maintain market fairness, prevents insider trading, and gives recipients time to analyze complex information while ensuring everyone follows the same release schedule. Many organizations pair it with confidentiality agreements for additional legal protection.
What are the different types of Embargo Agreement?
- Time-Limited Embargoes: Used for short-term news releases, corporate announcements, or product launches with specific release dates
- Market-Sensitive Embargoes: Tailored for NZX announcements and financial data, with strict trading-hour considerations
- Research Embargoes: Common in academic and scientific circles, often lasting until peer review or journal publication
- Government Statistics Embargoes: Used by Stats NZ and other agencies for coordinated release of official data
- Event-Based Embargoes: Tied to specific triggering events like mergers, acquisitions, or major policy changes
Who should typically use an Embargo Agreement?
- Listed Companies: Issue embargoes for market announcements, earnings reports, and corporate restructuring news
- Media Organizations: Receive and agree to embargoes for pre-release access to significant news and financial reports
- Research Institutions: Create embargoes for scientific findings, academic publications, and research outcomes
- Government Agencies: Use embargoes for coordinated release of statistics, policy changes, and public announcements
- Legal Advisors: Draft and review embargo terms, ensuring compliance with NZ securities law and fair trading requirements
How do you write an Embargo Agreement?
- Release Details: Define exact release date, time (including time zones), and any pre-release access periods
- Content Scope: Specify what information is covered, including documents, data, or announcements being embargoed
- Party Information: Gather details of all organizations and individuals who will receive embargoed information
- Distribution Plan: Map out how embargoed information will be shared and secured before release
- Breach Protocol: Outline consequences and actions if embargo terms are violated
- Review Process: Our platform generates legally-sound embargo agreements, ensuring all essential elements are included
What should be included in an Embargo Agreement?
- Parties Section: Full legal names and contact details of all organizations and individuals bound by the embargo
- Release Timing: Precise date, time, and timezone for information release, including any staged disclosure plans
- Confidentiality Terms: Clear rules about information handling before the embargo lifts
- Breach Consequences: Specific remedies and penalties for unauthorized early disclosure
- Permitted Uses: Detailed scope of allowed pre-release activities and information access
- Jurisdiction Clause: Specification that New Zealand law governs the agreement
- Execution Block: Signature spaces for all parties, with date fields and witness requirements
What's the difference between an Embargo Agreement and an Advisory Agreement?
While both documents manage information sharing, an Embargo Agreement differs significantly from an Advisory Agreement. The key distinctions lie in their timing, purpose, and scope of control over information.
- Time Control: Embargo Agreements focus specifically on controlling when information can be released, usually for a short, defined period. Advisory Agreements manage ongoing information sharing throughout a business relationship
- Information Type: Embargoes typically cover news, announcements, or market-sensitive data meant for eventual public release. Advisory Agreements handle confidential business advice and strategic information
- Party Relationships: Embargo Agreements often involve media outlets and multiple recipients simultaneously. Advisory Agreements create one-to-one relationships between advisor and client
- Duration: Embargoes expire at a specific moment, while Advisory Agreements usually remain active throughout the advisory relationship
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