{"id":597,"date":"2026-09-18T15:15:50","date_gmt":"2026-09-18T15:15:50","guid":{"rendered":"https:\/\/www.signly.com\/blog\/?p=597"},"modified":"2026-09-18T15:30:22","modified_gmt":"2026-09-18T15:30:22","slug":"nda-template-for-small-businesses-what-to-include","status":"publish","type":"post","link":"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/","title":{"rendered":"NDA Template for Small Businesses: What to Include"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">In the fast-moving world of small business, growth depends heavily on active collaboration. Whether you hire a freelance developer to build a custom application, pitch a strategic partnership, onboard an agency to run performance marketing, or share financial records with a potential buyer, you will inevitably exchange sensitive information.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/#What_Is_an_NDA_and_Why_Does_Your_Small_Business_Need_One\" >What Is an NDA and Why Does Your Small Business Need One?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/#The_Fundamental_Architecture_Mutual_vs_Unilateral_NDAs\" >The Fundamental Architecture: Mutual vs. Unilateral NDAs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/#8_Essential_Clauses_Every_Small_Business_NDA_Template_Must_Include\" >8 Essential Clauses Every Small Business NDA Template Must Include<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/#Common_NDA_Mistakes_Small_Businesses_Must_Avoid\" >Common NDA Mistakes Small Businesses Must Avoid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/#Streamline_Your_Legal_Protection_with_Signly\" >Streamline Your Legal Protection with Signly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/#Summary\" >Summary<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">However, sharing trade secrets, client lists, software code, or proprietary operating procedures carries inherent risk. Without legal protection, your competitive advantage can easily walk out the door.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason, a non-disclosure agreement (NDA)\u2014also known as a confidentiality agreement\u2014becomes your most vital operational shield.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A well-crafted <strong>NDA template for small businesses<\/strong> ensures that prospective partners, contractors, and employees stay legally bound to keep your confidential information secret. Unfortunately, many small business owners make the critical mistake of using generic, overly vague, or excessively punitive legal templates pulled off basic document sites. These outdated PDFs often fail to hold up in court or, even worse, create unnecessary administrative drag that stalls critical business deals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this guide, we explore the essential legal components every small business NDA must contain, highlight the critical mistakes to avoid, and show you how to automate your NDA workflow to execute agreements in seconds.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mutual vs. Unilateral Selection:<\/strong> Choose the right NDA architecture based on whether information flows one way (unilateral) or both ways (mutual).<\/li>\n\n\n\n<li><strong>Precise Definition of Confidential Material:<\/strong> Avoid broad definitions; explicitly catalog what constitutes protected data versus public knowledge.<\/li>\n\n\n\n<li><strong>Carve-Outs and Standard Exceptions:<\/strong> Ensure your template includes mandatory legal exclusions (e.g., publicly known facts or court-ordered subpoenas) to guarantee legal enforceability.<\/li>\n\n\n\n<li><strong>Unified Digital Execution:<\/strong> Combining automated NDA creation with mobile-responsive e-signatures ensures your team secures protection <em>before<\/em> sharing proprietary data.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_an_NDA_and_Why_Does_Your_Small_Business_Need_One\"><\/span>What Is an NDA and Why Does Your Small Business Need One?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A Non-Disclosure Agreement is a legally binding contract that establishes a confidential relationship between parties. The party sharing confidential information (the Disclosing Party) reveals sensitive operational details to another party (the Receiving Party) for a specific purpose. Consequently, the Receiving Party agrees not to disclose that information to third parties or use it for unauthorized gains.<\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>Traditional Paper NDA Flow (High Risk &amp; Friction):\nShare Sensitive Files \u2794 Notice Missing NDA \u2794 Email Draft PDF \u2794 Wait Days for Sign \u2794 Deal Momentum Lost\n\nAutomated Signly NDA Engine (Protected &amp; Fast):\nSelect AI NDA Template \u2794 Auto-Fill Deal Parameters \u2794 Web Link E-Sign Capture \u2794 Instant Secure File Release\n<\/code><\/pre>\n\n\n\n<p class=\"wp-block-paragraph\">Specifically, an NDA protects four core categories of IP for a small business:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Trade Secrets &amp; Methodologies:<\/strong> Proprietary algorithms, recipes, software code, internal workflows, and product roadmaps.<\/li>\n\n\n\n<li><strong>Business Strategy &amp; Financials:<\/strong> Unannounced product launches, pricing structures, profit margins, and fundraising plans.<\/li>\n\n\n\n<li><strong>Customer &amp; Vendor Data:<\/strong> Client lists, contact records, vendor pricing terms, and supplier contracts.<\/li>\n\n\n\n<li><strong>Operational Intelligence:<\/strong> Employee training manuals, pitch decks, and internal performance metrics.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Fundamental_Architecture_Mutual_vs_Unilateral_NDAs\"><\/span>The Fundamental Architecture: Mutual vs. Unilateral NDAs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before drafting your template, determine which of the two fundamental NDA structures your situation requires:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">1. Unilateral (One-Way) NDA<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Use this structure when only one party discloses sensitive data to another.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Common Scenario:<\/strong> Hiring a contractor to design a landing page, onboarding a virtual assistant, or sharing your internal pitch deck with a freelance copywriter.<\/li>\n\n\n\n<li><strong>Dynamic:<\/strong> Only the contractor or recipient carries confidentiality obligations.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">2. Mutual (Two-Way) NDA<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Use this structure when both parties will share proprietary information during discussions.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Common Scenario:<\/strong> Exploring a joint venture between two software firms, evaluating a merger or acquisition, or co-developing a product line with a supplier.<\/li>\n\n\n\n<li><strong>Dynamic:<\/strong> Both entities share equal obligations to protect the information disclosed by the other.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Essential_Clauses_Every_Small_Business_NDA_Template_Must_Include\"><\/span>8 Essential Clauses Every Small Business NDA Template Must Include<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" src=\"https:\/\/blog.signly.com\/wp-content\/uploads\/2026\/09\/linkedin-sales-solutions-46bom4lObsA-unsplash-1024x683.jpg\" alt=\"\" class=\"wp-image-600\" srcset=\"https:\/\/blog.signly.com\/wp-content\/uploads\/2026\/09\/linkedin-sales-solutions-46bom4lObsA-unsplash-1024x683.jpg 1024w, https:\/\/blog.signly.com\/wp-content\/uploads\/2026\/09\/linkedin-sales-solutions-46bom4lObsA-unsplash-300x200.jpg 300w, https:\/\/blog.signly.com\/wp-content\/uploads\/2026\/09\/linkedin-sales-solutions-46bom4lObsA-unsplash-767x511.jpg 767w, https:\/\/blog.signly.com\/wp-content\/uploads\/2026\/09\/linkedin-sales-solutions-46bom4lObsA-unsplash-1536x1024.jpg 1536w, https:\/\/blog.signly.com\/wp-content\/uploads\/2026\/09\/linkedin-sales-solutions-46bom4lObsA-unsplash-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">To withstand legal scrutiny while maintaining operational speed, build your master <strong>NDA template for small businesses<\/strong> around these eight core provisions.<\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>Core Structure of an Enforceable NDA Template:\n\n1. Identification of Parties \u2500\u2500\u25ba Names, corporate entities, and business addresses\n2. Definition of Confidential Data \u25ba Catalog of protected trade secrets &amp; IP\n3. Explicit Purpose Clause \u2500\u2500\u2500\u2500\u25ba Limits usage strictly to the evaluation\/project\n4. Exclusions &amp; Carve-Outs \u2500\u2500\u2500\u25ba Public knowledge, prior possession &amp; subpoenas\n5. Term &amp; Survival Period \u2500\u2500\u2500\u2500\u2500\u25ba Duration of secrecy obligations (e.g., 2\u20135 years)\n6. Non-Solicitation (Optional) \u2500\u25ba Protects employees &amp; client lists from poaching\n7. Remedies &amp; Injunctions \u2500\u2500\u2500\u2500\u25ba Entitlement to immediate court injunctions\n8. Unified Execution Block \u2500\u2500\u2500\u2500\u25ba Mobile e-signature capture &amp; instant audit logs\n<\/code><\/pre>\n\n\n\n<h4 class=\"wp-block-heading\">1. Clear Identification of the Parties<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">State the formal legal names, entity types (e.g., LLC, Corporation), and official business addresses of all participating entities. Avoid using informal brand names or trade names without including the underlying legal entity.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">2. Comprehensive Definition of &#8220;Confidential Information&#8221;<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Clearly define what data receives protection under the agreement. Be specific enough to cover your actual IP without making the definition so broad that it becomes legally unenforceable.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Include oral disclosures, written documents, electronic data, software source code, customer databases, and visual presentations.<\/li>\n\n\n\n<li>Furthermore, specify whether parties must mark disclosures as &#8220;Confidential&#8221; at the time of delivery.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">3. The &#8220;Permitted Use&#8221; or Purpose Clause<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">State exactly <em>why<\/em> you are granting the receiving party access to the confidential information. For example: <em>&#8220;Confidential information shall be used solely for the purpose of evaluating a potential marketing partnership between the parties.&#8221;<\/em> As a result, this prevents the recipient from using your proprietary ideas to build a competing product, even if they never publicly leak the files.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">4. Mandatory Exclusions (Carve-Outs)<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">To maintain legal enforceability under standard commercial law, an NDA must exclude certain types of information from confidentiality obligations. Therefore, the contract must state that information is <em>not<\/em> confidential if it:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Becomes publicly known through no fault of the Receiving Party.<\/li>\n\n\n\n<li>Was already in the Receiving Party\u2019s possession prior to disclosure.<\/li>\n\n\n\n<li>Arrives via independent development by the Receiving Party without reference to the disclosed data.<\/li>\n\n\n\n<li>Requires public disclosure due to a legal subpoena or court order.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">5. Time Period and Survival Term<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, an NDA needs two distinct timeframes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Disclosure Period:<\/strong> How long parties will exchange information (e.g., during 90 days of partnership negotiations).<\/li>\n\n\n\n<li><strong>The Secrecy Term:<\/strong> How long the obligation to keep the information secret lasts (typically 2 to 5 years from disclosure; however, you should protect trade secrets like software source code or trade recipes indefinitely).<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">6. Remedies for Breach and Injunctive Relief<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Monetary damages rarely suffice once a trade secret leaks. Therefore, your NDA template should state that in the event of a breach, the disclosing party can seek <strong>injunctive relief<\/strong> (a court order immediately stopping the recipient from further sharing data) alongside monetary damages.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">7. Non-Solicitation Provisions (Optional)<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">If you bring on contractors, vendors, or potential partners who will interact with your internal team or key accounts, add a non-solicitation clause. Consequently, this prevents them from recruiting your employees or soliciting your clients for a specified period (e.g., 12 months).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">8. Governing Law and Dispute Jurisdiction<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, specify which state or regional courts hold jurisdiction over disputes. This ensures that a legal breach will not force you to litigate in a distant, inconvenient jurisdiction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_NDA_Mistakes_Small_Businesses_Must_Avoid\"><\/span>Common NDA Mistakes Small Businesses Must Avoid<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Using Overly Complex &#8220;Legalese&#8221;:<\/strong> NDAs filled with archaic, convoluted legal jargon create unnecessary friction and delay deal execution. Keep your language clean, precise, and operational.<\/li>\n\n\n\n<li><strong>Failing to Execute <em>Before<\/em> Disclosure:<\/strong> Sharing product prototypes, software credentials, or financial statements <em>before<\/em> securing a signed NDA waives your trade secret protections entirely.<\/li>\n\n\n\n<li><strong>Relying on Static PDF Email Attachments:<\/strong> Emailing Word files or static PDFs back and forth creates version control issues and delays business deals by several days.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To learn how to structure broader service scope documents after executing your NDA, read our operational guide on <a href=\"https:\/\/www.signly.com\/blog\/statement-of-work-sow\/\" target=\"_blank\" rel=\"noreferrer noopener\">Statement of Work (SOW): The Foundation of Clear Project Expectations<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Streamline_Your_Legal_Protection_with_Signly\"><\/span>Streamline Your Legal Protection with Signly<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Manual document drafting, static PDFs, and email back-and-forth introduce unnecessary friction when you need to share sensitive information quickly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fortunately, <strong><a target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.signly.com?utm_source=gemini\">Signly<\/a><\/strong> consolidates your legal agreements into a fast, automated, mobile-first workflow:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Instant AI Contract Builder:<\/strong> Generate tailored, bulletproof NDAs, MSAs, and consulting contracts in seconds using intelligent contextual templates. To learn more, explore our guide on <a href=\"https:\/\/www.signly.com\/blog\/ai-contract-generator-how-it-works\/\" target=\"_blank\" rel=\"noreferrer noopener\">AI Contract Generator: What It Is, How It Works, and How to Modernize Your Legal Workflow<\/a>.<\/li>\n\n\n\n<li><strong>Mobile-Responsive Delivery:<\/strong> Send dynamic, branded web links instead of clunky PDF attachments so contractors and partners can review terms on any device.<\/li>\n\n\n\n<li><strong>Unified &#8220;Sign &amp; Pay&#8221;:<\/strong> For client agreements, capture ESIGN\/UETA-compliant digital signatures and process retainer deposits simultaneously on a single screen.<\/li>\n\n\n\n<li><strong>Automated Post-Signature Redirects:<\/strong> Redirect signers straight to secure file portals, intake forms, or scheduling calendars the moment they execute the agreement. Discover complete onboarding automation strategies in <a href=\"https:\/\/www.signly.com\/blog\/how-to-automate-your-client-onboarding-process\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Automate Your Client Onboarding Process: The Complete Workflow Guide<\/a>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Summary\"><\/span>Summary<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A well-crafted <strong>NDA template for small businesses<\/strong> acts as an indispensable shield for your intellectual property, trade secrets, and competitive edge. By moving away from rigid, static PDFs and adopting an integrated digital agreement platform, you ensure full protection for your business assets without sacrificing vital deal momentum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ready to protect your intellectual property and execute agreements faster? Create your protective NDAs today with <strong><a href=\"https:\/\/www.signly.com\" target=\"_blank\" rel=\"noreferrer noopener\">Signly<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the fast-moving world of small business, growth depends heavily on active collaboration. Whether you hire a freelance developer to build a custom application, pitch a strategic partnership, onboard an agency to run performance marketing, or share financial records with a potential buyer, you will inevitably exchange sensitive information. However, sharing trade secrets, client lists, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>NDA Template for Small Businesses: What to Include - Signly Blog<\/title>\n<meta name=\"description\" content=\"Discover what every NDA template for small businesses must include to protect trade secrets, proprietary ideas, and client data without slowing down operations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.signly.com\/blog\/nda-template-for-small-businesses-what-to-include\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NDA Template for Small Businesses: What to Include - 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