Often, in the course of performing due diligence regarding a company's standing and financial status, you'll have to provide access to confidential information. Access to that information could give the recipient an unfair advantage when investing or divesting in your company.
In such a case, you can use a Confidentiality and Stand Still Agreement to ensure the information is safe from being revealed to third parties. It also helps prevent the receiving party from using the information for personal gain or taking other hostile actions against your interests.
A Confidentiality and Stand Still Agreement is a legally binding document that protects proprietary or confidential information shared between two individuals or organizations. In addition to protecting the information from being distributed, this agreement also delays specific actions the receiving party can take.
Often, this sort of agreement is used to protect information disclosed to a person or organization when reviewing a proposed business transaction. It effectively protects the information disclosed and stops the information from being used to solicit employees or trade-in the revealing party's securities.
By including standstill provisions in confidentiality agreements, you can protect your organization from hostile actions resulting from information disclosure, such as a takeover of voting securities. However, the Confidentiality and Stand Still Agreement can also apply to other measures, such as not soliciting or engaging in acquisitions with other parties.
A Confidentiality and Stand Still Agreement protects a potential deal from being soured by disclosing information.
Depending on your state, a Confidentiality and Stand Still Agreement may also be known as:
Confidentiality and Stand Still Agreements are primarily used by organizations involved in evaluating a proposed business transaction. The responsibility for drafting a Confidentiality and Stand Still Agreement falls on the party revealing information.
Typically, when mergers and acquisitions are negotiated, a Confidentiality and Stand Still Agreement effectively stops the process of a potential hostile takeover if a deal can't be reached that's amenable to both sides. Therefore, any business entity engaged in disclosing proprietary information that may lead to their voting stocks' purchase or sale needs a Confidentiality and Stand Still Agreement.
Companies subjected to pressure from aggressive bidders are well-advised to pay close attention to how this agreement is composed. A good Confidentiality and Stand Still Agreement is an excellent way to stall unsolicited approaches and give you more control over future negotiations.
Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Confidentiality and Stand Still Agreement.
Each document on 360 Legal Forms is customized for your state.
All you have to do is fill out a simple questionnaire, print, and sign. No printer? No worries. You and other parties can even sign online.
A negotiation process can be exceedingly delicate, and both parties need to feel confident that their interests are protected in any agreement. By answering a few simple questions, our proprietary form generator will create a Confidentiality and Stand Still Agreement tailored to your organization's needs.
Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.
To create your document, please provide:
A Confidentiality and Stand Still Agreement needs to be signed by the disclosing party and the receiving party or their authorized officers. If the signatures are witnessed, the witnesses should also sign the agreement. A Confidentiality and Stand Still Agreement does not need to be notarized to be enforceable.
However, notarizing the signatures on your Confidentiality and Stand Still Agreement is a way to ensure no one challenges them later and firmly establishes the document's validity.
Once signed, distribute a copy of the Confidentiality and Stand Still Agreement to each of the signatories. Each should keep a copy in their respective personal records.
Periodically, it's beneficial for both parties to review the terms of the agreement. The receiving party may come into contact with information not protected in the original agreement, or the disclosing party may not need to protect certain information anymore.
A Confidentiality and Stand Still Agreement can refer to sensitive financial information. Both parties are encouraged to keep the documents in a secure location with limited access.
Our exhaustive library of documents covers your personal, business, and real estate needs with all of your DIY legal forms.
Create professional documents for thousands of purposes.
Make unlimited documents and revisions. Sign online in seconds.
Our documents are vetted by lawyers and are applicable to all 50 states.