Non-Disclosure, Non-Solicitation and Developments Agreements Covenant (VC Financing)

Because intellectual property, trade secrets and talent are critically important for any Company, especially tech startups, Investors often require startups to have standard agreements with their employees and consultants regarding non-disclosure of confidential information, non-solicitation of employees and customers and assignment of intellectual property. These agreements should be signed by every employee and consultant at the beginning of the relationship. This requirement is usually not controversial, as it is in the Company’s interests to have these agreements in place anyway.
Term Sheet Language: Each current, future and former founder, employee and consultant will enter into a non-disclosure, non-solicitation and proprietary rights assignment agreement in a form reasonably acceptable to the Investors.