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The text discusses the importance of having a confidentiality agreement, specifically a proprietary information and inventions agreement, in place for employees and consultants. This agreement is crucial for protecting intellectual property and ensuring that all parties involved in the company have signed it. The speaker emphasizes the significance of having this agreement in place from the beginning to avoid complications in the future, especially during M&A discussions. Failure to have employees and consultants sign this agreement can lead to potential issues regarding ownership of technology and inventions.