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The text discusses the importance of having a separate confidentiality agreement, referred to as a proprietary information and inventions agreement, for employees and consultants in addition to a standard confidentiality agreement. It emphasizes that every company should have this agreement in place when forming the company, and all employees and consultants should sign it. The speaker shares personal experiences of companies not having this agreement in place, causing challenges when dealing with M&A discussions. It stresses the importance of having these agreements signed, especially if individuals were involved in inventing technology.