What is a Change of control agreement?

A Change of Control Agreement is a legal contract that outlines the rights and obligations of parties involved in the event that a significant change occurs in ownership or control of a business, such as a merger or acquisition. These agreements often include provisions for compensation, job security, and other benefits for key employees or stakeholders affected by the change. They aim to protect the interests of individuals and ensure a smooth transition during ownership changes. Such agreements can also address potential triggers for termination or renegotiation of existing contracts.