Change in control agreements are used by businesses to retain professional talent in uncertain times. This allows companies to maintain stability in times of change while assuring executives that they will either retain their position, authority and compensation or be compensated to account for their change in status in the event of a merger or acquisition.

Change in control agreements can be simple or complex depending on the company, position, job requirements and other factors. Tax issues and general business implications should also be examined before proposing or signing a change in control agreement.

Businesses often tie their non-compete provisions to the change in control terms. By doing so, the employer can keep the employee out of the market for a longer period of time by offering the executive additional compensation for refraining from a broader definition of competition. Regardless of whether you are a business or employee, consult with an employment attorney.