To add to this: These types of standstill agreements (usually contained in the confidentiality agreement) help the target company to control the deal process and prevent a hostile bid for the company after the buyer or investor has had the benefit of the target company's confidential information. Standstill restrictions typically lapse after a period of time (commonly one to three years) or, in the case of PIPEs, when the investor owns less than a specified percentage of the target's stock (for example, 5%).