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Labor & Employment Law

: Texas Non-Compete Law Blog

Enforceability of Clawback Provisions in Texas

By Robert Wood

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What happens when an employer gives an employee stock in exchange for a non-compete agreement, but the non-compete agreement is held to be unenforceable.  Does the employee still get to keep the stock?  This question was raised in a case in which the employer gave a ten percent ownership interest in the company to one of its employees.  The employer prepared a stock certificate in the employee's name, but it retained possession of the stock certificate.  Approximately four ye read more

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Full post as published by Texas Non-Compete Law Blog on April 16, 2010 (boomark / email).

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