non-compete for right to purchase stock
I have been working for a company for 6 years. The company was sold 4 years ago. The previous owner gave me a huge bonus which was to be used to buy stock in the new company. I did this and part of the stock purchase contract included a non-compete. It stated the non compete was to be given for allowing me to purchase stock. I was given no other consideration for the non-complete. I have been working in this industry for 30 years. Is this non compete valid since there was no real consideration given other than allowing me to buy the stock which at the present time is worth 1/2 of the purchas price. I want to quit and start another company that may end up supply product to the same industry.
1 answer | asked Oct 12, 2002 8:36 PM [EST] | applies to Ohio
Answers (1)
I am not entirely clear on what you were given to buy stock and by whom, and on what terms the stock was offered, and by whom. The bottom line, however, is that the company with whom you have the non-compete had to give you something of value in exchange for your decision to sign the non-compete. That something of value does not, however, have to be much. Many courts consider continued employment sufficient considerations. Therefore, I would need to discuss the specific transaction with you to see if you could avoid the non-compete on the basis of lack of consideration.
There are a number of other strategies available to dealing with a non-compete. If you would like to discuss them, we offer an initial consultation for $200.00. Please call Cheryl at 330.665.5445 if you would like to schedule a consultation, as she can get you on my calendar.
Regards,
Neil.
posted by Neil Klingshirn | Oct 14, 2002 10:00 AM [EST]
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