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Delaware Supreme Court Holds Restrictive Covenants Still Enforceable After Stock Unit Consideration Forfeited
A&O Shearman via JDSupra
Apr. 23, 2026 "The for-cause termination resulted in the automatic forfeiture of defendant's vested and unvested units under the Incentive Unit Grant Agreement. .... The Court emphasized that courts must examine whether adequate consideration was received at the time the contract was formed and that any subsequent diminishment in the value of the benefit does not negate consideration. Notwithstanding that the value units were 'somewhat contingent' at the time they were awarded, the Court found that value was not 'illusory.' " [North American Fire Ultimate Holdings, LP v. Doorly, No. 142, 2025 (Del. Feb. 3, 2026)] MORE >> |
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