ARBUS200 Chapter Notes - Chapter 10: Trade Secret, Life Insurance, Equity Sharing
26 May 2016
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Arbus 200 textbook notes bygrave 10 [legal and tax issues] Recruitment of fellow employees: employee cannot knowingly take action designed to harm the employers business. Proprietary information: also known as a trade secret, is information a company wishes to keep confidential, proprietary information can include secret formulas, processes, and methods used in production. Engage with them as early in the process as possible. Cannot be confused with the name of another business. Don"t want to be sued for infringement rights. Negotiating employee terms: stockholders agreement, setting forth responsibilities, titles, compensation & related issues, concise description for each party"s obligations and rewards. Disposition of equity interests: transfer to third parties. Must offer it to the company or other owners: disposition of equity on the owner"s death. Redemption agreement vs. cross-purchase agreement: disposition of equity upon termination of employment. Of events other than death; usually divided upon participation.
