In Intertek, Texas court held company Vice President’s non-compete was unenforceable by purchaser-entity because underlying employment agreement lacked assignment clause. Assignability clauses are frequently buried in the miscellaneous section of agreements.
Imagine paying millions to acquire a company only to later discover the restrictive covenants in the employment agreements of high-level executives were unenforceable. That’s precisely.
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Royalty owners in Texas are taxed annually based on the value of their mineral interests. Frequently, their interests are joined with other royalty owners’ interests in a practice called pooling. Pooling provisions in oil and gas leases are useful tools. Pooling clauses, in conjunction with unitization agreements, allow lessees to combine acreage covered by two or more leases to create a single production unit over a common reservoir (often called a “unitized tract”). This helps prevent waste, preserve minerals, and protect the rights of landowners over a common reservoir. However, pooling provisions can expose a lessor to taxes from multiple counties.