Keene Corporation v. Hoofe

MARVEL, Vice Chancellor:

The complaint herein seeks to have set aside a transaction in which four thousand shares of plaintiff’s common stock were issued to defendant upon payment by the lat ter of the sum of $33,000 following his entry into plaintiff’s employ and his execution of a stock option agreement governing his acquisition of such shares. Under the terms of § 10(a) of the plan (on the basis of which options for plaintiff’s shares are issued), sale of such shares by an optionee to any buyer other than plaintiff is severely restricted during the first five years of an optionee’s…