united-states remedies
Remedies: Take back shares for 100 USD?
<p>Does following part in my contract agreement mean, if I make a mistake, and so breach the contract, company can take back all my shares on 100 USD?</p>
<p>Do you think is it fair, proportional? Part of my compensation are stock option, but I would not work for 100 USD by mistake. Am I understand well this legal text?</p>
<blockquote>
<p>Remedies. Consultant agrees that a breach of the provisions of this Section 7 will cause Company irreparable injury and damage. The parties expressly agree that Company shall be entitled to injunctive and other equitable relief to prevent such a breach, and to an accounting and payment of all profits, compensation, commissions, remunerations, or benefits that Consultant directly or indirectly realizes in connection with such a breach, in addition to any other remedy to which Company might be entitled. The parties waive the posting of any bond or surety prior to the issuance of an injunction hereunder. In the event a court refuses to honor the waiver of bond hereunder, the parties expressly agree to a bond in the amount of one hundred dollars ($100.00). All remedies for such a breach shall be cumulative and the pursuit of one remedy shall not be deemed to exclude any other remedy with respect to the subject matter hereof.</p>
</blockquote>

<p>No, a bond is a guarantee of performance of one party to a judgement. It's effectively meaningless in this context because it's a very low value. If you lost the case when they sued you, this is a guarantee that <em>you have to pay</em>, and isn't returned until the judgement is paid in full.</p>
<p>They can't take your shares, at least not as part of this clause, but they may be able to get a significant judgement against you, forcing you to sell them. I would be very careful here, this clause alone basically makes you unlimited-ly liable for a lot of money.</p>

<blockquote>
<p>The parties waive the posting of any bond or surety prior to the issuance of an injunction hereunder. In the event a court refuses to honor the waiver of bond hereunder, the parties expressly agree to a bond in the amount of one hundred dollars ($100.00).</p>
</blockquote>
<p>This has nothing to do with your shares.</p>
<p>Ordinarily, if a company wanted a court to issue a preliminary injunction against you, the court could make them post a bond, to cover possible damages to you in the event that it later turns out the injunction shouldn't have been granted.</p>
<p>For example, if the Section 7 referenced had to do with their noncompete agreement, and they sued you saying that you were working for a competitor, they might seek an injunction to prevent you from working for that competitor while the case was ongoing. If it turned out that they were in the wrong, they might be liable to you for your lost wages. So the court might grant the injunction but tell them to post a bond in case the court later ruled against them.</p>
<p>This is saying that you agree that they <em>don't</em> have to post such a bond, and if the court says they have to post one anyway, they only have to post $100.</p>
