THE UPPER MANAGEMNT GOT WIND OF HER DECISION, SO NOW THEY'RE TRYING TO GET HER AND HER STAFF TO SIGN A AGREEMENT OR STIPULATION THAT THEY WILL NOT INTERFEER OR COMPETE WITH THEIR BUSINESS, AND ARE NOT ABLE TO TAKE HER CLIANT'S WITH HER, THEY'VE BEEN TRYING TO GET HER TERMINATED FOR THIS AS WELL, SHE WANT'S TO STEP DOWN FROM HER MANAGEMENT POSITION DUE TO THE STRESS ENVOLVED, SO THEIR TRYING TO GET THE CORP.OFFICE TO PRESSURE HER OUT.
Can't really answer that one for you, but some things to consider are this. She probably should not sign the agreement not to compete if she intends to compete, even though arguably the non-compete may not be enforceable since it is forced as an adhesion (sign it or get fired) contract.. She may not want to resign as she may lose her rights to unemployment income that she may have if she is terminated. If she is working under contract, then the contract and its terms are binding. They can't force additional terms if she is working under contract. She should find a local business attorney to speak with concerning this. This attorney can probably assist her in setting up her new business and devising a good business plan.
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I agree with David. In addition, your question references your wife's clients, but I would caution that the clients are most likely not your wife's clients, but clients of the company. Information related to those clients is likely the company's property, as well.