I'm considering signing an Employment Agreement but there are two clauses that I'm not sure about.
"Termination: Employment is at will... This Agreement shall also terminate as follows:
1.upon the death of Employee
2.upon Employer dissolving, becoming insolvent, filing bankruptcy, or ceasing all business operations
3.sale of the business of either Party."
"Binding Effect; Assignment. The rights and obligations of Employer under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Employer. This Agreement is a personal employment contract and the rights, obligations, and interests of Employee hereunder may not be sold, assigned, transferred, pledged, or hypothecated."
My questions is whether I'll be bound by the Agreement if the company were to either dissolve or get sold or taken over by another company.
The reason for concern is that in the Agreement, there is a 5-year non-compete requirement that starts once the Agreement is terminated. I want to make sure that I am not bound by non-compete clause specifically for two reasons: if company dissolves or is bought out/taken over by another company. Thanks
This is a worst case situation. The company gives you no assurances and wants a 5 year non-compete agreement. Look for a better job.
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