Legal Question in Business Law in Washington

Re: golden parachutes

That depends on the terms of sale of the company and on the terms of your golden parachute.

If the company sold "substantially all of its assets", the buyer does not assume the liabilities unless specifically provided for in the purchase agreement. Your golden parachute would be a liability. However, if the buyer acquired the company itself (assets and liabilities), your agreement would probably carry forward.

If your agreement, however, has terms that kick in if the company is sold, the buyer might also be released. Also, if your agreement has terms that apply to your benefit if the company, or substantially all of its assets, are sold, you may have some additional protection.

It might be worth your while to have an attorney look at your employment agreement and advise you further.