Does the non-compete agreement continue if the company is sold?
The answer seems to depend on how the sale was accomplished.
A. In Clark Substations LLC v Ware, 838 So. 360 (Ala. 2002), the court refused to enforce a covenant against employees when the assets of a corporation had been sold to another corporation and the employees had not signed a new non-compete agreement.
B. A successor corporation which is the product of a merger may enforce an agreement against the employees of the former corporation. Sevier Insurance Agency Inc. v Willis Corroon Corp., 711 So.2d 995 (Ala. 1998).
[This is only a summary of a few cases. This is presented for informational purposes only. Contact a lawyer for an assessment of your situation.]