These agreements are pretty normal. As others have already pointed out, suggest your friend talk to a lawyer. And don't sign any fresh agreements prior to tha

These agreements are pretty normal. As others have already pointed out, suggest your friend talk to a lawyer. And don't sign any fresh agreements prior to that conversation. Quite a few states have laws limiting the scope in both time and 'intellectual space' over which your employer may claim rights. In Washington (I'm not a lawyer, but I have recent experience with this), the law limits PIAAs to development using company resources, in the same or prospective market, and term of employment +6 months -- and burden of proof is on the employee. From what I researched at the time, this seemed to be about the middle of the road for employee-cum-entrepreneur legal protections. I'm not sure it matters in the end...if you can't afford to leave your job, can you really afford a legal battle with your behemoth ex-employer? The best way to avoid needing the legal protections is to be open, transparent, and avoid conflicts of interest.