If this was not in the employment contract, then it's even more problematic. I'm pretty sure this is very likely violation of multiple laws. If some random lawy

If this was not in the employment contract, then it's even more problematic. I'm pretty sure this is very likely violation of multiple laws. If some random lawyer added this lifetime clause for their own sake without escalating to the board, then they should be immediately fired. It's possible that Sam was not aware of its illegality and now wanted to minimize his liability though.