My sympathies for your potential loss -- and my hopes that it won't happen...

But, I am not sure that these things can ever be decided with a simple yes/no, formula kind of answer. They are far too complicted with far too many individualized variables: How close are you to retirement?, How marketable are your current job skills? What are your life goals? How enforceable are the no-compete clauses they may be offering?

Frankly, I find it unacceptable that a company would turn you out and then ask you not to turn to a competitor (or even a supplier) for continued employment in your chosen field -- and offering a bribe does not change that. You either have a relation with them or you don't.

That is, while it is highly unethical to disclose or abuse company specific information or knowledge, you owe it to yourself to not give away or squander your own individual talents and knowledge. They can protect their intellectual property rights -- but it is and should be difficult for them to tell you that you are not able to utilize your own intellectual property and abiliites.

But, my tendency is to take the money as a lump sum -- but be careful not gamble it away (in the market) or squander it... Rather, invest it wisely and safely... And to do the same for yourself: invest your time, energy and talents where they will benefit you for the rest of your life.

So, my take is: They can fire you, and they can protect their property -- but they cannot tell you what to do with your own talents, knowledge and abilities. They can try -- and they probably will. But they are at a disadvantage... But, in the end, you are better off rid of any organization that would F you and then expect you to squander your talents and abilities to their benefit. A GOOD organzation would help you find another job -- not try to stop you from finding one...