Thanks gentlemen for your thoughts and info.
It seems to me the dilemma is whether or not to appear as a "Team Player" to the company and possibly risk a larger financial outcome in the unlikely event of a judgement against your employer. Barring a career ending accident/incident of some kind.
However, a few years ago my License was put in jeopardy by a 135 operator. It ended up being a nightmare for the operator but ended up fine for me. As a side note: Had I not self reported the situation to the FAA I'm not sure how my future would have turned out and I could see this type of event possibly becoming a law suit of some kind.
I have asked my CP some questions as to internal appearance/recourse of this contract. Still waiting for his opinion.
Thanks again!