Common use of Forfeiture of Option Clause in Contracts

Forfeiture of Option. GAIN 6.1 Forfeiture of option gain and unexercised options if Optionee engages in certain activities. If, at any time within two years after termination of employment, Optionee engages in any activity in competition with any activity of the Company, or inimical, contrary or harmful to the interests of the Company, including, but not limited to (a) conduct related to Optionee’s employment for which either criminal or civil penalties against Optionee may be sought, (b) accepting employment with or serving as a consultant, advisor or in any other capacity to an employer that is in competition with or acting against the interests of the Company, including employing or recruiting any present, former or future employee of the Company, or (c) disclosing or misusing any confidential information or material concerning the Company, then (i) this Option shall terminate effective the date on which Optionee enters into such activity, unless terminated sooner by operation of another term or condition of this Option or the Plan, and (ii) any gain realized by Optionee from exercising all or a portion of this Option shall be paid by Optionee to the Company. The forfeiture described herein shall not be required if Optionee’s employment with the Company terminates following a transaction described in Section 3.3.