Common use of Inside Information Clause in Contracts

Inside Information. No employee, while in possession of material inside information concerning HII (including acquisitions or divestitures contemplated by HII), shall: (i) purchase or sell any stock, bond or other security issued by HII; (ii) purchase or sell any stock, bond or other security by any third party to which the material inside information relates; or (iii) reveal such material inside information to any person, including friends and family members, unless that person needs to know such information in order to carry out duties or obligations to HII. For purposes of this paragraph, "material inside information" is any information which a reasonable investor would consider important in deciding whether to buy, sell, or hold a security and which has not been in the public domain for at least forty-eight hours pursuant to appropriate disclosure. Improper use of inside information by either an insider or a "tippee" constitutes a violation of the Federal Securities laws and could result in the imposition of severe penalties and imprisonment.