Common use of Option to Retain as Consultant Clause in Contracts

Option to Retain as Consultant. Upon termination of Employee's employment, other than for reason of Employee's death, the Company shall have an option to retain the services of Employee as a consultant for a period of one year from the Termination Date. The Company shall exercise such option by giving written notice thereof to Employee within ten (10) days after the Termination Date, and the obligations of Employee as a consultant upon such exercise shall be effective from the Termination Date. If the Company elects to exercise such option, Employee shall make himself available to the Company during the period of consultancy at least 2 hours during any one-month period. Employee agrees to accept as consideration for such services as a consultant a fee of $100 per hour. In addition, the Company shall reimburse Employee for any reasonable expenses paid or incurred by Employee in connection with the performance of duties as a consultant of the Company. Employee shall be entitled to no compensation as a consultant other than the above fees and expenses. Employee acknowledges and agrees to be bound by the obligation not to compete with the Company as set forth in Section 7 below during the period for which Employee is a consultant for the Company.