Penalties for Insixxx Xxxxxxx Xxxlations Sample Clauses

Penalties for Insixxx Xxxxxxx Xxxlations. An individual found to have purchased or sold securities while in possession of material nonpublic information (also known as “inside information”), or to have tipped such information to others who used it for trading purposes, is subject to civil penalties of up to three times the trading gains or three times the losses avoided. A violator also may be subject to criminal penalties, including imprisonment for up to five years and a fine of up to $100,000 for each violation. Further, the Securities and Exchange Commission (the “SEC”) may seek court orders (i) to stop proposed illicit transactions from occurring, (ii) to seek the return of any profits gained or losses avoided from completed transactions, and (iii) to bar the person from serving as a director or executive officer of a public company. The Company and its controlling persons also may be subject to liability if they knew or should have known of actual or likely violations of the insixxx xxxxxxx xxxs by employees or other persons under their control and failed to take appropriate preventive action. Therefore, it is important that Covered Persons take appropriate steps, as represented by this policy statement, to prevent such violations.