Common use of Termination of Options and Forfeiture of Option Gain Clause in Contracts

Termination of Options and Forfeiture of Option Gain. If the Board of Directors of the Company determines in its sole discretion that (a) Employee has breached any of the provisions found in Sections 3 and 4 of this Agreement; or (b) that Employee Competes with the Company during Employee’s employment or at any time within two years following the termination of Employee’s employment with the Company for any reason, then (1) all of Employee’s Options will terminate effective as of the date of that breach, as determined by the Board of Directors, unless terminated sooner by operation of another term or condition of the Option or the Option Plan; and (2) Employee will immediately pay to the Company any Option Gain realized by Employee from exercising all or a portion of Employee’s Options. For purpose of this Section, the term “Competes” means that Employee directly or indirectly (x) owns, operates, manages or controls; (y) serves as an officer, director, partner, employee, agent, consultant, advisor or developer of; or (z) has any direct or indirect financial interest in, any person or entity located any where in the world, which competes directly with or any product line of or service offered by the Company which is material to the business of the Company. Nothing in this Section will prohibit Employee from acquiring or holding less than one percent of any class of publicly traded securities.

Termination of Options and Forfeiture of Option Gain. If the Board of Directors of the Company determines in its sole discretion that (a) Employee has breached any of the provisions found in Sections 3 and 4 of this Agreement; or (b) that Employee Competes with the Company during Employee’s employment or at any time within two years following the termination of Employee’s employment with the Company for Companyfor any reason, then (1) all of Employee’s Options will terminate effective as of the date of that breach, as determined by the Board of Directors, unless terminated sooner by operation of another term or condition of the Option or the Option Plan; and (2) Employee will immediately pay to the Company any Option Gain realized by Employee from exercising all or a portion of Employee’s Options. For purpose of this Section, the term “Competes” means that Employee directly or indirectly (x) owns, operates, manages or controls; (y) serves as an officer, director, partner, employee, agent, consultant, advisor or developer of; or (z) has any direct or indirect financial interest in, any person or entity located any where in the world, which competes directly with or any product line of or service offered by the Company which is material to the business of the Company. Nothing in this Section will prohibit Employee from acquiring or holding less than one percent of any class of publicly traded securities.