Common use of Termination of Service as a Director Clause in Contracts

Termination of Service as a Director. If the Optionee ceases to be a director of the Company for any reason other than his death, he may thereafter exercise this option to the extent he was entitled to exercise it on the date when his service as a director terminated, but only within three months after the date of such termination (unless a longer period is allowed by the Board of Directors of the Company). In no event, however, may the Optionee exercise this option at a time when the option would not be exercisable had the Optionee's service as a director continued. For purposes of this provision, the Optionee's service as a director will not be considered terminated in the case of a bona fide leave of absence approved by the Board of Directors of the Company.