Common use of DISCLOSURE AND TRADING Clause in Contracts

DISCLOSURE AND TRADING. The Shareholder hereby covenants and agrees that upon receipt of the disclosure of a Strategic Transaction Proposal or a Community West Acquisition Transaction (as those terms are defined in the Agreement), Shareholder shall maintain the confidentiality of all non-public information regarding the Strategic Transaction Proposal or the Community West Acquisition Transaction to the same extent required by the parties to any such transaction under the terms of any confidentiality agreement to which those parties are bound and to refrain from trading in securities of Community West, Palomar, any subsidiary thereof or any other party to the Strategic Transaction Proposal or Community West Acquisition Transaction until the earlier of: (i) full public disclosure of such non-public information has been made and trading in the subject securities would not be a violation of applicable securities laws, or (ii) the Strategic Transaction Proposal or Community West Acquisition Transaction has been terminated or has expired by its terms and disclosure of such non-public information is permitted under the terms of any agreement regarding the transaction and trading in the subject securities would not be a violation of applicable securities laws.