Common use of Risk Sharing Clause in Contracts

Risk Sharing. For so long as the Employee shall remain an employee of the Company, the following provisions shall apply with respect to the Shares: (i) The Employee shall be solely responsible for one hundred percent (100%) of any losses occurring with respect to the sale or transfer by the Employee of any of the Shares prior to the third anniversary of the Effective Date. (ii) The Employee shall be entitled to fifty percent (50%) of any gains (with the Company being entitled to the other fifty percent (50%) of any such gains), occurring with respect to the sale or transfer by the Employee of any of the Shares prior to the third anniversary of the Effective Date. (iii) The Employee shall be entitled to one hundred percent (100%) of any gains occurring with respect to the sale or transfer by the Employee of any of the Shares on or following the third anniversary of the Effective Date, but on or prior to the fifth anniversary of the Effective Date. (iv) The principal amount of the Note shall be reduced by fifty percent (50%) of any losses occurring with respect to the sale or transfer by the Employee of any of the Shares on or following the third anniversary of the Effective Date, but on or prior to the fifth anniversary of the Effective Date.