Section 16 Violations Clause Samples

The Section 16 Violations clause defines the consequences and procedures that apply when a party breaches Section 16 of the agreement. Typically, this clause outlines the types of actions or omissions that constitute a violation, such as failing to comply with specific obligations or restrictions set forth in Section 16, and may specify remedies, penalties, or corrective actions required in response. Its core practical function is to ensure accountability and provide a clear framework for addressing and resolving breaches, thereby protecting the interests of the parties and maintaining the integrity of the agreement.
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Section 16 Violations. To indemnify Indemnitee on account of any proceeding with respect to which final judgment is rendered against Indemnitee for payment or an accounting of profits arising from the purchase or sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.