Common use of Consequences of Entrustment with Sensitive Information Clause in Contracts

Consequences of Entrustment with Sensitive Information. Distributor's relationship with Company requires considerable responsibility and trust. Relying on Distributor's ethical responsibility and undivided loyalty, Company agrees to and expects to entrust Distributor with highly sensitive, confidential, restricted, and proprietary information involving Trade Secrets and Confidential Information (as defined herein). Distributor should recognize that it could prove very difficult to isolate these Trade Secrets and Confidential Information from business activities that Distributor might consider pursuing after termination of Distributor's Services, and in some instances Distributor may not be able to compete with Company in certain ways because of the risk that Company's Trade Secrets and Confidential Information might be compromised. Distributor acknowledges and agrees that Distributor is legally and ethically responsible for protecting and preserving Company's proprietary rights for use only for Company's benefit, and these responsibilities may impose unavoidable limitations on Distributor's ability to pursue some kinds of business opportunities that might interest Distributor during or after Distributor's relationship with Company.

Consequences of Entrustment with Sensitive Information. Distributor should recognize that Distributor's relationship with Company Supplier requires considerable responsibility and trust. Relying on Distributor's ethical responsibility and undivided loyalty, Company Supplier agrees to and expects to entrust Distributor with highly sensitive, confidential, restricted, and proprietary information involving Trade Secrets and Confidential Information (as defined herein). Distributor should recognize that it could prove very difficult to isolate these Trade Secrets and Confidential Information from business activities that Distributor might consider pursuing after termination of Distributor's Services, and in some instances Distributor may not be able to compete with Company Supplier in certain ways because of the risk that CompanySupplier's Trade Secrets and Confidential Information might be compromised. Distributor acknowledges and agrees that Distributor is legally and ethically responsible for protecting and preserving CompanySupplier's proprietary rights for use only for CompanySupplier's benefit, and these responsibilities may impose unavoidable limitations on Distributor's ability to pursue some kinds of business opportunities that might interest Distributor during or after Distributor's relationship with CompanySupplier.