Covenants of Recipient Clause Samples
The "Covenants of Recipient" clause sets out the ongoing promises and obligations that the recipient of confidential information or other benefits must uphold under an agreement. Typically, this clause requires the recipient to maintain confidentiality, use the information only for permitted purposes, and refrain from unauthorized disclosure or misuse. For example, the recipient may be required to implement reasonable security measures or notify the disclosing party of any breaches. The core function of this clause is to ensure that the recipient acts responsibly and in accordance with the agreement, thereby protecting the interests of the disclosing party and minimizing the risk of misuse or unauthorized dissemination.
Covenants of Recipient. Recipient covenants as follows:
Covenants of Recipient. Recipient covenants and agrees he or she may in no event sell or distribute or otherwise dispose of all or any part of the Shares unless:
(a) The Shares are fully vested; and
(b) There is an effective registration statement under applicable federal and state securities laws covering the sale of the Shares; or
(c) NetREIT, Inc. receives an opinion of Recipient’s legal counsel (concurred in by NetREIT, Inc.’s legal counsel) stating that such transaction is exempt from registration or NetREIT, Inc. otherwise satisfies itself that such transaction is exempt from registration.
Covenants of Recipient
Covenants of Recipient