Common use of Effect of Covenants Clause in Contracts

Effect of Covenants. You acknowledge that: (a) as a senior executive of Surety, you have and will have access to confidential information concerning the entire range of businesses in which Surety is and will be engaged; (b) that Surety’s businesses are conducted throughout the United States and Canada; and (c) that Surety’s confidential information, if disclosed or utilized without its authorization would irreparably harm Surety in: (i) obtaining renewals of existing customers; (ii) selling new business; (iii) maintaining and establishing existing and new relationships with employees, agents, brokers, vendors; and (iv) other ways arising out of the conduct of the businesses in which Surety is engaged. To protect such information and such existing and prospective relationships, and for other significant business reasons, you agree that it is reasonable and necessary that: (a) the scope of this Agreement be United States and Canada; (b) its breadth include the entire surety industry, except as otherwise provided in this Section 8; and (c) the duration of the restrictions upon you be as indicated therein. You acknowledge that Surety’s customer, employee and business relationships are long-standing, indeed, near permanent and therefore are of great value to Surety. You agree that neither any of the provisions in this Agreement nor Surety’s enforcement of it alters or will alter your ability to earn a livelihood for yourself and your family and further that both are reasonably necessary to protect Surety’s legitimate business and property interests and relationships, especially those which you were responsible for developing or maintaining.