Bond by an employee for not engaging himself with a Competitor

Updated at:March 2010
 
FREE EXCERPT

BY THIS BOND Mr. A residing at... binds himself to pay to Mr. B the sum of Rs...

as liquidated damages.

WHEREAS A is a qualified chemist employed by B in his factory manufacturing some pharmaceutical products or medicines viz.................. and in the course of employment Mr. B may come to know the secret formulae adopted by B in the manufacture of such products.

AND WHEREAS As a term of employment A has promised to B not to misuse his position by disclosing to any person the knowledge acquired by him in the manufacture of the said products and has agreed to execute this Bond.

AND WHEREAS however, in the event of A misusing his position as herein stated, he has. at the request of B agreed and hereby agrees to make good the loss by paying him the said B a sum of Rs...... as compensation.

NOW the condition of this bond is that if during the course of employment of Mr. A with Mr. B the said A will work faithfully and honestly and shall not disclose to any person the knowledge he may get regarding the manufacture of the said products and the formulae or manufacturing process thereof and shall not. after he ceases to be the employee of Mr. A due to his resignation or dismissal or...

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