Bond by an Employee for not Engaging himself with a Competitor
THIS BOND Mr. A residing at... binds himself to pay to Mr. B the sum of Rs...
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.
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.
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.
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
removal or for any reason whatsoever, carry on any business similar to the
business of manufacturing the said products or medicines or work with any other
manufacturer carrying on similar business, either as an employee or on ad hoe
basis or partially or otherwise directly or Indirectly within the city of...
and for a period of three years from the time he ceases to be in the service of
the said B then this Bond will become void and of no effect but otherwise it
will remain in full force and effect.
WITNESS WHEREOF the said Mr. A has put his hand this day...
and delivered by the
in named Mr..............
Name & Signature
Name & Signature