BOND BY AN EMPLOYEE NOT TO CARRY ON A TRADE OR BUSINESS WITHIN CERTAIN LIMITS

BOND BY AN EMPLOYEE NOT TO CARRY ON A TRADE OR BUSINESS WITHIN CERTAIN LIMITS

BOND BY AN EMPLOYEE NOT TO CARRY ON A TRADE OR BUSINESS WITHIN CERTAIN LIMITS

BOND BY AN EMPLOYEE NOT TO CARRY ON A TRADE OR BUSINESS WITHIN CERTAIN LIMITS

KNOW[P1]  ALL MEN BY THESE PRESENTS that I, A, son of Shri……….………resident of …………… hereby bind myself to XY Co. Ltd. for the payment of the sum of Rs . ……………..            to be paid to the said XY Co. Ltd., its successors and assigns.

Signed by the said A this ……………..          day of…………….

WITNESSES                                                  Signature

WHEREAS

XY Co. [P2] Ltd. who carry on business as manufacturers and dealers          of computers, computer software and accessories at has……….appointed A, hereinafter called the said employee into its employment as ……….on certain conditions by an agreement dated ………….and one of the conditions of employment is that the saidemployee will not directly or indirectly, whether as principal or agent or otherwise carry on or be engaged or concerned or take part in any business of sale of computers, computer software and accessories within ……….kms. of ………….. or solicit the customers of the said XY Co.

Ltd. as hereafter mentioned except with the consent in writing of said XY Co. Ltd. or their successors or assigns obtained beforehand and in the event of breach of any stipulation, provisions or covenants of the said agreement, the said employee shall pay to the said XY Co. Ltd. or his successors or assigns a sum of Rs ………….. as liquidated damages.

NOW[P3]  the condition of this bond is that if the said employee shall not at any time hereinafter directly or indirectly and whether as principal or agent or otherwise carry on or be engaged or concerned or take part in any business or deal in any of the articles of the said business within….     kms. of without the consent in writing of the said XY Co. Ltd. or their successors or assigns AND if the said employee commits breach of any stipulations, provisions or covenants of the said agreement,

A the said employee shall in that event forthwith or upon demand pay to the said XY Co. Ltd. or their successors or assigns a sum of Rs …………as liquidated damages and not as penalty, then the above written bond shall be void but otherwise the same shall remain in full force and virtue

Signed [P4] and delivered by the above named employee

                                                                                                           Date

WITNESSES

1. 

2.                                                                                                        Signature

 [P1]Obligation

 [P2]Recitals

 [P3]Condition

 [P4]Defeasance

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