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On June 12, 1989, petitioner entered into a 2-year
employment contract with CMS. In accordance with the terms of
the employment contract, petitioner was entitled to the following
compensation: (1) A salary of $7,500 per month for the first
3 months of employment; (2) a salary of $5,000, plus a "loan" of
$2,500 per month for the remaining 21 months;1 and (3) a
commission of 1 percent of the gross revenues generated during
the initial term of any loan servicing contracts he secured
through his sales and marketing plan, plus � percent of the gross
revenues with respect to the renewal period of any such contract.
In the event that petitioner's employment with CMS terminated
(for any of a variety of reasons), he was entitled to receive
earned but unpaid salary and commissions. Throughout his
employment with CMS, petitioner did not earn any commissions.
As an employee of CMS, petitioner had access to certain
confidential information and trade secrets that were the property
of CMS. He was obligated to use his "best efforts and the utmost
diligence to guard and protect such confidential information and
trade secrets", and was bound not to "disclose or permit to be
disclosed to any third party or other person by any method
1The loans were evidenced by promissory notes and accrued
interest at the rate of 11 percent per year. Principal and
interest were payable from future commissions earned by
petitioner.
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