Warren L. Baker, Jr. and Dorris J. Baker - Page 5




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          professional counseling, and prompt and skillful service                    
          essential to the creation and maintenance of successful multiple-           
          line companies and agencies.”                                               
               Section I of the agreement, Mutual Conditions and Duties,              
          provides that petitioner was an independent contractor of State             
          Farm.  As a State Farm agent, petitioner agreed to write policies           
          exclusively for State Farm, its affiliates, and government and              
          industry groups.  Paragraph C, section I of the agreement states            
          that State Farm “will furnish you, without charge, manuals,                 
          forms, records, and such other materials and supplies as we may             
          deem advisable to provide.  All such property furnished by us               
          shall remain the property of the Companies [State Farm].”                   
          Further, State Farm considered any and all information regarding            
          policyholders to be its property, as follows:                               
               D. Information regarding names, addresses, and                         
                    ages of policyholders of the Companies; the                       
                    description and location of insured property;                     
                    and expiration or renewal dates of State Farm                     
                    policies acquired or coming into your                             
                    possession during the effective period of                         
                    this Agreement, or any prior Agreement,                           
                    except information and records of                                 
                    policyholders insured by the Companies                            
                    pursuant to any governmental or insurance                         
                    industry plan or facility, are trade secrets                      
                    wholly owned by the Companies.  All forms and                     
                    other materials, whether furnished by State                       
                    Farm or purchased by you, upon which this                         
                    information is recorded shall be the sole and                     
                    exclusive property of the Companies.                              
          Essentially, any data relating to a policyholder recorded by an             
          agent on any paper was the property of State Farm.                          





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