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agreement also provided for termination upon the death of
petitioner. Within 10 days after termination of the agreement,
“all property belonging to the Companies shall be returned or
made available for return to the Companies or their authorized
representative.”
Petitioner was required to abide by a covenant not to
compete for a period of 12 months following termination. The
covenant not to compete provides as follows:
E. For a period of one year following
termination of this Agreement, you will not
either personally or through any other
person, agency, or organization (1) induce or
advise any State Farm policyholder credited
to your account at the date of termination to
lapse, surrender, or cancel any State Farm
insurance coverage or (2) solicit any such
policyholder to purchase any insurance
coverage competitive with the insurance
coverages sold by the Companies.
Pursuant to section IV of the agreement, petitioner
qualified for a termination payment if he met certain
requirements. First, he must work for 2 or more continuous years
as an agent. Second, within 10 days of termination, he must
return or make available for return all property belonging to
State Farm.
The amount of the termination payment payable is different
for each of the State Farm companies. With two of the State Farm
companies, the amount of the termination payment is based on a
percentage of policies that either remained in force after
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Last modified: May 25, 2011