Common use of Post Termination Activity Clause in Contracts

Post Termination Activity. In consideration and receipt of Company trade secrets, business methods and procedures which are the property of the Company and which enable the Company to compete successfully I it business, Producer agrees that for a period of two (2) years following termination of this Agreement for any reason, Producer shall not solicit, or attempt to solicit, directly or by assisting others any business from any of Company’s policy owners, including actively seeking prospective policy owners, with whom Producer had material contact during Producer’s agency for purposes of providing products or services that are competitive with those provided by Bankers. Producer agrees that any violation of the above-referenced covenant not to solicit Company’s policyholders, may result in the cessation and termination immediately of all Compensation, commissions, fees, payment, or other enumeration to which Producer is or may be entitled whether vested or not. Breach of this provision shall also entitle the Company to injunctive relief. Producer hereby waives the right to contest the bringing or the granting of said injunctive relief, and Producer further agrees that Producer shall be liable for the Company’s reasonable attorneys’ fees and court costs in the event the Company employs any attorney and files a legal or equitable action to enjoin such violation of these provision of the Agreement and/or to seek any and all remedies available hereunder or at law. In any successful action by the Company to enforce the above-referenced covenant, Producer shall be liable in addition to the above, for liquidated damages in an amount equal to 60 percent of the annualized first year premium of each Company policy which lapsed, surrendered, terminated, cancelled or was replaced as a result of Producer’s violation of said covenant. Producer acknowledges that should he violate any of the provisions of this paragraph, the damage to Company would be difficult or impossible of estimation. Hence, Producer agrees that the 60 percent figure referenced above is a reasonable pre-estimate of the probable loss to Company and does not constitute a penalty.