Opinion ID: 146258
Heading Depth: 3
Heading Rank: 2

Heading: Date of Execution of the Endorsement

Text: Kirsh also argues that in the event we find that the CPTI Agreement obligated him to repay the commissions American General paid him on the sale of the Policies, the district court erred by not limiting American General’s recovery to 50% of his commissions. He cites the CPTI Agreement’s provisions, which provide that he must repay 100% of his commissions on the Policies if Alter and Schreck exercise the Endorsement within the first three policy years, 75% if they do so in the fourth, and 50% if they do so in the fifth. He contends that the relevant events—namely the signing and funding of the Settlement Agreement—did not occur until policy year five. 9 Case: 09-20403 Document: 00511107617 Page: 10 Date Filed: 05/11/2010 No. 09-20403 The district court did not err when it found that Kirsh owed American General 100% of the commissions on the Policies. The CPTI Agreement states “if the plan of insurance is exchanged, pursuant to the Endorsement,” then the CPTI Agreement’s staggered chargeback schedule applies. (emphasis added). The Settlement Agreement states that “American General agrees to permit [Alter and Schreck] to exercise the Policies’ respective [Endorsements] as of November 1, 2004.” The parties to the Settlement Agreement apparently did not choose this date arbitrarily; rather, it corresponds with the date on which Alter and Schreck stopped paying the premiums on their policies. Nothing in the CPTI Agreement ties Kirsh’s obligation to repay the commissions from the sale of the Policies to the date that American General and Alter and Schreck executed the Settlement Agreement or discontinued their relationship. We find that Alter and Schreck exercised the CPTI Agreement effective November 1, 2004, and because this date falls within policy year three, the district court did not err when it held that Kirsh owes American General 100% of his commissions on the sales.7