Contract
ASSOCIATE AGENT EMPLOYMENT CONTRACT
This contract is between XXXXXXXXXXXXXXX (hereinafter “Agent”), and XXXXXXXXXXX, associate agent, (hereinafter “Associate”). The parties agree that this contract will become effective on this 21st day of July, 2003.
1. Appointment. The Agent agrees to certify the Associate to the Nationwide Insurance Companies for appointment as an agent and the Associate will comply with the terms of this contract and the Agency Associate Agent Agreement.
2. Expenses. Associate will pay all expenses in connection with his or her effort to procure and maintain all insurance licenses for Agent. Any expenses charged to the Agent must have the Agent’s prior written approval.
3. Licenses. Associate will be responsible for securing and keeping in effect any required license. Associate agrees not to solicit any lines of insurance unless he or she has the required license authorizing Associate to do so.
4. Errors and Omissions Insurance. Agent will secure E&O protection for Associate and will not deduct the cost from compensation.
5. Exclusive Representation. Associate agrees to devote the entire time during employment hereunder faithfully and diligently to the services of the Agent. Associate further agrees that during his employment he or she will not be licensed as an agent, solicitor, representative, or broker for any insurance company other than those Nationwide Insurance Companies which have appointed him or her and will not directly or indirectly place any insurance whatsoever with or through any insurance company other than those with or through any insurance company other than those Nationwide Insurance Companies which have appointed him or her or the agent, representative, or broker thereof, unless authorized and directed to do so by the Agent.
6. Compensation. Agent will pay Associate base salary of $481.00 per week for the first 6 months of employment, then a base salary of $346.00 for months 6 – 12 and then a final 6 month base of $288.00 per week for months 12-18. Further, Associate will receive 65% of the commission on all new business produced and paid to Agent and 35% of the renewal service fees paid to Agent. The remuneration specified shall be the sole remuneration due Associate from the Agent for all services rendered. Upon completion of first year of employment the Associate will be eligible for the annual bonus of 5% of prior year earnings should agency qualify for President’s conference. Further, upon reaching $200,000 of DWP for year 1 Agent will reimburse Associate for cost of laptop less $750.00.
7. Fiduciary Responsibilities. All funds coming into the possession of Associate shall be promptly paid to the Agent without delay. However, should they not be paid to the Agent, they shall, nevertheless, be considered funds of the Agent and the Agent shall have a first lien on all compensation due or which may become due the Associate to the extent of such funds due to Agent. Agent may deduct said funds from Associate’s compensation.
8. No Competition. Associate further recognizes and acknowledges that his or her services are unique and extraordinary and that Agent’s account, customer, location, commission structure, and financial data as they may exist from time to time, called Agent Information, are valuable, special and unique assets of the Agent’s business. Associate will not during, or within two years after the termination of this contract of employment, disclose the Agent’s information or any part of it to any person, firm, corporation, association or other entity for any reason, without the written consent of the Agent. For a period of two years following the termination of his or her employment, however caused, Associate will not, within the geographical limits of Volusia County directly or indirectly for himself or herself, or on behalf of or as an Associate of any other merchant, firm association, corporation or other entity, engage in or be employed by an insurance agency business or business competitive with Agent.
9. Policyholder Solicitation. In any jurisdiction where a covenant similar to that appearing in paragraph 8 is held to be invalid either by statute or by judicial decision, the Associate agrees that upon termination of this contract he or she shall thereafter refrain from further solicitation or servicing of policy holders of the Agent and from interfering in any way for a period of two years with existing policies and policyholders in the geographical area described in paragraph 8. Further, Associate acknowledges he has no right to policyholder lists, expiration dates, or marketing techniques.
10. Termination. Associate’s employment hereunder shall terminate upon the death of the Associate and said employment may be terminated at will by the Agent or by the Associate by mailing or delivering to the other written notice of termination. Upon termination of the Associate’s employment, compensation or the right to any compensation shall absolutely cease and neither the Associate nor any person, firm or corporation claiming under or through them shall have any claim whatsoever against the Agent for any compensation or any nature, except only for compensation which, in the usual course of business, had fully accrued and become certain and due and payable to the Associate prior to the effective date of such termination.
11. Legal Action. The Associate shall be liable to the Agent for all expenses, loss or damage suffered by the Agent on account of any violation of or refusal or failure to comply with the terms of this contract. The Agent shall have the right to institute legal proceedings to enjoin the Associate from doing any act in violation of this contract or to enforce the specific performance of all the agreements on the part of the Associate. The rights and remedies reserved by the Agent hereunder shall be construed and held to be cumulative and not exclusive of any other right or remedy available to the Agent. It is agreed that no action, suit, proceeding at law or in equity shall be brought under this contract unless it is commenced and process is served within three years after the cause of action for which suit is brought. If the limitations set forth in this paragraph are prohibited by the statutes of the state in which this Agreement is issued, then these limitations shall be deemed amended to agree with the minimum period of limitation permitted by such statutes.
12. Prior Contracts Superseded. The execution and delivery of this contract shall supersede and take the place of any prior contract, provided that the execution and delivery of this contract shall not affect Associate’s obligation to pay any money due the Agent under the provisions of any other agreement, written or oral, nor shall the execution of this contract nullify any negotiated compensation entered into between Associate and the Agent on cases written prior to the execution of that contract.
13. Severability. If any clause or part of this Agreement shall be held invalid for any reason, then such invalidity shall not affect any part of this Agreement and the parts thereof not invalid shall remain in full force and effect.
14. Upon the two year anniversary of this contract the Agent and Associate will revisit terms of the agreement. Further, should an opportunity open up for another satellite office for Agent, Associate and Agent will revisit said contract for the purposes of revision if needed.
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Agent Date
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Associate Agent Date
ASSOCIATE AGENT TWO-PARTY AGREEMENT STATEMENT
I, Agent XXXXXXXXXXX have a two-party agreement with Associate Agent ___________
_____________ effective from this ___ day of _______________, 2003 forward.
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Agent Date
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Associate Agent Date
One copy to be retained by the Agent and the Associate Agent. One copy to AM who then forwards to the RSS/ASM
