Common use of Adjustment of Compensation Clause in Contracts

Adjustment of Compensation. The compensation may be adjusted, either up or down, as a result of the annual review of the actual mix of business by the Insurance Companies. The actual results will be compared to a target return. If results are better than the target, to the extent allowed by law: First year commissions will be increased retroactively to share in 50% of the Excess. Commissions will be capped at 15%. If results are worse than the target, to the extent allowed by law: The difference will be neutralized by: First, reduce any of the revenue sharing in excess of 15 bps Second, reduce, retroactively, first year compensation. For any variable product, the Insurance Company may elect, from time to time, to make advances of compensation to the Distributor. Any such advance shall be deemed a loan, payable upon demand, and secured by a first lien (security interest) upon compensation payable by the Insurance Company to the Distributor, without he necessity of execution of any further document, and Insurance Company shall be entitled to set off amounts owed to it by Distributor against any amounts owed to Distributor by the Insurance Company.