James J. and Sandra A. Gales - Page 7


                                        - 7 -                                          
                    which you receive override, then no commissions or                 
                    advances will be due you under this contract.  IMA                 
                    is responsible for payment of earned commissions                   
                    only if such commissions are paid to IMA in cash                   
                    by the CO.                                                         
                         *    *  *  *  *  *    *                                       
               18) You understand and agree that if you fail to                        
                    comply with any or all of the terms of this                        
                    contract, you shall forfeit forever any commission                 
                    that would otherwise be due under the contract,                    
                    whether vested or not.                                             
                         *    *  *  *  *  *    *                                       
               STATEMENT OF ACCOUNT                                                    
               IMA will each month, or at other reasonable intervals,                  
               furnish you with a statement of your account and                        
               remittance for any amount due.  Upon receipt of such                    
               account or remittance, you shall notify IMA in writing                  
               of any corrections or irregularities within ten (10)                    
               days of the date you receive such statement and/or                      
               remittance, or the statement shall be deemed correct,                   
               and rights to change any accounting shall be waived.                    
          The agreement also contains a schedule of commission percentages,            
          setting forth the percentages of premiums earned by petitioner               
          for the initial year and for renewal years of policies sold by               
          him.  The agreement provides that it is to be construed pursuant             
          to the laws of the State of Texas.                                           
          Payments Received From IMA                                                   
               During 1992 and 1993, petitioner received payments from IMA             
          in the amounts of $222,304 and $319,765, respectively (the 1992              
          and 1993 payments).  IMA reported the 1992 and 1993 payments to              
          both respondent and petitioner as nonemployee compensation on                
          Forms 1099-MISC, Miscellaneous Income (the Forms 1099).                      
          Petitioners reported the 1992 and 1993 payments as gross receipts            





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011