Agency contracts, questions about what I'm signing

[backinthebiz]

I'm thinking about working with an agency that will set medicare advantage appointments for me.

They have a section in their contract about not soliciting their employees/agents to leave the agency or their clients to discontinue their business. It basically says you acknowledge that any employees solicited to leave or clients solicited to discontinue business will cause unknown damages to the agency. You also acknowledge that the damages will amount to over $200,000 for employees/agents leaving the agency and $1,000 for customers discontinuing business.

I've no intention of breaching any contracts I sign, but I've never seen this wording before and it makes me a little hesitant. Is this contract stating I will be fined this amount if I'm accused of stealing employees/agents or the agency's customers?

Thanks for any opinions, advice, or stories.

 

[Carlos Gil]

Yes, this protects them from you leaving with their clientele and staff.

 

[backinthebiz]

Well yeah that is obvious... but it seems naive to put a dollar amount in the contract... how was the 250k calculated? I don't think any agent with experience would sign something like that.

 

[dominga]

What brothers me is the arbitration clause, that only protects them not anyone else.
That would cost me thousands of dollars to pay an arbitrator, which means if I don't have the money I lose automaticlly.