This Agreement is entered into on March 31, 1997, effective as of the 1st day of January 1997, between
Cimarron Insurance Company, Inc. hereinafter referred to as Insurer, and Mercury General Corporation,
hereinafter referred to as Manager.
In consideration of the promises, conditions and covenants herein contained, the parties agreed as follows:
1. The Manager promises to manage the Insurer, and to conduct on their behalf any and all duties of management
as shall be necessary for the complete operation of the Insurer.
2. That Insurer promises and hereby delegates to the Manager all of the duties of management which they are
allowed to so delegate by the laws of the State of Kansas, including but not limited to the following duties: to
issue and underwrite insurance policies, which the Insurer may be so authorized to do by law, in accordance with
the rules and regulations as delineated in the underwriting manuals of the Insurer, settle and adjust any and all
losses and claims, defend lawsuits, establish premium rates, establish and choose sales agents and brokers,
determine agents' and brokers' commissions, prepare the records necessary for the conduct of the insurance
business, furnish all forms, supplies and agents' manuals necessary for the conduct of the insurance business and
such other duties as mutually agreed upon by the parties.
3. That Manager promises to perform all of the operating functions on behalf of the Insurer including but not be
limited to the following:
A. To acquire, license and appoint sales agents and brokers for the production of the insurance business of and
for the Insurer, provided
that the Insurer shall retain the right to refuse the appointment of any agent or broker and the right to terminate
any agent or broker.
B. To issue and underwrite policies on behalf of the Insurer and to choose and obtain the necessary application
and policy forms.
C. To furnish for Insurer all of the operating forms, printing supplies