Broker Associate / Salesperson Employment Agreement · 01-01-2018 · Any Broker Associate or...

Commercial Sales & Leasing Mortgage Banking & Brokerage Real Estate Brokerage

B U S I N E S S ● C H A R A C T E R ● I N T E G R I T Y

CEO/Broker of Record: Controller/Accounting & Compliance: David Parry Jill Englander

California Bureau of Real Estate Lic. #: 01344191 ● NMLS Lic. #: 289837

Tel: (424) 274-1144 (310) 877-8700 9595 Wilshire Boulevard, #900, Beverly Hills, CA 90212 7488 La Jolla Boulevard, La Jolla, CA 92037

Email: [email protected] or [email protected] Website: http://www.buildingcapital.com

Broker Associate / Salesperson Employment Agreement

Broker Associates “Non-Exclusive”: ➢ BCI unconditionally allows Non-Exclusive Broker Associates to “own & operate” his/her own

independent mortgage company(s). ➢ Non-Exclusive Broker Associates can utilize Building Capital, Inc.’s lenders for ANY originations,

even if it is for 1-lender as a “pass through” or “one-off”, e.g., Union Bank. ➢ Non-Exclusive Broker Associates MAY utilize Building Capital, Inc.’s Loan Processors or their

own Loan Processors. ➢ Non-Exclusive Broker Associates MUST purchase a Calyx Point Central License/Seat.

o This is monthly fee of $29.00. ➢ Supplemental Sponsorship” is required by the NMLS.

o This is 1-time setup fee of $30.00 + 0.75 for credit card fee + $1.25 service fee = $32.00.

Broker Associates “Exclusive”: ➢ BCI also offers Broker Associates the opportunity to “Exclusively Affiliate”, i.e., utilize Building

Capital, Inc.’s lenders for ALL originations (residential, commercial, multi-family & construction). ➢ “NOT own & operate” his/her own independent mortgage company(s). ➢ Exclusive Broker Associates MAY utilize Building Capital, Inc.’s Loan Processors OR utilize their

own Loan Processor (DOE & subject to BCI approval). ➢ Exclusive Broker Associates MUST purchase a Calyx Point Central License/Seat.

o This is monthly fee of $29.00. o BCI will pay 50.00% of this fee, i.e., $14.50.

➢ Exclusive Broker Associates shall have their “Supplemental Sponsorship” 1-time NMLS setup fee of $32.00 “WAIVED” by BCI, i.e., BCI will pay it.

NOTE: 32 Page document. There are 4 pages (3, 21, 31, 32) for signature, date & completion

mailto:[email protected]


http://www.buildingcapital.com/







Loan / R.E. Agent Compensation: Loan Processor Fees: Commission: TBD% of Gross Loan Commission Conventional Conforming: $595.00 Corporations: W-9 Conventional High Agency Balance: $695.00 Individuals: 1099 (No W-2’s) Portfolio Loans: $795.00 Payroll times: 2-3 business days Jumbo Loans: $895.00 Accounting: $49.00 per file Legal: $69.00 per file

Mortgage Loan Officers: Real Estate Agents:

Fees Per File: Errors & Omissions: $69.00 Errors & Omissions: $125.00 Accounting & Administrative: $59.00 Accounting & Administrative: $59.00 City Biz Tax (.006 x Commission): TBD City Biz Tax (.006 x Commission): TBD Wire Transfer Outgoing: $25.00 Wire Transfer Outgoing: $25.00 Commission Checks Mailed: $0.00 Commission Checks: $0.00 Loan Origination Software (Calyx): $29.00 mo. Transaction Fee: $395.00 Loan Processing: $795.00

Annual Fees NMLS (MLO Designation) Annual: $330.00 BHGLAAR Annual Membership: $659.00 Optimal Blue / Loan Sifter: $0.00 MLS Bi-Annual Membership: $220.00 Webcaster (Calyx Point): $0.00

Free Services Optimal Blue / Loan Sifter: $0.00 Webcaster (Calyx Point): $0.00

Credit Vendors: Credco CoreLogic Equifax Information Services, LLC










EMPLOYMENT AGREEMENT Employee Name: _________________________________________________________________ Employee Position: _________________________________________________________________ Employee SSN: _________________________________________________________________ Date of Hire: _________________________________________________________________ BCI has the following DBA entities: BCI, BCI Realtors, BCI Realty (henceforth “BCI”). 1099 MISCELLANEOUS INCOME INDEPENDENT CONTRACTOR (IF APPLICABLE) BCI is NOT responsible for the payment of any taxes whatsoever that are due to the IRS or Franchise Tax Board or any other regulatory or municipal agency from a 1099 Miscellaneous Income Independent Contractor with which BCI has a business relationship with AND in which monies are exchanged from BCI to the 1099 Miscellaneous Income Independent Contractor. If the 1099 Miscellaneous Income Independent Contractor incurs any problem, difficulty, legal action (civil or criminal) as a direct result of their failure to pay their taxes, BCI is not responsible whatsoever in part or whole for the payment of these taxes. The 1099 Miscellaneous Income Independent Contractor forfeits all claims, rights and actions against BCI unconditionally and in perpetuity in relation to this paragraph. The 1099 Miscellaneous Income Independent Contractor is not under any coercion or duress regarding this paragraph and the contents herein. ACKNOWLEDGEMENTS All BCI Branch Managers, Loan Officers, Loan Processors, Loan Coordinators, Loan Administrators, Assistants, Receptionists, Information Technology Persons, Advertising Persons, be they W-2 Employees or 1099 Miscellaneous Independent Contractors are required to sign, date, and unconditionally consent to the enforcement of this agreement per Bureau of Real Estate Regulations & Guidelines and/or BCI Internal Policy. BCI reserves the unilateral right to update, addend, amend, or re-structure the wording of this policy at any time. Upon such “changes”, an updated version will be provided to all BCI employees and Branch locations for signature and date.










ADDENDUM TO THIS POLICY AND AGREEMENT Each individual branch office manager may at his sole discretion prepare an addendum to this policy and agreement. BCI Realtors primary office reserves the exclusive right to approve, modify, or decline this addendum. Said addendum shall exist for the prime purpose of assisting the branch manager with successful recruiting of employees, and creating an overall relationship, work atmosphere and written arrangement designed to manufacture the most conducive general climate possible between BCI and the employee. AFFILIATED COMPANIES BCI is a DBA of the parent corporation filed with the County Recorder-Registrar Office in Los Angeles County. BCI Realtors is a DBA of the parent corporation, filed in the County Recorder-Registrar Office in Los Angeles County. BCI Realty is a DBA of the parent corporation, filed in the County Recorder-Registrar Office in Los Angeles County. ASSISTANTS Any Broker Associate or Salesperson who wishes to hire an assistant must comply with one of the following options:

1) If the Broker Associate or Salesperson desires to pay their assistant as a 1099 Miscellaneous Income Independent Contractor for services rendered, there shall be a written agreement between the Broker Associate or Salesperson and their assistant. Said agreement shall be exclusive to these parties and BCI shall not be responsible in any way for compensating the 1099 Miscellaneous Income Independent Contractor. Moreover, the 1099 Miscellaneous Income Independent Contractor shall not be an employee of BCI and shall identify themselves only as the “assistant to the Broker Associate or Salesperson”.

2) If the Broker Associate or Salesperson desires to pay their assistant as a W-2 employee of BCI, the Broker Associate or Salesperson shall contact the Broker of Record at BCI to determine and finalize such an arrangement. BCI reserves the exclusive and unconditional right to issue final approval as to the terms & conditions of the employee agreement with the assistant to the Broker Associate or Salesperson.










BRANCH LOCATION POLICY AND PROCEDURE OPTIONS Each branch has the option to obtain user IDs, passwords, etc. from third party vendors for the specific purpose of obtaining faster overall efficiency regarding general operations ONLY with the permission of the Broker of Record at BCI. The primary office reserves absolute and unconditional rights to approve, modify, or delete said user ids, passwords, etc. the individual branch must initially contact the primary office in writing indicating their desire to proceed as outlines above in this paragraph. Each individual branch fully acknowledges that the primary office does provide administration services to obtain and accommodate user ids, passwords, etc. Moreover, the primary office expresses specific interest in functioning administratively in this capacity with the individual branch engaging in the administrative duties in the above referenced capacities primarily as a direct result if the primary offices inability to do so in a time defined as “reasonable”. Said definition is normally five working days. BRIEF WRITTEN PROFILE OF COMPANY AND OWNERSHIP BCI Corporate Headquarters is located at 9595 Wilshire Blvd., #900, Beverly Hills, CA 90212, and is a California S Corporation incorporated on October 30, 2000. BCI stock is owned 100.00% by a single shareholder, David Parry “Broker of Record.” Mr. Parry also holds a valid and active CA Real Estate Officers License #01344191, which is legally attached to BCI. Mr. Parry is also a licensed real estate broker #01242412 as an individual with the CA BRE. The primary office hosts the accounting and administration departments. The company bank accounts records exist solely at the primary office. Branch offices are not permitted to have BCI bank accounts. Additional offices are CA BRE Branch Locations that have Branch Managers all of whom are independent offices responsible for their own expenses but overseen ultimately (professional supervision) by the primary office in terms of adherence to BCI company policy and Department of Real Estate Guidelines on a per state basis when applicable. COMPLIANCE MANUAL This document was prepared for BCI by Pamela J. Strickland, a private consultant with extensive experience as a broker in the state of California as well as an individual with a tremendous knowledge about CA BRE guidelines. This manual was provided physically to the corporate office of BCI by Ms. Strickland on March 28, 2007. BCI has incorporated this manual into its overall business practices. Broker Associates and Loan Officers will receive a copy of this manual in conjunction with the receipt of the BCI Employment Agreement, signed by the employee as defined by CA BRE guidelines.










BCI reserves the right to provide this compliance manual via email, fax or physical copy sent via U.S. Mail. Individual items in this compliance manual may supersede or substitute for other items in the BCI Employment Agreement. CREDIT REPORTS BCI company policy dictates in no uncertain terms that all Broker Associates, Salespersons and their administration and coordination teams are solely responsible for any costs incurred regarding credit report fees. These fees include single, dual and tri-merge as well as “rapid rescoring” or interpretative phrases that would apply to “rapid rescoring” as a concept. All credit report fees that are outstanding after 30 days are due and payable. There shall be no day grace period. After 30 days from the date of the report or credit report activity (rapid rescoring, etc.), the Broker Associate, Salespersons and their administration and coordination teams are officially in arrearage and delinquent. BCI shall send invoices after 305 days from the date of the credit report or credit report activity to the Broker Associate, Salespersons and their administration and coordination teams with a demand for immediate payment. If that the Broker Associate, Salespersons and their administration and coordination teams do not pay BCI within 30 days from the date of the credit report or the credit report activity, BCI reserves the exclusive, unilateral and unconditional right to completely withhold ALL commission earnings due to the Broker Associate or Salespersons “until these fees are fully reimbursed to BCI” and moreover, BCI reserves the exclusive, unilateral and unconditional right to deduct any and all credit report fees or credit report activity fees from the W-2 salary of any BCI employee who has incurred credit report fees or credit report activity fees. DEPARTMENT OF REAL ESTATE BCI has administratively and specifically selected particular guidelines that are of extreme importance regarding the management of the company. The following information indicates the applicable statutes and codes (it is the responsibility of all Broker Associates, Salespersons working with BCI to read the statues below):










REGULATIONS

OF THE

REAL ESTATE COMMISSIONER

As contained in the California Code of Regulations

TITLE 10. INVESTMENT CHAPTER 6. REAL ESTATE COMMISSIONER

(Article 1 repealed effective July 31, 1983.)

Article 2: General Definitions and Short Form References

2725. Broker Supervision 2726. Broker-Salesman Relationship Agreements. 2728.5 Broker/Salesman Operating from Branch Office. 2729. Record Retention – Optical Image Storage. 2729.5 Record Retention – Uniform Electronic Transactions Act. 2753. Retention of Salesperson’s License Certificate.

EMPLOYEE (DEFINITION OF) Per the CA BRE, ALL licensed loan officers/real estate agents or broker associates are de facto employees of the primary office although there is no W-2 salary and compensation is strictly commission based. BCI acknowledges that the BRE perceives and defines 1099 Miscellaneous Independent Contractor, Loan Officer, Real Estate Agents or Broker Associates as Employees although there is no “actual” W-2 status required by the BRE. FULL DISCLOSURE Employee (W-2 or 1099) shall provide complete and full disclosure of previous, present and pending civil and/or criminal litigation, convictions, IRS audits, and any other investigations which have legal and/or financial ramification(s) or implication(s). The primary office has unilateral authority to review all information and make the final decision as to whether the Employee (W-2 or 1099) is retained and/or terminated by the primary office.










HOLD HARMLESS AGREEMENT Employee (W-2 or 1099) as defined by CA BRE guidelines, State of California guidelines, shall hold harmless, unconditionally and in perpetuity, BCI, including all employees, associates, independent contractors, third party vendors, legal counsel, any/all of BCI “branch offices.” This includes but is not limited to employees, associates, independent contractors, third party vendors, legal counsel (including their staff), appraisers (including their staff), escrow officers (including their staff), title officers (including their staff), wholesale bank/ direct lenders (including their staff), David Parry, individually and in relation to his ownership of BCI. Employee acknowledges in no uncertain terms that he/she/they are in complete agreement with this clause and further acknowledge that he/she/they are signing said agreement without coercion or duress. Furthermore, employee forfeits, unconditionally, and in perpetuity any/all rights to litigation or arbitration and do so without coercion or duress. Employee (W-2 or 1099) as defined by CA BRE guidelines, State of California guidelines, shall reimburse the primary office for all damages, financial or otherwise, if there is litigation and/or resolution of litigation caused by the branch office. Charges covered for reimbursement to the primary office include but are not limited to “negligent supervision.” Employee agrees to reimburse BCI for any/all legal fees and/or fines incurred by BCI resulting from the activities of the Employee. INSURANCE: ERRORS & OMISSIONS, WORKMAN’S COMPENSATION, GENERAL LIABILITY BCI currently carries $2,000,000 (USD) in E&O coverage. The agent (Loan Officer of Record, Real Estate Agent of Record) or their teams causing a lawsuit is responsible for the deductible in full and BCI reserves the unilateral and unconditional right to require the Loan Officer of Record, Real Estate of Record or their team member responsible for the lawsuit to reimburse BCI in full within 30 business days for any fees incurred. NON-SOLICITATION All loan officers defined as Broker Associates, Salespersons and their respective administration or coordination teams agree unconditionally to not solicit existing BCI employees, current Broker Associates, current Salespersons and their respective administration or coordination teams regarding working for other mortgage brokerages, mortgage banks, banks (wholesale, retail or private banking divisions), private investor hard money lenders or credit unions.










If that a Broker Associate or Salespersons and their respective administration or coordination teams elect to start their own business in a “related” field (as outlined above), said Broker Associate or Salespersons and their respective administration or coordination teams shall adhere to this non-solicitation agreement. This non-solicitation agreement shall apply for a minimum of three years after a Broker Associate or Salespersons and their respective administration or coordination teams have officially ceased working with or at BCI PAYROLL & ADMINISTRATIVE COMPLIANCE All loan officers including Broker Associates and Salespersons and their respective administration and coordination teams agree unconditionally and in perpetuity to comply with the BCI corporate policy, which specifically dictates that ALL mortgage loan files are the property of BCI. This is consistent with BCI’s internal policy and the California Department of Real Estate requirement that brokerages retain all records for a minimum period of three years. ALL files shall be sent to the primary office of BCI within 5 business days after the recording of the loan or close of the transaction. BCI specifically requests that the file be sent electronically (ideally scanned and sent) via email directly to [email protected] or to http://www.settlementroom.com (individual instructions to follow on a per case basis at the sole and unilateral discretion of BCI). Failure to provide a complete copy of the entire file is a breach of BCI internal policy and California Department of Real Estate guidelines & regulations. All loan officers including Broker Associates and Salespersons and their respective administration and coordination teams shall not be charged any fee by BCI “IF” they comply with the above. If that a loan officer including Broker Associates and Salespersons and their respective administration and coordination teams sends in a physical file to BCI, which has NOT been scanned or electronically sent as well, BCI shall charge an administration fee of $50.00 per file to the loan officer including Broker Associates and Salespersons and their respective administration and coordination teams. This fee shall be sent via invoice from the BCI Accounting Department and is due in full within 10 business days from the date of the invoice.





http://www.settlementroom.com/







Failure to pay this $50.00 shall result in disciplinary action from BCI to be determined at that specific time and can result in the termination of the loan officer including Broker Associates and Salespersons and their respective administration and coordination teams and moreover noted as a “compliance violation”, which BCI reserves the exclusive and unilateral right to disclose to the California Bureau of Real Estate “Licensing Department”. QUALITY CONTROL: ACCOUNTING/ BOOKKEEPING & LEGAL All mortgage loan/real estate commission checks with Final HUD-1’s are required to be sent to the primary office for review and check disbursement. This disburse process is analytical based upon standard accounting and bookkeeping practices. Any BCI employee or Branch location, discovered by the primary office that has engaged in the cashing of checks issued to BCI, shall be audited, investigated, reported to the CA BRE and law enforcement and prosecuted to the fullest extent of the law. Any BCI employee or Branch location, discovered by the primary office that has engaged in the practice of diverting or holding checks issued to BCI, shall be audited, investigated, subject to internal disciplinary action, possibly resulting in being reported to the CA BRE and law enforcement and prosecuted to the fullest extent of the law. If of any need for clarification, dispute or discovery of impropriety, BCI conducts internal audits. If that said audit requires further due diligence, the accounting firm of the Avitus Group, is available. Avitus Group also prepares the tax returns for BCI and Mr. Parry. If of litigation, BCI has in-house counsel with David R. Lira, Esq. of Girardi/Keese, Lawyers, based in Los Angeles, CA. QUALITY CONTROL: KEEPING OF RECORDS / FILES All Branch offices, at their sole expense, must maintain complete records of all files (funded or otherwise) for a period of at least three years per CA BRE guidelines and five years for appraisals. Failure to do so is in violation of the CA BRE and BCI policy.










Any request to produce a file at any time by the main BCI office must be complied with and physically provided to the primary office with 24 hours. Failure to do so is in violation of BCI policy and BCI attorneys shall be notified immediately of said breach. All Branch offices / Employees shall provide copies of ALL files to BCI prior to receiving commission compensation from BCI for BCI internal QC compliance and adherence to RESPA. QUALITY CONTROL: LICENSING All BCI real estate agents and Branch locations shall possess current and valid CA BRE licenses. All Branch Managers shall maintain strict control regarding unlicensed persons (transaction coordinators, support staff) against said persons soliciting and/or negotiating real estate transactions that require proper licensing to engage or continue activity in the overall process. QUALITY CONTROL: MISSION STATEMENT BCI has a specific and clear focus to maintain a state of the art management style interfaced with high technology via computerization, designed to produce successful real estate transactions. Combining a small staff with "hands on management", the permanent goal will be the maintaining of a top quality overall operation fueled by maximum efficiency and intelligent adaptability. Regular executive management reviews of company financial strength, administrative policy and employee performance will be done to promote and assure the highest degree of complete business success. Morality and Ethics are key components of the BCI fiber. Ongoing management, accounting and legal advice will be a significant part of the general operation of BCI., Inc. QUALITY CONTROL: REAL ESTATE FRAUD; AUDIT-INVESTIGATION PROCEDURES All loan application packages and employee agreements have an absolute policy stipulating a ZERO TOLERANCE AGREEMENT in regard to real estate fraud and mandatory, unconditional compliance with R.E.S.P.A. BCI will absolutely and unconditionally not allow, neither accommodate nor condone real estate fraud on any level whatsoever. Upon discovery of any activity by any BCI employee that there may be real estate fraud committed, BCI will immediately conduct an extensive internal audit and investigation, comply fully with CA BRE (or applicable State agency), escrow and title companies, and issue a notice of suspense verbally and/or in writing to any BCI employee or branch to cease all operations on part of and regarding BCI until the matter is fully resolved in writing. Said BCI employee or branch fully waives any right to contest this suspension which in turn may result in revocation as an employee or branch by BCI.










BCI reserves the sole and independent authority to permit BCI employees involved in any fraud related allegation or incident to be allowed re-instatement at BCI. Said re-instatement will also require an acknowledgement in writing by the BCI employee or Branch that they are on probation with BCI and said probation will be potentially removed after a minimum of six months of complete cooperation by the BCI employee or branch with the primary office of BCI and without further incident. BCI primary office reserves the exclusive right to disclose (this) information to the CA BRE (or applicable State agency) or law enforcement, escrow and title companies. A second incident or allegation relating to real estate fraud, regardless of exoneration, shall result in termination of the BCI employee or Branch location. Any BCI employee or Branch location that intentionally, recklessly, knowingly, or willfully engages in real estate fraud, misrepresentation, misconduct, etc. shall be immediately audited and investigated internally by BCI with BCI reserving the unilateral right to remand the matter to the CA BRE (or applicable State agency) or law enforcement, escrow and title companies. BCI Executive Committee shall unilaterally decide post audit and investigation whether a BCI employee or Branch location was responsible for actions relating to real estate fraud that were intentional, reckless, knowing, or willful. Should the decision by the executive committee find that none of these were factors, that is the only exception in which probation may be granted to the BCI employee or Branch location During any period where there is an ongoing audit or investigation, BCI primary office reserves the unilateral right to suspend all files from BCI employees or Branch locations, both internally at BCI and at the escrow and title companies. Additionally, any failure on the part of the BCI employee or Branch locations to cooperate with the primary office of BCI shall result in immediate termination. At said time, all outstanding files will be audited and investigated by BCI primary office and all real estate commission checks shall be frozen with disbursements to BCI employees or Branch locations occurring only after BCI primary office has fully resolved the matter. BCI unilaterally reserves the right to have its accounting and legal firms participate in this process. BCI unilaterally reserves the unconditional and absolute right to terminate any employee or branch location at any time with or without cause. This policy is agreed to in writing here by all BCI employees and Branch Locations.










BCI also unilaterally reserves to right to remand any matter relating to real estate fraud to law enforcement. QUALITY CONTROL: REAL ESTATE TRANSACTIONS BCI allows its Branch locations to either engage the services of BCI approved Independent Transaction Coordinators with the requirement that the transaction coordinator have at least 2 years’ experience or have coordinated at least 100 files for a licensed real estate brokerage, or if inexperienced, the aforesaid requirements are waived contingent upon the Transaction Coordinator being under absolute and direct supervision by the Branch Manager. Branch locations who choose to hire an “in house” loan administrator/coordinator or transaction coordinator may not hire said loan administrator/coordinator or transaction coordinator if he/she has ever been involved in real estate fraud or currently involved in any litigation relating to real estate. Upon discovery by the primary office of BCI that any loan administrator/coordinator or transaction coordinator has ever been involved with the aforesaid, or with real estate fraud even on the allegation level, said loan administrator/coordinator or transaction coordinator will be terminated immediately with BCI reserving the unilateral right to remand the matter and the loan administrator/coordinator or transaction coordinator to law enforcement. All BCI Branch Managers are required to report any impropriety regarding loan administrator/coordinator or transaction coordinator activity to the primary office with 24 hours. Failure to do so shall be construed by the primary office the Branch Manager is potentially engaged in collusion with said transaction coordinator and as such, said Branch Manager may be included in any BCI disciplinary action and/or being reported to the CA BRE or law enforcement. BCI reserves the exclusive and unilateral right to control, assign, regulate, and restrict all loan administrator/coordinator or transaction coordinator activity. SEXUAL HARRASSMENT & DISCRIMINATION All allegations and incidents pertaining to sexual harassment & discrimination shall be reported IMMEDIATELY to the Broker of Record. Upon review of the matter by the Broker of Record, in-house legal counsel shall be consulted regarding termination of the employee from BCI, reporting the incident(S) to the CA BRE, filing of civil litigation, and filing of criminal litigation.










Moreover, the matter will be thoroughly chronicled, and unaltered records shall be maintained by the primary office regarding the matter TERM OF EMPLOYMENT W-2 employees have an “at will” arrangement in which any employee may at anytime resign or be terminated by the main or branch office. Both employee and employee shall afford each other no less than one weeks’ notice regarding voluntary or involuntary departure. Any existing disputes shall be resolved in good faith either internally within BCI/BCI Realtors or by a neutral arbitrator. Severance pay shall never exceed two weeks and if applicable, is exclusively the elective decision of BCI ownership. All W-2 employees of BCI hereby agree unconditionally and in perpetuity to resolve all issues including but not limited to financial disputes, administrative complaints, legal problems, etc. through a neutral, third party arbitration entity or through mediation. Said resolutions from either arbitration or mediation shall be final and binding in nature. All W-2 employees as referenced above hereby forfeit all rights unconditionally and in perpetuity to file a lawsuit or litigate or engage in litigation regarding any or all of the above. Judicial elective remedy, i.e. “courts of law”, is thereby not a permitted option pursuant to this agreement. Specific verbiage: All W-2 employees “will not” and “will never” sue BCI, et al. (ownership, shareholders, broker of record as an individual, etc.). 1099 Miscellaneous Income Independent Contractors agree unconditionally in perpetuity to “hold harmless” BCI, including but not limited to its principals, stockholders, management, salespersons, broker associates, transaction coordinators, administrators, clerical personnel, third party vendors. All 1099 Miscellaneous Income Independent Contractors shall adhere to the Internal Revenue Service 20 Checkpoints. Said hold harmless clause shall also require that there shall be no litigation against BCI et al (see above). 1099 Contractors and BCI shall afford each other no less than one weeks’ notice regarding voluntary or involuntary departure. 1099 Contractors acknowledge unconditionally there is no coercion or duress in agreeing to these terms. LENDER PAID COMPENSATION/YIELD SPREAD PREMIUM/REBATE WHOLESALE LENDER OR INVESTOR “CHARGEBACKS” AKA “LPC OR YSP OR REBATE RECAPTURE” BCI is a mortgage brokerage. It is not a mortgage banking operation. It does not have a correspondent status with wholesale lenders. It does not have a warehouse line.










Generally, mortgage brokerages simply originate loans and after funding and recording of a loan, the mortgage brokerage has no further obligation. This would apply to loan servicing and obligation to pay back the loan as well If of borrower default. Whereas wholesale lenders sell large bundles of loans to the secondary market (either Fannie Mae or Freddie Mac or portfolio in nature), some wholesale lenders have instituted policies which require the mortgage brokerage of record to repay that wholesale lender for all Lender Paid Compensations, Yield Spread Premiums/rebates that the mortgage brokerage of record received from that wholesale lender. Several reasons for these policies include but are not limited to:

1) “Early” loan pay-off resulting from the sale or refinance of the property.

2) “Early” loan pay-off can be individually defined and outlined by each wholesale lender.

3) A “timeframe” can be applied to “early” loan pay-offs by a wholesale lender’s guidelines.

4) Many wholesale lenders will require a mortgage brokerage that has received a Lender Paid Compensations/Yield Spread Premium/rebate from that wholesale lender to pay back the Lender Paid Compensations/Yield Spread Premium/rebate in part or whole “IF” the loan is retired, paid off or assigned within a specific period of time (usually 3 to 6 months and in some cases, up to 12 months; in rare cases “in perpetuity”).

5) If that there is a demand by a wholesale lender for BCI to pay back a Lender Paid

Compensations/Yield Spread Premium/rebate, based upon the above information (paragraphs 1 through 4), the Loan Officer of Record is responsible for paying back BCI in the exact amount of the compensation and commission percentage the Loan Officer of Record initially received from BCI If BCI notifies a Loan Officer of Record that said repayment is necessary, the Loan Officer of Record is completely responsible to pay BCI the entire amount of monies owed based upon what the Loan Officer of Record received and these monies must be paid within 10 business days.

a. The Loan Officer of Record is completely responsible for adhering to the company policy

of BCI which specifically requires that all loan officers utilize the custom disclosures created by BCI. The Certification & Acknowledgement Disclosure specifically outlines in clear verbiage that the borrower(s) is responsible for reimbursing BCI for any Lender Paid Compensations/Yield Spread Premium charge backs or Rebate Recapture.










b. Although BCI’s corporate policy and accounting practices will engage actively and

aggressively in the collection of any monies related to a Lender Paid Compensations/Yield Spread Premium charge back and as such, legally pursue the borrower accordingly, the Loan Officer of Record is “primarily responsible” for reimbursement of any Lender Paid Compensations/Yield Spread Premium charge back and shall remand all monies paid by BCI to BCI upon receiving written notice. Said monies shall be paid within 5 business days after the loan officer receives written notice from BCI to pay said monies to BCI

6) If that the Loan Officer of Record fails to pay BCI their percentage of the Yield Spread

Premium/rebate within 10 business days from notification, the Loan Officer of Record is in violation of the employment agreement with BCI.

a. BCI will then institute collection actions and proceedings which may involve litigation

against the Loan Officer of Record with the intent to collect the monies owed pursuant to the Loan Officer of Record’s commission portion of the Lender Paid Compensations/Yield Spread Premium/rebate.

7) BCI preserves the right exclusively and in perpetuity to withhold any commissions due to the Loan Officer of Record from “other” loan files or real estate transaction files with the express purpose of such action unilaterally designed to reimburse BCI in full in direct relation to BCI paying the wholesale lender the exact monies due from any Lender Paid Compensations/Yield Spread Premium/rebate chargeback.

8) BCI loan disclosures require the borrower to reimburse BCI for any Lender Paid

Compensations/Yield Spread Premium/rebate chargeback within 30 days after BCI receives notice of monies due from the wholesale lender directly related to the funding of the borrower’s loan.

a. The Loan Officer of Record on the transaction at hand or in question is completely

responsible without exception for making certain that the borrower is provided with this disclosure, signs it in good faith and provides it to BCI as part of the loan package in direct relation to the borrower’s loan.










b. If that a Loan Officer of Record on a particular transaction “cancels” a loan or a borrower

“cancels” or “notifies the Loan Officer of Record that the file is cancelled”, the Loan Officer of Record has the absolute responsibility of notifying the wholesale lender related to that particular mortgage loan file for the express purpose of officially cancelling the file with the intent to provide the wholesale lender with the ability to “cancel” their file internally and with any applicable secondary market or buyer of that loan. If that the Loan Officer of Record has “locked” the loan with a wholesale lender, the Loan Officer of Record has an absolute fiduciary duty to notify the wholesale lender and officially cancel the loan. Moreover, the Loan Officer of Record must determine with that wholesale lender whether there will be any type of financial penalty based upon the loan having been locked. If that there will be a financial penalty, the Loan Officer of Record is completely responsible to reimburse BCI for the entire amount of penalty money imposed by the wholesale lender. Said reimbursement shall be provided by the Loan Officer of Record to BCI within 10 business days from the date BCI receives notice from the wholesale lender that monies are due.

Internal Revenue Service “20 Check points”

Definition:

“INDEPENDENT CONTRACTOR/1099 AGREEMENT”

(NOT REQUIRED FOR W-2 EMPLOYEES)

1. An “Independent Contractor/1099 Miscellaneous Income Person” (henceforth referred to as “Individual”) is NOT REQUIRED to take any instructions whatsoever from BCI/ management staff (henceforth referred to as “BCI”) regarding when, where, and how work is to be done.










2. The “Individual” receiving any training (“activity”) whatsoever from BCI shall only be done at the request, demand or mandate of the “Individual.” The “Individual” does so with the complete understanding and agreement that receipt of said training (“activity”) is “absolutely optional” by the “Individual” and “solely at the unilateral discretion and request” from “Individual” with the complete understanding and agreement by the “Individual” that said training (“activity”) engaged in or provided by BCI does not constitute a function of an employee / W-2 personnel. BCI shall not initially “offer” any training (“activity”) to “Individual” whatsoever. BCI shall only “respond” to the request, demand or mandate of the “Individual” to engage in or provided said training (“activity”) to the “Individual.”

3. Success or continuation of BCI is NOT dependent on the type of service/work provided by the “Individual.”

4. “Individual” is not required to personally perform the contracted services with BCI. “Individual” has sole and unilateral discretion to hire its own additional employees or independent contractors (who shall report exclusively to “Individual” and not BCI whatsoever). “Individual” may hire its own additional employees or independent contractors without any approval whatsoever from BCI.

5. Hiring, supervising, or paying “other” individuals (“activity”) by BCI to assist the “Individual” in completing the project stated in the contract will only be done if requested, demanded or mandated by the “Individual.” This “activity” shall only be done with the sole and unilateral discretion of the “Individual.” There shall not be any solicitation, recommendation, suggestion or influence whatsoever by BCI regarding this “activity” and should said “activity” occur as requested or mandated by the “Individual”, the “Individual” does so with the complete understanding and agreement that said “activity” engaged in by BCI does not constitute a function of an employee / W-2 personnel.










6. Any “continuing relationship” between BCI and the “Individual” shall be based exclusively upon the understanding and agreement by the “Individual” that the “Individual” has requested, demanded or mandated to BCI that “Individual” understands and agrees that the “continuing relationship” may be terminated at any time without cause by either BCI or the “Individual”. Moreover, “Individual” fully understands and agrees that “prevailing employee / W-2 concepts” such as “overtime wages”, employee / W-2 “bonuses”, or “severance pay” are not applicable whatsoever and THERE SHALL BE NO COMPENSATION PAID WHATSOEVER FOR THESE ITEMS to the “Individual” whereas these functions are related to and by products of an employee / W-2 personnel and that “Individual” is NOT an employee / W-2 personnel of BCI.

7. “Individual” is NOT REQUIRED by BCI to work set hours. 8. “Individual” is NOT REQUIRED to work full time at BCI. 9. Work performed on company premises by “Individual” is done so with the understanding and

agreement by the “Individual” that “Individual” may choose solely and unilaterally to perform work on BCI premises or elsewhere without any restriction by BCI.

10. “Individual” is NOT REQUIRED to follow a set sequence or routine in the performance of his work at/by/with BCI

11. “Individual” is NOT REQUIRED to give/provide BCI reports regarding his/her work with the exception of independently generated “BILLING INVOICES.” Said invoices shall be solely used by the Accounting Department of BCI (in conjunction with standard Accounting Practices) to issue related monies due to the “Individual” by BCI for services rendered/work performed by “Individual.” The ““Individual” may use BCI property (including but not limited to BCI personnel, computers, fax machines, telephones, office supplies) to prepare and submit his/her independently generated “BILLING INVOICES.” By doing so, “Individual” fully understands and agrees that said function does not constitute a function of an employee / W-2 personnel.










12. “Individual” shall have sole and unilateral discretion to be paid by BCI during the “contract period” (which may be “specific” in terms of date/s or “ongoing”) as “Individual” by the hour, week, or month or whatever billing period/invoice the “Individual” chooses or deems satisfactory to the “Individual.” The “Individual” reserves the exclusive right to change his/her billing period/invoice at any time without the permission of BCI. The “Individual” fully understands and agrees by whichever “method of payment for services rendered/work” by the “Individual”, said “method of payment for services rendered/work” does not constitute a function of an employee / W-2 personnel. “Individual” reserves the exclusive right to remit billing invoices to BCI for services rendered/work for BCI as a corporation, partnership, sole proprietorship/DBA or individual without permission from BCI.

1. Any/all financial disputes between BCI and “Individual” (“parties) shall be resolved in good faith by neutral and impartial Federal/State/County/City licensed Arbitration whereupon said resolution shall be binding and final between “parties.”

13. “Individual” is NOT reimbursed by BCI for business/travel expenses. 14. BCI will supply the “Individual” with needed tools or materials ONLY at the request, demand or

mandate by the “Individual” with the complete understanding and agreement by the “Individual” that said “supply” or “activity” engaged in by BCI does not constitute a function by an employee of W-2 personnel.

15. “Individual” fully understands and agrees that any “significant investment” by BCI in/with/for any facilities used by the “Individual” to perform services are the sole property of BCI and completely optional for use by the “Individual” with the complete understanding and agreement by the “Individual” that said “supply” of these facilities or “activity” engaged in by BCI does not constitute a function of an employee / W-2 personnel.

16. “Individual” is free from suffering a loss or realizing a profit based on his/her work at/by/with BCI.

17. “Individual” may perform services/work for ANY company without any restriction whatsoever by BCI.

18. “Individual” may/may not limit the availability of his/her services to the general public completely based upon the sole and unilateral discretion of the “Individual.” BCI shall have no right to impose or restrict this provision whatsoever.










19. BCI reserves the right to discharge (“at will cessation”) the “Individual” WITH/WITHOUT CAUSE OR ADVANCE NOTICE WHATSOEVER to the “Individual.” This may occur during, and/or at the completion of, and/or after the “contract period” between BCI and the “Individual” has completed, with no penalties to BCI.

20. “Individual” may terminate (“at will cessation”) his/her services with BCI WITH/WITHOUT CAUSE OR ADVANCE NOTICE WHATSOEVER. This may occur during, and/or at the completion of, and/or after the “contract period” between BCI and the “Individual” has completed, with no penalties to “Individual.”

NET BRANCH POLICIES & PROCEDURES

ACCOUNTING Loan Officer / Real Estate Agent Commission Splits are TBD% to net branch / TBD% to primary office (corporate office) based on origination and rebates. Miscellaneous fees are not commissioned by primary office. Processing is generally outsourced. COMMISSION DISBURSEMENT SCHEDULE is issued by primary office to the net branch and/or loan officer/real estate agent of record on every file. Accounting processing fee is $59.00 per file. City Tax is deducted from all commission checks in the amount of 6.00% per $1,000.00 of revenue. There are NO desk charges, NO monthly charges, NO quarterly charges, and NO Annual charges imposed upon the loan officer/real estate agent or broker associate. Payroll policy is to issue payroll on a weekly basis.










APPRAISALS Appraisals can be paid by borrowers via check to BCI, which will in turn, pay the appraiser directly within net 7 days. Invoices from appraiser are required to be received by primary office OR C.O.D. to appraiser by borrower on site. Loan Officers are responsible for guaranteeing payment for all appraisals they order.

ABSOLUTELY NO “SPEC” APPRAISALS WITH MONIES PAID AT CLOSE OF ESCROW (P.O.C.) UNLESS THE LOAN OFFICER “GUARANTEES” THE APPRAISER HIS/HER FEES IN A TIMELY FASHION (USUALLY AT CLOSE OF ESCROW) but not to exceed 45 days. BCI will pay all appraisers if necessary and in turn will invoice the loan officer who is obligated to pay the entire appraiser if the borrower does not.

BANKING There shall be no bank accounts established by the net branches in the name of BCI or BCI Discovery of any bank account existing that has not been authorized by BCI shall be immediately referred to law enforcement agencies for prosecution.

CREDIT All branch locations must use CREDCO CORELOGIC CREDIT or EQUIFAX CREDIT SERVICES and SET UP “Requested By” person. This allows for tracking and collection of fees by primary office. The requesting person must enter their name or their initials into the “loan number” box for tracking purposes. Credit Reports currently range from $20.00 to $40.00 (subject to change) per tri-merge for individual reports and married couple reports.

• These reports are run through Credco CoreLogic.

• Payment is due on a Net 10-day basis, unless a credit card by the Borrower of Loan Officer is utilized to pay.










• Borrowers shall issue provide a credit card for immediate billing or issue a valid personal check for credit reports to BCI.

• Said checks shall be sent to primary office, Attn.: Accounting Dept.

• All loan officers are responsible for either collecting the monies or paying for the credit reports themselves within net 10 days.

• PLEASE DO NOT DROP THE BALL ON THIS SIMPLE TASK AND MAKE THE PRIMARY OFFICE “CHASE” CREDIT REPORT MONIES.

• The accounting department will invoice all loan officers, processors, coordinators and administrators for any credit reports they have run which remain unpaid 30 days after the date of the report. These invoices must be paid immediately upon receipt.

INSURANCE All branch locations pay primary office $69.00 per file for Mortgage transactions and $125.00 for Real Estate Transactions for legal/insurance/admin to the primary office.

LEGAL All branch locations must IMMEDIATELY (within 24 hours aka 1 business day or if during a weekend on the immediate following Monday) contact the primary office in event of serious problems, lawsuits, etc.

MISCELLANEOUS Weekly Payroll: All checks, Final Settlement Statements and files are due by 12:00pm on Thursdays in order have disbursements prepared, payroll processed and have checks available to Loan Officers, Real Estate Agents, Loan Processors and Transaction Coordinators the next day on Friday at 3:00pm.

In-House Processing: Is subject to approval by the primary office for any branch that elects to do so. Satellite Processing: Independent processors have been approved and are available. Other:

• Direct Access to Wholesale Reps

• Website Provides Complete Operations Access (Forms, Rate-Sheets, Etc.)

• Emailing of Rate sheets and loan products is available

• D.O. / D.U. through Fannie Mae










• Zero Tolerance for Loan Fraud: This is strictly enforced

• Real Estate Division Available (Access to MLS): BCI Realtors.

PHONES & CORRESPONDENCE All branch locations must answer the phone “Building Capital/BCI” per the CA BRE. All branch locations must have an outgoing message on their answering service that identifies “BCI/BCI” per BRE. Land lines are no longer required for all branch offices. Mobile phones are acceptable. All loan applications (1003) and disclosures shall reflect the actual branch location address per CA BRE. All stationary shall reflect the actual branch location address per CA BRE. E-mail addresses are available upon request with buildingcapital.com OR loan officers may use their current e-mail address. Rate sheets and Loan Product Flyers are available through email.buildingcapital.com (see BCI website). BCI has a “paperless” system, i.e., NO FAXED RATES.

PROCESSING All branch locations must use BCI “Approved Processors.” These processors have BRE net branch licenses as well, are provided (made available) to the branch offices and are listed on the BCI Staff List as Approved Independent Processors. If of unsatisfactory service by any processor the net branch is responsible to immediately notify the primary office.










SET UP REQUIREMENTS

• Must be answered “Building Capital/BCI”

• MOBILE PHONES FOR BRANCHES ARE PERMITTED AS PRIMARY PHONE NUMBER.

• Voice mail on primary phone must state: “Thank you for calling the (City name) office of Building Capital/BCI, etc.”

• Stationary (BCI, Inc / BCI Realtors letterhead, etc.) is provided upon request to the employee via e-mail attachment from primary office

STORAGE OF FILES All branch offices must STORE physical loan files for 3 years per BRE requirements, If/when the loan officer ceases to work with BCI, the loan officer must turn over the physical files unconditionally and unilaterally to the primary office to comply with BRE storage guidelines. The primary office will scan all closed or cancelled files and retain these records for 3 years per BRE requirements. Point Central aka PDS (Point Data Systems) is used by the primary office which integrates the 1003 Loan Applications from each branch with the primary office server. This insures compliance and quality control from the Bureau of Real Estate guidelines, Wholesale Lender’s policies and banking regulations.

HELPFUL INFO & OVERVIEW OF NET BRANCHES

What is a net branch?

Net Branch has become a term loosely used in the mortgage industry lately. So-called Net Branches are becoming more and more popular in the mortgage business across the United States. Often brokers attempt to expand their business by employing or contracting with loan originators who work from their homes or in an existing licensed or unlicensed office space located in another part of the city, county or state. They call these locations net branches.










BRE’s view of licensing requirements.

The Bureau of Real Estate considers a Net Branch or Net Branches to be branches of the primary office. The relationship is formed when smaller independent mortgage brokers or other businesses enter into an agreement with a larger mortgage broker to form a network of offices under the larger mortgage broker. The smaller independent businesses agree to become branches of the larger mortgage broker. The smaller independent businesses retain control of their companies in the network and run the day-to-day operations of their companies.

Ramifications of violations by a branch office.

Branch offices operate under the bond and license of the primary office. Violations by one branch impact the license and bond for the entire branch network. A serious violation by a single branch office could result in an action by the BRE, including fines or revoking the license of the primary office, and thus the license under which all the net branches operate. The result would be that all the branches would be unable to operate until they were re- licensed, and such re-licensure would not be automatic. For this reason, good audited internal routines and controls that ensure compliance with state law are essential to a company that operates under a net branch structure.

Net branches must be licensed as stipulated under CA BRE Form RE203. This allows the mortgage broker to apply to the BRE to establish more than one branch office under the same or different names as the primary office.

When a person is “holding him or herself out as being able to make loans from a fixed physical location,” that location must be licensed. It is a violation of the CA BRE to have employees or contractors working from their home or a remote office unless that location is licensed as a branch of the primary office.

It is the view of the BRE that a branch office is directly tied to the primary office. Activities in the branch are the responsibility of, and create a liability for, the primary office, both in terms of its bond and its license. Regardless of the Net Branch arrangement, there is only one licensee and one surety instrument covering the primary office and the branch). A net branch cannot directly engage loan originators (whether independent contractors or employees).










The licensed entity or primary office must establish and maintain these individual relationships. The branches are part of the primary office and therefore their activities, conducted under the Act, reflect upon and may place in jeopardy the primary office.

Branches are allowed.

A licensee may apply to license the locations from which loan originators work by contacting BCI primary office.

In summary, the BRE holds the opinion that the concept of Net Branching is accommodated under the Mortgage Broker Practices Act. However, Net Branches are subject to the same standards required of all branches.

If you have any questions about the BRE point of view on this matter, contact us in writing at the address on the letterhead above.

California Bureau of Real Estate Addendum 2725. Broker Supervision. A broker shall exercise reasonable supervision over the activities of his or her salespersons. Reasonable supervision includes, as appropriate, the establishment of policies, rules, procedures and systems to review, oversee, inspect and manage:

(a) Transactions requiring a real estate license.

(b) Documents which may have a material effect upon the rights or obligations of a party to the transaction.

(c) Filing, storage and maintenance of such documents.

(d) The handling of trust funds.

(e) Advertising of any service for which a license is required.










(f) Familiarizing salespersons with the requirements of federal and state laws relating to the prohibition of discrimination.

(g) Regular and consistent reports of licensed activities of salespersons.

The form and extent of such policies, rules, procedures and systems shall take into consideration the number of salespersons employed and the number and location of branch offices.

A broker shall establish a system for monitoring compliance with such policies, rules, procedures and systems. A broker may use the services of brokers and salespersons to assist in administering the provisions of this section so long as the broker does not relinquish overall responsibility for supervision of the acts of salespersons licensed to the broker.

2726. Broker-Salesman Relationship Agreements. Every real estate broker shall have a written agreement with each of his salesmen, whether licensed as a salesman or as a broker under a broker-salesman arrangement. The agreement shall be dated and signed by the parties and shall cover material aspects of the relationship between the parties, including supervision of licensed activities, duties and compensation.

2728.5. Broker/Salesman Operating from Branch Office. A real estate broker acting in the capacity of a salesman to another broker under written agreement may perform acts for which a license is required on behalf of the employing broker at any place of business at which the employing broker is currently licensed to perform acts for which a real estate license is required.

2729. Record Retention – Optical Image Storage. (a) A real estate broker may use electronic image storage media to retain and store copies of all listings, deposit receipts, canceled checks, trust records and other documents executed by him or her or obtained by him or her regarding any transaction for which a real estate broker license is required, provided the following requirements are satisfied:

(1) The electronic image storage shall be non-erasable "write once, read many" ("WORM") that does not allow changes to the stored document or record.

(2) The stored document or record is made or preserved as part of and in the regular course of business.










(3) The original record from which the stored document or record was copied was made or prepared by the broker or the broker's employees at or near the time of the act, condition or event reflected in the record.

(4) The custodian of the record is able to identify the stored document or record, the mode of its preparation, and the mode of storing it on the electronic image storage.

(5) The electronic image storage media contains a reliable indexing system that provides ready access to a desired document or record, appropriate quality control of the storage process to ensure the quality of imaged documents or records, and date ordered arrangement of stored documents or records to assure a consistent and logical flow of paperwork to preclude unnecessary search time.

(6) Records copied and stored under this section shall be retained for three years pursuant to Section 10148 of the Code.

(b) A broker will maintain at the broker’s office a means of viewing copies of documents or records stored pursuant to this section. A broker shall provide, at the broker’s expense, a paper copy of any document or record requested by the Department.

2729.5. Record Retention – Uniform Electronic Transactions Act. (a) A real estate broker who obtains documents about any transaction for which a real estate broker license is required when such documents contain an electronic signature pursuant to the Uniform Electronic Transactions Act (Section 1633.1 et seq. of the Civil Code) or the Electronic Signatures in Global and National Commerce Act shall retain a copy of such documents, including the electronic signatures. The broker shall retain a copy of such documents by: 1) Causing a paper copy of the document to be made or 2) By using electronic image storage media pursuant to Section 2729. The broker may retain copies of such documents at a location other than the broker’s place of business.

(b) A broker shall maintain at the broker’s office a means of viewing copies of documents or records stored pursuant to this section. After notice, such documents or records shall be made available for examination, inspection, and copying by the Commissioner or his or her designated representative.










2753. Retention of Salesperson’s License Certificate.

The license certificate of a real estate salesperson licensee shall be retained at the main business office of the real estate broker to whom the salesperson is licensed. Upon the termination of employment of the salesperson, the broker shall return the license certificate to the salesperson within three business days following the termination. I have clearly read and completely understand and agree with the above and am not under any duress or coercion whatsoever regarding my unconditional agreement to sign this AGREEMENT. THIS CORPORATE POLICY / EMPLOYMENT CONTRACT IS AN OFFICIAL BCI INTERNAL DOCUMENT FOR PROPRIETARY PURPOSES ONLY AND NOT FOR PUBLIC DISTRIBUTION. COMPENSATION The Loan Officer, Real Estate Agent or Broker Associate shall receive a commission (U.S. Dollars) from the primary office in the amount of percentage on a per transaction basis. Said percentage shall be set forth on an individual basis (unless otherwise noted in a separate addendum) per the disbursement of a BCI commission. Said Loan Officer, Real Estate Agent or Broker Associate reserves the right to “hire” a loan administrator/coordinator or transaction coordinator as an independent contractor. Vendors shall have a “deal memo” with specific terms and conditions, whereas they are not paid on a commission basis per transaction. The primary office does not restrict the commissions for a Loan Officer, Real Estate Agent or broker associate should said person cease to work with BCI. There are no “penalties” to the Loan Officer, Real Estate Agent or Broker Associate for leaving the BCI organization. Upon termination or resignation, the Loan Officer, Real Estate Agent or Broker Associate shall receive their full commissions due on all transactions that close (defined as “funding and recording”) after the date of departure within 7 working days on a per transaction basis. If a Loan Officer, Real Estate Agent or Broker Associate resigns while they have a transaction(s) under the jurisdiction of BCI, the Loan Officer, Real Estate Agent or Broker Associate can request that all transactions be transferred to another brokerage firm. Said request shall be in writing to the Broker of Record at BCI. Upon “satisfactory” full legal and administrative review by BCI, all transaction files shall be released in good faith to the brokerage of choice for the Loan Officer, Real Estate Agent or Broker Associate.










In conjunction with this release, the Loan Officer, Real Estate Agent or Broker Associate completely “Holds Harmless” BCI unconditionally and in perpetuity related to the released transaction(s). If any of the released transactions produce litigation, arbitration, mediation, penalties, fines, fees, etc., the Loan Officer, Real Estate Agent or Broker Associate is completely responsible for all costs without condition and fully acknowledges that BCI has absolutely no obligation either financially or legally after the point of departure, i.e. transaction release date. If a Broker Associate or Loan Officer owns a corporation or LLC, the California Department of Real Estate allows said Broker Associate or Loan Officer to have their corporation or LLC paid commissions due to that Broker Associate or Loan Officer if said arrangement is included as an addendum in writing to the employment agreement with the brokerage of record. BCI shall not be responsible in any capacity whatsoever for taxes owed by the Broker Associate’s or Loan Officer’s corporation or LLC. BCI shall not be responsible for any obligations incurred, financial or legal, by the Broker Associate’s or Loan Officer’s LLC and as such shall be “held harmless” in perpetuity by the Broker Associate’s or Loan Officer’s LLC. It is also noted in no uncertain terms that when a BCI Broker Associate or Salespersons instructs BCI to pay their corporation or LLC, it should be and is acceptable for “tax preparation purposes only”. Assignation of “payee” status by Loan Officer/Salesperson or Broker Associate (by signing below, the Loan Officer/Salesperson or Broker Associate clearly acknowledges that he or she is instructing BCI to pay their corporation or LLC and that BCI is not responsible for tax related issues regarding the Internal Revenue Service, Franchise Tax Board or Municipal agencies): Name of Corporation or LLC: _______________________________________________________ PRINT NAME CLEARLY

_______________________________________________________ SIGNATURE OF LOAN OFFICER/ REAL ESTATE AGENT (BROKER ASSOCIATE / SALESPERSON)

_____________________________________________________________ TAX ID NUMBER (TIN) OR EMPLOYMENT ID NUMBER (EIN)










Commission Percentage to Loan Officer / Real Estate Agent: ______ AGREED TO AND ACCEPTED BY THE UNDERSIGNED: ________________________________ ______________________________ BCI Employee** Printed Name BCI Employee CA BRE License # ________________________________ ______________________________ BCI Employee** Emergency Contact BCI Employee NMLS/ MLO License # ________________________________ ______________________________ BCI Employee Signature Date ________________________________ ______________________________ BCI Employee Home Address BCI Employee SSN # or TIN # ________________________________ ______________________________ BCI Employee E-mail Address BCI Employee Corp, LLC or DBA (if applicable) ________________________________ ______________________________ BCI Net Branch Landline Tel # BCI Net Branch/Office Address ________________________________ ______________________________ BCI Net Branch Fax # BCI Net Branch Manager (if different from self)

** includes but is not limited to “Individual”, “Loan Officer”, “Real Estate Agent”, “Broker Associate”, “Independent

Contractor”, “Third Party Vendor” (“legally” Responsible Person)

AUTHORIZED BY: ________________________________ _______________________________ David Parry Date CEO/ Broker of Record




Broker Associate / Salesperson Employment Agreement · 01-01-2018 · Any Broker Associate or...

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Transcript of Broker Associate / Salesperson Employment Agreement · 01-01-2018 · Any Broker Associate or...