Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 1 of 20
EXHIBIT W
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 2 of 20
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EMPLOYMNT AGREEME
Ths Agreement (the "A8reemeiit'~) establishig
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an employment relationship is between
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Heaand Mortgage Companyaid\or Hearland Home Finance, Inc. (hereinafer collectively as ':Hëarlaid" or "~mployer") an~ . ~.'¡Yf;~t~ /e~~'f . (the referred to
"Employee"), is dated as ofthis JL day of ~\)rt ,20ß.
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WHREAS, Hearland is a licensed residential mortgage origination company in varous
states asfllly disclosed on Rider A attched hereto and mata a BradigLane, Suite 300, Downers Grove, II 60515
corporate offce at 1401
(the "Home Offce"); and
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WGREAS, it is the intention of related to hereto and atthed
the pares th the Employee is to perorÍall serces
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this Agreement working out of the Hearland offce designated on RiderB atthed on Rider B lIay only originate residential mortgàge loans in those states listed
hereto; and
WHEREAS,
Employee has experience and knowledge in the origiàton of residential
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mortgages or desires to gain experience in the origiation oftèsidentialmortgages and oiice employed wil be respònsible for assisting Hearland in origiatig residentiåÏ mortgage loan;
and
WHREAS, Hearland seeks to retain the Employee for the purose of
assistig
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Hearland in the pedormance of the origination of residential mortgage loans (hereiner
referredto as "Loans"); and
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purose of assisting Hearland in the origination of
WHREAS, Employee is willng to make its servces available to Hearland for the residential mortgage loan;
NOW, THEREFORE, in consideration of suffciency of
the mutu covenants, herein contained the
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which is acknowledged, it is agreed as follows:
1. EMPLOYMENT AND ACCEPTANCE OF employs the Employee and the Employee
EMPLOYM: Hearland hereby
hereby accepts employment upon
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the terms and
conditions hereinafter set fort. .
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2. AT WILL EMPLOYMENT: Subject to applicable law in the state or states in which
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Agrement wil be pedorred, Employee understaids and agrees that Employee=s
employment by Employer shall be at all times Aat Wil1~ employment. Emplpyerreserves the right to tetminate Employee=s employment with Employer at any tie for any reason
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whatsoever, with or without cause. Likewise, Employee may resign Employee=s employment .with Employer at any time for any reason.
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WARIES OF EMPLOYEE: (a). (i) Employee represents that he will pedonn his duties pursuat to ths Agreement as .gOVei by E1.
3. REPRESENTATIONS AND state and federal
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law and wil assist onlv Hearland in the perormance of mortgage loan . . d f
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J. L~~ýt- EX.j)t, ~
DATE I - ~O- ¿¿dO ~
CECEUA BROOKMAN, 50154
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DEF 11685
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 3 of 20
origitigi;activities. (ii) Employee represents tht Employee shal have no authority to bind
Einploýtito .the payment of any money or the doing ofiuy act or thg, or incur any debt,
obligati~liliabilhyor expensefor which Employer isot may obtainiiigthe Mitten consent of
become liabÌe without fist
Employer. In the abs~geofEmployer=s prior Mitten consent,
any debt,öbligiition; liabilty or expense inc\Íed by Employee shalbe the sole reonsibilty of
Einploy~, and Employer shall have no liabilty for or obligation to Employee regardig such debt, obligàtion, liabiIity or expense.
(l). The Employee acknowledges that he has been inormed that the Employer strctly forbidstÌe. solicitåtion of any customers whost loan applicatons were pending át the tie of the any previous einPloýmeii; either as any employee or termallpl'of the Employee from
indepena~t contrctor, tor the purose of switchig these loan fròm the previous employer to
the
appliciitiøns Were pending at the time oftêi1ation of
Emplöyer. 'IheEmployee represents that neshaHnot solicit any customer whose loan employment either as any previous
anY
employ~~or independent còntrtot, for the purbseøf swtchig these loan from the previous
en1J~y~'.o the
Employer. The Employeefìher tepreseiitsththe hasnoHakehany wrtten
recorûS i¡dcomputer di sks which
are the prop.ert of anyprevibus ëiplbyeI l!d shal not use solicit any loan applicaitiaprshall he use any ary suc.~~Writtenrecords or computerdiskS to by to his employment purose related materiaI'ubject to applicable copyrght protection fot any
the Employer.
(0). The Employee represents that as of the date of th Agreement the Employee is not
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bound by (i) any contrctual obligation to a previous Employer th would restrct the Employee any from eítêring ittö this Agreement or in "any way competig with a previous employer; (ii) or
other contractual agreement relating to any full or par tie employment.
(d). The Employee represents and warents that his employment with Hearland is and will be exclusive, and the Employee shall not have (i) other full or par tie employment; or (ii)
perorm any residential mortgage origination activities for any other company licened
puruat
entity tht is
to appliç¡ible state law or any other entity exempt frmlicenute and/or any other
reaiiedto become licensed under applicable state'law but has not become so licered;
(ê). The Employee agrees to safeguard and kee secet frm
his computer passwords
other Hearland employees and user name, designated Hearland Inorntibn Technology personnel
excepted.
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(t). In regard to any applicable state licensing requiements to which the Employee is subject, (i) the Employee will advise Hearland (in Mitig withn 10 days) when he is licensed or when his license status changes or if a license is denied or if a license is revoked (ii) the Employee will advise the licensing authority (in Miting with 10 days with a copy to Hearand)
when he changes Employment to Hearland or from Hearland to another employer. . /J I.
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DEF 11686
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 4 of 20
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. (~).. The Employee fuer representS to Ht:arland that he understsds that it is Employe,ç=sre~poniiibilty to obtain good stâdiIig ard applicable
the
licenes and to kee suchlicf:pses curent and in
to fuifill any applicable state contiuigeducatioti requienients. The
Emp!l:ìYCiêåclåowledges that
he slil not be depending on Healand in regar to any
jursdction in which ths
for a: perod of
information or requirement asto theEmplòyee=s licenes.
4. TERM OF AGREEMENT: Subject to applicable law in the
contiactwil beperforred, this AgreementshallreiiaI in effect montlfrom tle date of
tWelve (12)
ths Agreement, uiessteited in accor4ace withthè;teton
provisiotis' hereirtfler set fort. If not tei'atedwith such twelve (12) month perød, ths AgrementshiiIl renew for ¡idditional periqds of 30 days uiess termted in acrdace with the
termtibnptovisions hereinafter set fort.
5. TERMATION: (a) This Agreement may be terated:
(i).'by mutual wrtten agreement ofthe paries;
(ii) by either par without cause
upon wrtten notice;
(ii) by the Employer immediately with cause, upon a material breach of any term of ths Agreement;
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(iv) by the Employer immediately upon the disquaification of
the Employee to origiate
residential mortgages iíi any state in whiëhEmployee is allowed to órigitell' listed on Rider B
attched hereto;
the Employee has commtted an act in violation of or has knowingly submitted false information on a loan application; or knowigly or its value; or has subIntt~ an appraisal with knowledge that it falsely describes the proper mortgage loan to the sUbIntteâfalseor misleading underwtigdoc1iëltation in regard to a breached the Einplqyet or aiiI1vestor to whorrthe EInployer origiatesmottg,ngeloan; or has
(v) by the Employer immediately if the law; terôe;~is Agreement; or has violated the
Einployer=s poücies aidprocedur; or ba .
origiiiåtê' a loai il'a state notallowed to the Emplõyee (ás listed on',Rider B atthed herto); all as deterined by the Employer, in its sole discretion; ,
(vi) immediately
upon the Emplòyee;;s deàt;
(vii) by the Employer in the event that the Employee has a peranent disabilty that
makes it impossible for the Employee to perorm the essentialfictions of
the job even with
reasonable accomodation.
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DEF 11687
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Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 5 of 20
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Upon such teriination Hearland shall contuiue to pro.cess alniortgage loan applications taen
by the Eìiployeefor Hearland thou&h th'e d~te of such termaton,.
(b) Upon a termination without cause/an loanthat fu,ds with 15 days such tetinatíon shall ear the 13tnPloyee.a fiU çomnssio)) auetflirtherein Afer
of the dae of
such 15
day period andcontinuin~thoughthe 30!l d4y ftomsuchtera.iìoll the conissiCln normly
piìdto thø, Employee will be redtlced bYO)le p¡Ûf.AnersJ1P~perod nofier comPeiÌûon
wiUbe,paid to the Employee. Diqng suchPfa4iier'tcitiönl:e Empl()yeesha notbe
paid fOtliloimapplication ti:en çm belif of¡ thaßrnPlo~er ptÌar toteriniition in lQeevent that
fue Employee
solicits the same customer for ~ n~w loan fara newempl()yer o.fthe ßipI6yee.
the eyent ofatermilo~ witlcaJJse due to mud in the
date of
(c)'Subject to applicable law, in
origiàtiqn ofa tesiden,Hal mortR~g~, or mis.il¡ppiopri~onof client moiies, the Employee shall be
paid oi1yfor loanswhiëh,have closedpri!,t t~oron the
such terntiön with cause.
6. ,EMPLOYEE=S i;lUTlES:, Th,e E~?iPyee agreesto,ac#veiy,ëtg¡tge on a fuUtie
basis in'thëorigivatio.n of h1o~glJge;ioiUstgihê,generatcPublicaidtoaSsíst üf theproessiiig of
each lÒlU'ßip!iejj.tion he 9i1ginaIës, TheEm~loie13fttr'agiees toni~t¡ 9tio/treçrds of all/ipJications incompliance withapplicabl~stateand'fedêrllaw, toín,aita lofiiitles in
co.mpliançe with the policies and procedures ~et fort by tl:e Employer, to foIlow all policies and
pro.cedu¡es set forth oftheErrPloyer,aid at
by the Emplo)'er, notto im*e any representi0ns or commtmeÌts onbëhal
aU times, to upho.idt~e goodnare aìd:reputa0ii oftle Employer. In
the Employer:
addition the Employee shall pursuant to theii0lieiesand procedures of
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a Atange and/or attend closing of said Loans; and
b. Collect all monies due andj owiIlg to Healand as a result of each Loan transaction.
c. Take all Loan applicationsjin the name
Hearland. '
of
Hearland andoIl beha
of
investor comply with alFapplicaalestte lièensIDg requierents and contiuig requiements and to. education requirements of those states in whlch ths Agreement wfii be perormed.
d. Remain current in issü~s rllating to. mortg¡ge origi~ns and
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e. Comply with all policies and procedures o.fthe Employer which relate to the
verification of
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hours worked and pre-apPi'òted overe hours.
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DEF 11688
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Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 6 of 20
7. DEPOSIT OF FUS: All fuds
received by the EmploYee pûruat to ths
AgreeI1~n4.!luchas application deposits for apptasalfees or credt report; shal be payable t():f~arlan'd and shall be immediately given to Hearand to
mae
be dep6sited t9 lieåand's
ban aCcount with docunentationas to the source, use and disposition ofslÛd fuds for
eah Borrower.
8. COMPENSATION TO PARTIES: Hearland agrees to make payments Employ~in accordance with Schedule A attached hereto and incorporated by
to the
referce into ths
by Healand
Ageement.
9; ADVERTISlNG: Any advertsing by Employee sli be pre-approved prior toits use. Advertsing
shall be deemed to inclúde, bpt shal not ~e 1ited to,
advertis~niëntsin ney.spapers, ma~azines, ()therperodicals, radospots,roailigpiecêS, bUSiness
cards,ét~~ H~artland shall, either approve or rejeCt saiq'advertsÌlg in aJi)laly'niiier All suh
advertiG, shíillbe on
behalf of Hearland an4 shall comply Wlth appliclile law aìii statt .
licens .., .'.,.~ireI1ents. To thêextentanypre-àl'Pr?Ve~advet1~ijgpítlé ì~4i~ted fudividualy
tothenmplqyee,suêhEmployee shairbe respo¥ibrecfor il coi;ts;i¡dthàges aasociatênWith sucña4'VêÏt~in.giid shiill àt the time of a requ(i~t for apP!oväld,enionstite to Hearllld that
such adversing has been paid in full. .; . .
i(l. 9¥LIVR Y OF I?OCUMNTATI9N: Ernpl~yeea~ees that up~n ent~g in.to a
Agreement with a Rorrower. (i.e. a Customer Agreement) the Employee Shal imediately inorm Hearlan~jn wrting and supply Hearland with ~ copy. Employee fuer agrees thatall
pertêfit"dätá fo~r-each Loan fileshaU bedelive~ed to: the offce ofHeara:d out of
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which the
Employee works in a timely maner. Hearland( shall mainta said fies in such offce ard such fies shall be made available for review by Empfoyee durg normal buSiness hour.
12. CONFIDENTIAITY, NON-SOLICITATION AN RESTRCT
COVENANTS.
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DEF 11689
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Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 7 of 20
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1~.1 CONFIDENTIALITY. (AlAs used heteinthe tenni'Conßi:ential Iinormtion~
shal Iltt¡any .and all non-public information. includig;b~ttìdtlitetHo å.dâta,
coinpiIa#()ns; programs, devices, strategies conditiønofHearthmd's, results of
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or meth~tinc'cmsëlrrelàted to (ijth~ficial
to offcer mid
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operations. mid ~ounts ofca!np~()n paid
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eiploy~;(ii) the tennard conditions (including prices) ofsales'iud'ofÏerofsaesof
mortgtsejiro¡fucts and serVcesofHearland, and the curent sttuorl!ea1and'stelati()nshIp
withiûycustomer; mortgage baner or investor; (ii) theter, conditions a.d cureiit sta of
Hearl~4:~ ~greëm~nts ~d relations?ip with ~ custoin~. IlortKase haner or invesor
of
Heat....l.an.........d.......;... (IV..J.th.e. Id. en.tl.tie.s an....d. ,b..u.$m. e.ss .Pf.e. fi.~.'......l.e..nc. ,.e.....s...o... f. ..li.... ea..... .....I..an.,.........d.'.S...il... ti..... ......an........d .'p.ro...'...... iiec.. ..tive
moitgag~)oan custoiners,mottgagi: banerii,' inyestorsor,ilY enpløyeeorágtmt tlereofwith
e.;. ,r.....~.......f..ti.......~. J.ea.~....;.ma.'.b~..~...e;.'..d.ãr.t.ec.d...r.d,'.'.tl.'..'.fl.;.'~.'..~...~).'.'.~.'.~~.,;.d.;S.' .' ide.... on :tr...h. ~:..g...I..~.'.c.'...'.......~.p...r..'..'.an..Jän.p...do.:..~:i.s. ~~. ~.c:.v.~;;Z.":~.i.~S .
commut'Ucatt0I'sbetween '. Hearli!dits offc~, - diettoi- ,shibolder()reniplpyÇë, and any
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attomèyretan¥ by Hearlmid for miy purose~' r àIY:iet9ti.rèta~òrcm~loyëd1)~ suçh
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I att. h ..i:.....'..e.. ,.'..y...'................fi.........'..o.....r. u.~.p..~.rp... o.se Of...as.. S'I.'sti.ng. ..su....c. h art.... om.. ...... y...... in..........,.hi..................s....p."..íI...,.........h.....er......... .r. çp..........,.... r....es... .....e.........n.. ta.. ....ti.........o......n....... o.Î.. ¡ or collected by,HenrllUd,.which,is ptotectedby tle(Sanyinqqnation given .to Hearland Leach"aliey Acfiíicluding but
not liiited to' 'ptlvatefucràl iÌoí;âiibnofHeaflaid=s
m()rtgag~.çustomers given to Healand; (vji) '. y ithribniÄ#iardt~"'4öse ~òíûpiues or
entities wb.chsupply inteniet leads to Hearlànor any cói1tact Withsiichcompaneabytbe
Employ~;.and(ix) any other maner or thng. hethei. òrnot recrdec on àny meqlu,(a)by
wbich¥earland derivesactlal or poteiitial.ec . noinc value frm such matterort1g,being not
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generaiiy known to other persons or entities wh . might obtaeconoInc value from its .
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competitors who do not
disclosure or use, or (b) which gives Hearland an opportty to obta an advantage over its know or use the same. I
(B) Employee acknowledges and agrees I
that Hearland is engaged in a highy competitive ?usiness and has,expended, or :viI expend. sigifiçant sums 0r.mo~ey, and has invested. or wil the secrecy of mvesta substantial amount oftime to develop ~d use, and maita the
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. Confd~tial Information. Hearland has thus 0 taed. or Will obta a valuale economic asset
Whi.....Ch.........'?...as...................e.nabie..d,..o,....r wi. :n. en~bl.~,it to d...ev.eióp.. an.. e.,.x. t.e.ns.......,..l..;V.. e...r~û.ta.d.on.. ..an.. d......tó.....~...e...s.tåli.:.S.'.h. !Ong-.
tetmlillLiØ5srelationships with its customers,,'suçhConfdennalInoi:üön were aïsclósed toanotl¡,.person or entity or used for the bene tofii¥pne oiler th Heaan4, Heäand wouldsl\jfer irreparàble har, loss anddll'a~ Accòrdigly,EmployeeacknøwleigeS~d ' ag:e~ tlatunless the Confidential InorÍation fbecomespublicly kioWnthugb legitiate
orlginot involving an act or omission by Employee:
(i) the Confdential Information is, and at all times hereafer shal reai the sole
propert of Hearland;
(ii) Employee shall use his best effort and utmost diligence to gud and protect the Confdential Infonnation from disclosure to any competitor or customer of Hearland or any
other person, finn, corporation, or other entity; íl.i . ,;
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DEF 11690
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 8 of 20
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(ii)unless Hearlan~ gives Employee prior express wrtten permssion, durg his emplóyient andthetea1;er,Employeêshall Dot use for his owrb~eñt or divulge to any the Compètitw or customer or any other person. filn, corporation. or other entity áíy of
CoIúâêrtt1a:IIhformation which EmployeemáY obta, lear about, develop or be entr with
as a result of Employee's
employment by Hearland; an~
(C)
Employee alsoaclmowledges atd agrees tht al documenta and tagible
CoIúdenti~1 Infofrationincluding, withoJlt limitation, such Confdeptial Informtion as
Employee has ~oinitted to memory which is stiplied or nwe availiile by Hearland to the
Enipìoý:~ sol~ly to ässisíhimiu'pe,i¡oring his SerCClS un¡fer tbs Agreeentis inclùded in the
defitiò,ll,of Confidential' Information. Eiiployee fuer agtee that àfer his employment with Heariåñd terminates fór any reason:
(i) Emplòyee shall not remove from Hèarlani; propert, and shall liedately
retu to Hearland, all documentar or tangible' Con1dential tnformátion in his possession,
custodyór control and not make
or keepliyçopies;Dotes, abstts, suares; tapes or other
record of'any tYe of ConñdentiaiTnoriation;"lud
(ii) Employee shall immëciatelyretu to Hearland any
and all other Heartland
proper in his possession, custody or control includig, without litation, any and all keys, credit cards, and marketig litertue. " securty cards, passes,
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that he wil not, prior to the expirtion of two (2) year following the termination ofEmployee'semploymenHor anyteason; without the or indiectly, or by action in coiicen with others, induce consent of Hearland in wrtig, directly who is engaged by Hearland as an or inuence, or seek to induce or infuence, any persn
, i 2.2 NON-SOLICITATION. (A) Employee agrees
employee. agent, independent contractor or otherwise, to termate his/er/itsemployment or engagement, nor shall Employee directly or indirectly employ or engage or solicit for
emplOYment or engagement or advise or recommend to any other person or entity that such
person ôf bntity employ' or engage or' solicit (or employment or engagement
any peron or entity
employ'èdor engaged by Hearlard,
123 RESTRICTIVE COVENAN. Diig:the period of Hearland and for a period whatoever, Employee shall not,
Employee's employment by of one (1) year afr Súbh employment tenatês for any reasn either directly or indiectly, on his own acunt, or as an
of liy other person,
employee" consultant, parer, joint ventuer, owner, diector or stockholder
fi,parership, corporation or other entity or in any other capacity, in. any way:
the conduct of a business which is
(a) Conduct, engage in or aid or assist anyone in
competitive with any porton of the Hearland=s businbss with a twenty five (25) mile raus of
any Hearland offce where Employee worked;
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DEF 11691
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 9 of 20
(I) Solicit, divert, take away or accept order~ from or attempt to solicit, diver æke away
or accept:orders from any person, firm,parerhip, ~orporatìori or other entity for whom
HeillÚdhas peifomied any serces or with whom) Hearand has a vendor relationship with
the imediately preceding
twelve (12) month per04.
(c) Without limiting the pr~hibition set fortlherein at 12.3(b), the Employee is prohibited
from coiitacting or soliciting or of having any busin4ss relatonsbiponhis own behalf or on
behalf ofÌ!y new employer with any company whì$ provided inteet lead
to Healand durg
the pero40f the Employee=s employment.. The Eniployee recgnes Ult :ßèa¡id has
inves'liige amounts of time, effort and moneyinlobtJtli~,g suhintemet ieå(rqCimp~~ii as
àre used'by Hearland and the Employee recognizes ite value of
suh vendorito Healand.
agrees that the business
12.4 REMEDæS. Employee acknowlydSes and highycoinpetitive and that. violation of 12.2anclJ2,3 of
of Hearland is
any of. thacoveiiänts prQ'videdforin parågÏphs 12.1, .
this Agreement would calise imedate~¡iijlèand irep.arlehar,
lossåntfganage to Hearland not adequately compen$~ble byä nio~êta R\y¡id. Accordigly Empldyp~'agrees without limitiiig any ofth~ other iemeiesavàii~ledtoffealanMlia any
violatio¡iiofsaid covenants or any of
them, may beenjpmer(jIteSteaby anycoúi.of .
competëntjunsdictioi1, and that any temporarrestihÚg orleror emergcmcy preÜp or
fiil injunctions may be issued by any Cour of competent jursdiction without notice and
without liond. In the event any proceedings are commenced by Iiearl!Id agait Employ for any said covenants, Employee.shall be liable to Hearland for, of any of actual or threatened violation
and shallpay to Hearland, all costs and expenses oflÍykid,inCludig reasonaleattomeys=
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fees; which Hearland may incur in connection withsuch'proceedings.. .
It is the desire of the pares th thè provisions of
12.5 ENFORCEMENT.
Pargrhs
Paragrhs 12.1, 12.2
12.1, 12.2 and 12.3 be enforced to the fullest extent permssible under the laws and public policies~ll each jurisdiction iÌl which enforcement may be sought. Accordigly without litig
the general applicabilty of Sectio1l22(h) hereof if my parcular pOrton of
or 12.3 shall be adjúdicated as invalid orunemorc,ealeot ifthel\pllcaton thereòftoanypaI
or ciIwistance shall be adjudiçated to be
prolibjtetbyqr jnvalP uncter suchapplic¡iL,e law,
such påtagtaphs shallbe deemed ainendedtòdê1ete th'erefromsuchportori soaçjudicat'slld
to the op~tion ofslld Pargrhs 12.1, 12.2 or 12.3 in the deIetiôrHó apply onlý with respect parculìijurisdiction so adjudicating on the pares and under the circumstces as to which'
adjudicated and such Paragraphs shall only be amended to reuied and the paries
narow them to the mium extent.
wil be deemed to have substituted for such porton so deleted words
applicable law to Pargrphs 12.1, 12.2 and
which give the maximum scope permitted under
123.
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DEF 11692
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 10 of 20
t~:; R¥TU OF RECORDS PASSW!?llS: Upohfermation of
AN
PROPERTY AN USB OF INERNT
are Healand'spropert or relate to Hearland's
ths Agreëretit,ExployeeshalHmmediRtelydeliver al
and that.
recor~sj'n9tes; data, memorándà. and.any equipment or apy natue tht ate in Employe's '
possessiøi', or under Employee's control
husines~; Furer, Employee, upon termIion, shal not access any computer netWork or
Hearlanaintemet site Üsingpreviously authorized passwords.
l~.BOOKS AN RECOJlS: All
records in regard to the Loan Applications sha at al
ties re.lÛn the exclusive propert'ofHeatland.
15. BENEFIS; Employee shallbe eligible for l\ll benefits allowed generally to
employees of of Directors of
Hearland based upon the requirements for such benefits as diected by the Board
Hearliid or the vendor supplyig such benefits.
16. LAPTOP COMPUTER; SOFTWAR:
e
(a) In the event thatEmployer provides a laptop computér to Employee,Employee
understads and agrees that such computer, together with any softare owned by or licensed to
Employer and provided to Employee, shall at all ties be and remai the exclusive propert of
Employer and shall be used only in conrection with the conduct of accordançe with any
Employer=s business and in and all rules, policies, procedures andnrders Employer may frm tie to
tie åioptor give.
Ck) Upon tennination ofEmployee=s employmentwith Employer, any laptop computer
and/or sQttare and . copiest1ereof, shall related documentiition owned by or
licenSed to Em.P1Qye¡, includig any
termatjon of Employee=s employment with Employer, Employer may withold any
be immediately retued to Employer, Employee fUer agrees th' upon and al
compenation due or to become due Employee from Employer until any laptop computer,
softare.lud/or related documentation owned by or licensed to Employer, includig any copies
thereof, are returned to Employer.
(c). In the event that Employee brigs laptop computers or softar on to the premises of
th, EmploY", th, EmploY" sbal hay, no reonsibilty to .af,gu suoh ite and ~ L such items are damaged or stolen. responsible if
Int '
9
e
DEF 11693
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 11 of 20
e
17. EMPLOYER WEBSITE AN INERNET A:çTl~.:.. Piigthe ter.
of
Employ~t=s employment with Em~loyer, Employer niay ine avaji~l~toltpìp19yee spaçeon
Emplôye,r=s corporate website and/or allow Ei'ployee'U$eòtEg:ploy~=selectriic mml,(Aeniaillê)'system. Employeê=S use of anyspaceqn,Eniployei=s cOq5oråtewebsite, 844 tIecbntemt
therep~sniii at all times be and remain subjecttÓEmployer=s prior approvíl.EnΡiïpyer reseres tberightto delete, remove, or modify any informanon,ot matealtat':IÜnployer, ii.its sole Ebployc;e diScrêtiQns' deems inappropriate, ~proper, inàcllte; ot misiel\g,in anY way;
agrees. ....th.........,¡l.:,t E. ~p.IOyee s. ha.ii,abid.e,b.Yan,~'.fu... .1lY..~~IlPJýwithanr and,'.a1.1M. ;eS.'. P.OliC,ieS,pro.cedures
andorners whlchEmployer may fromtime to n¡e adoptorgive regatdIgEinplòyer=s corporàe
website lid/or use of Employer';s
iS. POWER OFATTO~Y. Emploeener.eby irvocably
.. .,~.. , ' . or any Employer.
i appoints
e-mail systeq. . .
ofi..lS iipthorizedagents, asEmplpyee=s attônïe.;.in~fàct tòaçl forI3mp(QYeeånd in Eoi.'loyer=s
naie (~dïiY way Employee êguldäct iaP:i'o\vitl:resp~ttotJt'fqÛO~gjpowè,i (a) to
0IlO!reiow "'¥.. ,u""ti~d",~.....lòp" 0f~~~1Q~lbyé ..d
deliverciviatheVnited State!l'M~Íll?rotRer mJ~t~: En1l?~d er#B:of.ç~.'ll~totät:foritielf
any CÚJ~èY, checks, drafts,motíeyordersor oth~rföfusof ,..tf~9lqsê(;l 'IÔ'Wlích
Etpi~y~ris or,
may be entited; (b) töqepositarYØiieioy, .... .~ii~~4;n~, . .. .~y;apdàI
of payment
cheeKS,qrafts; lloni:y orders or other forms maybefJ~ property of Employer;
made p . ..,...1~toE!nploýb'wNèhare.or
and (0) to the.
extent pertted byappliçable lawandloi ths
Agte(lìn~t todedÌlct and withold from Emplayer any
and all s\lS owed to Employer by Employeeuhder tls Agteènienf or any
any compr;nsation due or tcibecome,dlleEmplòyee from other
e
agreement, whether
oral or wrtten.
19. INSURCE. Employee agretlS that durgth'e term ofEinloyee=s employment
with Employer, Employee wil mainta in effect on Employee in the conduct of Employer=s biliness a inumof $300,000.00
any and all motor vehicles used by in combined
single-Iirt bodily injur/propert d¡uage liabilty inurce. Emploýeefueragrees to defend,
ind~tyand hold Employer harless from. and
agait anyand¡ilclaims lI!s~tEmPl()yer for
iijllcs':or 4arages cal1ed,'or allegf!~ to haVe been ca~êd, :j)ý Eniiilo.y~wbieop~g,:any mptot~ølûcle ilithe course ardscopè orEinploYee='scûiPl$!yi.ent,;¥tb:aplQyer. FUér, 24 hoUl ofiiY irotot~elïsi~JI~i~e¡t whjch ocUr in . EmPlqy~e shall notifY Employer withi
t1ecoUi~and scope ofEinployee=s employment with Employerwbièh'CWd
result maclaì
agait the Employee.
to. RESOLUTION OF DISPUTS. Any dispute, clai or controvers by EmplQye,eandlor Employer arsing out of
or betee
,due
or rehitigtotbs,:A:lleee.nt,iicludig.putn()t liited
to, anyiUspute, claim or controversy regarding any compëi:bIi ale;gedto be
Employee
submitted to arbitrtionãdstered ay the Amercan Aritrtion ths Agreement, shall be under Associaton (AA~) in Chicago, nlìnois underitsCoinerial .Abitrtion Rules.
Notwthtanding anyting contained herein to t1e contrar, in the event of any alleged breach by
Tnt4l
10
e
DEF 11694
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 12 of 20
Emplay~oftheprovisions oflaragraph 12.1 (AÇd.ridentialand'Br()prietyTnoimtion~) or p3rgt~i22 (AN(m"Solicitatiop.c~)or Pa.Wpli 12,3(Kestrçtive Covelt) or 12.6 (AAVdiå/Ûceof Coriicts~)òfths kgreeient,ÈmployetshaIlhávetlé OptiÒ~iii its sole
(W¡cretiQ~of subiiittng anY claiinaUegig breiiIlofthöSeproVisipns to bjÌ8i~aritrtion or,
altèrmtively, filing suit
. .. ¡. .
and
against Employee in any cÔuror competenfjursdictioiÏ Liewjse the
reredyof Arbitration shall not apply to remedies avÍìlable to the
EmployerpurUat to Section
12 herein;
21. IN'EMNICATlON: The Eniployee hereby indemnes Emplo~i¡r¡ its ¡lsigrisai~su~cesscrs. agaitaiyann aU
saves 1iess the
loss, . cost~d~m~g~, e~pose (inëlùdig,
other eXpenes), ånd
withoi.tj¡Wtiilg the fQre~~~g, reas0n'able attomey=sfëes, cour çoSl ard liabilty~haÍlgever Íiêúi'~dby it in of any forier employer
any maier arsing:fÌn my asserton agai the Employer
offfeÆmployee.
primarly responsible for any,lia¡'iljtytb may
AIt!wugh the Employer is
are due to any
acts orpnii'ssions oftheEmployee9~çurng witiiintIe sCopeqflîs ,ai~is~cii tofueEmployer in
the peifòrtajce of itsreg~lat~;;itctiVìties, tiie EinPloyeea~,es tb~tteI?inploYte wil .
indeniWaidhold hatlês~'the Eqlplciyer fórthe'èoni\muèû4~.farc~aêtioii,by the
Employ~e which are in violation of law, amount to fr,l, ornûSTresentatioiior sInlar' actioíi
limitig'the foregoing, such which wÌ)uíd impose legalliabllityqn the EmplQýer. Wiilout indeinpcation shall include anylegalliabiltyimpo.sedgii the. EÌnp,loyerÆor tlê'acons of the
EfupIòYte.in originating or attemptìng to ariginatèà mbrtgâge.in ajuisdiction in which the
Employee is prohibited by this Agreement órby the license státutê of the applicable state.
e
The Emplovee. acknowled2es for infòrmatioDaiÐ~iiosësthat In;theeventthe
EmDloveeoarticibatesJíilÌnv fraudu leD tactiyltv thatJe2ål;llaimiiV.forsüch fraudulent or
iÜei!alactivitv may not be
dischar2able,Dursuant to FèderalBå1ÎiruDtcv Droteêtion laws.
22. MISCELLANOUS PROVIIONS: (a) Amendment. Neither th Agreement nor
an tei:liereofmay be amended, waived ordischiiged 6ral)y, but oi;yby iil:entinwrtig signedbý)tbe par against which enforcement oftbeamendnent;. waiver otdischageissought.
(b) Headings. The headings in ths Agreement
are for convenience or reference only and
shàll notdefhie or limit the provisiòns hereof.
(c) Applicable Law. This Agreement shall be construed in aCcordance with and
govemet,by the laws of
the state inwhich the designated offce as set fort on Rider B attched
hereto is located.
(d) Countei:ars. This Agreement may be executed in severàl courterpar, each of
whi,h .ii "n,titul' .. nrigina. bnl ,n of whiob togothor .ii "nstn bot on, ""40
Tn
11
e
DEF 11695
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 13 of 20
(e) Jurisdiction of
Agreement shall be brought inthe state
Courts. Any judicial proceedgs between the pares under tbs in which the desigrted offce as set fort on Rider:B
atthedlieretö'Ìs located..
Interest. All of the term, coveiantsaidconditions herei conWnedshaI (f) Paries in inure to the benefit of åidbe binding upon the pares' hereto,their heir, successors and assign.
(8) Notices. Notices under this agreement shaIbe in wrtig and be pernaly delivered
or SeIt;~ycertified orre~stered mail, retu rectiptreqiiest,~ tp,thepares at thtf .~drses
spëcifiea'~eioW or at such address
the eveiit.thattbe Employee changes provisioris of
as 4esi~edin Wrtig.,t¡:allpitwat to thspargih. In his address he shall notify the Employer pùif to the
ths paragraph.
(h~ SeverabHit,. Wheïever possible, each provision of tls Agreement shall be
interprØ~ in süch mater as to be effective and valia under3PPUcaiiìëlaw. IfapyProvision of
this :Å~meIlt. oranyportionof any~rovi~ion orths A&reeent, is'fg\i~ti:'b~unàWf or
invaldl)rotherwjse unënforceáblë,' s,uçhpròvision qrpoitont1#4at;sJi!¥' beÌIe:feêtive omy to
the exferitof snçh prohibition or invalidity,and theo'then:irnvi$iqns Jittèof;i,ël.tn~'rtÍg
portonbf any such invalid or unenforceiible provision, shiÍf reiam in fu forè iià efféct. .
(i) Waiver. No waiver, or alleged provision oftMs Agreement in wrting and signed by a duly
waiver, by Emplqyer Many term, condition or
shall be effectiveforanypUTQse \Vhatseverunlesssuch waiver is
authorized offcer (a ViceI1esiâent or breach of ths Agreement-hållnot operate any
e
waiver
by
Employer of
higher) ofE/lployer. Any or be constred as a
waiver ofaný subsequent bre~h.
û) Entire Agreement. This agreement is intended by thepareshereto as a fial
expression of their agreement and und,erstanding with respect to the subject matter hereof and as
a complete and exclusive statement of the term therf andsupersedesaIy and all prior and
contempøra agreements and understandings.
(k) Section for convêìûønce of Headiiigs The headìngs of the seversectio¡i of par of and ar
ths Agrement are inered
reference ana are nota
not intended to gover lit or aid in
the. coritnction of any term or p¡'ovisiontherëof. ' .
Tnt. .!f
12
e
DEF 11696
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 14 of 20
(ii) The Employer shall have the righU ,'assign ths Agreementand all of its
ob1igadoir hereunder to my person, firn or eorporati 11 to whom it
sells or tranfers a major
pörton öfits assets.
(n) Liquidation Damages. In 12.1(A)(vii)relating to. thepnvacy of the Employer the breach, wh,ch the it sum
the event thç Em lí:y~p Violates the proVi~ions of Section pay to customer fiane al it0rmaton,theEmployee shall
rean of such
often thousànd ($10,000.00) fi injurtothø EirPloyør by
being impossible tò ascertain or estiate thceiti,or ex~tcO$ts, damage. or injur
Employer iiaysustainby reason,oÎ sUêhb,ach, and ~uch SUIll is agree on as corrperä,~ôn for the injur suffered by the Employer'. 4Mt'aSiipenaty.
,(0) Emplovee Authorization. The Employeeà . thpries fueEmployer, at its sole reasClnablediscretion and subject to applicable law, toobtaì a background check on the
Employee from time to time
while this Agreement is .' effect.
-
IN WINESS WHEREOF, the parties have ex uted ths Agreement
as of
the date first
above wrtten.
Employer Hearlan Home Finance,'Inc.
Hearlan Mortgage Company
1401Br dig Lae
Downers Grve, illiois 60515
Employee's Social Securty Number:
B~~
13
k:\lg\38093\employment4. 10\3-25-03\3-3l-03\4- 1 4-03\5-5-03
e.
DEF 11697
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 15 of 20
~~er A
Licenses of
Heal14 as of _June-, 2003
¡I
Ii.
¡¡ I i
¡. ¡
i:
Arona
State Bàing Departent
First &
i! i!
Second Mortgage License #
'wterLic #;eKal~ai03722
.. as Êi.~....~~~:.ur..r.;~r.c L.#..i.c..Ðb...B.....~.......~~.9.i. ~:...;.;;
City Lic #aKBR4J104023
ymipK. Mi ÛP#:B~R,,~1 04698
Stl LOuis, MO Lic#a~R-QI04699
Atlora COLic#BKBR-oiÖ3907
Infeperidence, MO'LIc # BIGR-OlO554 1
i ....... .. ...
# . .
COlbrado
Stâte,òf~olorado Deparel1t of Law
Mprtgage Licene
Dawners'Giove Lic#998431
M1ddleburgUc #098431-001
Arora" co Lic #098431-002
;
-
Connecticut
State of Connecticut
Déparment of
Fujt Mortgage Licene .. Dqwiers.Grove Lie #6881
M~ddleburg Lic # 10217 Mflb()rough, MA Lic # 11171
Bankng
Consumer Credit Division
.1. ...
S~ond Mortgage License
D~wner Grve Lic #7108 M~~dleburg Lie # 10218 Millborough MA Lic# 11 172
Delaware
offcêõtthe State Bank Commissioner
Firt/SecondMortgage LiceIie
Do,\ver Grove, IL Lie #143875
t.
!
Habover, MD Lic # 143877 Mi~dleburg Hts LIc # 143876
Gêrma
Baning and Finance Mortgage Division
Depåierit of
Firt/Second Mortgage Lic # 12179
Indiana
State oflndiana
Securties Division
First Mortgage License # 7319 Second Mortgage LIc # 95-0094LB
e
DEF 11698
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 16 of 20
Iowa
State ofIílwa Iowa Division of Baning
KanS8$
,OfIce of
Firt/Second Mortgage Lic # 640
the State Ban Commissioner Oivisionof Consumer & Mortgage Lending
First & Sec()udMortgage
Downers Lic#'i 998~37~ St. Lèuis 1Íc #1998~374404
¥îad1ei;urg,#19,~8-37ii03 Aitòl':'Lic"#l99a"~'7#05 OVerlåqdl.ic..#ig98-3'7~06
InpiPeiidènc~Lic n 1998-374410
13l'\mNood;.1WLic# 19Q8-374407 Rittburgl¡PA Lic fJ i998-3744-08 AtlaItà; GA LIc # 1998-37449
Kentudliv
Dèparênt of Financial Instituions
First& SeçóndMortgage 1025
Lie #734'&739
Martland
DepaTeiit of
Labor, Licensing and Regulation
First & Second
Mortgage
Downet Lie # 6691' Hanover:Lic.#-7~l42
-Massachusetts Division ofBaoks and Loan Agencies
JrdÍânàpólis #7603
Middièbíig # 1602
Firt & Second, Mortgage
DownerLic#.MCI13S
Midai~RUlgLic,#¥ClR86
'Faioni pijLie'#MC2i8S.
H:ll!:v~r; ~LJt #MC2t61 Matlhòrou~ #MC2148
Milfòrâ.cr #:MC3029
Micbiitan DiVisiodöfFinancÎal Institutions
Firt Mort~geLic # L-061 9
Second
Lie #SR-0261
Minnesota Stâte ofNtinesota
Deparent of Commerce
Firt Mortgage
Downers Lic # MO 20229291
e
DEF 11699
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 17 of 20
Missouri
Division of
Fiiiance.
t'itit IV S~ondMqrtäg St. l.uisLic # 99.544
Independence, MO #01-344.1
New
HaMDshire
stae of
New Hampshire
First Mortgàge Licene
Bang Deparent
Dó\\er GroveLic #907-MBB
MiddIebtig Lic'# 9069~MBIHlCl MalbòroughLic # 9068-MBH-BCH
New,Mexlco
State of
NeW Mexico
Firt & Second Mortgage
Ifegilatlon and Licensing Deparent
Downer Lic# 00994
Ohio Department of Commerce Pin an cia 1 mstitutions Division of
O~lo.. .
First Mortgàge . . .
Sprin~daleLic #M817
0 Faiborn Lie # . Ma909 Wortgton Lic #MB4800
Middleburg Lic. #N153
Pennsvlvania
Commonwealth of Depiient of
SeCondMortgage Sprigdae SM7649 Fiuom SM7650 MiddleburgSM7645
Pennsylvania Banking
Firt
Mortgage Lic
Gtee TteçLic #1517
Gr~Raid:Lic #1517.001
LaingLìc# 1517.002 Down~ Lic#lS17.006
. Mid(lr~btigLic #1517.003
SouthêldLic #1517.004
Southeld
Lie #1517.005
Second MortgRge Lie
Green'lreeLic #1833 #1833.001 Grd Raids Lie
i¡iig Lic #1833.002
Downers Lic # 1833.006 Middleburg Lic #1833.003
Southfield Lic #1833.004
Southeld Lic #1833.005
e.
DEF 11700
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 18 of 20
e.
RbodeJslilnd ' S'tate of'R$ode Island Business Regulation Deparent of
Firt & Second Mortgage
Downer. . Lic # 20QOl 195 LL
DownerLic # 20001 196 LB
Migcleburg, OR Lic#2000l 196LB BOI
Spijgdae, OH tic #200011 96LB B02
Marlborough MA Lie #2001 1
..
96LB B03
Tennessee
Deparel1t of
Financial fustitutíons
Firt & Secop.d Mortgage
Downers Grve Lic
Lic #0000000300 Brentwood 300 .
Vireiniii ComIonwealth of Virginia
Firt & SecondMortgage
1vidd1ébll~ MEB-557
St ,Lo1ls,
DOWn~Otøve ML-557
Hanover,1 MLB~557
fV-557 .
Cherr Hill,NlML-557
-
Washineton
State
of WashI ngton
Exempt from Iicensing
Deparent of
Financial fustitutions
Wisconsin
state ofWisconsín
Deparent of
Mortgage Baner
1st & 2nd Mortgages
Financial fustitutions
Lic # 1206
¡
I
i
Heartland Mortgage Company
L ¡
Ilinois
Offce of
Banks and Real Estate
First & Second Mortgages License # 0814
Date Issued 5/1/03
I
j
j ¡ i I j
Expiration 4/30/05
e
DEF 11701
1
j
i
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 19 of 20
Rider B
Designate.Offce of
Employe and States Where Orgiation Përtted
Designate Offce of Employee: Southeld 2 - 500 W. Nine Mie Rd Ste#500 Southeld, MI.
48075
Staes in which Employee may origiate residential mortgage loan: MI P A, TN, W A
Employ." Mu.io ct /
e,
~
11
l
%1'
DEF 11702 ~
Case 1:03-cv-02485-MSK-PAC
Document 367-8
Filed 03/07/2006
Page 20 of 20
Schedule A
Loan qffcer Compensation
Fqr all services rendered Employee 11 commission upon ftding of generated by the Employee based
by the
Employee under ths Agreement, the Emplòyer shiil pay the
residential and commercial tiancingobtaed for clients
on
the following commssioi: schedule:
Employee Gënerted Lead
Hearland Led
Hl#
35%*
47%*
CoIiorming
40%**
52%**
Non-Cant
Brokered
30%*
f1#
42%*
* % commission paid on applicable fees less the processing fee ** % commission paid on applicable fees including the processing fee # any loan in which Hearland acts as the Lender
e
foUowig the said loan, provided however. tltany fudsdisbuied two or less days - prior to said payday shall be payable on the second payday followig disburement. The commission paid -on-each- 10an...shaU payale-on the fit-pay day disburement of the funds on
In addition to the above the Employee wil receive a sem-monthy draw of$500~00 agait
commissjpns, so that at no time shall an Employee be any two
paid less th gross wages of$500.00 durg
week pay period.
_.
DEF 11703