Free Reply to Response to Motion - District Court of Colorado - Colorado

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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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

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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