Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 1 of 21
EXHIBIT V
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 2 of 21
i
EMPLOYMNT AGREEME
This Agii:engn( e "Agt~~lAent") establishig an emloyieit relatìön$tp is bêteen
HearlløMø~g~d; ,:~¥~(~ixorH~d'Röni~ FIíC~~IpCl.'~~~inercoÎlec1ivelY
ref~toasKe~,!d or:Eployer ),and ,N I\"l-\ . I"~Z-Ii\" .' .. . (the
"Employee"),iGdateaasofths.ídayof Jv.ly .20.Q. .
=~.1ær:dær1i~..:o"
ti~:~:a1b::;;;~~J~
~::l_
putsè~~~~; ..,,~:,Zi:~:~:~~~~=i:~=L~~~~~ai'fur.the
Ì.
emioysth~
cOndn~ßS'aø'~~rSefórt.
:t~. .'.... ',' ..... ." .,'W~P:F~LQ~:"'(~).(+J;~ijflltiYëe
tete$eits .that he"Wjl petÎört his dutiespürsUat totbs Agtøemelit' as. g\?vemeatDyappIicable
stae and federal law ardwil assistotilv HearàDd in the peffoImíice of
mortgage loan
EXISIT NO~ / j;j /1( tJ.s
LA RPl&S
~~
Int. ~
DEF 12893
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 3 of 21
origition actiyities~ (ii) ,Employee r~presents tht Employee sh have no auority topind
Employer tö thepaymént of any money or the doing of any act or thg, or incur apy
n,e):t,
obligation"liabiIity orexpense'torwlich Employer is or maybecotie)iable,wioûtfi
obtag th wrttencons~nto£~ployer.Inthë absence ofEiiplóyet.s prior wrtten êÒnsent,
any clebt, obligatiòn, ,liabîIty orëXpense incur by Employee sh ,be the sole tesöíiibilty of no íiability for or obligaton to Employee rëgatg suc Employee, and Ehnpló¥ër shall have or expe'ne. debt, obligation, liabilty
(b). The Employee acknowledges tht he has been inormed tht the Elploye strcty
forbids the solicitation of any eusome,rs whose loan applications wer~peidig at the tiè of
the
tertion ortheEmpi0yee~~m any previous ~!lplòymen~e,itlerasany employêè or
independent contrctor, for tltp~ose ofswitcifg these loan frm the prevous
employer to
the Eirployer. The Emplóy~e'røpresents ththeshiinot solicitancustcmer "oho~~ loan
applicationsWèrepen~gatthe tIe oftermtion ofanyprevious~~ióyiénteithei,as any
empltiye~or inqcmen~~ntcontractor, for ,the purose ofswtcligthes~'taan'fròmih~cprevious
einÏoyei' to, the Empl~rr. Tlie'Bmployee fuer represent ththe;~~l1ot taeiaiywtften
records ard cdmputerdisks~hicharethepropeTo of
any previo1Iëtpl'óyeran4~,shit )lot usë
for any purse
any such written retKtcl or, qømPiiter disks to solicit any loanapplieånts nor s~heiie any
matenal" sabject to applicablecøpyrght protection
related to, hi empÍò:yent by
the Employer.
boundby (i)any'cdntia6üi~iL~bligalon to a previous Employer thtwoula
(c). The Empl()~et~g~esents that as ofthedateoftls AgretettthemployeIs not EiitpJoyee
restrct. tbe
-----fronrentti41gÍJ!tó ll'¡sA,~:¿ciÀt"',LlÚi in èÍ)' WiJ)' copetigi:itl a l'J:eVIous .:proyGt,(n"J' or at
other coiitractualagrëementtelating to any ful or
par tiëeiplòyient;
hi computer;,pasords à:d;ì.ser name, designted Hearand Inotmon Tech"logy personnel
(e). The Emloyce ag to saegard and kee sect frni otherIleadeiloye
~kd
'.
Int. q(
2
DEF 12892
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 4 of 21
",
~,_~fuø,;~~~æi
(g). The E~~lpr¥'tner represents to Hearand th he un~
fpcinì¡itiqiio :'t6theEmplöyee;:s licenses.
5. '1'~rf~N¡(:âr1mAgteteí1t\may'beteitec;
(i)..b:Y'm.n~~~ñ;.*~~w:ent ofthe.'p3!~;
(ìí)..by~etf1êtp~'\¥tl9út¡eatie upon"\VttJ1Clfi~;
tLgiëIti:Y:t!~¡.~~l~~~!fu+~?,teiyi.witbt~use¡..#pÖri'a:tt~t~~l,.~h'/r~y:~,øt'~'
~llt=~~rl' ... .
hìt~
3
DEF 12894
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 5 of 21
Uponcsuchternatîon:re:ilåIi.dshall contiue to proc~siiïlmortgae loan appliéäons taen
by the
Einployeeför\Elêåiml;ltbough the,dateofsuØii teration. '
" . ...', . "F ,,'~-.
ttatføft
. .:.... "..;. ' ,'::'" ,.' ':": ". . ...:' ",'; '.,,,, ;~;.::':
., ..,...
. .
å. ~gèilal~t~a1:eBdclosingof såi¡!:;i:än;and
b. ~~J;b9ti~;P;Øhìes,dtíe,lldowfgJo,:a~äiçl';asatet 9f'~)iLøân
..":i ." "',:" ,n ..,. ,": ."
:~:~~¥~~,~fi;~*~!~~~~!9f'ia~:~a*?*,~;6f"
~VfV \
oiAV
Imt.
4
DEF 12895
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 6 of 21
7. lmp()SIT,ÇJFFUS: All fuds received by the Enploye,e, puruat tpth
payaie,~~e::t\:~i~~:=r:lrot::::~:=J:::~:::~,~J=:~:
each,'Borrower.
Agteement¡suchas;ïplisatio¡idepösits fbrappi:sal fees' or ctetrepøit.sltàll Dé mae
8. C0MlENSA1'ION'TO PAR1'IES:Heaandagêes tom~e PlIyitntsto the
Employee in accòï:,çanceWith ScheGule A atthed hereto andinCQipQ~ed ~õy refetce into th
A~ént. ",'" , '"
vtdQyHeå
,t;.
'¡pÍ~~~,ptï~s
"'iAU'SUh
CQV!~S~
. ,.. . .....",
, ,.",:,t,~¡.~~~~~~!N~N"S,Ol;IQ)F;~~:t10NAN~1$CT
Int. ~
5
DEF 12896
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 7 of 21
6
DEF 12897
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 8 of 21
(ii)unlessIlealand gives Emplo:yee pnor eXpr~swr~i;pemsìon. dürg his
emplöym~nt imdthii~e~~;~nipIQyee shall notÙsë fóthi ~wn;bimëfit-6Í'diyueto phy
COmpe~tor ()r custtni~Riäiy.other person. fi. cOIpOranOILor'Otbereitityåny,ottbe ,
Coiifdential'J;o:ratibn:~chEmployee may obtai; leam about, ,develop'od:j.e,entfted with
as a reslt ofÈmplQyï:e's'ëmployrent by Htarand; ánd
(C) E~plor~~1Û~?:~~0!VledGes ard agres thataldoclléf~iud tafble
i~~æ~ji~
',"snai1mot remove from Hei~d,;if and Shimcly
';~~ti~~ ~,w
ortagible Cowlimtál """":'" ;,~,',m,.~,~,:.',n,.,;,~in, ~n,.',',lï,',.,.es/,',;, -,..._":,.,~".,P"_.,..,t,..,:,',..O,',:Ss,'es,-,:,,.,,e,,',d,',',s,,~,;,'.oSi, .r'o,'.,.on" ~,'- :er'
(-
'In.;:,U1 /.,
,Io~~
7
DEF 12898
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 9 of 21
(b)
Solicit, divert tae away
or accept orders from or atpt tosölicit,diver t~eaway'
or accept orders from'any person, firm, p~ership" corporation orothere~titYJor whÖÌ
Heaan4has pe~f9mi~"ary setices or with whom Head haa.venDÓr tølaonsp with
the imedíatelypi:ec~ding tW.elve (12) month
perod.
(c) Without li1Îitin~tlt ptçhibitiRn,set fort herci at .i2.3(b),tJe~~pic?yeeISpi;hibite
Ëf~~~¡~~'~.~~
" , )
Tnt. ~
8
DEF 12899
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 10 of 21
13. RETl OF Iæc;ORDS ANPROPERTY AN USEÇlFINT
PASSWORDS: IJPClnt~tionoftbs Agr~c:ent,E1ployeeshaii.~~lëYdêliver al
records, ,notes, datiit~i:i:¡ii1, a,d,anyeqli'iìnent ofan:~e thta;e'ÍEiploy~'s
~esöÏl;oì:,u¡í Ì1tnLiid;1'at are bIi~; Fiii:, " .
Heårancl's pröpet oI,'reIåtè to Heaand's
,',)ì t~~ti(jÏ1;slnotaccess any Cbm:ütér n~rk or
the LoiiApplications Shat al
:a~and interret's' 'tèviously aùthorid password.
l4.BQ,Q~AN:i:rRE~Ø'RS:Alrecöril in rega to
tire tíê ~lcltisivepiperofHearafd.
15. BENl'S,,, '~41lo~Sha bee~gible for al~enefitsa1~weô~ep~y to
=~=:;f.~;i~:~:,=e:~?J:I:leiefts'.as~te'bytlé Boar
.1~~~sf~~
'''~~;~1!~~;19r:
9
16. LAQP. CO:M't soFl AR:
-_.--_._._-._-------------_._.
(a) lntleev~ttlat; Ji:yetProvidesa!atop,C~)J,lpU~~ EmPløreejE11lo~ee
. ... ... andlor:¡:::~~~~l¡~:=::m:::::~~:~:'~iI:.
,',.'". ,". ..,' ,
=:;~e:í~~å1Ibê;~'~~~~lY~i:ed to;Elo~. EnpIQyC, ,. , , ~ ~i::n
'. '.håve no ~onsbilty.to Sàegp suh item aIchvül"not be
'",''''' """'00 "',' "'''''1'' amagi' , Or, sto 'en. Int. t-
lciyee;brlgs latop cöînn~;()SQftar()~.t91t9P:ies of
nEF 12900
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 11 of 21
a~~intsEmlbYer. or any , ÎP'Enp!,yets
,.. ','~ta) to ,ee'and
:~jtSø!f
,.ph
aml.a1
Jnt. (/
10
DEF 12901
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 12 of 21
Employee ôftheptoVi~i~ns orParagia~h 12. 1
(AConfdentialan Propriety InOántioncg) or
Parh 122 (ANmötiêitJltl9rt~) or Pargrh 123(Restrcti"e:eov~) orl2.6 (AAvoicice ore' ')OrtJsA,greeient"Employer shalhavethe9ptit:D¡ ÌI,\íl:sole
=:~i;~~Wng,., YCi;æç:~~::~~~~:~;~i='rii;mI:::~:'
remedy of Aibitra:t;öiî~lt,:d ;iiot1ïpplytoremedes avaiíïletò the::eniplôyerpurtto Secon
12hetëin. ' ,
21.nI~~lGAtIQN :
_~ 'F~æis:e
TheEmployee hereby indeesand Saves ~ss the
(b), HeaìiiØ;t~ê;li~'in ths Agrementàt,for convenëlice;,ör réerceony and
sha not defieòi limìt.tñepn)visio;nherf.
=~~~~-;:=~
Whìch,,~d2Ð,:¿.;:....,: "t~r~r:'~::g:I~:l:;=::e:~~t.
Int. ~
11
DEF 12902
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 13 of 21
(e) Jürs~ëto~,o~C:0ii', Any judicial proceedigs b~eenthepar iider th
Agreement,shaili:.l1 6io.ugÍtári tle state in which the designted òffce asset fort on Rider B
atJIed'jiereto ís!ocated,.
(t) Paies:m
inure
t. All of
the term, covenats and condtLns,h~rejn co~Wiec:tsh
to thë benefi£å
'é'bipding upon
the pares h~, theirh~SUces9rs"anl:llsîgn
~tI§l5r~
~~~_Jt....
Ileces~~~ ~e,maculeshållimlude;.the feie,cir I1eu~ and
:',' ¡¡d',Vice versa.
dth;:~~:~~11
it~ttêil' consent
Int. Ii
12
DEF 12903
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 14 of 21
(ii) The
EmploYer
sha have the right to assign
ths Ageenent and allofits
6bIígatjo~ herunder to any;peron, firm or corporation to whom it sell ort:feri anmjör
porton of itsá.ets.
, " ,(ii). Lt~dà?~iî; 'es. In thee~erH:!ie Emplöyc: violates;th~.ptÓviSions'of~~on
C~:~~I~~¡i¿~
"'on. TheEniployeeautho~theEmployer, at its sole
renåbledfs'\ " " '., ,..' ".,"..,', ,,"i' . ',,¡qplicable la,w, tö,obtaa baøk¡wun!lc;heck on the
Enloyeefrg!ltie to tíiDewlfktîìs AgieIt is in effec
-~--- ~~~:W1ÆR:E; th par!m~i; executtl A~et~'dä ft abve wrtten. ' ,
Emplóye
'.",~, ~""""".,.,;"'.,
~!,;:: :::'.;';,'!:":.';¡,¡'~",;p.:~~¡;~",'..,
EIiployer
Hearancl' Hüi:eFince.,l'c.
R#lld¥9,tfgae C?Pl~y
s~"'~':i;:,d ,.,.. "'/\ ';,,:d' ,
"'.,",A;¿r..)"~,,¡,l:.~#1~~~,' ,¡
~i~er.k "ó~69~J~
'Pl' , ','..'.', , ..,
Emloye~s N~" Social Secty
~? l- lot? -$r~~;'3.d
:By:
/I.~ .i¿L Astmty.""~t
kz\tg\38093\èÍIpl~~:~t4dô\3t25;t03\3~ 3 i ~03\4 i 4~03\5~5"(3
13
DEF 12906
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 15 of 21
Rider A
Licenses of
Healand as of -,June-- 2003
Arizona
State Banng Departent
Ffrt & Second Mortgage Licene #
Gilbert Brach Lic # BK-0904317 Middleburg Lic # BKBR-010372l Downers Lic # BKBR-OI03722 Kaas City Lie # BKBR-OlOitOZ3
Laing, MI Lic#B:KR.OI04698
S1. Louis, MOLIe #BIGR~OH)4699
Aurora CO Lie#BnR-Oi03907
Independence, MO Lie # B:£R-O 10554
I
Colorado
S~eof Colorado
Deparent of
Mortgage Lieene #
Law
Downer Grove Lic#09843I Middleburg Lic #098431-001
Auora COLic #098431-002
COilneëtiëUt
'Sf~~"'Òfê6Dnê"'riciit
Firt Mortgage Licene
Downer 6t.o'~e,1.ie #(j8,in
Depåleáit ofBankIiig
Consumer Credit'Pivision
Middleburg Lic # 10217 Marlborough .MA Lie # 11171
Second Mortgage License
Downers Grove Lie #71 08 Mid,il~bnrgLie # 1021S
Malborilïígm lvLiè# 11172
n*~äë;.'
Öm&;,~ftÍe State Ban"CØissiener
FirSên.d'Mörtga~ Lic~
Downer Grove, IL Lic #143875 "Hanover, MD Lic # 143877 Min,iiebiig Hts Lie # 143876
-f'~1irÏ'R:~d~î:rili:~e
'i:Wìsidf
Fnst/S~QndMøi:eLi,c # 12179
lidJana
Ståifé ôt'Indiana
Securties Division
FirSt Mortgage License # 7319
Second Mortgage Lie # 95~0094LB
DEF 12907
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 16 of 21
Iowa
StâófIòwa
IowaElivisÎon òt"Báng
Firt/Second M:ortgageLie # 640
Kásas
Òff~~(lf ~eStlte?åí ;8omii$sion~r
Firt & Second;~:M~,zwge
Division of Consuièf& N'pitgage Lending
Downers LicdtlQ98...7,,44
S1. Lo~s.Lc #t¡a~S,j~'74f04 Mldclëburg,.#19~84S744()3 AUrra Lie #1998~37#05
OV~laidLie#l.~~S..314+Ö6
æ~L;;7
;;lit ëtt¡fmaalai'.J#~titùtions
Fiì&;'S~~n4M(jttgâ,g~ 10iS
Lic#734"8¿:ï39
=~,ijfIIk¡r,L.,~ing.aniLRegûtiõIl
MäsSâ(bjls~tt" ;,
f)fVi~pri'g~Båös,åI~.'Lq~~g!Icies
. ..,
=Eîf~Piij"Ìttit1~õ#~
, ,.' '" "s,~w: DtiäieïitöfComterce
, '~fig:i~~,
Firt Mortgae
DownlnLic # MO 20229291
DEF 12908
III
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 17 of 21
.. .
Missouri
DlviSlclI ofFi'rance
Firt & Second Mortgage
81. Louis Lic # 99~344
Independence, MO #01-3-4.1
New. Hliiniish ire Firt Mortgage
$iåtêdr~New aåfpsbre.
Licene
:B31g Deparent
Downer Grve qt.~~067-1\fl
Wdilt:pUtgLic# 9G6~~Rtl3CH Marlborough Lic #90õ1~-:M:a:'Bæ
NeW.MeìièO
Sta'öfNtW lte~ico :Regttiozi ard tiçêrsing'I)eParent
9bio'
Firt & SecoIl Mortgage
Downer Lic # 00994
ÖfiørJèntq'~.G:9itØne
ØiVi~Il',of'Finci¡J:'Iöstitiøns
FII'M,ol'gage
::l~gt~c~Kl;ø
Fainïüc¥ ','
w ortgtöliti~o, ,,RUO
"'8~ Mottgt SpIigdae'SMil649
Pãibônï SMo/650
Midâiëbur,SM7645
Firt Mortgag~ H4(;
GrT " " *:#1517
"..001
" ,,5;17.00
,#î:s$~~OØl
Middlebg ,Lièdfl~17.003 S0l1theldL1è#15f7.Q04 Sout:êidLic#1517,O:OS
~~~iC#;¡~~6
MIddeburgLic#i833~003
Southeld Lic#f833.004 Sout:eld Lie #1833.005
DEF 12909
"I
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 18 of 21
,RhOdeIsland
State otilode Island
Depllent ofBtïsiness Regütiòn
Firt 8! Second Mortgage Downers Lic # 2QOQiW5 lL
Downer pic. #
200pt 1"~6tB
~::J:~Ó~~7~~:g::~~-:gi
Tenfëss,ee
Marlbörough MA Lìc #2000lÌ9'm: B03
D'èpiìent ofFinarialIntitutións
Firt & Second Mort~gë Downers Grve Lie
Lie #O,0000003QO
BrentWood 30.0
'¿::I~~ëåthøfVit~ia
Pirt~iS~()pdM~tt,ge ~ddl~~'ü, ',' ''37 St.U'," . 7
~:r,,: " ... ...", ....
.,ialJíßtitutlons
Cl~nill~~J;;~:'557
EMempt ~~g
Wisconsin
~~~~311t¡ai¡;ftit)iti9tis
Mortgs,g~B~~r 1st &i~¡~øÍt~ges
LiclM2,Q6'
/_n
lI~".,."..':~'~o~gag~,a#ni, i~,.,a:iif
'.,-.. ... . '.
UliöiS ':ø~ÓfBån' anii.a:øåiXEstäti:
Firt & Secïid'Möitgë
Lìcene # 0.814
Date Issued 5/1/03
Expiron 4/30/05
DEF 12910
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 19 of 21
."j
Rider B
J)~gnted',offceofEmployee and Sta Where Orgion Pertted
D""es"",, .,'",gn,-,'.,',a,t',oo ':,',_,'",'0,:"" fñ,:"Aè"O",."f"""E, m,".., "",Pt, ø,':',Y",',',e" e:"Ma, '" la, ,." d" 2 - 423,1 ,P,QSta, ,Cour, "S,"te2,'" 04,', 'P,: ,as"',, ',à,',d,'~,':~, ':;,;,',: ,lUl2
. .',' ""._ ,"," ", ,PAd~('
Stâ~"ir'Ylloo,'~IØy~"iDY:.RÅgii;,Ï"esîdenaal:,mort~age,leaI: .¡~'VN'DE
l
EûtoýéëJli~, '.~,
),
)
DÉF 1291i
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 20 of 21
0,
Schedule A
Loan Offcer Compensaton
For all servicestefia~dbY the Employce'under th AgreeJpen,;tle;Enptcwetslpay1te
Emplöyeeacomm~sio~ upöïHwidigofiesidential andcomiercial1iclg òbtäed forelIents
generted by'the, EIiprôyêe based'on the followig commssioh scheduIe:
Hearlad Lead
Eniloyee ei'nerated Lead
47%*
,HM#
CönföimIIi'g
35%*
HM
,Non.Conf.
40010**
52%**
Brokered
30%*
42%*
lic¡ilefetSles ,tltpr~ésSingJee.
ä:::1h~,lr;g;'tIePro~~g,fee
"1:,:~~~r;:¡Lri~~g::~~~'~~
"jc".. ."
DEF 12912
. "-"".'"
Case 1:03-cv-02485-MSK-PAC
Document 367-7
Filed 03/07/2006
Page 21 of 21
Schedule B
Senior Loan Offcer Compensation
Employee a cortissíøp upon funding ofresÍdentiaLand commerCial fiancin obtaed generated
For al servicè~ rI;Iidered by the Employeeunqetths Agreement the.EmpløYetsh pay the for clients
by the Employee based on the followiiig commsion schedWe:
Hearland Lead
Employee
GeneIated Lead
55%*
HM#
Conforting
35%*
HM
Non-CoM.
40'%**
60'%**
Brokered
30'%*
50'%*
· % comÏ!S$iøncpaÍ¡!.,op 'åppIi~bll? ~(: les, the pin~iigt~
· ** %'~S$on,:p~don~Rlical(Hée'iicln~it\g, thl?;;f;~psinfee · # an !oål",i~:,~¿n:Fteälad ~' as the l(:nder
Boíi1Ï on HöuseLedif(ieHees on house lead$,only)
0-10,000'
10.000~15,OOO
x x
0%
10'%
15,000 +
x
20%
;,,". sin~;l~~~fi~l'
In~ddít~~,tothe abnvethe EmpI?yeewi receiveasei~m()I1tbYdrwof$500"aO
::: :;:~SS~k~;~~tW~i:ttÜeshlUJitEmplOyee'bèrpaldleiS¡tJ¡ln'~~W~ge$ of$500.00
DEF 12913
"I