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

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

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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

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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

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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

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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
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