You are also required to fulfill State of Illinois continuing education class requirements in order to renew your license every two years.

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1 To: License H. R. I. Agents From: Lani Sherman Re: Rules referring to the license holding company The purpose of H. R. I. Referrals, Inc. is to act as a holding company for realtors who do not wish to be active in the real estate business, but who wish to provide referrals to Coldwell Banker Honig-Bell in return for a fee. You will be required to sign an Independent Contractor s Agreement with H. R. I. Referrals, Inc. and to pay a $50 annual membership fee. In addition to the fee you will be required to provide two qualified referrals per year. You are also required to fulfill State of Illinois continuing education class requirements in order to renew your license every two years. Upon the close of each referred sale, a 20% referral fee is paid to H. R. I. Referrals from Coldwell Banker Honig-Bell (or any other company we ve made your referral to). This referral fee is split 60/40 (60-% to the referring agent and 40% to the broker). For example: On a $120,000 listing 6% commission $120,000 x 6% = $7,200 total commission 2 = $3,600 listing commission 20% of 3,600 = $ 720 to H. R. I. 60% of 720 = $ 432 to referring agent Questions??? Please call Lani Sherman at

2 H.R.I. REFERRALS, INC 100% INDEPENDENT CONTRACTOR AGREEMENT THIS AGREEMENT, made and entered into this day of, 20 by and between HRI Referrals, Inc (hereafter referred to as HRI ) and (hereafter referred to as Independent Contractor ). WITNESSETH: WHEREAS, HRI is engaged in the business of providing referrals (as defined in the Company Policy Manual) to other licensed real estate corporations, brokers or agents who are engaged in business as a general real estate broker in the Will County. Illinois area or nationwide; and WHEREAS, HRI maintains an office, properly equipped for the proper operation of said business: and WHEREAS, Independent Contractor is a licensed real estate broker or sales person in good standing with the State of Illinois; and WHEREAS, it is deemed to be the mutual advantage of HRI and Independent Contractor to form an association hereinafter agreed to under the terms and conditions hereinafter set out; NOW, THEREFORE, for and in consideration of the promises and of the mutual covenants hereinafter contained, it is mutually agreed as follows: 1. Upon execution of this agreement and each January 1st thereafter Independent Contractor shall pay an annual fee of Fifty ($50.00) Dollars to maintain active association with HRI. 2. Independent Contractor acknowledges and agrees that HRI shall have no obligation or liability whatsoever to Independent Contractor for State licensing fees, workmen's compensation, Federal and State payroll taxes, social security assessments or similar taxes or liabilities. Independent Contractor acknowledges and agrees that they will remain licensed continuously by the Office of Banks and Real Estate of the State of Illinois to operate as a real estate broker and/or salesperson in Illinois. 3. Independent Contractor shall register all referrals with the Relocation Department of HRI and should allow 48 hours acceptance time of referral to determine that referral is not presently working with a licensed real estate agent of the company to receive the referral or been referred by another HRI Independent Contractor. It is expressly understood that the sole extent of the Independent Contractors dues shall be to register referrals (i.e. no showings or listings). 4. HRI shall not be liable for any expenses incurred by the Independent Contractor, or for any kind of this acts, nor shall the Independent Contractor be liable to HRI for office help expense and the Independent Contractor shall have no authority to bind HRI by any promises or representation. Independent Contractor agrees to defend, indemnify and hold HRI harmless from all less, cost, damage or expense incurred by HRI including, without limitation, attorneys fees and litigation expense by reason of any statement, misrepresentation or other act of Independent Contractor and that this agreement to hold HRI harmless shall survive termination of this agreement. 5. This contract and the association created hereby, may be terminated by either party at any time upon written notice gives to the other; but the rights of the parties to any commission which accrued prior to said notice, shall not be deviated by the termination of the contract. 6. If, after termination hereof, it is found that the Independent Contractor was paid a share of any commission which was determined not have been due HRI, then HRI shall have the right to deduct this amount from any money or property which it holds for the Independent Contractor, or, if none, the Independent Contractor agrees to refund this amount to HRI immediately upon notification of the amount to be refunded. 7. Commissions earned by HRI, when collected, will be paid to the Independent Contractor of HRI for referrals registered by him and accepted by the company or broker receiving the referral according to the commission rate schedule of HRI in effect at the time the commission is earned (presently % of total commission paid to HRI on each referral) as published in the HRI Policy Manual as may be amended from time to time. It is understood Independent Contractor commission is paid on closed sales only and only on monies collected. 8. Independent Contractor agrees to abide by the laws, codes and regulations of the State of Illinois and any other governmental body of authority having jurisdiction. 9. This Agreement does not constitute a hiring of either party. The Independent Contractor hereby acknowledges that he/she is not an employee, agent, servant, joint venturer or partner of HRI. H.R.I. REFERRALS, INC. By Date Independent Contractor ADDRESS: Phone No.: SOCIAL SECURITY NO: - -

3 NEEDED TO TRANSFER LICENSE TO H. R. I: - SIGNED-OFF LICENSE - ENCLOSED FORMS (CONTRACTOR AGREEMENT & POLICY MANUAL), SIGNED & RETURNED - $25 CHECK TO ILLINOIS DEPARTMENT OF FINANCIAL & PROFESSIONAL REGULATION. TO TRANSFER YOUR LICENSE. IF THIS IS A FIRST TIME LICENSE THE FEE IS $ $50 CHECK TO H. R. I. REFERRALS, INC., FOR YEARLY DUES. (AFTER JULY 1ST., DUES ARE $20)

4 POLICY MANUAL H. R. I. REFERRALS, INC. PREFACE: The purpose of this policy is to set forth guidelines and criteria to ensure smooth, effective and successful achievement of our goals. ORGANIZATION: H. R. I. REFERRALS, INC. (hereafter referred to as H. R. I) is a separate corporation organized for the purpose of providing referrals to licensed real estate corporations, brokers or agents. WHAT IS A REFERRAL? A referral is a lead consisting of particular information of a prospective buyer or seller which is sent to H. R. I. and then distributed to cooperating brokers engaged in the general practice of real estate in the area wherein the subject referral property is located. REFERRAL AGENT: H. R. I. is composed of referral agents who activate their Illinois Real Estate License with H. R. I. H. R. I. licensees will be on a referral basis only. Agents will not be members of the local Board of Realtors. Agents will not participate in any Board activities or functions, nor attend any educational or social functions of the Board, nor participate in any MLS activities or use any MLS statistical data. Agents will not be required or allowed to list or sell any property or participate in the negotiations or execution of any documents, nor attend showings of property, canvas farm areas, hold open houses, attend listing appointments, or closings. Referral agents will not make use of any facilities used by licensed real estate corporations or brokers engaged in the general practice of real estate, including telephones, conference rooms, MLS services, stationery, etc. Any action to the contrary will be cause for dismissal from H. R. I. DUTIES OF REFERRAL AGENT: The referral agent must make contact with the lead and get permission to refer him/her. The referral agent must then obtain from the client/customer the name, phone number, current real estate needs, and any other details you can determine while reinforcing the professional way they will be handled. As soon as this has been accomplished, call H. R. I. And give Lani Sherman the information you have obtained. These customers/clients will then be turned over to a licensed sales agent engaged in the general practice of real estate of your choice (or cooperative broker), or we will choose one for you, in the effective service area of the referral. H. R. I. reserves the right to place the referral with an agent of choice if H. R. I determines this would be in the best interest of and serve best the needs of the client/customer. PLACEMENT OR REFERRALS: The H. R. I. Manager will make every effort to place the referral with the office and/or salesperson of your choice. If you do not know any sales agents, we will be happy to make the choice for you. If you have a preference for a particular sales agent, or if you were recruited by a particular sales agent, this should be made known to the H. R. I manager who will attempt to place your referrals with this agent. However, H. R. I will reserve the right to place the referral elsewhere if is out of the effective service area of the agent of your choice if it is felt that another agent could better serve your customer/client (for example, if your agent is out of town or unavailable), or if the agent is not a participant of the H. R. I. Referral network.

5 RECORDING A REFERRAL: All referrals must be recorded with H. R. I. The referral will be credited to the referral agent who submitted it first. If it is disclosed that the customer/client is already working with a Real Estate agent, you will be contacted immediately and the referral will not be accepted. Referrals made directly to sales agents and not recorded through H. R. I. will not be honored under any circumstances. In addition, a referral cannot be re-referred. In other words, you cannot make the referral to one agent, who then refers it to an agent in another area. FOLLOW UP: The referral agent will be contacted periodically by the H. R. I. manager and given the progress of each referral submitted. When you hear from your referral and obtain some additional feedback, please pass it on to the H. R. I. Manager. The Manager is the liaison between the Referral Agent and the agent handling the referral. Upon a sale or listing being obtained, the referral agent will be informed immediately of such details as sales price, address, and approximate closing dates. REFERRAL FEE: Referral fees received, as a result of any referral will be paid to H. R. I. agents as follows: Sixty percent (60%) to referring agent (Independent Contractor). ADMINISTRATIVE FEE: A Fifty ($50.00) Dollar administrative and handling fee will be assessed annually on January 1st. Agents joining H. R. I. After July 1st. in a calendar year will be charged Twenty ($20.00) dollars for the balance of that year, and then Fifty ($50.00) Dollars per year thereafter. OTHER CHARGES: H. R. I. Agents will be required to maintain their Illinois Real Estate License (salesman or broker) at their own expense. Referral agents will be responsible for any other expenses incurred as a result of their association with H. R. I., i.e. automobile expenses, telephone expenses, or postage. No mailing, advertising, printing or promotional activity will be undertaken by the referral agent. RENEWING LICENSES OR CHANGE OF ADDRESS OR OTHER INFORMATION: Please contact the H. R. I. Manger on any change of address or status in your license, or a change in your telephone number. We will be contacting you on a regular basis with newsletters and other information. It is important that we are in good communication at all times. Upon termination, agent agrees not to disclose nor furnish any person or entity any information concerning H. R. I. Clients, customers, properties, prices, policies or relationships nor remove any item belonging to or associated with H. R. I., as the same are the sole property of H. R. I.

6 HOW TO SIGN UP: Contact the H. R. I. Manager. Whenever possible, she will meet with you personally. You will be required to submit your Illinois Real Estate License. You will also be required to read and sign this Policy Manual, and pay the administrative fee. This agreement does not constitute a hiring by either party. H. R. I. Will not withhold any taxes nor make any payments for workmen s compensation, unemployment compensation or any insurance for any agent. Both parties agree to complete the Independent Contractors agreement and any other papers necessary to reaffirm and maintain Independent Contractor status. The agent will be responsible for filing their own taxes. Appropriate records of income for tax purposes will be provided. If either party shall default or breach any part of this contract which results in any loss or damage to the other party, the defaulting party hereby agrees to pay the other party all loss or damage including legal fees and further agrees to hold the other party harmless from any claim, demand, cause of action, or lawsuit which may result from or be caused by such wrong doing. The Agent further agrees to indemnify and save H. R. I. harmless from any claims, demands or judgments including legal fees and costs incurred in investigating and defending such claims, demands or judgments arising out of this agreement and agent service as an Independent Contractor. MINIMUM PERFORMANCE: A minimum of two (2) qualified referrals per year will be required in order to maintain your license with H. R. I. If at the end of the calendar year the agent has not reached this minimum performance, consideration for termination will be given. H. R. I. may change the terms and conditions of this Policy Manual at any time without notice. This is to confirm that I, the undersigned, have read and acknowledge the contents of this H. R. I. Referral, Inc. Policy Manual and will abide by the contents thereof and as may be amended from time to time. Dated: Social Security Number:

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