Introduction:

The Company is licensed by the California Department of Real Estate (DRE) under the following name: Loans Realty Group Corporation dba as Loans Realty Group, Capital Coast Commercial, Capital Coast Lending and Property and Funding. The corporation’s DRE license number is 01861000 and the broker’s, Emil Dollesin, license number is 01465357. The corporation’s NMLS license number is 245433 and the broker’s, Emil Dollesin, NMLS license number is 242753. Loans Realty Group Corporation (here and after referred to as Company) is licensed by NMLS under DRE only and not DOC (Department of Corporations). We are licensed only in California and we are a California corporation. The Company is a full-service real estate and mortgage company with main office located at 1121 Ventura Drive, Pittsburg, CA 94565. We are committed to the very highest level of professionalism to our local and statewide clients. Our main goal is to have complete customer satisfaction. These Policies and Procedures manual is a reference guide on how to conduct business on a day to day basis. This is only a guide and Associate-Licensee should always use their professional judgment. Associate-Licensee is not an employee of the Company, but as an independent contractor. Associate-Licensee is under the direction of the Company’s broker as the results of the work, but not by the methods by which such results are accomplished and will execute an Independent Contractors Agreement that defines this relationship in detail. For clarifications, an Associate-Licensee is either a licensed real estate salesperson or broker whichever real estate license you possess.

Company Philosophy:

Achieving a reputation for service and excellence above and beyond the standards of our competition is our paramount goal in business. Achieving that reputation comes from a dedication to consistent service, focused agency activities and ethical business practices.

Associate-Licensee Relationship:

Associate-Licensee is not an employee, but an independent contractor and must fill out an Independent Contractors Agreement (ICA) and a W9 tax form. You do not have an employee – employer relationship with the Company. You are also considered an independent contractor for purposes of Unemployment Insurance. You are associated with the Company for an unspecified term on an at-will basis. Except where it is otherwise expressly agreed in writing with the Company, either party may terminate their association at any time with or without cause or reason. To complete the ICA package, Associate-Licensee is required to provide Company the following items:

• Signed Independent Contractors Agreement and Exhibits

• Signed Policies and Procedures Manual

• W-9 Tax Form

• Copy of valid Driver’s License

• Copy of Social Security Card

Copy of valid car insurance If Associate-Licensee fails to provide the above items in the time specified by Company, then the Associate-Licensee’s most recent due commission check will be withheld until completion of hire package.

Transaction Coordinator:

All Associate-Licensee must use the Company’s transaction coordinators on all real estate transactions, except what is specified in Exhibit B. All DRE required disclosures must be signed by all parties and returned to the Company prior to disbursement of sales commissions. Transaction Coordinator’s responsibility is to have required Sales Disclosures signed by all parties to the transaction including any Company proprietary disclosures.

Transaction Sales Coordinator:

Use of our Transaction Sales Coordinator (TSC) is optional to assist you in your real estate sales transaction. The TSC still needs to get your approval of all CAR forms (including Addendum, Contracts, etc) prior to having the Principal esign the CAR forms. The Associate-Licensee must instruct the TSC of what they need or want verbatim in an email or through the use of our Portal or Mobile App, and the TSC only transcribes those instructions into CAR forms. The TSC will not create or originate any CAR forms without the Associate-licensee’s written instructions.

Real Estate Forms:

All forms must be accessed through Zipforms Online provided by the Company or the use of our Transaction Sales Coordinator.

DRE Licensing and Education:

You are required to maintain a valid California real estate salesperson or broker license in good standing while associated with the Company and/or NMLS MLO (mortgage license originator) license if you are also conducting loan origination. If either of your licenses expires, is suspended or revoked, you may not engage in any activities on behalf of Company for which a real estate license and/or NMLS MLO license is required. The broker may designate another Company Associate-Licensee and/or NMLS MLO to handle your clients for sales and/or loan transactions during any time your license lapses, and allocate such reasonable compensation to that Associate-Licensee and/or NMLS MLO for work performed. Associate-Licensee is responsible to meet the education requirements of the California Department of Real Estate and/or NMLS to maintain their respective active licenses. If Associate-Licensee’s license status shows “expired” on DRE website (www.dre.ca.gov) for salesperson or broker license and/or NMLS website (www.nmlsconsumeraccess.org) for MLO license, then Associate-Licensee’s real estate sales and/or loan activities will be suspended with Company until the status is back to “active”

Referral fees paid to outside brokers in behalf of their Associate-Licensee:

Referral fees shall only be paid to the broker of record of any state licensed real estate entity or individual. There must be a written referral fee agreement between our Company and the referring broker, and approved by Company’s broker prior to close of escrow. All referral fees are to be paid out of the Company’s Associate-Licensee’s gross share of commissions and paid to the outside broker of record in behalf of their Associate-Licensee. A social security number of the referring broker or EIN number is required, along with a signature of the referring broker, in order to process the referral fee.

E & O Insurance:

All real estate transactions are covered under our E & O (Errors and Omissions) Policy paid by the Company through our insurance carrier. Associate-Licensee is responsible for the $2,500 deductible on any transactions brokered through Company that result in a lawsuit that they are a part of.

1. Except as provided below, the cost of the defense of the claim, or to defend or protect against any potential or possible claim where the Company or you are not involved as a party, including attorney’s fees, and the cost of any settlement or a judgment (collectively the “costs of defense”), shall be allocated between the Company and you in the same percentages as per your Independent Contractor Agreement or prospective transaction that led to the claim, whether or not the transaction actually closed.

2. You will be responsible for all costs of a claim if you fail to follow any law, regulation or company policy as set forth in this policy manual, and that failure results in a judgment or other final adjudication based on that failure.

3. You will be solely responsible, and shall reimburse the company, for all the Company’s costs of defense if a judgment or other final adjudication on any claim adverse to the Company and/or you establishes that  dishonest, fraudulent, criminal, or malicious acts, errors or omissions were committed or results in a finding of intentional tort, slander, defamation or any conduct which leads to the imposition of punitive, exemplary or multiple damages, or fines or penalties, or establishes discrimination on the basis of race, creed, religion, ethnic background, national origin, age, sex, handicap, familial status, physical disability, sexual preference, or any other unlawful classification.

Trust Funds:

Broker DOES NOT have a trust fund account. DO NOT touch client’s checks or cash as part of the sales or loan transaction.

The mishandling of trust funds is the number one reason real estate agents and loan officers licensed by the California Bureau of Real Estate have their licenses suspended or revoked. Under NO circumstances will an Associate-Licensee accept earnest money deposit checks. Do not handle any money in the form of check, money order, cash or otherwise, regarding good faith deposits, appraisals, home inspections, repairs, credit reports, or other service providers. Associate-Licensee must tell the Principals to keep such funds in their possession until further notice by Associate-Licensee in where to send or give in person of such funds. Appraisal report and credit report must be paid by credit card through the Company’s credit card authorization form only either by AssociateLicensee or principal. These 3 rd party services do not accept check payments.

Disputes During Escrow:

If a dispute arises during escrow between buyer, seller, listing agent and/or selling agent in which the company is involved in the transaction, which cannot be resolved by negotiations between the parties and the agent(s) involved, and the company determines that it is in the best interest of the company to resolve the matter during escrow rather than risk a potential claim or litigation after close of escrow; then company’s broker has the right to negotiate a resolution of the dispute which may involve a reduction in the commission to be received, or a credit given to one of the parties. In that event, and regardless of actual company or Associate-Licensee liability or responsibility in the dispute, the Associate-Licensee(s) and the company will participate in the commission reduction or credit pro rata.

Sexual Harassment Policy:

The Company disapproves of and does not tolerate Sexual harassment of any kind. All Associate-Licensee must avoid offensive or inappropriate sexual behavior towards anyone including your clients and other associates, and are responsible for assuring that the workplace is free from sexual harassment at all times. The Company prohibits: unwelcome sexual advances, requests for sexual acts or favors, with or without accompanying promises, threats or reciprocal favors or actions, or other verbal or physical conduct of a sexual nature which creates a hostile or offensive working environment for everyone, including your associates and your clients. Complaints of sexual harassment will be promptly and carefully investigated, and the complainants are assured that they will be free from any reprisal or retaliation from filing such complaints. Any person who has a complaint of sexual harassment by an Associate-Licensee should immediately bring the complaint to the attention of the Company’s broker.

Office investigations will include interviews with all relevant persons, including the complainant, the accused, and other potential witnesses. Associate-Licensee is assured that the privacy of the complainant and the person accused of sexual harassment will be kept strictly confidential. The Company’s broker will review findings with the complainant at the conclusion of the investigation. If the investigation reveals that the complaint appears to be valid, immediate and appropriate corrective action, up to an including termination will be taken to stop the harassment and prevent its recurrence. If the validity of the complaint cannot be determined, immediate and appropriate action will be taken to assure that all parties are acquainted with this sexual harassment policy and to avoid sexual harassment in the future. The above policy also applies to harassment of any kind (ie verbal abuse, physical abuse).

Termination:

Your association with the Company can be terminated by either party, with or without cause, at any time upon written notice given to the other party. If this agreement is terminated while you have listings or pending transactions that require further work normally rendered by you, the Company’s broker will make arrangements with another Associate-Licensee in the company to perform the required work. The Associate-Licensee performing the work shall be reasonably compensated for completing the work, and such reasonable compensation shall be deducted from your share of the commission.

Listings:

Listings are property of the Company, even upon your termination. Within 24 hours after notice of termination by either party, you must provide the Company’s broker with a list of all active listings taken by you, and all pending transactions in which, if completed, you will be entitled to compensation from the Company in accordance with the terms of your Independent Contractor Agreement, or other written agreement. You specifically agree that you may not contact the sellers of properties where listings were taken by you for the purpose of directly or indirectly soliciting or inducing the client to terminate their listing with the Company.

Additional Company Rules and Procedures:

1. No advance fee paid by principals to Associate-Licensee for ANY reason unless it is accepted and approved by DRE. Need to provide this written approval by DRE to the Company before funds are paid by principal to Associate-Licensee.

2. No payments made outside of escrow by principals that is not listed in the Closing Disclosure.

3. All credit reports will only be ran if principal wet signs a borrower authorization form PRIOR to Company pulling their credit report. Associate-Licensee must request proof of principal’s identity by requesting to view and photocopy their driver’s license or any government document that has their picture and signature on the same document.

4. Associate-Licensee must tell principal(s) that signatures on loan documents must be their original signature and not stamped (ie Docusign or PDF).

5. Any Associate-Licensee whether NMLS MLO licensed or not, may not ask loan processors to quote rates or discuss loan terms or loan disclosures with borrower(s). It is the responsibility of the NMLS MLO Associate-Licensee to discuss those documents with borrower(s). Also Associate-Licensee may not discuss borrower’s financial data in detail with other parties, other than lender and Company, without the written consent of the borrower(s).

6. All commissions due Associate-Licensee must be written and paid directly to the Company first either by Company’s wiring instructions or mailed to the main office of the Company, and from there it will be disbursed to the Associate-Licensee by the broker of the Company.

7. Associate-Licensee must follow all MLS rules for listing. Any MLS violations paid by the Company in behalf of the Associate-Licensee must immediately reimburse the Company and correct the violation immediately.

8. Associate-Licensee must first check the MLS or call the listing agent for showing instructions prior to entering any homes for sale or lease.

9. All advertising media designed to solicit the creation of a professional relationship between the Associate-Licensee and a consumer, or intended to induce a consumer to contact the Associate-Licensee about any licensed services, must include Associate-Licensee’s full name as it is written in DRE’s agent license look-up along with their salesperson and/or NMLS MLO license number and must also include Equal Housing Opportunity and/or Equal Housing Lender depending if it is sales or loan advertising or both. It must also include the Company’s DRE and NMLS license numbers.

10. Associate-Licensee cannot advertise as a “Realtor” in any media unless they are a member of the National Association of Realtors and California Association of Realtors, and the Company is not a member of either association.

11. All suspicious activities by principals or other Associate-Licensee that is deemed unethical or violating any laws or regulations must be reported to the Company’s broker and/or management team and from there will be reported to proper authorities.

12. Associate-Licensee must time to time review the Real Estate Business Resources (http://www.dre.ca.gov/Licensees/BusinessResources.html) for helpful information to avoid future pitfalls and mistakes by the unsuspecting Associate-Licensee.

13. All expenses are Associate-Licensee’s responsibility.

14. Associate-Licensee will work from home or their office of their choosing and use their own equipment and supplies.

15. Associate-Licensee will work on their own time and will not be governed by Company.

16. For loans, Borrower must prepay all appraisal fees and must show POC (paid outside closing) on Closing Disclosure and Combined Settlement Statement.

17. CAR Form Verification of Property Condition is required to be filled out and signed by all Buyers no matter if the Associate-Licensee is representing the Buyer or not. Associate-Licensee must make sure this form is filled out and signed by the Buyer.

18. If Borrower does not pay appraisal fee, then the Associate-Licensee is responsible for payment to appraiser, and if it is not paid on time to appraiser, Company may front the payment and Associate-Licensee will be responsible in reimbursing the Company as soon as possible.

19. Any extra commissions and/or payments made payable to Principals, third parties (ie family members, friends, associates, relatives) or Associate-Licensee shall not be paid outside of close of escrow (excluding normal fees such as appraisal fee, credit report fee, any inspection fee), unless approved by the Company and/or BRE.

20. No hiring of individuals for duties that require a California real estate salesperson or broker’s license whether payment is being made by Associate-Licensee or not.

21. Per RESPA, Associate-Licensee can give a portion of their commission to the Principals.

22. Failure to comply with any of the above is grounds for termination.