4.1 Profit Centers
Each Office and Division of the Company that creates income through its operation will function as a separate profit center. The Manager of each of these profit centers has the complete authority and responsibility to build an effective sales team, control costs, and perform any other administrative functions necessary to the successful operation of his or her profit center.

4.2 Cooperation
The facilities of each office are open to any member of this Company. Although each office or division of the Company is set up and functions as a team in itself, it is important for the benefit of everyone, that there be complete cooperation between all members of the Company Team, which includes the Virtual Network of Agents. This cooperative spirit, and courtesy, should also be extended to other Brokers when an inquiry is made of us. Always be guided by the professional image we wish to portray as a Company to the general public, as well as to our contemporaries. Apply the Golden Rule Concept.

4.2.1 Atmosphere and Conduct
It is to the best advantage of all that we strive to put our best foot forward in purveying and image to the public. This image includes our personal appearance and conduct and the appearance of our office. Suffice it to say that this appearance should be neat, business-like and friendly, and that our conduct should be on a professional plane. A suit and tie is recommended attire for men. Business suit or dress/skirt is recommended for women.

4.2.2 Office Upkeep
As professionals, it is your obligation to maintain a clean and appropriate workspace. Please clean up after yourself, leaving workspaces free of trash, papers, food, etc.

4.2.3 Smoking
Smoking is permitted outdoors only. Please refrain from smoking directly next to the entrance-ways. Please walk to the end of the building or across the parking lot to smoke.

4.3 Regular Operational Activities

4.3.1 Office Hours
Offices will open at 9:00 A.M. and will remain open until at least 8:00 P.M. on weekdays, and until 6:00 P.M. on Saturdays and Sundays.

4.3.2 Opportunity Time
Each month, The Manager of each office will prepare, a schedule for voluntary opportunity time for the convenience of the Associates, and the orderly operation of the office. The Sales Associate must know inventories of houses for sale in order to professionally show customers' homes. It is imperative that all new listings, both, M.L.S. and Better Homes, NJ/VRI Realtors exclusives, be inspected by people expecting opportunity time.

4.3.3 Weekly Sales Meetings
Weekly sales meetings will be held in each office prior to scheduled Broker Open House events. The Manager of each office will coordinate this weekly open house event pertaining to the houses listed by the Company along with listings offered by other Firms.

4.3.4 Open House
The Manager of each office will coordinate weekly Open House events pertaining to the houses listed by his or her office and/or the Company Open Houses. Over all, Company coordination will be maintained to help implement this program. It is necessary that the person responsible for advertising be notified in accordance with the Advertising Department's guidelines, as to the Sunday Open Houses to be advertised.

4.3.5 Development Sessions
Development sessions may be held at the discretion of the Managers.

4.3.6 Company-Wide Meetings
Company-Wide meetings are held at the discretion of the Broker/Owner/President. It is requested that all Sales Associates and Managers attend those meetings.

4.3.7 Regular Check-In
It is requested that each Associate, not expecting to be in the office on any given day, sign in and out as they come and go and log their destinations on the sign in sheet.

4.3.8 Recommended Telephone Procedures
The telephone should be answered, "Thank you for calling Better Homes, NJ, ___________ speaking." Once the party calling has identified to whom they wish to speak… say "just a moment please, I will connect you with his or her extension." Then immediately transfer the call to the appropriate extension.

If the person called is not in the office, ask if the caller if he or she would like to be transferred to the appropriate voice mail. If the caller would like to be transferred to voice mail, then immediately follow through. If they would like another number for the person they are calling, provide the caller with the information requested if appropriate.

Do not offer idle chatter while you are looking up a transfer number. Do not sigh loudly or make verbal noises. Also, be sure the up desk area is quiet. Everyone is to practice professional decorum while in the office and around the phone area.

In the case of an important message disclosed by the caller, try to locate the person being called to the best of your ability. An out-of- town buyer trying to locate a Sales Associate before and appointment, for example, would fall into this category.

During sales meetings messages should be taken on all calls so that parties calling may be called back later in the morning. Since it is difficult for Associates to take calls during sales meetings, the Office Administrator should leave any message of an inquiry, on the voice mail of the Associate that was scheduled for floor time at the time the call comes in. It is the Office Manger's responsibility to see that at least one Sales Associate is in the office at all times.

Prospect calls not directed to a specific Associate, shall be handled by the Associate on opportunity time.

4.3.9 Greeting Visitors to the Office
Visitors should be greeted cordially and made to feel welcome. Messages from office visitors should be recorded as with telephone messages.

4.3.10 Recommended Procedure for Leaving Floor During Opportunity Time
Leaving the floor during Opportunity Time or Floor Time should be avoided, if possible. However, if the Associate on Opportunity or Floor Time has to leave to service a call-in or walk-in prospect that must have immediate attention, he or she should:

• Assign opportunity time to another Associate present in the office
• Inform the other person on Floor Time that he or she may be alone on the floor for a while
• Notify the Office Administrator and/or Manager of the situation

4.4 Authorization of Expenditures

4.4.1 Long Distance Telephone Calls
It is requested that good judgment be used when making long distance phone calls. If the business can be handled with a facsimile or email, it is expected that you do so. Business calls made from home are at the Associate's expense and definitely should not be charged to his or her office.

4.4.2 Overnight Mail
Overnight mail may be charged to the Company only after the Associate sending overnight mail obtains the approval of his or her Manager prior to sending the overnight mail.

4.4.3 Services and Supplies
No service or supplies may be ordered chargeable to the Company without written authorization from the the Manager.

4.4.4 Office Maintenance
When office maintenance is required, Manager of Office Administrator should contact the Broker to request make the necessary arrangements to have specific work done.

4.5 Recommended Duties of Listing and Selling Sales Executives

4.5.1 Accepting Listings
All listings should be taken on an approved Better Homes, NJ/VRI Realtors "Exclusive Right to Sell Agreement for Sale of Real Estate", which may be the same form as supplied by the Monmouth County Board of Realtors.

4.5.2 Listing File
A complete file on a new listing should be turned in by the listing Sales Associate to his or her Office Administrator within 24 hours of the listing being signed by the Seller.

4.5.3 Posting Signs
Every effort should be made by the Sales Associate to post a Company sign and place a lock box on the property. Signs and lock boxes may be checked out by the Office Administrator and must be returned upon sale and settlement of the property or upon withdrawal or expiration of the listing. Sales Associates are required to check and comply with local ordinances. If a permit is required, complete a petty cash voucher and ask the Office Administrator or Manager for the appropriate amount of cash. If the amount is over $10, write a personal check and complete a Company Reimbursement Form. All signs must be returned to the appropriate office. The Company will not be responsible for fines assessed as a result of noncompliance with local ordinances and will not reimburse Associates for fees necessary to defined same.

4.5.4 Key Files
Keys for listed property not having a lock box should be filed in a central key box as directed by the Manager. Keys may be removed from the file only if the Associate removing the key leaves his or her name on a log maintained by Office Administrator, noting date and time.

4.5.5 Statue of All Listings
Withdrawals, Deposits, Solds, B.O.M.'s, etc., should immediately be communicated through Office Administrator and all applicable forms should be sent to the Accounting Department. Sales Associate should be alerted to the specified time period required by the various M.L.S. Systems as it regards the reporting of transactions, keeping in mind fines, at the Sales Associates expense will be levied if these regulations are not adhered to.

4.5.6 Associates' Functions Limited
Sales Associates may only make representations or offerings of any inducements to Buyers or Sellers which are consistent with the Rules and Regulations of the New Jersey Real Estate Commission.

4.5.7 Servicing Listings
The listing Associate should service his or her listings to the following minimum degree:

• make personal contact with the owner by visit, telephone call or letter once per week
• submit a listing statue report Manager every thirty (30) days or immediately notify Manager of any potential problems at any time during the duration of the contract
• review the listing with the Manager ten (10) days before expiration
• send the seller a clipping of all ads on their property as copies of all ads should be kept in listing file
• communicate in writing with a seller what a Sales Associate's responsibility is concerning winterizing, etc
when listing a vacant home,
• inform seller of our relocation services and ask if you may refer them to their destination area

4.5.8 Listing Fees
The Company will submit a check to the appropriate Boards for each listing taken by Associates. However, when, and if, the listing is sold by a Better Homes, NJ/VRI Realtors Associate, 50% of the listing fee will be deducted from the selling Associate's commission. In the event a listing is sold by another Broker, it is the Associate's responsibility to ascertain that the correct listing fee is included in the contract and that same is invoiced and collected at closing. In the event listing fees are not collected due to Associate's error, the amount of the listing fee will be deducted from the Associate's commission. If properties are listed on two M.L.S. Boards, total cumulative fees must be indicated on each listing. If a home is listed and then re-listed upon withdrawal or expiration, cumulative fees apply as well. Listings on more than one Board are to be discouraged, unless absolutely necessary.

4.5.9 Open House Showings and Commission Splits

4.5.9.1 Open House
The Sales Associate must make a 100% effort to be available each Sunday to accompany customers to Better Homes, NJ/VRI Realtors' Open House events. An unaccompanied customer will most likely visit our competitor's Open House events as well. If our customer purchases a competitor's home, while unaccompanied, the Sales Associate is left without any commission.

In the event there is a conflict an emergency, and an Associate is unable to accompany their customer to a Company Open House and a purchase is procured without a specific outlined commission or referral agreement, the following policy will prevail:

• Sales Associate "B" is conducting an Open House. If Sales Associate "B" was notified by Sales Associate "A" that Sales Associate "A's" customer was going to visit the Open House and Sale Associate "B" effects a contract of sale that day as a result of the showing, the commission split will be 50% to both Sales Associate "A" and "B".
• If customer is not sold that day by Sales Associate "B" customer reverts to Sales Associate "A". If Sales Associate "A" subsequently sells that customer that house, Sales Associate "B" receives 25% of the commission from Sales Associate "A's" commission.

4.5.9.2 Open House Walk-In
Customer walks into Open House and identifies himself as being the customer of Sales Associate "A". Customer is shown the property by Sales Associate "B" and customer indicates that he or she would like to make an offer on the house. Sales Associate "B" should then attempt to reach Sales Associate "A" or designated covering Sales Associate or Manager. If Sales Associate "A" or alternate people are not available or indisposed, then Sales Associate "B" writes contract of sale. If there is an acceptance, Sales Associate "B" receives 75% and Sales Associate "A" receives 25%. If an acceptable contract is not received on that Sunday, both Sales Associate "A" and Sales Associate "B" should work as a team, then Sales Associate "A" will receive 50% and Sales Associate "B" will receive 50%. If there is no further interest in that particular house the customer reverts to Sales Associate "A". If customer does not announce that he is a customer of Sales Associate "A" and a sale is affected that day, then Sales Associate "B" gets 100% of the commission.

4.5.10 Contract Presentation
The listing Associate should attend any and all presentations of contracts on his or her listing. He or she should leave the burden of presentation to the selling Firm or Associate, advising the seller as to the soundness of the contract.

4.5.11 Writing Agreements of Sale
The selling Associate should take all Offers to Purchase in writing, using the Standard Contract of Sale. There must be a minimum of six contracts with original signatures.

It is permissible to accept a deposit by check or cash. Postdated checks are not acceptable. In all instances, the form of the deposit shall be shown on the face of the agreement of sale. Deposits shall be a minimum of $1,000.00 (or lesser amount to be approved by the Manager). Pursuant to Real Estate Commission rules, deposit checks are to be held in trust and placed in escrow within five (5) business days of receipt.

The date of acceptance of the agreement of sale by the seller should always be inserted by the seller's signature, preferable in the handwriting of the seller. All owners must sign the seller line of any Agreement of Sale. Faxed acceptance of Agreement of Sale should be addressed to the Company, authorizing it to accept the Agreement of Sale on behalf of the seller. The copy should cite the basic conditions of the Agreement of Sale and any unusual conditions contained therein, to include the gross sale price to the seller. This must be confirmed by actual signatures on the Agreement of Sale. A copy of any Agreement of Sale signed by any person should be given to that individual at the time he or she signs. A final copy should be provided when all signatures have been obtained on the Agreement of Sale.

4.5.12 Presentation of Offers
Presentation of an Offer to Purchase may be made by the selling Associate or, when the selling Associate is unavailable, by their designated covering Sales Associate or Manager. Before an Agreement of Sale may be presented to the seller, the listing Associate must be notified. Appointments to submit an Agreement of Sale to a seller should be made through the listing Associate or their Manager.

4.5.13 Mortgage Granted
When a mortgage is granted, it is recommended that Sales Executives mail or hand carry back Title information to purchaser's Attorney in order to expedite the Title Search process.

4.5.14 Attorney Review Clause
The Attorney Review Clause must be in all Contracts of Sale.

4.5.15 Counter Offer
Counter offers may be obtained by making changes to the original Agreement of Sale Contracts. Any changes to be made are to be made by writing one line through the original data. Do not use white out and do not completely cover the original data. It is recommended that all initials used in consummating a counter offer should be dated. If necessary, Associates may also prepare a new Agreement of Sale for the signature of the seller

4.5.16 B.O.M.'s (Back on Market)
When a sale falls through, a B.O.M. form must be sent to Accounting and release Agreement of Sale, if required, should be signed by all parties before any deposit is returned. This is for the protection of all parties concerned. Notify the office administrator immediately. No deposit may be released back to a purchaser without written acknowledgment from both buyer and sellers attorney that it is okay to do so.

4.5.17 Contract Files
Immediately upon acceptance of an Agreement of Sale, the selling Associate shall turn in to his or her Office Administrator, a contract file (made up from the listing folder) which shall consist of:

• the original copy of the Agreement of Sale
• a completed M.L.S. reporting form
• VRI deposit form
• Copies of Deed and Survey, if available
• Notes including information as to who has copies of the final Agreement of Sale, and any information that may be of use to the Settlement Department
• Check to be Deposited Form or copy of the Deposit Form
• Closing and Commission Statement to Accounting Department
• All pertinent correspondence and documents
• Copy of the property Bible Worksheet

4.5.18 Record Retention
In compliance with the requirements of the Real Estate Commission, contract files shall be maintained for not less than six (6) years. Unaccepted offers and expired Listing Agreements during the term of which no contract of sale was executed or no tenancy was entered into, shall be maintained for at least six months from the date of the offer or expiration date of Listing Agreement.

4.6 AGENTS AUTHORITY, GENERAL

4.6.1 Disputes and Commission Adjustments
By its nature, ours is a competitive endeavor and therefore those who are successful in this endeavor are the same nature. Because of this, from time to time, situations will arise involving some conflict of interests between Sales Associates. What follows, are the policies to be followed in given situations that have arisen before and may arise again. When differences between Sales Associates come up that are not covered in this section, the Sales Associates involved should make every effort to solve the problem themselves to their mutual satisfaction. If this cannot be done, the matter may be referred to the Manager. If the dispute still cannot be settled, it may be referred to the arbitration committee.

Since it is paramount that an efficient public service be maintained, the following rules will govern certain situations that do arise. It is to be remembered that all of the following cases assume that not only can the Sales Associate asked for not be reached, but it appears that a sale or listing might be lost if there is a any delay in serving the customer. In all cases Sales Associates are expected to make every effort to strengthen the position of the absent Associate with the customer.

In the absence of any mutually agreed to arrangement between two or more Sales Associates in the same offices as to how their customers are to be handled in their absence, the following policy will be in effect

4.6.1.1 Typical Cases and Solutions (Shared Commissions)
Customer Smith calls or comes into the office and asks for Sales Associate "A". Sales Associate "A" is out and cannot be reached. Sales Associate "B" shows him or her a property he or she has already been shown by Sales Associate "A", and Sales Associate "B" writes the contract and gets the sale. Sales Associate "B" will receive 25% of the commission, Sales Associate "A" will receive 75% of the commission.

Customer Smith calls or comes into the office and asks for Sales Associate "A". Sales Associate "A" is out and cannot be reached. Sales Associate "B" sells customer a house that wasn't shown by Sales Associate "A". Sales Associate "A" never met the client. Sales Associate "B" will receive 75% of the commission and Sales Associate "A" will receive 35% of the commission.

Customer Smith calls or comes into the office and asks for Sales Associate "A". Sales Associate "A" is out and cannot be reached. Sales Associate "B" sells the customer a house that wasn't shown by Sales Associate "A". However, Sales Associate "A" had met the client face to face. Sales Associate "B" will receive 75% of the commission and Sales Associate "B" will receive 25% of the commission.

Customer Smith calls or walks into the office and asks for Sales Associate "A" who cannot be reached. Sales Associate "B" shows customer a property but doesn't sell customer a property. If Sales Associate "A" had never met customer, customer automatically becomes customer of Sales Associate "B". If Sales Associate "B" sells the customer a property, Sales Associate "A" receives 25% of Sales Associate "B"'s selling commission as a referral fee.

Customer calls or walks into the office and asks for Sales Associate "A", who cannot be reached. Sales Associate "B" shows customer one or more properties, but doesn't get a contract that day. If Sales Associate "A" had previously met customer, customer will revert back to Sales Associate "A". If Sales Associate "A" sells customer a house later, Sales Associate "B" will receive 25% of Sales Associate "A's" selling commission for keeping the customer with Better Homes, NJ/VRI Realtors.

4.6.2 Shared Commissions
When efficient servicing of a prospect requires service by two Associates it is recommended that the sales commission is shared as follows:

An Associate may refer a prospect to another Associate for a percentage of the sales commission as negotiated between the Associates involved. Full particulars of the negotiation shall be reported to the Manager at the time the prospect is referred, and such arrangement shall be noted on the settlement folder.

4.6.3 Authority to Reduce Commissions
It is the policy of the Company that no reductions shall be made in the commissions payable to the Company and that no cost of the sale will be deducted from the Company's commission. No exception to this policy may be made except with prior approval of the Senior Management.