COLDWELL BANKER GUNDAKER

GUIDELINES

Revised November 2012

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SECTION I: COMPANY PHILOSOPHY

Foreword……………………………...…………………………………………...….. 5 Introduction….…….…………………………………………………………...……... 6 Ethics……………………………………………………………………………..…… 6 Non-Discrimination………...…………………………………..………….…..……... 7 Fair Housing…………………………………………….………………………..…… 8 Sexual and Other Harassments……………………………………..…….…..………. 9 Antitrust……………………………………..………..………………………...…….. 10

SECTION II: GENERAL GUIDELINES

A. Office Hours/Holidays…….…………………………………………………….. 11 B. Public Image…….………………………………………….……..…………….. 11 1. Dress………….……………………………………….…..…………………. 11 2. Smoking………..………………………………………...…………………... 11 3. Food and Drink…..……………………………………………………..……. 11 C. Conference Rooms.………………………………….……………………...…… 11 D. Office Records…….…………………………………….……………..………... 11 E. Building Security….………………………………………..…………..……….. 11 F. Parking…………………………………………….………..…………………… 12 G. Branch Office Sales Meeting…………….……….………………………..……. 12 H. Tour………………………………….………………………..………….……… 12 I. Tour Guidelines & Etiquette…………………………………………………….. 12 J. Company Sales Rally………………………………….………………..….……. 13 K. Phone Greeting…………………………………………………………………... 13 L. Receptionist………………………………………………..……………………. 13 M. Long Distance Telephone Calls…………….…………………..……………….. 13 N. Mailing Cost/Postage….……………………………………….……...………… 13 O. Cooperation Between Offices..……………….………...………………………. 13 P. Opportunity Time….……….………………………….….………..…………… 14 Q. Supplies/Expenditures…………………………………………………………… 14 R. Insurance on Personal Effects………………………………………...………... 15 S. Alcohol/Controlled Substances………………..………………………………… 15 T. Closing the Office……………………………………………………………….. 15 U. Communication System Acceptable Use Policy………………………………… 15 1. Scope…………………………………………………………………………. 15 2. Conditions and Rules……………………………………………………….…

Continued…………………………………………………………………….. 16 17

3. Electronic Mail……..………………………………………………………… 18 4. Internet……………………………………………………………………….. 18-

19 5. Equipment…………………………………………………………………….. 19

6. Penalties………………………………………………………………………. 20

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SECTION III: GUIDELINES OF SALES ASSOCIATES

A. Communication with Office………………………………………………….….. 21 B. Independent Contractor Relationship……………………………….…………… 21 C. Independent Contractor Agreement……….…………………….………………. 21 D. Legal Assistance Program (LAP) 21 E. Licensing/Board of Realtors/MLS Fees…………………...……….……………. 21 F. Sales Associate Expenses… …...………………………………………………... 22 G. Auto Insurance……………………………….………………………………….. 22 H. Sales Associate Continuing Education…………………………………………... 22 I. Customer Complaints……………………………………………………………. 22 J. Disputes Between Associates……………………………………………………. 22 -23 K. Unemployment Compensation/Workers Compensation………………………… 23 L. Property Management & Leasing Department..………………………………… 23 Frequently Asked Questions About The Do Not Contact Rules………………… 24 -28

SECTION IV: ASSOCIATE COMPENSATION

A. Commissions……………………………………………………………………... 29 B. Division of Commission Between Sales Associate & CBG…………………...… 29 C. Commission Between Offices…………………………………………………… 30 D. Income…….……………………………………………………………….…. 30 E. Selling Agent Bonus………………………………………………………….. 30 F. Sale of Associate’s Listing of Primary Residence……………………………….. 30 G. Sales Associate’s Purchase of Primary Residence……..……………..……….… 31 H. Sales Associate’s Listing of Investment Property……………………………..… 31 I. Litigation…………………………………………………………………………. 31 J. Commission Disputes……………………………………………………………. 31

SECTION V: LISTINGS

A. The Listing Presentation Preview……………………………………………….. 32 B. Competitive Market Analysis (CMA)…………………………………………… 32 C. The Listing Agreement…………………………………………………………... 32 1. The Listing Agreement Description………………………………………….. 32 2. Home Warranty Program…………………………………………………….. 32 D. Listing Package Contents………………………………………………………... 32 E. Advertising………………………………………………………………………. 33

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Regulation Z……………………………………………………………………... 34 F. Legal Advice…………………………………………………………………….. 34 G. Earnest Money…………………………………………………………………… 35 H. Ordering Inspections for Clients/Customers…………………………………….. 35

SECTION VI: AGENCY AND TRANSACTION BROKERAGE

A. Policy Statement on Agency and Transaction Brokerage………………………... 36 B. Company Confidentially Policy…………………………………………………. 37 C. Recommendations Requiring Confidentiality……………………………………. 38 1. Oral Discussion of Confidential Information…. ……………………………… 38 2. Confidential Information Delivered Through Telephone or Facsimile……….. 38 3. Confidential Information Contained In Offers, Counter-Offers and Contracts

Delivered to the Office………………………………………………………… 39

4. Listings and Pending Files………………………………………………….…. 39 5. Postings of Sales Prices……………………………………………………….. 39 D. Cooperation/Compensation of Sub-Agents, Buyer’s Agents and Transaction

Brokers……………….………………………………………………………….. 39

E. Broker Disclosure Form………………………………………………………….. 39

SECTION VII: NEW HOMES

A. New Homes Division……………………………………………………………. 40 B. Buyer Registration……………………………………………………………….. 40

SECTION VIII: AFFILIATE & SUPPORT COMPANIES

A. Coldwell Banker Gundaker School of Real Estate……...……………………… 41 B. Marketing Department………………………………………………………… 41 C. Relocation Services……………………………………………………………… 41 1. Role………………………………………………………………………… 41 2. “Top Block” Service…………………………………………………………. 41 3. Outgoing Referrals…………………………………………………………… 41-

42 4. Incoming Referrals…………………………………………………………… 42 5. How to contact us…………………………………………………………….. 42 D. NRT Missouri Referrals Network, Inc…………………………………………... 42 1. Organization…………………………………………………………………... 42 2. Referral Commissions………………………………………………………... 43

SECTION IX: AWARDS & RECOGNITION/ANNUAL AWARD PROGRAM

For details of the awards & recognition please, refer to the annually published Commissioned Incentive Plan Brochure.

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Disclaimer……………………………………………………………………….. 43

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SECTION I: COMPANY PHILOSOPHY

FOREWORD

The purpose of this manual is to familiarize you with Coldwell Banker Gundaker guidelines and programs, and to protect against future misunderstandings. It is not intended to serve as a Training Manual. Sales associate training is provided by the Training & Education Department of Coldwell Banker Gundaker. It is recommended that copies of this manual be retained in the office for reference. Each sales associate should refer to the manual when questions arise and periodically review its contents. Branch sales managers are to periodically review the contents of the manual at office meetings by selecting topics to present to the sales associates. Information contained herein is strictly confidential. Please understand that no effort is made to incorporate a procedural statement for every conceivable set of circumstances. In all circumstances sales associates are to abide by the spirit of policy rather than the letter of the policy. Management will decide and be guided in such decisions by experience, the Realtors Code of Ethics, the Multiple Listing Services Rules Regulations of the Missouri Real Estate Commission (MREC), statue and Common Law. Management, from time to time will make additions and revisions that will be announced and published to become effective with reasonable notice.

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INTRODUCTION

Welcome to Coldwell Banker Gundaker. Real estate is an exciting, demanding, occasionally frustrating and very rewarding career. You will receive great personal satisfaction in helping families achieve the American dream. You have the distinct privilege of being associated with one of the most successful real estate companies in the country. Coldwell Banker Gundaker has the finest combination of services and selling tools available. Coldwell Banker Gundaker is a member of the NRT family of real estate companies. NRT is owned and operated by Realogy. Coldwell Banker Gundaker offers its associates:

• A Progressive, Professional Management Team

• The most Comprehensive Associate Training Program in the area

• Active, involved Principal Brokers

• Local St. Louis Leadership

• Complete Market Coverage with 19 local offices

• Attractive Commission Incentive Plan

• Our Relocation Service Center

• New Homes Department

• Coldwell Banker Home Protection Plan

Affiliate Relationships with:

• Cartus (formerly Cendant Mobility)

• Coldwell Banker Home Loans

• US Title Guaranty Company, Inc.

• American Home Shield

Along with opportunity goes responsibility. Your actions reflect upon all associates in our company, and our profession. You are encouraged to take advantage of all the Training & Education programs offered by the company. You have the responsibility to yourself, your fellow associates and to the general public, to continue to develop your professional education and skills. Our primary purpose is to ensure continuing client and customer satisfaction and provide the consumer, a rewarding real estate experience.

ETHICS

The company is a member of the National Association of Realtors, the Missouri Association of Realtors, and the various local Boards of Realtors. The local Boards require that each sales associate, after joining Coldwell Banker Gundaker shall make application for membership to the appropriate Board of Realtors. Each sales associate in this company should read and abide by the Rules & Regulations of the Missouri

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Real Estate Commission and the Code of Ethics of the National Association of Realtors and the codes adopted by our local Boards and Multiple Listing Services.

NON-DISCRIMINATION

The company always adheres to all Federal, State and Local laws and regulations regarding Fair Housing and Non-Discrimination. Violations of these laws and regulations may be grounds for separation of association, as well as possible prosecution from appropriate governmental authorities.

THIS MANUAL IS NOT AN EMPLOYMENT AGREEMENT

Neither this manual nor any other communications by the company is intended to, in any way, create a contract of employment, either expressed or implied, between an agent and the company. The Purpose of this manual is to provide general informational guidelines to the agent. Nothing in this manual should be construed as mandatory rules prescribing the extent of control that the company may exercise over the details of your work, skills required, or the hours during which you must work in your profession as a Real Estate agent. It is not intended that the legal relationship of “master and servant” be created by this manual or by the Independent Contractor Agreement. Agents have discretion as to handling leads and prospects and as to the means of securing listings and consummating negotiations. Agents may use the facilities of Coldwell Banker Gundaker strictly as volunteers. Guidelines herein are described only to the extent that such are required in any business for its orderly conduct, and to obey federal and state laws, the Code of Ethics of the National Association of Realtors, and to provide information to our agents.

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FAIR HOUSING

Fair housing is a serious matter. The management of Coldwell Banker Gundaker and the managers of each office have the legal, ethical and moral responsibility to do everything in their power to prevent any of his/her sales associates or employees from committing any act or making any statement which could be perceived as discriminatory, based on race, color, religion, sex, national origin, familial status or handicap. * The information contained in this manual sets forth those policies and procedures. They have been developed to help our agents comply with both the letter and the spirit of the fair housing laws. It is our intent to comply in every way with the letter, and spirit of fair housing laws. The courts have ruled that the broker/owner may be responsible for the acts of their sales associates and employees in fair housing matters. Therefore, this company/office may not be in a position to defend sales associates or employees charged in fair housing matters if these policies and procedures have not been followed. In fact, acts of discrimination will be grounds for termination or other disciplinary action. *Note: These are the seven protected class groups covered under the Federal Fair

Housing Law, including the “Fair Housing Amendment Act of 1988.” Individual state and local laws may add more protected classes.

For example, The City of St. Louis identifies “sexual preference” as an additional protected class.

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SEXUAL AND OTHER HARASSMENTS

This company respects all sales associates and prides itself on maintaining a pleasant working place.

It is, therefore, our policy to provide a work environment free from any form of

harassment including, but not limited to, harassment based upon race, color,

religion, national origin, disability, sex, age, or any other protected status.

Therefore, this organization will not tolerate sexual harassment (or any other form of harassment) of its sales associates by anyone: co-workers, office managers, and business associates included. Furthermore, a sales associate’s response to, submission of, or rejection of sexual harassment (or any other form of harassment) will play no part in any licensing decision. Sexual harassment is defined as unwelcome or unwanted sexual advances, demands for sexual favors and verbal kidding or abuse of sexual nature. We are not attempting to invade your privacy, but to protect it. Therefore, normal, courteous, mutually respectful, non-coercive interactions between men and women that are acceptable to both parties are not sexual harassment. A sales associate who believes that he or she is the target of any form of harassment should promptly report all such episodes to his/her office manager so that an appropriate investigation might be conducted and that appropriate corrective action might be taken. If you are not satisfied with the results, you are encouraged to take the matter to the company president. A sales associate who violates the harassment policy is subject to their license being returned to the MREC.

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ANTITRUST

The commission rates of our firm are based upon the cost of the services we provide, the value of these services to our clients and competitive market conditions. Our commission rates are not determined by agreement with, or recommendation or suggestion from, any person not a party to a listing agreement with our firm. Sales associates affiliated with this firm shall not participate in any discussion with any person affiliated with or employed by any other real estate firm concerning the commission rates charged by this firm, or any other real estate firm in our community. When soliciting a listing, or negotiating a listing agreement, no sales associate affiliated with this firm shall make any reference to a “prevailing” commission level in the community, the “going rate,” or any other words or phrases that suggest that commission rates are uniform or “standard” within our marketing area. The amount of Co-Brokerage compensation, or “commission split,” offered by this firm to cooperating brokers is determined by the level of service we can expect a cooperating office to perform, and the amount of compensation, or commission splits, are not intended, and may not be used, to induce or compel any other real estate firm in our marketing area to raise or lower the commission they charge to their client. Whenever a sales associate is unsure about the proper way to respond to the concerns of an actual or potential client or customer, or whenever a sales associate has been present during an unauthorized discussion of fees or commissions, he should contact his principal broker or sales manager immediately. If necessary, the broker manager will consult our firm’s attorney.

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SECTION II: GENERAL GUIDELINES

A. OFFICE HOURS/HOLIDAYS

All Coldwell Banker Gundaker offices are open normally from 8:30 am to 8:30 pm, Monday through Friday, and from 8:30 am to 7:00 pm, Saturdays and Sundays. All Coldwell Banker Gundaker offices will be closed Thanksgiving and Christmas Day. On other Holidays, offices are encouraged to maintain a voluntary floor schedule. B. PUBLIC IMAGE

1. DRESS: Every sales associate has the responsibility to be appropriately and professionally attired when conducting his/her business, in the office, or outside of the office. Remember that you represent your office, Coldwell Banker Gundaker, and your local Board of Realtors and State and National Association of Realtors.

2. SMOKING: Sales associates are required to comply with smoking

restrictions in any area so designated within your office. Some of our customers may find smoke objectionable, hence it is recommended that you not smoke in their presence.

3. FOOD AND DRINK: All Coldwell Banker Gundaker Sales Offices have

a kitchen facility and, in the interest of maintaining a professional, work-like environment, eating should be restricted to that area. Sales associates are encouraged to make every effort to keep the kitchen area clean.

C. CONFERENCE ROOMS

The conference rooms in all offices may be used for meeting with customers, for making confidential calls, or other activities appropriate for sales offices. Sales associates are encouraged to keep the room neat, remove coffee cups and straighten chairs when you leave.

D. OFFICE RECORDS All papers, contracts, and pertinent information to all transactions will be kept in a file in the office, as required by Missouri Real Estate Commission (MREC). These materials are not to be removed from the office, since they are subject to audit by the MREC. A complete file must be maintained in the office. E. BUILDING SECURITY

After office hours, the office must be locked and secured. Keys or combination to the branch office can only be obtained through the branch manager, or secretary who is responsible for maintaining a record of those keys or combination.

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F. PARKING Designated spaces for customer parking are provided as a courtesy for the customer, and not available for use by any sales associates. Sales associates and employees are encouraged not to park in any space marked “Customers” or curbside adjacent to a “No Parking” and/or “Fire Lane” sign. G. BRANCH OFFICE SALES MEETING

All sales associates are encouraged to attend their weekly office sales meeting. These sales meetings are typically conducted each Tuesday morning, with some exceptions. It is important to note that the branch sales meeting is our format for conveying important information and each sales associate is encouraged not only to attend, but in consideration of others, to be punctual. H. TOUR

Each office tours new listings one day each week, usually immediately following the office sales meeting. Property tour is beneficial to every sales associate since it familiarizes them with the inventory of properties, the condition and value, and the market area. Sales associates may join any other office tour with the permission of that branch manager. I. TOUR GUIDELINES & ETIQUETTE

• Each office should form a caravan of cars with assigned drivers. It is suggested that magnetic car signs and/or tour flags be used for all tour cars. The tour is to stay together. The branch manager will direct the tour and attend the complete tour.

• Never smoke in a property being toured.

• If the owner is home, associates should not use the phone or restroom facilities without the owner’s permission. Associates should always use driveways, sidewalks and remove shoes or use booties in inclement weather.

• No critical discussion of the property should be conducted while on the premises. If constructive criticism is in order, associates should hold this discussion with the listing associate after leaving the property. Helpful marketing suggestions may be shared during the home tour. Property “Evaluation Sheets” are available for associate feedback should the listing associate choose to use them.

• Associates should inspect the entire property. All associates should go to the basement and to the upper floors of the property.

• Properties should be air conditioned or heated to allow for the inspection. It is unrealistic to tour properties that are not heated or air conditioned in severe weather.

• Every Coldwell Banker Gundaker associate who tours a property should leave a business card to show the level of Coldwell Banker Gundaker associate involvement in the tour.

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J. COMPANY SALES RALLY

• At the bi-monthly Rally we recognize the top sales associates from each office for the previous month, and offer live presentations by national real estate trainers, public speakers, or professional consultants. These Rallies also provide an opportunity to maintain company-wide team spirit, and all associates are encouraged to attend.

• The Outstanding Service Award - This is a special award presented to associates based on positive feedback received from that associate’s customers or clients. The award consists of the Outstanding Service Star Award, plus a special certificate that may be framed, or used in the associate’s Listing Presentation Manual.

K. PHONE GREETING

An associate should answer all incoming phone calls promptly, in a pleasant manner, with enthusiasm and with a smile in his/her voice. The sales associate on duty will attempt to courteously provide any information requested and answer the telephone with the appropriate office greeting which follows: “Thank you for choosing Coldwell Banker Gundaker Real Estate and Mortgage Services. How may I help you?”

L. RECEPTIONIST

Some sales offices have a receptionist to answer all incoming calls. The purpose of the receptionist is to expedite the incoming calls, answering and transferring each call in a courteous and professional manner. The receptionist guidelines are provided by the individual branch manager.

M. LONG DISTANCE TELEPHONE CALLS

All long distance telephone calls made from the office must be business-related. N. MAILING COST/POSTAGE

Business postage, specifically related to a transaction, (i.e. contracts, addendums, inspection reports, etc.) is an office expense. Postage related to prospecting activities or personal mail is an individual sales associate’s expense, unless otherwise specified by your branch manager. Any express mail is an associate’s responsibility and expense.

O. COOPERATION BETWEEN OFFICES

Coldwell Banker Gundaker has an “Open–Door” policy among all offices and sales associates are welcome to use other offices during business hours. Immediately upon arrival, visiting agents are encouraged to identify themselves to the duty agent and present a business card, and should respect the rules and procedures of that office since some procedures may vary. If you need to be in the office after normal business hours, contact the branch office manager.

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P. OPPORTUNITY TIME Make every effort to deliver messages to fellow sales associates in a timely fashion, even outside normal business hours. With the availability of an office voice mail

system, or individual sales associate’s voice mail, voice pager, or electronic message answering device, the receptionist or duty sales associate should make every effort to forward calls to these devices. Each caller should be offered the opportunity to leave a message on the person’s “voice message center.” If they choose not to, the person answering the phone should offer to take a name and number and be sure the sales associate gets the message by then calling the sales associate’s answering device and repeating the name and number. If a sales associate does not have any such device, a handwritten phone message will be taken and handled in accordance with each office’s procedures. If a caller does not wish to leave a message and says, “I’ll call back,” the person answering the call should ask for the caller’s name and pass it along to the sales associate as a courtesy. Sometimes just knowing that someone has called can be very important to an individual’s business. Please refer to your office manager for specific office politics. Any customer complaint calls should be given immediately to a manager. If a Sales Contract or Facsimile is delivered:

Enclose faxes in confidential envelope

Note the time and date it is received on the face of the envelope

Ask if the sales associate is expecting the sales contract

Ask for a business card to attach to the envelope

Using the same procedures outlined above, make every effort to contact the sales associate. Also note on the face of the envelope, or cover page, the time of contact or time you called their voice mail or answering device, (contractual times start when either the buyer/seller or the “Agency” has actual knowledge of written notice. Delivery to the office generally constitutes that notice). If you cannot contact the agent and time is of the essence, contact the branch manager. Sales associates are encouraged to respond to calls and correspondence just as soon as possible. If there is an unavoidable delay, this matter should be reviewed with management.

Q. SUPPLIES/EXPENDITURES Sales Associates are not authorized to make purchases and DO NOT HAVE THE

AUTHORITY to bind the company by any promise or representation.

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R. INSURANCE ON PERSONAL EFFECTS

The personal effects of a sales associate in any Coldwell Banker Gundaker Realtors office are not covered through our insurance, and the company cannot be responsible. sales associates are asked to exercise good judgment regarding the nature and security of personal effects brought into the office. S. ALCOHOL/CONTROLLED SUBSTANCES

Coldwell Banker Gundaker does not condone in any way the use of alcoholic beverages during business hours, or while a sales associate is acting in a professional capacity. Drinking is not allowed in any branch office. Exceptions to this policy are minimal and are with express approval of the branch manager. Controlled substances are forbidden.

T. CLOSING THE OFFICE

When securing the office at the end of the day, the last associate to leave the office should be sure to check windows, doors, lights, coffee machine and refer to office policy.

U. COMMUNICATION SYSTEM ACCEPTABLE USE POLICY This policy is issued by Coldwell Banker Gundaker (hereafter “company”). As part of the office facilities and support systems provided to managers, independent contractors, employees, real estate brokers and sales people (hereafter “users”), the company provides and supports various types of telephone, fax, and computer systems in its various office locations. The company frequently adopts technology systems that help maintain its status as a leader in its field. These systems are provided to enhance efficiency and to enable the users to have access to information and other materials necessary to perform their work. The systems are provided to be used for work purposes only and not for personal use. The purpose of this policy is to set forth the general rules for use of the various types of communications systems available and to make everyone aware of what constitutes improper or illegal use of these particular devices. Failure to adhere to this policy may result in disciplinary action by the company and/or referral for criminal prosecution.

1. SCOPE: “Communication System” includes, but is not limited, to computers, computer accounts, microcomputers, printers, networks, software, electronic mail (E-mail), Internet access, web home pages, video systems, telephones, telephone long distance service, fax machines, and voice mail accounts.

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2. CONDITIONS AND RULES:

a.) Access is provided for the Company’s Business Purposes

The communication System is to be used solely for JOB-RELATED PURPOSES. Do not use the company-owned or any other system accessible by the company communication resource whether local, national, or international for any activity other than company-related business. Prohibited activity includes, but is not limited to, non-job related activities such as personal or private use; personal business matters; engaging in online discussions in news groups, chat lines, and bulletin board services; attempting to access other computer systems without authorization; posting commercial messages; and transmitting viruses or other invasive software.

b.) Compliance with State and Federal Laws

Transmission of material in violation of any United States or state regulation is prohibited.

This includes, but is not limited to, copyrighted material, threatening or obscene material, or protected trade secret material.

c.) Permission

Your use of the Communication System must be authorized by the company.

d.) Workplace Monitoring

All business equipment, electronic, and telephone Communication Systems, and all communications and stored information transmitted, received, or contained in the company’s information systems are the company’s properties and are to be used solely for job related purposes. To ensure proper use of communications systems and business equipment, the company may monitor the use of these systems and equipment at any time. By maintaining this policy, the company does not assume any responsibility to regularly monitor the contents of its Communication System.

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e.) Security

You must not engage in any activity that is intended to bypass computer security controls.

You must use the access controls and other security measures that the company has provided for you and you are to limit access only to your accounts. That means you must not attempt to crack passwords, to discover unprotected files, or to decode encrypted files. This also includes creating, modifying, or executing programs that are designed to penetrate computer systems. You also must not access the accounts of others with the intent to read, browse, modify, copy, or delete files and directories.

f.) Computer Systems and Software

Company computer systems include, but are not limited to, BDE, UNIX accounts, “GISMO,” desktop computers, portable computers, and other login accounts.

Loading any software on the company computer system without approval from the system administrator is prohibited.

That includes commercial, shareware, and freeware software.

Using the company computers to make illegal copies of licensed or copyrighted software is expressly prohibited.

You do not have the right to own or use unauthorized copies of software, or make unauthorized copies of software for yourself or anyone else.

You are prohibited from using software designed to destroy data, provide unauthorized access to the computer systems, or disrupt computing processed in any other way.

Using viruses, Trojan horses, and other invasive software is expressly forbidden. The company has installed antivirus software on all of its computer systems, and users are required to use it. You are prohibited from tampering with this software or turning it off. All disks that are inserted into the company’s computers must first be scanned for viruses or signs of other forms of malicious software.

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3. ELECTRONIC MAIL:

a.) The electronic mail system is to be used only for company related business.

You are prohibited from transmitting slanderous, fraudulent, harassing, or obscene messages and files. You must not send any electronic mail or other form of electronic communication by hiding another’s identity or attempt to conceal the origin of the message in any other way.

b.) Sending and receiving commercial E-mail is prohibited.

You are prohibited from signing up for non-business mailing list (LISTSERV’S) and generating or sending unsolicited commercial (or “junk”) E-mail.

c.) Creating or forwarding “chain” E-mail letters is prohibited.

You must not create or forward “chain” E-mail letters. An example of a chain E-mail letter is one that asks recipients to “forward it to EVERYONE you know.” If received, chain E-mail messages should be deleted.

4. INTERNET:

a.) Obscene or Offensive Material

Creating, storing, viewing, transmitting, or purposely accessing pornographic, illegal, or otherwise offensive material with the company’s communication system is strictly forbidden.

b.) Controversial Material and Accuracy

The company specifically denies any responsibility for the content, quality, or accuracy of material on the Internet.

With access to the Internet, users may encounter material which is controversial and which users may consider inappropriate or offensive. It is the user’s responsibility not to initiate access to such material. Additionally, it is the user’s responsibility to consider the source of any information they obtain, and to consider how valid that information may be.

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c.) Harassment

Do not use the company’s communication system to harass anyone.

This includes the sending of or verbally transmitting insulting, sexist, racist, obscene, indecent, or suggestive messages or materials over any portion of the communication system; includes tampering with others’ files; and invasive access to others’ equipment. In addition, users of any device that is part of the communication system—such as computers, microcomputers, video systems, Internet access, telephones, fax machines, electronic mail, networks, bulletin boards, and news groups—are obligated to comply with the restrictions and acceptable practices established for those specific resources.

5. EQUIPMENT:

a.) System Effectiveness

You must not attempt to interfere with the performance of the company’s computer system or change it in any way.

b.) Theft

All hardware, software, and communication-related supplies and documentation are the sole property of the company. They must not be removed from the company without proper authorization from the system administrator.

c.) Waste and Abuse

You must avoid any activity around your workstation that may result in damage to your computer, software, or information.

The company’s computer systems are a valuable resource, and they should not be abused or wasted. Avoid monopolizing systems and connect time, disk space, and other computer systems. Using the company’s computer systems to store personal data and to play computer games is not permitted.

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6. PENALTIES:

a.) Investigation

The company will investigate any alleged abuses of its communication system.

As part of that investigation, the company may access the electronic files of its users, and may reveal any user-related information to other users and/or to appropriate law enforcement authorities.

b.) Discipline

Discipline may be imposed if the investigation indicates that this policy or applicable federal, state and/or municipal laws have been violated. Violation, abuse, or disregard of these policies may result in disciplinary action, including but not limited to termination of employment or association with the company.

c.) Criminal Prosecution

Further, the company may (and may be required to) refer abuses in violation of state or federal penal codes to the appropriate prosecutor, police agency, and/or to the Justice Department, FBI, CIA, Secret Service, or other enforcement authority, and or all of which may have jurisdiction, which may subject the user to criminal investigation and prosecution.

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SECTION III: GUIDELINES OF SALES ASSOCIATES

A. COMMUNICATION WITH OFFICE

Success in the real estate business dictates being informed. Your availability is important to provide your clients/customers with the level of service the public has come to expect from Coldwell Banker Gundaker associates. You are encouraged to communicate regularly with your office. Your office should know how and where you can be reached. Sales associates are encouraged to regularly check voice mail, e-mail and with the office branch manager. It shall be the obligation of the sales associate to provide contact information to the office and branch manager. Further, the sales associate is accountable and required to assign their business to another sales associate when on vacation or otherwise indisposed.

B. INDEPENDENT CONTRACTOR RELATIONSHIP (BROKER AND

SALES ASSOCIATE AGREEMENT)

Each agent associated with Coldwell Banker Gundaker is an independent contractor, and not an employee. As an independent contractor, the associate is responsible for all his/her own taxes, insurance, expenses, etc. There will be no tax withholding, no unemployment or workman’s compensation coverage, no social security withholding and no paid health or life insurance offered through Coldwell Banker Gundaker. C. INDEPENDENT CONTRACTOR AGREEMENT

You will be asked, on associating with the company, to sign an Independent Contract Agreement that sets out these parameters. Periodically, it may be necessary to execute a new Independent Contract Agreement. You should take time to read the agreement carefully and retain a copy for your records. D. LEGAL ASSISTANCE PROGRAM (LAP)

Coldwell Banker Gundaker maintains an in-house Legal Assistance Program for the benefit of its agents for protection against certain types of claims made against agents arising out of the performance of real estate activities. The program is not an insurance policy. This program is offered on an “occurrence” basis. If you are under this program at the time of the occurrence, the program is in effect. Please refer to the current program.

E. LICENSING/BOARD OF REALTORS/MLS FEES

All sales associates are responsible to pay, in a timely manner, their own fees associated with maintaining their real estate license and local board membership.

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F. SALES ASSOCIATE EXPENSES

As an Independent Contractor, the sales associate is responsible for all personal expenses. Please refer to the broker and Independent Contractors Agreement.

G. AUTO INSURANCE Sales associates shall obtain automobile liability insurance on his/her vehicle. Minimum liability is required under state law. As stated in the Independent Contractors Agreement, sales associates vehicle shall be insured with minimum limit of $100,000 for each person and $300,000 for each accident and with property damage limit of $100,000, and uninsured motorist coverage in the amount of $25,000 per individual/$50,000 per occurrence which shall name Coldwell Banker Gundaker therein as an additional party insured hereunder and provide for 30 days advance notice of cancellation to all insured. For further information, sales associates are encouraged to contact their auto insurance carrier. An “Umbrella” policy is often a viable alternative.

H. SALES ASSOCIATE CONTINUING EDUCATION

The Missouri Real Estate Commission requires sales associates to complete twelve (12) hours of Continuing Education every two (2) years. At least three (3) hours of the twelve (12) hours of approved instruction shall consist of one (1) core class. The balance of the twelve (12) hours shall consist of courses, which have been approved for continuing education credit by the Missouri Real Estate Commission. Effective October 1, 1998, any person who has been issued a license shall, prior to the date of expiration of the original salesperson license, satisfactorily complete his/her twelve (12) hours of continuing education instruction in a classroom course of study entitled Missouri Real Estate Practice.

I. CUSTOMER COMPLAINTS

Sales associate should respond quickly to any customer complaint by listening and gathering information. For a complaint that has the potential to escalate into a lawsuit, see your branch manager and send all available documentation to Corporate Headquarters. Any complaint that cannot be resolved simply by the agent should be discussed with their branch manager immediately. Any letters or documents received in the office or to a sales associate(s) from an attorney or law firm must be forwarded to the corporate office immediately upon receipt. J. DISPUTES BETWEEN ASSOCIATES

If a complaint arises between two (2) Coldwell Banker Gundaker sales associates in the same office, the two (2) associates should attempt to work out the problem between themselves. If no resolution results, the dispute should be discussed with the branch manager(s).

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Should a dispute arise between two (2) sales associates from different offices within Coldwell Banker Gundaker, the associates should not contact the other associate’s manager, but rather discuss the issue with their own manager who may contact that branch manager. If the dispute involves an associate from another company, the Coldwell Banker Gundaker associate should discuss the dispute with their branch manager. Any formal complaints or filing with any regulatory agency shall be approved by branch manager or corporate management. Coldwell Banker Gundaker sales associates may

not file a complaint with the Missouri Real Estate Commission or Board against another Coldwell Banker Gundaker associate. Coldwell Banker Gundaker sales associates should never involve customers and/or clients in commission disputes.

K. UNEMPLOYMENT COMPENSATION/WORKERS COMPENSATION

As an independent contractor, associates have no coverage under these laws.

L. PROPERTY MANAGEMENT

Coldwell Banker Gundaker sales associates may not be involved in Property Management of any kind. The word “management” is defined as any of the following: assisting in the collection of rent, depositing rents in any way, shape or form, assisting in property improvement, sharing a fee for becoming involved and arranging in property improvement, sharing a fee for becoming involved and arranging for collecting a fee with respect to any repairs on a property which is leased or is to be leased. These activities are prohibited whether or not a fee is arranged and/or collected.

No associate affiliated with a branch office, New Homes Division, or any other department of Coldwell Banker Gundaker, shall become involved, in the management of any property, for any reason whether compensated for doing so or not. Coldwell Banker Gundaker associates shall retain the right to manage their own property, or property with which they are associated as a partner, or otherwise have any equity position.

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Frequently Asked Questions About The Do Not Contact Rules

These Frequently Asked Questions should be read in conjunction with NRT’s Do Not Contact Policy and will be updated from time to time. For additional information, please refer to the company intranet site for the link to the NRT Do Not Call website.

I - The Do Not Call Rules On July 3, 2003, the Federal Communications Commission (“FCC”) issued a Report and

Order that expanded the reach of the national Do Not Call rules to intrastate, as well as interstate, telephone solicitation calls. The real estate industry must comply with these FCC Do Not Call rules. Numerous trade associations, including the National Association of REALTORS, have petitioned the Federal government seeking clarification of the rules and limited exceptions (i.e. calling “for sale by owners,” expired listings, and referrals). Although the United States District Court for the District of Colorado declared the Federal Trade Commission (“FTC”) rules regarding the Do Not Call registry unconstitutional, the United States Court of Appeals announced on October 7, 2003 that the FTC may enforce the Do Not Call rules, including penalties, until the constitutional issue is resolved. The FCC Do Not Call rules are in effect as of October 1, 2003.

Can I call a FSBO or an expired listing? If you have a legitimate interested buyer you would not be making a sales call, and therefore you may call a FSBO or expired listing solely on behalf of such legitimate interested buyer. If you do not have a legitimate buyer or if you are calling to market your services (i.e. obtain the listing) you may NOT call if the FSBO’s or expired listing’s phone number is on a DNC list, even if the FSBO/expired listing advertised in a newspaper or had a lawn sign. In other words, sales calls to FSBOs and expired listings are subject to the normal rules of NRT’s Do Not Call Policy. Note however, that you may call your company's expired listings for 18 months from the date of expiration because of the company's established business relationship. Can I call neighbors of a new listing to invite them to an open house?

Since the primary purpose of the call would be to either sell such neighbors the house or to convince them to list with you when selling their home (i.e. market your services), it is a sales call and these numbers need to be checked on the NRT Do Not Call website in accordance with the normal rules of NRT’s Do Not Call Policy.

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What if I am doing a survey?

Any survey must be a legitimate survey, i.e. for the sole purpose of collecting data for analysis of a particular group or area. A legitimate survey involves a systematic plan to gather and document information for a defined purpose. A legitimate survey does not involve any marketing and therefore would not be a sales call that is subject to NRT’s Do Not Call Policy.

What is a personal relationship?

A personal relationship is a relationship that is outside the scope of your business, such as a friend or family member. The definition of a personal relationship does NOT include referrals.

What language is needed on an express written consent, e.g. Open House Sign In

Sheet, to obtain consent to call buyer prospects in the future?

"By providing your name, signature, and phone number you are consenting to receive phone calls from [brokerage] regarding our services.” The above language must be conspicuously positioned on the document. It is very important that you obtain a person’s signature. Merely obtaining a name and phone number constitutes an inquiry and affords you only 3 months to call. However, obtaining a signature, name and phone number provides you with written consent that doesn’t expire until rescinded.

What if I call someone on his or her business phone?

Business to business phone calls are not subject to NRT’s Do Not Call Policy - only sales calls made to residential and cellular phone numbers are subject to NRT’s Do Not Call Policy. Be careful when making a business to business call that you distinguish between a business phone number (not subject to the rules) and an individual’s cellular phone number (which is subject to the rules).

Can I call an agent for recruiting purposes? A recruiting call solely for the purpose of encouraging an agent to join your company is not a sales call, and therefore is not subject to NRT’s Do Not Call Policy.

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Do I need to retain a copy of the phone numbers I search on the NRT Do Not

Call website?

No. A record of your search will be automatically retained by the website for a period of 2 years from the date of your search.

Can I call a consumer referred from a relocation company or another real estate

broker?

The rules regarding the permissibility of calling a referral are not clear, and the National Association of Realtors has included this issue in its petition to the FCC for rules clarification. If there is a legitimate referral by a relocation company or a real estate broker that is provided to you as a result of a consumer’s request to be contacted, and the request follows such consumer’s business relationship with the referring relocation company or real estate broker, the consumer reasonably expects to receive this referred sales call. Therefore, promptly upon receipt you may call a legitimate referral from a relocation company or real estate broker. In all cases be sure to identify to the consumer the relocation company or real estate broker that made the referral. Note that a personal referral (e.g. a friend tells you that a neighbor needs a real estate agent) is subject to NRT’s Do Not Call Policy -- phone numbers must be checked prior to calling such consumers.

Can I make a phone call on behalf of a charity or charity event?

If you are calling solely on behalf of a legitimate charitable organization and the call does not involve any marketing of your services, you may make such calls. Note that you should refrain from disclosing the name of your company and should only refer to the name of the charity or charity event you are making the charitable phone call for.

Can I or my company outsource sales calling to a telemarketing firm?

The answer depends on the telemarketing firm’s ability to comply with the Do Not Call rules and to enter into a written agreement that includes sufficient protection for NRT and its affiliates against violations of the Do Not Call rules. If you would like to outsource your telemarketing activities please contact Stacy Tankel, Corporate Counsel for NRT.

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How will I know if I am complying with the caller ID requirement?

NRT has confirmed that all phones in all offices either currently transmit caller ID information, or will transmit caller ID information, in compliance with this requirement. If you are unsure if your residential or cellular phone transmits caller ID information you should contact your local carrier. II - The Do Not E-mail Rules

The CAN-SPAM Act of 2003 became effective January 1, 2004. The law governs the sending of commercial e-mail messages and requires any commercial e-mail (i) to be labeled an advertisement, (ii) to have an opt out mechanism and (iii) provide a physical address of the sender. This law will pre-empt all state anti-spam laws. At this time there is no national Do Not E-mail Registry.

What is a commercial e-mail message? Any e-mail the primary purpose of which is to advertise or promote your services or products.

Can I e-mail a buyer or seller that I am working with? Yes. An e-mail whose primary purpose is to facilitate, complete, or confirm a commercial transaction is not a commercial e-mail message. However, the message in the subject line cannot be false or misleading and the “from” line must accurately identify the sender.

What does it mean to “opt out”?

Opt out means that a recipient of a commercial e-mail message must be able to request not to receive any further e-mail messages from the sender through an Internet mechanism, such as replying to the sender via e-mail. When do I need to check e-mail addresses against the Do Not E-mail List?

You must check the Company Specific Do Not E-mail List prior to sending any commercial e-mail message. Remember, a transactional or relationship message is not considered commercial e-mail so you do not need to the check the Do Not E-mail List prior to sending such messages.

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Is an internal e-mail sent within my company indicating I have buyer looking for

a specific property or describing a new listing considered a commercial e-mail?

No. Internal e-mails sent solely to agents and/or employees of your company are directly related to your affiliation with your company and therefore are not commercial e-mail. Note however that such e-mail should be sent in accordance with your applicable company e-mail policy, which policy may restrict such e-mails.

Can I e-mail an agent for recruiting purposes?

A recruiting e-mail solely for the purpose of encouraging an agent to join your company is not a commercial e-mail.

Can an e-mail address on the Do Not E-mail list be removed? Yes. The recipient must provide you with written consent (which can be via e-mail) indicating consent to receive commercial e-mail messages and the e-mail address to which such messages can be sent. You can call 1 877 NRT-HELP (678-4356) to request to remove an e-mail address from the Do Not E-mail list.

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SECTION IV: ASSOCIATE COMPENSATION

A. COMMISSIONS

Gross commission paid to Coldwell Banker Gundaker

1. Our usual commission charge on residential property is 7% or higher. There are occasions when the commission rate is negotiated. Any negotiations must be authorized by your branch manager.

2. Any commission taken at less than seven (7) percent is subject to an

additional commission of $295.00, exclusions apply see your branch manager for more details.

3. Minimum commission: The minimum listing commission is $3,500

(applicable when 7% of list price equals less than $3,500), plus $295.00 additional commission for any transaction.

B. DIVISION OF COMMISSION BETWEEN SALES ASSOCIATES AND

COLDWELL BANKER GUNDAKER

EXAMPLE 1: Sales associate sells a Coldwell Banker Gundaker listing-

Sales price is $125,000 X 7% commission = $8,750 $8,750 X 25% = $2,187.50* *To both listing and selling associate EXAMPLE 2: Sales associate sells another agency’s listing- Sales price is $125,000 X 7% commission = $8,750 $8,750 X 45% = $3,937.50 $3,937.50 X 50% = $1,968.75*

*To selling associate

EXAMPLE 3: Sales associate’s listing is sold by another agency- Sales price is $125,000 X 7% commission = $8,750 $8,750 X 25% = $2,187.50* *To listing associate

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C. COMMISSION BETWEEN OFFICES: For in-house closed sales, gross commissions are split between Coldwell Banker Gundaker offices on a 50%/50% basis. For purposes of in-house sales, the co-op commission rate as published in the MLS shall be used to determine the gross commission that is to be split between the listing and selling offices. For example, if an office takes a listing at 7%, with an MLS payout of 3.15%, the selling office is entitled to a gross commission of 3.5%. In this example, the 3.15% MLS payout is imputed to be a 45% payout on a gross commission rate of 7%. The selling office receives 50% of the imputed rate of 7%. Exceptions to the above paragraph are as follows:

1. The commission paid to the selling office on New Construction sales will be the commission indicated in the MLS.

2. The commission paid to the selling office on Relocation listings will be the commission indicated in the MLS.

3. The commission paid to the selling office on REO listings, where the seller dictates a 50% payout, will be the commission indicated in the MLS.

4. The commission paid to the selling office on sales over $500,000 will be either the commission indicated in the MLS or 50% of the gross commission, whichever is higher.

D. INCOME: A sales associate’s income for Commission Incentive Plan purposes is the actual amount of commissions earned and paid to Coldwell Banker Gundaker whereby the company receives at least a 50/50 split of commission, including commission paid for outgoing referrals and relocation. This does not include sales pending, earnings from contests or bonuses paid to selling agents. E. SELLING AGENT BONUS: When a seller offers a commission bonus in addition to the normal commission to the selling agent as an incentive to sell their property the agent will receive 100% of the commission bonus. The new bonus will not be added to a sale associate’s cumulative income therefore, for bonus calculation purposes, as per the Commission Incentive Plan.

F. SALE OF ASSOCIATE’S LISTING OF PRIMARY RESIDENCE Sales associates whose normal commission earnings prior to bonus exceed $22,500, in either the previous calendar year or the current year, are eligible to list and sell their primary residence at a commission of only $500 on the list side. The payout published in MLS (regardless of who sells the property) will be paid to the selling broker.

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G. SALES ASSOCIATE’S PURCHASE OF PRIMARY RESIDENCE

Sales associates, whose normal commission earnings prior to bonus exceed $22,500 for the previous calendar year or the current calendar year, are eligible to receive a discount on the company dollar portion of the selling side commission. The discount is equal to 50% of the company dollar of the selling side commission. H. SALES ASSOCIATE’S LISTING OF INVESTMENT PROPERTY

Sales associates, whose normal commission earnings exceed $22,500 for the previous calendar year or the current calendar year, are eligible to receive a discount on the company dollar portion of the listing side commission. The discount is equal to 50% of the company dollar of the listing side commission. The benefit is limited to one closing per calendar year.

**NOTE** No discounts will apply on the sales associate’s purchase of investment property.

In all cases described in paragraphs F, G & H above, the commission collected by the associate will not be eligible for bonus as defined in the Coldwell Banker Gundaker Commission Incentive Plan.

G. LITIGATION

It is policy to avoid litigation whenever possible. Management will always have the right to determine whether or not any litigation or dispute shall be prosecuted, defended, compromised, settled or arbitrated.

In any transaction that results in a dispute, litigation or legal expense, the associates involved shall cooperate fully with the company. If the Legal Assistance Program is in place at the time of the occurrence that gives rise to the dispute, litigation or legal expense shall govern.

Associates may retain their own counsel for their own individual defense/representation at his/her own expense. In the event the associate chooses to be represented by Coldwell Banker Gundaker counsel, the company shall make the decisions outlined above. Please refer to the Legal Assistance Program.

H. COMMISSION DISPUTES Commission disputes, litigation or arbitration expenses are the responsibility of the agent and/or the agent and office. There is no provision under Legal Assistance Program for this. By rule, only the broker may seek arbitration or litigation. Accordingly, management will have the sole right to decide in which instances it shall seek arbitration or litigation.

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SECTION V: LISTINGS

A. THE LISTING PRESENTATION PREVIEW

Prior to a scheduled listing appointment, a sales associate is encouraged to view the property to aid the associate in preparing a more professional Competitive Market Analysis (CMA).

B. COMPETITIVE MARKET ANALYSIS (CMA) The CMA is a tool that provides the seller the data necessary to estimate the market value of the property, and makes the seller aware of market activity in the immediate area. The CMA compares the prospective listing to the recently sold properties, and competing listings. Coldwell Banker Gundaker offers several computerized CMA programs. Associates should see their managers, trainers or mentors regarding introduction on the use of “CMA Programs,” and obtaining materials and forms.

C. THE LISTING AGREEMENT

1. THE LISTING AGREEMENT DESCRIPTION The listing agreement is a legally binding service contract between Coldwell Banker Gundaker and the seller. The properly executed listing agreement will have the signatures of ALL owners, and include address, city, state, (county), zip code, and price of the listed property. The listing agreement should be accepted by your branch manager and must be an “Exclusive Right to Sell” listing for publication in the Multiple Listing Service (MLS). Accompanying the listing agreement must be a “profile sheet” furnished and available in your office from MLS. Any deviation from an Exclusive Right to Sell listing must be approved by the branch manager. A copy of the fully executed listing agreement must be delivered to the seller at the time of signing.

2. HOME WARRANTY PROGRAM

Coldwell Banker Gundaker offers a Home Protection Plan, through Coldwell Banker Home Warranty. Competitive prices with varying deductibles are available for both buyers and sellers. Written acceptance or waiver of coverage under the plan is required on every sale and listing.

D. LISTING PACKAGE CONTENTS See your Branch Manager or Office Administrator

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E. ADVERTISING The Company (at its own expense) provides a very comprehensive advertising program. Associates must have management approval of ad copy to run individual ads and must include at minimum, “Coldwell Banker Gundaker” and the office phone number (required by license law). Cost of any individual ads will be borne by the Associate. Any deviation from this policy requires management approval. Advertising by Sales Associates and Brokers alike are subject to the restrictions of the Rules and Regulations of the Missouri Real Estate Commission, as well as the Code of Ethics of the National Association of Realtors. If you intend to place advertising we strongly suggest that you read the MREC regulations regarding advertising. We also recommend that you familiarize yourself with those articles of the REALTOR Code of Ethics that deal with advertising, plus their related Standards of Practice. Pay particular attention to Article 19, and Standards of Practice 19-1 through 19-5.

Rules and Regulations of the Missouri Real Estate Commission state: “Every advertisement of Real Estate by a licensee…shall be made under the direct supervision and in the name of the broker or firm who holds the licensee’s license. If the licensee’s name or telephone number, or both, is used in any advertisement, the advertisement also shall include the name and telephone number of the Broker or firm who holds the licensee’s license.” In short, you must always identify yourself as a Coldwell Banker Gundaker associate in any advertising and, anytime you show a phone number in any advertising you must include your Coldwell Banker Gundaker office phone number. Since the MREC includes business cards in their definition of advertising, distributing a business card that does not include your office’s phone number is a violation. Your voice mail system, if used for business purposes, must clearly identify your association with Coldwell Banker Gundaker. Shared Advertising Prohibitions: Shared Advertising with primary service providers (lenders and title companies) other than Coldwell Banker Home Loans and US Title is strongly discouraged. Coldwell Banker Gundaker strongly supports our sister companies, Coldwell Banker Home Loans and US Title. Any advertising that includes the Coldwell Banker Gundaker logo with an affiliate provider other than

Coldwell Banker Home Loans and US Title is discouraged. In compliance with RESPA (Real Estate Settlement Procedures Act) and Missouri’s Directed Business law, our relationship with Coldwell Banker Home Loans and US Title is disclosed on our form number 225, “Affiliated Business Disclosure” which requires the customer/client signature. Under the same regulations, if an associate has any relationship with any other settlement service provider, that relationship must be disclosed in writing as well.

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REGULATION Z:

If you are running a property ad and giving specifics about financing, be aware of the Regulation Z requirements. Under Regulation Z (Truth in Lending) if any of the “triggering terms” are used in an ad, all of the following must be included: a) the amount or percentage of down payment, b) the terms of repayment, and c) the “annual percentage rate” using that term in the interest rate alone. The triggering terms are:

A. “$______Down payment” or “_______percentage down” B. “_______Monthly payments” or “________years to pay” C. “_______Monthly payment” D. “_______Percent loan” or “$_________interest or finance charge”

(Note: Violation of Regulation Z is punishable by a fine of up to $5,000 or one year’s imprisonment or both). Of course, your advertising is subject to all applicable provisions of Truth in Advertising, Truth in Lending, and Fair Housing Acts. In compliance with the Rules and Regulations, and to avoid violating other applicable restrictions, any ad you wish to place must be reviewed by your branch manager and/or the Coldwell Banker Gundaker Marketing Department before you place it.

F. LEGAL ADVICE

Missouri License Law prohibits associates from giving legal advice or discouraging anyone from seeking legal counsel. If the buyer and seller request/require legal counsel they should be advised to obtain it and if they refuse the buyer/seller should hand write a note and sign, time and date indicating the sales associate/branch manager recommended and encouraged that they do so.

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G. EARNEST MONEY

(It must be stated on the contract who holds the earnest money)

• Earnest money must be given to your branch manager immediately. Upon contract acceptance, earnest money will be handled in accordance with the terms of the contract.

• Earnest money should be in the form of a check, cashier’s check or money order. Always keep a copy for your records.

• When dealing with new construction, it is recommended that earnest money/construction deposit be escrowed. Form #226 must be attached to New Homes Construction Sales Contract or any other non-Board contract form.

H. ORDERING INSPECTIONS REPAIRS FOR CLIENTS/CUSTOMERS We discourage sales associates from ordering inspections on behalf of the customer/client. In those extraordinary circumstances in which this is unavoidable, do not so do without the signed authorization of the customer/client specifying the name of the company conducting the inspection. Do not order work or repairs for any customer/client without signed, written permission of the client/customer, specifying the name of the company to do the work. If the work is ordered by the agent it must be ordered in the client/customer name ONLY and with said signed, written approval of the client/customer.

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SECTION VI: AGENCY AND TRANSACTION BROKERAGE

A. Policy Statement on Agency and Transaction Brokerage

This policy statement contains the Coldwell Banker Gundaker Company policy on Agency and Transaction Brokerage. It is the responsibility of each Licensee to read and follow the Missouri Broker Disclosure Form as prescribed by the Missouri Real Estate Commission and the most current Missouri Real Estate Commission Statutes and Rules. See reference on-line at www.pr.mo.gov Each Licensee is authorized to act as a:

• Seller’s Limited Agent

• Buyer’s Limited Agent

• Disclosed Dual Agent

• Designated Agent

• Transaction Broker, (With manager’s approval) The Licensee needs the express written consent of the supervising broker/manager to act as the following:

• Landlord’s Limited Agent

• Tenant’s Limited Agent

• Sub-agent

• Our Company practices Transaction Brokerage for buyers only and only when the buyer declines Buyer Agency in writing and with manager’s approval.

By this policy, the designated broker authorizes his licensees to accept listing agreements, buyer agency agreements, to execute dual agency disclosure and consent forms and other employment agreements for brokerage services on his behalf. Other:

• Our Company does practice Designated Agency

• Each Licensee is responsible to use our most updated forms addressing Agency and Transaction Brokerage

• Each Licensee is responsible for seeking advise from his/her supervising broker/manager on any agency related questions or concerns. When in doubt, check it out before moving forward.

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B. Company Confidentially Policy

State law requires licensees to protect the confidential information of their clients. Confidential information includes several types of information. First, by specific statute, it includes: (a) the lowest price that seller is willing to accept; (b) the highest price that buyer is willing to pay; (c) the motivation of either party to enter into the transaction; (d) that a client will agree to financing terms other than those offered; and (e) previous offers and counter-offers of either party, and the statute also says that confidential information also includes information which is made confidential by written instructions from the client.

The duty of confidentiality does not allow nor authorize a broker/sales associate who represents a client to withhold any confidential information about the client when the failure to disclose the information would constitute a misrepresentation or unless disclosure is necessary to defend the affiliated licensee against an action of wrongful conduct in an administrative or judicial proceeding or a professional committee. The agent should also disclose confidential information about the client when such disclosure is required by statute, rule or regulation, particularly when the information constitutes an adverse material defect described in the statute.

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C. RECOMMENDATIONS REQUIRING CONFIDENTIALITY

1. Oral Discussion of Confidential Information

(a.) State Law Prohibits: Discussion or disclosure of confidential information of a client with any other person, other than a management broker in the company, without the permission of client, is not permitted. When there are questions as to whether the information is confidential, the agent should consult a member of management. The manager or other officer may recommend that the agent discuss with the client whether or not the sales associate should disclose the information. If the sales associate has permission of the client, the information may be disclosed. The clients written permission should be documented in the file, including the date, signature and time of the permission given.

2. Confidential Information Delivered Through Telephone or Facsimile Machine

(a.) Telephone Messages: When a receptionist/office assistant receives a telephone message for an agent, the message should be secured in the confidential envelope before placing it in the agent's mailbox. A duty agent taking a message may inquire of a caller as to the nature of the message, whether it is personal, business, name and number, but it is not appropriate for a duty agent to take the message for another agent when it pertains to business. The duty agent should always attempt to transfer phone calls to the correct agent's voice mail. Due care should be taken to insure the proper agent's voice mail has been dialed.

(b) Facsimile Machines: Incoming fax machines should be maintained at the receptionist's area of the sales office and faxes should be received and distributed by the receptionist/office assistant only or as reasonably directed by the manager. Secure fax in the confidential envelope sealed and place fax in the sales associate's mailbox. In the event that a sales associate has to collect the fax, the sales associate should review only the cover page to determine the number of pages, to staple together, and place them in the envelope for the correct agent.

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3. Confidential Information Contained in Offers, Counter-Offers and Contracts

Delivered to the Office

Deliver all contracts, offers, counter-offers and other transactional documents to the agent addressed and already sealed in an envelope. No one other than the addressee is authorized to open any such envelope without proper authority.

A designated agent should not authorize a non-designated agent to open any envelope.

4. Listings and Pending Files

All listing agreements, buyer representation agreements and pending files of each agent shall be maintained in locked file cabinets, accessible only by authorized staff and the agent involved in the transaction.

5. Postings of Sales Prices

Sales prices on pending transactions are not posted in the office.

D. COOPERATION/COMPENSATION OF SUB-AGENTS, BUYER'S

AGENTS and TRANSACTION BROKERS

The company believes it is in the best interests of the company's seller/clients to give property the widest possible exposure. Because sub-agents, buyer's agents and transaction brokers conduct showings in the market, company encourages cooperation and compensation to sub-agents, buyer's agents and transaction brokers in accordance with the terms of its listing agreements.

E. BROKER DISCLOSURE FORM

The Missouri Agency statute requires use of the Broker Disclosure Form ("Form") as prescribed by the Missouri Real Estate Commission. The Broker Disclosure Form must be given to any person who has not entered into an agreement to be represented. This includes prospective sellers, buyers, landlords and tenants. The form must be given to the person at the earliest practicable opportunity during or following the first substantial contact.

The Company recommends that at the first meeting the form be given to the Buyer and the Buyer Agency Agreement be discussed. If a Buyer refuses to sign the Buyer Agency Agreement, then the "Buyers Declination of Buyer Agency " form should be given to and signed by the Buyer or write (Declined) on Buyer Agency Agreement and initial or sign and date by buyer.

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SECTION VII: NEW HOMES

A. NEW HOMES DIVISION The New Homes Department is located at the Corporate Headquarters and is structured to serve our builders and associates.

B. BUYER REGISTRATION

It is recommended that an associate accompany, and register, their prospects at each New Homes Subdivision. The majority of builders require that associates accompany their prospects and register them on the prospect’s initial visit. Registrations are normally good for sixty-(60)-days. Generally, telephone registrations are not valid registrations. Lot deposits are not considered contracts, so re-registering a prospect will be necessary, even if the prospect has tendered a lot deposit but has not executed a contract to purchase.

Builders have varying registration policies. Sales associates are strongly encouraged to inquire about a builder’s registration guideline.

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SECTION VIII: AFFILIATE & SUPPORT COMPANIES

A. COLDWELL BANKER GUNDAKER SCHOOL OF REAL ESTATE The Coldwell Banker Gundaker School of Real Estate has responsibility for conducting various Real Estate education classes. The Coldwell Banker Gundaker Training and Education Department has received national recognition for its excellence, which offers classes and seminars to assist in each stage of your career including specialty workshops, Continuing Education and pre-license education. The Training & Education Department maintains a list of courses offered on their website at cbschool.com. In addition to the above courses offered, the Training & Education Department offers advanced training for experienced associates.

B. MARKETING DEPARTMENT

The Coldwell Banker Gundaker Marketing Department is responsible for all areas of Company advertising, sales promotions, public relations, sales materials, printing and publicity. Information on the resources offered to sales associates by the Marketing Department can be obtained on the company intranet site. C. RELOCATION SERVICES

1. Role: Relocation Services develops and maintains relocation/referral business (buyers and sellers) generated from the Cartus Broker Network, Corporations, Third Party Relocation Companies, Affinity Groups, and Non-Network Brokers locally and throughout the United States, as well as E-Leads business received from the Relocation Services’ website. With all of these affiliations comes the very best relocation business, which means a high degree of accountability and excellent training opportunities for our sales associates.

2. "Top Block" Service: "Top Block" Service is a surveyed performance

measurement Cartus uses to evaluate the overall service provided to the transferee by the Relocation Services staff and the sales associate. Relocation Services’ goal is to assist the sales associate in providing "Top Block" Service to the transferee by supporting, coaching, and assisting the sales associate through the relocation process.

3. Outgoing Referrals: All sales associates have an opportunity to earn

additional income by facilitating their business outside the CB Gundaker service area by placing Outgoing Referrals with the Relocation Services department. CB Gundaker's company policy requires all Outgoing Referrals be placed through the Cartus Broker Network. Sales associates can place

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Outgoing Referrals once they have permission from the buyer or seller one of three ways:

• Log on to cbgconnect.com and click on Outgoing Referrals under Relocation Services and complete the required information and submit on-line (quickest and preferred method).

• Complete a referral form and fax to 314-298-5020

• Call Relocation Services with the required information at 314-298-5024.

4. Incoming Referrals: There are several types of business that generate incoming referrals that are placed with our sales associates by Relocation Services. Examples are:

• Broker to Broker

• Corporate Buyer

• Affinity Buy/List

• Advance Marketing/Home sale

• Corporate Inventory

• E Leads

Relocation Services will place the referral with our sales associate, first based upon whether the referral is “Attached” or “Unattached”; i.e. “the sales associate has a relationship with the client/referral” or “there is no attachment to our sales associate”, respectively.

For “Unattached” referrals, the type of referral will identify what specifically

trained/certified group of sales associates are qualified to receive the referral. Further details are provided in the Relocation Services Policy & Procedures Manual.

5. How To Contact Us: For questions concerning Relocation Services’ benefits or requirements, or to request a copy of the Coldwell Banker Gundaker Relocation Services’ Policies & Procedures Manual, call 314-298-5006.

E. NRT MISSOURI REFERRALS NETWORK, LLC.

1. ORGANIZATION: NRT Missouri Referrals Network, LLC., is a privately

owned Missouri LLC organized for the purpose of providing Real Estate service to the public, specializing in referrals of buyers and sellers in the St. Louis area. Through its exclusive marketing agreement with Coldwell Banker Gundaker Realtors, it is able to refer and collect buyer/seller referral fees.

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2. REFERRAL COMMISSIONS (20-40%): Referral commissions received by

NRT Missouri Referrals Network, Inc. shall be 20% of the referred listing or selling “leg” of the commission. Commissions will be divided 50/50 between NRT Missouri Referrals Network, Inc, and the Referral Specialist. If a Specialist is a principal in a transaction; the sale or purchase of either their personal residence or their one investment property, they receive double the normal referral fee, (40%) of the listing or selling side of the commission. Generally the referral associate would be a signatory to the contract.

SECTION IX: AWARDS & RECOGNITION AND ANNUAL AWARD

PROGRAMS For details of the awards & recognition please, refer to the annually published Commissioned Incentive Plan Brochure.

DISCLAIMER

All Guidelines offered in this manual are done so to assist the sales associate in

determining professional approaches to real estate related activities of Coldwell

Banker Gundaker. All Guidelines set forth in this manual are subject to

modifications, deletions or additions as required. This manual is not intended

as an addendum or supplement to the sales associates Broker Salesperson

Agreement or the Legal Assistance Program.