This letter of understanding is made between Lease to Own Financing, LLC (herein, LOF) and ____________________________________ (herein, Broker).
Whereas Broker is a real estate or mortgage broker or otherwise a finder and LOF is a private commercial mortgage broker that specializes in Lease to Ownership Financing, and
For good and valuable consideration, the undersigned agree to the following provisions of cooperation and joint venture between them, but not to create a general partnership.
1. The Broker and LOF will cooperate so that they generally provide mutually supportive services and, where appropriate, each will direct their clients to the services of the other. Where the Broker provides a client to LOF the following fee-sharing shall apply (Broker is responsible for fee-sharing with interim parties brought in through the Broker):
A. Pre-Qualified Referral Fee: where the Broker provides an introduction only, the Broker will (upon closing) receive a minimum of $500, or 1/10th of 1 percent of loan amount, whichever is greater (requires completed pre-qualification questionnaire, as posted on the LOF web site).
B. Pre-Qualified Referral Fee with Agreement: where the Broker provides both an introduction and a completed Commercial Mortgage Agency Agreement, the Broker will (upon closing) receive $1,000 or 2/10th of 1 percent of loan amount for the first million, whichever is greater, and 2.5/10th of 1 percent of any amount above one million (requires completed pre-qualification questionnaire and broker agreement, as posted on the LOF web site).
C. Producer’s Fee with Full Client Service: where the Broker (1) provides both an introduction and a completed Commercial Mortgage Agency Agreement and (2) provides ongoing contact and oversight with the client, the Broker will (upon closing) receive One-Half of the Mortgage Broker Fee as set forth in the LOF standard Commercial Mortgage Agency Agreement with the Client, as posted on the LOF website (requires completed pre-qualification questionnaire and broker agreement, as posted on the LOF web site, completed lender requirements and attending the closing on behalf of LOF; LOF will provide reasonable logistics and support during each step in the financing process).
D. Cooperating Broker Override Fee: where the Broker introduces LOF, in writing, to another broker who enters into a Cooperating Broker Agreement, LOF agrees to pay Broker an Override Fee equal to from fifteen (15) through five (5) percent of the fee collected (15% - first level, 10% - second level and 5% - third level).
2. The parties agree that neither will circumvent the other with regard to the business contacts and information revealed to each other and will do business with the business contacts disclosed only through discloser. Each party agrees to keep confidential all of the business information, business plans and proprietary information of the other.
3. The parties agree to act in good faith toward each other, for their mutual benefit. The parties agree that any dispute between them will be settled by mediation or binding arbitration in New Jersey under the auspices of the American Arbitration Association or other mutually agreed arbitrator.
Wherefore, the parties have signed, sealed and delivered this letter for the purposes expressed herein, on the ___ day of ____________________, 2005.
Business Name:
____________________________
________________________ _____________________________
Ralph Fucetola JD Name: _______________________
lease-ownership@usa.net Email: _______________________
58 Plotts Road Address: _____________________
Newton, NJ 07860
973-300-1519 Phone: _______________________
Fax: 973-300-5486 Fax: _________________________
Please let us know how you found our web site: __________________________________________
Who introduced you to us? __________________________________________
Please tell us a bit about yourself (you can also fax us your resume):
© 2005
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