THIS ADDENDUM to the Independent Contractor Agreement dated the day of , 20, (“ICA”) is entered into by and between d/b/a RE/MAX (“Licensee”), and ("Contractor"), and is entered into and effective on this day of , 20.
WHEREAS, Licensee and Contractor have determined that it is their mutual best interests to reform by addendum the payment method for the financial obligations set forth in the ICA relating respectively to Contractor’s fees and shared office (Fixed) Expenses for the twelve month period covered by the ICA by adopting the RE/MAX Alternative Payment Program ("RAPP");
NOW THEREFORE, in consideration of the mutual covenants set forth below and other consideration, the sufficiency of which is acknowledged, Licensee and Contractor hereby agree as follows:
1.Fees: Pursuant to the terms outlined in the ICA, Contractor is required to pay, to Licensee, among other items, an Initiation Fee, Security Deposit, Administrative Fees, Fixed Expenses and Institutional Promotional Fees. By the terms of this Addendum, Licensee may defer all or certain parts of specific expense categories (other than Variable Shared and Variable Personal Expenses or non-deferred portions of other expense categories) in exchange for an assignment by Contractor of a percentage of Contractor's Closed Commissions and the additional payment of a $100.00 Service Fee per month as hereinafter provided.
2.Term: Subject to rights of termination as provided in the ICA and this Addendum, the term of this Addendum shall run for a period of months, which term cannot exceed the expiration date of the ICA. This Agreement may be renewed by execution of the RAPP Addendum required by Regional at the time of such renewal. Contractor understands and acknowledges that the terms and conditions of renewal may be different than the terms stated in this Addendum.
3.Deferred Sums: During the term hereof the following fees and/or expenses and the respective portions, if any, thereof shall be deferred (hereafter called "Deferred Sums"), to wit:
"DEFERRED SUMS"
A.$ of the $
Security Deposit shall be deferred$
B.$ of the $
Initiation Fee shall be deferred$
C.$ of the $
Monthly Administrative Fee shall be deferred
for a period of months$
D.$ of the $
Monthly Fixed Expenses shall be deferred
for a period of months$
E.$ of the $
Institutional Promotional fee shall be deferred
for a period of months$
TOTAL of "Deferred Sums" TOTAL$
F.Variable Shared and Personal Expenses. Contractor shall be billed monthly, pursuant to the terms of the ICA, for his Variable Shared and Variable Personal Expenses. Contractor agrees that such expenses and any undeferred fees or expenses shall be timely paid pursuant to the terms of the ICA.
- Alternative Payment Service Fee. Each month upon receipt of Contractor's monthly billing statement, Contractor shall pay to Broker a non-refundable Alternative Payment Service Fee in the amount of One Hundred Dollars ($100.00) per month. This fee is separate and distinct from the Deferred Sums outlined above and is charged to Contractor for the right to participate in the RE/MAX Alternative Payment Program. This Alternative Payment Service Fee is payable in advance and is earned for the entire month on the first day of each month. Further, the Alternative Payment Service Fees is in addition to all other fees and expenses payable by Contractor under the terms of the ICA and shall be discontinued immediately if and when the Deferred Sums are paid-in-full. There will be no proration of the Service Fees.
.
H.Personal Expenses, Miscellaneous Shared Expenses and Institutional Advertising. This Amendment concerns only the obligations of Contractor to Broker for the payment of Management Fees and Shared Office (Fixed) Expenses and does not change Contractor's obligations to pay other fees, expenses and dues that are required by the ICA including without limitation, Late Payment Charges and Interest on financial obligations not timely paid under the ICA.
4.Assignment of Commissions: During the term hereof and until Licensee has been paid all due Deferred Sums, Contractor transfers and assigns to Licensee % of Contractor's Closed Commissions, to be applied by Licensee to the payment of all the Deferred Sums, plus the monthly Alternative Payment Service Fee, plus any and all other sums that might be due and payable to Licensee pursuant to terms of the ICA or any Addendum thereto. When Contractor has paid all Deferred Sums to Licensee, the Service Fee shall cease, without proration, and Contractor shall receive one hundred percent (100%) of all Closed Commissions due Contractor less %Broker Service Fee on all gross real estate income and commissions (including referral fees), earned, derived or otherwise generated from closed real estate transactions handled by Contractor on a calendar year basis. Contractor shall also pay Licensee all non-deferred amounts for the remaining term of the contract. Notwithstanding the foregoing, Contractor agrees and acknowledges that effective May 1, 2010, Contractor’s Broker Service Fee payable to Licensee shall be % on the first $250,000.00 of allgross real estate income and commissions (including referral fees), earned, derived or otherwise generated from closed real estate transactions handled by Contractor on a calendar year basis. At any time, Licensee may review Contractor's progress toward payment of Deferred Sums, and Licensee reserves the right to require Contractor to assign a larger portion of Contractor's Closed Commissions to be applied toward the payment of Deferred Sums upon giving Contractor thirty (30) days written notice. Licensee may terminate this Addendum by giving Contractor thirty (30) days written notice. Contractor may also terminate this Addendum and revert to the payment obligations outlined in the ICA by giving Licensee sixty (60) days written notice and by paying Licensee all accrued Deferred Sums in addition all other sums due and owing to Licensee by Contractor prior to the date Contractor reverts back to the payment obligations outlined in the ICA.
5.Effect of Termination: This Addendum shall automatically terminate upon the effective date of any termination or expiration of the ICA. Should this Addendum and/or the ICA terminate or expire, and there remains a deficiency in the amount of Deferred Sums due to Licensee, Licensee shall not pursue Contractor for any of the unaccrued Deferred Sums; however, Contractor shall be responsible for all other sums accrued, due and owing to Licensee through the date of termination/expiration. In addition to any other remedies under the ICA or applicable law, Licensee may keep and market Contractor's listings and credit any commission collected from the sale of these listings against all sums that have accrued and are owedto Licensee through date of termination/expiration. Furthermore, in the event that there are any excess commissionscollected above and beyond the sums accrued and owed to Licensee, Licensee may retain such excess commissions collected as liquidated damages. Nothing stated herein shall in any way release Contractor from payment of variable Shared or variable Personal Expenses, Administrative Fee, Institutional Promotional Fee, Broker Service Fee, any non-deferred fee, deposit, or any other sums that might be due to Licensee pursuant to the ICA.
6.Effect of Amendment and use of Capitalized Terms. This Amendment is hereby incorporated by reference into and made a part of the ICA and shall be read as a material part thereof. It is expressly understood that to the extent, if any, that the terms and conditions of this Amendment are different from, or conflict with, those set forth in the ICA, this Amendment shall control. This Amendment may not be modified, changed, revised or altered, except by instrument in writing signed by the parties. Other than as modified by this Amendment, all terms, conditions, provisions and obligations of the ICA shall continue in full force and effect. Unless otherwise defined herein, capitalized terms used in this Amendment shall have the same meaning ascribed to them as in the ICA.
IN WITNESS WHEREOF, the parties have executed this Amendment on the day and date set forth adjacent the signatures below.
"CONTRACTOR""LICENSEE"
X X
Printed Name:Printed Name:
Date: ______
“SPONSORING BROKER”
X
Printed Name:
Date: ______
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Texas Standard RAPP Plan-Version 2009.1Copyright©2009 RE/MAX of Texas. All rights reserved