Introduction

These Rules provide for the handling of referrals and for the paying of referral fees. It should be strictly understood by all interested parties that the paying of referral fees is entirely separate from any real estate sales transaction. Moreover, referral fees, in any amount, are in no way accounted for, reflected on, or understood to be constituted within a real estate transaction settlement statement (formerly known as a HUD One or other escrow term).

Not all persons, whose names are presented to divieight as referrals, will purchase (or sell) co-ownership. As provided in these Rules, and as pertaining to the paying of a referral fee as promised, it is important that all interested parties indisputably understand the definition of the term “Referral”. See “Definition” below. It may also be important to understand divieight’s description of a person making a Referral (see items Ten and Eleven below).

Definition

A “Referral”, as defined, requires the existence of several conditions precedent. See items One through Three below:

One: There is to be a good faith presenting to divieight, using the Referral form found on the divieight website, of the name of a person(s) thought potentially to be a candidate for participation in a co-ownership purchase transaction (whether such person is a Buyer or Seller). Use of the Referral form is necessary for record-keeping. Any other method for attempting a Referral, such as by email, text or other method, is not valid or recognized.

Two: Regarding the person whose name(s) was duly presented, they must make good faith and timely use of certain transaction process elements devised by divieight. These would include acceptance of, and compliance with, the divieight transaction documents (which are, specifically, the divieight Priority Reservation Agreement and the divieight Co-ownership Operating Agreement).

Three: Regarding the person whose name(s) was duly presented, they must make good faith and successful completion of the closing (or settlement) of the contemplated co-ownership real estate transaction.

Additionally applicable to these Rules: There are additional conditions or circumstances are applicable to these Rules. See items Four through Twenty below:

Four: A closing (or settlement) could be complicated, delayed or rendered impossible for reasons beyond the control of the person(s) whose name has been duly presented. Nevertheless, the paying of any Referral Fee is dependent on the conditions precedent as set forth herein and subject to item Eighteen below.

Five: An ownership interest taken by a person may, in reality, be an interest taken by two persons (or a couple). For the avoidance of confusion, eight individual interests in real estate co-ownership may, in fact, be ownership by eight couples. Where this, or any such similar instance, affects the paying of a Referral fee, only one Referral fee would be paid attributable to an individual interest – regardless of whether that one individual interest is held by two or more persons. Nothing in this item Five is construed to contradict the provisions of items Six and Seven below.

Six: There is no limit in the number of Referrals that may be offered by any one person making a potential Referral(s) – even as pertaining to a single transaction. In other words, the names of two or more persons may be duly presented as pertaining to the same transaction. In such case, a Referral fee would be payable attributable to each of those two or more.

Seven: There is no limit in the number of Referrals that may be made by a single person respecting the possibility of numerous transactions.

Eight: A Referral fee may also be payable in reference to a person who is a Seller of co-ownership shares in real estate. The definition of “Referral” is properly expanded in instances where the name of a Seller has been provided to divieight.

Nine: Regarding any claim of entitlement to a Referral fee(s), there shall be no attempt to circumvent the Rules for the purpose of claiming a monetary bonus greater than the intention herein set forth.

Ten: Where a successful Referral is made to divieight, the person so referring is termed by divieight to be an “Advocate”.

Eleven: Where a person “recruits” an Advocate, that person is termed by divieight to be an “Elite Advocate”. An example of an Elite Advocate is someone who alerts, or otherwise informs, a person who may successfully become an Advocate.

Twelve: In promotional material, divieight has committed to the paying of Referral Fees under various circumstances. These are intended to include a fee structure for an Advocate and Elite Advocate respectively. Understanding the details of this fee structure may be accomplished by means separate from these Rules. It is possible that any person may be entitled simultaneously to a Referral Fee as both an Advocate and Elite Advocate. Further, no licensing is required to be eligible to receive a Referral Fee whether as an Advocate or Elite Advocate.

Thirteen: It is noted that the website provides prospective Buyers an opportunity to provide their preferences. Their preferences submitted will be an indication of their choice for location in purchasing real estate and their budget for doing so. If a Referral is received, and at the discretion of divieight, that Referral may be directed to the listing agent, if there is one, reasonably thought to be reflective of the preferences submitted. It is understood that divieight assumes no responsibility for directing a potential Referral to any agent ahead of what is later thought to be a dispute among agents. Whether a Referral was properly directed to any agent must be resolved among agents and without the involvement of divieight.

Fourteen: The offering of a Referral Fee is strategically intended to advance the concept of independent co-ownership across a broad geography. Further, it is strategically intended to engage the involvement of real estate professionals and non-real estate professionals alike. Specifically, it is calculated to incentivize the involvement of persons, who do not live and work in recreational markets, by making Referrals that will ultimately benefit real estate professionals who do live and work in recreational markets. Moreover, and even within a given recreational market, it may incentivize real estate professionals who are not involved in the transaction, but who nevertheless make a referral attributable to the transaction in the very same market where they live or work. All of the above instances will accomplish the strategic goal intended.

Fifteen: Regarding item Fourteen above, and although it is not specifically contemplated that a real estate agent would be entitled to a Referral Fee attributable to that agent’s own client, these Rules expressly allow that a Referral Fee will indeed be paid in such instance. However, doing so is subject to the agent’s license requirements or restrictions and subject also to the agent’s local market prohibition or broker practice or custom. As divieight may not be familiar with any such restriction, the agent is under a good faith obligation to give appropriate notice.

Sixteen: Under any circumstances, no more than nine (9) Referral Fees will be paid attributable to a single transaction. Where persons are entitled to Referral Fees according to these Rules, the payment of such would be limited to a total of eight (8) pertaining to the Buyers and one (1) pertaining to the Seller.

Seventeen: The offering of a Referral fee may be modified, or discontinued, solely at the discretion of divieight. The discontinuation of the offering shall be evidenced by the removal of the referral form currently found on the website. Although such offering may be modified or discontinued at a future date, divieight shall make every good faith effort to honor and comply with its published commitment upon which any referral has been relied.

Eighteen: Subject to divieight’s promise to honor its good faith commitment referenced in item Seventeen above, names presented have a “shelf-life”. After six (6) months from the time a potential Referral has been duly presented, if such person(s) named has not closed a transaction, as referenced in item Three above, the name of that person(s) shall be inactivated. In this instance, persons having duly presented a name(s) are no longer eligible to claim entitlement to a Referral Fee. However, there is nothing that disallows a person from again presenting that name(s) in the manner described in item One above.

Nineteen: In all cases, the interpretation of these Rules is done at the sole and unfettered discretion of divieight.

Twenty: The making of a Referral(s), and engaging in other activity described herein, constitutes acceptance of, and agreement with these Rules.