Broker Cooperation Policy- We all win working together!

   
Professionalism,  confidentiality, respect, and courtesy are of the utmost importance  to Pacific Reliance Business Brokers (PRBB), its agents and brokers, and  most importantly, its clients – PRBB Business Sellers. With this in  mind, PRBB has adopted a policy of cooperation with other established,  bona-fide professional business brokers on PRBB eligible sole and  exclusive business opportunity listings provided that the Selling Agent  or Broker:

A. Is a licensed, established California business  broker in good standing with the California Department of Real Estate  that is either a sole proprietor, or with a bona fide business brokerage  firm.

B. Is an active Business Broker, with at least 5 active  business opportunity listings publicly advertised (albeit in a generic  fashion) on the market, and with proof that they have completed at least  6 business sales within the prior 12 months.  PRBB anticipates that  Cooperating Brokers will appreciate the dramatic cost structure  differential that exists between obtaining, packaging and promoting a  Business Opportunity listing versus the cost associated with procuring a  Buyer.  Active Business Brokers may be eligible for referral fees of up  to 20% of the total commission received by PRBB.  If PRBB acts as the  Selling Broker, it will agree to the same split.  Inactive Business  Brokers and Commercial Real Estate Brokers, may be eligible for referral  fees of up to 10% of the total commission received by PRBB. 

C.  Agents and Brokers with commercial brokerage firms, and on occasion,  with residential real estate firms are often eligible for referral fees  of up to 10% of the total commission received by PRBB (similar fees are  also provided for Seller referrals that result in a sale).

D. Hold  the confidentiality of each Business Opportunity in the highest regard,  exercise courtesy and consideration for the Business and its Seller,  and make its best efforts to insure its clients do the same.

E.  Conduct all communications related to the Business exclusively through  PRBB. This shall include, but not be limited to any and all Business  showings, obtaining of financial or other data pertaining to the  Business, and the submission or presentation of any Letters of Intent  ("LOI"), or offers to purchase the Business.

F. Has provided PRBB  an executed Non-Disclosure Agreement / Confidentiality Agreement from  their client that PRBB deems sufficient (shall one not be deemed  sufficient, PRBB may be used).  In general, PRBB will not enter into a  cooperative or referral agreement in those instances where PRBB has  already been in contact with the Buyer, the Buyer's counsel, or other  brokers who represent the same buyer.

G. Has provided PRBB a  completed Buyer Financial Profile, or alternately, proof that PRBB deems  satisfactory that their client is financially qualified to potentially  acquire the business opportunity the Selling Broker seeks to provide  them data on. PRBB does not seek personal financial statements, account  statements, or any other qualifying material that includes account  numbers to fulfill this requirement.

H. Has a representation  agreement in place with their client at the time the request for Broker  Cooperation is made and provides PRBB a copy of said agreement upon  PRBB request for the same. Selling Broker shall notify PRBB, in writing  in advance of entering into a Broker Cooperation Agreement ("BCA") with  PRBB, of any fees or commissions it has already received by its client,  or of any fees or commissions it anticipates receipt of (in addition to  Listing Broker commission splits) upon completion of a sale.

I.  Not solicit or enter into any listing or representation agreement of any  kind with the business or any of its owners with the prior written  consent of the Listing Broker within twenty-four months of the execution  of the last BCA entered into on any listing.

J. Not advertise  the business opportunity, either publicly or privately, to prospective  clients not covered in the BCA, or to any additional party (e.g.other  broker, agency, etc.).

K. Agree that in the event of a commission  dispute, all legal fees and dispute related expenses related to the  collection of brokerage fees shall be shared in the same proportion as  the Broker's Fee is to be split.

L. Acknowledge that PRBB has a  right to earn a commission under its contracts with its Sellers, and  agree that neither the Selling Broker nor its clients will interfere  with or attempt to circumvent PRBB contract with its client. Selling  Broker further acknowledges that both it and its clients may be subject  to legal recourse directly from Seller for damages incurred, or from  PRBB for payment of brokerage fees, shall any such interference occur.  Selling Broker understands that a breach of confidentiality by it or its  client could result in similar legal action from the Seller or Listing  Broker.

M. Adheres to the Code of Ethics Established by the  California Association of Business Brokers ("CABB").  Please refer to  the CABB website for details at www.CABB.org.

N. Hold PRB  harmless from any disputes arising between Selling Broker and its  client, and defend PRBB in any such disputes. Agree that any disputes  that arise between PRBB and Selling Broker shall be settled by Binding  Arbitration administered by AAA in Los Angeles, California. Arbitration  fees shall be equally split between the parties, with the prevailing  party being entitled to recover its costs in addition to any damages  awarded.