NOTE 18 - RELATED PARTY TRANSACTIONS

In November 2014, one of GMC’s executives retired. Other executives of GMC had the option and executed their right to purchase the retiring executive’s units in Guild Management, LLC, an indirect parent company of GMC prior to the IPO. The purchase was funded by GMC and, in return, GMC received a note receivable from Guild Management, LLC for approximately $2.5 million. The note was paid in full prior to the IPO.

In April 2017, Guild Investors, LLC, GMC’s former parent prior to the IPO, sold units to Guild Management III, LLC for $2.3 million in consideration, of which $1.2 million was advanced by GMC in exchange for notes receivable from Guild Management III’s members. These members fully paid back the notes and accrued interest during 2019.

On January 1, 2019, one of GMC’s executives retired, which triggered a repurchase of the executive’s membership interest in Guild Management, LLC, and a one-time payout of $2.0 million of deferred compensation. GMC’s former parent, Guild Investors, LLC, sold 13.7038 shares of GMC to the executive in exchange for the executive’s membership interest in Guild Management, LLC. The executive in turn sold the shares back to GMC in exchange for a promissory note of $8.0 million, which is payable over 16 quarters. During 2020 and 2019, the Company made payments of $2.1 million and $1.6 million, respectively, to the executive, and $4.6 million remained unpaid as of December 31, 2020.