Fillable Printable COMMISSION AGREEMENT
Fillable Printable COMMISSION AGREEMENT
COMMISSION AGREEMENT
MK-250.05 (5/03)
COMMISSION AGREEMENT (Sample Only)
1. Parties
a. , a California limited partnership, ("Landlord").
b. , a licensed California real estate brokerage company, ("Broker"),
represented in this transaction by , himself/herself a licensed agent.
2. Lease
Dated between Landlord and
("Tenant") regarding , CA ("Premises"), including all
rental increases, additional tenant improvements, and all options exercised by Tenant to extend the
lease term or purchase the Premises and any other possible variations to such lease or other
agreements between Landlord and Tenant including their respective successors and assigns regarding
the Premises.
3. Commission
Based upon 5% of $ .00 as ( ) months'(maximum 60 months) base net rental* at $
per square foot times gross square feet for the Premises, equaling a commission of $
, (5% x x $ = $ ).
*Base Net Rental = Rent excluding NNN charges and tenant improvement costs amortized into the
base rental rate.
4. Payment Date
Landlord shall pay Broker the first one-half (1/2) of the Commission Ten (10) calendar days
following the Lease Commencement Date and provided Tenant has:
a) Occupied the Premises; and if applicable, has approved in writing the Tenant Improvements to
be installed by the Lessor pursuant to Section __ __ of the Addendum to the Lease and fully
accepted the condition of the Premises without any other initial landlord obligation.
b) Paid Landlord the initial Month's Rent and Security Deposit required under the Lease, in good
U.S. funds equivalent to cash.
c) Not breached the Lease.
Landlord shall pay Broker the second one-half (1/2) of the Commission Ten (10) calendar days
following the date that Tenant has:
a) Paid the second monthly rental payment due under the Lease. Months for which Base Rental
Payment has been abated do not count toward the "second monthly rental payment" due.
b) Not breached the Lease.
Landlord reserves the right to negotiate a deferred payment schedule to Broker in the event of
substantial Tenant credit risk.
5. Complete Compensation
Payment of the Commission by Landlord to Broker shall constitute the complete real estate
commission, fee, and compensation due Broker from both Landlord and Tenant by reason of Broker
being the procuring cause of the execution of the Lease between Landlord and Tenant. Broker shall
be entitled to no additional compensation if (i) Tenant exercises any Options under the Lease (either
to extend the lease term or purchase the Premises); (ii) Landlord and Tenant negotiate a new lease or
purchase agreement for the Premises after the Lease commences; (iii) rental under the Lease
increases due to rental adjustment clauses in the Lease; or (iv) rental under the Lease increases due to
amortization of tenant improvements rental adjustment clauses.
Commission Agreement -- Page 2 of 2 Date
(Sample Only)
6. No Third Party Agents
Broker warrants to Landlord that (a) there are no other agents or third parties which have been
involved or who are otherwise due any compensation from Landlord or Tenant by reason of the
execution of the Lease between Landlord or Tenant, (b) broker is fully licensed and legally entitled to
be paid a real estate commission and (c) broker has a binding written agency agreement with tenant
in which broker is the sole agent of tenant regarding this Lease.
7. Attorneys' Fees
Should litigation be necessary to enforce this Agreement, the prevailing party shall be entitled to its
attorney fees. Any litigation shall be located in Orange County, California, the County in which the
Premises are located.
8. Broker Indemnity
Broker agrees to indemnify, protect, defend and hold Landlord harmless from any liability or expense
(including attorney fees) incurred by Landlord by reason of any claim by Tenant that Broker
misrepresented to Tenant concerning any aspect of the Premises including without limitation, the
zoning, condition, use, size of the improvements at the Premises or availability of any utility for the
Premises.
9. Lease Signature Deadline
This Agreement shall only be binding on Landlord if: (i) Landlord and Tenant have fully executed
the Lease and completed all Exhibits to the Lease by 5:00 PM on ; and (ii) Tenant
has provided Landlord the following documents required of Tenant under the Lease: (a) Certificate of
Insurance or Binder pursuant to Section 8 of the Lease; (b) Corporate Resolution and Certificate of
Secretary authorizing the Lease per Paragraph 44 of the Lease; and (c) the prepaid Base Rent and
Security Deposit in good U.S. Funds.
After this deadline, this Agreement shall have no further effect, and Landlord shall have no
obligation to pay any portion of the commission or any other compensation to Broker.
10. Date of Agreement; Signatures
This Agreement is made in Newport Beach, California, and is dated as of and is signed by
Landlord and Broker as follows:
ACCEPTED AND AGREED BY:
Landlord: Broker:
By: ICM-JAE INVESTMENTS, LTD., ET. AL. _________________________________
a California limited partnership a licensed real estate brokerage company
as its General Partner
By: ICM-JAE INVESTMENTS LLC By:
a California limited liability company
as its Managing General Partner Agent:
Please print name
By:
JOSEPH A. ERICKSON
Manager
