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.
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