Managers Compensation Term Clause Samples

Managers Compensation Term. Management Fee: (a) The “Management Fee” or the “Base Fee” shall equal three percent (3%) of Gross Collections. The Base Fee shall begin accruing on the date of this Agreement and shall be payable in monthly installments for the prior calendar month (pro-rated for any partial calendar month). If, for any calendar year, the amount of the installments of the Base Fee paid to Manager shall be less than or more than the actual Base Fee payable for such year, based upon the final determination of Gross Collections for such year in the year-end statement, then, within fifteen (15) days after the delivery of such year-end statement to Owner, Manager shall withdraw from the operating accounts for the Apartments the net amount of any such underpayment or, if overpaid, pay into the operating accounts for the Apartments the net amount of overpayment. (b) The term “Gross Collections” shall mean all amounts actually collected as rents or other charges for use and occupancy of apartment units, leases of other non-dwelling facilities in the Project to tenants under Leases of the Apartments, and concessionaires (if any) in respect of the Apartments, including forfeited security deposits, application fees, late charges, income from coin operated machines, proceeds from rental interruption insurance, and other miscellaneous income collected with respect to the Apartments; but shall exclude all other receipts, including but not limited to, income derived from interest on investments or otherwise, proceeds of claims on account of insurance policies (other than rental interruptions insurance), abatement of taxes, amounts allocated by Manager that are attributable to services provided by Manager directly to tenants of the Apartments, awards arising out of eminent domain proceedings, and discounts and dividends on insurance policies. Manager shall take care that expenses of the Apartments are paid timely, so as to avoid late fees, interest and other penalties (“Penalties”). Manager shall be responsible for any Penalties incurred by reason of Manager’s negligent or other wrongful failure to make timely payments; provided, however, that Manager shall have no obligation to advance its own funds to make such payments.