Sample Business Contracts

Offer Letter - CoStar Realty Information Inc. and Michael Arabe

Employment Forms

Employment Contract. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
More Employment Agreements

CoStar Realty Information, Inc.
2 Bethesda Metro Center
Bethesda, MD 20814

DATE: January 2, 2003

TO: Michael Arabe
FROM: Andrew Florance

RE: Senior Vice-President of Sales & Customer Service Position

I am pleased to present the following offer to you with CoStar Realty Information, Inc. ("CoStar") per our discussions recently:


Position Title:		Senior Vice-President of Sales & Customer Service

Location:		Bethesda, Maryland

Effective Date:		January 2, 2003

Salary:		$124,800


Incentive Stock Options:		Management will recommend you for 25,000 stock options (the "Options") in CoStar Group, Inc., vesting one fourth on the first anniversary of the Effective Date, one fourth on the second anniversary of the Effective Date, one fourth on the third anniversary, and one fourth on the fourth anniversary of the Effective Date. The availability of these Options is subject to Board approval. The exercise price for the Options shall be the fair market value of the CoStar Group common stock on the Effective Date.

Bonus Potential Amount:		You shall be entitled to earn a potential bonus of up to three times your base salary, payable quarterly as determined by the Chief Executive Officer of CoStar and based on any goals set by the Chief Executive Officer.

Previous Bonus Plan(s):		This bonus plan will replace your previous incentive plan(s), effective with the 2003 calendar year. Your bonus plan currently in effect shall continue for calendar year 2002.

Eligibility:		You must be employed on the last day of the period in which the bonus is earned in order to receive the bonus payout. If you should leave CoStar or no longer be eligible for this bonus plan due to a position change, no pro-rated payments will be available.


Continuation of At-Will Employment Status:		Please note that this letter, and the Terms and Conditions of Employment contain all of the terms, promises, representations and understandings between you and CoStar with respect to your employment with CoStar (or any of its affiliates or their respective successors, assigns and predecessors) and supercede any employment agreements or arrangements (other than any indemnification agreements, if applicable) in effect between you and CoStar (or any of its affiliates and their respective successors, assigns and predecessors). Your employment with CoStar remains at-will, and your employment with CoStar is not for any specified duration of time.

Acceptance:		Please sign this letter indicating your acceptance and return the original copy to me.

Thank you for your hard work so far and for your continued excellence and leadership in the future.

Agreed to and accepted by:

/s/

Michael Arabe