OPEN LISTING: L.B. Stone Properties Group (“LBS”) offers an Open Listing to all brokers for a number of properties under LBS management and ownership. LBS desires to work with all licensed real estate brokers in regards to its available properties. Subject to the terms and conditions, LBS will pay a commission to any broker whose direct services result in the lease and subsequent occupancy of an LBS property.
LBS reserves the right to withdraw any property from the market. LBS reserves the right to directly negotiate with and solicit unregistered prospective tenants. LBS may refuse to lease to any prospective tenant for any lawful reason which it believes sufficient.
REGISTRATION OF PROSPECTIVE TENANTS: To become eligible to receive a commission for any lease, a broker must complete and deliver the attached registration form with respect to such prospective tenant. Each registration form must be signed by both the prospective tenant and the broker. The written acceptance of a registration form by LBS will establish an open, nonexclusive listing between LBS and the broker for the lease of the property outlined in the registration form to the prospective tenant named in the registration. Any open listing established by acceptance of the registration form will be for a period of ninety (90) days from the date of LBS’s signature on such form. A registration may be extended for additional periods up to ninety (90) days by the broker’s submission and LBS’s approval of a new registration form.
If LBS receives an inquiry from a second, i.e. competing broker, to register the same prospective tenant with respect to the same property during the registration period of the original broker, LBS will reject such registration. Unless the prospective tenant has notified LBS in writing that it had cancelled its relationship with the previously registered broker, and has completed the competing broker’s registration, LBS will honor the registration that has been submitted first in time.
If a lease agreement has not been executed by a registered prospective tenant before the expiration of the registration period or before the termination of a broker’s representation of such prospective tenant, LBS will have no further obligation to that broker with respect to any subsequent lease to said prospective tenant. Upon such expiration or termination, LBS or a competing broker may negotiate with the prospective tenant named in the expired or cancelled registration to secure an acceptable lease.
CONDITIONS TO PAYMENT OF A COMMISSION: A broker will only be entitled to receive, and LBS will only be obligated to pay, a commission once all of the conditions of this commission policy have been satisfied and confirmed by LBS:
- The tenant and LBS have each executed and delivered a binding and enforceable lease agreement (the “lease”) for LBS property;
- The tenant has lawfully occupied the property and the base rent payments have commenced;
- The tenant has approved of any plans and specifications for any building or leasehold improvements, all conditions precedent to the tenant’s obligation to pay for any construction have been satisfied, and, if applicable, the amount of base rent to be paid by the tenant has been determined and agreed upon;
- All conditions precedent to the obligations of both parties under the lease have been satisfied (including, without limitation, the issuance and delivery of all required consents, notices, certificates of insurance, deposits, prepaid base rents and operating expenses, permits, corporate resolutions, guarantees, tenant utility accounts, and as applicable executed agreements for subordination, non-disturbance, attornment, and lease commencement date)
AMOUNT OF LEASE COMMISSION: For leases with defined Base Rent increases, the amount of the commission payable upon fulfillment of the above conditions related to a lease will be four percent (4%) of rents payable for the first sixty (60) months of the initial lease term, and two percent (2%) of the rents payable for that portion of the original lease term from the sixty-first (61st) month through the one hundred twentieth (120th) month. No commission will be payable for any portion of the lease term beyond one hundred twenty (120) months. For leases with Base Rent increases tied to Consumer Price Index (CPI) adjustments, LBS will pay Broker a commission calculated on three percent (3%) annual increases in Base Rent. Commission will be paid at the rate of 100% at tenant occupancy, under Net 30 day payment terms. When all conditions to payment of a commission have been completed, and provided that the tenant is not then in default of any of its lease terms and conditions, LBS will pay broker the earned commission. The foregoing commission schedule does not apply to new build-to-suit projects, as to which commissions are negotiable.
If the lease includes an option or options to renew and a renewal option is appropriately exercised, then, on or shortly after the thirty fifth (35th) day following commencement of the exercised renewal term, the broker may submit an application for payment of commission for the renewal term. Payment of a renewal term commission is contingent upon tenant’s payment of the first- and second-month’s rent for such renewal term and submission by broker of an invoice to LBS for commission due on such renewal term within ninety (90) days of its commencement (such commissions deemed waived if not timely invoiced). Subject to the above, LBS will pay a renewal term commission based on the following schedule:
- For leases where Base Rents are not tied to CPI adjustments, three percent (3%) of the Base Rents payable for the portion of such option term up to sixty (60) months from the initial commencement date of the lease (the original lease start date).
- One- and one-half percent (1.5%) of the Base Rents payable for the portion of such option term beginning with the sixty-first (61st) month to the one hundred twentieth (120th) month from the initial commencement date of the lease (the original lease start date).
In no event will commissions be paid for any rent payable for the original term and exercised option terms(s) exceeding one hundred twenty (120) months from the initial commencement date of the lease (the original lease start date). Nor will a commission be paid on the following:
- Any rent payable during any renewal option or any other extension of the original term beyond ten (10) years.
- Any rent payable as a result of tenant’s subsequent expansion;
- Any payment made by tenant to reimburse LBS for operating expenses, taxes, insurance or similar items, regardless of whether they are site-specific or pro rata with other tenants;
- Any payment made by tenant to LBS or a third party toward the cost of construction or renovation of the premises including reimbursement to LBS over an extended term;
- Any conditional rent escalation, (i.e. the amount not fixed in the lease) regardless of whether based on any type of index or tenant’s revenues, production, etc.;
- Any concession or inducement made at LBS’s expense in connection with the lease, including, without limitation, any rent concessions or abatements; to
- Any rent due to a third party which LBS agrees to pay or allow the tenant to offset, resulting from a lease or occupancy agreement the tenant has with another landlord, sometimes referred to as a “takeover agreement” or “lease buy out;” any tenant moving expenses paid by LBS and any unreimbursed expenses for tenant improvement will be deducted from the rent on which the commission is based.
BROKER’S AUTHORITY: Upon full execution of a registration form by the broker, the prospective tenant, and LBS, the broker is authorized to show and/or present the described LBS property, including improvements thereto, to the prospective tenant and may discuss rental rates, terms, and other conditions they believe would be appropriate. However, broker will have no authority to bind LBS to any rental rates, terms, or other lease conditions, nor authority to bind LBS to any agreement whatsoever.
RESOLUTION OF DISPUTES: In the event competing claims are made against LBS for all or any portion of a commission in connection with any lease, LBS may either: (a) defer payment until the competing claims have been resolved; (b) pay the amount of any commission due into an independently administered escrow pending final resolution of the competing claims; (c) decline to pay if not all conditions to payment have been satisfied; or (d) mediate under commercial arbitration rules of the American Arbitration Association. In no event will LBS be obligated to pay more than one commission for any lease or sale.