Greene Lease Agreement
Greene Agreement to Keep Expenses
THIS AGREEMENT is executed on __________________, between
____________(APPLICANT”) and YOUR COMPANY NAME.Whereas the
APPLICANT desires and YOUR COMPANY NAME agrees to seek lease financing for certain personal property selected by APPLICANT:
1. APPLICANT, as an inducement to YOUR COMPANY NAME to seek lease financing on its behalf, shall submit documents and other information to enable YOUR COMPANY NAME to procure or provide said financing.
2. APPLICANT, in consideration of the promises of YOUR COMPANY NAME herein, shall pay to YOUR COMPANY NAME the sum of $_____________ together with the execution of this agreement. All or part of this payment shall be retained by YOUR COMPANY NAME, whether or not such financing is provided or procured, as compensation for its out of pocket costs including, without limitation, the following estimated charges;
CREDIT COSTS $
DUN AND BRADSTREET $
TIME AND EFFORT: $
3. [OPTIONAL] Should YOUR COMPANY NAME provide or procure lease financing for APPLICANT, the fee referenced herein shall be applied towards any advance payments required pursuant to the contract or contracts setting forth the terms of said lease financing.
4. In the event of a dispute pertaining to or arising out of this agreement, APPLICANT and YOUR COMPANY NAME agree that the matter will be submitted to binding arbitration utilizing the services of a neutral and competent arbitrator agreed to by both parties. In the event the parties are unable to agree upon an arbitrator, any claim or dispute hereunder shall be resolved in YOUR STATE in accordance with the Commercial Arbitration Rules of the American Arbitration Association before a panel of three (3) arbitrators, one appointed by APPLICANT, one appointed by YOUR COMPANY NAME, and the third appointed by said Association. The decision or award of the agreed upon arbitrator, or in the case of a three arbitrator panel, the majority of the arbitrators, shall be final and binding upon the parties and may be entered as a judgment or order in any court of competent jurisdiction.
[YOUR COMPANY NAME] [ APPLICANT ]
Engagement Letter Agreements
Ten sponsors paid $200 each to employ attorney Ken Greene to create a letter which basically spells out what can be kept if a lease application does not move forward and fund.
522 1/2 Broadway Street
The instructions to Ken was to basically make it “simple” and keep to one page. It is a template format to join the other Letters of Engagement section on Leasing News.
The agreement was not only reviewed by the sponsors, but by approximately thirty attorneys, mostly who specialized in leasing, and two California superior court judges. It took some time for the review, to say the least.
The bottom line, most had “no comment.” There were several suggestions. In addition, most were like
“We tend to customize agreements for each deal, starting with a broker's form in many cases. The business deal dictates who keeps the bucks in a busted deal.”
David G. Mayer
Author of Business Leasing For Dummies
There were several suggestions we did not adopt, not because they did not have validity, but would expand the concept to a second page. We realize this document could not be represented as “tested,” as it is not, plus different states have different laws regarding “deposits” and “advance rentals.” Such things as adding that the expenses would not incur interest if included in the advance rental, if it went forward, appeared that it had value, but we realized that in arbitration or any formal dispute, it could be addressed at that time, if necessary.
We also assumed that receipts for expenses would be required in any court of law or arbitration, and bringing this up to present to the applicant at this time, would complicate matters. Adding a phrase of “ up to” or “not to exceed” we thought should be the decision of the user, and their legal counsel.
In addition, there are other commitment letters that contain the other suggested provisions in the collection of Letters of Engagement. This was specifically designed to help spell out an agreement to keep expenses incurred in processing an application when the lease does not fund.
We very much appreciate the time put in by those who sent us their comments and suggestions.
By the way, those that made a comment were quite complimentary of Ken Greene efforts, such as from
“Since you sent it to 15 different lawyers you are going to get 27 different responses and/or improvements. (We originally started with 15.)
“For what it is intended to be and within the guidelines as outlined it is a good starting point. The key is that everyone knows that it will be modified on a deal by deal basis.
“ Ken has done a good job in coming up with this template.”
“This is a good, basic form to which address a basic, bottom-line situation which frequently arises in our industry. It obviously is to be used as a starting point, because every transaction requires individual scrutiny and draftsmanship.
“Being able to keep this form to a single page is a big advantage. An excellent effort by Ken Greene.”
James E. Coston
We advise that any document you would like to utilize that you review with your own legal counsel first. It may save you a lot of money in the long run.