Ok, here's what's I've found out. My local dealer won't touch it. Was not surprised as they are rip off artists from the word go anyway! They totally have the Lexus market cornered here in Northern VA. They even over charge for the parts. It's so bad I can buy them somewhere else, pay the shipping and still have money left over for a tank of gas and lunch to go with it. I'll be doing the mail order deal from here on out.
So I called the other dealer which is a good hour away. They were willing to do it, but if the fobs were no good I would still be paying up for the process.
Then I called my local Toyota dealer. He was on it like white on rice. Just need to give him a heads up on an appointment and he'll do the job. They use the same scan tool as Lexus does.
Seems the dealer wants it's cake and eat it too! Can't sell squat so why not make up the difference in the parts and service end is my guess.