Document:

Exhibit 10.36

 

Oliver Real Estate Commercial

1400 S. Colorado Blvd, # 410

Denver, CO 80222

tomyoliver@earthlink.net

Phone: (303) 691-0179

Fax: (303) 757-7275

 

 

The printed portions of this form, except differentiated additions, have been approved by
the Colorado Real Estate Commission. CBSI-10-06 (Mandatory 1-07)

 

THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND
THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING.

 

CONTRACT
TO BUY AND SELL REAL ESTATE

(ALL TYPES
OF PROPERTIES) 

 

	
   

  	
   

  	
  Date:

  	
   

  	
  November 26, 2007

  
	
   

  	
   

  	
  Purchase Price:

  	
   

  	
  $5,460,000.00

  

 

1.                                      AGREEMENT. Buyer agrees to buy,
and Seller agrees to sell, the Property defined below on the terms and conditions set
forth in this contract (Contract).

 

2.                                      DEFINED TERMS.

 

a.             Buyer. Buyer,  Ascent Solar Technologies, Inc. &/or  assigns, will take title to
the real property described below as  o Joint Tenants      o Tenants In Common      x Other Buyer entity to be
determined and assigned prior to Closing.

 

b.               Property. The Property is the following legally
described real estate in the County of Adams, Colorado:  SUB: WASHINGTON SQUARE
AMENDED BLK:7 LOT:4

 

known as No.

 

	
  12300 Grant Street

  	
   

  	
  Thornton

  	
   

  	
  CO

  	
   

  	
  80241

  
	
  Street Address

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Zip

  

 

together with the interests, easements, rights,
benefits, improvements and attached fixtures appurtenant thereto, all interest
of Seller in vacated streets and alleys adjacent thereto, except as herein
excluded.

 

c.          Dates and Deadlines.

 

	
  Item No.

  	
   

  	
  Reference

  	
   

  	
  Event

  	
   

  	
  Date or Deadline

  
	
  1

  	
   

  	
  § 4a

  	
   

  	
  Alternative Earnest Money Deadline

  	
   

  	
  3 business days after MEC

  
	
  2

  	
   

  	
  § 5a

  	
   

  	
  Loan Application Deadline

  	
   

  	
  N/A

  
	
  3

  	
   

  	
  § 5b

  	
   

  	
  Loan Conditions Deadline

  	
   

  	
  N/A

  
	
  4

  	
   

  	
  § 5c

  	
   

  	
  Buyer’s Credit Information Deadline

  	
   

  	
  N/A

  
	
  5

  	
   

  	
  § 5c

  	
   

  	
  Disapproval of Buyer’s Credit Information Deadline

  	
   

  	
  N/A

  
	
  6

  	
   

  	
  § 5d

  	
   

  	
  Existing Loan Documents Deadline

  	
   

  	
  N/A

  
	
  7

  	
   

  	
  § 5d

  	
   

  	
  Existing Loan Documents Objection Deadline

  	
   

  	
  N/A

  
	
  8

  	
   

  	
  § 5d

  	
   

  	
  Loan Transfer Approval Deadline

  	
   

  	
  N/A

  
	
  9

  	
   

  	
  § 6a

  	
   

  	
  Appraisal Deadline

  	
   

  	
  N/A

  
	
  10

  	
   

  	
  § 7a

  	
   

  	
  Title Deadline

  	
   

  	
  10 days after MEC

  
	
  11

  	
   

  	
  § 8a

  	
   

  	
  Title Objection Deadline

  	
   

  	
  30 days after MEC

  
	
  12

  	
   

  	
  § 7c

  	
   

  	
  Survey Deadline

  	
   

  	
  30 days after MEC

  
	
  13

  	
   

  	
  § 8c(2)

  	
   

  	
  Survey Objection Deadline

  	
   

  	
  35 days after MEC

  
	
  14

  	
   

  	
  § 7b

  	
   

  	
  Document Request Deadline

  	
   

  	
  N/A

  
	
  15

  	
   

  	
  § 7d(5)

  	
   

  	
  CIC Documents Objection Deadline

  	
   

  	
  N/A

  
	
  16

  	
   

  	
  § 8b

  	
   

  	
  Off-Record Matters Deadline

  	
   

  	
  10 days after MEC

  

 

1

 

	
  17

  	
   

  	
  § 8b

  	
   

  	
  Off-Record Matters Objection Deadline

  	
   

  	
  35 days after MEC

  
	
  18

  	
   

  	
  § 8f

  	
   

  	
  Right Of First Refusal Deadline

  	
   

  	
  10 days after MEC

  
	
  19

  	
   

  	
  § 10a

  	
   

  	
  Seller’s Property Disclosure Deadline

  	
   

  	
  N/A

  
	
  20

  	
   

  	
  § 10b

  	
   

  	
  Inspection Objection Deadline

  	
   

  	
  55 days after MEC

  
	
  21

  	
   

  	
  § 10c

  	
   

  	
  Resolution Deadline

  	
   

  	
  60 days after MEC

  
	
  22

  	
   

  	
  § 10d

  	
   

  	
  Property Insurance Objection Deadline

  	
   

  	
  30 days after MEC

  
	
  23

  	
   

  	
  § 12

  	
   

  	
  Closing Date

  	
   

  	
  see 25. c

  
	
  24

  	
   

  	
  § 17

  	
   

  	
  Possession Date

  	
   

  	
  at Closing

  
	
  25

  	
   

  	
  § 17

  	
   

  	
  Possession Time

  	
   

  	
  at Closing

  
	
  26

  	
   

  	
  § 29

  	
   

  	
  Acceptance Deadline Date

  	
   

  	
  November 28, 2007

  
	
  27

  	
   

  	
  § 29

  	
   

  	
  Acceptance Deadline Time

  	
   

  	
  6:00pm

  

 

d.                    Attachments. The following are a
part of this Contract: Exhibit A

 

Note: The following disclosure forms are attached
but are not a part of this Contract: none

 

e.                    Applicability of Terms. A check or similar
mark in a box means that such provision is applicable. The abbreviation “N/A”
or the word “Deleted” means not applicable and when inserted on any line in
Dates and Deadlines (§2c), it means that the corresponding provision of the
Contract to which reference is made is deleted. The abbreviation “MEC” (mutual
execution of this Contract) means the latest date upon which both parties have
signed this Contract.

 

3.                                      INCLUSIONS AND EXCLUSIONS.

 

a.             Inclusions. The Purchase Price includes the following
items (Inclusions):

 

(1)   Fixtures. If attached to the
Property on the date of this Contract, lighting, heating, plumbing,
ventilating, and air conditioning fixtures, TV antennas, inside telephone
wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom
systems, built-in kitchen appliances, sprinkler systems and controls, built-in
vacuum systems (including
accessories), garage door openers including  -0-
remote controls; and o  none.

 

(2)   Personal Property. The following are
included if on the Property whether attached or not on the date of this
Contract: storm windows, storm doors, window and porch shades, awnings, blinds,
screens, window coverings, curtain rods, drapery rods, fireplace inserts,
fireplace screens, fireplace grates, heating stoves, storage sheds, and
all keys. If checked, the following are included: o
Water Softeners           x  Smoke/Fire Detectors    x
Security Systems        o Satellite
Systems (including satellite dishes).

 

(3)   Other Inclusions. none

 

The Personal Property to be conveyed at Closing
shall be conveyed, by Seller, free and clear of all taxes, (except personal
property taxes for the year of Closing), liens and encumbrances, except none. Conveyance shall be by bill of sale
or other applicable legal instrument.

 

(4)        Trade Fixtures. With respect to trade fixtures, Seller and
Buyer agree as follows: none.

 

The Trade Fixtures to be conveyed at Closing
shall be conveyed, by Seller, free and clear of all taxes, (except personal
property taxes for the year of Closing), liens and encumbrances, except N/A.  Conveyance shall be by bill of sale or other
applicable legal instrument.

 

(5)        Parking and Storage Facilities. o  Use Only       o  Ownership of the following parking facilities:
none; and the following storage
facilities: none.

 

(6)        Water Rights. The following legally described water rights:
none.

 

Any water rights shall be conveyed by       deed or
other applicable legal instrument. The Well Permit # is     .

 

(7)        Growing Crops. With respect to
growing crops, Seller and Buyer agree as follows: N/A

 

b.             Exclusions. The following items are excluded: none.

 

4.                                      PURCHASE PRICE AND TERMS. The Purchase Price
set forth below shall be payable in U. S. Dollars by Buyer as follows:

 

2

 

	
  Item
  No.

  	
   

  	
  Reference

  	
   

  	
  Item

  	
   

  	
  Amount

  	
   

  	
  Amount

  
	
  1

  	
   

  	
  § 4

  	
   

  	
  Purchase Price

  	
   

  	
  $

  	
  5,460,000

  	
   

  	
   

  
	
  2

  	
   

  	
  § 4a

  	
   

  	
  Earnest Money

  	
   

  	
   

  	
   

  	
  $

  	
  100,000 plus

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  150,000 see 25 a

  
	
  3

  	
   

  	
  § 4d(1)

  	
   

  	
  New First Loan

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  § 4d(2)

  	
   

  	
  New Second Loan

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  § 4e

  	
   

  	
  Assumption Balance

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  § 4f

  	
   

  	
  Seller or Private Financing

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  § 4b

  	
   

  	
  Cash at Closing

  	
   

  	
   

  	
   

  	
  5,210,000

  
	
  10

  	
   

  	
   

  	
   

  	
  TOTAL

  	
   

  	
  $

  	
  5,460,000

  	
   

  	
  $

  	
  5,460,000

  
												

 

Note: If there is an inconsistency between the
Purchase Price on the first page and this § 4, the amount in § 4 shall
control.

 

a.   Earnest
Money. The Earnest Money set forth in this section, in the form of company check, is part payment of
the Purchase Price and shall be payable to and held by Land Title Guarantee Company (Earnest Money
Holder), in its trust account, on behalf of both Seller and Buyer. The Earnest
Money deposit shall be tendered with this Contract unless the parties mutually
agree to an Alternative Earnest Money Deadline (§ 2c) for its payment. The
parties authorize delivery of the Earnest Money deposit to the closing company,
if any, at or before Closing. In the event Earnest Money Holder has agreed to have
interest on earnest money deposits transferred to a fund established for the
purpose of providing affordable housing to Colorado residents, Seller and Buyer
acknowledge and agree that any interest accruing on the Earnest Money deposited
with the Earnest  Money Holder in
this transaction shall be transferred to such fund.

 

b.   Cash at
Closing. All amounts paid by Buyer at Closing including Cash at Closing, plus
Buyer’s closing costs, shall be in funds which comply with all applicable
Colorado laws, which include cash, electronic transfer funds, certified check,
savings and loan teller’s check and cashier’s check (Good Funds).

 

c.   Down Payment
Assistance; Seller Paid Costs. Seller, at Closing, shall credit $N/A to Buyer to assist with Buyer’s
down payment. Seller shall also, at Closing, credit to Buyer the amount of $ N/A  to assist with Buyer’s closing
costs, not to exceed the amount due from Buyer for such costs. These amounts are in addition to
any sum Seller has agreed to pay or credit Buyer elsewhere in this Contract.

 

d.   New Loan.

 

(1) New First Loan. Buyer shall obtain
a new loan set forth in this section as follows: 

o Conventional         o FHA         o  VA         o Other.

 

This loan will be secured by a    (1st,
2nd, etc.) deed of trust.

 

The loan may be increased to add the cost of
mortgage insurance, VA funding fee and other items for a total loan amount, not in
excess of
$  , shall be amortized over a period of    o Years   o  Months at approximately $   per
including principal and interest not to exceed   % per annum, plus,
if required by Buyer’s lender, a deposit of    of the estimated
annual real estate taxes, property insurance premium, and mortgage insurance
premium. If the loan is an adjustable interest rate or graduated payment
loan, the payments and interest rate initially shall not exceed the figures set
forth above.

 

Loan discount points, if
any, shall be paid to lender at Closing and shall not exceed   % of the total
loan amount. Notwithstanding the loan’s interest rate, the first    loan
discount points shall be paid by  , and
the balance, if any, shall be paid by  .

 

Buyer shall timely pay
Buyer’s loan costs and a loan origination fee not to exceed   % of
the loan amount. If the loan is an FHA/VA insured or guaranteed loan, Seller
shall pay closing costs and fees that Buyer is not allowed by law to pay, in an
amount not to exceed $   for only the following items: tax service
and .

 

(2) New
Second Loan. Buyer shall obtain a new loan set forth in this section
as follows:

 

This loan will be secured by a    (2nd,
etc.) deed of trust.

 

The total loan amount, not in excess of $  ,
shall be amortized over a period of    o  Years   o  Months at approximately $  
per   including principal and interest not to exceed   %
per annum. If the loan is an adjustable interest rate or graduated payment
loan, the payments and interest rate initially shall not exceed the figures set
forth above.

 

Loan discount points, if
any, shall be paid to lender at Closing and shall not exceed   % of
the total loan amount. Notwithstanding the loan’s interest rate, the first   
loan discount points shall be paid by  , and the balance, if any,
shall be paid by  .

 

Buyer shall timely pay Buyer’s loan
costs and a loan origination fee not to exceed   % of the loan
amount.

 

e.          Assumption. [Omitted as Inapplicable]

 

f.            Seller or Private Financing.
[Omitted as Inapplicable]

 

5.                                      FINANCING CONDITIONS AND
OBLIGATIONS.

 

a.   Loan
Application. If Buyer is to pay all or part of the Purchase Price
by obtaining a new loan, or if an existing loan is not to be released at
Closing, Buyer, if required by such lender, shall make a verifiable application
by

 

3

 

Loan Application Deadline (§ 2c). Buyer shall cooperate with Seller and
lender to obtain loan approval, DILIGENTLY AND TIMELY PURSUE SAME IN GOOD FAITH, execute all documents and
furnish all information and documents required by lender, and, subject to § 4d(1) and
(2) and § 4e, timely pay the costs of obtaining such loan or lender
consent. Buyer agrees to satisfy the reasonable requirements of lender, and
shall not withdraw the loan or assumption application, nor intentionally cause
any change in circumstances that would prejudice lender’s approval of the loan
application or funding of the loan. Buyer may obtain different financing
provided Seller incurs no additional delay, cost or expense, and provided Buyer
is approved for such substitute loan.

 

b.   Loan
Conditions. If Buyer is to pay all or part of the Purchase Price
by obtaining a new loan as specified in § 4d, this Contract is conditional upon
Buyer’s approval of the availability, terms, conditions and cost for the new
loan. This condition is for the benefit of Buyer and shall be deemed waived
unless Seller receives from Buyer, no later than Loan Conditions Deadline (§ 2c), written notice of Buyer’s
election to terminate this Contract as such loan was not satisfactory to Buyer.
Buyer shall not have the right to terminate under this § 5b for any loan that
is the same as set forth in § 4. If Buyer so notifies Seller, this Contract
shall terminate. IF SELLER DOES NOT RECEIVE
WRITTEN NOTICE TO TERMINATE AND BUYER DOES NOT CLOSE, BUYER SHALL BE IN
DEFAULT.

 

c.   Credit
Information and Buyer’s New Senior Loan. [Omitted as Inapplicable]

 

d.   Existing
Loan Review. [Omitted as Inapplicable]

 

6.                                      APPRAISAL PROVISIONS.

 

a. Appraisal Condition.

 

x                                                                                  (1)  No Appraisal
Condition. This § 6a. shall not apply.

 

o                                                                                    (2)  Conventional.
Buyer
shall have the sole option and election to terminate this Contract if the
Purchase Price exceeds the Property’s valuation determined by an appraiser
engaged by  . This Contract shall
terminate by Buyer giving Seller written notice of termination and either a
copy of such appraisal or written notice from lender that confirms the Property’s
valuation is less than the Purchase Price, received on or before Appraisal Deadline (§ 2c). If
Seller does not receive such written notice of termination on or before Appraisal Deadline (§ 2c), Buyer waives any right to terminate
under this subsection.

 

o                                                                                    (3)  FHA. It is
expressly agreed that, notwithstanding any other provisions of this Contract,
the Purchaser (Buyer) shall not be obligated to complete the purchase of the
Property described herein or to incur any penalty by forfeiture of Earnest Money
deposits or otherwise unless the Purchaser (Buyer) has been given in accordance with HUD/FHA or VA requirements a written statement
by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement
lender, setting forth the appraised value of the Property of not less than $  . The Purchaser
(Buyer) shall have the privilege and option of proceeding with consummation of the
Contract
without regard to the amount of the appraised valuation. The appraised
valuation is arrived at to determine the maximum mortgage the Department of
Housing and Urban Development will insure. HUD does not warrant the value or
the condition of the Property. The Purchaser (Buyer) should satisfy himself/herself that the
price and condition of the Property are acceptable.

 

o                                                                                    (4)  VA. It is expressly agreed that, notwithstanding any other
provisions of this Contract, the purchaser (Buyer)
shall not incur any penalty by forfeiture of Earnest Money or otherwise be obligated to
complete the purchase of the Property described herein, if the Contract Purchase
Price or cost exceeds the reasonable value of the Property established by the Department of Veterans
Affairs. The purchaser (Buyer) shall, however, have the privilege and
option of proceeding with the consummation of this Contract without regard to
the amount of the reasonable value established by the Department of Veterans
Affairs.

 

b. Cost of Appraisal. Cost of any appraisal to be obtained after
the date of this Contract shall be timely paid by o Buyer o Seller.

 

7.                                      EVIDENCE OF TITLE.

 

a.  Evidence of
Title. On or before Title
Deadline (§ 2c), Seller shall cause to be furnished to Buyer, at Seller’s expense,
a current commitment for owner’s
title insurance policy (Title
Commitment) in an amount equal to the Purchase Price, or if this box is
checked, o  An
Abstract of title certified to a current date. At Seller’s expense,
Seller shall cause the title insurance policy to be issued and delivered to
Buyer as
soon
as practicable at or after Closing. If a title insurance commitment is
furnished, it x  Shall
   o  Shall Not
commit to delete or insure over the standard exceptions which relate to:

 

(1)  parties
in possession,

(2)  unrecorded
easements,

(3)  survey
matters,

(4)  any
unrecorded mechanic’s liens,

(5)  gap
period (effective date of commitment to date deed is recorded), and

(6)  unpaid
taxes, assessments and unredeemed tax sales prior to the year of Closing.

 

Any additional premium expense to obtain this
additional coverage shall be paid by x Buyer      o Seller.

 

4

 

b.  Copies of
Exceptions. On or before Title
Deadline (§ 2c), Seller, at Seller’s expense, shall furnish to Buyer
and Buyer’s
Agent, (1) a copy of any plats, declarations, covenants, conditions and  restrictions
burdening the Property, and (2) if a title insurance commitment is
required to be furnished, and if this box is checked x Copies of any Other
Documents (or, if illegible, summaries of such documents) listed in the schedule of
exceptions (Exceptions). Even if the box is not checked, Seller shall have the
obligation to furnish these documents pursuant to this section if requested by
Buyer any time on or before Document Request
Deadline (§ 2c). This requirement shall pertain only to documents as
shown of record in the offices of the clerk and recorder in the county where
the Property is located. The abstract or title insurance commitment, together
with any copies or summaries of such documents furnished pursuant to this
section, constitute the title documents (Title Documents).

 

c.  Survey. On or before Survey Deadline (§ 2c) x  Seller          o  Buyer shall cause Buyer (and the issuer of
the Title Commitment or the provider of the opinion of title if an abstract) to
receive a current o  Improvement
Survey Plat o Improvement Location Certificate      x ALTA/ASCM survey, see 25. b (the description
checked is known as Survey). An amount not to exceed $2,000 for Survey shall be
paid by o  Buyer x  Seller. If the cost exceeds this amount, o  Buyer x Seller shall pay the excess on or before Closing unless
Buyer delivers to Seller before Survey is ordered, Buyer’s written notice
allowing the exception for survey matters.

 

d. Common Interest Community Documents.

 

x                                                                                  (1) Not Applicable. This § 7d. shall
not apply.

 

(2) Common Interest Community Disclosure. THE PROPERTY IS
LOCATED WITHIN A COMMON INTEREST COMMUNITY AND IS SUBJECT TO THE DECLARATION
FOR SUCH COMMUNITY. THE OWNER OF THE PROPERTY WILL BE REQUIRED TO BE A MEMBER
OF THE OWNER’S ASSOCIATION FOR THE COMMUNITY AND WILL BE SUBJECT TO THE BYLAWS
AND RULES AND REGULATIONS OF THE ASSOCIATION. THE DECLARATION, BYLAWS, AND
RULES AND REGULATIONS WILL IMPOSE FINANCIAL OBLIGATIONS UPON THE OWNER OF THE
PROPERTY, INCLUDING AN OBLIGATION TO PAY ASSESSMENTS OF THE ASSOCIATION. IF THE
OWNER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD PLACE A LIEN ON THE
PROPERTY AND POSSIBLY SELL IT TO PAY THE DEBT. THE DECLARATION, BYLAWS, AND
RULES AND REGULATIONS OF THE COMMUNITY MAY PROHIBIT THE OWNER  FROM MAKING CHANGES
TO THE PROPERTY WITHOUT AN ARCHITECTURAL REVIEW BY THE ASSOCIATION (OR A
COMMITTEE OF THE ASSOCIATION) AND THE APPROVAL OF THE ASSOCIATION. PURCHASERS
OF PROPERTY WITHIN THE COMMON INTEREST COMMUNITY SHOULD INVESTIGATE THE
FINANCIAL OBLIGATIONS OF MEMBERS OF THE ASSOCIATION. PURCHASERS SHOULD
CAREFULLY READ THE DECLARATION FOR THE COMMUNITY AND THE BYLAWS AND RULES AND REGULATIONS OF
THE ASSOCIATION.

 

o                                                                                    (3) Not Conditional on Review. Buyer acknowledges
that Buyer has received  a copy of the owner’s
association declarations, bylaws, rules and regulations, party wall agreements, minutes
of most recent annual owners’ meeting and minutes of any directors’ meetings
during the 6-month period immediately preceding Title Deadline, if any (Governing
Documents), most recent financial documents consisting of (a) annual
balance sheet, (b) annual income and expenditures statement, and (c) annual budget (Financial
Documents), if any (collectively CIC Documents). Buyer has reviewed them, agrees to
accept the benefits, obligations and restrictions that they impose upon the Property and its owners and waives
any right to terminate this Contract due to such documents, notwithstanding the
provisions of § 8e.

 

(4) CIC Documents to Buyer.

 

o                                                                                                                                    (a) Seller to Provide
CIC Documents. Seller shall cause the CIC Documents to be provided to Buyer, at Seller’s
Expense, on or before Title Deadline (§ 2c).

 

o                                                                                                                                    (b) Seller Authorizes
Association. Seller authorizes the owners’ association to provide the C1C Documents to
Buyer, at Seller’s expense.

 

(c) Seller’s Obligation. Seller’s obligation
to provide the CIC Documents shall be fulfilled upon Buyer’s receipt of the CIC
Documents, regardless of who provides such documents.

 

(5) Conditional on Buyer’s Review. If the box in
either subsection 7d(4)(a) or subsection 7d(4)(b) is checked, the provisions of this subsection 7d(5) shall
apply. Written notice  of any
unsatisfactory provision in any of the CIC Documents, in Buyer’s subjective
discretion, signed by Buyer, or on behalf of Buyer, and delivered to Seller on
or before CIC Documents Objection Deadline
(§ 2c), shall terminate this Contract.

 

Should Buyer receive the CIC Documents after Title Deadline (§ 2c), Buyer shall have the
right, at  Buyer’s option, to
terminate this Contract by written notice delivered to Seller on or before ten
calendar days after Buyer’s receipt of the CIC Documents. If Buyer does not
receive the CIC Documents, or if such written notice to terminate would
otherwise be required to be delivered after the Closing Date, Buyer’s written
notice to terminate shall be
received by Seller on or before three calendar days prior to Closing Date (§ 2c). If Seller does not
receive written notice from Buyer

 

5

 

within such time, Buyer accepts the provisions of
the CIC Documents, and Buyer’s right to terminate this Contract pursuant to
this subsection is waived, notwithstanding the provisions of § 8e.

 

NOTE: If no box in this § 7d is checked, the provisions of
subsection 7d(4)(a) shall apply.

 

8.                                      TITLE AND SURVEY REVIEW.

 

a.   Title
Review. Buyer shall have the right to inspect the Title Documents.  Written notice by Buyer of unmerchantability
of title, form or content of Title Commitment or of any other unsatisfactory
title condition shown by the Title Documents, notwithstanding § 13, shall be
signed by or on behalf of Buyer and given to Seller on or before Title Objection Deadline (§ 2c), or within
five calendar days after receipt by Buyer of any change to the Title Documents
or endorsement to the Title Commitment together with a copy of the document
adding any new Exception to title.  If Seller
does not receive Buyer’s notice by the date specified above, Buyer accepts the
condition of title as disclosed by the Title Documents as satisfactory.

 

b.   Matters not
Shown by the Public Records. Seller shall deliver to Buyer, on or before Off-Record Matters Deadline (§ 2c)
true copies of all leases and surveys in Seller’s possession pertaining to the
Property and shall disclose to Buyer all easements, liens (including, without
limitation, governmental improvements approved, but not yet installed) or other
title matters (including, without limitation, rights of first refusal, and
options) not shown by the public records of which Seller has actual knowledge.
Buyer shall have the right to inspect the Property to determine if any third
party has any right in the Property not shown by the public records (such as an
unrecorded easement, unrecorded lease, or boundary line discrepancy). Written
notice of any unsatisfactory condition disclosed by Seller or revealed by such
inspection, notwithstanding § 13, shall be signed by or on behalf of Buyer and
given to Seller on or before Off-Record
Matters Objection Deadline (§ 2c). If Seller does not receive Buyer’s
notice by said date, Buyer accepts title subject to such rights, if any, of
third parties of which Buyer has actual knowledge.

 

c.   Survey
Review.

 

o                            (1) Not Applicable. This § 8c shall not
apply.

 

x                           (2) Conditional
on Survey. If the box in this subsection 8c(2) is checked, Buyer shall have the
right to inspect the Survey. If written notice by or on behalf of Buyer of any
unsatisfactory condition shown by the Survey, notwithstanding § 8b or §
13, is received by Seller on or before Survey
Objection Deadline (§ 2c) then such objection shall be deemed an unsatisfactory
title condition. If Seller does not receive Buyer’s notice by Survey Objection Deadline (§ 2c), Buyer
accepts the Survey as satisfactory.

 

d.   Special
Taxing Districts. SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO
GENERAL OBLIGATION INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL
TAX LEVIES ON THE TAXABLE PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN
SUCH DISTRICTS MAY BE PLACED AT RISK FOR INCREASED MILL LEVIES AND EXCESSIVE
TAX BURDENS TO SUPPORT THE SERVICING OF SUCH DEBT WHERE CIRCUMSTANCES ARISE RESULTING IN THE
INABILITY OF SUCH A DISTRICT TO DISCHARGE SUCH INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL
LEVIES. BUYER SHOULD INVESTIGATE THE DEBT FINANCING REQUIREMENTS OF THE
AUTHORIZED GENERAL OBLIGATION INDEBTEDNESS OF SUCH DISTRICTS, EXISTING MILL
LEVIES OF SUCH DISTRICT SERVICING SUCH INDEBTEDNESS, AND THE POTENTIAL FOR AN  INCREASE IN SUCH
MILL LEVIES.

 

In the event the Property is located within a
special taxing district and Buyer desires to terminate this Contract as a
result, if written notice, by or on behalf of Buyer, is received by Seller on
or before Off-Record Matters Objection
Deadline (§ 2c), this Contract shall terminate. If Seller does not receive Buyer’s notice by such
date, Buyer accepts the effect of the Property’s inclusion in such special taxing district and
waives the right to terminate for that reason.

 

e.   Right to
Object, Cure. Buyer’s right to object shall include, but not be limited to
those matters listed in § 13. If Seller receives notice of unmerchantability of
title or
any other
unsatisfactory title condition or commitment terms as provided in subsections §§
8a, b, c and d above, Seller shall use reasonable efforts to correct said items
and
bear any nominal expense to correct the same prior to Closing. If such
unsatisfactory title condition is not corrected to Buyer’s satisfaction on or before Closing, this Contract shall
terminate; provided, however, Buyer may, by written notice received by Seller
on or before Closing, waive objection to such items.

 

f.    Right of
First Refusal or Approval. If there is a right of first refusal on the
Property, or a right to approve this Contract, Seller shall promptly
submit this Contract according to the terms and conditions of such right. If
the holder of the right of first refusal exercises such
right or the holder of a right to approve disapproves this Contract, this Contract
shall terminate. If the right of first refusal is waived explicitly or expires,
or the Contract is approved, this Contract shall remain in full force and effect.
Seller shall promptly notify Buyer of the foregoing. If expiration or waiver of
the right of first refusal or Contract approval has not occurred on or before
the Right of First Refusal Deadline
(§ 2c), this Contract shall terminate.

 

g.   Title
Advisory. The Title Documents affect the title, ownership and use of the Property
and should be reviewed carefully. Additionally, other matters not reflected in
the Title Documents may affect the title, ownership and use of the Property, including without limitation boundary
lines and encroachments, area, zoning, unrecorded easements

 

6

 

and claims of casements, leases and other
unrecorded agreements, and various laws and governmental regulations concerning
land use, development and environmental matters. The surface estate may be owned separately from the underlying mineral
estate, and transfer of the surface estate does not necessarily include
transfer of the mineral rights. Third parties may hold interests in oil, gas,
other minerals, geothermal energy or water on or under the Property, which
interests may give them rights to enter and use the Property. Such
matters may be excluded from the title insurance policy. Buyer is advised to
timely consult legal counsel with respect to all such matters as there are
strict time limits provided in this Contract (e.g., Title Objection Deadline [§
2c] and Off-Record Matters Objection Deadline [§ 2c]).

 

9.                                      LEAD-BASED PAINT. Unless exempt, if
the improvements on the Property include one or more residential dwellings for
which a building permit was issued prior to January 1, 1978, this Contract
shall be void unless a completed Lead-Based Paint Disclosure (Sales) form is
signed by Seller and the required real estate licensees, which must occur prior
to the parties signing this Contract. Buyer acknowledges timely receipt of a
completed Lead-Based Paint Disclosure (Sales) form signed by Seller and the
real estate licensees.

 

10.                               PROPERTY DISCLOSURE,
INSPECTION, INSURABILITY; BUYER DISCLOSURE.

 

a. Seller’s Property Disclosure Deadline. On or before Seller’s
Property Disclosure Deadline (§ 2c), Seller agrees to provide Buyer with the
most current version of the Seller’s Property Disclosure form completed by
Seller to the best of Seller’s current actual knowledge, current as of the date
of this Contract.

 

b. Inspection Objection Deadline. Buyer shall have the  right to have
inspections of the physical condition of the Property and Inclusions, at Buyer’s
expense. If the physical condition of the Property or Inclusions is
unsatisfactory in Buyer’s subjective discretion, Buyer shall, on or before
Inspection Objection Deadline (§ 2c):

 

(1)   notify
Seller in writing that this Contract is terminated, or

 

(2)   provide
Seller with a written description of any unsatisfactory physical condition
which Buyer requires Seller to correct (Notice to Correct).

 

If written notice is not received by Seller on or
before Inspection Objection Deadline (§
2c), the physical condition of the Property and Inclusions shall be deemed to
be satisfactory to Buyer.

 

c. Resolution Deadline. If a Notice to
Correct is received by Seller and if Buyer and Seller have not agreed in writing to a
settlement thereof on or before Resolution
Deadline (§ 2c), this Contract shall terminate one calendar day
following the Resolution Deadline
(§ 2c), unless before such termination Seller receives Buyer’s written withdrawal
of the Notice to Correct.

 

d. Insurability. This Contract is conditioned upon Buyer’s
satisfaction, in Buyer’s subjective discretion, with the availability,
terms, conditions and premium for property insurance. This Contract shall terminate upon Seller’s receipt,
on or before Property  Insurance
Objection Deadline (§ 2c) of Buyer’s written notice that such
insurance was not satisfactory to Buyer. If said notice is not timely received,
Buyer shall have waived any right to terminate under this provision.

 

e. Damage, Liens and Indemnity. Buyer is responsible for payment for all inspections, surveys,
engineering reports or for any other work performed at Buyer’s request and shall
pay for
any
damage which occurs to the Property and Inclusions as a result of such
activities. Buyer shall not permit claims or liens of any kind against the
Property for inspections, tests, surveys, engineering reports, or any other
work performed on the Property at Buyer’s request. Buyer agrees to indemnify, protect
and hold Seller harmless from and against any liability, damage, cost or expense incurred
by Seller in connection with any such inspection, claim, or lien. This
indemnity includes Seller’s right to recover all costs and expenses
incurred by Seller to enforce this section, including Seller’s reasonable
attorney and legal fees. The provisions of this section shall survive the
termination of this Contract.

 

f. Buyer Disclosure. Buyer represents
that Buyer   o Does   x  Does Not need to sell and close a property to
complete this transaction.

 

Note: Any property sale contingency should appear in Additional Provisions (§ 25).

 

11.                               METHAMPHETAMINE LABORATORY
DISCLOSURE. The parties acknowledge that Seller is required to disclose whether
Seller knows that the Property was previously used as a methamphetamine
laboratory. No disclosure is required if the Property was remediated in
accordance with state standards and other requirements are fulfilled pursuant
to § 25-18.5-102, C.R.S. Buyer further acknowledges that Buyer has the
right to engage a certified hygienist or industrial hygienist to test whether
the Property has ever been used as a methamphetamine laboratory. In the event
that the Property has been used as a methamphetamine laboratory, Buyer may
provide written notice to Seller, on or before Closing, to terminate this Contract.

 

12.                               CLOSING. Delivery of deed
from Seller to Buyer shall be at closing (Closing). Closing shall be on the
date specified as Closing Date (§
2c) or by mutual agreement at an earlier date. The hour and place of Closing
shall be as designated by mutual agreement of the parties.

 

7

 

13.                               TRANSFER OF TITLE. Subject to tender
or payment at Closing as required herein and compliance by Buyer with the other
terms and provisions hereof, Seller shall execute and deliver a good and
sufficient special warranty deed
to Buyer, at Closing, conveying the Property free and clear of all taxes except
the general taxes for the year of Closing. Except as provided herein, title
shall be conveyed free and clear of all liens, including any governmental liens
for special improvements installed as of the date of Buyer’s signature hereon,
whether assessed or not. Title shall be conveyed subject to:

 

a.               those specific Exceptions and described by reference
to recorded documents as reflected in the Title Documents accepted by Buyer in
accordance with § 8a (Title Review),

 

b.         distribution utility easements (including cable TV),

 

c.          those specifically described rights of third parties
not shown by the public records of which Buyer has actual knowledge and which
were accepted by Buyer in accordance with § 8b (Matters not Shown by the Public
Records) and § 8c (Survey Review).

 

d.         inclusion of the Property within any special taxing
district,

 

e.          the benefits and burdens of any recorded declaration
and party wall agreements, if any, and

 

f.            other none.

 

14.                               PAYMENT OF ENCUMBRANCES. Any encumbrance
required to be paid shall be paid at or before Closing from the proceeds of
this transaction or from any other source.

 

15.                               CLOSING COSTS, DOCUMENTS AND
SERVICES.

 

a.   Good Funds. Buyer and Seller
shall pay, in Good Funds, their respective Closing costs and all other items
required to be paid at Closing, except as otherwise provided herein.

 

b.   Closing
Documents. Buyer and Seller shall sign and complete all customary or reasonably
required documents at or before Closing.

 

c.   Closing
Services Fee. Fees for real estate Closing services shall be paid
at Closing by x  One-Half by Buyer
and One-Half by Seller   o  Buyer   o  Seller.

 

d.   Status
Letter and Transfer Fees. Any fees incident to the issuance of owners’
association statement of assessments (Status Letter) shall be paid by o  Buyer o Seller.   o  One-Half by Buyer and One-Half by Seller.
Any fees incident to the transfer from Seller to Buyer assessed by the owners’
association (Owners’ Association Transfer Fee) shall be paid by o Buyer   o Seller   qOne-Half by Buyer and
One-Half by Seller.

 

e.   Local
Transfer Tax. The local transfer tax of N/A% of the Purchase Price shall be
paid at Closing by o Buyer
 o Seller  
o  One-Half by Buyer
and One-Half by Seller.

 

f.    Sales and
Use Tax. Any sales and use tax that may accrue because of this transaction shall
be paid when due by x Buyer   o  Seller   o One-Half by Buyer and One-Half by Seller.

 

16.                               PRORATIONS. The following shall
be prorated to Closing Date (§
2c), except as otherwise provided:

 

a.   Taxes. Personal property taxes, if
any, and general real estate taxes for the year of Closing, based on o  Taxes for the Calendar Year
Immediately Preceding Closing x  Most Recent Mill Levy and Most
Recent Assessed Valuation o Other   .

 

b.   Rents. Rents based on  x Rents Actually Received   o Accrued. Security deposits
held by Seller shall be credited to Buyer. Seller shall assign all leases to Buyer and Buyer
shall assume such leases.

 

c.   Association
Assessments. Current regular owners’ association assessments and
association dues (Association Assessments) paid in advance shall be credited to Seller at Closing. Cash
reserves held out of the regular Association Assessments for deferred maintenance by the
owners’ association shall not be credited to Seller except as may be otherwise provided by
the Governing Documents. Any special assessment by the owners’ association for
improvements that have been installed as of the date of Buyer’s signature
hereon shall be the obligation of Seller. Any other special assessment assessed
prior to Closing Date (§ 2c) by
the owners’ association shall be the obligation of o  Buyer   oSeller. Seller represents
that the amount of the Association Assessment is currently payable at $N/A per N/A  and that there are no
unpaid regular or special assessments against the Property except the current
regular assessments and except N/A. Such assessments are subject to change as provided in the Governing
Documents. Seller agrees to promptly request the owners’ association to deliver
to Buyer before Closing Date (§
2c) a current statement of assessments against the Property.

 

d.   Other
Prorations. Water and sewer charges; interest on any continuing
loan, and any
similar items.

 

e.   Final Settlement.
Unless otherwise agreed in writing, these prorations shall be final.

 

17.                               POSSESSION. Possession of the
Property shall be delivered to Buyer on Possession Date
and Possession Time (§ 2c),
subject to the following leases or tenancies: none.

 

8

 

If Seller, after Closing, fails to deliver
possession as specified, Seller shall be subject to eviction and shall be
additionally liable to Buyer for payment of $1,000 per day (or any part of a day) from the Possession
Date and Possession Time (§ 2c) until
possession is delivered.

 

Buyer o Does   x  Does Not represent that Buyer will occupy the Property as
Buyer’s principal residence.

 

18.                             ASSIGNABILITY. This Contract  x  Shall   o  Shall Not be assignable by
Buyer without Seller’s prior written consent. Except as so restricted, this
Contract shall inure to the benefit of and be binding upon the heirs, personal
representatives, successors and assigns of the parties.

 

19.                               INSURANCE; CONDITION OF,
DAMAGE TO PROPERTY AND INCLUSIONS. Except as otherwise provided in this
Contract, the Property, Inclusions or both shall be delivered in the condition
existing as of the date of this Contract, ordinary wear and tear excepted.

 

a.            Casualty Insurance. In the event the
Property or Inclusions shall be damaged by fire or other casualty prior to
Closing, in an amount of not more than ten percent of the total Purchase Price,
Seller shall be obligated to repair the same before the Closing Date (§ 2c). In the event such
damage is not repaired within said time or if the damages exceed such sum, this
Contract may be terminated at the option of Buyer by delivering to Seller
written notice of termination on or before Closing. Should Buyer elect to carry
out this Contract despite such damage, at Closing, Buyer shall be entitled to a
credit for all the insurance proceeds that were received by Seller (but not owners’
association, if any) resulting from such damage to the Property and Inclusions
plus the amount of any deductible provided for in such insurance policy. Such
credit not to exceed the Purchase Price. In the event Seller has not received
such insurance proceeds prior to Closing, then Seller shall assign such
proceeds, at Closing, plus credit Buyer the amount of any deductible provided
for in such insurance policy, but not to exceed the total Purchase Price.

 

b.            Damage, Inclusions and
Services. Should any Inclusion or service (including systems and components of the
Property, e.g. heating, plumbing, etc.) fail or be damaged between the date of
this Contract and Closing or possession, whichever shall be earlier, then
Seller shall be liable for the repair or replacement of such Inclusion or
service with a unit of similar size, age and quality, or an equivalent credit,
but only to the extent that the maintenance or replacement of such Inclusion,
service or fixture is not the responsibility of the owners’ association, if
any, less any insurance proceeds received by Buyer covering such repair or
replacement. Seller and Buyer are aware of the existence of pre-owned home
warranty programs that  may be purchased
and may cover the repair or replacement of some Inclusions. The risk of loss
for damage to growing crops by fire or other casualty shall be borne by the
party entitled to the growing crops as provided in subsection 3a(7) and
such party shall be entitled to such insurance proceeds or benefits for the
growing crops.

 

c.            Walk-Through and
Verification of Condition. Buyer, upon reasonable notice, shall have the right
to walk through the Property prior to Closing to verify that the physical condition
of the Property and Inclusions complies with this Contract.

 

20.                               RECOMMENDATION OF LEGAL AND  TAX COUNSEL. By signing this
document, Buyer and Seller acknowledge that the respective broker has advised that this
document has important legal consequences and has recommended the examination
of title and consultation with legal and tax or other counsel before signing this
Contract.

 

21.                             TIME OF ESSENCE, DEFAULT AND
REMEDIES. Time is of the essence hereof. If any note or check received as Earnest
Money hereunder
or any other payment due hereunder is not paid, honored or tendered when due, or if any obligation
hereunder is not performed or waived as herein provided, there shall be the
following remedies:

 

a.   If Buyer is in Default:

 

o                                                                                   (1)  Specific
Performance. Seller
may elect to treat this Contract as canceled, in which case all Earnest Money
(whether or not paid by Buyer) shall be forfeited by Buyer, paid to Seller and retained
by Seller; and Seller may recover such damages as may be proper; or Seller may
elect to treat this Contract as being in full force and effect and Seller shall
have the right to specific performance or damages, or both.

 

x                                                                                 (2)  Liquidated
Damages. All Earnest Money (whether or not paid by Buyer) shall be forfeited by Buyer,
paid to Seller, and retained by Seller. Both parties shall thereafter be
released from all obligations hereunder. It is agreed that the Earnest Money
specified in § 4 is LIQUIDATED DAMAGES, and not a penalty, which amount the
parties agree is fair and reasonable and (except as provided in § §10e, 19,
21c, 22, 23), and forfeiture shall be SELLER’S SOLE AND ONLY REMEDY for Buyer’s
failure to perform the obligations of this Contract. Seller expressly waives
the remedies of specific performance and additional damages.

 

b.          If Seller is in Default: Buyer may elect to
treat this Contract as canceled, in which case all Earnest Money received
hereunder shall be returned and Buyer may recover such damages as may be
proper, or Buyer may elect to treat this Contract as being in full force and
effect and Buyer shall have the right to specific performance or damages, or
both.

 

c.          Costs and Expenses. In the event of
any arbitration or litigation relating to this Contract, the arbitrator or
court shall award to the prevailing party all reasonable costs and expenses,
including attorney and legal fees.

 

22.                               MEDIATION. If a dispute arises
relating to this Contract, prior to or after closing, and is not resolved, the
parties shall first proceed in good faith to submit the matter to mediation. Mediation is a
process in which the parties

 

9

 

meet with an impartial person who helps to resolve
the dispute informally and confidentially. Mediators cannot impose binding
decisions. The parties to the dispute must agree before any settlement is
binding. The parties will jointly appoint an acceptable mediator and will
share equally in the cost of such mediation. The mediation, unless otherwise
agreed, shall terminate in the event the entire dispute is not resolved within
30 calendar days of the date written notice requesting mediation is sent by one
party to the other at the party’s last known address. This section shall not
alter any date in this Contract, unless otherwise agreed.

 

23.                               EARNEST MONEY DISPUTE. Except as
otherwise provided herein, Earnest Money Holder shall release the Earnest Money
as directed by written mutual instructions, signed by both Buyer and Seller. In
the event of any controversy regarding the Earnest Money (notwithstanding any
termination of this Contract), Earnest Money Holder shall not be required to
take any action. Earnest Money Holder, at its option and sole discretion, may: (a) await
any proceeding, (b) interplead all parties and deposit Earnest Money into
a court of competent jurisdiction and shall recover court costs and reasonable
attorney and legal fees, or (c) give written notice to Buyer and Seller
that unless Earnest Money Holder receives a copy of the Summons and Complaint
or Claim (between Buyer and Seller), containing the case number of the lawsuit
(Lawsuit) within 120 calendar days of Earnest Money Holder’s written notice to the parties, Earnest Money
Holder shall be authorized to return Earnest Money to Buyer. In the event Earnest Money Holder does not
receive a copy of the Lawsuit, and has interpled the monies at the time of any
Order, Earnest Money Holder shall disburse the Earnest Money pursuant to the
Order of the Court. The parties reaffirm the obligation of Mediation (§ 22).

 

24.                               TERMINATION. In the event this
Contract is terminated, all Earnest Money received hereunder shall be returned
and the parties shall be relieved of all obligations hereunder, subject to § §
10e, 22 and 23.

 

25.                               ADDITIONAL PROVISIONS. (The following
additional provisions have not been approved by the Colorado Real Estate
Commission.)

 

a)         ADDITIONAL EARNEST MONEY. An additional $150,000
shall be deposited by Buyer with Title Company within one (1) business
days after the Buyer has waived its Inspection contingency per Section 10.
b. & 10. c. The total $250,000 shall be applied to the Purchase Price  and shall be
non-refundable to Buyer except for i) any new title matter pursuant to Section 8.
a, or ii) a Seller default.

 

b)         SURVEY. Seller, at its
expense, shall provide Buyer with a Survey for the Property which complies with
the current requirements of ALTA/ASCM. The Survey will be certified to the
Buyer, Buyer’s Lender, and the Title Company. If Buyer fails to purchase the
Property for any reason constituting a default on the part of the Buyer, Buyer
shall reimburse Seller for the cost of the survey.

 

c)         CLOSING & CLOSING
EXTENSION. Closing shall be no later than fifteen (15) days after Buyer has waived
its Inspection contingency per Section 10. b & 10. c., to be
scheduled by mutual agreement of Buyer and Seller. Buyer shall be allowed one (1) thirty
(30) day extension upon providing written notice to Seller and an additional
$50,000 in Earnest Money, to be applied to the Purchase Price at Closing. If after
extending the Closing the Buyer fails to close for any reason constituting
a default on its part, the entire Earnest Money shall be paid over to the Seller pursuant
to 121.

 

d)         Buyer acknowledges that
the 50/60Hz generator, located in the Property, is the personal property of the tenant currently located within the
Property. The tenant shall vacate the Property prior to Closing and shall have the
right to remove such personal property from the Property prior to Closing, provided that
Tenant shall also remove all associated wiring and repair any damage caused by
such removal. Buyer shall have no right to such personal property. See Exhibit A
attached
hereto and incorporated herein by this reference.

 

26.                               ENTIRE AGREEMENT,
MODIFICATION, SURVIVAL. This agreement constitutes the entire Contract
between the parties relating to the subject hereof, and any prior agreements
pertaining thereto, whether oral or written, have been merged and integrated into
this Contract. No subsequent modification of any of the terms of this Contract shall be
valid, binding upon the parties, or enforceable unless made in writing and
signed by the parties. Any obligation in this Contract that, by its terms, is intended to be
performed after termination or Closing shall survive the same.

 

27.                               FORECLOSURE DISCLOSURE AND
PROTECTION. Seller acknowledges that, to Seller’s current actual knowledge, the
Property  o  . IS   x IS NOT in foreclosure. In
the event this transaction is subject to the provisions of the Colorado
Foreclosure Protection Act (the Act) (i.e., generally the Act requires that the
Property is residential, in foreclosure, and Buyer does not reside in it for at
least 1 year), a different contract that complies with the provisions of the
Act is required, and this Contract shall be void and of no effect unless the
Foreclosure Property Addendum is executed by all parties concurrent with the
signing of this Contract. The parties are further advised to consult with their
own attorney.

 

28                                NOTICE, DELIVERY AND CHOICE
OF LAW.

 

a.  Physical Delivery. Except for the notice
requesting mediation described in § 22, and except as provided in § 28b below,
all notices must be in writing. Any notice to Buyer shall be effective when
received by Buyer or by Selling Brokerage Firm, and any notice to Seller shall
be effective when received by Seller or Listing Brokerage Firm.

 

10

 

b.  Electronic
Delivery. As an alternative to physical delivery, any signed document and written
notice may be delivered in electronic form by the following indicated methods
only:  x  Facsimile   xE-mail   oNo Electronic Delivery. Documents with
original signatures shall be provided upon request of any party.

 

c.  Choice of Law. This Contract and all disputes arising
hereunder shall be governed by and construed in accordance with the laws of the
State of Colorado that would be applicable to Colorado residents who sign a
contract in this state for property located in Colorado.

 

29.                               NOTICE OF ACCEPTANCE,
COUNTERPARTS. This proposal shall expire unless accepted in writing, by Buyer and
Seller, as evidenced by their signatures below, and the offering party receives
notice of such acceptance pursuant to § 28 on or before Acceptance Deadline Date (§ 2c) and Acceptance Deadline Time (§ 2c). If
accepted, this document shall become a contract between Seller and Buyer. A
copy of this document may be executed by each party, separately, and when each
party has executed a copy thereof, such copies taken together shall be deemed
to be a full and complete contract between the parties.

 

 

	
   

  	
  

  	
   

  	
   

  
	
  Buyer Ascent Solar Technologies, Inc.

  	
   

  	
  Buyer

  	
   

  
	
  By:

  	
   

  	
  Matthew Foster

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
  President & CEO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  11/26/07

  	
   

  	
  Date:

  	
   

  
	
  Address:

  	
  8120 Shaffer Parkway,

  	
   

  	
  Address:

  	
   

  
	
   

  	
  Littleton, CO 80127-4107

  	
   

  	
   

  	
   

  
	
  Phone No.:

  	
  (303) 285-5137

  	
   

  	
  Phone No.:

  	
   

  
	
  Fax No.:

  	
  (303) 285-9882

  	
   

  	
  Fax No.:

  	
   

  
	
  Email Address:

  	
    arnisra@ascentsolar.com

  	
   

  	
  Email Address:

  	
   

  
												

[NOTE: If
this offer is being countered or rejected, do not sign this document. Refer to
§ 30]

 

 

	
   

  	
  

  	
   

  	
   

  
	
  Seller J N
  Properties

  	
   

  	
  Seller

  
	
  By:

  	
  Morgan Nields

  	
   

  	
   

  
	
  Date:

  	
  11/28/07

  	
   

  	
  Date:

  	
   

  
	
  Address:

  	
  4 Sunrise Drive

  	
   

  	
  Address:

  	
   

  
	
   

  	
  Englewood, CO 80113

  	
   

  	
   

  	
   

  
	
  Phone No.:

  	
  (303) 242-8026

  	
   

  	
  Phone No.:

  	
   

  
	
  Fax No.:

  	
  (303) 396-0033

  	
   

  	
  Fax No.:

  	
   

  
	
  Email Address:

  	
  mnields@abla-tx.com

  	
   

  	
  Email Address:

  	
   

  
										

 

38.                               COUNTER; REJECTION. This offer is o Countered   o Rejected.

 

Initials only of party (Buyer or Seller) who countered
or rejected offer                 

 

END OF CONTRACT

 

Note: Closing Instructions and Earnest Money Receipt should be signed on or before Title Deadline (§ 2c).

 

SELLING BROKER’S ACKNOWLEDGMENTS AND COMPENSTION DISCLOSURE. 

(To be completed by Selling Broker)

 

The Selling Broker
o Does    x Does Not acknowledge receipt
of the Earnest Money deposit specified in § 4 and, while not a party to the
Contract, agrees to cooperate upon request with any mediation concluded under §
22.

 

11

 

The Selling Broker is working with the Buyer as a  x Buyer’s Agent   o Transaction-Broker in this
transaction. o This is a Change of Status.

 

Seller  o IS   x  IS  NOT
a
customer working with Selling Broker as a Seller’s Agent.

 

The Selling Brokerage Firm’s compensation or
commission is to be paid by o Listing Brokerage Firm
  o Buyer  x Other Seller shall
pay Selling Brokerage Firm a commission equal to 2.5% of the purchase price.

 

Selling Brokerage Firm’s Name:   Oliver Real
Estate Commercial

 

 

	
  Broker

  	
   

  	
  Tony Oliver

  
	
  Date:

  	
   

  	
  11/26/07

  
	
  Address:

  	
   

  	
  1400 S. Colorado Blvd, # 410

  
	
   

  	
   

  	
  Denver, CO 80222

  
	
  Phone No.:

  	
   

  	
  (303) 691-0179

  
	
  Fax No.:

  	
   

  	
  (303) 757-7275

  
	
  Email Address:

  	
   

  	
  tonyoliver@earthlink.net

  

 

LISTING BROKER’S ACKNOWLEDGEMENTS AND
COMPENSATION DISCLOSURE. 

(To be completed by Listing Broker)

 

The Listing Broker o Does    x Does Not acknowledge
receipt of Earnest Money deposit specified in § 4 and, while not a party to the
Contract, agrees to cooperate upon request with any mediation concluded under §
22.

 

The Listing Broker is working with the Seller as a x Seller’s Agent o Transaction-Broker
in this transaction. o This is a Change of Status.

 

Buyer  o IS    o IS NOT a customer working
with Selling Broker as a Buyer’s Agent.

 

Listing Broker Firm’s compensation is to be paid by  x Seller    o Buyer    o Other

Listing Brokerage Firm’s Name:  CB Richard
Ellis

 

	
  Broker

  	
   

  	
  Jim Bolt

  
	
  Date:

  	
   

  	
                             

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Phone No.:

  	
   

  	
  720-528-6310

  
	
  Fax No.:

  	
   

  	
   

  
	
  Email Address:

  	
   

  	
  james.bolt@cbre.com

  

 

12

 

EXHIBIT A

 

THIS EXHIBIT A is
attached to and shall be a part of that certain Contract to Buy and Sell Real
Estate dated November 26, 2007, by and between J N PROPERTIES (“Seller”) and ASCENT SOLAR TECHNOLOGIES, INC. (“Buyer”) related to
Property known as 12300 Grant Street, Thornton, CO (the “Contract”). The terms
of the Contract are supplemented as hereinafter set forth. In the event of any
conflict between any terms of the Contract and this Exhibit A, this Exhibit A
shall be controlling.

 

1.                                       Seller’s Warranties and Obligations.

 

(a)                                  In order to induce Buyer to enter into this
Contract, Seller does hereby warrant and represent to Buyer that to the best of
Seller’s knowledge and belief:

 

(i)                              There has been no written demand by any
beneficiary of any deed of trust, insurance underwriter or governmental
authority for work to be done or other action to be taken by Seller which has
not been complied with to the satisfaction of the entity making such demand;
and

 

(ii)                            All information to be delivered to Buyer
hereunder by Seller shall be true, correct and complete to the best of Seller’s
knowledge, as of the date of such information.

 

(b)                                 Seller further represents and warrants that as of the date of this Contract and as of
the date of closing;

 

(i)                           Seller has all requisite authority to enter into this
Contract and to perform all obligations hereunder. Seller is not a party to, subject to or bound by, and will not be a
party to, subject to or bound by, and except as disclosed herein, none of the
Property is subject to: any deed of
trust,
loan agreement or other agreement or instrument of any kind, or any judgment, order,
writ, injunction or decree of any court or governmental body that could prohibit, prevent
or affect the carrying out of
the transactions
contemplated by this Contract,
or the performance by Seller of any obligations hereunder or the use by Buyer
of the Property.

 

(ii)                            This Contract has been duly executed by and
constitutes a valid and binding obligation of Seller in accordance with its
terms.

 

(iii)                          To the best of Seller’s knowledge and belief,
except as specifically disclosed and approved by Buyer, there is no litigation,
action, proceeding or investigation pending or threatened before any court,
administrative agency or other governmental body by or against Seller or which
affects or relates to the Property.

 

(c)                                  Between the date of execution hereof and the
date of the closing, Seller:

 

1

 

(i)                              Shall not dispose of any interest in the Property and
shall not grant any deed of trust or pledge or subject to lien or other
encumbrance any interest in the Property;

 

(ii)                            Shall enter into no
contract or lease which affects the Property or the transactions contemplated
by this Contract without the prior written consent of the Buyer.

 

The foregoing warranties and representations shall
be restated and true and correct as of the closing date. The provisions of this
paragraph shall survive the closing, and shall continue in full force and
effect for a period of twelve months from and after Closing.

 

2.                                       No Representations. Seller and Buyer acknowledge and agree that, except
as provided in Section 1 above and as otherwise expressly provided for
elsewhere in this Contract, Seller has not made any representations,
warranties, or agreements to Buyer as to any matter concerning the Property,
the present use thereof, or the suitability for Buyer’s intended use of the
Property, including, without limitation, any representations, warranties, or
agreements relating to topography, climate, air, water, water rights,
utilities, present and future zoning, soil, subsoil, environmental conditions,
the purposes to which the Property is suited, the use of adjoining of nearby
properties, drainage, access to public roads, or proposed routes of roads, or
extensions thereof, or the effect of any state or federal environmental
protection laws or regulations. Buyer represents and warrants to Seller that
Buyer has made or will make its own independent inspection and investigation of
the Property and, in entering into this Contract, Buyer intends to rely solely
on such inspection and investigation of the Property. No patent or latent physical
condition of the Property, whether or not now known or discovered, shall affect
the rights of either party hereto. No agreement, warranty, or representation, unless
expressly contained or provided for in Section 1, shall bind Seller. Buyer
expressly waives any right of rescission and all claims for damages by reason
of any
statement, representation, warranty, promise, or agreement, if any, unless
contained in this Agreement. The foregoing provisions of Paragraph 2 of this Exhibit A notwithstanding,
Seller shall not be relieved of its obligation to disclose latent defects in the
Property actually known to Seller and which would not be discoverable by Buyer pursuant
to a
reasonable inspection of the Property.

 

3.                                         Inspection of Documents. Within ten (10) days of the mutual acceptance
of this Contract, Seller shall deliver to Buyer, for Buyer’s inspection, copies
of the following documents relating to the Property, to the extent that such
documents are in Seller’s possession or control:

 

(a)                                  All environmental
assessments, reports, and other environmental information regarding the
Property.

 

(b)                                 All soils tests or
analyses relating to the Property.

 

(c)                                  All surveys, plans
and drawings regarding the Property.

 

2

 

(d)                                    All flood plain maps or other information
regarding the existing flood plain designation as it relates to the Property.

 

(e)                                     All title insurance
commitments and policies relating to
the Property.

 

(f)                                       All leases affecting the
Property, Buyer acknowledges that all leases encumbering the Property shall be
terminated by Seller on or before Closing.

 

4.                                         Interest Bearing Account.  All Earnest Money paid to Earnest Money
Holder shall be deposited in an interest bearing account with the interest accruing
to the benefit of Buyer unless the Earnest Money is paid to Seller pursuant to
§21 of the Contract, in which case it shall be paid over to the Seller.

 

5.                                         Access.  Seller covenants and agrees that from
and after the date of the Seller=s execution. of this Contract, Buyer and its
contractors, agents and/or employees, shall have reasonable access, and the
right to enter upon the Property for the purpose of making surveys, engineering
studies, soil tests, drainage studies, and such other tests, studies, or
investigations, as the Buyer deems necessary, to determine the viability of the
Property for the use to which Buyer intends to put it. Seller will endeavor to
provide access within 48 hours of any request by Buyer.

 

6.                                         Indemnification; No Mechanic’s Lien.  Buyer hereby
acknowledges that the preparation and submission of any plans, and the making
of investigations, tests, and surveys prior to the Closing hereunder, is for
the benefit of and at the insistence of Buyer. Buyer expressly acknowledges that nothing in this Contract shall
authorize Buyer, or any person dealing with, through, or under Buyer to subject
Seller’s interest in any portion of the Property to mechanic’s liens prior to
Closing of the Property. Buyer agrees to indemnify, hold harmless, and defend
Seller from any claim, liability, loss, damage, cost, or expense, including
attorney’s fees, which Seller may incur or that may be asserted by reason of
any entry on the Property or work performed by, through, or under Buyer or the preparation of any plans by or on
behalf of Buyer, or the making of investigations, tests, and surveys ordered or
conducted by Buyer. Buyer agrees not to permit or suffer and, to the extent so
permitted or suffered, to cause to be immediately removed and released, any mechanic’s,
materialman’s, or other lien on account of supplies, machinery, tools,
equipment, labor, or materials furnished or used in connection with the
planning, design, inspection, construction, alteration, repair, or surveying of
the Property, or preparation of plans with respect thereto as aforesaid by,
through, or under Buyer.

 

7.                                         Prior Insurance Loss.  Buyer
acknowledges that Seller experienced a loss at the Property due to vandalism
and theft. Seller has approximately $110,000.00 remaining in insurance proceeds
to be used to restore and refurbish the Property. Within three (3) business
days after mutual execution of this Contract, Seller and Buyer agree to agree
upon the specific repairs and replacements to be made to the Property using the insurance proceeds. Buyer shall request the
specific repairs and replacements which Buyer wishes the insurance proceeds to
be used to repair and refurbish the Property and Seller shall have the right to
approve such repairs and replacements in the exercise of

 

3

 

Seller’s reasonable discretion. If Buyer and Seller
are unable to agree upon the specific list of repairs and replacements within
such three (3) business days after mutual execution of this Contract,
either party shall have the right to terminate this Contract and the earnest
money deposit shall be returned to Buyer. Seller shall, subject to force
majure, complete all such work prior to Closing and Buyer shall cooperate fully
to facilitate such work. If the repairs and replacements exceed the sum of
$110,000.00 Buyer shall pay to Seller at Closing, the additional amount in
excess of such $110,000.00. If the proposed work exceeds an estimated amount
$125,000.00, Seller shall have the right to request that Buyer deposit into
escrow the amount in excess of $110,000.00 as an additional earnest money
deposit. If work, in the amount of $110,000.00 or more, is not completed prior
to Closing, Seller shall escrow, at Closing, an amount reasonably agreed upon
by Seller and Buyer to complete the repairs and replacements and Seller shall
have a right to receive such funds upon completion of and payment for such
work.

 

8.                                         Dates for Performance.  Should any date in
this Contract call for the performance of any action or notice, or the
occurrence of any event, on a Saturday, Sunday or legal holiday, such date
shall be the next business day thereafter.

 

9.                                         Further Acts.  In addition
to the acts, deeds, instruments and agreements recited herein and contemplated
to be
performed, executed and delivered by Buyer and Seller, Buyer and Seller shall
perform, execute and deliver or cause to be performed, executed and delivered
at any Closing or after any Closing, any and all further acts, deeds,
instruments and agreement and provide such further assurances as the other
party or the title company may reasonably required to consummate the
transaction contemplated hereunder. However, the foregoing shall not be deemed
to (i) require Seller to expend a sum of money which it would not
reasonably have anticipated on the execution date, or (ii) require Buyer to expend a
sum of money which it could not reasonably have anticipated on the Inspection Objection Deadline.

 

10.                                    Gender/Headings.  Throughout this Agreement, where such
meanings would be appropriate: (a) the masculine gender shall be deemed to include the
feminine and the neuter and vice versa, and (b) the singular shall be
deemed to include the plural, and vice versa. The headings herein are inserted
only as a matter of convenience and reference, and in no way define, or
describe the scope of the Agreement, or the intent of any provisions
thereof.

 

11.                                    Waiver.  Buyer shall have the right to waive
compliance by Seller with any condition or covenant contained herein.

 

12.                                    Non-Waiver.  Failure of either party to declare any
breach or default immediately upon occurrence thereof, or delay in taking any action in
connection therewith, shall not waive such breach or default, but the
non-defaulting party shall have the right to declare any such breach or default
at any time and take such action as might be lawful or authorized hereunder
either at law or in equity.

 

13.                                    Transfer of Title.  §13. shall
be amended by deleting Sub¶s b. and e. In addition, Sub¶ c. shall be amended to
read “those specifically described rights of third

 

4

 

parties not shown by the public records
disclosed to Buyer in writing and which were accepted by Buyer in accordance
with §8.b (Matters Not Shown by the Public Records) and §8.c. (Survey).”

 

 

	
  SELLER:

  	
  BUYER:

  
	
   

  	
   

  
	
  J N PROPERTIES

  	
  ASCENT SOLAR TECHNOLOGIES, INC.

  

 

	
  By:

  	
  

  	
   

  	
  By:

  	
        
  

  
	
   

  	
  Morgan Nields

  	
   

  	
   

  	
  Matthew Foster

  

 

5Exhibit 10.37

 

CONSTRUCTION LOAN AGREEMENT

 

THIS CONSTRUCTION LOAN AGREEMENT (“Agreement”),
dated February 8, 2008, is by
and between the Colorado Housing and Finance Authority (the “Authority”), a
body corporate and political subdivision of the State of Colorado and Ascent Solar Technologies, Inc., a Delaware
corporation (the “Borrower”).

 

In consideration of the mutual covenants and
agreements herein contained, the Borrower and the Authority agree as follows:

 

1.             Loan and Purpose. The Authority
agrees to lend and the Borrower agrees to borrow from the Authority up to Seven Million Five Hundred Thousand and No/100 Dollars
($7,500,000.00) (the “Loan”) for the acquisition and renovation of a
commercial facility located at 12300 Grant
Street, Thornton, CO 80241, consisting of a building and
improvements (the “Improvements”) upon the real property described in Exhibit A  attached hereto (the “Property”). The Loan
will be disbursed to the Borrower subject to all of the terms, provisions,
conditions, covenants and agreements contained in this Agreement and a
Disbursement Agreement of even date herewith among the Authority, the Borrower
and the Escrow Agent (as defined in the Disbursement Agreement). The Loan is
evidenced by a promissory note of even date herewith (the “Note”) and secured
by a Deed of Trust, Security Agreement, Financing Statement and Assignment of
Rents and Leases of even date herewith (the “Deed of Trust”). The Authority
agrees to make an initial advance in an amount of no more than Four Million One
Hundred Thirty-Six Thousand Five Hundred Dollars ($4,136,500.00), to fund the
acquisition of the Property and Improvements by Borrower. The balance of the
Loan shall be available to fund renovations to the Improvements, in accordance
with the terms and provisions of this Agreement. Notwithstanding anything
herein to the contrary, the Authority reserves the right at any time to refuse
to fund any amounts hereunder if the Authority determines, in its sole
judgment, that either the Borrower or the Loan fails to strictly conform to the
requirements of the Commitment (defined below), this Loan Agreement, the Authority’s
Business Finance Credit Policy, or the Authority’s Direct Loan Program
Guidelines.

 

2.             Conditions
Precedent to Initial Advance for Acquisition. Prior to the advance of any Loan proceeds under
this Agreement and as a condition precedent to the initial advance of Loan
proceeds by the Authority for the Borrower’s acquisition of the Property and Improvements,
all of the following conditions shall have been satisfied, which satisfaction
shall be determined by the Authority in its sole discretion:

 

(a)             The Construction
Loan Conditions set forth in that certain Construction and Permanent Loan
Commitment issued by the Authority dated January 16, 2008 (the “Commitment”),
including,
but not limited to, those conditions set forth in Paragraphs 12, 13, 16, and
17, and Paragraphs A and B of Exhibit A thereof, which conditions are incorporated
herein by reference, shall have been satisfied.

 

(b)             Borrower shall have
performed and complied in all material respects with all covenants, agreements
and conditions required by this Agreement, the Disbursement Agreement, and any other
document evidencing, securing or executed in connection with the Loan (the “Loan
Documents”) to be performed or complied with by it on or before the date of
such advance. Notwithstanding the foregoing, the Authority may, in its sole
discretion, make advances notwithstanding the Borrower’s failure to fully
perform or so comply however any such advance shall be deemed to have been made
pursuant to this Agreement and shall not be deemed a waiver by the Authority of
such failure or any future performance therewith.

 

3.             Conditions Precedent to
Commencement of Construction, Additional Advances. The Borrower shall
not begin construction of any of the Renovations, defined below, until (x) the
conditions set

 

1

 

forth in Section 2 hereof, and the further
conditions set forth in subparagraphs (a), (b), (c), (d), and (e) of this
section, have been satisfied and, in addition, (y) the Loan is in balance
as of the date of the commencement of the Renovations, as set forth in greater
detail in subparagraph (k) hereof, and (z) the Authority has
confirmed, in writing to Borrower, the satisfaction of such conditions. In
addition, the Authority’s obligation to make any additional advance of Loan
proceeds or of any funds deposited by Borrower pursuant to the terms hereof
after the initial advance, and each and every such additional advance to be
made by the Authority hereunder, shall be subject to the satisfaction of the
conditions precedent listed in Section 2, and to the following:

 

(a)             Borrower shall have
furnished to the Authority for its review and approval a set of the final plans
and specifications (the “Plans”) for the renovations to the Improvements (the “Renovations”)
which shall have been approved by the Authority. A copy of the Plans shall be
incorporated herein by this reference when received and approved by the
Authority. No material changes in the Plans shall be made without the prior
written approval of the Authority.

 

(b)             Borrower shall have
furnished to the Authority for its review and approval, a copy of the final “line
item” construction budget (the “Budget”) and executed schedule of values (the “Schedule
of Values”) prepared by the Contractor and co-signed by Borrower and approved
by Lender, disclosing the various subcontracts and other contracts and
agreements, written or oral, entered into by the Contractor in connection with
construction of the Renovations, setting forth: (A) the names of all
subcontractors and other parties with whom the Contractor has contracted or
agreed to date; (B) whether such contract or agreement is written or oral;
(C) the labor, materials or other work to be furnished pursuant thereto; (D) the
amount of each subcontract, contract or other agreement; (E) the amounts
paid to date; and (F) the balance due thereunder, and attaching copies of
each such written subcontract, contract and other agreement. Borrower shall
also furnish a final construction completion schedule for approval by the
Authority.

 

(c)             Borrower shall have
provided to the Authority for its review and approval a copy of the fully
executed contract for the construction of the Renovations (the “Construction
Contract”) with Borrower’s
general contractor (the “Contractor”), and any principal subcontracts. The
Construction Contract and such other principal contracts as determined by the
Authority shall be collaterally assigned to the Authority pursuant to
agreements satisfactory to the Authority. The Construction Contract and principal
subcontracts must provide a minimum one-year warranty of all work and against
latent defects.

 

(d)             Borrower shall have
obtained and delivered to the Authority all necessary building permits issued
by the appropriate governmental authority for all Renovations.

 

(e)             Borrower shall have
delivered evidence of its policy of builder’s all risk insurance and the
Contractor’s policy of commercial general liability insurance in accordance
with the provisions of the Commitment.

 

(f)              All materials
incorporated in the Improvements shall have been purchased so that the absolute
ownership thereof shall become vested
in Borrower immediately upon delivery thereof to the Property or installation
in the Improvements.

 

(g)             Neither the
Improvements nor any other part of the Property shall have been materially
injured or damaged by any casualty, or condemned or threatened with
condemnation.

 

(h)             The Authority shall
have been furnished with an endorsement to the title insurance policy issued by
Land Title Guarantee Company (the “Title Company”) disclosing no additional
exceptions to title to the Property or Improvements and increasing the amount
of the coverage equal to the amount of the advance requested plus the total of
all prior advances and deleting the mechanic’s and materialmen’s lien exception
with respect thereto.

 

2

 

(i)              Borrower shall be
in compliance with all governmental regulations pertaining to the zoning,
construction, maintenance and operation of the Improvements.

 

(j)              The Authority shall
have inspected the work in place and determined that all Renovations completed
to the date of the request for an advance have been performed in accordance
with the Plans in a good and workmanlike manner and that the Renovations
theretofore completed are of a value reasonably determined by the Authority to
be not less than the amount theretofore disbursed, plus the amount requested.
The Authority and its agents shall have the right of entry and free access to
the Improvements during normal business hours and the right to inspect all work
done, and materials, equipment and fixtures furnished, installed or stored in
and about the Improvements and to inspect all books, contracts and records of
the Borrower.

 

(k)             The Loan shall be
and remain in balance. The Loan shall be deemed to be in balance only when the
undisbursed proceeds of the Loan (after provision for reserves, fees, expenses
and other deposits required by the Authority) equal or exceed the amount
necessary (based on the Authority’s estimate of the cost to complete
construction of the Renovations) to pay for all work completed and all
materials delivered, for which payment has not been made, and the cost of
completing the Renovations in accordance with the Plans.

 

(l)              Changes in the
Plans, or changes by altering or adding to the work contemplated, or orders for
extra work must have received the prior written approval of the Authority.

 

4.             Disbursement of Loan Proceeds. The Loan proceeds,
as well as any funds that may be deposited by the Borrower pursuant to the
terms hereof, shall be held by the Authority and disbursed through the Escrow
Agent from time to time in accordance with the following:

 

(a)             Except for the
initial disbursement to be made by the Authority at closing of the Loan to fund
the Borrower’s acquisition of the Property and Improvements, the Borrower shall
make applications
for disbursements of the Loan proceeds (each a “Draw Request”) in accordance
with the Disbursement Agreement.

 

(b)             If, at any time a
mechanic’s lien is filed against the Property and Improvements or a notice of
intent to file a mechanic’s lien is filed which is not released or otherwise satisfied
to the Authority’s satisfaction, or if the Borrower fails to comply with any of
the other terms, conditions and provisions of this Agreement, or if the
Authority determines, which determination shall be binding on Borrower, that
the materials furnished or work performed do not comply with the Plans, or if
the Authority determines that the work done at that particular stage of
construction has not been done in a good and workmanlike manner, or if Borrower
is in
any way in default under the Loan Documents, the Authority may, at its option,
refuse to make a disbursement pursuant to any Draw Request until such
conditions have been remedied to the satisfaction of the Authority and may
exercise its other rights and remedies under the Loan Documents.

 

(c)             If the Authority
determines that the Loan is not in balance and there are insufficient
undisbursed Loan proceeds to enable the Borrower to complete the construction
of the Renovations, or make any other payments required herein or under the
Loan Documents, including but not limited to the payment of all items described
in paragraph (f) of this Section 5 (the “Other Costs”), or if there
are insufficient funds in a line item, as shown on the Budget or Schedule of
Values, then the Authority may refuse to make any further disbursements of Loan
proceeds until Borrower shall have deposited with the Title Company an amount
(the “Borrower’s Balancing Funds”) equal to the greater of: (i) the amount
as determined and certified by a licensed architect, employed at Borrower’s
expense and approved by the Authority, as the amount required to complete the
Renovations in accordance with the Plans together with payment of the Other
Costs; (ii) the amount of any subcontracts and/or firm quotations for the
completion of any such work together with payment of the Other Costs; or (iii) an
amount determined necessary by the Authority to bring the Loan in balance. The
Borrower’s Balancing Funds

 

3

 

shall be deposited into an interest-bearing account
established by the Title Company for the purpose of disbursing the Loan
proceeds and shall for all purposes become a part of the Loan proceeds as
provided herein and in the Disbursement Agreement and shall be disbursed first
to fund Draw Requests prior to the disbursement of any further Loan proceeds.
All Borrower’s Balancing Funds are hereby pledged to secure the Loan and in the
event of default by Borrower under the Loan Documents, Borrower’s Balancing
Funds may, at the option of Lender, be applied either to the completion of the
Renovations or the amounts due to the Lender under the Loan Documents.

 

(d)             The Authority may,
without the consent of the Borrower, but with prior notice to Borrower before
disbursement, authorize the disbursement to itself from the Loan proceeds any
sums payable to the Authority by the Borrower on account of recording costs,
title insurance costs, loan fees, attorney fees, interest, loan extension fees,
insurance, taxes and inspection fees all as provided for in the Loan Documents;
provided, however, that Borrower may pay any of such items and upon furnishing
receipt evidencing such payments, shall be entitled to reimbursement from the
Loan proceeds, provided there are sufficient funds to complete the construction
of the Renovations and such items are included in the Budget.

 

5.             Additional
Conditions for Final Disbursement. In addition to the satisfaction of all other
conditions for the disbursement of Loan proceeds, the final disbursement of
Loan proceeds and retainage shall be subject to the following:

 

(a)             Receipt and
approval by the Authority of a final certificate of occupancy or other evidence
of the completion of construction and approval of the Improvements for
occupancy from the applicable governmental authority.

 

(b)             Receipt and
approval by the Authority of Certificates of completion from Borrower’s
architect stating that the Renovations have been completed substantially in
accordance with the Plans and all applicable requirements of governmental
authorities and that an authorized representative of the party executing the certificate made such periodic inspections of
the Renovations during the course of construction as it deemed necessary as the
basis of such certification, and any other evidence reasonably required by
Authority that the Renovations have been completed in compliance with all
requirements of governmental authority.

 

(c)             Such final lien
waivers, certificates and estoppels as the Authority or Title Company may
reasonably require from Borrower’s architect, general contractor, and all other contractors,
subcontractors and material suppliers retained by Borrower or Borrower’s general contractor or any
subcontractor which have performed work on the Property or provided labor, materials or
supplies in connection therewith certifying receipt of the final payment of all
sums owing to each of such parties from Borrower with respect to the
construction and stating that each such party has no claim against Borrower,
the construction or any Loan funds arising out of or in connection with such work,
labor, materials or supplies.

 

(d)             An affidavit and
indemnity duly executed by Borrower stating that each person providing any
material or performing any work in connection with the construction for
Borrower, the general contractor and all subcontractors has been paid in full
or will be paid in full from the proceeds of such advance, and that lien
waivers have been received from all contractors, subcontractors and
suppliers who have performed work or supplied materials in connection with the
construction of the construction for Borrower, the general contractor and all
subcontractors.

 

(e)             The Authority
agrees that if upon final completion of the Renovations the total actual costs
of the acquisition and renovation of the Property and Improvements is less than
the amount estimated as of the execution of the Commitment and therefore the
Borrower’s equity advanced at closing is more than the fifteen percent (15%) of
such costs required in the Commitment, the Authority agrees to refund the
amount of such excess equity to Borrower from the Loan proceeds, less any Cost
of Funds Reimbursement due to the Authority pursuant to the Note if the final
amount advanced under the Loan is less than $6,750,000.

 

4

 

6.             Commencement and
Completion of Construction. Borrower shall commence the Renovations no later
than sixty (60) days after the date hereof, but in no event prior to the
satisfaction of the conditions to commencement of the Renovations set froth in Section 3
hereof, and shall prosecute the construction or rehabilitation with due
diligence and shall complete the Renovations by no later than December 8, 2008 (the “Completion Date”),
in strict compliance with the Plans and applicable rules and regulations
and in a good and workmanlike manner. Should the costs to complete the
Renovations exceed  the remaining Loan
proceeds, Borrower hereby agrees to complete and pay for the remaining
Renovations on or before the Completion Date.

 

7.             Representations,
Warranties and Covenants of Borrower. The Borrower represents and warrants to, and
covenants and agrees with the Authority as of the date of any disbursement
hereunder as follows:

 

(a)             The Borrower is a
corporation formed under the laws of the State of Delaware and is validly
organized, existing and in good standing under said laws and is duly qualified
to do business under the laws of the State of Colorado.

 

(b)             The Borrower has
full power to enter into and perform its obligations under this Agreement, the
Note, and the Loan Documents. The execution and delivery of this Agreement, the
Note, and the Loan Documents and the performance and observance of their terms,
conditions and obligations have been duly authorized by all necessary action on
the part of the Borrower. This Agreement, the Note, and the Loan Documents
constitute, and any other agreement required hereby will constitute, when
executed and delivered by the Borrower, to the Authority, valid and binding
obligations of the Borrower enforceable in accordance with their terms.

 

(c)             The financial
statements of the Borrower delivered to the Authority continue to fairly
represent the financial condition of the Borrower and no material adverse
change has occurred in the conditions reflected therein since its date. No
additional material obligations have been entered into by the Borrower since the date of its financial
statements other than as disclosed to the Authority in writing.

 

(d)             There is no default on the part of the
Borrower under this Agreement or any Loan Document and no event has occurred that with notice or the passage
of time or both would constitute a default hereunder or under any such
document.

 

(e)             The construction of
the Renovations and the proposed use thereof, comply with all applicable
zoning, environmental protection, use and building codes, laws, regulations and
ordinances. The Plans have been approved by all applicable governmental
authorities and/or architectural control committees, and with respect to the
Property and Improvements, Borrower has no knowledge of any violations of any
laws, ordinances, codes, requirements, orders or covenants of any governmental
entity, agency, instrumentality or association having jurisdiction over the
Property.

 

(f)              All utility
services and facilities necessary for the construction of the renovations in
the Improvements and the full enjoyment thereof are available at the boundaries
of the Property. All utility
companies and governmental authorities have agreed to serve the Property with
utility services and facilities, and any required utility taps have been issued
by the appropriate governmental authority and/or utility companies. All roads
necessary for the full utilization of the Property and Improvements for their
intended purposes have been completed and the necessary rights of way therefor
have been dedicated for public use and accepted by the appropriate governmental
authority.

 

(g)             All the necessary
licenses, authorizations, consents, approvals and permits required for the
development of the Property and construction or rehabilitation of the
Improvements thereon have been obtained.

 

5

 

(h)             Borrower shall
expend the Loan proceeds received hereunder solely for the purpose of paying
costs identified in the Budget and shall in no event use the Loan proceeds for
any other purpose.

 

(i)              Borrower shall
correct any defect in the Renovations and Improvements or any deviation from
the Plans not approved by the Authority. The advance of any Loan proceeds shall
not constitute a waiver of the right of the Authority to require compliance
with this covenant with respect to any such defects or deviations from the
Plans not theretofore discovered by the Authority.

 

(j)              The Improvements do
not, and when renovated will not, encroach upon or overhang any easement or
right-of-way, or adjoining land, and are or will be wholly within any building
restriction and/or set back lines.

 

(k)             Borrower shall, at
the completion of the Renovations, provide the Authority with a certification
of actual costs, executed by the Borrower and its Architect.

 

(l)              Borrower shall not
amend the Construction Contract, any principal subcontract, or the contract
with Borrower’s Architect, without the prior written consent of the Authority.

 

(m)            At all times, the
outstanding balance on the Loan shall be no more than eighty-five
percent (85%) of the lesser of the cost of the Property plus the Renovations or the “as
completed” appraised value of the Property, as renovated.

 

8.             Events of Default. The occurrence of
any one or more of the following events or existence of one or more of the
following conditions, with respect to the Borrower, shall constitute an Event
of Default under this Agreement:

 

(a)             There shall occur
an event of default under the terms of the Note, this Agreement, any
other Loan Documents or any other document executed in connection herewith.

 

(b)             If the Borrower at
any time prior to the completion of the Renovations abandons the same or ceases
work thereon for a period of more than twenty (20) days or fails to complete
the construction or rehabilitation of the Improvements strictly in accordance
with the Plans, except as such failure or cessation of work is due to matters
not within the control of the Borrower, or makes material changes in the Plans
without first securing the written approval of the Authority, or otherwise
fails to comply with the terms hereof.

 

(c)             Any representation
or warranty made in writing to the Authority herein or in connection with the
making of the Loan, or any certificate, statement or report made in compliance
with this
Agreement by the Borrower shall prove at any time to have been incorrect in any
material respect when made; or the Borrower shall fail to perform or observe any covenant contained
herein and such failure shall not be cured within thirty (30) days after the
Borrower has been notified of such failure by the Authority.

 

(d)             The Borrower shall
make an assignment for the benefit of creditors, file a petition in bankruptcy,
be adjudicated insolvent or bankrupt or admit in writing the inability to pay
debts as they mature, petition or apply to any tribunal for the appointment of
a receiver or any trustee or similar officer for the Borrower or a substantial
part of the assets of the Borrower, or shall commence any proceeding under any
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or
liquidation law or statute of any jurisdiction, whether now or hereafter in
effect, or if there shall have been filed any such petition or application, or
any such proceeding shall have been commenced against the Borrower, that
remains undismissed for a period of sixty (60) days or more; or the Borrower by
any act or omission shall indicate its consent to, approval of or acquiescence
in any such petition, application or proceeding, or the appointment of a
receiver of or any trustee or similar officer for the Borrower or any
substantial part of any 

 

6

 

of the properties of the Borrower, or shall suffer
any such receivership or trusteeship to continue undischarged for a period of
sixty (60) days or more; or any judgment, writ, warrant of attachment or
execution or similar process shall be issued or levied against a substantial
part of the property of the Borrower and such judgment, writ or similar process
shall not be released, vacated or fully bonded within sixty (60) days after its
issue or levy.

 

(e)             Any action shall be
taken by any governmental authority that would materially and adversely affect
the use or occupation of the Improvements for their intended purpose and such
action shall not have been reversed or remedied within a period of ten (10) days
from the taking thereof, or such additional time as such governmental authority
may grant to Borrower to secure a reversal or remedy without enforcement of its
initial action.

 

(f)              A lien or other encumbrance (other than as permitted
by the Loan Documents) shall be filed against the Property or Improvements or
any other security for the Loan and the same shall not have been removed or the
Borrower shall not have posted adequate security therefor within ten (10) days
after the filing thereof.

 

(g)           This Agreement or the Note, or any Loan
Document shall at any time for any reason cease to be in full force and effect
or shall be declared to be null and void, or the validity or enforceability
thereof shall be contested by the Borrower, or the Borrower shall deny that it
has any or further liability or obligation hereunder or thereunder.

 

(h)           Borrower shall execute any security agreement
with respect to any materials, fixtures or articles used in the construction of
the Renovations or with respect to any articles of personal property located
therein and secured by the Loan Documents, or such articles secured by the Loan
Documents are purchased pursuant to any conditional sales contract or other
security agreement.

 

(i)            The Authority shall
determine that the estimated cost to complete the construction of the
Renovations is in excess of the amount of funds available to Borrower to
complete and pay for such construction and items, and such deficiency is not
corrected within ten (10) days after notice to Borrower by the deposit with
the Authority of such amounts which when added to the undisbursed Loan funds
shall be
sufficient to enable the completion and payment of the costs of construction of
the Renovations.

 

(j)            The Borrower defaults in the performance of any
term, covenant, or condition to be performed hereunder and such default is not
remedied within twenty (30) days, unless a longer period of time is reasonably
required to cure the default, from and after written notice from the Authority
to the Borrower, specifying said default.

 

9.             Remedies.

 

(a)           Upon
the occurrence of any Event of Default that is not cured as otherwise provided
herein or in the other Loan Documents, and at any time thereafter, the
Authority may, at its option, terminate this Agreement and shall be under no
further obligation to make payments or disbursements hereunder or take any
other action with respect to this Agreement. If the Authority so elects to
terminate this Agreement, it may use and apply any undisbursed Loan proceeds
together with any Borrower’s Balancing Funds, regardless of the purpose for
which such funds were deposited, in such manner and for such purposes as it may
determine. The Loan, with all accrued interest and other amounts payable
hereunder, shall, at the option of the Authority, become immediately due and
payable without presentment, demand, protest or other notice of any kind all of
which are expressly waived by the Borrower. The Authority may proceed with
every remedy available at law or equity or provided for herein or in any
document executed in connection herewith, and all expenses incurred by the
Authority and any assignee of the Authority in connection with any remedy shall
be deemed indebtedness of the Borrower to the Authority or such assignee and a
part of the Secured Obligations (as defined in the Deed of Trust). 

 

7

 

The Authority may apply the proceeds from any
collateral for the Loan or from any other source against any of the Secured
Obligations as and in any order it sees fit.

 

(b)             If the Authority
elects not to terminate this Agreement, it may enter into possession of the
premises and perform any and all work and labor necessary to complete the
Renovations substantially according to the Plans. All sums expended by the
Authority to complete the Renovations shall be deemed to have been paid to the
Borrower and secured by the Deed of Trust. For this purpose, the Borrower
hereby constitutes and appoints the Authority its true and lawful attorney-in-fact,
with full power of substitution in the premises, to complete the construction
or rehabilitation of the Improvements in the name of the Borrower. The Borrower
hereby empowers the Authority as follows: (i) to use any undisbursed Loan
proceeds and Borrowers Balancing Funds, including any balance which may be held
in escrow, for the purpose of completing the Renovations in the manner called
for by the Plans; (ii) to make such additions, changes and corrections in
the Plans as shall be necessary or desirable to complete the Renovations in
substantially the manner contemplated by the Plans; (iii) to employ such
contractors, subcontractors, agents, architects and inspectors as shall be
required for said purposes; (iv) to pay, settle or compromise all existing
bills and claims which may be liens against the mortgaged property, or as may
be necessary or desirable for the completion of the Renovations, or for
clearance of title; (v) to execute all applications and certificates in
the name of the Borrower which may be required by any of the contract
documents; (vi) to prosecute and defend all actions or proceedings in
connection with the mortgaged premises or the Renovations and to take such
action and require such performance as it deems necessary under the accepted
guaranty of completion; and (vii) to do any and every act which the
Borrower might do in its own behalf. It is further understood and agreed that
this power of attorney, which shall be deemed to be a power coupled with an
interest, cannot be revoked. The Borrower hereby assigns and quit claims to the
Authority all Loan proceeds unadvanced under the Note and all Borrower’s
Balancing Funds for use in completing the Renovations, such assignment to
become effective only in case of the Borrower’s uncured default.

 

(c)             No delay or failure
of the Authority in the exercise of any right or remedy provided for hereunder
shall be deemed a waiver of the right by the Authority and no exercise or
partial exercise or waiver of
any right or remedy shall be deemed a waiver of any further exercise of such
right or remedy or of any other right or remedy that the Authority may have.
The enforcement of any rights of the Authority as to any security for the Loan
shall not affect the rights of the Authority to enforce payment of the Loan and to recover judgment for any portion
thereof remaining unpaid. The rights and remedies herein expressed are
cumulative and not exclusive of any right or remedy that the Authority shall
otherwise have.

 

10.           Rights of the
Authority. The Authority may assign, negotiate, pledge or otherwise hypothecate this Agreement, the Note and the
Loan Documents or any of its rights and security hereunder or thereunder, in
whole or in part. In case of such assignment, the Borrower will accord full
recognition thereto and hereby agrees that all rights and remedies of the
Authority in connection with the interests so assigned shall be enforceable
against the Borrower by the assignee thereof.

 

11.           Miscellaneous
Provisions.

 

(a)             Based upon periodic
physical inspections, the documentation for Loan advances, and upon information
supplied by the Contractor,
the Borrower shall monitor progress of construction under the Construction
Contract and under each subcontract and shall make a monthly assessment as to
the possibility that there may be cost overruns in connection with such
contract or subcontracts. The Borrower shall promptly notify the Authority of
any such potential cost overruns.

 

(b)             Borrower shall be
liable to the Authority for all sums paid or incurred in excess of the amount
of the Loan for the completion of the Renovations, whether the same shall be
paid or incurred pursuant to provisions of this Agreement or the other Loan
Documents, or otherwise and for all accrued interest. All payments made or
liabilities incurred in excess of the amount of the Loan by the Authority under
this Agreement or other Loan Documents of any kind whatsoever, including
attorneys’ fees, shall be

 

8

 

paid by Borrower to the Authority upon demand with
interest at the default rate set forth in the Note to the date of payment to
the Authority and all of the foregoing, including interest, shall be deemed and
shall constitute advances under this Agreement.

 

(c)             Any obligation of
the Authority to make advances hereunder is imposed solely and exclusively for
the benefit of Borrower and no other person, firm or corporation shall, under
any circumstances, be deemed to be a beneficiary of such condition, nor shall
it have any derivative claim against the Authority.

 

(d)             Neither this
Agreement nor any provision hereof may be changed, waived, discharged, or terminated
orally and may only be modified or amended by an instrument in writing, signed
by the parties hereto.

 

(e)             Inspections and
approval of the Plans, the Renovations, the Improvements and the workmanship
and materials used therein impose no responsibility or liability of any nature
or kind whatsoever on the Authority to Borrower and/or any third parties. The
parties hereby expressly agree and acknowledge that their relationship is that
of lender and borrower and that no other relationship, including that of joint
venture, partnership or other common enterprise is created by this
Agreement or the other Loan Documents.

 

(f)              All rights, powers,
and remedies herein given to the Authority are cumulative and not alternative,
and are in addition to all other statutes or rules of law. Any forbearance
or delay by the Authority in exercising the same shall not be deemed to be a
waiver thereof and the exercise of any right or partial exercise thereof shall
not preclude the further exercise thereof and the same shall continue in full
force and effect until specifically waived by an instrument in writing executed
by the Authority. All representations, warranties and covenants by Borrower
shall survive the making of the advances of the Loan and the provisions hereof
shall be binding upon Borrower, its successors and assigns and inure to the
benefit of the Authority, its successors and assigns.

 

(g)             During the term of
the Loan, Borrower shall not, without the prior written consent of the
Authority, create or incur or suffer to be created or incurred any encumbrance,
mortgage, pledge, lien or charge of any kind upon the Property or the
Improvements other than encumbrances permitted hereby.

 

(h)             Borrower agrees
that, in the event there is any conflict between the terms and conditions of
this Agreement and the Note and Deed of Trust, the Note and Deed of Trust shall
prevail.

 

(i)              All notices
required under this Agreement shall be in writing and shall be deemed to have
been sufficiently given or served when presented personally or when deposited
in the United States mail, by registered or certified mail, addressed to the
parties at the address set forth in the Deed of Trust. Such addresses may be
changed by notice to the other party given in the same manner as provided in
the Deed of Trust.

 

(j)              This Agreement and
all matters of construction and performance relating thereto shall be governed
by and construed and interpreted in accordance with the laws of the State of
Colorado.

 

(k)             This Agreement may
be executed in several counterparts.

 

(l)              The rights and
obligations of Borrower under this Agreement may not be assigned without the
prior written consent of the Authority.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first above written. 

 

9

 

	
   

  	
   

  	
  AUTHORITY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Colorado Housing and Finance Authority

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Charles L. Borgman

  
	
   

  	
   

  	
   

  	
  Charles L. Borgman, General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Ascent
  Solar Technologies, Inc., a Delaware 
   corporation

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ R. Scott Burrows

  	
   

  	
  By:

  	
  /s/ Matthew B. Foster

  
	
   

  	
  R. Scott Burrows, Secretary

  	
   

  	
   

  	
          Matthew
  B. Foster, President

  
							

 

10

 

EXHIBIT A

 

(Attached to and forming part of a Construction Loan
Agreement dated as of February 8, 2008,
by and between the Colorado Housing and Finance Authority and Ascent Solar Technologies, Inc., a Delaware
corporation.)

 

LEGAL DESCRIPTION

 

Lot 4, Block 7, Washington Square Subdivision
- Amended, County of Adams, State of Colorado.

 

11

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