Document:

EXHIBIT 10.50

 

LEASE CONTENTS

1.  PARTIES

2.  PREMISES LEASED

3.  TERM OF LEASE

4.  POSSESSION

5.  RENT

6.  SECURITY DEPOSIT

7.  USES OF PREMISED

8.  COMPLIANCE WITH LAW

9.  CONDITION OF PREMISES

10. INSURANCE

11. INDEMNITY

12 .EXEMPTION OF LESSOR FROM LIABILITY

13. LESSOR'S OBLIGAIONS

14. LESSEE'S OBLIGATIONS

15. SURRENDER OF PREMISES

16. ALTERATIONS AND TENANT IMPROVEMENTS

17. TRADE FIXTURES

18. LIENS

19. UTILITIES

20. TAXES

21. LESSOR'S RIGHT OF ENTRY

22. CONDEMNATION

23. ASSIGNMENT AND SUBLEASES

24. SUBORDINATION OF LEASE

25. LESSEE'S BANKRUPTCY

26. LESSEE'S BREACH

27. LESSOR'S LIEN

28. PARTIAL AND TOTAL DESTRUCTION

29. CANCELLATION OF INSURANCE; INCRESE OFINSURANCERATES

30. SURRENDER

31. ATTORNEY'S FEES

32. NOTICE TO LESSEE

33. NOTICE TO LESSOR

34. WAIVER

35. HOLDING OVER

36. LATE CHARGES

37. INTEGRATED AGREEMENT; MODIFICATION

38. HAZARDOUS MATERIALS

39. OPTION TO RENEW

40. CONFIDENTIALITY

41. PROVISIONS ARE COVENANTS AND CONDITIONS

42. SIGNS

43. FLOODING

44. PREMISES

45. POSESSION

46. OBSTRUCTION

47. AGREEMENT WITH THE CITY OF SAN ANSELMO

48. SUCCESSORS

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1.            PARTIES.  This Lease, dated for reference purposes only June 5, 2014,   (hereafter referred to as "Lease"), is made by and between Four Kays, (hereafter referred to as "Lessor"), and Touchpoint, Inc., (hereafter referred to as "Lessee").

2.            PREMISES LEASED.  Lessor hereby leases to Lessee and Lessee leases from Lessor, for the term, at the rental and upon all of the conditions set forth herein, a portion of the building commonly known as 249 Sir Francis Drake Blvd. located at 249 Sir Francis Drake Blvd., San Anselmo, County of Marin, California, consisting of approximately 370 square feet.

3.            TERM OF LEASE.  The term of this Lease shall be for a period of Two (2) years and Two (2) months commencing on July 1, 2014 and terminating on August 31, 2016.

4.            POSSESSION. Lessee shall be entitled to take possession July 1, 2014 after execution of this Lease.

 

5.            RENT.  Lessee shall pay as rent for the Premises the rent amount set forth below, commencing 0 days after this Lease is signed by Lessee, and continuing on the first day of each and every month during the term of this Lease. Rent shall be payable to Four Kays, in care of John Kaufman, whose address is:  2 Magnolia Ave., San Anselmo, CA.

5.1          Minimum Monthly Rent.  Lessee shall pay to Lessor as minimum monthly rent without deductions, set-off, prior notice or demand, the  sum of $840.  The minimum monthly rent shall be subject to an annual cost of living adjustment. The minimum monthly rent provided for in this subparagraph 5.1 shall be subject to an adjustment as of the first day of July of each year of the term commencing July 1, 2015 and each July 1 thereafter as follows:

5.2            The base for computing the adjustment is the All Urban Consumer Price Index (1984 equals 100) for the San Francisco Bay Area published by the United States Department of Labor, Bureau of Labor Statistics (Index) which was published for July, 2014 (Beginning Index). If the Index published for July the following year, (Extension Index) has increased over the Beginning Index, the minimum monthly rent for the following year commencing in July until the next adjustment shall be set by multiplying the minimum monthly rent set forth in subparagraph (5.1) above by a fraction, the numerator of which is the Extension Index and the denominator which is the Beginning Index.  In no case shall the minimum monthly rent be less than the minimum monthly rent set forth in subparagraph (5.1) above.  Prior to each July, Lessor shall notify Lessee in writing of the new adjusted minimum monthly rent, however, if the CPI information is not available by July of each year, Lessor shall use the most recently available CPI information.

 

If the Index is changed so that the base year differs from that used as of July 2014, the Index shall be converted in accordance with the conversion factor published by

 

 

 

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the United States Department of Labor, Bureau of Labor Statistics.  If the Index is discontinued or revised during the term such other government index or computation with which it is replaces shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

5.3            Monthly rent payable during any option year shall be payable as determined in Paragraph 39.

 

5.4            Monthly rent is due on the first day of each month and shall be considered late if received or if postmarked (if payment is made by U. S. Mail) after the fifth (5th) day of each month, and SHALL BE SUBJECT TO A LATE FEE EQUAL TO TEN PERCENT (10%) OF THE AMOUNT DUE (see Paragraph 36).  ______ (Lessee initials)

6.            SECURITY DEPOSIT.

 

6.1            Upon execution of this Lease, Lessee shall deposit with Lessor the sum of $1,680.00, as security for the faithful performance of the Lease for all the terms, covenants and conditions of this Lease, to be kept and performed by Lessee during the term hereof.  If at any time during the term of this Lease any of the rent herein required shall be overdue and unpaid, then the Lessor may, at Lessor's option, appropriate and apply any portion of said deposit to the payment of any such overdue rent or other sum.  In the event of the failure of Lessee to keep and perform all of the terms, covenants and conditions of this Lease to be kept and performed by Lessee, then at the option of Lessor said Lessor may appropriate and apply so much of said deposit as may be necessary to compensate Lessor for all loss or damage sustained or suffered by Lessor due to such breach on the part of the Lessee.  Should the entire deposit, or any portion thereof, be so apportioned and applied by Lessor for the payment of overdue rent or other sums due and payable to Lessor by Lessee hereunder, then Lessee shall, upon written demand of Lessor, forthwith remit to Lessor a sufficient amount in cash to restore said security to the original security deposit.  Lessee's failure to do so within thirty (30) days after receipt of such demand shall constitute a breach of this Lease.  Should Lessee comply with all of the terms, covenants and conditions, and promptly pay all of the rental herein provided for, as the same falls due, and all other sums payable by Lessee to Lessor, said security deposit shall be repaid to Lessee upon termination of this Lease or any extension thereof.

 

6.2            Lessor shall not be required to pay Lessee interest on the security deposit, nor shall Lessor be required to place the deposit in a trustee account.

 

7.  USE OF PREMISES.

 

7.1 Lessee agrees to use and occupy the premises during the term hereof for the purpose of office and conference, storage and packaging and for no other purpose whatever without the written consent of Lessor. Lessee shall not use, or permit said premises, or any part thereof, to be used, for any purpose or purposes other than the purpose or purposes for which the said premises are hereby leased, and no use shall be

 

 

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 made or permitted to be made of the said premises, or acts done, which will increase the rate of insurance upon the building in which said premises may be located over the standard rate of insurance prevailing in the area in which the premises are located, or cause a cancellation of any part thereof, or make it impossible for Lessor to obtain an insurance policy covering said building or any part thereof.

 

7.2               Lessee shall at all times conduct business in the Premises under the name Touchpoint Inc.. Lessee acknowledges that Lessor may grant to other tenants in the Building, and may grant to additional tenants in the Building, exclusive rights to conduct certain businesses and sell certain products.  Accordingly, the permissible use set forth in this paragraph is not to be expanded except with Lessor's specific written consent, which consent Lessor will grant or deny in its sole discretion after giving consideration as such factors, by example and without limitation, tenant mix, types of products available in the Building, type of lease, and impact of use on other tenants.  Lessee shall not, without the prior express written consent of Lessor, conduct on or from the Premises any activity or other business for which Lessor may from time to time grant exclusive rights to other tenants in the Building provided Lessee is given written notice thereof and such exclusive rights are not inconsistent with the specific permissible use set forth in this paragraph.

 

7.3              In no event shall Lessor be liable to Lessee for monetary damages or for any other form of compensation in the event an existing or future tenant in the building conducts business activities similar to or in competition with Lessee.

 

8.            COMPLIANCE WITH LAW.  Lessee shall, at Lessee's expense, comply promptly with all applicable statutes, ordinances, rules, regulations, orders and requirements (including ADA requirements) in effect during the term or any part of the term hereof regulating the use by Lessee of the Premises.  Lessee shall not use or permit the use of the Premises in any manner that will tend to create waste or nuisance or, if there shall be more than one tenant of the building containing the Premises, which shall tend to disturb such other tenants.

 

9.            CONDITION OF PREMISES.  Upon taking possession of the Premises, Lessee acknowledges that the Premises are in good condition, and are in compliance with all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the Premises, and accepts this Lease subject thereto and to all matters disclosed thereby and by any Exhibits attached hereto.  Lessee shall be responsible for all tenant improvements in order to make the Premises suitable for Lessee's use.  Lessee acknowledges that neither Lessor nor Lessor's agent has made any representation or warranty as to the suitability of the Premises for the conduct of Lessee's business.

 

10. INSURANCE

 

10.1  Landlord shall maintain, as a part of Operating Expenses, fire and extended coverage insurance on the Building in an amount equal to the full replacement cost of the Building, subject to such deductibles as Landlord may determine.  Landlord 

 

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shall not be obligated to insure, and shall not assume any liability of risk of loss for, any of Tenant's furniture, equipment, machinery, goods, supplies, improvements or alterations upon the Premises. Such insurance shall be maintained with an insurance company selected, and in amounts desired, by Landlord or Landlord's mortgagee, and payment for losses thereunder shall be made solely to Landlord subject to the rights of the holder of any mortgage or deed of trust which may now or hereafter encumber the Building. Landlord shall also maintain, as a part of Operating Expenses, commercial general liability insurance in an amount not less than $1,000,000.00 per occurrence and $2,000,000.00 general aggregate, with an insurance company selected by Landlord. Additionally Landlord may maintain such additional insurance, including, without limitation, earthquake insurance, flood insurance, liability insurance and/or rent insurance, as Landlord may in its sole discretion elect. The cost of all such additional insurance shall also be part of the Operating Expenses. Any or all of Landlord's insurance may be provided by blanket coverage maintained by Landlord or any affiliate of Landlord under its insurance program for its portfolio of properties or by Landlord or any affiliate of Landlord's program of self insurance, and in such event Operating Expenses shall include the portion of the reasonable cost of blanket insurance or self-insurance that is allocated to the Building.

 

10.2 Tenant, at its own expense, shall maintain with licensed insurers authorized to do business in the State of California and which are rated A- and have a financial size category of at least VIII in the most recent Best's Key Rating Guide, or any successor thereto (or if there is none, an organization having a national reputation), (a) commercial general liability insurance, including Broad Form Property Damage and Contractual Liability with the following minimum limits:  General Aggregate $1,000,000.00; Products/Completed Operations Aggregate $1,000,000.00; Each Occurrence $1,000,000.00; Personal and Advertising Injury $1,000,000.00; Medical Payments $5,000.00 per person, (b) Workers' Compensation with statutory limits; (c) Employer's Liability insurance with the following limits:  Bodily injury by disease per person $1,000,000.00; Bodily injury by accident policy limit $1,000,000.00; Bodily injury by disease policy limit $1,000,000.00; (d) property insurance on special causes of loss insurance form covering any and all personal property of Tenant including but not limited to alterations, improvements, betterments, furniture, fixtures and equipment in an amount not less than their full replacement cost, with a deductible not to exceed $5,000.00; and at all times during the Term, such insurance shall be maintained, and Tenant shall cause a current and valid certificate of such policies to be deposited with Landlord.  If Tenant fails to have a current and valid certificate of such policies on deposit with Landlord at all times during the Term and such failure is not cured within three (3) business days following Tenant's receipt of notice thereof from Landlord, Landlord shall have the right, but not the obligation, to obtain such an insurance policy, and Tenant shall be obligated to pay Landlord the amount of the premiums applicable to such insurance within ten (10) days after Tenant's receipt of Landlord's request for payment thereof.  Said policy of liability insurance shall name Landlord, Landlord's managing agent and Tenant as the insureds and shall be noncancellable with respect to Landlord except after thirty (30) days' written notice from the insurer to Landlord.

 

 

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10.3  Tenant shall adjust annually the amount of coverage established in Paragraph 10.2 hereof to such amount as in Landlord's reasonable opinion, adequately protects Landlord's interest; provided the same is consistent with the amount of coverage customarily required of comparable tenants in Comparable Buildings.

 

10.4 Notwithstanding anything herein to the contrary, Landlord and Tenant each hereby waives any and all rights of recovery, claim, action, or cause of action against the other, its agents, employees, licensees, or invitees for any loss or damage to or at the Premises or the Building or any personal property of such party therein or thereon by reason of fire, the elements, or any other cause which would be insured against under the terms of (i) fire and extended coverage insurance or (ii) the liability insurance referred to in Paragraph 10.2, to the extent of such insurance, regardless of cause or origin, including omission of the other party hereto, its agents, employees, licensees, or invitees.  Landlord and Tenant covenant that no insurer shall hold any right of subrogation against either of such parties with respect thereto.  This waiver shall be ineffective against any insurer of Landlord or Tenant to the extent that such waiver is prohibited by the laws and insurance regulations of the State of California.  The parties hereto agree that any and all such insurance policies required to be carried by either shall be endorsed with a subrogation clause, substantially as follows:  "This insurance shall not be invalidated should the insured waive, in writing prior to a loss, any and all right of recovery against any party for loss occurring to the property described therein, " and shall provide that such party's insurer waives any right of recovery against the other party in connection with any such loss or damage.

 

In the event Tenant's occupancy or conduct of business in or on the Premises, whether or not Landlord has consented to the same, results in any increase in premiums for the insurance carried from time to time by Landlord with respect to the Building, Tenant shall pay any such increase in premiums as Rent within ten (10) days after bills for such additional premiums shall be rendered by Landlord.  In determining whether increased premiums are a result of Tenant's use or occupancy of the Premises, a schedule issued by the organization computing the insurance rate on the Building showing the various components of such rate, shall be conclusive evidence of the several items and charges which make up such rate.  Tenant shall promptly comply with all reasonable requirements of the insurance authority or of any insurer now or hereafter in effect relating to the Premises.

 

10.5  Lessor will carry a flood insurance policy that covers flood damage to the premises which are normally the responsibility of the tenant (Paragraph 14).  Carpets are a tenant responsibility in a flood as is all tenant property, installed and not. In case of a flood, tenant shall immediately clear the premises of any tenant property needed to access repairs.

 

11.            INDEMNITY.  Lessee shall indemnify, defend and hold harmless Lessor from and against any and all claims arising from Lessee's use of the Premises, or from the conduct of Lessee's business or from any activity, work or thing done, permitted or suffered by Lessee in or about the Premises or elsewhere and shall further indemnify and 

 

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hold harmless Lessor from and against any and all claims arising from any breach or default in the performance of any obligation on Lessee's part to be performed under the terms of this Lease, or arising from any negligence of Lessee, or any of Lessee's agents, contractors or employees and from and against all costs, attorneys' fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon, and in case any action or proceeding be brought  against Lessor by reason of any such claim, Lessee, upon notice from Lessor, shall defend the same at Lessee's expense by counsel satisfactory to Lessor.  Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises arising from any cause and Lessee hereby waives all claims in respect thereof against Lessor.

 

12.            EXEMPTION OF LESSOR FROM LIABILITY.  Lessee, as a material part of the consideration to be rendered to Lessor, hereby waives all claims against Lessor for damage to goods, ware and merchandise and all other personal property in, upon or about said Premises and for injuries to persons in or about said Premises, from any cause arising at any time and Lessee will hold Lessor exempt and harmless for any damage or injury to any person or to the goods, wares and merchandise and all other personal property of any person arising from the use of the Premises by Lessee or from the failure of Lessee to keep the Premises in good condition and repair as herein provided.

 

13.            LESSOR'S OBLIGATIONS.  Except as otherwise provided in this Lease,   Lessor shall keep in good order, condition and repair the foundations, exterior walls (excluding the interior surface of exterior walls and excluding all windows, doors, plate glass and show cases), and plumbing systems, and the roof of the Premises.  However, Lessor shall not be responsible for maintenance if the defect or repair is caused by the negligence of Lessee or Lessee's invitees.  Lessor shall not be responsible to Lessee or any other party whatsoever for any damage or injury caused by Lessor's failure to keep or maintain the foregoing in good repair unless Lessee shall forthwith give Lessor written notice of the need to repair said portions of said Premises and then only if Lessor fails to make said repairs within a reasonable time after receiving written notice.

 

14.            LESSEE'S OBLIGATIONS.  Lessee, at Lessee's sole cost and expense shall repair and maintain the interior portion of the Premises, whether or not such portion of the Premises requiring repair, or the means of repairing the same are reasonable or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements or the age of such potion of the Premises, (except those portions which Lessor agrees to maintain as set forth in paragraph 13 above) together with the appurtenances thereto, including but not limited to all glass, glazing, skylights, signs, painting and/or decorating of interior walls and partitions, doors,   and electrical system, and all interior building appliances, lighting fixtures, ceilings, floors (including carpeting) and agrees to keep the same in a good, safe and sanitary condition.  Lessee hereby waives all right to make repairs at the expense of Lessor as provided in §1941 and 1942 of the California Civil Code and Lessee waives any rights which Lessee may have under said sections.

 

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14.1            The foregoing notwithstanding, Lessee will not be responsible for any plumbing or sewage facilities that may be embedded in concrete or underground excepting where such repairs are required by reason of Lessee's neglect or Lessee's operation.

 

14.2            Lessee shall not have the right to place, construct, inscribe or paint on the Premises, including the exterior walls and roof of the building, any sign, without the prior written consent of Lessor first had and obtained.

 

14.3            Lessee shall not allow refuse, garbage or trash to accumulate outside the Premises, sidewalks, and common areas adjacent to the Premises.

 

15.            SURRENDER OF PREMISES.  Lessee agrees that upon the last day of the term hereof or upon sooner termination of this Lease to surrender said Premises and said appurtenances to Lessor in the same condition as received by Lessee, ordinary wear and tear excepted.

 

16.            ALTERATIONS AND TENANT IMRPOVEMENTS.

 

16.1            Lessee shall not make nor permit to be made any repairs, alterations, modifications, additions, utility installations (including power panels) in or about said Premises without the prior written consent of Lessor.  Any repairs, modifications, additions, alterations or utility installations, including power panels, made by Lessee in or about said Premises, except movable furniture and trade fixtures, shall become a part of the realty and belong to Lessor unless otherwise agreed to in writing by the parties. Carpeting installed on any surface is part of the realty and belongs to the Lessor.  Any such approved repairs, modifications, alterations, additions or utility installations shall be made at Lessee's expense.

 

16.2            As a material part of the consideration for this Lease, Lessee hereby covenants and agrees that Lessee, at Lessee's sole cost and expense, and without any cost or liability to Lessor, may remodel, renovate, and refurbish the interior of the Premises pursuant to plans and specifications to be provided to Lessor for Lessor's approval, such approval not to be unreasonably withheld.  All work shall be done in accordance with the approved plans and specifications, and all applicable building and zoning codes, ordinances, and regulations.

 

16.3            Lessee accepts and takes possession of the Premises in their present "As Is" condition and shall be solely responsible for making all improvements required for Lessee's use and occupancy.  For any improvements to be made by Lessee, during the term of this Lease, Lessee shall prepare and submit to Lessor for approval preliminary plans and specifications prepared by licensed space planners, architects, or engineers in forms suitable for obtaining building permits, covering construction work to be performed in the Premises by Lessee.  Lessor shall have a period of five (5) business days after delivery to Lessor of such plans and specifications in which to approve or disapprove the plans and specifications.  If Lessor fails to respond to Lessee within such time period, 

 

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Lessor shall be deemed to have approved the plans and specifications.  In the event any corrections are required by Lessor, Lessee shall promptly revise or correct the plans and/or specifications and shall submit such revisions or corrections to Lessor.  Approval will be evidenced by endorsement to that effect on a set of the working plans and specifications.  Lessor may refuse approval of Lessee's preliminary plans and specifications if Lessor shall determine that said plans and specifications do not conform to the high standards of design, motif, and décor adopted by Lessor and by other tenants in the Building.  All improvements to be completed by Lessee shall be completed by and pursuant to the plans and specifications approved by Lessor and prepared by space planners, architects, or engineers in forms suitable for obtaining buildings permits prior to the commencement of any work.  Lessee shall give Lessor ten (10) days notice prior to commencing any construction of improvements in order to allow Lessor the opportunity to record and post a Notice of Non-Responsibility.

 

16.4                          Lessee shall be solely responsible for and shall promptly pay all costs of designing, constructing, and installing Lessee's improvements.  "Improvements" and/or "tenant improvements" as used in this paragraph 16 shall include, without limitation, the renovation and repair of the existing construction, the installation of interior walls, partitions, floor coverings, counters, lighting fixtures, electrical and plumbing fixtures and modifications, exterior painting and modification, including permit fees, labor, materials, construction supplies, sub-contracts, and sewer and water connection fees (if any) for the Premises.  Lessee shall arrange, contract for, and supervise the construction and installation of Lessee improvements.  Lessee shall provide Lessor with a copy of the final notice of completion and/or final inspection.

 

17.            TRADE FIXTURES.  All trade fixtures, together with movable furniture may, at the end of this Lease, be moved from said Premises at Lessee's expense provided that Lessee shall pay such damage forthwith upon demand by the Lessor.  As to removal of trade fixtures, Lessor may require Lessee, at Lessee's expense, to restore said Premises to their condition as of the date of the execution of this Lease, reasonable wear and tear excepted.

 

18.            LIENS.  Lessee shall keep said Premises free of mechanic's or materialmen's judgments and all tax liens arising out of work done for or debts or taxes incurred by Lessee.  If Lessor discharges any such lien, Lessee agrees to save Lessor harmless therefrom and to pay Lessor the cost of discharging such lien with interest at ten (10) percent per annum from the date Lessor discharges such lien, together with Lessor's costs and reasonable attorneys' fees in connection with the settlement, trial or appeal of any such lien matter, payable with the next installment of rent due.

 

19.      UTILITIES.   Lessee, from the time it first enters the premises for the purpose of setting fixtures, or from the commencement of the term of this Lease, whichever date shall first occur, and throughout the term of this Lease, shall pay for gas, heat, light, power, telephone service and all other services supplied to or consumed in or on the leased premises. Lessee pays 0% of  ELECTRIC bill shared with  Marin 

 

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Coffee Roasters or Four Kays unless a sub-meter is installed in which case Lessee shall pay their proportional use of the shared bill.

 

20.            TAXES.

 

20.1            Personal Property Taxes.  Lessee shall be liable for all taxes levied against personal property and trade fixtures on or about the demised Premises, including, but without prejudice to the generality of the foregoing, shelves, counters, vaults, vault doors, wall safes, partitions, fixtures, machinery, equipment and atmospheric coolers and if any such taxes on Lessee's personal property or trade fixtures are levied against Lessor or Lessor's property, and if Lessor pays the same, which Lessor shall have the right to do regardless of the validity of such levy, or if the assessed value of Lessor's Premises is increased by the inclusion therein of a value placed on such property of Lessee and if Lessor pays the taxes based on such increased assessment, which Lessor shall have the right to do, regardless of the validity thereof, Lessee, upon demand shall, as the case may be, repay to Lessor the taxes so levied against Lessor, or the proportion of such taxes resulting from such increase in the assessment.

 

20.2 There is no 20.2

 

21.            LESSOR'S RIGHT OF ENTRY.  Lessee agrees that Lessor and Lessor's agents may enter into and upon the Premises at reasonable times for the purpose of inspecting the same and to show said Premises to prospective purchasers or for the purpose of maintaining the building in which said Premises are situated or for the purpose of making repairs, alterations or additions or utility installations to any other part of said building, including the erection and maintenance of such scaffolding, ladders, fences and props as may be required or for the purpose of posting notices of non-liability for alterations, additions, repairs or utility installations or for the purpose of placing upon the property in which said Premises are located any ordinary "For Sale" signs without any rebate of rent or liability to Lessee for damage or interference with the quiet enjoyment of said Premises; Lessee shall permit Lessor within sixty (60) days prior to the expiration of this Lease to place upon the Premises ordinary "For Lease" signs, and to show said Premises to prospective Lessees during reasonable business hours.

 

22.            CONDEMNATION.  As used herein, the word "condemned" is coextensive with the phrase "right of eminent domain," i.e., the right of people or government to take property for government use and shall include the intention to condemn expressed in writing as well as the filing of any action or proceeding for condemnation.

 

22.1            In the event that any action or proceeding is commenced for the condemnation, in exercise of the right of eminent domain, of the demised Premises or if Lessor is advised in writing by any government (federal, state or municipal) or any agency or department or bureau thereof, or any entity or body having the right or power of condemnation, of its intention to condemn said demised Premises at the time thereof, or if the demised Premises or any part or section thereof be condemned through such action, then and in any of said events:

 

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22.1.1  The term of this Lease shall continue under the terms and conditions herein specified until such time as the condemnor actually takes possession of the demised Premises, or gives either Lessor or Lessee thirty (30) days' written notice of intention to take such possession.

 

22.1.2  Lessor may, without any obligation or liability to Lessee and without affecting the validity and existence of this Lease other than as hereafter expressly provided, agree to sell and/or convey to the condemnor, without first requiring that any action or proceeding be instituted, or, if such action or proceeding shall have been instituted, without requiring any trial or hearing thereof, the Lessor is expressly empowered to stipulate to judgment therein that the demised Premises sought by the condemnor is free from this Lease and the rights of Lessee, excepting only as hereinafter in paragraph 22.1.3 provided.

 

22.1.3  Lessee shall have no claim against Lessor nor be entitled to any part of portion of the amount that may be paid or awarded as a result of the sale, for the reasons as aforesaid, or condemnation of the demised Premises, Lessee hereby assigning, transferring and setting over unto Lessor its interest, of any, which Lessee would but for this provision have in, to, upon or against the demised Premises, or the amount agreed to be paid and/or awarded and paid to Lessor, excepting only that Lessee shall be entitled to seek to recover against the condemnor, and Lessor shall have no claim therefor or thereto in the following:

 

22.1.3.1  Lessee's trade fixtures and any removable structures and improvements erected and made by Lessee to or upon the demised Premises which Lessee is or shall be entitled to remove upon the expiration of the term of this Lease.

 

22.1.3.2  Costs of removing Lessee's business from the demised Premises to a new location.

 

22.2            Each party waives the provision of CCP §1265.130 allowing either party to petition the Superior Court to terminate this Lease in the event of a partial taking of the Premises.

 

23.            ASSIGNMENT AND SUBLEASES.  Lessee shall not assign this Lease or any interest therein and shall not sublet said Premises or any part thereof or any right or privilege appurtenant thereto, or suffer any other person (the agents and servants of Lessee excepted) to occupy or use said Premises, or any portion thereof, without the prior written consent of Lessor first had and obtained and a consent to one assignment, subletting or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting or use by another person, or to release Lessee from any liability hereunder.  Any such assignment or subletting without such consent shall be void, and shall not alter the primary liability of Lessee under this Lease.  This Lease shall not, nor shall any interest therein be assignable as to the Lessee's interest by operation of law, assignment for the benefit of creditors, voluntary or involuntary bankruptcy or 

 

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reorganization or otherwise, without the prior written consent of Lessor.

 

23.1            Lessor shall not arbitrarily withhold its consent if: (1) the proposed assignment or sublease is to a financially responsible person or concern; (2) the proposed assignee has the requisite business experience required to operate the business to be conducted on the Premises; (3) the use of the Premises by the proposed assignee is compatible with the other tenants in the building of which the Premises are a part; and (4) the use of the Premises by the proposed assignee shall not require substantial structural changes to the Premises; and (5) Lessee shall guarantee any such assignment or subletting.  All rents received by Lessee from its subtenants in excess of rent payable by Lessee to Lessor under this Lease shall be paid to Lessor, or any sums to be paid by an assignee to Lessee in consideration of the assignment of this Lease shall be paid to Lessor.

 

23.2            If Lessee requests Lessor to consent to a proposed assignment or subletting, Lessee shall pay to Lessor, whether or not consent is ultimately given, Lessor's reasonable attorneys' fees incurred in connection with each such request.

 

23.3            As an express condition of Lessor's consent to a subletting of the Premises, Lessee agrees that the monthly rental may be adjusted to reflect fair market value rent as of the date of the subletting.  In the event Lessee and Lessor do not agree as to what constitutes the fair market rental value as of the date of subletting, the fair market rental value shall be determined as provided in paragraph 39.

 

After the monthly rent for the extended term has been set, the appraisers shall immediately notify the parties.  If Lessee objects to the monthly rent that has been set, Lessee shall have the right to have this Lease expire at the end of the term, provided that Lessee pays all the costs in connection with the appraisal procedure that set the monthly rent.  Lessee's election to allow this Lease to expire at the end of the term must be exercised within ten (10) days after receipt of notice from the appraisers of the monthly rent for the extended term.

 

24.            SUBORDINATION OF LEASE.  Lessee agrees that Lessor may hypothecate, pledge or transfer this Lease for any lawful purpose.  This Lease is subject to any mortgages, trust deeds or other liens which are or may be against said Premises or the building in which said Premises are located.  Lessee agrees that Lessee shall, upon request, execute such documents as may be necessary to make the rights given to Lessee hereunder subordinate to any such mortgages, deeds of trust, or other liens now against said Premises or the building in which said Premises are located.  If Lessor fails to pay any part or all taxes against said real property or installments on any mortgage or trust deed against said real property which will interfere with Lessee's right to possession, Lessee may pay the same and deduct the amount paid from the next rent due.  In order that Lessor may obtain a loan against said Premises, or the building in which they are situated, at all times during the term of this Lease, Lessee agrees to furnish Lessor with Lessee's financial statements required for loan application.

 

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25.            LESSEE'S BANKRUPTCY.  If Lessee suffers the appointment of a receiver to take possession of substantially all of Lessee's assets and such receiver is now removed within thirty (30) days from the date of his appointment or if Lessee makes a general assignment for the benefit of creditors, or if Lessee files a petition in bankruptcy or reorganization or if there is filed against Lessee an involuntary petition in bankruptcy or for reorganization, then in such event Lessor may, at Lessor's option terminate and cancel this Lease together with any right or rights whatsoever which Lessee may have hereunder.

 

26.            LESSEE'S BREACH.  If Lessee fails to pay rent when the same becomes due, time being expressly declared to be of the essence of this Lease, or if Lessee fails to perform any other covenant, condition or obligation required of Lessee, or if Lessee abandons said Premises (abandonment being defined herein as Lessee's failure to have any employee in said Premises, or Lessee's failure to use said Premises for five (5) consecutive days provided in either event Lessee is at the same time in default in the payment of rent), Lessor, in addition to any other legal remedies Lessor may have, shall have the option to do any one or all of the following to the extent that they are not inconsistent:

 

26.1            Immediately re-enter and remove all persons and property from said Premises, storing said property in a public warehouse or elsewhere at Lessee's expense without liability on the part of Lessor.

 

26.2            Collect by suit or otherwise each installment of rent or other sum as it becomes due or enforce by writ or otherwise any covenant or condition or term of this Lease required to be performed by Lessee.

 

26.3            Terminate this Lease in which event Lessee agrees to immediately surrender possession of said Premises and to pay Lessor all damages Lessor may incur by reason of Lessee's default including the cost of recovering possession of said Premises and including the worth at the time of such termination of the excess if any of the amount of rent and charges equivalent to the rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of said Premises for the remainder of said term, and Lessor shall have all of the rights and remedies provided by California Civil Code Section 1951.2, including, but not limited to, the right to terminate Lessee's right to possession and to recover the worth at the time of award of the amount by which the unpaid rent, additional rent, and other charges for the balance of the term after the time of award exceeded the amount of rental loss for the same period that Lessee proves could be reasonably avoided, as computed pursuant to subsection (b) of section 1951.2.

 

26.4            Should Lessor elect to re-enter as herein provided, or should Lessor take possession pursuant to legal proceedings or pursuant to any notice provided for by law, Lessor may either terminate this Lease or may from time to time, without terminating 

 

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this Lease, re-let said Premises, or any part thereof for the account of Lessee either in Lessor's name or otherwise, upon such terms and conditions and for such period (whether longer than the balance of the term hereof of not) as Lessor may deem advisable, either with or without any equipment or fixtures that may be situated thereon or therein, in which event the rents received on any such re-letting during the balance of the term of this Lease or any part thereof shall be applied first to the expenses of re-letting and collection, including necessary renovation and alteration of the Premises and a reasonable attorneys' fee and any real estate commission actually paid and, thereafter, toward payment of all sums due or to become due to Lessor hereunder, and if a sufficient sum shall not be thus realized to pay such rent and other charges, Lessee shall pay to Lessor monthly any deficiency and Lessor may sue therefor as each monthly deficiency shall arise; such monthly deficiencies shall be paid punctually when due, as herein provided, notwithstanding the fact that Lessor may have received rental in excess of the monthly rental herein stipulated in previous months and notwithstanding the fact that Lessor may thereafter receive monthly rental in excess of the monthly payments herein specified during subsequent months.  No re-entry or taking possession of said Premises shall terminate this Lease unless written notice of such intention is given to Lessee.  Unpaid installments of rent or other sums shall bear interest at the highest legal rate from the date due.

 

26.5            Lessor has all of the remedies described in California Civil Code Section 1951.4 (providing that Lessor may continue the Lease in effect after the Lessee's breach and abandonment and recover rent as it becomes due, if Lessee has the right to sublet or assign the Lease, subject to reasonable limitations).

27.            LESSOR'S LIEN.  If Lessee is in default under any covenant, term or condition of this Lease or has abandoned said Lease, including paragraphs 25 and 26 above, Lessee hereby grants to Lessor a lien upon any personal property or trade fixtures of Lessee in said Premises which lien Lessor may satisfy by selling said personal property and trade fixtures at public or private sale without notice to Lessee and from the proceeds of said sale satisfy first any costs of storage, removal and sale and any other debts due from Lessee to Lessor and secondly satisfy the total amount of unpaid rent due and hold any balances for the account of Lessee.  This lien shall accrue to Lessor's benefit whenever Lessee is in default and when Lessor exercises any right which Lessor may have at law or remedy which Lessor may have, including paragraphs 25 and 26 above.

 

28.            PARTIAL AND TOTAL DESTRUCTION.

 

28.1            Destruction Arising from Risk Covered by Insurance.  If a partial destruction of said Premises or the building containing the same occurs during said term, arising out of risks covered by fire and extended coverage insurance or if said partial destruction damages exterior walls, roof or cement embedded non-accessible plumbing, which requires repairs to either said Premises or said building, Lessor shall forthwith make such repairs required provided such repairs can be made within 180 days under the 

 

 

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laws and regulations of authorized public authorities, but such partial destruction (including any destruction necessary in order to make repairs required by any such destruction) shall in no way void this Lease, except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made, based upon the extent to which the making of such repairs shall interfere with the business carried on by Lessee in said Premises provided that in making such repairs, Lessor shall be obligated to replace only such glazing as shall be damaged by fire and other damaged glazing shall be replaced by Lessee.  If such repairs cannot be made within 180 days, Lessor may, at Lessor's option, make the same within a reasonable time, this Lease continuing in full force and effect and the rent to be proportionately abated, as in this paragraph provided; or if Lessor does not elect to make such repairs which cannot be made within 180 days, or such repairs cannot be made under such laws and regulations, this Lease may be terminated at the option of either party.  In respect to any partial destruction, including any destruction necessary in order to make repairs required by any such destruction, which Lessor is obligated to repair or may elect to repair under the terms of this paragraph, the provisions of §§ 1932(2) and 1933(4) of the California Civil Code are waived by Lessee.  If said destruction or damage is sustained and occurs during the last six months of the term of this Lease, Lessor, at Lessor's option, may terminate and cancel this Lease.  A total destruction of said Premises (including any total destruction required by any authorized public authority) shall terminate this Lease.

 

28.2            Damage Arising from Risk Not Covered by Insurance.  If during the term the Premises or the building and other improvements in which the Premises are located are totally or partially destroyed from a risk not covered by fire or extended coverage insurance, rendering the Premises totally or partially inaccessible or unusable, Lessor may restore the Premises or the building and other improvements in which the Premises are located to substantially the same condition as they were in immediately before destruction.  At the election of Lessor, such destruction may terminate this Lease.  If Lessor elects to restore the Premises or the building, and if damage to Lessee's property is extensive and not covered by insurance required to be carried by Lessee under this Lease, and it causes Lessee extreme financial distress, then Lessee may terminate this Lease by written notice to Lessor.  If the existing laws do not permit the restoration, either party can terminate this Lease immediately by giving notice to the other party.  If the cost of restoration exceeds ten (10) percent of the then replacement value of the Premises or the building and other improvements in which the Premises are located that are destroyed, Lessor can elect to terminate this Lease by giving notice to Lessee within thirty (30) days after determining the restoration cost and replacement value.

 

28.3            Lessee's Responsibility. Paragraph 16 of this Lease notwithstanding, if Lessor is required or elects to restore the Premises as provided in paragraphs 28.1 and 28.2, Lessor shall not be required to restore alterations made by Lessee, Lessee's improvements, Lessee's trade fixtures and Lessee's personal property, such excluded items being the sole responsibility of Lessee to restore.

 

28.4            Wavier of Subrogation.  The parties release each other, and their respective authorized representatives, from any claims for damage to any person or to the 

 

 

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Premises and the building and other improvements in which the Premises are located, and to the fixtures, personal property, Lessee's improvements and alterations of either Lessor or Lessee in or about the Premises and the building and other improvements in which the Premises are located that are caused by or result from risks insured against under any insurance policies carried by the parties and in force at the time of any such damage.

 

28.4.1  Each party shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of subrogation against either party in connection with any damage covered by any policy.  Neither party shall be liable to the other for any damage caused by fire or any of the risks insured against under any insurance policy required by this Lease.  If any insurance policy cannot be obtained with a waiver of subrogation, or is obtainable only by the payment of an additional premium charge above that charged by insurance companies issuing policies without waiver of subrogation, the party undertaking to obtain the insurance shall notify the other party of this fact.  The other party shall have a period of ten (10) days after receiving the notice either to place the insurance with a company that is reasonably satisfactory to the other party and that will carry the insurance with a waiver of subrogation, or to agree to pay the additional premium if such a policy is obtainable at additional cost.  If the insurance cannot be obtained or the party in whose favor a waiver of subrogation is desired refuses to pay the additional premium charged, the other party is relieved of the obligation to obtain a waiver of subrogation rights with respect to the particular insurance involved.

 

29.            CANCELLATION OF INSURANCE; INCREASE IN INSURANCE RATES.  Lessee shall not do, bring, or keep anything in or about the Premises that will cause a cancellation of any insurance covering the Premises

 

29.1            If the rate of any insurance carried by Lessor is increased as a result of Lessee's use, Lessee shall pay to Lessor within ten days before the date Lessor is obligated to pay a premium on the insurance, or within ten days after Lessor delivers to Lessee a certified statement from Lessor's insurance carrier stating that the rate increase was caused solely by an activity of Lessee on the Premises as permitted in this Lease, whichever date is later, a sum equal to the difference between the original premium and the increased premium.

 

30.            SURRENDER.  The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not work a merger and shall, at the option of Lessor, terminate all or any existing subtenancies or may, at the option of Lessor, operate as an assignment to Lessor of any or all of such subtenancies.

 

31.            ATTORNEYS' FEES.  If either party to this Lease brings an action to enforce the terms hereof or declare rights hereunder the prevailing party in such action shall be entitled to reasonable attorneys' fees as fixed by the Court incurred in the trial or appeal of such matter.

 

32.            NOTICE TO LESSEE.  All notices to be given to Lessee including any notice referred to in §1162 of the California Code of Civil Procedure may be given in writing and served personally or by depositing the same in the United States mail, postage prepaid, and addressed to Lessee at said Premises, whether or not Lessee has departed from, abandoned or vacated said Premises.

 

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33.            NOTICE TO LESSOR.  All notices to be given to Lessor shall be deemed given if and when mailed by certified or registered mail, postage prepaid, addressed to Lessor at the following address:  2 Magnolia Ave., San Anselmo CA  94960.

 

34.            WAIVER.  The waiver by Lessor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of any term, covenant or conditions hereof.

 

35.            HOLDING OVER.  If Lessee holds over after the termination of this Lease, Lessee shall become a tenant from month to month only upon each and all of the terms herein provided as may be applicable to such month-to-month tenancy and any such holding over shall not constitute an extension of this Lease.  During such holding over, Lessee shall pay rent at a monthly rate equal to the monthly rent being paid during the last year of this Lease.

 

36.            LATE CHARGES.  Lessee acknowledges that late payment by Lessee to Lessor of rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of such costs being extremely difficult and impracticable to fix.  Such costs include, without limitation, processing and accounting charges and late charges that may be imposed on Lessor by the terms of any encumbrance and note secured by any encumbrance covering the Premises.  Therefore, if any installment of rent due from Lessee is not received by Lessor (or postmarked) within five (5) days of its due date, Lessee shall pay to Lessor an additional sum of ten percent (10%) of the overdue rent as a late charge.  The parties agree that this late charge represents a fair and reasonable estimate of the costs that Lessor will incur by reason of late payment by Lessee.  Acceptance of any late charge shall not constitute a waiver of Lessee's default with respect to the overdue amount, or prevent Lessor from exercising any of the other rights and remedies available to Lessor.

 

37.            INTEGRATED AGREEMENT; MODIFICATION.  This Lease contains all agreements of the parties; there are no oral agreements and this Lease cannot be amended or modified except by a written agreement.

 

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38.            HAZARDOUS MATERIALS.  Lessor and Lessee agree as follows with respect to the existence or "use" of "hazardous materials" (as hereinafter defined) on the Premises:

 

38.1            Lessee, at Lessee's sole cost, shall comply with all laws, regulations and requirements relating to the storage, use, handling, treatment or disposal of hazardous materials.

 

38.2            Lessee agrees that Lessee will not allow any hazardous materials to be placed or accumulate on the leased property by either Lessee, its agents, employees or invitees.

 

38.3            Lessee agrees that Lessee will be responsible for any hazardous materials placed on the property (starting from the time Lessee first occupies the property as Lessee) by Lessee, Lessee's agents, employees, contractors, licensees or invitees or if any materials are placed on the Premises, Lessee shall take such action as may be necessary to clean up such contamination.

 

38.4            As used herein the term "hazardous materials" means any hazardous or toxic substance, material or waste the storage, use or disposition of which is or becomes regulated by any local or regional governmental authority, the State of California, or the United States Government.

 

39.        OPTION TO RENEW.  Lessee is given the option to extend the term of this Lease for one (1) additional three (3) year period following the expiration of the initial term, provided Lessee has not been late in payment of monthly rent (resulting in the service of a three-day notice) more than five (5) times during the initial term or the first extended term of this Lease. The option to renew is conditioned by giving notice of exercise of the option ("Option Notice") to Lessor at least (9) nine months  but not more than twelve (12) months before the expiration of the initial term or any extended term, provided that, if Lessee is in default on the date of giving the Option Notice, the Option Notice shall be ineffective, or if Lessee is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the initial term or first extended term. If notification of Lessee's intention to exercise said option is not so given and received, this option shall automatically expire.   The monthly rent for the extended term shall be payable as follows:

 

39.1      Within thirty (30) days after Lessee exercises the option to renew this lease, and prior to the commencement of the extended term, the parties shall meet and determine whether or not they can agree upon the new monthly rent based on the fair market rental value for the premises at the time extended term is to commence. In the event the parties cannot agree on the new monthly rent, the monthly rent for the extended period shall be the prevailing fair market rental value for the San Anselmo Avenue area, as determined by appraisal described as follows. However, in no event shall the monthly rent for the extended term be less than the monthly rent paid during the last year of the initial term.

 

39.2      Within ten (10) days after the determination by the parties that they cannot agree upon a mutual agreeable fair market rental value, each party shall select a licensed real estate broker familiar with the San Anselmo Avenue area and commercial rents in said area. The two (2) brokers shall then meet within twenty (20) days thereafter in order to determine the prevailing fair market rental for the San Anselmo Avenue area. In the event the two (2) selected real estate brokers cannot mutually agree upon the prevailing fair market rental value for the San Anselmo Avenue area, they shall then select a third broker, and the majority of appraisals of value and the average of the three appraisals of value by the three brokers shall then establish and constitute the prevailing fair market rental. Provided, however, should the appraisal of any one of the brokers selected by the parties differ by more than ten percent (10%) from the appraisal of the third (3rd) broker, such appraisal shall be excluded from consideration and the average of the two remaining appraisals shall constitute the prevailing fair market rental. "Appraisal" or "Opinion" are used in this subparagraph shall be calculated on the basis of price per square foot, modified gross. Each party should bear the cost of the broker which he/she retains pursuant to this paragraph and one-half (1/2) of the cost of the third broker. The fair market rental value, as determined by said brokers, shall be the monthly rental payable commencing the first year of the extended term. Notwithstanding the foregoing, the monthly rent as determined by said brokers shall not be less than the monthly rent paid during the last year of the initial term.

 

39.3  The monthly rental payable during the ensuing years of the extended term, i.e., years two (2) through five (5) shall be adjusted pursuant to the change and the consumer price index as set forth in paragraph 5.2.

 

40.           CONFIDENTIALITY.  The terms and conditions of this Lease and the negotiations shall remain confidential between the parties.

 

41.      PROVISIONS ARE COVENANTS AND CONDITIONS.  All provisions whether covenants or conditions on the part of Lessee shall be deemed to be both covenants and conditions.

 

42.      SIGNS.  Lessee shall be permitted to place a sign on the front and/or side of the building, provided Lessee first receives Lessor's consent and Lessee complies with all local statutes, ordinances, and regulations.

 

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43.           FLOODING:    It is acknowledged by the Lessee that the Premises experienced flooding in the winter of 1982 and 2005.

 

44.      PREMISES:  It is understood and agreed upon between Lessor and Lessee that the final square footage of the Premises and the common area shall be arrived at by Lessor's architect.

 

45.      POSSESSION:  If the Landlord, for any reason whatsoever, cannot deliver possession of the said Premises to the Tenant at the commencement of the term hereof, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom, nor shall the expiration date of the above term be in any way extended, but in that event, all rent shall be abated during the period between the commencement of said term and the time when Landlord delivers possession.

 

In the event that Landlord shall permit Tenant to occupy the Premises prior to the commencement date of the term, such occupancy shall be subject to all the provisions of this Lease.  Said early possession shall not advance the termination date hereinabove provided.

 

46.   OBSTRUCTIONS:   Lessee shall not obstruct the sidewalks and paved areas adjacent to the demised premises or any portion of the property on which the demised premises are situated, excepting those areas assigned for the Lessee's loading or storage.

 

47.   AGREEMENT WITH THE CITY OF SAN ANSELMO:   Lessee takes possession subject to the provision of that certain Contract of Indemnification (January 9, 1973) with the City of San Anselmo, copy of which is attached hereto, recorded in Marin County in Book 2660 at page 286. This applies only to leases in the 540 San Anselmo Ave. building.

 

48. SUCCESSORS:    All the terms, covenants and conditions hereof shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto, provided that nothing in this paragraph shall be deemed to permit any assignment, subletting, occupancy or use contrary to the provisions of paragraph 23.

 

49. Lessor shall negotiate a mutual agreement with Cora Nelson for dual use of the Premises. That agreement shall describe but not be limited to the space to be used, time of use, cost, and manner in which the space can be used.

 

 

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IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease the day and year first hereinabove written.

 

 

	
LESSOR:

	
LESSEE:

	
Four Kays

	
Michael Hinshaw

	
 

	
 

	JOHN KAUFMAN	
	John Kaufman	BY:  MICHAEL HINSHAW
	 	        __________________________________, Its President
	 	
	Date: 6/30/14	Date: 6/30/14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Leaseex10_2.htm

Exhibit 10.2

 

 

 

 

Home Treasure Finders Inc

3412 W 62nd Ave

Denver, CO 80221

Phone: (720)273-2398 Fax: (720)890-8885

 

 1     The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate Commission.

 2      (CBS4-8-13) (Mandatory 1-14)

 3

 4      THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR

 5      OTHER COUNSEL BEFORE SIGNING.

 6

 7                                  CONTRACT TO BUY AND SELL REAL ESTATE

 8                                                 (INCOME - RESIDENTIAL)

 9                                                               (x Property with No Residences)

10                                                     (x 1-4 Units          o  Larger than 1-4 Units)

11                                             Date: July 22, 2014

12                                                                     AGREEMENT

13        1.  AGREEMENT. Buyer, identified in § 2.1, agrees to buy, and Seller, identified in § 2.3, agrees to sell, the Property

14        described below on the terms and conditions set forth in this contract (Contract).

 

15       2.   PARTIES AND PROPERTY.

16             2.1.   Buyer. Buyer, JDONE LLC, will take title to the Property

17        described below as ❑ Joint Tenants ❑ Tenants In Common x Other INSEVERALTY.

18             2.2.  Assignability and Inurement. This Contract x Is ❑ Is Not assignable by Buyer without Seller's prior written

    19        consent. Except as so restricted, this Contract inures to the benefit of and is binding upon the heirs, personal representatives,

    20        successors and assigns of the parties.

    21             2.3.  Seller. Seller, THOMAS S. YANG, is the current owner of the

    22        Property described below.

    23             2.4.  Property. The Property is the following legally described real estate in the County of DENVER, Colorado:

    24        ROMONA B7 L9 TO 11INC     

    25

    26

    27        

               4420, 4430 AND 4440 GARFIELD ST   Denver          Colorado         80216

    28  known as No.                                                                                                                                                                                                                   

    29             Street Address                                                     City                            State        Zip

 

    30        together with the interests, easements, rights, benefits, improvements and attached fixtures appurtenant thereto, and all interest of

    31        Seller in vacated streets and alleys adjacent thereto, except as herein excluded (Property).

    32             2.5.  Inclusions. The Purchase Price includes the following items (Inclusions):

    33                     2.5.1.  Fixtures. If attached to the Property on the date of this Contract, the following items are included unless

    34    excluded under Exclusions (§ 2.6): lighting, heating, plumbing, ventilating and air conditioning fixtures, TV antennas, inside

    35    telephone, network and coaxial (cable) wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom systems

    36    built-in kitchen appliances, sprinkler systems and controls, built in vacuum systems (including accessories), garage door openers

    37    including ALL remote controls.

    38        Other Fixtures: NA

    39 

    40

    41        If any fixtures are attached to the Property after the date of this Contract, such addition  fixtures are also included in the Purchase

    42        Price.

    43                   2.5.2.  Personal Property. If on the Property, whether attached or not,  on the date of this Contract, the following 

    44    items are included unless excluded under Exclusions (§ 2.6): storm windows, storm doors, window and porch shades, awnings,

    45    blinds, screens window coverings, curtain rods, drapery rods, fireplace inserts, fireplace screens, fireplace grates, heating stoves,

    46    storage sheds and all keys.  If checked. the following are included: x  Water Softners x  Smoke/Fire Detectors.

    47   x  CarbonMonoxide Alarms  x Security Systems  x Satellite Systems (including satelite dishes).

        

 

 

 

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Buyer initials                                                                                                

	Seller initials                                   

                      

  

  

  

 

    

48   Other Personal Property: ALL PERSONAL PROPERTY LOCATED ON THE PREMISES ON SHOWING DATE OF 

          7/21/14

49

50

51                  The Personal Property to be conveyed at Closing must be conveyed by Seller free and clear of all taxes (except

52   personal property taxes for the year of Closing), liens and encumbrances, except _______________________

53    Conveyance will be by bill of sale or other applicable legal instrument.

54         2.5.3.  Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows:

55    ALL AS ADVERTISED ON FLYER TENDERED ON SHOWING DATE OF 7/21/14

56

57                  The Trade Fixtures to be conveyed at Closing will be conveyed by Seller free and clear of all taxes (except personal

58    property taxes for the year of Closing), liens and encumbrances, except __________________________. Conveyance

59    will be by bill of sale or other applicable legal instrument.

60          2.5.4. Parking and Storage Facilities. o Use Only x Ownership of the following parking facilites:

61    ALL ASSIGNED OR DEEDED: AND  o Use Only x Ownership of the following parking facilites: ALL ASSIGNED OR

        DEEDED.

62      2.6.  Exclusions. The following items are excluded (Exclusions):

63    NO EXCLUSIONS

64

65      2.7.  Water Rights, Well Rights, Water and Sewer Taps.

66   r    2.7.1 Deeded Water Rights. The following legally described water rights:

67 

68

69    Any deeded water rights will be conveyed by a good and sufficient                                                 deed at Closing.

70   ❑     2.7.2.  Other Rights Relating to Water. The following rights relating to water not included in §§2.7.1, 2.7.3,

71    2.7.4 and 2.7.5, will be transferred to Buyer at Closing:

72

73

74

75   ❑              2.7.3.  Well Rights. Seller agrees to supply required information to Buyer about the well. Buyer understands that

76    if the well to be transferred is a "Small Capacity Well" or a "Domestic Exempt Water Well" used for ordinary household 

77    purposes, Buyer must, prior to or at Closing, complete a Change in Ownership form for the well. If an existing well has not been 

78    registered with the Colorado Division of Water Resources in the Department of Natural Resources (Division), Buyer must 

79    complete a registration of existing well form for the well and pay the cost of registration. If no person will be providing a closing 

82    service in connection with the transaction, Buyer must file the form with the Division within sixty days after Closing. The Well 81    Permit # is                                                     .

82   ❑              2.7.4.  Water Stock Certificates. The water stock certificates to be transferred at Closing are as follows:

83

84

85

86      2.7.5.  Water and Sewer Taps. Note: Buyer is advised to obtain, from the provider, written confirmation of

87   the amount remaining to be paid, if any, time and other restrictions for transfer and use of the taps.

88      2.7.6.  Conveyance. If Buyer is to receive any rights to water pursuant to § 2.7.2 (Other Rights Relating to Water),

89    § 2.7.3 (Well Rights), or § 2.7.4 (Water Stock Certificates), Seller agrees to convey such rights to Buyer by executing the

90    applicable legal instrument at Closing.

 

91        3.  DATES AND DEADLINES.

	
Item No.

	
Reference

	
Event

	
Date or Deadline

	
1

	
§ 4.3

	
    Alternative Earnest Money Deadline

	
July 25, 2014

	 	  	Title	  
	
2

	
§ 8.1

	
    Record Title Deadline

	

July 31, 2014

	
3

	
§ 8.2

	
    Record Title Objection Deadline

	

August 1, 2014

	
4

	
§ 8.3

	
    Off-Record Title Deadline

	

August 4, 2014

	
5

	
§ 8.3

	
    Off-Record Title Objection Deadline

	
August 6,  2014

 

	 CBS2-8-13. CONTRACT TO BUY AND SELL REAL ESTATE (INCOME-RESIDENTIAL)   7/22/2014 8:31  	 Page 2 of 18
	
 

Buyer initials                                                                                                

	Seller initials                                         

                      

  

  

  

 

	
6

	
§ 8.4

	
    Title Resolution Deadline

	

August 8, 2014

	
7

	
§ 8.6

	
    Right of First Refusal Deadline

	  
	  	  	
Owners' Association

	  
	
8

	
§ 7.3

	
    Association Documents Deadline

	  
	
9

	
§ 7.4

	
    Association Documents Objection Deadline

	  
	  	  	
Seller's Property Disclosure

	  
	
10

	
§10.1

	
    Seller's Property Disclosure Deadline

	

August 1, 2014

	  	  	
Loan and Credit

	  
	
11

	
§ 5.1

	
    Loan Application Deadline

	
August 1 2014

	
12

	
§ 5.2

	
    Loan Objection Deadline

	
August 26, 2014

	
13

	
§ 5.3

	
    Buyer's Credit Information Deadline

	
August 19, 2014

	
14

	
§ 5.3

	
    Disapproval of Buyer's Credit Information Deadline

	
August 22, 2014

	
15

	
§ 5.4

	
    Existing Loan Documents Deadline

	  
	
16

	
§ 5.4

	
Existing Loan Documents Objection Deadline

	  
	
17

	
§ 5.4

	
Loan Transfer Approval Deadline

	  
	
18

	
§ 4.7

	
Seller or Private Financing Deadline

	
August 26, 2014

	  	  	
Appraisal

	  
	
19

	
§ 6.2

	
Appraisal Deadline

	
NA

	
20

	
§ 6.2

	
Appraisal Objection Deadline

	
NA

	  	  	
Survey

	  
	
21

	
§ 9.1

	
Current Survey Deadline

	
August 12, 2014

	
22

	
§ 9.2

	
Current Survey Objection Deadline

	
August 19, 2014

	
23

	
§ 9.3

	
Current Survey Resolution Deadline

	
August 22, 2014

	  	  	
Inspection and Due Diligence

	  
	
24

	
§ 10.2

	
Inspection Objection Deadline

	
August 23, 2014

	
25

	
§ 10.3

	
Inspection Resolution Deadline

	
August 25, 2014

	
26

	
§ 10.5

	
Property Insurance Objection Deadline

	
August 25, 2014

	
27

	
§ 10.6

	
Due Diligence Documents Delivery Deadline

	
August 9, 2014

	
28

	
§ 10.6

	
Due Diligence Documents Objection Deadline

	
August 12, 2014

	
29

	
§ 10.6

	
Due Diligence Documents Resolution Deadline

	
August 15, 2014

	
30

	
§ 10.6

	
Environmental Inspection Objection Deadline

	
August 16, 2014

	
31

	
§ 10.6

	
ADA Evaluation Objection Deadline

	
August 18, 2014

	
32

	
§ 10.7

	
Conditional Sale Deadline

	  
	
33

	
§ 11.1

	
Tenant Estoppel Statements Deadline

	  
	
34

	
§ 11.2

	
Tenant Estoppel Statements Objection Deadline

	  
	  	  	
Closing and Possession

	  
	
35

	
§ 12.3

	
Closing Date

	
September 1, 2014

	
36

	
§ 17

	
Possession Date

	
September 1, 2014

	
37

	
§17

	
Possession Time

	
DOD AND FUNDING

	
38

	
§ 28

	
Acceptance Deadline Date

	

July 23, 2014

	
39

	
§ 28

	
Acceptance Deadline Time

	
10 AM

 

92             Note: If  FHA or VA loan boxes are checked in §4.5.3 (Loan Limitations), the Appraisal Deadline (§ 3) does Not apply to FHA90        

93        insured or VA guaranteed loans.

94             3.1.  Applicability of Terms. Any box checked in this Contract means the corresponding provision applies. Any box,

95        blank or line in this Contract left blank or completed with the abbreviation "N/A", or the word "Deleted" means such provision,

96        including any deadline, is not applicable and the corresponding provision of this Contract to which reference is made is deleted.

 

97        The abbreviation "MEC" (mutual execution of this Contract) means the date upon which both parties have signed this Contract.

 

98        4.    PURCHASE PRICE AND TERMS.

 

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99             4.1.  Price and Terms. The Purchase Price set forth below is payable in U.S. Dollars by Buyer as follows:

 

	
Item No.

	
Reference

	
Item

	
Amount

	
Amount

	
1

	
§ 4.1

	
Purchase Price

	
 $        795,000.00 

	  
	
2

	
§ 4.3

	
Earnest Money

	  	
 $        10,000.00 

	
3

	
§ 4.5

	
New Loan

	  	  
	
4

	
§ 4.6

	
Assumption Balance

	  	  
	
5

	
§ 4.7

	
Private Financing

	  	  
	
6

	
§ 4.7

	
Seller Financing

	  	
 $    635,000.00 

	
7 8

	  	  	  	  
	
9

	
§ 4.4

	
Cash at Closing

	  	
 $       150,000.00 

	
10

	
TOTAL

	
$

	
 $         

	
 $       795,000.00 

 

       100       4.2.   Seller Concession. Seller, at Closing, will credit, as directed by Buyer, an amount of $ 0 to assist

101    with any or all of the following: Buyer's closing costs, loan discount points, loan origination fees, prepaid items (including any

102    amounts that Seller agrees to pay because Buyer is not allowed to pay due to FHA, CHFA, VA, etc.), and any other fee, cost

103    charge, expense or expenditure realted to Buyer's New Loan or other allowable Seller concession (colletively, Seller 

104    Concession). Seller Concession is in addition to any sum Seller has agreed to pay or credit Buyer elsewhere in this Contract. Seller

105    Concession will be reduced to the extent it exceeds the aggregate of what is allowed by Buyer's lender as set forth in the Closing

106    Statement, Closing Disclosure or HUD- 1, at Closing.

107       4.3.   Earnest Money. The Earnest Money set forth in this section, in the form of BUSINESS CHECK, will be payable to

108    and held by FIDELITY TITLE (Earnest Money Holder), in its trust account, on behalf of both Seller and Buyer. The Earnest

109    Money deposit must be tendered, by Buyer, with this Contract unless the parties mutually agree to an Alternative Earnest Money

110   Deadline (§ 3) for its payment. The parties authorize delivery of the Earnest Money deposit to the company conducting the

111    Closing (Closing Company), if any, at or before Closing. In the event Earnest Money Holder has agreed to have interest on Earnest

112    Money deposits transferred to a fund established for the purpose of providing affordable housing to Colorado residents, Seller and 

113    Buyer acknowledge and agree that any interest accruing on the Earnest Money deposited with the Earnest Money Holder in this 

114    transaction will be transferred to such fund.

115      4.3.1.   Alternative Earnest Money Deadline. The deadline for delivering the Earnest Money, if other than at the

116    time of tender of this Contract, is as set forth as the Alternative Earnest Money Deadline (§ 3).

117      4.3.2.  Return of Earnest Money. If Buyer has a Right to Terminate and timely terminates, Buyer is entitled to   

118         the return of Earnest Money as provided in this Contract. If this Contract is terminated as set forth in § 25 and, except as provided

119         in § 24, if the Earnest Money has not already been returned following receipt of a Notice to Terminate, Seller agrees to execute

120         and return to Buyer or Broker working with Buyer, written mutual instructions (e.g., Earnest Money Release form), within three

121         days of Seller's receipt of such form.

122      4.4.  Form of Funds; Time of Payment; Available Funds.

113         4.4.1.  Good Funds. All amounts payable by the parties at Closing, including any loan proceeds, Cash at Closing

134    and closing costs, must be in funds that comply with all applicable Colorado laws, including electronic transfer funds, certified

125    check, savings and loan teller's check and cashier's check (Good Funds).

126         4.4.2.  Time of Payment; Available Funds. All funds, including the Purchase Price to be paid by Buyer, must be

127    paid before or at Closing or as otherwise agreed in writing between the parties to allow disbursement by Closing Company at

128    Closing OR SUCH NONPAYING PARTY WILL BE IN DEFAULT. Buyer represents that Buyer, as of the date of this

129    Contract,  x  Does ❑ Does Not have funds that are immediately verifiable and available in an amount not less than the amount

130    stated as Cash at Closing in § 4.1.

131      4.5.  New Loan.

132         4.5.1.  Buyer to Pay Loan Costs. Buyer, except as provided in § 4.2, if applicable, must timely pay Buyer's loan

133    costs, loan discount points, prepaid items and loan origination fees, as required by lender.

134         4.5.2.  Buyer May Select Financing. Buyer may pay in cash or select financing appropriate and acceptable to

135    Buyer, including a different loan than initially sought, except as restricted in § 4.5.3 or § 30 (Additional Provisions).

136         4.5.3.   Loan Limitations. Buyer may purchase the Property using any of the following types of loans:

137   ❑ Conventional  FHA   r VA   r Bond    x Other OWNER FINANCING.

138          4.5.4  Good Faith Estimate - Monthly Payment and Loan Costs.  Buyer is advised to reiew the terms, conditions 

139    and cost of Buyer's New Loan carefully.  If Buyer is applying for a residential loan, the lender generally must provide Buyer with

 

 

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140    a good faith estimate of Buyer's closing costs withi three days after Buyer completes a loan applicatoin.  Buyer also should obtain

141    an estimate of the amount of Buyer's monthly mortgage payment.

142      4.6.  Assumption. Buyer agrees to assume and pay an existing loan in the approximate amount of the Assumption

143    Balance set forth in § 4.1, presently payable at $                               per          including principal and interest

144    presently at the rate of        % per annum, and also including escrow for the following as indicated: ❑ Real Estate Taxes

145   ❑ Property Insurance Premium  r Mortgage Insurance Premium and ❑                                                                              .

146    Buyer agrees to pay a loan transfer fee not to exceed $                . At the time of assumption, the new interest rate will

147    not exceed                        % per annum and the new payment will not exceed $                per          principal and

148    interest, plus escrow, if any. If the actual principal balance of the existing loan at Closing is less than the Assumption Balance,

149    which causes the amount of cash required from Buyer at Closing to be increased by more than $             , then Buyer has

150    the Right to Terminate under § 25.1, on or before Closing Date (§ 3), based on the reduced amount of the actual principal balance.

151            Seller ❑ Will ❑ Will Not be released from liability on said loan, If applicable, compliance with the requirements for

152         release from liability will be evidenced by delivery ❑ on or before Loan Transfer Approval Deadline (§ 3) ❑ at Closing of

153         an appropriate letter of commitment from lender. Any cost payable for release of liability will be paid by

154         in an amount not to exceed $                     .

155               4.7.  Seller or Private Financing.

156         WARNING: Unless the transaction is exempt, federal and statelaws impose licensing, other requirements and restrictions on

157         sellers and private financiers. Contract provisions on financing and financing documents, unless exempt, should be be prepared by a

158         licensed Colorado attorney or licensed mortgage loan originator. Brokers should not prepare or advise the parties on the specifics

159         of financing, including whether or not a party is exempt from the law.

160                    4.7.1.   Seller Financing. If Buyer is to pay all or any portion of the Purchase Price with Seller financing (§ 4.I),

161         r Buyer x Seller will deliver the proposed Seller financing documents to the other party on or before 7 days before

    162         Seller or Private Financing Deadline (§ 3).

163                           4.7.1.1.  Seller May Terminate. If Seller is to provide Seller financing (§ 4.1), this Contract is conditional

164         upon Seller determining whether such financing is satisfactory to the Seller, including its payments, interest rate, terms, conditions,

    165         cost and compliance with the law. Seller has the Right to Terminate under § 25.1, on or before Seller or Private Financing

    166         Deadline (§3), if such Seller financing is not satisfactory to the Seller, in Seller's sole subjective discretion.

167                    4.7.2.  Buyer May Terminate. If Buyer is to pay all or any portion of the Purchase Price with Seller or private

168         ifnancing (§ 4.1), this Contract is conditional upon Buyer determining whether such financing is satisfactory to the Buyer,

169         including its availability, payments, interest rate, terms, conditions and cost. Buyer has the Right to Terminate under § 25.1, on or

170         before Seller or Private Financing Deadline (§ 3), if such Seller or private financing is not satisfactory to Buyer, in Buyer's sole

171         subjective discretion.

172

173                                                            TRANSACTION PROVISIONS

 

174        5.  FINANCING CONDITIONS AND OBLIGATIONS.

175               5.1.  Loan Application. If Buyer is to pay all or part of the Purchase Price by obtaining one or more new loans (New

176         Loan), or if an existing loan is not to be released at Closing, Buyer, if required by such lender, must make an application verifiable

177         by such lender, on or before Loan Application Deadline (§ 3) and exercise reasonable efforts to obtain such loan or approval.

178               5.2.  Loan Objection. If Buyer is to pay all or part of the Purchase Price with a New Loan, this Contract is conditional

179         upon Buyer determining, in Buyer's sole subjective discretion, whether the New Loan is satisfactory to Buyer, including its

180         availability, payments , interest rate, terms, conditions, and cost of such New Loan. This condition is for the sole benefit of Buyer.

181         Buyer has the Right to Terminate under § 25.1, on or before Loan Objection Deadline (§ 3), if the New Loan is not satisfactory to

182         Buyer, in Buyer's sole subjective discretion. IF SELLER IS NOT IN DEFAULT AND DOES NOT TIMELY RECEIVE

183         BUYER'S WRITTEN NOTICE TO TERMINATE, BUYER'S EARNEST MONEY WILL BE NONREFUNDABLE, except

184         as otherwise provided in this Contract (e.g., Appraisal, Title, Survey).

185               5.3.   Credit Information. If an existing loan is not to be released at Closing, this Contract is conditional (for the sole

186         benefit of Seller) upon Seller's approval of Buyer's financial ability and creditworthiness, which approval will be at Seller's sole

187         subjective discretion. Accordingly: (1) Buyer must supply to Seller by Buyer's Credit Information Deadline (§ 3), at Buyer's

188         expense, information and documents (including a current credit report) concerning Buyer's financial, employment and credit

189         condition; (2) Buyer consents that Seller may verify Buyer's financial ability and creditworthiness; and (3) any such information

190         and documents received by Seller must be held by Seller in confidence, and not released to others except to protect Seller's interest

191         in this transaction. If the Cash at Closing is less than as set forth in § 4.1 of this Contract, Seller has the Right to Terminate under

192         § 25.1, on or before Closing. If Seller disapproves of Buyer's financial ability or creditworthiness, in Seller's sole subjective

193         discretion, Seller has the Right to Terminate under § 25.1, on or before Disapproval of Buyer's Credit Information Deadline

194         (§ 3).

 

 

 

 

 

 

 

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195               5.4.   Existing Loan Review. If an existing loan is not to be released at Closing, Seller must deliver copies of the loan

196         documents (including note, deed of trust, and any modifications) to Buyer by Existing Loan Documents Deadline (§ 3). For the

197         sole benefit of Buyer, this Contract is conditional upon Buyer's review and approval of the provisions of such loan documents.

198         Buyer has the Right to Terminate under § 25.1, on or before Existing Loan Documents Objection Deadline (§ 3), based on any

199         unsatisfactory provision of such loan documents, in Buyer's sole subjective discretion. If the lender's approval of a transfer of the

200         Property is required, this Contract is conditional upon Buyer's obtaining such approval without change in the terms of such loan,

201         except as set forth in § 4.6. If lender's approval is not obtained by Loan Transfer Approval Deadline (§ 3), this Contract will

202         terminate on such deadline. Seller has the Right to Terminate under § 25.1, on or before Closing, in Seller's sole subjective

203         discretion, if Seller is to be released from liability under such existing loan and Buyer does not obtain such compliance as set forth

204         in § 4.6.

 

205         6.  APPRAISAL PROVISIONS.

206                   6.1.  Lender Property Requirements. If the lender imposes any requirements or repairs (Requirements) to be made to

207         the Property (e.g., roof repair, repainting), beyond those matters already agreed to by Seller in this Contract, Seller has the Right to

208         Terminate under § 25.1, (notwithstanding § 10 of this Contract), on or before three days following Seller's receipt of the

209         Requirements, based on any unsatisfactory Requirements, in Seller's sole subjective discretion. Seller's Right to Terminate in this

210         § 6.1 does not apply if, on or before any termination by Seller pursuant to this § 6.1: (1) the parties enter into a written agreement

211         regarding the Requirements; or (2) the Requirements have been completed; or (3) the satisfaction of the Requirements is waived in

212         writing by Buyer.

213               6.2.  Appraisal Condition. The applicable Appraisal provision set forth below applies to the respective loan type set

214         forth in § 4.5.3, or if a cash transaction (i.e. no financing), § 6.2.1 applies.

215                       6.2.1.  Conventional/Other. Buyer has the sole option and election to terminate this Contract if the Property's

216         valuation, determined by an appraiser engaged on behalf of                                             is less than the Purchase Price.

217         The appraisal must be received by Buyer or Buyer's lender on or before Appraisal Deadline (§ 3). Buyer has the Right to

218         Terminate under § 25.1, on or before Appraisal Objection Deadline (§ 3), if the Property's valuation is less than the Purchase

219         Price and Seller's receipt of either a copy of such appraisal or written notice from lender that confirms the Property's valuation is

220         less than the Purchase Price. This § 6.2.1 is for the sole benefit of Buyer.

221           6.2.2  FHA. It is expressly agreed that, notwithstanding any other provision of this Contact, the Purchaser  

222    (buyer) shall not be obligated to complete the pruchase of the Property described herein or to incur any penalty by forfeiture of

223    Earnest Money deposits or otherwise unless the Purchaser (Buyer) has been given, in accordance with HUD/FHA or VA

224    requirements, a written statement issued by the Federal Housing Commissioner. Department of Verans Affairs or a Direct

225    Endorsement lender, setting forth the appraised value of the Property of not less than $ _____________.  The Purchaser (Buyer)

226    sahll have the privilege and option of proceeding with the consummation of this Contract without regard to the amount of the

227    appraised valuation.  The appraised valution is arrived at to determien the maximum mortgage the Department of Housing and 

228    Urban Development will insure.  HUD does not warrant the value nro the condition of the Property.  The Purchaser (Buyer) should

229    satisfy himself/herself that the price and condition of the Property are acceptable.

230      6.2.3  VA.  It is expressly agreed that, notwithstanding any other provision of this Contact, the purchaser  (Buyer)

231    shall not incur any penalty by forfeiture of  Earnest Money or otherwise or be obligated to complet the purchase of the Property

232    described herein.  If the Contract Purchase Price or cost exceeds the reasonable value of the Property establhed bu the Department 

233    of Veterans Affairs..  The purchaser (Buyer) shall, however, have the privilege and option of proceeding with the consummatin of 

234    this Contract without regard to the amount of the reasonable alue established by the Department of Veterans Affairs.

235               6.3.  Cost of Appraisal. Cost of any appraisal to be obtained after the date of this Contract must be timely paid by

236          x Buyer ❑ Seller. The cost of the appraisal may include any or all fees paid to the appraiser, appraisal management company,

237         lender's agent or all three.

238       7.  OWNERS' ASSOCIATION. This Section is applicable if the Property is located within a Common Interest

239         Community and subject to such declaration.

240               7.1.   Owners' Association Documents. Owners' Association Documents (Association Documents) consist of the

241         following;

242       7.1.1. All Owners' Association declarations, articles of incorporation, bylaws, articles of organization, operating

243   agreements, rules and regulations, party wall agreements;      

244                          7.1.2.           Minutes of most recent annual owners' meeting;

245                          7.1.3.           Minutes of any directors' or managers' meetings during the six-month period immediately preceding the

246            date of this Contract. If none of the preceding minutes exist, then the most recent minutes, if any (§§ 7.1.1, 7.1.2 and 7.1.3, 

247   collectively, Governing Documents); and   

248                           7.14   The most recent financial documents which consist of. (1) annual and most recent balance sheet, (2) annual

249         and most recent income and expenditures statement, (3) annual budget, (4) reserve study, and (5) notice of unpaid assessments, if

250         any (collectively, Financial Documents).

 

 

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251               7.2.  Common Interest Community Disclosure. THE PROPERTY IS LOCATED WITHIN A COMMON

252         INTEREST COMMUNITY AND IS SUBJECT TO THE DECLARATION FOR SUCH COMMUNITY. THE OWNER

253         OF THE PROPERTY WILL BE REQUIRED TO BE A MEMBER OF THE OWNERS' ASSOCIATION FOR THE

254         COMMUNITY AND WILL BE SUBJECT TO THE BYLAWS AND RULES AND REGULATIONS OF THE

255         ASSOCIATION. THE DECLARATION, BYLAWS, AND RULES AND REGULATIONS WILL IMPOSE FINANCIAL

256         OBLIGATIONS UPON THE OWNER OF THE PROPERTY, INCLUDING AN OBLIGATION TO PAY

257         ASSESSMENTS OF THE ASSOCIATION. IF THE OWNER DOES NOT PAY THESE ASSESSMENTS, THE

258         ASSOCIATION COULD PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO PAY THE DEBT. THE

259         DECLARATION, BYLAWS, AND RULES AND REGULATIONS OF THE COMMUNITY MAY PROHIBIT THE

260         OWNER FROM MAKING CHANGES TO THE PROPERTY WITHOUT AN ARCHITECTURAL REVIEW BY THE

261         ASSOCIATION (OR A COMMITTEE OF THE ASSOCIATION) AND THE APPROVAL OF THE ASSOCIATION.

262         PURCHASERS OF PROPERTY WITHIN THE COMMON INTEREST COMMUNITY SHOULD INVESTIGATE THE

263         FINANCIAL OBLIGATIONS OF MEMBERS OF THE ASSOCIATION. PURCHASERS SHOULD CAREFULLY

264         READ THE DECLARATION FOR THE COMMUNITY AND THE BYLAWS AND RULES AND REGULATIONS OF

265         THE ASSOCIATION.      

266               7.3.  Association Documents to Buyer.

267          ❑              7.3.1.  Seller to Provide Association Documents. Seller will cause the Association Documents to be provided to

268        Buyer, at Seller's expense, on or before Association Documents Deadline (§ 3).

269          ❑              7.3.2.  Seller Authorizes Association. Seller authorizes the Association to provide the Association Documents to

270         Buyer, at Seller's expense.

271                     7.3.3.  Seller's Obligation. Seller's obligation to provide the Association Documents is fulfilled upon Buyer's

272         receipt of the Association Documents, regardless of who provides such documents. 

273         Note: If neither box in this § 7.3 is checked, the provisions of § 7.3.1 apply. 

274               7.4.   Conditional on Buyer's Review. Buyer has the right to review the Association Documents. Buyer has the Right to

275         Terminate under § 25.1, on or before Association Documents Objection Deadline (§ 3), based on any unsatisfactory provision in

276         any of the Association Documents, in Buyer's sole subjective discretion. Should Buyer receive the Association Documents after

277         Association Documents Deadline (§ 3), Buyer, at Buyer's option, has the Right to Terminate under § 25.1 by Buyer's Notice to

278         Terminate received by Seller on or before ten days after Buyer's receipt of the Association Documents. If Buyer does not receive

279         the Association Documents, or if Buyer's Notice to Terminate would otherwise be required to be received by Seller after Closing

280         Date (§ 3), Buyer's Notice to Terminate must be received by Seller on or before Closing. If Seller does not receive Buyer's Notice

281         to Terminate within such time, Buyer accepts the provisions of the Association Documents as satisfactory, and Buyer waives any

282         Right to Terminate under this provision, notwithstanding the provisions of § 8.6 (Right of First Refusal or Contract Approval).

283

284         8.   TITLE INSURANCE, RECORD TITLE AND OFF-RECORD TITLE.

285               8.1.  Evidence of Record Title.

286        r            8.1.1.  Seller Selects Title Insurance Company. If this box is checked, Seller will select the title insurance

287         company to furnish the owner's title insurance policy at Seller's expense, On or before Record Title Deadline (§ 3), Seller must

288         furnish to Buyer, a current commitment for owner's title insurance policy (Title Commitment), in an amount equal to the

289         Purchase Price, or if this box is checked,  ❑ an Abstract of Title certified to a current date. Seller will cause the title insurance

290        policy to be issued and delivered to Buyer as soon as practicable at or after Closing.

291          x              8.1.2.  Buyer Selects Title Insurance Company. If this box is checked, Buyer will select the title insurance

292         company to furnish the owner's title insurance policy at Buyer's expense. On or before Record Title Deadline (§ 3), Buyer must

293         furnish to Seller, a current commitment .for owner's title insurance policy (Title Commitment), in an amount equal to the

294         Purchase Price.

295         If neither box in § 8.1.1 or § 8.1.2 is checked, § 8.1.1 applies.

296                     8.1.3.  Owner's Extended Coverage (OEC). The Title Commitment x Will ❑ Will Not commit to delete or

297         insure over the standard exceptions which relate to: (1) parties in possession, (2) unrecorded easements, (3) survey matters, (4)

298         unrecorded mechanics' liens, (5) gap period (effective date of commitment to date deed is recorded), and (6) unpaid taxes,

299         assessments and unredeemed tax sales prior to the year of Closing (OEC). If the title insurance company agrees to provide an

300         endorsement for OEC, any additional premium expense to obtain an endorsement for OEC will be paid by ❑ Buyer x Seller

301          ❑ One-Half by Buyer and One-Half by Seller ❑ Other

302         

303    Note: The title insurance company may not agree to delete or insure over any or all of the standard exceptions.

304                     8.1.4.   Title Documents. Title Documents consist of the following: (1) copies of any plats, declarations, covenants,

305          conditions and restrictions burdening the Property, and (2) copies of any other documents (or, if illegible, summaries of such

 

 

 

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306   documents) listed in the schedule of exceptions (Exceptions) in the Title Commitment furnished to Buyer (collectively, Title

307    Documents).

308                     8.1.5.   Copies of Title Documents. Buyer must receive, on or before Record Title Deadline (§ 3) copies of all

309         Title Documents. This requirement pertains only to documents as shown of record in the office of the clerk and recorder in the

283         county where the Property is located. The cost of furnishing copies of the documents required in this Section will be at the expense

284         of the party or parties obligated to pay for the owner's title insurance policy.

285                     8.1.6.   Existing Abstracts of Title. Seller must deliver to Buyer copies of any abstracts of title covering all or any

286         portion of the Property (Abstract of Title) in Seller's possession on or before Record Title Deadline (§ 3).

287               8.2.  Record Title. Buyer has the right to review and object to the Abstract of Title or Title Commitment and any of the

288         Title Documents as set forth in § 8.4 (Right to Object to Title, Resolution) on or before Record Title Objection Deadline (§ 3).

289         Buyer's objection may be based on any unsatisfactory form or content of Title Commitment or Abstract of Title, notwithstanding

290         § 13, or any other unsatisfactory title condition, in Buyer's sole subjective discretion. If the Abstract of Title, Title Commitment or

291         Title Documents are not received by Buyer, on or before the Record Title Deadline (§ 3), or if there is an endorsement to the Title

292         Commitment that adds a new Exception to title, a copy of the new Exception to title and the modified Title Commitment will be

293         delivered to Buyer. Buyer has until the earlier of Closing or ten days after receipt of such documents by Buyer to review and object

294         to:    (1) any required Title Document not timely received by Buyer, (2) any change to the Abstract of Title, Title Commitment or

295         Title Documents, or (3) any endorsement to the Title Commitment. If Seller receives Buyer's Notice to Terminate or Notice of

296         Title Objection, pursuant to this § 8.2 (Record Title), any title objection by Buyer is governed by the provisions set forth in § 8.4

297         (Right to Object to Title, Resolution). If Seller has fulfilled all Seller's obligations, if any, to deliver to Buyer all documents

298         required by § 8.1 (Evidence of Record Title) and Seller does not receive Buyer's Notice to Terminate or Notice of Title Objection

299         by the applicable deadline specified above, Buyer accepts the condition of title as disclosed by the Abstract of Title, Title

300         Commitment and Title Documents as satisfactory.

301               8.3.  Off-Record Title. Seller must deliver to Buyer, on or before Off-Record Title Deadline (§ 3), true copies of all

302         existing surveys in Seller's possession pertaining to the Property and must disclose to Buyer all easements, liens (including,

303         without limitation, governmental improvements approved, but not yet installed) or other title matters (including, without

304         limitation, rights of first refusal and options) not shown by public records, of which Seller has actual knowledge (Off-Record

305         Matters). Buyer has the right to inspect the Property to investigate if any third party has any right in the Property not shown by

306         public records (e.g., unrecorded easement, boundary line discrepancy or water rights). Buyer's Notice to Terminate or Notice of

307         Title Objection of any unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding § 8.2

308         and § 13), in Buyer's sole subjective discretion, must be received by Seller on or before Off-Record Title Objection Deadline

309         (§ 3). If an Off-Record Matter is received by Buyer after the Off-Record Title Deadline (§ 3), Buyer has until the earlier of

310         Closing or ten days after receipt by Buyer to review and object to such Off-Record Matter. If Seller receives Buyer's Notice to

311         Terminate or Notice of Title Objection pursuant to this § 8.3 (Off-Record Title), any title objection by Buyer and this Contract are

312         governed by the provisions set forth in § 8.4 (Right to Object to Title, Resolution). If Seller does not receive Buyer's Notice to

313         Terminate or Notice of Title Objection by the applicable deadline specified above, Buyer accepts title subject to such rights, if any,

314         of third parties of which Buyer has actual knowledge.

315               8.4.  Right to Object to Title, Resolution. Buyer's right to object to any title matters includes, but is not limited to those

316         matters set forth in §§ 8.2 (Record Title), 8.3 (Off-Record Title) and 13 (Transfer of Title), in Buyer's sole subjective discretion. If

317         Buyer objects to any title matter, on or before the applicable deadline, Buyer has the following options:

318                     8.4.1.  Title Objection, Resolution. If Seller receives Buyer's written notice objecting to any title matter (Notice

319         of Title Objection), on or before the applicable deadline, and if Buyer and Seller have not agreed to a written settlement thereof on

320         or before Title Resolution Deadline (§ 3), this Contract will terminate on the expiration of Title Resolution Deadline (§ 3),

321         unless Seller receives Buyer's written withdrawal of Buyer's Notice of Title Objection (i.e., Buyer's written notice to waive

322         objection to such items and waives the Right to Terminate for that reason), on or before expiration of Title Resolution Deadline

323         (§ 3). If either the Record Title Deadline or the Off-Record Title Deadline, or both, are extended to the earlier of Closing or ten

324         days after receipt of the applicable documents by Buyer, pursuant to § 8.2 (Record Title) or § 8.3 (Off-Record Title), the Title

325         Resolution Deadline also will be automatically extended to the earlier of Closing or fifteen days after Buyer's receipt of the

326         applicable documents; or

327                    8.4.2.  Title Objection, Right to Terminate. Buyer may exercise the Right to Terminate under § 25.1, on or

328         before the applicable deadline, based on any unsatisfactory title matter, in Buyer's sole subjective discretion.

329               8.5.  Special Taxing Districts. SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO GENERAL OBLIGATION

330         INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL TAX LEVIES ON THE TAXABLE

358         PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN SUCH DISTRICTS MAY BE PLACED AT RISK

359         FOR INCREASED MILL LEVIES AND TAX TO SUPPORT THE SERVICING OF SUCH DEBT WHERE

360         CIRCUMSTANCES ARISE RESULTING IN THE INABILITY OF SUCH A DISTRICT TO DISCHARGE SUCH

361         INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYERS SHOULD INVESTIGATE THE

362         SPECIAL TAXING DISTRICTS IN WHICH THE PROPERTY IS LOCATED BY CONTACTING THE COUNTY

 

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363         TREASURER, BY REVIEWING THE CERTIFICATE OF TAXES DUE FOR THE PROPERTY, AND BY OBTAINING

364         FURTHER INFORMATION FROM THE BOARD OF COUNTY COMMISSIONERS, THE COUNTY CLERK AND

365         RECORDER, OR THE COUNTY ASSESSOR.

366              Buyer has the Right to Terminate under § 25.1, on or before Off-Record Title Objection Deadline (§ 3), based on any

340         unsatisfactory effect of the Property being located within a special taxing district, in Buyer's sole subjective discretion.

341               8.6.  Right of First Refusal or Contract Approval. If there is a right of first refusal on the Property or a right to approve

342         this Contract, Seller must promptly submit this Contract according to the terms and conditions of such right. If the holder of the

343         right of first refusal exercises such right or the holder of a right to approve disapproves this Contract, this Contract will terminate.

344         If the right of first refusal is waived explicitly or expires, or the Contract is approved, this Contract will remain in full force and

345         effect. Seller must promptly notify Buyer in writing of the foregoing. If expiration or waiver of the right of first refusal or approval

346         of this Contract has not occurred on or before Right of First Refusal Deadline (§ 3), this Contract will then terminate.

347               8.7.  Title Advisory. The Title Documents affect the title, ownership and use of the Property and should be reviewed

348         carefully. Additionally, other matters not reflected in the Title Documents may affect the title, ownership and use of the Property,

349         including, without limitation, boundary lines and encroachments, set-back requirements, area, zoning, building code violations,

350         unrecorded easements and claims of easements, leases and other unrecorded agreements, water on or under the Property, and

351         various laws and governmental regulations concerning land use, development and environmental matters. The surface estate may

352         be owned separately from the underlying mineral estate, and transfer of the surface estate does not necessarily include

353         transfer of the mineral rights or water rights. Third parties may hold interests in oil, gas, other minerals, geothermal

354         energy or water on or under the Property, which interests may give them rights to enter and use the Property. Such matters,

355         and others, may be excluded from or not covered by the owner's title insurance policy. Buyer is advised to timely consult legal

356         counsel with respect to all such matters as there are strict time limits provided in this Contract [e.g., Record Title Objection

357         Deadline (§ 3) and Off-Record Title Objection Deadline (§ 3)].

 

358         9.  CURRENT SURVEY REVIEW.

359               9.1.  Current Survey Conditions. If the box in § 9.1.1 or § 9.1.2 is checked, Buyer, the issuer of the Title Commitment

360         or the provider of the opinion of title if an Abstract of Title, and BUYER AGENT, SELLER AND BUYER will receive an 

361         Improvement Location 

388    Certificate, Improvement Survey Plat or other form of survey set forth in § 9.1.2 (collectively, Current Survey), on or before

362         Current Survey Deadline (§ 3). The Current Survey will be certified by the surveyor to all those who are to receive the Current

    363         Survey.

364          x              9.1.1.  Improvement Location Certificate. If the box in this § 9..1.1 is checked, r Seller x Buyer will order or

    365         provide, and pay, on or before Closing, the cost of an Improvement Location Certificate.

366          ❑              9.1.2.   Other Survey. If the box in this § 9.1.2 is checked, a Current Survey, other than an Improvement Location

    367         Certificate, will be an ❑ Improvement Survey Plat, or ❑                   . The parties agree that payment of the cost of

    368         the Current Survey and obligation to order or provide the Current Survey are as follows:

    369         SELLER

370

371

372               9.2.   Current Survey Objection. Buyer has the right to review and object to the Current Survey. If the Current Survey is

    373         not timely received by Buyer or is unsatisfactory to Buyer, in Buyer's sole subjective discretion, Buyer may, on or before Current

    374         Survey Objection Deadline (§ 3), notwithstanding § 8.3 or § 13:

375                    9.2.1.  Notice to Terminate. Notify Seller in writing that this Contract is terminated; or

    376                    9.2.2.  Current Survey Objection. Deliver to Seller a written description of any matter that was to be shown or is

377         shown in the Current Survey that is unsatisfactory and that Buyer requires Seller to correct.

378               9.3.  Current Survey Resolution. If a Current Survey Objection is received by Seller, on or before Current Survey

379         Objection Deadline (§ 3), and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Current Survey

380         Resolution Deadline (§ 3), this Contract will terminate on the Current Survey Resolution Deadline (§ 3), unless Seller receives

381         Buyer's written withdrawal of the Current Survey Objection before such termination, i.e., on or before expiration of Current

382         Survey Resolution Deadline (§ 3).

383

411                       DISCLOSURE, INSPECTION AND DUE DILIGENCE

 

412         10.  PROPERTY DISCLOSURE, INSPECTION, INDEMNITY, INSURABILITY, DUE DILIGENCE AND SOURCE

413         OF WATER.

414               10.1.  Seller's Property Disclosure. On or before Seller's Property Disclosure Deadline (§ 3), Seller agrees to deliver to

 

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415         Buyer the most current version of the applicable Colorado Real Estate Commission's Seller's Property Disclosure form completed

416         by Seller to Seller's actual knowledge, current as of the date of this Contract.

417                10.2:   Inspection Objection. Unless otherwise provided in this Contract, Buyer acknowledges that Seller is conveying the

418         Property to Buyer in an "as is" condition, "where is" and "with all faults". Colorado law requires that Seller disclose to Buyer any

392        latent defects actually known by Seller. Disclosure of latent defects must be in writing. Buyer, acting in good faith, has the right to

393         have inspections (by one or more third parties, personally or both) of the Property and Inclusions (Inspection), at Buyer's expense.

394        If (1) the physical condition of the Property, including, but not limited to, the roof, walls, structural integrity of the Property, the

395         electrical, plumbing, HVAC and other mechanical systems of the Property, (2) the physical condition of the Inclusions, (3) service

396         to the Property (including utilities and communication services), systems and components of the Property (e.g. heating and

397         plumbing), (4) any proposed or existing transportation. project, road, street or highway, or (5) any other activity, odor or noise

398         (whether on or off the Property) and itsFffect, or expected effect?on the Property or its occupants is unsatisfactory, in Buyer's sole

399          subjective discretian, Buyer may, on or befoi(e Inspection Objection Deadline ( 3'

400                   10.2.1.  Notice to Terminate. Notify Seller in writing that this Contract is terminated; or

401                   10.2.2, Inspection Objection. Deliver to Seller a written description of any unsatisfactory physical condition that

402         Buyer requires Seller to correct.

403                  10.3.  Inspection Resolution. If an Inspection Objection is received by Seller, on or before Inspection Objection

404         Deadline (§ 3), and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution

405         Deadline (§ 3), this Contract will terminate on Inspection Resolution Deadline (§ 3), unless Seller receives Buyer's written

406         withdrawal of the Inspection Objection before such termination, i.e., on or before expiration of Inspection Resolution Deadline

407         (§ 3).

408               10.4.  Damage, Liens and Indemnity. Buyer, except as otherwise provided in this Contract or other written agreement

409         between the parties, is responsible for payment for all inspections, tests, surveys, engineering reports, or other reports performed at

410         Buyer's request (Work) and must pay for any damage that occurs to the Property and Inclusions as a result of such Work. Buyer

411         must not permit claims or liens of any kind against the Property for Work performed on the Property. Buyer agrees to indemnify,

412         protect and hold Seller harmless from and against any liability, damage, cost or expense incurred by Seller and caused by any such

413         Work, claim, or lien. This indemnity includes Seller's right to recover all costs and expenses incurred by Seller to defend agains

414         any such liability, damage, cost or expense, or to enforce this section, including Seller's reasonable attorney fees, legal fees and

415    expenses. The provisions of this section survive the termination of this Contract. This § 10.4 does not apply to items performed

416    pursuant to an Inspection Resolution.

417    10.5. Insurability. Buyer has the right to review and object to the availability, terms and conditions of and premium for

418    property insurance (Property Insurance). Buyer has the Right to Terminate under § 25.1, on or before Property Insurance

419    Objection Deadline (§ 3), based on any unsatisfactory provision of the Property Insurance, in Buyer’s sole subjective discretion.

420    10.6. Due Diligence.

421    10.6.1. Due Diligence Documents. If the respective box is checked, Seller agrees to deliver copies of the following

422    documents and information pertaining to the Property (Due Diligence Documents) to Buyer on or before Due Diligence

423    Documents Delivery Deadline (§ 3):

424   x 10.6.1.1. All contracts relating to the operation, maintenance and management of the Property;

425            x      10.6.1.2. Property tax bills for the last              years;

426   x  10.6.1.3. As-built construction plans to the Property and the tenant improvements, including architectural,

427     electrical, mechanical, and structural systems, engineering reports, and permanent Certificates of Occupancy, to the extent now

428     available;

429  x          10.6.1.4. A list of all Inclusions to be conveyed to Buyer;

430  x  10.6.1.5. Operating statements for the past                      years;

431  x          10.6.1.6. A rent roll accurate and correct to the date of this Contract;

432  x  10.6.1.7. All current leases, including any amendments or other occupancy agreements, pertaining to the

433     Property. Those leases or other occupancy agreements pertaining to the Property that survive Closing are as follows (Leases):

434

435

436

437  x  10.6.1.8. A schedule of any tenant improvement work Seller is obligated to complete but has not yet been

438       completed and capital improvement work either scheduled or in process on the date of this Contract;

439    x   10.6.1.9. All insurance policies pertaining to the Property and copies of any claims which have been made

440      for the past 2 YEARS years;

468    r    10.6.1.10. Soils reports, Surveys and engineering reports or data pertaining to the Property (if not delivered

469      earlier under § 8.3);

470    r    10.6.1.11. Any and all existing documentation and reports regarding Phase I and II environmental reports,

471      letters, test results, advisories, and similar documents respective to the existence or nonexistence of asbestos, PCB transformers, or

 

 

 

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472      other toxic hazardous or contaminated substances, and/or underground storage tanks and/or radon gas. If no reports are in Seller’s

473      possession or known to Seller, Seller warrants that no such reports are in Seller’s possession or known to Seller;

474    x   10.6.1.12. Any Americans with Disabilities Act reports, studies or surveys concerning the compliance of

475       the Property with said Act;

449    x   10.6.1.13. All permits, licenses and other building or use authorizations issued by any governmental

450      authority with jurisdiction over the Property and written notice of any violation of any such permits, licenses or use authorizations,

451      if any; and

452   x   10.6.1.14. Other documents and information:

453    ANY AND ALL LICENSES, WARRANTIES, AND/OR LETTERS

454    OF EXPLANATION AS OT THE CONTRACTORS THAT PERFORMED THE WORK THAT HAS ALREADY

          BEEN COMPLETED, THE FORMER OWNERS, OR ANY MATERIAL DEFECTS ACTUALLY KNOWN BY

          SELLER.  I am waiting for building permit, it  encompases zoning, water,

          waste water, min. work done on property.

481                     10.6.2.  Due Diligence Documents Review and Objection. Buyer has the right to review and object to Due

457         Diligence Documents. If the Due Diligence Documents are not supplied to Buyer or are unsatisfactory in Buyer's sole subjective

458         discretion, Buyer may, on or before Due Diligence Documents Objection Deadline (§ 3):

459                           10.6.2.1.  Notice to Terminate. Notify Seller in writing that this Contract is terminated; or

460                           10.6.2.2.  Due Diligence Documents Objection. Deliver to Seller a written description of any

461         unsatisfactory Due Diligence Documents that Buyer requires Seller to correct.

462                     10.6.3.  Due Diligence Documents Resolution. If a Due Diligence Documents Objection is received by Seller, on or

463         before Due Diligence Documents Objection Deadline (§ 3), and if Buyer and Seller have not agreed in writing to a settlement

464         thereof on or before Due Diligence Documents Resolution Deadline (§ 3), this Contract will terminate on Due Diligence

465         Documents Resolution Deadline (§ 3) unless Seller receives Buyer's written withdrawal of the Due Diligence Documents

466         Objection before such termination, i.e., on or before expiration of Due Diligence Documents Resolution Deadline (§ 3).

467                     10.6.4.  Zoning. Buyer has the Right to Terminate under § 25.1, on or before Due Diligence Documents Objection

468         Deadline (§ 3), based on any unsatisfactory zoning and any use restrictions imposed by any governmental agency with jurisfiction

469         over the Property, in Buyer's sole subjective discretion.

470                     10.6.5.  Due Diligence   Environmental, ADA. Buyer has the right to obtain environmental inspections of the

471         Property including Phase I and Phase II Environmental Site Assessments, as applicable.   x Seller ❑ Buyer will order or provide

472          x Phase I Environmental Site Assessment, x Phase II Environmental Site Assessment (compliant with ASTM E1527-05

473         standard practices for Environmental Site Assessments) and/or ❑                          , at the expense of xSeller ❑

474         Buyer (Environmental Inspection). In addition, Buyer, at Buyer's expense, may also conduct an evaluation whether the Property

475         complies with the Americans with Disabilities Act (ADA Evaluation). All such inspections and evaluations must be conducted at

476         such times as are mutually agreeable to minimize the interruption of Seller's and any Seller's tenants' business uses of the

477         Property, if any.

478              If Buyer's Phase I Environmental Site Assessment recommends a Phase 11 Environmental Site Assessment, the

479         Environmental Inspection Objection Deadline (§ 3) will be extended by 5 days (Extended Environmental Inspection

480         Objection Deadline) and if such Extended Environmental Inspection Objection Deadline extends beyond the Closing Date (§ 3),

481         the Closing Date (§ 3) will be extended a like period of time. In such event, x Seller ❑ Buyer must pay the cost for such Phase

482         II Environmental Site Assessment.

483              Notwithstanding Buyer's right to obtain additional environmental inspections of the Property in this § 10.6.5, Buyer has the

484         Right to Terminate under § 25.1, on or before Environmental Inspection Objection Deadline (§ 3), or if applicable the Extended

485         Environmental Inspection Objection Deadline, based on any unsatisfactory results of Environmental Inspection, in Buyer's sole

486         subjective discretion.

487              Buyer has the Right to Terminate under § 25.1, on or before ADA Evaluation Objection Deadline (§ 3), based on any

488         unsatisfactory ADA Evaluation, in Buyer's sole subjective discretion.

489               10.7.  Conditional Upon Sale of Property. This Contract is conditional upon the sale and closing of that certain property

490         owned by Buyer and commonly known as                                                          . Buyer has the Right to Terminate under § 25.1

491         effective upon Seller's receipt of Buyer's Notice to Terminate on or before Conditional Sale Deadline (§ 3) if such property is not

492         sold and closed by such deadline. This § 10.7 is for the sole benefit of Buyer. If Seller does not receive Buyer's Notice to

493         Terminate on or before Conditional Sale Deadline (§ 3), Buyer waives any Right to Terminate under this provision.

520               10.8.  Source of Potable Water (Residential Land and Residential Improvements Only). Buyer ❑ Does ❑ Does Not

521         acknowledge receipt of a copy of Seller's Property Disclosure or Source of Water Addendum disclosing the source of potable

522         water for the Property. Buyer ❑ Does ❑ Does Not acknowledge receipt of a copy of the current well permit. x There is No Well.

523         Note to Buyer: SOME WATER PROVIDERS RELY, TO VARYING DEGREES, ON NONRENEWABLE GROUND

524        WATER. YOU MAY WISH TO CONTACT YOUR PROVIDER (OR INVESTIGATE THE DESCRIBED SOURCE) TO

525         DETERMINE THE LONG-TERM SUFFICIENCY OF THE PROVIDER'S WATER SUPPLIES.

 

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526                  10.9. Carbon Monoxide Alarms. Note: If the improvements on the Property have a fuel-fired heater or appliance a         

527   fireplace, or an attached garage and include one or more rooms lawfully used for sleeping purposes (Bedroom), the. parties

528   acknowledge that Colorado Law requires the Seller assure the Property has an operational carbon monoxide alarm installed within

529   fifteen feet of the entrance to each Bedroom or in a location as required by the applicable building code.

530       10.10. Lead-Based Paint. Unless exempt, if the improvements on the Property include one or more residential dwellings

531   for which a building permit was issued prior to January I, 1978, this Contract is. void unless (I) a completed Lead-Based Paint

532    Disclosure (Sales) form is signed by Seller, the required real estate licensees and Buyer, and (2) Seller receives the completed and

533    fully executed form prior the time when this Contract is signed by all parties. Buyer acknowledges timely receipt of a completed

534    Lead-Based Paint Disclosure (Sales) form signed by Seller and the real estate licensees.

535      10.11. Methamphetamine Disclosure. If Seller knows that methamphetamine was ever manufactured, processed, cooked.

536    disposed of, used or stored at the Property, Seiler is required to disclose such fact. No disclosure is required if the Property was

537    remediated in accordance with state standards and other requirements are fulfilled pursuant to § 25-18.5-102, C.R.S. Buyer further

538    acknowledges that Buyer has the right to engage in certified hygienist or Industrial hygienist to test whether the Property has ever

539    been used as a methamphetamine laboratory. Buyer has the Right to Terminate under § 25.1, upon Seller's receipt of Buyer's

540    written Notice to Terminate, notwithstanding any other provision of this Contract, based on Buyer’s test results that indicate the

541    Property has been contaminated with methamphetamine, but has not been remediated to meet the standards established by rules of

542    the State Board of Health promulgated pursuant to § 25-18.5-102. C.R.S. Buyer must promptly give written notice to Seller of the

543    results of the test.

544      10.12, Existing Leases; Modification of Existing Leases; New Leases. Seller states that none of the Leases to be assigned

545    to the Buyer at the time of Closing contain any rent concessions, rent reduction or rent abatements except as disclosed in the

546    Lease or other writing received by-Buyer; Seller will not alter, modify, extend or cancel any of the Lease nor will Seller

547    enter into any new leases: affecting-the Property without the prior written consent of Buyer, which consent will not be unreasonably

548    withheld or delayed.

 

549         11.  TENANT ESTOPPEL STATEMENTS.

550               11.1.  Tenant Estoppel Statements Conditions. Buyer has the right to review and object to any Estoppel Statements.

551         Seller must obtain and deliver to Buyer on or before Tenant Estoppel Statements Deadline (§ 3), statements in a form and

552         substance reasonably acceptable to Buyer, from each occupant or tenant at the Property (Estoppel Statement) attached to a copy of

553         the Lease stating:

554                     111.1.            The commencement date of the Lease and scheduled termination date of the Lease;

555                     11.1.2.   That said Lease is in full force and effect and that there have been no subsequent modifications or

556         amendments;

513                     11.1.3.   The amount of any advance rentals paid, rent concessions given, and deposits paid to Seller;

514                     11.1.4.   The amount of monthly (or other applicable period) rental paid to Seller;

515                     11.1.5.            That there is no default under the terms of said Lease by landlord or occupant; and

516                     11.1.6.   That the Lease to which the Estoppel is attached is a true, correct and complete copy of the Lease demising

517         the premises it describes.

518               11.2.  Tenant Estoppel Statements Objection. Buyer has the Right to Terminate under § 25.1, on or before Tenant

519        Estoppel Statements Objection Deadline (§ 3), based on any unsatisfactory Estoppel Statement, in Buyer's sole subjective

520         discretion, or if Seller fails to deliver the Estoppel Statements on or before Tenant Estoppel Statements Deadline (§ 3). Buyer

521         also has the unilateral right to waive any unsatisfactory Estoppel Statement.

522

523                                                                CLOSING PROVISIONS

 

524         12.  CLOSING DOCUMENTS, INSTRUCTIONS AND CLOSING.

 

525               12.1.  Closing Documents and Closing Information. Seller and Buyer will cooperate with the Closing Company to

526         enable the Closing Company to prepare and deliver documents required for Closing to Buyer and Seller and their designees. If

527         Buyer is obtaining a new loan to purchase the Property, Buyer acknowledges Buyer's lender is required to provide the Closing

528         Company, in a timely manner, all required loan documents and financial information concerning Buyer's new loan. Buyer and

529         Seller will furnish any additional information and documents required by Closing Company that will be necessary to complete this

530         transaction. Buyer and Seller will sign and complete all customary or reasonably required documents at or before Closing.

575               12.2.   Closing Instructions. Colorado Real Estate Commission's Closing Instructions ❑ Are x Are Not executed with

576         this Contract.

577               12.3.   Closing. Delivery of deed from Seller to Buyer will be at closing (Closing). Closing will be on the date specified as

578         the Closing Date (§ 3) or by mutual agreement at an earlier date. The hour and place of Closing will be as designated by

579          COREY WIEGAND.

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580              12.4.  Disclosure of Settlement Costs. Buyer and Seller acknowledge that costs, quality, and extent of service vary

581         between different settlement service providers (e.g., attorneys, lenders, inspectors and title companies).

 

582         13.  TRANSFER OF TITLE. Subject to tender of payment at Closing as required herein and compliance by Buyer with the

583         other terms and provisions hereof, Seller must execute and deliver a good and sufficient GENERAL WARRANTEE deed

584         to Buyer, at Closing, conveying the Property free and clear of all taxes except the general taxes for the year of Closing. Except as

585         provided herein, title will be conveyed free and clear of all liens, including any governmental liens for special improvements

586         installed as of the date of Buyer's signature hereon, whether assessed or not. Title will be conveyed subject to:

587               13.1.   Those specific Exceptions described by reference to recorded documents as reflected in the Title Documents

588         accepted by Buyer in accordance with Record Title (§ 8.2),

589               13.2.   Distribution utility easements (including cable TV),

590               13.3.   Those specifically described rights of third parties not shown by the public records of which Buyer has actual

591         knowledge and which were accepted by Buyer in accordance with Off-Record Title (§ 8.3) and Current Survey Review (§ 9),

592               13.4.   Inclusion of the Property within any special taxing district,

593               13.5.   Other                                                                                                 .

 

552         14.  PAYMENT OF ENCUMBRANCES. Any encumbrance required to be paid will be paid at or before Closing from the

553         proceeds of this transaction or from any other source.

 

554         15.   CLOSING COSTS, CLOSING FEE, ASSOCIATION FEES AND TAXES.

555               15.1.   Closing Costs. Buyer and Seller must pay, in Good Funds, their respective closing costs and all other items required

556         to be paid at Closing, except as otherwise provided herein.

557               15.2.   Closing Services Fee. The fee for real estate closing services must be paid at Closing by ❑ Buyer ❑ Seller

558          x  One-Half by Buyer and One-Half by Seller ❑ Other

559               15.3.  Status Letter and Record Change Fees. Any fees incident to the issuance of Association's statement of

560         assessments (Status Letter) must be paid by ❑ Buyer ❑ Seller ❑ One-Half by Buyer and One-Half by Seller ❑ None.

561         Any record change fee assessed by the Association including, but not limited to, ownership record transfer fees regardless of name

562         or title of such fee (Association's Record Change Fee) must be paid by ❑ Buyer ❑ Seller ❑ One-Half by Buyer and One-

563         Half by Seller ❑ None.

564               15.4.  Local Transfer Tax.❑ The Local Transfer Tax of              % of the Purchase Price must be paid at Closing by

565          ❑ Buyer r Seller ❑ One-Half by Buyer and One-Half by Seller ❑ None.

566               15.5. Private Transfer Fee. Private transfer fees and other fees due to a transfer of the Property, payable at Closing, such

567         as community association fees, developer fees and foundation fees, must be paid at Closing by ❑ Buyer x Seller ❑ One-

568         Half by Buyer and One-Half by Seller ❑ None. The Private Transfer fee, whether one or more, is for the following

569         association(s):                                                            in the total amount of                    % of the Purchase

570         Price or $                                                        .

571               15.6.  Water Transfer Fees. The Water Transfer Fees can change. The fees, as of the date of this Contract, do not exceed

572         $                      for:

573               ❑ Water Stock/Certificates                                                  ❑ Water District

574               ❑ Augmentation Membership                                             ❑ Small Domestic Water Company       ❑                                  

575         and must be paid at Closing by ❑ Buyer ❑ Seller x One-Half by Buyer and One-Half by Seller ❑ None.

576               15.7.  Sales and Use Tax. Any sales and use tax that may accrue because of this transaction must be paid when due by

577          ❑ Buyerx Seller ❑ One-Half by Buyer and One-Half by Seller ❑ None.

 

578         16.  PRORATIONS. The following will be prorated to Closing Date (§ 3), except as otherwise provided:

579               16.1.  Taxes. Personal property taxes, if any, special taxing district assessments, if any, and general real estate taxes for the

580         year of Closing, based on ❑ Taxes for the Calendar Year Immediately Preceding Closing x Most Recent Mill Levy and

581         Most Recent Assessed Valuation, or ❑ Other

582               16.2.  Rents. Rents based on ❑ Rents Actually Received ❑ Accrued. At Closing, Seller will transfer or credit to

583         Buyer the security deposits for all Leases assigned, or any remainder after lawful deductions, and notify all tenants in writing of

584         such transfer and of the transferee's name and address. Seller must assign to Buyer all Leases in effect at Closing and Buyer must

585         assume Seller's obligations under such Leases.

629               16.3.  Association Assessments. Current regular Association assessments and dues (Association Assessments) paid in

630         advance will be credited to Seller at Closing. Cash reserves held out of the regular Association Assessments for deferred

631         maintenance by the Association will not be credited to Seller except as may be otherwise provided by the Governing Documents.

632         Buyer acknowledges that Buyer may be obligated to pay the Association, at Closing, an amount for reserves or working capital.

633         Any special assessment assessed prior to Closing Date (§ 3) by the Association will be the obligation of ❑ Buyer xSeller.

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634         Except however, any special assessment by the Association for improvements that have been installed as of the date of Buyer's

635         signature hereon, whether assessed prior to or after Closing, will be the obligation of Seller. Seller represents that the Association

636         Assessments are currently payable at approximately $                              per                              and that there are no unpaid regular

637         or special assessments against the Property except the current regular assessments and

638         Such assessments are subject to change as provided in the Governing Documents. Seller agrees to promptly request the

639         Association to deliver to Buyer before Closing Date (§ 3) a current Status Letter.

640               16.4.  Other Prorations. Water and sewer charges, propane, interest on continuing loan, and

641               16.5.  Final Settlement. Unless otherwise agreed in writing, these prorations are final.

 

642         17.  POSSESSION. Possession of the Property will be delivered to Buyer on Possession Date (§ 3) at Possession Time (§ 3),

600         subject to the Leases as set forth in § 10.6.1.7.

601

602              If Seller, after Closing, fails to deliver possession as specified, Seller will be subject to eviction and will be additionally liable

603         to Buyer for payment of $ 100. 00 per day (or any part of a day notwithstanding § 18.1) from Possession Date (§ 3) and

604         Possession lime (§ 3) until possession is delivered,

605

606                                                                GENERAL PROVISIONS

 

607         18.  DAY; COMPUTATION OF PERIOD OF DAYS, DEADLINE.

608               18.1.  Day. As used in this Contract, the term "day" means the entire day ending at 11:59 p.m., United States Mountain

609         Time (Standard or Daylight Savings as applicable).

610               18.2.  Computation of Period of Days, Deadline. In computing a period of days, when the ending date is not specified,

611         the first day is excluded and the last day is included (e.g., three days after MEC). If any deadline falls on a Saturday, Sunday or

612         federal or Colorado state holiday (Holiday), such deadline x Will ❑ Will Not be extended to the next day that is not a

613         Saturday, Sunday or Holiday. Should neither box be checked, the deadline will not be extended.

 

614         19.  CAUSES OF LOSS, INSURANCE; DAMAGE TO INCLUSIONS AND SERVICES; CONDEMNATION; AND

615         WALK-THROUGH. Except as otherwise provided in this Contract, the Property, Inclusions or both will be delivered in the

616         condition existing as of the date of this Contract, ordinary wear and tear excepted.

617               19.1.  Causes of Loss, Insurance. In the event the Property or inclusions are damaged by fire, other perils or causes of

618         loss prior to Closing in an amount of not more than ten percent of the total Purchase Price (Property Damage), Seller is obligated

619         to repair the same before Closing Date (§ 3). Buyer has the Right to Terminate under § 25.1, on or before Closing Date (§ 3), if

620         the Property Damage is not repaired before Closing Date (§ 3) or if the damage exceeds such sum. Should Buyer elect to carry out

621         this Contract despite such Property Damage, Buyer is entitled to a credit at Closing for all insurance proceeds that were received

622         by Seller (but not the Association, if any) resulting from such damage to the Property and Inclusions, plus the amount of any

623         deductible provided for in such insurance policy. Such credit must not exceed the Purchase Price. In the event Seller has not

624         received such insurance proceeds prior to Closing, the parties may agree to extend the Closing Date (§ 3) or, at the option of

625         Buyer, Seller must assign such proceeds at Closing, plus credit Buyer the amount of any deductible provided for in such insurance

626         policy, but not to exceed the total Purchase Price.

627               19.2.  Damage, Inclusions and Services. Should any Inclusion or service (including utilities and communication

628         services), system, component or fixture of the Property (collectively Service), e.g., heating or plumbing, fail or be damaged

629         between the date of this Contract and Closing or possession, whichever is earlier, then Seller is liable for the repair or replacement

630         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

631         maintenance or replacement of such Inclusion or Service is not the responsibility of the Association, if any, less any insurance

632         proceeds received by Buyer covering such repair or replacement. If the failed or damaged Inclusion or Service is not repaired or

633         replaced on or before Closing or possession, whichever is earlier, Buyer has the Right to Terminate under § 25.1, on or before

634         Closing Date (§ 3), or, at the option of Buyer, Buyer is entitled to a credit at Closing for the repair or replacement of such

635         Inclusion or Service. Such credit must not exceed the Purchase Price. If Buyer receives such a credit, Seller's right for any claim

636         against the Association, if any, will survive Closing. Seller and Buyer are aware of the existence of pre-owned home warranty

637         programs that may be purchased and may cover the repair or replacement of such Inclusions.

638               19.3.  Condemnation. In the event Seller receives actual notice prior to Closing that a pending condemnation action may

639         result in a taking of all or part of the Property or Inclusions, Seller must promptly notify Buyer, in writing, of such condemnation

683         action. Buyer has the Right to Terminate under § 25.1, on or before Closing Date (§ 3), based on such condemnation action, in

684         Buyer's sole subjective discretion. Should Buyer elect to consummate this Contract despite such diminution of value to the

685         Property and Inclusions, Buyer is entitled to a credit at Closing for all condemnation proceeds awarded to Seller for the diminution

686         in the value of the Property or Inclusions but such credit will not include relocation benefits or expenses, or exceed the Purchase

687         Price.

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688               19.4.  Walk-Through and Verification of Condition. Buyer, upon reasonable notice, has the right to walk through the

689         Property prior to Closing to verify that the physical condition of the Property and Inclusions complies with this Contract.

 

690         20.  RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this Contract, Buyer and Seller acknowledge

691         that the respective broker has advised that this Contract has important legal consequences and has recommended the examination

692         of title and consultation with legal and tax or other counsel before signing this Contract.

 

693         21.  TIME OF ESSENCE, DEFAULT AND REMEDIES. Time is of the essence hereof. If any note or check received as

694         Earnest Money hereunder or any other payment due hereunder is not paid, honored or tendered when due, or if any obligation

695         hereunder is not performed or waived as herein provided, the nondefaulting party has the following remedies:

696               21.1.  If Buyer is in Default:

697          ❑              21.1.1.  Specific Performance. Seller may elect to treat this Contract as canceled, in which case all Earnest Money

698         (whether or not paid by Buyer) will be paid to Seller and retained by Seller; and Seller may recover such damages as may be

699         proper; or Seller may elect to treat this Contract as being in full force and effect and Seller has the right to specific performance or

700         damages, or both.

661                    21.1.2.  Liquidated Damages, Applicable. This § 21.1.2 applies unless the box in § 21.1.1. is checked. All

662         Earnest Money (whether or not paid by Buyer) will be paid to Seller, and retained by Seller. Both parties will thereafter be released

663         from all obligations hereunder. It is agreed that the Earnest Money specified in § 4.1 is LIQUIDATED DAMAGES, and not a

664         penalty, which amount the parties agree is fair and reasonable and (except as provided in §§ 10.4, 22, 23 and 24), said payment of

665         Earnest Money is SELLER'S ONLY REMEDY for Buyer's failure to perform the obligations of this Contract. Seller expressly

666         waives the remedies of specific performance and additional damages.

667               21.2.  If Seller is in Default: Buyer may elect to treat this Contract as canceled, in which case all Earnest Money received

668         hereunder will be returned and Buyer may recover such damages as may be proper, or Buyer may elect to treat this Contract as

669         being in full force and effect and Buyer has the right to specific performance or damages, or both.

 

670         22.  LEGAL FEES, COST AND EXPENSES. Anything to the contrary herein notwithstanding, in the event of any arbitration

671         or litigation relating to this Contract, prior to or after Closing Date (§ 3), the arbitrator or court must award to the prevailing party

672         all reasonable costs and expenses, including attorney fees, legal fees and expenses.

 

673         23.  MEDIATION. If a dispute arises relating to this Contract, prior to or after Closing, and is not resolved, the parties must first

674         proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person

675         who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the

676         dispute must agree, in writing, before any settlement is binding. The parties will jointly appoint an acceptable mediator and will

677         share equally in the cost of such mediation. The mediation, unless otherwise agreed, will terminate in the event the entire dispute is

678         not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at the party's

679         last known address. This section will not alter any date in this Contract, unless otherwise agreed.

 

680         24.  EARNEST MONEY DISPUTE. Except as otherwise provided herein, Earnest Money Holder must release the Earnest

681         Money following receipt of written mutual instructions, signed by both Buyer and Seller. In the event of any controversy regarding

682         the Earnest Money, Earnest Money Holder is not required to release the Earnest Money. Earnest Money Holder, in its sole

683         subjective discretion, has several options: (l) wait for any proceeding between Buyer and Seller; (2) interplead all parties and

684         deposit Earnest Money into a court of competent jurisdiction, (Earnest Money Holder is entitled to recover court costs and

685         reasonable attorney and legal fees incurred with such action); or (3) provide notice to Buyer and Seller that unless Earnest Money

 

686         Holder receives a copy of the Summons and Complaint or Claim (between Buyer and Seller) containing the case number of the

687         lawsuit (Lawsuit) within one hundred twenty days of Earnest Money Holder's notice to the parties, Earnest Money Holder is

688         authorized to return the Earnest Money to Buyer. In the event Earnest Money Holder does receive a copy of the Lawsuit, and has

689         not interpled the monies at the time of any Order, Earnest Money Holder must disburse the Earnest Money pursuant to the Order

690         of the Court. The parties reaffirm the obligation of Mediation (§ 23). This Section will survive cancellation or termination of this

691         Contract.

 

732         25.  TERMINATION.

733               25.1.  Right to Terminate. If a party has a right to terminate, as provided in this Contract (Right to Terminate), the

734         termination is effective upon the other party's receipt of a written notice to terminate (Notice to Terminate), provided such written

735         notice was received on or before the applicable deadline specified in this Contract. If the Notice to Terminate is not received on or

736         before the specified deadline, the party with the Right to Terminate accepts the specified matter,, document or condition as

737         satisfactory and waives the Right to Terminate under such provision.

738               25.2.  Effect of Termination. In the event this Contract is terminated, all Earnest Money received hereunder will be

739         returned and the parties are relieved of all obligations hereunder, subject to §§ 10.4, 22, 23 and 24.

 

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740         26.  ENTIRE AGREEMENT, MODIFICATION, SURVIVAL. This Contract, its exhibits and specified addenda, constitute

741         the entire agreement between the parties relating to the subject hereof, and any prior agreements pertaining thereto, whether oral or

742         written, have been merged and integrated into this Contract. No subsequent modification of any of the terms of this Contract is

743         valid, binding upon the parties, or enforceable unless made in writing and signed by the parties. Any right or obligation in this

744         Contract that, by its terms, exists or is intended to be performed after termination or Closing survives the same.

 

745         27.        NOTICE, DELIVERY, AND CHOICE OF LAW.

746               27.1.  Physical Delivery. All notices must be in writing, except as provided in § 27.2. Any document, including a signed

747         document or notice, from or on behalf of Seller, and delivered to Buyer is effective when physically received by Buyer, any

748         signatory on behalf of Buyer, any named individual of Buyer, any representative of Buyer, or Brokerage Firm of Broker working

749         with Buyer (except for delivery, after Closing, of the notice requesting mediation described in § 23 and except as provided in

750         § 27.2). Any document, including a signed document or notice, from or on behalf of Buyer, and delivered to Seller is effective

751         when physically received by Seller, any signatory on behalf of Seller, any named individual of Seller, any representative of Seller,

752         or Brokerage Firm of Broker working with Seller (except for delivery, after Closing, of the notice requesting mediation described

753         in § 23 and except as provided in § 27.2).

754               27.2.   Electronic Delivery. As an alternative to physical delivery, any document, including a signed document or written

755         notice, may be delivered in electronic form only by the following indicated methods:     x Facsimile xEmail

756          x Internet. If no box is checked, this § 27.2 is not applicable and § 27.1 governs notice and delivery. Documents with original

757         signatures will be provided upon request of any party.

758               27.3.  Choice of Law. This Contract and all disputes arising hereunder are governed by and construed in accordance with

759         the laws of the State of Colorado that would be applicable to Colorado residents who sign a contract in Colorado for property

760         located in Colorado.

 

761         28.  NOTICE OF ACCEPTANCE, COUNTERPARTS. This proposal will expire unless accepted in writing, by Buyer and

762         Seller, as evidenced by their signatures below, and the offering party receives notice of such acceptance pursuant to § 27 on or

763         before Acceptance Deadline Date (§ 3) and Acceptance Deadline Time (§ 3). If accepted, this document will become a contract

764         between Seller and Buyer. A copy of this Contract may be executed by each party, separately, and when each party has executed a

765         copy thereof, such copies taken together are deemed to be a full and complete contract between the parties.

 

766         29.  GOOD FAITH. Buyer and Seller acknowledge that each party has an obligation to act in good faith, including but not

767         limited to exercising the rights and obligations set forth in the provisions of Financing Conditions and Obligations (§ 5), Title

768         Insurance, Record Title and Off-Record Title (§ 8), Current Survey Review (§ 9) and Property Disclosure, Inspection,

769         Indemnity, Insurability, Due Diligence and Source of Water (§ 10).

770

 

771                                               ADDITIONAL PROVISIONS AND ATTACHMENTS

 

772         30.  ADDITIONAL PROVISIONS. (The following additional provisions have not been approved by the Colorado Real Estate

773         Commission.)

774         ITEM 1.  BUYER IS RESERVES THE RIGHT' TO CHANGE FINANCING OPTIONS AND PROCEED

       WITH A CONENTIONAL LOAN, OR CASH TRANSACTIN IF SUFFICIENT FUNDS ARE RAISTED

       BETWEEN EXECUTION OF THIS CONTRACT TO BUY AND SELL AND THE LOAN APPLICATION

       DEADLINE.

 

      ITEM 2.  SELLER AGREES TO ITEM 1 AS LONG AS HIS NET PROCEEDS FROM SALE ARE THE 

      SAME.

 

      ITEM 3.  BUYER MAY ASSIGN THIS CONTRACT TO ONE OF IT'S AFFILIATES IF DEEMED

      NECESSARY BY BUYER'S ATTORNEY.

 

      ITEM 4.  BUYER AGREES TO THE RIGHT TO SHOW THE PREMISES DURING THE CONTRACT PERIOD 

      TO POTENTIAL TENANTS.

 

      ITEM 5.  SELLER AGREES TO GIVE BUYER FULL ACCESS TO THE PROPERTY AFTER BUYER'S

      EARNEST MONEY HAS BEEN DEPOSITED.

 

      ITEM 6.  BUYER IS A PUBLIC COMPANY AND THE CEO IS A LICENSED REALTOR IN THE

      STATE OF COLORADO.

   

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775

776

777         31.  ATTACHMENTS.

778               31.1.   The following attachments are a part of this Contract:

779    FLYER TENDERED AT SHOWING ON 7.21.14

781      Buyer to verify all facts

782               31.2.   The following disclosure forms are attached but are not a part of this Contract:

783

                                                                      SIGNATURES

784

785

Buyer's Name: J DONE LLC

 

/s/    JAMES B. WIEGAND              7/22/2014                     

Buyer's Signature   JAMES WIEGAND       Date

 

	Address:	 
	 	 
	Phone No.: 	 
	 	 
	Fax No.:	 
	 	 
	Electronic Address:	 
	 	 

 

 

 

786         [NOTE: If this offer is being countered or rejected, do not sign this document. Refer to § 32]

 

Seller's Name: Thomas S. Yang

 

/s/ Thomas S. Yang                 7/22/2014     

Seller's Signature                                                                                             Date

 

 

	Address:	 XXXXXXXXXXXXXXXXX
	 	 
	Phone No.: 	 XXXXXXXXXXXXXXXXX
	 	 
	Fax No.:	 XXXXXXXXXXXXXXXXX
	 	 
	Electronic Address:	 XXXXXXXXXXXXXXXXX
	 	 

 

787

788         32.  COUNTER; REJECTION. This offer is ❑ Countered ❑ Rejected.

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

 

790                                            END OF CONTRACT TO BUY AND SELL REAL ESTATE

 

33. BROKER'S ACKNOWLEDGMENTS AND COMPENSATION DISCLOSURE. (To be completed by Broker working with Buyer)

 

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Broker x Does ❑ Does Not acknowledge receipt of Earnest Money deposit and, while not a party to the Contract, agrees to cooperate upon request with any mediation concluded under § 23. Broker agrees that if Brokerage Firm is the Earnest Money

 

Holder and, except as provided in § 24, if the Earnest Money has not already been returned following receipt of a Notice to

Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder's receipt of the

executed written mutual instructions, provided the Earnest Money check has cleared.

 

Broker is working with Buyer as a x Buyer's Agent ❑ Seller's Agent ❑ Transaction-Broker in this transaction. ❑ This is a Change of Status.

 

Brokerage Firm's compensation or commission is to be paid by  ❑ Listing Brokerage Firm ❑ Buyer x Other NO COMMISSION 

WILL BE PAID

Brokerage Firm's Name:                   Home  Treasure Finders Inc

Broker's Name:                                  Corey Wiegand

 

/s/ Corey Wiegand                  7/22/2014       

Broker's Signature:                           Date

 

Address:                                   3412 W 62nd Ave

           Denver,  CO 80221 

Phone No.:        (720)273-2398

Fax No.:         (303) 487-1909  

Electronic Address:                HomeTreasureFinder@gmai1.corn

 

34. BROKER'S ACKNOWLEDGMENTS AND COMPENSATION DISCLOSURE. (To be completed by Broker working with Seller)

 

Broker ❑ Does ❑ Does Not acknowledge receipt of Earnest Money deposit and, while not a party to the Contract, agrees to cooperate upon request with any mediation concluded under § 23. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in § 24, if the Earnest Money has not already been returned following receipt of a Notice to

 

Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder's receipt of the

 

executed written mutual instructions, provided the Earnest Money check has cleared.

 

Broker is working with Seller as a ❑ Seller's Agent ❑ Buyer's Agent ❑ Transaction-Broker in this transaction. ❑ This is a Change of Status.

 

Brokerage Firm's compensation or commission is to be paid by ❑ Seller ❑ Buyer ❑ Other

 

Brokerage Firm's Name:                                                                  

Broker's Name:                                   

             

              Broker's Signature:                                                                Date

 

	Address:	 
	 	 
	Phone No.: 	 
	 	 
	Fax No.:	 
	 	 
	Electronic Address:	 
	 	 

 

791

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