Document:

ex101.htm

Exhibit 10.1

 

Motor Sport Country Club

 

Membership Agreement

 

This Motor Sport Country Club Membership Agreement (“Agreement”), when signed by the applicant (“Member”) and accepted by Motor Sport Country Club (“MSCC”), together with the previously executed “Initial Membership Registration Agreement” which is hereby incorporated into and integral to this Agreement, and the Motor Sport Country Club Rules & Regulations as may be in effect from time to time, as specified below, shall constitute the full Agreement between MSCC and Member with respect to Member’s use of the track, paddock, vehicle dynamics area, clubhouse and related Facilities (collectively the “Facilities”) of the Motor Sport Country Club (the ”Club”).

 

This Agreement contains release and indemnification provisions and limitations on MSCC liability. You are urged to read it carefully, as you may be waiving certain rights.

 

The Club is currently a privately owned motor sports park available for the use of Member pursuant to this Agreement. The Club also will be available to Members and non-members for special events scheduled by MSCC. There are plans for MSCC to become a public company.

 

Memberships afford Members a license to make recreational use of the Club Facilities. Payment of the Membership Fee and dues does not grant Member any ownership rights in MSCC or in the Club or its Facilities, or any rights of use or access not specifically set out in this Agreement. Membership does not give a Member the right to use the Club Facilities at all times. The use of the Club Facilities will be restricted at certain times during the year, for example during special events. MSCC, in its sole discretion, reserves the right to refuse use of the Club Facilities to any person.

 

Membership should not be viewed or acquired as an investment, and persons purchasing a membership should not expect to derive any economic benefit from their purchase. Memberships are not transferable. A Member shall in no way be liable for any obligation of MSCC or any other Member.

 

MSCC will construct the Facilities on 1200-acre of the 2600 acre site located at approximately 2 miles south/east of Agate, Colorado. It is currently anticipated that the track will be available for use by the summer of 2011. Construction of the clubhouse is anticipated to commence within three (3) years after completion of the track. Completion of the Facilities is subject to the procurement of necessary permits and governmental approvals, construction financing and may be impacted by other factors beyond MSCC’s control, including but not limited to weather delays.

 

The purpose of this Agreement is to set out the terms and conditions upon which Member will be entitled to use the Facilities of the Motor Sport Country Club, and certain rights and obligations of the parties with respect thereto.

 

  

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1.  MEMBERSHIP AGREEMENTS

 

 1 .1 Membership Classes and Benefits. There are three (3) membership classes: Founding Members; Corporate Members; Regular Members, each having the respective rights and benefits set forth in Attachment A, as the same may be amended from time to time. There are a limited number of Founding Memberships available, specifically fifty (50). In order to purchase a Founding Membership, the Member must be one of the first fifty (50) Members to complete the Membership Registration Agreement form and pay the applicable Membership Fee, and will be entitled to certain additional membership benefits. Upon payment in full of the applicable Membership Fee and the annual dues fixed from time to time by MSCC, Members shall be entitled to the benefits and privileges pertaining to Member’s membership class as defined in Attachment A. MSCC also may offer individually structured memberships on a case-by-case basis, with terms and benefits to be determined.

 

MSCC reserves the right to establish additional membership classes at any time, at its sole discretion, and to offer other and different types or classes of memberships. If offered, Member shall have the right, at his, her or its option, to convert Member’s membership class to any type or class offered for which Member qualifies, and the Membership Fee previously paid shall be applied to any Membership Fee charged for such membership. Unless otherwise specified in this Agreement, under no circumstance will Member be entitled to a refund of his, her or its Membership Fee.

 

Members will enjoy:

 

	
  

	
 Track privileges, shall be subject to reservation requirements and track availability. The Club shall be closed on Mondays. The Club reserves the right to close and/or remain open on legal holidays, at its discretion, and to designate a legal holiday, if open, as a peak session. The Club further reserves the right to close the premises due to weather or other conditions, in its discretion. MSCC reserves the right to establish Founding Member only days, in its sole discretion.

 

 1.2 Membership Fee and Dues. The Membership Fee, current annual dues and other fees applicable to the various membership classes are set forth in Attachment A. Membership Fees, annual dues and other fees are nonrefundable and earned by MSCC upon receipt, unless otherwise stated in this Agreement. The amount of the Membership Fee of new Members and the amounts of the annual dues and other charges applicable to the various membership classes, and the manner of their payment, is subject to change in the sole discretion of MSCC. Any revisions to the membership terms made by MSCC shall be automatically incorporated into and made a part of this Agreement. The timely payment of dues and other charges incurred by Member or Member’s guests is a condition to the use of the Facilities by Member and its Family Members and guests.

 

 1 .3 Track sessions. Peak sessions are from Saturday, Sunday and designated legal holidays, and off-peak sessions are from Tuesday through Friday other than legal holidays designated as peak sessions. Sessions will be defined by class of vehicle, participants’ MSCC drivers license and number of

participants.                      Classes of vehicles for example are racecars, sport cars, open wheel vehicles and

motorcycles. Track session lengths are set at the discretion of MSCC.

 

 1.4 Reservation Requirement. Regular and Corporate and Members will be able to book reservations for use of the track and/or facilities seven (7) days in advance and Founding Members may book reservations for the use of the track and/or facilities fourteen (14) days in advance.

 

 1.5 Paddock and Garage Rentals. Paddock and garage rental space will be made available for an additional fee. The rental costs for paddock and garage space are subject to change in the sole discretion of MSCC.

 

 1 .6 Limitations on Access. Member understands and acknowledges that the rights granted in this Agreement do not limit the right of MSCC to offer use of the facility for any other purpose. Access to and use of all Facilities or other parts of the Facilities of Club by Members and non-members is subject to regulation by MSCC. Access by Member to the track might sometimes be limited.

 

 1.7 No Transfer of Membership. A membership is personal to Member only, and Member may not transfer his or her membership at any time. MSCC shall have the right to suspend the rights and privileges of any Member who advertises the sale of his or her membership or attempts to transfer his or her membership in violation of this provision. Notwithstanding the foregoing, Founding Members shall have a one (1) time option to transfer their membership to an immediate family member, for which a transfer fee may apply; provided, the transferee meets the requirements set forth by MSCC to become a Member, has been approved by MSCC and agreed to have the membership modified to a Regular Membership, rather than a Founding Membership, and will be subject to all dues and fees accordingly.

 

  

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1.8 Family Members. Family Members of Founding and Regular Members shall enjoy the privileges of membership contained in this Agreement so long as they meet the requirements contained in this Agreement and the Member cons ents to their continuing to enjoy such privileges. “Family Members” are herein defined as spouse and children under the age of 22 sharing the Member’s household. Corporate Memberships shall be exclusive to the stated Member, and shall not be inclusive of any Family Members.

 

1 .9 Personal Property. Each Member, Family Member and guest is responsible for his or her personal property. MSCC is not responsible for lost property or property stolen from anywhere at the Club Facilities, and specifically disclaims any such responsibility. Personal property left at the Club Facilities and not claimed within 3fl days shall be cons idered abandoned and may be disposed of by MSCC without notice. No bailment is intended, nor created, by the foregoing sentence.

 

2.  Liability for Use of Property

 

Member is responsible to MSCC for damages to the Facilities caused by Member and his, her or its Family Members and guests, whether resulting from negligence or other cause.

 

3. Conditions to Use of the Track

 

3.1 Medical. Member’s physical and mental condition must be such as to allow him or her to use the track without creating undue or unusual risk to Member or other persons. MSCC may establish regulations regarding the medical condition of persons who use the track and may require Member and/or his, her or its invitees to provide a letter from such person’s physician, or a physician selected by MSCC, confirming that such person is fit to use the track.

 

3.2   Age. No person under the age of 18 shall be permitted to use the track without special authorization from MSCC and a duly executed and notarized parental waiver and release.

 

3.3 Other Restrictions. In the interests of the safety of Members and others, MSCC may from time to time establish regulations limiting or restricting the rights of Members and other persons to use the track.

 

3.4 Waivers and Releases. On an annual basis, or as otherwise required by MSCC, all Members, Family members and their guests will be required to sign a liability waiver and release and an agreement to indemnify MSCC and other releasees in substantially the form attached to this Agreement as Attachment B, as may be amended from time to time as well as any other release or waiver documentation as required by MSCC.

 

3.5 Driver Qualifications. All drivers must have a valid driver’s license issued by an appropriate governmental authority. In addition, in order to use the Club Facilities, each driver must have appropriate racing body license, driver school experience and certification or/and be certified as qualified by MSCC to operate a vehicle on a close circuit course. MSCC will have the right to verify each driver’s qualifications and to reject any driver who does not have acceptable qualifications.

 

3.6   Compliance with Rules and Regulations. Members shall comply at all times with the rules and regulations adopted from time to time by MSCC.

 

  

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4.Advertising and Promotion Release

 

MSCC, its duly authorized agents and assigns, may use Member’s name and likeness and photographic, videotape and other images of Member, or their motor vehicles in any way and for any lawful purpose, and Member hereby relinquishes all rights thereto.

 

5.Indemnity, Warranties, Remedies, Limitation of Liability

 

	
  

	
5.1

	
Acknowledgment. Member acknowledges and agrees that:

 

5.1.1 Use of the Facilities is for the sole benefit of Member;

 

5.1.2 Use of the Facilities is hazardous and involves extraordinary risk of serious personal injury or death, as well as the risk of damage to property;

 

5.1.3 Member freely and willingly accepts and voluntarily assumes all risks of property damage, personal injury or death in connection with Member’s presence at the Club and the use of the Facilities, and the presence at the Club and use of the Club Facilities by his or her Family Members or other invitees;

 

5.1.4 MSCC has based the charges for membership in the Club and the use of its Facilities on the premise that the Member, Member’s Family Members nor anyone asserting rights on his, her or their behalf, will bring any claim against MSCC or other releasees (as defined below), or challenge the right of such person’s to be indemnified as provided in this Section 5; and

 

5.1.5 The nature of the services to be provided under the terms of this Agreement make it appropriate, equitable and essential to provide for the allocation of the risks and liabilities, the limitation of remedies, and the indemnification of MSCC and the other releasees, all as set forth in this Section 5.

 

5.2 Observation of Conditions. In consideration of being permitted to enter any of the Facilities, Member, for Member, Member’s invitees and Member’s personal representatives, heirs and next of kin, acknowledges, agrees and represents that Member will, immediately upon entering any of the Facilities, and continuously thereafter, inspect such area or areas, and Member’s continuing use of the Facilities constitutes an acknowledgement that Member has inspected such area or areas and accepts the same as being safe and reasonably suited for the purpose of Member’s use, and Member further agrees that if at any time Member believes the Facilities or any other part of the Facilities to be unsafe, Member will immediately leave the facility and advise an appropriate representative of MSCC of Member’s observations.

 

5.3. Covenant Not to Sue. Member hereby releases, waives, discharges and covenants not to sue MSCC, its other members, car owners, drivers, pit crews, track workers, any persons in any track or facility, promoters, sponsors, advertisers, and each of them, their respective owners, officers, directors, employees, agents and representatives (herein referred to as “releasees”) from all liability to Member, Member’s personal representatives, assigns and heirs for any and all loss or damage, and any claim or demands therefore on account of injury to Member’s person or property or resulting in the death of Member, whether caused by the negligence of the releasees or otherwise while Member is in or upon the premises , driving, observing or for any other purpose whatsoever making use of the Facilities.

 

5.4. Indemnification. Member hereby agrees to indemnify and save and hold harmless the releasees and each of them from any loss, liability, damage, or cost, including attorneys fees, they may incur due to the negligence of Member or Members guests, a violation by the rules and regulations by the Member or Members guests or invitees or a breach of this Agreement or any agreement between the releasees and the Member, in or upon any track or facility, while competing, observing or for any other purpose whatsoever making use of the Facilities, regardless whether caused by the negligence of any of the releasees or otherwise.

 

  

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5.5 No Warranty. The Facilities and all aspects of membership in the Club are made available to you "as is", and MSCC makes no warranty as to their use or performance. Except to the extent any warranty, representation, term or condition cannot or may not be excluded or limited by law, MSCC makes no warranty or representation (express or implied, whether by statute, common law, custom, usage or otherwise) as to any matter including without limitation merchantability, satisfactory quality, or fitness for any particular purpose.

 

5.6 Limitation of Liability. To the maximum extent permitted by applicable law, in no event will MSCC or the other releasees be liable for any damages, claims or costs whatsoever or any consequential, indirect, incidental or special damages, or any lost profits or lost savings, under any legal theory of liability arising out of this Agreement or the use of or inability to use the Facilities, even if a MSCC representative has been advised of the possibility of such loss, damages, claims or costs or if such possibility was reasonably foreseeable. The foregoing limitations and exclusions apply to the extent permitted by applicable law. MSCC's aggregate liability under or in connection with this Agreement shall be limited to an amount equal to 25% of the Membership Fee paid by the Member. MSCC is acting on behalf of all releasees for the purpose of disclaiming, excluding and limiting obligations, warranties and liability as provided in this Agreement, but in no other respects and for no other purpose.

 

6.  Payment of Dues and Other Charges

 

6.1 Payment. Membership Fees are due as provided for in Attachment A depending on the applicable membership. Following opening of the Club and its Facilities for recreational use, dues, and all sums charged to Member's account on or before the last day of each month shall be due and payable to MSCC on or before the 15th day of the next following month, or on such later date as MSCC may choose to specify. A late fee in an amount to be fixed from time to time shall be payable to MSCC for each month by which a Member’s account is delinquent, not to exceed the maximum lawful rate.

 

6.2 Delinquency. MSCC may suspend the rights and privileges of any Member whose account is more than 60 days delinquent. Until such time as a Member's membership has been terminated, a Member who is suspended for non-payment of indebtedness shall have the right to have his membership reinstated upon payment in full of the past due amounts owing to MSCC.

 

7.  Suspension and Termination of Membership

 

7.1If Member (or any Family Members or guests or invitees of Member) shall:

 

7.1.1 Refuses or neglects to comply with the provisions of This Agreement or the rules and regulations of the Club;

 

7.1.2 Shall engage in any reckless or other conduct that endangers the safety of himself or herself, or any other person, or engages in other conduct that, in the sole judgment of MSCC, is prejudicial to the interests of the Club or MSCC;

 

7.1.3 Fail to reinstate his membership within 90 days of suspension for non-payment of payments, fees or dues to MSCC; or

 

7.1.4 Violates any other obligations of the Member.

 

MSCC shall have the right, in its sole and absolute discretion, to suspend or terminate the rights and privileges of membership of Member.

 

 7.2 Resignation. Member may resign his, her or its membership in the Club at any time by giving notice in writing to the Secretary, but shall continue to be liable for any indebtedness owing to MSCC at the date of Member’s resignation.

 

 7.3 Effect of Termination or Resignation. Member’s resignation, or the termination or suspension of his, her or its rights or membership, will not relieve Member from any liability to MSCC or terminate Member’s obligations under Section 5. If Member is terminated pursuant to this Section 7, Member’s Membership Fee shall be forfeited.

 

7.4 Membership Cards. All certificates, membership cards, and similar evidence of

 

membership are the property of MSCC and shall be surrendered to MSCC upon demand.

 

8. Reservation of Rights

 

 8.1 Rules and Regulations. MSCC shall have the unqualified right to make such rules and regulations for the use of all or any part of the Club and its Facilities as it deems appropriate or advisable. All such rules and regulations shall become effective immediately upon posting a copy thereof in a conspicuous place on the Club premises and shall apply thereafter to all Members, their Family members and their guests.

 

8.2 Interpretation. The decision of MSCC shall be final on all questions involving the

 

interpretation or construction of the Rules & Regulations of the Club.

 

 8.3 Members Bound By Rules and Regulations; Changes. Member agrees that Member is bound by the terms this Agreement and the rules and regulations of the Club, and agrees to be bound by any and all changes, repeals, amendments or additions to such Rules & Regulations.

 

8.4 Right to Amend Layout of the Property. MSCC shall have the unqualified right to make such changes in the design, layout and composition of the Club and its Facilities as it deems appropriate.

 

  

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8.5 Termination of All Memberships.

 

8.5.1 MSCC shall have the right, in its sole and absolute discretion, to terminate all memberships in the Club upon not less than one year's written notice at any time after the thirty (30) year anniversary of the Member’s membership.

 

8.5.2 MSCC shall also have the right, in its sole and absolute discretion, to terminate all memberships in the Club upon the occurrence of an event rendering the Facilities unusable or beyond repair.

 

8.5.3 Upon any termination pursuant to this Section 8.5, MSCC shall refund to Members whose memberships have been in effect less than three years a pro rata portion of any Membership Fees paid by them. The amount of the refund shall equal one-third of the Membership Fee paid by Member for each year remaining before the third anniversary of the date on which membership became effective. No interest shall be payable on any such refund.

 

 8.6 Founding Members Entitled to a Refund. Except to the extent a Founding Member has exercised his/her option to purchase as pursuant to Attachment C, Founding Members have the right to a refund equal to 100% of the Membership Fee paid to MSCC by the Founding Member at their tenth (1 0th) year anniversary if they chose to terminate their membership.

 

8.7 Termination by Members. At anytime after their second (2 nd) anniversary of becoming a Member, Members shall be permitted to terminate their membership upon three (3) months notice to MSCC. Upon the effectiveness of termination, the Member’s obligations related to annual dues or other ongoing fees shall cease.

 

8.8. Regular Member Refunds. Regular Members shall have the right to terminate their memberships anytime after their second (2nd) anniversary of becoming a Member as provided in Section 8.7 above, and may be entitled to a refund of 75% of the then current Membership Fee (ÒRefund”), provided that either (i) the Club is at its maximum capacity of Members and the Member secures an appropriate and accepted replacement Member at the then current Membership Fee and the then current membership agreement to take their position as a Member and the termination of the Member does not occur prior to the second (2nd) anniversary of their membership; or (ii) if the Club is not at its maximum capacity the Member agrees to be placed on a list of Members who have terminated their memberships (ÒRefund List”) and at such time that the Club reaches its maximum capacity and accepts new replacement members (ÒReplacement Member”) off of the Club waitlist (ÒWaitlist”) then the individuals listed on the Refund List will be eligible for a Refund paid by the individual who was accepted off of the Waitlist, based on the member’s priority on the Refund List. At no time shall the Member receive a Refund as contemplated herein until the Replacement Member has been removed from the Waitlist, approved and accepted by MSCC.

 

9. Miscellaneous

 

9.1 Notices. Whenever notice is required to be given to Member, it may be given either personally or by first-class mail, email, fax or other written communication, addre ssed to Member at the address of Member appearing on the books of MSCC or at the address given by Member to MSCC for the purpose of notice. If no current address appears on MSCCÕs books and no other has been given, notice shall be deemed to have been given if it is given to that Member in person or by telephone or fax, or posted in the principal office of the Motor Sport Country Club.

 

9.2 Survival. The provisions of Sections 2, 4 and 5 shall survive the termination of this Agreement.

 

  

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9.3 Force Majeure. If during the term of this Agreement there should arise or occur any event or circumstance beyond the reasonable control of MSCC , including without limiting the generality of the foregoing, the action of government, flood, fire, strike, lock-out or other labor unrest, riot, civil unrest, terrorism, war (whether declared or undeclared), or an act of God, which prevents, restricts or delays MSCC from duly performing any of its obligations under this Agreement, then during the period that such event or circumstance, or the effect thereof, continues, performance by MSCC of such obligation will be suspended and excused to the extent that it is so prevented, restricted or delayed.

 

9.4 Assignment. A Member may not assign this Agreement or any of his, her or its rights hereunder. MSCC may assign its rights under this agreement at any time. This Agreement shall be binding upon and inure to the benefit of MemberÕs permitted heirs, executors, legal representatives and assigns and the successors and assigns of the Company.

 

9.5 No Waiver of Performance. The failure of either party to insist, in any one or more instances, on the performance of any of the terms, covenants or conditions of this Agreement, or to exercise any of its rights, shall not be construed as a waiver or relinquishment of such term, covenant, condition or right with respect to further performance.

 

9.6             Severability. The partial or complete invalidity of any one or more provisions of this

 

Agreement shall not affect the validity or continuing force and effect of any other provision.

9.7             Entire Agreement. This Agreement represents the entire agreement of the parties and

may be amended only by a writing signed by each of them.

 

9.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, other than the conflicts of law provisions thereof. Venue of any dispute shall be exclusively in Jefferson County, Colorado.

 

9.9             Headings. The headings in this Agreement are for purposes of reference only and shall not in any way limit or affect the meaning or interpretation of any of the terms of this Agreement.

 

This Agreement is dated and effective as of ______________________________________ , 20__.

 

 

	MOTOR SPORT COUNTRY CLUB	 	Member
	 	 	 
	By:	 	Signature
	 	 	 
	Name:	 	Name printed
	 	 	 
	Title:	 	 
	 	 	Address
	 	 	 
	 	 	Telephone
	 	 	 
	 	 	E-mail
	 	 	 
	 	 	Member Class:                                                                  

 

 

  

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FORM OF ANNUAL RELEASE AND WAIVER OF LIABILITY,

ASSUMPTION OF RISK AND INDEMNITY AGREEMENT

 

IN CONSIDERATION of my being permitted to participate in any way in the events at or utilize and Facilities of THE MOTOR SPORT COUNTRY CLUB (“Club”) or being permitted to enter for any purpose the premises of the Club and any use of the track, paddock , vehicle dynamics area, clubhouse and related facilities of The Club (“Facilities”), on behalf of myself, my personal representatives, heirs, and next of kin:

 

1. I acknowledge, agree and represent that I have or will immediately upon entering the Club or any of the Facilities which I enter, and further agree and warrant that, if at any time, I am in or about the Club or the FACILITIES, and I feel anything to be unsafe, I will immediately advise the officials of such and if necessary will leave the Club or FACILITIES and/or refuse to participate further in the EVENTS.

 

2. I HEREBY RELEASE, WAIVE, DISCHARGE AND COVENANT NOT TO SUE Motor Sport Country Club, (MSCC), its parent, subsidiary or affiliated entities, its and their members or employees, the promoters, participants, racing associations, sanctioning organizations or any subdivision thereof, track operators, track owners, officials, car owners, drivers, pit crews, rescue personnel, any persons in any area , promoters, sponsors, advertisers, owners and lessees of premises used to conduct the EVENT(S), premises and event inspectors, surveyors, underwriters, consultants and others who give recommendations, directions, or instructions or engage in risk evaluation or loss control activities regarding the premises or EVENT(S) and each of them, their directors, officers, agents and employees, all for the purposes herein referred to as “RELEASEES,” FROM ALL LIABILITY TO ME, my personal representatives, assigns, heirs, and next of kin FOR ANY AND ALL LOSS OR DAMAGE, AND ANY CLAIM OR DEMANDS THEREFOR ON ACCOUNT OF INJURY TO THE PERSON OR PROPERTY OR RESULTING IN MY DEATH ARISING OUT OF OR RELATED TO THE EVENT(S), WHETHER CAUSED BY THE NEGLIGENCE OF THE RELEASEES OR OTHERWISE.

 

3. I HEREBY AGREE TO INDEMNIFY AND SAVE AND HOLD HARMLESS the RELEASEES and each of them FROM ANY LOSS, LIABILITY, DAMAGE, OR COST, including all attorney’s fees, they may incur arising out of or related to the EVENT(S) WHETHER CAUSED BY THE NEGLIGENCE OF THE RELEASEES OR OTHERWISE.

 

4. I HEREBY ASSUME FULL RESPONSIBILITY FOR ANY RISK OF BODILY INJURY, DEATH OR PROPERTY DAMAGE arising out of or related to the EVENT(S) whether caused by the NEGLIGENCE OF RELEASEES or otherwise.

 

5. I HEREBY acknowledge that THE ACTIVITIES OF THE EVENT(S) ARE VERY DANGEROUS and involve the risk of serious injury and/or death and/or property damage. I also expressly acknowledge that INJURIES RECEIVED MAY BE COMPOUNDED OR INCREASED BY NEGLIGENT RESCUE OPERATIONS OR PROCEDURES OF THE RELEASEES.

 

6. I HEREBY agree that this Release and Waiver of Liability, Assumption of Risk and Indemnity Agreement extends to all acts of negligence by the RELEASEES, INCLUDING NEGLIGENT RESCUE OPERATIONS and is intended to be as broad and inclusive as is permitted by the laws of the Province or State in which the Event(s) is/are conducted and that if any portion thereof is held invalid, it is agreed that the balance shall, notwithstanding, continue in full legal force and effect.

 

  

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7. To the maximum extent permitted by applicable law, I agree that in no event will MSCC or the other RELEASEES be liable to me for any damages, claims or costs whatsoever or any consequential, indirect, incidental or special damages, or any lost profits or lost savings, under any legal theory of liability arising out of this waiver or the use of or inability to use the Facilities , even if a MSCC representative has been advised of the possibility of such loss, damages, claims or costs or if such possibility was reasonably foreseeable. The foregoing limitations and exclusions apply to the extent permitted by applicable law. MSCC 's aggregate liability under or in connection with this release shall be limited to the sum of $ 25,000 . MSCC is acting on behalf of all releasees for the purpose of disclaiming, excluding and limiting obligations, warranties and liability as provided in this Agreement, but in no other respects and for no other purpose.

 

8. I HEREBY AGREE this Agreement shall be binding upon and enforceable against me, my personal representatives, spouse, assigns, heirs, and next of kin without limitation and shall be in full force and effect for all EVENTS during the calendar year _____.

 

I HAVE READ THIS RELEASE AND WAIVER OF LIABILITY, ASSUMPTION OF RISK AND INDEMNITY AGREEMENT, FULLY UNDERSTAND ITS TERMS, UNDERSTAND THAT I HAVE GIVEN UP SUBSTANTIAL RIGHTS BY SIGNING IT, AND HAVE SIGNED IT FREELY AND VOLUNTARILY WITHOUT ANY INDUCEMENT, ASSURANCE OR GUARANTEE BEING MADE TO ME AND INTENDED MY SIGNATURE TO BE A COMPLETE AND UNCONDITIONAL RELEASE OF ALL LIABILITY TO THE GREATEST EXTENT ALLOWED BY LAW

 

AS A MEMBER YOU AGREE TO EXECUTE ANY OTHER RELEASE AND/OR WAIVER THAT MAY BE REQUIRED, THE CONTENTS OF WHICH MAY MATERIALLY ALTER FROM THIS RELEASE AND WAIVER.

 

ALL SECTIONS MUST BE COMPLETED

 

	 	 	 	 	 
	
Signature

	 	 	Date	 
	
 

Printed Name    

	 	 	
 

	 
	
 

Date of Birth                                            

	 	 	
 

	 

 

 

 

9Unassociated Document

Exhibit 10.2

	The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate Commission. 
(CBS1-10-06) (Mandatory 1-07)

 

  

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

CONTRACT TO BUY AND SELL REAL ESTATE

(ALL TYPES OF PROPERTIES)

 

	 	 	 	
Date: June 29, 2007

Purchase Price: $1,541,295.00

 

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

2.           DEFINED TERMS.

a.         Buyer.  Buyer, Claus Wagner or assigns, will take title to the real property described below as  o Joint Tenants  o Tenants In Common o Other

b.         Property.  The Property is the following legally described real estate in the County of Elbert, Colorado:

A 2017.175 acre parcel located in Sections 9, 15, 21, 22, Township 7 S, Range 58 W of the 6th PM,

Elbert County,

State of Colorado (Tax Schedule No. R115022) and

A 626.41 acre parcel located in Section 28, Township 7 S, Range 58 W of the 6th PM,

Elbert County,

State of Colorado (Tax Schedule No. R107046)

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

c.         Dates and Deadlines.  [NOTE: This table may be deleted if inapplicable.]

	
Item No.

	 	
Reference

	 	
Event

	 	
Date or Deadline

	
1

	 	
§ 4a

	 	
Alternative Earnest Money Deadline

	 	
 N/A

	
2

	 	
§ 5a

	 	
Loan Application Deadline

	 	
10 days following MEC

	
3

	 	
§ 5b

	 	
Loan Conditions Deadline

	 	
60 days following MEC

	
4

	 	
§ 5c

	 	
Buyer’s Credit Information Deadline

	 	
N/A

	
5

	 	
§ 5c

	 	
Disapproval of Buyer’s Credit Information Deadline

	 	
N/A

	
6

	 	
§ 5d

	 	
Existing Loan Documents Deadline

	 	
N/A

	
7

	 	
§ 5d

	 	
Existing Loan Documents Objection Deadline

	 	
N/A

	
8

	 	
§ 5d

	 	
Loan Transfer Approval Deadline

	 	
N/A

	
9

	 	
§ 6a(2)

	 	
Appraisal Deadline

	 	
60 days following MEC

	
10

	 	
§ 7a

	 	
Title Deadline

	 	
5 days following MEC

	
11

	 	
§ 8a

	 	
Title Objection Deadline

	 	
25 days following MEC

	
12

	 	
§ 7c

	 	
Survey Deadline

	 	
45 days following MEC

	
13

	 	
§ 8c(2)

	 	
Survey Objection Deadline

	 	
55 days following MEC

	
14

	 	
§ 7b

	 	
Document Request Deadline

	 	
10 days following MEC

	
15

	 	
§ 7d(5)

	 	
CIC Documents Objection Deadline

	 	
N/A

	
16

	 	
§ 8b

	 	
Off-Record Matters Deadline

	 	
30 days following MEC

	
17

	 	
§ 8b

	 	
Off-Record Matters Objection Deadline

	 	
45 days following MEC

	
18

	 	
§ 8f

	 	
Right of First Refusal Deadline

	 	
N/A

	
19

	 	
§ 10a

	 	
Seller’s Property Disclosure Deadline

	 	
10 days following MEC

	
20

	 	
§ 10b

	 	
Inspection Objection Deadline

	 	
55 days following MEC

	
21

	 	
§ 10c

	 	
Resolution Deadline

	 	
60 days following MEC

	
22

	 	
§ 10d

	 	
Property Insurance Objection Deadline

	 	
30 days following MEC

	
23

	 	
§ 12

	 	
Closing Date

	 	
September 28, 2007

	
24

	 	
§ 17

	 	
Possession Date

	 	
On transfer of title

	
25

	 	
§ 17

	 	
Possession Time

	 	
5:00 PM

	
26

	 	
§ 29

	 	
Acceptance Deadline Date

	 	
July 3, 2007

	
27

	 	
§ 29

	 	
Acceptance Deadline Time

	 	
5:00 PM

 

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d.         Attachments.  The following are a part of this Contract:  See Addendum attached hereto.

Note:  The following disclosure forms are attached but are not a part of this Contract: N/A

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

3.          INCLUSIONS AND EXCLUSIONS.

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

(1)   Fixtures and Personal Property.  ; and  x all fixtures and personal property located on the Property including, without limitation, all windmills and stock ponds.

(2)   Intentionally deleted.

(3)   Other Inclusions.  Such other personal property as agreed between Buyer and Seller, which personal property shall be included in a list of all personal property to be conveyed at Closing, to be prepared by Buyer and Seller on or prior to the Inspection Objection Deadline.

The Personal Property to be conveyed at Closing shall be conveyed, by Seller, free and clear of all taxes (except personal property taxes for the year of Closing), liens and encumbrances, except None.

(4)   Trade Fixtures. Intentionally deleted.

                        (5)    Parking and Storage Facilities.   Intentionally deleted.

(6)   Water Rights.  The following legally described water rights: Any and all water and water rights including, without limitation, any ditch rights, reservoir rights, storage rights, ground water rights, and well permits. Any water rights shall be conveyed by deed or other applicable legal instrument.

(7)   Growing Crops.  With respect to growing crops, Seller and Buyer agree as follows: Seller shall assign all leases to Buyer at Closing.

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

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

	
Item No.

	 	
Reference

	 	
Item

	 	
Amount

	 	
Amount

	
1

	  	 	
§ 4

	 	
Purchase Price

	 	
$

	
1,541,295.00

	 	  
	
2

	  	 	
§ 4a

	 	
Earnest Money

	 	  	 	
$

	
 15,000.00

	
3

	  	 	
§ 4d(1)

	 	
New First Loan

	 	  	 	
$

	
1,387,165.00

	
4

	  	 	
§ 4d(2)

	 	
New Second Loan

	 	  	 	  	  
	
5

	  	 	
§ 4e

	 	
Assumption Balance

	 	  	 	  	  
	
6

	  	 	
§ 4f

	 	
Seller or Private Financing

	 	  	 	  	  
	
7

	  	 	  	 	  	 	  	  	 	  	  
	
8

	  	 	  	 	  	 	  	  	 	  	  
	
9

	  	 	
§ 4b

	 	
Cash at Closing

	 	  	 	
$

	
     139,130.00

	
10

	  	 	  	 	
TOTAL

	 	
$

	
1,541,295.00

	 	
$

	
1,541,295.00

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

a.         Earnest Money.  The Earnest Money set forth in this section, in the form of a check, is part payment of the Purchase Price and shall be payable to and held by Seller.  The Earnest Money deposit shall be tendered with this Contract, shall be non-refundable unless this Agreement is terminated in writing by Buyer within 20 days following MEC, and shall be applied to the purchase price at Closing.

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

c.         Down Payment Assistance; Seller Paid Costs.  Intentionally deleted.

d.         New Loan.

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

xConventional  o FHA  o VA  o Other _________________________________________________________________________________________ .

This loan will be secured by a 1st deed of trust.

 

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The loan may be increased to add the cost of mortgage insurance, VA funding fee and other items for a total loan amount, not in excess of $1,387,165.00, which shall be amortized over a period of 30 xYearso Months at approximately $11,161.44 per month including principal and interest not to exceed  9% per annum, plus, if required by Buyer’s lender, a deposit of 1/12 of the estimated annual real estate taxes, property insurance premium, and mortgage insurance premium.  If the loan is an adjustable interest rate or graduated payment loan, the payments and interest rate initially shall not exceed the figures set forth above.

Loan discount points, if any, shall be paid to lender at Closing and shall not exceed  1% of the total loan amount.

(2)    New Second Loan.   Intentionally deleted.

e.        Assumption.  Intentionally deleted.

f.         Seller or Private Financing.  Intentionally deleted.

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

5.         FINANCING CONDITIONS AND OBLIGATIONS.

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

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

c.         Credit Information and Buyer’s New Senior Loan.  Intentionally deleted..

d.         Existing Loan Review.  Intentionally deleted.

6.         APPRAISAL PROVISIONS.

a.         Appraisal Condition.

           o       (1)   Not Applicable.  This § 6a. shall not apply.

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

           o      (3)   FHA.   Intentionally deleted.

           o      (4)   VA.   Intentionally deleted.

b.         Cost of Appraisal.  Cost of any appraisal to be obtained after the date of this Contract shall be timely paid by x BuyeroSeller.

7.         EVIDENCE OF TITLE.

a.         Evidence of Title. On or before Title Deadline (§ 2c), Seller shall cause to be furnished to Buyer, at Seller’s expense, a current commitment for owner’s title insurance policy (Title Commitment) in an amount equal to the Purchase Price, or if this box is checked, oAn Abstract of title certified to a current date.  At Seller’s expense, Seller shall cause the title insurance policy to be issued and delivered to Buyer as soon as practicable at or after Closing.  If a title insurance commitment is furnished, it xShall  o Shall Not commit to delete or insure over the standard exceptions which relate to:(1)parties in possession,

(2)         unrecorded easements,

(3)         survey matters,

(4)         any unrecorded mechanic’s liens,

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

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

 

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Any additional premium expense to obtain this additional coverage shall be paid by Buyer   Seller.    Seller shall cause the title insurance policy to be delivered to Buyer as soon as practicable after Closing. b. Copies of Exceptions.  On or before Title Deadline (§ 2c), Seller, at Seller’s expense, shall furnish to Buyer and Edward C. Sells, Esq., 2942 Evergreen Pkwy., #400, Evergreen, CO  80439, (1) a copy of any plats, declarations, covenants, conditions and restrictions burdening the Property, and (2) if a title insurance commitment is required to be furnished, and if this box is checked  x Copies of any Other Documents (or, if illegible, summaries of such documents) listed in the schedule of exceptions (Exceptions).  Even if the box is not checked, Seller shall have the obligation to furnish these documents pursuant to this subsection if requested by Buyer any time on or before Document Request Deadline (§ 2c).  This requirement shall pertain only to documents as shown of record in the office of the clerk and recorder where the Property is located.  The abstract or title insurance commitment, together with any copies or summaries of such documents furnished pursuant to this section, constitute the title documents (Title Documents).

c.         Survey.  On or before Survey Deadline (§ 2c),  Seller  x Buyer may cause Buyer (and the issuer of the Title Commitment) to receive a current  x Improvement Survey Plat  o Improvement Location Certificate o Other (the description checked is known as Survey).  The Improvement Survey Plat shall be received by Buyer on or before Survey Deadline (§2c).  Buyer may waive the requirement that the Title Documents insure over some or all of the above standard exceptions by notice received by Seller on or before Closing. All costs of any Survey desired by Buyer or required for title insurance purposes shall be paid by Buyer.

d.         Common Interest Community Documents.

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

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

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

(4)         CIC Documents to Buyer.

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

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

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

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

Should Buyer receive the CIC Documents after Title Deadline (§ 2c), Buyer shall have the right, at Buyer’s option, to terminate this Contract by written notice delivered to Seller on or before ten calendar days after Buyer’s receipt of the CIC Documents. If Buyer does not receive the CIC Documents, or if such written notice to terminate would otherwise be required to be delivered after the Closing Date, Buyer’s written notice to terminate shall be received by Seller on or before three calendar days prior to Closing Date (§ 2c). If Seller does not receive written notice from Buyer within such time, Buyer accepts the provisions of the CIC Documents, and Buyer’s right to terminate this Contract pursuant to this subsection is waived, notwithstanding the provisions of § 8e.

 

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

 

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8.         TITLE AND SURVEY REVIEW.

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

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

c.         Survey Review.

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

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

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

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

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

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

g.         Title Advisory.  The Title Documents affect the title, ownership and use of the Property and should be reviewed carefully. Additionally, other matters not reflected in the Title Documents may affect the title, ownership and use of the Property, including without limitation boundary lines and encroachments, area, zoning, unrecorded easements and claims of easements, leases and other unrecorded agreements, and various laws and governmental regulations concerning land use, development and environmental matters. The surface estate may be owned separately from the underlying mineral estate, and transfer of the surface estate does not necessarily include transfer of the mineral rights or water rights. Third parties may hold interests in oil, gas, other minerals, geothermal energy or water on or under the Property, which interests may give them rights to enter and use the Property. Such matters may be excluded from or not covered by the title insurance policy. Buyer is advised to timely consult legal counsel with respect to all such matters as there are strict time limits provided in this Contract (e.g., Title Objection Deadline [§ 2c] and Off-Record Matters Objection Deadline [§ 2c]).

 

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9.         LEAD-BASED PAINT.  Unless exempt, if the improvements on the Property include one or more residential dwellings for which a building permit was issued prior to January 1, 1978, this Contract shall be void unless a completed Lead-Based Paint Disclosure (Sales) form is signed by Seller and the required real estate licensees, which must occur prior to the parties signing this Contract. Buyer acknowledges timely receipt of a completed Lead-Based Paint Disclosure (Sales) form signed by Seller and the real estate licensees.  Seller warrants that the Property does not include a residential dwelling.

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

b.-e.   Intentionally deleted.

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

15.         CLOSING COSTS, DOCUMENTS AND SERVICES.

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

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

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

d.         Status Letter and Transfer Fees.   Intentionally deleted.

e.         Local Transfer Tax.  Intentionally deleted.

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

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

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

b.         Rents.  See Paragraph 17 below.

c.         Association Assessments.  Intentionally deleted.

d.         Other Prorations.  Intentionally deleted.

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

17.         POSSESSION.  Possession of the Property shall be delivered to Buyer on Possession Date at Possession Time (§ 2c), subject to the following leases or tenancies:

a)  Grazing lease with Triple R Partnership, expiring October 31, 2007; and

b)  A bow hunting lease on Sections 9, 15, and the northern portion of Section 22, Township 7 South, Range 58West of the 6th P.M., with Sierra Grande Outfitters expiring December 31, 2007.

c)  Buyer agrees that all lease income through the expiration date of such lease agreements shall be paid to theSeller.

If Seller, after Closing, fails to deliver possession as specified, Seller shall be subject to eviction and shall be additionally liable to Buyer for payment of $2,000.00 per day (or any part of a day) from the Possession Date and Possession Time (§ 2c) until possession is delivered.

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

18.         ASSIGNABILITY.   See addendum.

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

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

 

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

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

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

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

a.         If Buyer is in Default:

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

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

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

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

22.         MEDIATION.  Intentionally deleted.

23.         EARNEST MONEY DISPUTE.    Intentionally deleted.

24.         TERMINATION.  In the event this Contract is terminated for any reason other than a Seller default twenty (20) days following MEC, all Earnest Money received hereunder shall be retained by Seller as compensation for removing the Property from the market during the period of time that this Contract remains in effect, and the parties shall be relieved of all obligations hereunder, subject to §§ 10e.In the event the Buyer terminates the Contact within twenty (20) days following MEC, the earnest money deposit shall be immediately return to Buyer and the parties shall be relieved of all obligations hereunder, subject to §§ 10e.

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

 

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See Addendum attached hereto as Exhibit A.

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

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

28.         NOTICE, DELIVERY, AND CHOICE OF LAW.

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

b.         Electronic Delivery.  As an alternative to physical delivery, any signed document and written notice may be delivered in electronic form by the following indicated methods only:  x Facsimilex E-mailo No Electronic Delivery.  Documents with original signatures shall be provided upon request of any party.

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

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

BUYER:

Claus Wagner, or assigns

 

	By: 	 
	 	 
	Address:    	 
	 	 
	Phone No.:    	 
	Fax No.:    	 
	 	 
	Email Address:        	 

 

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

Date:                                                                   

William Blair Sylvester, Seller

 

	Address:    	 
	 	 
	Phone No.:    	 
	Fax No.:    	 
	 	 
	Email Address:        	 

                                                             

30.         COUNTER; REJECTION.  This offer is  o Counteredo Rejected.

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

      

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END OF CONTRACT

 

	  
Note: Closing Instructions and Earnest Money Receipt should be signed

on or before Title Deadline (§ 2c).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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