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Home My WebLink About20022021.tiff RESOLUTION RE: APPROVE AGREEMENT TO TAKE ASSIGNMENT FOR THREE (3) CONTRACTS TO PURCHASE PROPERTY IN DOWNTOWN GREELEY AND AUTHORIZE CHAIR TO SIGN - CLARKSON LAND, LLC WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Agreement to take Assignment for three (3) Contracts to purchase property in Downtown Greeley between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Clarkson Land, LLC, 920 54th Avenue, Suite 200, Greeley, Colorado 80634, with terms and conditions being as stated in said Agreement to take Assignment; said property being described as follows: 1) 810 10th Street, Weld County Garage, SFY Partnership 2) 1013 8th Avenue, Donald Kerbs and Mary Jane Kerbs 3) 1015 8th Avenue, BK Cornerstone Investment, LLC, Ron Kingford/Joseph I. Bodine, and WHEREAS, after review, the Board deems it advisable to approve said Agreement to take Assignment, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Agreement to take Assignment for the three (3) Contracts to purchase property in Downtown Greeley between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Clarkson Land, LLC, be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign all related documents. 2002-2021 PR0023 RE: AGREEMENT TO TAKE ASSIGNMENT FOR THREE (3) CONTRACTS TO PURCHASE PROPERTY IN DOWNTOWN GREELEY PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 29th day of July, A.D., 2002. BOARD OF COUNTY COMMISSIONERS WELY, OLORADO ATTEST:LI/ � \�' E Glens ad, Chair Weld County Clerk to Q ; e �;�: • •/ David E. ;ong, Pro-Tem Deputy Clerk to the . J. Geile APP D AS TO M: William H. Jer e ounty Attorn y Rob •. TA'asden Date of signature: 8/! 2002-2021 PR0023 Clarkson Land July 23, 2002 Mr. Don Warden Weld County Finance Director Re: Weld County Garage et al Dear Mr. Warden: You will find enclosed the original contracts on the following: 1. 810 10th Street,Weld County Garage, SFY Partnership 2. 1013 8th Avenue, Donald Kerbs and Mary Jane Kerbs 3. 1015 8s'Avenue, BK Cornerstone Investment, LLC, Ron Kingford/Joseph I. Bodine You will also find enclosed an Assignment of contract from me to Weld County. I have also delivered a copy of the contracts to Weld County Title Company with instructions for them to supply preliminary title commitment to you and our office. If the above is satisfactory, please execute and deliver your check in the amount of $3,000 payable to Clarkson Land, LLC. Thank you. S' cerely, David G. lar son lw cc: Roger Olson ACCEPTED, APPROVED AND AGREED to this a27 day of Lc 1 y , 2002. By: ad(W2_______ Its: At+-4 , IA Yve Id w C.0Yr7e l7/2942oo) Clarkson Land, LLC, 920 54th Avenue, Suite 200, Greeley, CO 80634•Telephone(970) 353-0802 • FAX(970)353-0811 ASSIGNMENT For and in consideration of the sum of $3,000, I, David G. Clarkson, hereby assign my interests in the following contracts to the county of Weld. Contract 1. 810 10' Street, Weld County Garage, SFY Partnership Contract 2. 1013 8th Avenue, Donald Kerbs and Mary Jane Kerbs Contract 3. 1015 8'h Avenue, BK Cornerstone Investment, LLC, Ron Kingford/Joseph I. Bodine I will continue to monitor the above contracts, which are attached hereto, with the title compan the closing which is set for August 8, 2002. BY: <-/ David G. Clarkson Date Weld County hereby accepts the above assignment with the following conditions: 1. All three sellers sign a letter of understanding that from the time of closing until they vacate the property, they are responsible for the maintenance of the property. 2. Written permission to remove the "Weld County Garage"sign that is historically designated must be granted by the controlling authorities. No closing will occur until the written permission is received. COUNTY OF WELD: BY: �2�� J Glenn Vaa Board of County Com issioners Date: w2y/c Z Clarkson Land July 25,2002 Mr. Don Warden Weld County Finance Director 915 10th Street Greeley, CO 80631 As a condition of the sale of my property located at 1013 8`h Avenue, the county of Weld has agreed to allow us to occupy the property for up to eighteen (18)months. We understand that the county will not be responsible for any maintenance on the building including mechanical equipment during the period of time from date of closing to the date the property is vacated. (2 � SBy: _ F j L Donald Kerbs By: *47 ry Mary ane Kerbs Clarkson Land, LLC, 920 54th Avenue, Suite 200, Greeley, CO 80634•Telephone(970) 353-0802 • FAX(970) 353-0811 Clarkson Land, LLC 920 54th Avenue, Suite 200 OR I G 1 NA L Greeley, CO 80634 Phone: 970-353-0802, Fax: 970-353-0811 The printed portions of this torm have been approved by the Colorado Real Estate Commission.(CBS 2-9-99) 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 (COMMERCIAL) Date: July 17, 2002 1. AGREEMENT. Buyer agrees to buy and the undersigned Seller agrees to sell the Property defined below on the terms and conditions set forth in this contract. 2. DEFINED TERMS. a. Buyer, Buyer, Clarkson Land LLC or Assigns will take title to the real property described below as O Joint Tenants ❑Tenants In Common ® Other severalty • b. Property. The Property is the following legally described real estate: GR 5212 $65FT L1-2 E3FT $65FT L3BLK77 EXC S32.5FT L181013 8TH AVE%SITUS:1013 8 AV GREELEY 80631 in the County of WELD ,Colorado,commonly known as No. 1013 8 AVENUE GREELEY COLORADO 80631 Street Address City State Zip together with the interests, easements,rights,benefits, improvements and attached fixtures appurtenant thereto,all interest of Seller in vacated streets and alleys adjacent thereto, except as herein excluded. c. Dates and Deadlines. Item No. Reference Event Date or Deadline 1 § 5a Loan Application Deadline 2 § 5b Loan Commitment Deadline 3 § 5c Buyer's Credit Information Deadline 4 § 5c Disapproval of Buyer's Credit Deadline 5 § 5d Existing Loan Documents Deadline 6 §5d Objection to Existing Loan Deadline 7 § 5d Approval of Loan Transfer Deadline 8 § 6a Appraisal Deadline August 01, 2002 9 § 7a Title Deadline August 01, 2002 10 § 7a Survey Deadline August 01, 2002 11 §7b Document Request Deadline 12 § 8a Title Objection Deadline August in, 2002>C4 -- 14 § 8b Ott-Record Matters Deadline 14 §8b Off-Record Matters Objection Deadline 15 § 10 Seller's Property Disclosure Deadline 16 § 10a Inspection Objection Deadline 17 § lob Resolution Deadline 18 § 11 Closing Date August 08, 2002 19 § 16 Possession Date August 08, 2002 20 § 16 Possession Time DATE OF CLOSING 21 §28 Acceptance Deadline Date July 18, 2002 22 §28 Acceptance Deadline Time 5:00 PM PREPARED BBY��JJ AGENT:.,. CBS 2.8.99, ct uy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T® of1W 001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC (' Bagel of Buyer(s) 07/17/0115:37:08 Seller(s) '/G i< In/a n/a n/a n/a d. Attachments. The following exhibits,attachments and addenda are 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" means not applicable. 3. INCLUSIONS AND EXCLUSIONS. a. The Purchase Price includes the following items(Inclusions): (1) Fixtures. If attached to the Property on the date of this contract, lighting, heating, plumbing, ventilating, and air conditioning fixtures, inside telephone wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom systems, sprinkler systems and controls, and n/a (2) Other Inclusions. If on the Property whether attached or not on the date of this contract: storm windows, storm doors,window and porch shades, awnings,blinds, screens,window coverings, curtain rods,drapery rods,storage sheds, and all keys. Check box if included: ❑ Smoke/Fire Detectors, ❑ Security Systems; and n/a (3) Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows: n/a b. Instruments of Transfer. The Inclusions are to be conveyed at Closing free and clear of all taxes,liens and encumbrances,except as provided in§ 12. Conveyance shall be by bill of sale or other applicable legal instrument(s). c. Exclusions. The following attached fixtures are excluded from this sale: n/a 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 $ 175,000 2 § 4a Earnest Money $ 1,000 3 §46 New Loan n/a 4 § 4c Assumption Balance 5 §4d Seller or Private Financing n/a 6 § 4e Cash at Closing 174,000 7 TOTAL 175,000 175,000 a. Earnest Money.The Earnest Money set forth in this Section,in the form of GOOD FUNDS ,is part payment of the Purchase Price and shall be payable to and held by WELD COUNTY TITLE , in its trust account, on behalf of both Seller and Buyer.The parties authorize delivery of the Earnest Money deposit to the Closing Company,if any,at or before Closing. b. New Loan. Buyer shall obtain a new loan set forth in this Section and as follows: ❑Conventional ❑ Other This loan will be secured by a n/a (1st, 2nd, etc.)deed of trust. The total loan amount not in excess of$ n/a shall be amortized over a period of n/a years at approximately$ n/a per month including principal and interest not to exceed n/a % per annum, plus, if required by Buyer's lender, a monthly deposit of 1/12 of the estimated annual real estate taxes and property insurance premium. If the loan is an adjustable interest rate or graduated payment loan,the monthly 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 n/a % of the total loan amount. Notwithstanding the loan's interest rate, the first n/a loan discount points shall be paid by n/a and the balance, if any, shall be paid by n/a Buyer shall timely pay Buyer's loan costs and a loan origination fee not to exceed n/a %of the loan amount. c. Assumption. Buyer agrees to assume and pay an existing loan in the approximate amount of the Assumption Balance set forth in this Section,presently payable at$ n/a per month including principal, interest presently at n/a %per annum, and also including escrow for the following as indicated: ❑Real Estate Taxes, ❑ Property Insurance Premium, and n/a • Buyer agrees to pay a loan transfer fee not to exceed$ n/a . At the time of assumption, the new interest rate shall not exceed n/a %per annum and the new monthly payment shall not exceed$ n/a principal and interest, plus escrow, if any. If the actual principal balance of the existing loan at Closing is less than the Assumption Balance, which causes the amount of cash required from Buyer at Closing to be increased by more than$ n/a , then ❑ Buyer May Terminate this contract effective upon receipt by Seller of Buyer's written notice of termination or 0 n/a Seller ❑Shall ❑Shall Not be released from liability on said loan. If applicable, compliance with the requirements for release from liability shall be evidenced by delivery at Closing of appropriate letter of commitment from lender. Cost payable for release of liability shall by paid by n/a in an amount not to exceed$ n/a d. Seller or Private Financing. Buyer agrees to execute a promissory note payable to: n/a as 0 Joint Tenants ❑ Tenants in Common 0 Other n/a ,on the note form as indicated: PREPARE. :YA • CBS 2-9-•',Cont ,• t• uy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission ReaIFA$T So • • 001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC I/Page 2 of 8 Buyer(s) i/�••• t 07/18/01 09:28:57Seller(s) ,�/. cfr, ' ,❑ (UCCC-No Default Rate) NTD 82-3-95 11 0 (Default Rate) NTD 81-11-83 ❑ Other secured by a (1st, 2nd, etc.) deed of trust encumbering the Property, using the form as indicated: ❑ Strict Due-On-Sale (TD 72-7-96) ❑ Creditworthy (TD 73-7-96) 0 Assumable - Not Due On Sale (TD 74-7-96) ❑ Other • Buyer O Shall ❑ Shall Not execute and deliver, at Closing, a Security Agreement and UCC-I Financing Statement granting the holder of the promissory note a (1st, 2nd, etc.)lien on the personal property included in this sale. The promissory note shall be amortized on the basis of 0 years 0 months,payable at$ per month including principal and interest at the rate of % per annum. Payments shall commence and shall be due on the day of each succeeding month. If not sooner paid,the balance of principal and accrued interest shall be due and payable after Closing. Payments 0 Shall ❑ Shall Not be increased by 1/12 of estimated annual real estate taxes, and 0 Shall 0 Shall Not be increased by 1/12 of estimated annual property insurance premium.The loan shall also contain the following terms: if any payment is not received within calendar days after its due date,a late charge of % of such monthly payment shall be due. Interest on lender disbursements under the deed of trust shall be %per annum. Default interest rate shall be % per annum. Buyer may prepay without a penalty except Buyer 0 Shall ® Shall Not provide a mortgagee's title insurance policy,at Buyer's expense. 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 written 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 § 4, timely pay the costs of obtaining such loan or lender consent. Buyer agrees to satisfy the reasonable requirements of lender, and shall not withdraw the loan or assumption application, nor intentionally cause any change in circumstances which would prejudice lender's approval of the loan application or funding of the loan. b. Loan Commitment. 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 obtaining a written loan commitment including, if required by lender, (1) lender verification of employment, (2) lender approval of Buyer's credit-worthiness, (3) lender verification that Buyer has sufficient funds to close, and (4) specification of any remaining requirements for funding said loan. This condition shall be deemed waived unless Seller receives from Buyer, no later than Loan Commitment Deadline (§ 2c),written notice of Buyer's inability to obtain such loan commitment.If Buyer so notifies Seller,this contract shall terminate. IF BUYER WAIVES THIS CONDITION BUT DOES NOT CLOSE,BUYER SHALL BE IN DEFAULT. c. Credit Information. If Buyer is to pay all or part of the Purchase Price by executing a promissory note in favor of Seller or if an existing loan is not to be released at Closing, this contract is conditional upon Seller's approval of Buyer's financial ability and creditworthiness, which approval shall be at Seller's sole and absolute discretion. In such case: (I) Buyer shall supply to Seller by Buyer's Credit Information Deadline (§ 2c), at Buyer's expense, information and documents concerning Buyer's financial, employment and credit condition; (2) Buyer consents that Seller may verify Buyer's financial ability and creditworthiness (including obtaining a current credit report); (3) any such information and documents received by Seller shall be held by Seller in confidence, and not released to others except to protect Seller's interest in this transaction; (4)if Seller does not provide written notice of Seller's disapproval to Buyer by Disapproval of Buyer's Credit Deadline (§ 2c), then Seller waives this condition. If Seller does provide written notice of disapproval to Buyer on or before said date,this contract shall terminate. d. Existing Loan Review. If an existing loan is not to be released at Closing, Seller shall provide copies of the loan documents (including note, deed of trust, and any modifications) to Buyer by Existing Loan Documents Deadline (§ 2c). This contract is conditional upon Buyer's review and approval of the provisions of such loan documents. If written notice of objection to such loan documents, signed by Buyer, is not received by Seller by the Objection to Existing Loan Deadline (§ 2c), Buyer accepts the terms and conditions of the documents. If the lender's approval of a transfer of the Property is required, this contract is conditional upon Buyer's obtaining such approval without change in the terms of such loan, except as set forth in § 4c. If lender's approval is not obtained by Approval of Loan Transfer Deadline (§ 2c), this contract shall terminate on such date. If Seller is to be released from liability under such existing loan and Buyer does not obtain such compliance as set forth in §4c,this contract may be terminated at Seller's option. 6. APPRAISAL PROVISIONS. a. Appraisal Condition. This subsection a. ® Shall 0 Shall Not apply. 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 . The contract shall terminate by Buyer giving Seller written notice of termination and either a copy of such appraisal or written notice from lender which confirms the Property's valuation is less than the Purchase Price, received on or before the Appraisal Deadline (§ 2c). If Seller does not receive such written notice of termination on or before the Appraisal Deadline (§ 2c),Buyer waives any right to terminate under this subsection. b. Cost of Appraisal. Cost of any appraisal to be obtained after the date of this contract shall be timely paid by ®Buyer 0 Seller. 7. EVIDENCE OF TITLE. a. Evidence of Title; Survey. 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 in an amount equal to the Purchase Price or if this box is checked, 0 An Abstract of title certified to a current date. If a title insurance commitment is furnished, it ® Shall O Shall Not commit to delete or insure over the standard exceptions which relate to: (1) parties in possession, (2) unrecorded easements, (3) survey matters, (4) any unrecorded mechanics'liens, PREPARED BY AGENT:.,. CBS 2-9-99,C t uy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFAIT®S ftwa 001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC page 3 of 8 Buyer(s) 07/17/01 15:37:08 Seller(s) 4Y-X-fie (5) gap period(effective date of commitment to date deed is recorded),and (6) unpaid taxes, assessments and unredeemed tax sales prior to the year of Closing. Any additional premium expense to obtain this additional coverage shall be paid by ❑ Buyer ® Seller. An amount not to exceed $ for the cost of any improvement location certificate or survey shall be paid by ❑ Buyer ❑ Seller. If the cost exceeds this amount, shall pay the excess on or before Closing.The improvement location certificate or survey shall be received by Buyer on or before Survey Deadline (§ 2c). Seller shall cause the title insurance policy to be delivered to Buyer as soon as practicable at or after Closing. b. Copies of Exceptions. On or before Title Deadline (§ 2c), Seller, at Seller's expense, shall furnish to Buyer,(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 O 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 the Document Request Deadline (§ 2c). This requirement shall pertain only to documents as shown of record in the office of the clerk and recorder(s). 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). 8. TITLE. a. Title Review. Buyer shall have the right to inspect the Title Documents. Written notice by Buyer of unmerchantability of title or of any other unsatisfactory title condition shown by the Title Documents shall be signed by or on behalf of Buyer and given to Seller on or before Title Objection Deadline (§ 2c), or within five (5) calendar days after receipt by Buyer of any Title Document(s) or endorsement(s) adding new Exception(s)to the title commitment together with a copy of the Title Document adding new Exception(s)to title. If Seller does not receive Buyer's notice by the date(s)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 lease(s) and survey(s) in Seller's possession pertaining to the Property and shall disclose to Buyer all easements, liens or other title matters not shown by the public records of which Seller has actual knowledge. Buyer shall have the right to inspect the Property to determine if any third party(ies) 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(s) disclosed by Seller or revealed by such inspection shalt be signed by or on behalf of Buyer and given to Seller on or before Off-Record Matters Objection Deadline (§ 2c). If Seller does not receive Buyer's notice by said date, Buyer accepts title subject to such rights, if any,of third parties of which Buyer has actual knowledge. c. 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 is received by Seller on or before Off-Record Matters Objection Deadline (§ 2c), this contract shall then 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(s)and waives the right to so terminate. d. Right to Cure. If Seller receives notice of unmerchantability of title or any other unsatisfactory title condition(s)or commitment terms as provided in § 8 a or b above, Seller shall use reasonable effort to correct said items and bear any nominal expense to correct the same prior to Closing. If such unsatisfactory title condition(s) are not corrected on or before Closing,this contract shall then terminate; provided, however,Buyer may,by written notice received by Seller,on or before Closing,waive objection to such items. e. 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.THIRD PARTIES MAY HOLD INTERESTS IN OIL, GAS, OTHER MINERALS,GEOTHERMAL ENERGY OR WATER ON OR UNDER THE PROPERTY,WHICH INTERESTS MAY GIVE THEM RIGHTS TO ENTER AND USE THE PROPERTY. Such matters may be excluded from the title insurance policy. Buyer is advised to timely consult legal counsel with respect to all such matters as there are strict time limits provided in this contract(e.g., Title Objection Deadline[§2c]and Off- Record Matters Objection Deadline [§ 2c]). 9. LEAD-BASED PAINT. Unless exempt, if the improvements on the Property include one or more residential dwelling(s) 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 licensee(s),which must occur prior to the parties signing this contract. 10. PROPERTY DISCLOSURE AND INSPECTION. On or before Seller's Property Disclosure Deadline (§ 2c), Seller agrees to provide Buyer with a written disclosure of adverse matters regarding the Property completed by Seller to the best of Seller's current actual knowledge. a. Inspection Objection Deadline. Buyer shall have the right to have inspection(s) of the physical condition of the Property and Inclusions, at Buyer's expense. If the physical condition of the Property or Inclusions is unsatisfactory in Buyer's subjective discretion, Buyer shall, on or before Inspection Objection Deadline (§ 2c): (1) notify Seller in writing that this contract is terminated, or (2) provide Seller with a written description of any unsatisfactory physical condition which Buyer requires Seller to correct (Notice to Correct). If written notice is not received by Seller on or before Inspection Objection Deadline (§ 2c), the physical condition of the Property and Inclusions shall be deemed to be satisfactory to Buyer. b. Resolution Deadline. If a Notice to Correct is received by Seller and if Buyer and Seller have not agreed in writing to a settlement PREPARED GENT:.,. CBS 2-9-99 Cont.+. t. Buy and Sell Real Estate(Commercial),8/3/99.Colorado Real Estate Commission RealFAST� �`_ 72001,Version 8.11.Licensed to Lisa Patterson,Clarkson Land,LLC Buyer(s) �� / 07/17/01 15:37:08 Page 4 of F Seller(s) A .�� cJ.. • uy 0--•'C 'thereof on or before Resolution Deadline (§ 2c), this contract shall terminate one calendar day following the Resolution Deadline (§ 2C), unless 'before such termination Seller receives Buyer's written withdrawal of the Notice to Correct. c. Damage; Liens: Indemnity. Buyer is responsible for payment for all inspections, surveys, engineering reports or for any other work performed at Buyer's request and shall pay for any damage which occurs to the Property and Inclusions as a result of such activities. Buyer shall not permit claims or liens of any kind against the Property for inspections,surveys, engineering reports and for 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 subsection, including Seller's reasonable attorney fees. The provisions of this subsection shall survive the termination of this contract. 11. CLOSING. Delivery of deed(s) 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 12. 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. distribution utility easements, c. those specifically described rights of third parties not shown by the public records of which Buyer has actual knowledge and which were accepted by Buyer in accordance with § 8b [Matters Not Shown by the Public Records],and d. inclusion of the Property within any special taxing district,and e. the benefits and burdens of any declaration and party wall agreements,if any,and f. other 13. 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. 14. CLOSING COSTS; DOCUMENTS AND SERVICES. 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.Buyer and Seller shall sign and complete all customary or reasonably required documents at or before Closing. Fees for real estate Closing services shall be paid at Closing by ® One-Half by Buyer and One-Half by Seller ❑ Buyer D Seller ❑ Other The local transfer tax of %of the Purchase Price shall be paid at Closing by 0 Buyer ❑ Seller. Any sales and use tax that may accrue because of this transaction shall be paid when due by ❑ Buyer ❑Seller. 15. 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 ❑ The Taxes for the Calendar Year Immediately Preceding Closing ®The Most Recent Mill Levy and Most Recent Assessment 0 Other ALL SPECIAL IMPROVEMENT TAXES ASSESSED ON PROPERTY WILL BE PAID AT CLOSING BY SELLER. • b. Rents. Rents based on 0 Rents Actually Received 0 Accrued. Security deposits held by Seller shall be credited to Buyer. Seller shall assign all leases to Buyer and Buyer shall assume such leases, c. Other Prorations. Water, sewer charges; and interest on continuing loan(s),if any; and TO DAY OF CLOSING d. Final Settlement. Unless otherwise agreed in writing,these prorations shall be final. 16. POSSESSION.Possession of the Property shall be delivered to Buyer on Possession Date andPossession Time (§ 2c), subject to the following lease(s)or tenancy(s): BUYER AGREES TO ALLOW SELLER TO CONTINUE TO OCCUPY PROPERTY (1013 8TH AVENUE) FOR A PERIOD OF UP TO TWELVE MONTHS FOLLOWING THE DATE OF CLOSING AT NO ADDITIONAL EXPENSE TO '/ SELLER,EXCEPT FOR THE WATER, SEWER AND UTILITIES CHARGES WHICH COINCIDE WITH icjt' THE OCCUPANCY PERIOD. IF SELLER ELECTS TO VACATE THE PROPERTY AT ANY TIME DURING THE YEAR- / OF OCCUPANCY, SELLER WILL GIVE BUYER THIRTY (30) DAYS NOTICE PRIOR TO� THAT DATE Any ct¢.,c/a4z n ay w�-4 /n / Ufl.e ye�E... �/vo 4e7 h.a O,14-- rn.o.1M -f'urnun+k. br-s�5 :T'i bw r 9'��n Sa '�rr w9c eti i o ,es' -7c :14'4 re /-s,n43.a. rflan3/ ¢Rroo ,,;/// .6.e. s,xm .. /ess. 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$ 5o per day from the Possession Date (§ 2c) until possession is delivered. 17. NOT ASSIGNABLE. This contract shall not be assignable by Buyer without Seller's prior written consent. Except as so restricted, this contract shall inure to the benefit of and be binding upon the heirs,personal representatives,successors and assigns of the parties. 18. CONDITION OF,AND 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 toitGlosing,in an amount of not more than ten percent of the total Purchase Price,Seller shall be obligated to repair the same before the Closing Date (§ 2c). In the event such damage is not repaired within said time or if the damages exceed such sum, this contract may be terminated at the option of Buyer by delivering to Seller written notice of termination. Should Buyer elect to carry out this contract despite such damage, Buyer shall be entitled to a credit, at Closing, for all the insurance proceeds resulting from such damage to the Property and Inclusions payable to Seller but not the owners'association, if any,plus the amount of any deductible provided for in such insurance policy, such credit not to exceed the total Purchase Price. b. Damage; Inclusions; Services. Should any Inclusion(s)or service(s)(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 PREPARED -' G T:.,. CBS 2-9-9',Con . t. Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission ReelFAST•'S , a !+2,001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC 07/17/01 15:37:08 n Page 5 of E Buyer(s) / Seller(s) � '� 04 for the repair or replacement of such Inclusion(s) or service(s) 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(s), service(s) or fixture(s) is not the responsibility of the owners' association, if any, less any insurance proceeds received by Buyer covering such repair or replacement. c. Walk-Through;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. 19. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this document, Buyer and Seller acknowledge that the Selling Company or the Listing Company 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. 20. TIME OF ESSENCE 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 other obligation hereunder is not performed or waived as herein provided,there shall be the following remedies: a. If Buyer is in Default. ❑ (1) Specific Performance. Seller may elect to treat this contract as canceled,in which case all payments and things of value received hereunder shall be forfeited and retained on behalf of 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. (2) Liquidated Damages. All payments and things of value received hereunder shall be forfeited by Buyer and retained on behalf of Seller and both parties shall thereafter be released from all obligations hereunder. It is agreed that such payments and things of value are LIQUIDATED DAMAGES and (except as provided in subsection c) are 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 payments and things of value received hereunder shall be returned and Buyer may recover such damages as may be proper, or Buyer may elect to treat this contract as being in full force and effect and Buyer shall have the right to specific performance or damages,or both. c. Costs and Expenses. In the event of any arbitration or litigation relating to this contract, the arbitrator or court shall award to the prevailing party all reasonable costs and expenses, including attorney fees. 21. MEDIATION. If a dispute arises relating to this contract, prior to or after Closing, and is not resolved, the parties shall first proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree before any settlement is binding. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The mediation, unless otherwise agreed, shall terminate in the event the entire dispute is not resolved 30 calendar days from the date written notice requesting mediation is sent by one party to the other(s).This Section shall not alter any date in this contract, unless otherwise agreed. 22. EARNEST MONEY DISPUTE. Notwithstanding any termination of this contract, Buyer and Seller agree that, in the event of any controversy regarding the Earnest Money and things of value held by broker or Closing Company (unless mutual written instructions are received by the holder of the Earnest Money and things of value), broker or Closing Company shall not be required to take any action but may await any proceeding, or at broker's or Closing Company's option and sole discretion, may interplead all parties and deposit any moneys or things of value into a court of competent jurisdiction and shall recover court costs and reasonable attorney fees. 23. TERMINATION. In the event this contract is terminated, all payments and things of value received hereunder shall be returned and the parties shall be relieved of all obligations hereunder,subject to§ § 10c,21 and 22. 24. ADDITIONAL PROVISIONS. (The language of these additional provisions has not been approved by the Colorado Real Estate Commission.) SELLER WILL PAY A SUM OF $5,000 REAL ESTATE FEE TO CLARKSON LAND LLC. DAVID G. CLARKSON IS A LICENSED REAL ESTATE BROKER IN THE STATE OF COLORADO. 25. ENTIRE AGREEMENT; SUBSEQUENT MODIFICATION; SURVIVAL. This contract 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 which, by its terms, is intended to be performed after termination or Closing shall survive the same. 26. FACSIMILE. Signatures ®May O May Not be evidenced by facsimile. Documents with original signatures shall be provided to the other party at Closing,or earlier upon request of any party. 27. NOTICE. Except for the notice requesting mediation described in § 21, any notice to Buyer shall be effective when received by Buyer or by Selling Company and any notice to Seller shall be effective when received by Seller or Listing Company. 28. 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 acceptance pursuant to § 27 on or before Acceptance Deadline Date 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. PREPAR A T:.,. CBS 2- 99,Co ct o Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA ,©2001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC /) page 6 of E Buyer(s) 07/17/0115:37:06 Seller(s) /S/� n.s- Clarkson Land LC o As si s 920 54th Av nue Su'te--20 G e 806 Bus.#: 9 0- •3- 2 a 7 - �1 �� BUYER / DATE By: David G. C1=r son [NOTE: If this offer is being countered or rejected, do not sign this document. Refer to § 29] SELLER ,Setetnj g.y.f � �� DATE((77ad/ ,g l7.sy� Donald Eugene Kerbs 1013 8th Avenue, Greeley, CO 80631 Bus.#:: '970-356-4883 �/ SELLER 4,4e, 1� DATE 47. /�J A'e"� MARY S KERBS 1013 8 TH AVENUE, GREELEY, CO 80631 Bus.#: 970-356-4883 29. COUNTER: REJECTION.This offer is ❑ Countered ❑ Rejected. Initials only of party(Buyer or Seller)who countered or rejected offer END OF CONTRACT \\\\\\\\\\\ Note: Closing Instructions should be signed on or before Title Deadline. • BROKER ACKNOWLEDGMENTS. The undersigned Broker(s) acknowledges receipt of the Earnest Money deposit specified in § 4 and, while not a party to the contract,agrees to cooperate upon request with any mediation conducted under§21. Selling Company Brokerage Relationship. The Selling Company and its licensees have been engaged in this transaction as ❑Buyer Agent ❑ Seller Agent/Subagent 0 Dual Agent ®Transaction-Broker. Listing Company Brokerage Relationship. The Listing Company and its licensees have been engaged in this transaction as 0 Seller Agent 0 Dual Agent ®Transaction-Broker. BROKERS' COMPENSATION DISCLOSURE. Selling Company's compensation or commission is to be paid by: El Buyer ® Seller El Listing Company ❑ Other • (To be completed by Listing Company) Listing Company's compensation or commission is to be paid by ❑Buyer ®Seller ❑ Other Selling Company: PREPARED BY AGENT:.,. CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFAST®Software,©2001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC Page 7 of 8 07/17/0115:37:08 \\\ Clarkson Land, LLC 920 54th Avenue Suite 200 Greeley, CO :0634 Phone: 970-3-3-0802, rax 9 r By: ilitY(21< /r.U� Signature ate Listing Company: . (Name of Company) By: Signature Date Listing Company's Address: Listing Company's Telephone No: Listing Company's Fax No: PREPA-• • YA - T:.,. CBS 2- •9, ••yyy -SM to Buy and Sell Real Estate(Commercial),8/3/99.Colorado Real Estate Commission RealF -T';/-��yA O2001,Version 6.1t Licensed to Lisa Patterson,Clarkson Land,LLC page 8 0 Buyer(s �IfI! r 07/17/0115:37:08 Seller(s) P, Llj yarkson Land !LC July 25, 2002 Mr. Don Warden Weld County Finance Director 915 10th Street Greeley, CO 80631 As a condition of the sale of my property located at 810 10th Street, the county of Weld has agreed to allow us to occupy the property for up to eighteen (18)months. We understand that the county will not be responsible for any maintenance on the building including mechanical equipment during the period of time from date of closing to the date the property is vacated. Partnership By. Lee Yoder Clarkson Land, LLC, 920 54th Avenue, Suite 200, Greeley, CO 80634•Telephone(970)353-0802 • FAX(970) 353-0811 Clarkson Land, LLC 920 54th Avenue, Suite 200 ORIGINAL Greeley, CO 80634 Phone: 970-353-0802, Fax: 970-353-0811 The printed portions of this form have been approved by the Colorado Real Estate Commission. (CBS 2-9-99) 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 (COMMERCIAL) Date; July 17, 2002 1. AGREEMENT. Buyer agrees to buy and the undersigned Seller agrees to sell the Property defined below on the terms and conditions set forth in this contract. 2. DEFINED TERMS. a. Buyer. Buyer, CLARKSON LAND LLC, OR ASSIGNS will take title to the real property described below as O Joint Tenants O Tenants In Common ®Other SEVERALTY b. Property. The Property is the following legally described real estate: GR 5211 L1 THRU 7 & N105' L8 & E35' L12 & ALL L13-14 & N60 L15 BLK 77 EXC $65.5' OF L1-2 & E3' OF $65.5' L3 $810 10 ST% SITUS: 810 10 ST GREELEY 80631 in the County of WELD , Colorado,commonly known as No. 810 10TH STREET GREELEY COLORADO 80631 Street Address City State Zip together with the interests, easements,rights,benefits, improvements and attached fixtures appurtenant thereto,all interest of Seller in vacated streets and alleys adjacent thereto,except as herein excluded. c. Dates and Deadlines. Item No. Reference Event Date or Deadline 1 § 5a Loan Application Deadline n/a 2 § 5b Loan Commitment Deadline n/a 3 § 5c Buyer's Credit Information Deadline August 01, 2002 4 § 5c Disapproval of Buyer's Credit Deadline August 01, 2002 5 § 5d Existing Loan Documents Deadline n/a 6 § 5d Objection to Existing Loan Deadline n/a 7 §5d Approval of Loan Transfer Deadline n/a 8 § 6a Appraisal Deadline August 01, 2002 9 § 7a Title Deadline August 01, 2002 10 § 7a Survey Deadline August 01, 2002 11 §7b Document Request Deadline n/a 12 § Sa Title Objection Deadline August 10, 2002 13 § Sb Oft-Record Matters Deadline n/a 14 § Sb Off-Record Matters Objection Deadline n/a 15 § 10 ' Seller's Property Disclosure Deadline n/a 16 § 10a . Inspection Objection Deadline n/a 17 § 10b Resolution Deadline n/a IS § 11 Closing Date August 08, 2002 19 § 16 Possession Date August 08, 2002 20 § 16 Possession Time 5:00 PM 21 § 28 Acceptance Deadline Date July 18, 2002 22 §28 Acceptance Deadline Time 5:00 PM n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a d. Attachments. The following exhibits,attachments and addenda are a part of this contract: PREPARED BY GEN CBS 2-9-99, ntra t B y and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T® ® p,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC P ge 1 Buyer(s) — 07/18/0109:03:06 Seller( n/a - e. Applicability of Terms. A check or similar mark in a box means that such provision is applicable. The abbreviation "N/A" means not applicable. 3. INCLUSIONS AND EXCLUSIONS. a. The Purchase Price includes the following items(Inclusions): (1) Fixtures. If attached to the Property on the date of this contract, lighting, heating, plumbing, ventilating, and air conditioning fixtures, inside telephone wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom systems, sprinkler systems and controls, and ttla (2) Other Inclusions. If on the Property whether attached or not on the date of this contract: storm windows, storm doors,window and porch shades,awnings,blinds,screens,window coverings,curtain rods, drapery rods,storage sheds, and all keys. Check box if included: ❑Smoke/Fire Detectors, 0 Security Systems; and n[a (3) Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows: n/a b. Instruments of Transfer. The Inclusions are to be conveyed at Closing free and clear of all taxes,liens and encumbrances,except as provided in § 12. Conveyance shall be by bill of sale or other applicable legal instrument(s). c. Exclusions. The following attached fixtures are excluded from this sale: p/a 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 $ 750,000 2 § 4a ' Earnest Money $ 1,000' 3 §4b New Loan 4 § 4c Assumption Balance n/a 5 ' §4d Seller or Private Financing n/a 6 § 4e Cash at Closing 749,000 7 TOTAL 750,000 750,000 a. Earnest Money.The Earnest Money set forth in this Section,in the form of GOOD FUNDS ,is part payment of the Purchase Price and shall be payable to and held by WELD COUNTY TITLE , in its trust account, on behalf of both Seller and Buyer.The parties authorize delivery of the Earnest Money deposit to the Closing Company,if any,at or before Closing. b. New Loan. Buyer shall obtain a new loan set forth in this Section and as follows: ❑ Conventional ® Other n/a This loan will be secured by a p/a (1st, 2nd,etc.) deed of trust. The total loan amount not in excess of$ n/a shall be amortized over a period of n/a years at approximately$ n/a per month including principal and interest not to exceed p/a % per annum, plus, if required by Buyer's lender, a monthly deposit of 1/12 of the estimated annual real estate taxes and property insurance premium. If the loan is an adjustable interest rate or graduated payment loan,the monthly 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 n/a % of the total loan amount. Notwithstanding the loan's interest rate, the first nja loan discount points shall be paid by n/a , and the balance, if any, shall be paid by p/a _ Buyer shall timely pay Buyer's loan costs and a loan origination fee not to exceed n/a %of the loan amount. c. Assumption. Buyer agrees to assume and pay an existing loan in the approximate amount of the Assumption Balance set forth in this Section,presently payable at$ n/a per month including principal, interest presently at n/a %per annum, and also including escrow for the following as indicated: O Real Estate Taxes, ❑Property Insurance Premium, and D/a • Buyer agrees to pay a loan transfer fee not to exceed$ p/a . At the time of assumption, the new interest rate shall not exceed n/a %per annum and the new monthly payment shall not exceed$ p/A principal and interest, plus escrow, if arty. If the actual principal balance of the existing loan at Closing is less than the Assumption Balance, which causes the amount of cash required from Buyer at Closing to be increased by more than$ n/a , then ❑ Buyer May Terminate this contract effective upon receipt by Seller of Buyer's written notice of termination or 0 n/a Seller O Shall Cl Shall Not be released from liability on said loan. If applicable, compliance with the requirements for release from liability shall be evidenced by delivery at Closing of appropriate letter of commitment from lender. Cost payable for release of liability shall by paid by n/a in an amount not to exceed$ n/a • d. Seller or Private Financing. Buyer agrees to execute a promissory note payable to: p/a as 0 Joint Tenants 0 Tenants in Common 0 Other n/a ,on the note form as indicated: ❑ (UCCC-No Default Rate) NTD 82-3-95 11 ❑(Default Rate) NTD 81-i 1-83 ❑ Other a secured by a n/a (1st, 2nd, etc.) deed of trust encumbering PREPARED BY ENT:.,. CBS 2-9-99, •.nt .c . : y and Sell Real Estate(Commercial),8/3199.Colorado Real Estate Commission RealFAST® oft 001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC `<< f 7 Buyer(s) 07/18/01 09:03:06 Seller(s the Property,using the form as indicated: ❑ Strict Due-On-Sale (TD 72-7-96) O Creditworthy (TD 73-7-96) O Assumable - Not Due On Sale (TD 74-7-96) ❑ Other n/a • Buyer ❑Shall O Shall Not execute and deliver, at Closing, a Security Agreement and UCC-1 Financing Statement granting the holder of the promissory note a n/a (1st, 2nd, etc.) lien on the personal property included in this sale. The promissory note shall be amortized on the basis of n/a O years O months, payable at$ n/a per month including principal and interest at the rate of n/a % per annum. Payments shall commence p/a and shall be due on the n/a day of each succeeding month. If not sooner paid,the balance of principal and accrued interest shall be due and payable n/a after Closing. Payments ❑ Shall O Shall Not be increased by 1/12 of estimated annual real estate taxes, and O Shall O Shall Not be increased by 1/12 of estimated annual property insurance premium.The loan shall also contain the following terms: if any payment is not received within n/a calendar days after its due date,a late charge of n/a % of such monthly payment shall be due. Interest on lender disbursements under the deed of trust shall be n/a %per annum. Default interest rate shall be n/a % per annum. Buyer may prepay without a penalty except n/a Buyer O Shall E Shall Not provide a mortgagee's title insurance policy,at Buyer's expense. 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 written 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 § 4, timely pay the costs of obtaining such loan or lender consent. Buyer agrees to satisfy the reasonable requirements of lender, and shall not withdraw the loan or assumption application, nor intentionally cause any change in circumstances which would prejudice lender's approval of the loan application or funding of the loan. b. Loan Commitment. 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 obtaining a written loan commitment including, if required by lender, (1) lender verification of employment, (2) lender approval of Buyer's credit-worthiness, (3) lender verification that Buyer has sufficient funds to close, and (4) specification of any remaining requirements for funding said loan. This condition shall be deemed waived unless Seller receives from Buyer, no later than Loan Commitment Deadline (§2c),written notice of Buyer's inability to obtain such loan commitment.If Buyer so notifies Seller,this contract shall terminate. IF BUYER WAIVES THIS CONDITION BUT DOES NOT CLOSE,BUYER SHALL BE IN DEFAULT. c. Credit Information. If Buyer is to pay all or part of the Purchase Price by executing a promissory note in favor of Seller or if an existing loan is not to be released at Closing, this contract is conditional upon Seller's approval of Buyer's financial ability and creditworthiness, which approval shall be at Seller's sole and absolute discretion. In such case: (I) Buyer shall supply to Seller by Buyer's Credit Information Deadline (§ 2c), at Buyer's expense, information and documents concerning Buyer's financial, employment and credit condition; (2) Buyer consents that Seller may verify Buyer's financial ability and creditworthiness (including obtaining a current credit report); (3) any such information and documents received by Seller shall be held by Seller in confidence, and not released to others except to protect Seller's interest in this transaction; (4)if Seller does not provide written notice of Seller's disapproval to Buyer by Disapproval of Buyer's Credit Deadline (§ 2c), then Seller waives this condition. If Seller does provide written notice of disapproval to Buyer on or before said date,this contract shall terminate. d. Existing Loan Review. If an existing loan is not to be released at Closing, Seller shall provide copies of the loan documents (including note, deed of trust, and any modifications) to Buyer by Existing Loan Documents Deadline (§ 2c). This contract is conditional upon Buyer's review and approval of the provisions of such loan documents. If written notice of objection to such loan documents, signed by Buyer, is not received by Seller by the Objection to Existing Loan Deadline (§ 2c), Buyer accepts the terms and conditions of the documents. If the lender's approval of a transfer of the Property is required, this contract is conditional upon Buyer's obtaining such approval without change in the terms of such loan, except as set forth in § 4c. If lender's approval is not obtained by Approval of Loan Transfer Deadline (§ 2c), this contract shall terminate on such date. If Seller is to be released from liability under such existing loan and Buyer does not obtain such compliance as set forth in §4c,this contract may be terminated at Seller's option. 6. APPRAISAL PROVISIONS. a. Appraisal Condition. This subsection a. E Shall O Shall Not apply. 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 . The contract shall terminate by Buyer giving Seller written notice of termination and either a copy of such appraisal or written notice from lender which confums the Property's valuation is less than the Purchase Price, received on or before the Appraisal Deadline (§ 2c). If Seller does not receive such written notice of termination on or before the Appraisal Deadline (§2c),Buyer waives any right to terminate under this subsection. b. Cost of Appraisal. Cost of any appraisal to be obtained after the date of this contract shall be timely paid by E Buyer O Seller. 7. EVIDENCE OF TITLE. a. Evidence of Title; Survey. 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 in an amount equal to the Purchase Price or if this box is checked, ❑An Abstract of title certified to a current date. If a title insurance commitment is furnished, it E Shall ❑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 mechanics'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. PREPARED B AGE T: ; CBS 2-9-99, r on t .u..' =u and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission ReaIFAST®... . .. •r 1,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC ag f Buyer(s) ! 07/18/01 09:03:06 Seller ) Any additional premium expense to obtain this additional coverage shall be paid by O Buyer ® Seller. An amount not to exceed $ n/a for the cost of any improvement location certificate or survey shall be paid by ❑Buyer O Seller. If the cost exceeds this amount, n/a shall pay the excess on or before Closing. The improvement location certificate or survey shall be received by Buyer on or before Survey Deadline (§ 2c). Seller shall cause the title insurance policy to be delivered to Buyer as soon as practicable at or after Closing. b. Copies of Exceptions.On or before Title Deadline (§ 2c), Seller, at Seller's expense, shall furnish to Buyer, (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 0 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 the Document Request Deadline (§ 2c). This requirement shall pertain only to documents as shown of record in the office of the clerk and recorder(s). 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). 8. TITLE. a. Title Review. Buyer shall have the right to inspect the Title Documents. Written notice by Buyer of unmerchantability of title or of any other unsatisfactory title condition shown by the Title Documents shall be signed by or on behalf of Buyer and given to Seller on or before Title Objection Deadline (§ 2c), or within five (5) calendar days after receipt by Buyer of any Title Document(s) or endorsement(s) adding new Exception(s)to the title commitment together with a copy of the Title Document adding new Exception(s)to title. If Seller does not receive Buyer's notice by the date(s)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 lease(s) and survey(s) in Seller's possession pertaining to the Property and shall disclose to Buyer all easements, liens or other title matters not shown by the public records of which Seller has actual knowledge. Buyer shall have the right to inspect the Property to determine if any third party(ies) 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(s) disclosed by Seller or revealed by such inspection shall be signed by or on behalf of Buyer and given to Seller on or before Off-Record Matters Objection Deadline (§ 2c). If Seller does not receive Buyer's notice by said date,Buyer accepts title subject to such rights, if any,of third parties of which Buyer has actual knowledge. c. 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 is received by Seller on or before Off-Record Matters Objection Deadline (§ 2c), this contract shall then 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(s) and waives the right to so terminate. d. Right to Cure. If Seller receives notice of unmerchantability of title or any other unsatisfactory title condition(s)or commitment terms as provided in § 8 a or b above, Seller shall use reasonable effort to correct said items and bear any nominal expense to correct the same prior to Closing. If such unsatisfactory title condition(s) are not corrected on or before Closing,this contract shall then terminate; provided, however, Buyer may,by written notice received by Seller,on or before Closing,waive objection to such items. e. 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.THIRD PARTIES MAY HOLD INTERESTS IN OIL, GAS, OTHER MINERALS,GEOTHERMAL ENERGY OR WATER ON OR UNDER THE PROPERTY,WHICH INTERESTS MAY GIVE THEM RIGHTS TO ENTER AND USE THE PROPERTY. Such matters may be excluded from the title insurance policy. Buyer is advised to timely consult legal counsel with respect to all such matters as there are strict time limits provided in this contract(e.g., Title Objection Deadline[§2c]and Off-Record Matters Objection Deadline [§ 2c]). 9. LEAD-BASED PAINT. Unless exempt, if the improvements on the Property include one or more residential dwelling(s) 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 licensee(s),which must occur prior to the parties signing this contract. 10. PROPERTY DISCLOSURE AND INSPECTION. On or before Seller's Property Disclosure Deadline (§ 2c), Seller agrees to provide Buyer with a written disclosure of adverse matters regarding the Property completed by Seller to the best of Seller's current actual knowledge. a. Inspection Objection Deadline. Buyer shall have the right to have inspection(s) of the physical condition of the Property and Inclusions, at Buyer's expense. If the physical condition of the Property or Inclusions is unsatisfactory in Buyer's subjective discretion, Buyer shall, on or before Inspection Objection Deadline (§ 2c): (1) notify Seller in writing that this contract is terminated, or (2) provide Seller with a written description of any unsatisfactory physical condition which Buyer requires Seller to correct (Notice to Correct). If written notice is not received by Seller on or before Inspection Objection Deadline (§ 2c), the physical condition of the Property and Inclusions shall be deemed to be satisfactory to Buyer. b. Resolution Deadline. If a Notice to Correct is received by Seller and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Resolution Deadline (§ 2c), this contract shall terminate one calendar day following the Resolution Deadline (§ 2C), unless before such termination Seller receives Buyer's written withdrawal of the Notice to Correct. PREPARED B AGE •. CBS 2-9-99, e,•nt y an Sell Real Estate(Commerdap,6/3/99.Colorado Real Estate Commission ReaIFAST® 001,%rsion 8.11.Licensed to Lisa Patterson,Clarkson Land,LLC .'� 07/18/01 09:03:06 Pa a it Beyer(s) Seller(s) c. Damage; Liens; Indemnity. Buyer is responsible for payment for all inspections, surveys, engineering reports or for any other work performed at Buyer's request and shall pay for any damage which occurs to the Property and Inclusions as a result of such activities. Buyer shall not permit claims or liens of any kind against the Property for inspections,surveys,engineering reports and for 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 subsection, including Seller's reasonable attorney fees. The provisions of this subsection shall survive the termination of this contract. 11. CLOSING. Delivery of deed(s) 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 12. 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 § Sa[Title Review], b. distribution utility easements, c. those specifically described rights of third parties not shown by the public records of which Buyer has actual knowledge and which were accepted by Buyer in accordance with § 8b [Matters Not Shown by the Public Records], and d. inclusion of the Property within any special taxing district,and e. the benefits and burdens of any declaration and party wall agreements, if any, and f. other n/a 13. 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. 14. CLOSING COSTS; DOCUMENTS AND SERVICES. 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. Buyer and Seller shall sign and complete all customary or reasonably required documents at or before Closing. Fees for real estate Closing services shall be paid at Closing by ® One-Half by Buyer and One-Half by Seller ❑ Buyer ❑Seller ❑ Other n/a • The local transfer tax of pia %of the Purchase Price shall be paid at Closing by ❑Buyer 0 Seller. Any sales and use tax that may accrue because of this transaction shall be paid when due by O Buyer ❑Seller. 15. 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 ❑ The Taxes for the Calendar Year Immediately Preceding Closing ® The Most Recent Mill Levy and Most Recent Assessment 0 Other ALL SPECIAL IMPROVEMENT TAXES ASSESSED ON PROPERTY WILL BE PAID AT CLOSING BY SELLER. • b. Rents. Rents based on ❑ Rents Actually Received 0 Accrued. Security deposits held by Seller shall be credited to Buyer. Seller shall assign all leases to Buyer and Buyer shall assume such leases, n/a c. Other Prorations. Water, sewer charges; and interest on continuing loan(s), if any; and n/a d. Final Settlement. Unless otherwise agreed in writing,these prorations shall be final. 16. POSSESSION.Possession of the Property shall be delivered to Buyer on Possession Date andPossession Time (§ 2c), subject to the following lease(s)or tenancy(s): SELLER MAY OCCUPY 810 10 STREET FOR A PERIOD OF UP TO (18) EIGHTEEN MONTHS FROM DATE OF CLOSING AT NO ADDITIONAL EXPENSE EXCEPT FOR ALL UTILITIES, WATER AND SEWER. PAYMENT OF ALL UTILITIES WATER AND SEWER WILL BE THE RESPONSIBILITY OF SELLER DURING THE ENTIRE OCCUPANCY PERIOD. SELLER WILL GIVE THE BUYER 30 DAYS NOTICE BEFORE VACATING PROPERTY.SELLER AGREES TO MAINTAIN FULL INSURANCE COVERAGE INCLUDING LIABILITY ON PROPERTY WHILE OCCUPYING PROPERTY AND INCLUDE WELD COUNTY AS ADDITIONAL INSURED. 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$ 150 per day from the Possession Date (§ 2c) until possession is delivered. 17. NOT ASSIGNABLE. This contract shall not be assignable by Buyer without Seller's prior written consent. Except as so restricted, this contract shall inure to the benefit of and be binding upon the heirs,personal representatives, successors and assigns of the parties. 18. CONDITION OF, AND DAMAGE TO PROPERTY AND INCLUSIONS. Except as otherwise provided in this contract, the Property, Inclusions or both shall be delivered in the condition existing as of the date of this contract,ordinary wear and tear excepted. a. Casualty; Insurance. In the event the Property or Inclusions shall be damaged by fire or other casualty prior to Closing,in an amount of not more than ten percent of the total Purchase Price,Seller shall be obligated to repair the same before the Closing Date (§ 2c). In the event such damage is not repaired within said time or if the damages exceed such sum, this contract may be terminated at the option of Buyer by delivering to Seller written notice of termination. Should Buyer elect to carry out this contract despite such damage,Buyer shall be entitled to a credit, at Closing. for all the insurance proceeds resulting from such damage to the Property and Inclusions payable to Seller but not the owners'association,if any,plus the amount of any deductible provided for in such insurance policy, such credit not to exceed the total Purchase Price. b. Damage; Inclusions; Services. Should any Inclusion(s)or service(s)(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(s) or service(s) 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(s), service(s) or fixture(s) is not the responsibility of the owners' association, if any, PREPARED =Y AG= T:. CBS 2-9.9• C• u and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFASTE ,y 01,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC Buyer(s) /' 07/18/0109:03:06 Seller(sll • less any insurance proceeds received by Buyer covering such repair or replacement. c. Walk-Through;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. 19. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this document, Buyer and Seller acknowledge that the Selling Company or the Listing Company 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. 20. TIME OF ESSENCE 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 other obligation hereunder is not performed or waived as herein provided,there shall be the following remedies: a. If Buyer is in Default. ❑ (1) Specific Performance. Seller may elect to treat this contract as canceled,in which case all payments and things of value received hereunder shall be forfeited and retained on behalf of 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. ® (2) Liquidated Damages. All payments and things of value received hereunder shall be forfeited by Buyer and retained on behalf of Seller and both parties shall thereafter be released from all obligations hereunder. It is agreed that such payments and things of value are LIQUIDATED DAMAGES and (except as provided in subsection c) are 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 payments and things of value received hereunder shall be returned and Buyer may recover such damages as may be proper, or Buyer may elect to treat this contract as being in full force and effect and Buyer shall have the right to specific performance or damages,or both. c. Costs and Expenses. In the event of any arbitration or litigation relating to this contract, the arbitrator or court shall award to the prevailing party all reasonable costs and expenses, including attorney fees. 21. MEDIATION. If a dispute arises relating to this contract, prior to or after Closing, and is not resolved, the parties shall first proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree before any settlement is binding. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The mediation, unless otherwise agreed, shall terminate in the event the entire dispute is not resolved 30 calendar days from the date written notice requesting mediation is sent by one party to the other(s).This Section shall not alter arty date in this contract,unless otherwise agreed. 22. EARNEST MONEY DISPUTE. Notwithstanding any termination of this contract, Buyer and Seller agree that, in the event of any controversy regarding the Earnest Money and things of value held by broker or Closing Company (unless mutual written instructions are received by the holder of the Earnest Money and things of value), broker or Closing Company shall not be required to take any action but may await any proceeding, or at broker's or Closing Company's option and sole discretion, may interplead all parties and deposit any moneys or things of value into a court of competent jurisdiction and shall recover court costs and reasonable attorney fees. 23. TERMINATION. In the event this contract is terminated, all payments and things of value received hereunder shall be returned and the parties shall be relieved of all obligations hereunder,subject to§ § 10c,21 and 22. 24. ADDITIONAL PROVISIONS. (The language of these additional provisions has not been approved by the Colorado Real Estate Commission.) DAVID G. CLARKSON IS A LICENSED REAL ESTATE BROKER IN TEE STATE OF COLORADO, 25. ENTIRE AGREEMENT; SUBSEQUENT MODIFICATION; SURVIVAL. This contract 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 which,by its terms, is intended to be performed after termination or Closing shall survive the same. 26. FACSIMILE. Signatures ® May O May Not be evidenced by facsimile. Documents with original signatures shall be provided to the other party at Closing,or earlier upon request of any party. 27. NOTICE. Except for the notice requesting mediation described in § 21, any notice to Buyer shall be effective when received by Buyer or by Selling Company and any notice to Seller shall be effective when received by Seller or Listing Company. 28. 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 acceptance pursuant to § 27 on or before Acceptance Deadline Date 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. CLAAKSON ‘) LLC, OrA NS 920 54 HAVEN GR Y BUYER Bus. • 7 - a 0 5 L DATE 7'/ O By: DAVID G. CLARKS [NOTE: if this offer is being countered or rejected, do not sign this document. Refer to § 29] PREPARED BY AGENT:.,. CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercal),6/3/99.Colorado Real Estate Commission RealFAST®Software,O2001,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLC k4f 7 07/18/01 09:03:06 Seller FSY PARTNERSHIP 810 10TH STREET, GREELEY, Co_ 80631 Bus.#: 970-352-1313 /v �] SELLER /[;lC�_-((. DATE / //X' 6 By: LEE YODER 29. COUNTER: REJECTION.This offer is D Countered 0 Rejected. Initials only of party(Buyer or Seller)who countered or rejected offer END OF CONTRACT Note:Closing Instructions should be signed on or before Title Deadline. BROKER ACKNOWLEDGMENTS. The undersigned Broker(s) acknowledges receipt of the Earnest Money deposit specified in § 4 and, while not a party to the contract,agrees to cooperate upon request with any mediation conducted under§ 21. Selling Company Brokerage Relationship. The Selling Company and its licensees have been engaged in this transaction as O Buyer Agent ❑ Seller Agent/Subagent ❑Dual Agent ®Transaction-Broker. Listing Company Brokerage Relationship. The Listing Company and its licensees have been engaged in this transaction as ❑Seller Agent O Dual Agent ®Transaction-Broker. BROKERS' COMPENSATION DISCLOSURE. Selling Company's compensation or commission is to be paid by: ❑ Buyer ❑Seller ❑ Listing Company 0 Other D/a • (To be completed by Listing Company) Listing Company's compensation or commission is to be paid by 0 Buyer O Seller 0 Other n/a Selling Company: Clarkson Land, LLC 920 54th Aven Suite 200 Greeley, • 80634 Phone: 9 0-353-080 , 7 - -0: . 1 By: ��// /a��•�" c — Signature Date Listing Company: CLARKSON LAND LLC (Name of Company) By: Signature DAVID G. CLARKSON Date Listing Company's Address: 920 54TH AVENUE Listing Company's Telephone No: 970-353-0802 Listing Company's Fax No: 970-353-0811 PREPARED =Y AG Y► CBS 2-9-99 • t and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T® ,a � .1,Version 6.11.Licensed to Lisa Patterson,Clarkson Land,LLCc. \ ( 07/18/0109:03:06 Page' of T ', Buyer(s) �� CCarfzson Land ttA: July 25, 2002 Mr. Don Warden Weld County Finance Director 915 10`h Street Greeley, CO 80631 As a condition of the sale of my property located at 1015 8th Avenue, the county of Weld has agreed to allow us to occupy the property for up to eighteen (18) months. We understand that the county will not be responsible for any maintenance on the building including mechanical equipment during the period of time from date of closing to the date the property is vacated. BK tone Investment LLC By: _ Ron Kingford ose.,� Clarkson Land, LLC, 920 54th Avenue, Suite 200, Greeley, CO 80634•Telephone(970) 353-0802 • FAX(970)353-0811 Clarkson Land, LLC 920 54th Avenue ORIGINALSuite 200 . Greeley, CO 80634 Phone: 970-353-0802, Fax: 970-353-0811 The printed portions of this form have been approved by the Colorado Real Estate Commission.(CBS 2-9-99) THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND TILE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Date: July 17, 2002 1. AGREEMENT. Buyer agrees to buy and the undersigned Seller agrees to sell the Property defined below on the terms and conditions set forth in this contract. - 2. DEFINED TERMS. a. Buyer. Buyer, CT•LOESON LAND LLC OR ASSIGNS will take title to the real property described below as O Joint Tenants ❑Tenants In Common ®Other SEVERALTY b. Property. The Property is the following legally described real estate: GR 5212A S32.5' Ll' ELK77 %1015 8 AVE% SITUS: 1015 8 AV GREELEY 80631 in the County of WELD ,Colorado,commonly known as No. 1015 8TH AVENUE GREELEY CO 80631 Street Address City State Zip together with the interests, easements,rights, benefits,improvements and attached fixtures appurtenant thereto, all interest of Seller in vacated streets and alleys adjacent thereto, except as herein excluded. c. Dates and Deadlines. Item No. Reference Event Date or Deadline 1 § 5a Loan Application Deadline n/a 2 § 5b Loan Commitment Deadline n/a 3 § 5c Buyer's Credit Information Deadline n/a 4 § 5c Disapproval of Buyer's Credit Deadline n/a 5 §5d Existing Loan Documents Deadline n/a 6 §5d Objection to Existing Loan Deadline n/a 7 §5d Approval of Loan Transfer Deadline n/a 8 §6a Appraisal Deadline n/a 9 §7a Title Deadline August 01, 2002 10 §7a Survey Deadline August 01, 2002 11 § 7b Document Request Deadline n/a 12 § 8a Title Objection Deadline August 03, 2002 13 § 8b Off-Record Matters Deadline n/a 14 § 8b Off-Record Matters Objection Deadline n/a 15 § 10 Seller's Property Disclosure Deadline n/a 16 § 10a Inspection Objection Deadline n/a 17 § lob Resolution Deadline n/a 18 § 11 Closing Date August 08, 2002 19 § 16 Possession Date August 08, 2002 20 § 16 Possession Time Date of closing 21 §28 Acceptance Deadline Date July 23, 2002 22 § 28 Acceptance Deadline Time 5:00 PM n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a d. Attachments. The following exhibits,attachments and addenda are a part of this contract: PREPARED AGENT:SANDRA MARKLEY, ' CBS 2-9-99 Co tra Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T to e, 2002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC 07/22/02 21:49:39 �,�, ppppa9 ��(�1%r�� Buyer(s) Seller(s# .V n/a e. Applicability of Terms. A check or similar mark in a box means that such provision is applicable. The abbreviation "N/A" means not applicable. 3. INCLUSIONS AND EXCLUSIONS. a. The Purchase Price includes the following items(Inclusions): (1) Fixtures. If attached to the Property on the date of this contract, lighting, heating, plumbing, ventilating, and air conditioning fixtures, inside telephone wiring and connecting blocks/jacks,plants, mirrors, floor coverings,intercom systems, sprinkler systems and controls, and n/a (2) Other Inclusions. If on the Property whether attached or not on the date of this contract: storm windows, storm doors, window and porch shades, awnings,blinds,screens,window coverings,curtain rods, drapery rods,storage sheds,and all keys. Check box if included: ❑ Smoke/Fire Detectors, ❑ Security Systems; and n/a (3) Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows: n/a b. Instruments of Transfer. The Inclusions are to be conveyed at Closing free and clear of all taxes, liens and encumbrances,except as provided in§ 12. Conveyance shall be by bill of sale or other applicable legal instrument(s). c. Exclusions. The following attached fixtures are excluded from this sale: n/a 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 $ 130,000 2 §4a Earnest Money $ 1,000 3 §4b New Loan n/a 4 §4c Assumption Balance n/a 5 §4d Seller or Private Financing n/a 6 §4e Cash at Closing 129,000 7 TOTAL 5 130,000- $ 130,000 a. Earnest Money.The Eamest Money set forth in this Section,in the form of GOOD FUNDS ,is part payment of the Purchase Price and shall be payable to and held by WELD COUNTY TITLE , in its trust account, on behalf of both Seller and Buyer. The parties authorize delivery of the Earnest Money deposit to the Closing Company,if any,at or before Closing. b. New Loan. Buyer shall obtain a new loan set forth in this Section and as follows: ❑Conventional ®Other n/a This loan will be secured by a n/a (1st,2nd,etc.)deed of trust. The total loan amount not in excess of$ n/a shall be amortized over a period of n/a years at approximately$ n/a per month including principal and interest not to exceed n/a % per annum, plus, if required by Buyer's lender, a monthly deposit of 1/12 of the estimated annual real estate taxes and property insurance premium. If the loan is an adjustable interest rate or graduated payment loan,the monthly 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 n/a % of the total loan amount. Notwithstanding the loan's interest rate, the first n/a loan discount points shall be paid by n/a , and the balance, if any, shall be paid by n/a Buyer shall timely pay Buyer's loan costs and a loan origination fee not to exceed n/a %of the loan amount. c. Assumption. Buyer agrees to assume and pay an existing loan in the approximate amount of the Assumption Balance set forth in this Section,presently payable at$ n/a per month including principal, interest presently at n/a %per annum, and also including escrow for the following as indicated: C Real Estate Taxes, 0 Property Insurance Premium, and n/a Buyer agrees to pay a loan transfer fee not to exceed$ n/a . At the time of assumption, the new interest rate shall not exceed n/a %per annum and the new monthly payment shall not exceed$ n/a principal and interest, plus escrow, if any. If the actual principal balance of the existing loan at Closing is less than the Assumption Balance, which causes the amount of cash required from Buyer at Closing to be increased by more than$ n/a , then 0 Buyer May Terminate this contract effective upon receipt by Seller of Buyer's written notice of termination or ❑n/a Seller 0 Shall 0 Shall Not be released from liability on said loan. If applicable, compliance with the requirements for release from liability shall be evidenced by delivery at Closing of appropriate letter of commitment from lender. Cost payable for release of liability shall by paid by n/a in an amount not to exceed$ n/a d. Seller or Private Financing. Buyer agrees to execute a promissory note payable to: n/a as 0 Joint Tenants 0 Tenants in Common 0 Other n/a ,on the note form as indicated: ❑ (UCCC-No Default Rate) NTD 82-3-95 11 ❑ (Default Rate) NTD 81-11-83 ❑ Other n/a secured by a n/a (1st, 2nd, etc.) deed of trust encumbering PREPARED : AGE T:SANDRA MARKLEY, CBS 2-9-9• C. tr.' t•Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T: So ®2002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC I Buyer(s) ty 07/22/02 21:49:39 Selier(s) ge 8 the Property, using the form as indicated: ❑ Strict Due-On-Sale (TD 72-7-96) O Creditworthy (TD 73-7-96) O Assumable - Not Due On Sale (TD 74-7-96) O Other n/a • Buyer O Shall O Shall Not execute and deliver, at Closing, a Security Agreement and UCC-1 Financing Statement granting the holder of the promissory note a n/a (1st, 2nd, etc.) lien on the personal property included in this sale. The promissory note shall be amortized on the basis of n/a O years ❑months,payable at$ n/a per month including principal and interest at the rate of n/a % per annum. Payments shall commence n/a and shall be due on the n/a day of each succeeding month. If not sooner paid,the balance of principal and accrued interest shall be due and payable n/a after Closing. Payments O Shall O Shall Not be increased by 1/12 of estimated annual real estate taxes, and O Shall O Shall Not be increased by 1/12 of estimated annual property insurance premium.The loan shall also contain the following terms: if any payment is not received within n/a calendar days after its due date, a late charge of n/a % of such monthly payment shall be due. Interest on lender disbursements under the deed of trust shall be n/a %per annum. Default interest rate shall be n/a % per annum. Buyer may prepay without a penalty except n/a Buyer O Shall O Shall Not provide a mortgagee's title insurance policy,at Buyer's expense. 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 written 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 § 4, timely pay the costs of obtaining such loan or lender consent. Buyer agrees to satisfy the reasonable requirements of lender, and shall not withdraw the loan or assumption application, nor intentionally cause any change in circumstances which would prejudice lender's approval of the loan application or funding of the loan. b. Loan Commitment. 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 obtaining a written loan commitment including, if required by lender, (1) lender verification of employment, (2) lender approval of Buyer's credit-worthiness, (3) lender verification that Buyer has sufficient funds to close, and (4) specification of any remaining requirements for funding said loan. This condition shall be deemed waived unless Seller receives from Buyer, no later than Loan Commitment Deadline (§2c),written notice of Buyer's inability to obtain such loan commitment. If Buyer so notifies Seller,this contract shall terminate. IF BUYER WAIVES THIS CONDITION BUT DOES NOT CLOSE,BUYER SHALL BE IN DEFAULT. c. Credit Information. If Buyer is to pay all or part of the Purchase Price by executing a promissory note in favor of Seller or if an existing loan is not to be released at Closing, this contract is conditional upon Seller's approval of Buyer's financial ability and creditworthiness, which approval shall be at Seller's sole and absolute discretion. In such case: (I) Buyer shall supply to Seller by Buyer's Credit Information Deadline (§ 2c), at Buyer's expense, information and documents concerning Buyer's financial, employment and credit condition; (2)Buyer consents that Seller may verify Buyer's financial ability and creditworthiness (including obtaining a current credit report); (3) any such information and documents received by Seller shall be held by Seller in confidence, and not released to others except to protect Seller's interest in this transaction; (4)if Seller does not provide written notice of Seller's disapproval to Buyer by Disapproval of Buyer's Credit Deadline (§ 2c), then Seller waives this condition. If Seller does provide written notice of disapproval to Buyer on or before said date,this contract shall terminate. d. Existing Loan Review. If an existing loan is not to be released at Closing, Seller shall provide copies of the loan documents (including note, deed of trust, and any modifications) to Buyer by Existing Loan Documents Deadline (§ 2c). This contract is conditional upon Buyer's review and approval of the provisions of such loan documents. If written notice of objection to such loan documents,signed by Buyer, is not received by Seller by the Objection to Existing Loan Deadline (§ 2c), Buyer accepts the terms and conditions of the documents. If the lender's approval of a transfer of the Property is required, this contract is conditional upon Buyer's obtaining such approval without change in the terms of such loan, except as set forth in § 4c. If lender's approval is not obtained by Approval of Loan Transfer Deadline (§ 2c), this contract shall terminate on such date. If Seller is to be released from liability under such existing loan and Buyer does not obtain such compliance as set forth in §4c,this contract may be terminated at Seller's option. 6. APPRAISAL PROVISIONS. a. Appraisal Condition. This subsection a. O Shall ®Shall Not apply. 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 . The contract shall terminate by Buyer giving Seller written notice of termination and either a copy of such appraisal or written notice from lender which confirms the Property's valuation is less than the Purchase Price, received on or before the Appraisal Deadline (§ 2c). If Seller does not receive such written notice of termination on or before the Appraisal Deadline (§ 2c), Buyer waives any right to terminate under this subsection. b. Cost of Appraisal. Cost of any appraisal to be obtained after the date of this contract shall be timely paid by ®Buyer O Seller. 7. EVIDENCE OF TITLE. a. Evidence of Title; Survey. 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 in an amount equal to the Purchase Price or if this box is checked, ❑An Abstract of title certified to a current date. If a title insurance commitment is furnished, it O Shall O Shall Not commit to delete or insure over the standard exceptions which relate to: (1) parties in possession, (2) unrecorded easements, (3) survey matters, (4) any unrecorded mechanics'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. PREPARED GENT:SANDRA MARKLEY, CBS 2-9-99 Cont Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T So e, 2002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC nf8 Buyer(s) 07/22/02 21:49:39 Sellers) Any additional premium expense to obtain this additional coverage shall be paid by 0 Buyer 0 Seller. An amount not to exceed $ n/a for the cost of any improvement location certificate or survey shall be paid by 0 Buyer 0 Seller. If the cost exceeds this amount, n/a shall pay the excess on or before Closing.The improvement location certificate or survey shall be received by Buyer on or before Survey Deadline (§ 2c). Seller shall cause the title insurance policy to be delivered to Buyer as soon as practicable at or after Closing. b. Copies of Exceptions. On or before Title Deadline (§ 2c), Seller, at Seller's expense, shall furnish to Buyer, (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 ❑ 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 the Document Request Deadline (§ 2c). This requirement shall pertain only to documents as shown of record in the office of the clerk and recorder(s). 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). 8. TITLE. a. Title Review. Buyer shall have the right to inspect the Title Documents. Written notice by Buyer of unmerchantability of title or of any other unsatisfactory title condition shown by the Title Documents shall be signed by or on behalf of Buyer and given to Seller on or before Title Objection Deadline (§ 2c), or within five (5) calendar days after receipt by Buyer of any Title Document(s) or endorsement(s) adding new Exception(s)to the title commitment together with a copy of the Title Document adding new Exception(s)to title. If Seller does not receive Buyer's notice by the date(s)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 lease(s) and survey(s) in Seller's possession pertaining to the Property and shall disclose to Buyer all easements, liens or other title matters not shown by the public records of which Seller has actual knowledge. Buyer shall have the right to inspect the Property to determine if any third party(ies) 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(s) disclosed by Seller or revealed by such inspection shall be signed by or on behalf of Buyer and given to Seller on or before Off-Record Matters Objection Deadline (§ 2c).If Seller does not receive Buyer's notice by said date,Buyer accepts title subject to such rights, if any,of third parties of which Buyer has actual knowledge. c. 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 is received by Seller on or before Off-Record Matters Objection Deadline (§ 2c), this contract shall then 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(s) and waives the right to so terminate. d. Right to Cure. If Seller receives notice of unmerchantability of title or any other unsatisfactory title condition(s)or commitment terms as provided in § 8 a or b above, Seller shall use reasonable effort to correct said items and bear any nominal expense to correct the same prior to Closing. If such unsatisfactory title condition(s) are not corrected on or before Closing, this contract shall then terminate;provided, however, Buyer may,by written notice received by Seller,on or before Closing,waive objection to such items. e. 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.THIRD PARTIES MAY HOLD INTERESTS IN OIL,GAS, OTHER MINERALS,GEOTHERMAL ENERGY OR WATER ON OR UNDER THE PROPERTY,WHICH INTERESTS MAY GIVE THEM RIGHTS TO ENTER AND USE THE PROPERTY. Such matters may be excluded from the title insurance policy. Buyer is advised to timely consult legal counsel with respect to all such matters as there are strict time limits provided in this contract(e.g., Title Objection Deadline[§2c]and Off-Record Matters Objection Deadline [§ 2c]). 9. LEAD-BASED PAINT. Unless exempt, if the improvements on the Property include one or more residential dwelling(s) 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 licensee(s),which must occur prior to the parties signing this contract. 10. PROPERTY DISCLOSURE AND INSPECTION. On or before Seller's Property Disclosure Deadline (§ 2c),Seller agrees to provide Buyer with a written disclosure of adverse matters regarding the Property completed by Seller to the best of Seller's current actual knowledge. a. Inspection Objection Deadline. Buyer shall have the right to have inspection(s) of the physical condition of the Property and Inclusions, at Buyer's expense. If the physical condition of the Property or Inclusions is unsatisfactory in Buyer's subjective discretion, Buyer shall, on or before Inspection Objection Deadline (§ 2c): (1) notify Seller in writing that this contract is terminated,or (2) provide Seller with a written description of any unsatisfactory physical condition which Buyer requires Seller to correct (Notice to Correct). If written notice is not received by Seller on or before Inspection Objection Deadline (§ 2c), the physical condition of the Property and Inclusions shall be deemed to be satisfactory to Buyer. b. Resolution Deadline. If a Notice to Correct is received by Seller and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Resolution Deadline (§ 2c), this contract shall terminate one calendar day following the Resolution Deadline (§ 2C),unless before such termination Seller receives Buyer's written withdrawal of the Notice to Correct. PREPARE r,.. AG T:SANDRA MARKLEY, CBS 2-9-•..C n -- o Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFAS W 5•� ©2002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC 9e(�a{8 Buyer(s) �� r 07/22/02 21:49:39 Seller(s) l7/�y', • • c. Damage; Liens; Indemnity. Buyer is responsible for payment for all inspections, surveys, engineering reports or for any other work performed at Buyer's request and shall pay for any damage which occurs to the Property and Inclusions as a result of such activities. Buyer shall not permit claims or liens of any kind against the Property for inspections,surveys,engineering reports and for 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 subsection, including Seller's reasonable attorney fees. The provisions of this subsection shall survive the termination of this contract. 11. CLOSING. Delivery of deed(s) 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 12. 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. distribution utility easements, c. those specifically described rights of third parties not shown by the public records of which Buyer has actual knowledge and which were accepted by Buyer in accordance with § 8b[Matters Not Shown by the Public Records],and d. inclusion of the Property within any special taxing district, and e. the benefits and burdens of any declaration and party wall agreements,if any, and f. other n/a 13. 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. 14. CLOSING COSTS; DOCUMENTS AND SERVICES. 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. Buyer and Seller shall sign and complete all customary or reasonably required documents at or before Closing. Fees for real estate Closing services shall be paid at Closing by ® One-Half by Buyer and One-Half by Seller ❑ Buyer ❑ Seller ❑ Other n/a . The local transfer tax of n/a %of the Purchase Price shall be paid at Closing by ❑ Buyer ❑ Seller. Any sales and use tax that may accrue because of this transaction shall be paid when due by 0 Buyer 0 Seller. 15. 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 0 The Taxes for the Calendar Year Immediately Preceding Closing ®The Most Recent Mill Levy and Most Recent Assessment 0 Other n/a b. Rents. Rents based on ❑ Rents Actually Received 0 Accrued. Security deposits held by Seller shall be credited to Buyer. Seller shall assign all leases to Buyer and Buyer shall assume such leases, c. Other Prorations. Water, sewer charges; and interest on continuing loan(s), if any; and41._ ].c., TO TO DATE OFdPiWW'i re an 4...1 Pax D4 ✓/It 1.nesSS rr d. Final Settlement. Unless otherwise agreed in writing,these prorations shall be final. 16. POSSESSION.Possession of the Property shall be delivered to Buyer on Possession Date andPossession Time (§ 2c), subject to the following lease(s)or tenancy(s): BUYER AGREES TO ALLOW SELLER TO CONTINUE TO OCCUPY PROPERTY (1015 8TH AVENUE) FOR A PERIOD OF UP TO EIGHTEEN MONTHS FOLLOWING THE DATE OF CLOSING AT NO ADDITIONAL EXPENSE TO SELLER, EXCEPT FOR THE WATER,SEWER AND UTILITIES CHARGES WHICH COINCIDE WITH THE OCCUPANCY PERIOD.SELLER WILL GIVE BUYER THIRTY(30) DAYS NOTICE PRIOR TO VACATING PROPERTY. IN THE EVENT SELLER VACATES THE PROPERTY PRIOR TO THE END OF THE 18 MONTH PERIOD, SET FORTH ABOVE, SELLER WAIVES ANY CLAIM FOR ikCOMPENSATION FOR ANY UNUSED TERM. IN THE EVENT BUYER DEMANDS POSSESSION PRIOR TO THE END OF THE 18 MONTH TERM, THE BUYER hALL PAY THE SELLER COMPENSATION IN THE AMOUNT OF $650.00 PER MONTH 0 PO-RATED FOR ANY (.,f LESSOR TIME. BUYER SHALL GIVE SELLER AT LEAST 30 DAYS NOTICE PRIOR TO MAKING DEMAND 18 MONTH PERIOD. BUYER AGREES THAT SELLER MAY TAKE HVAC(HEATING AND AIR CONDITIONING) UNITS FROM PREMISES UPON VACATING PREMISES, OR WITHIN TEN DAYS OF VACATING. If Seller, after Closing, fails to deliver possession as specified, Seller shall be subject to eviction and shall be additionally liable to Buyer for payment of$ 50 per day from the Possession Date (§ 2c)until possession is delivered. 17. NOT ASSIGNABLE. This contract shall not be assignable by Buyer without Seller's prior written consent. Except as so restricted, this contract shall inure to the benefit of and be binding upon the heirs,personal representatives,successors and assigns of the parties. 18. CONDITION OF, AND DAMAGE TO PROPERTY AND INCLUSIONS. Except as otherwise provided in this contract, the Property, Inclusions or both shall be delivered in the condition existing as of the date of this contract,ordinary wear and tear excepted. a. Casualty;Insurance. In the event the Property or Inclusions shall be damaged by fire or other casualty prior to Closing,in an amount of not more than ten percent of the total Purchase Price,Seller shall be obligated to repair the same before the Closing Date (§ 2c). In the event such damage is not repaired within said time or if the damages exceed such sum,this contract may be terminated at the option of Buyer by delivering to Seller written notice of termination. Should Buyer elect to carry out this contract despite such damage,Buyer shall be entitled to a credit, at Closing, PREPARED BY AGENT:SANDRA MARKLEY, CBS 2-9- ontract to Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealF 01 are,02002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC a �'�j,i°oj B a}t Seller(s 07/22/02 21:49:39 9 Y\ Buyer* for all the insurance proceeds resulting from such damage to the Property and Inclusions payable to Seller but not the owners'association,if any,plus the amount of any deductible provided for in such insurance policy, such credit not to exceed the total Purchase Price. b. Damage; Inclusions; Services. Should any Inclusion(s)or service(s)(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(s) or service(s) 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(s), service(s) or fixture(s) is not the responsibility of the owners' association, if any, less any insurance proceeds received by Buyer covering such repair or replacement. c. Walk-Through;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. 19. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this document, Buyer and Seller acknowledge that the Selling Company or the Listing Company 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. 20. TIME OF ESSENCE 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 other obligation hereunder is not performed or waived as herein provided,there shall be the following remedies: a. If Buyer is in Default. ❑ (1) Specific Performance. Seller may elect to treat this contract as canceled, in which case all payments and things of value received hereunder shall be forfeited and retained on behalf of 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. (2) Liquidated Damages. All payments and things of value received hereunder shall be forfeited by Buyer and retained on behalf of Seller and both parties shall thereafter be released from all obligations hereunder. It is agreed that such payments and things of value are LIQUIDATED DAMAGES and (except as provided in subsection c) are 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 payments and things of value received hereunder shall be returned and Buyer may recover such damages as may be proper, or Buyer may elect to treat this contract as being in full force and effect and Buyer shall have the right to specific performance or damages,or both. c. Costs and Expenses. In the event of any arbitration or litigation relating to this contract, the arbitrator or court shall award to the prevailing party all reasonable costs and expenses,including attorney fees. 21. MEDIATION. If a dispute arises relating to this contract, prior to or after Closing, and is not resolved, the parties shall first proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree before any settlement is binding. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The mediation, unless otherwise agreed, shall terminate in the event the entire dispute is not resolved 30 calendar days from the date written notice requesting mediation is sent by one party to the other(s).This Section shall not alter any date in this contract,unless otherwise agreed. 22. EARNEST MONEY DISPUTE. Notwithstanding any termination of this contract, Buyer and Seller agree that, in the event of any controversy regarding the Earnest Money and things of value held by broker or Closing Company (unless mutual written instructions are received by the holder of the Earnest Money and things of value), broker or Closing Company shall not be required to take any action but may await any proceeding, or at broker's or Closing Company's option and sole discretion, may interplead all parties and deposit any moneys or things of value into a court of competent jurisdiction and shall recover court costs and reasonable attorney fees. 23. TERMINATION. In the event this contract is terminated, all payments and things of value received hereunder shall be returned and the parties shall be relieved of all obligations hereunder,subject to§ § 10c,21 and 22. 24. ADDITIONAL PROVISIONS. (The language of these additional provisions has not been approved by the Colorado Real Estate Commission.) SELLER AGREES TO PAY 3% REAL COMMISSION TO CLARKSON LAND,LLC. DAVID G. CLARKSON IS A LICENSED REAL ESTATE BROKER IN COLORADO. 25. ENTIRE AGREEMENT; SUBSEQUENT MODIFICATION; SURVIVAL. This contract 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 which, by its terms, is intended to be performed after termination or Closing shall survive the same. 26. FACSIMILE. Signatures O May ® May Not be evidenced by facsimile. Documents with original signatures shall be provided to the other party at Closing,or earlier upon request of any party. 27. NOTICE. Except for the notice requesting mediation described in § 21,any notice to Buyer shall be effective when received by Buyer or by Selling Company and any notice to Seller shall be effective when received by Seller or Listing Company. 28. 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 acceptance pursuant to § 27 on or before Acceptance Deadline Date 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. PREPARE Y E SANDRA MARKLEY, CBS 2-9-9 ,Cont to uy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T So r 2002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC 0722/02 21:49:39 / �age itf,$ Buyer(s) Sellers 11iy'i� Cr•A9RSON LAND LLC •• ASS GNS 920 54TH AV a• =, GR EL`EY C 34 ////''�� Bue.#: 970 3• �' P 9 0- BUYER DATE /.�/7 2 2 / .� By: DAVID G. C SON [NOTE: If this offer is being countered or rejected, do not sign this document. Refer to § 29] BK CORNERSTONE INVESTMENTS LLC _ 1015 AVENUE, GREELEY, CO 80631 H e. 9739,M1-850 SELLER •�{ / DATE L G- By: RON KINGSFORD BK CORNERSTONE INVESTMENTS LLC. 1015 8TH AVENUE, GREELEY, CO 80634 Bus.#: 970-304-0 70 r J� SELLER DATE �.2 �J v [X� By: JOSEPH I BODIN 29. COUNTER: REJECTION.This offer is O Countered O Rejected. Initials only of party(Buyer or Seller)who countered or rejected offer END OF CONTRACT Note:Closing Instructions should be signed on or before Title Deadline. BROKER ACKNOWLEDGMENTS. The undersigned Broker(s) acknowledges receipt of the Earnest Money deposit specified in § 4 and, while not a party to the contract,agrees to cooperate upon request with any mediation conducted under§21. Selling Company Brokerage Relationship. The Selling Company and its licensees have been engaged in this transaction as O Buyer Agent O Seller Agent/Subagent O Dual Agent ®Transaction-Broker. Listing Company Brokerage Relationship. The Listing Company and its licensees have been engaged in this transaction as ❑Seller Agent O Dual Agent ® Transaction-Broker. BROKERS'COMPENSATION DISCLOSURE. Selling Company's compensation or commission is to be paid by: O Buyer ®Seller O Listing Company O Other n/a (To be completed by Listing Company) Listing Company's compensation or commission is to be paid by O Buyer ®Seller O Other n/a Selling Company: PREPARED BY AGENT:SANDRA MARKLEY, CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission ReaIFA$T®Software,©2002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC 07/22/02 21:49:39 Page 7 of 8 • Clarkson Land, LLC 920 54th Avenue Suite 200 Greeley, CO 8 634 Phone: 970-3 -0802, / F : 970- -08 By: '' 7-7 2 �`' Signature David . Clarkson Date Listing Company: CLARKSON LAND, LLC (Name of Company) By: Signature DAVID G. CLARKSON Date Listing Company's Address: 920 54TH AVENUE GREELEY, COLORADO Listing Company's Telephone No: 970-353-0802 Listing Company's Fax No: 970-353-0811 PREPARED BY AGENT:SANDRA MARKLEY, CBS 2-9-99,Contract to Buy and Sell Real Estate(Commercial),6/3/99.Colorado Real Estate Commission RealFA$T®Software,®2002,Version 6.11.Licensed to David Clarkson,Clarkson Land,LLC 07/22/02 21:49:39 ,gage f Buyer(s) Seller(s) WELD COUNTY TITLE COMPANY 1221 8th Avenue Greeley, CO 80631 Phone: (970) 356-3232 TRANSMITTAL FILE NO: CW64923 POLICY NO: 72106-209674 DATE: September 16, 2002 VALUED CUSTOMER: ATTN DON WARDEN - WELD COUNTY FINANCE COUNTY OF WELD Enclosed please find your Owner's Title Insurance Policy in regard to the following property: THE SOUTH 32 1/2 FEET OF LOT 1, BLOCK 77, CITY OF GREELEY, WELD COUNTY, COLORADO. Property Address: 1015 8TH AVENUE GREELEY COLORADO 80631 We appreciate the opportunity to provide your title insurance needs. Please call with any questions about this policy. Please keep this policy in a safe place. This policy may afford you valuable credits with Weld County Title Company on future transactions when you sell the property or borrow in connection with the property. Please instruct your agent or lender to call us and refer to File Number CW64923 to give you eligible credits and the best possible service as we have already established and maintained a file on your property. , eoa-aoa/ �J t.31::1 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY I (10-17-92) F J•. Policy No. 72106- 209674 t ii CHICAGO TITLE INSURANCE COMPANY ., a SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE I• CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, CHICAGO TITLE ". INSURANCE COMPANY,a Missouri corporation,herein called the Company,insures,as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: a "I I. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. F The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the titla, as insured, but only to the extent provided in the Conditions and Stipulations. °! In Witness Whereof CHICAGO TITLE INSURANCE COMPANY has caused this policy to be signed and sealed as III of Date of Policy shown in Schedule A.the policy to become valid when countersigned by an authorized signatory. it:,. i III , iI It, Ili ;::,y CHICAGO TITLE INSURANCE COMPANY .. pq'. 9 w., By: zet„,„117 tr. ,,, ATTEST President (ittelk?I-1;A ,-,, " Secretary Reorder Form No.8256(Reprinted 10/00). ALTA Owner's Policy(10-17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs,attorneys'fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land;(di)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part;or(iv)environmental protection,or the effect of any violation of these laws,ordinances or governmental regulations,except to the extent that a notice of the enforcement thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects,liens,encumbrances,adverse claims or other matters: (a) created,suffered,assumed or agreed to by the insured claimant; (b) not known to the Company,not recorded in the public records at Date of Policy,but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy;or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim,which arises out of the transaction vesting in the Insured the estate or interest insured by this policy,by reason of the operation of federal bankruptcy,state insolvency,or similar creditors'rights laws,that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer;or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer;or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. OWNER POLICY NO. 72106-209674 SCHEDULE A Amount of Insurance: Date of Policy: RE: Our Order No. : $130,000.00 AUGUST 19, 2002 CW64923 7:00 A.M. 1. Name of Insured: COUNTY OF WELD, A BODY CORPORATE AND POLITIC 2 . The estate or interest in the land described herein and which is covered by this policy is: FEE SIMPLE 3 . The estate or interest referred to herein is at Date of Policy vested in the insured. 4. The land described herein is encumbered by the mortgages or trust deeds, if any, shown in Schedule B hereof. 5. The land referred to in this policy is described as follows: THE SOUTH 32 1/2 FEET OF LOT 1, BLOCK 77, CITY OF GREELEY, WELD COUNTY, COLORADO. This Policy valid only if Schedule B is attached. - 1 - OWNER POLICY NO. 72106-209674 SCHEDULE B This policy does not insure against loss or damage by reason of the following exceptions: 1. Rights or claims of parties in possession not shown by the public records. 2 . Easements, or claims of easements, not shown by the public records. 3 . Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the premises would disclose and which are not shown by the public records. 4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Taxes and assessments which are a lien or due and payable; and any tax, special assessments, charges or lien imposed for water or sewer service, or for any other special taxing district, any unredeemed tax sales. 6. Taxes for the year 2002, a lien, but not yet due and payable. 7. Rights of way and easements as now established and used, including but not limited to roads, ditches, pipe lines, power lines, telephone lines and reservoirs. 8. Rights of parties under unrecorded tenancies. 9. Party wall rights as set forth in document recorded January 3, 1953 in Book 1347 at Page 229, between L. L. Wilkinson and Edward E. Sears, being the North boundary line of subject property. Said document includes the following provisions: The centerline of any replacement wall shall be the North boundary line of subject property, and any replacement of this wall shall be and remain a party wall between grantor and grantee, their heirs and assigns, with equal benefits and burdens to the respective owners. 10. Terms, conditions and provisions of CITY of GREELEY Ordinance No. 5, 2002, which creates Improvement District No. 464, evidenced by document recorded FEBRUARY 26, 2002, in BOOK as RECEPTION /NOO.2928003. Countersigned by C 8027.7a [ 2,1,/tJA40y3 as Authorized Signatory - 2 - CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS (c)Whenever the Company shall have brought an action or interposed a The fo'lowing terms when used in this policy mean: defense as required or permitted by the provisions of this policy,the Company (a)"insured":the insured named in Schedule A,and,subject to any rights may pursue any litigation to final determination by a court of competent juris- or defenses the Company would have had against the named insured,those diction and expressly reserves the right,in its sole discretion,to appeal from who succeed to the interest of the named insured by operation of law as any adverse judgment or order. distinguished from purchase including,but not limited to,heirs,distributees, (d)In all cases where this policy permits or requires the Company to prose- devisees, survivors, personal representatives, next of kin, or corporate or cute or provide for the defense of any action or proceeding,the insured shall fiduciary successors. secure to the Company the right to so prosecute or provide defense in the (b)"insured claimant":an insured claiming loss or damage. action or proceeding, and all appeals therein, and permit the Company to (c)"knowledge" or "known": actual knowledge, not constructive knowl- use, at its option, the name of the insured for this purpose. Whenever edge or notice which may be imputed to an insured by reason of the public requested by the Company,the insured,at the Company's expense,shall give records as defined in this policy or any other records which impart construc- the Company all reasonable aid (i) in any action or proceeding, securing five notice of matters affecting the land. evidence, obtaining witnesses, prosecuting or defending the action or pro- (d)"land":the land described or referred to in Schedule A, and improve- ceeding,or effecting settlement,and(ii)in any other lawful act which in the ments affixed thereto which by law constitute real property.The term"land" opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured.If the Company is prejudiced by the failure of does not include any property beyond the lines of the area described or to referred to in Schedule A, nor any right,title, interest,estate or easement in the insured too furr nish h the required termincoopeate, intion,the Company's obligations oblige- abutting a- abutting streets,roads,avenues,alleys,lanes,ways or waterways,but noth- liothe insured toef d,prosecute, tpe,i cy shall ay including any a ditty or matter ing herein shall modify or limit the extent to which a right of access to and from or a defend,requiring r such or tio any litigation,with regard to the matter the land is insured by this policy. or matters such cooperation. (e)"mortgage": mortgage, deed of trust, trust deed, or other security 5. PROOF OF LOSS OR DAMAGE instrument. In addition to and after the notices required under Section 3 of these Condi- (f)"public records": records established under state statutes at Date of tions and Stipulations have been provided the Company, a proof of loss or Policy for the purpose of imparting constructive notice of matters relating to damage signed and sworn to by the insured claimant shall be furnished to the real property to purchasers for value and without knowledge.With respect to Company within 90 days after the insured claimant shall ascertain the facts Section 1(a)(iv)of the Exclusions From Coverage,"public records"shall also giving rise to the loss or damage.The proof of loss or damage shall describe include environmental protection liens filed in the records of the clerk of the the defect in, or lien or encumbrance on the title, or other matter insured United States district court for the district in which the land is located. against by this policy which constitutes the basis of loss or damage and shall (g)"unmarketability of the title": an alleged or apparent matter affecting state,to the extent possible,the basis of calculating the amount of the loss or the title to the land, not excluded or excepted from coverage, which would damage.If the Company is prejudiced by the failure of the insured claimant to entitle a purchaser of the estate or interest described in Schedule A to be provide the required proof of loss or damage,the Company's obligations to released from the obligation to purchase by virtue of a contractual condition the insured under the policy shall terminate,including any liability or oblige- requiring the delivery of marketable title. tion to defend,prosecute,or continue any litigation,with regard to the matter or matters requiring such proof of loss or damage. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE In addition,the insured claimant may reasonably be required to submit to The coverage of this policy shall continue in force as of Date of Policy in examination under oath by any authorized representative of the Company favor of an insured only so long as the insured retains an estate or interest in and shall produce for examination, inspection and copying,at such reason- the land,or holds an indebtedness secured by a purchase money mortgage able times and places as may be designated by any authorized representative given by a purchaser from the insured, or only so long as the insured shall of the Company, all records, books, ledgers, checks, correspondence and have liability by reason of covenants of warranty made by the insured in any memoranda, whether bearing a date before or after Date of Policy, which transfer or conveyance of the estate or interest.This policy shall not continue reasonably pertain to the loss or damage.Further,if requested by any autho- in force in favor of any purchaser from the insured of either(i)an estate or rized representative of the Company, the insured claimant shall grant its interest in the land, or(li) an indebtedness secured by a purchase money permission, in writing, for any authorized representative of the Company to mortgage given to the insured. examine, inspect and copy all records, books, ledgers, checks, correspon- dence 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT and memoranda in the custody or control of a third party,which reason- ably pertain to the loss or damage.All information designated as confidential The insured shall notify the Company promptly in writing(i)in case of any by the insured claimant provided to the Company pursuant to this Section litigation as set forth in Section 4(a)below,(ii)in case knowledge shall come to shall not be disclosed to others unless, in the reasonable judgment of the an insured hereunder of any claim of title or interest which is adverse to the Company, it is necessary in the administration of the claim. Failure of the title to the estate or interest,as insured,and which might cause loss or dam- insured claimant to submit for examination under oath,produce other reason- age for which the Company may be liable by virtue of this policy,or(iii)if title to ably requested information or grant permission to secure reasonably neces- the estate or interest,as insured,is rejected as unmarketable.If prompt notice sary information from third parties as required in this paragraph shall termi- shall not be given to the Company,then as to the insured all liability of the nate any liability of the Company under this policy as to that claim. Company shall terminate with regard to the matter or matters for which prompt notice is required;provided,however,that failure to notify the Company shall 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;TERMINATION in no case prejudice the rights of any insured under this policy unless the OF LIABILITY Company shall be prejudiced by the failure and then only to the extent of the In case of a claim under this policy,the Company shall have the following prejudice. additional options: 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED (a)To Pay or Tender Payment of the Amount of Insurance. CLAIMANT TO COOPERATE To pay or tender payment of the amount of insurance under this policy (a)Upon written request by the insured and subject to the options con- together with any costs,attorneys'fees and expenses incurred by the insured rained in Section 6 of these Conditions and Stipulations,the Company,at its claimant,which were authorized by the Company,up to the time of payment or own cost and without unreasonable delay,shall provide for the defense of an tender of payment and which the Company is obligated to pay. insured in litigation in which any third party asserts a claim adverse to the title Upon the exercise by the Company of this option,all liability and obligations to the insured under this policy or interest as insured,but only as to those stated causes of action alleging a y,other than to make the payment required,shall defect,lien or encumbrance or other matter insured against by this policy.The terminate, including any liability or obligation to defend, prosecute,or con- Company shall have the right to select counsel of its choice(subject to the tinue any litigation, and the policy shall be surrendered to the Company for right of the insured to object for reasonable cause)to represent the insured as cancellation. to those stated causes of action and shall not be liable for and will not pay the (b)To Pay or Otherwise Settle With Parties Other than the Insured or fees of any other counsel. The Company will not pay any fees, costs or With the Insured Claimant. expenses incurred by the insured in the defense of those causes of action (i)to pay or otherwise settle with other parties for or in the name of an which allege matters not insured against by this policy. insured claimant any claim insured against under this policy,together with any (b)The Company shall have the right, at its own cost, to institute and costs,attorneys'fees and expenses incurred by the insured claimant which prosecute any action or proceeding or to do any other act which in its opinion were authorized by the Company up to the time of payment and which the may be necessary or desirable to establish the title to the estate or interest,as Company is obligated to pay;or insured,or to prevent or reduce loss or damage to the insured.The Company (U)to pay or otherwise settle with the insured claimant the loss or damage may take any appropriate action under the terms of this policy,whether or not provided for under this policy, together with any costs, attorneys' fees and it shall be liable hereunder,and shall not thereby concede liability or waive any expenses incurred by the insured claimant which were authorized by the provision of this policy. If the Company shall exercise its rights under this Company up to the time of payment and which the Company is obligated to paragraph it shall do so diligently. pay. Upon the exercise by the Company of either of the options pro"ided for in (b)When liability and the extent of loss or damage has been definitely fixed paragraphs(b)(i)or(ii),the Company's obligations to the insured under this in accordance with these Conditions and Stipulations, the loss or damage policy for the claimed loss or damage,other than the payments required to be shall be payable within 30 days thereafter made,shall terminate, including any liability or obligation to defend, prose- cute or continue any litigation. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT 7. DETERMINATION,EXTENT OF LIABILITY AND COINSURANCE (a)The Company's Right of Subrogation. This policy is a contract of indemnity against actual monetary loss or dam- Whenever the Company shall have settled and paid a claim under this age sustained or incurred by the insured claimant who has suffered loss or policy,all right of subrogation shall vest in the Company unaffected by any act damage by reason of matters insured against by this policy and only to the of the insured claimant. extent herein described. The Company shall be subrogated to and be entitled to all rights and (a)The liability of the Company under this policy shall not exceed the least remedies which the insured claimant would have had against any person or of: property in respect to the claim had this policy not been issued.If requested by (i)the Amount of Insurance stated in Schedule A;or, the Company, the insured claimant shall transfer to the Company all rights (ii)the difference between the value of the insured estate or interest as and remedies against any person or properly necessary in order to perfect insured and the value of the insured estate or interest subject to the defect, this right of subrogation.The insured claimant shall permit the Company to lien or encumbrance insured against by this policy. sue,compromise or settle in the name of the insured claimant and to use the (b)In the event the Amount of Insurance stated in Schedule A at the Date of name of the insured claimant in any transaction or litigation involving these Policy is less than 80 percent of the value of the insured estate or interest or rights or remedies. the full consideration paid for the land,whichever is less,or if subsequent to If a payment on account of a claim does not fully cover the loss of the the Date of Policy an improvement is erected on the land which increases the insured claimant,the Company shall be subrogated to these rights and reme- value of the insured estate or interest by at least 20 percent over the Amount of dies in the proportion which the Company's payment bears to the whole Insurance stated in Schedule A,then this Policy is subject to the following: amount of the loss. (i)where no subsequent improvement has been made,as to any partial If loss should result from any act of the insured claimant,as stated above, loss,the Company shall only pay the loss pro rata in the proportion that the that act shall not void this policy, but the Company, in that event, shall be amount of insurance at Date of Policy bears to the total value of the insured required to pay only that part of any losses insured against by this policy which estate or interest at Date of Policy;or shall exceed the amount,if any,lost to the Company by reason of the impair- (ii)where a subsequent improvement has been made, as to any partial ment by the insured claimant of the Company's right of subrogation. loss,the Company shall only pay the loss pro rata in the proportion that 120 (b)The Company's Rights Against Non-insured Obligors. percent of the Amount of Insurance stated in Schedule A bears to the sum of The Company's right of subrogation against non-insured obligors shall the Amount of Insurance stated in Schedule A and the amount expended for the improvement. exist and shall include,without limitation,the rights of the insured to widen- The provisions of this paragraph shall not apply to costs, attorneys' fees nines,guaranties,other policies of insurance or bonds, notwithstanding any and expenses for which the Company is liable under this policy,and shall only terms or conditions contained in those instruments which provide for subroga- apply to that portion of any loss which exceeds,in the aggregate,10 percent of tion rights by reason of this policy. the Amount of Insurance stated in Schedule A. 14. ARBITRATION (c)The Company will pay only those costs,attorneys'fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. Unless prohibited by applicable law,either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the 8. APPORTIONMENT American Arbitration Association.Arbitrable matters may include,but are not If the land described in Schedule A consists of two or more parcels which limited to, any controversy or claim between the Company and the insured are not used as a single site,and a loss is established affecting one or more of arising out of or relating to this policy.any service of the Company in connec- the parcels but not all,the loss shall be computed and settled on a pro rata tion with its issuance or the breach of a policy provision or other obligation.All basis as if the amount of insurance under this policy was divided pro rata as to arbitrable matters when the Amount of Insurance is$1,000,000 or less shall the value on Dale of Policy of each separate parcel to the whole,exclusive of be arbitrated at the option of either the Company or the insured.All arbitrable any improvements made subsequent to Date of Policy, unless a liability or matters when the Amount of Insurance is in excess of$1,000,000 shall be value has otherwise been agreed upon as to each parcel by the Company and arbitrated only when agreed to by both the Company and the insured.Arbitra- the insured at the time of the issuance of this policy and shown by an express tion pursuant to this policy and under the Rules in effect on the date the statement or by an endorsement attached to this policy demand for arbitration is made or, at the option of the insured,the Rules in 9. LIMITATION OF LIABILITY effect at Date of Policy shall be binding upon the parties. The award may (a)If the Company establishes the title,or removes the alleged defect,lien include attorneys'fees only if the laws of the state in which the land is located or encumbrance,or cures the lack of a right of access to or from the land,or permit a court to award attorneys'fees to a prevailing party.Judgment upon cures the claim of unmarketability of title, all as insured, in a reasonably the award rendered by the Arbitrator(s) may be entered in any court having diligent manner by any method,including litigation and the completion of any jurisdiction thereof. appeals therefrom,it shall have fully performed its obligations with respect to The law of the situs of the land shall apply to an arbitration under the Title that matter and shall not be liable for any loss or damage caused thereby. Insurance Arbitration Rules. (b)In the event of any litigation,including litigation by the Company or with A copy of the Rules may be obtained from the Company upon request. the Company's consent,the Company shall have no liability for loss or dam- age until there has been a final determination by a court of competent jurisdic- 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT Lion,and disposition of all appeals therefrom,adverse to the title as insured. (a)This policy together with all endorsements,if any,attached hereto by the (c)The Company shall not be liable for loss or damage to any insured for Company is the entire policy and contract between the insured and the Com- liability voluntarily assumed by the insured in settling any claim or suit without pany.In interpreting any provision of this policy,this policy shall be construed the prior written consent of the Company. as a whole. • 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF (b)Any claim of loss or damage,whether or not based on negligence,and LIABILITY which arises out of the status of the title to the estate or interest covered All payments under this policy,except payments made for costs,attorneys' hereby or by any action asserting such claim,shall be restricted to this policy. fees and expenses,shall reduce the amount of the insurance pro tanto. (c)No amendment of or endorsement to this policy can be made except by 11. LIABILITY NONCUMULATIVE a writing endorsed hereon or attached hereto signed by either the President,a Vice President,the Secretary,an Assistant Secretary,or validating officer or It is expressly understood that the amount of insurance under this policy authorized signatory of the Company. shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the 16. SEVERABILITY insured has agreed, assumed, or taken subject, or which is hereafter ex- In the event any provision of the policy is held invalid or unenforceable ecuted by an insured and which is a charge or lien on the estate or interest under applicable law,the policy shall be deemed not to include that provision described or referred to in Schedule A, and the amount so paid shall be and all other provisions shall remain in full force and effect. deemed a payment under this policy to the insured owner. 12. PAYMENT OF LOSS 17. NOTICES,WHERE SENT (a)No payment shall be made without producing this policy for endorse- All notices required to be given the Company and any statement in writing ment of the payment unless the policy has been lost or destroyed,in which required to be furnished the Company shall include the number of this policy case proof of loss or destruction shall be furnished to the satisfaction of the and shall be addressed to the Company at the issuing office or to: Company. Chicago Title Insurance Company Claims Department 171 North Clark Street Chicago,Illinois 60601-3294 „ WELD COUNTY TITLE COMPANY 1221 8th Avenue Greeley, CO 80631 Phone: (970) 356-3232 TRANSMITTAL FILE NO: CW64918 POLICY NO: 72097-093038 DATE: October 7, 2002 VALUED CUSTOMER: COUNTY OF WELD, A BODY CORPORATE AND POLITIC P.O. BOX 758 GREELEY, CO 80632 Enclosed please find your Owner's Title Insurance Policy in regard to the following property: The North 125 feet of Lots 1 and 2; The North 105 feet of Lot 8; The East 35 feet of Lot 12; The North 60 feet of Lot 15; All of Lots 3, 4, 5, 6, 7, 13 and 14; EXCEPTING THEREFROM the East 3 feet of the South 65 feet of said Lot 3; All in Block 77, in the City of Greeley, Weld County, Colorado. Property Address: 810 10TH STREET GREELEY COLORADO 80631 We appreciate the opportunity to provide your title insurance needs. Please call with any questions about this policy. Please keep this policy in a safe place. This policy may afford you valuable credits with Weld County Title Company on future transactions when you sell the property or borrow in connection with the property. Please instruct your agent or lender to call us and refer to File Number CW64918 to give you eligible credits and the best possible service as we have already established and maintained a file on your property. Owners Your Title Insurance Policy is'a legal contract between If you want to make a claim, see Item 3 under Information you and Chicago Title Insurance Company. Conditions errpage 2. Sheet It applies only to a one-to-four residential lot or You do not owe any more premiums for the Policy. condominium unit. If your land is not either of these, This sheet is not your insurance Policy. It is only a contact us immediately. brief outline of some of the important Policy features. The Policy insures you against certain risks to your The Policy explains in detail your rights and land title. These risks are listed on page one of the obligations and our rights and obligations. Since the Policy. The Policy is limited by: Policy—and not this sheet—is the legal document, YOU SHOULD READ THE POLICY VERY • Exclusions on page 2 CAREFULLY. • Exceptions on Schedule B If you have any questions about your Policy, contact: • Conditions on pages 2 and 3 CHICAGO TITLE INSURANCE COMPANY You should keep the Policy even if you transfer the title to your land. Policy No. 72097- 0 0 3 0 3 8 di al di di Ala Your Chicago Title Residential ©e Insurance Company Title Insurance 171 North Clark Street Policy Chicago,Illinois 60601-3294 Table of PAGE PAGE Contents OWNER'S COVERAGE STATEMENT 1 EXCLUSIONS 2 COVERED TITLE RISKS I CONDITIONS 2 and 3 COMPANY'S DUTY TO DEFEND AGAINST 1. Definitions COURT CASES SCHEDULE A INSERT 2. Continuation of Coverage 3. How to Make a Claim Policy Number, Date and Amount 4. Our Choices When You Notify Us of a Claim 1. Name of Insured 5. Handling a Claim or Court Case 2. Interest in Land Covered 6. Limitation of the Company's Liability 3. Description of the Land SCHEDULE B—EXCEPTIONS INSERT 7. Transfer of Your Rights 8. Arbitration 9. Our Liability is Limited to This Policy Reorder Form No.3663(Reprinted 10/00) ALTA Residential Owner's Policy(6-1-87) Chicago Title Insurance Residential Company Title Insurance Policy One-to-Four Family Residences Owner's Coverage Statement This policy insures your title to the land described in • Exceptions in Schedule B Schedule A—if that land is a one-to-four family •residential lot or condominium unit. Conditions on pages 2 and 3 We insure you against actual loss resulting from: Your insurance, as described in this Coverage Statement, is effective on the Policy Date shown in • any title risks covered by this Policy—up to the Schedule A. Policy Amount and Your insurance is limited by the following: • any costs, attorneys'fees and expenses we have to • Exclusions on page 2 pay under this Policy Covered Title Risks This Policy covers the following title risks, if they the Policy Date—unless you agreed to pay for the affect your title on the Policy Date. labor and material. 1. Someone else owns an interest in your title. 9. Others have rights arising out of leases, contracts, 2. A document is not properly signed, sealed, or options. acknowledged, or delivered. 10. Someone else has an easement on your land. 3. Forgery, fraud, duress, incompetency, incapacity 11. Your title is unmarketable, which allows another or impersonation. person to refuse to perform a contract to purchase, to lease or to make a mortgage loan. 4. Defective recording of any document. 5. You do not have any legal right of access to and 12. You are forced to remove your existing from the land. structure—other than a boundary wall or fence—because: 6. There are restrictive covenants limiting your use of the land. • it extends on to adjoining land or on to any easement 7. There is a lien on your title because of: • it violates a restriction shown in Schedule B • a mortgage or deed of trust • it violates an existing zoning law • a judgment, tax, or special assessment 13. You cannot use the land because use as a • a charge by a homeowner's or condominium single-family residence violates a restriction shown association in Schedule B or an existing zoning law. 8. There are liens on your title, arising now or later, 14. Other defects, liens, or encumbrances. for labor and material furnished before Company's Duty to Defend Against Court Cases We will defend your title in any court case as to that We can end this duty to defend your title by exercising part of the case that is based on a Covered Title Risk any of our options listed in Item 4 of the Conditions. insured against by this Policy. We will pay the costs, attorneys'fees, and expenses we incur in that defense. Page 1 This policy is not complete without Schedules A and B. • OWNER POLICY NO. 72097-093038 SCHEDULE A Amount of Insurance: Date of Policy: RE: Our Order No. : $750, 000 .00 AUGUST 19, 2002 CW64918 7:00 A.M. 1. Name of Insured: COUNTY OF WELD, A BODY CORPORATE AND POLITIC 2 . The estate or interest in the land described herein and which is covered by this policy is: FEE SIMPLE 3. The estate or interest referred to herein is at Date of Policy vested in the insured. 4 . The land described herein is encumbered by the mortgages or trust deeds, if any, shown in Schedule B hereof. 5. The land referred to in this policy is described as follows: The North 125 feet of Lots 1 and 2; The North 105 feet of Lot 8; The East 35 feet of Lot 12; The North 60 feet of Lot 15; All of Lots 3, 4, 5, 6, 7, 13 and 14; EXCEPTING THEREFROM the East 3 feet of the South 65 feet of said Lot 3; All in Block 77, in the City of Greeley, Weld County, Colorado. This Policy valid only if Schedule B is attached. - 1 - • OWNER POLICY NO. 72097-093038 SCHEDULE B This policy does not insure against loss or damage by reason of the following exceptions: 1. Rights or claims of parties in possession not shown by the public records. 2 . Easements, or claims of easements, not shown by the public records. 3 . Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the premises would disclose and which are not shown by the public records. 4 . Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Taxes and assessments which are a lien or due and payable; and any tax, special assessments, charges or lien imposed for water or sewer service, or for any other special taxing district, any unredeemed tax sales. 6. Taxes for the year 2002, a lien, but not yet due and payable. 7. Terms, conditions and provisions of Agreement recorded OCTOBER 19, 1919 in BOOK 535 at PAGES 549 and 551. 8. Terms, conditions and provisions of Agreement recorded MARCH 5, 1943 in BOOK 1106 at PAGES 467 and 470 . 9. Terms, conditions and provisions of Agreement recorded JUNE 11, 1949 in BOOK 1248 at PAGE 533 . 10. Terms, conditions and provisions of Agreement, between Greeley Gas Company and Chlanda-Harris Furniture Company recorded FEBRUARY 21, 1980 in BOOK 896 as RECEPTION NO. 1817638 . 11. Terms, conditions and provisions of Easement Agreement #1 For East-West Common Boundary Line recorded APRIL 20, 2000 as RECEPTION NO. 2762996. 12 . Terms, conditions and provisions of Easement Agreement #2 For North-South Common Boundary Line recorded APRIL 20, 2000 as RECEPTION NO. 2762997. 13 . Terms, conditions and provisions of Attornment, Non-Disturbance, Subordination and Estoppel Agreement by FSY Partnership, a Colorado general partnership, Comerica Bank, a Michigan banking corporation and Weld County Garage, Inc. , a Colorado corporation recorded APRIL 24, 2002 as RECEPTION NO. 2945450. 14 . Terms, conditions and provisions of CITY of GREELEY Ordinance No. 5, 2002, which creates Improvement District No. 464, evidenced by document recorded FEBRUARY 26, 2002, as RECEPTION NO. 2928003. Exceptions numbered 1 AND 4 are hereby omitted. CONTINUED NEXT PAGE - 2 - • SCHEDULE B CONTINUED Countersigned by ` j� na �j '�(,dyn) as Authorized Signatory - 3 - Exclusions • In addition to the Exceptions in Schedule B,you are not • the taking happened prior to the Policy Date and is insured against loss, costs, attorneys'fees, and expenses binding on you if you bought the land without resulting from: knowing of the taking 1. Governmental police power, and the existence or 3. Title Risks: violation of any law or government regulation. This • that are created, allowed,or agreed to by you includes building and zoning ordinances and also laws • that are known to you,but not to us, on the Policy and regulations concerning: Date—unless they appeared in the public records • land use • that result in no loss to you • improvements on the land • that first affect your title after the Policy Date—this • land division does not limit the labor and material lien coverage • environmental protection in Item 8 of Covered Title Risks This exclusion does not apply to violations or the 4. Failure to pay value for your title. enforcement of these matters which appear in the public 5. Lack of a right: records at Policy Date. • to any land outside the area specifically described This exclusion does not limit the zoning coverage and refeved to in Item 3 of Schedule A described in Items 12 and 13 of Covered Title Risks. or 2. The right to take the land by condemning it, unless: • in streets, alleys, or waterways that touch your land • a notice of exercising the right appears in the public This exclusion does not limit the access coverage in Item records on the Policy Date 5 of Covered Title Risks. Conditions 1. Definitions a. Easement—the right of someone else to use your land d. Public Records—title records that give constructive for a spacial purpose. notice of matters affecting your title—according to b. Land—the land or condominium unit described in the state statutes where your land is located. Schedule A and any improvements on the land which e. Title—the ownership of your interest in the land, as are real property. shown in Schedule A. c. Mortgage—a mortgage, deed of trust, trust deed or other security instrument. 2. Continuation This Policy protects you as long as you: • are liable for any title warranties you make Of Coverage • own your title This Policy protects anyone who receives your title or because of your death. • own a mortgage from anyone who buys your land or 3. How To a. You Must Give The Company Notice Of Your Claim The statement must have the following facts: Make A If anyone claims a right against your insured title, • the Covered Title Risks which resulted in your loss Claim you must notify us promptly in writing. • the dollar amount of your loss Send the notice to the issuing office or • the method you used to compute the amount of your loss Chicago Title Insurance Company Claims Department You may want to provide us with an appraisal of your 171 North Clark Street loss by a professional appraiser as a part of your Chicago, Illinois 60601-3294 statement of loss. Please include the Policy number shown in Schedule We may require you to show us your records, checks, A, and the county and state where the land is letters,contracts, and other papers which relate to located. your claim of loss. We may make copies of these Our obligation to you could be reduced if: papers. • you fail to give prompt notice We may require you to answer questions under oath. and Our obligation to you could be reduced if you fail or .• your failure affects our ability to dispose of or to refuse to: defend you against the claim • provide a statement of loss b. Proof Of Your Loss Must Be Given To The Company or You must give us a written statement to prove your • answer our questions under oath claim of loss. or • show us the papers we request, This statement must be given to us not later than 90 and days after you know the facts which will let you • your failure or refusal affects our ability to dispose establish the amount of your loss. of or to defend you against the claim. Page 2 Continued on page 3 Conditions (continued) 4. Our Choices After we receive your claim notice or in any other way d. Pay you the amount required by this Policy. When You learn of a matter for which we are liable, we can do e. Take other action which will protect you. Notify Us one or more of the following: Of A Claim a. Pay the claim against your title. f. Cancel this policy by paying the Policy Amount, then in force, and only those costs, attorneys'fees b. Negotiate a settlement. and expenses incurred up to that time which we are c. Prosecute or defend a court case related to the claim. obligated to pay. 5. Handling A You must cooperate with us in handling any claim or When we defend your title, we have a right to choose Claim Or court case and give us all relevant information. the attorney. We can appeal any decision to the highest Court Case We are required to repay you only for those settlement court. We do not have to pay your claim until your case costs, attorneys'fees and expenses that we approve in is finally decided. advance. 6. Limitation a. We will pay up to your actual loss or the Policy • we settle your claim Of The Amount in force when the claim is c. The Policy Amount will be reduced by all payments Company's made—whichever is less. made under this policy—except for costs, attorneys' Liability b. If we remove the claim against your title within a fees and expenses. reasonable time after receiving notice of it, we will d. The Policy Amount will be reduced by any amount have no further liability for it. we pay to our insured holder of any mortgage shown If you cannot use any of your land because of a in this Policy or a later mortgage given by you. claim against your title, and you rent reasonable e. If you do anything to affect any right of recovery substitute land or facilities, we will repay you for you may have, we can subtract from our liability your actual rent until: the amount by which you reduced the value of that • the cause of the claim is removed right. or 7. Transfer Of When we settle a claim, we have all the rights you had We will not be liable to you if we do not pursue these Your Rights against any person or property related to the claim. You rights or if we do not recover any amount that might must transfer these rights to us when we ask, and you be recoverable. must not do anything to affect these rights. You must With the money we recover from enforcing these rights, let us use your name in enforcing these rights. we will pay whatever part of your loss we have not paid. We have a right to keep what is left. 8. Arbitration If it is permitted in your state, you or the Company The arbitration shall be under the Title Insurance may demand arbitration. Arbitration Rules of the American Arbitration Association. You may choose current Rules or Rules in The arbitration shall be binding on both you and the Company. The arbitration shall decide any matter in existence on Policy Date. dispute between you and the Company. The law used in the arbitration is the law of the place The arbitration award may: where the property is located. • include attorneys'fees if allowed by state law You can get a copy of the Rules from the Company. • be entered as a judgment in the proper court. 9. Our Liability This Policy, plus any endorsements, is the entire Is Limited To contract between you and the Company. Any claim you This Policy make against us must be made under this Policy and is subject to its terms. American CHICAGO TITLE INSURANCE COMPANY Land Title ..._ //�` Association • ] aasu gy., �� Residential I Title Insurance J ° ATTEST President Policy(6-1-87) • Page 3 a'""'^ THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PREMISES ONLY This endorsement modifies insurance under the coverage parts shown below: COMMERCIAL PROPERTY COVERAGE PART Insured: WELD COUNTY GARAGE INC LTJ 3 810 10TH STREET L r11 y rr: GREELEY CO 80631 e7:i I U: .� I 1. The Coverage Part shown is amended to include as Additional Insured the persons br)°organ1zations1isted below. : ;t 2. We agree to notify the Additional Insured named below at the address stated below of any cancellation of, or material change to this policy. Location of Premises: Loc. No. Bldg No. Address Deductible Limit 1 1 810 10TH ST SALES & SERVICE $1 , 000 $1 , 987 ,000 GREELEY CO 80631 BUILDING OWNER LOCATION 1-1 Additional Insured Name and Address: Place of Issue: FEDERATED SERVICE INSURANCE COMPANY BOARD OF WELD COUNTY COMMISSIONERS PO BOX 758 5701 West Talavi Blvd., Suite 200 GREELEY CO 80632 Glendale, AZ 85306 Phone: 602-944-5566 Home Office: Owatonna, M"' "^`n /A, 2002-242/ CP-F-17 (11-95) Policy Number: 0629980 Transaction Effective Date: 08-16-2002 gi - 9-o.1_ THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PREMISES ONLY :-_ This endorsement modifies insurance under the coverage parts shown below: ,. COMMERCIAL PROPERTY COVERAGE PART _. '' 12 'ii Q: 2.2 RFC:: Insured: : .J WELD COUNTY GARAGE INC 810 10TH STREET GREELEY CO 80631 1. The Coverage Part shown is amended to include as Additional Insured the persons or organizations listed below. 2. We agree to notify the Additional Insured named below at the address stated below of any cancellation of, or material change to this policy. Location of Premises: Loc. No. Bldg No. Address Deductible Limit 1 1 810 10TH ST SALES & SERVICE $1 ,000 82, 126 ,000 GREELEY CO 80631 BUILDING OWNER LOCATION 1-1 Additional Insured Name and Address: Place of Issue: FEDERATED SERVICE INSURANCE COMPANY BOARD OF WELD COUNTY COMMISSIONERS PO BOX 758 5701 West Talavi Blvd., Suite 200 GREELEY CO 80632 Glendale, AZ 85306 Phone: 602-944-5566 Home Office: Owatonna, MN 55060 -a2Z'V CP-F-17 (11-95) Policy Number: 0629980 Transaction Effective Date: 11-01-2002 WELD COUNTY TITLE COMPANY 1221 8th Avenue Greeley, CO 80631 Phone: (970) 356-3232 TRANSMITTAL FILE NO: CW64920 POLICY NO: 72097-093057 DATE: November 8, 2002 VALUED CUSTOMER: COUNTY OF WELD P O BOX 758 GREELEY CO 80632 Enclosed please find your Owner's Title Insurance Policy in regard to the following property: The South 65 feet of Lots 1 and 2, and the East 3 feet of the South 65 feet of Lot 3, Block 77, City of Greeley, Weld County, Colorado, except the South 32 1/2 of said Lot 1. Property Address: 1013 8TH AVENUE GREELEY COLORADO 80631 We appreciate the opportunity to provide your title insurance needs. Please call with any questions about this policy. Please keep this policy in a safe place. This policy may afford you valuable credits with Weld County Title Company on future transactions when you sell the property or borrow in connection with the property. Please instruct your agent or lender to call us and refer to File Number CW64920 to give you eligible credits and the best possible service as we have already established and maintained a file on your property. Owner's Your Title Insurance Policy is a legal contract between If you want to make a claim, see Item 3 under Information you and Chicago Title Insurance Company. Conditions on page 2. Sheet It applies only to a one-to-four residential lot or You do not owe any more premiums for the Policy. condominium unit. If your land is not either of these, This sheet is not your insurance Policy. It is only a contact us immediately. brief outline of some of the important Policy features. The Policy insures you against certain risks to your The Policy explains in detail your rights and land title. These risks are listed on page one of the obligations and our rights and obligations. Since the Policy. The Policy is limited by: Policy—and not this sheet—is the legal document, • Exclusions on page 2 YOU SHOULD READ THE POLICY VERY CAREFULLY. • Exceptions on Schedule B If you have any questions about your Policy, contact: • Conditions on pages 2 and 3 CHICAGO TITLE INSURANCE COMPANY You should keep the Policy even if you transfer the title to your land. Policy No. 72097- 0 9 30 5 7 gleaeeeeeeaagaibilleaaaeeee Your Chicago Title Residential ©® Insurance Company Title Insurance 171 North Clark Street Policy Chicago, Illinois 60601-3294 di lie Sal& IAA illh Si a like Table of PAGE PAGE Contents OWNER'S COVERAGE STATEMENT I EXCLUSIONS 2 COVERED TITLE RISKS CONDITIONS 2 and 3 COMPANY'S DUTY TO DEFEND AGAINST 1. Definitions COURT CASES SCHEDULE A INSERT 2. Continuation of Coverage 3. How to Make a Claim Policy Number, Date add Amount 4. Our Choices When You Notify Us of a Claim I. Name of Insured 5. Handling a Claim or Court Case 2. Interest in Land Covered 3. Description of the Land 6. Limitation of the Company's Liability SCHEDULE B—EXCEPTIONS INSERT 7. Transfer of Your Rights 8. Arbitration 9. Our Liability is Limited to This Policy Reorder Form No.3663(Reprinted 10/00) ALTA Residential Owner's Policy(6-1-87) Chicago Title Insurance Residential Company Title Insurance Policy One-to-Four Family Residences Owner's Coverage Statement This policy insures your title to the land described in • Exceptions in Schedule B Schedule A—if that land is a one-to-four family • Conditions on pages 2 and 3 residential lot or condominium unit. We insure you against actual loss resulting from: Your insurance, as described in this Coverage • any title risks covered by this Policy—up to the Statement, is effective on the Policy Date shown in Schedule A. Policy Amount and Your insurance is limited by the following: • any costs, attorneys'fees and expenses we have to • Exclusions on page 2 pay under this Policy Covered Title Risks This Policy covers the following title risks, if they the Policy Date—unless you agreed to pay for the affect your title on the Policy Date. labor and material. 1. Someone else owns an interest in your title. 9. Others have rights arising out of leases, contracts, or options. 2. A document is not properly signed,sealed, acknowledged, or delivered. 10. Someone else has an easement on your land. 3. Forgery, fraud, duress, incompetency, incapacity 11. Your title is unmarketable, which allows another or impersonation. person to refuse to perform a contract to purchase, to lease or to make a mortgage loan. 4. Defective recording of any document. 12. You are forced to remove your existing 5. You do not have any legal right of access to and structure—other than a boundary wall or from the land. fence—because: 6. There are restrictive covenants limiting your use of • it extends on to adjoining land or on to any the land. easement 7. There is a lien on your title because of: • it violates a restriction shown in Schedule B • a mortgage or deed of trust • it violates an existing zoning law • a judgment, tax, or special assessment 13. You cannot use the land because use as a • a charge by a homeowner's or condominium single-family residence violates a restriction shown association in Schedule B or an existing zoning law. 8. There are liens on your title, arising now or later, 14. Other defects, liens, or encumbrances. for labor and material furnished before Company's Duty to Defend Against Court Cases We will defend your title in any court case as to that We can end this duty to defend your title by exercising part of the case that is based on a Covered Title Risk any of our options listed in Item 4 of the Conditions. insured against by this Policy. We will pay the costs, attorneys'fees, and expenses we incur in that defense. Page 1 This policy is not complete without Schedules A and B. • OWNER POLICY NO. 72097-093057 SCHEDULE A Amount of Insurance: Date of Policy: RE: Our Order No. : $175, 000.00 OCTOBER 8, 2002 CW64920 7:00 A.M. 1. Name of Insured: COUNTY OF WELD, A BODY CORPORATE AND POLITIC 2 . The estate or interest in the land described herein and which is covered by this policy is: FEE SIMPLE 3 . The estate or interest referred to herein is at Date of Policy vested in the insured. 4. The land described herein is encumbered by the mortgages or trust deeds, if any, shown in Schedule B hereof. 5. The land referred to in this policy is described as follows: The South 65 feet of Lots 1 and 2, and the East 3 feet of the South 65 feet of Lot 3, Block 77, City of Greeley, Weld County, Colorado, except the South 32 1/2 of said Lot 1. This Policy valid only if Schedule B is attached. - 1 - • OWNER POLICY NO. 72097-093057 SCHEDULE B This policy does not insure against loss or damage by reason of the following exceptions: 1. Rights or claims of parties in possession not shown by the public records. 2 . Easements, or claims of easements, not shown by the public records. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the premises would disclose and which are not shown by the public records. 4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Taxes and assessments which are a lien or due and payable; and any tax, special assessments, charges or lien imposed for water or sewer service, or for any other special taxing district, any unredeemed tax sales. 6. Taxes for the year 2002, a lien, but not yet due and payable. 7. Rights of way and easements as now established and used, including but not limited to roads, ditches, pipe lines, power lines, telephone lines and reservoirs. 8 . Terms, conditions and provisions of CITY of GREELEY Ordinance No. 5, 2002, which creates Improvement District No. 464, evidenced by document recorded FEBRUARY 26, 2002, as RECEPTION NO. 2928003 . Exceptions numbered 1 AND 4 are hereby omitted. Countersigned by /ny]a atit4Ln3 as Authorized Signatory - 2 - Exclusions In addition to the Exceptions in Schedule B,you are not • the taking happened prior to the Policy Date and is insured against loss,costs, attorneys'fees, and expenses binding on you if you bought the land without resulting from: knowing of the taking 1. Governmental police power,and the existence or 3. Tide Risks: violation of any law or government regulation. This • that are created, allowed, or agreed to by you includes building and zoning ordinances and also laws • that are known to you, but not to us, on the Policy and regulations concerning: Date—unless they appeared in the public records • land use • that result in no loss to you • improvements on the land • that first affect your tide after the Policy Date—this • land division does not limit the labor and material lien coverage • environmental protection in Item 8 of Covered Title Risks This exclusion does not apply to violations or the 4. Failure to pay value for your title. enforcement of these matters which appear in the public 5. Lack of a right: records at Policy Date. • to any land outside the area specifically described This exclusion does not limit the zoning coverage and referred to in Item 3 of Schedule A described in Items 12 and 13 of Covered Title Risks. or 2. The right to take the land by condemning it, unless: • in streets, alleys,or waterways that touch your land • a notice of exercising the right appears in the public This exclusion does not limit the access coverage in Item records on the Policy Date 5 of Covered Title Risks. Conditions 1. Definitions a. Easement—the right of someone else to use your land d. Public Records—title rerords that give constructive for a special purpose. notice of matters affecting your title—according to b. Land—the land or condominium unit described in the state statutes where your land is located. Schedule A and any improvements on the land which e. Title—the ownership of your interest in the land, as are real property. shown in Schedule A. c. Mortgage—a mortgage, deed of trust, trust deed or other security instrument. 2. Continuation This Policy protects you as long as you: • are liable for any tide warranties you make Of Coverage • own your title This Policy protects anyone who receives your title or because of your death. • own a mortgage from anyone who buys your land or 3. How To a. You Must Give The Company Notice Of Your Claim The statement must have the following facts: Make A If anyone claims a right against your insured title, • the Covered Tide Risks which resulted in your loss Claim you must notify us promptly in writing. • the dollar amount of your loss Send the notice to the issuing office or • the method you used to compute the amount of your loss Chicago Title Insurance Company Claims Department You may want to provide us with an appraisal of your 171 North Clark Street loss by a professional appraiser as a part of your Chicago, Illinois 60601-3294 statement of loss. Please include the Policy number shown in Schedule We may require you to show us your records,checks, A, and the county and state where the land is letters,contracts, and other papers which relate to located. your claim of loss. We may make copies of these Our obligation to you could be reduced if: papers. • you fail to give prompt notice We may require you to answer questions under oath. and Our obligation to you could be reduced if you fail or • your failure affects our ability to dispose of or to refuse to: defend you against the claim • provide a statement of loss b. Proof Of Your Loss Must Be Given To The Company or You must give us a written statement to prow your • answer our questions under oath claim of loss. or • show us This statement must be given to us not later than 90 the papers we request, and days after you know the facts which will let you • your failure or refusal affects our ability to dispose establish the amount of your loss. of or to defend you against the claim. Page 2 Continued on page 3 Conditions (continued) 4. Our Choices After we receive your claim notice or in any other way d. Pay you the amount required by this Policy. When You learn of a matter for which we are liable, we can do ou e. Take other action which will protect y . Notify Us one or more of the following: Of A Claim a. Pay the claim against your title. f. Cancel this policy by paying the Policy Amount, then in force, and only those costs, attorneys'fees b. Negotiate a settlement. and expenses incurred up to that time which we are c. Prosecute or defend a court case related to the claim. obligated to pay. 5. Handling A You must cooperate with us in handling any claim or When we defend your title, we have a right to choose Claim Or court case and give us all relevant information. the attorney. We can appeal any decision to the highest Court Case We are required to repay you only for those settlement court. We do not have to pay your claim until your case costs, attorneys'fees and expenses that we approve in is finally decided. advance. 6. Limitation a. We will pay up to your actual loss or the Policy • we settle your claim Of The Amount in force when the claim is c. The Policy Amount will be reduced by all payments Company's made—whichever is less. made under this policy—except for costs, attorneys' Liability b. If we remove the claim against your title within a fees and expenses. reasonable time after receiving notice of it, we will d. The Policy Amount will be reduced by any amount have no further liability for it. we pay to our insured holder of any mortgage shown If you cannot use any of your land because of a in this Policy or a later mortgage given by you. claim against your title, and you rent reasonable e. If you do anything to affect any right of recovery substitute land or facilities, we will repay you for you may have, we can subtract from our liability your actual rent until: the amount by which you reduced the value of that • the cause of the claim is removed right. or 7. Transfer Of When we settle a claim, we have all the rights you had We will not be liable to you if we do not pursue these Your Rights against any person or property related to the claim. You rights or if we do not recover any amount that might must transfer these rights to us when we ask, and you be recoverable. must not do anything to affect these rights. You must With the money we recover from enforcing these rights, let us use your name in enforcing these rights. we will pay whatever part of your loss we have not paid. We have a right to keep what is left. 8. Arbitration If it is permitted in your state, you or the Company The arbitration shall be under the Title Insurance may demand arbitration. Arbitration Rules of the American Arbitration Association. You may choose current Rules or Rules in The arbitration shall be binding on both you and the Company. The arbitration shall decide any matter in existence on Policy Date. dispute between you and the Company. The law used in the arbitration is the law of the place The arbitration award may: where the property is located. • include attorneys'fees if allowed by state law You can get a copy of the Rules from the Company. • be entered as a judgment in the proper court. 9. Our Liability This Policy, plus any endorsements, is the entire Is Limited To contract between you and the Company. Any claim you This Policy make against us must be made under this Policy and is subject to its terms. American CHICAGO TITLE INSURANCE COMPANY Land Title Association a. BY: ,( Residential aI Title Insurance d ATTEST President Policy(6-1-87) C/Xowe Page 3 Secretary l Hello