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HomeMy WebLinkAbout20192984.tiffAugust 6, 2019 Petitioner: SEARS HAL MARSHALL REVOCABLE TRUST 1131 EMERALD BAY LAGUNA BEACH, CA 92651-1261 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.weldgov.com 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): 1ST NET REAL ESTATE SERVICES, INC 3333 S WADSWORTH BLVD UNIT 200 LAKEWOOD, CO 80227-5170 RE: THE BOARD OF EQUALIZATION 2019, WELD COUNTY, COLORADO NOTICE OF DECISION Docket 2019-2984 Appeal 2008224868 Hearing 8/5/2019 Dear Petitioner: On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. §39-8-101 et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2019. Account # Decision The Assessment and valuation is set as follows: Actual Value as Actual Value as Set by Determined by Assessor Board R2569403 Stipulated - Approved Stipulated Value $1,586,333 $1,028,430 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3), options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. §39-8-108(2), only the record of proceedings from your, hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2019, MUST comply with the following provisions of C.R.S. §39-8-107(5): (5)(a)(I) On and after August 10, 2019, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the Board of Assessment Appeals pursuant to C.R.S. §39-8-108(1) or a denial of an abatement of taxes pursuant to C.R.S. §39-10-114 shall provide to the County Board of Equalization or to the Board of County Commissioners of the County in the case of an abatement, and not to the Board of Assessment Appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the Board of Assessment Appeals. (b)(I) The Assessor, the County Board of Equalization, or the Board of County Commissioners of the County, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the Board of Assessment Appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the County may move the Board of Assessment Appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the County Attorney and shall be accompanied by a certification that the County Assessor or the County Board of Equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the Board of Assessment Appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the Board of Assessment Appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: (303) 864-7710 Email: baa@state.co.us Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. §39-8-108(1), the rules of Colorado appellate review and C.R.S. §24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. §39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e. Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please call me at (970) 400-4226. Very truly yours, BOARD OF EQUALIZATION �.�g[LC./IGLtO. �ydlG'l. Esther E. Gesick Clerk to the Board Weld County Board of Commissioners and Board of Equalization cc: Brenda Dones, Weld County Assessor August 6, 2019 Agent: 1ST NET REAL ESTATE SERVICES, INC 3333 S WADSWORTH BLVD UNIT 200 LAKEWOOD, CO 80227-5170 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBS ITE: www.weldgov.com 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Petitioner: SEARS HAL MARSHALL REVOCABLE TRUST 1131 EMERALD BAY LAGUNA BEACH, CA 92651-1261 RE: THE BOARD OF EQUALIZATION 2019, WELD COUNTY, COLORADO NOTICE OF DECISION Docket 2019-2984 Appeal 2008224868 Hearing 8/5/2019 Dear Petitioner: On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. §39-8-101et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2019. Account # Decision The Assessment and valuation is set as follows: Actual Value as Actual Value as Set by Determined by Assessor Board R2569403 Stipulated - Approved Stipulated Value $1,586,333 $1,028,430 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. §39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2019, MUST comply with the following provisions of C.R.S. §39-8-107(5): (5)(a)(I) On and after August 10, 2019, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the Board of Assessment Appeals pursuant to C.R.S. §39-8-108(1) or a denial of an abatement of taxes pursuant to C.R.S. §39-10-114 shall provide to the county Board of Equalization or to the Board of County Commissioners of the County in the case of an abatement, and not to the Board of Assessment Appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the board of assessment appeals. (b)(I) The Assessor, the County Board of Equalization, or the Board of County Commissioners of the County, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the Board of Assessment Appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the County may move the Board of Assessment Appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the County Attorney and shall be accompanied by a certification that the County Assessor or the County Board of Equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the Board of Assessment Appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the Board of Assessment Appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: (303) 864-7710 Email: baa@state.co.us OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. §39-8-108(1), the rules of Colorado appellate review and C.R.S. §24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. §39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e. Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please call me at (970) 400-4226. Very truly yours, BOARD OF EQUALIZATION az3/Ln.W Esther E. Gesick Clerk to the Board Weld County Board of Commissioners and Board of Equalization cc: Brenda Dones, Weld County Assessor COUNTY BOARD OF EQUALIZATION WELD COUNTY Single County Schedule Number R2569403 STIPULATION (As To Tax Year 2019 Actual Value) RE PETITION OF : NAME: ADDRESS: Sears Hal Marshall Revocable Trust 1131 Emerald Bay Laguna Beach, CA 92651 Petitioner (s) and the Weld County Assessor hereby enter into this Stipulation regarding the tax year 2019 valuation of the subject property, and jointly move the Board of Equalization to enter its order based on this Stipulation. Petitioner (s) and Assessor agree and stipulate as follows: 1. The property subject to this Stipulation is described as: WIN WAG L2 WINDSOR ASSEMBLY OF GOD 1490 Main St, Windsor, CO 2. The subject property is classified as commercial property. 3. The County Assessor originally assigned the following actual value to the subject property for the tax year 2019 Total $2,391,386 4. After further review and negotiation, Petitioner (s) and Weld County Assessor agree to the following tax year 2019 actual value for the subject property: Total $1,028,430 5. The valuation, as established above, shall be binding only with respect to tax year2019 6. Brief narrative as to why the reduction was made: After a review of all approaches to value, an adjustment was determined 7. Both parties agree that: The hearing scheduled before the Board of Equalization on 8/5/2019 at 10:30 am be vacated. nA hearing has not yet been scheduled before the Board of Equalization. 1 OO19-.D98� ASO l 03 DATED this 24 day of July , 2019 , Mike wafter:, Mike Walter (Jul 24, 2019) Petitioner(s) or Agent or Attorney Address: 3333 South Wadsworth Blvd. Suite 105 Lakewood, CO 80227 Telephone: 7209625750 Docket Number R2569403 Stip-1.Frm (Assistant) County Attorney for Respondent, Weld County Board of Commissioners Address: 1150 "O" Street P.O. Box 758 Greeley, CO 80632 Telephone:(970) 336-7235 County Assessor Address: 1400 N.17th Avenue Greeley, CO 80631 Telephone: (970) 400-3650 2 R2569403/Sears Final Audit Report 2019-07-25 Created: 2019-07-24 By: Courtney Anaya (canaya@co.weld.co.us) Status: Signed Transaction ID: CBJCHBCAABAAmht_8FpMpNYVtgHWhkKCK6u9YaCYM-x6 "R2569403/Sears" History n Document created by Courtney Anaya (canaya@co.weld.co.us) 2019-07-24 - 8:59:15 PM GMT- IP address: 204.133.39.9 Document emailed to Courtney Anaya (canaya@co.weld.co.us) for approval 2019-07-24 - 8:59:16 PM GMT A) Document approved by Courtney Anaya (canaya@co.weld.co.us) Approval Date: 2019-07-24 - 8:59:28 PM GMT - Time Source: server- IP address: 204.133.39.9 L? Document emailed to Susan Gundry (sgundry@weldgov.com) for approval 2019-07-24 - 8:59:29 PM GMT 'n Email viewed by Susan Gundry (sgundry@weldgov.com) 2019-07-24 - 9:10:57 PM GMT- IP address: 204.133.39.9 �r�, Document approved by Susan Gundry (sgundry@weldgov.com) Approval Date: 2019-07-24 - 9:15:01 PM GMT - Time Source: server- IP address: 204.133.39.9 12. Document emailed to Brenda Dones (bdones@co.weld.co.us) for signature 2019-07-24 - 9:15:03 PM GMT to Email viewed by Brenda Dones (bdones@co.weld.co.us) 2019-07-24 - 9:29:36 PM GMT- IP address: 204.133.39.9 A) Document e -signed by Brenda Dones (bdones@co.weld.co.us) Signature Date: 2019-07-24 - 9:33:10 PM GMT - Time Source: server- IP address: 204.133.39.9 �w Document emailed to Mike Walter (mwalter@1stnetre.com) for signature 2019-07-24 - 9:33:11 PM GMT Email viewed by Mike Walter (mwalter@1stnetre.com) 2019-07-24 - 9:43:56 PM GMT- IP address: 173.14.13.241 Adobe Sign .do, Document e -signed by Mike Walter (mwalter@lstnetre.com) Signature Date: 2019-07-24 - 9:47:02 PM GMT - Time Source: server- IP address: 173.14.13.241 [ Document emailed to Karin McDougal (weld-cboe@weldgov.com) for signature 2019-07-24 - 9:47:04 PM GMT 1 Email viewed by Karin McDougal (weld-cboe@weldgov.com) 2019-07-24 - 9:48:21 PM GMT- IP address: 204.133.39.9 ( Document e -signed by Karin McDougal (weld-cboe@weldgov.com) Signature Date: 2019-07-25 - 2:47:09 AM GMT - Time Source: server- IP address: 204.133.39.9 Signed document emailed to Mike Walter (mwalter@lstnetre.com), canaya@weldgov.com, Susan Gundry (sgundry@weldgov.com), Courtney Anaya (canaya@co.weld.co.us), and 2 more 2019-07-25 - 2:47:09 AM GMT Adobe Sign NOTICE OF DETERMINATION COMMERCIAL R2569403 2019 Brenda Dones Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 Date of Notice: 6/25/2019 Telephone: (970) 400-3650 Fax: (970) 304-6433 , Office Hours: 8:00AM - 5:00PM TAX AREA 0437 SEARS HAL MARSHALL REVOCABLE TRUST 1131 EMERALD BAY LAGUNA BEACH, CA 92651-1261 a. WIN WAG L2 WINDSOR ASSEMBLY OF GOD 1490 MAIN ST WINDSOR FICATIO ASSESSOR'S VALUATION 1/AL ... REVIEW 2,391,386 TUAL VALUE AF REVIEW 1,586,333 TOTAL 2,391,386 1,586,333 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: CM03 - After review of your property, we have made adjustments. This was done because of additional information obtained, or provided through the appeal process. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing real property appeals is July 15. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): 1ST NET REAL ESTATE SERVICES, INC 3333 S WADSWORTH BLVD UNIT 200 LAKEWOOD, CO 80227-5170 2019-2984 15-DPT-AR PR 207-08/13 R2569403 ASo1 o3 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 25th through August 5th at 1150 O Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, file online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 Online: www.co.weld.co.us/appsl/cboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 15 for real property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 10, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 1313 Sherman Street, Room 315 Contact the District Court in the County Denver, CO 80203 where the property is located. See your (303) 866-5880 local telephone book for the address and www.dola.colorado.qov/baa telephone number. Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2018? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $ .900, OOO What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraisal, etc.) MAILKct Lcc4PS (iiicwbb.)6 %7(-6 S"oBJre,- c.l4SE) lctai.,t l,Auuc, i 14Av6 gee pleettl.06S A3jankti eco.47 r of Jo Of .2S, (P yo) CAS A v®r8 1*4r A F 77h S 14tA2,,Jc . l pie s„sic ER,, Lg Af'f'ittC1Ari iT. ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. Signature fli ge IJALTrf_ 96 a-57.50 Telephone Number /%l/,J4Z7E, c Sr,J .1RE- Email Address 'Attach letter of authorization signed by property owner. -.7 /19 Date 15-DPT-AR PR 207-08/13 R2569403 1st Net Real Estate Services, Inc. 3333 S. Wadsworth Blvd. Suite 105 Lakewood CO 80227 Phone:720-962-5750 Fax:720-962-5760 LETTER OF AUTHORITY To Whom It May Concern: I, HAL MARSHALL SEARS REVOCABLE TRUST , am the owner, and/or agent of the owner, of the following real and/or business personal property: ADDRESS PARCEL/SCHEDULE NUMBER COUNTY 687 Horizon Drive 1490 Main Street R051111 R2569403 Mesa Weld I do hereby authorize 1st Net Real Estate Services, Inc. to represent my interests and to appear on my behalf before County Assessor, County Board of Equalization, Board of County Commissioners, the Colorado Board of Assessment Appeals, binding arbitration, District Court, all Colorado state courts, and/or any other agency or entity with regard to any and all matter(s) concerning the valuation and taxation of the above mentioned property(s) for tax years 2019, 2020, and any or all previous years as allowed by Colorado law. The undersigned requests that copies of all decisions from any of the above entities, or any other agency or entity, as is involved pertaining to matters of valuation and/or taxation for the above -mentioned property(s), be mailed to: 1st Net Real Estate Services, Inc. 3333 South Wadsworth Blvd. Suite 105 Lakewood, CO 80227 Phone: (720) 962-5750 Fax: (720) 962-5760 I hereby expressly revoke any and all previous authorizations relating to the Property(s). Dated this /J Signed, Si nature: Print Name: Hal Sears day of /1,1 477 20 O. Title: Trustee Address: 1131 Emerald Bay City, State, Zip: Laguna Beach, CA 92651 Phone: 949-230-0938 Fax #: STATE OF ) ) SS COUNTY OF ) Sworn to and subscribed before me this day of , 20 by Witness my hand and official seal. My Commission expires Notary Public Address California Jurat Certificate A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ()fa 1'1C S.S. Subscribed and sworn to (or affirmed) before me on this i h day of 2019,by FA a 1 k cx./v .s h 1 \ S- k. v s Name of Signer (1) t 16nth proved to me on the basis of Name of Signer (2) satisfactory evidence to be the person(s) who appeared before me. Signature of Notary Public For other required information (Notary Name,7bmmission No. etc.) lir v.4 K. PIERCE COMM...2287155 n NOTARY PUBLIC•CALIFORNIA - ORANGE COUNTY GJ My Term Exp. Mey2,2123 Seal and OPTIONAL INFORMATION Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this jurat to an unauthorized document and may prove useful to persons relying on the attached document. Description of Attached Document The certificate is attached to a document titled/for the purpose of containing pages, and dated thy. Method of Affiant Identification Proved to me on the basis of satisfactory evidence: Q form(s) of identification O credible witness(es) Notarial event is detailed in notary journal on: Page # Entry # Notary contact: Other Affiant(s) Thumbprint(s) Ill Describe: 1:29 PM 07/09/19 Accrual Basis HMS 2011 Class QuickReport Windsor - Paint Store Expenses 2017 All Transactions Type Date Num Name Memo Amount Bill 03/08/2017 Hauser Architects Benjamine Moore Paint- Windsor - Invoice#4005 -3,351.20 Bill 04/01/2017 Hauser Architects Benjamine Moore Paint- Windsor - Invoice#4134 -252.50 Bill 05/24/2017 R & L Builders LLC Landlord work - Windsor Paint Store INV#1 on 4/9/17 -71,661.13 Bill 05/24/2017 R & L Builders LLC Landlord work - Windsor Paint Store INV#2 on 5/23/17 -18,906.35 Bill 06/14/2017 LC Real Estate Group Lease Comm. - Windsor Paint Store -9,466.80 Bill Property Taxes • Windsor Paint Store -18,538.98 Bill Building Insurace Windsor Paint Store -2,305.90 Total Windsor - Paint Store -124,482.86 TOTAL -124,482.86 Windsor - Paint Store Expenses 2018 Bill Bill ""2017 Rent Received - $15,766.02 Property Taxes Building Insurance Windsor Paint Store Windsor Paint Store -22,028.92 -2156.24 Total -24,185.56 *** 2018 Rent received - $31,532.04 Page 1 of 1 LEASE AGREEMENT THIS LEASE AGREEMENT ("this Lease") is made and entered into this Z 7 day of September, 2016, by and between HAL MARSHALL SEARS REVOCABLE TRUST ("Landlord"), and NOCO PAINT A DESIGN, LLC.-d/Lid 'Benjamin -Moore ("Tenant") . In consideration of the covenants, terms, conditions, agreements, and payments as herein set forth, Landlord and Tenant hereby enter into this Lease: 1. Definitions. Whenever the following words or phrases are used in this Lease, said words or phrases shall have the following meanings: A. "Area" shall mean the parcel of land which is legally described on Exhibit "A" attached hereto and incorporated herein by reference, the street address of which is 1490 Main Street, Windsor, Colorado 80550. The Area includes the "Building," the "Common Areas," and the "Leased Premises," all as hereinafter defined. B. "Building" shall mean the existing building located in the Area, consisting of approximately seven thousand nine hundred eleven (7,911) leasable square feet (the square footage is approximate and is not guaranteed by Landlord). C. "Common Areas" shall mean all entrances, exits, driveways, curbs, walkways, hallways, malls, parking areas, landscaped areas, restrooms, loading and service areas, and like areas or facilities which are located in the Area and which are designated by Landlord as areas or facilities available for the non-exclusive use in common by persons designated by Landlord. D. "Leased Premises" and "Premises" shall mean the premises herein leased to Tenant by Landlord. E. "Tenant's Prorata Share" shall mean an amount (expressed asa percentage) equal to the number of square feet included in the Leased Premises divided by the total number of leasable square feet included in the Building. Tenant's Prorata Share is agreed to be thirty-two and 56/100 percent (32.56%). 2. Leased Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the following -described premises: The space located at 1490 Main Street, Windsor, Colorado 80550, consisting of approximately two thousand five hundred seventy-six (2,576) square feet (the square footage is approximate and is not guaranteed by Landlord), together with the shared use of the Common Areas. 3. Term. A. Lease Term. The term of this Lease (the "Lease Term") shall commence sixty days (60) after the Premises is delivered by Landlord with all Landlord work completed or the first day Tenant is open for business to public, whichever occurs sooner (the "Commencement Date") and, unless sooner terminated or extended as herein provided, shall end at 5 o'clock p.m. (Colorado time) sixty two (62) months thereafter. B. Options to Extend. Provided Tenant is not then in default beyond the expiration of any applicable period for cure under the Lease, Tenant shall have the option to extend the Lease Term (each, an "Extension Option") for two (2) periods (the "Option Term") of five (5) additional years each (i.e., such Option Term commencing immediately following the expiration of the applicable Lease Term). In order to exercise each Extension Option, Tenant shall give written notice of such exercise to Landlord at least one hundred eighty (180) days prior to the expiration of the then current Lease Term. Upon the proper exercise of an Extension Option, the Lease shall be automatically extended for the applicable additional five (5) year Option Term without the necessity of executing any extension or renewal agreement. Base Annual Rent during the Option Terms shall be as set forth in paragraph 4.A hereinafter. Notwithstanding the foregoing, any Extension Option for an Option Term which has not commenced shall be void and of no force or effect if Tenant is then in default hereunder beyond the expiration of any applicable period for cure under the Lease either as of the date of Tenant's exercise of said option or as of the date of thecommencement of the applicable Option Term. 4. Rent. During the Lease Term (except for the Free Rent Period), Tenant agrees to pay to Landlord "Base Annual Rent" and "Additional Rent," both as hereinafter defined. Base Annual Rent and Additional Rent (jointly "Rent") shall be paid to Landlord without demand or notice, without deduction or offset, in lawful money of the United States of America at Landlord's address, or to such other person or to such other place as Landlord may, from time to time, designate in writing. "Additional Rent" shall mean any amounts which this Lease requires Tenant to pay in addition to Base Annual Rent, including, without limitation, amounts required by paragraphs 11, 12, 13, 15, and 16 of this Lease. Unless otherwise instructed by - 2 44. Landlord, all checks in payment of Rent shall be payable to Hal Marshall Sears Revocable Trust, the address of which is 1131 Emerald Bay, Laguna Beach, CA 92651-1261. A. Base Annual Rent. "Base Annual Rent" shall be paid to Landlord in monthly installments ("Base Monthly Rent") and shall be in an amount equal to one -twelfth of Base Annual Rent. Installments of Base Monthly Rent shall be due and payable in advance on or before the first day of each calendar month of the Lease Term. If the Lease Term commences on a date other than the first day of a calendar month or ends on a date other than the last day of a calendar month, then Base Monthly Rent shall be appropriately prorated by Landlord for such month. Except as otherwise provided in paragraph 48 hereinafter, Base Monthly Rent during the initial sixty two (62) month Lease Term shall be as follows: Lease Year Months 1-2 Thereafter; sq.ft.) sq.ft.) sq.ft.) sq.ft.) sq.ft.) paragraph paragraph paid for follows: 1 2 3 4 5 Base Annual Rent Base Monthly Rent No Base Rent Due $31,556.00 $31,556.00 $31,556.00 $31,556.00 $31,556.00 $2,629.67 ($12.25 per $2,629.67 ($12.25 per $2,629.67 ($12.25 per $2,629.67 ($12.25 per $2,629.67 ($12.25 per If Tenant exercises the Extension Option(s) as provided in 3.B hereinabove, and except as otherwise provided in 48 hereinafter, Base Annual Rent and Base Monthly Rent to be each Lease Year during the Option Term(s) shall be as - 3 Lease Year Extension Option #1 6 sq.ft.) sq.ft.) sq.ft.) sq.ft.) sq.ft.) 7 8 9 10 Extension Option #2 sq.ft.) sq.ft.) sq.ft.) sq.ft.) sq.ft.) 11 12 13 14 15 Base Annual Rent $34,711.60 $34,711.60 $34,711.60 $34,711.60 $34,711.60 Base Monthly Rent $2,892.63 ($13.48 per $2,892.63 ($13.48 per $2,892.63 ($13.48 per $2,892.63 ($13.48 per $2,892.63 ($13.48 per $38,176.32 $3,181.36 ($14.82 per $38,176.32 $3,181.36 ($14.82 per $38,176.32 $3,181.36 ($14.82 per $38,176.32 $3,181.36 ($14.82 per $38,176.32 $3,181.36 ($14.82 per B. Lease Year. "Lease Year" shall mean a period of twelve (12) consecutive full calendar months, with the first Lease Year commencing on the Commencement Date and each succeeding Lease Year upon the anniversary date of the first Lease Year. The Lease Year may change if Tenant exercises the "Expansion Option" provided for in paragraph 48 hereinafter. 4 C. Total Net Lease. Tenant understands and agrees that except as otherwise expressly provided, this Lease is a total net Lease (a "net, net, net lease"), whereby Tenant has the obligation to reimburse Landlord for a share of all costs and expenses (real estate taxes, insurance, trash removal, Common Area operation and maintenance, and like costs and expenses) incurred by Landlord as a result of Landlord's ownership and operation of the Area and the Building. 5. Security Deposit. Upon the execution of this Lease, Tenant shall pay to Landlord the sum of Three Thousand Four Hundred Dollars ($3,400.00), as security for Tenant's payment of Rent and performance of the other terms and conditions of this Lease. Landlord may deduct from such amount for the reasonable cost of repairs to the Leased Premises (ordinary wear and tear excepted), for any Rent delinquent under the terms hereof, and for any sum advanced by Landlord to cure any default of Tenant hereunder. If deductions occur, Tenant shall, within fifteen (15) days after notice from Landlord, redeposit with Landlord such amounts so expended so as to maintain the deposit in its original amount. Failure to so redeposit shall be deemed a failure to pay Rent under the terms hereof. Nothing herein contained shall limit the liability of Tenant as to any damage to the Leased Premises, and Tenant shall be responsible for the total amount of any damage and/or loss occasioned by actions of Tenant. Should Tenant faithfully and fully comply with all of the terms and provisions of this Lease, the security deposit or any balance thereof shall be returned to Tenant or, at the option of Landlord, to the last assignee of Tenant's interest in the Leased Premises, within sixty (60) days after the expiration of the Lease Term. Landlord shall deliver the security deposit to any purchaser of Landlord's interest in the Leased Premises; and, upon giving notice to Tenant of such transfer, Landlord shall be discharged from further liability with respect to the security deposit. The security deposit shall not be deemed to be liquidated damages; and if the claims of Landlord exceed the security deposit, Tenant shall remain liable for the balance of any such claim. Landlord shall not be required to pay Tenant any interest on said deposit and may commingle said deposit with other funds of Landlord. 6. Use of Leased Premises. Tenant shall use the Leased Premises only for wholesale and retail sale of paint, architectural coatings, paint products, window treatments, wall coverings, floor coverings, home decorating furnishings, supplies and associated products and services, and for no other purpose whatsoever except with the written consent of Landlord. Tenant shall not allow any accumulation of trash or debris on the Leased Premises or within any portion of the Area. All receiving and delivery of goods and merchandise and all removal of garbage and refuge shall be made only - 5 S0cee55,0 r Qw/ecs a(»rJ by way of the rear and/or other service door provided therefor. In the event the Leased Premises shall have no such door, then these matters shall be handled in a manner satisfactory to Landlord. No storage of any material outside of the Leased Premises shall be allowed unless first approved by Landlord in writing, and then in only such areas as are designated by Landlord. Tenant shall not commit or suffer any waste on the Leased Premises nor shall Tenant permit any nuisance to be maintained on the Leased Premises or permit any disorderly conduct or other activity having a tendency to annoy or disturb any occupants of any part of the Area and/or any adjoining property. 7. Laws and Regulations - Tenant Responsibility. Tenant shall, at its sole cost and expense, comply with all laws and regulations of any governmental entity, board, commission, or agency having jurisdiction over the Leased Premises. Tenant agrees not to install any electrical equipment that overloads any electrical paneling, circuitry, or wiring and further agrees to comply with the requirements of the insurance underwriter or any governmental authorities having jurisdiction thereof. 8. Landlord's Rules and Regulations. Landlord reserves the right to adopt and promulgate reasonable rules and regulations applicable to the Leased Premises and from time to time amend or supplement said rules or regulations. Notice of such rules and regulations and amendments and supplements thereto shall be given to Tenant, and Tenant agrees to comply with and observe such rules and regulations and amendments and supplements thereto provided that the same apply uniformly to all the tenants of Landlord in the Area. 9. Parking. Landlord will provide off-street parking for the common use of the tenants, employees, and customers of the Area. Landlord makes no representations or warranties regarding the quantity or adequacy of parking spaces, however, Landlord shall make best efforts to ensure that the employees and customers of the adjoining tire store (or any other business that shall occupy the building) do not park in the nine (9) parking spaces located directly in front of the Premises. Tenant shall park all vehicles of whatever type used by Tenant do or Tenant's employees only in such areas thereof as are reasonably designated by Landlord for this purpose, and Tenant accepts the responsibility of seeing that Tenant's employees park only in the areas so designated. Tenant shall, upon the request of Landlord, provide to Landlord license numbers of Tenant's vehicles and the vehicles of Tenant's employees. 10. Control gf Common Areas - Exclusive Control of Landlord. All Common Areas shall at all times be subject to the exclusive control - 6 - and management of Landlord, notwithstanding that Tenant and/or Tenant's employees and/or customers may have a non-exclusive right to the use thereof. Landlord shall have the right from time to time to establish, modify, and enforce reasonable rules and regulations with respect to the use of said facilities and Common Areas. 11. Taxes. A. Real Property Taxes and Assessments. Tenant shall pay to Landlord on the first day of each month, as Additional Rent, Tenant's Prorata Share of all real estate taxes levied and assessed against the Building and the Area. If the first and last years of the Lease Term are not calendar years, the obligations of Tenant hereunder shall be prorated for the number of days during the calendar year that this Lease is in effect. The monthly payments shall be based upon one -twelfth (1/12) of Tenant's Prorata Share of either (i) the prior year's taxes and assessments, or (ii) Landlord's good faith estimate of the taxes for the current year. Once each year Landlord shall determine the actual amount of Tenant's Prorata Share of taxes and assessments for the prior year; and if Tenant has paid less than Tenant's Prorata Share for the prior year, Tenant shall pay the deficiency to Landlord with the next payment of Base Annual Rent; or if Tenant has paid in excess of Tenant's Prorata Share for the prior year, Landlord shall forthwith refund said excess to Tenant. B. Personal Property Taxes. Tenant shall be responsible for, and shall pay promp assessments levied and/or equipment, and items of a or about the Leased Premises by Tenant. tly when due, any and all taxes and/or assessed against any furniture, fixtures, similar nature installed and/or located in C. Rent Tax. If a special tax, charge, or assessment is imposed or levied upon the rents paid or payable hereunder or upon the right of Landlord to receive rents hereunder (other than to the extent that such rents are included as a part of Landlord's income for the purpose of an income tax), Tenant shall reimburse Landlord for the amount of such tax within fifteen (15) days after demand therefor is made upon Tenant by Landlord. D. Other Taxes, Fees and Charges. Tenant shall pay to Landlord, on the first day of each month, as Additional Rent, Tenant's Prorata Share of any "Other Charges" (as hereinafter defined) levied, assessed, charged, or imposed against the Area, as a whole. Unless paid directly by Tenant to the authority levying, assessing, charging, or imposing same, Tenant shall also pay to Landlord, on the first day of the month following payment of same by Landlord, the entire costs of any such "Other Charges" levied, assessed, charged, or imposed - 7 against the Leased Premises, Tenant's use of same, or Tenant's conduct of business thereon. For purposes of this provision, "Other Charges" shall mean and refer to any and all taxes, assessments, impositions, user fees, impact fees, utility fees, transportation fees, infrastructure fees, system fees, license fees, and any other charge or assessment imposed by any governmental authority or applicable subdivision on the Area, the Leased Premises, or the ownership or use of the Area or the Leased Premises, or the business conducted thereon, whether or not formally denominated as a tax, assessment, charge, or other nominal description, whether now in effect or hereafter enacted or imposed (excluding, however, Landlord's income taxes). Landlord shall pay in installments all taxes and assessments that are payable in installments. E. Tax Protest. Should Landlord protest and win a reduction in the real estate taxes for the Building and the Area, Tenant shall be obligated to pay Tenant's Prorata Share of the cost of such protest, if the protest is handled by a party other than the Landlord. 12. Insurance. A. Landlord's Insurance. Landlord shall procure and maintain such fire and casualty, loss of rents, and liability insurance as it, from time to time, deems proper and appropriate in reference to the Building in which the Leased Premises are located and the Common Areas. Such insurance shall not be required to cover any of Tenant's property, and Tenant shall have no interest in any of the proceeds of such insurance. Tenant shall pay Landlord, as Additional Rent, Tenant's Prorata Share of the insurance carried by Landlord pursuant to this Lease. Payment shall be made on the first day of each month as Additional Rent. B. Tenant's Insurance. Tenant shall, at its sole cost and expense, insure on a full replacement cost basis Tenant's inventory, fixtures, leasehold improvements, and betterments located on the Leased Premises against loss resulting from fire or other casualty. Tenant shall procure, pay for, and maintain comprehensive public liability insurance providing coverage from and against any loss or damage occasioned by an accident or casualty on, about, or adjacent to the Leased Premises. Said liability policy shall be written on an "occurrence basis," with limits of not less than One Million Dollars ($1,000,000.00) bodily injury liability coverage and Five Hundred Thousand Dollars ($500,0:00.00) property damage liability coverage. - 8 - All policies of insurance required to be carried by Tenant hereunder shall be written by an insurance company licensed to do business in the State of Colorado, and shall name Landlord as an additional insured and/or loss payee, as Landlord may direct. Prior to occupancy of the Leased Premises by Tenant, and within thirty (30) days after the expiration of the term of each such policy, Tenant shall furnish Landlord with evidence reasonably satisfactory to Landlord of Tenant's required insurance coverage. With respect to property insurance, the evidence of insurance shall consist of an Acord 27 (not Acord 25) Certificate, or such other evidence as Landlord may reasonably require. All such policies maintained by Tenant shall provide that they may not be terminated or amended except after thirty (30) days' prior written notice to Landlord (except that only ten [10] days' prior written notice shall be required in the event of cancellation for non-payment of premiums). No insurance required to be maintained by this paragraph 12 shall be subject to deductible amounts in excess of then commercially reasonable deductible amounts without Landlord's prior written consent. Any insurance required to be maintained by Tenant under this Lease may be satisfied by blanket, umbrella and/or excess liability insurance, covering additional items or locations or insureds, so long as the coverage afforded (including, without limitation, coverage as to additional insureds) will not be materially reduced or materially diminished by reason of the use of such blanket, umbrella, and/or excess liability policy of insurance. C. Mutual Subrogation Waiver. Landlord and Tenant hereby grant to each other, on behalf of any insurer providing fire and extended coverage to either of them covering the Leased Premises, the Building, or other improvements thereon or contents thereof a waiver of any right of subrogation any such insurer of one party may acquire against the other or as against Landlord or Tenant by virtue of payments of any loss under such insurance. Such a waiver shall be effective so long as Landlord and Tenant are empowered to grant such waiver under the terms of their respective insurance policy or policies and such waiver shall stand mutually terminated as of the date either Landlord or Tenant gives notice to the other that the power to grant such waiver has been so terminated. 13. Utilities. Tenant shall be solely responsible for and promptly pay all charges and expenses for heat, water, gas, electric, sewer service, and any other utility services used or consumed within the Leased Premises (including telephone, internet, or other communication services used or consumed by Tenant). Subject as hereinafter provided, Tenant shall arrange with all appropriate utility companies to pay all utilities used within the Leased Premises and to have the same billed to Tenant at the address designated by - 9 - 4 Tenant. In no event shall Landlord be liable for any interruption or failure in the supply of any such utilities to the Leased Premises. If any utility company serving the Leased Premises determines that an additional service fee, impact fee and/or assessment, or any other type of payment or penalty is necessary due to Tenant's use and occupancy of the Building, nature of operation, and/or consumption of utilities, said expense shall be borne solely by Tenant. Said expense shall be paid promptly, and any repairs requested by the utility company shall be performed by. Tenant immediately and without any delay. Tenant expressly acknowledges that certain utilities serving the Leased Premises are on joint meters, and shall be billed to Tenant on a proportionate basis as follows: (i) If all tenants within the Building using utilities measured by a joint meter have comparable usage, Tenant's share shall be the portion of the charge of such utilities equal to the ratio of the square feet of floor area of the Leased Premises (i.e., two thousand five hundred seventy-six [2,576]) to the total square feet of floor area served by the joint meter; or (ii) If usage is not comparable, Tenant's share shall be such equitable proportion as Landlord shall reasonably determine. Notwithstanding the preceding sentence, Tenant agrees that Landlord may, at Landlord's option, submeter the Leased Premises to measure Tenant's actual consumption of utilities, in which case Tenant shall pay for its utility usage based on actual submeter readings. Landlord shall not charge Tenant a rate for any utilities in excess of the rate Landlord pays the supplier of the service. Tenant's share of any such utilities shall be paid within ten (10) days after notice from Landlord of the amount of the same. 14. Maintenance and Pre -Occupancy Work Obligations gf Landlord. Except as herein specifically provided for, Landlord shall keep and maintain in good condition (i) the roof, foundation, and exterior of the Building, (ii) the parking lot and grounds lighting, and (iii) plumbing and electrical defects or malfunctions, and (iv) sprinkler systems at the Shopping Center and Premises. If required by any governmental authority, Landlord shall be responsible, at its sole cost and expense, for compliance with the Americans with Disabilities Act ("ADA") for the Shopping Center and its common areas. Tenant shall be responsible for Tenant's Prorata Share of such costs and expenses. Tenant shall be solely responsible for any damage to the roof, foundation, external walls, and parking area caused by Tenant's actions, negligence, or fault. - 10 - Additionally, Landlord at its expense shall perform and satisfactorily complete the work set forth on Exhibit B, as soon as practicable after the Commencement Date, but expected to be no later than four (4) months after the Commencement Date. 15. Maintenance Obligations of Tenant. Subject only to the maintenance obligations of Landlord as herein provided for, Tenant shall, during the entire Lease Term, including all extensions thereof, at Tenant's sole cost and expense, keep and maintain the Leased Premises in good condition and repair, including specifically the following: A. Heating and Air Conditioning Systems. Tenant shall be responsible for the quarterly maintenance and repairs of the HVAC as necessary. The HVAC units shall be new as part of the Landlord work (See Exhibit B) and Landlord agrees to assign any warranties related thereto to the Tenant. B. Electrical Systems. Tenant agrees to maintain in good working order and to make all required repairs and replacements to the electrical systems for the Leased Premises. Tenant, upon signing this Lease, acknowledges that Tenant has inspected the existing electrical systems and all such systems are in good repair and working order. C. Plumbing Systems. Tenant agrees to maintain in good working order and to make all required repairs or replacements to the plumbing systems for the Leased Premises. Tenant, upon signing this Lease, acknowledges that Tenant has inspected the existing plumbing systems and all such systems are in good repair and working order. D. Tenant's Responsibility for Building and Area Repairs. Tenant shall be responsible for any repairs required for any part of the Building or the Area of which the Leased Premises are a part if such repairs are necessitated by the actions or inactions of Tenant other than normal wear and tear. E. Cutting Roof. Tenant must obtain in writing Landlord's approval to making any roof penetrations. Failure by Tenant to obtain written permission to penetrate a roof shall relieve Landlord of any roof repair obligations as set forth in paragraph 14 hereinabove. Tenant further agrees to repair, at its sole cost and expense, all roof penetrations made by Tenant and to use, if so requested by Landlord, a licensed contractor selected by Landlord to make such penetrations and repairs. F. Glass and Doors. The repair and replacement of all glass and doors on the Leased Premises shall be the responsibility of Landlord, unless the breakage is caused by Tenant's negligence or that of its customers or employees. Any such replacements or repairs shall be promptly completed at the expense of Tenant. G. Liability for Overload. Tenant shall be responsible for the repair or replacement of any damage to the Leased Premises, the Building, or the Area which results from Tenant's movement of heavy articles therein or thereon. Tenant shall not overload the floors of any part of the Leased Premises. H. Failure of Tenant to Maintain Premises. Should Tenant neglect to keep and maintain the Leased Premises as required herein, Landlord shall have the right, but not the obligation, to have the work done, and any reasonable costs plus a ten percent (10%) overhead charge therefor shall be charged to Tenant as Additional Rent and shall become payable by Tenant with the payment of the rental next due. I. Return of Leased Premises. The Leased Premises shall, upon the termination of this Lease by virtue of the expiration of the Lease Term or otherwise, be returned to Landlord by Tenant in as good or better condition than when entered upon by Tenant, ordinary wear and tear excepted. 16. Common Area Maintenance. Tenant shall be responsible for Tenant's Prorate Share of the total costs reasonably incurred for the operation, maintenance, and repair of the Common Areas, including, but not limited to, reasonable costs for outside management services; janitorial services; maintenance and repair of exterior signs and any tenant directories; irrigation systems; the costs and expenses incurred for the operation, maintenance, and repair of parking areas (including restriping and repaving), loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, and landscape areas; removal of snow; utilities for common lighting and signs; insurance; security to protect and secure the Area; all common utilities, including water to maintain landscaping; replanting in order to maintain a smart appearance of landscape areas; supplies; depreciation on the machinery and equipment used in such operation, maintenance, and repair; the cost of personnel to implement such services; and ten percent (10%) of all such operational, maintenance, and repair costs to cover Landlord's overhead and supervision expenses ("Landlord's Overhead Expenses") provided that Tenant shall not be liable, in any year of the Lease Term or any extension thereof, for any increase in controllable operating expenses (which shall expressly exclude property taxes, insurance, utilities and snow/ice removal) greater than five (5) percent over those of the previous year. These costs shall be estimated on an annual basis by Landlord and shall be - 12 - adjusted upwards or downwards depending on the actual costs for the preceding twelve (12) months. Tenant shall pay monthly, commencing after the Free Rent Period, as Additional Rent due under the terms hereof, a sum equal to Tenant's Prorata Share of the estimated costs for said twelve (12) month period divided by twelve (12). Once each year Landlord shall determine the actual costs of the foregoing expenses for the prior year; and if the actual costs are greater than the estimated costs, Tenant shall pay its Tenant's Prorata Share of the difference between the estimated costs and the actual costs to Landlord with the next installment of Base Monthly Rent; or if the actual costs are less than the estimated costs, Landlord shall credit the amount of Tenant's excess payment against Base Monthly Rent which next thereafter becomes due. Landlord's Overhead Expenses shall not be applicable to Landlord's expenses for real property taxes, insurance, and Common Area electricity expenses. 17. Inspection and Right of Entry to Leased Premises - Regular, Emergency, Reletting. Landlord and/or Landlord's agents and employees shall have the right, upon 48 hours advance written notice (except in the event of an emergency which shall not require advance written notice) to enter the Leased Premises at all times during regular business hours and, at all times during emergencies, to examine the Leased Premises, to make such repairs, alterations, improvements, or additions as Landlord deems necessary, and Landlord shall be allowed to take all materials into and upon the Leased Premises that may be required therefor without the same constituting an eviction of Tenant in whole or in part, and the rent reserved shall in no way abate while such repairs, alterations, improvements, or additions are being made, by reason of loss or interruption of business of Tenant or otherwise. During the six (6) months prior to the expiration of the Lease Term or any renewal thereof, Landlord may exhibit the Leased Premises to prospective tenants and/or purchasers and may place upon the Leased Premises the usual notices indicating that the Leased Premises are for lease and/or sale. 18. Alteration - Changes and Additions - Responsibility. Unless Landlord's approval (which shall not be unreasonably withheld) is first secured in writing, Tenant shall not install or erect inside partitions, add to existing electric power service, add telephone outlets, add light fixtures, install additional heating and/or air conditioning, or make any other changes or alterations to the interior or exterior of the Leased Premises. Any such changes or alterations shall be made at the sole cost and expense of Tenant. At the end of this Lease, all such fixtures, equipment, additions, changes, and/or alterations (except trade fixtures installed by Tenant) shall be and remain the property of Landlord; provided, however, Landlord shall have the option to require Tenant to remove any or all such fixtures, - 13 - equipment, additions, and/or alterations and restore the Leased Premises to the condition existing immediately prior to such change and/or installation, normal wear and tear excepted, all at Tenant's cost and expense. All such work shall be done in a good and workmanlike manner and shall consist of new materials unless agreed to otherwise by Landlord. Any and all repairs, changes, and/or modifications thereto shall be the responsibility of Tenant, at the sole cost of Tenant. Landlord may require adequate security from Tenant assuring no mechanic's liens on account of work done on the Leased Premises by Tenant and may post the Leased Premises, or take such other action as is then permitted by law, to protect Landlord and the Leased Premises against mechanic's liens. Landlord may also require adequate security to assure Landlord that the Leased Premises will be restored to its original condition upon termination of this Lease. 19. Sign Approval. Except for signs which are located inside of the Leased Premises and which are not attached to any part of the Leased Premises, Landlord must approve in writing any sign to be placed in or on the interior or exterior of the Leased Premises, regardless of size or value. Such approval shall not be unreasonably withheld. Tenant shall have the right to install its standard sign on approximately j -t..... L..IL (1/2•)- of the multi -tenant pylon on the property. Landlord shall allow Tenant to trim up and slide the tire store signage to the top of the monument sign enabling Tenant to occupy the bottom one third (1/3) to one half (1/2) of the sign at Tenant's cost and expense and subject to Landlord's review and approval of such plan from Tenant's signage contractor prior to installation. Signs attached to windows of the Leased Premises must be so approved by Landlord. As a condition to the granting of such approval, Landlord shall have the right to require Tenant to furnish a bond or other security acceptable to Landlord sufficient to insure completion of, and payment for, any such sign work to be so performed. Tenant shall, during the entire Lease Term, maintain Tenant's signs in a good condition and repair at its sole cost and expense. Tenant shall remove all signs at the termination of this Lease, at Tenant's sole risk and expense, and shall in a workmanlike manner properly repair any damage and close any holes caused by the installation and/or removal of Tenant's signs. Tenant shall give Landlord prior notice of such removal, and the representative of Landlord shall have the opportunity of being present when the signage is removed and shall pre -approve the manner and materials used to repair damage and close the holes caused by removal. 20. Right of Landlord to Make Changes and Additions. Landlord reserves the right at any time to make alterations or additions to the Building or the Area of which the Leased Premises are a part. - 14 - Landlord also reserves the right to construct other buildings and/or improvements in the Area and to make alterations or additions thereto, all as Landlord shall determine. Easements for light and air are not included in the leasing of the Leased Premises to Tenant. Landlord further reserves the exclusive right to the roof of the Building of which the Leased Premises are a part. Landlord also reserves the right at any time to relocate, vary, and adjust the size of any of the improvements or Common Areas located in the Area, provided, however, that all such changes shall be in compliance with the requirements of governmental authorities having jurisdiction over the Area. Nothing in this Paragraph 20 shall empower the Landlord to reduce the number of parking spaces in the Area without Tenant's prior written approval, which shall not be unreasonably withheld. 21. Damage or Destruction of Leased Premises. In the event the Leased Premises and/or the Building of which the Leased Premises are a part shall be totally destroyed by fire or other casualty or so badly damaged that in the opinion of Landlord it is not feasible to repair or rebuild same, Landlord shall have the right to terminate this Lease upon written notice to Tenant. If the Leased Premises are partially damaged by fire or other casualty, except if caused by Tenant's negligence, and said Leased Premises are not rendered untenantable thereby, an appropriate reduction of the rent shall be allowed for the unoccupied portion of the Leased Premises until repair thereof shall be substantially completed. If Landlord elects to exercise the right herein vested in it to terminate this Lease as a result of damage to or destruction of the Leased Premises or the Building in which the Leased Premises are located, said election shall be made by giving notice thereof to Tenant within thirty (30) days after the date of said damage or destruction. 22. Governmental Acquisition 2f Property. The parties agree that Landlord shall have complete freedom of negotiation and settlement of all matters pertaining to the acquisition of the Leased Premises, the Building, the Area, or any part thereof, by any governmental body or other person or entity via the exercise of the power of eminent domain, it being understood and agreed that any financial settlement made or compensation paid respecting said land or improvements to be so taken, whether resulting from negotiation and agreement or legal proceedings, shall be the exclusive property of Landlord, there being no sharing whatsoever between Landlord and Tenant of any sum so paid. In the event of any such taking, Landlord shall have the right to terminate this Lease on the date possession is delivered to the condemning person or authority. Such taking of the property shall not be a breach of this Lease by Landlord nor give rise to any claims in Tenant for damages or compensation from Landlord. Nothing herein contained shall be construed as depriving Tenant of the 15 right to retain as its sole property any compensation paid for any tangible personal property owned by Tenant which is taken in any such condemnation proceeding. 23. Assignment ex Subletting. Tenant shall have the right to assign this Lease or sublet the Leased Premises or any part hereof with the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed. No subletting if approved by Landlord shall relieve Tenant of any of its obligations hereunder, and the performance or nonperformance of any of the covenants herein contained by subtenants shall be considered as the performance or the nonperformance by Tenant; provided, however, that if an assignment is approved, Tenant shall have no further responsibility hereunder after the assignment is made.. 24. Warranty ef Title. Subject to the provisions of paragraphs 25, 26, and 27 hereof, Landlord covenants it has good right to lease the Leased Premises in the manner described herein and that Tenant shall peaceably and quietly have, hold, occupy, and enjoy the Leased Premises during the Lease Term. 25. Access. Landlord shall provide Tenant non-exclusive access to the Leased Premises through and across land and/or other improvements owned or leased by Landlord. Landlord shall have the right, during the Lease Term, to designate and to change such non-exclusive access, unless by doing so Tenant's business or the convenience of its customers or suppliers are materially affected in a negative way. 26. Subordination. Tenant agrees that this Lease shall be subordinate to any mortgages, trust deeds, or ground leases that may now exist or which may hereafter be placed upon the Leased Premises and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, replacements, and extensions thereof. Tenant shall execute and deliver any reasonable instruments may be required for the above purposes within ten (10) days after receipt of any such request by Landlord; or in failing to do so Tenant shall be considered to be in default under the Lease. Tenant shall in the event of the sale or assignment of Landlord's interest in the Area or in the Building, or in the event of any proceedings brought for the foreclosure of or in the event of exercise of the power of sale under any mortgage made by Landlord covering the Leased Premises, attorn to the purchaser and recognize such purchaser as Landlord under this Lease. 27. Easements. Landlord shall have the right to grant any easement on, over, under, and above the Area for such purposes as - 16 - Landlord determines, provided that such easements do not materially interfere with Tenant's occupancy and use of the Leased Premises. 28. Tenant's Bold Harmless And Indemnification Agreement. Tenant shall indemnify and hold Landlord harmless from and against any and all claims, losses, expenses, costs, judgments, and/or demands, including court costs and attorneys' fees, suffered or incurred by Landlord, arising from activities of Tenant in the Leased Premises or in the Building or in the Area and/or on account of any operation or action by Tenant and/or from and against all claim arising from any breach or default on the part of Tenant or any act of negligence of Tenant, its agents, contractors, servants, employees, licensees, or invitees. 29. Acts or Omissions Df Others. Landlord, or its employees or agents, or any of them, shall not be responsible or liable to Tenant or to Tenant's guest, invitees, employees, agents, or any other person or entity, for any loss or damage that may be caused by the acts or omissions of other tenants, their guests or invitees, occupying any other part of the Area or by persons who are trespassers on or in the Area, or for any loss or damage caused or resulting from the bursting, stoppage, backing up, or leaking of water, gas, electricity, or sewers or caused in any other manner whatsoever, unless such loss or damage is caused by or results from the negligent acts of Landlord, its agents or contractors. 30. Interest ggn fast DUR Obligations. Any amount due Landlord not paid when due shall bear interest at one and one-half percent (1.5%) per month from due date until paid. Payment of such interest shall not excuse or cure any default by Tenant under this Lease. 31. Late Charge. Landlord shall pay in addition to any amounts due under paragraph 30 above, a monthly collection service charge for any payment due to Landlord hereunder which is delinquent ten (10) days or longer, said charge being One Hundred Fifty Dollars ($150.00) or five percent (5%) of said payments, whichever sum shall be greater. 32. Administrative Charges. In the event any check, bank draft, or negotiable instrument given for any money payment hereunder shall be dishonored at any time and from time to time, for any reason whatsoever not attributable to Landlord, Landlord shall be entitled, in addition to any other remedy that may be available, (i) to make an administrative charge of One Hundred Fifty Dollars ($150.00) or three (3) times the face value of the check, bank draft, or negotiable instrument, whichever is smaller, and (ii) at Landlord's sole option, to require Tenant to make all future payments in cash or by cashier's check. 17 - 33. Holding Over Last Month's Rent. If Tenant shall remain in possession of the Leased Premises after the termination of this Lease, whether by expiration of the Lease Term or otherwise, without a written agreement as to such possession, then Tenant shall be deemed a month -to -month tenant. The rent rate during such holdover tenancy shall be an amount equal to one hundred fifty percent (150%) of the Base Monthly Rent paid for the last month of tenancy under this Lease, excluding any free rent concessions which may have been made for the last month of this Lease. No holding over by Tenant shall operate to renew or extend this Lease without the written consent of Landlord to such renewal or extension having been first obtained. Tenant shall indemnify Landlord against loss or liability resulting from the delay by Tenant in surrendering possession of the Leased Premises, including, without limitation, any claims made with regard to any succeeding occupancy bounded by such holdover period. 34. Modification gg Extensions. No modification or extension of this Lease shall be binding upon the parties hereto unless in writing and unless signed by the parties hereto. 35. Estoppel, Certificates. Within no more than ten (10) days after receipt of written request, Tenant shall furnish to Landlord a certificate, duly acknowledged, certifying, to the extent true: A. That this Lease is in full force and effect. B. That to the best of its knowledge, Tenant knows of no default hereunder on the part of Landlord or, if it has reason to believe that such a default exists, the nature thereof in reasonable detail. C. The amount of the Rent being paid and the last date to which Rent has been paid. D. That this Lease has not been modified or, if it has been modified, the terms and dates of such modifications. E. That the Lease Term has commenced. F. The commencement and expiration dates. G. Whether to the best of its knowledge, all work to be performed by Landlord has been completed. H. Whether the extension option has been exercised, if applicable. -18- 61), I Whether to the best of its knowledge, there exist any claims or deductions from, or defenses to, the payment of Rent. J. Such other matters as may be reasonably requested by Landlord: 36. Notice Procedure. All notices, demands, and requests which may or are required to be given by either party to the other shall be in writing and such that are to be given to Tenant shall be deemed to have been properly given if served on Tenant or an employee of Tenant or sent to Tenant by United States registered or certified mail, return receipt requested, properly sealed, stamped, and addressed to Tenant at NOCO Paint & Design LLC Attn: Garrett Farrar 235 Graham Lane Johnstown, CO 80534 Phone: (970) 691-1398 Email: farrari.biz@gmail.com With a copy to: Benjamin Moore Attn: Legal Department 101 Paragon Dr. Montvale, NJ 07645 or at such other place as Tenant may from time to time designate in a written notice to Landlord; and, such as are to be given to Landlord shall be deemed to have been properly given if personally served on Landlord or if sent to Landlord United States registered or certified mail, return receipt requested, properly sealed, stamped, and addressed to Landlord at 1131 Emerald Bay. Laguna Beach. C 92651-1261, or at such other place as Landlord may from time to time designate in a written notice to Tenant. Any notice given by mailing shall be effective as of the date of mailing. 37. Memorandum o€ Lease - Notice t2 Mortgagee. Landlord and Tenant agree not to place this Lease of record but, upon the request of either party, to execute and acknowledge so the same may be recorded a short form lease indicating the names and respective addresses of Landlord and Tenant, the Leased Premises, the Lease Term, the dates of the commencement and termination of the Lease Term and options for renewal, if any, but omitting rent and other terms of this Lease. Tenant agrees to an assignment by Landlord of rents and of Landlord's interest in this Lease to a mortgagee, if the same be made - 19 - by Landlord. Tenant further agrees, if requested to do so by Landlord, that it will give to said mortgagee a copy of any request for performance by Landlord or notice of default by Landlord; and in the event Landlord fails to cure such default, Tenant will give such mortgagee a thirty (30) day period in which to cure the same. Said period shall begin with the last day on which Landlord shall cure such default before Tenant has the right to exercise any remedy by reason of such default. All notices to the mortgagee shall be sent by United States registered or certified mail, postage prepaid, return receipt requested. 38. Controlling LAN. This Lease, and all terms hereunder, shall be construed consistent with the laws of the State of Colorado. Any dispute resulting in litigation hereunder shall be resolved in court proceedings instituted in Weld County, Colorado and in no other jurisdiction. 39. Landlord Not a ,Partner with Tenant. Nothing contained in this Lease shall be deemed, held, or construed as creating Landlord as a partner, agent, associate of, or in joint venture with Tenant in the conduct of Tenant's business, it being expressly understood and agreed that the relationship between the parties hereto is and shall at all times remain that of landlord -tenant. 40. Partial Invalidity. If any term, covenant, or condition of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease or the application of such term,covenant, or condition to persons and circumstances other than those of which it has been held invalid or unenforceable, shall not be affected thereby, and each term, covenant, and condition of this Lease shall be valid and shall be enforced to the fullest extent permitted by law. 41. Default - Remedies of Landlord. A. The following events "Events of Default," or individually, are referred to collectively, as as an "Event of Default:" (i) Tenant defaults in the due and punctual payment of rent, and such default continues for five (5) days after notice from Landlord. (ii) Tenant vacates or abandons the Leased Premises. (iii) This Lease or the Leased Premises or any part of the Leased Premises is taken upon execution or by other process of law directed against Tenant, or is taken upon or subject to any attachment -20- 4), at the instance of any creditor or claimant against Tenant, and said attachment is not discharged or disposed of within fifteen (15) days after its levy. (iv) Tenant files a petition in bankruptcy or insolvency or for reorganization or arrangement under the bankruptcy laws of the United States or under any insolvency act of any state, or admits the material allegations of any such petition by answer or otherwise, or is dissolved or makes an assignment for the benefit of creditors. (v) Involuntary proceedings under any such bankruptcy law or insolvency act or for the dissolution of Tenant are instituted against Tenant, or a receiver or trustee is appointed for all or substantially all of the property of Tenant, and such proceeding is not dismissed or such receivership or trusteeship vacated within sixty (60) days after such institution or appointment. (vi) Tenant breaches any of the other agreements, terms, covenants or conditions which this Lease requires Tenant to perform, and such breach continues for a period of twenty (20) days after notice from Landlord to Tenant or if such breach cannot be cured reasonably within such twenty (20) day period and Tenant fails to commence and proceed diligently to cure such breach within a reasonable time period. B. If any one or more Events of Default set forth in paragraph 41.A occurs, then Landlord has the right, at its election: (i) To give Tenant written notice of Landlord's intention to terminate this Lease on the earliest date permitted by law or on any later date specified in such notice, in which case Tenant's right to possession of the Leased Premises shall cease and this Lease shall be terminated, except as to Tenant's liability, as if the expiration of the term fixed in such notice were the end of the Lease Term. If Landlord terminates the lease, Landlord shall have the duty to re -let the Premises in good faith if possible and to subtract from its damage claims against Tenant any rent received from re -letting during the remainder of the Lease Term; Landlord may include in its damages all costs of the re -letting. (ii) Without further demand or notice, to re-enter and take possession of the Leased Premises or any part of the Leased Premises, repossess the same, expel Tenant and those claiming through or under Tenant, and remove the effects of both or either, using such force for such purposes as may be necessary, without being liable for prosecution, without being deemed guilty of any manner of trespass, - 21 - and without prejudice to any remedies for arrears of Base Monthly Rent or other amounts payable under this Lease or as a result of any preceding breach of covenants or conditions. (iii) Without further demand or notice to cure any Event of Default and to charge Tenant for the cost of effecting such cure, including, without limitation, attorneys' fees and interest on the amount so advanced at the rate set forth in paragraph 30 provided that Landlord shall have no obligation to cure any such Event of Default of Tenant. Should Landlord elect to re-enter as provided in paragraph 41.B, or should Landlord take possession pursuant to legal proceedings or pursuant to any notice provided by law, Landlord shall use commercially reasonable efforts, without terminating this Lease, to relet the Leased Premises for such term or terms (which may be greater or less than the period which would otherwise have constituted the balance of the Lease Term) and on such conditions and upon such other terms (which may include concessions of free rent and alteration and repair of the Leased Premises) as Landlord, in its sole discretion, may determine, and Landlord may collect and receive the Rent, although Landlord shall reasonably attempt to recoup its losses in rent due to Tenant's default from such re -letting as much as possible. Landlord shall in no way be responsible or liable for any failure to relet the Leased Premises, or any part of the Leased Premises, or for any failure to collect any Rent due upon such reletting. No such re-entry or taking possession of the Leased Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease unless a written notice of such intention is given to Tenant. No notice from Landlord under this paragraph or under a forcible or unlawful entry and detainer statute or similar law shall constitute an election by Landlord to terminate this Lease unless such notice specifically so states. Landlord reserves the right following any such reentry or reletting to exercise its right to terminate this Lease by giving Tenant such written notice, in which event this Lease shall terminate as specified in such notice. C. In the event that Landlord does not elect to terminate this Lease as permitted in paragraph 41.B.(i) but, on the contrary, elects to take possession as provided in paragraph 41.B(ii), Tenant shall pay to Landlord: (i) Base Monthly Rent and other sums as provided in this Lease, which would be payable under this Lease if such repossession had not occurred, less; (ii) the net proceeds, if any, of any reletting of the Leased Premises after deducting all Landlord's expenses in connection with such reletting, including, without limitation, all repossession costs, brokerage commissions, attorneys' fees, expenses of employees, alteration and repair costs - 22 - and expenses of preparation for such reletting. If, in connection with any reletting, the new lease term extends beyond the existing Lease Term, or the Leased Premises covered by such new lease include other premises not part of the Leased Premises, a fair apportionment of the rent received from such reletting and the expenses incurred in connection with such reletting as provided in this paragraph shall be made in determining the net proceeds from such reletting, and any rent concessions shall be equally apportioned over the term of the new lease. Tenant shall pay such rent and other sums to Landlord monthly on the day on which Base Monthly Rent would have been payable under this Lease if possession had not been retaken and Landlord shall be entitled to receive such rent and other sums from Tenant on each such day. D. If this Lease is terminated on account of the occurrence of an Event of Default, Tenant shall remain liable to Landlord for damages in an amount equal to Base Monthly Rent and other amounts which would have been owing by Tenant for the balance of the Lease Term had this Lease not been terminated, less the net proceeds of any reletting of the Leased Premises by Landlord subsequent to such termination, after deducting all Landlord's expenses in connection with such reletting, including, but without limitation, the expenses enumerated in paragraph 41.C. Landlord shall be entitled to collect such damages from Tenant monthly on the day on which Base Monthly Rent and other amounts would have been payable under this Lease if this Lease had not been terminated, and Landlord shall be entitled to receive such Base Monthly Rent and other amounts from Tenant on each such day. Alternatively, at the option of Landlord, in the event this Lease is so terminated, Landlord shall be entitled to recover against Tenant as damages for loss of the bargain and not as a penalty, an aggregate Rent which, at the time of such termination of this Lease, represents the excess of the aggregate of Base Monthly Rent and all other Rent payable by Tenant that would have accrued for the balance of the Lease Term over the aggregate rental value of the Leased Premises (such rental value to be computed on the basis of a tenant paying not only a rent to Landlord for the use and occupation of the Leased Premises, but also such other charges as are required to be paid by Tenant under the terms of this Lease) for the balance of such term, both discounted to present value at the lesser rate of six percent (SAC) or the prime rate of interest as reported in the Wall Street Journal (Western Edition) on the date of the Event of Default. E. Any proceeding or proceedings for the recovery of the amounts and damages set forth in paragraphs 41.C and 41.D may be brought by Landlord, from time to time, at Landlord's election, and nothing in this Lease shall be deemed to require Landlord to await the date upon which this Lease or the Lease Term would have expired had - 2 3 - there occurred no Event of Default. Each right and remedy provided for in this Lease is cumulative and is in addition to every other right or remedy provided for in this Lease or now or after the Date existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by Landlord of any one or more of the rights or remedies provided for in this Lease or now or after the Date existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by Landlord of any or all other rights or remedies provided for in this Lease or now or after the Date existing at law or in equity or by statute or otherwise. All costs incurred by Landlord in collecting any amounts and damages owing by Tenant pursuant to the provisions of this Lease or to enforce any provision of this Lease, including reasonable attorneys' fees from the date any such matter is turned over to as attorney, whether or not one or more actions are commenced by Landlord, shall also be recoverable by Landlord from Tenant. 42. Legal Proceedings Responsibilities. In the event of any litigation relating to this Lease, the court shall award to the prevailing party all reasonable costs and expenses incurred by the prevailing party in connection therewith, including a reasonable sum for attorneys' fees. 43. Hazardous Materials. Part of the consideration for delivery of this Lease by Landlord is its reliance upon the promise of Tenant that no processes will be performed that would emit hazardous materials, vapors, chemicals, or other pollutants into the atmosphere from, or allow hazardous accumulation of wood or chemicals on, any part of the Leased Premises except in an environment controlled by appropriately designed and installed air handling or other equipment which shall be maintained, and operated at Tenant's expense at all times during the term hereof as required to prevent such hazardous accumulations or emissions. Prior to the installation of such equipment, Landlord shall be provided such information and certification by experts, if Landlord deems applicable, in order for Landlord to monitor the compliance by Tenant with this provision. 44. Entire Agreement. It is expressly understood and agreed by and between the parties hereto that this Lease sets forth all the promises, agreements, conditions, and understandings between Landlord and/or its agents and Tenant relative to the Leased Premises and that there are no promises, agreements, conditions, or understandings either oral or written, between them other than are herein set forth. 45. Representations. 24 A. Landlord's Representations. Landlord represents and warrants to Tenant that as of the Commencement Date, (i) Landlord has full legal power and authority to enter into and perform this Lease, and no additional signatories or consents are required to make the Lease binding and fully enforceable against Landlord, (ii) Landlord has good and marketable fee title to the Area and there are no liens, encumbrances, or other matters affecting title to the Area which would interfere with Tenant's proposed use of the Leased Premises, (iii) there are no pending or, to the best of Landlord's knowledge, threatened condemnation, litigation, actions, suits, or other legal proceedings concerning or affecting the Area, and (iv) the electrical and plumbing systems serving the Leased Premises are in good working condition. B. Tenant's Representations. Tenant represents and warrants to Landlord that as of the Commencement Date, (i) Tenant is a limited liability corporation, duly formed and in good standing under the laws of the State of Colorado, (ii) Tenant has fully legal power and authority to enter into and perform this Lease, and no additional signatories or consents are required to make this Lease binding and fully enforceable against Tenant, and (iii) the execution, delivery, and performance of this Lease have been duly authorized by all necessary corporate action, and this Lease, when executed and delivered by Tenant, is a valid and binding obligation of Tenant, enforceable in accordance with its terms. 46. Landlord's Work. Landlord agrees to complete in a good and workmanlike manner, at Landlord's sole cost and expense, the work and improvements described on Exhibit "B" attached hereto and incorporated herein by reference ("Landlord's Work"). Landlord's Work shall be completed prior to October 1, 2016, or as soon thereafter as reasonably practicable. All other work to complete or place the Leased Premises in a finished condition for occupancy by Tenant shall be done by Tenant, at Tenant's sole cost and expense, but only with Landlord's written approval of same. No approval by Landlord shall be deemed valid unless signed in writing by Landlord. 47: Exclusive Ste: Landlord agrees not to lease any space to another tenant in the building that sells or provides any of the following products or services: wholesale and retail sale of paint, architectural coatings, paint products, window treatments, wall coverings, floor coverings, home decorating furnishings, supplies and associated products and services. 48. Intentionally deleted. -25- 49. Brokers. Tenant represents and warrants that Aki Palmer of Cushman Wakefield is acting as its agent to this transaction and Landlord represents and warrants that Nathan Klein of LC Real Estate Group, LLC is acting as its agent in this transaction and shall be compensated by Landlord pursuant to the listing agreement between Landlord and LC Real Estate Group, LLC (formerly Loveland Commercial, LLC). Tenant hereby agrees to indemnify and hold Landlord harmless of and from any and all losses, costs, damages, or expenses (including, without limitation, all attorneys' fees and disbursements) by reason of any claim of, or liability to, any other broker or person claiming through Tenant and arising out of this Lease. Additionally, Tenant acknowledges and agrees that Landlord shall have no obligation for payment of any brokerage fee or similar compensation to any person with whom Tenant has dealt or may deal with in the future with respect to leasing of any additional or expansion space in the Building or any renewals or extension of this Lease unless specifically provided for by separate written agreement with. Landlord. In the event any claim shall be made against Landlord by any other broker who shall claim to have negotiated this Lease on behalf of Tenant or to have introduced Tenant to the Building or to Landlord, Tenant hereby indemnifies Landlord, and Tenant shall be liable for the payment of all reasonable attorneys' fees, costs, and expenses incurred by Landlord in defending against the same; and in the event such broker shall be successful in any such action, Tenant shall, upon demand, make payment to such broker. 50. Lease Exhibits Attached. This Lease includes the following Lease Exhibits which are incorporated herein and made a part of this Lease: Exhibit "A" - Legal Description of the Area Exhibit "B" - Landlord's Work Exhibit "C" - Guaranty of Lease 51. Miscel,l.anepus. Paragraph headings are for purposes of reference and shall not affect the true meaning and intent of the terms hereof. Throughout this Lease, wherever the words "Landlord" and "Tenant" are used, they shall include and imply to the singular, plural, persons both male and female, companies, partnerships, and corporations, and in reading this Lease, the necessary grammatical changes required to make the provisions hereof mean and apply as aforesaid shall be made in the same manner as though originally included in this Lease. 52. Summary of Financial Terms. - 26 - A. The initial Base Monthly Rent is $2,629.67. B. The security deposit is $3,400.00. C. Tenant's Prorata Share is 32.56 percent. D. With the exception of the Free Rent Period, Tenant's initial monthly payment of Rent to Landlord is $3,381.00, representing the following: $ 2,629.67 Base Monthly Rent (based on $12.75 psf) (paragraph 4.A) $ 644.00 to Share of (paragraph insurance Common Area expenses Tenant's Prorat estate taxes 11.A) , (paragraph 12.A),and maintenance and (paragraph 16) $ 3,273.67 TOTAL [SIGNATURES ON FOLLOWING PAGE] -27- IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first above written. Hal Marshall Sears Revocable Trust By _ "Landlord" N0CO Paint & Design, LLC dfb/a- F "Tenant" -28- EXHIBIT "A" ATTACHED TO AND MADE A PART OF THE LEASE AGREEMENT BETWEEN Marshall Sears Revocable Trust ("LANDLORD") AND NOCO Paint f Des34g LC ("TENANT") ;LEGAL DESCRIPTION OF THE AREA WAG Lot 2 WINDSOR ASSEMBLY OF GOD SUBDIVISION, Town of Windsor, Weld County, Colorado. -29- EXHIBIT "B" ATTACHED TO AND MADE A PART OF THE LEASE AGREEMENT BETWEEN Hal Marshall Sears Revocable Trust ("LANDLORD") AND NOCO Paint & Design, LLC se ("TENANT") LANDLORD'S WORK Ingress/Egress: Provide appropriate curbs, sidewalks, drives to meet all state, local codes relating to vehicular and pedestrian. traffic. Provide two front doors that meet or exceed all state and local codes or as required for occupancy. Provide double rear doors or roll up door without a separation bar to allow for pallets of 48" to pass through at the rear east door of the building. Storefront& Exterior: All storefront framing and glass shall be delivered as existing. Provide any insulation or drywall at exterior walls in the Premises. Walls: Demising walls in place with studs and drywall (type X as required) to deck per construction classification of property or per tenant acoustical requirement of privacy for sound and smells, with minimum 3" sound-batt insulation, sanded, taped (fire taped as required), and ready for paint. All walls shall be taped, textured, and ready for paint. Floor: Concrete floor ready for carpet (except for restroom flooring which is addressed below). Any trench or gravel areas to be poured in place after location of restroom. Any control joints or seams to be a minimum to avoid excessive floor preparation. Ceiling:None Restroom(s): Restroom(s) within 10' of the rear exterior wall completed to minimum State/City/ADA code for type and number of fixtures. Framed, drywall taped and ready for paint with commercial grade wash basin, toilet, exhaust fan, towel dispenser, toilet paper dispenser, and mirror which meet all applicable codes. Restroom door, frame, and locking hardware to be installed. Floor to be like -new VT or ceramic tile. Frame to be painted. Door to be painted with same or - 30 - stained. Restroom door should be on the south side. Slop sink to be installed outside the restroom and near the east exterior wall _:r1< fL+e u e>truo.'-; 6)' #IVAC: HVAC service in place. Main trunk line installed and appropriately sized supply and return grills sufficient for all open and enclosed spaces, as designated by Tenant's plans. (All enclosed areas to have a minimum of one supply/return). Air balance, thermostat that is checked and operational, outside air intake, all per ASHRAE standards. Minimum capacity for RTU'is 3 ton. Venting/exhaust to outside for any restroom exhaust fan. All HVAC to be separately controlled within the Premises. Electrical: Minimum of 10-20 amp circuits on tenant's own electrical panel (200 amp panel minimum requirement) for general connected load, plus, adequate capacity for lighting, HVAC, water heater. Separate electric meter. Lightinc: Commercial grade 2x4 light fixtures (T-8 tubes; electronic ballast) equivalent to one fixture per every 75 usable SF. Lighting should be installed to coordinate with Tenant's plans. Exit/emergency lighting shall be installed at each egress door or as required per code. Switches shall be installed for each restroom (light and fan) plus 3 -way for all 2 X 4 ceiling lights. F're Protection Provide appropriate coverage of heads for partition layout. Provide description of any Life Safety system provided in building and its operation. Quantity and location of head to comply with state, local codes and should be coordinated/placed per Tenant's plans as not to interfere with any components which meet the ceiling tile and remain 4' from demising wall. IF EXISTING: Provide sprinkler layout as required by state, local codes. Include necessary permits and inspections. If head is existing, include additional and dropping down, coordinated/placed per Tenant's plans as not to interfere with any components which meet the ceiling tile. Qther: 1. Gas service for water heater and/or HVAC if units are gas -fired. 2. Point of Use Water heater for each restroom hand sink. 3. Phone service from D -mark of the building to the suite - 31 - and capacity to allow for minimum of 6 incoming lines and 8 receptacles per Tenant's plans. 4. The Premises must be separately metered for electric, gas, as required unless otherwise specified in the lease. If meter is not in place at time of construction commencement, Landlord shall provide temporary service to the space for construction, followed by 4 permanent meter at completion. 5. Electric water/drinking fountain and slop sink as required by code. 6. If illuminated signage is required or building standard, provide dedicated sign circuit with timer controls. Landlord will perform a walk-thru of the space with the contractor before Landlord's work begins. If work is not completed in accordance with the above specifications, contractor will complete the work at Landlord's expense. 32 EXHIBIT C - GUARANTY OF LEASE EXHIBIT "C" ATTACHED TO AND MADE A PART OF THE LEASE AGREEMENT BETWEEN Hal Marshall Sears Revocable Trust ("LANDLORD") AND NOCO Paint & Design, LLC ("TENANT" ) WHEREAS, a certain Lease of even date herewith has been, or will be, executed and between Hal Marshall Sears Revocable Trust, therein and herein referred o as "Landlord," and NOCO Paint & Design, LLC Bgi"Itherein referred to as "Tenant," covering certain premises in the Town of Windsor, County of Weld, State of Colorado; and WHEREAS, Landlord under said Lease requires as a condition to its execution of said Lease that the undersigned guaranty the full performance of the obligations of Tenant under said Lease; and WHEREAS, the undersigned is desirous that Landlord enter into said Lease with Tenant; NOW, THEREFORE, in consideration of the execution of said Lease by Landlord, the undersigned hereby unconditionally guarantee the full performance of each and all of the terms, covenants and conditions of said Lease, (or any replacement Lease which, collectively or alternatively with the original Lease is referred to in this Guaranty as "said Lease") to be kept and performed by said Tenant, including the payment of all rentals and other charges to accrue thereunder. The undersigned further agrees to the following: 1. That this covenant and agreement on its part shall continue in favor of Landlord notwithstanding any extension, modification, or alteration of said Lease entered into by and between the parties thereto, or their successors or assigns, or notwithstanding any assignment of said Lease, with or without the consent of Landlord, and no extension, modification, alteration or assignment of the above referred to Lease shall in any manner release or discharge the undersigned and it does hereby consent thereto. 2. This Guaranty will continue unchanged by any bankruptcy, reorganization or insolvency of Tenant or any successor or assignee thereof or by a disaffirmance or abandonment by a trustee of Tenant. 3. Landlord may, without notice, assign this Guaranty of Lease in whole or in part and no assignment or transfer of the Lease -33- shall operate to extinguish or diminish the liability of the undersigned hereunder. 4. The liability of the undersigned under this Guaranty of Lease shall be primary and that in any right of action which shall accrue to Landlord under the Lease, Landlord may, at its option, proceed against the undersigned without having commenced any action or having obtained any judgment against Tenant. 5. To pay Landlord's reasonable attorney's fees and all costs and other expenses incurred in any collection or attempted collection or in any negotiations relative to the obligations hereby guarantied or enforcing this Guaranty of Lease against the undersigned, individually and jointly. 6. That it does hereby waive notice of any demand by Landlord, as well as any notice of default in the payment of rent or any other amounts contained or reserved in the Lease. This guaranty shall expressly be limited to an amount equal to three (3) years of Base Rent and Additional Rent (as defined in the Lease)or the amount of Base Rent and Additional Rent remaining for the Lease Term if the remaining Lease Term is less than three (3) years, along with any and all expenses associated with Landlord's attorney's fees or costs of collection plus the amount of the Landlord's Work and brokerage fees paid in association with the Lease which are unamortized as of the date of Tenant's default. Notwithstanding the foregoing, in the event that Tenant has not been in default during the initial Lease Term, and Tenant exercises its right to renew the Lease, this Guaranty shall be limited to one year of Base Rent and Additional Rent during the Option Term, along with any and all expenses associated with Landlord's attorney's fees or costs of collection. For purposes of clarity, if Tenant has been in default during the initial Lease Term, the guaranty during the Option Term shall be equal to three (3) years of Base Rent and Additional Rent or the amount of Base Rent and Additional Rent remaining for the Lease Term if the remaining Lease Term is less than three (3) years; along with any and all expenses associated with Landlord's attorney's fees or costs of collection. The use of the singular herein shall include the plural. The obligation of two or more parties shall be joint and several. The terms and provisions of this Guaranty shall be binding upon and inure to the benefit of the respective successor and assigns of the parties herein named. -34- IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be executed as of the date first set forth in this Lease. GUARANTOR: Garrett Farrar Address ::3:2>4.,5 �r �ct,�, /„ a v Phone: 97v -- 69/ -/5? SSN: 5-7 41 s'$ -37x5 Driver's License #: ?6 ag -cy//) GUARANTOR: Melody Farrar r Address: L/ � e A PGs \cuty1 is\ o ks\5tt``srt. Co8O3`4 Phone J 4- .327- 7 Y7r SSN:_ j-?Z-Z(39I Driver's License # : 9rj- ilz-- 0715/ Address P /3 / 131,"24:1/6 Inc, 0,, L 7'1s vc , C O V O Phone: 71c - 9'4/0 _ O y&S` SSN:33S ,® -- ?7c Driver's License #:/2 00 - Li 7 GUARANTOR Briana Huisman Address : 35/ A/FA la air u,, f 13 CO 00 j75-0 Phone: 72.o.. 5'`/o --p f-/ SSN: 7zz - 4/3 - 412, Driver's License # : / 2 - 051 _ 05- t// - 35 - PLACE STICKER AT TOP OF ENVELOPE TO THE RIGHT OF THE RETURN ADDRESS, FOLD AT DOTTED LINE 1st Net eal Estate Services, Inc. 3333 S. Wadsworth Blvd., Suite D-105 Lakewood, CO 80227 CERTIFIED MAIL° i 1111 1111 IBY i 7019 0140 0000 2576 5360 Weld County Board of Equalization 1150 O Street, P. O. Box 758 Greeley, CO 80631 1000 i i i 80631 A U.6, P8TAE LITLETENV OPAID 80123 AMOUJUL NTS $8.35 R2305H129858-36 Hello