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HomeMy WebLinkAboutresolution.council.104-19 RESOLUTION #104 (Series of 2019) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AUTHORIZING SUPPLEMENTAL BUDGET AUTHORITY AND APPROVING A CONTRACT TO PURCHASE PROPERTY LOCATED AT 105 ASPEN AIRPORT BUSINESS CENTER OTHERWISE KNOWN AS ASPEN MINI-STORAGE ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a contract to purchase property located at 105 Aspen Airport Business Center otherwise known as Aspen Mini-Storage, a true and accurate copy of which is attached hereto as "Exhibit A"; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves the 2019 supplemental budget amount of$550,000 from the City's 150 Housing Development Fund for earnest monies paid and the contract to purchase property located at 105 Aspen Airport Business Center otherwise known as Aspen Mini- Storage, a copy of which is annexed hereto and incorporated herein. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 8th day of October, 2019. 73LFff-m__ Torre, Mayor 1, Linda Manning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held October 8, 2019. Linda Mann in , City Clerk Exhibit A - Contract to purchase property located at 105 Aspen Airport Business Center otherwise known as Aspen Mini-Storage ' Aspen Snowmass Sotheby's International Realty 3 Aspen $OthebyS415 East Hyman Avenue Aspen, CO 81611 Snowmass .IA,. 4 Andrew Ernemann andrew.ernemann@sothebysrealty.com 5 Ph: 970-379-8125 Fax: 888-550-2881 6 7 he printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate 8 ommission. CBS3-5-19 Mandato 7-19 9 10 THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL 11 12 AND TAX OR OTHER COUNSEL BEFORE SIGNING. 13 14 CONTRACT TO BUY AND SELL REAL ESTATE 15 16 (COMMERCIAL) 17 (❑ Property with No Residences) 1s (®Property with Residences-Residential Addendum Attached) 19 20 21 Date: 9/20/2019 22 23 za AGREEMENT 25 26 1. AGREEMENT. Buyer agrees to buy and Seller agrees to sell the Property described below on the 27 28 terms and conditions set forth in this contract(Contract). 29 30 2. PARTIES AND PROPERTY. 31 32 2.1. Buyer. Buyer, City of Aspen(Buyer)will take title to the Property described below as 33 ❑ Joint Tenants ❑Tenants In Common ®Other TBD. 34 35 2.2. No Assignability.This Contract IS NOT assignable by Buyer unless otherwise specified in 36 Additional Provisions. 37 2.3. Seller. Aspen Mini-Storage, LLC(Seller) is the current owner of the Property described 38 39 below. 40 2.4. Property.The Property is the following legally described real estate in the County of 41 Pitkin, Colorado: 42 43 COMMUNICATION CENTER Lot: 3 44 known as No. 105 Aspen Airport Business Center, Aspen, CO 81611, 45 together with the interests, easements, rights, benefits, improvements and attached fixtures appurtenant 46 47 thereto, and all interest of Seller in vacated streets and alleys adjacent thereto except as herein excluded 43 (Property). 49 50 51 2.5. Inclusions. The Purchase Price includes the following items (Inclusions): 52 2.5.1. Inclusions -Attached. If attached to the Property on the date of this Contract, the 53 following items are included unless excluded under Exclusions: lighting, heating, plumbing, ventilating and air 54 conditioning units, TV antennas, inside telephone, network and coaxial (cable)wiring and connecting 55 56 blocks/jacks, plants, mirrors, floor coverings, intercom systems, built-in kitchen appliances, sprinkler systems 57 and controls, built-in vacuum systems (including accessories)and garage door openers (including any remote 58 controls). If checked, the following are owned by the Seller and included (leased items should be listed under 59 60 Due Diligence Documents): ❑ None ❑ Solar Panels ❑Water Softeners ®Security Systems ❑ 61 Satellite Systems (including satellite dishes). If any additional items are attached to the Property after the date 62 of this Contract, such additional items are also included in the Purchase Price. 6 64 2.5.2. Inclusions -Not Attached. If on the Property, whether attached or not, on the date of 65 this Contract, the following items are included unless excluded under Exclusions: storm windows, storm 66 doors, window and porch shades, awnings, blinds, screens,window coverings and treatments, curtain rods, 67 68 drapery rods, fireplace inserts, fireplace screens, fireplace grates, heating stoves, storage sheds, carbon 69 monoxide alarms, smoke/fire detectors and all keys. 7(l CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 1 of 21 CTMecontracts.com-CC2019 CTM Software Corp. 71 2.5.3. Personal Property-Conveyance.Any personal property must be conveyed at Closing by 72 Seller free and clear of all taxes (except personal property taxes for the year of Closing), liens and 73 74 encumbrances, except N/A. 75 Conveyance of all personal property will be by bill of sale or other applicable legal instrument. 76 2.5.4. Other Inclusions. The following items, whether fixtures or personal property, are also 77 78 included in the Purchase Price: Those appurtenant to the Property including all owner/tenant 79 improvements and fixtures. 80 2.5.5. Parking and Storage Facilities.The use or ownership of the following parking facilities: 81 82 those appurtenant to the Property; and the use or ownership of the following storage facilities: 83 those appurtenant to the Property. 84 85 Note to Buyer: If exact rights to the parking and storage facilities is a concern to Buyer, Buyer should 86 investigate. 87 2.5.6. Trade Fixtures.With respect to trade fixtures, Seller and Buyer agree as follows: . 88 89 The trade fixtures to be conveyed at Closing will be conveyed by Seller free and clear of all taxes 90 (except personal property taxes for the year of Closing), liens and encumbrances, except . Conveyance will be 91 by bill of sale or other applicable legal instrument. 92 93 2.6. Exclusions.The following items are excluded (Exclusions): None 94 95 2.7. Water Rights/Well Rights. 96 97 ❑ 2.7.1. Deeded Water Rights.The following legally described water rights: 98 N/A 99 100 Any deeded water rights will be conveyed by a good and sufficient deed at Closing. lot ❑ 2.7.2. Other Rights Relating to Water.The following rights relating to water not included in 101 §§ 2.7.1, 2.7.3, and 2.7.4,will be transferred to Buyer at Closing: N/A 103 104 ❑ 2.7.3. Well Rights. Seller agrees to supply required information to Buyer about the well. 105 Buyer understands that if the well to be transferred is a"Small Capacity Well"or a"Domestic Exempt Water 106 Well" used for ordinary household purposes, Buyer must, prior to or at Closing, complete a Change in 107 108 Ownership form for the well. If an existing well has not been registered with the Colorado Division of Water log Resources in the Department of Natural Resources(Division), Buyer must complete a registration of existing 110 well form for the well and pay the cost of registration. If no person will be providing a closing service in 111 connection with the transaction, Buyer must file the form with the Division within sixty days after Closing. The 112 113 Well Permit#is N/A. 114 ❑ 2.7.4.Water Stock Certificates. The water stock certificates to be transferred at Closing are 115 116 as follows: N/A 117 2.7.5. Conveyance. If Buyer is to receive any rights to water pursuant to§2.7.2 (Other 118 Rights Relating to Water), §2.7.3 (Well Rights), or§ 2.7.4 (Water Stock Certificates), Seller agrees to convey 119 such rights to Buyer b executing the applicable legal instrument at Closing. lzo 9 Y Y 9 PP� 9 9• 121 122 3. DATES, DEADLINES AND APPLICABILITY. 123 3.1 Dates and Deadlines. 124 125 - --- —— --- 126 ;Item No. Reference Event Date or Deadline 127 -- _ 128 3 business days 129 1 §4.3 , Alternative Earnest Money Deadline after MEC — — -- — ------ 1 130 itle 131 --- — - 132 2 §8.1, §8.4 Record Title Deadline 14 days after MEC 133 3 §8.2,§8.4 Record Title Objection Deadline 120 days after MEC 134 - -- -- - 135 4 §8.3 Off-Record Title Deadline 14 days after MEC 136 5 §8.3 Off-Record Title Objection Deadline 120 days after MEC 137 — —— --- --- 138 6 §8.5 Title Resolution Deadline 125 days after MEC 139 7 §8.6 Right of First Refusal Deadline 140 CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 2 of 21 CTMeContracts.com-:'2019 CTM Software Corp. 141 _Owners'Association _ 143 8 §7.2 Association Documents Deadline 14 days after MEC 144 9 §7.4 Association Documents Termination Deadline 120 da s after MEC 145 146 Seller's Disclosures _ 147 10 §10.1 Seller's Property Disclosure Deadline 30 days after MEC 148 149 11 §10.10 Lead-Based Paint Disclosure Deadline 150 Loan and Credit 151 152 12 §5.1 New Loan Application Deadline 153 13 §5.2 New Loan Termination Deadline 154 14 §5.3 Buyer's Credit Information Deadline 155 156 15 §5.3 Disapproval of Buyer's Credit Information 157 Deadline 158 16 §5.4 _Existing Loan Deadline 159 160 17 §5.4 Existing Loan Termination Deadline 161 18 §5.4 Loan Transfer Approval Deadline 162 163 19 §4.7 Seller or Private Financing Deadline 164 Appraisal 165 166 20 §6.2 Appraisal Deadline 120 days after MEC 167 21 §6.2 Appraisal Objection Deadline 120 days after MEC 169 169 22 §6.2 Appraisal Resolution Deadline 125 days after MEC 170 Survey 171 172 23 §9.1 New ILC or New Survey Deadline 21 days after MEC 173 24 §9.3 New ILC or New Survey Objection Deadline 120 days after MEC 174 175 25 §9.3 New ILC or New Survey Resolution Deadline 125 days after MEC 176 Inspection and Due Diligence 177 178 26 §10.3 Inspection Objection Deadline 120 days after MEC 179 27 §10.3 Inspection Termination Deadline 120 days after MEC 180 181 28 §10.3 Inspection Resolution Deadline 125 days after MEC 182 29 §10.5 Property Insurance Termination Deadline 120 days after MEC 183 184 30 §10.6 Due Diligence Documents Delivery Deadline 30 days after MEC 185 31 §10.6 Due Diligence Documents Objection Deadline 120 days after MEC 186 32 §10.6 Due Diligence Documents Resolution Deadline 125 days after MEC 187 188 33 §10.6 Environmental Inspection Termination Deadline 120 days after MEC 189 34 §10.6 ADA Evaluation Termination Deadline 120 days after MEC 190 191 35 §10.7 Conditional Sale Deadline 192 36 §10.10 Lead-Based Paint Termination Deadline 193 194 37 §11.1, 11.2 Estoppel Statements Deadline 30 days after MEC 195 38 §11.3 Estoppel Statements Termination Deadline 120 day after MEC 196 Closing and Possession 197 g --- 198 39 §12.3 Closing Date 150 days after MEC 200 40 Closing Date §17 Possession Date 9 201 After Closing and 202 41 §17 Possession Time Fundin 203 204 39 §28 Acceptance Deadline Date 9/23/2019 Monda 205 42 §28 Acceptance Deadline Time 5:00 PM MDT 206 - 207 43 208 209 210 _ CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 3 of 21 CTMeContracts.com-x'2019 CTM Software Corp. 111 3.2. Applicability of Terms.Any box checked in this Contract means the corresponding provision 212 applies. If any deadline blank in § 3.1 (Dates and Deadlines) is left blank or completed with the abbreviation 213 214 "N/A", or the word "Deleted,"such deadline is not applicable and the corresponding provision containing the 215 deadline is deleted. If no box is checked in a provision that contains a selection of"None", such provision 216 means that"None"applies. 217 218 219 The abbreviation "MEC" (mutual execution of this Contract)means the date upon which both parties have 220 signed this Contract. 221 222 223 4. PURCHASE PRICE AND TERMS. 224 4.1. Price and Terms. The Purchase Price set forth below is payable in U.S. Dollars by Buyer as 225 follows: 226 227 -- -- -_—_ -- - 228 Item No. Reference Item Amount - _ Amount 2291 230 _§ 4.1 Purchase Price $11,000,000.00 _ - -- -- - - -- 231 2 § 4.3 Eamest Money $5_5_0,000.00 232 233 3 § 4.5 !New Loan __ 234 4 § 4.6 lAssumption Balance 235 --- 236 5 § 4._7---Private Financing 237 6 § 4.7 Seller Financing 238 — + 239 7 240 8 — -- 241 242 9 _ _ § 4.4 Cash at Closing _ $10,450,000.00 243 - 10 OTAL $11,000,000.00 $11,000,000.001 244 -- - — 245 246 4.2. Seller Concession. At Closing, Seller will credit to Buyer$ N/A (Seller Concession). The 247 248 Seller Concession may be used for any Buyer fee, cost, charge or expenditure to the extent the amount is 249 allowed by the Buyer's lender and is included in the Closing Statement or Closing Disclosure at Closing. 250 Examples of allowable items to be paid for by the Seller Concession include, but are not limited to: Buyer's 251 closing costs, loan discount points, loan origination fees, prepaid items and any other fee, cost, charge, 252 253 expense or expenditure. Seller Concession is in addition to any sum Seller has agreed to pay or credit Buyer 254 elsewhere in this Contract. 255 4.3. Earnest Money. The Earnest Money set forth in this Section, in the form of a Good 256 257 Funds, will be payable to and held by Pitkin County Title-Aspen(Earnest Money Holder), in its trust 258 account, on behalf of both Seller and Buyer. The Earnest Money deposit must be tendered, by Buyer, with this 259 Contract unless the parties mutually agree to an Alternative Earnest Money Deadline for its payment. The 260 261 parties authorize delivery of the Earnest Money deposit to the company conducting the Closing (Closing 262 Company), if any,at or before Closing. In the event Earnest Money Holder has agreed to have interest on 263 Earnest Money deposits transferred to a fund established for the purpose of providing affordable housing to 264 265 Colorado residents, Seller and Buyer acknowledge and agree that any interest accruing on the Earnest Money 266 deposited with the Earnest Money Holder in this transaction will be transferred to such fund. 267 4.3.1. Alternative Earnest Money Deadline.The deadline for delivering the Earnest 269 269 Money, if other than at the time of tender of this Contract, is as set forth as the Alternative Earnest Money 27o Deadline. 271 4.3.2. Return of Earnest Money. If Buyer has a Right to Terminate and timely 272 terminates, Buyer is entitled to the return of Earnest Money as provided in this Contract. If this Contract is 273 274 terminated as set forth in § 25 and, except as provided in §24 (Earnest Money Dispute), if the Earnest Money 275 has not already been returned following receipt of a Notice to Terminate, Seller agrees to execute and return to 276 Buyer or Broker working with Buyer, written mutual instructions (e.g., Earnest Money Release form),within 277 278 three days of Seller's receipt of such form. 279 4.4. Form of Funds; Time of Payment; Available Funds. �,�n CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 4 of 21 CTMeContracts.com-C2019 CTM Software Corp. 281 4.4.1. Good Funds.All amounts payable by the parties at Closing, including any loan 282 proceeds, Cash at Closing and closing costs, must be in funds that comply with all applicable Colorado laws, 283 284 including electronic transfer funds, certified check, savings and loan teller's check and cashier's check(Good 285 Funds). 286 4.4.2. Time of Payment; Available Funds.All funds, including the Purchase Price to be 287 288 paid by Buyer, must be paid before or at Closing or as otherwise agreed in writing between the parties to allow 289 disbursement by Closing Company at Closing OR SUCH NONPAYING PARTY WILL BE IN DEFAULT. Buyer 290 represents that Buyer, as of the date of this Contract,®Does ❑ Does Not have funds that are immediately 291 verifiable and available in an amount not less than the amount stated as Cash at Closing in § 4.1. 292 293 4.5. New Loan. (Omitted as inapplicable) 294 295 4.6. Assumption. (Omitted as inapplicable) 296 297 298 4.7. Seller or Private Financing. (Omitted as inapplicable) 299 300 301 TRANSACTION PROVISIONS 302 303 304 S. FINANCING CONDITIONS AND OBLIGATIONS. (Omitted as inapplicable) 305 306 307 5.3. Credit Information and Buyer's New Senior Loan.(Omitted as inapplicable) 308 309 5.4. Existing Loan Review. (Omitted as inapplicable) 310 311 312 6. APPRAISAL PROVISIONS. 313 6.1. Appraisal Definition.An "Appraisal"is an opinion of value prepared by a licensed or certified 314 appraiser, engaged on behalf of Buyer or Buyer's lender,to determine the Property's market value (Appraised 315 316 Value). The Appraisal may also set forth certain lender requirements, replacements, removals or repairs 317 necessary on or to the Property as a condition for the Property to be valued at the Appraised Value. 318 6.2. Appraisal Condition. The applicable appraisal provision set forth below applies to the respective 319 320 loan type set forth in §4.5.3, or if a cash transaction (i.e. no financing), §6.2.1 applies. 321 6.2.1. ConventionallOther. Buyer has the right to obtain an Appraisal. If the Appraised Value 322 is less than the Purchase Price,or if the Appraisal is not received by Buyer on or before Appraisal Deadline 323 324 Buyer may, on or before Appraisal Objection Deadline: 325 6.2.1.1. Notice to Terminate. Notify Seller in writing, pursuant to§25.1, that this 326 Contract is terminated; or 327 6.2.1.2.Appraisal Objection. Deliver to Seller a written objection accompanied by 328 329 either a copy of the Appraisal or written notice from lender that confirms the Appraised Value is less than the 330 Purchase Price (Lender Verification). 331 6.2.1.3.Appraisal Resolution. If an Appraisal Objection is received by Seller, on or 332 333 before Appraisal Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement 334 thereof on or before Appraisal Resolution Deadline,this Contract will terminate on the Appraisal Resolution 335 Deadline, unless Seller receives Buyer's written withdrawal of the Appraisal Objection before such termination, 336 i.e., on or before expiration of Appraisal Resolution Deadline. 337 338 6.3. Lender Property Requirements. If the lender imposes any written requirements, replacements, 339 removals or repairs, including any specified in the Appraisal (Lender Requirements) to be made to the Property 340 (e.g., roof repair, repainting), beyond those matters already agreed to by Seller in this Contract, this Contract 341 342 terminates on the earlier of three days following Seller's receipt of the Lender Requirements, or Closing, unless 343 prior to termination: (1)the parties enter into a written agreement to satisfy the Lender Requirements; (2)the 344 Lender Requirements have been completed; or(3)the satisfaction of the Lender Requirements is waived in 345 346 writing by Buyer. 347 6.4. Cost of Appraisal. Cost of the Appraisal to be obtained after the date of this Contract must be 348 timely paid by®Buyer []Seller. The cost of the Appraisal may include any and all fees paid to the appraiser, 349 �,,,n appraisal management company, lender's agent or all three. CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 5 of 21 CTMeContracts.com-x.2019 CTM Software Corp. 351 352 353 7. OWNERS'ASSOCIATION. This Section is applicable if the Property is located within a Common 354 Interest Community and subject to the declaration (Association). 35` 7.1. Common Interest Community Disclosure.THE PROPERTY IS LOCATED WITHIN A 35U- COMMON INTEREST COMMUNITY AND IS SUBJECT TO THE DECLARATION FOR THE COMMUNITY. 358 THE OWNER OF THE PROPERTY WILL BE REQUIRED TO BE A MEMBER OF THE OWNERS' 359 ASSOCIATION FOR THE COMMUNITY AND WILL BE SUBJECT TO THE BYLAWS AND RULES AND 360 REGULATIONS OF THE ASSOCIATION.THE DECLARATION, BYLAWS AND RULES AND REGULATIONS 361 WILL IMPOSE FINANCIAL OBLIGATIONS UPON THE OWNER OF THE PROPERTY, INCLUDING AN 362 363 OBLIGATION TO PAY ASSESSMENTS OF THE ASSOCIATION. IF THE OWNER DOES NOT PAY THESE 364 ASSESSMENTS,THE ASSOCIATION COULD PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL 365 IT TO PAY THE DEBT. THE DECLARATION, BYLAWS AND RULES AND REGULATIONS OF THE 36 367 COMMUNITY MAY PROHIBIT THE OWNER FROM MAKING CHANGES TO THE PROPERTY WITHOUT AN 368 ARCHITECTURAL REVIEW BY THE ASSOCIATION (OR A COMMITTEE OF THE ASSOCIATION)AND 369 THE APPROVAL OF THE ASSOCIATION. PURCHASERS OF PROPERTY WITHIN THE COMMON 371 INTEREST COMMUNITY SHOULD INVESTIGATE THE FINANCIAL OBLIGATIONS OF MEMBERS OF THE 372 ASSOCIATION. PURCHASERS SHOULD CAREFULLY READ THE DECLARATION FOR THE COMMUNITY 373 AND THE BYLAWS AND RULES AND REGULATIONS OF THE ASSOCIATION. 374 7.2. Association Documents to Buyer. Seller is obligated to provide to Buyer the Association 375 376 Documents (defined below), at Seller's expense, on or before Association Documents Deadline. Seller 377 authorizes the Association to provide the Association Documents to Buyer,at Seller's expense. Seller's 378 obligation to provide the Association Documents is fulfilled upon Buyer's receipt of the Association Documents, 379 380 regardless of who provides such documents. 381 7.3. Association Documents.Association documents (Association Documents)consist of the 382 following: 383 384 7.3.1. All Association declarations, articles of incorporation, bylaws, articles of 385 organization, operating agreements, rules and regulations, party wall agreements and the Association's 386 responsible governance policies adopted under§38-33.3-209.5, C.R.S.; 387 7.3.2. Minutes of: (1)the annual owners'or members' meeting and (2)any executive 388 389 boards' or managers' meetings; such minutes include those provided under the most current annual disclosure 390 required under§ 38-33.3-209.4, C.R.S. (Annual Disclosure)and minutes of meetings, if any, subsequent to the 391 minutes disclosed in the Annual Disclosure. If none of the preceding minutes exist, then the most recent 392 393 minutes, if any (§§ 7.3.1 and 7.3.2, collectively, Governing Documents); and 394 7.3.3. List of all Association insurance policies as provided in the Association's last Annual 395 Disclosure, including, but not limited to, property, general liability, association director and officer professional 396 397 liability and fidelity policies.The list must include the company names, policy limits, policy deductibles, 398 additional named insureds and expiration dates of the policies listed (Association Insurance Documents); 399 7.3.4. A list by unit type of the Association's assessments, including both regular and 400 special assessments as disclosed in the Association's last Annual Disclosure; 401 p 402 7.3.5. The Association's most recent financial documents which consist of: (1)the 403 Association's operating budget for the current fiscal year, (2)the Association's most recent annual financial 404 statements, including any amounts held in reserve for the fiscal year immediately preceding the Association's 405 406 last Annual Disclosure, (3)the results of the Association's most recent available financial audit or review, (4)list 407 of the fees and charges (regardless of name of title of such fees or charges)that the Association's community 408 association manager or Association will charge in connection with the Closing including, but not limited to, any 409 410 fee incident to the issuance of the Association's statement of assessments (Status Letter), any rush or update 411 fee charged for the Status Letter, any record change fee or ownership record transfer fees (Record Change 412 Fee), fees to access documents, (5) list of all assessments required to be paid in advance, reserves or working 413 capital due at Closing and (6)reserve study, if any(§§7.3.4 and 7.3.5, collectively, Financial Documents); 414 415 7.3.6. Any written notice from the Association to Seller of a"construction defect action" 416 under§ 38-33.3-303.5, C.R.S.within the past six months and the result of whether the Association approved or 417 disapproved such action (Construction Defect Documents). Nothing in this Section limits the Seller's obligation 418 419 to disclose adverse material facts as required under§ 10.2 (Disclosure of Adverse Material Facts; Subsequent 4?n CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 6 of 21 CTMeContracts.com-V.2019 CTM Software Corp. 421 Disclosure; Present Condition) including any problems or defects in the common elements or limited common 422 elements of the Association property. 423 424 7.4. Conditional on Buyer's Review. Buyer has the right to review the Association Documents. 425 Buyer has the Right to Terminate under§ 25.1, on or before Association Documents Termination Deadline, 426 based on any unsatisfactory provision in any of the Association Documents, in Buyer's sole subjective 427 discretion. Should Buyer receive the Association Documents after Association Documents Deadline, Buyer, 428 Y Y 429 at Buyer's option, has the Right to Terminate under§25.1 by Buyer's Notice to Terminate received by Seller on 430 or before ten days after Buyer's receipt of the Association Documents. If Buyer does not receive the 431 Association Documents, or if Buyer's Notice to Terminate would otherwise be required to be received by Seller 432 433 after Closing Date, Buyer's Notice to Terminate must be received by Seller on or before Closing. If Seller does 434 not receive Buyer's Notice to Terminate within such time, Buyer accepts the provisions of the Association 435 Documents as satisfactory and Buyer waives any Right to Terminate under this provision, notwithstanding the 436 437 provisions of§8.6(Right of First Refusal or Contract Approval). 438 439 8. TITLE INSURANCE, RECORD TITLE AND OFF-RECORD TITLE. 440 441 8,1. Evidence of Record Title. 442 ® 8.1.1. Seller Selects Title Insurance Company. If this box is checked, Seller will select the 443 title insurance company to furnish the owner's title insurance policy at Seller's expense. On or before Record 444 Title Deadline, Seller must furnish to Buyer, a current commitment for an owner's title insurance policy (Title 445 446 Commitment), in an amount equal to the Purchase Price, or if this box is checked, ❑an Abstract of Title 447 certified to a current date. Seller will cause the title insurance policy to be issued and delivered to Buyer as 448 soon as practicable at or after Closing. 449 450 ❑ 8.1.2. Buyer Selects Title Insurance Company. If this box is checked, Buyer will select the 451 title insurance company to furnish the owner's title insurance policy at Buyer's expense. On or before Record 452 Title Deadline, Buyer must furnish to Seller, a current commitment for owner's title insurance policy(Title 453 454 Commitment), in an amount equal to the Purchase Price. 455 If neither box in §8.1.1 or§8.1.2 is checked, § 8.1.1 applies. 456 8.1.3. Owner's Extended Coverage(OEC). The Title Commitment®Will ❑Will Not 457 contain Owner's Extended Coverage(OEC). If the Title Commitment is to contain OEC, it will commit to delete 458 459 or insure over the standard exceptions which relate to: (1)parties in possession, (2)unrecorded easements, 460 (3)survey matters, (4) unrecorded mechanics' liens, (5)gap period (period between the effective date and time 461 of commitment to the date and time the deed is recorded)and (6) unpaid taxes, assessments and unredeemed 462 463 tax sales prior to the year of Closing. Any additional premium expense to obtain OEC will be paid by ❑Buyer 464 ®Seller ❑ One-Half by Buyer and One-Half by Seller❑ Other. 465 Regardless of whether the Contract requires OEC, the Title Insurance Commitment may not provide OEC or 466 467 delete or insure over any or all of the standard exceptions for OEC. The Title Insurance Company may require 468 a New Survey or New ILC, defined below, among other requirements for OEC. If the Title Insurance 469 Commitment is not satisfactory to Buyer, Buyer has a right to object under§8.5 (Right to Object to Title, 470 Resolution). a71 ) 472 8.1.4. Title Documents. Title Documents consist of the following: (1) copies of any plats, 473 declarations, covenants, conditions and restrictions burdening the Property and (2)copies of any other 474 documents (or, if illegible, summaries of such documents) listed in the schedule of exceptions (Exceptions) in 475 476 the Title Commitment furnished to Buyer(collectively, Title Documents). 477 8.1.5. Copies of Title Documents. Buyer must receive, on or before Record Title Deadline, 478 copies of all Title Documents. This requirement pertains only to documents as shown of record in the office of 479 480 the clerk and recorder in the county where the Property is located. The cost of furnishing copies of the 481 documents required in this Section will be at the expense of the party or parties obligated to pay for the 482 owner's title insurance policy. 484 8.1.6. Existing Abstracts of Title. Seller must deliver to Buyer copies of any abstracts of title 485 covering all or any portion of the Property(Abstract of Title)in Seller's possession on or before Record Title 486 Deadline. 487 8.2. Record Title. Buyer has the right to review and object to the Abstract of Title or Title 488 489 Commitment and any of the Title Documents as set forth in §8.5 (Right to Object to Title, Resolution) on or 4c)0 CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 7 of 21 CTMeConnacts.com-x:2019 CTM Software Corp. 491 before Record Title Objection Deadline. Buyer's objection may be based on any unsatisfactory form or 49` content of Title Commitment or Abstract of Title, notwithstanding § 13, or any other unsatisfactory title 493 494 condition, in Buyer's sole subjective discretion. If the Abstract of Title, Title Commitment or Title Documents are 49` not received by Buyer on or before the Record Title Deadline, or if there is an endorsement to the Title 496 Commitment that adds a new Exception to title, a copy of the new Exception to title and the modified Title 497 498 Commitment will be delivered to Buyer. Buyer has until the earlier of Closing or ten days after receipt of such 499 documents by Buyer to review and object to: (1)any required Title Document not timely received by Buyer, (2) 500 any change to the Abstract of Title,Title Commitment or Title Documents, or(3)any endorsement to the Title 501 Commitment. If Seller receives Buyer's Notice to Terminate or Notice of Title Objection, pursuant to this§ 8.2 502 5o3 (Record Title), any title objection by Buyer is governed by the provisions set forth in § 8.5(Right to Object to 504 Title, Resolution). If Seller has fulfilled all Seller's obligations, if any, to deliver to Buyer all documents required 505 by§8.1 (Evidence of Record Title)and Seller does not receive Buyer's Notice to Terminate or Notice of Title 506 507 Objection by the applicable deadline specified above, Buyer accepts the condition of title as disclosed by the 508 Abstract of Title, Title Commitment and Title Documents as satisfactory. 509 8.3. Off-Record Title. Seller must deliver to Buyer, on or before Off-Record Title Deadline, true 511 511 copies of all existing surveys in Seller's possession pertaining to the Property Yand must disclose to Buyer all 512 easements, liens (including, without limitation, governmental improvements approved, but not yet installed)or 513 other title matters(including,without limitation, rights of first refusal and options) not shown by public records, 514 of which Seller has actual knowledge (Off-Record Matters). This Section excludes any New ILC or New 515 516 Survey governed under§ 9 (New ILC, New Survey). Buyer has the right to inspect the Property to investigate 517 if any third party has any right in the Property not shown by public records (e.g., unrecorded easement, 518 boundary line discrepancy or water rights). Buyer's Notice to Terminate or Notice of Title Objection of any 519 520 unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding§ 8.2 521 (Record Title)and§ 13(Transfer of Title)), in Buyer's sole subjective discretion, must be received by Seller on 522 or before Off-Record Title Objection Deadline. If an Off-Record Matter is received by Buyer after the 523 524 Off-Record Title Deadline, Buyer has until the earlier of Closing or ten days after receipt by Buyer to review 525 and object to such Off-Record Matter. If Seller receives Buyer's Notice to Terminate or Notice of Title Objection 526 pursuant to this §8.3 (Off-Record Title), any title objection by Buyer is governed by the provisions set forth in § 527 8.5 (Right to Object to Title, Resolution). If Seller does not receive Buyer's Notice to Terminate or Notice of Title 528 529 Objection by the applicable deadline specified above, Buyer accepts title subject to such Off-Record Matters 530 and rights, if any, of third parties not shown by public records of which Buyer has actual knowledge. 531 8.4. Special Taxing Districts. SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO GENERAL 532 533 OBLIGATION INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL TAX LEVIES 534 ON THE TAXABLE PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN SUCH DISTRICTS 535 MAY BE PLACED AT RISK FOR INCREASED MILL LEVIES AND TAX TO SUPPORT THE SERVICING OF 536 537 SUCH DEBT WHERE CIRCUMSTANCES ARISE RESULTING IN THE INABILITY OF SUCH A DISTRICT TO 538 DISCHARGE SUCH INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYERS 539 SHOULD INVESTIGATE THE SPECIAL TAXING DISTRICTS IN WHICH THE PROPERTY IS LOCATED BY 540 CONTACTING THE COUNTY TREASURER, BY REVIEWING THE CERTIFICATE OF TAXES DUE FOR THE 541 542 PROPERTY AND BY OBTAINING FURTHER INFORMATION FROM THE BOARD OF COUNTY 543 COMMISSIONERS, THE COUNTY CLERK AND RECORDER, OR THE COUNTY ASSESSOR. 544 A tax certificate from the respective county treasurer listing any special taxing districts that effect the 545 546 Property(Tax Certificate)must be delivered to Buyer on or before Record Title Deadline. If the Property is 547 located within a special taxing district and such inclusion is unsatisfactory to Buyer, in Buyer's sole subjective 548 discretion, Buyer may object, on or before Record Title Objection Deadline. If the Tax Certificate shows that 549 the Property 1s included in a special taxing district and is received b Buyer after the Record Title Deadline, sso P rtY � P 9 Y Y 551 Buyer has until the earlier of Closing or ten days after receipt by Buyer to review and object to the Property's 552 inclusion in a special taxing district as unsatisfactory to Buyer. 553 8.5. Right to Object to Title, Resolution. Buyers right to object, in Buyer's sole subjective 554 555 discretion, to any title matters includes those matters set forth in §8.2(Record Title), §8.3 (Off-Record Title), § 556 8.4 (Special Taxing District) and § 13 (Transfer of Title). If Buyer objects to any title matter, on or before the 557 applicable deadline, Buyer has the following options: 558 559 8.5.1. Title Objection, Resolution. If Seller receives Buyer's written notice objecting to any `,(In CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 8 of 21 CTMeContracts.com-x2019 CTM Software Corp. 561 title matter(Notice of Title Objection)on or before the applicable deadline and if Buyer and Seller have not 562 563 agreed to a written settlement thereof on or before Title Resolution Deadline, this Contract will terminate on 564 the expiration of Title Resolution Deadline, unless Seller receives Buyer's written withdrawal of Buyer's 565 Notice of Title Objection (i.e., Buyer's written notice to waive objection to such items and waives the Right to S66 56Terminate for that reason), on or before expiration of Title Resolution Deadline. If either the Record Title 568 Deadline or the Off-Record Title Deadline, or both,are extended pursuant to§8.2 (Record Title), §8.3 569 (Off-Record Title)or§8.4 (Special Taxing Districts), the Title Resolution Deadline also will be automatically 570 extended to the earlier of Closing or fifteen days after Buyer's receipt of the applicable documents; or 571 8.5.2. Title Objection, Right to Terminate. Buyer may exercise the Right to Terminate under 572 573 §25.1,on or before the applicable deadline, based on any title matter unsatisfactory to Buyer, in Buyer's sole 574 subjective discretion. 575 8.6. Right of First Refusal or Contract Approval. If there is a right of first refusal on the Property 576 577 or a right to approve this Contract, Seller must promptly submit this Contract according to the terms and 578 conditions of such right. If the holder of the right of first refusal exercises such right or the holder of a right to 579 approve disapproves this Contract, this Contract will terminate. If the right of first refusal is waived explicitly or 580 581 expires, or the Contract is approved, this Contract will remain in full force and effect. Seller must promptly 582 notify Buyer in writing of the foregoing. If expiration or waiver of the right of first refusal or approval of this 583 Contract has not occurred on or before Right of First Refusal Deadline, this Contract will then terminate. 584 8.7. Title Advisory.The Title Documents affect the title, ownership and use of the Property and 585 586 should be reviewed carefully. Additionally, other matters not reflected in the Title Documents may affect the 587 title,ownership and use of the Property, including,without limitation, boundary lines and encroachments, 588 set-back requirements, area, zoning, building code violations, unrecorded easements and claims of 589 590 easements, leases and other unrecorded agreements,water on or under the Property, and various laws and 591 governmental regulations concerning land use, development and environmental matters. 592 8.7.1. OIL, GAS, WATER AND MINERAL DISCLOSURE. THE SURFACE ESTATE OF THE 593 594 PROPERTY MAY BE OWNED SEPARATELY FROM THE UNDERLYING MINERAL ESTATE AND 595 TRANSFER OF THE SURFACE ESTATE MAY NOT NECESSARILY INCLUDE TRANSFER OF THE 596 MINERAL ESTATE OR WATER RIGHTS.THIRD PARTIES MAY OWN OR LEASE INTERESTS IN OIL, GAS, 597 OTHER MINERALS, GEOTHERMAL ENERGY OR WATER ON OR UNDER THE SURFACE OF THE 598 599 PROPERTY,WHICH INTERESTS MAY GIVE THEM RIGHTS TO ENTER AND USE THE SURFACE OF THE 600 PROPERTY TO ACCESS THE MINERAL ESTATE, OIL, GAS OR WATER. 601 8.7.2. SURFACE USE AGREEMENT. THE USE OF THE SURFACE ESTATE OF THE 602 603 PROPERTY TO ACCESS THE OIL, GAS OR MINERALS MAY BE GOVERNED BY A SURFACE USE 604 AGREEMENT,A MEMORANDUM OR OTHER NOTICE OF WHICH MAY BE RECORDED WITH THE 605 COUNTY CLERK AND RECORDER. 606 607 8,7,3. OIL AND GAS ACTIVITY. OIL AND GAS ACTIVITY THAT MAY OCCUR ON OR 608 ADJACENT TO THE PROPERTY MAY INCLUDE, BUT IS NOT LIMITED TO, SURVEYING, DRILLING, 609 WELL COMPLETION OPERATIONS, STORAGE, OIL AND GAS, OR PRODUCTION FACILITIES, 610 PRODUCING WELLS, REWORKING OF CURRENT WELLS AND GAS GATHERING AND PROCESSING 611 612 FACILITIES. 613 8.7.4. ADDITIONAL INFORMATION. BUYER IS ENCOURAGED TO SEEK ADDITIONAL 614 INFORMATION REGARDING OIL AND GAS ACTIVITY ON OR ADJACENT TO THE PROPERTY, 615 616 INCLUDING DRILLING PERMIT APPLICATIONS.THIS INFORMATION MAY BE AVAILABLE FROM THE 617 COLORADO OIL AND GAS CONSERVATION COMMISSION. 618 8.7.5. Title Insurance Exclusions. Matters set forth in this Section and others, may be 619 p 62 excepted, excluded from, or not covered by the owner's title insurance policy. 621 8.8. Consult an Attorney. Buyer is advised to timely consult legal counsel with respect to all such 622 matters as there are strict time limits provided in this Contract(e.g., Record Title Objection Deadline and 623 Off-Record Title Objection Deadline). 624 625 626 9. NEW ILC, NEW SURVEY. 627 9.1. New ILC or New Survey. If the box is checked, a: 1) ❑ New Improvement Location Certificate 628 629 (New ILC); or, 2)®New Survey in the form of an ALTA Survey; is required and the following will apply: 6_0 CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 9 of 21 CTMeContracts.com-C2019 CTM Software Corp. 631 9.1.1. Ordering of New ILC or New Survey.®Seller ❑Buyer will order the New ILC or New 632 Survey, The New ILC or New Survey may also be a previous ILC or survey that is in the above-required form, 633 634 certified and updated as of a date after the date of this Contract. 635 9.1.2. Payment for New ILC or New Survey. The cost of the New ILC or New Survey will be 636 paid, on or before Closing, by:®Seller ❑Buyer or: 637 638 9.1.3. Delivery of New ILC or New Survey. Buyer, Seller, the issuer of the Title Commitment (or 639 the provider of the opinion of title if an Abstract of Title)and Buyers attorney will receive a New ILC or New 640 Survey on or before New ILC or New Survey Deadline. 641 642 9.1.4. Certification of New ILC or New Survey.The New ILC or New Survey will be certified by 643 the surveyor to all those who are to receive the New ILC or New Survey. 644 645 9.2. Buyer's Right to Waive or Change New ILC or New Survey Selection. Buyer may select a 646 New ILC or New Survey different than initially specified in this Contract if there is no additional cost to Seller or 647 change to the New ILC or New Survey Objection Deadline. Buyer may, in Buyer's sole subjective discretion, 648 waive a New ILC or New Survey if done prior to Seller incurring any cost for the same. 649 9.3. New ILC or New Survey Objection. Buyer has the right to review and object to the New ILC or 650 651 New Survey. If the New ILC or New Survey is not timely received by Buyer or is unsatisfactory to Buyer, in 652 Buyer's sole subjective discretion, Buyer may, on or before New ILC or New Survey Objection Deadline, 653 notwithstanding §8.3 or§ 13: 654 655 9.3.1. Notice to Terminate. Notify Seller in writing, pursuant to§25.1, that this Contract is 656 terminated; or 657 9.3.2. New ILC or New Survey Objection. Deliver to Seller a written description of any matter that 658 659 was to be shown or is shown in the New ILC or New Survey that is unsatisfactory and that Buyer requires 660 Seller to correct. 661 9.3.3. New ILC or New Survey Resolution. If a New ILC or New Survey Objection is received 662 by Seller, on or before New ILC or New Survey Objection Deadline and if Buyer and Seller have not agreed 663 664 in writing to a settlement thereof on or before New ILC or New Survey Resolution Deadline, this Contract will 665 terminate on expiration of the New ILC or New Survey Resolution Deadline, unless Seller receives Buyer's 666 written withdrawal of the New ILC or New Survey Objection before such termination, i.e., on or before 667 668 expiration of New ILC or New Survey Resolution Deadline. 669 670 DISCLOSURE, INSPECTION AND DUE DILIGENCE 671 672 673 10. PROPERTY DISCLOSURE, INSPECTION, INDEMNITY, INSURABILITY, DUE DILIGENCE,AND 674 SOURCE OF WATER. 675 676 10.1. Seller's Property Disclosure. On or before Seller's Property Disclosure Deadline , Seller 677 agrees to deliver to Buyer the most current version of the applicable Colorado Real Estate Commission's 678 Seller's Property Disclosure form completed by Seller to Seller's actual knowledge and current as of the date of 679 this Contract. 680 681 10.2. Disclosure of Adverse Material Facts; Subsequent Disclosure; Present Condition. Seller 682 must disclose to Buyer any adverse material facts actually known by Seller as of the date of this Contract. 683 Seller agrees that disclosure of adverse material facts will be in writing. In the event Seller discovers an 684 685 adverse material fact after the date of this Contract, Seller must timely disclose such adverse fact to Buyer. 686 Buyer has the Right to Terminate based on the Seller's new disclosure on the earlier of Closing or five days 687 after Buyer's receipt of the new disclosure. Except as otherwise provided in this Contract, Buyer acknowledges 688 that Seller is conveying the Property to Buyer in an "As Is"condition, "Where Is"and"With All Faults." 689 Y 9 P Y Y 690 10.3. Inspection. Unless otherwise provided in this Contract, Buyer, acting in good faith, has the right 691 to have inspections (by one or more third parties, personally or both)of the Property and Inclusions 692 at Buyer's expense. If 1 the physical condition of the Property, including, but not limited to, the 693 (Inspection), Y P ( ) P Y P rtY, 694 roof, walls, structural integrity of the Property, the electrical, plumbing, HVAC and other mechanical systems of 695 the Property, (2)the physical condition of the Inclusions, (3)service to the Property (including utilities and 696 communication services), systems and components of the Property (e.g., heating and plumbing), (4)any 697 698 proposed or existing transportation project, road, street or highway, or(5)any other activity, odor or noise 699 (whether on or off the Property)and its effect or expected effect on the Property or its occupants is Inn CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 10 of 21 CTMeContracts.com-V,2019 CTM Software Corp. 70, unsatisfactory, in Buyer's sole subjective discretion, Buyer may: 702 10.3.1. Inspection Objection. On or before the Inspection Objection Deadline, deliver to 703 704 Seller a written description of any unsatisfactory condition that Buyer requires Seller to correct; or 70' 10.3.2. Terminate. On or before the Inspection Termination Deadline, notify Seller in writing, 706 pursuant to§25.1, that this Contract is terminated due to any unsatisfactory condition. Inspection 707 Termination Deadline will be on the earlier of Inspection Resolution Deadline or the dates specified in Toa p p § 7o9 3.1 for Inspection Termination Deadline. 710 10.3.3. Inspection Resolution. If an Inspection Objection is received by Seller, on or before 711 712 Inspection Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on 713 or before Inspection Resolution Deadline, this Contract will terminate on Inspection Resolution Deadline 714 unless Seller receives Buyer's written withdrawal of the Inspection Objection before such termination, i.e., on or 715 before expiration of Inspection Resolution Deadline. 716 717 10.4. Damage, Liens and Indemnity. Buyer, except as otherwise provided in this Contract or other 718 written agreement between the parties, is responsible for payment for all inspections, tests, surveys, 719 engineering reports,or other reports performed at Buyer's request(Work)and must pay for any damage that 721 occurs to the Property and Inclusions as a result of such Work. Buyer must not permit claims or liens of any 722 kind against the Property for Work performed on the Property. Buyer agrees to indemnify, protect and hold 723 Seller harmless from and against any liability, damage, cost or expense incurred by Seller and caused by any 724 such Work, claim, or lien. This indemnity includes Seller's right to recover all costs and expenses incurred by 725 726 Seller to defend against any such liability, damage, cost or expense, or to enforce this Section, including 727 Seller's reasonable attomey fees, legal fees and expenses. The provisions of this Section survive the 728 termination of this Contract.This§ 10.4 does not apply to items performed pursuant to an Inspection 729 730 Resolution. 731 10.5. Insurability. Buyer has the right to review and object to the availability, terms and conditions of 732 and premium for property insurance (Property Insurance). Buyer has the Right to Terminate under§ 25.1, on or 733 734 before Property Insurance Termination Deadline, based on any unsatisfactory provision of the Property 735 Insurance, in Buyer's sole subjective discretion. 736 10.6. Due Diligence. 737 10.6.1. Due Diligence Documents. If the respective box is checked, Seller agrees to deliver 738 739 copies of the following documents and information pertaining to the Property (Due Diligence Documents)to 740 Buyer on or before Due Diligence Documents Delivery Deadline: 741 ® 10.6.1.1. All contracts relating to the operation, maintenance and management of the 742 743 Property; 744 ® 10.6.1.2. Property tax bills for the last 3 years; 745 ® 10.6.1.3. As-built construction plans to the Property and the tenant improvements, 746 747 including architectural, electrical, mechanical, and structural systems, engineering reports, and permanent 748 Certificates of Occupancy, to the extent now available; 749 ® 10.6.1.4. A list of all Inclusions to be conveyed to Buyer; 750 751 ® 10.6.1.5. Operating statements for the past 3 years; 752 ® 10.6.1.6. A rent roll accurate and correct to the date of this Contract; 753 ® 10.6.1.7. All current leases, including any amendments or other occupancy 754 agreements, pertaining to the Property. Those leases or other occupancy agreements pertaining to the 755 9 P 9 P Y• P Y 9 P 9 756 Property that survive Closing are as follows (Leases): To be provided by Seller 757 ® 10.6.1.8. A schedule of any tenant improvement work Seller is obligated to complete 7S9but has not yet been completed and capital improvement work either scheduled or in process on the date of 760 this Contract; 761 ® 10.6.1.9. All insurance policies pertaining to the Property and copies of any claims 762 which have been made for the past 5 years; 763 — 764 ® 10.6.1.10. Soils reports, surveys and engineering reports or data pertaining to the 765 Property(if not delivered earlier under§8.3); 766 ® 10.6.1.11. Any and all existing documentation and reports regarding Phase I and II 767 768 environmental reports, letters, test results, advisories and similar documents respective to the existence or 769 nonexistence of asbestos, PCB transformers, or other toxic, hazardous or contaminated substances, and/or -1-2n CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 11 of 21 CTMeContracts.com-C2019 CTM Software Corp. 771 underground storage tanks and/or radon gas. If no reports are in Seller's possession or known to Seller, Seller 772 warrants that no such reports are in Seller's possession or known to Seller; 773 774 ® 10.6.1.12. Any Americans with Disabilities Act reports, studies or surveys concerning 77` the compliance of the Property with said Act; 77b ® 10.6.1.13. All permits, licenses and other building or use authorizations issued by any 777 778 governmental authority with jurisdiction over the Property and written notice of any violation of any such 779 permits, licenses or use authorizations, if any; and 780 ® 10.6.1.14. Other documents and information: 781 Seller shall provide any additional documents reasonably requested by Buyer in their 782 783 possession. 734 785 786 10.6.2. Due Diligence Documents Review and Objection. Buyer has the right to review and 787 object to Due Diligence Documents. If the Due Diligence Documents are not supplied to Buyer or are 788 unsatisfactory, in Buyer's sole subjective discretion, Buyer may, on or before Due Diligence Documents 789 Objection Deadline: 790 791 10.6.2.1. Notice to Terminate. Notify Seller in writing, pursuant to§25.1, that this 792 Contract is terminated; or 793 10.6.2.2. Due Diligence Documents Objection. Deliver to Seller a written description 794 795 of any unsatisfactory Due Diligence Documents that Buyer requires Seller to correct. 796 10.6.2.3. Due Diligence Documents Resolution. If a Due Diligence Documents 797 Objection is received by Seller, on or before Due Diligence Documents Objection Deadline and if Buyer and 79 799 9 9 Seller have nota reed in writingto a settlement thereof on or before Due Diligence Documents Resolution Boo Deadline,this Contract will terminate on Due Diligence Documents Resolution Deadline unless Seller 801 receives Buyer's written withdrawal of the Due Diligence Documents Objection before such termination, i.e., on 802 or before expiration of Due Diligence Documents Resolution Deadline. 803 804 10.6.3. Zoning. Buyer has the Right to Terminate under§ 25.1, on or before Due Diligence 805 Documents Objection Deadline, based on any unsatisfactory zoning and any use restrictions imposed by any 806 governmental agency with jurisdiction over the Property, in Buyer's sole subjective discretion. 807 808 10.6.4. Due Diligence—Environmental,ADA. Buyer has the right to obtain environmental 809 inspections of the Property including Phase I and Phase II Environmental Site Assessments, as applicable. ❑ 810 Seller®Buyer will order or provide ElPhase I Environmental Site Assessment, 1:1Phase II 812 Environmental Site Assessment(compliant with most current version of the applicable ASTM E1527 813 standard practices for Environmental Site Assessments) and/or❑ , at the expense of❑Seller®Buyer 814 (Environmental Inspection). In addition, Buyer,at Buyer's expense, may also conduct an evaluation whether 815 816 the Property complies with the Americans with Disabilities Act(ADA Evaluation).All such inspections and 817 evaluations must be conducted at such times as are mutually agreeable to minimize the interruption of Seller's 818 and any Seller's tenants' business uses of the Property, if any. 819 If Buyer's Phase I Environmental Site Assessment recommends a Phase II Environmental Site 820 821 Assessment, the Environmental Inspection Termination Deadline will be extended by days (Extended 822 Environmental Inspection Objection Deadline)and if such Extended Environmental Inspection Objection 823 Deadline extends beyond the Closing Date, the Closing Date will be extended a like period of time. In such 824 325 event, ❑Seller®Buyer must pay the cost for such Phase II Environmental Site Assessment. 826 Notwithstanding Buyer's right to obtain additional environmental inspections of the Property in this § 827 10.6.4, Buyer has the Right to Terminate under§25.1, on or before Environmental Inspection Termination 828 829 Deadline, or if applicable, the Extended Environmental Inspection Objection Deadline, based on any 830 unsatisfactory results of Environmental Inspection, in Buyer's sole subjective discretion. 831 Buyer has the Right to Terminate under§25.1, on or before ADA Evaluation Termination Deadline, 832 833 based on any unsatisfactory ADA Evaluation, in Buyer's sole subjective discretion. 834 10.7. Conditional Upon Sale of Property.This Contract is conditional upon the sale and closing of 835 that certain property owned by Buyer and commonly known as N/A. Buyer has the Right to Terminate under§ 836 337 25.1 effective upon Seller's receipt of Buyer's Notice to Terminate on or before Conditional Sale Deadline if 838 such property is not sold and closed by such deadline. This Section is for the sole benefit of Buyer. If Seller 839 does not receive Buyer's Notice to Terminate on or before Conditional Sale Deadline, Buyer waives any Right S40 CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 12 of 21 CTMeContracts.com-C2019 CTM Software Corp. 841 to Terminate under this provision. 8`1` 10.8. Source of Potable Water(Residential Land and Residential Improvements Only). 843 844 [intentionally Deleted] 84', 10.9. Existing Leases; Modification of Existing Leases; New Leases. Seller states that none of 846 the Leases to be assigned to the Buyer at the time of Closing contain any rent concessions, rent reductions or 847 848 rent abatements except as disclosed in the Lease or other writing received by Buyer. 849 850 WffithgWt 11;@ p0Q;;_AXit1@p Gop6@p%9f 061y@r, Ash6ch GnAsaRt;A0611 pot.be 1_,pFaa6QAably withheld Q;delay 851 852 853 11.1. Estoppel Statements Conditions. Buyer has the right to review and object to any Estoppel 854 Statements. 855 856 857 858 64atiag; 859 11.1.1. The commencement date of the Lease and scheduled termination date of the Lease; 860 861 11,1,2, That said Lease is in full force and effect and that there have been no subsequent 862 modifications or amendments; 863 11.1.3. The amount of any advance rentals paid, rent concessions given, and deposits paid to 864 Seller; 865 866 11.1.4. The amount of monthly (or other applicable period) rental paid to Seller; 867 11.1.5. That there is no default under the terms of said Lease by landlord or occupant; and 868 11.1.6. That the Lease to which the Estoppel Statement is attached is a true, correct and 869 870 complete copy of the Lease demising the premises it describes. 871 11.2. Seller Estoppel Statements. 872 12goperty a Gomplailed sigped Esloppal StatOMOA1, Seller agrees to complete and execute an Estoppel 873 874 Statement setting forth the information and documents required §11.1 above and deliver the same to Buyer on 875 or before Estoppel Statements Deadline. 876 11.3. Estoppel Statements Termination. Buyer has the Right to Terminate under§ 25.1, on or 877 before Estoppel Statements Termination Deadline, based on any unsatisfactory Estoppel Statement, in 878 879 Buyer's sole subjective discretion, or if Seller fails to deliver the Estoppel Statements on or before Estoppel 880 Statements Deadline. Buyer also has the unilateral right to waive any unsatisfactory Estoppel Statement. 881 882 883 CLOSING PROVISIONS 884 886 12. CLOSING DOCUMENTS, INSTRUCTIONS AND CLOSING. 887 12.1. Closing Documents and Closing Information. Seller and Buyer will cooperate with the Closing 888 Company to enable the Closing Company to prepare and deliver documents required for Closing to Buyer and 889 890 Seller and their designees. If Buyer is obtaining a loan to purchase the Property, Buyer acknowledges Buyer's 891 lender is required to provide the Closing Company, in a timely manner, all required loan documents and 892 financial information concerning Buyer's loan. Buyer and Seller will furnish any additional information and 893 documents required by Closing Company that will be necessary to complete this transaction. Buyer and Seller 894 895 will sign and complete all customary or reasonably-required documents at or before Closing. 896 12.2. Closing Instructions. Colorado Real Estate Commission's Closing Instructions ❑Are ®Are 898 Not executed with this Contract. B99 12.3. Closing. Delivery of deed from Seller to Buyer will be at closing (Closing). Closing will be on the 900 date specified as the Closing Date or by mutual agreement at an earlier date. The hour and place of Closing 901 will be as designated by Title Company. 902 903 12.4. Disclosure of Settlement Costs. Buyer and Seller acknowledge that costs, quality and extent of 904 service vary between different settlement service providers (e.g., attorneys, lenders, inspectors and title 905 companies). 906 907 908 909 "IIn CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 13 of 21 CTMeContracts.COm-( 2019 CTM Software Corp. 911 13. TRANSFER OF TITLE. Subject to Buyer's compliance with the terms and provisions of this Contract, 91, including the tender of any payment due at Closing, Seller must execute and deliver the following good and 913 914 sufficient deed to Buyer, at Closing: 915 916 ®special warranty deed ❑ general warranty deed ❑ bargain and sale deed ❑ quit claim deed ❑ personal 917 918 representative's deed ❑ deed. Seller, provided another deed is not selected, must execute and deliver a good 919 and sufficient special warranty deed to Buyer, at Closing. 920 Unless otherwise specified in §30 (Additional Provisions), if title will be conveyed using a special 921 warranty deed or general warranty deed, title will be conveyed"subject to statutory exceptions" as defined in 922 ty 9 ty Y 1 ry P 923 §38-30-113(5)(a), C.R.S. 924 925 14. PAYMENT OF LIENS AND ENCUMBRANCES. Unless agreed to by Buyer in writing, any amounts 926 927 owed on any liens or encumbrances securing a monetary sum, including, but not limited to, any governmental 928 liens for special improvements installed as of the date of Buyer's signature hereon,whether assessed or not 929 and previous years'taxes,will be paid at or before Closing by Seller from the proceeds of this transaction or 930 931 from any other source. 932 934 15. CLOSING COSTS, CLOSING FEE,ASSOCIATION FEES AND TAXES. 935 15.1. Closing Costs. Buyer and Seller must pay, in Good Funds, their respective closing costs 936 and all other items required to be paid at Closing, except as otherwise provided herein. 937 15.2. Closin Services Fee. The fee for real estate closing services must be paid at Closing by 938 ❑ Buyer ❑ Seller One-Half by Buyer and One-Half by Seller 939 940 ❑Other 941 15.3. Status Letter and Record Change Fees. At least fourteen days prior to Closing Date, 942 Seller agrees to promptly request the Association to deliver to Buyer a current Status Letter. Any fees incident 943 944 to the issuance of Association's Status Letter must be paid by ❑None ❑Buyer®Seller❑One-Half by 945 Buyer and One-Half by Seller. Any Record Change Fee must be paid by ❑ None ❑ Buyer ®Seller 946 ❑ One-Half by Buyer and One-Half by Seller . 947 948 15.4. Local Transfer Tax. ❑ The Local Transfer Tax of % of the Purchase Price must 949 be paid at Closing by®None ❑ Buyer ❑ Seller ❑ One-Half by Buyer and One-Half by Seller. 950 15.5. Private Transfer Fee. Private transfer fees and other fees due to a transfer of the Property, 951 952 payable at Closing, such as community association fees, developer fees and foundation fees, must be paid at 953 Closing by®None ❑Buyer❑Seller ❑One-Half by Buyer and One-Half by Seller.The Private Transfer 954 fee, whether one or more, is for the following association(s): in the total amount of% of the Purchase Price or 955 956 $ 957 15.6. Watertransfer Fees. The Water Transfer Fees can change. The fees, as of the date of 958 this Contract, do not exceed $for: 959 960 ❑Water Stock/Certificates ❑Water District 961 ❑Augmentation Membership ❑ Small Domestic Water Company❑ and must be paid at Closing by 962 None ❑Buyer ❑Seller ❑One-Half by Buyer and One-Half by Seller 963 964 15.7. Sales and Use Tax. Any sales and use tax that may accrue because of this transaction 965 must be paid when due by®None ❑Buyer❑Seller❑ One-Half by Buyer and One-Half by Seller. 966 15.8. FIRPTA and Colorado Withholding. 967 968 15.8.1. FIRPTA. The Internal Revenue Service (IRS) may require a substantial portion of 969 the Seller's proceeds be withheld after Closing when Seller is a foreign person. If required withholding does not 970 occur,the Buyer could be held liable for the amount of the Seller's tax, interest and penalties. If the box in this 971 972 Section is checked, Seller represents that Seller ❑IS a foreign person for purposes of U.S. income taxation. If 973 the box in this Section is not checked, Seller represents that Seller is not a foreign person for purposes of U.S. 974 income taxation. Seller agrees to cooperate with Buyer and Closing Company to provide any reasonably 975 requested documents to verity Seller's foreign person status. If withholding is required, Seller authorizes 976 977 Closing Company to withhold such amount from Seller's proceeds. Seller should inquire with Seller's tax 978 advisor to determine if withholding applies or if an exemption exists. 979 CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 14 of 21 CTMeContracts.com-x'2019 CTM Software Corp. 981 15.8.2. Colorado Withholding. The Colorado Department of Revenue may require a 9821portion of the Seller's proceeds be withheld after Closing when Seller will not be a Colorado resident after 983 984 Closing, if not otherwise exempt. Seller agrees to cooperate with Buyer and Closing Company to provide any 98- reasonably requested documents to verify Seller's status. If withholding is required, Seller authorizes Closing 986 Company to withhold such amount from Seller's proceeds. Seller should inquire with Seller's tax advisor to 987 988 determine if withholding applies or if an exemption exists. 989 990 16. PRORATIONS AND ASSOCIATION ASSESSMENT. The following will be prorated to the Closing 991 Date, except as otherwise provided: 992 993 16.1. Taxes. Personal property taxes, if any, special taxing district assessments, if any and 994 general real estate taxes for the year of Closing, based on ❑Taxes for the Calendar Year Immediately 995 Preceding Closing ®Most Recent Mill Levy and Most Recent Assessed Valuation, adjusted by any 996 997 applicable qualifying seniors property tax exemption, qualifying disabled veteran exemption or ❑Other . 998 16.2. Rents. Rents based on ®Rents Actually Received ❑Accrued.At Closing, Seller will 999 transfer or credit to Buyer the security deposits for all Leases assigned, or any remainder after lawful 1000 1001 deductions and notify all tenants in writing of such transfer and of the transferee's name and address. Seller 1002 must assign to Buyer all Leases in effect at Closing and Buyer must assume Seller's obligations under such 1003 Leases. 1004 1005 16.3. Association Assessments. Current regular Association assessments and dues 1006 (Association Assessments) paid in advance will be credited to Seller at Closing. Cash reserves held out of the 1007 regular Association Assessments for deferred maintenance by the Association will not be credited to Seller 1008 except as may be otherwise provided by the Governing Documents. Buyer acknowledges that Buyer may be 1009 1010 obligated to pay the Association, at Closing, an amount for reserves or working capital.Any special 1011 assessment assessed prior to Closing Date by the Association will be the obligation of❑Buyer ®Seller. 1012 Except however, any special assessment by the Association for improvements that have been installed as of 1013 1014 the date of Buyer's signature hereon, whether assessed prior to or after Closing,will be the obligation of Seller. 1015 Seller represents there are no unpaid regular or special assessments against the Property except the current 1016 regular assessments and . Association Assessments are subject to change as provided in the Governing 1017 1018 Documents. 1019 16.4. Other Prorations.Water and sewer charges, propane, interest on continuing loan and any 1020 ongoing services or utilities. 1021 1021 16.5. Final Settlement. Unless otherwise agreed in writing, these prorations are final. 1023 1024 17 POSSESSION. Possession of the Property will be delivered to Buyer on Possession Date at 1025 1026 Possession Time, subject to the Leases as set forth in § 10.6.1.7. 1027 1028 If Seller, after Closing, fails to deliver possession as specified, Seller will be subject to eviction and 1029 will be additional) liable to Buyer for payment of$ 1,000.00 per da or an 1030 y Y P Y P Y ( y part of a day notwithstanding § 1031 18.1)from Possession Date and Possession Time until possession is delivered. 1032 1033 GENERAL PROVISIONS 1034 1035 1036 18. DAY; COMPUTATION OF PERIOD OF DAYS, DEADLINE. 1037 18,1. Day.As used in this Contract,the term"day" means the entire day ending at 11:59 p.m., United 1038 1039 States Mountain Time (Standard or Daylight Savings, as applicable). 1040 18.2. Computation of Period of Days, Deadline. In computing a period of days (e.g., three days after 1041 MEC), when the ending date is not specified, the first day is excluded and the last day is included. If any 1042 1043 deadline falls on a Saturday, Sunday or federal or Colorado state holiday(Holiday), such deadline Owin ❑ 1044 Will Not be extended to the next day that is not a Saturday, Sunday or Holiday. Should neither box be 1045 checked, the deadline will not be extended. 1046 1047 1048 19. CAUSES OF LOSS, INSURANCE; DAMAGE TO INCLUSIONS AND SERVICES; CONDEMNATION; 1049 AND WALK-THROUGH. Except as otherwise provided in this Contract, the Property, Inclusions or both will be 1 n';(; CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 15 of 21 CTMecontracis.com-f2019 CTM Software Corp. 1051 delivered in the condition existing as of the date of this Contract, ordinary wear and tear excepted. 1052 19.1. Causes of Loss, Insurance. In the event the Property or Inclusions are damaged by fire, other 1053 1054 Perils or causes of loss prior to Closing (Property Damage)in an amount of not more than ten percent of the 1055 total Purchase Price and if the repair of the damage will be paid by insurance (other than the deductible to be 1056 paid by Seller),then Seller, upon receipt of the insurance proceeds,will use Seller's reasonable efforts to 1057 repair the Property before Closing Date. Buyer has the Right to Terminate under 25.1, on or before Closing 1058 p P Y 9 Y 9 § 9 1059 Date, if the Property is not repaired before Closing Date, or if the damage exceeds such sum. Should Buyer 1060 elect to carry out this Contract despite such Property Damage, Buyer is entitled to a credit at Closing for all 1061 insurance proceeds that were received by Seller(but not the Association, if any) resulting from damage to the 1062 1063 Property and Inclusions, plus the amount of any deductible provided for in the insurance policy. This credit may 1064 not exceed the Purchase Price. In the event Seller has not received the insurance proceeds prior to Closing, 1065 the parties may agree to extend the Closing Date to have the Property repaired prior to Closing or, at the 1066 1067 option of Buyer, (1)Seller must assign to Buyer the right to the proceeds at Closing, if acceptable to Seller's 1068 insurance company and Buyer's lender; or(2)the parties may enter into a written agreement prepared by the 1069 parties or their attorney requiring the Seller to escrow at Closing from Seller's sale proceeds the amount Seller 1071 1071 has received and will receive due to such damage, not exceeding the total Purchase Price, plus the amount of 1072 any deductible that applies to the insurance claim. 1073 19.2. Damage, Inclusions and Services. Should any Inclusion or service (including utilities and 1074 communication services), system, component or fixture of the Property collective) Service e. heating or 1075 ) Y P P Y( Y ) ( 9 . 9 1076 plumbing), fail or be damaged between the date of this Contract and Closing or possession, whichever is 1077 earlier, then Seller is liable for the repair or replacement of such Inclusion or Service with a unit of similar size, 1078 age and quality, or an equivalent credit, but only to the extent that the maintenance or replacement of such 1079 1081 Inclusion or Service is not the responsibility of the Association, if any, less any insurance proceeds received by 1081 Buyer covering such repair or replacement. If the failed or damaged Inclusion or Service is not repaired or 1082 replaced on or before Closing or possession,whichever is earlier, Buyer has the Right to Terminate under§ 1083 1084 25.1, on or before Closing Date, or, at the option of Buyer, Buyer is entitled to a credit at Closing for the repair 1085 or replacement of such Inclusion or Service. Such credit must not exceed the Purchase Price. If Buyer receives 1086 such a credit, Seller's right for any claim against the Association, if any,will survive Closing. 1087 19.3. Condemnation. In the event Seller receives actual notice prior to Closing that a pending 1088 1089 condemnation action may result in a taking of all or part of the Property or Inclusions, Seller must promptly 1090 notify Buyer, in writing, of such condemnation action. Buyer has the Right to Terminate under§ 25.1, on or 1091 before Closing Date, based on such condemnation action, in Buyer's sole subjective discretion. Should Buyer 1092 1093 elect to consummate this Contract despite such diminution of value to the Property and Inclusions, Buyer is 1094 entitled to a credit at Closing for all condemnation proceeds awarded to Seller for the diminution in the value of 1095 the Property or Inclusions but such credit will not include relocation benefits or expenses, or exceed the 1096 1097 purchase Price. 1098 19.4. Walk-Through and Verification of Condition. Buyer, upon reasonable notice, has the right to 1099 Walk through the Property prior to Closing to verify that the physical condition of the Property and Inclusions 1110 complies with this Contract. 1101 P 1102 1103 20. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this Contract, Buyer and Seller 1104 acknowledge that the respective broker has advised that this Contract has important legal consequences and 1105 1106 has recommended the examination of title and consultation with legal and tax or other counsel before signing 1107 this Contract. 1108 1109 1110 21 TIME OF ESSENCE, DEFAULT AND REMEDIES. Time is of the essence for all dates and deadlines 1111 in this Contract. This means that all dates and deadlines are strict and absolute. If any payment due, including 1112 Earnest Money, is not paid, honored or tendered when due, or if any obligation is not performed timely as 1113 1114 provided in this Contract or waived,the non-defaulting party has the following remedies: 1115 21.1. If Buyer is in Default: 1116 ❑ 21.1.1. Specific Performance. Seller may elect to cancel this Contract and all Earnest 1117 Money(whether or not paid by Buyer)will be paid to Seller and retained by Seller. It is agreed that the Earnest 1118 1119 Money is not a penalty and the Parties agree the amount is fair and reasonable. Seller may recover such CBS 3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 16 of 21 CTMeContracts.com-x'2019 CTM Software Corp. 1121 additional damages as may be proper.Alternatively, Seller may elect to treat this Contract as being in full force 1122 and effect and Seller has the right to specific performance or damages, or both. 1123 1124 21.1.2. Liquidated Damages, Applicable. This § 21.1.2 applies unless the box in §21.1.1. 1125 is checked. Seller may cancel this Contract. All Earnest Money(whether or not paid by Buyer)will be paid to 1126 Seller and retained by Seller. It is agreed that the Earnest Money specified in §4.1 is LIQUIDATED DAMAGES 1127 1128 and not a penalty,which amount the parties agree is fair and reasonable and (except as provided in §§ 10.4, 1129 22, 23 and 24), said payment of Earnest Money is SELLER'S ONLY REMEDY for Buyer's failure to perform 1130 the obligations of this Contract. Seller expressly waives the remedies of specific performance and additional 1131 damages. 1132 1133 21.2. If Seller is in Default: Buyer may elect to treat this Contract as canceled, in which case all 1134 Earnest Money received hereunder will be returned to Buyer and Buyer may recover such damages as may be 1135 proper. Alternatively, Buyer may elect to treat this Contract as being in full force and effect and Buyer has the 1136 1137 right to specific performance or damages, or both. 1138 1139 22. LEGAL FEES, COST AND EXPENSES. Anything to the contrary herein notwithstanding, in the event 1140 of an arbitration or litigation relating to this Contract, prior to or after Closing Date,the arbitrator or court must 1141 Y 9 9 P 9 1142 award to the prevailing party all reasonable costs and expenses, including attorney fees, legal fees and 1143 expenses. 1144 1145 1146 1147 1148 1149 1150 1151 1152 1153 1154 1155 1156 1157 1158 1159 Q#40'16929F000I� 1160 1161 24. EARNEST MONEY DISPUTE. Except as otherwise provided herein, Earnest Money Holder must 1162 1163 release the Earnest Money following receipt of written mutual instructions, signed by both Buyer and Seller. In 1164 the event of any controversy regarding the Earnest Money, Earnest Money Holder is not required to release the 1165 Earnest Money. Earnest Money Holder, in its sole subjective discretion, has several options: (1)wait for any 1166 proceeding between Buyer and Seller; 2 interplead all parties and deposit Earnest Mone into a court of 1167 P 9 Y ( )� P P P Y 1168 competent jurisdiction (Earnest Money Holder is entitled to recover court costs and reasonable attorney and 1169 legal fees incurred with such action); or(3)provide notice to Buyer and Seller that unless Earnest Money 1170 Holder receives a copy of the Summons and Complaint or Claim (between Buyer and Seller)containing the 1171 1172 case number of the lawsuit(Lawsuit)within one hundred twenty days of Earnest Money Holder's notice to the 1173 parties, Earnest Money Holder is authorized to return the Earnest Money to Buyer. In the event Earnest Money 1174 Holder does receive a copy of the Lawsuit and has not interpled the monies at the time of any Order, Earnest 1175 1176 Money Holder must disburse the Earnest Money pursuant to the Order of the Court. 1177 This Section will survive cancellation or termination of this Contract. 1178 1179 1180 25 TERMINATION. 1181 25.1. Right to Terminate. If a party has a right to terminate, as provided in this Contract (Right to 1182 Terminate), the termination is effective upon the other party's receipt of a written notice to terminate (Notice to 1183 Terminate), provided such written notice was received on or before the applicable deadline specified in this 1184 1185 Contract. If the Notice to Terminate is not received on or before the specified deadline, the party with the Right 1186 to Terminate accepts the specified matter, document or condition as satisfactory and waives the Right to 1187 Terminate under such provision. 1188 1189 25.2.'Effect of Termination. In the event this Contract is terminated, all Earnest Money received CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 17 of 21 CTMeContracts.com-C',2019 CTM Software Corp. hereunder will be returned to Buyer and the parties are relieved of all obligations hereunder, subject to§§ 10.4, 22, 23 and 24. 26. ENTIRE AGREEMENT, MODIFICATION,SURVIVAL; SUCCESSORS. This Contract, its exhibits and specified addenda, constitute the entire agreement between the parties relating to the subject hereof and any prior agreements pertaining thereto,whether oral or written, have been merged and integrated into this Contract. No subsequent modification of any of the terms of this Contract is valid, binding upon the parties, or enforceable unless made in writing and signed by the parties. Any right or obligation in this Contract that, by its terms, exists or is intended to be performed after termination or Closing survives the same. Any successor to a party receives the predecessor's benefits and obligations of this Contract. 27. NOTICE, DELIVERY AND CHOICE OF LAW. 27.1. Physical Delivery and Notice. Any document, or notice to Buyer or Seller must be in writing, except as provided in § 27.2 and is effective when physically received by such party, any individual named in this Contract to receive documents or notices for such party, Broker, or Brokerage Firm of Broker working with such party(except any notice or delivery after Closing must be received by the party, not Broker or Brokerage Firm). 27.2. Electronic Notice. As an alternative to physical delivery, any notice, may be delivered in electronic form to Buyer or Seller, any individual named in this Contract to receive documents or notices for such party, Broker or Brokerage Firm of Broker working with such party (except any notice or delivery after Closing must be received by the party, not Broker or Brokerage Firm)at the electronic address of the recipient by facsimile, email or . 27.3. Electronic Delivery. Electronic Delivery of documents and notice may be delivered by: (1) email at the email address of the recipient, resiFiept• 27.4. Choice of Law. This Contract and all disputes arising hereunder are governed by and construed in accordance with the laws of the State of Colorado that would be applicable to Colorado residents who sign a contract in Colorado for real property located in Colorado. 28. NOTICE OF ACCEPTANCE, COUNTERPARTS.This proposal will expire unless accepted in writing, by Buyer and Seller, as evidenced by their signatures below and the offering party receives notice of such acceptance pursuant to§27 on or before Acceptance Deadline Date and Acceptance Deadline Time. If accepted,this document will become a contract between Seller and Buyer. A copy of this Contract may be executed by each party, separately and when each party has executed a copy thereof, such copies taken together are deemed to be a full and complete contract between the parties. 29. GOOD FAITH. Buyer and Seller acknowledge that each party has an obligation to act in good faith including, but not limited to, exercising the rights and obligations set forth in the provisions of Financing Conditions and Obligations; Title Insurance, Record Title and Off-Record Title; New ILC, New Survey; and Property Disclosure, Inspection, Indemnity, Insurability, Due Diligence and Source of Water. ADDITIONAL PROVISIONS AND ATTACHMENTS 30. ADDITIONAL PROVISIONS. (The following additional provisions have not been approved by the Colorado Real Estate Commission.) A. The language contained in this section has not been approved by the Colorado Real Estate Commission. It was prepared by Aspen Snowmass Sotheby's International Realty. B. Regarding Paragraph 2.2, No Assignability: This paragraph is hereby deleted. This Contract shall be assignable by Buyer without prior agreement of Seller. C. Regarding Paragraph 9.1, NEW SURVEY.• On or before the New Survey Deadline, Seller shall CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 18 of 21 CTMeContracts.com-x:2019 CTM Software Corp. provide to Buyer, at Seller's expense, four(4) copies of a current ALTA Survey prepared by a licensed surveyor(the "New Survey) within six (6) months of the date of this Contract. The New Survey shall be certified to Seller, Buyer, the Title Company, and any lender designated by Buyer as reasonably requested by Buyer. The corners of the Property shall be staked and flagged on the day the New Survey is undertaken. Seller shall notify Buyer when the staking has been completed. Buyer shall have until the New Survey Objection Deadline to review and approve the matters revealed by the New Survey. If, on or before the New Survey Objection Deadline, Buyer notifies Seller or Broker in writing of their dissatisfaction regarding the New Survey, and the parties cannot come to an acceptable resolution by the New Survey Resolution Deadline, then this Contract shall be terminated and considered null and void, and any earnest monies paid hereunder and all interest earned thereon shall be immediately returned to the Buyer. D. Seller shall provide Buyer with a current rent roll prior to the Due Diligence Documents Delivery Deadline. E. The Seller shall provide the Buyer a template of the lease that each new tenant enters into upon the rental of a unit("Lease Template") within three(3) days of MEC. Buyer shall have three (3) days to approve the Lease Template which shall be used for all rentals until the Closing Date. Seller shall have the right to enter into new leases using the approved Lease Template until the Closing Date. Buyer shall approve any deviations from the Lease Template within three (3) days of any written request for a deviation by the Seller. Seller shall provide a monthly report to Seller on any change in status of the tenants. F. The Buyer shall have until thirty(30) days after MEC to obtain Aspen City Council approval of the Contract. In the event the Contract is approved by the Aspen City Council then Buyer shall provide written notice to Seller on or before thirty(31) days after MEC. If the Contract is not approved by Aspen City Council or Buyer does not provide Seller written notice of the approval on or before thirty(31) days after MEC then the Contract shall be considered terminated and all earnest money shall be returned to the Buyer. G. Seller shall assign all of the existing leases for the storage units and shall make representations and warranties as to the status of each of the leases on the units including providing the information under Section 11.1.1 through 11.1.6. H. Buyer shall receive a credit for all pre-paid accounts prorated to Closing; Buyer shall credit the Seller 100% for all accounts that are in arrears thirty(30) days or less, and there shall be no credit to the Seller for accounts in arrears greater than thirty(30) days. 1. Any Notice provided by Buyer to Seller under this Contract shall also be required to be provided to Seller's attorneys, Richard A. Knezevich and Sarah M. Oates at the following addresses: Oates, Knezevich, Gardenswartz, Kelly& Morrow, P.C. 533 East Hopkins Avenue, Third Floor Aspen, CO 81611 Phone:970-920-1700 Fax:970-920-1121 rak@okglaw.com smo@okglaw.com CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 19 of 21 CTMeContracts.com-cc2019 CTM Software Corp. 31. ATTACHMENTS. 31.1. The following documents are a part of this Contract: A. Residential Addendum to Contract to Buy and Sell Real Estate 31.2. The following documents have been provided but are not a part of this Contract: SIGNATURES - Date: Z q Buyer: Clty ofAspen By: Sara Ott, City Manager [NOTE: If th' offer is being countered or rejected, do not sign this do/current. v Date: Seller: Aspen Mini-Storage, LLC By: Susan V. Clark, Manager END OF CONTRACT TO BUY AND SELL REAL ESTATE 32. BROKER'S ACKNOWLEDGMENTS AND COMPENSATION DISCLOSURE. (To be completed by Broker working with Buyer) Broker ❑ Does ® Does Not acknowledge receipt of Earnest Money deposit. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in § 24, if the Earnest Money has not already been returned following receipt of a Notice to Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder's receipt of the executed written mutual instructions, provided the Earnest Money check has cleared. Although Broker is not a party to the Contract, Broker agrees to cooperate, upon request, with any mediation requested under§23. Broker is working with Buyer as a ❑ Buyer's Agent ® Transaction-Broker in this transaction. ❑This is a Change of Status ❑Customer. Broker has no brokerage relationship with Buyer. See§33 for Broker's brokerage relationship with Seller. Brokerage Firm's compensation or commission is to be paid by ❑ Listing Brokerage®Buyer ❑Other . Brokerage Firm's Name: Aspen Snowmass Sotheby's International Realty Brokerage Firm's License#: �Il Date: 9/20/2019 Broker's Name: Andrew Ernemann CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 20 of 21 CTMeContracts.corn-0-2019 CTM Software Corp. Broker's License* 100028587 Address: 415 East Hyman Avenue Aspen, CO 81611 Ph: 970-379-8125 Fax: 888-550-2881 Email Address: andrew.ernemann@sothebysrealty.com 33. BROKER'S ACKNOWLEDGMENTS AND COMPENSATION DISCLOSURE. (To be completed by Broker working with Seller) Broker ❑ Does ®Does Not acknowledge receipt of Earnest Money deposit. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in §24, if the Earnest Money has not already been returned following receipt of a Notice to Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder's receipt of the executed written mutual instructions, provided the Earnest Money check has cleared. Although Broker is not a party to the Contract, Broker agrees to cooperate, upon request,with any mediation requested under§23. Broker is working with Seller as a ❑ Seller's Agent ® Transaction-Broker in this transaction. ❑This is a Change of Status. ❑ Customer. Broker has no brokerage relationship with Seller. See§32 for Broker's brokerage relationship with Buyer. Brokerage Firm's compensation or commission is to be paid by ❑ Seller®Buyer❑ Other . Brokerage Firm's Name: Aspen Snowmass Sothebys International Realty Brokerage Firm's License#: EC 100038598 Broker's Name: Date: 9/20/2019 Broker's License#: 100028587 Address: 415 East Hyman Avenue Aspen, CO 81611 Ph: 970-925-6060 Fax: 888-550-2881 Email Address: andrew.ernemann@sothebysrealty.com CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) CTM eContracts - <i!2016 CTM Software Curb CBS3-5-19. CONTRACT TO BUY AND SELL REAL ESTATE- Commercial Page 21 of 21 CTMeContracts.com-V2019 CTM Software Corp. I Aspen Snowmass Sotheby's International Realty 2 Aspen Sothebys 415 East Hyman Avenue Aspen, CO 81611 3 Snowmass *1— ... •F- Andrew Ernemann andrew.ernemann@sotheb srealt com 4 Y Y� 5 Ph: 970-379-8125 Fax: 888-550-2881 6 The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate 7 Commission. RA33-10-18 Mandato 1-19 8 9 THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT 10 LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING. 11 12 RESIDENTIAL ADDENDUM 13 TO CONTRACT TO BUY AND SELL REAL ESTATE 14 15 16 Date: 9/20/2019 17 I8 19 1. ADDENDUM TO CONTRACT TO BUY AND SELL REAL ESTATE. This Residential Addendum 20 21 (Addendum) is made a part of the following contract that is checked: 2' ❑Contract to Buy and Sell Real Estate(Land)between Seller and Buyer(Contract) 23 dated relating to the sale of the Property, or; 24 ®Contract to Buy and Sell Real Estate(Commercial) between Seller and Buyer(Contract)dated 25 9/20/2019 relating to the sale of the Property 26 27 28 known as 105 Aspen Airport Business Center, Aspen, CO 81611(Property). 29 30 This Addendum shall control in the event of any conflict with the Contract. Except as modified, all other 31 32 terms and provisions of the Contract shall remain the same.Terms used herein shall have the same 33 meaning as in the Contract. 34 35 2. PURPOSE. 36 The Property contains, in part, one or more residences but the Contract does not contain required 37 provisions that are set forth in this Addendum. The Contract provisions are added or amended as follows: 38 39 4.5.3. Loan Limitations. Bu er may purchase the Property using any of the following types of 40 loan: ®Conventional®FHA®VA Bond Other TBD. 41 4.5.4. Loan Estimate—Monthly Payment and Loan Costs. Buyer is advised to review the 42 terms,conditions and costs of Buyer's New Loan carefully. If Buyer is applying for a residential loan, the 43 lender generally must provide Buyer with a Loan Estimate within three days after Buyer completes a loan 44 45 application. Buyer also should obtain an estimate of the amount of Buyer's monthly mortgage payment. 46 6.2.2. FHA. It is expressly agreed that, notwithstanding any other provisions of this Contract, 47 the purchaser(Buyer)shall not be obligated to complete the purchase of the Property described herein or 48 to incur any penalty by forfeiture of Earnest Money deposits or otherwise unless the purchaser(Buyer)has 49 been given, in accordance with HUD/FHA or VA requirements, a written statement issued by the Federal 50 51 Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender, setting forth the 52 appraised value of the Property of not less than $ . The Purchaser(Buyer)shall have the privilege and 53 option of proceeding with the consummation of this Contract without regard to the amount of the appraised 54 valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of 55 Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the 56 57 Property. The purchaser(Buyer)should satisfy himself/herself that the price and condition of the Property 58 are acceptable. 59 6.2.3. VA. It is expressly agreed that, notwithstanding any other provisions of this Contract, 60 the purchaser(Buyer)shall not incur any penalty by forfeiture of Earnest Money or otherwise or be 61 obligated to complete the purchase of the Property described herein, if the Contract Purchase Price or cost 62 63 exceeds the reasonable value of the Property established by the Department of Veterans Affairs, The RA33-10-I8. RESIDENTIAL ADDENDUM TO CONTRACT TO BUY AND SELL REAL ESTATE Page I of 3 CTMeContracts.com-x'2019 CTM Software Corp. 64 purchaser(Buyer)shall, however, have the privilege and option of proceeding with the consummation of 65 this Contract without regard to the amount of the reasonable value established by the Department of 66 Veterans Affairs. 67 68 10.8. Source of Potable Water(Residential Land and Residential Improvements Only). 69 Buyer❑ Does® Does Not acknowledge receipt of a copy of Seller's Property Disclosure or Source of 70 Water Addendum disclosing the source of potable water for the Property. Buyer ❑ Does❑ Does Not 71 acknowledge receipt of a copy of the current well permit. ®There is No Well. 72 Note to Buyer: SOME WATER PROVIDERS RELY, TO VARYING DEGREES, ON NONRENEWABLE 73 GROUND WATER. YOU MAY WISH TO CONTACT YOUR PROVIDER(OR INVESTIGATE THE 74 75 DESCRIBED SOURCE)TO DETERMINE THE LONG-TERM SUFFICIENCY OF THE PROVIDER'S 76 WATER SUPPLIES. 77 10.10. Lead-Based Paint. 78 10.10.1. Lead-Based Paint Disclosure Unless exempt, if the Property includes one 79 or more residential dwellings constructed or a building permit was issued prior to January 1, 1978, for the 80 81 benefit of Buyer, Seller and all required real estate licensees must sign and deliver to Buyer a completed 82 Lead-Based Paint Disclosure (Sales)form on or before the Lead-Based Paint Disclosure Deadline. If 83 Buyer does not timely receive the Lead-Based Paint Disclosure, Buyer may waive the failure to timely 84 receive the Lead-Based Paint Disclosure, or Buyer may exercise Buyer's Right to Terminate under§ 25.1 85 by Seller's receipt of Buyer's Notice to Terminate on or before the expiration of the Lead-Based Paint 86 87 Termination Deadline. 88 10.10.2. Lead-Based Paint Assessment If Buyer elects to conduct or obtain a risk 89 assessment or inspection of the Property for the presence of Lead-Based Paint or Lead-Based Paint 90 hazards, Buyer has a Right to Terminate under§25.1 by Seller's receipt of Buyer's Notice to Terminate on 91 or before the expiration of the Lead-Based Paint Termination Deadline. If Buyer's Notice to Terminate 92 would otherwise be required to be received by Seller after Closing Date, Buyer's Notice to Terminate must 93 94 be received by Seller on or before Closing. Buyer may elect to waive Buyer's right to conduct or obtain a 95 risk assessment or inspection of the Property for the presence of Lead-Based Paint or Lead-Based Paint 96 hazards. If Seller does not receive Buyer's Notice to Terminate within such time, Buyer accepts the 97 condition of the Property relative to any Lead-Based Paint as satisfactory, and Buyer waives any Right to 98 Terminate under this provision. 99 100 10.11. Carbon Monoxide Alarms. Note: If the improvements on the Property have a 101 fuel-fired heater or appliance, a fireplace, or an attached garage and include one or more rooms lawfully 102 used for sleeping purposes (Bedroom), the parties acknowledge that Colorado law requires that Seller 103 assure the Property has an operational carbon monoxide alarm installed within fifteen feet of the entrance 104 to each Bedroom or in a location as required by the applicable building code. 105 10.12. Methamphetamine Disclosure. If Seller knows that methamphetamine was ever 106 manufactured, processed, cooked, disposed of, used or stored at the Property, Seller is required to disclose such fact. No disclosure is required if the Property was remediated in accordance with state standards and other requirements are fulfilled pursuant to§25-18.5-102, C.R.S. Buyer further acknowledges that Buyer has the right to engage a certified hygienist or industrial hygienist to test whether the Property has ever been used as a methamphetamine laboratory. Buyer has the Right to Terminate under§25.1, upon Seller's receipt of Buyer's written Notice to Terminate, notwithstanding any other provision of this Contract, based on Buyer's tgst results that indicate the Property has been contaminated with methamphetamine, but has not been remediated to meet the standards established by rules of the State Board of Health promulgated pursuant to§25-18.5-102, C.R.S. Buyer must promptly give written notice to Seller of the results of the test. 19.5 Home Warranty. Seller and Buyer are aware of the existence of pre-owned home warranty programs that may be purchased and may cover the repair or replacement of such Inclusions. Date: 2—f 9 Buyer: City of Aspen By: Sara Ott, City Manager RA33-10-18. RESIDENTIAL ADDENDUM TO CONTRACT TO BUY AND SELL REAL ESTATE Page 2 of 3 CTMeConttacts.com-3'2019 CTM Software Corp. Buyer: Date: ,ij, / �-� Date: Seller:Aspen Mini-Storage, LLC By: Susan V. Clark, Manager Seller: Date: (RA33-8-18) (Mandatory 1-19) RESIDENTIAL ADDENDUM TO CONTRACT TO BUY AND SELL REAL ESTATE CTM eContracts - 02016 CTM Software Corp. RA33-10-18. RESIDENTIAL ADDENDUM TO CONTRACT TO BUY AND SELL REAL ESTATE Page 3 of 3 CTMeContracts.com-C2019 CTM Software Corp.