ATTENTION BROKERS READ GUIDELINES FOR CONTRACTS

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1 ATTENTION BROKERS This is a Relocation Property. Please read this document carefully and follow all procedures to ensure a quick response Contract Must state Sellers Name Exactly as: Electronic Data Systems Corporation, ExcellerateHRO Relocation & Assignment Services Please include the following signed copies along with your offer: Contract Of Sale Addendum Square Footage Disclosure Closing Instructions Lead-Based Paint Disclosure Hazardous Material Disclaimer Homeowner Property Disclosure Homeowner Insurance Disclosure Pre-Approval Letter READ GUIDELINES FOR CONTRACTS Our Main Office Is Located At: RE/MAX AFFILIATES TH St. Golden, CO Main Office Earnest Money: Earnest Money in the amount of $5,000 Make Payable to RE/MAX AFFILIATES Listing Broker Information: Sally Ann Roper Direct: Cell: E-Fax: Website:

2 Guidelines for Contracts EDS, an affiliate of ExcellerateHRO LLP ExcellerateHRO Relocation & Assignment Services (RAS) ExcellerateHRO The HRO business of EDS and Towers Perrin The agent should contact the RAS consultant when an offer on the home is received. The RAS consultant will review the contract to ensure that all paperwork complies with IRS guidelines. The agent must not present any documents to the employee for signature; RAS will sign the contract as the seller, as well as any addenda or amendments to the contract. All contracts must state Electronic Data Systems Corporation, ExcellerateHRO Relocation & Assignment Services as the seller. No strikeouts regarding the seller s name can be accepted. Please note the following: All contracts must include the RAS Contract of Sale Addendum, Homeowner Property Disclosure, Homeowner Insurance Disclosure, Hazardous Materials Disclaimer, and Lead-Based Paint Disclosure. Inspections should be completed within seven days of the effective date of the contract of sale. Refer to the Contract of Sale Addendum (paragraph 3) or call with any questions. All contracts must close with the RAS-designated closing agent. Refer to the Contract of Sale Addendum (paragraph 7) or call with any questions. Lender s pre-approval must be attached to all offers submitted. Contracts contingent upon the sale of the buyer s home are not acceptable. The contract should state the prevailing or market rate, not a specific interest rate. Any concessions included in the contract should be discussed with the RAS consultant prior to final acceptance. RAS does not agree to mediation or arbitration, and any verbiage to the contrary should be stricken from the contract. No option periods are acceptable. Other than inspection and final walk-through, the buyer should not have access to the home. No possession of property prior to closing and funding is permitted. If you encounter an emergency over the weekend, please contact your RAS consultant. Thank you for your assistance in ensuring a smooth transaction! RAS Ref: EELIST.doc v5

3 Contract of Sale Addendum EDS, an affiliate of ExcellerateHRO LLP ExcellerateHRO Relocation & Assignment Services (RAS) ExcellerateHRO The HRO business of EDS and Towers Perrin This attached Addendum is to be made a part of the Contract of Sale dated, 20, between Electronic Data Systems Corporation, ExcellerateHRO Relocation & Assignment Services, Seller, and ( Purchaser ), concerning the following real property ( Property ): 5460 Mohawk Road, Denver, CO DISCLOSURE OF INSPECTION OR TEST REPORTS a. Purchaser acknowledges receipt of the following written condition or disclosures attached hereto: Type of Statement of Statement Transferred Homeowner s Name Homeowner Property Disclosure (5 pages) 05/01/2008 Troy Darling Hazardous Material Disclaimer (1 pages) 05/01/2008 Troy Darling Lead Paint Disclosure (1 pages) 05/01/2008 Troy Darling Homeowner Ins. Disclosure (1 pages) 05/01/2008 Troy Darling b. Purchaser acknowledges receipt of the following written inspection or test reports concerning Property: Type of Inspection of Inspection Inspection Company # Pages c. In addition to the inspections listed above, if any, Seller shall provide to Purchaser copies of the following inspection or test reports as soon as they become available ( Check box only if this section applies): d. Purchaser shall have three days after receipt of the reports listed in Section 1.c. to cancel the Contract and this Contract of Sale Addendum by notifying Seller in writing if any such reports disclose conditions unsatisfactory to Purchaser, which Seller is unwilling or unable to correct. Purchaser s written notice of cancellation shall attach a copy of the report that discloses conditions unsatisfactory to Purchaser. Purchaser s failure to notify Seller in writing within the three-day period shall conclusively be considered approval of these inspections or test reports. e. The results of the above referenced reports, tests, and disclosures are provided to Purchaser for the purposes of disclosure only and should not be relied upon by Purchaser as a representation or warranty about Property s condition. Seller makes no warranties to the accuracy or reliability of the above referenced reports, tests, or disclosures. Purchaser is encouraged to have its own inspection reports or tests conducted during the inspection contingency period referred to in Section 3 of this Contract of Sale Addendum. / Purchaser s Initials / Seller s Initials Page 3 of 4 Contract of Sale Addendum Revised May 2008 RAS Ref: EELIST.doc v5

4 2. INSURANCE a. Purchaser shall immediately apply for homeowner s insurance coverage for Property. Purchaser shall notify Seller in writing within ten days of Effective of this Contract of Sale Addendum should Purchaser not be able to obtain an insurance commitment for Property. If Purchaser has properly notified Seller of Purchaser s inability to obtain insurance during this ten-day period, the Contract and this Contract of Sale Addendum are voidable by Seller, in which case the earnest money shall be refunded to Purchaser. However, should Purchaser fail to notify Seller as specified above of its failing to obtain commitment for property insurance, Purchaser shall be in default and Seller may elect to enforce Section 7.b. of this Contract of Sale Addendum. b. Seller, immediately upon closing, shall terminate all existing insurance policies. Seller shall be relieved of all responsibility and liability for maintaining hazard, flood (if applicable), title, and private mortgage insurance policies. Purchaser shall be responsible for obtaining any required hazard, flood (if applicable), private mortgage insurance premium, FHA mortgage insurance premium, and VA funding fee, if Purchaser s lender so requires. 3. INSPECTION OF PROPERTY BY PURCHASER Purchaser acknowledges the benefit of, and the right to have, any inspections of Property to determine the condition of Property. Purchaser hereby agrees to one of the following: Waive all rights to do inspections and accepts Property in its present as is condition. Purchaser acknowledges that the decision to waive inspections was based on Purchaser s personal inspection, and Purchaser has not relied on any representations by Seller, its agents, or any other person. Purchaser shall have the right to inspect and investigate Property using qualified experts. Purchaser shall keep Property free and clear of any liens; indemnify and hold Seller harmless from all liability claims, demands, damages, or costs; and repair all damages to Property arising from the inspections and tests. Purchaser agrees to use the property inspection time period to examine all aspects of Property. Said inspections must be completed within seven days of Effective of this Contract of Sale Addendum. Purchaser shall deliver written notice to Seller of any items reasonably disapproved from said inspections, excluding cosmetic items, within ten days of Effective of this Contract of Sale Addendum. This notice must specifically identify the conditions to which Purchaser objects. Purchaser shall NOT provide Seller with a copy of inspection report unless Seller so requests. Purchaser s failure to notify Seller in writing within ten days of Effective of this Contract of Sale Addendum shall conclusively be considered as Purchaser's approval of property and its condition. Seller shall have five days to respond in writing to Purchaser s notice. Seller s notice shall do one of the following: 1. Affirm that Seller will correct all the conditions identified in Purchaser s notice. 2. Offer an alternative remedy for Purchaser s disapproved conditions. 3. State that Seller will not repair or address any of Purchaser s inspection issues. Should Seller select 3.1 from above, then the Contract and this Contract of Sale Addendum will remain in full force. If Seller elects 3.2 or 3.3, Purchaser and Seller shall have three days from Seller s notice to reach a mutual agreement on all inspection conditions. Should such a mutual agreement be reached, the Contract and this Contract of Sale Addendum shall remain in full force subject to such agreement. If this agreement cannot be reached in said three days, either Purchaser or Seller may elect to give notice of termination of the Contract and this Contract of Sale Addendum. At such time of termination notice, the parties shall have no further obligations to each other and the earnest money or deposit shall be returned to Purchaser. If neither party terminates by the end of said three days, Seller s election of 3.2 or 3.3 shall be deemed as acceptance by both Seller and Purchaser. 4. NO WARRANTIES ABOUT CONDITION OF PROPERTY AFTER CLOSING a. Purchaser understands that Property including fixtures, appliances, and personal property items included in the sale are not new, and agrees to accept them in their present condition (as is) after closing with no expressed or implied representations or warranties of condition. Purchaser acknowledges and accepts that any fixtures or personal property remaining on Property at time of possession shall convey with Property and may be retained or disposed of as Purchaser determines, at no cost to Seller. b. Purchaser s closing on Property will constitute its acknowledgement that Property, including defects (if any), is acceptable to Purchaser. Purchaser s acceptance of the deed and Property at closing will constitute an absolute and irrevocable waiver of Purchaser s right at any time in the future to object to Property or its condition or to assert any claim whatsoever related to Property, including latent defects of which Seller had no actual knowledge. / Purchaser s Initials / Seller s Initials Page 3 of 4 Contract of Sale Addendum Revised May 2008 RAS Ref: EELIST.doc v5

5 c. Purchaser hereby acknowledges that Seller is selling Property through a relocation program. Purchaser further acknowledges that Seller has never occupied Property and is not familiar with the condition of Property. Seller s knowledge of the condition of Property is based on inspections, condition reports, and transferred owner s disclosures that have been provided to Purchaser. d. Seller makes no representations concerning lot size of Property or the square footage of any improvements on Property. e. Purchaser hereby fully releases ExcellerateHRO Relocation & Assignment Services, its employees, agents, and clients, as well as the previous owner of Property, from any and all liability, claims, expenses, and damages whatsoever (including risk of personal injury), concerning the condition of Property, including fixtures, appliances, and personal property items included in the sale. 5. MORTGAGE LOAN FINANCING a. Seller agrees to pay $ toward Purchaser s closing costs, which may include but not be limited to discount points, prepaids, and other related financing costs. b. Seller shall not be responsible for making any repairs to Property other than those specifically agreed to in the Contract and this Contract of Sale Addendum. If Purchaser is obtaining a new FHA or VA loan and the FHA/VA loan commitment is conditioned upon the completion of any repairs to Property, then Seller may cancel the Contract and this Contract of Sale Addendum unless otherwise negotiated. c. If Purchaser is assuming an existing mortgage loan, then as an express condition of this Contract of Sale Addendum, Purchaser shall take the necessary steps and pay required fees to obtain a release of liability for the present borrower. In the event Purchaser is unable to obtain a release of liability within 30 days from Effective of this Contract of Sale Addendum, the Contract and this Contract of Sale Addendum shall be null and void and Purchaser s earnest money or deposit shall be refunded to Purchaser. 6. PRORATIONS AND TAXES a. Purchaser and Seller agree that fuel oil and propane ( Fuel ) in attached storage tanks at the time of final settlement shall transfer with Property. Purchaser shall compensate Seller by a credit at closing for Fuel. Credit shall be determined by the Fuel amount in the tank multiplied by the current price per gallon for that Fuel type. b. Purchaser is aware that Property may currently be receiving a reduced tax rate for a possible exemption (over 65, agricultural, homestead, etc.) and that the continuance of this exemption cannot be guaranteed. Should the taxing authority remove this exemption, reapplication for lost exemptions and any increased or rollback taxes will be Purchaser s responsibility. c. Property tax, bonds, and assessments shall be prorated based on a 365-day year and the most recent property tax bill. This proration shall be deemed final with no additional adjustments after the final settlement/closing. All supplemental taxes and assessments become the responsibility of Purchaser at the time of closing/close of escrow, and no adjustments will be made between the parties for any taxes and assessments after closing/close of escrow. 7. CLOSING a. The final settlement/closing shall occur on or before ( Close ). Possession shall be granted to Purchaser only upon closing and funding of sale. Closing figures must be received and approved by Seller 24 hours prior to closing or Seller shall have the option to delay closing and extend the Contract until figures are received and approved. b. If this transaction does not close, through no fault of Seller, by Close or any mutually agreed extension of Close, Seller shall have the following two options: 1. Canceling the Contract and this Contract of Sale Addendum, whereby Purchaser s earnest money or deposit shall be released and surrendered to Seller as liquidated damages and not as a penalty. 2. Charging the Purchaser 0.1 percent of the purchase price per day toward Seller s carrying costs, the total of said sum to be credited to Seller on the final settlement/closing date. The right given to Seller to make this election shall not be Seller s exclusive remedy, and either party shall have the right to elect to affirm the Contract and enforce its specific performance or recover full damages for its breach. 8. TITLE a. Initial title work has been ordered through Seller s designated closer, which shall issue the title policy or abstract unless local custom dictates Purchaser chooses. Closing agent shall be First American Heritage Title Co. - Denver - Cher. b. Title shall be conveyed by Deed. / Purchaser s Initials / Seller s Initials Page 3 of 4 Contract of Sale Addendum Revised May 2008 RAS Ref: EELIST.doc v5

6 c. If the title or abstract contains defects and cannot be corrected within a reasonable time after written notice that specifically points out the defects has been given, the Contract may be deemed null and void at the option of either party. In that event the earnest money or deposit shall be returned to Purchaser as Purchaser s sole and exclusive remedy and Seller will be released of all liability. d. If the title is clear and Purchaser fails to close the transaction as specified herein, Seller shall have the right to enforce Section 7. b. 1. e. In the event of controversy regarding title, a title insurance policy or abstract issued by First American Heritage Title Co. - Denver - Cher to Purchaser shall constitute and be accepted by Purchaser as proof of clear title. 9. WALK-THROUGH INSPECTION Purchaser shall be entitled to conduct a walk-through inspection of Property within three days prior to the final settlement/closing for the sole purpose of determining that there has been no material change in Property since Effective of this Contract of Sale Addendum and any repairs agreed to from Section 3 have been completed. 10. CONTINGENT SALE It is expressly understood that Seller has entered into a Contract to acquire Property from its present transferred owners and that the Contract and this Contract of Sale Addendum between Seller and Purchaser is contingent upon and subject to Seller successfully completing its acquisition of Property from the present transferred owners. 11. CONFLICT RESOLUTION a. In the event of a dispute involving the enforcement or interpretation of the terms or provisions of this Contract of Sale Addendum or the Contract(including additional addenda), the prevailing party will be entitled to reasonable attorney fees, court costs, and necessary disbursements, in addition to any other relief to which the party may be entitled. b. Seller neither accepts nor agrees to participate in mediation or arbitration. c. If any of the provisions contained in this Contract of Sale Addendum are determined to be invalid, illegal, or unenforceable by a court of law, the validity, legality, and enforceability of the remaining provisions will not be affected or impaired in any way as a result. 12. TIME FRAMES AND NOTICES a. Seller and Purchaser acknowledge that time is of the essence. b. All days referenced in this Contract of Sale Addendum are to be calendar days unless otherwise specified. c. All notices or agreements shall be in writing. The provisions of this ExcellerateHRO Relocation & Assignment Services Contract of Sale Addendum shall survive the final settlement closing and delivery of the deed and shall supersede and override any conflicting clauses or statements in the attached contract, other addenda, and escrow instructions. Effective date ( Effective ) of this agreement is, 20. PURCHASER S ACKNOWLEDGMENT Signature Signature SELLER S ACKNOWLEDGMENT Electronic Data Systems Corporation, ExcellerateHRO Relocation & Assignment Services Signature / Purchaser s Initials / Seller s Initials Page 3 of 4 Contract of Sale Addendum Revised May 2008 RAS Ref: EELIST.doc v5

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