SUNBELT RENTALS, INC S FORTHWITH MOTION TO INTERVENE. Sunbelt Rentals, Inc. ( Sunbelt ), by its attorneys at Darling Milligan Horowitz PC,

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1 DISTRICT COURT, CITY AND COUNTY OF DENVER, STATE OF COLORADO Denver City and County Building 1437 Bannock Street Denver, CO (720) In re the Receivership Estate of MYH And Concerning: Alpine Herbal Wellness, LLC, Serenity Moon Wellness Center, LLC, Walnut Associates, LLC, ADG Herbal Wellness Center, Inc., FL89, LLC, Frosted Leaf, LLC; Straight River, LLC; Vape Tools, LLC; East 40 th Avenue, LLC; 420 Events, LLC; and Canna Co, LLC Attorneys for Intervenor: William H. Eikenberry, Reg. No DARLING MILLIGAN HOROWITZ PC th Street, Suite 800 Denver, Colorado Phone Number: (303) Fax Number: (303) COURT USE ONLY Case No.: 2016DR30252 Div.: 303 Hon. Lael Montgomery (retired), Judicial Arbiter Group, Inc., Appointed Pursuant to C.R.S and C.R.C.P. 122 JAG Case No.: A SUNBELT RENTALS, INC S FORTHWITH MOTION TO INTERVENE Sunbelt Rentals, Inc. ( Sunbelt ), by its attorneys at Darling Milligan Horowitz PC, hereby moves to intervene in this case in order to protect and pursue its claims to payments from two limited liability companies in receivership to Respondent Kiri Humphrey, and in support, Sunbelt states as follows: 1. Sunbelt has a Judgment against Respondent Kiri Humphrey ( Humphrey ) in the principal amount of $47,218.66, which was entered by Denver District Court Judge Jay Sutherland Grant on October 24, (Judgment attached, Exhibit A). 2. On December 7, 2016, Judge Grant issued a Charging Order directing two of Humphrey s limited liability companies in receivership in this case, FL89, LLC and Frosted

2 Leaf, LLC, to promptly pay Sunbelt all present and future distributions, credits, draws, reimbursements, rental payments, or other forms of payment otherwise payable to Mr. Humphrey, or money due or to become due to Judgment-debtor, until the Judgment has been fully satisfied, including principal, interest, costs, and attorneys fees. (Charging Order attached, Exhibit B). 3. Sterling Consulting Corporation through Richard Block the Court-appointed receiver in this case (the Receiver ), maintains a principal office address of 4101 E. Louisiana, Denver, CO However, Sunbelt understands from its process server that the Receiver s office at that location is vacant, so for purposes of serving the Receiver with the Charging Order, Sunbelt contacted the Receiver s legal counsel on December 9, 2016 with a request to accept service of the Order for the Receiver. It was not until December 21, 2016 that the Receiver s attorney finally agreed to discuss the matter and accepted service of the Charging Order. 4. Since serving the Charging Order, and despite repeated request by Sunbelt s counsel going back several weeks, the Receiver is refusing to say whether he will adhere to the Charging Order. 5. During a conference call with the Receiver on December 21, 2016, the Receiver stated that Humphrey was receiving no distributions or other forms of payment from FL89, LLC and Frosted leaf, LLC, except for wages. The Charging Order served upon the Receiver encompasses payment of the nonexempt portion of Humphrey s wages to Sunbelt. However, on December 22, 2016, Judge Grant also issued two Writs of Continuing Garnishment directing FL89, LLC and Frosted Leaf, LLC to account for and pay Sunbelt the nonexempt portion of wage payments to Humphrey (the Writs ). (Writs attached, Exhibit C). 2

3 6. The Writs were served on the Receiver on January 5, However, since then, and despite multiple requests by Sunbelt s counsel, the Receiver has refused to say whether he will adhere to the Writs. 7. Sunbelt has also asked the Receiver to provide the Receiver Reports so that Sunbelt has an understanding of what is being paid to Humphrey from the marital estate. The Receiver has refused to produce those reports and to even address the request. 8. The Receiver has provided Sunbelt with the Order to Present and File Claims entered in this case on December 16, Sunbelt will file a claim under its Judgment in accordance with that Order (although the Receiver refuses to provide clarification of whether Fl89, LLC and Frosted Leaf, LLC are assets of what is referred to in the Order to Present and File Claims as the Converse Farm Receivership Estate ). 9. However, Sunbelt has an active and ongoing interest in wage and any other payments to Humphrey, once they are to leave the marital estate for payment to Humphrey by the Receiver. The Receiver is responsible for administering those payments to Humphrey, and in that regard, the Receiver is also responsible for addressing and adhering to the Charging Order and Writs issued by Judge Grant. 10. Because the Receiver is refusing to respond to Sunbelt s basic requests for information and continues to keep Sunbelt in the dark on payment under the Charging Order and Writs, it has become necessary for Sunbelt to intervene in this case to provide Notice of the Charging Order and Writs, and to otherwise pursue its rights to payment of monies being paid to Humphrey from the marital estate. (Notice attached, Exhibit D). 3

4 11. Based on Sunbelt s interest in the ongoing payments from the martial estate to Humphrey, Sunbelt has a right to intervene in this case pursuant to C.R.C.P. 24(a)(2), which states in relevant part: Upon timely application anyone shall be permitted to intervene in an action... when the applicant claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant's interest is adequately represented by existing parties. 12. Counsel for Sunbelt conferred with the parties prior to filing this Motion. Humphrey takes no position on the Motion. The Receiver opposes the Motion, and Petitioner s counsel opposed the Motion under a threat against Sunbelt s counsel of prolonged litigation and seeking attorneys fees. WHEREFORE, Intervener Sunbelt Rentals, Inc., respectfully requests an Order: i) permitting Sunbelt to intervene in this matter to assert its interest in assets in receivership, and to file a Notice Charging Order and Writs of Continuing Garnishment (in the form attached hereto as Exhibit D) in order to formally notify the Court, the Court-appointed Receiver and all other parties herein, of Sunbelt s interests in assets in receivership, and the Receiver s obligations to Sunbelt; and ii) directing the Court-appointed Receiver to adhere to the Charging Order and Writs of Continuing Garnishment, and also to provide Sunbelt with documentation of what Respondent Kiri Humphrey has been and is being paid in this case. Respectfully submitted this 16 th day of January, DARLING MILLIGAN HOROWITZ PC /s/ William H. Eikenberry William H. Eikenberry, # Attorneys for Sunbelt Rentals, Inc. 4

5 CERTIFICATE OF SERVICE I hereby certify that on the 16 th day of January, 2017, the foregoing FORTHWITH MOTION TO INTERVENE was filed via ICCES, and served as follows: Via U.S. Mail Sterling Consulting Corporation 4101 E. Louisiana Denver, CO Court-appointed Receiver Via ICCES John Goutell The Minerva, LLC 9457 S. University Boulevard, #528 Highlands Ranch, CO john@theminerva.com Counsel for Respondent John M. Tanner Fairfield and Woods, P.C California Street, Suite 2600 Denver, CO Jtanner@fwlaw.com Counsel for Court-appointed Receiver Kristi Anderson Wells Carolyn Witkus Gutterman & Griffiths PC Park Meadows Drive, Suite 520 Littleton, CO KWells@ggfamilylaw.com Carolyn@ggfamilylaw.com Counsel for Petitioner Via Hand Delivery Honorable Lael Montgomery Judicial Arbiter Group, Inc Blake Street, Suite 400 Denver, CO lmontgomery@jaginc.com Judicial Arbiter Group, Inc. Appointed Arbiter, Case No A /s/ Alexandra L. Panicucci Alexandra L. Panicucci, Paralegal Pursuant to C.R.C.P. 121, 1-26(7), the original of this document with original signature(s) will be maintained in the offices of Darling Milligan Horowitz PC, th Street, Suite 800, Denver, Colorado, 80202, and will be made available for inspection by other parties or the Court upon request. 5

6 DISTRICT COURT, CITY AND COUNTY OF DENVER, STATE OF COLORADO Denver City and County Building 1437 Bannock Street Denver, CO (720) In re the Receivership Estate of MYH And Concerning: Alpine Herbal Wellness, LLC, Serenity Moon Wellness Center, LLC, Walnut Associates, LLC, ADG Herbal Wellness Center, Inc., FL89, LLC, Frosted Leaf, LLC; Straight River, LLC; Vape Tools, LLC; East 40 th Avenue, LLC; 420 Events, LLC; and Canna Co, LLC Attorneys for Intervenor: William H. Eikenberry, Reg. No DARLING MILLIGAN HOROWITZ PC th Street, Suite 800 Denver, Colorado Phone Number: (303) Fax Number: (303) COURT USE ONLY Case No.: 2016DR30252 Div.: 303 Hon. Lael Montgomery (retired), Judicial Arbiter Group, Inc., Appointed Pursuant to C.R.S and C.R.C.P. 122 JAG Case No.: A ORDER Re: SUNBELT RENTALS, INC S MOTION TO INTERVENE THE COURT, having reviewed Sunbelt Rentals, Inc s Motion to Intervene, and being fully advised, does hereby ORDER: Sunbelt s Motion to Intervene is hereby GRANTED, and Sunbelt s Notice of Charging Order and Writs of Continuing Garnishment, attached to the Motion as Exhibit D, is hereby deemed filed in this action. Sterling Consulting Corporation is further ORDERED to provide Sunbelt with is position on adherence with the Charging Order and Writs of Continuing Garnishment, and also to provide Sunbelt with an accounting of all payments made to Respondent from the Receivership estate since the Charging Order was first provided to the Receiver s legal counsel on December 9, ORDERED this day of, HONORABLE JUDGE LAEL MONTGOMERY

7 DISTRICT COURT, CITY AND COUNTY OF DENVER, STATE OF COLORADO Denver City and County Building 1437 Bannock Street Denver, CO (720) In re the Receivership Estate of MYH And Concerning: Alpine Herbal Wellness, LLC, Serenity Moon Wellness Center, LLC, Walnut Associates, LLC, ADG Herbal Wellness Center, Inc., FL89, LLC, Frosted Leaf, LLC; Straight River, LLC; Vape Tools, LLC; East 40 th Avenue, LLC; 420 Events, LLC; and Canna Co, LLC Attorneys for Intervenor: William H. Eikenberry, Reg. No DARLING MILLIGAN HOROWITZ PC th Street, Suite 800 Denver, Colorado Phone Number: (303) Fax Number: (303) COURT USE ONLY Case No.: 2016DR30252 Div.: 303 Hon. Lael Montgomery (retired), Judicial Arbiter Group, Inc., Appointed Pursuant to C.R.S and C.R.C.P. 122 JAG Case No.: A NOTICE OF CHARGING ORDER AND WRITS OF CONTINUING GARNISHMENT 1. Sunbelt Rentals, Inc. ( Sunbelt ), by its attorneys at Darling Milligan Horowitz PC, hereby gives this Notice of the Charging Order and Writs of Garnishment against FL89, LLC and Frosted Leaf, LLC, assets in receivership. (See Charging Order, attached to Sunbelt s Forthwith Motion to Intervene as Exhibit B). 2. Pursuant to the Charging Order, FL89, LLC and Frosted Leaf, LLC, are required to pay promptly to Sunbelt, at the address of its counsel, William H. Eikenberry, Darling Milligan Horowitz PC, th Street, Suite 800, Denver, CO 80202, all present and future distributions, credits, draws, reimbursements, rental payments, or other forms of payment otherwise payable to Respondent, or money due or to become due to Kiri Humphrey, until Sunbelt s Judgment against Respondent has been fully satisfied, including principal, interest, costs, and attorneys fees. 3. Pursuant to the Writs of Continuing Garnishment, FL89, LLC and Frosted Leaf, LLC are required to account for and pay Sunbelt the nonexempt portion of Humphrey s ongoing wage payments. (See Writs, attached to Sunbelt s Forthwith Motion to Intervene as Exhibit C). Exhibit D

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32 DISTRICT COURT, DENVER COUNTY, COLORADO Court Address: 1437 Bannock Street, Rm 256, Denver, CO, Plaintiff(s) SUNBELT RENTALS INC v. Defendant(s) 420 EVENTS LLC et al. DATE FILED: December 7, :40 PM CASE NUMBER: 2016CV30588 COURT USE ONLY Case Number: 2016CV30588 Division: 209 Courtroom: Order: Proposed Charging Order The motion/proposed order attached hereto: SO ORDERED. Issue Date: 12/7/2016 JAY SUTHERLAND GRANT District Court Judge Exhibit B Page 1 of 1

33 DISTRICT COURT, CITY AND COUNTY OF DENVER STATE OF COLORADO 1437 Bannock Street Denver, CO Plaintiff: SUNBELT RENTALS, INC., a North Carolina corporation; Defendants: 420 EVENTS, LLC, a Colorado Corporation and KIRI A. HUMPHREY, an individual. CHARGING ORDER COURT USE ONLY Case No.: 16CV30588 Courtroom: 209 THIS MATTER having come before the Court on Plaintiff/Judgment-creditor s Motion for Charging Order, and the Court having reviewed the Motion and being otherwise familiar with the premises: ORDERS, that the Motion is hereby GRANTED; THE COURT FUTHER ORDERS, that: FL89, LLC and Frosted Leaf LLC (the Limited Liability Companies ) are directed to pay promptly to Sunbelt Rentals, Inc. (hereafter Judgment-creditor ) at the address of its counsel, William H. Eikenberry; Darling Milligan Horowitz PC, th Street, Suite 800, Denver, Colorado 80202, all present and future distributions, credits, draws, reimbursements, rental payments, or other forms of payment otherwise payable to Kiri Humphrey (hereafter Judgmentdebtor ), or money due or to become due to Judgment-debtor, until the judgment in this case has been fully satisfied including principal, interest, costs, and attorney fees awarded by the Court; Attachment to Order CV30588 The above Order for payment of monies otherwise receivable by Judgment-debtor is exclusive of any amounts payable to Judgment-debtor under a properly asserted legal exemption right, if same is properly claimed within 10 days of the service of a copy of this Order. Breach of this Order, upon due application to this Court, shall be considered a contempt of this Court and may be punishable by such sanctions as the Court any find necessary and appropriate.

34 The Limited Liability Companies shall make no loans or capital acquisitions, nor undertake any sales or encumbrances of any interests in the limited liability companies, nor shall they pay any creditor of the Judgment-debtor, without either Court approval or the approval of the Judgmentcreditor. Upon a 10 day notice from the Plaintiff to Judgment-debtor or any of the Limited Liability Companies, all books and records of the limited liability company receiving notice shall be produced for copy and inspection in the office of DARLING MILLIGAN HOROWITZ PC. Upon due application, any party may apply to this Court for further modification this Order, and the Court retains jurisdiction. Inasmuch as counsel for Judgment-creditor herein, the Minerva, LLC, is also Registered Agent for the Limited Liability Companies, no further service of this Order upon the Limited Liability Companies shall be required, and the Court will have jurisdiction over the Limited Liability Companies for the purposes set forth herein. Dated: this day of, BY THE COURT: District Court Judge Attachment to Order CV30588

35 DISTRICT COURT, DENVER COUNTY, COLORADO Court Address: 1437 Bannock Street, Rm 256, Denver, CO, Plaintiff(s) SUNBELT RENTALS INC v. Defendant(s) 420 EVENTS LLC et al. DATE FILED: October 24, :39 AM CASE NUMBER: 2016CV30588 COURT USE ONLY Case Number: 2016CV30588 Division: 209 Courtroom: Order: Proposed Order of Judgment The motion/proposed order attached hereto: SO ORDERED. Issue Date: 10/24/2016 JAY SUTHERLAND GRANT District Court Judge Exhibit A Page 1 of 1

36 DISTRICT COURT, CITY AND COUNTY OF DENVER STATE OF COLORADO 1437 Bannock Street Denver, CO Plaintiff: SUNBELT RENTALS, INC., a North Carolina corporation; Defendants: 420 EVENTS, LLC, a Colorado Corporation and KIRI A. HUMPHREY, an individual. PROPOSED ORDER OF JUDGMENT COURT USE ONLY Case No.: 16CV30588 Courtroom: 209 THIS MATTER, having come before the Court on the parties Stipulated Motion for Entry of Judgment against Defendants, finds that venue has been considered and is proper, and hereby: ORDERS that Judgment enter in favor of Plaintiff, Sunbelt Rentals, Inc. and against the Defendants 420 Events, LLC and Kiri Humphrey, jointly and severally, in the total amount of $47,218.66, which represents principal of $33,114.71, default interest through October 20, 2016 in the amount of $9,184.37, attorney s fees through October 20, 2016 of $4, and costs of collection totaling $ through October 20, 2016, with interest continuing to accrue at the Settlement Agreement rate of 1.5% per month from and after October 21, 2016 until satisfaction of Judgment, plus additional attorney s fees and costs incurred by Plaintiff in collection of the amount due. Attachment to Order CV30588 Dated this day of BY THE COURT: DISTRICT COURT JUDGE

37 DISTRICT COURT, CITY AND COUNTY OF DENVER, STATE OF COLORADO Denver City and County Building 1437 Bannock Street Denver, CO (720) In re the Receivership Estate of MYH And Concerning: Alpine Herbal Wellness, LLC, Serenity Moon Wellness Center, LLC, Walnut Associates, LLC, ADG Herbal Wellness Center, Inc., FL89, LLC, Frosted Leaf, LLC; Straight River, LLC; Vape Tools, LLC; East 40 th Avenue, LLC; 420 Events, LLC; and Canna Co, LLC Attorneys for Intervenor: William H. Eikenberry, Reg. No DARLING MILLIGAN HOROWITZ PC th Street, Suite 800 Denver, Colorado Phone Number: (303) Fax Number: (303) COURT USE ONLY Case No.: 2016DR30252 Div.: 303 Hon. Lael Montgomery (retired), Judicial Arbiter Group, Inc., Appointed Pursuant to C.R.S and C.R.C.P. 122 JAG Case No.: A ENTRY OF APPEARANCE William H. Eikenberry of the firm Darling Milligan Horowitz PC, hereby enters an appearance as counsel for Intervenor Sunbelt Rentals, Inc. Respectfully submitted this 16 th day of January DARLING MILLIGAN HOROWITZ PC /s/ William H. Eikenberry William H. Eikenberry, #29535 Counsel for Intervenor, Sunbelt Rentals, Inc.

38 CERTIFICATE OF SERVICE I hereby certify that on this 16 th day of January, 2017, a true and correct copy of the foregoing ENTRY OF APPEARANCE was filed and served via ICCES, and addressed to the following: Via U.S. Mail Sterling Consulting Corporation 4101 E. Louisiana Denver, CO Court-appointed Receiver Via ICCES John Goutell The Minerva, LLC 9457 S. University Boulevard, #528 Highlands Ranch, CO john@theminerva.com Counsel for Respondent John M. Tanner Fairfield and Woods, P.C California Street, Suite 2600 Denver, CO Jtanner@fwlaw.com Counsel for Court-appointed Receiver Kristi Anderson Wells Carolyn Witkus Gutterman & Griffiths PC Park Meadows Drive, Suite 520 Littleton, CO KWells@ggfamilylaw.com Carolyn@ggfamilylaw.com Counsel for Petitioner Via Hand Delivery Honorable Lael Montgomery Judicial Arbiter Group, Inc Blake Street, Suite 400 Denver, CO lmontgomery@jaginc.com Judicial Arbiter Group, Inc. Appointed Arbiter, Case No A /s/ Alexandra L. Panicucci Alexandra L. Panicucci, Paralegal Pursuant to C.R.C.P. 121, 1-26, the original of this document with original signature(s) will be maintained in the offices of Darling Milligan Horowitz PC, th Street, Suite 800, Denver, Colorado, 80202, and will be made available for inspection by other parties or the Court upon request.

39 DISTRICT COURT, CITY AND COUNTY OF DENVER, STATE OF COLORADO Denver City and County Building 1437 Bannock Street Denver, CO (720) In re the Receivership Estate of MYH And Concerning: Alpine Herbal Wellness, LLC, Serenity Moon Wellness Center, LLC, Walnut Associates, LLC, ADG Herbal Wellness Center, Inc., FL89, LLC, Frosted Leaf, LLC; Straight River, LLC; Vape Tools, LLC; East 40 th Avenue, LLC; 420 Events, LLC; and Canna Co, LLC Attorneys for Intervenor: William H. Eikenberry, Reg. No DARLING MILLIGAN HOROWITZ PC th Street, Suite 800 Denver, Colorado Phone Number: (303) Fax Number: (303) COURT USE ONLY Case No.: 2016DR30252 Div.: 303 Hon. Lael Montgomery (retired), Judicial Arbiter Group, Inc., Appointed Pursuant to C.R.S and C.R.C.P. 122 JAG Case No.: A ORDER Re: SUNBELT RENTALS, INC S MOTION TO INTERVENE THE COURT, having reviewed Sunbelt Rentals, Inc s Motion to Intervene, and being fully advised, does hereby ORDER: Sunbelt s Motion to Intervene is hereby GRANTED, and Sunbelt s Notice of Charging Order and Writs of Continuing Garnishment, attached to the Motion as Exhibit D, is hereby deemed filed in this action. Sterling Consulting Corporation is further ORDERED to provide Sunbelt with is position on adherence with the Charging Order and Writs of Continuing Garnishment, and also to provide Sunbelt with an accounting of all payments made to Respondent from the Receivership estate since the Charging Order was first provided to the Receiver s legal counsel on December 9, ORDERED this day of, HONORABLE JUDGE LAEL MONTGOMERY