KOLER & FITZSIMMONS, P.S.

Law Offices
www.kflawoffices.org
Seattle, WA Los Angeles, CA
(206) 621-6440 (10) 4!!-"#"#
ran$%kfwlaw.co& e'e%kfwlaw.co&
JOINT VENTURE AGREEMENT
()oint *ent+re Agree&ent for ,wo -arties
Owning -ro.ert/ as ,enants in Co&&on0
,12S A3455657, is &a$e as of t8is 9999999999 $a/ of 99999999999999999999999,
20999 ,:/ an$ :etween (;<;) an$ (;=;).
RECITALS
< an$ = (so&eti&es 8ereinafter referre$ to collecti'el/ as t8e ;-artners; an$ in$i'i$+all/
as t8e ;-artner;) own t8e real .ro.ert/ $escri:e$ in A..en$i> A 8ereto (t8e ;-ro.ert/;) as
tenants in co&&on an$ $esire to for& a ?oint 'ent+re +n$er t8e general .artners8i. laws of t8e
State of Was8ington (t8e ;)oint *ent+re;) for t8e li&ite$ .+r.ose of &anaging, leasing, an$
$e'elo.ing t8e -ro.ert/ an$ in s+c8 ot8er :+sinesses as t8e -artners &a/ agree +.on in writing.
Accor$ingl/, t8e -artners 8ere:/ for& an$ agree to con$+ct certain acti'ities as a ?oint
'ent+re for t8e .+r.oses 8ereinafter set fort8 an$ +.on t8e following ter&s an$ con$itions@
ARTICLE 1.
GENERAL PROVISIONS
Section 1.1 Pu!o"e" #n$ Sco!e o% Joint Ventue.
1.1.1 5>ce.t as ot8erwise e>.ressl/ .ro'i$e$ for 8erein, t8e rig8ts an$
o:ligations of t8e -artners an$ t8e a$&inistration an$ ter&ination of t8e )oint *ent+re s8all :e
go'erne$ :/ t8e Was8ington Anifor& -artners8i. Act. A -artnerBs interest in t8e )oint *ent+re
s8all :e .ersonal .ro.ert/ for all .+r.oses.
1.1.2 ,8e )oint *ent+re :+siness an$ affairs s8all :e li&ite$ strictl/ to t8e
$e'elo.&ent an$ sale of t8e -ro.ert/, an$ s8all not :e e>ten$e$ :/ i&.lication or ot8erwise
e>ce.t :/ t8e written agree&ent of t8e -artners.
Section 1.& N#'e o% Joint Ventue. ,8e :+siness an$ affairs of t8e )oint
*ent+re s8all :e con$+cte$ solel/ an$ at all ti&es +n$er t8e na&e of ;99999999999999999999.;
Section 1.( A""u'e$ N#'e Ceti%ic#te. ,8e -artners s8all e>ec+te a
certificate of Cir& 7a&e as reD+ire$ :/ t8e laws of t8e State of Was8ington an$ s8all ca+se s+c8
certificate to :e file$ wit8 t8e Ee.art&ent of Licensing of t8e State of Was8ington.
Section 1.) Sco!e o% P#tne*" Aut+oit,. 5>ce.t as ot8erwise e>.ressl/ an$
s.ecificall/ .ro'i$e$ in t8is Agree&ent, neit8er -artner s8all 8a'e an/ a+t8orit/ to act for, or to
ass+&e an/ o:ligations or res.onsi:ilit/ on :e8alf of, t8e ot8er -artner or t8e )oint *ent+re.
Section 1.- Pinci!#. P.#ce o% /u"ine"". ,8e .rinci.al office an$ .lace of
:+siness of t8e )oint *ent+re s8all :e &aintaine$ at t8e office of < or s+c8 ot8er .lace or .laces
as s8all fro& ti&e to ti&e :e $esignate$ :/ t8e -artners.
Section 1.0 Te'. ,8e )oint *ent+re s8all co&&ence +.on t8e $ate of t8is
Agree&ent an$ s8all contin+e +ntil 99999999999,999999999999, or +ntil ter&inate$ as .ro'i$e$
8erein, w8ic8e'er first occ+rs.
ARTICLE &.
CONTRI/UTIONS, PARTICIPATION AN1 1ISTRI/UTIONS
Section &.1 Ten#nc, in Co''on. ,8e -artners s8all retain title to t8e
-ro.ert/ as tenants in co&&on, wit8 a !0F +n$i'i$e$ interest 8el$ :/ < an$ a !0F +n$i'i$e$
interest 8el$ :/ <, :+t agree to treat t8e -ro.ert/, title to w8ic8 is retaine$ :/ t8e -artners
in$i'i$+all/, as contri:+te$ to t8e -artners8i. for .+r.oses of $eter&ining ca.ital acco+nts of t8e
-artners.
Section &.& Ot+e C#!it#. Conti2ution".
2.2.1 A.on e>ec+tion of t8is Agree&ent, t8e -artners s8all eac8 :e $ee&e$ to
8a'e contri:+te$ to t8e )oint *ent+re as a ca.ital contri:+tion G9999999999.,8e )oint *ent+re
s8all :e owne$ initiall/ :/ t8e -artners in t8e .ercentage interests (8ereinafter ;.artners8i.
Owners8i. -ercentage 2nterests;) of fift/ .ercent (!0F) eac8. 5>ce.t wit8 res.ect to s+c8 initial
ca.ital contri:+tions, t8e .arties $o not inten$ to &ake an/ ot8er or f+rt8er ca.ital contri:+tions.
1owe'er, in t8e e'ent a$$itional ca.ital contri:+tions are reD+ire$ in connection wit8 t8e
o.eration, &anage&ent, leasing, or owners8i. of t8e -ro.ert/, an$ s+c8 a$$itional f+n$s cannot
:e :orrowe$ :/ t8e )oint *ent+re, t8e .arties agree to contri:+te s+c8 a$$itional ca.ital
contri:+tions as are necessar/ in t8e sa&e .ro.ortion as t8eir allocation of .rofits an$ losses
+n$er Section 2..
2.2.2 2f t8e -artners agree to sell all or an/ .ortion of t8e )oint *ent+re assets,
t8e net .rocee$s of s+c8 sale after .a/ing all )oint *ent+re in$e:te$ness s8all :e $istri:+te$ as
follows@
2.2.2.1 Cirst, to t8e -artners to t8e e>tent necessar/ to ret+rn ca.ital contri:+te$
to t8e )oint *ent+re :/ s+c8 -artnersH an$
2.2.2.2 ,8en, to all t8e -artners accor$ing to t8eir res.ecti'e -artners8i.
Owners8i. -ercentage 2nterests.
Section &.( P#tici!#tion in Po%it" #n$ Lo""e".
2..1 ,8e net .rofits of t8e -artners8i. s8all :e $i'i$e$ an$ t8e net losses of t8e
.artners8i. s8all :e allocate$ to t8e -artners accor$ing to t8eir res.ecti'e -artners8i. Owners8i.
-age 2
-ercentage 2nterests. 7o interest or a$$itional s8are of .rofits s8all in+re to an/ -artner :/ reason
of 8is ca.ital acco+nt :eing .ro.ortionatel/ in e>cess of t8e ca.ital acco+nts of t8e ot8ers.
2..2 ,8e ;cas8 a'aila:le for $istri:+tion; for an/ fiscal /ear of t8e )oint
*ent+re s8all :e t8e cas8 recei.ts of t8e )oint *ent+re $+ring s+c8 fiscal /ear, less (i) t8e cas8
$is:+rse&ents $+ring s+c8 .erio$ (incl+$ing .rinci.al an$ interest .a/&ents on all )oint *ent+re
o:ligations) an$ (ii) an/ a&o+nts w8ic8 t8e 6anaging -artner reasona:l/ $eter&ines to :e
necessar/ to :e reser'e$ to &eet t8e nee$s of t8e )oint *ent+reBs :+siness. ,8e cas8 a'aila:le for
$istri:+tion s8all :e $istri:+te$ to an$ allocate$ a&ong t8e -artners at s+c8 ti&e as t8e 6anaging
-artner s8all $eter&ine, :+t at least ann+all/, in accor$ance wit8 t8eir -artners8i. Owners8i.
-ercentage 2nterests.
ARTICLE (.
MANAGEMENT
Section (.1 A!!o3#." o% P#tne".
(.1.1 M#n#4in4 P#tne. ,8e o'erall &anage&ent an$ control of t8e :+siness
an$ affairs of t8e )oint *ent+re s8all :e 'este$ in t8e -artners, collecti'el/. 5>ce.t w8ere 8erein
e>.ressl/ .ro'i$e$ to t8e contrar/, all $ecisions wit8 res.ect to t8e &anage&ent an$ control of
t8e )oint *ent+re s8all reD+ire t8e .rior consent an$ agree&ent of t8e -artners. One of t8e
-artners (8ereinafter referre$ to as t8e ;6anaging -artner;) s8all :e res.onsi:le for t8e
i&.le&entation of t8e $ecisions of t8e -artners an$ for con$+cting t8e or$inar/ an$ +s+al
:+siness an$ affairs of t8e )oint *ent+re as &ore f+ll/ set fort8 in Sections .2 an$ I 8ereof an$
as li&ite$ :/ t8is Agree&ent.
(.1.& M#5o 1eci"ion". 7o act s8all :e taken, s+& e>.en$e$, or o:ligation
inc+rre$ :/ t8e )oint *ent+re or an/ of t8e -artners wit8 res.ect to a &atter wit8in t8e sco.e of
an/ of t8e &a?or $ecisions (t8e ;6a?or Eecisions;) affecting t8e )oint *ent+re, as $efine$ :elow,
+nless s+c8 6a?or Eecisions are first a..ro'e$ :/ all of t8e -artners in writing. ,8e 6a?or
Eecisions s8all :e t8e following@
.1.2.1 AcD+isition of an/ real .ro.ert/, i&.ro'e&ent t8ereon, or interest t8ereinH
.1.2.2 Cinancing of t8e )oint *ent+reH
.1.2. Sale (ot8er t8an sale of in$i'i$+al con$o&ini+& a.art&ents in t8e
or$inar/ co+rse of :+siness), lease (e>cl+$ing leases for a $+ration of less t8an one /ear) or ot8er
transfer, or &ortgaging or t8e .lacing of an/ ot8er enc+&:rance on an/ of t8e )oint *ent+re
-ro.ert/ or (e>ce.t as 8ereinafter .ro'i$e$ for) on an/ :+il$ings or ot8er i&.ro'e&ents or .arts
t8ereof on t8e -ro.ert/H
.1.2.4 Constr+ction of an/ :+il$ings or ot8er i&.ro'e&ents on t8e -ro.ert/H
-age
.1.2.! ,8e ti&ing an$ a&o+nt of a$$itional ca.ital contri:+tions :/ t8e
-artnersH an$
.1.2.6 An/ agree&ent wit8 t8e 6anaging -artner
regar$ing co&.ensation of t8e 6anaging -artner.
(.1.( O!tion to /u, in E3ent o% 1e#$.oc6.
.1..1 2n t8e e'ent one -artner ref+ses to so consent, a..ro'e, or agree (8erein
t8e ;nonconsenting -artner;) wit8 res.ect to &atters .ro.erl/ raise$ +n$er s+:.aragra.8 .1.1
or .1.2 of t8is Section .1 an$ t8e aggregate -artners8i. Owners8i. -ercentage 2nterest
re.resente$ :/ t8e nonconsenting -artner is fift/ .ercent (!0F) or less, t8e )oint *ent+re or t8e
consenting -artner &a/ elect to .+rc8ase (an$ retire, if t8e .+rc8aser is t8e )oint 'ent+re) t8e
interest of t8e nonconsenting -artner in :ot8 t8e )oint *ent+re an$ t8e -ro.ert/. 2n or$er to
e>ercise t8is o.tion to .+rc8ase, t8e nonconsenting -artner &+st first :e gi'en written notice (t8e
;7otice of 2ss+e;) s.ecif/ing t8e e>act nat+re of t8e &atter w8ic8 was raise$ an$ containing s+c8
ot8er infor&ation as &a/ :e necessar/ to ena:le t8e nonconsenting -artner to e'al+ate t8e
.ro.osal. A.on reD+est :/ t8e nonconsenting -artner, t8e .art/ .ro.osing t8e co+rse of action
s8all s+..l/ t8e nonconsenting -artner wit8 s+c8 f+rt8er infor&ation or $oc+&ents as &a/ :e
necessar/ in or$er to e'al+ate t8e .ro.osal. Wit8in twent/ (20) $a/s after t8e recei.t :/ t8e
nonconsenting -artner of t8e 7otice of 2ss+e, t8e nonconsenting -artner s8all gi'e written notice
to t8e )oint *ent+re an$ t8e consenting -artner in$icating w8et8er t8e consent, a..ro'al, or
agree&ent is ref+se$H an$ if s+c8 notice is not gi'en wit8in t8e reD+ire$ ti&e, s+c8 consent,
a..ro'al, or agree&ent s8all :e $ee&e$ to 8a'e :een ref+se$ as of t8e en$ of t8e twent/ (20)
$a/s. ,8e election to .+rc8ase s8all :e &a$e :/ written notice gi'en to t8e nonconsenting
-artner wit8in fort/-fi'e (4!) $a/s after t8e $ate of recei.t :/ t8e )oint *ent+re an$ t8e
consenting -artner of t8is written notice of ref+sal or t8e $ate on w8ic8 t8e nonconsenting
-artner is $ee&e$ to 8a'e gi'en 8is notice of ref+sal, w8ic8e'er is sooner.
.1..2 2n t8e e'ent s+c8 an election to .+rc8ase is e>ercise$,-t8e nonconsenting
-artner s8all :e $ee&e$ to 8a'e resigne$ fro& t8e )oint *ent+re as of t8e $ate of e>ercise, an$
t8e 'al+ation of t8e interest an$ t8e ter&s of .a/&ent s8all :e as .ro'i$e$ in Section 4.4 or 4.!.
.1.. 2f no election to .+rc8ase is e>ercise$ as .ro'i$e$ 8erein, t8e reD+este$
consent, a..ro'al, or agree&ent s8all :e $ee&e$ to 8a'e :een $enie$ :/ all t8e -artners.
Section (.& A!!oint'ent #n$ Re!.#ce'ent o% M#n#4in4 P#tne". <, :/ an$
t8ro+g8 9999999999999999999999999999999999999, or s+c8 ot8er agent or agents as it &a/
a..oint, s8all :e t8e 6anaging -artner of t8e )oint *ent+re an$ s8all $isc8arge or
ca+se t8e $isc8arge of t8e $+ties t8ereof +nless an$ +ntil re.lace$. ,8e 6anaging -artner &a/ :e
re.lace$ +.on 'ote of -artner(s) 8a'ing an aggregate of greater t8an fift/ .ercent (!0F) of t8e
total -artners8i. Owners8i. -ercentage 2nterest.
Section (.( 1utie" o% M#n#4in4 P#tne. ,8e original 6anaging -artner, or
an/ re.lace&ent, at t8e e>.ense an$ on :e8alf of t8e )oint *ent+re, s8all in goo$ fait8 +se 8is
:est efforts to i&.le&ent or ca+se to :e i&.le&ente$ all 6a?or Eecisions a..ro'e$ :/ t8e )oint
-age 4
*ent+re an$ to con$+ct or ca+se to :e con$+cte$ t8e or$inar/ an$ +s+al :+siness an$ affairs of
t8e )oint *ent+re. ,8e following is a list of certain of t8e acts an$ $+ties for w8ic8 t8e 6anaging
-artner is res.onsi:le@
..1 Leasing (for ter&s of less t8an one /ear), i&.ro'ing, &aintaining,
&anaging, an$ ser'icing t8e -ro.ert/H
..2 6arketing, selling, an$ con'e/ing con$o&ini+& +nits in t8e or$inar/
co+rse of :+siness, on s+c8 ter&s an$ con$itions as 6anaging -artner &a/ $eter&ineH
.. 1a'ing .re.are$ :/ selecte$ certifie$ .+:lic acco+ntants an$ $eli'ere$ to
eac8 -artner wit8in si>t/ (60) $a/s after t8e en$ of eac8 /ear, a )oint *ent+re infor&ation ta>
ret+rn for t8e )oint *ent+re an$ for eac8 -artner, incl+$ing an ann+al re.ort of t8e )oint *ent+re
containing a :alance s8eet an$ a state&ent of inco&e an$ e>.enses, a state&ent of so+rces an$
+ses of f+n$s, an$ a state&ent of :alances in t8e Ca.ital an$ Erawing Acco+nts of t8e -artners.
All s+c8 acco+nting is to :e in accor$ance wit8 generall/ acce.te$ acco+nting .rinci.lesH
..4 2ns+ring t8at t8e )oint *ent+re &ake or re'oke t8e election referre$ to in
Section "!4 of t8e 2nternal 4e'en+e Co$e of 1J!4 or an/ si&ilar .ro'ision enacte$ in lie+
t8ereofH
..! Constr+cting i&.ro'e&ents on t8e .ro.ert/ an$ 8an$ling all $raw
reD+ests fro& len$ers for t8is .+r.ose, .ro'i$e$ t8at I s8all :e retaine$ :/ t8e )oint *ent+re as
an in$e.en$ent contractor solel/ for t8e .+r.ose of acting as general contractor in constr+cting
s+c8 i&.ro'e&entsH
..6 Selecting as t8e )oint *ent+re acco+nting /ear a calen$ar /ear or s+c8
fiscal /ear as a..ro'e$ :/ t8e 2nternal 4e'en+e Ser'ice an$ t8e -artners an$ $eter&ining w8ic8
generall/ acce.te$ acco+nting &et8o$ or &et8o$s s8all :e +se$ :/ t8e )oint *ent+reH
.." -ro'i$ing t8at all &one/s of t8e )oint *ent+re s8all :e $e.osite$ in a :ank
acco+nt an$ signing s+c8 resol+tions an$ signat+re car$s as &a/ :e reD+ire$ :/ sai$ :ankH an$
..# 6aintaining all necessar/ recor$s, o:taining necessar/ ins+rance, 8iring
an$ retaining .ersonnel necessar/ to carr/ o+t t8e acts an$ $+ties note$ a:o'e, a+$iting an$
.a/ing :ills an$ reasona:le e>.enses inc+rre$ in t8e f+lfill&ent of t8e &anage&ent acts an$
$+ties set fort8 8erein, an$ .re.aring an$ f+rnis8ing state&ents concerning collections an$
$is:+rse&ents.
Section (.) Attone," #n$ Account#nt". ,8e -artners s8all agree +.on a law
fir& an$ an acco+nting fir& to re.resent t8e )oint *ent+re. 2n$i'i$+al -artner legal an$
acco+nting &atters s8all not :e .ai$ for :/ t8e )oint *ent+re.
-age !
Section (.- Con"ent" #n$ A!!o3#.". 2n an/ instance +n$er t8is Agree&ent in
w8ic8 t8e consent or a..ro'al of a -artner to an/ .ro.ose$ action is reD+ire$, s+c8 consent or
a..ro'al s8all :e $ee&e$ to 8a'e :een gi'en +nless written o:?ection to s+c8 .ro.ose$ action,
stating wit8 .artic+larit/ t8e gro+n$s t8erefor, is sent :/ s+c8 o:?ecting -artner to t8e ot8er
-artners wit8in twent/ (20) $a/s after recei.t of a written reD+est for s+c8 consent or a..ro'al.
Section (.0 Re"tiction". 7o -artner s8all, wit8o+t t8e consent of t8e ot8er -artners,
en$orse an/ note, act as an acco&&o$ation .art/, ot8erwise :eco&e s+ret/ for an/ .erson, or $o
an/ act $etri&ental to t8e :est interests of t8e )oint *ent+re
or w8ic8 wo+l$ &ake it i&.ossi:le to carr/on t8e or$inar/ :+siness of t8e )oint *ent+re. 2f t8e
)oint *ent+re inc+rs an/ loss, lia:ilit/, or o:ligation arising o+t of +na+t8oriKe$ con$+ct :/ a
-artner in 'iolation of an/ .ro'ision of t8is Agree&ent, t8at -artner s8all in$e&nif/ an$ 8ol$ t8e
)oint *ent+re 8ar&less fro& an/ s+c8 loss or lia:ilit/ to t8e e>tent it is not co'ere$ :/ a .olic/ of
ins+rance. ,8e 6anaging -artner s8all 8a'e t8e rig8t to $raw c8ecks +.on an/ :ank acco+nt of
t8e )oint *ent+re an$ to &ake, $eli'er, an$ acce.t co&&ercial .a.er in connection wit8 t8e
:+siness of t8e )oint *ent+re. 7o -artner s8all, e>ce.t wit8 t8e consent of t8e ot8er -artners,
assign, &ortgage, grant a sec+rit/ interest in, or sell 8is s8are in t8e )oint *ent+re or in its ca.ital
assets or .ro.ert/ or in t8e -ro.ert/ or enter into an/ agree&ent as a res+lt of w8ic8 an/ .erson
s8all :eco&e intereste$ wit8 8i& in t8e )oint *ent+re.
Section (.7 /oo6" #n$ Reco$". A co&.lete set of :ooks an$ recor$s, tr+l/ an$
correctl/ reflecting t8e :+siness transactions of t8e )oint *ent+re, s8all :e ke.t an$
&aintaine$ at t8e .rinci.al .lace of :+siness of t8e )oint *ent+re an$ eit8er -artner s8all
8a'e access to an$ t8e rig8t to ins.ect sai$ :ooks an$ recor$s at an/ reasona:le ti&e.
Section (.8 Co'!en"#tion o% P#tne".
.#.1 < s8all constr+ct i&.ro'e&ents on t8e -ro.ert/ as general contractor for a
fee of ten .ercent (10F) of all .ro?ect costs, e>cl+$ing financing fees, sales, a$'ertising, an$
.ro&otion e>.enses. 5>ce.t for t8is fee, no .a/&ent will :e &a$e :/ t8e )oint *ent+re to an/
-artner for t8e ser'ices of s+c8 -artner e>ce.t .+rs+ant to a written agree&ent s.ecif/ing t8e
ter&s of s+c8 ser'ices an$ co&.ensation.
.#.2 < s8all :e rei&:+rse$ for all legal, acco+nting, an$ organiKational costs
inc+rre$ in connection wit8 t8e )oint *ent+re .rior to t8e $ate 8ereof. 2n t8e f+t+re, eac8 of t8e
-artners s8all :e rei&:+rse$ :/ t8e )oint *ent+re for a+t8oriKe$ reasona:le o+t-of-.ocket
e>.enses inc+rre$ :/ s+c8 -artner in connection wit8 t8e :+siness an$ affairs of t8e )oint
*ent+re.
ARTICLE ).
ASSIGNMENT
Section ).1 T#n"%e Po+i2ite$. 7o -artner &a/ sell, transfer, assign, .le$ge,
8/.ot8ecate or ot8erwise enc+&:er or .er&it or s+ffer an/ enc+&:rance of all or an/ .art of 8is
-age 6
interest in t8e )oint *ent+re or 8is interest in an/ )oint *ent+re .ro.ert/ or in t8e -ro.ert/
(8ereinafter collecti'el/ so&eti&es referre$ to as 8is ;2nterest;), incl+$ing an/ in'ol+ntar/
transfer :/ o.eration of law or ot8erwise, e>ce.t as .ro'i$e$ in t8is Article 4. An/ atte&.t to so
transfer or enc+&:er an/ s+c8 2nterest s8all :e 'oi$. 5it8er .artner &a/ recor$ a &e&oran$+&
of t8is Agree&ent setting fort8 t8e foregoing restrictions on transfer of t8e -ro.ert/ in t8e .lace
w8ere real .ro.ert/ recor$s are recor$e$ in Ling Co+nt/, Was8ington.
Section ).& 1e%#u.t" #n$ In3o.unt#, T#n"%e". 5ac8 of t8e following s8all
constit+te an ;5'ent of Eefa+lt;@
4.2.1 2f an/ -artner &akes an assign&ent for t8e:enefit of cre$itors or a..lies
for a..oint&ent of a tr+stee, liD+i$ator or recei'er of an/ s+:stantial .art of 8is assets or
co&&ences an/ .rocee$ings relating to 8i&self +n$er an/ :ankr+.tc/ (incl+$ing C8a.ter <2)
reorganiKation, arrange&ent or si&ilar lawH
4.2.2 2f an/ s+c8 a..lication is file$ or .rocee$ing is co&&ence$ against an/
-artner an$ s+c8 -artner in$icates 8is consent t8ereto or an or$er is entere$ a..ointing a tr+stee,
liD+i$ator or recei'er or a..ro'ing t8e .etition in an/ s+c8 .rocee$ing w8ic8 or$er re&ains in
effect for &ore t8an si>t/ (60) $a/sH
4.2. 2f an/ sale or ot8er transfer of an/ 2nterest, w8et8er &a$e 'ol+ntaril/ or :/
o.eration of law or :/ t8e 'irt+e of enforce&ent of an/ .le$ge or enc+&:rance is &I$e contrar/
to t8e .ro'isions 8ereofH
4.2.4 2f an/ -artner or transferee t8ereof instit+tes an/ .rocee$ing in a co+rt of
co&.etent ?+ris$iction for sale or .artition of an interest in t8e )oint *ent+re or in t8e -ro.ert/H
4.2.! 2n t8e e'ent a -artner fails to .a/ 8is res.ecti'e s8are of )oint *ent+re
o:ligation, incl+$ing :+t not li&ite$ to 8is a$$itional ca.ital contri:+tion .+rs+ant to Section 2.2,
at t8e ti&e t8e sa&e is $+e an$ .a/a:le, ti&e :eing of t8e essence t8ereofH .ro'i$e$, 8owe'er,
t8at t8e re&aining -artner &a/ at its o.tion a$'ance an$ .a/ s+c8 s8are. ,8e a&o+nt
so a$'ance$ an$ .ai$ s8all constit+te a $e:t $+e an$ owing :/ t8e $elinD+ent -artner an$ s8all
:e .ai$ +.on $e&an$, wit8 interest fro& t8e $ate of .a/&ent +ntil re.ai$, at t8e rate of twel'e
.ercent (12F) or t8e 8ig8est rate allowe$ :/ law, w8ic8e'er is less. S+c8 a$'ances s8all :e
$ee&e$ to c+re t8e $efa+ltH .ro'i$e$, 8owe'er, t8at at an/ ti&e :efore s+c8 in$e:te$ness is
re.ai$ t8e -artner &aking s+c8 a$'ance &a/, :/ t8irt/ (0) $a/sB notice in writing to t8e
$elinD+ent -artner reD+ire .a/&ent or wit8$rawal an$ .+rc8ase of t8e 2nterest of t8e $elinD+ent
-artner as .ro'i$e$ in Section 4.4, an$ a..l/ sai$ $e:t to t8e .+rc8ase .riceH or
4.2.6 2f a -artner :reac8es a &aterial .ro'ision of t8is Agree&ent an$ fails to
c+re sai$ :reac8 wit8in t8irt/ (0) $a/s after recei'ing written notice fro& t8e )oint *ent+re or
t8e non$efa+lting -artner s.ecif/ing t8e nat+re of t8e :reac8.
Section ).( Vo.unt#, T#n"%e. 2f a -artner $esires to sell all or an/ .art of
8is 2nterest or 8as recei'e$ an offer to .+rc8ase an$ $esires to acce.t s+c8 offer, 8e s8all first
offer to sell s+c8 2nterest to t8e ot8er -artner, in writing, as
-age "
follows@
4..1 S+c8 offer s8all :e a$$resse$ :/ t8e selling -artner to t8e nonselling
-artner at 8is a$$ress as liste$ :elow an$ :e &aile$, .ostage .re.ai$, :/ registere$ or certifie$
&ail. ,8e offer of sale s8all contain t8e .rice for w8ic8 s+c8 2nterest is offere$ for sale an$ s8all
incl+$e t8e na&e an$ a$$ress of s+c8 .erson or .ersons an$ t8e ter&s of t8e offer of .+rc8ase
recei'e$.
4..2 2f t8e nonselling -artner wis8es to .+rc8ase s+c8 2nterest offere$ for sale,
8e s8all a$'ise t8e selling -artner fort8wit8 wit8in fort/-fi'e (4!) $a/s of recei.t of t8e
notice of sale. ,8e nonselling -artner s8all :e $ee&e$ to 8a'e consente$ to t8e .ro.ose$ sale if
8e fails to gi'e t8e necessar/ notice wit8in t8e fort/-fi'e (4!) $a/ .erio$ an$ to .+rc8ase t8e
2nterest .+rs+ant to t8e ter&s of t8e offer.
4.. 2f t8e nonselling -artner $oes not wis8 to .+rc8ase s+c8 2nterest as
.ro'i$e$ in t8e ter&s of t8e selling -artnerBs offer, t8en t8e nonselling -artner s8all eit8er gi'e
t8e selling -artner notice of 8is election to (i) .er&it t8e selling -artner to sell s+c8 2nterest or
(ii) reD+ire t8at all )oint *ent+re .ro.ert/ :e sol$ an$ t8e )oint *ent+re $issol'e$ an$ ter&inate$
.+rs+ant to Article !. S+c8 notice of election &+st :e gi'en wit8in fort/-fi'e (4!) $a/s fro& t8e
$ate on w8ic8 t8e nonselling -artner recei'e$ notice of t8e .ro.ose$ sale. 2f t8e nonselling
-artner s8all fail to e>ercise t8e rig8t 8erein grante$ to .+rc8ase s+c8 2nterest or to reD+ire t8at
all of t8e .ro.ert/ owne$ :/ t8e )oint *ent+re :e sol$, t8en t8e selling -artner s8all :e free to
transfer s+c8 2nterest in accor$ance wit8 t8e ter&s an$ con$itions an$ to t8e .erson $escri:e$ in
8is offer of sale, for a consi$eration not less t8an t8at state$ in 8is offer of sale, :+t not
ot8erwise.
Section ).) S#.e to Re'#inin4 P#tne. A.on t8e occ+rrence of@
4.4.1 An 5'ent of Eefa+lt, as $efine$ in Section 4.2H or
4.4.2 A $ea$lock wit8 res.ect to a 6a?or Eecision, followe$ :/ t8e effecti'e
election to .+rc8ase :/ a consenting -artner +n$er Section .1H or
4.4. ,8e election :/ a -artner to wit8$raw fro& t8e )oint *ent+re, w8ic8
election s8all :e e>ercise$ :/ gi'ing t8e ot8er -artner written notice, t8e non$efa+lting -artner,
t8e nonwit8$rawing -artner, or t8e consenting -artner, as t8e case &a/ :e, s8all 8a'e t8e rig8t
an$ o.tion to ter&inate t8e )oint *ent+re :/ .+rc8asing t8e $efa+lting, wit8$rawing, or
nonconsenting -artnerBs 2nterest as .ro'i$e$ :elow in t8is Section 4.4 or to $issol'e an$
ter&inate t8e )oint *ent+re .+rs+ant to Sections !.1 an$ !.2. (S+c8 non$efa+lting,
nonwit8$rawing, or consenting -artner s8all 8ereinafter :e referre$ to as t8e ;4e&aining
-artner,; an$ t8e ot8er -artner s8all 8ereinafter :e referre$ to as t8e ;Selling -artner;). ,8e
o.tion of t8e 4e&aining -artner to .+rc8ase t8e 2nterest of t8e Selling -artner s8all :e e>ercise$
:/ ser'ing notice of intention to .+rc8ase +.on t8e Selling -artner wit8in fort/-fi'e (4!) $a/s
after recei'ing notice of t8e 5'ent of Eefa+lt or notice of nonconsent or wit8$rawal, as t8e case
&a/ :e. ,8e .+rc8ase .rice s8all :e eD+al to ninet/ .ercent (J0F) of t8e 'al+ation as
-age #
$eter&ine$ +n$er Section 4.! :elow an$ s8all :e .a/a:le, toget8er wit8 interest at t8e rate of
twel'e .ercent (12F) .er ann+&, in fo+r (4) eD+al se&iann+al install&ents s+fficient to a&ortiKe
re.a/&ent o'er a .erio$ of two (2) /ears. ,8e first .a/&ent s8all :e $+e t8ree () &ont8s after
t8e $ate of e>ercise of t8e o.tion, an$ s+:seD+ent .a/&ents s8all :e $+e on t8e sa&e $ate
t8ereafter +ntil .ai$ in f+ll. ,8e interest of t8e Selling -artner s8all i&&e$iatel/ 'est in t8e
.+rc8aser +.on $eli'er/ of notice of e>ercise of t8e o.tion to .+rc8ase t8ere+n$er. 5>ce.t
in t8e case of a sale following t8e occ+rrence of an 5'ent of Eefa+lt (in w8ic8 case t8e
$efa+lting -artner s8all .a/ t8e entire a..raisal fee), t8e Selling an$ 4e&aining -artners s8all
eac8 .a/ one-8alf (1M2) t8e costs of t8e a..raisal, an$ t8e Selling -artner s8all i&&e$iatel/
e>ec+te an$ $eli'er to t8e 4e&aining -artner a stat+tor/ warrant/ $ee$ in a for& s+fficient to
con'e/ all of t8e Selling -artnerBs 2nterest, incl+$ing all interest in t8e -ro.ert/ an$ all ot8er
-ro.ert/ owne$ :/ t8e )oint *ent+re, to t8e 4e&aining -artner. ,o e'i$ence an$ sec+re t8e
o:ligation of t8e 4e&aining -artner to .a/ t8e :alance of t8e .+rc8ase .rice, t8e 4e&aining
-artner s8all e>ec+te a .ro&issor/ note an$ $ee$ of tr+st (wit8 reasona:le release .ro'isions) in
s+:stantiall/ t8e for& of 5>8i:its A an$ N attac8e$ wit8 res.ect to t8e Selling -artnerBs 2nterest.
2n t8e case of a sale .+rs+ant to an 5'ent of Eefa+lt, t8is o.tion to .+rc8ase s8all :e in a$$ition
to an$ not in s+:stit+tion for an/ rig8t affor$e$ :/ law s+c8 as $a&ages an$ ot8er relief not
inconsistent t8erewit8H an$ in t8e e'ent of an/ inconsistenc/ :etween re&e$ies .ro'i$e$ :/ law
an$ +n$er t8is Agree&ent, t8e -artner not 8a'ing :reac8e$ t8is Agree&ent s8all 8a'e t8e o.tion
to elect a&ong an/ s+c8 rig8ts an$ re&e$ies. 2n t8e e'ent t8e 4e&aining -artner $eclines
to .+rc8ase t8e Selling -artnerBs 2nterest, t8e 4e&aining -artner &a/ elect to 8a'e t8e )oint
*ent+re $issol'e$ an$ ter&inate$ .+rs+ant to Sections !.1 an$ !.2.
Section ).- V#.u#tion. 2n t8e e'ent t8e -artners are +na:le to agree, t8e 'al+e of
t8e 2nterest of a Selling -artner in t8e )oint *ent+re an$ in t8e -ro.ert/ s8all :e $eter&ine$ as of
t8e $ate of s+c8 sale. 2n t8e e'ent t8e :+/er an$ seller are not a:le to agree +.on t8e fair &arket
'al+e at an/ s+c8 ti&e, t8e/ s8all agree +.on a 6e&:er of t8e A..raisal 2nstit+te (6A2)
.racticing in t8e greater Seattle area, to $eter&ine t8e 'al+e of t8e interest in t8e -ro.ert/ an$
an/ ot8er -ro.ert/ of t8e )oint 'ent+re, an$ t8e sa&e s8all :e :in$ing on all .arties. 2n t8e e'ent
t8e .arties are +na:le to agree +.on s+c8 an a..raiser, one s8all :e $esignate$ :/ t8e esta:lis8e$
.roce$+re of t8e A..raisal 2nstit+te w8en reD+este$ to na&e an i&.artial a..raiser, an$ 8is
$ecision s8all :e :in$ing on all .arties. 2f for an/ reason an a..raiser is not a..ointe$ wit8in
ninet/ (J0) $a/s after e>ercise of t8e o.tion to .+rc8ase, 8owe'er, t8en on ten (10) $a/sB notice
an$ reD+est :/ an/ -artner t8e S+.erior Co+rt of Ling Co+nt/ s8all a..oint an a..raiser to ser'e
8ere+n$er. 5>ce.t as .ro'i$e$ in -aragra.8 4.4 in t8e case of a sale following an 5'ent of
Eefa+lt, t8e :+/er an$ seller s8all eac8 .a/ one-8alf (1M2) t8e cost of t8e a..raisal. ,8e .rice for
t8e interest in t8e )oint *ent+re s8all :e its net :ook 'al+e, as $eter&ine$ :/ t8e .+:lic
acco+ntants reg+larl/ e&.lo/e$ :/ t8e )oint 'ent+re, or if t8ere :e none, :/ a certifie$ .+:lic
acco+ntant acce.ta:le to t8e 4e&aining -artner, as of t8e last $a/ of t8e &ont8 .rece$ing t8e
e'ent triggering t8e $eter&ination. S+c8 $eter&ination s8all :e &a$e, to t8e e>tent .ractica:le,
in accor$ance wit8 generall/ acce.te$ acco+nting .ractices an$ .rinci.les, consistentl/ a..lie$
an$, in t8e a:sence of fra+$, s8all :e concl+si'e an$ :in$ing +.on t8e .arties.
ARTICLE -.
1ISSOLUTION AN1 TERMINATION
-age J
Section -.1 1i""o.ution. ,8e )oint *ent+re s8all :e $ee&e$ $issol'e$ +.on t8e
occ+rrence of an/ of t8e following e'ents@
!.1.1. ,8e sale or co&.lete $is.osition of t8e )oint -OOO*ent+reBs assets an$ t8e
-ro.ert/H
!.1.2 ,8e agree&ent of t8e -artnersH
!.1. ,8e election of a 4e&aining -artner to $issol'e an$ ter&inate t8e )oint
*ent+re in t8e e'ent of t8e 4e&aining -artner (i) o:?ects to a .ro.ose$ sale an$ $eclines to
.+rc8ase t8e Selling -artnerBs 2nterest as .ro'i$e$ in Section 4. or (ii) $eclines to .+rc8ase t8e
wit8$rawing -artnerBs 2nterest .+rs+ant to Section 4.4H or
!.1.4 ,8e $eat8 or inco&.etence of an/ -artner.
Section -.& Te'in#tion. A.on $issol+tion for t8e reasons state$ in Section
!.1.1, !.1.2, or !.1., t8e )oint *ent+re s8all ter&inate an$ :e wo+n$ +.. ,8e )oint *ent+re
.ro.ert/ s8all t8ere+.on :e sol$ (an$ an/ -artner &a/ :e a .+rc8aser of all or
an/ .ortion t8ereof), its lia:ilities .ai$ or .ro'i$e$ for, an$ t8e re&aining assets $istri:+te$ to
an$ a&ong t8e -artners .ro rata in accor$ance wit8 t8eir ca.ital acco+nts, wit8o+t +n$+e
$ela/. An/ re&aining .rofits s8all :e $istri:+te$ .ro rata in accor$ance wit8 t8e -artnersB ca.ital
acco+nts as t8e/ stoo$ .rior to t8e &aking of t8e $istri:+tion reD+ire$ +n$er ter&s of t8e
.rece$ing sentence. 7eit8er t8e $issol+tion nor ter&ination of t8e )oint *ent+re, 8owe'er, s8all
affect t8e rig8ts of an/ .+rc8aser of a -artnerBs interest in t8e -ro.ert/.
ARTICLE 0.
GENERAL
Section 0.1 Notice". An/ notices or $e&an$s .er&itte$ or reD+ire$ 8ere+n$er
s8all :e in writing sent :/ certifie$ or registere$ &ail, .ostage .re.ai$, a$$resse$ to eac8 .art/ at
t8e a$$ress set fort8 :elow@
999999999999@ 999999999999999999999999999999999999999999999999
999999999999999999999999999999999999999999999999
999999999999999999999999999999999999999999999999
999999999999@ 999999999999999999999999999999999999999999999999
999999999999999999999999999999999999999999999999
999999999999999999999999999999999999999999999999
)oint *ent+re@ 999999999999999999999999999999999999999999999999
999999999999999999999999999999999999999999999999
999999999999999999999999999999999999999999999999
or to s+c8 ot8er a$$resses as t8e .arties &a/ fro& ti&e to ti&e $esignate in writing. All notices
s8all :e $ee&e$ recei'e$ on t8e $ate t8e .ost&ark is affi>e$ :/ t8e +nite$ States -ostal Ser'ice.
-age 10
Section 0.& Counte!#t". ,8is Agree&ent &a/ :e signe$ in one or &ore
co+nter.arts.
Section 0.( Go3enin4 L#9. ,8is Agree&ent an$ t8e o:ligation of t8e -artners
8ere+n$er s8all :e inter.rete$,
constr+e$ an$ enforce$ in accor$ance wit8 t8e laws of t8e State of Was8ington.
Section 0.) Entie A4ee'ent. ,8is Agree&ent contains t8e entire agree&ent
:etween t8e .arties 8ereto relati'e to t8e for&ation, o.eration, ter&ination an$ $issol+tion of t8e
)oint *ent+re. 7o 'ariations, &o$ifications, or c8anges 8erein or 8ereof s8all :e :in$ing +.on
eit8er .art/ 8ereto +nless set fort8 in a writing signe$ :/ t8e .arties 8ereto.
Section 0.- :#i3e. 7o consent or wai'er, e>.ress or i&.lie$, :/ an/ -artner to
or of an/ :reac8 or $efa+lt :/ t8e ot8er in t8e .erfor&ance :/ t8e ot8er of 8is o:ligations
8ere+n$er s8all :e $ee&e$ or constr+e$ to :e a consent or wai'er to or of an/ ot8er :reac8 or
$efa+lt in t8e .erfor&ance :/ s+c8 ot8er .art/ of t8e sa&e or an/ ot8er o:ligations of s+c8
-artner 8ere+n$er.
Section 0.0 Ot+e Intee"t". 5ac8 -artner &a/ $eal wit8 t8e )oint *ent+re, &a/
8a'e ot8er :+siness interests, &a/ engage in an/ ot8er :+siness or tra$e, .rofession or
e&.lo/&ent w8atsoe'er, an$ &a/ own, sell, an$ $eal in real estate an$ ot8er .ro.erties for 8is
own acco+nt, eit8er se.aratel/ or in co&:ination wit8 ot8ers an$ s8all not :e reD+ire$ to $e'ote
8is entire ti&e to t8e :+siness of t8e )oint *ent+re.
Section 0.7 P#tition. 5ac8 -artner irre'oca:l/ wai'es an/ an$ all rig8t 8e &a/
8a'e to &aintain an/ action for .artition as to 8is +n$i'i$e$ interest in t8e )oint *ent+re .ro.ert/
or t8e -ro.ert/, or to co&.el an/ sale of t8e )oint *ent+re .ro.ert/ or t8e -ro.ert/ +n$er an/ law
or laws now e>isting or 8ereinafter enacte$.
27 W2,75SS W1545OC, t8e .arties 8ereto 8a'e e>ec+te$ t8is Agree&ent as of t8e $a/
an$ /ear first a:o'e written.
<@ 999999999999999999999999999999999999999999
N/ 999999999999999999999999999999999999999
2ts 999999999999999999999999999999999
=@ 999999999999999999999999999999999999999999
N/ 999999999999999999999999999999999999999
2ts 999999999999999999999999999999999
5<12N2,S@
A -7ote
-age 11
N -Eee$ of ,r+st
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-age 12