HomeMy WebLinkAboutEC17-206 - Other - Marquee on Meeker - Phase I - Section 10: Completion and Performance Guaranty - 04/02/2018Section 10
COMPLETION ANT' PTRFORI\{ANCD C I.JAITANTY
l"HlS COMpl-ltr1'lON ANI)J'lrRI:ORMANCf GUAIIANl'Y {this "Guaranty") is marle
and givel efl'ecrive as of April XIZOI8 (thc "liffcctivc l)ate"), by FNW INC". a Washington
corpr-rration {"Guarantor"). 1o and in lavor ol CII'Y OF KLINT'. a Washinglon nlunicipal
corporation {"Seller"),
REC-'TTALS
A. Seller and Marquee on Mceker l.,LC. a Washington lirnited liability conlpeny
("Buyer") entered into a Real Estate llurcl:ase and Sale Agreen:ent with l,easelOption 1o Purchase
datecl as r:f May 5.2{)17, as amended by Amendniettt to Real fistale Purehase and Sale Agreement
witir Lease/Optirn to Purchase dated as of Sr:plentber 20, ?017 (as anlended" the "Purchase nnd
Sale Agreement'o). fi:r the sale by Seller. ancl the purchase by Buyer" of cenain real property
locateiJ in King County, Washinglnn, legally described on ExhrbrlA-1 attached herelo (the "Phase
I ltroperty") anri lbr the lease r,vith option to purchasc by Seller, as landlord, and the lease witlt
gptior: to purchase by Buy*r. as tenant, o1'ce(ain adjoining realproper"ly located in King County"
Washiagton, legally described on Sxhibir A-? altached hcr*to (the "Phase 2 Property"). The
Phase I Property and the Phase 2 Properly are collectively re{i:rrcd to herein as the "Propertics,"
g. Concunently with the execulion al'this Cuaranty. Seller is selling the Phase I
lrroperty to l3uyer pursuarrt to the terms of llre Plrrchase a:rd Sale Agreement.
C. Cloncurrently with the exec.ution of this Guaranty, Seller is also leasing the Phase 2
Properly to lluyer pursuant to the lerms r:f that certain l-ease {witlr Oplion to Purchase) of even
date herewith by and belween Seller and lluyer (the "Phase ? Lease Agrcemenf').
D. As a condition 10 the sale of the Phase I Ploperly and lease of the Phase 2 Property
by Seller to Buyer, Seller required Guaranlcr lo enter into this Cuararty.
E. Cuaranlcr ackno*'ledges thal Guaranlor will receive a elirect or indirecl nraterial
benefit from the sale oftlre Phase 1 Property. and lcase ot'the Phase 2 Prcpefly" to Buyer and thercfore
is willing to enter into and provide lhis Cuaranty.
F. Iixcepr where atherwise pruidcd in this Guaranty, all initially-capitalizrd terms used
herein shall have the n'rcanings ascribed 1o them in the Purchase and Sale Agreement,
AGREIIMRNT
NOW, TI-IEREFORIi, in eonsideratiiln of the sale and lease of the Properlies by Seller to
Buyer and for other good and valuable consideration,llre receipt and sufficiency of which is hereby
acknowledged. Ouarantor, for itself, its succe$sors and assigns, hereby covenants and agrees as
follows:
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eomplelion and perl'<rnn liu$ranly 12
l. llILFlNl'I'lONS. ljor pu{roscs of lhis (iuaratltl':
1.1 "Dcvclopmcnt Agree ment" mcans that cerlain h4arquee on Meeker Project
l)eyelopmcnt Agreement, b1'and benveen Sellcr and lSuyer relalcd ti: lhc Proiccl, as approved by
the City o1'Kent Council on Augusl 15. 1017. and el'fectivs as of Augusl23.20l7 '
1.2 "Per$on" lneails arry individual, sole proprietorslrip. lirnited patlnership.
joint venture, unincorporatecl organiz.ation. inslilulior, partnership. corporalion. associaliern, lrusl,
lirnited liability conrpany" or otlter legal cntity'
1.3 "Phase I Projcct lmprovenrents" rleans all irnprcvenrents carrtemplaled
and permitted untlcr llie Developmenl Agrcement for lhc {ull ilevclopment olthe Phase 1 Property,
bul not including the Projr-"cl lnlraslruclure'
1.4 "Project" ntsans lhe llhase I llropert\'. Phase I Proiect lmprot'elnents antl
Project Infraslrusture.
1.5 "Irrojcct Agreemcnfs" nleans the llurcltass ar"ld Sale Agreenrent. the Phase
2 Lcase Agreement, the Developmenl Agreement. and the Option 1o ltepurchase Agreement.
1.6 "Ilroject Inlrastructure" rneaus (aJ all public and private on-sile and ol'f'-
site utility and other inlraslruclure inrproven-renls. including, wirhout limitation. tvalet stoml
waler, sanitary sewer *tilities anrl lraificlpedcstrian improvemenls, required to supporl thc t'ull
developmelt of lhe Phase I Property, all as contemplatcd under lhe Development Agreemenl,
including. without limitation" the "Meel h4e on Meeker" improvements and Phase I Prnperty geo-
piers and {b) all public and privale on-site and off-si* mainline ulility and other infraslructure
in1proo"nl*nts, inchding, u'ithout limitation. mainline u'aler. storm walsr and sanitary sewer
gtiiities, and iraffic/pedestrian improvcments. requircd to support the lull developrnent of the
Phase 2 Properry, alt as conlenrplatecl under ihe Developmenl Agreemcnl, including. rvithcut
limitatiol,lhe "Meet Me on h4eeker" inproventcn{s, but. lbr clarification. nol including the Phase
2 Property geo-piers or lourtdation wark.
t.7 "substantial Complrtion" or -'substantialll' Completed" means, wilh
re$psct tc any improvcnrent or work, such improvement or work has been completed in accardance
with all applieable pcnnils and lalvs and has bcen inspected and approved by the appropriate
authorities as eviclcnced by a certificate olicccupancy for all residsntial porrions of the Prdect"
sub"iec{ only to minor punch-lisl item; (minor details of construction" decoration and n:echanical
acljustmerrts) that do nol interlbre wiih use and operalion of the itnprovemenl or work in question.
2. CUARANTY. Guarantor hcreby unconditionally and absolutcly wan'ants and
guarantees to Seller that: (a) construction of the Pro"ject shall bs Subskntially Cornpleted on or
[efare the date that is thirty (30) months a{1er the dale on wlrich Buyer commenccs conslrnction
of the Project; (b) the Prciect shall be conslructed and cornpleted in accordance with the
Developmenl Agreement, withnut substantial dsviation theret'ront unless approved by Seller in
writing; {c) except lbr a firsl-priority deed of trusl or security Inlcrest in the Project granled to
Iluyer's construction lender (thar is any institutional bar* or lender which is not allllialed with or
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trcad\l-lAl-.\llrvtrbclrl Joirrt Venlurcll'h,$e I tikrstng I)ttcs
-!urnrplction ard perlirrm guaranty r'?
related to l3uyer or any o{'its principals or any affiliates or subsidiaries of the l}uyer. any ol'its
principals ot th.i, lamily menrtrers), the Proiect will be construcled and complete<i Jiee and clear
erl'all-liens and encumbrances, including without lirnitation all mechanics'licns. materialmen's
liens, and cquitable liens: and (d) allco$ts of constructing and cexnpleting ihe Prcrjecl willbe paid
when due. i'he cbligations clescribcd in plcccding clauses {.a) * (d) arc referreel 1o herein as ths
"G uarrntced 0bligations"'
If the Irroject shall not be constructed and corttpleted as provided above. Cuararrtor shall:
{a) diligenfly proceed to cure such <Jefault and procure completion of tlre Froject al Cuarantor's
*g1* "oit "nd
**p*nre in con:pliancc with all olthe reqrircmcni provided abo,'e; (lt) fLrlty pay and
dischargc all claims l'or laboi performed and rnaterial and services furnished in cannection with
t5e corritrlction of the Projeci; anil 1c) pay suclr amounls as may be necessary to release and
clischarge all claims ol stop notices. mechanics' liens. materialmsn's liens, and equitahle liens. il'
any. thal may gcme into existence in connecticx wiilr the ccxstruction of the Prtrject.
3. NO RT,DUCTION OR DISCHARGII OF GUARANTI'AD OBLIGATIONS.
Cuarantor hereby consents and agrees lo each of the fallowing, and agrees thal Guarantor's
obligatiops un,Jei this Guaranty shall no1 be rcleased, diminished, impaired" reduced. ar adversely
al.feited by any of the fcrllcwing, and waives any common law, equitable, statufCIry or other rigbts
(includilg, wiihout liniitatiein. rights to nolice) which Cuarantor miglrt o{herwise have as a resull
of or in con$ection with any of the fnllowing:
3.t Any waiver or release by Seller o{'any of the terms. provisions, conditions,
gbligarions, and/or agreements coristitn{ing all or any part the Cuaranteed Obligations or any of
the Projecl Agreements.
3.2 The elirect or indirect. voluntary or involunlary. sale, col'tvcyance,
assignnrent. lease, or other transfer of any intcrcsl in lluyer. all or any portion o1'the Properties (or
any improvement thereon fiom time to time) artdlar any of the Proiect Agreements.
3.3 Any anrendmenl. modification ol. or supplemcnt 1o any ol the llruiect
Agreemenls, or any assignmenl or tra$sfer lhereof.
3i.{ Any exercise or non-exercise of any right, power. remedy or privilege, or
granlil4 extension of time, under this Ouaranl-v or any of the Project A-qreements or anlr waiver,
consenl. extension. renewal. or mndification ihereol.
3.5 Any bankruptcy, insolvency, rcorganization, arrangement, readjustmeut,
cornpositi*n, liqui<lalion or sinilar law e'rr proceeding related ta lluyer or any other Person or any of
theii respective assets and/or *ny order of any court, govemment or agency thereof purporting to
reduce, amend, or othem'ise aflbct any r:bligation eir liability ol'Bu1'er ur:der any of the Prciect
Agreements.
3.6 Any release cr clischarge nf Buyer or any oil1er guaraltlor or any o$er Person
in any receivership. bankruptcy, winding up, or nther creditor proceedings,
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5,7 All,chalge in ll:e namc. pur?osi3s. capitalization. owncrslrip. lllanagemcnt. or
organization i:f l3uyer.
Without limiting the lbregoing, Seller may anrer:d or n:odif-v un3'ol{he Project Agreetnents
arcl etthenvise may Oeallvith Buyer and iis successors and asrigns or any ather guarantor or any txhcr
person, without notice to or eonsent of Guaranlr:r, and without afl'ecting. clirninishing. or otherwise
i nrpai ri ng thc I iabi I ity ol C uerrantnr hercuneler'
4. NATL'RE OF GUARANTY. 'l'he liability of Cuarantor Ltndcr this Cuaranty is an
absolure and unconditional guaranty ol paymcnt arcl ol'perlbnnance and not of collectability' 'l'he
liability of Cuar*ntor hereuJrler is primary and coextensive rvith that of lluyer and its suecessors and
assigns anrl is ioinl artrj scveral" l-his Cuaranty shall he a continning guaranty' No aclion or
proieding t",roiiglrr or institutecl under lhis fiuaranly and no lccovely in pursualtce thercolshall he a
f* o,. 6efense to any iurther action or proceeding u,hich mali !. brought under tl'ris Guaranty by
rrasou of any furthci de{'ault or eielaults hereunder or in tlre perfonnance and obssrvance of any of
the lcnns. covenantso conditions, and provisions in this Guararrty and/or any of the Proiecl
Agreements. Ouaranlor's pcrfirmrance of a portiorl. but not all, o1'the {iuaranleed Obligations, shall
in*no rvay limit. alfect, olo,lily or abridge Guarantor's liahilitl' for that porlion of the Guaranleed
Obligatiols rvhich is not compietcd as recluired uncier ilris Cuarzurty. Without in any way lirniting lhe
g"n.;tity ol the {bregoing, in the event that Sellcr is awarded a judgnienl in any suit brought to
,rnforce Cuarantor's covenant 1o perlonn a portion ol'ilre {iuaranteed Obligations, such judgrnent
shall in no way be deepred to release Cuarzurtor from ils covenant to perlorm any otllcr portion of the
Guaranteed Otligatious which is not the subjcct of such suit. Seller shall not be obligated to cxhaust
its recourse agairist Buyer, or atly other guarantor or any otlrer Person, or any security it may have lor
{.he satislaction of the obligations hereby guaranleed befcre being entitlcd to perlbrmance by
Crnranlor 6f each ald every one ot'the obligations hereby guatanteed. Seller may, at its sole
discretion and to the extcnt pcrmitted by larv, exercise its rights under this Cuaranty eilher prior 1o.
concurrently wilh, or a{ler, the excrcise of its remedies fr:r tJelault against Buyer or any olher Person
a1d i1 this regard. Cuarantor hereby expressly waives any limitations on a cottcuffent exercise o1'
remedies under this Guararty whjch nray be inrposed under any applicable laws. This Guaranty is in
adrjition to and not in sutrstirution fur any other guaranties held or which rnay herea{1er be hekj by
Seller, and Cuarantor is jointly and severally liable with any such other gtmra*tors lor th* paymenl
and perlormance o l thc Guaranteed Ohl igations.
S. RJGI{TS AND REMItrDIBS. lf Guarantor shall lail 1o perlorm promptly as
pr6vicled in this {iuaranty within thirry (30) days afler written notice liont Seller, Seller shall have
the foltrowing rights and rerrledies:
S.t Perform Guaranteed Obligations. Seller. a1 its oplion" bul \ryilhout any
obligation tn do sei, rnay proeeed to perfonn on behalf of Cuaratrlor any and allwolk on ihe Project
and iny af the orher Cuaranteed Obligalions and 1o pay any costs incurred in co*neciion with the
work and perfornance, Cuarantor. upon Seller's demand, shall prnmptly pay 1o Seller all such
sums expended.
i.2 Cure Defaults. Seller, at its option, but without any obligation to do so.
rnay cure any delbults, including without limitation, paying any unp*id bills and liens, including.
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tread\l'lAl.illivcrbend Joinr Venturtr\llltnrc I ('losing l)ttes
I conplctittn and pcrtirntt gurrantl r'2
q'ithout lirnitation. lhosc lbr construclion" labor. and rnalerials. Cuaranlor. upon Sellcr's dcmand.
shall prornptly pay to Seller all suclr sunis expended.
5.3 Specilic Pcrformancc. Fronr tir:.re to lim€ anel rvithout lrrst requiring
pcrli:rmance ein lhe part of Buyer, to requirc (luaranlor specil'ically to perftrrm (iuarantor's
cbligalions under this Guaranty. b1' actiorr al laur or in equill,or both. and lurthcr. 1o collecl in any
such action, compensation lbr all loss. cost. darnagc. irrjury and expcnse sustaincd cr ineurred by
Seller as a direct cr indirecl consequcnce of Llut'er's or Cuaranltx's l'ailure to perlbrnr.
5.,1 Othcr ltights and llcmcdies. ln addition, Seller slrall have and may
excrcise any or all ol'the rights and rcnredies it rnay have availablc'at laiv. in equity. orctherrvise.
6. FINANCIAL COVtrNANTS. 'l-hc following {irrancial covenan{s" based *n the
definitions shorvn below. rnust be nrainlaincd by Guarantor during the term of this fiuaranty"
f,-lomplinnce u'ith the f'nllr"nving flnanqial sovt:naris shall be rneasured semi-annually as o1'the
lbllowing dates: March 3l''r and September 30rl'. Cuarantor shall certi{y that it is in compliance
with the {bllorving financial sovenants by delivering a cerlifiealc of conrpliance in lorm reasonably
requesled by Scller, along rvitlr supllortirlg docunrentatian (e.g., sclredule $f assets and liabilities
and bank and brokcrage slaterirents). whieh certificatc al'corrpliance shall be provided wirhin
thirly (3tl) days a{ier the end of each scmi-annul period; provided, irorvever, that if a particular
certilicate *1'compliancc signed by Guararrtor is nol received by Scller by the rcquired deaclline,
Seller ressn/es tlre right lo delennine Cuarantor's ccn:pliance rvith the lemrs hereclbased on *thcr
inlbrrratian available to Scllcr.
Notrvithstanding the ltrregoing paragraph. Cuaranlor nray salisf.v thc Mi;rirnum Adjusted
Net Worth requirenrenl in $qgie!_6.2 below by aggregating Guaranlor's Adjusled Nel 'V/orth
logetlrer with the Adjusted Nel Worth of each o1'Brelt Jacobsen and .lohn W. McKenna, Jr.
(collectively. the "Shareholders"). llach of l"he Shareholders is a sharcholder irr (iuarantcr anil
sball only bc eonsidered a Shareholder under this Guaranly as long as they rcmain a shareholder
in Ouarantor, If Cuarantor elects ltr aggregate the Ad.lusted Net Worth of the Shareholders with
tha{ af Cuaranl*r ibr pu$oses nf satislying lhe Minimunr Ad.iusted Nel Worth covsnant in Section
6.2 below, Guaranlor shall providc to Seller tlre san.te type o{'supporling documentation conce ming
lhe Shareholders' nel wortlr as Guaranlor is required lc provide pursuant to the preceding
paragraph. l"or avr:ridancc ol doubt, if Guarantcr r:lecls lrr aggregale the Sharehalders' Adusted
Net Worth with thal of Cuaranlor for purprises of satisfying the Minimum Ad.iusled Net Worth
covenart in SeEtion_ls.Z belorv. thE: Shareholders rl'ill no{ bcconre guarantars hereunder and will
nol assume the obligatiors ol'Cuaranlor hereunder" 'l'he current Shareholders shall each cxeeute
the joinder prnvision at the end of this Guaranty lo acknowledge their uonsen{ 1o Cuaranli:r
providing 1o Scller supporting infarmalion conc,eming the fiharcholders' Adjusted Net Worlh, ir:
the evenl that Guaranlor eiects to aggregale the assels of thr: Sirareholders uith those of Cuaranlor
as dcscribed in this paragraph.
Failure by Cuaranl.or tCI satisfy each of thc lallowing financial sovenanis shall constitute a
delbult undcr this Gr"raralrtr,. Ten:lts used in such llnancial covenanls are as defineri Lrelow,
$.t Minimum Lig.+rirlity. (luarantor shali maintain a lolal Unencunrbered
Liquidity of not less than $3.000.000.
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tr*nd\l"lAl.\Rircrhcnd.loint Venturc\l'hasc I Closinc ll0r::s
5 rnmpletion and pcrlornr guarurtl' v?
6,2 Minimum Adiustetl Net Worth. firnrantor artd Shareholclers shall
nrainlain an aggrfgate nrinimum Adiusti:d Nct Worth of not less than $ I 0.000.000
6.3 Dcfinitions. l;or purposes ol the foregoing tlnancial covenanls, the
leillowing tenns shall have lhe {bllowing meanings:
o'I)ebt" rneans, for Guarantor or any Shareholder, as applicable, all liabililies.
whelher now $r hereafter existirrg, volunta:y or involuntary. due or not due.
liq uidated or unliquidated.
..@''tneal1s.forGuarantororanyShareholder'.suchparty.s
total assets, excluding (1J intangiblc assets {i.e., goodwili, trademarks. patents,
copyrighls, organizalional expenses. and sinilar intangit:le itens" but ineluding
leaseholels and leasehold improvcments). {2}treasury siock, {3) cash held in a
sinking or other similar fund cstablishcd fbr the purpose of'redenption or other
retirenrenl o{'capital stock, (4} rcsen es for depreciation, depletion, obsolescelrce,
or anlortization of propcrlies and othcr t"eseiyes lor appropriations oi retained
eamings thal have besn or should bc established in connecticn with such party's
business. and (5) any revaluation or other rvrite up in book value of a,ssets
subsequent lo the hscal year of such parly; less Debt.
"Unencumbered Liquidity" means the sum of caslr , markeiah:le stocks and hands.
ar'rd other near-cash investnrents held by liuaranlor and immediately available with
unimpaired value: but not including pledged assets or IRA. 401{k). annuity. or lru$t
accounts.
6,1 Construction Lender ll,csuiremenfs. Notwithstanding rhe Minimum
I.,iquidity and the Minirnum Adusled Net Worth of requirements se{ Ibflh in Sections 6.1 and 6,2
above, if any lender providing the ceinslruction loan to Buyer for the construction of the Project
requires a $eater Minimum Liquidity antount and/or a grealer Mininiiun Adjusted Net Worth amerunt
(and/or any similar finansial covenant) applicable to Cuarantor. any Shareholder andlor any other
person or party providing a guaranty {irr completion of the I'roject construction and/or repalment of
the Proiect construction loan. then concurrent with the closing of such construclicn loan Guarantor
and. if applicable, Shareholders agree tn increase thc Minimurn Liquidity and/or Minirrum Adjusted
Net Worth of this Guaranty {or provide such similar financial covenant required by the construetion
lerrder), as applicable, 1r: match lhe grealer sum rcquired under the Project constructiol k:an.
7. WAIVERS. To the n:a,ximum exierlt penuitted by law, Cuarantor hereby waives the
Irrllowing: {a) notices of the acceptance of this Guaranfy; {b} any statute of limitations affecting
Guarantor's liability hereunder r:r lhe enforcement thereol=; (c) all defenses based upon any insolvency
or disability o1'Buyer and any and all olher waivable deftnses; and {d) all principles or provisions of
law which con{'lict with the ternrs of tltis Guaranty. Moreover. Cuarantor agrees that its obligations
shall nol tre aflected by any circumstances which constitute a legal or equitable discharge of a
guaranlor or surety.
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tread\llAl,\liivrrrbcnrl Joint Venturr'\Phasc I tilosing l)ocs
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8. SLIBROCATION. Cluarartor agrces that until such time as all the obligations ol'
lluyer zurd its successors and assigrrs undcr 1hc Pro.iect Agrccmcnts have bcen lirlly and irevocably
paid and discharged. t1o paymcnt by Ouaranlor pllrsuiillt to any provision hereof shall entitle
(.iuarantor" by subreigalion or erlhenvise. tc the rights ol Scller under any of the Projecl Agrcetnettts.
Guarartor firrther agrees that. to the exlcnt the u,aiver of its righl erl'subrogation as scl lbrth herein is
found iry a couft of competent jurisdiction to be vcid or voidable for any reason. any rights of
subrogation Guarantor may have against Buyer or its successor and assigns shall be junior and
subordinate to all rights that Seller has under tl:e Project Agreemenls, including, without lirnitation.
tlre right ol Seller lo exercise thc righl of repurchase under the Oplion to Repurcluse Agreement.
9. TERMINATION OF CUAII.ANTYIRETNSTA'TAMITNT IN CI'RTAIN
CIRCUMSTANCES. 'l'his Cuaranly slrall cantinue until {A) thc Prerject has been Substantially
Conrpleted in accordance with lhe Development Agrcement, witlrout substantial deviatian
there fronr unlsss approved by Scller in writing anci free antJ clear ol'all liens and encumbrances as
pravided above, and (ll) all obligations ol Guar{nlor to Seller *nder this Guaranty have becn
p*rfiorrnetl in full. If at any lime any payment of the anrounl payable by lluyer or its successor or
assigns to Seller under any ol'tire Pro.iccl Agrcements or is rescindcd or must be otherwise reslored
or relurned upon the insolvency. bankruptcy or rcorganization ol'Buyer or any olher Person or
oilrerwise, the Cuaranlor's obligations hereunder with respr:ct to sueh paymenl shall be reinstaletl
as though *uch payment has bcen due but not made at suclr time. The covenants and lcrms
ceintained in this Seclion 9 shall survive the payrnent a:rd perfonttance ol the Guaranleed
Obligaiions arrd any lerrninalion ol'this Guaran{y.
10. RBPIf,ESENTATIONS AND WAIIRANTII,S. Cuarantor rcpresents and
warranls to Seller thal:
10.1 Guarantor now has and rvill continue 1o have full and complete access tn
any and all inlbnnation soncerning the llroperties and Buyer. Buyer's financial stalus and Buyer's
ability 1o pay and perl'ornr the obligations owed 1o Seller under the Project Agreements. Guaranlor
has reviewed and approved copies of the Prcrject Agreements. So long as Guarantor's olrligations
hereunder remain unsatisfied nr owing, Cuarantor shall keep lully infornred as to all aspecls of
liuyer's financial candition and the pertbnnance olsaid obligations.
10.2 No consent of any other person, ineluding, wilhout limitation, any creditors
of {iuarantor. and no license, permit, apprcr,al or authCIrization of. exemption by, notice or repon
ltr, or registration, filing or declaration with, any governmental authority is required by such
Guarantor in cernncction with this Guaranty or the sxecuiiorr. delivcry, performance, r,alidity, or
enlbrceability of tliis Cuaranty and all obligations required hereunder. This Guaranty has bccn
dr"rly executed and deJivered by Guarantcr. and conslitutes the legally valid and binding obligalion
olGuaranlor enforceable against Guaranlor in accordance with its lenrrs.
l{1.3 'l'he execution, delivery and perlormance of this Cuaranty will neit violate
any pruvisinn of any existing law or regulalion binding on Cuarantror, or any order, judgment,
award or decree o1'any courl. arbitrator or governmenial authcrity binding on Guarantor, or of any
rlclrlgage, indenture, lease, conlracl or other agreenent, inslrumenl or undeflaking to which
Guarantor is a party orby whiclr Guaranlor or any r:f Guarantor's assets may bc bound, and will
not result in. or require, the creatiort or imposition of any lien on any of Guarantorns property,
3841ru86 (r.312(ill8 - 7 - cornplelion and pcrfirnr gulrantv v2
trcadii !Al-rllivcrbcnd loint Vcnurrc\Pha,ie I {--ilosina [)ocs
assets or revenucs pursuani to &e provisions oi'any such morlgage, indenture, lcase, contracl or
other agreenrert. instrumelrt or undertakirrg,
10.,t Neither Seller nor ary olher Person has made any representalion. warranty
or slalemenl to Guarantor in order to induce Guamnlc;r lo execule this Cusranlv.
10.5 As of the Ei'fective Dale, and a{ier giving el'fecl ta this Guaranty and the
conlingent obligalion evidenced hereby, Guarantor is and will be solvent and has and will have
assets that. fairly valued. exceed Guaranlor's obligations. liahilities {including contingent
liabilities) and.debis. and has and will havs property and assels sul'ficient to satisfy and repay
Guarantor's obligations and I iabilities.
I l, ALJTHORIZATION. The individuals exesuting this Guaranty each wanant and
represent thal this Cuaranty was duly authorized by all individuals or entitir:s whose authorization
was required lbr this Guaranty to be effective and binding on Ouaranlor.
12. SUCCffiSORS AND ASSIGNS. This Guaranry shall be binding upon Guarantor,
ils successoru and assigns and shall inure 1o rhe benef it of and shall be enforceable by Seller and its
successors a::d assigns. l'lris Guarant),may be assigned in whole or in parl by Seller and it successcrs
and assigns.
l-f. NOTtCtrS, Unless applicable law reqnires a different method of giving natice,
any and all notices, dernands or olher communicalions required or desired to be given hereunder
by any pany {sollectively, o'notice$") shall be in rvriting and shall be validly given or made to
anolher party if delivered either personally or by Federal Express or other ovemight delivery
service r:f r*cognized standing, or if depr:sited in the United Slates Mail, certified. registered, or
express mail with postage prepaid, or if sent by electronis mail. If such notice is personally
delivered, it shall be conclusively deemed given at the time of such delivery. If such notice is
delivered by Federal Express or other overnight delivery service ofreccgnized standing. it shall
be deemed given the next business day afler the deposit thereof with such de livery service. postage
prepaid. lf such nolice is mailed as provided herein, such shallbe deerned given two (2) business
days afierthc depr:sit thereof in the United States Mail, pnstage prepaid. lf such nntice is given
by electronic mail, it shall be deemed given on the date shcwn on the slectronic confinnation of
transmission, Each such nolice shall be deemed given only if properly addressed to the parly t.r
whom such natice is to be given as follows:
Se!ler:City of Kent
230 Fou*h Avenue South
Kent, WA 9803?
Attn: Pat Fitzpatrick arrd Kurt lJanson
Emai I : pfi tzpatr.ick@kentwa.gov
k}anson@kentwa.gov
2ti{ l/O&fr 03126/l ll
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I
With a copy ltl Fcsler Pepper PLI.C
I l l l Third Ave::ue, Suile 3000
Seattle. WA 98101-32qq
Atln: Beth {llark
Emai I : beth.cl ark@foster.com
Guarantor:FNW lnc.
c/o Landmark Development Croup
2711 West Valley l-lighway Nor"th Suite 200
Auburn. WA 98001
Attr"r: IlrettJacobsen
Emai I : bjaeobsen@,ln w-ine.conr
With a copy to l'lAL lteal Lstate lne.
2025 First Avenue, Suite 7t]0
Sealtl*, WA 98121
Ann: .lonalhanManheinr
Enrail : jrnanhei rn@Jhalrealestate.com
and Alston Courlnage & Bassetli LLP
1420 5th Avenue, Suite 3650
Seafile, WA 98101-4011
Attn; Tom Read
Email: tread@alcourl.com
Any party hereto may change its address far the purpose of reeeiving notices as herein
provided by a written notice given in the manner afcrresaid to the other party hereto.
14. AMANDMENT, \ryAtVBR. No nrodification. tern:rinalion or amendment o1'this
Guaranty may be made except by written agreement r:f the parlies, No failure by Seller to insist
upon the strict pe.r{bfflance of any covenant, agreement, pr condition of this Ouaranty or to
exercise any right or rcmedy shall constilute a waiver of any such breach or any other covenant,
agreemenl, term or condition. No waiver shall aff'ecl or aller lhis Guaranly. and each and every
covenanl, agreemenl, term and conditiott of this Guaranty shall ccrrtinue in full f'orce and eft'ect
wilh respect to any ather lhen existing or subsequent breach thereoll
15. IIEADINGS; ENTIRETY" l'he article and paragraph headings of this Guaraniy
are for convenience only and in no way limit or enlarge the scope or meaning af the language
hereof. This Guaranty embodies the ertire agreement between the parties and supersedes all prior
agreemenls a:rd understandings relating to the subject matter hereof.
16. COSTS AND EXPENSES. ln the event of any lawsuit, mediation, arbitration or
legal proceeding is brought to enlorce any of the terms hereof, the prevailing party shall be entitled
to recover its costs and expenses incurred in connecticn with such action or proceeding (including
any appeals thereiiom) lronr the non-prevailing par1y. including reasonable attomeys' and court
fees and costs.
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17. SEVIIRAIIILITY. Il'any onr:: or nrore ol'tlre provisions o1'this fiuaranty, or the
applicability of any such provisiorr 1o a specific siluation. sliall be heltl invalid or unen{brceable,
such provision shall be modilled to the e.\lent neccssar): to makc it or its application valid and
enforceable, ard the validity and cnlbrceatrility nl'ali other provisions of this Guaranty and all
otlier applicaliorrs ol'any such provision shall not br: affccted thcreby.
18. CONSTIiL}CI'ION. Guarantr.rr ackrtowledgrls that it and its counsel have
reviewed and revised this Cuaranly and that the rule of construction to the effect that any
ambiguities are to be resolved against the draliing party shall not bc errrployed in the interpretatiorr
of this Guaranty (including the exhibitsi or any amendments thereto, and the same shall be
construed neither fcr nor against Seller or Cuarzurtor. but slrall be given a reasonable interpretation
in accordancc rvitlr thc plain mcaning srf its lcrms and the intent of the parlies.
19. GOVERNING LAW; JURTSDICTION; WAtVliR OF JURY TRIAL. This
Guarzurty shall be governed by ancl construed in accordance wilh the inlernal laws eif tl"rc stale of
Washinglon" '1he venue of any judicial proceedings relaled to this Cuaranty shall be in Kent,
Washinglon, unless olher$'ise mulualll, agreed in writing by the parties, Cunranlor inevocably
subnrits to the exclusive jurisdiction of the federal or state courts located in Kent. Washington.
GUARANI'OR WAIVIS 1'0 TFIE FLJl-LlrSl'EXI'HNT PliRMIl'1'BI] BY I-AW T'RIAL BY
JLJRY OF AI-L DISPTJTHS ARISING OL''T OF OR RL:I,A]]NG TO T]-IIS GUARANI'Y.
20. TIME. "f)ay" as used herein means a calendar day and'"business day" nreans any
day on which national banks irr the location where dre Properlies are localed are generally open
lar business" Unless olherwise specified. in computing any period of time deseribed herein, Lhe
day of the act or event a{1er which the designated period ol'lime begins to run is not to be included
and the lasl day of the perir:d so computed is to be included at, unless such last day is a Saturday.
Sunday or legal holiday fur national banks in thc location where the Pmperties are localed, in
which evenl the period shall run until the end ol'the next day which is neithsr a Saturday, Sunday,
or legal hcliday. The lasl day olany period of time described herein shall be deemed to end at
5:30 p.nr. {itacilic), Time is o1'the essencs in the perlorrnancc oI'this Guaranty.
21. EXECUTION. Withoul limiting the manner in which execulion of this fi*aranty
may be accomplished, executicn may be ef&cted by electronic mail or lbcsimile lransmission of a
signature page of this Guaranty exeeuled by Cuarantor. If Guarantor eflects executit;n by
elecuonic mail or facsimile transmission erf a signature page, Cuararlor shall also promptly deliver
to Seller an original counterpart signed by Guarantor, bui the lailure of Cuarantor to furnish such
r:riginal counterpart shall not invalidate the execution of this Cuaranty effected by electrcnie mail
or facsimile lransmission.
[signature on following pagel
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Its:
IN WI"INESS WI{EREOF, the undersigned has execuled this Completion and
Iterformance Guaranty cffective as of the Effective Date first hereinabove written.
GUARANTOR:
FNW .!a
B
Name:
Joinder:
The undersigned Shareholders, Brett Jacobsen and John W. McKenna, Jr., are executing this
Guaranty for purposes cf consenting to the provisions of Section 6 of this Cuaranty, by which
Guarantor may provide Seller with evidence of the Adjusted Net Worth of each Shareholder in
order to satisfy the Mini
the
to Guarantor as required for Guarantor to provide Seller the supporting
ish such Shareholder's Adjusted Net Worth.
Jr
mum Adjusted Net Worlh covenant of Guarantor in Section 6"3 above.
Shareholders agrees to furnish such financial schedules and statements
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EXHIBIT A-I
Legal Derffiption sfPhase 1 Property
IOTS I AND 2 OF CITY OF KENT SHORT PI,ATNO. SP-20I7.I, RECORDED LINDER
RECORDINC NO. ?OI 80321 9OOOO4, IN KINC CO{"NTY, WASHINGTON.
2t4r/08603/261n
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complction and perform Buar6g, t,
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EXHIBIT A.?
Lesal Description of Phase 2 Property
LOTS 3, 4 AND 5 OF CITY OF KENT SHORT PLAT NO. SP.zOI?.I, RECORDED I]NDER
RECORDING NO. 2O18O32I9OOOO4, IN KTNG COLTNTY, WASHINGTON.
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