transfer or encumber any such Interest shall be void. Either partner may record a memorandum of this Agreement setting forth the foregoing restrictions on transfer of the Property in the place where real property records are recorded in King County, Washington.
Section 4.2 Defaults and Involuntary Transfers. Each of the following shall constitute an "Event of Default":
4.2.1 If any Partner makes an assignment for thebenefit of creditors or applies for appointment of a trustee, liquidator or receiver of any substantial part of his assets or commences any proceedings relating to himself under any bankruptcy (including Chapter XI) reorganization, arrangement or similar law;
4.2.2 If any such application is filed or proceeding is commenced against any Partner and such Partner indicates his consent thereto or an order is entered appointing a trustee,
liquidator or receiver or approving the petition in any such proceeding which order remains in effect for more than sixty (60) days;
4.2.3 If any sale or other transfer of any Interest, whether made voluntarily or by operation of law or by the virtue of enforcement of any pledge or encumbrance is m~de contrary to the provisions hereof;
4.2.4 If any Partner or transferee thereof institutes any proceeding in a court of competent jurisdiction for sale or partition of an interest in the Joint Venture or in the Property;
4.2.5 In the event a Partner fails to pay his respective share of Joint Venture obligation, including but not limited to his additional capital contribution pursuant to Section 2.2, at the time the same is due and payable, time being of the essence thereof; provided, however, that the remaining Partner may at its option advance and pay such share. The amount
so advanced and paid shall constitute a debt due and owing by the delinquent Partner and shall be paid upon demand, with interest from the date of payment until repaid, at the rate of twelve percent (12%) or the highest rate allowed by law, whichever is less. Such advances shall be deemed to cure the default; provided, however, that at any time before such indebtedness is
repaid the Partner making such advance may, by thirty (30) days' notice in writing to the delinquent Partner require payment or withdrawal and purchase of the Interest of the delinquent Partner as provided in Section 4.4, and apply said debt to the purchase price; or
4.2.6 If a Partner breaches a material provision of this Agreement and fails to cure said breach within thirty (30) days after receiving written notice from the Joint Venture or the nondefaulting Partner specifying the nature of the breach.
Section 4.3 Voluntary Transfer. If a Partner desires to sell all or any part of his Interest or has received an offer to purchase and desires to accept such offer, he shall first offer to sell such Interest to the other Partner, in writing, as
follows:
transfer or encumber any such Interest shall be void. Either partner may record a memorandum of this Agreement setting forth the foregoing restrictions on transfer of the Property in the place where real property records are recorded in King County, Washington.
Section 4.2 Defaults and Involuntary Transfers. Each of the following shall constitute an "Event of Default":
4.2.1 If any Partner makes an assignment for thebenefit of creditors or applies for appointment of a trustee, liquidator or receiver of any substantial part of his assets or commences any proceedings relating to himself under any bankruptcy (including Chapter XI) reorganization, arrangement or similar law;
4.2.2 If any such application is filed or proceeding is commenced against any Partner and such Partner indicates his consent thereto or an order is entered appointing a trustee,
liquidator or receiver or approving the petition in any such proceeding which order remains in effect for more than sixty (60) days;
4.2.3 If any sale or other transfer of any Interest, whether made voluntarily or by operation of law or by the virtue of enforcement of any pledge or encumbrance is m~de contrary to the provisions hereof;
4.2.4 If any Partner or transferee thereof institutes any proceeding in a court of competent jurisdiction for sale or partition of an interest in the Joint Venture or in the Property;
4.2.5 In the event a Partner fails to pay his respective share of Joint Venture obligation, including but not limited to his additional capital contribution pursuant to Section 2.2, at the time the same is due and payable, time being of the essence thereof; provided, however, that the remaining Partner may at its option advance and pay such share. The amount
so advanced and paid shall constitute a debt due and owing by the delinquent Partner and shall be paid upon demand, with interest from the date of payment until repaid, at the rate of twelve percent (12%) or the highest rate allowed by law, whichever is less. Such advances shall be deemed to cure the default; provided, however, that at any time before such indebtedness is
repaid the Partner making such advance may, by thirty (30) days' notice in writing to the delinquent Partner require payment or withdrawal and purchase of the Interest of the delinquent Partner as provided in Section 4.4, and apply said debt to the purchase price; or
4.2.6 If a Partner breaches a material provision of this Agreement and fails to cure said breach within thirty (30) days after receiving written notice from the Joint Venture or the nondefaulting Partner specifying the nature of the breach.
Section 4.3 Voluntary Transfer. If a Partner desires to sell all or any part of his Interest or has received an offer to purchase and desires to accept such offer, he shall first offer to sell such Interest to the other Partner, in writing, as
follows:
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