Common use of Alternative Appraisal Value Clause in Contracts

Alternative Appraisal Value. If a valuation as provided for in Section 5.1 is not recorded for a particular year, the last previous valuation shall be used; except that if no valuation is recorded within eighteen (18) months preceding the proposed disposition, then in the event that the parties cannot agree to use the last previous recorded valuation, the value per share shall be determined by three appraisers. Within fifteen (15) days of the date that use of the last previous recorded valuation was rejected, the rejecting party shall select an appraiser and notify the other of the appraiser's name and address. Within fifteen (15) days after receipt of that notice, the remaining party shall select an appraiser and notify the first party of the name and address of such appraiser. If any party is unable to or unwilling to agree upon an appraiser within fifteen (15) days of the time designated for such selection, then the appraiser shall be selected by the presiding judge of the King County Superior Court. The two appraisers selected by the parties shall promptly appoint a third appraiser as soon as practical. The three appraisers shall evaluate and agree upon the value per share of the Stock as soon as practical after their selection; the vote of two such appraisers shall be sufficient to establish the value per share. The appraisers need not be licensed appraisers but should be experienced in business matters and shall be independent of all parties. Each party shall pay the fee charged for that party's appraiser; the fee charged by the third appraiser and any costs related to the appraisal shall be borne equally by each party.