COVENANT FOR MAINTAINING THE ONGOING MINISTRIES AT ST. STEPHEN’S ANGLICAN, ST. STEPHEN EPISCOPAL AND ST. CHARLES ANGLICAN CHURCHES (CONGREGATIONS) July 6, 2006 I. Preamble. The parties to this agreement are the Diocese of Olympia and the above named congregations who are reaching this accord in the spirit of reconciliation and to provide a time for the worldwide Anglican Communion to address serious issues over which its members are not in agreement. It is the intention and commitment of all parties to remain members of the Anglican Communion. The Principle behind this agreement is one of people being in relationship. Relationships among the parties are defined by, but not limited by, this Covenant. II. Terms. A. This agreement shall continue in effect until June 30, 2014 at which time it will expire unless extended by mutual consent of all parties. B. The parties will not pursue any claim and/or action over the ownership of or title to property (real or personal) of the above described congregations. The parties wish to preserve and maintain their current rights with respect to ownership of the property. Accordingly. The statute of limitations (“limitations period”) for any claim of any party is tolled during the period of this Covenant and, additionally, no portion of this period may be argued or alleged in support of any claim or defense of laches, waiver or estoppel C. The Diocese of Olympia will not charge the congregations rent, fees or assessments. D. The Diocese of Olympia will respect the independence of the congregations and not use the facilities of said congregations except as provided in this agreement. E. Documented capital improvements made by St. Charles Anglican, Poulsbo, or St. Stephen’s Anglican, Oak Harbor, will either be deducted or reimbursed on a depreciated or adjusted basis, as agreed, in the event of any property settlement, or other legal resolution, following the expiration of this agreement. The above named congregations will maintain the buildings in good repair. F. St. Stephen’s Anglican Church will maintain its current schedule of worship. The St. Stephen Episcopal congregation will have use of the property occupied by the St. Stephen’s Anglican congregation for Sunday worship at a mutually agreed upon time. St. Stephen Episcopal congregation may use the chapel at any hour on, but not limited to, Sunday. Reasonable requests for use at other times will be considered. A process for consideration begins with conversations between persons appointed for the purpose from the two congregations in Oak Harbor. Should an impasse result, the Venerable Duncan Clarke, Anglican Archdeacon, and the Episcopal Canon to the Ordinary of the Diocese of Olympia will confer. In the event of further impasse, The Rt. Reverend Edward S. Little, II, Bishop of the Diocese of Northern Indiana, or, if unavailable, some one mutually agreed to by the parties, will be called upon for a binding decision. G. St. Stephen Episcopal congregation agrees that liturgical services will be limited to those found in the Authorized Book of Common Prayer and the Book of Occasional Services. H. This Covenant is agreed to by the parties present, listed below, with the understanding that the requisite governing bodies of the Diocese of Olympia and the vestries of the three congregations shall be required to ratify these actions. The parties further agree that the Episcopal Church (TEC/ECUSA) is not a necessary or essential party to this Covenant. I. In the event of an allegation of material breach of this agreement, both parties will follow the process of conferring. If the effort to confer is unsuccessful, the parties will take the matter to the Rt. Rev. Edward S. Little, II, Bishop of Northern Indiana, or if unavailable, someone mutually agreed to by the parties. Bishop Little may decide the format for hearing the matter. A party may request binding arbitration from Bishop Little’s decision before Judge Terrence Carroll, ret., or, if unavailable, a mutually agreed upon person. That person will make a decision based on the laws of the State of Washington, including any and all remedies available in law and equity. The arbitrator will have the authority to award attorney fees and costs to the substantially prevailing party. The decision of the arbitrator will be final. _________________________________ _________________________________ ________________________________________________________________________________ ___________________________ * The formal and corporate identity of St. Charles Anglican is Anglican Church of St. Charles. Poulsbo, Kitsap County, Washington, Inc. and of St. Stephen’s Anglican is St. Stephen’s Anglican Parish, Oak Harbor, Island County, Washington, Inc.  St. Stephen Episcopal Congregation is an unincorporated association.