7.3. SR 07-20-2015 - Laserfiche WebLink

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(e) The Casualty shall have occurred more than twelve (12) months prior to the Maturity Date. (f) No tenant shall have the right to terminate any Lease as a result of the Casualty. If any of these conditions shall not be satisfied, then City shall have the right to use the insurance proceeds to prepay the Purchase Price Note. If any insurance proceeds shall remain after completion of the restoration, repair and rebuilding of the Mortgaged Property, they shall be disbursed to Developer, or at the City’s discretion, used to prepay the Purchase Price Note. Section 3.3 Condemnation. If any portion of the Mortgaged Property shall be taken, condemned or acquired pursuant to exercise of the power of eminent domain or threat thereof (a “Condemnation”), Developer shall: (a) give immediate notice thereof to City, and send a copy of each document received by Developer in connection with the Condemnation to City promptly after receipt; and (b) diligently pursue any negotiation and prosecute any proceeding in connection with the Condemnation at Developer’s expense. If an Event of Default shall be in existence, or if Developer, in City’s reasonable opinion, shall not be diligently negotiating or prosecuting the claim, City is authorized, but not required, to negotiate and prosecute the claim and appear at any hearing for itself and on behalf of Developer and to compromise or settle all compensation for the Condemnation. City shall not be liable to Developer for any failure by City to collect or to exercise diligence in collecting any such compensation. Developer shall not compromise or settle any claim resulting from the Condemnation if such settlement shall result in payment of $10,000 or more less than City’s reasonable estimate of the damages therefrom. All awards shall be paid to City. Section 3.4 Use of Condemnation Proceeds. City shall make the net proceeds of any Condemnation received by it (after reimbursement of City’s out-of-pocket costs of collecting and disbursing the same) available to Developer for restoration, repair and rebuilding of the Mortgaged Property, subject to the following conditions: (a) There shall be no Event of Default in existence at the time of any disbursement of the condemnation proceeds. (b) City shall have determined, in its reasonable discretion, that the cost of restoration, repair and rebuilding is and will be equal to or less than the amount of condemnation proceeds and other funds deposited by Developer with City. (c) City shall have determined, in its reasonable discretion, that the restoration, repair and rebuilding can be completed in accordance with plans and specifications approved by City (such approval not to be unreasonably withheld), in accordance with codes and ordinances and in accordance with the terms, and within the time requirements in order to prevent termination of any Lease, and in any event not less than six (6) months prior to the Maturity Date. C-8 455958v10 SJS EL185-31