Laserfiche WebLink
deemed to be approval by the Family Limited Partner. BUFU <br />5.5 Damage or Destruction. <br />(a) Lessees to Rebuild. Except as set out in Section 5.5(b) below and subject <br />to the rights of Mortgagee and the terms of the Leases, in the event there is any damage or <br />destruction to any portion of the Building as a result of fire or other casualty, the Building shall <br />be repaired and reconstructed in accordance with the Plans and Specifications, as modified by <br />the Lessees, and the provisions for repair and reconstruction as set forth in this Section 5.5. <br />Subject to the rights of Mortgagees, if all such damage or destruction has occurred within the <br />portion of a Building located entirely within one Lessee Parcel, then any cost of repair or <br />reconstruction above the amount of insurance proceeds received for the loss shall be paid by the <br />Lessee of that Lessee Parcel. If the damage or destruction affects more than one Lessee Parcel, <br />then the Joint Maintenance Committee shall coordinate the repair or reconstruction activities and <br />the cost to repair or reconstruct which are above the amount of insurance proceeds received for <br />the loss shall be divided in an equitable manner (reflecting the amount of repair work needed for <br />each Lessee Parcel) between the Lessee Parcels. The Lessees shall be obligated to pay any such <br />cost within sixty (60) days of the date of the damage or destruction. <br />(b) Lessees Fail to Rebuild. Subject to the terms of the Leases, if any portion <br />of the Building is materially damaged or destroyed by fire or other casualty ("materially <br />damaged or destroyed" is defined for the purpose of this Section 5.5(b) as any damage for which <br />the cost of repair or reconstruction, as determined by a licensed contractor selected by the <br />Lessees, is equal to or greater than Five Hundred Thousand Dollars ($500,000), as adjusted by a <br />fraction whose numerator is the Consumer Price Index (1982-84=100) for all Urban Consumers <br />published by the United States Department of Labor, Bureau of Labor Statistics for the San <br />Francisco -Oakland -San Jose area, or any successor thereof ("CPI"), last published on the date of <br />damage or destruction, and whose denominator is the CPI last published prior to <br />, 2014), and if the Lessees agree not to rebuild, then the Family Parcel Lessee, <br />shall use all reasonable efforts to sell the Project; provided, however, any vote by the Lessees <br />regarding whether or not to rebuild in the event the Building is materially damaged or destroyed <br />shall be tallied based on the Lessee's Designated Shares. Subject to the rights of each Lessee's <br />respective Institutional Lenders in regards to each Lessee's respective share of the proceeds, all <br />insurance proceeds received shall be divided among the Lessees in an equitable manner <br />reflecting the amount of damage sustained by each Lessee's Parcel, and the sales proceeds <br />attributable to the Building shall be distributed to the Lessees in proportion to the fair market <br />value of each Lessee Parcel as determined at the time of sale of the Project. The fair market <br />value of each Lessee Parcel shall be determined by an MAI qualified appraiser jointly selected <br />by the Lessees. If the Lessees cannot agree on an appraiser, then each Lessee shall select an <br />appraiser and the selected appraisers will select another appraiser and this appraiser shall be the <br />appraiser to determine the fair market value of each Lessee Parcel. <br />(c) Insurance Trustee. Subject to the rights of Mortgagees described above, <br />all insurance proceeds and other amounts required to be paid in connection with any work of <br />repair or restoration to be undertaken hereunder shall be paid by, or behalf of, the Lessees to an <br />24 <br />