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DSCC-57520\2494968.2 22 September 17, 2021 If the insurance proceeds exceed the costs of restoration, the excess proceeds shall be paid into reserves and held for the benefit of the Association. 8.3 Inadequate Insurance Proceeds or Uninsured Loss. If the insurance proceeds are insufficient to restore the damaged Improvement or the loss is uninsured, the Association shall add to any available insurance proceeds all reserve account funds designated for the repair or replacement of the damaged Improvement, if any. If the total funds then available are sufficient to restore the damaged Improvement, the Improvement shall be restored. If the aggregate amount of insurance proceeds and such reserve account funds are insufficient to pay the total costs of restoration, a special assessment shall be levied by the Association up to the maximum amount permitted without the approval of the Members in accordance with the limitations set forth in this Declaration and by Applicable Laws. If the total funds then available are sufficient to restore the damaged Improvement, the Improvement shall be restored. Any special assessment levied to cover a shortfall in available repair proceeds shall be allocated among the Condominiums as described in Section 6.8 without regard to the extent of damage or destruction to the individual Condominiums. If the total funds available to the Association are still insufficient to restore the damaged Improvement, then the Association first shall attempt to impose an additional special assessment pursuant to Section 8.4 below and, second, use a plan of alternative reconstruction pursuant to Section 8.5 below. Any special assessment levied to cover a shortfall in available repair proceeds shall be allocated among the Condominiums without regard to the extent of damage or destruction to the individual Condominiums. If the Members do not approve such actions, then Section 8.6 shall apply. 8.4 Additional Special Assessment. If the total funds available to restore the damaged Improvement as provided in Section 8.3 are insufficient, then a meeting of the Members shall be called for the purpose of approving a special assessment to make up all or a part of the deficiency (“Additional Special Assessment”). The Additional Special Assessment shall be allocated among the Condominiums as described in Section 6.8 without regard to the extent of the damage or destruction to the individual Condominiums. If the amount of the Additional Special Assessment approved by the Members and the amounts available pursuant to Section 8.3 above are insufficient to restore the damaged Improvement, or if no Additional Special Assessment is approved, the Association shall consider a plan of alternative reconstruction in accordance with Section 8.5. 8.5 Alternative Reconstruction. The Association shall consider and propose plans to reconstruct the damaged Improvement, making use of whatever funds are available to it pursuant to Section 8.3 and Section 8.4 above (“Alternative Reconstruction”). All proposals shall be presented to the Owners. If Approved by the Owners, then the Association shall contract for the reconstruction of the damaged Improvement in accordance with the plan of Alternative Reconstruction making use of whatever funds are then available to it. If no plan of Alternative Reconstruction is agreed to, then the provisions of Section 8.6 shall apply. 8.6 Sale of Condominiums. If the damage renders one or both of the Condominiums uninhabitable for commercial purposes, and the Improvements will not be restored in accordance with the provisions of Sections 8.3, 8.4 and/or 8.5, the Association, as the attorney-in-fact for each Owner, shall be empowered to sell the Condominiums in their then present condition. The proceeds from the sale, together with the insurance proceeds received and any unexpended reserve funds, after deducting therefrom the Association’s sale expenses, including commissions, title and recording fees, legal and related costs, and the payment of any Association liabilities, including a set aside amount for contingent liabilities as determined by the Association, shall be distributed among the Owners of Condominiums and their respective Mortgagees in proportion to the respective fair market values of these Condominiums immediately prior to the date of the event causing the damage as determined by an independent appraisal made by a qualified real estate appraiser selected by the Association. Thereafter the Association shall wind up and dissolve the Association.