Housing Consortium of the East Bay Ground Lease 20231030

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32 Leased Premises (as encumbered by this Ground Lease) and the Improvements. If the Leased Premises are restored as in contemplated in Section 12.2 above, Lessee shall be entitled to recover the costs and expenses reasonably incurred in such restoration out of any Net Condemnation Award payable to Lessee. Thereafter, if the condemning authority does not make separate awards, the Parties agree that any Net Condemnation Award will be allocated as follows on a proportionate basis reflecting the Parties' respective interests in the Leased Premises and Improvements and the remaining duration of the Term as follows: Section 12.5 Award on Total or Substantial Taking. In the event of a total or substantial taking, the award shall be apportioned as follows, in the following order: (a) To Lessor that portion of the award equal to the fair market value of the Leased Premises and Improvements. Any "bonus value" attributable to this Ground Lease shall be paid to Lessor. (b) To Lessee, that portion of the award equal to the fair market value of the Lessee’s leasehold estate. (c) The balance, if any, shall be allocated to Lessor. Section 12.6 Award on Partial Taking. In the event of a partial taking, after application of the Award for restoration, any remaining portion of such award shall be apportioned as follows, in the following order: (a) To Lessor, that portion of the award attributable to the fair market value of the portion of the Leased Premises taken. (b) To Lessee, that portion of the award equal to the fair market value of the Lessee’s leasehold estate in the Leased Premises. (c) The balance, if any, shall be allocated to Lessor. Section 12.7 Lessor Reservation of Rights. Notwithstanding any provisions in this Ground Lease to the contrary, nothing herein does or shall be construed to limit or require the Lessor to exercise its ability to condemn any property, including the Leased Premises, in accordance with applicable law. Nothing in this Ground Lease does or shall be construed as requiring the Lessor to pay to Lessee, or any other third party with an interest in the Leased Premises, any amount of money, as compensation for alleged condemnation or otherwise, if Lessor (or its successor) seeks to enforce any of the rights and obligations under this Ground Lease and the Regulatory Agreement and any executed attachments thereto. Except when Lessor exercises its ability to condemn the Leased Premises by adoption of a resolution of necessity and pursuant to other provisions of applicable law, Lessor shall not be a construed as pursuing or effectuating a Taking or acting as a "condemning authority" under this Ground Lease. ARTICLE 13. DAMAGE OR DESTRUCTION DocuSign Envelope ID: 6E2EA799-6D74-41E3-B3EE-3CD67DC0ACD0