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<br />ARTICLE VI <br /> <br />DAMAGE, DESTRUCTION AND EMINENT DOMAIN; USE OF NET PROCEEDS <br /> <br />Section 6.1. Eminent Domain. If all of the Property shall be taken permanently under the <br />power of eminent domain or sold to a government threatening to exercise the power of eminent <br />domain, the Term of this Lease Agreement shall cease as of the day possession shall be so <br />taken. If less than all of the Property shall be taken permanently, or if all of the Property or any <br />part thereof shall be taken temporarily under the power of eminent domain, (1) this Lease <br />Agreement shall continue in full force and effect and shall not be terminated by virtue of such <br />taking and the parties waive the benefit of any law to the contrary, and (2) there shall be a <br />partial abatement of Lease Payments as a result of the application of the Net Proceeds of any <br />eminent domain award to the prepayment of the Lease Payments hereunder, in an amount to <br />be agreed upon by the City and the Authority, and so certified by such parties to the Assignee, <br />such that the resulting Lease Payments represent fair consideration for the use and occupancy <br />of the remaining usable portion of the Property. <br /> <br />Section 6.2. Application of Net Proceeds. <br /> <br />(a) From Insurance Award. The Net Proceeds of any insurance award resulting from any <br />damage to or destruction of any portion of the Property by fire or other casualty shall be paid <br />by the City to the Assignee, as assignee of the Authority under the Assignment Agreement, and <br />applied to the prepayment of Lease Payments as described in Section 10.2 hereof. <br /> <br />(b) From Eminent Domain Award. The Net Proceeds of any eminent domain award <br />resulting from any event described in Section 6.1 hereof shall be paid by the City to the <br />Assignee, as assignee of the Authority under the Assignment Agreement, and applied to the <br />prepayment of Lease Payments as described in Section 10.2 hereof. <br /> <br />(c) From Title Insurance. The Net Proceeds of any title insurance award shall be paid by <br />the City to the Assignee, as assignee of the Authority under the Assignment Agreement, and <br />applied to the prepayment of Lease Payments as described in Section 10.2 hereof. <br /> <br />Section 6.3. Abatement of Lease Payments in the Event of Damage or Destruction. Lease <br />Payments shall be abated during any period in which, by reason of damage or destruction, <br />there is substantial interference with the use and occupancy by the City of the Property or any <br />portion thereof (other than any additional buildings or improvements that do not comprise part <br />of the Property as described in Section 5.2 hereof) to the extent to be agreed upon by the City <br />and the Authority. The parties agree that the amounts of the Lease Payments under such <br />circumstances shall not be less than the amounts of the unpaid Lease Payments as are then set <br />forth in Exhibit D, unless such unpaid amounts are determined to be greater than the fair rental <br />value of the portions of the Property not damaged or destroyed (giving due consideration to <br />the factors identified in the last sentence of Section 4.4(d)), based upon the opinion of an MAl <br />appraiser with expertise in valuing such properties or other appropriate method of valuation, <br />in which event the Lease Payments shall be abated such that they represent said fair rental <br />value. Such abatement shall continue for the period commencing with such damage or <br />destruction and ending with the substantial completion of the work of repair or reconstruction. <br /> <br />-15- <br />