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be distributed to all the Unit Owners or lienholders, as their Interests may appear, in proportion
to the Common Element interests of all the Units.

14.4.3 Reallocation. If the Unit Owners vote not to Repair any Unit, that Unit's
Allocated Interests are automatically reallocated upon the vote as if the Unit had been
condemned under Article 15, and the Association promptly shall prepare, execute, and record an
amendment to the Declaration reflecting the reallocations.

14.5 Restoration by Board. If the damage (regardless of whether such damage IS
Significant) is to be repaired pursuant to Section 14.4, then:

14.5.1 Contract and Contractors. The Board shall have the authority to employ
architects and attorneys, advertise for bids, let contracts to contractors and others, and to take
such other action as is reasonably necessary to effectuate the Repair and Restoration. Contracts
for such repair and restoration shall be awarded when the Board, by means of insurance proceeds,
sufficient Assessments, and funds borrowed by the Association (or any combination thereof), has
provision for the cost thereof. The Board may further authorize the insurance carrier to proceed
with Repair upon satisfaction ofthe Board that such work will be appropriately carried out.

14.5.2 Insurance Trustee. The Board may enter into a written agreement in
recordable form with any reputable financial institution or trust or escrow company that such
firm or institution shall act as an insurance trustee to adjust and settle any claim for a loss in
excess of Fifty Thousand Dollars ($50,000), or for such firm or institution to collect the
insurance proceeds and carry out the provisions of this Article.

14.6 Decision to Terminate. In the event of a decision to terminate the Condominium
and not to Repair and Restore damage and destruction, the Board may nevertheless expend such
of the insurance proceeds and funds of the Association as the Board deems reasonably necessary
for Emergency Work (which Emergency Work may include, but is not necessarily limited to,
removal of the damaged or destroyed buildings and clearing, filling and grading the real
property), and the remaining funds, if any, and Property shall thereafter be held and distributed as
provided in RCW 64.34.268.

14.7 Unit Insurance Alternative. If the Unit Owners have elected to maintain separate
individual insurance under Section 13.8, then the Unit Owner (not the Association), at such
Owner's sole cost, shall be solely responsible for repairing and restoring all damage to the Unit.

ARTICLE 15. CONDEMNATION

15.1 In General. Ifa Unit is acquired by condemnation, or if part ofa Unit is acquired
by condemnation leaving the Unit Owner with a remnant of a Unit which may not practically or
lawfully be used for any purpose permitted by the Declaration, the award must compensate the
Unit Owner for the Owner's Unit and its appurtenant interest in the Common Elements, whether
or not any Common Elements are acquired. Upon acquisition, unless the decree otherwise
provides, that Unit's Allocated Interests are automatically reallocated to the remaining Units in

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