Declaration of Horizontal Property Section 15

.15. Insurance

The insurance other than title insurance which shall be carried upon the Property and the property of the Owners shall be governed by the following provisions:

(a) Insurance by Association

(1) Insurance on the Buildings, including but not limited to the Units, the Common Areas and Limited Areas, against loss or damage by fire and against loss or damage by risks now or hereafter embraced by standard extended coverage and vandalism and malicious mischief endorsements, shall be purchased by the Association in an amount sufficient to prevent the insured from being a co-insurer within the terms of the applicable policies, but in any event in an amount not less than one hundred percent (100%) of the full insurable replacement cost thereof. "The "full insurable replacement cost" of the building, including the Units, the Common Areas and Limited Areas, shall be determined from time to time by the Board of Directors, which determination may be based upon appropriate insurance appraisals, insurable replacement cost shall be deemed to be the cost of restoring the Building, including but not limited to Common Areas, Limited Areas, Units, and any part thereof, to substantially the same condition in which they existed prior to damage or destruction. The cost of any and all such appraisals shall be Common Expenses except that the additional cost of insuring any additions or alterations to his Unit or Limited Areas shall be paid by the Owner in addition to his share of Common Expenses.

(2) Comprehensive public liability and property damage insurance against claims for personal injury or death or property damage suffered by the public or by any Owner, occurring in, on or about the tract or in, on or about the streets and passageways and other areas adjoining the Tract, such public liability and property damage insurance to afford protection to such limits as the Board of Directors shall deem desirable (but in no event for less the $1,000,000.00 with respect to liability for personal injury to one person arising out of a single accident) shall be purchased by the Association.

(3) Such workman's compensation insurance as may be necessary to comply with applicable laws shall be obtained and maintained by the Association as a Common Expense.

(4) Employer's liability insurance in such amount as the Board of Directors shall deem desirable shall be obtained and maintained by the Association as a Common Expense.

(5) A fidelity bon indemnifying the Association, the Board of Directors and the Owners for loss of funds resulting from fraudulent or dishonest acts of any officer or employee of the Association or of any other person handling the funds of the Association, the Board of Directors or the Owners in such amount as the Board in its discretion shall deem desirable may be obtained and maintained by the Association as a Common Expense.

(6) The Association shall obtain such other insurance (including insurance with respect to officers' liability) in such reasonable amount as the Board of Directors shall deem desirable.

(b) Requirements

The premiums for the above described insurance, except as otherwise provided in the paragraph 15 shall be Common Expenses. All insurance provided for in subparagraph (a) shall be effected under valid and enforceable policies issued by the insurers of recognized responsibility authorized to do business in the State of Indiana. No Owner or any other party shall have priority over any rights of a Mortgagee pursuant to its mortgage in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to, or a taking of a Unit, Common Areas, or Limited Areas. All policies of insurance described in this paragraph 15 shall name as insured each Owner and the Association. If a Unit is subject to a mortgage and the Association has been notified of the mortgage, the Mortgagee shall be named as an insured under a mortgage endorsement. In addition, all policies insuring against public liability and property damage shall contain an endorsement or clause whereby the insurer waives any right to be subrogated to nay claim against the Association, it officers, members of the Board of Directors, the Declaring, any management agent, their respective employees and agents and the Owners and occupants and shall cover claims of one or more insured parties against other insured parties.

Written notice of the insurance and any changes therein or termination thereof shall be promptly furnished by the Association to each Owner of a Unit or Mortgage of a Unit whose interest may be affected by such changes in insurance.

(d) Distribution of Proceeds

Proceeds of insurance policies received by the Association shall be distributed to or for the benefit of the Owners and their Mortgagees in the following manner:

(1) Reconstruction or improvement

In case of fire or any other casualty or disaster, other than complete destruction of any Building, the improvements shall be reconstructed and the insurance proceeds applied to reconstruct the improvements in the same manner, style and quality as they were originally constructed. A Mortgagee shall be notified by the Association in a timely fashion in the event of substantial damage to or destruction of any Unit or any part of the Common Areas or Limited Areas. In the event of complete destruction of any Building, the Building will not be reconstructed and the insurance proceeds, if any, shall be divided among the Owners and Mortgagees as their respective interests may appear in accordance with the Percentage Interest of each Owner and the Property shall be considered removed from the Regime under Indiana code 32-1-6-28 unless by a vote of two-thirds of all of the Owners a decision is made to rebuild the Building, in which case the insurance proceeds shall be applied towards such rebuilding and any excess of construction costs over the insurance proceeds shall be paid by the Owners according to their Percentage Interests. The determination of whether any building is totally destroyed shall be made by a vote of the Owners at a meeting called for that purpose after prior written notice to all Owners. Mortgagees shall be bound by the Owner's decision and may consent by written instrument. In the event sums are required in excess of the insurance proceeds in order to rebuild the Building in the event of a casualty, the additional sums required shall be assessed as part of the Common Expenses and shall constitute a lien from the time of assessment as provided under Indiana statutes and in these instruments.

(2) Failure to Repair or Rebuild

If the Owners decide a Building is totally destroyed after a casualty or disaster, the Property shall be deemed to be owned in common by the Owners according to the Percentage Interest of each Owner with liens and rights to partition being handled as set forth in Indiana Code 32-1-6-21 as amended and supplemented from time to time.

(e) Association as Agent

The Board of Directors is hereby irrevocably appointed as agent and is hereby granted a power coupled with an interest, as attorney in fact, for each Owner and for each holder of any other interest in the Property (excepting Mortgagees) to adjust all claims arising under the insurance policies purchased by the Association and to execute and deliver releases upon the payment of claims.

(1) In no event may the insurance coverage obtained and maintained by the Association hereunder be brought into contribution with insurance purchased by individual Owners or their Mortgagees.

(2) Each Owner may obtain additional insurance at his own expense; provided, however, that no Owner may exercise his right to maintain insurance coverage in such a way as to decrease the amount which the Association, on behalf of all the Owners, may realize under any insurance policy which the Association may have in force at any particular time. Any Owner who obtains individual insurance policies covering any portion of his Unit shall be required to file a copy of such individual policy or policies with the Association within 30 days after purchase of such insurance. Each Owner shall be solely responsible for insurance on the contents of his own Unit, including all floor and wall coverings and fixtures and improvements installed by the Owner, which are in addition to the Unit as built, and also insurance covering his personal property stored on the Property.

(3) The Association is required to secure insurance policies that will provide for the following if such provisions are obtainable:

i. A waiver of subrogation by the insurer as to any claims against the Association, the Declarant, the Owners and their respective servants, agents and guests;

ii. That the master liability policy may not be cancelled, invalidated or suspended on account of the conduct of any one or more individual Owners;

iii. That neither the master liability policy nor the master casualty policy may be cancelled, invalidated or suspended on account of the conduct of any officer or employee or the Board of Directors of the Association or for any other reason without at least 30 days prior notice in writing to the Board of Directors;

iv. That a "no other insurance" clause in the master policy shall exclude individual Owners' policies from consideration.