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paid over from the escrow to Tenant within a reasonable period of time following lien -free <br />completion of reconstruction (including lien -free completion of all punch -list items), and shall <br />be Tenant's sole and exclusive property. To the extent the insurance proceeds are <br />insufficient to cover the cost of such repair and restoration, Tenant shall make up the <br />deficiency out of Tenant's own funds. Such repair and restoration shall be commenced in <br />good faith and with all reasonable diligence within a reasonable period of time following the <br />casualty and shall be completed with due diligence. <br />Section 11.2 Tenant Repair of Uninsured Casualty <br />If the Premises or the Improvements, or any part thereof, are damaged or destroyed <br />by any casualty or occurrence not required to be insured against under this Lease and not <br />otherwise insured against, and the cost of repairing or restoring such uninsured damage is <br />One Million Dollars ($1,000,000) or more, Tenant shall have the right, but not the <br />obligation, to cause the same to be repaired and restored, at Tenant's sole cost and expense, <br />provided that: (i) Tenant shall notify Landlord in writing of its election to repair and restore <br />said damage or destruction and shall deliver to Landlord satisfactory evidence that Tenant has <br />sufficient funds to fully repair and restore the same as herein required within one hundred <br />eighty (180) days following the occurrence of said damage or destruction; (ii) Tenant shall <br />cause the Premises and the Improvements or any affected portion thereof to be fully repaired <br />and restored to the condition existing immediately prior to such casualty or occurrence <br />(subject to changes necessary to comply with then existing Applicable Laws and any changes <br />in design approved by Landlord, which approval shall not be unreasonably withheld to the <br />LEASE BETWEEN CITY OF SAN LEANDRO <br />AND SAN FRANCISCO BAY CONFERENCE RESORT PAGE 42 <br />2574001\313983.8 <br />