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extent such approval is required pursuant to Section 10.1); (iii) subject to the rights of a Leasehold Mortgagee to hold and disburse such funds, Tenant shall, if the reasonably estimated cost of repair and restoration shall be or exceed One Million Dollars ($1,000,000) and if required by Landlord, deposit into an interest -bearing escrow account sufficient funds to finance such repair and restoration and such funds shall be disbursed from the escrow to Tenant in such progress payments as Landlord may reasonably approve over the course of reconstruction; and (iv) such repair and restoration shall be commenced in good faith and with all reasonable diligence within a reasonable period of time following the casualty and shall thereafter be completed with due diligence. Any funds so deposited in escrow shall be held in an interest -bearing account and any interest so earned shall be deemed to be part of the funds for reconstruction. Any such funds which are in excess of the costs of repair and restoration shall be paid from the escrow to Tenant within a reasonable period of time following lien -free completion of reconstruction (including lien -free completion of all punch - list items). Section 11.3 Termination won Uninsured Casualty Subject to the provisions of Article XXIV of this Lease, if the Premises or the Improvements, or any part thereof, are damaged or destroyed by any casualty or occurrence not required to be insured against under this Lease and not otherwise insured against, and Tenant elects not to repair or restore said damage or destruction as provided in Section 11.2, this Lease shall terminate upon Landlord's receipt of written notice of termination from Tenant given no later than one hundred eighty (180) days following the occurrence of such LEASE BETWEEN CITY OF SAN LEANDRO AND SAN FRANCISCO BAY CONFERENCE RESORT PAGE 43 2574001\313983.8