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repair and restore the Leased Premises and thereafter diligently pursue such restoration to completion. 18.2 Partial Destruction. If the Facility should be partially damaged by fire or other casualty or a force majeure event, then Lessee shall, subject to the availability of insurance proceeds (it being understood and acknowledged that Lessee shall have no obligation to repair or restore any portion of the Leased Premises if insurance proceeds are not available to fully restore the same), restore the buildings, improvements and Personal Property in a good and workmanlike manner to a condition as good as or better than the condition in which the buildings, improvements and Personal Property existed prior to their damage or destruction. For purposes of this Lease, the term "partially damaged" means (a) damage to the extent of one third or less of the value of the buildings, improvements and Personal Property at the Leased Premises or (b) damage to the extent that no more than nine holes on the golf course at the Leased Premises are rendered unplayable. If the insurance proceeds made available to Lessee are not sufficient to fully restore the Leased Premises, then Lessee may terminate this Lease upon written notice to Lessor in which event the parties shall have no further liability hereunder. In addition, notwithstanding anything in this Section 18.2 to the contrary, if, as a result of the partial destruction of the Leased Premises, Lessee is unable to make full and productive economic use of the Leased Premises and, in Lessee's reasonable determination, the full and complete restoration of the Leased Premises will take in excess of one hundred eighty (180) days, then Lessee may, upon written notice to Lessor within sixty (60) days after the partial destruction occurs, terminate this Lease, in which event the parties shall have no further obligations hereunder. 18.3 Rental Abatement and Term Extension. If Lessee is unable to make full and productive economic use of the Leased Premises during repair, reconstruction or replacement as provided for in this Section, Lessee's rental obligations under Article 6 shall be abated until such time as Lessee is again fully able to do so. The Lease term shall also be extended for a period equivalent to the length of time required to restore the Leased Premises and make them available to Lessee for Lessee's use pursuant to Article 2 of this Lease. 18.4 Application of Insurance Proceeds Upon Termination. If, after the partial or total destruction of the Leased Premises, this Lease is terminated pursuant to the provisions of this Article 18, then all insurance proceeds made available on account of such destruction shall first be paid to Lessee to reimburse Lessee for the value of any and all improvements made to the Leased Premises by Lessee prior to such destruction until such time as Lessee has received full reimbursement for all such LEASE AGREEMENT BETWEEN CITY OF SAN LEANDRO AND AMERICAN GOLF PAGE 23 11/13/97 FINAL j:\WPD\CSL\13o\OIWGREaCOLFCOURWGREE\LFASE.CLN