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procedures set forth above for LESSEE's initial construction (including, but not limited to, LESSOR's <br />review and approval of plans); and (3) any and all insurance proceeds attributable to the replacement <br />of the improvements, but not LESSEE's personal property, shall be deposited in LESSOR and <br />LESSEE's joint names in an escrow account at a bank or other financial institution designated by <br />LESSOR (or, if required by a leasehold mortgage approved pursuant to Article 7 above, to the <br />leasehold mortgagee) to be used by LESSEE for the repair, reconstruction, or restoration of the <br />improvements. Such proceeds shall be disbursed periodically upon certification of the architect or <br />engineer having supervision of the work that such amounts are the amounts paid or payable for the <br />repair, reconstruction, or restoration. LESSEE shall obtain, and make available to LESSOR, <br />receipted bills, and upon completion of said work, full and final waivers of lien. In the event the <br />insurance company monitors the repair, reconstruction, or restoration of the improvements, the parties <br />acknowledge that the proceeds may not be disbursed in advance of invoices from contractors and <br />therefore not paid in advance in order to escrow the proceeds. <br />In the event the proceeds are not escrowed in advance of payments due for the repair, <br />reconstruction, or restoration of the improvements, the proceeds shall be jointly payable to LESSOR <br />and LESSEE. If the insurance proceeds are insufficient to pay the cost of Restoration, LESSEE must <br />pay the shortfall. If the proceeds exceed the cost of Restoration, LESSEE will be entitled to the <br />surplus, unless LESSEE is in default under this LEASE. In the latter event, the surplus must be <br />applied to the default; the remainder, if any, will be paid to LESSEE. <br />If LESSEE does so elect to terminate the LEASE, then any and all insurance proceeds received <br />and receivable as a result of on account of casualty damage shall be payable, first, to paying off the <br />leasehold mortgage (but only to the extent the leasehold mortgage secures amounts actually spent by <br />LESSEE on improvements to the Premises, plus interest), and second, split between LESSOR and <br />Page 24 of 41 <br />117 <br />