ARTICLE 14.
CAPITAL RESERVES.

Section 14.1 Reserve Deposits. The Stadium Authority will fund a capital reserve maintained by the Stadium Authority (the "Stadium Capital Expenditure Reserve") with the following amounts:

1. (An annual deposit to the Stadium Capital Expenditure Reserve in the amount of One Million Five Hundred Thousand Dollars ($1,500,000), escalating three percent (3%) per year, beginning in the second year of operation of the Stadium, and continuing each year thereafter for the term of the Stadium Lease, plus any additional amounts agreed by 49ers Stadium Company;
2. In any year in which Stadium Authority has Excess Revenues, the Stadium Authority will make a payment to the Stadium Capital Expenditure Reserve in an amount up to One Million Dollars ($1,000,000) in accordance with the priorities for payment set forth in clause (b) of Article 15 below; and
3. Each year that a Second Team plays its home games in the Stadium, other than in connection with temporary Second Team Occupancy, the Stadium Authority will fund the applicable Second Team Capital Reserve Deposit as an additional Stadium Operating Expense. The amount of the "Second Team Capital Reserve Deposit" for any year shall equal One Million Dollars ($1,000,000) in the year the Second Team plays its first home game in the Stadium, and will escalate at a rate of three percent (3%) per year thereafter.

Section 14.2 Use Of Reserve. The Stadium Capital Expenditure Reserve will be used by the Stadium Authority for replacements and capital improvements to the Stadium as provided in the annual Capital Expenditures Plan. Any remaining amounts of the Stadium Capital Expenditure Reserve upon termination of the Stadium Lease will be paid to 49ers Stadium Company to fund any required demolition of the Stadium and as partial reimbursement for capital costs incurred by 49ers Stadium Company in the construction of the Stadium.