ARTICLE 16.
SECOND TEAM.

Section 16.1 Second Team. 49ers Stadium Company will have the right to enter into a sublease with a second NFL team ("Second Team"), on terms and conditions consistent with and subject to the Stadium Lease to allow the Second Team to play its home games in the Stadium, subject to the following conditions:

1. Repayment of Upfront Investment. Prior to the date that the Second Team plays its first home game in the Stadium, the Agency will receive an amount equal to the Agency Upfront Investment, which, as provided in Section 7.4 above, is estimated under current economic conditions to be approximately Twenty-Eight Million Dollars ($28,000,000).
2. Repayment of Advance. 49ers Stadium Company will pay to the City or Agency prior to the date that the Second Team plays its first home game in the Stadium an amount equal to all the tax increment previously paid to 49ers Stadium Company as payment on the principal amount of the 49ers Agency Advance.
3. Forgiveness of 49ers Agency Advance. From and after the date the Second Team plays its first home game in the Stadium, 49ers Stadium Company will have no further right to receive tax increment and will forgive all principal and interest of any outstanding 49ers Agency Advance.
4. Additional Fixed Ground Rent. Commencing in the first year the Second Team plays its home games at the Stadium, the Stadium Authority will pay to the City, as additional Fixed Ground Rent ("Second Team Fixed Ground Rent"), One Million Dollars ($1,000,000) per year. Beginning in the eleventh year of Second Team occupancy, the Second Team Fixed Ground Rent will equal One Million One Hundred Thousand Dollars ($1,100,000) per year, and such amount will, provided the Second Team continues to play its home games at the Stadium, increase One Hundred Thousand Dollars ($100,000) every five (5) years thereafter during the initial term of the Stadium Lease. For each extension of the Ground Lease, the Second Team Fixed Ground Rent payment will increase by Eighty Thousand Dollars ($80,000) for the term of the extension. As Second Team Fixed Ground Rent will be included in Fixed Ground Rent, such amount will be taken into account in calculating Reimbursable Expenses as provided in Section 12.1(i) above, and a portion thereof will be credited against Performance-Based Rent as provided in Section 4.3(b)(i) above.
5. Reimbursement of Developer Fees. 49ers Stadium Company will reimburse the Agency for the share of development fees paid by the Agency to the City's enterprise funds as of a result of the construction of the Stadium as provided in Section 6.4 above, estimated to be approximately One Million Seven Hundred Thousand Dollars ($1,700,000).
6. Capital Costs. 49ers Stadium Company will be responsible for all additional capital costs and additional Reimbursable Expenses required to accommodate a Second Team, except that the Capital Expenditure Reserve may be used to the extent consistent with the Capital Expenditure Plan. There would be no additional investment required by the City or Agency.
7. Additional Capital Expenditure Reserve Deposit. As provided in Section 14.1(c) above, each year that a Second Team plays its home games in the Stadium, the Stadium Authority will fund, as an additional Stadium Operating Expense, the Second Team Capital Reserve Deposit in the initial amount of One Million Dollars ($1,000,000), escalated at the rate of three percent (3%) per year thereafter.

Section 16.2 Temporary Second Team Occupancy. In the event 49ers Stadium Company enters into a sublease to allow a Second Team to play its home games at the Stadium for a temporary period not to exceed two NFL seasons (plus up to one (1) additional NFL season as may be required solely to accommodate delays in the construction or reconstruction of the Second Team's stadium), then 49ers Stadium Company will not be required to make the payments or reimbursements described in Sections 16.1(a), 16.1(b) or 16.1(e) above, nor shall the forgiveness of the 49ers Agency Advance or the Additional Capital Expenditure Reserve Deposit be required. However, if a Second Team plays more than two NFL seasons at the Stadium, then, subject to the foregoing exception, all the provisions of Section 16.1 will apply.

Section 16.3 Sublease Subject to Stadium Lease. Any sublease to a Second Team shall be subject to all of the terms of the Stadium Lease. Although the terms of any sublease to a Second Team are not subject to approval of the Stadium Authority, both 49ers Stadium Company and the Second Team shall certify to the Stadium Authority that such sublease is subject to all of the terms of the Stadium Company Lease, and the Stadium Authority may retain an independent third party to review the sublease to confirm such certification.