Section 5.1 Term. The Stadium Lease and the Team Sublease will be for an initial term of forty (40) years, with five (5) separately exercisable options, each for an additional term of four (4) years. The same terms and conditions of the Stadium Lease will apply during each option term. 49ers Stadium Company may only exercise an option to extend the term of the Stadium Lease if the Team Sublease is concurrently extended for the same term as the option term and the Non-Relocation Agreement remains in full force and effect.
Section 5.2 NFL Events. 49ers Stadium Company will have the exclusive right to host professional football games in the Stadium ("NFL Games"), and the Stadium Authority will not allow other professional football games in the Stadium without the prior written permission of 49ers Stadium Company. Each year during the term of the Team Sublease, the Team will play its home games in the Stadium, as provided in Section 3.2(c) above. Use of the Stadium for NFL Games will include time reasonably necessary for practice or warm-ups by the home and visiting teams, the installation of equipment, including advertising and media equipment, and same day concerts and other special events in conjunction with the games. The Stadium will be available and ready for the playing of each NFL Game a minimum of forty-eight (48) hours before the game. In addition to the use of the Stadium for NFL Games, 49ers Stadium Company and the Team will be entitled to use the Stadium in connection with a reasonable number of community relations, promotional and corporate partner private events (together with NFL Games, "NFL Events"), provided that 49ers Stadium Company and the Team will coordinate the scheduling of NFL Events (other than NFL Games) with the Stadium Authority to avoid conflict with Non- NFL Events and Civic Events. In all events, however, the Stadium Authority will recognize that, during the NFL pre-season, regular season and post-season, the 49ers Stadium Company, the Team, any Second Team and all NFL Events will have scheduling priority over all Civic Events and Non-NFL Events in the Stadium as set forth in Article 13.
Section 5.3 Facility Rent to Stadium Authority; Net Operating Expenses. Following completion of the Stadium, 49ers Stadium Company will pay to the Stadium Authority, as rent for the Stadium: (i) an amount equal to Five Million Dollars ($5,000,000) per year ("Facility Rents"); plus (ii) all Net Operating Expenses of the Stadium, as more particularly described in Article 9 below. 49ers Stadium Company will be entitled to a credit against its obligation to reimburse Net Operating Expenses under the Stadium Lease for any new or amended local taxes imposed by the City and paid or collected by 49ers Stadium Company, the Team and/or a Second Team which disproportionately impact the Team, any Second Team or NFL Events.
Section 5.4 Demolition. At the end of the term of the Stadium Lease, 49ers Stadium Company, at the option of the Stadium Authority, will be operationally and financially responsible for the demolition of the Stadium. If the Stadium Authority elects not to require that the Stadium be demolished at the end of the term of the Ground Lease, the City will become the owner of the Stadium without payment to the Stadium Authority, 49ers Stadium Company or any other entity, except as provided in Section 14.2.
