Reso 1998-059 (Missing 1996-056 through 1996-058)

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fund operations or other routine maintenance and repair costs necessary to meet the Standard of Maintenance. Funds held in the Furnishings Reserve Account may be expended by Tenant for such purposes without other Landlord approval, provided that Tenant shall provide Landlord not less frequently than quarterly with a detailed accounting of all deposits, expenditures and balances of the Furnishings Reserve Account. Upon termination of the Lease, all funds remaining in the Furnishings Reserve Account shall be remitted to Landlord. Nothing in this Section shall be construed as a limitation on Tenant's obligations under other provisions of this Lease. Section 7.3 Capital Reserve Account In addition to the Furnishings Reserve Account, Tenant shall at all times during the Term maintain a segregated reserve account jointly in the names of Landlord and Tenant in a sinking fund with a banking institution acceptable to Landlord (the "Capital Reserve Account"). Within sixty (60) days after the end of each calendar year in which the Facility is open for business, Tenant shall deposit into the Capital Reserve Account an amount equal to one percent (1%) of the Gross Revenues for the immediately preceding calendar year; provided that at no time shall Tenant be obligated to maintain more than Five Hundred Thousand Dollars ($500,000) (including accrued interest) in the Capital Reserve Account. Funds in the Capital Reserve Account shall be used only for major building repairs and capital improvements to the Facility, and are not to be used to fund operations or routine maintenance and repair costs necessary to meet the Standard of Maintenance or to fund any items for which the Furnishings Reserve Account is designated. Funds held in the Capital Reserve Account shall be expended only in LEASE BETWEEN CITY OF SAN LEANDRO AND SAN FRANCISCO BAY CONFERENCE RESORT 002574.0001\409817.4 PAGE 39