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201106�07 Members attributable to such sale, (ii) the principal amount of outstanding indebtedness secured by the Project (other than indebtedness incurred within the five (5) year period ending on the date of the sale to the Grantee) and (iii) provisions as provided in Operating Agreement. It is expressly agreed, however, that (a) the Owner, in the event the Grantee does not exercise its right of first refusal described above, for a period not to exceed three (3) months from the date the Grantee gives notice to Owner that it will not exercise such right of first refusal, or (b) the Grantee upon exercising its right of first refusal described above, shall offer to sell each Qualified Unit to any non-defaulting Qualified Tenant then in occupancy for an amount no greater than the amount determined in accordance with Section 42(h)(6)(F) of the Code. In the event neither the Grantee nor Qualified Tenant elects to exercise its respective rights outlined in this Section 7 upon the expiration of the Qualified Project Period, the Authority shall have the option of purchasing any Qualified Unit for an amount determined in accordance with Section 42(h)(6)(F) of the Code. Upon the Grantee exercising its right of first refusal described above, with respect to any Qualified Unit not purchased by a Qualified Tenant, the Grantee shall continue the achievement of the Crown Program goals for each such Qualified Unit for a period of 15 additional years and, at the expiration of such additional 15 years, offer to sell each Qualified Unit to the Qualified Tenant then in occupancy. A Qualified Unit shall be sold to a Qualified Tenant for an amount equal to the amount determined in accordance with Section 42(i)(7) of the Code, as described above under the right of first refusal. If at the time a Qualified Unit is sold to a Qualified Tenant (the "Initial Sale") the fair market value at the time the Initial Sale exceeds the sale price to the Qualified Tenant (such difference, the "Crown Equity"), the deed transferring title to such unit shall contain a restriction limiting the proportion of the Crown Equity allocated to such Qualified Tenant in the event the Qualified Tenant resells the Quali�ed Unit to a third party or entity before such Qualified Tenant has occupied the Qualified Unit continuously for ten (10) years. The amount of Crown Equity allocated to a Qualified Tenant at the resale by such Qualified Tenant of a Quali�ed Unit (the "Subsequent Sale") shall be determined in accordance with the following formula (to be set forth in any deed at the Initial Sale): (Fair Market Value of Qualified Unit at time of Initial Sale - Purchase price of Qualified Unit at time of Initial Sale) X(Total number of years of occupancy by Qualif'ied Tenant/10) = Amount of Crown Equity allocated to Qualified Tenant at time of Subsequent Sale. The remaining Crown Equity after allocation to the Qualified Tenant in accordance with the above formula shall be funded to the Authority, which shall apply such funds toward home ownership programs in Grand Island, Nebraska. The Qualified Tenant, however, shall receive any amounts in excess of the Crown Equity attributable to the appreciation in the value of the Qualified Unit from the time of the Initial Sale to the time of the Subsequent Sale (the "Appreciation Equity"). 4832-2986-0106.1 12