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BK: 3179 PG: 23 <br />month an amount equal to the net rental profit for such month, such profit being the excess of the <br />monthly rental over obligations under the Habitat Note and for current property taxes and insurance. <br />6. Distribution of Proceeds of Sale or Transfer. Proceeds of sale or Transfer of the <br />Property, other than upon IRCHFH's exercise of its option upon Contingent Event, shall be <br />distributed as follows: <br />a. First, to payment of costs of sale, including broker's fees and seller's share of <br />closing costs; <br />b. Second, to discharge any balance owing on the Habitat first mortgage; <br />Third, to discharge any balance owing on a HABITAT SECOND mortgage; <br />d. Fourth, to discharge any balance owing on a Habitat second mortgage; <br />e. Fifth, to discharge IRCHFH's Interest under this Shared Appreciation <br />Agreement; <br />f. Sixth, to discharge any balance owing on any other mortgage, deed in lieu, or <br />lien on the Property and any amount owing to IRCHFH as damages for default under <br />this Agreement; and <br />g. Seventh, to Homeowner. <br />Example. As an example, assume Homeowner purchased the home for $138,000.00 <br />and the initial fair market value based on a current appraisal is also $138,000.00. In ten <br />years, Homeowner wishes to sell the Property either to IRCHFH, based on the First Right of <br />Transfer, or to an uninterested party. Assuming the new sales price would now be <br />$250,000.00, and a new Fair Market Value based on a current appraisal, is established at <br />$250,000.00, at the time of closing of the Property, the outstanding balance on the first <br />mortgage to Habitat, the balance on the HABITAT SECOND mortgage, the balance on the <br />second Habitat mortgage and any other outstanding liens would be deducted and <br />Homeowner would receive the balance of their equity in the Property, including, but not <br />limited to, a percentage of the Appreciation Amount based on this Agreement and equity <br />payments made when paying down the Habitat first mortgage. <br />Appreciation Amount <br />$ 250,000 FMV at Sale <br />- 138,000 Initial FMV <br />$ 112,000 Appreciation Amount <br />Homeowner's Equity Interest <br />$ 20,040 Total Principal Payments on Habitat Note <br />+ 56,000 50% of Appreciation Amount <br />$ 76,040 Total Homeowner's Equity <br />Page 5 of 9 <br />