Agmt15 Habitat for Humannity Greater San Francisco

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f. Option. Pursuant to the Option Agreement, Grantee granted to Contractor, or to the City if Contractor chooses not to exercise its rights, the right and option to repurchase the Property upon any proposed Transfer of the Property for the Eligible Sales Price (as defined in Section (g) below) on the terms and in the manner set forth in the Option Agreement (the "Option"). Nothing in this Addendum shall constitute a waiver of any due on sale clause or other provisions contained in a deed of tnast on the Property, in favor of, or which was authorized by, Contractor or the City. g. Eliqible Sales Price. The "Eligible Sales Price"for the repurchase of the Property by Contractor or the City shall be: (i) the original purchase price of the Property when acquired by the Grantee from Contractor (the "Purchase Price"), adjusted by the lesser of: (a) the percentage change in the area median income for San Mateo County as determined by HUD, or in the event that this statistical index is no longer published any other appropriate index as determined by Contractor, measured from the date of recordation of the Grant Deed until the date of the notice of exercise of the Option by Contractor or the City (the "Adjustment Period") or (b) three percent (3%), compounded annually during the Adjustment Period; plus (ii) the value of the Qualifying Improvements {as defined in Section (h) below), if any; less (iii) the reasonable cost to repair any damage to the Property or cure any outstanding impounds, liens, fines, or delinquent payments, as determined by Contractor or the City, as applicable. h. Qualifvinq Improvements. A "Qualifying Improvement" shall be any capital improvement, as opposed to repairs and maintenance, made to the Property by Grantee, which satisfies all the criteria set forth below. The value of the Qualifying Improvements shall be limited to a total of ten percent(10%) of the original Purchase Price. The value of the Qualifying Improvements shall be the sum equal to the original cost of materials and labor prorated over the remaining useful life of the improvements. It shall be the obligation of Grantee to establish by sufficient evidence that any improvements are a Qualifying Improvement and the value thereof. Contractor shall have the right to determine the value of any Qualifying Improvement in its sole and absolute discretion. Further, in establishing any value to a Qualifying Improvement, Contractor shall have the right to consider any damage to capital improvements in the Property and may offset the Eligible Sales Price by the reasonable cost of repair on such damage. In order to be deemed a Qualifying Improvement, each improvement must satisfy the following qualifying criteria: (a) The cost of the improvement must exceed one percent (1%) of the original Purchase Price; (b) The improvements must have a remaining expected useful life of at least five (5) years beyond the completion of the proposed transfer; REV:02-05-15 VR Page 29 of 33 ATTY/AGR.2015.025/Habitat for Humanity GSF Jefferson Site Acquisition