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7.8.3 By Mutual Consent. If both Employee and City agree in writing the real property may be sold. 7.9 Distribution of Equity Upon Sale. Upon the sale of the primary residence (or a replacement home as described below) the proceeds of the sale shall be divided between Employee and City as follows: 7.9.1 Deductions. The costs of sale including, but not limited to escrow fees, real estate brokers' fees, and related other expenses shall first be deducted from the gross sales price. The remainder shall be called the net sales price. 7.9.2 Equity Shares. The respective equity shares shall be calculated by determining the percentage equity share of Employee and the equity share of City and multiplying such percentage by the net sales price. 7.9.3 Employee's Net Equity Share. From the product of multiplying Employee's equity share by the net sales price comes Employee's equity share. From Employee's equity share should be subtracted the outstanding balance of the Loan Amount, together with any accrued, but unpaid, interest, which amount should be paid to City. 7.9.4 City's Net Equity Share. City shall be paid any remaining money after the deduction of Employee's net equity share described in Paragraph 7.9.3 above. 7.9.5 Example. Assume, as in the previous example, the home was purchased for $800,000, consisting of Employee's Equity Share of $600,000 and City's Equity Share of $200,000. Costs of sale are $125,000. The out- standing balance of the loan at the time of the sale is $175,000. The net sales price of $1.075,000 would first be calculated by deducting the costs of sale of $125,000 from the gross sales price of $1,200,000. The net sales price would then be multiplied by 75%, resulting in a calculation of Employee's equity share of $806,250. The outstanding balance of the Loan ($175,000), together with any outstanding interest accrued, is subtracted from Employee's equity share and paid to City. Employee would receive $631,250, from which Employee would pay any outstanding mortgage to a lending institution. The net sales price would be multiplied by 25%, resulting in a calculation of City's equity share of $268,750. This amount would be paid to City. 7.10 Purchase of Primary Residence. Nothing in this Amendment or the Agreement shall be read to prevent Employee from selling the real F:Atty/Ag r/Amen d 3.Yam arnoto 040403 5