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Contingent EqUaRy Participation Amount. If are event of acceleration occurs as described in Section 6, and the Maker is not selling the Property pursuant to Section 4 of the Agreement, the Maker shall pay to the Holder} the whole of the Homebuyer Assistance Loan Amount and the "Contingent Equity Participation mount," as hereinafter defined. Tf the Igo m b u firer is l l i ng the Property to an Eligible Person and Family at an Affordable Housing Cost with the Agency's prior written approval, in accordance wi tai the requirements of Section hereunder and Section 4 of the Agreement} then no Contingent Equity Participation r' cunt shall be required hereunder in connection with such sale. (a) of Contingent Equity Participation Amount. The "Contingent Equity Participation Amount" means are amount equal to a percentage s h are of the appreciation of the Property deternai n d by multiplying a variable percentage factor (the "Variable App 1 i ab 1 F a tor" by the difference bet een the Sales Price and the Purchase Price (as those terms are hereinafter defined). (b) Applicable Factor Calculation. The Variable Applicable Factor shall be calculated by dividing the Agency's total initial equity contribution (the "Agency Contribution") by the sum of the Agency ontrioudon plus the Hornebuyer's contribution (the " Home bu er Contribution"). In other words, the Agency Contribution shall be the numerator, and the sum of the Agency Contribution plus the Homebuyer Contribution sb a l l be the denominator of a fraction that equals a percentage that is the Variable Applicable Factor (subject to Section 7i• Variable Applicable Factor Agency Contribution Agency Contribution + Homebuyer Contribution For example, if the Agency Contribution equals $30,000 and the Homebuyer Contribution equals $250,000, the Variable Applicable Factor would equal 10.7% ($30,000 divided by the sum of $30,000 plus $250x000). 10.7% (Variable Applicable Factor ) _ �4�� er�ey ontribution) $30,000 (Agency Contribution) + $250,000 Ho mebu yer Contribution) = ($280,000) (i) The '.'Agency o ntrib ution" is the sum of the following arm s nts contributed by the Agency to the purchase pnc a of the Property i principal amount of the Homebu er Assistance Loan, i.e., the Affordable Housing Cost Subsidy (as hereinafter defined); and (ii) the principal amounts of any other to arcs or subs id ics provided by the Agency. (ii) The "Homebuyer Contribution" is the sum of the following amounts contributed by the Homebuyer to the purchase price of the Property: i the principal amount of the First Lien loan; (ii) the Homeb u er' s cash down payment plus the Horn bu firer' s portion of closing costs; and (iii) the original principal amount of to arcs or other sub id ie s EXHIBIT B-3 TO ATTACHMENT NO. 11 Promissory Dote DO 1 40G67 3v 14/200272 -ODO1