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Lessor may exercise the Purchase Option upon giving Lessee written notice of the <br />election (“the Notice of Exercise of Option”) within forty-five (45) days of the receipt of the <br />Resale Agreement signed by Lessee. Lessor, or any Qualified Buyer to whom Lessor may <br />assign the Purchase Option, will have sixty days from the exercise of the Purchase Option in <br />which to close the purchase of Lessee’s interest in the Leased Premises. Unless Lessor and <br />Lessee agree to extend either deadline, Lessee will be free to sell his/her interest in the Leased <br />Premises in accordance with Section 10.10 if Lessor or its assignee fails to exercise the option or <br />close the purchase within the time allowed. <br /> b. Foreclosure. At any time after the commencement of foreclosure proceedings under a <br />Permitted Mortgage, Lessor may purchase the Lessee’s Leasehold Interest for the balance due <br />under the Permitted Mortgage. <br /> <br /> 10.10 IF PURCHASE OPTION EXPIRES: If the Purchase Option expires and Lessor <br />fails to complete the purchase within the period allowed by section 10.9 above, Lessee may sell <br />his or her interest in the Leased Premises through Lessor to any Qualified Buyer, for not more <br />than the then applicable Resale Formula Price. <br /> 10.11 PURCHASE OPTION PRICE: The Purchase Option Price shall be the lesser of <br />(a) the value of the Property as determined by the Appraisal, should one have been commissioned <br />and conducted as provided in 10.7 above, or (b) the price calculated in accordance with the formula <br />described below (the Resale Formula Price). <br /> <br /> 10.12 CALCULATION OF THE RESALE FORMULA PRICE: The Resale Formula <br />Price will be equal to the Lessee’s Purchase Price, as stated below, plus the calculated appreciation <br />of the Lessee’s Investment Basis (as defined below). The appreciation amount will be the <br />percentage change in the Median Family Income (MFI), as published by the US Department of <br />Housing and Urban Development (HUD), for the metropolitan statistical area (MSA) that includes <br />Orange County, from the date of purchase to the date of the resale subject to a minimum annual <br />appreciation rate of 0.00% and a maximum annual appreciation rate of 1.00%. Appreciation for <br />partial years will be prorated to the date of the calculation. <br /> <br />The published MFI published by HUD as of the date of purchase is $___________________. <br /> <br />Lessee's Purchase Price: The parties agree that the Lessee’s Purchase Price for the leased <br />premises as of the commencement of the term of this Lease is $____________. <br /> <br />Lessee's Investment Basis: The Lessee’s Investment Basis is calculated in Exhibit J: <br />INVESTMENT BASIS. The parties agree that the Lessee’s Investment Basis in the leased <br />premises as of the commencement of the term of this Lease is $____________. <br /> <br /> 10.13 RIGHT TO PURCHASE IN LIEU OF OPTION: If the provisions of the purchase <br />option set forth in this Article 10 become unenforceable for any reason, Lessor will nevertheless <br />have a right to purchase the interest in the Leased Premises at the highest documented bona fide <br />purchase price offer made to Lessee as specified in the exhibit D: RIGHT TO PURCHASE IN <br />DocuSign Envelope ID: 1C608BEC-B713-4BE4-9E53-CD92D598627F