Common use of Inheritance Clause in Contracts

Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Home shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The person inheriting the Home (the "Inheriting Owner") shall provide the City with income information, to be verified by the City, so that the City may determine if the Inheriting Owner is an Income Eligible Household. If the Inheriting Owner fails to provide required financial information and/or documentation, he or she shall be deemed not to qualify as an Income Eligible Household. If the Inheriting Owner qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust and new documents shall be executed between the Inheriting Owner and the City and recorded against the Home. If the Inheriting Owner fails to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below and the City may exercise the City Option pursuant to Section 10 below; provided, however that the Inheriting Owner may own and occupy the Home for up to twelve (12) months prior to providing an Owner's Notice of Intent to Sell to the City pursuant to Section 7 below, and provided further that the Inheriting Owner remains in compliance with the requirements of this Agreement and the City Deed of Trust. The Inheriting Owner shall not be required to occupy the Home during this twelve (12)-month time period, but shall not rent the Home except as provided in Section 3B above. (2) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 14B below, including, without limitation, exercise of the City Purchase Option upon Default.

Inheritance. (i) If a Right Holder dies, the heirs to the Right Holder will inherit the unexercised Stock Acquisition Rights in accordance with the provisions of this Section III; provided, however, that inheritance will be limited to one time, and if the heirs to the Right Holder who will succeed to the Stock Acquisition Rights (the “Successors of Rights”) die or the Successors of Rights do not exercise the Stock Acquisition Rights within 3 months after the death of the Right Holder, such Stock Acquisition Rights can no longer be exercised and will lapse. In addition, if the Successors of Rights will be exercising the Stock Acquisition Rights, they cannot be exercised in multiple stages and only a one-time exercise of all unexercised Stock Acquisition Rights will be permitted. Inheritance will be subject to the provisions below and the conditions set forth in a contract that the Right Holder has entered into with the Company regarding the Stock Acquisition Rights. 1) All heirs to the Right Holder who have inherited the Stock Acquisition Rights shall jointly notify each of the matters listed below to the Company in writing within 3 months after the commencement of inheritance: (a) Inheritance commencement date (b) Details of the conference for division of estate regarding the Stock Acquisition Rights and the date on which agreement is reached (c) Name and address of the Successors of Rights (d) Name and address of the representative of the Successors of Rights (the “Successor Representative”) (e) Matters specified by the Company other than Items (a) through (d) above 2) When providing the notification under Item 1), a certified copy of removal from family register, certified copy of family register, agreement on division of estate, and other documents specified by the Company must be attached. 3) All of the Successors of Rights will jointly exercise the Stock Acquisition Rights through the Successor Representative. The Successor Representative will have the authority to act on behalf of all of the Successors of Rights with respect to the exercise and waiver of the Stock Acquisition Rights and all other matters regarding the Stock Acquisition Rights. 4) The Successors of Rights shall be jointly and severally liable for the performance of the obligation to pay the Exercise Price due to the exercise of the Stock Acquisition Rights and all other liabilities owed to the Company regarding the Stock Acquisition Rights. 5) In the event of any change to a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Home shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The person inheriting the Home (the "Inheriting Owner") shall provide the City with income information, to be verified by the City, so that the City may determine if the Inheriting Owner is an Income Eligible Household. If the Inheriting Owner fails to provide required financial information and/or documentation, he or she shall be deemed not to qualify as an Income Eligible Household. If the Inheriting Owner qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust and new documents shall be executed between the Inheriting Owner and the City and recorded against the Home. If the Inheriting Owner fails to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, pursuant to the procedures matter set forth in Sections 7 Item 1) (a) through 13 below and (e) above during the City may exercise period, the City Option pursuant Successors of Rights shall promptly notify the Company of the details of such change in writing. 6) Upon the Company’s request, the Successors of Rights shall, in accordance with the Company’s instructions, sell the shares in the Company that were acquired through the exercise of the Stock Acquisition Rights. (ii) The Successors of Rights will be deemed to be the Right Holders for the application of the provisions of this Section 10 belowIII excluding this Item (2); provided, however however, that the Inheriting Owner may own and occupy the Home for up to twelve (12provisions of Paragraph 7(4) months prior to providing an Owner's Notice of Intent to Sell will not apply to the City pursuant to Section 7 below, and provided further that the Inheriting Owner remains in compliance with the requirements Successors of this Agreement and the City Deed of Trust. The Inheriting Owner shall not be required to occupy the Home during this twelve (12)-month time period, but shall not rent the Home except as provided in Section 3B aboveRights. (2) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 14B below, including, without limitation, exercise of the City Purchase Option upon Default.

Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Home shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The If the person inheriting the Home (the "Inheriting Owner") is the child or stepchild of the deceased Owner (an "Inheriting Child)"), he or she shall provide the City with documentation that he or she is the child or stepchild of the deceased Owner and with income information, to be verified by the City, so that the City may determine if the Inheriting Owner Child is an Income Eligible Household. If the Inheriting Owner Child fails to provide required documentation of his or her relationship to the Owner, or financial information and/or documentationinformation, he or she shall be deemed not to qualify as an Inheriting Child and/or Income Eligible Household, as applicable. If the Inheriting Owner Child qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust and new documents shall be executed between the Inheriting Owner and the City and recorded against the Home. If the Inheriting Owner Child fails to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below and the City may exercise the City Option pursuant to Section 10 below; provided, however that the Inheriting Owner Child may own and occupy the Home for up to twelve (12) months prior to providing an Owner's Notice of Intent to Sell to the City pursuant to Section 7 below, and provided further that the Inheriting Owner Child remains in compliance with the requirements of this Agreement and the City Deed of Trust. The Inheriting Owner Child shall not be required to occupy the Home during this twelve (12)-month time period, but shall not rent the Home except as provided in Section 3B 4 above. (2) If the Inheriting Owner is not the child or stepchild of the deceased Owner, he or she shall Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below and the City may exercise the City Option pursuant to Section 10 below. In this event, the Inheriting Owner shall provide the City with an Owner's Notice of Intent to Sell within sixty (60) days of the date of death of the Owner. (3) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 14B 14 below, including, without limitation, exercise of the City Purchase Option upon Default.

Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Home Property shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death death, and the following procedures shall apply: (1a) The If the person inheriting the Home Property (the "Inheriting Owner") is the child or stepchild of the deceased Owner (an "Inheriting Child"), he or she shall provide the City with documentation that he or she is the child or stepchild of the deceased Owner together with income information, to be verified by the City, so that the City may determine if the Inheriting Owner Child is an Income Eligible Household. . (b) If the Inheriting Owner Child fails to provide required documentation of his or her relationship to the Owner or financial information and/or documentationinformation, he or she shall be deemed not to qualify as an Income Inheriting Child and/or Eligible Household, as applicable. If the Inheriting Owner Child qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust Trust, and new documents shall be executed between the Inheriting Owner Child and the City and recorded against the Home. Property. (c) If the Inheriting Owner Child fails to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home Property to an Eligible Purchaser Household at a price not exceeding the Maximum Restricted Adjusted Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below this Agreement and the City may exercise the City Option pursuant to Section 10 belowits Option; providedprovided however, however that the Inheriting Owner Child may own and occupy the Home Property for up to twelve (12) months prior to providing an Owner's Notice of Intent to Sell to the City pursuant to Section 7 below, and provided further that the Inheriting Owner Child remains in compliance with the requirements of this Agreement and the City Deed of TrustTrust.‌ (d) If the Inheriting Owner is not the child or stepchild of the deceased Owner, he or she shall Transfer the Property to an Eligible Household at a price not exceeding the Adjusted Resale Price, pursuant to the procedures set forth in this Agreement, and the City may exercise its Option. The In this event, the Inheriting Owner shall not be required provide the City with a Notice of Intent to occupy Transfer within sixty (60) days of the Home during this twelve (12)-month time period, but shall not rent date of death of the Home except as provided in Section 3B aboveOwner. (2e) Failure of an Inheriting Owner to follow the procedures and file provide the notices described in as required under this Section 6 2.3.2 shall constitute a an Event of Default under this Agreement Agreement, and the City may then exercise any of the remedies set forth in Section 14B belowthis Agreement or available to the City under law or equity, including, without limitation, exercise of the City Purchase Option upon DefaultOption.

Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the OwnerOwner (through the Trust or otherwise), the administrator of the Owner's estate or the person inheriting the Home shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The person inheriting the Home (the "Inheriting Owner") shall provide the City with income information, to be verified by the City, so that the City may determine if the Inheriting Owner is an Income Eligible Household. If the Inheriting Owner fails to provide required financial information and/or documentation, he or she shall be deemed not to qualify as an Income Eligible Household. If the Inheriting Owner qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust and new documents shall be executed between the Inheriting Owner and the City and recorded against the Home. If the Inheriting Owner fails to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below and the City may exercise the City Option pursuant to Section 10 below; provided, however that the Inheriting Owner may own and occupy the Home for up to twelve (12) months prior to providing an Owner's Notice of Intent to Sell to the City pursuant to Section 7 below, and provided further that the Inheriting Owner remains in compliance with the requirements of this Agreement and the City Deed of Trust. The Inheriting Owner shall not be required to occupy the Home during this twelve (12)-month time period, period but shall not rent the Home except as provided in Section 3B above. (2) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 14B below, including, without limitation, exercise of the City Purchase Option upon Default.

Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Home Residence shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The . If the person inheriting the Home Residence (the "Inheriting Owner") is a qualified inheritor under the City’s definition of eligible parties not subject to Transfer (an "Inheriting Party"), that person shall provide the City with income informationdocumentation of his or her qualifications as an Inheriting Party, to be verified by the City, so that the City may determine if the Inheriting Owner is an Income Eligible Household. If the Inheriting Owner Party fails to provide required financial information and/or documentationdocumentation demonstrating the his or her relationship to the Owner within 60 days of the date of the Owner’s death, he or she the party shall be deemed not to qualify as an Income Eligible HouseholdInheriting Party. If the The Inheriting Owner qualifies as an Income Eligible Household, he or she Party shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust and new documents shall be executed execute an assumption agreement containing the terms of the Agreement, City Note and Deed of Trust between the Inheriting Owner and the City and recorded against the HomeResidence. 2. If the Inheriting Owner fails to qualify as an Income Eligible Householdis not a qualified Inheriting Party, he or she shall be required to Transfer the Home Residence to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Affordable Purchase Price, pursuant to the procedures set forth in Sections 7 8 through 13 below and the City may exercise the City Option pursuant to Section 10 14 below; provided. Prior to initiating a Transfer pursuant to this section, however that the Inheriting Owner may own and occupy shall provide the Home for up to twelve (12) months prior to providing City with an Owner's Notice of Intent to Sell to within sixty (60) days of the City pursuant to Section 7 below, and provided further that date of death of the Inheriting Owner remains in compliance with the requirements of this Agreement and the City Deed of Trust. The Inheriting Owner shall not be required to occupy the Home during this twelve (12)-month time period, but shall not rent the Home except as provided in Section 3B aboveOwner. (2) 3. Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 7 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 14B 17 below, including, without limitation, exercise of the City Purchase Option upon Default.

Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Home shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The person inheriting the Home (the "Inheriting Owner") shall provide the City with income information, to be verified by the City, so that the City may determine if the Inheriting Owner is an Income Eligible Household. If the Inheriting Owner fails to provide required financial information and/or documentation, he or she shall be deemed not to qualify as an Income Eligible Household. If the Inheriting Owner qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Note, and the City Deed of Trust and new documents shall be executed between the Inheriting Owner and the City and recorded against the Home. If the Inheriting Owner fails to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below and the City may exercise the City Option pursuant to Section 10 below; provided, however that the Inheriting Owner may own and occupy the Home for up to twelve (12) months prior to providing an Owner's Notice of Intent to Sell to the City pursuant to Section 7 below, and provided further that the Inheriting Owner remains in compliance with the requirements of this Agreement and the City Deed of Trust. The Inheriting Owner shall not be required to occupy the Home during this twelve (12)-month time period, but shall not rent the Home except as provided in Section 3B above. (2) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 14B 14 below, including, without limitation, exercise of the City Purchase Option upon Default.

Inheritance. In the event a Transfer transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate estate, the trustee of Owner's trust or the person inheriting the Home shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The If the person inheriting the Home (the "is an Inheriting Owner") shall provide the City with income information, to be verified by the City, so that the City may determine if the Inheriting Owner is an Income Eligible Household. If the Inheriting Owner fails to provide required financial information and/or documentation, he or she shall be deemed not to qualify as an Income Eligible Household. If the Inheriting Owner qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement, the City Promissory Note and the Deed of Trust. In order to evidence the assumption of the Inheriting Owner's obligations under the Promissory Note, and the City Deed of Trust and the Agreement, the City may require the transferee to execute a new documents shall be executed note and a new deed of trust, and a new Property Restriction Agreement and Option to Purchase, and/or an assumption agreement. The new resale restrictions agreement and option to purchase between the Inheriting Owner and City shall have a thirty (30) year term that shall commence upon the recordation of such new agreement. Notwithstanding the foregoing, nothing herein shall be deemed to obligate City or any other lender to continue to offer a Below Market Financing or Price Discount to such Inheriting Owner, if such Inheriting Owner would not otherwise qualify for such loan. (2) If the person inheriting the Home is not an Inheriting Owner ("Non-Relative Inheriting Owner"), the City and recorded against shall have the Home. If the Inheriting Owner fails right to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below and the City may exercise the City its Option pursuant to Section 10 below; provided, however that the Inheriting Owner may own and occupy the Home for up to twelve (12) months prior to providing an Owner's Notice of Intent to Sell to the City pursuant to Section 7 below, and provided further that the Inheriting Owner remains in compliance with the requirements of this Agreement and the City Deed of Trust7. The Non- Relative Inheriting Owner shall not be required cooperate with the City exercising its Option to occupy Purchase and completing the Home during this twelve (12)-month time period, but shall not rent process as outlined in the Home except as provided Sales Process described in Section 3B abovethe following Sections 8 and 9. (23) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 14B 14 below, including, without limitation, exercise of the City Purchase Option upon DefaultDefault set forth in Section 15.