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INSTALLMENT SALE AGREEMENT THIS INSTALLMENT SALE AGREEMENT, is made and entered into as of July 1, 2016 (as defined in Section 1.01, the"Agreement"),by and between City of Redlands, a municipal corporation duly organized and validly existing under the laws of the State of California, as purchaser(the"Purchaser"), and the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK("IBank"), duly organized and validly existing pursuant to the Bergeson-Peace Infrastructure and Economic Development Bank Act, constituting Division 1 of Title 6.7 of the California Government Code (commencing at section 63000 thereof) as now in effect and as it may from time to time hereafter be amended(the"Act"), as Seller. IBank and the Purchaser are hereinafter at times collectively referred to as the "Parries" and individually as a"Parry." WITNESSETH: WHEREAS, on or about March 15, 2016, the Purchaser adopted Resolution No. 7611, in substantially the same form as set forth in Exhibit A attached hereto, authorizing the purchase from IBank of a Facility, as defined herein, as evidenced by this Agreement; WHEREAS, on September 18, 2012, TKE Engineering, Inc. provided a Pavement Deterioration Analysis Report to the Purchaser which found that solid waste vehicles account for the highest vehicle loading factor on city streets and, as such, are a major contributor to street deterioration estimated at an annual, citywide cost of$3.6 million; WHEREAS,Purchaser's staff issued Proposition 218 notices necessary for the rates and charges increases required to support the PARIS Project, as defined herein, which notices attributed more than 38% of damage done to city streets each year to solid waste vehicles; WHEREAS, not having received written protests against the proposed increases from a majority of parcels subject to the revised schedule of rates and charges, the Purchaser's City Council adopted the revised schedule of rates and charges pursuant to the terms of Ordinance No. 2787 effective February 1,2013; WHEREAS, the Purchaser sought financing for the aforementioned improvements from Mank and lBank wishes to provide such financing; WHEREAS, IBank has issued, or intends to issue,tax-exempt bonds ("Proceeds Bonds" as defined in Section 1.01), the proceeds of which may be used to provide all or a portion of the Facility Funds (as defined in Section 1.01); WHEREAS, Mank may pledge its rights, including the rights to receive payments, under this Agreement to secure bonds that it has issued, or intends to issue, for the benefit of its programs("Secured Bonds" as defined in Section 1.01), and the Purchaser acknowledges that the issuance or existence of both the Proceeds Bonds and the Secured Bonds impacts its rights and obligations as described herein; and 1