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REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") dated January 16, 2024 for reference purposes only, is made by and between THE CITY OF REDLANDS, a California municipal corporation and general law city ("Redlands"), and PROPERTY ONE, LLC, a California limited liability company ("Property One") who agree as follows. 1. Background A. Redlands presently leases that certain building located at 300 E. State Street, . Redlands, California (the "State Street Building") to Citibank, N.A. ("Citi"). B. Redlands intends to use and redevelop the State Street Building for Redlands' City Hall and as a result, Redlands and Citi have mutually agreed to a termination of the lease between Redlands and Citi pursuant to which Citi will vacate the State Street Building pursuant to that certain Termination Agreement dated January 16, 2024 ("Termination Agreement") and relocate to the Orange Street Property (defined below). C. In connection with Citi's relocation, Property One has agreed to lease to Citi that certain building located at 333 Orange Street, Redlands, California (the "Orange Street Property") pursuant to the terms of that certain Lease dated 2023 (the "Orange Street Lease"). D. In consideration of Citi's relocation to the Orange Street Property, Redlands has agreed to pay a maximum reimbursement amount of $1,100,000.00 (the "Reimbursement Funds") for the tenant improvement work to be completed by Property One at the Orange Street Property to be performed in accordance with the terms of the Orange Street Lease. E. Redlands is agreeing to pay the Reimbursement Funds provided for herein for the public benefits derived from use of the State Street Building as the City of Redlands City Hall, hi its approval of this Agreement, Redlands finds and determines that the location and purchase of new property for use as Redlands' City Hall would be impractical and result in greater cost and delay than use of the existing State Street Building. F. The parties desire to execute this Agreement to set forth the terms and conditions of the disbursement of the Reimbursement Funds to Property One. 2. Disbursement of Reimbursement Funds. Payments under this Agreement shall be disbursed subject to the following conditions and procedures: 2.1 Conditions to Disbursement. Redlands and Property One agree that the Reimbursement Funds will be disbursed in three (3) installments, to be paid by Redlands to Property One within thirty (30) days after Redlands receives written notice that each of the following conditions, as applicable, have been satisfied. Redlands shall not be obligated to disburse any of the Reimbursement proceeds unless and until all of the conditions are met with respect to each such disbursement: 1:\cmo\Agr=nents\Property One, LLC Reimbursement Agmn cent FY23-0004.doex-ms