SECURITY CAPITAL PACIFIC TRUST REIMBURSEMENT

• approximately seven hundred (700) square feet and its estimated cost Five Thousand and No/ 100 Dollars ($5,000.00). SCPT shall not be liable to pay for any change in design or construction material for either the Bridge, Bridge Pathway, or Minor Pathways from what is described in this Reimbursement Agreement. 2. Timeline for Approval and Construction. City anticipates approving a master plan for the Project by February 1, 1998, completing construction documents by April 30, 1998, and completing the bid process in May, 1998 with construction of the Project commencing during the summer of 1998. Provided that SCPT is not in default of any condition of this Reimbursement Agreement, SCPT may continue with the development of the Property and occupancy of the units constructed thereon even if the Pathway is not installed at the time SCPT is ready to have units occupied. 3. Bid Process. SCPT acknowledges that City (i) is obligated to pay the Prevailing Wage and (ii) shall select the lowest responsible bidder for the Project. City shall direct that the Bridge, the Pathway, and the costs associated therewith as specified in this Agreement shall be line items on the bid request. In the event the bid costs for the Bridge and Bridge Pathway and Minor Pathways exceed One Hundred Fifty Thousand Dollars ($150,000.00), SCPT shall have the right to terminate this Agreement and proceed with construction of .the Bridge and Pathway as provided in Condition Nos. 17 and 18. 4. Subject to Section 3 of this Agreement, SCPT shall deposit One Hundred Fifry Thousand and No/100 Dollars ($150,000.00) ("Maximum Contribution") with City within fifteen (15) days following receipt of an executed contract for construction of the Project. City shall be solely responsible for the payment of invoices associated with construction of the Bridge, Bridge Pathway and Minor Pathways and City shall immediately provide SCPT with copies of invoices and disbursals. City shall not approve a change order to increase the cost of the Bridge, Bridge Pathway or Minor Pathways without SCPT's prior written consent which shall not be unreasonably withheld. Notwithstanding anything herein to the contrary, SCPT's obligations hereunder shall not exceed the Maximum Contribution and City shall reimburse to SCPT the difference between the Maximum Contribution and the actual cost of constructing the Bridge, Bridge Pathway and Minor Pathways within thirty (30) days following acceptance of such improvements. 5. Issuance of PUD Conditions 17 and 18 Issuance of Building Permits. Provided that SCPT is not in default in any of its obligations to City under this Reimbursement Agreement, Conditions 17 and 18 of the PUD shall be deemed satisfied and issuance of building permits for the Property shall not be tied to completion of the Project. 132392.4 2