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HomeMy WebLinkAbout04-23-12 Board of Public Works Meeting Agenda Back SolarLeaseBackupS.1.H CITY OF ITHACA EOM 9 x 108 East Green Street —3rd Floor Ithaca, New York 14850-5690 DEPARTMENT OF PLANNING AND DEVELOPMENT JOANN CORNISH, DIRECTOR OF PLANNING & DEVELOPMENT O PHYLLISA A. DeSARNO, DEPUTY DIRECTOR FOR ECONOMIC DEVELOPMENT "�ratAit� Telephone: Planning & Development - 607-274-6550 Community DevelopmenuJURA - 607-274-6559 Email: dgrunder@cityofithaca.org Email: im@cityofitham.org Fax: 607-274-6558 Fax: 607-274-6558 MEMORANDUM To: William J. Gray, P.E, Superintendent of Public Works Board of Public Works From: Demise Bebmker, Energy Sustainability Project Manager Date: April 17, 2012 Subject: Recommendation to Approve Solar Liberty Lease Program (solar PV) In November 2011, the City of Ithaca (along with other local governments, businesses and organizations) was approached by Solar Liberty with an offer to install solar PV (photovoltaic) systems on City buildings, through a solar lease financing structure. The initial offer was reviewed in the months that followed by the relevant City departments and staff, including the Attorney's and Controller's office and Engineering. A result of that process, this memorandum provides a recommendation for the Board of Public Works to approve the implementation of this project on one or two selected buildings. Solar Liberty, Inc. has been installing solar systems since 2005 and it launched its new `Solar Liberty Lease Program" about one year ago. Through this program, a solar PV system of 25 kW would be installed in one or more City buildings and leased to the City for a 15 year term, for a fixed monthly lease fee. The City then benefits from the electricity production of the system (with no up -front municipal expense), thus reducing energy costs and greenhouse gas emissions, in addition to demonstrating its commitment to support renewable energy sources. Yearly cost savings are guaranteed as part of the program Included in the program are the following services: site plans of what the proposed system will look like, structural analysis by a thud party engineer and drawings (stamped), interconnection with the utility company, installation, maintenance of the system for the life of the lease, and all paperwork involved. Two buildings have been selected and qualified for implementation of this project: The Central Fire Station and Ithaca Youth Bureau building. Following is a short description of the selection criteria and specific proposal considerations: The main requirements of the program are that 'the client" (in this case the City) owns the building (or has a long term lease), and has a minimum electricity usage of 15, 000 kWh per year. Additional considerations include the structural condition/stability of the building and the electric utility rates paid. Solar Liberty then looks at the building through satellite imagery to make sure the roof is large enough to house the system — if the roof isn't able to fit the system, a ground mounted system might be considered. Buildings are qualified (or disqualified) depending on location, size, and electric usage. Once a building is qualified, the company uses 30 years of average sunlight data, along with the tilt and orientation of the system, to estimate what that specific system will produce. The production of the system, combined with the building's current electric rate, will determine the system's .savings on an annual basis. An analysis performed by Taitem Engineering — as part of a "Renewables & Technical Services" contract — shows that the City would have significantly higher costs and payback period if installing such systems on its own. Based on this information, I recommend approving and implementing this lease program in at least one of the selected buildings, giving priority to Central Fire Station, for which greater savings are expected. For your convenience, please find attached Solar Liberty's proposal summary for both buildings, as well as the following proposed contract documents: 1. IFD Lease Agreement 2. IFD Installation Agreement 3. IFD NYSERDA Application 4. IYB Lease Agreement 5. IYB Installation Agreement 6, IYB NYSERDA Apphcaition 7. Benchmark Letter Sincerely, Denise Belmaker "An Equal OpportunityEmployer with fficommitirmt w workforce diversification. Solar Liberty Lease Program Your Savings Summary Organization: Ithaca Fire Department Installation Address: 310 W Green St., Ithaca, NY 14850 Congratulationsl Your building is a good candidate for a solar energy system. Solar Liberty offers to install a 25kW solar panel system on your building that is Guaranteed to save you money on your electrical costs. All of the electricity produced by the system is yours for a low lease fee of $125 per month locked in for 15 years. $16,000 - Current Electrical Costs $15,500 228,240 Current yearly electrical usage (kWh) $15,000 $0.07 Your current cost per kWh purchased $14,500 $15,977 Current yearly electrical bills $13,500 $13,000 Solar Production with Leased System 26,555 Solar electricity production (kWh) $1,859 Value of electricity produced $1,500 New lease payments $14,118 New yearly electrical bills $15,618 New electrical costs with solar $359 Your Savings With Solar! 11.63% Electric Offset SOLMLIBERTY' THE FUTURE OF ENERGY INDEPENDENCE 1,401YmorRle GimpI RiJlelo, Nv I"F)' I Mil, Nu RFNFW OA[ I:Nj 1 nlnm5n4 JPairymm Purchased from Solar Liberty Lease Utility Before Solar plus Utility a Utility Cost ■Lease Payment 01Solar Savings Savinas Guarantee: Solar Liberty guarantees that the lease payments for any annual lease period (12 months) will be less than the amount paid to the utility company in the 12 months prior to signing the lease agreement. If the lease payments are not less than the utility savings, Solar Liberty will refund the difference. Solar Liberty Electric Company Solar Equipment Lease Egniamrnrtearr Nnmher 296_ _Jmsd mq/ ApH11, 101E NomennJ Adlresu fLesrcsc None anJAJJ,ess pfLamr' CHY.fills a Sala, Litnry Eleenk Caulpanri Ins CantroH'rso la 6500 Shrddan D,. Sake 120 IDS E pets SL HaQdo. NY 14221 EQUIPMENT DESCRIPTION AND SITE PLAN: SEESCHEDULEAATTACHEDHERETO. Ale, 1. xsaev ss lhl Lmse, Levee amhunzu Lessor to ism ant' mivinK i f rmarinn nr rNanBe anv iwoeurare inJurmalion (surh ae r4e aerial aombnlo,a strdulrl inn, 111, Equipment Dexcei11ioa UMM THIS AGREEMENT INCLUDES THE TERMS ON ME FOLLOWING PAGES, SCHEDULES AND EEHIBITS ATTACHED HERETO. LBeeeo: CkyollMece Lesmr Solar Liberty Eleclde C0oSsh0{Irrr. By: Aden KRl to Too: Prnedenl polls lor. I. LEASE. Lessor hereby agrees m bass, m Lessee. and Lmee hereby ammo IM lease fmn Lessor, the penoml P.11 descdbed on Schedule A to this Solar Equipment Lease (the %.aam') on the terms BM conditions as, but herein (such papmy regethcr with all .,In. .o. mlu,no am, pml, unpmvemmts, repairs, and acouson. and ell additiam incnma clod thercin or aimed lhneto bang reRrred. m.m ns the"Equ lmocal" ). Lessee's oemtian of IM1is Leese shall ubligem Lme, to Icase the Equipmmt fiom Lmor. This Lease aM1ell mat be binding on Lessor unless and omit exmmed byLmvr. Anything to the confory notwith9mding, Lssor shell have no obligation to accept, exacme no enter inre this Lease of to acquire or (rase to Leo. the Equipmmt Title la the Equipment shall al all lima remain in Lo sair during the tern of the Lease. 3. SAVINGS GUARANTY. Lessor agrees that the Basic Rental Payment, fof any annual lease period (months 1-12) paid by Lessee wit cool elmom the Lessee's Historic Utility Payment. The •Ilimorw Utility Paymenl' shall be the sum of the [Dinh of ....is paid by L. to Its twork, with, provide, for electricity, including any and all muted rate charges, sureharga, toes fen end panatelas far the twelve (1E) month period immediately ineemmg the Lmse Commencement Date. The Lessor agrees that If the Basic Rental Payment for any annual lease period wends the Historic Utility Payment. Lessor will pay Lnaee an sent equal to the difference between the Ilistoric Utility Payment vad the Basic Rental Payment for such annual lase period Lou¢ agrees that the proliumm an Borth la this Pan¢noh 3 shall be rubjmt to Leasee•s provision of documemaoon coefirming it, Historic Utility Payment to the safe! onion of Lesmr. d. TERM. The 'Leave Comun mucamm Due' For this Lease aM1ell be the doe set fort below Lessor's nignatum hereto and the Lease shall Continue for the Initial Term set with above unless earlier terminated by Lessor as provided herein. AI the expiration of the Initial Tenn, unless Loam shall have renewed or Drummed the Equipment from Lessor pursuant to Pamgmvb 16 Or returned the Equipment to Lessor in accordance with Paragraph 12 a. RENT. lot Lessee shell pay as monthly borne rent for the Initial Term of this Lame the mnamt abown an the first page of this Leese and on set FDA m Schedule B hems (' Basic Reatal Payment"), Provided Non the ag,m,11 Basic Rem Payment pool by the Lame during the Term shall he less then the Tom[ Net S,wa Cash. as act fort in the Smmunmy of Payment Terms above. The Gaie Rental Payment shall be payable in h mwilmm0 in the arramom and on the data provided in Schedule B aphis Lease, plus ony apphrible ales and we in themon; provided boweven that Lessor and Lessee may atone to any miser payment sehedok, in which event Schedule B Audi be amended by Lessor to rcikct the new payment schedule upon wrinm notice horn Lessor to Lessor. 5. ENVIRONMENTAL FINANCIAL INCENTIVES AND ENVIRONMENTAL ATTRIBUTES. All Environmema[ Fimncio Incentives and Environmental ABnbutes available in connection with the Equipment, Other than IM1.e spmifli assigned to NYSERDA pursuant to the Installation Atonement, art retained and owned by Lemor. Lessee shall Duke all reasomble crossbow m exist Lmaor in obroirm, ell Environmental Financial Incentives currently available or subsequently made avaiable in connection with the Equipmmt. If L.ae foih ro an m good Dith in inking actions momoubly requested by Lessor. and such failure results in the Tres of an Environmeatal Firmmial Incentive that would mM1crwim be ..silent , Lessor sh.11 reimburse Lesson for the full smomt of such last Environmenml Financial Incentive. For purposes of this Lassa. (H "Eadmiu mul Fimanai Incentive" morns the following firancim imentives that am N eIi t as of the Lease Commencement Dam or may Come into effect in the f nurc: (i) fedeml, sum or ]mail ma credits (including invesmeat in credits arising Muter 'be Internal Revenue Cade and gams in has thereDO, other cox maefls or Boom in lieu thereof (including without limitation the monewoMmo of tm beneGb), and (it) all reporting rights with respect on such incentives; and Iit) "Environmental Anagram" memo, without limiation: Ii) bailable renewable c sniftc des. Ween- e trigs, allowances, reductions or.,her mummoble intim. denoting carbon off m credits or indicating generation ofn Ponieclor quantity of energy ft= a renewable energy source by a remwab]c energy facility Donated a the energy combed by the Equipment during the Tent masted Order a renewable energy, emission reduction, or other mi aning pronoun adopted by a governmental aohonly, or fro which a registry and a market exists or for which a matkn may miss at u fuure time, (it) performancebmed incentives, moon aad Day Other incentives under any utility's or any mum %Deist pogrom or initiative. and any other incmtiv4 cenifreate, subsidy. award. grant or mon.,nic bmrefil, howaoam named m remoras! la, with reaps m any and Bit fuel, emissions. air quality, energy generation. r other en imenmemd or energy chametenoics, nauhingfrom the communion or upemIion of the Equipmmt or ham the Mae of elm ,smarnion mum avoidance o(the emission of any g., cl mtiuol or other substance into the air. Boil or wale, otnbutable to the sale of energy generated by roe Equipmmt motor than F.nvirommmtal Financial Incentives). All manages related. the sale of Emima neoal ARdbates shall be callmeml]y assigned by I. m Lesion in azmomirme with Paragraph 6. If musicianly requested by Lessor, Laam Shall provide Lessor with acknowledgements foam the emanterponia to such emtmds, acknowledging the colluteml assignment of such conimcm and Loam's rights to much contracts. fi. GRANT OF SECURITY INTEREST. As collamost.,murity for the payment and performance in fait when due (whether el stated mnurity, by ecoulermima of mhomome) of Lesee'a obligations hereunder, Less. hereby assigns, pledges and gams to LmoO a seeunty interest is and continuing lire on all Of Lessee's right title and intmeat (if any) in, to and under the fallowing, in each cox whether tangible or intangible, wherever located, and whether now owned by Lexec or hereafter acquired and whether now emitting or bereagm caning into esisrenem (the'ColDtenl"): (i) the Lessee's leasehold Dacron in the Equipment. 04 all-nownimrs, asioiug m hereaRm commit into by Lme, mloing m the Operation, maintenance or me and occupancy of the Equipment air the mile of Environmental Attitudes. including winnow, limitation, ell [nswmemm end documents executed and delivered with repeal Ire such agrecromm. -,he creme may be ameude4 supplemented or more ise modified ,ran time rat time in occoNeme with the terms thereof .ad thus Lease (such ggrommm0 as ao amended, supplemented in modified, Icing the "Project Documents'), including, without limitation, all rights of Lire to receive moneys due and to become due under or pursuant m the Projmn Doe .Dll includin, without limimti m, those agreemeom indicated on Seheduk C hereof any daumeals evidencing Loam's eloi. to the menu rebates, Midnight., or incentives applicable to the EquipmM (iii) Runronmrnul Attribmn end the ememe ly canonical by the Equipment, and (iv) aad ell mcoee3' of the maggaing. When Lessee's obligations hereunder M1ave been paid in fal, the meeurity imematm and lima gaoled pursuant. this Leone with respect o the Colhieral shall tominam, all rights granted hereunder with respect to the C011awrol shall men back to Lessee, Ord Lessor shall, of eaPeme of Lesaea, execute and deliver io Lonsew upon such wormokin ouch mmou"ion stawareap and any .,he, w m m in summations, reasonably uqucaied by Lance to effort the termination and whose ofthe security mtereos. ]. NO WARRANTIES. TITS EQUIPMENT IS LEASED "AS IS, WHERE IS". LESSEE ACKNOWLEDGES TUT: LESSOR IS NOT THE MANUFACTURER OR INSTALLER OF THE EQUIPMENT NOR THE MANUFACTURER'S AGENT NOR A DEALER THEREIN; THE EQUIPMENT IS OF A SIZE. DESIGN, CAPACITY. DESCRIPTION AND MANUFACTURE SELECTED BY LESSEE; LESSEE IS SATISFIED THAT THE EQUIPMENT IS SUITABLE AND FIT FOR ITS PURPOSES; AND pupa P des'sa LWviry. LonMY. u-IFiSE LESSOR HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY WITH RESPECT TO THE EQUIPMENT, EXPRESS OR IMPLIED AND LESSOR SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE. WE QUALITY, CONDITION OR CAPACITY OF THE EQUIPMENT OR THE MATERIALS IN THE. EQUIPMENT OR WORKMANSHIP OF THE EQUIPMENT. LESSOR'S TITLE TO THE EQUIPMENT, NOR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER. LESSOR SHALL NOT BE LIABLE. TO LESSEE FOR ANY LOSS. DAMAGE. OR EXPENSE OF ANY KIND OR NATIIRF. CAUSED, DIRECTLY OR INDIRE(TLY, BY ANY EQUIPMENT OR THE USE OR MAINTENANCE THEREOF OR THE FAILURE OR OPERATION THEREOF. OR THE REPAIR, SERVICE OR ADJUSTMENT THEREOF. OR BY ANY DELAY OR FAILURE TO PROVIDE ANY SUCH MAINTENANCE, REPAIRS. SERVICE OR ADJUSTMENT, OR BY AN INTERRUPTION OF SERVICE OR LOSS OF USE THEREOF OR FOR ANY LOSS OF BUSMFSS HOWSOEVER CAUSED. LESSOR SHALL NOT BE LIABLE FOR DAMAGES OF ANY KIND INCLUDING ANY LIABILITY FOR CONSEQUENTIAL, INDIRECT OR PUNATIVE DAMAGES ARISING OUT OF THE USE OF OR THE INABILITY Tn USE. THE EQUIPMENT. No dffect or unftmess oflM1e Equilenml, many failure an the pan ofthe mmuf rc uref or the shipper adds, Equipment in deliver lM Equipment m any pert thereof ro Lesson shall mliwe Lnsee of the obligation ro pay rem m airy aha obligation homNer. Toth. .slant pemrimN by the manufettumr endbfvmder end provided I. is nor in defoth ondm the Lease. Lesson shall make avmlable ro Lessor all manufacturer smatter vendor warranties with mspert to the Equipmenl. and Lessee slid), and hereby is authorized during the Term, la mart it argue., at Lessees sole nsk, cost and mpeme, from time retime, in the name of and for the account of Lesm and/or Lessor, m their interests may appear, but without pmjvdice to Lessor, whatever claim and rights Lem= matter Lessor may have against any manufacturer or supplier afthe ex,uipmenl comprising the Equipment. g. COVENANTS. (d AlBmmive Covmoms. Lessee shall it comply with all applicable laws and regulations and roles; and with the conditions and requimmens argil pitheia of imumnce reining to the Equipment and its um; (ii) err any and all times during business hours, grant Lessor flee access to rarer upon the pemses' wherein rive Equipment shell be IocalN or used and permit Lmsmm impact the Equitation; (III) cooperate with the Levem to do all things necasmy to preserve, screw, and kecp in full force and effect all necessary consms, approvals and mah.¢.ions with governmental authorities and nangavcmmental permits required in councelion with thin Lease and th. me of live Equipment; (iv) irreg riled by Lam, abmm an mkmwledgm ul by thewmturpany of any agrwnmr mlamd to the sale m receipt or any Environmental Auribule of tM cmlareal mn snout of Lama's rights in such vgmemmC and (vin) provide Less. with thirty (30) days notice in event of a change in ownership or lille.f the premise wherein the Equipment is boded. (b) Negative Covenants. Lessee shall not (i) voluntarily or involuntarily crmre, incur, assume or suR to..... any momgege lien, security among, Fkdie or this moumbmme m attachment of any kind whosoever upon, aRming or with import to the Egmpmml, the Colleleml, this Lox of any of Lmsae'x imams thearani (it) pcmmil IM1e remo of any past ....union an corporation other then Lessor or Lmee to be placed on the Equipment: (in) pan with p uawsim armorial of or suBon err allow m poss out .f is pomessmn m central any item of the EquipmuM m chmge the Imalim of the Equipment m ary pen thereof from the address shown above: (iv) ASSIGN OR IN ANY WAY DISPOSE OF ALL OR ANY PART OF ITS RIGHTS OR OBLIGATIONS UNDER THIS LEASE OR ENTER INTO ANY SUBLEASE OF ALL OR ANY PART OF THE EQUIPMENT: (v) cause the Equipment to be, pit miumq mken out of anion: (v.) m maL waive m viols any of the material terms of any Protect DominmS or NO cosigm sell mmfer or in my way convey is rigin, duties err obligations undo the Lease wid om rive pint wrinm convent of the L.I. which consent shall nap be unreasombly withheld or delayed. 9. TAXES. Lost shall pmmpdy Pay when due all calm. use, purpoty, excise and other Imo (including, without IhnilatMm nc.ne tmo colleted by deduction or withlmmng) and all limme and regstmtim lea now or hereafter imposed by any govemmmml body in or o y upon the Equipment or ipa ono, for tit ownership, delivery, laming, possession, thega ape or other repave Mum no ether disposition of the r Losseenr m far rentals b or registering the . how. rn, hi upon the rrcome or deeriredtoProceeds y war with report to the Equipment a Lose or the mnmis heauntlm: provided. Ipwwm this Lettee shall not be enquired t Prey meet an or ancvaurtd es the net incmn. of Lmmhr. Upon sryuesl by Lmvr. Lessee shell oUk zed rile all cox jamm relining ro rose for whkh Lessee is responsible heremdm which Lemur is pemirlN to file under the laws of tee applicable �axingjuri%dttion. M INDEMNITY_ Lase M1.cby epees rot nd.mnify and Mld Lessor harmiss fr.n and egnimr any antl all claims, losses. liebililies. damage, judgm.s, suss and all legul proceedings, and any and all toss and espenses in connection dr mwhh (including vmomeys' ress) miming out of or in any manner conned with this Lose, including without Houston, claims f. Mary m or death ofpmulls aad far dous., to pmppy. including without linnadiom cony claims based in negligence, alms, liability in tort. enviinmenml indemnity, or inmllmmuUmarp in, ind' i,ormal. Lessee %hull give Lector pomp nplim of any such csim err liability. I I. ASSIGNMENT. I.., may assign is summit in this Lease it sell .grant a aecuriry interest is all or any pm of the Equipnm, without notice 1n or the consent of Lesser. Lessee agrees not to assert agaiml any assignea of Leong my claim or defmx Loses may have against L... or. In the went ofa change in ownership ar title of the Premises wherein the Equipment is ].led, Lessee my assign this Lear, upon venum notice to Lemw, to the new owner of the Premiss, provided that such new owner shall agree in writing to resume ibis Lase. and Loxes shall mhnburse Lmmr for my Ions ofEnvimnmenml Financial Incentives or Environmental Attributes. Q. EQUIPMENT PERSONALTY. This Leax v and is immded m be. lease of persoml propemy for ell purposes. T he Equipment shall remain personal property regaNlets of its mtuchmen, to fealty, it Lessee agrees to taltu such scrim at is apeme m may he nmeasary to Prevent any third parry from acquiring any interest in the Equipment m a mull of is eadbiem to renry. If rarymted by Lessor, with suspect to my them of Equipnent Lvasee will obtain and deliver to Lessor waivers of in,eret or loon in meardabk Tam, mrisfacmry to Lmwr, frmn ell person%claiming any iMCMt n,M1e rut OmpenY on which rive F.quilmmt is iirellN or looted. 13. USE AND MAINTENANCE. Lessee will use IRA Equipment with due cam and for the pnrpme fro which it's IniNN. Lessor shell. to Lomr's cam end .sparse,.pent.. mamotor smite and repair the Equipment in good operating order, repah and condition, ordinary wear and cam meepled Lessor may. m its soledverroun muse v third >�perm- perry opemlar m pividc rho serving described in this Paragraph All , mNif Liam and impro-was Ion the E,tionete th.11. when iminlN or made, mordancy --am do' property of Lases and pan.fibc Equipment For all purpmees 14. LOSS OR DAMAGE. Except m e resat of Lemor'x.dioi, Lessee assmnes all nsk of any dmnege m err loss, deft coot rim err desticlim ofrhe Equipment fivm.ny came whosoever from de Lome Commmccmem Dele though the end ofthe Tem. Lessee ahnl advise Loma in wring pimply ofany loss ortlomege m the Equipment and the ciium%rances and mtenr of such damage. )yeaaaxdnLmaMAssucia ^Ww.mc --e 15. INSURANCE. Last. shall abtain end mainmin on or with r.pml la the Equipment aI its own upense L0 liability a — wring almost liability for bodily injury and papery damage. and IN all-risk physical damage insurance (including without ILnilation camsua,h,c risks) inuring against Imes or damage to the Equipment in an enmwl ram less In. Termination Value. Lenin, shall famish Leor with a condition of impose evidencing the Ismance of policy or policies naming Lessor m an additional named themunder for the liability coverage and as loss payee far the property &range coveri Each such If, shall be in such farm end with each ins. an may he mt®Oeory m Lessoq shall insure Lasaor s inleasI, regardless of any breach or viomlian by Losses of any warranties, declamations or cambiums in such p01ici.: and shall cocoon a clause requiring the insurer to give 1a Lower at Ie t 10 days price written noise of (1) the ormallmort oreach Polity or (it) any amendment its life icons ofmch polity ifmch amendment would muse the policy no longer to conform Ian the Policy requirements seed in this Paoaemah I . Lame dust be under no duty an ascertain IM1e evenmm of or to examine any such policy ar to add a Luxe in the event any such policy shall as comply Isilh the recarmlents heaoL In the event that Lessee shall fail to obtain the insurance aquid order this Paragraph IS Lamar may ,main insurance in accordance with this Paragraph aud L.sa shall he raquid in amorous, Lessor for all rmmmbe rem and expenses, including immune, premiums, tar rgrrteClitn lheo wllh. 16. END OF TERM. Upon expiration of the Initial Term of IM Lease and, except m othcrwim s}sifically in fanh herein, any orm ewal co, and, provided thin the Lease hen no been teminated early and Lessee is in compliance with the Lease in all reapecm and no Feem of Default hen occurred and is contiming, Lessee may upon at least 180 days and not more than 365 days prior wrium come to Lessor eeercim one of the following options: (i) pechme all (but car less than alp urine Equipment for a purchase price equal to the then Fah Mmket Value of the Equipment. Upon such indefeasible payment. Lmsor will transfer to Levi on an AS IS BASIS (fees and clear of any lieu attributable to Lmsor), all of Lessor's interest in and to the Equipment and shall release in, lien on the applicable Collateral. Lmsc, shill pay any sales and use times due on such transfer. Leaser shall ram he required to make and may specifically disclaim any representation or warranty as to the condition of such Equipment and some mantles (except Ihal Lessor shall warrant that it has conveyed whatever interest it received in the Equipment fain Lmsee, free and clear of any liens attributable to Lessor). At I.', expense, Lmsor shall promptly execute and deliver to Lesson, such statanems of nomination, m com imbly may be equirM in order to release or terminate any interest of Lesser in and on the Equipment and the Collaeral and perform men.,her visions. Lt.. may amommly.,.I to e(fineale the foregoing, or (it) renew the Lease with respect to col ofihe Equipment.1 the capitation of IM Initial Tew Or the Iben Fah Modteo Renal Value of lho Equipment far a term to be agreed upon by Lmstt and Lamar. "Fair Markel Renal Value" of the Equipment for ,epos. of the poceding mr. shall be an amount determined according to the following procedure. Upon rteeipl of Lomm's notice ofemetion to maw the Lease Lessee and Lmsor will mompal to agree an an amount during the next 30 days, and the smoanl so agreed upon shall M the Fair Maktl Rental Value. In the event L.sm and Lmsee camel agree on an owl during such 30-0 y period. When earn any shall choose an independem mptaisea and the Iwo apmincers shall each domain the Fair Markel Renal Value airline Equipment an be bobs of an ma's -length ttansaction between an informed and willing l.sor and an informed and willing lessee under no compulsion to lease. The average afthe amounts detemined by the Iwo appraise. shall be the Fair Market Rental Value. Each party shall pay the expense ofine appraiser it chaoses; or tid return the Equipment In Lmsor in a earomme with paragraph 17 oflM Lease 17. RETURN OF THE EQUIPMENT. Upon the expiration an earlier facrimticn ofthis Lease by Lasor(wkss Lem Pgeteri the Egwparml penman to paalpaph I6). Laxe shall ream the Equipment to Lessor m accordance with (i) or (it) below. (il Issmr shall dmage fonhe de-inmlmlion and disassembly and packing ords, Equipment logsther wish all Pans and pieces and Then reinlallmion and amsembl, limludmg if necessary, repair and uvedmul) at it sale cost and expense. Lmsor agaa to cooperate with the Lessor in all amme in order to make arrangernmm with respect or such de-inldlalion reed dissmembiy of the Equrymenl and in ensure that all Equipment and. an the Lease shall be rammed to the Lam, in a manna cammont with prudent industry, standard.. (it) Per Lamr's instructions, Les.¢, shell aermal the F.quipmem to Lemur installed and in use at the Equipment Locution set roM shwa foe and clear afany rights an flown. of Lem and Lessor tar a qualified third -patty sumpro mey no Lessm) shall operom and maintain the Equipment at the Equipment Location and Lessen shall continue to grant Lmsor access rights ,..am to the moms hereof. 18. ADDITIONAL ACTION; EXPENSES. Lessee will prmnplly eaecme and deliver tu Lessen such further do.... sad mks suer fnthm seliesmm Lessor may request in other in carry am mart cR teal, the intent and purpose of this Luse. Lessor and any assigner of Lessor is nulMri d to file awar mart Uniform Comment, Cade framing smremenu without the signature of L.am or signed by Lemon m any a.ignecof Lessor as mtaney-in-fact for Lesxa. If Lessee foils to perform an comply with my arm agreements, Lessor mry esteems o comply with such correction in to own come or in Lessee's name as together w h i and IM1e amowl of any paymeats and expenses of Lessen neural in connatian with such Perfoweme or conplunm, togelMr wilco mtartsl 111CROn at the cote provided below. shall be barred mar payable by Lnsee upon demand. 19. LATE CHARGES. Barry payment whether for can m otherwise, is net and when due. Leor may impmc a Isle charge of up to 5%of than mount past due (or Unemotional seem pains ad by applicable law, if less). Payments IhomRer received atoll be applied first o doliequem inmllmenm and then to current Immllmonm. 20. DEFAULT. Each arm, following seems shall cmilime an"Event of Dehuk" Fcrewdw. (a) Lessee shall fail in pay when due any instillment of basic ant m other amoral under the Luse; (b) Lance shall fail to observe or perform any other egreanml to be observed or performed by Lem Mrewder and the mmmuance themar rut 10 calendar days following written notice Ihomfby Levine an Lesaz: (c) Len'me, shall cease doing business as a going moment or make an apparent fen the bmtafrt of creditors: (d) Lmmee sholl voluntarily fie, or have filed almost it involuntarily, a Pnilion for liquidator. rmrgertizetioa adjustment or debt, ce similar relief ceder me federal Bigi mpsry Code or any ether present m fuwre federal an slam baNuuptcy or inmlomey law, or a trustee, receiver. or liquidator shall be appointed of it or of all or a substantial pert of its etas; let an went of default shall incur order any other obligation Lmsee ow, an Lessoq (D an even) of default shall .. under any indebtedness Lose, may now on, bervfier we to any aflihata .1L., (9) any rep—mosion watranly ur rant rmed, made by Lessee in eunnmian with the Leine (including any amlecomm or information provided by L. in connection with Lessor's application under Sector 1603 of the American Recovery and eeinv.wrnt Act a1200 for won row aW.: sear LweM Name eweavar con - {EASE Payments m lieu of lax audio for IM1e Equipmrn0 shall be, wrue or misleading m my manowl respect as of the data the same was delivered 10 Laser. or (h) the Lease fails la provide Lessor with security interests in the Calhleml and Lessee fails to necessity such event 21. REMEDIES. Lover may acmkx any dber riPftl m remedy evailehle to i[ by law or by egrecrnem, end may in any went tawtt legal( and other expenses incurred by Masan of an Even[ of Default or the exercise ofwy mealy hemwder. Lower shall have all of the rights and f¢medies with nspM to the Collmem) of n scoured par under the applicable Uniform Commemial Code and such additional rights and temedies to which a secured party is entitled. No remedy given in this Paregifirrin2l is intended to be sclusive. and each shall the cumulative but only to the extent incomes, to permit Lessor to recover amounts for which Lmsm is liable hereunder. No expMas in implied waivtt by Lesser of any breach of Lessee's obligations hereunder shall mv[itete a waiver of any other brooch of Lessee's obligatiotn hereunder. 22. NOIDCES. Any written active huander to Lessee or Lessor shall be deemed to have been given when delivered p ratmally or deposited with a rtI.Ocal wvougho caurttt service or in the Urged Stun mail, portage prepaid white ssed m fecipied at its ad esi sec forth an the first page fthis Lase or al such Other address as may he last known to the wndo.. 23. NET LEASE AND UNCONDITIONAL OBLIGATION. This Lease is a completely no Ian and Lessee's obligation In pay rear and ..am. payable by Lessee hemmadois wcontinental end ittememble and shall be paid without any abocamr, reduction, so flor defmas.for, kind. 24. NON -CANCELABLE LEASE. This Leese cannot be canceled or terminated except as carnality provided herein. 25. SURVIVAL OF INDEMNITIES. Lessee's obligations under Pamemnhs 9 10 and 21 shall survive uncommon or expansion ofthis Lease. 21s COUNTERPARTS. There shall be but arm ewmegmn of this Lease and such muntcrfun will be marked "Origmol." To the extern that his Lease mmttlutes chapel papa has the[ term is defir al by the Uniform Commercial Cade), a security intent may rob be enand in the Lease marked "Original"' 27.NON-WAIVER. Nocomseofdalingb m[ nLasorwd Less mmy&k yoramissimontF ponof Leswrinexmisingany rights hereunder shall opemtc se a waiver of any rights of Lessor. A waiver oo any one ocasion shall not he mostano a a bar m err ott army right ar remedy assay fWute oasiwas . This Lee is a net lease and a "nuance lease" undo Article 2A of the Uniform Commercial Code. To the eatent permind by applicable low, Lass Fereby waives my and all rights and nmoies concerned man a Lanz by Article IA-508 through I -522 of the Uniform Commercial radC, including but rip limited te Lessee's rights m: it canal this Less¢: (it) mpothmo this Lease; (m) rijmube Equipment; Ov) revoke Nerviowee of the Equipment; (v) mwerdwatim Son Lessor I., any Issuance of..ty m his any other Mason: (It) man o secmny interest in the Equipment in Lessee's possession or mnwl for any reason; (vim) dome all many Pan of my claimed damages mulling from Lsmr s delhult, if arty, under IM1eLase; (vital accept panel delivery or the Equilawm: (is) "ever" by making any plachnew or Icac of or mooed to purchase or leave Equipment h substitution of Equipmat identified to this Leese: (a) recover any permit, special, incidental, or emrscquerand dvnags, far any more whats.wer; and (xi) specific performisom ter leviv, define, saluaOMtiaq chin, delivery or the like far the Equipment identified to his Lease. albeexre LowerriRoby echo urgelaw, Lsscehahemmnt iv misigion, anowog's dpwmc as dby smwteorolh 21 or which may requite Lessor to sell, lease y otherwise use my Equipment to under eri u of Lessor's damage m sit I'aM h Pammenh 21 m which may Otherwise limit or modify any ofLcssor'rights or remedies under Pen¢nph 21. 28, REPRESENTATIONS AND AGREEMENTS. Lessee hereby represents and or. that: le) eRedive on the dart nn which Lssm exmma this Lcsc: (i) if Lessor is en entity, nc� mammon end tldivery of Nis Leine mJ IFr pafmman t of Lessees behalfiof bereunder have been duly aulbeliao rm all nerasary action w the passe Lessee: (ii) [he person is Lowe Ibe Lae on behalf d L�ec is duly ambori d; lei) all lid and provided by Lessor is Lessor in cwnenion wi[h this Lase is we and wm'C1: wit liv) this Leese cwatiwms a legal, valid and binding obligation ofLasm, mfonable ogailmm Lease, in a crodwce with its terms: (b) the Lase will not violate Isaac's .... a¢ati... I documents or applicable) and will nod viola¢ or mull in o default under may agteemrnr or Other tnmmmml binding upon Lessee: (c) Lessre 0) seraphim with, and will continue to amply with, all applicable mvmwmmml laws with respect to the Equipment Location, (it) is sat subject to any environmental liability with mpecl to the Equipment Location (is) does not knew of any fact, cirthrompoce o wndidon with mines, m the Equipment Location then would mortality he expected on molt in on environmental claim; (it) Lessee has provided Lollar with We, cored and complete copies of IM1e Project Documents le) Lma is not, and will nut become, a a mull of Lssee's excculion, delivery of performance of this Leese, subject 10 missialmn (i) wdar the EPA, the Public Utility Regulatory Policies Act of 1998 CPU RPA- ) or Public Utility Holding Company Act of 2005 ("PU 11CA 3W5'I, awl, as amended or any regulations rhrrrwder or (it) as im "elmaial .,oration,"public utility -err the emivaleal antler any applicable sale law, a amended, or other applicable law; (p Lessee is the sure awn, of the Collateral (other in.. the Equipment), has good and valid rifle to each Collateral, mandate all righ,. lid. and interest tbentn, flee and clear of all It.,,; (g) Lessee hes grwmd to Lessor a perfected furs( priority lion on and security imeml in [he Colldeml in which a security interest may be creased antler Article 9 ofrhe New York Uniform Commercial Code; end (h) neither Lesser, nor 10 Lwsec's knowledge. ony aKllete of the Lessee lit appar, on the OFAC SDN Lisq (ii) are included in. .wool by, consulted by, Main, for err on behalf of, providing ashtmcw supr on, sponsmhiI, or services of any kind to. or otherwise swooned with any of the pedmts or entities referred to or described in the OFAC SUN Len; or (ill) have conducted bminuss with or enga,ed m any .amnion with any person or ¢nary wend an any of the OFAC SDN Lear m any person or many included in, owned by, controlled by, aging for or on behalf of, providing ossgtenee, support, sponsorship, or service of say kind m, or otherwise esswtatol with any of the person or amnia referred to Or described in the DEAL SDN List. Far now a1. soartworyrn. 1 awa1 me -IFASP Farmers of this Lease. "OFAC SON List" means the list w"'Specinlly Designated Nummals end Blocked Persons" malmuned by the United Smtes Department ofTreasary Office of Foreign Assess Cannot. 29. TAX REPRESENTATIONS AND AGREEMENTS. Lessee re,gami werrnnu and agrees thee (a) neither L. (star any of its aRllates) has claimed or will claim that Losses, is the warm, of the Equipment or any portion thereof or that Levee is otherwise entitled to all or any of the Preiro aramod Financial Incntle., except - authorized by the Lessor, and neither Lessee nor any of its Affiliates will file any Ina return or take any position that is inconsistent with the aeatment of L-sof as the ..or ofrhe Equipment ar any portion therm!; (b) Lessee he not previously assigned to any other patty any rights to the F.nvimnmanul Financial Incentives, and Lessee he, ma knowledge the any other pany has a right or has claimed a right to all or any pen of the Environmental Financial Incentives; (0 Lessee will provide to Lessor (or its desigmm on a timely basis mry documentation required an support eligibility (or and to establish the amoud ofany and. in lieu of sex credits that Lessormay claim (a) following submission of any application by Lessor for gents in lieu of sae credit. Lessee will provide to Lessor for its designee) on a timely basis any documentation required to demomtmte met the Equipment remain eligible far.M pants and such other documents or Lessor- he United Smes Dmar.mml ofrhe Treasury ('Treasury" ) may, requ-l; (O all informmom that Lessee has provided Ir Lester purame, to this Lease is as will be we and accurate in all material romance, and Lessee will formally inform Lessor if Lasser demmrinee that any such information was materially iaccurate or monism; and (g) Lessee shall -ecure and deliver such other cenifimus end other resume. end eke such her mticas as may be memorably requeled by Lessor in Lumbermen of pails in lieu of sex credits that Lessor will claim with regunt to the Equipment Jo. MISCELLANEOUS. Thu Lease end .M [continuum Agreement cmemiame the entire agreement Mtween Lessor and Lessee and may be modified only by a written iemtmenl signed by Lessor and Lessee. Any provision of this Lease that is umnforceable in any jarisdidian shall, as to such jurisdiction be inef! five to the eaten of such a crforembilily withrm invmlidning Has remaining provider of This Lease, and any such umnfomeability f any jurisdiction shall not render ummf meth, each provision in any other ju baliuion. Permit headings me for convenience only, are not pan of this Lease and shell not M deemed to of= the meaning of reommion o !any ofrhe ptromemu hereof. In the svent there is mom loan one Lessee named in t his Lease. IM1e obligations rf-ch shall be lead and several.Lester may in its sole discretion, accept a photocopy, elecomindly wousen ad fneimile- .,her Monsignori of this Lease (a "Counterpart") sa the binding and eRectioc record of this Lease whether or not an ink signed copy hereof is also uived by Lessor tram Lessee. provided, however, that if Lessor accept a Caonmpmt a the binding and effective record hcrmf. the Coanmryan acknowledged in writing above by Lester shall constitute the accord hereof. Lessee apma Had such Cmanda wd recriscal by Lester, shall, when acknowledged in writing by Lessor. emal me an original dmmnmt far the Faufamee of establishing the provisime themmf and shall M legally admissible under Has them evideace rule and binding on and enforceable egained Lessee. If Lessor worries a Counterman as the binding and eRective accord hereof only such Commitment mkrowledged in writing shove by Leaser shell be meshed •'Original' and to to. exam, that this Leese monstrous chauel paper, a security iota-. may only be cacmod in the Lease that Mars Lessar's ink signed ocknowledge Bard and is marked "Original"This Lease shall in all r-pece, be groomed by, and comtrued in accordance with, the subliminal owe of the more of New York, and the Pani- (i) agree that any disputes arising under this Lease shell M sdjudiceted by a judge of the court having jurisdiction and shall M oared in Eric County, New York end (it) worse any right they may haven to ajury arm ofany claim or cause ofmlion hosed an or arising out of this Lease. TIME IS OF THE ESSENCE. WITH RESPECT TO THE OBLIGATIONS OF LESSEE. UNDER THIS LEASE. Pqe aMm'aonr LrbMbnMcomesix Ne-mFF. Scbnduk A Dettdplbn afEgn,.W sPe Amlian.: .Sim Addmas I ✓mnn L. Gibbs Or.. Gham. NY r4850 So'. She (CaPaCl3) 24.84W Edimmedymr I Praduciian 16.485kWh b me Denign Q(v 1I08).Solar Modules: Qry (4) Invenv DelNery POM Main Dinalbudoo Panel Derignllmmll See belonfordre plan and?evem larnm Pga)tlB; So1rLRarry EleWe CenVnn Me-.F E Sehoduk,0 Base Rem Schedules Month Estimated kWh Estimated Electrical Satan a Monthly Pont. Estimated Total Caat Saving. January 1236 $74.16 $125.00 -$50.84 February 1497 $89.82 $125.00 -$35.18 March 2322 $139.32 $125.00 $14.32 April 2775 $166.50 $125.00 $41.50 May 3249 $194.94 $125.00 $69.94 June 3144 $188.64 $125.00 $63.64 July 3302 $198.12 $125.00 $73.12 August 2909 $174.54 $125.00 $49.54 September 2350 $141.00 $125.00 $16.00 October 1760 $105.60 $125.00 -$19.40 November 982 $58.92 $125.00 -$66.08 December 959 $57.54 $125.00 -$67.46 26485 $1,589.10 $1,500.00 $89.10 1. I omr shall not m liable for any delay or impairment of pedbmmnce, resulting in whole or in pert from Acts of God. severe weather conditions, labor disruptions. govcmnualal decrees or controls, insurrections, war risks. shortages. inability to preem, or ship product or obtain permits and licenses, so pplias of matenals. or any other eireu msmnccs m causes beyond the consul of Lessor m the conduct of its business. Estimated Electrical Savings is contingent upon customer's current cost per kWh ($/kWh) from the utility company and is not n guaranty by Lessor. na.aaa sae�umm o-ss,C—wro..� .tusa Schedule C Pnyeci CocumeMe (i) any renewable energy credit sales agreement (ii) the Interconnection agreement (in) module warranlles; and (iv) Inverter warranties. ,,.s I. saki 1,.,M —�11.e---- Installation Agreement This Installation Agreement (the "Agreement"), dated as of April 4, 2012, is between Solar Liberty Energy Systems, Inc. ("Instatler"), Solar Liberty Electric Company, Inc. ("Owner"), and City of Ithaca, (the "Customer"), collectively the "Parties". Installer agrees to sell and install and Owner agrees to purchase a Grid-Intertie Photovoltaic Generating System (the "System", as further described below), at the Installation Location, as defined in paragraph 1 below, for the consideration and upon the terms and conditions set forth herein. Upon such sale, Customer shall lease the System from Owner in accordance with the Equipment Lease Agreement, executed by and between Owner and Customer for lease of the System and executed contemporaneously herewith ("Lease"). Further, the parties hereto agree that all rights and warranties provided to Customer shall continue through the term of the Lease. 1. Installation Location 3I0 W Green St., Ithaca, NY 14850 (Physical Address): 2. Expected Date of Installation: The later of January 1, 2013 or 180 Days of NYSERDA's approval 3. System Cost Breakdown: Photovoltaic Modules $109,792.80 Inverter $14,531.40 Mounting Racks $12,916.80 Conduit, Wires, and Material $4,843.80 Engineering $3,229.20 Installation $16,146.00 Total System Cost or Contract Price = $161,460.00 (Before NYSERDA Incentive) 4. DC Wattage for the System: 24,840 Number of PV Panels Is) Standard Raring (DC Watts) Total (Nominal) DC Watts 108 1 230 1 24,840 S. NYSERDA Incentive: NYSERDA Incentive Rate x Total System DC Watts Total NYSERDA Incentive $1.50 24,840 $37,260.00 $ $ Total: 1 $37,260.00 14 2670 6. System Cost After NYSERDA Incentive: Total System Cost SERDA Incentive = Total Net System Cost $161,460.00 $37,260.00 $124,200.00 7. Major Equipment Proposed: Brand of PV Modules REC Solar Model of PV REC 230 PE -US Modules Brand of inverter SMA Model of Inverter PVP30kW Brand and Model of Roof Mounted Mounting Equipment Racking System Brand and Model of N/A Batteries 8. Estimated Annual Output: Estimated Annual Output in kWh 126,555 Owner and Customer understand that the System output is dependent upon climatic conditions which are naturally variable, and therefore the actual output of the System over any consecutive twelve (12) month period may be higher or lower than the Estimated Annual Output stated above. 9. Equipment Location: Location of Inverter and PV System Meter As Shown on Site Plan attached to the Lease "Site Plan" Location of DC Disconnect As Shown on Site Plan Location of Utility Lockable AC Disconnect As Shown on Site Plan Owner and Customer understand and agree to the appearances, locations and mountings as described above. 10. Installation of the System: System Type Net Metering Battery (Yes/No) Mounting Type Grid Connected Yes No Roof Installer agrees to install the System on the Installation Location. Installer agrees that any equipment used for the System shall be new equipment and that any installation shall not commence prior to the approval of Installer's NYSERDA PON-2112 Solar PV Program incentive application. Except for any obligations which are explicitly and specifically set forth herein, Installer is responsible for the installation of a fully operational System for Owner, which generates and delivers energy to the point of interconnection for use by Customer. W02srw In connection with the installation of the System, Installer agrees as follows: (i) all work shall be completed in compliance with all building codes and other applicable laws, including the New York State Building Code and the National Electrical Code, and to the extent required by law, shall be performed by individuals duly licensed and authorized by law to perform the work; (ii) all components will be UL, or CSA, or ETL or similarly listed as required by NEC; (ui) shall, at its own expense, obtain a building permit, if required, and electrical inspections necessary for the work to be performed; (iv) in the event the System is a ground mount system or otherwise requires excavation, the Contract Price, as defined in Section 3, does not include the excavation of any excessive rock or any bedrock by Installer; (v) shall install and initiate operation of the System in compliance with all applicable distributed generation laws and rulings in effect at the time of the installation, but will have no liability for future possible changes to such laws or rulings or their affect on the operation of the system; and (vi) upon completion of the installation of the System, Installer will remove all debris accumulated by the installation and rough grade over any excavation work. Installer may at its discretion engage subcontractors to perform work hereunder, and Installer will fully pay such subcontractors and in all instances remain responsible for the proper completion of the installation of the System and compliance with this Agreement. All change orders shall be in writing and signed both by Owner and Installer, and shall be incorporated in and become a part of this Agreement. Owner and Customer understand that the System is a Grid-Intertie Photovoltaic Generating System that is required by state and utility company regulations to disconnect and shut down in the event of a utility or electric grid failure, and will not provide back-up power in the event of such a failure. It. Payment Schedule: In consideration for Installer's installation of the System, Owner agrees to pay to Installer the system cost as further described in Section 3 (the "Contract Price"). The full Contract Price shall be paid within thirty (30) days of the System achieving substantial completion of the construction of the System so that it becomes fully operational and commences generating energy and delivering it to the point of interconnection for use by Customer. In the event that the total Contract Price is not received in accordance with the terns hereof, Installer reserves the right to lock the System in a turned off, non-functioning position, and pursue any other remedies until full payment is received. IM02670 Owner has relied upon Installer to include any and all costs associated with the complete installation of the System to be included in the Contract Price. In the event that additional costs are required by Installer, Installer shall submit a written request to Owner explaining the reason for such additional costs and the additional amounts that are being sought. Installer and Owner shall make reasonable efforts to agree on a change order and revised Contract Price. If the parties are unable to come to an agreement within thirty (30) days of written notice, Installer may cancel the Agreement without penalty. Upon such cancellation, Owner shall fully refund any amounts paid by Installer, less any reasonable fees and expenses incurred by Installer. 12. Title: The Parties hereto agree that title to material, supplies, equipment and other goods covered by this Agreement will pass to Owner upon receipt by Installer of the full Contract Price. In addition, Installer will take all necessary steps to assign all manufacturers' warranties for the System to Owner. Title to all the material, supplies, and equipment incorporated or to be incorporated into the System shall be free and clear of all liens, claims, security interests or encumbrances and Installer warrants and shall defend such title, at its sole expense, against the claims of third parties. Installer shall immediately notify Owner of the assertion of any lien or encumbrance upon the System or any part thereof. 13. Eligibility to Receive NYSERDA Incentive: The parties hereto agree and acknowledge that Installer is a NYSERDA Eligible Installer and is eligible to receive the NYSERDA incentive rebate as shown above pursuant to NYSERDA PON-21l2. Customer is an electric distribution customer of a local electric provider who contributes to the Renewable Portfolio Standard/System Benefits Charge. Any and all incentive amounts received from the NYSERDA PON-21 l2 Solar PV Program will be applied in its entirety to Owner's system cost. 14. Termination: In the event that (i) Installer fails to submit a completed Incentive Application to NYSERDA, (ii) the Incentive Application is not approved by NYSERDA, (iii) the NYSERDA Incentive received by Installer is less than the amounts provided in Section 5 hereof, or (iv) the structural framing of the Installation Location's building does not support the installation of solar panels and ballasts, Owner or Installer may, prior to the start of the installation and at its sole discretion, terminate this Agreement without penalty and any payments made by Owner or Installer will be refunded less any reasonable fees and expenses. The parties agree that Owner or Installer may terminate this Agreement with no liability in the event that the local electrical utility denies acceptance of the System's interconnection due to area network restrictions. Customer agrees to use commercially reasonable efforts to assist Owner and installer in entering into a metering agreement with the local electrical utility. 15. System Warranty W0367v9 Installer warrants the full System for five (5) years to Owner and Customer (the "System Warranty"), which shall commence upon the completed installation of the System and receipt of NYSERDA's final approval. Installer warrants that the System (i) has been installed in accordance with prudent industry standards and this Agreement, (ii) shall be free from defects in design, materials and workmanship under normal operating conditions, and (iii) at the time of completion, the System shall be in material compliance with applicable law. The System Warranty covers all components of the System against breakdown or degradation in electrical output of more than ten (10) percent from their original rated electrical output. The System Warranty is limited to repair or replacement of defective components or sub -systems of the System by Installer or its subcontractor. The System Warranty is limited to the actual System installed by and work performed by Installer and its subcontractors. This System Warranty does not cover intentional or accidental damage, malfunctions or service failures caused by (i) the failure of Owner or Customer to operate and maintain the System in accordance with manufacturer's warranties and prudent industry standards, or (ii) acts of God, floods, storms, lightning, fires, or actions by any federal, state, or local governmental authority. Owner and Customer agree to maintain the System in proper operating condition in accordance with manufacturer's warranties, as provided by Installer, and prudent industry standards. Owner and Customer shall report any malfunction as soon as it is noticed to Installer. 16. Insurance: Installer represents that it has purchased and has kept in force commercial general liability insurance, commercial automobile liability insurance and workers compensation insurance. Installer will provide evidence of this insurance to Owner or Customer upon request. 17. Environmental Attributes: Customer, Owner and Installer acknowledge and agree that Owner will retain ownership of all Environmental Attribute(s), as defined in Section 5 of the Equipment Lease, subject to NYSERDA's interest in any REC associated with the System's energy production. 18. Data Monitoring and Reporting: Customer agrees to take readings measuring the energy generation by the System every six (6) months for the first three (3) years of the System's operation. All such readings and measurements taken pursuant to this Section shall be delivered to Installer in order to be submitted to NYSERDA. Notwithstanding the foregoing, the Parties may agree that either Owner or Installer is responsible for taking such readings or measurements. 19. Access to the System: Owner and Customer each agree that it will provide (i) NYSERDA or its representative with reasonable access to the System for inspection purposes, provided that NYSERDA shall provide Owner and Customer with three (3) days written notice of such inspection, and (h) Installer or its representatives with reasonable access to the System in order to for Installer to 1"02679 conduct inspections and/or System maintenance during the 5 year warranty period. 20. Customer Acknowledgments: In connection with the installation of the System, Customer acknowledges and agrees as follows: (i) NYSERDA and its representatives are permitted reasonable access to the System for inspection purposes and Owner and Installer are permitted reasonable access to the System for inspection and maintenance purposes, pursuant to the limitations set forth in Section 18; (ii) Customer shall be responsible for any costs associated with bringing any building or structure that the System will be installed on at the Installation Location up to code in order to pass building and electrical inspections and obtain necessary permits and for any costs associated with structure upgrades required, as determined by Installer, to support the System; (iii) NYSERDA will hold the title to any Renewable Energy Credit ("REC") associated with the System's energy production for three (3) years from the date of System operation, pursuant to the terms of the NYSERDA PON-2112 Solar PV Program; (iv) Customer shall enter into the Equipment Lease with Owner; and (v) Installer has permission to take images (including motion picture or still photographers) of the System at the Installation Location for any purposes, including advertising, promotion and marketing. 21. NYSERDA Terms and Conditions: NYSERDA's website www.00wematurallv.org contains information on NYSERDA and the funding program under which support for this System will be requested. Customer and Owner understand that neither NYSERDA nor the State of New York: (1) endorse any Eligible Installer, or (2) guaranty, warranty, or in any way represent or assume liability for any work proposed or carried out by an Eligible Installer. Additionally, NYSERDA is not responsible for assuring that the design, engineering and construction of the project or installation of any the System is proper or complies with any particular laws, regulations, codes, licensing, certification and permit requirements, or industry standards. NYSERDA does not make any representations of any kind regarding the results to be achieved by the System or the adequacy or safety of such measures. NYSERDA will not make any payment of the incentive rebate to Installer without proofs that all required permits and approvals have been obtained. The Parties agree to collaborate with NYSERDA's Director of Communications should s/he prepare any press release or plan any news conference related to the System and authorize NYSERDA to use System photographs in brochures, on its website and in other print materials. 22. Governing Law: I W2ers This Agreement is governed by the laws of the State of New York, notwithstanding choice of law provisions, and any disputes arising under this Agreement shall be venued in Erie County, New York. 23. Notices Any written notice under this Agreement shall be deemed to have been given when actually delivered. Any such written notice may be delivered personally, or deposited with a nationally recognized overnight courier service or in the United States mail, postage prepaid, addressed to recipient at the following address, or at such other address as the applicable party may request in writing: If to Installer: If to Owner Solar Liberty Energy Systems, Inc. Solar Liberty Electric Company, Inc. 6500 Sheridan Dr. Suite 120 6500 Sheridan Dr. Suite 120 Buffalo, NY 14221 Buffalo, NY 14221 Phone: 716-634-3780 Phone: 716-634-3780 Email: Nathan@soluliberty.com Email: AKRizzo@solarliberty.com If to Customer: Mailing Address: City of Ithaca Controllers Office 108 E Green St. Ithaca, NY 14850 Phone:(607)274-6570 Email: dbelmaker@cityofithaca.org 24. Entire Agreement; Modifications: This Agreement and the Lease and NYSERDA's Addendum to Customer Purchase Agreement attached hereto as Exhibit A CNYSERDA Addendum"), is the entire agreement between the Parties and supersedes all other oral and written communications and representations. In the event of a conflict between terms of this Agreement (including any and all attachments hereto and amendments thereof) and the terms of the NYSERDA Addendum, the terns of the NYSERDA Addendum shall control. Customer may, but is not required to, consult an attorney prior to entry into this Agreement or the Lease. This Agreement shall bind the respective parties hereto, their successors, legal representatives and assigns. Modifications to this Agreement most be made in writing and signed by all parties. 14 2670 25. Assignment: This Agreement shall be binding upon and shall inure to the benefit of, and shall be enforceable by, the Parties and their respective successors and assigns as permitted by and in accordance with the terms hereof. Installer may not assign this Agreement without the consent of Owner. Owner may assign its interest in this Agreement and sell or grant a security interest in all or any part of the System without notice to or the consent of Customer. In the event of a change in ownership or title of the Installation Location, Customer may assign this Agreement, upon notice to Installer and Owner to the new owner of the Installation Location, provided that such new owner assumes this Agreement and the Lease Agreement in writing and customer shall reimburse Owner for any loss of Environmental Financial Incentives or Environmental Attributes. 26. Counterparts: This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any signature page of any such counterpart, or any electronic or facsimile thereof, may be attached or appended to any other counterpart to complete a fully executed counterpart of this Agreement, and any telecopy, .pdf-format or other facsimile transmission of any signature of a party hereto shall be deemed an original and shall bind such party. [Signature Page Follows] 14 02670 This Agreement entered into this the INSTALLER: Solar Liberty Energy Systems, Inc. By: Nathan T. Rizzo IK@6M day of 20 OWNER: Solar Liberty Electric Company, Inc By: Adam K. Rizzo Its: CUSTOMER: City of Ithaca By: [Print Name] Its: EXHIBIT A NYSERDA Addendum [Insert provisions] 1"Q670 PON 2112 Incentive Application Form Attachment B INCENTIVE APPLICATION FORM Name of Eligible Installer/Installer Number: Nathan Rizzo/4116 Eligible Installer Email: Nithan@solazliberty.com Name of Company: Solar Liberty Energy Systems, Inc. Eligible Instal let Phone: 716-634-3780 Owner Name: City of Ithaca Fire Department Owner Phone Number: (607) 274-6570 Installation Address: 310 W Green St. City: Ithaca Sam, NY Zip: 14850 Mailing Address (if different from installation Address: City: Sure: Zip: Owner Email: dbelmeker@cityofithaca.org Utility Service Territory: NYSEG Expected Date of Installation: January I, 2013 Expected Dale of Interconnection January 10, 2013 Plcase attach pmof of payment by customer imo Renewable Portfolio Standard (as shown on utility bill or letter fiom utility) Building or Customer type Check all that apply: _New Construction _Existing Home _Commercial _Single Family 24 Family Residential Multif ily _Agricultural _Industrial Educational Not For Profit x Municipality/Govemmcnt Other Required System Documentation - Each Incentive Application must include as attachments: site map, shading analysis, three -line electrical drawing, and uli lily bill. PV Panel Manufacturer: REC Solar Model: REC 230 PE -US Number of Panels: 108 PV Panel Manufacturer: Model: Number of Panels: Invader Manufachaer: PVPowemd Model: PVP30kW Number oriuseners I Inverter Manufacturer: Mode[: Numberoflnvedets Inverter Efficiency: 96.0% Orientation: 180 Tilt: 10 Total System Production kW (DC at STC): 24.84 Total System Production AC: 20943.36 Customer's Annual Electric Usage (kWh): 228240 Expected Annual kWh Produced by System: 26555 Annual Electrical Offset Associated with the PV System: IL63% (Must Not Be Greater Than I10%) Total Cost Before Incentive: S161,460.00 Incetnive Tand: $37,260.00 Incentive Calculation: 37260 Estimated Annual losses from shading: 0 kWh 0.00% Estimated Annual losses farm orientation, till, ate.: 959 kWh 3.60% Estimated Annual losses from shading & orientation: 959 kWh Does total Square Image of PV army exceed 4,000 square feet 3.60 No If Batteries are a part of this System. What is their capacity: No PON 2112 Incentive Application Form Attachment B Clipboard Audit: The Company/installer agrees to complete a clipboard audit consisting of two main components: aninterviewofthe home/building owners to ascertain energy use habits and the age of the building, and an inspection of the building to identify potential energy efficiency measures, especially low and no cost measures that could reduce the electricity load of the building. This would include as inspection of the bond wired lighting systems and fmac m iding light fixtures, appliance ages and whether they are ENERGY STAR, the presence of advanced power stops for consumer electronics, existence of -vampire loads related to consumer elecuonies and battery chargers, use of pro,ra mnble thermostats or timers for air conditioners, age and condition of the doors and windows, and inquines to the owner regarding any recent installation of insulation. The PV installer would conclude the audit with a homeowner debriefing. The installer would leave a copy of the inspection form with the owner at the end oftbe inspection. The form will include description of the home, recommendations of changes to reduce electric consumption, and any fixes the homeowner can do. The installer will also leave a list of Home Performance Contractors that could install more complex energy efficiency measures, informational brachums informing the owner of the details of utility or NYSERDA energy efficiency programs available to home owner, and a brochure of low cog/no cost tips for reducing energy consumption. The inspection should last no more than 60 minutes. (initial to acknowledge requirement and adherence) Non residential Energy Management: The Company/ Installer will provide non-residential building owners with information on Energy Sire's Portfolio Manager Renchmarking Tool or other equivalent ool and, ifoo,ested by the building owner, assist them to enter utility bill information into the Tool in order to produce an EUI (Energy use index)b and, where applicable an Energy Slav score. The installers should also Provide informational brochures on NYSRRDA and utility energy efficiency programs. Customers will not be inquired to benchmark or implement energy efficiency measures as a pre- requisite to receive a PV incentive. (initial to acknowledge REQUIRED APPLICATION DOCUMENTATION: Each Incentive Application must include all documentation listed on the attached checklist. If batteries are pan of this system, what is their capacity? CERTIFICATION STATEMENT: I certify that all information provided in this application, including workshects, analysis, permits and approvals is true and correct to the best ofmy knowledge. Installer Siganlum. Dam Print Name _Nathan Print Name Nathan Print Internal Use Only : Received by NYSERDA feted Form and All Required Attachment, _Yes _No Approved Denied Date: PON 2112- Solar PV Program Attachment E ADDENDUM to the CUSTOMER PURCHASE AGREEMENT All Customer Purchase Agreements most include an executed copy of this Addendum to be eligible to apply for Solar PV Program Incentives. The Eligible Installer is identified as "Installer", the Customer or Owner is identified by "Customer", and the Eligible Installer's Affiliated Entity is identified as the "Company". Solar PV Program Incentives are only available for the installation of new equipment and PV Systems that have not been installed (partially or completely) prior to NYSERDA approval of the Incentive Application. Incentives will not be provided directly to the Customers but are paid to the NYSERDA Eligible Installer, who most then apply the entire approved amount to the Customers system cost. The Final Invoice Checklist, completed and signed by the Installer and Customer at the time of commissioning, must accompany the Final Incentive Payment Form submission. Review of System Design NYSERDA will review the design of the PV System considering issues including, but not limited to, system layout, orientation, shading, expected output, etc. NYSERDA approval of the Incentive Application is contingent on adherence to the proposed system design. Installers must receive approval from NYSERDA for any material modification of the proposed system or its components, or the incentive may be revoked. AB potential system output losses (after all equipment loses are applied) associated with shading, system orientation, tilt angle, etc. may not exceed 20% of optimal system output to receive the full incentive. Such losses must be detailed in each application package using industry accepted shading and orientation tools, verifiable assumptions and calculations. System with losses greater than 20% of optimal output due to shading and orientation issues may be considered on a case -by -case basis. However, any available incentives for these systems will be prorated by output loss. In cases where trees or any other obstruction must be removed or moved in order to meet the program rules, incentive payments will not be made until the obstructions are removed and a new shading analysis and photos have been submitted and reviewed by NYSERDA. Any trees or obstructions most be clearly labeled in the site map. Qualified Customers: Incentives are available to electricity distribution customers of Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, Niagara Mohawk Power Corporation, Orange and Rockland Utilities, Inc. and Rochester Gas and Electric Corporation who contribute to the Renewable Portfolio Standard/System Benefits Charge (sometimes referred to as "RPS/SBC" as a line item on bills). Warranty: Both the Eligible Installer and the Affiliated Entity shall offer a full transferable warranty to the purchaser of the PV System installed under this Customer Purchase Agreement for a period of (5) years after the Eligible Installer has completed the installation and NYSERDA's final approval has been provided. This warranty covers all components of the system against breakdown or degradation in electrical output of more than ten percent from their original rated electrical output.This warranty covers the full costs including labor and repair or replacement of defective components or systems. If a battery back-up is installed under this Agreement, the Eligible Installer and the Affiliated Entity shall offer a full warranty to the purchaser for the battery system for a period of 2-years after installation. This warranty covers the battery system against breakdown and covers the full costs. Title to Renewable Energy Credits: Renewable Energy Credits (RECs), which may also be referred to as green power attributes or tradable renewable credits (TRCs), are the environmental benefits associated with electricity that is generated from renewable sources such as wind or solar. PON 2112 Incentive Application Form Attachment E Funding from New York State's Renewable Portfolio Standard (PPS) contributed to develop the PV System identified in this Customer Purchase Agreement. The parties acknowledge that for the first three years of operation of the PV System funded under this program, NYSERDA will hold title to the RECS. Data Monitoring and Reporting: For a period of three years, the Installer Customer (Please designate and ini(ial) must take readings measuring the energy generation of the PV System every six months. For systems 25 k W and higher meter readings must be taken monthly and reported to NYSERDA every six months for the three year monitoring period. While the customer may be responsible for taking meter readings, all meter readings must be submitted to NYSERDA by the Eligible Installer. Quality Control: For quality control purposes, Customer must provide NYSERDA or its representative with reasonable access to the PV System for inspection purposes. Final incentive payments may be contingent on NYSERDA inpection of the installed PV System. Publicity and Site Events: Customers and Installers are required to collaborate with NYSERDA's Director of Communications should they prepare any press release or plan any news conference related to the PV System. NYSERDA is authorized to use the PV System photographs in brochures, on its website, and in other print materials. Tax Incentives: Customers are encourages to consult the IRS (see www.irs.gov), the NYS Dept. of Taxation and Finance (see www.tax.statc.ny.us) and with an accountant/tax advisor for details on eligibility for the credit provided in the law, regardless ofwhether the Installer has provided information regarding the expected tax benefits (real property, federal or state tax incentives, or sales and use tax exemptions). Cost Estimate/Total System Price: The Customer has relied upon the Company/Installer to include any and all costs associated with the complete installation of the proposed PV System in the Customer Purchase Agreement. If additional costs are sought from the Customer, the Customer Purchase Agreement may be cancelled without penalty and the customer may seek a full refund of any deposit paid to the Company/Installer or costs the Customer incurred under this Agreement, less any reasonable site visit fees charged by the Company/Installer. Incentive Estimate: If the Installer does not submit a completed Incentive Application to NYSERDA, or if the Incentive Application (a) is not approved by NYSERDA or (b) if NYSERDA approved a lower incentive, the Customer may terminate this Customer Purchase Agreement without penalty and seek a full refund of any deposit paid to Installer or costs he or she incurred under this Customer Purchase Agreement, less any reasonable site visit fees charged by the Company/Installer. PV System completion/commissioning: The Company/Installer agrees to complete the installation of th PV System, and request necessary inspections, within 120 days of NYSERDA's approval to the Incentive Application. Unless written approval of an extension has been issued by NYSERDA, the Company/Installer will be required to return any and all incentive payments to NYSERDA if this milestone has not been met. Clipboard Audit: The Company/Insmller agrees to complete a clipboard Audit consisting of two main components: an interview of the home owners to ascertain energy use habits and the age of the building, and an inspection of the building to identify potential energy efficient measures, especially low and no cost measures that could reduce the electricity load of the building. This would include an inspection of the hard -wired lighting systems and free-standing light fixtures, appliance ages and whether they are ENERGY STAR, the presence of advanced power strips for constumer electronives, existence of "vampire loads" related to consumer electronics and battery chargers, use of programmable thermostats or timers for air conditioners, age and condition of the doors and windows, and inquiries to the owner regarding any recent installation of insullation. The PV installer would conclude the audit with a home owner debriefing. PON 2112 Incentive Application Form Attachment E The installer would leave a copy of the inspection form with the owner at the end of the inspection. The form will include a description of the home, recommendations of changes to reduce electric consumption, and easy fixes the homeowner can do. The installer will also leave a list of Home Performance Contractors that could install more complex, energy efficiency measures, informational brochures informing the owner of the details of utility or NYSERDA energy efficiency programs available to home owner, and a brochure of low cost/no cost tips for reducing energy consumption. The should last no longer than 60 minutes. Customers will not be required to implement energy efficiency measures as a pre -requisite of receiving a PV incentive. Non Residential Energy Assessment: The Company/Installer will provide non-residential budding owners with information on Energy Star's Portfolio Manager Benchmarking Tool or other equivalent tool and, if requested by the building owner, assist them to enter utility bill information into the Tool in order to produce an EUI (energy use index) and, where applicable an Energy Star score. The installers shoudl also provide informational brochures on NYSERDA and utility energy efficiency programs. Customers will not be required to benchmark or implement energy efficiency measures as a pre -requisite for receiving a PV incentive. Consumer Information: New York consumers and cutomers me encouraged to consult the New York State Office of the Attorney General website for consumer information: http://Ww .ag.ny.govibureaus/consumerfrauds/tips/home_improvements.html The NYS Cosumer Pmtection Board offers additional information with_ the following publications: hap://www.nyconsumers.gov/pdf/home_impmvement brochure.pdf Conflicting Terms: In the event of a conflict between the terms of the Cutomer Purchase Agreement (including any and all attachments thereto and amendments thereof) and the terms of this Addendum, the terms of this Addendum shall control. Communication with Customer: Installer, Company and Customer agree that NYSERDA may, at NYSERDA's discretion, communicate by voice and/or written format with any PV System Customer with respecmo any matter relevant to a proposed or installed PV System. Such communications may he in reply to an inquiry from a Customer or at NYSERDA's initiation. Disclaimer: The Customer understands that neither NYSERDA nor the State of New York: (1) endorse any Eligible Installer, or (2) guaranty, warranty, or in any way represent or assume liability for any work proposed or carried out by an Eligibile Installer. Additionally, NYSERDA is not responsible for assuring that the design, engineering and construction of the project or installation of any solar electric generation system is proper or complies with any particular laws, regulations, codes, licensing, certification and permit requirments, or industry standards. NYSERDA does not make any representations of any kind regarding the results to be achieved by the solar generation systems of the adequacy or safety of such measures. Certification Statement: By signing, all parties certify that they have read and understand the above information and requirements and agree to abide by them. NYSERDA will not accept an application from an Installer if the date of the signed contract is over 30 days prior. PON 2112 Incentive Application Form Attachment E Customer: By signing below, the customer certified that he or she contributes to the Renewable Portfolio Standard (RPS)/ System Benefits Charge (SBC) through a monthly electric utility bill. Please email NYSERDA at PVQnyserda.org regarding any questions, or to check the status of your application. Customer Signature: Date: Print Name: Eligible Installer: Bt Signing below, the Installer certifies that he or she is: (1) Eligible to participate in NYSERDA's Incentive Program; (2) in compliance with Terns and Conditions of NYSERDA's program; and (3) is bound by the Terns and Conditions of this Customer Purchase Agreement. Eligible Installer Signature: Date: Print Name: Nathan Rivo Affiliated Entity: By signing below, the Authorized Representative of the Eligibile Installer's Affiliated Entity (Company) certifies that the Eligible Installer is working for said company and is in compliance with NYSERDA's Incentive Program. By signing below, the Company is bound by the Terms and Conditions of this Customer Purchase Agreement. Authorized Company Signature: Date: Print Name: Nathan Riao Solar Liberty Lease Program Your Savings Summary Organization: Ithaca Youth Bureau Installation Address: 1 James L. Gibbs Dr., Ithaca, NY 14850 Congratulationsl Your building is a good candidate for a solar energy system. Solar Liberty offersto install a 25kW solar panel system on your building that is guaranteed to save you money on your electrical costs. All of the electricity produced by the system is yours for a low lease fee of $125 per month locked in for 15 years. $10,000 Current Electrical Costs $9'000 $8,000 153,840 Current yearly electrical usage(kWh) $71000 $0.06 Your current cost per kWh purchased $6'000 $9,230 Current yearly electrical bills $5'000 $4,000 $3,000 $2,000 $1,000 Solar Production with Leased System $o 26,485 Solar electricity production (kWh) $1,589 Value of electricity produced $1,500 New lease payments $7,641 New yearly electrical bills $9,141 New electrical costs with solar $89 Your Savings With Solari 17.22% Electric Offset SOLMLIBERTY THE FUTURE OF ENERGY INDEPENDENCE t;WShmoLm t�nn Swa qp BLIW,,NY CVT I Mr, ell PFNPN 1196 1411 111-P .n0 Purchased from Solar Liberty Lease Utility Before Solar plus Utility ■Utility Cost ■Lease Payment oSolar Savings Savings Guarantee: Solar Liberty guarantees that the lease payments for any annual lease period (12 months) will be less than the amount paid to the utility company in the 12 months prior to signing the lease agreement. If the lease payments are not less than the utility savings, Solar Liberty will refund the difference. Solar Liberty Electric Company Solar Equipment Lease EOnimnem L. No.m 296 dald as No., unAAndres, of ass, Nwneund AW., (Lessar.- CkyofDAam Sob, LMaly EleeOle ComOnny, Gn con.11—Ogee 6SOU S6en0an Dr. Sake 120 108 £ Gran S6 S Pdo, NY 14221 F.QUIPMENTI)ESCRIPTION AND SITE PLAN: SEESCHEOULEA ATTACHED HERETO. Af(a Laree ri)ma Oda,.eond.nsveat. boriza lesewe,m,anv mirtnng infomrolionwehanRea. oaurole in/urmu4m (walr Oa' Ibeserial numAnfrna mrdnle) inm the Equi/vnrm Des[n0lion. /noe L f./AM., ..— SUMMARY OF PAYMENT TERMS Tmm Montbal: 180Momba Total Con: SW00.00 Payment Frequency: Monthly Tuml Ne Sy osn Can: 5134200D0 (as set tooth in Ibe bind column orSectian 610 Ule losellwion AB .U. Basic Rental Paymeln: See Schadule Bplas aOPlicebk sales anJ Numbr,orWmllmen.: ISO u1u Security Do,osit. SO.00 CmoR Dole: I/ILWH6 Lease Cam ere Dore is mlmmW 1. be mi orbeforelenuary I. 1013 and sM1ell..u, We Pesato orli11c Imm IMdlerm Owns Pursumt 1a be Innell.ion Agramem bew.1he imnio le i.uM Solor Libep Enos, Sysic , Ire. oxeatW vonlompvmmeesly hu i1h WmrdbtlonA THE TERMS ON ME FOLLOWING PAGES, SCHEDULES AND E)VHIBfTS ATTACHED HERETO. LBddns: Ctlyolllhaca LesSoc Salerliberty EleclsiC Cwnpany, lnc. Sr. Adam K. Rlem vpe r aIv I. LEASE. Lessor hereby agrees to lease to Leases am Lessee hereby agrees 10 lease firm Lmwq the personal property Axnbed on Schedule A la his Sold F,quilenond Lase the "Laeee") an Ihe lams and conditions sea forte nation (such Property hgsther with all replacements, mbmlolime, party, impmv meats, npeirs, and accnscries and all additions inmrpomfd therein or affixed theme being referralto herein i s the "Equipment"). Lessee's execmion of dM1is Lease shell obligate Lesseo m Icase fe Egdpmrnl fmm Lar. This La shall trot bo binding on Lar unless and until executed by Lessor. Anphing to,he commry ndwithnlmding, Lassot shall have no obligation to accept caeewe or enter into this Lease or to acquire or (ease to Lnsar the Equipment. Title to the Equipment shall at all limes remain in Lesor during the It. urge, Lease. I. SAVINGS GUARANTY. Leswr ogres that the Basic Rental Payments far any annual learn Had (manlhe 1-I2) paid by Leave will nut exceed the LeseeeS Disturb, Utnity payment law Wlimade Utility Psyment" shall be the sum of the total of wmants peed by Lessee to Its electric eec c utility providfor dricity, including any and all related rates, charges, surcharges ea fen ad penalties for the twelve HO month period immminch, preceding the Lease Commencement Date The Lessor agrees het if he Basic Be..[ Paymem far any ..hot lease parked exceeds the Historic Utility Payment, Lessor will pas Laved an ant equal to the difference between the Hmaric Utility Payment and the Busks Rental Payment for such ...out la period L. agrees that the promblam sal forth In this I'magmoh ]shall be subjeet to Lower', provision of documentation confirming its Ristarie Utility Payment to he satbDmo. orl.mmr. 3. TERM. The "Lease Commencement Date far this Lease shall be 1M dine se, fooh below Lessou's simmrue harem end the Lease shall continue for the Indiol term set foam above unless earlier terminated by Lessor as provided herein. Al the expiration of the Initial To.. unless Low- shall have renewed or purchased the Equipment farm Lessor pursuant to transport, 16 or rdumed the Fragment to Lessm in accordance with Paragraph 17. a. RENT. (a) Lesce shall lay as monthly bait rein to, he Initial Term of this Leave the meant shown on the red page of this Love aal as act path o. Schedule B hemo ("Basic Rental Palantir' I. provided the the aggregare Basic Rem Payment paid by he Lessee during ghe Tam shell be lass than the fowl Nm Systan Cam as sa fmh f the Sunmery of Peymmt Tas above. The nasic Rental payment shall be payable in installments in th...unat and on tee dates pmvuial in Schedule B af,his Lester. plus rey applicable sales and use tax theories; pmvirkd how aver, tMt Lessor and Leasre may agree to any other payment adwdule, in which event Schedule B shall be amend m by Laser m renrel the new poymem schedule upon vemen notice fmm Lessor to Lance. 5. ENVIRONMENTAL. FINANCIAL. INCENTIVES AND ENVIRONMENTAL ATTRIBUTES. All Environmental Financial Incentive and Environmental Attribute available in correction with the Equipment other than three specifically assigned to NYSERDA Pursuant w the Installation Agrdment arc retained and owned by Lessor. Lance shall take all ....able measure to game I rsor in morning all Envimnmrnlal Financial Incentives currently available or subsequently made available in connection with the Equipmml. IfL.ew fails In act in gaud faith in taking actions reasonably remnted by Lessor, am such failure results in the low ofee Environmental Financial Inesnaivc the, would othenwiae be available, Lmeas shall reimburse Leeson for the pull commit of such last Environmental Financial Incentive. For persons of this Lease (i) "Emilrvvmental Flna.cinl Iviceutive. mean ,he following financial removes that arc in effes as of the Lease Commencement Date or may more into effect in he future: (I) fedeul stater local Ira credits (including imoo mms ten credits mining unddihe Inremal Revenue Code and grams in lieu thereof, he, tax benefit or goods in lieu thereof (including without limitation the monin adlou of sax bendtsh and Ud all reporting rights with repeal alp such ina tive:and(it)'Environmental Modesto" mum, without Improper: (I) durable renewable rxrtifcates, green-e tags, allowances. reductions or other transrmble indtcia cooling carbon offer credits or indicating Surmount of a particular quantity ofinergy from a renewable energy, source by a rearward. energy facilily mtibeed m the energy created by the Equipmcal during she Term crmom under a renewable energy. emission reduction, mother reporting program adopted by a governmental authority, or for which a regerry and a modest exists or for which a market may .ier al a !amen dime (ii) performance -bawl inrenliv., reed. end any other incentives under any utility's or any swm's solar progam Or initiative, and any other incentive, cotificale, subsidy, award gam or cconanic benef, howsoever named or referred lie, with reelect to any and all fuel, emissions, air quality, energy gencutfn, r other mvimrmemal or rnagy chuvetere ics. resulting firm dive consdnetion m operation offic Equipment or from the use or solar geneatim or the...& re orue emi.im of any gal, chemieal or ,he, substance into the air, soil or ward anribumble m he sale of centgy gen me al by he Equipment (other than Environmental Financial Incentive). All contends relator to the sale of Environmental Air later, shell be collaeeraily assigned by Lasso to Lnsar in acmNence with limsoomem 6. If wassam bly raqu.ral by Lesor, Lease. shell provide L.sd will dkmavledgemenn I. ,he coumemmies Ice such renames, acknowledging the collateral assignment of such realrem and Lester, rights la such contracts. 6. GRANT OF SECURITY INTEREST. As c.11m rel security for the payment and performance in full when due (whether at seared minority, by acceleration or otherwise) or Lessee's obligation hereunder. Lessee hereby assigns, pledges anal gran to Lessor, a comedy incur., in, and continuing lien on all of Lcxxec'a nghL title end internal (Tony) in, or and under the Iblluwim, in each case whether tangible or intangible, whenever limited and whether now named by Lessee or hereuner acquire sad whether row existing or hereafter coming I.. me. (the "Caaatml'T; (i) the Leaae's [.hold interest in the Equipment, (id.11 agreements, existing or hemfler entered into by Lessee reeding to the meramim. mainrcnnm or use and accurate, of the Eastpman, or the sale or Environmental Attribute, including without limitation, all inammments and ddcomme executed and delivered with rnpdd to such ugreemend, we the same may be amended, a ... ma sual or thetwise modified pram time an mime i. acmrdntce with he .—a thereof and this Lease (sdh ameemcnts as as emended si pplamenwd or mndified being the'P.ojeal Dommares'), including, without limitation, all rights or Less , to receive moneys due mJ to become due under or pursued to the Project Documents, including, without limioinn, those agreements indicated on Schedule C hemof, my documents evidencing Lessor's claim to the stage mbmes. subsidies, or incentives applicable to he Equipmrnt riB Enviranmenml MWbuta and the electricity generated by the Equipment, and (iv) and all proceeds mThe foregoing. When Lassec'a obligations hereunder have been paid to full, the security interests and liens granted promote or this Lame wish r.pecmo the Call..] shall wminme, ell rights gone l hereunder with r.pee,o the Collateral shall cum back w Lessee, and Lemor shall, at expense or Lexaee, execute and deliver to Lese, upon such wmination such termiodon armaments and any other relent. or wrminmiom, presumably acuseed by Lae to eff., she lermtnaimi and release of the security interests. ]. NO WARRANTIES. THE EQUIPMENT IS LEASED -AS IS, WHERE IS". LESSEE ACKNOWLEDGES THAT: LESSOR IS NOT THE MANUFACTURER OR INSTALLER OF THE EQUIPMENT NOR TIE MANUFACTURER'S AGENT NOR A DEALER THEREIN: THE EQUIPMENT IS OF A SIZE. DESIGN. CAPACITY, DESCRIPTION AND MANUFACTURE SELECTED BY LESSEE.: LESSEE IS SATISFIED THAT THE. FQUIPMIF IS SUITABLE AND FIT FOR ITS PURPOSES; AND anteawe: sabrla ayeHeresraa.a a as .tease LESSOR HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY WITH RESPECT TO THE EQUIPMENT, EXPRESS OR IMPLIED AND LESSOR SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE. THE QUALITY, CONDITION OR CAPACITY OF THE EQUIPMENT OR THE MATERIALS N THE EQUIPMENT OR WORKMANSHIP OF THE EQUIPMENT, LESSOR'S TITLE TO THE EQUIPMENT, NOR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER. LESSOR SHALL NOT BE LIABLE TO LESSEE FOR ANY LOSS DAMAGE, OR EXPENSE OF ANY KND OR NAMES CAUSED, DIRECTLY OR INDIRECTLY, BY ANY EQUIPMENT OR THE. USE OR MAINTENANCE THEREOF OR THE. FAILURE OR OPERATION THEREOF. OR THE REPAIR, SERVICE OR ADJUSTMENT THEREOF. OR BY ANY DELAY OR FAILURE TO PROVIDE ANY SUCH MAINTENANCE, REPAIRS. SERVICE OR ADJUSTMENT, OR BY AN INTERRUPTION OF SERVICE OR LOSS OF USE THEREOF OR FOR ANY LOSS OF BUSNESS HOWSOEVER CAUSED. LESSOR SHALL NOT BE LIABLE FOR DAMAGES OF ANY KIND INCLUDING ANY LIABILITY FOR CONSEQUENTIAL, INDIRECT OR PUNATIVE DAMAGES ARISING OUT OF THE USE OF OR THE INABILITY TO USE THE EQUIPMENT. No dean orunfimsss ofthe Egdpmem, or my failure on the pan of the mwmapem a, Has shipperoflhe Equipment to deliver Ise Equipment m any pan I f to Lmec sUll fclieve Laett of the obligation to Pay rent or any o,hm obligalion he=We .. Tube mtcm permitted by IM1e mwurepurer andeor vendor end provided Lance w, in default wda,M Lease, Lessor shall make available nv Less ell manufacturer wd/or veedor weannris . 1 and e m the Equipnme nod Lessee shell, and hereby is the un during s a Tomb no essen and eir irate et Lmm i note risk, cost and uudice, tram time h time. in the name of and for the m&., L of Lessor and/or Lint m their hnareaa may eppmq but without pmirma m Lessor, whatever claims and rights Lmce andlar Lessor may have against my menurwarer mrsupplia of the ryuipnml comprising rhr F.quignen,. S. COVENANTS. lot Alfireadive Covenants. Lessee shall (i) comply wish all applicable laws and tgulmons and mkei; end with IM1e mnditiam a requi MN Of ell policies of omumwe relating la the Equipment wd its we; (ii) m any and all times during bmiam hours, give, Lessor flee access, to enter upon the premises wherein the Equipment shell br Resod or used and permit Lessor to mpmt the Equipment, Hill conpaae with the Lnsor a do all things necmmy to preaerse, renew and keep in fgH I. and effect ell necessary ranrems, approvals and amhmizmims with governmental authorities and nongovernmental Persons augured in connection with this Lease and the see ordain Equipment; lie) if requmed by I.csoa chain an acknowledgment by the aowtvpany ofamy agreement related a Hostile m ramp, army Environmental Managing, of the cmllmml nshwmmt of Lesree's lights in such vgreanent; and sum) provide Lessor with thirty (30) days notice in event ofa change in marginal Lille of IM1e premsee wherein Lac Equlpmem is Imi E) NM ive Cav mesa. Lessee sMll not (i) volunurily or involwlaody warm, incur, assume or suffer m exist wy mmngege, lien. mcudty interest, pWgr or other encumbrance m amecbmem of any kind whaaoaa upon. aReclim or with aspect to Lae Equipment, the Collateral, thin Lease or any or Lessee's imrrens theawdeq (hi) pmnit die wee of any peon, association or impassion otherthan Laser Or Lessee m be Placed an [be Equipment. Hit) Pan with pacaa'shen or mg of or guru or allow to pass out of its Isuccession or central my ism of the Equipment or change ere loasdw ofIM1e Equipment or my pan LM1emf fare the edJreas shown above trial ASSIGN OR IN ANY WAY DISPOSE OF ALL OR ANY PART OF ITS RIGHTS OR OBLIGATIONS UNDER MIS LEASE. OR ENTER INTO ANY SUBLEASE OF ALL OR ANY PART OFTHE EQUIPMENT. Iv) cane the F,quipmm, to be pemenmlly taken ore of service; (vx) amend, waive or sinless my of the amend arms army project Document. or Dg assigq sell mani or in my way convey its rigAl duties m obligations under the Len, without IM1e prior written commy or the Laver, which cons., shall not be wtcssm mly withheld ordelayed. 9. TAXES. Lott shell PmmPIIY Pey when due ell sales, ere, property, evcac anJ ohm Ivan limluding. wilham IimimioR income lases collected by deduction or whhholding)and in Engineering] ag,embrin f now or hereafter imposed by any governmental body or agency upon the Equipment or ha me, prowls, ownenhip, delivery, Inning. Possession. storage. operation, momentums, ¢pain ream or other disposition origin Equipment, or fen tiding or mgmicring the Equipment, m upon the imome in Other paceeds received with raFcct to IM1e Equipment or Lease or the mouth hereunder; provided, however, cam Lessee shell not be aquhmd to pay raze, an or answermod by the net income oFLessor. Often aqucsl by Later. Lessee shall prepare and file all Na atom alemg to rota bar which Lessee is responsible hereunder which Lessee is permitted to file under the laws ofher applicable acting jgdemnion. OANDEMNITY. Lessee M1ereby agora m indemnify and hold Lmor hermlm f and egainm any end ell dolma Ian, ,abilities, damages, judgments, suits end all legal proceedings, and any and all casts and expenses in correction therewith (including attorneys' fees) easing out ofor in any manner connected with this Lease. including without limhmhan. cleans fm injury to ur death efpmons end I., damage Ica pommy, including without Ihmimtion, any claims based in negligence, growl liability in ton, environmental indemnity, or rmellcclualpmpenyinPongement Lesson shall give Lessor prompt mdce often, such claim Or liability. 11. ASSIGNMENT. Lessor may assign its hnlertal in this Lase and sell or grant a stturity musical in all or any pen of the Equipment without wlice,o or the mnaml of Levsce. Lessee agrees not m assert against any ansignm of Lessor my claim or defense Lessee may have again, Lessor. In the event are change in ownership or title of the premises wherein the Equipment is located. Lessee my mogn this Lase, upon wham notice to Lessor, in the new owner of the Pennines. provided Ihet such new owner slash names in writing to manne this Leese, and Lomas shall aginamse Laser far any Ica MEnvirmwemal Financial Incentives or Environmental Annual., 12. EQUIPMENT PERSONALTY. This Lase is and is intended to be is lease Or personal property for all Purposes. The Equipment shill remain persuwl property regardless of its atlmhemet to realty, and Lessee agrees to take such action at its capense an may be nowearmy to prevent any third parry from acquiring aery interest in IM1e Equipment as; a result of its maximum to malty. Iffalunmd by Lmor, with rapd to any sam of Equipment. Lessee will obtain and deliver to Lessor waivers of interest or lima in assessable root. sa,hsaeoy,oLmoq free all peavns daimmg my moment in the rtel pmmmy on which the Equipment is Installed or Immed. 13. USE AND MAINTENANCE. Lessee will me the Equipment with due care and for the purpne fen whim it is ime rded Lessor shall. at Lessor's vest end expense, olicome. mini n, service end repair the Equipment on good mpemting merger, repair end margin., ordinary wear and leer excepied Lessor may, at its sole d gnmetion muse a third. party operator to provide the services described in ,his Pamaama 13. All pans, madofieashmm end impmvem.a to the Equipment shall, when installed or made, Immediately remain the papeny of Lessor and pan fthe Equipment far gill purposes. 14. LOSS OR DAMAGE. Except n a result of Lessor's actions, Lessee assumes all risk ofany damage m or lass, ,hcfl mnfiscadm or destmcfn Ofthc 1wuipm.I from any cause wMumver firing the Lease Commaacmrn, Date through be end ofa, Term. Lecee shall advise Causer in writing promptly or any lot or damage to Ile Equipment and the ciremnmmees and career or..mh damage. Cqa ano ssnr UEeq FHeaaeoamny. Me -.F 15. INSURANCE. Lessee shall grain and maintain on or with rwpm m the Frogront m its own mpense (a) liability insurance ring.,,., liability for bodily injury and gameny damage, and Ed all-risk physical damage inaucanm (including without limitmion mmsua shin reds) ituunng against Ims or demngc to the Equipment in an amount net leis Nan Termination Value. Lance shall fineh Lessor with a ecnificate of insurance evideaugg the Immune, oft, policy an policies naming Lessor as anadditional insured thanader far the liability ms—,c and to loss payee fan the property damage coseri Each such It, shall be m such form am an such immers as may W satisfactory, to Lessor, shell inure Lessor's imara4 regardless of any breach or vinklimi by Lessee of any wamantis, declarations or conditions in such policies; and shall contain a chose requiring the insurer or we to Laasm a lmst 10 rays prior waives notice of (I) the mneellation ofsuch policy or (it) any amendmn, to the henna of such policy Winch omeathnmt would cane the policy no hanger 1. canfom to the paliry mluirsmenu smtal in Nis I'amnneoh 15. Lessor shell be under no duty to common the exiame. arm 10 examine any sad paliry or m advise Lessee in do event my men paliry unit rim comply wish the regairanena hereof. In the even nor Lmsm shall fail to obtain the insurance acquired Water this Pamgmph I5. Lesser may obtain issuance in secoduat with his I'marr ph sad Lesser shall be required 10 reimburse Lesson far all remomble few and expenses, including insurance premiums, in connection therewith. I6. END OF TERM. Upon expiration of the Initial Term of the Lease and, except as otherwise specifically set (ants herein. my renewal team, rid provided Into the Lease has not been ¢rminmed early and Lessee is in compliance with We Lease in all resp=a and no Event of Default ha occurred and is common, L. may upon at lent 180 days and not more than 365 days prior wriurn notice 1. Uce.. ammim sue of the following apims: (it purchase all (bat not less than all) of the Equipment for a purchase on. equal to the than Fair Mail Valueaftha Equipment. Upon such indefeasible payment. Later will transfer to Lessee, on an AS IS BASIS (free and clear of any Item mvibutabk to Lessor), all of Lessor's internal in and to the Equipment and shal I ransom ion lien an the applicable Collateral. Lessce shell pay any mica and use axes due on such transfer. Lessor shall not be required to make and may specifically dechum any representation or wormmy, as to the condition o'such Equipment and ether malmou (except that Lessor shall warrant Ihm it has conveyed whoever snared it received to the Equipment from Lattice. free and clear army liens mWbotable to Lesson). At Lessee's expose, Lesser shall primarily mecme and deliver to Lesaee such mammenm of reminmim, as remmrably may be required in order to release or monition any interior of Lessor in and a the Equipment and the Collateral and puf car such Other amtons as Lessee may reawnabhy request o effecaoo the foregoing; or (it) mnew the Lrnxe with respect to all cribs Equipment at the expiration of she Initial Team for the then Fair Market Renm1 Value of the Equipment far a tam to be agrcM upon by Las= and Lesser. "hhr Market Renal Value' of the Equipment far purposes of the procurer sentence shill be an amount rkmrmined according to the fallowing pmodme. Upon receip of i-assues notice ofelection to renew Inc Lattice. Lmsee and Lessor will anemp to same, on unt during the next 30 days, and the amount so agreed upon shall be the Fair Market Renal Value. In Me event Lessor and Lassm cannot agree on an aunt during such 30day period, than cacti pony shall choose an independent appaiser, and the two appmisas snail men determine the Fair Maher Renal Value air. Equipment an the Met, ofan ma's -humph tansanlionh um. an informed and willing Imsor and an informed and willing lease under no compulsim m lease. The Waage ofhh umounesda amined by the Iwo eppmisers sM1ell be the Fair Monet Renal Value. EecM1 patty shell pay.M1e expencw o(Ihe apgveer it eM1msa: tar (in) Mum the Equipment to Lmam m acemdance with paragraph 19 ofhere Lease. 17. RETURN OF THE EQUIPMENT. Upon the expanders ar earlier Communist.&this Leas, by Lamr(unlm Lwsce pu¢nases she Equipment pwemnr to paragraph I6). Lmm shall roam Me Equipment 1. Lesser in accordance with (i) car (it) below. (it Leaser shall Me far de de-ineallmfn and disasavnbhy and packing of the Equipment, together with if ports and piecesaM then reinstallation and commonly (including, if necessary, rtpdr and wenhaul) at it sole cost and expnue. Lass agrees to emperde with Me Lessor in all respcea in order an make arrangements with ampere to such da-matillumn and disavnnbly of the Equipment and to ounce, that all Equipment subject to me Lease shill be returned m the Leaser in a mmner coniornt with goal... indmtry Imndasts. (it) Per Lessor's transactions, L. shall sumnder the Equipment 1. Lessor installed and in use at the Equipment Location sun Sixth above, flee end clearafany righm or mcconsts of Lessee sad Lessor (or a qualified third pony satisfactory to Lesor) at operate and common the Equipment at the Equipment Location and Lessee .shot] continue to pane Lessor access rights paranoid lathe moms hermC 1R.ADDf1BONAL ACTION; EXPENSES. Lessee will pravpy execute mddklivm to Lwsar such further docurnanas and lake such further anion as Lwsar may requed in order In carry ml more eff=tivcly has intent am purpose trials Lease. Lessor and any assign= orLmm is authorized to file me or mare Uniform Commercial Code financing ammnena without he signature of Lessee or sigmd by Lwsar or any assipree of L. its a¢mmy-tit-fact far Lmm. If Lessee fails to perform or comply with any of to statements. Lessor may perform or comply with sub asomments in its own name or in Lessee's name m umaao in fact and he smorm of any paymen0 and mpemes of Lessor incurred in connection with such pM sec or cranpliance, together with marem d¢rmn at the rate provided below, shall be deemed rent payable by Lessee upon demand. 19. LATE CHARGES. If any parri whether for real or mM1erwin, is ant paid when due. Lessor may impose a ale charge of up to 5%affirm amount pss due forthcmmhrum amount pcnnimd by applicable law. iflays), Payments thereafter received shall be applied Men to delinquent installments and then to current installments. 20.DEFAULT. Each gfthc following events shall common an"Event orDPP.W" hemader:(m I cis shall fail to pay when due any installment aflame mat m otherammm under the Lease; lbl Leases shall fail to observe or perform any other agneenem to be oaervod or perrgmed by Less= hemunder and the continuance Memor for la calendar days following written noire flerta(by Lessor to Lmm; (c) Less e shill =ass doing bminws as a going concern or make an assignment for the naafis of odium; (d) Lassa shall voluntarily fits.,orhave Cited against iterpati patient or aDea ion Ibr.1 at.ton,reorgantmtignecrcy raneof debttar similar tie-ligidathehademl Radomr<ry Code or any nth=pmsem or lam federal se stemma man o y of ult mail o law, tar er any other receiver, ti In Lidance shall be Leinermd of h or of all e e eubsasocc pert of its mains; del event of d.fauh shall mar under e 1 aobligation Lm. owes y Lpresen0 on even) of or seh shall occur adunder any indebtedness commotion Lmam may now m hang an owe a any affiliate of Lmmr. cla my mpmmhmiogwmrmgmmsenmrmadebyunerincoion160 with NemericLeaseanRaccargnydmemnmorinf mian09 Fier day Lessee in connection with Lessor's epplisarion under Section IfiO3 of the American Recovery, and 0.sinvammt An of 2nW for ceaM1 Pas. ass: son, usamess—caaw,r a. -.. payments in It. Of fen aediu for he Equipment) shall the, untrue to rundm eag in any mated.] resp=l as Of the rime the .same wet dedvcred IO Lessor, or IM the Lows, foils m pmvidc Lessen with smudty interests in the Collateral and Lessee fain to remedy such dam. 21. REMEDIES. Lentos may exercise any her right of remedy available to it bylaw an by agreement, and may in any event recover the rig end dhd espeuaes ncmred byrawer Ofan Event of Udmlrotymade, the anyrele UmRnwd=.Lessor Coder an ouch the rights and remedies with rea wit m the dared an i v secured Party under the vpplimbUniform Commercial Code and swM1 addiea h rights and nmedieb to my to a secure) puny is emitlM it mnedy given in Ibis ndsforParagraph is u intended ia l e ndmive, and each shall implied cumulative but only to the extent branch of �ry to pemiir Lissome recover amounts for which would f is liable beeuch of Le ups obligations ig implied weaver by Leaser, of any bt®ch of Lessee's obligmiom hdreurWer shell mmfitum a waive of any ether bench of Castes obligotiom hereunder. 22. NOTICES. Any write= notice hereunder to Lessee or Laser shall he deemed to have been given when delivered Pdocamily or deposited with is ree.,n eel overnight mtuiasavice man the United Senses mail. pore, prepdd, addressed m racquare m its nddras set fonh m me grin page of this Lease ram emM1 other address m may be last known IY the sender. 21 NET LEASE A" UNCONDITIONAL OBLIGATION. Thu Lease u a Mandi dy me lease adl Lessee's obligation an pay nett and ammnm Payable by Lass, haeundef is unmndidmd mW irrevocable and shall be paid wdhom any abdenown. reduction, semRor defense Of., kind. 24. NON -CANCELABLE LEASE. This Lean drand be caneded or remti and except as enprnaly provided herein 25. SURVIVAL OF INDEMNITIES. L�s obligations uM r Pamamdu 9. l o rid 2l shall survive lermimtionar expimlion oflhis Lease. 26. COUNTERPARTS. These shall be but ram caun."O of this Leone and such commix do will be marked "Origirm.` To the stem her -his Lease comtitdes demol paper (es the term as defined by the Uniform Commercial Codd. a secwby intern may only be created in be Lease mmked"Odgimll' 27.NON-WAIVER. Noccurseofdmleagberweea LeswrmWLesseemwydefymumissimonthepanof Lessorin=cmisingany rights hemuMor shall Womte as a waiver of very rights of Laaor. A waiver on any one mmsim shall m1 be camtmed w a bra to err wWvcrofmyfightm remedy m any fwam occasion. This Time is and lease and a ^flnmce Inse' under Anicle 2A of the Uniform Commercial Code. To the esfem petrained by applicable law. Lersw hereby waives any and all old. and -emedide confeted an a Lmsm by Article 2A-508 brought 2A-522 of the Uniform Commecal Code. including but me limited to Leasers rights to: O cancel this Lase: (it) repudiate, this Leese (iii) reject the Equipment; (iv) revoke accemed, oflhe Equipment: (vl recoverdidimps gam Lessor for any breaches of,amnty or for any Other reaction; Tu) claim a security modest in the Equipment in Lessee's possession or mnenl for any remora (via) deduct ell or any pun of any ddmed damages resulting rmm Lesvos s deteult if any, under his Lari (.iii) accept partial delivery of the Equ,snan; Ex) "cove" by making any purchase or lease of or mmmct -o purchase or Jesse Equipm=t in mortitutan of Equipment identi bed a this Lmw; (x) recover any gcmml. Noted. incidental, or consequential damages, for any reason wha eri and (si) specific perfide ence, replevin, demme, scf,conaion. claim, delivery or the like for the Equipment identified to this Luxe To the -am, permiued by applicable law. Lance.6. hereby waives any rights wen or bereaga cmfrred by rotate or mhmwue which may require Lamr to sell, lease or otherwise use my Equipmenl in mitigation of Lessor's damages m set forth in Pamvmnh 21 or which may aferwise limit or marbly any of Ldmr- rights or remddies under Pamdvph 21. 28, REPRESENTATIONS AND AGREEMENTS. Lessee hereby represents and agrees thee (a) effective on the dam an which Lessee ax=ufes this Lease: (it ifLdwas, is, an entity, rite execution and delivery afthis Lease and the performance of Lessees obligwions hereunder have been duly authorized by all mardeary action on the part of Laaee; (it) the person signing the Lease on behalf of Lessee is duly adhodvd: (iii) all information provided by Learn to Lessor in comrcmion with this Luse u We and fonder, and (iv) this Lowe constitutes a lead. valid and beading obligation of Lessee, enfon:uble agaimt Lusec in accordance with its fears; (bl the Lease will not violate Lessees organu itional documents (if applicable) and will net violate Of result in a defuh under any agreement or other instrument binding upon Lessee; (c) Listed: (it complies wart, and will continue to comply with, all applicable environmental laws with respect to the Equipment Location, (it) u not subjcd to any cnvimnmanml liability with respect to the Equipment Locefi n. (iii) does not know of any fact, eircurnmence or c reasonably with respect to the Equipment Location that would onably be expected to result in an environmental claim; ED Losses, has provided L=aof with free. comet, and complete copies of the Pmject Documents E.) Lessee is at, end will mat become, Is v resub of Leasers execution, delivery or performance of this Leme, ml fir m regulation U) under the EPA, the Public Utility Regulatory Policies Ad of 1978 (" PURPA'7 or Public Utility holding Company Ad of 2005 C-PURCA 20( 1. each m emended. or any rcguhmans thereunder or (i) m an "tle ricel corporation.- "public utility" or the equivalent under any applicable slam law, as amended, cruder applicable law: (O Lessee is the sole owner of the Collateral (other then he EquinarmIL has good and valid title m such Collateral. including all right. title and interim dead, fid, and clear ofall lien: (g) Leseec bra "Ited fo Lessor a perf red Mr pfirmly lien on rid aecurily interest in the Collateral in which a security mosom may be mood under Article 9 oflhe New York Uniform Commercial Cade; and (h) neither Lessee, nor to Lawe's knowledge, any aUalute of the I.. (i) unrest on the OFAC SON Ling (it) are included in, caned by, controlled by. acting for or on behalf of, providing amistenec. suppor, spomorshi, or services of any kind to, or Otherwise assmided with any of the peam. or entities refined at or described in the OFAC SUN List; or (iii) M1rve conducted business with or deranged in any mareadion with any person or catty named on any of the OFAC SDN Lim to any person or =miry included in, owned by, emmalled by, aging for or on behalf of providing assistance, support, eformship, or services of any kind an. or mherwise aswemead with any or dust pemore or entities referrtW to or described in the OFAC SUN List. For Femsee SWr.ov Sesew Comedy.me Uverg purposes of this Lease, "DEAL SON List" means the list of"Specially DesignmM Natiamis and Blocked Perseus" maintained by the United Sb,m Department ofTromI, Once of Foreign Assets Consul. 29. TAX REPRESENTATIONS AND AGREEMENTS. Lex cc rcresems, wawun a and agres thaC (a) neither Lasre Isar any of its alRlimes) has claimed an will claim that Lessee is the owner of the Equipment or any portion Ihereor m thin Levee is otherwise entitled to all m any of the Environmental Financial Incentives except m authorized by the Lessor, and neither Lessee non any of its Affiliats will file any tax return or take any position the, is inconsistent with the eeounent of Lessor m the owner of the Equipment or my proton thereof. (b) Losses has not previously assigned to any other parry any puts to the Environmental Financial Incentives, sad Lass has no knowledge that any other Funny has a nghl or has claimed a right to all or my pan of the Environmmml Financial Incentives: (c) Lasre will provide m Lessor for its emotions) on a firmly basis any documentation required in supper, eligibility formal to establish the amount army grants in lieu nature credits that Lessor may claim: (c) following submission of any application by Lessor for gmnu in lieu Of tax credits. Lasre will provide to Lesser (or its distance) on a timely basis any documentation required to demrnnate that the Equipment remains eligible for the grunts and such other documents as Lessor at the United Stares D"marecnt ofthe Treasury ('Treasury') may requm: IU all information that Laaee has provided to Loeser pursuant to this Lease is or will be me and accurfe in all material mpects. and Lessee will promptly infom, Lessor if Lessee determines fin my such infommion was materially mrsamr,a or mcorred: and (g) Lessee shell ..is used deliver such other cenilimre and other due umenu and take such other onto. se may be reasonably requested by Lessor in furtherance of grams in lieu of as cmdita lhn Lessor will claim with rapcm to ,he Equipment 30. MISCELLANEOUS. This Lease and the Installation Agreement constitute the entire agreement between Lessor and Lcesce am may be modi0ed only by a match iarmmcnt signed by Laser and L. Any prevision of his Lease that is mamfammble in any jurisdiction shall, as ro such itoodidiav, he morpotive to the extent of such unenfaa®bility without invalidating the amnaining provision of this Leine, and my such unenforawbility in any jurisdiction shall and render unenforeaLle such provision in any other junsthction_ Paragraph headings art for convenience only, are not pan of this Lease and shall not be dcenod to effect line meaning or omsmuction afee, ofthe provision baser In the event there is ore than our Lessee..oil mime chap, the obligmicas ofeach shall hejoint and several. Lesor may in its sole discretion, accept a photocopy, electronically transmitted facsimile or other reproduction of this Leese (a "Counterpart") as the binding and eft time record of this Lease whether or not an ink signed copy hereof is also received by Lessor tram Lessee, provided, however. Had if Lessor accepts a Co mesTrad as the binding and ertestive,wom hirmL the Counterpart acknowledged in writing above by Lessor shall mmtitute the rmard hereof Lessee agree that such Countersuit reecived by Lamar, shall, when acknowledged in writing by Lessor, maelimm an urginal common, far the purposes of establishing the provisions thereof end shall be legally admissible under be bat evidence rule sad binding im and mnt"arceable against Lesee. If Lessor accepts a Counterpart as the binding and effective record hereof only such Counterpart acknowledged in writing above by Lessor shall be marked "Original" and to the extent that this Lease comtim,m chattel paper, a security boost may only be crated in the Lease the, bears Lessor'. ink signed acknowled,cmm, and is mocked "Oritiml"Los Lease shall in all rapeam be governed by, and command in occmdance with the mi alantive box of the aide arts. York, end be Ponies D) ago¢ that any disputes arising under this Lease shall be superheated by . judge of the caw having jurisdiction and stall be vertical in Eric Comq, New Yoh and (it) waive any right they may have to a jury,rial army claim or came of action based on or rasing our of this Lease_ TIME IS OF THE ESSENCE WITH RESPECT TO THE OBLIGATIONS OF LESSEE UNDER THIS LEASE. Vxv. m dn.'order"wo E—mwsoay, Ise -TEASE &ftduleA De.,Wt afEl il.W saeilrunnw.: 5(te Addreer l Jamn L. G,h Ue, bhoin. NY 14850 64— Size (Cnpwi➢l 24.84kW Pvrimmedyeor l ProJunion 16.483kWh S". Dn,, P!v (108) Solm Modu(er; Qy (4)lmnrcr Delivery Polnr Win orlldbutlon Purml Uulgr/(nsm(I See below Porrireplun mrd sYsrem lava V.. I e,.1r ".. Lgn, Me -.Fg Schadub a Bask Rant Schedules Month Mouthed kWhh Estimatetl Electrlg Sayin a Monthly Pont.Pt. Estimated Total Cast 25amdraos, January 1236 $74.16 125.00 -$50.84 February 1497 $89.82 :125.00 -$35.18 March 2322 $139.32 $125.00 $14.32 April 2775 $166.50 $125.00 $41.50 May 3249 $194.94 $125.00 $69.94 June 3144 $188.64 $125.00 $63.64 July 3302 $198.12 $125.00 $73.12 August 2909 $174.54 $125.00 $49.54 September 2350 $141.00 $125.00 $16.00 October 1760 $105.60 $125.00 -$19.40 November 982 $58.92 $125.00 -$66.08 December 959 $57.54 $125.00 -$67.46 26485 $1,589.10 $1,500.00 $89.10 I. Lessor shall not be liable for any delay or impairment of perfonnancc resulting in whole or in pun from Acts of God —sever, weather conditions, labor di amps ions. governments) decrees or controls. insurrections. War risks. shortages nabilityto procure or ship product or obuin permits and licenses, supplies ofroatenals. oruny other circumstances or causes beyond the nmtml oft ssor in The conduct of its business. 2. Estimated Electrical Savinp is contingent upon customer's current cost per kWh l$AWhl from the utility enmpany and is not a guaranty by Lessor. ae.ean: s.e,ue.,y . ere, -v m... S duk C P,ry O .W. lit any renewable energy Credit sales agreement; (ii) the inte=nnwion agreement; (iii) m ule wananties; and (w) Invener wanantles. wva swvswa,�mmooun� r�a.,,r. m=. tense Installation Agreement This Installation Agreement (the "Agreement"), dated as of April 4, 2012, is between Solar Liberty Energy Systems, Inc. ("Installer"), Solar Liberty Electric Company, Inc. ("Owner"), and City of Ithaca, (the "Customer"), collectively the "Parties". Installer agrees to sell and install and Owner agrees to purchase a Grid-Intertie Photovoltaic Generating System (the "System", as further described below), at the Installation Location, as defined in paragraph I below, for the consideration and upon the terms and conditions set forth herein. Upon such sale, Customer shall lease the System from Owner in accordance with the Equipment Lease Agreement, executed by and between Owner and Customer for lease of the System and executed contemporaneously herewith ("Lease"). Further, the parties hereto agree that all rights and warranties provided to Customer shall continue through the term of the Lease. L Installation Location I James L. Gibbs Dr., Ithaca, NY 14850 (Physical Address): 2. Expected Date of Installation: The later of January 1, 2013 or 180 Days of NYSERDA's approval 3. System Cost Breakdown: Photovoltaic Modules $109,792.80 Inverter $14,531.40 Mounting Racks $12,916.80 Conduit, Wires, and Material $4,843.80 Engineering $3,229.20 Installation $16,146.00 Total System Cost or Contract Price = $161,460.00 (Before NYSERDA Incentive) 4. DC Wattage for the System: 24,840 Number of PV Panels (x) Standard Rating (DC Watts Total (Nominal) DC Watts 108 230 24 840 5. NYSERDA Incentive: NYSERDA Incentive Rate x) Total System DC Watts Total NYSERDA Incentive $1.50 24,840 $37,260.00 Total: $37.260.00 IM0267w 6. System Cost After NYSERDA Incentive: Total System Cost (-) NYSERDA Incentive Total Net System Cost $161,460.00 $37,260.00 1 $124,200.00 7. Major Equipment Proposed: Brand of PV Modules REC Solar Model of PV REC 230 PE -US Modules Brand of Inverter SMA Model of Inverter SMA 5000, 8000 Brand and Model of Roof Mounted Mounting Equipment RackinR System Brand and Model of N/A Batteries 8. Estimated Annual Output: Estimated Annual Output in kWh 26,485 Owner and Customer understand that the System output is dependent upon climatic conditions which are naturally variable, and therefore the actual output of the System over any consecutive twelve (12) month period may be higher or lower than the Estimated Annual Output stated above. 9. Equipment Location: Location of Inverter and PV System Meter As Shown on Site Plan attached to the Lease "Site Plan") Location of DC Disconnect As Shown on Site Plan Location of Utility Lockable AC Disconnect As Shown on Site Plan Owner and Customer understand and agree to the appearances, locations and mountings as described above. 10. Installation of the System: System Type Net Metering Battery es/No) Moontin Type Grid Connected Yes No Roof Installer agrees to install the System on the Installation Location. Installer agrees that any equipment used for the System shall be new equipment and that any installation shall not commence prior to the approval of Installer's NYSERDA PON-2112 Solar PV Program incentive application. Except for any obligations which are explicitly and specifically set forth herein, Installer is responsible for the installation of a fully operational System for Owner, which generates and delivers energy to the point of interconnection for use by Customer. 14 26719 In connection with the installation of the System, Installer agrees as follows: (i) all work shall be completed in compliance with all building codes and other applicable laws, including the New York State Building Code and the National Electrical Code, and to the extent required by law, shall be performed by individuals duly licensed and authorized by law to perform the work; (ii) all components will be UL, or CSA, or ETL or similarly listed as required by NEC; (iii) shall, at its own expense, obtain a building permit, if required, and electrical inspections necessary for the work to be performed; (iv) in the event the System is a ground mount system or otherwise requires excavation, the Contract Price, as defined in Section 3, does not include the excavation of any excessive rock or any bedrock by Installer; (v) shall install and initiate operation of the System in compliance with all applicable distributed generation laws and ratings in effect at the time of the installation, but will have no liability for future possible changes to such laws or rulings or their affect on the operation of the system; and (vi) upon completion of the installation of the System, Installer will remove all debris accumulated by the installation and rough grade over any excavation work. Installer may at its discretion engage subcontractors to perform work hereunder, and Installer will fully pay such subcontractors and in all instances remain responsible for the proper completion of the installation of the System and compliance with this Agreement. All change orders shall be in writing and signed both by Owner and Installer, and shall be incorporated in and become a part of this Agreement. Owner and Customer understand that the System is a Grid-Intertie Photovoltaic Generating System that is required by state and utility company regulations to disconnect and shut down in the event of a utility or electric grid failure, and will not provide back-up power in the event of such a failure. 11. Payment Schedule: In consideration for Installer's installation of the System, Owner agrees to pay to Installer the system cost as further described in Section 3 (the "Contract Price"). The full Contract Price shall be paid within thirty (30) days of the System achieving substantial completion of the construction of the System so that it becomes fully operational and commences generating energy and delivering it to the point of interconnection for use by Customer. In the event that the total Contract Price is not received in accordance with the terms hereof, Installer reserves the right to lock the System in a turned off, non-functioning position, and pursue any other remedies until full payment is received. W02670 Owner has relied upon Installer to include any and all costs associated with the complete installation of the System to be included in the Contract Price. In the event that additional costs are required by Installer, Installer shall submit a written request to Owner explaining the reason for such additional costs and the additional amounts that are being sought. Installer and Owner shall make reasonable efforts to agree on a change order and revised Contract Price. If the parties are unable to come to an agreement within thirty (30) days of written notice, Installer may cancel the Agreement without penalty. Upon such cancellation, Owner shall fully refund any amounts paid by Installer, less any reasonable fees and expenses incurred by Installer. 12. Title: The Parties hereto agree that title to material, supplies, equipment and other goods covered by this Agreement will pass to Owner upon receipt by Installer of the full Contract Price. In addition, Installer will take all necessary steps to assign all manufacturers' warranties for the System to Owner. Title to all the material, supplies, and equipment incorporated or to be incorporated into the System shall be free and clear of all liens, claims, security interests or encumbrances and Installer warrants and shall defend such title, at its sole expense, against the claims of third parties. Installer shall immediately notify Owner of the assertion of any lien or encumbrance upon the System or any part thereof. 13. Eligibility to Receive NYSERDA Incentive: The parties hereto agree and acknowledge that Installer is a NYSERDA Eligible Installer and is eligible to receive the NYSERDA incentive rebate as shown above pursuant to NYSERDA PON-2112. Customer is an electric distribution customer of a local electric provider who contributes to the Renewable Portfolio Standard/System Benefits Charge. Any and all incentive amounts received from the NYSERDA PON-2112 Solar PV Program will be applied in its entirety to Owner's system cost. 14. Termination: In the event that (i) Installer fails to submit a completed Incentive Application to NYSERDA, (it) the Incentive Application is not approved by NYSERDA, (iii) the NYSERDA Incentive received by Installer is less than the amounts provided in Section 5 hereo% or (iv) the structural framing of the Installation Location's building does not support the installation of solar panels and ballasts, Owner or Installer may, prior to the start of the installation and at its sole discretion, terminate this Agreement without penalty and any payments made by Owner or Installer will be refunded less any reasonable fees and expenses. The parties agree that Owner or Installer may terminate this Agreement with no liability in the event that the local electrical utility denies acceptance of the System's interconnection due to area network restrictions. Customer agrees to use commercially reasonable efforts to assist Owner and Installer in entering into a metering agreement with the local electrical utility. 15. System Warranty: 19 0267v Installer warrants the full System for five (5) years to Owner and Customer (the "System Warranty"), which shall commence upon the completed installation of the System and receipt of NYSERDA's final approval. Installer warrants that the System (i) has been installed in accordance with prudent industry standards and this Agreement, (ii) shall be free from defects in design, materials and workmanship under normal operating conditions, and (iii) at the time of completion, the System shall be in material compliance with applicable law. The System Warranty covers all components of the System against breakdown or degradation in electrical output of more than ten (10) percent from their original rated electrical output. The System Warranty is limited to repair or replacement of defective components or sub -systems of the System by Installer or its subcontractor. The System Warranty is limited to the actual System installed by and work performed by Installer and its subcontractors. This System Warranty does not cover intentional or accidental damage, malfunctions or service failures caused by (i) the failure of Owner or Customer to operate and maintain the System in accordance with manufacturer's warranties and prudent industry standards, or (ii) acts of God, floods, storms, lightning, fires, or actions by any federal, state, or local governmental authority. Owner and Customer agree to maintain the System in proper operating condition in accordance with manufacturer's warranties, as provided by Installer, and prudent industry standards. Owner and Customer shall report any malfunction as soon as it is noticed to Installer. 16. Insurance: Installer represents that it has purchased and has kept in force commercial general liability insurance, commercial automobile liability insurance and workers compensation insurance. Installer will provide evidence of this insurance to Owner or Customer upon request. 17. Environmental Attributes: Customer, Owner and Installer acknowledge and agree that Owner will retain ownership of all Environmental Attribute(s), as defined in Section 5 of the Equipment Lease, subject to NYSERDA's interest in any REC associated with the System's energy production. 18. Data Monitoring and Reporting: Customer agrees to take readings measuring the energy generation by the System every six (6) months for the first three (3) years of the System's operation. All such readings and measurements taken pursuant to this Section shall be delivered to Installer in order to be submitted to NYSERDA. Notwithstanding the foregoing, the Parties may agree that either Owner or Installer is responsible for taking such readings or measurements. 19. Access to the System: Owner and Customer each agree that it will provide (i) NYSERDA or its representative with reasonable access to the System for inspection purposes, provided that NYSERDA shall provide Owner and Customer with three (3) days written notice of such inspection, and (ii) Installer or its representatives with reasonable access to the System in order to for Installer to 10 2670 conduct inspections and/or System maintenance during the 5 year warranty period. 20. Customer Acknowledgments: In connection with the installation of the System, Customer acknowledges and agrees as follows: (i) NYSERDA and its representatives are permitted reasonable access to the System for inspection purposes and Owner and Installer are permitted reasonable access to the System for inspection and maintenance purposes, pursuant to the limitations set forth in Section 18; (ii) Customer shall be responsible for any costs associated with bringing any building or structure that the System will be installed on at the Installation Location up to code in order to pass building and electrical inspections and obtain necessary permits and for any costs associated with structure upgrades required, as determined by Installer, to support the System; (iii) NYSERDA will hold the title to any Renewable Energy Credit (" REC") associated with the System's energy production for three (3) years from the date of System operation, pursuant to the terns of the NYSERDA PON-2112 Solar PV Program; (iv) Customer shall enter into the Equipment Lease with Owner; and (v) Installer has permission to take images (including motion picture or still photographers) of the System at the Installation Location for any purposes, including advertising, promotion and marketing. 21. NYSERDA Terms and Conditions: NYSERDA's website www.mowernatura0v.org contains information on NYSERDA and the funding program under which support for this System will be requested. Customer and Owner understand that neither NYSERDA nor the State of New York: (1) endorse any Eligible Installer, or (2) guaranty, warranty, or in any way represent or assume liability for any work proposed or carried out by an Eligible Installer. Additionally, NYSERDA is not responsible for assuring that the design, engineering and construction of the project or installation of any the System is proper or complies with any particular laws, regulations, codes, licensing, certification and permit requirements, or industry standards. NYSERDA does not make any representations of any kind regarding the results to be achieved by the System or the adequacy or safety of such measures. NYSERDA will not make any payment of the incentive rebate to Installer without proofs that all required permits and approvals have been obtained. The Parties agree to collaborate with NYSERDA's Director of Communications should s/he prepare any press release or plan any news conference related to the System and authorize NYSERDA to use System photographs in brochures, on its website and in other print materials. 22. Governing Law: IW2670 This Agreement is governed by the laws of the State of New York, notwithstanding choice of law provisions, and any disputes arising under this Agrcement shall be venued in Erie County, New York. 23. Notices Any written notice under this Agreement shall be deemed to have been given when actually delivered. Any such written notice may be delivered personally, or deposited with a nationally recognized overnight courier service or in the United States mail, postage prepaid, addressed to recipient at the following address, or at such other address as the applicable party may request in writing: If to Installer: If to Owner Solar Liberty Energy Systems, Inc. Solar Liberty Electric Company, Inc. 6500 Sheridan Dr. Suite 120 6500 Sheridan Dr. Suite 120 Buffalo, NY 14221 Buffalo, NY 14221 Phone: 716-634-3780 Phone: 716-634-3780 Email: Nathan@solarliberty.com Email: AKRiazo@solarliberty.com If to Customer: Mailing Address: City of Ithaca Controllers Office 108 E Green St. Ithaca, NY 14850 Phone:(607)274-6570 Email: dbelmaker@cityofithaca.org - 24. Entire Agreement; Modifications: This Agreement and the Lease and NYSERDA's Addendum to Customer Purchase Agreement attached hereto as Exhibit A ("NYSERDA Addendum"), is the entire agreement between the Parties and supersedes all other oral and written communications and representations. In the event of a conflict between terms of this Agreement (including any and all attachments hereto and amendments thereof) and the terms of the NYSERDA Addendum, the terns of the NYSERDA Addendum shall control. Customer may, but is not required to, consult an attorney prior to entry into this Agreement or the Lease. This Agreement shall bind the respective parties hereto, their successors, legal representatives and assigns. Modifications to this Agreement most be made in writing and signed by all parties. I0002670 25. Assignment: This Agreement shall be binding upon and shall more to the benefit of, and shall be enforceable by, the Parties and their respective successors and assigns as permitted by and in accordance with the terms hereof. Installer may not assign this Agreement without the consent of Owner. Owner may assign its interest in this Agreement and sell or grant a security interest in all or any part of the System without notice to or the consent of Customer. In the event of a change in ownership or title of the Installation Location, Customer may assign this Agreement, upon notice to Installer and Owner to the new owner of the Installation Location, provided that such new owner assumes this Agreement and the Lease Agreement in writing and customer shall reimburse Owner for any loss of Environmental Financial Incentives or Environmental Attributes. 26. Counterparts: This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any signature page of any such counterpart, or any electronic or facsimile thereof, may be attached or appended to any other counterpart to complete a fully executed counterpart of this Agreement, and any telecopy, .pdf-format or other facsimile transmission of any signature of a party hereto shall be deemed an original and shall bind such party. [Signature Page Follows] I W26h9 This Agreement entered into this the day of 20 . INSTALLER: OWNER: Solar Liberty Energy Systems, Inc. Solar Liberty Electric Company, Inc. By: Nathan T. Rizzo By: Adam K. Rizzo Its: Its: CUSTOMER: City of Ithaca By: [Print Name] wau2670 EXHIBIT A NYSERDA Addendum [Insert provisions] IW26M PON 2112 Incentive Application Form Attachment B INCENTIVE APPLICATION FORM Name of Eligible Imtaller/Installer Number: Nathan Ri=/4116 Eligible Installer Email: Nathen@sclmlibeny.com Name ofCompany: Solar Liberty Energy Systems, Inc. Eligible Installer Phone: 71W- 3780 Owner Name: City of Ithaca Youth Bureau Owner Phone Number: (607) 274-6570 Installntion Address: I lames L. Gibbs Dr. City: Ithaca State: NY Zip: 14850 Mailing Address (ifdiRerent form installation Address City: State: Zip: Owner Email: dbelmaker@cityofithaea.org Utility Service Territory: NYSEG Expected Date of Installation: January 1, 2013 Expected Date of Interconnection January 10, 2013 Please attach proofof payment by customer into Renewable Portfolio Standard (as shown can utility bill or letter form utility) Building or Customer type Check all that apply: _ New Construction _Existing Home _Commercial _Single Family _ 24 Family Residential _Mullifamily _Agricultural _Industnal _Educational _Not For Porfit x Municipality/Government _Other Required System Documentation- Each Incentive Application must include as attachments: site map, shading analysis, three -line electrical drawing, and utility bill. PV Panel Manufacturer. REC Solar Model: RFC 230 PE -US NumberofPanels: 108 PV Panel Manufacturer: Model: Number of Panels: Inverter Manufacturer: SMA Model: SMA 5". 8000 Number of lnmrUns 4 Inverter Manufacturer: Model: Number of Inverters Inverter Elficiency: 96.0a/ Orientation: 130&220 Tile 10 Total System Production kW (DC at STC): 24.84 Total System Production AC: 20943.36 Customers Annual Electric Usage (kWh): 153940 Expected Annual kWh Produced by System: 26485 Annual Electrical Offset Associated with the PV System: 17.22% (Must Not Be Greater Than 110%) Total Cost Before Incentive: $161 Incentive Calculation: 37260 Incentive Total: $37,260.00 Estimated Annual losses from shading: 0 kWh 0.00% Estimated Annual losses from orientation. tilt. etc.: 959 kWh 3.60% Estimated Annual losses from shading &orientation: 959 kWh 3.60% Does total Square footage of PV array exceed 4,000 square feet: No 1fBatteries are a pan of this System. What is their capacity: No PON 2112 Incentive Application Form Attachment B Clipboard Audit: The Company/Installer agrees to complete a clip board audit consisting of two main components: an interview ofthe home/building owners to ascertain energy use habits and the age ofthe building. and an inspection ofthe building to identify potential energy efficiency measures, especially low and no cost measures that could reduce the electricity load ofthe building. This would include an inspection ofthe herd -wired lighting systems and free standing light fixtures, appliance ages and whether they are ENERGY STAR, the presence of advanced power strips for consumer electronics, existence of "mropire loads" related to consumer electronics and battery chargers, use of programmable thermostats or timers for air conditioners, age and condition of the doors and windows, and inquiries to the owner regarding any recent installation of insulation. The PV installer would conclude the audit with a homeowner debriefing. The instal let would leave a copy of the inspection from with the owner at the and of the inspection. The form will include a description of the home, recommendations of changes to reduce electric consumption, and easy fixes the homeowner can do. The installer will also (cave a list of Home Performance Contractors that could install more complex energy efficiency measures. informational brochures importing the owner of the details of utility or NYSERDA energy efficiency programs available to home owner, and a brochure of law cost/no cost tips fro reducing energy consumption. The inspection should last no more than 60 minutes. (initial to acknowledge requirement and adherence). Non raaidential Energy Management The Company/ Installer will provide non-residential building owners with information on Energy Star's Portfolio Manager Benchrearking Tool or other equivalent too] and, ifrequested by the building owner, assist them to other utility bill information into the Tool in order to Produce an EUI (Energy use index)6 and, where applicable an Energy Star score. The installers should also provide informational bmchues on NYSERDA and utility energy efficiency programs. Customers will not be required to benchmark or implement energy efficiency measures as a pre -requisite to receive a PV incentive. (initial to acknowledge REQUIRED APPLICATION DOCUMENTATION: Each Incentive Application must include all documentation listed on the attached checklist. If ballerics an, pan alibis system, what is their rapacity? CERTIFICATION STATEMENT: I certify, that all information provided in this application, including workshects, analysis, permits and approvals is true and emrect to the best of my knowledge. In vller Signal. Print Name Nathan Rizzo Company Signature Print Name Nathan Rizzo Customer Signature Pant Name For Internal Use Only Date Received by NYSERDA Date deted Form and All Required Attachments _Yes No Approved Denied Date: PON 2112- Solar PV Program Attachment E ADDENDUM to the CUSTOMER PURCHASE AGREEMENT All Customer Purchase Agreements most include an executed copy of this Addendum to be eligible to apply for Solar PV Program Incentives. The Eligible Installer is identified as "Installer", the Customer or Owner is identified by "Customer", and the Eligible Installer's Affiliated Entity is identified as the "Company". Solar PV Program Incentives arc only available for the installation of new equipment and PV Systems that have not been installed (partially or completely) prior to NYSERDA approval of the Incentive Application. Incentives will not be provided directly to the Customers but are paid to the NYSERDA Eligible Installer, who must then apply the entire approved amount to the Customer's system cost. The Final Invoice Checklist, completed and signed by the Installer and Customer at the time of commissioning, must accompany the Final Incentive Payment Form submission. Review of System Design NYSERDA will review the design of the PV System considering issues including, but not limited to, system layout, orientation, shading, expected output, etc. NYSERDA approval of the Incentive Application is contingent on adherence to the proposed system design. Installers must receive approval from NYSERDA for any material modification of the proposed system or its components, or the incentive may be revoked. All potential system output losses (after all equipment loses are applied) associated with shading, system orientation, tilt angle, etc. may not exceed 20% of optimal system output to receive the full incentive. Such losses must be detailed in each application package using industry accepted shading and orientation tools, verifiable assumptions and calculations. System with losses greater than 209/ of optimal output due to shading and orientation issues may be considered on a case -by -case basis. However, any available incentives for these systems will be prorated by output loss. In cases where trees or any other obstruction must be removed or moved in order to meet the program mles, incentive payments will not be made until the obstructions are removed and a new shading analysis and photos have been submitted and reviewed by NYSERDA. Any trees or obstructions must be clearly labeled in the site map. Qualified Customers: Incentives arc available to electricity distribution customers of Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, Niagara Mohawk Power Corporation, Orange and Rockland Utilities, Inc. and Rochester Gas and Electric Corporation who contribute to the Renewable Portfolio Standard/System Benefits Charge (sometimes referred to as "RPS/SBC" as a line item on bills). Warranty: Both the Eligible Installer and the Affiliated Entity shall offer a full transferable warranty to the purchaser of the PV System installed under this Customer Purchase Agreement for a period of (5) years after the Eligible Installer has completed the installation and NYSERDA's final approval has been provided. This warranty coven: all components of the system against breakdown or degradation in electrical output of more than ten percent from their original rated electrical output.This warranty covers the full costs including labor and repair or replacement of defective components or systems. If a battery back-up is installed under this Agreement, the Eligible Installer and the Affiliated Entity shall offer a full warranty to the purchaser for the battery system for a period of 2-years after installation. This warranty covers the battery system against breakdown and covers the full costs. Title to Renewable Energy Credits: Renewable Energy Credits (RECs), which may also be referred to as green power attributes or tradable renewable credits (TRCs), are the environmental benefits associated with electricity that is generated from renewable sources such as wind or solar. PON 2112 Incentive Application Form Attachment E Funding from New York State's Renewable Portfolio Standard (RPS) contributed to develop the PV System identified in this Customer Purchase Agreement. The parties acknowledge that for the first three years of operation of the PV System funded under this program, NYSERDA will hold title to the RECs. Data Monitoring and Reporting: For a period of three years, the Installer Customer (Please designate and initial) must take readings measuring the energy generation of the PV System everysix momhs. For systems 25 kW and higher meter readings most be taken monthly and repotted to NYSERDA every six months for the three year monitoring period. While the customer may be responsible for taking meter readings, all meter readings must be submitted to NYSERDA by the Eligible Installer. Quality Control: For quality control purposes, Customer most provide NYSERDA or its representative with reasonable access to the PV System for inspection purposes. Final incentive payments may be contingent on NYSERDA inpection of the installed PV System. Publicity and Site Events: Customers and Installers am required to collaborate with NYSERDA's Director of Communications should they prepare any press release or plan any news conference related to the PV System. NYSERDA is authorized to use the PV System photographs in brochures, on its website, and in other print materials. Tax Incentives: Customers are encourages to consult the IRS (see www.irs.gov), the NYS Dept. of Taxation and Finance (see www.tax.statemy.us) and with an accountant/tax advisor for details on eligibility for the credit provided in the law, regardless of whether the Installer has provided information regarding the expected tax benefits (real property, federal or state tax incentives, or sales and use tax exemptions). Cost Estimate/Total System Price: The Customer has relied upon the Company/Installer to include any and all costs associated with the complete installation of the proposed PV System in the Customer Purchase Agreement If additional costs are sought from the Customer, the Customer Purchase Agreement may be cancelled without penalty and the customer may seek a full refund of any deposit paid to the Company/Installer or costs the Customer incurred under this Agreement, less any reasonable site visit fees charged by the Company/Installer. Incentive Estimate: If the Installer does not submit a completed Incentive Application to NYSERDA, or if the Incentive Application (a) is not approved by NYSERDA or (b) if NYSERDA approved a lower incentive, the Customer may terminate this Customer Purchase Agreement without penalty and seek a full refund of any deposit paid to Installer or costs he or she incurred under this Customer Purchase Agreement, less any reasonable site visit fees charged by the Company/Installer. PV System completion/commissioning: The Company/Installer agrees to complete the installation of th PV System, and request necessary inspections, within 120 days of NYSERDA's approval to the Incentive Application. Unless written approval of an extension has been issued by NYSERDA, the Company/Installer will be required to remm any and all incentive payments to NYSERDA if this milestone has not been met. Clipboard Audit: The CompanyMstaller agrees to complete a clipboard Audit consisting of two main components: an interview of the home owners to ascertain energy use habits and the age of the building, and an inspection of the building to identify potential energy efficient measures, especially low and no cost measures that could reduce the electricity load of the building. This would include an inspection of the hard -wired lighting systems and free-standing light fixtures, appliance ages and whether they are ENERGY STAR, the presence of advanced power strips for constumer electronives, existence of "vampire loads" related to consumer electronics and battery chargers, use of programmable thermostats or timers for air conditioners, age and condition of the doors and windows, and inquiries to the owner regarding any recent installation of insullation. The PV installer would conclude the audit with a home owner debriefing. PON 2112 Incentive Application Form Attachment E The installer would leave a copy of the inspection form with the owner at the end of the inspection. The form will include a description of the home, recommendations of changes to reduce electric consumption, and easy fixes the homeowner can do. The installer will also leave a list of Home Performance Contractors that could install more complex, energy efficiency measures, informational brochures informing the owner of the details of utility or NYSERDA energy efficiency programs available to home owner, and a brochure of low cost/no cost tips for reducing energy consumption. The should last no longer than 60 minutes. Customers will not be required to implement energy efficiency measures as a pre -requisite of receiving a PV incentive. Non Residential Energy Assessment. The Company/Installer will provide non-residential building owners with information on Energy Star's Portfolio Manager Benchmarking Tool or other equivalent tool and, if requested by the building owner, assist them to enter utility bill information into the Tool in order to produce an EUI (energy use index) and, where applicable an Energy Star score. The installers shoudl also provide informational brochures on NYSERDA and utility energy efficiency programs. Customers will not be required to benchmark or implement energy efficiency measures as a pre -requisite for receiving a PV incentive. Consumer Information: New York consumers and cutomers are encouraged to consult the New York State Office of the Attorney General website for consumer information: http://www.ag.ny.govlbweaus/consumer_frauds/tips/home_improvements.hlml The NYS Customer Protection Board offers additional information with the following publications: http://www.nymnsumers.gov/pdf/home improvement bmchure.pdf Conflicting Terms: In the event of a conflict between the terms of the Cutomer Purchase Agreement (including any and all attachments thereto and amendments thereof) and the terns of this Addendum, the terms of this Addendum shall control. Communication with Customer: Installer, Company and Customer agree that NYSERDA may, at NYSERDA's discretion, communicate by voice and/or written format with any PV System Customer with respectto any matter relevant to a proposed or installed PV System. Such communications may be in reply to an inquiry from a Customer or at NYSERDA's initiation. Disclaimer: The Customer understands that neither NYSERDA nor the State of New York: (1) endorse any Eligible Installer; or (2) guaranty, warranty, or in any way represent or assume liability for any work proposed or carried out by an Eligibile Installer. Additionally, NYSERDA is not responsible for assuring that the design, engineering and construction of the project or installation of any solar electric generation system is proper or complies with any particular laws, regulations, codes, licensing, certification and permit requivnents, or industry standards. NYSERDA does not make any representations of any kind regarding the results to be achieved by the solar generation systems of the adequacy or safety of such measures. Certification Statement: By signing, all parties certify that they have read and understand the above information and requirements and agree to abide by them. NYSERDA will not accept an application from an Installer if the date of the signed contract is over 30 days prior. PON 2112 Incentive Application Form Attachment E Customer: By signing below, the customer certified that he or she contributes to the Renewable Portfolio Standard (RPS)/ System Benefits Charge (SBC) through a monthly electric utility bill. Please email NYSERDA at PV Qnyserda.org regarding any questions, or to check the status of your application. Customer Signature: Date: Print Name Eligible Installer: Bt Signing below, the Installer certifies that he or she is: (1) Eligible to participate in NYSERDA's Incentive Program; (2) in compliance with Terms and Conditions of NYSERDA's program; and (3) is bound by the Terms and Conditions of this Customer Purchase Agreement. Eligible Installer Signature: Date: Print Name: Nathan Rizzo Affiliated Entity: By signing below, the Authorized Representative of the Eligibile Installer's Affiliated Entity (Company) certifies that the Eligible Installer is working for said company and is in compliance with NYSERDA's Incentive Program. By signing below, the Company is bound by the Terms and Conditions of this Customer Purchase Agreement. Authorized Company Signature: Date: Print Name: Nathan Rizzo SOIARIIBERTY March 19, 2012 Steven P. Thayer City of Ithaca 108 E. Green St. Ithaca, NY 14850 Solar Liberty 6500 Sheridan Drive, Suite 120 Buffalo, New York 14221 Re: Benchmark Audit Letter Dear Mr. Thayer, All commercial recipients of NYSERDA PON 2112 incentives must receive this information. Please review the material to determine if you will require additional assistance. Also please acknowledge receipt of this information by initializing this document below. Eligible Installers shall provide non-residential building owners with information on ENERGY STAWS Portfolio Manager Benchmarking Tool, or other equivalent tool and if requested by the building owner will help them enter utility bill information into the Tool in order to produce an EUI (Energy use index) and, where applicable an ENERGYSTAR score. Eligible Installers shall also provide informational brochures on NYSERDA and utility energy efficiency programs. Customers will not be required to benchmark or implement energy efficiency measures as a prerequisite to receiving a PV incentive. The building owner must sign acknowledging that the information was received. A copy of the signed acknowledgement must accompany the application and be uploaded into Powerclerk. The links below are to Energy Efficiency programs that are available through the EPA and NYSERDA and your local utility company. http://www.en ergystar.gov/ind ex.cfm?r-evaluate_performance. bus_portfolioma nager http://www.nyserda.org/programs/energyaudit.asp http://www.nyserda.org/programs/flextech-asp Customer Installer initial THE FUTURE OF ENERGY INDEPENDENCE' Dorporal.H.adqumbm 690 should.. DrW., S.R. 120 60.60.RENEW i736391 M aoladlbau,.uom Buffalo, NY 14221 8661018413 A. Ialc®solatllhay.com