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HomeMy WebLinkAboutSolar and Battery Storage at Landfill RESOLUTION 2020-538 ADOPTED DOC ID: 16389 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2020-538 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON AUGUST 25,2020: RESOLVED that the Town Board of the Town of Southold hereby accepts the Request for Proposal that has been submitted by Summit Ridge Energy, 100 Church Street, Suite 800,New York,NY 10007 for the Solar and Battery Storage at the Landfill submitted on July 17, 2020, all in accordance with the Town Attorney and the Town Engineer. Elizabeth A.Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Louisa P. Evans, Justice SECONDER:Robert Ghosio, Councilman AYES: Nappa,Dinizio Jr, Doherty, Ghosio, Evans, Russell i i i January ,2021 GROUND LEASE This Ground Lease(the"Lease")is made and entered into as of January 2021, (the "Effective Q t '), by and between Town of Southold (the"Landlord")and SRE Solar Origination 2,LLC, a Delaware limited liability company(the"Tenant"). WHEREAS, Landlord owns approximately 60 acres of real property located at 6155 Cox Lane, Cutchogue,NY, as more particularly described in Appendix A attached hereto(the "Pro e "); WHEREAS,Tenant wishes to conduct diligence with respect to developing,designing, installing and operating a solar-powered electric generation facility and energy storage and distribution system on the portion of the Property described in,Anne ik ff attached hereto, such portion of the Property being referred to herein as the"Lease Area"; WHEREAS, Landlord is willing to lease the Lease Area to Tenant, and Tenant is willing to lease the Lease Area from Landlord for the development, construction, operation and maintenance of a solar-powered electric generation facility and associated uses necessary or ancillary thereto; WHEREAS,Tenant desires and Landlord is,willing to grant Tenant certain easements across the Property which easements are necessary for the development,construction, operation and maintenance of a solar-powered electric generation facility on the Lease Area; NOW THEREFORE, in consideration of the premises,the covenants contained herein, and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows: SECTION 1. DEFINITIONS. Capitalized terms within this Lease shall have the meanings as set forth in the,Olossary-of Terms, attached hereto and incorporated herein. SECTION 2. LEASE. Landlord hereby leases the Lease Area to Tenant and Tenant leases the Lease Area from Landlord for the Permitted Uses for the Term. After the Development Period,Tenant shall have quiet and peaceful possession of the Lease Area for the entire Term without hindrance, interruption,or interference by Landlord or any other person or entity claiming through or under Landlord. SECTION 3. GRANT OF EASEMENTS. (a) Landlord hereby grants the following easements(the"Easdn eats")to Tenant for the following purposes,across the portions of the Property identified in Appendix C(the "Easement Parcels"): (i) A non-exclusive right of pedestrian,vehicular and equipment access to the Facility across or through the Property at all times,which is necessary or convenient for ingress and egress to the Facility including over the now existing or hereafter constructed roads, lanes, and rights of way on the Property,and such additional roads as Tenant or anyone else may construct(including rights to maintain, improve, 1 Southold Lease r ' i j I , l January��,2021 rebuild, relocate or widen the roads)from time to time on any portion of the Property approved by Landlord (which approval shall not be unreasonably withheld, conditioned or delayed), in each case for the benefit of the Facility. (ii) an exclusive right to construct,operate,maintain, reconstruct,relocate, remove,and/or repair the electric utility service infrastructure and associated wires, lines and poles and other infrastructure necessary;'and convenient, above or below ground,to interconnect the Facility to the electrical distribution system,the location of which will be determined by the local electric distribution company; and (iii) an exclusive easement, if needed, of no greater size than reasonably necessary to be located at a mutually acceptable location on the Property for temporary construction Iaydown, and other areas and access rights reasonably necessary to construct,erect, install,expand, modify or remove the Facility. Upon completion of each construction phase,said easement shall terminate.This easement will run from the Operations Period Commencement Date until the Commercial Operation Date and during the Decommissioning Period of the lease term . (iv) An exclusive right and easement to use,capture,convert,and maintain uninterrupted the free and unobstructed access to solar energy over and across the Property and,to the extent the Landlord owns and controls the adjacent properties,over and across the adjacent properties. (v) To the extent that Landlordlholds or has the right to use any access, utility,transmission, water or other easements,rights of way or licenses over lands in the general vicinity of the Property (the "Landlord Easements") on the date of this Agreement,and such Landlord Easements are being used or could be used for the benefit of the Property or Facility,then the Landlord Easements are hereby included in this Agreement,and Tenant shall be entitled to make full use of the Landlord Easements, if such use is permitted under,the Landlord Easements. Upon the request of Tenant at any time and from time to time, Landlord shall grant to Tenant(in recordable form and containing such terms and provisions as may reasonably be requested by Tenant), for no additional consideration,one or more subeasements of the Landlord Easements and the subeasements shall terminate upon the expiration or termination of this Agreement. However any and all utilization of the same shall be at the sole cost and expense of the Tenant. (b) Landlord's grant of Easements in Sections(3)(a)shall commence on the Effective Date and end upon termination of the Decommissioning Period. I SECTION 4. TERM.. (a) This Lease will consist of a Development Period, an Operations Period,and a Decommissioning Period. 3 (i) The Development Period will begin on the Effective Date and will terminate on the earliest of: 2 Southold Lease 1 January ft ,2021 f i (A) Delivery by Tenant of notice of termination in accordance with Section 4(b); (B) 550 days after the commencement of the Development Period, provided that Tenant shall have the right to extend such time for up to two (2)additional periods of six(6)months each,contingent upon Tenant providing evidence that it continues to pursue the development, financing and construction of a solar-powered electric generation project on the Lease Area,and such right to'be exercised by Tenant by delivering notice to Landlord at least thirty(30)days prior to the commencement of such additional period;or (C) the Operations Period:Commencement Date. (ii) The Operations Period will commence at 12:01 a.m. on the date,notified by Tenant to Landlord no fewer than ten(10)days in advance,on which Tenant intends to commence construction-related activities'at, or will otherwise take control over,the Lease Area(such date being referred to herein as the Operations Period Commencement Date)and will end at 11:59 p.m.on the last day of the month in which the twentieth(20th) anniversary of the Commercial Operation Date occurs. Tenant shall have the right to extend the Operations Period for two (2)periods of five(5)years each.At least ninety (90)days prior to the beginning of an extension term,Tenant shall deliver notice to Landlord of Tenant's intent to exercise the extension option,and Tenant and Landlord,at Tenant's expense,shall prepare and record any amendments to the Notice of Lease and/or any other documents necessary to evidence and give effect to the extension. (iii) The Decommissioning Period shall commence on the expiration of the Operations Period(including any extensions thereof),and shall continue until the completion of decommissioning activities,which shall not exceed 180 days. (b) At any time during the Development Period, including any extensions thereof provided herein,Tenant may elect, in Tenant's sole discretion,to terminate this Lease upon seven (7) days' notice to Landlord. For the avoidance of doubt, upon any such termination,no further Rent payments shall become due. SECTION 5. TENANT'S USE OF THE LEASE AREA. Tenant may use the Lease Area for Permitted Uses, subject to limitations set forth below: (a) During the Development Period,Tenant: (i) may determine the Facility size and the specific location of the Lease Area and of the Easement Parcels by means of one or more survey(s), and such surveys shall then define the Lease Area and the Easement Parcels and shall be an amendment to this f Lease as a revised Ap enp dik B and Appendixt; and (ii) may use the Lease Area for development work and tests including determining potential solar energy power production on the Property, including studies of sunlight concentration and other meteorological data,extracting soil samples, 3 Southold Lease January ft,2021 i conducting wildlife and other environmental studies, and conducting transmission feasibility studies. For the avoidance of doubt, during the Development Period,Tenant shall not have control over the Lease Area and must obtain Landlord's prior permission (which may not be unreasonably withheld)to enter the Lease Area and undertake the activities described above. (b) During the Operations Period,Tenant may use the Lease Area for any of the Permitted Uses. (c) During the Decommissioning Period,Tenant shall cease commercial operation of the Facility, and shall (x)remove all structures,equipment,foundations, security barriers and transmission lines, and all underground foundations, supports,pilings,cables, conduits and other facilities from the Lease Area and dispose of all materials contained in the Facility in accordance with Applicable Law;and(y)otherwise return the Property to its condition as of the beginning of the Operations Period(ordinary wear and tear excluded)except that the Parties agree that Tenant will not be responsible for replacement of any trees or shrubbery and,further, in the event a roadway or other ingress/egress is constructed,the Tenant is not responsible for removing any constructed access way. This Section 5(c) shall survive any termination of this Agreement. SECTION 6. CONSTRUCTION OF THE FACILITY. (a) Tenant may construct the Facility as Tenant, in its sole discretion, may determine, provided, however,that such construction shall comply with Applicable Law. Landlord consents to Tenant's location of the Facility or related facilities or equipment at any location in the Lease Area, including at or near property boundary lines. (b) Tenant shall give Landlord regular updates on the progress of installing the Facility. After Tenant has determined, in its reasonable judgment,that the Facility has been installed in accordance with all Applicable Laws,and is capable of producing electricity on a continuous basis while exposed to sunlight,Tenant shall notify Landlord that installation of the Facility is complete and shall specify the Commercial Operation Date for the Facility. (c) Tenant may remove such trees and other vegetation or obstructions,as necessary on the Property to obtain solar access to the Facility. SECTION 7. LANDLORD ACTIVITIES. (a) Landlord shall not be required to furnish any services or facilities or to make any repairs or alterations to the Property '! (b) Landlord shall not engage in activities at the Property that will materially impact the topography or soil conditions on the Lease Area,or construct any structures or improvements j on the Lease Area or Easement Parcels. i (c) Landlord shall not construct or install, or knowingly permit to be constructed or installed, on any property owned or leased by Landlord any alterations, modifications or 4 Southold Lease i January A,2021 improvements to such property which would interfere with or block the access of the Facility to sunlight. (d) During the Operations Period and the Decommissioning Period, Landlord shall not enter the Lease Area without Tenant's consent, such consent not to be unreasonably withheld. (e) Landlord will maintain existing drainage tiles or waterways in proper condition and, further,will not alter the natural flow of water in a way that impacts the Facility. Moreover, to the extent necessary,Tenant may elect to install, at its cost, drainage systems as necessary for the Facility and, in so doing, upon Notice to Landlord, Tenant has the permission to tie-in to existing drainage systems in a reasonable manner. Any such tie-in will be completed at Tenant's cost and the Tenant-installed drainage system will be maintained at Tenant's cost. With respect to drainage tiles located on the Property as of the Effective Date. Landlord agrees that Tenant may reroute, at Tenant's sole expense, any drainage tiles which may conflict with locations for Facility foundations or cabling, provided such rerouting does not significantly adversely affect the functionality of the drainage on the Property. Tenant shall bear the cost of having only responsible,and experienced field tile contractors repair or rebuild the tiles damaged by Tenant's operations. Tenant will (i) guarantee all field tile repairs conducted by the Tenant at the repair point for the term of the Lease and (ii) repair any damage to the tiles repaired by Tenant which arise within sixty months (60) months after the Commencement of 1 Operations Date; provided, however,that such obligations will only apply to damage directly caused by Tenant's operations. (f) During the Development Period,Landlord shall not solicit offers to lease to a third party for the purposes of developing or constructing a solar-powered electric generation facility on the Property, directly or indirectly. SECTION 8. RENT PAYMENTS. In consideration for the lease of the Lease Area, Tenant agrees to pay Rent to the Landlord as follows: (a) Development Period. During the Development Period, subject to any Rent Abatement For Taxes/PILOT(as may be exercised by Tenant in accordance with Section 9(c)), Tenant shall pay to Landlord the sum of US$8,000 per annum,payable on the first day of the applicable quarter$2,000 per quarter. The first full month's Quarter and rent for any partial quarter during the Development Period, if applicable, shall be paid within ten(10)business days of the Effective Date. (b) ftf xtian's Period. During the Operations Period, including any extensions thereof, subject to any Rent Abatement For Taxes/PILOT(as may be exercised by Tenant in accordance with Section 9(c)), Tenant shall pay to Landlord the sum of US$335,000.00 per year, payable on the first day of the applicable quarter in the amount of$83,750.00 per quarter. The Rent shall increase at a rate of 1.5%per annum during the Operations Period, including any extensions thereof. v. 5 Southold Lease ; h I A January ,2021 (c) Decommissioning Period. During the Decommissioning Period, subject to any Rent Abatement For Taxes/PILOT(as may be exercised by Tenant in accordance with Section 9(c)),Tenant shall be obligated to continue to pay Landlord Rent at the rate specified in 8(b). (d) Payment-Method. Rent may be paid by check or wire transfer of immediately available funds. Upon request by Tenant, Landlord shall provide Tenant with account information to which wire transfers may be made. Tenant shall pay to Landlord the Rent in four (4) equal quarterly installments during each lease year on the first day of each succeeding quarter until the expiration of the Term, unless sooner terminated. The Rent shall be payable and shall be paid to Landlord without notice or demand. Tenant,at its option, shall have the right to prepay any portion of the Rent. Notwithstanding anything in this Agreement to the contrary, Tenant shall have no obligation to make any payment to Lessor otherwise required under this Agreement until Landlord has returned to Tenant a completed Internal Revenue Service Form W-9. In the event that Landlord assigns,transfers,or sells its interest in the Property, Landlord will provide notice to Tenant and include with such notice a copy of the transfer instrument. (e) Landlord.Remedy. If Tenant defaults in its obligations for payment of rent and such default is not cured upon thirty(30)days after notice of such default from Landlord, Landlord may, at its option, proceed with litigation.The prevailing party shall be entitled to all fees and expenses associated with such litigation, including reasonable attorney's fees. z SECTION 9. TAXES �1 (a) Landlord shall be responsible for all taxes assessed against the Property for the Term and any extensions thereof, other than those obligations of Tenant as detailed in Section 9(c). (b) Reserved. (c) The Parties acknowledge that the Property is currently exempt by any and all taxing jurisdictions as a`Town owned property' and that the Facility to be installed by Tenant on the Property(or portion thereof)will also be exempt by any and all taxing jurisdictions(the tax exemption on the Property and the Facility shall collectively be referred to as the"Tax Exemption"). In the event that(i)this Tax Exemption is changed or revoked with respect to the Property and/or the Facility, (ii)any taxes (whether real property, personal property or otherwise) is assessed by any taxing jurisdiction or authority on the Property and/or the Facility and/or(iii)a payment in lieu of taxes agreement(PILOT) is entered into with the Town of Southold, Southold school district, Suffolk County,any other taxing jurisdiction and/or any other entity(the"PILOT Agreement"),then, in each of clauses(i), (ii)and/or(iii), Tenant shall immediately be permitted(and without the consent of, or any other action by, Landlord)to reduce the Rent then due and payable under this Lease on a dollar-for-dollar basis by an amount equal to (x) any taxes(whether real, personal or otherwise)then assessed and becoming due and payable on the Property and/or the Facility as a result of the termination or loss of the Tax Exemption or otherwise and/or(y)any amounts due and payable pursuant to such PILOT Agreement(s) (collectively,the"Rent Abatement For Taxes/PILOT"). , t 6 Southold Lease 1 3 i January '2021 E In addition (and without limitation to the foregoing),the Parties hereby expressly and acknowledge and agree that Tenant shall be exempt from (and shall not, under any circumstances,be liable for) any roll-back real estate property taxes imposed by any taxing authorities due to the Property no longer meeting the definition of"Town owned property", 'agricultural land" or"horticultural land"or for any other reason as a result of the Property's use as contemplated by this Lease or otherwise. Landlord and Tenant shall reasonably cooperate to appropriately minimize any such taxes contemplated in this paragraph 9(c). (d) Solely upon and after the occurrence of any loss or termination of the Tax s Exemption,Tenant shall pay all taxes for which Tenant is directly billed on or before the date such amounts are due,subject however to the right of Tenant to contest taxes in accordance with this Lease and Applicable Law. Solely upon and after the occurrence of any loss or termination of the Tax Exemption, Tenant shall pay Landlord,within 10 business days after Tenant's receipt of the applicable invoice from Landlord, the amount of such taxes for which Tenant is 1 responsible hereunder and which have not been billed directly to Tenant. Landlord will submit copies of tax bills or notices of assessments, appraisals or statements applicable to the Facility to Tenant promptly upon receipt thereof and,to the extent Landlord pays the same directly to the taxing authorities,Landlord will promptly provide evidence of such payment to Tenant. I (e) Each Party may contest in good faith any tax assessments or payments, provided that all payments are made when due and such contest(or appeal, as the case may be)complies with applicable law. (f) If Tenant fails to pay directly or reimburse Landlord for taxes for which Tenant is responsible hereunder,Landlord may pay the same and in such event shall be entitled to recover such amount from Tenant together with interest thereon at a rate equal to the lesser of(i)one and one-half percent(1'/z%) per month(eighteen percent(18%)per annum)or(ii)the highest rate allowed under Applicable Law. (g) If Landlord fails to pay any taxes,judgments or liens that become a lien upon Tenant's interest in the Lease Area or improvements thereon for which Landlord is responsible hereunder, or fails to pay any obligations secured by a lien or encumbrance on the Property, Tenant may pay such amounts and in such event shall be entitled to recover such paid amount from Landlord,together with interest thereon at rate equal to the lesser of(i)one and one-half percent(1%2%)per month(eighteen percent(18%)per annum)or(ii)the highest rate allowed under Applicable Law. SECTION 10. TITLE;PROPERTY CONDITION;AND LIENS. (a) Landlord represents and warrants as of the date hereof that the Landlord has good and marketable title to the Property subject to no liens,easements,options or other encumbrances other than the Existing Encumbrances specified in Aptieiidix D attached hereto. (b) Landlord further represents and warrants that to its knowledge there is no hazardous or toxic substance,material, or waste that is or becomes regulated by any federal, 7 Southold Lease January A 2021 state or Iocal governmental authority on, under,or about the Property. i (c) After the Effective Date, in addition to Existing Encumbrances, and any refinancing of such Existing Encumbrances which does not increase the amount secured by such Existing Encumbrances,Landlord may grant a mortgage on all or part of its interest in the Property if(i)such mortgage is subject to this Lease;and(ii)the mortgagee enters into an agreement, on terms and conditions reasonably acceptable to Tenant, recognizing the priority of, Tenant's interest in the Property pursuant to this Lease. (d) Landlord shall not allow any encumbrances against the Lease Area other than Permitted Encumbrances. (e) At Tenant's request,Landlord shall use good faith efforts to obtain from holders of Permitted Encumbrances such subordinations or non-disturbance agreements as Tenant may reasonably request to protect and secure Tenant's interest in the Lease Area. (f) All equipment and structures included within the Facility shall,to the maximum extent permitted by law, be personal property and not real property or fixtures to real property, and title to the Facility shall be in Tenant or its mortgagees and assigns. (g) Landlord shall have no right or interest in any of the electric energy produced by the Facility or in any Environmental Attributes,Tax Attributes, or other rights or incentives associated with the production of electric energy by the Facility. (h) SECTION 11. PERMIT APPLICATIONS AND FILINGS. Landlord shall reasonably cooperate with Tenant,to file with such federal,state and local authorities as Tenant deems appropriate(i)one or more applications to obtain any zoning relief regarding the Property or portions thereof as may be necessary-and/or desirable to develop,construct and operate the Facility on the Lease Area; and(ii)one or more applications i; to obtain construction, use other governmental approvals or permits deemed necessary or desirable by Tenant or occupancy permits for the Facility or any portion thereof. Landlord is not obligated to incur any expense in connection with such efforts.Tenant shall provide Landlord with copies of all applications made and permits obtained in the approval process of the Facility. Landlord, hereby agrees to join, consent and sign necessary applications ii prepared by Tenant and authorizes Tenant, its successors and/or assignees to act as its agent and on its behalf in applying for any required permits on this limited basis only. SECTION 12. INSURANCE AND INDEMNITY. (a) Landlord and Tenant shall each maintain appropriate insurance for their respective interests in,and activities on,the Property and the Facility through the Decommissioning Date of the project. Tenant's and Landlord's liability insurance required herein shall include provisions or endorsements naming or including by way of blanket endorsement the other Party as an additional insured as respects each Party's indemnification 8 Southold Lease January A—,2021 obligations outlined in Section 12(c)below and to the extent not provided for in Section 12(c) waving all,rights of subrogation against the other Party and including a similar waiver of i subrogation on all policies required to be maintained herein. (b) Tenant and Landlord covenant and agree that from and after the Effective Date each will maintain,at its sole cost and expense,the following insurance, in the amounts and form specified: (i) Commercial General Liability insurance(including broad form property { damage and contractual liabilities or reasonable equivalent thereto)covering in 1 the case of the Tenant its use of the Lease Area and the improvements and in the case of the Landlord any of its activities on or around the Lease Area and the Improvements against claims for bodily injury or death, property damage and products liability(including completed operations coverage). Such insurance is to t be written on an occurrence basis(not a claims made basis)and'to be in amounts of not less than$1,000,000.00 per occurrence and$2,000,000.00 in the aggregate for each policy year. i (ii) Umbrella Liability insurance coverage on a"following form"basis with limits of not less than $2,000,000 per occurrence and in the aggregate; i i (iii)Tenant shall furnish the above insurances to the Landlord and shall also name the Landlord as an additional named insured in said policies 1 } (iv)Any incident from which liability may arise�shall be reported to the Landlord as soon as possible and not later than twenty-four(24)hours from the time of ' such incident.A detailed written report must be submitted to the Landlord as soon thereafter as possible and not later than three (3)days after the date of such accident. (c) TO THE-FULLEST EXTENT PERMITTED BY LAW, EACH PARTY(THE "INDEMNIFYING PARTY") SHALL INDEMNIFY, DEFEND AND HOLD THE OTHER PARTY,ITS SHAREHOLDERS,PARTNERS, MEMBERS, DIRECTORS,OFFICERS, i EMPLOYEES, AGENTS AND CONTRACTORS(THE"INDEMNIFIED PERSONS"), HARMLESS FROM AND AGAINST ALL LOSSES INCURRED BY THE INDEMNIFIED PERSONS TO THE EXTENT ARISING FROM,OR OUT OF, ANY CLAIM FOR,OR ARISING OUT OF,ANY INJURY TO OR DEATH OF ANY PERSON OR LOSS OR i' DAMAGE TO'PROPERTY TO THE EXTENT ARISING OUT OF THE INDEMNIFYING PARTY'S, ITS EMPLOYEES' AND AGENTS'NEGLIGENCE,WILLFUL MISCONDUCT, OR UNLAWFUL CONDUCT. SECTION 13. MAINTENANCE AND UTILITIES Tenant shall be responsible for Facility'and infrastructure maintenance,operation, land maintenance within the Lease Area, and any portion thereof, including access road maintenance, snow removal, and all other operation and maintenance activities related to the Facility. Tenant shall be responsible for all utilities and services related to the Facility for the Term. 9 Southold Lease January , 2021 ¢B - H . SECTION 14. CONDEMNATION. (a) If, during the Term, any competent authority for any public or quasi-public purpose("Condemnio ')seeks to take or condemn all or any portion of the Lease Area, Landlord ! and Tenant shall use all reasonable and diligent efforts,each at its own expense,to contest such taking. (b) If,at any time during the Term,any Condemnor shall condemn all or substantially all of the Lease Area or the Facility, so that the purposes of this Lease are frustrated,then the interests and obligations of Tenant under this Lease in or affecting the Lease Area shall cease and terminate upon the earlier of,(i)the date that the Condemnor takes physical possession of the Lease Area or the Facility, (ii)the date that Tenant is, in its sole judgment,no longer able or permitted to operate the Facility on the Lease Area in a commercially viable manner due to direct action of any Condemnor, or(iii)the date title vests in the Condemnor (c) The parties will each be entitled to pursue their own separate awards in the condemnation proceeds,which for Tenant will include,where applicable,the value of its Facility, moving expenses, prepaid Rent,and business dislocation expenses.Tenant will be entitled to reimbursement for any prepaid Rent on a pro rata basis. SECTION 15. ASSIGNMENT—RIGHT OF FIRST REFUSAL. (a) Tenant will have the right to assign,sell or transfer its interest-under this Agreement without the approval or consent of Landlord,to Tenant's parent or member company or any affiliate or subsidiary of, or partner in,Tenant or its;,parent or member company,or to any entity as security for or in connection with a financing or other financial arrangement related to the Lease Area and/or the Facility as set forth in Section 19,or to any entity which acquires all or substantially all of the Tenant's assets located at the Property by reason of a merger, acquisition, or other business reorganization.Upon notification to-Landlord of such assignment,transfer or sale Tenant will be relieved of all future performance, liabilities and obligations under this P g Agreement.Tenant shall have the right to sublease the premises, in whole or in part, without 'E Landlord's consent.Tenant may not otherwise assign this Agreement without Landlord's consent, Landlord's consent not to be unreasonably withheld,conditioned or delayed. Any assignment permitted hereunder shall release the assignor for any further obligation s under this Lease including any liabilities accruing after the date of the assignment. I; (b) Upon any assignment pursuant to this Section 15,Tenant shall provide to !' Landlord current information regarding the address of the Tenant and all Financing Parties and the term "Tenant" in this Lease shall refer to the entity that was assigned the rights and obligations of Tenant hereunder. I! ! (c) If Landlord,at any time during the Term of this Lease;decides to sell, subdivide i` or rezone all or any part of the Property,to a purchaser other than Tenant, Landlord shall promptly notify Tenant in writing,and such sale, subdivision or rezoning shall be subject to this Agreement and Tenant's rights hereunder. Landlord agrees not to sell, lease or use any areas of the Property or surrounding property for the installation, operation or maintenance of other solar- ! 10 Southold Lease I January , 2021 powered electric generation facility. Landlord shall not-be prohibited from the selling, leasing or use of any of the Property for non-solar-powered electric generation facility use if it does not interfere with Tenant's rights under this Lease. (d) If at any time after the Effective Date, Landlord receives a bona fide written offer from a third party seeking an assignment of the rental stream associated with this Lease ("Purchase Offer"),Landlord shall immediately furnish Tenant with a copy of the Purchase Offer,together with a representation that the Purchase Offer is valid, genuine and true in all respects.Tenant shall have the right within thirty(30)days after it receives such copy and representation to match the Purchase Offer and agree in writing to match the terms of the Purchase Offer. Such writing shall be in the form of a contract substantially similar to the Purchase Offer. If Tenant chooses not to exercise this right of first refusal or fails to provide written notice to Landlord within the thirty(30)day period, Landlord may assign the rental stream pursuant to the Purchase Offer, subject to the terms'of this Lease,to the person or entity that made the Purchase Offer provided that(i)the assignment is on the same terms contained in the Purchase Offer and(ii)the assignment occurs within ninety(90)days of Tenant's receipt of a copy of the Purchase Offer. If such third party modifies the Purchase Offer or the assignment does not occur within such ninety(90)day period, Landlord shall re-offer to Tenant,pursuant to the procedure set forth in this subparagraph 22(b),the assignment on the terms set forth in the Purchase Offer,as amended.The right of first refusal hereunder shall (i)survive any transfer of all or any part of the Property or assignment of all or any part of the Lease;(ii)bind and inure to the benefit of,Landlord and Tenant and their respective heirs, successors and assigns. j SECTION 16. FINANCING. (a) Tenant shall have the right to encumber its leasehold interest in the Lease Area ;i and in the Facility by security agreement or similar instrument in favor of any person providing financing in respect of the Facility(each, a"Fifiancing'Party"). (b) (i) In the event of a foreclosure or seizure of Tenant's rights with respect to the Lease Area by a Financing Party, Landlord agrees to permit such Financing Party or its transferee to exercise any and all rights of Tenant hereunder without Tenant consent, so long as such Financing Party or its transferee shall tender performance of Tenant's obligations under this Lease from and after the date of any such foreclosure or exercise of rights. Landlord further agrees to give each Financing Party sixty(60)days' notice of and the opportunity to cure any Payment Default by Tenant and one hundred and twenty(120)days' notice of and the opportunity to cure any Non-payment Default by Tenant hereunder. (ii) If the Financing Party elects to cure, but cannot remedy a non-monetary default in i; such one hundred and twenty-day(120)period,then Landlord shall give Financing Party an !' additional reasonable extension of time to do so, provided that Financing Party continues to pursue such remedies with reasonable diligence. The commencement and pursuit of a judicial or i, non judicial foreclosure proceedings-by a Financing Party shall be deemed the commencement �? of a non-monetary cure. (iii) In the event that a Default under this Lease is a result of the bankruptcy of Tenant i; or is otherwise incapable of being cured by a Financing Party or if the Lease is rejected in 11 Southold Lease January , 2021 connection with a bankruptcy proceeding by Tenant, a trustee in a bankruptcy or other such party to such proceeding on behalf of Tenant,within (10) days after a request from a Financing Party, which request has been made within thirty(30) days following said Financing Party's receipt of written notice of such Default or rejection of the Lease in a bankruptcy proceeding,Landlord i agrees that it will, at Financing Party's sole option, enter into a new lease with a Financing Party I or its nominee for the remaining portion of the Term, and upon the terms and conditions that F would have been applicable for such period under this Lease had the Default not occurred, it being the intention of the parties if a Financing Party so elects,to preserve the Lease and the benefit of the leasehold estate created by this Lease for the benefit of a Financing Party without interruption and for no additional consideration from a Financing Party. Any new lease shall be superior to all rights, liens and interest intervening between the date of this Lease and the granting of a new lease and shall be freed of any and all rights of Tenant under this Lease. (c) Landlord shall promptly after a written request by Tenant,execute and deliver to Tenant(or to such party as Tenant shall designate), a written statement certifying as to(w) whether this Lease is in full force and effect, (x)the dates through which amounts due to Landlord have been paid, (y)there are any known defaults or ongoing disputes between Landlord and Tenant and (z) such other matters as may be reasonably requested by the Tenant. SECTION 17. RECORDATION. (a) The Parties agree that this Lease shall not be recorded, but the Parties shall execute and record a Memorandum of Lease or similar instrument("Memorandum�df-Ldasd"), attached hereto in Appendix E, and a Notice of Easement("'Notice of.Easdment")in customary form to evidence the grant of leasehold and easements under this Lease. Recordation of the Notice of Lease and the Notice of Easement shall be at Tenant's expense. SECTION 18. DEFAULT AND REMEDIES. t (a) If Tenant shall fail to perform any of Tenant's material obligations under this Lease and such failure shall remain uncured following the required notice and cure periods as 1 provided below(a"Default"),Landlord shall have the right to terminate this Lease by notice to Tenant and exercise any other remedies provided in this Lease or under applicable law. A Default maybe either a Payment Default or a Non-Payment Default. A"P�y�t Default' shall mean the failure to make timely payments of a financial nature as provided herein. Landlord agrees to simultaneously notify in writing the Tenant and all Financing Parties of Tenant who have given advance notice of their interest in this Lease to Landlord, of any failure by Tenant to perform any of the Tenant's obligations under this Lease,which notice shall be sent to the address set forth herein and as might be subsequently provided to Landlord and shall set forth in reasonable detail the facts pertaining to such failure and specify a reasonable method of cure. (b) The Tenant shall have the opportunity to cure any Payment Default within thirty (30)days of said notice by paying all then overdue payments in full together with interest i thereon at the rate of one and one-half percent(1'/z%)per month. (E C, 12 Southold Lease h . I January ,2021 (c) The Tenant and any Financing Party shall have the opportunity to cure any Non- Payment Default within 90 days of said notice or, in the event that a cure might take longer than 90 days because of the nature of the Non-Payment Default or because of climatic conditions of the Lease Area,the Tenant or the Financing Party on the Tenant's behalf, shall notify Landlord of the anticipated date for curing of the Non-Payment Default and shall begin to diligently undertake the cure within the 90 day period. (d) if Landlord shall fail to perform any of its obligations hereunder,Tenant may cure such default and, if Landlord fails to reimburse Tenant the amounts paid by Tenant to effectuate such cure within ten (l 0)days after demand,Tenant may offset against any amounts owing to Landlord hereunder any amounts paid by Tenant to cure such non-performance by Landlord together with interest thereon at the rate of six percent(6%)per annum.In addition, in the event of a Landlord default,Tenant may exercise any other remedies available under this Lease or Applicable Law, or in equity, including without limitation the'right to seek specific performance, injunction or declaratory judgment,without any obligation to post any security. (e) The Parties acknowledge and agree that Tenant's access to property Yand the covenants and restrictions contained in this Agreement are,necessary, fundamental, required and x specifically designed to protect the legitimate business interests of Tenant;(b) such covenants and restrictions and access to the Property relate to matters that are of a special, unique,and extraordinary character;and (c)a breach of any such covenants or restrictions will result in irreparable harm and damages to Tenant that cannot be adequately compensated by a monetary award.Accordingly,the Parties expressly agree that in the event of an actual or threatened breach by Landlord of the its obligation, Tenants shal I be entitled to a temporary restraining order or an injunction(or both)to specifically enforce the provisions of this Agreement. Further, nothing herein shall be construed as prohibiting compensation to Tenant for such breach or threatened breach, including(but not necessarily limited to)recovery of damages or reasonable attorneys' fees. a (f) Notwithstanding anything to the contrary herein,neither party shall be liable to l the other for incidental, consequential, special,punitive or-indirect damages, including but not limited to loss of use or loss of profit or revenue. l ' SECTION 19. DECOMMISSIONING. Upon expiration of the Operations Term or any earlier termination of this,Lease following a Default hereunder by Tenant,Tenant shall Decommission the Facility within the Decommissioning Period. Tenant shall post an j; appropriate bond which shall be kept on file with the Southold Town Clerk covering the costs of removal and remediation throughout the decommissioning process. The provisions of this Section 19 shall survive any termination of this Agreement. , i SECTION 20. FORCE MAJEURE. If performance of this Lease or of any obligation hereunder is prevented or substantially restricted or interfered with by reason of an event of li "tdree M'aieurc'(defined below),the affected party, upon giving notice to the other party, shall be excused from such performance to the extent of and for the duration of such prevention, restriction or interference."Force Niaieure'means:(i)Acts of God or acts of Providence �1 € including hurricanes,tornados, floods,washouts, lightning,earthquakes, storm warnings and any other adverse weather conditions which directly result in a party's inability to perform its � r 13 Southold Lease i 1: . January 11,2021 obligations,(ii)acts of government or any agency, subdivision or instrumentality thereof having, claiming, or asserting authority or jurisdiction over the subject matter,when any such act of government directly results in a party's inability to perform its obligations, (iii)acts of civil disorder including acts of sabotage,acts of war, lockouts, insurrection,riot, mass protests or i demonstrations,threats of any of the foregoing,and police action in connection with or in reaction to any such acts of civil disorder,when any such acts of civil disorder directly results in a party's inability to perform its obligations, and(iv)failures resulting from fires, washouts, mechanical breakdowns of or necessities for making repairs or alterations to transformers,power lines, switching equipment, inverters,machinery, cables,meters or any of the equipment therein or thereon, when any such failure directly results in a Party's inability to perform its obligations. SECTION 21. NOTICES. k Notices under this Lease shall be sent to the addresses set forth below: 1 LANDLORD: Town of Southold i 53095 Route 25 PO Box 1179 „r Southold,NY 11971 TENANT: SRE Solar Origination 2,LLC Attn:Legal Department „i 1515 Wilson Blvd,P Floor 1 Arlington, VA 22209 Email: legal@summitridgeenergy.com j Notices shall be deemed received if sent by certified mail (return receipt requested), courier or nationally recognized overnight delivery service'to last known address of the intended recipient. Notices may also be sent by email for which the sending Party receives a confirmation that the email message has been completely transmitted without error(of which auto-replies.are is insufficient). Email messages received on any day that is not a business day,or after 5:00 p.m. local time on a business day, shall be deemed to have been delivered on the next business day. A Party may change its address for delivery of notices hereunder by notice given in accordance with this Section. Failure of the Tenant to notify the Landlord of an address change for it or any ' Financing Party shall excuse the Landlord from complying with any notice obligation herein to E such changed addresses,provided however that the Landlord will in no event be excused from providing notices required herein to all addresses that Landlord has notice of. Notices will be deemed given upon receipt or upon the failure to accept delivery. ` In the event of a change in ownership,transfer or sale of the Property,within ten (10) days of such transfer, Landlord will send the documents listed below to Tenant.In the event I' Tenant does not receive such appropriate documents,Tenant shall not be responsible for any p failure to pay the current landlord. ' i' (a)Old deed to Property 1; (b)New deed to Property (c)Bill of Sale or Transfer 14 '' Southold Lease i 1 January ,2021 ' (d)New W-9 (e)•New Payment Direction Form (f) Full contact information for new Landlord including all phone numbers SECTION 22. NO PARTNERSHIP. Landlord does not, in any way or for any purpose,become a partner of Tenant in the conduct of its business,or otherwise, or joint venturer or a member of a joint enterprise with Tenant by reason of this Lease.Tenant shall bear sole responsibility for payment of any commissions or broker's fees to Tenant's agents,brokers or investors. SECTION 23. MISCELLANEOUS PROVISIONS. (a) Gaverriiitg Law. This Lease shall be governed by and construed in accordance with the laws of the State in which the Leased Area is located. (b) Rales'oflnt;rpreta'tiofi. Section headings are for convenience only and shall not affect the interpretation of this Agreement. References to sections are, unless the context otherwise requires,references to sections of this Agreement. The words"hereto", "hereof'and j "hereunder"shall refer to this Agreement as a whole and not to any particular provision of this r � Agreement. The word"person" shall include individuals;partnerships;corporate bodies (including to corporations, limited partnerships and limited liability companies);non-profit corporations or associations; governmental bodies and agencies;and regulated utilities. The {� word"including"shall be deemed to be followed by the words"without limitation". I' (c) Entire AAA rreemefittAm nd'indtit. This Lease contains the entire agreement of the j; Parties and there are no other promises,conditions, understandings or other agreements, whether i' oral or written,relating to the subject matter of this Lease. This Lease may be modified or ji amended in writing, if the writing is signed by the Parties. (d) Severability. If any non-material part of this Lease is held to be unenforceable, !' x the rest of the Lease will continue in effect. If a material provision is determined to be j unenforceable and the Party which would have been benefited by the provision does not waive its unenforceability,then the Parties shall negotiate in good faith to amend the Lease to restore to j the Party that was the beneficiary of such unenforceable provision the benefits of such provision. ' (e) Waiver. The failure of either Party to enforce any provisions of this Lease shall not be construed as a•waiver or limitation of that Party's right to subsequently enforce and ' compel strict compliance with every provision of this Lease. i (f) Bindin "l ffent. The provisions of this Lease shall be binding upon and inure to j' the benefit of the Parties and their respective heirs, legal representatives, successors and I permitted assigns. I; 15 ' € Southold Lease a t u 1 f January ,2021 (g)' No;Assurance as to Development. The Landlord hereby agrees and acknowledges that the Tenant makes no representations,warranties,commitments or guarantees of any kind as to the likelihood of the Tenant successfully developing, financing and/or constructing a Facility on the Lease Area and the Landlord receiving Rent hereunder. The Landlord makes no representation,warranties or guarantees of any kind as to the suitability of the site for Tenant's intended use. 1 i (h) Cooperation. The Parties acknowledge that the performance of each Party's obligations under this Lease may often require the assistance and cooperation of the other Party. Each Party therefore agrees, in addition to those provisions in this Lease specifically providing for assistance from one Party to the other,that it will at all times during the Term cooperate with the other Party. (i) Business Days. Any payment or other obligation which is due to be performed on or before a day which is not a business day in the state in which the Leased Area is located shall be paid on the next succeeding business day. (j) Mechanics diens. Tenant will not permit any mechanic's lien or liens to be placed upon the Property or any building or improvement thereon during the term hereof for work done on behalf of Tenant and in case of the filing of such lien Tenant will promptly pay same or post a bond to remove such lien from the land records. Pf default in payment thereof shall continue for thirty(30) days after written notice thereof from Landlord to the Tenant,the Landlord shall have the right and privilege at Landlord's option of paying the same or any portion thereof without inquiry as to the s validity thereof,and any amounts so paid,including expenses and interest,shall be so much additional 1 indebtedness hereunder due from Tenant to Landlord and shall be repaid to Landlord immediately on rendition of bill therefor. (k) No Merger. There shall be no merger of the lease and any other estate of interest in i; the Property,whether owned by the Tenant or anyone else. (l) Waiver of Landlord's Liens.Landlord waives any and all lien rights it may have, statutory or otherwise,concerning the facility or any portion thereof.The solar-powered electric generation facility equipment and improvements shall be deemed personal property for purposes 1 of this Lease,regardless of whether any portion is deemed real or personal property under applicable law,and Landlord consents to Tenant's right to remove all or any portion of the i facility from time to time in Tenant's sole discretion and without Landlord's consent. y (m) ;CounMarts. This Lease may be executed in counterparts,which shall together i constitute one and the same agreement. Facsimile signatures shall have the same effect as original signatures and each Party consents to the admission in evidence of a facsimile or photocopy of this Lease in any court or arbitration proceedings between the Parties. i � f'! [The remainder of this page has been intentionally left blank. I; 1 Signatures appear on next page] I+ I, 16 Southold Lease s � I, , i � January�,2021 IN WITNESS WHEREOF,this Lease is entered into by the Parties as of the Effective Date. LANDLORD TENANT Town of South SRE Solar'Ocigindiiori 2, LLC By: By: Name: �6 ofif Name: Stephen J'Raeder I1 Title: �.. ss�� Title: Chief Executive Officer Date: 9/z/ Date: January 11,2021 APPROVIED"", Signature Page s January ,2021 GLOSSARY OF TERMS i As used herein,the following terms shall have the meanings set forth beside them: -Ago]icable Law"means any constitutional provision, law, statute, rule, regulation, ordinance, treaty, order,decree,judgment,decision, certificate,holding injunction, registration, license, franchise,permit,authorization,or guideline issued by a Governmental Authority that is applicable to a Party to this Agreement or the transaction described herein. "Gorrrtriercia[tOpeiation"shall occur for the Facility when (i)Tenant has obtained all necessary licenses, permits and approvals under Applicable Law for the installation and operation of the Facility, (ii)the Facility has been connected to the local electricity distribution system, (iii)the Facility is ready and able to generate and supply electricity,and (v) if applicable and to the extent required,the local electric distribution company has approved interconnection with the electricity distribution system to allow regular operation of the Facility. "Commercidl Operation Date"means the date,to be designated in accordance with Section 6(b), hereof,that the Facility shall have achieved Commercial Operation. "Decommission"or"Decommissionin ': means performance of the activities described in Section 5(c). ".D"ecornniisgiohiri Period" is defined in Section 4(a)(iii). "17efaulfi" is defined in Section 18(a). "DevelopriientPeriod"is defined in Section 4(a)(i). ".Easement(s)"shall mean those portions of the Property as described in Section 3,which boundaries Tenant shall determine during the Development Period by means of a survey as specified in Apiiend (C: Such survey shall be an amendment to the Lease, and the Easement(s) shall then mean the areas as set forth in such amendment,to be detailed in Appendik G. "Environmental Attributes" means renewable energy certificates, carbon trading credits, emissions reductions credits, emissions allowances,green tags,Green-e certifications,or other entitlements, certificates,products, or valuations attributed to the Facility and its displacement of conventional energy generation, or any other entitlement(other than Tax Attributes)pursuant to any federal, state, or local program applicable to renewable energy sources,whether legislative or regulatory in origin, as amended from time to time. ',Existing,Eneumbratnces"mean those interests in the Property set forth in Appeiidix,,D attached hereto. "Facili "means the solar powered electric generating facility and accompanying energy storage and distribution system with an anticipated generating capacity of approximately of up to six(6) megawatts DC and all related equipment and structures, including inverters,transformers and facilities for interconnection with the local electricity distribution company,to be installed by Tenant on the Lease Area in accordance with this Lease. Al January ti,2021 'Financing,Pa is defined in Section 16(a). "Force MAieure' is defined in Section 20. ".Governmenla.l'Authority'means any international,national,federal, state, municipal, county, regional or local government,administrative,judicial or regulatory entity,and includes any department, commission, bureau, board, administrative agency or regulatory body of any government. "Lease Area"means the Property, until further described as follows: During the Development Period,Tenant shall determine the portion of the Property needed for Tenant's use under this Lease by means of a survey as specified in ApVbndix,B and such area(s) shall determine the Lease Area boundary. Such survey shall be an amendment to the Lease as Appendix-B.and the Lease Area shall then mean the areas as set forth in such amendment. - "Losses"means any and all losses, liabilities,claims, demands, suits,causes of action, judgments, awards,damages,cleanup and remedial obligations, interest, fines, fees,penalties, costs, and expenses(including all attorney's fees and other costs and expenses incurred in defending any such claims or matters or in asserting or enforcing any indemnity obligation). Nod,;pavmerit Default"is defined in Section 18(a). "Noel,ce:OrLease';' is defined in Section 17(a). "Operating.'Year"means a twelve-month period commencing on an anniversary of the Commercial Operation Date(or with respect to the first Operating Year, commencing on the Y Commercial Operation Date)and ending on the date immediately preceding the next anniversary of the Commercial Operation Date. "Operations,Period" is defined in Section 4(a)(ii).. "Parties"means Landlord and Tenant and "PAM�"means either Landlord or Tenant. "Ptwment:Defaulf is defined in Section 18(a). "Permittedthatrnbran•ces°'mean the Existing Encumbrances and any additional mortgages granted by Landlord in accordance with Section 10(b)hereof. "Permitted Os e" means the use of the Lease Area for the development, installation, construction, interconnection,maintenance, operation,repair,replacement and decommissioning of the Facility and energy storage device(s) and for the production, delivery and sale of electricity produced by the Facility and associated Environmental Attributes. "Prope " means the real property described in Appendix A attached hereto,which includes the Lease Area and the Easement Parcels. "Rent"means the payments to be made in accordance with Section 8 hereof. A2 3 January=1 ,2021 "TAR Attributes"means investment tax credits(including any grants or payments in Iieu thereof) and any tax deductions or other benefits under the Internal Revenue Code or applicable federal, state, or local law available as a result of the ownership and/or operation of the Facility or the output generated by the Facility(including,without limitation,tax credits(including any grants or payments in lieu thereof)and accelerated and/or bonus depreciation). "Term"shall mean all of the Development Period,the Operations Period,and the Decommissioning Period,as such periods are described in Section 4. "Town owned Property"!shall mean properties owned by The Town of Southold and any assoaiated.municipal entities., i 1 A3 ------ - -- ------------- ---------- -- � E January�, 2021 a Al i , 3 January ,2021 APPENDIX A PROPERTY DESCRIPTION The 60 acre parcel located at 6155 Cox Lane,Cutchogue,NY, as highlighted below., , 3 I l, January L_L ,2021 APPENDIX B LEASE AREA The 60 acre parcel located at 6155 Cox Lane in Cutchogue,NY,as highlighted below:, Parcel ID Number: 1000096000100017005 Q 51 COX1N,CUTGHOOUE,N X Q' STRUT ,g+< ,reirnniaariioOovmOG� rm STK 10A Ai GWDt. ,_ V,< OWtKiNANE rv�W �1�` Notes: 1. This Exhibit may be replaced by a land survey and/or construction drawings of the ' Lease Area once received by the Tenant. 2. Any setback of the Lease Area from the Property's boundaries shall be the distance required by the applicable governmental authorities. 3. Width of access road shall be the width required by the applicable governmental authorities. 4. Any type,'number,mounting positions,and locations of equipment are illustrative only. Actual types,number,mounting positions,and locations of equipment may vary from what is shown above. I January,2021 E i i f S �q H 1 I s i' i �1 t M January ,2021 APPENDIX C EASEMENT PARCELS [To be populated by Summit Ridge if needed] Notes• 1. This Exhibit may be replaced by a land survey and/or construction drawings of the Easement Parcels once received by the Tenant. 2. Any location of the easement improvements,signage, gates, boundaries, or access to public rights of way shall be the distance required by the applicable governmental authorities. 3. Width of access road shall be the width required by the applicable governmental authorities. i 1 t s E January��,2021 APPENDIX D EXISTING ENCUMBRANCES 6 i i i January R ,2021 E E EXHIBIT E , x f MEMORANDUM OF LEASE 3 IICOUNTY This Document Prepared By: Robert C.Gates KAVANAGH, SCULLY, A SUDOWx WHITE FREDERICK,P.C. Attorneys&Counselors at Law 301 S.W.ADAMS STREET SUITE 700 PEORIA,IL 61602 (309)676-1381 1 1 Mail to: Robert C.Gates do Kavanagh et.al. 301 S.W.ADAMS STREET SUITE 700 PEORIA,IL 61602 i File Noir i MEMORANDUM OF LEASE AND EASEMENTS This Memorandum of Lease is entered into on this_day of r 2020 by and between The Town of Southold,having a mailing address of 53095 Route 25,PO Box U 79, Southold,NY 11971 (hereinafter referred to as"Landlord")and SIZE Solar Origination 2,LLC,a Delaware limited liability company,having a mailing address of 1515 Wilson Blvd, Suite 300,Arlington, VA 22209(hereinafter referred to as"Tenant"). 1. Landlord and Tenant entered into a certain Ground Lease("Lease")on the_day of September,for the purpose of installing,operating and maintaining a solar-powered electric generation facility("Generation Facility")and easements for access and servicing the facility. All of the foregoing are set forth in the Lease. 2. The Lease includes a Development Period effective from the date of the Lease and for 550 days with options to extend the Development Period. The initial lease term will be twenty years commencing on the effective date of written notification by Tenant to Landlord of the start of the Operations Period Commencement Date,with two successive five year options to renew, and then a Decommissioning Period of up to 180 days. I , 3. The portion of the land within which the Lease Area where the Generation Facility and the supporting easements will be located is described in Exhibit 1 annexed hereto. i I' January t 2021 4. This Memorandum of Lease and Easements is not intended to amend or modify,and shall not be deemed or construed as amending or modifying,any of the terms, conditions or provisions of the Lease,all of which are hereby ratified and affirmed. In the event of a conflict between the provisions of this Memorandum and the provisions of the Lease,the provisions of the Lease shall control. The Lease shall be binding upon and inure to the benefit of the parties and their respective heirs, successors,and assigns, subject to the provisions of the Lease. SRE Solar Origination 2,LLC,a Delaware limited liability company 1 13y: �--�'' Its:Manager 1 1 TENANT ACKNOWLEDGMENT STATE OF VIRGINIA ) ss: COUNTY OF ARLINGTON ) On th;�-ay-of ,f2020,before me personally appeared . -'. grid acknowledged under oath that he/she is a duly adth9eizedAlaAger of SRE Solar Origination 2,LLC,a Delaware limited liability company,the limited liability company named in the attached instrument,and as such was authorized to execute this instrument on behalf of the limited liability company. ` r��i�ttstioi►��y r` -Not", Public:`, ��•� l:!`R P��ti�,,r.•r•...,��q�6i,��I My Commission Expi_ , `? r , January ,2021 ` LANDLORD ACKNOWLEDGMENT i I STATE OF NEW YORK ss: COUNTY OF SUFFOLK ) On the it q day of 1 Q _____ ,244,before me personally appeared 6 C�o . ��� ,'and acknowledged under oath that he she is a duly authorized Manager of 'IY�1.�� p (� yl the limited liability company named in the attached instrument,and as such was authorized to execute this instrument on behalf of the limited liability company. Notary ublic: 0 , My Commission Expires: ulla.. LAUREN M. STANDISH Notary Public-State of New York No.01 ST6164008 1 Qualified in Suffolk County Commission Expires April 9,2023 i i January ,2021 EXHIBIT 1 DESCRIPTION OF THE PROPERTY The 60 acre parcel located at 6155 Cox Lane in Cutchogue,NY,as highlighted below. i Parcel ID Number: 1000096000100017005 .MM SC�cr ream ry h•SS CGX.� f x.r j k ry> V F[ ' ,. iaw� 100W95071SEt�iDt# �p g k , � � axaEs•+a�eze BEET �' S'REFF'SFE t � • � ✓Rv S"KE%TtlA y ry cODE A'A£Ca4A IED 641 4crt(}�(65T.CT fU „&�Sg.e WMY USE CM6 ` CNftrci:W`12 • � � XY.-"a%fi �y. � I Jt I� 11 ' {$t I is ,I I' I, January 1 , 2021 APPENDIX F ' W-9 t 1 t 1 I 1 1 i+ I, I' I� �V 1 SUMMIT RIDGE ` ENERGY Lane,Solar and Battery Storage Proposal for Town of Southold Landfill at 6155 Cox Cutchogue, NY k� �� ,y�+;°w'/�;q,u.s�.""'r` W r�srw.q- �: `e. i•;. , ., _�d`" z�H'l"s��a" "e�•��,��e ""''aa., ;b ;',. �•-raw,...,��¢ ,. ,�,�", - •,¢� �ia ;,ft , %�+' t,wa,, e ?`� '01 004-RODOM14 fiE :tea xY.„ •v Y >> - ��'° 6 z¢ a I I I� {i i4 Will Fischer Vice President July 17, 2020 100 Church Street, Suite 800 e New York, NY 10007 www.srenergy.com SUMMIT RIDGE ENERG`! July 17, 20210 I I � To Whom It May Concern: Summit Ridge Energy (Summit Ridge) is pleased to provide the enclosed proposal to lease the Town of Southold's landfill (the Landfill) on Cox Lane for the construction of a ballasted solar photovoltaic system coupled with battery energy storage. The Summit Ridge management team is comprised of industry leaders with years of experience developing off-site solar projects across the U.S. Summit Ridge launched in June 2017; in June 2019, we announced Summit Ridge Capital, our exclusive, joint venture partnership with Hannon Armstrong Sustainable Infrastructure (NYSE: HAST) to provide equity for our community solar pipeline. We believe our partnership with Hannon Armstrong, familiarity with community solar and experience in the New York market makes us uniquely positioned to transform the Southold landfill into a revenue-producing asset for the Town of Southold. Summit Ridge Energy met with Bob Ghosio in early 2020 and provided an unsolicited offer to lease the Landfill. Since that time, PSEG-LI has significantly bolstered its incentives for solar built through the Community Distributed Generation (CDG)program which has allowed SRE to significantly increase its offer. In addition, the SRE team has been busy working with other property owners on the North Fork to lease their land for battery storage, with a signed lease with a property owner on Route 25 in Greenport Village. SRE is working to stabilize and de- stress the power grid during peak power usage season by siting in the areas of highest need in and around commercial and industrial zones. Thank you for your time and consideration of this proposal, we look forward to negotiating the lease agreement and pushing the project development forward. Please don't hesitate to reach out at any time, we are happy to provide additional references upon request. Sincerely, Will Fischer Vice President wfischer@srenergy.com 646-979-7066 2 SUMMIT RIDGE TABLE OF ""'ONTENTS SUMMIT RIDGE ENERGY OVERVIEW...................................................................................4 CompanyProfile...............................................................................................................................4 LandfillExperience...........................................................................................................................4 ProjectReferences...........................................................................................................................6 PROJECTMANAGEMENT.................................................................................................... 10 Development...................................................................................................................................10 Engineering.....................................................................................................................................10 Interconnection, Permitting &Other Third-Party Approvals......................................................11 Procurement& Construction.........................................................................................................13 Commissioning...............................................................................................................................14 Operations &Maintenance............................................................................................................15 PROJECTPROPOSAL.......................................................................................................... 16 LeaseOffer.....................................................................................................................................16 SolarSystem Design .....................................................................................................................19 StorageSystem Design.................................................................................................................20 Exhibit A: PSEG-LI Interconnection Pre-Application Results..........................................22 Exhibit B: Forms of Site Lease Agreement..........................................................................23 Exhibit C: PVWatts Simulation Results..............................................................................24 Exhibit D: Bidder Attestation...............................................................................................25 Exhibit E: Conceptual Site Plan...........................................................................................26 3 SUMMIT RIDGE ENERGY SUMMIT RIDGE ENkRGY OVERVIEW Company Profile Summit Ridge Energy (SRE)was founded in June 2017 and is comprised of industry leaders with decades of collective experience developing onsite and offsite solar projects with top market-share positions in New York, Massachusetts, New Jersey, and Maryland. Previous customers include the Fall River Housing Authority, Tufts University, Bristol Community College, the City of New Bedford, Town of Webster, City of Brockton, MIT Lincoln Laboratories, Wal-Mart, Anheuser-Busch InBev, Praxair, Bloomberg, and Columbia University. The mission at SRE since day-one, however, has been different: to offer the benefits of solar power to the ratepayer—to the people. As such, SRE has developed financing capabilities uniquely suited to community solar. SRE is a community solar pioneer, having financed one of the first community solar projects in the country with 100% residential subscribers. In June 2019, SRE announced an exclusive,joint venture partnership with Hannon Armstrong Sustainable Infrastructure (NYSE:HASI)to finance its community solar pipeline. Hannon Armstrong is a leading capital and services provider focused on sustainable infrastructure markets that address climate change with approximately$5.5 billion of managed assets. Since its IPO in 2013, Hannon Armstrong has financed approximately $6 billion in energy efficiency and renewable energy transactions driven by its extensive in-depth knowledge of the solar and energy services industries, project and structured finance and the management of portfolios of numerous power projects. Landfill Experience The SRE team has extensive experience developing solar atop former landfills, in some cases with Summit Ridge Energy and in other cases, with former employers. Below is a sample of these projects, which demonstrate a deep understanding of the engineering, development and financing considerations unique to landfills. i. INS== I System 1.8 MW IS MW 2.7 MW 4.7 MW 6.6 MVV System Ground Ground Ground Ground Ground mount, mount, mount, mount, mount, pile- Type ballasted ballasted ballasted ballasted driven Location New!Ii; Wgbsteri,,MA Pembroke, Brockton, MA 'Fort 4 SUMMIT ROGIF ENERGY 7 -MA-' MAWashin€tp MDRemediated m Landfill EPA Municipal Municipal Municipal Construction Type Superfund Solid Waste Solid Waste Solid Waste &Demolition Site Year 2015 - 2015 2017 2017 201=9 Completed Table 1. SIRE Team's Landfill Experience Active Markets SIRE is a community solar pioneer, having financed one of the first community solar projects in the country with 100% residential subscribers. It is an active developer and financier in the New York Community Distributed Generation (CDG) program and is the leading developer/financier of community solar projects in Illinois through the Illinois Power Agency's Adjustable Block Program. Below is an overview of the markets in which it currently operates. i "sYY„1 .n,: ,,, E __ ,eg'n° , J ", <- " " •' gy( A MD pw Figure 1: SRE's active community solar markets 5 A4, SUMMIT RIDGE N',--R GY Project References Summit Ridge Energy has established itself as a leader in community solar, and several other solar markets nationwide, within its first three years of operation. Below is a list of references to demonstrate SRE's ability to execute on projects and drive value for its development partners and clients. ou - 4- 51 V7 p 'up ig kW, "".A-,A I ' WANNM�4 xz� 'cR -'- , 0- / ;z i"^WOW ui 44 www"t *-tv vvci�' 0 Wto R a A*4, SUMMIT RIDGE ENERGY v y.< .,sy,,y�//,✓j,�, „`"` k, -fix,ate+ Y,,,rss � «,., �� �"wx'M :"�, r ��' �f✓1, �',�,',���D.� ,�.�iof/��>�.t`'�°.�: ,�j/�% ���".sC,pxdr�/i„y�i'�"�G.r �,�"'1ev,r, is%` 6W£% FROM R A' �t N av'= ,.iia �. ,�"'� �."'�.� .w�t .�.,,.�ser: ..� h' r' a��a��ti.yrx w,�v'%ne'L"Y'.M�:x«.d:,✓:�", , /,irsx"ni,;.�•.;•nwrvv�ma�..r.��";...� „nv,.�a�•,.s�x<,,.,z-x,+�>r r'xe ^.�^"e<„"v> .,3��(" < M, y,.^^ +� - ••n-�•,-., < -- _ y.l,x>, -n 5� iRfh�3 a�.�" _ • ,E� ^awinr ,ice E �! y,.d �;k•�<�,' ��>?�raa"iP';,,"%,��%,°a^�ir,�"�„t>:,'�,�'a� a;�'''rC'`r4h�ec«'",",�K� ��'��z '°jyF,.�a.��a�t`��°v_ ?>e:;^� w.e` a._ :.E�:v'ava/-c�e��': ..�,o-���.. :M`<<�✓.ea/. �a;au.,,,..,.,.as»,,.,..' ,,. �+'�. "rr�� ya`.�,'�a�,v,� �,.a..,���>E�•T:,"r��;K.,4?��€�q�� '". , d, jm..«�« ,� � >'s,'m uhf��.'°4��� vxa'tE'�'`5s�a€��3��•taaj,����k.;.rsrs `�;-s,�:kZ "r€� -3 "�'a"" z*�,/> � �'r,''��.- ^- 'a �;Wi,^,<ara!�✓,,�,t �">�, f�k - Vis,.,,, ��i'r C 7 -k"�. �� �;s„�a°^�z<5,,� � ,�, „�. � " `i'rozg,,,,w � y�� .��<HI.✓ - n,;;,,,.:,.r„Y;%.� ii�tV `„a"I' `�a� -�-_• '%%��/�'r�x/3"t�.,;dv '"/'" a.,`�a.,,:,�iiwa/���'`/ �_34- � `um ,�s%���a E'�u A'""f,,. � >/f✓«F�Aj�rbM'xY,> _r�w,µ9'yf�_., �I "Sr ;_ �# ,5 a>Nu ✓ .-> ��"� .,-,e ,�,Sw„< �.� f�/�"tle ####���ih �� a;�T ��r`"�3v g . f�a���«'i�:E��„a�aa<•�...,_w,- �, .. '��".rx�:.",.a fia�.:,.w`a. "� ,a..,`�` - 9w<«`'s:�,"s3-�.' ',�:,�i.-..,_"�'" � .„F'%�° '� 7 SUMMIT RIDGE ENERGY /*i>`�'+�zrn" j"4� ,5"rt /, o pm„y” ,� ';.;4si %'%✓�e<.. « :h Q ^ '� ��"„ jas ✓>,a, ;; �s.,a:y mow„ I ,..,»�_� ..✓r,,,» `d �hfi,�,, %'./ M a it l 7 xwaft r „ i i I ».: fit ,� �3<»�"tip•�„�,,,., I; � �z�� �,✓�;; -: .� mss ��l�i� r ��'��_ «. „�„ '��'w,�;,«,��� � �� .� _ taw µ'a " ~}” rya., �� . ✓ri`'',%l. o's 0 a/,= ;,mm-11111 " � a y et ," "-8. N —,t4:3k� � -^.: �•,£� .,, �.��. �mm vs-wr - '�?��{wa���"y'�-''�'�rn;: � „�'« " ��`��� I , 1 8 a - - SUMMIT RIDGE ENERGY f "",.m., Sa,�d-� c>y ,i`,�.�x� ���' ..-mA�° � ,orn_ �.€'� �?�9 c z'.�S, "a;t" �`4 sw�•�, � `ce � " �£�4 Baa+ a%3 16z Orr, g-q � Fes` � sa*r�,-`•�-�"� �' : s� -�«�'���u"�C� _"��� 3b^ �,,, qr�s..: 4t4''_i1 {NrR, u; mss *1". x *t51,- '� ",M y� � t� - +�,;xa,rrxitt �;>,�' ��s- �` Yh�5 _.€y y�ys�; '��,`�.�Z� •�=t�r F,,.. 40k s •C4=Cf',• ffi°l ' � 9&�» 4 r..,£ {'�{}$�^k aa'a t�3 dx+%:4 `yAS�Fid'£ms A2i� ,:,t ::,,».�, s� a;r xy #raa% "'r_s"* ra3fixare:, =as° --^ k�zxcytx� ip��.'. till tra ti s.al� 9 k A� SUMMIT RIDGE ENERGY PROJECT MANAOEMENT i Summit Ridge's "best in class" experience spans the full development lifecycle including origination, contracting, due diligence, permitting, financing and construction management. The team has experience with rooftop, carport and ground-mounted solar projects. In its first three years of operation, SRE has closed on or constructed over 100 MWdc of solar photovoltaic projects. Development Following stated interest from a property owner, SRE will initiate negotiation of a land lease. SRE's project development team will conduct due diligence to fully assess site conditions, which will dictate the engineering plans and requirements, and ultimately the final project design. Meanwhile, project management staff will develop a list of required permits and approvals, as well as a final project schedule that the property owner will approve. Summit Ridge is actively developing battery storage projects around Long Island, including in Southold and adjacent jurisdictions. Engineering Once due diligence is complete,SRE will develop detailed engineering design documents for the projects. The final design for each project will adhere to all federal, state, and local codes, and facility requirements. A third-party engineer will perform quality assurance and verify all project designs. SRE will ensure that the system meets these codes and certifications: • Local codes, zoning laws, and all local authorities having jurisdiction • Local utility's technical requirements for interconnection with solar energy systems • All applicable Renewable Energy-specific standards set forth by the Solar America Board for Codes and Standards • IEEE 1547: "Standard for Interconnecting Distributed Resources with Electric Power" • IEEE 519: "Recommended Practices and Requirements for Harmonic Control in Electric Power Systems" • IEC- 21561 UL-1741: "Inverters, Converters, and Interconnection System Equipment for Use with Distributed Energy Resources" including but not limited to: o Over and under voltage trip points and times o Over and under frequency trip points and time o Total harmonic distortion control IEEE 519 10 SUMMIT RIDGE EN IRGY o Anti-islanding protecIion o DC ground-fault detection and interruption , • UL-1703: "Flat-Plate Photovoltaic Modules and Panels' • All products shall be UL listed or certified by other Nationally Recognized Testing Laboratory(NRTL)whenever possible. • NFPA 70: National Electrical Code 2011 o Article 690, Solar Electric Systems o Article 705, Interconnected Electrical Power Production Sources • ANSI C12.1: "Code for Electricity Metering" • FCC Electromagnetic Interference Part 15 A& B • DC system grounding to comply with NEC 2011, article 690 (C) • Any additional requirements of PSEG-LI Where required, designs will be "stamped" by a third-party professional engineer, who will be licensed in NY. Once the design is stamped, permits and interconnection applications will be submitted. SRE anticipates having to complete structural drawings and electrical three-line drawings for the system, both stamped by a NY-licensed Professional Engineer, in addition to a site plan and stormwater management plan. Balance of system components shall include combiner boxes, DC disconnect and AC disconnect switches. All shall be heavy duty, UL listed and housed in a NEMA-rated enclosure as required by the installation hardware. SRE shall, use appropriate signage, including laminated diagrams including AC and DC disconnect locations and electrical one-line diagrams of the system; these signs shall be mounted in appropriate and visible locations. Each DC disconnect shall be labeled with label material described above for operating DC current(Imp), system operating DC voltage (Vmp), maximum string DC voltage (Voc), and maximum system DC current (Isc). The system interconnection point shall be labeled as such indicating the system AC voltage, current, and the array rating in Watts DC and Watts AC. Interconnection, Permitting & Other Third-Party Approvals SRE will submit applications and obtain all necessary third-party approvals prior to constructing the system, at its expense. This is included but not limited to utility interconnection and all permits required by local authorities having jurisdiction. Timing of these approval is vital to maintaining the project schedule. SRE has extensive experience permitting in New York, including navigating the State Environmental Quality Review(SEQR)process and has engaged local firms to best facilitate the discretionary permit process. II 11 SUMMIT RIDGE ENERGY SRE will provide, at a minimum, the follow ng to the AHJs: f • Manufacturer's data sheets on all products being used including storage and handling requirements and recommendations, and installation methods and manuals. • Manufacturer-detailed testing and commissioning procedures. • Full Site Plan and Design Drawings with the exact locations of all installed hardware o Electrical designs featuring wiring diagrams for photovoltaic array and interconnecting hardware. o Structural designs detailing exact position of all equipment used for structural support of any system components As of today, the Town of Southold's zoning ordinances do not allow for battery energy storage systems. Thus, in order for the project to proceed following award, SRE would look to the Planning Board to grant a special exception to code or draft a zoning law amendment that would allow for the construction of the battery energy storage system. SRE has assisted nearby jurisdictions with similar processes and would be happy to help here as well. Below is an indicative project development schedule for the landfill project. The likely durations of each item are shown in parentheses. SRE expects to be able to issue Notice to Proceed and move to begin construction in 2021 as long as the site lease can be signed in a reasonable timeframe after the results of the RFP are announced. • September 2020 - Environmental Due Diligence and Interconnection Application 0 USFWS, SHPO, USACE Consultation o Wetland Delineation (2 weeks) o Solar Glare Hazard Analysis (1 day) o Phase 1 Environmental Suitability Assessment (2 weeks) o Boundary and Topographic Survey (2 weeks) • November 2020 — NY Department of Environmental Conservation (DEC) Use Modification Request(2 months) • November 2020 — Town of Southold Zoning Application and State Environmental Quality Review Application (4 months) February 2021 - DEC Post Closure Management Application (2 months) SRE will manage the interconnection process with Public Service Enterprise Group — Long Island (PSEG-LI)following its Standard Interconnection Requirements (SIR). SRE has already 12 SUMMIT RIDGE F NERGY submitted an interconnection pre-application with ITSEG-LI and received the results, which are favorable for interconnecting the proposed solar and storage system. These results are attached to this bid as Exhibit A. Once the lease is executed, SRE will submit a formal interconnection application to PSEG-LI to begin the interconnection review process. SRE would except to receive preliminary results indicating the need for a Coordinated Electrical System Impact Review (CESIR) and would subsequently pay PSEG-LI to begin that study, which takes as long as 60 business days. Once in hand, the CESIR would include the interconnection cost for the system —this would confirm the viability of the project. From that point, SRE would cut the check and place a 25% deposit, which would retain the project's interconnection position and indicate to PSEG-LI that it intends to proceed with development. SRE has assumed that PSEG-LI would charge $0.10IWdc to interconnect the system to the grid. Procurement & Construction In engineering, developing, and constructing these projects, SRE will rely heavily on decades of combined experience gained by its staff in the industry, and the experience of its network of contractors. SRE will contract with a well-qualified Engineering, Procurement, and Construction (EPC) partner, who will construct the system. As the developer, SRE will manage the EPC throughout the construction process, ensuring that the project schedule is adhered to daily. SRE will procure major equipment via turnkey EPC agreements with its local EPC partner. SRE is largely agnostic as to equipment manufacturers. If the equipment meets investor's technical specifications, SRE will work with its EPC partners to choose the most appropriate solution based on long-term performance, financial strength, quality of warranty, and economics to support the project. SRE's contractors will pay prevailing wages to their employees and follow OSHA regulations, including but not limited standard 1926 Safety and Health Regulations for Construction.All work shall be performed by skilled workers regularly engaged and specializing in the installation of the Systems. SRE shall employ at least one North American Board of Certified Energy Practitioners (NABCEP) Certified Photovoltaic Installer to supervise the installation. SRE will take special care during installation to ensure that the installed system does not prevent operation and maintenance of the cap, including gas venting and storm water runoff into collection basins via swales. Summit Ridge proposes installing a ballasted solar array, in which the solar panels are attached to metal racking that is anchored using ballast blocks, rather than steel piles, in order to maintain the integrity of the landfill cap and not disturb the existing drainage, venting and monitoring systems on site. Conduit runs, combiner boxes and other connections made atop the cap will be installed with protective membrane to ensure that 13 SUMMIT RIDGE ENERGY there is cushion. Our installers will use care when staging rnd installing equipment to prevent any"st9cking"of equipment, or exceed any weight limits, that could potentially harm the landfill cap or damage the existing slope of the site. Commissioning When construction of the system is complete, commissioning of projects will be performed by multiple parties during the course of any given project, first by the EPC of record in most cases. Third-party commissioning services will, in some cases, be performed by the designated O&M ("Operations & Maintenance") contractor foreach project. In either event, SRE will vet the qualifications of the commissioning firm and ensure that they adhere to industry standard. SRE finds alignment in having the designated O&M perform the third-party commissioning, as it also helps enable the handover process from EPC to O&M. This keeps the onus of quality on the EPC contractor while giving the O&M contractor an opportunity to adopt the asset in a manner that creates long-term buy-in. In any case, SRE will conduct an in-depth inspection to ensure that the system is installed in a workmanlike manner and consistent with industry practice, applicable codes and standards and operation requirements. SRE shall maintain a photo-record of the installation and major components, including modules, inverters, transformers and combiners. Photos will show connections within all installed enclosures. Tests shall include, but not be limited to, • Test each system string for Voc and Isc under good, clear weather conditions and follow the manufacturer's instructions when conducting tests • Grounding: Resistance between ground connection and accessible conductive part should be less than 0.1 Ohm, tested with 25 A current. • Test each array for resistance to ground with a mega Ohm meter. An array with an insulation resistance which is below 1 mega Ohm at 500 VDC will be considered defective and the condition shall be corrected before conducting inverter operational tests. • Inverter operational tests The Commissioning Team shall consist of representatives from the following parties involved in the design and construction of the system: Facility Manager or representative, Contractor representative, Client representative and Client's engineer SRE shall provide an operation and maintenance manual for the system to the Town of Southold, which shall include: • All electrical, structural, and other as-built plans developed for the project, including originals of those stamped by Professional Engineers 14 SUMMIT RIDGE ENIERGY • Copies o the required submittals p • All rodIt cut sheets • A plan for ongoing maintenance of the system in order to achieve a minimum 25 year design life including recommended procedures to on-site staff, recommendations on the frequency of regular system checkups, and what should be included in such check-ups • Troubleshooting procedures • Emergency shut-down procedures • A copy of all start-up tests described herein • A copy of the photo record described herein • A copy of the written acceptance letter from Town of Southold • Written PSEG-LI approval of the system • Product warranties for all system components • SRE and installer contact information. Operations & Maintenance Once the system is operational, Summit Ridge Energy will operate and maintain the system. It will retain a third-party O&M provider to continuously monitor operating systems through online data acquisition systems using automated notifications software. SRE will coordinate all onsite diagnostics and maintenance with local maintenance providers or supporting contractors as needed. SRE shall make regularly scheduled maintenance visits to the site at least twice per year to carry out all manufacturer-recommended maintenance and prudent industry practices to keep the system fully functioning. Specifically, SRE will ensure that no damage to the landfill, landfill membrane, landfill equipment, erosion of topsoil, or other possible issues are caused by the system's installation. O&M services will exceed that which is required to meet the warranty requirements for the system. SRE will maintain a single general-purpose email address and phone number that property owners and customers can use to directly contact the company for support and emergencies. SRE will ensure that all system components are warrantied for their life spans. System components will carry a minimum twenty-five (25) year warranty, with the exception of the inverter which has a ten (10) year warranty and will be replaced every ten years. SRE will ensure that the HVAC systems for the battery storage system are maintained and assumes that a full replacement of the HVAC components will happen in year 10. 15 SUMMIT RIDGE ENERGY PROJECT PRO�,OSAL To maximize value for the Town of Southold, Summit Ridge recommends a ground lease that allows it to develop a community solar project paired with battery storage at the Southold Landfill. Summit Ridge would develop, build, own and maintain a solar array, with a DC- coupled battery system, that would be interconnected directly to Public Service Enterprise Group—Long Island's (PSEG-LI) utility network. The exported electricity would generate bill credits which would then be sold to households on Long Island through New York's community distributed generation (CDG) program, including the residents of Southold and neighboring jurisdictions. Unlike participation in the feed-in-tariff(FIT) programs run by PSEG-LI which is run as a reverse auction, with winners and losers, the CDG program in NY is an open program and there is no risk to the Town of Southold. SRE offers to post a performance bond to cover its obligations hereunder, as shown in Exhibit D. Lease Offer SRE offers the Town of Southold monthly lease payments for acres occupied by the solar array and battery storage system. This lease term is 25 years with two 5-year extensions at lessee's unilateral election. At the end of the second extension term, the Town of Southold has the option to further extend the lease or, at the Town's direction, remove and decommission the system. SRE will hold insurance throughout the entire lease term, inclusive of any extensions. This lease arrangement is common in many of the markets in which Summit Ridge operates and would be zero cost to the Town of Southold. Following execution, Summit Ridge would pay$8,000 per year for a 24-month option period to allow for interconnection and development i3 work; once the project is ready for construction, Summit Ridge would exercise the lease and begin making lease payments until the end of the term. In assembling its offer, SRE has assumed that the Town of Southold would agree to abate personal and real property taxes for the solar and storage system through the execution of a minimum 15-year payment in lieu of taxes (PILOT) agreement. This allows SRE to maximize its lease rate offer, rather than have to balance payments to the town between the lease payments and any tax payments. SRE has attached a form of its site lease agreement, attached to this proposal as Exhibit B. Below is its offer for the lease rate for the combined solar+storage system. i� 16 SUMMIT RIDGE ENERGY Land Lease Rate $335,000 /year r Annual Escalator 1.5% Lease Term 25 years with two 5-year extensions 35-Year Cumulative Lease $15,273,349 Revenue Table 2. Lease Terms 17 SUMMIT RIDGE ENERGY 1 $335,000 $335,000 2 $340,025 $675,025 3 $345,125 $1,020,150 4 $350,302 $1,370,453 5 $355,557 $1,726,009 6 $360,890 $2,086,900 7 $366,303 $2,453,203 8 $371,798 $2,825,001 9 $377,375 $3,202,376 10 $383,036 $3,585,412 11 $388,781 $3,974,193 12 $394,613 $4,368,806 13 $400,532 $4,769,338 14 $406,540 $5,175,878 15 $412,638 $5,588,516 16 $418,828 $6,007,344 17 $425,110 $6,432,454 18 $431,487 $6,863,941 19 $437,959 $7,301,900 20 $444,528 $7,746,428 21 $451,196 $8,197,625 22 $457,964 $8,655,589 23 $464,834 $9,120,423 24 $471,806 $9,592,229 25 $478,883 $10,071,113 26 $486,067 $10,557,180 27 $493,358 $11,050,537 28 $500,758 $11,551,295 29 $508,269 $12,059,565 30 $515,893 $12,575,458 31 $523,632 $13,099,090 32 $531,486 $13,630,576 33 $539,459 $14,170,035 34 $547,551 $14,717,586 35 $555,764 `-$15,273,349 Table 3; Lease revenge projection based on proposed system size 18 SUMMIT FRIDGE ENi-RGY Solar System Design Summit Ridge proposes installing a ballasted solar array covering 21 acres atop the landfill cap. The ballasted design, in which the solar panels are attached to metal racking that is anchored using ballast blocks, rather than steel piles, maintains the integrity of the landfill cap and without disturbing the existing drainage, venting and monitoring systems on site. SRE will consider RBI, Schletter, and Solar FiexRack in its designs. Conduit runs, combiner boxes and other connections made atop the cap will be installed with protective membrane to ensure that there is cushion. Our installers will use care when staging and installing equipment to prevent any stacking of equipment, or exceed any weight limits, that could potentially harm the landfill cap or damage the existing slope of the site. SRE performed a slope analysis of the property based on publicly available GIS data, shown below. Additionally, SRE reached out to Christopher F. Dwyer of L.K. McLean Associates, P.C., who provided SRE with site-specific topology information. SRE will likely not site panels in areas where the slope is in excess of 10%, or, alternatively, SRE will work with its racking vendor to shorten the tables for those arrays in order to accommodate the site topology. SRE is not proposing to site solar panels where the site topology cannot accommodate them. ra4��,: id°" #�zrs`�.;.i' ��`"� 'r "�' �3r - ""'' ' ,.• '„ ,� � "tea t' � Apt- „ :" ��� * �r�,'"' r O `. OF - 3 nta`v r # -MR, :-�" � ^;�`uq �"�,.�k{Fz Wo �g.�' N ; aY„x '' = .y %�°(•�. „r: 3 '" 1y`+ , yf � S s' ,�j g s. c qtr-'�'a`.: 46 ani <F.'� , 4,5 .» ��, �R�•-•gr � HIS, m���F -"� ki �,,x�r`-s '��"r, ��• w.ti`'�'h#��,,`�<t,�'Y` ".+�>•`: `,�� a-.,t..�x -� `M � - s�r�'{`.�;, ' s=- ki =„if�� "r "�'tel`n`�Xq ',§_"M au x� ilk- Figure 2 Slope Analysis 19 SUMMIT RIDGE ENERGY SIRE �roposes to install 420 Watt bifacial modules that poduce electricity on both sides of the panel'. The rows of panels will be spaced roughly 14 fee apart, resulting in a.rough coverage ratio of 48%. Modules will be tilted 25 degrees in order to maximize production. SIRE proposes to locate its solar equipment atop the landfill and run conduit to equipment located off-cap in the area labeled "Battery Storage System" on the site plan. The total space required here for the inverter, transformer, switchgear and battery system will not exceed 3,000 square feet. Storage System Design SIRE is an active developer and financier of battery storage projects in the northeast, with a portfolio of development assets totaling 120 MWh in NY and 150 MWh in MA. Given the state's commitment to deploying battery storage to better balance the grid and optimize performance of wind and solar, SIRE proposes to site a 1 MW, 4 hour or 4 MWh DC-coupled battery at the Landfill. This DC-coupled battery storage system will "firm"the output of the solar array, capturing production that would have otherwise been lost to clipping and augmenting the solar array's output to maximize production during the grid's peak summer hours. This will maximize the system's benefit to the power grid by focusing exported electricity during hours that the grid is most stressed, reducing the need for new ratepayer-funded grid infrastructure improvements. In order to take advantage of the federal investment tax credit, the battery system will charge no less than 75% from the solar array's output— but SIRE plans to have it charge 100% from the solar array output. SIRE plans to take advantage of the NYSERDA incentive for battery energy storage systems on Long Island. Currently, that incentive stands at$250/kWh. SIRE can reserve incentives once it has received permits to build the system, completed the SEQRA process and paid its 25% interconnection deposit to the utility. Below is our proposed system size based on a preliminary design. SIRE is confident that it can achieve this system capacity, given the information accessible to it at the time of this bid. System Type Fixed Tilt, Ballasted racking DC-coupled battery storage Solar System Size DC 4,857 Solar System Size AC 3,500 II 20 SUMMIT RIDGF ENERGY Storage System Size 4 MWh Solar Panel Size and Type 420 W Bifacial modules Table 4: System Design SRE has included a full site plan below as well as in Exhibit E. SIRE looks forward to discussing the design with the Town to optimize solar array and battery placement and begin development on the property. c4l AO- Q W, *t VINW, W 0 FRI 4 41" "1 A -,fto 7F W� o VO All iO O"i NOiia,, -A g q:7 X35 M NO W 11 Z ""Fol R., Kao-, R"- "7K gi ilk I Iry V,§ A M*t�, ; VR WRI, AAW WIN, M V V NOW 4,- F A-1 r rte: 'ER�,W Figure 3: Aerial view and panel layout for proposed landfill system 21 SUMMIT RIDGE ENERGY Exhibit A: PS G-LI Interconnection Pre-Application Results 22 APPENDIX D Appendix;D-Pre-Application Report PRE-APPLICATIPh REPORT FOR THE CONNECTION OF PARALLLE� GENERATION EQUIPMENT TO LIPA's DISTRIBUTION SYSTEM DG Ptoiec�t_Information: (Provided to Utility by Applicant) Customer wane SRE Solar Origination 2, LLC Location ofProiect: (address and1or GPS Coordinates) 6155 Cox Ln,Cutchogue,NY 11935 UG technolca t)Te solar farm-PV only Y DG fuel source;confiatration PV Proposed project size in OV AC) 5.00 Mac Date ofPre-A plication Request 1/23/20 :Pre-p likatiotri Re otl:(Provided to Appyeant by Utility-1,0 Business Days) _— O erating voltage of closest distribution line 1 ig Phasing,at site 3-Phase A , roxintate distance to -Phase(if only l or?phases nearby) N/A Circuit capacity r lA Norm: 517A; Emer: 600A Fault current availability.if readily obtained 13,242A Circuit peak, load for the previous calendar =ear 7.2MW --- Circuit nunimutii load for the previous calendar year JMDL- 69.2A; ML- 62.7A Approximate distance (miles)between serving substation and project site 2.4 -- Number of;substation banks 2 Banks 2A+2B: Norm - 17.6; LTE - 21.2; STE - 25 I otai substation bank capacity(M- W) Bank 1: Norm - 17; LTE - 19.6; STE - 24.1 Total substation peak load Aggregate e-dsting distributed generation on the circuit(BN 593.29kW Aggregate queued distributed generation oil the circuit(VW) 167.50kW 49 SUMMIT RIDGE ENERGY Exhibit B: Form of Site Loase Agreement 23 SOLAR LEAJE AGREEMENT This SOLAR LEASE AGREEMENT(this"Agreement") is made, dated and effective as of the Effective Date(defined below),by and between Landowner(defined below,)and SRE Solar Origination 2,LLC, a Delaware limited liability company("Lessee"). 1. Basic Provisions. The following terms used in this Agreement have the meanings set forth below: 1.1. "Lando-vvnef 1.2. "Property" The real property consisting of the parcel(s)located in County, State of ("State"),more particularly described in Exhibit A,together with any improvements located thereon and rights, benefits and easements appurtenant thereto. 1.3 "Leased Premises" The real property consisting of approximately_acres,more particularly described in Exhibit B,together Mth all appurtenant rights and easements. The exact acreage of Leased Premises will be determined during the Development Period. 1.4. "Adjacent Any portion of the Property not included in the Leased Premises Property" 1.5. "Effective Date" 2020 1.6. "Development The period cornmencing,on the Effective Date and,unless earlier Period" terminated pursuant to Section 5.3, expiring five hundred fifty(550) days after the Effective Date,subject to two (2)twelve(12)month extensions(see Section 5.1 1.7. "Development $ per year,payable on a quarterly basis. See Section 6.1. Period hent', 1.8. "Operations The period commencing on the date,as notified by Lessee to Period" Landowner no fewer than ten(10)days in advance,on which Lessee intends to commence construction-related activities at,or will otherwise take control over,the Leased Premises (the"Operations Period Commencement Date")and expiring on the twenty-fifth (25th)anniversary of the Operations Period Commencement Date, subject to Lessee's right to extend the Operations Period for two(2) five(5)-year extension terms(see Section 5.2 BTM,767584v2 1.9. "Operations Period A payment of$ per acre of Leased Premises per year, Rent" payable on a quarterly bads, escalating at a rate of_per annum _ during the O orations Pe iod. See Section 6.2. 1.10 "Signing Bonus" A one-time signing bonus in the amount of$ for the purpose of reimbursement of attorneys' fees and any other costs or expenses incurred by Landowner in connection with review and negotiation of this Agreement. 2. Grant of Lease. For the Term (defined in Section S) Landowner hereby leases the exclusive occupancy of the Leased Premises to Lessee and its successors and assigns, and Lessee hereby leases from Landowner and its successors and assigns the exclusive occupancy of the Leased Premises, in accordance with the terms and conditions of this Agreement. 3. Purpose of Lease, Permitted Uses: Grant of Easements. 3.1 Purpose of Lease. Lessee leases the Leased Premises for the purpose of constructing,operating,maintaining,repairing,replacing,and removing all or any part of the Solar Power Facilities(defined in Section 3.2.2 below)and any improvements that may be necessary to construct, maintain and repair any new and existing roadways and other means of ingress and egress over,across and along the Adjacent Property,including paving or surfacing of the roadways with asphalt,gravel or other roadway materials,installation of road signs and the construction and installation of culverts, bridges, drainage ditches, gates, cattle guards and similar structures and facilities(the".Roadway Improvements") located on the Leased Premises. Throughout the term of this Agreement,Lessee shall have the sole and exclusive rights to use the Leased Premises for such purposes and any and all other activities related to such purposes. 3.2 Permitted Uses of the Property by Lessee. The rights granted to Lessee in this Agreement permit Lessee,and its agents,contractors and employees,to do the following: 3.2.1 Extract soil samples, perform geotechnical tests, and conduct such other tests, studies, inspections and analyses on the Leased Premises as Lessee deems necessary, useful or appropriate. i 3.2.2 Construct, erect, install, operate, maintain, reinstall, enhance, replace, relocate and remove, from time to time, the Roadway Improvements and the following "Solar Power Facilities"on the Leased Premises during the Operations Period: (a) meteorological and solar measuring equipment, including, but not limited to, insolation monitoring towers and all necessary and proper appliances and fixtures for use in connection with said towers, to determine the feasibility of solar energy conversion on the Property,on adjacent property or elsewhere; (b) solar panels, inverters, steel racking, foundations and concrete pads, support structure, footings, anchors, fences and other fixtures and facilities, maintenance, security, office and/or guest facilities, staging areas for the assembly of equipment, BTM,767584L2 2 power generation facilities to be operated in conjunction with large solar installations, control building,laydo%,,m areas, crane pads, and related facilities and a uipment; (c) electrical wires and cables required for the gathering and transmission of electrical energy and/or for communication purposes, which may be placed overhead on appurtenant support structures or underground, and one or more substations or interconnection or switching facilities from which Lessee may interconnect to a utility transmission system or the transmission system of another purchaser of electrical energy (collectively, "Transmission Facilities"), together with the appropriate rights of way on, along, in and under the Property; and (d) any other improvements,including Roadway Improvements, facilities, machinery and equipment that Lessee reasonably determines are necessary, useful or appropriate to accomplish any of the foregoing. Items (a) — (d) collectively, the "Improvements"). Notwithstanding anything to the contrary herein,Lessee shall be entitled to determine the size,type,manufacturer and exact location of the Solar Power Facilities to be located upon the Leased Premises in its sole and absolute discretion. Lessee may, at its sole and absolute discretion, use the Leased Premises for one consolidated project or Lessee may elect to divide the Leased Premises into multiple phases or projects.Lessee may exercise its right to use all or any part of the Leased Premises as and when Lessee deems it necessary or advisable to do so to perform the activities for which this right is granted, including, without limitation, staging areas and parking for Lessee's employees. 3.2.3 Remove,trim,prune,top or otherwise control the growth of any tree, shrub,plant or other vegetation on or that intrudes(or upon maturity could intrude)into the Leased Premises, including, without limitation, anything that could obstruct, interfere with or impair the Solar Power Facilities or the intended uses of the Leased Premises by Lessee under this Agreement. 3.2.4 Excavate, grade, level and otherwise modify the Leased Premises, all in Lessee's sole and absolute discretion as Lessee may deem desirable or necessary in connection with Lessee's intended uses of the Leased Premises under this Agreement(subject to the restoration obligations set forth in Section 7.5). Landowner authorizes Lessee, at Lessee's sole expense, to take reasonable safety and security measures to reduce the risk of damage to the Solar Power Facilities or the risk that the Solar Power Facilities will cause damage, injury or death to people, livestock, other animals and property, including,without limitation,fencing around the perimeter of the Solar Power Facilities as Lessee may deem necessary or appropriate to secure or enclose the same, without unduly burdening Landowner's use of the Property. 3.3 Grant of Easements. In addition to and in connection with the leasehold interest granted pursuant to Section 2 and the permitted uses provided in Section 3.2, during the Operations Period Landowner hereby grants and conveys to Lessee and its successors and assigns BTM 767584v2 3 the following easements (collectively, the "Easements") on, about, above, over, under, through and across any of the Adjacent Property: 3.3.1 The exclusive easement to the free and unobstructed insolation of solar energy over the entirety of the horizontal space and the entirety of the vertical air space lying above the surface of that portion of the Adjacent Property for the benefit of the Leased Premises (the "Solar Easement"), provided Landowner shall have the continued right to use the Adjacent Property exclusive of the Leased Premises for any uses existing as of the Effective Date and any new uses which do not interfere with Lessee's use of the Leased Premises. Landowner shall not at any time knowingly engage in any activity on the Adjacent Property or any other neighboring property owned by Landowner that interferes with the sunlight direction over any portion of the Leased Premises; cause a decrease in the output or efficiency of the Solar Power Facilities; or otherwise interfere with Lessee's operation of the Solar Power Facilities or exercise of any rights granted in this Agreement (collectively, an "Interference"). Notwithstanding the foregoing, nothing in this Section shall prevent Landowner or its agents and lessees from conducting their normal activities on the Adjacent Property or any other neighboring property owned by Landowner. Lessee acknowledges that it has reviewed Landowner's current agricultural operations, including location of trees in the area of the Adjacent Property and finds that it will make every effort to proceed with development such that the current use does not and will not result in any Interference as defined herein and thus no current activity of Landowner on the Adjacent Property will be prohibited pursuant to the terms of this Section. Lessee's proposed plan of development and calculation of acreage of the Leased Premises will include sufficient area for the Solar Power Facilities, including area surrounding the Solar Power Facilities reasonably sufficient to avoid Interference from the Adjacent Property. 3.3.2 ["The non-exclusive easement to use the Property for Lessee's construction, installation, operation,use,maintenance,repair or replacement of the Transmission Facilities, including an easement, to be located at a mutually acceptable location on a portion of the Adjacent Property, to be used for temporary (i) storage and staging of tools, materials and equipment; (ii) construction laydown; (iii) parking of construction crew vehicles and temporary construction trailers; (iv) vehicular and pedestrian access and access for rigging and material handling; and (v) construction or installation of other facilities reasonably necessary to construct, erect, install, expand, modify or remove the Solar Power Facilities (the "Construction Easement"). Lessee shall return the are of the Construction Easement to the condition existing immediately prior to such use by Lessee to the extent reasonably practical (reasonable wear and tear, casualty and condemnation excepted).] [To the extent Lessee requires portions of the Adjacent Property outside of the Leased Premises in order to perform any of the activities for constriction of the Solar Power Facilities, Lessee and Landowner agree to enter into a separate written agreement, or agreements as the case may be, which shall be negotiated in good faith between the Parties to govern the terms of Lessee's use of said portions of the Adjacent Property.] 3.3.3 The right to have unobstructed vehicular and pedestrian access and ingress to and egress for from the Solar Power Facilities over and across the Adjacent Property by means of any existing roads and lanes thereon (the "Access Easement"). To the extent that BTM 76758412 4 Roadwav Improvements and access may be required by Lessee over the Adjacent Property, prior to the construction of ant} Roadway Improvements on the Adjacent Property a prior to the commencement of the Operations Period, Lessee shall provide a proposed plan of development and survey showing the location of the Access Easement more specifically, and Lessee and Landowner agree to amend this Agreement accordingly.Lessee shall, at its sole cost and expense, repair any damage done to Roadway Improvements tivhich result from use by Lessee, its agents, servants or employees. Such Roadway Improvements shall be maintained in the condition necessary for use by Lessee's equipment,and with regard to existing roads,shall be maintained in at least the condition that existed prior to Lessee's first use of such Roadway Improvements,_ ordinary wear and tear excepted. 3.3.4 The non-exclusive easement over the Adjacent Property, at such locations as Lessee and Landowner shall reasonably determine. to construct, use and maintain signs, fences,gates(whether locked or unlocked)and other safety and protection facilities around or about the Solar Power Facilities and/or to restrict access to portions of the Property around or about any of the Transmission Facilities. 3.3.5 The non-exclusive easement to enter the Adjacent Property and to remove, trim, prune, top or otherwise control thegrowth of any tree, shrub, plant or other vegetation on or that intrudes (or upon maturity could intrude) into the Leased Premises,or could obstruct, interfere with or impair the Solar Power Facilities or the intended uses of the Leased Premises by Lessee under this Agreement. The Easements granted by Landowner in this Agreement are easements in gross, and the easements and other rights granted to Lessee herein are for the benefit of Lessee and its successors and assigns, as owner of the Solar Power Facilities. Notwithstanding the fact that the Easements, if any.are non-exclusive, any concurrent uses of the Easement by Landowner or any third parties shall not interfere with Lessee's rights granted herein. 3.4 Survival of Covenants. The covenants, conditions, rights and restrictions in favor of Lessee pursuant to this Agreement shall not be deemed invalid or inoperative or otherwise be disregarded while any portion of the Solar Power Facilities on the Leased Premises or other property are under development, being replaced,or operational. 4. Development Period Obligations. Within five (5) days following the Effective Date, Landowner shall make available to Lessee copies of all leases, contracts, easements, environmental, geotechnical and other site assessments, surveys, plans and other such records of Landowner which in any way relate to the Property. During the Development Period,Lessee may investigate and determine the feasibility of obtaining entitlements and agreements for Lessee's proposed solar power development, including having a survey of the Property prepared by a licensed surveyor (the ``Sun ey") and/or a preliminary title report of the Property (the "Title Report'). During the Development Period Lessee shall have the right of ingress and egress over the Adjacent Property to perform investigations of the Property. The acreage that will be required from the Property to construct the Solar Power Facilities will be determined after completion of BTM 767584v2 5 inspection,testing, and studying of the Property,after which Lessee shall deliver to Landowner a proposed plan of development and 4 preliminary calculation of the acreage required for the geased Premises, which may be less acreage than the total acreage comprising the Property and which will be included as Exhibit B to this Agreement. Landowner shall amend this Agreement to revise the description on Exhibit B and the acreage of the Leased Premises prior to or concurrent with the Operations Period Commencement Date. [Landowner acknowledges that Exhibit B as of the Effective Date shows a preliminary depiction of the Leased Premises.] 4.1 Survey. During the Development Period Landowner shall assist and fully cooperate with Lessee in complying with or obtaining any land use permits and approvals, tax- incentive or tax-abatement program approvals,building permits, environmental impact reviews or any other approvals, consents,orders or authorizations required or deemed desirable by Lessee in connection with the development, financing, construction, installation, replacement, relocation, maintenance;operation or removal of the Solar Power Facilities,including execution and filing of applications for such approvals,consents,orders or authorizations and delivery of information and documentation related thereto, and execution, if required,of any orders or conditions of approval. 4.2 Title Report. During the Development Period if Lessee, in its sole discretion,determines that the existence,use,operation,implementation or exercise of any matters identified by the Title Report or Survey could materially delay, interfere with, impair or prevent Lessee's development, operation or financing of the solar energy project,then Lessee may notify Landowner of such issues and Landowner shall cooperate with Lessee in efforts to obtain a release, subordination, non-disturbance agreement, consent or other agreement (in a form reasonably acceptable to Lessee)from the holder(s)of such rights as set forth in Section 10.3 herein. 5. Development Period Term; Operations Period Term; Renewal Terms. Subject to Lessee's rights to terminate this Agreement set forth in Section 5.3, Lessee's rights under this Agreement will continue throughout the Development Period and the Operations Period (collectively, the "Term"); provided, that nothing expressly stated or implied in this Agreement or represented to Landowner shall be construed as requiring Lessee to: (i)undertake construction, installation or operation of any Solar Power Facilities on the Leased Premises;(ii)generate or sell any minimum or maximum amount of solar energy from the Leased Premises; or (iii) continue operations of any Solar Power Facilities from time to time located on the Leased Premises. 5.1 Development Period. During the Development Period, Lessee or any Permitted Assignee may, by notice to Landowner received no later than thirty (30) days prior to the expiration of the Development Period, elect to extend the term of the Development Period for up to two additional twelve (12) month periods, the first commencing upon either the thirty-six (36) month anniversary of the Effective Date. and the second on the forty-eight (48) month anniversary of the Effective Date,as applicable. 5.2 Operations Period. Lessee shall have the option to commence the term of Operation Period by providing Landowner written notice not fewer than ten(10)days prior to the expiration of the Development Period, such notice to be effective on the earlier of the date Lessee BTM 767584v2 6 commences construction as provided in such notice or the expiration of the Development Period (the"Operations Period Commences ent Date"). The Operations Period shall commence on the Operations Period Commencement Dgte and, unless validly extended, expire on the twenty-fi�th (251) anniversary of the Operations Period Commencement Date. During the term of the Operations Period, Lessee or an), Permitted Assignee may. by notice to Landowner received no later than ninety(90)days prior to the expiration of the Operations Period,elect to extend the term of the Operations Period for up top two periods of up to five(5)years each. 5.3 Termination Rights. (a) At any time prior to the Operations Period Commencement Date, Lessee shall have the right to terminate this Agreement and its interests in or under this Agreement, as to all or any part of the Property, effective upon seven (7) days written notice to Landowner. Upon such termination,except for rights and obligations that expressly survive termination as set forth herein,neither party shall have any further liability under this Agreement as to the portion of the Property so terminated. If such termination is as to only part of the Property,this Agreement shall remain in effect as to the remainder of the Property. (b) Lessee shall also have the right to terminate this Agreement and/or its interests in or under this Agreement,as to all or any part of the Property,at any time during the Operations Period(i) if Lessee is unable to renew any license deemed necessary by Lessee for the Solar Power Facilities, in which event this Agreement shall terminate on thirty (30) days' notice from Lessee;(ii)if Lessee is unable to obtain to renew any easement deemed necessary by Lessee for the Solar Power Facilities from the owners of any land not owned by Landowner, in which event this Agreement shall terminate upon thirty (30) days' notice from Lessee; and/or(iii) if for any reason the operation of the Solar Power Facilities is no longer economical for Lessee,in which event this Agreement shall expire on the date set forth in Lessee's termination notice. 5.4 Actions on Expiration or Earlier Termination. Upon expiration of the Term or earlier termination of this Agreement, whether as to the entire Property, the Leased Premises or Easements, Lessee shall,upon written request by Landowner, (a)execute and record the documents referenced in Section 15.4 with respect to the Property, Leased Premises or Easements,or to that part thereof as to which this Agreement has been terminated,and(b)remove all Solar Power Facilities from the Property,or the portion thereof as to which this Agreement was terminated,exclusive of any continuing right established pursuant to this Agreement to survive the term of this Agreement, and perform the restoration obligations set forth in Section 7.5. Landowner hereby grants to Lessee a license to enter upon the Property to perform the activities required to be performed by Lessee pursuant to Section 7.5, which license shall be effective commencing upon the date of termination or expiration of this Agreement and shall continue for one hundred eighty (l 80)days thereafter. 6. Payments. During the Term Lessee will pay Landowner the following amounts: 6.1 Development Period Rent. During the Development Period Lessee shall pay Development Period Rent to Landowner as follows: BIN 767584v2 7 6.1.1 Within fifteen(11)business days of the Effective Date,Lessee shall pay Landowner the(i) Signing Bonus and(ii)Development Period Rent in the amount set forth in Section 1.7 for the first calendar quarter of the Development Period, or if less than a frill calendar quarter,Development Period Rent prorated based on the number of days in that calendar quarter. 6.1.2 Beginning on the first day of the first full calendar quarter of the Development Period following the first calendar quarter of the Development Period and throughout the remainder of the Development Period. Lessee shall pay Landowner the Development Period Rent in the amount set forth in Section 1.7 for each calendar quarter within fifteen (15) days of the first day of each remaining calendar quarter during the Development Period. 6.2 Operations Period Rent. During the Operations Period Lessee shall pay Operations Period Rent to Landowner as follows: 6.2.1 Within fifteen (15) business days of the Operations Period Commencement Date, Lessee shall pay Landowner the first installment of the Operations Period Rent in the amount set forth in Section 1.9 for the first calendar quarter of the Operations Period, or if less than a full calendar quarter.Operations Period Rent prorated based on the number of days in that calendar quarter reduced by any payment made as a Development Period Rent for such calendar quarter. 6.2.2 Beginning on the first day of the first full calendar quarter of the Operations Period following the first calendar quarter of the Operations Period and throughout the remainder of the Operations Period, Lessee shall pay Landowner the Operations Period Rent in the amount set forth in Section 1.9 for the applicable calendar quarter within fifteen (15) days of the first day of each remaining calendar quarter during the Operations Period. 7. Ownership and Operation of Solar Power Facilities. 7.1 With the exception of Roadway Improvements, fences and gates that Landowner may elect to remain as property of Landowner at the end of the Term,any and all other Improvements constructed or installed on the Leased Premises and any other portion of the Property by or on behalf of Lessee specifically including the Solar Power Facilities are personal property within the meaning of Article 9 of the Uniform Commercial Code of the State of regardless of the manner of attachment to the Leased Premises and/or the Property and may be repaired, replaced, relocated, removed, added to or expanded upon by Lessee at any time during the Term. Landowner acknowledges and agrees that despite that such portions of the Improvements may be affixed to the Leased Premises and/or the Property, (i) Lessee, its affiliate or equipment lessor is the exclusive owner of the Improvements, (ii) the Improvements shall not be construed to be a fixture and (iii) Lessee or its affiliate or transferee is the exclusive owner of the electricity generated by the Improvements and the Environmental Attributes and Environmental Incentives of the Improvements. Landowner has no right, title or interest in the BTIVI 7675842 Improvements, the Environmental Attributes and the Environmental Incentives of the Improvements and hereby waives any and all rights it m have to a lien on the Improvements,the f-nvironniental Attributes and the Environmental Incentives of the Improvements and all rights of distraint and seizure for rent and all other lien rights, claims and demands of every kind against the Improvements, the Environmental Attributes and the Environmental Incentives of the Improvements. For purposes of this Agreement, the Improvements shall be deemed to include, without limitation,all output and products of all such property, including,without limitation,the electrical output, Environmental Attributes and Solar Incentives from or associated with the Improvements and Solar Operations and any other solar energy generation facility and related improvements, facilities and equipment constructed,installed or placed by Tenant on the Property, including any storage facilities. "Environmental Attributes"means, without limitation, any renewable energy credits or certificates, emissions reduction credits, emissions allowances, carbon trading credits, green tags and tradable renewable credits. "Environmental Incentives" means, without limitation,any tax credit,benefit or incentive for alternative energy expenditure established by any local, state or federal government for the production and storage of electricity, including,without limitation, any federal, state or local accelerated depreciation, installation or production-based incentives,investment tax credits and subsidies(including,without limitation credits under Section 45 of the Internal Revenue Code of 1986, as amended). 7.2 Operation of the Solar Power Facilities. The manner of operation of the Solar Power Facilities, including, but not limited to, decisions on when to conduct maintenance, is within the sole and absolute discretion of Lessee. 7.3 As-.Built Survey. Within ninety (90) days of the Solar Power Facilities being in commercial operation Lessee shall provide Landowner an"as-built"survey and"as-built" construction plan set of the Leased Premises and all Improvements thereon,which survey and set shall include the final acreage contained within the Leased Premises and shall serve as Exhibit C to this Agreement. For purposes of clarification, the surveyed boundaries of the Leased Premises shall not materially deviate from the approximate boundaries shown in Exhibit B without Landowner's prior written consent,not to be unreasonably withheld,conditioned or delayed. 7.4 Acknowledgment and Acceptance of Certain Effects. Landowner acknowledges and accepts that, during the Lease Term, the Property may be affected by certain non-life-threatening (to humans or livestock)visual, view,light,flicker,noise, shadow,vibration, electromagnetic,electrical and radio frequency interference,and other non-life-threatening effects attributable to the Solar Facility located on the Leased Premises and no such non-life-threatening effects shall be considered a violation of the terms of this Agreement. 7.5 Removal of the Solar Power Facilities. 7.5.1 Lessee shall have the right,in its sole and absolute discretion,at any time during the Term and for six (6)months after the expiration of the Term to remove the Solar Power Facilities or any part thereof and any related equipment from the Property at any time. BThr.767584v2 9 Upon expiration of the Operations Period or earlier termination of this Agreement, Lessee shall remove a'll of the Solar Power Facilities from the Property. At �he sole cost of Lessee, the soil surface of the Property shall be returned to substantially the same condition as existed on the date possession of the Property is delivered to Lessee; provided,however,that all concrete mountings shall be removed to a depth of at least three(3)feet below surface grade,and that any underground cabling or wiring at a depth of three (3) feet or greater may be abandoned in place if they are not a hazard and do not interfere with agricultural use or other consistent resource uses of the land. 7.5.2 If Lessee fails to remove such Solar Power Facilities within six (6) months of termination of this Agreement, Landowner may do so, in which case Lessee shall reimburse Landowner for reasonable and actual costs of removal incurred by Landowner, less any salvage value received by Landowner, within thirty (30) days after receipt of an invoice from Landowner. 7.5.3 Lessee shall at all times comply with any governmental requirements relating to decommissioning security (any "Decommissioning Ordinances"). Lessee shall,to the extent permissible by applicable law, make the surety bond funds required by any Decommissioning Ordinance, or any remaining portion thereof if applicable, accessible by Landowner for completion of the Lessee's obligation to remove the Solar Power Facilities in the event of noncompletion by Lessee or the local government. During the Term,upon written request of Landowner,Lessee shall provide Landowner with written evidence of Lessee's compliance with any Decommissioning Ordinance and the terms of this Section. 8. Taxes. During the Operations Period, in addition to the Operations Period Rent, Lessee shall pay all real property taxes and assessments that are levied against the Property that are attributable to the installation of the Solar Power Facilities on the Leased Premises or any reclassification of the Property as a result of the Solar Power Facilities or this Agreement, to the extent that such increase is not separately assessed as personal property to Lessee and paid directly by Lessee to the taxing authorities. Lessee,however, shall not be required to pay any increase in real property taxes that may be levied against the Property that is attributable to any sale or other transfer of the Property by Landowner or other change of ownership of the Property involving Landowner. Any such increase in real property taxes due to such a transfer or change of ownership in the Property shall remain the sole obligation of Landowner. Landowner shall submit the real property tax bill for the Property to Lessee within ten(10)days after Landowner receives the bill from the taxing authority. No later than ten (10) days prior to the due date of any installment, Lessee shall either (i) pay that portion of the real property taxes for the Property directly to the taxing authority and deliver written evidence thereof to Landowner, or(ii) deliver the sum due to Landowner for payment to the taxing authority, which Landowner shall do and deliver written evidence thereof to Lessee. In the event Landowner fails to pay the taxing authority, Lessee shall be entitled (but not obligated)to make payments in fulfillment of Landowner's obligations to the taxing authority, including any penalties for late payments, and may offset the amount of all such payments from amounts due Landowner under this Agreement. 8.1 Lessee's Right to Contest. Lessee shall have the right, upon prior written notice to Landowner, to contest or review the amount, applicability or validity of any real or BTM 7675842 10 personal property taxes which are assessed against the Property or separately assessed against the Solar Power Facilucted ties by one or more appropriate lawful proceedings,w �ich, if instituted, shall be diligently conby Lessee in good faith at its own cost and expense, and free of any expense to Landowner(all such expenses of Landowner will be paid by Lessce),and,if necessary, in the name of Landowner, and Landowner shall, upon the request of Lessee, execute all documents reasonably necessary to accomplish such contest or review; provided, however that Landowner shall not be required to assume any expenses, obligations or liabilities with respect thereto. In the event that Landowner determines that it would benefit from such a contest or review, which determination shall be made in Landowner's reasonable discretion, Lessee agrees to provide reasonable cooperation to Landowner in connection with such contest or review; provided,however,that Landowner shall pay all reasonable costs and expenses incurred by Lessee in providing such cooperation. Notwithstanding the foregoing, Lessee shall indemnify and hold Landowner harmless from and against all claims arising out of such contest or review conducted by Lessee. 8.2 Forfeiture of Properh, If at any time the Property or any part thereof is subject to forfeiture,or if Landowner shall be subject to any liability arising out of the nonpayment of real property or personal property taxes, Lessee shall, notwithstanding any pending contest or review, either pay such taxes or post such bonds as the taxing authority may require to prevent such forfeiture or liability, in which event Lessee shall be entitled to a credit against Operations Period Rent equal to the amount paid by Lessee. 9. Lessee's Representations, Warranties and Covenants. Lessee hereby represents,warrants and covenants to Landowner as follows: 9.1 Landowner Activities. 9.1.1 Lessee shall consult with Landowner on its site development plan prior to construction of any Solar Power Facilities, showing Landowner the proposed location of solar panels,roads and electric power lines,before making Lessee's final decisions as to location of the Solar Power Facilities on the Leased Premises, but Lessee shall make all final siting decisions in its sole and absolute discretion. Lessee shall post the access roads it constructs going to the Solar Power Facilities as being private roads only for use by authorized personnel in connection with the Solar Power Facilities. Landowner may use or cross such roads only to the extent that Landowner does not interfere with Lessee's rights under this Agreement. Lessee shall not install any underground storage tanks on the Property. 9.1.2 During the Development Period, Landowner may continue to use the Property to the extent such use by Landowner does not,currently or in the future,interfere with Lessee's operations hereunder or enjoyment of the rights hereby granted. Lessee shall make reasonable efforts not to disturb Landowners activities on the Property to the extent such activities are consistent with Lessee's rights under this Agreement. Landowner shall have no right to use the Leased Premises during the Operations Period. 9.2 Insurance. BTM 767584v2 1 1 9.2.1 Lessee shall, at its expense, maintain insurance with respect to the Improvements against loss�r damage by fire,lightening and other risks from time tai time included under typical "all risk" pplicies and against loss or damage by earthquake, flpod, collapse, vandalism,malicious mischief and explosion,in amounts sufficient to enable Lessee to reduce the Improvements to grade and clear the land(or.if greater,to enable Lessee to comply with Lessee's obligations under Section 7.5 to remove the Solar Power Facilities at the expiration of the Term). 9.2.2 Lessee shall, at its expense,maintain a commercial general liability insurance policy insuring Lessee and Landowner against loss or liability caused by Lessee's occupation and use of the Leased Premises under this Agreement,in an amount not less than One Million Dollars ($1,000,000) of combined single limit liability coverage per occurrence,accident or incident,and Two Million Dollars($2,000,000)in the aggregate. Lessee shall name Landowner as an additional insured. Certificates of such insurance evidencing the coverages required by this Agreement shall be provided to Landowner at Landowner's reasonable request. Lessee shall have the right to use a qualified program of sell'-insurance to meet the insurance requirements. Lessee may also carry such other types of insurance as Lessee elects in its sole and absolute discretion,including without limitation coverage amounts and deductibles. 9.2.3 Landowner and Lessee each hereby waives any right of recovery against the other and the authorized representatives of the other for any loss or damage that is covered or required by this Agreement to be covered by any policy of insurance maintained with respect to the Property or any operations therein, even though such loss or damage might have been occasioned by the negligence of such party. 9.3 Indemnitv. Lessee will indemnify, defend, and hold harmless Landowner against liability for physical damage to property and for physical injuries or death to Landowner, Landowner's property or the public, to the extent caused by Lessee's construction, operation, maintenance,or removal of the Solar Power Facilities on the Leased Premises,except to the extent such damages, injuries or death are caused or contributed to by the negligence or willful misconduct of Landowner or Landowner's tenants, invitees or permittees. The reference to property damage in the preceding sentence does not include any damage or any losses of rent, business opportunities, profits and the like that may result from Landowner's loss of use of any portions of the Leased Premises occupied by, or otherwise attributable to the installation of, the Solar Power Facilities pursuant to this Agreement. The terms set forth in this Section 9.3 shall survive termination of this Agreement. 9.4 Requirement of Governmental Amencies. Lessee, at its expense, shall comply in all material respects with valid laws. ordinances, statutes,orders and regulations of any governmental agency applicable to the Solar Power Facilities. In its sole and absolute discretion and through appropriate legal proceedings brought in the name of Lessee or in the names of both Lessee and Landowner where appropriate or required. Lessee shall have the right to contest the validity or applicability to the Property or the Solar Power Facilities of any law,ordinance,statute, order, regulation,property assessment or the like now or hereafter made or issued by any federal, state, county, local or other governmental agency or entity. Landowner shall cooperate in every BT;4t 767i84N2 12 reasonable way in such contest, provided Lessee reimburses Landowner for its reasonable and actual out-of-pocket expense directV incurred in connection with such cooperation, to the�xtent Lessee has approved such expense in advance in writing. Any such contest or proceeding, including any maintained in the name of Landowner, shall be controlled and directed by Lessee, but Lessee shall indemnify and defend Landowner from losses Landowner incurs due to Lessee's failure to observe or comply during the contest with the contested law, ordinance. statute, order, regulation or property assessment. 9.5 Construction Liens. Lessee shall keep the Property free and clear of all liens and claims of liens for labor and services performed on,and materials,supplies or equipment furnished to, the Property in connection with Lessee's use of the Property pursuant to this Agreement. Lessee shall remove, or cause the removal of, any such lien by bond or otherwise within sixty(60) days after Lessee becomes aware of the existence of such lien. 9.6 Hazardous Materials. Lessee shall not violate, and shall indemnify Landow=ner against, any violation by Lessee or Lessee's agents or contractors of any federal,state or local law, ordinance or regulation relating to the generation, manufacture, production, use, storage, release or threatened release, discharge, disposal, transportation or presence of any substance,material or waste which is introduced,released,or brought onto the Property by Lessee and which is now or hereafter classified as hazardous or toxic,or which is regulated under current or future federal, state or local laws or regulations. 9.7 Brokers' Agreements. Lessee hereby agrees to indemnify, defend and hold Landowner harmless from any claims or actions by any third parties claiming to represent or be acting on behalf of Lessee for a broker's commission or fee in connection with this Agreement. 10. Landowner's Representations,Warranties and Covenants. Landowner hereby represents,warrants and covenants to Lessee as follows: 10.1 Landowner's Authority. Landowner is the sole owner of the Property and has the unrestricted right and authority to execute this Agreement and to grant to Lessee the rights granted hereunder. No rights to convert the solar resources of the Property or to otherwise use the Property for solar energy purposes have been granted to or are held by any party other than Lessee. Each person signing this Agreement on behalf of Landowner is authorized to do so,and all persons having any ownership or possessory interest in the Property (including spouses) are signing this Agreement as Landowner. When signed by Landowner, this Agreement constitutes a valid and binding agreement enforceable against Landowner in accordance A ith its terms. No consent or other approval, authorization or action by, or filing with, any person is required to be made or obtained by Landowner for Landowner's lawful execution, delivery and performance of this Agreement. 10.2 No Interference. Landowner's activities and any grant of rights Landowner makes to any person or entity,whether located on the Property or elsewhere, shall not, currently or in the future, impede or interfere with: (i)the siting, permitting, construction, BTM 767584v2 13 installation, maintenance, operation, replacement, or removal of the Solar Power Facilities. whether located on the Leased Premises or 4Isewhere; (ii)the (low of solar, solar speed or solar direction over the Property; (iii) access oven the Property to the Solar Power Facilities, -vvhether located on the Leased Premises or elsewhere; or (iv)the undertaking of any other activities of Lessee permitted under this Agreement. In no event during the tern of this Agreement shall Landowner construct,build or locate or allow others to construct, build or locate any solar energy conversion system, solar panels or project similar to the Solar Power Facilities on the Property. 10.3 Title Review and Cooperation. Landowner shall cooperate with Lessee to obtain nondisturbance,subordination and other title curative agreements as requested by Lessee from any person with a lien,encumbrance,mortgage, lease or other exception to Landowner's fee title to the Property to the extent necessary to eliminate any actual or potential interference by any such person with any rights granted to Lessee under this Agreement.Any mortgagee of Landowner must agree, among other things, not to disturb Lessee's possession and use of the Adjacent Property and to waive any and all rights and/or liens to the Improvements. If Lessee and Landowner are unable to obtain such agreements from any third party holding an interest in the Property,Lessee, and any Permitted Assignee, in addition to any other rights provided for herein, shall be entitled (but not obligated) to make payments or performance in fulfillment of Landowner's obligations to such third party and may offset the amount of such payments or performance from amounts due Landowner under this Agreement; provided, that if such obligations cannot be satisfied by the payment of money or performance by Lessee, Lessee shall have the right to immediately terminate this Agreement. Landowner shall also provide Lessee with any further assurances and shall execute any estoppel certificates,consents to assignments or additional documents that may be reasonably necessary for recording purposes or otherwise reasonably requested by Lessee within ten (10) business days of Lessee's request, including without limitation under Section 12 below. All such agreements shall be obtained at Landowner's sole cost and expense. Lessee shall have the right,but not the obligation,to obtain a Title Insurance Policy securing its leasehold interest in the Property from a title insurer of its choice, at its sole cost. 10.4 Requirements of Governmental Agencies. Landowner shall assist and fully cooperate with Lessee in complying with or obtaining any land use permits and approvals, tax-incentive or tax-abatement program approvals, building permits, environmental impact reviews or any other approvals required or deemed desirable by Lessee in connection with the development, financing, construction, installation, replacement, relocation, maintenance, operation or removal of the Solar Power Facilities, including execution of applications for such approvals and delivery of information and documentation related thereto, and execution, if required, of any orders or conditions of approval. Lessee shall reimburse Landowner for its reasonable and actual out-of-pocket expenses directly incurred in connection with such cooperation, to the extent Lessee has approved such expenses in advance in writing. Lessee shall be entitled to any and all benefits of any tax-incentive or tax-abatement programs to the extent arising out of the Solar Power Facilities. No person or entity representing Landowner shall under any circumstances publicly or privately object to the Solar Power Facilities. B,rss 767584t2 14 10.5 Indemnity. Landowner will defend, indemnify and hold harmless Lessee for,from and against liability by reason of,resulting frpm,whether directly or indirectly,or arising out of(i) the inaccuracy of any representation or wquanty set forth in this Agreement. (ii) the nonfulfillment or nonperformance of any covenant or agreement of Landowner set forth in this Agreement, (iii) the negligence or willful misconduct of Landowner or its representatives and agents in the performance of their obligations under this Agreement, and(iv) for physical damage to property (including, without limitation, Lessee's roads) and for physical injuries or death to Lessee or its tenants, invitees, contractors or the public, to the extent caused by the operations, activities, negligence or willful misconduct of Landowner or its invitees,permittees or tenants. 10.6 Hazardous Materials. Landowner is in material compliance with all environmental laws as the same are applicable to the Property, and is not subject to any environmental proceedings with respect to the Property. Landowner has not received any written notice of any violation, and to the knowledge of Landowner, no other Person has received any written notice of any violation, that, as of the date hereof, remains uncured, and no writs, injunctions,decrees,orders or judgments are outstanding and no suits,claims,actions,proceedings or investigations have been instituted or filed, and none are pending or, to the knowledge of Landowner, threatened, under any en-sriromnental laws with respect to the ownership, use or occupation of the Property. As of the Effective Date, to the knowledge of Landowner, (i) no hazardous materials have ever been produced on the Property or disposed of thereon or therein, (ii) no hazardous materials release has occurred on the Property, and(iii) no hazardous materials have migrated to the Property. Landowner shall not violate.and shall indemnify,defend and hold harmless Lessee for, from and against any violation (past, present or future) by Landowner or Landowner's agents or contractors of any federal, state or local law, ordinance or regulation relating to the generation, manufacture, production, use, storage, release or threatened release, discharge,disposal,transportation or presence of any substance,material or waste which was or is introduced, released, or brought onto the Property by Landowner and which was or is now or hereafter classified as hazardous or toxic, or which is regulated under current or future federal, state or local laws or regulations. 10.7 Ouiet Eniovment. Landowner covenants and warrants that Lessee shall peacefully hold and enjoy all of the rights granted by this Agreement for its entire term without hindrance or interruption by Landowner or any person lawfully or equitably claiming by,through, under or superior to Landowner,subject to the terms of this Agreement. 10.8 Utilities. Landowner shall cooperate with Lessee in Lessee's efforts to obtain utility services to and from the Leased Premises,including without limitation executing any applications necessary for such service to the Leased Premises, and granting service providers easements or licenses to cross the Adjacent Property, all at no additional cost to Lessee,provided that Lessee shall be solely responsible for all costs related to such seiA ices. 10.9 Brokers' Agreements. Landowner hereby represents and warrants that no broker's commission or fee is due to any party in connection with this Agreement and agrees to indemnify. defend and hold Lessee harmless from any claims or actions by any third parties BTM 767WO 15 claiming to represent or be acting on behalf of Landowner for a broker's commission or fee in connection with this Agreement. 3 1010 Landowner's Insurance. Landowner may,at its expense,carry such other types of insurance as Landovmer elects in its sole and absolute discretion, including without limitation coverage amounts and deductibles. 10.11 Minerals. To the best of Landowner's current knowledge, Landowner owns all of the oil, gas and other minerals, and all rights associated therewith, on or under the Property. 11. Assignment. 11.1 Lessee Assignment. Lessee and any Permitted Assignee (as defined below) shall have the right, without need for Landowner's consent, to do any of the following, conditionally or unconditionally, with respect to all or any portion of the Property: finance the Solar Power Facilities (for development, construction, term or permanent financing); grant co- leases, separate leases, subleases, easements, licenses or similar rights (however denominated)to one or more Permitted Assignees; or sell, convey, lease, assign (collaterally or otherwise) or transfer to one or more Permitted Assignees this Agreement, or any right or interest in this Agreement, or any or all right or interest of Lessee in the Property or in any or all of the Solar Power Facilities that Lessee or any Permitted Assignee may now or hereafter install on the Property;provided in no event shall Landowner be required to subordinate or encumber its fee title interest in the Property or any part thereof or interest therein in connection with any such encumbrance or hypothecation. An"Permitted Assignee"is any of the following: (i)any one or more parties involved in investing in or lending to Lessee or in any Solar Power Facilities;(ii)any purchaser or lessee of any of the Solar Power Facilities,or any purchaser of all or substantially all of the equity interests in Lessee; or (iii) a corporation, limited liability company, partnership or other entity that acquires all or substantially all of Lessee's business, assets or capital stock, directly or indirectly, by purchase, merger, consolidation or other means. Lessee or a Permitted Assignee that has assigned an interest under this Section l I.I.will give notice of such assignment (including the address of the assignee thereof for notice purposes) to Landowner, provided that failure to give such notice shall not constitute a default under this Agreement but rather shall only have the effect of not binding Landowner with respect to such assignment until such notice shall have been given. 11.2 Other Assignment. Except as permitted under Section 11.1 above or Section 12 below, Lessee shall not assign, sublet, enter into franchise, license or concession agreements, change ownership or voting control, mortgage, encumber, pledge, hypothecate or otherwise transfer(including any transfer by operation of law)all or any part of this Agreement or Lessee's or any Permitted Assignee's interest in the Property without first procuring the written consent of Landowner,which consent shall not be unreasonably withheld,conditioned or delayed. B-FM.767584v2 16 11.3 Landowner Assignment. This Agreement may not be assigned by Landowner w4out the prior written consent of Lessee, which consent shall not be unreasonably withheld. No apsignment of Landowner's interest in the Property or this Agreement shall relieve Landowner of any of its obligations under this Agreement,nor may any such assignment be made unless fee title to the Property is simultaneously transferred to the permitted assignee hereunder and unless such permitted assignee has assumed all of Landowner's obligations under this Agreement in writing. 12. Lender Protection. 12.1 Right to Mortgage. Landowner acknowledges that in order to finance the Improvements,Lessee may,without Landowner's consent,partner with various financing parties, including without limitation, lenders, banks and tax equity investors. Lessee may, upon prior written notice to Landowner, but without requiring Landowner's consent or approval, mortgage, collaterally assign, or otherwise encumber and grant security interests in all or any part of its interest in this Agreement and the Leased Premises to any institutional lender(s) and/or tax equity investor(s). These various security interests in all or a part of this Agreement and the Lessee Property are collectively referred to as a"Lessee Mortgage"and holder of such security interest, a "Lessee Mortgagee." Any Lessee Mortgagee shall use the Lessee Property only for the uses permitted under this Agreement. Upon completion of a grant of a security interest under this Section 12.1,Lessee will give Landowner notice of the Lessee Mortgage(including the name and address of the Lessee Mortgagee for notice purposes). 12.2 Notice of Default and Opportunity to Cure. As a precondition to exercising any rights or remedies related to any alleged default by Lessee under this Agreement, Landowner shall give written notice of the default to each Lessee Mortgagee(of which it has been notified in writing) at the same time it delivers notice of default to Lessee,specifying in detail the alleged event of default and the required remedy. Each Lessee Mortgagee or its designee shall have the right, but not the obligation, to cure any default of Lessee, and/or the right, but not the obligation, to remove any Improvements or other property- owned by Lessee or such Lessee Mortgagee located on the Landowner's Property to the same extent as Lessee. The cure period for any Lessee Mortgagee shall be the later of(i)the end of the Lessee cure period under Section 13; (ii) thirty (30) days after such Lessee Mortgagee's receipt of the default notice for a monetary default;(iii)ninety(90)days after such Lessee Mortgagee's receipt of the default notice for a non- monetary default;or(iv)the extended cure period in Section 12.3. Failure by Landowner to give an Lessee Mortgagee(of which it has been notified in writing)a notice of default shall not diminish Landowner's rights against Lessee, but shall preserve all rights of the Lessee Mortgagee or its designee to cure any default and to remove any Improvements or other property of Lessee or the Lessee Mortgagee located on the Landowner's Property. 12.3 Extended Cure Period. if any default by Lessee under this Agreement (except for any Lessee Payment Default)cannot be cured without the Lessee Mortgagee obtaining possession of all or part of the Lessee Property. then any such default shall be deemed remedied if an Lessee Mortgagee: (i)within sixty(60)days after receiving notice from Landowner as set forth BTM 767584v2 17 in Section 12.2, acquires possession of all or part of the Lessee Property, or begins appropriate judicial or nonjudicial 1proceedings to obtain the same; (ii) diligently prosecutes any such proceedings to completign; and (iii) after gaining possession of all or part of they Lessee Property performs all other obligations as and when the same are due in accordance with the terms of this Agreement. 12.4 Lender Consent. Within ten (10) days of Lessee's written request. Landowner shall execute and deliver to Lessee a written consent and estoppel substantially in the form as may be reasonably requested by a Lender. In such consent and estoppel,Landowner shall certify that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the Agreement is in full force and effect as modified and stating the modifications), and the dates to which any payments have been paid, and stating whether or not the Lessee is in default in keeping; observing or performing any term, covenant or condition contained in this Agreement, and, if in default, specifying any such default, and any other factual matters pertaining to this Agreement reasonably requested, it being intended that any such statement delivered pursuant to this Section 12 may be relied upon by the Lender, or any prospective purchaser or encumbrancer of a party's interest in the Agreement. 12.5 Lessee Mortgagee Liability. Any Lessee Mortgagee whose interest in the Lessee Property is held solely for security purposes,shall have no obligation or liability under this Agreement unless and until the Lessee Mortgagee succeeds title to the Lessee Property. An Lessee Mortgagee shall be liable to perform obligations under this Agreement only for and during the period it holds such title. 12.6 Amendment. The Parties shall negotiate in good faith any amendment to this Agreement from time to time to include any provision that may be reasonably requested by Lessee or any Lessee Mortgagee to implement the provisions contained in this Agreement or to preserve a Lessee Mortgagee's security interest. 12.7 Lessee Mortgagee's Right to Enforce Mortgage and Assign. Each Lessee Mortgagee shall have the right,in its sole discretion: (i)to assign its Lessee Mortgage; (ii) to enforce its lien and acquire title to all or any portion of the Lessee Property by any lawful means; (iii) to take possession of and operate all or any portion of the Lessee Property and to perform all obligations to be performed by Lessee under this Agreement,or to cause a receiver to be appointed to do so; and (iv) to acquire all or any portion of the Lessee Property by foreclosure or by an assignment in lieu of foreclosure and thereafter to assign or transfer all or any portion of the Lessee rights tinder this Agreement to a third party in accordance with Section 14 below. Any Lessee Mortgagee or other party who acquires Lessee's interest in all or a portion of the Lessee Property pursuant to foreclosure or assignment in lieu of foreclosure shall not be liable to perform the obligations imposed on Lessee by this Agreement,which are incurred or accruing after such Lessee Mortgagee or other party no longer has ownership or possession of the Lessee Property so long as those obligations are expressly assumed by its successor. BTIM 767584a2 18 12.8 New Agreement. If the Lessee Property is foreclosed upon or there is an assignment in lieu of foreclosure, or if this Agreement is rejected or disaffirmed pur�uant to bankruptcy law or other law affecting creditor's rights and, within ninety (90) days after such event,Lessee or any Lessee Mortgagee or other purchaser at a foreclosure sale shall have arranged to the reasonable satisfaction of Landowner to cure any material defaults under this Agreement, and for the payment of the Annual Installment Payments or other charges due and payable by Lessee as of the date of such event, then Landowner shall execute and deliver to Lessee or such Lessee Mortgagee or other purchaser at a foreclosure sale,or to a designee of one of these parties, as the case may be, a new agreement ("New Agreement") which (i) shall be for a term equal to the remainder of the Term of this Agreement before giving effect to such rejection or termination; (ii) shall contain the same covenants, agreements, terms, provisions and limitations as this Agreement (except for any requirements that have been fulfilled by Lessee or any Lessee Mortgagee or other purchaser at a foreclosure sale prior to rejection or termination of this Agreement); and (iii) shall include that portion of the Lessee Property in which Lessee or such other Lessee Mortgagee or other purchaser at a foreclosure sale had an interest on the date of rejection or termination. If more than one Lessee Mortgagee makes a written request for a New Agreement pursuant to this provision,the New Agreement shall be delivered to the Lessee Mortgagee requesting such New Agreement whose Lessee Mortgage is prior in time, and the written request of any other Lessee Mortgagee whose lien is subordinate shall be void and of no further force or effect. The provisions of this Section 12.9 shall survive the termination, rejection or disaffinnation of this Agreement and shall continue in full force and effect thereafter to the same extent as if this Section 12.9 were a separate and independent contract made by Landowner, Lessee and each Lessee Mortgagee, and, from the effective date of such termination, rejection or disaffirmation of this Agreement to the date of execution and delivery of such New Agreement,such Lessee Mortgagee or other purchaser at a foreclosure sale may use and enjoy the Lessee Property without hindrance by Landowner or any person claiming by, through or under Landowner; provided that all of the conditions for the New Agreement as set forth above are complied with. 12.10 Lessee Mortgagee's Consent to Amendment, Termination or Surrender. Notwithstanding any provision of this Agreement to the contrary, the Parties agree that so long as any Lessee Mortgage remains outstanding and Landowner has been notified in writing of such Lessee Mortgage, this Agreement shall not be modified or amended prior to expiration of the Term of this Agreement, without the prior w=ritten consent of the Lessee Mortgagee holding such Lessee Mortgage. This provision is for the express benefit of and shall be enforceable by each Lessee Mortgagee as if it were a party named in this Agreement. 13. Default. 13.1 Event of Default. With respect to Landowner or Lessee (each a"Party"), an event of default("Event of Default") shall exist under this Agreement if: (a) such Party fails to pay any amount within ten (10) business days after receipt of written notice that such amount is past due; BTM 767584v2 19 (b) such Party is in breach of any representation or warranty set forth herein or fails to perform any material obligation set forth in this Agreement and such breach or failure is not cured within sixty (60) day. after notice from the non-defaulting Party; provided, however, that if the breach or failure is such that it cannot be cured within such sixty (60) day period using commercially reasonable efforts, the cure period shall be extended so long as the defaulting Party is diligently pursuing such cure; and further provided, however, that the cure period shall be extended by the number ofdays during which the defaulting Party is prevented from taking curative action solely by Force Majeure(as defined below)if the defaulting Party had begun curative action and was proceeding diligently, using commercially reasonable efforts, to complete such curative action;or (e) such Party files a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any State,district or territory thereof,and such petition is not dismissed within sixty (60) days. 13.2 Remedies. Upon an Event of Default by one Party, subject to the rights of any Lender,the other Party shall have the right,but not the obligation,to terminate this Agreement, in part or in whole as to the Property,with respect to all obligations arising after the effective date of such termination (other than payment obligations relating to obligations arising prior to such termination). The defaulting Party shall be liable to reimburse the non-defaulting Party for such non-defaulting Party's expenses and costs relating to such default (including, but not limited to, reasonable attorney's fees). 13.3 Cumulative Remedies. Subject to the other terms and conditions of this Agreement, each Party shall have all rights and remedies available at law and in equity for any breach of this Agreement by the other party. 14. Condemnation; Casualty. 14.1 Entire or Partial Termination. If the whole or any part of the Property shall be taken or condemned, Lessee shall have the right, in its sole and absolute discretion, to either (i) terminate this Agreement, without penalty, or (ii) in the event of a taking of less than all of the Property, continue under this Agreement with respect to the portion of the Property not taken. Lessee reserves the right to claim and prosecute its claim for any award or damages based upon loss, damage or injury to its leasehold interest(as well as relocation and moving costs), the Solar Power Facilities and other property interests of Lessee in and to the Property. If applicable law allows or requires the recovery or award from the condemnor to be paid into a common fund or to be paid to Landowner only, and if such recovery or award is so paid into a common fund or to Landowner only, then the recovery or award so paid shall be apportioned between the patties according to the value of their respective property interests as they exist on the date of the condemnation, giving due consideration for the number of years remaining in the term and the condition of the Solar Power Facilities and improvements. If the recovery or award from the condemnor is paid into a common fund or paid to Landowner only,then the Lessee shall be entitled to that portion of such award given for the value of the Solar Power Facilities,Except for Lessee's BTM 7675842 20 leasehold interest in the Premises(that will be apportioned in accordance with this Section),Lessee shall not be entitled to share in any separate award made to Landowner for the value of any land II owned by Landowner which is the subiect of the to ing. Landowner shall not be entitled to share in any separate award made to Lessee for the va ue of the Solar Facility. Lessee's relocation expenses, and Lessee's other expenses. The provisions of this Section shall survive any termination of this Agreement. 14.2 Insured Casualty. If the Solar Power Facilities are partially or totally destroyed by fire or any other peril.Lessee shall have the right, in its sole and absolute discretion, to either (i)terminate this Agreement without any payment to Landowner, in w=hich event this Agreement shall cease and terminate as of the date of such notice, or (ii)repair the damage. If Lessee elects to reconstruct the Solar Power Facilities, Operations Period Rent and all other amounts due under this Agreement shall abate in proportion to the degree to which Lessee's use of the Property is impaired until such time as the reconstruction of the Solar Power Facilities is completed. Upon termination of this Agreement pursuant to this Section 14.4, an equitable adjustment shall be made concerning any payments made by Lessee to-Landowner. 15. Miscellaneous. 15.1 Force Maieure. 1f performance of this Agreement or of any obligation hereunder is prevented or substantially restricted or interfered with by reason of an event of Force Majeure(defined below),the affected party,upon giving notice to the other party,shall be excused from such performance to the extent of and for the duration of such prevention, restriction or interference. The affected party shall use commercially reasonable efforts to avoid or remove such causes of nonperformance and shall continue performance hereunder whenever such causes are removed. "Force Majeure"means fire,earthquake,flood or other casualty or accident;strikes or labor disputes; war, civil strife or other violence; any law, order, proclamation, regulation, ordinance,action,demand or requirement of any government agency or utility;or any other act or condition beyond the reasonable control of a party hereto. 15.2 Confidentiality. Landowner shall maintain in the strictest confidence all information pertaining to the financial terms of or payments under this Agreement. Notwithstanding the foregoing, Landowner may disclose such information to (a)Landowner's lenders, attorneys, accountants and other personal financial advisors solely for use in connection with their representation of Landowner regarding this Agreement, (b)any prospective purchaser of the Property who has a made a w=ritten offer to purchase or otherwise acquire the Property that Landowner desires to accept or (c)pursuant to lawful process, subpoena or court order requiring such disclosure; provided, that Landowner in making such disclosure advises the party receiving the information of the confidentiality of the information and obtains the written agreement of said party not to disclose the information, which agreement shall run to the benefit of and be enforceable by Lessee;provided, further,that with respect to(c),Landowner shall promptly notify Lessee of the lawful process,subpoena or court order and afford Lessee the opportunity to contest same. The provisions of this Section 15.2 shall survive the expiration or earlier termination of this Agreement. BTM 767584,,2 21 15.3 Successors and Assigns. The Agreement shall burden the Property and shat run with the land. This Agreement shall inure to he benefit of and be binding upon Lantowner and Lessee and, to the extent provided in an assignment or other transfer under Section l 1 hereof,any Permitted Assignee,and all of their respective heirs,transferees,successors and assigns, and all persons claiming under or through them. 15.4 Memorandum of Lease. The Parties agree that this Agreement shall not be recorded, but the Parties shall execute and Lessee may record a Memorandum of Lease in the form attached hereto as Exhibit D. Lessee may record an updated memorandum when the legal description of the Leased Premises is finalized. Landowner hereby consents to the recordation of the interest of any Permitted Assignee in the Property. Upon expiration or earlier termination of this Agreement, Lessee will execute and record a termination of such memorandum. 15.5 Notices. All notices or other communications required or permitted by this Agreement,including payments to Landowner,shall be in writing and shall be deemed given when personally delivered, or in lieu of such personal service, five (5) days after deposit in the United States mail, first class, postage prepaid, certified, or the next business day if sent by reputable overnight courier,provided receipt is obtained and charges prepaid by the delivering party. Any notice shall be addressed as follows: If to Landowner: If to Lessee: SIZE Solar Origination 2,LLC Attn: Legal Department 1515 Wilson Blvd, Suite 300 Arlington, VA 22209 Email: legal@srenergy.com If to anv Permitted Assignee: At the address indicated in the notice to Landowner provided under Section 11.1 hereof. Any party may change its address for purposes of this paragraph by giving written notice of such change to the other parties in the manner provided in this paragraph. 15.6 Entire Agreement; Amendments. This Agreement constitutes the entire agreement between Landowner and Lessee respecting its subject matter. Any agreement, understanding or representation respecting the Property, this Agreement, or any other matter referenced herein not expressly set forth in this Agreement, or in a subsequent writing signed by both parties,is null and void. This Agreement shall not be modified or amended except in a writing signed by both parties. BTM 767584v2 22 I 15.7 Leal Matters. 15.7.1 This Agreement shall be governed by interpreted reted in accordance � P with the laws of the State. If the parties are unable to resolve amicably any dispute arising out of or in connection with this Agreement,they agree that such dispute shall be resolved in the State court located in the county in which the Property is situated. 15.7.2 TO THE EXTENT PERMITTED BY LAW, EACH OF THE PARTIES KNOWINGLY,VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS AGREEMENT, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY OTHER AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH. THIS PROVISION IS A MATERIAL INDUCEMENT TO EACH OF THE PARTIES FOR ENTERING INTO THIS AGREEMENT. 15.7.3 IT 1S EXPRESSLY UNDERSTOOD AND AGREED TIIAT NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, AND NOTWITHSTANDING ANY APPLICABLE LAW TO THE CONTRARY, THE LIABILITY OF LESSEE HEREUNDER (INCLUDING ANY SUCCESSOR TO LESSEE) AND ANY RECOURSE BY LANDOWNER AGAINST LESSEE SHALL BE LIMITED SOLELY AND EXCLUSIVELY TO THE INTEREST OF LESSEE IN AND TO THE SOLAR POWER FACILITIES, LESSEE SHALL NOT HAVE ANY PERSONAL LIABILITY THEREFOR, AND LANDOWNER HEREBY EXPRESSLY WAIVES AND RELEASES SUCH PERSONAL LIABILITY ON BEHALF OF ITSELF AND ALL PERSONS CLAIMING BY, THROUGH OR UNDER LANDOWNER. 15.7.4 In the event that either Landowner or Lessee fails to perform any of its obligations under this Agreement or in the event a dispute arises concerning the meaning or interpretation of any provision of this Agreement,the defaulting party or the party not prevailing in such dispute, as the case may be, shall pay any and all reasonable costs and expenses incurred by the other party in enforcing or establishing its rights hereunder, including, without limitation, court costs and reasonable counsel fees, including any such amounts incurred on appeal or in enforcing a judgment. 15.8 Partial Invalidity. Should any provision of this Agreement be held in a final and unappealable decision by a court of competent jurisdiction to be either invalid, void or unenforceable,the remaining provisions hereof shall remain in full force and effect and unimpaired by the court's holding 15.9 Counterparts. This Agreement may be executed with counterpart signature pages and in duplicate originals, each of which shall be deemed an original, and all of which together shall constitute a single instrument. 15.10 Drafting_Interpretations. Preparation of this Agreement has been a joint effort of both the parties and the resulting document shall not be construed more severely against one of the parties than against the other. sTM 7675942 23 15.11 Time of the Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the parties under this Agreement. I [Signature page follows.] BTM-767-84v2 24 IN WIJ"T%,TESS WHEREOF, Landowner and Lessee have caused this Agreement to be executed and delivered b their duly authorized representatives as of the Effectiv I Date. LESSEE: SRE Solar Origination 2,LLC, a Delaware limited liability company By: Name: Title: LANDOWNER: a By: Name: U5*co* A ezp� e Title- BTM 767584v2 25 EXHIBIT D MEMORANDUM OF LEASE 1 !� This Memorandum of Lease is entered into on thIis 11--day of Ja(\ 2021 by and between , having a mailing address of (hereinafter referred to as "Landowner") and SRF-, Solar Origination 2, LLC, a Delaware limited liability company,having a mailing address of 1515 Wilson Boulevard, Suite#300,Arlington, VA 22209 (hereinafter referred to as"Lessee"). 1. Landlord and Tenant entered into a certain Solar Lease Agreement(the"Agreement") on the —day of 2020, for the purpose of installing, operating, maintaining and decommissioning a solar-powered electric generation facility("Solar Facility")and easements for access and servicing the Solar Facility as set forth in the Agreement. Capitalized terms used herein but not defined shall have the meanings ascribed in the Agreement. 2. The Agreement includes a Development Period effective from the date of the Agreement and for 550 days with options to extend. The Operations Period will be twenty-five years commencing on the effective date of written notification by Lessee to Landlord of the start of the Operations Period,with options for two(2)periods of five(5)years each to renew,and then up to 180 days to decommission the Solar Facility. 3. The portion of the land within which the Leased Premises where the Solar Facility and the supporting easements will be located is described in Exhibit 1 annexed hereto. 4. This Memorandtml of Lease is not intended to amend or modify, and shall not be deemed or construed as amending or modifying, any of the terms; conditions or provisions of the Agreement, all of which are hereby ratified and affirmed. In the event of a conflict between the provisions of this Memorandum and the provisions of the Agreement, the provisions of the Agreement shall control. The Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors, and assigns, subject to the provisions of the Agreement. SRI,Solar Origination 2, LLC, LANDOWNER a Delaware limited liability company Bv: By Its: Manager Name: Title: cry.Oc, -ut 5a r BTM 767584%,2 Tenant Acknowledgment STATE OF ) ss COUNTY OF ) On , 2020, before me, a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the persons)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his./her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of the Notary Public (Seal) BT.br.767584v2 Landowner Acknowledgment STATE OF nowuner } ) ss COUNTY OF bUjNt ) On -�0-0.l9 , 202$ before me, L11m M,S &VL* a Notary Public, personally appeared CXM- (I PL'_I.j who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of_Aelx). U(ft that the foregoing paragraph is true and correct. WITNESS my hand and official seal. p IAO I^- Signature of the Notary Public LAUREN M.STANDISH Notary Public-State of New York No.01 ST6164008 tlualified in Suffolk county Commission Expires April 9,2023 (Seal) BTM-7675842 SUMMIT RIDGE ENERGY ► Exhibit C: PVWatts Simulatio� Results 24 EMN MEN= RESULTS 6,921 ,186 kWh/Year* S �Ip qy range Porri 6 7b8,538 t(-,-7095-599 kWh Fier yea,near this focatron. y, wn-eputm. Month -Ion AC 'Energy Value epm-�.nw- w Mon Solar Radia nftft.,mp Is Fv twm�le,F, .0, kWh 1 M2/day) kWh) (s) 16"olentW-- '-fomg-V rw"Ae5,;,b NRft aro'o-ate January 3.25 421,968 80,300 Zeef,-o to6 wd,iS t,Wl 51/mill,A-"w, ,4o(A at-A"INIM Ifel that a I,,,f, mar=ffe--e ml corvex ne—le,w,of tv February 4.04 452,038 86.023 sy3tL,% Thn exppd� tq-w of X"eam of March 5.35 643,314 122,423 'ed�lc`daza�',t`L Gje, 11WfvWd to,-,mv-ce zp ane nton of April 6.12 691,370 131,568 '13=1 yon m,Mt 34e F'of rov2 11(11rra�,01,r ese"f-r fo tns m,-L m"c'T The rrru:Ef,,q May 6.20 713,020 135,688 June 6.31 698.120 132,852 Dfd Wx The rqf,; July 6.41 711,474 135,393 try ttv Ndxla Ravmalke CtA51':, wt,,m s A41 dm-v Foe S�w,,L, August 6.21 686,798 130,698 -Allantefur d�a CS 0-fwr-,w,of L"c,3" "j ,,,I,, ro�4��vll'r� September 5.68 618,848 117,767 '-Mo r"'UNREVAUMNCE October 4.27 509,429 96,944 to.tyzd M We WNt ,y V W, wmer w"mtr"o to of promotc wy er"Ajq,, November 3.48 412,548 78,508 OseS ttW 0OC,`1ftL!ALLMr1 1111 natp,ow�- December 2.84 362,260 68,938 lt�KAeAnnual 6,921,187 S1,317,102 ve'qf�' of t.2 p',� A(A'45' IM CLAN OR DEMAND,ANLocation and Station Identification 11,C11jrj-1,FC FzSkW:AWE Arf0RNLV5 1-1 1- — . - - - -11 -- - - - - - - I, - -IZ6,RLATM rO WOOR use RWANCE, OR AW-10'j OP T4,MODEL rOP ANY Req V1HA1uested Location 11935,USA S0V,&R IiiC MCDL-G.',S PROMED U DOSj%Pr411%UAN1E'AS IS' Weather.Data Source Lat,Lon:41.01,.72.5 1.0 mi ANG ANY RNM OR VVAkWML, MOWING 51;T Nfj- JKTFO TO TK MPLIED 4ARRAN(ILS 01 Latitude 41,01*N 11�,ZCHAVK,-M AND HINESS FOR A IARMU-AR NAPD5= ARE EXPRE-3S-Y DYX UNLO IN NC WENT 5,tALL Longitude 72.5*W X[,Nnt'A-'UAN'-f,SE L146,E-<',R AM S;-=A wm--T OR CO tSEQi:cr.TLht 041AUS OR MIF rAMACES WKITSOENTR, PV System Specifications(F-esidential" MKIWD'.P4 F"T Nat umpz[)f3 CLA!"-s A`+SOCIATII:j W1 T11 M_LOSS Or JATA OR PrOFI-11;' t'Y0i VIM ROM ANY DCS ystem Size 4857 kW AU.0N IN COMPACT. NEIGLIUNcr Of, Of-(NI IN TjF b,;P,CR Module Type Standard ire 'refry "Vjt rare ,s wX,1 Array Type Fixed(open rack) 4N frr mwpy,and js 3noaneac to P",de Array Tilt 25' a, -Mloatl"I ol"w Wsb'e '41wrap,,�ra F"',d(,R, Array Azimuth 180* System Losses 14.08% Inverter Efficiency 96% DC to AC Size Ratio 1.39 Economics Average Retail Electricity Rate 0.190$jkWh Performance Metrics Capacity Factor 16.3% SUMMIT RIDGE F N F RG7Y Exhibit D: Bidder Attestation 25 SECTION C TOWN OF SOUTHOLD Request for Proposals for the Leasing of the Cutchogue Landfill Property for the Development,Construction,Operation and Maintenance of Renewable Energy System, Including Battery Energy Storage and/or Solar Photovoltaic Systems CONTRACTOR BID FORM 1.0 GENERAL BID STATEMENT TO: TOWN OF SOUTIIOLD STATE OF NEW YORK 5-3095 MAIN ROAD SOU`I'HOLD,NEW YORK 11971 Gentlemen: The undersigned Bidder has carefully examined the forms and content of the Bid Solicitation, including notice to bidders,bid bond, sample operating agreement,performance bond, certificates of insurance, general conditions,bid specifications, and addenda,has familiarized itself with the sites of work, and hereby proposes to furnish all necessary services, permits,labor, materials,equipment,vehicles,and tools required to perform and complete the work in strict accordance with all of the bid documents written by or on behalf of the Town of Southold for this project. The undersigned Bidder agrees to abide by all conditions stated,intended, implied both particularly and generally by the terms of this Bid Solicitation,the Agreement to be provided by the Town,and the unit price Bid herein stated. 1. The Undersigned Bidder also agrees as follows: FIRST: If this bid is accepted,to execute the Agreement and furnish to the Town a satisfactory performance bond,and notification of insurance within ten(10) calendar days. SECOND: To begin the process of approvals for the contemplated project proposed on the commencement date of any Agreement awarded hereunder. THIRD: To pay the Town any and all damages it may incur as a result of the Contractor's failure to perform all acts necessary to the execution of the Agreement as provided in the Bid Solicitation. FOURTH: During the performance of this Agreement,the Contractor hereby agrees as follows: a. The Contractor shall not discriminate against any emplolee or applicant for mployment because of age,race, creed. color, sex, sexual orientation,marital status, national origin. or physical disability. b. The Contractor shall comply with the provisions of Sections 290 through 301 of the Executive Law, shall furnish all information and reports deemed necessary by the State Commission for Human Rights under these nondiscrimination clauses and such sections of the Executive Law,and shall permit access to his books, records,and accounts by the State Commission for Human Rights,the Attorney General, and the Industrial Commissioner for purposes of investigation to ascertain compliance with these on discrimination clauses and such sections of the Executive Law and Civil Rights Law, c. This Agreement may be forthwith cancelled,terminated, or suspended, in whole or in part,by the Town upon the basis of a finding made by the State Commission for Human Rights that the Contractor has not complied with these nondiscrimination clauses. d. No laborer, workman or mechanic in the employ of the Contractor or subcontractor shall be permitted or required to work more than eight hours in any one calendar day, or more than five days in any one week except as otherwise provided in Labor Code Section 220. e. The Contractor shall include the provisions of clauses(a)through(e)in every subcontract or purchase order in such a manner that such provisions will be binding upon each subcontractor or vendor as to operations to be performed within the State of New York. FIFTH: By submission of this bid. the Bidder and each person signing on behalf of any Bidder certifies,and in case of a joint bid each party thereto certifies as to its own organization,under penalty of perjury that to the best of his knowledge and belief. a. The prices in this bid have been arrived at independently without collusion, consultation, communication,or agreement for the purpose of restricting competition. b. Unless otherwise required by law, the prices which have been quoted in this bid have not been knowingly disclosed by the Bidder and will not knowingly be disclosed by the Bidder prior to opening. c. No attempt has been made nor will be made by the Bidder to induce any other person, partnership,or corporation to submit or not to submit a bid for the purpose of restricting competition. 2. The undersigned also declares that it has or they have carefully examined the Bid Solicitation requirements and sample operating agreement and that it has or they have personally in$pected the actual location of work,together with the local sources of supply,has o' have satisfied itself or themselves as to all the quantities and conditions, and waives all rights to claim any misunderstanding, omissions or errors regarding the same which such inspection and observation would have disclosed. 3. The Bidder has completed the Contract Bid Form in accordance with these bid requirements. The undersigned hereby submits the following prices bid for the leasing of the Cutchogue Landfill Property for the development, construction, operation and maintenance of Renewable Energy Systems, including but not limited to battery energy storage and/or solar photovoltaic systems. SIGNATURE BLOCK The undersigned hereby submits the foregoing to furnish the services as described in this solicitation: 100 Church Street,Suite 800 Bidder: Summit Fridge Energy,LLC New York,NY 10007 .Firm-Corporation Address By: March 31,2020 Signature-Authorized Representative Date Print: Brian Dunn SUMMIT RIDGE ENERGY Exhibit E: Conceptull Site Plan I 26 P'MUC1,11,11'atneMlElill as W NO 4 R1, 7 Mi "All "All "AM IOMOMA M WWI MV 0, I to,�4 ................ Q `-, 3 A'As I N", h #,41-00 wo lwvml r2- M p,, --mnia " , - Q -W hw "AR v7 0 pit .................... 1-01M "lk M aw, WIN WMIR;00, ow I, W~, -W R, UMMI'll 00 ORR, l--, 2.1 K9pvbp,* w e0w ,�V k-s j��*q vvj H 11 41 'k„,V nk 4A -c now, 3 Ql, v ISR R"WIN. Ot IV ItIpAilf —o t 2 a 5 ml," <- WN A V 4A 1�- v wn 77 m WN, q Fri"Off M, ��IAjf gi if 'it NOR 4 ORS 71 -W,— fid' r RMM*,,� �,,W/ r We mil WN 2 WMQ or-,"ve i� a zm w 01, qifflb "M I ft'll d -7ii- 1�Inv, -e.'-.0� W AW W114 Olt Avg 7, 7, P, oll Will"'it, wo -J?, 14 ur 119 N as =llt Ml - ft p 0/006--, 1411, or Ar" �vowwffiw, AA; 4 -'o 4w, VW mom," P, M - ,A- wu �g w 7 III I HOLD LANDFILL PV PROGRM CONCEPTUAL LAYOUT 6155 COX LN CUTCHOGUE,NY 11935 '�UMMIT RlDGE=`,,,'c^-­7j, �`a# .� tea, r°� a°• °.�' ° ° :. _ � n E %� �` �d s AN belot .r,. c�r w > '. �1-` ° ig �a�:^xi�.; ,."syr,++' 'a„ „,^�arf°,ve '� - °=�'"� °' *; S"'°.� '.5r '�{•. ° jat mow^ 7 sG"` 3a^u" ?y,7';y, .3, 0, a" (yd�i ��A.,Ma - �• '"�a q�� � it..Y. 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Summit Ridge Ener — Your Experienced Renewable Ener Partner u^T� � g Energy p Energy ' RGGY SRE is an experienced solar and energy storage developer based in Arlington, VA with offices in New York City and Chicago. Founded in 2017, the company is managed by industry veterans and has become one of the fastest growing community solar developers, quickly surpassing many established organizations. Proven Development Access to Capital Local Team with Full Battery Track Record Storage Capabilities In 2019, SRE structured a Since its launch in 2017,through joint venture partnership SRE has more than 40 full-time self-development and acquisition with Hannon-Armstrong employees covering engineering, efforts,SRE has amassed a portfolio Sustainable Infrastructure sales, development, construction of over 300 MW of community solar (NYSE: HASI), called management, and finance. SRE is projects and 150 MWh of battery Summit Ridge Capital,to developing numerous battery storage projects in multiple U.S. finance its community solar storage projects on the North Fork markets. It is now expanding its portfolio in targeted U.S. of Long Island and has offices in development of stand-alone energy markets. New York City storage projects in NY. CONHMN i fAL-LTO NO f RPRODULE OR RELAST'RIBU I L 2 Landfill Solar Development Expertise �� E1 E �� SIRE has extensive experience developing solar on former landfill sites: its team has developed and financed numerous municipal solid waste fills in Massachusetts in former roles, and the Panorama rubble landfill in Prince George's County, Maryland. • • • • •• • • 0 • stem=Size 1:75 64 1:79 MW. ;2.70 MW, 4.698 MW - ..'" ' � 6.60 MW System Type Ground mount,ballasted Ground mount,ballasted Ground mount,ballasted Ground mount,ballasted Ground mount,pile-driven Location New Bedford,MA' Websfei;MA Pembroke,MA 5-B�dct on,MA » ` Fott Washington,MD Landfill Type Remediated EPA Municipal Solid Waste Municipal Solid Waste Municipal Solid Waste Rubble(Type III) Superfund Site ;,Co-Developer and" �° r SRE Role Co-l)eveioder and_Finanpler �°. Developer gip, bevel per Co Deve�o �r Financier Year 2015 2015 2017 2017 2019 Completed Laricifil Referenurkee t a{picture+d at"right) y b Com ' City ofENew Bedford, MA 1 cont.Durkee@ggWbed n- 7.1 3 Recent Summit Ridge Energy Solar Projects S61�ITRI'66GE ENERdY' _R& 2.7 MW IL community solar 3.8 MW MID community solar 1.1 MW MID roof-mounted project; first to achieve project in BGE territory community solar project energization in Ameren territory (November 2019) (August 2020) (June 2020) 4 V Summit Ridge Energy Development Approacha �M, Due Diligence: attention to detail and thoroughness Transparency: SRE will be an honest, reliable partner for the Town in realizing its renewable energy goals Problem-solving: SIRE understands the complexity of developing a landfill `solar array and has a track record of troubleshooting to get, over hurdles Long Term Owner-Operator: we finance Community Solar through our fund, Summit V.,r Ridge Capital, and serve as the owner/operator for the system's useful life. You will y: only have one company to deal with — not a chain of handoffs and new faces. Community Solar 101 Bitt Credit FlLo Off-site solar arrays are built on land or rooftops leased by Summit Ridge; lessor Solar SuPpG!J collects rental income energy w unchanged 3 _® Each subscriber executes an agreement with Summit Ridge to purchase solar - it bill credits Solar bill credits are delivered by local 'PC gme its to, utilities as monetary credits to offset mrvii customer bill charges swam RGY By aggregating systems across AMP multiple markets, SRE provides thousands of customers with monthly electricity savings 6 How We Designed the Solar and Battery Storage System fffgERG � • Real Design: Topology map was provided by Town's Engineer L.K. McLean Associates. SRE not proposing installing on slopes above 10%. SRE vetted its design with its racking company, Solar Flex Rack. We can build the system as proposed. • No Disturbance: Our design avoids the waste and mulching activities on site — minimal disturbance to the Town • Landfill Integrity: SRE will coordinate with the New York State Department of Environmental Conservation and its engineer to ensure the system does not impact landfill cap or venting system • Utility: Vetted interconnection with PSEG-LI with pre-application report received on 1/23/2020 • Maximize Energy Production: SRE uses bifacial solar modules and a battery storage system to maximize production and maximize rent for the Town • Low-Risk: SIRE proposal does not depend on a web of incentives and aggressive assumptions. We are confident with our bid and can deliver the same rent payment even if Long Island`s battery storage incentives disappear k Solar System Design `�^GE Sv MITIRZ, Ballasted Solar Array'. 3,500 kWac 4,857 kWdc -T7 w" R' e 7 3 & _z q 0, 2 t"Jot rk, , &p Au, A 17' pa E Z.49VIM po M-Mmv AAA my IS X W­­�,_�,��',NT -0 X,ale -v, Kul" _w tz 4,-Ikl i4k FM x 41 RN" 1z, Dw M TW—R—IR 4C ." 5 Z es�. It 4A Al So NOW 929MM -N M'Q� q IN __4 A 'pg 1 w "I I r 4,�,, , "I , X m M, I_ "Al c x�-� ��.,,.�..�».. ., zmA'".....°. �' :..`.,,«�a...„ ."eaei` �..�:��s to a.'a=.'',����'v�.i��^.A�..%m` .«'�x.�`� �,�L,�.r�^f xs".,w"... i„�',. �.: a: Solar System Design SUMMIT RIDGE ENERGY' Ballasted Racking Examples W, ,- " 63 'Z V 4,1 W, F71 qf4 ',s, w , I 1�A A ge i4� Battery Storage System Design - VMMIT-RIDGE ENERGY DC-Coupled Battery Storage System- 1 MW 4 MWh 1 211111 a ,i :> Battery is charged 100 by the solar � " 0 �,s n ��"y a� �� R�z �, -1 ; arra and firms the output of the solar » ;y � � � ", 3-� sa� , �° � � ;�� t system r � �F,, ���� � : ;. . , �. nd�i'a" �i �,i�°� x,' "��`` l X��' �, .nniri� � �. i�. EPP , • h n � s � au .� Battery storage is located in a s pp g :V 1% , �� � " :: container placed off of the landfill cap 'Ilk "� M � � x°,4,1� �z P �. 27 Enclosure built to National Fire t= 40 � • v Protection Act (NFPA) and UL 1741 ` will include fire detection v and suppression equipment v. standards and � �3 � � _ � :� • SIRE to choose a technology vendor with a track record in NYS and an investment- rade warranty " • SRE is currently developing battery storage systems in Southold, Brookhaven and Riverhead 10 Summit Ridge Energy Offer SPNMIT PjDGE ENERGY: 35-year Option to Lease Agreement Option Payment $ 81000 / year Option Period 2 years Land Lease.Rate $ 335,000 / year Annual Escalator 1 .5 % Lease Term 25 years with two 5-year extensions 35-Year Cumulative Lease Revenue $ 15,273,349 11 Next Steps Upon Award & Timeline SVeM4IT,'RI'I%D', ff'W60' SRE will move quickly to lock in incentives Submit for interconnection with PSEG-LI Submit designs to NYSDEC and Southold Negotiate Planning Board Option to Lease Once permits agreement with and the PSEG-LI the Town Agreement is in-hand, SIRE can reserve NYSERDA incentives °, ' 3 -9, , SSG~�Ihas not�'cornrr� :, gr w »_ ,,» g P tted to renew�n ti e,�5 cerit/�C1111°° £Communitty, Cfed� b.e on=d.2020. ;�a �1-N r., ;' ,� ^ ua�°^,K �'a,%� 4 r-�a ,. �. „���"» 1weriove uickF£ w :pari lockthis 'r , � t is a=°c ucial incen, tvepforteF`,ro ect.y aN q °;° r ' ..: .., µms'A: ,„� u ...,.,�,„ _a .::,°' ,<,.icI I Mme: ws 12 .a'�,G'�S�'`r'�'A � "�Pt\ �' J- i,� w �+, •�< �t�"T5`�:,Z� ys'D;la Ee,.�� ,��} a�'l, y, i/%a"'�`1� `'°� K� �All, I l Hr! ���:.