In these times of soaring energy costs and new environmental regulations, it’s time to protect your finances. Property Assessed Clean

Energy (PACE) financing from Figtree Energy Resource Company can help you turn your energy and water bills into thousands of

dollars in savings each year through easy-to-implement energy efficiency, renewable energy, and water conservation upgrades.

It’s a timely opportunity that can save you money and preserve precious natural resources.

As a California commercial property owner, you are prequalified for upfront PACE financing. This unique program has been adopted

by numerous California cities, which enables Figtree to offer financing based on property value. Qualifying for PACE financing

requires no minimum credit score, no income hurdles, and no personal guarantee. Additionally, the balance can transfer to the

next owner if you sell the property – you pay for only the benefits you receive. Payments are made as assessment installations on

your property’s tax bill, but participation is completely voluntary and the program does not rely on public funds.

Hundreds of Ways to Save

What will you do with

Your Reen Savings?

Heating & Air Conditioning

Boilers & Chillers

Lighting

Energy management systems

Windows & Exterior doors

Occupancy sensors

Electric vehicle charging stations

Solar thermal water heaters

Pool equipment

Programmable thermostats

Solar photovoltaic systems

Solar reflective roofing

Water-efficient plumbing fixtures

And many more

Better than

Conventional Loans

No-money-down

Simple qualification process

No personal guarantee

Lien transfers upon sale

Fixed rate

Longer terms

Introducing PACE Financing for energy upgrades

Figtree Energy Resource Company is committed to making financial sense of the clean energy movement. Our extensive background in finance and built environments enabled us to develop Figtree's unique PACE program, a privately-financed municipal program that addresses a gap in traditional financing to bring energy and water efficiency property improvements within reach for virtually any commercial property owner.

About Figtree Energy Resource Company

“In these times of

soaring energy costs

and new environmental

regulations, it’s time to

protect your finances.”

Www.FigtreeCompany.com — 877.577.7373

Financial Planning

Considerations

Full service, Free Market Financing Model

Full Service: Figtree manages the financing process from application through disbursement of funds.

Free Market: Figtree funds projects through various sources to provide the best available rate and terms.

Interest Rate

Market Rate: The interest rate for each financing is set by the current market for PACE bonds. Our multiple funding sources ensure

that your rate is the best available.

Fixed Rate: PACE financings feature a fixed interest rate for up to 20 years (determined by useful life of improvements).

Target Rates as of May 2012: Lowest Available Rate: 7.99% Tier 1 Rate: 8.99%

Maximum Financing

The maximum amount of PACE financing available to any property owner is determined by the Total Property Value or Net Taxable

Value of the property as recorded by the County Assessor. The maximum financeable amount is calculated as:

10% x Net Taxable Value = Maximum PACE Financing at Lowest Available Rate

20% x Net Taxable Value = Maximum PACE Financing at Tier 1 Rate

Minimum financing is $5,000.

Accounting Treatment

Cash Flow Decision

PACE financing changes the investment decision from

payback to cash flow because the financing is provided

upfront with no-money-down.

From the onset, energy and water efficiency upgrades

can create positive cash flow as savings fully offset the

cost of financing. Cash flow typically grows over time as

energy rates rise and, when the PACE assessment is

paid off, well-maintained equipment can continue to

produce savings for years to come.

Depreciation Tax Benefits: Certain improvements will qualify for accelerated depreciation.

Investment Tax Credits: Many energy efficiency and renewable energy measures qualify for investment tax credits, which require

sufficient tax liability for eligibility.

Rebates: Income from rebates issued by utilities, state agencies, and others is typically taxable.

Interest Deduction: A schedule of payments allocated between principal and interest will be provided by Figtree at disbursement.

Helpful Tip: See Title 26, United States Code, section 164(c) Deduction denied in case of certain taxes.

“No deduction shall be allowed for the following taxes: (1) Taxes assessed against local benefits of a kind tending to increase the

value of the property assessed; but this paragraph shall not prevent the deduction of so much of such taxes as is properly allocable

to maintenance or interest charges.”

Figtree cannot provide official accounting guidance. Please consult your Certified Public Accountant or tax advisor.

Community and

Environmental Benefits

Economic Growth

Why keep spending excessive utility rates when improving your property’s energy efficiency and even installing a

renewable energy system is economical and easy to do? Energy efficiency and renewable energy projects are

proven ways to put money back into your community with cash savings, new jobs, better-performing businesses,

and improved property values.

Cleaner Air

Energy efficiency and renewable energy upgrades reduce your dependence on

conventional fuels that produce greenhouse gases and particulates, which

contribute to environmental damage. By updating your property or installing a

renewable energy generator like solar photovoltaic panels, you’re doing your part

to clean up the environment. And PACE financing can help you or your business

save loads of money in the process.

Regulatory Compliance

PACE financing can help you get ahead of the curve as the State of California and local government agencies tighten environmental

policies. Commercial and industrial property owners may face higher energy rates and penalties for emissions, which can be avoided

by a variety of easy-to-implement improvement projects. Current regulations under AB-32 require a reductions in emissions and 30%

of energy to be supplied by renewable sources by 2020. Additionally, under AB-1103, commercial property owners are required to

disclose the energy efficiency of their buildings upon sale or leasing. Figtree can help you make sure your properties are protected.

Create and Retain Jobs

PACE Helps Property Owners:

Study finds that “tenants in green buildings

experience increased productivity and fewer sick

days, and that green buildings have lower vacancy

and higher rental rates.”

CB Richard Ellis, 2009

Attract New Customers

Increase Productivity

Increase Property Value

Improve Tenant Retention

Reduce Operating Expenses

Special Considerations

For Tenant-Occupied

Properties

The “Split Incentive”

The Problem:

Energy-efficiency upgrades require building owners to bear a project’s expense while tenants receive financial benefits through

reduced building operating expenses. This “Split Incentive” disincentivizes many property owners from doing efficiency upgrades.

The Solution: Energy Aligned Lease Provision

A study commissioned by the Mayor of New York City Office of Long Term Planning and Sustainability (OLTPS) indicates that pass-

through lease structures can make energy efficiency upgrades net present value (NPV) positive for both owners and tenants. Even if

the improvements substantially underperform expectations, the downside risk to both parties is considered to be nominal in

comparison to the cost of owning, occupying, and operating a commercial building.

The OLTPS Recommendation

The study produced a consensus that energy efficiency savings are typically within +/- 20% of predicted savings (as variations occur

due to external variables and occupants’ energy-use habits). The capital expense pass-through model in the study was based on

limiting the pass-through to 80% of predicted savings annually. In turn, tenants were buffered from underperformance and benefitted

when the improvements performed as expected. Property owners benefitted from recovering the cost of improvements while making

needed upgrades to their real estate assets.

Why Energy Aligned Lease Provisions Work

Language can be inserted into typical commercial leases

Both parties save money

20% buffer protects tenants from underperformance

Owners recover their costs and improve their properties

Support for Energy Aligned Lease Provisions

US Green Building Council

Real Estate Board of New York

Cushman & Wakefield

Ernst & Young

For more information visit: http://www.nyc.gov/html/planyc2030/downloads/pdf/energy_aligned_lease_official_packet.pdf

Participating Cities

And Counties

Active Figtree PACE Programs as of May 31, 2012

County of Alameda (unincorporated areas)

County of Kern (unincorporated areas)

County of Lake (unincorporated areas)

Adelanto

Calipatria

Clovis

Dublin

Exeter

Farmersville

Fresno

Kerman

Palm Springs

Pittsburg

Rancho Cordova

Redlands

Sanger

South San Francisco

Vacaville

Woodlake

Future Growth Goals

County of Alameda (incorporated areas)

Berkeley

Fremont

Hayward

Oakland

Union City

County of Los Angeles (selected areas)

Commerce

Industry

County of Kern (incorporated areas)

Bakersfield

County of Santa Clara (incorporated areas)

Cupertino

Milpitas

Palo Alto

San Jose

Sunnyvale

County of Sacramento (selected areas)

Citrus Heights

Elk Grove

Folsom

Is PACE Financing

For You?

Self-Qualification Questionnaire

1. Do you own a commercial property (i.e., residential properties

with more than 4 units and all other properties)?

2. Is maintaining your cash reserves and/or credit capacity a

priority?

3. Do equity requirements make it difficult to find bank financing for

improvement projects?

4. Is improving cash flow an important investment criterion?

5. Do you value the option to transfer the outstanding balance of

financing for property improvements to the next owner if you sell

your property before the financing is fully paid-off?

6. Do you have an appetite for investment tax credits and

depreciation tax benefits?

7. Are the mechanical systems (e.g. HVAC, water heating), lighting

systems, and/or plumbing fixtures in your building(s) over 10

years old?

8. Does your property have deferred maintenance issues?

9. Do you avoid investing in energy-efficiency upgrades because

your property is tenanted?

10. If you were to install solar panels, would you prefer to own them

(as compared to leasing) in order to take advantage of tax credits

and depreciation tax benefits?

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

If you answered “yes” to the majority of these questions, Figtree PACE is your best financing option!

Contact a Participating Contractor or Figtree Energy Resource Company for resources to help you reach your energy-savings goals.

Www.FigtreeCompany.com — 877.577.7373

How to Apply for

PACE Financing

Information You’ll Need

Assessor’s Parcel Number (APN)

Can be found on a prior property tax statement

Current Mortgage Balance (if applicable)

Original Mortgage Balance (if applicable)

Check for payment of Application Fee of $395

Please submit by mail upon completing application online

Supporting Documents

Listed in Application Form (e.g. Organizational Documents if not owned by an individual)

A copy of your property tax statement will help you complete the application.

Apply Online

How to Apply

1. Visit www.FigtreeCompany.com

2. Click “Apply for Financing” (circled at left)

3. Choose the “Commercial” option

4. Proceed with instructions on the Application

Form

5. Mail your Application Fee and Supporting

Documents

Apply by Mail

If you prefer to fill out a paper application to submit by mail, please download the form from

www.figtreecompany.com/pdf/pace-application-commercial.pdf or contact a Figtree Representative at 877.577.7373.