HomeMy WebLinkAboutVerogy - Town of Montville - Lease Agreement (Landfill) (Executed) 02282022
LEASE AGREEMENT
BY AND BETWEEN
Town of Montville
(LANDLORD)
AND
VCP Realty, LLC
(TENANT)
A-1
EXHIBIT A
BASIC TERMS AND CONDITIONS
1. Initial Term: Twenty (20) years
2. Extension Periods: Three (3) extension periods of five (5) years each
3. Basic Rent:
LEASE
YEARS
ANNUAL BASIC
RENT
($/MW/Year)
MONTHLY
INSTALLMENT
($/MW/Month)
ESTIMATED
TOTAL ANNUAL
PAYMENT
ESTIMATED
MONTHLY
PAYMENT
1 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
2 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
3 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
4 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
5 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
6 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
7 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
8 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
9 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
10 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
11 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
12 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
13 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
14 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
15 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
16 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
17 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
18 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
19 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
20 $52,018.00 per MW
DC per year
$4,334.83 per MW
DC per month
$40,000/year $3,333/month
4. Installation Type: Ground-Mount
B-1
EXHIBIT B
SOLAR ARRAY DESCRIPTION
Estimated System Size: 768.96 kW DC (600 kW AC)
Module Power (W): 540 Watts
Module Quantity: 1,424
Array Tilt: 25°
Array Azimuth: 25°
* All technical specifications and the final system size are subject to final system engineering and design and applicable governmental and utility approvals.
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EXHIBIT C
GENERAL TERMS AND CONDITIONS
ARTICLE I.
Description of Leased Premises
Section 1.1 - Leased Premises. The Landlord hereby leases to the Tenant that certain portion of
that certain parcel of land located at the Site Address indicated on the first page of this Agreement and
containing approximately three and one-half (3.5) acres of land, together with any and all improvements,
appurtenances, rights, privileges and easements benefiting, belonging or pertaining thereto and any right,
title and interest of the Landlord in and to any land lying in the bed of any street, road or highway to the
center line thereof in front of or adjoining said parcel of land, which is more particularly described in
Exhibit D, attached hereto and made a part hereof (collectively the “Leased Premises” or “Premises”). In
connection with the Leased Premises, Landlord also hereby grants to Tenant a royalty-free, irrevocable
license coterminous with the Lease Term (as defined hereinafter), and for so long as needed after expiration
or termination, to other portions of the property that are necessary and appropriate for (i) Tenant’s access
to the Leased Premises, including ingress and egress rights to the property; (ii) the delivery, temporary
storage and staging of materials, equipment and the components of the Solar Array (as defined hereinafter);
(iii) the interconnection of the Solar Array to the electrical infrastructure of the local electric utility; and
(iv) other related and ancillary uses that from time to time may be useful or necessary in connection with
the siting, erection, construction, reconstruction, installation, replacement, relocation, removal, operation,
repair and maintenance of the Solar Array on the Premises (collectively in the case of (i), (ii), (iii) and (iv),
the “Licensed Area”).
Section 1.2 - Initial Term. The initial term of this Lease shall commence on the Commencement
Date (as hereinafter defined), and shall end on the date which is the number of years indicated on Exhibit
A as the “Initial Term” from the end of the calendar month in which the Commercial Operation Date (as
defined hereinafter) occurs, which time period is referred to herein as the “Initial Term”.
When such dates have been determined, Landlord and Tenant agree to execute a memorandum in
recordable form setting forth the Commencement Date and Lease Term in the form attached hereto as
Exhibit E.
Section 1.3 - Options to Extend. In addition, provided that Tenant is not materially in default in
the performance of any of its obligations under this Lease beyond applicable notice and cure periods, Tenant
shall have the option to extend the term of this Lease for three (3) extension periods of five (5) years each
(each an “Extension Period”). If Tenant elects to exercise any such Extension Period, it shall do so by
giving notice of such election to Landlord at any time during the term of this Lease on or before the date
which is ninety (90) days prior to the commencement of the Extension Period for which such election is
exercised. Such Extension Periods shall be upon the same terms and conditions of this Lease, except as
otherwise provided herein. If Tenant fails to send notice of its exercise of any Extension Period in a timely
manner, Landlord shall send Tenant a reminder notice and Tenant shall have an additional thirty (30) day
period after receipt of Landlord’s notice in order to exercise any such Extension Period. The Initial Term
and all Extension Periods, as exercised, are referred to hereafter as the “Lease Term.” In the event that
Tenant does not respond in writing within thirty (30) days after the receipt of Landlord’s reminder notice,
then Tenant shall be deemed not to have exercised the applicable Extension Period and the Tenant agrees
that any right to exercise any future Extension Period has lapsed.
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ARTICLE II.
Development of Project
Section 2.1 - Development Period. The PPA Acquisition Period (as defined herein), the Due
Diligence Period (as defined herein) and any and all Contingency Periods (as defined herein) shall constitute
the “Development Period” for purposes of this Agreement. Starting on the Effective Date and ending on
the date which is one (1) year from the end of the calendar month in which the Effective Date occurs, which
time period is referred to herein as the “Initial PPA Acquisition Period”, Tenant shall endeavor to execute
a contract for the sale of electricity and/or environmental attributes produced by the renewable energy
development at the Premises (a “PPA”). If Tenant successfully executes a PPA within the Initial PPA
Acquisition Period, then the Due Diligence Period shall commence on the commensurate execution date of
such PPA (the “Qualified PPA Execution Date”). If Tenant does not execute a PPA within the Initial PPA
Acquisition Period, but Tenant is continuing to diligently pursue the acquisition of a PPA, then Tenant shall
be afforded an additional six (6) months within which to execute a PPA (the “Extended PPA Acquisition
Period”, and together with the Initial PPA Acquisition Period, the “PPA Acquisition Period”). If Tenant
successfully executes a PPA within the Extended PPA Acquisition Period, then the Due Diligence Period
shall commence on the Qualified PPA Execution Date. If Tenant does not execute a PPA within the
Extended PPA Acquisition Period, Landlord shall have the right to terminate this Lease via notice to Tenant,
such notice to be provided to Tenant within thirty (30) days of the last day of the Extended PPA Acquisition
Period (“Landlord PPA Acquisition Termination Notice”). Upon receipt of the Landlord PPA Acquisition
Termination Notice, Tenant shall have the right to provide Landlord with evidence that a PPA has been
executed within the PPA Acquisition Period. If such evidence is provided by Tenant to Landlord within
thirty (30) days of receipt of the Landlord PPA Acquisition Termination Notice, and such evidence is not
subject to reasonable dispute by Landlord, this Lease shall be deemed not terminated, and in full force and
effect. In the event there is no evidence provided by Tenant to Landlord that a PPA has been executed
within the PPA Acquisition Period, then thirty-one (31) days after the receipt by Tenant of the Landlord
PPA Acquisition Termination Notice, this Lease shall terminate and shall be null and void, and Landlord
and Tenant shall have no further obligations to one another hereunder, except for obligations which
specifically survive the termination of this Lease. Notwithstanding the foregoing or anything contained
herein to the contrary, Tenant and Landlord may, upon written agreement duly executed by both Tenant
and Landlord, agree to extend the length of the PPA Acquisition Period as they deem necessary.
Prior to the Initial Term, and for a period of time described in this Section 2.1, Tenant shall be
permitted to perform all investigations deemed by the Tenant to be necessary or appropriate to determine,
in the Tenant’s sole discretion, whether the operation of the Leased Premises for Tenant’s intended purposes
is economically and operationally feasible, including without limitation, review of the status of title and
survey matters, the environmental and physical condition of the Leased Premises, and its suitability for
development for Tenant’s intended use (the “Project”). In the event any such investigation or examination
has not been completed by the Tenant during the PPA Acquisition Period, Tenant shall have a period
commencing on the Qualified PPA Execution Date and ending at 12:00 midnight on the date which is one-
hundred twenty (120) days after the Qualified PPA Execution Date (the “Due Diligence Period”) within
which to inspect, examine, and/or investigate the Leased Premises, and all physical, environmental,
geotechnical, financial, title and legal aspects thereof, and the obligations of Landlord hereunder shall be
conditioned upon Tenant being fully satisfied, in its sole discretion, as to all such inspections, investigations,
and/or examinations.
Landlord shall fully cooperate with Tenant in its inspections, examinations, and investigations and
shall use its best efforts to deliver or make available to Tenant no later than thirty (30) days from the
Effective Date those documents set forth on Exhibit F, attached hereto and incorporated herein, which are
in the control or possession of Landlord, its agents or representatives. Throughout the Due Diligence Period,
Tenant shall have access to the Leased Premises to accomplish the foregoing, including, without limitation,
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the conduct of surface and subsurface tests and physical and environmental appraisals and studies and as
provided in Section 2.2 of this Agreement.
In the event that Tenant is not satisfied, in its sole discretion, for any reason or for no reason
whatsoever, Tenant shall have the right, by Tenant or Tenant’s attorney giving Landlord or Landlord’s
attorney a written termination notice (the “Termination Notice”) to terminate this Agreement. If the
Termination Notice is given, this Lease shall terminate and shall be null and void, and Landlord and Tenant
shall have no further obligations to one another hereunder, except for obligations which specifically survive
the termination of this Lease. Tenant may terminate this Lease upon notice to Landlord at any time prior
to the Commencement Date if Tenant, in its sole discretion, determines that the Leased Premises is
unsuitable for its intended use.
Tenant’s obligations under this Agreement shall be subject to Tenant’s receipt of all final, non-
appealable, local, state and federal permits and approvals necessary or appropriate for Tenant’s proposed
development of the Leased Premises and the construction of the Project, and receipt of necessary or
appropriate utility company interconnection approvals for the Project, all on terms and conditions
acceptable to Tenant in its sole discretion (individually, each an “Approval” and collectively, the
“Approvals”) prior to the date which is six (6) months following the first day of the month after the
expiration of the Due Diligence Period (the “Initial Contingency Period”). Tenant shall be permitted to
extend the Initial Contingency Period by written notice to Landlord at any time prior to the expiration of
the Initial Contingency Period for an additional period of six (6) months (the "First Extended Contingency
Period"), provided that Tenant is pursuing its Approvals or Tenant has received its Approvals but one or
more judicial appeals are then pending with respect to the Approvals. Tenant shall further be permitted to
extend the First Extended Contingency Period by written notice to Landlord at any time prior to the
expiration of the First Extended Contingency Period for an additional period of six (6) months (the "Second
Extended Contingency Period"), provided that Tenant is pursuing its Approvals or Tenant has received its
Approvals but one or more judicial appeals are then pending with respect to the Approvals.
The Initial Contingency Period, as the same may be extended by the First Extended Contingency
Period and the Second Extended Contingency Period, are collectively and each, individually, is the
“Contingency Period”. The Parties may agree to extend any portion of the Development Period upon
mutual written agreement.
If Tenant has received all of its Approvals to its satisfaction, Tenant may elect to waive the balance
of the Development Period and proceed to the commencement of the lease.
Landlord agrees to fully cooperate with Tenant in Tenant’s efforts to obtain all Approvals,
including, without limitation, executing and delivery of any applications or consents which require the
signature of the Landlord and publicly supporting such Approvals by attending any hearings or meetings,
as and when reasonably requested by Tenant. Landlord appoints Tenant as its lawful attorney-in-fact
coupled with an interest to execute any such requested application in the name of and on behalf of Landlord
if Landlord fails to do so within fifteen (15) days following receipt of Tenant’s written notice requesting
Landlord’s execution of the subject application.
If Tenant determines, in its sole discretion, that it has not or is unlikely to obtain all necessary or
appropriate Approvals before the end of the Contingency Period, or that any such Approvals contain, or are
likely to contain, unsatisfactory terms or conditions, then Tenant shall have the right, by Tenant or Tenant’s
attorney giving Landlord or Landlord’s attorney a written termination notice (the “Termination Notice”),
to terminate this Agreement. If the Termination Notice is given, this Lease shall terminate and shall be null
and void, and Landlord and Tenant shall have no further obligations to one another hereunder, except for
obligations which specifically survive the termination of this Lease.
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Section 2.2 - Access to Leased Premises. During the Development Period, Landlord may retain
possession and use of the Leased Premises. Tenant, its counsel, surveyors, engineers, lenders, development
partners, agents and other representatives shall have full and continuing access to the Premises and all parts
thereof, as well as to all relevant documents and records of the Landlord as they relate to the title, physical
condition, and development of the Premises, upon 48 hours prior notice to Landlord (which notice may be
given by telephone). Tenant shall use commercially reasonable efforts not to unduly interfere with any
business operations of Landlord. Said right of access shall be for the purpose of performing surveying,
engineering, and environmental tests and studies, test borings, hazardous waste testing, wetland impacts,
physical inspection of the Premises, structural reviews, and such other similar investigatory work as the
Tenant shall consider appropriate. Tenant shall make no permanent alterations to the Leased Premises as
part of its investigations and shall repair or restore any disturbed areas to substantially the same condition
as existing prior to the testing. Prior to accessing the Premises, Tenant shall provide Landlord with a
Certificate of Liability Insurance in the amount of at least $1,000,000 naming Landlord as an additional
insured.
Section 2.3 - Lease Commencement. At any time during the Development Period, Tenant may
give notice to Landlord calling for the delivery of the Leased Premises to Tenant and the commencement
of this Lease. Upon receipt of such notice, Landlord shall select a delivery date that is within forty-five
(45) days of the date Landlord received Tenant’s notice (the “Commencement Date”) and so notify Tenant.
On the Commencement Date, Landlord shall deliver possession of the Leased Premises to Tenant
in substantially the same condition as existing as of the Effective Date of this Lease, free and clear of all
rights of any tenants or parties in possession and subject to only those encumbrances affecting title to the
Leased Premises as set forth on Exhibit G attached hereto and made a part hereof.
ARTICLE III.
Rent
Section 3.1 - Definition of Lease Year. “Lease Year” shall mean, in the case of the first Lease
Year, the number of full and partial calendar months following the Commencement Date of this Lease
through the end of the twelve (12) calendar months following the Rent Commencement Date (as hereinafter
defined). Thereafter, “Lease Year” shall mean each successive twelve (12) calendar month period
following the expiration of the first Lease Year, except that in the event of the termination of this Lease on
any day other than the last day of a Lease Year, then the last Lease Year shall be the period from the end
of the preceding Lease Year to such date of termination.
Section 3.2- Basic Rent. Commencing on the Rent Commencement Date, and continuing for the
remainder of the Lease Term, Tenant shall pay Landlord monthly Basic Rent on the first day of each month,
in advance, in accordance with the schedule set forth on Exhibit A of this Agreement.
For the avoidance of doubt, the solar photovoltaic project to be sited on the Leased Premises, as
more particularly described in Exhibit B, attached hereto and made a part hereof (the “Solar Array”) size
in megawatts (“MWs”) direct current (“DC”) for purposes of the above rent calculation shall be that which
is listed on the final as-built drawings completed by the engineer of record at the time of the Rent
Commencement Date. In the event the final as-built drawings issued by the engineer of record after the
Solar Array has reached the Commercial Operation Date are not available as of the Rent Commencement
Date, the Solar Array size in MW DC listed on the issued for construction drawings shall be used for
purposes of the above rent calculation; provided that, upon the issuance of the final as-built drawings, if the
final as-built drawings detail a different project size in MW DC, the calculation for Basic Rent shall be
adjusted to reflect the as-built Solar Array system size and monthly payments for Basic Rent shall be
adjusted accordingly on a going forward basis. For purposes of this Lease, “Commercial Operation Date”
shall mean the Solar Array has been approved for interconnected operation by the interconnecting utility
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company, Tenant has completed commissioning tests of the Solar Array, and the Solar Array has
commenced regular operations.
The “Rent Commencement Date” shall be the date that is the first (1st) day of the third (3rd) full
month following the Commercial Operation Date. Payments for any partial month shall be prorated.
Section 3.3 - Place of Payment. Payment of Basic Rent shall be made to the Landlord at the address
appearing at the end of this Lease, or to such other person, legal entity or address as the Landlord shall
designate by written notice to the Tenant.
ARTICLE IV.
Use
Section 4.1 - Use of Premises. The Leased Premises may be used for placement of a Solar Array
and any lawful purpose, or for no use, during the Lease Term, subject to applicable zoning regulations.
Tenant shall have the unrestricted right throughout the Lease Term to construct one or more Solar
Arrays and other improvements on the Leased Premises and to modify or demolish such Solar Arrays and
improvements from time to time, with or without constructing replacement improvements thereon, all
subject to all applicable laws and regulations, but without prior notice or consent by Landlord. Title to all
Solar Arrays and other improvements constructed on the Leased Premises by Tenant shall remain in
Tenant’s name throughout the Lease Term.
Section 4.2 - Compliance With Laws and Regulations. Throughout the Lease Term, the Tenant, at
its sole cost and expense, will promptly comply in all material respects with all present and future laws,
ordinances, orders, rules, regulations and requirements of all Federal, State and municipal governments,
departments, commissions, boards and officers with respect to its use of the Leased Premises.
Section 4.3 - Liens. The Tenant shall indemnify and save the Landlord harmless from any claims
for material or labor, or worker’s compensation claims in connection with any repairs or improvements
made by the Tenant, and should any such lien be placed, the Tenant shall have the same removed within
sixty (60) days by bonding or otherwise; and upon failure to do so, Landlord shall have the right to pursue
remedies available pursuant to Article XI of this Lease, or the Landlord shall have the right (but not the
obligation) to take whatever steps are reasonably necessary to have the same removed and the cost thereof,
plus any court costs and reasonable attorneys’ fees, shall be paid by the Tenant to the Landlord.
Section 4.4 - Environmental Indemnification. Tenant represents and warrants that no Hazardous
Substances (as defined below) will be used, stored, treated, disposed of or generated at or on the Leased
Premises by Tenant. Tenant shall promptly take any and all necessary or appropriate remedial action in
response to any use, storage, treatment, generation or disposal of any Hazardous Substances brought by the
Tenant to the Leased Premises. Tenant, its successors and assigns shall indemnify, defend, and hold
harmless Landlord, its employees, agents, officers, directors, members, successors and assigns from any
claims, actions, liabilities or for any violations of Environmental Laws, orders or enforcement actions
relating to or affecting the Leased Premises or for any environmental remediation caused by Tenant’s
delivery of Hazardous Substances to the Leased Premises during the Lease Term.
Landlord, its successors and assigns shall indemnify, defend, and hold harmless Tenant, its
employees, agents, officers, directors, members, successors and assigns from and against any claims,
actions, liabilities, costs or expenses incurred by Tenant with respect to the cleanup, removal, remediation
and disposal in accordance with applicable law of any Hazardous Substances existing on the Premises or
otherwise generated, created, used or introduced by Landlord or its agents or contractors; provided,
however, that Tenant shall have no obligation to cleanup, remove, remediate or dispose of such Hazardous
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Substances. Landlord shall notify Tenant in the event that any such Hazardous Substances are present, near
or pose a material risk to personnel of Tenant or the Solar Array.
As used herein the term "Hazardous Substances" shall mean any hazardous or toxic chemical,
waste, byproduct, pollutant, contaminant, compound, product or substance, including without limitation,
asbestos, polychlorinated byphenyls, petroleum (including crude oil or any fraction thereof), and any other
chemical substance or material the exposure to, or manufacture, possession, presence, use, generation,
storage, transportation, treatment, release, disposal, abatement, cleanup, removal, remediation or handling
of which is prohibited, controlled or regulated by any of the Environmental Laws. The term "Environmental
Laws" shall mean all applicable federal, state, county and local statutes, laws, regulations, rules, ordinances,
codes, standards, guidelines, orders, licenses and permits of any governmental authorities relating to
environmental, health or safety matters, including by way of illustration and not by way of limitation, the
Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act of 1970, the
Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, and the Toxic Substances Control Act (including any amendments
or extensions to any of the foregoing and any rules, regulations, standards or guidelines issued pursuant to
any of such laws).
Tenant acknowledges that the Leased Premises are over a capped landfill and has the requisite
environmental concerns and no indemnification is intended for the current condition of the property.
Section 4.5 – Premises Work. During the Lease Term, Landlord may potentially need to perform
maintenance or repair work on the Premises that could have adverse impacts to the Solar Array and/or its
expected solar energy output (including but not limited to a potential need to temporarily shut down the
Solar Array) (any such work, the “Landlord Premises Work”). Landlord shall not perform any such
Landlord Premises Work which would likely adversely affect the Solar Array or its access to solar insolation
without Tenant’s prior written consent, and Landlord shall use its best efforts to minimize any such requests.
In the event any such Landlord Premises Work is necessary and consented to by Tenant, Landlord shall
reasonably accommodate Tenant to minimize any Solar Array disruption or outage.
If Landlord wishes to perform Landlord Premises Work, Landlord shall give prior written notice to
Tenant, setting forth the work to be undertaken (except for emergency repairs, for which notice may be
given by telephone if practicable), and give Tenant the opportunity to advise Landlord in performing the
Landlord Premises Work in a manner that avoids damage to the Solar Array, but, notwithstanding any such
advice, Landlord shall be responsible for all damage (including any adverse impact on the performance of
the Solar Array or its access to solar insolation) to the Solar Array caused by such work, except for those
due to the failure or negligence of Tenant. Any and all of Landlord’s maintenance or repair work will be
done in a good and workmanlike manner and in compliance with all applicable laws, codes and permits. If
the Landlord Premises Work requires the disassembly or removal of portions of the Solar Array, Tenant
shall be responsible to perform any such disassembly, removal and reinstallation of the Solar Array, but
Landlord shall be responsible for all costs and expenses associated with the disassembly, removal and
reinstallation, including any applicable storage costs for the Solar Array and related equipment. Except as
expressly permitted under this Agreement, Landlord shall not modify the Solar Array or affix or remove
any accessory to the Solar Array.
If Tenant provides prior written consent to Landlord to perform any such Landlord Premises Work
pursuant to this Section 4.5, and the delivery of solar energy from the Solar Array is reduced for any period
of time during the performance of such maintenance or repair work or there is adverse impact on the
performance of the Solar Array or its access to solar insolation, Landlord shall pay Tenant: (1) the applicable
kWh rate for the pro-rata expected generation that would have been produced during such period; (2) the
fair market value of any Environmental Attributes (as defined below) related to such pro-rata expected
generation, as reasonably determined by Tenant; (3) the value of any reduced, lost or forfeited tax attributes,
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incentives or benefits associated with the ownership or operation of the Solar Array, including but not
limited to any local, state or federal investment or production tax credits or subsidies, depreciation
deductions, and installation or production-based incentives; and (4) any other lost revenue or benefit
associated with the ownership or operation of the Solar Array or any reduced deliveries of solar energy
from the Solar Array during the period of disruption, all as reasonably determined by Tenant. Tenant shall
be permitted to offset any such lost revenues as described above from future payments of Basic Rent or
send Landlord an invoice for such lost revenues, at Tenant’s discretion. In the event Tenant elects to send
Landlord an invoice for such lost revenues, Landlord shall pay such amount within twenty (20) days of its
receipt of the invoice. For purposes of this Agreement, “Environmental Attributes” shall mean, without
limitation, any and all environmental credits, benefits, emissions reductions, offsets and allowances,
howsoever entitled, including but not limited to carbon trading credits, portfolio credits, renewable energy
credits or certificates, emissions reduction credits, emissions allowances, green tags, tradable renewable
credits, or Green-e® products.
Tenant is responsible for removal of all vegetation on the Premises for the duration of the Lease.
ARTICLE V.
Quiet Enjoyment
Landlord represents and warrants that it is the owner of the Leased Premises in fee simple, free and
clear of all liens and encumbrances, except as shown on Exhibit G, and has the right and lawful authority
to enter into this Lease, without approval of any other party. The Tenant shall, upon paying the rent reserved
hereunder and observing and performing all of the terms, covenants and conditions on the Tenant’s part to
be observed and performed, peaceably and quietly, have and hold the Leased Premises, without hindrance
or molestation by any person or persons claiming by, through or under the Landlord, subject, however, to
the terms of this Lease.
ARTICLE VI.
Utilities; Taxes
As of the date on which possession of the Leased Premises is delivered to Tenant, Tenant shall pay
all charges for utilities associated with the construction and operation of the Solar Array, including but not
limited to gas, heat, water, electricity, power and telephone or other communications service used, rented
or supplied, and Tenant shall indemnify the Landlord against said liability or damages for such accounts.
In addition, effective as of the Commencement Date and continuing for the Lease Term, Tenant shall pay
for all additional expenses associated with the maintenance, operation and/or use of the Leased Premises
by Tenant, including personal property taxes, property insurance and operating expenses. The Parties
acknowledge and agree that Personal Property taxes are part of the Basic Rent payments and will not be
separately billed.
Each Party shall be responsible for all income, gross receipts, ad valorem, personal property or real
property or other similar taxes and any and all franchise fees or similar fees assessed against it due to its
ownership of its property (i.e., in the case of Landlord, the Premises; in the case of Tenant, the Solar Array).
The Parties shall administer and implement this Agreement with the intent to minimize taxes.
ARTICLE VII.
Insurance
Section 7.1 - Coverage. Tenant shall keep the Leased Premises insured against damage or
destruction by fire, and such other perils as are, from time to time, included in standard fire insurance policy,
for the full insurable value thereof, which for the purposes hereof shall mean the actual replacement cost
without deduction for depreciation, but shall not include “uninsurables” (i.e., footings, underground piping,
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etc.). All of said insurance shall be maintained for the protection of Landlord, Landlord’s lender, Tenant
and Tenant’s lender, and each shall be listed as an additional insured as their interest may appear in all
policies of insurance. The proceeds of such insurance in case of loss or damage shall be applied on account
of the obligation of Tenant to repair and/or rebuild the Leased Premises pursuant to Article VIII to the
extent that such proceeds are required for such purpose.
Section 7.2 - General Liability Insurance. During the Lease Term, the Tenant agrees to maintain
in force and effect a commercial general liability insurance policy, with limits of at least Two Million
Dollars ($2,000,000.00) per occurrence, in a financially responsible insurance company or companies
qualified to do business in the state in which the Leased Premises are located. Said insurance shall be
maintained for the protection of both Landlord, Landlord’s lender, Tenant, and Tenant’s lender and each
shall be named insured as their interest may appear in all policies of insurance. Said insurance shall be
primary and noncontributory; provide for severability of interest; provide that an act or omission of one of
the insureds that would void or otherwise reduce coverage will not reduce or avoid the coverage as to other
insureds. Such policy shall contain a provision that it cannot be canceled without thirty (30) days prior
written notice.
Section 7.3 - Release of Subrogation.
(a) Each party covenants and agrees to obtain from its insurance carrier a waiver of
subrogation rights against the other, if the same is available, with the provision that if there is any extra cost
for the same, the party benefited by such waiver shall be afforded an opportunity to pay the extra cost and
receive the benefit of the waiver; and
(b) In case of damage to the Leased Premises or to any other property of the Landlord
or the Tenant by any cause within the scope of such insurance, whether such damage be caused by the
negligence of either party to this Lease or by any party for whom either party to this Lease may be
responsible, neither party to this Lease will look to the other, its agents, employees, invitees, assignees or
subtenants for reimbursement to its insurer or to any third party against whom it may have a claim therefor.
This subsection shall be effective as to the risks insured against under any particular insurance policy only
during such time as such policy shall permit an executory waiver of subrogation without additional premium
therefor or if the party benefited by such waiver pays any additional premium.
Section 7.4 - Certificates of Insurance. On or before the date upon which possession of the Leased
Premises is delivered to Tenant, Tenant shall provide Landlord with certificates of insurance certifying that
all insurance required to be carried by Tenant under the terms of this Lease is in full force and effect. Prior
to the expiration of any such insurance policy, Tenant shall furnish Landlord with a new certificate of
insurance certifying that such policy has been renewed or replaced. All insurance policies carried under
this Article, and the certificates for such policies, shall provide for ten (10) days written notice to Landlord
of any cancellation for non-payment and (30) days written notice to Landlord of any cancellation or non-
renewal of such policy.
Section 7.5 - Qualification of Insurers. All insurance provided for in this Lease shall be effected
under enforceable policies issued by insurers of recognized responsibility, licensed to do business in the
Project State identified on the first page of this Agreement.
Section 7.6 - Indemnification. The Tenant shall defend, indemnify and save harmless the Landlord
and its agents and employees against and from all liabilities, suits, actions, damages, liability and expense,
penalties, claims and costs which may be imposed upon or incurred by or asserted against the Landlord or
its agents or employees by reason of, or in any way arising out of, the Tenant's use or occupancy of the
Leased Premises in accordance with the terms of this Lease after the execution of this Lease to the extent
occasioned wholly or in part by any act or omission of the Tenant, its agents, employees, contractors or
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invitees; excluding however, any matters arising out of the negligence or willful conduct of Landlord, its
agents, employees, contractors or invitees.
The Landlord shall defend, indemnify and save harmless the Tenant and its agents and employees
against and from all liabilities, suits, actions, damages, liability and expense, penalties, claims and costs
which may be imposed upon or incurred by or asserted against the Tenant or its agents or employees by
reason of, or in any way arising out of, the Landlord’s use or occupancy of the Leased Premises to the
extent occasioned wholly or in part by any act or omission of the Landlord, its agents, employees,
contractors or invitees, excluding however, any matters arising out of the negligence or willful conduct of
Tenant, its agents, employees, contractors or invitees.
ARTICLE VIII.
Condemnation
Section 8.1 - Condemnation - Taking of All. If title to the whole of the Leased Premises shall be
taken or condemned by any competent authority or conveyed in lieu of condemnation for any public or
quasi-public use, all rental and other charges paid or payable by Tenant hereunder shall be prorated, as of
the date of vesting of title in such condemning authority, and the total award made with respect to the
Leased Premises, less all expenses incurred in connection with the condemnation proceedings, shall be
apportioned between Landlord and Tenant.
Section 8.2 - Condemnation - Taking of Substantially All. If title to any substantial part of the
Leased Premises shall be taken or condemned by any competent authority or conveyed in lieu of
condemnation for any public or quasi-public use, Tenant shall have the option to surrender and terminate
this Lease by giving written notice of such election to Landlord at any time after Tenant has been notified
of any pending condemnation action. In the event that Tenant exercises its option to surrender and terminate
this Lease, all of the rental and other charges paid or payable by Tenant hereunder shall be prorated as of
the date Tenant vacates the Leased Premises, and the total award made with respect to the Leased Premises,
less all expenses incurred in connection with the condemnation proceedings, shall be apportioned between
Landlord and Tenant.
Section 8.3 - Condemnation - Taking of Less Than All. If title to part of the Leased Premises shall
be taken or condemned by any competent authority or conveyed in lieu of condemnation for any public or
quasi-public use, and this Lease is not or cannot be terminated by Tenant, then this Lease shall continue in
force and effect, and Tenant shall, at its expense, repair any damage to the Solar Array or improvements on
the Leased Premises and the Basic Rent thereafter payable for the remainder of the Lease Term shall be
reduced in the proportion that the area of the Leased Premises taken or conveyed to the condemning
authority bears to the area of the entire Leased Premises prior to the taking or conveyance and the total
award made with respect to the Leased Premises, less all expenses incurred in connection with the
condemnation proceedings, shall be apportioned between Landlord and Tenant, in accordance with the
following provisions.
Whether such condemnation or sale in lieu thereof shall be for all or part of the Leased Premises
and the Solar Arrays and improvements thereon, subject to the immediately succeeding paragraph, Landlord
and Tenant shall each have the right to prosecute for and to receive such separate awards and portions of
lump sum awards as may be allocated to their respective interests in the Leased Premises, it being the intent
of the parties that Landlord shall be entitled to that portion of the award applicable to the land as unimproved
exclusive of the Solar Arrays and improvements thereon, but encumbered by this Lease, and Tenant shall
be entitled to the balance of the award which shall include the value of Tenant’s leasehold estate and the
Solar Arrays and improvements on the Leased Premises. If the condemning authority does not make
separate awards and allocations as above provided, then the allocations based on the principles set forth in
this Section shall be determined by arbitration.
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ARTICLE IX.
Mortgages
Section 9.1 - Landlord’s Right to Mortgage. Landlord reserves the right to mortgage its fee interest
in the Leased Premises from time to time throughout the Lease Term (as applicable “Fee Mortgage”). All
Fee Mortgages shall be subject to this Lease and the Tenant’s rights hereunder. Landlord agrees to cause
all Fee Mortgage mortgagees to execute agreements in favor of Tenant and any leasehold mortgagees in
form and substance acceptable by Tenant or any leasehold mortgagee, as the case may be, confirming that
in the event of a foreclosure of the Fee Mortgage such fee mortgagee shall recognize the rights of Tenant
and any leasehold mortgagees under this Lease and not disturb Tenant’s tenancy hereunder except in
accordance with the terms hereof. Landlord agrees to deliver an agreement in the form attached hereto as
Exhibit H, or otherwise in form and substance acceptable to Tenant or any leasehold mortgagee, as the
case may be, from the holder of any Fee Mortgage currently encumbering the Leased Premises consenting
to this Lease and any amendments thereto, providing the non-disturbance protection required hereunder
and agreeing that any casualty and condemnation proceeds shall be applied in accordance with the
provisions of this Lease within thirty (30) days after the date of execution of this Lease.
Section 9.2 - Tenant’s Right to Mortgage. Tenant shall have the right to mortgage its leasehold
interest in the Leased Premises pursuant to this Lease from time to time throughout the Lease Term (as
applicable, “Leasehold Mortgage”).
Section 9.3 - Assignment by Mortgagee as Successor to Tenant. If any leasehold mortgagee shall
acquire title to Tenant’s interest in this Lease, by foreclosure of a mortgage thereon or by assignment in
lieu of foreclosure or by an assignment from a nominee or wholly owned subsidiary corporation of such
mortgagee, or under a new lease pursuant to this Article IX, such mortgagee may assign such Lease, and
notwithstanding anything contained in Article X hereof shall thereupon be released from all liability for the
performance or observance of the covenants and conditions in such Lease contained on Tenant’s part to be
performed and observed from and after the date of such assignment, provided that the assignee from such
mortgagee shall have assumed such lease in accordance with Article X hereof.
Section 9.4 - Estoppel Certificate. Landlord and Tenant shall, from time to time upon written
request by the other, execute and deliver to the other party and their mortgage lenders or potential lenders,
if requested, within ten (10) days of such written request, a written declaration in recordable form: (1)
ratifying this Lease; (2) expressing the commencement and termination dates thereof and any renewal
terms; (3) certifying that this Lease is in full force and effect and has not been assigned, modified,
supplemented or amended (except by such writings as shall be stated); (4) stating that all conditions under
this Lease to be performed by the other party have been satisfied, or stating those alleged to remain
unsatisfied; (5) stating that there are no defenses or offsets against the enforcement of this Lease by such
party, or stating those claimed by such party; (6) stating the amount of advance rent, if any, paid by Tenant;
(7) stating the date to which rent has been paid; and (8) stating such other matters as are reasonably
requested by any permitted leasehold mortgagee.
Section 9.5 - No Joint Venture. Notwithstanding any obligation from one party to the other herein,
the parties hereto state that they have not created and do not intend to create by this Lease a joint venture
or partnership relation between them; it being their sole purpose and intent to create only a landlord-tenant
relationship.
ARTICLE X.
Assignment
Tenant shall have the right to assign Tenant’s interest in this Lease from time to time throughout
the Lease Term provided each such assignee assumes all of Tenant’s obligations under the Lease, which
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such assignment shall require the written consent of Landlord, which shall not be unreasonably withheld.
After the completion of the Project on the Leased Premises, Landlord agrees that Tenant shall be released
from any further obligations under this Lease if Landlord is provided with a fully executed original
assignment. In all instances, Tenant shall be permitted to (i) make an assignment to an affiliate of Tenant
or a direct or indirect subsidiary of Tenant to whom Tenant also transfers the Solar Array, (ii) make an
assignment through merger, consolidation or sale of all or substantially all of Tenant’s stock or assets
including the Solar Array, or (iii) sell, transfer, assign or pledge its interest in this Lease to Tenant’s lender
or financing party in connection with the financing of the construction, installation and operation of the
Solar Array.
ARTICLE XI.
Default
Section 11.1 - Default by Tenant. Each of the following events shall be defaults under this
Agreement with respect to Tenant (each, a “Tenant Event of Default”):
(a) If default shall be made in the due and punctual payment of any Basic Rent payable
under this Lease or any part thereof, when and as the same shall become due and payable, and such default
shall continue for a period of fifteen (15) days after written notice from Landlord to Tenant specifying the
items in default; provided that before any termination of this Lease, Tenant shall be afforded an additional
fifteen (15) day written notice and opportunity to cure; or
(b) Neglect or failure by the Tenant to perform or comply with any of the agreements,
terms, covenants or conditions of this Lease, other than those referred to in subsection (a) above, for a
period of sixty (60) days after written notice from the Landlord to the Tenant specifying the items in default,
or in the case of a default which cannot with due diligence be cured within such sixty (60) day period,
failure of the Tenant within such sixty (60) day period to commence to cure the same and thereafter to
prosecute the curing of such default with due diligence and to completion; or
(c) The commencement of any bankruptcy proceedings by or against the Tenant,
provided, however, the commencement of an involuntary proceeding against Tenant shall not be a Tenant
Event of Default if Tenant is diligently pursuing the dismissal of any such involuntary proceeding and
accomplishes such cure within one hundred eighty (180) days.
Section 11.2 - Landlord’s Remedies. Subject to the provisions of Article IX, if a Tenant Event of
Default shall have occurred and be continuing, Landlord shall give written notice to Tenant specifying the
Tenant Event of Default (the “Tenant Event of Default Notice”) and provide Tenant with fifteen (15) days
in which to cure such Tenant Event of Default. If Tenant has not cured such Tenant Event of Default within
fifteen (15) days of its receipt of the Tenant Event of Default Notice, Landlord may, at its election and in
addition to all other rights and remedies provided at law, in equity or elsewhere herein, terminate this Lease
by giving Tenant written notice of Landlord’s intention to do so (the “Landlord Termination Notice”).
Upon the fifteenth (15th) day next succeeding the delivery of such Landlord Termination Notice, if Tenant
still has not cured such Tenant Event of Default, this Lease shall expire and terminate on such date and all
right, title and interest of Tenant hereunder shall end on such date, but Tenant shall remain liable for all
sums accruing prior to the termination of the Lease, plus any other sums due and payable pursuant to this
Section 11.2. Upon any such termination, Tenant shall be afforded appropriate time to remove the Solar
Arrays from the Leased Premises.
If a Tenant Event of Default occurs and Landlord elects not to terminate this Lease, then Landlord
shall have the immediate right, pursuant to legal process, if any be applicable, to pay any sums or do any
act on behalf of Tenant, in order to cure a default by Tenant, and any sums expended by Landlord, together
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with interest thereon at a rate of twelve percent (12%) per annum, shall be immediately due and payable by
Tenant to Landlord.
In addition to the foregoing, if Tenant shall fail to promptly cure any non-monetary default and
such default has created an emergency situation or risk of injury to person or property, Landlord shall be
entitled to notify Tenant of its intention to cure such default, and if Tenant fails to immediately take action
to effect such cure, Landlord shall be entitled to cure such default and Tenant shall reimburse Landlord for
all reasonable costs incurred by Landlord in effecting such cure, including reasonable attorneys’ fees
incurred.
Section 11.3 - Default by Landlord and Tenant’s Remedies. If Landlord shall fail to observe or
perform any provision hereof and such failure shall continue for thirty (30) days after notice to Landlord of
such failure, then a default under this Agreement with respect to Landlord shall exist (each, a “Landlord
Event of Default”); provided, however, that in the case of any such failure which cannot with due diligence
be cured within such thirty (30) day period, if Landlord shall commence promptly to cure the same and
thereafter prosecute the curing thereof with due diligence, the time within which such failure may be cured
shall be extended for such period as is necessary to complete the curing thereof with due diligence, unless
such Landlord Event of Default would cause Tenant to be in default, beyond applicable notice and cure
periods, under a sublease, in which event Landlord shall not have any longer cure period than twenty (20)
days prior to the end of such cure period given to Tenant under the applicable sublease, provided that Tenant
informs Landlord in writing of the length of such cure period. Tenant shall have the right to cure any
Landlord Event of Default and offset the cost of such cure from Basic Rent due hereunder; provided that
any such offset from Basic Rent shall not exceed fifty percent (50%) of the then applicable monthly
installment(s) of Basic Rent due and payable by Tenant; provided, further, that Tenant shall be entitled to
continue to offset from Basic Rent until such time as Tenant has recouped all of its expenditures from curing
such Landlord Event of Default. Such deductions from rent by Tenant shall not constitute a default by
Tenant unless Tenant shall fail to pay the amount of such deduction within thirty (30) days after final
adjudication that such amount is owing to Landlord and all appeal periods have expired without the filing
of an appeal.
If a Landlord Event of Default shall have occurred and be continuing, and Landlord fails to cure
any such Landlord Event of Default within ten (10) days after the date of an additional written notice from
Tenant to Landlord, Tenant may terminate this Lease by giving Landlord notice of Tenant’s intention to do
so (the “Tenant Termination Notice”). Upon the fifteenth (15th) day next succeeding the giving of such
Tenant Termination Notice, this Lease and the estate hereby granted shall expire and terminate on such date
as fully and completely and with the same effect as if such date were the date herein fixed with the expiration
of the Lease Term, and Basic Rent shall be apportioned as of such date and Landlord shall promptly refund
to Tenant any Basic Rent theretofore paid which is allocable to the period subsequent to such date. In
addition, Tenant shall have any and all additional remedies available to it at law or in equity.
Section 11.4 - Non-Waiver. The Landlord’s or Tenant’s failure to act upon a breach of any of the
covenants of this Lease by the other party shall in no way constitute a waiver of the rights of such party, at
any time in the future, to act upon such default; nor shall any such failure to act prevent the Landlord or
Tenant from acting in the event of any other or further breach of the other party’s covenants. No provision
of this Lease shall be deemed to have been waived unless such waiver is in writing signed by the Landlord
and Tenant.
Section 11.5 – Attorneys’ Fees. In the event that either party to this Lease brings an action against
the other to enforce any covenant of this Lease, including actions for rent or other payments due and actions
in summary process, the prevailing party shall be indemnified by the other party against all legal costs and
charges, including reasonable attorneys’ fees.
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ARTICLE XII.
Termination and Surrender
Section 12.1 - Condition of Premises. Upon expiration or other termination of this Lease, the Solar
Arrays and any improvements constructed on, stored at, or brought onto the Leased Premises by Tenant,
including any trade fixtures or signs, shall be removed by Tenant, and the Leased Premises shall be restored
to substantially the same condition that existed upon the Commencement Date of the Lease, normal wear
and tear excepted and also excluding any need for Tenant to remedy site work (including, for example and
without limitation, tree removal and site grading, if applicable) that was performed by Tenant to prepare
the Leased Premises for the installation of the Solar Array (collectively, the “Tenant Removal Obligation”).
All trade fixtures and signs, whether by law deemed to be a part of the realty or not, installed by the Tenant
at any time or anyone claiming under the Tenant, shall remain the property of the Tenant or persons
claiming under the Tenant and may be removed by the Tenant or anyone claiming under the Tenant at any
time or times during the Lease Term. If Tenant does not complete the Tenant Removal Obligation within
one hundred twenty (120) days after expiration or other termination of the Lease, or such additional time
as may be granted by Landlord (the “Tenant Removal Period”), Landlord shall have the right, at its option
and upon prior written notice to Tenant, (a) to remove the System from the Premises and store the System,
or sell it for salvage value, and (b) restore the Premises to substantially the same condition that existed as
of the Commencement Date of the Lease, reasonable wear and tear excepted, all at Tenant’s sole cost and
expense, including any warehousing costs but less any actual sales amount for salvage; in the event that the
sales amount for salvage exceeds the cost and expenses Landlord incurs to remove the System, restore the
Premises, and sell the equipment, then such excess proceeds shall be paid to Tenant..
Section 12.2 - Holding Over. If the Tenant remains on the Leased Premises beyond the expiration
of the Lease Term or any renewal or extension thereof, without the written consent of the Landlord, such
holding over shall be deemed to create a month to month tenancy at a rate equal to one hundred and twenty-
five percent (125%) of the monthly Basic Rent, subject to all other terms and conditions of this Lease in
effect immediately prior to such expiration, except those relating to the term of this Lease.
ARTICLE XIII.
Intentionally Omitted
ARTICLE XIV.
Concluding Provisions
Section 14.1 - Amendments. This Agreement may not be amended, modified, altered or changed
in any respect whatsoever except by a further agreement in writing, fully executed by each of the parties
hereto.
Section 14.2 - Brokerage. The Landlord and the Tenant hereby represent and agree that they have
neither communicated nor dealt with any real estate broker or agent in connection with the Leased Premises
or the transaction contemplated herein. The Landlord and the Tenant agree that if either has communicated
or dealt with any other real estate broker or agent who makes a claim for commission in connection with
this transaction, then the party so communicating or dealing shall indemnify and hold the other party
harmless against any costs or expenses, including the cost of defense, resulting from any such claim.
Section 14.3 - Joint Effort. Preparation of this Agreement has been a joint effort of the parties, and
the resulting document shall not be construed more severely against one of the parties than the other.
Section 14.4 - Captions. The captions of this Agreement are for convenience and reference only
and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any
provision hereof.
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Section 14.5 - Notice. Any notice, demand, offer or other written instrument (“Notice”) required
or permitted to be given, made or sent under this Lease shall be in writing, signed by or on behalf of the
party giving such Notice and shall be hand delivered or sent, postage prepaid, by Federal Express or similar
overnight delivery, or by Registered or Certified Mail, Return Receipt Requested, addressed to the Landlord
Notice Information or Tenant Notice Information, as applicable, that appears on the first page of this
Agreement.
Any Notice to be given to the estate of any deceased or incompetent person shall be addressed to
the personal representative of such deceased or incompetent person at the address of such representative or,
if there is no personal representative, to the estate of the deceased or incompetent person at the address set
forth in this Section.
Either party may change its address set forth in this Section by giving Notice to the other party, and
if applicable, to the holder of any leasehold mortgage, in accordance with this Section.
Notice shall be effective upon hand delivery or, if by registered or certified mail or Federal Express
or similar overnight delivery, the date of receipt or rejection evidenced on the return receipt.
Section 14.6 - Arbitration. In the event of any dispute concerning the condemnation award
proceeds pursuant to Article VIII among or between any party bound by the terms of this Agreement, such
dispute shall be settled by arbitration at the local office of the American Arbitration Association in
accordance with the rules of the American Arbitration Association as then existing, and judgment upon the
award rendered may be entered in any court having jurisdiction thereof.
Section 14.7 - Notice of Lease. This Lease shall not be recorded, but a memorandum of lease (the
“Memorandum”) conforming to the requirements of the law of the Project State identified on the first page
of this Agreement shall be recorded. All governmental charges attributable to the execution or recording
of this Memorandum shall be paid by the party requiring the recording of the Memorandum.
Section 14.8 - Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original and all of which taken together shall constitute one and the same
instrument.
Section 14.9 - Partial Invalidity. The invalidity of one or more of the phrases, sentences, clauses,
Sections or Articles contained in this Agreement shall not affect the remaining portions so long as the
material purposes of this Agreement can be determined and effectuated. If any portion of this Agreement
may be interpreted in two or more ways, one of which would render the portion invalid or inconsistent with
the rest of this Agreement, it shall be interpreted to render such portion valid or consistent.
Section 14.10 - Transmittal of Lease. This Lease is transmitted for examination only and does not
constitute an offer to lease, and this Lease shall become effective only upon the execution and unconditional
delivery thereof by both parties hereto.
Section 14.11 - Governing Law. This Agreement shall be governed by, construed and enforced in
accordance with the laws of the State of Connecticut without regard to any choice of law or conflict of law
principles.
Section 14.12 - Successors. This Agreement shall be binding upon and inure to the benefit of the
parties and to their respective heirs, personal representatives, successors and assigns.
Section 14.13 - Force Majeure. Except as otherwise specifically provided elsewhere in this Lease,
in any case where either party is required to do any act (other than Tenant’s obligation to pay Basic Rent),
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the time for such performance shall be extended by the period of delays caused by fire or other casualty,
government regulations, adverse weather conditions, acts of god, terrorism or other causes beyond the
reasonable control of such party, and not the result of the fault or negligence of the affected party and such
event or circumstance could not have been prevented or overcome by such party through the exercise of
due diligence.
Section 14.14 - Entire Agreement. This Agreement contains the entire understanding of the parties.
There are no oral understandings, terms or conditions, and no party has relied upon any representation,
express or implied, not contained in this Agreement.
Section 14.15 - Effective Date. This Agreement shall be effective between the parties as of the
date this Agreement is executed by both Landlord and Tenant.
Section 14.16 - Confidentiality. Landlord and Tenant agree that they and their respective agents
and employees will keep the provisions of this Lease in confidence and shall not publish or disclose any of
the terms and provisions hereof at any time during the Lease Term. The restrictions contained in this
Section shall not apply to disclosures which are required to be made by Landlord or Tenant by law, in
connection with litigation, to prospective purchasers, assignees, subtenants, mortgagees, investors, title
companies or to their respective accountants, affiliated entities, attorneys and financial institutions.
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EXHIBIT D
LEASED PREMISES
Site Address: 669 CT-163, Montville, CT 06353 (Parcel ID: 038-056-000)
The “Leased Premises” is the area of the parcel containing the Solar Array, any solar equipment,
the interconnection path, and any access road to the Solar Array, including the area indicated
within the “Limits of Disturbance” shown in the layout on the following page, containing
approximately three and one-half (3.5) acres of land, together with any and all improvements,
appurtenances, rights, privileges and easements benefiting, belonging or pertaining thereto and any
right, title and interest of the Landlord in and to any land lying in the bed of any street, road or
highway to the center line thereof in front of or adjoining said parcel area, and shall include
additional reasonable areas necessary and appropriate for purposes of interconnection of the solar
array to the electrical infrastructure of the local electric utility. A running description of the Leased
Premises will be substituted upon the completion of engineering and a site survey.
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LEASED PREMISES LAYOUT TO FOLLOW]
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EXHIBIT E
MEMORANDUM OF COMMENCEMENT DATE AND LEASE TERM
This Memorandum of Commencement Date and Lease Term is by and between
[____________________], a [STATE] [ENTITY TYPE] with an address of [______________,
__________, __________ ___________] (“Landlord”) and VCP Realty, LLC, a Connecticut
limited liability company with an address of 150 Trumbull Street, 4th Floor, Hartford, CT 06103
(“Tenant”).
STATEMENT OF FACTS
A. On _______________, 20___, Landlord and Tenant entered into a Lease
Agreement for that certain [insert descriptor, i.e. piece of land, rooftop, etc.] known as
_________________, _________________ containing approximately _____ [acres of land,
square feet, etc.] (the “Lease”).
B. Pursuant to Section 1.2 of the Lease, the Landlord and Tenant agreed to execute a
memorandum setting forth the Commencement Date and Lease Term.
IT IS AGREED:
1. The Landlord and Tenant agree that the Commencement Date of the Lease is
_____________, 20___; and that the Initial Term of the Lease shall expire on _____________,
20___.
2. Except for the matters set forth herein, the Lease shall be unmodified and remain
in full force and effect.
Signed this ______ day of _____________, 20___.
Witnessed by: LANDLORD:
_____________________________
By
Print Name:
Its __________, duly authorized
Print Name:
TENANT:
VCP Realty, LLC
By
Print Name:
Its ___________, duly authorized
Print Name:
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STATE OF _________________ )
) ss.
COUNTY OF _________________ )
The foregoing instrument was acknowledged before me this ____ day of ______________,
20___ by _________________________, a member of _________________, a
_________________________, on behalf of the _________________________.
Commissioner of the Superior Court
Notary Public
My Commission Expires: ____________________
STATE OF CONNECTICUT )
) ss.
COUNTY OF _________________ )
The foregoing instrument was acknowledged before me this ____ day of ____________,
20___ by _____________, an Authorized Person of VCP Realty, LLC, a Connecticut limited
liability company, on behalf of the limited liability company.
Commissioner of the Superior Court
Notary Public
My Commission Expires: ____________________
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EXHIBIT F
LIST OF DUE DILIGENCE MATERIALS
1. Copies of all maintenance and service contracts, all service or supply contracts and any
other contracts or agreements related to the Premises, construction projects or repairs in
process;
2. Access to copies of all available licenses, permits, maps, approvals, conditions and
restrictions with respect to the Premises;
3. Details of all building, health and safety violations, if any within the last three (3) years
and a list of all pending or threatened litigation;
4. Copies of the most recent property tax bill, sewer bill, and water bill;
5. Copies of any environmental or engineering reports; and
6. Copies of any existing title insurance policies and surveys.
7. Tenant acknowledges that it has already received any documents required under this
Exhibit.
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EXHIBIT G
TITLE ENCUMBRANCES
[To be populated by Tenant after it obtains at its own expense and shares title search with
Landlord.]
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EXHIBIT H
FORM OF SUBORDINATION, NON-DISTURBANCE
AND ATTORNMENT AGREEMENT
THIS AGREEMENT made as of this _____ day of _____________, 20_, by and between
________________________, whose business address is
_____________________________________________, hereinafter referred to as "Tenant", and
___________________________, whose address is ____________________
_________________, hereinafter referred to as "Mortgagee".
Reference is made to that certain lease (hereinafter referred to as the "Lease") dated
___________, 20_, from ____________, as Landlord ("Landlord"), to Tenant, as tenant of
premises at ________________________________, more fully described therein.
Reference is further made to a certain mortgage dated ___________, 20__, now
held by Mortgagee, as heretofore amended and extended (the "Mortgage"), covering the property
demised by the Lease, the Mortgage having been recorded in ________________________.
Tenant and Mortgagee hereby agree as follows:
1. The Lease and the rights of Tenant thereunder are hereby subordinated and shall be
and remain subordinated to the Mortgage and the lien thereof, and to any and all extensions,
replacements, modifications, consolidations, spreaders and extensions thereof.
2. Mortgagee hereby consents to the Lease and agrees that:
(a) notwithstanding the Mortgage and the lien thereof, or any extension,
modification, consolidation, spreader or extension thereof, or any other restriction, lien,
encumbrance, right, title or interest now or hereafter held by Mortgagee, or any default, expiration,
termination, foreclosure, sale entry or other act or omission under, pursuant to or affecting any of
the foregoing, Tenant shall not be disturbed in peaceful enjoyment of the Premises or any rights,
privileges and benefits under the Lease terminated or canceled at any time, except in the event
Landlord shall have the right to terminate the Lease under the terms and provisions expressly set
forth therein.
(b) in the event Mortgagee should succeed to Landlord's rights, title and interest
as Landlord under the Lease, Mortgagee will perform, fulfill and observe all of Landlord's
representations, warranties and agreements set forth in the Lease while it is Landlord thereunder.
3. In the event of a foreclosure of the Mortgage, Tenant agrees to attorn to and
recognize the purchaser at the foreclosure sale as Landlord under the Lease for the balance of the
then remaining term of the Lease subject to all of the terms and provisions of the Lease.
4. The agreements contained herein shall bind and inure to the benefit of the
successors and assigns in interest of the parties hereto, and, without limitation of the foregoing
generality, the agreements of Mortgagee herein shall specifically be binding upon any purchaser
or successor of said property at a sale foreclosing said Mortgage or in lieu of such foreclosure.
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5. If the loan made by Mortgagee is secured by a deed of trust or security deed rather
than a mortgage, all reference herein to Mortgage shall be construed as referred to such other type
of security interest.
IN WITNESS WHEREOF, the parties hereof have caused the execution hereof as of the
day and year first above written.
Attest: ______________________________
By:
___________________
Vice President
Attest: MORTGAGEE:
By: