A N E XAMPLE TO DISCUSS T HE F INANCIAL I MPACT OF PACE Property where the Landlord provides common area cooling and lighting Project involves a $200,000 energy efficiency retrofit Annual energy and maintenance savings of $33,000 (6.1 years simple payback) PACE funding available for up to 20 year Tenants generally have triple net leases 1

U NDERSTANDING T RIPLE N ET L EASE 2 Real estate taxes, building insurance, and common area repair and maintenance expenses are "passed through" to tenants on a pro-rata basis based on the relative size (square footage) of the area occupied by each tenant

H I L EVEL F INANCIAL I MPACT OF PACE – T RIPLE N ET L EASES 3 Self FundedPACE 20 years Investment by landlord ($200,000)$0 Decrease in energy cost for LL $33,000 Increase in real estate tax for LL $0($17,440) EBITDA impact $0 Cash flow year 1 ($200,000)$0 Cash flow year 2 thru PACE term $0 NPV of cash flow (8% discount rate) ($200,000)$0 RET recovery from tenants $0($17,440) Energy savings shared w/tenants ($33,000) Tenant annual net savings $33,000$15,560

D ETAILED F INANCIAL I MPACT OF PACE – T RIPLE N ET L EASES Prior to PACEAFTER PACE Occupant Name GLA Sq ft CAM recovery per sq ft RET recovery per sq. ft Total recovery CAM recovery per sq ft RET recovery per sq. ft Total recovery Notes RESTAURANT 15, $22, $22,316 CINEMA80, $363, $373,005Fixed CAM lease BURGER PLACE6, $35, $35,375 RESTAURANT 23, $22, $21,933 ELECTRONIC STORE6, $20, $21,173Single Net lease CHURCH UNIVERSITY2, $-0.00 $-Gross lease RETAILER 13, $20, $20,120 RETAILER 22, $16, $16,022 RETAILER 31, $8, $8,712 RETAILER 41, $12, $12,014 RETAURANT 36, $29, $29,106 BIG BOX 112, $-0.00 $-Gross lease RETAILER 55, $20, $20,3533% max escalation Recovery $571,102 Recovery $580,129 Savings $3,293 Total $583,422