The document discusses Property Assessed Clean Energy (PACE) financing from Figtree Energy Resource Company, which provides upfront financing for commercial property owners to implement energy efficiency, renewable energy, and water conservation upgrades with no minimum credit score or income requirements needed. PACE financing is assessed on the property's tax bill and payments can transfer to the next owner if the property is sold, while the upgrades save thousands in annual energy costs and help comply with new environmental regulations.

1. What will you do with
Your Reen Savings?
Introducing PACE Financing for energy upgrades
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.
“In these times of
soaring energy costs
and new environmental
regulations, it’s time to
protect your finances.”
Hundreds of Ways to Save Better than
Conventional Loans
 Heating & Air Conditioning  Solar thermal water heaters
 Boilers & Chillers  Pool equipment  No-money-down
 Lighting  Programmable thermostats  Simple qualification process
 Energy management systems  Solar photovoltaic systems  No personal guarantee
 Windows & Exterior doors  Solar reflective roofing  Lien transfers upon sale
 Occupancy sensors  Water-efficient plumbing fixtures  Fixed rate
 Electric vehicle charging stations  And many more  Longer terms
About Figtree Energy Resource Company
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.
Www.FigtreeCompany.com — 877.577.7373

2. 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.
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.
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%
Accounting Treatment
 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.
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.

3. 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.
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
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.
PACE Helps Property Owners:
 Create and Retain Jobs
 Attract New Customers
 Increase Productivity
 Increase Property Value
 Improve Tenant Retention
 Reduce Operating Expenses

4. 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 Support for Energy Aligned Lease Provisions
 Language can be inserted into typical commercial leases  US Green Building Council
 Both parties save money  Real Estate Board of New York
 20% buffer protects tenants from underperformance  Cushman & Wakefield
 Owners recover their costs and improve their properties  Ernst & Young
For more information visit: http://www.nyc.gov/html/planyc2030/downloads/pdf/energy_aligned_lease_official_packet.pdf

5. Participating Cities
And Counties
Active Figtree PACE Programs as of May 31, 2012
 County of Alameda (unincorporated areas)  Kerman
 County of Kern (unincorporated areas)  Palm Springs
 County of Lake (unincorporated areas)  Pittsburg
 Adelanto  Rancho Cordova
 Calipatria  Redlands
 Clovis  Sanger
 Dublin  South San Francisco
 Exeter  Vacaville
 Farmersville  Woodlake
 Fresno
Future Growth Goals
 County of Alameda (incorporated areas)  County of Santa Clara (incorporated areas)
 Berkeley  Cupertino
 Fremont  Milpitas
 Hayward  Palo Alto
 Oakland  San Jose
 Union City  Sunnyvale
 County of Los Angeles (selected areas)  County of Sacramento (selected areas)
 Commerce  Citrus Heights
 Industry  Elk Grove
 County of Kern (incorporated areas)  Folsom
 Bakersfield

6. Is PACE Financing
For You?
Self-Qualification Questionnaire
1. Do you own a commercial property (i.e., residential properties  Yes  No
with more than 4 units and all other properties)?
2. Is maintaining your cash reserves and/or credit capacity a  Yes  No
priority?
3. Do equity requirements make it difficult to find bank financing for  Yes  No
improvement projects?
4. Is improving cash flow an important investment criterion?  Yes  No
5. Do you value the option to transfer the outstanding balance of  Yes  No
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  Yes  No
depreciation tax benefits?
7. Are the mechanical systems (e.g. HVAC, water heating), lighting  Yes  No
systems, and/or plumbing fixtures in your building(s) over 10
years old?
8. Does your property have deferred maintenance issues?  Yes  No
9. Do you avoid investing in energy-efficiency upgrades because  Yes  No
your property is tenanted?
10. If you were to install solar panels, would you prefer to own them  Yes  No
(as compared to leasing) in order to take advantage of tax credits
and depreciation tax benefits?
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

7. 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
A copy of your property tax statement will help you complete the application.
 Supporting Documents
Listed in Application Form (e.g. Organizational Documents if not owned by an individual)
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.