Addendum #1 to Lease Agreement between Malone Route 2 Waterbury Properties, LLC and SolarCommunities, Inc., dated July 19, 2016

This ADDENDUM #1 to Lease Agreement (this “Lease”) is by and between MALONE RTE 2 WATERBURY PROPERTIES, LLC, a Vermont limited liability company with a place of business in Montpelier, Vermont (the “Landlord”) and SOLAR COMMUNITIES, INC. dba SUNCOMMON, a Vermont benefit corporation and certified B corporation with a place of business in Waterbury, Vermont (the “Tenant”).  Landlord and Tenant are sometimes collectively referred to herein as the “Parties” and individually referred to herein as a “Party”.

1.          Landlord and Tenant entered into a Lease Agreement on October 19, 2015 (the “Original Lease Agreement”) in which Tenant and Landlord agreed that Tenant would lease and occupy 8,640 +/- square feet of office space in a new 14,000 +/- square foot commercial building which Landlord constructed and owns in Waterbury, Vermont (“Landlord’s Building”).

2.          Landlord and Tenant now wish to enter into an Addendum #1 to the original Lease Agreement in which Tenant agrees to lease from Landlord, and Landlord agrees to lease to Tenant, the remaining 5,850 +/- square feet of Landlord’s Building for use by Tenant as warehouse space.

In consideration of the promises and the mutual covenants and agreements set forth in the original Lease Agreement, and in reliance on the representations and warranties contained therein and herin, the parties hereby agree as follows:

Lease of Additional Premises.  Landlord hereby leases and rents to Tenant, and Tenant hereby takes from Landlord, the remaining portion of Landlord’s Building containing 5,850 +/- square feet, for use by Tenant as warehouse space (the “Warehouse Space”).  Landlord and Tenant shall be bound by the same terms, conditions, rights, obligations and covenants as in the original Lease Agreement, with the following modifications applicable only to the new Warehouse Space unless otherwise stated:

Fit up of Warehouse Space:  Landlord shall deliver the Warehouse Space to Tenant substantially in conformance with the designs and specifications agreed to by the parties, and attached herein as Exhibit A.  Landlord shall use its best efforts to cause the required certificates of occupancy from the Town of Waterbury and/or the State of Vermont Department of Labor & Industry for Warehouse Space (if applicable) to be issued no later than 60 days from the execution date of this Addendum #1 to Lease Agreement, subject to (i) delay in receipt of permits for the requested changes from the responsible local and state authorities, (ii) delay caused by Tenant or (iii) force majeure including extreme winter weather related delays in construction.

Annual Base Rent:  The cost of the fit up of the Warehouse Space shall be initially paid for by the Landlord.  The Tenant shall pay to the Landlord, without offset, set-off or deduction for any reason other than as provided for in Section 1A of the original Lease Agreement, Annual Base Rent for the Warehouse Space during the Term, in an amount equal to $13.40 per square foot or $78,390 per year.  The Annual Base Rent will be paid in equal monthly installments beginning on the Commencement Date, The Annual Base Rent shall increase by 3% per annum, starting on the first anniversary of the Rent Commencement Date.

Term of Lease.  (a)  The Warehouse Space is hereby leased to Tenant, subject to all of the terms and conditions contained in the original Lease Agreement and this Addendum #1, for a term of ten (10) +/-years (the “Term”) which shall commence on the “Commencement Date” which is defined as ten (10) days following the later of the following:  the issuance by the Town of Waterbury, Vermont of certificate(s) of occupancy for the Warehouse Space (if applicable) under (i) permits issued by the Town of Waterbury under its development review/planning and zoning laws and (ii) permits issued by the Vermont Department of Public Safety Division of Fire Safety, and shall end at midnight on the day preceding the tenth (10th) anniversary of the Commencement Date of the Leased Premises (office space) in the Original Lease Agreement.  The parties shall execute a Rent Commencement Agreement in the form of Exhibit “B” memorializing the Commencement Date and the Rent Commencement Date.  The Commencement Date shall not extend beyond September 1, 2016 unless agreed to by Tenant.  If the Commencement Date has not occurred by September 1, 2016, unless Landlord is delayed in performance by (i) delays caused by Tenant or (ii) force majeure, as defined in the Original Lease Agreement and subject to the provisions of Section 33 of the Original Lease Agreement (together, clauses (i) and (ii) being referred to as the “Permitted Delays”), Landlord shall reduce the initial monthly rent payments by an equivalent of one day’s rent for each one day delay in the Commencement Date beyond September 1, 2016. If the Commencement Date has not occurred by September 1, 2016, Tenant may, at its sole option, either elect to proceed subject to Landlord’s obligation to make such penalty payments until the Commencement Date occurs, or terminate this Lease.

Use of Premises.  Tenant shall use and occupy the Warehouse Space for Tenant’s business which includes receipt, storage and distribution of equipment and materials, and light manufacturing and assembly, and for no other purpose without the Landlord’s consent, which consent shall not be unreasonably withheld, conditioned or delayed.

Security Deposit. Tenant shall pay Landlord a security deposit (the “Security Deposit”) on or before the Commencement Date in an amount equal to one month’s rent in Year 1 of the Term (1/12 of the Annual Base Rent in Year 1).  The Security Deposit shall be retained by Landlord in a non-interest bearing account.  Except as otherwise provided herein, Landlord shall refund the Security Deposit to Tenant within fifteen (15) days after the termination of this Lease, less any amounts reasonably required to repair or restore the Premises to the condition that existed on the Commencement Date, reasonable wear and tear excepted, or to pay or satisfy any outstanding terms or requirements of this Lease, including Tenant’s obligation to pay all Minimum Rent and Additional Rent due hereunder.

Common Area Charges.  Section 6: Common Area Charges of the Original Lease Agreement shall be replaced with the following:  Tenant shall pay, as Additional Rent, 100% of the common area maintenance charges for Landlord’s Building (“CAM”), including both the original Leased Premises and the Warehouse Space. CAM includes all municipal charges and taxes assessed against the real estate upon which the Premises are located (including municipal and state-wide property tax assessments), insurance premiums for all insurance carried by the Landlord with respect to the real estate and Landlord’s Building, all common utility costs such as costs for lighting, electricity and other utility expenses charged to Landlord and not separately metered to Tenant, all common and routine maintenance costs, including routine maintenance and repairs of common areas, maintenance and repairs to the building within which the Premises are located, and routine maintenance and repairs to the infrastructure serving the Premises (but not including maintenance and repairs which are Tenant’s individual responsibility under the terms of this Lease), and all other costs reasonably incurred by the Landlord in operating Landlord’s Building and the Property.  Tenant shall be responsible for and shall pay for routine maintenance of and snow and ice removal from the parking lot and walkways, rubbish removal for the building, landscaping and lawn maintenance.  CAM shall exclude costs of a capital nature, including capital improvements, capital repairs, capital equipment, and capital tools, as determined under generally accepted accounting principles consistently applied (together, “Capital Repairs”), except that Landlord may include as CAM the annual amortization over its useful life with a reasonable salvage value on a straight-line basis of the costs of any equipment or capital improvements made by Landlord after the Building was fully assessed as a completed and occupied unit and the Lease signed, as a labor-saving measure or to accomplish other savings in operating, repairing, managing, or maintaining the Property, but only to the extent of the savings.  For the convenience of the Landlord, CAM shall be paid in monthly installments due and payable at the time of the payment of Minimum Rent.  Landlord shall determine a reasonable estimate of the CAM and shall advise Tenant of the estimated amount of CAM and Tenant’s pro rata share of CAM.  Not less frequently than once each year, Landlord shall compare the actual expense for CAM to the estimated expenses and shall provide Tenant with a statement indicating whether the estimated CAM was greater or less than the actual CAM together with supporting figures and, upon Tenant’s request, documentation.  To the extent the actual CAM was less than the estimated CAM, Landlord will credit the excess against future CAM payments due from Tenant, or if in the last year of the Lease Term, Landlord shall refund such excess to Tenant within twenty (20) days of the date of the statement.  To the extent actual CAM exceeds the estimated CAM, Tenant shall pay the difference to Landlord within twenty (20) days of the date the statement is delivered to Tenant.  Landlord will preserve the records of the actual CAM for inspection by Tenant for two (2) years from the date of the annual statement to which the receipts apply.  Landlord’s estimate of CAM for the first (1^st) year of the Lease Term is included in Exhibit “C”.

IN WITNESS WHEREOF, the parties, as evidenced by the signatures of their duly authorized agents, do hereby execute this Addendum #1 to the Lease Agreement as of the 19th day of June, 2016.

STATE OF VERMONT

COUNTY OF __________________, SS.

On this 19th day of July, 2016, personally appeared PATRICK MALONE, Duly Authorized Agent of MALONE US ROUTE 2 WATERBURY PROPERTIES, LLC, to me known to be the person who executed the foregoing instrument, and he acknowledged this instrument, by him signed, to be his free act and deed and the free act and deed of MALONE US ROUTE 2 WATERBURY PROPERTIES, LLC.

IN WITNESS WHEREOF, the parties, as evidenced by the signatures of their duly authorized agents, do hereby execute this Addendum #1 to the Lease Agreement as of the 19th day of June, 2016.

STATE OF VERMONT

COUNTY OF _________________, SS.

On this 19th day of June, 2016, personally appeared ____________________, Duly Authorized Agent of SOLAR COMMUNITIES, INC. DBA SUNCOMMON, to me known to be the person who executed the foregoing instrument, and he acknowledged this instrument, by him signed, to be his free act and deed and the free act and deed of SOLAR COMMUNITIES, INC. DBA SUNCOMMON.

2.          The monthly payment of Annual Base Rent for the Warehouse Space during the initial ten (10) year Term with equal monthly payments over a term of 120 months is _______ and __/100 Dollars ($_________).