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1 ARIZONA CONTRACT Home Owner Name: tt hj Address: 3778 Bilsted WaySacramento Date: j Contractor Sunny Energy LLC Address: CA West Ray Road Suite 4 Phone #: (245) Phoenix, AZ nu@op.com Utility: k Annual kwh Usage: NO TAG Sales Group: l System Size: 5.00 kw DC Total Price: $ $15,250 SPECIFICATIONS Products Installed (the Products ) Estimated Completion Date _j Panel Description _SolarWorld SW250 Mono_ InverterSMA America3kW, 208Vac Sunny Boy Utility Interactive Inverter with display Panel Quantity _20 Finance Platform: k Utility Company _k Account # h #of Stories j Roof Type dd Other rr TAX CREDITS AND REBATES: Upon Buyers request, Seller will assist Buyer with the paperwork and application process required to obtain Buyer s federal and state tax credits and utility company rebates. Buyer understands that tax credits against buyers income tax liability. In the event that buyer does not have an income tax liability then the tax credits will not be available to buyers. Sunny Energy, may assist Purchaser to obtain financing of the Products with a third party Lender, however, Purchaser acknowledges that Sunny Energy does not provide the actual financing for the Products; and the approval of any financing, as well as the terms of any financing, for the Products are subject to the Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 1

2 approval of any such independent third party Lender, which Lender is unrelated to Sunny Energy. Sunny Energy, is not an agent of any such Lender; but simply facilitates the approval of any financing for buyer. Estimated Incentives Initial Cost Federal Tax Incentive (30% of project cost) State Tax Incentive (10% of project, max $1,000) Total Rebate / Incentives Estimated Final System Cost After All Incentives $ tt ($) yyy ($) jj ($) {#Total_Incentives} $ kk Payment Terms For Cash Project Deposit Due at Contract Signing $ $3,990 Due 3 Days Prior to Installation $ $11, THE CONTRACT DOCUMENTS 1.1. The Contractor shall fully execute the work described in the Contract Documents 1.2. The Contract Documents consist of this Agreement, conditions of the Contract (General, Supplementary and other Conditions), Drawings and Specifications, Addenda issued prior to execution of this Agreement, other documents listed within this Agreement and Modifications issued after execution of this Agreement A change in terms to this Agreement shall become valid only by means of a Modification signed by both the Owner and the Contractor. Final decision regarding acceptance and approval of a change order is at the sole discretion of the Contractor. If accepted, this may cause an increase in project cost and an extension of the construction schedule. 2. DATE OF COMMENCEMENT AND COMPLETION 2.1. Upon signing of this contract and receipt of payment 1, work will begin on drawings necessary to begin the utility application process. Within 15 business days of utility approval, permitting will be applied for and equipment will be specified, designed and ordered. Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 2

3 2.2. Contractor agrees to diligently pursue work through to completion, but shall not be responsible for delays for any of the following reasons: Failure of issuance of building permits for any length of time, funding of loans, acts of negligence or omission by Owner, Acts of God, stormy or inclement weather, lockouts, boycotts, additional work requested by Owner, additional work deemed necessary by Contractor, Inability to secure materials through regular channels, delays caused by inspection or changes ordered by the inspectors, acts of independent contractors, holidays, or other causes beyond the sellers control. CONTRACT SUM 2.3. In addition to the Contract Sum, the Owner shall pay the Contractor all applicable taxes, credit card processing fees, home owner s association fees, and applicable financing fees for the Contractor s performance of the Contract. The Contract Sum is the above posted Total Price and shall include cost of permits. Should this Contract be financed, this Contract is binding based upon approval of credit Within 10 business days after contract execution, contractor will dispatch a site evaluation team to confirm the suitability of the property to accommodate the proposed PV system. If it is determined that the property requires significant work (to include, but not limited to roof work and/or electric panel upgrades) not budgeted for, contractor will provide written estimate for additional work. Within 5 business days of receipt of estimate, homeowner may elect to: a) Accept the estimate and amend the contract to include the costs of needed upgrades. b) Cancel contract with no penalty and return of any deposits made to contractor. 3. PAYMENT TERMS 3.1. If applying for financing, this contract is valid subject to approval of said financing If homeowner elects to pay cash or secure their own financing, the Owner shall make payments to the Contractor in conformance with the following terms: Payment 1: Payment due upon signing of contract. Payment 2: Payment due 3 business days prior to installation. Customer herewith agrees to sign utility interconnect and assignment agreements as part of this Contract Progress Payments Based upon applications for payment submitted to the Owner by the Contractor, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided in Article 4.2 and elsewhere in the Contract Documents Each application for payment shall be based on the payment terms as described in Section 4.2 and shall be prepared in such form and supported by relevant data. 4. ENUMERATIONS OF CONTRACT DOCUMENTS 4.1. The parties are not bound by any oral expression or representation by any agent purporting to act for or on their behalf or by any commitment or arrangement not set forth herein The Contract Documents, except for Modifications issued after execution to include other documents listed in 5.2 through 5.4. Note only written conditions are part of Contract between Contractor and Owner 4.3. Drawings are enumerated as follows: All required electrical drawings. (Included as part of this Contract after permit(s) issued). Any change orders or addendum are to be agreed upon, in writing, by Owner and Contractor. 5. DISCLAIMERS AND ASSUMPTIONS Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 3

4 5.1. This estimate includes all manufacturer s warranties and a 2 year workmanship warranty from Contractor Only have the System repaired pursuant to the Limited Warranty and reasonably cooperate when repairs are being made; 5.3. Keep trees, bushes and hedges trimmed so that the System receives as much sunlight as it did when the Company installed it; 5.4. Keep the panels clean, pursuant to the Limited Warranty and the Guide; 5.5. Not modify your home in a way that shades the System; if you do decide to modify your home, the estimated annual production may significantly vary; 5.6. Be responsible for any conditions at your Home that affect the installation (e.g. blocking access to the roof or removing a tree that is in the way); 5.7. Not remove any markings or identification tags on the System; 5.8. Use the System primarily for personal, family or household purposes; but not to heat a swimming pool; per state law; 5.9. Not do anything, permit or allow to exist any condition or circumstance that would cause the system not to operate as intended at the Property; Notify The company if you think the system is damaged or appears unsafe; if the system is stolen; and prior to changing your power supplier; Have anyone who has ownership interest in your Home to sign this document; Return any documents we send you for signature (e.g. incentive claim forms) within seven (7) days of receiving them; and Maintain and make available, at your cost, a functioning indoor Internet connection with one available wired Ethernet port and standard AC power outlet Calculated rebates, tax credits and all other solar incentives that have been applied to defer the costs of the proposed solar system are based on current information and subject to change without notice from Contractor, the government, utility or other entity providing the incentive In certain cases, service entrance components may be dated and solar module-compatible hardware unavailable. During final system design, it may be determined that new service entrance cabinet[s]/panel[s] may be required. Contractor is not responsible for pre-existing site limitations. In this case, the client will be notified regarding all alterations, including any adjustments to contract cost. A line item projected cost may be included in this agreement. If no cost is posted then there is no provision for service panel replacement Electrical system configurations can vary widely and some may require further work or impose constraints on the possible solar configurations. Additionally, the roof may require inspection or be an unsuitable platform for the solar array as proposed. It is the goal of the installer to recognize any obstacles before the proposal is prepared and inform the client. Contractor is not responsible for pre-existing electrical or structural conditions and is not liability to correct any existing defect which is recognized during the course of the work It is important that you consult with your tax attorney and accountant. Financial data contained in this proposal is from a model recognized by the industry. However, the rebates, incentives, and tax laws continue to evolve and change. Contractor does not guarantee that you will be eligible to claim all incentives and credits available Projected energy bill reduction is based upon a recent pattern of usage as determined by Owner s utility receipt/bill statements. Any planned change in operation which may result in an increase or decrease in utility usage may include but is not limited to building expansion, a switch to more efficient lighting or A/C units, downsizing, etc. will affect percentage of bill reduced. Any and all utility bill estimates or calculations provided Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 4

5 by Contractor are based on current utility rates and are estimates only and do not constitute any type of guarantee from Contractor Should barriers such as deficient building trusses, irremovable shading trees, city permitting, etc. arise, every effort shall be made to preclude any reduction in solar system output. It may be possible to minimize any barriers by utilizing other roof areas, or installing pole or ground-mounted arrays. Please note that solar system performance is also dependent upon local, annual weather patterns Unless otherwise specified, the contract price is based upon buyer s representation that there are no preexisting conditions preventing contractor from proceeding with usual installation procedures. The roof, support structure and all existing electrical and plumbing work are believed to comply with applicable building code requirements. Any deficiencies requiring modification in existing structure or components are the responsibility of buyer. Any change in specifications or installation necessary to conform to existing or future building codes, zoning law, or regulation of inspecting by public authorities shall be considered additional work to be paid for by buyer. Any electrical or gas fees required by public authorities or utility companies are not included in the price of the Contract, unless identified and included in the specifications In event of default by Owner of any provision of this contract, Owner agrees to pay court costs, attorney fees and a 50% (fifty percent) collection fee on any outstanding balance over thirty days past due. In the event of default of any installment payment, Contractor at his discretion may declare the entire balance of the Contract immediately due and payable. Contractor retains all lien rights provided under Arizona law, additional construction cost incurred may be treated as having additional lien rights. 6. MISCELLANEOUS PROVISIONS 6.1. The Contractor shall make no payment to persons employed by the Owner or consultants for the Owner, with regard to this Agreement, without disclosure and written approval of the Owner The Contractor shall purchase and maintain general liability insurance policy in the amount of $1,000, If Contract is cancelled for any reason by Owner, after signing and engineering work has begun, there shall be a cancellation fee of Fifteen Percent (15%) of the total amount of the Contract due to Contractor. Once materials have been delivered to Owner, full payment of the Contract Amount shall be due and payable as scheduled in Payments due and unpaid under the Contract shall bear interest from the date payment is due. Owner shall pay to Contractor interest on any delinquent payment or amount due under the Contract from the due date thereof until paid, at the lesser of the maximum rate of interest allowed by law [which may be agreed in writing] or the prime lending rate charged by Chase Bank. Failure to make timely payment as required by Contractor, may extend the project schedule. The length of time required due to rescheduling and mobilization of work force, subcontractors and suppliers may increase more than the number of days lost to late payment(s). Contract schedule revision is at the sole discretion of Contractor The Owner s representative is: Self 6.6. Contractor s representative is: 6.7. Owner agrees that for the sum of One Dollar ($1.00) of this Contract amount, Contractor is leasing an area on Owner s property to be agreed upon by Owner and Contractor, for the purposes of temporary storage of Contractor s materials necessary to complete the work The Drawings are as follows: Permit drawings shall commence within 30 days following the signed date of this Contract and reservation of all associated rebates and shall be submitted to same as required. A copy of said drawings is to be included in Owners final Operations Manual, delivered upon commissioning of system by the utility company. Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 5

6 6.9. Upon Home Owner Association permission, Owner agrees to allow an 18 x 22, two sided Contractor sign as required by Arizona Registrar of Contractors to be clearly visible from the street, indicating a solar system is being installed showing AZ ROC License # Sign must be installed when permit is issued and left in place until the final utility inspection. Sign will be returned to Contractor upon final walkthrough Contractor hereby notifies Owner it will file a 20 day preliminary notice of lien per Arizona Revised Statues. Please note that this notice does not mean a lien is filed on your property. It is required for any subcontract work done on your property, only to be filed in the event of non-payment of contract Costs of upgrading residential electrical system to accommodate solar system is excluded from this Contract. Costs of unexpected trenching and concrete work are excluded from this Contract Utility rebates proposed represent the incentive level available at the time of the printing of this Contract. Due to changes made by the utility companies throughout the year, these levels are not guaranteed and subject to change without notice Should the project be disallowed or unapproved by any third party or association, all unused portion of payments shall be refunded Contractor may assign or subcontract all or any portion of the work Contractor agrees to show due care for Owners property and clean up debris adequately, but is not liable for damage that may occur to personal items during the course of the installation Owner has a right to file a written complaint with the Registrar of Contractors for an alleged violation of A.R.S (A), Mail completed complaint form to: Registrar of Contractors P.O. Box Phoenix, AZ CALL: MY AZROC ( ) 7. MEDIATION 7.1. Any Claim arising out of or related to the Contract shall, after initial decision by the Contractor or 30 days after submission of the Claim to the Contractor, be subject to mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings by either party The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association currently in effect. Request for mediation shall be filed in writing with the other party to the Contract and the American Arbitration Association. The request may be made concurrently with the filing of a demand for arbitration but, in such event, mediation shall proceed in advance of arbitration or legal or equitable proceedings, which shall be stayed pending mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the parties or court order The parties shall share the mediators fee and any filing fees equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. 8. ARBITRATION 8.1. Any Claims arising out of or related to the Contract, shall, after decision by the Contractor or 30 days after submission of the Claim to the Contractor, be subject to arbitration after a required thirty day cooling off period. Prior to arbitration, the parties shall endeavor to resolve disputes by mediation in accordance with the provisions of Section Claims not resolved by mediation shall be decided by arbitration which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Arbitration Rules of the American Arbitration Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 6

7 Association currently in effect. The demand for arbitration shall be filed in writing with the other party to the Contract and with the American Arbitration Association A demand for arbitration shall be made within the time limits specified in Section 7 as applicable, and in other cases within a reasonable time after the Claim has arisen, and in no event shall it be made after the date when institution of legal or equitable proceedings based on such Claim would be barred by the applicable statute No arbitration shall include, by consolidation or joinder or in any other manner, parties other than the Owner, Contractor and other persons substantially involved in a common question of fact or law whose presence is required if complete relief is to be accorded in arbitration. No person or entity other than the Owner and Contractor shall be included as an original third party or additional third party to an arbitration whose interest or responsibility is insubstantial. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of a Claim not described therein or with a person or entity not named described therein. The foregoing agreement to arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by parties to the Agreement shall be specifically enforceable under applicable law in any court having jurisdiction thereof Claims and Timely Assertion of Claims. The party filing a notice of demand for arbitration must assert in the demand all Claims then known to that party on which arbitration is permitted to be demanded Judgment on Final Award. The award rendered by the arbitrator or arbitrators shall be final, and the judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. This Agreement is entered into as of the day and year first written above and is executed in at least two original copies, of which one is to be delivered to the Contractor and the other to the Owner. {#docusign_owner} Owner Date {#docusign_coowner} Owner Date {#docusign_installer } Contractor Sunny Energy LLC Date Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 7

8 EXHIBIT 1 (CUSTOMER COPY) NOTICE OF CANCELLATION STATUTORILY-REQUIRED LANGUAGE Notice of Cancellation Date of Transaction: The date you signed the Agreement. You may CANCEL this transaction, without any penalty or obligation, within THREE BUSINESS DAYS from the above date. If you cancel, any property traded in, any payments made by you under the contract or sale and any negotiable instrument executed by you will be returned within TEN DAYS following receipt by Sunny Energy LLC of your cancellation notice, and any security interest arising out of the transaction will be canceled. If you cancel, you must make available to the seller Sunny Energy LLC at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of Sunny Energy LLC regarding the return shipment of the goods at Sunny Energy LLC s expense and risk. If you do make the goods available to Sunny Energy and the Sunny Energy LLC does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the Sunny Energy LLC, or if you agree to return the goods to the Sunny Energy LLC and fail to do so, then you remain liable for performance of all obligations under the contract. To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to Sunny Energy LLC, Document Receiving, 2420 West 1 st Street, Tempe, AZ NOT LATER THAN MIDNIGHT of the date that is THREE BUSINESS DAYS from the date you signed the Agreement. I hereby cancel this transaction on [Date]. Customer s Signature: Customer s Signature: Initials {#initial_owner} Sunny Energy LLC, 4939 West Ray Rd., Suite 4, Phoenix, AZ Page 8