Document:

Purchase Contract, dated Novemeber 16, 2004

 Exhibit 10.6 
 *** Indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission. A complete copy of this agreement has been filed separately with the Securities and Exchange Commission.

 Purchase Contract 
 Request for
Proposals #SL04100009 
 This Agreement is made and entered into as of the Effective Date by and between Comverge, Inc(Contractor) and the City of Austin, a
Texas home-rule municipal corporation, acting by and through its municipally owned electric utility, dba Austin Energy (City). 
 Capitalized terms used but not defined herein have the meanings given them in the Agreement. 
 This Agreement is
composed of the following elements: 
  

	1.	From City’s Request for Proposals #SL04100009: 

  

	 	1.1.	Section 0100, Standard Purchase Definitions and Abbreviations 

  

	 	1.2.	Section 0300, Standard Purchase Terms and Conditions 

  

	 	1.3.	Section 0400, Supplemental Purchase Terms and Conditions 

  

	 	1.4.	Section 0800, Non-Discrimination Certification 

  

	 	1.5.	Section 090ONG MBE/MBE No Goals Form 

  

	2.	This Agreement Summary (Summary), including: 

  

	 	3.1	Revised Section 0500 

  

	 	3.2	Revised Section 0600 

 To the extent of any conflict between the
terms of this Summary and any of the documents listed in Paragraph 1 or Paragraph 2 above, this Summary shall control. To the extent of any conflict between the terms of the documents listed in Paragraph 1 and Paragraph 2, the documents listed in
Paragraph 1 shall control. 
 Executed as of the Effective Date. 
  

			
	City	  	Contractor
		
	 /s/ Carole M. Martindale
	  	 /s/ Thomas W. Wren

	 Carole M. Martindale
 Purchasing Manager
 City of Austin, Austin Energy
	  	 T. Wayne Wren
 Executive V.P.
 Comverge, Inc.

		
	 11-16-04
 Date
	  	 11.9.2004
 Date

 CITY OF AUSTIN, TEXAS 
 Purchasing Office 
 INVITATION FOR BID (IFB) 
 Offer and Award Sheet 
  

			
		
	SOLICITATION NO: SL04100009	 	 COMMODITY/SERVICE DESCRIPTION: Load
             Management Programmable Thermostats

		
	DATE ISSUED: N/A Sole Source	 	PRE-BID CONFERENCE TIME AND DATE: N/A
		
	REQUISITION NO.: RX 110OTC01009	 	LOCATION:N/A
		
	FOR CONTRACTUAL ISSUES CONTACT:	 	BID DUE PRIOR TO: N/A
		
	     
                                        
                            
 Sandy Calles, Buyer (512) 322-6487
	 	COMPLIANCE PLAN DUE PRIOR TO: N/A
		
	 FOR TECHNICAL ISSUES CONTACT:
 Steve Saenz
(512) 974-2120
	 	BID OPENING TIME AND DATE: N/A
		
		 	 LOCATION: 206 E. 9TH STREET, TWO COMMODORE PLAZA SUITE 15.120, AUSTIN, TEXAS 78701

 It is the policy of the City of Austin to involve certified Minority Owned Business Enterprises (MBEs) and
Woman Owned Business Enterprises (WBEs) in City contracting. MBE and WBE goals for this solicitation are contained in Section 0900. 
 All
Contractors and Subcontractors must be registered to do business with the City prior to award of a contract. Prime Contractors are responsible for ensuring that their Subcontractors are registered. Registration can be done through the City’s
on-line vendor registration system. Log onto 
 https.//waller.ci.austin.tx.us/austin/main.cfm?type=regn and follow the directions.

  

	
	**** SUBMIT 1 ORIGINAL AND 1 SIGNED COPY OF ALL REQUIRED DOCUMENTS****
	SOLICITATION TO:

  

			
	 /s/ Frank A. Magnotti
	  	 /s/ Frank A. Magnotti, President Global Sales and Marketing

	Signature of Person Authorized to Sign Bid	  	Signer’s Name and Title: (please print or type)
	FEDERAL TAX ID NO. 22-3543611	  	Fax No. (973) 884-3503
	Phone No. (973) 884-5970	  	Date: October 1, 2004
	Email Address fmagnotti@comverge.com	  	

 AWARD DOCUMENT 
 (This section for City of Austin only) 
  

					
	Date of Award:	 		 	 Contract No.:
  

	The above bid is accepted as to:	 		 	Dollar Value:
			
		 	By:	 	  

		 		 	PURCHASING OFFICE FOR CITY MANAGER

  

					
	Offer and Award Sheet	 	1	 	Revised 12/09/03

 Table of Contents 
  

					
	SECTION NO.	 	 TITLE
	  	PAGES
	0100, 0200, 0300	 	See http://www.ci.austintx.us/purchase/standard,htm *	  	*
			
	0400	 	SUPPLEMENTAL PURCHASE PROVISIONS	  	3
			
	0500	 	SCOPE OF WORK / SPECIFICATION	  	14
			
	0600	 	PRICE SHEET	  	1
			
	0800	 	NON-DISCRIMINATION CERTIFICATION	  	1
			
	0900	 	M/WBE PROGRAM PACKAGE (with Availability List and Compliance Pan or No Goals Form)	  	1

 All other Sections may be viewed at: http://waller.ci.austin.tx.us/purchase/go get ads.cfm 
  

					
	 RETURN FOLLOWING DOCUMENTS WITH BID**

			
	 •
	    	 Cover Page
	    	 Offer and Award Sheet (IFB)

			
	 •
	    	 Section 0600,
	    	 Price Sheet(s)

			
	 •
	    	 Section 0800,
	    	 Non-Discrimination Certification (HRC 0001)

			
	 •
	    	 Section 0900,
	    	 MBE/WBE Procurement Program Package (IFB), or no Goals Form

	**	See also Section 0200, Solicitation Instructions, Section 0400, Supplemental Purchase Provisions, and Section 0500, Scope of Work/Specification, for additional
documents that must be submitted with the bid. 

 NOTES: 
 The bidder agrees, if this bid is accepted within                  calendar days (90 days unless a different period is inserted)
after date of opening, to fully comply in strict accordance with the solicitation, specifications and provisions attached thereto for the amounts shown on the accompanying bid. 
  

	*	INCORPORATION OF DOCUMENTS. As of March 22, 2000, three (3) Sections of the solicitation documents have been made available via the Internet. These three sections:
Section 0100, Standard Purchase Definitions; Section 0200, Standard Solicitation Instructions; and Section 0300, Standard Purchase Terms and Conditions are hereby incorporated into this solicitation by reference, with the same force and
effect as if they were incorporated in full text. The full text versions of these Sections are available, on the Internet at the following online address: http://www.cf.austin.tx.us/purchase/standard.htm. Please select the appropriate set of documents for the
type solicitation - i.e. Invitation for Bid (IFB), Request for Proposal (RFP), or Request for Quotations (RFQ). 

 If you do not have
access to the Internet, you may obtain a copy of these Sections from the City of Austin Purchasing Office at the below address. Please have the solicitation number available so that the staff can select the proper documents. These documents can be
mailed, expressed mailed or faxed to you. 
 When sending a sealed Bid and/or Compliance Plan, use the proper address for
the type of service desired, as 

	shown	below. 

  

			
	P.O. Address for US Mail	  	Street Address for Hand Delivery or Courier Service
	City of Austin	  	City of Austin
	Purchasing Office	  	Purchasing Office
	P.O. Box 1088	  	Two Commodore Plaza
	Austin, Texas 78767-8845	  	206 E. 9th St. 15th floor, Suite 15.120
		  	Austin, Texas 78701
		  	Reception Phone: 512 974-2500

 Notes: Bids (including Compliance Plans) that are not submitted in a sealed envelope or
container will not be considered. 
    Unless authorized in the solicitation, telegraphic or facsimile Bids will not be
accepted. 
  

					
	Offer and Award Sheet	 	2	 	Revised 12/09/03

 CITY OF AUSTIN 
 PURCHASING OFFICE 
 SUPPLEMENTAL PURCHASE PROVISIONS SL04100009 
 The following Supplemental Purchasing Provisions apply to this solicitation: 
  

	1.	EXPLANATIONS OR CLARIFICATIONS (reference paragraph 5 in Section 0200) 

 All requests for explanations or clarifications must be submitted in writing to the Purchasing Office. 
  

	2.	INSURANCE (reference paragraph 32 in Section 0300). 

 A. The insurance certificate shall be mailed to the following address: 
 City of Austin Purchasing Office

 Attn: Sandy Calles SL04100009 
 P. O. Box 1088 
 Austin. Texas 78767 
  

	3.	TERM OF CONTRACT 

  

	 	A.	The Contract shall be in effect for a period of twelve (12) months and may be extended thereafter for up to three (3) additional twelve (12) periods, subject to the approval of the
Contractor and the City Manager or his designee. 

  

	 	B.	Upon expiration of the initial term or period of extension, the Contractor agrees to hold over under the terms and conditions of this agreement for such a period of time as is
reasonably necessary to re-solicit and/or complete the project (not to exceed 120 days unless mutually agreed on in writing). 

  

	4.	QUANTITIES 

 The quantities listed herein are
estimates for the period of the Contract. The City reserves the right to purchase more or less of these quantities as may be required during the Contract term. Quantities will be as needed and specified by the City for each order. Unless specified
in the solicitation, there are no minimum order quantities. 
  

	5.	INVOICES (reference paragraph 12 in Section 0300) 

 Invoices shall contain a non-duplicated invoice number and the information required in Section 0300, paragraph 12, entitled “Invoices.” Invoices received without all required information cannot be processed and will be returned to
the vendor. 
 Invoices shall be mailed to the below address: 
  

			
		    	 City of Austin

	Department	    	 Austin Energy

	Attn:	    	 Steve Saenz

	Address	    	 206 E. 9th Street,
Ste. 17.102

	City, State Zip Code	    	 Austin, Texas 78701-2516

 (0400) IFB Supplemental Purchase Provisions 

 CITY OF AUSTIN 
 PURCHASING OFFICE 
 SUPPLEMENTAL PURCHASE PROVISIONS SL04100009 
  

	6.	RECYCLED PRODUCTS 

  

	 	A.	The City prefers that vendors offer products that contain recycled materials. When a recycled product is offered by the Bidder, the Bidder must state in their bid the percentage of
the product that is recycled and must include a list of the recycled materials that are contained in the product. 

  

	 	B.	The recycled content of paper products offered to the City shall be in accordance with the Federal Environmental Protection Agency’s Recycled Product Procurement Guidelines.
These guidelines are available at http://www.epa.gov/cpg/. 

  

	 	C.	Contract award for paper products will be made for recycled products unless the cost is more than 10% above the lowest price for non-recycled paper products as required in the
City’s Comprehensive Recycling Resolution. 

  

	7.	LIVING WAGES AND BENEFITS (applicable to procurements involving the use of labor) 

  

	 	A.	In order to help assure low employee turnover, quality services, and to reduce costs for health care provided to uninsured citizens, the Austin City Council is committed to ensuring
fair compensation for City employees and those persons employed elsewhere in Austin. This commitment has been supported by actions to establish a “living wage” and affordable health care protection. Currently, the minimum wage for City
employees is $9.00 per hour. This minimum wage is required for any Contractor employee assigned to this City Contract, unless Published Wage Rates are included in this solicitation. In addition, the City may stipulate higher wage rates in certain
solicitations in order to assure quality and continuity of service. 

  

	 	B.	Additionally, the City provides health insurance for its employees, and for a nominal rate, employees may obtain coverage for their family members. Contractors must provide health
insurance with optional family coverage for all Contractor employees assigned to this contract. 

  

	 	C.	The City requires Contractors bidding on this Contract to provide the following information about wages and benefits currently provided to their employees assigned to this City
Contract: 

  

									
	 Status
 Full-time (F)

Part-time (P)
	  	 Job Title
	  	 Hourly
 Wage
	  	 List type of
 Company Health
 Insurance
(e.g.
 medical, dental)
	  	 Workers’
 Compensation
 Insurance
Coverage
 (yes, no)

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

	 	i.	Proof of the health care plan shall be provided by the Contractor prior to award of a Contract. In addition, an insurance certificate for Workers’ Compensation Insurance
Coverage must be provided if required by the solicitation. 

  

	 	ii.	Upon request by the City’s Contract Manager, the Contractor shall verify salaries by providing copies of weekly payroll documents. 

 (0400) IFB Supplemental Purchase Provisions 

 CITY OF AUSTIN 
 PURCHASING OFFICE 
 SUPPLEMENTAL PURCHASE PROVISIONS SL04100009 
  

					
	8.	  	NON-SOLICITATION
			
		  	A.	    	During the term of the contract, and for a period of six (6) months following termination of the contract, the Contractor, its affiliate, or its agent shall not hire, employ, or solicit for
employment or consulting services, a City employee employed in a technical job classification in a City department that engages or uses the services of a Contractor employee.
			
		  	B.	    	 In the event that a breach of Paragraph (a) occurs the Contractor shall pay liquidated
 damages to the City in an amount equal to the greater of: (i) one (1) year of the employee’s annual compensation; or (ii) _100_ percent of the employee’s annual
compensation while employed by the City. The Contractor shall reimburse the City for any fees and expenses incurred in the enforcement of this provision.

			
		  	C.	    	During the term of the contract, and for a period of six (6) months following termination of the contract, a department that engages the services of the Contractor or uses the services of a
Contractor employee will not hire a Contractor employee while the employee is performing work under a contract with the City unless the City first obtains the Contractor’s approval.
			
		  	D.	    	 In the event that a breach of Paragraph (c) occurs, the City shall pay liquidated damages to
 the Contractor in an amount equal to the greater of: (i) one (1) year of the employee’s annual compensation or (ii) __ 100 __ percent of the employee’s annual
compensation while employed by the Contractor.

		
	9.	  	CONTRACT MANAGER
		
		  	The following person is designated as Contract Manager, and will act as the contact point between the City and the Contractor:
		
		  	Steve Saenz
		  	Two Commodore Plaza
		  	206 E. 9th Street, Ste. 17.102
		  	Austin, Texas 78701-2516

  

					
	Offer and Award Sheet	  	5	 	Revised 12/09/03

 CITY OF AUSTIN, TEXAS 
 Purchasing Office 
 Scope of Work/Specifications 
 Solicitation Number: SL04100009 
 PROGRAMMABLE LOAD CONTROL THERMOSTATS 
 Scope of Work 
  

	1.0	SCOPE: This purchase specification describes the functional requirements of Programmable Load Control Thermostats that operate via 153.5 MHz / VHF-FM, as well as ancillary
equipment needed to support and ensure the successful operation of the programmable load control thermostats. 

  

	2.0	OVERVIEW: Austin Energy, located in Austin Texas, is a Municipal owned electric utility with approximately 360,000 electric customers in its service area. Austin Energy
through its Power Partner Program, has been purchasing and installing the Comverge, Programmable Load Control Thermostats that are individually addressed by a single command via *** since September 2000 with over *** units currently in the field,
and capable of providing Austin Energy with approximately *** MW of dispatchable peak load control/reduction. 

  

	  	Austin Energy seeks to continue purchasing and installing the Comverge Programmable Load Control Thermostats. In addition to the programmable load control thermostats, this purchase
specification shall also include, radio controlled Digital Control Units (DCU) for water heaters, Remote Transmitter Controller, Remote Transmission Monitor, and Hand Held Signal Strength Device - all ancillary equipment needed to support and ensure
the successful operation of the programmable load control thermostats. 

  

	3.0	PROGRAMMABLE LOAD CONTROL THERMOSTATS 

  

	 	3.1	General Operation 

  

	  	Each programmable load control thermostat as well as radio controlled Digital Control Units (DCU) shall contain a *** VHF-FM communication module, with capabilities to be
individually addressed by a single command via *** VHF-FM over the air, to switch remote loads on and off in response to commands from the Load Management System (LMS). Vendor must list and describe all features, functionality, electronic
specifications, and installation specifications of current programmable load control thermostat products. 

	 	3.2	Thermostat Functionality 

  

	 	3.2.1	Every Programmable Load Control Thermostat shall respond to the radio messages transmitted from Austin Energy’s transmitter(s) and Portable Test Unit (PTU), whether opening or
closing it’s relays as directed. Every Programmable Load Control Thermostat shall utilize and deploy “distributed intelligence”, to provide control for up to eight hours upon the receipt of a single radio command. A smooth transition
into, out of, and between levels of control shall be insured through the use of a control algorithm, whereby each programmable load control thermostat independently selects its own start and stop times after receipt of a radio control message.
Vendor must list and describe all features, functionality, electronic specifications, and installation specifications of current programmable load control thermostat. 

  

	 	3.2.2	Single-family type programmable load control thermostats shall feature weekday and weekend programmability - of four periods per day. Commercial type programmable load control
thermostats shall feature weekday and weekend programmability - of two periods per day (Occupied and Unoccupied). All thermostats shall feature equipment “ON” indicators. Vendor must list and describe all features, functionality,
electronic specifications, and installation specification of current programmable load control thermostat. 

  

	 	3.3	New Product Lines of Programmable Load Control Thermostats 

  

	 	3.3.1	In addition to the specifications already listed in this document, all new programmable load control thermostat product line(s) currently in the development stage, as well as those
in the conceptual stage (but not currently available), must also meet the following minimum specifications: 

  

	 	•	 	Must be ISO Certified. 

  

	 	•	 	Must be rated at minimum as a Class H type thermostat. 

  

	 	•	 	Shall incorporate “Surge Protection” capabilities. 

  

	 	•	 	Shall have a DROOP range of no more than +/- 1 degree. 

  

	 	•	 	Must meet Energy Star® Specifications and bear it label. 

  

	 	•	 	Shall feature a locking keypad. 

  

	 	•	 	Shall provide Temperature Limits. 

  

					
	0500 Scope of Work	  	Page 2 of 17	  	

	 	•	 	Shall feature an Auto-Changeover option. 

  

	 	•	 	Shall feature a “change filter” reminder. 

  

	 	•	 	Shall feature a display area that is back light. 

  

	 	•	 	Shall feature a display area that measures a minimum of 60mm x 20mm. 

  

	 	•	 	Shall be Web-Enabled and programmable via the Internet. 

  

	 	•	 	Shall feature a communication device that is interchangeable/migrate-able to meet a changing communications environment. 

  

	 	•	 	Thermostat must be designed to last a minimum of 15 years. 

  

	 	•	 	All hinged components must be durable, long lasting, and designed to last a minimum of 3 years. 

  

	 	•	 	All soft or hard push buttons must also be durable, long lasting, and meet the minimum design specifications of 3 years. 

  

	 	•	 	Quick reference programming instructions must appear on the thermostat. 

  

	 	•	 	All buttons on the thermostat must clearly state their functions so as to make the thermostat “user friendly” to AE and it’s customers. 

  

	 	3.3.2	Development or Conceptual Stage of New Product Lines - Because new product lines (programmable load control thermostat) are currently being designed and developed or are in a
“Conceptual Stage”. Austin Energy reserves the right to amend this contract and it’s “Scope of Work/Specifications” whereby setting, establishing, or revising the minimum performance requirements of the new product to ensure
that performance, expectations, and reliability are met. 

  

	 	3.3.3	Internet Programming (“Web Enabled”) - Every programmable load control thermostat shall be accessible through the Internet via a secure web application software
supplied by the vendor, but hosted, operated, maintained by Austin Energy such that Austin Energy and its users of the programmable load control thermostats shall have the ability to program the thermostat. 

  

	 	3.3.4	Secure web site - Internet access shall include the following, but is not limited to: a customized customer logon screen that includes a “log-in” name and
“password” so that the following over-the-air wireless programming features and capabilities can be performed: 

  

					
	0500 Scope of Work	  	Page 3 of 17	  	

	 	3.3.4.1	Individual Programming Control (New Thermostats Only)-A location/page on the web site that allows Austin Energy to perform the various load management commands as listed in
section 3.4.6 within this document. This location/page must also allow Austin Energy and its customers to perform the following functions: 

  

	 	3.3.4.1.1	Create their own customized thermostat-programming schedule(s), or modify an existing schedule(s). Note - The web page will always start with a default setting and will not reflect
what is currently programmed in the customers’ thermostat at home. 

  

	 	3.3.4.1.2	Perform temporary set-point adjustments. 

  

	 	3.3.4.1.3	Exit “Hold” and “Run” the thermostat. 

  

	 	3.3.4.1.4	The capability to switch between cooling and heating functions or to turn off the HVAC system, along with any other normal adjustments/settings/functions that can be performed
manually. Allows Austin Energy to perform the various load management command as listed in section 3.x.x within this document. 

  

	 	3.3.4.2	Control History - A location/page on the web site that allows customers to review the control history for their programmable load control thermostat or Digital Control Units
(DCU). 

  

	 	3.3.4.3	Override - A location/page on the web site that provides the customer with the ability to temporarily “opt out” for a control/cycling event for a specified period
of time. The override period will be determined by Austin Energy. 

  

	 	3.3.4.4	Odds for Control - A location/page on the web site that allows Austin Energy to post notifications indicating the likelihood of a control/cycle event for that day or week.

  

	 	3.3.4.5	Help and Frequently Asked Questions (FAQ) - A location/page on the web site that allows for both Austin Energy and the users/customers of the programmable load control
thermostat to ask/post questions, and/or look for answers to questions posted on the web site. 

  

	 	3.3.4.6	Logo - An Austin Energy approved logo shall appear on the vendor providedihosted web site, and shall appear on each web page and/or link. 

  

					
	0500 Scope of Work	  	Page 4 of 17	  	

	 	3.4	Thermostat Installations 

  

	 	3.4.1	To ensure installation compatibility of the current as well as new programmable load control thermostat on all normal 24v heating and cooling HVAC type systems - the programmable
load control thermostat (current and new) must be able to operate, at a minimum, the following HVAC systems; 

  

	 	•	 	Conventional single stage heating and cooling (gas and/or electric) 

  

	 	•	 	Multi Stage heating and cooling (gas and/or heat pump) 

 Vendor must list and describe each model type currently offered as well as any programmable load control thermostat that might be available in the future, but not currently offered along with their features, functionality, electronic
specifications and Installation specifications. Vendor must list and describe any known HVAC system compatibility issues associated with the current programmable load control thermostat as well as new or future programmable load control thermostats.

  

	 	3.4.2	If any ancillary devices such as relays, shunts, or similar components are required (power stealing) for the vendor’s current or new programmable load control thermostat to
operate/function as stated in this purchase specification, or in the vendor’s literature/printed material, they are the vendor’s responsibility, and shall be supplied at no cost to Austin Energy. 

  

	 	3.4.3	Cold Load Pickup, a feature that disconnects load when power is restored after an outage, shall be remotely programmable to between *** and *** minutes via radio message.

  

	 	3.4.4	Memory - Important data about the unit’s operation, including the number of opera- tions, time since its memory was reset and configuration data shall be maintained in
the unit’s memory, with the ability to be displayed on the thermostat LCD ( in diagnostic mode). All information stored in the programmable load control thermostats memory must be able to be downloaded and exported into MS Excel, MS Word, or MS
Access applications. 

  

					
	0500 Scope of Work	  	Page 5 of 17	  	

	 	3.4.5	Addressing - Each programmable load control thermostat shall have at least one fixed address assigned at the factory - fixed address(s) to be specified once the contract is
awarded. There shall be *** possible fixed addresses. In addition, each programmable load control thermostat shall have the capacity for up to *** additional remotely programmable operational addresses. There shall be up to *** possible operational
addresses. 

  

	 	3.4.6	Commands - There shall be two types of commands: database commands and control commands. 

  

	 	3.4.6.1	Database Commands - Database commands will be sent to the switch from the Database Module and will always be sent by the fixed address. Database Commands are sent to
configure the programmable load control thermostats by providing it with its programmable address (up to ***) and setting the time the programmable load control thermostats will use for Cold Load Pickup. That is, that time after a power outage that
the programmable load control thermostat will delay before it restores itself to operation. The options shall be *** to *** minutes. Database commands shall be able to set a control override time for each particular programmable load control
thermostat. This command tells the programmable load control thermostats to ignore all control commands for up to *** hours. This shall cancel any load control program in progress. The programmable load control thermostats shall automatically return
itself to the program after the assigned time. 

  

	 	3.4.6.2	Control Commands - Control commands shall be sent to instruct the programmable load control thermostats on how to operate over a period of time, which is related to the
cycling type of strategy. This shall take only a single command and include the following information: 

  

	 	1.	Operational Address - Identifies which programmable load control thermostats should perform the control activities being sent. 

  

	 	2.	Function Code - Selects which programmable load control thermostats function(s) should operate. There can be up to *** functions in a programmable load control thermostat.
The output of each function shall be capable of driving a relay driver. In the standard mode, the relay attached to the driver(s) is set so that upon receipt of a message, the relay energizes and removes power from the device being controlled. If no
further message command is received, each function will timeout. 

  

					
	0500 Scope of Work	  	Page 6 of 17	  	

 *Function Codes 
  

			
	 Number
	  	 Command

	***	  	***

  

	 	  	Code Numbers *** shall provide special test functions. The counter can be read at the programmable load control thermostat with a Portable Counter Display. Number *** activate the
LED on the programmable load control thermostat ON or OFF to test radio signal propagation. When the test command is received, none of the function relays operate. 

  

	 	3.3.7	Timeout Period - Time after receipt of a command to open that a programmable load control thermostat will close to restore power. Timeout shall be *** minutes.

  

	 	3.3.8	Cycle Time - Time of one complete control cycle. Times shall be *** minutes. The cycle time shall be used in conjunction with the timeout to specify the cycle rate of a
programmable load control thermostat. For example, if a cycle time of *** minutes and a timeout of *** minutes is specified, the programmable load control thermostat will be off for *** minutes and then on for *** minutes to complete the *** minute
cycle. The cycle rate is *** minutes off out of *** minutes or *** percent. 

  

	 	3.3.9	Cycle Count - Cycle count is the number of times a programmable load control thermostat will repeat its cycle time. This will determine how long control will take place
without the receipt of a new command. For example, if the cycle time is *** minutes and the cycle count is ***, control will persist for *** minutes. Cycle counts can be specified at ***. 

  

					
	0500 Scope of Work	  	Page 7 of 17	  	

	 	3.3.10	The programmable load control thermostat must execute any and all commands sent to it whenever it “hears” any one of its addresses. 

  

	4.0	Receiver/Switch Communication 

  

	 	4.1	Austin Energy recognizes that the overall system performance is dependent on reliable communications from the Load Management System (LMS) to the RTC to the Transmitter, and finally
to the programmable load control thermostat and/or Digital Control Unit. Because of this, Austin Energy identifies the following responsibilities between Austin Energy and the vendor. 

  

	 	4.2	Austin Energy will assume responsibility for the installation only of the following components: 

  

	 	4.2.1	Transmitter(s). 

  

	 	4.2.2	Antenna(s). 

  

	 	4.2.3	Cabling. 

  

	 	4.2.4	Modems. 

  

	 	4.2.5	Telephone Lines. 

  

	 	4.2.6	Thermostats and Digital Control Units. 

  

	 	4.2.7	The maintenance associated with these responsibilities. 

  

	 	4.3	Vendor will assume complete responsibility for the following: 

  

	 	4.3.1	The complete set-up and connection of all transmitter(s). 

  

	 	4.3.2	The alignment of transmitter(s), if necessary, the complete set-up and connection of ancillary equipment such as RTC’s and RTM’s. 

  

	 	4.3.3	The installation of, or the hosting of a secure Web Site, and the web/Internet interface for AE and its customers. 

  

	 	4.4	The vendor will also ensure that the communication module contained within the programmable load control thermostats and digital control units (current and new) receive commands
from the Load Management System (LMS) and/or Web Site, and that the programmable load control thermostats as well as digital control units, current and new, respond appropriately and consistently to commands sent to them. 

 

	 	4.5	The vendor will also ensure that the communication module contained within the programmable thermostat or digital control unit (current and new) meet the sensitivity and reliability

  

					
	0500 Scope of Work	  	Page 8 of 17	  	

	 	  	requirements- If necessary, it is the vendors responsible for the re-engineering of the communication module so as to increase sensitivity, and update the firmware to ensure product
reliability. 

  

	 	4.6	Austin Energy will assume responsibility for monitoring the following: 

  

	 	4.6.1	All out bound signal/messages to the RTC(s), Transmitter(s). 

  

	 	4.6.2	All inbound messages decoded from the RTM(s). 

  

	 	4.6.3	Signals/commands sent to the programmable load control thermostat via PTU. 

  

	 	4.6.4	Signal strength with the use of Spectrum Analyzer-type equipment. 

  

	 	4.6.5	Visual confirmations of daily restore messages to the programmable load control thermostat. 

  

	 	4.7	Results of AE’s responsibilities will be communicated to the vendor as part of AE’s performance evaluation. 

  

	 	4.8	Vendor will assume responsibility and all costs associated with resolving, and implementing solutions to problems identified and reported by Austin Energy with vendor’s
product(s) that is properly installed to assure product performs to AE’s expectations, as well as functioning as stated by the vendor. 

  

	5.0	Electrical Specification — Thermostat[MSOffice1] 

  

	 	5.1	Input Voltage - based on the type of equipment selected 

  

	 	5.1.1	240V ac +1-15%, 60 Hz (Standard), or 

  

	 	5.1.2	20 - 30 VAC, 50/60 Hz, power stealing operation. 

  

	 	5.2	Power Consumption 

  

	 	  	*** to *** Amps (load per terminal), *** Amps maximum Total Load - all terminals combined. 

  

	 	5.3	Operating ‘temperature 

  

	 	  	-30°C to 60°C 

  

	 	5.4	Humidity 

  

	 	  	0% to 90%, non-condensing 

  

	 	5.5	Transient Voltage Protection 

  

	 	  	Exceeds ANSI C37-90A-1974 

  

	6.0	Watchdog - Thermostat 

  

	  	Every programmable load control thermostat (current and future) shall be furnished with a hardware watchdog circuit, which continuously monitors microprocessor performance. If the
microprocessor should malfunction, the watchdog shall automatically reinitialize the microprocessor’s program. 

  

					
	0500 Scope of Work	  	Page 9 of 17	  	

	7.0	Receiver Specification - Thermostat 

  

	 	7.1	Type 

  

	 	  	*** 

  

	 	7.2	Sensitivity 

  

	 	  	Better than *** p V per meter, at minimum 

  

	 	7.3	Frequency 

  

	 	  	153.53 MHz (to be supplied later.) 

  

	 	7.4	Frequency Stability 

  

	 	  	***% over operating temperature range 

  

	 	7.5	Image Rejection 

  

	 	  	*** dB 

  

	 	7.6	Selectivity 

  

	 	  	*** dB minimum +/-30 kHz 

  

	 	7.7	Certification 

  

	 	  	FCC 

  

	8.0	LED - Thermostat 

  

	  	One to Two LED’s, or a combination of a LED with various blinking patterns (to be determined by AE) shall be provided to indicate the following; 

  

	 	8.1	To indicate when a test code is received. In this instance, the LED shall ligbt/blink, but the output relay shall not be activated. 

  

	 	8.2	Shall light, and stay light to indicate that there is power to the thermostat. 

  

	 	8.3	To indicate when load control is pending or activated. 

  

	 	8.4	For each output relay. 

  

	 	8.5	The LED shall light/blink whenever its relay is energized. 

  

					
	0500 Scope of Work	  	Page 10 of 17	  	

	9.0	Digital Control Units (DCU) 

  

	 	9.1	Internet Access 

  

	 	9.1.2	Secure web site - Internet access shall include the following, but is not limited to: a customized customer logon screen that includes a “log-in” name and
“password” so that the following over-the-air wireless programming features and capabilities can be performed: 

  

	 	9.1.3	Control History - A location/page on the web site that allows customers to review the control history for their Digital Control Units (DCU). 

  

	 	9.1.4	Override - A location/page on the web site that provides the customer with the ability to temporarily “opt out” for a control/cycling event for a specified period
of time. The override period will be determined by Austin Energy. 

  

	 	9.1.5	Odds for Control - A location/page on the web site that allows Austin Energy to post notifications indicating the likelihood of a control/cycle event for that day or week.

  

	 	3.4.6.3	Help and Frequently Asked Questions (FAQ) - A location/page on the web site that allows for both Austin Energy and the users/customers of the DCU to ask/post questions;
and/or look for answers to questions posted on the web site. 

  

	 	9.1.7	Logo - An Austin Energy approved logo shall appear on the vendor provided/hosted web site, and shall appear on each web page and/or link. 

  

					
	0500 Scope of Work	  	Page 11 of 17	  	

	10.0	Receiver Specification - Digital Control Units (DCU) 

  

	 	10.1	Type 

  

	 	  	*** 

  

	 	10.2	Sensitivity 

  

	 	  	Better than *** pV per meter, at minimum 

  

	 	10.3	Frequency 

  

	 	  	153.53 MHz (to be supplied later.) 

  

	 	10.4	Frequency Stability 

  

	 	  	***% over operating temperature range 

  

	 	10.5	Image Rejection 

  

	 	  	*** dB 

  

	 	10.6	Selectivity 

  

	 	  	*** dB minimum +/-30 kHz 

  

	 	10.7	Certification 

  

	 	  	FCC 

  

	11.0	Electrical Specification - Digital Control Units (DCU) 

  

	 	11.1	Input Voltage - based on the type of equipment selected 

  

	 	  	240V ac +1-15%, 60 Hz (Standard) 

  

	 	11.2	Power Consumption 

  

	 	  	*** watts maximum 

  

	 	11.3	Operating Temperature 

  

	 	  	-30°C to 60°C 

  

	 	11.4	Humidity 

  

	 	  	0% to 100%, non-condensing 

  

	 	11.5	Transient Voltage Protection 

  

	 	  	Exceeds ANSI C37-90A-1974 

  

	 	11.6	Relays = for outside type load control switches 

  

	 	11.6.1	1 24V, ***-ampere relays shall be furnished for air conditioner control. 

  

	 	11.6.2	240V, ***-ampere relays shall be furnished for water heater or irrigation Pump control 

  

	11	LED - DCU 

  

	 	11.1	A test LED shall be provided to indicate when a test code is received. In this instance, the LED shall light, but the output relay shall not be activated. 

 

					
	0500 Scope of Work	  	Page 12 of 17	  	

	 	11.2	A LED shall be famished for each output relay. 

  

	 	11.3	The LED shall light whenever its relay is energized. 

  

	12	Watchdog- Digital Control Units (DCU) 

  

	  	Every digital control units (current and future) shall be furnished with a hardware watchdog circuit, which continuously monitors microprocessor performance. If the microprocessor
should malfunction, the watchdog shall automatically reinitialize the microprocessor’s program. 

  

	12.0	Enclosure 

  

	  	The programmable load control DCU enclosure shall be made of UV stabilized, high impact strength plastic. The enclosure shall be NEMA 3R rated. 

  

	  	All electronics shall be mounted in a removable door for ease of maintenance. The door shall be double hinged and shall have a dual point latching mechanism. Provisions shall be
made for securing the cover with 4 screws and a meter seal. 

  

	13.0	ANCILLARY EQUIPMENT 

  

	 	13.1	Portable Test Unit 

  

	  	The portable test unit shall be a hand-held signal generator used for installation and checkout of programmable load control thermostat. The unit will allow manual selection and
transmission of digital radio commands to test for proper operation of a programmable load control thermostat. 

  

	  	The test unit shall be crystal controlled and shall transmit at the appropriate frequency. The frequency tones shall be calibrated and preset at the factory. Digital address coding
shall be selected via incremental push-to-select programmable load control thermostat on front of the unit. There shall be a visual display of the selected address code. The transmission shall be effected by depression of a control button marked
TRANSMIT. 

  

	  	A rechargeable 9V DC battery shall supply power. Automatic power ON/OFF shall be built into the unit so that the unit draws power only while the TRANSMIT button is depressed. The
unit shall be capable of continuous operation for one (1) hour from one (1) 9V rechargeable DC battery. There shall be an LED display to indicate when the battery should be replaced. The unit shall be enclosed in a weather resistant, high
impact polystyrene case and will come standard with a padded canvas carrying case. 

  

					
	0500 Scope of Work	  	Page 13 of 17	  	

	 	13.2	Field Strength Unit (FSU) 

  

	  	The FSU shall be a testing device similar to a spectrum analyzer used to simulate the thermostat or digital control unit (current & new) and provide a read out of field
strength and frequency modulation sent from the LMS through the RTC and Transmitter system. The FSU shall utilize the same communications module and antenna as utilized in the vendor’s programmable load control thermostat and digital control
unit, current and new. 

  

	  	The FSU shall be pre-tuned to operate on AE’s VHF radio frequency and shall be powered from its internal rechargeable battery, 120 V AC charger, or cigarette lighter adapter
The FSU shall come with a 120v, 601-Iz battery charger/power supply and a cigarette plug adapter. 

  

	 	13.3	Remote Transmitter Controller (RTC) 

  

	  	Located at each transmitter, the Remote Transmitter Controller shall be a microprocessor-based device connected to the Load Management System (LMS) by (minimum 1200-baud) modem or
high speed ISDN line. The Remote Transmitter Controller receives messages from the Traffic Interface Controller, stores the messages until the proper time to transmit and then keys the transmitter and modulates the RF carrier with digitally encoded
audio signals. The RTC shall be capable of receiving and responding to a contact closure for listen-before-talk to make sure the channel is free before transmitting. The RTC shall contain watchdog circuitry to eliminate lockups caused by transients
and power surges. The RTC shall be able to operate the following transmission modes: Slot Mode, Variable Length Time Slot Mode, and Contiguous Mode which will allow for standard “DC” and “Tone” keying, Dual AFSK/FSK and
Multi-port keying. Each RTC shall be capable of controlling up to six transmitters. 

  

	 	13.4	Remote Transmission Monitor (RTM) 

  

	  	The RTM shall receive the same audio messages used to activate programmable load control thermostats and digital control units (DCU) for load control. The RTM shall be capable of
receiving outgoing messages from either a single transmitter or an entire transmitter network. The RTNI shall receive messages, decode the message and send it back to the Load Management System (LMS) for verification of the load
control/’programming message. The RTM shall contain watchdog circuitry to eliminate lockups caused by transients and power surges. The RTM shall decode AFSK and FSK protocols at the same time. 

  

					
	0500 Scope of Work	  	Page 14 of 17	  	

	 	13.5	Portable Counter Display (PCD) = (Optional) 

  

	  	The portable counter display shall be a hand-held data retrieval unit used in the field to recover historical data from an individual radio controlled programmable load control
thermostat or Digital Control Units (DCU). 

  

	  	The PCD shall retrieve the data stored internally in each programmable load control thermostat. This data shall include commands received, the number of operations performed, the
time-out interval selected, the programmable load control thermostat address, the enabled or disabled state of the cold load pick-up feature, and the elapsed time since the programmable load control thermostat memory was last reset.

  

	  	The PCD shall operate continuously for one (1) hour from one (1) rechargeable 9V DC battery. The PCD shall have an LED display to indicate when the battery should be
replaced. 

  

	  	The PCD shall be enclosed in a weather resistant, high-impact polystyrene case. 

  

	14.0	INSTALLATION AND TRAINING 

  

	 	14.1	Instruction and Maintenance Manuals 

  

	 	1.	The vendor shall supply three (3) copies of each: 

  

	 	a.	All non-proprietary software documentation. 

  

	 	b.	Testing procedures/criteria for both thermostat and communication module. 

  

	 	c.	Instruction and maintenance manuals for all vendor supplied hardware, software, and peripherals. 

  

	 	2.	Installation by the vendor shall include. 

  

	 	a.	On-site installation and interconnection of RTC, RTM, and PCD. 

  

	 	b.	Installation and boot-up of all software and software up-dates - if necessary. 

  

	 	c.	Complete checkout and test run of all hardware and software. 

  

	15.0	PRODUCT PERFORMANCE AND EXPECTATIONS 

  

	 	15.1	Vendor’s products (current and new) will work as described in vendor - Comverge, Scientific Atlanta, White Rogers, or any other product datasheets, letter, e-mails, and shall
respond correctly as well as consistently to load control signals from the LMS. 

  

	 	15.2	Vendor agrees to abide by all testing as described in this specification and in attachments. 

  

	 	15.3	Vendor will supply all shunts/relays at no charge to AE to be used on installations of current and new product lines. 

  

					
	0500 Scope of Work	  	Page 15 of 17	  	

	 	15.4	The purchases of ancillary equipment as described in this specification shall include installations and set-up; this includes all software and performing data conversions of all
information from/to AE LMS. 

  

	 	15.5	Vendor will provide AE with timely solutions - 30 working days, to solving problems encountered with the vendor’s products. 

  

	16.0	FACTORY TEST AND INSPECTION 

  

	 	16.1	Vendor shall supply AE with a test fixture along with test procedures to test its product. Vendor reserves the right to inspect the testing process at any time.

  

	 	16.2	Vendor agrees to abide by the graduated testing rate (see attachment) for all new products, and will reimburse AE for all testing fees as indicated in the attachment.

  

	 	16.3	Vendor agrees that all BMA’s will be tested at a rate of 100% and will reimburse AE for all testing fees. 

  

	 	16.4	Vendor agrees to provide AE with a complete diagnostic of failed units as to the cause of the failure within 30 days of receipt. 

  

	17.0	WARRANTY 

  

	 	17.1	In the event the vendor’s product - Honeywell Thermostats (including communication module), Comverge SuperStat SSB-206 (White Rodgers, including communication module), or
Digital Control Units should fail during the warranty period (*** months from the date of shipment), the vendor agrees to cover all costs associated with replacing the failed product. This includes any labor fees associated with removing the failed
product, a new or replacement product, reinstalling the new product, and all shipping charges for units over the ***% expected annual failure rate. 

  

	 	17.2	Warranty also applies to, and covers products that do not respond to control signals. 

  

	 	17.3	All ancillary devices/equipment as well as test equipment listed in section 13.0 shall come with a *** month warranty. 

  

	 	17.4	Software - Must operate as stated in vendor literature, be free of any viruses, and be up gradeable without losing or corruption of existing data. 

  

	 	17.5	Warranty Exclusions. 

  

	 	17.6.1	Warranty shall not apply to vendor products that exhibit evidence of abuse, misuse or damage caused by (a) Austin Energy, (b) Honeywell DMC, or (3) Austin
Energy’s customers. 

  

					
	0500 Scope of Work	  	Page 16 of 17	  	

	 	17.6.2	The warranty shall not apply to any products that are removed by reason of an Austin Energy customer’s request to withdraw from the Power Partner Program.

  

	18.	SCHEDULE 

  

	  	Vendor shall include with quotation a proposed estimated delivery schedule and a list of deliverables. Schedule should include but not be limited to: 

  

	 	1.	Project Team 

  

	 	2.	Project implementation Plan 

  

	 	3.	Project Timelines 

  

					
	0500 Scope of Work	  	Page 17 of 17	  	

 City of Austin 
 LOAD MANAGEMENT SYSTEM PRICE SHEET 
  

							
	1)	 	Remote Transmitter Controller	  	***	 	$***
		 	(Price includes set-up and connection; per Converge datasheets)	  		 	
				
	2)	 	Remote Transmission Monitor	  	***	 	$***
		 	(Price includes set-up and connection; per Converge datasheets)	  		 	
				
	3)	 	Portable Test Unit (per Comverge datasheets)	  	***	 	$***
				
	4)	 	Portable Counter Display (per Comverge datasheets)	  	***	 	$***
				
	5)	 	Hand Held Signal Strength Analyzer	  	***	 	$TBD after
		 	(This device to be approved by AE)	  		 	firm specifications are developed
				
	6)	 	Programmable Load Control Thermostat/Switches:	  		 	
				
		 	Honeywell T7512A (per Comverge datasheets)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	Honeywell T7512B (per Comverge datasheets)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control H/P Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	White Rogers T85 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	White Rogers T85 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control H/P Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	Comverge S225 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	Comverge S225 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
		 	DCU S2100/SA206	  	***	 	$***
		 	(Outside type receiver switch w/2 30A relays)	  		 	
				
	7)	 	System Support/Training	  	***	 	$***/day
		 	(includes travel, hotel, meals)	  		 	
	8)	 	Annual software maintenance	  	***	 	$***
		 	(Bug fixes, patches, and updates)	  		 	
	9)	 	Out of Warranty Thermostat	  	Any	 	$ ***
	10)	 	New devices developed by Comverge and approved by AE may be added to price sheet; cost of these devices will remain within approved budget.

 City of Austin, Texas 
 Human Rights Commission 
 NON-DISCRIMINATION CERTIFICATION (IFB) 
 TO: CITY OF AUSTIN, TEXAS 
 I hereby certify that our firm conforms to the 1992 City of Austin Code; Chapters 7-4 as reiterated below: 
 ARTICLE VII, Chapter 7-4: Discrimination in Employment by City Contractors. Sec. 7-4-2 Requirements of contractors: 
  

	B	(1)     Not to engage in any discriminatory employment practice defined in this chapter. 

  

	 	(2)	To take affirmative action to insure that applicants are employed, and that employees are treated during employment, without discrimination being practiced against them as
defined in this chapter. Such affirmative action shall include, but not be limited to, employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and
selection for training or any other terms, conditions, or privileges of employment. 

  

	 	(3)	To post in conspicuous places, available to the employees and applicants for employment, notices to be provided by the Austin Human Rights Commission setting forth the
provision of this chapter. 

  

	 	(4)	To state in all solicitations or advertisements for employees placed by or on behalf of the contractor, that all qualified applicants will receive consideration for employment
without regard to race, creed, color, religion, national origin, sex or age. 

  

	 	(5)	To obtain a written statement from any labor union or labor organization furnishing labor or service to the contractors in which such union or organization has agreed not to engage
in any discriminatory employment practices as defined in this chapter and to take affirmative action to implement the policies and provisions of this chapter. 

  

	 	(6)	To cooperate fully with the City and the Austin Human Rights Commission in connection with any investigation or conciliation effort of the Austin Human Rights Commission to ensure
that the purpose of the provisions against discriminatory employment practice is being carried out. 

  

	 	(7)	To require of all subcontractors having 15 or more employees who hold any subcontract providing for the expenditure of $2,000 or more in connection with any contract with the City
subject to the terms of this chapter that they not engage in any discriminatory employment practice as defined in this chapter. 

  

					
	Dated this 1st day of October, 2004	 	Vendor	 	Comverse Inc.
			
		 	Signature	 	 /s/ FRANK A. MAGNOTTI

		 	Title	 	President Global Sales and Marketing

  

					
	 0800 (IFB) Non-Discrimination Certification
                     (HRC0-0001)
	  	1	 	Rev. 05/10/00

 MINORITY - AND WOMEN-OWNED BUSINESS ENTERPRISE (M/WBE) 
 PROCUREMENT PROGRAM (IFB) 
  

	
	    SOLICITATION NUMBER: SL04100009
	
	    PROJECT NAME: Load Management Programmable Thermostates
	
	    DATE ISSUED: N/A - Sole Source

 The 1992 City Code, Chapter5-7, as amended, establishes a Minority- and Women-Owned Business Enterprise (M/WBE)
Procurement Program. The aim of this program is to promote M/WBE participation in all areas of the City’s procurement, through its prime contract awards and subcontracts, and to afford M/WBEs an equal opportunity to compete for all City
contracts. In particular, this program encourages contractors to provide opportunities to certified M/WBEs for subcontractors or related contracts. A “Subcontractor” is defined by the Ordinance and for the purposes of this form as any
person or business enterprise providing goods, labor, or services to a contractor if such goods, labor, or services are procured or used in fulfillment of the contractor’s obligations arising from a contract with the City. In accordance
with the 1992 City Code, Chapter 5-7, as amended, goals for M/WBE participation differ from contract to contract, based on the type of contract, the availability of M/WBEs to perform the functions of the contract, and other factors. 

The City of Austin has determined that no goals will be established for this project. 
 Even though no goals have been established, the bidder is required to comply with the City’s M/WBE Procurement Program if areas of subcontracting are identified. If certain services are needed to
perform the contract and the bidder does not perform those services with its own workforce or if certain supplies or materials are required and the bidder does not have those supplies or materials in its inventory, the bidder shall:

  

	 	A.	contact the Department of Small and Minority Business Resources (SMBR), 4100 Ed Bluestein Blvd. Austin Texas 78721 ((512) 974-7600) to obtain a list of available MBE/WBE firms to
perform the services or provide the supplies or materials. Make a good faith effort to use MBE/WBEs to provide the needed services, supplies or materials.

  

	 	B.	obtain an M/WBE Procurement Program Package from the buyer in the Purchasing Office, complete the Compliance Plan to document all subcontracting activity, and return it to the Buyer
in the Purchasing Office. 

  

	 	C.	report all initial subcontract awards to the Contract Manager for this project with ten (10) calendar days after execution of an Agreement with a subcontractor.

  

					
	I understand and agree that this MBE/WBE form shall become a part of my contract with the City of Austin.
			
	 Frank A Magnotti, President Global Sales and Marketing
	 		 	
	 Name and Title of Authorized Representative (Print or type)
	 		 	
			
	 /s/ FRANK A. MAGNOTTI
	 		 	 10/1/04

	Signature	 		 	Date

  

					
	 0900NG (IFB) MBE/WBE No Goals Form
 (HRC0-0001)
	  	1	 	Revised 08/14/00

 

 
 Amendment No. 1 
 to 
 Contract No. CO 50031 
 for 
 Programmable Thermostats 
 between 
 Comverge 
 and the 
 City of Austin 
  

	1.0	The term of the above referenced contract is hereby changed as follows: 

  

			
	Change From:	  	Change To:
		
	Basic Term: Nov. 16, 2004 - Nov. 15, 2005	  	Nov 16, 2004 - Sept. 30, 2005
	Option 1 : Nov. 16, 2005 - Nov. 15, 2006	  	Oct, 1, 2005 - Sept 30, 2006
	Option 2: Nov. 16, 2006 - Nov. 15, 2007	  	Oct 1, 2006 - Sept 30, 2007
	Option 3 : Nov. 16, 2007 - Nov. 15, 2008	  	Oct 1, 2007 - Sept 30, 2008

  

	2.0	The City hereby exercises the first extension option for the above referenced contract. Effective October 1, 2005, the term for the extension option will be October 1,
2005 to September 30, 2006 and there are two remaining options. 

  

	3.0	The total Contract amount is increased by $*** for the extension option period. The total Contract authorization is recapped below: 

  

					
	 Term
	  	 Contract Amount for the term
	  	 Total Contract Amount

	Basic Term: Nov 16, 2004 - Set 30, 2005	  	$***	  	$***
	 Amendment No. 1: Option 1
 10/01/05 -
09/30/06
	  	$***	  	$***

  

	4.0	MBE/WBE goals do not apply to this contract. 

  

	5.0	All other terms and, conditions remain the same. 

 BY THE Signatures
affixed below, Amendment No. 1 is hereby incorporated into and made a part of the above-referenced contract. 
 Signature: 
  

							
	 /s/ Wayne Wren
	 		 	 /s/ Bea Washington for

	 Printed Name: Wayne Wren
 Authorized
Representative
	 		 	 Sandy Calles, Senior Buyer
 City of Austin
 Purchasing Office

			
	 Comverge Inc.
 4497 Park Dr.
 Norcross, GA. 30093-2908
	 		 	
			
	 10.12.05
	 		 	 10/12/05

	Date	 		 	Date
			
	Reviewed and Approved	 		 	
				
	Signature:	 	 /s/ Urcha Dunbar-Crespo
	 		 	
			
	 Urcha Dunbar - Crespo
	 		 	 10/13/05

	Printed Name:	 		 	DateLoan and Security Agreement, dated April 7, 2003

 Exhibit 10.7 
 Loan and Security Agreement 
 This LOAN AND SECURITY AGREEMENT dated April 7, 2003 between SILICON VALLEY
BANK (“Bank”), whose address is 3003 Tasman Drive, Santa Clara, California 95054, with a loan production office located at 9020 Capital of Texas Hwy. North, Building 1, Suite 350, Austin, Texas 78759, and COMVERGE, INC., a Delaware
corporation (formerly known as Comverge, Technologies, Inc.) (“Borrower”), whose address is 4497 Park Drive, Norcross, Georgia 30093, provides the terms on which Bank will lend to Borrower and Borrower will repay Bank. The parties hereto
agree as follows: 
 1. ACCOUNTING AND OTHER TERMS. 
 Accounting terms not defined in this Agreement will be construed following GAAP. Calculations and determinations must be made following GAAP. Except where otherwise indicated herein, the term “financial
statements” includes the notes and schedules. The terms “including” and “includes” always mean “including (or includes) without limitation,” in this or any Loan Document. 
 2. LOAN AND TERMS OF PAYMENT. 
 2.1. Promise to Pay.

 Borrower promises to pay Bank the unpaid principal amount of all Credit Extensions and interest on the unpaid principal amount of the
Credit Extensions in accordance with the terms of the Loan Documents. 
 2.1.1. Credit Extensions. 
 (a) Bank will make Revolving Advances and other Credit Extensions in accordance with the terms and conditions as set forth on, and not exceeding, the
applicable Credit Limit shown on Schedule 1 to this Agreement (the “Schedule”). Amounts borrowed under this Section relating to Revolving Advances only may be repaid and reborrowed during the term of this Agreement. 
 (b) To obtain a Revolving Advance, Borrower must notify Bank by facsimile or telephone by 12:00 p.m. Pacific time on the Business Day such a Revolving
Advance is to be made. Borrower must promptly confirm the notification by delivering to Bank the Payment/Advance Form attached as Exhibit B. Bank will credit Revolving Advances to Borrower’s deposit account. Bank may make Revolving Advances
under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Revolving Advances are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a
person whom Bank reasonably believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to such reliance. 
 (c) The credit facilities hereunder terminate on the applicable Maturity Date, and on each applicable Maturity Date all related Credit Extensions and all Obligations arising in connection therewith, are then fully due
and payable. 
 2.1.2. Letters of Credit Sublimit. 
 Bank will issue or has issued letters of credit (the “Letters of Credit”) for Borrower’s account not exceeding the amount shown on the Schedule. Borrower shall secure all of Borrower’s
reimbursement obligations relating to all outstanding Letters of Credit by unencumbered cash on terms acceptable to Bank on or before the Maturity Date with respect to Letters of Credit that expire after the Maturity Date relating to Revolving
Advances if the term of this Agreement is not extended by Bank or Borrower shall so secure the Letters of Credit if upon the effectiveness of the Asset Based Terms, any such Letters of 

 Credit could not then be issued due to a lack of availability under the then applicable borrowing formulas. Borrower
agrees to execute Bank’s standard Letter of Credit application documentation in connection with the Letters of Credit as Bank may reasonably request. 
 2.2. Overadvances. 
 If Borrower’s Obligations under Section 2.1.1 or 2.1.2 exceed the applicable lending
limitations relating thereto, Borrower must immediately pay Bank any such excess. 
 2.3. Interest Rate, Payments. 
 (a) Interest Rate. Revolving Advances and the Term Loan accrue interest on the outstanding principal balance at the applicable interest rates set forth in
the Schedule. After an Event of Default, Obligations accrue interest at 5 percent above the rate effective immediately before the Event of Default. The interest rate increases or decreases when the Prime Rate changes. Interest is computed on a 360
day year for the actual number of days elapsed. 
 (b) Payments. Interest on the Revolving Advances and the Term Loan is due and payable the
first (1st) day of each month. Bank may debit any of Borrower’s deposit accounts maintained with Bank,
including the Accounts shown on Schedule 2, for principal and interest payments owing or any amounts Borrower owes Bank. Bank will promptly notify Borrower when it debits Borrower’s accounts. These debits are not a set-off. Payments received
after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest accrue.

 2.4. Fees. 
 Borrower will pay:

 (a) Facility Fee; Other Fees. A fully earned, non refundable Facility Fee and other fees in the amounts and payable as shown on the
Schedule; and 
 (b) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and reasonable expenses) incurred through
and after the date of this Agreement, are payable when due. 
 3. CONDITIONS OF LOANS. 
 3.1. Conditions Precedent to Initial Credit Extension. 
 Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that it receive the agreements, documents, fees and other evidence it requires including, without limitation, the following: 
 (a) this Agreement; 
 (b) Schedule to this
Agreement; 
 (c) an Intellectual Property security agreement in form acceptable to Bank; 
 (d) a certificate of the Secretary of Borrower with respect to the incumbency and resolutions authorizing the execution and delivery of the Loan
Documents; 
  

 2 

 (e) evidence acceptable to Bank of the consummation of the Series A Transaction, which includes the sale
and purchase of Series A Preferred Stock of the Borrower and Series A-1 Preferred Stock of the Borrower; 
 (f) evidence acceptable to Bank
of the conversion of intercompany debt to equity in form acceptable to Bank; 
 (g) securities account control agreement relating to Bank;

 (h) pledge agreement by DSSI, in form acceptable to Bank, relating to a cash pledge of $1,500,000 as collateral for the Obligations
relating to the Term Loan; 
 (i) a certificate of the Secretary of DSSI with respect to the incumbency and resolutions authorizing the
execution and delivery of the Pledge Agreement; 
 (j) guaranty by the domestic subsidiaries of Borrower, in form acceptable to Bank;

 (k) security agreement by the domestic subsidiaries of Borrower, in form acceptable to Bank; 
 (l) a certificate of the Secretary of each domestic subsidiary of Borrower with respect to the incumbency and resolutions; 
 (m) landlord waiver agreements regarding the leased premises of Borrower in Georgia, in form acceptable to Bank; 
 (n) bailee letters regarding third party locations of Collateral of Borrower, in form acceptable to Bank; 
 (o) deposit account control agreements with all third party deposit institutions of Borrower, in form acceptable to Bank, other than for Fleet Bank
(provided that Borrower transfers the funds in such accounts to Bank within a commercially reasonable amount of time after the date hereof); 
 (p) evidence of insurance and loss payable endorsement in form acceptable to Bank and all in compliance with the terms and conditions of this Agreement; 
 (q) payoff letter agreements from current lenders to Borrower in form acceptable to Bank, which agreements, among other things, provide for the termination of liens and security interests of such lenders in the
property of Borrower, and with all such agreements in form acceptable to Bank; 
 (r) establishment of lockbox arrangements, satisfactory to
Bank; 
 (s) UCC financing statements relating to all obligor parties hereunder and otherwise under the Loan Documents; 
 (t) payment of the fees and Bank Expenses then due; and 
 (u) such other documents, agreements and instruments, and completion of such other matters, as Bank may deem necessary or appropriate in order to effectuate the terms and conditions of the Loan Documents. 

3.2. Conditions Precedent to all Credit Extensions. 
 Bank’s obligations to make each Credit Extension, including the initial Credit Extension, is subject to the following: 
 (a)
Timely receipt of any Payment/Advance Form; and 
  

 3 

 (b) The representations and warranties in Section 5 must be true (subject to the materiality
provisions in Section 5) on the date of the Payment/Advance Form and on the effective date of each Credit Extension and no Event of Default may have occurred and be continuing, or result from the Credit Extension. Each Credit Extension is
Borrower’s representation and warranty on that date that the representations and warranties of Section 5 remain materially true. 
 4.
CREATION OF SECURITY INTEREST. 
 4.1. Grant of Security Interest. 
 Borrower grants Bank a continuing security interest in all presently existing and later acquired Collateral to secure all Obligations and performance of
each of Borrower’s duties under the Loan Documents. Except for Permitted Liens, the Bank will, at all times, have a first-priority security interest in all of the Collateral. Bank’s lien and security interest in the Collateral will
continue until Borrower fully satisfies its Obligations, and all obligations of the Bank to make Advances or otherwise extend credit accommodations have terminated. 
 4.2. Authorization to File Financing Statements. 
 Borrower authorizes Bank to file financing
statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to perfect or protect Bank’s interest in the Collateral. 
 5. REPRESENTATIONS AND WARRANTIES. 
 Borrower represents and warrants that the following statements
are true and correct on the date hereof and Borrower covenants that the following statements will continue to be materially true and correct throughout the term of this Agreement and so long as any Obligations are outstanding: 
 5.1. Due Organization and Authorization. 
 Borrower
and each of its Subsidiaries is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing in, any state in which the conduct of its business or its ownership of property requires
that it be qualified, except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. Borrower has not changed its state of formation or its organizational structure or type or any organizational number (if
any) assigned by its jurisdiction of formation. 
 The execution, delivery and performance of the Loan Documents have been duly authorized,
and do not conflict with Borrower’s formation documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound
in which the default could reasonably be expected to cause a Material Adverse Change. 
 5.2. Collateral. 
 Borrower has good title to the Collateral, free of Liens except Permitted Liens. Borrower has no other deposit account, other than the deposit accounts
described in the Representations or Schedule 2. Each Account with respect to which Advances are requested by Borrower shall, on the date each Advance is requested and made, represent an undisputed bona fide existing unconditional obligation of the
account debtor created by the sale, delivery, and acceptance of goods or the rendition of services in the ordinary course of Borrower’s business. The Collateral is not in the possession of any third party 
  

 4 

 bailee (such as at a warehouse). In the event that Borrower, after the date hereof, intends to store or otherwise deliver
the Collateral to such a bailee, then Borrower will receive the prior written consent of Bank and such bailee must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank. Borrower has received no written notice of
any actual or imminent Insolvency Proceeding of any account debtor whose accounts are an Eligible Account in any Borrowing Base Certificate. All Inventory is in all material respects of good and marketable quality, free from material defects.
Borrower is the sole owner of the Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary course of business. Each Patent is, to the best of Borrower’s knowledge, valid and enforceable and no part of
the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property violates the rights of any third party, except to the extent such claim could not
reasonably be expected to cause a Material Adverse Change. 
 Borrower has informed Bank that it has historically entered into asset
acquisition transactions with Lucent Technologies and Scientific Atlanta, Inc., including the purchase of certain intellectual property assets from these third parties (the “Prior Acquisitions”). Without limitation of any term or condition
hereof, Borrower hereby represents and warrants to Bank that all assets acquired in such Prior Acquisitions and that now form part of or otherwise relate to the Collateral are free of any and all Liens other than for Permitted Liens. 
 5.3. Litigation. 
 Except as shown in the Schedule,
there are no actions or proceedings pending or, to the knowledge of Borrower’s Responsible Officers and legal counsel, threatened by or against Borrower or any Subsidiary, which could result in damages or costs to Borrower or any Subsidiary of
$100,000 or more, or in which an adverse decision could reasonably be expected to cause a Material Adverse Change. 
 5.4. No Material Adverse Change in
Financial Statements. 
 All consolidated financial statements for Borrower, and any Subsidiary, delivered to Bank fairly present in all
material respects (as of the date of such financial statements) Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any Material Adverse Change in Borrower’s consolidated
financial condition since the date of the most recent financial statements submitted to Bank. 
 5.5. Regulatory Compliance. 
 Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company
Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor
Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower’s or any Subsidiary’s properties or assets has been used by
Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each Subsidiary has timely filed (or
has filed for an extension in a timely manner and has complied with all requirements in connection with the fling and obtaining of any such extension including the payment of taxes in connection therewith) all required tax returns and paid, or made
adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP and which do not result in any tax lien on any of the Collateral. Borrower and each Subsidiary has obtained all consents,
approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted, except where the failure to do so could not reasonably
be expected to cause a Material Adverse Change. 
  

 5 

 5.6. Subsidiaries. 
 Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments. 
 5.7.
Representations; Full Disclosure. 
 The information in the Representations previously submitted to Bank continues to be true and correct
as of the date hereof. No written representation, warranty or other statement of Borrower in any certificate or written statement given to Bank (taken together with all such written certificates and written statements to Bank) contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading. 
 6. AFFIRMATIVE COVENANTS. 
 Borrower will do all of the following for so long as Bank has an obligation to lend, or
there are outstanding Obligations: 
 6.1. Government Compliance. 
 Borrower will maintain its and all Subsidiaries’ legal existence and good standing in its jurisdiction of formation and maintain qualification in each jurisdiction in which the failure to so qualify would
reasonably be expected to cause a material adverse effect on Borrower’s business or operations. Borrower will comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which
would reasonably be expected to cause a Material Adverse Change. 
 6.2. Financial Statements, Reports, Certificates. 
 (a) Borrower will deliver to Bank: (i) as soon as available, but no later than 30 days after the last day of each month, a company prepared unaudited
consolidated balance sheet and income statement covering Borrower’s consolidated operations during the period certified by a Responsible Officer and in a form acceptable to Bank; (ii) commencing with the Borrower’s fiscal year ending
December 31, 2003, as soon as available, but no later than 90 days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on
the financial statements from an independent certified public accounting firm reasonably acceptable to Bank; (iii) a prompt report of any legal actions pending or threatened (and with respect to any such threatened actions, if they are referred
to or otherwise reflected in a writing or otherwise if it is reasonable under the circumstances as determined by the Borrower in its good faith business judgment, to advise the Bank thereof) against Borrower or any Subsidiary that could result in
damages or costs to Borrower or any Subsidiary of $100,000 or more, or in which an adverse decision could reasonably be expected to cause a Material Adverse Change; (iv) budgets, sales projections, operating plans or other financial information
Bank reasonably requests; and (v) prompt notice of any material change in the composition of the Intellectual Property, including any subsequent ownership right of Borrower in or to any copyright, patent or trademark not shown in any
intellectual property security agreement between Borrower and Bank or knowledge of an event that materially adversely affects the value of the Intellectual Property. 
 (b) Within 20 days after the last day of each month, Borrower will deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer in the form of Exhibit C, with aged listings of accounts receivable and
accounts payable. 
  

 6 

 (c) Within 30 days after the last day of each month, Borrower will deliver to Bank with the monthly
financial statements a Compliance Certificate signed by a Responsible Officer in the form of Exhibit D. 
 (d) Allow Bank to audit
Borrower’s Collateral at Borrower’s expense (with the charges therefor to be $750 per person per day (or such higher amount as shall represent Bank’s then current standard charge for the same), plus reasonable out-of-pocket expenses).
Such audits will be conducted no more often than every 6 months (or, upon the effectiveness of the Asset Based Terms, no more often than every three months), unless an Event of Default or an event which, with notice or passage of time or both would
constitute an Event of Default, has occurred and is continuing. 
 (e) Allow Bank to cause an appraisal of the inventory of Borrower at
Borrower’s expense on an annual basis with an appraiser and with results acceptable to Bank in its discretion, provided that upon the effectiveness of the Asset Based Terms, such an appraisal may be requested by the Bank on a semi-annual
basis, if the circumstances so warrant. 
 6.3. Inventory; Returns. 
 Borrower will keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between Borrower and its account debtors will follow Borrower’s customary practices as they
exist at execution of this Agreement. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims, that involve more than $50,000. 
 6.4. Taxes. 
 Borrower will make, and cause each Subsidiary to make, timely payment of all material federal, state, and local
taxes or assessments (except for taxes or assessments being contested in good faith with adequate reserves under GAAP and which do not result in any tax lien on any of the Collateral) and will deliver to Bank, on demand, appropriate certificates
attesting to the payment. 
 6.5. Insurance. 
 Borrower will keep its business and the Collateral insured for risks and in amounts, as Bank may reasonably request. Insurance policies will be in a form, with companies, and in amounts that are satisfactory to Bank in Bank’s
reasonable discretion. All personal property policies will have a lender’s loss payable endorsement showing Bank as an additional loss payee and all liability policies will show the Bank as an additional insured and provide that the insurer
must give Bank at least 20 days notice before canceling its policy. At Bank’s request, Borrower will deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy will, at Bank’s option, be
payable to Bank on account of the Obligations. 
 6.6. Primary Accounts. 
 Borrower shall at all times maintain its primary banking relationship with Bank. Without limiting the generality of the foregoing, Borrower shall, at all times, maintain not less than 85% of its total cash and
investments on deposit with Bank. As to any Deposit Accounts and investment accounts maintained with another institution, Borrower shall cause such institution to enter into a control agreement in form acceptable to Bank in its good faith business
judgment in order to perfect Bank’s first-priority security interest in said Deposit Accounts and investment accounts. 
 6.7. Financial Covenants;
Additional Projections. 
 Borrower will comply with the financial covenants set forth on the Schedule. Borrower shall provide to Bank the
Additional Projections (as defined in the Schedule) no later than November 30 of 
  

 7 

 each year with respect to the following year. The information in such Additional Projections is to be used by the Bank in
order to establish certain financial covenant targets for later years during the term of this Agreement. Such a process introduces uncertainty as to the amounts required for Borrower’s financial covenant compliance in the future. Regardless of
any such uncertainty, however, Borrower hereby acknowledges and agrees that it is knowingly and without reservation agreeing to the foregoing procedure and fully understands that Events of Default may arise from Borrower’s non-compliance with
such later-established amounts. 
 6.8. Intellectual Property Rights. 
 Borrower has no present maskworks, software, computer programs and other works of authorship registered with the United States Copyright Office except as disclosed on Exhibit 6.8 hereto, and Borrower shall not
hereafter register any maskworks, software, computer programs or other works of authorship subject to United States copyright protection with the United States Copyright Office without first complying with the following: (i) providing Bank with
at least 15 days prior written notice thereof, (ii) providing Bank with a copy of the application for any such registration and (iii) executing and filing such other instruments, and taking such further actions as Bank may reasonably
request from time to time to perfect or continue the perfection of Bank’s interest in the Collateral, including without limitation the filing with the United States Copyright Office, simultaneously with the filing by Borrower of the application
for any such registration, of a copy of this Agreement or a Supplement hereto in form acceptable to Bank identifying the maskworks, software, computer programs or other works of authorship being registered and confirming the grant of a security
interest therein in favor of Bank. 
 Borrower will (i) protect, defend and maintain the validity and enforceability of the Intellectual
Property in a manner consistent with past practices and, in any event, consistent with reasonable and prudent business practices and promptly advise Bank in writing of material infringements and (ii) not allow any Intellectual Property to be
abandoned, forfeited or dedicated to the public without Bank’s written consent. 
 6.9. Lockbox Arrangements, etc. 
 Borrower shall establish a lockbox account with Bank in such form as Bank may specify. 
 6.10. Further Assurances. 
 Borrower will execute any further instruments and take further action as
Bank reasonably requests to perfect or continue Bank’s security interest in the Collateral or to effect the purposes of this Agreement. 
 7.
NEGATIVE COVENANTS. 
 Borrower will not do any of the following without Bank’s prior written consent, which will not be
unreasonably withheld, for so long as Bank has an obligation to lend and there are any outstanding Obligations: 
 7.1. Dispositions. 
 Convey, sell, lease, transfer or otherwise dispose of (collectively “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part
of its business or property or any Collateral, except for Transfers (i) of Inventory in the ordinary course of business; (ii) of non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in
the ordinary course of business; or (iii) of worn out or obsolete Equipment. 
  

 8 

 7.2. Changes in Business, Non-Ordinary Course Transactions, Ownership, Management or Locations of Collateral.

 Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower or
reasonably related thereto, or enter into any transaction outside the ordinary course of business, or permit there to be a change in the record or beneficial ownership of an aggregate of more than 25% of the outstanding shares of stock of Borrower,
in one or more transactions, compared to the ownership of outstanding shares of stock of Borrower in effect on the date hereof (other than by the sale or issuance of Borrower’s equity securities to officers, employees and consultants in a
public offering or to venture capital investors so long as Borrower identifies to the Bank, in writing, the venture capital investors prior to the closing of the investment). Borrower will not, without at least 30 days prior written notice to the
Bank, relocate its chief executive office, change its state of formation (including reincorporation), change its organizational number or name or add any new offices or business locations (including warehouses) in which Borrower maintains or stores
over $5,000 in Collateral. Borrower has requested that Bank consent to the Series A Transaction and Bank hereby consents to the Series A Transaction, provided that such consent does not waive or modify any of the terms or provisions hereof
for any other transaction or undertaking by the Borrower other than specifically relating to the Series A Transaction. 
 7.3. Mergers or Acquisitions.

 Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of
its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except that a Subsidiary may merge or consolidate into another Subsidiary or into Borrower, provided it is agreed that the Bank consents to the
acquisition of Sixth Dimension, Inc., as currently contemplated and on the terms as previously disclosed to the Bank provided that the Affiliate company of the Borrower that, upon the consummation of such acquisition, becomes the owner of the
acquired assets shall be required concurrently with any such closing to become a guarantor and security agreement obligor party under the guaranty and security agreement documents entered into by Comverge Energy Management, Inc. and Comverge Energy
Partners, Ltd. in connection with the initial closing of the transactions under and relating to this Agreement, provided, further, any such new guarantor and security agreement debtor shall, in addition, execute and deliver such documents and
agreements, and take such additional actions, as Bank may reasonably request in order to effectuate the terms, provisions and objectives of such guaranty and security agreement documentation. 
 7.4. Indebtedness. 
 Create, incur, assume, or be
liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5. Encumbrance. 
 Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit
any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted here, subject to Permitted Liens. 
 7.6. Distributions; Investments. 
 Directly or indirectly acquire or own any Person, or make any
Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries to do so. Pay any dividends (other than dividends payable solely in stock of the Borrower) or make any distribution or payment or redeem, retire or
purchase any capital stock, provided, however, Borrower may repurchase shares under and pursuant to the Permitted Series A Repurchase Transaction and the Permitted Series A-1 Repurchase 
  

 9 

 Transactions subject to the prior satisfaction of all applicable conditions to each of such transactions as set forth in
respective provisions of each of such defined terms. The parties hereto acknowledge and agree that the foregoing general negative covenant provision restricts transfers of funds, however characterized, from Borrower to its parent company, Data
Systems & Software, Inc. (“DSSI”), or to any other Affiliate of Borrower, other than for transfers of funds by Borrower in an aggregate amount in any fiscal year not to exceed $400,000 relating to the following:
(A) reimbursement by Borrower to DSSI of insurance premiums relating to Borrower and its businesses, including, e.g., casualty insurance and employee health insurance; (B) purchases of computer equipment from Databit, a subsidiary of DSSI;
(C) rent payable to dSIT, a DSSI subsidiary; and (D) other ordinary course obligations consistent with the past business practices of Borrower. 
 7.7. Transactions with Affiliates. 
 Directly or indirectly enter into or permit to exist any material transaction with any
Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a
nonaffiliated Person. 
 7.8. Subordinated Debt. 
 Make or permit any payment on any Subordinated Debt, except under the terms of the Subordinated Debt, or amend any provision in any document relating to the Subordinated Debt without Bank’s prior written consent, provided that as long
as no changes are made to any term or provision relating to Bank and the nature and extent of any subordination term in favor of Bank, then immaterial modifications to the Subordinated Debt instrument (but specifically not including, and without
limitation of the foregoing materiality standard, interest rate, loan amount or repayment terms) may be made thereto provided that Bank is provided notice thereof substantially concurrently therewith. 
 7.9. Compliance. 
 Become an “investment
company” or a company controlled by an “investment company,” under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any
Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply in any material respect with the Federal Fair Labor
Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business or operations or would reasonably be expected to cause a Material Adverse Change, or
permit any of its Subsidiaries to do so. 
 8. EVENTS OF DEFAULT. 
 Any one of the following is an Event of Default: 
 8.1. Payment Default. 
 If Borrower fails to pay any of the Obligations within 3 days after their due date (with the understanding that upon the effectiveness of the Asset Based
Terms, the foregoing 3 day period is no longer applicable, as set forth in paragraph 6 of the provisions comprising the Asset Based Terms). 
 8.2.
Certain Defaults. 
 If Borrower (i) fails to provide the financial statements called for by Section 6.2 hereof or by any other
provisions of this Agreement, within the time therein provided; or (ii) Borrower breaches any of the financial covenants set forth in Section 6.7 of this Agreement; or (iii) fails to perform or comply with any other term, condition or
covenant in any other agreement between Borrower and Bank which is not cured within any cure period provided in such agreement. 
  

 10 

 8.3. Other Defaults. 
 If Borrower fails to perform or comply with any other term, condition or covenant in this Agreement (other than as set forth in Section 8.1 or 8.2 above), and such failure is not cured within 30 days after such
default. 
 8.4. Material Adverse Change. 
 A Material Adverse Change occurs. 
 8.5. Attachment. 
 If any of Borrower’s assets having a value in the aggregate of more than $50,000 is attached, seized, levied on, or comes into possession of a trustee or receiver and the attachment, seizure or levy is not
removed in 10 days, or if Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business or if a judgment or other claim becomes a Lien on a material portion of Borrower’s assets, or if a notice of
lien, levy, or assessment is filed against any of Borrower’s assets by any government agency and not paid within 10 days after Borrower receives notice. These are not Events of Default if stayed or if a bond is posted pending contest by
Borrower; 
 8.6. Insolvency. 
 If
Borrower fails to pay its debts generally as they mature, or if Borrower begins an Insolvency Proceeding, or if an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within 45 days; 
 8.7. Other Agreements. 
 If there is a default in any
agreement between Borrower and a third party that gives the third party the right to accelerate any Indebtedness exceeding $100,000 or that could cause a Material Adverse Change, including without limitation any default under the documentation for
that portion of the Series A Transaction relating, and entered into in connection with, the Series A-1 Preferred Stock of the Borrower; 
 8.8. Judgments.

 If a money judgment(s) in the aggregate of at least $100,000 is rendered against Borrower and is unsatisfied and unstayed for 10 days;

 8.9. Misrepresentations. 
 If Borrower
or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or representation in this Agreement or in any writing delivered to Bank or to induce Bank to enter this Agreement or any
Loan Document; or 
 8.10. Guaranty. 
 Any
guaranty, security agreement, or pledge agreement relating to any of the Obligations ceases for any reason to be in full force or any Guarantor or applicable obligor does not perform any obligation under any instrument relating to any of the
Obligations, or any material misrepresentation or material misstatement exists now or later in any warranty or representation therein or in any certificate delivered to Bank in connection with the guaranty or related documents, or any circumstance
described in Sections 8.5, 8.6 or 8.8 occurs to any Guarantor. 
  

 11 

 No Credit Extensions will be made during any of the cure periods set forth in Sections 8.1-8.10 above.

 9. BANK’S RIGHTS AND REMEDIES. 
 9.1.
Rights and Remedies. 
 When an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following:

 (a) Declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.6 occurs all Obligations
are immediately due and payable without any action by Bank); 
 (b) Stop advancing money or extending credit for Borrower’s benefit
under this Agreement or under any other agreement between Borrower and Bank; 
 (c) Settle or adjust disputes and claims directly with
account debtors for amounts, on terms and in any order that Bank considers advisable; 
 (d) Make any payments and do any acts it considers
necessary or reasonable to protect its security interest in the Collateral. Borrower will assemble the Collateral if Bank requires and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain
possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its
premises, without charge, to exercise any of Bank’s rights or remedies; 
 (e) Apply to the Obligations any (i) balances and
deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower; 
 (f) Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Intellectual
Property, and advertising matter, and any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section,
Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; and 
 (g) Dispose of the Collateral
according to the Code. 
 9.2. Power of Attorney. 
 Effective only when an Event of Default occurs and continues, Borrower irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower’s name on any checks or other forms of payment or security; (ii) sign
Borrower’s name on any invoice or bill of lading for any Account or drafts against account debtors, (iii) make, settle, and adjust all claims under Borrower’s insurance policies; (iv) settle and adjust disputes and claims about
the Accounts directly with account debtors, for amounts and on terms Bank determines reasonable; and (v) transfer the Collateral into the name of Bank or a third party as the Code permits. Bank may exercise the power of attorney to sign
Borrower’s name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred. Bank’s appointment as Borrower’s attorney in fact, and all of
Bank’s rights and powers, are coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 
  

 12 

 9.3. Accounts Collection. 
 When an Event of Default occurs and continues, Bank may notify any Person owing Borrower money of Bank’s security interest in the funds and demand payment of, and collect any Accounts, general intangibles and
other Collateral, and, in connection therewith, Borrower irrevocably authorizes Bank to endorse or sign Borrower’s name on all collections, receipts, instruments and other documents, and, in Bank’s good faith business judgment, to grant
extensions of time to pay, compromise claims and settle Accounts and general intangibles for less than face value. When an Event of Default occurs and continues, Borrower shall collect all payments in trust for Bank and, if requested by Bank,
immediately deliver the payments to Bank in the form received from the account debtor, with proper endorsements for deposit. 
 9.4. Bank Expenses.

 If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other
amount, which Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at
the then applicable rate and secured by the Collateral. No payments by Bank shall be deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 
 9.5. Bank’s Liability for Collateral. 
 If Bank
complies with reasonable banking practices and Section 9207 of the Code, it is not liable for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or
(d) any act or default of any carrier, warehouseman, bailee, or other person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
 9.6. Remedies Cumulative. 
 Bank’s rights and remedies under this Agreement, the Loan Documents, and all other
agreements are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election, and Bank’s waiver of any Event of Default is not a continuing waiver.
Bank’s delay is not a waiver, election, or acquiescence. No waiver is effective unless signed by Bank and then is only effective for the specific instance and purpose for which it was given. 
 9.7. Demand Waiver. 
 Borrower waives demand, notice
of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which
Borrower is liable. 
 9.8. Asset Based Terms. 
 Without limiting Bank’s other rights and remedies, if an Event of Default occurs and is continuing, the provisions of Exhibit E hereto (the “Asset Based Terms Provisions”) shall be effective, upon written notice by Bank to
the Borrower. 
  

 13 

 10. NOTICES. 
 All notices or demands by any party about this Agreement or any other related agreement must be in writing and be personally delivered or sent by an overnight delivery service, by certified mail, postage prepaid,
return receipt requested, or by fax to the addresses set forth at the beginning of this Agreement and, in the case of notices by fax, to the latest fax number a party as for the other party. A party may change its notice address by giving the other
party written notice. 
 11. CHOICE OF LAW. VENUE AND JURY TRIAL WAIVER. 
 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of
the State and Federal courts in Santa Clara County, California. 
 BORROWER AND BANK EACH HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN BANK AND BORROWER, OR ANY CONDUCT, ACTS OR OMISSIONS OF BANK OR BORROWER OR ANY OF THEIR
DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH BANK OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER
INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 12. GENERAL PROVISIONS 
 12.1. Successors and Assigns. 
 This Agreement binds
and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights under it without Bank’s prior written consent which may be granted or withheld in Bank’s discretion. Bank
has the right, without the consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits under this Agreement. 
 12.2. Indemnification. 
 Borrower will indemnify,
defend and hold harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities asserted by any other Person in connection with the transactions contemplated by the Loan Documents; and
(b) all losses or Bank Expenses incurred, or paid by Bank from, following, or consequential to transactions between Bank and Borrower (including reasonable attorneys fees and expenses), except, in the case of both (a) and (b), for losses
caused by Bank’s gross negligence or willful misconduct. 
 12.3. Time of Essence. 
 Time is of the essence for the performance of all obligations in this Agreement. 
 12.4. Severability of Provision. 
 Each provision of this Agreement is severable from every other
provision in determining the enforceability of any provision. 
 12.5. Amendments in Writing, Integration. 
 All amendments to this Agreement must be in writing and signed by Borrower and Bank. This Agreement represents the entire agreement about this subject
matter, and supersedes prior negotiations 
  

 14 

 or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties
about the subject matter of this Agreement merge into this Agreement and the Loan Documents. 
 12.6. Counterparts. 
 This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and
delivered, are an original, and all taken together, constitute one Agreement. 
 12.7. Survival. 
 All covenants, representations and warranties made in this Agreement continue in full force while any Obligations remain outstanding. The obligations of
Borrower in Section 12.2 to indemnify Bank will survive until all statutes of limitations for actions that may be brought against Bank have run. 
 12.8. Confidentiality. 
 In handling any confidential information, Bank will exercise the same degree of care that it
exercises for its own proprietary information, but disclosure of information may be made (i) to Bank’s subsidiaries or affiliates in connection with their business with Borrower, (ii) to prospective transferees or purchasers of any
interest in the loans (provided, however, Bank shall use commercially reasonable efforts in obtaining such prospective transferee or purchasers agreement of the terms of this provision), (iii) as required by law, regulation, subpoena, or other
order, (iv) as required in connection with Bank’s examination or audit and (v) as Bank considers appropriate exercising remedies under this Agreement. Confidential information does not include information that either: (a) is in
the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank (other than such information becoming part of the public domain directly resulting from intentional conduct by Bank
in connection therewith); or (b) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 
 12.9. Attorneys’ Fees, Costs and Expenses. 
 In any action or proceeding between Borrower and
Bank arising out of the Loan Documents, the prevailing party will be entitled to recover its reasonable attorneys’ fees and other reasonable costs and expenses incurred, in addition to any other relief to which it may be entitled. 

13. DEFINITIONS. 
 13.1. Definitions. 
 In this Agreement: 
 “Accounts” is defined on Exhibit A hereto. 
 “Affiliate” means (1) any of Borrower’s
officers or directors, and if Borrower is a limited liability company, Borrower’s managers and members, and if Borrower is a partnership, Borrower’s general and limited partners; (ii) a Person that, directly or indirectly, owns or
controls, is controlled by or is under common control with Borrower, and any of such person’s officers or directors, and if such person is a limited liability company, such person’s managers and members, and if such person is a
partnership, such person’s general and limited partners. 
 “Appraisal Condition” shall have the meaning ascribed to
such term in Section 7.3 of the Schedule. 
  

 15 

 “Bank Expenses” are all audit fees and expenses and reasonable costs and expenses
(including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings), or otherwise relating to Borrower or the Loan Documents,
including, but not limited to, any reasonable attorneys’ fees and costs Bank incurs in order to do the following: obtain legal advice in connection with this Agreement or Borrower; enforce, or seek to enforce, any of Bank’s rights;
prosecute actions against, or defend actions by, account debtors; commence, intervene in, or defend any action or proceeding; initiate any complaint to be relieved of the automatic stay in bankruptcy; file or prosecute any bankruptcy claim,
third-party claim, or other claim; protect, obtain possession of, lease, dispose of, or otherwise enforce Bank’s security interest in, the Collateral; and otherwise represent Bank in any litigation relating to Borrower, with the understanding
that Collateral audit fees are limited to the extent set forth in Section 6.2(d) hereof. 
 “Borrower’s Books” are
all Borrower’s books and records including ledgers, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the
information. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which the Bank is closed. 

“Closing Date” is the date of this Agreement. 
 “Code” is the California Uniform Commercial Code, in effect from time to time. 
 “Collateral” is the property described on Exhibit A. 
 “Contingent Obligation” is, for any
Person, any direct or indirect liability, contingent or not, of that Person for (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co made,
discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest
rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but
“Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if
not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. 
 “Credit Extension” is each Revolving Advance, the Term Loan, Letters of Credit, and each other extension of credit by Bank for
Borrower’s benefit. 
 “Current Liabilities” are the aggregate amount of Borrower’s Total Liabilities which mature
within one (1) year. 
 “Easton Hunt” is Easton Hunt Capital Partners, L.P., a Delaware limited partnership 

“Easton Hunt Lien” has the meaning ascribed to such term in the definition of Permitted Liens below. 
 “Eligible Accounts” are Accounts in the ordinary course of Borrower’s business that meet all Borrower’s representations and
warranties in Section 5; but Bank may change eligibility standards by giving Borrower notice. Unless Bank agrees otherwise in writing, Eligible Accounts will not include: 
 (a) Accounts that the account debtor has not paid within 90 days of invoice date; 
  

 16 

 (b) Accounts for an account debtor, 50% or more of whose Accounts have not been paid within 90 days of
invoice date; 
 (c) Credit balances over 90 days from invoice date; 
 (d) Accounts for an account debtor, including Affiliates, whose total obligations to Borrower exceed 25% of all Accounts, for the amounts that exceed
that percentage, provided however, that the Bank may consider modifying the foregoing percentage for Accounts relating to Gulf Power Company as account debtor with the understanding that any decision by Bank in that regard to so modify
such percentage shall be in the Bank’s sole discretion and Bank has made no commitment to do so; 
 (e) Accounts for which the account
debtor does not have its principal place of business in the United States unless (i) approved by Bank in writing or (ii) supported by foreign credit insurance or a letter of credit in form and substance acceptable to Bank, in each case as
is acceptable to Bank in its sole discretion; 
 (f) Accounts for which the account debtor is a federal, state or local government entity or
any department, agency, or instrumentality unless there has been compliance with the United States Assignment of Claims Act as Bank shall reasonably determine; 
 (g) Accounts for which Borrower owes the account debtor, but only up to the amount owed (sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts); 
 (h) Accounts for demonstration or promotional equipment, or in which goods are consigned, sales guaranteed, sale or return, sale on approval, bill and
hold, or other terms if account debtor’s payment may be conditional; 
 (i) Accounts for which the account debtor is Borrower’s
Affiliate, officer, employee, or agent; 
 (j) Accounts in which the account debtor disputes liability or makes any claim or Bank believes
there may be a basis for dispute (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business;. 
 (k) Accounts for which Bank reasonably determines collection to be doubtful. 
 “Eligible lnventory” [Not Applicable] 
 “Equipment” is defined on Exhibit A hereto. 
 “ERISA” is the Employment
Retirement Income Security Act of 1974, and its regulations. 
 “GAAP” is generally accepted accounting principles,
consistently applied. 
 “Guarantor” is any present or future guarantor or third party surety of any of the Obligations,
including Data Systems & Software, Inc. (with it being acknowledged that the such pledgor is not generally liable for all Obligations hereunder but only as specifically set forth in the third party pledge agreement entered into by Data
Systems & Software, Inc. in favor of Bank(). 
 “Indebtedness” is (a) indebtedness for borrowed money or the
deferred price of property or services, including all amounts owing in connection with any and all Credit Extensions and any and all other amounts owing to Bank however characterized, (b) obligations evidenced by notes, bonds, debentures or
similar instruments, (c) capital lease obligations and (d) Contingent Obligations. 
  

 17 

 “Insolvency Proceeding” are proceedings by or against any Person under the United States
Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

“Intellectual Property” is defined on Exhibit A hereto. 
 “Inventory” is defined on Exhibit A hereto. 
 “Investment” is any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance or capital contribution to any Person. 
 “Letter of Credit” is defined in Section 2.1.2. 
 “Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 
 “Loan Documents” are, collectively, this Agreement, any note, or notes or guaranties or pledge agreements executed by Borrower or Guarantor, and any other present or future agreement between Borrower and/or for the benefit
of Bank in connection with this Agreement, all as amended, extended or restated. 
 “Material Adverse Change” is any of the
following: (i) a material adverse change in the business, operations, or condition (financial or otherwise) of the Borrower, or (ii) a material impairment of the prospect of repayment of any portion of the Obligations; or (iii) a
material impairment of the value or priority of Bank’s security interests in the Collateral. 
 “Maturity Date” has the
meaning ascribed to such term in the Schedule. 
 “Obligations” are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including with respect to any and all Credit Extensions, reimbursement obligations under letters of credit and including interest accruing after Insolvency Proceedings begin and debts, or liabilities, or
obligations of Borrower assigned to Bank. 
 “Patents” are patents, patent applications and like protections, including
improvements, divisions, continuations, renewals, reissues, extensions and continuations in part of the same. 
 “Permitted
Indebtedness” is: 
 (a) Borrower’s indebtedness to Bank under this Agreement or any other Loan Document; 
 (b) Indebtedness existing on the Closing Date and shown on Schedule 2; 
 (c) Subordinated Debt; 
 (d) Indebtedness to trade creditors incurred in the ordinary course of business;
and 
 (e) Indebtedness secured by Permitted Liens; 
 (f) Indebtedness arising in connection with the Put-Call Agreement, provided that performance of the Borrower’s obligations to repurchase securities thereunder is limited to the permitted transactions
under Section 7.6 hereof; and 
  

 18 

 (g) Indebtedness arising in the extension, renewal or refinancing of the indebtedness described in (a),
(b), (d), (e) and (f), provided that the principal amount of the indebtedness may not increase and the associated terms shall not be more burdensome on Borrower. 
 “Permitted Investments” are: 
 (a) Investments shown on Schedule 2 and existing on the
Closing Date; and 
 (b) (i) marketable direct obligations issued or unconditionally guaranteed by the United States or its agency or any
State maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service,
Inc., and (iii) Bank’s certificates of deposit issued maturing no more than 1 year after issue. 
 “Permitted
Liens” are: 
 (a) Liens existing on the Closing Date and shown on Schedule 2 or arising under this Agreement or other Loan
Documents; 
 (b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good
faith and for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank’s security interests; 
 (c) Purchase money Liens (i) on Equipment acquired or held by Borrower or its Subsidiaries incurred for financing the acquisition of the Equipment, or (ii) existing on equipment when acquired, if the Lien is confined to the
property and improvements and the proceeds of the equipment; 
 (d) Nonexclusive licenses and non-exclusive sublicenses granted by Borrower
in the ordinary course of its business; 
 (e) Leases or subleases granted in the ordinary course of Borrower’s business, including in
connection with Borrower’s leased premises or leased property; 
 (f) Liens granted to Pacific Corp. relating to installed items
consisting of digital control units with such lien only extending thereto as items of equipment and any such lien shall not, in any event, extend to any interest in or to any item of Intellectual Property of Borrower relating thereto (further it is
understood that any such Liens are permitted to be senior to the Lien of the Bank therein); 
 (g) Priority lien in deposit account number
             at Bank in which Two Million Dollars ($2,000,000) has been deposited by Borrower, which lien arises from a security and pledge agreement between Borrower and Easton Hunt
dated as of April 7, 2003, and which lien is also referred to in an account control agreement between Bank and Easton Hunt; Easton Hunt intends to perfect its lien therein through the execution and delivery of such control agreement (with such
lien being referred to herein as the “Easton Hunt Lien”). 
 (h) Liens incurred in the extension, renewal or refinancing of the
indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase.

 “Permitted Repurchase Transaction” shall have the meaning ascribed to such term in Section 7.6 of this Agreement.

 “Permitted Series A Repurchase Transaction” shall mean the following on a collective basis (with the following terms that
are not defined in this Loan Agreement having the meanings set forth in the 
  

 19 

 Put-Call Agreement): (A) the Borrower determines to effect a repurchase transaction under its Series A Call Right;
(B) such a determination may only be made for purposes of this Agreement at such time after Borrower has sold more than $3,000,000 in Borrower’s Series A Preferred Stock after the date of the Put-Call Agreement and prior to the Call Date;
and (C) Borrower may only repurchase, as a maximum, such number of its Series A Preferred Stock equal to the minimum number required in Section 2.2(b) of the Put-Call Agreement; with the further understanding that Borrower may make
additional repurchases under the Series A Call Right that fall outside of the limitations and restrictions set forth above if Bank provides its written consent thereto. 
 “Permitted Series A-1 Repurchase Transaction” shall mean the repurchase of Series A-1 Preferred Stock of the Borrower pursuant to either the Series A-1 Call Right (as described in Section 2.1 of
the Put-Call Agreement) or the Series A-1 Put Right (as described in Section 1.1 of the Put-Call Agreement), and with any of such transactions complying with and satisfying all the terms and conditions set forth the Put-Call Agreement relating
thereto. 
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company
association, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 
 “Put-Call Agreement” shall mean that certain Put-Call Agreement dated as of April     , 2003 by
and among the Borrower and Easton Hunt Capital Partners, L.P., an executed, final, complete and correct copy of which is attached hereto as Exhibit F. 
 “Quick Assets” has, on any date, the meaning ascribed to such term on the Schedule. 
 “Representations” are the written Representations and Warranties of Borrower dated March 13, 2003. 
 “Responsible Officer” is each of the Chief Executive Officer, the Chief Financial Officer and the Controller of Borrower. 
 “Revolving Advance” or “Revolving Advances” shall have the meaning ascribed to such term in the Credit Limit section of the Schedule. 
 “Revolving Line Credit Amount” is defined in the Schedule. 
 “Schedule” is Schedule 1 to this Agreement. 
 “Schedule 2” is Schedule 2 to this Agreement. 
 “Series A Transaction”
shall mean the Series A Preferred Stock and Series A-1 Preferred Stock equity financing transaction of the Borrower from which Borrower receives at least $13,000,000 in net proceeds in the aggregate therefrom and which generally conforms to the
material terms and conditions as disclosed by Borrower to Bank in writing prior to the date hereof. 
 “Subordinated Debt”
is debt incurred by Borrower subordinated to Borrower’s indebtedness owed to Bank and which is reflected in a written agreement in a manner and form acceptable to Bank and approved by Bank in writing. 
 “Subsidiary” is for any Person, or any other business entity of which more than 50% of the voting stock or other equity interests is
owned or controlled, directly or indirectly, by the Person or one or more Affiliates of the Person. 
  

 20 

 “Tangible Net Worth” is, on any date, the consolidated total assets of Borrower and its
Subsidiaries minus, (i) any amounts attributable to (a) goodwill, (b) intangible items such as unamortized debt discount and expense, Patents, trade and service marks and names, copyrights and research and development expenses except
prepaid expenses, and (c) reserves not already deducted from assets, and (ii) Total Liabilities. 
 “Term Loan”
shall have the meaning ascribed to such term as is set forth in the Schedule I to this Agreement. 
 “Term Loan Prepayment
Conditions” shall mean the following: (A) the Permitted Repurchase Transaction has been effected in accordance with its terms (or Borrower, at its option, has effected a repurchase of its Series A-1 Preferred Stock having the same
economic effect as the Permitted Repurchase Transaction); and, at any time after the consummation of the Series A Transaction, Borrower has received net proceeds (but specifically not including any proceeds from the Series A Transaction) in the
amount of the Permitted Repurchase Transaction from a separate equity financing having terms and conditions substantially similar to those arising under the Series A Transaction other than for the terms applicable to the Series A-1 Preferred Stock
of the Borrower; or (B) the time period for the Permitted Repurchase Transaction has lapsed and such Permitted Repurchase Transaction may no longer be effected. 
 “Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness, and current portion
Subordinated Debt allowed to be paid, but excluding all other Subordinated Debt. 
 IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first above written. 
  

			
	BORROWER:
	
	COMVERGE, INC.
		
	By	 	 /s/ Thomas W. Wren

	Name	 	Thomas W. Wren
	Title	 	EVP
		
	BANK:	 	
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Shiela Colson

	Title	 	VP

  

 21 

 Schedule 1 to 
 Loan and Security Agreement 
 Borrower:     Comverge, Inc. 
 Date:               April 7, 2003 
 This Schedule forms an integral part of the Loan and Security Agreement (the “Loan Agreement”) between Silicon Valley Bank (“Bank”) and the
above-borrower (“Borrower”) of even date herewith. (Capitalized terms used herein, which are not defined, shall have the meanings set forth in the Loan Agreement.) 
 1. CREDIT LIMIT 
      (Section 2.1.1): 
  

			
	DURING ALL PERIODS IN WHICH THE ASSET BASED TERMS ARE NOT IN EFFECT, THE IMMEDIATELY FOLLOWING PROVISIONS (I) AND (II) BELOW SHALL APPLY AND BE EFFECTIVE
(REFERRED TO HEREIN AS THE “NON-ASSET BASED CREDIT LIMIT TERMS”):
		
		  	(I) Revolving Loans. An amount not to exceed the lesser of (A) or (B) (with Loans made pursuant to the provisions of this clause (I) being referred to herein as the “Revolving
Loans”):
		
		  	(A) $5,000,000 at any one time outstanding (the “Revolving Line Credit Amount”); or
		
		  	(B) The sum of (1) and (2):
		
		  	 (1) The sum of (i) and (ii):

		
		  	 (i) Up to 80% of the amount of Borrower’s Eligible Accounts; plus

		
		  	 (ii) Up to the lesser of: (w) 25% of the value of the Eligible Inventory based on the lower of cost or market value; (x) on and after the date of
the satisfaction of the Appraisal Condition, 80% of the net orderly liquidation value of Eligible Inventory, based on an appraisal acceptable to Bank in its discretion; (y) $500,000 or (z) 25% of the aggregate amount of Eligible Accounts
outstanding from time to time; provided that until an appraisal is completed, Loans under this clause (ii) will be the lesser of (w), (y) or (z);PLUS

  

 - 1 - 

			
		  	(2) (i) Prior to the date that is eighteen months from the date hereof, an amount equal to the lesser of (i) $700,000 or (ii) $1,500,000 minus the outstanding aggregate
amount of Letters of Credit (Loans made pursuant this clause (B)(2) are referred to herein as the “Non-Formula Loans”), provided that upon the EBITDA Breach (as defined in the Section 7.4 of this Schedule), then the
provisions of such Section 7.4 shall be fully applicable in place of the foregoing; and
		
		  	 (ii) On and after the date that is eighteen months from the date hereof, the outstanding aggregate amount of Letters of Credit hereunder extended pursuant
to the terms and conditions hereof. In connection therewith, no further Non-Formula Loans will be made after such date and all then outstanding Non-Formula Loans shall be converted to Loans under clause (B)(1) hereof, to the extent of availability
thereunder (or shall otherwise be immediately repaid if no such availability exists);

		
		  	PLUS
		
		  	(II) Term Loan. Concurrently with the initial closing of the Loan Agreement, Bank will make a loan (the “Term Loan”) to Borrower in the aggregate principal amount of $1,500,000,
which is being extended for the purpose of repaying the indebtedness of the Borrower owing to certain existing lenders of Borrower. Borrower shall repay the principal amount of the Term Loan on April 1, 2006 in a single payment of principal,and
on which date any and all Obligations relating to the Term Loan shall also be fully due and payable, subject, however, to acceleration as otherwise set forth in this Agreement. Borrower shall, however, pay interest on the outstanding principal
amount of the Term Loan on a monthly basis in accordance herewith. Further, it is understood that the Term Loan may not be prepaid by Borrower until the Term Loan Prepayment Conditions (as such term is defined in Section 13.1 of the Loan
Agreement) are satisfied, and at such time, Borrower shall be permitted, at its option, to repay, in part or in full, the Term Loan.
	
	 DURING ALL PERIODS IN WHICH THE ASSET BASED TERMS ARE IN EFFECT, THE IMMEDIATELY FOLLOWING PROVISIONS (I) AND (II) BELOW SHALL
APPLY AND BE EFFECTIVE AND THE NON-ASSET BASED CREDIT LIMIT TERMS SHALL NO LONGER BE IN FORCE OR EFFECT:

		
		  	 (I) Revolving Loans. An amount not to exceed the lesser of (A) or (B) (with Loans made pursuant to the provisions of this clause (I) being
referred to herein as the “Revolving Loans”):
  
 (A) $5,000,000 at any one time outstanding (the “Revolving Line Credit Amount”); or

		
		  	(B) The sum of (i) and (ii) minus(iii):
		
		  	(i) Up to 80% of the amount of Borrower’s Eligible Accounts; plus

  

 - 2 - 

			
		  	(ii) Up to the lesser of: (w) 25% of the value of the Eligible Inventory based on the lower of cost or market value; (x) on and after the date of the satisfaction of the Appraisal Condition,
80% of the net orderly liquidation valve of Eligible Inventory, based on an appraisal acceptance to Bank in its discretion; (y) $500,000; or (z) 25% of the aggregate amount of Eligible Accounts outstanding from time to time;
		
		  	minus
		
		  	(iii) the outstanding aggregate amount of Letters of Credit hereunder extend pursuant to the terms and conditions hereof;
		
		  	PLUS
		
		  	(II) Term Loan. Concurrently with the initial closing of the Loan Agreement, Bank will make a loan (the “Term Loan”) to Borrower in the aggregate principal amount of
$1,500,000, which is being extended for the purpose of repaying the indebtedness of the Borrower owing to certain existing lenders of Borrower. Borrower shall repay the principal amount of the Term Loan on April 1, 2006 in a single payment of
principal,and on which date any and all Obligations relating to the Term Loan shall also be fully due and payable, subject, however, to acceleration as otherwise set forth in this Agreement. Borrower shall, however, pay interest on the outstanding
principal balance of the Term Loan on a monthly basis in accordance herewith. Further, it is understood that the Term Loan may not be prepaid by Borrower until the Term Loan Prepayment Conditions (as such term is defined in Section 13.1 of the Loan
Agreement) are satisfied, and at such time, Borrower shall be permitted, at its option, to prepay, in part or in full, the Term Loan.
		
	 Letter of Credit Sublimit
 (Section 2.1.2):
	  	$1,000,000.
		
		  	Bank will issue or have issued Letters of Credit for Borrower’s account not exceeding the limitations relating thereto as set forth above in the then applicable Credit Limit provisions
in force and, in any event, the aggregate amount thereof shall not be greater than the Letter of Credit Sublimit set forth above. Further, and without limitation of the foregoing, the face amount of outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit) may not exceed the Letter of Credit Sublimit set forth above. In addition, Borrower shall pay to Bank all standard bank fees and costs in connection with the issuance and maintaining of Letters of Credit, Including
the payment of fees equal to 1.25% per annum of the face amount of any and all Letter of Credit.

  

 - 3 - 

			
	2. INTEREST.
		
	     Interest Rate 
     (Section 2.3(a)):
	 	For Revolving Loans and all related Obligations (other than Non-Formula Loans): A rate equal to the “Prime Rate” in effect from time to time, plus 1.5% per annum,
provided that while the Asset Based Terms are in effect, the interest rate shall be a rate up to the Prime Rate plus 2.50% per annum, as Bank shall determine.
		
		 	For Non-Formula Loans Only and Related Obligations: A rate equal to the “Prime Rate” in effect from time to time, plus 2.00% per annum.
		
		 	For the Term Loan and all related Obligations: A rate equal to the “Prime Rate” in effect from time to time. 
		
	4. FEES (Section 2.4(a)):	 	
		
	    Facility Fee:	 	$26,000, payable concurrently herewith, provided that at such time that the Asset Based Terms first come into effect hereunder, Borrower shall pay to Bank an additional facility fee of
$30,500 concurrently therewith.
		
	    Collateral Handling Fee:	 	During each month or portion thereof that the Asset Based Terms are in effect, Borrower shall pay Bank a collateral handling fee in an amount equal to $1,000 per month.
		
	    Unused Line Fee:	 	Borrower shall pay to Bank quarterly an unused line fee equal to the rate of one-quarter of one percentage point (.25%) per annum multiplied by the amount by which the Revolving Line Credit
Amount exceeds the average daily principal balance of the outstanding Revolving Loans during the immediately preceding calendar quarter (or part thereof) while this Agreement is in effect and for so long thereafter as any of the Obligations are
outstanding, which fee shall be payable on the 15th day following the end of each calendar quarter, provided
that when the Asset Based Terms are in effect the foregoing percentage shall be deemed increased to one-half of one percentage point (.50%) per annum and such fee shall thereafter be payable monthly in arrears rather than on a quarterly
basis.

  

 - 4 - 

			
	     Termination;
     Termination Fee:
	 	Borrower shall have the right to terminate the credit facility hereunder prior to the Maturity Date, effective three Business Days after written notice of termination is given to Bank. Borrower
has the option to repay either the Term Loan facility (at such time that the Term Loan Prepayment Conditions are satisfied) or the Revolving Advance facility or both facilities in full regardless of whether the Term Loan Prepayment Conditions are
then satisfied.
		
		 	(A) If the Term Loan Prepayment Conditions are satisfied, Borrower may repay the Term Loan facility, and the Obligations relating thereto may be repaid in full or in part on any effective date
of termination and no Termination Fee (as defined below) is payable if that is the only facility being repaid at such time.
		
		 	(B) If the Borrower repays the Revolving Advance facility (whether on its own or in conjunction with a repayment of Term Loan), then all Obligations relating thereto must be paid in full on the
effective date of termination and the Termination Fee (as defined below) is due and payable.
		
		 	(C) If the Term Loan Prepayment Conditions are not satisfied, Borrower may nevertheless repay the Term Loan if it is repaid in full and if the Revolving Advance facility is being repaid in full
at such time as well. The Termination Fee is due and payable in connection therewith.
		
		 	(D) Further, the Termination Fee is also fully due and payable if the credit facility under this Agreement is terminated by Bank upon an Event of Default prior to the Maturity
Date.
		
		 	(E) As used herein “Termination Fee” means an amount equal to one percent (1.00%) of the Revolving Line Credit Amount.
		
	4. MATURITY DATE	 	
	    (Section 13.1):	 	With respect to Revolving Advances: Three years from the date hereof with respect to Revolving Advances, provided that Non-Formula Advances shall be due and payable in
accordance with the terms and provisions of the applicable Credit Limit section in effect from time to time.
		
		 	With respect to the Term Loan: Three years from the date hereof.

  

 - 5 - 

			
	5. FINANCIAL COVENANTS
	    (Section 6.7):	  	Borrower, on a consolidated basis, shall comply with each of the following covenants at all times during the term of this Agreement, except as otherwise specifically stated
below:
		
	 5.1 Asset Based Terms
       Not In Effect
	  	During all periods in which the Asset Based Terms are not in effect, Borrower shall comply with the following financial covenants at all times during the term of this Agreement and, at the
request of Bank from time to time, Borrower shall provide evidence of compliance therewith. Unless otherwise set forth herein or as may be determined by Bank, measurement of compliance with the following will take place on a month-end
basis.
		
	      Quick Ratio:	  	Borrower shall maintain, as of the end of each month, a ratio of (with a breach of the following covenant addressed by the provisions of Section 6.3 of this Schedule):
		
		  	(i) Quick Assets,
		
		  	                    TO
		
		  	(ii) the total of current liabilities, plus outstanding long term loans hereunder not specifically secured by dedicated cash collateral held at Bank, plus outstanding Letters of Credit hereunder
and less the amount of Subordinated Debt that matures after the last Maturity Date applicable to any of the Obligations hereunder,
		
		  	of not less than 1.25 to 1.
		
	      EBITDA	  	Borrower not incur EBITDA in an amount the reflects a cumulative loss greater than (A) $1,250,000 for the three month period ending June 30, 2003, (B) $1,500,000 for the six month period ending
September 30, 2003, (C) $1,750,000 for the nine month period ending December 31, 2003 and (D) such amounts for succeeding periods as are established by Bank in its good faith business judgment based on the Additional Projections (and with a breach
of this financial covenant addressed in Section 7.4 of this Schedule).
		
	 5.2 Asset Based Terms
       In Effect.
	  	During all periods in which the Asset Based Terms are in effect, Borrower shall comply with the following financial covenant at all times during the term of this Agreement and, at the request of
Bank from time to time, Borrower shall provide evidence of compliance therewith.

  

 - 6 - 

			
	       Minimum Tangible
       Net Worth:
	  	Borrower shall maintain a Tangible Net Worth of not less than $7,000,000 for the period ending March 31, 2003, $6,500,000 for the periods ending June 30, 2003 and September 30,
2003, $6,000,000 for the period ending December 31, 2003 and such amounts for succeeding periods as are established by Bank in its good faith business judgment based on the Additional Projections.
		
	5.3 Definitions.	  	For purposes of this Agreement, the following terms shall have the following meanings (for additional terms, see Section 13.1 of the Loan Agreement):
		
		  	 “Additional Projections” shall mean those certain annual financial projections of the Borrower that Borrower is to deliver to Bank no
later than November 30 of each year with respect to the projected financial condition of the Borrower for following year during the term of this Agreement and in such form and containing such items as the Bank shall determine are appropriate or
needed by Bank in order to establish financial covenants for such projected year, and with the further understanding that such projections, individually and in their totality, must also otherwise be acceptable to Bank in its discretion.

 
 “Current assets”, “current liabilities” and “liabilities” shall have
the meaning ascribed thereto by GAAP.
  
 “EBITDA” shall mean the net income of
Borrower before interest, taxes, depreciation and other non-cash amortization expenses and other non-cash expenses of Borrower.
  
 “Quick Assets” is, on any date, the Borrower’s consolidated, unrestricted cash held at or through Bank, cash equivalents held at or through Bank together
with Eligible Accounts.

 6. ASSET BASED TERMS 
  

	6.1	“Asset Based Terms”. As used herein, “Asset Based Terms” means the terms set forth on Exhibit E to the Loan Agreement. Terms of this Agreement without the
Asset Based Terms are referred to as the “Non-Asset Based Terms”. 

  

	6.2	Voluntary Conversion to Asset Based Terms. In the event the Borrower wishes to have the Asset Based Terms in effect, Borrower may do so by giving the Bank 30 days prior
written notice thereof, in order to permit the Bank to make such reviews and audits as it shall deem appropriate. 

  

	6.3	Quick Ratio Financial Covenant Breach; Event of Default. Without limiting any of the other terms or provisions hereof, the breach of the Quick Ratio financial covenant set
forth in Section 5.1 on its own does not constitute an Event of Default, but in the event there is a breach of such financial covenant or if an Event of Default does arise hereunder, the Asset Based Terms shall be deemed immediately effective
upon written notice from the Bank to the Borrower, provided that if there fails to arise a successful conversion to the Asset Based Terms that arises from any action or inaction of the Borrower within 15 days of a breach of the Quick Ratio financial
covenant, then such an occurrence shall constitute an Event of Default hereunder. 

  

 - 7 - 

 7. ADDITIONAL TERMS AND PROVISIONS. 
 7.1 Additional Conditions Precedent. Without limitation of the conditions precedent to the effectiveness of this Agreement, the following shall occur, to the satisfaction of Bank, prior to this Agreement being
deemed effective and any loans or other extensions of credit made hereunder: 
 (A) Borrower shall have received cash proceeds of the issuance of the Series A
Transaction in the amount of not less than $13,000,000 and shall provide evidence of the same to Bank which is satisfactory to Bank and which overall transaction is satisfactory to Bank; 
 (B) The consummation of transactions pertaining to all intercompany obligations outstanding by and between Borrower and Data Systems & Software, Inc. (the “Parent”), including those in the
approximate amount of $8,420,000, having been converted to an equity interest or capital contribution rather than debt and, in any event, in form and substance acceptable to Bank; 
 (C) Parent shall execute and deliver to Bank a third party pledge agreement pledging cash in the amount of $1,500,000 securing Borrower’s Obligations hereunder consisting of the Term Loan and related items, in
form and substance acceptable to Bank and in the aggregate amount of the Term Loan and such third party pledge agreement shall remain in full force and effect while any Term Loan Obligations remain outstanding; 
 7.2 Collateral Audit. Within 30 days of the date hereof, Bank shall complete an audit of the Collateral, which shall have results acceptable to Bank in its
discretion. 
 7.3 Inventory Appraisal. Within 60 days of the date hereof, an appraisal of the inventory of the Borrower, conducted by an appraiser
acceptable to Bank, shall be completed and which resulting appraisal shall be acceptable to Bank in its discretion (collectively referred to herein as the “Appraisal Condition”). 
 7.4 Breach of EBITDA Financial Covenant; Modification to Non-Formula Loans. If Borrower fails to comply with the EBITDA financial covenant for any applicable
period during the term hereof as set forth in Section 5.1 of this Schedule (an “EBITDA Breach”), then (x) no further Non-Formula Loans shall be made hereunder, (y) all then outstanding Non-Formula Loans shall be
converted to Loans under clause (B)(1) of the Credit Limit section and all then outstanding Letters of Credit shall be deemed to decrease Loan availability thereunder and (z) if there is insufficient Loan availability to accommodate the actions
described in clause (y) then Borrower shall within five (5) days of the EBITDA Breach provide cash collateral to Bank for any shortfall in availability regarding Loans or Letters of Credit in the form of a dedicated and restricted
certificate of deposit account at Bank and Borrower shall within such five day period sign Bank’s standard cash pledge agreement in connection therewith. The failure to take any of the foregoing actions shall constitute an Event of Default
hereunder, but until such five day period has passed such the EBITDA Breach on its own does not constitute an Event of Default hereunder. 
  

 - 8 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Schedule as of the date first above written.

  

							
	Borrower:	  	Bank:
		
	COMVERGE TECHNOLOGIES, INC.	  	SILICON VALLEY BANK
				
	By	 	 /s/ Wayne Wren
	  	By	 	 /s/ Shiela Colson

		 	President or Vice President	  	Title	 	VP
				
	By	 	 /s/ Deborah L. Nygren
	  		 	
		 	Secretary or Ass’t Secretary	  		 	

  

 - 9 - 

 EXHIBIT A  
 Collateral 
 “Collateral” means of all of Borrower’s right, title and interest
in and to the following whether owned now or hereafter acquired or arising, and wherever located: all Accounts; all Inventory; all Equipment; all Deposit Accounts; all General Intangibles (including without limitation all Intellectual Property); all
Investment Property; all Other Property; and any and all claims, rights and interests in any of the foregoing, and all guaranties and security for any of the foregoing, and all substitutions and replacements for, additions, accessions, attachments,
accessories, and improvements to, and proceeds (including proceeds of any insurance policies, proceeds of proceeds and claims against third parties) of, all of the foregoing, and all Borrower’s books relating to any of the foregoing.

 As used in this Agreement and in this Exhibit, the following terms have the following meanings: 
 “Accounts” means all present and future “accounts” as defined in the Code in effect on the date hereof with such additions to
such term as may hereafter be made, and includes without limitation all accounts receivable and other sums owing to Borrower. 
 “Deposit Accounts” means all present and future “deposit accounts” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all
general and special bank accounts, demand accounts, checking accounts, savings accounts and certificates of deposit, whether maintained with Bank or other institutions. 
 “Equipment” means all present and future “equipment” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without
limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “General Intangibles” means all present and future “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without
limitation all Intellectual Property, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income tax refunds, security and other
deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and
business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Intellectual Property” means
all present and future (a) copyrights, copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, (b) trade secret
rights, including all rights to unpatented inventions and know how, and confidential information; (c) mask work or similar rights available for the protection of semiconductor chips; (d) patents, patent applications and like protections
including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same; (e) trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are
registered, and all applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by any such trademarks; (f) computer software and computer
software products; (g) designs and design rights; (h) technology; (i) all claims for damages by way of past, present and future infringement of any of the rights included above; and (j) all licenses or other rights to use any
property or rights of a type described above. 

 “Inventory” means all present and future “inventory” as defined in the Code in
effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including
without limitation such inventory as is out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment Property” means all present and future investment property, securities, stocks, bonds, debentures, debt securities,
partnership interests, limited liability company interests, options, security entitlements, securities accounts, commodity contracts, commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, and all
other securities of every kind, whether certificated or uncertificated. 
 “Other Property” means (i) the following as
defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and all rights relating thereto: all present and future “commercial tort claims”, “documents”, “instruments”,
“promissory notes”, “chattel paper’, “letters of credit”, “letter-of-credit rights”, “fixtures”, “farm products” and “money”; and (ii) all other goods and personal property
of every kind, tangible and intangible, whether or not governed by the Code. 
  

 2 

 EXHIBIT B 
 LOAN PAYMENT/ADVANCE REQUEST FORM 
 DEADLINE FOR SAME DAY PROCESSING IS 12:00 P.S.T.

  

			
	Fax To:                     	  	Date:                     

  ̈ LOAN PAYMENT: 
 Comverge, Inc. (Borrower) 
  

			
	From Account #
                            	  	To Account #
                            
	                    (Deposit Account #)	  	(Loan Account #)

 Principal
$             and/or Interest $                     
 All Borrower’s representation and warranties in the Loan and Security Agreement are true, correct and complete in all material respects to on the date of the
telephone transfer request for and advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of the date: 
  

			
	Authorized Signature:
                                	  	Phone Number:                     

  ̈ LOAN ADVANCE: 
 Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an
outgoing wire. 
  

			
	 From Account #
                            
	  	To Account #
                            
	                     (Loan Account
#)
	  	(Deposit Account #)

 Amount of Advance $
                     
 All Borrower’s
representation and warranties in the Loan and Security Agreement are true, correct and complete in all material respects to on the date of the telephone transfer request for and advance, but those representations and warranties expressly referring
to another date shall be true, correct and complete in all material respects as of the date: 
  

			
	 Authorized Signature:
                                
	  	Phone Number:                     

 OUTGOING WIRE REQUEST 
 Complete only if all or a portion of funds from the loan advance above are to be wired. 
 Deadline for same
day processing is 12:00 p.m., P.S.T. 
  

			
	Beneficiary Name:                     	  	Amount of Wire: $             
		
	Beneficiary Bank:                     	  	Account Number:             
		
	City and Sate:                     	  	
		
	Beneficiary Bank Transit (ABA) #             	  	
		
	Beneficiary Bank Code (Swift, Sort, Chip, etc.):             	  	
	(For International Wire Only)	  	
		
	Intermediary Bank:                     	  	Transit (ABA) #:                     

			
		
	For Further Credit to:	 	  

			
		
	Special Instruction:	 	  

 By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in
accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us). 
  

									
	Authorized Signature:	 	  
	  		  	2nd Signature (If Required): 	  	  

									
					
	Print Name/Title:	 	  
	  		  	Print Name/Title:	  	  

							
				
	Telephone #	 	  
	  	Telephone #	  	  

  

 2 

 EXHIBIT C 
 BORROWING BASE CERTIFICATE 
  

					
	Borrower Comverge, Inc.	  	Bank:	  	 Silicon Valley Bank
 3003 Tasman Drive
 Santa Clara, CA 95054

	 Commitment Amount: $5,000,000
	  		  	

  

					
	 ACCOUNTS RECEIVABLE
	  		  	
			
	 1. Accounts Receivable Book Value as of
                    
	  		  	$                    
	 2. Additions (please explain on reverse
	  		  	$                    
	 3. TOTAL ACCOUNTS RECEIVABLE
	  		  	$                    
			
	 ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
	  		  	
			
	 4. Amounts over 90 days due
	  	$                    	  	
	 5. Balance of 50% over 90 day accounts
	  	$                    	  	
	 6. Credit balances over 90 days
	  	$                    	  	
	 7. Concentration Limits*
	  	$                    	  	
	 8. Foreign Accounts
	  	$                    	  	
	 9. Governmental Accounts
	  	$                    	  	
	 10. Contra Accounts
	  	$                    	  	
	 11. Promotion or Demo Accounts
	  	$                    	  	
	 12. Intercompany/Employee Accounts
	  	$                    	  	
	 13. Other (please explain on reverse)
	  	$                    	  	
	 14. TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	  		  	$                    
	 15. Eligible Accounts (#3 minus #14)
	  		  	$                    
	 16. LOAN VALUE OF ACCOUNTS (80% of #15)
	  		  	$                    
			
	 INVENTORY
	  		  	
			
	 17. 25% of Inventory Value (lower of cost or market) as of
	  		  	$                    
	 18. 80% of liquidation value of Eligible Inventory
	  		  	$                    
	 19. 25% of outstanding Eligible Accounts
	  		  	$                    
	 20. Lower of 17, 18, 19 or $500K
	  		  	$                    
			
	 BALANCES
	  		  	
			
	 21. Maximum Loan Amount
	  	$                    	  	
	 22. Applicable Non-Formula Credit Extensions [lesser of $700K or $1.5MM minus LCs permitted
    which are available
through such time as set forth the applicable Credit Limit section]
	  	$                    	  	
	 23. Total Funds Available [Lesser of #21 or (#16 + #20 + #22)]
	  	$                    	  	
	 24. Present balance owing on Line of Credit
	  	$                    	  	
	     [Outstanding under Sublimits (LC), when applicable after 18 months from original loan date]
	  	$                    	  	
	 25. RESERVE POSITION (#23 minus #24 and #25)
	  		  	$                    

  

 35 

 The undersigned represents and warrants that this is true, complete and correct, and that the information in this
Borrowing Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank. 
  

	
	COMMENTS:
	
	Comverge, Inc.
	
	By:
                                        
                                    
	Title

  

	
	     BANK USE ONLY

	
	Rec'd By:                     
	                Auth. Signer
	Date:                     
	Verified:                     
	                Auth. Signer
	Date:                     

  

 C-2 

 EXHIBIT D  
 COMPLIANCE CERTIFICATE 
  

	TO:	SILICON VALLEY BANK 

	    	3003 Tasman Drive 

	    	Santa Clara, CA 95054 

 FROM: COMVERGE, INC. 
 The undersigned authorized officer of COMVERGE, INC. (“Borrower”) certifies that under the terms and conditions of the Loan and Security
Agreement between Borrower and Bank (the “Agreement’), (i) Borrower is in complete compliance for the period ending              with
             all required covenants except as noted below and (ii) all representations and warranties in the Agreement are true and correct in all material respects on this date.
Attached are the required documents supporting the certification. The Officer certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one period to the next except as explained
in an accompanying letter or footnotes. The Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined
not just at the date this certificate is delivered. 
 Please indicate compliance status by circling Yes/No under “Complies”
column. 
  

							
	 Reporting Covenant
	  	 Required
	  	Complies
				
	Monthly financial statements + CC	  	Monthly within 30 days	  	Yes	  	No
				
	Annual (Audited)	  	FYE within 90 days	  	Yes	  	No
				
	A/R & A/P Agings	  	Monthly w/i 20* days	  	Yes	  	No
				
	A/R Audit	  	Initial and Semi-Annual **	  	Yes	  	No
				
		  	** and quarterly when Asset Based Terms are in effect	  		  	
				
	Borrowing Base Certificate	  	Monthly w/i 20* days	  	Yes	  	No
				
		  	* 15 days when Asset Based Terms are in effect	  		  	
				
	Appraisal Re: Inventory	  	Initial and Annually (and semi-annually when Asset Based Terms are in effect)	  	Yes	  	No
				
	When Asset Based Terms are in effect— weekly transactions reports and schedules of collections	  	Weekly	  	Yes	  	No
				
	When Asset Based Terms are in effect— monthly reconciliations of A/R agings, transaction reports and general ledger	  	Monthly within 15 days	  	Yes	  	No

							
	When Asset Based Terms are in effect—inventory reports	  	Monthly within 15 days	  	Yes	  	No
	When Asset Based Terms are in effect—budgets of the Borrower	  	30 days prior to the onset of the new fiscal year	  		  	

  

									
	 Financial Covenant
	  	 Required
	  	 Actual
	  	Complies
	When Asset Based Terms are not in effect, Maintain at all times: Minimum Quick Ratio	  	1.25:1.00	  	:1.00	  	Yes	  	No
					
	When Asset Based Terms are not in effect, Maintain at all times: Cumulative EBITDA	  	3 months ending 6/30/03 -($1,250,000)	  	_____________	  	Yes	  	No
	  	6 months ending 9/30/03 -($1,500,000)	  	_____________	  	Yes	  	No
		  	9 months ending 12/31/03 -($1,750,000)	  	_____________	  	Yes	  	No
		  	[additional amounts to be determined]	  	_____________	  	Yes	  	No
					
	When Asset Based Terms are in effect, Maintain at all times: Minimum Tangible Net Worth	  	$7MM for 3/31/03 $6.5MM for 6/10/03 and 9/30/03 $6MM for 12/31/03	  	_____________	  	Yes	  	No

 Have there been updates to Borrower’s intellectual property? 
 Yes /No Borrower only has deposit accounts located at the following institutions:
                                        

 Comments Regarding Exceptions: See Attached. 
  

									
	Sincerely,	 		 	BANK USE ONLY
				
	COMVERGE, INC.	 		 	 Rec’d By:
	 	  

		 		 		 	Auth. Signer
		 		 	 Date:
	 	  

	  
	 		 		 	
	Signature	 		 	 Verified:
	 	  

		 		 		 	Auth. Signer
				
	  
	 		 	 Date:
	 	  

	Title	 		 		 	
				
	  
	 		 	 Compliance Status:
	 	Yes        No
	Date	 		 		 	

  

 C-2 

 EXHIBIT E 
 ASSET BASED TERMS 
 The following are the “Asset Based Terms”: 

(1) Schedules and Documents relating to Accounts. Borrower shall deliver to Bank transaction reports, Revolving Advance requests, schedules of
Accounts, and schedules of collections, all on Bank’s standard forms and in such frequency as Bank may determine, with a minimum weekly frequency and also at all times accompanying a request for a Loan; provided, however, that
Borrower’s failure to execute and deliver the same shall not affect or limit Bank’s security interest and other rights in all of Borrower’s Accounts. If requested by Bank, Borrower shall furnish Bank with copies (or, at Bank’s
request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such
Accounts, and Borrower warrants the genuineness of all of the foregoing. Borrower shall also furnish to Bank an aged accounts receivable trial balance in such form and at such intervals as Bank shall request. In addition, Borrower shall deliver to
Bank the originals of all instruments, chattel paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, immediately upon receipt thereof and in the same form as received, with all necessary
endorsements, all of which shall be with recourse. Borrower shall also provide Bank with copies of all credit memos from time to time on request by Bank. 
 (2) Collection of Accounts. Borrower shall hold all payments on, and proceeds of, Accounts and all other Collateral in trust for Bank, and Borrower shall immediately deliver all such payments and proceeds to
Bank in their original form, duly endorsed, to be applied to the Obligations in such order as Bank shall determine. Borrower agrees that it will not commingle such payments and proceeds with any of Borrower’s other funds or property, but will
hold such payments and proceeds separate and apart from such other funds and property and in an express trust for Bank. Bank may, in its discretion, require that all proceeds of Collateral be deposited by Borrower into a lockbox account, or such
other “blocked account” as Bank may specify, pursuant to a blocked account agreement in such form as Bank may specify. Bank or its designee may, at any time, notify Account Debtors that the Accounts have been assigned to Bank. Nothing in
this Exhibit limits the restrictions on Transfers of Collateral set forth elsewhere in this Agreement. 
 (3) Interest Computation. In
computing interest on the Obligations, all checks, wire transfers and other items of payment received by Bank (including proceeds of Accounts shall be deemed applied by Bank on account of the Obligations two Business Days after receipt by Bank of
immediately available funds, and, for purposes of the foregoing, any such funds received after 12:00 Noon on any day shall be deemed received on the next Business Day. Bank shall not, however, be required to credit Borrower’s account for the
amount of any item of payment which is unsatisfactory to Bank in its good faith business judgment, and Bank may charge Borrower’s loan account for the amount of any item of payment which is returned to Bank unpaid. 
 (4) Loan Requests. Without limiting the right of Bank to cease making Revolving Advances and other Credit Extensions on an Event of Default,
requests for Credit Extensions shall be in writing and shall be accompanied by a current Transaction Report on Bank’s standard form. 
 (5) Reserves. Without limiting the right of Bank to cease making Revolving Advances and other Credit Extensions on an Event of Default, Bank shall have the right, from time to time, to establish and deduct the following reserves from
the amount of Revolving Advances, Letters of Credit and other financial accommodations under the lending formula(s) provided in the Schedule: (a) reserves to reflect events, conditions, contingencies or risks which, as determined by Bank in
good faith, do or may affect adversely (i) the Collateral or any other property which is security for the Obligations or its value (including 

 without limitation any increase in delinquencies of Accounts), (ii) the assets, business or prospects of Borrower,
or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability, perfection and priority thereof); and (b) reserves to reflect Bank’s good faith belief that any collateral report or financial
information furnished by or on behalf of Borrower to Bank is or may have been incomplete, inaccurate or misleading in any material respect. 
 (6) Cure Periods. The cure periods set forth in the Loan Agreement shall be modified as follows: the cure period in Section 8.3 of the Loan Agreement shall be five Business Days rather than 30 days and there shall be no cure
period in Section 8.1 of the Loan Agreement. 
 (7) Audit of Collateral, Books and Records. Without limitation of the terms and
conditions set forth in the Loan Agreement regarding access to collateral and the Borrower’s books and records, at all reasonable times, and on one Business Day’s notice, Bank, or its agents, shall have the right to inspect the Collateral,
and the right to audit and copy Borrower’s books and records. Bank shall take reasonable steps to keep confidential all information obtained in any such inspection or audit, but Bank shall have the right to disclose any such information to its
auditors, regulatory agencies, and attorneys, and pursuant to any subpoena or other legal process. The foregoing inspections and audits shall be at Borrower’s expense and the charge therefor shall be $750 per person per day (or such higher
amount as shall represent Bank’s then current standard charge for the same), plus reasonable out-of-pocket expenses. 
 (8) Other
Reporting Requirements. Upon the effectiveness of these Asset Based Terms, Borrower shall supply the following financial statements and reports: 
  

	1.	Weekly transaction reports and schedules of collections, on Silicon’s standard form. 

  

	2.	Monthly accounts receivable agings, aged by invoice date, within fifteen (15) days after the end of each month. 

  

	3.	Monthly accounts payable agings, aged by invoice date, and outstanding or held check registers, if any, within fifteen (15) days after the end of each month.

  

	4	Monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports, and general ledger, within fifteen (15) days after the end of each month.

  

	5.	Monthly perpetual inventory reports for the Inventory valued on a first-in, first-out basis at the lower of cost or market (in accordance with GAAP) or such other inventory reports
as are requested by Silicon in its good faith business judgment, all within fifteen (15) days after the end of each month. 

  

	6.	Monthly unaudited financial statements, as soon as available, and in any event within thirty (30) days after the end of each month. 

  

	7.	Monthly Compliance Certificates, within thirty (30) days after the end of each month, in such form, as Silicon shall reasonably specify, signed by the Chief Financial Officer
of Borrower, certifying that as of the end of such month Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth
in this Agreement and such other information as Silicon shall reasonably request, including, without limitation, a statement that at the end of such month there were no held checks. 

  

	8.	Annual operating budgets (including income statements, balance sheets and cash flow statements, by month) for the upcoming fiscal year of Borrower within thirty (30) days prior
to the end of each fiscal year of Borrower. 

  

	9.	Commencing with the Borrower’s fiscal year ending December 31, 2003, as soon as available, but no later than ninety (90) days after the last day of Borrower’s
fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Bank.

 Silicon Valley Bank 
 Amendment to Loan Agreement 
 Borrower: Comverge, Inc. 
 Dated as of: September 10, 2003 
 THIS
AMENDMENT TO LOAN AGREEMENT is entered into between SILICON VALLEY BANK (“Bank”) and the borrower named above (the `Borrower”). The Parties agree to amend the Loan and Security Agreement between them, dated April
    , 2003, as amended or otherwise modified from time to time (the “Loan Agreement”), as follows, effective as of the date hereof. (Capitalized terms used but not defined in this Amendment, shall have the
meanings set forth in the Loan Agreement.). Reference is also made to the Schedule to the Loan Agreement dated April 7, 2003 by and between Borrower and Bank (the “Schedule”). 
 1. Cash Management Services. Borrower may use up to $150,000 for Bank’s cash management services, which may include merchant services, direct
deposit of payroll, business credit card, and check cashing services identified in various cash management services agreements related to such services (the “Cash Management Services”). The aggregate amounts utilized under the Cash
Management Services Sublimit will at all times reduce the amount otherwise available to be borrowed as Revolving Loans and new Cash Management Services may be extended only if the amount of such proposed new extension of such services would
otherwise be available for the making of a Revolving Loan in such amount. Any amounts Bank pays on behalf of Borrower or any amounts that are not paid by Borrower for any Cash Management Services will be treated as Revolving Loans of the type for
which there exists availability under the Loan Agreement and will accrue interest at the applicable rate therefor. The Credit Limit section of the Schedule is hereby deemed modified to accommodate the provisions set forth herein. 

			
	Silicon Valley Bank	 	Amendment to Loan Agreement

 2. Revised Section 2 of Schedule. Section 2 of the Schedule that now reads as follows:

 “2. INTEREST. 
 Interest Rate (Section 2.3(a)): 
 For Revolving Loans and all related Obligations (other than Non-Formula Loans): A
rate equal to the “Prime Rate” in effect from time to time, plus 1.50% per annum, provided that while the Asset Based Terms are in effect, the interest rate shall be a rate up to the Prime Rate plus 2.50% per
annum, as Bank shall determine. 
 For Non-Formula Loans Only and Related Obligations: A rate equal to the “Prime Rate” in
effect from time to time, plus 2.00% per annum. 
 For the Term Loan and all related Obligations: A rate equal to the
“Prime Rate” in effect from time to time.” 
 IS HEREBY AMENDED IN ITS ENTIRETY TO READ AS FOLLOWS: 
 “2. INTEREST. 
 Interest Rate
 
 (Section 2.3(a)): 
 For Revolving Loans and all related Obligations (other than Non-Formula Loans): A rate equal to the “Prime Rate” in effect from time to time, plus the Applicable Revolving Margin (as defined below) per annum,
provided that while the Asset Based Terms are in effect, the interest rate shall be equal to the Prime Rate in effect from time to time plus 2.50% per annum. 
 For Non-Formula Loans Only and Related Obligations: A rate equal to the “Prime Rate” in effect from time to time plus the Applicable
Non-Formula Margin (as defined below) per annum. 
 For the Term Loan and all related Obligations: A rate equal to the
“Prime Rate” in effect from time to time per annum. 
 As used herein the term “Applicable Revolving
Margin” shall mean 2.00%, provided if the Borrower consummates an Equity Financing after the date hereof from which Borrower receives at least $4,000,000 (but less than $8,000,000) then Applicable Revolving Margin shall mean 1.75%,
provided, further, if the Borrower consummates an Equity Financing after the date hereof from which Borrower receives at least $8,000,000 then Applicable Revolving Margin shall mean 1.50%. The foregoing reduction in such margin amount
shall be effective on and after such time that reasonable evidence of Borrower’s satisfaction with the applicable conditions has been supplied to and accepted by Bank and shall only apply on a prospective basis thereafter. 
  

 -2- 

			
	Silicon Valley Bank	 	Amendment to Loan Agreement

 As used herein the term “Applicable Non-Formula Margin” shall mean 2.75%,
provided if the Borrower consummates an Equity Financing after the date hereof from which Borrower receives at least $4,000,000 (but less than $8,000,000) then Applicable Non-Formula Margin shall mean 2.50%, provided, further,
if the Borrower consummates an Equity Financing after the date hereof from which Borrower receives at least $8,000,000 then Applicable Non-Formula Margin shall mean 2.25%. The foregoing reduction in such margin amount shall be effective on and after
such time that reasonable evidence of Borrower’s satisfaction with the applicable conditions has been supplied to and accepted by Bank and shall only apply on a prospective basis thereafter. 
 As used herein the term “Equity Financing” shall mean an equity financing transaction of Borrower relating to Borrower’s Series A
Preferred Stock or Series A-1 Preferred Stock.“ 
 3. Elimination of the EBITDA Covenant and Related Provision. The EBITDA
financial covenant set forth in Section 5 of the Schedule shall be deemed eliminated and no longer applicable to the Borrower at such time, after the date hereof, that Borrower shall have consummated an equity financing transaction relating to
Borrower’s Series A Preferred Stock or Series A-1 Preferred Stock from which Borrower receives at least $1,000,000 in net proceeds. The foregoing modification shall be effective on and after such time that reasonable evidence of Borrower’s
satisfaction with the foregoing has been supplied to and accepted by Bank. Further, upon the elimination of the EBITDA financial covenant as aforesaid, Section 7.4 of the Schedule shall thereupon also be deemed terminated and of no further
force or effect. 
 4. Modified Definition. The defined term “Eligible Inventory” as set forth in the Loan Agreement is
hereby amended to read as follows: “Eligible Inventory” shall mean such items of Inventory of Borrower consisting of finished goods and raw materials as are acceptable to Bank in its discretion for financing purposes hereunder. 

5. Confirmation of Consent. Bank hereby confirms that the Equity Financing transactions referred to in the revised interest rate provision set
forth Section 2 hereof and as additionally referred to in Section 3 hereof shall be considered part of the collective Series A Transaction, which is a permitted transaction, on a collective basis, under the Loan Agreement. 
 6. Fee. Borrower shall pay to Silicon a fee of $7,500 in connection herewith, which shall be in addition to interest and all other amount payable
hereunder, and which shall not be refundable. 
 7. Representations True. Borrower represents and warrants to Bank that all
representations and warranties set forth in the Loan Agreement, as amended hereby, are true and correct. 
  

 -3- 

			
	Silicon Valley Bank	 	Amendment to Loan Agreement

 8. General Provisions. This Amendment, the Loan Agreement, any prior written amendments to
the Loan Agreement signed by Bank and the Borrower, and the other written documents and agreements between Bank and the Borrower set forth in full all of the representations and agreements of the parties with respect to the subject matter hereof and
supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof. Except as herein expressly amended, all of the terms and provisions of the Loan Agreement, and all other
documents and agreements between Bank and the Borrower shall continue in full force and effect and the same are hereby ratified and confirmed. This Agreement and Consent may be executed in any number of counterparts, which when taken together shall
constitute one and the same agreement. 
 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date set forth at the
beginning of this Amendment. 
  

							
	Borrower:	 	Silicon:
		
	Comverge, Inc.	 	Silicon Valley Bank
				
	By	  	 /s/ Wayne Wren
	 	By	 	 /s/ Sheila Colson

	Title	  	EVP	 	Title	 	Vice President

  

 -4- 

 LOAN MODIFICATION AGREEMENT 
 This Loan Modification Agreement is entered into as of May 19, 2004, by and between Comverge, Inc. (the “Borrower”) and Silicon Valley Bank (“Bank”). 
 1. DESCRIPTION OF EXISTING OBLIGATIONS: Among other Obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other
documents, a Loan and Security Agreement, dated April 7, 2003, as may be amended from time to time (the “Loan Agreement”). The Loan Agreement provides for, among other things, a Revolving Line Credit Amount in the original principal
amount of Five Million Dollars ($5,000,000). Defined terms used but not otherwise defined herein shall have the same meanings as set forth in the Loan Agreement. 
 Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as the “Obligations,” 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement. 
 Hereinafter, the above-described security documents and guaranties, together with all other documents securing repayment of the Obligations shall be referred to as the
“Security Documents”. Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modification(s) to Loan Agreement. 

  

	 	1.	Item “(ii)” under part °(B)” of the portion related to when the Asset Based Terms are not in effect in Section 1 “Credit Limit” in Schedule 1 to
the Loan Agreement is hereby amended to read as follows: 

 (ii) (X) lap to the lesser of: (w) 25% of the value
of the Eligible Inventory based on the lower of cost or market value; (x) on and after the date of the satisfaction of the Appraisal Condition, 80% of the net orderly liquidation value of Eligible Inventory, based on an appraisal
acceptable to Bank in its discretion; (y) $500,000; or (z) 25% of the aggregate amount of Eligible Accounts outstanding from time to time; provided that until an appraisal is completed, Loans under this clause (ii) will be the
lesser of (w), (y) or (z); minus (Y) the outstanding aggregate amount of Letters of Credit in excess of $1,000,000 hereunder extended pursuant to the terms and conditions hereof; PLUS 
  

	 	2.	The aggregate amount of the Letter of Credit Sublimit as referenced in Schedule 1 to the Loan Agreement is hereby amended from $1,000,000 to $2,000,000.

 4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

 5. NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor signing below) agrees that, as of the date hereof, it has no defenses
against paying any of the Obligations. 
 6. CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing below) understands and agrees
that in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the
terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future
modifications to the 

 Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It
is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is expressly released by Bank in writing. Unless expressly released herein, no maker, endorser, or guarantor
will be released by virtue of this Loan Modification Agreement. The terms of this paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan modification agreements. 
 This Loan Modification Agreement is executed as of the date first written above. 
  

							
	BORROWER:	 	BANK:
		
	COMVERGE, INC.	 	SILICON VALLEY BANK
				
	By:	  	 /s/ Wayne Wren
	 	By:	 	 /s/ Sheila Colson

	Name:	  	Wayne Wren	 	Name:	 	Sheila Colson
	Title	  	EVP	 	Title	 	Vice President

 The undersigned hereby consent to the modifications to the Obligations pursuant
to this Loan Modification Agreement. 
  

			
	COMVERGE ENERGY MANAGEMENT, INC.
		
	By:	 	 /s/ Wayne Wren

	Name:	 	 Wayne Wren

	Title:	 	 VP

	
	COMVERGE ENERGY PARTNERS, LTD.
		
	By:	 	 /s/ Wayne Wren

	Name:	 	 Wayne Wren

	Title:	 	 VP

	
	6D COMVERGE, INC.
		
	By:	 	 /s/ Wayne Wren

	Name:	 	 Wayne Wren

	Title:	 	 VP

 LOAN MODIFICATION AGREEMENT 
 This Loan Modification Agreement is entered into as of September 24, 2004, by and between Comverge, Inc. (the “Borrower”) and Silicon Valley Bank (‘Bank”). 
 1. DESCRIPTION OF EXISTING OBLIGATIONS: Among other Obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other
documents, a Loan and Security Agreement, dated April 7, 2003, as may be amended from time to time (the “Loan Agreement”). The Loan Agreement provides for, among other things, a Revolving Line Credit Amount in the original principal
amount of Five Million Dollars ($5,000,000). Defined terms used but not otherwise defined herein shall have the same meanings as set forth in the Loan Agreement. 
 Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as the “Obligations.” 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement. Additionally, the Obligations are
guaranteed by 6D Comverge, Inc., Comverge Energy Management, Inc., and Comverge Energy Partners, Ltd. (each, the “Guarantor”) pursuant to 3 Continuing Guaranty agreements (each, the “Guaranty”). Furthermore, the repayment of the
obligations under each Guaranty is secured by a Security Agreement by and between the respective Guarantor and Bank (each, a “Security Agreement’). 
 Hereinafter, the above-described security documents and guaranties, together with all other documents securing repayment of the Obligations shall be referred to as the “Security Documents”. Hereinafter, the Security Documents,
together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3.
DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modification(s) to Loan Agreement. 

  

	 	1.	Part “(A)” of the portion related to when the Asset Based Terms are not in effect in Section 1 “Credit Limit” in Schedule 1 to the Loan Agreement is
hereby amended to read as follows: 

 (A) $7,000,000 at any one time outstanding (the “Revolving Line Credit
Amount’); or 
  

	 	2.	Part “(A)” of the portion related to when the Asset Based Terms are in effect in Section 1 “Credit Limit” in Schedule 1 to the Loan Agreement is
hereby amended to read as follows: 

 (A) $7,000,000 at any one time outstanding (the “Revolving Line Credit
Amount’); or 
  

	 	3.	The aggregate amount of the Letter of Credit Sublimit as referenced in Schedule 1 to the Loan Agreement is hereby amended from $2,000,000 to $3,000,000.

  

	 	4.	The Unused Line Fee as stated in Section 4 “Fees” in Schedule 1 to the Loan Agreement when the Asset Base Terms are not in effect is hereby increased from
0.250% per annum to 0.375% per annum. 

  

	 	5.	The first paragraph in Section 4 “Maturity Date” in Schedule 1 to the Loan Agreement is hereby amended to read as follows: 

 With respect to Revolving Advances: September 15, 2007, provided that Non-Formula Advances shall be due and payable in accordance with the
terms and provisions of the applicable Credit Limit section in effect from time to time. 

	 	6.	The first paragraph in Section 5.1 “Asset Based Terms Not in Effect” in Schedule 1 to the Loan Agreement is hereby amended to read as follows:

 During all periods in which the Asset Based Terms are not in effect (other than the months ending July 31,
2004, August 31, 2004 and September 30, 2004), Borrower shall comply with the following financial covenants at all times during the term of this Agreement and, at the request of Bank from time to time, Borrower shall provide evidence
of compliance therewith. Unless otherwise set forth herein or as may be determined by Bank, measurement of compliance with the following will take place on a month-end basis. 
 4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 
 5. NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor signing below) agrees that, as of the date hereof, it has no defenses against paying any of the Obligations. 
 6. PAYMENT OF LOAN FEE. Borrower shall pay Bank a fee in the amount of Twenty Five Thousand Dollars ($25,000) (“Loan Fee”) plus all out-of-pocket
expenses. 
 7. CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing below) understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless
the party is expressly released by Bank in writing. Unless expressly released herein, no maker, endorser, or guarantor will be released by virtue of this Loan Modification Agreement. The terms of this paragraph apply not only to this Loan
Modification Agreement, but also to all subsequent loan modification agreements. 
 8. CONDITIONS. The effectiveness of this Loan Modification
Agreement is conditioned upon payment of the Loan Fee and Borrower’s receipt of at least $10,000,000 in new equity on or prior to October 15, 2004. 
 This Loan Modification Agreement is executed as of the date first written above. 
  

							
	 BORROWER:
  
 COMVERGE, INC.
	 	 BANK:
  
 SILICON VALLEY BANK

				
	By:	 	 /s/ Wayne Wren
	 	By:	 	 s/ Sheila Colson

	Name:	 	Wayne Wren	 	Name:	 	Sheila Colson
	Title:	 	EVP	 	Title:	 	VP

 THE SIGNATURE BLOCK CONTINUES ON THE NEXT PAGE 

 The undersigned hereby consent to the modifications to the Obligations pursuant to this Loan Modification Agreement.

  

			
	COMVERGE ENERGY MANAGEMENT, INC.
		
	By:	 	 /s/ Wayne Wren

	Name:	 	 Wayne Wren

	Title:	 	 VP/Sec

	
	COMVERGE ENERGY PARTNERS, LTD.
		
	By:	 	 /s/ Wayne Wren

	Name:	 	 Wayne Wren

	Title:	 	 EVP/BP Comverge/wo

	
	6D COMVERGE, INC.
		
	By:	 	 /s/ Wayne Wren

	Name:	 	 Wayne Wren

	Title:	 	 VP/Sec

 FOURTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 THIS FOURTH AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this 25th day of October, 2005, by and between
Silicon Valley Bank (`Bank”) and Comverge, Inc., a Delaware corporation (“Borrower”) whose address is 4497 Park Drive, Norcross, Georgia 30093. 
 RECITALS 
 A. Bank and Borrower have entered into that certain Loan and
Security Agreement dated as of April 7, 2003, as amended by that certain Amendment to Loan Agreement by and between Bank and Borrower dated as of September 10, 2003, that certain Loan Modification Agreement by and between Bank and Borrower
dated as of May 19, 2004, and that certain Loan Modification Agreement by and between Bank and Borrower dated as of September 24, 2004 (as the same may from time to time be further amended, modified, supplemented or restated, the
“Loan Agreement”). 
 B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C. Borrower has requested that Bank amend the Loan Agreement to (i) modify the Quick Ratio formula, and (ii) make certain other
revisions to the Loan Agreement as more fully set forth herein. 
 D. Bank has agreed to so amend certain provisions of the Loan
Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT 
 NOW, THEREFORE, in
consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2. Amendments to Loan Agreement. 
 2.1 Unbilled Eligible Accounts. Notwithstanding the terms and conditions stated in Section 5.2 or in the definition of “Accounts”, Borrower, when determining the value of Eligible Accounts, may include Accounts which
are undisputed bona fide existing unconditional obligations of account debtors created by the sale, delivery, and acceptance of goods or the rendition of services in the ordinary course of Borrower’s business, but not yet invoiced by
Borrower to the account debtor. Such Accounts shall be subject to the parameters stated in the definition of “Eligible Accounts”. 

 2.2 Section 2 in the Schedule 1 to Loan and Security Agreement (Interest). Effective as of
the date of this Amendment, the first paragraph of Section 2 is amended in its entirety and replaced with the following: 
 For Revolving Loans and all related Obligations (other than Non-Formula Loans): A rate equal to the “Prime Rate” in effect from time to time, plus 2.00% per annum; provided that while the Asset Based Terms are in effect, the
interest rate shall be a rate up to the Prime Rate plus 2.75% per annum as Bank shall determine. 
 2.3 Section 5 in the
Schedule 1 to Loan and Security Agreement (Financial Covenants). Item “(ii)” under the “Quick Ratio” financial covenant is hereby amended to read as follows: 
 (ii) current liabilities plus outstanding long term Bank debt less deferred revenue. 
 3. Limitation of Amendments. 
 3.1
The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any
other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties,
covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 
 4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows: 
 4.1 Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true,
accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has
occurred and is continuing; 
 4.2 Borrower has the power and authority to execute and deliver this Amendment and to perform its
obligations under the Loan Agreement, as amended by this Amendment; 

 4.3 The organizational documents of Borrower delivered to Bank on the April 7, 2003 remain
true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 4.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
 4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license,
authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and 

4.7 This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’
rights. 
 5. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together
shall be deemed to constitute one and the same instrument. 
 6. Effectiveness. This Amendment shall be deemed effective upon
(a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment of an amendment fee in an amount equal to $15,000, and (c) Bank’s receipt of the Acknowledgment of Amendment and
Reaffirmation of Guaranty substantially in the form attached hereto as Schedule 1, Schedule 2 and Schedule 3, each duly executed and delivered by each Guarantor. 
 [Signature page follows.] 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

									
	 BANK
  
 Silicon Valley Bank
	 		 	 BORROWER
  
 Comverge, Inc.

					
	By:	 	 /s/ Sheila Colson
	 		 	By:	 	 /s/ Thomas W. Wren

	Name:	 	Sheila Colson	 		 	Name:	 	Thomas W. Wren
	Title:	 	Vice President	 		 	Title:	 	EVP

 FIFTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 THIS FIFTH AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this 9th day of January, 2006, by and between Silicon Valley Bank (`Bank”) and Comverge, Inc., a Delaware corporation (“Borrower”) whose
address is 4497 Park Drive, Norcross, Georgia 30093. 
 RECITALS 
 A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of April 7, 2003, as amended by that certain
Amendment to Loan Agreement by and between Bank and Borrower dated as of September 10, 2003, that certain Loan Modification Agreement by and between Bank and Borrower dated as of May 19, 2004, that certain Loan Modification Agreement by
and between Bank and Borrower dated as of September 24, 2004, and that certain Fourth Amendment to Loan and Security Agreement by and between Bank and Borrower dated October 25, 2005 (as the same may from time to time be further amended,
modified, supplemented or restated, the “Loan Agreement”). 
 B. Bank has extended credit to Borrower for the purposes
permitted in the Loan Agreement. 
 C. Borrower has requested that Bank amend the Loan Agreement to modify in part the definition of
“Eligible Accounts”. 
 D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in
accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the
foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2. Amendments to Loan Agreement. 
 2.1 Section 13 (Definitions). Items “(d)” and “(e)” under the definition of “Eligible Accounts” set forth in Section 13.1 are amended in their entirety and replaced with the following:

 (d) Accounts for an account debtor, including Affiliates, whose total obligations to Borrower exceed 25% of all Accounts,
except for Gulf Power 

 Company, PacificCorp/Utah Power, ISO New England, San Diego Gas & Electric (SDGE) and Ontario
Power Authority, for which the percentage for each account debtor may be 45%, for the amounts that exceed that percentage, unless Bank approves in writing; 
 (e) Accounts for which the account debtor does not have its principle place of business in the United States except for Ontario Power Authority, or, unless (i) approved by Bank in writing or (ii) supported
by foreign credit insurance or a letter of credit in form and substance acceptable to Bank, in each case as is acceptable to Bank in its sole discretion; 
 3. Limitation of Amendments. 
 3.1 The amendments set forth in Section 2, above, are
effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or
(b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection with and as part of the Loan Documents and all terns, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended,
are hereby ratified and confirmed and shall remain in full force and effect. 
 4. Representations and Warranties. To induce Bank to
enter into this Amendment, Borrower hereby represents and warrants to Bank as follows: 
 4.1 Immediately after giving effect to this
Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date,
in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 
 4.2
Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3 The organizational documents of Borrower delivered to Bank on April 7, 2003 remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full
force and effect; 
 4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations
under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 4.5 The execution and delivery by Borrower of
this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended 

 by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower,
(b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 
 4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public
body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and 
 4.7 This
Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 5. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 6. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party
hereto, and (b) Bank’s receipt of the Acknowledgment of Amendment and Reaffirmation of Guaranty substantially in the form attached hereto as Schedule 1, Schedule 2 and Schedule 3, each duly executed and delivered by each Guarantor.

 [Signature page follows.] 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

									
	 BANK
  
 Silicon Valley Bank
	 		 	 BORROWER
  
 Comverge, Inc.

					
	By:	 	 /s/ Sheila Colson
	 		 	By:	 	 /s/ Thomas W. Wren

	Name:	 	Sheila Colson	 		 	Name:	 	Thomas Wren
	Title:	 	Vice President	 		 	Title:	 	EVP

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]