Document:

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                                                                    EXHIBIT 10.3

                                     FORM OF

                               SECURITY AGREEMENT

                          (METRETEK TECHNOLOGIES, INC.)

         This Agreement, dated as of September 24, 2003, is made by and between
Metretek Technologies, Inc., a Delaware corporation (the "Corporate Guarantor"),
and Wells Fargo Business Credit, Inc., a Minnesota corporation (the "Secured
Party").

         Pursuant to a Credit and Security Agreement of even date herewith (as
the same may be amended, supplemented or restated from time to time, the "Credit
Agreement"), the Secured Party may extend credit accommodations to PowerSecure,
Inc., a Delaware corporation (the "Borrower").

         As a condition to extending credit to the Borrower, the Secured Party
has required the execution and delivery of the Corporate Guarantor's Guaranty of
even date herewith, guaranteeing the payment and performance of all obligations
of the Borrower arising under or pursuant to the Credit Agreement (the
"Guaranty").

         As a further condition to extending credit to the Borrower under the
Credit Agreement, the Secured Party has required the execution and delivery of
this Agreement by the Corporate Guarantor.

         ACCORDINGLY, in consideration of the mutual covenants contained in the
Credit Agreement and herein, the parties hereby agree as follows:

         1.       Definitions. All terms defined in the recitals hereto and the
Credit Agreement that are not otherwise defined herein shall have the meanings
given them in the recitals and the Credit Agreement. All terms defined in the
UCC and not otherwise defined herein have the meanings assigned to them in the
UCC. In addition, the following terms have the meanings set forth below or in
the referenced Section of this Agreement:

         "Accounts" means all of the Corporate Guarantor's accounts, as such
term is defined in the UCC, including each and every right of the Corporate
Guarantor to the payment of money, whether such right to payment now exists or
hereafter arises, whether such right to payment arises out of a sale, lease or
other disposition of goods or other property, out of a rendering of services,
out of a loan, out of the overpayment of taxes or other liabilities, or
otherwise arises under any contract or agreement, whether such right to payment
is created, generated or earned by the Corporate Guarantor or by some other
person who subsequently transfers such person's interest to the Corporate
Guarantor, whether such right to payment is or is not already earned by
performance, and howsoever such right to payment may be evidenced, together with
all other rights and interests (including all Liens) which the Corporate
Guarantor may at any time have by law or agreement against any account debtor or
other obligor obligated to make any such payment or against any property of such
account debtor or other obligor; all including but not

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limited to all present and future accounts, contract rights, loans and
obligations receivable, chattel papers, bonds, notes and other debt instruments,
tax refunds and rights to payment in the nature of general intangibles.

         "Collateral" means all of the Corporate Guarantor's Accounts, chattel
paper, deposit accounts, documents, Equipment, General Intangibles, goods,
instruments, Inventory, Investment Property, letter-of-credit rights, letters of
credit, all sums on deposit in any Collateral Account, and any items in any
Lockbox; together with (i) all substitutions and replacements for and products
of any of the foregoing; (ii) in the case of all goods, all accessions; (iii)
all accessories, attachments, parts, equipment and repairs now or hereafter
attached or affixed to or used in connection with any goods; (iv) all warehouse
receipts, bills of lading and other documents of title now or hereafter covering
such goods; (v) any money, or other assets of the Borrower that now or hereafter
come into the possession, custody, or control of the Lender; and (vi) proceeds
of any and all of the foregoing.

         "Equipment" means all of the Corporate Guarantor's equipment, as such
term is defined in the UCC, whether now owned or hereafter acquired, including
but not limited to all present and future machinery, vehicles, furniture,
fixtures, manufacturing equipment, shop equipment, office and recordkeeping
equipment, parts, tools, supplies, and including specifically the goods
described in any equipment schedule or list herewith or hereafter furnished to
the Lender by the Corporate Guarantor.

         "Event of Default" has the meaning given in Section 6.

         "General Intangibles" means all of the Corporate Guarantor's general
intangibles, as such term is defined in the UCC, whether now owned or hereafter
acquired, including all present and future Intellectual Property Rights,
customer or supplier lists and contracts, manuals, operating instructions,
permits, franchises, the right to use the Corporate Guarantor's name, and the
goodwill of the Corporate Guarantor's business.

         "Intellectual Property Rights" means all actual or prospective rights
arising in connection with any intellectual property or other proprietary
rights, including all rights arising in connection with copyrights, patents,
service marks, trade dress, trade secrets, trademarks, trade names or mask
works.

         "Inventory" means all of the Corporate Guarantor's inventory, as such
term is defined in the UCC, whether now owned or hereafter acquired, whether
consisting of whole goods, spare parts or components, supplies or materials,
whether acquired, held or furnished for sale, for lease or under service
contracts or for manufacture or processing, and wherever located.

         "Investment Property" means all of the Corporate Guarantor's investment
property, as such term is defined in the UCC, whether now owned or hereafter
acquired, including but not limited to all securities, security entitlements,
securities accounts, commodity contracts, commodity accounts, stocks, bonds,
mutual fund shares, money market shares and U.S. Government securities.

         "Lien" means any security interest, mortgage, deed of trust, pledge,
lien, charge, encumbrance, title retention agreement or analogous instrument or
device, including the interest of each lessor under any capitalized lease and
the interest of any bondsman under any payment

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or performance bond, in, of or on any assets or properties of a person, whether
now owned or hereafter acquired and whether arising by agreement or operation of
law.

         "Obligations" means (i) the Note, including interest thereon and any
extensions, renewals or replacements thereof, and all other obligations of
Borrower to Lender under the Loan documents, and (ii) each and every debt,
liability and obligation of every type and description which the Corporate
Guarantor may now or at any time hereafter owe to the Secured Party, whether
such debt, liability or obligation now exists or is hereafter created or
incurred and whether it is or may be direct or indirect, due or to become due,
or absolute or contingent, including without limitation all obligations under
the Guaranty.

         "Permitted Liens" means (i) the Security Interest, (ii) covenants,
restrictions, rights, easements and minor irregularities in title which do not
materially interfere with the Corporate Guarantor's business or operations as
presently conducted, and (iii) Liens in existence on the date hereof and
described on Exhibit B hereto, (iv) purchase money Liens relating to the
acquisition or lease of vehicles, machinery and equipment of the Corporate
Guarantor not exceeding the lesser of cost or fair market value thereof, in the
ordinary course of business, and so long as no Default Period is then in
existence and none would exist immediately after such acquisition, (v) liens for
taxes, assessments, or other governmental charges which are not delinquent or
which are being contested in good faith and for which adequate reserves have
been established in accordance with GAAP, and (vi) liens of mechanics,
materialmen, warehousemen, carriers or other similar statutory liens securing
obligations that are not yet due and are incurred in the ordinary course of
business.

         "Security Interest" has the meaning given in Section 2.

         "UCC" means Uniform Commercial Code as in effect from time to time
(including after July 1, 2001) in the State of Colorado.

         2.       Security Interest. The Corporate Guarantor hereby grants the
Secured Party a security interest (the "Security Interest") in the Collateral to
secure payment of the Obligations.

         3.       Representations, Warranties and Agreements. The Corporate
Guarantor hereby represents, warrants and agrees as follows:

         (a)      TITLE. The Corporate Guarantor (i) has absolute title to each
item of Collateral in existence on the date hereof, free and clear of all Liens
except the Security Interest, the permitted liens as identified on Exhibit B
hereto (the "Permitted Liens"), (ii) will have, at the time the Corporate
Guarantor acquires any rights in Collateral hereafter arising, absolute title
to, or a valid "leasehold interest" (as such term is defined in Section 2.5.103
of the UCC) in each such item of Collateral free and clear of all Liens except
Permitted Liens, (iii) will keep all Collateral free and clear of all Liens
except Permitted Liens, and (iv) will defend the Collateral against all claims
or demands of all persons other than the Secured Party. The Corporate Guarantor
will not sell or otherwise dispose of the Collateral or any interest therein,
outside the ordinary course of business, without the prior written consent of
the Secured Party.

         (b)      CHIEF EXECUTIVE OFFICE; IDENTIFICATION NUMBER. The Corporate
Guarantor's chief executive office and principal place of business is located at
the address set forth under its

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signature below. The Corporate Guarantor's federal employer identification
number is correctly set forth under its signature below.

         (c)      LOCATION OF COLLATERAL. As of the date hereof, the tangible
Collateral is located only in the states and at the address, as identified on
Exhibit A attached hereto. The Corporate Guarantor will not permit any tangible
Collateral to be located in any state (and, if county filing is required, in any
county) in which a financing statement covering such Collateral is required to
be, but has not in fact been, filed in order to perfect the Security Interest.

         (d)      CHANGES IN NAME, CONSTITUENT DOCUMENTS, LOCATION. The
Corporate Guarantor will not change its name, articles of incorporation or
bylaws, or jurisdiction of organization, without the prior written consent of
the Secured Party. The Corporate Guarantor will not change its business address,
without prior written notice to the Secured Party.

         (e)      FIXTURES. The Corporate Guarantor will not permit any tangible
Collateral to become part of or to be affixed to any real property without first
assuring to the reasonable satisfaction of the Secured Party that the Security
Interest will be prior and senior to any Lien then held or thereafter acquired
by any mortgagee of such real property or the owner or purchaser of any interest
therein.

         (f)      RIGHTS TO PAYMENT. Each right to payment and each instrument,
document, chattel paper and other agreement constituting or evidencing
Collateral is (or will be when arising, issued or assigned to the Secured Party)
the valid, genuine and legally enforceable obligation, subject to no defense,
setoff or counterclaim (other than those arising in the ordinary course of
business), of the account debtor or other obligor named therein or in the
Corporate Guarantor's records pertaining thereto as being obligated to pay such
obligation. The Corporate Guarantor will neither agree to any material
modification or amendment nor agree to any forbearance, release or cancellation
of any such obligation, and will not subordinate any such right to payment to
claims of other creditors of such account debtor or other obligor.

         (g)      COMMERCIAL TORT CLAIMS. Promptly upon knowledge thereof, the
Corporate Guarantor will deliver to the Secured Party notice of any commercial
tort claims it may bring against any person, including the name and address of
each defendant, a summary of the facts, an estimate of the Corporate Guarantor's
damages, copies of any complaint or demand letter submitted by the Corporate
Guarantor, and such other information as the Lender may request. Upon request by
the Secured Party, the Corporate Guarantor will grant the Secured Party a
security interest in all commercial tort claims it may have against any person.

         (h)      MISCELLANEOUS COVENANTS. The Corporate Guarantor will:

                  (i)       keep all tangible Collateral in good repair, working
         order and condition, normal depreciation excepted, and will, from time
         to time, replace any worn, broken or defective parts thereof;

                  (ii)      promptly pay all taxes and other governmental
         charges levied or assessed upon or against any Collateral or upon or
         against the creation, perfection or continuance of the Security
         Interest;

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                  (iii)     at all reasonable times, permit the Secured Party or
         its representatives to examine or inspect any Collateral, wherever
         located, and to examine, inspect and copy the Corporate Guarantor's
         books and records pertaining to the Collateral and its business and
         financial condition and to send and discuss with account debtors and
         other obligors requests for verifications of amounts owed to the
         Corporate Guarantor;

                  (iv)      keep accurate and complete records pertaining to the
         Collateral and pertaining to the Corporate Guarantor's business and
         financial condition and submit to the Secured Party such periodic
         reports concerning the Collateral and the Corporate Guarantor's
         business and financial condition as the Secured Party may from time to
         time reasonably request;

                  (v)       promptly notify the Secured Party of any loss of or
         material damage to any Collateral or of any adverse change, known to
         the Corporate Guarantor, in the prospect of payment of any sums due on
         or under any instrument, chattel paper, or account constituting
         Collateral;

                  (vi)     if the Secured Party at any time so requests (after
         the occurrence of an Event of Default), promptly deliver to the Secured
         Party any instrument, document or chattel paper constituting
         Collateral, duly endorsed or assigned by the Corporate Guarantor;

                  (vii)     at all times keep all tangible Collateral insured
         against risks of fire (including so-called extended coverage), theft,
         collision (in case of Collateral consisting of motor vehicles) and such
         other risks and in such amounts as the Secured Party may reasonably
         request, with any such policies containing a lender loss payable
         endorsement acceptable to the Secured Party;

                  (viii)   from time to time execute such financing statements
         as the Secured Party may reasonably require in order to perfect the
         Security Interest and, if any Collateral consists of a motor vehicle,
         execute such documents as may be required to have the Security Interest
         properly noted on a certificate of title;

                  (ix)      pay when due or reimburse the Secured Party on
         demand for all costs of collection of any of the Obligations and all
         other out-of-pocket expenses (including in each case all reasonable
         attorneys' fees) incurred by the Secured Party in connection with the
         creation, perfection, satisfaction, protection, defense or enforcement
         of the Security Interest or the creation, continuance, protection,
         defense or enforcement of this Agreement or any or all of the
         Obligations, including expenses incurred in any litigation or
         bankruptcy or insolvency proceedings;

                  (x)       execute, deliver or endorse any and all instruments,
         documents, assignments, security agreements and other agreements and
         writings which the Secured Party may at any time reasonably request in
         order to secure, protect, perfect or enforce the Security Interest and
         the Secured Party's rights under this Agreement; and

                 (xi)      not use or keep any Collateral, or permit it to be
         used  kept, for any unlawful purpose or in violation of any federal,
         state or local law, statute or ordinance.

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         (i)     SECURED PARTY'S RIGHT TO TAKE ACTION. The Corporate Guarantor
authorizes the Secured Party to file from time to time where permitted by law,
such financing statements against collateral described as "all personal
property" as the Secured Party deems necessary or useful to perfect the Security
Interest. The Corporate Guarantor will not amend any financing statements in
favor of the Secured Party except as permitted by law. Further, if the Corporate
Guarantor at any time fails to perform or observe any agreement contained in
Section 3(h), and if such failure continues for a period of ten (10) days after
the Secured Party gives the Corporate Guarantor written notice thereof (or, in
the case of the agreements contained in clauses (vii) and (viii) of Section
3(h), immediately upon the occurrence of such failure, without notice or lapse
of time), the Secured Party may (but need not) perform or observe such agreement
on behalf and in the name, place and stead of the Corporate Guarantor (or, at
the Secured Party's option, in the Secured Party's own name) and may (but need
not) take any and all other actions which the Secured Party may reasonably deem
necessary to cure or correct such failure (including, without limitation the
payment of taxes, the satisfaction of security interests, liens, or
encumbrances, the performance of obligations under contracts or agreements with
account debtors or other obligors, the procurement and maintenance of insurance,
the execution of financing statements, the endorsement of instruments, and the
procurement of repairs or transportation); and, except to the extent that the
effect of such payment would be to render any loan or forbearance of money
usurious or otherwise illegal under any applicable law, the Corporate Guarantor
shall thereupon pay the Secured Party on demand the amount of all moneys
expended and all costs and expenses (including reasonable attorneys' fees)
incurred by the Secured Party in connection with or as a result of the Secured
Party's performing or observing such agreements or taking such actions, together
with interest thereon from the date expended or incurred by the Secured Party at
the highest rate then applicable to any of the Obligations. To facilitate the
performance or observance by the Secured Party of such agreements of the
Corporate Guarantor, the Corporate Guarantor hereby irrevocably appoints (which
appointment is coupled with an interest) the Secured Party, or its delegate, as
the attorney-in-fact of the Corporate Guarantor with the right (but not the
duty) from time to time to create, prepare, complete, execute, deliver, endorse
or file, in the name and on behalf of the Corporate Guarantor, any and all
instruments, documents, financing statements, applications for insurance and
other agreements and writings required to be obtained, executed, delivered or
endorsed by the Corporate Guarantor under this Section 3 and Section 4.

         4.       Rights of Secured Party. At any time and from time to time,
whether before or after an Event of Default, the Secured Party may take any or
all of the following actions:

         (a)      ACCOUNT VERIFICATION. The Secured Party may at any time and
from time to time send or require the Corporate Guarantor to send requests for
verification of accounts or notices of assignment to account debtors and other
obligors. The Secured Party may also at any time and from time to time telephone
account debtors and other obligors to verify accounts.

         (b)      COLLATERAL ACCOUNT. The Secured Party may establish a
collateral account for the deposit of checks, drafts and cash payments made by
the Corporate Guarantor's account debtors. If a collateral account is so
established, the Corporate Guarantor shall promptly deliver to the Secured
Party, for deposit into said collateral account, all payments on Accounts and
chattel paper received by it. All such payments shall be delivered to the
Secured Party in the form received (except for the Corporate Guarantor's
endorsement where necessary). Until so

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deposited, all payments on Accounts and chattel paper received by the Corporate
Guarantor shall be held in trust by the Corporate Guarantor for and as the
property of the Secured Party and shall not be commingled with any funds or
property of the Corporate Guarantor. All deposits in said collateral account
shall constitute proceeds of Collateral and shall not constitute payment of any
Obligation. Unless otherwise agreed in writing, the Corporate Guarantor shall
have no right to withdraw amounts on deposit in any collateral account.

         (c)      LOCKBOX. The Secured Party may, by notice to the Corporate
Guarantor, require the Corporate Guarantor to direct each of its account debtors
to make payment directly to a special lockbox to be under the control of the
Secured Party. The Corporate Guarantor hereby authorizes and directs the Secured
Party to deposit all checks, drafts and cash payments received in said lockbox
into the collateral account established as set forth above.

         (d)      DIRECT COLLECTION. The Secured Party may notify any account
debtor, or any other person obligated to pay any amount due, that such chattel
paper, Account, or other right to payment has been assigned or transferred to
the Secured Party for security and shall be paid directly to the Secured Party.
At any time after the Secured Party or the Corporate Guarantor gives such notice
to an account debtor or other obligor, the Secured Party may (but need not), in
its own name or in the Corporate Guarantor's name, demand, sue for, collect or
receive any money or property at any time payable or receivable on account of,
or securing, any such chattel paper, Account, or other right to payment, or
grant any extension to, make any compromise or settlement with or otherwise
agree to waive, modify, amend or change the obligations (including collateral
obligations) of any such account debtor or other obligor.

         5.       Assignment of Insurance. The Corporate Guarantor hereby
assigns to the Secured Party, as additional security for the payment of the
Obligations, any and all moneys (including but not limited to proceeds of
insurance and refunds of unearned premiums) due or to become due under, and all
other rights of the Corporate Guarantor under or with respect to, any and all
policies of insurance covering the Collateral, and the Corporate Guarantor
hereby directs the issuer of any such policy to pay any such moneys directly to
the Secured Party. After the occurrence of an Event of Default, the Secured
Party may (but need not), in its own name or in the Corporate Guarantor's name,
execute and deliver proofs of claim, receive all such moneys, endorse checks and
other instruments representing payment of such moneys, and adjust, litigate,
compromise or release any claim against the issuer of any such policy.

         6.       Events of Default. Each of the following occurrences shall
constitute an event of default under this Agreement (herein called "Event of
Default"): (i) an Event of Default shall occur under the Credit Agreement; or
(ii) the Corporate Guarantor shall fail to pay any or all of the Obligations
when due or (if payable on demand) on demand; or (iii) the Corporate Guarantor
shall fail to observe or perform any covenant or agreement herein binding on it.

         7.       Remedies upon Event of Default. Upon the occurrence of an
Event of Default and at any time thereafter, the Secured Party may exercise any
one or more of the following rights and remedies: (i) declare all unmatured
Obligations to be immediately due and payable, and the same shall thereupon be
immediately due and payable, without presentment or other notice or demand; (ii)
exercise and enforce any or all rights and remedies available upon default to a
secured party under the UCC, including but not limited to the right to take
possession of any Collateral, proceeding without judicial process or by judicial
process (without a prior hearing or

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notice thereof, which the Corporate Guarantor hereby expressly waives), and the
right to sell, lease or otherwise dispose of any or all of the Collateral, and
in connection therewith, the Secured Party may require the Corporate Guarantor
to make the Collateral available to the Secured Party at a place to be
designated by the Secured Party which is reasonably convenient to both parties,
and if notice to the Corporate Guarantor of any intended disposition of
Collateral or any other intended action is required by law in a particular
instance, such notice shall be deemed commercially reasonable if given (in the
manner specified in Section 9) at least ten (10) days prior to the date of
intended disposition or other action; (iii) exercise or enforce any or all other
rights or remedies available to the Secured Party by law or agreement against
the Collateral, against the Corporate Guarantor or against any other person or
property. The Secured Party is hereby granted a nonexclusive, worldwide and
royalty-free license to use or otherwise exploit all Intellectual Property
Rights owned by or licensed to the Corporate Guarantor that the Secured Party
deems necessary or appropriate to the disposition of any Collateral.

         8.       Other Personal Property. Unless at the time the Secured Party
takes possession of any tangible Collateral, or within seven days thereafter,
the Corporate Guarantor gives written notice to the Secured Party of the
existence of any goods, papers or other property of the Corporate Guarantor, not
affixed to or constituting a part of such Collateral, but which are located or
found upon or within such Collateral, describing such property, the Secured
Party shall not be responsible or liable to the Corporate Guarantor for any
action taken or omitted by or on behalf of the Secured Party with respect to
such property.

         9.       Notices; Requests for Accounting. All notices and other
communications hereunder shall be in writing and shall be (a) personally
delivered, (b) sent by first class United States mail, (c) sent by overnight
courier of national reputation, or (d) transmitted by telecopy, in each case
addressed or telecopied to the party to whom notice is being given at its
address or telecopier number as set forth below its signature or, as to each
party, at such other address or telecopier number as may hereafter be designated
by such party in a written notice to the other party complying as to delivery
with the terms of this Section. All such notices, requests, demands and other
communications shall be deemed to have been given on (i) the date received if
personally delivered, (ii) when deposited in the mail if delivered by mail,
(iii) the date sent if sent by overnight courier, or (iv) the date of
transmission if delivered by telecopy. All requests under Section 9-210 of the
UCC (i) shall be made in a writing signed by an authorized person, (ii) shall be
personally delivered, sent by registered or certified mail, return receipt
requested, or by overnight courier of national reputation (iii) shall be deemed
to be sent when received by the Secured Party and (iv) shall otherwise comply
with the requirements of Section 9-210. The Corporate Guarantor requests that
the Secured Party respond to all such requests which on their face appear to
come from an authorized individual and releases the Secured Party from any
liability for so responding. The Corporate Guarantor shall pay Secured Party the
maximum amount allowed by law for responding to such requests.

         10.      Termination. This Agreement, and the Security Interest granted
by the Corporate Guarantor to the Secured Party hereunder, shall terminate upon
the date all Obligations are satisfied in full and the Commitment is terminated.

         11.      Miscellaneous. This Agreement has been duly and validly
authorized by all necessary corporate action. This Agreement does not
contemplate a sale of accounts, or chattel paper. This Agreement can be waived,
modified, amended, terminated or discharged, and the

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Security Interest can be released, only explicitly in a writing signed by the
Secured Party, and, in the case of amendment or modification, in a writing
signed by the Corporate Guarantor. A waiver signed by the Secured Party shall be
effective only in the specific instance and for the specific purpose given. Mere
delay or failure to act shall not preclude the exercise or enforcement of any of
the Secured Party's rights or remedies. All rights and remedies of the Secured
Party shall be cumulative and may be exercised singularly or concurrently, at
the Secured Party's option, and the exercise or enforcement of any one such
right or remedy shall neither be a condition to nor bar the exercise or
enforcement of any other. The Secured Party's duty of care with respect to
Collateral in its possession (as imposed by law) shall be deemed fulfilled if
the Secured Party exercises reasonable care in physically safekeeping such
Collateral or, in the case of Collateral in the custody or possession of a
bailee or other third person, exercises reasonable care in the selection of the
bailee or other third person, and the Secured Party need not otherwise preserve,
protect, insure or care for any Collateral. The Secured Party shall not be
obligated to preserve any rights the Corporate Guarantor may have against prior
parties, to realize on the Collateral at all or in any particular manner or
order, or to apply any cash proceeds of Collateral in any particular order of
application. This Agreement shall be binding upon and inure to the benefit of
the Corporate Guarantor and the Secured Party and their respective successors
and assigns and shall take effect when signed by the Corporate Guarantor and
delivered to the Secured Party, and the Corporate Guarantor waives notice of the
Secured Party's acceptance hereof. The Secured Party may execute this Agreement
if appropriate for the purpose of filing, but the failure of the Secured Party
to execute this Agreement shall not affect or impair the validity or
effectiveness of this Agreement. A carbon, photographic or other reproduction of
this Agreement or of any financing statement signed by the Corporate Guarantor
shall have the same force and effect as the original for all purposes of a
financing statement. This Agreement shall be governed by and construed in
accordance with the substantive laws (other than conflict laws) of the State of
Colorado. If any provision or application of this Agreement is held unlawful or
unenforceable in any respect, such illegality or unenforceability shall not
affect other provisions or applications which can be given effect and this
Agreement shall be construed as if the unlawful or unenforceable provision or
application had never been contained herein or prescribed hereby. All
representations and warranties contained in this Agreement shall survive the
execution, delivery and performance of this Agreement and the creation and
payment of the Obligations. The parties hereto hereby (i) consent to the
personal jurisdiction of the state and federal courts located in the State of
Colorado in connection with any controversy related to this Agreement; (ii)
waive any argument that venue in any such forum is not convenient, (iii) agree
that any litigation initiated by the Secured Party or the Corporate Guarantor in
connection with this Agreement or the other Loan Documents may be venued in
either the state or federal courts located in the City and County of Denver,
Colorado; and (iv) agree that a final judgment in any such suit, action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.

         THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT.

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

WELLS FARGO BUSINESS CREDIT, INC.             METRETEK TECHNOLOGIES, INC.

By: ______________________________________    By: ______________________________
      Patti Scudder                                 A. Bradley Gabbard
      Corporate Banking Officer                     Executive Vice President

Address:
                                              Address:
Wells Fargo Business Credit, Inc.
MAC C7300-210                                 303 East Seventeenth Avenue
1740 Broadway                                 Suite 660
Denver, Colorado 80274                        Denver, Colorado 80203
Attention: Patti Scudder                      Attention: A. Bradley Gabbard
Employer identification number: 41-1237652    Employer identification number:
                                              84-1169358

                                       10<PAGE>

                                                                    EXHIBIT 10.4

                FOURTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT

         This Amendment, dated as of September 24, 2003, is made by and between
SOUTHERN FLOW COMPANIES, INC., a Delaware corporation (the "Borrower"), and
WELLS FARGO BUSINESS CREDIT, INC., a Minnesota corporation (the "Lender").

                                    RECITALS

         The Borrower and the Lender are parties to a Credit and Security
Agreement dated as of September 24, 2001, as amended by (i) the First Amendment
to Credit and Security Agreement dated as of November 19, 2002, (ii) the Second
Amendment to Credit and Security Agreement and Waiver of Defaults dated as of
March 26, 2003 and (iii) the Third Amendment to Credit and Security Agreement
dated as of April 4, 2003 (as so amended, the "Credit Agreement"). Capitalized
terms used in these recitals have the meanings given to them in the Credit
Agreement unless otherwise specified.

         The Borrower has requested that certain amendments be made to the
Credit Agreement, which the Lender is willing to make pursuant to the terms and
conditions set forth herein.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, it is agreed as follows:

         1.       Defined Terms. Capitalized terms used in this Amendment which
are defined in the Credit Agreement shall have the same meanings as defined
therein, unless otherwise defined herein. In addition, Section 1.1 of the Credit
Agreement is amended by adding or amending, as the case may be, the following
definitions:

         "Availability" means the lessor of (I) the difference of (i) the
Borrowing Base and (ii) the outstanding principal balance of the Revolving Note
and (II) the Maximum Line less the sum of (A) the outstanding principal balance
of the Revolving Note, (B) the outstanding principal balance of the Metretek
Revolving Note, (C) the Metretek L/C Amount, (D) the outstanding principal
balance of the PowerSecure Revolving Note and (E) the PowerSecure L/C Amount.

         "Borrowing Base" means at any time the lesser of:

         (a)      the Maximum Line; or

         (b)      subject to change from time to time in the Lender's sole
discretion, the sum of:

                  (i)      85% of Eligible Accounts,

                  (ii)     the lesser of (A) 20% of Eligible Inventory or (B)
$200,000,

<PAGE>

                  (iii)    65% of Unbilled Charts,

                  (iv)     65% of Unbilled Fieldwork, plus

                  (v)      65% of Unbilled Lab Work.

         "Maturity Date" means September 30, 2006.

         "Maximum Line" means $3,000,000 unless said amount is reduced pursuant
to Section 2.9, in which event it means such lower amount.

         "Metretek Credit and Security Agreement" means the Credit and Security
Agreement dated as of September 6, 2002, by and between Metretek, Incorporated,
a Florida corporation and the Lender, as amended by a First Amendment to Credit
and Security Agreement and Waiver of Defaults dated as of March 26, 2003 and by
a Second Amendment to Credit and Security Agreement dated as of September 24,
2003, and as may be further amended from time to time.

         "Metretek L/C Amount" means the L/C Amount as defined in the Metretek
Credit and Security Agreement.

         "Metretek Revolving Advances" means Revolving Advances as defined in
the Metretek Credit and Security Agreement.

         "Metretek Revolving Note" means the Revolving Note as defined in the
Metretek Credit and Security Agreement.

         "PowerSecure Credit and Security Agreement" means the Credit and
Security Agreement dated as of September 24, 2003, by and between PowerSecure,
Inc., a Delaware corporation and the Lender, as may be further amended from time
to time.

         "PowerSecure L/C Amount" means the L/C Amount as defined in the
PowerSecure Credit and Security Agreement.

         "PowerSecure Revolving Advances" means Revolving Advances as defined in
the PowerSecure Credit and Security Agreement.

         "PowerSecure Revolving Note" means the Revolving Note as defined in the
PowerSecure Credit and Security Agreement.

         "Southern Flow Guaranty" means the guaranty by the Borrower in favor of
the Lender in connection with the Metretek Credit and Security Agreement.

         "Southern Flow Security Agreement" means the security agreement by and
between the Borrower and the Lender in connection with the Metretek Credit and
Security Agreement.

                                       2

<PAGE>

         "Unbilled Charts" means the six month average of prior monthly chart
billings, reported on a weekly basis to the Lender, representing charts that
have been submitted to the Borrower for their review and integration of the
measurements from each project, which would not otherwise be Eligible Accounts.

         "Unbilled Fieldwork" means the six month average of prior monthly
fieldwork billings, reported on a weekly basis to the Lender, representing
fieldwork that has been performed by the Borrower's representatives in various
locations and submitted to the Borrower for processing, which would not
otherwise be Eligible Accounts.

         "Unbilled Lab Work" means the six month average of prior monthly
billings for lab work, reported on a weekly basis to the Lender, representing
lab work that has been performed by the Borrower, which would not otherwise be
Eligible Accounts.

         2.       Section 2.5(b). Section 2.5(b) of the Credit Agreement is
amended and restated in its entirety to read as follows:

                  "(b)     MINIMUM INTEREST CHARGE. Notwithstanding the interest
payable pursuant to Subsection (a), the Borrower shall pay to the Lender
interest of not less than $37,500 per quarter (the "Minimum Interest Charge")
during the term of this Agreement, and the Borrower shall pay any deficiency
between (i) the Minimum Interest Charge and (ii) the sum of the amount of
interest otherwise calculated under Section 2.5(a) of this Agreement, Section
2.8(a) of the Metretek Credit and Security Agreement and Section 2.8(a) of the
PowerSecure Credit and Security Agreement; on the first day of each quarter and
on the Termination Date. The Borrower will be given full credit on a dollar for
dollar basis against the Minimum Interest Charge payable hereunder to the extent
such amount is paid to the Lender pursuant to the Metretek Credit and Security
Agreement or the PowerSecure Credit and Security Agreement."

         3.       Sections 2.6(c), 2.6(e) and 2.6(f). Sections 2.6(c), 2.6(e)
and 2.6(f) of the Credit Agreement are amended and restated in their entirety to
read as follows:

                  "(c)     TERMINATION AND LINE REDUCTION FEES. If the Credit
Facility is terminated (i) by the Lender during a Default Period that begins
before a Maturity Date, (ii) by the Borrower (A) as of a date other than a
Maturity Date or (B) as of a Maturity Date but without the Lender having
received written notice of such termination at least 90 days before such
Maturity Date, or if the Borrower reduces the Maximum Line, the Borrower shall
pay to the Lender a fee in an amount equal to a percentage of the Maximum Line
(or the reduction of the Maximum Line, as the case may be) as follows: (A) two
percent (2.0%) if the termination or reduction occurs on or before September 30,
2004; and (B) one percent (1.0%) if the termination or reduction occurs after
September 30, 2004. The Borrower will be given full credit on a dollar for
dollar basis against the fee payable hereunder to the extent such amount is paid
to the Lender pursuant to the Metretek Credit and Security Agreement or the
PowerSecure Credit and Security Agreement."

                  "(e)     UNUSED LINE FEE. For the purposes of this Section
2.6, "Unused Amount" means the Maximum Line reduced by (A) outstanding Revolving
Advances, (B)

                                       3

<PAGE>

outstanding Metretek Revolving Advances, ( C) the Metretek L/C Amount, (D)
outstanding PowerSecure Revolving Advances and (E) the PowerSecure L/C Amount.
The Borrower agrees to pay to the Lender an unused line fee at the rate of one
quarter of one percent (.25%) per annum on the average daily Unused Amount from
the date of this Agreement to and including the Termination Date, due and
payable monthly in arrears on the first day of the month and on the Termination
Date. The Borrower will be given full credit on a dollar for dollar basis
against the unused line fee payable hereunder to the extent such amount is paid
to the Lender pursuant to the Metretek Credit and Security Agreement or the
PowerSecure Credit and Security Agreement."

                  "(f)     FACILITY FEE. The Borrower agrees to pay to the
Lender an annual facility fee at the rate of one half of one percent (.50%) of
the Maximum Line, which facility fee shall be due and payable annually on
September 1st. The Borrower will be given full credit on a dollar for dollar
basis against the facility fee payable hereunder to the extent such amount is
paid to the Lender pursuant to the Metretek Credit and Security Agreement or the
PowerSecure Credit and Security Agreement."

         4.       Section 2.14. Section 2.14 of the Credit Agreement is amended
and restated in its entirety to read as follows:

                  "Section 2.14     "Reserved"."

         5.       Section 7.1. Section 7.1 of the Credit Agreement is amended by
deleting the following phrase at the end thereof:

                  "provided, however, that an Event of Default under Section
7.1(u) of the Credit and Security Agreement dated September 6, 2002 by and
between Metretek, Incorporated and Wells Fargo Business Credit, Inc. shall not
be considered an Event of Default hereunder."

and inserting the following phrase in its place:

                  "Provided, however, notwithstanding anything to the contrary
herein or in the Southern Flow Guaranty or the Southern Flow Security Agreement,
a default under Section 6.2(a) or Section 6.2(b) of the Metretek Credit and
Security Agreement ( a "Metretek Default") shall not constitute an Event of
Default under this Agreement, the Southern Flow Guaranty or the Southern Flow
Security Agreement if within 20 days of the occurrence of the Metretek Default:

         (1)      the Metretek Default is waived by the Lender in writing, or

         (2)      each of the following conditions precedent have been
satisfied, each in form and substance satisfactory to the Lender:

         A.       The Metretek Revolving Note and the Metretek L/C Amount are
paid in full, and all fees and expenses of the Lender payable under the Metretek
Credit and Security Agreement are paid in full.

                                       4

<PAGE>

         B.       The Metretek Credit and Security Agreement is terminated by
Metretek, Incorporated.

         C.       The Term Note is paid in full.

         D.       Neither the Borrower nor PowerSecure, Inc. are in default
under this Agreement or the PowerSecure Credit and Security Agreement, or any
guarantees by the Borrower or PowerSecure, Inc. in favor of the Lender or any
security agreements by and between the Lender and the Borrower or PowerSecure,
Inc.

provided, further, however, that Metretek, Incorporated will remain as a
Guarantor under this Agreement and under the PowerSecure Credit and Security
Agreement."

         6.       Schedule 6.4. Schedule 6.4 of the Credit Agreement is amended
by adding the following new guaranties at the end thereof:

                  "Guaranty of the PowerSecure Credit and Security Agreement."

                  "Guaranty of Metretek Technologies, Inc. Non-Negotiable
Promissory Note to be issued in the amount of $3,000,000 to the Heins Settlement
Fund."

         7.       Exhibit A. Exhibit A of the Credit Agreement is amended and
restated in its entirety and replaced with Exhibit A attached hereto.

         8.       No Other Changes. Except as explicitly amended by this
Amendment, all of the terms and conditions of the Credit Agreement shall remain
in full force and effect and shall apply to any advance or letter of credit
thereunder.

         9.       Restructure Fee. The Borrower shall pay the Lender as of the
date hereof a fully earned, non-refundable restructure fee in the amount of
$7,500 in consideration of the Lender's execution and delivery of this
Amendment. The Borrower will be given full credit on a dollar for dollar basis
against the restructure fee payable hereunder to the extent such amount is paid
to the Lender pursuant to the Metretek Credit and Security Agreement or the
PowerSecure Credit and Security Agreement.

         10.      Conditions Precedent. This Amendment shall be effective when
the Lender shall have received an executed original hereof, together with each
of the following, each in substance and form acceptable to the Lender in its
sole discretion:

                  (a)      The Revolving Note, properly executed by the
Borrower.

                  (b)      A guaranty, properly executed by Metretek Contract
Manufacturing Company, Inc., pursuant to which Metretek Contract Manufacturing
Company, Inc. unconditionally guarantees the full and prompt payment of all
Obligations.

                                       5

<PAGE>

                  (c)      A security agreement from Metretek Contract
Manufacturing Company, Inc., pursuant to which Metretek Contract Manufacturing
Company, Inc. grants a security interest on all of its assets to Lender as
security for the Obligations.

                  (d)      The Acknowledgment and Agreement of Guarantors set
forth at the end of this Amendment, duly executed by each Guarantor.

                  (e)      Payment of the fee described in Paragraph 9.

                  (f)      Such other matters as the Lender may require.

         11.      Representations and Warranties. The Borrower hereby represents
and warrants to the Lender as follows:

                  (a)      The Borrower has all requisite power and authority to
execute this Amendment and the Revolving Note and to perform all of its
obligations thereunder, and this Amendment and the Revolving Note have been duly
executed and delivered by the Borrower and constitute the legal, valid and
binding obligations of the Borrower, enforceable in accordance with their terms.

                  (b)      The execution, delivery and performance by the
Borrower of this Amendment and the Revolving Note has been duly authorized by
all necessary corporate action and does not (i) require any authorization,
consent or approval by any governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, (ii) violate any provision of
any law, rule or regulation or of any order, writ, injunction or decree
presently in effect, having applicability to the Borrower, or the articles of
incorporation or by-laws of the Borrower, or (iii) result in a breach of or
constitute a default under any indenture or loan or credit agreement or any
other agreement, lease or instrument to which the Borrower is a party or by
which it or its properties may be bound or affected.

                  (c)      All of the representations and warranties contained
in Article V of the Credit Agreement are correct on and as of the date hereof as
though made on and as of such date, except to the extent that such
representations and warranties relate solely to an earlier date.

         12.      References. All references in the Credit Agreement to "this
Agreement" shall be deemed to refer to the Credit Agreement as amended hereby;
and any and all references in the Security Documents to the Credit Agreement
shall be deemed to refer to the Credit Agreement as amended hereby.

         13.      No Other Waiver. The execution of this Amendment and any
documents related hereto shall not be deemed to be a waiver of any Default or
Event of Default under the Credit Agreement or breach, default or event of
default under any Security Document or other document held by the Lender,
whether or not known to the Lender and whether or not existing on the date of
this Amendment.

                                       6

<PAGE>

         14.      Release. The Borrower and each Guarantor by signing the
Acknowledgment and Agreement of Guarantors set forth below, each hereby
absolutely and unconditionally releases and forever discharges the Lender, and
any and all participants, parent corporations, subsidiary corporations,
affiliated corporations, insurers, indemnitors, successors and assigns thereof,
together with all of the present and former directors, officers, agents and
employees of any of the foregoing, from any and all claims, demands or causes of
action of any kind, nature or description, whether arising in law or equity or
upon contract or tort or under any state or federal law or otherwise, which the
Borrower or such Guarantor has had, now has or has made claim to have against
any such person for or by reason of any act, omission, matter, cause or thing
whatsoever arising from the beginning of time to and including the date of this
Amendment, whether such claims, demands and causes of action are matured or
unmatured or known or unknown.

         15.      Costs and Expenses. The Borrower hereby reaffirms its
agreement under the Credit Agreement to pay or reimburse the Lender on demand
for all costs and expenses incurred by the Lender in connection with the Loan
Documents, including without limitation all reasonable fees and disbursements of
legal counsel. Without limiting the generality of the foregoing, the Borrower
specifically agrees to pay all fees and disbursements of counsel to the Lender
for the services performed by such counsel in connection with the preparation of
this Amendment and the documents and instruments incidental hereto. The Borrower
hereby agrees that the Lender may, at any time or from time to time in its sole
discretion and without further authorization by the Borrower, make a loan to the
Borrower under the Credit Agreement, or apply the proceeds of any loan, for the
purpose of paying any such fees, disbursements, costs and expenses and the fee
required under Paragraph 9 hereof.

         16.      Miscellaneous. This Amendment and the Acknowledgment and
Agreement of Guarantors may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed an original and all of
which counterparts, taken together, shall constitute one and the same
instrument.

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

WELLS FARGO BUSINESS CREDIT, INC.        SOUTHERN FLOW COMPANIES, INC.

By:   /s/ Patti Scudder                  By:   /s/ A. Bradley Gabbard
      ------------------------------           --------------------------------
Name: Patti Scudder                      Name: A. Bradley Gabbard
Its:  Commercial Banking Officer         Its:  Chief Financial Officer

                                       7

<PAGE>

                                      EXHIBIT A TO CREDIT AND SECURITY AGREEMENT

                       AMENDED AND RESTATED REVOLVING NOTE

$3,000,000                                                      Denver, Colorado
                                                              September 24, 2003

         For value received, the undersigned, SOUTHERN FLOW COMPANIES, INC., a
Delaware corporation (the "Borrower"), hereby promises to pay on the Termination
Date under the Credit Agreement (defined below), to the order of WELLS FARGO
BUSINESS CREDIT, INC., a Minnesota corporation (the "Lender"), at its main
office in Denver, Colorado, or at any other place designated at any time by the
holder hereof, in lawful money of the United States of America and in
immediately available funds, the principal sum of Three Million Dollars
($3,000,000) or, if less, the aggregate unpaid principal amount of all Revolving
Advances made by the Lender to the Borrower under the Credit Agreement (defined
below) together with interest on the principal amount hereunder remaining unpaid
from time to time, computed on the basis of the actual number of days elapsed
and a 360-day year, from the date hereof until this Note is fully paid at the
rate from time to time in effect under the Credit and Security Agreement dated
as of September 24, 2001 (as amended, supplemented or restated from time to
time, the "Credit Agreement") by and between the Lender and the Borrower. The
principal hereof and interest accruing thereon shall be due and payable as
provided in the Credit Agreement. This Note may be prepaid only in accordance
with the Credit Agreement.

         This Note has been executed and delivered in substitution for and not
in repayment of the Note of the Borrower dated September 24, 2001, and is issued
pursuant, and is subject, to the Credit Agreement, which provides, among other
things, for acceleration hereof. This Note is the Revolving Note referred to in
the Credit Agreement. This Note is secured, among other things, pursuant to the
Credit Agreement and the Security Documents as therein defined, and may now or
hereafter be secured by one or more other security agreements, mortgages, deeds
of trust, assignments or other instruments or agreements.

         The Borrower shall pay all costs of collection, including reasonable
attorneys' fees and legal expenses if this Note is not paid when due, whether or
not legal proceedings are commenced.

         Presentment or other demand for payment, notice of dishonor and protest
are expressly waived.

<PAGE>

                                        SOUTHERN FLOW COMPANIES, INC.

                                        By: ________________________________
                                            A. Bradley Gabbard
                                            Chief Financial Officer

                                       2

<PAGE>

                   ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS

         The undersigned, each a guarantor of the indebtedness of Southern Flow
Companies, Inc. (the "Borrower") to Wells Fargo Business Credit, Inc. (the
"Lender") pursuant to a separate Guaranty dated as of September 24, 2001 (the
"Guaranty"), each hereby (i) acknowledges receipt of the foregoing Amendment;
(ii) consents to the terms (including without limitation the amendment of
Section 2.14 Termination of Corporate Guarantor Documents and the release set
forth in Paragraph 14 of the Amendment) and execution thereof; (iii) reaffirms
its obligations to the Lender pursuant to the terms of its Guaranty; and (iv)
acknowledges that the Lender may amend, restate, extend, renew or otherwise
modify the Credit Agreement and any indebtedness or agreement of the Borrower,
or enter into any agreement or extend additional or other credit accommodations,
without notifying or obtaining the consent of the undersigned and without
impairing the liability of the undersigned under its Guaranty for all of the
Borrower's present and future indebtedness to the Lender.

                                       METRETEK, INCORPORATED

                                       By:   /s/ A. Bradley Gabbard
                                             -----------------------------------
                                       Name: A. Bradley Gabbard
                                       Its:  Chief Financial Officer

                                       METRETEK TECHNOLOGIES, INC.

                                       By:   /s/ A. Bradley Gabbard
                                             -----------------------------------
                                       Name: A. Bradley Gabbard
                                       Its:  Executive Vice President

                                       POWERSECURE, INC.

                                       By:   /s/ A. Bradley Gabbard
                                             -----------------------------------
                                       Name: A. Bradley Gabbard
                                       Its:  Chief Financial Officer

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