Document:

Prepared by MerrillDirect

Exhibit 10.14

AGREEMENT AND PLAN OF MERGER

BETWEEN

ELECTRIC CITY CORP.

ELECTRIC CITY GREAT
LAKES ACQUISITION CORPORATION

AND

GREAT LAKES CONTROLED
ENERGY CORPORATION

EUGENE BORUCKI

AND

DENIS ENBERG

June 7, 2001

AGREEMENT OF MERGER

 

             THIS
AGREEMENT AND PLAN OF MERGER is dated as of June 7, 2001, and is between
ELECTRIC CITY CORP., a Delaware corporation ("Buyer") and ELECTRIC
CITY GREAT LAKES ACQUISITION CORPORATION, a Delaware corporation ("Acquisition"),
on the one hand, and EUGENE BORUCKI and DENIS ENBERG (each a "Shareholder"
and jointly, the "Shareholders") and GREAT LAKES CONTROLED
ENERGY CORPORATION, an Illinois corporation (the "Company"),
on the other hand.

             WHEREAS,
the Shareholders own all of the outstanding capital stock of the Company
(collectively, the "Shares");

             WHEREAS, Shareholders desire to sell
to Buyer and Buyer desires to acquire from the Shareholders all of the issued
and outstanding Shares in exchange for shares of common stock, par value $.0001
of Buyer (the "Common Stock");

             WHEREAS,
in order to consummate the transactions contemplated herein, Acquisition has
been formed and the Company will be merged with and into Acquisition (with
Acquisition as the surviving corporation), upon and subject to the terms as
further specified in this Agreement;

             NOW,
THEREFORE, the parties agree as follows:

ARTICLE
1.

Merger

             1.1        Merger.  Upon due satisfaction of all the conditions precedent set forth
herein, at the Effective Date (as defined below), Company shall be merged with
and into Acquisition on the terms and conditions set forth in this Agreement
and as permitted by and in accordance with the General Corporation Law of the
State of Delaware (the "General Corporation Law") and the
Illinois Business Corporation Act (the "IBCA").  Thereupon, the separate existence of the
Company shall terminate and Acquisition, as the surviving corporation (the
"Surviving Corporation"), shall continue to exist under and be
governed by the General Corporation Law, with its Articles of Incorporation and
its By-Laws as in effect at the Effective Date to remain unchanged, unless and
until amended subsequent thereto and except that, pursuant to the Certificate
of Merger (as defined below), the name of Acquisition shall be changed to
"Great Lakes Controlled Energy Corporation".

             1.2        Filing of Certificate of Merger.  Upon the Closing (as defined below), the
Company and Acquisition will cause the Certificate of Merger in substantially
the form of Exhibit A attached hereto (the "Certificate of
Merger") to be executed, acknowledged and filed with the Secretary of
State of the State of Delaware as provided in Section 252 of the General
Corporation Law, and the Surviving Corporation shall thereafter cause a copy of
the Certificate of Merger, certified by the Secretary of State of Delaware, to
be recorded in the appropriate counties' Recorders' offices, all in accordance
with Section 103 of the General Corporation Law, and in the offices of such
other public officials within and without the State of Delaware as may be
required by law, including the IBCA.

             1.3        Effective Date of Merger.  The Merger shall become effective
immediately upon the filing of the Certificate of Merger with the Secretary of
State of the State of Delaware, and if so required by the IBCA, the Secretary
of State of the State of Illinois.  The
date and time of such effectiveness is herein referred to as the "Effective
Date".

             1.4        Directors.  From and after the Effective Date, the
members of the Board of Directors of the Surviving Corporation holding office
on the Effective Date shall continue in office until their respective
successors have been duly elected and qualified or until their earlier death,
resignation or removal in accordance with the Surviving Corporation's Articles
of Incorporation and By-laws.

             1.5        Officers.  From and after the Effective Date, the
officers of the Surviving Corporation shall initially consist of the
individuals identified on Schedule 1.5 attached hereto until their
respective successors have been duly elected and qualified or until their
earlier death, resignation or removal in accordance with the Surviving
Corporation's By-laws.

             1.6        Conversion of Shares.  At the Effective Date, the then issued
shares of common stock of the Company outstanding shall, without any further
action on the part of Acquisition, the Company or the respective holders of
such shares, be converted into (i) Seventy-Five Thousand (75,000) shares of
Common Stock, plus (ii) the number of shares of Common Stock of Buyer equal to
$350,000 divided by the Value Per Share (collectively, the “Electric City
Stock”).   For purposes of this
Agreement, the Value Per Share (for purposes of determining the number of
shares of Common Stock of Buyer referred to in (ii) of the foregoing sentence)
of the Electric City Stock will be the average closing price of a share of
Common Stock of Buyer during the one hundred and twenty (120) day period prior
to the Closing as reported on the American Stock Exchange for such day.

             1.7        Legend.  The Electric City Stock shall each bear the following legend:

"The securities
represented hereby have not been registered under the Securities Act of 1933,
as amended, or under the securities laws of any state or other jurisdiction
(together, the "Securities Laws") and may not be offered for
sale, sold or otherwise transferred or encumbered in the absence of compliance
with such Securities Laws and until the issuer thereof shall have received from
counsel acceptable to it a written opinion reasonably satisfactory to it that
the proposed disposition will not violate any applicable Securities Laws."

             1.8        Registration.  If Buyer proposes or is required to register
the issuance or public resale of shares of common stock for cash under the
Securities Laws (other than on Forms S-4 or S-8 or similar registration forms)
or any applicable state securities law, it will give written notice to the
Shareholders of Buyer’s intention to do so. Upon the written request of a
Shareholder given within three (3) business days after receipt of the Buyer’s
notice, the Buyer shall, at its expense, subject to any and all registration
rights granted or that may be granted to others, on a pari passu basis with any
common stock being included in such registration for other stockholders of
Buyer, use its reasonable efforts to cause any Electric City Stock owned by
such Shareholder (that are not then transferable pursuant to Rule 144
promulgated under the Securities Laws) and requested by such Shareholder to be
registered under the Securities Laws to be so registered with such common stock;
provided that if the shareholder elects to participate in an underwritten
public offering pursuant to this Section and the managing underwriter
determines that less than all of the shares to be registered should be offered
for sale, the managing underwriter may exclude any or all shares of Electric
City Stock which are proposed to be registered pursuant to the piggy-back
rights granted herein.  On or prior to
the Closing Date, each Shareholder shall enter into an Indemnity and
Stockholder Agreement in the form attached hereto as Exhibit B and a
Trading Agreement attached hereto as Exhibit C. It is expected Buyer may
undertake a secondary offering of its shares of common stock and, in the event
such secondary offering occurs and shares of common stock are offered for sale
by holders of such shares, Shareholder will be permitted to participate in such
secondary offering in proportion to other such sellers, but subject to the
cutback provisions of this Section 1.8.

             1.9        Information for SEC Form SB-2.  The Shareholders represent and warrant that
no information hereafter furnished by any of the Shareholders for use in any
SEC Form SB2 or other Registration Statement will contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements contained therein not misleading.

             1.10      Purchase Price. The purchase price
to be paid by Buyer for the Shares shall consist of the Electric City Stock.

             1.11      The Closing.  The closing of the transactions provided for
in this Agreement (the "Closing") shall take place on June 7,
2001, provided the conditions described in Articles 5 and 6 are satisfied, or
at such other time and place as hereafter shall be mutually agreed upon by the
parties (the "Closing Date").

             1.12      Publication.  Other than as may be required by law, the
Shareholders, Buyer, Acquisition and the Company shall not issue any press
release or other public or private announcement of the transaction contemplated
by this Agreement until after this Agreement is consummated on the Closing
Date.  Any such press release or other
announcement issued on or after the Closing Date shall be mutually acceptable
to all the parties hereto.

ARTICLE 2.

Certain Effects of Merger

             2.1        Effect of Merger. Upon and after
the Effective Date, the separate existence of the Company shall cease and shall
be merged into Acquisition, with Acquisition as the Surviving Corporation
possessing all rights, privileges, immunities and franchises, public and
private, of each of the constituent corporations; and all property, real,
personal and mixed and all debts due on whatever account, including
subscriptions to shares and all other choses in action, and all and every other
interest of or belonging to or due to each of the constituent corporations
shall be taken and deemed to be transferred to and vested in the Surviving
Corporation without further act or deed; and the title to any real estate or
any interest therein, vested in any of the constituent corporations shall not
revert to or be in any way impaired by reason of the merger contemplated
herein.  The Surviving Corporation
shall, after the Effective Date, be responsible for all the liabilities and
obligations of each of the constituent corporations and any claim existing or
action or proceeding pending by or against any of such corporations may be
prosecuted or defended by the Surviving Corporation as if such merger had not
taken place.  Neither the rights of
creditors nor any liens upon the property of any of the constituent
corporations shall be impaired by the merger contemplated herein.

             2.2        Further
Assurances.  If at any time after
the Effective Date the Surviving Corporation shall consider or be advised that
any further deeds, assignments or assurances in law or any other things are
necessary, desirable or proper:

(a)         to
perfect, confirm, or record or otherwise vest, in Acquisition the title to any
property or rights of the constituent corporations acquired or to be acquired
by reason of, or as a result of the Merger; or

(b)        otherwise
to carry out the purpose of this Agreement

then the Shareholders, Acquisition and the
Company and its officers and directors shall and will execute and deliver all
such deeds, assignments and assurances in law and do all other things
necessary, desirable or proper to vest, perfect or confirm title to such
property or rights in the Surviving Corporation and otherwise to carry out the
purposes of this Agreement, and the proper officers and directors of the
constituent corporations and the Surviving Corporation are severally fully
authorized in their respective names thereof or otherwise to take any and all
such action.

ARTICLE 3.

Representations and warranties of
Shareholders and the Company

             Each
Shareholder and the Company, jointly and severally among all of them, represent
and warrant to Buyer as follows:

             3.1        Organization.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of
Illinois.  The Company has full
corporate power and authority to carry on its business as it is now being
conducted and will be conducted on the Closing Date, and to own, lease and
operate its assets, business and properties.

             3.2        Corporate Action.  All corporate action and proceedings
necessary to be taken by or on the part of the Company in connection with the
transactions contemplated by this Agreement and necessary to make the same
effective have been duly and validly taken, and this Agreement has been duly
and validly authorized, executed and delivered by the Company and constitutes
its valid and binding agreement, enforceable in accordance with and subject to
its terms, except as limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors'
rights generally and general equitable principles.

             3.3        Stock.  The Company has authorized capital stock consisting solely of
1,000 shares, no par value, of which 1,000 shares are issued and outstanding,
all of which are owned beneficially and of record by Shareholders as follows:
Eugene Borucki, 500 shares and Denis Enberg, 500 shares.  There are no shares held in the treasury of
the Company.  The Company has no
securities authorized, issued or outstanding which are convertible into or exercisable
for capital stock.  The Shares
constitute all of the outstanding shares of capital stock of the Company, have
been duly authorized and validly issued, and are fully paid and non-assessable.  Each Shareholder is the lawful owner of
record and beneficial owner of the Shares listed above and has full power and
authority to enter into and perform this Agreement, and each Shareholder
represents he owns such Shares free and clear of any security interests,
pledges, mortgages, claims, liens, and encumbrances of any kind
whatsoever.  On the date of this
Agreement, the Shareholders will cause the Company to close its stock transfer
books and the Company will not prior to the Closing record the transfer of any
such Shares.

             3.4        Subsidiaries and Qualification.  The Company does not own or hold any
interest in any partnership, proprietorship, corporation or other business
entity.  The Company has delivered to
Buyer certified and complete copies of (a) the Articles of Incorporation of the
Company and all amendments thereto, and (b) the By-laws of the Company as
currently in effect.  The Company is
duly licensed or qualified to do business and is in good standing and
authorized to do business in each state and jurisdiction in which such
licensing or qualification is required.

             3.5        Financial Statements.  The Company has delivered to Buyer copies of
the [audited] balance sheets, statements of income and statements of cash flow
of the Company as of and for the fiscal years ended December 31, 2000, December
31, 1999 and December 31 1998 (collectively, the "Year Ended
Statements"), together with balance sheets, statements of income and
equity, and statements of cash flow of the Company as of and for the
three-month period ended March 31, 2001 ("Interim Statements"). The
Year End Statements as of and for the fiscal years ended  December 31, 2000, December 31, 1999 and
December 31, 1998 are accompanied by an unqualified report of the Company's
independent certified public accountants. 
The Year End Statements and the Interim Statements are collectively
referred to herein as the "Financial Statements".

             The
Financial Statements (a) are correct and complete, contain no misstatements and
do not omit any relevant information, (b) have been prepared in accordance with
generally accepted accounting principles applied on a consistent basis and (c)
accurately present the financial condition, results of operations, changes in
equity and cash flow for the respective periods covered by the Financial
Statements.

             December
31, 2000 is sometimes referred to herein as the "Balance Sheet Date"
and the December 31, 2000 balance sheet of the Company is sometimes referred to
herein as the "December 31, 2000 Balance Sheet".

             3.6        Affiliated Transactions.  Except as described in Schedule 3.6 attached
hereto, as of the date hereof, neither a Shareholder nor any Affiliate of a
Shareholder (as defined below) is indebted to, or is a creditor of, or a
guarantor of any obligation of or a party to any contract, agreement, license,
option, commitment or other arrangement, written or oral, express or implied,
with the Company.  For purposes of this
Agreement, an "Affiliate of a Shareholder" means any spouse or
family member (including in-laws) of a Shareholder, or any corporation,
partnership or other entity in which a Shareholder (or spouse or family member)
has any equity or ownership interest exceeding twenty percent (20%) in the
aggregate.

             3.7        Licenses.  The Company and all employees of the Company
have obtained all permits, licenses and registrations necessary for the
operation of the Company in the ordinary course of business and such permits,
licenses and registrations are in full force and effect.  No material violation exists in respect of
any such license, permit or registration. 
No proceeding is pending or threatened to revoke or limit any such
license, permit or registration.

             3.8        Product Liability.          No claims or demands have been made
against the Company alleging injury to individuals or property as a result of
the ownership, possession or use of any product manufactured or sold by the
Company.  All products sold by the
Company prior to the Closing Date and all work in process produced by the
Company prior to the Closing Date are and will be of good quality, merchantable
and in compliance with the requirements of the respective purchase agreements
under which such goods are or will be sold.

             3.9        Assets.  The assets of the Company include (a) all assets and properties
real and personal, tangible and intangible, of every kind and description used
or held for use in connection with the business and operations of the Company
as a going concern, including without limitation rights under contracts and
leases, real and personal property, plant and equipment, inventories,
intangibles, trademarks, copyrights and goodwill and (b) those assets listed on
Schedule 3.9 attached hereto. 
The assets described in (a) and (b) are sometimes referred to herein as
the "Assets".  Except
as disclosed in Schedule 3.9, all of the Assets, whether real or
personal, owned or leased, are in good operating condition and repair (with the
exception of normal wear and tear) and are free from defects other than such
minor defects as do not interfere with the continued use thereof in conduct of
normal operations or adversely affect the resale value thereof.  The Assets constitute all the assets,
properties and rights which are required for the operation of the Company as it
is presently operated and has previously been operated.

             3.10      Title.

                          3.10.1   Schedule 3.10.1 attached hereto contains descriptions of
all of the real property included in the Assets (including improvements
thereon).  Except as set forth on Schedule
3.10.1, the Company has good and marketable fee title to said real property
and improvements, free and clear of all mortgages, security interests, liens,
charges or encumbrances of any nature whatsoever, other than Permitted Liens
(defined below).

                           3.10.2   Schedule 3.10.2 attached hereto
describes all real property leases or subleases included in the Assets.  Said leases and subleases are valid, binding
and enforceable in accordance with their terms, and (i) neither the Company
nor, any other landlord is in default thereunder, (ii) there are no offsets or
defenses by either the Company or any other landlord or tenant against a tenant
or landlord, respectively, and (iii) the transactions contemplated by this
Agreement will not affect or impair the terms, validity or enforceability of
any of such leases or subleases, or require the consent of any party thereto
which shall not have been obtained prior to the Closing Date.

                           3.10.3   The Company owns or leases all the furniture,
equipment, tangible personal property and leasehold improvements (the foregoing
items being listed on Schedule 3.10.3) located in the structures
referred to in Schedules 3.10.1 and 3.10.2 or otherwise included
in the Assets.  All the Assets (other
than assets or property sold or otherwise disposed of after December 31, 2000
as permitted by this Agreement) are either (i) owned free and clear of all security
interests, mortgages, pledges, liens, conditional sales agreements, leases,
encumbrances or charges of any nature whatsoever except as set forth on Schedule
3.10.3 and except for Permitted Liens, or (ii) subject to valid, binding
and enforceable leases which are listed on Schedule 3.10.3 as to which
neither party thereto is in default, there are no defenses or offsets by either
party thereto against the other, and the transactions contemplated by this
Agreement will not affect or impair the terms, validity or enforceability
thereof or require the consent of any party thereto.

                           3.10.4   All of the aforesaid real estate,
improvements, appurtenances and leasehold improvements are in compliance with
all applicable ordinances and regulations and building, zoning and other
laws.  The buildings, machinery and
equipment of the Company are in good and serviceable condition are fit for the
purposes for which they are currently being and are intended to be used.

                           3.10.5   As used herein, the term "Permitted
Liens" means liens for taxes not yet due and payable and such
imperfections of title which will not affect the marketability or the full use
and enjoyment of the affected asset for its intended purposes.  Any such Permitted Liens are listed on Schedule
3.10.5.

             3.11      Contracts.  Except for the contracts listed onSchedule 3.11 attached hereto (true
and complete copies of each such contract having previously been furnished by
Shareholders to Buyer), the Company is not a party to any contract having a
term in extending beyond, or which will not be fully performed within, 30 days
after the Closing Date, or which involves goods, services or obligations
requiring a payment in excess of $2,500.00, nor do all such contracts,
together, involve goods, services or obligations requiring an aggregate payment
of more than $7,500.00.

             The
Company has performed all obligations required to be performed, and is not in
default, under any contract to which it is a party or by which it or its
property is bound.  As of the Closing
Date the Company shall have performed all obligations and shall not be in
default under any such contract and under any contract entered into between the
date of this Agreement and the Closing Date.

             As
used in this Agreement, "contract" means any contract, lease,
agreement, arrangement, commitment or understanding, written or oral, expressed
or implied.

             3.12      Litigation and Compliance with Law.  Except as set forth on Schedule3.12 attached hereto, there are no
actions, suits or proceedings pending or threatened relating to the Company or
the Shareholders.  The Company is in
compliance with all applicable laws, statutes, regulations, orders, writs,
injunctions and decrees of any court or federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, and any applicable arbitration decisions, relating to the
Company.  There is no basis for any
claim for compensation or damage or other relief from any violation of the
foregoing except as set forth on Schedule 3.12.  All such notices regarding alleged
non-compliance and orders, writs, injunctions, decrees and arbitration
decisions are listed on Schedule 3.12 and copies of such notices,
orders, writs, injunctions, decrees and arbitration decisions have been delivered
to Buyer.

             3.13      No Defaults.  Neither the execution and delivery by
Shareholders and the Company of this Agreement nor the consummation by
Shareholders and the Company of the transactions contemplated hereby is an
event which, of itself or with the giving of notice or the passage of time or
both, constitutes a violation of or will conflict with or result in breach of
or any default under the terms, conditions or provisions of any judgment, law
or regulation to which Shareholders or the Company are subject, or of the
Company's Articles of Incorporation or By-Laws, or of any agreement or
instrument to which the Company or the Shareholders are a party or by which any
are bound, or result in the creation or imposition of any lien, charge or
encumbrance of any nature whatsoever on any of the Assets or on the Shares or
result in the acceleration of the due date of any obligation of the Company or
any Shareholder or have a material adverse effect on the business of the
Company, except as disclosed in Schedule 3.13 attached hereto.

             3.14      Changes.  Except as shown on Schedule 3.14attached hereto, since the Balance Sheet Date, the Company
has not:

                           (a)         mortgaged, pledged or subjected to lien
or any other encumbrance, any of the Assets;

                            (b)       sold
or transferred any of the Assets without replacement thereof with an asset of
equivalent kind, condition and value;

                           (c)         increased the compensation or benefits
payable or to become payable to the Company's directors, officers, employees or
agents;

                           (d)        suffered any damage, destruction or loss
(whether or not covered by insurance) or the acquisition or taking of property
by any governmental authority;

                           (e)         experienced any strike, slow-down,
picketing, lock-out or other work stoppage;

                           (f)         issued, sold, purchased or redeemed, or
agreed to issue, sell, purchase or redeem, any of the Company's capital stock
or security convertible into the Company's capital stock or any other stock,
bond, right, option or other security of the Company, or entered into any
transaction other than in the ordinary course of business;

                           (g)        borrowed any money;

                           (h)        modified any contract, nor has there
been any acceleration, termination, cancellation or adverse modification to any
contract by which the Company is bound;

                           (i)          paid or declared any dividend, or made
any other payment or distribution with respect to any of the Shares; or

                           (j)          entered in any transaction, other than
contemplated by this Agreement, not in the ordinary course of business
consistent with past practices.

             3.15      Environmental Warranties.

                           3.15.1   The Company has provided Buyer prior to the
date hereof: (i) all environmental audits, assessments or occupational health
studies and all analyses of any groundwater, soil, air or asbestos samples
taken from any facility owned or occupied by the Company undertaken by, or at
the direction of the Company or any of its employees or counsel or, any
governmental agency (collectively, the "Environmental Audits"); (ii)
all written communications between the Company and any environmental agencies
regarding property owned or used by the Company; and (iii) all Occupational
Safety and Health Administration claims made against the Company.

                           3.15.2   All action, work and other steps recommended
to be taken pursuant to the Environmental Audits, if any, have been taken.  The Company has provided Buyer with copies
of all certificates and other documents necessary to verify that all such
action, work and steps recommended to be taken under the Environmental Audits
have been taken.

                           3.15.3   No Hazardous Materials (as hereinafter
defined), friable asbestos or friable asbestos containing materials
("ACMs") are, or have been located in or about any real property
owned or leased by the Company, into the environment, or discharged, treated, managed,
recycled, placed or disposed of by the Company or any anyone else, at, on or
under any real property owned or leased by the Company, and no Hazardous
Materials or ACMs formerly located on the real property owned or leased by the
Company have been disposed of at any off-site waste disposal.

                           3.15.4   No portion of any real properties owned or
leased at any time by the Company is being used, has been used, for the
disposal, storage, recycling, treatment, processing or other handling of
Hazardous Materials.

                           3.15.5   No above ground or underground storage tanks
are located on or under any real properties currently or previously owned or
leased by the Company.

                           3.15.6   The Company has not disposed of any substance
(other than human sewage) into any plumbing or septic tank.

                           3.15.7   The Company is operating in compliance with
all applicable Environmental Laws (as hereinafter defined).

                           3.15.8   No investigation, administrative order or
notice, consent, order and agreement, litigation, settlement or environmental
claim or lien with respect to Hazardous Materials or ACMs is proposed,
threatened or in existence with respect to any real properties now or
previously owned or leased by the Company or with respect to any off-site waste
disposal to which waste relating to the operations of the Company has been
taken.

                           3.15.9   The Company has not received any summons,
citation or written notice from any person, entity or governmental agency
whatsoever concerning any violation or alleged violation of Environmental Laws
or the storage, dumping or discharge of any Hazardous Materials or ACMs arising
out of or with respect to any real properties now or previously owned or leased
by the Company.

                           3.15.10 The term "Environmental Laws" shall
mean the Federal Clean Air Act, Federal Water Pollution Control Act, Resource
Conservation and Recovery Act, Solid Waste Disposal Act, Toxic Substance
Control Act and Comprehensive Environmental Response, Compensation and
Liability Act, and any other Federal, state or local laws, regulations or other
requirements regulating or otherwise concerning Hazardous Materials or the
environment.  The term "Hazardous
Material(s)" shall mean any hazardous, toxic or dangerous substance,
pollutant, contaminant, waste or other material regulated under Environmental Laws;
ACMs; oil and petroleum products and natural gas, natural gas liquids,
liquified natural gas, and synthetic gas usable for fuel; chemicals subject to
the OSHA Hazard Communication Standard; and industrial process and pollution
control wastes whether or not hazardous within the meaning of the Federal
Resource Conversation and Recovery Act.

             3.16      Brokers.  Shareholders and the Company represent that there is no broker or
finder or similar person who would have any valid claim against the Company or
any party to this Agreement for a fee, commission or brokerage in connection
with this Agreement or the transactions contemplated hereby as a result of any
agreement, understanding or action by Shareholders or the Company.

             3.17      Employee Relations.  Except as shown on Schedule 3.17
attached hereto, there are no labor disputes, grievances, notices or other
proceedings pending or threatened, nor does a basis exist for any such dispute
or grievance between the Company on the one hand, and any employee of the
Company, on the other hand, and there are no collective bargaining units
representing any of the employees of the Company.

             3.18      Employees; Directors; Officers.  Schedule 3.18 attached hereto, lists
all employees of the Company and their respective salaries and benefits.  Schedule 3.18 also lists all
directors and officers of the Company.

             3.19      Banks, Powers of Attorney.  Schedule 3.19 attached hereto, is a
correct and complete list setting forth the name of each bank in which the
Company has an account or safe deposit box, the name of each person authorized
to draw thereon or to have access thereto, and the name of each person holding
a power of attorney from the Company.

             3.20      Insurance.  Schedule 3.20 attached hereto, is a
list and brief description of all policies of insurance (showing the name of
carrier and type of insurance) held by or on behalf of the Company.  The Company has adequate and customary
professional liability and errors and omissions insurance under valid and
enforceable policies issued by insurers of recognized responsibility.   Furthermore, its buildings, plants,
properties and operations, including but not limited to machinery, equipment
and inventories, adequately insured against loss or damage by fire and all
other hazards and risks of the character usually insured against by persons
operating similar properties in the localities where such properties are
located (including personal liability and business interruption insurance
insuring all contracts whether or not the Company has begun work pursuant to
such contracts) under valid and enforceable policies issued by insurers of
recognized responsibility.  Such
insurance coverage will be continued in full force and effect through the
Closing Date.  The Company has not been
refused any insurance by an insurance carrier to which it has applied for
insurance during the past three years. 
The Company is in compliance with all applicable requirements of its
insurance carriers.

             3.21      Indebtedness.  Schedule 3.21 attached hereto, is a
correct and complete list of all instruments, agreements or arrangements
pursuant to which the Company has borrowed any money, incurred any indebtedness
or established any line of credit or letter of credit which represents a
liability or potential liability of the Company.  True and complete copies of all such written instruments,
agreements or arrangements have previously been delivered to Buyer.

             3.22      Options, etc.  There is no outstanding right, subscription,
warrant, call, preemptive right, option or other agreement of any kind to
purchase or otherwise to receive from the Company any shares of the capital
stock or any other security of the Company and there is not outstanding
security of any kind convertible into such capital stock.

             3.23      Patents, Trademarks, etc.  Schedule 3.23 attached hereto, sets
forth a correct and complete list of all copyrights, patents, trademarks, trade
names, service marks, processes, inventions, and formulae applied for, issued
to or owned by the Company, its employees, Shareholders or directors, or under
which the Company, its employees or Shareholders are licensed or franchised or
which the Company, its employees or Shareholders license to others, all of
which are valid, in good standing and uncontested and all of which are included
in the Assets.  The Company possesses
all copyrights, patents, inventions, formulae, processes (secret or otherwise),
trademarks, trade names and service marks necessary to conduct the Company's
business as presently conducted.  The
Company has not received any notice with respect to any alleged infringement or
unlawful use of any copyright, patent, trademark, trade name, service mark,
process, invention or formula or other intangible property right owned by
others.  No shareholder, director,
officer or employee of the Company has any interest in any such copyright,
patent, trade name, trademark, service mark, process, invention or
formula.  The Company, its employees and
Shareholders have not granted any outstanding licenses or other rights to any
copyright, patent, invention, formula, process, trademark, trade name or
service mark listed on Schedule 3.23.

             3.24      Accounts Payable.  Except as set forth on Schedule 3.24
attached hereto and for liabilities contested in the normal course of business,
the Company was current on all accounts payable reflected on the March 31, 2001
Balance Sheet and will be current on all accounts payable included on the
Closing Date.  For purposes of this
Section, "current" shall mean that no such payable has been or
will have been outstanding after the due date of the invoice.

             3.25      Accounts Receivable.  The accounts receivable and unbilled work in
process of the Company as of the date hereof are listed on Schedule 3.25
hereto, and as reflected on the most recent balance sheet delivered to Buyer,
are actual and bona fide accounts receivable and unbilled work in process which
arose in the ordinary and usual course of the business, represent valid
obligations due to the Company, are collectible in the aggregate recorded
amounts thereof on the books of the Company without resort to litigation, are
not subject to defenses or set-off claims and will be fully collected in the
ordinary course within 30 days after closing.

             3.26      Inventory.  The Company has no inventory.

             3.27      Liabilities.  All liabilities, absolute or contingent, of
the Company incurred subsequent to the Balance Sheet Date have been or will
have been incurred only in the ordinary course of business, and the
Shareholders will give prompt written notice to Buyer of any single such liability
incurred subsequent to the date of this Agreement in excess of $2,500 or of any
liabilities which in the aggregate are in excess of $7,500.

             3.28      Taxes.  All federal, state, county, local and foreign tax returns,
reports and declarations of estimated tax or estimated tax deposit forms
required to be filed by the Company have been duly filed.  The Company has paid all taxes which have
become due and has paid all installments of estimated taxes due.  All taxes and other assessments and levies
which the Company is required by law to withhold or to collect have been duly
withheld and collected, and have been paid over to the proper governmental
authorities or are held by the Company in separate bank accounts for such
payment.  The Company has adequate
reserves on the Balance Sheet for the payment of all taxes of any kind, whether
disputed or not, and whether accrued, due, absolute, contingent or otherwise,
which were or which may be payable by the Company for any periods or fiscal
years prior to and including the Closing Date, including all taxes imposed
before or after the Closing Date which are attributable to any such period or
fiscal year.  Except as disclosed on Schedule
3.28 attached hereto, where such returns and reports have not been audited
and either approved or settled, there has not been any waiver or extension of
any applicable statute of limitations, and the Company has not received any
notice of deficiency or adjustment, and complete copies of such returns or
reports have been furnished to Buyer. 
Any disputes or contests by the Company regarding taxes will not have a
material adverse effect on the Company, and the Shareholders shall indemnify
and hold Buyer harmless from any loss, cost or expense, including without
limitation, any penalties or fines, incurred by the Surviving Corporation on
account of any such dispute or contest.

             3.29      Employee Plans.  The Company has no pension plans or employee
welfare benefit plans (as such terms are defined in the Employment Retirement
Income Security Act of 1974, as amended).

             3.30      No Offers of Employment.  Prior to the Closing Date and for two years
after the Closing Date, or for two years after the termination of this
Agreement, as the case may be, neither the Shareholders nor the Company will
offer employment or employ any person employed by the Buyer, except as may be
otherwise agreed in writing in advance by the Buyer.

             3.31      No Solicitation of Business; Use of
Information.  If for any reason the
transactions contemplated in this Agreement are not consummated, Shareholders
and the Company agree that for a period of two (2) years after this Agreement
is terminated, neither the Shareholders nor the Company shall (i) solicit
business from any customer of the Buyer, or (ii) use any information obtained
during the negotiation or attempted consummation of the transactions
contemplated herein for any purpose.

             3.32      Profitable Contracts.  All contracts entered into by the Company
for the furnishing of goods or services provide for payment in such amounts as
are consistent with past practice. 
Furthermore, the cost of completion for each item of work in progress
shall be less than the unpaid balance for such item of work in progress.

             3.33      Quality of Sold Products.  All products and services sold by the
Company prior to the Closing Date and all work in process produced by the
Company prior to the Closing Date are and will be of good quality, merchantable
and in compliance with the requirements of the respective purchase agreements
under which such goods and services are or will be sold.

             3.34      Notice of Refusal to Patronize or
Supply.  Neither Shareholders nor
the Company are aware or have knowledge that any of the Company’s customers or
suppliers will refuse after the Closing Date to patronize or supply, or do not
intend to patronize or supply, Acquisition or any affiliate of Buyer.

             3.35      Miscellaneous.  No representation or warranty made by
Shareholders or the Company in this Agreement, and no statement made in any
certificate, document, exhibit or schedule expressly required to be furnished
hereunder, contains or will contain any untrue statement of a fact or omits or
will omit to state any fact necessary to make such representation or warranty
or statement, in light of the circumstances under which such representation, warranty
or statement was made, not misleading to a prospective purchaser of all of the
stock of the Company.

ARTICLE 4.

Covenants of Shareholders and the Company
Pending the Closing Date

             Shareholders
and the Company covenant and agree that from the date hereof through and
including the Closing Date:

             4.1        Shareholder Approval.  Each Shareholder hereby agrees to vote in
favor of the transactions contemplated by this Agreement and will not exercise
any rights under Section 262 of the General Corporation Law or Article 11 of
the IBCA.

             4.2        Full Access and Financials.

                           4.2.1      Through the Closing Date, Buyer and its
authorized representatives will have full access during normal business hours
to all (i) properties, books, records, contracts and documents of the Company
or relating to the Company's current and former employees, customers and
suppliers and shall be able to make copies of the same and (ii) shall be
allowed to inspect and cause tests to be made of the Assets and facilities of
the Company.  Buyer shall also be
permitted to make inquiries of the Company's suppliers, customers,
representatives, accountants, legal representatives, financing sources and
others familiar with the Company and the Company's business for purposes of
deriving information concerning the Company's business.  Shareholders and the Company will make
available to Buyer and such authorized representatives all information with
respect to the affairs and business of the Company as Buyer may reasonably
request.  Nothing contained in this Section,
nor the exercise by Buyer of its rights hereunder, will relieve Shareholders or
the Company from or limit any liability which may arise out of any breach of
any representation, warranty, covenant or agreement contained in this
Agreement.  In the event Buyer is not
satisfied with the results of its inspection and due diligence pursuant to this
Section, Buyer may terminate this Agreement without any liability whatsoever to
Shareholders or the Company and shall be relieved of its obligations hereunder.

                           4.2.2     Shareholders will, within 5 days after
completion thereof, provide Buyer with copies of internally prepared balance
sheets and operating statements related to the Company for each monthly
accounting period between the date of this Agreement and the Closing Date.

             4.3        Conduct of Business.  The Company will carry on its business only
in the ordinary course and in the same manner as such business has been carried
on heretofore, and will (i) use its best efforts to do all things necessary to
preserve the assets and properties of the Company, (ii) maintain and keep the
tangible property included in the Assets in good repair, working order and
condition, and from time to time make all needful and proper repairs, renewals
and replacements and (iii) perform on a timely basis all lawful obligations to
be performed by either of them pursuant to the terms of each agreement,
contract, undertaking or commitment by which either of them is bound.

             4.4        Other Action.  Without the prior written consent of Buyer,
neither Shareholders, nor the Company will:

                           4.4.1     Issue, sell, purchase or redeem, or grant
options to purchase or otherwise agree to sell, purchase or redeem, any shares
of capital stock or any other securities of the Company;

                           4.4.2     Amend the Company's Articles of
Incorporation or by-laws;

                           4.4.3     Enter into any new line or type of
business;

                           4.4.4     Pay any obligation or liability, except to
pay, when due, obligations or liabilities reflected in the March 31, 2001
Balance Sheets or incurred since March 31, 2001 in the ordinary course of
business;

                           4.4.5     Enter into or modify any contract or lease;

                           4.4.6     Pay any bonus to or increase the
compensation payable to or any other benefits of any employee of the Company,
except as required by collective bargaining agreements previously disclosed to
Buyer;

                           4.4.7     Distribute any dividend to any Shareholder;

                           4.4.8     Enter into any contract or commitment,
incur any liability, absolute or contingent, waive any right or enter into any
other transaction, not (i) in the ordinary course of business and of the scope
and magnitude heretofore entered into, or (ii) in amount greater than $5,000;

                           4.4.9     Sell (except for sales from inventory in
the ordinary course of business), transfer, mortgage, pledge or subject any of
the Assets to any lien or encumbrance; or

                           4.4.10   Take any action after the date hereof, the
reasonably foreseeable result of which would be to cause any representation or
warranty contained in this Agreement to be or become inaccurate.

             4.5        Organization, Good Will.  The Company and Shareholders will preserve
the Company's business organizations intact, will retain their present
employees, and will use their best efforts to preserve the good will of their
suppliers, customers and others having business relations with them.

             4.6        Consents to Leases, Contracts.  With respect to all leases, licenses and
other contracts and instruments which require the consent of another party by
reason of the transactions provided for herein or related hereto, at no cost to
Buyer, Shareholders and the Company will use their best efforts to obtain or
cause to be obtained such consent, without thereby affecting or impairing the
terms or the validity or enforceability thereof.  Schedule 4.6 sets forth all leases, licenses and other
contracts and instruments which require the consent of another party by reason
of the transactions provided for herein or related hereto.

             4.7        Representations and Warranties.  The Company and the Shareholders shall give
detailed written notice to Buyer promptly upon the occurrence of or becoming
aware of: (a) the impending or threatened occurrence of any event which would
cause or constitute a breach or would have caused a breach had such event
occurred or been known to Shareholders prior to the date hereof, of any of the
Shareholders' or the Company's representations or warranties contained in this
Agreement to be untrue or be contravened, (b) any adverse development in the
condition (financial or otherwise) or operations of the Company or (c) the
failure of any condition precedent to the transactions contemplated herein.

             4.8        Corporate Action.  Shareholders and the Company will take all
necessary corporate and other action required to carry out the transactions
contemplated by this Agreement.

             4.9        Updated Schedules.  On the Closing Date, Shareholders and the
Company will furnish Buyer with revised schedules as may be necessary to make
accurate and current as of the Closing Date each of the Schedules referred to
in this Agreement; provided, however, that if such revisions have an adverse
effect on the Company or the Surviving Corporation, either individually or in
the aggregate, then the parties hereto shall agree upon an appropriate
reduction in the amount of Electric City Stock to be delivered to the Shareholders
hereunder, or Buyer shall have the right, on written notice to Shareholders, to
terminate this Agreement without liability or obligation of Buyer or
Acquisition therefor, as elected by Buyer.

ARTICLE 5.

Conditions to the Obligations of
Shareholders

             The
obligations of Shareholders under this Agreement are, at their option, subject
to the fulfillment of the following conditions prior to or at the Closing Date:

             5.1        Representations, Warranties,
Covenants.

                           5.1.1     Buyer shall have performed and complied with
each and every covenant and agreement required by this Agreement to be
performed or complied with by it prior to or at the Closing Date, other than
the delivery by Buyer of the Electric City Stock; and

                           5.1.2     Buyer shall have delivered to Shareholders
a certificate of an officer of Buyer, dated the Closing Date, certifying to the
fulfillment of the conditions set forth inSection 5.1.1.

             5.2        Employment and Option Agreements.  Buyer and Shareholders shall have entered
into an employment and option agreement in substantially the same forms as
Exhibits D-1 and D-2 attached hereto

             5.3        Opinion of Counsel.  Shareholder shall have received an opinion
of Schwartz, Cooper, Greenberger & Krauss, Chtd., counsel to Buyer, dated
the Closing Date, in the form attached to this Agreement as Exhibit E.

ARTICLE 6.

Conditions to the Obligations of Buyer

             The
obligations of Buyer under this Agreement are, at its option, subject to the
fulfillment of the following conditions prior to or at the Closing Date:

             6.1        Representations, Warranties,
Covenants.

                           6.1.1     Each of the representations and warranties
of Shareholders and the Company set forth in this Agreement or in any
certificate, document, exhibit or schedule expressly required to be furnished
by it hereunder shall have been true and accurate in all material respects as
of the date when made and, shall be deemed to be made again on and as of the
Closing Date and shall then be true and accurate in all material respects;

                           6.1.2     Shareholders and the Company shall have
performed and complied with each and every covenant and agreement required by
this Agreement to be performed or complied with by them prior to or at the
Closing Date;

                           6.1.3     Shareholders shall have delivered to Buyer
certificates of the Chief Executive Officer and the Chief Financial Officer of
the Company, dated the Closing Date, certifying to the fulfillment of the
conditions set forth in Sections 6.1.1 and 6.1.2;

             6.2        Real Estate.  Acquisition shall enter into a lease for the
real estate commonly known as 630 Bonnie Lane, Elk Grove Village, Illinois (the
"Real Estate") which is improved with a one-story brick building
containing approximately 10,000 square feet that is currently used by the
Company in its business.  The terms of
such lease shall be satisfactory to Buyer and shall provide, among other
things: (i) the gross rent for the Real Estate shall be a monthly rate of
$10,000, (ii) the term of the lease shall be three (3) years from the Closing
Date, and (iii) Buyer or Acquisition shall have an option to acquire fee title
to the Real Estate free of all liens, claims and rights of others, for a gross
price of $600,000 less the aggregate rent paid between the Closing Date and the
date of closing of such option, and otherwise will be on terms and conditions
acceptable to Buyer.

             6.3        Proceedings.  No action or proceeding not disclosed on Schedule
3.12 shall have been instituted and be pending or be threatened against
Shareholders or the Company which reasonably could be expected to have an
adverse effect on the business of the Company following the Closing Date.

             6.4        Employment.  Prior to the Closing, Buyer shall have made
arrangements satisfactory to it for employment of those employees of the
Company whom the Buyer desires to employ. 
Buyer and Shareholders shall have entered into an employment and option
agreement in substantially the same forms as Exhibits D-1 and D-2
attached hereto.

             6.5        Non-competition Agreements.  Each of the individuals listed on Schedule
6.5 attached hereto will at Closing enter into an Innovations and
Proprietary Rights Assignment Agreement in the form of Exhibit F
attached hereto.

             6.6        Proceedings.  There shall be no litigation pending or
threatened (nor shall any basis exist for any such litigation) against or
involving the Company or its business, assets or facilities, or against or
involving any Shareholder, which has, or if decided adversely to the Company or
Shareholders would be likely to have, an adverse effect, either individually or
in the aggregate, on the financial condition, business, assets, facilities,
properties or prospects of the Company's business, or upon the ability of
Shareholders to conclude the transactions contemplated in this Agreement.

             6.7        Indebtedness.  On the Closing Date, there shall be no
indebtedness owing by the Company to any of its employees, including the
Shareholders.

             6.8        Directors' Approval.  The transactions contemplated by this
Agreement shall have been approved by the Buyer's Board of Directors.

             6.9        Contractors' License.  On the Closing Date, without additional
consideration, Shareholders and the Company will cause to be assigned to Buyer
or Acquisition, as specified by Buyer, the contractor's license issued by the
City of Chicago to C Electric (an entity owned by one of the Shareholders) and
vest the benefits of such license in Acquisition or Buyer, as specified by
Buyer.  Shareholders and the Company
will cooperate with Buyer, as reasonably requested by Buyer, to effect such
assignment and vest such benefits.

             6.10      Consents to Leases, Contracts.    Acquisition shall have obtained consents
to the transfer of the leases, licenses, contracts and instruments set forth on
Schedule 4.6 or such other arrangements shall have been made so that
Acquisition shall obtain the benefits of such leases, licenses, contracts and
instruments.

             6.11      Aggregate Liability.   The aggregate liability of the Company for indebtedness and
borrowed money (including working capital loans) will not exceed $__________.

             6.12      Opinion of Counsel.  Buyer shall have received an opinion of Jess
Forrest, attorney for Shareholders and the Company, dated the Closing Date, in
the form attached to this Agreement asExhibit
G.

ARTICLE 7.

Termination

             7.1        Termination.  This Agreement may be terminated at any time
prior to the Closing Date by delivering notice to the respective parties of
such termination, but only upon the happening of the following:

                           (a)         by unanimous consent of the
Shareholders, the Company, Buyer and Acquisition;

                           (b)        by Buyer and Acquisition if any
condition in Article 6 is not satisfied prior to or on the Closing Date;

                           (c)         by Buyer and Acquisition if the revised
schedules, if any, delivered pursuant to Section 4.9 contain a revision which
may have an adverse effect on the Company or the Surviving Corporation;

                           (d)        by Buyer and Acquisition if (i) the
Closing has not taken place by August 31, 2001 and (ii) Buyer and Acquisition
have not defaulted on any of their respective obligations hereunder;

                           (e)         by the Company if (i) the Closing has
not taken place by August 31, 2001 and (ii) the Company and the Shareholders
have not defaulted on any of their respective obligations hereunder; and;

                           (f)         by the Company if any condition in
Article 5 is not satisfied.

             7.2        Effect of Termination.  If this Agreement is terminated pursuant to
Section 7.1, no party hereto shall have any liability or further obligation to
any other party to this Agreement except that any termination shall be without
prejudice to the rights of any party hereto arising out of a breach by the
other party of any covenant, agreement, representation or warranty contained in
this Agreement.

ARTICLE 8.

Buyer’s Covenants

             8.1        Payment of Account Receivables.   Buyer, Shareholders and the Company
acknowledge that an amount of receivables (not to exceed $90,000.00) owed by Buyer
to the Company (the “Buyer Receivables”) will be assigned to the Shareholders
after the date hereof.  Buyer shall pay
directly to the Shareholders the Buyer Receivables as follows:

             8.1.1     Payment of one-third (1/3) of the Buyer
Receivables shall be made from proceeds of the first drawing made after the
date of this Agreement made by Buyer under that certain Convertible Senior
Subordinated Promissory Note and Warrant Purchase Agreement (the “Note Purchase
Agreement”) dated April 18, 2001 between Buyer and Newcourt Capital USA, Inc.
(“Newcourt”), such payment to be made promptly upon the Buyer’s receipt of such
proceeds;

             8.1.2     Payment of one-third (1/3) of the Buyer
Receivables shall be made from proceeds of the first sale made for aggregate
cash proceeds equal to or exceeding $6,000,000 by Buyer of shares of the
Company’s Series A Convertible Preferred Stock, par value $0.01 per share (the
“Series A Preferred”), such payment to be made promptly upon the Buyer’s
receipt of such proceeds (such transaction is referred to as the “Series A
Preferred Transaction”);

             8.1.3     Payment of the final one-third (1/3/) of
the Buyer Receivables shall be made thirty (30) days after the date upon which
the second payment of the Buyer Receivables becomes payable hereunder.

             8.1.4     Sellers acknowledge that (i) the Buyer’s Convertible Senior
Subordinated Promissory Notes issued under the Note Purchase Agreement are and
will be convertible into shares of the Series A Preferred and agree that
conversion of any such Notes into shares of Series A Preferred shall not be
deemed to be an issuance of Series A Preferred hereunder and any amounts
payable by Buyer under any such Notes which are converted into Series A
Preferred shall not be included for purposes of determining the cash proceeds
received by Buyer in respect of any issuances of Series A Preferred and (ii)
all payments made by Buyer against receivables owed to the Company shall be
applied to the Buyer Receivables until such Buyer Receivables have been paid in
full.

             8.1.5     The Company and Shareholders agree that
until such time as the Buyer Receivables are paid in full or this Agreement is
terminated in accordance with its terms, Buyer shall not be required to make
any payments against any other receivables owing to the Company.

ARTICLE 9.

Indemnification

             9.1        Survival.  The several representations, warranties,
covenants and agreements of the parties made pursuant to this Agreement shall
be deemed to be remade on and as of the Closing Date and shall survive the
Closing Date.

             9.2        Indemnification of Buyer.  Each Shareholder and the Company jointly and
severally shall indemnify and hold Buyer, its officers, directors,
shareholders, employees, attorneys, accountants and agents (each, an "Indemnified
Party") harmless from and against any and all damages, claims, losses,
expenses, costs, obligations, and liabilities including, without limiting the
generality of the foregoing, liabilities for reasonable attorneys' fees
(collectively, "Loss and Expense"), incurred or suffered by an
Indemnified Party arising out of, relating to or resulting from any of the
following: (a) any breach of or any inaccuracy in any representation or
warranty made by the Shareholders or the Company pursuant to this Agreement;
(b) any breach of or failure by Shareholders or the Company to perform any
covenant or obligation of the Shareholders or the Company set forth in or
contemplated by this Agreement; (c) any warranty or other claim pertaining to
products produced or service performed by the Company (including predecessor
companies) on or before the Closing Date; (d) the use, operation or ownership
of any of the assets of the Company or the business or operation of the
business of the Company on or prior to the Closing Date; (e) any violation or
breach of any laws, statutes and regulations; (f) any litigation, pending suit,
claim, proceeding or cause of action, including, without limitation, those
lawsuits listed on Schedule 3.12, and including, without limitation, any
claim, cause of action, lawsuit or proceeding related thereto or arising
therefrom or from the same circumstances or set of facts as those underlying
lawsuits listed on Schedule 3.12, whether now or existing or hereafter
brought, (g) any claims by or liabilities with respect to any employee of the
Company regarding his or her employment or termination of employment by the
Company on or prior to the Closing Date, (h) accounts receivable which were not
collected by the Company or purchased from the Surviving Corporation by the
Shareholders pursuant to Section 3.25 and entered into in the ordinary course
of business; and (i) any taxes, fines, penalties or other costs or expenses
which are required to be paid as per the Illinois Department of Revenue or
Illinois Department of Employment Security in connection with bulk sales
filings.

             9.3        Notice of Claims; Procedure for
Indemnification.

                           9.3.1     If an Indemnified Party believes that it
has suffered or incurred any Loss and Expense, such Indemnified Party shall
notify the Shareholders in writing describing such Loss and Expense, the amount
thereof, if known, and the method of computation of such Loss and Expense, all
with reasonable particularity and containing a reference to the provisions of
this Agreement in respect of which such Loss and Expense shall have occurred.  If any action at law or suit in equity is
instituted by a third party with respect to which an Indemnified Party intends
to claim any liability or expense as Loss and Expense under this Article 9,
such Indemnified Party shall promptly notify Shareholders of such action or
suit.  Notwithstanding the foregoing,
the right to indemnification hereunder shall not be affected by any failure of
an Indemnified Party to give such notice or delay by an Indemnified Party in
giving such notice unless, and then only to the extent that, the rights and
remedies of the Shareholders' shall have been materially prejudiced as a result
of the failure to give, or delay in giving, such notice.

                           9.3.2     If such indemnity shall arise from the
claim of a third party, so long as the business of Acquisition is not impaired
thereby and no person suffers any liability by reason thereof, the Indemnified
Party shall permit the Shareholders to assume the defense of any such claim and
any litigation resulting from such claim with counsel satisfactory to the
Indemnified Party but at the Shareholders' expense.  Failure by Shareholders to notify an Indemnified Party of its
election to defend any such claim or action by a third party within fourteen
(14) days after notice thereof shall have been given to Shareholders shall be
deemed a waiver by Shareholders of their right to defend such claim or action.

                           9.3.3     If the Shareholders assume the defense of
such claim or litigation resulting therefrom, then counsel selected by the
Shareholders shall be subject to approval by the Indemnified Party.  Shareholders shall keep the Indemnified
Party fully informed of the status of such claims and litigation.  The Shareholders shall not, in the defense
of such claim or any litigation resulting therefrom, consent to entry of any
judgment (other than a judgment of dismissal on the merits without costs)
except with the written consent of the affected Indemnified Parties or enter
into any settlement (except with the written consent of the Indemnified Party)
which does not include as an unconditional term thereof the giving by the
claimant or a plaintiff of a release of the affected Indemnified Parties from
all liability in respect of such claim or which acts as an admission by any
Indemnified Party of a violation of any law, rule, regulation, ordinance,
policy or order.  Anything in this
Article 9 to the contrary notwithstanding, the Indemnified Party may, with
counsel of its choice and at its expense, participate in the defense of any
such claim or litigation.

                           9.3.4     If the Shareholders shall not assume the
defense of any such claim by a third party or litigation resulting therefrom
after receipt of notice from such Indemnified Party in accordance herewith, the
Indemnified Party may defend against such claim or litigation in such manner as
it deems appropriate, and unless the Shareholders shall deposit with the
Indemnified Party a sum in cash, letter of credit or bond equal to the total
amount demanded in such claim or litigation plus the Indemnified Party's reasonable
estimate of the costs of defending the same, the Indemnified Party may settle
such claim or litigation on such terms as it may deem appropriate, and the
Shareholders shall promptly reimburse the Indemnified Party for the amount of
such settlement and for all other Losses and Expenses incurred by the
Indemnified Party in connection with the defense against or settlement of such
claim or litigation.

                           9.3.5     Shareholders shall promptly pay to the
third party the amount of any final and unappealable judgment rendered with
respect to any claim by such third party in litigation and shall reimburse the
Indemnified Party and for all other Losses and Expenses incurred by the
Indemnified Party in connection with the defense against such claim or
litigation, whether or not resulting from, arising out of, or incurred with
respect to, the act of a third party.

                           9.3.6     Any payment pursuant to this Section 9.3
shall be made not later than thirty (30) days after receipt by Shareholders of
written notice from the Indemnified Party stating the amount thereof and the
indemnity payment requested.  Any
payment not made when due shall bear interest at a rate per annum equal to the
Prime Rate plus 3% per annum for each day until paid.  "Prime Rate" means the Prime rate of interest as
reported in The Wall Street Journal from time to time, changing as and
when the Prime Rate changes.

ARTICLE 10.

Miscellaneous

             10.1      Material.  For purposes of this Agreement, any item shall be deemed material
if it involves $2,500 or more or if such items in the aggregate equal or exceed
$7,500 (exclusive of costs and expenses of investigating and defending such
item, such as attorneys' fees and accountants' fees).

             10.2      Expenses.  The Shareholders and the Buyer shall bear their respective expenses
incurred in connection with the transactions contemplated by this Agreement,
including without limitation, accounting and legal fees incurred in connection
herewith.

             10.3      Shareholders' Tax Liabilities.  All income tax liabilities (whether arising
before, on or after the Closing Date) of the Shareholders shall be paid by
Shareholders as they become due.

             10.4      Assignments.  This Agreement shall not be assigned by any
party hereto without the prior written consent of the other party, except that
Buyer may assign this Agreement to an affiliate of Buyer, whereupon, Buyer
shall be released from all of its obligations, responsibilities and liabilities
hereunder.

             10.5      Further Assurances.  From time to time prior to, at and after the
Closing Date, each party will execute all such instruments and take all such
actions as the other party shall reasonably request in connection with carrying
out and effectuating the intent and purpose hereof and all transactions and
things contemplated by this Agreement, including, without limitation, the
execution and delivery of any and all confirmatory and other instruments in
addition to those to be delivered on the Closing Date, and any and all actions
which may reasonably be necessary or desirable to complete the transactions contemplated
hereby.

             10.6      Notices.  All notices, demands and other communications which may or are
required to be given hereunder or with respect hereto shall be in writing,
shall be given either by personal delivery or by recognized overnight delivery
service, and shall be deemed to have been given or made when personally
delivered, addressed as follows:

 

	 	If to Buyer:
	 	Electric City
  Corporation
	 	1280
  Landmeier Road
	 	Elk Grove
  Village, Illinois 60007
	 	Attn: Jeffrey
  Mistarz
	 	 
	 	with a copy
  to:
	 	 
	 	Schwartz,
  Cooper, Greenberger & Krauss, Chtd.
	 	180 North
  LaSalle, Suite 2700
	 	Chicago,
  Illinois 60601
	 	Attention:
  Jay S. Berlinsky
	 	 
	or to such
  other address as Buyer may from time to time designate.
	 
	 	If to
  Shareholders:
	 	 
	 	Mr. Eugene
  Borucki
	 	2429 North
  Barbary
	 	Northbrook,
  IL  60062
	 	 
	 	Mr. Denis
  Enberg
	 	150 Sherwood
  Road
	 	Elgin,
  IL  60120
	 	 
	 	with a copy
  to:
	 	 
	 	Jess Forrest,
  Esq.
	 	4970 North
  Harlem Avenue
	 	Harwood
  Heights, IL  60706
	 	Facsimile:
  708.867.3270

or to such other address as Shareholder may from
time to time designate.

             10.7      Captions.  The captions of Articles and sections of this Agreement are for
convenience only and shall not control or affect the meaning or construction of
any of the provisions of this Agreement.

             10.8      Law Governing.  This Agreement shall be governed by,
construed, and enforced in accordance with the internal laws (as opposed to the
laws of conflict) of the State of Illinois.

             10.9      Waiver of Provisions.  The terms, agreements, covenants,
representations, warranties and conditions of this Agreement may be waived only
by a written instrument executed by the party waiving compliance.  The failure of any party at any time or
times to require performance of any provision of this Agreement shall in no
manner affect the right at a later date to enforce the same.  No waiver by any party of any condition or
the breach of any provision, term, agreement, covenant, representation or
warranty contained in this Agreement in :any one or more instances shall be
deemed to be or construed as a further or continuing waiver of any such
condition or of the breach of any other provision, term, agreement, covenant,
representation or warranty.

             10.10    Counterparts.  This Agreement may be executed in several
counterparts, and all counterparts so executed shall constitute one agreement,
binding on all of the parties hereto, notwithstanding that all the parties are
not signatory to the original or the same counterpart.

             10.11    Entire Agreement.  This Agreement constitutes the entire agreement
among the parties and supersedes and cancels any and all prior agreements
between them relating to the subject matter hereof, and may not be amended
except in a writing signed by the party to be bound.

             10.12    Arbitration.  Any dispute, claim or controversy arising
under or relating to this Agreement (a "Dispute") shall be resolved
by final and binding arbitration administered by the American Arbitration
Association ("AAA") in Chicago, Illinois under its Commercial
Arbitration Rules, subject to the following:

             (a)         Any party hereto may demand that any
Dispute be submitted to binding arbitration. 
The demand for arbitration shall be in writing, shall be served on the
other parties in the manner prescribed herein for the giving of notices, and
shall set forth a statement of the factual basis for the claim, specifying the
matter or matters to be arbitrated.

             (b)        The arbitration shall be conducted by
one (1) independent arbitrator.  If the
parties cannot mutually agree on an arbitrator then the AAA shall appoint an
arbitrator.  The arbitrator shall
conduct such evidentiary or other hearings as he/she deems necessary or
appropriate and thereafter shall make his/her determination as soon as
practicable.  The arbitration shall be
conducted in accordance with the Federal Rules of Evidence, including limited
discovery by the parties as determined by the arbitrator in order to assure a
fair hearing for all parties pursuant to the Federal Rules of Civil
Procedure.  Any arbitration pursuant
hereto shall be conducted by the arbitrator under the guidance of the Federal
Rules of Civil Procedure and the Federal Rules of Evidence, but the arbitrator
shall not be required to comply strictly with such Rules in conducting any such
arbitration.

             (c)         Except as provided herein:

              (i) each party shall bear its own "Costs
and Fees", which are defined as all reasonable expenses of the
arbitration, including travel expenses, out-of-pocket expenses (including, but
not limited to, copying and telephone), witness fees, and reasonable attorneys'
fees and expenses;

             (ii)
the fees of the arbitration shall be borne equally by the adverse parties;

             (iii)
notwithstanding the foregoing, the arbitrator shall be empowered to require any
one or more of the parties to bear all or any portion of such Costs and Fees
and/or the fee and expenses of the arbitrator in the event that the arbitrator
determines such party has acted unreasonably or in bad faith

             (d)        The arbitrator shall have the authority
to award any remedy or relief that a Court of the State of Illinois could
grant, including without limitation, the imposition of sanctions for abuse or
frustration of the arbitration process.  
Such decision and award shall be in writing and counterpart copies
thereof shall be delivered to each party. 
The decision and award of the arbitrator shall be binding on all
parties.  In rendering such decision and
award, the arbitrator shall not add to, subtract from or otherwise modify the
provisions of this Agreement or other transaction documents.  Any party to the arbitration may seek to
have judgment upon the award rendered by the arbitrator entered into any court
having competent jurisdiction thereof.

             (e)          Each party hereto agrees that it will
not file any suit, motion, petition or otherwise commence any legal action or
proceeding for any matter which is required to be submitted to arbitration as
contemplated herein except in connection with an award rendered by the
arbitrator.  Upon the entry of an order
dismissing or staying any action or proceeding filed contrary to the preceding
sentence, the party which filed such action or proceeding shall promptly pay
the other party the reasonable attorneys' fees, costs and expenses incurred by
such other party relating to the entry of such order.

             10.13    Special Representation and Warranty
Indemnification Covenant. The Company and the Shareholders acknowledge that
this Agreement provides for certain information to be disclosed on Schedules
hereto in order to make the representations, warranties and covenants of the
Company and the Shareholders herein set forth true and accurate in all material
respects, as of June 7, 2001. The Company and Shareholders further acknowledge
that they have not delivered such Schedules to Buyer or Acquisition.
Accordingly, the Company and Shareholders hereby represent and warrant that
there are no existing facts or circumstances which are materially adverse to
the interests and expectations of the Buyer and Acquisition in respect of the
acquisition of the Company contemplated by this Agreement or which could
reasonably be expected to in the future materially and adversely affect the
realization by the Buyer and Acquisition of the benefits expected by them to be
derived from acquiring the Company. The Company and Shareholders further
represent and warrant the information which would be set forth in such
Schedules if such Schedules had been prepared and delivered would not disclose
any matters inconsistent with the preceding sentence. The Shareholders hereby
jointly and severally agree to indemnify, defend and hold harmless Buyer and
Acquisition for Loss and Expense incurred in respect of any facts or
circumstances which should have been disclosed to Buyer and Acquisition on a
Schedule hereto in order to make the representation, warranty or covenant to which
such Schedule relates true and correct in all material respects when made. The
foregoing indemnification covenant is in addition to, and not in lieu of, the
covenant contained in Section 9.2 hereof, subject to the limitation that Buyer
and Acquisition shall not be entitled to indemnification more than once for any
matter which may be covered by both this Section 10.13 and by Section 9.2. The
indemnification claims procedure set forth in Section 9.3 of this Agreement
shall apply with respect to this Section 10.13.

 

 

[The balance of this page has been left
blank intentionally. Signature page follows.]

             IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by
their duly authorized officers, all as of the day and year first above written.

	ELECTRIC CITY
  GREAT LAKES ACQUISITION
	CORPORATION,
  a Delaware corporation
	 
	 
	By:       /s/ John Mitola
	 	

	Its:       President
	 	

	 
	ELECTRIC CITY
  CORP.,
	a Delaware
  corporation
	 
	By:        /s/ John Mitola
	 	

	Its:        CEO
	 	

	 
	GREAT LAKES
  CONTROLED
	ENERGY
  CORPORATION,
	an Illinois
  corporation
	 
	By:       /s/ Denis Enberg
	 	

	Its:       Secretary 
	 	

	 
	 
	/s/ Eugene Borucki
	

	EUGENE
  BORUCKI
	 
	 
	/s/ Denis Enberg
	

	DENIS ENBERGPrepared by MerrillDirect

Exhibit 10.15

COMMERCIAL BUILDING LEASE

             Section 1.         Parties.                           This
Lease, dated as of this 7th, day of June 2001, is made by and
between Eugene Borucki and Denis Enberg (collectively, the “Landord”) and Great
Lakes Controlled Energy Corp., a Delaware Corporation (the “Tenant”).

             Section 2          Premises.          Landlord
does hereby lease to Tenant and Tenant hereby leases from Landlord that certain
building located at 630 Bonnie Lane, Elk Grove Village, Illinois, together with
the parking lot used by occupants of said building (hereinafter referred to as
the “Premises”).

             Section 3          Use.     Tenant
shall use the Premises for the operation of its business and ancillary office
facilities and storage and shall not use or permit the Premises to be used for
any other purpose without the prior written consent of Landlord, which consent
shall not be unreasonably withheld.

             Section 4          Base Minimum Rent.   Tenant
shall pay the Base Minimum Rent to Landlord, or to such other person or at such
other place as Landlord may direct in writing from time to time, the sum of TEN
THOUSAND ($10,000) DOLLARS per month, each in advance on or before the tenth
day of each month during the Lease Term. This is a triple-net lease with the
Tenant being required to pay all expenses in connection with the premises,
including real estate taxes.

             Section 5          Term.   The
Lease shall be in effect for a period of three years, commencing on June 7th,
2001 and ending on June 6th, 2004, unless sooner terminated as
hereinafter provided.

             Section 6          Repairs.

             6.1        By
entry hereunder, Tenant shall be deemed to have accepted the Premises as being
in good, sanitary order, condition and repair. Tenant shall, upon the
expiration or sooner termination of this Lease, surrender the Premises to
Landlord in good condition, broom clean, ordinary wear and tear excepted.

             6.2        Landlord
shall have the responsibility to make any repairs or replacements to any of the
Premises during the term of the Lease which affect the habitability of the
Premises.

             Section 7          Assignment, Subletting and Right to Purchase.

             7.1        Tenant
shall be permitted to sublease all or any part of the premises and Landlord
shall cooperate with Tenant in such efforts to sublease the premises. All
subtenants shall acknowledge that they are aware of the terms and conditions of
this Lease and that they will comply with such terms and conditions. In
addition thereto, each sublease shall provide that in the event that Tenant is
in default under the terms and conditions of this Lease, upon notice from
Landlord, the subtenant will pay all rental and other charges due to Tenant
directly to Landlord. So long as Tenant is not in default under this Lease,
Tenant shall have the right to retain all monies received from any subtenant
who has been approved pursuant to the terms of this paragraph.

             7.2        Tenant
shall not either voluntarily, or by operation of law, assign, transfer,
mortgage, pledge, hypothecate or encumber this Lease or any part thereof or any
right or privilege appurtenant thereto without first obtaining the written
consent of Landlord, except that Tenant may assign this Lease to a related
corporate entity of Tenant.

             7.3        Tenant
shall be permitted, at its option and at any time during the Term, to purchase
the Premises, free of all liens, encumbrances, claims and rights of others, for
a price of $600,000 less the aggregate sum of all rents paid through the date
of closing. This Lease shall terminate upon closing of such purchase.

             Section 8          Hold Harmless.             Tenant
shall indemnify and hold Landlord, it beneficiaries and their agents harmless
against and from any and all claims arising from Tenant’s use of the Premises
or from the conduct of its business or from any activity, work or other things
done, permitted or suffered by Tenant in or about the Premises, and shall
further indemnify and hold Landlord harmless against and from any and all
claims arising from any breach or default in the performance of any obligation
on Tenant’s part to be performed under the terms of this Lease, or arising from
any act or negligence of Tenant, or any officer, agent, employee, guest or
invitee of Tenant, and from all costs, attorneys’ fees and liabilities incurred
in or about the defense of any such claim or any action or preceding brought
thereon and in case any action or proceeding be brought against Landlord by
reason of such claim, Tenant, upon notice from Landlord, shall defend Landlord.
Tenant, as a material part of the consideration to Landlord, hereby assumes all
risk of damage to property or injury to persons in, upon or about the Premises,
from any cause other than Landlord’s sole negligence, and Tenant hereby waives
all claims in respect thereof against Landlord. Tenant shall give prompt notice
to Landlord in case of casualty or accidents in the Premises.

             Section 9          Subrogation.    As
long as their respective insurers so permit, Landlord and Tenant hereby
mutually waive their respective rights of recovery against each other for any
loss insured by fire, extended coverage and other property insurance policies
existing for the benefit of the respective parties. Each party shall apply to
their insurers to obtain such waivers. Each party shall obtain any special
endorsements, if required by their insurers, to evidence compliance with the
aforementioned waiver.

             Section 10        Utilities.            Tenant
shall pay for all water, gas, heat, light, power, sewer charges, telephone
service and all other services and utilities supplied to the premises, together
with any taxes thereon.

             Section 11        Holding Over.  If
Tenant remains in possession of the Premises or any part thereof after the
expiration of the terms hereof without the express written consent of Landlord,
such occupancy shall be a tenancy from month-to-month at a rental in the amount
of two (2) times the last monthly Base Minimum Rent, plus all other charges
payable hereunder, and upon all the terms hereof applicable to a month-to-month
tenancy.

             Section 12        Tenant’s Default.         The
occurrence of any one or more of the following events shall constitute a
default and breach of this Lease by Tenant:

             12.1      The vacating or abandonment of the entire premises by Tenant,
except by sublease or assignment;

             12.2      The failure by Tenant to make any payment of Minimum Base Rent
or any other payment required to be made by Tenant hereunder, as and when due,
where such failure shall continue for a period of ten (10) business days after
written notice thereof by Landlord to Tenant.

             12.3      The failure by Tenant to observe or perform any of the
covenants, conditions or provisions of this Lease to be observed or performed
by Tenant, other than provided in Section 12.2 herein, where such failure shall
continue for a period of thirty (30) days after written notice thereof from
Landlord to Tenant, provided, however, that if the nature of
Tenant’s default is such that more than thirty (30) days is required for its
cure, then Tenant shall not be deemed to be in default if Tenant commences such
cure within such thirty (30) day period and thereafter diligently prosecutes
such cure to completion.

             Section 13        Remedies in Default.    In
the event of any such default or breach by Tenant, Landlord may at any time
thereafter, in its sole discretion, with or without notice or demand and
without limiting Landlord in the exercise of a right or remedy which Landlord
may have by reason of such default or breach terminate Tenant’s right to
possession of the Premises by any lawful means, in which case this lease shall
terminate and Tenant shall immediately surrender possession of the Premises to
Landlord.

             Section 14        Default by Landlord.   Landlord
shall not be in default unless Landlord fails to perform obligations required
of Landlord within five (5) days after written notice by Tenant to Landlord
specifying wherein Landlord has failed to perform such obligation, provided,
however, that if the nature of Landlord’s obligation is such that more
than five (5) days is required for performance, then Landlord shall not be
deemed to be in default if Landlord commences such performance within such five
(5) day period and thereafter diligently prosecutes such cure to completion.

             Section 15        Fire, Extended Coverage and Rental Insurance.    During the term of this Lease, Tenant, at
its sole cost and expense, and for the mutual benefit of Landlord and their
agents, and Tenant, shall carry and maintain the following types of insurance in
the amounts specified:

             15.1      Fire and extended coverage insurance covering the Premises
against loss or damage by fire and against loss or damage by other risks now or
hereafter embraced by “extended coverage” in amounts sufficient to prevent
Landlord or Tenant from becoming a coinsurer under the terms of the applicable
policies. Said insurance policies are to be for the full insurable replacement
cost.

             15.2      All policies of insurance (except liability insurance) shall
provide by endorsement that any loss shall be payable to Landlord and Tenant as
their respective interests may appear. Tenant shall have the privilege of
procuring and obtaining all of such insurance through its own sources. All
proceeds of such insurance if and when received by Landlord shall be used first
to restore the Premises to the condition in which it was in prior to the
occurrence of the damage. Landlord shall not be required to rebuild beyond the
extent of the insurance proceeds.

             Section 16        Eminent Domain.          If
more than twenty-five percent (25%) of the Premises shall be taken or
apportioned by any public or quasi-public authority under the power of eminent
domain, either party hereto shall have the right, at its option, within sixty
(60) days after such taking, to terminate this Lease upon thirty (30) days
written notice. If more than twenty-five percent (25%) of the Premises are
taken (and neither party elects to terminate as herein provided), the Minimum
Base Rent thereafter to be paid shall be equitably reduced. In the event of any
taking or apportionment whatsoever, Landlord shall be entitled to any and all
awards and/or settlements which may be given and Tenant shall have no claim
against Landlord for the value of any unexpired term of this Lease.

             Section 17        Signs.  Tenant
shall have the right to affix signage to the Premises which identifies its Use.
Tenant shall comply with all laws, rules and regulations of all governmental
agencies having jurisdiction thereof and pay all permit and license fees
therefore.

             Section 18        Brokers.            Landlord
and Tenant warrant that they have had no dealings with any real estate broker
or agents in connection with the negotiation of this Lease.

             Section 19        General Provisions.

             19.1      Plats and Riders.          Clauses,
plats, riders and addenda, if any, affixed to this Lease are a part thereof.

             19.2      Waiver.             The
waiver by Landlord of any term, covenant or condition herein contained shall
not be deemed to be a waiver of such term, covenant or condition or any
subsequent breach of the same or any other term, covenant or condition herein
contained. The subsequent acceptance of rent hereunder by Landlord shall not be
deemed to be a waiver of any preceding default by Tenant of any term, covenant
or condition of this Lease, other than the failure of Tenant to pay the particular
rental so accepted, regardless of Landlord’s knowledge of such preceding
default at the time of acceptance of such rent.

             19.3      Marginal Headings.     The
marginal headings and titles to the Sections of this Lease are not a part of
the Lease and shall have no effect upon the construction or interpretation of
any part hereof.

             19.4      Time.    Time is of
the essence of this Lease and each and all of its provisions.

             19.5      Successors and Assigns.        Subject
to the assignment provisions of this Lease, the covenants and conditions herein
contained, subject to the provisions as to assignment, apply to and bind the
heirs, successors, executors, administrators and assigns of the parties hereto.

             19.6      Recordation.    Tenant
may record a Memorandum of this Lease at its cost.

             19.7      Quiet Possession.        Upon
Tenant paying the rent reserved hereunder and observing and performing all of
the covenants, conditions and provisions on Tenant’s part to be observed and
performed hereunder, Tenant shall have quiet possession of the Premises for the
entire term hereof, subject to all the provisions of this Lease.

             19.8      Prior Agreements.        This
Lease contains all of the agreements of the parties hereto with respect to any
matter covered or mentioned in this Lease, and no prior agreements or understandings
pertaining to any such matters shall be effective for any purpose. No provision
of this Lease may be amended or added to except by an agreement in writing
signed by the parties hereto or their respective successors in interest. This
Lease shall not be effective or binding on any party until fully executed by
both parties hereto.

             19.9      Inability to Perform.     This
Lease and the obligations of Tenant hereunder shall not be affected or impaired
because Landlord is unable to fulfill any of its obligations hereunder or is
delayed in doing so, if such inability or delay is caused by reason of strike,
labor troubles, acts of God or any other cause beyond the reasonable control of
Landlord.

             19.10    Cumulative Remedies. No
remedy or election hereunder shall be deemed exclusive but shall, whenever
possible, be cumulative with all other remedies at law or in equity.

             19.11    Choice of Law.              This
Lease will be governed by and construed and enforced in accordance with the
laws of the State of Illinois without giving effect to any conflicts of laws
provisions that might cause this Lease to be governed by or construed or
enforced in accordance with the laws of any other jurisdiction. Whenever
possible, each provision of this Lease shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Lease
is held to be prohibited by or invalid under applicable law, such provision
shall (a) be reformed by the parties to reflect the intent of the parties, or
(b) if reformation is not possible, be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this Lease.

             19.12    Arbitration.      In
the event of any and all disagreements and controversies arising from this
Lease, such disagreements and controversies shall be subject to binding
arbitration as arbitrated in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association (the “AAA”) in
Chicago, Illinois before one neutral arbitrator. Such arbitrator shall be
selected by mutual agreement of the parties within thirty (30) days of written
notice of said disagreement or controversy. If the parties cannot mutually
agree to an arbitrator within thirty (30) days, then the AAA shall designate
the arbitrator. Either party may apply to the arbitrator seeking injunctive
relief until the arbitration award is rendered or the controversy is otherwise
resolved. Without waiving any remedy under this agreement, either party may
also seek from any court having jurisdiction any interim or provisional relief
that is necessary to protect the rights or property of that party, pending the
establishment of the arbitral tribunal (or pending the arbitral tribunal’s
determination of the merits of the controversy). In the event of any such
disagreement or controversy, neither party shall directly or indirectly reveal,
report, publish or disclose any information relating to such disagreement or
controversy to any person, firm or corporation not expressly authorized by the
other party to receive such information or use such information or assist any
other person in doing so, except to comply with actual legal obligations of
such party, or unless such disclosure is directly related to an arbitration
proceeding as provided herein, including, but not limited to, the prosecution
or defense of any claim in such arbitration. The costs and expenses of the
arbitration (excluding attorneys’ fees) shall be paid by the non-prevailing
party or as determined by the arbitrator.

                           19.13    Notices.            All notices and communications under this Lease shall be
in writing and shall be (i) delivered in person, (ii) mailed, postage prepaid,
either by registered or certified mail, return receipt requested, or
(iii) delivered by commercial overnight express carrier, addressed in each
case as follows:

	If to Landlord:	 	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	 
	 	 	 
	If to Tenant:	 	Great Lakes Controlled Energy Corp.
	 	 	1280 Landmeier Road
	 	 	Elk Grove Village, IL  60007

 

                           19.14    Surrender and Quitclaim at End of Term.         Upon the end of the term of this Lease,
as provided herein, or any extension thereof, or sooner termination of this
Lease, Tenant shall surrender to Landlord all and in singular the Premises,
including any and all buildings or improvements constructed by Tenant upon the
Premises, in broom clean condtion, removing all materials being stored in the
parking lot, and Tenant shall execute and deliver to Landlord within five (5)
days after written demand from Landlord to Tenant, any quitclaim deed or other
document required by an reputable title company to remove this Lease from the
cloud of title to the Premises.

                           19.15    Relationship of Parties.            The relationship of the parties
hereto is that of landlord and tenant and that the provisions of this agreement
between Landlord and Tenant relating to the rent are made solely for the
purpose of providing a method whereby rental payments are to be measured and
ascertained.

 

 

[The balance of this page has been left blank
intentionally. Signature page follows.]

EXECUTED
as of the day and year first set forth above.

 

	 	LANDLORD	 
	 	/s/ Eugene Borucki	 
	 	

	 
	 	Eugene Borucki	 
	 	/s/ Denis Enberg	 
	 	

	 
	 	Denis Enberg	 
	 	 	 
	 	 	 
	 	TENANT:	 
	 	 	 
	 	Great Lakes Controlled Energy Corp.	 
	 	 	 
	 	By: /s/ Jeffrey Mistarz	 
	 	

	 
	 	Its: Treasurer

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