Document:

<Page>

                                                                 Exhibit 4.23
                             STOCK TRADING AGREEMENT

     This Stock Trading Agreement, dated as of June 4, 2002 (as may be amended
from time to time, this "AGREEMENT"), is made by Electric City Corp., a Delaware
corporation, and Richard P. Kiphart, an individual ("Kiphart").

                              W I T N E S S E T H:

     WHEREAS, Kiphart and the Company are parties to that certain Securities
Purchase Agreement, dated as of May 31, 2002 (as it may be amended from time to
time, the "SERIES C SECURITIES PURCHASE AGREEMENT"), whereby the Company has
agreed to sell and Kiphart has agreed to purchase shares of the Company's Series
C Preferred Stock (as herein defined) together with shares of the Company's
Common Stock (as defined herein) and warrants to purchase additional shares of
Series C Preferred Stock and warrants to purchase additional shares of Common
Stock; and

     WHEREAS, it is a condition precedent to the obligation of the Company to
issue and sell, and the obligation of Kiphart to purchase, such shares of Series
C Preferred Stock and Common Stock and such warrants that the Parties hereto
enter into this Agreement;

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     1.1       DEFINED TERMS. The following additional terms when used in
this Agreement, including its preamble and recitals, shall, except where the
context otherwise requires, have the following meanings, such meanings to be
equally applicable to the singular and plural forms thereof:

           "AFFILIATE" means, as applied to any Person, any other Person
     controlling, controlled by or under common control with such Person. For
     purposes of this definition, "control" (including, with correlative
     meanings, the terms "controlled by" and "under common control with"), as
     applied to any Person, shall mean the possession, directly or indirectly,
     of the power to direct or cause the direction of the management and
     policies of any such other Person, whether through the ownership of voting
     securities or by contract or otherwise. With respect to individuals, the
     term Affiliate shall also include such individuals parents, spouse,
     children or grandchildren.

           "AGREEMENT" shall have the meaning set forth in the preamble hereof.

           "AVERAGE DAILY TRADING VOLUME" with respect to any trading day, means
     the average daily trading volume of the Common Stock as reported on the
     American Stock Exchange (or, if not traded on the American Stock Exchange,
     any national securities exchange or automated quotation services on which
     the Common Stock is then listed for trading) for the twenty (20)
     consecutive trading days (as adjusted to exclude the highest

                                      - 1 -
<Page>

     and the lowest volume trading days for such twenty (20) consecutive trading
     day period) ending on the date immediately prior to such trading day.

           "BLOCK SALES" means a sale of at least 10,000 shares of Common Stock.

           "CLOSING PRICE" means the closing price of the Common Stock as
     reported on the American Stock Exchange (or, if not traded on the American
     Stock Exchange, any national securities exchange or automated quotation
     services on which the Common Stock is then listed for trading).

           "COMMON STOCK" means and includes the Company's authorized common
     stock, par value $0.0001 per share.

           "COMPANY" shall have the meaning set forth in the preamble hereof.

           "ELECTION PERIOD" shall have the meaning set forth in SECTION 2.2
     hereof.

           "MSDW" shall have the meaning set forth in SECTION 2.5 hereof.

           "PARTIES" means all of the parties that are signatories to this
     Agreement.

           "PERSON" means and includes an individual, a corporation, a limited
     liability company, an association, a partnership, a trust or estate, a
     government or any department or agency thereof.

           "QUALIFIED PRIMARY OFFERING" means a firmly underwritten primary
     registered public offering of Common Stock by the Company that raises at
     least $35 million in aggregate gross proceeds at a price of at least $5.00
     per share (as adjusted for stock splits, stock combinations and the like).

           "SALE NOTICE" shall have the meaning set forth in SECTION 2.2 hereof.

           "SERIES C PREFERRED STOCK" means shares of the Company's Series C
     Convertible Preferred Stock, $0.01 per share.

           "SERIES C SECURITIES PURCHASE AGREEMENT" means that certain
     Securities Purchase Agreement dated as of May 31, 2002 between Richard P.
     Kiphart and the Company, as it may be amended from time to time.

           "SPECIFIED INVESTORS" means and includes Newcourt Capital USA Inc., a
     Delaware corporation, EP Power Finance, L.L.C., a Delaware limited
     liability company, Morgan Stanley Dean Witter Equity Funding, Inc., a
     Delaware corporation, Originators Investment Plan, L.P, a Delaware limited
     partnership, Duke Capital Partners, LLC, a Delaware limited liability
     company, Newcourt Capital Securities, Inc., a Delaware corporation, Leaf
     Mountain Company, LLC, an Illinois limited liability company.

                                      - 2 -
<Page>

                                   ARTICLE II
                              TRADING RESTRICTIONS

     2.1   AGREEMENT FOR BENEFIT OF COMPANY AND SPECIFIED INVESTORS. Kiphart
hereby agrees that his obligations under this Agreement are for the benefit of
the Company and the Specified Investors and further agrees that the Company or
any of the Specified Investors shall be entitled to enforce Kiphart's
obligations under this Agreement.

     2.2   PUBLIC SALES. Kiphart shall be subject to the following trading
restrictions from time to time concerning his respective holdings of Common
Stock:

     (a)   During the term of this Agreement, Kiphart may not sell any of his
Common Stock into the public market before the completion of a Qualified Primary
Offering; PROVIDED, HOWEVER, that if a Qualified Primary Offering is not
completed prior to March 7, 2003, Kiphart may sell his Common Stock into the
public market, subject to the following conditions:

     (i)   the Closing Price must exceed $4.00 per share (as adjusted for stock
           splits, stock combinations and the like) for each of the twenty (20)
           consecutive trading days immediately prior to the date of sale;

     (ii)  the Average Daily Trading Volume immediately prior to the date of
           sale must exceed 150,000 shares;

     (iii) the number of shares of Common Stock sold by Kiphart on any trading
           day may not exceed five percent of the Average Daily Trading Volume;

     (iv)  the number of shares of Common Stock sold by Kiphart into the public
           market in any three-month period may not exceed fifteen percent of
           Kiphart's total holdings of Common Stock (calculated assuming the
           exercise of all rights, options and warrants to purchase Common Stock
           or securities convertible or exchangeable for shares of Common Stock,
           and the conversion or exchange of all securities convertible or
           exchangeable for Common Stock) the date of this Agreement (as
           adjusted for stock splits, stock combinations and the like); and

     (v)   Block Sales must be executed at a minimum price per share of 90% of
           the ask price as reported on the American Stock Exchange (or, if not
           traded on the American Stock Exchange, any national securities
           exchange or automated quotation services on which the Common Stock is
           then listed for trading).

     (b)   If the Company completes a Qualified Primary Offering during the
term of this Agreement, Kiphart shall comply with his obligations under any
"lock-up" agreement entered into by Kiphart in connection with such Qualified
Primary Offering. After any such "lock-up" period expires or is terminated,
Kiphart may sell his Common Stock into the public market, severally and not
jointly, subject to the following conditions:

     (i)   the number of shares of Common Stock sold by Kiphart on any trading
           day may not exceed five percent of the Average Daily Trading Volume;

                                      - 3 -
<Page>

     (ii)  the number of shares of Common Stock sold by Kiphart into the public
           market in any three-month period may not exceed twenty percent of
           Kiphart's holdings of Common Stock (calculated assuming the exercise
           of all rights, options and warrants to purchase Common Stock or
           securities convertible or exchangeable for shares of Common Stock,
           and the conversion or exchange of all securities convertible or
           exchangeable for Common Stock) on the date of this Agreement (as
           adjusted for stock splits, stock combinations and the like); and

     (iii) Block Sales must be executed at a minimum price per share of 90% of
           the ask price as reported on the American Stock Exchange (or, if not
           traded on the American Stock Exchange, any national securities
           exchange or automated quotation services on which the Common Stock is
           then listed for trading).

     2.3   PRIVATE SALES. If Kiphart intends to sell any of his shares of
Company capital stock (or securities exercisable or exchangeable for or
convertible into shares of Company capital stock) in a private transaction
(other than to an Affiliate), he shall send written notice (the "SALE NOTICE")
of such intent to each of the Specified Investors. The Sale Notice shall include
the following information:

           (a) the type of Company capital stock or other securities Kiphart
     intends to sell;

           (b) the number of shares or other securities Kiphart intends to sell;

           (c) the proposed sale price per share or per security, as applicable;
     and

           (d) any other material terms of the offer.

Each of the Specified Investors shall have two (2) business days after receipt
of the Sale Notice (the "ELECTION PERIOD") to elect to purchase the capital
stock or other securities that are the subject of the Sale Notice by giving
Kiphart written notice thereof within the Election Period, in which case the
Specified Investor(s) so electing to purchase shall complete such sale within
five (5) business days on the terms set forth in the Sale Notice. If more than
one Specified Investor elects to purchase the capital stock or other securities
set forth in the Sale Notice, then such shares or securities shall be allocated
among the Specified Investors so electing to purchase pro rata in proportion to
their respective holdings of Company Common Stock (calculated assuming the
exercise of all rights, options and warrants to purchase Common Stock or
securities convertible or exchangeable for shares of Common Stock, and the
conversion or exchange of all securities convertible or exchangeable for Common
Stock held by such Specified Investors so electing to purchase). If none of the
Specified Investors provides written notice so electing to purchase within the
Election Period, then Kiphart may sell the capital stock or other securities
that are the subject of the Sale Notice on terms no less favorable to Kiphart
than those set forth in the Sale Notice to any third party within 10 business
days of the date of the Sale Notice; PROVIDED, HOWEVER, that any sale of shares
of Company capital stock (or securities exercisable or exchangeble for or
convertible into shares of Company capital stock) to a party that is not a party
to this Agreement or a similar agreement with the Company and/or the Specified
Investors shall have as a condition to such sale that such party shall become a
party to this Agreement or such a

                                      - 4 -
<Page>

similar agreement. For purposes of SECTIONS 2.2(a)(iv) and 2.2(b)(ii), the
purchasing party's holdings with respect to the shares of capital stock or other
securities it purchases shall be the number of shares of Common Stock
(calculated assuming the exercise of all rights, options and warrants to
purchase Common Stock or securities convertible or exchangeable for shares of
Common Stock, and the conversion or exchange of all securities convertible or
exchangeable for Common Stock) purchased in the subject sale.

     2.4   TRANSFER TO AFFILIATES. Notwithstanding anything in this Agreement
to the contrary, Kiphart may freely sell or otherwise transfer any capital stock
of the Company (or securities exercisable or exchangeable for or convertible
into shares of Company capital stock) he owns to his Affiliates without such
sale or transfer being subject to the terms of this Agreement; PROVIDED,
HOWEVER, that any such Affiliate shall become a party to this Agreement and its
ownership and sales of shares of Common Stock or other securities shall be
aggregated with the Kiphart's for purposes of SECTION 2.2.

     2.5   TERM OF TRADING AGREEMENT. The term of this Agreement shall commence
on the Closing Date under the Series C Securities Purchase Agreement and
terminate September 7, 2004; PROVIDED, HOWEVER, that if a Qualified Primary
Offering is completed prior to September 7, 2004, the term of this Agreement
shall terminate at 5:00 p.m., New York time, on the eighteen (18) month
anniversary of the initial closing date of such Qualified Primary Offering.

     2.6   AMENDMENTS TO THE TRADING AGREEMENT. The Parties may amend this
Agreement only upon the prior written consent of at least three (3) out of the
following Specified Investors (i) Morgan Stanley Dean Witter Equity Funding Inc.
("MSDW") and Originators Investment Plan, L.P. ("OIP") (MSDW and OIP shall be
deemed to be a single Purchaser with MSDW acting on behalf of both such
entities); (ii) Newcourt Capital USA Inc.; (iii) EP Power Finance, L.L.C.; and
(iv) Duke Capital Partners, LLC.

                                   ARTICLE III
                               GENERAL PROVISIONS

     3.1       LEGEND ON SHARE CERTIFICATES.

           (a) All Company securities issued at the Closing (as defined in the
Series C Securities Purchase Agreement) that are subject to the terms and
provisions of ARTICLE II, in addition to such other legends as may be required
by law and any other legend required by any agreement or document executed in
connection with the Closing under the Series C Securities Purchase Agreement
shall bear the following legend:

           THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO
           SUBJECT TO CERTAIN REQUIREMENTS AS TO TRADING CONTAINED IN
           THE STOCK TRADING AGREEMENT, DATED JUNE 4, 2002, BY AND
           AMONG THE COMPANY AND CERTAIN SECURITY HOLDERS, A COPY OF
           WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

                                      - 5 -
<Page>

     (b)   Upon the termination of this Agreement, Kiphart shall be entitled to
receive, in exchange for any security bearing the legend regarding this
Agreement specifically set forth in SECTION 3.1(a), a security without such
legend.

                                   ARTICLE IV
                                  MISCELLANEOUS

     4.1   INJUNCTIVE RELIEF. It is acknowledged that it is impossible to
measure in money the damages that would be suffered if Kiphart fails to comply
with the obligations imposed on him by this Agreement and that, in the event of
any such failure, the Company and/or the Specified Investors would be
irreparably damaged and would not have an adequate remedy at law. The Company
and the Specified Investors, severally, shall, therefore, be entitled to
injunctive relief and/or specific performance to enforce such obligations of
Kiphart, and if any action should be brought in equity to enforce any of such
provisions of this Agreement, Kiphart shall not raise the defense that there is
an adequate remedy at law.

     4.2   GOVERNING LAW. Except as to matters governed by the General
Corporation Law of the State of Delaware and decisions thereunder of the
Delaware courts applicable to Delaware corporations, which shall be governed by
such laws and decisions, this Agreement shall be construed and enforced in
accordance with, and the rights of the Parties (and, to the extent they are
beneficiaries hereof, the Specified Investors) shall be governed by, the laws of
the State of New York.

     4.3   ENTIRE AGREEMENT; WAIVER. This Agreement contains the entire
agreement among the Parties hereto with respect to the subject matter hereof. No
waiver of any term or provision shall be effective unless in writing signed by
the Party to be charged, and, if so required, the required Specified Investors
in accordance herewith.

     4.4   BINDING EFFECT. This Agreement shall be binding on and inure to the
benefit of the Parties and, subject to the terms and provisions hereof, their
respective legal representatives, successors and assigns. This Agreement shall
also inure to the benefit of the Specified Investors.

     4.5   INVALIDITY OF PROVISION. The invalidity or unenforceability of any
provision of this Agreement in any jurisdiction shall not affect the validity or
enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of this Agreement, including that provision, in any
other jurisdiction.

     4.6   COUNTERPARTS. This Agreement may be executed in two or more
counterparts, all of which shall be deemed but one and the same instrument and
each of which shall be deemed an original, and it shall not be necessary in
making proof of this Agreement to produce or account for more than one such
counterpart.

     4.7   NOTICES. All notices, consents and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given when
(a) delivered by hand, (b) sent by telecopier (with receipt confirmed), provided
that a copy is mailed by certified or registered mail, return receipt requested,
or (c) when received by the addressee, if sent by Express Mail, Federal Express
or other express delivery service (receipt requested), in each case to the
appropriate addresses and telecopier numbers set forth below (or to such other
addresses

                                      - 6 -
<Page>

and telecopier numbers as a Party may designate as to itself by notice to the
other Party):

     (i)   If to the Company:   1280 Landmeier Road
                                Elk Grove Village, IL 60007-2410
                                Fax No. 847-437-4969
                                Attention: General Counsel

     (ii)  If to Kiphart: at the address set forth in the Series C Securities
Purchase Agreement.

     4.8   HEADINGS. The descriptive headings of the several paragraphs of this
Agreement are inserted for convenience only and do not constitute part of this
Agreement.

       [Balance of page intentionally left blank; signature page follows.]

                                      - 7 -
<Page>

     IN WITNESS WHEREOF, the Parties hereto have executed this Stock Trading
Agreement as of the day and year first above written.

                                           ELECTRIC CITY CORP.

                                           By:     /s/ John P. Mitola
                                              --------------------------------
                                           Name:   John P. Mitola
                                                ------------------------------
                                           Title:  CEO
                                                 -----------------------------

                                           /s/ Richard P. Kiphart
                                           -----------------------------------
                                           Richard P. Kiphart

                                      - 8 -<Page>

                                                                Exhibit 10.41

                  SERIES C CONVERTIBLE PREFERRED STOCK WARRANT

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED,
QUALIFIED, APPROVED OR DISAPPROVED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH LAWS AND NEITHER THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER FEDERAL OR STATE REGULATORY
AUTHORITY HAS PASSED ON OR ENDORSED THE MERITS OF THESE SECURITIES.

THE SERIES C CONVERTIBLE PREFERRED STOCK ISSUABLE UPON THE EXERCISE OF THE
SECURITIES REPRESENTED HEREBY AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF
SUCH SERIES C CONVERTIBLE PREFERRED STOCK ARE SUBJECT TO AN INVESTOR RIGHTS
AGREEMENT, A STOCKHOLDERS AGREEMENT AND A STOCK TRADING AGREEMENT, AS EACH OF
THE SAME MAY BE AMENDED FROM TIME TO TIME, COPIES OF WHICH ARE AVAILABLE FOR
INSPECTION AT THE PRINCIPAL OFFICES OF THE COMPANY.

                                                                  WARRANT NO. 07

                               WARRANT CERTIFICATE

           TO PURCHASE SHARES OF SERIES C CONVERTIBLE PREFERRED STOCK,

                            PAR VALUE $0.01 PER SHARE

                                       OF

                               ELECTRIC CITY CORP.

          THIS IS TO CERTIFY THAT RICHARD P. KIPHART or his registered assigns
(the "HOLDER"), is the owner of 50,000 warrants (the "WARRANTS"), each of which
entitles the registered Holder thereof to purchase from Electric City Corp., a
Delaware corporation (the "COMPANY"), one fully paid, duly authorized and
nonassessable share of Series C Convertible Preferred Stock, par value $0.01 per
share (the "SERIES C PREFERRED STOCK"), of the Company at any time or from time
to time on or before 5:00 p.m., New York City time, on the Warrant Expiration
Date, at an exercise price of $10.00 per share, subject to adjustment from time
to time as set forth herein (the "EXERCISE PRICE"), all on the terms and subject
to the conditions hereinafter set forth.

          The number of shares of Series C Preferred Stock issuable upon
exercise of each Warrant (the "NUMBER ISSUABLE") shall be determined for each
Warrant by dividing $10.00 by the Exercise Price in effect at the time of such
exercise, and is initially one (1) share of Series C Preferred Stock.
Capitalized terms used herein but not otherwise defined shall have the

<Page>

meanings given them in SECTION 13 hereof or, if not therein defined, in the
Securities Purchase Agreement.

          SECTION 1.   EXERCISE OF WARRANTS. Subject to the last paragraph of
this SECTION 1, the Warrants evidenced hereby may be exercised, in whole or in
part, by the registered Holder hereof at any time or from time to time, on or
before 5:00 p.m., New York City time, on the Warrant Expiration Date upon
delivery to the Company at the principal executive office of the Company in the
United States of America, of (a) this Warrant Certificate, (b) a written notice
stating that such Holder elects to exercise the Warrants evidenced hereby in
accordance with the provisions of this SECTION 1 and specifying the number of
Warrants being exercised and the name or names in which such Holder wishes the
certificate or certificates for shares of Series C Preferred Stock to be issued
and (c) payment of the Exercise Price for the shares of Series C Preferred Stock
issuable upon exercise of such Warrants, which shall be payable by any one or
any combination of the following: (i) cash or (ii) certified or official bank
check payable to the order of the Company. The documentation and consideration
delivered in accordance with clauses (a), (b) and (c) of this paragraph above
are collectively referred to herein as the "WARRANT EXERCISE DOCUMENTATION."

          As promptly as practicable, and in any event within two (2) Business
Days after receipt of the Warrant Exercise Documentation, the Company shall
deliver or cause to be delivered certificates representing the number of validly
issued, fully paid and nonassessable shares of Series C Preferred Stock issuable
in connection with such exercise, and if less than the full number of Warrants
evidenced hereby are being exercised, a new Warrant Certificate or Certificates,
of like tenor, for the number of Warrants evidenced by this Warrant Certificate,
less the number of Warrants then being exercised; PROVIDED, HOWEVER, that no new
Warrant Certificate need be delivered if the Warrant Expiration Date has
occurred. Such exercise shall be deemed to have been made at the close of
business on the date of delivery of the Warrant Exercise Documentation so that
the Person entitled to receive shares of Series C Preferred Stock upon such
exercise shall be treated for all purposes as having become the record holder of
such shares of Series C Preferred Stock at such time.

          The Company shall pay all expenses in connection with, and all taxes
and other governmental charges (other than income taxes of the Holder) that may
be imposed in respect of the issue or delivery of any shares of Series C
Preferred Stock issuable upon the exercise of the Warrants evidenced hereby. The
Company shall not be required, however, to pay any tax or other charge imposed
in connection with any transfer involved in the issue of any certificate for
shares of Series C Preferred Stock in any name other than that of the registered
Holder of the Warrants evidenced hereby.

          In connection with the exercise of any Warrants evidenced hereby, at
the Company's option, no fractions of shares of Series C Preferred Stock shall
be issued, but in lieu thereof the Company may elect to pay a cash adjustment in
respect of such fractional interest in an amount equal to any such fractional
interest multiplied by $10.00 per share of Series C Preferred Stock. If more
than one such Warrant shall be exercised by the Holder thereof at the same time,
the number of full shares of Series C Preferred Stock issuable on such exercise
shall be computed on the basis of the total number of Warrants so exercised.

                                        2
<Page>

          SECTION 2.   ADJUSTMENTS.

          (a)  SUBDIVISION OR COMBINATION OF STOCK OR STOCK DIVIDENDS. In case
the Company shall at any time subdivide its outstanding shares of Series C
Preferred Stock into a greater number of shares, by split or otherwise, or issue
additional shares of Series C Preferred Stock as a dividend (other than as a
dividend in respect of the outstanding Series C Preferred Stock in accordance
with Section 3 of the Certificate of Designations (as defined in the Securities
Purchase Agreement)), or make any other distribution upon any class or series of
stock payable in shares of common stock or Convertible Securities of the
Company, the Exercise Price in effect immediately prior to such subdivision
shall be proportionately reduced and, conversely, in case the outstanding shares
of Series C Preferred Stock of the Company shall be combined into a smaller
number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased.

          (b)  REORGANIZATION; RECLASSIFICATION; CONSOLIDATION; MERGER OR SALE
OF ASSETS. In case of any capital reorganization or reclassification or other
change of outstanding shares of Series C Preferred Stock (other than a change in
par value, or from par value to no par value, or from no par value to par value,
or as a result of a subdivision or combination), or in case of any consolidation
or merger of the Company with or into another Person (other than a consolidation
or merger in which the Company is the resulting or surviving person and that
does not result in any reclassification or change of outstanding Series C
Preferred Stock) (any of the foregoing, a "TRANSACTION"), the Company, or such
successor or purchasing Person, as the case may be, shall execute and deliver to
each Holder of the Warrants evidenced hereby, at least five (5) Business Days
prior to effecting any of the foregoing Transactions, a certificate that the
Holder of each such Warrant then outstanding shall have the right thereafter to
exercise such Warrant into the kind and amount of shares of stock or other
securities (of the Company or another issuer) or property or cash receivable
upon such Transaction by a holder of the number of shares of Series C Preferred
Stock into which such Warrant could have been exercised immediately prior to
such Transaction (or, if the Series C Preferred Stock did not participate in any
such Transaction, the kind and amount of shares of stock or other securities (of
the Company or another issuer) or property or cash receivable upon such
Transaction by a holder of the number of shares of Common Stock into which such
Series C Preferred Stock could have been converted immediately prior to such
Transaction). Such certificate shall provide for adjustments that shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
SECTION 2 and shall contain other terms identical to the terms hereof. If, in
the case of any such Transaction, the stock, other securities, cash or property
receivable thereupon by a holder of Series C Preferred Stock (or, if applicable,
by a holder of Common Stock issuable upon conversion of the Series C Preferred
Stock) includes shares of stock or other securities of a Person other than the
successor or purchasing Persons and other than the Company, who controls or is
controlled by the successor or purchasing Person or who, in connection with such
Transaction, issues stock, securities, other property or cash to holders of
Series C Preferred Stock or Common Stock, then such certificate also shall be
executed by such Person, and such Person shall, in such certificate,
specifically assume the obligations of such successor or purchasing Person and
acknowledge its obligations to issue such stock, securities, other property or
cash to Holders of the Warrants upon exercise thereof as provided above. The
provisions of this SECTION 2(b) similarly shall apply to successive
Transactions.

                                        3
<Page>

          (c)  SPECIAL DISTRIBUTIONS. In the event that the Company shall
declare a dividend or make any other distribution (including, without
limitation, in cash, in notes or other debt securities or in capital stock
(which shall include, without limitation, any options, warrants or other rights
to acquire capital stock) of the Company), whether or not pursuant to a
stockholder rights plan, "poison pill" or similar arrangement (but excluding any
dividend or distribution that results in an adjustment to the Exercise Price
pursuant to SECTION 2(a)), in other property or assets, to holders of Series C
Preferred Stock (a "SPECIAL DISTRIBUTION"), then the Board of Directors shall
set aside the amount of such dividend or distribution that each Holder of
Warrants would have been entitled to receive had it exercised such Warrants
prior to the record date for such dividend or distribution. Upon the exercise of
a Warrant evidenced hereby, the Holder shall be entitled to receive such
dividend or distribution that such Holder would have received had such Warrant
been exercised immediately prior to the record date for such dividend or
distribution.

          SECTION 3.   NOTICE OF CERTAIN EVENTS. In case at any time or from
time to time the Company shall declare any dividend or any other distribution to
the holders of its Series C Preferred Stock or Common Stock, or shall authorize
the granting to the holders of its Series C Preferred Stock or Common Stock of
rights or warrants to subscribe for or purchase any additional shares of stock
of any class or any other right, or shall authorize the issuance or sale of any
other shares or rights that would result in an adjustment to the Exercise Price
pursuant to SECTION 2(a) or would result in a Special Distribution described in
SECTION 2(c), or there shall be any capital reorganization or reclassification
of the Series C Preferred Stock or Common Stock or consolidation or merger of
the Company with or into another Person, or any sale or other disposition of all
or substantially all the assets of the Company, or there shall be a voluntary or
involuntary dissolution, liquidation or winding up of the Company, then, in any
one or more of such cases the Company shall mail to each Holder of the Warrants
evidenced hereby at such Holder's address as it appears on the transfer books of
the Company, as promptly as practicable but in any event at least ten (10)
Business Days prior to the applicable date hereinafter specified, a notice
stating (a) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights or warrants or, if a record is not to be taken,
the date as of which the holders of Series C Preferred Stock or Common Stock of
record to be entitled to such dividend, distribution, rights or warrants are to
be determined, (b) the issue date of such dividend, distribution, rights or
warrants and (c) the date on which such reorganization, reclassification,
consolidation, merger, sale, disposition, dissolution, liquidation or winding up
is expected to become effective. Such notice also shall specify the date as of
which it is expected that the holders of Series C Preferred Stock or Common
Stock of record shall be entitled to exchange their Series C Preferred Stock or
Common Stock for shares of stock or other securities or property or cash
deliverable upon such reorganization, reclassification, consolidation, merger,
sale, disposition, dissolution, liquidation or winding up.

          SECTION 4.   CERTAIN COVENANTS. The Company will at all times reserve
and keep available, free from preemptive rights, out of the aggregate of its
authorized but unissued Series C Preferred Stock or its authorized and issued
Series C Preferred Stock held as "treasury shares", for the purpose of enabling
it to satisfy any obligation to issue Series C Preferred Stock upon exercise of
the Warrants, the maximum number of shares of Series C Preferred Stock that may
then be deliverable upon the exercise of all outstanding Warrants. The Company
shall take all action required to increase the authorized number of shares of
Series C Preferred Stock if at

                                        4
<Page>

any time there shall be insufficient authorized but unissued shares of Series C
Preferred Stock to permit such reservation or to permit the exercise of all
outstanding Warrants.

          The Company or, if appointed, the transfer agent for the Series C
Preferred Stock (the "TRANSFER AGENT") and every subsequent transfer agent for
any shares of the Company's capital stock issuable upon the exercise of any of
the rights of purchase aforesaid will be irrevocably authorized and directed at
all times to reserve such number of authorized shares as shall be required for
such purpose. The Company will keep a copy of this Warrant Certificate on file
with the Transfer Agent and with every subsequent transfer agent for any shares
of the Company's capital stock issuable upon the exercise of the rights of
purchase represented by the Warrants.

          Before taking any action that would cause an adjustment pursuant to
SECTION 2 hereof to reduce the Exercise Price below the then par value (if any)
of the Series C Preferred Stock, the Company will take any corporate action that
may, in the opinion of its counsel (which may be counsel employed by the
Company), be necessary in order that the Company may validly and legally issue
fully paid and nonassessable Series C Preferred Stock at the Exercise Price as
so adjusted.

          The Company covenants that all Series C Preferred Stock that may be
issued upon exercise of the Warrants will, upon issue, be validly issued, fully
paid, nonassessable, free of preemptive rights and free from all taxes, liens,
charges and security interests with respect to the issue thereof.

          SECTION 5.   REGISTERED HOLDER. The person in whose name this Warrant
Certificate is registered shall be deemed the owner hereof and of the Warrants
evidenced hereby for all purposes.

          SECTION 6.   TRANSFER OF WARRANTS. Any transfer of the rights
represented by this Warrant Certificate shall be effected by the surrender of
this Warrant Certificate, along with the form of assignment attached hereto,
properly completed and executed by the registered Holder hereof, at the
principal executive office of the Company in the United States of America.
Thereupon, the Company shall issue in the name or names specified by the
registered Holder hereof and, in the event of a partial transfer, in the name of
the registered Holder hereof, a new Warrant Certificate or Certificates
evidencing the right to purchase such number of shares of Series C Preferred
Stock as shall be equal to the number of shares of Series C Preferred Stock then
purchasable hereunder.

          SECTION 7.   RESTRICTIVE LEGEND. Each certificate representing the
Series C Preferred Stock issued upon exercise of this Warrant shall be stamped
or otherwise imprinted with a legend in the following form (in addition to any
legend required under applicable state securities laws):

           THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
           BEEN REGISTERED, QUALIFIED, APPROVED OR DISAPPROVED UNDER
           THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
           LAWS OF ANY STATE

                                        5
<Page>

           AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT
           PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
           ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE
           EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT OR
           SUCH LAWS AND NEITHER THE UNITED STATES SECURITIES AND
           EXCHANGE COMMISSION NOR ANY OTHER FEDERAL OR STATE
           REGULATORY AUTHORITY HAS PASSED ON OR ENDORSED THE MERITS
           OF THESE SECURITIES.

           THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO AN
           INVESTOR RIGHTS AGREEMENT, A STOCKHOLDERS AGREEMENT AND A
           STOCK TRADING AGREEMENT, AS EACH OF THE SAME MAY BE AMENDED
           FROM TIME TO TIME, COPIES OF WHICH ARE AVAILABLE FOR
           INSPECTION AT THE PRINCIPAL OFFICES OF THE COMPANY.

Said legends shall be removed by the Company, upon the request of the Holder
hereof, at such time as the restrictions on the transfer of the applicable
security under applicable securities laws and the obligations imposed on the
Holder hereof under the Investor Rights Agreement, Stockholders Agreement and
Stock Trading Agreement, as applicable, shall have terminated.

          SECTION 8.   DENOMINATIONS. The Company will, at its expense, promptly
upon surrender of this Warrant Certificate at the principal executive office of
the Company in the United States of America, execute and deliver to the
registered Holder hereof a new Warrant Certificate or Certificates in
denominations specified by such Holder for an aggregate number of Warrants equal
to the number of Warrants evidenced by this Warrant Certificate.

          SECTION 9.   REPLACEMENT OF WARRANTS. Upon receipt of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant Certificate and, in the case of loss, theft or destruction, upon
delivery of an indemnity reasonably satisfactory to the Company (in the case of
an insurance company or other institutional investor, its own unsecured
indemnity agreement shall be deemed to be reasonably satisfactory), or, in the
case of mutilation, upon surrender and cancellation thereof, the Company will
issue a new Warrant Certificate of like tenor for a number of Warrants equal to
the number of Warrants evidenced by this Warrant Certificate.

          SECTION 10.  GOVERNING LAW. Except as to matters governed by the
General Corporation Law of the State of Delaware and decisions thereunder of the
Delaware courts applicable to Delaware corporations, which shall be governed by
such laws and decisions, this Warrant Certificate shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the laws of the State of New York applicable to agreements made and to be
performed entirely within such State.

          SECTION 11.  RIGHTS INURE TO REGISTERED HOLDER. The Warrants evidenced
by this Warrant Certificate will inure to the benefit of and be binding upon the
registered Holder hereof and the Company and their respective successors and
permitted assigns. Nothing in this

                                        6
<Page>

Warrant Certificate shall be construed to give to any Person other than the
Company and the registered Holder and their respective successors and permitted
assigns any legal or equitable right, remedy or claim under this Warrant
Certificate, and this Warrant Certificate shall be for the sole and exclusive
benefit of the Company and such registered Holder. Nothing in this Warrant
Certificate shall be construed to give the registered Holder hereof any rights
as a holder of shares of Series C Preferred Stock or Common Stock until such
time, if any, as the Warrants evidenced by this Warrant Certificate are
exercised in accordance with the provisions hereof.

          SECTION 12.  NOTICE. All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be given
by registered or certified first-class mail, return receipt requested,
nationally recognized overnight delivery service or personal delivery, (a) if to
the Holder, at the Holder's last known address appearing on the books of the
Company; and (b) if to the Company, at its principal executive office in the
United States located at the address designated for notices in the Securities
Purchase Agreement, or such other address as shall have been furnished to the
party given or making such notice, demand or other communication. All such
notices and communications shall be deemed to have been duly given: when
delivered by hand, if personally delivered; when delivered if delivered by a
nationally recognized overnight delivery service; and five (5) Business Days
after being deposited in the mail, as aforesaid, postage prepaid, if mailed.

          SECTION 13.  DEFINITIONS. For the purposes of this Warrant
Certificate, the following terms shall have the meanings indicated below:

          "BUSINESS DAY" means any day other than a Saturday, Sunday or other
day on which commercial banks in the City of New York are authorized or required
by law or executive order to close.

          "COMPANY" shall have the meaning set forth in the preamble hereof.

          "SERIES C PREFERRED STOCK" shall have the meaning set forth in the
preamble hereof.

          "CONVERTIBLE SECURITIES" means any rights to subscribe for or to
purchase, or any options or warrants for the purchase of, Series C Preferred
Stock or any stock, notes or securities convertible into or exchangeable for
Series C Preferred Stock.

          "EXERCISE PRICE" shall have the meaning set forth in the preamble
hereof.

          "HOLDER" shall have the meaning set forth in the preamble.

          "NUMBER ISSUABLE" shall have the meaning set forth in the preamble.

          "PERSON" means any individual, corporation, limited liability company,
partnership, trust, incorporated or unincorporated association, joint venture,
joint stock company, government (or an agency or political subdivision thereof)
or other entity of any kind.

          "SECURITIES PURCHASE AGREEMENT" means that certain Securities Purchase
Agreement, dated as of May 31, 2002, by the Company and Richard P. Kiphart, as
the same may be amended, modified or otherwise supplemented from time to time in
accordance with its terms.

                                        7
<Page>

          "SPECIAL DISTRIBUTION" shall have the meaning set forth in SECTION
2(c) hereof.

          "TRANSACTION" shall have the meaning set forth in SECTION 2(b) hereof.

          "TRANSFER AGENT" shall have the meaning set forth in SECTION 4 hereof.

          "WARRANTS" shall have the meaning set forth in the preamble hereof.

          "WARRANT EXERCISE DOCUMENTATION" shall have the meaning set forth in
SECTION 1 hereof.

          "WARRANT EXPIRATION DATE" means June 4, 2003.

                            [SIGNATURE PAGE FOLLOWS]

                                        8
<Page>

          IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed as of the Closing Date (as defined in the Securities Purchase
Agreement).

                                           COMPANY

                                           ELECTRIC CITY CORP.,
                                           a Delaware corporation

                                           By:  /s/ John P. Mitola
                                              -------------------------------
                                           Name:    John P. Mitola
                                                -----------------------------
                                           Title:   CEO
                                                 ----------------------------

ATTEST:

 /s/ Greg Rice
-----------------------------

                                        9
<Page>

                             Form of Assignment Form

                  [To be executed upon assignment of Warrants]

          The undersigned hereby assigns and transfers unto ___________________,
whose Social Security Number or Tax ID Number is ____________________ and whose
record address is ___________________________________ the rights represented by
the attached Warrant Certificate with respect to ___ Warrants to which the
attached Warrant Certificate relates, and irrevocably appoints _________________
as agent to transfer this security on the books of the Company. Such agent may
substitute another to act for such agent.

                                        Signature:

                                        ----------------------------------------
                                        (Signature must conform in all respects
                                        to name of holder as specified on the
                                        face of the Warrant Certificate)

                                        Signature Guarantee:

                                        ----------------------------------------

Date:
     ----------------------------

<Page>

               (SUBSCRIPTION FORM TO BE EXECUTED UPON EXERCISE OF
                          SOME OR ALL OF THE WARRANTS)

          The undersigned, registered Holder, successor or assignee of such
     registered Holder of the within Warrant Certificate, hereby:

          (a) subscribes for ___ shares of Series C Preferred Stock which the
     undersigned is entitled to purchase under the terms of the within Warrant
     Certificate, (b) makes the full cash payment therefor called for by the
     within Warrant Certificate, and (c) directs that the Series C Preferred
     Stock issuable upon exercise of said Warrants be issued as described
     hereunder.

                                           -------------------------------------
                                           (Name)

                                           -------------------------------------
                                           (Address)

                                           -------------------------------------
                                           SIGNATURE

Dated:
        -------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]