Document:

Loan and Security Agreement, dated June 8, 2005

 Exhibit 10.8 
 Partners for Growth 
 Loan and Security Agreement 
  

			
	Borrower:	  	Comverge, Inc.
	Address:	  	4497 Park Drive, Norcross, GA 30093
		
	Borrower:	  	6D Comverge, Inc.
	Address:	  	4497 Park Drive, Norcross, GA 30093
		
	Date:	  	June 8, 2005

 THIS LOAN AND SECURITY AGREEMENT (“Agreement”) is entered into on the above date between PARTNERS
FOR GROWTH, L.P. (“PFG”), whose address is 180 Pacific Avenue, San Francisco, CA 94111 and the borrowers named above (jointly and severally, the `Borrower”), whose chief executive office is located at the above address
(“Borrower’s Address”). The Schedule to this Agreement (the “Schedule”) being signed by the parties concurrently, is an integral part of this Agreement. (Definitions of certain terms used in this Agreement are set forth in
Section 7 below.) 
 1. LOANS. 
 1.1 Loan. PFG will make a loan to Borrower (the “Loan”) in the amount shown on the Schedule, provided no Default or Event of Default has occurred and is continuing. 
 1.2 Interest. All Loans and, to the extent due and unpaid, all other monetary Obligations shall bear interest at the rate shown on the
Schedule, except where expressly set forth to the contrary in this Agreement. Interest shall be payable monthly, on the first day of each month for interest accrued during the prior month. 
 1.3 Fees. Borrower shall pay PFG the fees shown on the Schedule, which are in addition to all interest and other sums payable to PFG and
are not refundable. 
 1.4 [INTENTIONALLY LEFT BLANK] 
 1.5 Late Fee. If any payment of accrued interest for any month is not made within three business days after the date a bill therefore is
sent by PFG to Borrower, or if any payment of principal or any other payment is not made within three Business Days after the date due, Borrower shall pay PFG a late payment fee equal to 5% of the amount of such late payment. The provisions of this
paragraph shall not be construed as PFG’s consent to Borrower’s failure to pay any amounts when due, and PFG’s acceptance of any such late payments shall not restrict PFG’s exercise of any remedies arising out of any such
failure. 
 2. SECURITY INTEREST. 
 2.1 Grant of Security Interest. To secure the payment and performance of all of the Obligations when due, Borrower hereby grants to PFG a security interest in all of the following (collectively, the
“Collateral”): all right, title and interest of Borrower in and to all of the following, whether now owned or hereafter arising or acquired and wherever located: all Accounts; all Inventory; all Equipment; all Deposit Accounts; all General
Intangibles (including without limitation all Intellectual Property); all Investment Property; all Other Property; and any and all claims, rights and interests in any of the above, and all guaranties and security for any of the above, and all
substitutions and replacements for, additions, accessions, attachments, accessories, and improvements to, and proceeds (including proceeds of any insurance policies, proceeds of proceeds and claims against third parties) of, any and all of the
above, and all Borrower’s books relating to any and all of the above. PFG expressly agrees to subordinate its security interest in Collateral to any Senior Lender to Borrower. 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

 3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER. 
 In order to induce PFG to enter into this Agreement and to make Loans, Borrower represents and warrants to PFG as follows, and Borrower covenants that the
following representations will continue to be true, and that Borrower will at all times comply with all of the following covenants, throughout the term of this Agreement and until all Obligations have been paid and performed in full: 
 3.1 Corporate Existence and Authority. Borrower is and will continue to be, duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation. Borrower is and will continue to be qualified and licensed to do business in all jurisdictions in which any failure to do so would result in a Material Adverse Change. The execution, delivery and
performance by Borrower of this Agreement, and all other documents contemplated hereby (i) have been duly and validly authorized, (ii) are enforceable against Borrower in accordance with their terms (except as enforcement may be limited by
equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors’ rights generally), and (iii) do not violate Borrower’s articles or certificate of incorporation, or Borrower’s
by-laws, or any law or any material agreement or instrument which is binding upon Borrower or its property, and (iv) do not constitute grounds for acceleration of any material indebtedness or obligation under any agreement or instrument
which is binding upon Borrower or its property. 
 3.2 Name; Trade Names and Styles. As of the date hereof, the name of
Borrower set forth in the heading to this Agreement is its correct name, as set forth in its Articles or Certificate of Incorporation. Listed in the Representations are all prior names of Borrower and all of Borrower’s present and prior trade
names as of the date hereof. Borrower shall give PFG 30 days’ prior written notice before changing its name or doing business under any other name. Borrower has complied, and will in the future comply, in all material respects, with all laws
relating to the conduct of business under a fictitious business name, if applicable to Borrower. 
 3.3 Place of Business; Location of
Collateral. As of the date hereof, the address set forth in the heading to this Agreement is Borrower’s chief executive office. In addition, as of the date hereof, Borrower has places of business and Collateral is located only at the
locations set forth in the Representations. Borrower will give PFG at least 30 days prior written notice before opening any additional place of business, changing its chief executive office, or moving any of the Collateral to a location other than
Borrower’s Address or one of the locations set forth in the Representations, except that Borrower may maintain sales offices in the ordinary course of business at which not more than a total of $10,000 fair market value of Equipment is located.

 3.4 Title to Collateral, Perfection; Permitted Liens. 
 (a) Borrower is now, and will at all times in the future be, the sole owner of all the Collateral, except for items of Equipment which are leased to
Borrower. The Collateral now is and will remain free and clear of any and all liens, charges, security interests, encumbrances and adverse claims, except for Permitted Liens. PFG now has, and will continue to have, a first-priority perfected and
enforceable security interest in all of the Collateral, subject only to the Permitted Liens, and Borrower will at all rimes defend PFG and the Collateral against all claims of others. 
 (b) Borrower has set forth in the Representations all of Borrower’s Deposit Accounts, and Borrower will give PFG five Business Days advance
written notice before establishing any new Deposit Accounts and will cause the institution where any such new Deposit Account is maintained to execute and deliver to PFG a control agreement in form sufficient to perfect PFG’s security interest
in the Deposit Account, subject to the rights of the Senior Lender, and otherwise satisfactory to PFG in its good faith business judgment. 
 (c) In the event that Borrower shall at any time after the date hereof have any commercial tort claims against others, which it is asserting, and in which the potential recovery exceeds $100,000, Borrower shall promptly notify PFG
thereof in writing and provide PFG with such information regarding the same as PFG shall request (unless providing such information would waive the Borrower’s attorney-client privilege). Such notification to PFG shall constitute a grant of a
security interest in the commercial tort claim and all proceeds thereof to PFG, subject to the rights of the Senior Lender, and Borrower shall execute and deliver all such documents and take all such actions as PFG shall request in connection
therewith. 
 (d) Except for digital control units affixed to dwellings and commercial structures in the ordinary course of
Borrower’s business in connection with virtual peaking contracts with its customers (“DCUs”), none of the Collateral now is or will be affixed to any real property in such a manner, or with such intent, as to become a fixture.
Borrower is not and will not become a lessee under any real property lease pursuant to which the lessor may obtain any rights in any of the Collateral and no such lease now prohibits, restrains, impairs or will prohibit, restrain or impair
Borrower’s right to remove any Collateral from the leased premises, except to the extent such rights and lease provisions have been waived by the lessor or expressly subordinated to PFG’s security interest. Whenever any Collateral is
located upon premises in which any third party has an interest (other than DCU’s), Borrower shall, whenever requested by PFG, use commercially reasonable efforts to cause such 
  

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 third party to execute and deliver to PFG, in form acceptable to PFG, such waivers and subordinations as PFG shall
specify in its good faith business judgment. Borrower will keep in full force and effect, and will comply with all material terms of, any lease of real property where any of the Collateral now or in the future may be located. 
 3.5 Maintenance of Collateral. Borrower will maintain the Collateral in good working condition (ordinary wear and tear excepted), and
Borrower will not use the Collateral for any unlawful purpose. Borrower will immediately advise PFG in writing of any material loss or damage to the Collateral. 
 3.6 Books and Records. Borrower has maintained and will maintain at Borrower’s Address complete and accurate books and records, comprising an accounting system in accordance with GAAP. 

3.7 Financial Condition, Statements and Reports. All financial statements now or in the future delivered to PFG have been, and will be,
prepared in conformity with GAAP and now and in the future will fairly present the results of operations and financial condition of Borrower in all material respects, in accordance with GAAP, at the times and for the periods therein stated. Between
the last date covered by any such statement that is prior to the date hereof provided to PFG and the date hereof, there has been no Material Adverse Change. 
 3.8 Tax Returns and Payments; Pension Contributions. Borrower has timely filed, and will timely file, all required tax returns and reports, and Borrower has timely paid, and will timely pay, all foreign,
federal, state and local taxes, assessments, deposits and contributions now or in the future owed by Borrower. Borrower may, however, defer payment of any of the foregoing which are contested by Borrower in good faith, provided that Borrower
(i) contests the same by appropriate proceedings promptly and diligently instituted and conducted, (ii) notifies PFG in writing of the commencement of, and any material development in, the proceedings, and (iii) posts bonds or takes
any other steps required to keep the same from becoming a lien upon any of the Collateral. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and
payable by Borrower. Borrower has paid, and shall continue to pay all amounts necessary to fund all present and future pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not and will not withdraw
from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the
Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 3.9 Compliance with Law. Borrower
has, to the best of its knowledge, complied, and will comply, in all material respects, with all provisions of all foreign, federal, state and local laws and regulations applicable to Borrower, including, but not limited to, those relating to
Borrower’s ownership of real or personal property, the conduct and licensing of Borrower’s business, and all environmental matters. 
 3.10 Litigation. There is no claim, suit, litigation, proceeding or investigation pending or (to best of Borrower’s knowledge) threatened against or affecting Borrower in any court or before any governmental agency (or any
basis therefor known to Borrower) which could reasonably be expected to result, either separately or in the aggregate, in any Material Adverse Change. Borrower will promptly inform PFG in writing of any claim, proceeding, litigation or investigation
in the future threatened or instituted against Borrower involving any single claim of $50,000 or more, or involving $100,000 or more in the aggregate. 
 3.11 Use of Proceeds. All proceeds of all Loans shall be used solely for lawful business purposes. Borrower is not purchasing or carrying any “margin stock” (as defined in Regulation U of
the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan will be used to purchase or carry any “margin stock” or to extend credit to others for the purpose of purchasing or carrying any “margin
stock.” 
 3.12 No Default. At the date hereof, no Default or Event of Default has occurred, and no Default or Event
of Default will have occurred after giving effect to any Loans being made concurrently herewith. 
 4. ADDITIONAL DUTIES OF BORROWER.

 4.1 Financial and Other Covenants. Borrower shall at all times comply with the financial and other covenants set forth in
the Schedule. 
 4.2 Remittance of Proceeds. Subject to the rights of the Senior Lender, all proceeds arising from the
disposition of any Collateral shall be delivered, in kind, by Borrower to PFG in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, to be applied to the Obligations in such order as
PFG shall determine; provided that, if no Default or Event of Default has occurred and is continuing, Borrower shall not be obligated to remit to PFG (i) the proceeds of Accounts arising in the ordinary course of business, or (ii) the
proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of 
  

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 $100,000 or less (for all such transactions in any fiscal year). Borrower agrees that it will not commingle proceeds
of Collateral with any of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and in an express trust for PFG, except as set forth above, and subject to the rights of the Senior
Lender. Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement. 
 4.3
Insurance. Borrower shall, at all times insure all of the tangible personal property Collateral and carry such other business insurance, with insurers reasonably acceptable to PFG, in such form and amounts as PFG may reasonably require and
as are customary and in accordance with standard practices for Borrower’s industry and locations, and Borrower shall provide evidence of such insurance to PFG. All such insurance policies shall name PFG as an additional loss payee, and shall
contain a lenders loss payee endorsement in form reasonably acceptable to PFG. Upon receipt of the proceeds of any such insurance, subject to the rights of the Senior Lender, PFG shall apply such proceeds in reduction of the Obligations as PFG shall
determine in its good faith business judgment, except that, provided no Default or Event of Default has occurred and is continuing, PFG shall release to Borrower insurance proceeds with respect to Equipment totaling less than $100,000, which shall
be utilized by Borrower for the replacement of the Equipment with respect to which the insurance proceeds were paid. PFG may require reasonable assurance that the insurance proceeds so released will be so used. If Borrower fails to provide or pay
for any insurance, PFG may, but is not obligated to, obtain the same at Borrower’s expense. Borrower shall promptly deliver to PFG copies of all material reports made to insurance companies. 
 4.4 Reports; Notices. Borrower, at its expense, shall provide PFG with the written reports set forth in the Schedule, and such other
written reports with respect to Borrower (including budgets, projections, operating plans and other financial documentation), as PFG shall from time to time specify in its good faith business judgment. Borrower shall provide PFG advance written
notice of any proposed Merger. 
 4.5 Access to Collateral, Books and Records. At reasonable times, and on five Business
Day’s notice, PFG, or its agents, shall have the right to inspect the Collateral, and the right to audit and copy Borrower’s books and records. The foregoing inspections and audits shall be at Borrower’s expense and the charge
therefor shall be $750 per person per day (or such higher amount as shall represent PFG’s then current standard charge for the same), plus reasonable out-of-pocket expenses. Notwithstanding the foregoing, if no Default or Event of Default has
occurred and is continuing, PFG shall be entitled to one such inspection at Borrower’s expense during any 12-month period. Borrower shall not be required to disclose to PFG any document or information (i) where disclosure is prohibited by
applicable law or any agreement binding on Borrower, or (ii) is subject to attorney-client or similar privilege or constitutes attorney work product. If Borrower is withholding any information under the preceding sentence, it shall so advise
PFG in writing, giving PFG a general description of the nature of the information withheld. 
 4.6 Negative Covenants. Except
as may be permitted in the Schedule, Borrower shall not, without PFG’s prior written consent (which shall be a matter of its good faith business judgment), do any of the following: 
 (i) [INTENTIONALLY LEFT BLANK]; 
 (ii)
acquire any assets, except in the ordinary course of business, or make any Investments other than Permitted Investments; 
 (iii)
[INTENTIONALLY LEFT BLANK]; 
 (iv) sell or transfer any Collateral (including without limitation and sale or transfer of Collateral which is
then leased back by Borrower), except for (A) the sale of finished Inventory in the ordinary course of Borrower’s business (or the sale of component inventory to Borrower’s contract manufacturers for the purpose of manufacturing
finished inventory and in the ordinary course of business), and except for the sale of obsolete or unneeded Equipment in the ordinary course of business, (B) the making or Permitted Investments, (C) the granting of Permitted Liens, and
(D) the non-exclusive licensing of Intellectual Property in the ordinary course of business; 
 (v) store any Inventory or other
Collateral with any warehouseman or other third party, unless there is in place a bailee agreement in such form as PFG shall specify in its good faith business judgment; 
 (vi) sell any Inventory on a sale-or-return, guaranteed sale, consignment, or other contingent basis; 
 (vii) make any loans of any money or other assets, other than Permitted Investments; 
 (viii) incur any Indebtedness, other than
Permitted Indebtedness; 
 (ix) guarantee or otherwise become liable with respect to the obligations of another party or entity; 

(x) pay or declare any dividends on Borrower’s stock (except for dividends payable solely in stock of Borrower); 
  

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 (xi) redeem, retire, purchase or otherwise acquire, directly or indirectly, any of Borrower’s
stock, other than the purchase of shares of Common Stock from strategic partners, lessors, service providers, lenders, employees, officers, directors and consultants or other persons performing services to the Company who acquired such shares
directly from the Company, if each such purchase is made pursuant to contractual rights held by the Company relating to (x) rights of first refusal or (y) severance of relationship or termination of employment whereby the Company is
entitled to repurchase shares at a purchase price that does not exceed the original issue price paid to the Company for such shares; (xii) engage, directly or indirectly, in any business other than the businesses currently engaged in by
Borrower or reasonably related thereto; or 
 (xiii) dissolve or elect to dissolve. 
 Transactions permitted by the foregoing provisions of this Section are only permitted if no Default or Event of Default would occur as a result of such transaction.

 4.7 Litigation Cooperation. Should any third-party suit or proceeding be instituted by or against PFG with respect to any
Collateral or relating to Borrower, Borrower shall, without expense to PFG, make available Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that PFG may deem them reasonably necessary in order to
prosecute or defend any such suit or proceeding; provided, however, the foregoing shall not apply to any litigation brought by Borrower against PFG. 
 4.8 Changes. Borrower agrees to notify PFG in writing of any changes in the information set forth in the Representations. 
 4.9 Further Assurances. Borrower agrees, at its expense, on request by PFG, to execute all documents and take all actions, as PFG, may, in its good faith business judgment, deem necessary or useful in
order to perfect and maintain PFG’s perfected first-priority security interest in the Collateral (subject to Permitted Liens), and in order to fully consummate the transactions contemplated by this Agreement. 
 5. TERM. 
 5.1 Maturity
Date. This Agreement shall continue in effect until the maturity date set forth on the Schedule (the “Maturity Date”), subject to Sections 5.2 and 5.3 below. 
 5.2 Early Termination. This Agreement may be terminated prior to the Maturity Date as follows: (i) by Borrower, as set forth in the
Schedule; or (ii) by PFG at any time after the occurrence and during the continuance of an Event of Default, without notice, effective immediately. 
 5.3 Payment of Obligations. On the Maturity Date or on any earlier effective date of termination, Borrower shall pay and perform in full all Obligations, whether evidenced by installment notes or
otherwise, and whether or not all or any part of such Obligations are otherwise then due and payable. Notwithstanding any termination of this Agreement, all of PFG’s security interests in all of the Collateral and all of the terms and
provisions of this Agreement shall continue in full force and effect until all Obligations have been paid and performed in full; provided that PFG may, in its sole discretion, refuse to make any further Loans after termination. No termination shall
in any way affect or impair any right or remedy of PFG, nor shall any such termination relieve Borrower of any Obligation to PFG, until all of the Obligations have been paid and performed in full. Upon payment and performance in full of all the
Obligations and termination of this Agreement, PFG shall promptly terminate its financing statements with respect to the Borrower and deliver to Borrower such other documents as may be required to fully terminate PFG’s security interests.

 5.4 Acceleration. Borrower may enter into a merger, consolidation of other form of business combination (“Merger”)
provided; however, that if, as a result of such Merger, Borrower is not the surviving entity or Borrower’s shareholders do not own at least 51% of the new entity’s voting securities, PFG shall have the right to accelerate the payment of
principal and accrued interest. 
 6. EVENTS OF DEFAULT AND REMEDIES. 
 6.1 Events of Default. The occurrence of any of the following events shall constitute an “Event of Default” under this Agreement,
and Borrower shall give PFG immediate written notice thereof: 
 (a) Any warranty, representation, statement, report or certificate made or
delivered to PFG by Borrower in connection with this Agreement or any other agreement between Borrower and PFG entered into contemporaneously with this Agreement or any of Borrower’s officers, employees or agents, now or in the future, shall be
untrue or misleading in a material respect when made or deemed to be made; or 
 (b) Borrower shall fail to pay any Loan or any interest
thereon or any other monetary Obligation within three Business Days after the date due; or 
  

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 (c) Borrower shall breach any of the provisions of Section 4.6 hereof, or shall fail to perform
any other non-monetary Obligation which by its nature cannot be cured, or shall fail to permit PFG to conduct an inspection or audit as provided in Section 4.5 hereof or shall fail to provide PFG with reports due under Section 6 of the
Schedule within five Business Days after the date due; or 
 (d) Borrower shall fail to perform any other non-monetary Obligation, which
failure is not cured within five Business Days after the date due; or 
 (e) any levy, assessment, attachment, seizure, lien or encumbrance
(other than a Permitted Lien) is made on all or any part of the Collateral which is not cured within 10 days after the occurrence of the same; or 
 (f) any default or event of default occurs under any obligation secured by a Permitted Lien, which is not cured within any applicable cure period or waived in writing by the holder of the Permitted Lien; or 
 ( g) Borrower breaches any material contract or obligation, which has resulted or reasonably may be expected to result in a Material Adverse Change; or
(h) Dissolution, termination of existence, insolvency or business failure of Borrower; or appointment of a receiver, trustee or custodian, for all or any part of the property of, assignment for the benefit of creditors by, or the commencement
of any proceeding by Borrower under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect, or Borrower shall generally not pay its
debts as they become due, or Borrower shall conceal, remove or transfer any part of its property, with intent to hinder, delay or defraud its creditors, or make or suffer any transfer of any of its property which may be fraudulent under any
bankruptcy, fraudulent conveyance or similar law; or 
 (i) the commencement of any proceeding against Borrower or any guarantor of any of
the Obligations under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect, which is not cured by the dismissal thereof within 75
days after the date commenced; or 
 (j) revocation or termination of, or limitation or denial of liability upon, any guaranty of the
Obligations or any attempt to do any of the foregoing, or commencement of proceedings by any guarantor of any of the Obligations under any bankruptcy or insolvency law; or 
 (k) revocation or termination of, or limitation or denial of liability upon, any pledge of any certificate of deposit, securities or other property or
asset of any kind pledged by any third party to secure any or all of the Obligations, or any attempt to do any of the foregoing, or commencement of proceedings by or against any such third party under any bankruptcy or insolvency law; or 

(1) Borrower makes any payment on account of any Indebtedness or obligation which has been subordinated to the Obligations (other than as permitted in
the applicable subordination agreement), or if any Person who has subordinated such indebtedness or obligations terminates or in any way limits his subordination agreement; or 
 (m) a Material Adverse Change shall occur. 
 6.2 Remedies. Upon the occurrence and during the continuance of any Event of Default, and at any time thereafter, PFG, at its option, and without notice or demand of any kind (all of which are hereby expressly waived by
Borrower), may do any one or more of the following: (a) Cease making Loans or otherwise extending credit to Borrower under this Agreement or any other Loan Document; (b) Accelerate and declare all or any part of the Obligations to be
immediately due, payable, and performable, notwithstanding any deferred or installment payments allowed by any instrument evidencing or relating to any Obligation; (c) Take possession of any or all of the Collateral wherever it may be found,
and for that purpose Borrower hereby authorizes PFG without judicial process to enter onto any of Borrower’s premises without interference to search for, take possession of, keep, store, or remove any of the Collateral, and remain on the
premises or cause a custodian to remain on the premises in exclusive control thereof, without charge for so long as PFG deems it necessary, in its good faith business judgment, in order to complete the enforcement of its rights under this Agreement
or any other agreement; provided, however, that should PFG seek to take possession of any of the Collateral by court process, Borrower hereby irrevocably waives: (i) any bond and any surety or security relating thereto required by any statute,
court rule or otherwise as an incident to such possession; (ii) any demand for possession prior to the commencement of any suit or action to recover possession thereof; and (iii) any requirement that PFG retain possession of, and not
dispose of, any such Collateral until after trial or final judgment; (d) Require Borrower to assemble any or all of the Collateral and make it available to PFG at places desig- nated by PFG which are reasonably convenient to PFG and Borrower,
and to remove the Collateral to such locations as PFG may deem advisable; (e) Complete the processing, manufacturing or repair of any Collateral prior to a disposition thereof and, for such purpose and for the purpose of removal, PFG shall have
the right to use Borrower’s premises, vehicles, hoists, lifts, cranes, and other Equipment and all other property without charge; (f) Sell, lease or otherwise dispose of any of the 
  

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 Collateral, in its condition at the time PFG obtains possession of it or after further manufacturing, processing or
repair, at one or more public and/or private sales, in lots or in bulk, for cash, exchange or other property, or on credit, and to adjourn any such sale from time to time without notice other than oral announcement at the time scheduled for sale.
PFG shall have the right to conduct such disposition on Borrower’s premises without charge, for such time or times as PFG deems reasonable, or on PFG’s premises, or elsewhere and the Collateral need not be located at the place of
disposition. PFG may directly or through any affiliated company purchase or lease any Collateral at any such public disposition, and if permissible under applicable law, at any private disposition. Any sale or other disposition of Collateral shall
not relieve Borrower of any liability Borrower may have if any Collateral is defective as to title or physical condition or otherwise at the time of sale; (g) Demand payment of, and collect any Accounts and General Intangibles comprising
Collateral and, in connection therewith, Borrower irrevocably authorizes PFG to endorse or sign Borrower’s name on all collections, receipts, instruments and other documents, to take possession of and open mail addressed to Borrower and remove
therefrom payments made with respect to any item of the Collateral or proceeds thereof, and, in PFG’s good faith business judgment, to grant extensions of time to pay, compromise claims and settle Accounts and the like for less than face value;
(h) Exercise any and all rights under any present or future control agreements relating to Deposit Accounts or Investment Property; and (i) Demand and receive possession of any of Borrower’s federal and state income tax returns and
the books and records utilized in the preparation thereof or referring thereto. All reasonable attorneys’ fees, expenses, costs, liabilities and obligations incurred by PFG with respect to the foregoing shall be added to and become part of the
Obligations, shall be due on demand, and shall bear interest at a rate equal to the highest interest rate applicable to any of the Obligations. Without limiting any of PFG’s rights and remedies, from and after the occurrence and during the
continuance of any Event of Default, the interest rate applicable to the Obligations shall be increased by an additional four percent per annum (the “Default Rate”). 
 6.3 Standards for Determining Commercial Reasonableness. Borrower and PFG agree that a sale or other disposition (collectively,
“sale”) of any Collateral which complies with the following standards will conclusively be deemed to be commercially reasonable: (i) Notice of the sale is given to Borrower at least ten days prior to the sale, and, in the case of a
public sale, notice of the sale is published at least five days before the sale in a newspaper of general circulation in the county where the sale is to be conducted; (ii) Notice of the sale describes the collateral in general, non-specific
terms; (iii) The sale is conducted at a place designated by PFG, with or without the Collateral being present; (iv) The sale commences at any time between 8:00 a.m. and 6:00 p.m.; (v) Payment of the purchase price in cash or by
cashier’s cheek or wire transfer is required; (vi) With respect to any sale of any of the Collateral, PFG may (but is not obligated to) direct any prospective purchaser to ascertain directly from Borrower any and all information concerning
the same. PFG shall be free to employ other methods of noticing and selling the Collateral, in its discretion, if they are commercially reasonable. 
 6.4 Power of Attorney. Upon the occurrence and during the continuance of any Event of Default, without limiting PFG’s other rights and remedies, Borrower grants to PFG an irrevocable power of attorney coupled with an
interest, authorizing and permitting PFG (acting through any of its employees, attorneys or agents) at any time, at its option, but without obligation, with or without notice to Borrower, and at Borrower’s expense, to do any or all of the
following, in Borrower’s name or otherwise, but PFG agrees that if it exercises any right hereunder, it will do so in good faith and in a commercially reasonable manner: (a) Execute on behalf of Borrower any documents that PFG may, in its
good faith business judgment, deem advisable in order to perfect and maintain PFG’s security interest in the Collateral, or in order to exercise a right of Borrower or PFG, or in order to fully consummate all the transactions contemplated under
this Agreement, and all other Loan Documents; (b) Execute on behalf of Borrower, any invoices relating to any Account, any draft against any Account Debtor and any notice to any Account Debtor, any proof of claim in bankruptcy, any Notice of
Lien, claim of mechanic’s, materialman’s or other lien, or assignment or satisfaction of mechanic’s, materialman’s or other lien; (c) Take control in any manner of any cash or non-cash items of payment or proceeds of
Collateral; endorse the name of Borrower upon any instruments, or documents, evidence of payment or Collateral that may come into PFG’s possession; (d) Endorse all checks and other forms of remittances received by PFG; (e) Pay,
contest or settle any lien, charge, encumbrance, security interest and adverse claim in or to any of the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; (f) Grant extensions of time to
pay, compromise claims and settle Accounts and General Intangibles for less than face value and execute all releases and other documents in connection therewith; (g) Pay any sums required on account of Borrower’s taxes or to secure the
release of any liens therefor, or both; (h) Settle and adjust, and give releases of, any insurance claim that relates to any of the Collateral and obtain payment therefor; (i) Instruct any third party having custody or control of any books
or records belonging to, or relating to, Borrower to give PFG the same rights of access and other rights with respect thereto as PFG has under this Agreement; and 0) Take any action or pay any sum required of Borrower pursuant to this Agreement and
any other Loan Documents. Any and all reasonable sums paid and any and all reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by PFG with respect to the foregoing shall be added to and become part of he
Obligations, shall be payable on demand, and shall bear interest at a rate equal to the highest interest rate applicable to any of the Obligations. In no event shall PFG’s rights under the foregoing power of attorney or any of PFG’s other
rights under this Agreement be deemed to indicate that PFG is in control of the business, management or properties of Borrower. 
  

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		 	Partners for Growth	 	Loan and Security Agreement

  

 6.5 Application of Proceeds. All proceeds realized as the result of any sale of the
Collateral shall be applied by PFG first to the reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by PFG in the exercise of its rights under this Agreement, second to the interest due upon any of the Obligations,
and third to the principal of the Obligations, in such order as PFG shall determine in its sole discretion. Any surplus shall be paid to Borrower or other persons legally entitled thereto; Borrower shall remain liable to PFG for any deficiency. If,
PFG, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, PFG shall have the option, exercisable at any time, in its good faith business
judgment, of either reducing the Obligations by the principal amount of purchase price or deferring the reduction of the Obligations until the actual receipt by PFG of the cash therefor. 
 6.6 Remedies Cumulative. In addition to the rights and remedies set forth in this Agreement, PFG shall have all the other rights and
remedies accorded a secured party under the Code and under all other applicable laws, and under any other instrument or agreement now or in the future entered into between PFG and Borrower, and all of such rights and remedies are cumulative and none
is exclusive. Exercise or partial exercise by PFG of one or more of its rights or remedies shall not be deemed an election, nor bar PFG from subsequent exercise or partial exercise of any other rights or remedies. The failure or delay of PFG to
exercise any rights or remedies shall not operate as a waiver thereof, but all rights and remedies shall continue in full force and effect until all of the Obligations have been fully paid and performed. 
 7. DEFINITIONS. As used in this Agreement, the following terms have the following meanings: 
 “Account Debtor” means the obligor on an Account. 
 “Accounts” means all present and future “accounts” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be
made, and includes without limitation all accounts receivable and other sums owing to Borrower. 
 “Affiliate” means, with
respect to any Person, a relative, partner, shareholder, director, officer, or employee of such Person, or any parent or subsidiary of such Person, or any Person controlling, controlled by or under common control with such Person. 
 “Business Day” means a day on which PFG is open for business. 
 “Code” means the Uniform Commercial Code as adopted and in effect in the State of California from time to time. 
 “Collateral” has the meaning set forth in Section 2 above. 
 “continuing” and “during the continuance of” when used with reference to a Default or Event of Default means that the
Default or Event of Default has occurred and has not been either waived in writing by PFG or cured within any applicable cure period. 
 “Default” means any event which with notice or passage of time or both, would constitute an Event of Default. 
 “Default Rate” has the meaning set forth in Section 6.2 above. 
 “Deposit Accounts” means
all present and future “deposit accounts” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all general and special
bank accounts, demand accounts, checking accounts, savings accounts and certificates of deposit. 
 “Equipment” means all
present and future “equipment” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods,
vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “Event of Default” means any
of the events set forth in Section 6.1 of this Agreement. 
 “GAAP” means generally accepted accounting principles
consistently applied. 
 “General Intangibles” means all present and future “general intangibles” as defined in
the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all Intellectual Property, payment intangibles, royalties, contract rights, goodwill,
franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently
or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 
  

 -8- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

 “good faith business judgment” means honesty in fact and good faith (as defined in
Section 1201 of the Code) in the exercise of PFG’s business judgment. 
 “including” means including (but not
limited to). 
 “Indebtedness” means (a) indebtedness for borrowed money or the deferred purchase price of property or
services (other than trade payables arising in the ordinary course of business), (b) obligations evidenced by bonds, notes, debentures or other similar instruments, (c) reimbursement obligations in connection with letters of credit, and
(d) capital lease obligations. 
 “Intellectual Property” means all present and future: (a) copyrights, copyright
rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, (b) trade secret rights, including all rights to unpatented inventions and
know-how, and confidential information; (c) mask work or similar rights available for the protection of semiconductor chips; (d) patents, patent applications and like protections including without limitation improvements, divisions,
continuations, renewals, reissues, extensions and continuations-in-part of the same; (e) trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are registered, and all applications to register and
registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by any such trademarks; (f) computer software and computer software products; (g) designs and design rights;
(h) technology; (i) all claims for damages by way of past, present and future infringement of any of the rights included above; and 6) all licenses or other rights to use any property or rights of a type described above. 
 “Inventory” means all present and future “inventory” as defined in the California Uniform Commercial Code in effect on the
date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without
limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” means any beneficial ownership interest in any Person (including any stock, partnership interest or other equity or debt
securities issued by any Person), and any loan, advance or capital contribution to any Person. 
 “Investment Property”
means all present and future investment property, securities, stocks, bonds, debentures, debt securities, partnership interests (to the extent they are “securities” under Articles 8 of the UCC), limited liability company interests (to the
extent they are “securities” under Articles 8 of the UCC), options, security entitlements, securities accounts, commodity contracts, commodity accounts, and all financial assets held in any securities account or otherwise, and all options
and warrants to purchase any of the foregoing, wherever located, and all other securities of every kind, whether certificated or uncertificated. 
 “LIBOR” means the rate quoted by the Wall Street Journal (or such other nationally recognized rate quoting service reasonably acceptable to PFG) for U.S. Dollar-denominated loans as the London Interbank Offering Rate
on the date hereof and the first business day of each calendar quarter during the term of this Agreement. 
 “Loan
Documents” means, collectively, this Agreement, the Representations, and all other present and future documents, instruments and agreements between PFG and Borrower, including, but not limited to those relating to this Agreement, and all
amendments and modifications thereto and replacements therefor. 
 “Material Adverse Change” means any of the following:
(i) a material adverse change in the business, operations, or financial or other condition of the Borrower, or (ii) a material impairment of the prospect of repayment of any portion of the Obligations; or (iii) a material impairment
of the value or priority of PFG’s security interests in the Collateral. 
 “Obligations” means all present and future
Loans, advances, debts, liabilities, obligations, guaranties, covenants, duties and indebtedness at any time owing by Borrower to PFG, whether evidenced by this Agreement or any note or other instrument or document, or otherwise, whether arising
from an extension of credit, opening of a letter of credit, banker’s acceptance, loan, guaranty, indemnification or otherwise, whether direct or indirect (including, without limitation, those acquired by assignment and any participation by PFG
in Borrower’s debts owing to others), absolute or contingent, due or to become due, including, without limitation, all interest, charges, expenses, fees, attorney’s fees, expert witness fees, audit fees, collateral monitoring fees, closing
fees, facility fees, termination fees, minimum interest charges and any other sums chargeable to Borrower under this Agreement or under any other Loan Documents. 
 “Other Property” means the following as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and all rights
relating thereto: all present and future “commercial tort claims” (including without limitation any commercial tort claims identified in the Representations), “documents”, “instruments”, “promissory notes”,
“chattel paper”, “letters of credit”, “letter-of-credit rights”, “fixtures”, “farm products” and “money”; and all other goods and personal property of every kind, tangible and intangible,
whether or not governed by the California Uniform Commercial Code. 
  

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		 	Partners for Growth	 	Loan and Security Agreement

  

 “Payment” means all checks, wire transfers and other items of payment received by
for credit to Borrower’s outstanding Obligations. 
 “Permitted Indebtedness” means 
 (i) the Loans and other Obligations; and 
 (ii) Indebtedness existing on the date hereof and shown on Exhibit A hereto; 
 (iii) Subordinated Debt; 
 (iv) Indebtedness owing to a Senior Lender; 
 (v) other Indebtedness secured by Permitted Liens; 
 (vi) reimbursement obligations in respect of letters of credit in an aggregate
face amount outstanding not to exceed $300,000 at any time outstanding, which have been reported to PFG in writing, plus, in the case of reimbursement obligations to a Senior Lender in respect of letters of credit. 
 “Permitted Investments” are: 
 (i) Investments (if any) shown on the Exhibit A and existing on the date hereof; 
 (ii) marketable direct obligations issued or
unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from its acquisition; 
 (iii) commercial
paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc; and 
 (iv) bank certificates of deposit issued maturing no more than 1 year after issue. 
 (v) loans to employees or directors in an amount of $100,000 in the aggregate. 
 “Permitted Liens” means the following: 
 (i) purchase money security interests in specific items of Equipment; 
 (ii) leases of specific items of
Equipment; 
 (iii) liens for taxes not yet payable; 
 (iv) additional security interests and liens consented to in writing by PFG, which consent maybe withheld in its good faith business judgment. PFG will have the right to require, as a condition to its consent under
this subparagraph (iv), that the holder of the additional security interest or lien sign an intercreditor agreement on PFG’s then standard form, acknowledge that the security interest is subordinate to the security interest in favor of PFG, and
agree not to take any action to enforce its subordinate security interest so long as any Obligations remain outstanding, and that Borrower agree that any uncured default in any obligation secured by the subordinate security interest shall also
constitute an Event of Default under this Agreement; 
 (v) security interests being terminated substantially concurrently with this
Agreement; 
 (vi) liens of materialmen, mechanics, warehousemen, carriers, or other similar liens arising in the ordinary course of business
and securing obligations which are not delinquent; 
 (vii) liens incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by liens of the type described above in clauses (i) or (ii) above, provided that any extension, renewal or replacement lien is limited to the property encumbered by the existing lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase; 
 (viii) liens in favor of customs and revenue authorities which
secure payment of customs duties in connection with the importation of goods; 
 (ix) statutory, common law or contractual liens of
depository institutions or institutions holding securities account (including rights of set-off) securing only customary charges and fees in connection with such accounts; 
 (x) liens in favor of a Senior Lender; 
 (y)
liens in favor of PacifiCorp or any other lien holder who is a party to any VPC contract, provided that such liens are subordinated to PFG; and 
 (z) liens securing Subordinated Debt. 
  

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		 	Partners for Growth	 	Loan and Security Agreement

  

 “Person” means any individual, sole proprietorship, partnership, joint venture,
trust, unincorporated organization, association, corporation, government, or any agency or political division thereof, or any other entity. 
 “Representations” means the written Representations and Warranties provided by Borrower to PFG referred to in the Schedule. 
 “Senior Lender” has the meaning set forth in Section 8 of the Schedule. 
 “Subordinated Debt” means debt incurred by Borrower subordinated to Borrower’s debt to PFG (pursuant to a subordination agreement entered into between PFG, Borrower and the subordinated creditor), on terms acceptable
to PFG in its absolute discretion; provided, however, that no subordination agreement shall be required in the event of any debt
financing by any stockholder of the Company (i) that by written agreement is expressly subordinated to PFG’s debt hereunder and (ii) the principal of
such subordinated indebtedness is not repaid while the Loan is outstanding (unless the proceeds for such repayment are derived from a indebtedness to a Senior Lender or an equity financing). 
 Other Terms. All accounting terms used in this Agreement, unless otherwise indicated, shall have the meanings given to such terms in accordance
with GAAP, consistently applied. All other terms contained in this Agreement, unless otherwise indicated, shall have the meanings provided by the Code, to the extent such terms are defined therein. 
 8. GENERAL PROVISIONS. 
 8.1
Confidentiality. PFG agrees to use the same degree of care that it exercises with respect to its own proprietary information, to maintain the confidentiality of any and all proprietary, trade secret or confidential information provided to or
received by PFG from the Borrower, which indicates that it is confidential, including business plans and forecasts, non- public financial information, confidential or secret processes, formulae, devices and contractual information, customer lists,
and employee relation matters, provided that PFG may disclose such information (i) to its officers, directors, employees, attorneys, accountants, affiliates, participants, prospective participants, assignees and prospective assignees, and such
other persons to whom PFG shall at any time be required to make such disclosure in accordance with applicable law or legal process, and (ii) in its good faith business judgment in connection with the enforcement of its rights or remedies after
an Event of Default, or in connection with any dispute with Borrower or any other Person relating to Borrower. The confidentiality agreement in this Section supersedes any prior confidentiality agreement of PFG relating to Borrower. 
 8.2 Interest Computation. In computing interest on the Obligations, all Payments received after 12:00 Noon, Pacific Time, on any day shall
be deemed received on the next Business Day. 
 8.3 Payments. All Payments may be applied, and in PFG’s good faith
business judgment reversed and re-applied, to the Obligations, in such order and manner as PFG shall determine in its good faith business judgment. 
 8.4 [INTENTIONALLY LEFT BLANK] 
 8.5 Notices. All notices to be given under this Agreement shall be in
writing and shall be given either personally, or by reputable private delivery service, or by regular first-class mail, or certified mail return receipt requested, or by fax to the most recent fax number a party has for the other party (and if by
fax, sent concurrently by one of the other methods provided herein), addressed to PFG or Borrower at the addresses shown in the heading to this Agreement, or at any other address designated in writing by one party to the other party. All notices
shall be deemed to have been given upon delivery in the case of notices personally delivered, or at the expiration of one Business Day following delivery to the private delivery service, or two Business Days following the deposit thereof in the
United States mail, with postage prepaid, or on the first business day of receipt during business hours in the case of notices sent by fax, as provided herein. 
 8.6 Severability. Should any provision of this Agreement be held by any court of competent jurisdiction to be void or unenforceable, such defect shall not affect the remainder of this Agreement, which
shall continue in full force and effect. 
 8.7 Integration. This Agreement and such other written agreements, documents and
instruments as may be executed in connection herewith are the final, entire and complete agreement between Borrower and PFG and supersede all prior and contemporaneous negotiations and oral representations and agreements, all of which are merged and
integrated in this Agreement. There are no oral understandings, representations or agreements between the parties which are not set forth in this Agreement or in other written agreements signed by the parties in connection herewith.

 8.8 Waivers; Indemnity. The failure of PFG at any time or times to require Borrower to strictly comply with any of the
provisions of this Agreement or any other Loan Document shall not waive or diminish any right of PFG later to demand and receive strict compliance therewith. Any waiver of any default shall not waive or affect any other default, whether prior or
subsequent, and whether or not similar. None of the provisions of this Agreement or any other Loan Document shall be deemed to have been waived by any act or knowledge of PFG or its agents or employees, but only by a specific written 
  

 -11- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

 waiver signed by an authorized officer of PFG and delivered to Borrower. Borrower waives the benefit of all statutes
of limitations relating to any of the Obligations or this Agreement or any other Loan Document, and Borrower waives demand, protest, notice of protest and notice of default or dishonor, notice of payment and nonpayment, release, compromise,
settlement, extension or renewal of any commercial paper, instrument, account, General Intangible, document or guaranty at any time held by PFG on which Borrower is or may in any way be liable, and notice of any action taken by PFG, unless expressly
required by this Agreement. Borrower hereby agrees to indemnify PFG and its affiliates, subsidiaries, parent, directors, officers, employees, agents, and attorneys, and to hold them harmless from and against any and all claims, debts, liabilities,
demands, obligations, actions, causes of action, penalties, costs and expenses (including reasonable attorneys’ fees), of every kind, which they may sustain or incur based upon or arising out of any of the Obligations, or any relationship or
agreement between PFG and Borrower, or any other matter, relating to Borrower or the Obligations; provided that this indemnity shall not extend to damages proximately caused by the indemnitee’s own gross negligence or willful misconduct.
Notwithstanding any provision in this Agreement to the contrary, the indemnity agreement set forth in this Section shall survive any termination of this Agreement and shall for all purposes continue in full force and effect. 
 8.9 No Liability for Ordinary Negligence. Neither PFG, nor any of its directors, officers, employees, agents, attorneys or any other Person
affiliated with or representing PFG shall be liable for any claims, demands, losses or damages, of any kind whatsoever, made, claimed, incurred or suffered by Borrower or any other party through the ordinary negligence of PFG, or any of its
directors, officers, employees, agents, attorneys or any other Person affiliated with or representing PFG, but nothing herein shall relieve PFG from liability for its own gross negligence or willful misconduct. 
 8.10 Amendment. The terms and provisions of this Agreement may not be waived or amended, except in a writing executed by Borrower and a
duly authorized officer of PFG. 
 8.11 Time of Essence. Time is of the essence in the performance by Borrower of each and
every obligation under this Agreement. 
 8.12 Attorneys’ Fees and Costs. Borrower shall reimburse PFG for all reasonable
attorneys’ fees and all filing, recording, search, title insurance, appraisal, audit, and other reasonable costs incurred by PFG, pursuant to, or in connection with, or relating to this Agreement (whether or not a lawsuit is filed), including,
but not limited to, any reasonable attorneys’ fees and costs PFG incurs in order to do the following: prepare and negotiate this Agreement and all present and future documents relating to this Agreement; obtain legal advice in connection with
this Agreement or Borrower; enforce, or seek to enforce, any of its rights; prosecute actions against, or defend actions by, Account Debtors; commence, intervene in, or defend any action or proceeding; initiate any complaint to be relieved of the
automatic stay in bankruptcy; file or prosecute any probate claim, bankruptcy claim, third-party claim, or other claim; examine, audit, copy, and inspect any of the Collateral or any of Borrower’s books and records; protect, obtain possession
of, lease, dispose of, or otherwise enforce PFG’s security interest in, the Collateral; and otherwise represent PFG in any litigation relating to Borrower. If either PFG or Borrower files any lawsuit against the other predicated on a breach of
this Agreement, the prevailing party in such action shall be entitled to recover its reasonable costs and attorneys’ fees, including (but not limited to) reasonable attorneys’ fees and costs incurred in the enforcement of, execution upon
or defense of any order, decree, award or judgment. All attorneys’ fees and costs to which PFG may be entitled pursuant to this Paragraph shall immediately become part of Borrower’s Obligations, shall be due on demand, and shall bear
interest at a rate equal to the highest interest rate applicable to any of the Obligations. 
 8.13 Benefit of Agreement. The
provisions of this Agreement shall be binding upon and inure to the benefit of the respective successors, assigns, heirs, beneficiaries and representatives of Borrower and PFG; provided, however, that Borrower may not assign or transfer any of its
rights under this Agreement without the prior written consent of PFG, and any prohibited assignment shall be void. No consent by PFG to any assignment shall release Borrower from its liability for the Obligations. 
 8.14 Joint and Several Liability. If Borrower consists of more than one Person, their liability shall be joint and several, and the
compromise of any claim with, or the release of, any Borrower shall not constitute a compromise with, or a release of, any other Borrower. 
 8.15 Limitation of Actions. Any claim or cause of action by Borrower against PFG, its directors, officers, employees, agents, accountants or attorneys, based upon, arising from, or relating to this Loan Agreement, or any other
Loan Document, or any other transaction contemplated hereby or thereby or relating hereto or thereto, or any other matter, cause or thing whatsoever, occurred, done, omitted or suffered to be done by PFG, its directors, officers, employees, agents,
accountants or attorneys, shall be barred unless asserted by Borrower by the commencement of an action or proceeding in a court of competent jurisdiction by the filing of a complaint within the earlier to occur of (i) two years after the first
act, occurrence or omission upon which such claim or cause of action, or any part thereof, is based, or (ii) one year after termination of this Agreement, and in the case of each of (i) and (ii), the service of a summons and complaint on
an officer of PFG, or on any other person authorized to accept service on behalf of PFG, within thirty (30) days thereafter. Borrower agrees that such 
  

 -12- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

 time periods are a reasonable and sufficient time for Borrower to investigate and act upon any such claim or cause of
action. The foregoing time periods shall not be waived, tolled, or extended except by the written consent of PFG in its sole discretion. This provision shall survive any termination of this Loan Agreement or any other Loan Document. 
 8.16 Paragraph Headings; Construction. Paragraph headings are only used in this Agreement for convenience. Borrower and PFG acknowledge
that the headings may not describe completely the subject matter of the applicable paragraph, and the headings shall not be used in any manner to construe, limit, define or interpret any term or provision of this Agreement. This Agreement has been
fully reviewed and negotiated between the parties and no uncertainty or ambiguity in any term or provision of this Agreement shall be construed strictly against PFG or Borrower under any rule of construction or otherwise. 
 8.17 Governing Law; Jurisdiction; Venue. This Agreement and all acts and transactions hereunder and all rights and obligations of PFG and
Borrower shall be governed by the laws of the State of California. As a material part of the consideration to PFG to enter into this Agreement, Borrower (i) agrees that all actions and proceedings relating directly or indirectly to this
Agreement shall, at PFG’s option, be litigated in courts located within California, and that the exclusive venue therefor shall be San Francisco County; (ii) consents to the jurisdiction and venue of any such court and consents to service
of process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and all rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of
any such action or proceeding. 
 8.18 Mutual Waiver of Jury Trial. BORROWER AND PFG EACH HEREBY WAIVE THE RIGHT TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN PFG AND BORROWER, OR ANY CONDUCT, ACTS OR OMISSIONS OF PFG OR BORROWER OR ANY OF
THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH PFG OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. 
  

									
	Borrower:	 		 	PFG:
			
	      Comverge, Inc.	 		 	PARTNERS FOR GROWTH, L.P.
					
	       By
	 	  
	 		 	 By
	 	  

		 	President or Vice President	 		 		 	
					
		 		 		 	 Name:
	 	  

					
	       By
	 	  
	 		 	 Title:
	 	 Manager, Partners for Growth, LLC

		 	Secretary or Ass’t Secretary	 		 		 	 Its General Partner

				
	Borrower:	 		 		 	
				
	       6D Comverge, Inc.
	 		 		 	
					
	       By
	 	  
	 		 		 	
		 	President or Vice President	 		 		 	
					
	       By
	 	  
	 		 		 	
		 	Secretary or Ass’t Secretary	 		 		 	

 Document Version - 8 
  

 -13- 

 time periods are a reasonable and sufficient time for Borrower to investigate and act upon any such claim or cause of
action. The foregoing time periods shall not be waived, tolled, or extended except by the written consent of PFG in its sole discretion. This provision shall survive any termination of this Loan Agreement or any other Loan Document. 
 8.16 Paragraph Headings; Construction. Paragraph headings are only used in this Agreement for convenience. Borrower and PFG acknowledge
that the headings may not describe completely the subject matter of the applicable paragraph, and the headings shall not be used in any manner to construe, limit, define or interpret any term or provision of this Agreement. This Agreement has been
fully reviewed and negotiated between the parties and no uncertainty or ambiguity in any term or provision of this Agreement shall be construed strictly against PFG or Borrower under any rule of construction or otherwise. 
 8.17 Governing Law; Jurisdiction; Venue. This Agreement and all acts and transactions hereunder and all rights and obligations of PFG and
Borrower shall be governed by the laws of the State of California. As a material part of the consideration to PFG to enter into this Agreement, Borrower (i) agrees that all actions and proceedings relating directly or indirectly to this
Agreement shall, at PFG’s option, be litigated in courts located within California, and that the exclusive venue therefor shall be San Francisco County; (ii) consents to the jurisdiction and venue of any such court and consents to service
of process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and all rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of
any such action or proceeding. 
 8.18 Mutual Waiver of Jury Trial. BORROWER AND PFG EACH HEREBY WAIVE THE RIGHT TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN PFG AND BORROWER, OR ANY CONDUCT, ACTS OR OMISSIONS OF PFG OR BORROWER OR ANY OF
THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH PFG OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. 
  

									
	Borrower:	 		 	PFG:
			
	      Comverge, Inc.	 		 	PARTNERS FOR GROWTH, L.P.
					
	      By	 	 /s/
	 		 	By	 	  

		 	President or Vice President	 		 		 	
		 		 		 	 Name:
	 	  

	      By	 	 /s/
	 		 	 Title:
	 	 Manager, Partners for Growth, LLC

		 	Secretary or Ass’t Secretary	 		 		 	 Its General Partner

				
	Borrower:	 		 		 	
				
	      6D Comverge, Inc.	 		 		 	
					
	      By	 	 /s/
	 		 		 	
		 	President or Vice President	 		 		 	
					
	      By	 	 /s/
	 		 		 	
		 	Secretary or Ass’t Secretary	 		 		 	

 time periods are a reasonable and sufficient time for Borrower to investigate and act upon any such claim or cause of
action. The foregoing time periods shall not be waived, tolled, or extended except by the written consent of PFG in its sole discretion. This provision shall survive any termination of this Loan Agreement or any other Loan Document. 
 8.16 Paragraph Headings; Construction. Paragraph headings are only used in this Agreement for convenience. Borrower and PFG acknowledge
that the headings may not describe completely the subject matter of the applicable paragraph, and the headings shall not be used in any manner to construe, limit, define or interpret any term or provision of this Agreement. This Agreement has been
fully reviewed and negotiated between the parties and no uncertainty or ambiguity in any term or provision of this Agreement shall be construed strictly against PFG or Borrower under any rule of construction or otherwise. 
 8.17 Governing Law; Jurisdiction; Venue. This Agreement and all acts and transactions hereunder and all rights and obligations of PFG and
Borrower shall be governed by the laws of the State of California. As a material part of the consideration to PFG to enter into this Agreement, Borrower (i) agrees that all actions and proceedings relating directly or indirectly to this
Agreement shall, at PFG’s option, be litigated in courts located within California, and that the exclusive venue therefor shall be San Francisco County; (ii) consents to the jurisdiction and venue of any such court and consents to service
of process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and all rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of
any such action or proceeding. 
 8.18 Mutual Waiver of Jury Trial. BORROWER AND PFG EACH HEREBY WAIVE THE RIGHT TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN PFG AND BORROWER, OR ANY CONDUCT, ACTS OR OMISSIONS OF PFG OR BORROWER OR ANY OF
THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH PFG OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. 
  

									
	Borrower:	 		 	PFG:
			
	      Comverge, Inc.	 		 	PARTNERS FOR GROWTH, L.P.
					
	      By	 	  
	 		 	By	 	 /s/

		 	President or Vice President	 		 		 	
		 		 		 	Name:	 	 /s/

					
	      By	 	  
	 		 	 Title:
	 	 Manager, Partners for Growth, LLC

		 	Secretary or Ass’t Secretary	 		 		 	 Its General Partner

				
	Borrower:	 		 		 	
				
	      6D Comverge, Inc.	 		 		 	
					
	      By	 	  
	 		 		 	
		 	President or Vice President	 		 		 	
					
	      By	 	  
	 		 		 	
		 	Secretary or Ass’t Secretary	 		 		 	

 Partners For Growth 
 Schedule to 
 Loan and Security Agreement 
  

			
	Borrower:	  	Comverge, Inc.
	Address:	  	4497 Park Drive, Norcross, GA 30093
		
	Borrower:	  	6D Comverge, Inc.
	Address:	  	4497 Park Drive, Norcross, GA 30093

 Date: June 8, 2005 
 This Schedule forms an integral part of the Loan and Security Agreement between PARTNERS FOR GROWTH, L.P. and Comverge, Inc. (“Parent”) and 6D Comverge, Inc. (“Sub”) (Parent and Sub referred to as
the “Borrower”) of even date. 
  

			
	1. LOAN (Section 1.1):	  	
		
	    (a) Loan:	  	The Loan shall consist of a term loan in the amount of $4,000,000, which shall be disbursed in its entirety on the Date hereof (the “Initial
Advance”).
		
	    (b) Principal Repayment:	  	The principal amount of the Loan shall be repaid on the Maturity Date, on which date the entire unpaid principal balance of the Loan plus any and all accrued and unpaid interest shall be
paid. Subject to Section 1(e), Borrower may prepay the Loan.
		
	    (c) Conversion:	  	At any time prior to the Maturity Date, PFG may at its option convert the Loan (or any part thereof, subject to the proviso at the end of this sentence) into the Series B Preferred Stock of
Parent (“PFG Conversion”) at a price of $3.62 per share (the “Conversion Price”); provided, however, if PFG elects to convert the Loan prior to the common stock of Borrower being listed on a U.S. national securities exchange,
then PFG shall be required to convert all of the then outstanding principal amount of the Loan. The Conversion Price is subject to adjustment for stock splits, combinations, reclassifications and similar transactions. If Parent completes a public
offering of its Common Stock in which all of the outstanding shares of Series B Preferred Stock convert into Common Stock and PFG does not exercise its conversion option at such time, the Loan shall cease to be

					
		 	Partners for Growth	 	Loan and Security Agreement

  

			
		  	convertible into Series B Preferred Stock and instead shall be convertible (at such time as PFG may determine in its discretion) into Parent’s Common Stock at the same ratio and upon the
same basis that such Loan was previously convertible into Series B Preferred Stock. PFG may exercise its right to convert the Loan or part thereof by telecopying or otherwise delivering an executed and completed notice specifying the portion of the
Loan to be converted into Parent’s stock (a “Conversion Notice”). Each date on which a Conversion Notice is telecopied or delivered to Parent in accordance with the provisions hereof shall be deemed a Conversion Date. The Parent stock
into which the Loan (or portion thereof as specified in the Conversion Notice) is convertible shall be deemed the relevant “Conversion Stock”. Pursuant to the terms of the Conversion Notice, Parent will use its reasonable best efforts
procure the issue of stock certificates for the Conversion Stock within three (3) business days of the delivery of the Conversion Notice and in any event shall procure the issue of stock certificates for the Conversion Stock within five (5) business
days of the delivery of the Conversion Notice.
		
	     (d) Parent-Initiated
          Conversion:
	  	If Parent consummates a firm commitment underwritten public offering of shares of Common Stock at a price per share of at least $7.00 (which price shall be subject to adjustment whenever a
Stock Event shall occur) and in which the gross cash proceeds to the Corporation are at least $30,000,000 (before deduction of underwriters commissions and other offering expenses) (for purposes hereof, a “Qualified Public Offering”),
Parent may upon 5 days’ written notice effect the conversion of the Loan, in whole and not in part (“Borrower Conversion Option”) if the following conditions and limitations are satisfied:
		
		  	(i) at the time Parent notices a Borrower Conversion Option, there shall not have occurred and be continuing any Event of Default under the Loan which has not, for the purposes of the
Borrower Conversion Option, been waived by PFG;
		
		  	(ii) the Qualified Public Offering is, in fact, completed; and
		
		  	(iii) at the time of the Qualified Public Offering or such other time as Parent proposes to exercise the Borrower Conversion Option, the Common Stock to be issued to PFG is then freely traded
by PFG without restriction. If such Common Stock may not then be freely traded by PFG without restriction, then PFG may require Parent to use its reasonable commercial efforts to include in the Qualified Public Offering registration (or in such
subsequent registration of Company Common Stock) up to $4,000,000 in value of Parent Stock held by PFG (with the remainder of such Common Stock held by PFG to be subject to such underwriter lock-ups as may apply to Parent stockholders
generally).

  

 -17- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

			
	    (e) Prepayment.	  	Borrower may prepay the Loan at any time, in whole and not in part, provided that as a condition to such prepayment, Borrower shall pay a fee, due on the date the Loan is prepaid (the
“Prepayment Date”), equal to the aggregate interest that would have been payable on the Loan during the period between the Prepayment Date and the Maturity Date, and calculated at the interest rate in effect on the Prepayment Date,
discounted at a rate of 20% per annum (the “Prepayment Fee”). Upon Borrower’s performance of all Obligations (including, in the case of a prepayment, payment of the Prepayment Fee), the Loan Agreement shall terminate. Notwithstanding
the foregoing, upon PFG’s conversion of any part of the Loan, Borrower’s right to prepay the Loan shall terminate.
		
	 2. INTEREST.
  
     Interest Rate (Section 1.2):
	  	
		
		  	 The Loan shall bear interest at a rate equal to three percent (3%) above the 3-month LIBOR rate. The applicable rate from the date hereof until
December 31, 2005 is 5.0275%.
  
 Interest shall be calculated on the date hereof and
thereafter on a calendar quarterly basis assuming a 360-day year and a year of twelve months of 30 days each for the actual number of days elapsed. Accrued interest for each month shall be payable monthly, on the first day of each month for interest
accrued during the prior month.

		
	 3. FEES (Section 1.3):
  
 Loan Fee:
	  	$80,000, payable concurrently herewith.
		
	 4. MATURITY DATE
(Section 5.1):
	  	June 7, 2010
	
	 5. FINANCIAL COVENANTS / AMORTIZATION TRIGGER
(Section 4.1):

  

 -18- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

			
		  	If Borrower should fail to achieve at least 80% of its revenue plan, measured quarterly on a rolling 12-month basis as set forth below (the “Revenue Plan”), PFG may, at its sole
option, elect to amortize all or (at PFG’s sole option) part of the Loan over a 2- year period or such lesser period as may remain between such election and the Maturity Date (the “Amortization Period”) at the interest rate set forth
in Section 2 of this Schedule and Borrower shall thereafter commence to make monthly payments of principal and interest on the Loan in conformity with the amortization schedule advised by PFG reflecting such Amortization Period. For purposes hereof,
“Revenue” means consolidated revenue recognized in accordance with GAAP, including deferred Virtual Peaking Contract customer revenues.

 Comverge Revenue Plan 
  

				
	 Quarter
	  	Revenue Test
	 Q2 2005
	  	$	17,870,000
	 Q3 2005
	  	$	20,688,000
	 Q4 2005
	  	$	25,358,000
	 Q1 2006
	  	$	25,759,000
	 Q2 2006
	  	$	26,302,000
	 Q3 2006
	  	$	26,979,000
	 Q4 2006
	  	$	27,894,000
	 Q1 2007
	  	$	28,335,000
	 Q2 2007
	  	$	28,932,000
	 Q3 2007
	  	$	29,677,000
	 Q4 2007
	  	$	30,684,000
	 Q1 2008
	  	$	31,168,000
	 Q2 2008
	  	$	31,825,000
	 Q3 2008
	  	$	32,645,000
	 Q4 2008
	  	$	33,752,000
	 Q1 2009
	  	$	34,285,000
	 Q2 2009
	  	$	35,008,000
	 Q3 2009
	  	$	35,909,000
	 Q4 2009
	  	$	37,127,000

  

			
	 6. REPORTING/NOTICES:
(Section 4.4):
	  	
		  	 Borrower shall provide PFG with the following:
  
 (a)    Monthly and quarterly unaudited financial statements, as soon as available, and in any event
within thirty days after the end of each month or quarter, as the case may be.

  

 -19- 

			
		 	 (b)    Quarterly Compliance Certificates, within 20 days after the end of each calendar quarter, in such form as PFG
shall reasonably specify, signed by the Chief Financial Officer of Borrower, certifying that as of the end of such quarter Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing
its performance for such period and the prior period (on a rolling twelve-month calculation basis) in connection with Borrower’s Revenue Plan.

		
		 	 (c)    Annual financial statements, as soon as available, and in any event within 90 days following the end of
Borrower’s fiscal year, certified by, and together with an unqualified opinion of, independent certified public accountants acceptable to PFG. If Borrower files a form 10-K with the Securities and Exchange Commission and the same is available
within said period through EDGAR, that will satisfy this requirement.

		
		 	 (d)    As and when information previously provided would no longer be true, complete and accurate, an update to the
Representations (Schedule Section 7, below).

		
		 	 (e)    Copies of all reports and statements provided by Borrower to the Senior Lender at the same time the same are
provided to the Senior Lender.

		
		 	 (f)     Borrower shall give PFG notice in accordance with the following provisions if Borrower shall, or shall
propose to:

		
		 	          (i) declare or propose to declare any dividend upon its capital stock, whether
payable in cash, property, stock or other securities and whether or not a regular cash dividend, or

		
		 	          (ii) (A) offer for subscription pro rata to the holders of shares of capital
stock of Parent (other than pursuant to contractual preemptive rights) any additional shares of stock or any class or series or other rights, or (B) request its stockholders to, or Borrower’s stockholders’ waiver of, contractual
preemptive rights to subscribe for stock offered for sale to Major Investors under Borrower’s investor rights agreement in effect on the date hereof, or

		
		 	          (iii) effect or approve any reclassification, exchange, substitution or
recapitalization of the capital stock of Parent, including any subdivision or combination of its outstanding capital stock, a change of control, liquidation, dissolution or winding up (including an assignment for the benefit of creditors),
or

					
		 	Partners for Growth	 	Loan and Security Agreement

  

			
		 	          (iv) offer holders of registration rights the opportunity to participate in any
public offering of Parent’s securities, then, in connection with such event, Parent shall give to PFG:

		
		 	          (v) at least ten (10) days prior written
notice of the date on which the books of Parent shall close or a record shall be taken for such a dividend or offer in respect of the matters referred to in (f)(i) above, or for determining rights to vote in respect of the matters referred to in
(f)(iii) above; and
  
          (vi) at least five (5) days prior written notice of the date on which the books of Parent shall close or a record shall be taken for an offer in respect of the matters referred to
in (f)(ii) above; provided however, that notice to PFG shall only be required to the extent that PFG would be entitled to notice of the events specified in (f)(ii)(A) and (B) if at such time it held Series B Preferred Stock of Borrower;
and
  
          (vii) in the case of the matters referred to in (f)(iii) above, at least ten (10) days prior written notice of the date when the same shall take place. Such notice in accordance
with the foregoing clause (f)(i) shall also specify, in the case of any such dividend, the date on which the holders of capital stock shall be entitled thereto and the terms of such dividend, and such notice in accordance with this clause (f)(vii)
shall also specify the date on which the holders of capital stock shall be entitled to exchange their capital stock for securities or other property deliverable upon such reorganization, reclassification, exchange, substitution, consolidation,
merger or sale, as the case may be, and the terms of such exchange. Each such written notice shall be given by first class mail, postage prepaid, addressed to PFG at the address of PFG; and
  
          (viii) in the case of the matter referred to in (f)(iv) above, the same notice as is given or required to be given to the holders of such registration rights.

	
	7. BORROWER INFORMATION:
		
		 	Borrower represents and warrants that the information set forth in the Representations and Warranties of the Borrower dated May 13, 2005, as to Parent, and May 25, 2005, as to Sub, delivered
to PFG (the “Representations”), is true and correct as of the date hereof.

  

 -21- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

			
	8. ADDITIONAL PROVISIONS
		
		 	 (a)     Senior Lender.
  
 (1)           Senior Lender. As used herein, “Senior Lender” means (A) Silicon Valley Bank, or (B) any other bona fide commercial lender that is making a
senior loan to Borrower and which lender is (i) unaffiliated with any investor in Borrower, (ii) not offering debt to Borrower that, as part of such transaction, is entitled to 5% or more of any class of Borrower’s stock (including by
conversion, issue of warrants or other derivative securities), and (iii) not an investor holding 5% or more of the equity (including convertible debt or derivative securities) of Borrower. “Senior Loan Documents” means that certain
Loan and Security Agreement dated as of May 7, 2003, between Borrower and Silicon Valley Bank, as amended or any other loan and security agreements that may be executed between Borrower and a Senior Lender.

		
		 	 (2)           Senior Loan Documents. Borrower represents and warrants that
it has provided PFG with true and complete copies of all existing Senior Loan Documents, and Borrower covenants that it will, in the future, provide PFG with true and complete copies of any future Senior Loan Documents, including without limitation
any amendments to any existing Senior Loan Documents.

		
		 	 (b)     Deposit Accounts. Concurrent with the execution of this Agreement, Borrower shall cause the banks
and other institutions where its Deposit Accounts are maintained to enter into control agreements with PFG, in form and substance satisfactory to PFG in its good faith business judgment and sufficient to perfect PFG’s security interest in said
Deposit Accounts, subject to the security interest of the Senior Lender. Said control agreements shall permit PFG, in its discretion, to withdraw from said Deposit Accounts accrued interest on the Obligations monthly (subject to the rights of the
Senior Lender).

		
		 	 (c)     Subordination of Inside Debt and all other Third Party Debt not constituting Permitted Indebtedness.
All present and future indebtedness of Borrower to their respective officers, directors and shareholders (“Inside Debt”) shall, at all

  

 -22- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

			
		 	            times, be subordinated to the Obligations pursuant to a subordination
agreement on PFG’s standard form. Borrower represents and warrants that there is no Inside Debt presently outstanding, except as set forth in Exhibit A to this Schedule. Prior to incurring any Inside Debt in the future, Borrower shall cause the
person to whom such Inside Debt will be owed to execute and deliver to PFG a subordination agreement on PFG’s standard form. In addition, all present and future indebtedness to any third party, if not Permitted Indebtedness, shall be at all
times subordinated to the Obligations pursuant to a subordination agreement on PFG’s standard form.

		
		 	 (d)     Warrant and Refund of Prepayment Fee. On the date hereof, Parent shall issue PFG a warrant to purchase
shares of Comverge Series B Convertible Preferred Stock, in the form attached hereto as Exhibit B (the “Warrant”). In addition to such terms of exercise as are set forth in the Warrant, PFG’s exercise of the Warrant is subject to
PFG’s refund to Parent of the Prepayment Fee as stipulated in Section 1(e) of this Schedule (the “Prepayment Fee Refund”). The amount of the Prepayment Fee Refund shall be a variable amount based upon the Prepayment Fee. If
exercised on the Prepayment Date, the Prepayment Fee Refund shall be equal to the Prepayment Fee, but if exercised on any day thereafter, the Prepayment Fee Refund shall be amortized to zero on a straight line basis over a period beginning on the
Prepayment Date and ending on June 7, 2010. For example, if the Loan is prepaid on the third anniversary of the Loan, and Borrower pays a Prepayment Fee of $400,000, the Prepayment Fee Refund would be $400,000; the Prepayment Fee Refund on the
fourth anniversary of the Loan would be $200,000 and the Prepayment Fee Refund on the Maturity Date would be $0. The Prepayment Fee Refund shall be paid within 5 Business Days of PFG’s exercise of the Warrant.

		
		 	 (e)     Warehousemen’s/Bailee Agreement. With respect to approximately $1,300,000 in Collateral stored
with Landis+Gyr, 2800 Duncan Road; Lafayette, IN 47904, on the date hereof, Borrower covenants that: at such time as Borrower pays for the goods, in whole or in part, either (i) those goods constituting such stored Collateral shall be moved to
Borrower’s premises and control, or (ii) Borrower shall procure that Landis+Gyr execute a warehousemen’s waiver or bailee agreement in form and substance reasonably acceptable to PFG.

 [SIGNATURE PAGE FOLLOWS] 
  

 -23- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

									
	Borrower:	 		 	PFG:
			
	      Comverge, Inc.	 		 	PARTNERS FOR GROWTH, L.P.
					
	       By
	 	  
	 		 	 By
	 	  

		 	President or Vice President	 		 		 	
		 		 		 	 Name:
	 	  

					
	      By	 	  
	 		 	 Title:
	 	 Manager, Partners for Growth, LLC

		 	Secretary or Ass’t Secretary	 		 		 	 Its General Partner

				
	Borrower:	 		 		 	
				
	      6D Comverge, Inc.	 		 		 	
					
	       By
	 	  
	 		 		 	
		 	President or Vice President	 		 		 	
					
	      By	 	  
	 		 		 	
		 	Secretary or Ass’t Secretary	 		 		 	

 Version - 8 
  

 -24- 

									
	Borrower:	 		 	PFG:
			
	Comverge, Inc.	 		 	PARTNERS FOR GROWTH, L.P.
					
	      By	 	 /s/
	 		 	By	 	  

		 	President or Vice President	 		 		 	
		 		 		 	Name:	 	  

					
	      By	 	 /s/
	 		 	Title:	 	Manager, Partners for Growth, LLC
		 	Secretary or Ass’t Secretary	 		 		 	Its General Partner
				
	Borrower:	 		 		 	
				
	      6D Comverge, Inc.	 		 		 	
					
	      By	 	 /s/
	 		 		 	
		 	President or Vice President	 		 		 	
					
	      By	 	 /s/
	 		 		 	
		 	Secretary or Ass’t Secretary	 		 		 	

 Version - 8 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

									
	Borrower:	 		 	PFG:
			
	      Comverge, Inc.	 		 	PARTNERS FOR GROWTH, L.P.
					
	      By	 	  
	 		 	By	 	 /s/

		 	President or Vice President	 		 		 	
					
		 		 		 	Name:	 	 /s/

					
	      By	 	  
	 		 	Title:	 	Manager, Partners for Growth, LLC
		 	Secretary or Ass’t Secretary	 		 		 	Its General Partner
				
	Borrower:	 		 		 	
				
	      6D Comverge, Inc.	 		 		 	
					
	      By	 	  
	 		 		 	
		 	President or Vice President	 		 		 	
					
	      By	 	  
	 		 		 	
		 	Secretary or Ass’t Secretary	 		 		 	

 Version - 8 
  

 -26- 

					
		 	Partners for Growth	 	Loan and Security Agreement

  

 Exhibit A to Loan and Security Agreement 
 Section 7-”Permitted Indebtedness”-Other Existing Permitted Indebtedness: 
 NONE 
 Section 8 - “Inside Debt”: 
 NONE 
 Section 7—”Permitted Investments”—Other Existing Permitted Investments: 
 1. A loan in the principal amount of $50,000 made to a contractor of Comverge, Inc., Cecil Barrett, the details of which have been disclosed to PFG. 
  

 -27-Lease, Equipment and Office Services Agreement

 Exhibit 10.9 
 LEASE, EQUIPMENT AND OFFICE SERVICES AGREEMENT 
 Made on the 1st day of October 1999 
 Between 

Decision Systems Israel Ltd. 
 of 11 Ben
Gurion Street 
 Givat Shmuel, Israel 
 (hereinafter referred to as “DSI”) 
 And 
 PowerCom Control Systems Ltd. 
 of 11 Ben Gurion Street 
 Givat Shmuel, Israel 
 (hereinafter referred to
as “PowerCom”) 
 WHEREAS, DSI has declared that it has the right to sublet to PowerCom office space located at DSI’s premises at 11 Ben
Gurion Street, Givat Shmuel, all as specifically set out in Annex A hereto (the “Premises”); 
 WHEREAS the parties desire that PowerCom obtain
certain office services from DSI; 
 WHEREAS, DSI has agreed to let the Premises and to provide certain office and administrative services and equipment to
PowerCom, and PowerCom has agreed to lease the Premises and receive the services and equipment, on the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, it is hereby declared and agreed between the parties as follows: 
  

	1.	The provisions of the preamble to this Agreement form an integral part hereof and are binding upon the parties hereto. Capitalized terms used herein without definition shall have
the meanings assigned thereto in the Asset Purchase Agreement, dated October 1, 1999 between the parties hereto. 

  

	2.	DSI shall permit PowerCom to use the premises for the period commencing on the Closing Date and terminating twelve (12) months thereafter (hereinafter the “Term”).

  

	3.	PowerCom may terminate its lease of the Premises from DSI upon the same conditions for termination as apply to the lease by DSI of its premises. 

  

	4.	PowerCom shall pay DSI, during the Term, a sum of $14,000 Dollars (US$        ) plus VAT per month (the “Payment”), which
shall be paid once every two (2) months in advance during the Term, commencing on the first day of the first month after the date hereof. All such sums shall be paid in New Israeli Shekel calculated at the Representative Rate of Exchange as
announced by the Bank of Israel on the day before the date of such payment. 

 The Parties acknowledge that the Payment covers
all the Office Services listed in this Agreement, including but not limited to the use of the Premises and the services described herein and in the schedules attached hereto. 
  

 -1- 

	5.	DSI hereby agrees, warrants and undertakes: 

  

	 	a.	To vacate the Premises for use by PowerCom during the Term, and to provide PowerCom with the use of the furniture and equipment as set out in Schedule 1.4 to the Asset Purchase
Agreement. 

  

	 	b.	To ensure that PowerCom, whilst observing and performing all conditions and covenants on its part, as herein contained, shall peacefully enjoy the Premises during the Term, without
any interference by DSI, or any person claiming to act on the DSI’s behalf; 

  

	 	c.	During the Term, DSI will repair the Premises on its account upon being given reasonable notice by PowerCom of the necessity therefor. PowerCom will reimburse DSI for the expense
involved with such repair. In the event of Force Majure for which no reasonable notice could be given, PowerCom will be entitled to execute emergency repairs on account of the DSI; 

  

	 	d.	To insure the Premises in the names of PowerCom and to provide PowerCom with copies of the Certificates of Insurance thereof on request, and to give PowerCom 3 days notice of its
intention to cancel any such insurance; 

  

	 	e.	To pay local municipal rates and taxes, as well as all electricity, water, gas and security service bills on time during the Term, and to be responsible for the payment of any fines
imposed for late payment of such bills; 

  

	 	f.	To insure, on its account, for entire Term, all items specified in the Office Supply List against all risks, including third party liability, as is customary with regard thereto;

  

	 	g.	To provide PowerCom with sufficient telephone and communication lines, photocopying and office supplies in a number and quality as provided for in the Office Supply List.

  

	 	h.	To provide PowerCom with the office and administrative/financial services set out in Annex B hereto. 

  

	6.	PowerCom hereby agrees, warrants and undertakes: 

  

	 	a.	That it has examined the Premises and the Office Supplies on the Office Supply List, and has found them to be satisfactory for its needs. 

  

	 	b.	To maintain the interior of the Premises in the same good and habitable state and condition as on the date of receipt of its tenancy thereof, subject to fair wear and tear.

  

	 	c.	Not to assign in whole or in part rights and obligations hereunder to any person or persons without the prior written consent of DSI, and not to sublet the Premises or any part
thereof, not to transfer the tenancy of the Premises or any part thereof, to any person or persons other than a subsidiary or affiliate, without the prior written consent of DSI. 

  

	 	d.	Upon termination of the Term to return the Premises and the Office Supplies in good and proper working order, normal wear and tear excluded. 

  

	 	e.	To pay in a timely manner for the telephone and communication lines provided by DSI as set out in Article 5 above. 

  

 -2- 

	7.	In the event DSI fails to comply with any of the conditions listed in Article 5 of this Agreement, PowerCom shall be entitled, upon sufficient advance notice to DSI to enable it to
remedy such situation and upon DSI’s failure to do so, either to terminate this Agreement or, at PowerCom’s option, to take any reasonable measures under the circumstances to make such remedies to the Premises, at the entire cost and
expense of DSI. PowerCom shall be entitled to either (i) deduct all expenses thus incurred by itself from any future payments due to DSI, or (ii) demand immediate refund of all such expenses by DSI. 

  

	8.	In the event that the Premises are destroyed, or seriously damaged as a result of fire, earthquake, war or any other disastrous occurrence, to such an extent that they have become
totally uninhabitable, PowerCom shall be entitled to immediate termination of this Agreement without prior notice. 

  

	9.	This Agreement shall be governed by and construed in accordance with the laws of Israel. Any dispute between the parties concerning any issue under this Agreement, or under or in
relation thereto, which cannot be settled amicably, shall be presented in and determined by the Israeli courts at Tel Aviv which shall have exclusive jurisdiction. 

  

	10.	Any notice to be given hereunder by one party to the other may be sent by registered post to the addresses first above listed. 

 Any notice so sent by either party shall be deemed to have been properly served to the other party upon the expiration of seventy-two (72) hours from
the posting of the registered letter containing such notice. 
 IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first above
written 
  

									
	PowerCom Control System Ltd.	 		 	Decision Systems Israel Ltd.
					
	By:	 	 /s/ (illegible)
	 		 	By:	 	 /s/ (illegible)

	Title:	 		 		 	Title:	 	

  

 -3- 

 LEASE, EQUIPMENT AND OFFICE SERVICES AGREEMENT 
 ANNEX A – PLAN OF THE PREMISES 
  

 -4- 

 LEASE, EQUIPMENT AND OFFICE SERVICES AGREEMENT 
 ANNEX B – LIST OF OFFICE SERVICES 
 Electricity 
 Water (outside the premises) 
 Sanitation (outside the premises) 
 Air Conditioning 
 Parking – according to existing spaces allocated to Transferred
Employees 
 Reception services at DSI Hours 
 Maintenance 
 Cleaning 
 Photocopying 
 Office Supplies 
 Telephone lines and answering services 
 Fax services 
 Internet Connections 
 Payroll Services 
 Payables and Receivables Processing 
  

 -5- 

 Amendment 
 Pursuant to an informal arrangement between the parties, the original agreement has been extended, and the Payment amount set forth in Paragraph 4 of the original agreement has been reduced to $6,250 plus VAT per
month. 
 The services provided, as listed on Annex B to the original agreement, have been amended to include the following: 
  

	 	•	 	Rent and all associated costs (taxes, maintenance, electricity, parking etc.) 

  

	 	•	 	Telephone (local and international with the exception of calls made by Comverge employees when overseas) 

  

	 	•	 	Computer systems maintenance and services 

  

	 	•	 	Insurance 

  

	 	•	 	Fax 

  

	 	•	 	Internet 

  

	 	•	 	Office supplies and services 

  

	 	•	 	Payroll and bookkeeping services 

  

	 	•	 	All administrative functions 

  

	 	•	 	Monthly financial reporting to Comverge USA 

  

	 	•	 	Financial statement preparation, tax and Chief Scientist reporting 

  

	 	•	 	Liaison with Kesselman & Kesselman (PWC’s Israeli affiliate) 

 In addition, charges may be made for professional personnel, which are charged on an hourly basis, as needed.

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