Document:

Loan and Security Agreement

 Exhibit 10.12 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT is made and
dated as of June 13, 2011 and is entered into by and between ENPHASE ENERGY, INC., a Delaware corporation (“Parent”), and each of Parent’s other subsidiaries joined hereto (“Joined Subsidiaries”, together with Parent
hereinafter collectively referred to as the “Borrower”), and HERCULES TECHNOLOGY GROWTH CAPITAL, INC., a Maryland corporation (“Lender”). 
 RECITALS 
 A. Borrower has requested Lender to make available to Borrower
an equipment loan in an aggregate principal amount of up to Five Million ($5,000,000) (the “Loan”); 
 B. Lender is
willing to make the Loan on the terms and conditions set forth in this Agreement. 
 AGREEMENT 

NOW, THEREFORE, Borrower and Lender agree as follows: 
 SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION 

1.1 Unless otherwise defined herein, the following capitalized terms shall have the following meanings: 

“ACH Authorization” means the ACH Debit Authorization Agreement in substantially the form of Exhibit F. 

“Advance(s)” means any Equipment Advance and/or Secondary Equipment Advance. 

“Advance Date” means the funding date of any Advance. 
 “Advance Request” means a request for an Advance submitted by Borrower to Lender in substantially the form of Exhibit A. 

“Agreement” means this Loan and Security Agreement, as amended from time to time. 

“Assignee” has the meaning given to it in Section 11.13. 

“Bailee Agreement” means a bailee agreement or warehouse agreement in form and substance reasonably acceptable to Lender.

 “Borrower Products” means all products, software, service offerings, technical data or technology currently being
designed, manufactured or sold by Borrower or which Borrower intends to sell, license, or distribute in the future including any products or service offerings under development, collectively, together with all products, software, service offerings,

 
technical data or technology that have been sold, licensed or distributed by Borrower since its incorporation. 
 “Cash” means all cash and liquid funds. 
 “Change in Control”
means any (i) reorganization, recapitalization, consolidation or merger (or similar transaction or series of related transactions) of Borrower or any Subsidiary, sale or exchange of outstanding shares (or similar transaction or series of
related transactions) of Borrower or any Subsidiary in which the holders of Borrower or Subsidiary’s outstanding shares immediately before consummation of such transaction or series of related transactions do not, immediately after consummation
of such transaction or series of related transactions, retain shares representing more than fifty percent (50%) of the voting power of the surviving entity of such transaction or series of related transactions (or the parent of such surviving
entity if such surviving entity is wholly owned by such parent), in each case without regard to whether Borrower or Subsidiary is the surviving entity, or (ii) sale or issuance by Borrower of new shares of Preferred Stock of Borrower to
investors, none of whom are current investors in Borrower, and such new shares of Preferred Stock are senior to all existing Preferred Stock and Common Stock with respect to liquidation preferences, and the aggregate liquidation preference of the
new shares of Preferred Stock is more than fifty percent (50%) of the aggregate liquidation preference of all shares of Preferred Stock of the Company; provided, however, an Initial Public Offering shall not constitute a Change in Control.

 “Claims” has the meaning given to it in Section 11.10. 

“Closing Date” means the date of this Agreement. 
 “Collateral” means the property described in Section 3. 

“Confidential Information” has the meaning given to it in Section 11.12. 

“Consent Letters” means letters from each of the Incumbent Lenders pursuant to which such Incumbent Lender agrees to deliver to
Lender a Release Letter with respect to any Eligible Equipment prior to Lender making an Advance for such Eligible Equipment, in each case, in form and substance acceptable to Lender. 

“Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that
Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that
Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued for the account of that Person; and
(iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Contingent
Obligation shall be deemed to be an amount equal to the 

  
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stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement. 

“Copyrights” means all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any
State thereof, or of any other country. 
 “Copyright License” means any written agreement granting any right to use
any Copyright or Copyright registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
 “Effective Date” has the meaning given to it in Section 4.1. 

“Eligible Equipment” is (a) Equipment used by Borrower in the ordinary course of business and (b) Secondary
Equipment. 
 “Equipment Advance” means any Loan funds advanced under this Agreement that are not Secondary Equipment
Advances. 
 “ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 

“Event of Default” has the meaning given to it in Section 9. 

“Facility Charge” means $50,000. 
 “Financed Equipment” means Eligible Equipment purchased by Borrower with Advances pursuant to Section 2.1. 
 “Financial Statements” has the meaning given to it in Section 7.1. 

“GAAP” means generally accepted accounting principles in the United States of America, as in effect from time to time.

 “Incumbent Lenders” means Atel Ventures, Inc., Compass Horizon Funding Company Inc. and Bridge Bank, National
Association. 
 “Indebtedness” means indebtedness of any kind, including (a) all indebtedness for borrowed money
or the deferred purchase price of property or services, including reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments,
(c) all capital lease obligations, and (d) all Contingent Obligations. 
 “Initial Public Offering” means
the initial underwritten offering of Borrower’s common stock pursuant to a registration statement under the Securities Act of 1933 filed with and declared effective by the Securities and Exchange Commission. 

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

 “Intellectual Property” means all of Borrower’s Copyrights; Trademarks; Patents; Licenses; trade secrets and
inventions; mask works; Borrower’s applications therefor and reissues, extensions, or renewals thereof; and Borrower’s goodwill associated with any of the foregoing, together with Borrower’s rights to sue for past, present and future
infringement of Intellectual Property and the goodwill associated therewith. 
 “Interest Rate” means the higher of
(i) the Prime Rate plus 5.75% and (ii) 9.0%. 
 “International Based Financed Equipment” means Financed
Equipment to be located, upon completion of transit, at (i) Flextronics International Ltd.’s (or its affiliates’) locations in (a) Canada and (b) China, or (ii) such other location outside of the United States approved
in writing by Lender, in each case of subsection (i) and (ii), so long as such Financed Equipment is subject to a Bailee Agreement or a Landlord Consent, as applicable. 
 “Investment” means any beneficial ownership (including stock, partnership or limited liability company interests) of or in any Person, or any loan, advance or capital contribution to any Person.

 “Investors” means existing investors in Borrower and certain affiliates of such investors. 

“Investors’ Indebtedness” means subordinated convertible Indebtedness of Borrower in favor of Investors in an aggregate
principal amount not to exceed $50,000,000; provided, that the same is subject to the Investors Subordination Agreement. 

“Investors Subordination Agreement” means that certain subordination agreement between the Investors and Lender, with respect
to the Investors’ Indebtedness, in form and content acceptable to Lender in its sole discretion; provided, that without limiting the foregoing, the Investors Subordination Agreement shall provide, among other things, that (i) the
Investors’ Indebtedness cannot be repaid before the Secured Obligations are indefeasibly repaid in full, in cash, and the Lender’s commitments to lend hereunder have been terminated, (ii) interest payable on account of the
Investors’ Indebtedness may not be paid currently, or in cash, but must be accrued, if at all, as PIK (payment in kind; non-cash) interest, and (iii) no Investor or any agent or any representative of Investors may declare a default of the
Investors’ Indebtedness or otherwise attempt to accelerate payment of the Investors’ Indebtedness (or otherwise pursue any rights or remedies with respect thereto, including with respect to any liens on any collateral) unless and until the
Secured Obligations are indefeasibly repaid in full, in cash, and the Lender’s commitments to lend hereunder have been terminated. 
 “Joined Subsidiaries” has the meaning given to it in the preamble to this Agreement. 

  
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 “Joinder Agreements” means for each Subsidiary, a completed and executed Joinder
Agreement in substantially the form attached hereto as Exhibit E. 
 “Landlord Consent” means a landlord or mortgagee
letter acceptable in form and substance acceptable to Lender. 
 “Lender” has the meaning given to it in the preamble
to this Agreement. 
 “License” means any Copyright License, Patent License, Trademark License or other license of
rights or interests. 
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security,
security interest, encumbrance, levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, and any lease in the nature of
a security interest. 
 “Loan” means the Advances made under this Agreement. 

“Loan Documents” means this Agreement, the Notes, the ACH Authorization, the Joinder Agreements, all UCC Financing Statements,
Landlord Consents, Bailee Agreements, Consent Letters, Release Letters, the Warrant and any other documents executed in connection with the Secured Obligations or the transactions contemplated hereby, as the same may from time to time be amended,
modified, supplemented or restated. 
 “Material Adverse Effect” means a material adverse effect upon: (i) the
business, operations, properties, assets, or condition (financial or otherwise) of Borrower and its Subsidiaries taken as a whole; or (ii) the ability of Borrower to perform the Secured Obligations in accordance with the terms of the Loan
Documents, or the ability of Lender to enforce any of its rights or remedies with respect to the Secured Obligations; or (iii) the Collateral, or Lender’s Liens on the Collateral or the priority of such Liens. 

“Maturity Date” means July 1, 2014. 
 “Maximum Loan Amount” means Five Million and No/100 Dollars ($5,000,000). 
 “Maximum Rate” shall have the meaning assigned to such term in Section 2.3. 
 “Note(s)” means a Promissory Note in substantially the form of Exhibit B. 
 “Patent License” means any written agreement granting any right with respect to any invention on which a Patent is in existence or a Patent application is pending, in which agreement Borrower
now holds or hereafter acquires any interest. 
 “Patents” means all letters patent of, or rights corresponding
thereto, in the United States or in any other country, all registrations and recordings thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States or any other country. 

  
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 “Permitted Indebtedness” means: (i) Indebtedness of Borrower in favor of
Lender arising under this Agreement or any other Loan Document; (ii) Indebtedness existing on the Closing Date which is disclosed in Schedule 1A; (iii) Indebtedness to trade creditors incurred in the ordinary course of business, including
Indebtedness incurred in the ordinary course of business with corporate credit cards; (iv) Indebtedness that also constitutes a Permitted Investment; (v) Subordinated Indebtedness; (vi) reimbursement obligations in connection with
letters of credit that are secured by cash or cash equivalents and issued on behalf of the Borrower or a Subsidiary thereof in an amount not to exceed $200,000 at any time outstanding, (vii) other Indebtedness in an amount not to exceed
$150,000 in the aggregate at any time outstanding, (viii) the Investors’ Indebtedness, and (ix) extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the
terms modified to impose materially more burdensome terms upon Borrower or its Subsidiary, as the case may be. 

“Permitted Investment” means: (i) Investments existing on the Closing Date which are disclosed in Schedule 1B;
(ii) (a) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof maturing within one year from the date of acquisition thereof, (b) commercial paper
maturing no more than one year from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service, (c) certificates of deposit issued
by any bank with assets of at least $500,000,000 maturing no more than one year from the date of investment therein, (d) money market accounts, and (e) Investments made in accordance with Borrower’s short-term investment policy as
approved by Borrower’s Board of Directors, as submitted to Lender prior to the Closing Date; (iii) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business; (iv) repurchases of stock from former employees, directors, or consultants of Borrower under the terms of applicable repurchase agreements at the original issuance price of such securities in an aggregate amount not to exceed
$250,000 in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases; (v) Investments accepted in connection with Permitted Transfers; (vi) Investments (including
debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of
Borrower’s business; (vii) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to, customers and suppliers who are not affiliates, in the ordinary course of business, provided that this clause
(vii) shall not apply to Investments of Borrower in any Subsidiary; (viii) Investments consisting of loans not involving the net transfer on a substantially contemporaneous basis of cash proceeds to employees, officers or directors
relating to the purchase of capital stock of Borrower pursuant to employee stock purchase plans or other similar agreements approved by Borrower’s Board of Directors; (ix) Investments consisting of travel advances and employee relocation
loans and other employee loans which are made in the ordinary course of business and which do not exceed $250,000 in the aggregate in any fiscal year; (x) Investments in newly-formed Subsidiaries organized in the United States, provided that
such Subsidiaries enter into a Joinder Agreement promptly after their formation by Borrower and execute such other documents as shall be reasonably requested by Lender; (xi) Investments in Subsidiaries organized outside of the United States in
an amount not to exceed $4,500,000 in the aggregate in any fiscal year; (xii)

  
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(A) joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the nonexclusive licensing of technology, the development of technology or the providing
of technical support, provided, that any cash Investments by Borrower pursuant to this clause (xii)(A) do not exceed $250,000 in the aggregate in any fiscal year, and (B) strategic alliances with particular customers in which such customers
will share in the research and development expenses of Borrower associated with the incorporation by such customers of microconverters purchased from Borrower into solar panels produced by such customers; (xiii) Investments in connection with
mergers or acquisitions permitted by Section 7.10; (xiv) Investments made pursuant to the conversion or settlement of any convertible securities or Indebtedness of Borrower permitted by Section 7.5; (xv) deposits and deposit
accounts maintained with commercial banks organized under the laws of the United States or a state thereof to the extent (A) such deposits and deposit accounts are insured by the Federal Deposit Insurance Corporation up to the legal limit and
(B) each such commercial bank has an aggregate capital and surplus of not less than $100,000,000; and (xvi) additional Investments that do not exceed $150,000 in the aggregate at any time outstanding. 

“Permitted Liens” means any and all of the following: (i) Liens in favor of Lender; (ii) Liens for taxes, fees,
assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; provided, that Borrower maintains adequate reserves therefor in accordance with, and to the extent required by,
GAAP; and (iii) Liens securing claims or demands of carriers, warehousemen, landlords and other like Persons arising in the ordinary course of Borrower’s business and imposed without action of such parties; provided, that (a) the
payment of the obligation secured by such Lien is not overdue and (b) such Collateral is subject to a Landlord Consent or a Bailee Agreement, as applicable; 
 “Permitted Transfers” means (i) sales of Inventory in the normal course of business, (ii) non-exclusive licenses and similar arrangements for the use of Intellectual Property in the
ordinary course of business and other licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discrete
geographical areas outside of the United States, (iii) dispositions of worn-out, obsolete or surplus Equipment (other than Financed Equipment) at fair market value (as determined by Borrower in its reasonable discretion) in the ordinary course
of business, (iv) dispositions expressly permitted under Section 7.7, 7.8 or 7.10, and (v) other Transfers of assets having a fair market value of not more than $250,000 in the aggregate in any fiscal year. 

“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization,
association, corporation, limited liability company, institution, other entity or government. 
 “Preferred Stock”
means at any given time any equity security issued by Borrower that has any rights, preferences or privileges senior to Borrower’s common stock. 
 “Prime Rate” means for any day the prime rate as reported in The Wall Street Journal. 

  
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 “Receivables” means (i) all of Borrower’s Accounts, Instruments,
Documents, Chattel Paper, Supporting Obligations, letters of credit, proceeds of any letter of credit, and Letter of Credit Rights, and (ii) all customer lists, software, and business records related thereto. 

“Release Letters” means letters from each of the Incumbent Lenders pursuant to which such Incumbent Lender agrees to release
any interest in the Financed Equipment, in each case, in form and substance acceptable to Lender. 
 “Secondary
Equipment” is leasehold improvements, intangible property including computer software and software licenses, equipment specifically designed or manufactured for Borrower, limited use property and other similar property (it being understood
that, for purposes of this definition, equipment that is not specifically designed or manufactured for Borrower, but which is utilized by Borrower to assemble equipment that is specific to its business, shall not be deemed to be Secondary
Equipment). 
 “Secondary Equipment Advance” means any Loan funds advanced under this Agreement to finance Secondary
Equipment. 
 “Secured Obligations” means Borrower’s obligations under this Agreement and any Loan Document,
including any obligation to pay any amount now owing or later arising; provided, however, that Borrower’s obligations under the Warrant shall not constitute Secured Obligations. 

“Subordinated Indebtedness” means Indebtedness subordinated to the Secured Obligations in amounts and on terms and conditions
satisfactory to Lender in its sole discretion. 
 “Subsidiary” means an entity, whether corporate, partnership,
limited liability company, joint venture or otherwise, in which Borrower owns or controls 50% or more of the outstanding voting securities, including each entity listed on Schedule 1 hereto. 

“Trademark License” means any written agreement granting any right to use any Trademark or Trademark registration, now owned or
hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
 “Trademarks”
means all trademarks (registered, common law or otherwise) and any applications in connection therewith, including registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political subdivision thereof. 
 “UCC” means the Uniform
Commercial Code as the same is, from time to time, in effect in the State of California; provided, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect
to, Lender’s Lien on any Collateral is governed by the Uniform Commercial Code as the same is, from time to time, in effect in a jurisdiction other than the State of California, then the term “UCC” shall mean the Uniform Commercial
Code as in effect, from time to time, in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions. 

  
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 “Warrant” means the warrant entered into in connection with the Loan. 

Unless otherwise specified, all references in this Agreement or any Annex or Schedule hereto to a “Section,”
“subsection,” “Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding Section, subsection, Exhibit, Annex, or Schedule in or to this Agreement. Unless otherwise specifically provided herein, any
accounting term used in this Agreement or the other Loan Documents shall have the meaning customarily given such term in accordance with GAAP, and all financial computations hereunder shall be computed in accordance with GAAP, consistently applied.
Unless otherwise defined herein or in the other Loan Documents, terms that are used herein or in the other Loan Documents and defined in the UCC shall have the meanings given to them in the UCC. 

SECTION 2. THE LOAN 
 2.1 Loan. 
 (a) Advances. Subject to the terms and conditions of
this Agreement, commencing on the Effective Date and continuing until December 13, 2011, Borrower may request Advances in the aggregate principal amount of the Maximum Loan Amount; provided, however, that the minimum amount of
each Advance shall be $100,000. If the aggregate amount of the Advances outstanding exceeds the Maximum Loan Amount at any time, Borrower must immediately pay Lender the excess. When repaid, the Advances may not be re-borrowed. The proceeds of each
Advance may only be used to finance new Eligible Equipment or Eligible Equipment purchased within the immediately preceding 90 days (determined based upon the applicable invoice date of such Eligible Equipment); provided, however, that
on the Effective Date, Borrower may draw an Advance of up to $5,000,000 for Eligible Equipment purchased within the immediately preceding one eighty (180) days. No Advance may exceed one hundred percent (100%) of the invoice(s) for the
applicable Eligible Equipment; provided, that the Advance made on the Effective Date will not exceed fifty percent (50%) of the invoice(s) for any Eligible Equipment with invoices in excess of one hundred twenty (120) days.
Notwithstanding the foregoing, unless otherwise agreed to by Lender, (i) not more than 10% of each Advance shall be Secondary Equipment Advances, (ii) Secondary Equipment Advances shall not exceed $500,000, in the aggregate, and
(iii) Advances for International Based Financed Equipment shall not exceed $3,750,000, in the aggregate. 

(b) Advance Request. To obtain an Advance, Borrower shall complete, sign and deliver an Advance Request, Note, copies of
invoices for the Financed Equipment, and such additional information as Lender may reasonably request at least five (5) business days prior to the requested Advance Date. Lender shall fund an Advance in the manner requested by the Advance
Request provided that each of the conditions precedent to such Advance is satisfied as of the requested Advance Date. 
 (c) Interest. The principal balance of each Advance shall bear interest thereon from such Advance Date at the Interest Rate based on a year consisting of 360 days, with interest computed daily based on
the actual number of days elapsed. The Interest Rate will float and change on the day the Prime Rate changes from time to time. 

  
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 (d) Payment. Borrower will pay interest on each Advance on the first day of
each month, beginning the month after the Advance Date of such Advance. Borrower shall repay the aggregate principal balance of all Advances that are outstanding on June 13, 2012 in 25 equal monthly installments of principal and interest
beginning on July 1, 2012 and continuing on the first business day of each month thereafter through the Maturity Date. The entire Loan principal balance and all accrued but unpaid interest hereunder, shall be due and payable on the Maturity
Date. Borrower shall make all payments under this Agreement without setoff, recoupment or deduction and regardless of any counterclaim or defense. Lender will initiate debit entries to the Borrower’s account as authorized on the ACH
Authorization on each payment date of all periodic obligations payable to Lender under each Note or Advance. 

2.2 Maximum Interest. Notwithstanding any provision in this Agreement, the Notes, or any other Loan Document, it is the
parties’ intent not to contract for, charge or receive interest at a rate that is greater than the maximum rate permissible by law that a court of competent jurisdiction shall deem applicable hereto (which under the laws of the State of
California shall be deemed to be the laws relating to permissible rates of interest on commercial loans) (the “Maximum Rate”). If a court of competent jurisdiction shall finally determine that Borrower has actually paid to Lender an amount
of interest in excess of the amount that would have been payable if all of the Secured Obligations had at all times borne interest at the Maximum Rate, then such excess interest actually paid by Borrower shall be deemed retroactively applied as of
the date of receipt of such payment as follows: first, to the payment of principal outstanding on the Notes; second, after all principal is repaid, to the payment of Lender’s accrued interest, costs, expenses, professional fees and any other
Secured Obligations; and third, after all Secured Obligations are repaid, the excess (if any) shall be refunded to Borrower. 
 2.3 Default Interest. In the event any payment is not paid on the scheduled payment date, an amount equal to five percent (5%) of the past due amount shall be payable on demand. In addition, upon the
occurrence and during the continuation of an Event of Default hereunder, all Secured Obligations, including principal, interest, compounded interest, and Lender’s fees and expenses set forth in Section 11.11, shall bear interest at a rate
per annum equal to the rate set forth in Section 2.1(c) plus five percent (5%) per annum. In the event any interest is not paid when due hereunder, delinquent interest shall be added to principal and shall bear interest on interest,
compounded at the rate set forth in Section 2.1(c) or Section 2.4, as applicable. 
 2.4 Prepayment. At
its option upon at least 7 business days prior notice to Lender, Borrower may prepay all, but not less than all, of the outstanding Advances by paying the entire principal balance and all accrued and unpaid interest. Borrower shall prepay the
outstanding amount of all principal and accrued and unpaid interest upon the earlier to occur of a Change in Control or within 90 days of the completion of an Initial Public Offering which results in aggregate gross proceeds to Parent of less than
$30,000,000. 
 2.5 End of Term Charge. On the earliest to occur of (i) the Loan Maturity Date,
(ii) the date that Borrower prepays the outstanding Secured Obligations, or (iii) the date 

  
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that the Secured Obligations become due and payable, Borrower shall pay Lender a charge of $50,000. Notwithstanding the required payment date of such charge, it shall be deemed earned by Lender
as of the Closing Date. 
 SECTION 3. SECURITY INTEREST 

3.1 As security for the prompt, complete and indefeasible payment when due (whether on the payment dates or otherwise) of
all the Secured Obligations, Borrower grants to Lender a security interest in all Financed Equipment and all of Borrower’s books and records relating to the Financed Equipment, and any and all claims, rights and interests in any of the Financed
Equipment and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, Proceeds and insurance proceeds of any or all of the foregoing (collectively, the “Collateral”).

 SECTION 4. CONDITIONS PRECEDENT TO LOAN 
 The obligations of Lender to make the Loan hereunder are subject to the satisfaction by Borrower of the following conditions: 

4.1 Initial Advance. Borrower shall have delivered to Lender each of the following, in form and substance satisfactory to
Lender (the date on which each of the following shall have been so delivered is referred to herein as the “Effective Date”): 
 (a) executed originals of the Loan Documents and all other documents and instruments reasonably required by Lender to effectuate the transactions contemplated hereby or to create and perfect the Liens of
Lender with respect to all Collateral, in all cases in form and substance reasonably acceptable to Lender; 
 (b)
certified copy of resolutions of Borrower’s board of directors evidencing approval of (i) the Loan and other transactions evidenced by the Loan Documents; and (ii) the Warrant and transactions evidenced thereby; 

(c) certified copies of the Certificate of Incorporation and the Bylaws, as amended through the Closing Date, of Borrower;

 (d) a certificate of good standing for Borrower from its state of incorporation and similar certificates from
all other jurisdictions in which it does business and where the failure to be qualified would have a Material Adverse Effect; 
 (e) a certificate of incumbency as to each officer of Borrower who is authorized to execute the Loan Documents, the Warrant, and all other documents and instruments to be delivered pursuant to the Loan
Documents and the Warrant on behalf of Borrower, including, without limitation, the chief financial officer of Borrower; 
 (f) payment of the Facility Charge and reimbursement of Lender’s current expenses reimbursable pursuant to this Agreement, which amounts may be deducted from the initial Advance; 

  
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 (g) Landlord Consents or Bailee Agreements, as applicable, for the premises
where the Financed Equipment will, upon completion of transit, be located; provided, that up to $3,750,000 of the initial Advance may be used for the purchase of International Based Financed Equipment without delivering to Lender, prior to
the disbursement of such Advance, any Landlord Consents in respect of the premises in the continental United States where such International Based Financed Equipment may be located temporarily, so long as (i) prior to the disbursement of such
Advance, one or more Bailee Agreements, as applicable, are delivered in respect of the foreign premises where such International Based Financed Equipment will be located upon completion of transit, and (ii) within 90 days of the Effective Date
(or any subsequent Advance Date with respect to any International Based Financed Equipment not financed on the Effective Date), such International Based Financed Equipment is relocated to such foreign premises; 

(h) a Consent Letter from each Incumbent Lender; 

(i) a Release Letter from each Incumbent Lender with respect to the Financed Equipment purchased with the proceeds of the
initial Advance; and 
 (j) such other documents as Lender may reasonably request. 

4.2 All Advances. On each Advance Date: 

(a) Lender shall have received (i) an Advance Request and a Note for the relevant Advance as required by
Section 2.1(b) each duly executed by Borrower’s Chief Executive Officer or Chief Financial Officer, (ii) invoices for the Eligible Equipment and related other documentation as required by Section 2.1(b), (iii) to the extent
not previously delivered but subject to Section 4.1(g) above, Landlord Consents or Bailee Agreements, as applicable, for the premises where the Financed Equipment will, upon completion of transit, be located, and (iv) a Release
Letter from each Incumbent Lender with respect to the Financed Equipment purchased with the proceeds of such Advance. 
 (b) The representations and warranties set forth in this Agreement and in Section 5 and in the Warrant shall be true and correct in all material respects on and as of the Advance Date with the same
effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date. 
 (c) Each Advance Request shall be deemed to constitute a representation and warranty by Borrower on the relevant Advance Date as to the matters specified in paragraph (b) of this Section 4.2 and
Section 4.3 and as to the matters set forth in the Advance Request. 
 4.3 No Default. As of the Closing
Date and each Advance Date, (i) no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default and (ii) no event that has had or could reasonably be expected to
have a Material Adverse Effect has occurred and is continuing. 
 SECTION 5. REPRESENTATIONS AND WARRANTIES OF BORROWER

  
 12 

 Borrower represents and warrants that: 

5.1 Corporate Status. Borrower is a corporation duly organized, legally existing and in good standing under the laws of
the State of Delaware, and is duly qualified as a foreign corporation in all jurisdictions in which the nature of its business or location of its properties require such qualifications and where the failure to be qualified could reasonably be
expected to have a Material Adverse Effect. Borrower’s present name, former names (if any), locations, place of formation, tax identification number, organizational identification number and other information are correctly set forth in Exhibit
C, as may be updated by Borrower in a written notice (including any Compliance Certificate) provided to Lender after the Closing Date. 
 5.2 Collateral. Borrower owns the Collateral, free of all Liens, except for Permitted Liens. Borrower has the power and authority to grant to Lender a Lien in the Collateral as security for the Secured
Obligations. 
 5.3 Consents. Borrower’s execution, delivery and performance of the Notes, this Agreement
and all other Loan Documents, and Borrower’s execution of the Warrant, (i) have been duly authorized by all necessary corporate action of Borrower, (ii) will not result in the creation or imposition of any Lien upon the Collateral,
other than Permitted Liens and the Liens created by this Agreement and the other Loan Documents, (iii) do not violate any provisions of Borrower’s Certificate or Articles of Incorporation (as applicable), bylaws, or any, law, regulation,
order, injunction, judgment, decree or writ to which Borrower is subject and (iv) except as described on Schedule 5.3, do not violate any contract or agreement or require the consent or approval of any other Person. The individual or
individuals executing the Loan Documents and the Warrant are duly authorized to do so. 
 5.4 Material Adverse
Effect. Since December 31, 2010, no event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing. 
 5.5 Actions Before Governmental Authorities. Except as described on Schedule 5.5, there are no actions, suits or proceedings at law or in equity or by or before any governmental authority (a) as of
the Closing Date, pending or, to the knowledge of Borrower, threatened against or affecting Borrower or its property, and (b) following the Closing Date, which could reasonably be expected to have a Material Adverse Effect. 

5.6 Laws. Borrower is not in violation of any law, rule or regulation, or in default with respect to any judgment, writ,
injunction or decree of any governmental authority, where such violation or default is reasonably expected to result in a Material Adverse Effect. Borrower is not in default in any manner under any provision of any agreement or instrument evidencing
indebtedness, or any other material agreement to which it is a party or by which it is bound. 
 5.7 Information
Correct and Current. No information, report, Advance Request, financial statement, exhibit or schedule furnished, by or on behalf of Borrower to Lender in 

  
 13 

 
connection with any Loan Document or included therein or delivered pursuant thereto contained, contains or will contain any material misstatement of fact or omitted, omits or will omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under which they were, are or will be made, not misleading at the time such statement was made or deemed made. Additionally, any and all financial or
business projections provided by Borrower to Lender shall be (i) provided in good faith and based on the most current data and information available to Borrower, and (ii) the most current of such projections approved by Borrower’s
Board of Directors. 
 5.8 Tax Matters. Except as described on Schedule 5.8, (a) Borrower has filed all
federal and material state and local tax returns that it is required to file and all such tax returns are true and correct in all material respects, (b) Borrower has duly paid or fully reserved for all taxes or installments thereof (including
any interest or penalties) as and when due, which have or may become due pursuant to such returns, and (c) Borrower has paid or fully reserved for any tax assessment received by Borrower for the three (3) years preceding the Closing Date,
if any (including any taxes being contested in good faith and by appropriate proceedings). 
 5.9 Intellectual
Property Claims. Borrower is the sole owner of, or otherwise has the right to use, the Intellectual Property. Except as described on Schedule 5.9, (i) each of the material Copyrights, Trademarks and Patents is valid and enforceable,
(ii) no material part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and (iii) no claim has been made to Borrower that any material part of the Intellectual Property violates the rights of any
third party. 
 5.10 Intellectual Property. Except as described on Schedule 5.10, Borrower has all material
rights with respect to Intellectual Property necessary in the operation or other utilization of the Collateral. Without limiting the generality of the foregoing, and in the case of Licenses, except for restrictions that are unenforceable under
Division 9 of the UCC, Borrower has the right, to the extent required to grant a security interest in and operate or otherwise utilize the Collateral, to freely transfer, license or assign the related Intellectual Property without condition,
restriction or payment of any kind (other than license payments in the ordinary course of business) to any third party. 
 5.11 [Reserved.] 
 5.12 [Reserved.] 

5.13 Employee Loans. (i) Except as expressly permitted by Sections 7.7 and 7.8, Borrower has no outstanding loans to
any employee, officer or director of the Borrower, and (ii) Borrower has not guaranteed the payment of any loan made to an employee, officer or director of the Borrower by a third party. 

5.14 Capitalization and Subsidiaries. Borrower’s capitalization as of the Closing Date is set forth on Schedule 5.14
annexed hereto. Borrower does not own any stock, partnership interest or other securities of any Person, except for Permitted Investments. 
  

  
 14 

 
Attached as Schedule 5.14, as may be updated by Borrower in a written notice provided after the Closing Date, is a true, correct and complete list of each Subsidiary. 

SECTION 6. INSURANCE; INDEMNIFICATION 
 6.1 Coverage. Borrower shall cause to be carried and maintained commercial general liability insurance, on an occurrence form, against risks customarily insured against in Borrower’s line of
business. Such risks shall include the risks of bodily injury, including death, property damage, personal injury, advertising injury, and contractual liability per the terms of the indemnification agreement found in Section 6.3. Borrower must
maintain a minimum of $1,000,000 of commercial general liability insurance for each occurrence. So long as there are any Secured Obligations outstanding, Borrower shall also cause to be carried and maintained insurance upon the Collateral, insuring
against all risks of physical loss or damage howsoever caused, in an amount not less than the full replacement cost of the Collateral, provided that such insurance may be subject to standard exceptions and deductibles. Borrower shall also carry and
maintain a fidelity insurance policy in an amount not less than $100,000. 
 6.2 Certificates. Borrower shall
deliver to Lender certificates of insurance that evidence Borrower’s compliance with its insurance obligations in Section 6.1 and the obligations contained in this Section 6.2. Borrower’s insurance certificate shall state Lender
is an additional insured for commercial general liability, an additional insured and a loss payee for all risk property damage insurance, subject to the insurer’s approval, a loss payee for property insurance. Attached to the certificates of
insurance will be additional insured endorsements, or copies of policy forms evidencing Lender is an additional insured, for liability and lender’s loss payable endorsements for all risk property damage insurance. All certificates of insurance
will provide for advance written notice to Lender of cancellation. Promptly upon Lender’s request, Borrower shall provide evidence of current payment of insurance premiums in form and substance reasonably satisfactory to Lender. Any failure of
Lender to scrutinize such insurance certificates or such evidence of payment of premiums for compliance is not a waiver of any of Lender’s rights, all of which are reserved. 

6.3 Indemnity. Borrower agrees to indemnify and hold Lender and its officers, directors, employees, agents, in-house
attorneys, representatives and shareholders harmless from and against any and all claims, costs, expenses, damages and liabilities (including such claims, costs, expenses, damages and liabilities based on liability in tort, including strict
liability in tort), including reasonable attorneys’ fees and disbursements and other costs of investigation or defense (including those incurred upon any appeal), that may be instituted or asserted against or incurred by Lender or any such
Person as the result of credit having been extended, suspended or terminated under this Agreement and the other Loan Documents or the administration of such credit, or in connection with or arising out of the transactions contemplated hereunder and
thereunder, or any actions or failures to act in connection therewith, or arising out of the disposition or utilization of the Collateral, excluding in all cases claims resulting solely from Lender’s gross negligence or willful misconduct.
Borrower agrees to pay, and to save Lender harmless from, any and all 

  
 15 

 
liabilities with respect to, or resulting from any delay in paying, any and all excise, sales or other similar taxes (excluding taxes imposed on or measured by the net income of Lender) that may
be payable or determined to be payable with respect to any of the Collateral or this Agreement. 
 SECTION 7. COVENANTS OF BORROWER

 Borrower agrees as follows: 
 7.1 Financial Reports. Borrower shall furnish to Lender the Compliance Certificate in the form of Exhibit D monthly within 30 days after the end of each month and the financial statements listed
hereinafter (the “Financial Statements”): 
 (a) as soon as practicable (and in any event, within 30
days after the end of each of the first two months of each fiscal quarter, and within 45 days after the end of the last month of each fiscal quarter), unaudited interim and year-to-date financial statements as of the end of such month (prepared on a
consolidated basis), including balance sheet and related statements of income and cash flows accompanied by a report detailing any material contingencies (including the commencement of any material litigation by or against Borrower) or any other
occurrence that would reasonably be expected to have a Material Adverse Effect, all certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP, except
(i) for the absence of footnotes, (ii) that they are subject to normal year end adjustments, and (iii) they do not contain certain non-cash items that are customarily included in quarterly and annual financial statements; 

(b) as soon as practicable (and in any event within 45 days) after the end of each calendar quarter, unaudited interim and
year-to-date financial statements as of the end of such calendar quarter (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income and cash flows accompanied by a report detailing
any material contingencies (including the commencement of any material litigation by or against Borrower) or any other occurrence that would reasonably be expected to have a Material Adverse Effect, certified by Borrower’s Chief Executive
Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP, except (i) for the absence of footnotes, and (ii) that they are subject to normal year end adjustments; as well as the most recent
capitalization table for Borrower, including the weighted average exercise price of employee stock options; 

(c) as soon as practicable (and in any event within 180 days) after the end of each fiscal year (beginning with the 2011
fiscal year of Parent), unqualified audited financial statements as of the end of such year (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income and cash flows, and setting
forth in comparative form the corresponding figures for the preceding fiscal year, certified by a firm of independent certified public accountants selected by Borrower and reasonably acceptable to Lender (it being

  
 16 

 
understood that Deloitte & Touch LLP is acceptable to Lender), accompanied by any management report from such accountants; 

(d) promptly after the sending or filing thereof, as the case may be, copies of any proxy statements, financial statements
or reports that Borrower has made available to holders of its stock and copies of any regular, periodic and special reports or registration statements that Borrower files with the Securities and Exchange Commission or any governmental authority that
may be substituted therefor, or any national securities exchange; 
 (e) [Reserved]; and 

(f) financial and business projections promptly following their approval by Borrower’s Board of Directors, as well as
operating plans and other financial information reasonably requested by Lender; provided, that annual budget projections approved by the Borrower’s Board of Directors with respect to any fiscal year shall be delivered to Lender no later
than 30 days after the end of the immediately preceding fiscal year of Borrower. 
 The executed Compliance Certificate may be
sent via facsimile to Lender at (650) 473-9194 or via e-mail to tfissori@herculestech.com. All Financial Statements required to be delivered pursuant to clauses (a), (b) and (c) shall be sent via e-mail to
financialstatements@herculestech.com with a copy to tfissori@herculestech.com provided, that if e-mail is not available or sending such Financial Statements via e-mail is not possible, they shall be sent via facsimile to Lender at:
(866) 468-8916, attention Chief Credit Officer. 
 7.2 Collateral Audits; Management Rights. Borrower shall
permit any representative that Lender authorizes, including its attorneys and accountants, to inspect the Collateral and examine and make copies and abstracts of the books of account and records of Borrower relating to the Collateral at reasonable
times and upon reasonable notice during normal business hours; provided, that such inspections will be conducted no more than once every 6 months unless an Event of Default has occurred and is continuing. In addition, any such representative shall
have the right to meet with management and officers of Borrower to discuss Borrower’s books of account and records. In addition, Lender shall be entitled at reasonable times and intervals to consult with and advise the management and officers
of Borrower concerning significant business issues affecting Borrower. Such consultations shall not unreasonably interfere with Borrower’s business operations. The parties intend that the rights granted Lender shall constitute “management
rights” within the meaning of 29 C.F.R Section 2510.3-101(d)(3)(ii), but that any advice, recommendations or participation by Lender with respect to any business issues shall not be deemed to give Lender, nor be deemed an exercise by
Lender of, control over Borrower’s management or policies. 
 7.3 Further Assurances. Borrower shall from
time to time execute, deliver and file, alone or with Lender, any financing statements, security agreements, collateral assignments, notices, control agreements, or other documents to perfect or give the highest priority to Lender’s Lien on the
Collateral. Borrower shall from time to time procure any 

  
 17 

 
instruments or documents as may be requested by Lender, and take all further action that may be necessary or desirable, or that Lender may reasonably request, to perfect and protect the Liens
granted hereby and thereby. In addition, and for such purposes only, Borrower hereby authorizes Lender to execute and deliver on behalf of Borrower and to file such financing statements, collateral assignments, notices, security agreements and other
documents without the signature of Borrower either in Lender’s name or in the name of Lender as agent and attorney-in-fact for Borrower. Borrower shall protect and defend Borrower’s title to the Collateral and Lender’s Lien thereon
against all Persons claiming any interest adverse to Borrower or Lender other than Permitted Liens. Borrower shall specify in writing the location where each item of Collateral is located promptly upon the request of Lender. 

7.4 [Reserved.] 
 7.5 Indebtedness. Borrower shall not create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or
prepay any Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness (other than Indebtedness described in clause (ii) or, subject to the Investors Subordination Agreement, (viii) of the definition
of Permitted Indebtedness, in each case as modified by clause (ix) of such definition), except for the conversion of Indebtedness into equity securities and the payment of cash in lieu of fractional shares in connection with such conversion.

 7.6 Collateral. Borrower shall at all times keep the Collateral free and clear from any legal process or Liens
whatsoever (except for Permitted Liens), and shall give Lender prompt written notice of any legal process affecting the Collateral or any Liens thereon. Borrower shall not affix, or allow the affixing of, any of the Financed Equipment to any real
property in such a manner, or with such intent, as to become a fixture. 
 7.7 Investments. Borrower shall not
directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments. 
 7.8 Distributions. Borrower shall not, and shall not allow any Subsidiary to, (a) repurchase or redeem any class of stock or other equity interest other than (i) pursuant to employee, director
or consultant stock purchase or repurchase plans or other similar agreements, and (ii) in connection with conversions of its convertible securities (including warrants) into other securities pursuant to the terms of such convertible securities,
or (b) declare or pay any cash dividend or make a cash distribution on any class of stock or other equity interest, except that a Subsidiary may pay dividends or make distributions to Parent, or (c) lend money to any employees, officers or
directors except as expressly permitted by clause (viii), (ix) or (xvi) of the definition of Permitted Investments, or (d) waive, release or forgive any indebtedness owed by any employees, officers or directors in excess of $500,000
in the aggregate. 

  
 18 

 7.9 Transfers. Except for Permitted Transfers, Borrower shall not
voluntarily or involuntarily transfer, sell, lease, license, lend or in any other manner convey any equitable, beneficial or legal interest in any material portion of their assets. 

7.10 Mergers or Acquisitions. Borrower shall not merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower), or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock, assets or property of another Person without the prior written consent of Lender. 
 7.11 Taxes.
Borrower and its Subsidiaries shall pay when due all material taxes, fees or other charges of any nature whatsoever (together with any related interest or penalties) now or hereafter imposed or assessed by applicable law against Borrower, Lender
(assessed in connection with the making of the Loan hereunder but excluding any taxes on Lender’s net income), or the Collateral or upon Borrower’s ownership, possession, use, operation or disposition thereof or upon Borrower’s rents,
receipts or earnings arising therefrom. Borrower shall file on or before the due date therefor all personal property tax returns in respect of the Collateral, if necessary or appropriate. Notwithstanding the foregoing, Borrower may contest, in good
faith and by appropriate proceedings, taxes for which Borrower maintains adequate reserves therefor in accordance with GAAP. 
 7.12 Corporate Changes; Changes in Location of Collateral. Neither Borrower nor any Subsidiary shall change its corporate name, legal form or jurisdiction of formation without twenty (20) days’
prior written notice to Lender. Neither Borrower nor any Subsidiary shall relocate its chief executive office or its principal place of business unless: (i) it has provided prior written notice to Lender; and (ii) such relocation shall be
within the continental United States. Neither Borrower nor any Subsidiary shall relocate any item of Collateral unless (y) in the case of Equipment other than International Based Financed Equipment, such relocation is within the continental
United States, and (z) such Collateral at all times remains subject to a Landlord Consent or a Bailee Agreement, as applicable, which is valid and enforceable against the Person in possession of such Collateral or the premises where such
Collateral is located. 
 7.13 [Reserved.] 

7.14 Subsidiaries. Borrower shall notify Lender of each Subsidiary formed subsequent to the Closing Date and, within 30
days of formation, shall cause any such domestic Subsidiary so formed to execute and deliver to Lender a Joinder Agreement. 
 7.15 Post-Closing Matters. If any International Based Financed Equipment is not located at a permitted foreign location, or is not in transit thereto, within 90 days following the Advance Date applicable
to such International Based Financed Equipment, then Borrower shall deliver, or cause to be delivered, promptly to Lender fully-executed Landlord Consents for any premises where such International Based Financed Equipment is located. 

  
 19 

 SECTION 8. [RESERVED.] 
 SECTION 9. EVENTS OF DEFAULT 
 The occurrence of any one or more of
the following events shall be an Event of Default: 
 9.1 Payments. Borrower fails to pay any amount due under
this Agreement, the Notes or any of the other Loan Documents on the due date; or 
 9.2 Covenants. Borrower
breaches or defaults in the performance of any covenant or Secured Obligation under this Agreement, the Notes, or any of the other Loan Documents, and (a) with respect to a default under any covenant under this Agreement (other than under
Sections 6, 7.5, 7.6, 7.7, 7.8 or 7.9) which is capable of being cured by Borrower, such default continues for more than twenty (20) days after the earlier of the date on which (i) Lender has given notice of such default to Borrower and
(ii) Borrower has actual knowledge of such default, or (b) with respect to a default under any of Sections 6, 7.5, 7.6, 7.7, 7.8 or 7.8 or 7.9, the occurrence of such default; or 

9.3 Material Adverse Effect. A circumstance has occurred that would reasonably be expected to have a Material Adverse
Effect; or 
 9.4 Other Loan Documents. The occurrence of any default under any Loan Document not otherwise
specifically referenced in this Section 9 or any other agreement between Borrower and Lender, and if such default is capable of being cured by Borrower, such default continues for more than twenty (20) days after the earlier of the date on
which (a) Lender has given notice of such default to Borrower, or (b) Borrower has actual knowledge of such default; or 
 9.5 Representations. Any representation or warranty made by Borrower in any Loan Document or in the Warrant shall have been false or misleading in any material respect; or 

9.6 Insolvency. Borrower (A) (i) shall make an assignment for the benefit of creditors; or (ii) shall be
unable to pay its debts as they become due, or be unable to pay or perform under the Loan Documents, or shall otherwise become insolvent; or (iii) shall file a voluntary petition in bankruptcy; or (iv) shall file any petition, answer, or
document seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation pertinent to such circumstances; or (v) shall seek or
consent to or acquiesce in the appointment of any trustee, receiver, or liquidator of Borrower or of all or any substantial part (i.e., 33-1/3% or more) of the assets or property of Borrower; or (vi) shall cease operations of its business as
its business has normally been conducted, or terminate substantially all of its employees; or (vii) Borrower or its directors or majority shareholders shall take any action initiating any of the foregoing actions described in clauses (i)
through (vi); or (B) either (i) forty-five (45) days shall have expired after the commencement of an involuntary action against Borrower seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or
similar relief under any present or future statute, law or 

  
 20 

 
regulation, without such action being dismissed or all orders or proceedings thereunder affecting the operations or the business of Borrower being stayed; or (ii) a stay of any such order or
proceedings shall thereafter be set aside and the action setting it aside shall not be timely appealed; or (iii) Borrower shall file any answer admitting or not contesting the material allegations of a petition filed against Borrower in any
such proceedings; or (iv) the court in which such proceedings are pending shall enter a decree or order granting the relief sought in any such proceedings; or (v) forty-five (45) days shall have expired after the appointment, without
the consent or acquiescence of Borrower, of any trustee, receiver or liquidator of Borrower or of all or any substantial part of the properties of Borrower without such appointment being vacated; or 

9.7 Attachments; Judgments. Any portion of Borrower’s assets is attached or seized, or a levy is filed against any
such assets, or a judgment or judgments is/are entered for the payment of money, individually or in the aggregate, of at least $250,000 and such judgment remains unstayed for a period of ten (10) days, or Borrower is enjoined or in any way
prevented by court order from conducting any part of its business; or 
 9.8 Other Obligations. The occurrence of
any default under any agreement or obligation of Borrower involving any Indebtedness which results in a right by a third party or parties, whether or not exercised, to accelerate the maturity of such Indebtedness in excess of $250,000, or the
occurrence of any default under any agreement or obligation of Borrower that could reasonably be expected to have a Material Adverse Effect. 

SECTION 10. REMEDIES 
 10.1 General. Upon and during the continuance of any one or more Events of Default, (i) Lender may, at its option, accelerate and demand payment of all or any part of the Secured Obligations and
declare them to be immediately due and payable (provided, that upon the occurrence of an Event of Default of the type described in Section 9.6, the Notes and all of the Secured Obligations shall automatically be accelerated and made due and
payable, in each case without any further notice or act), and (ii) Lender may notify any of Borrower’s account debtors to make payment directly to Lender, compromise the amount of any such account on Borrower’s behalf and endorse
Lender’s name without recourse on any such payment for deposit directly to Lender’s account. Lender may exercise all rights and remedies with respect to the Collateral under the Loan Documents or otherwise available to it under the UCC and
other applicable law, including the right to release, hold, sell, lease, liquidate, collect, realize upon, or otherwise dispose of all or any part of the Collateral and the right to occupy, utilize, process and commingle the Collateral. All
Lender’s rights and remedies shall be cumulative and not exclusive. 
 10.2 Collection; Foreclosure. Upon
the occurrence and during the continuance of any Event of Default, Lender may, at any time or from time to time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of, any or all of the Collateral, in its then condition
or following any commercially reasonable preparation or processing, in such order as Lender may elect. Any such sale may be made either at public or private sale at its place of business or elsewhere. Borrower agrees that any such public or private
sale may occur upon ten (10) calendar days’ prior written notice to Borrower. 

  
 21 

 
Lender may require Borrower to assemble the Collateral and make it available to Lender at a place designated by Lender that is reasonably convenient to Lender and Borrower. The proceeds of any
sale, disposition or other realization upon all or any part of the Collateral shall be applied by Lender in the following order of priorities: 
 First, to Lender in an amount sufficient to pay in full Lender’s costs and professionals’ and advisors’ fees and expenses as described in Section 11.11; 

Second, to Lender in an amount equal to the then unpaid amount of the Secured Obligations (including principal, interest, and the Default
Rate interest), in such order and priority as Lender may choose in its sole discretion; and 
 Finally, after the full, final,
and indefeasible payment in Cash of all of the Secured Obligations, to any creditor holding a junior Lien on the Collateral, or to Borrower or its representatives or as a court of competent jurisdiction may direct. 

Lender shall be deemed to have acted reasonably in the custody, preservation and disposition of any of the Collateral if it complies with the obligations
of a secured party under the UCC. 
 10.3 No Waiver. Lender shall be under no obligation to marshal any of the
Collateral for the benefit of Borrower or any other Person, and Borrower expressly waives all rights, if any, to require Lender to marshal any Collateral. 
 10.4 Cumulative Remedies. The rights, powers and remedies of Lender hereunder shall be in addition to all rights, powers and remedies given by statute or rule of law and are cumulative. The exercise of
any one or more of the rights, powers and remedies provided herein shall not be construed as a waiver of or election of remedies with respect to any other rights, powers and remedies of Lender. 

SECTION 11. MISCELLANEOUS 
 11.1 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall
be prohibited by or invalid under such law, such provision shall be ineffective only to the extent and duration of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 11.2 Notice. Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration,
service of process or other communication (including the delivery of Financial Statements) that is required, contemplated, or permitted under the Loan Documents or with respect to the subject matter hereof shall be in writing, and shall be deemed to
have been validly served, given, delivered, and received upon the earlier of: (i) the day of transmission by facsimile or hand delivery or delivery by an overnight express service or overnight mail delivery service; or (ii) the third
calendar day after deposit in the United States mails, with proper first class postage prepaid, in each case addressed to the party to be notified as follows: 

  
 22 

	 	(a)	If to Lender: 

 HERCULES
TECHNOLOGY GROWTH CAPITAL, INC. 
 Legal Department 
 Attention: Chief Legal Officer and Todd Jaquez-Fissori 
 400 Hamilton Avenue,
Suite 310 
 Palo Alto, CA 94301 
  

	 	(b)	If to Borrower: 

 ENPHASE
ENERGY, INC. 
 Attention: Chief Financial Officer 
 201 First Street, Suite 300 
 Petaluma, CA 94952 

or to such other address as each party may designate for itself by like notice. 

11.3 Entire Agreement; Amendments. This Agreement, the Notes, and the other Loan Documents constitute the entire agreement
and understanding of the parties hereto in respect of the subject matter hereof and thereof, and supersede and replace in their entirety any prior proposals, term sheets, letters, negotiations or other documents or agreements, whether written or
oral, with respect to the subject matter hereof or thereof (including Lender’s revised proposal letter dated March 30, 2011). None of the terms of this Agreement, the Notes or any of the other Loan Documents may be amended except by an
instrument executed by each of the parties hereto. 
 11.4 No Strict Construction. The parties hereto have
participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 11.5 No Waiver. The powers conferred upon Lender by this Agreement are solely to protect its rights hereunder and under the other Loan Documents and its interest in the Collateral and shall not impose any
duty upon Lender to exercise any such powers. No omission or delay by Lender at any time to enforce any right or remedy reserved to it, or to require performance of any of the terms, covenants or provisions hereof by Borrower at any time designated,
shall be a waiver of any such right or remedy to which Lender is entitled, nor shall it in any way affect the right of Lender to enforce such provisions thereafter. 

11.6 Survival. All agreements, representations and warranties contained in this Agreement, the Notes and the other Loan
Documents or in any document delivered pursuant hereto or thereto shall be for the benefit of Lender and shall survive the execution and delivery of this Agreement and the expiration or other termination of this Agreement. 

  
 23 

 11.7 Successors and Assigns. The provisions of this Agreement and the other
Loan Documents shall inure to the benefit of and be binding on Borrower and its permitted assigns (if any). Borrower shall not assign its obligations under this Agreement, the Notes or any of the other Loan Documents without Lender’s express
prior written consent, and any such attempted assignment shall be void and of no effect. Lender may assign, transfer, or endorse its rights hereunder and under the other Loan Documents without prior notice to Borrower, and all of such rights shall
inure to the benefit of Lender’s successors and assigns. 
 11.8 Governing Law. This Agreement, the Notes
and the other Loan Documents have been negotiated and delivered to Lender in the State of California, and shall have been accepted by Lender in the State of California. Payment to Lender by Borrower of the Secured Obligations is due in the State of
California. This Agreement, the Notes and the other Loan Documents shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles that would cause the application of
laws of any other jurisdiction. 
 11.9 Consent to Jurisdiction and Venue. All judicial proceedings (to the
extent that the reference requirement of Section 11.10 is not applicable) arising in or under or related to this Agreement, the Notes or any of the other Loan Documents may be brought in any state or federal court located in the State of
California. By execution and delivery of this Agreement, each party hereto generally and unconditionally: (a) consents to nonexclusive personal jurisdiction in Santa Clara County, State of California; (b) waives any objection as to
jurisdiction or venue in Santa Clara County, State of California; (c) agrees not to assert any defense based on lack of jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be bound by any judgment rendered thereby
in connection with this Agreement, the Notes or the other Loan Documents. Service of process on any party hereto in any action arising out of or relating to this Agreement shall be effective if given in accordance with the requirements for notice
set forth in Section 11.2, and shall be deemed effective and received as set forth in Section 11.2. Nothing herein shall affect the right to serve process in any other manner permitted by law or shall limit the right of either party to
bring proceedings in the courts of any other jurisdiction. 
 11.10 Mutual Waiver of Jury Trial / Judicial
Reference. 
 (a) Because disputes arising in connection with complex financial transactions are most quickly and
economically resolved by an experienced and expert person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes be resolved by a judge applying such applicable laws.
EACH OF BORROWER AND LENDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY BORROWER AGAINST
LENDER OR ITS ASSIGNEE OR BY LENDER OR ITS ASSIGNEE AGAINST BORROWER. This waiver extends to all such Claims, including Claims that involve Persons other than 

  
 24 

 
Borrower and Lender; Claims that arise out of or are in any way connected to the relationship between Borrower and Lender; and any Claims for damages, breach of contract, tort, specific
performance, or any equitable or legal relief of any kind, arising out of this Agreement, any other Loan Document. 
 (b) If the waiver of jury trial set forth in Section 11.10(a) is ineffective or unenforceable, the parties agree that all Claims shall be resolved by reference to a private judge sitting without a
jury, pursuant to Code of Civil Procedure Section 638, before a mutually acceptable referee or, if the parties cannot agree, a referee selected by the Presiding Judge of the Santa Clara County, California. Such proceeding shall be conducted in
Santa Clara County, California, with California rules of evidence and discovery applicable to such proceeding. 

(c) In the event Claims are to be resolved by judicial reference, either party may seek from a court identified in
Section 11.9, any prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law notwithstanding that all Claims are otherwise subject to resolution by judicial
reference. 
 11.11 Professional Fees. Borrower promises to pay Lender’s fees and expenses necessary to
finalize the loan documentation, including but not limited to reasonable attorneys fees, UCC searches, filing costs, and other miscellaneous expenses. In addition, Borrower promises to pay any and all reasonable attorneys’ and other
professionals’ fees and expenses (including fees and expenses of in-house counsel) incurred by Lender after the Closing Date in connection with or related to: (a) the Loan; (b) the administration, collection, or enforcement of the
Loan; (c) the amendment or modification of the Loan Documents; (d) any waiver, consent, release, or termination under the Loan Documents; (e) the protection, preservation, sale, lease, liquidation, or disposition of Collateral or the
exercise of remedies with respect to the Collateral; (f) any legal, litigation, administrative, arbitration, or out of court proceeding in connection with or related to Borrower or the Collateral, and any appeal or review thereof; and
(g) any bankruptcy, restructuring, reorganization, assignment for the benefit of creditors, workout, foreclosure, or other action related to Borrower, the Collateral, the Loan Documents, including representing Lender in any adversary proceeding
or contested matter commenced or continued by or on behalf of Borrower’s estate, and any appeal or review thereof. 
 11.12 Confidentiality. Lender acknowledges that certain items of Collateral and information provided to Lender by Borrower are confidential and proprietary information of Borrower, if and to the extent
such information either (x) is marked as confidential by Borrower at the time of disclosure, or (y) should reasonably be understood to be confidential (the “Confidential Information”). Accordingly, Lender agrees that any
Confidential Information it may obtain in the course of acquiring, administering, or perfecting Lender’s security interest in the Collateral shall not be disclosed to any other person or entity in any manner whatsoever, in whole or in part,
without the prior written consent of Borrower, except that Lender may disclose any such information: (a) to its own directors, officers, employees, accountants, counsel and other professional advisors and to

  
 25 

 
its affiliates if Lender in its sole discretion determines that any such party should have access to such information in connection with such party’s responsibilities in connection with the
Loan or this Agreement and, provided that such recipient of such Confidential Information either (i) agrees to be bound by the confidentiality provisions of this paragraph or (ii) is otherwise subject to confidentiality restrictions that
reasonably protect against the disclosure of Confidential Information; (b) if such information is otherwise generally available to the public through no fault of Lender; (c) if required or appropriate in any report, statement or testimony
submitted to any governmental authority having or claiming to have jurisdiction over Lender; (d) if required or appropriate in response to any summons or subpoena or in connection with any litigation, to the extent permitted or deemed advisable
by Lender’s counsel; (e) to comply with any legal requirement or law applicable to Lender; (f) to the extent reasonably necessary in connection with the exercise of any right or remedy under any Loan Document, including Lender’s
sale, lease, or other disposition of Collateral after default; (g) to any participant or assignee of Lender or any prospective participant or assignee; provided, that such participant or assignee or prospective participant or assignee agrees in
writing to be bound by this Section prior to disclosure; or (h) otherwise with the prior consent of Borrower; provided, that any disclosure made in violation of this Agreement shall not affect the obligations of Borrower or any of its
affiliates or any guarantor under this Agreement or the other Loan Documents. 
 11.13 Assignment of Rights.
Borrower acknowledges and understands that Lender may sell and assign all or part of its interest hereunder and under the Note(s) and Loan Documents to any person or entity (an “Assignee”). After such assignment the term “Lender”
as used in the Loan Documents shall mean and include such Assignee, and such Assignee shall be vested with all rights, powers and remedies of Lender hereunder with respect to the interest so assigned; but with respect to any such interest not so
transferred, Lender shall retain all rights, powers and remedies hereby given. No such assignment by Lender shall relieve Borrower of any of its obligations hereunder. Lender agrees that in the event of any transfer by it of the Note(s), it will
endorse thereon a notation as to the portion of the principal of the Note(s), which shall have been paid at the time of such transfer and as to the date to which interest shall have been last paid thereon. 

11.14 Revival of Secured Obligations. This Agreement and the Loan Documents shall remain in full force and effect and
continue to be effective if any petition is filed by or against Borrower for liquidation or reorganization, if Borrower becomes insolvent or makes an assignment for the benefit of creditors, if a receiver or trustee is appointed for all or any
significant part of Borrower’s assets, or if any payment or transfer of Collateral is recovered from Lender. The Loan Documents and the Secured Obligations and Collateral security shall continue to be effective, or shall be revived or
reinstated, as the case may be, if at any time payment and performance of the Secured Obligations or any transfer of Collateral to Lender, or any part thereof is rescinded, avoided or avoidable, reduced in amount, or must otherwise be restored or
returned by, or is recovered from, Lender or by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment, performance, or transfer of Collateral
had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, avoided, avoidable, restored, returned, or recovered, the Loan 

  
 26 

 
Documents and the Secured Obligations shall be deemed, without any further action or documentation, to have been revived and reinstated except to the extent of the full, final, and indefeasible
payment to Lender in Cash. 
 11.15 Counterparts. This Agreement and any amendments, waivers, consents or
supplements hereto may be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the
same instrument. 
 11.16 No Third Party Beneficiaries. No provisions of the Loan Documents are intended, nor
will be interpreted, to provide or create any third-party beneficiary rights or any other rights of any kind in any person other than Lender and Borrower unless specifically provided otherwise herein, and, except as otherwise so provided, all
provisions of the Loan Documents will be personal and solely between the Lender and the Borrower. 
 11.17
Publicity. Lender may use Borrower’s name and logo, and include a brief description of the relationship between Borrower and Lender, in Lender’s marketing materials. 

11.18 Joint and Several Liability. Each of Parent and the Joined Subsidiaries is accepting joint and several liability
hereunder and under the other Loan Documents in consideration of the financial accommodations to be provided by Lender under this Agreement, for the mutual benefit, directly and indirectly, of each of Parent and the Joined Subsidiaries and in
consideration of their undertakings to accept joint and several liability for the Secured Obligations. Each of Parent and the Joined Subsidiaries, jointly and severally, hereby irrevocably, absolutely and unconditionally accepts, not merely as a
surety but also as a co-debtor, joint and several liability with respect to the payment and performance of all of the Secured Obligations (including, without limitation, any Secured Obligations arising under this Section 11.18), it being
the intention of Parent and the Joined Subsidiaries that all the Secured Obligations shall be the joint and several obligations of Parent and the Joined Subsidiaries without preferences or distinction among them. If and to the extent that any of
Parent or the Joined Subsidiaries shall fail to make any payment with respect to any of the Secured Obligations as and when due or to perform any of the Secured Obligations in accordance with the terms thereof, then in each such event, the other
Persons composing Borrower will make such payment with respect to, or perform, such Secured Obligation. Each of Parent and the Joined Subsidiaries hereby agrees that it will not enforce any of its rights of contribution or subrogation against any
other Persons composing Borrower with respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to Lender with respect to any of the Secured Obligations or any collateral security therefor
until such time as all of the Secured Obligations have been paid in full in cash. Any claim which any of Parent or the Joined Subsidiaries may have against any other Persons composing Borrower with respect to any payments to Lender hereunder or
under any other Loan Documents are hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Secured Obligations arising hereunder or thereunder, to the prior payment in full in cash of the
Secured Obligations and, in the event of any insolvency, bankruptcy, 

  
 27 

 
receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any of Parent or the Joined Subsidiaries, their respective debt or assets,
whether voluntary or involuntary, all such Secured Obligations shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Persons composing Borrower
therefor. 
 11.19 Administrative Borrower. Each of the Joined Subsidiaries irrevocably appoints Parent as the
borrowing agent and attorney-in-fact for all Persons composing Borrower which appointment shall remain in full force and effect unless and until Lender shall have received prior written notice signed by each of the Joined Subsidiaries that such
appointment has been revoked and that another Person has been so appointed. 
 (SIGNATURES TO FOLLOW) 

  
 28 

 IN WITNESS WHEREOF, Borrower and Lender have duly executed and delivered this Loan and
Security Agreement as of the day and year first above written. 
  

			
	BORROWER:
	
	 ENPHASE ENERGY, INC.,
 a Delaware corporation

		
	By:	 	 /s/ Sanjeev Kumar

	Name:	 	Sanjeev Kumar
	Title:	 	Chief Financial Officer

 Accepted in Palo Alto,
California: 
  

			
	LENDER:
	
	 HERCULES TECHNOLOGY
 GROWTH CAPITAL, INC.,
 a Maryland corporation

		
	By:	 	 /s/ K. Nicholas Martitsch

	Name:	 	K. Nicholas Martitsch
	Its:	 	Associate General Counsel

 Table of Exhibits and Schedules 

 

			
	Exhibit A:	  	Advance Request
		  	Attachment to Advance Request
		
	Exhibit B:	  	Term Note
		
	Exhibit C:	  	Name, Locations, and Other Information for Borrower
		
	Exhibit D:	  	Compliance Certificate
		
	Exhibit E:	  	Joinder Agreement
		
	Exhibit F:	  	ACH Debit Authorization Agreement
		
	Schedule 1	  	Subsidiaries
	Schedule 1A	  	Existing Permitted Indebtedness
	Schedule 1B	  	Existing Permitted Investments
	Schedule 1C	  	Existing Permitted Liens
	Schedule 5.3	  	Consents, Etc.
	Schedule 5.5	  	Actions Before Governmental Authorities
	Schedule 5.8	  	Tax Matters
	Schedule 5.9	  	Intellectual Property Claims
	Schedule 5.10	  	Intellectual Property
	Schedule 5.14	  	Capitalization

 EXHIBIT A 
 ADVANCE REQUEST 
  

									
	To:	  	Lender:	  		 	Date:	  	[    ] [    ], 2011
				
		  	 Hercules Technology Growth Capital, Inc.
 400 Hamilton Avenue, Suite 310
 Palo Alto, CA 94301

Facsimile: 
 Attn:
	 		  	

 Enphase Energy, Inc. (“Borrower”) hereby requests from Hercules Technology Growth Capital, Inc.
(“Lender”) an Advance in the amount of [    ] Dollars ($[    ],000,000) on [    ] [    ], 2011 (the “Advance Date”) pursuant to the Loan and Security
Agreement between Borrower and Lender (the “Agreement”). Capitalized words and other terms used but not otherwise defined herein are used with the same meanings as defined in the Agreement. 

Please: 
  

			
	(a)	  	Issue a check payable to
Borrower                                       
     
		
		  	 or

		
	(b)	  	Wire Funds to Borrower’s
account                                        
    

  

					
	Bank:	  	  
	  	
	Address:	  	  
	  	
		  	  
	  	
	ABA Number:	  	  
	  	
	Account Number:	  	  
	  	
	Account Name:	  	  
	  	

 Borrower represents that the conditions precedent to the Advance set forth in the Agreement are satisfied
and shall be satisfied upon the making of such Advance, including but not limited to: (i) that no event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing; (ii) that the
representations and warranties set forth in the Agreement and in the Warrant are and shall be true and correct in all material respects on and as of the Advance Date with the same effect as though made on and as of such date, except to the extent
such representations and warranties expressly relate to an earlier date; (iii) that Borrower is in compliance with all the terms and provisions set forth in each Loan Document on its part to be observed or performed; and (iv) that as of
the Advance Date, no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default under the Loan Documents. Borrower understands and acknowledges that Lender has the right to
review the financial information supporting this representation and, based upon such review in its sole discretion, Lender may decline to fund the requested Advance. 

 Borrower hereby represents that Borrower’s corporate status and locations have not
changed since the date of the Agreement or, if the Attachment to this Advance Request is completed, are as set forth in the Attachment to this Advance Request. 
 To secure the prompt payment by Borrower of all amounts from time to time outstanding under the Agreement, and the performance by Borrower of all the terms contained in the Agreement, Borrower grants
Lender, a first priority security interest in each item of equipment and other property described in Annex A hereto, which equipment and other property shall be deemed to be additional Financed Equipment and Collateral. The Agreement is
hereby incorporated by reference herein and is hereby ratified, approved and confirmed. 
 Borrower agrees to notify Lender
promptly before the funding of the Loan if any of the matters which have been represented above shall not be true and correct on the Borrowing Date and if Lender has received no such notice before the Advance Date then the statements set forth above
shall be deemed to have been made and shall be deemed to be true and correct as of the Advance Date. 
 [Remainder of page
intentionally left blank; signature page follows] 

 Executed as of
                    , 201[  ]. 
  

			
	BORROWER:
	
	ENPHASE ENERGY, INC.

			
		
	SIGNATURE:	 	  

			
	TITLE:	 	  

			
	PRINT NAME:	 	  

 ATTACHMENT TO ADVANCE REQUEST 

Dated:                     

 Borrower hereby represents and warrants to Lender that Borrower’s current name and organizational status is as follows: 

 

			
	Name:	  	Enphase Energy, Inc.
		
	Type of organization:	  	Corporation
		
	State of organization:	  	Delaware
		
	Organization file number:	  	4118583

 Borrower hereby represents and warrants to Lender that the street addresses, cities, states and postal codes of its
current locations are as follows: 

 Annex A to Advance Request 

The Financed Equipment being financed with the Advance which this Advance Request is being executed is listed below (such list may be
re-formatted as a spreadsheet). Upon the funding of such Advance, this schedule and the property described below automatically shall be deemed to be a part of the Collateral. 
 FINANCED EQUIPMENT 
 Description of Equipment 

Make 
 Serial # (if applicable) 

Quantity 
 PO # 

Invoice Date 
 Invoice # 

Cost 
 Location 

Title holder 
 TOTAL COST: 

 EXHIBIT B 
 SECURED TERM PROMISSORY NOTE 
  

					
	$[    ],000,000	  		  	Advance Date: [    ] [    ], 20[    ]
			
		  		  	Maturity Date: July 1, 2014

 FOR VALUE RECEIVED, ENPHASE ENERGY, INC., a Delaware corporation (“Parent”) and each of
Parent’s other subsidiaries joined to the Loan Agreement (“Joined Subsidiaries”, together with Parent hereinafter collectively referred to as the “Borrower”) hereby promise to pay to the order of Hercules Technology Growth
Capital, Inc., a Maryland corporation or the holder of this Note (the “Lender”) at 400 Hamilton Avenue, Suite 310, Palo Alto, CA 94301 or such other place of payment as the holder of this Secured Term Promissory Note (this “Promissory
Note”) may specify from time to time in writing, in lawful money of the United States of America, the principal amount of [    ] Million Dollars ($[    ],000,000) or such other principal amount as Lender
has advanced to Borrower, together with interest at a floating rate equal to the Interest Rate (as defined in the Credit Agreement (as defined below)) per annum based upon a year consisting of 360 days, with interest computed daily based on the
actual number of days in each month. 
 This Promissory Note is the Note referred to in, and is executed and delivered in
connection with, that certain Loan and Security Agreement dated June 13, 2011, by and between Borrower and Lender (as the same may from time to time be amended, modified or supplemented in accordance with its terms, the “Loan
Agreement”), and is entitled to the benefit and security of the Loan Agreement and the other Loan Documents (as defined in the Loan Agreement), to which reference is made for a statement of all of the terms and conditions thereof. All payments
shall be made in accordance with the Loan Agreement. All terms defined in the Loan Agreement shall have the same definitions when used herein, unless otherwise defined herein. An Event of Default under the Loan Agreement shall constitute a default
under this Promissory Note. 
 Borrower waives presentment and demand for payment, notice of dishonor, protest and notice of
protest under the UCC or any applicable law. Borrower agrees to make all payments under this Promissory Note without setoff, recoupment or deduction and regardless of any counterclaim or defense. This Promissory Note has been negotiated and
delivered to Lender and is payable in the State of California. This Promissory Note shall be governed by and construed and enforced in accordance with, the laws of the State of California, excluding any conflicts of law rules or principles that
would cause the application of the laws of any other jurisdiction. 
 [Remainder of page intentionally left blank; signature page
follows] 

			
	BORROWER FOR ITSELF AND	 	
	ON BEHALF OF ITS SUBSIDIARIES:	 	ENPHASE ENERGY, INC.

  

			
	Signature:	 	  

	Print Name:	 	  

	Title:	 	  

 EXHIBIT C 
 NAME, LOCATIONS, AND OTHER INFORMATION FOR BORROWER 
 1. Borrower
represents and warrants to Lender that Borrower’s current name and organizational status as of the Closing Date is as follows: 
  

			
	Name:	  	Enphase Energy, Inc.
		
	Type of organization:	  	Corporation
		
	State of organization:	  	Delaware
		
	Organization file number:	  	4118583
	
	Borrower’s fiscal year ends on December 31
	
	Borrower’s federal employer tax identification number is: 20-4645388

 2. Borrower represents and warrants to Lender that for five (5) years prior to the Closing Date,
Borrower did not do business under any other name or organization or form except the following: 
 Name: PVI Solutions, Inc.

 Used during dates of:  March 2006 - July 2007 

Type of organization:  Corporation 
 State of organization:   Delaware 
 Organization file
number:        4118583 
 3. Borrower represents and warrants to Lender that its chief
executive office is located at 201 First Street, Suite 100, Petaluma, CA 94952. 

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
 Hercules Technology Growth Capital, Inc. 

400 Hamilton Avenue, Suite 310 
 Palo Alto, CA
94301 
 Reference is made to that certain Loan and Security Agreement dated June 13, 2011 and all ancillary documents
entered into in connection with such Loan and Security Agreement all as may be amended from time to time, (hereinafter referred to collectively as the “Loan Agreement”) between Hercules Technology Growth Capital, Inc.
(“Hercules”) as Lender and Enphase Energy, Inc. (with each of the Joined Subsidiaries, the “Company”) as Borrower. All capitalized terms not defined herein shall have the same meaning as defined in the Loan Agreement. 

The undersigned is an Officer of the Company, knowledgeable of all Company financial matters, and is authorized to provide certification
of information regarding the Company; hereby certifies that in accordance with the terms and conditions of the Loan Agreement, the Company is in compliance for the period ending
             of all covenants, conditions and terms and hereby reaffirms that all representations and warranties contained therein are true and correct on and as of the date of this
Compliance Certificate with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, after giving effect in all cases to any standard(s) of materiality
contained in the Loan Agreement as to such representations and warranties. Attached are the required documents supporting the above certification. The undersigned further certifies that these are prepared in accordance with GAAP (except for the
absence of footnotes with respect to unaudited financial statement and subject to normal year end adjustments) and are consistent from one period to the next except as explained below. 

 

					
	REPORTING REQUIREMENT	  	REQUIRED	  	CHECK IF ATTACHED
			
	Interim Financial Statements	  	Monthly within 30 days (45 days for the last month in any fiscal quarter)	  	
			
	Interim Financial Statements	  	Quarterly within 45 days	  	
			
	Audited Financial Statements	  	FYE within 180 days	  	

  

					
	Very Truly Yours,
		
		 	 ENPHASE ENERGY, INC.,

as Borrower

					
			
		 	 Signature:
	 	  

		 	 Print Name:
	 	  

		 	 Title:
	 	  

 EXHIBIT E 
 FORM OF JOINDER AGREEMENT 
 This Joinder Agreement (the “Joinder
Agreement”) is made and dated as of [            ], 20[    ], and is entered into by and
between                    ., a              corporation
(“Subsidiary”), and HERCULES TECHNOLOGY GROWTH CAPITAL, INC., a Maryland corporation, as a Lender. 
 RECITALS

 A. Subsidiary’s affiliate, Enphase Energy, Inc. (“Company”) has entered into that certain Loan and
Security Agreement dated June 13, 2011, with Lender, as such agreement may be amended (the “Loan Agreement”), together with the other agreements executed and delivered in connection therewith; 

B. Subsidiary acknowledges and agrees that it will benefit both directly and indirectly from Company’s execution of the Loan
Agreement and the other agreements executed and delivered in connection therewith; 
 AGREEMENT 

NOW THEREFORE, Subsidiary and Lender agree as follows: 
  

	1.	The recitals set forth above are incorporated into and made part of this Joinder Agreement. Capitalized terms not defined herein shall have the meaning provided in the
Loan Agreement. 

  

	2.	By signing this Joinder Agreement, Subsidiary shall be bound by the terms and conditions of the Loan Agreement the same as if it were the Borrower (as defined in the
Loan Agreement) under the Loan Agreement, mutatis mutandis, provided however, that Lender shall have no duties, responsibilities or obligations to Subsidiary arising under or related to the Loan Agreement or the other agreements executed and
delivered in connection therewith. Rather, to the extent that Lender has any duties, responsibilities or obligations arising under or related to the Loan Agreement or the other agreements executed and delivered in connection therewith, those duties,
responsibilities or obligations shall flow only to Company and not to Subsidiary or any other person or entity. By way of example (and not an exclusive list): (a) Lender’s providing notice to Company in accordance with the Loan Agreement
or as otherwise agreed between Company and Lender shall be deemed provided to Subsidiary; (b) a Lender’s providing an Advance to Company shall be deemed an Advance to Subsidiary; and (c) Subsidiary shall have no right to request an
Advance or make any other demand on Lender. 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 [SIGNATURE PAGE TO JOINDER AGREEMENT] 

 

					
	SUBSIDIARY:
		
	  
	 	.

  

					
	     By:	 		 	
	     Name:	 		 	
	     Title:	 		 	
			
	     Address:	 		 	
		
	     Telephone:	 	  

	     Facsimile:	 	  

  

					
	 HERCULES TECHNOLOGY GROWTH
 CAPITAL, INC.,
 a Maryland corporation
	 	
			
	By:	 	  
	 	
	Name:	 	K. Nicholas Martitsch	 	
	Its:	 	Associate General Counsel	 	
		
	Address:	 	
	400 Hamilton Ave., Suite 310	 	
	Palo Alto, CA 94301	 	
	Facsimile: 	 	
	Telephone: 	 	

 EXHIBIT F 
 ACH DEBIT AUTHORIZATION AGREEMENT 
 Hercules Technology Growth Capital, Inc. 

400 Hamilton Avenue, Suite 310 
 Palo Alto, CA
94301 
 Re: Loan and Security Agreement dated June 13, 2011 between Enphase Energy, Inc. 

(the “Borrower”) and Hercules Technology Growth Capital, Inc. (“Company”) (the “Agreement”) 

In connection with the above referenced Agreement, the Borrower hereby authorizes the Company to initiate debit entries for the periodic payments due
under the Agreement to the Borrower’s account indicated below. The Borrower authorizes the depository institution named below to debit to such account. 
  

			
	DEPOSITORY NAME	  	BRANCH
		
	CITY	  	STATE AND ZIP CODE
		
	TRANSIT/ABA NUMBER	  	ACCOUNT NUMBER

 This authority will remain in full force and effect so long as any amounts are due under the Agreement. 

 

	
	  

	(Borrower)(Please Print)

  

			
	By:	 	  

		
	Date:	 	  

 [Signature Page to ACH Debit Authorization Agreement] 

 Schedule 1 
 Subsidiaries 
 Enphase Energy SAS (organized under the laws of France) 

Enphase Energy SRL (organized under the laws of Italy) 
 Enphase Energy New Zealand Limited (organized under the laws of New Zealand) 

 Schedule 1A 
 Permitted Indebtedness 
 Indebtedness to Atel Ventures, Inc. in an aggregate principal
amount outstanding on the Closing Date of approximately $120,000 pursuant to that certain Master Loan and Security Agreement No. ENPHX, dated as of December 15, 2008, and any and all Loan Schedules, exhibits, riders and supplements thereto, and
which is secured by the equipment financed with the proceeds thereof. 
 Indebtedness under the AEL Financial Lease Agreement, dated as of
September 2008, in an aggregate principal amount outstanding on the Closing Date of approximately $21,000, and which is secured by the equipment financed with the proceeds thereof. 
 Indebtedness under two leases with GE Capital, dated as of August 2008, totaling approximately $3,000 on the Closing Date. 
 Indebtedness under three leases with Wells Fargo, dated between April 2008 and February 2010, totaling approximately $5,000 on the Closing Date. 
 Indebtedness not to exceed $25.0 million (none of which is outstanding on the Closing Date) under that certain Amended and Restated Loan and Security Agreement, dated as of March 24, 2011, by and
among Enphase Energy, Inc., Bridge Bank, National Association, and Comerica Bank, and which is secured by a blanket lien on Borrower’s assets. 
 Indebtedness not to exceed $12.0 million (approximately $8.4 million of which is outstanding as of the Closing Date) under that certain Amended and Restated Venture Loan and Security Agreement, dated as
of March 25, 2011, by and between Horizon Technology Finance Corporation, Horizon Credit LLC and Enphase Energy, Inc., and which is secured by a blanket lien on Borrower’s assets. 
 Indebtedness to Oracle Credit Corporation and its affiliates in an aggregate principal amount of approximately $275,000 outstanding as of the Closing Date under that certain Term License Lease Schedule
No. 42667, dated February 28, 2011, Payment Plan Agreement, dated February 28, 2011, and any other related documents entered into in connection with the foregoing. 

 Schedule 1B 
 Permitted Investments 
 Investments consisting of capital stock of the subsidiaries
disclosed on Schedule 1 and Schedule 5.14. 

 Schedule 5.3 
 Consents 
 The Consent Letters (as defined in Section 1.1) . 

 Schedule 5.5 
 Actions, Suits or Proceedings 
 None 

 Schedule 5.8 
 Tax Matters 
 None. 

 Schedule 5.9 
 Intellectual Property Claims 
 None. 

 Schedule 5.10 
 Intellectual Property 
 None. 

 Schedule 5.14 
 Capitalization 

			
	Enphase Energy, Inc.	  	See Attached.
		
	Enphase Energy SAS	  	Authorized: 3,500 shares of Common
		  	Issued and Outstanding: 3,500 shares of Common
		
	Enphase Energy SRL	  	Authorized: 35,000 Euro Nominal Shares
		  	Issued and Outstanding: 35,000 Euro Nominal Shares
	
	Enphase Energy New Zealand Limited
		  	Authorized: 100 shares of Common
		  	Issued and Outstanding: 100 shares of Common

 Enphase Energy, Inc. 

Fully Diluted Capitalization Table - Summary 
 As of 05/18/2011 
  

									
	 	  	CSE
Shares*	 	 	Total
Fully
Diluted
Shares	 
	 COMMON STOCK (Authorized: 308,000,000)
	  				 			
	 Issued and Outstanding
	  	 	8,344,784	  	 	 	8,344,784	  
			
	 PREFERRED STOCK (Authorized: 213,912,542)
	  				 			
	 SERIES A Preferred Stock (Authorized: 1,875,000)
	  	 	2,298,753	  	 			
	 SERIES B Preferred Stock (Authorized: 9,672,442)
	  	 	18,358,296	  	 			
	 SERIES C Preferred Stock (Authorized: 12,065,100)
	  	 	29,353,159	  	 			
	 SERIES D Preferred Stock (Authorized: 115,300,000)
	  	 	111,071,231	  	 			
	 SERIES E Preferred Stock (Authorized: 75,000,000)
	  	 	67,471,300	  	 	 	228,552,739	  
		  	  
	  
	 	 			
			
	 WARRANTS
	  				 			
	 COMMON Stock
	  	 	100,000	  	 			
	 SERIES C Stock
	  	 	251,400	  	 			
	 SERIES E Stock
	  	 	1,470,588	  	 	 	1,821,988	  
		  	  
	  
	 	 			
			
	 2006 Plan (Reserved: 68,400,797)
	  				 			
	 Shares Issuable Under Plan:
	  				 			
	 Options and SPRs Issued and Outstanding
	  	 	56,551,700	  	 			
	 Options and SPRs Committed for Issuance
	  	 	0	  	 			
	 Shares Remaining for Issuance Under Plan
	  	 	8,794,313	  	 	 	65,346,013	  
		  	  
	  
	 	 			
			
	 Reserved in Plan
	  	 	68,400,797	  	 			
	 less: Options Exercised
	  	 	(2,102,784	) 	 			
	 less: SPRs Exercised
	  	 	(952,000	) 	 			
		  	  
	  
	 	 			
		  	 	65,346,013	  	 			
		  	  
	  
	 	 			
	 NON PLAN SPRS
	  				 			
	 Common Stock
	  	 	0	  	 	 	0	  
		  				 	  
	  
	 
			
	 Total shares issued & outstanding, including shares committed for issuance and employee reserves, assuming conversion
of all convertible securities and exercise of all outstanding options
	  				 	 	304,065,524	  
		  				 	  
	  
	 

 Footnote(s): 
  

			
	CSE Shares*	  	Common Stock Equivalent (CSE) shares reflects the Common Stock issuable for the security type (option, stock, warrant, CPN) after the appropriate conversion ratio is applied to
each individual outstanding security for the applicable security type, using standard rounding.

 

 

  
 Page 1 of 2

 Enphase Energy, Inc. 

Fully Diluted Capitalization Table - Summary 
 As of 05/18/2011 
 Fully-Diluted Ownership 

 

									
	 	  	Number of Shares	 	  	Percent (%)	 
	 Common Stock
	  	 	8,344,784	  	  	 	2.74	  
	 SERIES A Preferred Stock
	  	 	2,298,753	  	  	 	0.76	  
	 SERIES B Preferred Stock
	  	 	18,358,296	  	  	 	6.04	  
	 SERIES C Preferred Stock
	  	 	29,353,159	  	  	 	9.65	  
	 SERIES D Preferred Stock
	  	 	111,071,231	  	  	 	36.53	  
	 SERIES E Preferred Stock
	  	 	67,471,300	  	  	 	22.19	  
	 COMMON Warrants
	  	 	100,000	  	  	 	0.03	  
	 SERIES C Warrants
	  	 	251,400	  	  	 	0.08	  
	 SERIES E Warrants
	  	 	1,470,588	  	  	 	0.48	  
	 Options and SPRs issued and outstanding under plan - 2006 Plan
	  	 	56,551,700	  	  	 	18.60	  
	 Committed for Issuance - 2006 Plan
	  	 	0	  	  	 	0.00	  
	 Unissued Reserve - 2006 Plan
	  	 	8,794,313	  	  	 	2.89	  
	 Non Plan Common SPR
	  	 	0	  	  	 	0.00	  
		  	  
	  
	 	  	  
	  
	 
	 TOTAL
	  	 	304,065,524	  	  	 	100.00	  

 

 

  
 Page 2 of 2

 EXECUTION VERSION 

AMENDMENT NO. 1 
 TO 
 LOAN AND SECURITY AGREEMENT 

THIS AMENDMENT NO. 1 TO LOAN AND
SECURITY AGREEMENT (this “Amendment”) is entered into this 20th day of June, 2011 by and between ENPHASE ENERGY,
INC., a Delaware corporation (“Parent”), and each of Parent’s subsidiaries joined thereto (the “Joined Subsidiaries”; the Joined
Subsidiaries and Parent are hereinafter referred to collectively as the “Borrower”), and HERCULES TECHNOLOGY GROWTH CAPITAL,
INC., a Maryland corporation (the “Lender”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below). 

RECITALS 
 A. The Borrower and the Lender have entered into that certain Loan and Security Agreement dated as of June 13, 2011 (as amended, restated, supplemented or otherwise modified from time to
time, the “Loan Agreement”), pursuant to which the Lender has agreed to extend and make available to the Borrower certain extensions of credit. 
 B. The Borrower and the Lender have agreed to amend the Loan Agreement upon the terms and conditions more fully set forth herein. 

AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows: 
 1. AMENDMENTS. 
 1.1 Section 1.1 (Definitions).
Section 1.1 of the Loan Agreement is hereby amended in the following respects: 
 (a) Section 1.1 of the
Loan Agreement is hereby amended by deleting the definition of “Investors’ Subordination Agreement” in its entirety therefrom. 
 (b) Section 1.1 of the Loan Agreement is hereby amended by inserting the following new definition therein in alphabetical order: 

“Convertible Lenders” has the meaning given to it in the definition of “Investors’ Indebtedness”.

 “First Amendment Effective Date” means the “Effective Date” as defined in Amendment No. 1
to Loan and Security Agreement, dated as of June 20, 2011, by and between Borrower and Lender. 

“KPCB” has the meaning given to it in the definition of “Investors’ Indebtedness”. 

 “Subordinated Loan Agreement” has the meaning given to it in the
definition of “Investors’ Indebtedness”. 
 (c)     Section 1.1 of the Loan
Agreement is hereby amended by amending and restating the following definitions in their entirety as follows: 

“Investors’ Indebtedness” means the Indebtedness of Borrower in favor of the Investors in an original
aggregate principal amount not to exceed $50,000,000 pursuant to that certain Subordinated Convertible Loan Facility and Security Agreement, dated as of June 14, 2011 (together, with the other ancillary and collateral security documents entered into
by Borrower in connection therewith, the “Subordinated Loan Agreement”), by and among Borrower, the lenders from time to time parties thereto or other Persons who from time to time may become parties thereto (collectively, the
“Convertible Lenders”), and KPCB Holdings, Inc., as nominee, in its capacity as agent for itself as a Convertible Lender and the other Convertible Lenders (in such capacity, “KPCB”), as the same may be amended, restated,
supplemented or otherwise modified from time to time; provided, that, prior to the indefeasible payment in full of all Secured Obligations (in an aggregate principal amount not to exceed $5,000,000), any amendment, restatement, refinancing,
supplement or other modification of the Subordinated Loan Agreement that (i) shortens the fixed date component of the Maturity Date definition in the Subordinated Loan Agreement from three (3) years after the effective date of the Subordinated Loan
Agreement, or (ii) creates or provides for the scheduling of regular cash payments of principal or interest or requires any prepayment of the obligations of Borrower under the Subordinated Loan Agreement, other than payment in full upon the Maturity
Date (as such term is defined in the Subordinated Loan Agreement) (for the avoidance of doubt, the foregoing shall not affect KPCB’s ability to effect remedies, in each case, as provided for in the Subordinated Loan Agreement as in effect on
the First Amendment Effective Date), in each case, shall be approved in advance in writing by Lender in its sole discretion. 
 “Maturity Date” means June 1, 2014. 
 “Release
Letters” means letters from each of the Incumbent Lenders and KPCB, in its capacity as agent for the Convertible Lenders, pursuant to which each of the Incumbent Lenders and KPCB, on behalf of the Convertible Lenders, agrees to release any
interest in the Financed Equipment, in each case, in form and substance acceptable to Lender. 
 1.2    
Section 2.1 (Loan). Section 2.1(d) of the Loan Agreement is hereby amended by replacing the number “25” with the number “24” in the fourth line of such section. 

1.3     Section 7.5 (Indebtedness). Section 7.5 of the Loan Agreement is hereby amended by replacing
the phrase “subject to the Investors Subordination Agreement” with the following phrase: “so long as any such prepayment of the Investors’ Indebtedness is expressly required by the terms and provisions of the Subordinated Loan
Agreement as in effect on the First Amendment Effective Date or as such agreement is amended in accordance with this Agreement”. 

  
 2 

 1.4     Exhibit B (Form of Secured Term Promissory Note). Exhibit
B attached to the Loan Agreement is hereby amended by replacing the date of “July 1, 2014”, which appears immediately following the phrase “Maturity Date:” in the upper right-hand corner of such Exhibit, with the date of
“June 1, 2014”. 
 2.     BORROWER’S
REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants that: 

(a) immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are
true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of Default
has occurred and is continuing; 
 (b) The Borrower has the corporate power and authority to execute and deliver this
Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 (c) the certificate
or articles of incorporation, bylaws and other organizational documents of the Borrower delivered to the Lender on the Closing Date remain true, accurate and complete and have not been amended, restated, supplemented or otherwise modified and
continue to be in full force and effect; 
 (d) the execution and delivery by the Borrower of this Amendment and the
performance by the Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of the Borrower; 

(e) this Amendment has been duly executed and delivered by the Borrower and is the binding obligation of the Borrower, enforceable
against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting
creditors’ rights generally; and 
 (f) as of the date hereof, the Borrower has no defenses against the obligations
to pay any amounts under the Obligations. The Borrower acknowledges that the Lender has acted in good faith and has conducted in a commercially reasonable manner its relationships with the Borrower in connection with this Amendment and in connection
with the Loan Documents. 
 The Borrower understands and acknowledges that the Lender is entering into this Amendment in
reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate. 
 3.     LIMITATION. The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of
any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which the Lender may now have or may have in the future under or in connection with the Loan Agreement
or any instrument or agreement referred to 

  
 3 

 
therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of
any of the provisions thereof. Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect. 

4. EFFECTIVENESS. This Amendment shall become effective upon the satisfaction of all of the
following conditions precedent in form and substance satisfactory to the Lender (the “Effective Date”): 

4.1 Amendment. The Lender shall have received duly executed counterparts of this Amendment signed by the parties hereto.

 4.2 Release Letter. The Lender shall have received a duly executed Release Letter from KPCB signed by the parties
thereto. 
 5. EXPENSES. The Borrower agrees to pay the Lender’s costs
and expenses (including the fees and expenses of the Lender’s counsel, advisors and consultants) accrued and incurred in connection with the transactions contemplated by this Amendment in an amount not to exceed $7,500 without Borrower’s
consent, and all other Lender expenses (including the fees and expenses of Lender’s counsel, advisors and consultants) payable in accordance with Section 11.11 of the Loan Agreement. 

6. COUNTERPARTS. This Amendment may be signed originally or by facsimile or other means of
electronic transmission in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument. All counterparts shall be deemed an
original of this Amendment. 
 7. INTEGRATION. This Amendment and any documents
executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect
thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by the Lender with respect to
the Borrower shall remain in full force and effect. 
 8. GOVERNING LAW;
VENUE. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. The Borrower and the Lender each submit to the exclusive jurisdiction of the State and Federal
courts in Santa Clara County, California. 
 [Remainder of page intentionally left blank; signature page follows] 

  
 4 

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

 

			
	ENPHASE ENERGY, INC.
		
	By:	 	/s/ Sanjeev Kumar
	Name:	 	Sanjeev Kumar
	Title:	 	CFO

 LENDER: 
  

			
	 HERCULES TECHNOLOGY GROWTH
 CAPITAL, INC.

		
	By:	 	 
	Name:	 	K. Nicholas Martitsch
	Title:	 	Associate General Counsel

 [Signature Page to Amendment No. 1 to Loan and Security Agreement] 

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

 

			
	ENPHASE ENERGY, INC.
		
	By:	 	 
	Name:	 	  

	Title:	 	  

 LENDER: 
  

			
	 HERCULES TECHNOLOGY GROWTH
 CAPITAL, INC.

		
	By:	 	/s/ K. Nicholas Martitsch
	Name:	 	K. Nicholas Martitsch
	Title:	 	Associate General Counsel

 [Signature Page to Amendment No. 1 to Loan and Security Agreement]Cooperation Agreement

 Exhibit 10.16 
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
ACT OF 1933, AS AMENDED. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Cooperation
Agreement 
 “AC cabling system for solar micro-inverter” 

between 

Phoenix Contact GmbH & Co. KG 
 Flachsmarktstraße 8 
 32825 Blomberg 

Germany 
 as well
as 
 Phoenix Contact USA, Inc. 
 586 Fulling Mill Road 
 Middletown, PA 17057 

HARRISBUG, PA. 17111-0100 
 USA 
 -hereinafter “Phoenix Contact”- 

and 
 Enphase
Energy Inc. 
 201 1st Street Suite 11 
 Petaluma, CA 94952 USA 
 -hereinafter “ENPHASE”- 

-hereinafter singly or jointly referred to as “CONTRACTUAL PARTIES”- 

on 
 the
development of an AC cabling system for solar micro-inverter 
 as well as the tools needed for the manufacture of products and
the supply of the developed 
 products 

 Content 
  

					
	 Article 1 - Preamble
	  	 	2	  
	 Article 2 - Definitions
	  	 	2	  
	 Article 3 - Cooperation between the CONTRACTUAL PARTIES
	  	 	3	  
	 Article 4 - Development costs
	  	 	5	  
	 Article 5 - Changes
	  	 	5	  
	 Article 6 - Rights to RESULT
	  	 	6	  
	 Article 7 - Tools
	  	 	8	  
	 Article 8 - Delivery/Purchase quantities, Pricing and Delivery Schedule
	  	 	8	  
	 Article 9 - Secrecy
	  	 	9	  
	 Article 10 - Promotion
	  	 	10	  
	 Article 11 - Quality defects
	  	 	10	  
	 Article 12 - Material Breach
	  	 	11	  
	 Article 13 - Deficiencies in title
	  	 	12	  
	 Article 14 - Limitation of Liability
	  	 	13	  
	 Article 15 - Force Majeure
	  	 	13	  
	 Article 16 - Coming into effect, duration, other
	  	 	14	  
	 Article 17 - Applicable Law/Place of Jurisdiction
	  	 	15	  

 Article 1 - Preamble 
 Phoenix Contact is a company with worldwide operations in the field of electrical connection technology, automation, surge voltage protection and electronic interface systems. ENPHASE is a company
specializing in design, manufacturing, and distribution of solar micro-inverter and associated products. 
 The CONTRACTUAL
PARTIES agree to work together to develop and produce unique connectors and cable assemblies to create an AC cabling system for use by ENPHASE for its solar micro-inverter products. In addition the CONTRACTUAL PARTIES agree that ENPHASE shall be
generally free to appoint any third parties as supplier for AC cabling systems for use in solar micro-inverter products in terms of a second source supply chain. 
 Article 2 - Definitions 
  

	2.1	“SUBJECT MATTER OF THE AGREEMENT” and/or any activities and development work to be realized by Phoenix Contact in connection with its creation to fulfill this
Agreement are specified and/or defined in detail in Annex 1 attached to this Agreement as integral part of the Agreement and mutually agreed between the CONTRACTUAL PARTIES (based on concepts and specifications provided by ENPHASE); the
specification shall include details regarding the prototypes and detailed test requirements. These requirements may be added by a detailed specification of the pre serial products. 

 

	2.2	“RESULT” are the SUBJECT MATTER OF THE AGREEMENT as well as any working and development results, ideas, know-how, findings and experiences, protectable and
non-protectable, in any form as well as all corresponding documents that are created during the realization of the development work on the SUBJECT MATTER OF THE AGREEMENT. 

 

	2.3	“INFORMATION” is findings and experiences, protectable and non-protectable, in the field of the SUBJECT MATTER OF THE AGREEMENT, which existed at ENPHASE or
at Phoenix Contact before the coming into effect of this Agreement or is created outside the realization of the development work on the “SUBJECT MATTER OF THE AGREEMENT”. 

 

	2.4	“CONTRACTUAL PRODUCTS” are the products that are delivered by Phoenix Contact to ENPHASE in series after the acceptance of the SUBJECT MATTER OF THE AGREEMENT
by ENPHASE. 

  
 2 

	2.5	“PREPRODUCTION PROTOTYPES” means parts which will only be used for testing by Phoenix, by ENPHASE, or by independent approval laboratories. The details of the
use of the prototypes and what kind of prototypes Phoenix Contact shall deliver to ENPHASE are set forth in Annex 7. 

 Article
3 - Cooperation between the CONTRACTUAL PARTIES 
  

	3.1	Phoenix Contact shall perform the development work on the SUBJECT MATTER OF THE AGREEMENT in accordance with the time schedule listed in Annex 2 as well as by observing
any possible roadmap also laid down there. 

 Should any deviations from the time schedule and/or the roadmap
become apparent, Phoenix Contact shall notify ENPHASE promptly by Email or other written communication. 
 The development work
to be performed on the SUBJECT MATTER OF THE AGREEMENT may be assigned to third parties by Phoenix Contact. Phoenix Contact shall bind the third parties to secrecy to an extent that corresponds to the requirements of Article 7. Phoenix Contact shall
remain fully responsible to ENPHASE under the terms set forth in this Agreement. Phoenix Contact shall be fully responsible to ENPHASE for any acts of such third parties in violation of the terms of this Agreement. 

 

	3.2	ENPHASE shall provide Phoenix Contact with INFORMATION, which from ENPHASE’s point of view is necessary for the development of the SUBJECT MATTER OF THE AGREEMENT
and not accessible to Phoenix Contact in any other way, for the duration and the purposes of the development work. The provision of the aforementioned INFORMATION shall be free of charge. Phoenix Contact shall notify ENPHASE in time and in writing
if it considers the provided INFORMATION for the performance of the development work on SUBJECT MATTER OF THE AGREEMENT as not sufficient and when which INFORMATION is needed at Phoenix Contact. 

 

	3.3	ENPHASE will be entitled to receive all product design information except details of the internal design which is not related to the connector interface in combination
with the latching mechanism of the CONTRACTUAL PRODUCT/RESULT and the manufacturing methods used to produce the CONTRACTUAL PRODUCT/RESULT except as provided in section 3.3.4 below. This product design information according to sentence 1 of 3.3
shall specifically include: 

  

	 	3.3.1	A customer drawing that describes the overall features and dimensions of the cable assemblies to be purchased by ENPHASE. 

  
 3 

	 	3.3.2	3D models of the external features and dimensions (the envelope) of the trunk cable splice box and of the drop cable connector, in such detail that ENPHASE will be able
to import these models into their own design software to do assembly designs and analysis. 

  

	 	3.3.3	2D drawings and 3D models of both connector interfaces, including the contact in combination with the latching mechanism, with basic dimensions and tolerances in
sufficient detail that ENPHASE can analyze the connector design for reliability and such that ENPHASE could have another supplier produce connectors that interface with the Phoenix supplied products. 

 

	 	3.3.4	A list of materials used in the construction of the CONTRACTUAL PRODUCTS in such detail, and for the sole purposes of enabling ENPHASE to determine the reliability of
the CONTRACTUAL PRODUCTS and to obtain certification of the CONTRACTUAL PRODUCTS from regulatory and approval agencies. ENPHASE shall share all knowledge and experience on materials with Phoenix Contact. 

 

	3.4	Phoenix Contact shall provide all information as required by regulatory agencies e.g. CSA. 

 

	3.5	The requirements on the SUBJECT MATTER OF THE AGREEMENT can only be modified by mutual agreement of the CONTRACTUAL PARTIES. Any resulting changes in deadlines,
milestones and/or remuneration shall also be mutually agreed. Agreements pursuant to this article 3.5 shall be in writing. 

  

	3.6	Upon request, Phoenix Contact shall inform ENPHASE of the status of the development work on the SUBJECT MATTER OF THE AGREEMENT and enable an exchange of information
with its operators of the SUBJECT MATTER OF THE AGREEMENT at a place to be arranged. 

 Phoenix Contact shall
undertake to explain the RESULT verbally – upon request of ENPHASE also once at ENPHASE site. 
 When creating the SUBJECT
MATTER OF THE AGREEMENT, Phoenix Contact shall apply state of the art science and technology. ENPHASE shall not be entitled to issue instructions to the employees of Phoenix Contact. 

  
 4 

	3.7	ENPHASE shall execute the acceptance of the RESULT after presentation of the RESULTS by Phoenix Contact in accordance with the Handover and Acceptance Protocol enclosed
as Annex 3.  

  

	3.8	The CONTRACTUAL PARTIES shall appoint the following persons that will be the contact person for the other CONTRACTUAL PARTY during the performance of the development
work on the SUBJECT MATTER OF THE AGREEMENT: 

  

			
	for Phoenix Contact:	 	 Ansgar Engel
 Phoenix
Contact GmbH & Co. KG
 Flachsmarktstr. 8
 32825 Blomberg
 Germany

		
	for ENPHASE:	 	 Jack Powell
 Enphase
Energy, Inc.
 201
1st Street, Suite 300

Petaluma, California 94952

USA

 If the contact person of either CONTRACTUAL PARTY changes, it shall inform the other CONTRACTUAL PARTY in
writing. 
 All queries, reports, etc. shall be directed by one CONTRACTUAL PARTY to the other through the respective contact
persons. 
 Article 4 - Development costs 
 For performing the development work on the SUBJECT MATTER OF THE AGREEMENT, Phoenix Contact shall pay for all design, tooling and production equipment expenses, except as such expenses may be recovered by
Phoenix Contact through the remuneration provision in section 8.3. 
 Article 5 - Changes 

 

	5.1	If ENPHASE or Phoenix Contact requires changes to the CONTRACTUAL PRODUCT or the SUBJECT MATTER OF THE AGREEMENT including costs, prices and time schedule, these
changes shall be mutually agreed between the CONTRACTUAL PARTIES in writing. 

  
 5 

	5.2	If Phoenix Contact believes that requirements of ENPHASE or other circumstances, for which ENPHASE is responsible, lead to increased work and have effects on the agreed
deadlines and/or the roadmap and/or the remuneration, Phoenix Contact shall notify ENPHASE. If Phoenix Contact requires such an adjustment, the CONTRACTUAL PARTIES shall then agree on adequate adjustment of the remuneration and/or an adjustment of
the deadlines and/or the roadmap in writing, if any. 

 Article 6 - Rights to RESULT 

 

	6.1	For knowledge including property rights and copyrights that already were available at ENPHASE before the beginning of the development, and that are needed for the
performance of the development, ENPHASE shall grant Phoenix Contact a non exclusive, irrevocable, cost-free right of use. This right of use shall only be for the design and manufacturing of CONTRACTUAL PRODUCTS for ENPHASE. 

 

	6.2	Upon its creation, namely during the development or planning in the respective processing stage, the non-protectable inventions or ideas that are contained in the
RESULT in its embodied form and the corresponding documents shall become the property of Phoenix Contact with the right to any worldwide use and exploitation. If the RESULT is embodied in drawings, models, reports, data carriers, samples and any
other objects, these shall pass into the sole and unlimited ownership of Phoenix Contact upon their creation, namely in the respective processing state. The foregoing shall apply for all of the non-protectable inventions or ideas except the
non-protectable inventions or ideas that are contained in the design connector interface in combination with the latching mechanism according to Annex 8 and the trunk and drop wiring design according to Annex 8. The CONTRACTUAL PARTIES agree that
the overall wiring concept according to Annex 8 shall be available in any case for both CONTRACTUAL PARTIES without any limitations. 

 Phoenix Contact may not make the design connector interface according to Annex 8 available to any customer other than ENPHASE. 
 For this aforementioned non-protectable inventions or ideas (design connector interface in combination with the latching mechanism according to Annex 8 and the trunk and drop wiring design according to
Annex 8) ENPHASE shall have all ownership rights, including the right to any worldwide use and exploitation. If this is embodied in drawings, models, reports, data carriers, samples and any other objects, these shall pass into the sole and unlimited
ownership of ENPHASE upon their creation, namely in the respective processing state. 

  
 6 

	6.3	If the RESULT is protected by copyrights or any other non-transferable property rights of ENPHASE or third party the real author of ENPHASE or the third party shall
irrevocably grant Phoenix Contact the exclusive right upon creation of the RESULT, solely to be assigned by Phoenix Contact and unlimited in time, context and location, to use and exploit the RESULT itself in unchanged or changed form in all known
kinds of use and without any territorial restrictions. This right shall especially include the rights of use to copy the RESULT itself. This right shall only be for the design, manufacturing and selling of CONTRACTUAL PRODUCTS to ENPHASE.

  

	6.4	As far as protectable inventions or ideas are contained in the RESULT, Phoenix Contact shall be entitled to apply for property rights at its own discretion and in its
name - by mentioning the inventor of ENPHASE in accordance with the respectively effective statutory provisions - in any countries, to maintain them or to abandon them at any time - except the protectable inventions or ideas that are contained in
the design connector interface in combination with the latching mechanism according to Annex 8 and the trunk and drop wiring design according to Annex 8 and the overall wiring concept. For this aforementioned protectable inventions or ideas (design
connector interface and the trunk and drop wiring design according to Annex 8 and the overall wiring concept according to Annex 8) that are contained in the RESULT ENPHASE shall be entitled to apply for property rights at its own discretion and in
its name - by mentioning the inventor of Phoenix Contact in accordance with the respectively effective statutory provisions - in any countries, to maintain them or to abandon them at any time. The CONTRACTUAL PARTIES shall promptly inform each other
of an invention created in connection with the realization of the development work on the SUBJECT MATTER OF THE AGREEMENT. As far as one of the CONTRACTUAL PARTIES needs explanations, documents or any other support from the other party for the
application, processing and protection of property rights due to such inventions, the respective CONTRACTUAL PARTY shall promptly provide them and/or grant them to the other party upon request. Each CONTRACTUAL PARTY shall bear its own costs and
expenses in this case. 

  

	6.5	As far as Phoenix Contact and/or a partner of Phoenix Contact necessarily makes use of INFORMATION or protectable or non-protectable inventions or ideas of ENPHASE when
using and exploiting (including manufacture and sale) the RESULT, ENPHASE shall herewith grant Phoenix Contact a cost-free right of use, unlimited in time and location, to the corresponding INFORMATION to the extent necessary for the use of the
RESULT as well as for the manufacture and delivery of CONTRACTUAL PRODUCTS for ENPHASE. Part of the INFORMATION are in particular comprehensive rights of use to already generated property rights of third parties, which are needed by Phoenix Contact
within this project and which have to be granted by ENPHASE. This right of use contains the right to grant sublicenses for the INFORMATION. This right of use shall only be for the design, manufacturing and selling of CONTRACTUAL PRODUCTS for
ENPHASE. 

  
 7 

	6.6	The CONTRACTUAL PARTIES shall duly take care that it acquires the rights to the inventions or ideas of its employees contained in the RESULT as far as necessary
pursuant to the provisions that apply to respective CONTRACTUAL PARTY, and to assign them to the respective CONTRACTUAL PARTY. 

  

	6.7	Furthermore, the respective CONTRACTUAL PARTY shall ensure through corresponding contractual provisions with its employees that the rights to the RESULT in accordance
with Article 6 exclusively and unlimited in location, context and time and without any additional costs pertain to the respective CONTRACTUAL PARTY, and that these rights will not be affected by the termination of agreements between the respective
CONTRACTUAL PARTY and its employee. 

  

	6.8	The use of any Intellectual Property (including but not limited to Patents or design patents) of Phoenix Contact to create the RESULT or to produce the CONTRACTUAL
PRODUCTS shall not constitute any kind of license or right of use to ENPHASE except to the extent necessary for ENPHASE to make use of the CONTRACTUAL PRODUCTS. 

 Article 7 - Tools 
  

	7.1	ENPHASE and Phoenix Contact agree that Phoenix Contact directly retains sole ownership of the manufactured tools and production equipment upon their creation, namely in
the respective processing state. 

  

	7.2	Phoenix Contact agrees that it shall never use ENPHASE tooling or specialized equipment to manufacture products similar to the CONTRACTUAL PRODUCTS for any other
customer. Any usage of ENPHASE tooling or specialized equipment by Phoenix Contact to manufacture any products for any customer other than ENPHASE shall constitute a material breach of this Agreement and will entitle ENPHASE to terminate this
Agreement without the payment of any remuneration to Phoenix Contact and without incurring any other liability. 

 Article 8 -
Delivery/Purchase quantities, Pricing and Delivery Schedule 
  

	8.1	After acceptance of the development, Phoenix Contact shall provide ENPHASE with the CONTRACTUAL PRODUCTS. 

 

	8.2	The series delivery of CONTRACTUAL PRODUCTS is effected pursuant to the provisions of this Agreement according to the provisions for RESULTS and SUBJECT MATTERS OF THE
AGREEMENT (especially Article 11, 12, 13). The CONTRACTUAL PARTIES agree that no General Business Terms will be applied. 

  
 8 

	8.3	The prices for the CONTRACTUAL PRODUCTS as well as the delivery conditions are defined in Annex 6. Price changes shall be according to the provisions in Annex
6. The CONTRACTUAL PARTIES agree on a minimum purchase quantity of [***] connectors and [***] splice boxes during 5 years after acceptance of the RESULT. If the minimum purchase quantity is not purchased by ENPHASE within such
time, then Phoenix Contact shall be entitled to claim for the following remuneration not purchased: 

 [***]
(US $[***]) for [*] to [***] pieces (connector and splice box) per part. 
 [***] (US $[***])
for [***] to [***] pieces (connector and splice box) per part. 
 ENPHASE shall inform Phoenix Contact promptly of
its intent to cease purchasing under this Agreement. In such case, ENPHASE shall additionally purchase finished or semi finished CONTRACTUAL PRODUCTS and raw material to use up any raw material purchased for ENPHASE CONTRACTUAL PRODUCTS. This shall
not exceed three (3) months of forecasted quantities, if not otherwise agreed between the CONTRACTUAL PARTIES. 
  

	8.4	The CONTRACTUAL PARTIES agree herewith on a specific price for PREPRODUCTION PROTOTYPES including the costs of prototype tools as agreed by the parties as stipulated in
Annex 7.  

  

	8.5	The CONTRACTUAL PARTIES have agreed on a schedule that includes dates for specification definition, design, design approval, prototype design, prototype construction,
production tooling, and approval for production and which is attached as Annex 2.  

  

	8.6	Phoenix Contact agrees that the prices which Phoenix Contact charges ENPHASE shall always be no greater than those which Phoenix Contact charges any other customer for
similar products. 

 Article 9 - Secrecy 
 The non-disclosure agreement (Annex 5) between the CONTRACTUAL PARTIES effective as of 16 April 2010 is an integral part of this Agreement. Notwithstanding the term set forth in the
non-disclosure agreement, the CONTRACTUAL PARTIES agree that it shall remain valid until the end of five (5) years after termination or expiration of this Agreement. Secrecy obligation will be applicable in particular to INFORMATION and product
design information. 
  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

  
 9 

 Article 10 - Promotion 
 With the prior written approval of ENPHASE, Phoenix Contact shall be entitled to advertise the CONTRACTUAL PRODUCT as customer-specific product in all areas after the series release (flyer, press release,
catalogs, brochures, exhibition panels, etc.) as well as exhibit the CONTRACTUAL PRODUCT at trade fairs, amongst others. In addition, with the prior written approval of ENPHASE, Phoenix Contact shall be entitled to promote this cooperation.

 Article 11 - Quality defects 
  

	11.1	Phoenix Contact warrants that the CONTRACTUAL PRODUCTS shall be free of any quality defects in design, materials and workmanship for a period of [***] months.
The warranty period shall begin with the acceptance and/or, in case of the CONTRACTUAL PRODUCTS, with the transfer of risk. Phoenix Contact shall not be held liable regarding the PREPRODUCTION PROTOTYPES and pre serial products for Quality defects.
This limitation of liability shall not apply, if Phoenix Contact acts with intent and for especially agreed quality guarantees as well as for damages to the body or material damages to privately used objects in accordance with the Product Liability
Act. 

  

	11.2	If quality defects appear during the period of limitation, Phoenix Contact shall at its discretion either remedy them or re-deliver the RESULT free of defects
(subsequent performance). If in this connection quality defects are again detected, ENPHASE shall be entitled to 

first, demand another remedy of defects or re-delivery from Phoenix Contact at its discretion and only after a renewed unsuccessful remedy
of defects or re-delivery 
  

	 	(i)	withdraw from the Agreement or 

  

	 	(ii)	reasonably reduce the remuneration agreed in accordance with Article 4 or 

  

	 	(iii)	effect the remedy of defects itself or have it effected or 

  

	 	(iv)	demand compensation for damages. 

Any further or other claims or rights of ENPHASE due to quality defects do not exist. 

 

	11.3	The CONTRACTUAL PARTIES agree on a Quality assurance Agreement as set forth in Annex 4.  

 

	11.4	Epidemic Failure: In the event that CONTRACTUAL PRODUCTS under warranty have the same or similar functional defect during a time period of three (3) months and the
number of defected CONTRACTUAL PRODUCTS exceed [***] of the quantity delivered within this time period, this 

  

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS. 

  
 10 

	 	
shall be an “Epidemic Failure” as mentioned in the following. The term “Epidemic Failure” shall exclusively apply to delivered CONTRACTUAL PRODUCTS with a number of pieces of
more than ten thousand (>10.000) during three (3) months. If either CONTRACTUAL PARTY learns of the existence or likely existence of an Epidemic Failure, then such CONTRACTUAL PARTY will inform the other CONTRACTUAL PARTY as soon as
possible. The CONTRACTUAL PARTIES shall then work together to jointly devise a containment action plan. As soon thereafter as reasonably possible, the CONTRACTUAL PARTIES will develop a corrective action plan to remedy the Epidemic Failure. Phoenix
Contact shall use its best efforts to implement such remedy as quickly as possible at Phoenix Contact’s own expense, which efforts shall include receiving all shipments of affected Product back (freight collect), repairing or replacing all such
affected Products in accordance with the agreed remedy devised by the Parties, shipping the repaired or replaced Products back to ENPHASE at Phoenix Contact’s expense, and implementing the agreed remedy in all newly manufactured Products.
Phoenix Contact shall be responsible for the reasonable following costs and expenses actually incurred and substantiated as a result of all aspects of implementing the agreed remedy on the affected Products: reasonable costs of the retrieval,
packing, shipping and transportation of such Products, and the re-deployment of repaired or replacement Products (including all labor, consulting, contractor and the like charges, incurred by ENPHASE, only if Phoenix Contact has agreed in writing
that ENPHASE is allowed to do the aforementioned activities). For the avoidance of doubt all damages defined in Article 11.4 shall be direct damages and shall be subject to Article 14.2. 

Article 12 - Material Breach 
 In the event of any material breach of its obligations hereunder committed by either of the CONTRACTUAL PARTIES, the other CONTRACTUAL PARTY shall promptly provide written notice to breaching CONTRACTUAL
PARTY as to the existence and nature of such material breach. If the breaching CONTRACTUAL PARTY fails to remedy the material breach within sixty (60) days following its receipt of such notice from the other CONTRACTUAL PARTY (or fails to
reasonably commence such remedy within sixty (60) days in the event that a complete remediation during such time is not possible), then the other CONTRACTUAL PARTY may immediately terminate this Agreement without any further liability to the
other CONTRACTUAL PARTY, including but not limited to ENPHASE’s obligation to purchase the minimum purchase quantities as noted herein, in the event of a material breach by Phoenix Contact. 

  
 11 

 Article 13 - Deficiencies in title 

Phoenix Contact warrants that the RESULT developed by it as well as the CONTRACTUAL PRODUCTS are free of any rights of third parties and
that the use of the CONTRACTUAL PRODUCTS as well as the RESULT and/or the information of Phoenix Contact does not infringe rights of third parties, especially property rights. Phoenix Contact shall, at its own expense, defend, indemnify, and hold
ENPHASE, its employees and agents harmless against all claims, actions and suits for all reasonable and verifiable losses, costs, expenses, damages (including reasonable and verifiable costs and expenses incurred by ENPHASE subcontractors and
customers of ENPHASE, to the extent that ENPHASE is responsible for such amounts), claims, demands and/or liabilities (including but not limited to reasonable attorneys’ fees) that result from any actual or alleged (i) infringement or
misappropriation of any patent, trademark, copyright, trade secret or other proprietary right by the CONTRACTUAL PRODUCT. For the sake of clarification any costs, expenses and damages that are assessed by a court of law shall be deemed reasonable.
For the sake of clarification Phoenix Contact shall have sole authority to retain counsel and defend against such claim, except in the event that ENPHASE subcontractors or customers require legal representation and Phoenix Contact does not agree to
counsel and defend such parties. If the use of such CONTRACTUAL PRODUCT is (or in Phoenix Contact’s opinion, is reasonably likely to be) enjoined or otherwise encumbered by such claim, then Phoenix Contact shall at its own discretion either:
(a) procure for ENPHASE the right to use such CONTRACTUAL PRODUCT; which allows ENPHASE the right to sell the CONTRACTUAL PRODUCTS to its customers, or, (b) modify such CONTRACTUAL PRODUCT in a manner mutually agreed between the
CONTRACTUAL PARTIES so as to avoid any claim of infringement; or, if neither of the foregoing options (a) or (b) is available after using best efforts, then (c) replace such CONTRACTUAL PRODUCT with an equally suitable replacement
that is acceptable to ENPHASE and that is free of any infringement. If none of the foregoing options (a), (b) or (c) is available after using best efforts, then Phoenix Contact shall refund to ENPHASE all amounts paid by ENPHASE for such
CONTRACTUAL PRODUCTS. The foregoing remedies are nonexclusive. 
 Phoenix Contact will have no obligation to indemnify ENPHASE,
its employees and agents for claims under Sections 11 or 13 to the extent such claims arise due to: (i) ENPHASE’s combination of CONTRACTUAL PRODUCTS or Services with other products; or (ii) the application of the CONTRACTUAL PRODUCT
itself, or (iii) ENPHASE’s unauthorized modification of the CONTRACTUAL PRODUCTS; or (iv) ENPHASE’s usage of the CONTRACTUAL PRODUCT in other than the mutually intended use. 

  
 12 

 Article 14 - Limitation of Liability 

 

	14.1	WITH THE EXCEPTION OF ANY BREACH OF ITS SECRECY OBLIGATIONS HEREUNDER, NEITHER OF THE CONTRACTUAL PARTIES SHALL BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, PUNITIVE,
INDIRECT, OR SPECIAL DAMAGES OR LIABILITIES OF ANY KIND, INCLUDING BUT NOT LIMITED TO BUSINESS INTERRUPTION, LOST PROFITS, LOSS OF USE, LOSS OF OPPORTUNITIES OR LOSS OF DATA, UNDER ANY THEORY OF LIABILITY AND EVEN IF SUCH PARTY WERE ADVISED OF THE
LIKELIHOOD OF SUCH DAMAGES OR LIABILITIES. 

  

	14.2	PHOENIX CONTACT’S LIABILITY FOR DAMAGES RELATING TO INDEMNIFICATION, INCLUDING THAT OF DEFICIENCIES IN TITLE, SHALL BE LIMITED TO THE MAXIMUM AMOUNT OF
[***] UNITED STATES DOLLARS (US $[***]) PER CALENDAR YEAR. 

 PHOENIX CONTACT’S LIABILITY FOR
DAMAGES RELATING TO EPIDEMIC FAILURE SHALL BE LIMITED TO THE MAXIMUM AMOUNT OF [***] UNITED STATES DOLLARS (US $[***]) PER CALENDAR YEAR. 
 FOR ALL OTHER DAMAGES, ESPECIALLY BUT NOT LIMITED TO DAMAGES DUE TO QUALITY DEFECTS AND DELAY, EACH CONTRACTUAL PARTY’S AGGREGATE LIABILITY UNDER THIS AGREEMENT IS LIMITED TO THE AMOUNT OF [***]
UNITED STATES DOLLARS (US $[***]) PER DAMAGE CASE, UP TO A MAXIMUM AMOUNT OF [***] UNITED STATES DOLLARS (US $[***]) PER CALENDAR YEAR. 
 THIS SECTION DOES NOT LIMIT EITHER CONTRACTUAL PARTY’S LIABILITY FOR BODILY INJURY OF A PERSON, DEATH, PHYSICAL DAMAGE TO PROPERTY, INTENTIONAL ACTS AND CLAIMS ACCORDING TO THE PRODUCT LIABILITY ACT.

  

	14.3	AS FAR AS THE LIABILITY OF EACH CONTRACTUAL PARTY IS EXCLUDED OR LIMITED, THE PROVISIONS OF THIS ARTICLE 14 SHALL ALSO APPLY TO EMPLOYEES, WORKERS, REPRESENTATIVES AND
PERFORMING AGENTS OF EACH CONTRACTUAL PARTY. 

 Article 15 - Force Majeure 

 

	15.1	Neither party shall be liable for the non-fulfillment of one of its contractual duties to the extent that the non-fulfillment is based on a circumstance beyond its
control, including but not limited to one of the following reasons: 

  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

  
 13 

 operational disruptions, strikes, lockouts, official regulations, shortages of raw
materials, difficulties in energy supply, mobilization, riots, etc, even if they occur at suppliers of Phoenix Contact or their sub-suppliers. 
  

	15.2	In case of an event of force majeure as described in Section 15.1, the CONTRACTUAL PARTIES are entitled to postpone the delivery and/or the performance by the
duration of the obstruction plus an adequate start-up time, if necessary and they shall resume performance as soon as possible. If the CONTRACTUAL PARTIES are not be able to resume performance during one hundred (100) days after the occurrence
of the force majeure event, either of the CONTRACTUAL PARTIES may terminate the Agreement fully or partly due to the not yet performed part. 

 Article 16 - Coming into effect, duration, other 
  

	16.1	This Agreement shall come into effect upon its signature and be effective for five (5) years. It shall then always be extended for an additional year if it is not
cancelled by written notice provided not less than three (3) months prior to the end of the then current term of the Agreement. 

  

	16.2	This Agreement can be terminated by either CONTRACTUAL PARTY without prior notice by registered letter if a composition proceeding, bankruptcy or insolvency proceeding
is brought by or against the other CONTRACTUAL PARTY, if such proceedings are not dismissed within sixty (60) days. 

  

	16.3	The provisions in Article 6, 7, 8 (except volume commitment), 9, 10, 11, 13 and 14 shall continue to be effective even after the expiration or termination of this
Agreement regardless of the cause of such expiration or termination. 

  

	16.4	Any modifications, supplements, amendments and termination notices in respect to this Agreement shall be in writing. The obligation of a written form can only be
renounced in writing. 

  

	16.5	As far as an explication according to 16.4 has to be made “in writing” or “in written form” pursuant to this Agreement, this explication must be
signed by the person or persons authorized for the due and proper representation of the respective CONTRACTUAL PARTY by his own hand in his own name or by notarially certified initials or notarized and be transmitted to the other CONTRACTUAL PARTY
as original as pdf-scan or fax. Any other explication, that has to be in writing in respect to this Agreement, may be made also in electronic form e.g. Email. 

 

	16.6	If a provision of this Agreement is or becomes invalid, it shall not affect the validity of the other provisions of this Agreement. The provision shall rather be
replaced by a regulation that is permitted by law and comes closest to the original provision in its economic content. 

  
 14 

 Article 17 - Applicable Law/Place of Jurisdiction 

 

	17.1	For this Agreement, the laws of Switzerland shall apply exclusively. The provisions of the Vienna UN Convention for Contracts on International Sale of Goods of
11 April 1980 (UN Purchase Law) are excluded. 

  

	17.2	All disputes arising from or in connection with this Agreement, including all questions regarding its creation, its validity and its termination, shall be finally
decided according to the rules of arbitration of the International Chamber of Commerce (ICC) by three (3) arbitrators pursuant to the mediation and arbitration body of the ICC. Each party shall appoint an arbitrator for confirmation at the
organisation in charge according to the applicable rules (appointment authority). The two appointed arbitrators shall appoint the third arbitrator within 30 days. In the event the two arbitrators cannot agree on a third arbitrator within this
period, the organisation shall appoint him. If several defendants are involved in the legal dispute, the appointment of an arbitrator through the defendants has to be coordinated among the defendants. In the event the defendants cannot agree on such
a common appointment within the period determined by the organisation, the legal proceedings against them shall be separated. The place of jurisdiction shall be Harrisburg, Pennsylvania, USA. Court language shall be English.

  
 15 

					
	Phoenix Contact GmbH & Co. KG	 		 	Phoenix Contact USA, Inc.
			
	Blomberg, 19.10.2010	 		 	Harrisburg, 26-10-2010
			
	 

	 		 	 

	Helmut Friedrich	 		 	Jack Nehlig
	Vice President Head of Business Unit Device Connection Technology	 		 	President
			
	Enphase Energy Inc.	 		 	
			
	Petaluma, 7 Dec 10	 		 	
			
	 

	 		 	
	 Paul Nahi
 CEO
	 		 	

  
 16 

 

 
 Specification (annex 1) 
 Enphase AC Wiring System 
 This technical Specification includes the Enphase ERD Rev 16 and
CSA-Testplan Rev 0.7 
 Change Historie PxC: 
  

											
	 Name
	    	 Historie / Comments
	  	Version	 	  	Date	 
	 Ansgar Engel
	    	Start with ERD Rev12 / CSA Testplan Rev 0.7	  	 	V01	  	  	 	29.07.2010	  
	 Ansgar Engel
	    	New ERD EE Rev 13	  	 	V02	  	  	 	29.07.2010	  
	 Ansgar Engel
	    	New ERD EE Rev 16; Canncel EE cost target in this document.	  	 	V03	  	  	 	19.10.2010	  
	 Ansgar Engel
	    	 Chapter 4.3 Add. Information for primarily shipping cap
 Chapter 4.8 Add. Information for SpliceKit
	  	 	V04	  	  	 	21.10.2010	  

 

 
  

 Table of Contents 

 

							
	 Table of Contents
	  	 	2	  
	 Table of Tables
	  	 	3	  
	 Table of Figures
	  	 	3	  
	 Revision History EE ERD
	  	 	4	  
	 Revision History EE ERD
	  	 	4	  
	 Revision History, Continued
	  	 	5	  
	 1
	  	Premise	  	 	6	  
	 2
	  	References	  	 	6	  
	 2.1
	  	Internal	  	 	6	  
	 2.2
	  	External	  	 	7	  
	 2.2.1
	  	US standards	  	 	7	  
	 2.2.2
	  	EN/IEC Standards	  	 	8	  
	 2.2.3
	  	Other	  	 	8	  
	 3
	  	Application	  	 	9	  
	 3.1
	  	Overview	  	 	9	  
	 3.2
	  	Product line up	  	 	10	  
	 3.2.1
	  	Trunk Cable Assemblies	  	 	10	  
	 3.2.2
	  	Drop Cable Assembly	  	 	13	  
	 4
	  	Specifications	  	 	14	  
	 4.1
	  	Generic Requirements, High Level Goals	  	 	14	  
	 4.1.1
	  	Lifetime expectancy	  	 	14	  
	 4.1.2
	  	Environmental Conditions	  	 	14	  
	 4.1.3
	  	RoHS	  	 	14	  
	 4.1.4
	  	Defect rate	  	 	14	  
	 4.2
	  	Common Requirements for Splice Box and Drop Connectors	  	 	15	  
	 4.2.1
	  	Splice Box, Trunk Welds, and Drop Connector Contact Resistance	  	 	16	  
	 4.3
	  	Splice Box Connector	  	 	17	  
	 4.3.1
	  	Splice Box Marking, Molded into Splice Box, Visible from Outside	  	 	19	  
	 4.3.2
	  	Splice Box Labeling	  	 	20	  
	 4.3.3
	  	Splice Box Sealing Cap Labeling, Molded into Sealing Cap	  	 	20	  
	 4.4
	  	Drop Connector Requirements	  	 	21	  
	 4.4.1
	  	Racking System Compatibility	  	 	22	  
	 4.4.2
	  	Drop Connector Labeling	  	 	23	  
	 4.5
	  	Drop Cable Assembly, Chassis Penetration Overmold	  	 	24	  
	 4.6
	  	Cable requirements	  	 	25	  
	 4.6.1
	  	Trunk and Drop Cable Jacket Labeling	  	 	26	  
	 4.7
	  	Accessories	  	 	27	  
	 4.7.1
	  	Cord Grip	  	 	27	  
	 4.7.2
	  	Trunk Cable Termination	  	 	27	  
	 4.8
	  	Splice Kit	  	 	28	  
	 5
	  	Cost	  	 	29	  
	 6
	  	CSA Test Elements	  	 	29	  
	 6.1
	  	CSA Test Elements and Standards	  	 	29	  
	 6.2
	  	Required Enphase Test Cases	  	 	29	  
	 6.3
	  	Acronyms	  	 	30	  
	 7
	  	Signatures PxC and EE	  	 	31	  

  

					
		 	Page 2 of 31	 	

 

 
  

					
	Table of Tables	  			
		
	 Table 1 - Revision History
	  	 	4	  
	 Table 2 - Revision History, Continued
	  	 	5	  
	 Table 3 - Trunk Cable Configuration
	  	 	10	  
	 Table 4 - Splice Box Pitch dimensions
	  	 	18	  
	 Table 5 - NA and EU Color Code
	  	 	25	  
	 Table 6 - Splice Box and Drop Connector Pin Assignment
	  	 	25	  
	 Table 7 - Required Enphase Test Cases
	  	 	29	  
		
	 Table of Figures
	  			
		
	 Figure 1 - Enphase Energy System
	  	 	9	  
	 Figure 2 - Rotating Phase Application
	  	 	11	  
	 Figure 3 - Non-Rotating Phase Application
	  	 	11	  
	 Figure 4 - Single Phase Trunk and Drop Application
	  	 	12	  
	 Figure 5 - Three Phase Trunk, Single Phase Drop Application
	  	 	12	  
	 Figure 6 - Contract Resistance Schematic
	  	 	16	  
	 Figure 7 - Splice Box Dimensions
	  	 	17	  
	 Figure 8 - Splice Box Pitch Along Trunk Cable
	  	 	17	  
	 Figure 9 - Drop Connector Dimensions
	  	 	21	  
	 Figure 10 - Drop Cable Dimensions
	  	 	24	  

  

					
		 	Page 3 of 31	 	

 

 
  

 Revision History EE ERD 

 

							
	 Version
	  	Date	  	 Author
	  	 Comments

				
	1.0	  	1/7/10	  	Martin Fornage	  	Original Draft
				
	1.1	  	2/18/10	  	Mark Baldassari	  	Updated per review
				
	1.2	  	2/23/10	  	Mark Baldassari	  	Updated vendor distribution
				
	1.3	  	4/18/10	  	Mark Baldassari	  	Synchronize revision with Knowledge Tree
				
	1.4	  	4/18/10	  	Mark Baldassari	  	Update following discussions with Phoenix Contact
				
	1.5	  	4/27/10	  	Mark Baldassari	  	Update UL version numbers, removing all references to press-fit, correct creepage/clearance specification, change mW to milliohms, and remove references to strain relief
boots.
				
	1.6	  	5/3/10	  	Mark Baldassari	  	Update voltage descriptions in Table 2, updated Drop Cable length specification, updated HiPot requirements in Section 4.2, added date code spec to Section 4.3.2, updated CSA
Test Elements to agree with PV document.
				
	1.7	  	5/10/10	  	Mark Baldassari	  	Added UL 2238. Table 2; changed voltage rating to 480 V, deleted “future”. Updated 4.1.2, 4.1.4, 4.2, 4.3, 4.5. Added 4.2.1
				
	1.8	  	5/19/10	  	Mark Baldassari	  	2.2.1 Removed UL 498, kept UL 1703. 2.2.2 Removed IEC61730. Updated 4.2 UL 1977 Type 1A and Type 2, left pull test alone pending discussion with CSA. Keeping Galvanic index, need
input from PxC on actual number. Updated 4.2.1 resistances. Left figure 8 unchanged. Kept 4.7.1. Deleted quantity requirement in section 5. Updated connector dimensions
				
	1.9	  	6/4/10	  	Mark Baldassari	  	3.2.1 - Removed 277/480 V 3-Phase from first row. Changed rated voltage to 600 V. 4.2 - Increased HiPot test voltages in compliance with 600 V rated voltage.
				
	1.10	  	6/9/10	  	Mark Baldassari	  	Added more Internal Reference Documents. Updated section 6 to match CSA test plan. Updated 4.3 include different pitch dimensions, added cable tie specs, added biodegradable IP54
sealing cap.
				
	1.11	  	7/7/10	  	Mark Baldassari	  	Updated Table 3. Added section 4.4.1 Racking Systems. Added Figure 6. Section 4.3 updated cable tie dimensions. Added requirement for Biodegradable Material. Updated CSA and
Enphase Test Elements to match PV/CSA test plan
				
	1.12	  	7/22/10	  	Mark Baldassari	  	Removed Tie-Wrap requirements under 4.3. Added more requirements for Biodegradable sealing cap. Option to add vendor logo to splice box, drop connector, and splice kit. Section
6.3 added IEC 61215 paragraph 10.13.
				
	Continued
Next 
Table	  		  		  	

 Table 1 - Revision History 

  

					
		 	Page 4 of 31	 	

 

 
  

 Revision History, Continued 

 

							
	 Version
	  	Date	  	 Author
	  	 Comments

	1.13	  	7/28/10	  	Mark Baldassari	  	Section 4.2 only one HiPot Voltage/Time combination needs to be tested. Added Figure 12 Drop Cable Dimensions to Section 4.6. Removed full load requirement for IEC61215 Sect.
10.13. Clarify 155.7 N on cables, 89 N on connectors. Removed Country of Origin requirement. Added tests for the terminator and splice kit
				
	1.14	  	10/06/10	  	Mark Baldassari	  	Modified the following sections; 3.2.1, Table 2, all the figures is section 3.2.1, section 3.2.2, section 4.3, section 4.3.1, section 4.4, section 4.4.1, section 4.5, section
4.6, section 4.6.1, section 4.7.2, section 4.7.2.1, section 4.8, section 6. Added insertion/extraction forces to section 4.4
				
	1.15	  	10/15/10	  	Mark Baldassari	  	Updated Table 3, Removed requirement for text or picture on how to disconnect Drop from Splice, Simplified cable labeling requirements in section 4.6.1.
				
	1.16	  	10/18/10	  	Mark Baldassari	  	Updated Section 4.4, changed insertion force requirement. Changed “shall” to “should”. Found corrupted link for “Drop Cable Drawing.” Recreated
graphic.

 Table 2 - Revision History, Continued 

  

					
		 	Page 5 of 31	 	

 

 
  

	1	Premise 

 The AC wiring system is required
to connect AC modules or Microinverters (single or TwinPacks) to the grid. This document provides requirements for this cable system. 
  

	2	References 

  

	2.1	Internal 

 Marketing Requirements Document
(MRD) for the Enphase Trunk and Drop Cabling 
 Link to Knowledge Tree; SystemAC Wiring System MRD.doc 

This Document: ETD Enphase Trunk and Drop AC wiring system ERD 
 Link to Knowledge Tree; EnphaseAcWiringSystemErd.doc 
 Product Verification Team, CSA Test
plan 
 Link to Knowledge Tree; ETD CSA Testplan.doc 
 Hardware Engineering Test Plan 
 Link to Knowledge Tree; EtdHwTestPlan.doc 

  

					
		 	Page 6 of 31	 	

 

 
  

	2.2	External 

  

	2.2.1	US standards 

  

			
	 NEC 2008
	  	ANSI/ NFPA 70 National Electric Code
		
	 UL 94
	  	Tests for Flammability of Plastic Materials for Parts in Devices and Appliances
		
	 UL 486, A, B, 1st Edition
	  	Standard for Wire Connectors and Soldering Lugs for Use with Copper Conductors
		
	 UL 514 B, C, 3rd Edition
	  	Non Metallic Outlet Boxes, Flush Device Boxes, and Covers
		
	 UL746 A
	  	Polymeric Materials - Short Term Property Evaluations
		
	 UL746 B
	  	Polymeric Materials - Long Term Property Evaluations
		
	 UL746 C
	  	Polymeric Materials - Used in Electrical Equipment Evaluations
		
	 UL746 D
	  	Polymeric Materials - Fabricated Parts
		
	 UL 1703, 3rd Edition
	  	Flat Plate Photovoltaic Modules and Panels
		
	 UL 1741, 2nd Edition
	  	 Inverters, Converters, Controllers and Interconnection System
 Equipment for Use with Distributed Energy Resources

		
	 UL 1977, 2nd Edition
	  	Component Connectors for use in Data, Signal, Control and Power Applications
		
	 UL 1277, Nov 14, 2001
	  	Standard for Electrical Power and Control Tray Cables with Optional Optical-Fiber Members
		
	 UL 2238
	  	Cable Assemblies and Fitting for Industrial control and Signal Distribution
		
	 UL 6703
	  	Connectors for use in Photovoltaic Systems

  

					
		 	Page 7 of 31	 	

 

 
  

	2.2.2	EN/IEC Standards 

  

			
	 IEC 60529, Edition 2.1
	  	International Standard, Degree of Protection Provided by Enclosures
		
	 IEC 60664-1
	  	Insulation coordination for equipment within low-voltage systems
		
	 IEC 61215
	  	Crystalline silicon terrestrial photovoltaic (PV) modules - Design qualification and type approval
		
	 IEC 61727
	  	Terrestrial Photovoltaic [PV] Power Generation Systems - General and Guide
		
	 EN 62109
	  	Safety of Power Converters for use in Photovoltaic Power Systems

  

	2.2.3	Other 

  

			
	Annex 4	  	Quality Test Plan

  

					
		 	Page 8 of 31	 	

 

 
  

	3	Application 

  

	3.1	Overview 

 The AC
wiring system is used to connect PCUs or ACMs to branch circuit wiring. This 3rd generation wiring system works on a ‘trunk and drop’ system. This system contrasts with the previous ‘in-line’ cabling in that the AC flow for a branch no longer flows through each
PCU, but instead is connected via a separate inverter cable which is then ‘tee’d’ to the branch. 
 

 
 Figure 1 - Enphase Energy System 

  

					
		 	Page 9 of 31	 	

 

 
  

 In addition to Neutral and Ground, trunks carry one, two or three phases depending upon the application.
Trunk sections will be built using a long ‘reel’ of trunk cabling – this will be a cable with drop connectors installed at regular intervals. This will allow an installer to simply cut a length of trunking cable to the appropriate
length for the installation. 
 The trunk is ultimately connected to a junction box at the upstream side by cutting back the exterior insulator,
stripping the wires bare for field termination, and running them through a strain relief and into a junction box for termination. 
 The last
element to the AC wiring system is the cable terminator, which provides a means to safely, reliably and easily terminate a cut length of trunk cable in the outdoor environment. 

 

	3.2	Product line up 

  

	3.2.1	Trunk Cable Assemblies 

 The product range
is described below: 
  

																									
	 	  	Market	  	Connections	  	Trunk	 	  	Drop	 
	 Application
	  	  	  	Current
Rating	 	  	Voltage
Rating	 	  	Current
Rating	 	  	Voltage
Rating	 	  	Connector
Keying	 
	 120/208 V 3-Phase
	  	NA	  	Figure 2	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	 	600 V	  	  	 	[***]	  
	 120/240 V Split Phase 120/208 V 3-Phase
	  	NA	  	Figure 3	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	 	600 V	  	  	 	[***]	  
	 230 V Single Phase Trunk and Drop
	  	EU	  	Figure 4	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	 	600 V	  	  	 	[***]	  
	 230/400 V 3-Phase Trunk, Single Phase Drop
	  	EU	  	Figure 5	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	 	600 V	  	  	 	[***]	  

 Table 3 - Trunk Cable Configuration 
 Notes: 
  

	 	•	 	 NA is North America, EU is Europe 

  

	 	•	 	 The compatibility levels show compatibility of different connectors 

  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

  

					
		 	Page 10 of 31	 	

 

 
  

 

                             

Figure 2 - Rotating Phase Application 
 

 
 Figure 3 - Non-Rotating Phase Application 

 
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

  

					
		 	Page 11 of 31	 	

 

 
  

 

                             

Figure 4 - Single Phase Trunk and Drop Application 
 

 
 Figure 5 - Three Phase Trunk, Single Phase Drop Application 

 
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

  

					
		 	Page 12 of 31	 	

 

 
  

	3.2.2	Drop Cable Assembly 

 The drop cable
assemblies are attached to the inverter. The length of the Drop Cable can vary from 400 mm to 1050 mm depending on the application. For a Microinverter application, the length is 400 mm long. For the ACM application the length is 1050 mm long. The
assembly includes a Drop Connector, Drop Cable, Chassis penetration Overmold, and PCB solder pins or wires. The wires shall be prepared solder tinned. Stripped or semi-stripped is not acceptable. The length of the PCB solder pins, or wires, may vary
in length depending on the application. 

  

					
		 	Page 13 of 31	 	

 

 
  

	4	Specifications 

  

	4.1	Generic Requirements, High Level Goals 

  

	4.1.1	Lifetime expectancy 

 The product shall be
designed for a 25 year, targeted lifetime. 
  

	4.1.2	Environmental Conditions 

 The product
will be used in an outdoor situation, subjected to direct UV radiation, wide temperature ranges, humidity, wind driven rain, salt fog, and other tests as defined in the Test Plan 

 

	 	•	 	 The temperature range is from -40 C to +65 C. 

  

	 	•	 	 All cable shall be rated to +90 C dry and +75 C wet 

  

	 	•	 	 All externally exposed components shall be rated for direct UV exposure as specified under UL 746 C, F1 Rating 

 

	 	•	 	 The mated connector pairs and splice box with sealing cap shall be rated to IEC 60529, protection class, IP 67. 

 

	4.1.3	RoHS 

 All components and material shall
be RoHS compliant. 
  

	4.1.4	Defect rate 

 See Quality Plan –
Annex 4 as part of the contract 

  

					
		 	Page 14 of 31	 	

 

 
  

	4.2	Common Requirements for Splice Box and Drop Connectors 

  

	 	•	 	 The connector shall be locking 

  

	 	•	 	 A tool shall be required for disconnection. 

  

	 	•	 	 A single handed release is required 

  

	 	•	 	 Connectors shall be polarized 

  

	 	•	 	 The Protective Earth contact shall be “make first, break last.” 

 

	 	•	 	 Connectors of different circuits shall not be capable of being mated (keyed.) 

 

	 	•	 	 The connectors shall meet the relevant touch safe requirement per UL 1977, Section 10.2 

 

	 	•	 	 The connectors shall meet the creepage/clearance distances per UL 1977, Type 1A for interface between the Splice Box and Drop Connector. And Type 2 for
the Splice Box. 

  

	 	•	 	 The connectors shall meet the creepage/clearance distances per IEC 60664-1, Overvoltage Category III, Rated Impulse Voltage 4 kV, and Pollution Degree
II. 

  

	 	•	 	 The connector pins shall be numbers or pin 1 indicated with a unique, visible marking 

 

	 	•	 	 The connectors shall be water proof per IEC 60529 IP67 when mated and during the pull tests at any angle 

 

	 	•	 	 The connector shall pass the IEC 61215 tests paragraphs 10.11, 10.12 and 10.13 

 

	 	•	 	 IEC 61215 paragraph 10.11, Thermal Cycling Test, may be substituted with TC200 

 

	 	•	 	 IEC 61215 paragraph 10.12, Humidity Freeze Test, may be substituted with HF10 

 

	 	•	 	 IEC 61215 paragraph 10.13, Damp Heat Test, shall be performed 

 

	 	•	 	 The connector shall pass the HiPot testing from each wire to each wire per Enphase Energy requirements, based on 600 V working volts, plus 10%. All
four test voltage and time below are equivalent. Therefore, only one test voltage/time combination needs to be validated. 

  

			
	600V*(1.1)*2+1000 =	  	2320 VAC for 60 seconds
	(600V*(1.1)*2+1000)*sqrt (2) =	  	3281 VDC for 60 seconds
	(600V*(1.1)*2+1000)*1.2 =	  	2784 VAC for 1 second
	(600V*(1.1)*2+1000)*sqrt (2)*1.2 =	  	3937 VDC for 1 second

  

	 	•	 	 The connectors shall be constructed with materials that meet the flammability requirements UL 94 V0. 

 

	 	•	 	 The connectors shall be rated for “disconnect under load” per UL 1977, Section 15, using Enphase Energy inverters for a minimum of 250
cycles. 

  

	 	•	 	 The wires shall be connected permanently to the contacts with a welded, crimped or insulation displacement non reversible method

  

	 	•	 	 The contact resistances between the Splice Box and Drop Connector shall be less than 5 milliohms at the maximum rated current and temperature

  

	 	•	 	 The galvanic index of metal to metal interfaces shall be less than 0.15V 

 

	 	•	 	 All cables shall be protected by strain relief features 

  

					
		 	Page 15 of 31	 	

 

 
  

	4.2.1	Splice Box, Trunk Welds, and Drop Connector Contact Resistance 

  

	 	•	 	 The contact resistance shall be measured across various points in the circuit. Refer to Figure 6. 

 

	 	•	 	 The resistance shall be less than [***] milliohms from A to B 

 

	 	•	 	 The resistance shall be less than [***] milliohms from C to D, from C to B, or from D to B 

 

	 	•	 	 The resistance shall be less than [***] milliohms from A to D or from A to C 

 
 Figure 6 - Contract Resistance Schematic 

 
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

  

					
		 	Page 16 of 31	 	

 

 
  

	4.3	Splice Box Connector 

  

	 	•	 	 The maximum Splice Box Connector dimension shall be 118 mm long x 60 mm tall x 20 mm thick. Including the IP67 Sealing Cap, 32 mm thick.

 

 
 Figure 7 - Splice Box Dimensions 

 

	 	•	 	 The pitch between Splice Box Connectors shall be made for the following applications; 300 mm pitch, 1025 mm pitch, and 1700 mm pitch.

 

 
 Figure 8 - Splice Box Pitch Along Trunk Cable 

  

					
		 	Page 17 of 31	 	

 

 
  

							
	 Pitch Type
	  	 Typical

Application
	  	Dimension A	  	Dimension B
	 300 mm
	  	Manufacturing Test	  	600 mm +/- 30 mm	  	300 mm +/- 30 mm
	 1025 mm
	  	ACM or PCU	  	2050 mm +/- 45 mm	  	1025 mm +/- 45 mm
	 1700 mm
	  	Dually	  	3400 mm +/- 45 mm	  	1700 mm +/- 45 mm

 Table 4 - Splice Box Pitch dimensions 

 

	 	•	 	 The Cable running through the Splice box shall meet a mechanical stress (pull test) with [***]. 

 

	 	•	 	 On some cables there shall be a periodic built-in phase rotation to the drop. See Table 3 - Trunk Cable Configuration 

 

	 	•	 	 An IP67 Sealing Cap shall be provided for the Splice Box Connector. 

 

	 	•	 	 A Shipping Cap shall also be provided and be made out of Biodegradable materials. Series Production in 2011 shall start with a primalery shipping cap
until the Biodegradable Cap is complete for the Series Production beginning 2012. 

  

	 	•	 	 The material shall be usable for up to one year, as installed, in a high humidity environment, up to [***] to [***], out of direct
contact with water. 

  

	 	•	 	 Series Production in 2011 shall start with a primarily shipping cap until the development of a Biodegradable Shipping Cap is completed. This
development requires extensive materials investigation as well as prototyping and design approval from ENPHASE. Therefore, it is not possible to determine a definite date that the biodegradable solution will be ready for series production. After
design approval from ENPHASE, test pre-production samples would be available in 12 calendar weeks. 

  

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS. 

  

					
		 	Page 18 of 31	 	

 

 
  

	4.3.1	Splice Box Marking, Molded into Splice Box, Visible from Outside 

  

	 	•	 	 Text: IP67 

  

	 	•	 	 Enphase Energy logo, CSA US Logo, and CE Mark. No color is required. 

 
  

	 	•	 	 Optionally, vendor logo is permitted. 

  

	 	•	 	 Text: “WARNING: Use only with Enphase Energy products in accordance with Enphase Energy Installation Manual” 

 

	 	•	 	 Date Code indicating when connector was made; YYMM 

  

	 	•	 	 Tool identification number for injection mold 

  

	 	•	 	 Text or a unique symbol shall be present to indicate pin one. 

 

	 	•	 	 The housing shall display a mark indicating the material type used. This information will be used to indicate how to recycle the material.

  

					
		 	Page 19 of 31	 	

 

 
  

	4.3.2	Splice Box Labeling 

  

	 	•	 	 Date code for when the assembly was built, year and week, YYWW 

 

	 	•	 	 Full Enphase Part number, base number plus revision, xxx-xxxxx-xx. 

 

	 	•	 	 For rotating phase applications, i.e. 120/208 V three phase, the connector shall have a three distinct letter marking for each phase connection; A, B,
and C. 

  

	 	•	 	 For non-rotating phase application, i.e. 120/240V split phase, a distinctive letter mark is not required. If one is provided, the letter shall be the
same. 

  

	 	•	 	 Voltage rating for the cable shall be marked, either; 

 

	 	(1)	120/208 and 277/480 V 3-Phase 

  

	 	(2)	120/240 V Split Phase 

  

	 	(3)	230/400 V 3-Phase 

  

	4.3.3	Splice Box Sealing Cap Labeling, Molded into Sealing Cap 

 The following labels shall be molded into the housing and visible when mated to the Splice Connector. 
  

	 	•	 	 Enphase Energy Logo. No color is required. 

 

 
 The following labels shall be molded into the housing. It is not required to be visible when mated to the Spice
Connector 
  

	 	•	 	 Date Code indicating when the part was created 

  

	 	•	 	 Tool identification number for injection mold 

  

	 	•	 	 The housing shall display a mark indicating the material type used. This information will be used to indicate how to recycle the material.

  

					
		 	Page 20 of 31	 	

 

 
  

	4.4	Drop Connector Requirements 

  

	 	•	 	 The insertion and extraction forces of the drop connector, while mating and un-mating the splice box should be less than [***].

  

	 	•	 	 The maximum Drop Connector dimension shall be 61 mm deep x 62 mm wide x 20 mm thick including the connector and the drop cable.

 

 
 Figure 9 - Drop Connector Dimensions 
  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

  

					
		 	Page 21 of 31	 	

 

 
  

	4.4.1	Racking System Compatibility 

 The cabling
system shall be easily mounted in rack systems that the Enphase Microinverter is compatible with. Please reference the racking compatibility list at http://www.enphaseenergy.com/downloads/EnphaseAppNote RackingCompatibility.pdf 

  

					
		 	Page 22 of 31	 	

 

 
  

	4.4.2	Drop Connector Labeling 

  

	 	•	 	 The following labels shall be molded into the housing and visible when mated to the Splice Connector. 

 

	 	•	 	 Text: IP67 

  

	 	•	 	 Enphase Energy logo, CSA US Logo, and CE Mark. No color is required. 

 
  

	 	•	 	 Optionally, vendor logo is permitted. 

  

	 	•	 	 Tool identification number for injection mold 

  

	 	•	 	 Text or a unique symbol shall be present to indicate pin one. 

 

	 	•	 	 The housing shall display a mark indicating the material type used. This information will be used to indicate how to recycle the material.

  

					
		 	Page 23 of 31	 	

 

 
  

	4.5	Drop Cable Assembly, Chassis Penetration Overmold 

  

	 	•	 	 The Overmold shall provide a seal to the chassis to eliminate potting compound from leaking during the assembly process. 

 

	 	•	 	 Overmold size and shape may vary depending on the final application. 

 

	 	•	 	 The Drop Connector when mated to the Splice Box shall meet the mechanical stress (pull test) requirements per UL 1741 

 

	 	•	 	 The Cable connected to the Drop Connector and Chassis Penetration Overmold shall meet a mechanical stress (pull test) with 155.7 N.

  

	 	•	 	 The length of the Drop Cable shall vary from 400 mm to 1050 mm depending on the application. For a Microinverter application, the length is 400 mm
long. For the ACM application the length is 1050 mm long. 

 Figure 10 - Drop Cable Dimensions

  

	 	•	 	 The Chassis Penetration Overmold shall support the PCB connections or wire leads to be soldered into the board. 

 

	 	•	 	 The Drop Cable shall make an electrical connection to the PCB using solder techniques. 

  

					
		 	Page 24 of 31	 	

 

 
  

	4.6	Cable requirements 

  

	 	•	 	 The cables shall comply with the relevant standard and bear the relevant rating such as TC-ER for the North American version.

  

	 	•	 	 The trunk cable conductors shall be color coded appropriately: 

 

											
	 Market
	  	 L1
	  	 L2
	  	 L3
	  	 N
	  	 PE

	US	  	Black	  	Red	  	Blue	  	White	  	 Green or
 Green/Yellow

						
	EU	  	Brown	  	Black	  	Grey	  	Blue	  	Green/Yellow

 Table 5 - NA and EU Color Code 

 

	 	•	 	 The Drop cable can optionally use the same color code as the Trunk cable. If uniform color is used, such as all black, markings shall be added to
identify the conductor number 

  

	 	•	 	 The cable shall be flexible. The minimum bend radius shall be 10 times the cable outside diameter. 

 

	 	•	 	 The wire arrangement shall be as such: 

  

									
	 Wire position
	  	1	  	2	  	3	  	4
	4 conductor (future)	  	L1	  	PE	  	L2	  	N
					
	3 conductor (future)	  	—	  	PE	  	L2	  	N

 Table 6 - Splice Box and Drop Connector Pin Assignment 

 

	 	•	 	 Minimum wire gauges shall be 12 AWG and 18 AWG for the trunk and drop wires respectively. 

  

					
		 	Page 25 of 31	 	

 

 
  

	4.6.1	Trunk and Drop Cable Jacket Labeling 

  

	 	•	 	 The following is an example of the text that shall be present on the cable jacket. Label is per UL and CSA requirements. 

  

					
		 	Page 26 of 31	 	

 

 
  

	4.7	Accessories 

  

	4.7.1	Cord Grip 

 An off-the-shelf cord grip is
required to provide IEC60529 IP67 protection at the user provided junction box. 
  

	4.7.2	Trunk Cable Termination 

 A device to
terminate a cut length of trunk cable is required which will meet electrical, environmental and lifespan requirements for the system. This device must be installable without use of specialized or power tools (i.e. screwdriver, wrench is acceptable,
custom crimp tool or power drill is not). 
 The Trunk Cable Terminator must meet the same test levels as the Splice Box for the timve pertinent
specifications listed below. 
  

	 	•	 	 Mechanical Stress Test (pull test) of 155.7 N. 

  

	 	•	 	 445 N Crush Test 

  

	 	•	 	 HiPot 

  

	 	•	 	 Cold Impact 

  

	 	•	 	 IP67 

  

	4.7.2.1	Trunk Cable Termination Connector Labeling 

  

	 	•	 	 Text shall be molded into Cable Termination body 

  

	 	•	 	 Enphase Energy logo, CSA US Logo, and CE Mark. No color is required 

 
  

	 	•	 	 Optionally, vendor logo is permitted. 

  

	 	•	 	 Other descriptive labeling may be provide on the packaging. 

  

					
		 	Page 27 of 31	 	

 

 
  

	4.8	Splice Kit 

 A device or system to splice
the trunk cable in the event of damage or provide length extension shall be provided. The spliced cable will still meet relevant standards and code. The trunk cable will be cut to fit and installed into a customer site, and it will not be acceptable
to remove the whole cable in the event of damage. 
 In addition, it is highly desired that the repair device/system provide the capability to
connect two lengths of trunk and drop cable while still adhering to relevant standards and code. 
 The Splice Kit must meet the same test
levels as the Splice Box for the five pertinent specifications listed below. 
  

	 	•	 	 Mechanical Stress Test (pull test) [***] 

  

	 	•	 	 [***] 

  

	 	•	 	 HiPot 

  

	 	•	 	 Cold Impact 

  

	 	•	 	 IP67 

 Splice Kit concepts
utilizing two different termination methods were provided by PHOENIX CONTACT and are being evaluated by ENPHASE. One method utilizes screw termination and the second design uses a spring contact. After design approval from ENPHASE, testable
pre-production samples would be available according the following estimated schedules 
 Splice Kit with screw contacts requires [***]
calendar weeks for first pre-production parts (series grade tooling but not fully tested by the PHOENIX test labs) 
 Splice Kit with spring
contacts requires [***] calendar weeks for first pre-production parts (series grade tooling but not fully tested by the PHOENIX test labs) 
  

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS. 

  

					
		 	Page 28 of 31	 	

 

 
  

	5	Cost 

 See the Prices in the Annex 6
Document “Annex 6 Products, Pricing and Delivery Conditions” 
  

	6	CSA Test Elements 

 Below is an example of
the test elements, and is for reference only. The actual test requirements are specified in the following document; 
  

	6.1	CSA Test Elements and Standards 

 See the
CSA Testplan Rev 0.7 
  

	6.2	Required Enphase Test Cases 

  

					
	 Tests Conducted by Enphase
	  	 Standard/Requirement
	  	 Notes

			
	Leakage Current Test	  	UL 1703 Sec 21	  	Splice, connectors
			
	Bonding Path Resistance Test	  	UL 1703 Sec 25	  	Splice, connectors
			
	IP 67 Environmental tests	  	IP 67	  	Splice, connectors
			
	IEC 61215, Damp Heat	  	IEC 61215, Section 10.13, Damp Heat Test, +85 °C, 85% RH, 1000 Hrs.	  	Splice, connectors

 Table 7 - Required Enphase Test Cases 

  

					
		 	Page 29 of 31	 	

 

 
  

	6.3	Acronyms 

  

			
	AC	  	Alternating Current
	ACM	  	AC module
	AVG	  	Average
	CEC	  	California Energy Commission
	CSA	  	Canadian Standards Association
	DC	  	Direct Current
	EFT	  	Electric Fast Transient
	EMI	  	Electro Magnetic Interference
	ERD	  	Engineering Requirements Document
	ESD	  	Electro Static Discharge
	ESR	  	Equivalent Series Resistance
	ETD	  	Enphase Trunk and Drop Cabling System
	EU	  	Europe
	L1	  	Line 1
	L2	  	Line 2
	L3	  	Line 3
	MRD	  	Marketing Requirements Document
	MPPT	  	Maximum Power Point Tracking
	N	  	Neutral
	N	  	Newtons
	NA	  	North America
	NRTL	  	Nationally Recognized Testing Laboratory
	PCB	  	Printed Circuit Board
	PCU	  	Power Conversion Unit
	PE	  	Protective Earth
	PV	  	Photo-Voltaic
	PV	  	Product Verification
	PV Module	  	Photo Voltaic Module (colloquially, a ‘solar panel’)
	RMS	  	Root Mean Square
	RoHS	  	Restriction of Hazardous Substances
	STC	  	Standard Test Conditions
	TBD	  	to Be Determined

  

					
		 	Page 30 of 31	 	

 

 
  

	7	Signatures PxC and EE 

  

			
	Phoenix Contact GmbH & Co. KG	  	Phoenix Contact GmbH & Co. KG
		
	Blomberg, 2010-10-29	  	Blomberg, 2010-11-02
		
	 

	  	 

		
	Karl-Paul Tölke	  	Dr. Thomas Beier
		
	Chief Spezialist Laboratory Quality and Process Technology Business Unit Device Connection Technology	  	Head of DCT Development Department
		
	Phoenix Contact ..	  	Phoenix Contact ...
		
	Harrisburg, Oct. 26, 2010	  	Harrisburg, Oct. 26, 2010
		
	 

	  	 

		
	Name Michael Peppler	  	Name
		
	Function Business Unit Director	  	Function
		
	Enphase Energy Inc.	  	Enphase Energy Inc.
		
	Petaluma, 7 Dec 10	  	Petaluma,                     
		
	 

	  	  

		
	Name Paul Nahi	  	Name
		
	Function President & CEO	  	Function

  

					
		 	Page 31 of 31	 	

 PxC Project Schedule “AC wiring system” 

 
 Comments: 
 EE order and EE design freeze series is completed in KW34 
 UL-listing be done by enphase

 shipping time per air freight = 1 week 
 shipping time per container: Flex USA = 39 days and Flex China = 45 days 
 Detailed descriptions
for preproduction parts in the contract annex 6 and PP-slide “20100719_suncal_description pre production” 
 ramp up of series
production will start in CW12/2011 
 project schedule is updated with EE team in design review meeting (13.07.2010) 

Enphase acknowledges schedule, but schedule does not meet needs. 
 Enphase needs first series parts by no later than           CW01/11 (1/7/2011) 
 Enphase needs CSA ready prototypes by no later than CW38/10 (9/23/2010)

 

 Description of preproduction parts (Sample C) 

Functionality and safety of parts is tested 
 An
additional label on each part with “Sample C” and “manufacture date” 
 Trunk cable with four and five conductors possible

 Cables will be shipped in series packaging 
 Following exceptions are possible: 
 Products will not be fully qualified per CSA testplan
by PxC. Note: full tested prototypes require additional 5 weeks of test time 
 Production processes are not fully validated per process
capability studies. 
 Deviations of the specification are possible

					
	Phoenix Contact GmbH & Co. KG	 		  	Enphase Energy Inc.
			
	Blomberg, 19.10.2010	 		  	Petaluma, 7 Dec 10
			
	 

	 		  	 

	 Helmut Friedrich
 Vice
President Head of Business Unit Device Connetion Technology
	 		  	 Paul Nahi

CEO

 

  

									
	EE	  	=	 	Enphase	  		  	
	PxC	  	=	 	Phoenix Contact	  		  	

  

					
	Phoenix Contact GmbH Co. KG	 		 	
	DCT. projects. A. Engel	 	1/1	 	

 Annex 4 
 Quality Assurance Agreement 
 I. Scope of Agreement 

 

	1.	This Agreement shall apply exclusively to the CONTRACTUAL PRODUCTS outlined in the Cooperation Agreement (Annex 6), which are delivered by Phoenix Contact on the basis
of the orders Phoenix Contact receives and accepts from ENPHASE during the term of this Agreement. 

  

	2.	The products shall be in compliance with the mutually agreed descriptions (specifications, Supplier data sheets, drawings). 

II. Quality Assurance and Environmental Management 
  

	1.	Phoenix Contact shall maintain a quality management system which meets ISO 9001 and ISO 14001. Phoenix Contact shall also manufacture and test the products in
accordance with the stipulations of such quality management system. 

  

	2.	If Phoenix Contact receives production or test equipment, software, services, materials or other supplies from third parties for the manufacture or quality assurance of
its products, Phoenix Contact shall ensure that these are in compliance with its quality management system, whether it be by contract with these parties or through carrying out itself such tests as are necessary to assure compliance with its quality
management system. 

  

	3.	Phoenix Contact shall keep records of aforementioned quality assurance procedures and especially those relating to measured values and test results. Phoenix Contact
shall maintain these records in an appropriate manner and for a period of not less than three (3) years. Phoenix Contact shall allow ENPHASE, upon request, to inspect the records and product samples for the CONTRACTUAL PRODUCTS.

  

	4.	Phoenix Contact shall mark all CONTRACTUAL PRODUCT with a date code label and version number. Additionally, Phoenix Contact shall mark each plastic component with the
date code of manufacture. 

  

	5.	The CONTRACTUAL PRODUCTS shall exhibit a FIT’s rate not to exceed that which is calculated in accordance with SR-332 or equivalent industry standard. Phoenix
Contact shall perform a reliability analysis and submit calculated results to ENPHASE within 60 days of design completion. 

  

	6.	Product DPPM shall not exceed the following agreed-upon targets during all phases of the product lifecycle including inspection, installation, deployment and operation.
The quality targets are listed in Annex A. 

  

	7.	Materials, Processes, and Design shall be selected to support the service life of at least [***], and Phoenix Contact acknowledges that it must be able to
demonstrate empirical data that validates this requirement, upon request. This requirement is met by performing a product-specific quality inspection and test plan agreed upon with ENPHASE. 

 
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

 Annex 4 
 III. Phoenix Contact’s Obligation to Provide Proof and Information to ENPHASE 
  

	1.	Phoenix Contact shall, upon reasonable request, allow ENPHASE to inspect and verify its compliance with the quality assurance measures set forth in Section II above.
Phoenix Contact shall therefore, after prior agreement of the Parties on the date of such an inspection, grant ENPHASE reasonable access to its business premises of the CONTRACTUAL PRODUCTS and shall make available a member of its staff for the
duration of the inspection visit. Phoenix Contact may deny access to and inspection of classified manufacturing methods and other industrial secrets. 

  

	2.	Phoenix Contact shall make no changes to the CONTRACTUAL PRODUCTS, Specifications, manufacturing process, or testing procedures or criteria used in manufacturing of the
CONTRACTUAL PRODUCTS, if such changes would affect, or would likely affect, the CONTRACTUAL PRODUCT’S form, fit, or function, unless ENPHASE has provided its prior written approval of such change, with such approval not to be unreasonably
withheld or delayed. 

  

	3.	Should Phoenix Contact note an increase in deviations in the real quality of CONTRACTUAL PRODUCTS already delivered or in the process of being delivered from the
mutually agreed specifications (i.e. a reduction in quality), Phoenix Contact shall immediately notify ENPHASE thereof and of the measures Phoenix Contact plans to take to remedy such a problem. 

 

	4.	Phoenix Contact shall ensure, whether by identification of the CONTRACTUAL PRODUCTS, or, if such is impossible or impractical, by other suitable means, that, in case
defects are detected in a CONTRACTUAL PRODUCT, Phoenix Contact can readily determine whether any other CONTRACTUAL PRODUCTS have been affected and identify them. Phoenix Contact shall inform ENPHASE about its identification system or other measures
which it has taken in order to enable the latter to carry out its own investigations, if necessary. In doing so, the traceability can only be ensured if ENPHASE provides the corresponding information as regards the material number, order, delivery
slip number and/or the corresponding batch and/or serial number. ENPHASE is obliged to provide these data. If these details cannot be provided Phoenix Contact shall be released from its duty for traceability. 

IV. Receiving Inspection by ENPHASE 
  

	1.	Upon delivery of the CONTRACTUAL PRODUCTS, ENPHASE or its representative shall promptly confirm that they accurately correspond to the purchase order quantity and type
and whether there is any apparent damage resulting from their transport or any other visible defect. 

  

	2.	If, during such inspection, ENPHASE or its representative notes any apparent damage or defect or any non-conformity with the ordered quantity and type, it shall
promptly notify Phoenix Contact thereof. If ENPHASE or Buyer’s representative notes some damage or defect at a later date, it shall also promptly report this to Phoenix Contact. Upon receiving notice of such damage, defect or non-conformity,
Phoenix Contact shall promptly remedy such. 

 Annex 4 
  

	3.	No failure by ENPHASE to detect any defect or damage to the CONTRACTUAL PRODUCTS and notify Phoenix Contact as described in this Section IV shall serve to release
Phoenix Contact from its warranty obligations as set forth in this Agreement. 

 V. Quality Assurance Representative

 Each of the CONTRACTUAL PARTIES hereby designates its quality assurance representative below, who shall represent it on
quality assurance matters related to this Agreement. This representative shall make any decisions relating to such quality assurance issues. Should either of the CONTRACTUAL PARTIES replace its quality assurance representative, it shall promptly
notify the other CONTRACTUAL PARTY of such replacement in writing. The quality assurance representatives are listed in Annex A. 
  

			
	Phoenix Contact GmbH & Co. KG	  	Phoenix Contact GmbH & Co. KG
		
	Blomberg, 25.10.2010	  	Blomberg, 2010-10-19
		
	 

	  	 

	Karl-Paul Tölke	  	Dirk Drühe
	Chief Spezialist Laboratory Quality and Process Technology Business Unit Device Connection Technology	  	Head of QW-PI
		
	Enphase Energy Inc.	  	
		
	Petaluma, 7 Dec 10	  	
		
	 

	  	
	Paul Nahi	  	
	CEO	  	

 Annex 4 
 Annex A 
 1. DPPM Targets 

2011 – [***] 
 2012 – [***] 
 2013 – [***] 

2014 – [***] 
 2.
Quality Assurance Representatives 
  

									
	  	 	 Buyer
	 	 Seller

	Quality agreement	 	Name	 	Don Cassity	 	Name	 	Dirk Drühe
		 	Department:	 		 	Department:	 	Head of QW-PI
		 	Telefon:	 	(707) 763-4784 x-7108	 	Telefon:	 	+49-5235 / 3-41860
		 	Telefax:	 		 	Telefax:	 	+49-5235 / 3-41829
		 	E-Mail:	 	dcassity@enphaseenergy.com	 	E-Mail:	 	ddruehe@phoenixcontact.com
					
	Complaint management	 	Name	 	Don Cassity	 	Name	 	Bernd Hoppe
		 	Department:	 		 	Department:	 	Head of QW-BM
		 	Telefon:	 	(707) 763-4784 x-7108	 	Telefon:	 	+49-5235 / 3-41674
		 	Telefax:	 		 	Telefax:	 	+49-5235 / 3-40541
		 	E-Mail:	 	dcassity@enphaseenergy.com	 	E-Mail:	 	bhoppe@phoenixcontact.com
		 		 		 		 	
					
	BU Technician	 	Name	 	Don Cassity	 	Name	 	Karl-Paul Tölke
		 	Department:	 		 	Department:	 	Department: Director Quality Assurance BU DCT
		 	Telefon:	 	(707) 763-4784 x-7108	 	Telefon:	 	+49-5235 / 3-41314
		 	Telefax:	 		 	Telefax:	 	+ 49-5235 / 3-40002
		 	E-Mail:	 	dcassity@enphaseenergy.com	 	E-Mail:	 	kptoelke@phoenixcontact.com

  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

 Annex 4 
  

					
	Phoenix Contact GmbH & Co. KG	 		 	Phoenix Contact GmbH & Co. KG
			
	Blomberg, 2010-10-25	 		 	Blomberg, 2010-10-19
			
	 

	 		 	 

	Karl-Paul Tölke	 		 	Dirk Drühe
	Chief Spezialist Laboratory Quality and Process Technology Business Unit Device Connection Technology	 		 	Head of QW-PI
			
	Enphase Energy Inc.	 		 	
			
	Petaluma, 7 Dec 10	 		 	
			
	 

	 		 	
	Paul Nahi	 		 	
	CEO	 		 	

									
	Annex 5	 		 		 		  	SAP-Dokumenten-Nr.
		 		 		 		  	  

 NON-DISCLOSURE AGREEMENT 
 Between 
 Enphase Energy 

201 1st Street 

Petaluma, CA 94952 
 United States of America 
 - hereinafter referred to as
“Enphase ”- 
 and 

Phoenix Contact GmbH & Co. KG 
 Flachsmarktstraße 8 
 32825 Blomberg 

Germany 

Phoenix Contact Holdings, Inc. 
 586 Fulling Mill Road 
 Middletown, PA 17057 

HARRISBURG, PA. 17111-0100 
 United States of America 
 - both hereinafter referred to as
“Phoenix Contact”- 
 - hereinafter singly or jointly referred to as “Contractual Partners” -

 the following Agreement is concluded: 
 Preamble 
 The Phoenix Contact Group develops, produces and sells innovative products and
systems of electrical connection and automation technology worldwide. 
 The company has long-term and comprehensive process know-how for
in-house development and manufacturing. 
 In connection with talks on the project “Enphase AC wiring system ERD”
(“Purpose”), the contractual partners shall provide each other with information. 
 Within this Purpose it is necessary that Phoenix
Contact and/or an affiliated company as well as/or subsidiaries of Phoenix Contact and Enphase pass on information to the other contractual partner. To guarantee an open cooperation within this Purpose the following shall be agreed as regards the
imparted information: 
 1. Confidential are all information, documents, data and/or knowledge, especially technical and/or economic
information, construction documents, specifications, drawings, samples, prototypes, test results and/or any other know how (hereinafter “Confidential Information”) that is made available by one contractual partner to the other
contractual partner within the aforementioned Purpose and that refer to former, present or future activities of the contractual partner or any affiliated company in the area of research, development, production methods, procedures, technologies,
products, company management and trade for this purpose. Confidential Information can be conveyed or provided for inspection verbally or in writing; as sample, prototype, electronic or visual data formats of any kind or in any other
embodiment. Confidential Information comprise also all copies, all material generated by themselves and summaries made hereof. 
 The
disclosing contractual partner is not obligated to confidentiality as regards his own Confidential Information imparted to the receiving contractual partner. The Confidential Information is confidential solely for the receiving
contractual partner, in fact only as regards the Confidential Information imparted by the disclosing contractual partner. This Confidential Information may be passed on without restrictions to third parties by the disclosing
contractual partner. 
 2. Confidential Information is and remains property of the disclosing contractual partner. 

 3. The contractual partners have to properly keep all Confidential Information passed on by the other
contractual partner and shall not disclose it to any third partner. Confidential Information, however, may be passed on to third parties if the fulfilment of contractual obligations by one contractual partner makes this imperative. Before
Confidential Information is distributed by the receiving contractual partner the written consent to the distribution has to be obtained from the disclosing contractual partner. With such a necessary disclosure to third parties, this third party is
committed to secrecy to the same extent as the contractual partners under this Agreement. The information may not be used for any other objective than for achieving the Purpose of the cooperation. Third parties in terms of this Agreement are not the
affiliated companies and subsidiaries of Phoenix Contact pursuant to the preamble. A distribution of Confidential Information through Phoenix Contact to these companies is permitted. 
 4. The contractual partners undertake to return all received Confidential Information on request of the respective disclosing contractual partner, or to destroy it on written request after
the termination of this Agreement. The same also applies to Confidential Information stored, processed electronically or visually, copied or duplicated. The above mentioned regulations only apply to routinely compiled backup copies of
Confidential Information, which was exchanged electronically, as well as Confidential Information or copies thereof, which have to be retained and/or stored by the receiving contractual partner or their advisors in compliance with the
terms of applicable law or internationally accepted accounting guidelines, insofar that this Confidential Information has to be returned or destroyed on written request of the disclosing contractual partner at the end of the respective
compulsory retention period. 
 5. Confidential Information is not information that 

 

	a.	at the time of it’s transmission was already common knowledge; 

  

	b.	at the time of it’s transmission was already known to the other contractual partner; 

 

	c.	became common knowledge after it’s transmission without the assistance of the other contractual partner; 

 

	d.	was made accessible by third parties to the other contractual partner legally and without any restriction regarding non-disclosure or usage after it’s
transmission; 

  

	e.	may be disclosed upon written approval of the other contractual partner; 

  

	f.	have been developed by the receiving contractual partner independently and without recourse to Confidential Information or in accordance with the exceptions stipulated
under paragraph 5 a – e. 

 The contractual partner who refers to the exception has to prove the existence of its
prerequisites. 
 The contractual partners may disclose Confidential Information from the other contractual partner as far as the
receiving contractual partner is obligated to do so due to an official or judicial directive or any mandatory legal regulations provided the contractual partner obliged to the disclosure immediately informs the other contractual partner about it
beforehand for the purpose of exercising his rights, and the contractual partner committed to the disclosure makes any reasonable effort to ensure that the Confidential Information is dealt with confidentially. Confidential Information
disclosed in such a way has to be marked as “confidential” by the contractual partner obliged to the disclosure. 
 6. Licences
and/or rights for using and/or transferring any patents, rights of use, brands, samples, intellectual property or any other property rights shall not be granted neither expressly nor implied by this Agreement. The receiving contractual partner shall
especially not be entitled to file an application for patents or other property rights with and/or on the basis of Confidential Information he obtained. In the event the receiving party was granted patents or other property rights contrary to
the aforesaid these must be transferred to the issuing contractual partner free of charge upon the initial request. Furthermore, the assignment of Confidential Information does not constitute any rights for prior use for the receiving
contractual partner. 
 7. The contractual partners shall make sure that the confidential material is only made available to those
employees who are indispensable for fulfilling the Purpose. The appointed employees are also committed to a corresponding equivalent secrecy obligation unless there has already been a basic obligation to secrecy within the employment contract.

 8. A warranty or liability as regards accuracy, freedom from errors, absence of property rights of third parties, completeness and/or
usability of the Confidential Information shall be excluded as far as legally permitted. 
 9. This Agreement becomes effective
upon signature by both contractual partners and ends after one year without needing notice of termination. This Agreement will be prolonged by another year if the contractual partners have not concluded their cooperation at the end of the respective
one-year term in accordance with the preamble. The provisions of this Agreement shall remain effective even after the termination of this Agreement for a period of 5 years. A cancellation of this Agreement is not possible. 

10. If a contractual partner gets insight into production processes or any other company secrets of the other contractual partner that should not
be disclosed and which were made known to him within audits or through business relations, the non-disclosure agreement shall be valid for audit results, documents and other company findings unlimited in time beyond the term of this Agreement.

 11. No ancillary verbal agreements have been made. Any amendments and/or supplements to this
Agreement must be made in writing to become legally effective. This formal requirement can only be waived in mutual agreement and in writing. None of the contractual partners can transfer this Agreement or individual rights or duties under this
Agreement to third parties without the written consent of the other contractual partner, unless otherwise agreed between the contractual partners in this Agreement. 
 12. All disputes arising in connection with this Agreement or its validity shall be finally settled in accordance with the Arbitration Rules of the German Institute for Arbitration e.V. (DIS)
without recourse to the ordinary courts of the law. The Arbitration Tribunal may also decide on the validity of this Arbitration Agreement with binding effect for the state-run courts. The place of arbitration is Paderborn, Germany. The Arbitration
Tribunal consists of three arbitrators. The applicable law is German Law. The language of the arbitral proceedings is English. 
 13.
Should individual provisions of this Agreement be ineffective or non-feasible or contain any regulatory gaps this will not affect the validity of the other provisions. Instead of the ineffective or non-feasible provision, that effective and feasible
provision will be considered as agreed that comes closest to the meaning and purpose of the ineffective or non-feasible provision. 
  

					
	Petaluma, 7 APRIL 2010	 		 	Blomberg, 18-3-2010
			
	 /s/ Mark Baldassari
	 		 	 /s/ H. Friedrich

	Enphase Energy	 		 	Phoenix Contact GmbH & Co. KG
			
	 Mark Baldassari
	 		 	 H. Friedrich

	(Signer in printed letters)	 		 	(Signer in printed letters)
			
		 		 	Middletown, April 16, 2010
			
		 		 	 /s/ Mike Peppler

		 		 	Phoenix Contact Holdings, Inc.
			
		 		 	 Mike Peppler

		 		 	(Signer in printed letters)

 Annex 6 Products, Pricing and Delivery Conditions (Rev. 05.11.2010) 

1. CONTRACTUAL PRODUCTS and Pricing 
 The following prices will be used to determine cable assembly prices. All prices do not include packaging or shipping costs. 

 

					
	 a) Cable Connector and Splice Box
	  	Photo	  	 Price

	 Drop Cable Connector

with Grommet and wire organizer
	  	

 	  	 $[***]
 (only valid by buying an equivalent
 number of splice boxes)

			
	 Four-conductor Drop Cable AWG
 18/4
	  		  	$[***]/meter
			
	 Splice Box for Four-Conductor Cable;

without cable
	  	

 	  	 $[***]
 (only valid by buying an equivalent
 number of drop cables)

			
	 Splice Box for Five-Conductor Cable;

without cable
	  	

 	  	 $[***]
 (only valid by buying an equivalent
 number of drop cables)

			
	 Four-conductor Trunk Cable AWG
 12/4
	  		  	$[***]/meter
			
	 Five-Conductor Trunk Cable AWG
 12/5
	  		  	$[***]/meter
			
	 Temporary / shipping cap for splice box.

This will be applied to all splice boxes.

a) soft cap (not biodegradable)

b) polyamide cap (not biodegradable)
	  	

 	  	 $[***]
 $[***]

			
	 b) Accessory
	  	Photo	  	 Price

			
	 5 Pole Cable Terminator
	  	

 	  	$[***]
			
	 5 Pole Splice Kit for

Trunk Cable (present design status)
	  	TBD	  	$ [***]
			
	 Disconnect Tool / Handtool

a) color code 3000 (standard red)

b) color code 4004 (EE orange)
	  	

 	  	 $ [***]
 $ [***]

			
	 IP67 Sealing Cap for Trunk Cable Splice Boxes
	  	

 	  	$ [***]

 Enphase is obligated to buy all accessories for the installation of the CONTRACTUAL PRODUCTS from Phoenix Contact. This
liability will cease as soon as the relevant specified minimum purchase quantities as listed below has been reached or surpassed 
  

			
	 5 Pole Cable Terminator
	 	400,000 pcs.
	 5 Pole Splice Kit for Trunk Cable
	 	220,000 pcs.
	 Disconnect Tool / Handtool
	 	200,000 pcs.
	 IP67 Sealing Cap for Trunk Cable Splice Boxes
	 	200,000 pcs.

  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

 c) Sample cable assembly calculations: 

 
 Trunk cable AWG  12/4 or AWG  12/5 with n splice (total eff. cable length = n × L)

  

																									
	 Cable
	  	No. of
Splice boxes	 	  	eff. cable length
L [m]	 	  	total eff. cable
length [m]	 	  	Cable price
per m	 	  	price
Splice box	 	  	total price
Trunk cable	 
	 AWG
 12/4
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	$	 [***]	  	  	$	 [***]	  	  	$	 [***]	  
	 AWG
 12/5
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	$	 [***]	  	  	$	 [***]	  	  	$	 [***]	  

 2. Pricing Assumptions 
 The pricing in the table above was established using the following assumptions: 
  

	 	a)	cable cost of $[***] per meter for the [***] assembly (including [***]% handling charge) 

 

	 	b)	cable cost of $[***] per meter for the [***] assembly (including [***]% handling charge) 

 

	 	c)	cable cost of $[***] per meter for the [***] assembly (including [***]% handling charge) 

 

	 	d)	Exchange rate of $[***] US Dollars per Euro 

 At the time of production release and on Jan 1 and July 1 of each calendar year thereafter the price of the trunk and drop cable assemblies will be adjusted in the event that the total amount of the
cable cost (a-c) and exchange rate (d) cost changes to Phoenix Contact are greater than +/- 5% compared to the figures a) – d). Any changes either up or down that are less than that magnitude will be absorbed by Phoenix Contact.

 The price of the AC Drop cable will be reduced based upon the volume commitment reductions as listed below (non accumulative)

  

					
	 [***] to [***] sets
	  	 	[	***]$ 
	 [***] to [***] sets
	  	 	[	***]$ 
	 [***] to [***] sets
	  	 	[	***]$ 
	 [***] sets or greater sets
	  	 	[	***]$ 

 Phoenix Contact shall have the responsibility to select the cable vendor based upon drawing
specifications. This selection will be made by Phoenix Contact with respect to price, product quality and delivery performance. Phoenix Contact shall inform ENPHASE of its vendor selection once determined, however ENPHASE shall have the right to
reject such selection and replace it with a different vendor promptly in writing, due to better pricing and/or product quality. 
  

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS. 

 3. Delivery Terms 

FCA Poland or Germany facility (Incoterms 2000). 
 4. Forecast and raw material liability 
 ENPHASE accepted purchase orders
and forecast will constitute authorization for Phoenix Contact to procure inventory to manufacture the CONTRACTUAL PRODUCTS covered by such purchase orders and forecast based on the lead time of the raw materials required to build the CONTRACTUAL
PRODUCTS. Phoenix Contact will not make purchases of NCNR (non-cancellable, non-returnable) raw material inventory in excess of 90 days in lead time without the express written consent of ENPHASE. This written consent may take the form of a blanket
authorization for certain commodities or raw material for ease of management. 
 5. Delivery Performance 

On time delivery shall be measured and reported to ENPHASE on a monthly basis as measured against the original commitment date provided to
ENPHASE by Phoenix Contact. Orders shall be considered on time if they are shipped from one week earlier than the scheduled shipment date up to one day after the scheduled shipment date. On-time delivery shall be the sole responsibility of Phoenix
Contact except in cases where ENPHASE has requested delivery inside of mutually agreed lead times. In this instance, Phoenix Contact shall make all reasonable efforts to support the mutually agreed delivery times. The target for on-time delivery of
product shall be 95% on time. If Phoenix drops below this percentage for two months in a row or drops below 70% for one month, Phoenix Contact shall provide ENPHASE with a written corrective action plan. If, after 60 days from this written plan
delivery performance has not improved to the target, Phoenix Contact shall be considered in material breach of the contract. 

6. Payment terms 
 45 days net after date of invoice. 
 7. Currency 

US dollar ($)

8. Exchange rate 
 Invoicing shall be in US dollars. The exchange rates of US dollars into Euros shall be recalculated every six months according the following procedure: The basis for calculation the exchange rates with
the reference rate US dollar is formed by the average rate of the national currency in question during the past 6 months. The basis for this calculation shall be obtained from http://www.oanda.com/convert/classic. 

 9. Delivery Procedure 

In case delivery (especially but not limited to orders and order confirmation) and payment shall be done for ENPHASE by a Flextronics
Entity (this means company divisions), Flextronics entity shall be only acting as agent for ENPHASE. For the sake of clarification the individual Agreement shall only be concluded between Phoenix Contact and ENPHASE. 

 

					
	Phoenix Contact GmbH & Co. KG	 		 	Enphase Energy Inc.
			
	Blomberg, 12.11.2010	 		 	Petaluma, 7 Dec 10
		 		 	
	 

	 		 	 

	Helmut Friedrich	 		 	Paul Nahi
	Vice President Head of Business Unit Device
Connection Technology	 		 	CEO

			
	 Annex 7 Prototypes
	 	Cooperation Agreement
		 	AC Cabling System for Micro-Inverter

  

Prototypes 
 As mentioned in the
Cooperation Agreement Article 2.5 PREPRODUCTION PROTOTYPE shall mean any Prototype that is listed on the Roadmap/schedule Annex 7. For the Sake of clarification PREPRODUCTION PROTOTYPES are not CONTRACTUAL PRODUCTS, so that especially the
regulations of Quality Defects, Epidemic Failure and Limitation of Liability are not applicable. 
 As agreed in the Cooperation Agreement
ENPHASE will receive the PREPRODUCTION PROTOTYPES for testing purposes only. 
 The PREPRODUCTION PROTOTYPES have the restrictions as described
in Roadmap/schedule Annex 7. 
 The PREPRODUCTION PROTOTYPES are a pure laboratory version and thus a hardware that has only been partly tested
and is provided to ENPHASE for test purposes only. The PREPRODUCTION PROTOTYPES and the documentation of parts thereof shall not be used in life operations, because Phoenix Contact cannot warrant a faultless operation. The included information does
not absolve ENPHASE from their own responsibility of checking the suitability in each individual case, and may not be used untested nor be generalized. 
 ONLY IN CASE OF WILFUL ACT PHOENIX CONTACT IS LIABLE FOR DEFECTS; BUT NOT FOR CONSEQUENCES OF DEFECTS OR MALFUNCTION OR ANY DAMAGES CAUSED BY ENPHASE OR A THIRD PARTY BY USING OR DISTRIBUTING THE
PREPRODUCTION PROTOTYPES. IN NO CASE SHALL PHOENIX CONTACT BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, PUNITIVE, INDIRECT, OR SPECIAL DAMAGES OR LIABILITIES OF ANY KIND INVOLVING CLAIMS THAT WERE CAUSED BY THE USE OR THE IMPOSSIBILITY OF USE OF THE
PREPRODUCTION PTOTOTYPES INCLUDING BUT NOT LIMITED TO BUSINESS INTERRUPTION, LOST PROFITS, LOSS OF USE, LOSS OF OPPORTUNITIES OR LOSS OF DATA, UNDER ANY THEORY OF LIABILITY AND EVEN IF SUCH PARTY WERE ADVISED OF THE LIKELIHOOD OF SUCH DAMAGES OR
LIABILITIES. 
 ENPHASE agrees to use the provided hardware at its own risk and not in safety-related areas and/or for safety function purpose.

 Circulation of the provided PREPRODUCTION PROTOTYPES and documentation as a whole, in excerpts or as copy to a third party and the export to
other countries is forbidden. In case of infringement of the above obligations ENPHASE has the obligation to indemnify Phoenix Contact completely upon first request especially for any claims of a third party resulting from the operation of the
PREPRODUCTION PROTOTYPES. 
 ENPHASE agrees to return all “Sample B” PREPRODUCTION PROTOTYPES if requested by Phoenix Contact. Should
this occur Phoenix Contact will exchange those PREPRODUCTION PROTOTYPES with series products at no cost for ENPHASE. 
 For this Agreement, the
laws of Switzerland shall apply exclusively. The provisions of the Vienna UN Convention for Contracts on International Sale of Goods of 11 April 1980 (UN Purchase Law) are excluded. 
 All disputes arising from or in connection with this Agreement, including all questions regarding its creation, its validity and its termination, shall be finally decided according to the rules of
arbitration of the International Chamber of Commerce (ICC) by three (3) arbitrators pursuant to the mediation and arbitration body of the ICC. Each party shall appoint an 

			
	 Annex 7 Prototypes
	 	Cooperation Agreement
		 	AC Cabling System for Micro-Inverter

  

arbitrator for confirmation at the organisation in charge according to the applicable rules (appointment authority). The two appointed arbitrators shall appoint the third arbitrator within 30
days. In the event the two arbitrators cannot agree on a third arbitrator within this period, the organisation shall appoint him. If several defendants are involved in the legal dispute, the appointment of an arbitrator through the defendants has to
be coordinated among the defendants. In the event the defendants cannot agree on such a common appointment within the period determined by the organisation, the legal proceedings against them shall be separated. The place of jurisdiction shall be
Harrisburg, Pennsylvania, USA. Court language shall be English. 
 Enphase Request list Rev. 11 for Prototypes 

 

			
	Annex 7 Prototypes	 	Cooperation Agreement
		 	AC Cabling System for Micro-Inverter

  

 Phoenix Contact Pricelist for Prototypes 

 

															
	 Prototypes
	  	Prices soft-tools
30.07.2010	 	  	Prices per
Protos
30.07.2010	 	  	design
today
30.07.2010	  	SLA parts
30.07.2010	 
					
	 drop-connector with 4 pole cable (0,40 meter)
	  	$	[***]	  	  	$	[***]	  	  	

 	  	$	[***]	  
					
	 splicebox-connectors with four contacts and power-cable with 4 conductors (0,80 meter)
	  	$	[***]	  	  	$	[***]	  	  	

 	  	$	[***]	  
	 splicebox-connectors with four contacts and power-cable with 6 conductors (0,80 meter)
	  	  	  	

 	  	$	[***]	  
					
	 sealing cap splice-box
	  	$	[***]	  	  	$	[***]	  	  	

 	  	$	[***]	  
					
	 5 pole cable terminator. (new design)
	  	$	[***]	  	  	$	[***]	  	  	

 	  	$	[***]	  
					
	 4 pole repair kit for cable
	  	 	tbd	  	  	 	tbd	  	  	tbd	  	 	tbd	  
					
	 5 pole repair kit for cable
	  	 	tbd	  	  	 	tbd	  	  	tbd	  	 	tbd	  
					
	 hand tool for disconnection

splice box and drop connector
	  	 	not	  	  	 	not	  	  	

 	  	$	[***]	  
					
	 Packaging (in clarification with EE - PxC)
	  	 	tbd.	  	  	 	tbd.	  	  	tbd.	  	 	tbd	  

 Prototypes per air-freight to EE: 9,75 $/kg and shipping-time door to door 3 days. Shipping cost (air-freight) payed by
EE. 

  
 [***] = CERTAIN
INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

 Roadmap/Schedule 
 

 
 Comments: 
 EE Order to PC is released. 2D prototype drawings are signed by EE in CW29/10 
 Technical
and test-specification (UL/CSA) is released in CW29/10 
 Prototypes are not manufacturing according the series production process,
capacity of softtools = 1000 parts 
 No major changes of the preliminary design 

Only short functiontests, CSA-test needs [***] weeks. 
 Deatiled prototypes description written in the contract annex 7 
  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

			
	Annex 7 Prototypes	 	Cooperation Agreement
		 	AC Cabling System for Micro-Inverter

  

 Descriptions of “Model A” (Functional Prototypes non-IP 67) 

Functionality is ensured, safety of parts is tested and specifications requirements are not completely implemented. 

 

	 	•	 	 Intended use: EE marketing activities, internal analysis and testing 

 

	 	•	 	 Each Sample tested for electrical properties by PxC test laboratory (tested for continuity and rated current / voltage) 

 

	 	•	 	 No IP 67 protection 

  

	 	•	 	 Single parts are produced from soft tools 

  

	 	•	 	 Components are produced largely with production grade materials 

 

	 	•	 	 Color of connector housing is black 

  

	 	•	 	 Label on splice box and drop connector not usable for outdoor 

 

	 	•	 	 No compliance with the drawing tolerances, surface deviations possible (shrink and knock out marks) 

 

	 	•	 	 Trunkcable and Dropcable are potted but not tested to cable pull requirements. 

 

	 	•	 	 Soldering of conductores on leadframe 

  

	 	•	 	 Contacts tin plated 

  

	 	•	 	 Mating of connectors possible 

  

	 	•	 	 Drop cable without inverter interface grommet 

  

	 	•	 	 Drop cable ends are tinned flying leads. 

  

	 	•	 	 Five conductor trunkcable used for both 208 V and 240 V cables 

 

	 	•	 	 Trunk cable ends to be blunt cut 

  

	 	•	 	 Handtool produced by SLA 

  

	 	•	 	 Cables and parts will be shipped in standard boxes without instructions 

 

	 	•	 	 Marked with “Model A” and manufacture date on each label. 

 Descriptions of “Model B” (Functional Prototypes) 
 Functionality is ensured,
safety of parts is tested and specifications requirements should be complete implemented. 
  

	 	•	 	 Intended use: for primilary CSA submission 

  

	 	•	 	 Prototypes will not be fully tested per CSA testplan and without guarantee to meet the CSA-requirements from PxC. 

 

	 	•	 	 Note: fully tested prototypes require additional [***] weeks of test time 

 

	 	•	 	 IP 67 protection 

  

	 	•	 	 Components are produced from soft tools and include no time for tool optimizing. Technical problems in parts will be removed from PxC quickly.

  

	 	•	 	 Components are produced largely with production grade materials 

 

	 	•	 	 Color of connector housing is black 

  

	 	•	 	 Label on splice box and drop connector usable for outdoor. 

 

	 	•	 	 No compliance with the drawing tolerances, surface deviations possible (shrink and knock out marks) 

 

	 	•	 	 Welding of conductors on leadframe possible. 

  

	 	•	 	 Mating of connectors possible 

  

	 	•	 	 Drop cable includes inverter interface grommet and wire organizer when EE design freeze is in CW32 

 

	 	•	 	 Five conductor trunkcable used for both 208 V and 240 V cables 

 

	 	•	 	 Trunk cable ends to be blunt cut 

  

	 	•	 	 Handtool produced by SLA 

  
 [***] = CERTAIN
INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

	 	•	 	 Cables and parts will be shipped in standard boxes without instructions 

	 	•	 	 Marked with “Model B” and manufacture date on each label 

 

					
	Phoenix Contact GmbH & Co. KG	 		 	Enphase Energy Inc.
			
	Blomberg 19.10.2010	 		 	Petaluma, 7 Dec 10
			
	 

	 		 	 

	Helmut Friedrich	 		 	Paul Nahi
	 Vice President Head of Business Unit Device
 Connection Technology
	 		 	CEO

 Annex 8 Definition acc to Article 6 
 Overall Wiring Concept: 
  

			
	

	  	A flexible amount of wires

 Multiple connection points on the wire-set with a free choice of positions and amounts of connection points. 

Trunk and Drop wiring design: 
 [***] 
  
 [***] =
CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

 Annex 8 Definition acc to Article 6 
 Design Connector Interface in Combination with the Latching System: 

[***] 

The locking of the Trunk and Drop Connector system is achieved through two external Latching Pins on the Drop Connector and two Locking
Springs assembled inside the Splice Box. When the Drop Connector is fully mated to the Splice Box, the Locking Springs snap close over ledge features on the two latching pins, securing the Drop Connector in the proper mated position. 

 

					
	Phoenix Contact GmbH & Co. KG	 		 	Enphase Energy Inc.
			
	Blomberg, 19.10.2010	 		 	Petaluma, 7 Dec 10
			
	 

	 		 	 

	Helmut Friedrich	 		 	Paul Nahi
	 Vice President Head of Business Unit Device
 Connection Technology
	 		 	CEO

  
 [***] = CERTAIN INFORMATION ON THIS PAGE HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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