Document:

CREDIT AGREEMENT 

        THIS
CREDIT AGREEMENT (this “Agreement”) is entered into as of March 18, 2008, by and
between ORION ENERGY SYSTEMS, INC., a Wisconsin corporation and GREAT LAKES ENERGY
TECHNOLOGIES, LLC, a Wisconsin limited liability company (each individually, a
“Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”). Each
reference herein to “Borrower” shall mean each and every party, collectively and
individually, defined above as a Borrower. 

RECITALS 

        A.              Bank,
through its Wells Fargo Business Credit operating division, extended to
          Borrower certain credit facilities pursuant to the terms of a Credit and
          Security Agreement dated December 22, 2005 (as amended, the “WFBC
          Agreement”).  

        B.              Bank
and Borrower have now agreed that from and after the date of this           Agreement,
the credit facilities extended by Bank shall be extended by its           Commercial
Banking Group operating division, rather than by its Wells Fargo           Business
Credit operating division, and Bank and Borrower have agreed to such           credit on
the terms and conditions contained in this Agreement, which shall           terminate and
replace the WFBC Agreement. Any ancillary agreements between Bank           and Borrower
other than this Agreement shall continue in full force and effect           unless
explicitly replaced or terminated by Bank and Borrower in writing.  

        NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Bank and Borrower hereby agree that this Agreement shall terminate and
replace the WFBC Agreement, and further agree as follows: 

ARTICLE I 
CREDIT TERMS 

        SECTION
1.1.    LINE OF CREDIT. 

        (a)    Line
of Credit; Discretionary Increases to Line of Credit. Subject to the           terms
and conditions of this Agreement, Bank hereby agrees to make advances to
          Borrower from time to time up to and including August 31, 2010, not to exceed
at           any time the aggregate principal amount of TWENTY FIVE MILLION DOLLARS
          ($25,000,000.00)(“Line of Credit”), the proceeds of which shall be
          used for working capital or other general corporate purposes. Borrower’s
          obligation to repay advances under the Line of Credit shall be evidenced by a
          $25,000,000.00 promissory note dated the same date as this Agreement (“Line
          of Credit Note”), the terms of which are incorporated by reference. The
          Line of Credit Note shall be given as a replacement for, and not in
satisfaction           of, the Borrower’s $25,000,000 Revolving Note dated December
22, 2005.  

        Borrower
may request an increase in the Line of Credit by up to an additional TWENTY FIVE MILLION
DOLLARS ($25,000,000.00), provided that after giving effect to the requested increase, the
aggregate amount of the Line of Credit does not exceed $50,000,000.00. Borrower may
request such an increase once in the minimum amount of at least $1,000,000.00. Following
Borrower’s request, Bank may increase the amount of the Line of Credit, provided that
on or before the proposed date of the effectiveness of the increase, Borrower provides
Bank (i) pro-forma projections for the next four fiscal quarters, (ii) a current
compliance certificate executed by an officer of Borrower acceptable to Bank both showing
that Borrower is and will in the future be compliance with the terms and conditions of
this Agreement, and (iii) a replacement Line of Credit Note for the full amount of the
increased Line of Credit. The amount of the Line of Credit in excess of $25,000,000.00
is a discretionary Line of Credit, and Wells Fargo has no obligation to make an advance
even if no Event of Default has occurred under the terms of this Agreement. 

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        (b)    Limitation
on Borrowings. Outstanding borrowings under the Line of           Credit, whether
before or after any increase to the amount of the Line of           Credit, shall not at
any time exceed a borrowing base consisting of the           aggregate of (i) eighty
percent (80%) of Borrower’s Eligible Accounts, plus           (ii) fifty percent
(50%) of the value of Borrower’s Eligible Inventory or           $10,000,000,
whichever is less, and less (iii) an amount equal to the Borrowing           Base
Reserve.  

        The
foregoing shall be determined by Bank upon receipt and review of all collateral reports
required hereunder and such other documents and collateral information as Bank may from
time to time require. Borrower acknowledges that said borrowing base was established by
Bank with the understanding that, among other items, the aggregate of all returns,
rebates, discounts, credits and allowances for the immediately preceding three (3) months
at all times shall be less than five percent (5%) of Borrower’s gross sales for said
period. If such dilution of Borrower’s accounts for the immediately preceding three
(3) months at any time exceeds five percent (5%) of Borrower’s gross sales for said
period, or if there at any time exists any other matters, events, conditions or
contingencies which Bank reasonably believes may affect payment of any portion of
Borrower’s accounts, Bank, in its sole reasonable discretion, may reduce the
foregoing advance rate against eligible accounts receivable to a percentage appropriate to
reflect such additional dilution and/or establish additional reserves against
Borrower’s eligible accounts receivable. 

        “Borrowing
Base Reserve” means, as of any date of determination, an amount or a percent of a
specified category or item that Bank establishes in its sole reasonable discretion from
time to time to reduce availability under the borrowing base (i) to reflect without
limitation events, conditions, contingencies, litigation or other risks which affect the
assets, financial performance, business or prospects of Borrower, or the collateral
securing the indebtedness or its value, or the enforceability, perfection or priority of
Bank’s security interest in the collateral, or (ii) to reflect Bank’s judgment
that any information relating to Borrower, its financial condition or collateral, may be
incomplete, inaccurate or misleading in any material respect, or may have materially
changed in a way that may not otherwise be meaningfully measured by existing financial
covenants. 

        “Eligible
Accounts” means all unpaid Accounts of the Borrower arising from the sale or lease of
goods or the performance of services, net of any credits, but excluding any such Accounts
having any of the following characteristics: 

        (i)               That
portion of Accounts unpaid 90 days or more after the invoice date or,           if
the Bank in its reasonable discretion has determined that a particular dated
          Account may be eligible, that portion of such Account which is unpaid more than
          sixty (60) days past the stated due date or more than one hundred twenty (120)
          days past the invoice date;  

        (ii)               That
portion of Accounts related to goods or services with respect to which the
          Borrower has received notice of a claim or dispute, which are subject to a
claim           of offset or a contra account, or which reflect a reasonable reserve for
          warranty claims or returns;  

-2- 

        (iii)               That
portion of Accounts not yet earned by the final delivery of goods or           rendition
of services, as applicable, by the Borrower to the customer, including           progress
billings, and that portion of Accounts for which an invoice has not           been sent
to the applicable account debtor;  

        (iv)               Accounts
constituting (i) proceeds of copyrightable material unless such           copyrightable
material shall have been registered with the United States           Copyright Office, or
(ii) proceeds of patentable inventions unless such           patentable inventions have
been registered with the United States Patent and           Trademark Office;  

        (v)               Accounts
owed by any unit of government, whether foreign or domestic           (provided,
however, that there shall be included in Eligible Accounts           that portion of
Accounts owed by such units of government for which the Borrower           has provided
evidence satisfactory to the Bank that (A) the Bank has a           first priority
perfected security interest and (B) such Accounts may be           enforced by the
Bank directly against such unit of government under all           applicable laws);  

        (vi)               Accounts
owed by an account debtor located outside the United States which are           not (A) backed
by a bank letter of credit naming the Bank as beneficiary or           assigned to the
Bank, in the Bank’s possession or control, and with respect           to which a
control agreement concerning the letter-of-credit rights is in           effect, and
acceptable to the Bank in all respects, in its sole reasonable           discretion, or
(B) covered by a foreign receivables insurance policy           acceptable to the
Bank in its sole reasonable discretion;  

        (vii)               Accounts
owed by an account debtor that is insolvent, the subject of bankruptcy
          proceedings or has gone out of business;  

        (viii)               Accounts
owed by an Owner, Subsidiary, Affiliate, Officer or employee of the           Borrower or
by Northland Capital;  

        (ix)               Accounts
not subject to a duly perfected security interest in the Bank’s           favor or
which are subject to any Lien in favor of any Person other than the           Bank;  

        (x)               That
portion of Accounts that has been restructured, extended, amended or           modified;  

        (xi)               Accounts
owed by an account debtor, regardless of whether otherwise eligible, to           the
extent that the aggregate balance of such Accounts exceeds twenty five           percent
(25%) of the aggregate amount of all EligibleAccounts;  

        (xii)               Accounts
owed by an account debtor, regardless of whether otherwise eligible, if           twenty
percent (20%) or more of the total amount of Accounts due from such           debtor is
ineligible under clauses (i), (ii), or (x) above; and  

        (xiii)               Accounts,
or portions thereof, otherwise deemed ineligible by the Bank in its           sole
reasonable discretion.  

        “Eligible
Inventory” means all Inventory of the Borrower, valued at the lower of cost or market
in accordance with GAAP; but excluding any Inventory having any of the following
characteristics: 

        (i)               Inventory
that is: in-transit; located at any warehouse, job site or other           premises not
approved by the Bank in writing; not subject to a duly perfected           first priority
security interest in the Bank’s favor; subject to any lien           or encumbrance
that is subordinate to the Bank’s first priority security           interest;
covered by any negotiable or non-negotiable warehouse receipt, bill of           lading
or other document of title; on consignment from any Person; on           consignment to
any Person or subject to any bailment unless such consignee or           bailee has
executed an agreement with the Bank;  

-3- 

        (ii)               Supplies,
packaging, fabricated parts, sample Inventory, or           customer supplied
parts or Inventory;  

        (iii)              Work-in-process
Inventory;  

        (iv)               Inventory
that is damaged, defective, obsolete, slow moving or not currently           saleable in
the normal course of the Borrower’s operations, or the amount           of such
Inventory that has been reduced by shrinkage;  

        (v)               Inventory
that the Borrower has returned, has attempted to return, is in the           process of
returning or intends to return to the vendor thereof;  

        (vi)               Inventory
that is perishable or live;  

        (vii)               Inventory
manufactured by the Borrower pursuant to a license unless the           applicable
licensor has agreed in writing to permit the Bank to exercise its           rights and
remedies against such Inventory;  

        (viii)               Inventory
that is subject to a Lien in favor of any Person other than the Bank;           and  

        (ix)               Inventory
otherwise deemed ineligible by the Bank in its sole reasonable           discretion.  

        (c)    Letter
of Credit Subfeature. As a subfeature under the Line of Credit,           Bank agrees
from time to time during the term thereof to issue or cause an           affiliate to
issue standby letters of credit for the account of Borrower (each,           a “Letter
of Credit” and collectively, “Letters of Credit”);           provided
however, that the aggregate undrawn amount of all outstanding Letters           of Credit
shall not at any time exceed TEN MILLION DOLLARS ($10,000,000.00). The           form and
substance of each Letter of Credit shall be subject to approval by           Bank, in its
sole discretion. No Letter of Credit shall have an expiration date           subsequent
to the maturity date of the Line of Credit. The undrawn amount of all           Letters
of Credit shall be reserved under the Line of Credit and shall not be           available
for borrowings thereunder. Each Letter of Credit shall be subject to           the
additional terms and conditions of the Letter of Credit agreements,
          applications and any related documents required by Bank in connection with the
          issuance thereof. Each drawing paid under a Letter of Credit shall be deemed an
          advance under the Line of Credit and shall be repaid by Borrower in accordance
          with the terms and conditions of this Agreement applicable to such advances;
          provided however, that if advances under the Line of Credit are not available,
          for any reason, at the time any drawing is paid, then Borrower shall
immediately           pay to Bank the full amount drawn, together with interest thereon
from the date           such drawing is paid to the date such amount is fully repaid by
Borrower, at the           rate of interest applicable to advances under the Line of
Credit. In such event           Borrower agrees that Bank, in its sole discretion, may
debit any account           maintained by Borrower with Bank for the amount of any such
drawing.  

        (d)    Borrowing
and Repayment. Borrower may from time to time during the term           of the Line
of Credit borrow, partially or wholly repay its outstanding           borrowings, and
reborrow, subject to all of the limitations, terms and           conditions contained
herein or in the Line of Credit Note; provided however,           that the total
outstanding borrowings under the Line of Credit shall not at any           time exceed
the maximum principal amount available thereunder, as set forth           above.  

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        SECTION
1.2.    INTEREST/FEES. 

        (a)    Interest.
The outstanding principal balance of each credit subject hereto           shall bear
interest, and the amount of each drawing paid under the Standby           Letter of
Credit shall bear interest from the date such drawing is paid to the           date such
amount is fully repaid by Borrower, at the rate of interest set forth           in each
promissory note or other instrument or document executed in connection
          therewith..  

        (b)    Computation
and Payment. Interest shall be computed on the basis of a           360-day year,
actual days elapsed. Interest shall be payable at the times and           place set forth
in each promissory note or other instrument or document required           hereby.  

        (c)    Unused
Commitment Fee. Borrower shall pay to Bank a fee equal to twenty           hundredths
percent (0.20%) per annum (computed on the basis of a 360-day year,           actual days
elapsed) on the average daily unused amount of the Line of Credit,           which fee
shall be calculated on a quarterly basis by Bank and shall be due and           payable
by Borrower in arrears on the date of this agreement. In the event that
          Borrower increases the Line of Credit pursuant to the terms of this Agreement,
          then the fee shall be calculated on the full amount of the increased Line of
          Credit.  

        (d)    Letter
of Credit Fees. Borrower shall pay to Bank (i) fees upon the           issuance
of each Letter of Credit equal to one and one quarter percent (1.25%)           per annum
(computed on the basis of a 360-day year, actual days elapsed) of the           face
amount thereof, and (ii) fees upon the payment or negotiation of each
          drawing under any Letter of Credit and fees upon the occurrence of any other
          activity with respect to any Letter of Credit (including without limitation,
the           transfer, amendment or cancellation of any Letter of Credit) determined in
          accordance with Bank’s standard fees and charges then in effect for such
          activity.  

        (e)    Line
of Credit Termination Fee. Borrower shall pay Bank a fee equal to           1.0% of
the principal amount of the Line of Credit then in effect if Borrower           prepays
and terminates the Line of Credit prior to December 23, 2008, which fee           shall
be payable by Borrower prior to the release by Bank of its lien on the           Borrower’s
assets.  

        SECTION
1.3.    COLLECTION OF PAYMENTS. Borrower authorizes Bank to collect all interest due under
each credit subject hereto by charging Borrower’s deposit account number 4121228985
with Bank, or any other deposit account maintained by Borrower with Bank, for the full
amount thereof. Should there be insufficient funds in any such deposit account to pay all
such sums when due, the full amount of such deficiency shall be immediately due and
payable by Borrower. 

        SECTION
1.4.    COLLATERAL. As security for all indebtedness and other obligations of Borrower to
Bank, Borrower grants Bank a first lien security interest in all Borrower’s accounts
receivable and other rights to payment, general intangibles and inventory, and Borrower
also grants to Bank a security interests of second lien priority in all Borrower’s
equipment and fixtures. 

        All
of the foregoing shall be evidenced by and subject to the terms of such security
agreements, financing statements and other documents as Bank shall reasonably require, all
in form and substance satisfactory to Bank. Borrower shall pay to Bank immediately upon
demand the full amount of all charges, costs and expenses (to include fees paid to third
parties and all allocated costs of Bank personnel), expended or incurred by Bank in
connection with any of the foregoing security, including without limitation, filing and
recording fees and costs of appraisals and audits. 

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ARTICLE II
REPRESENTATIONS AND
WARRANTIES 

        Each
Borrower makes the following representations and warranties to Bank, which shall survive
the execution of this Agreement and continue in full force and effect until the full and
final payment, and satisfaction and discharge, of all obligations of each Borrower to Bank
subject to this Agreement. 

        SECTION
2.1.    LEGAL STATUS. 

        Borrower
Orion Energy Systems, Inc. is a corporation, duly organized and existing and in good
standing under the laws of Wisconsin, and is qualified or licensed to do business (and is
in good standing as a foreign corporation, if applicable) in all jurisdictions in which
such qualification or licensing is required or in which the failure to so qualify or to be
so licensed could have a material adverse effect on Borrower. 

        Borrower
Great Lakes Energy Technologies, LLC is a limited liability company, duly organized and
existing and in good standing under the laws of Wisconsin, and is qualified or licensed to
do business (and is in good standing as a foreign corporation, if applicable) in all
jurisdictions in which such qualification or licensing is required or in which the failure
to so qualify or to be so licensed could have a material adverse effect on Borrower. 

        SECTION
2.2.    AUTHORIZATION AND VALIDITY. This Agreement and each promissory note, contract,
instrument and other document required hereby or at any time hereafter delivered to Bank
in connection herewith (collectively, the “Loan Documents”) have been duly
authorized, and upon their execution and delivery in accordance with the provisions hereof
will constitute legal, valid and binding agreements and obligations of each Borrower,
enforceable in accordance with their respective terms. 

        SECTION
2.3.    NO VIOLATION. The execution, delivery and performance by each Borrower of the Loan
Documents and does not violate any provision of any law or regulation, or contravene any
provision of the Articles of Incorporation or By-Laws, or Articles of Organization or
Operating Agreement of, each Borrower, or result in any breach of or default under any
contract, obligation, indenture or other instrument to which either Borrower is a party or
by which either Borrower may be bound. 

        SECTION
2.4.    LITIGATION. There are no pending, or to the best of each Borrower’s knowledge,
threatened actions, claims, investigations, suits or proceedings by or before any
governmental authority, arbitrator, court or administrative agency which could have a
material adverse effect on the financial condition or operation of either Borrower, other
than those disclosed to Bank in writing prior to the date hereof, the disclosure of which
shall not be considered the waiver of any rights of Bank hereunder at any time in the
future. 

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        SECTION
2.5.     CORRECTNESS OF FINANCIAL STATEMENT. The annual financial statement of each Borrower
dated March 31, 2007, and all interim financial statements delivered to Bank since said
date, true copies of which have been delivered by each Borrower to Bank prior to the date
hereof, (a) are complete and correct and present fairly the financial condition of each
Borrower, (b) disclose all liabilities of each Borrower that are required to be reflected
or reserved against under generally accepted accounting principles, whether liquidated or
unliquidated, fixed or contingent, and (c) have been prepared in accordance with generally
accepted accounting principles consistently applied. Since the dates of such financial
statements there has been no material adverse change in the financial condition of each
Borrower, nor has either Borrower mortgaged, pledged, granted a security interest in or
otherwise encumbered any of its assets or properties except in favor of Bank or as
otherwise permitted by Bank in writing. 

        SECTION
2.6.    INCOME TAX RETURNS. Each Borrower has no knowledge of any pending assessments or
adjustments of its income tax payable with respect to any year. 

        SECTION
2.7.    NO SUBORDINATION. There is no agreement, indenture, contract or instrument to which
either Borrower is a party or by which either Borrower may be bound that requires the
subordination in right of payment of any of that Borrower’s obligations subject to
this Agreement to any other obligation of either Borrower. 

        SECTION
2.8.    PERMITS, FRANCHISES. Each Borrower possesses, and will hereafter possess, all
permits, consents, approvals, franchises and licenses required and rights to all
trademarks, trade names, patents, and fictitious names, if any, necessary to enable it to
conduct the business in which it is now engaged in compliance with applicable law. 

        SECTION
2.9.    ERISA. Each Borrower is in compliance in all material respects with all applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended or
recodified from time to time (“ERISA”); each Borrower has not violated any
provision of any defined employee pension benefit plan (as defined in ERISA) maintained or
contributed to by each Borrower (each, a “Plan”); no Reportable Event as defined
in ERISA has occurred and is continuing with respect to any Plan initiated by Borrower;
each Borrower has met its minimum funding requirements under ERISA with respect to each
Plan; and each Plan will be able to fulfill its benefit obligations as they come due in
accordance with the Plan documents and under generally accepted accounting principles. 

        SECTION
2.10.    OTHER OBLIGATIONS. Each Borrower is not in default on any obligation for borrowed
money, any purchase money obligation or any other material lease, commitment, contract,
instrument or obligation. 

        SECTION
2.11.    ENVIRONMENTAL MATTERS. Except as disclosed by either Borrower to Bank in writing
prior to the date hereof, each Borrower is in compliance in all material respects with all
applicable federal or state environmental, hazardous waste, health and safety statutes,
and any rules or regulations adopted pursuant thereto, which govern or affect any of that
Borrower’s operations and/or properties, including without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, the
Superfund Amendments and Reauthorization Act of 1986, the Federal Resource Conservation
and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same
may be amended, modified or supplemented from time to time. None of the operations of
either Borrower is the subject of any federal or state investigation evaluating whether
any remedial action involving a material expenditure is needed to respond to a release of
any toxic or hazardous waste or substance into the environment. Each Borrower has no
material contingent liability in connection with any release of any toxic or hazardous
waste or substance into the environment. 

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ARTICLE III 
CONDITIONS 

        SECTION
3.1.    CONDITIONS OF INITIAL EXTENSION OF CREDIT. The obligation of Bank to extend any
credit contemplated by this Agreement is subject to the fulfillment to Bank’s
satisfaction of all of the following conditions: 

        (a)    Approval
of Bank Counsel. All legal matters incidental to the extension           of credit by
Bank shall be satisfactory to Bank’s counsel.  

        (b)    Documentation.
Bank shall have received, in form and substance           satisfactory to Bank, each of
the following, duly executed:  

	 	(i) 	This
Agreement and each promissory note or other instrument or document required
          hereby.  

	 	(ii) 	Certificate
of Incumbency.  

	 	(iii) 	Corporate
Resolution: Borrowing. 

	 	(iv) 	Limited
Liability Co. Cert: Borrowing.  

	 	(v) 	Security
Agreement: Equipment & Fixtures.  

	 	(vi) 	Security
Agreement: Continuing Rights to Payments and Inventory.  

	 	(vii) 	Intercreditor
Agreement dated December 23, 2005 entered into with Hometown Bank.  

	 	(viii) 	Security
Interest Subordination Agreement dated December 22, 2005 entered into           with City
of Manitowoc, Wisconsin.  

	 	(ix) 	Copies
of all policies of insurance of every kind and description.  

	 	(x) 	Such
other documents as Bank may require under any other Section of this           Agreement.  

        (c)    Financial
Condition. There shall have been no material adverse change, as           determined
by Bank, in the financial condition or business of Borrower, nor any           material
decline, as determined by Bank, in the market value of any collateral           required
hereunder or a substantial or material portion of the assets of           Borrower.  

        (d)    Insurance.
Borrower shall have delivered to Bank evidence of insurance           coverage on all
Borrower’s property, in form, substance, amounts, covering           risks and
issued by companies satisfactory to Bank, and where required by Bank,           with loss
payable endorsements in favor of Bank.  

        SECTION
3.2.    CONDITIONS OF EACH EXTENSION OF CREDIT. The obligation of Bank to make each extension
of credit requested by Borrower hereunder shall be subject to the fulfillment to
Bank’s satisfaction of each of the following conditions: 

        (a)    Compliance.
The representations and warranties contained herein and in           each of the other
Loan Documents shall be true on and as of the date of the           signing of this
Agreement and on the date of each extension of credit by Bank           pursuant hereto,
with the same effect as though such representations and           warranties had been
made on and as of each such date, and on each such date, no           Event of Default as
defined herein, and no condition, event or act which with           the giving of notice
or the passage of time or both would constitute such an           Event of Default, shall
have occurred and be continuing or shall exist.  

-8- 

        (b)    Documentation.
Bank shall have received all additional documents which           may be required in
connection with such extension of credit.  

        (c)    Additional
Letter of Credit Documentation. Prior to the issuance of each           Letter of
Credit, Bank shall have received a Letter of Credit Agreement,           properly
completed and duly executed by borrower.  

ARTICLE IV 
AFFIRMATIVE COVENANTS 

        Each
Borrower covenants that so long as Bank remains committed to extend credit to Borrower
pursuant hereto, or any liabilities (whether direct or contingent, liquidated or
unliquidated) of Borrower to Bank under any of the Loan Documents remain outstanding, and
until payment in full of all obligations of Borrower subject hereto, each Borrower shall,
unless Bank otherwise consents in writing: 

        SECTION
4.1. PUNCTUAL PAYMENTS. Punctually pay all principal, interest, fees or other liabilities
due under any of the Loan Documents at the times and place and in the manner specified
therein, and immediately upon demand by Bank, the amount by which the outstanding
principal balance of any credit subject hereto at any time exceeds any limitation on
borrowings applicable thereto. 

        SECTION
4.2.    ACCOUNTING RECORDS. Maintain adequate books and records in accordance with generally
accepted accounting principles consistently applied, and permit any representative of
Bank, at any reasonable time, to inspect, audit and examine such books and records, to
make copies of the same, and to inspect the properties of Borrower. 

        SECTION
4.3.    FINANCIAL STATEMENTS AND FINANCIAL INFORMATION. Provide to Bank all of the following,
in form and detail satisfactory to Bank: 

        (a)               not
later than 120 days after and as of the end of each fiscal year, an audited
          consolidated financial statement of Borrower, prepared by a certified public
          accountant acceptable to bank, to include balance sheet and income statement;  

        (b)              not
later than 30 days after and as of the end of each month, a financial           statement
of Borrower, prepared by Borrower, to include balance sheet and income
          statement;  

        (c)              not
later than 20 days after and as of the end of each month, a borrowing base
          certificate, an inventory collateral report, an aged listing of accounts
          receivable and accounts payable, and a reconciliation of accounts, and to be
          delivered each January and July if there were at any time borrowings in the
          preceding six months, a list of the names and addresses of all Borrower’s
          account debtors;  

        (d)              not
later than each March 31 annual projections, to include balance sheet,           income
statement and statement of cash flows;  

        (e)              contemporaneously
with each annual and monthly financial statement of Borrower           required hereby, a
certificate of an authorized officer, manager or member of           Borrower that said
financial statements are accurate and that there exists no           Event of Default nor
any condition, act or event which with the giving of notice           or the passage of
time or both would constitute an Event of Default;  

-9- 

        (f)              Notice
of any litigation or other adversarial proceedings in any court or other           forum
where the amount being claimed against Borrower is in excess of           $500,000.00,
and promptly upon receipt, and in any event no more than ten (10)           days after
filing or receipt, copies of all pleadings, notices, court papers, or           motions
concerning a dispositive issue filed by any party with respect to such
          litigation or other adversarial proceedings, and copies of any order or
judgment           filed by the court, with respect to such litigation or proceedings,
together           with any non-privileged discovery materials that Bank in its sole
discretion           deems appropriate for its review..  

        (g)              Notice
of any reservation of rights or of any refusal to cover any claims made           against
Borrower or any officers or employees of Borrower under any policies of
          insurance.  

        (h)              from
time to time such other information as Bank may reasonably request.  

        SECTION
4.4.    COMPLIANCE. Preserve and maintain all licenses, permits, governmental approvals,
rights, privileges and franchises necessary for the conduct of its business; and comply
with the provisions of all documents pursuant to which Borrower is organized and/or which
govern Borrower’s continued existence and with the requirements of all laws, rules,
regulations and orders of any governmental authority applicable to Borrower and/or its
business. 

        SECTION
4.5.    INSURANCE. Maintain and keep in force, for each business in which Borrower is
engaged, insurance of the types and in amounts customarily carried in similar lines of
business, including but not limited to fire, extended coverage, public liability, flood,
property damage and workers’ compensation, with all such insurance in amounts
satisfactory to Bank, and deliver to Bank from time to time at Bank’s request
schedules setting forth all insurance then in effect. Such insurance may be obtained from
an insurer or through an insurance agent of Borrower’s choice, provided that any
insurer chosen by Borrower is acceptable to Bank on such reasonable grounds as may be
permitted under applicable law. 

        SECTION
4.6.    FACILITIES. Keep all properties useful or necessary to Borrower’s business in
good repair and condition, and from time to time make necessary repairs, renewals and
replacements thereto so that such properties shall be fully and efficiently preserved and
maintained. 

        SECTION
4.7.    TAXES AND OTHER LIABILITIES. Pay and discharge when due any and all indebtedness,
obligations, assessments and taxes, both real or personal, including without limitation
federal and state income taxes and state and local property taxes and assessments, except
(a) such as Borrower may in good faith contest or as to which a bona fide dispute may
arise, and (b) for which Borrower has made provision, to Bank’s satisfaction, for
eventual payment thereof in the event Borrower is obligated to make such payment. 

        SECTION
4.8.    LITIGATION. Promptly give notice in writing to Bank of any litigation pending or
threatened against Borrower. 

        SECTION
4.9.    FINANCIAL CONDITION. Maintain Borrower’s financial condition as follows using
generally accepted accounting principles consistently applied and used consistently with
prior practices (except to the extent modified by the definitions herein), with compliance
determined commencing with Borrower’s financial statements for the period ending
December 31, 2007: 

-10- 

        (a)              Total
Liabilities divided by Tangible Net Worth not greater than 1.0 to 1.0 at           each
fiscal quarter end, with “Total Liabilities” defined as the           aggregate
of current liabilities and non-current liabilities less subordinated           debt, and
with “Tangible Net Worth” defined as the aggregate of total
          stockholders’ and members’ equity plus subordinated debt less any
          intangible assets.  

        (b)              Net
income after taxes not less than $1.00 on a rolling 4-quarter basis,           determined
as of each fiscal quarter end.  

        (c)              Fixed
Charge Coverage Ratio not less than 2.00 to 1.0 as of each fiscal quarter           end,
determined on a rolling 4-quarter basis, with “Fixed Charge Coverage           Ratio” defined
as the aggregate of net profit after taxes plus depreciation           expense,
amortization expense, cash capital contributions and increases in           subordinated
debt minus dividends, distributions and decreases in subordinated           debt, divided
by the aggregate of the current maturity of long-term debt and           capitalized
lease payments.  

        SECTION
4.10.    NOTICE TO BANK. Promptly (but in no event more than five (5) days after the
occurrence of each such event or matter) give written notice to Bank in reasonable detail
of: (a) the occurrence of any Event of Default, or any condition, event or act which
with the giving of notice or the passage of time or both would constitute an Event of
Default; (b) any change in the name or the organizational structure of Borrower;
(c) the occurrence and nature of any Reportable Event or Prohibited Transaction, each
as defined in ERISA, or any funding deficiency with respect to any Plan; or (d) any
termination or cancellation of any insurance policy which Borrower is required to
maintain, or any uninsured or partially uninsured loss through liability or property
damage, or through fire, theft or any other cause affecting Borrower’s property. 

ARTICLE V 
NEGATIVE COVENANTS 

        Borrower
further covenants that so long as Bank remains committed to extend credit to Borrower
pursuant hereto, or any liabilities (whether direct or contingent, liquidated or
unliquidated) of Borrower to Bank under any of the Loan Documents remain outstanding, and
until payment in full of all obligations of Borrower subject hereto, Borrower will not
without Bank’s prior written consent: 

        SECTION
5.1.    USE OF FUNDS.  Use any of the proceeds of any credit extended
hereunder except for the purposes stated in Article I hereof.  

        SECTION
5.2.    CAPITAL EXPENDITURES. Make any additional investment in fixed assets in any fiscal
year in an amount in excess of $5,000,000, or, with respect to capital expenditures used
for the Borrower’s tech center expansion on Mirro Drive in Manitowoc, Wisconsin, in
an amount in excess of $8,500,000. 

        SECTION
5.3.    LEASE EXPENDITURES.  Incur operating lease expense in any
fiscal year in an amount in excess of $2,500,000. 

        SECTION
5.4.    OTHER INDEBTEDNESS. Create, incur, assume or permit to exist any indebtedness or
liabilities resulting from borrowings, loans or advances, whether secured or unsecured,
matured or unmatured, liquidated or unliquidated, joint or several, except (a) the
liabilities of Borrower to Bank, (b) indebtedness incurred for the purchase of equipment
in an amount not in excess of $2,000,000, and (c) any other liabilities of Borrower
existing as of, and disclosed to Bank prior to, the date hereof. 

-11- 

        SECTION
5.5.    MERGER, CONSOLIDATION, TRANSFER OF ASSETS. Merge into or consolidate with any other
entity; make any substantial change in the nature of Borrower’s business as conducted
as of the date hereof; acquire all or substantially all of the assets of any other entity,
except up to $25,000,000 in cash or stock per annum, assuming Borrower is currently not in
default and the acquisition does not cause a default on a historical or pro-forma basis
with the covenants established. The limit shall be reduced to $10,000,000 if the
contemplated acquisition requires the use of the Revolving Line of Credit to complete the
acquisition; nor sell, lease, transfer or otherwise dispose of all or a substantial or
material portion of Borrower’s assets except in the ordinary course of its business. 

        SECTION
5.6.    GUARANTIES. Guarantee or become liable in any way as surety, endorser (other than as
endorser of negotiable instruments for deposit or collection in the ordinary course of
business), accommodation endorser or otherwise for, nor pledge or hypothecate any assets
of Borrower as security for, any liabilities or obligations of any other person or entity
in an amount in excess of $250,000, except any of the foregoing in favor of Bank. 

        SECTION
5.7.    LOANS, ADVANCES, INVESTMENTS. Make any loans or advances to or investments in any
person or entity that is otherwise permitted under applicable law, in an amount not in
excess of $250,000, except any of the foregoing existing as of, and disclosed to Bank
prior to, the date hereof. 

        SECTION
5.8.    DIVIDENDS, DISTRIBUTIONS. Declare or pay any dividend or distribution either in cash,
stock or any other property on Borrower’s stock now or hereafter outstanding, nor
redeem, retire, repurchase or otherwise acquire any shares of any class of Borrower’s
stock now or hereafter outstanding. 

        SECTION
5.9.    DISTRIBUTIONS. Declare or pay any distributions to its members either in cash or any
other property, nor redeem, retire, repurchase or otherwise acquire any membership
interest in Borrower. 

        SECTION
5.10.    PLEDGE OF ASSETS. Mortgage, pledge, grant or permit to exist a security interest in,
or lien upon, all or any portion of Borrower’s assets now owned or hereafter
acquired, except any of the foregoing in favor of Bank or which is existing as of, and
disclosed to Bank in writing prior to, the date hereof, other than security interests or
liens granted for purposes of securing purchase money indebtedness otherwise permitted
under the terms of this Agreement. 

ARTICLE VI 
EVENTS OF DEFAULT 

        SECTION
6.1.    The occurrence of any of the following shall constitute an “Event of
Default” under this Agreement: 

        (a)               Borrower
shall fail to pay when due any principal, interest, fees or other           amounts
payable under any of the Loan Documents.  

-12- 

        (b)              Any
financial statement or certificate furnished to Bank in connection with, or           any
representation or warranty made by Borrower or any other party under this
          Agreement or any other Loan Document shall prove to be incorrect, false or
          misleading in any material respect when furnished or made.  

        (c)              Any
default in the performance of or compliance with any obligation, agreement           or
other provision contained herein or in any other Loan Document (other than
          those referred to in subsections (a) and (b) above), and with respect to any
          such default which by its nature can be cured, such default shall continue for
a           period of twenty (20) days from its occurrence.  

        (d)              Any
default in the payment or performance of any obligation, or any defined           event
of default, under the terms of any contract or instrument (other than any           of
the Loan Documents) pursuant to which Borrower, any guarantor hereunder or           any
general partner or joint venturer in Borrower if a partnership or joint           venture
(with each such guarantor, general partner and/or joint venturer           referred to
herein as a “Third Party Obligor”) has incurred any debt           or other
liability to any person or entity, including Bank.  

        (e)              The
filing of a notice of judgment lien against Borrower or any Third Party           Obligor
in an amount in excess of $500,000; or the recording of any abstract of
          judgment against Borrower or any Third Party Obligor in any county in which
          Borrower or such Third Party Obligor has an interest in real property in an
          amount in excess of $500,000; or the service of a notice of levy and/or of a
          writ of attachment or execution, or other like process, against the assets of
          Borrower or any Third Party Obligor in an amount in excess of $500,000; or the
          entry of a judgment against Borrower or any Third Party Obligor in an amount in
          excess of $500,000.  

        (f)              Borrower
or any Third Party Obligor shall become insolvent, or shall suffer or           consent
to or apply for the appointment of a receiver, trustee, custodian or           liquidator
of itself or any of its property, or shall generally fail to pay its           debts as
they become due, or shall make a general assignment for the benefit of
          creditors; Borrower or any Third Party Obligor shall file a voluntary petition
          in bankruptcy, or seeking reorganization, in order to effect a plan or other
          arrangement with creditors or any other relief under the Bankruptcy Reform Act,
          Title 11 of the United States Code, as amended or recodified from time to time
          (“Bankruptcy Code”), or under any state or federal law granting
relief           to debtors, whether now or hereafter in effect; or any involuntary
petition or           proceeding pursuant to the Bankruptcy Code or any other applicable
state or           federal law relating to bankruptcy, reorganization or other relief for
debtors           is filed or commenced against Borrower or any Third Party Obligor, or
Borrower           or any Third Party Obligor shall file an answer admitting the
jurisdiction of           the court and the material allegations of any involuntary
petition; or Borrower           or any Third Party Obligor shall be adjudicated a
bankrupt, or an order for           relief shall be entered against Borrower or any Third
Party Obligor by any court           of competent jurisdiction under the Bankruptcy Code
or any other applicable           state or federal law relating to bankruptcy,
reorganization or other relief for           debtors.  

        (h)               The
death or incapacity of Borrower or any Third Party Obligor if an individual.
          The dissolution or liquidation of Borrower or any Third Party Obligor if a
          corporation, partnership, joint venture or other type of entity; or Borrower or
          any such Third Party Obligor, or any of its directors, stockholders or members,
          shall take action seeking to effect the dissolution or liquidation of Borrower
          or such Third Party Obligor.  

        (i)               Any
change in ownership of an aggregate of fifty percent (50%) or more of the
          common stock of equity in Borrower.  

-13- 

        SECTION
6.2.    REMEDIES. Upon the occurrence of any Event of Default: (a) all indebtedness of
Borrower under each of the Loan Documents, any term thereof to the contrary
notwithstanding, shall at Bank’s option and without notice become immediately due and
payable without presentment, demand, protest or notice of dishonor, all of which are
hereby expressly waived by Borrower; (b) the obligation, if any, of Bank to extend
any further credit under any of the Loan Documents shall immediately cease and terminate;
and (c) Bank shall have all rights, powers and remedies available under each of the
Loan Documents, or accorded by law, including without limitation the right to resort to
any or all security for any credit subject hereto and to exercise any or all of the rights
of a beneficiary or secured party pursuant to applicable law. All rights, powers and
remedies of Bank may be exercised at any time by Bank and from time to time after the
occurrence of an Event of Default, are cumulative and not exclusive, and shall be in
addition to any other rights, powers or remedies provided by law or equity. 

ARTICLE VII 
MISCELLANEOUS 

        SECTION
7.1.    NO WAIVER. No delay, failure or discontinuance of Bank in exercising any right, power
or remedy under any of the Loan Documents shall affect or operate as a waiver of such
right, power or remedy; nor shall any single or partial exercise of any such right, power
or remedy preclude, waive or otherwise affect any other or further exercise thereof or the
exercise of any other right, power or remedy. Any waiver, permit, consent or approval of
any kind by Bank of any breach of or default under any of the Loan Documents must be in
writing and shall be effective only to the extent set forth in such writing. 

        SECTION
7.2.    NOTICES. All notices, requests and demands which any party is required or may desire
to give to any other party under any provision of this Agreement must be in writing
delivered to each party at the following address: 

	 	     BORROWER: 	ORION
ENERGY SYSTEMS, INC.                          
1204 PILGRIM ROAD
                         
PLYMOUTH, WISCONSIN 53073

	 	     BORROWER: 	GREAT
LAKES ENERGY TECHNOLOGIES, LLC                          
2001 MIRRO DRIVE
                         
MANITOWOC, WI 54220

	 	     BANK: 	WELLS
FARGO BANK, NATIONAL ASSOCIATION                          
100 EAST WISCONSIN AVENUE,
SUITE#1400                          
MILWAUKEE, WI 53202

or to such other address as any party
may designate by written notice to all other parties. Each such notice, request and demand
shall be deemed given or made as follows: (a) if sent by hand delivery, upon
delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3)
days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent
by telecopy, upon receipt. 

        SECTION
7.3.    COSTS, EXPENSES AND ATTORNEYS’ FEES. Borrower shall pay to Bank immediately upon
demand the full amount of all payments, advances, charges, costs and expenses, including
reasonable attorneys’ fees (to include outside counsel fees and all allocated costs
of Bank’s in-house counsel), expended or incurred by Bank in connection with
(a) the negotiation and preparation of this Agreement and the other Loan Documents,
Bank’s continued administration hereof and thereof, and the preparation of any
amendments and waivers hereto and thereto, (b) the enforcement of Bank’s rights
and/or the collection of any amounts which become due to Bank under any of the Loan
Documents, and (c) the prosecution or defense of any action in any way related to any
of the Loan Documents, including without limitation, any action for declaratory relief,
whether incurred at the trial or appellate level, in an arbitration proceeding or
otherwise, and including any of the foregoing incurred in connection with any bankruptcy
proceeding (including without limitation, any adversary proceeding, contested matter or
motion brought by Bank or any other person) relating to Borrower or any other person or
entity. 

-14- 

        SECTION
7.4.    SUCCESSORS, ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit
of the heirs, executors, administrators, legal representatives, successors and assigns of
the parties; provided however, that Borrower may not assign or transfer its interests or
rights hereunder without Bank’s prior written consent. Bank reserves the right to
sell, assign, transfer, negotiate or grant participations in all or any part of, or any
interest in, Bank’s rights and benefits under each of the Loan Documents. In
connection therewith, Bank may disclose all documents and information which Bank now has
or may hereafter acquire relating to any credit subject hereto, Borrower or its business,
or any collateral required hereunder. 

        SECTION
7.5.    ENTIRE AGREEMENT; AMENDMENT. This Agreement and the other Loan Documents constitute
the entire agreement between Borrower and Bank with respect to each credit subject hereto
and supersede all prior negotiations, communications, discussions and correspondence
concerning the subject matter hereof. This Agreement may be amended or modified only in
writing signed by each party hereto. 

        SECTION
7.6.    NO THIRD PARTY BENEFICIARIES. This Agreement is made and entered into for the sole
protection and benefit of the parties hereto and their respective permitted successors and
assigns, and no other person or entity shall be a third party beneficiary of, or have any
direct or indirect cause of action or claim in connection with, this Agreement or any
other of the Loan Documents to which it is not a party. 

        SECTION
7.7.    TIME.  Time is of the essence of each and every provision of
this Agreement and each other of the Loan Documents.  

        SECTION
7.8.    SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be prohibited by
or invalid under applicable law, such provision shall be ineffective only to the extent of
such prohibition or invalidity without invalidating the remainder of such provision or any
remaining provisions of this Agreement. 

        SECTION
7.9.    COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of
which when executed and delivered shall be deemed to be an original, and all of which when
taken together shall constitute one and the same Agreement. 

        SECTION
7.10.    GOVERNING LAW.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin.  

        SECTION
7.11.    BUSINESS PURPOSE. Borrower represents and warrants that each credit subject hereto
is for a business, commercial, investment, or other similar purpose and not primarily for
a personal, family or household use. 

-15- 

        SECTION
7.12.    ARBITRATION. 

        (a)    Arbitration.
The parties hereto agree, upon demand by any party, to           submit to binding
arbitration all claims, disputes and controversies between or           among them (and
their respective employees, officers, directors, attorneys, and           other agents),
whether in tort, contract or otherwise in any way arising out of           or relating to
(i) any credit subject hereto, or any of the Loan Documents, and           their
negotiation, execution, collateralization, administration, repayment,
          modification, extension, substitution, formation, inducement, enforcement,
          default or termination; or (ii) requests for additional credit.  

        (b)    Governing
Rules. Any arbitration proceeding will (i) proceed in a           location in
Wisconsin selected by the American Arbitration Association           (“AAA”);
(ii) be governed by the Federal Arbitration Act (Title 9 of           the United States
Code), notwithstanding any conflicting choice of law provision           in any of the
documents between the parties; and (iii) be conducted by the AAA,           or such other
administrator as the parties shall mutually agree upon, in           accordance with the
AAA’s commercial dispute resolution procedures, unless           the claim or
counterclaim is at least $1,000,000.00 exclusive of claimed           interest,
arbitration fees and costs in which case the arbitration shall be           conducted in
accordance with the AAA’s optional procedures for large,           complex
commercial disputes (the commercial dispute resolution procedures or the
          optional procedures for large, complex commercial disputes to be referred to
          herein as applicable, as the “Rules”). If there is any inconsistency
          between the terms hereof and the Rules, the terms and procedures set forth
          herein shall control. Any party who fails or refuses to submit to arbitration
          following a demand by any other party shall bear all costs and expenses
incurred           by such other party in compelling arbitration of any dispute. Nothing
contained           herein shall be deemed to be a waiver by any party that is a bank of
the           protections afforded to it under 12 U.S.C. §91 or any similar
applicable           state law.  

        (c)    No
Waiver of Provisional Remedies, Self-Help and Foreclosure. The           arbitration
requirement does not limit the right of any party to (i) foreclose           against real
or personal property collateral; (ii) exercise self-help remedies           relating to
collateral or proceeds of collateral such as setoff or repossession;           or (iii)
obtain provisional or ancillary remedies such as replevin, injunctive           relief,
attachment or the appointment of a receiver, before during or after the
          pendency of any arbitration proceeding. This exclusion does not constitute a
          waiver of the right or obligation of any party to submit any dispute to
          arbitration or reference hereunder, including those arising from the exercise
of           the actions detailed in sections (i), (ii) and (iii) of this paragraph.  

        (d)    Arbitrator
Qualifications and Powers. Any arbitration proceeding in which           the amount
in controversy is $5,000,000.00 or less will be decided by a single           arbitrator
selected according to the Rules, and who shall not render an award of           greater
than $5,000,000.00. Any dispute in which the amount in controversy           exceeds
$5,000,000.00 shall be decided by majority vote of a panel of three
          arbitrators; provided however, that all three arbitrators must actively
          participate in all hearings and deliberations. The arbitrator will be a neutral
          attorney licensed in the State of Wisconsin or a neutral retired judge of the
          state or federal judiciary of Wisconsin, in either case with a minimum of ten
          years experience in the substantive law applicable to the subject matter of the
          dispute to be arbitrated. The arbitrator will determine whether or not an issue
          is arbitratable and will give effect to the statutes of limitation in
          determining any claim. In any arbitration proceeding the arbitrator will decide
          (by documents only or with a hearing at the arbitrator’s discretion) any
          pre-hearing motions which are similar to motions to dismiss for failure to
state           a claim or motions for summary adjudication. The arbitrator shall resolve
all           disputes in accordance with the substantive law of Wisconsin and may grant
any           remedy or relief that a court of such state could order or grant within the
          scope hereof and such ancillary relief as is necessary to make effective any
          award. The arbitrator shall also have the power to award recovery of all costs
          and fees, to impose sanctions and to take such other action as the arbitrator
          deems necessary to the same extent a judge could pursuant to the Federal Rules
          of Civil Procedure, the Wisconsin Rules of Civil Procedure or other applicable
          law. Judgment upon the award rendered by the arbitrator may be entered in any
          court having jurisdiction. The institution and maintenance of an action for
          judicial relief or pursuit of a provisional or ancillary remedy shall not
          constitute a waiver of the right of any party, including the plaintiff, to
          submit the controversy or claim to arbitration if any other party contests such
          action for judicial relief.  

-16- 

        (e)    Discovery.
In any arbitration proceeding, discovery will be permitted in           accordance with
the Rules. All discovery shall be expressly limited to matters           directly
relevant to the dispute being arbitrated and must be completed no later           than 20
days before the hearing date. Any requests for an extension of the           discovery
periods, or any discovery disputes, will be subject to final           determination by
the arbitrator upon a showing that the request for discovery is           essential for
the party’s presentation and that no alternative means for           obtaining
information is available.  

        (f)    Class
Proceedings and Consolidations. No party hereto shall be entitled           to join
or consolidate disputes by or against others in any arbitration, except           parties
who have executed any Loan Document, or to include in any arbitration           any
dispute as a representative or member of a class, or to act in any           arbitration
in the interest of the general public or in a private attorney           general
capacity.  

        (g)    Payment
Of Arbitration Costs And Fees. The arbitrator shall           award all
costs and expenses of the arbitration proceeding.  

        (h)    Miscellaneous.
To the maximum extent practicable, the AAA, the           arbitrators and the parties
shall take all action required to conclude any           arbitration proceeding within
180 days of the filing of the dispute with the           AAA. No arbitrator or other
party to an arbitration proceeding may disclose the           existence, content or
results thereof, except for disclosures of information by           a party required in
the ordinary course of its business or by applicable law or           regulation. If more
than one agreement for arbitration by or between the parties           potentially
applies to a dispute, the arbitration provision most directly           related to the
Loan Documents or the subject matter of the dispute shall           control. This
arbitration provision shall survive termination, amendment or           expiration of any
of the Loan Documents or any relationship between the parties.  

-17- 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
day and year first written above. 

		WELLS FARGO BANK,
	ORION ENERGY SYSTEMS, INC	NATIONAL ASSOCIATION
	
By:  /s/ Neal R. Verfuerth	By:  /s/ Thomas J. Fameree
	        Neal R. Verfuerth, President/	        Thomas J. Fameree
	        Chief Executive Officer	        Vice President
	
GREAT LAKES ENERGY
	TECHNOLOGIES, LLC
	
By:  /s/ Neal R. Verfuerth
	        Neal R. Verfuerth
	        Manager

-18-REVOLVING LINE OF
CREDIT NOTE 

	$25,000,000.00	Milwaukee, Wisconsin 
	 	March 18, 2008 

        FOR
VALUE RECEIVED, the undersigned ORION ENERGY SYSTEMS, INC. and GREAT LAKES ENERGY
TECCHNOLOGIES, LLC (“Borrower”) promises to pay to the order of WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”) at its office at 100 East Wisconsin Avenue,
Suite #1400, Milwaukee, WI 53202, Wisconsin, or at such other place as the holder hereof
may designate, in lawful money of the United States of America and in immediately
available funds, the principal sum of Twenty Five Million Dollars ($25,000,000.00), or so
much thereof as may be advanced and be outstanding, with interest thereon, to be computed
on each advance from the date of its disbursement as set forth herein. 

	1.  	DEFINITIONS: 

        As
used herein, the following terms shall have the meanings set forth after each, and any
other term defined in this Note shall have the meaning set forth at the place defined: 

        1.1    
“Business Day” means any day except a Saturday, Sunday or any other day on which
commercial banks in Wisconsin are authorized or required by law to close. 

        1.2    
“Fixed Rate Term” means a period commencing on a Business Day and continuing for
1, 2, 3 or 6 months, as designated by Borrower, during which all or a portion of the
outstanding principal balance of this Note bears interest determined in relation to LIBOR;
provided however, that no Fixed Rate Term may be selected for a principal amount less than
($100,000.00); and provided further, that no Fixed Rate Term shall extend beyond the
scheduled maturity date hereof. If any Fixed Rate Term would end on a day which is not a
Business Day, then such Fixed Rate Term shall be extended to the next succeeding Business
Day. 

        1.3    
“LIBOR” means the rate per annum (rounded upward, if necessary, to the nearest
whole 1/8 of 1%) determined by dividing Base LIBOR by a percentage equal to 100% less any
LIBOR Reserve Percentage. 

            (a)           “Base
LIBOR” means the rate per annum for United States dollar           deposits quoted
by Bank as the Inter-Bank Market Offered Rate, with the           understanding that such
rate is quoted by Bank for the purpose of calculating           effective rates of
interest for loans making reference thereto, on the first day           of a Fixed Rate
Term for delivery of funds on said date for a period of time           approximately
equal to the number of days in such Fixed Rate Term and in an           amount
approximately equal to the principal amount to which such Fixed Rate Term
          applies. Borrower understands and agrees that Bank may base its quotation of
the           Inter-Bank Market Offered Rate upon such offers or other market indicators
of           the Inter-Bank Market as Bank in its discretion deems appropriate including,
but           not limited to, the rate offered for U.S. dollar deposits on the London
          Inter-Bank Market.  

            (b)               “LIBOR
Reserve Percentage” means the reserve percentage prescribed by           the Board
of Governors of the Federal Reserve System (or any successor) for           “Eurocurrency
Liabilities” (as defined in Regulation D of the Federal           Reserve Board, as
amended), adjusted by Bank for expected changes in such           reserve percentage
during the applicable Fixed Rate Term.  

-1- 

        1.4    
“Prime Rate” means at any time the rate of interest most recently announced
within Bank at its principal office as its Prime Rate, with the understanding that the
Prime Rate is one of Bank’s base rates and serves as the basis upon which effective
rates of interest are calculated for those loans making reference thereto, and is
evidenced by the recording thereof after its announcement in such internal publication or
publications as Bank may designate. 

	2.  	INTEREST: 

        2.1    
Interest. The outstanding principal balance of this Note shall bear interest
(computed on the basis of a 360-day year, actual days elapsed) either (a) at a fluctuating
rate per annum one percent (1.00%) below the Prime Rate in effect from time to time, or
(b) at a fixed rate per annum determined by Bank to be one and one quarter percent (1.25%)
above LIBOR in effect on the first day of the applicable Fixed Rate Term. When interest is
determined in relation to the Prime Rate, each change in the rate of interest hereunder
shall become effective on the date each Prime Rate change is announced within Bank. With
respect to each LIBOR selection hereunder, Bank is hereby authorized to note the date,
principal amount, interest rate and Fixed Rate Term applicable thereto and any payments
made thereon on Bank’s books and records (either manually or by electronic entry)
and/or on any schedule attached to this Note, which notations shall be prima facie
evidence of the accuracy of the information noted. 

        2.2    
Selection of Interest Rate Options. At any time any portion of this Note bears
interest determined in relation to LIBOR, it may be continued by Borrower at the end of
the Fixed Rate Term applicable thereto so that all or a portion thereof bears interest
determined in relation to the Prime Rate or to LIBOR for a new Fixed Rate Term designated
by Borrower. At any time any portion of this Note bears interest determined in relation to
the Prime Rate, Borrower may convert all or a portion thereof so that it bears interest
determined in relation to LIBOR for a Fixed Rate Term designated by Borrower. At such time
as Borrower requests an advance hereunder or wishes to select a LIBOR option for all or a
portion of the outstanding principal balance hereof, and at the end of each Fixed Rate
Term, Borrower shall give Bank notice specifying: (a) the interest rate option selected by
Borrower; (b) the principal amount subject thereto; and (c) for each LIBOR selection,
the length of the applicable Fixed Rate Term. Any such notice may be given by telephone
(or such other electronic method as Bank may permit) so long as, with respect to each
LIBOR selection, (i) if requested by Bank, Borrower provides to Bank written confirmation
thereof not later than three (3) Business Days after such notice is given, and (ii) such
notice is given to Bank prior to 10:00 a.m. on the first day of the Fixed Rate Term, or at
a later time during any Business Day if Bank, at its sole option but without obligation to
do so, accepts Borrower’s notice and quotes a fixed rate to Borrower. If Borrower
does not immediately accept a fixed rate when quoted by Bank, the quoted rate shall expire
and any subsequent LIBOR request from Borrower shall be subject to a redetermination by
Bank of the applicable fixed rate. If no specific designation of interest is made at the
time any advance is requested hereunder or at the end of any Fixed Rate Term, Borrower
shall be deemed to have made a Prime Rate interest selection for such advance or the
principal amount to which such Fixed Rate Term applied. 

        2.3    
Taxes and Regulatory Costs. Borrower shall pay to Bank immediately upon demand, in
addition to any other amounts due or to become due hereunder, any and all (a)
withholdings, interest equalization taxes, stamp taxes or other taxes (except income and
franchise taxes) imposed by any domestic or foreign governmental authority and related in
any manner to LIBOR, and (b) future, supplemental, emergency or other changes in the LIBOR
Reserve Percentage, assessment rates imposed by the Federal Deposit Insurance Corporation,
or similar requirements or costs imposed by any domestic or foreign governmental authority
or resulting from compliance by Bank with any request or directive (whether or not having
the force of law) from any central bank or other governmental authority and related in any
manner to LIBOR to the extent they are not included in the calculation of LIBOR. In
determining which of the foregoing are attributable to any LIBOR option available to
Borrower hereunder, any reasonable allocation made by Bank among its operations shall be
conclusive and binding upon Borrower. 

-2- 

        2.4    
Payment of Interest. Interest accrued on this Note shall be payable on the last day
of each month, commencing March 31, 2008. 

        2.5    
Default Interest. From and after the maturity date of this Note, or such earlier
date as all principal owing hereunder becomes due and payable by acceleration or
otherwise, the outstanding principal balance of this Note shall bear interest until paid
in full at an increased rate per annum (computed on the basis of a 360-day year, actual
days elapsed) equal to (4%) above the rate of interest from time to time applicable to
this Note. 

	3.  	BORROWING
AND REPAYMENT: 

        3.1    
Borrowing and Repayment. Borrower may from time to time during the term of this
Note borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject
to all of the limitations, terms and conditions of this Note and of any document executed
in connection with or governing this Note; provided however, that the total outstanding
borrowings under this Note shall not at any time exceed the principal amount stated above.
The unpaid principal balance of this obligation at any time shall be the total amounts
advanced hereunder by the holder hereof less the amount of principal payments made hereon
by or for Borrower, which balance may be endorsed hereon from time to time by the holder.
The outstanding principal balance of this Note shall be due and payable in full on August
31, 2010. 

        3.2    
Advances. Advances hereunder, to the total amount of the principal sum stated above, may be made by the holder at the oral
or written request of any person, with respect to advances deposited to the credit of any deposit account of
Borrower, which advances, when so deposited, shall be conclusively presumed to have been made to or for the
benefit of Borrower regardless of the fact that persons other than those authorized to request advances may have
authority to draw against such account. The holder shall have no obligation to determine whether any person
requesting an advance is or has been authorized by Borrower. 

        3.3    
Application of Payments. Each payment made on this Note shall be credited first, to
any interest then due and second, to the outstanding principal balance hereof. All
payments credited to principal shall be applied first, to the outstanding principal
balance of this Note which bears interest determined in relation to the Prime Rate, if
any, and second, to the outstanding principal balance of this Note which bears interest
determined in relation to LIBOR, with such payments applied to the oldest Fixed Rate Term
first. 

-3- 

	4.  	PREPAYMENT: 

        4.1    
Prime Rate. Borrower may prepay principal on any portion of this Note which bears
interest determined in relation to the Prime Rate at any time, in any amount and without
penalty. 

        4.2    
LIBOR. Borrower may prepay principal on any portion of this Note which bears
interest determined in relation to LIBOR at any time and in the minimum amount of
($100,000.00); provided however, that if the outstanding principal balance of such portion
of this Note is less than said amount, the minimum prepayment amount shall be the entire
outstanding principal balance thereof. In consideration of Bank providing this prepayment
option to Borrower, or if any such portion of this Note shall become due and payable at
any time prior to the last day of the Fixed Rate Term applicable thereto by acceleration
or otherwise, Borrower shall pay to Bank immediately upon demand a fee which is the sum of
the discounted monthly differences for each month from the month of prepayment through the
month in which such Fixed Rate Term matures, calculated as follows for each such month: 

	 	(a) 	Determine the
amount of interest which would have accrued each month on                     the amount
prepaid at the interest rate applicable to such amount had it
                    remained outstanding until the last day of the Fixed Rate Term
applicable                     thereto.  

	 	(b) 	Subtract from
the amount determined in (a) above the amount of interest                     which would
have accrued for the same month on the amount prepaid for the
                    remaining term of such Fixed Rate Term at LIBOR in effect on the date
of                     prepayment for new loans made for such term and in a principal
amount equal to                     the amount prepaid.  

	 	(c) 	If
the result obtained in (b) for any month is greater than zero, discount that
                    difference by LIBOR used in (c) above.  

Borrower acknowledges that prepayment
of such amount may result in Bank incurring additional costs, expenses and/or liabilities,
and that it is difficult to ascertain the full extent of such costs, expenses and/or
liabilities. Borrower, therefore, agrees to pay the above-described prepayment fee and
agrees that said amount represents a reasonable estimate of the prepayment costs, expenses
and/or liabilities of Bank. If Borrower fails to pay any prepayment fee when due, the
amount of such prepayment fee shall thereafter bear interest until paid at a rate per
annum (2.00%) above the Prime Rate in effect from time to time (computed on the basis of a
360-day year, actual days elapsed). 

	5.  	EVENTS
OF DEFAULT: 

        This
Note is made pursuant to and is subject to the terms and conditions of that certain Credit
Agreement between Borrower and Bank dated as of March 18, 2008, as amended from time to
time (the “Credit Agreement”). Any default in the payment or performance of any
obligation under this Note, or any defined event of default under the Credit Agreement,
shall constitute an “Event of Default” under this Note. 

	6.  	MISCELLANEOUS: 

-4- 

        6.1    
Remedies. Upon the occurrence of any Event of Default, the holder of this Note, at
the holder’s option, may declare all sums of principal and interest outstanding
hereunder to be immediately due and payable without presentment, demand, notice of
nonperformance, notice of protest, protest or notice of dishonor, all of which are
expressly waived by Borrower, and the obligation, if any, of the holder to extend any
further credit hereunder shall immediately cease and terminate. Borrower shall pay to the
holder immediately upon demand the full amount of all payments, advances, charges, costs
and expenses, including reasonable attorneys’ fees (to include outside counsel fees
and all allocated costs of the holder’s in-house counsel), expended or incurred by
the holder in connection with the enforcement of the holder’s rights and/or the
collection of any amounts which become due to the holder under this Note, and the
prosecution or defense of any action in any way related to this Note, including without
limitation, any action for declaratory relief, whether incurred at the trial or appellate
level, in an arbitration proceeding or otherwise, and including any of the foregoing
incurred in connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Bank or any other person)
relating to Borrower or any other person or entity. 

        6.2    
Obligations Joint and Several. Should more than one person or entity sign this Note
as a Borrower, the obligations of each such Borrower shall be joint and several. 

        6.3    Governing
Law.  This Note shall be governed by and construed in accordance with the laws of the
State of Wisconsin. 

        6.4    
Business Purpose. Borrower represents and warrants that all loans evidenced by this
Note are for a business, commercial, investment, or other similar purpose and not
primarily for a personal, family or household use. 

        IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date first written
above. 

Orion Energy Systems, Inc. 

By: /s/ Neal R. Verfuerth
Neal
R. Verfuerth, President/Chief Executive Officer  

Great Lake Energy
Technologies, LLC 

By:  /s/ Neal R. Verfuerth
Neal R. Verfuerth, Manager 

-5-

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