Document:

Amended and Restated Venture Loan and Security Agreement

 Exhibit 10.10 
 AMENDED AND RESTATED 
 VENTURE LOAN AND SECURITY AGREEMENT 

Originally Dated March 11, 2010 

Amended and Restated as of March 25, 2011 
 by and between 
 HORIZON TECHNOLOGY FINANCE CORPORATION, 

a Delaware corporation 
 76 Batterson Park Road 
 Farmington, CT 06032 

as Lender 

HORIZON CREDIT I LLC 
 a Delaware limited liability company 
 76 Batterson Park Road 

Farmington, CT 06032 
 as Assignee and Holder of Advance (Loan A) 
 And 

ENPHASE ENERGY, INC., 
 a Delaware corporation 
 201 1st Street, Suite 300 

Petaluma, CA 94952 

as Borrower 

Commitment Amount (Loan A): $7,000,000 
 Commitment Amount (Loan B): $2,000,000 
 Commitment Amount (Loan C): $3,000,000

 Commitment Termination Date (Loan A): March 19, 2010 

Commitment Termination Date (Loan B): March 31, 2011 
 Commitment Termination Date (Loan C): July 31, 2011 

 The Lender and Borrower hereby agree as follows: 

AGREEMENT 

1. Definitions and Construction. 
 1.1 Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings: 
 “Account Control Agreement” means an agreement acceptable to Lender which perfects via control Lender’s security interest in Borrower’s deposit accounts and/or accounts holding
securities. 
 “Advance” means any advance of credit by Lender to the Borrower under this Agreement, and
“Advances” means, collectively, all such Advances. 
 “Advance (Loan A)” means the single
Advance under the Loan Facility (Loan A) to the Borrower under this Agreement. 
 “Advance (Loan B)” means the
single Advance under the Loan Facility (Loan B) to the Borrower under this Agreement. 
 “Advance (Loan C)”
means the single Advance under the Loan Facility (Loan C) to the Borrower under this Agreement. 
 “Advance (Loan A)
Scheduled Payments” has the meaning given such term in Section 2.2(a) of this Agreement. 

“Advance (Loan B) Scheduled Payments” has the meaning given such term in Section 2.2(b) of this Agreement.

 “Advance (Loan C) Scheduled Payments” has the meaning given such term in Section 2.2(c) of this
Agreement. 
 “Affiliate” means any Person that owns or controls directly or indirectly ten percent
(10%) or more of the stock of another entity, any Person that controls or is controlled by or is under common control with such Persons or any Affiliate of such Persons and each of such Person’s officers, directors, joint venturers or
partners. 
 “Agreement” means this certain Amended and Restated Venture Loan and Security Agreement by and
between Borrower and Lender dated as of the date on the cover page hereto (as it may from time to time be amended or supplemented in writing signed by the Borrower and Lender). 

“Account” has the meaning given such term in Section 7.13 of this Agreement. 

  
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 “Borrower” means the Borrower as set forth on the cover page of this
Agreement. 
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banking
institutions are authorized or required to close in Connecticut or California. 
 “Claim” has the meaning given
such term in Section 10.3 of this Agreement 
 “Code” means the Uniform Commercial Code as adopted
and in effect in the State of Connecticut, as amended from time to time; provided that if by reason of mandatory provisions of law, the creation and/or perfection or the effect of perfection or non-perfection of the security interest
in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than Connecticut, the term “Code” shall also mean the Uniform Commercial Code as in effect from time to time in such jurisdiction for
purposes of the provisions hereof relating to such creation, perfection or effect of perfection or non-perfection. 

“Collateral” has the meaning given such term in Section 4.1 of this Agreement. 

“Commitment Amount” means, collectively, Commitment Amount (Loan A), Commitment Amount (Loan B) and Commitment Amount
(Loan C). 
 “Commitment Amount (Loan A)” has the meaning as set forth on the cover page of this Agreement.

 “Commitment Amount (Loan B)” has the meaning as set forth on the cover page of this Agreement. 

“Commitment Amount (Loan C)” has the meaning set forth on the cover page of this Agreement. 

“Commitment Fee” has the meaning given such term in Section 2.6(c) of this Agreement. 

“Commitment Termination Date” means, as applicable, the Commitment Termination Date (Loan A), the Commitment Termination
Date (Loan B) or the Commitment Termination Date (Loan C). 
 “Commitment Termination Date (Loan A)” has the
meaning set forth on the cover page of this Agreement. 
 “Commitment Termination Date (Loan B)” has the
meaning set forth on the cover page of this Agreement. 
 “Commitment Termination Date (Loan C)” has the
meaning set forth on the cover page of this Agreement 
 “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; (ii) any obligations with respect to undrawn letters
of credit, corporate credit cards, or merchant services issued or provided for the account of that 

  
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Person; and (iii) all obligations arising under any agreement or arrangement designed to protect such 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 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 Lender 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. 
 “Default” means any event which with the passing of time or the giving of notice or both would become an Event of Default hereunder. 

“Default Rate” means the per annum rate of interest equal to five percent (5%) over the applicable Loan Rate, but
such rate shall in no event be more than the highest rate permitted by applicable law to be charged on commercial loans in a default situation. 
 “Disclosure Schedule” means the Disclosure Letter provided by Borrower to Lender on or about the date hereof. 
 “Environmental Laws” means all foreign, federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders,
directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authorities, in each case relating to environmental, health, safety and land use matters, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the Toxic Substances Control Act and the Emergency Planning
and Community Right-to-Know Act. 
 “Equipment” means all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest. 
 “Equity
Securities” of any Person means (a) all common stock, preferred stock, participations, shares, partnership interests, membership interests or other equity interests in and of such Person (regardless of how designated and whether or not
voting or non-voting) and (b) all warrants, options and other rights to acquire any of the foregoing. 

“ERISA” has the meaning given to such term in Section 7.12 of this Agreement. 

“Event of Default” has the meaning given to such term in Section 8 of this Agreement. 

“Foreign Accounts” has the meaning given such term in Section 7.13 of this Agreement. 

“French Account” has the meaning given such term in Section 7.13 of this Agreement. 

“Funding Certificate” means a certificate executed by a Responsible Officer of Borrower substantially in the form of
Exhibit B or such other form as Lender may agree to accept. 

  
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 “Funding Date” means any date on which an Advance is made to or on account
of Borrower under this Agreement. 
 “GAAP” means generally accepted accounting principles as in effect in the
United States of America from time to time, consistently applied. 
 “Good Faith Deposit” has the meaning given
such term in Section 2.6(a) of this Agreement. 
 “Governmental Authority” means (a) any
federal, state, county, municipal or foreign government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, (c) any court
or administrative tribunal, or (d) with respect to any Person, any arbitration tribunal or other non-governmental authority to whose jurisdiction that Person has consented. 

“Hazardous Materials” means all those substances which are regulated by, or which may form the basis of liability under,
any Environmental Law, including all substances identified under any Environmental Law as a pollutant, contaminant, hazardous waste, hazardous constituent, special waste, hazardous substance, hazardous material, or toxic substance, or petroleum or
petroleum derived substance or waste. 
 “Indebtedness” means (a) all indebtedness for borrowed money or
the deferred purchase price of property or services (excluding trade payables aged less than one hundred eighty (180) days), including without limitation 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. 
 “Indemnified Person” has the meaning given such term in Section 10.3 of this Agreement. 
 “Intellectual Property” means all of Borrower’s right, title and interest in and to patents, patent rights (and applications and registrations therefor and divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same), trademarks and service marks (and applications and registrations therefor and the goodwill associated therewith), inventions, copyrights (including applications and registrations
therefor and like protections in each work or authorship and derivative work thereof), mask works (and applications and registrations therefor), trade names, trade styles, software and computer programs, source code, object code, trade secrets,
methods, processes, know how, drawings, specifications, descriptions, and all memoranda, notes, and records with respect to any research and development, all whether now owned or subsequently acquired or developed by Borrower and all licenses to use
the foregoing, whether in tangible or intangible form or contained on magnetic media readable by machine together with all such magnetic media (but not including embedded computer programs and supporting information included within the definition of
“goods” under the Code). 
 “Inventory” means all inventory in which Borrower has or acquires any
interest, including work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or at any time hereafter owned by or in the custody or possession, actual or
constructive, of Borrower, including such inventory as 

  
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 is temporarily out of its custody or possession or in transit and including any returns upon any accounts or
other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Borrower’s books relating to any of the foregoing. 

“Investment” means the purchase or acquisition of any capital stock, equity interest, or any obligations or other
securities of, or any interest in, any Person, or the extension of any advance, loan, extension of credit (excluding inter-company trade payables aged less than one hundred eighty (180) days) or capital contribution to, or any other investment
in, or deposit with, any Person. 
 “Italian Account” has the meaning given such term in
Section 7.13 of this Agreement. 
 “Landlord Agreement” means an agreement substantially in the
form provided by Lender to Borrower or such other form as Lender may agree to accept. 
 “Lender” means the
Lender as set forth on the cover page of this Agreement. 
 “Lender’s Expenses” means all reasonable costs
or expenses (including reasonable attorneys’ fees and expenses) incurred in connection with the preparation, negotiation, documentation, administration and funding of the Loan Documents; and Lender’s reasonable attorneys’ fees, costs
and expenses incurred in amending, modifying, enforcing or defending the Loan Documents (including fees and expenses of appeal or review), including the exercise of any rights or remedies afforded hereunder or under applicable law, whether or not
suit is brought, whether before or after bankruptcy or insolvency, including without limitation all fees and costs incurred by Lender in connection with Lender’s enforcement of its rights in a bankruptcy or insolvency proceeding filed by or
against Borrower or its Property. 
 “Lien” means any voluntary or involuntary security interest, pledge,
bailment, lease, mortgage, hypothecation, conditional sales and title retention agreement, encumbrance or other lien with respect to any Property in favor of any Person. 
 “Loan” means the advance of credit by Lender to Borrower pursuant to the Advance (Loan A), the Advance (Loan B) and the Advance (Loan C) under this Agreement, and “Loans”
means collectively all such Advances. 
 “Loan Documents” means, collectively, this Agreement, each Note, each
Warrant, any Landlord Agreement, any Account Control Agreement and all other documents, instruments and agreements entered into in connection with this Agreement, all as amended or extended from time to time. 

“Loan Facility (Loan A)” means Lender’s obligation to fund the Advance (Loan A) hereunder in an aggregate
outstanding principal amount not to exceed the Commitment Amount (Loan A). 
 “Loan Facility (Loan B)” means
Lender’s obligation to fund the Advance (Loan B) hereunder in an aggregate outstanding principal amount not to exceed the Commitment Amount (Loan B). 

  
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 “Loan Facility (Loan C)” means Lender’s obligation to fund the Advance
(Loan C) hereunder in an aggregate outstanding principal amount not to exceed the Commitment Amount (Loan C). 
 “Loan
Rate” shall mean, as applicable, Loan Rate (Loan A), Loan Rate (Loan B) or Loan Rate (Loan C) as applicable. 

“Loan Rate (Loan A)” means the fixed per annum rate of interest (based on a year of twelve 30-day months) equal to
12.60%. 
 “Loan Rate (Loan B)” means the fixed per annum rate of interest (based on a year of twelve 30-day
months) equal to the greater of (a) 10.75% or (b) 10.75% plus the difference between (i) the one month LIBOR Rate (rounded to the nearest one hundredth percent), as reported in the Wall Street Journal, on the date which is five
(5) Business Days before the Funding Date for Advance (Loan B) (or, if the Wall Street Journal is not published on such date, the next earlier date on which it is published) and (ii) 0.30%. 

“Loan Rate (Loan C)” means the fixed per annum rate of interest (based on a year of twelve 30-day months) equal to the
greater of (a) 10.75% or (b) 10.75% plus the difference between (i) the one month LIBOR Rate (rounded to the nearest one hundredth percent), as reported in the Wall Street Journal, on the date which is five (5) Business
Days before the Funding Date for Advance (Loan C) (or, if the Wall Street Journal is not published on such date, the next earlier date on which it is published) and (ii) 0.30%. 

“Maturity Date (Loan A)” means October 1, 2013, or if earlier, the date of acceleration of Advance (Loan A)
following an Event of Default or the date of prepayment, whichever is applicable. 
 “Maturity Date (Loan B)”
means October 1, 2014, or if earlier, the date of acceleration of Advance (Loan B) following an Event of Default or the date of prepayment, whichever is applicable. 
 “Maturity Date (Loan C)” means the first calendar day of the month that follows the Forty-Two (42) month anniversary of the Funding Date of Advance (Loan C), or if earlier, the date
of acceleration of Advance (Loan C) following an Event of Default or the date of prepayment, whichever is applicable. 

“Note” means each promissory note executed in connection with the Loans in substantially the form of Exhibit C
attached hereto, and collectively, “Notes” means all such promissory notes. 
 “Obligations”
means all debt, principal, interest, fees, charges, expenses and attorneys’ fees and costs and other amounts, obligations, covenants, and duties owing by Borrower to Lender of any kind and description (whether pursuant to or evidenced by the
Loan Documents (other than the Warrant), or by any other agreement between Lender and Borrower, and whether or not for the payment of money), whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter
arising, including all Lender’s Expenses. 

  
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 “Officer’s Certificate” means a certificate executed by a Responsible
Officer substantially in the form of Exhibit E or such other form as Lender may agree to accept. 
 “Payment
Date” has the meaning given such term in Section 2.2(a) of this Agreement. 
 “Permitted
Indebtedness” means and includes: 
 (a) Indebtedness of Borrower to Lender; 

(b) Indebtedness arising from the endorsement of instruments in the ordinary course of business; 

(c) Indebtedness existing on the date hereof and set forth on the Disclosure Schedule; 

(d) Indebtedness in an aggregate principal amount not exceeding Thirty Million Dollars ($30,000,000), consisting of a revolving credit
facility from Bridge Bank, N.A. and Comerica Bank and in which the loans are limited to not more than Eighty Percent (80%) of Borrower’s outstanding accounts receivable and Fifty Percent (50%) of Borrower’s eligible inventory;

 (e) Indebtedness secured by a lien described in clause (g) of the defined term “Permitted Liens,” provided
(i) such Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness and (ii) such Indebtedness does not exceed Five Million Dollars ($5,000,000) in the aggregate at any given
time; and 
 (f) Indebtedness to Oracle America, Inc. or one of its affiliates, including Oracle Credit Corporation in an
aggregate amount not to exceed $500,000; 
 (g) Inter-company Indebtedness incurred in the ordinary course of business;

 (h) Other Indebtedness in an aggregate amount not exceeding Seven Hundred Fifty Thousand Dollars ($750,000) at any time;

 (i) Subordinated Debt; and 
 (j) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (i) above, provided that the principal amount thereof is not increased
or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 

“Permitted Investments” means and includes any of the following Investments as to which Lender has a perfected security
interest: 
 (a) Deposits and deposit accounts with commercial banks organized under the laws of the United States or a state
thereof to the extent: (i) the deposit accounts of each such institution are insured by the Federal Deposit Insurance Corporation up to the legal limit; and (ii) 

  
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each such institution has an aggregate capital and surplus of not less than One Hundred Million Dollars ($100,000,000); 
 (b) Investments made in accordance with Borrower’s board approved short term investment policy; 
 (c) Investments in marketable obligations issued or fully guaranteed by the United States and maturing not more than one (1) year from the date of issuance; 

(d) Investments in open market commercial paper rated at least “A1” or “P1” or higher by a national credit rating
agency and maturing not more than one (1) year from the creation thereof; 
 (e) Investments pursuant to or arising under
currency agreements or interest rate agreements entered into in the ordinary course of business; 
 (f) Investments consisting
of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or
its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal year; 

(g) 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 business; 
 (h) 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 paragraph (g) shall not apply to Investments of Borrower in any Subsidiary; 
 (i) Investments in Subsidiaries made
in the ordinary course of business, not to exceed Four Million Five Hundred Thousand and 00/100 Dollars ($4,500,000) in the aggregate in any fiscal year; 
 (j) (x) 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 do not exceed Five Hundred Thousand Dollars ($500,000) in the aggregate in any fiscal year; and (y) strategic alliances with particular customers in which such customers will
share in the research and development expense of Borrower associated with the incorporation by such customers of microconverters purchased from Borrower into solar panels produced by such customers; and 

(k) Other Investments aggregating not in excess of Two Hundred Fifty Thousand Dollars ($250,000) at any time. 

  
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 “Permitted Liens” means and includes: 

(a) the Lien created by this Agreement; 
 (b) Liens for fees, taxes, levies, imposts, duties or other governmental charges of any kind which are not yet delinquent or which are being contested in good faith by appropriate proceedings which
suspend the collection thereof (provided that such appropriate proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of Collateral which in the aggregate is material to Borrower and that
Borrower has adequately bonded such Lien or reserves sufficient to discharge such Lien have been provided on the books of Borrower); 
 (c) Liens identified on the Disclosure Schedule; 
 (d) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other similar Liens arising in the ordinary course of business and which are not delinquent or remain payable without penalty or which are being contested in good faith
and by appropriate proceedings (“provided that such appropriate proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of Collateral or Collateral which in the aggregate is material
to Borrower and that Borrower has adequately bonded such Lien or reserves sufficient to discharge such Lien have been provided on the books of Borrower); 
 (e) Liens granted in connection with Indebtedness permitted under subsection (d) of the definition of Permitted Indebtedness; provided that such liens shall be subject to an intercreditor agreement
between Bridge Bank, N.A., Comerica Bank and Lender; 
 (f) non-exclusive licenses of Intellectual Property entered into in the
ordinary course of business, and licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as
to discreet geographical areas outside of the United States. 
 (g) Liens (i) upon or in any equipment which was not
financed by Lender acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing the acquisition of such equipment, or (ii) existing on such
equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment; 
 (h) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens
imposed by ERISA); 
 (i) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an
Event of Default under Sections 8.5 and 8.8; 

  
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 (j) Liens in favor of customs and revenue authorities incurred in the ordinary course of
business to secure payment of custom duties in connection with the importation of goods; 
 (k) leases or subleases of real
property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other
than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit
granting a security interest therein; and 
 (1) Liens incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by Liens of the type described in clauses (a) through (k) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase; 
 “Person” means and includes any
individual, any partnership, any corporation, any business trust, any joint stock company, any limited liability company, any unincorporated association or any other entity and any domestic or foreign national, state or local government, any
political subdivision thereof, and any department, agency, authority or bureau of any of the foregoing. 

.“Property” means any interest in any kind of property or asset, whether real, personal or mixed, whether tangible or
intangible. 
 “Responsible Officer” has the meaning given such term in Section 6.3 of this
Agreement. 
 “Scheduled Payments” shall mean collectively, the Advance (Loan A) Scheduled Payments, the
Advance (Loan B) Scheduled Payments and the Advance (Loan C) Scheduled Payments. 
 “Solvent” has the meaning
given such term in Section 5.11 of this Agreement. 
 “Subordinated Debt” means any debt incurred
by Borrower that is subordinated to the debt owing by Borrower to Lender hereunder or under any of the Loan Documents on terms acceptable to Lender (and identified as being such by Borrower and Lender). 

“Subsidiary” means any corporation or other entity of which a majority of the outstanding Equity Securities entitled to
vote for the election of directors or other governing body (otherwise than as the result of a default) is owned by Borrower directly or indirectly through Subsidiaries, including without limitation Enphase Energy SAS and Enphase Energy SRL.

 “Third Party Equipment” has the meaning given such term in Section 4.8 of this Agreement.

 “Transfer” has the meaning given such term in Section 7.4 of this Agreement. 

  
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 “Warrant A” means the warrant to purchase Equity Securities of Borrower
granted to Lender on or about the date of the Advance (Loan A), and any replacement warrants issued in connection therewith. 

“Warrant B” means the warrant to purchase Equity Securities of Borrower granted to Lender on or about the date hereof,
and any replacement warrants issued in connection therewith. 
 “Warrants” means collectively, Warrant A and
Warrant B. 
 1.2 Construction. This Agreement amends and restates that certain Venture Loan and Security Agreement dated
as of March 11, 2010 by and between Lender and Borrower. References in this Agreement to “Articles,” “Sections,” “Exhibits,” “Schedules” and “Annexes” are to recitals, articles, sections,
exhibits, schedules and annexes herein and hereto unless otherwise indicated. References in this Agreement and each of the other Loan Documents to any document, instrument or agreement shall include (a) all exhibits, schedules, annexes and
other attachments thereto, (b) all documents, instruments or agreements issued or executed in replacement thereof, and (c) such document, instrument or agreement, or replacement or predecessor thereto, as amended, modified and supplemented
from time to time and in effect at any given time. The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement or any other Loan Document shall refer to this Agreement or such
other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. The words “include” and “including” and words of similar import when used
in this Agreement or any other Loan Document shall not be construed to be limiting or exclusive. Unless otherwise indicated in this Agreement or any other Loan Document, all accounting terms used in this Agreement or any other Loan Document shall be
construed, and all accounting and financial computations hereunder or thereunder shall be computed, in accordance with GAAP, and all terms describing Collateral shall be construed in accordance with the Code. The terms and information set forth on
the cover page of this Agreement are incorporated into this Agreement. 
 2. Loans; Repayment. 

2.1 Commitment. 
 (a) The Commitment Amount (Loan A). Subject to the terms and conditions of this Agreement and relying upon the representations and warranties herein set forth as and when made or deemed to be made,
Lender agrees to lend to Borrower prior to the Commitment Termination Date (Loan A), one Advance in an aggregate amount not to exceed the Commitment Amount (Loan A). 
 (b) The Commitment Amount (Loan B). Subject to the terms and conditions of this Agreement and relying upon the representations and warranties herein set forth as and when made or deemed to be made,
Lender agrees to lend to Borrower prior to the Commitment Termination Date (Loan B), one Advance in an aggregate amount not to exceed the Commitment Amount (Loan B). 
 (c) The Commitment Amount (Loan C). Subject to the terms and conditions of this Agreement and relying upon the representations and warranties herein set forth

  
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as and when made or deemed to be made, Lender agrees to lend to Borrower prior to the Commitment Termination Date (Loan C), one Advance in an aggregate amount not to exceed the Commitment Amount
(Loan C). 
 (d) The Loans and the Notes. The obligation of Borrower to repay the unpaid principal amount of and
interest on the Loans shall be evidenced by one or more Notes issued to Lender. 
 (e) Use of Proceeds. The proceeds of
the Loans shall be used solely for working capital or general corporate purposes of Borrower. 
 (f) Termination of
Commitment to Lend. Notwithstanding anything in the Loan Documents, Lender’s obligation to lend the undisbursed portion of the Commitment Amount to Borrower hereunder shall terminate on the earlier of (i) at Lender’s sole
election, the occurrence of any Default or Event of Default hereunder, and (ii) the applicable Commitment Termination Date. Notwithstanding the foregoing, Lender’s obligation to lend the undisbursed portion of the Commitment Amount to
Borrower shall terminate if, in Lender’s sole judgment, there has been a material adverse change in the general affairs, management, results of operations, condition (financial or otherwise) or prospects of Borrower, whether or not arising from
transactions in the ordinary course of business, or there has been any material adverse deviation by Borrower from the business plan of Borrower presented to Lender on or before the date of this Agreement. 

2.2 Payments. 
 (a) Scheduled Payments for Advance (Loan A). Borrower shall make a payment of accrued interest only on the outstanding principal amount of the Advance (Loan A) on the first twelve (12) Payment
Dates specified in the Note applicable to such Advance (Loan A) and an equal payment of principal plus accrued interest on the outstanding principal amount of the Advance (Loan A) on the next thirty (30) Payment Dates as set forth in the Note
applicable to such Advance (Loan A) (collectively, the “Advance (Loan A) Scheduled Payments”). Borrower shall make such Scheduled Payments commencing on the date set forth in the Note applicable to such Advance (Loan A) and
continuing thereafter on the first Business Day of each calendar month (each a “Payment Date”) through the Maturity Date (Loan A). In any event, all unpaid principal and accrued interest shall be due and payable in full on the
Maturity Date (Loan A). 
 (b) Scheduled Payments for Advance (Loan B). Borrower shall make a payment of accrued
interest only on the outstanding principal amount of the Advance (Loan B) on the first twelve (12) Payment Dates specified in the Note applicable to such Advance (Loan B) and an equal payment of principal plus accrued interest on the
outstanding principal amount of the Advance (Loan B) on the next thirty (30) Payment Dates as set forth in the Note applicable to such Advance (Loan B) (collectively, the “Advance (Loan B) Scheduled Payments”). Borrower shall
make such Advance (Loan B) Scheduled Payments commencing on the date set forth in the Note applicable to such Advance (Loan B) and continuing thereafter on each Payment Date through the Maturity Date (Loan B). In any event, all unpaid principal and

  
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accrued interest on Advance (Loan B) shall be due and payable in full on the Maturity Date (Loan B). 
 (c) Scheduled Payments for Advance (Loan C). Borrower shall make a payment of accrued interest only on the outstanding principal amount of the Advance (Loan C) on the first twelve (12) Payment
Dates specified in the Note applicable to such Advance (Loan C) and an equal payment of principal plus accrued interest on the outstanding principal amount of the Advance (Loan C) on the next thirty (30) Payment Dates as set forth in the Note
applicable to such Advance (Loan C) (collectively, the “Advance (Loan C) Scheduled Payments”). Borrower shall make such Advance (Loan C) Scheduled Payments commencing on the date set forth in the Note applicable to such Advance
(Loan C) and continuing thereafter on each Payment Date through the Maturity Date (Loan C). In any event, all unpaid principal and accrued interest on Advance (Loan C) shall be due and payable in full on the Maturity Date (Loan C). 

(d) Interim Payment. Unless the Funding Date for a Loan is the first day of a calendar month, Borrower shall pay the per diem
interest (accruing at the applicable Loan Rate from the Funding Date through the last day of that month) payable with respect to such Loan on the first Business Day of the next calendar month. 

(e) Payment of Interest. Borrower shall pay interest on each Loan at a fixed per annum rate of interest equal to the applicable
Loan Rate. All computations of interest (including interest at the Default Rate, if applicable) shall be based on a year of twelve 30-day months. Notwithstanding any other provision hereof, the amount of interest payable hereunder shall not in any
event exceed the maximum amount permitted by the law applicable to interest charged on commercial loans. 
 (f) Application
of Payments. All payments received by Lender prior to an Event of Default shall be applied as follows: (1) first, to Lender’s Expenses then due and owing; and (2) second to all Scheduled Payments then due and owing
(provided, however, if such payments are not sufficient to pay the whole amount then due, such payments shall be applied first to unpaid interest at the applicable Loan Rate, then to the remaining amount then due). After an Event of
Default, all payments and application of proceeds shall be made as set forth in Section 9.7. 
 (g) Late Payment
Fee. Borrower shall pay to Lender a late payment fee equal to six percent (6%) of any Scheduled Payment not paid when due. 
 (h) Default Rate. Borrower shall pay interest at a per annum rate equal to the Default Rate on any amounts required to be paid by Borrower under this Agreement or the other Loan Documents
(including Scheduled Payments), payable with respect to each Loan, accrued and unpaid interest, and any fees or other amounts which remain unpaid after such amounts are due. If an Event of Default has occurred and the Obligations have been
accelerated (whether automatically or by Lender’s election), Borrower shall pay interest on the aggregate, outstanding accelerated balance hereunder from the date of the Event of Default until all Events of Default are cured, at a per annum
rate equal to the Default Rate. 

  
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 2.3 Prepayments. 

(a) Mandatory Prepayment Upon an Acceleration. If a Loan is accelerated following the occurrence of an Event of Default pursuant
to Section 9.1(a) hereof, then Borrower, in addition to any other amounts which may be due and owing hereunder, shall immediately pay to Lender the amount set forth in Section 2.3(b) below, as if the Borrower had opted to prepay on the
date of such acceleration. 
 (b) Upon ten (10) Business Days’ prior written notice to Lender, Borrower may, at its
option, at any time, prepay all of the Loans by paying to Lender an amount equal to (i) any accrued and unpaid interest on the outstanding principal balance of each Loan; (ii) an amount equal to (A) if the Loan is prepaid within
twelve (12) months from the applicable Funding Date thereof, three percent (3%) of the then outstanding principal balance of such Loan, (B) if the Loan is prepaid more than twelve (12) months from the applicable Funding Date
thereof but less than twenty-four (24) months from the applicable Funding Date thereof, two (2%) percent of the then outstanding principal balance of such Loan, or (C) if the Loan is prepaid more than twenty-four (24) months from
the applicable Funding Date thereof, one percent (1%) of the then outstanding principal balance of such Loan; (iii) the outstanding principal balance of each Loan and (iv) all other sums, if any, that shall have become due and payable
hereunder. 
 2.4 Other Payment Terms. 
 (a) Place and Manner. Borrower shall make all payments due to Lender in lawful money of the United States. All payments of principal, interest, fees and other amounts payable by Borrower hereunder
shall be made, in immediately available funds, not later than 10:00 a.m. Connecticut time, on the date on which such payment is due. Borrower shall make such payments to Lender via wire transfer or ACH as follows: 

 

					
	Payment via wire transfer or ACH	  		  	
	to Lender:	  		  	
	Credit:	  	Horizon Technology Finance Corporation	  	
	Bank Name:	  		  	
	Bank Address:	  		  	
	Account No.:	  		  	
	ABA Routing No.:	  		  	
	Reference:	  	Enphase Invoice #	  	

 (b) Date. Whenever any payment is due hereunder on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest or fees, as the case may be. 
 2.5 Procedure for Making the Loans. 
 (a) Notice. Borrower shall
notify Lender of the date on which Borrower desires Lender to make an Advance at least five (5) Business Days in advance of the desired Funding Date, unless Lender elects at its sole discretion to allow the Funding Date to be within five
(5) Business Days of Borrower’s notice. Borrower’s execution and delivery to Lender of a 

  
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Note shall be Borrower’s agreement to the terms and calculations thereunder with respect to the Advance made by Lender. Lender’s obligation to make any Advance shall be expressly
subject to the satisfaction of the conditions set forth in Section 3. 
 (b) Loan Rate Calculation. Prior to
the Funding Date, Lender shall establish the Loan Rate with respect to the applicable Advance, which shall be set forth in the Note to be executed by Borrower with respect to such Advance and shall be conclusive in the absence of a manifest error.

 (c) Disbursement. Lender shall disburse the proceeds of each Loan by wire transfer to Borrower at the account
specified in the Funding Certificate for such Loan. 
 2.6 Good Faith Deposit; Legal and Closing Expenses: and Commitment
Fee. 
 (a) Good Faith Deposit. Borrower has delivered to Lender a good faith deposit in the amount of Fifty
Thousand Dollars ($50,000) (the “Good Faith Deposit”). Twenty-Five Thousand Dollars ($25,000) of the Good Faith Deposit was paid by Lender in connection with the making of Advance (Loan A), and Twenty-Five Thousand Dollars ($25,000)
of the Good Faith Deposit will be tendered by Borrower to Lender in connection with the making of Advance (Loan B). The Good Faith Deposit will be credited to the amounts due Lender under Section 2.6(b) below. If the Funding Date does not
occur, Lender shall retain the Good Faith Deposit as compensation for its time, expenses and opportunity cost. 
 (b) Legal,
Due Diligence and Documentation Expenses. Lender and Borrower-acknowledge that Borrower has previously paid to Lender Twenty Thousand Dollars ($20,000) in connection with Lender’s legal, due diligence and documentation expenses incurred in
connection with the making of Advance (Loan A). Concurrently with its execution and delivery of this Agreement, Borrower shall pay to Lender Lender’s legal, due diligence and documentation expenses incurred in connection with the making of the
Advance (Loan B) and the Advance (Loan C) in an additional amount not to exceed Twenty Thousand Dollars ($20,000) without Borrower’s prior written consent. 
 (c) Commitment Fee. Borrower and Lender acknowledge that Borrower has previously paid to Lender a commitment fee of Seventy Thousand Dollars ($70,000) in connection with the making of Advance (Loan
A). In addition to the previously tendered commitment fee, Borrower shall pay Lender concurrently with its execution and delivery of this Agreement an additional commitment fee in the amount of Fifty Thousand Dollars ($50,000) (the
“Commitment Fee”). The Commitment Fee shall be retained by Lender and be deemed fully earned upon receipt. 

3. Conditions of Loans. 
 3.1 Conditions Precedent to Closing. At the time of the execution and delivery of this Agreement, Lender shall have received, in form and substance reasonably satisfactory to Lender, all of the
following (unless Lender has agreed to waive such condition or document, in which case such condition or document shall be a condition precedent to the making of the applicable Advance by Lender and shall be deemed added to Section 3.2
or Section 3.3 as applicable): 

  
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 (a) Loan Agreement. This Agreement duly executed by Borrower and Lender. 

(b) Secretary’s Certificate. A certificate of the secretary or assistant secretary of Borrower with copies of the following
documents attached: (i) the certificate of incorporation and bylaws of Borrower certified by Borrower as being complete and in full force and effect on the date thereof, (ii) incumbency and representative signatures, and
(iii) resolutions authorizing the execution and delivery of this Agreement and each of the other Loan Documents. 
 (c)
Good Standing Certificates. A good standing certificate from Borrower’s state of incorporation and the state in which Borrower’s principal place of business is located, each dated as of a recent date. 

(d) Certificate of Insurance. Evidence of the insurance coverage required by Section 6.8 of this Agreement.

 (e) Consents. All necessary consents of shareholders and other third parties with respect to the execution, delivery
and performance of this Agreement, the Warrants and the other Loan Documents. 
 (f) Legal Opinion. A legal opinion of
Borrower’s counsel in form satisfactory to Lender, in substantially the form attached as Exhibit D hereto. 
 (g)
Account Control Agreements. Account Control Agreements for all of Borrower’s deposit accounts and accounts holding securities, except for the Italian Account, the French Account and the Bank of the West Account, duly executed by all of
the parties thereto, in the forms provided by or reasonably acceptable to Lender. 
 (h) Other Documents. Such other
documents and completion of such other matters, as Lender may reasonably deem necessary or appropriate. 
 3.2 Conditions
Precedent to Making the Advance (Loan A). The obligation of Lender to make Advance (Loan A) is further subject to the following conditions: 
 (a) No Default. No Default or Event of Default shall have occurred and be continuing. 
 (b) Landlord Agreements. Borrower shall have provided Lender with a Landlord Agreement for each location where Borrower’s books and records and the Collateral are located (unless Borrower is
the fee owner thereof). 
 (c) Note. Borrower shall have duly executed and delivered to Lender a Note in the amount of
Advance (Loan A). 
 (d) UCC Financing Statements. Lender shall have received such documents, instruments and
agreements, including UCC financing statements or amendments to UCC financing statements, as Lender shall reasonably request to evidence the perfection and priority of the security interests granted to Lender pursuant to Section 4.
Borrower authorizes 

  
 - 17 -

 
Lender to file any UCC financing statements, continuations of or amendments to UCC financing statements it deems necessary to perfect its security interest in the Collateral. 

(e) Funding Certificate. Borrower shall have duly executed and delivered to Lender a Funding Certificate for Advance (Loan A).

 (f) Intercreditor Agreement. An Intercreditor Agreement with respect to the Indebtedness constituting Permitted
Indebtedness under subsection (d) of the definition of Permitted Indebtedness, executed by the lender providing such Indebtedness. 
 (g) Warrant. Borrower shall have executed and delivered to Lender the Loan A Warrant. 
 (h) Other Documents. Such other documents and completion of such other matters, as Lender may reasonably deem necessary or appropriate. 

3.3 Condition to the Advance (Loan B). In addition to the conditions set forth in Sections 3.1 and 3.2 above, Borrower agrees that
it shall not request, and Lender shall have no obligation to make, Advance (Loan B) until: 
 (a) Loan A. Lender has
made Advance (Loan A). 
 (b) Loan B Warrant. Borrower shall have executed and delivered to Lender the Loan B Warrant.

 (c) Other Documents. Borrower shall have executed and delivered to Lender such other documents, and completed such
other matters, as Lender may reasonably deem necessary or appropriate. 
 3.4 Condition to the Advance (Loan C). In
addition to the conditions set forth in Sections 3.1, 3.2 and 3.3 above, Borrower agrees that it shall not request, and Lender shall have no obligation to make, Advance (Loan C) until: 

(a) Loan A. Lender has made Advance (Loan A). 
 (b) Loan B. Lender has made Advance (Loan B). 
 (c) Other
Documents. Borrower shall have executed and delivered to Lender such other documents, and completed such other matters, as Lender may reasonably deem necessary or appropriate. 

3.5 Covenant to Deliver. Borrower agrees (not as a condition but as a covenant) to deliver to Lender each item required to be
delivered to Lender as a condition to each Advance, if such Advance is advanced. Borrower expressly agrees that the extension of such Advance prior to the receipt by Lender of any such item shall not constitute a waiver by Lender of Borrower’s
obligation to deliver such item, and any such extension in the absence of a required item shall be in Lender’s sole discretion. 

  
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 4. Creation of Security Interest. 

4.1 Grant of Security Interest. Borrower grants to Lender a valid and continuing security interest in all presently existing and
hereafter acquired or arising Collateral in order to secure prompt, full and complete payment of any and all Obligations (other than the Warrant and inchoate indemnity obligations) and in order to secure prompt, full and complete performance by
Borrower of each of its covenants and duties under each of the Loan Documents (other than the Warrant). The “Collateral” shall mean and include all right, title, interest, claims and demands of Borrower in and to all personal
property of Borrower, including without limitation, all of the following: 
 (a) All goods (and embedded computer programs and
supporting information included within the definition of “goods” under the Code) and equipment now owned or hereafter acquired, including, without limitation, all laboratory equipment, computer equipment, office equipment, machinery,
fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located;

 (b) All inventory now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts,
supplies, packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returns upon any accounts or other proceeds,
including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Borrower’s books relating to any of the foregoing; 

(c) All contract rights and general intangibles (except to the extent included within the definition of Intellectual Property), now
owned or hereafter acquired, including, without limitation, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, software, computer programs, computer disks,
computer tapes, literature, reports, catalogs, design rights, income tax refunds, payment intangibles, commercial tort claims, payments of insurance and rights to payment of any kind; 

(d) All now existing and hereafter arising accounts, contract rights, royalties, license rights, license fees and all other forms of
obligations owing to Borrower arising out of the sale or lease of goods, the licensing of technology or the rendering of services by Borrower (subject, in each case, to the contractual rights of third parties to require funds received by Borrower to
be expended in a particular manner), whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s books relating
to any of the foregoing; 
 (e) All documents, cash, deposit accounts, letters of credit (whether or not the letter of credit
is evidenced by a writing), certificates of deposit, instruments, promissory notes, chattel paper (whether tangible or electronic) and investment property, including, without limitation, all securities, whether certificated or uncertificated,
security entitlements, securities 

  
 - 19 -

 
accounts, commodity contracts and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter acquired and Borrower’s
books relating to the foregoing; 
 (f) Any and all claims, rights and interests in any of the above and all substitutions for,
additions and accessions to and proceeds thereof, including, without limitation, insurance, condemnation, requisition or similar payments and proceeds of the sale or licensing of Intellectual Property to the extent such proceeds no longer constitute
Intellectual Property; and 
 (g) Notwithstanding the foregoing, the Collateral shall not include any Intellectual Property;
provided, however, that the Collateral shall include all accounts receivables, accounts, and general intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in,
the foregoing (the “Rights to Payment”). Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a
security interest in the Rights to Payment, then the Collateral shall automatically, and effective as of the date hereof, include the Intellectual Property to the extent necessary to permit perfection of Lender’s security interest in the Rights
to Payment. 
 Notwithstanding the foregoing, the term “Collateral” shall not include (A) equipment identified on
Annex I hereto, or (B) or rights of Borrower as a licensee; in each case of (A) and (B) to the extent the granting of a security interest therein (i) would be contrary to applicable law or (ii) is prohibited by or would
constitute a default under any agreement or document governing such property (but only to the extent such prohibition is enforceable under applicable law); provided that upon the termination or lapsing of any such prohibition, such property shall
automatically be part of the Collateral; and provided further that the provisions of this paragraph shall in no case exclude from the definition of “Collateral” any Accounts, proceeds of the disposition of any property, or general
intangibles consisting of rights to payment, all of which shall at all times constitute “Collateral”; and provided further that any Equipment financed by Lender will at all times constitute “Collateral”. 

4.2 After-Acquired Property. If Borrower shall at any time acquire a commercial tort claim, as defined in the Code, Borrower shall
immediately notify Lender in writing signed by Borrower of the brief details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form
and substance satisfactory to Lender. 
 4.3 Duration of Security Interest. Lender’s security interest in the
Collateral shall continue until the payment in full and the satisfaction of all Obligations (other than inchoate indemnity obligations) and termination of Lender’s commitment to fund the Loans, whereupon such security interest shall terminate.
Lender shall, at Borrower’s sole cost and expense, execute such further documents and take such further actions as may be reasonably necessary to make effective the release contemplated by this Section 4.3, including duly
authorizing and delivering termination statements for filing in all relevant jurisdictions under the Code. 

  
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 4.4 Location and Possession of Collateral. Other than for Borrower’s personal
property located at Flextronics and for Transfers permitted under Section 7.4, the Collateral is and shall remain in the possession of Borrower at its location listed on the cover page hereof or as set forth in the Disclosure Schedule. Borrower
shall remain in full possession, enjoyment and control of the Collateral (except only as may be otherwise required by Lender for perfection of its security interest therein) and so long as no Event of Default has occurred, shall be entitled to
manage, operate and use the same and each part thereof with the rights and franchises appertaining thereto; provided that the possession, enjoyment, control and use of the Collateral shall at all time be subject to the observance and
performance of the terms of this Agreement. 
 4.5 Delivery of Additional Documentation Required. Borrower shall from
time to time execute and deliver to Lender, at the request of Lender, all financing statements and other documents Lender may reasonably request, in form satisfactory to Lender, to perfect and continue Lender’s perfected security interests in
the Collateral and in order to consummate fully all of the transactions contemplated under the Loan Documents. 
 4.6 Right
to Inspect. Lender (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours, to inspect Borrower’s books and records and to make
copies thereof and to inspect, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to, the Collateral. 

4.7 Protection of Intellectual Property. Borrower shall (i) protect, defend and maintain the validity and enforceability of
its Intellectual Property to the extent Borrower deems it appropriate to do so in its reasonable business judgment and promptly advises Lender in writing of material infringements, and (ii) not allow any Intellectual Property material to
Borrower’s business to be abandoned, forfeited or dedicated to the public without Lender’s written consent. 
 4.8
Lien Subordination. Lender agrees that the Liens granted to it hereunder shall be subordinate to the Liens to secure the Indebtedness permitted under clause (d) of the definition of Permitted Indebtedness. So long as no Event of Default
has occurred, Lender agrees to execute and deliver such agreements and documents as may be reasonably requested by Borrower from time to time which set forth the lien subordination described in this Section 4.8 and are reasonably
acceptable to Lender. 
 5. Representations and Warranties. Except as set forth in the Disclosure Schedule, Borrower
represents and warrants as follows: 
 5.1 Organization and Qualification. Borrower is a corporation duly organized and
validly existing under the laws of its state of incorporation and qualified and licensed to do business in, and is in good standing in, any state in which the conduct of its business or its ownership of Property requires that it be so qualified or
in which the Collateral is located, except for such states as to which any failure to so qualify would not have a material adverse effect on Borrower. 

  
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 5.2 Authority. Borrower has all necessary power and authority to execute, deliver,
and perform in accordance with the terms thereof, the Loan Documents to which it is a party. Borrower has all requisite power and authority to own and operate its Property and to carry on its businesses as now conducted. Borrower has obtained all
licenses, permits, approvals and other authorizations necessary for the operation of its business. 
 5.3 Conflict with Other
Instruments, etc. Neither the execution and delivery of any Loan Document to which Borrower is a party nor the consummation of the transactions therein contemplated nor compliance with the terms, conditions and provisions thereof will conflict
with or result in a breach of any of the terms, conditions or provisions of the certificate of incorporation, the by-laws, or any other organizational documents of Borrower or any law or any regulation, order, writ, injunction or decree of any court
or governmental instrumentality or any material agreement or instrument to which Borrower is a party or by which it or any of its Property is bound or to which it or any of its Property is subject, or constitute a default thereunder or result in the
creation or imposition of any Lien, other than Permitted Liens. 
 5.4 Authorization; Enforceability. The execution and
delivery of this Agreement, the granting of the security interest in the Collateral, the incurring of the Loans, the execution and delivery of the other Loan Documents to which Borrower is a party and the consummation of the transactions herein and
therein contemplated have each been duly authorized by all necessary action on the part of Borrower. No authorization, consent, approval, license or exemption of, and no registration, qualification, designation, declaration or filing with, or notice
to, any Person is, was or will be necessary to (i) the valid execution and delivery of any Loan Document to which Borrower is a party, (ii) the performance of Borrower’s obligations under any Loan Document, or (iii) the granting
of the security interest in the Collateral, except for filings in connection with the perfection of the security interest in any of the Collateral or the issuance of the Warrant. The Loan Documents have been duly executed and delivered and
constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws of general application relating
to or affecting the enforcement of creditors’ rights or by general principles of equity. 
 5.5 No Prior
Encumbrances. Borrower has good and marketable title to the Collateral, free and clear of Liens except for Permitted Liens. Borrower has good title and ownership of, or is licensed under, all of Borrower’s current Intellectual Property.
Borrower has not received any communications alleging that Borrower has violated, or by conducting its business as proposed, would violate any proprietary rights of any other Person. Borrower has no knowledge of any infringement or violation by it
of the intellectual property rights of any third party and has no knowledge of any violation or infringement by a third party of any of its Intellectual Property. The Collateral and the Intellectual Property constitute substantially all of the
assets and property of Borrower. 
 5.6 Name; Location of Chief Executive Office, Principal Place of Business and
Collateral. Except as set forth on the Disclosure Schedule, Borrower has not done business under any name other than that specified on the signature page hereof. Borrower’s jurisdiction of incorporation, chief executive office, principal
place of business, and the place where Borrower maintains its records concerning the Collateral are presently located in the state and at 

  
 - 22 -

 
the address set forth on the cover page of this Agreement. The Collateral is presently located at the address set forth on the cover page hereof or as set forth in the Disclosure Schedule.

 5.7 Litigation. There are no actions or proceedings pending by or against Borrower before any court or administrative
agency in which an adverse decision could have a material adverse effect on Borrower or the aggregate value of the Collateral. Borrower does not have knowledge of any such pending or threatened actions or proceedings. 

5.8 Financial Statements. All financial statements relating to Borrower or any Affiliate that have been or may hereafter be
delivered by Borrower to Lender present fairly in all material respects Borrower’s financial condition as of the date thereof and Borrower’s results of operations for the period then ended. 

5.9 No Material Adverse Effect. No event has occurred and no condition exists which could reasonably be expected to have a
material adverse effect on the financial condition, business or operations of Borrower since December 31, 2009. 
 5.10
Full Disclosure. No representation, warranty or other statement made by Borrower in any Loan Document (including the Disclosure Schedule), certificate or written statement furnished to Lender contains any untrue statement of a material fact
or omits to state a material fact necessary in order to make the statements contained in such certificates or statements not misleading. There is no fact known to Borrower which materially adversely affects, or which could in the future be
reasonably expected to materially adversely affect, its ability to perform its obligations under this Agreement. 
 5.11
Solvency, Etc. Borrower is Solvent (as defined below) and, after the execution and delivery of the Loan Documents and the consummation of the transactions contemplated thereby, Borrower will be Solvent. “Solvent” means, with
respect to any Person on any date, that on such date such Person is able to pay its debts (including trade debts) as they mature. 
 5.12 Subsidiaries. Borrower has no Subsidiaries as of the date hereof and shall have no subsidiaries after the date hereof, except subsidiaries for which Borrower obtained Lender’s prior
written consent (which consent shall not be unreasonably withheld, conditioned or delayed). 
 5.13 Catastrophic Events:
Labor Disputes. Neither Borrower nor its properties is or has been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or other casualty that could reasonably
be expected to have a material adverse effect on the financial condition, business or operations of Borrower. There are no disputes presently subject to grievance procedure, arbitration or litigation under any of the collective bargaining
agreements, employment contracts or employee welfare or incentive plans to which Borrower is a party, and there are no strikes, lockouts, work stoppages or slowdowns, or, to the knowledge of Borrower, jurisdictional disputes or organizing activity
occurring or threatened which could reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower. 

  
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 5.14 Certain Agreements of Officers. Employees and Consultants. 

(a) No Violation. To the knowledge of Borrower, no officer, employee or consultant of Borrower is, or is now expected to be, in
violation of any term of any employment contract, proprietary information agreement, nondisclosure agreement, noncompetition agreement or any other material contract or agreement or any restrictive covenant relating to the right of any such officer,
employee or consultant to be employed by Borrower because of the nature of the business conducted or to be conducted by Borrower or relating to the use of trade secrets or proprietary information of others, and to Borrower’s knowledge, the
continued employment of Borrower’s officers, employees and consultants does not subject Borrower to any material liability for any claim or claims arising out of or in connection with any such contract, agreement, or covenant. 

(b) No Present Intention to Terminate. To the knowledge of Borrower, no officer of Borrower, and no employee or consultant of
Borrower whose termination, either individually or in the aggregate, could reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower, has any present intention of terminating his or her
employment or consulting relationship with Borrower. 
 6. Affirmative Covenants. Borrower, until the full and complete
payment of the Obligations (other than inchoate indemnity obligations), covenants and agrees that: 
 6.1 Good Standing.
Borrower shall maintain its corporate existence and its good standing in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a material adverse
effect on the financial condition, operations or business of Borrower. Borrower shall maintain in force all licenses, approvals and agreements, the loss of which could reasonably be expected to have a material adverse effect on its financial
condition, operations or business. 
 6.2 Government Compliance. Borrower shall comply with all statutes, laws,
ordinances and government rules and regulations to which it is subject, noncompliance with which could reasonably be expected to materially adversely affect the financial condition, operations or business of Borrower. 

6.3 Financial Statements. Reports, Certificates. Borrower shall deliver to Lender: (a) as soon as available, but in any event
within thirty (30) days after the end of each month, a company prepared balance sheet, income statement and cash flow statement covering Borrower’s operations during such period, certified by Borrower’s president, controller or chief
financial officer (each, a “Responsible Officer”); (b) as soon as available, but in any event within one hundred eighty (180) days after the end of Borrower’s fiscal year commencing with Borrowers’ fiscal year
2010, audited financial statements of Borrower prepared in accordance with GAAP, together with an unqualified opinion (other than a qualification for a going concern) on such financial statements of a nationally recognized or other independent
public accounting firm reasonably acceptable to Lender; (c) as soon as available, but in any event within ninety (90) days after the end of Borrower’s fiscal year or the date of Borrower’s board of directors’ adoption,
Borrower’s operating budget and plan for the next fiscal year and (d) such other financial information as Lender may reasonably request from time to time. From and 

  
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after such time as Borrower becomes a publicly reporting company, promptly as they are available and in any event: (x) at the time of filing of Borrower’s Form 10-K with the Securities
and Exchange Commission after the end of each fiscal year of Borrower, the financial statements of Borrower filed with such Form 10-K; and (y) at the time of filing of Borrower’s Form 10-Q with the Securities and Exchange Commission after
the end of each of the first three fiscal quarters of Borrower, the financial statements of Borrower filed with such Form 10-Q. In addition, Borrower shall deliver to Lender (i) promptly upon becoming available, copies of all statements,
reports and notices sent or made available generally by Borrower to its security holders; and (ii) immediately upon receipt of notice thereof, a report of any material legal actions pending or threatened against Borrower or the commencement of
any action, proceeding or governmental investigation involving Borrower is commenced that is reasonably expected to result in damages or costs to Borrower of Two Hundred Fifty Thousand Dollars ($250,000). 

6.4 Certificates of Compliance. Each time financial statements are furnished pursuant to Section 6.3 above, Borrower
shall deliver to Lender an Officer’s Certificate signed by a Responsible Officer in the form of, and certifying to the matters set forth in Exhibit E hereto. 
 6.5 Notice of Defaults. As soon as possible, and in any event within five (5) days after the discovery of an Event of Default, Borrower shall provide Lender with an Officer’s Certificate
setting forth the facts relating to or giving rise to such Event of Default and the action which Borrower proposes to take with respect thereto. 
 6.6 Taxes. Borrower shall make due and timely payment or deposit of all federal, state, and local taxes, assessments, or contributions required of it by law or imposed upon any Property belonging
to it, and will execute and deliver to Lender, on demand, appropriate certificates attesting to the payment or deposit thereof; and Borrower will make timely payment or deposit of all tax payments and withholding taxes required of it by applicable
laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Lender with proof satisfactory to Lender indicating that Borrower has made such payments or
deposits; provided that Borrower need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings which suspend the collection thereof (provided that such
proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of Collateral or Collateral which in the aggregate is material to Borrower and that Borrower has adequately bonded such amounts or reserves
sufficient to discharge such amounts have been provided on the books of Borrower). 
 6.7 Use; Maintenance. Borrower
shall keep and maintain all items of equipment and other similar types of personal property that form any significant portion or portions of the Collateral in good operating condition and repair and shall make all necessary replacements thereof and
renewals thereto so that the value and operating efficiency thereof shall at all times be maintained and preserved. Borrower shall not permit any such material item of Collateral to become a fixture to real estate or an accession to other personal
property, without the prior written consent of Lender. Borrower shall not permit any such material item of Collateral to be operated or maintained in violation of any applicable law, statute, rule or regulation. With respect to items of leased
equipment (to the extent Lender has any security interest in any 

  
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residual Borrower’s interest in such equipment under the lease), Borrower shall keep, maintain, repair, replace and operate such leased equipment in accordance with the terms of the
applicable lease. 
 6.8 Insurance. Borrower shall keep its business and the Collateral insured for risks and in amounts,
as Lender may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Lender. All property policies shall have a lender’s loss payable endorsement showing Lender as an additional loss
payee and all liability policies shall show Lender as an additional insured. Borrower shall provide Lender at least twenty (20) days notice before cancellation of its insurance policies. At Lender’s request, Borrower shall deliver
certified copies of policies and evidence of all premium payments. Proceeds payable under any property policy shall, at Lender’s option, be payable to Lender on account of the Obligations. Notwithstanding the foregoing, so long as no Event of
Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any property policy, toward the replacement or repair of destroyed or damaged property; provided that (i) any such replaced or repaired property
(a) shall be of equal or like value as the replaced or repaired Collateral and (b) shall be deemed Collateral in which Lender has been granted a first priority security interest and (ii) after the occurrence and during the
continuation of an Event of Default all proceeds payable under such property policy shall, at the option of Lender, be payable to Lender, on account of the Obligations. If Borrower fails to obtain insurance as required under Section 6.8 or to
pay any amount or furnish any required proof of payment to third persons and Lender, Lender may make all or part of such payment or obtain such insurance policies required in Section 6.8, and take any action under the policies Lender deems
prudent. On or prior to the first Funding Date and prior to each policy renewal, Borrower shall furnish to Lender certificates of insurance or other evidence satisfactory to Lender that insurance complying with all of the above requirements is in
effect. 
 6.9 Security Interest. Assuming the proper filing of one or more financing statement(s) identifying the
Collateral with the proper state and/or local authorities, the security interests in the Collateral granted to Lender pursuant to this Agreement (i) constitute and will continue to constitute first priority security interests (except to the
extent any Permitted Liens may have a superior priority to Lender’s Lien under this Agreement) and (ii) are and will continue to be superior and prior to the rights of all other creditors of Borrower (except to the extent of such Permitted
Liens). 
 6.10 Further Assurances. At any time and from time to time Borrower shall execute and deliver such further
instruments and take such further action as may reasonably be requested by Lender to make effective the purposes of this Agreement, including without limitation, the continued perfection and priority of Lender’s security interest in the
Collateral. 
 6.11 Subsidiaries. Borrower, upon Lender’s reasonable request, shall cause any Subsidiary of Borrower
to provide Lender with a guaranty of the Obligations and a security interest in such Subsidiary’s assets to secure such guaranty. 
 7. Negative Covenants. Borrower, until the full and complete payment of the Obligations (other than inchoate indemnity obligations), covenants and agrees that Borrower shall not without
Lender’s prior written consent, which shall not be unreasonably withheld: 

  
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 7.1 Chief Executive Office. Change its name, jurisdiction of incorporation, chief
executive office, principal place of business or any of the items set forth in Section 1 of the Disclosure Schedule without thirty (30) days prior written notice to Lender. Lender acknowledges receipt of notice that as of the date of this
Agreement Borrower intends to relocate its principal place of business on or about August 15, 2011 to 18 South McDowell, Petaluma, California. 
 7.2 Collateral Control. Subject to its rights under Section 4.4 and other than for Transfers permitted under Section 7.4, remove any items of Collateral from Borrower’s
facility located at the address set forth on the cover page hereof or as set forth on the Disclosure Schedule. 
 7.3
Liens. Create, incur, assume or suffer to exist any Lien of any kind upon any of Borrower’s Property, whether now owned or hereafter acquired, except Permitted Liens. 

7.4 Other Dispositions of Collateral. Convey, sell, lease or otherwise dispose of all or any part of the Collateral to any Person
(collectively, a “Transfer”), except for: (i) Transfers of inventory in the ordinary course of business; (ii) Transfers of worn-out or obsolete equipment; (iii) Transfers permitted under subclause (f) of the
definition of Permitted Liens with respect to Collateral, (iv) Transfers in connection with Permitted Liens and Permitted Investments; or (v) Transfers that are not otherwise permitted under this Section 7.4 in an amount not to exceed
Two Hundred Fifty Thousand Dollars ($100,000) in the aggregate in any fiscal year. 
 7.5 Distributions. (i) Pay any
dividends or make any distributions on its Equity Securities; (ii) purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Securities (other than repurchases pursuant to the terms of employee stock purchase plans,
employee restricted stock agreements or similar arrangements in an aggregate amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000)); (iii) return any capital to any holder of its Equity Securities as such; (iv) make any
distribution of assets, Equity Securities, obligations or securities to any holder of its Equity Securities as such; or (v) set apart any sum for any such purpose; provided, however. Borrower may pay dividends payable solely in
Borrower’s common stock. 
 7.6 Mergers or Acquisitions. Merge or consolidate with or into any other Person (other
than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower) or acquire all or substantially all of the capital stock or assets of another. 
 7.7 Change in Ownership. Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower or reasonably related thereto or have a
material change in its ownership of greater than forty nine percent (49%) (other than by the sale by Borrower of Borrower’s Equity Securities in a public offering or to venture capital investors so long as Borrower identifies to Lender the
venture capital investors prior to the closing of the investment). 
 7.8 Transactions With Affiliates/Subsidiaries.
(a) Enter into any contractual obligation with any Affiliate or engage in any other transaction with any Affiliate except (i) 

  
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upon terms at least as favorable to Borrower as an arms-length transaction with Persons who are not Affiliates of Borrower or are otherwise approved by the disinterested members of
Borrower’s board of directors, and (ii) Borrower’s sale of equity and debt securities (provided that such debt securities are Subordinated Debt) to venture capital or other strategic investors or (b) create a Subsidiary, unless,
at Lender’s election, such Subsidiary guarantees the Obligations and grants a security interest in its assets to secure such guaranty, provided that Lender further agrees not to unreasonably withhold, condition or delay its consent to the
creation of a Subsidiary. 
 7.9 Indebtedness Payments. (i) Prepay, redeem, purchase, defease or otherwise satisfy
in any manner prior to the scheduled repayment thereof any Indebtedness for borrowed money or lease obligations (other than (i) Indebtedness or lease obligations in an aggregate amount not to exceed $250,000 per fiscal year, (ii) amounts
due or permitted to be prepaid under this Agreement, or (iii) Permitted Indebtedness including without limitation under any revolving credit agreement constituting Permitted Indebtedness under clause (d) of the definition of Permitted
Indebtedness and Indebtedness owing to Atel Ventures, Inc. (collectively, the “Excluded Indebtedness”)), (ii) amend, modify or otherwise change the terms of any Indebtedness for borrowed money or lease obligations (other than Excluded
Indebtedness) so as to accelerate the scheduled repayment thereof or (iii) repay any notes to officers, directors or shareholders other than converting any such notes into equity securities of the company. 

7.10 Indebtedness. Create, incur, assume or permit to exist any Indebtedness except Permitted Indebtedness. 

7.11 Investments. Make any Investment except for Permitted Investments. 

7.12 Compliance. Become an “investment company” or a company controlled by an “investment company” under the
Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Loan for that purpose; fail to meet the minimum funding requirements of the Employment
Retirement Income Security Act of 1974, and its regulations, as amended from time to time (“ERISA”), permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor
Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business or operations or could reasonably be expected to cause a material adverse change, or
permit any of its Subsidiaries to do so. 
 7.13 Maintenance of Accounts. (i) Maintain any deposit account or
account holding securities owned by Borrower except (a) accounts with the lender providing Borrower with Indebtedness permitted under subsection (d) of the definition of Permitted Indebtedness or (b) accounts with respect to which
Lender is able to take such actions as it deems necessary to obtain a perfected security interest in such accounts through one or more Account Control Agreements; or (ii) grant or allow any other Person (other than Lender) to perfect a security
interest in, or enter into any agreements with any Persons (other than Lender) accomplishing perfection via control as to any of its deposit accounts or accounts holding securities other than in favor of the lender providing Borrower with
Indebtedness permitted under subsection (d) of 

  
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the definition of Permitted Indebtedness. Notwithstanding the foregoing, Borrower may maintain: (1) a deposit account at
            , account number (the “Italian Account”), (2) a deposit account with having account number (the “French Account” and collectively with the
Italian Account, the “Foreign Accounts”) and (3) a deposit account with             , having an account number of (the “Account”), provided that
(x) less than One Million Euros (€ 1,000,000) in the aggregate is maintained by the Borrower in the Foreign Accounts and (y) less than Five Thousand Dollars ($5,000) is maintained by the Borrower in the
             Account. 
 7.14 Negative Pledge Regarding
Intellectual Property. Create, incur, assume or suffer to exist any Lien of any kind upon any Intellectual Property or Transfer any Intellectual Property (other than for Transfers permitted under subclause (f) of the definition of Permitted
Liens), whether now owned or hereafter acquired. 
 7.15 Inventory and Equipment. Store Inventory or Equipment with an
aggregate value in excess of Fifty Thousand Dollars ($50,000) with a bailee, warehouseman, or other third party other than Flextronics (international or domestic locations) unless the third party has been notified of Lender’s security interest
and Lender (a) has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Lender’s benefit or (b) is in pledge possession of the warehouse receipt, where negotiable, covering
such Inventory or Equipment. Store or maintain any Equipment or Inventory with an aggregate value in excess of Fifty Thousand Dollars ($50,000) at a location other than at Flextronics (international or domestic locations) or the location set forth
in Section 10 of this Agreement. Notwithstanding the foregoing, Borrower may maintain up to One Million Dollars ($1,000,000) in raw materials in transit (from Borrower’s supplier(s) to Flextronics’ manufacturing facility in China),
without complying with (a) or (b), above. 
 8. Events of Default. Any one or more of the following events shall
constitute an “Event of Default” by Borrower under this Agreement: 
 8.1 Failure to Pay. If Borrower
fails to pay when due and payable or when declared due and payable in accordance with the Loan Documents: (i) any Scheduled Payment on the relevant Payment Date or on the relevant Maturity Date, or (ii) any other portion of the Obligations
within five (5) days after receipt of written notice from Lender that such payment is due. 
 8.2 Certain Covenant
Defaults. If Borrower fails to perform any obligation under violates any of the covenants contained in Section 7 of this Agreement. 
 8.3 Other Covenant Defaults. If Borrower fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant, or agreement contained in this Agreement (other than
as set forth in Sections 8.1. 8.2 or 8.4 through 8.13). in any of the other Loan Documents and Borrower has failed to cure such default within fifteen (15) days of the occurrence of such default. During this fifteen (15) day period,
the failure to cure the default is not an Event of Default (but no Loan will be made during the cure period). 

  
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 8.4 Intentionally Omitted. 

8.5 Seizure of Assets, Etc. If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress
warrant, or is levied upon, or comes into the possession of any trustee, receiver or Person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten
(10) days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any
material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the United States Government, or any department, agency, or instrumentality thereof, or by
any state, county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof; provided that none of the foregoing shall constitute an Event of Default where such action
or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower. 
 8.6 Service of
Process. The service of process upon Lender seeking to attach by a trustee or other process any funds of the Borrower on deposit or otherwise held by Lender, or the delivery upon Lender of a notice of foreclosure by any Person seeking to attach
or foreclose on any funds of the Borrower on deposit or otherwise held by Lender, or the delivery of a notice of foreclosure or exclusive control to any entity holding or maintaining Borrower’s deposit accounts or accounts holding securities by
any Person (other than Lender) seeking to foreclose or attach any such accounts or securities. 
 8.7 Default on
Indebtedness. One or more defaults shall exist under any agreement with any third party or parties which consists of the failure to pay any Indebtedness at maturity or which results in a right by such third party or parties, whether or not
exercised, to accelerate the maturity of Indebtedness in an aggregate amount in excess of Two Hundred Fifty Thousand Dollars ($250,000) provided, however, that the Event of Default under this Section 8.7 caused by the occurrence of a default
under such other agreement shall be cured or waived for purposes of this Agreement upon Lender receiving written notice from the party asserting such default of such cure or waiver of the default under such other agreement, if at the time of such
cure or waiver under such other agreement (x) Lender has not declared an Event of Default under this Agreement and/or exercised any rights with respect thereto; (y) any such cure or waiver does not result in an Event of Default under any
other provision of this Agreement or any Loan Document; and (z) in connection with any such cure or waiver under such other agreement, the terms of any agreement with such third party are not modified or amended in any manner which could in the
good faith judgment of Lender be materially less advantageous to Borrower or any Subsidiary 
 8.8 Judgments. If a
judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten
(10) days or more. 

  
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 8.9 Misrepresentations. If any material misrepresentation or material misstatement
exists now or hereafter in any warranty, representation, statement, certification, or report made to Lender by Borrower or any officer, employee, agent, or director of Borrower. 

8.10 Intentionally Omitted. 
 8.11 Unenforceable Loan Document. If any Loan Document shall in any material respect cease to be, or Borrower shall assert that any Loan Document is not, a legal, valid and binding obligation of
Borrower enforceable in accordance with its terms. 
 8.12 Involuntary Insolvency Proceeding. If a proceeding shall have
been instituted in a court having jurisdiction in the premises seeking a decree or order for relief in respect of Borrower in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or for the
appointment of a receiver, liquidator, assignee, custodian, trustee (or similar official) of Borrower or for any substantial part of its Property, or for the winding-up or liquidation of its affairs, and such proceeding shall remain undismissed or
unstayed and in effect for a period of forty five (45) consecutive days or such court shall enter a decree or order granting the relief sought in such proceeding. 
 8.13 Voluntary Insolvency Proceeding. If Borrower shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the
entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian (or other similar official) of Borrower or for any
substantial part of its Property, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action in furtherance of any of the foregoing. 

9. Lender’s Rights and Remedies. 
 9.1 Rights and Remedies. Upon the occurrence of any Default or Event of Default, Lender shall not have any further obligation to advance money or extend credit to or for the benefit of Borrower. In
addition, upon the occurrence of an Event of Default, Lender shall have the rights, options, duties and remedies of a secured party as permitted by law and, in addition to and without limitation of the foregoing, Lender may, at its election, without
notice of election and without demand, do any one or more of the following, all of which are authorized by Borrower: 
 (a)
Acceleration of Obligations. Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, including (i) any accrued and unpaid interest, (ii) the amounts which would have otherwise
come due under Section 2.3(b)(ii) if the Loans had been voluntarily prepaid, (iii) the unpaid principal balance of the Loans and (iv) all other sums, if any, that shall have become due and payable hereunder, immediately due and
payable (provided that upon the occurrence of an Event of Default described in Section 8.12 or 8.13 all Obligations shall become immediately due and payable without any action by Lender); 

  
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 (b) Protection of Collateral. Make such payments and do such acts as Lender
considers necessary or reasonable to protect Lender’s security interest in the Collateral. Borrower agrees to assemble the Collateral if Lender so requires and to make the Collateral available to Lender as Lender may designate. Borrower
authorizes Lender and its designees and agents to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any Lien which in Lender’s
determination appears or is claimed to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Lender a license to enter
into possession of such premises and to occupy the same, without charge, for up to one hundred twenty (120) days in order to exercise any of Lender’s rights or remedies provided herein, at law, in equity, or otherwise; 

(c) Preparation of Collateral for Sale. Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for
sale, and sell (in the manner provided for herein) the Collateral. Lender and its agents and any purchasers at or after foreclosure are hereby granted a non-exclusive, irrevocable, perpetual, fully paid, royalty-free license or other right, solely
pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s Intellectual Property, including without limitation, labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks,
service marks, and advertising matter, or any Property of a similar nature, now or at any time hereafter owned or acquired by Borrower or in which Borrower now or at any time hereafter has any rights; provided that such license shall
only be exercisable in connection with the disposition of Collateral upon Lender’s exercise of its remedies hereunder; 

(d) Sale of Collateral. Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or
transactions, for cash or on terms, in such manner and at such places (including Borrower’s premises) as Lender determines are commercially reasonable; and 
 (e) Purchase of Collateral. Credit bid and purchase all or any portion of the Collateral at any public sale. 
 Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower. 
 9.2 Set Off Right. Lender may set off and apply to the Obligations any and all indebtedness at any time owing to or for the credit or the account of Borrower or any other assets of Borrower in
Lender’s possession or control. 
 9.3 Effect of Sale. Upon the occurrence of an Event of Default, to the extent
permitted by law, Borrower covenants that it will not at any time insist upon or plead, or in any manner whatsoever claim or take any benefit or advantage of, any stay or extension law now or at any time hereafter in force, nor claim, take nor
insist upon any benefit or advantage of or from any law now or hereafter in force providing for the valuation or appraisement of the Collateral or any part thereof prior to any sale or sales thereof to be made pursuant to any provision herein
contained, or to the decree, judgment or order of any court of competent jurisdiction; nor, after such sale or sales, claim or exercise any right under any statute now or 

  
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hereafter made or enacted by any state or otherwise to redeem the property so sold or any part thereof, and, to the full extent legally permitted, except as to rights expressly provided herein,
hereby expressly waives for itself and on behalf of each and every Person, except decree or judgment creditors of Borrower, acquiring any interest in or title to the Collateral or any part thereof subsequent to the date of this Agreement, all
benefit and advantage of any such law or laws, and covenants that it will not invoke or utilize any such law or laws or otherwise hinder, delay or impede the execution of any power herein granted and delegated to Lender, but will suffer and permit
the execution of every such power as though no such power, law or laws had been made or enacted. Any sale, whether under any power of sale hereby given or by virtue of judicial proceedings, shall operate to divest all right, title, interest, claim
and demand whatsoever, either at law or in equity, of Borrower in and to the Property sold, and shall be a perpetual bar, both at law and in equity, against Borrower, its successors and assigns, and against any and all Persons claiming the Property
sold or any part thereof under, by or through Borrower, its successors or assigns. 
 9.4 Power of Attorney in Respect of the
Collateral. Borrower does hereby irrevocably appoint Lender (which appointment is coupled with an interest), the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name to file any notices of security
interests, financing statements and continuations and amendments thereof pursuant to the Code or federal law, as may be necessary to perfect, or to continue the perfection of Lender’s security interests in the Collateral. Borrower does hereby
irrevocably appoint Lender (which appointment is coupled with an interest) on the occurrence of an Event of Default, the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name: (a) to ask, demand,
collect, receive, receipt for, sue for, compound and give acquittance for any and all rents, issues, profits, avails, distributions, income, payment draws and other sums in which a security interest is granted under Section 4 with full
power to settle, adjust or compromise any claim thereunder as fully as if Lender were Borrower itself; (b) to receive payment of and to endorse the name of Borrower to any items of Collateral (including checks, drafts and other orders for the
payment of money) that come into Lender’s possession or under Lender’s control; (c) to make all demands, consents and waivers, or take any other action with respect to, the Collateral; (d) in Lender’s discretion to file any
claim or take any other action or proceedings, either in its own name or in the name of Borrower or otherwise, which Lender may reasonably deem necessary or appropriate to protect and preserve the right, title and interest of Lender in and to the
Collateral; (e) endorse Borrower’s name on any checks or other forms of payment or security; (f) sign Borrower’s name on any invoice or bill of lading for any account or drafts against account debtors; (g) make, settle, and
adjust all claims under Borrower’s insurance policies; (h) settle and adjust disputes and claims about the accounts directly with account debtors, for amounts and on terms Lender determines reasonable; (i) transfer the Collateral into
the name of Lender or a third party as the Code permits; and (j) to otherwise act with respect thereto as though Lender were the outright owner of the Collateral. 
 9.5 Lender’s Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then
Lender may do any or all of the following: (a) make payment of the same or any part thereof; or (b) obtain and maintain insurance policies of the type discussed in Section 6.8 of this Agreement, and take any action with respect
to such policies as Lender deems prudent. Any amounts paid or deposited by Lender shall constitute Lender’s Expenses, 

  
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shall be immediately due and payable, shall bear interest at the Default Rate and shall be secured by the Collateral. Any payments made by Lender shall not constitute an agreement by Lender to
make similar payments in the future or a waiver by Lender of any Event of Default under this Agreement. Borrower shall pay all reasonable fees and expenses, including without limitation, Lender’s Expenses, incurred by Lender in the enforcement
or attempt to enforce any of the Obligations hereunder not performed when due. 
 9.6 Remedies Cumulative. Lender’s
rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative. Lender shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by
Lender of one right or remedy shall be deemed an election, and no waiver by Lender of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Lender shall constitute a waiver, election, or acquiescence by it.

 9.7 Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the
proceeds and the avails of any remedy hereunder (as well as any other amounts of any kind held by Lender, at the time of or received by Lender after the occurrence of an Event of Default hereunder) shall be paid to and applied as follows:

 (a) First, to the payment of out-of-pocket costs and expenses, including all amounts expended to preserve the value
of the Collateral, of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses, liability and advances, including reasonable legal expenses and attorneys’ fees, incurred or
made hereunder by Lender, including, without limitation, Lender’s Expenses; 
 (b) Second, to the payment to Lender
of the amount then owing or unpaid on the Loans for any accrued and unpaid interest, the amounts which would have otherwise come due under Section 2.3(b)(ii), if the Loans had been voluntarily prepaid, the principal balance of the Loans, and
all other Obligations with respect to the Loans (provided, however, if such proceeds shall be insufficient to pay in full the whole amount so due, owing or unpaid upon the Loans, then to the unpaid interest thereon, then to the amounts
which would have otherwise come due under Section 2.3(b)(ii), if the Loans had been voluntarily prepaid, then to the principal balance of the Loans, and then to the payment of other amounts then payable to Lender under any of the Loan
Documents); and 
 (c) Third, to the payment of the surplus, if any, to Borrower, its successors and assigns, or to the
Person lawfully entitled to receive the same. 
 9.8 Reinstatement of Rights. If Lender shall have proceeded to enforce
any right under this Agreement or any other Loan Document by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely, then and in every such case
(unless otherwise ordered by a court of competent jurisdiction), Lender shall be restored to its former position and rights hereunder with respect to the Property subject to the security interest created under this Agreement. 

  
 - 34 -

 10. Waivers; Indemnification. 

10.1 Demand; Protest. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and
nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees at any time held by Lender on which Borrower may in any way be
liable. 
 10.2 Lender’s Liability for Collateral. So long as Lender complies with its obligations, if any, under
the Code, Lender shall not in any way or manner be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage thereto occurring or arising in any manner or fashion from any cause other than Lender’s gross
negligence or willful misconduct; (c) any diminution in the value thereof; or (d) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person whomsoever. All risk of loss, damage or destruction of the
Collateral shall be borne by Borrower. 
 10.3 Indemnification and Waiver. Whether or not the transactions contemplated
hereby shall be consummated: 
 (a) General Indemnity. Borrower agrees upon demand to pay or reimburse Lender for all
liabilities, obligations and out-of-pocket expenses, including Lender’s Expenses and reasonable fees and expenses of counsel for Lender from time to time arising in connection with the enforcement or collection of sums due under the Loan
Documents, and in connection with any amendment or modification of the Loan Documents or any “work-out” in connection with the Loan Documents. Borrower shall indemnify, reimburse and hold Lender, and each of its respective successors,
assigns, agents, attorneys, officers, directors, equity holders, servants, agents and employees (each an “Indemnified Person”) harmless from and against all liabilities, losses, damages, actions, suits, demands, claims of any kind
and nature (including claims relating to environmental discharge, cleanup or compliance), all costs and expenses whatsoever to the extent they may be incurred or suffered by such Indemnified Person in connection therewith (including reasonable
attorneys’ fees and expenses), fines, penalties (and other charges of any applicable Governmental Authority), licensing fees relating to any item of Collateral, damage to or loss of use of property (including consequential or special damages to
third parties or damages to Borrower’s property), or bodily injury to or death of any person (including any agent or employee of Borrower) (each, a “Claim”), directly or indirectly relating to or arising out of the use of the
proceeds of the Loans or otherwise, the falsity of any representation or warranty of Borrower or Borrower’s failure to comply with the terms of this Agreement or any other Loan Document. The foregoing indemnity shall cover, without limitation,
(i) any Claim in connection with a design or other defect (latent or patent) in any item of equipment or product included in the Collateral, (ii) any Claim for infringement of any patent, copyright, trademark or other intellectual property
right, (iii) any Claim resulting from the presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Materials on the premises owned, occupied or leased by Borrower, including any Claims
asserted or arising under any Environmental Law, (iv) any Claim for negligence or strict or absolute liability in tort, or (v) any Claim asserted as to or arising under any Account Control Agreement or any Landlord Agreement;
provided, however. Borrower shall not indemnify Lender for any liability incurred by Lender as a direct and sole result of Lender’s gross negligence or willful misconduct. Such

  
 - 35 -

 
indemnities shall continue in full force and effect, notwithstanding the expiration or termination of this Agreement. Upon Lender’s written demand, Borrower shall assume and diligently
conduct, at its sole cost and expense, the entire defense of Lender, each of its members, partners, and each of their respective, agents, employees, directors, officers, equity holders, successors and assigns against any indemnified Claim described
in this Section 10.3(a). Borrower shall not settle or compromise any Claim against or involving Lender without first obtaining Lender’s written consent thereto, which consent shall not be unreasonably withheld. 

(b) Waiver. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR ANYWHERE ELSE, BORROWER AGREES THAT IT SHALL
NOT SEEK FROM LENDER UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES. 
 (c) Survival; Defense. The obligations in this Section 10.3 shall survive payment of all other Obligations pursuant to Section 12.8. At the election of any Indemnified
Person, Borrower shall defend such Indemnified Person using legal counsel satisfactory to such Indemnified Person in such Person’s reasonable discretion, at the sole cost and expense of Borrower. All amounts owing under this
Section 10.3 shall be paid within thirty (30) days after written demand. 
 11. Notices. Unless
otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational
documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by certified mail, postage prepaid, return receipt requested, by prepaid nationally recognized overnight courier, or by prepaid facsimile to
Borrower or to Lender, as the case may be, at their respective addresses set forth below: 
  

			
	If to Borrower:	    	Enphase Energy, Inc.
		    	201 1st Street, Suite 300
		    	Petaluma, CA 94952
		    	Attention: Chief Financial Officer
	If to Lender:	    	Horizon Technology Finance Corporation
		    	76 Batterson Park Road
		    	Farmington, CT 06032
		    	Attention: Legal Department

 The parties hereto may change the address at which they are to receive notices hereunder, by notice in
writing in the foregoing manner given to the other. 

  
 - 36 -

 12. General Provisions. 

12.1 Successors and Assigns. This Agreement and the Loan Documents shall bind and inure to the benefit of the respective
successors and permitted assigns of each of the parties; provided, however, neither this Agreement nor any rights hereunder may be assigned by Borrower without Lender’s prior written consent, which consent may be granted or
withheld in Lender’s sole discretion. Lender shall have the right without the consent of or notice to Borrower to sell, transfer, assign, negotiate, or grant participations in all or any part of, or any interest in Lender’s rights and
benefits hereunder. Lender may disclose the Loan Documents and any other financial or other information relating to Borrower or any Subsidiary to any potential participant or assignee of any of the Loans, provided that such participant
or assignee agrees to protect the confidentiality of such documents and information using the same measures that it uses to protect its own confidential information. Borrower hereby authorizes and directs Lender, for and on behalf of the Borrower,
to maintain a record of ownership of the Notes and any interest therein, which record, or “book-entry system”, shall identify the owner or owners of the Notes and any interests therein. Notwithstanding any other provision of this Agreement
or the Loan Documents, the right to the principal of, and stated interest on, the Notes may be transferred only through such book-entry system. 
 12.2 Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement. 
 12.3 Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any
specific provision. 
 12.4 Entire Agreement; Construction; Amendments and Waivers. 

(a) Entire Agreement. This Agreement and each of the other Loan Documents dated as of the date hereof, taken together, constitute
and contain the entire agreement between Borrower and Lender and supersede any and all prior agreements, negotiations, correspondence, understandings and communications between the parties, whether written or oral, respecting the subject matter
hereof. Borrower acknowledges that it is not relying on any representation or agreement made by Lender or any employee, attorney or agent thereof, other than the specific agreements set forth in this Agreement and the Loan Documents. 

(b) Construction. This Agreement is the result of negotiations between and has been reviewed by each of Borrower and Lender as of
the date hereof and their respective counsel; accordingly, this Agreement shall be deemed to be the product of the parties hereto, and no ambiguity shall be construed in favor of or against Borrower or Lender. Borrower and Lender agree that they
intend the literal words of this Agreement and the other Loan Documents and that no parol evidence shall be necessary or appropriate to establish Borrower’s or Lender’s actual intentions. 

(c) Amendments and Waivers. Any and all discharges or waivers of, or consents to any departures from any provision of this
Agreement or of any of the other Loan Documents shall not be effective without the written consent of Lender. Any and all amendments 

  
 - 37 -

 
and modifications of this Agreement or of any of the other Loan Documents shall not be effective without the written consent of Lender and Borrower. Any waiver or consent with respect to any
provision of the Loan Documents shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on Borrower in any case shall entitle Borrower to any other or further notice or demand in
similar or other circumstances. Any amendment, modification, waiver or consent affected in accordance with this Section 12.4 shall be binding upon Lender and on Borrower. 

12.5 Reliance by Lender. All covenants, agreements, representations and warranties made herein by Borrower shall be deemed to be
material to and to have been relied upon by Lender, notwithstanding any investigation by Lender. 
 12.6 No Set-Offs by
Borrower. All sums payable by Borrower pursuant to this Agreement or any of the other Loan Documents shall be payable without notice or demand and shall be payable in United States Dollars without set-off or reduction of any manner whatsoever.

 12.7 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate
counterparts (including signatures delivered by facsimile or other electronic means), each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same
Agreement. 
 12.8 Survival. All covenants, representations and warranties made in this Agreement shall continue in full
force and effect so long as any Obligations or commitment to fund remain outstanding. The obligations of Borrower to indemnify Lender with respect to the expenses, damages, losses, costs and liabilities described in Section 10.3 shall
survive until all applicable statute of limitations periods with respect to actions that may be brought against Lender have run. 
 13. Relationship of Parties. Borrower and Lender acknowledge, understand and agree that the relationship between Borrower, on the one hand, and Lender, on the other, is, and at all time shall
remain solely that of a borrower and lender. Lender shall not under any circumstances be construed to be a partner or a joint venturer of Borrower or any of its Affiliates; nor shall Lender under any circumstances be deemed to be in a relationship
of confidence or trust or a fiduciary relationship with Borrower or any of its Affiliates, or to owe any fiduciary duty to Borrower or any of its Affiliates. Lender does not undertake or assume any responsibility or duty to Borrower or any of its
Affiliates to select, review, inspect, supervise, pass judgment upon or otherwise inform Borrower or any of its Affiliates of any matter in connection with its or their Property, any Collateral held by Lender or the operations of Borrower or any of
its Affiliates. Borrower and each of its Affiliates shall rely entirely on their own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by Lender in
connection with such matters is solely for the protection of Lender and neither Borrower nor any Affiliate is entitled to rely thereon. 
 14. Confidentiality. In handling any information that Borrower notifies Lender is to be considered confidential, Lender agrees to use the same degree of care to safeguard and prevent

  
 - 38 -

 
disclosure of such confidential information as Lender uses with its own confidential information, but in any event no less than a reasonable degree of care. Lender shall not disclose such
information to any third party (other than to Lender’s members, partners, attorneys, governmental regulators, or auditors, or to Lender’s subsidiaries and affiliates and prospective transferees and purchasers of the Loan, all subject to
the same confidentiality obligation set forth herein or as required by law, regulation, subpoena or other order to be disclosed) and shall use such information only for purposes of evaluation of its investment in Borrower and the exercise of
Lender‘s rights and the enforcement of its remedies under this Agreement and the other Loan Documents. The obligations of confidentiality shall not apply to any information that (a) was known to the public prior to disclosure by Borrower
under this Agreement, (b) becomes known to the public through no fault of Lender, (c) is disclosed to Lender by a third party having a legal right to make such disclosure, or (d) is independently developed by Lender. Notwithstanding
the foregoing, Lender’s agreement of confidentiality shall not apply if Lender has acquired indefeasible title to any Collateral or in connection with any enforcement or exercise of Lender’s rights and remedies under this Agreement
following an Event of Default, including the enforcement of Lender’s security interest in the Collateral. 
 15. CHOICE
OF LAW AND VENUE; JURY TRIAL WAIVER. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CONNECTICUT, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. EACH OF BORROWER AND
LENDER HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF CONNECTICUT. BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. 

[Remainder of page intentionally left blank.] 

  
 - 39 -

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

			
	BORROWER:
	ENPHASE ENERGY, INC.
		
	By:	 	 /s/ Paul Nahi

			
	Name:	 	 Paul Nahi

			
	Title:	 	 President and Chief Executive Officer

	
	LENDER:
	HORIZON TECHNOLOGY FINANCE CORPORATION

 
			
		
	By:	 	 /s/ Robert D. Pomeroy,
Jr.

 
			
	Robert D. Pomeroy, Jr.
	Chief Executive Officer
	
	ASSIGNEE AND HOLDER OF ADVANCE (LOAN A): HORIZON CREDIT I LLC
	
	By: Compass Horizon Funding Company LLC, it sole member
	By: Horizon Technology Finance Corporation, its sole member
		
	By:	 	 /s/ Robert D. Pomeroy,
Jr.

 
			
	Name: Robert D. Pomeroy, Jr.
	Title: Chief Executive Officer

 LIST OF EXHIBITS AND SCHEDULES 

 

			
	Exhibit A	  	Intentionally Omitted
	Exhibit B	  	Funding Certificate
	Exhibit C	  	Form of Note
	Exhibit D	  	Form of Legal Opinion
	Exhibit E	  	Form of Officer’s Certificate

 EXHIBIT A 
 Intentionally Omitted 

 EXHIBIT B 
 FUNDING CERTIFICATE 
 The undersigned, being the duly elected and acting
                                 of ENPHASE ENERGY, INC., a Delaware corporation
(“Borrower”), does hereby certify to HORIZON TECHNOLOGY FINANCE CORPORATION, (the “Lender”) in connection with that certain Venture Loan and Security Agreement dated on or about the date hereof by and between Borrower and Lender
(the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that: 
 1. The representations and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan Documents are true and correct as of the date hereof. 

2. No event or condition has occurred that would constitute a Default or an Event of Default under the Loan Agreement or any other Loan
Document. 
 3. Borrower is in compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the
Loan Agreement. 
 4. All conditions referred to in Section 3 of the Loan Agreement to the making of the Loan to be
made on or about the date hereof have been satisfied. 
 5. No material adverse change in the general affairs, management,
results of operations, condition (financial or otherwise) or prospects of Borrower, whether or not arising from transactions in the ordinary course of business, has occurred. 
 6. The proceeds for the Advance shall be disbursed as follows: 
  

					
	 Disbursement from Lender:
	  			
	 Loan Amount
	  	$	2,000,000	  
	 Less:
	  			
	 Legal Fees
	  	$	 	  
	 Balance of Commitment Fee
	  	$	 	  
		
	 Net Proceeds due from Lender:
	  	$	 	  

 7. The aggregate net proceeds of the Advance in the amount of
$             shall be transferred to Borrower’s account as follows: 
 Account Name: 
 Bank Name: 

Bank Address: 

Account Number: 

ABA Number: 
 Dated:
                    , 2011 
  

			
	BORROWER:
	ENPHASE ENERGY, INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 EXHIBIT C 
 SECURED PROMISSORY NOTE 
  

			
	 $2,000,000.00
	  	Dated: March     , 2011

 FOR VALUE RECEIVED, the undersigned, ENPHASE ENERGY, INC., a Delaware corporation
(“Borrower”), HEREBY PROMISES TO PAY to HORIZON TECHNOLOGY FINANCE CORPORATION, a Delaware corporation (“Lender”) the principal amount of Two Million Dollars ($2,000,000.00) or such lesser amount as shall equal the
outstanding principal balance of the applicable Advance (the “Loan”) made to Borrower by Lender pursuant to the Loan Agreement (as defined below), and to pay all other amounts due with respect to the Loan on the dates and in the
amounts set forth in the Loan Agreement. 
 Interest on the principal amount of this Note from the date of this Note shall
accrue at a fixed rate equal to the Loan Rate as set forth herein, or, if applicable, the Default Rate. The Loan Rate for this Note is     % per annum based on a year of twelve 30-day months. If the Funding Date is not the
first day of the month, interim interest accruing from Funding Date through the last day of that month shall be paid on the first calendar day of the next calendar month, Commencing
                , 200    , through and including
                , 200    , on the first day of each month (each an “Interest Payment Date”) Borrower shall make
payments of accrued interest only on the outstanding principal amount of the Loan in the amount of                  Dollars
($                 ), Commencing on                 ,
200    , and continuing on the first day of each month thereafter (each a “Principal and Interest Payment Date” and, collectively with each Interest Payment Date, each a “Payment Date”),
Borrower shall make to Lender          (    ) equal payments of principal plus accrued interest on the then outstanding principal amount due under each in the amount of
                 Dollars ($                ). If not sooner paid, all
outstanding amounts hereunder and under the Loan Agreement shall become due and payable on                     . 

Principal, interest and all other amount due with respect to the Loan, are payable in lawful money of the United States of America to
Lenders as set forth in the Loan Agreement. The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid
attached hereto which is part of this Note. 
 This Note is referred to in, and is entitled to the benefits of, the Amended and
Restated Venture Loan and Security Agreement on or about the date hereof by and between Borrower and Lender (the “Loan Agreement”). The Loan Agreement, among other things, (a) provides for the making of secured Loans to Borrower, and
(b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 
 This Note
may not bee prepaid, except as set forth in Section 2.3 of the Loan Agreement. 
 This Note and the obligation of
Borrower to repay the unpaid principal amount of the Loan, interest on the Loan and all other amounts due Lender under the Loan Agreement is secured under the Loan Agreement. 

 Presentment for payment, demand, notice of protest and all other demands and notices of any
kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 
 Borrower shall
pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or limitation, to enforce any of Borrower’s obligations hereunder not performed when due. This
Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of Connecticut. 
 IN WITNESS
WHEREOF, Borrower has caused this Note to be duly executed by one of its officers thereunto duly authorized on the date hereof. 
  

			
	BORROWER:
	ENPHASE ENERGY, INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 EXHIBIT D 
 TO BE MUTUALLY AGREED UPON BY LENDER’S AND BORROWER’S COUNSEL 

 EXHIBIT E 
 FORM OF OFFICER’S CERTIFICATE 
 TO: COMPASS HORIZON FUNDING COMPANY
LLC 
 Reference is made to the Amended and Restated Venture Loan and Security Agreement dated as of March
    , 2011 (as it may be amended from time to time, the “Loan Agreement”) and between ENPHASE ENERGY, INC. (“Borrower”) and COMPASS HORIZON FUNDING COMPANY LLC (“Lender”).
Unless otherwise defined herein, capitalized terms have the meanings given such terms in the Loan Agreement. 
 The undersigned
Responsible Officer of Borrower hereby certifies to Lender that: 
  

	1.	No Event of Default has occurred under the Loan Agreement. (If an Event of Default has occurred, specify the nature and extent thereof and the action Borrower proposes
to take with respect thereto.) 

  

	2.	The information provided in Section 1 of the Disclosure Schedule is currently true and accurate, except as noted below. 

 

	3.	Borrower is in compliance with the provision with provisions of Sections 4.6 and 7 of the Loan Agreement, except as noted below. 

 

	4.	Attached herewith are the [monthly financial statements pursuant to Section 6.3(a) of the Loan Agreement/annual audited financial statement pursuant to
Section 6.3(b) of the Loan Agreement]. These have been prepared in accordance with GAAP and are consistent from one period to the next except as noted below. 

 

	
	NOTES TO ABOVE CERTIFICATIONS:
	
	  

	
	  

  

			
	BORROWER:
	ENPHASE ENERGY, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 FIRST AMENDMENT OF AMENDED AND RESTATED VENTURE LOAN AND 

SECURITY AGREEMENT 
 This FIRST AMENDMENT OF AMENDED AND RESTATED VENTURE LOAN AND SECURITY AGREEMENT (this “Agreement”), dated as of June 30, 2011, is entered into by and between ENPHASE ENERGY, INC., a
Delaware corporation (“Borrower”), and HORIZON TECHNOLOGY FINANCE CORPORATION (“Lender”), a Delaware corporation. 
 RECITALS 
 A. Borrower and Lender are parties to a certain Amended and
Restated Venture Loan and Security Agreement dated as of March 25, 2011 (the “Loan Agreement”) pursuant to which Lender, among other things, has (i) provided certain loan to Borrower as evidenced by (a) certain Secured
Promissory Notes executed by Borrower in favor of Lender, in original principal amounts of Nine Million Dollars ($9,000,000.00) (the “Notes”), and (ii) been granted a security interest in all assets of Borrower, except for
Borrower’s Intellectual Property (as defined in the Loan Agreement). 
 B. Borrower has now requested that Lender permit
Borrower to create a certain Subsidiary (as defined in the Loan Agreement) in New Zealand, and open and maintain a certain deposit account in New Zealand in connection with the creation of such Subsidiary. 

C. Lender is willing to grant such request, but only to the extent, and in accordance with the terms, and subject to the conditions, set
forth herein. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower and Lender hereby agree as
follows: 
 1. Definitions; Interpretation. Unless otherwise defined herein, all capitalized terms used
herein and defined in the Loan Agreement shall have the respective meanings given to those terms in the Loan Agreement. Other rules of construction set forth in the Loan Agreement, to the extent not inconsistent with this Agreement, apply to this
Agreement and are hereby incorporated by reference. 
 2. Confirmation. Borrower hereby acknowledges and
agrees that: (i) the Loan Agreement sets forth the legal, valid, binding and continuing Obligations of Borrower to Lender, (ii) the Obligations to Lender under the Loan Agreement are secured by validly perfected security interests in all assets of
Borrower, except for Borrower’s Intellectual Property, and with respect to Third Party Equipment, consistent with the provisions of Section 4.8 of the Loan Agreement, and (iii) Borrower has no cause of action, claim, defense or set-off against
the Lender in any way regarding or relating to the Loan Agreement or Lender’s actions thereunder and to the extent any such cause of action, claim, defense or set-off ever existed, it is waived and Lender is released from any claims of
Borrower. Borrower represents and warrants that no Default or Event of Default has occurred under the Loan Agreement. 

 3. Amendments to Loan Agreement. 

(a) Borrower and Lender agree that the reference to “July 31, 2011” after the phrase “Commitment
Termination Date (Loan C) appearing on the cover page of the Loan Agreement is deleted in its entirety and is replaced by “September 30, 2011.” 
 (b) Borrower and Lender hereby agree that the definition of “Subsidiary” within Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 

““Subsidiary” means any corporation or other entity of which a majority of the outstanding Equity Securities
entitled to vote for the election of directors or other governing body (otherwise than as the result of a default) is owned by Borrower directly or indirectly through Subsidiaries, including without limitation Enphase Energy SAS, Enphase Energy SRL
and Enphase Energy New Zealand Limited.” 
 (c) Borrower and Lender hereby agree that Section 7.13 of the
Loan Agreement is hereby deleted in its entirety and replaced with the following: 
 “7.13 Maintenance of Accounts.
(i) Maintain any deposit account or account holding securities owned by Borrower except (a) accounts with the lender providing Borrower with Indebtedness permitted under subsection (d) of the definition of Permitted Indebtedness or (b) accounts with
respect to which Lender is able to take such actions as it deems necessary to obtain a perfected security interest in such accounts through one or more Account Control Agreements; or (ii) grant or allow any other Person (other than Lender) to
perfect a security interest in, or enter into any agreements with any Persons (other than Lender) accomplishing perfection via control as to any of its deposit accounts or accounts holding securities other than in favor of the lender providing
Borrower with Indebtedness permitted under subsection (d) of the definition of Permitted Indebtedness. Notwithstanding the foregoing, Borrower may maintain: (1) a deposit account at Banca Popolare di Milano, BPM, subsidiary, having account number
             (the “Italian Account”), (2) a deposit account with BNP Paribas having account number             
(the “French Account”), (3) a deposit account with Bank of New Zealand having an account number              (the “New Zealand Account” and collectively
with the Italian Account and the French Account, the “Foreign Accounts”), and (4) a deposit account with Bank of the West, having an account number of
                 (the “Bank of the West Account”), provided that (x) less than One Million euro (€1,000,000) in the aggregate is maintained by the
Borrower in the Foreign Accounts and (y) less than Five Thousand Dollars ($5,000) is maintained by the Borrower in the Bank of the West Account.” 
 4. Conditions to Effectiveness. Lender’s consent and agreement herein is expressly conditioned on all of the following: 

 

	 	(a)	Borrower executing and delivering an executed copy of this Agreement; 

  
 - 2 -

	 	(b)	Borrower executing and delivering an executed copy of the letter agreement of even date herewith between Borrower and Lender pursuant to which Lender waived notice of,
and consented to, the creation of the Subsidiaries (as defined therein) and the opening and maintenance of the Foreign Accounts; and 

  

	 	(c)	Borrower’s payment of Lender’s in-house legal expenses in the amount of Five Thousand and 00/100 Dollars ($5,000.00) incurred in connection with the drafting,
negotiation and execution of this Agreement. 

 5. Effect of Agreement. On and after the
date hereof, each reference to the Loan Agreement in the Loan Agreement or in any other document shall mean the Loan Agreement as amended by this Agreement. Except as expressly provided hereunder, the execution, delivery and effectiveness of this
Agreement shall not operate as a waiver of any right, power, or remedy of Lender, nor constitute a waiver of any provision of the Loan Agreement Except to the limited extent expressly provided herein, nothing contained herein shall, or shall be
construed to (nor shall the Borrower ever argue to the contrary) (i) modify the Loan Agreement or any other Loan Document (ii) modify, waive, impair, or affect any of the covenants, agreements, terms, and conditions thereof, or (iii) waive the due
keeping, observance and/or performance thereof, each of which is hereby ratified and confirmed by the Borrower. Except as amended above, the Loan Agreement remains in full force and effect. 

6. Headings. Headings in this Agreement are for convenience of reference only and are not part of the substance
hereof. 
 7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Connecticut without reference to conflicts of law rules. 
 8. Counterparts. This
Agreement may be executed in any number of counterparts, including by electronic or facsimile transmission, each of which when so delivered shall be deemed an original, but all such counterparts taken together shall constitute but one and the same
instrument. 
 9. Integration. This Agreement and the Loan Documents constitute and contain the entire
agreement of Borrower and Lender with respect to their respective subject matters, and supercede any and all prior agreements, correspondence and communications. 
 [Remainder of page intentionally left blank] 

  
 - 3 -

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

			
	 BORROWER:
 ENPHASE
ENERGY, INC.

		
	By:	 	/s/ Sanjeev Kumar
	Name:	 	Sanjeev
Kumar                                        
                  
	Title:	 	CFO                            
                                         
       
	
	 LENDER:
 HORIZON
TECHNOLOGY FINANCE
 CORPORATION

		
	By:	 	/s/ Robert D. Pomeroy, Jr.
	Name:	 	Robert D. Pomeroy, Jr.
	Title:	 	Chief Executive Officer

  
 - 4 -

 SECOND AMENDMENT OF AMENDED AND RESTATED VENTURE LOAN AND 

SECURITY AGREEMENT 
 This SECOND AMENDMENT OF AMENDED AND RESTATED VENTURE LOAN AND SECURITY AGREEMENT (this “Agreement”), dated as of December 30, 2011, is entered into by and among ENPHASE ENERGY, INC., a
Delaware corporation (“Borrower”), HORIZON TECHNOLOGY FINANCE CORPORATION (”Horizon”), a Delaware corporation and HORIZON CREDIT I LLC (“HCI” and collectively with Horizon, “Lender”), a
Delaware limited liability company, as assignee and holder of Advance (Loan A). 
 RECITALS 

A. Pursuant to that certain Amended and Restated Venture Loan and Security Agreement dated as of March 25,2011, as amended on
June 30,2011 by that certain First Amendment of Amended and Restated Venture Loan and Security Agreement (as the same has been and may be further amended, supplemented or otherwise modified from time to time, the “Loan
Agreement”) between Borrower and Lender, Lender, among other things, has (i) provided certain loans to Borrower as evidenced by (a) a certain Secured Promissory Note (Loan A) executed by Borrower in favor of Lender, dated as of
March 11,2010, in the original principal amount of Seven Million Dollars ($7,000,000.00) (“Note A”), (b) a certain Secured Promissory Note (Loan B) executed by Borrower in favor of Lender, dated as of March 25,2011,
in the original principal amount of Two Million Dollars ($2,000,000.00) (“Note B”) and (iii) a certain Secured Promissory Note (Loan C) executed by Borrower in favor of Lender, dated as of September 23,2011, in the
original principal amount of Three Million Dollars ($3,000,000) (“Note C” and together with Note A and Note B, the “Notes”) and (ii) been granted a security interest in all assets of Borrower, except for
Borrower’s Intellectual Property (as defined in the Loan Agreement) and certain specified equipment. 
 B. Borrower has now
requested that Lender permit Borrower to amend the definition of Permitted Indebtedness under the Loan Agreement. 
 C. Lender
is willing to grant such request, but only to the extent, and in accordance with the terms, and subject to the conditions, set forth herein. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the above recitals and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower and Lender hereby agree as follows: 
  

	1.	Definitions: Interpretation. Unless otherwise defined herein, all capitalized terms used herein and defined in the Loan Agreement shall have the respective
meanings given to those terms in the Loan Agreement. Other rules of construction set forth in the Loan Agreement, to the extent not inconsistent with this Agreement, apply to this Agreement and are hereby incorporated by reference.

  

	2.	 Confirmation. Borrower hereby acknowledges and agrees that: (i) the Loan Agreement sets forth the legal, valid, binding and continuing
Obligations of Borrower to 

	 	Lender, and (ii) the Obligations to Lender under the Loan Agreement are secured by validly perfected security interests in all assets of Borrower, except for
Borrower’s Intellectual Property, and with respect to Third Party Equipment, consistent with the provisions of Section 4.8 of the Loan Agreement, and (iii) Borrower has no cause of action, claim, defense or set off against the Lender
in any way regarding or relating to the Loan Agreement or Lender’s actions thereunder and to the extent any such cause of action, claim, defense or set-off ever existed, it is waived and Lender is released from any claims of Borrower. Borrower
represents and warrants that no Default or Event of Default has occurred and is continuing under the Loan Agreement. 

  

	3.	Amendments to Loan Agreement. 

 (a) Borrower and Lender hereby agree that the definition of “Permitted Indebtedness” within Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the
following: 
 “Permitted Indebtedness” means and includes: 

(a) Indebtedness of Borrower to Lender; 
 (b) Indebtedness arising from the endorsement of instruments in the ordinary course of business; 
 (c) Indebtedness existing on the date hereof and set forth on the Disclosure Schedule; 
 (d) Indebtedness in an aggregate principal amount not exceeding Thirty-Three Million Dollars ($33,000,000), consisting of a revolving credit facility from Bridge Bank, N.A. and Comerica Bank and in which
the loans are limited to not more than Eighty Percent (80%) of Borrower’s outstanding accounts receivable and Fifty Percent (50%) of Borrower’s eligible inventory; 

(e) Indebtedness secured by a lien described in clause (g) of the defined term “Permitted Liens,” provided (i) such Indebtedness
does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness and (ii) such Indebtedness does not exceed Five Million Dollars ($5,000,000) in the aggregate at any given time; and 

(f) Indebtedness to Oracle America, Inc. or one of its affiliates, including Oracle Credit Corporation in an aggregate amount not to
exceed $500,000; 
 (g) Inter-company Indebtedness incurred in the ordinary course of business; 

  
 - 2 -

 (h) Other Indebtedness in an aggregate amount not exceeding Seven Hundred Fifty Thousand
Dollars ($750,000) at any time; 
 (i) Subordinated Debt; and 

(j) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through
(i) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 

 

	4.	Conditions to Effectiveness. Lender’s consent and agreement herein is expressly conditioned on all of the following: 

(a) Borrower executing and delivering an executed copy of this Agreement; and 

(b) Borrower’s agreement to pay, when invoiced, Lender’s in-house legal expenses in the amount of Two Thousand
Five Hundred and 00/100 Dollars ($2,500.00) incurred in connection with the drafting, negotiation and execution of this Agreement. 
  

	5.	Effect of Agreement. On and after the date hereof, each reference to the Loan Agreement in the Loan Agreement or in any other document shall mean the Loan
Agreement as amended by this Agreement. Except as expressly provided hereunder, the execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power, or remedy of Lender, nor constitute a waiver of any
provision of the Loan Agreement. Except to the limited extent expressly provided herein, nothing contained herein shall, or shall be construed to (nor shall the Borrower ever argue to the contrary) (i) modify the Loan Agreement or any other Loan
Document (ii) modify, waive, impair, or affect any of the covenants, agreements, terms, and conditions thereof, or (iii) waive the due keeping, observance and/or performance thereof, each of which is hereby ratified and confirmed by the
Borrower. Except as amended above, the Loan Agreement remains in full force and effect. 

  

	6.	Headings. Headings in this Agreement are for convenience of reference only and are not part of the substance hereof. 

 

	7.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut without reference to conflicts of law
rules. 

  

	8.	Counterparts. This Agreement may be executed in any number of counterparts, including by electronic or facsimile transmission, each of which when so delivered
shall be deemed an original, but all such counterparts taken together shall constitute but one and the same instrument. 

  
 - 3 -

	9.	Integration. This Agreement and the Loan Documents constitute and contain the entire agreement of Borrower and Lender with respect to their respective subject
matters, and supersede any and all prior agreements, correspondence and communications. 

 [Remainder of
page intentionally left blank] 

  
 - 4 -

 IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed as of the day and year
first above written. 
  
  
			
	 BORROWER:
 ENPHASE
ENERGY, INC.

		
	By:	 	/s/ Paul Nahi
	Name:	 	Paul Nahi
	Title:	 	Chief Executive Officer

   

			
	 LENDER:
 HORIZON
TECHNOLOGY FINANCE
 CORPORATION

		
	By:	 	/s/ Robert D. Pomeroy, Jr.
	Name:	 	Robert D. Pomeroy, Jr.
	Title:	 	Chief Executive Officer

  

			
	HORIZON CREDIT I LLC
	 By: Compass Horizon Funding Company
 LLC, its sole member

	 By: Horizon Technology Finance
 Corporation, its sole member

		
	By:	 	/s/ Robert D. Pomeroy, Jr.
	Name:	 	Robert D. Pomeroy, Jr.
	Title:	 	Chief Executive Officer

  
 - 5 -Amended and Restated Loan and Security Agreement

 Exhibit 10.11 
 ENPHASE ENERGY, INC. 
 BRIDGE BANK, NATIONAL ASSOCIATION 

COMERICA BANK 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

 This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT is entered into as of
March 24, 2011, by and between BRIDGE BANK, NATIONAL ASSOCIATION (“Bridge” and, solely in its capacity as collateral agent for the Lenders (as defined below), “Collateral Agent”), COMERICA BANK
(“Comerica” and, collectively, with Bridge, the “Lenders” and each, individually, a “Lender”) and INPHASE ENERGY, INC. (“Borrower”). 

RECITALS 
 Borrower and Bridge are parties to that certain Loan and Security Agreement, dated as of January 19, 2010 (as amended from time to time, including that certain Loan and Security Modification
Agreement dated as of April 20, 2010, that certain Loan and Security Modification Agreement dated as of June 7, 2010 and that certain Loan and Security Modification Agreement dated as of September 13, 2010, collectively, the
“Original Agreement”). Borrower and Lenders wish to amend and restate the terms of the Original Agreement. This Agreement sets forth the terms on which Lenders will advance credit to Borrower, and Borrower will repay the amounts owing to
Lenders. 
 AGREEMENT 
 The parties agree as follows: 
  

	 	1.	DEFINITIONS AND CONSTRUCTION. 

 1.1 Definitions. As used in this Agreement, the following terms shall have the following definitions: 
 “Accounts” means all presently existing and hereafter arising accounts, contract rights, payment intangibles, and all other forms of obligations owing to Borrower arising out of the sale or
lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by Borrower, whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor,
as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing. 

“Advance” or “Advances” means a cash advance or cash advances under the Revolving Facility. 

“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person
that controls or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors, and partners. 
 “Approved Forecast” has the meaning assigned in Section 6.7. 

“Atel” means ATEL Ventures, Inc. 
 “Atel Indebtedness” means indebtedness of Borrower in favor of Atel, not to exceed the principal amount of Two Hundred Sixteen Thousand Nine Hundred Seventy Four Dollars ($216,974) as of
January 31, 2011. 
 “Borrower’s Books” means all of Borrower’s books and records including: ledgers;
records concerning Borrower’s assets or liabilities the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment, containing such information. 

“Borrowing Base” means an amount equal to (1) eighty percent (80%) of Eligible Accounts, plus (2) fifty percent
(50%) of Eligible Inventory (provided that Advances against Eligible Inventory shall not exceed the lesser of fifty percent (50%) of Eligible Accounts or Ten Million Dollars ($10,000,000)); all as determined by Lenders with reference to
the most recent Borrowing Base Certificate delivered by Borrower. 

  
 1 

 “Business Day” means any day that is not a Saturday, Sunday, or other day on which
banks in the State of California are authorized or required to close. 
 “Change in Control” shall mean a transaction
in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a
majority of the Board of Directors of Borrower, who did not have such power-before such transaction. 
 “Closing Date”
means the date of this Agreement. 
 “Code” means the California Uniform Commercial Code. 

“Collateral” means the property described on Exhibit A attached hereto. 

“Collateral Agent” means, Bridge, not in its individual capacity but solely in its capacity as agent on behalf of and for the
benefit of the Lenders. 
 “Collateral Agent-Related Person” means the Collateral Agent, together with its Affiliates,
and the officers, directors, employees, agents, advisors, auditors and attorneys-in-fact of such Persons; provided, however, that no Collateral Agent-Related Person shall be an Affiliate of Borrower. 

“Commitment Amount” is set forth in Schedule 1.1, as amended from time to time. 

“Commitment Percentage” is set forth in schedule 1.1, as amended from time to time. 

“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; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards, or merchant services issued or provided
for the account of that Person; and (iii) all obligations arising under any agreement or arrangement designed to protect such 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 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 Collateral Agent 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 any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof. 

“Credit Card Exposure” has the meaning assigned in Section 2.1(c). 

“Credit Card Reserve” has the meaning assigned in Section 2.1(c). 

“Credit Card Services” has the meaning assigned in Section 2.1(c). 

“Credit Extension” means each Advance, Letter of Credit, use of Credit Card Services, FX Contracts or any other extension of
credit by any Lender for the benefit of Borrower hereunder. 
 “Daily Balance” means the amount of the Obligations
owed at the end of a given day. 
 “Disclosure letter” means the disclosure letter delivered to Lenders by Borrower on
the Closing Date, and approved by Lenders. 

  
 2 

 “Domestic Subsidiary” shall mean any direct or indirect Subsidiary of Borrower
incorporated or organized under the laws of the United States of America, or any state or other political subdivision thereof or which is considered to be a “disregarded entity” for United States federal income tax purposes and which is
not a “controlled foreign corporation” as defined under Section 957 of the Internal Revenue Code, in each case provided such Subsidiary is owned by Borrower or a Domestic Subsidiary of Borrower, and “Domestic Subsidiaries”
shall mean any or all of them. 
 “Eligible Accounts” means those Accounts that arise in the ordinary course of
Borrower’s business that comply with all of Borrower’s representations and warranties to Lenders set forth in Section 5.4; provided, that standards of eligibility may be fixed and revised from time to time by Required Lenders’ in
Required Lenders reasonable judgment and upon notification thereof to Borrower in accordance with the provisions hereof. Unless otherwise agreed to by Required Lenders, Eligible Accounts shall not include the following: 

(a) Accounts that the account debtor has failed to pay within ninety (90) days of invoice date; 

(b) Accounts with respect to an account debtor, thirty five percent (35%) of whose Accounts the account debtor has failed to
pay within ninety (90) days of invoice date; 
 (c) Accounts with respect to which the account debtor is an
officer, employee, or agent of Borrower; 
 (d) Accounts with respect to which goods are placed on consignment,
guaranteed sale, sale or return, sale on approval, bill and hold or other terms by reason of which the payment by the account debtor may be conditional; 
 (e) “Prebilled” accounts, “progress billings” or “retention billings”; 
 (f) Accounts with respect to which the account debtor is an Affiliate of Borrower; 
 (g) Accounts with respect to which the Account debtor is Paramit Corporation or Flextronics; 
 (h) Accounts with respect to which the account debtor does not have its principal place of business in the United States or Canada, except for Eligible Foreign Accounts; 

(i) Accounts with respect to which the account debtor is the United States or any department, agency, or instrumentality of the
United States; 
 (j) Accounts with respect to which Borrower is liable to the account debtor for goods sold or services
rendered by the account debtor to Borrower or for deposits or other property of the account debtor held by Borrower, but only to the extent of any amounts owing to the account debtor against amounts owed to Borrower; 

(k) Accounts with respect to an account debtor, including Subsidiaries and Affiliates, whose total obligations to Borrower exceed
thirty percent (30%) of all Accounts, to the extent such obligations exceed the aforementioned percentage, except as approved in writing by Required Lenders; 
 (l) Accounts that are subject to Borrower’s standard five (5) days rejection or return policy; 
 (m) Accounts with respect to which the account debtor disputes liability or makes any claim with respect there to as to which Required Lenders believe, in their sole discretion, that there may be a
basis for dispute (but only to the extent of the amount subject to such dispute or claim), or is subject to any Insolvency Proceeding, or becomes insolvent, or goes out of business; and 

  
 3 

 (n) Accounts the collection of which either of the Required Lenders reasonably
determines to be doubtful in its reasonable credit judgment. 
 “Eligible Foreign Accounts” means Accounts with
respect to which the account debtor does not have its principal place of business in the United States or Canada and that (i) are supported by one or more letters of credit in an amount and of a tenor, and issued by a financial institution,
reasonably acceptable to Required Lenders, or (ii) that Required Lenders approve on a case-by-case basis. 
 “Eligible
Inventory” means Inventory that meets all of Borrower’s representations and warranties in Section 5.5 and is otherwise reasonably acceptable to Required Lenders in all respects. 

“Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts
and attachments in which Borrower has any interest. 
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended, and the regulations thereunder. 
 “Event of Default” has the meaning assigned in Article 8.

 “Foreign Exchange Sublimit” means a sublimit for foreign exchange contracts under the Revolving Line not to exceed
Two Million Five Hundred Thousand Dollars ($2,500,000). 
 “Foreign Subsidiaries” means each Subsidiary of Borrower
which is not a Domestic Subsidiary. 
 “FX Contracts” has the meaning assigned in Section 2.1(d). 

“FX Reserve” has the meaning assigned in Section 2.1(d). 

“GAAP” means generally accepted accounting principles as in effect from time to time. 

“Governmental Authority” means the government of the United States of America or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government. 
 “Guarantor(s)” shall mean each Domestic Subsidiary of Borrower which has executed and
delivered to the Collateral Agent a Guaranty (or a joinder to a Guaranty), and a Security Agreement (or a joinder to the Security Agreement). 
 “Guaranty” shall mean, collectively, the guaranty agreements executed and delivered by the applicable Guarantors from time to time after the Closing Date (whether by execution of joinder
agreements or otherwise) pursuant to Section 6.9 hereof or otherwise, in each case in form and substance reasonably acceptable to Collateral Agent, as amended, restated or otherwise modified from time to time. 

“Horizon” means Compass Horizon Funding Company LLC. 
 “Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without limitation 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 Revenue Cure” has the meaning assigned in Section 6.7. 

“Insolvency Proceeding” means any proceeding commenced by or against any person or entity under any provision of the United
States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, 

  
 4 

 
including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement, or
other relief. 
 “Inventory” means all inventory in which Borrower has or acquires any interest, including work in
process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or at any time hereafter owned by or in the custody or possession, actual or constructive of Borrower,
including such inventory as is temporarily out of its custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and
any documents of title representing any of the above, and Borrower’s Books relating to any of the foregoing. 

“Investment” means any beneficial ownership of (including stock, partnership interest of other securities) any Person, or any
loan, advance or capital contribution to any Person. 
 “Investors” means certain existing investors in Borrower and
certain of such investors’ Affiliates. 
 “Investors’ Indebtedness” means subordinated convertible
Indebtedness of Borrower in favor of Investors in the aggregate principal amount not to exceed Fifty Million Dollars ($50,000,000); provided the same is subject to the Investors Subordination Agreement. 

“Investors’ Lien” means a Lien in favor of the Investors, or an agent or representative thereof, to secure repayment of
the Investors’ Indebtedness. 
 “Investors’ Note Purchase Agreement” means that certain [Note Purchase
Agreement] by and between Borrower and Investors, pursuant to which Borrower issues to Investors the Investors’ Indebtedness, all instruments and agreements executed and/or delivered in connection therewith, and all schedules and exhibits
thereto; all in form and content reasonably acceptable to Lenders. 
 “Investors Subordination Agreement” means that
certain subordination agreement between Investors and Collateral Agent, with respect to the Investors’ Indebtedness, in form and content acceptable to Collateral Agent in its sole discretion; provided that, without limiting the foregoing, the
Investors Subordination Agreement shall provide, among other things, that (i) that the Investors’ Indebtedness cannot be repaid before the Obligations under this Agreement are indefeasibly repaid in full, in cash, and the Lenders’
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) Investors (nor any agent or any representative of Investors) may not 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) unless and until the Obligations under this Agreement are indefeasibly repaid in full, in cash, and the Lenders’ commitments to lend hereunder have been terminated. 

“IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 

“Issuing Lender” means Bridge. 
 “Lender Expenses” means all: reasonable costs or expenses (including reasonable attorneys’ fees and expenses) incurred in connection with the preparation, negotiation, administration, and
enforcement of the Loan Documents; reasonable Collateral audit fees; and Lenders’ reasonable attorneys’ fees and expenses incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred
before, during and after an Insolvency Proceeding, whether or not suit is brought. 
 “Lien” means any mortgage, lien,
deed of trust, charge, pledge, security interest or other encumbrance. 
 “Letter of Credit” has the meaning set forth
in Section 2.1(b)(i). 

  
 5 

 “Letter of Credit Obligations” mean at any date of determination, the Stated
Amount of all outstanding Letters of Credit and unreimbursed payments and disbursements under such Letters of Credit. 

“Loan Commitment” means, for any Lender, the obligation of such Lender to make Advances, up to the principal amount shown on
Schedule 1.1. “Loan Commitments” means the aggregate amount of such commitments of all Lenders. 
 “Loan
Documents” means, collectively, this Agreement, any note or notes executed by Borrower, and any other agreement entered into in connection with this Agreement, all as amended or extended from time to time. 

“Material Adverse Effect” means a material adverse effect on (i) the business operations or condition (financial or
otherwise) of Borrower and its Subsidiaries taken as a whole or (ii) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan Documents or (iii) the value or priority of Lenders’ security
interests in the Collateral. In determining whether a “Material Adverse Effect” has occurred under clause (i) or (ii) above, Lenders’ primary, though not sole, consideration will be whether Borrower has or will have
sufficient cash resources to repay the Obligations as and when due. 
 “Negotiable Collateral” means all letters of
credit of which Borrower is a beneficiary, notes, drafts, instruments, securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing. 

“New Equity” means the receipt by Borrower, after the Closing Date, of net proceeds from the sale and issuance of
Borrower’s equity securities or Subordinated Debt (excluding the Investors’ Indebtedness). 
 “Obligations”
means all principal and interest in respect of Advances, Lender Expenses and other amounts owed to Lenders, or any of them, by Borrower pursuant to this Agreement or any other agreement, whether absolute or contingent, due or to become due, now
existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding (whether or not allowed in such Insolvency Proceeding), and including obligations due in respect of Letters of Credit, Corporate
Credit Card Exposure, FX Contracts, and cash management, ACH, overdraft and treasury management services in the ordinary course of business, and including any such debt, liability, or obligation owing from Borrower to others that a Lender may have
obtained by assignment or otherwise. 
 “Patents” means all patents, patent applications and like protections
including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 
 “Periodic Payments” means all installments or similar recurring payments that Borrower may now or hereafter become obligated to pay to any Lender pursuant to the terms and provisions of any
instrument, or agreement now or hereafter in existence between Borrower and any Lender. 
 “Permitted Foreign Cash”
has the meaning assigned in Section 6.7. 
 “Permitted Indebtedness” means: 

(a) Indebtedness of Borrower in favor of Lenders arising under this Agreement or any other Loan Documents; 

(b) Indebtedness existing on the Closing Date and disclosed in the Disclosure Letter; 

(c) Indebtedness secured by a lien described in clause (c) of the defined term “Permitted Liens,” provided
(i) such Indebtedness does not exceed the lesser of the cost or fair market value of the equipment or other fixed or capital assets financed with such Indebtedness and (ii) such Indebtedness does not exceed $5,000,000 in the aggregate at
any given time; and 
 (d) the Atel Indebtedness; 

  
 6 

 (e) Subordinated Debt; 

(f) the Venture Debt; 
 (g) Indebtedness to Oracle America, Inc. or one of its affiliates, including Oracle Credit Corporation, in an aggregate amount not to exceed $500,000 (the “Oracle Debt”); 

(h) the Investors’ Indebtedness; 
 (i) Indebtedness constituting (but without duplication with) Investments permitted under clause (h) of the defined term “Permitted Investments;” 

(j) Other Indebtedness not otherwise permitted by Section 7.4, not exceeding Five Hundred Thousand Dollars ($500,000)
in the aggregate outstanding at any time; and 
 (k) extensions, refinancings, modifications, amendments and
restatements of any items of Permitted Indebtedness (a) through (g) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary,
as the case may be. 
 “Permitted Investment” means: 

(a) Investments existing on the Closing Date disclosed in the Disclosure Letter; 

(b) (i) marketable direct obligations issued or conditionally guaranteed by the United States of America or any agency of any
State thereof maturing within one (1) year from the date of acquisition thereof, (ii) commercial paper maturing more than one (1) year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either
Standard & Poor’s Corporation or Moody’s Investors Service, (iii) certificates of deposit maturing no more than one (1) year from the date of investment therein issued by a Lender; (iv) Lenders’ money market
accounts; and (v) Investments made in accordance with Borrower’s board approved short term investment policy, as provided to, reviewed and approved by Required Lenders (such approval not to be unreasonably withheld or delayed; 

(c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the
ordinary course of Borrower; 
 (d) Investments accepted in connection with Transfers permitted by
Section 7.1; 
 (e) Investments consisting of (i) travel advances and employee relocation loans and other
employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or
agreements approved by Borrower’s Board of Directors; not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal year; 
 (f) 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 business; 
 (g) 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 paragraph (g) shall not apply to Investments of Borrower in any
Subsidiary; 
 (h) Investments in Subsidiaries made in the ordinary course of business, not to exceed Four Million Five
Hundred Thousand Dollars ($4,500,000) in the aggregate in any fiscal year; 

  
 7 

 (i) (x) 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 do not exceed Two Hundred Fifty Thousand Dollars
($250,000) in the aggregate in any fiscal year; and (y) strategic alliances with particular customers in which such customers will share in the research and development expense of Borrower associated with the incorporation by such customers of
microconverters purchased from Borrower into solar panels produced by such customers; 
 (j) Investments in connection
with mergers or acquisitions permitted by Section 7.3 and Investments accepted in connection with such mergers or acquisitions permitted by Section 7.3; 
 (k) Investments permitted pursuant to Section 7.6; 
 (l)
Investments consisting of the conversion or settlement of any convertible securities or debt of Borrower or otherwise in exchange therefor; and 
 (m) Other Investments aggregating not in excess of One Hundred Fifty Thousand Dollars ($150,000) at any time. 
 “Permitted Liens” means the following: 
 (a) Any Liens existing
on the Closing Date and disclosed in the Disclosure Letter or arising under this Agreement or the other Loan Documents; 

(b) Liens for taxes fees, assessments or other governmental charges or levies, either not delinquent or being contested in good
faith by appropriate proceedings, provided the same have no priority over any of Lenders’ security interests; 
 (c)
Liens (i) upon or in any equipment or other fixed or capital assets which was not financed by a Lender acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such equipment or such fixed or capital assets or
indebtedness incurred solely for the purpose of financing the acquisition of such equipment or such fixed or capital assets, or (ii) existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the
property so acquired and improvements thereon, and the proceeds of such equipment; 
 (d) Liens securing the Atel
Indebtedness; 
 (e) the Investors Lien; 
 (f) Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory and which
are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 

(g) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like
obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 
 (h) leases or subleases
of real property granted in the ordinary course of Borrower’s business ( or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal
property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do
not prohibit granting Lenders a security interest therein; 
 (i) non-exclusive license of Intellectual Property granted
to third parties in the ordinary course of business, and licenses of Intellectual Property that could not result in a legal transfer of title of the 

  
 8 

 
licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; 

(j) Liens arising from attachments or judgments, orders or decrees in circumstances not constituting an Event of Default under
Sections 8.4 and 8.7; 
 (k) Liens in favor of customs and revenue authorities incurred in the ordinary course of
business to secure payment of custom duties in connection with the importation of goods; 
 (l) Liens securing the
Venture Debt; 
 (m) Liens securing the Oracle Debt; 

(n) Deposits made in the ordinary course of business to secure Indebtedness for real property lease obligations (provided that
any such deposit is in the form of a Letter of Credit issued under this Agreement); and 
 (o) Liens incurred in
connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (a) through (m) above, provided that any extension, renewal or replacement Lien shall be limited to the property
encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase. 
 “Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, institution, public
benefit corporation, firm, joint stock company, estate, entity or governmental agency. 
 “Prime Rate” means the
greater of (i) the variable rate of interest, per annum, most recently announced by Bridge, as its “prime rate,” whether or not such announced rate is the lowest rate available from Bridge and (ii) 3.25%. 

“Pro Rata Share” means, as of any date of determination, with respect to each Lender, a percentage (expressed as a decimal,
rounded to the ninth decimal place) determined by dividing the outstanding principal amount of the Advances made by such Lender by the aggregate outstanding principal amount of the Advances. 

“Required Lenders” means (i) for so long as all of the Persons that are Lenders on the Closing Date (each an
“Original Lender”) have not assigned or transferred any of their interests in their respective Advances, Lenders holding one hundred percent (100%) of the aggregate outstanding principal balance of the Revolving Line, or (ii) at
any time from and after any Original Lender has assigned or transferred any interest in its Advances, Lenders holding sixty-six percent (66%) of the aggregate outstanding principal balance of the Revolving Line. For purposes of this definition
only a Lender shall be deemed to include itself, and any Lender that is an Affiliate of such Lender. 
 “Responsible
Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of Borrower. 
 “Revolving Facility” means the facility under which Borrower may request Lenders to issue Advances, as specified in Section 2.1(a) hereof. 

“Revolving Line” means a credit extension of up to Twenty Five Million Dollars ($25,000,000) (inclusive of the aggregate face
amount of Letters of Credit, the aggregate limits of the Credit Card Services and any amounts outstanding under the Foreign Exchange Sublimit). 
 “Revolving Maturity Date” means March 24, 2013. 

  
 9 

 “Revolving Outstandings” means at any time, the sum of (a) the aggregate
amount of the outstanding Advances, (b) the Stated Amount of all Letters of Credit, (c) the Credit Card Reserve, and (d) the FX Reserve in effect from time to time. 

“Schedule” means the schedule attached hereto and approved by Required Lenders, if any. 

“Security Agreement” shall mean, collectively, the security agreement(s) executed and delivered by the Guarantors on the
Closing Date pursuant to Section 3.1(K) hereof, and any such agreements executed and delivered after the Closing Date (whether by execution of a joinder agreement to any existing security agreement or otherwise) pursuant to Section 6.9
hereof or otherwise, in form and substance reasonably acceptable to Collateral Agent, as amended, restated or otherwise modified from time to time. 
 “Shares” means (i) sixty-five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower in any Subsidiary of
Borrower which is not an entity organized under the laws of the United States or any territory thereof, and (ii) one hundred percent (100%) of the issued and outstanding capital stock, membership units or other securities owned or held of
record by Borrower in any Subsidiary of Borrower which is an entity organized under the laws of the United States or any territory thereof. 
 “Stated Amount” means, with respect to any Letter of Credit at any date of determination, (a) the maximum aggregate amount available for drawing thereunder under any and all circumstances,
plus (b) the aggregate amount of all unreimbursed payments and disbursements under such Letter of Credit. 

“Subordinated Debt” means any debt incurred by Borrower that is subordinated to the debt owing by Borrower to Lenders hereunder
or under any of the Loan Documents on terms reasonably acceptable to Collateral Agent (and identified as being such by Borrower and Collateral Agent) 
 “Subsidiary” means any corporation, company or partnership in which (i) any general partnership interest or (ii) more than 50% of the stock or other units of ownership which by the
terms thereof has the ordinary voting power to elect the Board of Directors, managers of trustees of the entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate. 

“Tangible Net Worth” means, at any date as of which the amount thereof shall be determined, total assets (less
goodwill/intangibles) minus Total Liabilities (which shall include Subordinated Debt, but not the Investors’ Indebtedness), on a consolidated basis determined in accordance with GAAP. 

“Total Liabilities means at any date as of which the amount thereof shall be determined, all obligations that should, in accordance
with GAAP, be classified as liabilities on the consolidated balance sheet of Borrower, including in any event all indebtedness; provided that, accrued interest on the Investors’ Indebtedness shall not be included in “Total
Liabilities” for purposes of calculating Tangible Net Worth. 
 “Trademarks” means any trademark and servicemark
rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 

“Venture Debt” means indebtedness incurred in favor of Horizon, not to exceed Twelve Million Dollars ($12,000,000), provided
that Horizon has executed an intercreditor agreement with Lenders, in form and content reasonably acceptable to Collateral Agent. 
 1.2 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP and all calculations made hereunder shall be made in accordance with GAAP. When
used herein, the terms “financial statements” shall include the notes and schedules thereto. 

  
 10 

	 	2.	LOAN AND TERMS OF PAYMENT. 

2.1 Credit Extensions. 
 Borrower promises to pay to the order of each Lender, in lawful money of the United States of America, the aggregate unpaid principal amount of all Credit Extensions made by such Lender to Borrower
hereunder Borrower shall also pay interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof. 
 (a) Revolving Advances. 
 (i) Subject to and upon the terms
and conditions of this Agreement, Borrower may request , and the Lenders agree, severally and not jointly according to each Lenders’ Loan Commitment as forth on Schedule 1.1 hereto, to make Advances in an aggregate outstanding amount not to
exceed the lesser of (i) the Revolving Line or (ii) the Borrowing Base, minus the Stated Amount of all Letters of Credit, the Credit Card Reserve and the FX Reserve in effect from time to time Subject to the terms and conditions of
this Agreement, amounts borrowed pursuant to this Section 2.1 (a) may be repaid and reborrowed at any time prior to the Revolving Maturity Date, at which time all Advances under this Section 2.1 (a) shall be immediately due and
payable. Borrower may prepay any Advances without penalty or premium. 
 (ii) Whenever Borrower desires an Advance,
Borrower will notify each Lender by facsimile transmission or telephone no later than 3.00 p.m. Pacific fine on the Business Day that the Advance is to be made. Each such notification shall be promptly confirmed by a Payment/Advance Form in
substantially the form of Exhibit B-1 (with respect to Bridge) and B.2 (with respect to Comerica) hereto. Each Lender is authorized to make Advances under this Agreement, based upon instructions received from a Responsible Officer or a
designee of a Responsible Officer, or without instructions if in such Lender’s discretion such Advances are necessary to meet Obligations which have become due and remain unpaid. Lenders shall be entitled to rely on any telephonic notice given
by a person who a Lender reasonably believes to be a Responsible Officer or a designee thereof, and Borrower shall indemnify and hold Lenders harmless for any damages or loss suffered by any Lender as a result of such reliance. Each Lender will
credit the amount of Advances made under this Section 2.1 (a) to Borrower’s deposit account maintained with each such Lender. 
 (b) Letters of Credit. 
 (i) Commitment. Subject to the
terms of this Agreement, at the request of Borrower, Issuing Lender will issue from time to time standby or documentary letters of credit, in each case for the account of Borrower and containing terms and conditions which are consistent with this
Agreement and reasonably satisfactory to Issuing Lender (each such letter of credit, a “Letter of Credit”) in an aggregate outstanding face amount not to exceed file lesser of the Revolving Line or the Borrowing base minus the
aggregate amount of the outstanding Advances at any time, the Credit Card Exposure, and the FX Amount, provided that the Stated Amount of all Letters of Credit shall not exceed $5,000,000. No Letter of Credit shall be issued (including any renewal
or extension of any Letter of Credit previously issued) unless: (a) after giving effect to each such issuance, (i) the aggregate Stated. Amount of all Letters of Credit shall not at any time exceed $5,000,000 and (ii) Revolving
Outstandings will not at any time exceed the Revolving Line, (b) the conditions set forth in Section 3 have been satisfied, (c) the issuance of the Letter of Credit would not violate one or more policies of the Issuing Lender, and
(d) no order, Judgment or decree of any Governmental Authority or arbitrator shall purport by its terms to enjoin or restrain Issuing Lender from issuing the Letter of Credit requested or any Lender from taking an assignment of its Pro Rata
Share thereof, and no law, rule, regulation, request or directive (whether or not having the force of law) shall prohibit the Issuing Lender from issuing, or any Lender from taking an assignment of its Pro Rata Share of, the Letter of Credit
requested or letters of credit generally, or will impose upon the Issuing Lender any restriction, reserve or capital requirement not in effect on the closing Date and for which the Issuing Lender is not already compensated for hereunder, or will
impose on the Issuing Lender unreimbursed loss, cost or expense that was not applicable on the Closing Date deemed to be material to it by the Issuing Lender. 
 (ii) Application. Borrower shall give notice to Issuing Lender of the proposed issuance of each Letter of Credit on a Business Day which is at least five (5) Business Days prior to the

  
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proposed date of issuance of such Letter of Credit. Each such notice shall be accompanied by a Letter of Credit application (each, an “Application”) in Issuing Lender’s form, duly
executed by Borrower and in all respects reasonably satisfactory to Issuing Lender, together with such other documentation as Issuing Lender may request in support thereof, it being understood that each Application shall specify, among other things,
the date on which the proposed Letter of Credit is to be issued, and the expiration date of such Letter of Credit. Issuing Lender shall promptly advise Comerica of the issuance of each Letter of Credit and of any amendment thereto, extension thereof
or event or circumstance changing the amount available for drawing thereunder. In the event of any inconsistency between the terms of any Application and the terms of this Agreement with respect to the content of such Application, the terms of such
Application shall control. Issuing Lender shall deliver to Comerica upon its request a list of all outstanding Letters of Credit issued by Issuing Lender, together with such information related thereto as Comerica may reasonably request. Unless
otherwise expressly agreed to by the Issuing Lender and the Borrower, the rules of the International Standby Practices 98 will apply to each Letter of Credit. 
 (iii) Reimbursement Obligations. 
 A. Borrower hereby
unconditionally and irrevocably agrees to reimburse Issuing Lender for each payment or disbursement made by Issuing Lender under any Letter of Credit honoring any demand for payment made thereunder, in each case on the date that such payment or
disbursement is made. Issuing Lender shall promptly notify Borrower and Comerica whenever any demand for payment is made under any Letter of Credit; provided, that the failure of Issuing Lender to so notify Borrower shall not affect the rights of
Issuing Lender or Lenders in any manner whatsoever Any amount not reimbursed on the date of such payment or disbursement (whether or not through the extension of an Advance pursuant to Section 2.1 (b)(iv)) shall bear interest from the date of
such payment or disbursement to the date that Issuing Lender is reimbursed by Borrower therefor, payable on demand, at the interest rate per annum from time to time in effect Advances made by Issuing Lender. 

B. Borrower’s reimbursement obligations hereunder shall be irrevocable and unconditional under all circumstances, including
(i) any lack of validity or enforceability of any Letter of Credit, any Application, this Agreement or any other Loan Document, (ii) the existence of any claim, set off, defense or other right which any Loan Party may have at any time
against a beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), Issuing Lender, any Lender or any other Person, whether in connection with any Letter of Credit,
any Application, this Agreement, any other Loan Document, the transactions contemplated herein or any unrelated transactions (including any underlying transaction between any Lender and the beneficiary named in any Letter of Credit), (iii) the
validity, sufficiency or genuineness of any document which Issuing Lender (or, as applicable, the issuer of any underlying letter of credit) has determined complies on its face with the terms of the applicable Letter of Credit (or, if applicable,
underlying letter of credit), even if such document should later prove to have been forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been untrue or inaccurate in any respect, (iv) the surrender or
impairment of any security for the performance or observance of any of the terms hereof, (v) any failure, omission, delay or lack on the part of Issuing Lender, any Lender or any party to any of the documents related to the applicable Letter of
Credit to enforce, assert or exercise any right, power or remedy conferred upon Issuing Lender, any Lender or any such party under this Agreement, any of the other Loan documents or any of the documents related to the applicable Letter of Credit, or
any other acts or omissions on the part of Issuing Lender, any Lender or any such party (vi) payment under a Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of the Letter of Credit
and (vii) any other event or circumstance whether or not similar to the foregoing including any other circumstance that might otherwise constitute a defense available to, of a discharge of, the Borrower or any Lender, except to the extent such
reimbursement obligations result from the gross negligence or willful misconduct of Issuing Lender or any Lender. 

(iv) Participations in Letters of Credit. 
 A. Concurrently with the issuance of each Letter of Credit in accordance with this Agreement, Issuing Lender shall be deemed to have sold and transferred to each other Lender, and each other Lender
shall be deemed irrevocably and unconditionally to have purchased and received from Issuing Lender, without recourse or warranty, an undivided interest and participation, to the extent of such Lender’s Pro Rata Share in such Letter of Credit
and Borrower’s reimbursement obligations with respect thereto. If Borrower 

  
 12 

 
does not pay any reimbursement obligation when due. then Borrower shall be deemed to have immediately requested that Lenders make an Advance in a principal amount equal to such reimbursement
obligation. The proceeds of such Advance shall be paid over to Issuing Lender for the account of Borrower in satisfaction of such reimbursement obligations. 
 B. If Issuing Lender makes any payment or disbursement under any Letter of Credit in accordance with this Agreement and (i) Borrower has not reimbursed Issuing Lender in full for such payment
or disbursement in accordance with Section 2.1(b)(iii), (ii) an Advance may not, for any reason, be made pursuant to Section 2.1(b)(iv)(A) or (iii) any reimbursement received by Issuing Lender from Borrower is or must be returned
or rescinded upon or during any Insolvency Proceeding of any Lender or otherwise each other Lender shall be irrevocably and unconditionally obligated to pay to Issuing Lender, promptly after Issuing Lender’s demand, its Pro Rata Share of such
payment or disbursement (but no such payment shall diminish the Obligations of Borrower under Section 2.1(b)(iii) or otherwise. 
 (v) Indemnification of Issuing Lender. Borrower hereby indemnifies and agrees to hold harmless the Lenders and the Issuing Lender and their respective Affiliates, and the respective
officers, directors, employees and agents of such Persons (each an “L/G Indemnified Person”), from and against any and all claims, damages, losses, liabilities, costs or expenses of any kind or nature whatsoever which the Lenders or the
Issuing Lender or the Collateral Agent or any such Person may incur or which may be claimed against any of them by reason of or in connection with any Letter of Credit collectively, the “L/C Indemnified Amounts”), and none of the Issuing
Lender, the Collateral Agent or any Lender or any of their respective officers, directors, employees or agents shall be liable or responsible for: 
 A. The use which may be made of any Letter of Credit or for any acts or omissions of any beneficiary in connection therewith; 

B. the validity, sufficiency or genuineness of documents or of any endorsement thereon, even if such documents should in fact
prove to be in any or all respects invalid, insufficient, fraudulent or forged; 
 C. payment by the Issuing Lender to
the beneficiary under any Letter of Credit against presentation of documents which do not strictly comply with the terms of any Letter of Credit (unless such payment resulted from the gross negligence or willful misconduct of the Issuing Lender),
including failure of any documents to bear any reference or adequate reference to such Letter of Credit; 
 D. any
error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit; or 
 E. any other event or circumstance whatsoever arising in connection with any Letter of Credit. 
 It is understood that in making any payment under a Letter of Credit the Issuing Lender will rely on documents presented to it under such Letter of Credit as to any and all matters set forth therein
without further investigation and regardless of any notice or information to the contrary. 
 With respect to subparagraphs
(A) through (E) of this subsection (v), (i) Borrower shall not be required to indemnity any L/C Indemnifies Person for any L/C Indemnified Amounts to the extent such amounts result from the gross negligence or willful misconduct of
such L/C Indemnified Person, and (ii) the Issuing Lender shall be liable to Borrower to the extent but only to the extent, of any direct, as opposed to consequential or incidental, damages suffered by Borrower which were caused by the gross
negligence or willful misconduct of the Issuing Lender or any officer, director, employee or agent of the Issuing Lender or by the Issuing Lender’s wrongful dishonor of any Letter of Credit after the presentation to it by the beneficiary
thereunder of a draft or other demand for payment and other documentation strictly complying with the terms and conditions of such Letter of Credit. 
 (c) Corporate Credit Cards. Borrower may obtain corporate credit cards (“Credit card Services”) issued for its account from Bridge, provided that the aggregate limit of such corporate
credit cards 

  
 13 

 
issued by Bridge (“Credit Card Exposure”) shall not exceed $100.000 at any time outstanding. A reserve (“Credit Card Reserve”) shall be established against availability under
the Borrowing Base in the maximum amount of the Credit Card Exposure. The terms and conditions (including repayment and fees) of such Credit Card Services shall be subject to the terms and conditions of Bridge’s standard forms of application
and agreement for the Credit Card Services, which Borrower hereby agrees to execute as a condition precedent to the use of the Credit Card Services. All corporate credit cards will be cancelled on and no further Credit Card Services will be provided
after the Revolving Maturity Date. 
 (d) Foreign Exchange Sublimit. Subject to and upon the terms and conditions
of this Agreement and any other agreement that Borrower may enter into with any Lender in connection with foreign exchange transactions (“FX Contracts”), Borrower may request that a Lender agree severally and not jointly, to enter into FX
Contracts with Borrower expiring not later than the Revolving Maturity Date, and a Lender may agree (if it so elects) to do so (provided that no Lender shall have any obligation to enter into FX Contracts). Borrower shall pay any standard issuance
and other fees that each Lender notifies Borrower will be charged for issuing and processing FX Contracts for Borrower. The aggregate FX Amount shall at all times be equal to or less than Two Million Five Hundred Thousand Dollars ($2,500,000) for
all FX Contracts entered into with Lenders hereunder. In addition, no single Lender shall have an aggregate FX Amount in excess of $1,250,000. The “FX Amount” shall equal the amount determined by multiplying (i) the aggregate amount
in United States Dollars, of FX Contracts between Borrower and any participating Lender remaining outstanding as of any date of determination by (ii) the applicable Foreign Exchange Reserve percentage as of such date. The “Foreign Exchange
Reserve Percentage” shall be a percentage as determined by each Lender, in its sole discretion from time to time. The initial Foreign Exchange Reserve Percentage shall be ten percent (10%). A reserve (the “FX Reserve”) shall be
established against availability under the Borrowing Base in the aggregate FX Amount in effect from time to time. Each Lender shall advise the other Lenders and the Collateral Agent in writing promptly upon entering into an FX Contract with Borrower
(with a copy to Borrower), specifying in such notice the FX Amount related to such Contract. Lenders shall be entitled to receive collection proceeds under Section 9.4 in respect of FX Contracts entered into by it with Borrowed up to the amount
of the FX Reserve applicable to such FX Contracts (until the amount of such reserve has been exhausted) in the chronological order in which such contracts have been entered into. Once the amount of the FX Reserve has been exhausted, no additional
collection proceeds shall be available for application against the Borrower’s Obligations under FX Contracts until all other Obligations have been paid and discharged in full. 

(e) Collateralization of Obligations Extending Beyond Maturity. If Borrower has not secured to the relevant Lender satisfaction
Borrower’s obligations with respect to any Letters of Credit, Credit Card Services, or FX Contracts that may extend beyond the Revolving Maturity Date, then, effective as of the Revolving Maturity Date the balance in any deposit accounts held
by any such issuing Lender and the certificates of deposit or time deposit accounts issued by such Lender in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of
such certificates or accounts), shall automatically secure such obligations to the extent of the then continuing or outstanding Stated Amount of Letters of Credit, Credit Card Services or FX Contracts; provided, however, that if there are
insufficient balances in such accounts to secure such obligations, Borrower shall immediately deposit such additional funds in the relevant Lenders, accounts as are necessary to fully secure such obligations. Borrower authorizes each Lender to hold
such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit, Credit Card Services or FX Contracts are
outstanding or continue. 
 2.2 Overadvances. If the Revolving Outstandings exceeds the lesser of the Revolving Line of
the Borrowing Base at any time, Borrower shall immediately pay to Lenders, in cash, each Lender’s Pro Rata Share of the amount of such excess, for application against the outstanding Advances, or to be held as cash collateral. 

2.3 Interest Rates, Payments, and Calculations. 
 (a) Interest Rate for Advances. Except as set forth in Section 2.3(b), the Advances shall bear interest, on the outstanding Daily Balance thereof, at a rate equal to one and one quarter
percent (1.25%) above the Prime Rate. 

  
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 (b) Late Fee; Default Rate. If any payment is not made within ten (10) days
after the date such payment is due, Borrower shall pay Lenders a late fee equal to the lesser of (i) five percent (5%) of the amount of such unpaid amount or (ii) the maximum amount permitted to be charged under applicable law, not in
any case to be less than $25.00. All Obligations shall bear interest, from and after the occurrence and during the continuance of an Event of Default, at a rate equal to five (5) percentage points above the interest rate applicable immediately
prior to the occurrence of the Event of Default. 
 (c) Payments. Interest hereunder shall be due and payable on the
tenth-(10th) calendar day of each month during the term hereof. Lenders shall, at their option, charge such interest, all Lender Expenses, and all Periodic Payments against any of Borrower’s deposit accounts maintained with such Lender or
against the Revolving Line, in which case those amounts shall thereafter accrue interest at the rate then applicable hereunder. Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest shall
thereafter accrue interest at the rate then applicable hereunder. All payment shall be free and clear of any taxes, withholdings, duties, impositions or other charges, to the end that Lenders will receive the entire amount of any Obligations payable
hereunder, regardless of source of payment. 
 (d) Computation. In the event the Prime Rate is changed from time to time
hereafter, the applicable rate of interest hereunder shall be increased or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate. All interest chargeable under the Loan Documents shall be
computed on the basis of a three hundred sixty (360) day year for the actual number of days elapsed. 
 (e)
Remittances; Lockbox Account Collection Services. Within sixty (60) days after the Closing Date and at all times thereafter, Borrower shall (i) notify, transfer and deliver to Bridge all payments in respect of Accounts Borrower
receives (other than the Permitted Foreign Cash), and (ii) enter into a collection services agreement reasonably acceptable to Bridge (the “Lockbox Agreement”). Borrower shall use the lockbox address as the remit to and payment
address for all of Borrower’s Accounts (other than the Permitted Foreign Cash) and it will be considered an immediate Event of Default if this does not occur or the lockbox is not operational within sixty (60) days of the Closing Date.
Prior to the establishment of the Lockbox Account, Borrower may continue to use the remote deposit check scanner to deposit checks to Borrower’s operating account maintained with Bridge. Notwithstanding the foregoing, Lenders acknowledge and
agree that Borrower’s non-U.S. customers shall send payments to Borrower’s foreign subsidiaries, which will subsequently (other than the Permitted Foreign Cash) (but within five (5) days of receipt thereof) remit payments of Borrower
on account of Accounts receivable through the lockbox. Prior to the occurrence of an Event of Default, all amounts received to the Lockbox Account or otherwise received by Bridge shall be credited to Borrower’s operating account with Bridge;
after the occurrence and during the continuance of an Event of Default, Bridge may apply such amounts to the Obligations in the Lender’s sole discretion subject to Lenders’ rights to receive ratable distributions in respect of the
Obligations owing to it in accordance with Section 9.4. 
 2.4 Crediting Payments. Prior to the occurrence of an
Event of Default, each Lender shall credit a wire transfer of funds, check or other item of payment to such deposit account or Obligation as Borrower specifies. After the occurrence and during the continuance of an Event of Default, the receipt by a
Lender of any wire transfer of funds, check, or other item of payment shall be promptly applied to conditionally reduce Obligations, but shall not be considered a payment on account unless such payment is of immediately available federal funds or
unless and until such check or other item of payment is honored when presented for payment. Notwithstanding anything to the contrary contained herein, any wire transfer or payment received by a Lender after 12.00 noon Pacific time shall be deemed to
have been received by such Lender as of the opening of business on the immediately following Business Day. Whenever any payment to a Lender under the Loan Documents would otherwise be due (except by reason of acceleration) on a date that is not a
Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period of such extension. 

2.5 Fees. Borrower shall pay to Lenders the following: 

  
 15 

 (a) Facility Fee. On the Closing Date and the first anniversary thereof, a facility
fee equal to One Hundred Thousand Dollars ($100,000), to be shared between the Lenders pursuant to their respective Commitment Percentages, which shall be nonrefundable; and 
 (b) Letter of Credit Fees. 
 (i) Borrower agrees to pay to Issuing
Lender on demand, for the account of each Lender according to such Lender’s Pro Rata Share (as adjusted from time to time), any fees as to each Letter of Credit as have been agreed to by Borrower and Lenders. 

(ii) In addition, with respect to each Letter of Credit, Borrower agrees to pay to Issuing Lender, for its own account,
(i) such fees and reasonable out-of-pocket expenses as Issuing Lender customarily requires (or, as the case may be, is required to pay to the issuer of the letter of credit) in connection with the issuance, negotiation, processing and/or
administration of letters of credit in similar situations and (ii) a letter of credit fronting fee in the amount and at the times agreed to by Borrower and Issuing Lender. 

(c) Lender Expenses. On the Closing Date, all Lender Expenses incurred through the Closing Date, including reasonable
attorneys’ fees and expenses and, after the Closing Date, all Lender Expenses, including reasonable attorneys’ fees and expenses, as and when they are incurred by Bank. 

2.6 Term. This Agreement shall become effective on the Closing Date and, subject to Section 12.7, shall continue in full
force and effect for so long as any Obligations (other than inchoate indemnity obligations) remain outstanding or any Lender has any obligation to make Credit Extensions under this Agreement. Notwithstanding the foregoing, Lenders shall have the
right to terminate their obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default. Notwithstanding termination, Lenders’ Liens on the
Collateral shall remain in effect for so long as any Obligations (other than inchoate indemnity obligations) are outstanding. 

2.7 Administration. Lenders have elected to administer this Agreement without designating an administrative agent. To facilitate
the administration of this Agreement, each Lender agrees (but without liability to Borrower or the other Lenders for failing to do so) to advise the other Lenders promptly of any Advances, Letters of Credit or FX Contracts made, issued or entered
into by it, and of any payments received by it (whether voluntary payments, setoff amounts, automatic payments by debit to accounts maintained by borrower with it or otherwise). Furthermore, to the extent Advances properly made by any Lender exceed
the amounts which should have been funded or carried by such Lender, as the case may be, based on its applicable Loan Commitment, the other Lenders shall (to the extent such Lenders have not funded or are not carrying outstanding Advances based on
their applicable Loan Commitment) purchase participations in such overfunded Lender’s Advances (or otherwise adjust the amount of their outstandings by mutual agreement), until the amount of such overfunding has been eliminated. 

 

	 	3.	CONDITIONS OF LOANS. 

 3.1 Conditions Precedent to Initial Credit Extension. The obligation of each Lender to make the initial Credit Extension is subject to the condition precedent that Lenders shall have received, in
form and substance satisfactory to Lenders, the following: 
 (a) this Agreement; 

(b) a certificate of the Secretary of Borrower with respect to incumbency and resolutions authorizing the execution and delivery
of this Agreement; 
 (c) UCC National Form Financing Statement Amendment; 

(d) an Amended and Restated Intercreditor Agreement, duly executed by ATEL with respect to the ATEL Indebtedness; 

  
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 (e) an Amended and Restated Intercreditor Agreement, duly executed by Horizon with
respect to the Venture Debt; 
 (f) (i) agreement to provide insurance and (ii) insurance authorization letter
in the forms attached hereto; 
 (g) payment of the fees and Lender Expenses then due specified in Section 2.5
hereof; 
 (h) current financial statements of Borrower; 

(i) an audit of the Collateral, the results of which shall be satisfactory to Lenders; and 

(j) such other documents, and completion of such other matters, as Lenders may reasonably deem necessary or appropriate.

 3.2 Conditions Precedent to all Credit Extensions. The obligation of Lenders to make each Credit Extension, including
the initial Credit Extension, is further subject to the following conditions: 
 (a) timely receipt by each Lender of
the Payment/Advance Form as provided in Section 2.1; and 
 (b) the representations and warranties contained in
Section 5 shall be true and correct in all material respects on and as of the date of such Payment/Advance Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have
occurred and be continuing, or would exist after giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as
of such date). The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2. 

 

	 	4.	CREATION OF SECURITY INTEREST. 

4.1 Grant of Security Interest. Borrower grants and pledges to Collateral Agent, for the ratable benefit of each Lender, a
continuing security interest in all presently existing and hereafter acquired or arising Collateral in order to secure prompt repayment of any and all Obligations and in order to secure prompt performance by Borrower of each of its covenants and
duties under the Loan Documents. Except as set forth in the Disclosure Letter, such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first priority security
interest in Collateral acquired after the date hereof. 
 4.2 Delivery of Additional Documentation Required. Borrower
shall from time to time execute and deliver to the Collateral Agent, at the request of any Lender, all Negotiable Collateral, all financing statements and other documents that such Lender may reasonably request, in form reasonably satisfactory to
Required Lenders, to perfect and continue the perfection of Lenders’ security interests in the Collateral and in order to fully consummate all of the transactions contemplated under the Loan Documents. Subject to the requirements of Sections
6.7 and 9.4, Borrower from time to time may deposit with each Lender specific time deposit accounts to secure specific Obligations. 
 4.3 Right to Inspect. Collateral Agent and the Lenders (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice and at Borrower’s sole expense,
from time to time during Borrower’s usual business hours but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect Borrower’s Books and to make copies thereof and to check, test, and appraise the
Collateral in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to the Collateral. 

  
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 4.4 Pledge of Collateral. To the extent permitted by applicable law and the terms and
conditions governing the Shares, Borrower hereby pledges, assigns and grants to Collateral Agent, for the ratable benefit of each Lender, a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock
and other moneys and property paid thereon, all rights to subscribe for securities declared of granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations. To the
extent permitted by applicable law and the terms and conditions governing the Shares, within sixty (60) days of the Closing Date, the certificate or certificates for the Shares will be delivered to Collateral Agent, accompanied by an instrument
of assignment duly executed in blank by Borrower. To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to reflect the
pledge of any applicable Shares. Upon the occurrence and during the continuance of an Event of Default hereunder. Collateral Agent, for the ratable benefit of each Lender, may effect the transfer of any securities included in the Collateral
(including but not limited to the Shares) into the name of Collateral Agent and cause new certificates representing such securities to be issued in the name of Collateral Agent or its transferee. Borrower will execute and deliver such documents, and
take or cause to be taken such actions, as Collateral Agent may reasonably request to perfect or continue the perfection of Collateral Agent’s security interest in the Shares. Unless an Event of Default shall have occurred and be continuing,
Borrower shall be entitled to exercise any voting rights with respect to the Shares and to give consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken
which would be inconsistent with any of the terms of this Agreement or which would constitute or create any violation of any of such terms. All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and
continuance of an Event of Default. 
  

	 	5.	REPRESENTATIONS AND WARRANTIES. 

Borrower represents and warrants as follows: 
 5.1 Due Organization and Qualification. Borrower and each Subsidiary is a corporation duly existing under the laws of its state of incorporation and qualified and licensed to do business in any
state in which the conduct of its business or its ownership of property requires that it be so qualified. 
 5.2 Due
Authorization; No Conflict. The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in
Borrower’s Articles of Incorporation or Bylaws, nor will they constitute an event of default under any material agreement to which Borrower is a party or by which Borrower is bound. Borrower is not in default under any material agreement to
which it is a party or by which it is bound. 
 5.3 No Prior Encumbrances. Borrower has good and marketable title to its
property, free and clear of Liens, except for Permitted Liens. 
 5.4 Bona Fide Eligible Accounts. The Eligible Accounts
are bona fide existing obligations. The property and services giving rise to such Eligible Accounts has been delivered or rendered to the account debtor or to the account debtor’s agent for immediate and unconditional acceptance by the account
debtor. Borrower has not received notice of actual or imminent Insolvency Proceeding of any account debtor that is included in any Borrowing Base Certificate as an Eligible Account. 

5.5 Merchantable Inventory; Eligible Inventory. All Inventory is in all material respects of good and marketable quality free from
all material defects, except for Inventory for which adequate reserves have been made. For any item of Inventory consisting of “Eligible Inventory” in any Borrowing Base Certificate, such Inventory (a) consists of finished goods, in
good, new, and merchantable condition, which is not perishable, in transit, returned, consigned, obsolete, not merchantable, damaged, or defective, and is not comprised of demonstrative or custom inventory, works in progress, packaging or shipping
materials, or supplies; (b) meets all applicable standards established by any applicable Governmental Authority having regulatory authority over such Inventory; (c) has been manufactured in compliance with the applicable Fair Labor
Standards Act with respect to such Inventory; (d) is not subject to any Liens, except the first priority Liens granted or in favor of Lenders under this Agreement or any of the other Loan Documents and Permitted Liens; and (e) is located
only in the United 

  
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States, and, in the case of Inventory in the possession of any third party, Lenders have received written acknowledgment of Lenders’ prior lien therein, in form and content reasonably
acceptable to Required Lenders. 
 5.6 Intellectual Property. Borrower is the sole owner of the Intellectual Property,
except for non-exclusive licenses granted by Borrower to its customers in the ordinary course of business. Each of the Patents is valid and enforceable, and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or
in part, and to the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party. Except as set forth in the Disclosure Letter, Borrower is not a party to, or bound by,
any agreement that restricts the grant by Borrower of a security interest in Borrower’s rights under such agreement. 

5.7 Name; Location of Chief Executive Office. Except as disclosed in the Disclosure Letter, Borrower has not done business under
any name other than that specified on the signature page hereof. As of the date hereof, the chief executive office of Borrower is located at the address indicated in Section 10 hereof. All Borrower’s Inventory and Equipment with an
aggregate value in excess of $50,000 is located only at Flextronics (international or domestic locations; subject to a bailee agreement (over domestic Inventory) in form and content reasonably acceptable to Required Lenders) or the location set
forth in Section 10 hereof or in the Disclosure Letter. 
 5.8 Litigation. Except as set forth in the Disclosure
Letter, there are no actions or proceedings pending by or against Borrower or any Subsidiary before any court or administrative agency in which an adverse decision could have a Material Adverse Effect or a material adverse effect on Borrower’s
interest or Lenders’ security interest in the Collateral. 
 5.9 No Material Adverse Change in Financial Statements.
All consolidated and consolidating financial statements related to Borrower and any Subsidiary that Lenders have received from Borrower fairly present in all material respects Borrower’s financial condition as of the date thereof and
Borrower’s consolidated and consolidating results of operations for the period then ended. There has not been a material adverse change in the consolidated or the consolidating financial condition of Borrower since the date of the most recent
of such financial statements submitted to Lenders. 
 5.10 Solvency, Payment of Debts. Borrower is able to pay its debts
(including trade debts) as they mature. 
 5.11 Regulatory Compliance. Borrower and each Subsidiary have met the minimum
funding requirements of ERISA with respect to any employee benefit plans subject to ERISA, and no event has occurred resulting from Borrower’s failure to comply with ERISA that could result in Borrower’s incurring any material liability.
Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one of the important
activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has complied with all the provisions
of the Federal Fair Labor Standards Act. Borrower has not violated any statutes, laws, ordinances or rules applicable to it, violation of which could have a Material Adverse Effect. 

5.12 Environmental Condition. Except as disclosed in the Disclosure Letter, none of Borrower’s or any Subsidiary’s
properties or assets has ever been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous owners or operators, in the disposal of, or to produce, store, handle, treat, release or transport, any hazardous waste
or hazardous substance other than in accordance with applicable law; to the best of Borrower’s knowledge, none of Borrower’s properties or assets has ever been designated or identified in any manner pursuant to any environmental protection
statute as a hazardous waste or hazardous substance disposal site or a candidate for closure pursuant to any environmental protection statute; no lien arising under any environmental protection statute has attached to any revenues or to any real or
personal property owned by Borrower or any Subsidiary, and neither Borrower nor any Subsidiary has received a summons, citation, notice, or directive from the Environmental Protection Agency or any other federal, state or other governmental agency
concerning any action or omission by Borrower or any Subsidiary resulting in the releasing, or otherwise disposing of hazardous waste or hazardous substances into the environment. 

  
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 5.13 Taxes. Borrower and each Subsidiary have filed or caused to be filed all
material tax returns required to be filed, and have paid, or have made adequate provision for the payment of, all material taxes reflected therein. 
 5.14 Subsidiaries. Borrower does not own any stock, partnership interest or other equity securities of any Person, except for Permitted Investments. 

5.15 Government Consents. Borrower and each Subsidiary have obtained all material consents, approvals and authorizations of, made
all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of Borrower’s business as currently conducted. 

5.16 Accounts. Except as set forth in Section 6.7, none of Borrower’s nor any Subsidiary’s cash or investment
property is maintained or invested with a Person other than Lenders. 
 5.17 Shares. Borrower has full power and
authority to create a first lien on any Shares pledged and delivered to Collateral Agent and no disability or contractual obligation exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement. To Borrower’s
knowledge, there are no subscriptions, warrants, rights of first refusal or other restrictions on transfer relative to, or options exercisable with respect to the Shares. The Shares have been and will be duly authorized and validly issued, and are
fully paid and non-assessable. To Borrower’s knowledge, the Shares are not the subject of any present or threatened in writing suit, action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable grounds for the
institution of any such proceedings. 
 5.18 Full Disclosure. No representation, warranty or other statement made by
Borrower in any certificate or written statement furnished to any Lender contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained in such certificates or statements not
misleading. 
  

	 	6.	AFFIRMATIVE COVENANTS. 

 Borrower shall do all of the following: 
 6.1 Good Standing. Borrower shall
maintain its and each of its Subsidiaries’ corporate existence and good standing in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which it is required under applicable law. Borrower shall maintain, and
shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which could have a Material Adverse Effect. 
 6.2 Government Compliance. Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA.
Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject, noncompliance with which could have a Material Adverse Effect. 

6.3 Financial Statements, Reports, Certificates. Borrower shall deliver the following to Lenders: (a) (i) as soon as
available, but in any event within thirty (30) days after the end of each calendar month, a company prepared consolidated balance sheet, income statement, and cash flow statement covering Borrower’s consolidated operations during such
period, prepared in accordance with GAAP, consistently applied, in a form acceptable to Lenders and certified by a Responsible Officer; and (ii) as soon as available, but in any event within thirty (30) days after the end of each calendar
quarter, a company prepared consolidating balance sheet, income statement, and cash flow statement covering Borrower’s consolidating operations during such period, prepared in accordance with GAAP, consistently applied, in a form acceptable to
Lenders and certified by a Responsible Officer; (b) as soon as available, but in any event within one hundred eighty (180) days after the end of Borrower’s fiscal year (beginning with the 2010 fiscal year), audited consolidated
financial statements of Borrower prepared in accordance with GAAP, consistently applied, together with an unqualified opinion (other than a qualification for a 

  
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going concern) on such financial statements of an independent certified public accounting firm reasonably acceptable to Required Lenders; (c) copies of all statements, reports and notices
sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and, if applicable, all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; (d) promptly upon receipt of
notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of Two Hundred Fifty Thousand Dollars ($250,000) or more; (e) such
budgets, sales projections, operating plans or other financial information as any Lender may reasonably request from time to time including, as soon as available, but in any event no later than thirty (30) days after the end of Borrower’s
fiscal year, an annual operating budget approved by Borrower’s board of directors; and (f) (i) within thirty (30) days of the last day of each year, a report signed by Borrower, in form reasonably acceptable to Lenders, listing
any applications or registrations that Borrower has made or filed in respect of any Patents, Copyrights of Trademarks and the status of any outstanding applications or registrations, as well as any material change in Borrower’s intellectual
property and (ii) promptly after filing, written notice of the filing of any applications or registrations with the United States Patent and Trademark Office and the United States Copyright Office, including the date of such filing and the
registration or application numbers, if any. 
 Within twenty (20) days after the last day of each month, Borrower shall
deliver to Lenders a Borrowing Base Certificate signed by a Responsible Officer in substantially the form of Exhibit C hereto, together with (i) aged listings of accounts receivable and accounts payable, and (ii) perpetual inventory
reports for the Inventory valued on a first-in, first-out basis at the lower of cost or market (in accordance with GAAP) and/or such other inventory reports as are requested by Lenders in their good faith business judgment. 

Borrower shall deliver to Lenders with the monthly financial statements a Compliance Certificate signed by a Responsible Officer in
substantially the form of Exhibit D hereto and a deferred revenue report. 
 Lenders shall have a right from time to time
hereafter (x) to audit Borrower’s Accounts, provided that such audits will be conducted (i) within thirty (30) days of the Closing Date; and (ii) no more often than every six (6) months thereafter unless an Event of
Default has occurred and is continuing; and (y) to appraise Collateral (including but not limited to the Inventory) (i) prior to any Advance against the “Eligible Inventory;” and (ii) every twelve (12) months thereafter
unless an Event of Default has occurred and is continuing; in each case of (x) and (y), at Borrower’s expense. 

6.4 Inventory; Returns. Borrower shall keep all Inventory in good and marketable condition, free from all material defects except
for Inventory for which adequate reserves have been made. Returns and allowances, if any as between Borrower and its account debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist at the
time of the execution and delivery of this Agreement. Borrower shall promptly notify Lenders of all returns and recoveries and of all disputes and claims, where the return, recovery, dispute or claim involves more than Two Hundred Fifty Thousand
Dollars ($250,000). 
 6.5 Taxes. Borrower shall make, and shall cause each Subsidiary to make, due and timely payment or
deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, and will execute and deliver to Lenders, on demand, appropriate certificates attesting to the payment or deposit thereof; and Borrower will
make, and will cause each Subsidiary to make, timely payment or deposit of all material tax payments and withholding taxes required of it by applicable laws, including, but not limited to, those laws concerning F.I.C.A., F.U.T.A., state disability,
and local, state, and federal income taxes, and will, upon request, furnish Lenders with proof reasonably satisfactory to Lenders indicating that Borrower or a Subsidiary has made such payments or deposits, provided that Borrower or a Subsidiary
need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower. 

6.6 Insurance. 
 (a) Borrower, at its expense, shall keep the Collateral insured against loss or damage by fire theft, explosion, sprinklers, and all other hazards and risks, and in such amounts, as ordinarily
insured against by other owners in similar businesses conducted in the locations where Borrower’s business is 

  
 21 

 
conducted on the date hereof. Borrower shall also maintain insurance relating to Borrower’s business, ownership and use of the Collateral in amounts and of a type that are customary to
businesses similar to Borrower’s. 
 (b) All such policies of insurance shall be in such form with such companies,
and in such amounts as are reasonably satisfactory to Collateral Agent. All such policies of property insurance shall contain a lender’s loss payable endorsement, in a form reasonably satisfactory to Collateral agent, showing each Lender as an
additional loss payee thereof, and all liability insurance policies shall show each Lender as an additional insured and shall specify that the insurer must give at least twenty (20) days notice to Collateral Agent before canceling its policy
for any reason. Upon any Lenders’ request, Borrower shall deliver to Lenders certified copies of such policies of insurance and evidence of the payments of all premiums therefor. All proceeds payable under any such policy shall, at the option
of Lenders, be payable to Collateral Agent, for the benefit of the Lenders according to their Pro Rata Share, to be applied on account of the Obligations. 
 6.7 Accounts. Borrower shall maintain (x) its primary operating accounts with Bridge, which accounts shall represent at least 50% of the dollar value of Borrower’s accounts at all
financial institutions; (y) at least 30% of the dollar value of Borrower’s accounts at all financial institutions with Comerica; and (z) at least One Million Dollars ($1,000,000) in a non interest-bearing demand deposit account with
each of Bridge and Comerica; provided that (i) in the event Borrower obtains an advance of the Investors’ Indebtedness, Borrower shall maintain at least Two Million Dollars ($2,000,000) in a non interest-bearing demand deposit account with
each of Bridge and Comerica; (ii) in the event Borrower’s quarterly revenue is less than eighty percent (80%) of Borrower’s Board-approved forecast submitted to Lenders in accordance with Section 6.3 (the “Approved
Forecast”), Borrower shall, until such time as Borrower achieves and maintains two (2) consecutive quarters of quarterly revenue equal to or greater than eighty percent (80%) of the Approved Forecast (the “Initial Revenue
Cure”), maintain consolidated, unrestricted cash in a non interest-bearing demand deposit account with Bridge in the amount of at least Three Million Dollars ($3,000,000) (or, Four Million Dollars ($4,000,000) in the event Borrower has obtained
an advance of the Investors’ Indebtedness), and with Comerica in the amount of at least Two Million Dollars ($2,000,000) (or, Three Million Dollars ($3,000,000) in the event Borrower has obtained an advance of the Investors’ Indebtedness);
provided that, in the event that, after the Initial Revenue Cure, Borrower’s quarterly revenue is less than eighty percent (80%) of the Approved Forecast, Borrower shall at all times thereafter maintain consolidated, unrestricted cash in a
non interest-bearing demand deposit account with Bridge in the amount of at least Three Million Dollars ($3,000,000) (or, Four Million Dollars ($4,000,000) in the event Borrower has obtained an advance of the Investors’ Indebtedness), and with
Comerica in the amount of at least Two Million Dollars ($2,000,000) (or, Three Million Dollars ($3,000,000) in the event Borrower has obtained an advance of the Investors’ Indebtedness); (iii) Borrower may continue to maintain its existing
account with Bank of the West with a balance not to exceed Five Thousand Dollars ($5,000) (with respect to which a control agreement shall not be required); (iv) Borrower may maintain up to five percent (5.00%) of consolidated cash in its
existing accounts held outside the United States to support Borrower’s Foreign Subsidiaries (“Permitted Foreign Cash”), provided that if amounts in such accounts exceed five percent (5.00%) of consolidated cash, Borrower shall,
within five (5) calendar days, cause such excess amount to be transferred to an account with Bridge or Comerica; and (v) Borrower shall not, and shall not permit any Subsidiary, to open any accounts other than those described herein,
without Required Lenders’ prior written consent (which consent shall not be unreasonably withheld). 
 6.8 Financial
Covenants. Borrower shall at all times maintain the following financial covenants and ratios: 
 (a) Asset Coverage
Ratio. A ratio of (a) unrestricted cash at Lenders (and at financial institutions (permitted in accordance with Section 6.7) subject to control agreements in favor of, and in form and content reasonably acceptable to, Collateral Agent,
for the ratable benefit of the Lenders (including that amounts subject to such accounts must be credited first to accounts with either Lender before being credited elsewhere)) plus Eligible Accounts plus Eligible Inventory (not to exceed to the
lesser of fifty percent (50%) of Eligible Accounts or Ten Million Dollars ($10,000,000)) to (b) all Obligations owing from Borrower to Lenders (including the face amount of any issued but undrawn Letters of Credit, the aggregate amount
outstanding on account of the Credit Card Services and any amounts outstanding under the Foreign Exchange Sublimit), measured monthly, of at least 1.50 to 1.00. 

  
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 (b) Tangible Net Worth. Tangible Net Worth of at least Eight Million Dollars
($8,000,000), increasing by (i) twenty five percent (25%) of New Equity, (ii) twenty five percent (25%) of the principal amount of the Investors’ Indebtedness actually advanced to Borrower after the initial advance
thereunder, (regardless of the amount of such initial advance thereunder), and (iii) and seventy percent (70%) of quarterly net profit after tax, if a positive number (determined in accordance with GAAP), not to exceed Ten Million Dollars
($10,000,000) through December 31, 2011, measured quarterly. 
 6.9 Future Subsidiaries; Additional Collateral. With
respect to each Person which becomes a Subsidiary of Borrower (directly or indirectly) subsequent to the Closing Date, Borrower Shall cause such new Subsidiary to execute and deliver to the Collateral Agent, for and on behalf of each of the Lenders:

 (a) within thirty (30) days after the date such Person becomes a Domestic Subsidiary, a Guaranty, or in the
event that a Guaranty already exists, a joinder agreement to the Guaranty whereby such Domestic Subsidiary becomes obligated as a Guarantor under the Guaranty; 
 (b) within thirty (30) days after the date such Person becomes a Domestic Subsidiary, a joinder agreement to the Security Agreement whereby such Domestic Subsidiary grants a Lien over its
assets as set forth in the Security Agreement, and such Domestic Subsidiary shall take such additional actions as may be necessary to ensure a valid first priority perfected Lien over such assets of such Domestic Subsidiary, subject only to the
other Liens permitted pursuant to this Agreement and 
 (c) within thirty (30) days after the date such Person
becomes a Subsidiary, a pledge agreement with respect to the Shares of such Subsidiary, and such other instruments as may reasonably be requested by Collateral Agent to perfect a security interest in the Shares of such Subsidiary, all in form and
content reasonably acceptable to Collateral Agent, except to the extent (i) prohibited by applicable law, and (ii) prohibited by the documents governing such Shares. 
 6.10 Share Pledges. Borrower shall, within sixty (60) days of the Closing Date, cause to be delivered to Collateral Agent such documents and agreements as Collateral Agent reasonable deems
necessary to perfect Collateral Agent’s security interest in Shares of Borrower’s Foreign Subsidiaries, except to the extent (i) prohibited by applicable law, and (ii) prohibited by the documents governing such Shares.

 6.11 Further Assurances. At any time and from time to time Borrower shall execute and deliver such further instruments
and take such further action as may reasonably be requested by any Lender to effect the purposes of this Agreement. 
  

	 	7.	NEGATIVE COVENANTS. 

 Borrower will not do any of the following without Lenders’ prior written consent, which shall not be unreasonably withheld: 
 7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively, a “Transfer”) or permit any of its Subsidiaries to Transfer, all or any part of its business or
property, other than: (i) Transfers of Inventory in the ordinary course of business; (ii) Transfers of non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of
business and of 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 discreet geographical areas outside
of the United States; (iii) Transfers of surplus, worn-out or obsolete Equipment which was not financed by a Lender; (iv) Transfers in connection with Permitted Liens and Permitted Investments; (v) transfers from any Subsidiary to
Borrower and from any Foreign Subsidiary to another Foreign Subsidiary; (vi) transfers permitted under Sections 7.3, 7.6, and 7.7; and (vii) Transfers that are not otherwise permitted under this Section 7.1 in an amount not to exceed
Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal year. 
 7.2 Change in Business; Change in
Control or Executive Office. Engage in any business, or permit any of its Subsidiaries to engage in any business, other than the businesses currently engaged in by 

  
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Borrower and any business substantially similar or related thereto (or incidental thereto); or cease to conduct business in the manner conducted by Borrower as of the Closing Date; or suffer or
permit a Change in Control; or without thirty (30) days prior written notification to Lenders, relocate its chief executive office or state of incorporation or change its legal name; or without Required Lenders’ prior written consent,
change the date on which its fiscal year ends. Lender acknowledges receipt of notice that as of the date of this Agreement Borrower intends to relocate its principal place of business. 

7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any
other business organization, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, provided that a Subsidiary may merge or consolidate into another Subsidiary or into
Borrower. 
 7.4 Indebtedness. Create, incur, assume or be or remain liable with respect to any Indebtedness, or
permit any Subsidiary so to do, other than Permitted Indebtedness. 
 7.5 Encumbrances. Create, incur, assume or suffer
to exist any Lien with respect to any of its property, including intellectual property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted
Liens, or agree with any Person, other than Lenders and any holders of Permitted Indebtedness under clauses (b), (c), (d), (f) and (g) of such defined term, not to grant a security interest in, or otherwise encumber, any of its property,
including intellectual property, or permit any Subsidiary to do so. 
 7.6 Distributions. Pay any dividends or make any
other distribution or payment on account of or in redemption, retirement or purchase of any capital stock (or permit any of its Subsidiaries to do so), except that Borrower may (i) pay dividends in capital stock, (ii) repurchase the stock
of employees, officers or directors pursuant to stock repurchase agreements or stock purchase plans as long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase,
(iii) repurchase the stock of employees, officers or directors pursuant to stock repurchase agreements or stock purchase plans by the cancellation of indebtedness owed by such employees to Borrower regardless of whether an Event of Default
exists, (iv) convert any of its convertible securities (including warrants) into other securities pursuant to the terms of such convertible securities, and (v) distribute securities to employees, officers or directors on the exercise of
their options. 
 7.7 Investments. 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; or, subject to Section 6.7, maintain or invest any of its property with a Person other than a Lender or permit any of its Subsidiaries to do so unless such Person has
entered into an account control agreement with Lenders in form and substance reasonably satisfactory to Required Lenders, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying
dividends or otherwise distributing property to Borrower. 
 7.8 Transactions with Affiliates. Directly or indirectly
enter into or permit to exist any material transaction with any Affiliate of Borrower except for (i) transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower
than would be obtained in an arm’s length transaction with a non-affiliated Person or are otherwise approved by the disinterested members of Borrower’s board of directors, (ii) Borrower’s sale of equity and debt securities
(provided that such debt securities constitute Subordinated Debt) to venture capital or other strategic investors (including but not limited to the Investors’ Indebtedness, provided the same is subject to the Investors Subordination Agreement
prior to any credit extension thereunder), (iii) reasonable and customary fees paid to members of the Board of Directors of Borrower and its Subsidiaries, (iv) employment arrangements with executive officers entered into in the ordinary
course of business, on fair and reasonable terms, as approved by Borrower’s Board of Directors, or (v) any transaction between Borrower and its Subsidiaries or between Borrower’s Subsidiaries constituting Permitted Investments and/or
Permitted Indebtedness. Without limiting the foregoing, but subject to Collateral Agent’s receipt of the Investors Subordination Agreement, Collateral Agent and Lenders hereby acknowledge and agree that Borrower may execute, deliver and perform
the terms and conditions of the Investors’ Note Purchase Agreement. 
 7.9 Subordinated Debt. Make any payment in
respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt or 

  
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any intercreditor or subordination agreement, or amend any provision contained in any documentation relating to the Subordinated Debt without Required Lenders’ prior written consent.

 7.10 Inventory and Equipment. Store the Inventory or the Equipment with an aggregate value in excess of Fifty Thousand
Dollars ($50,000) with a bailee, warehouseman, or other third party other than Flextronics (international or domestic locations) or any foreign locations located outside the United States and disclosed in the Disclosure Letter unless the third party
has been notified of Lenders’ security interest and Collateral Agent, for the ratable benefit of the Lenders (a) has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Collateral
Agent’s benefit or (b) is in pledge possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment; provided that, Borrower shall provide Lenders an Amended and Restated Bailee Acknowledgement, or similar, in
form and content reasonably acceptable to Required Lenders, duly executed by Flextronics US, within sixty (60) days of the Closing Date (or such extension as agreed to by Required Lenders). Store or maintain any Equipment or Inventory with an
aggregate value in excess of Fifty Thousand Dollars ($50,000) at a location other than at Flextronics (international or domestic locations) or the location set forth in Section 10 of this Agreement or in the Disclosure Letter Notwithstanding
the foregoing, Borrower may maintain (i) test equipment and (ii) up to Three Million Dollars ($3,000,000) in raw materials in transit from Borrower’s supplier(s) to Phoenix or Flextronics’ manufacturing facilities (domestic or
international) without complying with (a) or (b), above. 
 7.11 Compliance. Become an “investment
company” or be controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for
the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose. Fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to
occur, fail to comply with the Federal Fair Labor Standards Act or violate any law or regulation, which violation could have a Material Adverse Effect, or a material adverse effect on the Collateral or the priority of Lenders’ Lien on the
Collateral, or permit any of its Subsidiaries to do any of the foregoing. 
  

	 	8.	EVENTS OF DEFAULT. 

 Any one or more of the following events shall constitute an Event Default by Borrower under this Agreement: 
 8.1 Payment Default. If Borrower fails to pay, when due, any of the Obligations; 
 8.2 Covenant Default. 
 (a) If Borrower fails to perform any
obligation under Article 6 or violates any of the covenants contained in Article 7 of this Agreement; or 
 (b) If
Borrower fails or neglects to perform or observe any other material term, provision, condition, covenant contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and any Lender and as to
any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within ten days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that
if the default cannot by its nature be cured within the ten day period or cannot after diligent attempts by Borrower be cured within such ten day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an
additional reasonable period (which shall not in any case exceed 30 days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions
will be made. 
 8.3 Material Adverse Effect. If there occurs any circumstance or circumstances that could reasonably be
expected to have a Material Adverse Effect, as determined by the Required Lenders; 

  
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 8.4 Attachment. If any material portion of Borrower’s assets is attached,
seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed,
discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a
lien or encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the United States Government, or any department, agency, or
instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default
where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be required to be made during such cure period); 

8.5 Insolvency. If Borrower is unable to pay its debts (including trade debts) as they become due, or if an Insolvency Proceeding
is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within forty five (45) days (provided that no Credit Extensions will be made prior to the dismissal of such Insolvency
Proceeding); 
 8.6 Other Agreements. If there is a default or other failure to perform in any agreement to which
Borrower is a party or by which it is bound resulting in a right by a third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Five Hundred Thousand Dollars ($500,000) or which could
have a Material Adverse Effect; provided, however, that the Event of Default under this Section 8.6 caused by the occurrence of a default under such other agreement shall be cured or waived for purposes of this Agreement upon Lenders receiving
written notice from the party asserting such default of such cure or waiver of the default under such other agreement, if at the time of such cure or waiver under such other agreement (x) Lenders have not declared an Event of Default under this
Agreement and/or exercised any rights with respect thereto; (y) any such cure or waiver does not result in an Event of Default under any other provision of this Agreement or any Loan Document; and (z) in connection with any such cure or
waiver under such other agreement, the terms of any agreement with such third party are not modified or amended in any manner which could in the good faith judgment of a Lender be materially less advantageous in Borrower or any Subsidiary.

 8.7 Judgments. If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of
at least Five Hundred Thousand Dollars ($500,000) (not covered by insurance) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Credit Extensions will be made prior to
the satisfaction or stay of such judgment); or 
 8.8 Misrepresentations. If any material misrepresentation or material
misstatement exists now or hereafter in any warranty or representation set forth herein or in any certificate delivered to any Lender by any Responsible Officer pursuant to this Agreement or to induce any Lender to enter into this Agreement or any
other Loan Document. 
  

	 	9.	RIGHTS AND REMEDIES. 

 9.1 Rights and Remedies. 
 (a) Upon the occurrence and during the
continuance of an Event of Default, Collateral Agent may, and at the written direction of the Required Lenders shall, without notice or demand, do any or all of the following: (i) deliver notice of the Event of Default to Borrower, (ii) by
notice to Borrower declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs, all Obligations shall be immediately due and payable without any action by Collateral Agent or the Lenders) or
(iii) by notice to Borrower suspend or terminate the obligations, if any, of the Lenders to make Credit Extensions for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the
Lenders (but if an Event of Default described in Section 8.5 occurs all obligations, if any, of the Lenders to make Credit Extensions for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral
Agent and/or the Lenders shall be immediately terminated without any action by Collateral Agent or the Lenders) 

  
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 (b) Without limiting the rights of the Collateral Agent and the Lenders set forth in
Section 9.1(a) above, upon the occurrence and during the continuance of an Event of Default, Collateral Agent shall have the right, at the written direction of the Required Lenders, without notice or demand, to do any or all of the following:

 (i) foreclose upon and/or sell or otherwise liquidate, the Collateral, and credit bid and purchase at any public
sale; 
 (ii) apply to the Obligations any (a) balances and deposits of Borrower that Collateral Agent or any
Lender holds or controls, or (b) any amount held or controlled by Collateral Agent or any Lender owing to or for the credit or the account of Borrower; (provided that each Lender shall retain its setoff rights and its right to place a
“hold” on any accounts maintained with it, exercisable without the approval of the other Lenders); and/or 

(iii) commence and prosecute an Insolvency Proceeding or consent to Borrower commencing any Insolvency Proceeding. 

(c) Without limiting the rights of the Collateral Agent and the Lenders set forth in Sections 9.1(a) and (b) above, upon the
occurrence and during the continuance of an Event of Default, Collateral Agent shall have the right, without notice or demand, to do any or all of the following: 
 (i) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Collateral Agent and the Required Lenders consider advisable, notify any Person
owing Borrower money of Collateral Agent’s and Lenders ’ security interest in such funds, and verify the amount of such account; 
 (ii) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if
Collateral Agent requests and make it available in a location as Collateral Agent reasonably designates. Collateral Agent may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay,
purchase, contest or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Collateral Agent a license to enter and occupy any of its premises, without charge, to exercise
any of Collateral Agent’s rights or remedies; 
 (iii) ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, and/or advertise for sale, the Collateral. Upon the occurrence and during the continuance of an Event of Default, Collateral Agent and Lenders are hereby granted a non-exclusive, royalty-free license or other right to use, without
charge, Borrower’s labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing
production of advertising for sale, and selling any Collateral and, in connection with Collateral Agent’s or Lenders’ exercise of their rights under this Section 9.1, Borrower’s rights under all licenses and all franchise
agreements inure to Collateral Agent for the benefit of the Lenders; 
 (iv) place a “hold” on any account
maintained with Collateral Agent or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or, similar agreements providing control of any Collateral; 

(v) demand and receive possession of Borrower’s Books; 

(vi) appoint a receiver to manage and realize upon any of the Collateral, and such receiver shall have any right and authority as
any competent court will grant or authorize in accordance with any applicable law, including any power or authority to manage the business of Borrower; and 
 (vii) Subject to clauses 9.1(a) and 9.1(b), exercise all rights and remedies available to Collateral Agent and Lenders under the Loan Documents or at law or equity, including all remedies

  
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provided under the Code (including disposal of the Collateral pursuant to the terms thereof), and including the power of attorney in Section 9.2. 

Notwithstanding any provision of this Section 9.1 to the contrary, but subject to the next succeeding paragraph, upon the occurrence of any Event of
Default, Collateral Agent and each Required Lender shall have the right to exercise any and all remedies referenced in this Section 9.1 following the occurrence of an Exigent Circumstance. As used in the immediately preceding sentence,
“Exigent Circumstance” means any event or circumstance that, in the reasonable judgment of Collateral Agent or any Required Lender, imminently threaten the ability of Collateral Agent or any Required Lender to realize upon all or any
material portion of the Collateral, such as, without limitation, fraudulent removal, concealment, or abscondment thereof, destruction or material waste thereof, or failure of Borrower after reasonable demand to maintain or reinstate adequate
casually insurance coverage, or which, in the reasonable judgment of Collateral Agent or any Required Lender, could reasonably be expected to result in a material diminution in value of the Collateral. 

In the event of an Exigent Circumstance, the Required Lenders shall attempt to mutually agree as to what enforcement action (as described in this
Section 9.1; each, an “Enforcement Action”) to take; provided, however, that if after consultation, the Required Lenders cannot mutually agree on what action to take, then the Required Lender wishing to take the stronger Enforcement
Action (the “Enforcing Lender”) shall have the right to determine and shall control the timing, order and type of Enforcement Actions which will be taken and all other matters in connection with any such Enforcement Actions, upon any
Required Lender becoming the Enforcing Lender, if the Enforcing Lender is not already the Collateral Agent, then automatically and without the necessity of any further action being taken by any party, (x) the original Collateral Agent shall be
deemed to have resigned as Collateral Agent and (y) the Lenders shall be deemed to have unanimously appointed the Enforcing Lender as successor Collateral Agent under this Agreement and the Loan Documents (and the Enforcing Lender shall be
deemed to have accepted such appointment) in accordance with 13.9 of this Agreement. In taking such Enforcement Actions pursuant to the previous sentence, the Enforcing Lender as such successor agent shall act in accordance with, and subject to the
terms, conditions, rights and duties of Article 13 of this Agreement. 
 9.2 Power of Attorney. Borrower hereby
irrevocably appoints Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks of other forms of payment or security;
(b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors, (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms
Collateral Agent determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the
Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Collateral Agent or a third party as the Code or any applicable law permits. Borrower
hereby appoints Collateral Agent as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Collateral Agent’s and Lenders’ security interest in the Collateral regardless
of whether an Event of Default has occurred until all Obligations have been satisfied in full and Collateral Agent and the Lenders are under no further obligation to make Credit Extensions hereunder. Collateral Agent’s foregoing appointment as
Borrower’s attorney in fact, and all of Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Collateral
Agent’s and the Lenders’ obligation to provide Credit Extensions terminates. 
 9.3 Protective Payments. If
Borrower fails to obtain the insurance called for by Section 6.6 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Collateral Agent and any
Lender (but without duplication with each other) may obtain such insurance or make such payment, and all amounts so paid by Collateral Agent or any Lender are Lenders’ Expenses and immediately due and payable, bearing interest at the Default
Rate, and secured by the Collateral. Collateral Agent will make reasonable efforts to provide Borrower with notice of Collateral Agent or any Lender obtaining such insurance or making such payment at the time it is obtained or paid or within a
reasonable time thereafter. No such payments by Collateral Agent or any Lender are deemed an agreement to make similar payments in the future or Collateral Agent’s or any Lenders’ waiver of any Event of Default. 

  
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 9.4 Application of Payments and Proceeds. Notwithstanding anything to the contrary
contained in this Agreement, upon the occurrence and during the continuance of an Event of Default, (a) Borrower irrevocably waives the right to direct the application of any and all payments at any time or times thereafter received by
Collateral Agent or any Lender from or on behalf of Borrower of all or any part of the Obligations, and, as between Borrower on the one hand and Collateral Agent and Lenders on the other, Collateral Agent and Lenders shall have the continuing and
exclusive right to apply and to reapply any and all payments received against the Obligations in such manner as Collateral Agent and/or Lenders may deem advisable (subject to the pro rata application of all such sums in accordance with this
Agreement and to the order of application set forth in clause (b) of this Section 9.4) notwithstanding any previous application by Collateral Agent or any Lender, and (b) the proceeds of any sale of, or other realization upon all or
any part of the Collateral shall be applied: first, to the Lenders’ Expenses; second, to accrued and unpaid interest on the Obligations (including any interest which but for the provisions of the United States Bankruptcy Code, would have
accrued on such amounts); third to the principal amount of the Obligations outstanding (subject in the case of Credit Card Exposure and FX Contracts to the applicable amount of the Credit Card Reserve or the FX Reserve, as the case may be); and
fourth, to any other indebtedness or obligations of Borrower owing to Collateral Agent or any Lender under the Loan Documents. Any balance remaining shall be delivered to Borrower or to whomever may be lawfully entitled to receive such balance or as
a court of competent jurisdiction may direct. In carrying out the foregoing, (x) amounts received shall be applied in the numerical order provided until exhausted prior to the application to the next succeeding category, and (y) each of
the Persons entitled to receive a payment in any particular category shall receive an amount equal to its Pro Rata Share of amounts available to be applied pursuant thereto for such category. Any reference in this Agreement to an allocation between
or sharing by the Lenders of any right, interest or obligation “ratably,” “proportionally” or in similar terms shall refer to Pro Rata Share unless expressly provided otherwise. Collateral Agent, or if applicable, each Lender,
shall promptly remit to the other Lenders such sums as may be necessary to ensure the ratable repayment of each Lender’s portion of the Advances and the ratable distribution of interest, fees and reimbursements paid or made by Borrower.
Notwithstanding the foregoing, a Lender receiving a scheduled payment shall not be responsible for determining whether the other Lenders also received their scheduled payment on such date; provided, however, if it is later determined that a Lender
received more than its Pro Rata Share of scheduled payments made on any date or dates, then such Lender shall remit to Collateral Agent or other Lenders such sums as may be necessary to ensure the ratable payment of such scheduled payments, as
instructed by Collateral Agent. Any payment or distribution of any kind or character, whether in cash, properties or securities, shall be received by a Lender in excess of its ratable share then the portion of such payment or distribution in excess
of such Lender’s Pro Rata Share shall be received by such Lender in trust for and shall be promptly paid over to the other Lender for application to the payments of amounts due on the other Lenders’ claims. To the extent any payment for
the account of Borrower is required to be returned as a voidable transfer or otherwise, the Lenders shall contribute to one another as is necessary to ensure that such return of payment is on a pro rata basis. If any Lender shall obtain possession
of any Collateral, it shall hold such Collateral for itself and as agent and bailee for Collateral Agent and Lenders for purposes of perfecting Collateral Agent’s and Lenders’ security interest therein. Notwithstanding anything to the
contrary contained herein, Borrower shall not be liable for the failure of any Lender to comply with its obligations hereunder. 

9.5 Liability for Collateral. So long as Collateral Agent and the Lenders comply with reasonable banking practices regarding the
safekeeping of the Collateral in the possession or under the control of Collateral Agent and the Lenders, Collateral Agent and the Lenders shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or
damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral.

 9.6 Remedies Cumulative. Collateral Agent’s or any Lenders’ failure, at any time or times, to require strict
performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Collateral Agent or any Lender thereafter to demand strict performance and compliance herewith or therewith.
Collateral Agent’s and Lenders’ rights and remedies under this Agreement and the other Loan Documents are cumulative. Collateral Agent and Lenders have all rights and remedies provided under the Code, any applicable law, by law, or in
equity. Collateral Agent’s or any Lenders’ exercise of one right or remedy is not an election, and Collateral Agent’s or any Lenders’ waiver of any Event of Default is not a continuing waiver. Collateral Agent’s or any
Lender’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

  
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 9.7 Demand; Protest. Borrower waives demand, protest, notice of protest, notice of
default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper and guarantees at any time held by
Collateral Agent or any Lender on which Borrower may in any way be liable. 
  

	 	10.	NOTICES. 

Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered
into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery
service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower or to Lenders, as the case may be, at its addresses set forth below: 

 

			
	If to Borrower:	  	Enphase Energy, Inc.
		  	201 First Street, Suite 300
		  	Petaluma, CA 94952
		  	Attn: Chief Financial Officer
		
	If to Collateral Agent
or Bridge Bank:	  	Bridge Bank, National Association
		  	55 Almaden Boulevard
		  	San Jose, California 95113
		  	Attn: Mike Field, Executive Vice President
		
	If to Comerica Bank:	  	Comerica Bank
		  	M/C 7578
		  	39200 Six Mile Rd
		  	Livonia, MI 48152
		  	Attn: National Documentation Services
		
	With a copy to:	  	Comerica Bank
		  	M/C 4120
		  	226 Airport Parkway, Suite 100
		  	San Jose, CA 95110
		  	Attn: Guy Simpson, Vice President

 The parties hereto may change the address at which they are to receive notices hereunder, by notice in
writing in the foregoing manner given to the other. 
  

	 	11.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

 This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without regard to principles of conflicts of law. Each of Borrower and Lenders hereby
submits to the exclusive jurisdiction of the state and Federal courts located in the County of Santa Clara, State of California. BORROWER AND LENDERS EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE
FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL 

  
 30 

 
COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
 If the jury waiver set forth in Section 11 is not enforceable, then any dispute, controversy or claim arising out of or relating to this Agreement, the Loan Documents or any of the transactions
contemplated therein shall be settled by judicial reference pursuant to Code of Civil Procedure Section 638 et seq. before a referee sitting without a jury, such referee to be mutually acceptable to the parties or, if no agreement is reached,
by a referee appointed by the Presiding Judge of the California Superior Court for Santa Clara County. This Section shall not restrict a party from exercising remedies under the Code or from exercising pre-judgment remedies under applicable law.

  

	 	12.	GENERAL PROVISIONS. 

 12.1 Successor and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties; provided, however, that neither this
Agreement nor any rights hereunder may be assigned by Borrower without Required Lenders’ prior written consent, which consent may be granted or withheld in Required Lenders’ sole discretion. Lenders shall have the right without the consent
of or notice to Borrower to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Lenders’ obligations, rights and benefits hereunder. 

12.2 Indemnification. Borrower shall defend, indemnify and hold harmless Lenders and its officers, employees, and agents against:
(a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement; and (b) all losses or Lender Expenses in any way suffered, incurred, or paid
by a Lender as a result of or in any way arising out of, following, or consequential to transactions between a Lender and Borrower whether under this Agreement, or otherwise (including without limitation reasonable attorneys’ fees and
expenses), except for losses caused by Lenders’ gross negligence or willful misconduct. 
 12.3 Time of Essence.
Time is of the essence for the performance of all obligations set forth in this Agreement. 
 12.4 Severability of
Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 

12.5 Amendments in Writing; Integration. (a) No amendment, modification, termination or waiver of any provision of this
Agreement or any other Loan Document, no approval or consent thereunder, or any consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by Borrower, Collateral Agent and the
Required Lenders provided that: 
 (i) (x) no such amendment, waiver or other modification that would have the effect of
increasing or reducing a Lender’s Commitment Amount or Commitment Percentage shall be effective as to such Lender without such Lender’s written consent and (y) no such amendment, waiver or other modification that would have the effect
of increasing the aggregate Commitment Amount shall be effective without all Lenders’ consent; 
 (ii) no such
amendment, waiver or modification that would affect the rights and duties of Collateral Agent shall be effective without Collateral Agent’s written consent or signature; 
 (iii) no such amendment, waiver or other modification shall, unless signed by all the Lenders directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with
respect to the Revolving Line, any Letter of Credit, Credit Card Exposure or FX Contract or forgive any principal, interest (other than default interest) or fees (other than late charges) with respect to the Revolving Line, any Letter of Credit,
Credit Card Exposure or FX Contract (B) postpone the date fixed for, or waive, any payment of principal of or interest on the Revolving Line or any Letter of Credit, Credit Card Exposure or FX Contract (other than default interest) or any fees
provided for hereunder (other than late charges or for any termination of any commitment); (C) 

  
 31 

 
change the definition of the term “Required Lenders” or the percentage of Lenders which shall be required for Lenders to take any action hereunder or change any provision hereunder
requiring the consent, approval or action of all Lenders; (D) release all or substantially all or any material portion of the Collateral, authorize Borrower to sell or otherwise dispose of all or substantially all or any material portion of the
Collateral or release any guarantor of all or any portion of the Obligations or its guaranty obligations with respect thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted under this Agreement or the
other Loan Documents (including in connection with any disposition permitted hereunder); (E) amend, waive or otherwise modify this Section 12.5 or the definitions of the terms used in this Section 12.5 insofar as the definitions
affect the substance of this Section 12.5; (F) consent to the assignment, delegation or other transfer by Borrower of any of its rights and obligations under any Loan Document or release Borrower of its payment obligations under any Loan
Document, except, in each case with respect to this clause (F), pursuant to a merger or consolidation permitted pursuant to this Agreement; (G) amend any of the provisions of Section 9.4 or amend any of the definitions Pro Rata Share,
Commitment Amount, Commitment Percentage or that provide for the Lenders to receive then Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral hereunder; or (H) subordinate the Liens granted in favor of Collateral Agent or
any Lender securing the Obligations, except with respect to Liens expressly permitted to be senior to the Collateral Agent’s Liens hereunder. It is hereby understood and agreed that all Lenders shall be deemed directly affected by an amendment,
waiver or other modification of the type described in the preceding clauses (C), (D), (E), (F), (G) and (H) of the preceding sentence; and 
 (iv) the provisions of the foregoing clauses (i), (ii) and (iii) are subject to the provisions of any interlender or agency agreement among the Lenders and Collateral Agent pursuant to
which any Lender may agree to give its consent in connection with any amendment, waiver or modification of the Loan Documents only in the event of the unanimous agreement of all Lenders. 

(b) Other than as expressly provided for in Section 12.5(a)(i)-(iii), Collateral Agent may, if requested by the Required
Lenders, from time to time designate covenants in this Agreement less restrictive by notification to a representative of Borrower. 
 (c) This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings,
representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 

12.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts,
each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. 
 12.7 Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding or any Lender has any
obligation to make Credit Extensions to Borrower. The obligations of Borrower to indemnify Lenders with respect to the expenses, damages, losses, costs and liabilities described in Section 12.2 shall survive until all applicable statute of
limitations periods with respect to actions that may be brought against Lenders have run. 
 12.8 Confidentiality. In
handling any confidential information Lenders and all employees and agents of Lenders, including but not limited to accountants, shall exercise the same degree of care that it exercises with respect to its own proprietary information of the same
types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Agreement except that disclosure of such information may be made (i) to the subsidiaries or affiliates of Lenders in connection
with their present or prospective business relations with Borrower, (ii) to prospective transferees or purchasers of any interest in the Loans, provided that they have entered into a comparable confidentiality agreement in favor of Borrower and
have delivered a copy to Borrower, (iii) as required by law, regulations, rule or order, subpoena, judicial order or similar order, (iv) as may be required in connection with the examination, audit or similar investigation of a Lender and
(v) as a Lender may determine in connection with the enforcement of any remedies hereunder. Confidential information hereunder shall not include information that either: (a) is in the public domain or in the knowledge or possession of a
Lender when disclosed to such Lender, or becomes part of the public domain after disclosure to a 

  
 32 

 
Lender through no fault of any Lender; or (b) is disclosed to a Lender by a third party, provided such Lender does not have actual knowledge that such third party is prohibited from
disclosing such information. 
 12.9 Patriot Act. To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. WHAT THIS MEANS FOR YOU: when you open an account, we will ask your name, address,
date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. 
 12.10 Effect of Amendment and Restatement. Except as otherwise set forth herein, this Agreement is intended to and does completely amend and restate, without novation, the Original Agreement. All
security interests granted under the Original Agreement are hereby confirmed and ratified and shall continue to secure all Obligations under this Agreement. 
  

	 	13.	COLLATERAL AGENT. 

13.1 Appointment and Authorization of Collateral Agent. Each Lender hereby irrevocably appoints, designates and authorizes
Collateral Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other
Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, Collateral Agent shall not have any duties or responsibilities,
except those expressly set forth herein, nor shall Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or any other Loan Document or otherwise exist against Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with
reference to Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom, and is intended to
create or reflect only an administrative relationship between independent contracting parties. 
 13.2 Delegation of
Duties. Collateral Agent may execute any of its duties under this Agreement or any other Loan Document by or through its, or its Affiliates’, agents, employees or attorneys-in-fact and shall be entitled to obtain and rely upon the advice of
counsel and other consultants or experts concerning all matters pertaining to such duties. Collateral Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence
or willful misconduct. 
 13.3 Liability of Collateral Agent. Except as otherwise provided herein, no Collateral
Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by Borrower or any officer
thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Collateral Agent under or in connection with, this Agreement or any other Loan
Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or
thereunder. No Collateral Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any
other Loan Document, or to inspect the properties, books or records of Borrower or any Affiliate thereof. 
 13.4 Reliance by
Collateral Agent. Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter, telegram, facsimile,
telex or telephone message, electronic mail message, statement or other document or conversation reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and
statements of legal counsel (including counsel to Borrower), independent accountants and other experts selected by Collateral Agent. As between Collateral Agent 

  
 33 

 
and Lenders. Collateral Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of all Lenders as
it deems appropriate and if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Collateral
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of all Lenders and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders. 
 13.5 Notice of Default. Collateral Agent shall not be deemed
to have knowledge or notice of the occurrence of any default and/or Event of Default, unless Collateral Agent shall have received written notice from a Lender or Borrower, describing such default or Event of Default. Collateral Agent will notify the
Lenders of its receipt of any such notice. Collateral Agent shall take such action permitted by this Agreement with respect to an Event of Default as may be directed in writing by the Required Lenders in accordance with Article 9(a);
provided, however, that while an Event of Default has occurred and is continuing, Collateral Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as
Collateral Agent shall deem advisable or in the best interest of the Lenders, including without limitation, satisfaction of other security interests, liens or encumbrances on the Collateral not permitted under the Loan Documents, payment of taxes on
behalf of Borrower, payments to landlords, warehouseman, bailees and other persons in possession of the Collateral and other actions to protect and safeguard the Collateral, and actions with respect to insurance claims for casualty events affecting
Borrower and/or the Collateral. 
 13.6 Credit Decision; Disclosure of Information by Collateral Agent. Each Lender
acknowledges that no Collateral Agent-Related Person has made any representation or warranty to it, and that no act by Collateral Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of Borrower
or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Collateral Agent-Related Person to any Lender as to any matter, including whether Collateral Agent-Related Persons have disclosed material information in
their possession. Each Lender represents to Collateral Agent that it has, independently and without reliance upon any Collateral Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal
of, and investigation into, the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower and its Subsidiaries, and all applicable bank or other regulatory laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon any Collateral Agent-Related Person and based
on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower. Except for notices, reports and other documents expressly required to be
furnished to the Lenders by Collateral Agent herein, Collateral Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of Borrower or any of its Affiliates which may come into the possession of any Collateral Agent-Related Person. 
 13.7 Indemnification of Collateral Agent. Whether or not the transactions contemplated hereby are consummated, each Lender shall, severally and pro rata based on its respective Pro Rata Share,
indemnify upon demand each Collateral Agent-Related Person (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), and hold harmless each Collateral Agent-Related Person from and against
any and all claims, damages, losses, liabilities, costs or expenses (which shall not include legal expenses of Collateral Agent incurred in connection with the closing of the transactions contemplated by this Agreement) incurred by it; provided,
however, that no Lender shall be liable for the payment to any Collateral Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a judgment by a court of competent jurisdiction to have resulted from such
Collateral Agent-Related Person’s own gross negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct
for purposes of this Section 13.7. Without limitation of the foregoing, each Lender shall, severally and pro rata based on its respective Pro Rata Share, reimburse Collateral Agent upon demand for its ratable share of any costs or out-of-pocket
expenses (including Lenders’ Expenses incurred after the closing of the transactions contemplated by this Agreement) 

  
 34 

 
incurred by Collateral Agent (in its capacity as Collateral Agent, and not as a Lender) in connection with the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the
extent that Collateral Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section 13.7 shall survive the payment in full of the Obligations, the termination of this Agreement and the resignation of
Collateral Agent. 
 13.8 Collateral Agent in its Individual Capacity. With respect to its Credit Extensions, Bridge
shall have the same rights and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not Collateral Agent, and the terms “Lender” and “Lenders” include Bridge in its individual
capacity. 
 13.9 Successor Collateral Agent. Collateral Agent may resign as Collateral Agent upon ten
(10) days’ notice to the Lenders and Borrower. If Collateral Agent resigns under this Agreement, all Lenders shall appoint from among the Lenders (or the affiliates thereof) a successor Collateral Agent for the Lenders, which successor
Collateral Agent shall (unless an Event of Default has occurred and is continuing) be subject to the approval of Borrower (which approval shall not be unreasonably withheld or delayed). If no successor Collateral Agent is appointed prior to the
effective date of the resignation of Collateral Agent, Collateral Agent may appoint, after consulting with the Lenders and upon notice to Borrower, a successor Collateral Agent from among the Lenders (or the affiliates thereof). Upon the acceptance
of its appointment as successor Collateral Agent hereunder, the Person acting as such successor Collateral Agent shall succeed to all the rights, powers and duties of the retiring Collateral Agent and the respective term “Collateral Agent”
means such successor Collateral Agent and the retiring Collateral Agent’s appointment, powers and duties in such capacities shall be terminated without any other further act or deed on its behalf. After any retiring Collateral Agent’s
resignation hereunder as Collateral Agent, the provisions of this Article 13 and Section 12.1 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent under this Agreement. If no successor
Collateral Agent has accepted appointment as Collateral Agent by the date ten (10) days following a retiring Collateral Agent’s notice of resignation, the retiring Collateral Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of Collateral Agent hereunder until such time, if any, as the Lenders appoint a successor agent as provided for above. 

13.10 Collateral Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to Borrower, Collateral Agent (irrespective of whether the principal of any Loan, shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Collateral Agent shall have made any demand on Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 

(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Credit
Extensions and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and Collateral Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and Collateral Agent and their respective agents and counsel and all other amounts due the Lenders and Collateral Agent allowed in such judicial proceeding); and 

(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 (c) and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Lender to make such payments to Collateral Agent and, in the event that Collateral Agent shall consent to the making of such payments directly to the Lenders, to pay to Collateral Agent any amount due
for the reasonable compensation, expenses, disbursements and advances of Collateral Agent and its agents and counsel, and any other amounts due Collateral Agent under this Agreement. To the extent that Collateral Agent fails timely to do so, each
Lender may file a claim relating to such Lender’s claim. 

  
 35 

 13.11 Collateral and Guaranty Matters. The Lenders irrevocably authorize Collateral
Agent, at its option and in its discretion, to release any guarantor and any Lien on any Collateral granted to or held by Collateral Agent under any Loan Document (i) upon the date that all Obligations due hereunder have been fully and
indefeasibly paid in full and no Commitment Amounts or other obligations of any Lender to provide funds to Borrower under this Agreement remain outstanding, (ii) that is transferred or to be transferred as part of or in connection with any
Transfer permitted hereunder or under any other Loan Document, or (iii) as approved in accordance with Section 12.5. Upon request by Collateral Agent at any time, all Lenders will confirm in writing Collateral Agent’s authority to release
its interest in particular types or items of Property, pursuant to this Section 13.11. 
 13.12 Cooperation of
Borrower. If necessary, Borrower agrees to (i) execute any documents reasonably required to effectuate and acknowledge each assignment of the Commitment Amount or Loan to an assignee in accordance with Section 12.1, (ii) make such
Borrower’s management available to meet with Collateral Agent and prospective participants and assignees of Commitment Amounts or Credit Extensions (which meetings shall be conducted no more often than twice every twelve months unless an Event
of Default has occurred and is continuing), and (iii) assist Collateral Agent or the Lenders in the preparation of information relating to the financial affairs of Borrower as any prospective participant or assignee of the Commitment Amount or
Revolving Line reasonably may request. Borrower authorizes each Lender to disclose to any prospective participant or assignee of the Commitment Amount, any and all information in such Lender’s possession concerning Borrower and its financial
affairs which has been delivered to such Lender by or on behalf of Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior
to entering into this Agreement, so long as any such Person enters into a confidentiality agreement or otherwise agrees to be bound by the terms of Section 12.8. 
 [Balance of Page Intentionally Left Blank] 

  
 36 

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

			
	ENPHASE ENERGY, INC.
		
	By:	 	 /s/ Paul Nahi

		
	Title:	 	 President & Chief Executive Officer

	
	COLLATERAL AGENT AND LENDER:
	
	BRIDGE BANK, NATIONAL ASSOCIATION
		
	By:	 	/s/ Michael Lederman
		
	Title:	 	SVP
	
	LENDER:
	
	COMERICA BANK
		
	By:	 	/s/ Guy Simpson
		
	Title:	 	Vice President

 [Signature Page to Amended and Restated Loan and Security
Agreement] 

 SCHEDULE 1.1 

COMMITMENT AMOUNTS AND PERCENTAGES 
  

									
	 Lender
	  	Loan Commitment Amount	 	  	Commitment Percentage	 
	 Bridge Bank, N.A.
	  	$	15,000,000	  	  	 	60.00	% 
	 Comerica Bank
	  	$	10,000,000	  	  	 	40.00	% 
	 TOTAL
	  	$	25,000,000	  	  	 	100.00	% 

 EXHIBIT A 

 

			
	DEBTOR:	  	ENPHASE ENERGY, INC.
		
	SECURED PARTY:	  	 BRIDGE BANK, NATIONAL ASSOCIATION and
 COMERICA BANK

 COLLATERAL DESCRIPTION ATTACHMENT 

TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located, including, but not
limited to: 
 (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic
chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), general intangibles (including payment intangibles and excluding Intellectual Property (as defined below)),
goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including
securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records; 

(b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all
supporting obligations and the security therefore or for any right to payment. All terms above have the meanings given to them in the California Uniform Commercial Code, as amended or supplemented from time to time. 

Notwithstanding the foregoing, the Collateral shall not include any copyrights, patents, trademarks, servicemarks and applications
therefore, now owned or hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing (collectively, the “Intellectual Property”); provided, however, that the Collateral shall
include all accounts and general intangibles that consist of rights to payment and proceeds for the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to Payment”). Notwithstanding the foregoing, if
a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically, and effective
as of the Closing Date, include the Intellectual Property to the extent necessary to permit perfection of each Secured Party’s security interest in the Rights to Payment. 
 Notwithstanding the foregoing, the term “Collateral” shall not include (A) the capital stock of the controlled foreign corporation in excess of 65% of the voting power of all classes of
capital stock of such controlled foreign corporation entitled to vote, (B) the Equipment identified on Annex I hereto, or (C) or rights of Borrower as a licensee; in each case of (B) and (C) to the extent the granting of a
security interest therein (i) would be contrary to applicable law or (ii) is prohibited by or would constitute a default under any agreement or document governing such property (but only to the extent such prohibition is enforceable under
applicable law); provided that upon the termination or lapsing of any such prohibition, such property shall automatically be part of the Collateral; and provided further that the provision of this paragraph shall in no case exclude from the
definition of “Collateral” any Accounts, proceeds of the disposition of any property, or general intangibles consisting of rights to payment, all of which shall at all times constitute “Collateral”; and provided further that any
Equipment financed by any Secured Party will at all times constitute “Collateral”. 

 ANNEX I 
 (List of Equipment Excluded from Collateral) 
 [hard copy to be attached]

 EXHIBIT B-1 
 BRIDGE BANK, N.A. 
 REVOLVING ADVANCE REQUEST 

(To be submitted no later than 2:00 PM to be considered for same day processing) 

 

					
	To:	 	 Bridge Bank, National Association
	  	
			
	Fax:	 	  
	  	
			
	Date:	 	  
	  	
			
	From:	 	ENPHASE ENERGY, INC.	  	
			
		 	  
	  	
		 	Authorized Signature	  	
			
		 	  
	  	
		 	Authorized Signer’s Name (please print)	  	
			
		 	  
	  	
		 	Phone Number	  	

  

					
	To Account #	 	  
	 	

 Borrower hereby request an Advance from Bridge Bank in the amount of
$            ; such amount represents 60% of the total Advance requested in the amount of $             (the
“Total Advance Amount”). Borrower is simultaneously requesting an Advance form Comerica Bank in the amount of $            , representing 40% of the Total Advance Amount.

 Borrower hereby authorizes Lender to rely on facsimile stamp signatures and treat them as authorized by Borrower for the purpose of
requesting the above advance. 
 All representations and warranties of Borrower stated in the Amended and Restated Loan and Security Agreement
are true, correct and complete in all material respects as of the date of this Advance Request; provided that those representations and warranties expressly referring to another date shall be true, correct and complete in all material
respects as of such date. 
 Capitalized terms used herein and not otherwise defined have the meanings set forth in the Amended and Restated
Loan and Security Agreement. 

 EXHIBIT B-2 
 COMERICA BANK – TECHNOLOGY & LIFE SCIENCE DIVISION 
 LOAN
ANALYSIS 
 LOAN ADVANCE/PAYDOWN REQUEST FORM 
 DEADLINE FOR SAME DAY PROCESSING IS 2:00* P.M., P.S.T. 
 DEADLINE FOR WIRE TRANSFERS
IS 1:30 P.M., P.S.T. 
 *At month end and the day before a holiday, the cut off time is 1:30 P.M., P.S.T. 

**Subject to 3 day advance notice. 
  

			
	To: Loan Analysis	 	DATE:
                                        
TIME:                                     
	FAX #: (650) 462-6061	 	

  

													
	FROM:	 	 ENPHASE ENERGY, INC.
	 		 	TELEPHONE REQUEST (For Bank Use Only):
		 	Borrower’s Name	 		 		 		 	
	FROM:	 	  
	 		 	The following person is authorized to request the loan payment transfer/loan advance on the designated account and is known to me.
		 	Authorized Signer’s Name	 		 
						
	FROM:	 	  
	 		 		 	  
	 	
		 	Authorized Signature (Borrower)	 		 		 	Authorized Request & Phone #	 	
						
	PHONE #:	 	  
	 		 		 	  
	 	
		 		 		 		 		 	Received by (Bank) & Phone #	 	
	FROM ACCOUNT #:	 	  
	 		 		 		 	
	(please include Note number, if applicable)	 		 		 	  
	 	
	TO ACCOUNT #:	 	  
	 		 		 	Authorized Signature (Bank)	 	
		 	  
	 		 		 		 		 	
	(please include Note number, if applicable)	 		 		 		 	

  

									
	 REQUESTED TRANSACTION TYPE
	 	 REQUEST DOLLAR AMOUNT
	 	 	 	FOR BANK USE ONLY
					
	PRINCIPAL INCREASE* (ADVANCE)	 	$                             
                                         
             	 		 	Date Rec’d:	 	
	PRINCIPAL PAYMENT (ONLY)	 	$                             
                                         
             	 		 	Time:	 	
		 		 		 	Comp. Status:	 	YES        NO    
	OTHER INSTRUCTION	 		 		 	Status Date:	 	
	  
	 	Time:	 	
	  
	 	Approval:	 	
	  
	 		 	

 All representations and warranties of Borrower stated in the Loan Agreement are true, correct and complete in all
material respects as of the date of the telephone request for and advance confirmed by this Borrowing Certificate; provided, however, that those representations and warranties the date expressly referring to another date shall be true, correct and
complete in all material respects as of such date. Any advance amount requested herein represents 60% of the total Advance requested in the amount of $             (the “Total
Advance Amount”). Borrower is simultaneously requesting an Advance from Bridge Bank, NA, in the amount of $            , representing 60% of the Total Advance Amount.

  

	*IS	THERE A WIRE REQUEST TIED TO THIS LOAN ADVANCE? (PLEASE CIRCLE ONE)
            YES            NO 

 If YES, the Outgoing Wire Transfer Instructions must be completed below. 
  

							
	OUTGOING WIRE TRANSFER INSTRUCTIONS	 	Fed Reference Number	 	Bank Transfer Number
		 		 		 	
	
	The Items marked with asterisk (*) are required to be completed.
				
	*Beneficiary Name	 		 		 	
	*Beneficiary Account Number	 		 		 	
	*Beneficiary Address	 		 		 	
	Currency Type	 	US DOLLARS ONLY
	*ABA Routing Number (9 Digits)	 		 		 	
	*Receiving Institution Name	 		 		 	
	*Receiving Institution Address	 		 		 	
	*Wire Amount	 	$	 		 	

 EXHIBIT C 
 BORROWING BASE CERTIFICATE 
 BRIDGE BANK AND COMERICA BANK 

 

					
	ENPHASE ENERGY, INC.:	 	
		
	ACCOUNTS RECEIVABLE BORROWING BASE CALCULATION:	 	As of
Date:                        

  

																			
	 1.
	 	 Add: Accounts Receivable Aged Current to 30 Days
	  				 				  	$	0	  	  			
	 2.
	 	 Add: Accounts Receivable Aged 31 to 60 days
	  				 				  	$	0	  	  			
	 3.
	 	 Add: Accounts Receivable Aged 61 to 90 days
	  				 				  	$	0	  	  			
	 4.
	 	 Add: Accounts Receivable Aged 91 Days and Over
	  				 				  	$	0	  	  			
						
	 5.
	 	 GROSS ACCOUNTS RECEIVABLE
	  				 				  				  	$	0	  
						
	 6.
	 	 Less: Account Receivable Aged over
	  	 	90	  	 	 	days	  	  	$	0	  	  			
		 		  	  
	  
	 	 				  				  			
	 7.
	 	 Less: U.S. Government Receivables (Net of > 90s)
	  				 				  	$	0	  	  			
	 8.
	 	 Less: Foreign Receivables (Net of > 90s)
	  				 				  	$	0	  	  			
	 9.
	 	 Less: Affiliate or Related Accounts Receivables (Net of > 90s)
	  				 				  	$	0	  	  			
	 10.
	 	 Less: Account concentration in excess of
	  	 	30	% 	 	$	0	  	  	$	0	  	  			
		 		  	  
	  
	 	 				  				  			
	 11.
	 	 Less: Cross Aging
	  	 	35	% 	 				  	$	0	  	  			
		 		  	  
	  
	 	 				  				  			
	 12.
	 	 Less: Contra Accounts, Prebills, Progress Billings, Retention bill and holds returns
	  				 				  	$	0	  	  			
	 13.
	 	 Less: Over 90 day A/R credits
	  				 				  	$	0	  	  			
						
	 14.
	 	 Add: Lines 6 through 13 - Total Ineligible Accounts
	  				 				  	$	0	  	  			
						
	 15.
	 	 NET ELIGIBLE ACCOUNTS RECEIVABLE
	  				 				  				  	$	0	  
	 16.
	 	 Account Receivable Advance Rate
	  				 				  				  	 	80	% 
	 17.
	 	 ACCOUNT RECEIVABLE BORROWING BASE
	  				 				  				  	$	0	  
						
	 18.
	 	 INVENTORY
	  				 				  				  			
	 19.
	 	 Eligible Inventory Value as of
                    
	  				 				  				  			
	 20.
	 	 ELIGIBLE AMOUNT OF INVENTORY (lesser of (1) 50% of #19 or (2) 50% of #17; not to exceed $10,000,000)
	  				 				  				  			
		 		  				 				  				  			
		 		  				 	  
	  
	 	  				  			
		 	 MAXIMUM AVAILABLE LINE OF CREDIT
	  				 	$	0	  	  				  			
		 		  				 	  
	  
	 	  				  			
						
	 21.
	 	 Less: Outstanding Loan Balance
	  				 				  				  	$	0	  
						
	 22.
	 	 AVAILABLE FOR DRAWN/NEED TO PAY
	  				 				  				  	$	0	  

 If line #22 is a negative number, this amount must be remitted to the Bank immediately to bring loan balance into
compliance. By signing this form you authorize the bank to deduct any advance amounts directly from the company’s checking account at Bridge Bank in the event there is an Over advance. 

The undersigned represents and warrants that the foregoing is true, complete and correct, and that the information reflected in this Borrowing Base
Certificate complies with the representations and warranties set forth in the Amended and Restated Loan and Security Agreement between the undersigned and Bridge Bank, National Association and Comerica Bank. 

 

									
		 	  
	 		 	Date:	 	  

		 	Prepared By:	 		 		 	
					
		 	  
	 		 	Date:	 	  

		 	Bank Reviewed:	 		 		 	

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

			
	TO:	 	BRIDGE BANK, NATIONAL ASSOCIATION and COMERICA BANK
		
	FROM:	 	ENPHASE ENERGY, INC.

 The undersigned authorized officer of ENPHASE ENERGY, INC. hereby certifies that in accordance with the
terms and conditions of the Amended and Restated Loan and Security Agreement between Borrower, Bridge Bank, N.A. and Comerica Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below and (ii) all representations and warranties of Borrower stated in
the Agreement are true and correct in all material respects as of the date hereof; provided, however that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects of such
date. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one
period to the next except as explained in an accompanying letters or footnotes. 
 Please indicate compliance status by
circling Yes/No under “Complies” column. 
  

							
	 Reporting Covenant
	  	 Required
	  	 Complies

				
	 Annual financial statements (CPA Audited)
	  	 FYI within 180 days
	  	Yes	  	No
	 Monthly financial statements (consolidated), Compliance Certificate and deferred revenue report
	  	 Monthly within 30 days
	  	Yes	  	No
	 Quarterly financial statements (consolidating)
	  	 Quarterly within 30 days
	  	Yes	  	No
	 10K and 10Q
	  	 (as applicable)
	  	Yes	  	No
	 Annual operating budget, sales projections and operating plans approved by board of directors
	  	 Annual no later than 30 days after the end of each fiscal year
	  	Yes	  	No
	 A/R & A/P Agings, Inventory Report, Borrowings Base Certificate
	  	 Prior to each Credit Extension, and monthly within 20 days
	  	Yes	  	No
	 A/R Audit
	  	 Initial (within 30 days of close) and Semi-Annual thereafter
	  	Yes	  	No
	 Inventory Exam
	  	 Prior to any Advance on “Eligible Inventory” and Annually thereafter
	  	Yes	  	No
	 IP Report
	  	 Annually within 30 days, and promptly after filings with the USPTO and/or Copyright Office
	  	Yes	  	No
	 Deposit balances with Bridge Bank
	  	
$                        
                
	  		  	
	 Deposit balances with Comerica Bank
	  	
$                        
                
	  		  	
	 Deposit balances outside Bridge Bank or Comerica Bank (explain on attachment)
	  	
$                        
                
	  		  	
	 Amount/% of Total Cash maintained with foreign subsidiaries
	  	
$                    /%  
                   (may not exceed 5%)
	  	Yes	  	No

  

													
	 Financial Covenants
	  	 Required
	 	 	 Actual
	 	  	 Complies

					
	 Minimum Asset Coverage Ratio (monthly)
	  	 	1.50: 1.00	  	 	 	            :1.00	  	  	Yes	  	No
	 Minimum Tangible Net Worth (quarterly)
	  	$	8,000,000	* 	 	$	                    	  	  	Yes	  	No
	 Minimum Unrestricted Cash in DDA at each of Bridge and Comerica
	  	$	1,000,000	** 	 	$	                    	  	  	Yes	  	No

							
	Comments Regarding Exceptions: See Attached.	 		 	 BANK USE ONLY
				
		 		 	 Received by:	 	  

	Sincerely,	 		 		 	 AUTHORIZED SIGNER

							
				
		 		 	 Date:	 	  

							
				
	  
	 		 	 Verified:	 	  

	SIGNATURE	 		 		 	 AUTHORIZED SIGNER

							
				
		 		 	 Date:	 	  

							
	  
 TITLE
	 		 		 	
				
		 		 	 Compliance Status	 	Yes            No               
     
	  
 DATE
	 		 		 	

  

	*	increasingly by (i) 25% of New Equity, (ii) 25% of Investors’ indebtedness actually advanced (after the initial advance thereof, and (iii) 70% of
quarterly net profit after tax (determined in accordance with GAAP), not to exceed $10,000,000 through 12/31/11. 

	**	to increase to $3,000,000 ($4,000,000 in the event of any advance of the Investors’ Indebtedness) at Bridge and $2,000,000 ($3,000,000 in the event of any advance
of the Investors’ Indebtedness) at Comerica in the event Borrower’s quarterly revenue is <80% of the Board-approved forecast delivered to Lenders in accordance with Section 6.3. 

 

 
 INSURANCE AUTHORIZATION LETTER 

In accordance with the insurance coverage requirements of the AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated as of March
    , 2011 (the “Agreement”) between Bridge Bank, National Association (“Lender and Collateral Agent”), and ENPHASE ENERGY, INC. (“Borrower”), coverage is to be provided as set forth below:

  

			
	COVERAGE:	 	All risk including liability and property damage.
	INSURED:	 	 ENPHASE ENERGY, INC.

 LOCATION(s) OF COLLATERAL: 
  

	 	1.	 201 1st St. Petaluma, CA 9495 

  

	 	2.	Flextronics, Milpitas, CA 

  

	 	3.	Flextronics Global Services 213 Harry Walker Parkway South New Marker Ontario, Canada 

 

					
	Insuring Agent:	 	 Marsh Risk and Insurance Services

		 	Address:	 	1732 N. First St. Ste 400
		 		 	San Jose, CA 95112
		 	Phone Number:	 	
		 	Fax Number:	 	

 ADDITIONAL INSURED AND LOSS PAYEE 
 Lender, as its interest may appear below 
 BRIDGE BANK, NATIONAL ASSOCIATION

 Collateral Agent 
 55 Almaden Blvd. 
 San Jose, CA 95113 

Attn: Note Dept. 

The above coverage is to be provided prior to funding the Agreement. Borrower hereby agrees to pay for the coverage above and by signing
below acknowledges obligation to do so. 
  

							
	Signature:	 	 

	 		 	
		 	Sanjeev Kumar	 		 	
				
	Title:	 	  
	 		 	
		 	Chief Financial Officer	 		 	
				
	Date:	 	March 3, 2011	 		 	

 

 
 Agreement to Furnish Insurance to Loan and Security Agreement 

 
 (Herein called “Bank”) 

Borrower(s): ENPHASE ENERGY, INC. 
 I
understand that the Security Agreement or Deed of Trust which I executed in connection with this transaction requires me to provide a physical damage insurance policy including a Lenders Loss Payable Endorsement in favor of the Bank as shown below,
within ten (10) days from the date of this agreement. 
 The following minimum insurance must be provided according to the terms of the
security documents. 
  

											
	 ̈	  	AUTOMOBILES, TRUCKS, RECREATIONAL VEHICLES PERSONAL PROPERTY	  	x	  	 MACHINERY & EQUIPMENT: MISCELLANEOUS

Fire & Extended Coverage
 Lender’s Loss Payable Endorsement

 ̈    Breach of Warranty Endorsement

		  	 Comprehensive & Collision
	  		  
		  	 Lender’s Loss Payable Endorsement
	  		  
		  		  		  
				
	 ̈	  	  
 BOATS

All Risk Hull Insurance
 Lender’s Loss Payable Endorsement

 ̈    Breach of Warranty Endorsement
	  	 ̈	  	  
 AIRCRAFT

All Risk Ground & Flight Insurance
 Lender’s Loss Payable Endorsement

 ̈    Breach of Warranty Endorsement

		  	  		  
		  	  		  
		  	  		  
				
	 ̈	  	  
 MOBILE HOMES

Fire, Theft & Combined Additional Coverage
 Lender’s Loss Payable Endorsement

 ̈    Earthquake
	  	 ̈	  	  
 REAL PROPERTY

Fire & Extended Coverage
 Lender’s Loss Payable Endorsement

 ̈    All Risk Coverage

 ̈    Special Form Risk Coverage

 ̈
  ̈    Earthquake

		  		  		  
	x	  	  
 INVENTORY
	  		  	  ̈
	 	   Other	 	  

													
			
	 ̈	  	  
 Other
	  	  

		  		  	  

		  		  	  

 I may obtain the required insurance from any company that is reasonably acceptable to the Bank, and will deliver proof of
such coverage with an effective date of March 24, 2011 or earlier. 
 I understand and agree that if I fail to deliver proof of insurance
to the Bank at the address below, or upon the lapse or cancellation of such insurance, the Bank may procure lender’s Single Interest Insurance or other similar coverage on the property. If the Bank procures insurance to protect its interest in
the property described in the security documents, the cost for the insurance will be added to my indebtedness as provided in the security documents. Lender’s Single Interest Insurance shall cover only the Bank’s interest as a secured
party, and shall become effective at the earlier of the funding date of this transaction or the date my insurance was cancelled or expired. I UNDERSTAND THAT LENDER’S SINGLE INTEREST INSURANCE WILL PROVIDE ME WITH ONLY LIMITED PROTECTION
AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO THE BALANCE OF THE LOAN, HOWEVER, MY EQUITY IN THE PROPERTY WILL NOT BE INSURED. FURTHER, THE INSURANCE WILL NOT PROVIDE MINIMUM PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND DOES NOT MEET
THE REQUIREMENTS OF THE FINANCIAL RESPONSIBILITY LAW. 
 CALIFORNIA CIVIL CODE SECTION 2955.5 HAZARD INSURANCE DISCLOSURE: No lender shall
require a borrower, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the improvements on that real property in an amount exceeding the replacement value of the
improvements on the property. 
  

							
		 	Bank Address for Insurance Documents:	 		 	
				
		 	
                Comerica Bank –
Collateral Operations, Mail Code 6514
	 		 	
		 	                 1508
W. Mockingbird Lane
	 		 	
		 	
                Dallas, Texas
75235
	 		 	

 I acknowledge having read the provisions of this agreement, and agree to its terms. I authorize the Bank to
provide to any person (including any insurance agent or company) any information necessary to obtain the insurance coverage required. 
  

					
	OWNER(S) OF COLLATERAL:	  		 	DATED: March 24, 2011
			
	 

	  		 	  

			
	 Paul Nahi – President & CEO
	  		 	  

  

							
	 INSURANCE VERIFICATION
	  		  	

									
					
	Date	 	  
	 		 	        Phone	 	  

									
	Agents Name	 	  
	  		 	  Person Talked To	 	  

			
	Agents Address	 	  

			
	Insurance Company	 	  

			
	Policy Number(s)	 	  

							
	Effective Dates: From	 	  
	  	To:	  	  

							
	Deductible $	 	  
	 	   Comments:	 	  

 CORPORATE RESOLUTIONS TO BORROW 

 
  
 Borrower:        ENPHASE ENERGY, INC. 
  

 
 I, the undersigned Secretary or
Assistant Secretary of ENPHASE ENERGY, INC. (the “Corporation”), HEREBY CERTIFY that the Corporation is organized and existing under and by virtue of the laws of the State of Delaware. 

I FURTHER CERTIFY that attached hereto as Attachments 1 and 2 are true and complete copies of the Certificate of Incorporation, as
amended, and the Restated Bylaws of the Corporation, each of which is in full force and effect on the date hereof. 
 I FURTHER
CERTIFY that pursuant to the Unanimous Written Consent of the Directors of the Corporation, the following resolutions (the “Resolutions”) were adopted. 
 BE IT RESOLVED, THAT ANY ONE (1) of the following named officers, employees, or agents of this Corporation, whose actual signatures are shown below: 

 

					
	 NAMES
	  	 POSITION
	  	 ACTUAL SIGNATURES

			
	Paul Nahi	  	Chief Executive Officer	  	 

			
	Sanjeev Kumar	  	Chief Financial Officer	  	 

			
	Bert Garcia	  	Controller	  	 

			
	  
	  	  
	  	  

 acting for and on behalf of this Corporation and as its act and deed be, and they hereby are, authorized and empowered:

 Borrow Money. To borrow from time to time from Bridge Bank, National Association and Comerica Bank (collectively, the
“Lenders”), on such terms as may be agreed upon between the officers, employees, or agents of the Corporation and the Lenders, such sum or sums of money as in their reasonable judgment should be borrowed, without limitation. 

Executive Loan Documents. To execute and deliver to the Lenders that certain Amended and Restated Loan and Security Agreement
dated as of March     , 2011 (the “Loan Agreement”) and any other agreement entered into between Corporation and the Lenders in connection with the Loan Agreement, including any amendments, all as amended or
extended from time to time (collectively, with the Loan Agreement, the “Loan Documents”), and also to execute and deliver to the Lenders one or more renewals, extensions, modifications, refinancings, consolidations, or substitutions for
the Loan Documents, or any portion thereof. 
 Grant Security. To grant a security interest to Lenders in the Collateral
described in the Loan Documents, which security interest shall secure all of the Corporation’s Obligations, as described in the Loan Documents. 
 Negotiate Items. To draw, endorse, and discount with Lenders all drafts, trade acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the Corporation or in
which the Corporation may have an interest, and either to receive cash for the same or to cause such proceeds to be credited to the account of the Corporation with Lenders, or to cause such other disposition of the proceeds derived therefrom as they
may deem advisable. 
 Letters of Credit. To execute letter of credit applications and other related documents pertaining
to Lenders’ issuance of letters of credit. 

 Corporate Credit Cards. To execute corporate credit card applications and agreements
and other related documents pertaining to Lender’s provision of corporate credit cards. 
 Further Acts. In the case
of lines of credit, to designate additional or alternated individuals as being authorized to request advances thereunder, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver
such other documents and agreements as they may in their discretion deem reasonably necessary or proper in order to carry into effect the provisions of these Resolutions. 
 BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, that these Resolutions
shall remain in full force and effect and Lenders may rely on these Resolutions until written notice of their revocation shall have been delivered to and received by Lenders. Any such notice shall not affect any of the Corporation’s agreements
or commitments in effect at the time notice is given. 
 I FURTHER CERTIFY that the officers, employees, and agents named above
are duly elected, appointed, or employed by or for the Corporation, as the case may be, and occupy the positions set forth opposite their respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that
the Resolutions are in full force and effect and have not been modified or revoked in any manner whatsoever. 
 IN WITNESS
WHEREOF, I have hereunto set my hand on March 24, 2011 and attest that the signatures set opposite the names listed above are their genuine signatures. 

 

			
	CERTIFIED AND ATTESTED BY:
		
	X	 	 

 FIRST LOAN AND SECURITY MODIFICATION AGREEMENT 

This FIRST LOAN AND SECURITY MODIFICATION AGREEMENT (the “Loan and Security Modification Agreement”) is entered into as
of November 14, 2011 by and between BRIDGE BANK, NATIONAL ASSOCIATION (“Bridge” and, solely in its capacity as collateral agent for the Lenders (as defined below), “Collateral Agent”), COMERICA BANK
(“Comerica” and, collectively, with Bridge, the “Lenders” and each, individually, a “Lender”) and ENPHASE ENERGY, INC. (“Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Lenders, Borrower is indebted to Lenders pursuant to, among other documents, an Amended and
Restated Loan and Security Agreement dated as of March 24, 2011 by and between Borrower and Lenders (as amended from time to time, the “Loan and Security Agreement”). Capitalized terms used without definition herein shall have the
meanings assigned to them in the Loan and Security Agreement. 
 Hereinafter, all indebtedness owing by Borrower to Lenders shall be referred to
as the “Indebtedness” and the Loan and Security Agreement and any and all other documents executed by Borrower in favor of Lenders shall be referred to as the “Existing Documents.” 

2. DESCRIPTION OF CHANGE IN TERMS. 
 a. Modification(s) to Loan and Security Agreement: 
 1. The
following defined term in Section 1.1 of the Agreement hereby is amended and restated as follows: 

“Investors’ Indebtedness” means subordinated convertible Indebtedness of Borrower in favor of Investors in
the aggregate principal amount not to exceed Eighty Million Dollars ($80,000,000); provided the same is subject to the Investors Subordination Agreement. 
 “Investors Subordination Agreement” means that certain Subordination Agreement between Investors and Collateral Agent dated as of June 14, 2011, as amended. 

2. Lenders hereby consent to Borrower’s incurrence of subordinated convertible Indebtedness pursuant to the
Subordinated Loan Agreement (as defined in the Investors Subordination Agreement) in an aggregate principal amount not to exceed Eighty Million Dollars ($80,000,000). 
 3. CONSISTENT CHANGES. The Existing Documents are each hereby amended wherever necessary to reflect the changes described above. 
 4. NO DEFENSES OF BORROWER/GENERAL RELEASE. Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under the Indebtedness. Borrower acknowledges that
Lenders would not enter into this Loan and Security Modification Agreement without Borrower’s assurance that it has no claims against Lenders or any of Lenders’ officers, directors, employees or agents. Except for the obligations arising
hereafter under this Loan and Security Modification Agreement, Borrower releases Lenders, and each of Lenders’ officers, directors and employees from any known or unknown claims that Borrower now has against Lenders of any nature, including any
claims that Borrower, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability,
including but not limited to any claims arising out of or related to the Agreement or the transactions contemplated thereby. Borrower waives the provisions of California Civil Code section 1542, which states: 

 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 The provisions, waivers and releases set forth in this section are binding upon Borrower and its shareholders, agents, employees, assigns and successors in interest. The provisions, waivers and releases
of this section shall inure to the benefit of each Lender and its agents, employees, officers, directors, assigns and successors in interest. The provisions of this section shall survive payment in full of the Obligations, full performance of all
the terms of this Loan and Security Modification Agreement and the Agreement, and/or Lenders’ actions to exercise any remedy available under the Agreement or otherwise. 
 5. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Indebtedness, Lenders are relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Existing Documents. Except as expressly modified pursuant to this Loan and Security Modification Agreement, the terms of the Existing Documents remain unchanged and in full force and effect. Lenders’ agreement to modifications to
the existing Indebtedness pursuant to this Loan and Security Modification Agreement in no way shall obligate Lenders to make any future modifications to the Indebtedness. Nothing in this Loan and Security Modification Agreement shall constitute a
satisfaction of the Indebtedness. It is the intention of Lenders and Borrower to retain as liable parties all makers and endorsers of Existing Documents, unless the party is expressly released by Lenders in writing. No maker, endorser, or guarantor
will be released by virtue of this Loan and Security Modification Agreement. The terms of this paragraph apply not only to this Loan and Security Modification Agreement, but also to any subsequent Loan and Security modification agreements.

 6. JUDICIAL REFERENCE PROVISION. 
 a. In the event the Jury Trial waiver is not enforceable, the parties elect to proceed under this Judicial Reference Provision. 
 b. With the exception of the items specified in Section 7(c) below, any controversy, dispute or claim (each, a “Claim”) between the parties arising out of or relating to this Agreement or
any other document, instrument or agreement between the undersigned parties (collectively in this Section, the “Loan Documents”), will be resolved by a reference proceeding in California in accordance with the provisions of Sections 638 et
seq. of the California Code of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as
otherwise provided in the Loan Documents, venue for the reference proceeding will be in the state or federal court in the county or district where the real property involved in the action, if any, is located or in the state or federal court in the
county or district where venue is otherwise appropriate under applicable law (the “Court”). 
 c. The matters that
shall not be subject to a reference are the following: (i) nonjudicial foreclosure of any security interests in real or personal property, (ii) exercise of self-help remedies (including, without limitation, set-off), (iii) appointment
of a receiver and (iv) temporary, provisional or ancillary remedies (including, without limitation, writs of attachment, writs of possession, temporary restraining orders or preliminary injunctions). This reference provision does not limit the
right of any party to exercise or oppose any of the rights and remedies described in clauses (i) and (ii) or to seek or oppose from a court of competent jurisdiction any of the items described in clauses (iii) and (iv). The exercise
of, or opposition to, any of those items does not waive the right of any party to a reference pursuant to this reference provision as provided herein. 
 d. The referee shall be a retired judge or justice selected by mutual written agreement of the parties. If the parties do not agree within ten (10) days of a written request to do so by any party,
then, upon request of any party, the referee shall be selected by the Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and

 
the parties agree that irreparable harm would result if ex parte relief is not granted. Pursuant to CCP § 170.6, each party shall have one peremptory challenge to the referee selected by the
Presiding Judge of the Court (or his or her representative). 
 e. The parties agree that time is of the essence in conducting
the reference proceedings. Accordingly, the referee shall be requested, subject to change in the time periods specified herein for good cause shown, to (i) set the matter for a status and trial-setting conference within fifteen (15) days
after the date of selection of the referee, (ii) if practicable, try all issues of law or fact within one hundred twenty (120) days after the date of the conference and (iii) report a statement of decision within twenty (20) days
after the matter has been submitted for decision. 
 f. The referee will have power to expand or limit the amount and duration
of discovery. The referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered based upon good cause shown, no party
shall be entitled to “priority” in conducting discovery, depositions may be taken by either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after service. All
disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee whose decision shall be final and binding. 
 g. Except as expressly set forth herein, the referee shall determine the manner in which the reference proceeding is conducted including the time and place of hearings, the order of presentation of
evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party
so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court
reporter. Subject to the referee’s power to award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial. 
 h. The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in
the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, enter equitable orders that will be binding on the parties and rule on any motion which would be
authorized in a court proceeding, including without limitation motions for summary judgment or summary adjudication. The referee shall issue a decision at the close of the reference proceeding which disposes of all claims of the parties that are the
subject of the reference. Pursuant to CCP § 644, such decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court and any such decision will be final, binding and conclusive.
The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order entered by the referee. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and
the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference proceeding under this provision. 
 i. If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute between the parties that would otherwise be determined by
reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge or justice, in accordance with the California Arbitration Act §1280 through §1294.2 of the CCP as amended from time to
time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. 
 j. THE
PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR
HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY 

 
CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. 
 7. CONDITIONS. The effectiveness of this Loan and Security Modification Agreement is conditioned upon (i) the due execution and delivery to Collateral Agent of this Loan and Security
Modification Agreement, (ii) the due execution and delivery to Collateral Agent of updated Borrowing Resolutions, (iii) the delivery to Collateral Agent of an Amendment to and Affirmation of Subordination Agreement, duly executed by KPCB
HOLDINGS, INC. in favor of Lenders and (iv) Borrower’s payment of all Lenders’ expenses incurred through the date of this Loan and Security Modification Agreement. 
 8. COUNTERSIGNATURE. This Loan and Security Modification Agreement shall become effective only when executed by each Lender and Borrower. 

 

									
	BORROWER:	 		 	COLLATERAL AGENT AND LENDER:
			
	ENPHASE ENERGY, INC.	 		 	BRIDGE BANK, NATIONAL ASSOCIATION
					
	By:	 	/s/ Sanjeev Kumar	 		 	By:	 	/s/ Michael Lederman
	Name:	 	 	 		 	Name:	 	Michael Lederman
	Title:	 	 	 		 	Title:	 	SVP
			
		 		 	LENDER:
			
		 		 	COMERICA BANK
					
		 		 		 	By:	 	/s/ Robert Schutt
		 		 		 	Name:	 	Robert Schutt
		 		 		 	Title:	 	SVP

 [Signature Page to First Loan and Security Modification Agreement] 

 CORPORATE RESOLUTIONS TO BORROW 

 
  
 Borrower:         ENPHASE ENERGY, INC. 
  

I, the undersigned Secretary or Assistant Secretary of ENPHASE ENERGY, INC. (the “Corporation”), HEREBY CERTIFY that the
Corporation is organized and existing under and by virtue of the laws of the State of Delaware. 
 I FURTHER CERTIFY that
attached hereto as Attachments 1 and 2 are true and complete copies of the Certificate of Incorporation, as amended, and the Restated Bylaws of the Corporation, each of which is in full force and effect on the date hereof. 

I FURTHER CERTIFY that pursuant to the Unanimous Written Consent of the Directors of the Corporation, the following resolutions (the
“Resolutions”) were adopted. 
 BE IT RESOLVED, that any one (1) of the following named officers, employees, or
agents of this Corporation, whose actual signatures are shown below: 
  

					
	 NAMES
	  	 POSITION
	 	 ACTUAL SIGNATURES

			
	Paul Nahi	  	 Chief Executive Officer
	 	 /s/ Paul Nahi

			
	Sanjeev Kumar	  	Chief Financial Officer	 	 /s/ Sanjeev Kumar

			
	Bert Garcia	  	Controller	 	 /s/ Bert Garcia

			
	____________	  	__________________________________________	 	  

 acting for and on behalf of this Corporation and as its act and deed be, and they hereby are, authorized and empowered:

 Borrow Money. To borrow from time to time from Bridge Bank, National Association and Comerica Bank (collectively, the
“Lenders”), on such terms as may be agreed upon between the officers, employees, or agents of the Corporation and the Lenders, such sum or sums of money as in their reasonable judgment should be borrowed, without limitation. 

Execute Loan Documents. To execute and deliver to the Lenders that certain Amended and Restated Loan and Security Agreement dated
as of March 24, 2011 (as amended from time to time, including by that certain First Loan and Security Modification Agreement dated as of November 14, 2011, collectively, the “Loan Agreement”) and any other agreement entered into
between Corporation and the Lenders in connection with the Loan Agreement, including any amendments, all as amended or extended from time to time (collectively, with the Loan Agreement, the “Loan Documents”), and also to execute and
deliver to the Lenders one or more renewals, extensions, modifications, refinancings, consolidations, or substitutions for the Loan Documents, or any portion thereof. 
 Grant Security. To grant a security interest to Lenders in the Collateral described in the Loan Documents, which security interest shall secure all of the Corporation’s Obligations, as
described in the Loan Documents. 
 Negotiate Items. To draw, endorse, and discount with Lenders all drafts, trade
acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the Corporation or in which the Corporation may have an interest, and either to receive cash for the same or to cause such

 
proceeds to be credited to the account of the Corporation with Lenders, or to cause such other disposition of the proceeds derived therefrom as they may deem advisable. 

Letters of Credit. To execute letter of credit applications and other related documents pertaining to Lenders’ issuance of
letters of credit. 
 Corporate Credit Cards. To execute corporate credit card applications and agreements and other
related documents pertaining to Lenders’ provision of corporate credit cards. 
 Further Acts. In the case of lines
of credit, to designate additional or alternate individuals as being authorized to request advances thereunder, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver such other
documents and agreements as they may in their discretion deem reasonably necessary or proper in order to carry into effect the provisions of these Resolutions. 
 BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, that these Resolutions
shall remain in full force and effect and Lenders may rely on these Resolutions until written notice of their revocation shall have been delivered to and received by Lenders. Any such notice shall not affect any of the Corporation’s agreements
or commitments in effect at the time notice is given. 
 I FURTHER CERTIFY that the officers, employees, and agents named above
are duly elected, appointed, or employed by or for the Corporation, as the case may be, and occupy the positions set forth opposite their respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that
the Resolutions are in full force and effect and have not been modified or revoked in any manner whatsoever. 
 IN WITNESS
WHEREOF, I have hereunto set my hand on November 16, 2011 and attest that the signatures set opposite the names listed above are their genuine signatures. 

 

			
	CERTIFIED AND ATTESTED BY:
		
	X	 	/s/ John H. Sellers

 SECOND LOAN AND SECURITY MODIFICATION AGREEMENT 

This SECOND LOAN AND SECURITY MODIFICATION AGREEMENT is entered into as of December 30, 2011 (the “Second Modification
Date”) by and between BRIDGE BANK, NATIONAL ASSOCIATION (“Bridge” and, solely in its capacity as collateral agent for the Lenders (as defined below), “Collateral Agent”), COMERICA BANK (“Comerica”
and, collectively, with Bridge, the “Lenders” and each, individually, a “Lender”) and ENPHASE ENERGY, INC. (“Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Lenders, Borrower is indebted to Lenders pursuant to, among other documents, an Amended and
Restated Loan and Security Agreement dated as of March 24, 2011 by and between Borrower and Lenders (as amended from time to time, the “Loan and Security Agreement”). Capitalized terms used without definition herein shall have the
meanings assigned to them in the Loan and Security Agreement. 
 Hereinafter, all indebtedness owing by Borrower to Lenders
shall be referred to as the “Indebtedness” and the Loan and Security Agreement and any and all other documents executed by Borrower in favor of Lenders shall be referred to as the “Existing Documents.” 

2. DESCRIPTION OF CHANGE IN TERMS. 
 a. Modification(s) to Loan and Security Agreement: 
 1. The
following defined terms in Section 1.1 of the Loan and Security Agreement hereby are amended and restated as follows: 
 “Borrowing Base” means an amount equal to (1) eighty percent (80%) of Eligible Accounts, plus (2) fifty percent (50%) of Eligible Inventory (provided that Advances against
Eligible Inventory shall not exceed the lesser of fifty percent (50%) of Eligible Accounts or Thirteen Million Two Hundred Thousand Dollars ($13,200,000)); all as determined by Lenders with reference to the most recent Borrowing Base
Certificate delivered by Borrower. 
 “IPO” means the initial public offering of Borrower’s common
stock. 
 “Revolving Line” means a credit extension of up to Thirty Three Million Dollars ($33,000,000)
(inclusive of the aggregate face amount of Letters of Credit, the aggregate limits of the Credit Card Services and any amounts outstanding under the Foreign Exchange Sublimit). 

“Revolving Maturity Date” means December 30, 2013. 

“Second Modification Date” is December 30, 2011. 

2. Clause (h) of the defined term “Permitted Investment” in Section 1.1 of the Loan and Security
Agreement hereby is amended and restated in its entirety to read as follows: 
 “(h) Investments in
Subsidiaries made in the ordinary course of business, not to exceed Six Million Dollars ($6,000,000) in the aggregate in any fiscal year;” 
 3. Section 2.1(b)(i) of the Loan and Security Agreement hereby is amended and restated in its entirety to read as follows: 

“(i) Commitment. Subject to the terms of this Agreement, at the request of Borrower, Issuing Lender will issue
from time to time standby or documentary letters of credit, in each case for the account of Borrower and containing terms and conditions which are consistent with this Agreement and reasonably satisfactory to Issuing Lender (each such letter of
credit, a “Letter of Credit”) in an aggregate 

 outstanding face amount not to exceed the lesser of the Revolving Line or the Borrowing base
minus the aggregate amount of the outstanding Advances at any time, the Credit Card Exposure, and the FX Amount, provided that the Stated Amount of all Letters of Credit shall not exceed Ten Million Dollars ($10,000,000). No Letter of Credit
shall be issued (including any renewal or extension of any Letter of Credit previously issued) unless: (a) after giving effect to each such issuance, (i) the aggregate Stated Amount of all Letters of Credit shall not at any time exceed Ten
Million Dollars ($10,000,000) and (ii) Revolving Outstandings will not at any time exceed the Revolving Line, (b) the conditions set forth in Section 3 have been satisfied, (c) the issuance of the Letter of Credit would not
violate one or more policies of the Issuing Lender, and (d) no order, judgment or decree of any Governmental Authority or arbitrator shall purport by its terms to enjoin or restrain Issuing Lender from issuing the Letter of Credit requested or
any Lender from taking an assignment of its Pro Rata Share thereof, and no law, rule, regulation, request or directive (whether or not having the force of law) shall prohibit the Issuing Lender from issuing, or any Lender from taking an assignment
of its Pro Rata Share of, the Letter of Credit requested or letters of credit generally, or will impose upon the Issuing Lender any restriction, reserve or capital requirement not in effect on the Closing Date and for which the Issuing Lender is not
already compensated for hereunder, or will impose on the Issuing Lender unreimbursed loss, cost or expense that was not applicable on the Closing Date deemed to be material to it by the Issuing Lender.” 

4. Section 2.1(d) of the Loan and Security Agreement hereby is amended and restated in its entirety to read as
follows: 
 “(b) Foreign Exchange Sublimit. Subject to and upon the terms and conditions of this
Agreement and any other agreement that Borrower may enter into with any Lender in connection with foreign exchange transactions (“FX Contracts”), Borrower may request that a Lender agree, severally and not jointly, to enter into FX
Contracts with Borrower expiring not later than the Revolving Maturity Date, and a Lender may agree (if it so elects) to do so (provided that no Lender shall have any obligation to enter into FX Contracts). Borrower shall pay any standard issuance
and other fees that each Lender notifies Borrower will be charged for issuing and processing FX Contracts for Borrower. The aggregate FX Amount shall at all times be equal to or less than Five Million Dollars ($5,000,000) for all FX Contracts
entered into with Lenders hereunder. In addition, no single Lender shall have an aggregate FX Amount in excess of Two Million Five Hundred Thousand Dollars ($2,500,000). The “FX Amount” shall equal the amount determined by multiplying
(i) the aggregate amount, in United States Dollars, of FX Contracts between Borrower and any participating Lender remaining outstanding as of any date of determination by (ii) the applicable Foreign Exchange Reserve Percentage as of such
date. The “Foreign Exchange Reserve Percentage” shall be a percentage as determined by each Lender, in its sole discretion from time to time. The initial Foreign Exchange Reserve Percentage shall be ten percent (10%). A reserve (the
“FX Reserve”) shall be established against availability under the Borrowing Base in the aggregate FX Amount in effect from time to time. Each Lender shall advise the other Lenders and the Collateral Agent in writing promptly upon entering
into an FX Contract with Borrower (with a copy to Borrower), specifying in such notice the FX Amount related to such Contract. Lenders shall be entitled to receive collection proceeds under Section 9.4 in respect of FX Contracts entered into by
it with Borrower up to the amount of the FX Reserve applicable to such FX Contracts (until the amount of such reserve has been exhausted) in the chronological order in which such contracts have been entered into. Once the amount of the FX Reserve
has been exhausted, no additional collection proceeds shall be available for application against the Borrower’s Obligations under FX Contracts until all other Obligations have been paid and discharged in full.” 

5. Section 2.5(a) of the Loan and Security Agreement hereby is amended and restated in its entirety to read as
follows: 
 “(a) Facility Fee. On the Second Modification Date and the first anniversary thereof (or
prior repayment of the Obligations whether by acceleration or otherwise if prior to the first anniversary thereof), a facility fee equal to One Hundred Sixty Five Thousand Dollars ($165,000), to be shared between the Lenders pursuant to their
respective Commitment Percentages, which shall be fully earned and nonrefundable as of the Second Modification Date; and” 
 6. New Section 2.5(d) hereby is added to the Loan and Security Agreement as follows: 

 “(d) Unused Facility Fee. At all times after consummation of the
IPO, if Borrower fails to maintain the Minimum Advance (as defined in Section 6.8(c)), a quarterly unused facility fee equal to fifteen hundredths of one percent (0.15%) per annum of the lesser of (i) the Revolving Line or (ii) the
Borrowing Base, minus the Stated Amount of all Letters of Credit, the Credit Card Reserve and the FX Reserve in effect from time to time, on average, during the applicable quarter, which fee shall be payable within five (5) days of the
last day of each such quarter and shall be nonrefundable.” 
 7. Section 6.7 of the Loan and Security
Agreement hereby is amended and restated in its entirety to read as follows: 
 “6.7 Accounts.
Borrower shall maintain (x) its primary operating accounts with Bridge, which accounts shall represent at least 40% of the dollar value of Borrower’s accounts at all financial institutions; and (y) at least 40% of the dollar value of
Borrower’s accounts at all financial institutions with Comerica; including at least Two Million Dollars ($2,000,000) in a non interest-bearing demand deposit account with each of Bridge and Comerica; provided that (i) in the event
Borrower’s quarterly revenue is less than eighty percent (80%) of Borrower’s Board-approved forecast submitted to Lenders in accordance with Section 6.3 (the “Approved Forecast”), Borrower shall, until such time as
Borrower achieves and maintains two (2) consecutive quarters of quarterly revenue equal to or greater than eighty percent (80%) of the Approved Forecast (the “Initial Revenue Cure”), maintain consolidated, unrestricted cash in a
non interest-bearing demand deposit account with Bridge in the amount of at least Four Million Dollars ($4,000,000), and with Comerica in the amount of at least Four Million Dollars ($4,000,000); provided that, in the event that, after the Initial
Revenue Cure, Borrower’s quarterly revenue is less than eighty percent (80%) of the Approved Forecast, Borrower shall at all times thereafter maintain consolidated, unrestricted cash in a non interest-bearing demand deposit account with
Bridge in the amount of at least Four Million Dollars ($4,000,000), and with Comerica in the amount of at least Four Million Dollars ($4,000,000); (ii) Borrower may continue to maintain its existing account with Bank of the West with a balance
not to exceed Five Thousand Dollars ($5,000) (with respect to which a control agreement shall not be required); (iii) Borrower may maintain up to five percent (5.00%) of consolidated cash in its existing accounts held outside the United
States to support Borrower’s Foreign Subsidiaries (“Permitted Foreign Cash”), provided that if amounts in such accounts exceed five percent (5.00%) of consolidated cash, Borrower shall, within five (5) calendar days, cause
such excess amount to be transferred to an account with Bridge or Comerica; and (iv) Borrower shall not, and shall not permit any Subsidiary, to open any accounts other than those described herein, without Required Lenders’ prior written
consent (which consent shall not be unreasonably withheld). Notwithstanding the foregoing, if (i) Borrower consummates the IPO and (ii) maintains unrestricted cash with Bridge and Comerica in an aggregate amount of at least Thirty Three
Million Dollars ($33,000,000), Borrower shall be permitted to maintain cash in accounts other than those described herein, subject to control agreements in form and content reasonably acceptable to Collateral Agent.” 

8. Section 6.8(b) of the Loan and Security Agreement hereby is amended and restated in its entirety to read as
follows: 
 “(b) Tangible Net Worth. Tangible Net Worth of at least Nine Million Eight Hundred
Seventy Five Thousand Dollars ($9,875,000), increasing by (i) twenty five percent (25%) of New Equity, (ii) twenty five percent (25%) of the principal amount of the Investors’ Indebtedness actually advanced to Borrower after
the Second Modification Date; and (iii) seventy percent (70%) of quarterly net profit after tax, if a positive number (determined in accordance with GAAP), measured quarterly.” 

9. New Section 6.8(c) hereby is added to the Loan and Security Agreement as follows: 

“(c) Minimum Advance. At all times prior to the consummation of the IPO, beginning on March 1, 2012,
Borrower shall maintain Revolving Outstandings equal to at least twenty five percent (25%) of the amount available under the lesser of (i) the Revolving Line or (ii) the Borrowing

 
Base, minus the Stated Amount of all Letters of Credit, the Credit Card Reserve and the FX Reserve in effect from time to time (the “Minimum Advance”). Notwithstanding the
foregoing, Borrower shall not be required to comply with this Section 6.8(c) to the extent compliance herewith will cause Borrower to violate the Asset Coverage Ratio requirement in Section 6.8(a), above.” 

10. Schedule 1.1 to the Loan and Security Agreement hereby is replaced with Schedule 1.1 attached hereto. 

11. Exhibit C to the Loan and Security Agreement hereby is replaced with Exhibit C attached hereto. 

12. Exhibit D to the Loan and Security Agreement hereby is replaced with Exhibit D attached hereto. 

3. CONSISTENT CHANGES. The Existing Documents are each hereby amended wherever necessary to reflect the changes described above. 

4. NO DEFENSES OF BORROWER/GENERAL RELEASE. Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts
under the Indebtedness. Borrower acknowledges that Lenders would not enter into this Loan and Security Modification Agreement without Borrower’s assurance that it has no claims against Lenders or any of Lenders’ officers, directors,
employees or agents. Except for the obligations arising hereafter under this Loan and Security Modification Agreement, Borrower releases Lenders, and each of Lenders’ officers, directors and employees from any known or unknown claims that
Borrower now has against Lenders of any nature, including any claims that Borrower, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract,
in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the Agreement or the transactions contemplated thereby. Borrower waives the provisions of California Civil Code section 1542,
which states: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

The provisions, waivers and releases set forth in this section are binding upon Borrower and its shareholders, agents, employees, assigns and successors
in interest. The provisions, waivers and releases of this section shall inure to the benefit of each Lender and its agents, employees, officers, directors, assigns and successors in interest. The provisions of this section shall survive payment in
full of the Obligations, full performance of all the terms of this Loan and Security Modification Agreement and the Agreement, and/or Lenders’ actions to exercise any remedy available under the Agreement or otherwise. 

5. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Indebtedness, Lenders are relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Documents. Except as expressly modified pursuant to this Loan and Security Modification Agreement, the terms of the Existing Documents remain unchanged and in full force and
effect. Lenders’ agreement to modifications to the existing Indebtedness pursuant to this Loan and Security Modification Agreement in no way shall obligate Lenders to make any future modifications to the Indebtedness. Nothing in this Loan and
Security Modification Agreement shall constitute a satisfaction of the Indebtedness. It is the intention of Lenders and Borrower to retain as liable parties all makers and endorsers of Existing Documents, unless the party is expressly released by
Lenders in writing. No maker, endorser, or guarantor will be released by virtue of this Loan and Security Modification Agreement. The terms of this paragraph apply not only to this Loan and Security Modification Agreement, but also to any subsequent
Loan and Security modification agreements. 

 6. JUDICIAL REFERENCE PROVISION. 

a. In the event the Jury Trial waiver is not enforceable, the parties elect to proceed under this Judicial Reference Provision.

 b. With the exception of the items specified in Section 7(c) below, any controversy, dispute or claim (each, a
“Claim”) between the parties arising out of or relating to this Agreement or any other document, instrument or agreement between the undersigned parties (collectively in this Section, the “Loan Documents”), will be resolved by a
reference proceeding in California in accordance with the provisions of Sections 638 et seq. of the California Code of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive remedy for the
resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will be in the state or federal court in the county or district where
the real property involved in the action, if any, is located or in the state or federal court in the county or district where venue is otherwise appropriate under applicable law (the “Court”). 

c. The matters that shall not be subject to a reference are the following: (i) nonjudicial foreclosure of any security interests in
real or personal property, (ii) exercise of self-help remedies (including, without limitation, set-off), (iii) appointment of a receiver and (iv) temporary, provisional or ancillary remedies (including, without limitation, writs of
attachment, writs of possession, temporary restraining orders or preliminary injunctions). This reference provision does not limit the right of any party to exercise or oppose any of the rights and remedies described in clauses (i) and
(ii) or to seek or oppose from a court of competent jurisdiction any of the items described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does not waive the right of any party to a reference pursuant to
this reference provision as provided herein. 
 d. The referee shall be a retired judge or justice selected by mutual written
agreement of the parties. If the parties do not agree within ten (10) days of a written request to do so by any party, then, upon request of any party, the referee shall be selected by the Presiding Judge of the Court (or his or her
representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. Pursuant to CCP § 170.6, each party shall have
one peremptory challenge to the referee selected by the Presiding Judge of the Court (or his or her representative). 
 e. The
parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested, subject to change in the time periods specified herein for good cause shown, to (i) set the matter for a status and
trial-setting conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable, try all issues of law or fact within one hundred twenty (120) days after the date of the conference and
(iii) report a statement of decision within twenty (20) days after the matter has been submitted for decision. 
 f.
The referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason
whatsoever. Unless otherwise ordered based upon good cause shown, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by either party upon seven (7) days written notice, and all other discovery
shall be responded to within fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee whose decision shall be final and binding. 

g. Except as expressly set forth herein, the referee shall determine the manner in which the reference proceeding is conducted including
the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be
conducted without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a
request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s 

 
power to award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial. 

h. The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of
California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, enter equitable orders that will
be binding on the parties and rule on any motion which would be authorized in a court proceeding, including without limitation motions for summary judgment or summary adjudication. The referee shall issue a decision at the close of the reference
proceeding which disposes of all claims of the parties that are the subject of the reference. Pursuant to CCP § 644, such decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the
Court and any such decision will be final, binding and conclusive. The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order entered by the referee. The parties reserve the right to findings of
fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference proceeding under this provision. 

i. If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute
between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge or justice, in accordance with the California Arbitration Act
§1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. 

j. THE PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY
A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE
PROVISION WILL APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. 
 7. CONDITIONS. The effectiveness of this Loan and Security Modification Agreement is conditioned upon (i) the due execution and delivery to Collateral Agent of this Loan and Security
Modification Agreement, (ii) the due execution and delivery to Collateral Agent of updated Borrowing Resolutions, (iii) the due execution and delivery to Collateral Agent of an Affirmation of Subordination Agreement in favor of Lenders by
KPCB HOLDINGS, INC., as nominee, as agent for the lenders under the Subordinated Loan Agreement (as defined in the Investors Subordination Agreement), (iv) the due execution and delivery to Collateral Agent of an Affirmation of Intercreditor
Agreement and (v) Borrower’s payment of all Lenders’ expenses incurred through the date of this Loan and Security Modification Agreement. 
 [Signature Page Follows] 

 8. COUNTER SIGNATURE. This Loan and Security Modification Agreement shall become effective only when
executed by each Lender and Borrower. 
  

									
	BORROWER:	 		 	COLLATERAL AGENT AND LENDER:
			
	ENPHASE ENERGY, INC.	 		 	BRIDGE BANK, NATIONAL ASSOCIATION
					
	By:	 	/s/ Paul Nahi	 		 	By:	 	 
					
	Name:	 	 	 		 	Name:	 	 
					
	Title:	 	 	 		 	Title:	 	 
				
		 		 		 	LENDER:
				
		 		 		 	COMERICA BANK
					
		 		 		 	By:	 	 
					
		 		 		 	Name:	 	 
					
		 		 		 	Title:	 	 

 [Signature Page to Second Loan and Security Modification
Agreement] 

 8. COUNTER SIGNATURE. This Loan and Security Modification Agreement shall become effective only when
executed by each Lender and Borrower. 
  

									
	BORROWER:	 		 	COLLATERAL AGENT AND LENDER:
			
	ENPHASE ENERGY, INC.	 		 	BRIDGE BANK, NATIONAL ASSOCIATION
					
	By:	 	 	 		 	By:	 	/s/ Michael Lederman
					
	Name:	 	 	 		 	Name:	 	Michael Lederman
					
	Title:	 	 	 		 	Title:	 	SVP
				
		 		 		 	LENDER:
				
		 		 		 	COMERICA BANK
					
		 		 		 	By:	 	 
					
		 		 		 	Name:	 	 
					
		 		 		 	Title:	 	 

 [Signature Page to Second Loan and Security Modification Agreement]

 8. COUNTER SIGNATURE. This Loan and Security Modification Agreement shall become effective only when
executed by each Lender and Borrower. 
  

									
	BORROWER:	 		 	COLLATERAL AGENT AND LENDER:
			
	ENPHASE ENERGY, INC.	 		 	BRIDGE BANK, NATIONAL ASSOCIATION
					
	By:	 	 	 		 	By:	 	 
					
	Name:	 	 	 		 	Name:	 	 
					
	Title:	 	 	 		 	Title:	 	 
				
		 		 		 	LENDER:
				
		 		 		 	COMERICA BANK
					
		 		 		 	By:	 	/s/ Alan Jepsen
					
		 		 		 	Name:	 	Alan Jepsen
					
		 		 		 	Title:	 	SVP

 [Signature Page to Second Loan and Security Modification Agreement]

 SCHEDULE 1.1 

COMMITMENT AMOUNTS AND PERCENTAGES 
  

									
	 Lender
	  	 Loan Commitment Amount
	 	  	 Commitment Percentage
	 
	 Bridge Bank, N.A.
	  	$	16,500,000	  	  	 	50.00	% 
	 Comerica Bank
	  	$	16,500,000	  	  	 	50.00	% 
	 TOTAL
	  	$	33,000,000	  	  	 	100.00	% 

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

	TO:	BRIDGE BANK, NATIONAL ASSOCIATION and COMERICA BANK 

 FROM: ENPHASE ENERGY, INC. 
 The undersigned authorized officer of ENPHASE ENERGY,
INC. hereby certifies that in accordance with the terms and conditions of the Amended and Restated Loan and Security Agreement between Borrower, Bridge Bank, N.A. and Comerica Bank (the “Agreement”), (i) Borrower is in complete
compliance for the period ending                           with all required covenants except as noted below and
(ii) all representations and warranties of Borrower stated in the Agreement are true and correct in all material respects as of the date hereof; provided, however that those representations and warranties expressly referring to another date shall be
true, correct and complete in all material respects of such date. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting
Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

 
  

							
	 Reporting Covenant
	  	 Required
	  	 Complies

	Annual financial statements (CPA Audited)	  	FYE within 180 days	  	Yes	    	No
	Monthly financial statements (consolidated), Compliance Certificate and deferred revenue report	  	Monthly within 30 days	  	Yes	    	No
	Quarterly financial statements (consolidating)	  	Quarterly within 30 days	  	Yes	    	No
	10K and 10Q	  	(as applicable)	  	Yes	    	No
	Annual operating budget, sales projections and operating plans approved by board of directors	  	Annually no later than 30 days after the end of each fiscal year	  	Yes	    	No
	A/R & A/P Agings, Inventory Report, Borrowing Base Certificate	  	Prior to each Credit Extension, and monthly within 20 days	  	Yes	    	No
	A/R Audit	  	Initial (within 30 days of close) and Semi-Annual thereafter	  	Yes	    	No
	Inventory Exam	  	Prior to any Advance on “Eligible Inventory” and Annually thereafter	  	Yes	    	No
	IP Report	  	Annually within 30 days, and promptly after filings with the USPTO and/or Copyright Office	  	Yes	    	No
	Deposit balances with Bridge Bank	  	$                     	  		    	
	Deposit balances with Comerica Bank	  	$                     	  		    	
	Deposit balances outside Bridge Bank or Comerica Bank (explain on attachment)	  	 $
                    
	  		    	
	Amount/% of Total Cash maintained with foreign subsidiaries	  	$             
        /%                 (may not exceed 5%)	  	Yes	    	No

  

													
	 Financial Covenants
	  	Required	 	  	Actual	 	  	 Complies

	Minimum Asset Coverage Ratio (monthly)	  	 	1.50: 1.00     	  	  	 	             :1.00	  	  	Yes	  	No
	Minimum Tangible Net Worth (quarterly)	  	 	$9,875,000*	  	  	 	$                     	  	  	Yes	  	No
	Minimum Unrestricted Cash in DDA at each of Bridge and Comerica	  	 	$2,000,000**	  	  	 	$                     	  	  	Yes	  	No

 Comments Regarding Exceptions: See Attached. 

									
		 		 	BANK USE ONLY
				
	Sincerely,	 		 	Received by:	 	 
		 		 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	 
				
	 	 		 	Verified:	 	 
	SIGNATURE	 		 		 	AUTHORIZED SIGNER
				
	 	 		 	Date:	 	 
	TITLE	 		 		 	
			
	 	 		 	Compliance
Status                                Yes
             No
	DATE	 		 		 	

  

	*	increasing by (i) 25% of New Equity, (ii) 25% of the principal amount of the Investors’ Indebtedness actually advanced to Borrower after the Second
Modification Date, and (iii) 70% of quarterly net profit after tax (determined in accordance with GAAP). 

	**	to increase to $4,000,000 at Bridge and $4,000,000 at Comerica in the event Borrower’s quarterly revenue is < 80% of the Board-approved forecast delivered to
Lenders in accordance with Section 6.3. 

 EXHIBIT C 
 BORROWING BASE CERTIFICATE 
 BRIDGE BANK and COMERICA BANK 

ENPHASE ENERGY, INC.: 
  

																			
	 ACCOUNTS RECEIVABLE BORROWING BASE CALCULATION:
	  				 				  	 	As of Date:	  	  	 	_______	  
	 1.
	  	Add: Accounts Receivable Aged Current to 30 Days	  				 				  	$	0	  	  			
	 2.
	  	Add: Accounts Receivable Aged 31 to 60 Days	  				 				  	$	0	  	  			
	 3.
	  	Add: Accounts Receivable Aged 61 to 90 Days	  				 				  	$	0	  	  			
	 4.
	  	Add: Accounts Receivable Aged 91 Days and Over	  				 				  	$	0	  	  			
	 5.
	  	GROSS ACCOUNTS RECEIVABLE	  				 				  				  	$	0	  
	 6.
	  	Less: Accounts Receivable Aged over	  	 	90	   days 	 				  	$	0	  	  			
		  		  	  
	  
	 	 				  				  			
	 7.
	  	Less: U.S. Government Receivables (Net of > 90s)	  				 				  	$	0	  	  			
	 8.
	  	Less: Foreign Receivables (Net of > 90s)	  				 				  	$	0	  	  			
	 9.
	  	Less: Affiliate or Related Accounts Receivables (Net of > 90s)	  				 				  	$	0	  	  			
	 10.
	  	Less: Account concentration in excess of	  	 	30	% 	 	$	0	  	  	$	0	  	  			
		  		  	  
	  
	 	 				  				  			
	 11.
	  	Less: Cross Aging	  	 	35	% 	 				  	$	0	  	  			
		  		  	  
	  
	 	 				  				  			
	 12.
	  	Less: Contra Accounts, Prebills, Progress Billings, Retentions, bill and holds, returns	  				 				  	$	0	  	  			
	 13.
	  	Less: Over 90 day A/R credits	  				 				  	$	0	  	  			
	 14.
	  	Add: Lines 6 through 13 - Total Ineligible Accounts	  				 				  	$	0	  	  			
	 15.
	  	NET ELIGIBLE ACCOUNTS RECEIVABLE	  				 				  				  	$	0	  
	 16.
	  	Account Receivable Advance Rate	  				 				  				  	 	80	% 
	 17.
	  	ACCOUNTS RECEIVABLE BORROWING BASE	  				 				  				  	$	0	  
	 18.
	  	INVENTORY	  				 				  				  			
	 19.
	  	 Eligible Inventory Value as of ______________
 ELIGIBLE AMOUNT OF INVENTORY (lesser of (1) 50% of #19 or (2) 50% of #17; not to exceed $13,200,000)
	  				 				  				  			
		  		  				 	  
	  
	 	  				  			
	 20.
	  	MAXIMUM AVAILABLE LINE OF CREDIT	  				 	$	33,000,000	  	  				  			
		  		  				 	  
	  
	 	  				  			
	 21.
	  	Less: Outstanding Loan Balance	  				 				  				  	$	0	  
	 22.
	  	AVAILABLE FOR DRAW/NEED TO PAY	  				 				  				  	$	0	  

 If line #22 is a negative number, this amount must be remitted to the Bank immediately to bring loan balance into
compliance. By signing this form you authorize the bank to deduct any advance amounts directly from the company’s checking account at Bridge Bank in the event there is an Overadvance. 

The undersigned represents and warrants that the foregoing is true, complete and correct, and that the information reflected in this Borrowing Base
Certificate complies with the representations and warranties set forth in the Amended and Restated Loan and Security Agreement between the undersigned and Bridge Bank, National Association and Comerica Bank. 

 

									
		 	 	 		 	Date:	 	                    
		 	Prepared By:	 		 		 	
					
		 	 	 		 	Date:	 	                    
		 	Bank Reviewed:	 		 		 	

 CORPORATE RESOLUTIONS TO BORROW 

 
  
 Borrower: ENPHASE ENERGY, INC 
  

I, the undersigned Secretary or Assistant Secretary of ENPHASE ENERGY, INC. (the “Corporation”), HEREBY CERTIFY that the
Corporation is organized and existing under and by virtue of the laws of the State of Delaware. 
 I FURTHER CERTIFY that
attached hereto as Attachments 1 and 2 are true and complete copies of the Certificate of Incorporation, as amended, and the Restated Bylaws of the Corporation, each of which is in full force and effect on the date hereof. 

I FURTHER CERTIFY that pursuant to the Unanimous Written Consent of the Directors of the Corporation, the following resolutions (the
“Resolutions”) were adopted. 
 BE IT RESOLVED, that any one (1) of the following named officers, employees, or
agents of this Corporation, whose actual signatures are shown below 
  

					
	 NAMES
	  	 POSITION
	 	 ACTUAL SIGNATURES

	 Paul Nahi
	  	Chief Executive Officer	 	/s/ Paul Nahi
			
	 Sanjeev Kumar
	  	Chief Financial Officer	 	 
			
	 Bert Garcia
	  	Controller	 	 

 acting for and on behalf of this Corporation and as its act and deed be, and they hereby are, authorized and empowered:

 Borrow Money. To borrow from time to time from Bridge Bank, National Association and Comerica Bank (collectively, the
“Lenders”), on such terms as may be agreed upon between the officers, employees, or agents of the Corporation and the Lenders, such sum or sums of money as in their reasonable judgment should be borrowed, without limitation. 

Execute Loan Documents. To execute and deliver to the Lenders that certain Amended and Restated Loan and Security Agreement dated as of
March 24, 2011 (as amended from time to time, including by that certain First Loan and Security Modification Agreement dated as of November 14, 2011 and that certain Second Loan and Security Modification Agreement dated as of December 30,
2011, collectively, the “Loan Agreement”) and any other agreement entered into between Corporation and the Lenders in connection with the Loan Agreement, including any amendments, all as amended or extended from time to time (collectively,
with the Loan Agreement, the “Loan Documents”), and also to execute and deliver to the Lenders one or more renewals, extensions, modifications, refinancings, consolidations, or substitutions for the Loan Documents, or any portion thereof.

 Grant Security. To grant a security interest to Lenders in the Collateral described in the Loan Documents, which security
interest shall secure all of the Corporation’s Obligations, as described in the Loan Documents. 
 Negotiate Items. To
draw, endorse, and discount with Lenders all drafts, trade acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the Corporation or in which the Corporation may have an interest, and either to receive cash for
the same or to cause such 

 
proceeds to be credited to the account of the Corporation with Lenders, or to cause such other disposition of the proceeds derived therefrom as they may deem advisable. 

Letters of Credit. To execute letter of credit applications and other related documents pertaining to Lenders’ issuance of
letters of credit. 
 Corporate Credit Cards. To execute corporate credit card applications and agreements and other
related documents pertaining to Lenders’ provision of corporate credit cards. 
 Further Acts. In the case of lines
of credit, to designate additional or alternate individuals as being authorized to request advances thereunder, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver such other
documents and agreements as they may in their discretion deem reasonably necessary or proper in order to carry into effect the provisions of these Resolutions. 
 BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, that these Resolutions
shall remain in full force and effect and Lenders may rely on these Resolutions until written notice of their revocation shall have been delivered to and received by Lenders. Any such notice shall not affect any of the Corporation’s agreements
or commitments in effect at the time notice is given. 
 I FURTHER CERTIFY that the officers, employees, and agents named above
are duly elected, appointed, or employed by or for the Corporation, as the case may be, and occupy the positions set forth opposite their respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that
the Resolutions are in full force and effect and have not been modified or revoked in any manner whatsoever. 
 IN WITNESS
WHEREOF, I have hereunto set my hand on December 29, 2011 and attest that the signatures set opposite the names listed above are their genuine signatures. 

 

	
	CERTIFIED AND ATTESTED BY:
	
	/s/ John H. Sellers

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