0001204459-12-000459.txt : 20120306 0001204459-12-000459.hdr.sgml : 20120306 20120306170937 ACCESSION NUMBER: 0001204459-12-000459 CONFORMED SUBMISSION TYPE: SC 13G PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20120306 DATE AS OF CHANGE: 20120306 GROUP MEMBERS: ANDREW KAHN GROUP MEMBERS: DONALD M. CAMPBELL GROUP MEMBERS: PARTNERS FOR GROWTH III, LLC SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: COMVERGE, INC. CENTRAL INDEX KEY: 0001372664 STANDARD INDUSTRIAL CLASSIFICATION: AUTO CONTROLS FOR REGULATING RESIDENTIAL & COMML ENVIRONMENT [3822] IRS NUMBER: 223543611 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G SEC ACT: 1934 Act SEC FILE NUMBER: 005-82808 FILM NUMBER: 12671389 BUSINESS ADDRESS: STREET 1: 5390 TRIANGLE PARKWAY STREET 2: SUITE 300 CITY: NORCROSS STATE: GA ZIP: 30092 BUSINESS PHONE: 678-392-4954 MAIL ADDRESS: STREET 1: 5390 TRIANGLE PARKWAY STREET 2: SUITE 300 CITY: NORCROSS STATE: GA ZIP: 30092 FORMER COMPANY: FORMER CONFORMED NAME: Comverge, Inc. DATE OF NAME CHANGE: 20060814 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Partners for Growth III, L.P. CENTRAL INDEX KEY: 0001481849 IRS NUMBER: 271477996 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G BUSINESS ADDRESS: STREET 1: 180 PACIFIC AVENUE CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 415-912-5892 MAIL ADDRESS: STREET 1: 180 PACIFIC AVENUE CITY: SAN FRANCISCO STATE: CA ZIP: 94111 SC 13G 1 sch13g.htm SCHEDULE 13G Comverge, Inc.: Schedule 13G - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13G

UNDER THE SECURITIES EXCHANGE ACT OF 1934

Comverge, Inc.
(Name of Issuer)

Common Stock, $0.001 Par Value
(Title of Class of Securities)

205859101
(Cusip Number)

February 24, 2012
(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

[   ]   Rule 13d-1(b)

[X] Rule 13d-1(c) 

[   ]  Rule 13d-1(d)

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).



CUSIP No. 205859101 Page 2
     
1

NAMES OF REPORTING PERSONS

 

Partners for Growth III, LLC

 
 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 

26-4085062

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 

 

(a)     [   ]
(b)     [X]

 
 
3

SEC USE ONLY

 

 

 
 
4

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

 
 

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5

SOLE VOTING POWER

 

-0-

 
 
6

SHARED VOTING POWER

 

1,346,154 (See Item 4)

 
 
7

SOLE DISPOSITIVE POWER

 

 -0-

 
 
8

SHARED DISPOSITIVE POWER

 

1,346,154 (See Item 4)

 
 
9

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,346,154 (See Item 4)

10

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

[   ]

 
 
11

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

5.0% (See Item 4)

 
 
12

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 
 



CUSIP No. 205859101 Page 3
     
1

NAMES OF REPORTING PERSONS

 

Partners for Growth III, L.P.

 
 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 

27-1477996

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 

 

(a)     [   ]
(b)     [X]

 
 
3

SEC USE ONLY

 

 

 
 
4

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

 
 

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5

SOLE VOTING POWER

 

-0-

 
 
6

SHARED VOTING POWER

 

1,346,154 (See Item 4)

 
 
7

SOLE DISPOSITIVE POWER

 

 -0-

 
 
8

SHARED DISPOSITIVE POWER

 

1,346,154 (See Item 4)

 
 
9

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,346,154 (See Item 4)

10

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

[   ]

 
 
11

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

5.0% (See Item 4)

 
 
12

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

PN

 
 



CUSIP No. 205859101 Page 4
     
1

NAMES OF REPORTING PERSONS

 

Andrew Kahn

 
 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 

 

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 

 

(a)     [   ]
(b)     [X]

 
 
3

SEC USE ONLY

 

 

 
 
4

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

 
 

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5

SOLE VOTING POWER

 

-0-

 
 
6

SHARED VOTING POWER

 

1,346,154 (See Item 4)

 
 
7

SOLE DISPOSITIVE POWER

 

 -0-

 
 
8

SHARED DISPOSITIVE POWER

 

1,346,154 (See Item 4)

 
 
9

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,346,154 (See Item 4)

10

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

[   ]

 
 
11

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

5.0% (See Item 4)

 
 
12

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 
 



CUSIP No. 205859101 Page 5
     
1

NAMES OF REPORTING PERSONS

 

Donald M. Campbell

 
 

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 

 

 
2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 

 

(a)     [   ]
(b)     [X]

 
 
3

SEC USE ONLY

 

 

 
 
4

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

 
 

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5

SOLE VOTING POWER

 

-0-

 
 
6

SHARED VOTING POWER

 

1,346,154 (See Item 4)

 
 
7

SOLE DISPOSITIVE POWER

 

 -0-

 
 
8

SHARED DISPOSITIVE POWER

 

1,346,154 (See Item 4)

 
 
9

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

1,346,154 (See Item 4)

10

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

[   ]

 
 
11

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

5.0% (See Item 4)

 
 
12

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 
 


Item 1(a). Name of Issuer

Comverge, Inc.

Item 1(b). Address of Issuer’s Principal Executive Offices:

5390 Triangle Parkway, Suite 300, Norcross, GA 30092.

Item 2(a). Names of Persons Filing:

Each of the following is a reporting person (“Reporting Person”):

Partners for Growth, LLC, a Delaware limited liability company (“PFGLLC”)
Partners for Growth III, L.P., a Delaware limited partnership (“PFG3”)
Andrew Kahn
Donald M. Campbell

Item 2(b). Address or principal business office or, if none, residence:

The principal business address of each Reporting Person is 150 Pacific Avenue, San Francisco, CA 94111.

Item 2(c). Citizenship:

Reference is hereby made to response number 4 on each of pages 2-5 of this Schedule 13G (this “Schedule”), which responses are incorporated herein by reference.

Item 2(d). Title and Class of Securities:

Common Stock, $0.001 par value per share.

Item 2(e). CUSIP No.:

205859101

Item 3.

Not applicable.

Item 4. Ownership

Reference is hereby made to responses 5-9 and 11 on pages 2 - 5 of this Schedule, which responses are incorporated herein by reference.

The securities to which this Schedule relates (the “Shares”) are issuable upon conversion of the Amended and Restated Senior Convertible Promissory Note (the “Note”), held by PFG3 pursuant to that certain Loan and Security Agreement (the “Loan Agreement”), dated as of November 5, 2010, by and among the Issuer, PFG3 and various other parties thereto, as amended by Modification No. 1 to Loan and Security Agreement, dated as of March 31, 2011, by and between the Issuer, PFG3 and various other parties thereto. The initial conversion price of the Note was $9.41 per Share.

SVB Financial Group (“SVBFG”), the parent company of Silicon Valley Bank, held an equitable interest (the “SVB Interest”) in fifty-five percent of the aggregate principal amount of the Note held by PFG3 (the “PFG Amount”), pursuant to a participation arrangement between SVBFG, Silicon Valley Bank, PFGLLC and PFG3. SVBFG has no power or authority to cause the purchase, sale or disposition of the Note, or to vote any of the Shares issuable upon conversion thereof.


PFG3 sold $7,650,000 aggregate principal amount of the PFG Amount to Grace Bay Holdings II, LLC (“Grace Bay”) pursuant to that certain Assignment and Assumption Agreement, dated as of February 24, 2012 (the “Assignment Agreement”), and was designated as collateral agent for the lenders and sub-agent for Grace Bay, in each case pursuant to the Assignment Agreement. Proceeds from the sale to Grace Bay were used by PFG3 to extinguish the SVB Interest in the PFG Amount under the Participation Agreement. SVBFG disclaims all beneficial ownership as to the Shares.

On March 2, 2012, PFG3 gave notice of its right under the Assignment Agreement to put its remaining interest in the Note to Grace Bay (the “Put”). Grace Bay has five (5) business days from the date of the notice within which to deliver consideration in settlement of the Put, and the date of such delivery is deemed the effective date of the sale and assignment of PFG3’s remaining interest in the Note to Grace Bay (the “Put Effective Date”). From and after the Put Effective Date, none of the Reporting Persons will have any voting or dispositive control over the Notes or the Shares. As of the date hereof, the PFG3 Amount equals $7,350,000 in aggregate principal amount of the Note, convertible into 1,346,154 Shares at a conversion price of $5.46 per Share.

PFGLLC, as PF3’s general partner, and Andrew Kahn and Donald M. Campbell, as controlling members and Managers of PFGLLC, may be deemed to beneficially own the Shares for the purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “Act”), insofar as they may be deemed to have the power to direct the voting or disposition of those Shares.

Neither the filing of this Schedule nor any of its contents shall be deemed to constitute an admission that PFG3, PFGLLC, Andrew Kahn or Donald M. Campbell are or were, for any other purpose, the beneficial owners of any of the Shares, and each of PFG3, PFGLLC, Andrew Kahn or Donald M. Campbell disclaims all beneficial ownership as to the Shares, except to the extent of his or its pecuniary interests therein, if any.

Under the definition of “beneficial ownership” in Rule 13d-3 under the Act, it is also possible that the individual general partners, executive officers, and members of the foregoing entities may be deemed the “beneficial owners” of some or all of the Shares insofar as they may be deemed to share the power to direct the voting or disposition of the Shares. Neither the filing of this Schedule nor any of its contents shall be deemed to constitute an admission that any of such individuals is or was, for any purpose, the beneficial owner of any of the Shares, and such beneficial ownership is expressly disclaimed.

The calculation of percentage of beneficial ownership in response number 11 on each of pages 2 - 5 was derived from the Issuer’s Prospectus Supplement to the Prospectus Dated November 10, 2009, filed with the Securities and Exchange Commission (the “SEC”) on December 1, 2011, in which the Issuer stated that the number of shares of its common stock outstanding as of December 1, 2011 was 25,430,700 shares of Common Stock.

Item 5. Ownership of Five Percent or Less of a Class

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following: [X]

Item 6. Ownership of More than 5 Percent on Behalf of Another Person

Reference is hereby made to Item 4 of this Schedule, which Item is hereby incorporated by reference herein.

Item 7. Identification and Classification of the Subsidiary which Acquired the Security Being Reported on by the Parent Holding Company or Control Person.

Not applicable.

Item 8. Identification and Classification of Members of the Group


The Reporting Persons are filing this Schedule 13G jointly, but not as members of a group, and each expressly disclaims membership in a group.

Item 9. Notice of Dissolution of Group

Not applicable.

Item 10. Certifications

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.


SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: March 5, 2012

  PARTNERS FOR GROWTH III, L.P.  
  By: Partners for Growth III, LLC  
  Its: General Partner  
       
       
  By: /s/ Andrew Kahn  
  Name: Andrew Kahn  
  Its: Manager  
       
       
  PARTNERS FOR GROWTH III, LLC  
       
       
  By: /s/ Andrew Kahn  
  Name: Andrew Kahn  
  Its: Manager  
       
       
       
  /s/ Andrew Kahn  
  Andrew Kahn  
       
       
       
  /s/ Donald M. Campbell  
  Donald M. Campbell  


EXHIBIT INDEX

Exhibit Number   Exhibit Name
     
Exhibit 99.1 Joint Filing Agreement, dated as of March 5, 2012, by and among each of the Reporting Persons.
     
Exhibit 99.2 Assignment and Assumption Agreement, dated as of February 24, 2012, by and between Partners for Growth III, L.P. and Grace Bay Holdings II, LLC.
     
Exhibit 99.3 Loan and Security Agreement, dated as of November 5, 2010, by and among Comverge, Inc., its subsidiaries, and Partners for Growth III, LP (incorporated by reference to Exhibit 10.47 to the Issuer’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, filed by the Issuer with the SEC on March 9, 2011).
     
Exhibit 99.4 Modification No. 1 to Loan and Security Agreement (“Modification”), dated as of March 31, 2011, by and between Partners for Growth III, LP, and each of Comverge, Inc., Alternative Energy Resources, Inc., Enerwise Global Technologies, Inc., Comverge Giants, LLC, Public Energy Solutions, LLC, Public Energy Solutions NY, LLC, and Clean Power Markets, Inc. (incorporated by reference to Exhibit 10.1 to the Issuer’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2011, filed by the Issuer with the SEC on May 5, 2011).
     
Exhibit 99.5   Powers of Attorney for the Reporting Persons.


EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1 Comverge, Inc.: Exhibit 99.1 - Filed by newsfilecorp.com

Exhibit 99.1

JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)

The undersigned acknowledge and agree that the foregoing statement on Schedule 13G is filed on behalf of each of the undersigned and that all subsequent amendments to this statement shall be filed on behalf of each of the undersigned without the necessity of filing additional joint filing statements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning him, her or it contained herein, but shall not be responsible for the completeness and accuracy of the information concerning the other entities or persons, except to the extent that he, she or it knows or has reason to believe that such information is inaccurate.

Date: March 5, 2012

  PARTNERS FOR GROWTH III, L.P.  
  By: Partners for Growth III, LLC  
  Its: General Partner  
       
       
  By: /s/ Andrew Kahn  
  Name: Andrew Kahn  
  Its: Manager  
       
       
  PARTNERS FOR GROWTH III, LLC  
       
       
  By: /s/ Andrew Kahn  
  Name: Andrew Kahn  
  Its: Manager  
       
       
       
  /s/ Andrew Kahn  
  Andrew Kahn  
       
       
       
  /s/ Donald M. Campbell  
  Donald M. Campbell  


EX-99.2 3 exhibit99-2.htm EXHIBIT 99.2 Comverge, Inc.: Exhibit 99.2 - Filed by newsfilecorp.com

Exhibit 99.2

EXECUTION VERSION

Assignment and Assumption

This Assignment and Assumption (this “ Assignment and Assumption ”) is dated as of the Effective Date set forth below and is entered into by and between the Assignor identified in item 1 below (the “ Assignor ”) and the Assignee identified in item 2 below (the “ Assignee ”). Capitalized terms used but not defined herein shall have the meanings given to them in the Loan Agreement identified below (as amended, the “ Loan Agreement ”), receipt of a copy of which is hereby acknowledged by the Assignee. The capitalized terms “Note” and “Notes” used herein shall have the same meaning as “Loan” and “Loans”, respectively, in the Loan Agreement. The Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Terms and Conditions and the Loan Agreement, as of the Effective Date (i) all of the Assignor’s rights and obligations in its capacity as a lender and holder of Notes outstanding under the Loan Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the Notes identified below and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a lender and a holder of Notes) against any Person, whether known or unknown, arising under or in connection with the Loan Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, all claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by the Assignor to the Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as the “ Assigned Interest ”). Each such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

1. Assignor: Partners for Growth III, L.P. (“ PFG ”)
     
2. Assignee: Grace Bay Holdings II, LLC (“ Grace Bay ”)
     
3. Borrowers: Comverge, Inc., a Delaware corporation, Alternative Energy Resources, Inc., a Delaware corporation, Enerwise Global Technologies, Inc., a Delaware corporation, Comverge Giants, LLC, a Delaware limited liability company, Public Energy Solutions, LLC, a New Jersey limited liability company, Public Energy Solutions NY, LLC, a Delaware limited liability company, and Clean Power Markets, Inc., a Pennsylvania corporation
     
4. Loan Agreement: The Loan and Security Agreement dated as of November 5, 2010, by and among the Borrowers and PFG, as the sole holder of the Notes
     
5. Assigned Interest:  

            Aggregate Amount of              
            Notes Issued under     Amount of Notes     Percentage Assigned of  
Assignor     Assignee     the Loan Agreement     Assigned     Notes  
                           
PFG     Grace Bay   $ 15,000,000   $ 7,650,000     51.0%  

6.

Effective Date: February 24, 2012



The terms and provisions set forth in this Assignment and Assumption (and the annexes and exhibits attached hereto) are hereby agreed to by the parties hereto as of the Effective Date.

  ASSIGNOR
   
PARTNERS FOR GROWTH III, L.P.
   
By: /s/ Lorraine Nield                                      
  Title: Lorraine Nield
  Name: Manager

[SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION]

  ASSIGNEE
   
GRACE BAY HOLDINGS II, LLC
   
By: /s/ Richard Siegel                                      
Title: Richard Siegel
Name: Authorized Signatory

[SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION]


ANNEX 1

TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION 1

1. Representations and Warranties .

(a) Assignor .

(i) Assignor Representations and Warranties . The Assignor (A) represents and warrants to be true and correct in all material respects that (1) it is the legal and beneficial owner of the Assigned Interest, (2) the Assigned Interest is free and clear of any Lien (as defined below), (3) it has full power and authority, and has taken all action necessary, to execute and deliver the Assignment and Assumption (and the annexes and the exhibits attached thereto) and to consummate the transactions contemplated hereby, (4) the amounts set forth in Section 5 of the Assignment and Assumption are true, correct and complete and PFG controls all aspects (including voting and consent rights, subject to any consent rights with respect to amendments to the Loan Documents held by the Borrowers), and legally and beneficially owns all, of the Notes and other Obligations under the Loan Documents immediately prior to giving effect to the Assignment and Assumption (and the annexes and exhibits thereto), (5) none of the Notes have been assigned or converted into any Equity Interest (as defined below) (whether by Optional Conversion, Mandatory Conversion or otherwise), (6) no Subsequent Notes have been issued, (7) a notice of Assignor’s intention to exercise the Amortization Right has been delivered by the Assignor and a true, correct and complete copy of such notice is attached as Exhibit A, (8) a workspace called “Project Scion” on the onehub website at https://ws.onehub.com contains as of the day immediately prior to the Effective Date and on the Effective Date true, correct and complete copies of the Loan Agreement and all other Loan Documents (including any amendments, restatements, supplements and other modifications with respect thereto executed and delivered by Assignor, any Borrower, any guarantor or any third party bound by a Loan Document) that materially affect the rights of any holder of the Notes and a list of all such Loan Documents is attached as Exhibit B, (9) the levels for the Adjusted Quick Ratio and the Tangible Net Worth financial covenants for the 2012 fiscal year have not been set by PFG or agreed to and the Assignor maintains all rights provided under the Loan Documents with respect to setting such levels, (10) the Minimum Revenues thresholds for the 2012 fiscal year have not been set or agreed to and the Assignor maintains all rights provided under the Loan Documents with respect to setting such Minimum Revenues, subject to the Minimum Revenues threshold percentage set forth in Section 1(d) of the Schedule to the Loan Agreement (as amended by Modification No. 1 to the Loan and Security Agreement dated as of March 31, 2011), (11) (I) the $2,000,000 Deposit has not been demanded by the Assignor; provided , however , the Assignor did discuss and correspond with the Borrowers such potential Deposit in connection with a Qualified Financing and (II) Silicon Valley Bank has not previously given its consent to PFG to demand any such Deposit, (12) to Assignor’s knowledge, there has been no Qualifying Financing that would cause the Assignor’s right to demand a Deposit to lapse or to otherwise be compromised or eliminated, (13) the Defaults or Events of Default specified on Exhibit C have occurred and are continuing (although the Borrowers have, outside of any applicable cure period provided for such Default, delivered a non-final draft Compliance Certificate for the month ending December 31, 2011, the failure of which to timely deliver a Compliance Certificate required by Section 6(a) of the Schedule to the Loan Agreement constitutes the Event of Default set forth in Exhibit C) and have not been expressly waived or otherwise compromised and, except as set forth in the communications appended as Exhibit A, the Assignor has not delivered any notice of such Defaults or Events of Default to the Borrowers, (14) the Assignor has not granted, sold, assigned or transferred any of, and has not otherwise impaired, its voting, consent or similar rights under the Loan Documents, (15) it has not previously waived, eliminated or otherwise compromised the Amortization Right, (16) it is sophisticated with respect to decisions to sell, assign or transfer assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to sell, assign and transfer the Assigned Interest, is experienced in selling, assigning and transferring assets of such type, (17) it has been accorded the opportunity to receive such documents and information as it deems appropriate to make its own credit analysis and decision to enter into the Assignment and Assumption and to sell, assign and transfer the Assigned Interest, and (18) it has, independently and without reliance upon the Assignee or any of the Assignee’s Affiliates and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into the Assignment and Assumption and to sell, assign and transfer the Assigned Interest; and (B) assumes no responsibility with respect to (1) any statements, warranties or representations made by the Borrowers or any guarantors in or in connection with the Loan Agreement or any other Loan Document, (2) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any Collateral thereunder, (3) the financial condition of the Borrowers, any of their Subsidiaries or Affiliates or (4) the performance or observance by the Borrowers, any of their Subsidiaries or Affiliates of any of their respective obligations under any Loan Document. In construing the above representations and warranties, terms such as “waiver”, “elimination”, “impairment”, “compromise” and derivatives expressly exclude any such waiver, elimination, impairment or compromise other than expressly effected by Assignor. The Assignor acknowledges, understands and agrees that, (y) other than as provided in the Assignment and Assumption (and the annexes and exhibits thereto), the Assignee makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Assignment and Assumption (and the annexes and exhibits thereto) or in any related document or agreement and (z) the Assignee makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrowers or any guarantors.

_________________________
1
Capitalized terms used in this Terms and Conditions for Assignment and Assumption without definition shall have the meanings ascribed to such terms in the Assignment and Assumption to which this Terms and Conditions for Assignment and Assumption is attached.


(ii) Exclusion from Assignor Representations and Warranties . Except as set forth in Section 1(a)(i), the Assignment and Assumption is made by Assignor without representations or warranties whatsoever, whether expressed, implied or imposed by law. In addition, the representations and warranties given in Section 1(a)(i) are given (A) without any representations or warranties with respect to the genuineness of any signature other than those made by or on behalf of Assignor; (B) without any representations or warranties with respect to the collectability of any amount owed by any Borrower or any guarantor of the Borrowers’ Obligations under any of the Loan Documents; (C) without any representations as to the financial condition of any Borrower or any guarantor of the Borrowers’ Obligations under any of the Loan Documents; (D) without any of the representations or warranties described in Article 3 of the Uniform Commercial Code as enacted in the State of California; (E) without any representations or warranties with respect to the legality, validity, sufficiency or enforceability of any of the Loan Documents; (F) without any representations or warranties with respect to the validity, enforceability, attachment, priority, or perfection of any security interest, attachment, relief, or encumbrance included or includable in the Loan Documents, or the compliance with applicable law of any proceedings commenced or followed by Assignor with respect to the Loan Documents, including the Notes; and (G) without any representations or warranties with respect to the existence, value, access to or condition of any Collateral granted (or purported to be granted) to Assignor under the Loan Documents, including, without limitation, as to any environmental matters (including without limitation, as to the existence of any hazardous materials).

(b) Assignee . The Assignee (i) represents and warrants that (A) it has full power and authority, and has taken all action necessary, to execute and deliver the Assignment and Assumption (and the annexes and exhibits attached thereto) and to consummate the transactions contemplated hereby and to become a holder of Notes under the Loan Agreement, (B) from and after the Effective Date, it shall be bound by the provisions of the Loan Agreement and the other Loan Documents (to the extent included in the list attached as Exhibit B) as a holder of Notes thereunder and, to the extent of the Assigned Interest, shall have the obligations of a holder of Notes thereunder, (C) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (D) it has been accorded the opportunity to receive such documents and information as it deems appropriate to make its own credit analysis and decision to enter into the Assignment and Assumption and to purchase the Assigned Interest, and (E) it has, independently and without reliance upon PFG and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into the Assignment and Assumption and to purchase the Assigned Interest; and (ii) agrees that (A) it will, independently and without reliance on the Assignor, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (B) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a holder of Notes.

2. Payments .

(a) From and after the Effective Date, all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) (a) for amounts accrued up to but excluding the Effective Date shall be made to the Assignor by the Borrowers and (b) for all amounts accrued from and including the Effective Date shall be made to the Assignee by the Borrowers (or, if such payment is received by the Assignor, by the Assignor).

(b) All principal and interest payments received by any holder of the Notes shall be apportioned ratably among the holders of the Notes (according to the unpaid principal balance of the Obligations to which such payments relate held by each holder of Notes) and all payments of fees, premiums and expenses received by any holder of the Notes (other than expenses that are for the Assignor’s or the Assignee’s separate account) shall be apportioned ratably among the holders of the Notes having a Pro Rata Share (as defined below) of the type of Obligation to which a particular fee, premium or expense relates. All payments in respect of a Note holder’s Pro Rata Share shall be made promptly and in no event later than three (3) Business Days after receipt by the recipient. All proceeds of Collateral shall be applied to reduce the Obligations outstanding (and shall be apportioned ratably among the holders of the Notes as set forth in the immediately preceding sentence), and, thereafter, to the Borrowers (to be wired to an account designated by the Borrowers) or such other Person entitled thereto under applicable law. “ Pro Rata Share ” means, at any time, the percentage obtained by dividing (y) the unpaid principal amount of a Note holder’s portion of the unpaid principal amount of the Notes by (z) the unpaid principal amount of the Notes.


3. Amendment, Waiver and Modification Rights . Any amendment, waiver, supplement or other modification of any provision of the Loan Agreement or any other Loan Document, and any consent with respect to any departure by any Borrower or any guarantor therefrom, shall be in writing and shall only require the signature of the Assignee as the majority holder of the Notes to be effective; provided , however , that no such amendment, waiver, supplement, consent or other modification shall be effective, unless in writing and signed also by the Assignor if the effect of such amendment, waiver, supplement, consent or other modification would cause disparate treatment on the Notes held by the Assignor. The Assignor agrees to use any voting and consent rights it has under the Loan Documents as requested by the Assignee (except as set forth in the proviso in the immediately preceding sentence). The Assignor hereby agrees to enter into amendments to the Loan Documents that are required to implement and to effectuate the provisions set forth in the Assignment and Assumption (and the annexes and exhibits thereto). The Assignor hereby irrevocably appoints the Assignee its attorney-in-fact, with full authority in the place and stead of the Assignor and in the name of the Assignor or otherwise, to take any action and to execute any instrument which the Assignee may reasonably deem necessary or advisable to accomplish the purposes of the Assignment and Assumption (including the annexes and exhibits thereto), including, without limitation, to vote or consent to any amendment, waiver, supplement, consent or other modification to any provision of any Loan Document proposed by the Assignee (other than with respect to any amendment, waiver, supplement, consent or other modification set forth in the proviso in the first sentence of this Section 3).

4. Call and Put Rights; Right of First Offer . The Assignor and the Assignee hereby agree that:

(a) At all times from the Effective Date up to and including the date that is the 18 month anniversary of the Effective Date (such end date, the “ Put/Call Expiry Date ”):

(i) Other than during (i) any proceeding commenced by or against any Borrower or any guarantor under any provision of title 11 of the United States Code (as in effect from time to time) or under any other state or federal bankruptcy, insolvency or similar law or (ii) the existence of any Default or Event of Default under Section 6.1(g) or (h) of the Loan Agreement, the Assignee shall have the obligation to purchase from the Assignor all of the outstanding Notes and other Obligations held by the Assignor at a price equal to par value of the Notes to be purchased by the Assignee from the Assignor plus $1,500,000 (the “ Put Purchase Price ”) upon five Business Days notice from the Assignor to the Assignee (such sale and purchase, the “ Put Transaction ”). Assignee shall promptly and in no event later than the fifth Business Day following the receipt of such notice by the Assignee pay such Put Purchase Price, without deduction of any kind, to Assignor. The effective date of such Put Transaction shall be the date Assignor receives payment of the Put Purchase Price from Assignee.

(ii) The Assignor shall have the obligation to sell to the Assignee all (but not less than all) of the outstanding Notes and other Obligations held by the Assignor at a price equal to the sum of (A) par value of the Notes to be purchased by the Assignee from the Assignor plus (B) $1,500,000 (the sum of (A) and (B), the “ Call Purchase Price ”) upon five Business Days notice from the Assignee to the Assignor (such sale and purchase, the “ Call Transaction ”). Assignee shall promptly and in no event later than the fifth Business Day following the receipt of such notice by the Assignee pay such Call Purchase Price, without deduction of any kind, to Assignor. The effective date of such Call Transaction shall be the date Assignor receives payment of the Call Purchase Price from Assignee.

(iii) The Assignor shall not transfer, assign or sell (or make any offer to do the same or to provide a right or option to do the same) the Notes and other Obligations held by the Assignor to any other Person other than the Assignee and its Affiliates.


(iv) If Assignee has not exercised its rights under Section 4(a)(ii) prior to the Put/Call Expiry Date and Assignor has not exercised its rights under Section 4(a)(i) or Section 7, as applicable, prior to the Put/Call Expiry Date, Assignor shall be deemed to have automatically given notice on the Put/Call Expiry Date to Assignee under Section 4(a)(ii) of a Put Transaction, unless such automatic Put Transaction has been revoked in writing by Assignor prior to the Put/Call Expiry Date.

(b) At all times after the date that is the 18 month anniversary of the Effective Date, before the Assignor sells, assigns or transfers any or all of the Notes or other Obligations held by the Assignor to any other Person, the Assignor shall offer in writing to the Assignee and its Affiliates the right to purchase the Notes and other Obligations held by the Assignor for the same price and on the same terms as then offered by any other Person (such offer provided to the Assignee, the “ Purchase Offer ”), and the Assignee shall have a period of 10 Business Days (the “ Acceptance Period ”) to accept such Purchase Offer. If the Assignee or its Affiliates do not accept the Purchase Offer within the Acceptance Period, then the Assignor shall have the right for a period of 10 Business Days following the last day of the Acceptance Period to sell, assign or transfer such Notes and other Obligations on the terms offered in the Purchase Offer to the Person who agreed to purchase such Notes and other Obligations on the terms set forth in the Purchase Offer. The foregoing procedures shall be followed for each new offer by any Person (other than the Assignee) to purchase any or all of the Notes and other Obligations held by the Assignor.

(c) For purposes of Sections 4(a) and (b) of this Terms and Conditions for Assignment and Assumption, “ par value ” shall include any accrued and unpaid interest, pro-rated to the date of payment of the Call Purchase Price or Put Purchase Price, as applicable, by Assignee.

(d) If at any time from the Effective Date up to and including the date that is the 18 month anniversary of the Effective Date, the Assignee sells any of the Notes (the “ Call Notes ”) purchased pursuant to a Call Transaction to any Person (other than (i) H.I.G. Capital Partners, LLC (“ HIG ”) or any of its Affiliates or (ii) any Borrower or any guarantor or any of their respective Affiliates in connection, with respect to this clause (ii), with a sale of any of the Equity Interests or any of the assets of the Borrowers or any of their Affiliates to HIG or any of its Affiliates) and receives from such Person Consideration (as defined below and as valued on the date of receipt by Assignee) in excess of the Call Purchase Price for such Call Notes (such excess, the “ Premium ”), the Assignee agrees to promptly pay to the Assignor such Premium received for such Call Notes. “ Consideration ” means cash, Equity Interests or other property of any kind that is reasonably capable of valuation.

(e) The sale and assignment of Assignor’s Notes to Assignee after the Effective Date pursuant to any of the provisions set forth in this Section 4 shall be documented in a customary assignment agreement in which (i) the sole representations made by Assignor are substantially in the form of Section 1(a)(i)(A) (1)–(5), (14) and (16)–(18) and without indemnity other than for liability incurred as a result of a breach in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) of such representations and warranties or covenants and agreements related to the transferring of any Collateral held or in the name of the Assignor to the Assignee and the making of any payments of the Obligations received by the Assignor to the Assignee and without survival of any obligations of Assignor with respect to such Notes that are sold and assigned, except (A) a general obligation (further assurances) to cooperate with Assignee at Assignee’s expense in transferring any Collateral held by, or in the name of, Assignor and (B) to pay over to Assignee any payments on Obligations received by Assignor after the effective date of such sale and assignment, and (ii) the sole representations made by Assignee are substantially in the form of Section 1(b)(i)(A)–(E) and without indemnity other than for liability incurred as a result of a breach in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) of such representations and warranties.

5. PFG as Collateral Agent .

(a) PFG shall, in its capacity as collateral agent (in such capacity, “ Collateral Agent ”) for the holders of the Notes and expressly subject to Sections 5(c), 5(d) and 5(e): (i) to the extent so reasonably requested by the Assignee, take such actions as Assignee may determine are necessary or desirable from time to time to maintain the perfection and priority of the Liens created or purported to be created by the Loan Documents, and (ii) take all instructions and orders from, and act solely at the direction of, the Assignee with respect to the exercise of any and all remedies given to the Assignor or any other holder of Notes with respect to the Collateral or otherwise, whether under the Loan Documents, applicable law or otherwise; provided , however , that (1) PFG hereby appoints, authorizes and directs Assignee to act as collateral sub-agent for PFG (and any successor or assignee of the Notes held by PFG) for purposes of the perfection of all Liens with respect to the Collateral and otherwise discharging any obligations PFG may have under clause (i) above, and (2) PFG may decline to take any action requested by Assignee (in any capacity) if it reasonably believes such action will result in exposure to liability in connection with Borrower (but any such decision to decline by PFG shall not affect in any way the Assignee’s rights as subagent pursuant to clause (1) above). Subject to Sections 5(c), (d) and (e) and the immediately preceding clause (2), PFG hereby agrees to at the direction of the Assignee enter into such agreements and documents, and to file or transmit such amendments or new documents as required by the Code or by applicable law, to (A) perfect the Liens granted to PFG under the Loan Documents so that the Liens perfect such Liens in favor of PFG as Collateral Agent for all of the holders of the Notes and with the same priority as the Liens granted to PFG under the Loan Documents immediately prior to giving effect to the Assignment and Assumption and (B) have the Obligations owed to and the guarantees provided under the Loan Documents apply to PFG as the Collateral Agent for all of the holders of the Notes. Under the Loan Documents, PFG, in its capacity as Collateral Agent, (x) is acting solely on behalf of the holders of the Notes, with duties that are entirely administrative in nature, notwithstanding the use of the defined term “Collateral Agent”, the terms “agent” and “collateral agent” and similar terms to refer to the Collateral Agent, which terms are used for title purposes only, (y) is not assuming any obligation under any Loan Document or any role as agent, fiduciary or trustee of or for any holder of the Notes and (z) shall have no implied functions, responsibilities, duties, obligations or other liabilities under any Loan Document, and the Assignee hereby waives and agrees not to assert any claim against the Collateral Agent based on the roles, duties and legal relationships expressly disclaimed in clauses (x) through (z) above.


(b) PFG shall promptly provide (and shall in any event use commercially reasonable efforts to provide within one Business Day) a copy of any notice, deliverable or other item received by PFG (whether in its capacity as Collateral Agent, a holder of the Notes or otherwise) in connection with the Loan Documents or any other related document or agreement to HIG.

(c) None of the Collateral Agent and its Related Persons (as defined in Section 6(e) below) shall be liable for any action taken or omitted to be taken by any of them under or in connection with any Loan Document, and the Assignee hereby waives and shall not assert (any right, claim or cause of action based thereon, except to the extent of liabilities resulting solely from the gross negligence or willful misconduct of the Collateral Agent in connection with the duties expressly set forth herein.

(d) The Assignee agrees to reimburse the Collateral Agent and each of its Related Persons (to the extent not reimbursed by any Borrower or any guarantor) promptly upon demand for the Assignee’s Pro Rata Share with respect to the Obligations of any reasonable, out-of-pocket and documented costs and expenses (including reasonable, out-of-pocket and documented fees, charges and disbursements of financial, legal and other advisors paid in the name of, or on behalf of, any Borrower or any guarantor) that may be incurred by the Collateral Agent or any of its Related Persons in connection with the discharge of Collateral Agent’s duties under Section 5(a)(i) and (ii).

(e) The Assignee further agrees to indemnify the Collateral Agent and each of its Related Persons (to the extent not reimbursed by any Borrower or any guarantor), from and against the Assignee’s aggregate Pro Rata Share with respect to the Obligations of the Liabilities (as defined in Section 6(h) below) that may be imposed on, incurred by or asserted against the Collateral Agent or any of its Related Persons in any matter relating to or arising out of, in connection with or as a result of or arising out of (y) any request, instruction or demand made by Assignee to Collateral Agent under Sections 5(a)(i) or (z) any action taken or omitted to be taken by the Collateral Agent or any of its Related Persons under or with respect to any of the foregoing; provided , however , that the Assignee shall not be liable to the Collateral Agent or any of its Related Persons to the extent such liability has resulted primarily from the negligence or willful misconduct of the Collateral Agent.


6. Grace Bay as Administrative Agent .

(a) The Assignor hereby appoints Grace Bay (together with any of its successors or assigns) as the administrative agent hereunder (in such capacity, “ Administrative Agent ”) and authorizes Grace Bay as Administrative Agent to (i) execute and deliver any and all Loan Documents and accept delivery thereof on its behalf from any Borrower or any guarantor, (ii) take such action on its behalf and to exercise all rights, powers and remedies and perform the duties as are delegated to the Assignor under such Loan Documents, (iii) act as the disbursing and collecting agent for the holders of Notes with respect to all payments and collections arising in connection with the Loan Documents (including in any bankruptcy, insolvency or similar proceeding), and each Person making any payment in connection with any Loan Document to any holder of the Notes is hereby authorized to make such payment to the Administrative Agent, (iv) file and prove claims and file other documents necessary or desirable to allow the claims of the holders of the Notes with respect to any Obligation in any bankruptcy, insolvency or similar proceeding, (v) execute any amendment, consent or waiver under the Loan Documents on behalf of the Assignor, (vi) negotiate and agree to, on behalf of all of the holders of Notes, to the levels and definitions of any financial covenants set forth in Section 5 of the Schedule to the Loan Agreement (including, without limitation, the Tangible Net Worth and the Adjusted Quick Ratio, (vii) have the sole right to decide whether to elect for, and to actually provide any notice with respect to electing for, any Amortization Right and (viii) exercise such powers as are incidental thereto.

(b) Under the Loan Documents, the Administrative Agent (i) is acting solely on behalf of the holders of the Notes, with duties that are entirely administrative in nature, notwithstanding the use of the defined term “Administrative Agent”, the terms “agent” and “administrative agent” and similar terms to refer to the Administrative Agent, which terms are used for title purposes only, (ii) is not assuming any obligation under any Loan Document or any role as agent, fiduciary or trustee of or for any holder of the Notes and (iii) shall have no implied functions, responsibilities, duties, obligations or other liabilities under any Loan Document, and the Assignor hereby waives and agrees not to assert any claim against the Administrative Agent based on the roles, duties and legal relationships expressly disclaimed in clauses (i) through (iii) above.

(c) The Assignor and Administrative Agent shall not be required to exercise any discretion or take, or to omit to take, any action, including with respect to enforcement or collection.

(d) The Administrative Agent may, upon any term or condition it specifies, delegate or exercise any of its rights, powers and remedies under, and delegate or perform any of its duties or any other action with respect to, any Loan Document by or through any trustee, co-agent, employee, attorney-in-fact and any other Person. Any such Person shall benefit from this Section 6 to the extent provided by the Administrative Agent.

(e) None of the Administrative Agent and its Related Persons (as defined below) shall be liable for any action taken or omitted to be taken by any of them under or in connection with any Loan Document, and the Assignor hereby waives and shall not assert (any right, claim or cause of action based thereon, except to the extent of liabilities resulting solely from the gross negligence or willful misconduct of the Administrative Agent in connection with the duties expressly set forth herein. “ Related Person ” means with respect to any Person, each Affiliate of such Person and each director, officer, employee, agent, trustee, representative, attorney, accountant and each insurance, environmental, legal, financial and other advisor and other consultants and agents of or to such Person or any of its Affiliates, together with, if such Person is the Administrative Agent, each other Person or individual designated, nominated or otherwise mandated by or helping the Administrative Agent.

(f) The Administrative Agent and its Affiliates may make loans and other extensions of credit to, acquire Equity Interests of, engage in any kind of business with, any Borrower or any guarantor or Affiliate thereof as though it were not acting as Administrative Agent and may receive separate fees and other payments therefor.

(g) The Assignor agrees to reimburse the Administrative Agent and each of its Related Persons (to the extent not reimbursed by any Borrower or any guarantor) promptly upon demand for such Lender’s Pro Rata Share with respect to the Obligations of any reasonable, out-of-pocket and documented costs and expenses (including reasonable, out-of-pocket and documented fees, charges and disbursements of financial, legal and other advisors paid in the name of, or on behalf of, any Borrower or any guarantor) that may be incurred by the Administrative Agent or any of its Related Persons in connection with the preparation, execution, delivery, administration, modification, consent, waiver or enforcement of, or the taking of any other action (whether through negotiations, through any work-out, bankruptcy, restructuring or other legal or other proceeding (including without limitation, preparation for and/or response to any subpoena or request for document production relating thereto) or otherwise) in respect of, or legal advice with respect to its rights or responsibilities under, any Loan Document.


(h) The Assignor further agrees to indemnify the Administrative Agent and each of its Related Persons (to the extent not reimbursed by any Borrower or any guarantor), from and against the Assignor’s aggregate Pro Rata Share with respect to the Obligations of the Liabilities (as defined below) that may be imposed on, incurred by or asserted against the Administrative Agent or any of its Related Persons in any matter relating to or arising out of, in connection with or as a result of any Loan Document, any related document or agreement or any other act, event or transaction related, contemplated in or attendant to any such document, or, in each case, any action taken or omitted to be taken by the Administrative Agent or any of its Related Persons under or with respect to any of the foregoing; provided , however , that the Assignor shall not be liable to the Administrative Agent or any of its Related Persons to the extent such liability has resulted primarily from the gross negligence or willful misconduct of the Administrative Agent. “ Liabilities ” means all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions, costs, fees, taxes, commissions, charges, disbursements and expenses (including those incurred upon any appeal or in connection with the preparation for and/or response to any subpoena or request for document production relating thereto), in each case of any kind or nature (including interest accrued thereon or as a result thereto and fees, charges and disbursements of financial, legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or otherwise.

(i) So long as PFG owns any Notes, the Assignee shall promptly (and shall in any event use commercially reasonable efforts to provide within one Business Day) a copy of any notice of an Event of Default received by the Assignee (whether in its capacity as Administrative Agent, a holder of the Notes or otherwise) in connection with the Loan Documents or any other related document or agreement to PFG.

7. Reservation of Rights . The Assignor reserves the right to convert the Notes it owns into Equity Interest in accordance with the Loan Agreement (an “ Assignor Note Conversion ”), at its sole discretion, at any time, without consent, but only upon (i) delivering written notice thereof 10 Business Days in advance and (ii) providing the Assignee the opportunity to consummate a Call Transaction pursuant to Section 4(a)(ii) within such 10 Business Day period; provided , however , if the Assignor does not consummate such Assignor Note Conversion on the Business Day after the 10 Business Day period mentioned above passes without the Assignee consummating a Call Transaction, the Assignor shall again follow the procedures set forth above prior to consummating any Assignor Note Conversion.

8. General Provisions . The Assignment and Assumption (and the annexes and exhibits thereto) shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. The Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of the Assignment and Assumption by electronic means of transmission shall be effective as delivery of a manually executed counterpart of the Assignment and Assumption. The Assignment and Assumption (and the annexes and exhibits attached thereto) shall be governed by, and construed in accordance with, the law of the State of California. The Assignment and Assumption (and the annexes and exhibits thereto) shall not be amended, restated, waived, supplemented or otherwise modified without the written consent of the Assignor and the Assignee. The term “ Lien ” means a security interest, lien, encumbrance or adverse claim. The term “ Equity Interest ” means, with respect to a Person, all of the shares, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in such Person, whether voting or nonvoting, including capital stock (or other ownership or profit interests or units), preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the United States Securities and Exchange Commission (and any successor thereto) under the Securities Exchange Act of 1934 (as in effect from time to time)).


9. Confidential . The Assignor and the Assignee each agree that the Assignment and Assumption (and the annexes and exhibits thereto) is for confidential use only and it will not disclose the Assignment and Assumption (and the annexes and exhibits thereto) (a) to any Person other than (i) its Affiliates, officers, directors, limited partners (participants and/or their respective representatives), employees, accountants, attorneys and other advisors, and then only on a “need-to-know” and confidential basis in connection with the transactions contemplated hereby and (ii) to the extent required by law, regulation, or other applicable judicial or governmental order and (b) other than notifying the Borrowers and Silicon Valley Bank of the amounts and percentages of the Obligations that were assigned by the Assignor to the Assignee.


EX-99.5 4 exhibit99-5.htm EXHIBIT 99.5 Comverge, Inc.: Exhibit 99.5 - Filed by newsfilecorp.com

Exhibit 99.5

POWER OF ATTORNEY

KNOW ALL BY THESE PRESENTS, that the undersigned hereby constitutes and appoints Gregory C. Smith, Hina Ahmad and Ian McLean, each of the law firm of Woodside Counsel PC, signing singly, the undersigned’s true and lawful attorney-in-fact to: (i) execute for and on behalf of the undersigned, in the undersigned’s capacity as a beneficial owner of shares of Common Stock of Comverge, Inc., a Delaware corporation (the “Company”), any Schedule 13D or Schedule 13G, and any amendments, supplements or exhibits thereto (including any joint filing agreements) required to be filed by the undersigned under Section 13 of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”), and any Forms 3, 4, and 5 and any amendments, supplements or exhibits thereto required to be filed by the undersigned under Section 16(a) of the Exchange Act; (ii) do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute any such Schedule 13D, Schedule 13G, Form 3, 4, or 5 and timely file such forms with the United States Securities and Exchange Commission and any stock exchange in which the Common Stock of the Company is listed on or approved for quotation in, if any; and (iii) take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact’s discretion.

The undersigned hereby grants to each such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact’s substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorneys-in-fact, in serving in such capacity at the request of the undersigned, are not assuming, nor is the Company assuming, any of the undersigned’s responsibilities to comply with Section 13 and Section 16 of the Exchange Act.

This Power of Attorney shall remain in full force and effect until the undersigned is no longer required to file reports or schedules under Section 13 or Section 16 of the Exchange Act with respect to the undersigned’s holdings of and transactions in securities issued by the Company, unless earlier revoked by the undersigned in a signed writing delivered to the foregoing attorneys-in-fact.


IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney to be executed as of this 5th day of March, 2012.

  PARTNERS FOR GROWTH III, L.P.  
       
  By: Partners for Growth III, LLC  
  Its: General Partner  
       
       
  By: /s/ Andrew Kahn  
  Name: Andrew Kahn  
  Its: Manager  
       
  PARTNERS FOR GROWTH III, LLC  
       
       
  /s/ Andrew Kahn  
  Andrew Kahn  
  Manager    
       
       
       
       
  /s/ Andrew Kahn  
  Andrew Kahn  
       
       
       
  /s/ Donald M. Campbell  
  Donald M. Campbell