ELECTRIC CITY CORP
EX-10.1
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<TYPE>EX-10.1
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<DESCRIPTION>EX-10.1
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<P align="right" style="font-size: 10pt"><FONT style="font-size=12pt">Exhibit&nbsp;10.1</u></FONT>



<P align="center" style="font-size: 12pt">AMENDMENT TO CONVERTIBLE TERM NOTE



<P align="left" style="font-size: 12pt; text-indent: 4%">This Amendment to Convertible Term Note (this &#147;Amendment&#148;) is made as of the 31st day of
August, 2004 between Laurus Master Fund, Ltd., a Cayman Islands corporation (the &#147;Holder&#148;) and
Electric City Corp., a Delaware corporation (&#147;Borrower&#148;).


<P align="center" style="font-size: 12pt">W I T N E S S E T H:



<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, Borrower has previously issued to Holder that certain Convertible Term Note is
original principal amount of $1,000,000 dated September&nbsp;11, 2003 (the &#147;Convertible Term Note&#148;); and


<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, Borrower and Holder have agreed to amend the Convertible Term Note in certain
respects as set forth herein;



<P align="left" style="margin-left:4%; font-size: 12pt">NOW, THEREFORE, the parties hereto hereby agrees as follows:


<P align="left" style="font-size: 12pt; text-indent: 4%">1.&nbsp;<U>Definitions</U>. Capitalized terms used herein and not otherwise defined herein are
used with the meanings given such terms in the Convertible Term Note.



<P align="left" style="margin-left:4%; font-size: 12pt">2. <U>Amendments</U>. The Convertible Term Note is hereby amended as follows:



<P align="left" style="margin-left:4%; font-size: 12pt">(A)&nbsp;The definition of Maturity Date is hereby amended to September&nbsp;1, 2006.


<P align="left" style="font-size: 12pt; text-indent: 4%">(B)&nbsp;The parties agree that, as of the date of this Amendment, the outstanding principal
balance of the Convertible Term Note is $676,789.81. Notwithstanding the provisions of Section&nbsp;1.2
of the Convertible Term Note, no payments of principal under the Convertible Term Note shall be due
on August, 1, 2004 or any Repayment Date thereafter prior to February&nbsp;1, 2005, and for each such
Repayment Date the Monthly Amount shall consist solely of accrued interest. Commencing on February
1, 2005 and on each Repayment Date thereafter, Borrower shall make monthly principal payments of
$35,000, with the remaining outstanding principal balance due and payable in full on the Maturity
Date (as amended by this Amendment), and for each such Repayment Date on or after February&nbsp;1, 2005,
the Monthly Amount shall include both principal then due and accrued interest.



<P align="left" style="margin-left:4%; font-size: 12pt">(C)&nbsp;The definition of Fixed Conversion Price in Section&nbsp;2.12 is amended to $1.64.



<P align="left" style="margin-left:4%; font-size: 12pt">3. <U>Miscellaneous</U>.


<P align="left" style="font-size: 12pt; text-indent: 4%">(A)&nbsp;<U>Captions</U>. Section captions and headings used in this Amendment are for
convenience only and are not part of and shall not affect the construction of this Amendment.


<P align="left" style="font-size: 12pt; text-indent: 4%">(B)&nbsp;<U>Governing Law</U>. This Amendment shall be governed by and construed in accordance
with the laws of the State of New York, without regard to principles of conflicts of laws. In the
event that any provision of this Amendment is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not affect the validity or
unenforceability of any other provision of this Amendment.


<P align="left" style="font-size: 12pt; text-indent: 4%">(C)&nbsp;<U>Counterparts; Facsimile Signature</U>. This Amendment may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which shall together
constitute but one and the same document. This Amendment may be executed by facsimile signature,
and any such facsimile signature by any party hereto shall be deemed to be an original signature
and shall be binding on such party to the same extent as if such facsimile signature were an
original signature.


<P align="left" style="font-size: 12pt; text-indent: 4%">(D)&nbsp;<U>Successors and Assigns</U>. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.


<P align="left" style="font-size: 12pt; text-indent: 4%">(E)&nbsp;<U>References</U>. From and after the date of execution of this Amendment, any reference
to the Convertible Term Note contained in any notice, request, certificate or other instrument,
document or agreement executed concurrently with or after the execution and delivery of this
Amendment shall be deemed to include this Amendment unless the context shall otherwise require.


<P align="left" style="font-size: 12pt; text-indent: 4%">(F)&nbsp;<U>Continued Effectiveness</U>. Notwithstanding anything contained herein, the terms of
this Amendment are not intended to and do not serve to effect a novation as to the Convertible Term
Note. The Convertible Term Note, as modified hereby, remains in full force and effect and are
hereby reaffirmed in all respects.


<P align="left" style="font-size: 12pt; text-indent: 4%">(G)&nbsp;<U>Construction</U>. Each party acknowledges that its legal counsel participated in the
preparation of this Amendment and, therefore, stipulates that the rule of construction that
ambiguities are to be resolved against the drafting party shall not be applied in the
interpretation of this Amendment to favor any party against the other.


<P align="left" style="font-size: 12pt">&#091;Balance of page left intentionally blank; signature page follows.&#093;


<P align="left" style="font-size: 12pt; text-indent: 4%">IN WITNESS WHEREOF, the parties have executed this Amendment to Convertible Term Note as of
the date first set forth above.


<P align="left" style="font-size: 12pt">ELECTRIC CITY CORP.

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Jeffrey Mistarz</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:<BR>
Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jeffrey Mistarz<BR>
Chief Financial Officer &#038; Treasurer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 12pt">LAURUS MASTER FUND, LTD.

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Eugene Grin</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:<BR>
Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Eugene Grin<BR>
Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt; display: none">



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