SATC Satcon Technology Corp. (MM)

Item 1.01.              Entry into a Definitive Material Agreement.

Satcon Technology Corporation (“Satcon” or the “Company”) and its subsidiaries have entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (the “Bank”) dated as of February 26, 2008 that provides for a senior secured revolving credit facility of up to $10,000,000 (the “Credit Facility”).  The Credit Facility, if not sooner terminated in accordance with its terms, expires on February 25, 2010.

The Credit Facility contains both conditions precedent that must be satisfied prior to any borrowing and affirmative and negative covenants to which SatCon and its subsidiaries must adhere. The Credit Facility imposes restrictions with regards to additional indebtedness, liens, various fundamental changes (including mergers and acquisitions), payments, investments, transactions with affiliates, and other limitations customary in senior secured credit facilities.

Borrowings under the Credit Facility are permitted to be used for working capital and general business requirements.  Interest on outstanding indebtedness under the Credit Facility will accrue at a rate equal to the Prime Rate plus one percent (1.0%) per annum or the LIBOR Rate plus three and three quarters percent (3.75%) per annum.

The obligations of the Company and its subsidiaries under the Loan Agreement are secured under various collateral documents by first priority liens on substantially all of the Company’s and its subsidiaries’ assets.

The Loan Agreement provides that events of default will exist in certain circumstances, including failure to make payment of principal or interest on the loans when required, failure to perform obligations under the Loan Agreement and related documents, defaults in certain other indebtedness and certain other events.  Upon an event of default, the Bank may accelerate maturity of the loans and enforce remedies under the Loan Agreement and related documents.