Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1542

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 4
Chunk 1542
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ible Note (such sum being the “Installment
Amount”); provided, however, if on any Installment Date, no failure to meet the Equity Conditions (as defined in the Convertible
Note) exits pursuant to the Convertible Note, the Company may pay all or a portion of the Installment Amount with shares of its common
stock. The portion of the Installment Amount paid with common stock shall be based on the Installment Conversion Price. “Installment
Conversion Price” means the lower of (i) the Conversion Price (defined below) and (ii) the greater of (x) 92% of the average of
the two (2) lowest daily volume-weighted average price (“VWAP”) (as defined in the Convertible Note) in the ten (10) trading
days immediately prior to each conversion date and (y) $0.75. “Equity Conditions Failure” means that on any day during the
period commencing twenty (20) trading days prior to the applicable Installment Notice Date or Interest Date (each as defined in the Convertible
Note) through the later of the applicable Installment Date or Interest Date and the date on which the applicable shares of Common Stock
are actually delivered to the Holder, the Equity Conditions have not been satisfied (or waived in writing by the Holder).

On October 21, 2024, pursuant to the Purchase
Agreement, the closing of the second tranche of the Convertible Note and Warrant occurred, whereby the Company issued a Warrant to purchase
162,628 shares of Common Stock exercisable at $2.00 per share and the Company received gross proceeds of $535,000, before fees and other
expenses associated with the transaction, accounting for the 12% original issue discount. In conjunction with the transaction, the Company
issued warrants for the purchase of 16,263 shares of common stock with an exercise price of $2.20 per share for their role as placement
agent, which is exercisable at any time on or after April 21, 2024 and will expire on the third anniversary of the effective date of the
registration statement registering the underlying warrant shares. This warrant was adjusted on November 12, 2024 to purchase up to 216,838
shares at an exercise price of $1.50 per share.

63

On November 12, 2024, pursuant to the
Purchase Agreement, the closing of the third tranche of the Convertible Note and