Document:

Exhibit 10.1 

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT
(this “Agreement”) is entered into and effective as of September 9, 2020 (the “Effective Date”)
by and between Ascent Solar Technologies, INC., a Delaware corporation
(the “Company”) and GLOBAL ICHIBAN LIMITED, a British Virgin Islands corporation (hereinafter, the “Holder”).
Each of the Company and the Holder may be referred to individually as a “Party” and collectively as the “Parties”.

 

W I T N E S S E T H

 

WHEREAS, between
November 2017 and October 2018, the Company issued to the Holder [number] separate Promissory Notes in the aggregate original principal
amount totaling $6,492,226.51 (the “Notes”); and

WHEREAS, the
Holder hereby agrees to exchange the Notes (current outstanding principal amount plus accrued interest equal to $6,360,340.80)
issued by the Company in exchange for a Convertible Promissory Note (the “Convertible Note”) in the amount of
$6,400,000.00 to be newly issued by the Company pursuant to this Agreement; and

WHEREAS, the
parties to this Agreement intend that the transactions contemplated by this Agreement are such that the offer and exchange of securities
by the Company under this Agreement will be exempt from registration under applicable United States securities laws as a result
of this exchange offer being undertaken pursuant to Sections 3(a)(9) and 4(a)(2) of the Securities Act of 1933, as amended (the
“Securities Act”).

 

NOW, THEREFORE,
in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt
of which is hereby acknowledged it is hereby agreed as follows:

 

1.                  
Exchange. Upon the terms and conditions set forth in this Agreement, the Company hereby
agrees to issue to the Holder the Convertible Note in the amount of Six Million and Four Hundred Thousand ($6,400,000.00) dollars
in exchange for the Notes and Holder hereby agrees that by this payment that the Notes shall be discharged, cancelled and extinguished
in its entirety. The parties hereby agreement that the existing lien, security agreement and all collateral securing the Company’s
obligations under the Notes shall remain in full force and effect and shall, following the Effective Date, secure the Company’s
obligations under the Convertible Note.

 

2.                  
Representations and Warranties. Each party hereto hereby represents and warrants to
the other party as follows: 

 

(a)       
Authorization. Such party has the full right, power and authority to enter into this Agreement and to perform the terms
and provisions hereof. The execution, delivery and performance of this Agreement by such party have been duly authorized by all
necessary action on the part of such party, and this Agreement constitutes the valid and binding obligation of such party, enforceable
against such party in accordance with its terms.

 

(b)  
No Conflicts. Neither the execution and delivery of this Agreement nor compliance with the terms and provisions hereof
on the part of such party shall breach any statutes or regulations of any governmental authority, domestic or foreign, or shall
conflict with or result in a breach of such party’s organizational document(s) (if applicable) or of any of the terms, conditions
or provisions of any judgment, order, injunction, decree, agreement or instrument to which such party is a party or by

 

 

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which it or its assets are or may be bound,
or constitute a default thereunder or an event which with the giving of notice or passage of time or both would constitute a default
thereunder, or require the consent of any person or entity.

 

(c)  
Consents and Approvals. No consent, waiver, approval, order, permit or authorization of, or declaration or filing
with, or notification to, any person or entity is required on the part of such party in connection with the execution and delivery
of this Agreement or the consummation of the transactions contemplated hereby.

 

3.                  
Representations, Warranties and Covenants of the Holder. 

 

The Holder represents,
warrants and agrees with, the Company that:

 

(a)          This
Agreement has been duly executed and delivered by the Holder and constitutes a valid and binding obligation of the Holder enforceable
in accordance with its terms;

 

(b)        
Holder acknowledges its understanding that this Agreement is intended to be exempt from registration under the Securities Act of
1933, as amended;

 

(c)           Holder
has the financial ability to bear the economic risk of his investment, has adequate means for providing for his current needs and
personal contingencies and has no need for liquidity with respect to his investment in the Company.

 

(d)           Holder
is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Act (17 C.F.R. 230.501(a))
or is not a U.S. Person as defined under Regulation S.

 

(e)           The
Holder is not subject to or obligated under any provisions of any law, regulation, order, judgment or decree which would be breached
or violated by the execution, delivery and performance of this Agreement by the Holder and the consummation of the transactions
contemplated hereby.

 

6.        Miscellaneous.

 

(a)               
Notices. All notices or other communications required or permitted by this Agreement
or by law to be served on or given to either party to this Agreement by the other party shall be in writing and shall be deemed
duly served when personally delivered to the party at an address agreed upon by both parties. 

 

(b)               
Assignment.  This Agreement and all the provisions hereof will be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 

 

(c)               
Governing Law.   The validity, interpretation, construction and performance
of this Agreement shall be governed by the laws of the State of New York, without giving effect to the principles of conflict of
laws. All parties to this Agreement shall hereby submit to the personal and subject matter jurisdiction and venue of the state
or federal courts located in New York, New York and irrevocably waive any trial by jury. If either party commences an action arising
out of this Agreement, the prevailing party shall, in addition to any other damages and costs awarded, be entitled to reasonable
legal fees incurred in connection with the prosecution or defense of such action. 

 

(d)               
Severability.  Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this

 

 

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Agreement is held to be prohibited by or invalid
under applicable law, such provision will be ineffective only to the extent of such provision or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this Agreement.

 

(e)               
Amendment; Waiver.    In the event either party wishes to amend this
Agreement, the Agreement may only be amended or waived in a writing executed by the both parties. 

 

(f)                
Complete Agreement.  This Agreement contains the complete agreement between
the parties hereto and supersedes any prior understandings, agreements or representations by or between the parties, written or
oral, which may have related to the subject matter hereof in any way. 

 

(g)               
Further Assurances. The parties shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents,
as the other parties hereto may reasonably request in order to carry out the intent an accomplish the purposes of this Agreement,
if requested.

 

(h)               
Counterparts. This Agreement may be executed in two or more identical counterparts,
all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail
which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such signature page were an original thereof.

 

 

 

[ Remainder of Page
Intentionally Left Blank; Signature Page to Follow ]

 

 

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IN WITNESS WHEREOF,
the parties hereby have executed this Exchange Agreement as of the date first written above.

 

 

	 	
        Ascent
        Solar Technologies, INC.

         

	 	 	
         

         

         

	 	By:    	/s/ Victor Lee
	 	 	Name: Victor Lee
	 	 	Title: President & CEO
	 	 	 

 

 

 

	 	
        GLOBAL ICHIBAN LIMITED

        BY: ITUS ASSET MANAGEMENT PTE LTD

        ITS: Corporate Director

         
	 
	 	 	
         

         

         
	 
	 	By:    	/s/ B.T. Bhua	 
	 	 	Name: B.T. Chua	 
	 	 	Title: Authorized Signatory	 

 

 

 

4Exhibit 10.2

 

 

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A
GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

	 	 	 
	Principal Amount: $6,400,000.00

	 	Issue Date: September 9, 2020
 

SECURED CONVERTIBLE PROMISSORY
NOTE

FOR VALUE
RECEIVED, ASCENT SOLAR TECHNOLOGIES, INC., a Delaware corporation (hereinafter called “Borrower”), hereby
promises to pay to GLOBAL ICHIBAN LIMITED, a British Virgin Islands corporation, or its assigns (the “Holder”
and together with the Borrower, the “Parties”) or order, without demand, the sum of Six Million and Four Hundred
Thousand Dollars ($6,400,000) (“Principal Amount”), without accrued interest on the unpaid principal balance
hereof and maturing on September 30, 2022 (the “Maturity Date”) together with fees incurred or other amounts
owing hereunder, all as set forth below in this Promissory Note (this “Note” or this “Agreement”),
if not sooner paid. All payments due hereunder (to the extent not converted into common stock, $.0001 par value per share (the
“Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America
and such payments shall be applied to amounts owing under the Note by Holder, in its sole discretion. 

This Note is
issued pursuant to that certain Note Exchange Agreement dated September 9, 2020, as the same may be amended from time to time,
by and between Borrower and Holder (the “Exchange Agreement”). The obligations under this Note will be secured
by a lien on substantially all of the Company’s assets pursuant to the Security Agreement dated November 30, 2017 (the “Security
Agreement”) entered into between the Borrower and Holder. The parties hereto agree that (i) this Note shall be considered
and treated for all purposes as one of the “Notes” as such term is defined in the Security Agreement and also in that
certain Note Purchase and Exchange Agreement dated November 30, 2017, (ii) the obligations under this Note shall be considered
part of the “Obligations” as such terms is defined in the Security Agreement, and (iii) as security for the obligations
under this Note, the Borrower hereby grants to the Holder a security interest in the Collateral (as such terms is defined in the
Security Agreement).   

The following terms shall apply to
this Note:

 

ARTICLE I

GENERAL PROVISIONS

1.1        Payment
Grace Period. The Borrower shall have a five (5) day grace period to pay any monetary amounts due under this Note,
after which grace period a default interest rate of eighteen percent (18%) per annum shall apply from the due date thereof until
the same is paid (“Default Interest”).  

 

1.2        Original
Issue Discount. The Borrower acknowledges that the Principal Amount of this Note exceeds the Purchase Price (as set forth
above) for this Note and that such excess is an original issue discount and shall be fully earned and charged to the Borrower upon
the execution of this Note, and shall be paid to the Holder as part of the outstanding principal balance as set forth in this Note.

 

 

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1.3        Application
of Payments. The Borrower acknowledges that the payments made in connection with this Note shall be applied first to collection
expenses (including all attorneys’ fees and expenses), if any, thereafter to amounts due hereunder other than principal and
interest, thereafter to Interest and finally to Principal Amount all in the Holder’s sole discretion.

 

1.4        Change
of Control. Following the date of this Note, in the event of (i) any transaction or series of related transactions (including
any reorganization, merger or consolidation) by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1)
promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the
Borrower, by contract or otherwise) that results in the transfer of 33% or more of the outstanding voting power of the Borrower,
(ii) the Borrower merges into or consolidates with any other Person, or any Person merges into or consolidates with the Borrower
and, after giving effect to such transaction, the stockholders of the Borrower immediately prior to such transaction own less than
66% of the aggregate voting power of the Borrower or the successor entity of such transaction, or (iii) a sale of all or substantially
all of the assets of the Borrower to another person or entity, this Note shall be automatically due and payable in full, immediately.
The Borrower will give the Holder not less than twenty (20) business days prior written notice of the occurrence of any events
referred to in this Section 1.4. The Holder acknowledges that the capital raising and restructuring transactions that are
occurring on or about the date of this Note shall not be considered a Change of Control.

 

1.5        Miscellaneous.
The Default Interest on this Note shall be calculated on the basis of a 365-day year and the actual number of days elapsed.  Principal
and interest on this Note and other payments in connection with this Note shall be payable at the Holder’s offices as designated
in lawful money of the United States of America in immediately available funds without set-off, deduction or counterclaim. Upon
assignment of the interest of Holder in this Note, Borrower shall instead make its payment pursuant to the assignee’s instructions
upon receipt of written notice thereof.

 

ARTICLE II

OPTIONAL CONVERSION

The Holder, in its sole option, shall
have the right to convert the principal due under this Note into Shares of the Borrower’s Common Stock, $.0001 par value
per share (“Common Stock”) as set forth below.

2.1        Conversion
into the Borrower’s Common Stock.

(a) 
Conversion Right.   At the Holder’s sole discretion, the Holder shall have the right after six
months from the date of the issuance of this Note and then at any time until this Note is fully paid, to convert up to 50% (Fifty
Percent) of the outstanding and unpaid principal portion of this Note, and from and after twelve months from the date of the issuance
of this Note, to convert any of the outstanding and unpaid principal portion of this Note, at the election of the Holder (the date
of giving of such notice of conversion in accordance with Section 2.3(a) being a “Conversion Date”) into
fully paid and nonassessable shares of Common Stock as such stock exists on the date of issuance of this Note, or any shares of
capital stock of Borrower into which such Common Stock shall hereafter be changed or reclassified, at the conversion price as defined
in Section 2.1(b) hereof (the “Conversion Price”), determined as provided herein. However, if the
Borrower does not complete the second tranche of its capital raise by December 31, 2020, which combined with the first tranche,
shall amount to be at least $5,000,000 (Five Million Dollars), then the Holder shall have the right to convert any of the outstanding
and unpaid principal portion of this Note, at the election of the Holder on the following day.

Upon delivery to
the Borrower of a completed notice of conversion, a form of which is annexed hereto as Exhibit A (the “Notice of
Conversion”), Borrower shall issue and deliver to the Holder within three (3) business days after the Conversion
Date (such third day being the “Delivery Date”) that number of shares of Common Stock for the portion of the
Note converted in accordance with the foregoing. At the election of the Holder, the Borrower will deliver accrued but unpaid interest
on the Note, if any, through the Conversion Date directly to the Holder on or before the Delivery Date. The number of shares of

  

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Common Stock to be issued upon each
conversion of this Note shall be determined by dividing that portion of the principal of the Note and interest, if any, to be converted,
by the Conversion Price. To effect conversions hereunder, the Holder shall not be required to physically
surrender this Note to the Borrower unless the entire principal amount of this Note, plus all accrued and unpaid interest thereon,
has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in
an amount equal to the applicable conversion listed on the Notice of Conversion. The Holder and the Borrower shall maintain records
showing the principal amount(s) converted and the date of such conversion(s). In the event of any dispute or discrepancy, the records
of the Holder shall be controlling and determinative in the absence of manifest error.

(b)       Selling
Restrictions. The Holder agrees not to dispose of the Common Stock (in any month) in an amount that exceeds 10% of the
Principal amount of this Note. In addition, daily sales shall not exceed 10% of the average daily trading volume of the Common
Stock over the five trading days preceding any sale. The restrictions of this Section 2.1(b) shall not be applicable in the event
the Borrower does not complete the second tranche of its capital raise by December 31, 2020, which combined with the first tranche,
shall amount to at least $5,000,000 (Five Million Dollars).

(c)  Conversion
Price. Subject to adjustment as provided in Section 2.1(d) hereof, the conversion price per share shall be
equal to the lessor of: (i) a price equal to $0.0010 (“Fixed Conversion Price”), or (ii) eighty percent (80%)
of the lowest closing bid price of the Common Stock during the five (5) trading days immediately preceding the applicable Conversion
Date as quoted by Bloomberg, LP or OTC Link LLC (the “Market Conversion Price”). The Fixed Conversion Price
and the Market Conversion Price are collectively referred to hereinafter as the “Conversion Price.” The Conversion
Price may be adjusted pursuant to the other terms of this Note.

(d) Effect
of Certain Events. The Conversion Price and number and kind of shares or other securities to be issued upon conversion
determined pursuant to Section 2.1(a), shall be subject to adjustment from time to time upon the happening of certain
events while this conversion right remains outstanding, as follows:

A.  Reclassification,
etc. If the Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different
number of securities of any class or classes that may be issued or outstanding, this Note, as to the unpaid principal portion thereof,
shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind of securities as would
have been issuable as the result of such change with respect to the Common Stock immediately prior to such reclassification or
other change.

B.  Stock
Splits, Combinations and Dividends. If the shares of Common Stock are subdivided or combined into a greater or smaller
number of shares of Common Stock, or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price
shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of
combination of shares, in each such case by the ratio which the total number of shares of Common Stock outstanding immediately
after such event bears to the total number of shares of Common Stock outstanding immediately prior to such event.

C. Adjustment
Due to Certain Securities Issuances.   So long as this Note is outstanding, upon any issuance after the Issue
Date by Borrower of any security with a conversion formula (including conversion discount and lookback period) that has actually
gone into effect that is more favorable to the holder of such security than the conversion formula contained in this Note, then
Borrower shall notify Holder of the more favorable conversion formula and such conversion formula, at Holder’s option, shall
become a part of this Note for the benefit of Holder. Additionally, if Borrower fails to notify Holder of any such more favorable
conversion formula, but Holder becomes aware that Borrower has granted such a conversion formula to any third party, Holder may
notify Borrower of such more favorable conversion formula and such formula shall become a part of this Note retroactive to the
date on which such term was

 

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granted to the applicable third party.
For the avoidance of doubt, Borrower may offer higher original issue discounts, interest rates, warrants and warrant terms, anti-dilution
adjustments or other more favorable terms not related to the conversion formula to other investors and Holder shall have no right
to such more favorable term or terms. In addition, this paragraph C shall not apply to any more favorable conversion formula contained
in an issued security unless and until such more favorable conversion formula has actually gone into effect. If a more favorable
conversion formula is contained in a security but does not take effect until
some point in the future (for example upon the occurrence of an event of default or some other future event), Holder shall only
have rights under this paragraph C after such conversion formula actually goes into effect.

(e) Notice
of Adjustments.   Whenever the Conversion Price is adjusted pursuant to Section 2.1(d) above, the
Borrower shall promptly mail to the Holder a notice setting forth the Conversion Price after such adjustment and setting forth
a statement of the facts requiring such adjustment. The Borrower shall, upon the written request at any time of the Holder, furnish
to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect
and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would
be received upon conversion of the Note at the sole expense of the Borrower.

 

(f) Further
Adjustments.   In case at any time or, from time to time, the Borrower shall take any action that
affects the class of securities into which this Note may be converted under Article II, other than an action described herein,
then, unless such action will not have a material adverse effect upon the rights of the Holder, the number of shares of such class
of securities (or other securities) into which this Note is convertible shall be adjusted in such a manner and at such time as
shall be equitable under the circumstances.

 

(g) Voluntary
Adjustments.   The Borrower may at any time during the term of this Note reduce the then current Conversion Price
to any amount and for any period of time deemed appropriate by the Board of Directors of the Borrower.

 

2.2        Authorized
Shares.    The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note. 

 

2.3        Method
of Conversion. This Note may be converted by the Holder in whole or in part as described in Section 2.1(a)
hereof. Upon partial conversion of this Note, a new Note containing the same date and provisions of this Note shall, at the request
of the Holder, be issued by the Borrower to the Holder for the principal balance of this Note and interest which shall not have
been converted or paid.

(a)  Mechanics
of Conversion.   Subject to Section 2.1, this Note may be converted by the Holder in whole or in part
at any time from time to time after the Issue Date, by (A) submitting to the Borrower a copy of an executed Notice of Conversion
in the form attached hereto as Exhibit A (via facsimile, electronic mail (email) or other reasonable means of communication dispatched
on the Conversion Date on or prior to 11:59 p.m., New York, New York time). The Conversion Date specified in the Notice of Conversion
shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 11:59 p.m., New York, New York
time, on such date.

 

(b) Borrower’s
Response.   Upon receipt by the Borrower of a copy of a Notice of Conversion, the Borrower shall as soon as practicable,
but in no event later than two (2) business days after receipt of such Conversion Notice, send, via facsimile or electronic mail
(email) (or otherwise deliver) a confirmation of receipt of such Conversion Notice (the “Conversion Confirmation”)
to the Holder indicating that the Borrower will process such Conversion Notice in accordance with the terms herein. In the event
the Borrower fails to issue its Conversion Confirmation within said two (2) Business Day time period, the Holder shall have the
absolute and irrevocable right and authority to deliver the fully executed Conversion Notice to the Borrower’s transfer agent,
and the Borrower’s transfer agent shall issue the applicable

 

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Conversion Shares to Holder as hereby provided. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire
principal amount of this Note, plus all accrued and unpaid interest thereon and other sums due hereunder, has been so converted.
Conversions hereunder shall have the effect of lowering the outstanding sums owing under this Note in an amount stated in each
applicable conversion notice. The Holder and the Borrower shall maintain records showing the principal and/or interest amount(s)
converted and the date of such conversion(s) in the form attached hereto as Annex I (the “Conversion and Repayment Ledger”).  

 

(c) Delivery
of Common Stock Upon Conversion.   Upon receipt by the Borrower from the Holder of a facsimile transmission (or
other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this
Section 2.3, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
the electronic transfer (as described in Section 2.3 (e) herein below) the Common Stock issuable upon such conversion within
three (3) business days after such receipt (and, solely in the case of conversion of the entire unpaid principal amount hereof,
surrender of this Note) (such fifth business day being hereinafter referred to as the “Deadline”) in accordance
with the terms hereof.

 

(d)  Obligation
of Borrower to Deliver Common Stock Absolute.   Upon submission by the Holder to the Borrower of a Notice of
Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding
principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless
the Borrower defaults on its obligations under this Article II, all rights with respect to the portion of this Note being so converted
shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided,
on such conversion.  If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation
to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any
action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery
of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation
of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Borrower or any violation or alleged violation of law by the Holder or any other
person or entity, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the
Holder in connection with such conversion. 

 

(e)        Delivery
of Common Stock by Electronic Transfer.   In lieu of delivering physical certificates representing the Common
Stock issuable upon conversion, provided the Borrower’s transfer agent is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer (“FAST”) program or any similar program hereafter adopted by DTC performing
substantially the same function, upon request of the Holder and its compliance with the provisions contained in Section 2.1
and in this Section 2.3, the Borrower shall cause its transfer agent to electronically transmit the Common Stock issuable
upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent
Commission (“DWAC”) system.

 

(f)        Failure
to Deliver Common Stock Prior to Deadline.   Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon
conversion of this Note is more than two (2) business days after the Deadline (other than a failure due to the circumstances described
in Section 2.2 above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day
in cash or stock under the terms of this Note, for each day beyond the Deadline that the Borrower fails to deliver such Common
Stock.  Such cash amount shall be paid to Holder by the fifth (5th) day of the month following the month in
which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following
the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon
in accordance with the terms of this Note and such

 

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additional principal amount shall be convertible
into Common Stock in accordance with the terms of this Note.

 

(g)        Rescindment
of Conversion Notice.   Without in any way limiting the Holder’s right to pursue other remedies, including
actual damages and/or equitable relief, the parties agree that if (A) the Borrower fails to respond to Holder with a Conversion
Confirmation pursuant to Section 2.3(b), (B) the Borrower fails to deliver of the Common Stock issuable upon conversion
of this Note is more than two (2) business days after the Deadline, (C) the Holder is unable to procure a legal opinion required
to have the Common Stock issued unrestricted and/or deposited to sell for any reason related to the Borrower’s standing with
the SEC or FINRA, or any action or inaction by the Borrower, (D) the Holder is unable to deposit the Common Stock requested in
the Conversion Notice for any reason related to the Borrower’s standing with the SEC or FINRA, or any action or inaction
by the Borrower, (E) if the Holder is informed by the Borrower that the Borrower does not have enough Common Stock authorized to
satisfy the Conversion Notice, or (F) if OTC Markets, Inc. f/k/a “Pink Sheets” changes the Borrower’s designation
to ‘Limited Information’ (Yield), ‘No Information’ (Stop Sign), ’Caveat Emptor’ (Skull and
Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign) on any day after
the date of the Conversion Notice prior to delivery of such Common Stock, the Holder may, at the Holder’s sole discretion,
rescind or void the Conversion Notice (“Rescindment Notice”) by notifying the Borrower in the same manner that a Conversion
Notice is required to be delivered to the Borrower pursuant to the terms of this Note. If the Holder chooses to provide the Borrower
a timely Rescindment Notice, the Borrower shall pay to the Holder $2,000 per day in cash or stock under the terms of this Note,
for each day that the Borrower was in violation of A-F in this Section 2.3 up until the day the Holder submits a Rescindment
Notice to the Borrower.  Such cash amount shall be paid to Holder by the fifth (5th) day of the month following
the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month
following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall
accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common
Stock in accordance with the terms of this Note.

 

(h)        Transfer
Taxes and Legal Opinions.   Without limitation, the issuance of certificates for shares of the Common Stock on
conversion of this Note shall be made without charge to the Holder hereof for any legal opinion fees, documentary stamp or similar
taxes, or any other issuance or transfer fees of any nature or kind that may be payable in respect of the issue or delivery of
such certificates, any such taxes or fees, if payable, to be paid by the Borrower. The Borrower agrees, at the Borrower’s
sole expense, to provide the Holder with a valid and reasonably accepted legal opinion concerning the issuance of certificates
for shares of the Common Stock on conversion of this Note. If the Holder is required to obtain a legal opinion, the Borrower shall
reimburse the Holder $2,000 which may be deducted from the principal received by the Conversion Notice.

 

2.4       Concerning
the Shares.   The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its
transfer agent shall have been furnished with an opinion of  counsel (which opinion shall be in form, substance and scope
customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule
144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate”
(as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section
2.4. Until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act
or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,

 

    	6  

    	 

    

SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS
OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION
S UNDER SAID ACT.”

 

The legend set forth above
shall be removed and the Borrower shall issue to the Holder a new certificate therefor free of any transfer legend if (i) the Borrower
or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel
in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration
under the Act and the shares are so sold or transferred, (ii) such Holder provides the Borrower or its transfer agent with reasonable
assurances that the Common Stock issuable upon conversion of this Note (to the extent such securities are deemed to have been acquired
on the same date) can be sold pursuant to Rule 144 without volume or manner-of-sale restrictions or current public information
requirements as determined by the counsel to the Borrower as set forth in a written opinion letter to such effect and addressed
to the Transfer Agent and the Holder, or (iii) in the case of the Common Stock issuable upon conversion of this Note, such security
is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant
to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold. The
Borrower acknowledges and agrees that the holding period of the Common Stock issuable upon conversion of this Note under Rule 144(d)
shall be deemed to have commenced as of the Issue Date and, accordingly, a failure to remove legends from Common Stock issuable
upon conversion of this Note shall cause liquidated damages to accrue pursuant to Section 2.3 herein. In any event, and
subject to compliance with applicable securities laws, the Holder may enter into lawful hedging transactions in the course of hedging
the position they assume and the Holder may also enter into lawful short positions or other derivative transactions relating to
the Securities, or interests in the Securities, and deliver the Securities, or interests in the Securities, to close out their
short or other positions or otherwise settle other transactions, or loan or pledge the Securities, or interests in the Securities,
to third parties who in turn may dispose of these Securities.

2.5        Holder’s
Conversion Limitations. The Borrower shall not effect any conversion of this Note, and the Holder shall not have the right
to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice
of Conversion, the Holder (together with the Holder’s Affiliates (such Persons, “Attribution Parties”))
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall
include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is
being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted
principal amount of this Note beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise
or conversion of the unexercised or unconverted portion of any other securities of the Borrower subject to a limitation on conversion
or exercise analogous to the limitation contained herein (including, without limitation, any other Notes or Warrants, if any) beneficially
owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes
of this Section 2.5, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. To the extent that the limitation contained in this Section 2.5 applies, the determination
of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates and Attribution
Parties) and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission
of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation
to other securities owned by the Holder together with any Affiliates or Attribution Parties) and which principal amount of this
Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the
Holder will be deemed to represent to the Borrower each time it delivers a Notice of Conversion that such Notice of Conversion
has not violated the restrictions set forth in this paragraph and the Borrower shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section
2.5, in determining the number of

 

    	7  

    	 

    

outstanding shares of Common Stock,
the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the
Borrower’s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public
announcement by the Borrower, or (iii) a more recent written notice by the Borrower or the Borrower’s transfer agent setting
forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Borrower shall
within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. 
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Borrower, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number
of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon
conversion of this Note held by the Holder. The Holder, upon notice to the Borrower, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2.5, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number
of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion
of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 2.5 shall continue to apply.
Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered
to the Borrower. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 2.5 to correct this paragraph (or any portion hereof) which
may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Note.

 

2.6   Status
as Shareholder.   Upon submission of a Notice of Conversion by the Holder, (i) the shares covered thereby (other
than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the
Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights
as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates
for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because
of a failure by the Borrower to comply with the terms  of this Note.  Notwithstanding the foregoing, if a Holder
has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the
Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain
its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note
with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted
Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not
been converted.  In all cases, the Holder shall retain all of its rights and remedies (including, without limitation,
(i) the right to receive Conversion Default Payments pursuant to Section 2.2 to the extent required thereby for such Conversion
Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions
determined in accordance with Section 5.2) for the Borrower’s failure to convert this Note.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

  3.        
Representations and Warranties of the Borrower.  The Borrower hereby represents and warrants to the Holder
that:

 

        (a)           The
Borrower’s Common Stock is registered under Section 12(g) of the Securities Exchange Act of 1934 (the “Exchange
Act”);

 

    	8  

    	 

    

(b)           The
Borrower is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports
under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the
issuer was required to file such reports);

 

(c)       Regulatory
Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act of 1940, as amended.  Borrower is not engaged as one of its important
activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower
has complied in all material respects with the Federal Fair Labor Standards Act.  Neither Borrower nor any of its Subsidiaries
is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company”
of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower
has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse
effect on its business.  None of Borrower’s or any of its Subsidiaries’ properties or assets has been used
by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing,
treating, or transporting any hazardous substance other than legally.  Borrower and each of its Subsidiaries have obtained
all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental
Authorities that are necessary to continue their respective businesses as currently conducted;

 

(d)         Litigation.  There
is no claim, legal action, suit, arbitration, investigation or other proceeding pending, or to the knowledge of the Borrower,
threatened against or relating to the Borrower or its assets.  Neither the Borrower nor any of its assets are subject
to any outstanding judgment, order, writ, injunction or decree of any Governmental Authority. There is currently no investigation
or review by any Governmental Authority with respect to the Borrower pending or, to the knowledge of the Borrower, threatened,
nor has any Governmental Authority notified the Borrower of its intention to conduct the same;

 

(e)         SEC
Matters.  To the knowledge of the Borrower, neither the Borrower, nor any current or past officer or director
of the Borrower has ever been sanctioned, disciplined, fined, and/or imprisoned for any violations of any securities laws of the
United States or any other jurisdiction; and

 

ARTICLE IV

CERTAIN COVENANTS

 

4.1       Exchange
Listing, Existence.  The Borrower shall make such filings, registrations or qualifications and take all other necessary
action and will use its best efforts to obtain such consents, approvals and authorizations, if any, and satisfy all conditions
that such Exchange may impose on the listing of the Common Stock and shall use its best efforts to obtain such listing on an and
maintain such listing continuously thereafter for so long as all or any of the principal amount of the Note remains outstanding.
The Borrower shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and
privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and in good standing in
each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes
such qualification necessary.

 

4.2       No
Integration.  Neither the Borrower nor any of its affiliates (as defined in Rule 501(b) of Regulation D of the Securities
Act (“Regulation D”)) has, directly or through any agent, sold, offered for sale, solicited offers to buy or
otherwise negotiated in respect of, any security (as defined in the Securities Act), that is or will be integrated with the sale
of the Note in a manner that would require registration of the Note under the Securities Act.

 

4.3       Shell
Company Status.  The Borrower is not now, and has not, prior to the date of this Note, been a “shell company”
as such term is defined in Rule 12b-2 of the Exchange Act.

 

4.4       Public
Information.  The Borrower shall make such filings, registrations or qualifications and take all other necessary action
and will use its best efforts to satisfy all conditions to be in compliance and

 

    	9  

    	 

    

satisfy the current public information requirement
under Rule 144(c), more specifically with Rule 144(c)(1), and otherwise without restriction or limitation pursuant to Rule 144,
and shall use its best efforts to obtain such listing on an and maintain such listing continuously thereafter for so long as all
or any of the principal amount of the Note remains outstanding.

 

4.5        DTCC
Eligibility. The Borrower shall make such filings, registrations or qualifications and take all other necessary action
to remain DTCC-eligible and not have its eligibility revoked or “chilled” by the Depository Trust Company (“DTC”)
or any similar program hereafter adopted performing substantially the same function.

 

4.6       Legal
Action Notice.  The Borrower shall promptly report of any legal actions pending or threatened in writing against
Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually
or in the aggregate, Fifty Thousand Dollars ($50,000) or more.

 

4.7       Change
in Nature of Business.  So long as the Borrower shall have any obligation under this Note, the Borrower shall
not make, or permit any of its Subsidiaries to make, any material change in the nature of its business as described in the Borrower’s
most recent annual report filed on Form 10-K with the SEC. The Borrower shall not modify its corporate structure or purpose.

 

4.8       Statutory
Disqualification.  So long as the Borrower shall have any obligation under this Note, the Borrower nor any of
its officers, directors, controlling persons, employees, representatives, agents, affiliates, or any other person working for or
on behalf of the Borrower is or shall be subject to statutory disqualification as defined in Section 3(a)(39) of the Exchange Act,
as amended or Rule 506(d) under the Act.

 

ARTICLE V

EVENT OF DEFAULT

The occurrence
of any of the following events of default (“Event of Default”) shall, at the option of the Holder hereof, make
all sums of principal and interest then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable,
upon demand, without presentment, or grace period, all of which hereby are expressly waived, except as set forth below:

5.1        Failure
to Pay Principal. The Borrower fails to pay any principal, interest, or other sum due under this Note whether on demand,
at maturity, upon acceleration, Change of Control or otherwise;

 

5.2     Conversion
of Note into Common Stock.   The Borrower fails to issue shares of Common Stock to the Holder (or announces or
threatens that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in
accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (electronically or in certificated
form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as
and when required by this Note or fails to remove any restrictive legend (or to withdraw any stop transfer instructions in respect
thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this
Note as and when required by this Note (or makes any announcement, statement or threat that it does not intend to honor the obligations
described in this paragraph) and any such failure shall continue uncured (or any announcement, statement or threat not to honor
its obligations shall not be rescinded in writing) for ten (10) days after the Borrower shall have been notified thereof in writing
by the Holder.

5.3        Breach
of Covenant. The Borrower or any Subsidiary of Borrower breaches any material covenant or other material term or condition
of this Note in any material respect and such breach, if subject to cure, continues for a period of five (5) business days after
written notice to the Borrower or any such Subsidiary of Borrower from the Holder.

 

    	10  

    	 

    

5.4        Breach
of Representations and Warranties. Any material representation or warranty of the Borrower or any Subsidiary of Borrower
made herein, in any statement or certificate given in writing pursuant hereto or in connection herewith or therewith shall be false
or misleading in any material respect as of the date made and as of the Issue Date.

5.5       Liquidation.
Any dissolution, liquidation or winding up of Borrower or any operating Subsidiary of Borrower or any substantial portion of its
business.

5.6        Cessation
of Operations. Any cessation of operations by Borrower or any operating Subsidiary of Borrower for a period of 30 consecutive
days.

5.7        Maintenance
of Assets. The failure by Borrower or any Subsidiary of Borrower to protect, defend and maintain validity and enforceability
of any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business
(whether now or in the future).

5.8        Receiver
or Trustee. The Borrower or any Subsidiary of Borrower shall make an assignment for the benefit of creditors, or apply
for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such
a receiver or trustee shall otherwise be appointed.

5.9        Judgments.
  Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of
the Borrower or any of its property or other assets for more than Fifty Thousand Dollars $50,000, and shall remain unvacated, unbonded
or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably
withheld;

5.10    Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any
law for the relief of debtors shall be instituted by the Borrower or any Subsidiary of Borrower or any such proceeding shall be
instituted against the Borrower or any Subsidiary of Borrower, which proceedings are not, within sixty (60) days after institution
thereof, discharged or stayed pending appeal.

5.11      Delisting.
An event resulting in the Borrower’s Common Stock no longer being quoted on the Over-The-Counter Bulletin Board (the “OTCBB”);
failure to comply with the requirements for continued quotation on the OTCBB for a period of five (5) consecutive trading days;
or notification from the OTCBB that the Borrower is not in compliance with the conditions for such continued quotation and such
non-compliance continues for five (5) days following such notification. If the Borrower’s Common Stock is quoted by OTC Markets,
Inc. f/k/a “Pink Sheets,” then any event or failure of the Borrower’s Common Stock to be listed as “Pink
Current Information” for trading or quotation for five (5) or more consecutive days.

5.12        DTC
Eligible. An event resulting in the Borrower’s Common Stock no longer being eligible to deposit (either electronically
or by physical certificates, or otherwise) shares into the DTC system; failure to comply with the requirements for continued DTC
eligibility for a period of seven (7) consecutive trading days; or notification from DTC that the Borrower is not in compliance
with the conditions for such continued DTC eligibility and such non-compliance continues for seven (7) days following such notification

5.13        Stop
Trade. An SEC or judicial stop trade order or Principal Market trading suspension with respect to the Borrower’s
Common Stock that lasts for seven (7) or more consecutive trading days.

5.14       Failure
to Deliver Replacement Note. Borrower’s failures to timely deliver, if required, a replacement Note.

5.15        Financial
Statement Restatement. A restatement of any financial statements filed by the Borrower with the Securities and Exchange
Commission for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding,
if the result of such restatement would, by comparison to the unrestated financial statements, have constituted a Material Adverse
Effect.

  

    	11  

    	 

    

5.16        Reverse
Splits. The Borrower effectuates a reverse split of its Common Stock without five (5) business days prior written
notice to the Holder.

 

5.17        Misrepresentations.
Borrower or any representative acting for Borrower makes any representation, warranty, or other statement now or later in this
Note or in any writing delivered to the Holder or to induce the Holder to enter this Note, and such representation, warranty, or
other statement is incorrect or contains any untrue statement of a material fact, or omits or will omit to state a material fact
necessary to make the statements or facts contained herein or therein not misleading in any material respect in light of the circumstances
under which they were made.

 

5.18        Other
Note Default. A default by the Borrower or the occurrence of an Event of Default under any Other Note issued by the Borrower.

 

5.19        Failure
to Timely File Borrower’s Financial Reports. The Borrower fails to timely file all reporting required under the Securities
Exchange Act of 1934, as amended, filed with the Securities and Exchange Commission or if, the Borrower’s Common Stock is
quoted by OTC Markets, Inc. f/k/a “Pink Sheets” then, the Borrower’s failure to timely file all reports required
to be filed by it with OTC Markets, Inc. f/k/a “Pink Sheets” whereby the Borrower either (i) fails to be reported as
“Pink Current Information” designated company, or (ii) is reported as “No Inside.”

 

5.20     
Default Under the Note.   An Event of Default has occurred and is continuing under this Note, then, upon the
occurrence and during the continuation of any Event of Default specified in Section 5.1, 5.2, 5.3, 5.4, 5.5, 5.6, 5.7, 5.9, 5.10,
5.11, 5.12, 5.13, 5.14, 5.15, 5.16, 5.17, 5.18 or 5.19, at the option of the Holder exercisable through the delivery of written
notice to the Borrower by such Holder (the “Default Notice”), and upon the occurrence of an Event of Default
specified in Section 5.8, the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to the sum of (w) the then outstanding principal amount of this Note plus
(x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory
Payment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus
(z) any other amounts owed to the Holder pursuant to this Note (the then outstanding principal amount of this Note to the date
of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default
Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment
or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, any and all legal
fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or
in equity. If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount
is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and
to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue,
in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount then in effect.

 

ARTICLE VI

MISCELLANEOUS

6.1
       Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder
hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver,
election, or acquiescence thereof, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other right, power or privilege. No waiver hereunder shall
be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for
which it is given. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available provided for by law, or in equity.

6.2        Demand
Waiver. Borrower hereby waives: (i) demand, notice of default, delinquency or dishonor, notice of payment and nonpayment,
notice of any default, notice of acceleration, nonpayment at

 

    	12  

    	 

    

maturity, notice of costs, expenses
and losses and interest thereon, notice of late charges; (ii) all defenses and pleas on the grounds of any release, compromise,
settlement, extension, or extensions of the time of payment or any due date under this Note, in whole or in part, whether before
or after maturity and with or without notice; and (iii) diligence in taking any action to collect any sums owing under this Note
or in proceeding against any the rights and interests in and to properties securing payment of this Note such as, but not limited
to, the renewal of accounts, documents, instruments, chattel paper, and guarantees held by the Holder on which Borrower is liable.

6.3        Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified,
return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, electronic mail (email), or facsimile, addressed as set forth below or to such other address as such
party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given
hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated
by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day following such delivery (if delivered other than
on a business day during normal business hours where such notice is to be received) or (b) on the first business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

(i) if
to Borrower, to:

Ascent Solar Technologies,
Inc.

12300 N. Grant
Street

Thornton, CO 80241

Attn: Victor Lee,
CEO

Email: victor.lee@ascentsolar.com

With
a copy to:

James
H. Carroll, Esq.

Carroll
Legal LLC

233
Mckinley Park Lane

Louisville,
CO 80027

Email:
jcarroll@carroll.legal

(ii) if
to the Holder, to:

Global Ichiban
Limited

Attn: Investment
Manager

Email: btchua@itusam.com

6.4        Amendment
Provision. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented in writing, then as so amended or supplemented.

6.5        Assignability.
The Holder, without consent from or notice to anyone, may at any time assign the Holder’s rights in this Note, the Borrower’s
obligations under this Note, or any part thereof. This Note shall be binding upon the Borrower and their respective legal
representatives, heirs and its successors, and shall inure to the benefit of the Holder and its successors, assigns, heirs, administrators
and transferees. The Borrower may not assign its obligations under this Note.

6.6        Cost
of Collection. Borrower shall pay to the Holder, on demand and if demanded, prior to any conclusion of any action related
hereto, the amount of any and all expenses, including, without limitation, attorneys’ fees, appellate attorney’s fees,
legal costs and expenses, as well as collection agency fees and costs,

 

    	13  

    	 

    

any of which the Holder, whether
or not the Holder agrees to dismiss an action upon payment of sums allegedly due, obtains substantially the relief sought or may
incur in connection with (a) enforcement or collection of this Note following an Event of Default; (b) exercise or enforcement
of any the rights, remedies or powers of the Holder hereunder or with respect to any or all of the obligations under this Note
upon breach or threatened breach; or (c) failure by Borrower to perform and observe any agreements of Borrower contained herein.

6.7        Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of New York without regard to
conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction. Any action brought
by either party against the other concerning the transactions contemplated by this Agreement must be brought only in the civil
or state courts of New York or in the federal courts located in the State and county of New York. Both parties and the individual
signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such courts. The prevailing party shall
be entitled to recover from the other party its reasonable attorney’s fees and costs at both the trial and appellate level.
In the event that any provision of this Note 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 Note in any other jurisdiction. Nothing contained herein shall be deemed or
operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to
collect on the Borrower’s obligations to Holder, to realize on any collateral or any other security for such obligations,
or to enforce a judgment or other decision in favor of the Holder. This Note shall be deemed an unconditional obligation of
Borrower for the payment of money and, without limitation to any other remedies of Holder, may be enforced against Borrower by
summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar rule or statute in
the jurisdiction where enforcement is sought. For purposes of such rule or statute, any other document or agreement to which Holder
and Borrower are parties or which Borrower delivered to Holder, which may be convenient or necessary to determine Holder’s
rights hereunder or Borrower’s obligations to Holder are deemed a part of this Note, whether or not such other document or
agreement was delivered together herewith or was executed apart from this Note.

 

6.8        Waiver
of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND THE HOLDER EACH HEREBY KNOWINGLY, VOLUNTARILY,
INTENTIONALLY AND IRREVOCABLY WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS
AGREEMENT OR ANY CONTEMPLATED TRANSACTION, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF OR BETWEEN ANY PARTY HERETO, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THE BORROWER AGREES AND
CONSENTS TO THE GRANTING TO HOLDER OF RELIEF FROM ANY STAY ORDER WHICH MIGHT BE ENTERED BY ANY COURT AGAINST HOLDER AND TO ASSIST
HOLDER IN OBTAINING SUCH RELIEF.  THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.  EACH
PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. THE BORROWER’S REASONABLE RELIANCE UPON SUCH INDUCEMENT IS HEREBY ACKNOWLEDGED.

 

6.9      Certain
Amounts.   Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding
principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest
on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this
Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty
and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the
sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant
to this Note.  The Borrower and the Holder hereby agree that such amount of

 

    	14  

    	 

    

stipulated damages is not plainly disproportionate
to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares
of Common Stock. To the extent it may lawfully do so, the Borrower hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now
or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by the Holder in order
to enforce any right or remedy under this Note.

 

6.10       Usury
Savings Clause.   Borrower and Holder intend to contract in compliance with all state and federal usury laws
governing the loan evidenced by this Note. Holder and Borrower agree that none of the terms of this Note shall be construed to
require payment of interest at a rate in excess of the maximum interest rate allowed by any applicable state, federal or foreign
usury laws. If Holder receives sums which constitute interest that would otherwise increase the effective interest rate on this
Note to a rate in excess of that permitted by any applicable law, then all such sums constituting interest in excess of the maximum
lawful rate shall at Holder’s option either be credited to the payment of principal or returned to Borrower.

 

Notwithstanding any provision
in this Note to the contrary, the total liability for payments of interest and payments in the nature of interest, including, without
limitation, all charges, fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit
imposed by the usury laws of the jurisdiction governing this Note or any other applicable law.  In the event the total
liability of payments of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions
or other sums which may at any time be deemed to be interest, shall, for any reason whatsoever, result in an effective rate of
interest, which for any month or other interest payment period exceeds the limit imposed by the usury laws of the jurisdiction
governing this Note, all sums in excess of those lawfully collectible as interest for the period in question shall, without further
agreement or notice by, between, or to any party hereto, be applied to the reduction of the outstanding principal balance due hereunder
immediately upon receipt of such sums by the Holder hereof, with the same force and effect as though the Borrower had specifically
designated such excess sums to be so applied to the reduction of the principal balance then outstanding, and the Holder hereof
had agreed to accept such sums as a penalty-free payment of principal; provided, however, that the Holder may, at any time and
from time to time, elect, by notice in writing to the Borrower, to waive, reduce, or limit the collection of any sums in excess
of those lawfully collectible as interest, rather than accept such sums as a prepayment of the principal balance then outstanding.  It
is the intention of the parties that the Borrower does not intend or expect to pay, nor does the Holder intend or expect to charge
or collect any interest under this Note greater than the highest non-usurious rate of interest which may be charged under applicable
law. 

 

6.11        Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum rate permitted by applicable law. In the event that the rate of interest required to be paid or other
charges hereunder exceed the maximum rate permitted by applicable law, any payments in excess of such maximum rate shall be credited
against amounts owed by the Borrower to the Holder and thus refunded to the Borrower, the manner of handling such excess to be
at the Holder’s election.

 

6.12       Further
Assurances.  At any time or from time to time after the date hereof, the Parties agree to cooperate with each other
and, at the request of any other Party, to execute and deliver any further instruments or documents and to take all such further
action as the other Party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated
hereby and to otherwise carry out the intent of the Parties hereunder.

 

6.13      Remedies.
  The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder,
by vitiating the intent and purpose of the transaction contemplated hereby.  Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,

 

    	15  

    	 

    

preventing or curing any breach of this Note
and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond
or other security being required.

 

6.14       No
Impairment. The Borrower will not, by amendment of its Articles of Incorporation or By-Laws or other organizational document,
or through reorganization, consolidation, merger, dissolution, issue or sale of securities, sale of assets or any other voluntary
action, willfully avoid or seek to avoid the observance or performance of any of the terms of this Note, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate
in order to protect the rights of the Holder under this Note against impairment or dilution.

 

6.15       Substitute
Note or Notes. Upon (i) receipt by the Borrower of evidence reasonably satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation hereof, and, in the case of loss, theft or destruction, of any indemnification undertaking by
the Holder to the Borrower in customary form, or (ii) the request of the Holder of this Note upon surrender hereof, the Borrower
shall execute and deliver in lieu hereof, a new Note or Notes, payable to the order of the Holder or such persons as the Holder
may request and in a principal amount equal to the unpaid principal amount hereof, which shall be dated and bear interest from
the date to which interest has theretofore been paid hereon. Each such Note shall in all other respects be in the same form and
be treated the same as this Note and all references herein to this Note shall apply to each such Note. This Note is exchangeable,
upon the surrender hereof by the Holder at the principal office of the Borrower, for a new Note or Notes representing in the aggregate
the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding Principal as is
designated by the Holder at the time of such surrender.

 

6.16       Absolute
Obligation.  No provision of this Note shall alter or impair the obligation of the Borrower, which is absolute and
unconditional, to pay the principal of, accrued interest, Default Amounts, or damages as applicable, on this Note at the time,
place, and rate, and in the coin or currency, herein prescribed. This Note is a direct, unconditional and secured debt obligation
of the Borrower.

 

6.17       Relationship.
 The relationship of the parties to this Note is determined solely by the provisions of this Note. The parties do not
intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different
from those of parties to an arm’s-length contract.

 

6.18       Entire
Agreement.  This Note and any instruments and agreements to be executed pursuant to this Note, sets forth the entire
agreement and understanding of the Parties with respect to its subject matter of this Note and supersedes, merges and replaces
all prior and contemporaneous understandings, discussions and negotiations, oral or written, regarding the same subject matter
which shall remain in full force and effect and may not be altered or modified, except in writing and signed by the party to be
charged thereby, and supersedes any and all previous discussions between the parties relating to the subject matter thereof.

 

6.19       Counterparts.
 This Note may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when this Note has been signed by the Borrower and delivered to any other party, it being
understood that all parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile
transmission, by email in “portable document format” (“.pdf”), electronic signature or other similar
electronic means intended to preserve the original graphic and pictorial appearance of this Note, such signature shall have the
same effect as physical delivery of the paper document bearing original signature and create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile
signature were an original thereof.

 

6.20       Counsel.
The parties expressly acknowledge that each has been advised to seek separate counsel for advice in this matter and has been given
a reasonable opportunity to do so.

 

    	16  

    	 

    

6.21       Headings.
The headings in this Note are for convenience of reference only and shall not affect the interpretation of this Note.

 

 

 

[ Signatures on Following
Pages ]

 

 

 

    	17  

    	 

    

IN WITNESS WHEREOF, Borrower
has caused this Promissory Note to be signed in its name by an authorized officer as of the first date written above.

 

 

ASCENT SOLAR TECHNOLOGIES, INC.

 

 

By: /s/ Victor Lee

Name: Victor Lee

Title: CEO

 

 

 

    	18  

    	 

    

ASCENT SOLAR TECHNOLOGIES, INC.

 

NOTICE OF CONVERSION 

(To be Executed by the Registered Holder

in order to Convert the Note)

 

 

The undersigned hereby irrevocably elects to convert the sum
of: $_________________ principal amount, plus $___________ interest, plus $___________ default sums, and plus
___________ damages shares for a total of $______________ due under the terms of the Note (defined below) into shares of common
stock, par value $.0001 per share (“Common Stock”), of ASCENT SOLAR TECHNOLOGIES, INC. a Delaware corporation
(the “Borrower”) according to the conditions of the Secured Convertible Promissory Note of the Borrower dated
as of September ___, 2020 (the “Note”), as of the date written below.  If securities are to
be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates.  No fee will be charged to the Holder for any conversion, except
for transfer taxes, if any. A copy of each Note is attached hereto (or evidence of loss, theft or destruction thereof).

 

The Borrower shall electronically transmit the Common Stock issuable
pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal
Agent Commission system (“DWAC Transfer”).

 

Name of DTC Prime Broker: __________________________________ DTC#:
_________

Account Number: ____________________ Name: ________________________________

 

In lieu of receiving shares of Common Stock issuable pursuant to
this Notice of Conversion by way of a DWAC Transfer, the undersigned hereby requests that the Borrower issue a certificate or certificates
for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto)
in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

 

Name: _____________________________________________________________

Address: ___________________________________________________________

 

The undersigned represents and warrants that all offers and sales
by the undersigned of the securities issuable to the undersigned upon conversion of the Note shall be made pursuant to registration
of the securities under the Securities Act of 1933, as amended (the “Act”), or pursuant to an exemption from
registration under the Act.

 

Date of Conversion:                                              .

Conversion Price:                                                 .

Applicable Conversion Discount:                            .

Conversion Shares:                                               .

Default Sums/Damages Shares:                              .

Total number of Shares of Common Stock to be Issued Pursuant

To the terms of the Notes:                                    .

 

Conversion Shares to be Registered to the Following:

 

Name:                                                                 .

Address:                                                              .

Address:                                                              .

 

 

GLOBAL ICHIBAN LIMITED

By:

Its:

 

By: ______________________________

Name: ____________________________

Title: _____________________________

 

The Borrower hereby acknowledges this Notice of Conversion and agrees
to direct the Borrower’s Transfer Agent to issue the above indicated number of shares of Common Stock.

 

Ascent Solar Technologies,
Inc.

 

By: ______________________________

Name: ____________________________

Title: _____________________________

 

 

19

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