Document:

May
26, 2020

Via
Electronic Mail

 

Generex
Biotechnology Corporation

10102
USA Today Way

Miramar,
FL 33025

Attention:
Joseph Moscato, Chairman & CEO

 

Re:Retainer
for Legal Representation

 

Dear
Mr. Moscato:

 

Reference
is made to our letters dated December 5, 2019 (the “December 2019 Retainer”), pursuant to which you engaged
Carmel, Milazzo & Feil LLP (the “Firm”) to represent your subsidiary, NuGenerex Immuno-Oncology, Inc, in
connection with, among other things, the preparation and filing of an S-1 Registration Statement (the “NuGenerex S-1
Registration Statement”) and March 18, 2020 (the “March 2020 Retainer” and together with the December
2019 Retainer, the “Retainers”), pursuant to which you engaged us to represent you in connection with, among
other things, the preparation and filing of a registration statement on Form S-1 (the “Generex S-1 Registration Statement”).
This letter consolidates, revises and supersedes the terms of our engagement under the Retainers and provides for the payment
of our fees for legal work we have already performed under the Retainers and for legal work to be performed under this letter.

 

This
letter sets forth our understanding whereby Generex Biotechnology Corporation (“Generex” or the “Company”
or “you”) has engaged Carmel, Milazzo & Feil LLP (the “Firm”) to represent (i) the Company
in connection with (a) the preparation and filing with the Securities and Exchange Commission (the “SEC”) of
a registration statement on Form S-1 (the “Generex S-1 Registration Statement”) for the registration of preferred
stock and warrants; (b) the preparation of transaction documents and the legal work required to authorize preferred stock (the
“Financing”); and (c) the preparation and filing of an application to quote its securities on a national exchange
(all of the matters described in clause (i), the “Generex Matters”) and (ii) NuGenerex Immuno-Oncology, Inc.,
a subsidiary of the Company (“NGIO”) , in connection with (a) the preparation and filing of a registration
statement on Form 10 (the “Form 10 Registration Statement”) for the registration of its common stock under
Section 12(g) of the Securities Act of 1933; (b) the preparation and filing with the SEC of a registration statement on Form S-1
(the “NGIO S-1 Registration Statement”) for the registration of common stock; and (c) the preparation and filing
of an application to quote its securities on a national exchange (all of the matters described in clause (ii), the “NGIO
Matters” and together with the Generex Matters, the “Matters”).

 

We
will accept payment for the legal services previously performed underthe Retainers for a flat fee of 120,000 shares of the
Company’s common stock (the “Shares”) with piggyback registration rights for all of the Shares in any registration
statement filed by the Company that is declared effective after the date hereof and $50,000 in cash. With respect to our fees
for work that has not yet been performed on the Generex Matters, we will bill you at our hourly rates for all work performed after
the filing of the Generex S-1 Registration Statement. With respect to our fees for work that has not yet been performed on the
NGIO Matters, we will bill you at our hourly rates for all work performed after the filing of Amendment No. 1 to the Form 10 Registration
Statement. The fees shall be payable as follows: (a) As payment for work previously performed by the Firm under the Retainers,
the Company shall (i) issue the Shares to the Firm upon the execution of this letter or as soon as practicable thereafter and
(ii) pay the Firm $50,000 in cash upon the earlier of (x) the closing of the Company’s or NGIO’s next financing, whichever
is first and without regard to what firm represents the Company or NGIO in such financing or (y) six months from the date of this
letter and (b) As payment for legal work on the Matters which has not yet been performed, (i) at the closing of the financing
related to the NGIO S-1 Registration Statement, a cash amount equal to any unpaid hours billed at our hourly rates relating to
all NGIO Matters that occurred after the filing of Amendment No.1 to the Form 10 Registration Statement and all Generex Matters
that occurred after the initial filing of the Generex S-1 Registration Statement and (ii) at the closing of the financing related
to the Generex S-1 Registration Statement, a cash amount equal to any unpaid hours billed at our hourly rates relating to all
NGIO Matters that occurred after the filing of Amendment No.1 to the Form 10 Registration Statement and all Generex Matters that
occurred after the initial filing of the Generex S-1 Registration Statement. We reserve the right to increase such estimated fee
cap should we encounter any unexpected complications, delays or hurdles or should the scope of our representation be increased.
Such additional fees will be discussed with the Company before they are incurred.

 

At
your request, we may also undertake to represent the Company with respect to other ongoing and new matters ("New Matters"),
including financings, acquisitions or general corporate matters. We will discuss such New Matters with you before work is commenced
by us. Such New Matters will be billed to you at either our hourly rate or at a fixed project rate or monthly rate to be agreed
to in advance of such work being performed.

 

For
any New Matters which are billed on the basis of hourly fees, we shall keep records of the time we expend on your case and will
bill you for this time on a monthly basis. The Company will receive a monthly statement, detailing the services performed. We
assign hourly rates for each member of our legal staff based upon years of experience, specialization and level of professional
attainment. The rates per hour of those persons who are expected to work on your matters are $175.00 per hour for paralegals,
$400.00 to $500.00 per hour for associates and $500.00 to $600.00 for partners. All charges will be made in units of one-tenth
(1/10) of an hour, with a minimum charge of one-tenth of an hour and will be applied to every activity performed on the Company’s
behalf.

 

We
will consult with the Company on all major decisions and will attempt to keep the Company fully informed of the status of the
preparation of documents, if any, as well as our recommended strategies. The Company should feel free to call at any time with
any questions or wish to discuss any aspect of the Matter.

 

The
fees set forth above do not include out-of-pocket and incidental costs and expenses such, filing fees, travel, computer research
fees, messenger charges, court costs and the like. The Company agrees to pay all expenses advanced by the firm on a monthly basis
and to provide expenses in advance to the extent requested by the Firm.

 

In
order to avoid potential restrictions on the Firm’s representation of clientele, we routinely request from clients a waiver,
in advance, that the Firm will not be disqualified from representing interests that may become adverse to the Company with regard
to matters that are not substantially related to the matter for which we have been engaged by the Company. This waiver is not
intended to and does not permit the Firm to represent any interests that may be directly adverse to the Company that involve matters
substantially related to the services for which the Company retained the Firm. Such waiver does not result in any waiver of the
protections that are afforded to the Company with regard to attorney-client communications with the Firm. Such communications
will remain confidential and will not be disclosed to any third party without consent. Accordingly, you agree that you will not
object to the Firm’s representation of other clients on the basis of your retention of the Firm, unless such other representation
would involve the Firm representing an interest that is directly adverse to you or a matter substantially related to the Matter,
subject to the exception as noted above.

 

The
nature of the Firm’s practice is such that the Firm may from time to time represent one client in a matter while also representing
that client’s adversary in another unrelated matter. Such concurrent representation is undertaken only if it is the Firm’s
professional judgment that the Firm can engage in such representations in an impartial manner and without any adverse effect in
the respective representations of either client. Accordingly, you agree that you do not consider any such concurrent representation
in unrelated matters to be inappropriate and consents to any such present or future concurrent representations. In certain circumstances,
such as where a company’s founders or officers are not individually represented by counsel, we may also ask for informed
consents and waivers by such persons of the opportunity to engage separate counsel on their behalf. In such cases, we encourage
the founders and officers to discuss such consents and waiver with counsel of their choice, as is their right, including the authorized
Company officer who executes this engagement letter for Company.

 

This
Agreement shall be governed by the laws of the State of New York and venue for any controversy or claim arising out of or relating
to this Agreement shall be in New York County, New York. In the event that a controversy or claim arises out of or relates to
this Agreement, then it is agreed understood that same shall be determined in accordance with the laws of the State of New York
and by a court of competent jurisdiction in the County of New York. If there is a fee dispute, you may be entitled to have the
dispute resolved through arbitration, pursuant to Part 137 of the Rules of the Chief Administrator of the Courts of the State
of New York.

 

    	 	1	 

     

    

 

You
acknowledge receipt of the Statement of Client’s Rights and the Statement of Client’s Responsibilities, which we have
reviewed with you. In addition, the individual(s) signing this Agreement on behalf of the Company personally guarantees payment
of all fees and costs to the Firm.

 

If
this arrangement meets with your approval, please sign the enclosed copy of this letter and return it to us. Naturally, if you
have any questions, please feel free to contact us at any time.

 

Very
truly yours,

 

CARMEL,
MILAZZO & FEIL LLP

 

 

/s/
Jeffrey Wofford

 

Agreed
and Accepted this

26th
day of May 2020

 

GENEREX
BIOTECHNOLGY CORPORATION

 

 

By:
/s/ Joseph Moscato

Joseph Moscato

Chief Executive Officer

 

Wiring
Instructions:

Signature
Bank

565
Fifth Avenue

New
York, New York 10017

 

Routing
#: 026013576

Account
#: 1502765147

Account
Title: Carmel, Milazzo & Feil LLP

 

    	 	2	 

     

    

Statement
of Client’s Responsibilities

 

1.
The client is expected to treat the lawyer and the lawyer’s staff with courtesy and

consideration.

 

2.
The client’s relationship with the lawyer should be one of complete candor and the client

should
apprise the lawyer of all facts or circumstances of the matter being handled by the

lawyer
even if the client believes that those facts may be detrimental to the client’s cause

or
unflattering to the client.

 

3.
The client must honor the fee arrangement as agreed to with the lawyer to the extent

required
by law.

 

4.
All bills tendered to the client for services rendered pursuant to the agreed upon

arrangement
regarding fees and expenses should be paid when due.

 

5.
A client who discharges the attorney and terminates the attorney-client relationship must

nevertheless
honor financial commitments under the agreed to arrangement regarding

fees
and expenses to the extent required by law.

 

6.
Although the client should expect that his or her letters, telephone calls, emails, faxes,

and
other communications to the lawyer will be answered within a reasonable time, the

client
should recognize that the lawyer has other clients who may be equally deserving of

the
lawyer’s time and attention.

 

7.
The client should maintain contact with the lawyer, promptly notify the lawyer of any

change
in telephone number, address, email, or other electronic contact information, and

respond
promptly to a request by the lawyer for information and cooperation.

 

8.
The client must realize that the lawyer is required to respect only legitimate objectives of

the
client and that the lawyer will not advocate or propose positions that are

unprofessional
or contrary to law or the New York Rules of Professional Conduct.

 

9.
The lawyer may decline to accept a matter if the lawyer has previous personal or

professional
commitments that will prohibit the lawyer from devoting adequate time to

representing
the client competently and diligently.

 

10.
A lawyer is under no obligation to accept a client if the lawyer determines that the cause

of
the client is without merit, a conflict of interest would exist or a suitable working

relationship
with the client is not likely.

 

    	 	3	 

     

    

 

Statement
of Client’s Rights

 

1.
You are entitled to be treated with courtesy and consideration at all times by your lawyer

and
the other lawyers and non-lawyer personnel in your lawyer’s office.

 

2.
You are entitled to have your attorney handle your legal matter competently and

diligently,
in accordance with the highest standards of the profession. If you are not

satisfied
with how your matter is being handled, you have the right to discharge your

attorney
and terminate the attorney-client relationship at any time. (Court approval may

be
required in some matters, and your attorney may have a claim against you for the

value
of services rendered to you up to the point of discharge.)

 

3.
You are entitled to your lawyer's independent professional judgment and undivided

loyalty
uncompromised by conflicts of interest.

 

4.
You are entitled to be charged reasonable fees and expenses and to have your lawyer

explain
before or within a reasonable time after commencement of the representation how

the
fees and expenses will be computed and the manner and frequency of billing. You are

entitled
to request and receive a written itemized bill from your attorney at reasonable

intervals.
You may refuse to enter into any arrangement for fees and expenses that you

find
unsatisfactory. In the event of a fee dispute, you may have the right to seek

arbitration;
your attorney will provide you with the necessary information regarding

arbitration
in the event of a fee dispute, or upon your request.

 

5.
You are entitled to have your questions and concerns addressed promptly and to receive a

prompt
reply to your letters, telephone calls, emails, faxes, and other communications.

 

6.
You are entitled to be kept reasonably informed as to the status of your matter and are

entitled
to have your attorney promptly comply with your reasonable requests for

information,
including your requests for copies of papers relevant to the matter. You are

entitled
to sufficient information to allow you to participate meaningfully in the

development
of your matter and make informed decisions regarding the representation.

 

7.
You are entitled to have your legitimate objectives respected by your attorney. In

particular,
the decision of whether to settle your matter is yours and not your lawyer’s.

(Court
approval of a settlement is required in some matters.)

 

8.
You have the right to privacy in your communications with your lawyer and to have your

confidential
information preserved by your lawyer to the extent required by law.

 

9.
You are entitled to have your attorney conduct himself or herself ethically in accordance

with
the New York Rules of Professional Conduct.

 

10.
You may not be refused representation on the basis of race, creed, color, religion, sex,

sexual
orientation, age, national origin or disability.

    	 	4Exhibit 10.1

 

 

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: $250,000.00	Issue Date: June 9, 2020

 

CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED,
ASCENT SOLAR TECHNOLOGIES, INC., a Delaware corporation (hereinafter called “Borrower”), hereby promises
to pay to PENUMBRA SOLAR, INC., a Delaware corporation, or its assigns (the “Holder” and together with
the Borrower, the “Parties”), without demand, the sum of Two Hundred Fifty Thousand Dollars ($250,000) (“Principal
Amount”), and to pay interest on the unpaid principal balance hereof at the rate of six percent (6%) (the “Interest
Rate”) per annum, accruing thereon from date of funding and maturing on June 9, 2021 (the “Maturity Date”),
together with all accrued and unpaid interest thereon, 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 shares of the Borrower’s 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 free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

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        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.

 

1.3       Change
of Control. 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.

 

    	1 

    	 

    

 

 

1.4       Use
of Proceeds. Borrower agrees that the proceeds of this Note shall be used for the purposes previously agreed to by the
parties.

 

1.5       No
Prepayment. Other than through conversions of the Note pursuant to Article II below, this Note may not be prepaid by the
Borrower.

 

1.6       Miscellaneous.
The 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 from and after the date of the issuance of
this Note and then at any time until this Note is fully paid, to convert any 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.

 

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 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 amount 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)       Conversion
Price. Subject to adjustment as provided in Section 2.1(c) hereof, the conversion price per share shall be $0.0001
(“Fixed Conversion Price”). The Conversion Price may be adjusted pursuant to the other terms of this Note.

 

    	2 

    	 

    

 

(c)       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.

 

(d)       Notice
of Adjustments. Whenever the Conversion Price is adjusted pursuant to Section 2.1(c) 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.

 

(e)       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.

 

(f)       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 (to the extent possible under the Borrower’s current Certificate of Incorporation)
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.

 

    	3 

    	 

    

 

 

(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 three (3) 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 three (3) 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 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.

 

    	4 

    	 

    

 

 

(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 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(h) 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:

 

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“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,
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.

 

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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 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. 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.

 

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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

 

3.1       Representations
and Warranties of the Borrower. The Borrower hereby represents and warrants to the Holder (except as disclosed in the Borrower’s
public securities law filings) that:

 

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

 

(b)       The
Borrower is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act. The Borrower has not 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;

 

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(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

 

(f)       No
“Bad Actor” Disqualification. The Borrower has exercised reasonable care to determine whether any Company Covered
Person (as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through
(viii), as modified by Rules 506(d)(2) and (d)(3), under the Securities Act of 1933, as amended (the “Securities Act”)
(“Disqualification Events”). To the Borrower’s knowledge, no Company Covered Person is subject to a Disqualification
Event. The Borrower has complied, to the extent required, with any disclosure obligations under Rule 506(e) under the Securities
Act. For purposes of this Note, “Company Covered Persons” are those persons specified in Rule 506(d)(1) under
the Securities Act; provided, however, that Company Covered Persons do not include (a) any Holder, or (b) any person or entity
that is deemed to be an affiliated issuer of the Borrower solely as a result of the relationship between the Borrower and any Holder.

 

(g)       Offering.
Assuming the accuracy of the representations and warranties of the Holder contained in Section 3.2 below, the offer, issue, and
sale of this Note and the underlying conversion securities (collectively, the “Securities”) are and will be
exempt from the registration and prospectus delivery requirements of the Securities Act, and have been registered or qualified
(or are exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable
state securities laws.

 

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

 

(a)       Purchase
for Own Account. The Holder is acquiring the Securities solely for the Holder’s own account and beneficial interest
for investment and not for sale or with a view to distribution of the Securities or any part thereof, has no present intention
of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same,
and does not presently have reason to anticipate a change in such intention.

 

(b)       Information
and Sophistication. Without lessening or obviating the representations and warranties of the Borrower set forth in Section
3.1 above, the Holder hereby: (i) acknowledges that the Holder has received all the information the Holder has requested from the
Borrower and the Holder considers necessary or appropriate for deciding whether to acquire the Securities, (ii) represents that
the Holder has had an opportunity to ask questions and receive answers from the Borrower regarding the terms and conditions of
the offering of the Securities and to obtain any additional information necessary to verify the accuracy of the information given
the Holder and (iii) further represents that the Holder has such knowledge and experience in financial and business matters that
the Holder is capable of evaluating the merits and risk of this investment.

 

(c)       Ability
to Bear Economic Risk. The Holder acknowledges that investment in the Securities involves a high degree of risk, and represents
that the Holder is able, without materially impairing the Holder’s financial condition, to hold the Securities for an indefinite
period of time and to suffer a complete loss of the Holder’s investment.

 

(d)       Further
Limitations on Disposition. Without in any way limiting the representations set forth above, the Holder further agrees
not to make any disposition of all or any portion of the Securities unless and until:

 

    	9 

    	 

    

 

 

A.       There
is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance
with such registration statement; or

 

B.       The
Holder shall have notified the Borrower of the proposed disposition and furnished the Borrower with a detailed statement of the
circumstances surrounding the proposed disposition, and if reasonably requested by the Borrower, the Holder shall have furnished
the Borrower with an opinion of counsel, reasonably satisfactory to the Borrower, that such disposition will not require registration
under the Act or any applicable state securities laws; provided that no such opinion shall be required for dispositions in compliance
with Rule 144 under the Act, except in unusual circumstances.

 

C.       Notwithstanding
the provisions of paragraphs (A) and (B) above, no such registration statement or opinion of counsel shall be necessary for a transfer
by the Holder to a partner (or retired partner) or member (or retired member) of the Holder in accordance with partnership or limited
liability company interests, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors,
if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were the Holders hereunder.

 

D.       Accredited
Investor Status. The Holder is an “accredited investor” as such term is defined in Rule 501 under the Act.

 

E.       No
“Bad Actor” Disqualification. The Holder represents and warrants that neither (i) the Holder nor (ii) any entity
that controls the Holder or is under the control of, or under common control with, the Holder, is subject to any Disqualification
Event, except for Disqualification Events covered by Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act and disclosed
in writing in reasonable detail to the Borrower. The Holder represents that the Holder has exercised reasonable care to determine
the accuracy of the representation made by the Holder in this paragraph, and agrees to notify the Borrower if the Holder becomes
aware of any fact that makes the representation given by the Holder hereunder inaccurate.

 

F.       Foreign
Investors. If the Holder is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code
of 1986, as amended (the “Code”)), the Holder hereby represents that he, she or it has satisfied itself
as to the full observance of the laws of the Holder’s jurisdiction in connection with any invitation to subscribe for the
Securities or any use of this Note, including (i) the legal requirements within the Holder’s jurisdiction for the purchase
of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents
that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale or transfer of the Securities. The Holder’s subscription, payment for and continued beneficial
ownership of the Securities will not violate any applicable securities or other laws of the Holder’s jurisdiction.

 

G.       Forward-Looking
Statements. With respect to any forecasts, projections of results and other forward-looking statements and information
provided to the Holder, the Holder acknowledges that such statements were prepared based upon assumptions deemed reasonable by
the Borrower at the time of preparation. There is no assurance that such statements will prove accurate, and the Borrower has no
obligation to update such statements.

 

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.

 

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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 commercially reasonable best efforts to satisfy all conditions to be in compliance and satisfy (on or before November
14, 2020) 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       Section
3(a)(10) Transaction. So long as the Borrower shall have any obligation under this Note, the Borrower shall not enter into
any transaction or arrangement structured in accordance with, based upon, or related or pursuant to, in whole or in part, Section
3(a)(10) of the Securities Act (a “3(a)(10) Transaction”). In the event that the Borrower does enter into, or
makes any issuance of Common Stock related to a 3(a)(10) Transaction while this note is outstanding, a liquidated damages charge
of twenty-five percent (25%) of the outstanding principal balance of this Note, but not less than Fifteen Thousand Dollars $15,000,
will be assessed and will become immediately due and payable to the Holder at its election in the form of cash payment or addition
to the balance of this Note.

 

4.9       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.

 

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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.

 

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.

 

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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.

 

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. On or after November 14, 2020, 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        Cessation
of Trading. Any cessation of trading of the Common Stock on at least one of the OTCBB, OTCQB, OTC Link f/k/a “Pink
Sheets,” or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq Small Cap Market, the New York Stock
Exchange, or the NYSE MKT, and such cessation of trading shall continue for a period of five consecutive (5) Trading Days.

 

5.21        Bid
Price. The Borrower shall lose the “bid” price for its Common Stock ($0.0001 on the “Ask” with
zero market makers on the “Bid” per Level 2) and/or a market (including the OTCBB, OTCQB, OTC Link f/k/a “Pink
Sheets,” or an equivalent replacement exchange).

 

    	13 

    	 

    

 

 

5.22        OTC
Markets Designation. OTC Markets changes the Borrower's designation to ‘No Information’ (Stop Sign), ‘Caveat
Emptor’ (Skull and Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark
Sign).

 

5.23       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 through Section 5.7, or Section 5.9 through Section 5.22, 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 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:

 

    	14 

    	 

    

 

 

(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

 

 

(ii) if to the Holder,
to:

 

Penumbra Solar, Inc.

16640 Bienveneda Place

Pacific Palisades, CA 90272

Attn: David Peterson

Email: dpeterson@penumbrasolar.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, 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.

 

    	15 

    	 

    

 

 

6.7       Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of Delaware 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 Colorado or in the federal courts located in Denver County, State of Colorado. 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.

 

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 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.

 

    	16 

    	 

    

 

 

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, 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.

 

    	17 

    	 

    

 

 

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.

 

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 ]

 

 

    	18 

    	 

    

 

IN WITNESS WHEREOF,
each of the Parties have 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

 

 

PENUMBRA SOLAR, INC.

 

 

 

By: /s/ David Peterson

Name: David Peterson

Title: CEO

 

 

 

    	19 

    	 

    

EXHIBIT A

 

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 June 9, 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:                                                                              .

 

 

 

    	 

    	 

    

 

 

PENUMBRA SOLAR, INC.

 

 

 

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: _____________________________

 

 

 

 

    	 

    	 

    

ANNEX I

 

REPAYMENT LEDGER 

 

	Date 	 	Principal Balance 	 	
        Principal 

         Paid 
	 	
        Interest 

        Paid 
	 	
        Fees or

        Damages Sums
	 	
        New Principal 

        Balance
	 	
        Holder 

        Initials

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