Ascent Solar Secures New Equity Investment of up to $35.0 Million, Expects to Fully Repay Existing Senior Secured Convertible Note by January 2016 - Seite 2

Series E Preferred Stock

The Company issued 1,000 shares of Series E Preferred Stock to Investor in exchange for $1 million on November 4, 2015, and will issue an additional 500 shares of Series E Preferred Stock to Investor in exchange for $500,000 after the Company's filing of a registration statement covering the re-sale of the common stock underlying the Series E Preferred Stock with the SEC. The Company will further issue an additional 1,300 shares of Series E Preferred Stock to Investor in exchange for $1,300,000 upon the earlier of (i) December 19, 2015 or (ii) the effectiveness of the Company's registration statement mentioned above.

Shares of the Series E Preferred Stock (including the amount of any accrued and unpaid dividends thereon) will be convertible at the option of the holder into common stock at a prevailing fixed conversion price equal to 80% of the average of the two lowest volume weighted average prices ("VWAPs") of the Company's common stock for the ten consecutive trading day period prior to the conversion date. There will not be any further adjustment of the conversion price on a forward looking basis or any true-up shares associated with each conversion. 

Committed Equity Line

Under the terms and subject to the conditions of the CEL Purchase Agreement, at its option the Company has the right to sell to Investor, and Investor is obligated to purchase from the Company, up to $32.2 million of the Company's common stock, subject to certain limitations, from time to time, over the next 36 months. 

From time to time, the Company may direct Investor, at its sole discretion and subject to certain conditions, to purchase an amount of shares of common stock up to the lesser of (i) $1,000,000 (calculated using the per share price described below) or (ii) 300% of the average daily trading volume of the Company's common stock over the preceding ten trading day period. The per share purchase price for shares of common stock to be sold by the Company under the CEL Purchase Agreement at each draw down shall be fixed at 80% of the average of the two lowest VWAPs of the common stock for the ten consecutive trading day period prior to the purchase date. There will not be any further adjustment of the purchase price on a forward looking basis or any true-up shares associated with each draw down.