Doughty Hanson Commits Up To $3 Million in Equity for Sustainable Energy

As compensation for underwriting the Equity Commitment The equity will be provided by the purchase of First Preferred Shares ("Series 9 Shares"), which are redeemable at any time at the option of the Company, will be convertible into Common Shares of Sustainable Energy at a price that is equal to the weighted market price determined over a pricing period of however five trading days preceding notice of each drawdown by the Company. The Series 9 Shares are similar to, and rank pari passu with First Preferred Shares Series 7 ("Series 7 Shares").

"Sustainable Energy's core value propositions, based on company's proprietary low voltage inverter technology, are stronger than ever," said George Powlick, Managing Director of Doughty Hanson. "Our equity commitment will support the company as it resolves existing supply constraints and positions itself to meet growing demand."

The Equity Commitment is intended to provide short term working capital and the equity support needed by the Company to secure operating lines to increase production of its SUNERGY inverters to meet a growing order book. The Equity Commitment is irrevocable as to the first $1.5 million with the balance subject to Doughty Hanson being satisfied on certain financial and performance benchmarks.

As compensation for underwriting the Equity Commitment, Doughty Hanson will receive a $45,000 arrangement fee and 5,161,290 Warrants to acquire Common Shares of the Corporation exercisable at $0.155 per share for a period of one year from the date of Closing of the Agreement. The Warrants have a cashless exercise feature which permits their exercise on surrender of the Warrants, and the number of Common Shares issued will be based on however the intrinsic value of the Warrants at the time of exercise.