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TERMINATION AGREEMENT

This TERMINATION AGREEMENT (“Agreement”) is entered into as of June 13, 2012 by
and among American Power Corp. (the “Company”) and YA Global Master SPV, Ltd.
(the “Investor”).

WHEREAS, Company and the Investor entered into that certain Note Purchase
Agreement, dated as of February 17, 2012 (the “Note Purchase Agreement”), and
that certain Standby Equity Distribution Agreement, dated as of February 17,
2012 (the “SEDA”);

WHEREAS, in connection with the transactions contemplated by the SEDA, the
Company filed a registration statement on Form S-1 (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”); and

WHEREAS, in response to a comment letter from the state of the SEC, the parties
believe the effectiveness of the Registration Statement will be facilitated by
the termination of the Note Purchase Agreement.

NOW THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

1.           Termination.  Each of the Company and the Investor hereby mutually
agree that the Note Purchase Agreement shall be terminated and of no further
force or effect, and no party to the Note Purchase Agreement shall have any
further rights or obligations thereunder.

2.           Miscellaneous.  This Agreement will inure to the benefit of and be
binding on each of the parties hereto and their respective successors and
assigns.  This Agreement will be governed by and construed in accordance with
the laws of the State of Colorado, without regard to its conflict of laws
principles.

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IN WITNESS WHEREOF, the undersigned have executed this Termination Agreement as
of the date first written above.

 

  COMPANY:         AMERICAN POWER CORP.               By:            /s/ Alvaro
Valencia                                                         Name: Alvaro
Valencia   Title:                       Chief Executive Officer                
    INVESTOR:         YA GLOBAL MASTER SPV, LTD.               Name: Yorkville
Advisors, LLC   Its: Investment Manager               By: /s/ Gerald Eicke    
Name: Gerald Eicke   Title: Managing Member      

 

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