NOTE
AGREEMENT





 


This
loan agreement (the “Agreement”) is entered into on this 1st day of September, 2016 by and between Sail
D. White, place of residence Arkansas, (hereinafter referred to as the “Lender”), and Cyclone Power Technologies Inc.,
a company duly organized and validly existing under the laws of the State of Florida, United States, with a registered office
at 601 NE 26th Court, Pompano Beach, FL 33064, (hereinafter the “Borrower”), represented by the board member/President
Frankie Fruge.


 


The
Borrower and the Lender hereinafter collectively referred to as “Parties” and individually as a “Party”


 


WHEREAS


 


The
Borrower is established as a public company with its legal seat and registered in the State of Florida in the United States;


 


The
Lender wishes to finance activities of the Borrower by extending an interest bearing loan with principal in cash and interest
in stock of Borrower,


 


NOW,
THEREFORE, the Parties have agreed in the following:


 


 


1.
Loan amounts and disbursement. The Lenders herewith undertake to allocate to the Borrower the loans as
following:


 


	Lender	 	Total loan amount (USD)	 
	Sail D. White	 	$	27,000.00	 



 


The
Lender shall transfer the respective loan amount to the bank account of the Borrower at Professional Bank. within 5 business days
as of the date hereof:


 


Beneficiary:
Cyclone Power Technologies Inc., Operating Account


Beneficiary
Bank: Professional Bank


ROUTING
#: 067016574


Bank
Account: 2017203


Transfer
Details: Loan


 


2.
Loan Term and Interest: The Loan allocated to the Borrower as per this Agreement shall be an interest bearing loan with a
term of Six (6) weeks, at an interest payable of 1,500,000 shares of Borrow stock issued to Lender.


 






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3.
Repayment of the Loan: The Parties herewith agree that that the loan extended to the Borrower shall be called for
repayment Six (6) weeks from the signing of this agreement and the Borrower shall repay the Loan to the Lender by issuing a
relevant resolution of the Shareholders. The Borrower shall repay the Loans within the term and in the amount set forth in
this Agreement. Principal and Interest payment is due and payable in accordance with the following schedule.


 


	 	3.1.	Principal
    shall be paid in full no later than with the final payment. Six (6) weeks.
	 	 	 
	 	3.2.	Upon
    execution of this Agreement, Lender shall provide payment instructions to the Borrower. There shall be a five-day grace period
    permitted for the scheduled payment.
	 	 	 
	 	3.3	All
    due in Six (6) weeks


.


 


4.
Default, Governing Law and Dispute Resolution: This Agreement shall be governed by and construed in accordance with the
laws of Florida.


 


	 	4.1.	The
    Parties shall make every attempt to resolve disputes arising from this Agreement through amicable negotiation.
	 	 	 
	 	4.2.	Should
    amicable negotiations fail to resolve the dispute, the borrower or lender shall be free to bring suit in any court of competent
    jurisdiction. Borrower hereby waives presentment and all demands and notices in connection with the delivery, acceptance,
    performance and enforcement of this Note. Time of payment may be extended in writing by the Lender only. Should payment not
    be made when due or in the event of default, Borrower shall pay to Lender the costs of collection, including reasonable attorney
    fees.
	 	 	 
	 	4.3.	In
    the event of default, the amount of principal and interest outstanding shall automatically convert to common stock in Cyclone
    Power Technologies Inc. in the amount of the previous 20 day stock closing average and stock certificates evidencing ownership
    shall be promptly delivered. The Lender shall notify Borrower of his intention to hold ownership or file suit for repayment
    of the principal and interest within 10 days of default.
	 	 	 
	 	4.4	In
    the event the client does not agree with Section 4.3 in the case of default, the company offers collateral in the property
    located 601 NE 26th Court, Pompano Beach, FL 33064 and the Cyclone patent portfolio.


 


5.
No Assignment The Lender shall not assign this Agreement or any of its/his/her rights or obligations under this Agreement
to any person unless otherwise specified in this Agreement.


 


6.
Counterparts of the Agreement This Agreement has been executed in two (2) identical counterparts, one (1) for each
Party.


 




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	Borrower:
    Lenders	 	Lender/Investor:
	Cyclone
    Power Technologies Inc.	 	 
	 	 	Sail
    D. White
	 	 	 
	Frankie
    Fruge, President/Director	 	 
	 	 	 
	DATE:
    September 1, 2016	 	DATE:
    September 1, 2016


 



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