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Counsel RB Capital Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2

MUTUAL SEPARATION AND TRANSITION AGREEMENT

     This Mutual Separation and
Transition Agreement (“Agreement”) is entered into effective as of June 30,
2013, among Counsel RB Capital Inc. (“Company”), Jonathan Reich (“Executive”),
CRB Holdings NY, LLC (“CRB Holdings”), and Forsons Equity, LLC (“Forsons”) (each
a “Party” and collectively the “Parties”).

     Executive is employed by Company
as its Co-CEO and Executive’s wholly-owned company, CRB Holdings, is a
stockholder of Company;

     The Parties have mutually agreed
to end Executive’s employment relationship with Company, to terminate certain
agreements among the Parties, and to part amicably.

     In consideration of the
agreements set forth below, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties, intending
to be legally bound, agree as follows:

     1. Executive’s
Separation. Executive’s separation from Company will be effective
as of the close of business on June 30, 2013 (the “Separation Date”). Executive
hereby resigns as an employee, director, officer and from any other position he
may hold at Company and each of its Affiliates, effective as of the Separation
Date. For purposes of this Agreement, Affiliates means any person, entity or
organization that controls, is controlled by or under common control with
Company or Executive, respectively. For purposes of this Agreement, the term
“control” means the possession, directly or indirectly, of the power to direct
or cause the direction of the management of a person, entity, partnership, joint
venture, trust, business or other organization or association, whether through
ownership of voting securities, as trustee or executor, by contract or any other
means. For clarity, the Affiliates of Executive include Forsons, CRB Holdings
and Reich Brothers, Inc., and the Affiliates of Company include Counsel
Corporation, Counsel RB Capital LLC (“CRB”) and Heritage Global Partners, Inc.
(“HGP”).

     2. Salary and
Benefits. Subject to standard withholding requirements, Company
will pay Executive an amount equal to his present monthly salary and continue
any group medical or health benefits plan currently provided by Company, in each
case through July 31, 2013. On or before August 1, 2013, Executive will pay to
Company an amount equal to the sum of Executive’s salary for July plus the cost
of Executive’s group medical or health benefits plan for July. For clarity, such
expenses include the amounts shown on Schedule 2. No benefits, salary,
bonus, severance payments or other amounts whatsoever will be due to Executive
except as set forth in this Section 2. Executive may exercise the option of
continuing any group medical or health benefit plan provided by Company
consistent with, for the duration allowed by, and under the conditions imposed
under applicable federal and state laws. Company will provide Executive with a
standard COBRA letter providing further details concerning Executive’s health
insurance continuation rights.

     3.
Expenses. Company has paid the June charges on
Executive’s AMEX account in accordance with Company policy. On or before August
1, 2013, Executive and Adam Reich will reimburse Company for Executive’s
personal expenses shown on Schedule 2. Amounts otherwise due from
Executive and Adam Reich under this Agreement will be reduced by certain
expenses paid by Adam Reich in the amount shown on Schedule 2.

     4. Common Stock and
Intellectual Property Matters.

          4.1
Surrender of Shares. Effective on the Separation Date, Executive hereby
surrenders to the Company 400,000 shares of Company Common Stock (the “Shares”).
Executive represents and warrants to Company that Executive holds good and valid
title to, and sole record and beneficial ownership of, the Shares, free and
clear of any liens, encumbrances, claims or other defects of title or
restrictions other than applicable securities laws (collectively,
“Encumbrances”), and Executive has not assigned or agreed to assign any rights
related to the Shares. Promptly following execution of this Agreement, Executive
will deliver to Company the stock certificates representing all of the Shares,
with duly executed stock powers reasonably satisfactory to Company and its
transfer agent, in proper form for transfer, free and clear of all
Encumbrances.

          4.2
Termination of License. The Intellectual Property License and
Preservation Agreement dated August 10, 2012, between Executive and Company is
hereby terminated as of the Separation Date. Promptly following the execution of
this Agreement, Company will take all reasonable steps to change the name of
Company and its subsidiaries to remove references to “RB” and will not use the
name Reich Brothers or any variant thereof from and after the execution of this
Agreement. For clarity, the term of the Intellectual Property License and
Preservation Agreement set forth in Section 3 of that agreement is terminated
and ends effective as of the Separation Date.

          4.3
Options. Executive’s option to acquire up to 625,000 shares of Company
Common Stock pursuant to the Stock Option Grant Notice dated January 19, 2011
between Executive and Company will remain in full force and effect, in
accordance with and subject to the terms and conditions of the grant notice,
Stock Option Agreement dated January 19, 2011 between Executive and Company, and
Company’s 2010 Non-Qualified Stock Option Plan.

          4.4
Retained Stock. For clarity, CRB Holdings will retain the 1,621,000
shares of Company Common Stock that it currently owns. Such shares will remain
subject to all applicable state and federal securities laws. Promptly following
the execution of this Agreement, the Parties will cooperate to remove from the
stock certificates representing such shares all restrictive legends other than a
standard securities laws legend.

     5. Satisfaction of
Guarantees. On or promptly following the execution of this
Agreement, Company will procure the termination of the following Agreements
related to Company’s loan from Israel Discount Bank of New York (“IDB”):
Guaranty Agreement from Forsons Equity, LLC dated June 2, 2009, Support
Agreement from Jonathan Reich dated June 2, 2009, and Guaranty Agreement
(Validity) from Jonathan Reich dated June 2, 2009. The Parties acknowledge and
agree that the Guaranty Agreement (Limited) from Jonathan Reich dated June 2,
2009 was released by IDB on or about March 1, 2011. In this regard, Company
agrees to advance funds to CRB to pay off in full on or before the execution of
this Agreement, Company’s obligations to Israel Discount Bank under the above
referenced loan, with an approximate remaining balance of $4,000,000. In the
event, for any reason, any of the guaranty or support agreements referenced
above, or any replacements or amendments thereof are not fully released and
terminated by the execution of this Agreement, the Company hereby agrees to
indemnify, defend and hold harmless the Executive and his heirs, successors and
assigns from and against any claims made by Israel Discount Bank or its assigns
under any of such guaranty or support agreements referenced above or any replacements or
amendments thereof. In the event such guaranty or support agreements are not
terminated and released in full within 30 days following the Separation Date,
the Company will terminate its loan facilities with Israel Discount Bank and
replace them with another lender and new loans.

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     6. Termination of
Other Agreements.

          6.1
Terminated Agreements. Except as provided in Section 6.2, each existing
agreement between the Parties is hereby terminated as of the Separation Date,
including but not limited to the Company Code of Conduct as it applies to
Executive, the Employment Agreement between Executive and Company dated January
19, 2011, as amended, and the Lock-up Agreement among Forsons, Executive and
Company dated December 10, 2012, as amended. For clarity, no provisions of the
Company Code of Conduct as it applies to Executive, the Employment Agreement
between Executive and Company dated January 19, 2011, as amended, or the Lock-up
Agreement among Forsons, Executive and Company dated December 10, 2012, as
amended, that were intended to survive termination of such agreements shall
continue after the Separation Date unless they are required by law. For clarity,
notwithstanding the termination of the foregoing agreements, no claim for any
breach of any agreement or obligation by any Party is waived or released by this
Agreement.

          6.2
Surviving Agreements. Notwithstanding Section 6.1, the Stock Option Grant
Notice and Stock Option Agreement described in Section 4.3 and the
Indemnification Agreement dated January 19, 2011 between Executive and Company
will remain in full force and effect in accordance with their terms
(collectively, the “Surviving Agreements”). For clarity, Executive’s rights to
indemnification, under the charter and bylaws of Company and the constituent
documents of Company’s subsidiaries will remain in full force and effect in
accordance with their terms. Executive’s rights and obligations under any
directors’ and officers’ insurance policy maintained by Company are not effected
by this Agreement and the Company agrees to maintain such policies after the
Separation Date in Company’s discretion in accordance with Company’s needs;
provided that Company will notify Executive if Company plans to terminate or not
renew such insurance so that Executive may seek to purchase tail or other
coverage.

          6.3
Non-disparagement. Except as required by applicable law or compelled by
legal process, neither Executive nor anyone acting on his behalf will (i) make
any derogatory, disparaging or critical statement about the Company, its
Affiliates, or any of their present or former officers, directors, employees,
shareholders, parents or subsidiaries or (ii) without the prior written consent
of the Company, communicate, directly or indirectly, with the press or other
media concerning the Company, its Affiliates, or any of their present or former
employees or business of the Company (other than incidental references to the
Company or its business which are non-specific in nature and included as a part
of Executive's general market observations). Further, the Company agrees that,
both during and after the Employment Period, except as required by applicable
law or compelled by legal process, neither the Company nor anyone acting on its
behalf will (i) make any derogatory, disparaging or critical statement about
Executive, his Affiliates, or any of their present or former officers,
directors, employees, shareholders, parents or subsidiaries or (ii) without the
prior written consent of Executive, communicate, directly or indirectly, with
the press or other media concerning Executive, his Affiliates, or any of their present or former officers,
directors, employees, shareholders, parents or subsidiaries.

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     7. Transition
Matters.

          7.1
Transition Services. Executive will assist Company and reasonably
cooperate in the transition of Executive’s responsibilities and duties to the
Company and its Affiliates to such persons as may be designated by the Company,
including assisting in transitioning business points of contacts and
relationships with which Executive or any Transferred Employee (defined below)
has been the principal point of contact on behalf of the Company or its
Affiliates and ensuring the transfer of relevant knowledge necessary to enable
the successful completion of and collection of amounts due under any
transactions underway for which Executive or any Transferred Employee (defined
below) has been principally responsible. Following the execution of this
Agreement, Executive will be reasonably available via email and telephone to
answer questions and provide guidance relating to matters previously under the
direction or control of Executive or any Transferred Employee, and will
cooperate in good faith with Company in providing information and answering
questions related to such matters. Except as provided in Sections 7.6 and 7.7,
Company anticipates that the need for post-Separation Date cooperation will be
limited, and that Executive will not be required to play an active role in any
Company transactions after the execution of this Agreement. As part of his
employment, Executive obtained knowledge, information, and expertise regarding
the operations of Company that may be useful to Company in prosecuting,
defending and otherwise managing current and future litigation matters by or
against Company. After the execution of this Agreement, Executive will, with
reasonable notice and at Company’s expense, furnish information as may be in the
possession of Executive or any Transferred Employee and will cooperate and cause
the Transferred Employees to cooperate with Company as may reasonably be
requested in connection with any claims or legal actions in which Company or its
Affiliates are or may become a party.

          7.2
Employee Transfer. Effective as of the Separation Date, CRB will
terminate the employment of Marc Esrig, Steve Kaufman, Yulia Levesque, Vaughn
Barber and Ron Schinik (collectively, the “Transferred Employees”). Subject to
standard withholding requirements, Company will pay the Transferred Employees an
amount equal to their present monthly salary and continue any group medical or
health benefits plan currently provided by Company, in each case through July
31, 2013. On or before August 1, 2013, Executive will pay to Company an amount
equal to the sum of the Transferred Employees’ salaries for July plus the cost
of Transferred Employees’ group medical or health benefits plan for July.
Effective as of the Separation Date, Executive will employ the Transferred
Employees on terms determined by Executive. Executive will indemnify, defend and
hold harmless Company for any loss, cost or liability (including reasonable
attorneys’ fees) incurred by Company or any Affiliate arising out of or relating
to accrued paid time off and accrued vacation of the Transferred Employees as of
the Separation Date which have not been paid to the Transferred Employees as of
the Separation Date, including any investigation, complaint or action by any
Transferred Employee or governmental agency or authority. Executive agrees to
pay any claim for such unpaid time off or vacation pay when and if asserted by
any Transferred Employee. The Transferred Employees will not receive bonus or
severance pay upon their departure from Company.

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          7.3
Office Transfers. Effective as of the Separation Date, Executive will
cause his Affiliates to terminate the New York Lease (the “Lease”) dated March
1, 2009 for the Company’s NY office (the “Office”). Notwithstanding the
provisions of the Lease, after the Separation Date, no party to the Lease will
have any further rights, obligations, duties or liabilities under the Lease.
Executive will be entitled to retain all of Executive’s personal property
located at the Office. On or before August 1, 2013, Executive will return to
Company the security deposit shown on Schedule 2.

          7.4
Active Transactions. Attached as Schedule 7.4A is a list of active
transactions or opportunities with respect to which Company, its Affiliates or
Executive have commenced meaningful efforts as of the Separation Date (the
“Pending Opportunities”), and attached as Schedule 7.4B is a list of
publicly known transactions on which Company, its Affiliates or Executive have
not commenced meaningful efforts to obtain or pursue as of the Separation Date
(the “Public Opportunities”). For clarity, “commenced meaningful efforts”
includes making a bid, inspecting the property or putting a partners group
together to pursue the opportunity. Schedule 7.4B is a list of publicly
known transactions based on Executive’s last 6 month’s expense report data
showing which transactions have been under consideration to varying degrees, but
that have not become Pending Opportunities. Executive represents and warrants to
Company that Schedule 7.4A is complete and accurate and that, other than
transactions and opportunities that are identified on Schedule 7.4A,
Executive has no actual knowledge of any transactions or opportunities with
respect to which Company, its Affiliates or Executive have commenced meaningful
efforts as of the Separation Date. For a period of 180 days following the
Separation Date, Executive and his Affiliates, including any venture in which
Executive is involved in the future, will not directly or indirectly, solicit,
exploit, pursue or undertake any Pending Opportunity or assist any third party
to do so. The restrictions in this Agreement are narrowly tailored to protect
Company’s interest in its Pending Opportunities that Company has expended
substantial effort to pursue, and will not impair Executive’s ability to
practice his profession or earn a living. Either party to this Agreement may
solicit any party named on Schedule 7.4B without restriction. The
restrictions in this Section 7.4 are not intended to prevent Executive or Reich
Brothers, Inc. from pursuing any opportunities that are not Pending
Opportunities.

          7.5
Asset Disposition. Company will not dispose of any material assets of
Company or CRB identified on Schedule 7.5, except or unless: (i) in
good-faith, arm’s-length transactions at fair market value with unrelated third
parties; or (ii) with the prior written consent of Executive; or (iii) Company
or CRB contemporaneously assigns to Executive an interest in such assets
proportional to Executive’s percentage ownership of the Company’s then current
issued and outstanding capital stock on a fully diluted basis (“Executive’s
Prorata Share”); or (iv) Company or CRB contemporaneously pays to Executive an
amount equal to the product of (y) the fair market value of such assets
multiplied by (z) Executive’s Prorata Share. For purposes hereof, fair market
value of assets shall be no less than the fair market value determined in any
disposition of such assets.

          7.6
Confirmed Profit Share. Following the execution of this Agreement,
Company will pay to Executive and Adam Reich, jointly, an amount equal to the
percentage specified on Schedule 7.6 multiplied by the Cumulative Net
Profits (defined below) from the transactions identified on Schedule 7.6.
Executive will remain actively involved in these transactions and assist Company
and its Affiliates to complete such transactions, in each case as reasonably requested by Company. “Cumulative Net Profits” means
the cumulative sum of net profits received and losses incurred by CRB and its
Affiliates from the sale by CRB and its Affiliates of the assets included in the
specified transactions; provided that the net profits or losses for each such
transaction will be calculated on the same basis as net profits and losses are
required to be calculated with respect to third-party partners in the applicable
transaction, or, if the transaction does not include a third party partner, the
gross sale proceeds less the cost of goods, capital invested, sales, use,
transfer and similar taxes and expenses directly related to the acquisition and
sale of the assets, including carrying costs of any real estate. Company will
track all amounts received that are subject to this Section 7.6, and all
applicable costs, expenses and disbursements, and within 30 days following
Company’s final determination of the Cumulative Net Profits, Company will pay to
Executive and Adam Reich, jointly, any amount required by this Section 7.6, and
provide a calculation in reasonable detail of Company’s determination of any
amount due. For clarity, in calculating Cumulative Net Profits, any negative net
profits resulting from any applicable transaction will be offset against any
positive net profits resulting from any applicable transaction, provided that if
Cumulative Net Profits is an amount below zero, Executive will not be obligated
to pay Company any portion of the negative Cumulative Net Profits.

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               7.6.1
Exception Transaction.

                    (a)
Purchase. With respect to the transaction identified on Schedule 7.6
that is marked with an asterisk (the “Exception Transaction”), on or before
July 31, 2013, Executive, jointly with Adam Reich, may in their discretion
notify Company in writing (the “Election Notice”) of their intent to purchase
the remaining assets related to the Exception Transaction (the “Exception
Assets”) for a total purchase price equal to the sum of: (i) all costs and
expenses incurred, paid or payable and related to the acquisition of the
Exception Assets, and all other costs and expenses incurred, paid or payable and
related to the Exception Assets through July 31, 2013, minus (ii) $250,000. To
be effective the Election Notice must, if accepted by Company, constitute a
binding obligation of Executive to consummate the purchase of the Exception
Assets and include an earnest money deposit of $400,000. The earnest money will
be applied to the purchase price at closing, be returned to Executive if Company
defaults, or be retained by Company if Executive defaults. Retention or return
of the earnest money will not limit or affect any remedy available to any Party
for a default. Within fifteen days after receipt of an effective Election
Notice, Company will notify Executive and Adam Reich in writing whether Company,
in its discretion, accepts the Election Notice and agrees to be bound to
consummate the sale of the Exception Assets. If Company accepts in writing the
Election Notice, then on a mutually agreed date that is not later than September
30, 2013, the parties will consummate the sale of the Exception Assets. At the
closing of any transaction pursuant to an Election Notice accepted by Company,
Executive and Adam Reich may assign and delegate their purchase rights and
obligations to a third-party purchaser.

                    (b)
Effect on Cumulative Net profits. For purposes of Section 7.6, the
Exception Transaction will be excluded from the calculation of Cumulative Net
Profits if either: (i) a sale of the Exception Assets to Executive or his
assignee is consummated pursuant to Section 7.6.1(a), or (ii) Company declines
to accept an effective Election Notice pursuant to Section 7.6.1(a) . Any other
transaction involving the Exception Assets will be included in the calculation
of Cumulative Net Profits for purposes of Section 7.6.

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                    (c)
Reporting. Within 90 days after the end of each fiscal year and within 60
days after the end of each other fiscal quarter, in each case prior to a
disposition of the Exception Assets, Company will provide Executive with an
unaudited balance sheet and income statement with respect to the Exception
Assets. Upon reasonable request, Company will make available for examination by
Executive those books and records of Company that are directly related to the
Exception Assets, to enable Executive to confirm the contents of such financial
statements. Executive will not use such financial statements or any related
information for any purpose other than understanding the status of the Exception
Assets, and will not disclose or permit any third party to access the financial
statements or the information therein or any related information.

          7.7
Potential Profit Share. Following the execution of this Agreement,
Company will pay to Executive and Adam Reich, jointly, an amount equal to up to
the percentage specified on Schedule 7.7 multiplied by the Cumulative Net
Profits from those transactions identified on Schedule 7.7 in which
Executive is integrally involved in the disposition of the remaining assets, as
determined in accordance with this Section 7.7. Ross Dove and Kirk Dove (the
“Dove Brothers”) will recommend to an independent committee of the Company’s
Board of Directors, currently consisting of Sam Shimer and Brendon Ryan (the
“Independent Committee”) whether Executive is entitled to payment with respect
to any such transaction and, if so, the percentage payment due. Absent manifest
error, the Dove Brothers’ recommendation will be accepted by the Independent
Committee. If any Party disputes the recommendation of the Dove Brothers, the
Independent Committee will resolve the dispute in good faith and the Independent
Committee’s decision will be binding on the Parties. If the Dove Brothers are
not employed by CRB or an Affiliate when a payment may be due under this Section
7.7, then the decision of the Independent Committee regarding the payment of any
amount due under this Section 7.7 will be binding on the Parties. Company will
track all amounts received that are subject to this Section 7.7, and all
applicable costs, expenses and disbursements, and within 30 days following the
final determination of the Cumulative Net Profits, Company will pay to Executive
and Adam Reich, jointly, any amount required by this Section 7.7. For clarity,
in calculating Cumulative Net Profits, any negative net profits resulting from
any applicable transaction will be offset against any positive net profits
resulting from any applicable transaction, provided that if Cumulative Net
Profits is an amount below zero, Executive will not be obligated to pay Company
any portion of the negative Cumulative Net Profits.

     7.8 Commissions and
Claims.

               (a)
Pending Commissions. Subject to Company’s prior or contemporaneous
receipt of written confirmation from International Textile Machinery Sales,
Inc., Del Ezell and Midtown Commercial Real Estate that all obligations of
Company and its Affiliates to them have been satisfied in full and that the
amounts being paid are due for services properly rendered and not payable in
whole or part, directly or indirectly to Executive or his Affiliates, promptly
following the execution of this Agreement Company will pay and deduct in the
calculation of Cumulative Net Profits in respect of the Exception Transaction:
(i) $50,000 of commissions and expenses of ITMS, the dealer responsible for the
sale of the equipment related to the Exception transaction in December 2012,
(ii) $20,000 of expenses of Del Ezell, and (iii) $30,000 of fees of Midtown
Commercial, the finder of the Exception Transaction.

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               (b)
Compensation Claims. If any third party that was not identified to
Company’s investment committee as a broker or finder with respect to a Pending
Opportunity asserts that, based on communications with Executive, it is entitled
to participate in, share profits in, or receive consideration with respect to
such Pending Opportunity (a “Compensation Claim”), then: (i) if Executive
acknowledges such communication, Executive will either pay the Compensation
Claim or obtain for the benefit of Company and its Affiliates a release and
waiver of the Compensation Claim, or (ii) if Executive denies such communication
Executive will furnish information as may be in the possession of Executive or
any Transferred Employee and will cooperate and cause the Transferred Employees
to cooperate with Company as may reasonably be requested in connection with
defending any claims or legal actions arising out of or related to the
Compensation Claim and, if it is finally determined that the Compensation Claim
was based on communications with Executive, Executive will either pay the
Compensation Claim or obtain for the benefit of Company and its Affiliates a
release and waiver of the Compensation Claim.

               (c)
Partner Claims. If, with respect to any potential transaction that was
presented to Company’s investment committee, a third party that was not
identified to the investment committee asserts that, based on communications
with Executive, it is entitled to participate in, share profits in, or receive
consideration with respect to such transaction (a “Partner Claim”) then: (i) if
Executive acknowledges such communication, Executive will either pay the partner
Claim or obtain for the benefit of Company and its Affiliates a release and
waiver of the Partner Claim, or (ii) if Executive denies such communication
Executive will furnish information as may be in the possession of Executive or
any Transferred Employee and will cooperate and cause the Transferred Employees
to cooperate with Company as may reasonably be requested in connection with
defending any claims or legal actions arising out of or related to the partner
Claim and, if it is finally determined that the Partner Claim was based on
communications with Executive, Executive will either pay the Partner Claim or
obtain for the benefit of Company and its Affiliates a release and waiver of the
Partner Claim.

     7.9 Company Property and
Operational Data.

          7.9.1
Return of Company Property. On the execution of this Agreement, Executive
will return and deliver to the Secretary of Company, all paper files and records
relating to the business of the Company, any subscriptions, any licenses for
licensed software, and all prepaid assets, security and other deposits and
similar assets. Executive will not retain any copies or extracts of the
foregoing or make any use of Company assets after the execution of this
Agreement, except as directed by Company to support ongoing transactions
pursuant to Sections 7.6 and 7.7. Executive will retain all other personal
property located at the Office. For purposes of clarity, the Company shall not
be entitled to retain a copy of Executive’s Microsoft Outlook personal contact
database.

          7.9.2
Operational Data. Executive owns his personal contact databases and the
Transferred Employees own their own personal contact databases contained in
Microsoft Outlook. Executive will be entitled to retain the use of CRB’s
telephone numbers. CRB will implement a forwarding message for all emails
addressed to Executive and Transferred Employees which shall read as follows:
“Please note that effective July 1, 2013, Jonathan Reich/Adam Reich and the
employees at both the New York and Los Angeles offices of Counsel RB Capital
have joined Reich Brothers LLC. Jonathan/Adam can be reached at jreich@reichbros.com/areich@reichbros.com. The addresses
and phone numbers remain the same.” From the Separation Date through December
31, 2013, Company will cause such forwarding message to be in effect, and will
forward to Executive all email messages received by Company and addressed to
Executive or Transferred Employees. No personnel of Company or its Affiliates
will access or read any emails sent to Executive or the Transferred Employees
from the Separation Date through December 31, 2013. After December 31, 2013,
such email accounts will be rendered void and unusable by any Party. Following
the execution of this Agreement, any other operational intellectual property
identified on Schedule 7.9.2 including phone numbers as noted above and
the domain name counselrb.com will belong to Executive and to Adam Reich;
provided that no right to any trademark or trade name of Company or its
Affiliates is transferred. Promptly following execution of this Agreement,
Company will transfer the domain name counselrb.com to GoDaddy Account #
66562729 with the Administrative Name reichbros.com. Upon such transfer, Company
will notify Ron Schinik at Rschinik@reichbros.com that the transfer has
been completed. Executive will cease and cause his Affiliates to cease all use
of the term “Counsel” in any domain name on or before September 30, 2013.

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     8. Representations and
Warranties.

          8.1
Executive and Affiliates. Executive and his Affiliates jointly and
severally represent and warrant to Company and its Affiliates that the following
representations and warranties are true, correct and complete as of the date
hereof and will be true, correct and complete as of the execution of this
Agreement:

               8.1.1
Organization and Good Standing. Each Affiliate of Executive is an entity
duly formed, validly existing and in good standing under the laws of the state
of its organization. Executive and each of his Affiliates have full power and
authority to enter into this Agreement and carry out the transactions
contemplated hereby.

               8.1.2
Authorization. The execution, delivery and performance of this Agreement
by each Affiliate of Executive have been duly and validly authorized by such
Affiliate and by all other necessary entity action on the part of such
Affiliate. This Agreement constitutes the legal, valid and binding obligation of
Executive and each of his Affiliates, enforceable against Executive and his
Affiliates in accordance with its terms except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium and other similar
laws and equitable principles relating to or limiting creditors' rights
generally. 

               8.1.3
No Conflicts; Consents. The execution, delivery and performance of this
Agreement will not violate the provisions of, or constitute a breach or default
whether upon lapse of time and/or the occurrence of any act or event or
otherwise under (a) the certificate of incorporation or formation, operating
agreement or bylaws, or any other organizational document of any Affiliate of
Executive, (b) any law or regulation to which any Affiliate of Executive is
subject; (c) any contract to which Executive or any Affiliate is a party or is
subject; or (d) any order or decree of any court, arbiter or governmental
authority applicable to Executive or his Affiliates. Executive and his
Affiliates need not give any notice to, make any filing with, or obtain any
approval or consent of any third party in order to consummate the transactions
contemplated hereby.

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               8.1.4
Litigation. No lawsuit, governmental investigation or legal,
administrative, or arbitration action or proceeding is pending or threatened
against Executive or any of his Affiliates, that questions the validity of this
Agreement or seeks to prohibit, enjoin or otherwise challenge the consummation
of the transactions contemplated hereby. 

          8.2
Company and Affiliates. Company hereby represents and warrants to
Executive and his Affiliates that the following representations and warranties
are true, correct and complete as of the date hereof and will be true, correct
and complete as of the execution of this Agreement:

               8.2.1
Organization and Good Standing. Company is a corporation duly formed,
validly existing and in good standing under the laws of the State of Florida and
has full power and authority to enter into and carry out its obligations under
this Agreement. Company has full power and authority to enter into this
Agreement and to carry out the transactions contemplated hereby.

               8.2.2
Authorization. The execution, delivery and performance of this Agreement
by Company have been duly and validly authorized by Company and by all other
necessary corporate action on the part of Company. This Agreement constitutes
the legal, valid and binding obligation of Company, enforceable against Company
in accordance with its terms except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws and
equitable principles relating to or limiting creditors' rights generally. 

               8.2.3
No Conflicts; Consents. The execution, delivery and performance of this
Agreement will not violate the provisions of, or constitute a breach or default
whether upon lapse of time and/or the occurrence of any act or event or
otherwise under (a) the certificate of incorporation, bylaws or any other
organizational document of Company, (b) any law or regulation to which Company
is subject; (c) any contract to which Company or any Affiliate is a party or is
subject; or (d) any order or decree of any governmental authority applicable to
Company or its Affiliates. Other than Israel Discount Bank of New York, Company
and its Affiliates need not give any notice to, make any filing with, or obtain
any approval or consent of any third party in order to consummate the
transactions contemplated hereby.

               8.2.4
Litigation. No lawsuit, governmental investigation or legal,
administrative, or arbitration action or proceeding is pending or threatened
against Company or any of its Affiliates, that questions the validity of this
Agreement or seeks to prohibit, enjoin or otherwise challenge the consummation
of the transactions contemplated hereby.

     9. Survival.
The representations and warranties and covenants of the Parties contained in
this Agreement shall survive the execution of this Agreement and continue
thereafter.

     10.
Confidentiality. Except as required by applicable law,
each Party will keep confidential the terms of this Agreement and all
discussions and negotiations between the Parties regarding this Agreement.
Except as required by applicable law, no Party will discuss this Agreement or
the terms of this Agreement with anyone other than Executive’s spouse or the
Parties’ respective tax, accounting or legal advisors, except to say that the
terms were satisfactory to all concerned. If a Party discusses this
Agreement as allowed by the preceding sentence, they will inform the persons
with whom the Agreement is discussed that the terms and substance of this
Agreement must remain confidential. Notwithstanding the foregoing, the Parties
will mutually agree on a press release to be issued upon execution of this
Agreement. In addition, notwithstanding clause (ii) of Section 6.3, but subject
to the remainder of Section 6.3, (i) Executive may announce his new venture and
that Executive and the Transferred Employees have joined Executive’s new venture
and have separated from Company, (ii) Executive may state that Executive and
Company have separated on mutually agreed and amicable terms; (iii) Company may
issue communications confirming the departure of Executive and the Transferred
Employees; and (iv) Company may issue communications that Executive and the
Transferred Employees have separated on mutually agreed and amicable terms.

10

     11. Equitable
Relief. Each Party acknowledges that the performance of its
obligations under this Agreement are special, unique and of extraordinary
character, and that, in the event that such Party or its Affiliates breach,
threaten to breach or fail or refuse to perform any of their obligations under
this Agreement, irreparable injury to the other Parties will result. If a Party
or its Affiliates breaches, threatens to breach or fails or refuses to perform
any of its obligations under this Agreement, then each other Party will be
entitled to, in addition to any remedies at law for damages or other relief,
specific performance of such covenant or agreement hereunder, including
injunctive relief.

     12. Code Section
409A Compliance. This Agreement will be interpreted, operated and
administered in a manner intended to avoid the imposition of additional taxes
under Section 409A of the Code. Further, the Parties acknowledge and agree that
the form and timing of the payments and benefits to be provided pursuant to this
Agreement are intended to be exempt from, or to comply with, one or more
exceptions to the requirements of Section 409A of the Code. Notwithstanding any
provision of this Agreement to the contrary, Company, its Affiliates and each of
their respective officers, directors, employees and representatives, neither
represent nor warrant the tax treatment under any federal, state, local, or
foreign laws or regulations thereunder (individually and collectively referred
to as the “Tax Laws”) of any payment or benefits contemplated by this Agreement
including, but not limited to, when and to what extent such payments or benefits
may be subject to tax, penalties and interest under the Tax Laws. Executive
agrees to accept the potential application of the Tax Laws, including section
409A of the Code, to the tax and legal consequences of payments payable to the
Executive hereunder.

     13. Governing Law;
Dispute Resolution. This Agreement and all rights, duties, and
remedies hereunder will be governed by and construed and enforced in accordance
with the laws of the State of New York, without reference to its conflict of law
provisions. Exclusive venue for any action arising out of or related to this
Agreement will be in state or federal court located in the County of New York,
New York, and each party consents to the jurisdiction of such courts and waives
any defense based on lack of personal jurisdiction or inconvenient forum. EACH
PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATED TO THIS AGREEMENT
BE TRIED BY JURY. EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHT TO
DEMAND TRIAL BY JURY.

     14. No Admission of
Liability. No part of this Agreement is to be construed as an
admission of liability or any other form of wrongdoing by any of the Parties or
their Affiliates, and no part of this Agreement is to be construed as a release
or waiver of any claim or cause of action by any of the Parties or their
Affiliates.

11

     15. Conditions
Precedent. The obligation of Company and its Affiliates, on the
one hand, and the Executive and his Affiliates, on the other hand, to perform
the duties and covenants of Company and its Affiliates or the Executive and his
Affiliates, as appropriate, are subject in each instance to satisfaction of the
conditions precedent that Company and its Affiliates, on the one hand, and the
Executive and his Affiliates, on the other hand, have each complied in all
material respects with the relevant provisions of this Agreement and that the
representations and warranties of the Company and its Affiliates and of the
Executive and his Affiliates, as applicable, are true and correct on the
Separation Date.

     16. Further
Assurances. Each Party will use its commercially reasonable
efforts to take, or cause to be taken, all actions, and to do, or cause to be
done, and to assist and cooperate with the other Parties in doing, all things
necessary, proper or advisable to consummate, in the most expeditious manner
practicable, the transactions contemplated by this Agreement, including but not
limited to the execution and delivery of such further documents and instruments
and the taking of such other acts, as another Party may reasonably request in
order to effectuate the transactions contemplated by this Agreement. Each Party
will cause its Affiliates to comply with the terms of this Agreement as though
such Affiliates were parties to this Agreement, and each Party will be liable
for any failure of its Affiliates to comply with the terms of this
Agreement.

     17.
Severability. If any court of competent jurisdiction
determines that any of the covenants and agreements contained herein, or any
part thereof, is unenforceable because of the character, duration, or scope of
such provision, such court will have the power to reduce the duration or scope
of such provision or to strike such provision in its entirety, as the case may
be, and, in its modified or reduced form, this Agreement will then be
enforceable to the maximum extent permitted by applicable law. 

     18. Successors And
Assigns. Executive agrees that this Agreement will be binding
upon, and pass to the benefit of, the successors and assigns of Company and its
Affiliates. Any payments due to the Executive hereunder or rights accrued
hereunder will be payable to or enforceable by his estate or representative in
the event of his death or disability. No assignment or rights or delegation of
duties under this Agreement will relieve the assigning or delegating Party of
its obligations under this Agreement.

     19.
Amendments. This Agreement may not be amended or
modified other than by a written instrument signed by an authorized
representative of each Party. 

     20.
Interpretation. The section headings contained herein
are for reference purposes only and will not in any way affect the meaning or
interpretation of this Agreement. The terms and provisions of this Agreement are
the result of negotiations among the parties. Accordingly, no ambiguity in this
Agreement that may arise in the future will be interpreted against or adversely
to any of the Parties solely because that Party, or that Party’s representative,
was responsible for proposing or drafting said language, or any term of this
Agreement.

12

     21.
Counterparts. This Agreement may be executed in two or
more counterparts, each of which will be deemed an original, but all of which
will constitute one and the same instrument. Facsimile and .pdf signatures will
suffice as original signatures. 

     22. Entire
Agreement. Except for the Surviving Agreements and continuing
provisions of the terminated agreements, this Agreement sets forth the entire
agreement and understanding of the Parties relating to the subject matter hereof
and merges and supersedes all prior discussions, agreements, and understandings
of every kind and nature between the Parties hereto, and no Party will be bound
by any term or condition other than as expressly set forth or provided for in
this Agreement. This Agreement is for the sole benefit of the Parties, their
Affiliates, the Company Indemnified Parties and the Executive Indemnified
parties, and no other person, entity or organization will be deemed to be a
third party beneficiary of this Agreement.

(SIGNATURE PAGE FOLLOWS)

13

     The Parties have executed this
Agreement effective as of June 30, 2013. 

EXECUTIVE:

	/s/
      Jonathan Reich 	 
	Jonathan Reich 	 
	  	  	 
	CRB HOLDINGS: 	 
	 	 
	CRB HOLDINGS NY, LLC 	 
	 	 
	By: 	/s/
      Jonathan Reich 	 
	Its: 	President 	 
	  	  	 
	FORSONS: 	 
	 	 
	FORSONS EQUITY, LLC 	 
	 	 
	By: 	/s/
      Jonathan Reich 	 
	Its: 	President 	 
	  	  	 
	COMPANY: 	 
	 	 
	COUNSEL RB CAPITAL INC. 	 
	 	 
	By: 	/s/
      Stephen Weintraub 	 
	Its: 	EVP, Secretary & CFOAmerican Petro-Hunter, Inc.: Exhibit 10.27 - Filed by newsfilecorp.com

NEITHER, THE ISSUANCE AND SALE OF THE SECURITIES,
REPRESENTED BY THIS CERTIFICATE, NOR, THE SECURITIES INTO WHICH THESE SECURITIES
ARE CONVERTIBLE HAVE 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, IN A FORM GENERALLY ACCEPTABLE TO THE
COMPANY’S LEGAL COUNSEL, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(ii) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

	 	 	 	 
	 		  	 
	 	Principal Amount: 	$71,000.00 	 
	 		  	 
	 	Original Issue Date: 	March 4, 2013 	 
	 		  	 
	 	Exchange Date: 	April 25, 2013 	 
	 		  	 
	 	Maturity Date: 	September 4, 2013 	 

CONVERTIBLE PROMISSORY NOTE 

            FOR
VALUE RECEIVED, AMERICAN PETRO-HUNTER, INC., a Nevada corporation (hereinafter
called “Borrower” or the “Company”), hereby promises
to pay to MAGNA GROUP, LLC, (the “Holder”) or order, without
demand, the aggregate principal amount of SEVENTY-ONE THOUSAND DOLLARS  ($71,000.00) (the “Principal Amount”), together with
interest thereon from March 4, 2013 (the “Original Issue
Date”), payable on September 4, 2013 (the “Maturity
Date”). Interest shall accrue at a rate of twelve percent (12%) per
annum, compounded annually. 

            This
Convertible Promissory Note (including all convertible promissory notes issued
in exchange, transfer or replacement hereof, this “Note”) is
issued in exchange for an outstanding Convertible Promissory Note, dated as of
the Original Issue Date (as set forth above), with an original principal amount
of U.S. $140,000.00 and an outstanding principal plus accrued but unpaid
interest amount as of the calendar day immediately preceding the Exchange Date
(as set forth above) of U.S. $71,000.00, (the “Existing
Note”), issued pursuant to the Assignment Agreement, dated as of March
4, 2013, by and between the Holder and the Borrower (the “Assignment
Agreement”), but shall not, except as set forth herein or in the
Exchange Agreement (as defined below), constitute a release of any claim under
any document or transaction contemplated by the Assignment Agreement. This Note
is issued in exchange for the Existing Note pursuant to that certain Exchange
Agreement, dated as of the Exchange Date (as set forth above), by and between
the Holder and the Borrower (the “Exchange Agreement”). Unless
otherwise separately defined herein, all capitalized terms used in this Note
shall have the same meaning as is set forth in the Purchase Agreement. The
following terms shall apply to this Note: 

ARTICLE I 
GENERAL PROVISIONS 

            1.1       
Conversion Privileges. The conversion privileges set forth in Article II
shall remain in full force and effect immediately from the date hereof and until
Note is paid in full regardless of the occurrence of an Event of Default but
subject to Article II. The Principal Amount of Note together with all unpaid
interest accrued thereon and any other amounts payable hereunder, or such
portion thereof, that has not previously been converted into common stock,
$0.001 par value, of the Company (the “Common Stock”) in
accordance with Article II hereof, if any, shall be payable in full on the
Maturity Date. 

           
1.2        Payment of Interest. There
shall be no periodic payments of interest on this Note. 

ARTICLE II 
CONVERSION RIGHTS 

            The
Holder shall have the right to convert the Principal Amount together with all
unpaid interest accrued thereon of this Note into shares of the Borrower’s
Common Stock as set forth below. 

           
2.1        Conversion into the Borrower’s
Common S tock . 

                          (a)       
Conversion Price. The conversion price (the “Conversion
Price”) in effect on any date of conversion shall be equal to $0.008
(subject to equitable adjustments for stock splits, stock dividends or rights offerings by the
Borrower relating to the Borrower’s securities or the securities of any
subsidiary of the Borrower, combinations, recapitalization, reclassifications,
extraordinary distributions and similar events). 

2

                          (b)       
Conversion. The Holder shall have the option, but shall not be required,
to convert all or a portion of the Note into a number of fully paid and
non-assessable shares of Common Stock (the “Conversion Shares”).
The number of Conversion Shares issuable upon a conversion hereunder shall be
determined by the quotient obtained by dividing (x) the outstanding Principal
Amount together with all unpaid interest accrued thereon of this Note to be
converted by (y) the Conversion Price. 

                          (c)       
Mechanics of Conversion. As a condition to effecting the conversion set
forth in Section 2.1(b) above, the Holder shall properly complete and deliver to
the Company a Notice of Conversion, a form of which is annexed hereto as
Exhibit A (the “Notice of Conversion”), which notice must
be received by the Company at least one (1) Trading Day prior to the Maturity
Date. The Notice of Conversion shall set forth the Principal Amount together
with all unpaid interest accrued thereon of this Note to be converted and the
date on which such conversion shall be effected (such date, the
“Conversion Date”). If no Conversion Date is specified in a Notice
of Conversion, the Conversion Date shall be the date that such Notice of
Conversion is deemed delivered hereunder. Upon timely delivery to the Borrower
of the Notice of Conversion, certificates evidencing that number of shares of
Common Stock for the portion of the Note converted in accordance herewith shall
be transmitted by the Company’s transfer agent to the Holder by crediting the
account of the Holder’s prime broker with The Depository Trust Company through
its Deposit / Withdrawal at Custodian system if the Company is then a
participant in such system and either (A) there is an effective registration
statement permitting the issuance of the Conversion Shares to, or resale of the
Conversion Shares by, the Holder or (B) the shares are eligible for resale by
the Holder without volume or manner-of-sale limitations pursuant to Rule 144,
and otherwise by physical delivery to the address specified by the Holder in the
Notice of Conversion by the date that is three (3) Trading Days after the
Conversion Date (such third day being the “Share Delivery Date”).

3

                         
(d)        Obligation to Deliver
Conversion Shares Absolute; Certain Remedies. 

                                        (i)       
Obligation Absolute. The Company’s obligations to issue and deliver the
Conversion Shares upon conversion of this Note in accordance with the terms
hereof are absolute and unconditional, irrespective of any action or inaction by
the Holder to enforce the same, any waiver or consent with respect to any
provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other Person
of any obligation to the Company or any violation or alleged violation of law by
the Holder or any other Person, and irrespective of any other circumstance which
might otherwise limit such obligation of the Company to the Holder in connection
with the issuance of such Conversion Shares; provided, however, that such
delivery shall not operate as a waiver by the Company of any such action the
Company may have against the Holder. In the absence of such injunction, the
Company shall issue Conversion Shares or, if applicable, cash, upon a properly
noticed conversion. 

                                        (ii)       
Compensation for Buy-In on Failure to Timely Deliver Certificates Upon
Conversion. In addition to any other rights available to the Holder, if the
Company fails for any reason to deliver to the Holder such certificate or
certificates by the Share Delivery Date pursuant to Section 2.1(c), and if after
such Share Delivery Date the Holder is required by its brokerage firm to
purchase (in an open market transaction or otherwise), or the Holder’s brokerage
firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Conversion Shares which the Holder was entitled to
receive upon the conversion relating to such Share Delivery Date (a
“Buy-In”), then the Company shall (A) pay in cash to the Holder
(in addition to any other remedies available to or elected by the Holder) the
amount, if any, by which (x) the Holder’s total purchase price (including any
brokerage commissions) for the Common Stock so purchased exceeds (y) the product
of (1) the aggregate number of shares of Common Stock that the Holder was
entitled to receive from the conversion at issue multiplied by (2) the actual
sale price at which the sell order giving rise to such purchase obligation was
executed (including any brokerage commissions) and (B) at the option of the
Holder, either reissue (if surrendered) this Note in a Principal Amount equal to
the Principal Amount of the attempted conversion (in which case such conversion
shall be deemed rescinded) or deliver to the Holder the number of shares of
Common Stock that would have been issued if the Company had timely complied with its delivery requirements
under Section 2.1(c) (the “Buy- In Liquidated Damages”). For
example, if the Holder purchases Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted conversion of this Note
with respect to which the actual sale price of the Conversion Shares (including
any brokerage commissions) giving rise to such purchase obligation was a total
of $10,000 under clause (A) of the immediately preceding sentence, the Company
shall be required to pay the Holder $1,000. The Holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the
Buy-In and, upon request of the Company, evidence of the amount of such loss. 

4

                                        (iii)       
Rescission. If, in the case of any Notice of Conversion, such certificate
or certificates are not delivered to or as directed by the applicable Holder by
the Share Delivery Date, the Holder shall be entitled to elect by written notice
to the Company at any time on or before its receipt of such certificate or
certificates, to rescind such Conversion, in which event the Company shall
promptly return to the Holder any original Note delivered to the Company and the
Holder shall promptly return to the Company the Common Stock certificates issued
to such Holder pursuant to the rescinded Conversion Notice. 

                          (e)       
Adjustment. The number and kind of shares or other securities to be
issued upon conversion determined pursuant to Section 2.1(b), shall be subject
to adjustment, from time to time, upon the happening of certain events while
this conversion right remains outstanding, as follows: 

5

                                        (i)        Fundamental Transaction. If, at any time while this Note is outstanding,
(i) the Company, directly or indirectly, in one or more related transactions
effects any merger or consolidation of the Company with or into another Person,
(ii) the Company, directly or indirectly, effects any sale, lease, license,
assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct
or indirect, purchase offer, tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to sell, tender or exchange their shares for other
securities, cash or property and has been accepted by the holders of 50% or more
of the outstanding Common Stock, (iv) the Company, directly or indirectly, in
one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property, or (v) the Company, directly
or indirectly, in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with
another Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or associated or
affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent conversion of this Note, the
Holder shall have the right to receive, for each Conversion Share that would
have been issuable upon such conversion immediately prior to the occurrence of
such Fundamental Transaction (without regard to any limitation in Section 2.3 on
the conversion of this Note), the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction
by a holder of the number of shares of Common Stock for which this Note is
convertible immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2.3 on the conversion of this Note). For purposes of
any such conversion, the determination of the Conversion Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one (1) share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Conversion Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any conversion of this Note following such Fundamental
Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company
under this Note and the other Transaction Documents in accordance with the
provisions of this Section 2(e)(i) pursuant to written agreements in form and
substance reasonably satisfactory to the Holder and approved by the Holder
(without unreasonable delay) prior to such Fundamental Transaction and shall, at
the option of the holder of this Note, deliver to the Holder in exchange for this Note a security of the
Successor Entity evidenced by a written instrument substantially similar in form
and substance to this Note which is convertible for a corresponding number of
shares of capital stock of such Successor Entity (or its parent entity)
equivalent to the shares of Common Stock acquirable and receivable upon
conversion of this Note (without regard to any limitations on the conversion of
this Note) prior to such Fundamental Transaction, and with a conversion price
which applies the conversion price hereunder to such shares of capital stock
(but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such conversion price being
for the purpose of protecting the economic value of this Note immediately prior
to the consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder. Upon the occurrence of any
such Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Note and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may
exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Note and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company
herein. 

6

                                        (ii)       
Stock Dividends and Stock Splits. If the Company, at any time while this
Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution
or distributions payable in shares of Common Stock on shares of Common Stock or
any Common Stock Equivalents (which, for avoidance of doubt, shall not include
any shares of Common Stock issued by the Company upon conversion of, or payment
of interest on, the Note), (ii) subdivides outstanding shares of Common Stock
into a larger number of shares, (iii) combines (including by way of a reverse
stock split) outstanding shares of Common Stock into a smaller number of shares
or (iv) issues, in the event of a reclassification of shares of the Common
Stock, any shares of capital stock of the Company, then the Conversion Price
shall be multiplied by a fraction of which the numerator shall be the number of
shares of Common Stock (excluding any treasury shares of the Company)
outstanding immediately before such event, and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event.
Any adjustment made pursuant to this Section shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or re classification.

7

                          (f)       
Notice of Adjustment. Upon the occurrence of an event specified in
Section 2.1(e), the Borrower shall promptly mail to the Holder a notice setting
forth the adjustment and setting forth a statement of the facts requiring such
adjustment, provided that any additional notice requirements set forth in
Section 2.1(e)(i) shall also be applicable. 

                         
(g)        Reservation of Shares. At
such time when necessary, Borrower: 

                                        (i)       
will reserve from its authorized and unissued Common Stock a sufficient amount
of Common Stock to permit the full conversion of Note; 

                                        (ii)       
represents that upon issuance, such shares will be duly and validly issued,
fully paid and non-assessable; and 

                                        (iii)       
agrees that its issuance of Note shall constitute full authority to its
officers, agents, and transfer agents who are charged with the duty of executing
and issuing stock certificates to execute and issue the necessary certificates
for shares of Common Stock upon the conversion of Note. 

            2.2       
Method of Conversion. Note may be converted by the Holder, in whole or in
part, as described in Section 2.1(a) hereof and the Purchase Agreement. Upon
partial conversion of Note, a new Note containing the same date and provisions
of Note shall, at the request of the Holder, be issued by the Borrower to the
Holder for the principal balance of Note and interest which shall not have been
converted or paid. 

            2.3       
Limitations on Conversion. Notwithstanding anything to the contrary
contained in this Note, this Note shall not be convertible by the Holder hereof,
and the Company shall not effect any conversion of this Note or otherwise issue
any shares of Common Stock pursuant hereto, to the extent (but only to the
extent) that the Holder or any of its affiliates would beneficially own in
excess of 4.99% (the “Maximum Percentage”) of the Common Stock. To
the extent the above limitation applies, the determination of whether this Note
shall be convertible (vis-à-vis other convertible, exercisable or exchangeable
securities owned by the Holder) shall, subject to such Maximum Percentage
limitation, be determined on the basis of the first submission to the Company for conversion, exercise or
exchange (as the case may be). No prior inability to convert this Note, or to
issue shares of Common Stock, pursuant to this paragraph shall have any effect
on the applicability of the provisions of this paragraph with respect to any
subsequent determination of convertibility. For purposes of this paragraph,
beneficial ownership and all determinations and calculations (including, without
limitation, with respect to calculations of percentage ownership) shall be
determined in accordance with Section 13(d) of the Securities Act of 1934, as
amended, and the rules and regulations promulgated thereunder. The provisions of
this paragraph shall be implemented in a manner otherwise than in strict
conformity with the terms of this paragraph to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the intended Maximum
Percentage beneficial ownership limitation herein contained or to make changes
or supplements necessary or desirable to properly give effect to such Maximum
Percentage limitation. The limitations contained in this paragraph shall apply
to a successor Holder of this Note. The holders of Common Stock shall be third
party beneficiaries of this paragraph and the Company may not waive this
paragraph without the consent of holders of a majority of its Common Stock. For
any reason at any time, upon the written or oral request of the Holder, the
Company shall within two (2) Trading Days confirm orally to the Holder and, if
requested, in writing to the Holder the number of shares of Common Stock then
outstanding, including by virtue of any prior conversion or exercise of
convertible or exercisable securities into Common Stock, including, without
limitation, pursuant to this Note or securities issued pursuant to the Purchase
Agreement. 

8

ARTICLE III 
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 the
outstanding Principal Amount plus all other amounts payable under this Note
immediately due and payable in cash at the Mandatory Default Amount (as defined
below), upon demand: 

            3.1       
Failure to Pay. The Borrower fails to pay the Principal Amount or other
sum due under Note when due. 

            3.2       
Breach of Covenant. The Borrower breaches any material covenant of the
Purchase Agreement or Note in any material respect and such breach, if subject
to cure, continues for a period of FIFTEEN (15) Trading Days after
written notice to the Borrower from the Holder. 

9 

            3.3       
  Breach of Representations and Warranties. Any material representation or
warranty of the Borrower made, in the Purchase Agreement or in any certificate
delivered pursuant to the Purchase Agreement, said statement or certificate
given in writing pursuant hereto or in connection therewith shall be false or
misleading in any material respect as of the date made and the Closing Date.

            3.4       
Receiver or Trustee. The 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. 

            3.5       
Judgments. Any money judgment, writ or similar final process shall be
entered or filed against Borrower or any of its property or other assets for
more than ONE MILLION DOLLARS ($1,000,000.00) and shall remain unvacated,
unbonded or unstayed for a period of FORTY-FIVE (45) days. 

            3.6       
Bankruptcy. Bankruptcy, reorganization, insolvency proceeding,
liquidation proceedings or other proceedings or relief under any bankruptcy law
or any law, or the issuance of any notice in relation to such event, for the
relief of debtors shall be instituted by or against the Borrower and if
instituted against them are not dismissed within FORTY-FIVE (45) Trading Days of
initiation. 

            3.7       
Non-Payment. A default by the Borrower under any one or more obligations
in an aggregate monetary amount in excess of ONE MILLION DOLLARS ($1,000,000.00)
for more than TWENTY (20) Trading Days after notice to the Borrower from the
Holder, unless the Borrower is contesting the validity of such obligation in
good faith and has segregated cash funds equal to not less than one-half of the
contested amount. 

            3.8       
Failure to Deliver Common Stock or Replacement Note. Borrower’s failure
to deliver Common Stock to the Holder pursuant to and in the form required by
Note within TEN (10) Trading Days after the applicable Conversion Date. 

10

            3.9       
Reservation Default. Failure by the Borrower to have reserved for
issuance upon conversion of this Note the amount of Common stock as set forth in
this Note for more than NINETY (90) days after notice to the Borrower from the
Holder. 

            Upon
the payment in full of the Mandatory Default Amount, the Holder shall promptly
surrender this Note to or as directed by the Company. In connection with such
acceleration described herein, the Holder need not provide, and the Company
hereby waives, any presentment, demand, protest or other notice of any kind, and
the Holder may immediately and without expiration of any grace period enforce
any and all of its rights and remedies hereunder and all other remedies
available to it under applicable law. For purposes of this Article III,
“Mandatory Default Amount” means the sum of (a) the greater of (i)
the outstanding Principal Amount of this Note, divided by the Conversion Price
on the date the Mandatory Default Amount is either (A) demanded (if demand or
notice is required to create an Event of Default) or otherwise due or (B) paid
in full, whichever has a lower Conversion Price, multiplied by the VWAP on the
date the Mandatory Default Amount is either (x) demanded or otherwise due or (y)
paid in full, whichever has a higher VWAP, or (ii) 100% of the outstanding
principal amount of this Note, and (b) all other amounts, costs, expenses and
liquidated damages due in respect of this Note. 

ARTICLE IV 
NEGATIVE COVENANTS 

            4.1       
Negative Covenants. As long as any portion of this Note remains
outstanding, unless the Holder shall have otherwise given prior written consent,
the Company shall not, and shall not permit any of the Subsidiaries to, directly
or indirectly: 

                          (a)       
other than Permitted Indebtedness (as defined below), enter into, create, incur,
assume, guarantee or suffer to exist any secured indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to
any of its property or assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom; 

                          (b)       
other than Permitted Liens (as defined below), enter into, create, incur, assume
or suffer to exist any Liens of any kind, on or with respect to any of its
property or assets now owned or hereafter acquired or any interest therein or
any income or profits therefrom; 

11

                          (c)       
repay, repurchase or offer to repay, repurchase or otherwise acquire for cash
more than a de minimis number of shares of its Common Stock other than
repurchases of Common Stock of departing officers and directors of the Company,
provided that such repurchases shall not exceed an aggregate of $150,000 during
the term of this Note; or 

                         
(d)        pay cash dividends or
distributions on any equity securities of the Company. 

           
4.2        Definitions. For the
purpose of this Note, the following definitions shall apply: 

                          (a)       
“Permitted Indebtedness” means (i) the Indebtedness evidenced by
the Note, (ii) the Indebtedness existing on the Original Issue Date and set
forth on Schedule 5.19 attached to the Purchase Agreement, (iii)
unsecured Indebtedness incurred by the Company, which Indebtedness is not senior
in rank to the Note and does not mature prior to six months from the issue date
of such Indebtedness, (iv) Indebtedness secured by Permitted Liens, and (v)
extensions, refinancings and renewals of any items in clauses (i) through (iv)
above, provided that the principal amount is not increased (other than with
respect to the addition of existing or future interest due and payable
thereunder to the principal thereunder) or the terms modified to impose
materially more burdensome terms upon the Company or its Subsidiaries, as the
case may be. 

                          (b)       
“Permitted Lien” means the individual and collective reference to
the following: (i) any Lien for taxes not yet due or delinquent or being
contested in good faith by appropriate proceedings for which adequate reserves
have been established in accordance with GAAP, (ii) any statutory Lien arising
in the ordinary course of business by operation of law with respect to a
liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen's liens, mechanics' liens and other similar liens,
arising in the ordinary course of business with respect to a liability that is
not yet due or delinquent or that are being contested in good faith by
appropriate proceedings, (iv) Liens (A) upon or in any equipment acquired or
held by the Company or any of its Subsidiaries to secure the purchase price of
such equipment or indebtedness incurred solely for the purpose of financing the
acquisition or lease of such equipment, or (B) existing on such equipment at the
time of its acquisition, provided that the Lien is confined solely to the
property so acquired and improvements thereon, and the proceeds of such
equipment, (v) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type
described in clause (iv) above, provided that any extension, renewal or
replacement Lien shall be limited to the property encumbered by the existing
Lien and the principal amount of the Indebtedness being extended, renewed or
refinanced does not increase, (vi) leases or subleases and licenses and
sublicenses granted to others in the ordinary course of the Company's business,
not interfering in any material respect with the business of the Company and its
Subsidiaries taken as a whole, (vii) Liens in favor of customs and revenue
authorities arising as a matter of law to secure payments of custom duties in
connection with the importation of goods, (viii) Liens arising from judgments,
decrees or attachments in circumstances not constituting an Event of Default,
(ix) Liens incurred in connection with Permitted Indebtedness under clause (i)
and, solely to the extent existing as of the Original Issue Date, clause (ii) of
the definition thereof (including any extensions, refinancings and renewals of
such Indebtedness that constitute Permitted Indebtedness). 

12

ARTICLE V 
REDEMPTION RIGHTS 

            5.1       
Optional Redemption Right. Subject to the provisions of this Article V,
at any time (a) within ninety (90) days after the Effective Date, the Company
may deliver a notice to the Holder (an “Optional Redemption
Notice” and the date such notice is deemed delivered hereunder, the
“Optional Redemption Notice Date”) of its irrevocable election to
redeem all of the then outstanding principal amount together with all unpaid
interest accrued thereon of this Note for cash at a redemption price equal to
115% multiplied by all of the then outstanding principal amount together with
all unpaid interest accrued thereon of this Note, on the 20th Trading
Day following the Optional Redemption Notice Date (such date, the
“Optional Redemption Date”, such 20 Trading Day period, the
“Optional Redemption Period” and such redemption, the
“Optional Redemption”), and (b) after ninety (90) days after the
Effective Date, the Company may deliver an Optional Redemption Notice of its
irrevocable election to redeem all of the then outstanding principal amount
together with all unpaid interest accrued thereon of this Note for cash at a
redemption price equal to 150% multiplied by all of the then outstanding
principal amount together with all unpaid interest accrued thereon of this Note,
on the Optional Redemption Date. The Optional Redemption Amount is payable in
full on the Optional Redemption Date. The Company may only effect an Optional
Redemption if each of the Equity Conditions (as defined below) shall have been met (unless
waived in writing by the Holder) on each Trading Day during the period
commencing on the Optional Redemption Notice Date through to the Optional
Redemption Date and through and including the date payment of the Optional
Redemption Amount is actually made in full. If any of the Equity Conditions
shall cease to be satisfied at any time during the Optional Redemption Period,
then the Holder may elect to nullify the Optional Redemption Notice by notice to
the Company within 3 Trading Days after the first day on which any such Equity
Condition has not been met in which case the Optional Redemption Notice shall be
null and void, ab initio. The Company covenants and agrees that it
will honor all Notices of Conversion tendered from the time of delivery of the
Optional Redemption Notice through the date all amounts owing thereon are due
and paid in full. “Equity Conditions” means, during the period in
question, (a) the Company shall have duly honored all conversions and
redemptions scheduled to occur or occurring by virtue of one or more Notices of
Conversion of the Holder, if any, (b) the Company shall have paid all liquidated
damages and other amounts owing to the Holder in respect of this Note, (c)(i)
there is an effective Registration Statement pursuant to which the Holder is
permitted to utilize the prospectus thereunder to resell all of the Conversion
Shares issuable upon conversion of such portion of this Note subject to an
Optional Redemption (and the Company believes, in good faith, that such
effectiveness will continue uninterrupted for such period) or (ii) all of the
Conversion Shares issuable upon conversion of such portion of this Note subject
to an Optional Redemption may be resold pursuant to Rule 144 during such period,
(d) the Common Stock is trading on a Trading Market and all of the shares
issuable pursuant to the Transaction Documents are listed or quoted for trading
on such Trading Market (and the Company believes, in good faith, that trading of
the Common Stock on a Trading Market will continue uninterrupted for the
foreseeable future), (e) there is a sufficient number of authorized but unissued
and otherwise unreserved shares of Common Stock for the issuance of all of the
Conversion Shares issuable upon conversion of such portion of this Note being
redeemed at such time, (f) there is no existing Event of Default and, to the
actual knowledge of the Company, no existing event which, with the passage of
time or the giving of notice, would constitute an Event of Default, (g) the
issuance of the shares issuable to the Holder upon conversion of such portion of
this Note subject to an Optional Redemption would not violate the limitations
set forth in Section 2.3 under this Note, (h) there has been no public
announcement of a pending or proposed Fundamental Transaction that has not been
consummated or abandoned, and (i) the applicable Holder is not in possession of any information provided by the Company that
constitutes, or may constitute, material non-public information. 

13

            5.2        Right to Convert. Notwithstanding the foregoing, the Holder may elect to
convert the outstanding principal amount of the Note subject to an Optional
Redemption Notice pursuant to Article II at any time prior to actual payment in
cash for any redemption under this Section 5 by the delivery of an irrevocable
Notice of Conversion to the Company. 

14

ARTICLE VI 
UNSECURED NOTE 

           
6.1        Unsecured Note. Note is an
unsecured obligation of the Borrower. 

ARTICLE VII 
MISCELLANEOUS 

            7.1       
Failure or Indulgence Not Waiver. No failure or delay on the part of
Holder hereof in the exercise of any power, right or privilege hereunder shall
operate as a waiver 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. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available. 

            7.2       
Notices. All notices, requests, demands, consents, instructions or other
communications required or permitted hereunder shall be in writing and either
faxed, mailed or delivered to each party at the respective addresses of the
parties as set forth in the Purchase Agreement or at such other address or
facsimile number as a party shall furnished to the other party in writing. All
such notices and communications shall be effective (a) when sent by Federal
Express or other overnight service of recognized standing on the Trading Day
following the deposit with such service; (b) when mailed, by registered or
certified mail, first class postage prepaid and addressed as aforesaid through
the United States Postal Service, upon receipt; (c) when delivered by hand, upon
delivery; and/or (d) when faxed, upon confirmation of receipt. 

            7.3       
Amendment Provision. No provision of this Note may be modified or amended
without the prior written consent of the Holder. 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, then as so amended or
supplemented. 

15

            7.4       
Assignability. Note shall be binding upon the Borrower and its successors
and assigns, and shall inure to the benefit of the Holder and its successors and
assigns. 

            7.5       
Cost of Collection. If default is made in the payment of Note, Borrower
shall pay the Holder hereof reasonable costs of collection, including reasonable
attorneys’ fees. 

            7.6       
Governing Law. Note shall be governed by and construed in accordance with
the laws of the State of New York, including, but not limited to, New York
statutes of limitations. Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the civil or state courts of New York or in the federal courts located in the
State and county of New York. 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. In the event that any provision of
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 to 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 Note. 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, or to enforce a judgment or other decision in favor of the Holder.
This Note shall be deemed an unconditional obligation of Borrower for the
payment of money and, without limitation to any other remedies of Holder, may be
enforced against Borrower by summary proceeding pursuant to New York Civil
Procedure Law and Rules Section 3213 or any similar rule or statute in the
jurisdiction where enforcement is sought. For purposes of such rule or statute,
any other document or agreement to which Holder and Borrower are parties or
which Borrower delivered to Holder, which may be convenient or necessary to
determine Holder’s rights hereunder or Borrower’s obligations to Holder are
deemed a part of Note, whether or not such other document or agreement was
delivered together herewith or was executed apart from Note. 

16

            7.7       
Construction. Each party acknowledges that its legal counsel participated
in the preparation of Note and, therefore, stipulates that the rule of
construction that ambiguities are to be resolved against the drafting party
shall not be applied in the interpretation of Note to favor any party against
the other. 

            7.8       
Shareholder Status. The Holder shall not have rights as a shareholder of
the Borrower with respect to unconverted portions of Note. However, the Holder
will have the rights of a shareholder of the Borrower with respect to the Shares
of Common Stock to be received after delivery by the Holder of a Conversion
Notice to the Borrower. 

            7.9       
Non-Business Days. Whenever any payment or any action to be made shall be
due on a Saturday, Sunday or a public holiday under the laws of the State of New
York, such payment may be due or action shall be required on the next succeeding
Trading Day and, for such payment, such next succeeding day shall be included in
the calculation of the amount of accrued interest payable on such date. 

[SIGNATURES ON THE FOLLOWING PAGE] 

17 

            IN
WITNESS WHEREOF, Borrower has caused Note to be signed in its name by
an authorized officer as of the 24th day of April2012. 

AMERICAN PETRO-HUNTER, INC. 

 

By: /s/ Robert B. McIntosh 

Name: Robert B. McIntosh 

Title: Chief Executive Officer

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