Document:

EPOD Solar Inc.: Exhibit 4.2 - Filed by newsfilecorp.com

Exhibit 4.2

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
SAID ACT, OR AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY
SATISFACTORY TO COUNSEL TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.” 

Original Issue Date: April 29, 2011 
Conversion Price:
US $1.40 

CONVERTIBLE DEBENTURE
DUE APRIL 29, 2014

FOR VALUE RECEIVED, EPOD Solar Inc., a Nevada Company
(hereinafter called the "Borrower" or “Company”), hereby promises to pay to the
order of ____________________or its registered assigns (the "Holder") the sum of
$______US Dollars(__________USD), on April 29, 2014 (the "Maturity Date"), or
such earlier date as this Debenture is required or permitted to be repaid as
provided hereunder, and to pay interest to the Holder on the aggregate
unconverted and then outstanding principal amount of this Debenture in
accordance with the provisions hereof. This Convertible Debenture (including all
Convertible Debentures issued in exchange, transfer or replacement hereof, this
"Debenture") is a duly authorized issue of Debentures of the Company, designated
as its Convertible Debentures due April 29, 2014 (the "Debentures") issued
pursuant to a Securities Purchase Agreement entered into between the Company and
the Holder on ____, 2011 (“Securities Purchase Agreement”).

Except as otherwise expressly provided
herein, including but not limited to Section 7(c) below, this Debenture may not
be prepaid by the Borrower. All payments due hereunder (to the extent not
converted into Units as defined in Section 2(a)(i) herein, of the Borrower in
accordance with the terms hereof shall be made in lawful money of the United
States and any accrued Interest shall be added to the principal amount of this
Debenture, in which event Interest shall accrue thereon in accordance with the
terms of this Debenture and such additional principal amount shall be
convertible into Common Stock in accordance with the terms of this Debenture.
All payments shall be made at the address of the Holder as designated by the
Holder or at such address as the Holder shall hereafter give to the Borrower by
written notice made in accordance with the provisions of this Debenture.
Whenever any amount expressed to be due by the terms of this Debenture is due on
any day which is not a Business Day (as defined below), the same shall instead
be due on the next succeeding day which is a Business Day.

This Debenture is subject to the following additional
provisions: 

Section 1.     Interest. Subject to
the terms and conditions of this Debenture, The Company shall pay interest
(“Interest”) to the Holder on the aggregate unconverted and then outstanding
principal amount of this Debenture at the rate of ten percent (10%) per annum
(the “Interest Rate”) from the Original Issue Date (as defined herein) until the
same becomes due and payable at maturity. Interest shall commence accruing on
the Original Issue Date, shall be computed on the basis of a 365-day year and
the actual number of days elapsed and shall be payable on an annual basis every
twelve (12) months, in accordance with the terms hereof. The Company shall have
the option of paying the Holder the amount of interest due and payable in cash
or in Shares of the Company pursuant to the terms of conversion herein and the
price per Share shall be equal to the average price per Share in the ten trading
days preceding the date on which the Interest becomes due and payable. The
amount of interest payable in respect of the Debenture shall be reduced
proportionately in the event of its partial or full conversion prior to
maturity.

Section 2.     Conversion. 

	 	  	(a) Conversion Right.

(i) Conversion Timing and Amount. Subject to the
limitations on Conversion contained herein, the record Holder of this Debenture
shall have the right (a “Conversion Right”) from time to time, and at any time
on or after the Original Issue Date hereof and prior to the Maturity Date, to
convert any part or all of the Debenture into a total of up to _____
(__________) units ((“Units” and individually each a or "Unit") of the Company
at the price of USD $1.40 (“Conversion Price”) per Unit. Each Unit shall be
comprised of the following: (i) 1 (one) share of the Company’s common stock
(“Common Stock”) par value $0.001 per share (“Share” and collectively
“Shares”); and (ii) 1⁄2 (one half) of one stock purchase warrant . Each whole
stock purchase warrant (“Warrant” and collectively “Warrants”) is exercisable at
any time prior to the Maturity Date, at an exercise price of US $2.00 per Share,
to purchase 1 (one) additional Share. Any Shares issuable pursuant to the
exercise of the Conversion Right shall be issued as fully paid and
non-assessable shares of Common Stock, or any shares of capital stock or other
securities of the Company into which such Common Stock shall hereafter be
changed or reclassified, at the Conversion Price determined as provided herein
(a "Conversion"). The Conversion Rights set forth in this Section 2 shall remain
in full force and effect immediately from the Original Issue Date until the
Debenture is paid in full. 

(ii) Limitation On Conversion. Notwithstanding
the above, in no event shall the Holder be entitled to convert any portion of
this Debenture in excess of that portion of this Debenture upon Conversion of
which the sum of (1) the number of shares of Common Stock beneficially owned by
the Holder and any applicable affiliates (other than shares of Common Stock
which may be deemed beneficially owned through the ownership of the unconverted portion of the Debenture or
the unexercised or unconverted portion of the Warrants or of any other security
of the Company subject to a limitation on Conversion or exercise analogous to
the limitations contained herein)(the “Beneficially Owned Shares”) and (2) the
number of shares of Common Stock issuable upon the Conversion of the portion of
the Debenture with respect to which the determination of this proviso is being
made would result in beneficial ownership by the Holder and its affiliates of
more than 4.99% (the “Maximum Percentage”) of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of
Common Stock issuable upon conversion of this Debenture held by the Holder (the
“Beneficial Ownership Limitation”). For purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined by the
Holder in accordance with Section 13(d) of the Exchange Act and Regulations
13D-G thereunder, except as otherwise provided in clause (1) of such proviso in
the immediately preceding sentence, and provided that the Beneficial Ownership
Limitation shall be conclusively satisfied if the applicable Notice of
Conversion includes a signed representation by the Holder, if requested by the
Company, that the issuance of the shares in such Notice of Conversion will not
violate the Beneficial Ownership Limitation, and the Company shall not be
entitled to require additional documentation of such satisfaction.

(iii) Calculation of Conversion Amount. The number of
Units to be issued upon each Conversion of this Debenture shall be determined by
dividing the Conversion Amount (as defined herein) by the applicable Conversion
Price. The term "Conversion Amount" means, with respect to any Conversion of the
Debenture, the sum of (i) the Principal Amount of the Debenture to be converted
in such Conversion, and (ii) at the Company’s discretion, any Interest accrued
and due. 

(b) Mechanics of Conversion. In order to convert the
Debentures into full shares of Common Stock and Warrants, the Holder shall
deliver a copy of the fully executed notice of conversion in the form on the
rear of the certificate evidencing the Debenture (‘Notice of Conversion’) to the
Company at the office of the Company which notice shall specify the amount of
the Debenture to be converted (together with a copy of the first page of each
Debenture to be converted) prior to Midnight, Eastern time (the ‘Conversion
Notice Deadline’) on the date of Conversion specified on the Notice of
Conversion and (ii) surrender the original Debenture(s); provided, however, that
the Company shall not be obligated to issue certificates evidencing the shares
of Common Stock issuable upon such conversion and Warrants unless either the
original Debentures are delivered to the Company as provided above, or the
Holder notifies the Company that such Debenture(s) have been lost, stolen or
destroyed. In the case of a dispute as the calculation of the Conversion Price,
the Company’s calculation shall be deemed conclusive absent manifest error. 

(i) Lost or Stolen Debentures. Upon receipt by the
Company of evidence of the loss, theft, destruction or mutilation of a
Debenture, and (in the case of loss, theft or destruction) indemnity or security
reasonably satisfactory to the Company, and upon
surrender and cancellation of the Debenture, if mutilated, the Company shall execute and deliver new Debenture(s) of like tenor and date. 

(ii) Delivery of Common Stock and Warrants upon Conversion. The Company shall issue and use its best efforts to deliver within a reasonable time after delivery to the Company of a Debenture and Notice of Conversion, or after provision for
security or indemnification required by (i) above, to such Holder of the Debenture at the address of the Holder on the books of the Company, a certificate for the number of shares of Common Stock and a number of Warrants to which the Holder shall be
entitled as aforesaid. 

(iii) No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of a Debenture. If any conversion of the Debenture would create a fractional share of Common Stock or a right to acquire a fractional share of
Common Stock, a cash adjustment will be made for the fractional interest. 

(iv) Date of Conversion. The date of which conversion occurs (the ‘Date of Conversion’) shall be deemed to be the date set forth in such Notice of Conversion, provided that the copy of the Notice of Conversion is delivered or faxed
to the Company before midnight, Pacific time, on the Date of Conversion, and (ii) that the original Debentures to be converted are surrendered, and received by the Company within five business days from the Date of Conversion. The person or persons
entitled to receive the shares of common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Common Stock on such date. If the original Debentures to be converted are not received
by the Transfer Agent or the Company within five business days after the Date of Conversion or if the facsimile of the Notice of Conversion is not received by the Company or its designated transfer agent prior to the Conversion Notice Deadline, the
Notice of Conversion, at the Company’s option, may be declared null and void. 

(c) Reservation of Stock Issuable Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Debentures, such
number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all then outstanding Debentures; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to
effect the conversion of all then outstanding Debentures, the Company will immediately take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for
such purpose. 

(d) Adjustment to Conversion Price.  

(i) Adjustment Due to Stock Split, Stock Dividend, Etc. If at any time when the Debentures are issued and outstanding, the number of outstanding shares of Common Stock is increased by a stock split, stock dividend, or other similar event, the
Fixed Conversion Price shall be proportionately reduced, or if the number of outstanding shares of Common Stock is decreased by a combination or
reclassification of shares, or other similar event, the Fixed Conversion Price
share be proportionately increased. 

(ii) Adjustment Due to Merger, Consolidation, Etc. If at
any time when the Debentures are issued and outstanding, there shall be any
merger, amalgamation, consolidation, exchange of shares, recapitalization,
reorganization, or other similar event, as a result of which shares of Common
Stock of the Company shall be changed into the same or a different number of
shares of another class or classes of stock or securities of the company or
another entity (“Material Transaction”), then the Holders of the Debentures
shall thereafter have the right to receive upon conversion of the Debentures,
upon the basis and upon the terms and conditions specified herein and in lieu of
the shares of Common Stock immediately theretofore issuable upon conversion,
such stock and/or securities which the Holder would have been entitled to
receive in such transaction had the Debentures been converted immediately prior
to the Material Transaction.

(iii) Anti-Dilution Pursuant to Share Issuances. If at
any time, when the Debentures are issued and outstanding the Company issues
Additional Securities (as defined below) (a “Dilutive Issuance”) the Company
shall adjust the Conversion Price (“Adjusted Conversion Price”) of this
Debenture using the following formula below.

“Additional Shares” shall mean all shares of Common Stock
issued by the Company other than (i) shares of Common Stock and/or options, to
employees, officers, or directors of, or consultants or advisors to, the Company
or any subsidiary pursuant to any stock option plans, that are approved by the
Board of Directors of the Company, (“ ESOP Shares Issuances”)

	 	X = 	Y (A) 
	 	  	   B 

	Where 	X = 	the Adjusted Conversion Price 
	  	Y = 	9,250,000 
	  	A = 	the Conversion Price 
	  	B = 	the total number of shares of Common Stock
      outstanding of the Company immediately following the Dilutive Issuance
      calculated on a fully diluted basis, excluding any ESOP Shares Issuances.
    
	 

(iv) Anti-Dilution Pursuant to Securities Issuances within
the context of a Financing. If at any time, when the Debentures are issued
and outstanding the Company undergoes an offering or financing (“Financing”)
which results in the issuance of Shares, debentures, or other convertible
securities at an exercise or conversion price that is equal to less than the Conversion
Price herein per Share (“Base Financing Price”), then the Conversion Price shall
be reduced and shall be equal to the Base Financing Price minus a twenty-five
percent (25%) discount (the “Percentage Discount”) (“Discounted Conversion
Price”). The Discounted Conversion Price shall be calculated using the following
formula: 

	 	A =      
      B     
	 	      
       (1 + C) 
	 	 
	Where 	A= 	Discounted Conversion Price 
	 	B= 	the Base Financing Price per Share 
	 	C= 	the Percentage Discount. 

Section 4.     No Voting Rights. The
Debentures shall not entitle the Holders thereof to any of the rights of a
stockholder of the Company, including without limitation, the right to vote, to
receive dividends and other distributions, or to receive any notice of, or to
attend meetings of stockholders or any other proceedings of the Company. 

Section 5.     Rule 144 Hold Period.
For purposes of Rule 144, it is intended, understood and acknowledged that
the Common Stock issuable upon Conversion of this Debenture shall be deemed to
have been acquired at the time the Debenture was issued. Moreover, it is
intended, understood and acknowledged that the holding period for the Common
Stock issuable upon Conversion of this Debenture shall be deemed to have
commenced on the date this Debenture was issued.

Section 6.     Agreement of the
Holder 

6.1     The Holder acknowledges that the
Shares are "restricted securities" within the meaning of the Securities Act and
will be issued to the Holder in accordance with the Securities Act. 

6.2     The Holder agrees not to engage in
hedging transactions with regard to the Shares unless in compliance with the
Securities Act. 

6.3     The Holder and the Company agree
that the Company will refuse to register any transfer of the Shares not made in
accordance with the provisions of the Securities Act, pursuant to registration
under the Securities Act, pursuant to an available exemption from registration,
or pursuant to this Agreement. 

6.4     The Holder agrees to resell the
Shares only in accordance with the provisions of the Securities Act, pursuant to
registration under the Securities Act, or pursuant to an available exemption
from registration pursuant to the Securities Act. 

6.5     The Holder acknowledges and agrees
that all certificates representing the Shares will be endorsed with a
restrictive legend in substantially the following form: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
SAID ACT, OR AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY
SATISFACTORY TO COUNSEL TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.” 

Section 7.     Transfer to Comply with
the Securities Act. This Debenture shall be binding upon the Company and its
successors and assigns, and shall inure to be the benefit of the Holder and its
successors and assigns. This Debenture may be sold, assigned or transferred only
in compliance with applicable federal and state securities laws and regulations.

Section 8.     Governing Law. The
Debenture shall be governed by and construed in accordance with the laws of the
State of Nevada. All questions concerning the construction, validity,
enforcement and interpretation of this Debenture shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the State of Nevada for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or
proceeding is improper or is an inconvenient venue for such proceeding. Each
party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
Debenture and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by
law. The parties hereby waive all rights to a trial by jury. If either party
shall commence an action or proceeding to enforce any provisions of the
Debenture, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or
proceeding. 

Section 9.     Business Day
Definition. For purposes hereof, the term ‘business day’ shall mean any day
on which banks are generally open for business in the State of Nevada and
excluding any Saturday and Sunday. 

Section 10.     Notices. Any notice
or other communication required or permitted to be given hereunder shall be
given as provided herein or delivered against receipt if to (i) the Company at
950 John Daly blvd., Suite 260, Daly City, CA 94015 (ii) the Holder of a
Debenture, to such holder at its last address as shown on the Debenture Register
(or to such other address as the party shall have furnished in writing as its
new address to be entered on the Debenture Register. Any notice or other
communication needs to be made by facsimile and delivery shall be deemed give,
except as otherwise required herein, at the time of transmission of said
facsimile. Any notice given on a day that is not a business day shall be
effective upon the next business day. 

Section 11.     Waiver of any Breach to
be in Writing. Any waiver by the Company or the Holder of a Debenture of a
breach of any provision of the Debenture shall not operate as, or be construed
to be a waiver of any other breach of such provision or of any breach of any
other provision of the Debenture. The failure of the Company or the Holder
hereof to insist upon strict adherence to any term of the Debenture on one or
more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term
of the Debenture. Any waiver must be in writing. 

Section 12.     Unenforceable
Provisions. If any provision of a Debenture is invalid, illegal or
unenforceable, the balance of the Debenture shall remain in effect, and if any
provision is inapplicable to any person or circumstance, it shall nevertheless
remain applicable to all other persons and circumstances. 

Section 13.     Construction; Headings.
This Debenture shall be deemed to be jointly drafted by the Company and all
the Purchasers and shall not be construed against any person as the drafter
hereof. The headings of this Debenture are for convenience of reference and
shall not form part of, or affect the interpretation of, this Debenture. 

IN WITNESS WHEREOF, Company has caused the Debenture to be
signed in its name by its duly authorized officer this ___________, 2011. 

	 	COMPANY: 
	 	 
	 	EPOD Solar Inc. 
	 	 
	 	By:__________________________________ 
	 	       
            Joseph Kristul, CEO & Chairman
  

EXHIBIT A 

NOTICE OF CONVERSION 

(To be Executed by the Registered Holder in order to Convert
the Debenture) 

The undersigned hereby irrevocably
elects to convert $__________
in principal amount of the Debenture (defined
herein) into Units, of 
EPOD Solar Inc., a Nevada Company (the
"Company"), plus: 

-$_________any Interest owing, if applicable and at the
Company’s sole discretion all according to the conditions of the Debenture of
the Company dated as of April, 29, 2011, (the "Debenture"), as of the
date written below. If securities are to be issued in the name of a Person other
than the undersigned, the undersigned will pay all transfer taxes payable with
respect thereto and is delivering herewith such certificates. No fee will be
charged to the Holder for any Conversion, except for transfer taxes, if any. By
submitting this Notice of Conversion, the Holder certifies that the issuance of
the number of shares of Common Stock requested hereby will not result in a
violation of the Beneficial Ownership Limitation. 

The undersigned hereby requests that the Company issue a
certificate or certificates for the number of shares of Common Stock set forth
above and Warrants for the number set forth above (which numbers are based on
the Holder's calculation attached hereto) in the name(s) specified immediately
below or, if additional space is necessary, on an attachment hereto: 

Name:
_________________________________________________
 

Address:
_______________________________________________

The undersigned represents and warrants that all offers and
sales by the undersigned of the securities issuable to the undersigned upon
Conversion of the Debenture shall be made pursuant to an exemption from
registration under the Securities Act of 1933, as amended (the "ACT").

(i) Date of
Conversion:_______________________________
Applicable Conversion
Price:________________________
Number of Shares of Common Sock to be Issued
_______________
Number of Warrants
______________________________
Conversion of the
Debenture:_______________________

Signature:
______________________________________________________
Name:
_________________________________________________________
Address:
_______________________________________________________

Upon Conversion of the Debenture in accordance with the terms
thereof, the Holder shall not be required to physically surrender the Debenture
(or evidence of loss, theft or destruction thereof) to the Company unless all of
the Debenture is converted, in which case such Holder shall deliver the
Debenture being converted to the Company promptly following the Conversion Date
at issue. The Company shall issue and deliver shares of Common Stock to an
overnight courier not later than the fifth Business Day following receipt of the
Notice of Conversion with respect to the Debenture(s) to be converted, and shall
make payments pursuant to the Debenture for the number of Business Days such
issuance and delivery is late.EPOD Solar Inc.: Exhibit 4.3 - Filed by newsfilecorp.com

Exhibit 4.3

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE"ACT") OR
APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED
OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE
REASONABLY SATISFACTORY TO COUNSEL TO THE BORROWER THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.”

Original Issue Date: April 29, 2011 
Conversion
Price: US $1.40 

CONVERTIBLE DEBENTURE
DUE APRIL 29, 2014

FOR VALUE RECEIVED, EPOD Solar Inc., a Nevada Company
(hereinafter called the "Borrower" or “Company”), hereby promises to pay to the
order of ____________________or its registered assigns (the "Holder") the sum of
$_________US Dollars (___________USD), on April 29, 2014 (the "Maturity Date"),
or such earlier date as this Debenture is required or permitted to be repaid as
provided hereunder, and to pay interest to the Holder on the aggregate
unconverted and then outstanding principal amount of this Debenture in
accordance with the provisions hereof. This Convertible Debenture (including all
Convertible Debentures issued in exchange, transfer or replacement hereof, this
"Debenture") is a duly authorized issue of Debentures of the Company, designated
as its Convertible Debentures due April 29, 2014 (the "Debentures") issued
pursuant to a Securities Purchase Agreement entered into between the Company and
the Holder on ________, 2011 (“Securities Purchase Agreement”).

Except as otherwise expressly provided
herein, including but not limited to Section 7(c) below, this Debenture may not
be prepaid by the Borrower. All payments due hereunder (to the extent not
converted into Units as defined in Section 2(a)(i) herein, of the Borrower in
accordance with the terms hereof shall be made in lawful money of the United
States and any accrued Interest shall be added to the principal amount of this
Debenture, in which event Interest shall accrue thereon in accordance with the
terms of this Debenture and such additional principal amount shall be
convertible into Common Stock in accordance with the terms of this Debenture.
All payments shall be made at the address of the Holder as designated by the
Holder or at such address as the Holder shall hereafter give to the Borrower by
written notice made in accordance with the provisions of this Debenture.
Whenever any amount expressed to be due by the terms of this Debenture is due on
any day which is not a Business Day (as defined below), the same shall instead
be due on the next succeeding day which is a Business Day.

This Debenture is subject to the following additional
provisions: 

Section 1.     Interest. Subject to
the terms and conditions of this Debenture, The Company shall pay interest
(“Interest”) to the Holder on the aggregate unconverted and then outstanding
principal amount of this Debenture at the rate of ten percent (10%) per annum
(the “Interest Rate”) from the Original Issue Date (as defined herein) until the
same becomes due and payable at maturity. Interest shall commence accruing on
the Original Issue Date, shall be computed on the basis of a 365-day year and
the actual number of days elapsed and shall be payable on an annual basis every
twelve (12) months, in accordance with the terms hereof. The Company shall have
the option of paying the Holder the amount of interest due and payable in cash
or in Shares of the Company pursuant to the terms of conversion herein and the
price per Share shall be equal to the average price per Share in the ten trading
days preceding the date on which the Interest becomes due and payable. The
amount of interest payable in respect of the Debenture shall be reduced
proportionately in the event of its partial or full conversion prior to
maturity.

Section 2.     Conversion.

(a) Conversion Right. 

(i) Conversion Timing and Amount. Subject to the
limitations on Conversion contained herein, the record Holder of this Debenture
shall have the right (a “Conversion Right”) from time to time, and at any time
on or after the Original Issue Date hereof and prior to the Maturity Date, to
convert any part or all of the Debenture into a total of up to
________(___________) units ((“Units” and individually each a or "Unit") of the
Company at the price of USD $1.40 (“Conversion Price”) per Unit. Each Unit shall
be comprised of the following: (i) 1 (one) share of the Company’s common stock
(“Common Stock”) par value $0.001 per share (“Share” and collectively
“Shares”); and (ii) 1⁄2 (one half) of one stock purchase warrant . Each whole
stock purchase warrant (“Warrant” and collectively “Warrants”) is exercisable at
any time prior to the Maturity Date, at an exercise price of US $2.00 per Share,
to purchase 1 (one) additional Share. Any Shares issuable pursuant to the
exercise of the Conversion Right shall be issued as fully paid and
non-assessable shares of Common Stock, or any shares of capital stock or other
securities of the Company into which such Common Stock shall hereafter be
changed or reclassified, at the Conversion Price determined as provided herein
(a "Conversion"). The Conversion Rights set forth in this Section 2 shall remain
in full force and effect immediately from the Original Issue Date until the
Debenture is paid in full. 

(ii) Limitation On Conversion. Notwithstanding
the above, in no event shall the Holder be entitled to convert any portion of
this Debenture in excess of that portion of this Debenture upon Conversion of
which the sum of (1) the number of shares of Common Stock beneficially owned by
the Holder and any applicable affiliates (other than shares of Common Stock
which may be deemed beneficially owned through the ownership of the unconverted
portion of the Debenture or the unexercised or unconverted portion of the Warrants or of any other security of
the Company subject to a limitation on Conversion or exercise analogous to the
limitations contained herein)(the “Beneficially Owned Shares”) and (2) the
number of shares of Common Stock issuable upon the Conversion of the portion of
the Debenture with respect to which the determination of this proviso is being
made would result in beneficial ownership by the Holder and its affiliates of
more than 4.99% (the “Maximum Percentage”) of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of
Common Stock issuable upon conversion of this Debenture held by the Holder (the
“Beneficial Ownership Limitation”). For purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined by the
Holder in accordance with Section 13(d) of the Exchange Act and Regulations
13D-G thereunder, except as otherwise provided in clause (1) of such proviso in
the immediately preceding sentence, and provided that the Beneficial Ownership
Limitation shall be conclusively satisfied if the applicable Notice of
Conversion includes a signed representation by the Holder, if requested by the
Company, that the issuance of the shares in such Notice of Conversion will not
violate the Beneficial Ownership Limitation, and the Company shall not be
entitled to require additional documentation of such satisfaction.

(iii) Calculation of Conversion Amount. The number of
Units to be issued upon each Conversion of this Debenture shall be determined by
dividing the Conversion Amount (as defined herein) by the applicable Conversion
Price. The term "Conversion Amount" means, with respect to any Conversion of the
Debenture, the sum of (i) the Principal Amount of the Debenture to be converted
in such Conversion, and (ii) at the Company’s discretion, any Interest accrued
and due. 

(b) Mechanics of Conversion. In order to convert the
Debentures into full shares of Common Stock and Warrants, the Holder shall
deliver a copy of the fully executed notice of conversion in the form on the
rear of the certificate evidencing the Debenture (‘Notice of Conversion’) to the
Company at the office of the Company which notice shall specify the amount of
the Debenture to be converted (together with a copy of the first page of each
Debenture to be converted) prior to Midnight, Eastern time (the ‘Conversion
Notice Deadline’) on the date of Conversion specified on the Notice of
Conversion and (ii) surrender the original Debenture(s); provided, however, that
the Company shall not be obligated to issue certificates evidencing the shares
of Common Stock issuable upon such conversion and Warrants unless either the
original Debentures are delivered to the Company as provided above, or the
Holder notifies the Company that such Debenture(s) have been lost, stolen or
destroyed. In the case of a dispute as the calculation of the Conversion Price,
the Company’s calculation shall be deemed conclusive absent manifest error. 

(i) Lost or Stolen Debentures. Upon receipt by the
Company of evidence of the loss, theft, destruction or mutilation of a
Debenture, and (in the case of loss, theft or destruction) indemnity or security
reasonably satisfactory to the Company, and upon surrender and cancellation of
the Debenture, if mutilated, the Company shall execute and deliver new
Debenture(s) of like tenor and date. 

(ii) Delivery of Common Stock and Warrants upon Conversion. The Company shall issue and use its best efforts to deliver within a reasonable time after delivery to the Company of a Debenture and Notice of Conversion, or after provision for
security or indemnification required by (i) above, to such Holder of the Debenture at the address of the Holder on the books of the Company, a certificate for the number of shares of Common Stock and a number of Warrants to which the Holder shall be
entitled as aforesaid. 

(iii) No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of a Debenture. If any conversion of the Debenture would create a fractional share of Common Stock or a right to acquire a fractional share of
Common Stock, a cash adjustment will be made for the fractional interest. 

(iv) Date of Conversion. The date of which conversion occurs (the ‘Date of Conversion’) shall be deemed to be the date set forth in such Notice of Conversion, provided that the copy of the Notice of Conversion is delivered or faxed
to the Company before midnight, Pacific time, on the Date of Conversion, and (ii) that the original Debentures to be converted are surrendered, and received by the Company within five business days from the Date of Conversion. The person or persons
entitled to receive the shares of common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Common Stock on such date. If the original Debentures to be converted are not received
by the Transfer Agent or the Company within five business days after the Date of Conversion or if the facsimile of the Notice of Conversion is not received by the Company or its designated transfer agent prior to the Conversion Notice Deadline, the
Notice of Conversion, at the Company’s option, may be declared null and void. 

(c) Reservation of Stock Issuable Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Debentures, such
number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all then outstanding Debentures; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to
effect the conversion of all then outstanding Debentures, the Company will immediately take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for
such purpose. 

(d) Adjustment to Conversion Price.  

(i) Adjustment Due to Stock Split, Stock Dividend, Etc. If at any time when the Debentures are issued and outstanding, the number of outstanding shares of Common Stock is increased by a stock split, stock dividend, or other similar event, the
Fixed Conversion Price shall be proportionately reduced, or if the number of outstanding shares of Common Stock is decreased by a combination or reclassification of shares, or other similar event, the Fixed Conversion Price share be proportionately
increased. 

(ii) Adjustment Due to Merger, Consolidation, Etc. If at
any time when the Debentures are issued and outstanding, there shall be any
merger, amalgamation, consolidation, exchange of shares, recapitalization,
reorganization, or other similar event, as a result of which shares of Common
Stock of the Company shall be changed into the same or a different number of
shares of another class or classes of stock or securities of the company or
another entity (“Material Transaction”), then the Holders of the Debentures
shall thereafter have the right to receive upon conversion of the Debentures,
upon the basis and upon the terms and conditions specified herein and in lieu of
the shares of Common Stock immediately theretofore issuable upon conversion,
such stock and/or securities which the Holder would have been entitled to
receive in such transaction had the Debentures been converted immediately prior
to the Material Transaction.

(iii) Anti-Dilution Pursuant to Share Issuances. If at
any time, when the Debentures are issued and outstanding the Company issues
Additional Securities (as defined below) (a “Dilutive Issuance”) the Company
shall adjust the Conversion Price (“Adjusted Conversion Price”) of this
Debenture using the following formula below.

“Additional Shares” shall mean all shares of Common Stock
issued by the Company other than (i) shares of Common Stock and/or options, to
employees, officers, or directors of, or consultants or advisors to, the Company
or any subsidiary pursuant to any stock option plans, that are approved by the
Board of Directors of the Company,(“ ESOP Shares Issuances”)

	 X =  	Y (A) 
	 	   B 
	 
	Where 	X =     the Adjusted
      Conversion Price 
	 	Y =     9,250,000 
	 	A =     the Conversion
      Price 
	 	B =     the total number of
      shares of Common Stock outstanding of the Company immediately following
      the Dilutive Issuance calculated on a fully diluted basis, excluding any
      ESOP Shares Issuances. 

(iv) Anti-Dilution Pursuant to Securities Issuances within
the context of a Financing. If at any time, when the Debentures are issued
and outstanding the Company undergoes an offering or financing (“Financing”)
which results in the issuance of Shares, debentures, or other convertible
securities at an exercise or conversion price that is equal to less than the
Conversion Price herein per Share (“Base Financing Price”), then the Conversion
Price shall be reduced and shall be equal to the Base Financing Price minus a
twenty-five percent (25%) discount (the “Percentage Discount”) (“Discounted Conversion Price”). The
Discounted Conversion Price shall be calculated using the following formula:

	 	 
	A=  	    
       B     
		  (1 + C) 
	 	 
	Where 	A =     Discounted
      Conversion Price 
	  	B =     the Base Financing
      Price per Share 
	  	C =     the Percentage
      Discount. 

Section 4.     No Voting Rights. The
Debentures shall not entitle the Holders thereof to any of the rights of a
stockholder of the Company, including without limitation, the right to vote, to
receive dividends and other distributions, or to receive any notice of, or to
attend meetings of stockholders or any other proceedings of the Company. 

Section 5.     Rule 144 Hold Period.
For purposes of Rule 144, it is intended, understood and acknowledged that
the Common Stock issuable upon Conversion of this Debenture shall be deemed to
have been acquired at the time the Debenture was issued. Moreover, it is
intended, understood and acknowledged that the holding period for the Common
Stock issuable upon Conversion of this Debenture shall be deemed to have
commenced on the date this Debenture was issued.

Section 6.     Regulation S
Agreement of the Holder 

6.1     The Holder represents and warrants
to the Company that the Holder is not a "U.S. Person" as defined by Regulation S
of the Securities Act and is not acquiring the Shares for the account or benefit
of a U.S. Person. 

A "U. S. Person" is defined by Regulation S of the Securities
Act to be any person who is: 

Any natural person resident in the United States; 

Any partnership or corporation organized or incorporated
under the laws of the United States; 

	 	i.	
      Any estate of which any executor or
administrator is a U.S. person; 
	 	 	
       
	 	ii. 	
      Any trust of which any trustee is a U.S.
      person;

	 	 	 	 
	 	iii. 	
      Any agency or branch of a foreign entity located in
      the United States;

	 	 	 	 
	 	iv. 	
      Any non-discretionary account or similar account
      (other than an estate or trust) held by a dealer or other fiduciary for
      the benefit or account of a U.S. person;

	 	 	 	 
	 	v. 	
      Any discretionary account or similar account (other
      than an estate or trust) held by a dealer or other fiduciary organized,
      incorporated, or (if an individual) resident in the United States;
      and

	 	 	 	 
	 	vi. 	
      Any partnership or corporation if:

	 	 	 	 
	 		A. 	
      Organized or incorporated under the laws of any
      foreign jurisdiction; and

	 	 	 	 
	 		B. 	Formed by a U.S. person principally for the
      purpose of investing in securities not registered under the Act, unless it
      is organized or incorporated, and owned, by accredited investors (as
      defined in Rule 501(a)) who are not natural persons, estates or
    trusts.

6.2     The Holder acknowledges that the
Holder was not in the United States at the time the offer to purchase the Shares
was received. 

6.3     The Holder acknowledges that the
Shares are "restricted securities" within the meaning of the Securities Act and
will be issued to the Holder in accordance with Regulation S of the Securities
Act. 

6.4     The Holder agrees not to engage in
hedging transactions with regard to the Shares unless in compliance with the
Securities Act. 

6.5     The Holder and the Company agree
that the Company will refuse to register any transfer of the Shares not made in
accordance with the provisions of Regulation S of the Securities Act, pursuant
to registration under the Securities Act, pursuant to an available exemption
from registration, or pursuant to this Agreement. 

6.6     The Holder agrees to resell the
Shares only in accordance with the provisions of Regulation S of the Securities
Act, pursuant to registration under the Securities Act, or pursuant to an
available exemption from registration pursuant to the Securities Act. 

6.7     The Holder acknowledges and agrees
that all certificates representing the Shares will be endorsed with the
following legend in accordance with Regulation S of the Securities Act: 

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER
THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE
TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT
TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT". 

Section 8.     Transfer to Comply with
the Securities Act. This Debenture shall be binding upon the Company and its
successors and assigns, and shall inure to be the benefit of the Holder and its
successors and assigns. This Debenture may be sold, assigned or transferred only
in compliance with applicable federal and state securities laws and regulations.

Section 9.     Governing Law. The
Debenture shall be governed by and construed in accordance with the laws of the
State of Nevada. All questions concerning the construction, validity,
enforcement and interpretation of this Debenture shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the State of Nevada for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or
proceeding is improper or is an inconvenient venue for such proceeding. Each
party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
Debenture and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by
law. The parties hereby waive all rights to a trial by jury. If either party
shall commence an action or proceeding to enforce any provisions of the
Debenture, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its reasonable attorneys’ fees and other costs
and expenses incurred with the investigation, preparation and prosecution of
such action or proceeding. 

Section 10.     Business Day
Definition. For purposes hereof, the term ‘business day’ shall mean any day
on which banks are generally open for business in the State of Nevada and
excluding any Saturday and Sunday. 

Section 11.     Notices. Any notice
or other communication required or permitted to be given hereunder shall be
given as provided herein or delivered against receipt if to (i) the Company at
950 John Daly blvd., Suite 260, Daly City, CA 94015 (ii) the Holder of a
Debenture, to such holder at its last address as shown on the Debenture Register
(or to such other address as the party shall have furnished in writing as its
new address to be entered on the Debenture Register. Any notice or other
communication needs to be made by facsimile and delivery shall be deemed give,
except as otherwise required herein, at the time of transmission of said
facsimile. Any notice given on a day that is not a business day shall be
effective upon the next business day. 

Section 12.     Waiver of any Breach to
be in Writing. Any waiver by the Company or the Holder of a Debenture of a
breach of any provision of the Debenture shall not operate as, or be construed
to be a waiver of any other breach of such provision or of any breach of any
other provision of the Debenture. The failure of the Company or the Holder
hereof to insist upon strict adherence to any term of the Debenture on one or
more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term
of the Debenture. Any waiver must be in writing. 

Section 13.     Unenforceable
Provisions. If any provision of a Debenture is invalid, illegal or
unenforceable, the balance of the Debenture shall remain in effect, and if any
provision is inapplicable to any person or circumstance, it shall nevertheless
remain applicable to all other persons and circumstances. 

Section 14.     Construction; Headings.
This Debenture shall be deemed to be jointly drafted by the Company and all
the Purchasers and shall not be construed against any person as the drafter
hereof. The headings of this Debenture are for convenience of reference and
shall not form part of, or affect the interpretation of, this Debenture. 

IN WITNESS WHEREOF, Company has caused the Debenture to be
signed in its name by its duly authorized officer this ____, 2011. 

	 	COMPANY: 
	 	 
	 	EPOD Solar Inc. 
	 	 
	 	By:__________________________________ 
	 	           
      Joseph Kristul, CEO & Chairman 

EXHIBIT A 

NOTICE OF CONVERSION 

(To be Executed by the Registered Holder in order to Convert
the Debenture) 

	 	The undersigned hereby irrevocably elects to
      convert $__________ 
	 	in principal amount of the Debenture (defined
      herein) into Units, of 
	 	EPOD Solar Inc., a Nevada Company (the
      "Company"), plus: 

-$_________any Interest owing, if applicable and at the
Company’s sole discretion all according to the conditions of the Debenture of
the Company dated as of April 29, 2011, (the "Debenture"), as of the date
written below. If securities are to be issued in the name of a Person other than
the undersigned, the undersigned will pay all transfer taxes payable with
respect thereto and is delivering herewith such certificates. No fee will be
charged to the Holder for any Conversion, except for transfer taxes, if any. By
submitting this Notice of Conversion, the Holder certifies that the issuance of
the number of shares of Common Stock requested hereby will not result in a
violation of the Beneficial Ownership Limitation. 

The undersigned hereby requests that the Company issue a
certificate or certificates for the number of shares of Common Stock set forth
above and Warrants for the number set forth above (which numbers are based on
the Holder's calculation attached hereto) in the name(s) specified immediately
below or, if additional space is necessary, on an attachment hereto: 

Name:
_________________________________________________

Address:
_______________________________________________

The undersigned represents and warrants that all offers and
sales by the undersigned of the securities issuable to the undersigned upon
Conversion of the Debenture shall be made pursuant to an exemption from
registration under the Securities Act of 1933, as amended (the "ACT").

(i) Date of
Conversion:_______________________________
Applicable Conversion
Price:________________________
Number of Shares of Common Sock to be Issued
_______________
Number of Warrants
______________________________
Conversion of the
Debenture:_______________________

Signature:
______________________________________________________
Name:
_________________________________________________________
Address:
_______________________________________________________

Upon Conversion of the Debenture in accordance with the terms thereof, the Holder shall not be required to physically surrender the Debenture (or evidence of loss, theft or destruction thereof) to the Company unless all of the Debenture is
converted, in which case such Holder shall deliver the Debenture being converted to the Company promptly following the Conversion Date at issue. The Company shall issue and deliver shares of Common Stock to an overnight courier not later than the
fifth Business Day following receipt of the Notice of Conversion with respect to the Debenture(s) to be converted, and shall make payments pursuant to the Debenture for the number of Business Days such issuance and delivery is late.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]