Document:

ex10_5.htm

     

    
      PROMISSORY
NOTE

       

      $1,750,000 April
9, 2010

       

      FOR VALUE
RECEIVED, undersigned, Teen Glow Makeup, Inc. (name change to American Power
Corp. in process), a Nevada corporation, hereby promises to pay to the order of
JBM Energy Company, LLC, a Delaware limited liability company ("JBM"), the
principal sum of One Million Seven Hundred Fifty Thousand U.S. Dollars
($1,750,000), to be payable according to the following schedule and
terms.

       

      1.
Principal payments shall be made in the following amounts on the following
dates:

       

      
        	
                a.  

              	
                $200,000
      on July 9, 2010.

              

      

       

                  
b. $200,000
on January 9, 2011.

       

      
        	
                c.  

              	
                $100,000
      90 days following completion of the Reserve Study and Mining Plan by
      undersigned as required by undersigned's agreement with JBM, but in no
      event later than on April 9, 2012.

              

      

       

      
        	
                d.  

              	
                Commencing
      on April 9, 2014, the remaining principal balance of One Million Two
      Hundred Fifty Thousand U.S. Dollars ($1,250,000) shall be paid in eight
      (8) equal quarterly installments plus all accrued interest on the unpaid
      principal balance due on the date of each installment payment of
      principal. Said quarterly installments of $156,250 each, plus the accrued
      interest, shall be paid on April 9, 2014, July 9, 2014, October 9, 2014,
      January 9, 2015, April 9, 2015, July 9, 2015, October 9, 2015 and January
      9, 2016.

              

      

       

      
        	
                 
      

              	
                2.
      This Note shall bear interest at the rate of five percent (5%) per annum,
      but no interest shall be due and payable by undersigned during the first
      two (2) years following April 9, 2010. Interest shall commence to accrue
      starting on April 9, 2012, and interest only payments of $15,625 each
      shall be paid quarterly on the ninth (9th)
      day of each following July, October, January and April of every year
      through April 9, 2014 when thereafter quarterly interest payments are
      calculated on unpaid principal balances through the end of each
      quarter.

              

      

       

      
        	
                 
      

              	
                3.
      Undersigned shall have the right to prepay all or any .part of the
      principal balance at any time without
penalty.

              

      

       

      
        	
                 
      

              	
                4.
      All payments of principal and interest shall be made in cash by bank wire
      according to bank wire instructions given by JBM to undersigned from time
      to time.

              

      

       

      
        	
                 
      

              	
                5.
      All payments shall be first applied to interest and the balance to
      principal. All prepayments shall be applied in reverse order of
      maturity.

              

      

       

      
        	
                 
      

              	
                6.
      This Note is secured by a Mortgage of even date herewith (the "Mortgage")
      which constitutes a first lien upon coal and other mineral rights located
      in Judith Basin County, Montana.

              

      

       

      7. This
Note shall become due and payable at the option of the holder hereof,
immediately upon default in payment of any installment of principal or interest
payable hereunder, or any part thereof, or upon failure to comply with any of
the terms, covenants, conditions or agreements contained in the Mortgage or
other security instrument securing this Note, or upon the dissolution or
liquidation of the undersigned, or upon the filing by undersigned of an
assignment for the benefit of creditors, a petition in bankruptcy or other
relief under the Bankruptcy Code, or by suffering an involuntary petition in
bankruptcy or receivership not vacated within 30 days.

       

      
        	
                8.  

              	
                The
      undersigned agrees to pay all costs of collection, including reasonable
      attorney and paralegal fees, if this Note is placed in the hands of an
      attorney for collection after default, and hereby waives demand,
      presentment for payment, protest, notice of protest, and notice of
      dishonor.

              

      

       

      
        	
                9.  

              	
                Waiver
      by the holder hereof of any default by the undersigned shall not
      constitute a waiver by the holder of a subsequent default. Failure by the
      holder to exercise any right, power or privilege which it may have by
      reason of a default by the undersigned, shall not preclude the exercise of
      such right, power or privilege, so long as such default remains uncured or
      if a subsequent default occurs.

              

      

       

      
        	
                10.  

              	
                If
      the coal or other mineral rights encumbered by the Mortgage, or any
      portion thereof, or any interest therein, are sold, mortgaged, or conveyed
      or become subject to an agreement to sell, mortgage, or convey prior to
      the time this Note shall have been paid in full, then the entire balance
      of principal and accrued interest hereunder shall at the option of the
      holder hereof become immediately due and
  payable.

              

      

       

      
        	
                11.  

              	
                If
      Buyer makes timely all payments provided for hereunder, and if Buyer
      becomes entitled to receive the 40% equity interest in JBM as provided for
      in paragraph 10.a. of the Coal Buy and Sell Agreement between Buyer and
      JBM, this Promissory Note for the remaining balance of $1,250,000 shall be
      cancelled.

              

      

       

      
        	
                12.  

              	
                This
      note is made and executed under, and is in all respects to be governed by,
      the laws of the State of Montana.

              

      

       

      This Note
is being executed this 9th day
of April, 2010.

       

      TEEN GLOW
MAKEUP, INC. (name change to American Power Corp. in process)

      By: /s/ Johannes
Petersen

      President

      Undersigned
Maker

      

      Signed in
the presence of:

      

      

      /s/ Robin
Fleming

      Witnessex10_6.htm

     

    
      CLOSING
STATEMENT

       

      This
Closing Statement agreed to and executed this 9th day
of April, 2010, by and between JBM Energy Company, LLC, a Delaware limited
liability company ("JBM"). Russell B. Pace, Jr. ("Pace"), Teen Glow Makeup, Inc.
(name change to American Power Corp. in process), a Nevada corporation
("Buyer"), and Realty Title Company, Inc., a Montana corporation ("Escrow
Agent"),

       

      WITNESSETH:

       

      
        	
                 
      

              	
                1.
      Pursuant to the terms and conditions of the Escrow Agreement, entered into
      this 9th
      day of April, 2010, by and between JBM, Pace, Buyer and Escrow Agent, the
      following documents were delivered to the Escrow Agent to be held by it
      subject to the terms and conditions of said Escrow
    Agreement.

              

      

       

      a. Quit
Claim Deed dated April 9, 2010, from JBM to Buyer

                            
b. Quit
Claim Deed dated April 9, 2010, from Pace to Buyer

      c. Mortgage
and Security Agreement dated April 9, 2010 from Buyer to JBM and
Pace

       

      
        	
                 
      

              	
                2.
      Buyer executed and delivered (a) its Promissory Note for $1,750,000 to
      JBM, and (b) its Promissory Note for $1,950,000 to
  Pace.

              

      

       

      
        	
                 
      

              	
                3.
      Buyer has bank wired $150,000 to the account of JBM in the US Bank in
      Great Falls, Montana.

              

      

       

      
        	
                 
      

              	
                4.
      Buyer and Pace agreed that the 250,000 shares of stock which Buyer was to
      have delivered to Pace on April 9, 2010, will be delivered to Pace as soon
      as the reorganization of Buyer is completed which Buyer expects to occur
      within the next 3-4 weeks. The stock will be mailed to Pace
      at:

              

      

       

      2139
Bybee's Church Road

       

      Palmyra,
VA 22963

       

      
        	
                 
      

              	
                5.
      Promptly upon receipt from Buyer of funds for JBM and Pace, Escrow Agent
      will bank wire all of the funds received from Buyer to either JBM or Pace
      after deducting any bank wire fees or charges incurred. The bank wire
      instructions for wiring funds to JBM and Pace are as
    follows:

              

      

       

      A. For JBM Energy Company,
LLC

       

      Bank wire
$ to:

      U.S.
Bank

       

      300
Central Avenue

      Great
Falls, MT 59401

       

      406-455-1077

      Bank
Routing/ARA Number 092900383 For the account of:

      JBM
Energy Company, LLC Account No. 1-500-9034-1333

      B. For Russell B. Pace,
Jr.

       

      Bank wire
$ to:

      Bank of
America

       

      2103
Barracks Road

       

      Charlottesville,
VA 22903

       

      434-963-2907

      Bank
Routing/ARA Number 051000017 For the account of: 

      Russell
B. Pace, Jr. 

      Margaret
A. Pace 

      Account
No. 0041-1036-9763

       

      
        	
                6.  

              	
                Bank
      wire instructions for funds to be bank wired from Buyer to Escrow Agent
      are set forth in Exhibit A attached
hereto.

              

      

       

      
        	
                7.  

              	
                At
      closing Escrow Agent will be paid a flat one time fee of $800 to set up
      and service all payments made under the Escrow Agreement. Any bank wire
      fees or charges incurred will be deducted from the amounts bank wired to
      JBM and Pace. Recording fees for recording the documents will be paid to
      Escrow Agent at closing.

              

      

       

      
        	
                8.  

              	
                JBM
      and Buyer agree to amend paragraph 2.a. of the Coal Buy and Sell agreement
      to give Buyer twenty-four (24) months to complete the drilling and prepare
      the reserve Study and the Mine Feasibility Study with a Mining Plan
      (instead of 18 months as presently provided). All other language and
      provisions in said paragraph 2.a. should remain the same and in full force
      and effect.

              

      

       

      
        	
                9.  

              	
                JBM
      and Buyer agree to amend paragraph 10.a. of the Coal Buy and Sell
      Agreement by adding at the end of the last sentence of paragraph 10.a. the
      following:

              

      

       

      ", and
the Buyer's Promissory Note for the remaining balance of $1,250,000 shall be
cancelled."

       

      All other
language and provisions in said paragraph 10.a. should remain the same and in
full force and effect.

       

      
        	
                10.  

              	
                Buyer
      and Pace agree to amend paragraph 9.a. of the Mineral Buy and Sell
      Agreement by adding the following sentence at the end of paragraph
      9.a.

              

      

       

      "If Buyer
makes timely all payments provided for in paragraph 2 above, and if Buyer
becomes entitled to receive the 40% equity interest in JBM as provided for in
paragraph

      10.a. of
the Coal Buy and Sell Agreement, Buyer's Promissory Note to Pace for the
remaining balance of $1,250,000 shall be cancelled.

       

      All other
language and provisions in said paragraph 9.a. should remain the same and in
full force and effect.

       

      
        	
                11.  

              	
                Buyer
      and JBM agree to amend paragraph 10.a. of the Coal Buy and Sell Agreement
      to provide that if JBM, at its option deems the Coal Agreement terminated,
      null, void and no further force and effect, at which time Buyer shall have
      no further rights or liabilities under the Coal Agreement or the
      Promissory Note issued by Buyer thereunder, and all payments made by Buyer
      shall be deemed forfeited and
non-refundable.

              

      

       

      All other
language and provisions in said paragraph 10.a. shall remain the same in full
force and effect.

       

      
        	
                 
      

              	
                12.
      Buyer and Pace agree to amend paragraph 9.a. of the Mineral Buy and Sell
      Agreement to provide that if Pace, at his option deems the Mineral
      Agreement terminated, null, void and no further force and effect, at which
      time Buyer shall have no further rights or liabilities under the Mineral
      Agreement or the Promissory Note issued by Buyer thereunder, and all
      payments made by Buyer shall be deemed forfeited and
      non-refundable.

              

      

       

      All other
language and provisions in said paragraph 9.a. shall remain the same and in full
force and effect.

       

      Executed
as of this 9th day of April, 2010.

       

      
        	
                By:

              	 
      	
                BUYER:

                Teen
      Glow Makeup, Inc.

                {name
      change to American Power 'Corp.
      in process)

                By:                                                     

              
	 
      
	 
      	/s/ Russell B. Pace, Jr.	 
      	 /s/ Johannes Petersen
	 	Russell
      B. Pace, Jr. 	 	Johannes
      Petersen
	 	Individually 	 	President

      

       

       

                                  
ESCROW AGENT

      JBM
Energy Company,
LLC                                                                                                    
Realty Title Company, Inc.

       

      
        	
                By:

              	
                 

              	
                By:

              	 
      
	/s/ Russell B. Pace, Jr.	 
      

      

                         Russell
B. Pace, Jr. 

                        
Sole Manager

       

       

       

      EXHIBIT A
TO CLOSING

       

      REALTY
TITLE COMPANY

      201
6th
Street South

      Lewistown,
MT 59457

      (406)
535-2326/8176 Phone

      (406)
535-5184 Fax

      e-mail:
rtc@midrivers.com

       

      WIRE
TRANSFER ROUTING INSTRUCTIONS

       

      TO BE
ASSURED OF PROMPT PROCESSING OF YOUR INCOMING WIRES PLEASE PROVIDE THE FOLLOWING
INSTRUCTIONS TO THE INITIATING BANK:

       

      RECEIVING
BANK: (Field 3400)

       

      First
Bank of Montana 224 W. Main Street Lewistown, MT 59457

      (406)
538-7471

       

      ABA
ROUTING TRANSIT NUMBER 092900736

       

      BENFICIARY
INFORMATION(BNF) (Field 4100)

       

      ACCOUNT
# 5083121086

      
        	
                 
      

              	
                ACCOUNT
      NAME

              	
                REALTY
      TITLE COMPANY, INC. TRUST ACCOUNT

              

      

      
        	
                 
      

              	
                ORIGINATOR
      TO BENEFICIARY INFORMATION (OBI) (Field 6000) 

                Customer
      name:

              

      

      

      
        	
                 
      

              	
                Please
      request the receiving Bank notify Realty Title Company upon receipt at
      (406) 535-2326 or FAX
(406)-535-5184.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}]]