Document:

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY OTHER APPLICABLE SECURITIES LAW OF ANY STATE
OR OTHER JURISDICTION, AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT INCLUDING
BUT NOT LIMITED TO REGULATION S PROMULGATED UNDER THE ACT. THESE SECURITIES CANNOT BE TRANSFERRED, OFFERED, OR SOLD IN THE UNITED
STATES OR TO A “U.S. PERSON” (AS THAT TERM IS DEFINED IN REGULATION S PROMULGATED UNDER THE ACT) UNLESS SUCH SECURITIES
ARE REGISTERED UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, THE AVAILABILITY OF WHICH
IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY AND ITS COUNSEL. HEDGING TRANSACTIONS INVOLVING THE SECURITIES
MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

 

 

SUBSCRIPTION
AGREEMENT

FOR

AMERICAN
POWER corp.,

a Nevada corporation

 

 

This subscription agreement
(this “Subscription Agreement”) is entered into by and between American Power Corp., a Nevada corporation (the “Company”),
and the person or entity executing the Subscription Agreement (the “Subscriber”). In this Subscription Agreement, the
pronoun “it” means “he,” “she,” or “it,” as appropriate. All terms not otherwise
defined herein shall have the original meaning as defined in that certain Stock Issuance Agreement dated September 10, 2010 between
the Company and Subscriber (the “Stock Issuance Agreement”). This Subscription Agreement is intended to be read in
conjunction with the Company’s quarterly and annual reports and any definitive proxy statements (collectively, the “Reports”)
filed with the Securities and Exchange Commission (“SEC”). All of the Company’s SEC filings, including the Reports,
may be reviewed and accessed via the SEC’s website at http://www.sec.gov. (As used herein, Subscription Agreement, Stock
Issuance Agreement and Reports shall collectively be referred to as the “Disclosure Documents”).

 

1.Offering.
 The Company is offering for sale to the Subscriber, and the Subscriber is offering to purchase from the Company, Units
at the Unit Price determined to be $0.22 per Unit on the date hereof (the “Offering”), subject to the
terms, conditions, acknowledgements, representations, and warranties stated herein and in the Stock Issuance Agreement.
Each Unit consists of one (1) share of common stock of the Company (“Share”) and one share purchase warrant
(each a “Warrant”). Each Warrant shall entitle the Subscriber to purchase one additional
share (each a “Warrant Share”) of Common Stock, at an exercise price equal to 150% of the Unit Price at which the Unit
containing the Warrant being exercised was issued, for a period of three (3) years from the date such Warrant is issued.

 

 

    	(1)

    	 

    

 

2.Subscription. The Subscriber
hereby irrevocably subscribes to purchase from the Company the number of Units and at the aggregate purchase price (the “Purchase
Price”) set forth on the execution page to this Subscription Agreement titled “SUBSCRIPTION AGREEMENT SIGNATURE PAGE.”

 

3.Purchase. The Subscriber shall
have tendered and delivered an Advance to the Company in the amount representing the Purchase Price set forth on the Subscription
Agreement Signature Page, along with the execution and delivery of this Subscription Agreement.

 

4.Acceptance or Rejection of Subscription.
The Subscriber understands and agrees that the Company reserves the right, in its sole discretion, to reject this subscription,
in whole or in part if the Subscriber (a) failed to deliver the Advance as payment of the Purchase Price, (b) failed to deliver
a completed Subscription Agreement, or (c) constitutes a “U.S. Person” as such term is defined in Rule 902(k) of Regulation
S under the Securities Act of 1933, as amended (the “Act”), until there has been notice of acceptance of the Subscriber’s
subscription. In the event of rejection of this subscription, the Company and Subscriber shall take all actions deemed necessary
or advisable to remedy such disqualifying matter causing rejection of the subscription. Upon acceptance of the subscription by
the Company, the Company will deliver to the Subscriber an “accepted” Subscription Agreement, and cause the Units to
be promptly issued to the Subscriber.

 

5.Subscriber’s Representations,
Warranties, Covenants. The Subscriber hereby represents, warrants and covenants to the Company as follows, realizing that the
Company intends to rely on these representations, warranties, and covenants, which shall survive the acceptance of the Subscriber’s
subscription by the Company:

 

5.1Purchase For Own
Account. The Subscriber (a) is purchasing the Units, or Shares underlying the Warrants (the Units, Shares, Warrants and Shares
underlying the Warrants are collectively referred to hereafter as the “Securities”) for its own benefit and account
(not as a nominee or agent) for investment purposes only and not with an intent or view to, or for, resale, distribution or fractionalization
thereof, in whole or in part, (b) has no present arrangement or intention to sell or distribute the Securities, or to grant participation
in the Securities, and (c) does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer
or grant participation to such person, or to any third person, with respect to any of the Securities.

 

5.2Speculative Investment.
The Subscriber represents and warrants that it understands that an investment in the Securities is speculative and involves substantial
risks, including the possible loss of the entire investment, and Subscriber represents and warrants that it is in a position to
lose the entire amount of such investment. In order to understand the risks involved with such investment, Subscriber represents
and warrants that it has carefully read and understood the Disclosure Documents and “Risk Factors” set forth in Section
6 of this Subscription Agreement.

 

5.3Independent Review.
In making the decision to invest in the Company and subscribe for Units, the Subscriber has (a) received, read and is familiar
with the Subscription Agreement, Stock Issuance Agreement and Reports (b) been given access and the opportunity to ask any
and all questions it had, and to receive answers from the Company or any person acting on its behalf concerning the Company, its
business plan, management and current financial condition, and/or the terms and conditions of the offer and sale of the Units,
and Subscriber has received complete and satisfactory answers to any such inquiries, (c) has relied solely upon the information
contained within this Subscription Agreement or upon information obtained in its own investigation, and represents and warrants
that neither the Company, nor any officer, employee, agent, or affiliate of the Company has made any representations other than
those contained within this Subscription Agreement, (d) understands that the attorneys, accountants or other professionals who
have been employed to perform services on the Company’s behalf have NOT been employed to represent the interests of the Subscriber,
and understands that it should consult with and rely on its own counsel or advisors for independent legal, accounting, financial
and tax advice concerning this investment in the Company, including but not limited to advice as to the legality of any resale
of the Securities, tax or other consequences of such investment in the Company, and the suitability of the investment for the Subscriber,
and (e) acknowledges that the Reports have been accessible and available for inspection and that the appropriate officers of the
Company have been available to answer any questions concerning this investment. The Subscriber represents and warrants it is solely
responsible for its own due diligence investigation of the Company and its analysis of the merits and risks of an investment in
the Company.

 

    	(2)

    	 

    

 

5.4Pre-existing Relationship
with the Company or Sufficient Business and Financial Experience. The Subscriber represents and warrants that: (i) it has a
preexisting personal or business relationship with the Company or any of the Company’s officers, directors or controlling
persons, or (ii) by reason of its business or financial experience or the business or financial experience of its professional
advisors who are unaffiliated with and who are not compensated by the Company or any affiliate or selling agent of the Company,
directly or indirectly, it could be reasonably assumed to have the capacity to protect its own interests in connection with the
purchase of the Securities. A “preexisting personal or business relationship” will be deemed to exist where the Subscriber
has personal or business contacts with the Company, or any officer, director or controlling person of the Company, of such a nature
and duration that would enable a reasonably prudent purchaser to be aware of the character, business acumen and general business
and financial circumstances of the Company or person with whom such relationship exists.

 

5.5No Advertisement
or General Solicitation. The offer and sale of the Units has not been advertised through any article, notice or other communication
published in any newspaper, magazine, or similar media or broadcast over television or radio, or through any seminar or meeting
whose attendees have been invited by any general solicitation or general advertising, and the Subscriber is not purchasing as a
result of any such advertisement or solicitation.

 

5.6Authority to Purchase
the Units and to Execute Subscription Agreement. The Subscriber has all the requisite power, authority and capacity to acquire
and hold the Securities and to execute, deliver and comply with the terms of each of the instruments required to be executed and
delivered by the Subscriber in connection with the subscription for the Units as contemplated by this Subscription Agreement, and
such execution, delivery and compliance does not conflict with, or constitute a default under, any instruments governing the Subscriber,
any law, regulation or order, or any agreement to which the Subscriber is a party or by which the Subscriber may be bound. The
Subscriber hereby adopts, accepts and agrees to be bound by all the terms and provisions of this Subscription Agreement, and, if
this subscription is accepted in whole or in part, to perform and comply with any obligations therein imposed.

 

5.7Partnership, Corporation
or Trust. If the Subscriber is a partnership, corporation or trust, the person executing this Subscription Agreement on its
behalf represents and warrants that (i) it has made due inquiry to determine the truthfulness of the representations and warranties
made pursuant to this Subscription Agreement, and (ii) it is duly empowered, authorized, and qualified (and if the Subscriber is
a trust, by the trust agreement) to make this investment and to enter into and execute this Subscription Agreement on behalf of
such entity.

 

5.8Restricted Securities.
The Subscriber acknowledges that the Securities have not been registered or qualified under any federal or state securities laws
in reliance upon exemptions from the registration requirements of such laws, and the Securities may not be transferred by the undersigned
except in compliance with the registration requirements of such laws or pursuant to available exemptions from registration. The
offer and sale of the Securities has not been approved or disapproved by the SEC or any state regulatory authority, and any representation
to the contrary is unlawful.

 

    	(3)

    	 

    
 

5.9 Legend. The
Subscriber understands and agrees that the certificate(s) or the documents representing the Securities will bear one or more restrictive
legends determined by counsel to the Company to be necessary or appropriate in order to comply with United States federal or state
securities law or to secure or protect any applicable exemptions from registration or qualification, including a legend in substantially
the following form and the Subscriber agrees to abide by the terms thereof:

 

THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY OTHER APPLICABLE SECURITIES
LAW OF ANY STATE OR OTHER JURISDICTION, AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. THESE SECURITIES CANNOT BE TRANSFERRED, OFFERED, OR SOLD IN THE UNITED
STATES OR TO A “U.S. PERSON” (AS THAT TERM IS DEFINED IN REGULATION S PROMULGATED UNDER THE ACT) UNLESS SUCH SECURITIES
ARE REGISTERED UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO
THE SATISFACTION OF THE CORPORATION AND ITS COUNSEL. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS
IN COMPLIANCE WITH THE ACT.

 

5.10Compliance with
Securities Law. The Subscriber will not sell or otherwise transfer the Securities except as permitted under the Act and applicable
United States state securities laws or an exemption therefrom, provided that the Subscriber delivers to the Company an opinion
of counsel (which opinion and counsel are satisfactory to the Company) confirming the availability of such exemption upon the Company’s
request.

 

5.11Resale. Subscriber
may resell the Securities hereunder only pursuant to registration under the Act, or pursuant to an available exemption from registration
and subject to an available exemption under Rule 144 promulgated under the Act (“Rule 144”). The Securities may be
sold following six (6) months from the date Subscriber purchases the Securities so long as the Subscriber is not an “affiliate”
of the Company and all the conditions set forth under Rule 144 have been satisfied.

 

5.12Company’s
Reliance on Information Provided. The Subscriber understands that the Securities are being offered and sold to it in reliance
on specific exemptions from the registration requirements of the United States federal and state securities laws and that the Company
is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the
Subscriber set forth herein to determine the applicability of such exemptions and the suitability of the Subscriber to acquire
the Securities.

 

5.13Not a U.S. Person.
The Subscriber represents and warrants that it is not a “U.S. person” as such term is defined in Rule 902(k) of Regulation
S under the Act. A definition of “U.S. person” includes but is not limited to the following: (i) any natural person
resident of the U.S.; (ii) any partnership or corporation organized or incorporated under the laws of the U.S.; (iii) any estate
of which any executor or administrator is a U.S. person; and (iv) any partnership or corporation if (1) organized or incorporated
under the laws of any foreign jurisdiction, and (2) 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 who are not natural persons,
estates or trusts. The Subscriber represents that it is a bona fide resident of, and is domiciled in, the country so designated
on the signature page hereto.

 

    	(4)

    	 

    
 

5.14No Written or
Oral Representations. No person or entity, including the Company or agents of the Company, has made any written or oral representations
or warranties, expressly or by implication to the Subscriber, (a) that any person will resell or repurchase the Securities, (b)
that any person will refund the Purchase Price for the Units, (c) as to the future price or value of the Securities, (d) as to
the appropriate or exact length of time that Subscriber will be required to hold the Securities, (e) as to the percentage of profit
and/or amount or type of consideration, profit, or loss to be realized, if any, as a result of an investment in the Securities,
or (f) as to the amount of distributions that the Company will make.

 

5.15Subscription
Rejection Right. The Subscriber acknowledges that the Company reserves the right to reject its subscription, to accept any
subscription in part only, or to prorate subscriptions, if the Subscriber (a) fails to deliver the Advance as payment of the Purchase
Price, (b) fails to deliver a completed Subscription Agreement, or (c) constitutes a “U.S. Person” as such term is
defined in Rule 902(k) of Regulation S under the Act.

 

5.16Subsequent Changes.
All information which the Subscriber has provided to the Company, including but not limited to all information given herein concerning
itself, investor status, address, residence, financial position and knowledge and experience of financial and business matters
are correct and complete as of the date of the execution of the Subscription Agreement, and that if there should be any material
change in such information prior to this Subscription Agreement being accepted by the Company, the Subscriber will immediately
provide the Company with such information. The Subscriber will promptly notify the Company of any material fact or circumstance
that would cause any of the foregoing representations to be untrue, incomplete, or misleading.

 

6.Risk Factors. In addition to the risks otherwise
disclosed in the Reports and elsewhere in this Subscription Agreement, the Subscriber acknowledges and understands the risks involved
with an investment to purchase the Units, including, but not limited to, the risks described below:

 

6.1Speculative. The Subscriber
understands that an investment in the Securities is speculative and involves substantial risks, including the possible loss of
the entire investment, and understands the risks and uncertainties discussed in this Subscription Agreement.

 

6.2Investment Risk; No Operating
History. The Subscriber understands that the Company is currently in a development stage and has no operating history nor any
history of profitability. The Company reserves the right to obtain additional capital to develop its operations and complete its
business plans. There is no assurance that the Company can obtain additional capital to accomplish the foregoing or successfully
complete its business plans. As such, the Subscriber’s investment in the Company involves a high degree of risk which may
result in a loss of all or substantially all of the Subscriber’s investment.

 

    	(5)

    	 

    
 

6.3No Review of Fairness. No
federal or state agency has passed upon the Securities nor has made any finding, recommendation or determination as to the fairness
of this investment.

 

6.4No Representations Concerning
Suitability. The Company has made no representations or recommendations to the Subscriber concerning whether the purchase of
the Securities is a suitable investment for it. The Subscriber and its representative, if any, have the sole responsibility for
determining whether this investment is suitable for the Subscriber. The Company is not responsible to the Subscriber for making
any such determination.

 

6.5Unit
Price May Fluctuate. In accordance with the Stock Issuance Agreement, the Unit Price and the exercise price of the Warrants
may fluctuate from time to time based upon market conditions and trading activity of the Company’s Common Stock.

 

6.6Illiquid
Investment. The Subscriber’s investment in the Company is an illiquid investment, and the Subscriber must bear the economic
risk of its investment.

 

6.7The
Securities Are Not Registered With The SEC Nor With Any State Securities Authorities. The Securities will not be registered
under the Act nor under any state securities laws nor the securities laws of any other country in reliance upon specific exemptions
from registration under the provisions of the Act and applicable state securities laws and the laws of other countries. The Securities
issued will be deemed "restricted securities" and may not be sold, transferred or otherwise disposed of without an effective
registration statement under the Act or an exemption therefrom. As a result, the Securities may be transferred or resold only if
the Securities have been registered or there is an available exemption from registration and the certificates representing the
Securities will bear a legend to this effect. The Securities are being offered in reliance upon an exemption from the registration
provisions of the Act, pursuant to Regulation S promulgated thereunder.

 

6.8Dilution in Initial Equity Interest.
Any further issuance by the Company of any additional Securities of the Company will dilute any equity interest of the Subscriber.
No assurances can be given that the Company will not issue additional securities that will have the effect of diluting the equity
interest of the Subscriber.

 

6.9Due
Diligence and Investigation. The offer and sale of the Units is not underwritten by or being offered through investment bankers
or underwriters. There has not been an independent review of matters covered in the Subscription Agreement by any such professionals
or other professionals. Subscriber must rely solely upon its own investigation and analysis of the risks in making this investment
decision.

 

6.10No
Established Public Trading Market. Even though the Company’s Common Stock is traded over-the-counter by quotation on
the OTC Bulletin Board under the symbol “AMNP” the Subscriber realizes there is no established public trading market
for the Securities. 

 

6.11Penny Stock Regulations Affect
the Company’s Stock Price, Which May Make it More Difficult to Sell. Broker-dealer practices in connection with transactions
in “penny stocks” are regulated by certain penny stock rules adopted by the SEC. Penny stocks generally are equity
securities with a price per share of less than $5.00 (other than securities registered on certain national securities exchanges
or quoted on the NASDAQ Stock Market, provided that current price and volume information with respect to transactions in such securities
is provided by the exchange or system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock
not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks
and the risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations
for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements
showing the market value of each penny stock held in the customer’s account. In addition, the penny stock rules generally
require that prior to a transaction in a penny stock the broker-dealer make a special written determination that the penny stock
is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure
requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject
to the penny stock rules. The Securities are subject to the penny stock rules, and investors may find it more difficult to sell
their securities.

 

    	(6)

    	 

    
 

7.Indemnification.
The Subscriber agrees to indemnify and hold the Company and any person, if any, who controls the Company, within the meaning of
Section 15 of the Act, and the Company’s officers, directors, agents, attorneys, and affiliates harmless from and against
all damages, losses, costs and expenses, including reasonable attorneys’ fees and expenses reasonably incurred in the investigation
or preparation in defense of any litigation commenced or threatened or any claim whatsoever, which they may incur by reason of
the failure by the Subscriber to comply with the terms and conditions of this Subscription Agreement, or by reason of any misrepresentation
or breach of any warranty or covenant made by the Subscriber herein, or in any document provided by the Subscriber to the Company
in connection with the Subscriber’s investment in the Securities. The Subscriber further agrees that the provisions of this
Section shall survive (a) the sale, transfer or any attempted sale or transfer of all or a portion of the Securities, and (b) the
death of the Subscriber.

 

8.Termination, Cancellation
or Revocation. The Subscriber agrees that it may not cancel, terminate, or revoke this Subscription Agreement or any agreement
made by it hereunder and that this Subscription Agreement shall survive the death or disability of the Subscriber and shall be
binding upon the Subscriber’s heirs, executors, administrators, successors, and assigns, who shall execute a substantially
similar agreement.

 

9.Modification.
Neither this Subscription Agreement nor any provisions hereof shall be modified, discharged or terminated except by an instrument
in writing signed by the party against whom any modification, discharge or termination is sought.

 

10.Notices.
Any notice, demand or other communication that any party hereto may be required, or may elect, to give to anyone interested hereunder
shall be deemed given (a) three (3) business days after mailing if sent by registered or certified mail, return receipt requested,
addressed to such address as may be given herein, (b) immediately if delivered personally at such address, including by overnight
delivery service, or (c) immediately if communicated by facsimile to the person entitled to such notice, provided, however,
that acknowledgment of the receipt of such facsimile notice is returned to the person giving notice, it being understood that such
acknowledgment shall not be unreasonably withheld.

 

    	(7)

    	 

    
 

11.Payment of Expenses.
Subject to the provisions of this Subscription Agreement, the Company, on the one hand, and the Subscriber, on the other hand,
will pay all fees and expenses (including, without limitation, legal fees and expenses) incurred by them in connection with the
transactions contemplated hereunder.

 

12.Counterparts.
This Subscription Agreement may be executed through the use of separate signature pages (including by facsimile) or in any number
of counterparts, and each of such counterparts shall, for all purposes, constitute one agreement binding on all the parties, notwithstanding
that all parties are not signatories to the same counterpart.

 

13.Binding Effect.
Except as otherwise provided herein, this Subscription Agreement shall be binding upon and inure to the benefit of the parties
and their heirs, executors, administrators, successors, legal representatives and assigns. The obligation of the Subscriber and
the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon
the Subscriber and the heirs, executors, administrators and successors of the Subscriber.

 

14.Entire Agreement.
This instrument, including all appendices, exhibits and schedules attached hereto which have been incorporated by reference into
this Subscription Agreement, contain the entire agreement of the parties with respect to the subject matter of this Subscription
Agreement, and there are no representations, covenants or other agreements except as stated or referred to herein.

 

15.Assignability.
This Subscription Agreement is not transferable or assignable by the Subscriber except as provided herein.

 

16.Applicable Law.
This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of Nevada as applied to
residents of that state entering into contracts wholly to be performed in that state, without regards to conflicts of laws principles.
The Subscriber hereby agrees that any suit, action, or proceeding arising out of or relating to this Subscription Agreement, any
amendments or any replacements hereof, and any transactions or agreements relating hereto shall be brought in the courts of, or
the Federal courts in, the State of Nevada, County of Washoe, and the Subscriber hereby irrevocably consents and submits to the
jurisdiction of such courts for the purposes of any such suit, action or proceeding, and the Subscriber agrees that service of
process on the Subscriber in such suit, action or proceeding may be made in the same way as is prescribed by this Subscription
Agreement for other notices. The Subscriber hereby waives, and agrees not to assert against the Company or any assignee thereof,
by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, (a) any claim that he or she is not personally
subject to the jurisdiction of the above-named courts or that his or her property is exempt or immune from setoff, execution or
attachment, either prior to judgment or in execution thereof, and (b) to the extent permitted by applicable law, any claim that
such suit, action or proceeding is brought in an inconvenient forum or that the venue of suit, action or proceeding is improper
or that this subscription agreement or any amendments or any replacements hereof may not be enforced in or by such courts. Venue
for such actions as set forth above is intended to be inclusive.

 

17.Waiver of Jury
Trial. The parties to this Subscription Agreement hereby waive any right that they may otherwise have to a trial by jury in
any suit, action, or proceeding that arises out of or relates to this Subscription Agreement, any amendments to or any replacements
of this Subscription Agreement, and any transactions or agreements relating to this Subscription Agreement. The parties understand
that, as a result of this waiver, the facts relating to any dispute that is covered by this waiver will be tried, if necessary,
to a judge rather than to a jury.

 

18.Severability.
If any provision or portion of this Subscription Agreement is held to be unenforceable or invalid for any reason, the remaining
provisions and portions of this Subscription Agreement shall be unaffected by such holding.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

    	(8)

    	 

    

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

 

In addition to the foregoing,
the Subscriber hereby certifies that it (a) agrees to all the terms and conditions of this Subscription Agreement, (b) meets the
suitability standards set forth in this Subscription Agreement, and (c) is a resident of the jurisdiction indicated below.

 

	
        I.              
        NUMBER OF SUBSCRIBED UNITS. Subscriber subscribes to purchase 2,727,273
        Units

        (at $0.22 per Unit) of the Company (“Units”). Each Unit Consists of one Share and one Warrant.

         

        II.            
        PURCHASE PRICE. The total purchase price of the Units (the number of Units multiplied
        by price per Unit) is $600,000 (the “Purchase Price”).

         

        III.          
        WARRANTS. The attached Warrants entitle the Subscriber
        to purchase 2,727,273 additional shares of Common Stock, at an exercise price of $0.33 for a period of 3 years from the date the
        Warrant is issued.

 

The Subscriber directs the Company to issue, register and deliver
the certificates representing the Shares as follows:

 

	REGISTRATION INSTRUCTIONS:	DELIVERY INSTRUCTIONS:
	
                                                                                                                        

    Name to appear on certificate
 
 Black     Sands     Holdnings
    Inc.                                                                                                  

    Tax ID / Corporate ID # / Cert. Incorporation #
 
 Address
     80     Raffles
    Place      Singapore
    048624       

                                                                                                                           	
                                                                                                                        
 Name and account reference, if applicable
 
                                                                                                                         
 Contact name
 
                                                                                                                         
 Address
 
                                                                                                                         
 Telephone number
	EXECUTED by the Subscriber this _______ day of__________, _____. By executing this Agreement, the Subscriber certifies that the Subscriber is resident in the jurisdiction shown as the “Address of the Subscriber”. The address of the Subscriber will be accepted by the Company as a representative as to the address of residency for the Subscriber.
	WITNESS:	EXECUTION BY SUBSCRIBER:
	                                                                                                                        
 Signature of witness
 
                                                                                                                         
 Name of witness
 
                                                                                                                         
 Address of witness
 
                                                                                                                        	
         

        

        X /s/ Steven Drayton

        Authorized signatory

         

        

Steven Drayton

Name of authorized signatory (please print)

	
        ACCEPTED this 9 day of August, 2011.

        AMERICAN POWER CORP.

        Per: /s/ Alvaro Valencia

        Authorized signatory
	
                                                                                                                        
 Address of Subscriber (residence)
 
                                                                                                                         
 Telephone number and e-mail addressEX-10.1

PROMISSORY NOTE

$     .00 August   , 2011

FOR VALUE RECEIVED, Circle Entertainment Inc., a Delaware corporation (the “Payor”), hereby
unconditionally promises to pay to the order of [      ] (the “Payee”), in lawful
money of the United States of America in immediately available funds, the principal sum of
[      ] Dollars ($     ), together with interest thereon, compounded annually, from
the date hereof through maturity at the rate of 6.00% per annum (calculated on the actual number
of days elapsed and an assumed year of 360 days) (the “Stated Rate”). This principal
amount, together with interest accrued thereon at the Stated Rate commencing on the date hereof,
shall be due and payable in full upon demand.

This Promissory Note (“Note”) evidences Payee’s loan to Payor in the principal amount
of this Note.

Payor shall use the principal amount of this Note for working capital requirements. So long
as any amounts under this Note remain unpaid, Payor shall not incur any indebtedness for borrowed
money without the prior written consent of Payee (which consent shall not be unreasonably withheld,
delayed or conditioned). For the avoidance of doubt and ambiguity, the foregoing restriction on the
incurrence of indebtedness for borrowed money shall not apply to indebtedness incurred by Payor in
the ordinary course of business for goods and services from trade creditors.

The principal and accrued interest balance of this Note may be prepaid in whole or in part at
any time without a premium or penalty of any kind.

If any Acceleration Event (as defined below) shall occur for any reason then and in any such
event, in addition to all rights and remedies of the Payee under this Note, applicable law or
otherwise, all such rights and remedies being cumulative, not exclusive and enforceable
alternatively, successively and concurrently, the Payee may, at its option, declare due any or all
of the Payor’s obligations, liabilities and indebtedness owing to the Payee under this Note
whereupon the then unpaid balance hereof shall immediately be due and payable, together with all
expenses of collection hereof, including, but not limited to, attorneys’ fees and legal expenses
(for this purpose, the Payor shall pay all trial and appellate attorneys’ fees, costs and expenses,
paid or incurred by the Payee in connection with collection of this Note). If the foregoing unpaid
balances, expenses and collection costs are not paid upon demand upon the occurrence of an
Acceleration Event (collectively, the “Unpaid Amounts”), such Unpaid Amounts shall bear
interest until paid in full at the Stated Rate plus 5.00% per annum or the maximum interest rate
then permitted under applicable law (whichever is less) (the “Default Rate”). From and
after maturity of this Note, the Unpaid Amounts shall bear interest until paid in full at the
Default Rate. For purposes hereof, “Acceleration Event” means the first to occur of the following:
(i) if any principal or accrued interest or other amount owing under this Note is not paid when due
and such default continues unremedied for fifteen (15) days after written notice provided by Payee
to Payor, (ii) Payor having made an assignment for the benefit of creditors, filed a petition in
bankruptcy, applied to or petitioned any tribunal for the appointment of a custodian, receiver,
intervener or trustee for Payor, or commenced any proceeding for any arrangement or readjustment of
its debts, (iii) any such petition or application having been filed or proceeding having commenced
against Payor and Payor not having interposed a defense thereto within the time permitted under
applicable law, (iv) the sale or other disposition of all or substantially all of Payor’s assets,
(v) the dissolution of Payor or (vi) the failure by Payor to perform any other covenant, agreement
or condition contained in this Note and such default continues unremedied for thirty (30) days
after written notice thereof is given to Payor by Payee; provided, however, in the event such
default is curable but is not reasonably capable of cure within said 30-day period, Payor shall
have such additional time as required to cure any such default so long as Payor is diligently
undertaking the cure of such default.

The Payor (i) waives diligence, demand, presentment, protest and notice of any kind, except
for any notice expressly required by the provisions of this Note, and (ii) agrees that it will not
be necessary for the Payee to first institute suit in order to enforce payment of this Note.

The validity, interpretation and enforcement of this Note and any dispute arising in
connection herewith or therewith shall be governed by the internal laws of the State of New York
(without giving effect to principles of conflicts of law).

The Payor irrevocably consents and submits to the exclusive jurisdiction of the state courts
of the State of New York located in the County of New York and the United States District Court
whose district covers such county, and waives any objection based on venue or forum non conveniens
with respect to any action instituted therein arising under this Note.

EACH OF PAYOR AND PAYEE HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER THIS NOTE, AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY.

The Payor may not assign this Note and/or delegate any of its obligations hereunder without
the written consent of the Payee. This Note is not secured by any collateral of any nature.
Neither this Note nor all or any portion of the Payee’s rights and interests herein may be
negotiated, assigned, pledged, hypothecated or otherwise transferred by Payee.

The Payor shall be solely responsible for any necessary tax or assessment relating to this
Note; provided, however, that the Payor shall not be responsible for Payee’s tax obligations
arising from receipt of funds set forth herein.

If any term or provision of this Note shall be held invalid, illegal or unenforceable, the
validity of all other terms and provisions hereof shall in no way be affected thereby.

The waiver by the Payee of the Payor’s prompt and complete performance of, or default under,
any provision of this Note shall not operate nor be construed as a waiver of any subsequent breach
or default, and the failure by the Payee to exercise any right or remedy which it may possess
hereunder or under applicable law shall not operate nor be construed as a bar to the exercise of
any such right or remedy upon the occurrence of any subsequent breach or default.

IN WITNESS WHEREOF, the Payor has executed this Promissory Note the day and year first written
above.

CIRCLE ENTERTAINMENT INC.

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

	 	Mitchell J. Nelson
	
 
	 	 
	Title:

	 	Executive Vice President

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