Document:

helix_ex1003.htm

 

    
      

    
Exhibit 10.3

    THIS
WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND
THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SUCH ACT AND ANY APPLICABLE
STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO HELIX
WIND, CORP. THAT SUCH REGISTRATION IS NOT REQUIRED.

    

    HELIX
WIND, CORP.

    

    WARRANT
TO PURCHASE SHARES OF COMMON STOCK

    

    1.            Issuance. In
consideration of good and valuable consideration as set forth in the Purchase
Agreement (defined below), including without limitation the Purchase Price (as
defined in the Purchase Agreement), the receipt and sufficiency of which is
hereby acknowledged by Helix Wind, Corp., a Nevada corporation (the “Company”),
St. George Investments, LLC, an Illinois limited liability company, its
successors or registered assigns (the “Holder”),
is hereby granted the right to purchase at any time on or after the Issue Date
(as defined below) until the date which is the last calendar day of the month in
which the fifth anniversary of the Issue Date occurs (the “Expiration
Date”), three hundred thousand (300,000) fully paid and nonassessable
shares of the Company’s Common Stock, $0.0001 par value per share (the “Common
Stock”), at an initial exercise price of $1.25 per share (the “Exercise
Price”), subject to further adjustment as set forth herein. This Warrant
is being issued pursuant to the terms of that certain Note and Warrant Purchase
Agreement of even date herewith (the “Purchase
Agreement”), to which the Company and the Holder (or the Holder’s
predecessor in interest) are parties.

    

    Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Purchase Agreement.

    

    This
Warrant was originally issued to the Holder or the Holder’s predecessor in
interest on January 27, 2010 (the “Issue
Date”).

    

    2.           Exercise of
Warrants.

    

    2.1           General.

    

    (a) This Warrant is exercisable in
whole or in part at any time and from time to time commencing on the Issue Date.
Such exercise shall be effectuated by submitting to the Company (either by
delivery to the Company or by facsimile transmission) a completed and duly
executed Notice of Exercise (substantially in the form attached to this Warrant
as EXHIBIT A). The date such Notice of Exercise is either faxed, emailed or
delivered to the Company shall be the “Exercise
Date,” provided that, if such exercise represents the full exercise of
the outstanding balance of the Warrant, the Holder of this Warrant shall tender
this Warrant to the Company within five (5) Trading Days (as defined below)
thereafter. The Notice of Exercise shall be executed by the Holder of this
Warrant and shall indicate (i) the number of shares then being purchased
pursuant to such exercise and (ii) if applicable (as provided below), whether
the exercise is a cashless exercise.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    

    For
purposes of this Warrant, the term “Trading
Day” means any day during which the Principal Market (as defined below)
shall be open for business.

    

    (b)
Notwithstanding any other provision contained herein to the contrary, at any
time prior to the Expiration Date, the Holder may elect a “cashless” exercise of
this Warrant for any Warrant Shares. Whereby, the Holder shall be entitled to
receive a number of shares of Common Stock equal to (x) the excess of the
Current Market Value (as defined below) over the total cash exercise price of
the portion of the Warrant then being exercised, divided by (y) the Adjusted
Price of the Common Stock.

    

    For the purposes of this Warrant, the
following terms shall have the following meanings:

    

    “Adjusted Price of
the Common Stock” shall mean the lower of (i) the average volume-weighted
average price (the “VWAP”) for
the three trading days with the lowest average VWAP of the twenty trading days
immediately preceding the Exercise Date, or (ii) 50% of the VWAP over the five
trading days immediately preceding the Exercise Date.

    

    “Current Market
Value” shall mean an amount equal to the Market Price of the Common
Stock, multiplied by the number of shares of Common Stock specified in the
applicable Notice of Exercise.

    

    “Market Price of
the Common Stock” shall mean the lower of: (i) the Closing Price (as
defined below) of the Company’s common stock on the principal market where
Common Stock is traded (the “Principal
Market”) for the prior business day; or (ii) the average VWAP of the
Common Stock on such market for the prior ten (10) business days, in each case
as recorded by Bloomberg, LP (or if that service is not then reporting the
relevant information regarding the Common Stock, a comparable reporting service
of national reputation selected by the Holder and reasonably acceptable to the
Company).

    

    “Closing
Price” means the 4:00 P.M. closing bid price of the Common Stock on the
Principal Market on the relevant trading day(s), as reported by Bloomberg LP (or
if that service is not then reporting the relevant information regarding the
Common Stock, a comparable reporting service of national reputation selected by
the Holder and reasonably acceptable to the Company) for the relevant
date.

    

    (c) If
the Notice of Exercise form elects a “cash” exercise (or if the cashless
exercise referred to in the immediately preceding paragraph (b) is not available
in accordance with the terms hereof), the Exercise Price per share of Common
Stock for the shares then being exercised shall be payable, at the election of
the Holder, in cash or by certified or official bank check or by wire transfer
in accordance with instructions provided by the Company at the request of the
Holder.

    

    
      
         

      

      
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    (d) Upon
the appropriate payment to the Company, if any, of the Exercise Price for the
shares of Common Stock purchased, together with the surrender of this Warrant
(if required), the Company shall immediately deliver the shares of Common Stock
electronically via Deposit/Withdrawal at Custodian (DWAC) or Depository Trust
Company (DTC) to the account designated by Holder on the Notice of
Exercise.  If for any reason the Company is not able to deliver the
shares via DWAC or DTC, notwithstanding its best efforts to do so, the Company
shall deliver certificates representing the Warrant Shares to the Holder as
provided in the Notice of Exercise (the certificates delivered in such manner,
the “Warrant Share
Certificates”) within three (3) Trading Days (such third Trading Day, a
“Delivery
Date”) of (i) with respect to a “cashless exercise,” the Exercise Date as
the case may be, or, (ii) with respect to a “cash” exercise, the later of the
Exercise Date or the date the payment of the Exercise Price for the relevant
Warrant Shares is received by the Company.

    

    (e) The
Company understands that a delay in the electronic delivery of shares or the
delivery of the Warrant Share Certificates, as the case may be, beyond the
Delivery Date (assuming electronic delivery is not available) could result in
economic loss to the Holder. As compensation to the Holder for such loss, the
Company agrees to pay late payment fees (as liquidated damages and not as a
penalty) to the Holder for late delivery of Warrant Share Certificates in the
amount of $100 per Trading Day after the Delivery Date for each $10,000 of
Exercise Price of the Warrant Shares subject to the delivery default. The
Company shall pay any payments incurred under this Section in immediately
available funds upon demand. Furthermore, in addition to any other remedies
which may be available to the Holder, in the event that the Company fails for
any reason to effect delivery of the Warrant Share Certificates by the Delivery
Date, the Holder may revoke all or part of the relevant Warrant exercise by
delivery of a notice to such effect to the Company, whereupon the Company and
the Holder shall each be restored to their respective positions immediately
prior to the exercise of the relevant portion of this Warrant, except that the
liquidated damages described above shall be payable through the date notice of
revocation or rescission is given to the Company.

    

    (f) The
Holder shall be deemed to be the holder of the shares issuable to it in
accordance with the provisions of this Section 2.1 on the Exercise
Date.

    

    2.2             Ownership Limitation.
Notwithstanding the provisions of this Warrant, in no event shall the this
Warrant be exercisable to the extent that the issuance of Common Stock upon the
exercise thereof, after taking into account the Common Stock then owned by the
Holder and its affiliates, would result in the beneficial ownership by the
Holder and its affiliates of more than 9.99% of the outstanding Common Stock of
the Company.  For purposes of this paragraph, beneficial ownership
shall be determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended.

    

    2.3             Trustee for Warrant
Holders. In the event that a qualified bank or trust company shall have
been appointed as trustee for the Holder pursuant to Subsection 6.2, such bank
or trust company shall have all the powers and duties of a warrant agent (as
hereinafter described) and shall accept, in its own name for the account of the
Company or such successor person as may be entitled thereto, all amounts
otherwise payable to the Company or such successor, as the case may be, on
exercise of this Warrant pursuant to Section 2.1.

    
      
         

      

      
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    3.           Reservation of
Shares. The Company hereby agrees that, at all times during the term of
this Warrant, there shall be reserved for issuance upon exercise of this
Warrant, one hundred percent (100%) of the number of shares of its Common Stock
as shall be required for issuance of the Warrant Shares for the then unexercised
portion of this Warrant. For the purposes of such calculations, the Company
should assume that the outstanding portion of this Warrant was exercisable in
full at any time, without regard to any restrictions which might limit the
Holder’s right to exercise all or any portion of this Warrant held by the
Holder.

    

    4.           Mutilation or Loss of
Warrant. Upon receipt by the Company of evidence satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) receipt of reasonably satisfactory indemnification,
and (in the case of mutilation) upon surrender and cancellation of this Warrant,
the Company will execute and deliver a new Warrant of like tenor and date and
any such lost, stolen, destroyed or mutilated Warrant shall thereupon become
void.

    

    5.           Rights of the Holder.
The Holder shall not, by virtue hereof, be entitled to any rights of a
stockholder in the Company, either at law or equity, and the rights of the
Holder are limited to those expressed in this Warrant and are not enforceable
against the Company except to the extent set forth herein.

    

    6.           Protection Against Dilution
and Other Adjustments.

    

    6.1           Capital
Adjustments.  If
the Company shall at any time prior to the expiration of this Warrant subdivide
the Common Stock, by split-up or stock split, or otherwise, or combine its
Common Stock, or issue additional shares of its Common Stock as a dividend, the
number of Warrant Shares issuable on the exercise of this Warrant shall
forthwith be automatically increased proportionately in the case of a
subdivision, split or stock dividend, or proportionately decreased in the case
of a combination.  Appropriate adjustments shall also be made to the
purchase price payable per Warrant Share, but the aggregate purchase price
payable for the total number of Warrant Shares purchasable under this Warrant
(as adjusted) shall remain the same.  Any adjustment under this
Section 6.1 shall become effective automatically at the close of business
on the date the subdivision or combination becomes effective, or as of the
record date of such dividend, or in the event that no record date is fixed, upon
the making of such dividend.

    

    6.2           Reclassification,
Reorganization and Consolidation.  In case of any reclassification,
capital reorganization, or change in the capital stock of the Company (other
than as a result of a subdivision, combination, or stock dividend provided for
in Section 6.1 above), then the Company shall make appropriate provision so
that the Holder shall have the right at any time prior to the expiration of this
Warrant to purchase, at a total price equal to that payable upon the exercise of
this Warrant, the kind and amount of shares of stock and other securities and
property receivable in connection with such reclassification, reorganization, or
change by a holder of the same number of shares of Common Stock as were
purchasable by the Holder immediately prior to such reclassification,
reorganization, or change.  In any such case appropriate provisions
shall be made with respect to the rights and interest of the Holder so that the
provisions hereof shall thereafter be applicable with respect to any shares of
stock or other securities and property deliverable upon exercise hereof, and
appropriate adjustments shall be made to the purchase price per Warrant Share
payable hereunder, provided the aggregate purchase price shall remain the
same.

    
      
         

      

      
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    6.3           Notice of Adjustment.
When any adjustment is required
to be made in the number or kind of shares purchasable upon exercise of this
Warrant, or in the Exercise Price, the Company shall promptly notify the Holder
of such event and of the number of Shares or other securities or property
thereafter purchasable upon exercise of this Warrant.

    

    6.4           Computation of Adjusted
Exercise Price. Commencing on the Issue Date and continuing until this
Warrant is either exercised in full or expires, in case the Company shall at any
time after the date hereof issue or sell, other than in connection with any
Excepted Issuances (as such term is defined in the Note) any (i) shares of
Common Stock or preferred shares convertible into Common Stock, or (ii) debt,
warrants, options or other instruments or securities which are convertible into
or exercisable for shares of Common Stock (together herein referred to as “Equity
Securities”), in each case for consideration (or with a conversion price)
per common share less than the Exercise Price in effect immediately prior to the
issuance or sale of such securities or instruments, or without consideration,
then forthwith upon such issuance or sale, the Exercise Price shall (until
another such issuance or sale) be automatically reduced to the price (calculated
to the nearest full cent) equal to the price (or conversion price) of any such
securities or instruments; provided, however, that in no
event shall the Exercise Price be adjusted pursuant to this computation to an
amount in excess of the Exercise Price in effect immediately prior to such
computation. For the purposes of this Section 6.4, the term Exercise Price shall
mean the Exercise Price per share set forth in Section 1 hereof, as adjusted
from time to time pursuant to the provisions of this Section. Promptly upon the
occurrence of such an event, and in any event not less than ten (10) business
days after such an occurrence, the Company shall notify the Holder in writing of
the event, disclose to the Holder the new Exercise Price, and provide to the Holder copies of all relevant
documents related to such event, even if the event was or should be disclosed
publicly.

     

    7.         Certificate as to
Adjustments. In each case of any adjustment or readjustment in the shares
of Common Stock issuable on the exercise of the Warrants, the Company at its
expense will promptly cause its Chief Financial Officer or other appropriate
designee to compute such adjustment or readjustment in accordance with the terms
of the Warrant and prepare a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based, including a statement of (a) the consideration received
or receivable by the Company for any additional shares of Common Stock issued or
sold or deemed to have been issued or sold, (b) the number of shares of Common
Stock outstanding or deemed to be outstanding, and (c) the Exercise Price and
the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the Holder of the Warrant and any
Warrant Agent of the Company (appointed pursuant to Section 9
hereof).

    

    8.           Transfer to Comply with the
Securities Act. This Warrant has not been registered under the 1933 Act
and has been issued to the Holder for investment and not with a view to the
distribution of either the Warrant or the Warrant Shares. Neither this Warrant
nor any of the Warrant Shares or any other security issued or issuable upon
exercise of this Warrant may be sold, transferred, pledged or hypothecated
without (i) an effective registration statement under the Act relating to such
security or (ii) an opinion of counsel satisfactory to the Company that
registration is not required under the Act. Each certificate for the Warrant,
the Warrant Shares and any other security issued or issuable upon exercise of
this Warrant shall contain a legend on the face thereof, in form and substance
satisfactory to counsel for the Company, setting forth the restrictions on
transfer contained in this Section. Any such transfer shall be accompanied by a
transferor assignment substantially in the form of EXHIBIT B, executed by the
transferor and the transferee and submitted to the Company.

    

    
      
         

      

      
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    9.           Warrant Agent. The
Company may, by written notice to the Holder of the Warrant, appoint an agent (a
“Warrant
Agent”) for the purpose of issuing Common Stock on the exercise of this
Warrant pursuant hereto, exchanging this Warrant pursuant hereto, and replacing
this Warrant pursuant hereto, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such Warrant Agent.

    

    10.           Transfer on the Company’s
Books. Until this Warrant is transferred on the books of the Company, the
Company may treat the registered holder hereof as the absolute owner hereof for
all purposes, notwithstanding any notice to the contrary.

    

    11.           Notices.  Any
notice required or permitted hereunder shall be given in manner provided in the
subsection headed “Notices” in the Purchase Agreement, the terms of which are
incorporated herein by reference.

    

    12.          Supplements and Amendments;
Whole Agreement.   This Warrant may be amended or
supplemented only by an instrument in writing signed by the parties hereto. This
Warrant contains the full understanding of the parties hereto with respect to
the subject matter hereof and thereof and there are no representations,
warranties, agreements or understandings other than expressly contained herein
and therein.

    

    13.           Governing
Law.  This Warrant shall be governed by, and construed in
accordance with, the internal laws of the State of Illinois, without reference
to the choice of law provisions thereof. The Company and, by accepting this
Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of
the courts of the State of Illinois located in Cook County and any United States
District Court for the Northern District of Illinois for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Warrant
and the transactions contemplated hereby. Service of process in connection with
any such suit, action or proceeding may be served on each party hereto anywhere
in the world by the same methods as are specified for the giving of notices
under this Warrant.  The Company and, by accepting this Warrant, the
Holder, each irrevocably consents to the jurisdiction of any such court in any
such suit, action or proceeding and to the laying of venue in such court. The
Company and, by accepting this Warrant, the Holder, each irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought
in such courts and irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.
EACH OF THE COMPANY AND, BY ITS
ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY
IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS
BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

    

    
      
         

      

      
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    14.           Remedies. The Company
stipulates that the remedies at law of the Holder of this Warrant in the event
of any default or threatened default by the Company in the performance of or
compliance with any of the terms of this Warrant are not and will not be
adequate and that, to the fullest extent permitted by law, such terms may be
specifically enforced by a decree for the specific performance of any agreement
contained herein or by an injunction against a violation of any of the terms
hereof or otherwise.

    

    15.           Counterparts. This
Warrant may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.
Signature delivered via facsimile or email shall be considered original
signatures for purposes hereof.

    

    16.           Descriptive
Headings.  Descriptive headings of the several Sections of this
Warrant are inserted for convenience only and shall not control or affect the
meaning or construction of any of the provisions hereof.

    

    [Remainder
of page intentionally left blank]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
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    IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed by an officer thereunto
duly authorized.

    

    Dated:
January 28, 2010

    

    
      	 
      	
              HELIX
      WIND, CORP.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      /s/ Ian
      Gardner                                                   
      

            
	 
      	 
      
	 
      	
              Ian
      Gardner                                                               
      

            
	 
      	
              (Print
      Name)

            
	 
      	 
      
	 
      	
              CEO                                                                           
      

            
	 
      	
              (Title)

            

    

    

    
      
         

      

      
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    EXHIBIT
A

    

    NOTICE OF
EXERCISE OF WARRANT

    

    TO:           HELIX
WIND, CORP.

    ATTN: _______________

    VIA FAX
TO: (    )______________

    

    The undersigned hereby irrevocably
elects to exercise the right, represented by the Warrant to Purchase Shares of
Common Stock dated as of  , 20 , to purchase
 shares of the Common Stock, $0.0001 par value (“Common
Stock”), of HELIX WIND,
CORP. and tenders herewith payment in accordance with Section 2 of said
Common Stock Purchase Warrant, as follows:

     

    
    

     

    
      	_______   	CASH:
      $__________________________ = (Exercise Price x Exercise
  Shares)
	 	 
	_______   	Payment is being
      made by:
	 	_______   	
              enclosed
      check

            
	 	_______ 	wire
    transfer
	 	_______ 	other
	 	 	 
	_______ 	CASHLESS
      EXERCISE
	 	 
	 	Net number of
      Warrant Shares to be issued to Holder: ______*
	 	 
	 	
              *
      based
      on:                      Current Market Value -
      (Exercise Price x Exercise Shares)

                                                                        
      Adjusted Price of Common Stock

            
	 	 
	 	
              Where:

              Market
      Price of Common Stock [“MP”]                 =           $____________

              Current
      Market Value [MP x Exercise
      Shares]       =           $____________

              Adjusted
      Price of Common
      Stock                           =           $____________

            

    

     

     

    

    It is the
intention of the Holder to comply with the provisions of Section 2.2 of the
Warrant regarding certain limits on the Holder’s right to exercise thereunder.
The Holder believes this exercise complies with the provisions of said Section
2.2. Nonetheless, to the extent that, pursuant to the exercise effected hereby,
the Holder would have more shares than permitted under said Section, this notice
should be amended and revised, ab initio, to refer to the
exercise which would result in the issuance of shares consistent with such
provision. Any exercise above such amount is hereby deemed void and
revoked.

    

    As
contemplated by the Warrant, this Notice of Exercise is being sent by facsimile
to the fax number and officer indicated above.

    

    If this
Notice of Exercise represents the full exercise of the outstanding balance of
the Warrant, the Holder either (1) has previously surrendered the Warrant to the
Company or (2) will surrender (or cause to be surrendered) the Warrant to the
Company at the address indicated above by express courier within five (5)
Trading Days after delivery or facsimile transmission of this Notice of
Exercise.

    
      
         

      

      
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    The
certificates representing the Warrant Shares should be transmitted by the
Company to the Holder

    

    _______ via express courier,
or

    

    _______ by electronic
transfer

    

    after
receipt of this Notice of Exercise (by facsimile transmission or otherwise)
to:

    

    _____________________________________

    _____________________________________

    _____________________________________

    

    

    Dated:           _____________________

    

    

    ___________________________

    [Name of
Holder]

    

    By:________________________

    

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
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    EXHIBIT
B

    

    FORM OF
TRANSFEROR ENDORSEMENT

    (To be
signed only on transfer of Warrant)

    

    For value
received, the undersigned hereby sells, assigns, and transfers unto the
person(s) named below under the heading “Transferees” the right represented by
the within Warrant to purchase the percentage and number of shares of Common
Stock of HELIX WIND, CORP. to which the within Warrant relates specified under
the headings “Percentage Transferred” and “Number Transferred,” respectively,
opposite the name(s) of such person(s) and appoints each such person Attorney to
transfer its respective right on the books of HELIX WIND, CORP. with full power
of substitution in the premises.

    

    
      	
              Transferees

            	
              Percentage Transferred
      

            	
              Number
      Transferred

            

    

    

    

    

    

    Dated:___________,
______

    

    
      	 
      	
              ______________________________

            
	 
      	
              [Transferor
      Name must conform to the
      name of

            
	 
      	
              Holder
      as specified on face of Warrant]

            
	 
      	 
      
	 
      	
              By:
      ___________________________

            
	 
      	
              Name:
      _________________________

            

    

    

    Signed in
the presence of:

    

    _________________________

    (Name)

    

    

    ACCEPTED
AND AGREED:

    

    _________________________

    [TRANSFEREE]

    

    By:
_______________________

    Name:
_____________________

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        11helix_ex1004.htm

 

    
      

    

    
 Exhibit
10.4

    STOCK
PLEDGE AGREEMENT

    

    This STOCK PLEDGE AGREEMENT (“Agreement”)
is entered into as of the 27th day of January, 2010 by and between St. George
Investments, LLC, an Illinois limited liability company, its successors or
assigns (the “Secured
Party”), with its principal executive office at 303 East Wacker Drive,
Suite 311, Chicago, Illinois 60601, and Ian Gardner, an individual residing at
1848 Commercial Street, San Diego, California 92113 (the “Pledgor”).

    

    A.           Effective
as of the date hereof, Secured Party loaned to Helix Wind, Corp, a Nevada
corporation (the “Maker”),
certain funds (the “Loan”)
evidenced by a Convertible Secured Promissory Note of even date herewith in the
principal amount of $780,000.00 made by the Maker in favor of the Secured Party
(the “Note”).

    

    B.           The
Pledgor is a primary and significant stockholder of the Maker and shall
materially benefit from the Loan and other financial accommodations granted to
the Maker pursuant to the Note.

    

    C.           The
Pledgor has agreed to pledge certain securities of the Maker to secure the
Maker’s performance of its obligations under the Note.

    

    D.           The
Secured Party is willing to accept the Note only upon receiving the Pledgor’s
pledge of certain stock as set forth in this Agreement.

    

    NOW, THEREFORE, in consideration of
$10.00, the premises, the mutual covenants and conditions contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as
follows:

    

    

    1.           Grant of Security
Interest.  The Pledgor hereby pledges to the Secured Party as
collateral and security for the Secured Obligations (as defined in Section 2) the
securities initially set forth on the attached Schedule 1 of this Agreement,
signed in blank and together with medallion guaranteed stock powers and an
irrevocable instruction letter to the transfer agent (the “Transfer
Agent”) of the Maker’s common stock (the “Pledged
Shares”).  Among other Events of Default under the Note, if, at
any time prior to the repayment in full of the Note, the market value of the
Collateral (as defined below) does not equal or exceed five hundred percent
(500%) of the Outstanding Amount (as defined in the Note) of the Note, then an
Event of Default under the Note shall occur and the Secured Party shall have the
rights and remedies set forth therein and herein. The Pledgor is the beneficial
and record owner of the Pledged Shares set forth on such
Schedule.  Such Pledged Shares, together with any additions,
replacements, accessions or substitutes therefor or proceeds thereof, are
hereinafter referred to collectively as the “Collateral.”
For purposes of this Section 1, the market value of the Collateral shall be
Conversion Price (as defined in the Note).

    

    2.           Secured
Obligations.  During the term hereof, the Collateral shall
secure the performance by the Maker of its Obligations under the Note (the
“Secured
Obligations”).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    3.           Perfection of Security
Interests.

    

    (a)    
Upon execution of this Agreement, the Pledgor shall deliver the Pledged Shares,
together with Stock Powers (signed in blank and with Medallion Guarantees
annexed), to the Secured Party.

    

    (b)     The Pledgor
will, at its own expense, cause to be searched the public records with respect
to the Collateral and will execute, deliver, file and record (in such manner and
form as the Secured Party may require), or permit the Secured Party to file and
record, as the Pledgor’s attorney-in-fact, any financing statements, any carbon,
photographic or other reproduction of a financing statement or this Agreement
(which shall be sufficient as a financing statement hereunder), any specific
assignments or other paper that may be reasonably necessary or desirable, or
that the Secured Party may request, in order to create, preserve, perfect or
validate any Security Interest or to enable the Secured Party to exercise and
enforce its rights hereunder with respect to any of the
Collateral.  The Pledgor hereby appoints the Secured Party as the
Pledgor’s attorney-in-fact to execute in the name and behalf of the Pledgor such
additional financing statements as the Secured Party may request.

    

    4.           Assignment.  In
connection with the transfer of the Note in accordance with its terms, the
Secured Party may assign or transfer the whole or any part of its security
interest granted hereunder, and may transfer as collateral security the whole or
any part of its security interest in the Collateral.  Any transferee
of the Collateral shall be vested with all of the rights and powers of the
Secured Party hereunder with respect to the Collateral.

    

    5.           Representations and
Warranties of the Pledgor.

    

    A.           Title. The Pledgor
represents and warrants hereby to the Secured Party as follows with respect to
the Pledged Shares:

    

    (i)           The
Collateral is free and clear of any encumbrances of every nature whatsoever, and
the Pledgor is the sole owner of the Pledged Shares;

    

    (ii)          The
Pledgor further agrees not to grant or create, any security interest, claim,
lien, pledge or other encumbrance with respect to such Collateral or attempt to
sell, transfer or otherwise dispose of the Collateral, until the Secured
Obligations have been paid in full or this Agreement terminates;
and

    

    (iii)         This
Agreement constitutes a legal, valid and binding obligation of the Pledgor
enforceable in accordance with its terms (except as the enforcement thereof may
be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium, and similar laws now or hereafter in effect).

    

    B.           Other.

    

    (i)         
The Pledgor has made necessary inquiries of the Maker and believes that the
Maker fully intends to fulfill and has the capability of fulfilling the Secured
Obligations to be performed by the Maker in accordance with the terms of the
Note.

    

    (ii)         The
Pledgor is not acting, and has not agreed to act, in any plan to sell or dispose
of any Pledged Shares in a manner intended to circumvent the registration
requirements of the Securities Act of 1933, as amended, or any applicable state
law.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (iii)        The
Pledgor has been advised by counsel of the elements of a bona-fide pledge for
purposes of Rule 144(d)(3)(iv) under the Securities Act of 1933, as amended,
including the relevant SEC interpretations, and affirms that the pledge of
shares by the undersigned pursuant to this Pledge Agreement will constitute a
bona-fide pledge of such shares for purposes of such Rule.

    

    6.           Collection of Dividends and
Interest.  During the term of this Agreement and so long as the
Pledgor is not in default under the Note, the Pledgor is authorized to collect
all dividends, distributions, interest payments, and other amounts that may be,
or may become, due on any of the Collateral.

    

    7.           Voting
Rights.  During the term of this Agreement and until such time
as this Agreement has terminated or the Secured Party has exercised his rights
under this Agreement to foreclose its security interest in the Collateral, the
Pledgor shall have the right to exercise any voting rights evidenced by, or
relating to, the Collateral.

    

    8.           Warrants and
Options.  In the event that, during the term of this Agreement,
subscription, spin-off, warrants, dividends, or any other rights or option shall
be issued in connection with the Collateral, such warrants, dividends, rights
and options shall be immediately delivered to the Secured Party to be held under
the terms hereof in the same manner as the Collateral.

    

    9.           Preservation of the Value of
the Collateral.  The Pledgor shall pay all taxes, charges, and
assessments against the Collateral and do all acts necessary to preserve and
maintain the value thereof.

    

    10.         The Secured Party as the
Pledgor’s Attorney-in-Fact.

    

    (a)           The
Pledgor hereby irrevocably appoints the Secured Party as the Pledgor’s
attorney-in-fact, with full authority in the place and stead of the Pledgor and
in the name of the Pledgor, the Secured Party or otherwise, from time to time at
the Secured Party’s discretion, to take any action and to execute any instrument
that the Secured Party may reasonably deem necessary or advisable to accomplish
the purposes of this Agreement, including:  (i) upon the occurrence
and during the continuance of an Event of Default (as defined below), to
receive, endorse, and collect all instruments made payable to the Pledgor
representing any dividend, interest payment or other distribution in respect of
the Collateral (as defined in the Note) or any part thereof to the extent
permitted hereunder and to give full discharge for the same and to execute and
file governmental notifications and reporting forms; and (ii) to arrange for the
transfer of the Collateral on the books of the Maker or any other person to the
name of the Secured Party or to the name of the Secured Party’s
nominee.

    

    (b)           In
addition to the designation of the Secured Party as the Pledgor’s
attorney-in-fact in subsection (a), the Pledgor hereby irrevocably appoints the
Secured Party as the Pledgor’s agent and attorney-in-fact to make, execute and
deliver any and all documents and writings which may be necessary or appropriate
for approval of, or be required by, any regulatory authority located in any
city, county, state or country where the Pledgor or the Maker (as defined in the
Note) engages in business, in order to transfer or to more effectively transfer
any of the Pledged Shares or otherwise enforce the Secured Party’s rights
hereunder.

    

    11.         Remedies upon
Default.  Upon the occurrence and during the continuance of an
Event of Default under the Note (“Event of
Default”):

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (a)           The
Secured Party may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a Secured Party on default under applicable law
(irrespective of whether such applies to the affected items of Collateral), and
the Secured Party may also without notice (except as specified below) sell the
Collateral or any part thereof in one or more parcels at public or private sale,
at any exchange, broker’s board or at any of the Secured Party’s offices or
elsewhere, for cash, on credit or for future delivery, at such time or times and
at such price or prices and upon such other terms as the Secured Party may deem
commercially reasonable, irrespective of the impact of any such sales on the
market price of the Collateral.  To the maximum extent permitted by
applicable law, the Secured Party may be the purchaser of any or all of the
Collateral at any such sale and shall be entitled, for the purpose of bidding
and making settlement or payment of the purchase price for all or any portion of
the Collateral sold at any such public sale, to use and apply all or any part of
the Secured Obligations as a credit on account of the purchase price of any
Collateral payable at such sale.  Each purchaser at any such sale
shall hold the property sold absolutely free from any claim or right on the part
of the Pledgor, and the Pledgor hereby waives (to the extent permitted by law)
all rights of redemption, stay, or appraisal that it now has or may at any time
in the future have under any rule of law or statute now existing or hereafter
enacted.  The Pledgor agrees that, to the extent notice of sale shall
be required by law, at least ten (10) calendar days notice to the Pledgor of the
time and place of any public sale or the time after which a private sale is to
be made shall constitute reasonable notification.  The Secured Party
shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given.  The Secured Party may adjourn any public or
private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.  To the maximum extent permitted
by law, the Pledgor hereby waives any claims against the Secured Party arising
because the price at which any Collateral may have been sold at such a private
sale was less than the price that might have been obtained at a public sale,
even if the Secured Party accepts the first offer received and does not offer
such Collateral to more than one offeree.

    

    (b)           The
Pledgor hereby agrees that any sale or other disposition of the Collateral
conducted in conformity with reasonable commercial practices of banks, insurance
companies, or other financial institutions in the city and state where the
Secured Party is located in disposing of property similar to the Collateral
shall be deemed to be commercially reasonable.

    

    (c)           The
Pledgor hereby acknowledges that the sale by the Secured Party of any Collateral
pursuant to the terms hereof in compliance with the Securities Act of 1933, as
amended, as now in effect or as hereafter amended, or any similar statute
hereafter adopted with similar purpose or effect (the “Securities
Act”), as well as applicable “Blue Sky” or other state securities laws,
may require strict limitations as to the manner in which the Secured Party or
any subsequent transferee of the Collateral may dispose thereof.  The
Pledgor acknowledges and agrees that in order to protect the Secured Party’s
interest it may be necessary to sell the Collateral at a price less than the
maximum price attainable if a sale were delayed or were made in another manner,
such as a public offering under the Securities Act.  The Pledgor has
no objection to sale in such a manner and agrees that the Secured Party shall
have no obligation to obtain the maximum possible price for the
Collateral.  Without limiting the generality of the foregoing, the
Pledgor agrees that, upon the occurrence and during the continuation of an Event
of Default, the Secured Party may, subject to applicable law, from time to time
attempt to sell all or any part of the Collateral by a private placement,
restricting the bidders and prospective purchasers to those who will represent
and agree that they are purchasing for investment only and not for
distribution.  In so doing, the Secured Party may solicit offers to
buy the Collateral or any part thereof for cash, from a limited number of
investors reasonably believed by the Secured Party to be institutional investors
or other accredited investors who might be interested in purchasing the
Collateral.  If the Secured Party shall solicit such offers, then the
acceptance by the Secured Party of one of the offers shall be deemed to be a
commercially reasonable method of disposition of the Collateral.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (d)           If
the Secured Party shall determine to exercise its right to sell all or any
portion of the Collateral pursuant to this Section, then the Pledgor agrees
that, upon request of the Secured Party, the Pledgor, at its own expense,
shall:

    

    (i)           execute
and deliver, or cause the officers and directors of the Maker to execute and
deliver, to any person, entity or governmental authority as the Secured Party
may choose, any and all documents and writings which, in the Secured Party’s
reasonable judgment, may be necessary or appropriate for approval, or be
required by, any regulatory authority located in any city, county, state or
country where the Pledgor or the Maker engage in business, in order to transfer
or to more effectively transfer the Pledged Interests or otherwise enforce the
Secured Party’s rights hereunder;

    

    (ii)          do
or cause to be done all such other acts and things as may be necessary to make
such sale of the Collateral or any part thereof valid and binding and in
compliance with applicable law; and

    

    (iii)         cause
the Maker to timely file all periodic reports required to be filed by the Maker
under the Securities Exchange Act of 1934, as amended.

    

    The
Pledgor acknowledges that there is no adequate remedy at law for failure by him
to comply with the provisions of this Section 11 and that
such failure would not be adequately compensable in damages, and therefore
agrees that his agreements contained in this Section 11 may be
specifically enforced.

    

    (e)           THE
PLEDGOR EXPRESSLY WAIVES TO THE MAXIMUM EXTENT PERMITTED BY LAW:  (i)
ANY CONSTITUTIONAL OR OTHER RIGHT TO A JUDICIAL HEARING PRIOR TO THE TIME THE
SECURED PARTY DISPOSES OF ALL OR ANY PART OF THE COLLATERAL AS PROVIDED IN THIS
SECTION; (ii) ALL RIGHTS OF REDEMPTION, STAY, OR APPRAISAL THAT HE NOW HAS OR
MAY AT ANY TIME IN THE FUTURE HAVE UNDER ANY RULE OF LAW OR STATUTE NOW EXISTING
OR HEREAFTER ENACTED; AND (iii) EXCEPT AS SET FORTH IN SUBSECTION (a) OF
THIS SECTION
11, ANY REQUIREMENT OF NOTICE, DEMAND, OR ADVERTISEMENT FOR
SALE.

    

    12.           
(a)           Term of
Agreement.  This Agreement shall continue in full force and
effect until payment in full of the Note.  Upon payment in full of the
Note, the security interests in the relevant Collateral shall be deemed
released, and any portion of the Collateral not transferred to or sold by the
Secured Party shall be returned to the Pledgor.  Upon termination of
this Pledge Agreement, the relevant Collateral shall be returned within five (5)
trading days to the Pledgor, as contemplated above.

    

    (b)           Application of
Proceeds.  Upon the occurrence and during the continuance of an
Event of Default, any cash held by the Secured Party as Collateral and all cash
proceeds received by the Secured Party in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral pursuant to
the exercise by the Secured Party of its remedies as a secured creditor as
provided in Section
11 shall be applied from time to time by the Secured Party as provided in
the Note.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    13.         Indemnity and
Expenses.  The Pledgor agrees:

    

    (a)           To
indemnify and hold harmless the Secured Party and each of its agents and
affiliates from and against any and all claims, damages, demands, losses,
obligations, judgments and liabilities (including, without limitation,
reasonable attorneys’ fees and expenses) in any way arising out of or in
connection with this Agreement or the Secured Obligations, except to the extent
the same shall arise as a result of the gross negligence or willful misconduct
of the party seeking to be indemnified; and

    

    (b)           To
pay and reimburse the Secured Party upon demand for all reasonable costs and
expenses (including, without limitation, reasonable attorneys’ fees and
expenses) that the Secured Party may incur in connection with (i) the custody,
use or preservation of, or the sale of, collection from or other realization
upon, any of the Collateral, including the reasonable expenses of re-taking,
holding, preparing for sale or lease, selling or otherwise disposing of or
realizing on the Collateral, (ii) the exercise or enforcement of any rights or
remedies granted hereunder, under the Note or otherwise available to it (whether
at law, in equity or otherwise), or (iii) the failure by the Pledgor to perform
or observe any of the provisions hereof.  The provisions of this Section 13 shall
survive the execution and delivery of this Agreement, the repayment of any of
the Secured Obligations, the termination of the commitments of the Secured Party
under the Note and the termination of this Agreement.

    

    14.         Duties of the Secured
Party.  The powers conferred upon the Secured Party hereunder
are solely to protect its interests in the Collateral and shall not impose on it
any duty to exercise such powers.  Except as provided in Section 9-207
of the Uniform Commercial Code, the Secured Party shall have no duty with
respect to the Collateral or any responsibility for taking any necessary steps
to preserve rights against any Persons with respect to any
Collateral.

    

    15.         Choice of Law and Venue;
Submission to Jurisdiction; Service of Process.

    

    (a)           THE
VALIDITY OF THIS AGREEMENT, ITS CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT,
AND THE RIGHTS OF THE PARTIES HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS (WITHOUT
REFERENCE TO THE CHOICE OF LAW PRINCIPLES THEREOF).  THE PARTIES AGREE
THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT SHALL
BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE
COUNTY OF COOK, STATE OF ILLINOIS OR, AT THE SOLE OPTION OF THE SECURED PARTY,
IN ANY OTHER COURT IN WHICH THE SECURED PARTY SHALL INITIATE LEGAL OR EQUITABLE
PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER IN
CONTROVERSY.

    

    (b)           THE
PLEDGOR HEREBY SUBMITS FOR HIMSELF AND IN RESPECT OF HIS PROPERTY, GENERALLY AND
UNCONDITIONALLY, TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES, TO THE
EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT HE MAY HAVE TO ASSERT THE
DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY
PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

    

    (c)           THE
PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT, OR OTHER
PROCESS ISSUED IN ANY ACTION OR PROCEEDING AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT, OR OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO THE PLEDGOR AT HIS ADDRESS FOR NOTICES IN ACCORDANCE WITH THIS
AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF
THE PLEDGOR’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE
UNITED STATES MAILS, PROPER POSTAGE PREPAID.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (d)           NOTHING
IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF THE SECURED
PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO
PRECLUDE THE ENFORCEMENT BY THE SECURED PARTY OF ANY JUDGMENT OR ORDER OBTAINED
IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS AGREEMENT TO ENFORCE SAME
IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION.

    

    16.           Amendments;
etc.   No amendment or waiver of any provision of this
Agreement nor consent to any departure by the Pledgor herefrom shall in any
event be effective unless the same shall be in writing and signed by the Secured
Party, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.  No failure on
the part of the Secured Party to exercise, and no delay in exercising any right
under this Agreement, any other document or documents delivered in connection
with the transactions contemplated by the Note, this Agreement or any other
agreement entered into in conjunction herewith or therewith (all such documents
are hereinafter referred to collectively as the “Loan
Documents”, and each individually as a “Loan
Document”), or otherwise with respect to any of the Secured Obligations,
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right under this Agreement, any other Loan Document, or otherwise with
respect to any of the Secured Obligations preclude any other or further exercise
thereof or the exercise of any other right.  The remedies provided for
in this Agreement or otherwise with respect to any of the Secured Obligations
are cumulative and not exclusive of any remedies provided by law.

    

    17.           Notices.   

     Unless
otherwise specifically provided herein, all notices shall be in writing
addressed to the respective party as set forth below and may be personally
served, faxed, telecopied or sent by overnight courier service or United States
mail:

    

    If to the Pledgor:

    

    Ian Gardner

    1848 Commercial Street

    San Diego,
California  92113

    

    If to the Secured Party:

    

    St. George Investments,
LLC

    Attn: John M. Fife

    303 East Wacker Drive, Suite
301

    Chicago,
Illinois  60601

    

    
      
         

      

      
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    with a copy to (which shall not
constitute notice):

    

    Bennett Tueller Johnson & Deere,
P.C.

    Attn: Jonathan K. Hansen

    3165 East Millrock Drive, Suite
500

    Salt Lake City, Utah
84121

    

    Any
notice given pursuant to this Section 17 shall be
deemed to have been given:  (a) if delivered in person, when
delivered; (b) if delivered by fax, on the date of transmission if transmitted
on a Business Day before 4:00 p.m. at the place of receipt or, if not, on the
next succeeding Business Day (as defined in the Note); (c) if delivered by
overnight courier, two (2) days after delivery to such courier properly
addressed; or (d) if by United States mail, four (4) Business Days after
depositing in the United States mail, with postage prepaid and properly
addressed.  Any party hereto may change the address or fax number at
which it is to receive notices hereunder by notice to the other party in writing
in the foregoing manner.

    

    18.           Continuing Security
Interest.   This Agreement shall create a continuing
security interest in the Collateral and shall:  (a) remain in full
force and effect until the indefeasible payment in full of the Secured
Obligations, including the cash collateralization, expiration, or cancellation
of all Secured Obligations, if any, consisting of letters of credit, and the
full and final termination of any commitment to extend any financial
accommodations under the Note; (b) be binding upon the Pledgor and his
successors and assigns; and (c) inure to the benefit of the Secured Party and
its successors, transferees, and assigns.  Upon the indefeasible
payment in full of the Secured Obligations, including the cash
collateralization, expiration, or cancellation of all Secured Obligations, if
any, consisting of letters of credit, and the full and final termination of any
commitment to extend any financial accommodations under the Note, the security
interests granted herein shall automatically terminate and all rights to the
Collateral shall revert to the Pledgor.  Upon any such termination,
the Secured Party, at the Pledgor’s expense, shall execute and deliver to the
Pledgor such documents as the Pledgor shall reasonably request to evidence such
termination.  Such documents shall be prepared by the Pledgor and
shall be in form and substance reasonably satisfactory to the Secured
Party.

    

    19.           Security Interest
Absolute. To the maximum extent permitted by law, all rights of the
Secured Party, all security interests hereunder, and all obligations of the
Pledgor hereunder, shall be absolute and unconditional irrespective
of:

    

    (a)           any
lack of validity or enforceability of any of the Secured Obligations or any
other agreement or instrument relating thereto, including any of the Loan
Documents;

    

    (b)           any
change in the time, manner, or place of payment of, or in any other term of, all
or any of the Secured Obligations, or any other amendment or waiver of or any
consent to any departure from any of the Loan Documents, or any other agreement
or instrument relating thereto;

    

    (c)           any
exchange, release, or non-perfection of any other collateral, or any release or
amendment or waiver of or consent to departure from any guaranty for all or any
of the Secured Obligations; or

    

    (d)           any
other circumstances that might otherwise constitute a defense available to, or a
discharge of, the Pledgor.

    

    20.           Headings. Section
and subsection headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement or be given any
substantive effect.

    
      
         

      

      
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    21.           Severability.   If
any part of this Agreement is construed to be in violation of any law, such part
shall be modified to achieve the objective of the parties to the fullest extent
permitted by law and the balance of this Agreement shall remain in full force
and effect.

    

    22.           Counterparts; Telefacsimile
Execution.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same Agreement.  Delivery of an
executed counterpart of this Agreement by facsimile or email shall be equally as
effective as delivery of an original executed counterpart of this
Agreement.  Any party delivering an executed counterpart of this
Agreement by facsimile or email also shall deliver an original executed
counterpart of this Agreement but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, or binding effect
hereof.

    

    23.           Waiver of
Marshaling.  Each of the Pledgor and the Secured Party
acknowledges and agrees that in exercising any rights under or with respect to
the Collateral:  (a) the Secured Party is under no obligation to
marshal any Collateral; (b) may, in its absolute discretion, realize upon the
Collateral in any order and in any manner it so elects; and (c) may, in its
absolute discretion, apply the proceeds of any or all of the Collateral to the
Secured Obligations in any order and in any manner it so elects.  The
Pledgor and the Secured Party waive any right to require the marshaling of any
of the Collateral.

    

    24.           Waiver of Jury
Trial.  THE PLEDGOR AND THE SECURED PARTY HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS.  THE PLEDGOR AND THE SECURED PARTY
REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.  IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

    

    25.           Ownership Limitation.
Notwithstanding the provisions of this Agreement, in no event shall the Secured
Party own Collateral to the extent that, after taking into account the Common
Stock then owned by the Secured Party and its affiliates, would result in the
beneficial ownership by the Secured Party and its affiliates of more than 9.99%
of the outstanding Common Stock of the Pledgor.  For purposes of this
paragraph, beneficial ownership shall be determined in accordance with Section
13(d) of the Exchange Act.

    

    

    

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    IN WITNESS WHEREOF, the Pledgor and the
Secured Party have caused this Agreement to be duly executed and delivered by
their officers thereunto duly authorized as of the date first written
above.

    

    
      	 
      	
              THE
      PLEDGOR:

            
	 	 
	 	 
	 
      	
              /s/
      Ian
      Gardner                                                               
      

            
	 
      	
              Ian
      Gardner, an individual

            
	 
      	 
      
	 
      	 
      
	 
      	
              THE
      SECURED PARTY:

            
	 
      	 
      
	 	 
	 
      	
              ST. GEORGE INVESTMENTS,
      LLC,

            
	 
      	
              an
      Illinois limited liability company

            
	 	 
	 	 
	 
      	
              By:    /s/ John M.
      Fife                                                    
      

            
	 
      	
              John
      M. Fife, Manager

            

    

    

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
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    SCHEDULE
1

    

    

    Pledged
Shares:  4,800,000 shares of Common Stock of Helix Wind,
Corp.

    

    Jurisdiction
of Organization:  Nevada

    

    Certificate
Numbers:  3080 and 3081

    

    Percentage
of Outstanding Interests in
Issuer:  _____________________

    

    Date
Acquired:  February 11, 2009

    

    

    

    

    

    

     
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    

    

    
      
         

      

      
        11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]