Document:

gihcexhibit1010111809.htm

     

    
      

      

    

    Exhibit
10.10
 

    NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

     

    
      	 
      	
              Right
      to Purchase 334,905
      shares of Common Stock of Green Irons Holdings Corp. (subject
      to adjustment as provided herein)

            

    

     

    FORM
OF COMMON STOCK PURCHASE WARRANT

    No.
____________                                                               Issue
Date:  November __, 2009

     

    GREEN
IRONS HOLDINGS CORP., a corporation organized under the laws of the State
of Nevada (the “Company”), hereby certifies that, for value received,
______________________, or its assigns (the “Holder”), is entitled, subject to
the terms set forth below, to purchase from the Company at any time commencing
on the Issue Date until 5:00 p.m., P.T. on the fifth anniversary of the Issue
Date (the “Expiration Date”), up to 334,905 fully paid and nonassessable shares
of Common Stock at a per share purchase price of $1.00.  The
aforedescribed purchase price per share, as adjusted from time to time as herein
provided, is referred to herein as the “Purchase Price.”  The number
and character of such shares of Common Stock and the Purchase Price are subject
to adjustment as provided herein.  The Company may reduce the Purchase
Price for some or all of the Warrants, temporarily or
permanently.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth in that certain Senior Secured Convertible
Promissory Note (the “Promissory
Note”), dated as of November 18, 2009, entered into by the Company and
the Holder in connection with the Holder’s purchase of certain debt securities
of the Company.

     

    As used
herein the following terms, unless the context otherwise requires, have the
following respective meanings:

     

    (a)           The
term “Company” shall include Green Irons Holdings Corp., and any corporation
that shall succeed or assume the obligations of Green Irons Holdings Corp.
hereunder.

     

    (b)           The
term “Common Stock” includes (a) the Company’s common stock, $.001 par value per
share, as authorized on the date of the Promissory Note, and (b) any other
securities into which or for which any of the securities described in (a) may be
converted or exchanged pursuant to a plan of recapitalization, reorganization,
merger, sale of assets or otherwise.

     

    (c)           The
term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) that the
holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common
Stock, or which at any time shall be issuable or shall have been issued in
exchange for or in replacement of Common Stock or Other Securities pursuant to
Section 4 or otherwise.

     

    (d)           The
term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this
Warrant.

     

    
      
        
          November
18, 2009

        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.           Exercise
of Warrant.

     

    1.1.       Number
of Shares Issuable upon Exercise.  From and after the Issue
Date through and including the Expiration Date, the Holder hereof shall be
entitled to receive, upon exercise of this Warrant in whole in accordance with
the terms of subsection 1.2 or upon exercise of this Warrant in part in
accordance with subsection 1.3, shares of Common Stock of the Company, subject
to adjustment pursuant to Section 4.

     

    1.2.       Full
Exercise.  This Warrant may be exercised in full by the Holder
hereof by delivery of an original or facsimile copy of the form of subscription
attached as Exhibit A hereto (the “Subscription Form”) duly executed by such
Holder and delivery within two days thereafter of payment, in cash, wire
transfer or by certified or official bank check payable to the order of the
Company, in the amount obtained by multiplying the number of shares of Common
Stock for which this Warrant is then exercisable by the Purchase Price then in
effect.  The original Warrant is not required to be surrendered to the
Company until it has been fully exercised.

     

    1.3.       Partial
Exercise.  This Warrant may be exercised in part (but not for a
fractional share) by delivery of a Subscription Form in the manner and at the
place provided in subsection 1.2 except that the amount payable by the Holder on
such partial exercise shall be the amount obtained by multiplying (a) the number
of whole shares of Common Stock designated by the Holder in the Subscription
Form by (b) the Purchase Price then in effect.  On any such partial
exercise provided the Holder has surrendered the original Warrant, the Company,
at its expense, will forthwith issue and deliver to or upon the order of the
Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or
as such Holder (upon payment by such Holder of any applicable transfer taxes)
may request, the whole number of shares of Common Stock for which such Warrant
may still be exercised.

     

    1.4.       Fair
Market Value.  Fair Market Value of a share of Common Stock as
of a particular date (the “Determination Date”) shall mean:

     

    (a)           If
the Company’s Common Stock is listed, traded, or quoted on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York
Stock Exchange, the American Stock Exchange, LLC, the OTC Bulletin Board, or the
Pink OTC Markets Inc., then the average of the closing or last sale prices,
respectively, reported for the ten trading days immediately preceding the
Determination Date;

     

    (b)           If
the Company’s Common Stock is not listed, traded, or quoted on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York
Stock Exchange, the American Stock Exchange, LLC, the OTC Bulletin Board, or the
Pink OTC Markets Inc., but is traded in the over-the-counter market, then the
average of the closing bid and ask prices reported for the ten trading days
immediately preceding the Determination Date;

     

    (c)           Except
as provided in clause (d) below and Section 3.1, if the Company’s Common Stock
is not so publicly listed, traded or quoted, then as the Holder and the Company
agree, or in the absence of such an agreement, by arbitration in accordance with
the rules then standing of the American Arbitration Association, before a single
arbitrator to be chosen from a panel of persons qualified by education and
training to pass on the matter to be decided with such arbitration to be
conducted in New York City, New York; or

     

    (d)           If
the Determination Date is the date of a liquidation, dissolution or winding-up,
or any event deemed to be a liquidation, dissolution, or winding-up pursuant to
the Company’s charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then issuable
upon exercise of all of the Warrants are outstanding at the Determination
Date.

     

    
      
        
          November
18, 2009

        

      

      
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    1.5.       Company
Acknowledgment.  The Company will, at the time of the exercise
of the Warrant, upon the request of the Holder hereof, acknowledge in writing
its continuing obligation to afford to such Holder any rights to which such
Holder shall continue to be entitled after such exercise in accordance with the
provisions of this Warrant.  If the Holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company
to afford to such Holder any such rights.

     

    1.6.       Trustee
for Warrant Holders.  In the event that a bank or trust company
shall have been appointed as trustee for the Holder of the Warrants pursuant to
Subsection 3.2, 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 this Section
1.

     

    1.7        Delivery
of Stock Certificates, etc. on Exercise.  The Company agrees
that the Warrant Shares shall be deemed to be issued to the Holder hereof as the
record owner of such shares as of the close of business on the date on which
delivery of a Subscription Form shall have occurred and payment made for such
shares as aforesaid.  As soon as practicable after the exercise of
this Warrant in full or in part, and in any event within ten (10) business days
thereafter (“Warrant Share Delivery Date”), the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the Holder hereof, or as such Holder
(upon payment by such Holder of any applicable transfer taxes) may direct in
compliance with applicable securities laws, a certificate or certificates for
the number of duly and validly issued, fully paid and non-assessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on
such exercise, plus, in lieu of any fractional share to which such Holder would
otherwise be entitled, cash equal to such fraction multiplied by the then Fair
Market Value of one full share of Common Stock, together with any other stock or
other securities and property (including cash, where applicable) to which such
Holder is entitled upon such exercise pursuant to Section 1 or
otherwise.  The Company understands that a delay in the delivery of
the Warrant Shares after the Warrant Share Delivery Date could result in
economic loss to the Holder.  As compensation to the Holder for such
loss, the Company agrees to pay (as liquidated damages and not as a penalty) to
the Holder for late issuance of Warrant Shares upon exercise of this Warrant the
proportionate amount of $100 per business day after the Warrant Share Delivery
Date for each $10,000 of Purchase Price of Warrant Shares for which this Warrant
is exercised which are not timely delivered.  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 Shares by the Warrant Share 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.

     

    1.8        Buy-In.  In
addition to any other rights available to the Holder, if the Company fails to
deliver to a Holder the Warrant Shares as required pursuant to this Warrant
within seven (7) business days after the Warrant Share Delivery Date and the
Holder or a broker on the Holder’s behalf purchases (in an open market
transaction or otherwise) shares of common stock to deliver in satisfaction of a
sale by such Holder of the Warrant Shares which the Holder was entitled to
receive from the Company (a “Buy-In”), then the Company shall pay in cash to the
Holder (in addition to any remedies available to or elected by the Holder) the
amount by which (A) the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of common stock so purchased exceeds (B) the
aggregate Purchase Price of the Warrant Shares required to have been delivered,
together with interest thereon at a rate of 15% per annum, accruing until such
amount and any accrued interest thereon is paid in full (which amount shall be
paid as liquidated damages and not as a penalty).  For example, if a
Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to $10,000 of Purchase Price of Warrant Shares to
have been received upon exercise of this Warrant, the Company shall be required
to pay the Holder $1,000, plus interest.  The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In.

     

    
      
        
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18, 2009

        

      

      
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    2.           Cashless
Exercise.

     

    (a)         If
a registration statement (“Registration Statement”) is effective for the public
unrestricted resale of all of the Warrant Shares issuable upon exercise of this
Warrant, this Warrant may be exercised in whole or in part for cash only as set
forth in Section 1 above.  If such Registration Statement is not
available, payment upon exercise may be made at the option of the Holder either
in (i) cash, wire transfer or by certified or official bank check payable
to the order of the Company equal to the applicable aggregate Purchase Price,
(ii) by delivery of Common Stock issuable upon exercise of the Warrants in
accordance with Section (b) below or (iii) by a combination of any of the
foregoing methods, for the number of Common Stock specified in such form (as
such exercise number shall be adjusted to reflect any adjustment in the total
number of shares of Common Stock issuable to the holder per the terms of this
Warrant) and the holder shall thereupon be entitled to receive the number of
duly authorized, validly issued, fully-paid and non-assessable shares of Common
Stock (or Other Securities) determined as provided herein.

     

    (b)         Subject
to the provisions herein to the contrary, if the Fair Market Value of one share
of Common Stock is greater than the Purchase Price (at the date of calculation
as set forth below), in lieu of exercising this Warrant for cash, the holder may
elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed Subscription
Form in which event the Company shall issue to the holder a number of shares of
Common Stock computed using the following formula:

     

    X=Y
(A-B)

    A

     

    Where  X=      
the number of shares of Common Stock to be issued to the
holder

     

    
      	
               
      

            	
              Y=

            	
              the
      number of shares of Common Stock purchasable under the Warrant or, if only
      a portion of the Warrant is being exercised, the portion of the Warrant
      being exercised (at the date of such
  calculation)

            

    

     

    
      	
               
      

            	
              A=

            	
              the
      average of the closing sale prices of the Common Stock for the ten (10)
      Trading Days immediately prior to (but not including) the Exercise Date,
      (or if no such closing prices are available, then the Fair Market
      Value)

            

    

     

    
      	
               
      

            	
              B=

            	
              Purchase
      Price (as adjusted to the date of such
  calculation)

            

    

     

    For
purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood,
and acknowledged that the Warrant Shares issued in a cashless exercise
transaction shall be deemed to have been acquired by the Holder, and the holding
period for the Warrant Shares shall be deemed to have commenced, on the date
this Warrant was originally issued pursuant to the Promissory Note.

     

    
      
        
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18, 2009

        

      

      
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    3.           Adjustment
for Reorganization, Consolidation, Merger, etc.

     

    3.1.       Fundamental
Transaction.  If, at any time while this Warrant is
outstanding, (A) the Company effects any merger or consolidation of the
Company with or into another entity, (B) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions, (C)
any tender offer or exchange offer (whether by the Company or another entity) is
completed pursuant to which holders of Common Stock are permitted to tender or
exchange their shares for other securities, cash or property, (D) the Company
consummates a stock purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with one or more persons or entities whereby such other persons or
entities acquire more than the 50% of the outstanding shares of Common Stock
(not including any shares of Common Stock held by such other persons or entities
making or party to, or associated or affiliated with the other persons or
entities making or party to, such stock purchase agreement or other business
combination), (E) any “person” or “group” (as these terms are used for purposes
of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the “beneficial
owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
50% of the aggregate Common Stock of the Company, or (F) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the
right to receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such Fundamental Transaction, at
the option of the Holder, (a) upon exercise of this Warrant, the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable upon or as a result of such
reorganization, reclassification, merger, consolidation or disposition of assets
by a Holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such event or (b) if the Company is acquired in
(1) a transaction where the consideration paid to the holders of the Common
Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as defined in Rule
13e-3 under the 1934 Act, or (3) a transaction involving a person or entity not
traded on a national securities exchange, the Nasdaq Global Select Market, the
Nasdaq Global Market, or the Nasdaq Capital Market, cash equal to the
Black-Scholes Value.  For purposes of any such exercise, the
determination of the Purchase Price shall be appropriately adjusted to apply to
such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Purchase Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration.  If holders
of Common Stock are given any choice as to the securities, cash, or property to
be received in a Fundamental Transaction, then the Holder shall be given the
same choice as to the Alternate Consideration it receives upon any exercise of
this Warrant following such Fundamental Transaction.  To the extent
necessary to effectuate the foregoing provisions, any successor to the Company
or surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with the foregoing provisions and evidencing the Holder’s
right to exercise such warrant into Alternate Consideration.  The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this Section 3.1 and ensuring that this Warrant (or any
such replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction.  “Black-Scholes
Value” shall be determined in accordance with the Black-Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per
share of Common Stock equal to the VWAP of the Common Stock for the Trading Day
immediately preceding the date of consummation of the applicable Fundamental
Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury
rate for a period equal to the remaining term of this Warrant as of the date of
such request, and (iii) an expected volatility equal to the 100-day volatility
obtained from the HVT function on Bloomberg L.P. determined as of the Trading
Day immediately following the public announcement of the applicable Fundamental
Transaction.

     

    
      
        
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18, 2009

        

      

      
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    3.2.       Dissolution.  In
the event of any dissolution of the Company following the transfer of all or
substantially all of its properties or assets, the Company, prior to such
dissolution, shall at its expense, deliver or cause to be delivered the stock
and other securities and property (including cash, where applicable) receivable
by the Holder of the Warrants after the effective date of such dissolution
pursuant to this Section 3 to a bank or trust company (a “Trustee”) having its
principal office in New York, NY, as trustee for the Holder of the
Warrants.  Such property shall be delivered only upon payment of the
Warrant exercise price.

     

    3.3.       Continuation
of Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this
Section 3, this Warrant shall continue in full force and effect and the terms
hereof shall be applicable to the Other Securities and property receivable on
the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such
transfer, as the case may be, and shall be binding upon the issuer of any Other
Securities, including, in the case of any such transfer, the person acquiring
all or substantially all of the properties or assets of the Company, whether or
not such person shall have expressly assumed the terms of this Warrant as
provided in Section 4.  In the event this Warrant does not continue in
full force and effect after the consummation of the transaction described in
this Section 3, then only in such event will the Company’s securities and
property (including cash, where applicable) receivable by the Holder of the
Warrants be delivered to the Trustee as contemplated by Section
3.2.

     

    4.           Extraordinary
Events Regarding Common Stock.  In the event that the Company
shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Purchase Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Purchase Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Purchase Price then in effect. The
Purchase Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this Section
4.  The number of shares of Common Stock that the Holder of this
Warrant shall thereafter, on the exercise hereof, be entitled to receive shall
be adjusted to a number determined by multiplying the number of shares of Common
Stock that would otherwise (but for the provisions of this Section 4) be
issuable on such exercise by a fraction of which (a) the numerator is the
Purchase Price that would otherwise (but for the provisions of this Section 4)
be in effect, and (b) the denominator is the Purchase Price in effect on the
date of such exercise.

     

    5.           Certificate
as to Adjustments.  In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) 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 (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Purchase 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 12
hereof).

     

    
      
        
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    6.           Reservation
of Stock, etc. Issuable on Exercise of Warrant; Financial
Statements.  The Company will at all times reserve and keep
available, solely for issuance and delivery on the exercise of the Warrants, all
shares of Common Stock (or Other Securities) from time to time issuable on the
exercise of the Warrant.  This Warrant entitles the Holder hereof to
receive copies of all financial and other information distributed or required to
be distributed to the holders of the Company’s Common Stock.

     

    7.           Assignment;
Exchange of Warrant.  Subject to compliance with applicable
securities laws, this Warrant, and the rights evidenced hereby, may be
transferred by any registered holder hereof (a “Transferor”). On the surrender
for exchange of this Warrant, with the Transferor’s endorsement in the form of
Exhibit B attached hereto (the “Transferor Endorsement Form”) and together with
an opinion of counsel reasonably satisfactory to the Company that the transfer
of this Warrant will be in compliance with applicable securities laws, the
Company will issue and deliver to or on the order of the Transferor thereof a
new Warrant or Warrants of like tenor, in the name of the Transferor and/or the
transferee(s) specified in such Transferor Endorsement Form (each a
“Transferee”), calling in the aggregate on the face or faces thereof for the
number of shares of Common Stock called for on the face or faces of the Warrant
so surrendered by the Transferor.

     

    8.           Replacement
of Warrant.  On receipt of evidence reasonably satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant and,
in the case of any such loss, theft or destruction of this Warrant, on delivery
of an indemnity agreement or security reasonably satisfactory in form and amount
to the Company or, in the case of any such mutilation, on surrender and
cancellation of this Warrant, the Company at its expense, twice only, will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

     

    9.           Reserved.

     

    10.           Maximum
Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date in connection with that number of Common Stock which
would be in excess of the sum of (i) the number of Common Stock beneficially
owned by the Holder and its affiliates on an exercise date, and (ii) the number
of shares of Common Stock issuable upon the exercise of this Warrant with
respect to which the determination of this limitation is being made on an
exercise date, which would result in beneficial ownership by the Holder and its
affiliates of more than 4.99% of the outstanding Common Stock on such
date.  For the purposes of the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate exercises which would result in the issuance of more than
4.99%.  The restriction described in this paragraph may be waived, in
whole or in part, upon sixty-one (61) days prior notice from the Holder to the
Company to increase such percentage to up to 9.99%.  The Holder may
allocate which of the equity of the Company deemed beneficially owned by the
Subscriber shall be included in the 4.99% amount described above and which shall
be allocated to the excess above 4.99%.

     

    11.           Reserved.

     

    12.           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 (or Other Securities) on the exercise of this Warrant pursuant to Section
1, exchanging this Warrant pursuant to Section 7, and replacing this Warrant
pursuant to Section 8, 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.

     

    13.           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.

     

    
      
        
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    14.           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally
served, (ii) deposited in the mail, registered or certified, return receipt
requested, postage prepaid, (iii) delivered by reputable air courier service
with charges prepaid, or (iv) transmitted by hand delivery, telegram, or
facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice.  Any notice or
other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur.  The addresses for such communications shall
be:  if to the Company, to:  Green Irons Holdings Corp.,
10497 Town and Country Way, Suite 310, Houston, TX 77024,  Attn: Allan
Millmaker, President, facsimile:  (__) ___-____, with a copy by
facsimile only to:  M2 Law Professional Corporation, 500 Newport
Center Drive, Suite 800, Newport Beach, California 92660,
facsimile:  (949) 706-1475, and (ii) if to the Holder,
__________________ ___________________________________, facsimile (__)
___-____.

     

     

    15.           Law
Governing This Warrant.  This Warrant shall be governed by and
construed in accordance with the laws of the State of Nevada without regard to
principles of conflicts of laws.  Any action brought by either party
against the other concerning the transactions contemplated by this Warrant shall
be brought only in the state courts of Nevada or in the federal courts located
in the State of Nevada.  The parties to this Warrant hereby
irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum
non conveniens.  The Company and Holder waive trial by
jury.  The prevailing party shall be entitled to recover from the
other party its reasonable attorney’s fees and costs.  In the event
that any provision of this Warrant or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform to such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.

     

     

     

     

    
      
        
          
            November
18, 2009

          

        

         

      

      
        8

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first
written above.

     

    GREEN
IRONS HOLDINGS CORP.

     

    By:       /s/ Philip Mann                   

    Philip Mann, Chief
Financial Officer

    
      
        
          November
18, 2009

        

         

      

      
        9

        
          

        

      

      
         

      

    

    Exhibit
A

     

    FORM OF
SUBSCRIPTION

    (to be
signed only on exercise of Warrant)

     

    TO:  GREEN
IRONS HOLDINGS CORP.

     

    The
undersigned, pursuant to the provisions set forth in the attached Warrant
(No.____), hereby irrevocably elects to purchase (check applicable
box):

     

    [___]           ________
shares of the Common Stock covered by such Warrant; or

    [___]           the
maximum number of shares of Common Stock covered by such Warrant pursuant to the
cashless exercise procedure set forth in Section 2.

     

    The
undersigned herewith makes payment of the full purchase price for such shares at
the price per share provided for in such Warrant, which is
$___________.  Such payment takes the form of (check applicable box or
boxes):

     

    [___]           $__________
in lawful money of the United States; and/or

    [___]           the
cancellation of such portion of the attached Warrant as is exercisable for a
total of _______ shares of Common Stock (using a Fair Market Value of $_______
per share for purposes of this calculation); and/or

     

    [___]           the
cancellation of such number of shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2, to exercise this Warrant
with respect to the maximum number of shares of Common Stock purchasable
pursuant to the cashless exercise procedure set forth in Section
2.

    

      The undersigned requests
that the certificates for such shares be issued in the name of, and delivered to
_______________________________________________________________________ whose
address is                                                                                  

                                                                                    

       

    

    The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable upon exercise of the within Warrant shall be made
pursuant to registration of the Common Stock under the Securities Act of 1933,
as amended (the “Securities Act”), or pursuant to an exemption from registration
under the Securities Act.

     

    
      	
              Dated:  _______________,
      ____

            	
              _______________________________________________________________________
      

              (Signature
      must conform to name of holder as specified on the face of the
      Warrant)

               

              _______________________________________________________________________
      

              _______________________________________________________________________
      

              (Address)

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    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 GREEN IRONS HOLDINGS 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 GREEN IRONS
HOLDINGS CORP., with full power of substitution in the premises.

     

     

    
      	
              Transferees

            	
              Percentage
      Transferred

            	
              Number
      Transferred

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

     

     

    
      	
              Dated:  ________________,
      _____

               

               

               

              Signed
      in the presence of:

               

              _____________________________________________________

              (Name)

               

               

              ACCEPTED
      AND AGREED:

              [TRANSFEREE]

               

               

              _____________________________________________________

              (Name)

               

            	
              _______________________________________________________________________
      

              (Signature
      must conform to name of holder as specified on the face of the
      warrant)

               

               

               

              _______________________________________________________________________
      

              _______________________________________________________________________
      

              (address)

               

              _______________________________________________________________________
      

              _______________________________________________________________________
      

              (address)

            

    

     

     

     11gihcexhibit1011111809.htm

    
      

      

    

    Exhibit
10.11

    
 

    SECURITY
AGREEMENT

     

     

    THIS
SECURITY AGREEMENT (this “Agreement”)
is made as of November __, 2009, by and between Green Irons
Holdings  Corp., a Nevada corporation (the “Company”)
and the party executing below as a secured party (collectively, the “Secured
Party”).

     

    RECITALS

     

    A.           Company
has issued to the Secured Party a senior secured convertible promissory note
(the “Note”)
in the principal amount of Three Hundred Thirty Four Thousand Nine Hundred Five
Dollars ($334,905).

     

    B.           In
order to induce Secured Party to acquire the Note from Company, Company has
agreed, among other things, to execute this Agreement.

     

    NOW,
THEREFORE, in consideration of the agreements herein and in reliance upon
the representations and warranties set forth herein and therein, the parties
agree as follows:

     

                       
  ARTICLE
1.                      

    DEFINED
TERMS

     

    1.1          DEFINITIONS.  Unless
otherwise defined herein or unless the context otherwise requires, terms used in
this Agreement, including its preamble and recitals, have the meanings provided
in the Uniform Commercial Code in effect in the State of Nevada (the “UCC”).  In
addition, the following terms when used in this Agreement, including its
preamble and recitals, shall have the following meanings:

     

    “Transaction
Documents” means (a) this Agreement, (b) the Note, and (c) the UCC-1
filed in connection herewith.

     

    “Obligations”
means the payment and performance obligations of Company under any of the
Transaction Documents.

     

                
  ARTICLE
2.                      

    SECURITY
INTEREST

     

               2.1           GRANT
OF SECURITY INTEREST.  To secure the timely payment and
performance in full of the Obligations, Company does hereby assign, grant and
pledge to the Secured Party all of the estate, right, title and interest of
Company in and to the collateral as more fully described on Exhibit
A hereto, whether now owned or later acquired or created, and including
all proceeds of the collateral, whether cash or non-cash (the “Collateral”).

     

    2.2          FINANCING
STATEMENTS.

     

      
(a)    Company
hereby authorizes Secured Party to file this Agreement and all financing
statements, continuation statements, amendments, assignments, collateral
assignments, certificates, and other documents and instruments with respect to
the Collateral pursuant to the UCC and otherwise in any jurisdiction and with
any filing offices (whether state, federal or foreign) as may be necessary or
reasonably requested by such Secured Party to perfect, or from time to time to
publish notice of, or continue or renew, the security interests granted hereby
(including, such financing statements, continuation statements, certificates,
and other documents as may be necessary or reasonably requested to perfect a
security interest in any additional property rights hereafter acquired by
Company or in any replacements, products or proceeds thereof), in each case in
form and substance satisfactory to such Secured Party.

     

      
(b)     Company will
pay the cost of filing such financing statements relating to it in all public
offices where filing is necessary or reasonably requested by Secured Party and
will pay any and all recording, transfer or filing taxes that may be due in
connection with any such filing.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     
(c)    Such
financing statements may describe the Collateral in the same manner as described
herein or may contain an indication or description of collateral that describes
such property in any other manner as Secured Party may reasonably determine is
necessary, advisable or prudent to ensure the perfection of the security
interest in the Collateral granted to Secured Party herein.

     

    ARTICLE
3.

    REPRESENTATIONS
AND WARRANTIES OF DEBTOR

     

    Company
makes the following representations and warranties to and in favor of Secured
Party as of the date hereof.  All of these representations and
warranties shall survive the execution and delivery of this
Agreement:

     

    3.1           OFFICES,
LOCATION OF COLLATERAL.  The chief executive office or chief
place of business of Company is located at 10497 Town and Country Way, Suite
310, Houston, Texas 77024.

     

    3.2           TITLE
AND LIENS.  Company has good, valid, and marketable title to
its respective portion of the Collateral, free from all liens and encumbrances
of any kind, except for (i) normal and customary state or municipal impositions
not yet due and payable, and (ii) purchase money security interests incurred in
the normal course of business.  As a result of this Agreement, Secured
Party will together have a senior priority security interest in the Collateral,
subordinate to no other security interest.

     

    ARTCLE
4.

    COVENANTS
OF DEBTOR

     

    Company
covenants to and in favor of Secured Party as follows:

     

    4.1          COMPLIANCE
WITH OBLIGATIONS.  Company shall perform and comply in all
material respects with all obligations and conditions on its part to be
performed with respect to the Collateral.

     

    4.2          EVENTS
OF DEFAULT.  Company shall give to Secured Party prompt notice
of any material default with respect to the Collateral of which Company has
knowledge or has received notice.

     

    4.3           PRESERVATION
OF VALUE; LIMITATION OF LIENS.  Company shall not take any
action in connection with the Collateral which would impair in any material
respect the respective interests or rights of Secured Party therein or with
respect thereto, except as expressly permitted hereby; provided,
however, that nothing in this Agreement shall prevent Company, prior to
the exercise by Secured Party of any of its respective rights pursuant to the
terms hereof, from undertaking Company’s operations in the ordinary course of
business.  Company shall not directly or indirectly create, incur,
assume or suffer to exist any liens on or with respect to all or any part of the
Collateral senior to or pari passu with the liens created by this Agreement,
except for the Permitted Encumbrances.  Company shall at its own cost
and expense promptly take such action as may be necessary to discharge any such
liens.

     

    4.4          MAINTENANCE
OF RECORDS.  Company shall, at all times, keep accurate and
complete records of its respective portion of the Collateral.  Company
shall permit representatives of Secured Party, upon reasonable prior notice, at
any time during normal business hours of the Company to inspect and make
abstracts from Company’s books and records pertaining to the
Collateral.  Upon the occurrence and during the continuation of any
Event of Default, at Secured Party’s request, Company shall promptly deliver
copies of any and all such records to Secured Party.

     

    4.5          PAYMENT
OF TAXES.  Company shall pay or cause to be paid, before any
fine, penalty, interest or cost attaches thereto, all taxes, assessments and
other governmental or non-governmental charges or levies (other than those taxes
that it is contesting in good faith and by appropriate proceedings, and in
respect of which it has established adequate reserves for such taxes) now or
hereafter assessed or levied against the Collateral pledged by it hereunder and
shall retain copies of, and, upon request, permit Secured Party to examine
receipts showing payment of any of the foregoing.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    4.6          NAME;
JURISDICTION OF ORGANIZATION.  Company shall give Secured Party
at least 30 days prior written notice before Company changes its name,
jurisdiction of organization or entity type and shall at the expense of Company
execute and deliver such instruments and documents as may be required by Secured
Party or applicable legal requirements to maintain their senior perfected
security interests in the Collateral subject to the Permitted
Encumbrances.

     

    4.7          PROCEEDS
OF COLLATERAL.  Company shall, at all times, keep pledged to
Secured Party pursuant hereto all Collateral and all dividends, distributions,
interest, principal and other proceeds received by the Company with respect
thereto, and all other Collateral and other securities, instruments, proceeds
and rights from time to time received by or distributable to Company in respect
of any Collateral, and shall not permit any issuer of such Collateral to issue
any shares of stock or other equity interests which shall not have been
immediately duly pledged to Secured Party hereunder.

     

    ARTICLE
5.

    RIGHTS
AND REMEDIES

     

    5.1          EVENT
OF DEFAULT DEFINED.  Any breach of the provisions of this
Agreement which is not cured within fifteen calendar (15) days of written notice
from Secured Party or any event of default under any of the Transaction
Documents following expiration of any applicable notice and grace periods as
described in the Transaction Documents will constitute an "Event
of Default" hereunder.

     

    5.2          REMEDIES
UPON EVENT OF DEFAULT.

     

      
(a)           During any
period during which an Event of Default shall have occurred and be continuing,
Secured Party may (but shall be under no obligation to), directly or by using
agent or broker:

     

          
(i) 
proceed
to protect and enforce the rights vested in it by this Agreement and under the
UCC;

     

         
(ii) 
cause all
moneys and other property pledged as security to be paid and/or delivered
directly to it, and demand, sue for, collect and receive any such moneys and
property;

     

         
(iii) 
cause any
action at law or suit in equity or other proceeding to be instituted and
prosecuted to collect or enforce any Obligations of Company or rights included
in the Collateral, or for specific enforcement of any covenant or agreement
contained herein, or in aid of the exercise of any power therein or herein
granted, or for any foreclosure hereunder and sale under a judgment or decree in
any judicial proceeding, or to enforce any other legal or equitable right vested
in it by this Agreement or by law;

     

         
(iv) 
foreclose
or enforce any other agreement or other instrument by or under or pursuant to
which the Obligations of any Company are issued or secured;

     

         
(v) 
subject
to Section
5.2(b), sell, lease or otherwise dispose of any or all of the Collateral,
in one or more transactions, at such prices as Secured Party may deem best, and
for cash or on credit or for future delivery, without assumption of any credit
risk, at any broker’s board or at public or private sale, without demand of
performance or notice of intention to sell, lease or otherwise dispose of, or of
time or place of disposition (except such notice as is required by applicable
statute and cannot be waived), it being agreed that Secured Party may be
purchasers or lessees on their own behalf at any such sale and that Secured
Party or anyone else who may be the purchaser, lessee or recipient for value of
any or all of the Collateral so disposed of shall, upon such disposition,
acquire all of Company’s rights therein.  Secured Party may adjourn
any public or private sale or cause the same to be adjourned from time to time
by announcement at the time and place fixed for the same, and such sale may,
without further notice or publication, be made at any time or place to which the
same may be so adjourned.  If Secured Party sells any of the
Collateral upon credit, after reasonable inquiry as to the credit worthiness of
the purchaser, Company will be credited only with payments actually made by the
purchaser, received by Secured Party and applied to the indebtedness of the
purchaser.  In the event the purchaser fails to pay for the
Collateral, Secured Party may resell the Collateral and Company shall be
credited with the proceeds of the sale;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

         
(vi) 
incur
expenses, including reasonable attorneys’ fees, consultants’ fees, and other
costs appropriate to the exercise of any right or power under this
Agreement;

     

         
(vii) 
perform
any obligation of Company hereunder and make payments, purchase, contest or
compromise any encumbrance, charge, or lien, and pay taxes and
expenses;

     

         
(viii) 
make any
reasonable compromise or settlement deemed desirable with respect to any or all
of the Collateral and extend the time of payment, arrange for payment
installments, or otherwise modify the terms of, any or all of the
Collateral;

     

         
(ix) 
secure
the appointment of a receiver of any or all of the Collateral;

     

          (x) 
exercise
any other or additional rights or remedies granted to Secured Party under any
other provision of this Agreement or exercisable by a secured party under the
UCC, whether or not the UCC applies to the affected Collateral, or under any
other applicable law and take any other action which Secured Party deem
necessary or desirable to protect or realize upon their security interests in
the Collateral or any part thereof; and/or

     

         
(xi) 
appoint a
third party (who may be an employee, officer or other representative of Secured
Party) to do any of the foregoing, or take any other action permitted hereunder,
on behalf of  Secured Party.

     

     
(b)    If,
pursuant to any law, prior notice of any action described in Section 5.2(a)
is required to be given to Company, Company hereby acknowledges that the minimum
time required by such law, or if no minimum is specified, ten days, shall be
deemed a reasonable notice period.

     

     
(c)            Any action
or proceeding to enforce this Agreement may be taken by Secured Party either in
a Company’s name or in Secured Party’s name, as Secured Party may deem
necessary.

     

    
      	
               (i)    
       

            	
              All
      rights of marshalling of assets of Company, including any such right with
      respect to the Collateral, are hereby waived by
  Company.

            

    

     

    
      	
              (ii)   
        

            	
              Secured
      Party shall incur no liability as a result of the sale of any or all of
      the Collateral at any private sale pursuant to Section 5.2(a)
      conducted in a commercially reasonable manner.  Company hereby
      waives any claims against Secured Party arising by reason of the fact that
      the price at which any or all of the Collateral may have been sold at such
      a private sale was less than the price that might have obtained at a
      public sale or was less than the aggregate amount of the Obligations, even
      if Secured Party accepts the first offer received and does not offer the
      Collateral to more than one
offeree.

            

    

     

    5.3          ATTORNEY-IN-FACT.  Upon
the occurrence and during the continuation of an Event of Default, the Company
hereby irrevocably constitutes and appoints Secured Party as its true and lawful
attorney-in-fact to enforce all rights of such Company with respect to the
Collateral, including the right to give appropriate receipts, releases and
satisfactions for and on behalf of and in the name of the Company or, at the
option of Secured Party, in the name of Secured Party, with the same force and
effect as the Company could do if this Agreement had not been
made.  If Secured Party shall so elect after the occurrence and during
the continuation of an Event of Default hereunder, Secured Party shall have the
right at all times to settle, compromise, adjust, or liquidate all claims or
disputes directly with the Company or any obligor of the Company upon such terms
and conditions as Secured Party may determine in its sole discretion, and to
charge all costs and expenses thereof (including reasonable attorneys’ fees and
charges) to the Company’s account and to add them to the Obligations whereupon
such costs and expenses shall be and become part of the
Obligations.  This power of attorney is a power coupled with an
interest and shall be irrevocable.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.4           EXPENSES;
INTEREST.  All costs and expenses (including reasonable
attorneys’ fees and expenses) incurred by Secured Party in connection with
exercising any actions taken under Article 5, together with interest thereon (to
the extent permitted by law) computed at a rate of 10% per annum (or if less,
the maximum rate permitted by law) from the date on which such costs or expenses
are invoiced to and become payable by Company, to the date of payment thereof,
shall constitute part of the Obligations secured by this Agreement and shall be
paid by Company to Secured Party within 10 days after written
demand.

     

    5.5           NO
IMPAIRMENT OF REMEDIES.  If under applicable law, Secured Party
proceeds by either judicial foreclosure or by non-judicial sale or enforcement,
Secured Party may, at its sole option, determine which of its remedies or rights
to pursue without affecting any of its respective rights and remedies under this
Agreement.  If, by exercising any right and remedy, Secured Party
forfeits any of its other rights or remedies, including any right to enter a
deficiency judgment against Company or any third party (whether because of any
applicable law pertaining to “election of remedies” or the like), Company
nevertheless hereby consents to such action by Secured Party.  To the
extent permitted by applicable law, Company also waives any claim based upon
such action, even if such action by Secured Party results in a full or partial
loss of any rights of subrogation, indemnification or reimbursement which
Company might otherwise have had but for such action by Secured Party or the
terms herein.  Any election of remedies which results in the denial or
impairment of the right of Secured Party to seek a deficiency judgment against
any third party shall not, to the extent permitted by applicable law, impair
Company’s obligations hereunder.  If Secured Party bids at any
foreclosure or trustee’s sale or at any private sale permitted by law or this
Agreement, Secured Party may bid all or less than the amount of the
Obligations.  To the extent permitted by applicable law, the amount of
the successful bid at any such sale, whether Secured Party or any other party is
the successful bidder, shall be conclusively deemed to be the fair market value
of the Collateral and any deficiency between such bid amount and the remaining
balance of the Obligations shall be conclusively deemed to be the amount of the
Obligations.

     

    ARTICLE
6.

    CERTAIN
WAIVERS

     

    6.1           MODIFICATION
OF OBLIGATIONS.  Company’s liability hereunder shall not be
reduced, limited, impaired, discharged or terminated if Secured Party at any
time, without notice to or demand of Company (unless specifically required by
the Transaction Documents):

     

      
(a)   
renews,
extends, accelerates, or otherwise changes the time, place, manner or terms, or
otherwise modifies any of the Obligations (including any payment
terms);

     

      
(b)   
extends
or waives the time for Company’s performance of, or compliance with, any term,
covenant or agreement on its part to be performed or observed under the
Transaction Documents, or waives such performance or compliance or consents to a
failure of, or departure from, such performance or compliance;

     

      
(c)   
settles,
compromises, releases or discharges, or accepts or refuses any offer of
performance with respect to, or substitutions for, any of the Obligations or any
agreement relating thereto and/or subordinates the payment of the same to the
payment of any other obligations;

     

      
(d)   
requests
and accepts other guaranties of any of the Obligations and takes and holds
security for the payment hereof or any of the Obligations;

     

      
(e)   
releases,
surrenders, exchanges, substitutes, compromises, settles, rescinds, waives,
alters, subordinates or modifies, with or without consideration, any security
for payment of any of the Obligations, any other guaranties of any of the
Obligations, or any other obligation of any third party with respect to any of
the Obligations;

     

      
(f)   
to the
extent permitted by law, enforces and applies any security, if any, now or
hereafter held by or for the benefit of Secured Party in respect hereof or any
of the Obligations and directs the order or manner of sale thereof, or exercises
any other right or remedy that Secured Party may have against any such security,
in each case as Secured Party in its discretion may determine, including
foreclosure on any collateral pursuant to one or more judicial or nonjudicial
sales, whether or not every aspect of any such sale is commercially reasonable;
or

     

      
(g)   
exercises
any other rights available to it under any of the Transaction Documents, at law
or in equity.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    6.2           SECURITY
INTERESTS ABSOLUTE.  All rights of the Secured Party and the
security interests hereunder, and all obligations of Company hereunder, shall be
absolute and unconditional irrespective of:

     

      
(a)   
any
failure or omission to assert or enforce or agreement or election not to assert
or enforce, or the stay or enjoining, by order of court, by operation of law or
otherwise, of the exercise or enforcement of, any claim or demand or any right,
power or remedy (whether arising under any of the Transaction Documents, at law,
in equity or otherwise) with respect to any of the Obligations or any agreement
relating thereto, or with respect to any other guaranty of or security for the
payment of any of the Obligations;

     

      
(b)   
any
rescission, waiver, amendment or modification of, or any consent to departure
from, any of the terms or provisions (including provisions relating to events of
default) hereof, in any other Transaction Documents or any agreement or
instrument executed pursuant thereto, or of any other guaranty or security for
any of the Obligations, in each case, whether or not in accordance with the
terms hereof or any other Transaction Documents or any agreement relating to
such other guaranty or security;

     

      
(c)   
the
application of payments received from any source to the payment of indebtedness
of Company to Secured Party other than the Obligations, even though Secured
Party might have elected to apply such payment to any part or all of the
Obligations;

     

      
(d)   
Secured
Party’s consent to the change, reorganization or termination of the corporate
structure or existence of Company and to any corresponding restructuring of any
of the Obligations;

     

      
(e)   
any other
act or thing or omission, or delay to do any other act or thing, which may or
might in any manner or to any extent vary the risk of Company as an obligor in
respect of any of the Obligations;

     

      
(f)   
any
Obligations or any agreement relating thereto, at any time being found to be
illegal, invalid or unenforceable in any respect

     

      
(g)   
any
defenses, set-offs or counterclaims which Company may allege or assert against
Secured Party in respect of the Obligations; and

     

      
(h)   
whether
Secured Party makes, or does not or fails to make, any additional loan to
Company subsequent to the date hereof.

     

    6.3           CERTAIN
WAIVERS.  Company hereby waives any and all defenses afforded
to a surety, including promptness, diligence, notice of acceptance and any other
notice with respect to any of the Obligations and this Agreement and any
requirement that Secured Party protect, secure, perfect or insure any security
interest or lien, or any property subject thereto, or exhaust any right or take
any action against Company or any other third party or entity or any collateral
securing any of the Obligations, as the case may be.

     

    6.4           POSTPONEMENT
OF SUBROGATION.  Company agrees that it will not exercise any
rights which it may acquire by way of rights of subrogation under this
Agreement, by any payment made hereunder or otherwise, while this Agreement is
in effect, unless such action is required to stay or prevent the running of any
applicable statute of limitations.  Any amount paid to Company on
account of any such subrogation rights prior to such time shall be held in trust
for Secured Party and shall immediately be paid to Secured Party and credited
and applied against the Obligations.  Any time after this Agreement
has terminated and if Company has made payment to Secured Party of all of the
Obligations, or if an action is required to stay or prevent the running of any
applicable statute of limitations, then, at Company’s request, Secured Party
will execute and deliver to Company appropriate documents (without recourse and
without representation or warranty) necessary to evidence the transfer by
subrogation to Company of an interest in the Obligations resulting from such
payment by Company.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    ARTICLE
7.

    MISCELLANEOUS
PROVISIONS

     

    7.1          NOTICE.  All
notices or other communications required or permitted to be given hereunder
shall be made in writing and shall be considered given (a) when made if made by
hand delivery, (b) one business day after being deposited with an overnight
courier if made by a courier guaranteeing overnight delivery, (c) on the date
indicated on the notice of receipt if made by first-class United States mail,
with return receipt requested, and (d) upon confirmation if made by
telecopier.  Any party shall have the right to change its address for
notice hereunder to any other location within the continental United States by
giving of notice to the other parties in the manner set forth
hereinabove.

     

    7.2          DELAY
AND WAIVER; REMEDIES CUMULATIVE.  No failure or delay by
Secured Party in exercising any right or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any
other right or power.  Any waiver, permit, consent or approval of any
kind or character on the part of Secured Party of any breach or default under
the Agreement or any waiver on the part of Secured Party of any provision or
condition of this Agreement must be in writing and shall be effective only to
the extent in such writing specifically set forth.  No right, power or
remedy herein conferred upon or reserved to Secured Party hereunder is intended
to be exclusive of any other right, power or remedy, and every such right, power
and remedy shall, to the extent permitted by law, be cumulative and in addition
to every other right, power and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or
remedy.  Resort to any or all security now or hereafter held by
Secured Party may be taken concurrently or successively and in one or several
consolidated or independent judicial actions or lawfully taken nonjudicial
proceedings, or both.

     

    7.3          ENTIRE
AGREEMENT.  This Agreement and any agreement, document or
instrument referred to herein integrate all the terms and conditions mentioned
herein or incidental hereto and supersede all oral negotiations and prior
writings in respect of the subject matter hereof.

     

    7.4          GOVERNING
LAW.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada, exclusive of its conflict of
laws rules.

     

    7.5          SEVERABILITY.  In
case any one or more of the provisions contained in this Agreement should be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

     

    7.6          HEADINGS.  Paragraph
headings have been inserted in this Agreement as a matter of convenience for
reference only and it is agreed that such paragraph headings are not a part of
this Agreement and shall not be used in the interpretation of any provision of
this Agreement.

     

    7.7          WAIVER
OF JURY TRIAL.  THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY, AND
INTENTIONALLY WAIVE ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY COURSE OR CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN), OR ACTIONS OF SECURED PARTY.  THIS PROVISION IS A
MATERIAL INDUCEMENT FOR SECURED PARTY TO MAKE THE LOAN.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    7.8          CONSENT
TO JURISDICTION.  Each party hereto agrees that any legal
action or proceeding with respect to or arising out of this Agreement may be
brought in or removed to the federal or state courts located in Clark County,
Nevada, as Secured Party may elect.  By execution and delivery of this
Agreement, each party hereto accepts, for themselves and in respect of their
property, generally and unconditionally, the jurisdiction of the aforesaid
courts.  Each of the parties hereto irrevocably consents to the
service of process out of any of the aforementioned courts in any manner
permitted by law.  Nothing herein shall affect the right of Secured
Party to bring legal action or proceedings in any other competent
jurisdiction.  Each party hereto hereby waives any right to stay or
dismiss any action or proceeding under or in connection with this Agreement
brought before the foregoing courts on the basis of forum
non-conveniens.

     

    7.9          SUCCESSORS
AND ASSIGNS.  This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and
assigns.

     

    7.10        COUNTERPARTS.  This
Agreement may be executed in one or more duplicate counterparts and when signed
by all of the parties listed below, shall constitute a single binding
agreement.  Delivery of an executed signature page of this Agreement
by facsimile transmission shall be as effective as delivery of a manually
executed counterpart thereof.

     

    7.11        BENEFIT
OF AGREEMENT.  Nothing in this Agreement, express or implied,
shall give or be construed to give, any person other than the parties hereto and
their respective successors, transferees and assigns any legal or equitable
right, remedy or claim under this Agreement, or under any covenants and
provisions of this Agreement, each such covenant and provision being for the
sole benefit of the parties hereto and their respective successors, transferees
and assigns.

     

    7.12        AMENDMENTS
AND WAIVERS.  No amendment, modification, termination or waiver
of any provision of this Agreement or consent to any departure therefrom shall
be effective unless the same shall be in writing and signed by each of the
parties hereto.  Each amendment, modification, termination or waiver
shall be effective only in the specific instance and for the specific purpose
for which it was given.

     

    7.13        SURVIVAL
OF AGREEMENTS.  The provisions regarding the payment of
expenses and indemnification obligations shall survive and remain in full force
and effect until terminated pursuant to Section 7.14 (unless reinstated pursuant
to section 7.15).

     

    7.14        RELEASE
AND SATISFACTION.  Upon the indefeasible payment (whether in
cash and/or other consideration which is satisfactory to Secured Party in its
sole discretion) and performance in full of the Obligations, (i) this Agreement
and the security interests created hereby shall terminate and Secured Party will
return the Collateral, including all documentation evidencing or affecting the
Collateral, and (ii) upon written request of Company, Secured Party shall
execute and deliver to Company, at Company’s expense and without representation
or warranty by or recourse to Secured Party, releases and satisfactions of all
financing statements, mortgages, notices of assignment and other registrations
of security.

     

    7.15        REINSTATEMENT.  This
Agreement shall continue to be effective or be automatically reinstated, as the
case may be, if at any time any payment pursuant to this Agreement is rescinded
or must otherwise be restored or returned upon the insolvency, bankruptcy,
reorganization, liquidation of Company or upon the dissolution of, or
appointment of any intervenor or conservator of, or trustee or similar official
for, Company or any substantial part of Company’s assets, or otherwise, all as
though such payments had not been made.

     

    7.16        LIMITATION
ON DUTY OF SECURED PARTY WITH RESPECT TO THE COLLATERAL.  The
powers conferred on Secured Party hereunder are solely to protect its respective
interests in the Collateral and shall not impose any duty on Secured Party or
any of its designated agents to exercise any such powers.  Except for
the safe custody of any Collateral in its possession and the accounting for
monies actually received by it hereunder, Secured Party shall have no duty with
respect to any Collateral and no implied duties or obligations shall be read
into this Agreement against Secured Party.  Secured Party shall be
deemed to have exercised reasonable care in the custody and preservation of the
Collateral in its possession if the Collateral is accorded treatment that is
substantially equivalent to that which Secured Party accords its own property,
it being expressly agreed, to the maximum extent permitted by applicable law,
that Secured Party shall have no responsibility for (a) taking any necessary
steps to preserve rights against any parties with respect to any Collateral or
(b) taking any action to protect against any diminution in value of the
Collateral, but, in each case, Secured Party may do so and all expenses
reasonably incurred in connection therewith shall be part of the
Obligations.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the undersigned have executed this Security Agreement as
of the date first above written.

     

    Company:

     

                                                                      GREEN
IRONS HOLDINGS CORP.

    a Nevada
corporation

     

    By:       /s/ Philip
Mann______________________    

    Philip
Mann

    Its:        Chief
Financial Officer

     

    Secured
Party:

     

    _____________________________________

     

     

     

     

    By:  ___________________________

     

    Its:  ___________________________

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

     

     

     

    EXHIBIT
A

    DESCRIPTION
OF COLLATERAL

     

     

    All
assets of Green Irons Holdings Corp., a Nevada corporation referred to herein as
the “Company”, which are specified below:

     

               Equipment:  All
equipment means all goods, machinery, furniture, furnishings, fixtures, tools,
supplies, motor vehicles and all other property used or useful in the business
of the Company, now or hereafter owned or possessed or hereafter acquired by the
Company, and including specifically (without limitation) all accessions thereto,
all substitutions and replacements thereof, and all deposits made on any such
equipment;

     

    Deposit
Accounts and Other Cash: All deposits and deposit accounts with any bank,
savings and loan association, credit union or like organization, and all funds
and amounts therein, and whether or not held in trust, or in custody or
safekeeping, or otherwise restricted or designated for a particular purpose, and
all other cash or marketable securities on hand, whether held in-vault or
otherwise;

     

    Receivables:
Each and every right of the Company to the payment of money, whether such right
to payment now exists or hereafter arises, whether such right to payment arises
out of a sale, lease or other disposition of goods or other property, out of a
rendering of services, or of a loan, out of the overpayment of taxes or other
liabilities, or any other transaction or event, whether such right to payment is
created, generated or earned by the Company or by some other person who
subsequently transfers his, her or its interest to the Company, whether such
right to payment is or is not already earned by performance, and howsoever such
right to payment may be evidenced, together with all other rights and interests
(including all liens and other security interests) which the Company may at any
time have by law or agreement against any account debtor or other person
obligated to make such payment or against any property of such account debtor or
other persons including, but not limited to, all present and future accounts,
contract rights, chattel paper, bonds, notes and other debt instruments, and
rights to payment in the nature of general intangibles;

     

    General
Intangibles: All general intangibles of the Company whether now owned or
hereafter acquired, including (without limitation) all general intangibles (as
defined in the UCC); and

     

    Securities:
All securities, joint venture and other equity interests now owned or
hereafter acquired by the Company.

     

    The collateral shall
include (i) all substitutes and replacements for and proceeds of any and all of
the foregoing property, and in the case of all tangible collateral, all
accessions, accessories, attachments, parts, equipment and repairs now or
hereafter attached or affixed to or use in connection with any such goods and
(ii) all warehouse receipts, bills of lading and other documents of titles now
or hereafter covering such goods.

     

     10

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