Document:

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE
SECURITIES ARE CONVERTIBLE 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.

     

    
      	
              Principal
      Amount: Up to $_____________

            	
              Issue
      Date: February ___, 2010

            

     

    SECURED CONVERTIBLE
PROMISSORY NOTE

    

    FOR VALUE
RECEIVED, GLEN ROSE PETROLEUM
CORPORATION, a Delaware corporation (hereinafter called “Borrower”), hereby promises to
pay to the order of IROQUOIS
CAPITAL OPPORTUNITY FUND, LP (the “Holder”), maintaining an
address at 641 Lexington Avenue, 26th Floor,
New York, NY 10022, Fax Number: 212-207-3452without demand, the sum of up to
[REQUIRES
COMPLETION] Dollars ($____________) (“Principal Amount”), with
interest accruing thereon, on February ___, 2012 (the “Maturity Date”), if not sooner
paid.

    

    This Note
has been entered into pursuant to the terms of a subscription agreement among
the Borrower, the Holder and certain other holders (the “Other Holders”) of convertible
promissory notes (the “Other
Notes”), dated of even date herewith (the “Subscription Agreement”) for
up to an aggregate Principal Amount of up to $3,000,000.  Unless
otherwise separately defined herein, all capitalized terms used in this Note
shall have the same meaning as is set forth in the Subscription
Agreement.  The following terms shall apply to this Note:

    

    ARTICLE
I

    

    GENERAL
PROVISIONS

    

    1.1      
   Interest
Rate.   Cash interest payable on this Note shall accrue at
the annual rate of eight percent (8%) from the Issue Date through the Maturity
Date.  Interest payable by increasing the Principal Amount of this
Note (“PIK Interest”) in
lieu of paying cash interests subject to the conditions stated below shall
accrue at the annual rate of twelve percent (12%).  Interest shall be
payable quarterly in arrears on the last day of each calendar quarter commencing
March 31, 2010, and on the Maturity Date, accelerated or otherwise, when the
principal and remaining accrued but unpaid interest shall be due and payable, or
sooner as described below.  Provided an Event of Default (as described
in Article IV)
or an event which with the passage of time or the giving of notice could become
an Event of Default, has not occurred, then for interest accruing through one
hundred and eighty days after the Issue Date, the Borrower may elect to pay
accrued interest on this Note by delivery to Holder of an executed and completed
Allonge, in the
form annexed hereto as Exhibit
A.  The Holder may elect to receive PIK Interest in lieu of
cash interest from and after 181 days after the Issue Date.  In such
event the Holder must notify Borrower not later than fifteen days before a
quarterly interest due date of such election and Borrower must deliver an
executed and completed Allonge on the quarterly interest due
date.  Failure to timely deliver an Allonge is an Event of
Default.  Unless the Borrower elects to deliver an Allonge or the
Holder elects to receive an Allonge as described above, interest must be paid at
the cash rate of interest.

    
      
         

      

      
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    1.2  
       Payment
Grace Period.  The Borrower shall not
have any grace period to pay any monetary amounts due under this
Note.  After the Maturity Date and during the pendency of an Event of
Default, a default interest rate of fifteen percent (15%) per annum shall be in
effect.

    

    1.3   
      Conversion
Privileges.  The Conversion Rights set forth in Article II shall
remain in full force and effect immediately from the date hereof and until the
Note is paid in full regardless of the occurrence of an Event of
Default.  This Note shall be payable in full on the Maturity Date,
unless previously converted into Common Stock in accordance with Article II
hereof.

    

    1.4     
    Pari
Passu.   All payments made on this Note and the Other
Notes and except as otherwise set forth herein all actions taken by the Borrower
with respect to this Note and the Other Notes, including but not limited to
optional redemption, shall be made and taken pari passu with respect to
this Note and the Other Notes.

    

    1.5      
   Miscellaneous.   Interest
on this Note shall be calculated on the basis of a 360-day year and the actual
number of days elapsed.  Principal and interest on this Note and other
payments in connection with this Note shall be payable at the Holder’s offices
as designated above in lawful money of the United States of America in
immediately available funds without set-off, deduction or
counterclaim.  Upon assignment of the interest of Holder in this Note,
Borrower shall instead make its payment pursuant to the assignee’s instructions
upon receipt of written notice thereof.

    

    ARTICLE
II

    

    CONVERSION
RIGHTS

    

    The
Holder shall have the right to convert the principal and any interest due under
this Note into Shares of the Borrower’s Common Stock, $0.001 par value per share
(“Common Stock”) as set
forth below.

    

    2.1.       
 Conversion into
the Borrower’s Common Stock.

    

    (a)          The
Holder shall have the right from and after the date of the issuance of this Note
and then at any time until this Note is fully paid, to convert any outstanding
and unpaid principal portion of this Note, and accrued interest, at the election
of the Holder (the date of giving of such notice of conversion being a “Conversion Date”) into fully
paid and non-assessable shares of Common Stock as such stock exists on the date
of issuance of this Note, or any shares of capital stock of Borrower into which
such Common Stock shall hereafter be changed or reclassified, at the conversion
price as defined in Section 2.1(b)
hereof, determined as provided herein.  Upon delivery to the Borrower
of a completed Notice of Conversion, a form of which is annexed hereto as Exhibit B, Borrower shall
issue and deliver to the Holder within three (3) business days after the
Conversion Date (such third day being the “Delivery Date”) that number of
shares of Common Stock for the portion of the Note converted in accordance with
the foregoing.  The Holder will not be required to surrender the Note
to the Borrower until the Note has been fully converted or
satisfied.  The number of shares of Common Stock to be issued upon
each conversion of this Note shall be determined by dividing that portion of the
principal of the Note and interest, if any, to be converted, by the Conversion
Price.

    

    (b)          Subject
to adjustment as provided in Section 2.1(c)
hereof, the conversion price (“Conversion Price”) per share
shall be $0.30.

    
      
         

      

      
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    (c)          The
Conversion Price and number and kind of shares or other securities to be issued
upon conversion determined pursuant to Section 2.1(a), shall
be subject to adjustment from time to time upon the happening of certain events
while this conversion right remains outstanding, as follows:

    

    A.           Merger, Sale of Assets,
etc.  If (A) the Borrower effects any merger
or  consolidation of the Borrower with or into another entity, (B) the
Borrower 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 Borrower 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 Borrower 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), provided, however,
that this provision shall not apply to the ownership of the Common Stock by
Blackwood Ventures, LLC or Blackwood Capital, Ltd, or their Affiliates,
individually or acting as a group, (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 Borrower),
provided, however, that this provision shall not apply to the ownership of the
Common Stock by Blackwood Ventures, LLC or Blackwood Capital, Ltd, or their
Affiliates, individually or acting as a group, or (F) despite the restriction
contained in Section 9(y) of the subscription Agreement, if the Borrower
violates such restriction and 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
(other than a reverse merger)  (in any such case, a “Fundamental  Transaction”), this
Note, as to the unpaid principal portion thereof and accrued interest thereon,
if any, shall thereafter be deemed to evidence the right to convert into such
number and kind of shares or other securities and property as would have been
issuable or distributable on account of such Fundamental Transaction, upon or
with respect to the securities subject to the conversion right immediately prior
to such Fundamental Transaction.  The foregoing provision shall
similarly apply to successive Fundamental Transactions of a similar nature by
any such successor or purchaser.  Without limiting the generality of
the foregoing, the anti-dilution provisions of this Section shall apply to such
securities of such successor or purchaser after any such Fundamental
Transaction.

    

    B.           Reclassification,
etc.  If the Borrower at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes that may be issued or outstanding, this Note,
as to the unpaid principal portion thereof and accrued interest thereon, shall
thereafter be deemed to evidence the right to purchase an adjusted number of
such securities and kind of securities as would have been issuable as the result
of such change with respect to the Common Stock immediately prior to such
reclassification or other change.

    

    C.           Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

    

    
      
         

      

      
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    D.          Share
Issuance.   So long as this Note is outstanding, if the
Borrower shall issue any Common Stock except for the Excepted Issuances (as
defined in Section 12(a) and Schedule 12(a) of the Subscription Agreement),
prior to the complete conversion or payment of this Note, for a consideration
per share that is less than the Conversion Price that would be in effect at the
time of such issue, then, and thereafter successively upon each such issuance,
the Conversion Price shall be reduced to such other lower issue
price.  For purposes of this adjustment, the issuance of any security
or debt instrument of the Borrower carrying the right to convert such security
or debt instrument into Common Stock or of any warrant, right or option to
purchase Common Stock shall result in an adjustment to the Conversion Price upon
the issuance of the above-described security, debt instrument, warrant, right,
or option and again upon the issuance of shares of Common Stock upon exercise of
such conversion or purchase rights if such issuance is at a price lower than the
then applicable Conversion Price. Common Stock issued or issuable by the
Borrower for no consideration will be deemed issuable or to have been issued for
$0.001 per share of Common Stock.  The reduction of the Conversion
Price described in this paragraph is in addition to the other rights of the
Holder described in the Subscription Agreement.

    

    (d)          When
ever the Conversion Price is adjusted pursuant to Section 2.1(c) above,
the Borrower shall promptly but not later than the third day after the
effectiveness of the adjustment, provide notice to the Holder setting forth the
Conversion Price after such adjustment and setting forth a statement of the
facts requiring such adjustment.  Failure to provide the foregoing
notice is an Event of Default under this Note.

    

    (e)          During
the period the conversion right exists, Borrower will reserve from its
authorized and unissued Common Stock not less than an amount of Common Stock
equal to 150% of the amount of shares of Common Stock issuable upon the full
conversion of this Note.  Borrower represents that upon issuance, such
shares will be duly and validly issued, fully paid and
non-assessable.  Borrower agrees that its issuance of this Note shall
constitute full authority to its officers, agents, and transfer agents who are
charged with the duty of executing and issuing stock certificates to execute and
issue the necessary certificates for shares of Common Stock upon the conversion
of this Note.

    

    2.2          Method of
Conversion.  This Note may be converted by the Holder in whole
or in part as described in Section 2.1(a) hereof
and the Subscription Agreement.  Upon partial conversion of this Note,
a new Note containing the same date and provisions of this Note shall, at the
request of the Holder, be issued by the Borrower to the Holder for the principal
balance of this Note and interest which shall not have been converted or
paid.

    

    2.3.         Maximum
Conversion.  The Holder shall not be entitled to convert on a
Conversion Date that amount of the Note in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number of shares
of Common Stock beneficially owned by the Holder and its affiliates on a
Conversion Date, (ii) any Common Stock issuable in connection with the
unconverted portion of the Note, and (iii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this provision is being made on a Conversion Date, which would result in
beneficial ownership by the Holder and its affiliates of more than 4.99% of the
outstanding shares of Common Stock of the Borrower on such Conversion
Date.  For the purposes of the provision to 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 conversions of 4.99%.  The Holder shall have the
authority to determine whether the restriction contained in this Section 2.3 will
limit any conversion hereunder and the extent such limitation applies and to
which convertible or exercisable instrument or part thereof such limitation
applies.  The Holder may waive the conversion limitation described in
this Section
2.3, in whole or in part, upon and effective after 61 days prior written
notice to the Borrower to increase such percentage to up to
9.99%.

    
      
         

      

      
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    ARTICLE
III

    

    OPTIONAL
REDEMPTION

    

    3.1.         Mandatory
Conversion.  Provided an Event of Default or an event which
with the passage of time or giving of notice could become an Event of Default
has not occurred, then, until the Maturity Date, the Borrower will have the
one-time option by written notice to the Holder (“Notice of Mandatory
Conversion”) of compelling the Holder to convert all or a portion of the
outstanding and unpaid principal of the Note into Common Stock at the Conversion
Price, as adjusted, then in affect (“Mandatory Conversion”). The
Notice of Mandatory Conversion, which notice must be given on the first business
day following twenty (20) consecutive trading days (“Lookback Period”) during which
the closing price for the Common Stock as reported by Bloomberg, LP for the
Principal Market shall be equal to or greater than $1.25, each such trading day
and during which Lookback Period, the aggregate daily trading volume as reported
by Bloomberg L.P. for the Principal Market is not less than $2,000,000. The date
the Notice of Mandatory Conversion is given is the “Mandatory Conversion Date.”
The Notice of Mandatory Conversion shall specify the aggregate principal amount
of the Note which is subject to Mandatory Conversion.  The Borrower
shall reduce the amount of Note principal subject to a Notice of Mandatory
Conversion by the amount of Note Principal and interest for which the Holder had
delivered a Notice of Conversion to the Borrower during the Lookback
Period.  Each Mandatory Conversion Date shall be a deemed Conversion
Date and the Borrower will be required to deliver the Common Stock issuable
pursuant to a Mandatory Conversion Notice in the same manner and time period as
described in this Note and in the Subscription Agreement.  A Notice of
Mandatory Conversion may be given only in connection with an amount of Common
Stock which would not cause the Holder to exceed the 4.99% (or if increased,
9.99%) beneficial ownership limitation set forth in Section 2.3 of this
Note.  Failure by the Borrower to deliver the Common Stock issuable
upon Mandatory Conversion on the Delivery Date will be a non-curable Event of
Default.

    

    3.2.         Fundamental
Transaction.  Upon the occurrence of a Fundamental Transaction,
then in addition to the Holder’s rights described in Section 2.1(c)(A), until
twenty (20) business days after the Borrower notifies the Holder of the
occurrence of the Fundamental Transaction, the Holder may elect to accelerate
the Maturity Date as of the date of the Fundamental Transaction and receive
payment for the then outstanding Principal Amount, and any other amount owed to
the Holder pursuant to the Transaction Documents.

    

    3.3.         Redemption.  This
Note may not be prepaid, converted, redeemed or called by the Borrower without
the consent of the Holder except as described in this Note.

    

    ARTICLE
IV

    

    EVENT
OF DEFAULT

    

    The
occurrence of any of the following events of default (“Event of Default”) shall, at
the option of the Holder hereof, make all sums of principal and interest then
remaining unpaid hereon and all other amounts payable hereunder immediately due
and payable, upon demand, without presentment or grace period, all of which
hereby are expressly waived, except as set forth below:

    

    4.1          Failure to Pay Principal or
Interest.  The Borrower fails to pay any installment of
principal, interest or other sum due under this Note when due.

    

    4.2          Breach of
Covenant.  The Borrower or any Subsidiary breaches any material
covenant or other term or condition of the Subscription Agreement, Transaction
Documents or this Note in any material respect and such breach, if subject to
cure, continues for a period of ten (10) days after written notice to the
Borrower from the Holder.

    
      
         

      

      
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    4.3          Breach of Representations
and Warranties.  Any material representation or warranty of the
Borrower made herein, in the Subscription Agreement, Transaction Documents, or
in any agreement, statement or certificate given in writing pursuant hereto or
in connection therewith shall be false or misleading in any material respect as
of the date made and the Closing Date.

    

    4.4          Liquidation.   Any
dissolution, liquidation or winding up of Borrower or a Subsidiary substantial
portion of their business.

     

    4.5          Cessation of
Operations.   Any cessation of operations by Borrower or a
Subsidiary, except for a Subsidiary identified on Schedule 5 (a) to the
Subscription Agreement as a ‘Non-Operating Subsidiary’.

     

    4.6          Maintenance of
Assets.   The failure by Borrower or any Subsidiary to
maintain any material intellectual property rights, personal, real property,
equipment, leases or other assets which are necessary to conduct its business
(whether now or in the future) and such breach is not cured with ten (10) days
after written notice to the Borrower from the Holder.

    

    4.7          Receiver or
Trustee.  The Borrower or any Subsidiary shall make an
assignment for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business; or such a receiver or trustee shall otherwise be
appointed.

    

    4.8          Judgments.  Any
money judgment, writ or similar final process shall be entered or made in a
non-appealable adjudication against Borrower or any Subsidiary or any of its
property or other assets for more than $100,000, unless stayed vacated or
satisfied within ten days.

    

    4.9          Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or
relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or
against the Borrower or any Subsidiary.

    

    4.10        Delisting.   Except
in connection with the Required Delisting, a delisting of the Common Stock from
any Principal Market; failure to comply with the requirements for continued
listing on a Principal Market for a period of fifteen (15) consecutive trading
days; or notification from a Principal Market that the Borrower is not in
compliance with the conditions for such continued listing on such Principal
Market.

    

    4.11        Non-Payment.   A
default by the Borrower or any Subsidiary under any one or more obligations in
an aggregate monetary amount in excess of $100,000 for more than twenty (20)
days after the due date, unless the Borrower or such Subsidiary is contesting
the validity of such obligation in good faith and has segregated cash funds
equal to not less than one-half of the contested amount.

    

    4.12        Stop
Trade.  An SEC or judicial stop trade order or Principal Market
trading suspension that lasts for ten (10) or more consecutive trading
days.

    

    4.13        Failure to Deliver Common
Stock or Replacement Note.  Borrower’s failures to timely
deliver Common Stock to the Holder pursuant to and in the form required by this
Note, Sections 7 and 11 of the Subscription Agreement, and the Warrant or, if
required, a replacement Note following a partial conversion.

    

    4.14        Reservation
Default.   Failure by the Borrower to have reserved for
issuance upon conversion of the Note or upon exercise of the Warrants issued in
connection with the Subscription Agreement, the number of shares of Common Stock
as required in the Subscription Agreement, this Note and the
Warrants.

    
      
         

      

      
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    4.15        Financial Statement
Restatement.  The restatement after the date hereof of any
financial statements filed by the Borrower with the Securities and Exchange
Commission for any date or period from two years prior to the Issue Date of this
Note and until this Note is no longer outstanding, if the result of such
restatement would, by comparison to the unrestated financial statements, have
constituted a Material Adverse Effect.

    

    4.16        Event Described in
Subscription Agreement.  The occurrence of an Event of Default
as described in the Subscription Agreement or any other Transaction Document
that, if susceptible to cure, is not cured during any designated cure period or
longer period described in this Article IV.

    

    4.17        Executive Officers Breach of
Duties.  Any of Borrower’s named executive officers or
directors is convicted of a violation of securities laws, or a settlement in
excess of $250,000 is reached by any such officer or director relating to a
violation of securities laws, breach of fiduciary duties or
self-dealing.

    

    4.18        Notification
Failure.   A failure by Borrower to notify Holder of any
material event of which Borrower is obligated to notify Holder pursuant to the
terms of this Note or any other Transaction Document.

    

    4.19        Cross
Default.  A default by the Borrower of a material term,
covenant, warranty or undertaking of any other agreement to which the Borrower
and Holder are parties, or the occurrence of an event of default under any such
other agreement to which Borrower and Holder are parties which is not cured
after any required notice and/or cure period.

    

    4.20        Other Note
Default.   The occurrence of an Event of Default under any
Other Note.

    

    4.21        Listing
Default.  The occurrence of a Listing Default as defined in
Section 9(c) of the Subscription Agreement.

    

    ARTICLE
V

    

    SECURITY
INTEREST

    

    5.         
  Security
Interest/Waiver of Automatic Stay.   This Note is secured
by a security interest granted to the Holder pursuant to a Security Agreement,
as delivered by Borrower to Holder.  The Borrower acknowledges and
agrees that should a proceeding under any bankruptcy or insolvency law be
commenced by or against the Borrower, or if any of the Collateral (as defined in
the Security Agreement) should become the subject of any bankruptcy or
insolvency proceeding, then the Holder should be entitled to, among other relief
to which the Holder may be entitled under the Transaction Documents and any
other agreement to which the Borrower and Holder are parties (collectively,
“Loan Documents”) and/or
applicable law, an order from the court granting immediate relief from the
automatic stay pursuant to 11 U.S.C. Section 362 to permit the Holder to
exercise all of its rights and remedies pursuant to the Loan Documents and/or
applicable law. THE BORROWER EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY
IMPOSED BY 11 U.S.C. SECTION 362.  FURTHERMORE, THE BORROWER EXPRESSLY
ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION
OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION,
11 U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN
ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES
UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW.  The Borrower hereby
consents to any motion for relief from stay that may be filed by the Holder in
any bankruptcy or insolvency proceeding initiated by or against the Borrower
and, further, agrees not to file any opposition to any motion for relief from
stay filed by the Holder.  The Borrower represents, acknowledges and
agrees that this provision is a specific and material aspect of the Loan
Documents, and that the Holder would not agree to the terms of the Loan
Documents if this waiver were not a part of this Note. The Borrower further
represents, acknowledges and agrees that this waiver is knowingly, intelligently
and voluntarily made, that neither the Holder nor any person acting on behalf of
the Holder has made any representations to induce this waiver, that the Borrower
has been represented (or has had the opportunity to he represented) in the
signing of this Note and the Loan Documents and in the making of this waiver by
independent legal counsel selected by the Borrower and that the Borrower has
discussed this waiver with counsel.

    
      
         

      

      
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    ARTICLE
VI

    

    MISCELLANEOUS

    

    6.1          Failure or Indulgence Not
Waiver.  No failure or delay on the part of the Holder hereof
in the exercise of any power, right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other
right, power or privilege.  All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

     

    6.2          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 first 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: (i) if to the Borrower to: Glen Rose
Petroleum Corporation, 22762 Westheimer Parkway, Suite 515, Katy, TX 77450,
Attn: Andrew Taylor-Kimmins, President, facsimile: (832) 437-4037 with a copy by
fax to: Walter Reissman, Weisshorn Management, 400 Rella Boulevard, Montebello,
NY 10901, facsimile(845) 368-0071 and John R. Fahy, Whitaker, Chalk, Swindle
& Sawyer, LLP, 301 Commerce St., Suite 3500, Fort Worth, TX 76102, facsimile
(817) 878-0501, and (ii) if to the Holder, to the name, address and facsimile
number set forth on the front page of this Note, with a copy by fax only to
Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York
10176, facsimile: (212) 697-3575.

     

    6.3          Amendment
Provision.  The term “Note” and all reference thereto, as used
throughout this instrument, shall mean this instrument as originally executed,
or if later amended or supplemented, then as so amended or
supplemented.

     

    6.4          Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and
shall inure to the benefit of the Holder and its successors and
assigns.  The Borrower may not assign its obligations under this
Note.

     

    6.5          Cost of
Collection.  If default is made in the payment of this Note,
Borrower shall pay the Holder hereof reasonable costs of collection, including
reasonable attorneys’ fees.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    6.6          Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflicts of
laws principles that would result in the application of the substantive laws of
another jurisdiction.  Any action brought by either party against the
other concerning the transactions contemplated by this Agreement must be brought
only in the civil or state courts of New York or in the federal courts located
in the State and county of New York.  Both parties and the individual
signing this Agreement on behalf of the Borrower agree to submit to the
jurisdiction of such courts.  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 Note 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 with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or unenforceability of any other provision of this Note.
Nothing contained herein shall be deemed or operate to preclude the Holder from
bringing suit or taking other legal action against the Borrower in any other
jurisdiction to collect on the Borrower’s obligations to Holder, to realize on
any collateral or any other security for such obligations, or to enforce a
judgment or other decision in favor of the Holder.  This Note shall be deemed an
unconditional obligation of Borrower for the payment of money and, without
limitation to any other remedies of Holder, may be enforced against Borrower by
summary proceeding pursuant to New York Civil Procedure Law and Rules Section
3213 or any similar rule or statute in the jurisdiction where enforcement is
sought.  For purposes of such rule or statute, any other document or
agreement to which Holder and Borrower are parties or which Borrower delivered
to Holder, which may be convenient or necessary to determine Holder’s rights
hereunder or Borrower’s obligations to Holder are deemed a part of this Note,
whether or not such other document or agreement was delivered together herewith
or was executed apart from this Note.

     

    6.7          Maximum
Payments.  Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum rate permitted by applicable law.  In the event
that the rate of interest required to be paid or other charges hereunder exceed
the maximum rate permitted by applicable law, any payments in excess of such
maximum rate shall be credited against amounts owed by the Borrower to the
Holder and thus refunded to the Borrower.

     

    6.8          Non-Business
Days.   Whenever any payment or any action to be made
shall be due on a Saturday, Sunday or a public holiday under the laws of the
State of New York, such payment may be due or action shall be required on the
next succeeding business day and, for such payment, such next succeeding day
shall be included in the calculation of the amount of accrued interest payable
on such date.

     

    6.9          Shareholder
Status.  The Holder shall not have rights as a shareholder of
the Borrower with respect to unconverted portions of this
Note.  However, the Holder will have the rights of a shareholder of
the Borrower with respect to the Shares of Common Stock to be received after
delivery by the Holder of a Conversion Notice to the
Borrower.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by an authorized officer as of the
____ day of February, 2010.

    

    
      	 
      	
              GLEN
      ROSE PETROLEUM CORPORATION

            
	 
      	 
      
	 
      	
              By:

            	 
      	 
      
	 
      	 
      	
              Name:
      Andrew Taylor-Kimmins

            
	 
      	 
      	
              Title:
      President

            
	 
      	 
      	 
      
	
              WITNESS:

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    EXHIBIT A – FORM OF
ALLONGE

    

    ALLONGE NO. [___] TO SECURED
CONVERTIBLE PROMISSORY

    NOTE ISSUED FEBRUARY [___]
2010

    

    This
Allonge No. ___ to Secured Convertible Promissory Note (“Allonge”) is made this
___ day of ________________, by Glen Rose Petroleum Corporation, a Delaware
corporation (“Borrower”) to ________________________
(“Holder”).  Reference is hereby made to that certain Secured
Convertible Promissory Note issued by Borrower to Holder dated February ___,
2010 (“Note”).  Except as amended hereby, the terms of the Note remain
as originally stated.

    

    The
Principal Amount as stated on the face of the Note shall be increased by
$________ as of [the quarterly interest due date].  Interest on the
increased portion of the Principal Amount shall accrue from [the quarterly
interest due date].  The sum represents interest accrued on the
outstanding Principal Amount of the Note at the annual rate of 12% from
____________ through ______________.

    

    The
amendment to the Principal Amount due and owing on the Note described herein
notwithstanding, Lender does not waive interest that may have accrued at a
default rate of interest and liquidated damages, if any, that may have accrued
on the Note through the date of this Allonge, which default interest and
liquidated damages, if any, remain outstanding and payable.

    

    IN
WITNESS WHEREOF, this Allonge is executed as of the date written
above.

    

    GLEN ROSE
PETROLEUM CORPORATION

    

    
      
        	
                By:

              	 
      	 
      
	 
      	
                Name:

              
	 
      	
                Title:

              

      

    

    
      
         

      

      
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    EXHIBIT B - NOTICE OF
CONVERSION

    

    (To be
executed by the Registered Holder in order to convert the Note)

    

    The
undersigned hereby elects to convert $_________ of the principal and $_________
of the interest due on the Note issued by GLEN ROSE PETROLEUM CORPORATION on
February ___, 2010 into Shares of Common Stock of GLEN ROSE PETROLEUM
CORPORATION (the “Borrower”) according to the conditions set forth in such Note,
as of the date written below.

    

    
      
        	
                Date of Conversion:

              	 
      

      

    

    

    
      
        	
                Conversion Price:

              	 
      

      

    

    

    Number of Shares of Common Stock Beneficially Owned on
the Conversion Date: Less than 5% of the
outstanding Common Stock of GLEN ROSE PETROLEUM CORPORATION

    

    
      
        	
                Shares To Be Delivered:

              	 
      

      

    

    

    
      
        	
                Signature:

              	 
      

      

    

    

    
      
        	
                Print Name:

              	 
      

      

    

    

    
      
        
          	
                  Address:

                	 
      
	 
      	 
      
	 
      	 
      

        

      

    

     

    
      
         

      

      
        12SECURITY
AGREEMENT

    

    1.           Identification.

    

    This
Security Agreement (the “Agreement”), dated as
of February ___, 2010, is entered
into by and among Glen Rose Petroleum Corporation, a Delaware corporation
(“Parent”), and the
entities identified on Schedule
1 hereto (each a
“Guarantor” and together
with Parent, each a “Debtor” and collectively the
“Debtors”), the
Subscribers identified on Schedule 2 hereto (the “Subscribers”), who are parties
to the Subscription Agreement dated as of February ___, 2010  (the “Subscription Agreement”), by and
among Parent, and such Subscribers, and Iroquois Capital Opportunity Fund, LP
(“Collateral
Agent”).

    

    2.           Recitals.

    

    2.1           At
or about the date hereof, each of the Subscribers is making a loan (the
“Loan”) to
Parent.  Guarantor is a direct or indirect Subsidiary (as defined in
Section 6.12 hereof) of Parent.  It is beneficial to each Debtor that
the Loan is made.  Guarantor has delivered or will deliver a
“Guaranty” of Parent’s obligations to Subscribers.

     

    2.2           The
Loan will be evidenced by one or more promissory notes (each a “Note”) issued by
Parent on or about the date of this Agreement pursuant to the
Subscription Agreement.  The Note was or will be executed by
Parent as “Borrower” or
“Debtor” for the benefit
of each Subscriber as the “Holder” or “Subscriber”
thereof.

    

    2.3           In
consideration of the Loans made and to be made by Subscribers to Parent and for
other good and valuable consideration, and as security for the performance by
Parent of its obligations under the Note, by Guarantor of its obligations under
the Guaranty, and as security for the repayment of the Loan and all other sums
due from Debtor to Subscribers arising under the Transaction Documents (as
defined in the Subscription Agreement) and any other agreement between or among
them (collectively, the “Obligations”), each Debtor,
for good and valuable consideration, receipt of which is acknowledged, has
agreed to grant to the Subscribers and to the Collateral Agent on behalf of the
Subscribers a security interest in the Collateral (as such term is hereinafter
defined), on the terms and conditions hereinafter set forth.

    

    2.4           The
following defined terms which are defined in the Uniform Commercial Code in
effect in the State of New York on the date hereof are used herein as so
defined:  Accounts, Chattel Paper, Documents, Equipment, General
Intangibles, Instruments, Inventory and Proceeds.  Other capitalized
terms employed herein shall have the meanings attributed to them in the
Subscription Agreement.

    

    3.           Grant of General
Security
Interest in Collateral.

    

    3.1           As
security for the Obligations of Debtors, each Debtor hereby grants each of the
Subscribers, a security interest in the Collateral.

    

    3.2           “Collateral” shall mean all of
the following property of Debtors:

    

     (A)         All
now owned and hereafter acquired right, title and interest of Debtors in, to and
in respect of all Accounts, Goods, real or personal property, all present and
future books and records relating to the foregoing and all products and Proceeds
of the foregoing, and as set forth below:

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    (i)           Including
but not limited to the items described on Schedule 9(l) to the Subscription
Agreement, all now owned and hereafter acquired right, title and interest of
Debtors in, to and in respect of all: Accounts, interests in goods represented
by Accounts, returned, reclaimed or repossessed goods with respect thereto and
rights as an unpaid vendor; contract rights; Chattel Paper; investment property;
General Intangibles (including but not limited to, tax and duty claims and
refunds, registered and unregistered patents, trademarks, service marks,
certificates, copyrights, trade names, applications for the foregoing, trade
secrets, goodwill, processes, drawings, blueprints, customer lists, licenses,
whether as licensor or licensee, choses in action and other claims, and existing
and future leasehold interests and claims in and to equipment, real estate and
fixtures); Documents; Instruments; letters of credit, bankers’ acceptances or
guaranties; cash moneys, deposits including but not limited to the deposit
accounts identified on Schedule
3; securities, bank accounts, deposit accounts, credits and other
property now or hereafter owned or held in any capacity by Debtors, as well as
agreements or property securing or relating to any of the items referred to
above;

     

    (ii)          Goods:  All
now owned and hereafter acquired right, title and interest of Debtors in, to and
in respect of goods, including, but not limited to:

    

    (a)           All
Inventory, wherever located, whether now owned or hereafter acquired, of
whatever kind, nature or description, including all raw materials,
work-in-process, finished goods, and materials to be used or consumed in
Debtors’ business; finished goods, timber cut or to be cut, oil, gas,
hydrocarbons, and minerals extracted or to be extracted, and all names or marks
affixed to or to be affixed thereto for purposes of selling same by the seller,
manufacturer, lessor or licensor thereof and all Inventory which may be returned
to any Debtor by its customers or repossessed by any Debtor and all of Debtors’
right, title and interest in and to the foregoing (including all of a Debtor’s
rights as a seller of goods);

    

    (b)           All
Equipment and fixtures, wherever located, whether now owned or hereafter
acquired, including, without limitation, all machinery, furniture and fixtures,
and any and all additions, substitutions, replacements (including spare parts),
and accessions thereof and thereto (including, but not limited to Debtors’
rights to acquire any of the foregoing, whether by exercise of a purchase option
or otherwise);

    

    (iii)         Property:  All
now owned and hereafter acquired right, title and interests of Debtors in, to
and in respect of any other personal property in or upon which a Debtor has or
may hereafter have a security interest, lien or right of setoff;

     

    (iv)         Books and
Records:  All present and future books and records relating to
any of the above including, without limitation, all computer programs, printed
output and computer readable data in the possession or control of the Debtors,
any computer service bureau or other third party; and

     

    (v)          Products and
Proceeds:  All products and Proceeds of the foregoing in
whatever form and wherever located, including, without limitation, all insurance
proceeds and all claims against third parties for loss or destruction of or
damage to any of the foregoing.

    

    (B)         All
now owned and hereafter acquired right, title and interest of Debtors in, to and
in respect of the following:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (i)           the
shares of stock of each Guarantor, which the Debtor represents, equals not less
than the equity ownership and right to receive equity of Guarantor as set forth
on Schedule 1 hereto, the certificates
representing such shares together with an executed stock power, and other
rights, contractual or otherwise, in respect thereof and all dividends,
distributions, cash, instruments, investment property and other property from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such shares;

     

    (ii)           all
additional shares of stock, partnership interests, member interests or other
equity interests from time to time acquired by Debtor, in any Subsidiary that is
not a Subsidiary of the Debtor on the date hereof (“Future Subsidiaries”), the
certificates representing such additional shares, and other rights, contractual
or otherwise, in respect thereof and all dividends, distributions, cash,
instruments, investment property and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or
all of such additional shares, interests or equity; and

    

    (iii)          all
security entitlements of Debtor in, and all Proceeds of any and all of the
foregoing in each case, whether now owned or hereafter acquired by Debtor and
howsoever its interest therein may arise or appear (whether by ownership,
security interest, lien, claim or otherwise).

    

    3.3           The
Subscriber and Collateral Agent are hereby specifically authorized, after the
Maturity Date (defined in the Note) accelerated or otherwise, and after the
occurrence of an Event of Default (as defined herein) and the expiration of any
applicable cure period, to transfer any Collateral into the name of the
Collateral Agent and to take any and all action deemed advisable to the
Subscriber to remove any transfer restrictions affecting the
Collateral.

    

    4.           Perfection of Security
Interest.

    

    4.1           Each
Debtor shall prepare, execute and deliver to the Subscribers UCC-1 Financing
Statements in form and substance acceptable to Subscribers.  The
Subscribers are instructed to prepare and file at each Debtor’s cost and
expense, financing statements in such United States and foreign jurisdictions
deemed advisable to Subscribers, including but not limited to the States of
Delaware, New York and Texas.

    

    4.2           Upon
the execution of this Agreement, Parent shall deliver to Collateral Agent stock
certificates representing all of the shares of outstanding capital stock of
Guarantor (the “Securities”).  All
such certificates shall be held by or on behalf of Subscribers pursuant hereto
and shall be delivered in suitable form for transfer by delivery, and shall be
accompanied by duly executed instruments of transfer or assignment or undated
stock powers executed in blank, all in form and substance satisfactory to
Subscribers.

    

    4.3           All
other certificates and instruments constituting Collateral from time to time
required to be pledged to Subscribers pursuant to the terms hereof (the
“Additional Collateral”) shall be delivered to Collateral Agent promptly upon
receipt thereof by or on behalf of Debtors.  All such certificates and
instruments shall be held by or on behalf of Subscribers pursuant hereto and
shall be delivered in suitable form for transfer by delivery, or shall be
accompanied by duly executed instruments of transfer or assignment or undated
stock powers executed in blank, all in form and substance satisfactory to
Subscribers.  If any Collateral consists of uncertificated securities,
unless the immediately following sentence is applicable thereto, Debtors shall
cause Subscribers (or its custodian, nominee or other designee) to become the
registered holder thereof, or cause each issuer of such securities to agree that
it will comply with instructions originated by Subscribers with respect to such
securities without further consent by Debtors.  If any Collateral
consists of security entitlements, Debtors shall transfer such security
entitlements to Subscribers (or its custodian, nominee or other designee) or
cause the applicable securities intermediary to agree that it will comply with
entitlement orders by Subscribers without further consent by
Debtors.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    4.4           Within
five (5) business days after the receipt by a Debtor of any Additional
Collateral, a Pledge Amendment, duly executed by such Debtor, in substantially
the form of Exhibit A
hereto (a “Pledge
Amendment”), shall be delivered to Subscribers in respect of the
Additional Collateral to be pledged pursuant to this Agreement. Each Debtor
hereby authorizes Subscribers to attach each Pledge Amendment to this Agreement
and agrees that all certificates or instruments listed on any Pledge Amendment
delivered to Subscribers shall for all purposes hereunder constitute
Collateral.

    

    4.5           If
Debtor shall receive, by virtue of Debtor being or having been an owner of any
Collateral, any (i) stock certificate (including, without limitation, any
certificate representing a stock dividend or distribution in connection with any
increase or reduction of capital, reclassification, merger, consolidation, sale
of assets, combination of shares, stock split, spin-off or split-off),
promissory note or other instrument, (ii) option or right, whether as an
addition to, substitution for, or in exchange for, any Collateral, or otherwise,
(iii) dividends payable in cash (except such dividends permitted to be retained
by Debtor pursuant to Section 5.2 hereof) or in securities or other property or
(iv) dividends or other distributions in connection with a partial or total
liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in surplus, Debtor shall receive such stock certificate,
promissory note, instrument, option, right, payment or distribution in trust for
the benefit of Subscribers, shall segregate it from Debtor’s other property and
shall deliver it forthwith to Subscribers, in the exact form received, with any
necessary endorsement and/or appropriate stock powers duly executed in blank, to
be held by Subscribers as Collateral and as further collateral security for the
Obligations.

    

    5.           Distribution.

    

    5.1           So
long as an Event of Default does not exist, Debtors shall be entitled to
exercise all voting power pertaining to any of the Collateral, provided such
exercise is not contrary to the interests of the Subscribers and does
not impair the Collateral.

    

    5.2.          At
any time an Event of Default exists or has occurred and is continuing, all
rights of Debtors, upon notice given by Subscribers, to exercise the voting
power and receive payments, which it would otherwise be entitled to pursuant to
Section 5.1, shall cease and all such rights shall thereupon become vested in
Subscribers, which shall thereupon have the sole right to exercise such voting
power and receive such payments.

    

    5.3           All
dividends, distributions, interest and other payments which are received by
Debtors contrary to the provisions of Section 5.2 shall be received in trust for
the benefit of Subscribers as security and Collateral for payment of the
Obligations shall be segregated from other funds of Debtors, and shall be
forthwith paid over to Subscribers as Collateral in the exact form received
with any necessary endorsement and/or appropriate stock powers duly executed in
blank, to be held by Subscribers as Collateral and as further collateral
security for the Obligations.

    

    6.           Further Action By
Debtors;
Covenants and Warranties.

     

    6.1           Subscribers at
all times shall have a perfected security interest in the
Collateral.  Each Debtor represents that other than the security
interests described on Schedule
6.1, it has and will continue to have full title to the Collateral free
from any liens, leases, encumbrances, judgments or other claims, except for
Permitted Liens as defined in the Subscription Agreement.  The
Subscribers’ security interest in the Collateral constitutes and will
continue to constitute a first, prior and indefeasible security interest in
favor of Subscribers, subject only to the security interests described on Schedule 6.1.  Each
Debtor will do all acts and things, and will execute and file all instruments
(including, but not limited to, security agreements, financing statements,
continuation statements, etc.) reasonably requested by Subscribers to establish,
maintain and continue the perfected security interest of Subscribers in the
perfected Collateral, and will promptly on demand, pay all costs and expenses of
filing and recording, including the costs of any searches reasonably deemed
necessary by Subscribers from time to time to establish and determine the
validity and the continuing priority of the security interest of Subscribers,
and also pay all other claims and charges that, in the opinion of
Subscribers are reasonably likely to materially prejudice, imperil or
otherwise affect the Collateral or Subscribers’ security interests
therein.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    6.2           Except
in connection with sales of Collateral, in the ordinary course of business, for
fair value and in cash, and except for Collateral which is substituted by assets
of identical or greater value (subject to the consent of the Subscribers) or
which is not material to the Debtor’s business, each Debtor will not sell,
transfer, assign or pledge those items of Collateral (or allow any such items to
be sold, transferred, assigned or pledged), without the prior written consent of
Subscribers other than a transfer of the Collateral to a wholly-owned
United States formed and located subsidiary or to another Debtor on prior notice
to Subscribers, and provided the Collateral remains subject to the security
interest herein described.  Although Proceeds of Collateral are
covered by this Agreement, this shall not be construed to mean that
Subscribers consent to any sale of the Collateral, except as provided
herein.  Sales of Collateral in the ordinary course of business as
described above shall be free of the security interest of Subscribers and
Subscribers shall promptly execute such documents (including without limitation
releases and termination statements) as may be required by Debtors to evidence
or effectuate the same.

    

    6.3           Each
Debtor will, at all reasonable times during regular business hours and upon
reasonable notice, allow Subscribers or their representatives free and
complete access to the Collateral and all of such Debtor’s records that in any
way relate to the Collateral, for such inspection and examination as Subscribers
reasonably deem necessary.

    

    6.4           Each
Debtor, at its sole cost and expense, will protect and defend this Security
Agreement, all of the rights of Subscribers hereunder, and the Collateral
against the claims and demands of all other persons other than the
Subscribers.

    

    6.5           Debtors
will promptly notify Subscribers of any levy, distraint or other seizure by
legal process or otherwise of any part of the Collateral, and of any threatened
or filed claims or proceedings that are reasonably likely to affect or impair
any of the rights of Subscribers under this Security Agreement in any
material respect.

    

    6.6           Each
Debtor, at its own expense, will obtain and maintain in force insurance policies
covering losses or damage to those items of Collateral which constitute physical
personal property, which insurance shall be of the types customarily insured
against by companies in the same or similar business, similarly situated, in
such amounts (with such deductible amounts) as is customary for such companies
under the same or similar circumstances, similarly situated.  Debtors
shall make the Subscribers loss payee thereon to the extent of its interest
in the Collateral. Subscribers are hereby irrevocably (until the
Obligations are indefeasibly paid in full) appointed each Debtor’s
attorney-in-fact to endorse any check or draft that may be payable to such
Debtor so that Subscribers may collect the proceeds payable for any loss
under such insurance.  The proceeds of such insurance, less any costs
and expenses incurred or paid by Subscribers in the collection thereof,
shall be applied either toward the cost of the repair or replacement of the
items damaged or destroyed, or on account of any sums secured hereby, whether or
not then due or payable.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    6.7           In
order to protect the Collateral and Subscribers’ interest therein,
Subscribers may, at Subscribers’ option, and without any obligation to
do so, pay, perform and discharge any and all amounts, costs, expenses and
liabilities herein agreed to be paid or performed by Debtor upon Debtor’s
failure to do so.  All amounts expended by Subscribers in so
doing shall become part of the Obligations secured hereby, and shall be
immediately due and payable by Debtor to Subscribers upon demand and shall
bear interest at the lesser of 15% per annum or the highest legal amount allowed
from the dates of such expenditures until paid.

    

    6.8           Upon
the request of Subscribers, Debtors will furnish to Subscribers within five
(5) business days thereafter, or to any proposed assignee of this Security
Agreement, a written statement in form reasonably satisfactory to Subscribers,
duly acknowledged, certifying the amount of the principal and interest and any
other sum then owing under the Obligations, whether to its knowledge any claims,
offsets or defenses exist against the Obligations or against this Security
Agreement, or any of the terms and provisions of any other agreement of Debtors
securing the Obligations.  In connection with any assignment by
Subscribers of this Security Agreement, each Debtor hereby agrees to cause
the insurance policies required hereby to be carried by such Debtor, if any, to
be endorsed in form satisfactory to Subscribers or to such assignee, with
loss payable clauses in favor of such assignee, and to cause such endorsements
to be delivered to Subscribers within ten (10) calendar days after request
therefor by Subscribers.

    

    6.9           Each
Debtor will, at its own expense, make, execute, endorse, acknowledge, file
and/or deliver to the Subscribers from time to time such vouchers,
invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, reports and
other reasonable assurances or instruments and take further steps relating to
the Collateral and other property or rights covered by the security interest
hereby granted, as the Subscribers may reasonably require to perfect its
security interest hereunder.

    

    6.10         Debtors
represent and warrant that they are the true and lawful exclusive owners of the
Collateral, free and clear of any liens, encumbrances and claims other than
those listed on Schedule 6.1.

    

    6.11         Each
Debtor hereby agrees not to divest itself of any right under the Collateral
except as permitted herein absent prior written approval of the Subscribers,
except to a subsidiary organized and located in the United States on prior
notice to Subscribers provided the Collateral remains subject to the security
interest herein described.

    

    6.12         Each
Debtor shall cause each Subsidiary of such Debtor in existence on the date
hereof and each future Subsidiary to execute and deliver to
Subscribers promptly and in any event within ten (10) days after the
formation, acquisition or change in status thereof (A) a guaranty guaranteeing
the Obligations and (B) if requested by Subscribers, a security and pledge
agreement substantially in the form of this Agreement together with (x)
certificates evidencing all of the capital stock of each Subsidiary of and any
entity owned by such Subsidiary, (y) undated stock powers executed in blank with
signatures guaranteed, and (z) such opinion of counsel and such approving
certificate of such Subsidiary as Subscribers may reasonably request in respect
of complying with any legend on any such certificate or any other matter
relating to such shares and (C) such other agreements, instruments, approvals,
legal opinions or other documents reasonably requested by Subscribers in order
to create, perfect, establish the first priority of or otherwise protect any
lien purported to be covered by any such pledge and security agreement or
otherwise to effect the intent that all property and assets of such Subsidiary
shall become Collateral for the Obligations.  For purposes of this
Agreement, “Subsidiary” means,
with respect to any entity at any date, any corporation, limited or general
partnership, limited liability company, trust, estate, association, joint
venture or other business entity) of which more than 30% of (A) the
outstanding capital stock having (in the absence of contingencies) ordinary
voting power to elect a majority of the board of directors or other managing
body of such entity, (B) in the case of a partnership or limited liability
company, the interest in the capital or profits of such partnership or limited
liability company or (C) in the case of a trust, estate, association, joint
venture or other entity, the beneficial interest in such trust, estate,
association or other entity business is, at the time of determination, owned or
controlled directly or indirectly through one or more intermediaries, by such
entity.  Schedule 1 annexed hereto contains a list of
all Subsidiaries of the Debtors as of the date of this
Agreement.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    6.13         Debtor
will notify Subscribers within ten days of the occurrence of any change of
Debtor’s name, domicile, address or jurisdiction of
incorporation.  The timely giving of this notice is a material
obligation of Debtor.

    

    7.           Power of
Attorney.

    

    At any
time an Event of Default has occurred, and only after the applicable cure period
as set forth in this Agreement and the other Transaction Documents, and is
continuing, each Debtor hereby irrevocably constitutes and appoints Subscribers
as the true and lawful attorney of such Debtor, with full power of substitution,
in the place and stead of such Debtor and in the name of such Debtor or
otherwise, at any time or times, in the discretion of the Subscribers, to take
any action and to execute any instrument or document which the Subscribers may
deem necessary or advisable to protect Subscribers’ rights in the Collateral as
set forth in this Agreement.  This power of attorney is coupled with
an interest and is irrevocable until the Obligations are indefeasibly
satisfied.

    

    8.           Performance By The
Subscribers.

    

    If a
Debtor fails to perform any material covenant, agreement, duty or obligation of
such Debtor under this Agreement, Subscribers may, after any applicable cure
period and notice required hereunder, at any time or times in its discretion,
take action to effect performance of such obligation.  All reasonable
expenses of the Subscribers incurred in connection with the foregoing
authorization shall be payable by Debtors as provided in Paragraph 12.1
hereof.  No discretionary right, remedy or power granted to the
Subscribers under any part of this Agreement shall be deemed to impose any
obligation whatsoever on the Subscribers with respect thereto, such rights,
remedies and powers being solely for the protection of the
Subscribers.

    

    9.           Event of
Default.

    

    An event
of default (“Event of
Default”) shall be deemed to have occurred hereunder upon the occurrence
of any event of default as defined and described in this Agreement, in the Note,
the Subscription Agreement, Transaction Documents (as defined in the
Subscription Agreement), and any other agreement to which one or more Debtors
and Subscribers are parties.   Upon and after any Event of
Default, after the applicable cure period, if any, any or all of the Obligations
shall become immediately due and payable at the option of the Subscribers, and
the Subscribers may dispose of Collateral as provided herein.  A
default by Debtor of any of its material obligations pursuant to this Agreement
and any of the Transaction Documents shall be an Event of Default hereunder and
an “Event of Default” as defined in the Note, and Subscription
Agreement.

     

    10.         Disposition of
Collateral.

    

    Upon and
after any Event of Default which is then continuing,

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    10.1         The
Subscribers may exercise its rights with respect to each and every component of
the Collateral, without regard to the existence of any other security or source
of payment for, in order to satisfy the Obligations.  In addition to
other rights and remedies provided for herein or otherwise available to it, the
Subscribers shall have all of the rights and remedies of a secured party under
the Uniform Commercial Code then in effect in the State of New
York.

    

    10.2         If
any notice to Debtors of the sale or other disposition of Collateral is required
by then applicable law, five (5) business days prior written notice (which
Debtors agree is reasonable notice within the meaning of Section 9.612(a) of the
Uniform Commercial Code) shall be given to Debtors of the time and place of any
sale of Collateral which Debtors hereby agree may be by private
sale.  The rights granted in this Section are in addition to any and
all rights available to Subscribers under the Uniform Commercial
Code.

    

    10.3         The
Subscribers is authorized, at any such sale, if the Subscribers deems it
advisable to do so, in order to comply with any applicable securities laws, to
restrict the prospective bidders or purchasers to persons who will represent and
agree, among other things, that they are purchasing the Collateral for their own
account for investment, and not with a view to the distribution or resale
thereof, or otherwise to restrict such sale in such other manner as the
Subscribers deem advisable to ensure such compliance.  Sales made
subject to such restrictions shall be deemed to have been made in a commercially
reasonable manner.

    

    10.4         All
proceeds received by the Subscribers in respect of any sale, collection or other
enforcement or disposition of Collateral, shall be applied (after deduction of
any amounts payable to the Subscribers pursuant to Paragraph 12.1 hereof)
against the Obligations.   Upon payment in full of all
Obligations, Debtors shall be entitled to the return of all Collateral,
including cash, which has not been used or applied toward the payment of
Obligations or used or applied to any and all costs or expenses of the
Subscribers incurred in connection with the liquidation of the Collateral
(unless another person is legally entitled thereto).  Any assignment
of Collateral by the Subscribers to Debtors shall be without representation or
warranty of any nature whatsoever and wholly without recourse.  To the
extent allowed by law, Subscribers may purchase the Collateral and pay for such
purchase by offsetting the purchase price with sums owed to Subscribers by
Debtors arising under the Obligations or any other source.

    

    10.5         Without
limiting, and in addition to, any other rights, options and remedies
Subscribers have under the Transaction Documents, the UCC, at law or in
equity, or otherwise, upon the occurrence and continuation of an Event of
Default, Subscribers shall have the right to apply for and have a receiver
appointed by a court of competent jurisdiction.  Debtors expressly
agree that such a receiver will be able to manage, protect and preserve the
Collateral and continue the operation of the business of Debtors to the extent
necessary to collect all revenues and profits thereof and to apply the same to
the payment of all expenses and other charges of such receivership, including
the compensation of the receiver, until a sale or other disposition of such
Collateral shall be finally made and consummated.  Debtors waive any
right to require a bond to be posted by or on behalf of any such
receiver.

    

    10.6         Provided
an Event of Default or an event, which with the passage of time or the giving of
notice could become an Event of Default is not pending, then from and after the
date a Lender has exercised its conversion rights with respect to not less than
one-half of the initial principal of such Lender’s Note and the Company has
complied with its obligations with respect to all such conversions, then such
Lender’s security interest granted pursuant to this Agreement shall be
automatically released.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    11.          Waiver of Automatic
Stay.   Debtor acknowledges and agrees that should a
proceeding under any bankruptcy or insolvency law be commenced by or against
Debtor, or if any of the Collateral should become the subject of any bankruptcy
or insolvency proceeding, then the Subscribers should be entitled to, among
other relief to which the Subscribers may be entitled under the Note,
Subscription Agreement, Transaction Documents, and any other agreement to which
the Debtor and Subscribers are parties, (collectively “Loan Documents”) and/or
applicable law, an order from the court granting immediate relief from the
automatic stay pursuant to 11 U.S.C. Section 362 to permit the Subscribers to
exercise all of its rights and remedies pursuant to the Loan Documents and/or
applicable law.  DEBTOR EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC
STAY IMPOSED BY 11 U.S.C. SECTION 362.  FURTHERMORE, DEBTOR EXPRESSLY
ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION
OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION,
11 U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN
ANY WAY THE ABILITY OF THE SUBSCRIBERS TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES
UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW.   Debtor
hereby consents to any motion for relief from stay which may be filed by the
Subscribers in any bankruptcy or insolvency proceeding initiated by or against
Debtor, and further agrees not to file any opposition to any motion for relief
from stay filed by the Subscribers.  Debtor represents, acknowledges
and agrees that this provision is a specific and material aspect of this
Agreement, and that the Subscribers would not agree to the terms of this
Agreement if this waiver were not a part of this Agreement.  Debtor
further represents, acknowledges and agrees that this waiver is knowingly,
intelligently and voluntarily made, that neither the Subscribers nor any person
acting on behalf of the Subscribers has made any representations to induce this
waiver, that Debtor has been represented (or has had the opportunity to be
represented) in the signing of this Agreement and in the making of this waiver
by independent legal counsel selected by Debtor and that Debtor has had the
opportunity to discuss this waiver with counsel.   Debtor further
agrees that any bankruptcy or insolvency proceeding initiated by Debtor will
only be brought in the Federal Court within the Southern District of New
York.

    

    12.         Miscellaneous.

    

    12.1         Expenses.  Debtors
shall pay to the Subscribers, on demand, the amount of any and all reasonable
expenses, including, without limitation, attorneys’ fees, legal expenses and
brokers’ fees, which the Subscribers may incur in connection with (a) sale,
collection or other enforcement or disposition of Collateral; (b) exercise or
enforcement of any the rights, remedies or powers of the Subscribers hereunder
or with respect to any or all of the Obligations upon breach or threatened
breach; or (c) failure by Debtors to perform and observe any agreements of
Debtors contained herein which are performed by Subscribers.

    

    12.2         Waivers, Amendment and
Remedies.  No course of dealing by the Subscribers and no
failure by the Subscribers to exercise, or delay by the Subscribers in
exercising, any right, remedy or power hereunder shall operate as a waiver
thereof, and no single or partial exercise thereof shall preclude any other or
further exercise thereof or the exercise of any other right, remedy or power of
the Subscribers.  No amendment, modification or waiver of any
provision of this Agreement and no consent to any departure by Debtors therefrom
shall, in any event, be effective unless contained in a writing signed by the
Subscribers, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. The rights,
remedies and powers of the Subscribers, not only hereunder, but also under any
instruments and agreements evidencing or securing the Obligations and under
applicable law are cumulative, and may be exercised by the Subscribers from time
to time in such order as the Subscribers may elect.

     

    12.3         Notices.  All
notices or other communications given or made hereunder shall be in writing and
shall be personally delivered or deemed delivered the first business day after
being faxed (provided that a copy is delivered by first class mail) to the party
to receive the same at its address set forth below or to such other address as
either party shall hereafter give to the other by notice duly made under this
Section:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  To
      Debtors:

                	
                  Glen
      Rose Petroleum Corporation

                
	 
      	
                  22762
      Westheimer Parkway

                
	 
      	
                  Suite
      515

                
	 
      	
                  Katy,
      TX 77450

                
	 
      	
                  Attn:
      Andrew Taylor-Kimmins, President

                
	 
      	
                  Fax:
      (832) 437-4037

                
	 
      	 
      
	 
      	
                  UHC
      Petroleum Corporation

                
	 
      	
                  22762
      Westheimer Parkway

                
	 
      	
                  Suite
      515

                
	 
      	
                  Katy,
      TX 77450

                
	 
      	
                  Attn:
      Andrew Taylor-Kimmins, President

                
	 
      	
                  Fax:
      (832) 437-4037

                
	 
      	 
      
	 
      	
                  UHC
      Petroleum ServicesCorporation

                
	 
      	
                  22762
      Westheimer Parkway

                
	 
      	
                  Suite
      515

                
	 
      	
                  Katy,
      TX 77450

                
	 
      	
                  Attn:
      Andrew Taylor-Kimmins, President

                
	 
      	
                  Fax:
      (832) 437-4037

                
	 
      	 
      
	 
      	
                  National
      Heritage Sales Corporation

                
	 
      	
                  22762
      Westheimer Parkway

                
	 
      	
                  Suite
      515

                
	 
      	
                  Katy,
      TX 77450

                
	 
      	
                  Attn:
      Andrew Taylor-Kimmins, President

                
	 
      	
                  Fax:
      (832) 437-4037

                
	 
      	 
      
	 
      	
                  With
      a copy by fax only to:

                
	 
      	 
      
	 
      	
                  Walter
      Reissman

                
	 
      	
                  Weisshorn
      Management

                
	 
      	
                  400
      Rella Blvd.

                
	 
      	
                  Montebello,
      NY 10901

                
	 
      	
                  Fax:
      (845) 368-0071

                
	 
      	 
      
	 
      	
                  and

                
	 
      	 
      
	 
      	
                  John
      R Fahy, Esq.

                
	 
      	
                  Whitaker,
      Chalk, Swindle & Sawyer, LLP

                
	 
      	
                  301
      Commerce St

                
	 
      	
                  Suite
      3500

                
	 
      	
                  Fort
      Worth, TX 76102

                
	 
      	
                  Fax:
      (817) 878-0501

                
	 
      	 
      
	
                  To
      Subscribers:

                	
                  To
      the addresses and fax numbers listed on

                
	 
      	
                  Schedule
      2 hereto

                

        

      

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      	
              To
      Collateral Agent:

            	
              Iroquois
      Capital Opportunity Fund LP

            
	 
      	
              641
      Lexington Avenue, 26th
      Floor

            
	 
      	
              New
      York, NY 10022

            
	 
      	
              Attn:
      Mitch Kulick, Esq.

            
	 
      	
              Fax:
      (212) 207-3452

            
	 
      	 
      
	
              If
      to Debtors or Subscribers,

            	 
      
	
              or
      Collateral Agent

            	 
      
	
              with
      a copy by telecopier only to:

            	 
      
	 
      	 
      
	 
      	
              Grushko
      & Mittman, P.C.

            
	 
      	
              551
      Fifth Avenue, Suite 1601

            
	 
      	
              New
      York, New York 10176

            
	 
      	
              Fax:
      (212) 697-3575

            

    

    

    Any party
may change its address by written notice in accordance with this
paragraph.

    

    12.4         Term; Binding
Effect.  This Agreement shall (a) remain in full force and
effect until payment and satisfaction in full of all of the Obligations; (b) be
binding upon each Debtor, and its successors and permitted assigns; and (c)
inure to the benefit of the Subscribers and its successors and
assigns.

    

    12.5         Captions.  The
captions of Paragraphs, Articles and Sections in this Agreement have been
included for convenience of reference only, and shall not define or limit the
provisions of this agreement and have no legal or other significance
whatsoever.

    

    12.6         Governing Law; Venue;
Severability.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to
conflicts of laws principles that would result in the application of the
substantive laws of another jurisdiction, except to the extent that the
perfection of the security interest granted hereby in respect of any item of
Collateral may be governed by the law of another jurisdiction.  Any
legal action or proceeding against a Debtor with respect to this Agreement must
be brought only in the courts in the State of New York or of the United States
for the Southern District of New York, and, by execution and delivery of this
Agreement, each Debtor hereby irrevocably accepts for itself and in respect of
its property, generally and unconditionally, the jurisdiction of the aforesaid
courts.  Each Debtor hereby irrevocably waives any objection which
they may now or hereafter have to the laying of venue of any of the aforesaid
actions or proceedings arising out of or in connection with this Agreement
brought in the aforesaid courts and hereby further irrevocably waives and agrees
not to plead or claim in any such court that any such action or proceeding
brought in any such court has been brought in an inconvenient
forum.  If any provision of this Agreement, or the application thereof
to any person or circumstance, is held invalid, such invalidity shall not affect
any other provisions which can be given effect without the invalid provision or
application, and to this end the provisions hereof shall be severable and the
remaining, valid provisions shall remain of full force and effect.

    

    12.7         Entire
Agreement.  This Agreement contains the entire agreement of the
parties and supersedes all other agreements and understandings, oral or written,
with respect to the matters contained herein except if such other agreement or
understanding grants greater or other rights or benefits to the Subscribers or
Collateral Agent or conflicts with this Agreement, then in the absolute
discretion of the Subscribers and Collateral Agent, Subscribers and Collateral
Agent may elect which agreements and understandings or components thereof shall
govern.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    12.8         Counterparts/Execution.  This
Agreement may be executed in any number of counterparts and by the different
signatories hereto on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument.  This Agreement may be executed by facsimile
signature and delivered by electronic transmission.

    

    13.         Termination;
Release.  When the Obligations have been indefeasibly paid and
performed in full or all outstanding Note have been converted to common stock
pursuant to the terms of the Note and the Subscription Agreements, this
Agreement shall terminated, and the Subscribers, at the request and sole expense
of the Debtors, will execute and deliver to the Debtors the proper instruments
(including UCC termination statements) acknowledging the termination of the
Security Agreement, and duly assign, transfer and deliver to the Debtors,
without recourse, representation or warranty of any kind whatsoever, such of the
Collateral, including, without limitation, Securities and any Additional
Collateral, as may be in the possession of the Subscribers.

    

    14.         Subscribers Powers.

    

    14.1         Subscribers
Powers.  The powers conferred on the Subscribers hereunder are
solely to protect Subscribers’ interest in the Collateral and shall not
impose any duty on it to exercise any such powers.

    

    14.2         Reasonable
Care.  The Subscribers is required to exercise reasonable
care in the custody and preservation of any Collateral in its possession;
provided, however, that the Subscribers shall be deemed to have exercised
reasonable care in the custody and preservation of any of the Collateral if it
takes such action for that purposes as any owner thereof reasonably requests in
writing at times other than upon the occurrence and during the continuance of
any Event of Default, but failure of the Subscribers, to comply with any such
request at any time shall not in itself be deemed a failure to exercise
reasonable care.

    

    14.3         Majority in
Interest.   The rights of the Subscribers hereunder,
except as otherwise set forth herein shall be exercised upon the approval of
Subscribers holding 75% of the outstanding Obligations, which must include
Iroquois Capital Opportunity Fund LP for so long as Iroquois Capital Opportunity
Fund LP is the holder of not less than $100,000 of outstanding Note Principal
(“Majority in Interest”) at the time such approval is sought or
given.  Any tangible or physical Collateral shall be delivered to and
be held by the Collateral Agent pursuant to this Agreement and on behalf of all
Subscribers as to their respective rights.

    

    14.4         Authority of Collateral
Agent.  The Collateral Agent was appointed by the Subscribers
pursuant to a Collateral Agent Agreement of even date herewith.  All
of the rights and benefits granted to the Subscribers pursuant to this
Agreement, including the security interest and enforcement rights are also
granted to the Collateral Agent and will be exercised by Collateral Agent on
behalf of Subscribers pursuant to the Collateral Agent Agreement.  All
deliveries required to be made by Debtors hereunder shall be made to the
Collateral Agent.  UCC-1 and other financing statements may identify
the Collateral Agent as the secured party.

    

    [THIS
SPACE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

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

    

    “DEBTOR”

    

    GLEN ROSE
PETROLEUM CORPORATION

    a
Delaware corporation

    

    
      
        
          	
                  By: 

                	
                    

                
	 
      	
                  Andrew
      Taylor-Kimmins

                
	 
      	
                  President

                

        

      

    

    

    Agreed
and Accepted by:

    

    COLLATERAL
AGENT:

    

    IROQUOIS
CAPITAL OPPORTUNITY FUND, LP

    

    
      
        
          	
                  By: 

                	 
      
	
                  Name:

                
	
                  Title:

                

        

      

    

    

    This
Security Agreement may be signed by facsimile signature and

    delivered
by confirmed facsimile transmission.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    SUBSIDIARY
SIGNATURE PAGE TO

    SECURITY
AGREEMENT

     

    The
undersigned, hereby executes and delivers the Security Agreement to which this
signature page is attached and agrees to be bound by the Security Agreement on
the date set forth on the first page of the Security Agreement. This counterpart
signature page, together with all counterparts of the Security Agreement and
signature pages of the other parties named therein, shall constitute one and the
same instrument in accordance with the terms of the Security
Agreement.

    

    
      
        
          
            
              
                
                  	
                            

                        	 
      
	
                          UHC
      Petroleum Corporation

                        	 
      

                

              

            

          

        

      

    

     

    
      
        
          
            
              	
                        

                    	 
      
	
                      [Signature]

                    	 
      

            

          

        

      

    

    
 

    
      
        	
                Name: 

              	
                Andrew Taylor-Kimmins

              
	
                Title: President

              

      

    

    

    
      	
              Mailing
      Address:

            	
              Telephone
      No. (832) 437-4026

            
	
              22762
      Westheimer Parkway

            	
              Facsimile
      No: (832) 437-4037

            
	
              Suite
      515

            	
              Email
      Address:_____________________

            
	
              Katy,
      TX 77450

            	 
      

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    SUBSIDIARY
SIGNATURE PAGE TO

    SECURITY
AGREEMENT

     

    The
undersigned, hereby executes and delivers the Security Agreement to which this
signature page is attached and agrees to be bound by the Security Agreement on
the date set forth on the first page of the Security Agreement. This counterpart
signature page, together with all counterparts of the Security Agreement and
signature pages of the other parties named therein, shall constitute one and the
same instrument in accordance with the terms of the Security
Agreement.

    
      

      
        
          
            
              
                
                  
                    	
                              

                          	 
      
	
                            

                              UHC
      Petroleum Services Corporation

                            

                          	 
      

                  

                

              

            

          

        

      

       

      
        
          
            
              
                	
                          

                      	 
      
	
                        [Signature]

                      	 
      

              

            

          

        

      

      
 

      
        
          	
                  Name: 

                	
                  Andrew Taylor-Kimmins

                
	
                  Title: President

                

        

      

      

      
        	
                Mailing
      Address:

              	
                Telephone
      No. (832) 437-4026

              
	
                22762
      Westheimer Parkway

              	
                Facsimile
      No: (832) 437-4037

              
	
                Suite
      515

              	
                Email
      Address:_____________________

              
	
                Katy,
      TX 77450

              	 
      

      

      

        
          
             

          

          
            15

            
              

            

          

          
             

          

        

      

    

     

    SUBSIDIARY
SIGNATURE PAGE TO

    SECURITY
AGREEMENT

     

    The
undersigned, hereby executes and delivers the Security Agreement to which this
signature page is attached and agrees to be bound by the Security Agreement on
the date set forth on the first page of the Security Agreement. This counterpart
signature page, together with all counterparts of the Security Agreement and
signature pages of the other parties named therein, shall constitute one and the
same instrument in accordance with the terms of the Security
Agreement.

    
      

      
        
          
            
              
                
                  
                    	
                              

                          	 
      
	
                            

                              

                                National
      Heritage Sales Corporation

                              

                            

                          	 
      

                  

                

              

            

          

        

      

       

      
        
          
            
              
                	
                          

                      	 
      
	
                        [Signature]

                      	 
      

              

            

          

        

      

      
 

      
        
          	
                  Name: 

                	
                  Andrew Taylor-Kimmins

                
	
                  Title: President

                

        

      

      

      
        	
                Mailing
      Address:

              	
                Telephone
      No. (832) 437-4026

              
	
                22762
      Westheimer Parkway

              	
                Facsimile
      No: (832) 437-4037

              
	
                Suite
      515

              	
                Email
      Address:_____________________

              
	
                Katy,
      TX 77450

              	 
      

      

      

        
          
             

          

          
            16

            
              

            

          

          
             

          

        

      

    

     

    SUBSCRIBER
SIGNATURE PAGE TO

    SECURITY
AGREEMENT

     

    The
undersigned, in its capacity as a Subscriber, hereby executes and delivers the
Security Agreement to which this signature page is attached and agrees to be
bound by the Security Agreement on the date set forth on the first page of the
Security Agreement. This counterpart signature page, together with all
counterparts of the Security Agreement and signature pages of the other parties
named therein, shall constitute one and the same instrument in accordance with
the terms of the Security Agreement.

    

    
      
        
          
            
              
                	
                          

                      
	
                        [Signature]

                      

              

            

          

        

      

    

    

    
      
        
          	
                  Name: 

                	
                    

                
	
                  Title: 

                	
                    

                

        

      

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    GLEN
ROSE PETROLEUM CORPORATION

    SECURITY
AGREEMENT EXHIBITS AND SCHEDULES

    

    Schedule
1 – Subsidiaries/Guarantors

    

    Schedule
2 – Subscribers

    

    Schedule
3 – Deposit Accounts

    

    Schedule
6.1 – Security Interests

    

    Exhibit
A – Pledge Amendment

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    TO

     

    SECURITY
AGREEMENT

     

    PLEDGE
AMENDMENT

     

    This
Pledge Amendment, dated February ___, 2010, is delivered pursuant to
Section 4.4 of the Security Agreement referred to below.  The
undersigned hereby agrees that this Pledge Amendment may be attached to the
Security Agreement, dated February ___, 2009, as it may heretofore
have been or hereafter may be amended, restated, supplemented or otherwise
modified from time to time and that the shares listed on this Pledge Amendment
shall be hereby pledged and assigned to Subscribers and become part of the
Collateral referred to in such Security Agreement and shall secure all of the
Obligations referred to in such Security Agreement.

    

    
      
        
          
            
              	
                      Subsidiary

                    	 	
                      Shares Issued

                    	 	
                      % Owned

                    
	
                      UHC
      Petroleum Corporation

                    	 	 
      	 	
                      100%

                    
	
                      UHC
      Petroleum Services Corporation

                    	 	 
      	 	
                      100%

                    
	
                      National
      Heritage Sales Corporation

                    	 	 
      	 	
                      100%

                    

            

          

        

      

    

    

    
      
        
          	
                  Glen
      Rose Petroleum Corporation

                
	 
      
	
                  By:

                	 
      
	 
      	
                  Andrew
      Taylor-Kimmins,
President

                

        

      

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    SECURITY
AGREEMENT

    SCHEDULE
1

    

    SUBSIDIARIES/GUARANTORS

    

    UHC
Petroleum Corporation, a Texas corporation

    

    UHC
Petroleum Services Corporation, a Texas corporation

    

    National
Heritage Sales Corporation, a Texas corporation

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    SCHEDULE
2

    SUBSCRIBERS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  SUBSCRIBER AND ADDRESS

                                	 	
                                  PRINCIPAL AMOUNT

                                	 	 	
                                  WARRANT SHARES

                                	 
	
                                  TOTALS

                                	 	$	3,350,000.00	 	 	 	11,166,667	 

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    SCHEDULE
3

    

    DEPOSIT
ACCOUNTS

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    SCHEDULE
6.1

    

    SECURITY
INTERESTS

    
      
         

      

      
        23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]