Document:

helix_8k-ex1004.htm

    
      

    

    Exhibit
10.4

     

    

    
      	
              $130,000.00

            	
              May
      1, 2010

            

    

    

    HELIX WIND, CORP.

    Convertible
Secured Promissory Note

     

    FOR VALUE RECEIVED, Helix
Wind, Corp., a Nevada corporation (the “Borrower”),
hereby promises to pay to St. George Investments, LLC, an Illinois limited
liability company, its successor or assigns (the “Lender,”
and together with the Borrower, the “Parties”),
the principal sum of $130,000.00 (the “Principal
Amount”) together with all accrued and unpaid interest thereon, fees
incurred or other amounts owing hereunder, all as set forth below in this
Convertible Secured Promissory Note (this “Note”).
This Note is issued pursuant to that certain Note and Warrant Purchase Agreement
dated as of March 30, 2010, entered into by and between the Borrower and the
Lender (the “Purchase
Agreement”).

     

    1.           Principal and Interest
Payments. Interest on the unpaid principal balance of this Note shall not
accrue unless a Liquidity Default or an Event of Default (each as defined
hereafter) occurs.  As set forth in hereafter, upon the occurrence of
a Liquidity Default or an Event of Default, the Outstanding Balance (as defined
below) of this Note shall accrue simple interest at the rate of 15.00% per annum
from and after the date of the occurrence of the Liquidity Default or Event of
Default, whether before or after judgment, until paid in full. Notwithstanding
any provision to the contrary herein, in no event shall the applicable interest
rate at any time exceed the maximum interest rate allowed under applicable
law.  If not sooner converted as provided below, the entire unpaid
principal balance and all accrued and unpaid interest, if any, shall be due and
payable upon the earlier of (a) the date that is six months from the date of
this Note, or (b) the date on which the Borrower has raised in excess of an
aggregate of $1,000,000 from investors or lenders other than the Lender
subsequent to the date of the Purchase Agreement (the “Maturity
Date”). All payments owing hereunder shall be made in lawful money of the
United States of America delivered to the Lender at the address furnished to the
Borrower for that purpose. All payments shall be applied first to costs of
collection, if any, then to accrued and unpaid interest, and thereafter to
principal. For purposes hereof, the term “Outstanding
Balance” means the sum of the outstanding principal balance of this Note
and any accrued but unpaid interest, collection and enforcement costs, and any
other fees incurred under this Note.

     

    2.           Prepayment by the Borrower.
The Borrower may, in its sole and absolute discretion, pay all or any portion of
the Outstanding Balance at any time prior to the Maturity Date without penalty
or premium.  Notwithstanding anything to the contrary herein, so long
as no Liquidity Default or Event of Default (as defined hereafter) has occurred,
the Borrower may fully repay this Note (the “Prepayment
Right”) at any time prior to the Maturity Date at a price equal to
$100,000.00 plus a multiple of (a) $100,000.00 times (b) three-tenths (0.3)
times (c) a fraction, the numerator of which is the number of days elapsed since
the date of this Note and the denominator of which is one hundred eighty
(180).  For avoidance of doubt, (x) interest hereunder, if applicable,
shall at all times be computed based on the greater of the Principal Amount or
the Outstanding Balance, and (y) if a Liquidity Default or Event of Default has
occurred, the Borrower shall not have the Prepayment Right.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           Original Issue
Discount.  The Borrower acknowledges that the Principal Amount
of this Note exceeds the Additional Net Purchase Price (as defined in the Note
Agreement) for this Note and that such excess is an original issue discount and
shall be fully earned and charged to the Borrower upon the execution of this
Note, and shall be paid to the Lender as part of the outstanding principal
balance as set forth in this Note.   

     

    4.           Conversion.

     

    (a)           Optional
Conversion. At any time or from time
to time after the date of this Note and prior to payment in full of the
Outstanding Balance, the Lender shall have the right, at the Lender’s option, to
convert the Outstanding Balance, in whole or in part (the “Conversion
Amount”), into common stock (the “Common
Stock”) of the Borrower.  The number of shares of Common Stock
to be issued upon such conversion shall be determined by dividing (i) the
Conversion Amount by (ii) the lower of (1) 100% of the volume-weighted average
price of the Common Stock (the “VWAP”) for
the three (3) trading days with the lowest VWAP during the twenty (20) trading
days immediately preceding the date set forth on the Notice of Conversion
(defined below), or (2) 50% of the lower of (A) the average VWAP over the five
(5) trading days immediately preceding the date set forth in the Notice of
Conversion or (B) the VWAP on the day immediately preceding the date set forth
in the Notice of Conversion (the lower of the foregoing (1) and (2), the “Conversion
Price”).  The trading data used to compute the VWAP shall be as
reported by Bloomberg, LP (“Bloomberg”),
or if such information is not then being reported by Bloomberg, then as reported
by such other data information source as may be selected by the
Lender.

     

    (b)           Conversion Mechanics.
In order to convert this Note into Common Stock, the Lender shall give written
notice to the Borrower at its principal corporate office or the notice address
provided in the Purchase Agreement (which notice, notwithstanding anything
herein to the contrary, may be given via facsimile, email, or other means in the
discretion of the Lender) pursuant to the form attached hereto as Exhibit
A (the “Notice of
Conversion”) of the election to convert the same pursuant to this
Section.  Such Notice of Conversion shall state the Conversion Amount,
the number of shares of Common Stock to which Lender is entitled pursuant to the
Notice of Conversion (the “Conversion
Shares”), and the account in which the shares of Common Stock are to be
deposited (the “Lender
Account”).  The Borrower shall immediately, but in no event
later than three (3) days after receipt of a Notice of Conversion (the “Delivery
Date”), deliver the Conversion Shares to the Lender
Account.  Notwithstanding anything herein to the contrary, all such
deliveries of Conversion Shares shall be electronic, via DWAC or
DTC.  In the event the Borrower fails to deliver the Conversion Shares
on or before the Delivery Date, in addition to all other remedies available to
the Lender hereunder and at law or in equity, a penalty equal to 1.5% of the
Conversion Amount shall be added to the balance of this Note per day until such
Conversion Shares are delivered.  The conversion shall be deemed to
have been made immediately prior to the close of business on the date of the
Notice of Conversion, and the person or entity entitled to receive the shares of
Common Stock upon such conversion shall be treated for all purposes as the
record holder or holders of such shares of Common Stock as of such
date.

     

    (c)           No Fractional Shares.
Conversion calculations pursuant to Section 4(a) shall be rounded up to the
nearest whole share, and no fractional shares shall be issuable by the Borrower
upon conversion of this Note. All shares issuable upon a conversion of this Note
(including fractions thereof) shall be aggregated for purposes of determining
whether such conversion would result in the issuance of a fractional
share.

     

    
      
         

      

      
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    (d)           No
Impairment.  The Borrower will not, by amendment of its
Articles of Incorporation or through any reorganization, recapitalization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Borrower, but will at all times in good faith assist in the carrying out of all
the provisions of this Section 4 and in the taking of all such action as may be
necessary or appropriate in order to protect the conversion rights of the Lender
against impairment.

     

    5.           Certain Adjustments. The
number and class or series of shares into which this Note may be converted under
Section 4 shall be subject to adjustment in accordance with the following
provisions:

     

    (a)           Computation of Adjusted
Conversion Price.  Except as hereinafter provided, in case the
Borrower shall at any time after the date hereof issue or sell any (i) shares of
Common Stock or preferred shares convertible into Common Stock, or (ii) debt,
warrants, options or other instruments or securities which are convertible into
or exercisable for shares of Common Stock (together herein referred to as “Equity
Securities”), in each case for consideration (or with a conversion price)
per common share less than the Conversion Price in effect immediately prior to
the issuance or sale of such securities or instruments, or without
consideration, other than Excepted Issuances (as defined below) then forthwith
upon such issuance or sale, the Conversion Price shall (until another such
issuance or sale) be reduced to the price (calculated to the nearest full cent)
equal to the price (or conversion price) of any such securities or
instruments.

     

    “Excepted
Issuances” shall mean, collectively, (i) the Borrower’s issuance of
securities in connection with strategic license agreements and other partnering
arrangements so long as such issuances are not for the purpose of raising
capital and in which holders of such securities or debt are not at any time
granted registration rights, and (ii) the Borrower’s issuance of Common Stock or
the issuances or grants of options to purchase Common Stock to employees,
directors, and consultants, pursuant to plans which are constituted on the date
of this Note.

     

    For purposes of any computation to be
made in accordance with this Section 5, the following provisions shall be
applicable:

     

    (i)           In
case of the issuance or sale of any shares of Equity Securities for
consideration part or all of which shall be cash, the amount of the cash
consideration shall be deemed to be the amount of cash received by the Borrower
for such shares (or, if shares of stock are offered by the Borrower for
subscription, the subscription price, or, if either of such securities shall be
sold to underwriters or dealers for public offering without a subscription
price, the public offering price, before deducting therefrom any compensation
paid or discount allowed in the sale, underwriting or purchase thereof by
underwriters or dealers or other persons or entities performing similar
services), or any expenses incurred in connection therewith and less any amounts
payable to security holders or any affiliate thereof, including, without
limitation, any employment agreement, royalty, consulting agreement, covenant
not to compete, earnout or contingent payment right or similar arrangement,
agreement or understanding, whether oral or written; all such amounts shall be
valued at the aggregate amount payable thereunder whether such payments are
absolute or contingent and irrespective of the period or uncertainty of payment,
the rate of interest, if any, or the contingent nature thereof.

     

    
      
         

      

      
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    (ii)           In
case of the issuance or sale (otherwise than as a dividend or other distribution
on any stock of the Borrower) of shares of Equity Securities for a consideration
part or all of which shall be other than cash, the amount of the consideration
therefore other than cash shall be deemed to be the value of such consideration
as determined in good faith by the Board of Directors of the
Borrower.

     

    (iii)           Shares
of Equity Securities issuable by way of dividend or other distribution on any
capital stock of the Borrower shall be deemed to have been issued immediately
after the opening of business on the day following the record date for the
determination of stockholders entitled to receive such dividend or other
distribution and shall be deemed to have been issued without
consideration.

     

    (iv)           The
reclassification of securities of the Borrower other than shares of Equity
Securities into securities including shares of Equity Securities shall be deemed
to involve the issuance of such shares of Equity Securities for consideration
other than cash immediately prior to the close of business on the date fixed for
the determination of security holders entitled to receive such shares, and the
value of the consideration allocable to such shares of stock shall be determined
as provided in this Section 5.

     

    (v)           The
number of shares of Equity Securities at any one time outstanding shall include
the aggregate number of shares issued or issuable (subject to readjustment upon
the actual issuance thereof) upon the exercise of then outstanding options,
rights, warrants, and convertible and exchangeable securities.

     

    (b)            Adjustment for
Reorganization or Recapitalization. If, while this Note remains
outstanding and has not been converted, there shall be a reorganization or
recapitalization of the Borrower (other than a combination, reclassification,
exchange or subdivision of shares otherwise provided for herein), all necessary
or appropriate lawful provisions shall be made so that the Lender shall
thereafter be entitled to receive upon conversion of this Note, the greatest
number of shares of stock or other securities or property that a holder of the
class of securities deliverable upon conversion of this Note would have been
entitled to receive in such reorganization or recapitalization if this Note had
been converted immediately prior to such reorganization or recapitalization, all
subject to further adjustment as provided in this Section 5. If the per share
consideration payable to the Lender for such class of securities in connection
with any such transaction is in a form other than cash or marketable securities,
then the value of such consideration shall be determined in good faith by the
Borrower’s Board of Directors. The foregoing provisions of this subsection shall
similarly apply to successive reorganizations or recapitalizations and to the
stock or securities of any other corporation that are at the time receivable
upon the conversion of this
Note. In all events, appropriate adjustment shall be made in the application of
the provisions of this Note (including adjustment of the conversion price and
number of shares into which this Note is then convertible pursuant to the terms
and conditions of this Note) with respect to the rights and interests of the
Lender after the transaction, to the end that the provisions of this Note shall
be applicable after that event, as near as reasonably may be, in relation to any
shares or other property deliverable or issuable after such reorganization or
recapitalization upon conversion of this Note.

     

    
      
         

      

      
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    (c)            Adjustments for Split
Subdivision or Combination of Shares.  If the Borrower at any time
while this Note remains outstanding and unconverted, shall split or subdivide
any class of securities into which this Note may be converted into a different
number of securities of the same class, the number of shares of such class
issuable upon conversion of this Note immediately prior to such split or
subdivision shall be proportionately increased and the conversion price for such
class of securities shall be proportionately decreased. If the Borrower at any
time while this Note, or any portion hereof, remains outstanding and unconverted
shall combine any class of securities into which this Note may be converted,
into a different number of securities of the same class, the number of shares of
such class issuable upon conversion of this Note immediately prior to such
combination shall be proportionately decreased and the conversion price for such
class of securities shall be proportionately increased.

     

    (d)            Adjustments for Dividends in
Stock or Other Securities or Property.  If, while this Note remains
outstanding and unconverted, the holders of any class of securities as to which
conversion rights under this Note exist at the time shall have received, or, on
or after the record date fixed for the determination of eligible stockholders,
shall have become entitled to receive, without payment therefor, other or
additional stock or other securities or property (other than cash) of the
Borrower by way of dividend, then and in each case, this Note shall represent
the right to acquire, in addition to the number of shares of such class of
security receivable upon conversion of this Note, and without payment of any
additional consideration therefor, the amount of such other or additional stock
or other securities or property (other than cash) of the Borrower that such
holder would hold on the date of such conversion had it been the holder of
record of the class of security receivable upon conversion of this Note on the
date hereof and had thereafter, during the period from the date hereof to and
including the date of such conversion, retained such shares and/or all other
additional stock available by it as aforesaid during said period, giving effect
to all adjustments called for during such period by the provisions of this
Section 5.

     

    (e)            No Change
Necessary.  The form of this Note need not be changed because of any
adjustment in the number of shares of Common Stock issuable upon its
conversion.

     

    6.           Further Adjustments. In case at any time or,
from time to time, the Borrower shall take any action that affects the class of
securities into which this Note may be converted under Section 4, other than an
action described herein, then, unless such action will not have a material
adverse effect upon the rights of the Lender, the number of shares of such class
of securities (or other securities) into which this Note is convertible shall be
adjusted in such a manner and at such time as shall be equitable under the
circumstances.

     

    
      
         

      

      
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    7.           Certificate as to Adjustments.
Upon the occurrence of each adjustment or readjustment pursuant to Section 5 or
Section 6, the Borrower at its sole expense shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and furnish to
the Lender a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based.
The Borrower shall, upon the written request at any time of the Lender, furnish
or cause to be furnished to the Lender a like certificate setting forth (i) such
adjustments and readjustments, and (ii) the number and class of securities and
the amount, if any, of other property which at the time would be received upon
the conversion of this Note under Section 4.

     

    8.           Change of Control.  In
the event of (i) any transaction or series of related transactions (including
any reorganization, merger or consolidation) that results in the transfer of 50%
or more of the outstanding voting power of the Borrower, or (ii) a sale of all
or substantially all of the assets of the Borrower to another person or entity,
this Note shall be automatically due and payable. The Borrower will give the
Lender not less than ten (10) business days prior written notice of the
occurrence of any events referred to in this Section 8.

     

    9.           Representations and Warranties of the
Borrower.  In addition to the representations and warranties
set forth in the Purchase Agreement, which are incorporated herein, the Borrower
hereby represents and warrants to the Lender that:

     

    (a)           The
Borrower understands and acknowledges that the number of Conversion Shares
issuable upon conversion of this Note will increase in certain circumstances.
The Borrower further acknowledges that its obligation to issue Conversion Shares
upon conversion of this Note in accordance with its terms is absolute and
unconditional regardless of the dilutive effect that such issuance may have on
the ownership interests of other stockholders of the Borrower;

     

    (b)           The
Borrower’s Common Stock is registered under Section 12(g) of the Securities
Exchange Act of 1934 (the “Exchange
Act”);

     

    (c)           The
Borrower is subject to the reporting requirements of section 13 or 15(d) of the
Exchange Act and has filed all required reports under section 13 or 15(d) of the
Exchange Act during the 12 months prior to the date hereof (or for such shorter
period that the issuer was required to file such reports); and

     

    (d)           The
issuance of this Note is duly authorized. Upon conversion in accordance with the
terms of this Note, the Conversion Shares, when issued, will be validly issued,
fully paid and non-assessable, free from all taxes, liens, claims, pledges,
mortgages, restrictions, obligations, security interests and encumbrances of any
kind, nature and description. The Borrower has reserved from its duly authorized
capital stock the appropriate number of shares of Common Stock for issuance upon
conversion of this Note as required by the terms of this Note.

     

    10.           Affirmative and Negative
Covenants. In addition to the covenants set forth in the Purchase
Agreement, the Borrower covenants and agrees, while any amounts under this Note
are outstanding, as follows:

     

    
      
         

      

      
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    (a)           The
Borrower shall do all things necessary to preserve and keep in full force and
effect its corporate existence, including, without limitation, all licenses or
similar qualifications required by it to engage in its business in all
jurisdictions in which it is at the time so engaged; and continue to engage in
business of the same general type as conducted as of the date hereof;
and  continue to conduct its business substantially as now conducted
or as otherwise permitted hereunder;

     

    (b)           The
Borrower shall pay and discharge promptly when due all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
in respect of its property before the same shall become delinquent or in
default, which, if unpaid, might reasonably be expected to give rise to liens or
charges upon such properties or any part thereof, unless, in each case, the
validity or amount thereof is being contested in good faith by appropriate
proceedings and the Borrower has maintained adequate reserves with respect
thereto in accordance with GAAP;

     

    (c)           The
Borrower shall comply in all material respects with all federal, state and local
laws and regulations, orders, judgments, decrees, injunctions, rules,
regulations, permits, licenses, authorizations and requirements applicable to it
(collectively, “Requirements”)
of all governmental bodies, departments, commissions, boards, companies or
associations insuring the premises, courts, authorities, officials or officers
which are applicable to the Borrower or any of its properties, except where the
failure to so comply would not have a material adverse effect on the Borrower or
any of its properties; provided, however, that nothing
provided herein shall prevent the Borrower from contesting the validity or the
application of any Requirements;

     

    (d)           The
Borrower shall keep proper records and books of account with respect to its
business activities, in which proper entries, reflecting all of their financial
transactions, are made in accordance with GAAP;

     

    (e)           From
the date hereof until all the Conversion Shares either have been sold by the
Lender, or may permanently be sold by the Lender without any restrictions
pursuant to Rule 144 (the “Registration
Period”), the Borrower shall file with the Securities and Exchange
Commission (the “SEC”) in a
timely manner all required reports under section 13 or 15(d) of the Exchange
Act, as amended, and such reports shall conform to the requirement of the
Exchange Act and the SEC for filing thereunder;

     

    (f)           The
Borrower shall furnish to the Lender so long as the Lender owns Common Stock,
promptly upon written request, (i) a written statement by the Borrower that it
has complied with the reporting requirements of Rule 144, (ii) a copy of the
most recent annual or quarterly report of the Borrower and such other reports
and documents so filed by the Borrower, and (iii) such other information as may
be reasonably requested to permit the Lender to sell such securities pursuant to
Rule 144 without registration;

     

    (g)           During
the Registration Period, the Borrower shall not terminate its status as an
issuer required to file reports under the Exchange Act even if the Exchange Act
or the rules and regulations thereunder would otherwise permit such
termination;

     

    
      
         

      

      
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    (h)           On
the date hereof, the Borrower shall reserve for issuance to the Lender not less
than 850,000 shares for issuance upon conversions of the Note (the “Share
Reserve”). The Borrower represents that it has sufficient authorized and
unissued shares of Common Stock available to create the Share Reserve after
considering all other commitments that may require the issuance of Common Stock.
The Borrower shall take all action reasonably necessary to at all times have
authorized, and reserved for the purpose of issuance, such number of shares of
Common Stock as shall be necessary to effect the full conversion of the Note. If
at any time the Share Reserve is insufficient to effect the full conversion of
the Note, the Borrower shall increase the Share Reserve accordingly. If the
Borrower does not have sufficient authorized and unissued shares of Common Stock
available to increase the Share Reserve, the Borrower shall call and hold a
special meeting of the shareholders within thirty (30) days of such occurrence,
for the sole purpose of increasing the number of shares authorized. The
Borrower’s management shall recommend to the shareholders to vote in favor of
increasing the number of shares of Common Stock authorized. Management shall
also vote all of their shares in favor of increasing the number of authorized
shares of Common Stock;

     

    (i)           The
Borrower’s Common Stock shall be listed or quoted for trading on any of (a) the
American Stock Exchange, (b) New York Stock Exchange, (c) the Nasdaq Global
Market, (d) the Nasdaq Capital Market, or (e) the Nasdaq OTC Bulletin Board
(each, a “Primary
Market”). The Borrower shall promptly secure the listing of all shares of
Common Stock representing any or all of the Conversion Shares upon each national
securities exchange and automated quotation system, if any, upon which the
Common Stock is then listed (subject to official notice of issuance), and shall
maintain such listing of all such securities from time to time issuable under
the terms of the Transaction Documents (as such term is defined in the Purchase
Agreement);

     

    (j)           The
Borrower shall notify the Lender in writing, promptly upon learning thereof, of
any litigation or administrative proceeding commenced or threatened against the
Borrower involving a claim in excess of $100,000;

     

    (k)           The
Borrower shall use the proceeds from this Note for general working capital;
and

     

    (l)           The
Borrower will not issue any instructions to Island Stock Transfer or any other
transfer agent of the Company contrary to the instructions set forth in the
Irrevocable Instructions to Transfer Agent dated as of the date of the Purchase
Agreement given by the Borrower and Kenneth O. Morgan to Island Stock
Transfer.

     

    11.           Liquidity
Defaults.  Upon each occurrence of any of the following events
(each, a “Liquidity
Default”), the Outstanding Balance shall be immediately and automatically
increased to 125% of the Outstanding Balance in effect immediately prior to the
occurrence of such Liquidity Default (the “Liquidity Balance
Adjustment”), and upon the first occurrence of a Liquidity Default, (i)
the Outstanding Balance, as adjusted above, shall accrue interest at the rate of
15% per annum until this Note is repaid in full, and (ii) the Lender shall have
the right, at any time thereafter until this Note is repaid in full, to (a)
accelerate the Outstanding Balance, and (b) exercise default remedies under and
according to the terms of the Pledge (as defined hereafter); provided, however, that
notwithstanding anything to the contrary herein, in no event shall the Balance
Adjustments (as defined hereafter) be applied more than three (3)
times:

     

    
      
         

      

      
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    (a)           Decline in Volume. A
decline in the five-day average daily dollar volume of the Common Stock in its
Primary Market to less than $100,000.00 of volume per day.

     

    (b)           Decline in
VWAP.  A decline in the average VWAP for the Common Stock during any
consecutive five (5) day trading period to a per share price of less than eleven
cents ($0.11).

     

    For
avoidance of doubt, so long as no Event of Default shall have occurred, the
Lender shall remain obligated to purchase the Additional Notes and Additional
Warrants according to the terms and subject to the conditions of the Purchase
Agreement:

     

    12.           Default. If any of the events
specified below shall occur (each, an “Event of
Default”), (i) the Lender may declare the unpaid principal balance
together with all accrued and unpaid interest thereon immediately due and
payable, by notice in writing to the Borrower, (ii) the Lender may exercise
default remedies under and according to the terms of the Pledge, (iii) the
Outstanding Balance shall be immediately and automatically increased to 125% of
the Outstanding Balance in effect immediately prior to the occurrence of such
Event of Default (the “Default Balance
Adjustment” and, together with the Liquidity Balance Adjustment, the
“Balance
Adjustments”), and (iv) the Outstanding Balance, as adjusted above, shall
accrue interest at the rate of 15% per annum until this Note is repaid in full;
provided, however, that notwithstanding
anything to the contrary herein, in no event shall  the Balance
Adjustments be applied more than three (3) times:

     

    (a)           Failure to Pay. The
Borrower’s failure to make any payment when due and payable under the terms of
this Note including, without limitation, any payment of costs, fees, interest,
principal or other amount due hereunder.

     

    (b)           Failure to Deliver
Shares.  The Borrower’s failure to deliver the Conversion
Shares as provided under Section 4(b) of this Note.

     

    (c)           Breaches of
Covenants. The Borrower or its subsidiaries, if any, shall fail to
observe or perform any other covenant, obligation, condition or agreement
contained in this Note or the other Transaction Documents (as defined in the
Purchase Agreement).

     

    (d)           Representations and
Warranties. Any representation, warranty, certificate, or other statement
(financial or otherwise) made or furnished by or on behalf of the Borrower to
the Lender in writing included in this Note or in connection with any of the
Transaction Documents, or as an inducement to the Lender to enter into this Note
or any of the Transaction Documents, shall be false, incorrect, incomplete or
misleading in any material respect when made or furnished or becomes false
thereafter.

     

    (e)           Failure to Pay Debts;
Voluntary Bankruptcy. If any of the Borrower’s assets are assigned to its
creditors, if the Borrower fails to pay its debts generally as they become due,
or if the Borrower files any petition, proceeding, case or action for relief
under any bankruptcy, reorganization, insolvency or moratorium law, rule,
regulation, statute or ordinance (collectively, “Laws and
Rules”), or any other Law and Rule for the relief of, or related to,
debtors.

     

    
      
         

      

      
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    (f)           Insufficient Authorized
Shares. The Borrower’s failure to maintain sufficient authorized but
unissued common shares to honor the conversion of this Note.

     

    (g)           Involuntary
Bankruptcy. If any involuntary petition is filed under any bankruptcy or
similar Law or Rule against the Borrower, or a receiver, trustee, liquidator,
assignee, custodian, sequestrator or other similar official is appointed to take
possession of any of the assets or properties of the Borrower or any
guarantor.

     

    (h)           Governmental Action.
If any governmental or regulatory authority takes or institutes any action that
will materially affect the Borrower’s financial condition, operations or ability
to pay or perform the Borrower’s obligations under this Note.

     

    13.           Ownership Limitation.
Notwithstanding the provisions of this Note, in no event shall the this Note be
convertible to the extent that the issuance of Common Stock upon the conversion
thereof, after taking into account the Common Stock then owned by the Lender and
its affiliates, would result in the beneficial ownership by the Lender and its
affiliates of more than 9.99% of the outstanding Common Stock of the Borrower
(the “9.99%
Cap”); provided
that such restriction shall apply only for so long as the 9.99% Cap would
be exceeded by a conversion hereunder.  For purposes of this Section,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Exchange Act.

     

    14.           No Rights or Liabilities as
Shareholder. This Note does not by itself entitle the Lender to any
voting rights or other rights as a shareholder of the Borrower. In the absence
of conversion of this Note, no provisions of this Note, and no enumeration
herein of the rights or privileges of the Lender, shall cause the Lender to be a
shareholder of the Borrower for any purpose.

     

    15.           Collateral.  This
Note is secured by that certain Stock Pledge Agreement dated as of the date of
the Purchase Agreement executed by Kenneth O. Morgan, a shareholder of the
Borrower, in favor of the Lender encumbering 4,800,000 shares of Common Stock
pledged by Mr. Morgan thereunder, all as more specifically set forth therein
(the “Pledge”).

     

    16.           Binding Effect. This Note
shall be binding on the Parties and their respective heirs, successors, and
assigns; provided,
however, that the Borrower shall not assign its rights hereunder in whole
or in part without the express written consent of the Lender.

     

    17.           Governing Law; Venue. The
terms of this Note shall be construed in accordance with the laws of the State
of Illinois as applied to contracts entered into by Illinois residents within
the State of Illinois which contracts are to be performed entirely within the
State of Illinois.  With respect to any disputes arising out of or
related to this Note, the Parties consent to the exclusive jurisdiction of, and
venue in, the state courts in Illinois (or in the event of federal jurisdiction,
the United States District Court for the Northern District of
Illinois).

     

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

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    19.            Attorneys’ Fees. If any
action at law or in equity is necessary to enforce this Note or to collect
payment under this Note, the Lender shall be entitled to recover reasonable
attorneys’ fees directly related to such enforcement or collection
actions.

     

    20.            Amendments and Waivers;
Remedies. No failure or delay on the part of a Party hereto in exercising
any right, power or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right, power or remedy preclude
any other or further exercise thereof or the exercise of any other right, power
or remedy. The remedies provided for herein are cumulative and are not exclusive
of any remedies that may be available to a Party hereto at law, in equity or
otherwise. Any amendment, supplement or modification of or to any provision of
this Note, any waiver of any provision of this Note, and any consent to any
departure by either Party from the terms of any provision of this Note, shall be
effective (i) only if it is made or given in writing and signed by the Borrower
and the Lender and (ii) only in the specific instance and for the specific
purpose for which made or given.

     

    21.           Notices. All notices,
requests, demands, claims and other communications hereunder shall be in
writing.  Any notice, request, demand, claim or other communication
hereunder shall be deemed duly given if it is sent by registered or certified
mail, return receipt requested, postage prepaid, and addressed to the intended
recipient, as set forth in the Purchase Agreement. Any Party may send any
notice, request, demand, claim or other communication hereunder to the intended
recipient at the address set forth in the Purchase Agreement using any other
means (including personal delivery, expedited courier, messenger service,
facsimile, ordinary mail, or electronic mail), but no such notice, request,
demand, claim or other communication shall be deemed to have been duly given
unless and until it actually is received by the intended recipient or receipt is
confirmed electronically or by return mail.  Any Party may change the
address to which notices, requests, demands, claims and other communications
hereunder are to be delivered by giving the other Party notice in any manner
herein set forth.

     

    22.           
Entire Agreement. This
Note, together with the other Transaction Documents, contains the complete
understanding and agreement of the Borrower and Lender and supersedes all prior
representations, warranties, agreements, arrangements, understandings, and
negotiations. THIS NOTE, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS,
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF ANY ALLEGED PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

     

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        11

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
Borrower has executed this Note as of the date set forth above.

    

    Exhibit

    Exhibit A
– Notice of Conversion

    

     

    
      
        	 	
                HELIX
      WIND, CORP.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Scott
      Weinbrandt	 
	 	 	Name:
      Scott Weinbrandt	 
	 	 	Title:   Chief
      Executive Officer	 
	 	 	 	 

      

    ACKNOWLEDGED,
ACCEPTED AND AGREED:

    

     

    
      
        	
                ST.
      GEORGE INVESTMENTS, LLC

              	 
	 	 	 
	
                By:
      

              	/s/ John
      M. Fife	 
	 	Name:
      John M. Fife 	 
	 	Title:
      Manager 	 
	 	 	 

      

    
       

       

       

      [Signature
page to Convertible Promissory Note]helix_8k-ex1005.htm

    
      
        

      
Exhibit 10.5

    
 

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

    

    HELIX
WIND, CORP.

    

    WARRANT
TO PURCHASE SHARES OF COMMON STOCK

    

    1.            Issuance. In
consideration of good and valuable consideration as set forth in the Purchase
Agreement (defined below), including without limitation the applicable
Additional Net Purchase Price (as defined in the Purchase Agreement), the
receipt and sufficiency of which is hereby acknowledged by Helix Wind, Corp., a
Nevada corporation (the “Company”),
St. George Investments, LLC, an Illinois limited liability company, its
successors or registered assigns (the “Holder”),
is hereby granted the right to purchase at any time on or after the Issue Date
(as defined below) until the date which is the last calendar day of the month in
which the fifth anniversary of the Issue Date occurs (the “Expiration
Date”), up to 250,000 fully paid and nonassessable shares of the
Company’s common stock, par value $0.0001 per share (the “Common
Stock”) at the Exercise Price (as defined below). This Warrant to
Purchase Shares of Common Stock (this “Warrant”)
is being issued pursuant to the terms of that certain Note and Warrant Purchase
Agreement dated as of March 30, 2010 (the “Purchase
Agreement”), to which the Company and the Holder (or the Holder’s
predecessor in interest) are parties.

    

    Unless
otherwise indicated herein, capitalized terms not otherwise defined herein shall
have the meanings ascribed to them in the Purchase Agreement.

    

    This
Warrant was originally issued to the Holder or the Holder’s predecessor in
interest on May 1, 2010 (the “Issue
Date”).

    

    2.           Exercise of
Warrants.

    

    2.1           General.

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

    

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

    

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

    

    “Adjusted Price of
the Common Stock” shall mean the Conversion Price, as defined in that
certain Convertible Promissory Note issued by the Company in favor of the Holder
on even date herewith, in effect on any relevant Exercise Date.

    

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

    

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

    

    “Exercise
Price” shall mean $0.75 per share of Common Stock.

    

    “Market Price of
the Common Stock” shall mean the higher of: (i) the Closing Price of the
Common Stock on the Issue Date; or (ii) the VWAP of the Common Stock for the
Trading Day that is two Trading Days prior to the Exercise Date.

    

    “VWAP”
shall mean the volume-weighted average price of the Common Stock on the
Principal Trading Market for a particular Trading Day or set of Trading Days, as
the case may be, as reported by Bloomberg.

    

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

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

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

    

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

    

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

    

    2.2             Ownership Limitation.
Notwithstanding the provisions of this Warrant, in no event shall the this
Warrant be exercisable to the extent that the issuance of Common Stock upon the
exercise thereof, after taking into account the Common Stock then owned by the
Holder and its affiliates, would result in the beneficial ownership by the
Holder and its affiliates of more than 9.99% of the outstanding Common Stock of
the Company (the “9.99%
Cap”); provided
that such restriction shall apply only for so long as the 9.99% Cap would
be exceeded by an exercise hereunder.  For purposes of this Section,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended.

    

    3.             
 Mutilation or
Loss of Warrant. Upon receipt by the Company of evidence satisfactory to
it of the loss, theft, destruction or mutilation of this Warrant; and in the
case of loss, theft or destruction, receipt of reasonably satisfactory
indemnification; and in the case of mutilation, upon surrender and cancellation
of this Warrant, the Company will execute and deliver a new Warrant of like
tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall
thereupon become void.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.        
    Rights of the Holder.
The Holder shall not, by virtue of this Warrant alone, be entitled to any rights
of a stockholder in the Company, either at law or in equity, and the rights of
the Holder are limited to those expressed in this Warrant and are not
enforceable against the Company except to the extent set forth
herein.

    

    5.           
 Protection
Against Dilution and Other Adjustments.

    

    5.1           Capital
Adjustments.  If the Company shall at any time prior to the
expiration of this Warrant subdivide the Common Stock, by split-up or stock
split, or otherwise, or combine its Common Stock, or issue additional shares of
its Common Stock as a dividend, the number of Warrant Shares issuable on the
exercise of this Warrant shall forthwith be automatically increased
proportionately in the case of a subdivision, split or stock dividend, or
proportionately decreased in the case of a combination.  Appropriate
adjustments shall also be made to the purchase price payable per Warrant Share,
but the aggregate purchase price payable for the total number of Warrant Shares
purchasable under this Warrant (as adjusted) shall remain the
same.  Any adjustment under this Section 5.1 shall become
effective automatically at the close of business on the date the subdivision or
combination becomes effective, or as of the record date of such dividend, or in
the event that no record date is fixed, upon the making of such
dividend.

    

    5.2           Reclassification,
Reorganization and Consolidation.  In case of any
reclassification, capital reorganization, or change in the capital stock of the
Company (other than as a result of a subdivision, combination, or stock dividend
provided for in Section 5.1 above), then the Company shall make appropriate
provision so that the Holder shall have the right at any time prior to the
expiration of this Warrant to purchase, at a total price equal to that payable
upon the exercise of this Warrant, the kind and amount of shares of stock and
other securities and property receivable in connection with such
reclassification, reorganization, or change by a holder of the same number of
shares of Common Stock as were purchasable by the Holder immediately prior to
such reclassification, reorganization, or change.  In any such case
appropriate provisions shall be made with respect to the rights and interest of
the Holder so that the provisions hereof shall thereafter be applicable with
respect to any shares of stock or other securities and property deliverable upon
exercise hereof, and appropriate adjustments shall be made to the purchase price
per Warrant Share payable hereunder, provided the aggregate purchase price shall
remain the same.

    

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

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    5.4           Computation of Adjusted
Exercise Price. Commencing on the Issue Date and continuing until this
Warrant is either exercised in full or expires, in case the Company shall at any
time after the date hereof issue or sell any (a) shares of Common Stock or
preferred shares convertible into Common Stock, or (b) debt, warrants, options
or other instruments or securities which are convertible into or exercisable for
shares of Common Stock (together herein referred to as “Equity
Securities”), in each case for consideration (or with a conversion price)
per common share less than the Exercise Price in effect immediately prior to the
issuance or sale of such securities or instruments, or without consideration,
then forthwith upon such issuance or sale, the Exercise Price shall (until
another such issuance or sale) be automatically reduced to the price (calculated
to the nearest full cent) equal to the price (or conversion price) of any such
securities or instruments. For the purposes of this Section 5.4, the term
Exercise Price shall mean the Exercise Price per share set forth in Section 1
hereof, as adjusted from time to time pursuant to the provisions of this
Section. Promptly upon the occurrence of such an event, and in any event not
less than ten (10) business days after such an occurrence, the Company shall
notify the Holder in writing of the event, disclose to the Holder the new
Exercise Price, and provide to the Holder copies of all relevant documents
related to such event, even if the event was or should be disclosed
publicly.

     

    6.         
   Certificate as to
Adjustments. In each case of any adjustment or readjustment in the shares
of Common Stock issuable on the exercise of the Warrants, the Company at its
expense will promptly cause its Chief Financial Officer or other appropriate
designee to compute such adjustment or readjustment in accordance with the terms
of the Warrant and prepare a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based, including a statement of (a) the consideration received
or receivable by the Company for any additional shares of Common Stock issued or
sold or deemed to have been issued or sold, (b) the number of shares of Common
Stock outstanding or deemed to be outstanding, and (c) the Exercise Price and
the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the Holder of the Warrant and any
Warrant Agent of the Company (appointed pursuant to Section 8
hereof).

    

    7.           
 Transfer to
Comply with the Securities Act. This Warrant has not yet been registered
under the 1933 Act. Neither this Warrant nor any of the Warrant Shares or any
other security issued or issuable upon exercise of this Warrant may be sold,
transferred, pledged or hypothecated without (a) an effective registration
statement under the 1933 Act relating to such security, which the Company has
agreed to file pursuant to the terms and conditions of the Purchase Agreement,
after which all such securities may be sold in accordance with such effective
registration statement, or (b) an opinion of counsel reasonably satisfactory to
the Company that registration is not required under the Act. Until such time as
registration has occurred under the 1933 Act, each certificate for the Warrant,
the Warrant Shares and any other security issued or issuable upon exercise of
this Warrant shall contain a legend, in form and substance satisfactory to
counsel for the Company, setting forth the restrictions on transfer contained in
this Section.  Any such transfer shall be accompanied by a transferor
assignment substantially in the form of Exhibit
B (the “Transferor
Assignment”), executed by the transferor and the transferee and submitted
to the Company.  Upon receipt of the duly executed Transferor
Assignment, the Company shall register the transferee thereon as the new Holder
on the books and records of the Company and such transferee shall be deemed a
“registered holder” or “registered assign” for all purposes hereunder, and shall
have all the rights of the Holder hereof.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

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

    

    9.         
  Transfer
on the Company’s Books. Until this Warrant is transferred on the books of
the Company, the Company may treat the registered holder hereof as the absolute
owner hereof for all purposes, notwithstanding any notice to the
contrary.

    

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

    

    11.      
    Supplements and Amendments;
Whole Agreement. This Warrant may be amended or supplemented only by
an instrument in writing signed by the parties hereto. This Warrant contains the
full understanding of the parties hereto with respect to the subject matter
hereof and thereof and there are no representations, warranties, agreements or
understandings other than expressly contained herein and therein.

    

    12.           Governing
Law.  This Warrant shall be governed by, and construed in
accordance with, the internal laws of the State of Illinois, without reference
to the choice of law provisions thereof. The Company and, by accepting this
Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of
the courts of the State of Illinois located in Cook County and any United States
District Court for the Northern District of Illinois for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Warrant
and the transactions contemplated hereby. Service of process in connection with
any such suit, action or proceeding may be served on each party hereto anywhere
in the world by the same methods as are specified for the giving of notices
under this Warrant.  The Company and, by accepting this Warrant, the
Holder, each irrevocably consents to the jurisdiction of any such court in any
such suit, action or proceeding and to the laying of venue in such court. The
Company and, by accepting this Warrant, the Holder, each irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought
in such courts and irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient
forum.

    

    13.           Remedies. The Company
stipulates that the remedies at law of the Holder of this Warrant in the event
of any default or threatened default by the Company in the performance of or
compliance with any of the terms of this Warrant are not and will not be
adequate and that, without limiting any other remedies available to the Holder,
to the fullest extent permitted by law, such terms may be specifically enforced
by a decree for the specific performance of any agreement contained herein or by
an injunction against a violation of any of the terms hereof or
otherwise.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

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

    

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

    

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        7

        
          

        

      

      
         

      

    

     

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

    

    Dated:
May 1, 2010

    
       

      
        
          	 	
                  HELIX
      WIND, CORP.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Scott
      Weinbrandt	 
	 	 	
                  Name:
      Scott Weinbrandt

                	 
	 	 	
                  Title:
      Chief Executive Officer

                	 
	 	 	 	 

        

    

    

     

     

    [Signature
page to Warrant]

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