Document:

gihcexhibit108111809.htm

     

    
      

      

    

    Exhibit
10.8
 

    NOTE
AND WARRANT PURCHASE AGREEMENT

     

    THIS NOTE
AND WARRANT PURCHASE AGREEMENT (“Agreement”) is made and entered into on
November __, 2009, by and between Green Irons Holdings Corp., a Nevada
corporation (the “Company”), and _______________________ (the
“Lender”).

     

    WHEREAS,
in exchange for a loan from the Lender, the Company will issue a Senior Secured
Convertible Promissory Note, in the form attached hereto as Exhibit A
(the “Note”) and Warrants to purchase shares of common stock of the Company in
the form attached hereto as Exhibit B
(the “Warrants”).

     

    WHEREAS,
in connection with the issuance of the Note and the Warrants, the Company and
the Lender will enter into (i) a Security Agreement, in the form attached hereto
as Exhibit C
(the “Security Agreement”) which shall secure the performance of the obligations
of the Company hereunder and (ii) a Registration Rights Agreement, in the form
attached hereto as Exhibit D
(the “Registration Rights Agreement”) pursuant to which the Company shall agree
to register the shares of the Company’s common stock issuable pursuant to the
Note and the Warrants.

     

    WHEREAS,
post-delivery of the First Installment (as defined below) and prior to any
future installments, the Company  intends effectuate a thirty-for-one
split (the “Stock Split”) of the authorized number of shares of its common stock
and all of its then-issued and outstanding common stock, par value $0.001 per
share.

     

    NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants
hereinafter set forth, the parties hereby agree as follows:

     

    1.   Amount
and Terms of the Note; Terms of Warrant

     

    1.1   Promissory
Note and Warrant.  Subject to the conditions and on the terms
of this Section 1.1, the Lender will lend up to Two Million Dollars ($2,000,000)
to the Company in multiple installments in exchange for a Note and Warrants in
the amount of each installment. The first installment of Three Hundred Thirty
Four Thousand Nine Hundred Five Dollars ($334,905) (“First Installment”) shall
be delivered to the Company upon the execution of this Agreement. The Company
shall issue 334,905 Warrants to the Lender in connection with that First
Installment. Post-Stock Split, the Lender shall lend additional installments to
the Company in amounts as requested by the Company; provided however, that the
Company shall provide the proposed use of proceeds for each requested amount.
Each proposed use of proceeds for each requested amount shall specify that the
majority of the proceeds shall be used for the acquisition of low risk oil and
gas rights in geographic regions with stable governments. The Lender shall have
sole discretion in determining whether the proposed use of proceeds meets those
requirements.  The Company and Lender acknowledge and agree that the
Note and Warrants issued in exchange for the First Installment will not be
affected by the Stock Split and any future installments shall be treated on a
post-Stock Split basis.

     

    
      
        
        

      

      
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    1.2   Closing.  The
initial closing (the “Initial Closing”) of the purchase of the Note and Warrants
in return for the First Installment shall take place at the offices of the
Company on the date and time when this Agreement has been signed by both
parties.  At the Initial Closing, the Lender shall deliver the First
Installment to the Company and the Company shall deliver to the Lender an
executed Note and Warrants in return for the consideration provided to the
Company. Each subsequent closing of the purchase of the Note and Warrants in
return for each of the four subsequent installments shall take place at the
offices of the Company within ten (10) days after the occurrence of the event
that triggers that next installment as specified above. Upon receipt of each
subsequent installment by the Company, the Company shall deliver to the Lender
an executed Note and Warrants in return for the installment provided to the
Company.

     

    2.   Representations
and Warranties of the Company.  In connection with the
transactions provided for herein, the Company hereby represents and warrants to
the Lender that:

     

    2.1   Organization,
Good Standing, and Qualification.  The Company is a corporation
duly organized, validly existing, and in good standing under the laws of the
State of Nevada and has all requisite corporate power and authority to carry on
its business as now conducted and as proposed to be conducted.

     

    2.2   Authorization.  The
Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by the Agreement and otherwise to carry
out its obligations hereunder.  The execution and delivery of the
Agreement by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the
part of the Company and no further action is required by the Company, its board
of directors or its shareholders in connection therewith.

     

    3.   Representations
and Warranties of the Lender.  In connection with the
transactions provided for herein, the Lender hereby represents and warrants to
the Company that:

     

    3.1   Authorization.  This
Agreement constitutes the Lender’s valid and legally binding obligation,
enforceable in accordance with its terms. Lender represents that it has full
power and authority to enter into and to consummate the transactions
contemplated by the Agreement and otherwise to carry out its obligations
hereunder.

     

    3.2   Purchase
Entirely for Own Account.  Lender acknowledges that this
Agreement is made with Lender in reliance upon Lender’s representation to the
Company that the Note, the Warrants and the securities issuable upon exercise of
the Warrants and conversion of the Note (collectively, the “Securities”) will be
acquired for investment for Lender’s own account, not as a nominee or agent, and
not with a view to the resale or distribution of any part thereof, and that
Lender has no present intention of selling, granting any participation in, or
otherwise distributing the same.  By executing this Agreement, Lender
further represents that Lender does not have any contract, undertaking,
agreement, or arrangement with any person to sell, transfer, or grant
participation to such person or to any third person, with respect to the
Securities.

     

    3.3  Disclosure
of Information.  Lender acknowledges that it has received all
the information it considers necessary or appropriate for deciding whether to
acquire the Securities.  Lender further represents that it has had an
opportunity to ask questions and receive answers from the Company regarding the
terms and conditions of the offering of the Securities.

     

    
      
        
        

      

      
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    3.4   Investment
Experience.  Lender is an investor in securities of companies
in the development stage and acknowledges that it can bear the economic risk of
its investment, is able to afford a complete loss of such investment, and has
such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment in the
Securities.  Lender also represents it has not been organized solely
for the purpose of acquiring the Securities.

     

    3.5   Regulation
S. The Lender is a corporation that (i) is not organized or incorporated
under the laws of the United States; (ii) is not acquiring the Securities for
the account of any U.S. person; (iii) has no director or executive officer who
is a national or citizen of the United States; and (is) is not otherwise deemed
to be a “U.S. Person” within the meaning of Regulation S.

     

    3.6   Restricted
Securities.  Lender understands that the Securities are
characterized as “restricted securities” under the federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering based upon the exemption from such registration
requirements for non-public offerings pursuant to Regulation S under the Act;
and that such Securities may not be sold or otherwise transferred unless they
have been first registered under the Act and all applicable state securities
laws, or unless exemptions from such registration provisions are available with
respect to said resale or transfer of such securities. In this connection,
Lender represents that it is familiar with SEC Rule 144, as presently in effect,
and understands the resale limitations imposed thereby and by the
Act.

     

    3.7   Further
Limitations on Disposition.  Without in any way limiting the
representations set forth above, Lender further agrees not to make any
disposition of all or any portion of the Securities unless and until the
transferee has agreed in writing for the benefit of the Company to be bound by
this Section 3 and:

     

    (a) There is
then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with such registration
statement; or

     

    (b) (i)      Lender
shall have notified the Company of the proposed disposition and shall have
furnished the Company with a detailed statement of the circumstances surrounding
the proposed disposition, and (ii) Lender shall have furnished the Company with
an opinion of counsel, satisfactory to the Company that such disposition will
not require registration of such shares under the Act.

     

    3.8   Legends.  Lender
understands that the Securities will bear a legend in substantially the
following form:

     

    “THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED,
OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT
TO RULE 144 UNDER SUCH ACT.”

     

    
      
        
        

      

      
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    3.9           No
Review. Lender understands that no federal or state agency has approved
or disapproved the Securities, passed upon or endorsed the merits of the
Company’s offering, or made any finding or determination as to the
appropriateness of the Securities for investment.

     

    4.    Miscellaneous.

     

    4.1   Successors
and Assigns.  Except as otherwise provided herein, the terms
and conditions of this Agreement shall inure to the benefit of and be binding
upon the respective successors and assigns of the parties.  Nothing in
this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

     

    4.2   Governing
Law.  This Agreement shall be governed by and construed under
the laws of the State of Nevada, excluding that body of law relating to conflict
of laws.

     

    4.3   Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    4.4   Titles
and Subtitles.  The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

     

    4.5   Notices.  Unless
otherwise provided, any notice required or permitted under this Agreement shall
be given in writing and shall be deemed effectively given upon personal delivery
to the party to be notified or upon deposit with the United States Post Office,
by registered or certified mail, postage prepaid and addressed to such party at
the address set forth on the signature page hereto.

     

    4.6   Finder’s
Fee.  Each party represents that it neither is nor will be
obligated for any finder’s fee or commission in connection with this
transaction.

     

    4.7   Entire
Agreement; Amendments and Waivers.  This Agreement, the Note,
the Warrants, the Security Agreement and the Registration Rights Agreement,
constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof and thereof.  Any term of the
Agreement may be amended and the observance of any term of the Agreement may be
waived (either generally or in a particular instance and either retroactively or
prospectively), with the written consent of the Company and the
Holder.

     

    4.8   Severability.  If
one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so
excluded and shall be enforceable in accordance with its terms.

     

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties have executed this Agreement on the date in the
preamble of this Agreement.

     

    
      	
              LENDER

               

               

              By:                             

              Name:                                          

              Its:                                 

               

                                        

              (Address)

               

            	
              COMPANY

              Green
      Irons Holding Corp.

               

               

              By:           /s/ Philip
      Mann         

              Name:      Philip
      Mann

              Its:           Chief
      Financial Officer

               

              10497
      Town and Country Way, Suite 310 

              Houston,
      Texas 77024

            
	 
      	 
      

    

     

     

     5gihcexhibit109111809.htm

    
      

      

    

    Exhibit
10.9

    
 

    THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  IT
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A
REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITY UNDER SUCH ACT OR
AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.

     

    GREEN
IRONS HOLDINGS CORP.

     

     

    SENIOR
SECURED CONVERTIBLE PROMISSORY NOTE

     

     

    $334,905.00                                                                                 Houston, Houston,
Texas

    Dated as
of November __, 2009

     

    Green Irons Holdings
Corp., a Nevada corporation (the “Company”),
for value received, hereby promises to pay to ___________________, or its
registered assigns (“Holder”),
the sum of Three Hundred Thirty Four Thousand Nine Hundred Five Dollars
($334,905) on the terms and conditions set forth in this Senior Secured
Convertible Promissory Note (the “Note”).  Payment
for all amounts due hereunder shall be made by mail to the registered address of
Holder. The performance of the obligations of the Company hereunder are secured
in accordance with the terms of a Security Agreement of even date herewith and
all other present and future security agreements between the Company and Holder.
In connection with the issuance of the Note, the Company will issue warrants
(the “Warrants”)
to purchase shares of the Company’s $.001 par value common stock (the “Common
Stock”).

     

    The following is a
statement of the rights of Holder of this Note and the conditions to which this
Note is subject, and to which Holder hereof, by the acceptance of this Note,
agrees:

     

    1.           Maturity;
Partial Prepayment.  The principal hereof and any unpaid
accrued interest hereon, as set forth below, shall be due and payable on the
earlier to occur of:  (i) November 18, 2012 (“Maturity
Date”); and (ii) when declared due and payable by Holder upon the
occurrence of an Event of Default (as defined below).

     

     

    2.           Interest.  The
Company shall pay interest at the rate of the lower
of (i) eight percent (8%) per annum; or (ii) the maximum allowable rate under
applicable laws (such rate, the “Interest
Rate”) on the principal of this Note outstanding during the period
beginning on the date of this Note and ending on the date that the principal
amount of this Note is repaid in full.  Interest shall be calculated
on the basis of a 360-day year for the actual number of days
elapsed.  Interest accruing on this Note shall be due and payable at
the Maturity Date or upon the occurrence of an Event of Default.  The
Company shall pay the interest due on this Note by delivering to Holder
cash.  All payments hereunder are to be applied first to reasonable
costs and fees referred to herein, second to the payment of accrued interest,
and the remaining balance to the payment of principal.

     

     

    
      
        
        

      

      
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    3.           Events
of Default.  If any of the events specified in this Section 3
shall occur (herein individually referred to as an “Event
of Default”), Holder may, so long as such condition exists, declare the
entire principal and unpaid accrued interest hereon immediately due and payable,
by notice in writing to the Company:

     

    (a)           Default
in the payment of the principal or unpaid accrued interest of this Note when due
and payable, which default is not cured within ten (10) days after the Holder
has given the
Company written notice thereof;

     

    (b)           A
material breach of any representation, warranty, or covenant under this Note,
which failure or default is not cured within ten (10) days after the Holder has
given the
Company written notice thereof;

     

    (c)           The
institution by the Company of proceedings to be adjudicated as bankrupt or
insolvent, or the consent by it to institution of bankruptcy or insolvency
proceedings against it or the filing by it of a petition or answer or consent
seeking reorganization or release under the Federal Bankruptcy Act, or any other
applicable Federal or state law, or the consent by it to the filing of any such
petition or the appointment of a receiver, liquidator, assignee, trustee or
other similar official of the Company, or of any substantial part of its
property, or the making by it of an assignment for the benefit of creditors, or
the taking of corporate action by the Company in furtherance of any such
action;

     

    (d)           If,
within 60 calendar days after the commencement of an action against the Company,
without the consent or acquiescence of the Company (and service of process in
connection therewith on the Company) seeking any bankruptcy, insolvency,
reorganization, liquidation, dissolution or similar relief under any present or
future statute, law or regulation, such action shall not have been resolved in
favor of the Company or all orders or proceedings thereunder affecting the
operations or the business of the Company stayed, or if the stay of any such
order or proceeding shall thereafter be set aside, or if, within 60 calendar
days after the appointment without the consent or acquiescence of the Company of
any trustee, receiver or liquidator of the Company or of all or any substantial
part of the properties of the Company, such appointment shall not have been
vacated;

     

    (e)           If
a judgment or judgments or order for the payment of money in excess of $50,000
in the aggregate shall be rendered against the Company and the same shall not,
within thirty (30) days after the entry thereof, have been discharged or
execution thereof stayed or bonded pending appeal (even if not fully covered by
insurance) or unless such judgment is fully covered by collectible insurance and
such insurer has within such period acknowledged such coverage in
writing;

     

    (f)           Any
material breach of the Security Agreement between the parties of even date
herewith that remains uncured after notice of breach and failure to timely cure
such breach; or

     

    (g)           The
Company shall fail to maintain the listing of its Common Stock on at least one
of the OTC
Bulletin Board or an equivalent replacement exchange, NASDAQ
Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New
York Stock Exchange, or the American Stock Exchange,
LLC.

     

    
      
        
        

      

      
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    4.           Holder’s
Rights Upon Event of Default.  Upon the occurrence and
continuance of any Event of Default, Holder in its sole and absolute discretion
shall have the right to:

     

    (i)           convert
all of the principal amount and unpaid accrued interest attributable to this
Note into shares of Common Stock at a conversion price of $0.25 per
share;

     

    (ii)           declare
all unpaid interest and principal immediately due and payable and exercise all
other legal rights in connection therewith, without presentment, demand, or
protest, all of which
are hereby expressly waived; or

     

    (iii)           in
case any one or more Events of Default shall occur and be continuing and
acceleration of the Note or any other indebtedness of the Company to Holder
shall have occurred, Holder may, among other things, proceed to protect and
enforce its rights by an action at law, suit in equity or other appropriate
proceeding, whether for the specific performance of any agreement contained
herein, or for an injunction against a violation of any of the terms hereof or
thereof or in and of the exercise of any power granted hereby or thereby or by
law. No right conferred upon Holder hereby shall be exclusive of any other right
referred to herein or therein or now or hereafter available at law, in equity,
by statute or otherwise.

     

    5.           Conversion;
Optional Reinvestment.

     

    (a)           Optional
Conversion.  Holder, at its sole discretion, may elect to
convert the outstanding principal balance and unpaid accrued interest on this
Note into shares of Common Stock at any time; provided, however, that in no
event shall the Holder be entitled to convert any portion of this Note in excess
of that portion of this Note upon conversion of which the sum of (1) the number
of shares of Common Stock beneficially owned by the Holder and its affiliates
(other than shares of Common Stock which may be deemed beneficially owned
through the ownership of the unconverted portion of the Note or the unexercised
or unconverted portion of any other security of the Company (including, without
limitation, the Warrants issued by the Borrower) subject to a limitation on
conversion or exercise analogous to the limitations contained herein) and (2)
the number of shares of Common Stock issuable upon the conversion of the portion
of this Note with respect to which the determination of this proviso is being
made, would result in beneficial ownership by the Holder and its affiliates of
more than 4.99% of the outstanding shares of Common Stock. For purposes of the
proviso 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 Regulations 13D-G thereunder, except as otherwise provided
in clause (1) of such proviso. The Holder of this Note may waive the limitations
set forth herein by sixty-one (61) days written notice to the Company. The
number of shares of Common Stock to be issued upon such conversion shall be
equal to the quotient obtained by dividing (a) the outstanding principal and
unpaid accrued interest due on this Note on the date of conversion, by (b) the
conversion price of $0.50 per share (“Conversion Price”). The Common Stock
received by Holder pursuant to the conversion of the Note shall be referred to
as the “Conversion
Shares.”

     

    (b)           Identical
Terms.  The Common Stock received by Holder pursuant to the
conversion of the Note hereunder shall have identical rights, preferences and
privileges as those shares of Common Stock currently held by stockholders in the
Company.

     

    
      
        
        

      

      
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    (c)           Conversion
Procedure.  If this Note is to be converted, written notice
shall be delivered by Holder to the Company, notifying the Company of the
conversion to be effected, specifying the principal amount of the Note to be
converted, the amount of accrued interest to be converted. Holder will surrender
this Note within 10 business days after receiving the Conversion Shares
hereunder.  Promptly upon receipt of this Note, the Company will issue
a new note on the same terms as provided herein for any amount of this Note not
being converted.

     

    (d)           Delivery
of Stock Certificates.  As promptly as practicable after the
conversion of this Note but in no event later than fifteen (15) calendar days
after the date of delivery of the notice to the Company under Section 5(c), the
Company at its expense will issue and deliver to Holder a certificate or
certificates for the number of full shares of the Common Stock issuable upon
such conversion.  Upon conversion of the Note, the Company shall take
all such actions as are necessary in order to insure that the Conversion Shares
issuable with respect to such conversion shall be validly issued, fully paid and
nonassessable.

     

    (e)           Mechanics
and Effect of Conversion.  No fractional shares of Common Stock
shall be issued upon conversion of this Note.  In lieu of the Company
issuing any fractional shares to Holder upon the conversion of this Note, the
Company shall pay to Holder the amount of outstanding principal and interest
that is not so converted, such payment to be in the form as provided
below.  Upon conversion of this Note, the Company shall be forever
released from all of its obligations and liabilities under this Note (to the
extent of the amounts converted), except that the Company shall be obligated to
pay Holder, within 10 business days after the date of such conversion, any
interest accrued and unpaid or unconverted to and including the date of such
conversion, and no more.

     

    (f)           Notices
of Record Date, etc.  In the event of:

     

    (i)           any
taking by the Company of a record of holders of any class of securities of the
Company for the purpose of determining holders thereof who are entitled to
receive any dividend (other than a cash dividend payable out of earned surplus
at the same rate as that of the last such cash dividend theretofore paid) or
other distribution, or any right to subscribe for, purchase or otherwise acquire
any shares of stock of any class or any other securities or property, or to
receive any other right;

     

     

    (ii)           any
capital reorganization of the Company, any reclassification or recapitalization
of the capital stock of the Company or any transfer of all or substantially all
of the assets of the Company to any other person or any consolidation or merger
involving the Company; or

     

     

    (iii)           any
voluntary or involuntary dissolution, liquidation or winding-up of the
Company;

     

    
      
        
        

      

      
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    the
Company will mail to Holder at least 20 calendar days prior to the earliest date
specified therein, a notice specifying:

     

    (A)           The
date on which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right; and

     

    (B)           The
date on which any such reorganization, reclassification, transfer,
consolidation, merger, dissolution, liquidation or winding-up is expected to
become effective and the record date for determining stockholders entitled to
vote thereon.

     

    (g)           Reservation
of Stock Issuable Upon Conversion.  The Company shall, before
the conversion of this Note into Common Stock pursuant to the terms set forth
herein, increase the number of authorized but unissued shares of Common Stock as
necessary, and at all times reserve and keep available out of such duly
authorized but unissued shares of Common Stock, such number of its duly
authorized Common Stock as shall be sufficient to effect the conversion of the
Note pursuant to the terms set forth herein.  If at any relevant time
the number of authorized but unissued shares of Common Stock shall not be
sufficient to effect the conversion of the entire outstanding principal amount
of this Note, in addition to such other remedies as shall be available to
Holder, the Company will use its best efforts to forthwith take such corporate
action as may be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such
purposes.

     

    (h)           Effect
of Certain Events on the Conversion Price.  In the event that
the Company shall (a) issue additional shares of Common Stock as a dividend
or other distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of Common Stock
into a smaller number of shares of Common Stock, then, in each such event, the
Conversion Price shall, simultaneously with the happening of such event, be
adjusted by multiplying the then Conversion Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately
prior to such event and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after such event, and the product so
obtained shall thereafter be the Conversion Price then in effect. The Conversion
Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described herein in this Section
5(h).  If, at any time when this Note is issued and outstanding, the
Company issues or sells, or in accordance with this Section 5(h) hereof is
deemed to have issued or sold, any shares of Common Stock for no consideration
or for a consideration per share (before deduction of reasonable expenses or
commissions or underwriting discounts or allowances in connection therewith)
less than the Conversion Price in effect on the date of such issuance (or deemed
issuance) of such shares of Common Stock (a “Dilutive Issuance”), then
immediately upon the Dilutive Issuance, the Conversion Price will be reduced to
the amount of the consideration per share received by the Company in such
Dilutive Issuance; provided that only one adjustment will be made for each
Dilutive Issuance.

     

    For the
purposes of this Section 5(h), the Company shall be deemed to have issued or
sold shares of Common Stock if the Company in any manner issues or grants any
warrants, rights or options, whether or not immediately exercisable, to
subscribe for or to purchase Common Stock or other securities convertible into
or exchangeable for Common Stock (“Convertible Securities”) (such warrants,
rights and options to purchase Common Stock or Convertible Securities are
hereinafter referred to as “Options”) and the price per share for which Common
Stock is issuable upon the exercise of such Options is less than the Conversion
Price then in effect, then the Conversion Price shall be equal to such price per
share.

     

    
      
        
        

      

      
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    (i)           Notice
of Adjustments. Upon the occurrence of each adjustment or readjustment of
the Conversion Price as a result of the events described in Section 5(h), the
Company, at its expense, shall promptly compute such adjustment or readjustment
and prepare and furnish to the Holder of a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Company shall, upon the written request
at any time of the Holder, furnish to such Holder a like certificate setting
forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time
in effect and (iii) the number of shares of Common Stock and the amount, if any,
of other securities or property which at the time would be received upon
conversion of this Note.

     

    6.           Prepayment.  Upon
ten (10) calendar days’ prior written notice to Holder, the Company may at any
time prepay in whole or in part, the principal sum, plus accrued interest to
date of such prepayment, of this Note; provided that, after the date of such
notice and prior to the proposed prepayment date, Holder may elect to convert
such amounts into shares of Common Stock of the Company at the Conversion Price
pursuant to Section 5.

     

               7.           Subscription
Rights.  So long as this Note is outstanding, Holder shall have
the right to participate on a pro rata basis in any offering of the Company’s
securities on the same terms and conditions as the other subscribers to such
offering.

     

    8.           Representations
and Warranties. The Company hereby represents and
warrants:

     

     

    (a)           Due
Organization and Qualification.  The Company is an entity duly
incorporated or otherwise organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization (as
applicable), with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.  The Company is in no violation or default of any of the
provisions of its respective certificate or articles of incorporation, bylaws or
other organizational or charter documents.  The Company is duly
qualified to conduct business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be,
could not have or reasonably be expected to result in (i) a material adverse
effect on the legality, validity or enforceability of this Note, the Warrant or
the Security Agreement (the “Transaction
Documents”), (ii) a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise) of the
Company, or (iii) a material adverse effect on the Company’s ability to perform
in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and to the Company’s knowledge no proceeding has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking
to revoke, limit or curtail such power and authority or
qualification.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder.  The execution and delivery of each of the
Transaction Documents by the Company and the consummation by it of the
transactions contemplated thereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the
Company, its board of directors or its stockholders in connection
therewith.  Each Transaction Document has been (or upon delivery will
have been) duly executed by the Company and, when delivered in accordance with
the terms hereof and thereof, will constitute the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms
except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies.

     

    (c)           No
Conflicts.  The execution, delivery and performance of the
Transaction Documents by the Company, the issuance and sale of the securities
and the consummation by the Company of the other transactions contemplated
hereby and thereby do not and will not (i) conflict with or violate any
provision of the Company’s certificate or articles of incorporation, bylaws or
other organizational or charter documents, or (ii) conflict with or result in a
violation of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which the Company is
subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected.

     

    (d)           Litigation.  There
is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the
Company before or by any court, arbitrator, governmental or administrative
agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or
enforceability of any of the Transaction Documents or the securities or (ii)
could, if there were an unfavorable decision, have or reasonably be expected to
result in a Material Adverse Effect.  Neither the Company, nor any
director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under federal or state securities laws or a
claim of breach of fiduciary duty.

     

    9.           Successors
and Assigns; Assignment.  Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of
the parties hereto.  Nothing in this Note, express or implied, is
intended to confer upon any party, other than the parties hereto and their
successors and assigns, any rights, remedies, obligations or liabilities under
or by reason of this Note, except as expressly provided herein.  The
Company may not assign this Note or any of the rights or obligations referenced
herein without the prior written consent of Holder.

     

    10.           Waiver
and Amendment.  Any provision of this Note may be amended,
waived or modified upon the written consent of the Company and
Holder.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    11.           Waiver
of Notice.  The Company expressly waives presentment for
payment, protest and demand, notice of protest, demand and dishonor and
expressly agrees that this Note may be extended from time to time without in any
way affecting the liability of the Company.  No delay or omission on
the part of Holder in exercising any right hereunder shall operate as a waiver
of such right or of any other right under this Note.  The obligations
of the Company under this Note shall not be subject to reduction, limitation,
impairment, termination, defense, set-off, counterclaim or recoupment for any
reason.

     

    12.           Treatment
of Note.  To the extent permitted by generally accepted
accounting principles, the Company will treat, account and report the Note as
debt and not equity for accounting purposes and with respect to any returns
filed with Federal, state or local tax authorities.

     

    13.           Notices.  Any
notice, request or other communication required or permitted hereunder shall be
in writing and shall be deemed to have been duly given if personally delivered
or if sent by nationally recognized courier service or mailed by registered or
certified mail, postage prepaid, to the respective addresses of the parties as
set forth on the signature page hereof or if sent by facsimile to the respective
facsimile numbers of the parties set forth on the signature page
hereof.  Any party hereto may by notice so given change its address
for future notice hereunder.  Notice shall conclusively be deemed to
have been given and received when personally delivered or 3 business days after
deposited in the mail or one business day after sent by courier or upon
confirmation of facsimile delivery in the manner set forth
above.

     

    14.           No
Stockholder Rights.  Nothing contained in this Note shall be
construed as conferring upon Holder or any other person the right to vote or to
consent or to receive notice as a stockholder in respect of meetings of
stockholders for the election of directors of the Company or any other matters
or any rights whatsoever as a stockholder of the Company; and no dividends or
interest shall be payable or accrued in respect of this Note or the interest
represented hereby or the securities into which this Note is convertible
hereunder until, and only to the extent that, this Note shall have been
converted.

     

    15.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada, excluding that body of law
relating to conflict of laws.

     

    16.           Heading;
References.  All headings used herein are used for convenience
only and shall not be used to construe or interpret this Note.  Except
as otherwise indicated, all references herein to Sections refer to Sections
hereof.

     

    17.           Usury.  In
the event any interest is paid on this Note which is deemed to be in excess of
the then legal maximum rate, then that portion of the interest payment
representing an amount in excess of the then legal maximum rate shall be deemed
a payment of principal and applied against the principal of this
Note.

     

    18.           Attorney’s
and Collection Fees.  Should the indebtedness evidenced by this
Note or any part hereof be collected at law or in equity or in any bankruptcy,
receivership or other court proceedings, or this Note be placed in the hand of
attorneys for collection, the Company agrees to pay, in addition to principal
and Interest due and payable hereon, all costs of collection, including
reasonable attorneys’ fees and expenses, incurred by Holder in collecting or
enforcing this Note.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company has caused this Note to be issued as of the
date first written above.

     

    Green Irons Holdings
Corp.,

    a Nevada
corporation

     

     

     

     

    By:      /s/ Philip
Mann______________     

    Philip
Mann

         Its:        Chief
Financial Officer

     

    
      	
               
      

            	
              10497
      Town and Country Way, Suite 310

            

    

    
      	
               
      

            	
              Houston,
      Texas 77024

            

    

     

    Name of
Holder:          ____________________

     

    Address:                      ____________________

    ____________________

     

    Telephone:                   ____________________

    Facsimile:                     ____________________

     

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    NOTICE
OF CONVERSION

    (To be
Signed Only Upon Conversion of Note)

     

     

     

    To Green
Irons Holdings Corp.:

     

    The
undersigned, holder of the $____,000 Senior Secured Convertible Note of Green
Irons Holdings Corp., due _______________ (the “Note”), hereby agrees to
surrender the Note for conversion into ________________shares of Common Stock of
Green Irons Holdings Corp., to the extent of ________________________ dollars
($____________) unpaid principal amount of the Note, and________________________
dollars ($____________) unpaid accrued interest under the Note and requests that
the certificates for such shares be issued in the name of, and delivered to,
_________________________________________________, whose address is
_________________________________________________________.  Conversion
should be effected as of ___________________.

     

    Dated:       ____________________                            

     

     

     

      
                                          

    (signature must conform in
all respects to name

    of holder as specified on
the face of the Note)

     

    Address:

     

     

    10

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