1. Identification .
This Security Agreement (the “ Agreement ”), dated as of February ___ , 2010, is entered into by and
among Glen Rose Petroleum Corporation, a Delaware corporation (“ Parent ”), and the entities identified on
Schedule 1 hereto (each a “ Guarantor ” and together with Parent, each a “ Debtor ” and collectively the “
Debtors ”), the Subscribers identified on Schedule 2 hereto (the “ Subscribers ”), who are parties to the
Subscription Agreement dated as of February ___ , 2010 (the “ Sub scription Agreement ”), by and among
Parent, and such Subscribers, and Iroquois Capital Opportunity Fund, LP (“ Collateral Agent ”).
2. Recitals .
2.1 At or about the date hereof, each of the Subscribers is making a loan (the “ Loan ”) to
Parent. Guarantor is a direct or indirect Subsidiary (as defined in Section 6.12 hereof) of Parent. It is beneficial
to each Debtor that the Loan is made. Guarantor has delivered or will deliver a “Guaranty” of Parent’s
obligations to Subscribers.
2.2 The Loan will be evidenced by one or more promissory notes (each a “ Note ”) issued by
Parent on or about the date of this Agreement pursuant to the Subscription Agreement. The Note was or will be
executed by Parent as “ Borrower ” or “ Debtor ” for the benefit of each Subscriber as the “ Holder ” or “
Subscriber ” thereof.
2.3 In consideration of the Loans made and to be made by Subscribers to Parent and for other
good and valuable consideration, and as security for the performance by Parent of its obligations under the Note,
by Guarantor of its obligations under the Guaranty, and as security for the repayment of the Loan and all other
sums due from Debtor to Subscribers arising under the Transaction Documents (as defined in the Subscription
Agreement) and any other agreement between or among them (collectively, the “ Obligations ”), each Debtor,
for good and valuable consideration, receipt of which is acknowledge