Document:

f8k122309ex10i_cbt.htm

    Exhibit 10.1

     

    
      

      

      

      

      

      

      

      Purden
Lake Resource Corp.

      

      

      

      

      
        	
                 

                 

                SUBSCRIPTION
      DOCUMENTS

                 

                 

              

      

      

      

      

      

      

      

      

      

      

      

      

      

      

       
 

      

      

      

      

      October
23, 2009

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      PURDEN
LAKE RESOURCE CORP.

      

      SUBSCRIPTION
INSTRUCTIONS

      

      IMPORTANT:  PLEASE
READ THE ATTACHED SUBSCRIPTION AGREEMENT CAREFULLY BEFORE COMPLETING AND SIGNING
IT.  THERE ARE SIGNIFICANT REPRESENTATIONS CONTAINED IN THE
SUBSCRIPTION AGREEMENT.

      

      All subscribers must complete and
execute the documents contained in this booklet in accordance with the
instructions set forth below.  Any questions you may have concerning
these documents should be directed to Chris Stala, telephone (631) 851-0918 or
Owen May, telephone (212) 508-2100.

      

      INSTRUCTIONS

      

      1.           Fill in the requested
information and Sign the
Subscription Agreement.

      

      2.           Fill in the Investor
Information form attached as Annex
A to the Subscription Agreement.

      

      3.           Individual
Investors – Fill in and
Sign the Certificate for
Individual Investors attached as Annex
B to the Subscription Agreement.

      

      4.           Entity
Investors - Fill in and
Sign the Certificate for
Entity Investors attached as Annex
C to the Subscription Agreement.

      

      5.           Fax
all forms to Chris Stala at (631) 234-1311 and Owen May at (212) 508-2124 and
then Send all signed
original documents with a check (if applicable) to:

      

      
        	
                May Davis Partners,
      LLC

                800 Third Avenue, 9th
      Floor

                New York, New York
      10022

                Attention: Owen
    May

              	
                American
      Capital Partners, LLC

                205
      Oser Avenue

                Hauppauge,
      New York 11788

                Attention:
      Chris Stala

              

      

      

      6.           Please
make your subscription payment payable to the order of “SIGNATURE BANK – AS
ESCROW AGENT FOR PURDEN LAKE RESOURCE CORP.”

      

      To wire
funds directly see the following instructions:

      

      
        	 
      	
                Bank
      Name:

              	
                Signature
      Bank

              
	 
      	
                Bank
      Address:

              	
                261
      Madison Avenue, New York, New York 10016

              
	 
      	
                Acct.
      Name:

              	
                Signature
      Bank as Escrow Agent for Purden Lake Resource Corp.

              
	 
      	
                ABA
      Number:

              	
                026013576

              
	 
      	
                A/C
      Account #:

              	
                1501326425

              
	 
      	
                FBO:

              	
                Investor
      Name

              
	 
      	 
      	
                Social
      Security or EIN Number

              
	 
      	 
      	
                Address

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                 Each
investor who executes a Subscription Agreement and the other documents contained
in this package (individually an “Investor”
and collectively, the “Investors”)
will purchase the number of units (the “Units”)
of Purden Lake Resource Corp., a Delaware corporation (the “Company”)
set forth on the signature page to such Subscription Agreement at a purchase
price of $10,000 per Unit.  Each Unit consists of 3,937 shares of the
Company’s common stock, par value $0.001 per share (the “Common
Stock”) and a five (5) year warrant (a “Warrant”),
exercisable for the purchase of 514 shares of Common Stock.  The Units
are being offered by the Company, through May Davis Partners, LLC and American
Capital Partners LLC, as the exclusive co-placement agents (the “Co-Placement
Agents”), pursuant to the offering terms set forth in the Company’s
Confidential Private Placement Memorandum, dated October 23, 2009, as may be
amended and/or supplemented, from time to time (collectively, the “Memorandum”).

       
 

      The Units are being offered (the “Offering”)
on a “reasonable efforts all or none” basis up to 582 Units ($5,820,000) (the
“Minimum
Amount”) and thereafter on a “reasonable efforts” basis up to 1,147 Units
($11,470,000) (the “Maximum
Amount”), provided, however, that the
Company may, in its sole discretion, elect to accept additional subscriptions
for up to an additional 500 Units, or $5,000,000 (the “Over-Subscription
Allotment”).  The minimum investment amount that may be
purchased by an Investor is one Unit ($10,000) (the “Minimum
Investor Purchase”); provided however, the Company
and the Co-Placement Agents may in their mutual discretion, accept an Investor
subscription for an amount less than the Minimum Investor Purchase.

      

      The Offering is being made solely to
“accredited investors” (as defined in Rule 501 of Regulation D promulgated under
the Securities Act of 1933, as amended (the “Securities
Act”)).

      

      All subscription funds will be held in
a non-interest bearing escrow account at Signature Bank, 261 Madison Avenue, New
York, New York 10016.  The Offering will commence on the date of the
Memorandum and will continue through November 20, 2009 (the “Initial
Offering Period”), which period may be extended by the Company to a date
no later than December 21, 2009, unless otherwise further extended at the sole
discretion of the Company (the “Termination
Date”, with this additional period, together with the Initial Offering
Period, being referred to as the “Offering
Period”).  During the Offering Period, the Company may hold an
initial closing (the “Initial
Closing”) at any time after the Company has received and accepted
subscriptions equal to the Minimum Amount and the other conditions to the
Initial Closing have been satisfied, including, but not limited to, the closing
of a share exchange transaction (the “Merger”)
between the Company and Ingenious Paragon Global Limited, a British Virgin
Islands company.  After the Initial Closing, subsequent closings with
respect to additional Units may take place at any time, as determined jointly by
the Company and the Co-Placement Agents (each such closing, together with the
Initial Closing, being referred to as a “Closing”).  In
the event that a Closing is not held prior to the Termination Date, the Company
will refund all subscription funds, without deduction and/or interest accrued
thereon, and will return the subscription documents to each
subscriber.

       

      
        
          
          

        

        
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      In the event that the Company and the
Co-Placement Agents reject a subscription, either in whole or in part (which
decision is in their mutual discretion), the rejected subscription funds or the
rejected portion thereof will be returned promptly to such subscriber without
interest accrued thereon.

      

      The
Company and the Co-Placement Agents reserve the right (but are not obligated) to
purchase and/or have their respective employees, agents, officers, directors and
affiliates purchase Units in the Offering and all such purchases will be counted
towards the Minimum Amount and the Maximum Amount.

      

      The terms of the Offering and the
conditions to hold the Initial Closing are more completely described in the
Memorandum and such terms are incorporated herein in their
entirety.  Certain capitalized terms used, but not otherwise defined
herein, will have the respective meanings provided in the
Memorandum.

      

      Questions
regarding completion of the subscription documents should be directed to Chris
Stala at (631) 851-0918 or Owen May at (212) 508-2100.

      

      ALL
SUBSCRIPTION DOCUMENTS MUST BE FILLED IN AND SIGNED EXACTLY AS SET FORTH
WITHIN.

      

      

      

      
        
          
          

        

        
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      SUBSCRIPTION
AGREEMENT

      

      This
SUBSCRIPTION AGREEMENT (this “Agreement”)
is made and entered into as of ________________, 2009, by and between Purden
Lake Resource Corp., a Delaware corporation (the “Company”)
and the investor identified on the signature page to this Agreement (the “Investor”).

      

      RECITALS

      

      
        	
                A.

              	
                WHEREAS, pursuant to the
      Company’s Confidential Private Placement Memorandum, dated October 23,
      2009 (the “Memorandum”),
      the Company is offering (the “Offering”),
      upon the terms and conditions stated in this Agreement and the Memorandum,
      a minimum of 582 units (the “Minimum
      Amount”) and a maximum of 1,147 units (the “Maximum
      Amount”); at a purchase price of $10,000 per unit (each, a “Unit”),
      each Unit consisting of:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                3,937
      shares of the Company’s common stock, par value $0.001 per share (the
      “Common
      Stock”); and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                a
      warrant (the “Warrant”)
      to purchase 514 shares of Common Stock at an exercise price of $3.81 per
      share (the “Warrant
      Shares”);

              

      

      

      
        	
                B.

              	
                WHEREAS, the Units,
      Common Stock, Warrants and Warrant Shares issued pursuant to this
      Agreement are collectively referred to herein as the “Securities;”
      and

              

      

      

      
        	
                C.

              	
                WHEREAS, as a condition
      and subject to the receipt and acceptance of subscriptions in an amount
      equal to no less than the Minimum Amount, the Company shall complete a
      reverse transaction (the “Reverse
      Transaction”) with Ingenious Paragon Global Limited, a British
      Virgin Islands company (“Ingenious”)
      pursuant to which Ingenious shall become a wholly owned subsidiary of the
      Company;

              

      

      

      NOW, THEREFORE, in
consideration of the mutual terms, conditions and other agreements set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, the parties hereto hereby agree to the sale and purchase of the Units as
set forth herein.

      

      
        	
                1.  

              	
                Definitions.  For
      purposes of this Agreement, the terms set forth below shall have the
      corresponding meanings provided
below.

              

      

       

      1.1 “Affiliate”
means, with respect to any specified Person:

       

      (a) if such
Person is an individual, the spouse of that Person and, if deceased or disabled,
his heirs, executors, or legal representatives, if applicable, or any trusts for
the benefit of such individual or such individual’s spouse and/or lineal
descendants, or

       

      
        
          
          

        

        
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      (b) otherwise,
another Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, the Person
specified.  As used in this definition, “control” shall mean the
possession, directly or indirectly, of the power to cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities or by contract or other written instrument.

       

      1.2 “Anti-Dilution
Period” as defined in Section
8.1.

       

      1.3 “Business
Day” means any day on which banks located in New York City are not
required or authorized by law to remain closed.

       

      1.4 “Closing”
and “Closing
Date” as defined in Section
2.6.

       

      1.5 “Common
Stock” as defined in the recitals above.

       

      1.6 “Company
Financial Statements” as defined in Section
5.4.

       

      1.7 “Company’s
knowledge” means the information and/or other items that the executive
officers (as defined in Rule 405 under the Securities Act) of the Company have
actual knowledge of  after due inquiry.

       

      1.8 “Co-Placement
Agents” as defined in the Subscription Instructions.

       

      1.9 “Escrow
Account” means the Company’s non-interest bearing account at Signature
Bank, 261 Madison Avenue, New York, New York 10016 (the “Escrow
Agent”).

       

      1.10 “Escrow
Agreement” means the Escrow Agreement, dated October 21, 2009, by and
among the Company, the Co-Placement Agents and the Escrow Agent.

       

      1.11 “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

       

      1.12 “Final
Closing Date” as defined in Section
2.6.

       

      1.13 “Holder”
or “Holders”
shall mean the holder or holders, as the case may be, from time to time of
Registrable Securities.

       

      1.14 “Initial
Closing” as defined in Section
2.6.

       

      1.15 “Liens”
means any mortgage, lien, title claim, assignment, encumbrance, security
interest, adverse claim, contract of sale, restriction on use or transfer or
other defect of title of any kind.

       

      1.16 “Maximum
Amount” as defined in the recitals above.

       

      1.17 “Minimum
Amount” as defined in the recitals above.

       

      1.18 “Person”
shall mean an individual, entity, corporation, partnership, association, limited
liability company, limited liability partnership, joint-stock company, trust or
unincorporated organization.

       

      
        
          
          

        

        
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      1.19 “Memorandum”
means the Company’s Confidential Private Placement Memorandum, dated October 23,
2009, together with any and all amendments and/or supplements
thereto.

       

      1.20 “Regulation
D” means Regulation D, as amended, promulgated under the Securities
Act.

       

      1.21 “Registrable
Securities” as defined in Section
4.5.

       

      1.22 “Registration
Filing Date” as defined in Section
4.5.

       

      1.23 “Registration
Statement” as defined in Section
4.5.

       

      1.24 “Reverse
Transaction” as defined in the recitals above.

       

      1.25 “Rule
144” means Rule 144, as amended, under the Securities Act or any
successor rule.

       

      1.26 “SEC”
means the United States Securities and Exchange Commission.

       

      1.27 “SEC
Guidance” means (i) any publicly-available written guidance, or rule
of general applicability of the SEC staff, or (ii) oral or written
comments, requirements or requests of the SEC staff to the Company in connection
with the review of a Registration Statement.

       

      1.28 “SEC
Reports” means all reports, schedules, forms, statements and other
documents required to be filed by Purden Lake Resource Corp., pursuant to the
reporting requirements of the Securities Act and/or the Exchange Act since
December 31, 2007.

       

      1.29 “Securities”
as defined in the recitals above.

       

      1.30 “Securities
Act” means the Securities Act of 1933, as amended.

       

      1.31 “Shares”
means the shares of Common Stock underlying the Units.

       

      1.32 “Subsidiaries”
shall mean any corporation or other entity or organization, whether incorporated
or unincorporated, in which the Company owns, directly or indirectly, any
controlling equity or other controlling ownership interest or otherwise controls
through contract or otherwise.

       

      1.33 “Transaction
Documents” shall mean this Agreement, the Memorandum, the Warrants and
the Escrow Agreement.

       

      1.34 “Warrant
Shares” as defined in the recitals above.

       

      1.35 “Warrants”
as defined in the recitals above.

       

      
        
          
          

        

        
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                2. 

              	
                Sale
      and Purchase of Units.

              

      

       

      2.1    Subscription for
Units.    Subject to the terms and conditions of this
Agreement, the undersigned Investor hereby subscribes for and agrees to purchase
the number of Units set forth on the signature page to this Subscription
Agreement, at a purchase price of $10,000 per Unit.

       

      2.2    Payment.  The
Investor encloses herewith a check payable to, or will immediately make a wire
transfer payment to, “Signature
Bank, as Escrow Agent for Purden Lake Resource Corp.,” in the full amount
of the purchase price of the Units being subscribed for.

       

      2.3    Deposit of
Funds.  All payments made as provided in Section
2.2
hereof will be deposited in the Escrow Account.  In the event that the
Company does not effect a Closing (as defined below), on or before November 20,
2009 (the “Initial
Offering Period”), which period may be extended by the Company and the
Co-Placement Agents in their mutual discretion to a date no later than December
21, 2009, unless otherwise further extended at the sole discretion of the
Company (the “Termination
Date”, with this additional period, together with the Initial Offering
Period, being referred to herein as the “Offering
Period”), the Company will refund all subscription funds, without
deduction and/or interest accrued thereon, and will return the subscription
documents to the Investor.

       

      2.4    Acceptance of
Subscription.  The Investor understands and agrees that the
Company and the Co-Placement Agents, in their discretion, reserve the right to
accept or reject this or any other subscription for Units, in whole or in part,
notwithstanding prior receipt by the Investor of notice of acceptance of this or
any other subscription.  The Company will have no obligation hereunder
until the Company executes and delivers to the Investor an executed signature
page to this Subscription Agreement.  If an Investor’s subscription is
rejected in whole, the Offering is terminated, the Minimum Amount is not
subscribed for and accepted, or the Reverse Transaction is not effectuated, all
funds received from the Investor will be returned without interest, penalty,
expense or deduction, and this Subscription Agreement will thereafter be of no
further force or effect.  If an Investor’s subscription is rejected in
part, the funds for the rejected portion of such subscription will be returned
without interest, penalty, expense or deduction, and this Subscription Agreement
will continue in full force and effect to the extent such subscription was
accepted.

       

      2.5    Closing
Deliveries.  Together with the check for, or wire transfer of,
the full purchase price, the Investor is delivering a completed and executed
signature page to this Agreement, a completed investor questionnaire attached
hereto as Annex A, and
an investor certification attached hereto as Annex B or Annex C as applicable (the
“Investor
Certification”).

       

      2.6    Closings.  The
Company may hold an initial closing (the “Initial
Closing”) at any time after: (i) the receipt of accepted subscriptions
prior to the Termination Date equal to an amount not less than the Minimum
Amount; (ii) the completion of the Reverse Transaction; and (iii) the other
conditions to Closing are satisfied.  After the Initial Closing,
subsequent Closings with respect to additional Units may take place at any time,
as determined by the Company and the Co-Placement Agents, with respect to
subscriptions accepted prior to the Termination Date up to the Maximum Amount
(each such closing, together with the Initial Closing, being referred to as a
“Closing”).  The
date of each Closing shall be referred to herein as a “Closing
Date” and the date of the final Closing shall be referred to herein as
the “Final
Closing Date.”

       

      
        
          
          

        

        
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      2.7    Offering to Accredited
Investors.  This Offering is limited to accredited investors as
defined in Section 2(15) of the Securities Act, and Rule 501 under Regulation D,
and is being made without registration under the Securities Act in reliance upon
the exemptions contained in Section 4(2) of the Securities Act, Rule 506 under
Regulation D and applicable state securities laws.

       

      
        	
                3.  

              	
                Representations, Warranties and
      Acknowledgements of the
Investor.

              

      

       

      The
undersigned Investor hereby represents, warrants, acknowledges and agrees
that:

      

      3.1    No
Registration.  None of the Securities have been registered
under the Securities Act, or under any state securities or “blue sky” laws of
any state of the United States.  The Investor understands that the
offering and sale of the Securities is intended to be exempt from registration
under the Securities Act, by virtue of Section 4(2) thereof and the provisions
of Regulation D promulgated thereunder, based, in part, upon the
representations, warranties and agreements of the Investor contained in this
Subscription Agreement.

       

      3.2    Restricted
Securities.  The Investor understands that except as provided
in this Agreement, the sale or re-sale of the Securities has not been and is not
being registered under the Securities Act or any applicable state securities
laws, and the Securities, as applicable, may not be transferred
unless:

       

      (a) they are
sold pursuant to an effective registration statement under the Securities Act;
or

       

      (b) they are
sold pursuant to a valid exemption from the registration requirements of the
Securities Act and, if required by the Company, the Investor shall have
delivered to the Company, at the Company’s sole cost and expense, an opinion of
counsel that shall be in form, substance and scope customary for opinions of
counsel in comparable transactions to the effect that the Securities to be sold
or transferred may be sold or transferred pursuant to an exemption from the
registration requirements of the Securities Act, which opinion shall be
acceptable to the Company; or

       

      (c) they are
sold or transferred to an “affiliate” (as defined in Rule 144) of the Investor
who agrees to sell or otherwise transfer the Securities only in accordance with
this Section
3.2
and who is an accredited investor, or

       

      (d) they are
sold pursuant to Rule 144, which shall be accompanied by an opinion of counsel
that shall be in form, substance and scope customary for opinions of counsel in
comparable transactions to the effect that the Securities to be sold or
transferred may be sold or transferred pursuant to Rule 144.

       

      The
Investor understands that any sale of the Securities made in reliance of Rule
144 may be made only in accordance with the terms of Rule 144 and, other than as
provided in the Transaction Documents, neither the Company nor any other Person
is under any obligation to 

       

      
        
          
          

        

        
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      register
the Securities under the Securities Act or any state securities laws.
Notwithstanding the foregoing or anything else contained herein to the contrary,
the Securities may be pledged as collateral in connection with a bona fide
margin account or other lending arrangement.

      

      3.3    Independent
Advice.  The Investor and the Investor’s attorney, accountant,
purchaser representative and/or tax advisor, if any (collectively, “Advisors”),
have received and have carefully reviewed the Transaction Documents and all
other documents requested by the Investor or its Advisors, if
any,  and understand the information contained therein, prior to the
execution of this Subscription Agreement;

       

      3.4    No SEC Review or
Approval.  Neither the SEC nor any state or other securities
commission, securities regulator or similar regulatory authority has reviewed or
passed on the merits of the Securities or reviewed or passed upon or endorsed
the merits of the Offering or confirmed the accuracy or determined the adequacy
of the Memorandum.  The Memorandum has not been reviewed by any
Federal, state or other regulatory authority.  Any representation to
the contrary may be a criminal offense.

       

      3.5    Disclosure of
Information.  The Investor and its Advisors, if any, have had a
reasonable opportunity to receive, and fully and carefully review, all
information related to the Company, the Securities, the Reverse Transaction and
Ingenious requested by it and to ask questions of and receive answers from the
Company regarding the Company, the Reverse Transaction, Ingenious and the terms
and conditions of the offering of the Securities.   The Investor
acknowledges that it has received, all documents, records, and books pertaining
to the investment in the Securities have been made available to the Investor and
its Advisors, if any.  The Investor and its Advisors, if any, have
fully and carefully reviewed and understand all of the Transaction Documents,
including, but not limited to, the Memorandum describing, among other items, the
Company, the Reverse Transaction, Ingenious, the Securities, the Offering and
the risks associated with all of the foregoing. Investor acknowledges that it
has received, either in hardcopy or electronically, copies of the SEC Reports,
and has fully and carefully reviewed and understands the SEC
Reports.  The Investor understands that its investment in the
Securities involves a high degree of risk.  The Investor’s decision to
enter into this Agreement has been made based solely on the independent
evaluation of the Investor and its Advisors, if any.  The Investor has
received such accounting, tax and legal advice from Persons other than the
Company and the Co-Placement Agents as it has considered necessary to make an
informed investment decision with respect to the acquisition of the
Securities.

       

      3.6    Legends on Shares, Warrants and
Warrant Shares.  The Investor understands that, certificates
evidencing the Shares, the Warrants and Warrant Shares shall bear a restrictive
legend in substantially the following form (and a stop-transfer order may be
placed against transfer of the certificates evidencing such Shares and Warrant
Shares):

       

      “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS

       

      
        
          
          

        

        
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      AMENDED,
OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM
ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.”

      

      If
required by the authorities of any state in connection with the issuance or sale
of the Shares, the Warrants or any Warrant Shares, the certificates will also
bear any legend required by such state authority.

      

      3.7    No Reliance.  In
evaluating the suitability of an investment in the Company the Investor has not
relied upon any representation or other information (oral or written) other than
as stated in the Memorandum, the other Transaction Documents or as contained in
documents so furnished to the Investor or its Advisors, if any, by the Company
in writing.

       

      3.8    No General
Solicitation.  The Investor (i) has a relationship with the
Co-Placement Agents that pre-dates this Offering, and (ii) is unaware of, is in
no way relying on, and did not become aware of the Offering directly or
indirectly through or as a result of, any form of general solicitation or
general advertising including, without limitation, any article, notice,
advertisement, press release or other communication published in any newspaper,
magazine or similar media or broadcast over television, radio or over the
Internet, in connection with the Offering and is not subscribing for Units and
did not become aware of the Offering through or as a result of any seminar or
meeting to which the Investor was invited by, or any solicitation of a
subscription by, a person not previously known to the Investor in connection
with investments in securities generally.

       

      3.9    Brokers,
Finders.  The Investor has taken no action which would give
rise to any claim by any person for brokerage commissions, finders’ fees or the
like relating to the Offering, this Agreement or the transactions contemplated
hereby (other than commissions and other compensation to be paid by the Company
to the Co-Placement Agents as described in the Memorandum).

       

      3.10    Investment
Experience.  The Investor, either alone or together with its
Advisors, if any, have such knowledge and experience in financial, tax, and
business matters, and, in particular, investments in securities similar to the
Securities, so as to enable them to utilize the information made available to
them in connection with the Offering to evaluate the merits and risks of an
investment in the Securities and the Company and to make an informed investment
decision with respect thereto.  The Investor, either alone or together
with its Advisors, is knowledgeable about investments in “shell companies” as
such term is defined under Rule 405 of the Securities Act.

       

      3.11    Purchase Entirely for Own
Account.  The Securities are being acquired for the Investor’s
own account, not as nominee or agent, for investment purposes only and not with
a view to the resale or distribution of any part thereof in violation of the
Securities Act, and the Investor has no present intention of selling, granting
any participation in, or otherwise distributing the same in violation of the
Securities Act, without prejudice, however, to the Investor’s right at all times
to sell or otherwise dispose of all or any part of such Securities in compliance
with applicable federal and state securities laws.

       

      
        
          
          

        

        
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      3.12    High Risk
Investment.  The purchase of the Securities represents a high
risk capital investment and the Investor is able to afford an investment in a
speculative venture having the risks and objectives of the
Company.  The Investor must bear the substantial economic risks of the
investment in the Securities indefinitely because none of the Securities may be
sold, transferred, hypothecated or otherwise disposed of unless subsequently
registered under the Securities Act and applicable state securities laws or an
exemption from such registration is available.  The Investor has
adequate means of providing for such Investor’s current financial needs and
foreseeable contingencies and has no need for liquidity of the investment in the
Securities for an indefinite period of time.  The Investor has a
sufficient net worth to sustain a loss of its entire investment in the Company
in the event such a loss should occur.  The Investor’s overall
commitment to investments which are not readily marketable is not excessive in
view of the Investor’s net worth and financial circumstances and the purchase of
the Securities will not cause such commitment to become
excessive.  This investment in the Securities is a suitable one for
the Investor.

       

      3.13    Accredited
Investor.  The Investor is an “accredited investor” as that
term is defined in Regulation D under the Securities Act, and has truthfully and
accurately completed the applicable accredited investor certification annexed
hereto.

       

      3.14    Capacity.  The
Investor: (i) if a natural person, represents that the Investor has reached the
age of 21 and has full authority, legal capacity and competence to enter into,
execute and deliver this Agreement and the Transaction Documents to which the
Investor is a party and all other related agreements or certificates and to take
all actions required pursuant hereto and thereto and to carry out the provisions
hereof and thereof and, (ii) if a corporation, partnership, or limited liability
company or partnership, or association, joint stock company, trust,
unincorporated organization or other entity, represents that such entity was not
formed for the specific purpose of acquiring the Units, such entity is duly
organized, validly existing and in good standing under the laws of the state of
its organization, such entity has full power and authority to execute and
deliver this Agreement, the Transaction Documents to which it is a party and all
other related agreements or certificates and to take all actions required
pursuant hereto and thereto and to carry out the provisions hereof and thereof
and to purchase and hold the Units, the execution and delivery of this Agreement
and the Transaction Documents to which it is a Party have been duly authorized
by all necessary action; or (iii) if executing this Agreement in a
representative or fiduciary capacity, represents that it has full power and
authority to execute and deliver this Agreement and the Transaction Documents to
which it is a Party in such capacity and on behalf of the subscribing
individual, ward, partnership, trust, estate, corporation, or limited liability
company or partnership, or other entity for whom the Investor is executing this
Agreement and the Transaction Documents, and such individual, partnership, ward,
trust, estate, corporation, or limited liability company or partnership, or
other entity has full right and power to perform pursuant to this Agreement and
the Transaction Documents to which it is a party and make an investment in the
Company.

       

      3.15    No Violation of Corporate Governance
Documents.  If the Investor is a corporation or other entity,
the entering into of this Agreement and the other Transaction Documents to which
it is a party and the transactions contemplated hereby and thereby do not and
will not result in the violation of any of the terms and provisions of any law
applicable to, or the charter, bylaws or other organizational documents of, the
Investor or of any agreement, written or oral, to which the Investor may be a
party or by which the Investor is or may be bound.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      3.16    Binding
Agreement.  The Investor has duly executed and delivered this
Agreement and the other Transaction Documents to which it is a party, and this
Agreement and the other Transaction Documents constitute a valid and binding
agreement of the Investor enforceable against the Investor in accordance with
their respective terms, except as such enforceability may be limited by general
principals of equity, or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and
remedies.

       

      3.17    Not a
Broker-Dealer.  The Investor is neither a registered
representative under the Financial Industry Regulatory Authority (“FINRA”),
a member of FINRA or associated or Affiliated with any member of FINRA, nor a
broker-dealer registered with the SEC under the Exchange Act or engaged in a
business that would require it to be so registered, nor is it an Affiliate of a
such a broker-dealer or any Person engaged in a business that would require it
to be registered as a broker-dealer. In the event the Investor is a member of
FINRA, or associated or Affiliated with a member of FINRA, the Investor agrees,
if requested by FINRA, to sign a lock-up, the form of which shall be
satisfactory to FINRA with respect to the Shares, Warrants and Warrant
Shares.

       

      3.18      (For ERISA plans
only)  The fiduciary of any ERISA plan adopted by the Company
(the “Plan”),
if any, represents that such fiduciary has been informed of and understands the
Company’s investment objectives, policies and strategies, and that the decision
to invest “plan assets” (as such term is defined in ERISA) in the Company is
consistent with the provisions of ERISA that require diversification of plan
assets and impose other fiduciary responsibilities.  The Investor or
Plan fiduciary (a) is responsible for the decision to invest in the Company; (b)
is independent of the Company and any of its affiliates; (c) is qualified to
make such investment decision; and (d) in making such decision, the Investor or
Plan fiduciary has not relied on any advice or recommendation of the Company or
any of its affiliates.

       

      3.19    Prohibited
Transactions.  The Investor hereby represents, warrants, agrees
and covenants to and with the Company that the Investor has not, directly and/or
indirectly, previously had and/or maintained and/or currently has, and/or in the
future will not make or maintain a "short" position in the Company's securities
and will not encourage and/or facilitate the same by any third
party.

       

      3.20    Reliance on
Exemptions.  The Investor understands that the Securities are
being offered and sold to it in reliance upon specific exemptions from the
registration requirements of United States federal and state securities laws and
that the Company is relying upon the truth and accuracy of, and the Investor’s
compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Investor set forth herein in order to determine the
availability of such exemptions and the eligibility of the Investor to acquire
the Securities.  All of the information which the Investor has
provided to the Company is true, correct and complete as of the date of this
Agreement, and if there should be any change in such information prior to the
Closing, the Investor will immediately provide the Company with such
information.

       

      
        
          
          

        

        
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      3.21    Conflicts.  The
Investor understands that Affiliates and/or employees of the Company and/or the
Co-Placement Agents may, but are not obligated to, purchase Securities in the
Offering and any and all such Securities purchased shall be counted toward the
Minimum Amount and the Maximum Amount.

       

      
        	
                4.  

              	
                Covenants of
      the Company.

              

      

       

      4.1    Furnishing of
Information.  For the two year period after the Final Closing
Date, the Company covenants to use its reasonable efforts to (a) file all
reports required to be filed by the Company after the date hereof pursuant to
the Exchange Act and (b) make and keep adequate “current public information” (as
such term is described in Rule 144) available.

       

      4.2    Rule 144 Sales.  In
connection with any proposed sale of Shares or Warrant Shares pursuant to Rule
144 (or any successor provision) by the Investor, the Company covenants that it
shall take such reasonable action as the Investor may request (including,
without limitation, promptly obtaining any required legal opinions from Company
counsel necessary to effect the sale of Shares or Warrant Shares under Rule
144), all to the extent required from time to time to enable the Investor to
sell Shares or Warrant Shares without registration under the Securities Act
pursuant to the provisions of Rule 144 under the Securities Act (or any
successor provision).

       

      4.3    Filing of Tax
Reports.  The Company shall, and shall cause each of its
Subsidiaries to prepare and timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all tax returns and tax reports
required to be filed by each of them in all required jurisdictions after the
date hereof pursuant to applicable tax laws.

       

      4.4    No S-8
Registration.  For one-year following the Termination Date, the
Company shall not issue any shares of Common Stock pursuant to a registration
statement on Form S-8.

       

      4.5    Registration
Rights.

       

      (a) On or
prior to the thirtieth (30th) day
after the Termination Date (the “Registration
Filing Date”), the Company shall file a registration statement (the
“Registration
Statement”) under the Securities Act with the SEC and shall make
appropriate filings in such states as the Co-Placement Agents shall reasonably
specify, (i) registering for resale by the Investors (a) the shares of Common
Stock sold hereunder, and (b) the Warrant Shares; and (ii) registering for
resale by the Co-Placement Agents and other agents shares of Common Stock
underlying any warrants issued to them in connection with the Offering (all of
the foregoing securities, together, being collectively referred to herein as the
“Registrable
Securities”).  The Company shall use its best efforts to have
the Registration Statement declared effective prior to the one hundred fiftieth
(150th) day
following the Termination Date, provided, however, that in the
event of a “full review” by the SEC the Company shall be afforded an additional
thirty (30) days and shall have the Registration Statement declared effective
prior to the one hundred eightieth day (180th) day
following the Termination Date (the “Registration
Effective Date”).  If (i) the Registration Statement has not
been (x) filed on or prior to the Registration Filing Date or (y) declared
effective by the SEC on or before the 

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

        Registration
Effective Date; and (ii) the Registrable Securities included in such
Registration Statement are not saleable under Rule 144, the Company shall pay to
each Investor as liquidated damages, a cash payment equal to one (1%) percent of
the aggregated amount invested by such Investor in the Offering for the first
thirty (30) days, and one (1%) percent of the aggregated amount invested by such
Investor in the Offering for every 30-day period thereafter until the
Registration Statement has been filed and/or declared effective, or such
proportionate percentage for any period less than thirty (30)
days.

      

       

      (b) Notwithstanding
any other provision of this Agreement, if any SEC Guidance sets forth a
limitation on the number of Registrable Securities to be registered in the
Registration Statement (and the Company has made a commercially reasonable
effort to advocate with the SEC for the registration of all or a greater number
of Registrable Securities), the number of Registrable Securities to be
registered on such Registration Statement will be reduced first by the
Registrable Securities owned by the Co-Placement Agents; and, second, on a pro
rata basis among the Investors based on the total number of unregistered Warrant
Shares held by such Investors on a fully diluted basis, unless such Investor
notifies the Company otherwise.  The Company shall file a new
registration statement as soon as reasonably practicable covering the resale by
the Holders of not less than the number of such Registrable Securities that are
not registered in the Registration Statement, provided, that, the Registrable
Securities cannot otherwise be sold pursuant to Rule 144.  The Company
shall not be liable for liquidated damages under this Section
4.5 as to
any Registrable Securities which are not permitted by the SEC to be included in
a Registration Statement due solely to SEC Guidance from time to
time.  In such case, any liquidated damages payable under this Section
4.5 shall be calculated to apply only to the percentage of Registrable
Securities which are permitted in accordance with SEC Guidance to be included in
such Registration Statement.

       

      (c) The
Company will keep any registration statement which registers the Registrable
Securities pursuant hereto effective and current (the “Effectiveness
Period”) until the earlier of the date by which all the registered
Registrable Securities (i) have been sold; or (ii) may be sold pursuant to Rule
144, without any volume restrictions.

       

      (d)  If
during the Effectiveness Period, subject to Section
4.5(a) and Section
4.5(b), the Company becomes aware that the number of Registrable
Securities at any time exceeds the number of Registrable Securities then
registered for resale in a Registration Statement, then the Company shall file
as soon as reasonably practicable an additional Registration Statement covering
the resale by the Holders of not less than the number of such Registrable
Securities that are not then registered.

       

      (e) The
Company will notify each Holder of such Registrable Securities as expeditiously
as possible following the effectiveness of the Registration Statement filed
pursuant to this section and/or of any request by the SEC for the amending or
supplementing of such Registration Statement or prospectus included in the
Registration Statement (the “Prospectus”).
If the Prospectus is amended to comply with the requirements of the Securities
Act, the Holders, if requested by the Company, will immediately cease making
offers of the Registrable Securities and the Company will promptly provide the
Holders with revised Prospectuses to enable the Holders to resume 

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

        making
offers of the Registrable Securities. The Company will promptly notify the
Holders, if after delivery of a Prospectus to the Holders, that, in the judgment
of the Company, it is advisable to suspend use of the Prospectus delivered to
the Holders due to pending material developments or other events that have not
yet been publicly disclosed and as to which the Company believes public
disclosure would be detrimental to the Company. Upon receipt of such notice,
each such Holder will immediately discontinue any sales of Registrable
Securities pursuant to such Registration Statement until such Holder has
received copies of a supplemented or amended Prospectus or until such Holder is
advised in writing by the Company that the then current Prospectus may be used
and has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in such Prospectus.
Notwithstanding anything to the contrary herein, the Company will not exercise
its rights under this subsection to suspend sales of Registrable Securities for
a period in excess of ten (10) consecutive days or thirty (30) days in any
365-day period.

      

       

      (f) If and
whenever the Company is required by the provisions of this Agreement to affect
the registration of any Registrable Securities under the Securities Act, the
Company will:

       

      (i) as
expeditiously as possible furnish to each Holder such reasonable numbers of
copies of the Prospectus, including any preliminary Prospectus, in conformity
with the requirements of the Securities Act, and such other documents as such
Holder may reasonably request in order to facilitate the public sale or other
disposition of the Registrable Securities owned by such Holder;

       

      (ii) as
expeditiously as possible, notify each Holder, promptly after it receives notice
thereof, of the time when such Registration Statement has become effective or a
supplement to any Prospectus forming a part of such Registration Statement has
been filed; and

       

      (iii) qualify
or register the Registrable Securities included in a Registration Statement for
offering and sale under the securities or blue sky laws of such states as are
reasonably requested by any Holder, provided that the Company shall not be
obligated to execute or file any general consent to service of process (unless
the Company is already then subject to service in such
jurisdiction).

       

      (g) In any
registration statement in which Registrable Securities are included, the Company
will bear all expenses and pay all fees incurred in connection therewith,
excluding underwriting discounts and commissions payable with respect to the
Registrable Securities, and fees and expenses of counsel and/or other experts
retained by the Holders of the Registrable Securities but including the expenses
of preparing the Registration Statement, filing it with the SEC and FINRA and
having it declared effective (or cleared) by such agencies, and providing a
reasonable number of copies of the prospectus contained therein to the
Holders.

       

      (h) Indemnification.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (i) The
Company shall indemnify the Holder of the Registrable Securities to be sold or
resold pursuant to any registration statement hereunder and any underwriter or
person deemed to be an underwriter under the Securities Act and each person, if
any, who controls such Holder or underwriters or persons deemed to be
underwriters within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act, against all loss, claim, damage, expense or liability
(including all reasonable attorneys’ fees and other expenses reasonably incurred
in investigating, preparing or defending against any claim whatsoever) to which
the Holder may become subject under the Securities Act, the Exchange Act or
otherwise, arising from such registration statement, except to the extent
arising from information furnished (or omitted to be furnished) by or on behalf
of the Holder, in writing, for specific inclusion in such registration
statement.  The Holder of the Registrable Securities to be sold or
resold pursuant to such registration statement, and their successors and
assigns, shall indemnify the Company, against all loss, claim, damage, expense
or liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which the Company may become subject under the Securities Act,
the Exchange Act or otherwise, arising from information furnished (or omitted to
be furnished) by or on behalf of the Holder, in writing, for specific inclusion
in such registration statement.

       

      (ii) If any
action is brought against a party hereto, (the “Indemnified
Party”) in respect of which indemnity may be sought against the other
party (the “Indemnifying
Party”), such Indemnified Party shall promptly notify Indemnifying Party
in writing of the institution of such action and Indemnifying Party shall assume
the defense of such action, including the employment and fees of counsel
reasonably satisfactory to the Indemnified Party.  Such Indemnified
Party shall have the right to employ its or their own counsel in any such case,
but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the employment of such counsel shall have been
authorized in writing by Indemnifying Party in connection with the defense of
such action, or (ii) Indemnifying Party shall not have employed satisfactory
counsel to defend such action, or (iii) such Indemnified Party shall have
determined that there may be one or more legal defenses available to it which
may result in a conflict between the Indemnified Party and Indemnifying Party
(in which case Indemnifying Party shall not have the right to direct the defense
of such action on behalf of the Indemnified Party), in any of which events, the
reasonable fees and expenses of counsel designated in writing by the Indemnified
Party shall be borne by Indemnifying Party.  Notwithstanding anything
to the contrary contained herein, if Indemnified Party shall assume the defense
of such action as provided above, Indemnifying Party shall not be liable for any
settlement of any such action effected without its written consent.

       

      (iii) If the
indemnification or reimbursement provided for hereunder is finally judicially
determined by a court of competent jurisdiction to be unavailable to an
Indemnified Party (other than as a consequence of a final 

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

         

        judicial
determination of willful misconduct, bad faith or gross negligence of such
Indemnified Party), then Indemnifying Party agrees, in lieu of indemnifying such
Indemnified Party, to contribute to the amount paid or payable by such
Indemnified Party (i) in such proportion as is appropriate to reflect the
relative benefits received, or sought to be received, by Indemnifying Party on
the one hand and by such Indemnified Party on the other or (ii) if (but only if)
the allocation provided in clause (i) of this sentence is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in such clause (i) but also the relative fault of
Indemnifying Party and of such Indemnified Party; provided, however,
that in no event shall the aggregate amount contributed by the Holder
exceed the profit, if any, earned by the Holder as a result of the exercise by
him of the Warrants and the sale or resale by him of the Registrable
Securities.

      

       

      (iv) The
rights accorded to Indemnified Parties hereunder shall be in addition to any
rights that any Indemnified Party may have at common law, by separate agreement
or otherwise.

       

      4.6    Make Good
Agreement.  The Company shall agree to “make good” terms
whereby the management shareholders of the Company will agree to place four
million (4,000,000) shares of its Common Stock (the “Make Good
Shares”) in an escrow account administered by Anslow & Jaclin, LLP
(the “Make Good
Escrow Agent”).  In the event the Company does not achieve a
performance target of Twenty Six Million US Dollars ($26,000,000) Recurring
Operating Net Income under U.S. GAAP before any extra-ordinary gain and
excluding any non-cash expenses for the Company’s fiscal year ended December 31,
2010 (the “Performance
Target”), the Make Good Escrow Agent shall distribute one million
(1,000,000) Make Good Shares to all Investors on a pro rata basis for every one
million dollar ($1,000,000) shortfall under the Performance
Target.  No other consideration (other than the Make Good Shares)
shall be required to be deposited into escrow or delivered to the Investors for
any additional shortfall of the Performance Target or for any other reason
related to this Section
4.6.

       

      4.7    Chief Financial
Officer.  The Company shall hire a Chief Financial Officer
fluent in English and Mandarin within sixty (60) days after the Termination
Date, which person shall be reasonably acceptable to the Co-Placement
Agents.

       

      4.8    Investor
Relations.  The Company shall hire an investor relations/public
relations firm within thirty (30) days after the Termination Date, which firm
shall be reasonably acceptable to the Co-Placement Agents.

       

      4.9    Auditor.  The
Company shall retain an experienced Public Company Accounting Oversight Board
(“PCAOB”)
auditor with prior China public company experience within thirty (30) days after
the Termination Date, which firm shall be reasonably acceptable to the
Co-Placement Agents.

       

      4.10    Special Dividends;
Compensation.  The Company shall not pay any dividends and/or
offer its executives compensation packages that are ten (10%) percent greater
than those in place at the Termination Date in the two (2) years following the
Offering.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      4.11    Exchange
Listing.  The Company shall use its best efforts to
expeditiously seek a listing on NASDAQ and/or the NYSE Amex after the Final
Closing Date.

       

      
        	
                5.  

              	
                Representations
      and Warranties of the Company.

              

      

       

      The
Company represents, warrants and covenants to the Investor that:

      

      5.1    Organization;
Execution, Delivery and Performance.

       

      (a) The
Company and each Subsidiary is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction in which it is
incorporated or organized, with full power and authority (corporate and other)
to own, lease, use and operate its properties and to carry on its business as
and where now owned, leased, used, operated and conducted.  The
Company is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction in which its ownership or use of property or the
nature of the business conducted by it makes such qualification
necessary.

       

      (b) The
Company has no Subsidiaries other than those set forth in the SEC
Reports.  Except as set forth in the SEC Reports, the Company owns,
directly or indirectly, all of the capital stock of each
Subsidiary.

       

      (c) (i)           The
Company has all requisite corporate power and authority to enter into and
perform this Agreement and the other Transaction Documents and to consummate the
transactions contemplated hereby and thereby and to issue the Securities in
accordance with the terms hereof and thereof; (ii) the execution and delivery of
this Agreement and the other Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby
have been duly authorized by the Company’s Board of Directors and no further
consent or authorization of the Company, its Board of Directors, or its
stockholders, is required except as expressly contemplated by this Agreement;
(iii) each of the Transaction Documents has been duly executed and delivered by
the Company by its authorized representative, and such authorized representative
is a true and official representative with authority to sign each such document
and the other documents or certificates executed in connection herewith and bind
the Company accordingly; and (iv) each of the Transaction Documents constitutes,
and upon execution and delivery thereof by the Company will constitute, a legal,
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by
general principals of equity, or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or
affecting generally, the enforcement of applicable creditors’ rights and
remedies.

       

      5.2    Shares and Warrants Duly Authorized,
Etc.  The Shares will be duly and validly issued, fully paid
and non-assessable, and free from all taxes or Liens with respect to the issue
thereof and shall not be subject to preemptive rights, rights of first refusal
and/or other similar rights of stockholders of the Company and/or any other
Person.  The Warrant Shares will be duly authorized and reserved for
future issuance and, upon exercise of the Warrants in accordance with their
terms, will be duly and validly issued, fully paid and non-assessable, and

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

         

        free from
all taxes or Liens with respect to the issue thereof and shall not be subject to
preemptive rights, rights of first refusal and/or other similar rights of
stockholders of the Company and/or any other Person.

      

       

      5.3    Capitalization.

       

      (a) As of
September 30, 2009, the authorized capital stock of the Company consists solely
of 100,000,000 shares of Common Stock, of which 5,500,000 shares of Common Stock
are issued and outstanding, no shares of Common Stock are reserved for issuance
pursuant to securities (other than the Warrants and the warrants issued to the
Co-Placement Agents in the Offering and the shares or convertible securities
issuable pursuant to the Reverse Transaction) exercisable for, or convertible
into or exchangeable for shares of Common Stock.

       

      (b) As of
September 30, 2009, other than as expressly disclosed in the SEC Reports, the
Memorandum or contemplated in the Reverse Transaction:

       

      (i) there are
no outstanding options, warrants, scrip, rights to subscribe for, puts, calls,
rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for any shares of capital stock of the Company,
or arrangements by which the Company is or may become bound to issue additional
shares of capital stock of the Company;

       

      (ii) other
than the registration rights provided for in this Agreement, there are no
agreements or arrangements under which the Company is obligated to register the
sale of any of its securities under the Securities Act (except for the
registration rights provisions contained herein); and

       

      (iii) there are
no anti-dilution or price adjustment provisions contained in any security issued
by the Company (or in any agreement providing rights to security holders) that
will be triggered by the issuance of any of the Share, the Warrants and/or the
Warrant Shares.  All of such outstanding shares of capital stock are,
or upon issuance will be, duly authorized, validly issued, fully paid and
nonassessable.  No shares of capital stock and/or other securities of
the Company are subject to preemptive rights, rights of first refusal and/or any
other similar rights of the stockholders of the Company and/or any other Person
or any Lien imposed through the actions or failure to act of the
Company.

       

      5.4    Financial
Statements.  The consolidated historical financial statements
and schedules of the Company and its consolidated Subsidiaries included in the
SEC Reports and in the Memorandum (the “Company
Financial Statements”) present fairly the financial condition, results of
operations and cash flows of the Company as of the dates and for the periods
indicated, comply as to form with the applicable accounting requirements of
Regulation S-X and have been prepared in conformity with generally accepted
accounting principles in the United States applied on a consistent basis
throughout the periods involved.

       

      
        
          
          

        

        
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      5.5    No Litigation; Governmental
Proceedings.  Other than as expressly disclosed in the SEC
Reports or in the Memorandum, no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the
Company or any of its subsidiaries or its or their property is pending or, to
the best knowledge of the Company, threatened that (i) could reasonably be
expected to have a material adverse effect on the performance of this Agreement
or the other Transaction Documents or the consummation of any of the
transactions contemplated hereby or thereby, or (ii) could reasonably be
expected to have a material adverse effect, except as set forth in or
contemplated by the SEC Reports.

       

      5.6    Ownership of
Properties.  Each of the Company and its Subsidiaries owns or
leases all such properties as are necessary to the conduct of its operations as
presently conducted.

       

      5.7    No
Defaults.  Neither the Company nor any of its Subsidiaries is
in (i) violation or default of any provision of its charter or bylaws; (ii)
default or material violation of the terms of any indenture, contract, lease,
mortgage, deed of trust, note agreement, loan agreement or other agreement,
obligation, condition, covenant or instrument to which it is a party or bound or
to which its property is subject; or (iii) default or material violation of any
statute, law, rule, regulation, judgment, order or decree applicable to the
Company or any of its Subsidiaries of any court, regulatory body, administrative
agency, governmental body, arbitrator or other authority having jurisdiction
over the Company or such Subsidiary or any of its properties, as
applicable.

       

      5.8    Tax Returns.  The
Company has filed all U.S. federal, state and local tax returns that are
required to be filed or has requested extensions thereof and has paid all taxes
required to be paid by it and any other assessment, fine or penalty levied
against it, to the extent that any of the foregoing is due and payable, except
for any such assessment, fine or penalty that is currently being contested in
good faith and except as set forth in or contemplated in the SEC
Reports.

       

      5.9    Registration
Rights.  Except as contemplated pursuant to this Agreement, the
Company has not granted or agreed to grant to any Person any rights (including
“piggy-back” registration rights) to have any securities of the Company
registered pursuant to this Agreement that have not been satisfied or expressly
waived, in writing, by the Person who has such registration rights.

       

      5.10    No Securities Act
Registration.  Assuming the accuracy of the Investor’s
representations and warranties set forth in this Agreement, no registration
under the Securities Act of the Securities is required for the offer and sale of
the Securities to the Investor in the manner contemplated herein and in the
Memorandum.

       

      5.11    No Material
Changes.  Except as expressly set forth in the SEC Reports or
as expressly required in the Reverse Transaction, since June 30, 2009, there has
not been:

       

      (a) Any
material adverse change in the financial condition, operations or business of
the Company from that shown on the Company Financial Statements, or any material
transaction or commitment effected or entered into by the Company outside of the
ordinary course of business;

       

      (b) Any
issuance by the Company of any securities; or

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      (c) Any
incurrence of any material liability outside of the ordinary course of
business.

       

      5.12    No General Solicitation. The
Company has not, and to the Company’s knowledge no other Person has conducted
any “general solicitation,” as such term is defined in Regulation D with respect
to any of the Securities being offered hereby.

       

      5.13    Books and Records. The books
of account, ledgers, order books, records and documents of the Company
accurately and completely reflect all material information relating to the
businesses of the Company, the location and collection of its assets, and the
nature of all transactions giving rise to the obligations or accounts receivable
of the Company.

       

      5.14    Disclosure. All information
relating to or concerning the Company and its officers, directors, employees,
customers or clients set forth in the Memorandum does not contain an untrue
statement of material fact or omit to state any material fact necessary in order
to make the statements made herein or therein, in light of the circumstances
under which they were made, not misleading.

       

      
        	
                6.  

              	
                Conditions
      to Closing of the Investor.

              

      

       

      The
obligation of the Investor to purchase the Units at the Closing is subject to
the fulfillment to the Investor’s satisfaction, on or prior to the Closing Date,
of the following conditions, any of which may be waived by the
Investor:

      

      6.1    Representations and
Warranties.  The representations and warranties made by the
Company shall be true and correct at all times prior to and on each Closing
Date, except to the extent any such representation or warranty expressly speaks
as of an earlier date, in which case such representation or warranty shall be
true and correct as of such earlier date.  The Company shall have
performed in all material respects all obligations and covenants herein required
to be performed by it on or prior to the Closing Date.

       

      6.2    Approvals.  The
Company shall have obtained any and all consents, permits, approvals,
registrations and waivers necessary or appropriate for consummation of the
purchase and sale of the Securities and the consummation of the other
transactions contemplated by the Transaction Documents, all of which shall be in
full force and effect.

       

      6.3    Judgments, Etc.  No
judgment, writ, order, injunction, award or decree of or by any court, or judge,
justice or magistrate, including any bankruptcy court or judge, or any order of
or by any governmental authority, shall have been issued, and no action or
proceeding shall have been instituted by any governmental authority, enjoining
or preventing the consummation of the transactions contemplated hereby or in the
other Transaction Documents.

       

      6.4    Stop Orders.  No
stop order or suspension of trading shall have been imposed by the SEC or any
other governmental or regulatory body having jurisdiction over the Company or
the market(s) where the Company’s Common Stock is listed or quoted, with respect
to public trading in the Common Stock.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      6.5    Lock-Up
Agreements.  The Company shall have delivered to the
Co-Placement Agents fully executed and dated Lock-Up Agreements from the
officers, directors and shareholders of Guangxi Liuzhou Baicaotang Medicine
Limited, the People’s Republic of China subsidiary of Ingenious (the “Baicaotang
PRC Shareholders”), and the original shareholder of Forever Well Asia
Pacific Limited, the Hong Kong subsidiary of Ingenious (the “Forever
Well Shareholder”), whereby the Baicaotang PRC Shareholders and the
Forever Well Shareholder agree that, without the express prior written consent
of the Investors, they will not offer, pledge, sell or otherwise dispose of any
shares of Common Stock, or any securities convertible into or exercisable or
exchangeable for shares of Common Stock for a period commencing on the Initial
Closing and terminating one (1) year after the earlier of: (i) the effectiveness
of the Registration Statement; or (ii) the date that the Registrable Securities
may be sold pursuant to Rule 144.  The form of Lock-Up Agreement must
be expressly approved by the Co-Placement Agents.

       

      6.6    Fees and
Expenses.  At the Initial Closing and each subsequent Closing
thereafter, the Company shall pay such fees and expenses as disclosed in the
Memorandum.

       

      
        	
                7.  

              	
                Conditions to
      Closing of the Company.

              

      

       

      The
obligations of the Company to effect the transactions contemplated by this
Agreement are subject to the fulfillment at or prior to each Closing Date of the
conditions listed below:

      

      7.1    Representations and
Warranties.  The representations and warranties made by the
Investor shall be true and correct in all material respects at the time of
Closing as if made on and as of such date.

       

      7.2    Corporate
Proceedings.  If the Investor is a corporation or other entity,
all corporate and other proceedings required to be undertaken by the Investor in
connection with the transactions contemplated hereby shall have occurred and all
documents and instruments incident to such proceedings shall be reasonably
satisfactory in substance and form to the Company.

       

      7.3    Agreements.  The
Investor shall have completed and executed this Agreement, the other Transaction
Documents to which it is a party and shall have completed the Investor
Certification, and delivered the same to the Company

       

      7.4    Purchase Price.  The
Investor shall have delivered or caused to be delivered the full purchase price
for the Units subscribed for to the Company.

       

      7.5    Minimum Amount.  The
Minimum Amount shall have been raised.

       

      7.6    Reverse Transaction.  The
Reverse Transaction shall have been effectuated.

       

      
        	
                8.  

              	
                Anti-Dilution Protection; Right
      of First Refusal.

              

      

       

      8.1    Anti-Dilution
Protection.  For a period commencing on the date of the Final
Closing Date and ending on the date that is two year after the earlier of: (i)
the effectiveness of the Registration Statement; or (ii) the date that the
Registrable Securities may be sold under Rule 144 (the “Anti-Dilution
Period”), the Company hereby agrees to grant to Investors the following
anti-dilution protection:

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      (a) In the
event that during the Anti-Dilution Period, the Company sells or reserves for
issuance Additional Shares (as defined below) of its Common Stock at a per share
price less than $2.54 per share (a “Down
Round Financing”), then promptly after a sale of Additional Shares, the
Company shall issue to each Investor that is still a holder of Shares at the
time of a sale of Additional Shares (each a “Holder”),
that number of shares of Common Stock, rounded down to the nearest whole share,
equal to the difference between (i) the aggregate purchase price paid by each
such Holder for each Share underlying Units purchased in the Offering divided by
the Weighted Average Adjusted Price (as defined below), less (ii) the number of
Shares underlying Units actually purchased in the Offering by such
Holder.

       

      (b) For
purposes hereof, “Additional
Shares” shall mean shares of Common Stock sold for cash for a price per
share of less than $2.54 per share excluding, any shares of Common Stock (i)
issuable in connection with any merger, acquisition, business combination, joint
ventures and/or technology and/or product acquisitions by the Company and/or any
of its subsidiaries, (ii) issuable to financial institutions or lessors in
connection with commercial credit arrangements, equipment financing or similar
transactions; (iii) issuable upon exercise of any options, warrants or rights to
purchase any securities of the Company or upon conversion of any convertible
securities outstanding as of the Initial Closing; (iv) issuable as dividends
and/or interest payments; (v) issuable pursuant to stock options issued to
employees, consultants, officers or directors of the Company pursuant to stock
purchase or stock option plans approved by the Company’s board of directors and
shareholders; and (vi) issuable in connection with the Reverse Transaction.

       

      (c) For each
Down Round Financing during the Anti-Dilution Period, the “Weighted Average
Adjusted Price” shall equal the quotient obtained by dividing (i) an amount
equal to the sum of the aggregate purchase price of all of the Shares underlying
Units sold in the Offering plus the aggregate consideration received by the
Company for such Additional Shares issued during the Anti-Dilution Period; by
(ii) an amount equal to the sum of the aggregate number of Shares underlying
Units sold in the Offering plus the aggregate number of Additional
Shares.

       

      8.2    Right of First
Refusal.  During the Anti-Dilution Period, the Company shall
notify the Co-Placement Agents of any proposed financing the Company intends to
pursue and shall grant to each Holder a right of first refusal to participate in
such financing conducted by the Company.  If the Company does not
receive notice from one of the Co-Placement Agents of an intention to
participate in the proposed financing within ten (10) days of actual receipt by
each Co-Placement Agent of such notice, then such right of first refusal shall
be deemed waived, but solely for the particular transaction and shall remain in
full effect for subsequent transactions.

       

      
        	
                9.  

              	
                Indemnification.

              

      

       

      9.1    Indemnification by the
Company.  The Company expressly and irrevocably agrees to
indemnify and hold harmless the Investor and its Affiliates and their respective

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

         

        directors,
officers, employees and agents (the “Investor
Indemnitees”) from and against any and all losses, claims, damages,
liabilities and expenses (including without limitation reasonable attorney fees
and disbursements and other expenses as and when incurred in connection with
investigating, preparing or defending any action, claim or proceeding, pending
or threatened and the costs of enforcement thereof) (collectively, “Losses”)
to which such Investor Indemnitees may become subject, insofar as such Losses
arise out of or are based upon any breach of representation, warranty, covenant
or agreement made by the Company under the Transaction Documents and will
reimburse any such Investor Indemnitees for all such amounts as they are
incurred by such Investor Indemnitees, provided, however, that the
Company shall only indemnify such Losses up to an amount not to exceed the
Purchase Price paid by such Investor for his respective
Units.

      

       

      9.2    Indemnification by the
Investor.  The Investor agrees to indemnify and hold harmless
the Company, the Co-Placement Agents, and their respective Affiliates,
directors, officers, employees and agents (collectively, the “Company
Indemnitees”) from and against any and all Losses to which such Company
Indemnitees may become subject, insofar as such Losses arise out of or are based
upon (a) any untrue statement or alleged untrue statement of a material fact
made by the Investor and contained in the Transaction Documents or in the
Investor Certification, or (b) any breach of representation, warranty, covenant
or agreement made by or to be performed on the part of the Investor under the
Transaction Documents or in the Investor Certification, and will reimburse any
such Company Indemnitees for all such amounts as they are incurred by such
Company Indemnitees.

       

      9.3    Notices.  Promptly
after receipt by any Investor Indemnitees or Company Indemnitees, as applicable,
of notice of any demand, claim or circumstances which would or might give rise
to a claim or the commencement of any action, proceeding or investigation in
respect of which indemnity may be sought pursuant to this Section
9,
such Investor Indemnitees or Company Indemnitees, as applicable, shall promptly
notify the other party in writing and such other party shall assume the defense
thereof, including the employment of counsel reasonably satisfactory to such
Investor Indemnitees or Company Indemnitees, as applicable, and shall assume the
payment of all fees and expenses; provided, however, that the
failure of any Investor Indemnitees or Company Indemnitees, as applicable, so to
notify the other party shall not relieve the other party of its obligations
hereunder except to the extent that the other party is materially prejudiced by
such failure to notify.  In any such proceeding, any Investor
Indemnitees or Company Indemnitees, as applicable, shall have the right to
retain its own counsel, but the fees and expenses of such counsel shall be at
the expense of such Investor Indemnitees or Company Indemnitees, as applicable,
unless:

       

      (a) the
Investor Indemnitees and Company Indemnitees shall have mutually agreed to the
retention of such counsel; or

       

      (b) in the
reasonable judgment of counsel to such Investor Indemnitees or Company
Indemnitees, as applicable, representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between
them.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      9.4 Settlements.  Neither
the Investor Indemnitees or Company Indemnitees, as applicable, shall be liable
for any settlement of any proceeding effected without its written consent, which
consent shall not be unreasonably withheld, but if settled with such consent, or
if there be a final judgment for the plaintiff, the other party shall indemnify
and hold harmless such Investor Indemnitees or Company Indemnitees, as
applicable, from and against any loss or liability (to the extent stated above)
by reason of such settlement or judgment.  Without the prior written
consent of the Investor Indemnitees or Company Indemnitees, as applicable, which
consent shall not be unreasonably withheld, the other party shall not effect any
settlement of any pending or threatened proceeding in respect of which any
Investor Indemnitees or Company Indemnitees, as applicable, is or could have
been a party and indemnity could have been sought hereunder by such Investor
Indemnitees or Company Indemnitees, as applicable, unless such settlement
includes an unconditional release of such Investor Indemnitees or Company
Indemnitees, as applicable, from all liability arising out of such
proceeding.

       

      
        	
                10.  

              	
                Miscellaneous.

              

      

       

      10.1    Blue Sky
Qualification.  The purchase of Securities under this
Subscription Agreement is expressly conditioned upon the exemption from
qualification of the offer and sale of the Securities from applicable Federal
and state securities laws.  The Company will not be required to
qualify this transaction under the securities laws of any jurisdiction and,
should qualification be necessary, the Company will be released from any and all
obligations to maintain its offer, and may rescind any sale contracted, in the
jurisdiction.

       

      10.2    Notices.  All
notices, requests, demands and other communications provided in connection with
this Agreement shall be in writing and shall be deemed to have been duly given
at the time when hand delivered, delivered by express courier, or sent by
facsimile (with receipt confirmed by the sender’s transmitting device) in
accordance with the contact information provided below or such other contact
information as the parties may have duly provided by notice.

       

      The
Company:

      

      Purden
Lake Resource Corp.

      c/o China
Baicaotang Medicine Limited

      No. 102,
Chengzhan Road

      Liuzxhou
City, Guangxi Province, PRC

      Telephone:
(86) 1877209778, (86) 772 3638318,

      Facsimile:  (86)
772 3611763_

      Attention:
Xiao Yan Zhang

      

      With a
copy to (which shall not constitute notice):

      

      Anslow
& Jaclin, LLP

      195 Route
9 South, Suite 204

      Manalapan,
New Jersey 07726

      Telephone:
(732) 409-1212

      Facsimile:
(732) 577-1188

      Attention:
Eric Stein, Esq.

      

      The
Investor:

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      
 

      As per
the contact information provided on the signature page hereof.

      

      With a
copy to (which shall not constitute notice):

      

      Gusrae,
Kaplan, Bruno & Nusbaum, PLLC

      120 Wall
Street

      New York,
New York 10005

      Telephone:
(212) 269-1400

      Facsimile:
(212) 809-5449

      Attention:
Lawrence G. Nusbaum, Esq.

      

      10.3    Survival of Representations and
Warranties.  Each party hereto covenants and agrees that the
representations and warranties of such party contained in this Agreement shall
survive the Closing.

       

      10.4    Entire Agreement. This
Agreement and the other Transaction Documents contain the entire agreement
between the Company and the Investor in respect of the subject matter contained
herein and supersedes all prior agreements and understandings of the parties,
oral and written, with respect to the subject matter contained
herein.

       

      10.5    Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and assigns. Neither the Company nor
the Investor shall assign this Agreement or any rights or obligations hereunder
without the prior written consent of the other.

       

      10.6    Publicity. The Company shall
be entitled, without the prior approval of the Investor, to make any press
release or SEC or other regulatory filings with respect to such transactions as
is expressly required by applicable law and regulations.

       

      10.7    Binding Effect;
Benefits.  This Agreement and all the provisions hereof shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns; nothing in this Agreement,
expressed or implied, is intended to confer on any persons other than the
parties hereto or their respective successors and permitted assigns, any rights,
remedies, obligations or liabilities under or by reason of this
Agreement.

       

      10.8    Amendment; Waivers. All
modifications, amendments or waivers to this Agreement shall require the written
consent of both the Company and a majority in interest of the Investors (based
on the number of Units purchased hereunder).

       

      10.9    Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial.  This Agreement shall be
governed by, and construed solely and exclusively in accordance with, the
internal laws of the State of New York without regard to the choice of law
principles thereof.  Each of the parties hereto irrevocably submits to
the sole and exclusive jurisdiction of the courts of the State of New York
located in New York County and the United States District Court for the Southern
District of New York for the purpose of any suit, action, proceeding or judgment
relating to or arising out of this Agreement and the transactions contemplated
hereby (a “Proceeding”).  Each
of the parties hereto irrevocably consents to the sole and exclusive

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

         

        jurisdiction
of any such court in any such Proceeding and to the laying of venue in such
court.  Each party hereto expressly and irrevocably waives any
objection to the laying of venue of any such Proceeding brought in such courts
and irrevocably waives any claim that any such Proceeding brought in any such
court has been brought in an inconvenient forum.  The successful party
in any Proceeding shall be entitled to its legal fees and expenses from the
losing party.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST
A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS
THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

      

       

      10.10    Confidentiality.  The
Investor acknowledges and agrees that any information or data the Investor has
acquired from or about the Company, not otherwise properly in the public domain,
was received in confidence (the “Confidential
Information”).  Any distribution of the Confidential
Information to any person other than the Investor named above, in whole or in
part, or the reproduction of the Confidential Information, or the divulgence of
any of its contents (other than to the Investor’s tax and financial advisers,
attorneys and accountants, who will likewise be required to maintain the
confidentiality of the Confidential Information) is unauthorized, except that
any Investor (and each employee, representative, or other agent of the Investor)
may disclose to any and all persons, without limitations of any kind (except as
provided in the next sentence) the tax treatment and tax structure of the
transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to the Investor relating to such tax treatment and
tax structure.  Any such disclosure of the tax treatment, tax
structure and other tax-related materials shall not be made for the purpose of
offering to sell the securities offered hereby or soliciting an offer to
purchase any such securities.  Except as provided above with respect
to tax matters, the above named Investor, agrees not to divulge, communicate or
disclose, except as may be required by law or for the performance of this
Subscription Agreement, or use to the detriment of the Company or for the
benefit of any other person or persons, or misuse in any way, any Confidential
Information of the Company, including any scientific, technical, trade or
business secrets of the Company and any scientific, technical, trade or business
materials that are treated by the Company as confidential or proprietary,
including, but not limited to, ideas, discoveries, inventions, developments and
improvements belonging to the Company and Confidential Information obtained by
or given to the Company about or belonging to third parties.

       

      10.11    Further
Assurances.  Each party hereto shall do and perform or cause to
be done and performed all such further acts and shall execute and deliver all
such other agreements, certificates, instruments and documents as any other
party hereto reasonably may request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

       

      10.12    Counterparts. This agreement
may be executed in any number of counterparts, each of which shall be deemed to
be an original, and all of which shall constitute one and the same
document.  In the event that any signature (including a financing
signature page) is delivered by facsimile transmission or by e-mail delivery of
a “.pdf” format data file, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “pdf” signature
page were an original thereof.

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      10.13    Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof but shall be interpreted as if it were written so as to be
enforceable to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.  To the
extent permitted by applicable law, the parties hereby waive any provision of
law which renders any provision hereof prohibited or unenforceable in any
respect.

       

      

      

      [SIGNATURE
PAGE IMMEDIATELY FOLLOWS]

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      [SIGNATURE
PAGE TO SUBSCRIPTION AGREEMENT]

      

      IN WITNESS WHEREOF, the undersigned
Investor and the Company have caused this Subscription Agreement to be duly
executed as of the date first above written.

      

      
        	 
      	
                PURDEN
      LAKE RESOURCE CORP.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	
                Name:

              	 
      
	 
      	
                Title:

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                INVESTOR:

              
	 
      	
                The
      Investor executing the Investor Counterpart Signature Page attached hereto
      and delivering the same to the Company or its agents shall be deemed to
      have executed this Agreement and agreed to the terms hereof.

                 

              

      

       

       

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      
 

      Investor
Counterpart Signature Page

      

      The
undersigned, desiring to:

      

      
        	
                (a)

              	
                enter
      into this Agreement dated as of ___________, 2009, between the undersigned
      and the Company; and

              

      

      

      (b)           purchase
the Units of the Company as set forth below,

      

      hereby
agrees to purchase such Units from the Company as of the Closing and further
agrees to join the Agreement as a party thereto, with all the rights and
privileges appertaining thereto, and to be bound in all respects by the terms
and conditions thereof.  The undersigned specifically acknowledges
having read the representations in the section of the Agreement entitled
“Representations, Warranties and Acknowledgments of the Investor,” and hereby
represent that the statements contained therein are complete and accurate with
respect to the undersigned as an Investor.

      

      Investor
herby elects to purchase a total of __________ Units at a price of $10,000 per
Unit. (Each Unit consisting of 3,937 shares of Common Stock and a Warrant to
purchase 514 Warrant Shares)

      

      
        	
                IF
      AN ENTITY:

              	 
      	
                IF
      AN INDIVIDUAL:

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Name
      of Entity:

              	 
      	 
      	
                Print
      Name:

              	 
      
	 
      	
                (Print)

              	 
      	 
      	 
      
	 
      	 
      	 
      	
                Signature:

              	 
      
	
                By:

              	 
      	 
      	 
      	 
      
	 
      	
                (Signature)

              	 
      	
                Co-Investor

              	 
      
	 
      	 
      	 
      	
                Print
      Name:

              	 
      
	
                Print
      Name:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                Signature:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Date:

              	 
      	 
      	
                Date:

              	 
      

      

      

       

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

       

      
 

      
        	
                ANNEX
      A

                INVESTOR
      QUESTIONNAIRE

                 

                INDIVIDUAL
      INVESTORS

              
	
                Investor
      Name:

              	 
      
	
                Co-Investor
      Name:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Individual
      Executing Profile or Trustee (If Applicable):

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Marital
      Status:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                SSN
      #:

              	 
      	 
      	
                Joint
      Party SSN #:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Date
      of Birth:

              	 
      	 
      	
                Joint
      Party Date of Birth:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Primary
      Residence:

              	 
      	 
      	 
      	 
      
	
                Street
      Address:

              	 
      	 
      	 
      	 
      
	
                City,
      State & Zip Code:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Home
      Phone:

              	 
      	 
      	
                Home
      Fax:

              	 
      
	
                Email
      address:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Business
      Address:

              	 
      	 
      	 
      	 
      
	
                Business
      Phone:

              	 
      	 
      	
                Business
      Fax:

              	 
      
	
                Business
      Email Address:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                ENTITY
      INVESTORS

              
	
                Entity
      Investor Name:

              	 
      	 
      	 
      	 
      
	
                Individual
      Executing Questionnaire:

              	 
      
	
                Federal
      Tax ID No.:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Business
      Address:

              	 
      	 
      	 
      	 
      
	
                Business
      Street Address:

              	 
      	 
      	 
      	 
      
	
                Business
      City, State & Zip Code:

              	 
      	 
      
	
                Contact
      Person:

              	 
      	 
      	 
      	 
      
	
                Business
      Phone:

              	 
      	 
      	
                Business
      Fax:

              	 
      
	
                Business
      Email Address:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                SECURITY
      DELIVERY INSTRUCTIONS (Check One):

              	 
      
	
                

              	
                Please
      deliver to the Home Address listed above

              	 
      
	
                

              	
                Please
      deliver to the Business Address listed above

              
	
                

              	
                Please
      deliver my securities to the following address:

              
	 
      	 
      	 
      

      

       

       

      
        
          
          

        

        
          Annex A

          
            

          

        

        
          
          

        

      

      
 

      

      
        	
                ANNEX
      B

                 

                CERTIFICATE
      FOR INDIVIDUAL INVESTORS (Including Grantors of Revocable
      Trusts)

              
	
                If
      the investor is an individual, including married couples and IRA accounts
      of individual investors, pleased complete, date and sign this Certificate.
      If the investment is to be held jointly, each investor must execute and
      deliver the Subscription Agreement and initial their Investor Status as
      requested below and execute this Certificate.

              
	 
      	 
      
	
                
      Individual

              	
                Joint
      Tenants (both Joint Tenants must initial their Investor Status and sign
      this Certificate)

              
	
                
      IRA

              	
                Tenants
      in Common (both tenants-in-common must initial their Investor Status and
      sign this Certificate)

              
	
                
      Tenants in the Entirety

              	
                Community
      Property (all holders must initial their Investor Status and sign this
      Certificate)

              
	
                Grantor
      of a Revocable Trust (identify each grantor and indicate under what
      circumstances the trust is revocable by the grantor.  If you
      check this box, please note all Trustees must complete the Investor Status
      Section below and sign this Certificate).

              
	 
      	 
      	 
      	 
      	 
      
	
                Names
      of Grantors:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                
      Check if any Grantor is deceased, disabled or legally
      incompetent.

              
	 
      	 
      	 
      	 
      	 
      
	
                INVESTOR
      STATUS (Including Grantors of Revocable Trusts)

              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                I
      certify that I have a net worth (including home, furnishings and
      automobiles) in excess of $1 million either individually or through
      aggregating my individual holdings and those in which I have a joint,
      community property or other similar shared ownership interest with my
      spouse.

              
	
                Initial
      if Applicable

              	 
      	 
      	 
      	 
      
	 
      	
                I
      certify that I have had an annual gross income for the past two years of
      at least $200,000 (or $300,000 jointly with my spouse) and expect my
      income (or joint income, as appropriate) to reach the same level in the
      current year.

              
	
                Initial
      if Applicable

              	 
      	 
      	 
      	 
      
	 
      	
                I
      certify that I am a director or executive officer of Purden Lake Resource
      Corp.

              
	
                Initial
      if Applicable

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                The
      undersigned certifies that the representations and responses above are
      true and accurate:

              
	 
      	 
      	 
      	 
      	 
      

      

      

      
        	
                Investor
      Name (Print):

              	 
      	 
      	
                Co-
      Investor Name:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Signature:

              	 
      	 
      	
                Co-
      Investor Signature:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Date:

              	 
      	 
      	
                Date:

              	 
      

      

       

       

       

      
        
          
          

        

        
          Annex B

          
            

          

        

        
          
          

        

      

      
 

      
        	
                ANNEX
      C

                 

                ENTITY
      INVESTORS CERTIFICATE

                (CORPORATIONS,
      PARTNERSHIPS, LIMITED LIABILITY COMPANIES,

                IRREVOCABLE
      TRUSTS, AND FOUNDATIONS)

              
	
                If
      the Investor is a corporation, partnership, limited liability company,
      irrevocable trust, pension plan, foundation or other entity, an authorized
      officer, partner, or trustee must provide the requested information below,
      initial the Investor Status and sign this Certificate.

              
	
                Type
      of Entity (check one):

              
	
                
      Limited Partnership

              	
                
      General Partnership

              
	
                
      Limited Liability Company

              	
                
      Corporation

              
	
                
      Irrevocable Trust:

              	
                
      Other form of organization:

              
	
                Grantors
      of Revocable Trust: Please complete Annex B.

              
	 
      	 
      	 
      	 
      	 
      
	
                Date
      of Formation:

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                NOTE:
      PLEASE PROVIDE A COPY OF THE ORGANIZATIONAL DOCUMENTATION. (i.e., Articles
      of Incorporation, Partnership Agreement, Operating Agreement, Trust
      Agreement, etc)

              
	 
      	 
      	 
      	 
      	 
      
	
                In
      order for the Company to offer and sell the Shares in conformance with
      state and federal securities laws, the following information must be
      obtained regarding your investor status.  Please initial each
      category applicable to you as an investor in the
  Company.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                A
      bank as defined in Section 3(a)(2) of the Securities Act, or any savings
      and loan association or other institution as defined in Section 3(a)(5)(A)
      of the Securities Act whether acting in its individual or fiduciary
      capacity;

              
	
                Initial
      if Applicable

              	 
      	 
      	 
      	 
      
	 
      	
                A
      broker or dealer registered pursuant to Section 15 of the Securities
      Exchange Act of 1934;

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                An
      insurance company as defined in Section 2(13) of the Securities
      Act;

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                An
      investment company registered under the Investment Company Act of 1940 or
      a business development company as defined in Section  2(a)(48)
      of that Act;

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                A
      Small Business Investment Company licensed by the U.S.  Small
      Business Administration under Section 301(c) or (d) of the Small Business
      Investment Act of 1958;

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                A
      plan established and maintained by a state, its political subdivisions, or
      any agency or instrumentality of a state or its political subdivisions,
      for the benefit of its employees, if such plan has total assets in excess
      of $5,000, 000;

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                An
      employee benefit plan within the meaning of the Employee Retirement Income
      Security Act of 1974, if the investment decision is made by a plan
      fiduciary, as defined in Section 3(21) of such Act, which is either a
      bank, savings and loan association, insurance company, or registered
      investment advisor, or if the employee benefit plan has total assets in
      excess of $5,000,000 or, if a self-directed plan, with investment
      decisions made solely by persons that are accredited
      investors;

              
	
                Initial
      if Applicable

              	 
      

      

       

       

       

      
        
          
          

        

        
          Annex
C

          
            

          

        

        
          
          

        

      

      
 

      
        	 
      	
                A
      private business development company as defined in Section 202(a)(22) of
      the Investment Advisers Act of 1940;

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                Any
      partnership or corporation or any organization described in Section
      501(c)(3) of the Internal Revenue Code or similar business trust, not
      formed for the specific purpose of acquiring the Shares and Warrants, with
      total assets in excess of $5,000,000;

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                A
      trust, with total assets in excess of $5,000,000, not formed for the
      specific purpose of acquiring the Shares and Warrants, whose purchase is
      directed by a sophisticated person as described in
      Rule  506(b)(2)(ii) of the Securities Act; or

              
	
                Initial
      if Applicable

              	 
      
	 
      	
                An
      entity in which all of the equity owners qualify under any of the above
      subparagraphs.*

              
	
                Initial
      if Applicable

              	
                *If
      the undersigned belongs to this investor category only, list the equity
      owners of the undersigned, and have each equity owner complete and deliver
      Annex A and Annex B
      hereof:

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                The
      undersigned certifies that the representations and responses above are
      true and accurate and that the undersigned has the authority to execute
      and deliver the Subscription Agreement and this Certificate on behalf of
      the Investor and to take other actions with respect
    thereto.

              
	 
      	 
      
	
                Entity
      Investor Name:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By
      (Signature):

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Print
      Name:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Title:

              	 
      	 
      	 
      	 
      

      

      
Annex
Cf8k122309ex10ii_cbt.htm

    Exhibit
10.2

     

    
      CO-PLACEMENT AGENT
AGREEMENT

       

      October
21, 2009      

       

      

      Tang Hui
Tian, President

      China
Baicaotang Medicine Limited

      No. 102,
Chengzhan Road

      Liuzhou
City, Guangxi Province, PRC

      

      

      Dear Mr.
Tang:

      

      This Co-Placement Agent Agreement (the
“Agreement”)
is entered into by and among Ingenious Paragon Global Limited, a company
organized under the laws of the British Virgin Islands (“Ingenious”),
Forever Well Asia Pacific Limited, a Hong Kong company and the wholly owned
subsidiary of Ingenious (“Forever
Well”), Guangxi Liuzhou Baicaotang Medicine Limited, a company organized
under the laws of the PRC (“BCT”),
Hefeng Pharmaceutical Company Ltd. (“Hefeng”),
and Guangxi Liuzhou Baicaotang Medicine Retail Limited (“Retail”)(each
of Ingenious, Forever Well, BCT, Hefeng and Retail shall be referred to
individually as a “BCT
Company” and, as the “Company”),
Purden Lake Resource Corp., a Delaware corporation (“Pubco”),
May Davis Partners, LLC (“May
Davis”) and American Capital Partners LLC (“ACP”).  May
Davis and ACP shall be referred to herein individually as a “Co-Placement
Agent” and collectively herein as the “Co-Placement
Agents”.

      

      RECITALS

      

      A.           The
Company will enter into an agreement with Pubco, a shell corporation that files
reports with the Securities and Exchange Commission, pursuant to which Ingenious
shall become a wholly owned subsidiary of Pubco and immediately after the
Merger, the business of Pubco shall be the business of the Company.

      

      B.           As
a condition to the closing of the Merger, Pubco shall close on a private
offering of its securities through the Co-Placement Agents as more fully
described in this Agreement.

      

      1.   The
Offering and the Reverse Transaction.

       

      (a) The
Company will offer (the “Offering”)
for sale through the Co-Placement Agents, as exclusive agents for the Company, a
minimum (the “Minimum
Amount”) of $5,820,000 of units (each, a “Unit”
and, collectively, the “Units”)
and a maximum (the “Maximum
Amount”) of $11,470,000 of Units on a reasonable efforts
basis.  Additionally, the Offering may be increased an additional 500
Units (or $5,000,000) above the Maximum Amount, at the sole discretion of the
Company (the “Over-Allotment”).  Each
Unit shall be offered and sold at a purchase price of $10,000 per Unit (the
“Unit
Price”) and shall consist of:

       

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      (i) 3,937
shares of Pubco common stock, par value $0.001 per share (the “Common
Stock”), and

       

      (ii) a warrant
(each, a “Warrant”
and collectively, the “Warrants”)
to purchase 514 shares of Common Stock (the “Warrant
Shares”).

       

      (b) The
Warrants shall be exercisable at any time and from time to time after the date
of issuance, at a per share exercise price equal to one hundred fifty (150%)
percent of the price per share of Common Stock underlying the Units (or $3.81)
and shall be exercisable for a period of five (5) years after the date of
issuance for cash only.  The Warrants shall also provide for full
ratchet anti-dilution protection.

       

      (c) The
terms, rights and privileges of the Units, Common Stock, the Warrants and the
Warrant Shares (sometimes collectively referred to herein as the “Securities”),
shall be set forth in the Company’s Confidential Private Placement Memorandum
(together, with any and all amendments, supplements, exhibits and/or appendices
thereto, and the information incorporated by reference therein collectively, the
“Memorandum”).

       

      (d) During
the one year period following the final Closing, the Company shall grant to
subscribers that purchase Units in the Offering a right of first refusal to
participate in Company financings.

       

      (e) Placement
of the Units by the Co-Placement Agents will be made on a “reasonable efforts,
all-or-none” basis with respect to the Minimum Amount.  The minimum
subscription for Units shall be one (1) Unit for $10,000 provided, however, that the
Company and the Co-Placement Agents may, in their mutual discretion, offer
fractional Units.  The Units will be offered during the period (the
“Offering
Period”) commencing on the date of the Memorandum and for the Minimum
Amount ending on November 20, 2009 (the “Expiration
Date”) unless
such date is extended as mutually agreed to by the Placement Agent and the
Company; for the Maximum Amount ending on December 21, 2009.  Whether
or not extended beyond the Expiration Date, the date on which the Offering
Period shall terminate is hereinafter referred to as the “Termination
Date.”

       

      (f) The
Placement Agent shall not tender to the Company and the Company shall not accept
subscriptions for, or sell Units to, any persons or entities who do not qualify
as “accredited
investors,” as such term is defined in Rule 501 of Regulation D
promulgated under Section 4(2) of the Securities Act of 1933, as amended (the
“Securities
Act”).

       

      (g) The
offering of the Units will be made by the Company solely pursuant to the
Memorandum and the Subscription Documents (as hereinafter defined), which at all
times will be in form and substance acceptable to the Co-Placement Agents and
their counsel and contain such legends and other information as the Co-Placement
Agents and their counsel may, from time to time, deem necessary and desirable to
be set forth therein.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (h) The
Co-Placement Agents will keep confidential and not disclose to any third party
any confidential information of the Company made available to the Co-Placement
Agents by the Company or its agents, and will use the confidential information
only in connection with the services they  provide to the Company
under this Agreement; provided, however, such
confidential information shall not include:  (i) any information
already lawfully available to or in the possession of the Co-Placement Agents
prior to the date of its disclosure to the Co-Placement Agents by the Company;
(ii) any information in the Memorandum, (iii) any information generally
available to the public; or (iv) any information that becomes available to the
Co-Placement Agents on a non-confidential basis from a third party that to the
knowledge of the Co-Placement Agents is not bound by a confidentiality
obligation to the Company; and that such confidential information may be
disclosed (i) to the Co-Placement Agents’ partners, employees, agents,
advisors, attorneys and representatives in connection with the services they
provide to the Company under this Agreement, who shall be informed of the
confidential nature of the information and that such information is subject to a
confidentiality agreement; (ii) to any person with the written consent of the
Company, including to any prospective investors; or (iii) if either of the
Co-Placement Agents is compelled to disclose such information by the order of
any Court of competent jurisdiction or any regulatory authority or stock
exchange, in which event the applicable Co-Placement Agent shall:  (A)
notify the Company promptly in writing of the existence and terms of, and
circumstances surrounding, such a request; and (B) if, upon the advice of its
outside legal counsel, disclosure of any confidential information is required,
disclose only such portion of the confidential information as is required to be
disclosed.

       

      (i) At or
prior to the date of the Memorandum, the Company and Pubco shall enter into an
agreement (the “Reverse
Transaction Agreement”) pursuant to which Pubco and the Company effect a
reverse transaction (the “Reverse
Transaction”), subject to the receipt in the Escrow Account of gross
proceeds of the Offering of not less than the Minimum Amount pursuant to
which:

       

      (i)  Ingenious
shall become a wholly owned subsidiary of Pubco;

       

      (ii) Pubco’s
sole business shall be the business of the Company;

       

      (iii) The
officers and directors of Pubco immediately prior to the Reverse Transaction
shall resign and new officers and directors shall be appointed by the
Company.

       

      2.   Subscription
and Closing Procedures.

       

      (a) Each
prospective purchaser will be required to complete and execute an investor
eligibility questionnaire, a subscription agreement and a Registration Rights
Agreement (as hereinafter defined) in the forms annexed to the Memorandum
(collectively, the “Subscription Documents”),
which will be forwarded or delivered to the applicable Co-Placement Agent at
such Co-Placement Agent’s offices at the address set forth in Section

12
hereof, together with the subscriber’s check or good funds (including wire of
funds) in the full amount of the subscription price for the number of Units
desired to be purchased.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (b) The
Subscription Documents shall direct prospective purchasers to tender funds for
subscriptions for the Offering to a non-interest bearing escrow account (the
“Escrow
Account”) established for such purpose with Signature Bank (the “Escrow
Agent”).  All funds for subscriptions received from the
Offering by the Co-Placement Agents or the Company will be promptly forwarded by
such Co-Placement Agent or the Company, as the case may be, to, and deposited
into, the Escrow Account.  All such funds for subscriptions will be
held in the Escrow Account pursuant to the terms of an escrow agreement among
the Company, the Co-Placement Agents and the Escrow Agent.  The
Company will pay all fees related to the establishment and maintenance of the
Escrow Account.  The Company will either accept or reject, for any or
no reason, the Subscription Documents in a timely fashion and at each Closing
will countersign the Subscription Documents and provide duplicate copies of such
documents to the Co-Placement Agents for distribution to the
subscribers.  The Company will give notice to the Co-Placement Agents
of its acceptance of each subscription.  The Company, or the
Co-Placement Agents on the Company’s behalf, will promptly return to subscribers
incomplete, improperly completed, improperly executed and rejected subscriptions
and give written notice thereof to the Co-Placement Agents upon such
return.

       

      (c) If
subscriptions for at least the Minimum Amount have been accepted prior to the
Expiration Date, or the Termination Date if the Co-Placement Agents and the
Company have agreed to extend the Offering Period as contemplated in Section

1(e),
the funds therefor have been collected by the Escrow Agent and all of the
conditions set forth elsewhere in this Agreement are fulfilled, a closing shall
be held with respect to those Units (the “Closing”).  Delivery
of payment for the accepted subscriptions for Units from the funds held in the
Escrow Account against delivery of the Units by the Company, will be made at the
Closing at the offices of May Davis at the address set forth in Section 
12
hereof (or at such other place as may be mutually agreed upon between the
Company and the Co-Placement Agents), net of amounts due to the Co-Placement
Agents and their blue sky counsel as of such Closing.  Executed
instruments/certificates for the Common Stock and Warrants constituting the
Units and the Agent’s Warrants (as hereinafter defined) will be in such
authorized denominations and registered in such names as the Co-Placement Agents
may request on or before the date of Closing (the “Closing
Date”), and will be made available to the Co-Placement Agents for
checking and packaging at their respective offices at the Closing.

       

      (d) If, on or
before the Termination Date (as defined below),

       

      (i) Subscription
Documents and the funds therefor equal to at least the Minimum Amount have not
been received and accepted by the Company, and

       

      (ii) all of
the conditions set forth in this Agreement or elsewhere to the closing of the
sale of at least the Minimum Amount have not been received and accepted by the
Company,

       

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      the
Offering will be terminated, no Units will be sold, and the Escrow Agent will,
upon written instructions of the Co-Placement Agents and the Company, cause all
monies received from subscribers for the Units to be promptly returned to such
subscribers without interest, penalty, expense or deduction.

      

      3.   Representations,
Warranties and Covenants of the Co-Placement Agents.  The
Co-Placement Agents hereby represent, warrant and covenant, jointly, but not
severally, to the Company that:

       

      (a) Each of
the Co-Placement Agents is registered as a broker-dealer, pursuant to the
Securities Exchange Act of 1934, as amended and the rules and regulations
promulgated thereunder (the “Exchange
Act”) and a member of the Financial Industry Regulatory Authority, Inc.
(“FINRA”).

       

      (b) The Units
will be offered and sold pursuant to the registration exemption provided by
Section 4(2) of the Securities Act and the safe harbor provided by Rule 506 of
Regulation D (“Regulation
D”) as
promulgated by the Securities and Exchange Commission (the “SEC”),
in a private placement not involving a public offering and pursuant to the
requirements, if any, of any state of the United States in which the Units are
offered or sold.

       

      (c) Each of
the Co-Placement Agents will offer Units for sale in such circumstances as is in
compliance with the securities or “blue sky” laws of the states in which the
potential investors are located based upon an examination of the statutes and
regulations, if any, of such jurisdictions as reported in standard compilations
and upon interpretive advice obtained from representatives of certain securities
commissions.

       

      4.   Representations,
Warranties and Covenants of the Company.  Each of the BCT
Companies, jointly and severally, represent, warrant and covenant to each
Co-Placement Agent that:

       

      (a) The
Memorandum has been prepared solely by the Company and conforms to the
requirements, if any, imposed by the SEC on the Company in respect of offers and
sales to accredited investors only pursuant to Rule 506 of Regulation D, and all
other applicable rules and regulations of any regulatory authority (the “Regulations”).

       

      (b) With
respect to actions taken by the Company, the Units will be offered and sold
pursuant to the registration exemption provided by Section 4(2) of the
Securities Act and the safe harbor provided by Rule 506 of Regulation D, in a
private placement not involving a public offering and pursuant to the
requirements, if any, of any state of the United States in which the Units are
offered or sold.

       

      (c) The
Memorandum describes and discloses in detail all material aspects of, among
other items, the Company, the Securities, the attendant risks of an investment
in the Company and the Securities, the business of the Company and insider
transactions and relationships, and the Company’s capitalization.  The
Company has not taken nor will it take any action which conflicts with the
conditions and requirements of, or which 

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

        would
make unavailable with respect to the Offering, the exemption from registration
available pursuant to Section 4(2) of the Securities Act and the safe harbor
provided by Rule 506 of Regulation D, and knows of no reason why any such
exemption would be otherwise unavailable to it.

      

       

      (d) The
Memorandum does not and shall not include any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.  None of the statements,
documents, certificates or other items prepared or supplied by the Company with
respect to the transactions contemplated hereby contains an untrue statement of
a material fact or omits to state a material fact necessary to make the
statements contained therein not misleading in light of the circumstances in
which they were made.

       

      (e) Except
for the compensation set forth in this Agreement, the Company is not obligated
to pay, and has not obligated either of the Co-Placement Agents to pay, a
finder’s or origination fee in connection with the Offering, and hereby agrees
to indemnify each of the Co-Placement Agents from any such claim made by any
other person as more fully set forth in herein.   Except for
negotiations with the Co-Placement Agents, the Company has not offered for sale
or solicited offers to purchase Units or any other securities. Other than the
Co-Placement Agents, no other person has any right to participate (including,
but not limited to, pre-emptive right, rights of first refusal and/or any other
rights) in any offer, sale or distribution of the Company’s and/or Pubco’s
securities.

       

      (f) All
corporate action on the part of the Company, its officers, directors, and
shareholders necessary for the (a) authorization, execution, and delivery of (i)
this Agreement, (ii) the Memorandum, (iii) the Subscription Documents, (iv) the
Reverse Transaction Agreement(v) and all other relevant documents, exhibits and
schedules (all of the foregoing documents being collectively referred to as the
“Transaction
Documents”), and (b) the performance of all obligations of the Company
hereunder and thereunder, has been taken and the Transaction Documents
constitute valid and legally binding obligations of the Company, enforceable in
accordance with their respective terms.

       

      (g) The
Company will furnish each of the Co-Placement Agents, from time to time, such
number of copies of the Memorandum, any exhibits thereto and agreements and
documents referred to therein, as either of the Co-Placement Agents may
reasonably request.

       

      (h) If any
event shall occur or condition exist as a result of which it is necessary or
advisable, in the opinion of the Company or either of the Co-Placement Agents,
to amend or supplement the Memorandum in order that the Memorandum will not
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein not misleading in light of the
circumstances existing at the time it is delivered to prospective purchasers,
the Company will forthwith prepare and furnish to each of the Co-Placement
Agents such number of 

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

         

        copies as
the Co-Placement Agents may reasonably request of an amendment or supplement to
the Memorandum (in form and substance satisfactory to the Co-Placement Agents
and their counsel) that will ensure that the Memorandum does not contain any
misstatements or omissions and is not in any respect misleading and provide the
same to offerees.

      

       

      (i) The
Company will advise the Co-Placement Agents promptly of (i) the occurrence
of any event or the existence of any condition known to the Company referred to
in (l) above hereof; (ii) the receipt by the Company of any communication
from the SEC, any state securities commissioner or any other domestic or foreign
securities or financial regulatory authority or self-regulatory organization
concerning the offering of the Securities; and (C) the commencement of any
lawsuit or proceeding to which the Company is a party relating to the Securities
or the Offering.

       

      (j) The
Company will (i) make available to each offeree of the Securities, the
Memorandum; and (ii) provide each offeree the opportunity to ask questions
of, and receive answers from, the officers and employees of the Company
concerning the terms and conditions of the Offering and to obtain any other
additional information about the Company and the Securities to the extent the
officers and employees of the Company possess the same or can acquire it without
unreasonable effort or expense and it is not otherwise confidential or trade
secret information.

       

      (k) None of
BCT Companies   are in default in the performance or observance
of any material obligation (i) under their respective charters or by-laws
(or similar constituent documentation), or any indenture, mortgage, contract,
purchase order or other agreement or instrument to which any of them is a party
or by which any of them or any of their respective properties are bound or
affected; or (ii) with respect to any order, writ, injunction or decree of
any court of any Federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, and
there exists no condition, event or act which constitutes, nor which after
notice, the lapse of time or both, could constitute a default under any of the
foregoing, which in either case would have a material adverse effect on the
business, including proposed business, and prospects of the
Company.

       

      (l) Each of
the BCT Companies has full right, power and authority to execute and deliver
this Agreement, the other Transaction Documents, any document, certificate or
instrument required hereunder or to be executed or delivered at any Closing in
connection with the Offering, and to perform all of their respective obligations
hereunder and thereunder or contemplated hereby or thereby. The Transaction
Documents and other documents have been, or will be, duly executed and delivered
by the applicable BCT Company and the execution and delivery by the applicable
BCT Company of the Transaction Documents and the performance of all of
their  respective obligations will be duly authorized by all requisite
corporate action by the applicable BCT Company, and each other document
(assuming the due authorization and execution of the other parties thereto)
executed and delivered and obligation performed constitutes, or will constitute,
the legal, valid and binding obligation of the applicable BCT Company
enforceable in accordance with its respective terms.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      (m) The
(i) authorization, execution, delivery and performance of the Transaction
Documents will not, to the best of the Company’s knowledge, (1) violate any
provision of law or statute or any order of any court or other governmental
agency applicable to any BCT Company, or (2) conflict with or result in
any  breach of any of the terms, conditions or provisions of, or
constitute (with due notice or lapse of time or both) a default under, or result
in the creation of any material lien, security interest, charge or encumbrance
upon any of the properties or assets of any BCT Company under their respective
charters or by-laws, or any indenture, mortgage, lease agreement or other
material agreement or instrument to which any BCT Company is a party or by which
they or any of their respective properties are bound or affected except for
violations, conflicts breaches and defaults that would not, individually or in
the aggregate materially and adversely affect the Company, the Co-Placement
Agents or any investor.

       

      (n) 

No permit, consent, approval,
authorization, order of, or filing with, any court or governmental authority is
required in connection with the execution and delivery by the BCT Companies of
this Agreement or to consummate the Offering.

       

      (o) There is
no action, suit or proceeding before or by any United States  or
non-United States court or governmental agency or body, now pending or, to the
knowledge of the Company, threatened against or affecting any BCT Company, or
any of their properties, which would reasonably be anticipated to result in any
material adverse change in the condition (financial or otherwise) or in the
earnings, prospects and business of the Company, the business plan as described
in the Memorandum, and the properties or assets of the Company taken as a whole
( together, a “Material
Adverse Effect”).

       

      (p) The
Company has (i) duly and timely filed all tax returns required to be filed
by the Company under applicable law that include or relate to the Company, its
income, assets, payroll, operations or business, which tax returns are true,
correct and complete in all material respects; (ii) duly and timely paid,
in full, all taxes which are currently due and payable and for which the Company
is liable; or (iii) adequately reserved for taxes that have not been paid or are
in dispute.

       

      (q) The
Company, to the best of its knowledge, is not in default under any agreement,
lease, license contract or commitment, whether oral or written including,
without limitation, agreements including and related to the Reverse Transaction,
consulting agreements with non-Company personnel, or with employees and
consultants (the “Company
Agreement(s)”), to which the Company is a party or by which any of its
assets are bound, and there is no event known to the Company that, with notice,
or lapse of time, or both, would constitute a default by any party to any
Company Agreement or give any party the right to terminate or modify any of the
same and the Company has not received notice that any party to any Company
Agreement intends to cancel or terminate any Company Agreement or to exercise or
not to exercise any renewal or extension options under any Company Agreement,
except as to any events described in this subparagraph that would not have a
Material Adverse Effect;

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (r) The
Company holds, and is in compliance with, all permits, licenses, registrations
and authorizations required by it in connection with the conduct of the business
of the Company as currently conducted under all domestic and foreign, Federal,
state and local laws, rules and regulations (the “Permits”),
except where the failure to be in compliance has not had, and is not reasonably
expected to have, a Material Adverse Effect;

       

      (s) The
Company’s financial statements included in the Memorandum and those filed with
the Securities and Exchange Commission will be true and correct and fairly
present, in accordance with generally accepted accounting principles,
consistently applied, the financial condition of the Company as of the dates
specified;

       

      (t) Since
December 31, 2006, the Company has conducted its business in the ordinary
course and has not suffered any Material Adverse Effect. The Company does not
have any liabilities or obligations

 (whether actual or accrued,
accruing or contingent, or otherwise) which, individually or in aggregate, would
be deemed material, other than those set forth in the balance sheet included
within the financial statements included in the Memorandum, and those incurred,
in the ordinary course of its business, since December 31,
2008.

       

      (u) The
capitalization of the Company shall be correctly and completely described in the
Memorandum and, except as shall be disclosed therein, no person has any right of
first refusal, pre-emptive right, right of participation, or any similar right
to participate in the transactions contemplated by the
Documents.  There are no outstanding options, warrants, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exchangeable for, or
giving any person any right to subscribe for or acquire, any shares of capital
stock of the Company, or contracts, commitments, understandings or arrangements
by which the Company is or may become bound to shares of capital stock of the
Company, except as shall be reflected in the capitalization tables included in
the Memorandum.  All of the outstanding shares of capital stock of the
Company have been validly issued, fully paid and nonassessable, have been issued
in compliance with all federal and state securities laws, and none of such
outstanding interests was issued in violation of any pre-emptive rights or
similar rights to subscribe for or purchase securities.

       

      (v) The
Company has rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses and
other similar rights that are necessary or material for use in connection with
its business (collectively, the “Intellectual
Property Rights”), except to the extent that the failure to have such
Intellectual Property Rights, individually or in the aggregate, would not have
or reasonably be expected to result in a Material Adverse Effect.  No
claims have been made or threatened by any third party to the effect that
Intellectual Property Rights used by the Company violate or infringe upon the
rights of such claimant.  To the actual knowledge of the Company, all
of the Intellectual Property Rights are enforceable and there is no existing
infringement by another person of any of the Intellectual Property
Rights.

       

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (w) At the
Closing, the Company will deliver, or cause to be delivered, to the Co-Placement
Agents, in each case in form and substance satisfactory to the Co-Placement
Agents and their counsel: (i) a certificate of the Company signed by the
Chief Executive Officer and the Chief Financial Officer thereof certifying
(1) that the representations and warranties of the Company contained in
this Agreement are true and accurate in all material respects as of the Closing;
and, (2)  that the representations and warranties of the Company contained
in each subscription agreement entered into with a prospective purchaser of the
Securities are true and correct in all material respects as of the date of such
certificate, except to the extent any such representation or warranty was
expressly made as of any other date, in which case such representation and
warranty was true and correct in all material respects as of such other date;
and at the Closing, and (ii) an opinion of the Company’s PRC, Hong Kong, British
Virgin Islands and domestic legal counsel, in form and substance reasonably
satisfactory to the Co-Placement Agents.

       

      (x) The
Company further agrees that it will not consummate the Offering unless it
delivers or causes to be delivered the items described herein to the Placement
Agent at the Closing.  The consummation of the offering and the
release of the purchaser funds to the Company shall be further subject to the
completion of the Closing.

       

      (y) The
Company will be responsible for and comply with all applicable notification and
fee requirements to qualify the Offering  under the state securities
or “blue sky” laws of such jurisdiction in which any sales pursuant to the
offering may be transacted and as may otherwise be required or as requested by
either of the Co-Placement Agents provided that, in connection therewith, the
Company shall not be required to qualify as a foreign corporation.

       

      (z) The
Company will take all such action as may be required to provide that the
subsidiaries, affiliates and parent entities within the Company group will not
offer or sell any securities in circumvention of this Agreement.

       

      5.   Representations,
Warranties and Covenants of Pubco.  Pubco represents, warrants
and covenants to each Co-Placement Agent that:

       

      (a) All
corporate action on the part of Pubco, its officers, directors, and shareholders
necessary for the (A) authorization, execution, and delivery of (1) the Common
Stock, (2) the Warrants, (3) the Escrow Agreement, (4) the Warrant Shares and
all other relevant documents, and (B) the performance of all obligations of
Pubco under any of the Transaction Documents, and (C) the authorization,
issuance (or reservation for issuance), and delivery of the Securities has been
taken and the Transaction Documents to which Pubco is a party constitute valid
and legally binding obligations of Pubco, enforceable in accordance with their
respective terms.

       

      (b) The
Securities when issued and delivered in accordance with the terms of the
Subscription Documents and this Agreement will be duly and validly
issued.  The Common Stock, Warrants and Warrant Shares have been duly
and validly authorized and, when issued and delivered in accordance with the
terms of this Agreement, will be duly and validly issued, fully paid and
non-assessable.  The holders of the Securities will not be subject to
personal liability by reason of being such holders and will not be subject to
the preemptive rights of any holders of any security of Pubco or similar
contractual rights granted by Pubco.

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      (c) Immediately
prior to the Closing, the Agent’s Warrants (as defined in Section

6(e)
hereof) to be issued at such Closing, and all other aspects of compensation
and/or expenses to be paid to the Co-Placement Agents, will have been duly and
validly authorized by Pubco.  No holder of any of the Agent’s Warrants
will be subject to personal liability solely by reason of being such a holder,
and none of the Agent’s Warrants (or underlying securities), are or will be
subject to preemptive rights, right of first refusal and/or other similar
rights.  Neither the issue of the Securities, the Agent Warrants, nor
the Common Stock issuable upon exercise of the Agent Warrants will cause an
adjustment under anti-dilution or exercise rights of any holders of any
outstanding shares of capital stock, options, warrants or other rights to
acquire any securities of Pubco.  Immediately prior to the Closing, a
sufficient number of authorized but unissued shares of Common Stock will have
been reserved for full issuance upon the exercise of the Agent’s Warrants and
the Warrants.

       

      (d) Pubco’s
common stock is eligible for quotation on the Over-the-Counter Bulletin Board
under the symbol “PDNK.”  Pubco has received no notice and has no
reason to believe the Common Stock will not continue to be eligible for
quotation on the OTCBB.

       

      (e) Pubco has
not been subject to any order, judgment or decree of any court of competent
jurisdiction temporarily, preliminary or permanently enjoining such person for
failing to comply with Section 503 of Regulation D or with any other
United States securities laws, rules and regulations.

       

      (f) Pubco has
filed all SEC reports required to be filed of it and is current in its reporting
requirements.  All Pubco SEC reports when made did not contain any
false or misleading statements.

       

      (g) For the
benefit of the Co-Placement Agents, Pubco hereby incorporates by reference all
of its representations and warranties as set forth in the Reverse Transaction
Agreement with the same force and effect as if specifically set forth herein.

       

      6.   Co-Placement Agent
Appointment and Compensation.

       

      (a) The
Company and Pubco hereby appoint the Co-Placement Agents as their exclusive
agents in connection with the Offering.  The Company and Pubco
acknowledge that the Co-Placement Agents may use selected dealers (the “Selected
Dealers”) that are members of the Financial Industry Regulatory Authority
(“FINRA”)
to fulfill their agency hereunder provided that such dealers are compensated
solely by the Co-Placement Agents.  Without the prior written consent
of the Co-Placement Agent, the Company has not and will not make, or permit to
be made, any offers or sales of the Units, other than through the Co-Placement
Agents.  The Co-Placement Agents have no obligation to purchase any of
the Units.  The agency of the Co-Placement Agents hereunder shall
continue until the later of the Termination Date and the Closing.

       

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      (b) The
Company will cause to be delivered to the Co-Placement Agents copies of the
Memorandum and has consented, and hereby consents, to the use of such copies for
the purposes permitted by the Securities Act and applicable securities laws, and
hereby authorizes the Co-Placement Agents and their respective agents, employees
and selected dealers to use the Memorandum in connection with the offering and
sale of the Units until the earlier of the Closing and the Termination Date, and
no other person or entity is or will be authorized to give any information or
make any representations other than those contained in the Memorandum or to use
any offering materials other than those contained in the Memorandum in
connection with the sale of the Units.

       

      (c) The
Company will cooperate with the Co-Placement Agents by making available to their
representatives such information as may be requested in making a reasonable
investigation of the Company and its affairs and shall provide access to such
employees as shall be reasonably requested.

       

      (d) As
compensation for its services under this Agreement, at the Closing (or any
subsequent closings), the Co-Placement Agents will receive:

       

      (i) a cash fee (the “Selling
Commissions”)
equal to the sum of ten (10%) percent of the net proceeds of the Offering
released to the Company and received from investors that purchase Units;
and

       

      (ii) a
non-accountable marketing allowance of three (3%) percent of the net proceeds of
the Offering released to the Company (the “Non-Accountable
Allowance”).

       

      The Selling Commissions and
Non-Accountable Allowance are sometimes collectively referred to herein as the
“Agent’s
Fee.”

      

      (e) As
additional compensation hereunder, at the Closing the Company will issue to the
Co-Placement Agents or their designees, for nominal consideration, warrants
(“Agent’s
Warrants”) to purchase ten (10%) percent of the gross number of Common
Shares sold at the Closing (including any Over-Allotment accepted by the Company
but not including the Warrant Shares).  The Agent’s Warrants shall
have an initial per share exercise price equal to one hundred twenty (120%)
percent of the price per share of Common Stock underlying the Units ($3.05),
subject to adjustment.  Each of the Co-Placement Agents will be
permitted to transfer some or all of their Agent’s Warrants to their affiliates,
registered representatives and to Selected Dealers who participate with the
Co-Placement Agents in the Offering.  The Agent’s Warrants and the
Agent’s Fee are sometimes collectively referred to herein as the “Agent’s
Compensation.”  The Agent’s
Warrants shall be exercisable, at any time and from time to time for period of 5
years after the date of issuance.  The Agent’s Warrants shall contain
an immediate cashless exercise provision and shall contain the same
anti-dilution provisions as are included in the Warrants.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      (f) The
Company shall pay all of the Co-Placement Agent’s expenses in connection with
the Offering, including, but not limited to, long distance telephone calls,
filing fees, mail, overnight packages, copying, and printing and shall pay up to
$100,000 of the Co-Placement Agent’s legal fees (excluding all expenses relating
to Blue Sky work and FINRA filings which will be additional
charges).  In addition, the Company shall reimburse each of the
Co-Placement Agents for all reasonable professional consulting fees, including
travel to visit the Company’s facilities, not to exceed $20,000, in the
aggregate.  Upon closing of the Offering, all the above fees and
expenses of the Co-Placement Agents will be paid by the Company immediately upon
request by the Co-Placement Agents.  At the Closing, the Company shall
pay to May Davis a one-time due diligence fee of $50,000.

       

      (g) Right of
First Refusal.  The Company will grant the Co-Placement Agents
a right of first refusal for a period of twelve (12) months from the date hereof
to act as exclusive placement agents on any future private placement of the
Company’s securities or as lead managing underwriters on any public offering of
the Company’s securities.  It is understood that if a third (3rd)
party provides the Company with written terms with respect to a future
securities offering and/or sale (“Written
Offering Terms”), the Company shall promptly present same to the
Co-Placement Agents.  Each of the Co-Placement Agents shall have ten
(10) business days from its actual receipt of the Written Offering Terms in
which to determine whether or not to accept such offer.  If both of
the Co-Placement Agents refuse, and provided that such financing is consummated
with another placement agent or underwriter upon the same or better terms as the
Written Offering Terms, the Company may elect to use another broker/dealer, but
in no event shall such use of another broker/dealer result in the Co-Placement
Agents waiving and/or forfeiting its right of first refusal for subsequent
Company offerings of its securities.

       

      7.   Covenants
of the Company. The Company hereby covenants and agrees
that:

       

      (a) Except
with the prior written consent of the Co-Placement Agents, the Company shall
not, at any time prior to the Closing, take any action which would cause any of
the representations, warranties and covenants made by it in this Agreement, the
Memorandum or the Subscription Documents not to be complete, accurate and
correct in any material respect on and as of the Closing Date with the same
force and effect as if such representations, warranties and covenants had been
made on and as of such date.

       

      (b) If, at
any time prior to the Closing:

       

      (i) any event
shall occur which materially affects the Company or as a result of which it
might become necessary to amend or supplement the Memorandum so that the
representations, warranties and covenants contained herein or in the Transaction
Documents remain materially true; or

       

      (ii) in case
it shall, in the opinion of counsel to the Co-Placement Agents and the Company,
be necessary to amend or supplement the Memorandum to comply with Regulation D
or any other applicable securities laws or regulations,

       

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      the
Company shall, in the case of (i) above,
promptly notify the Co-Placement Agents and, in the event of either (i) or (ii) above shall, at its sole cost, prepare
and furnish to the Co-Placement Agents copies of appropriate amendments and/or
supplements to the Memorandum in such quantities as the Co-Placement Agents may
request.  The Company shall not at any time, whether before or after
the Closing, prepare or use any amendment or supplement to the Memorandum of
which the Co-Placement Agents shall not previously have been advised and
furnished with a copy, or to which the Co-Placement Agents or their counsel will
have reasonably objected in writing or orally (confirmed in writing within 72
hours), or which is not in compliance in all material respects with the
Securities Act, the Regulations and other applicable securities laws. As soon as
the Company is advised thereof, the Company shall advise the C-Placement Agents
and their counsel, and confirm the advice in writing, of any order preventing or
suspending the use of the Memorandum, or the suspension of the qualification or
registration of the Securities for offering or the suspension of any exemption
for such qualification or registration of the Securities for offering in any
jurisdiction, or of the institution or threatened institution of any proceedings
for any of such purposes, and the Company shall use its best efforts to prevent
the issuance of any such order and, if issued, to obtain as soon as reasonably
possible the lifting thereof.

      

      (c) The
Company shall comply with the Securities Act, the Regulations, the Exchange Act,
all applicable state securities laws and the rules and regulations thereunder in
the states in which the Co-Placement Agents’ counsel has advised the
Co-Placement Agents that the Units are qualified or registered for sale or
exempt from such qualification or registration, so as to permit the continuance
of the sales of the Units, and will file with the SEC, and shall promptly
thereafter forward to the Co-Placement Agents, any and all reports on Form D as
are required.

       

      (d) The
Company shall use its commercial best efforts to qualify the Units for sale (or
seek exemption therefrom) under the securities laws of such jurisdictions in the
United States as may be mutually agreed to by the Company and the Co-Placement
Agents, and the Company shall make such applications and furnish information as
may be required for such purposes, provided that the Company shall not be
required to qualify as a foreign corporation in any jurisdiction.  The
Company shall, from time to time, prepare and file such statements and reports
as are or may be required to continue such qualifications in effect for so long
a period as the Co-Placement Agents may reasonably request.

       

      (e) The
Company shall place a legend on the certificates representing the Common Stock,
Warrants and the Warrant Shares issued to subscribers stating that the
securities evidenced thereby have not been registered under the Securities Act
or applicable state securities laws, setting forth or referring to the
applicable restrictions on transferability and sale of such securities under the
Securities Act and applicable state laws.

       

      (f) The
Company shall apply the net proceeds from the sale of the Units for such
purposes as are specifically described in the “Use of
Proceeds” section of the Memorandum.  Except as may be
expressly and specifically set forth in the “Use of 

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

         

        Proceeds”
section of the Memorandum, the net proceeds of the Offering shall not be used to
pay any obligation and/or repay indebtedness of the Company, including, without
limitation, indebtedness to officers, directors or stockholders of the Company
without the prior written consent of the Co-Placement Agents.

      

       

      (g) During
the Offering Period, the Company shall afford prospective purchasers of Units an
opportunity to ask questions of and receive answers from an officer of the
Company concerning the terms and conditions of the Offering and the opportunity
to obtain such other additional information necessary to verify the accuracy of
the Memorandum to the extent it possesses such information or can acquire it
without unreasonable expense.

       

      (h) Except
with the prior written consent of the Co-Placement Agents (which consent shall
not be unreasonably withheld) or as expressly disclosed in the Memorandum, the
Company shall not, at any time prior to the Termination Date, engage in or
commit to engage in any transaction outside the ordinary course of business or
issue, agree to issue or set aside for issuance any securities (debt or equity)
or any rights to acquire any such securities except as expressly set forth in
the Memorandum.

       

      (i) Until the
Termination Date, neither the Company nor any person or entity acting on its
behalf shall negotiate with any other placement agent or underwriter with
respect to a private or public offering of the Company’s debt or equity
securities in the United States except to the extent that such a negotiation is
contemplated in the Memorandum.  Neither the Company nor anyone acting
on its behalf shall, until the Termination Date, offer for sale to, or solicit
offers to subscribe for Units from, or otherwise approach or negotiate in
respect thereof with any other person.

       

      (j) Until the
earlier of (i) the Termination Date and (ii) the Closing, the Company will not
issue any press release, grant any interview, or otherwise communicate with the
media in any manner whatsoever without the Co-Placement Agents’ express prior
written consent, unless in the reasonable judgment of the Company and its
counsel, and after notification to the Co-Placement Agents, such press release
or other communication is required by law.

       

      (k) The
Company shall pay all expenses incurred in connection with the preparation and
printing of all necessary offering documents, amendments, and instruments
related to the Offering and the issuance of the Units, the Securities, the
Warrant Shares and the Agent’s Warrants, and shall also pay its own expenses for
accounting fees, legal fees, bound volumes of closing documents, and other costs
involved with the Offering. The Company shall provide at its own expense such
quantities of the Memorandum and other documents and instruments relating to the
Offering as the Co-Placement Agents may reasonably request.  In
addition, the Company shall pay all filing fees and costs for Blue Sky services
and related filings and expenses of the Co-Placement Agents’ counsel with
respect to Blue Sky exemptions (collectively, the “Blue Sky
Expenses”), which shall be paid to the Co-Placement Agents’ counsel upon
the First Closing (or upon demand by the Co-Placement Agents if a First Closing
does not incur within a reasonable period of time).  Additional Blue
Sky Expenses incurred 

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

         

        after the
First Closing, if any, shall be paid at any subsequent Closing, as
applicable.  The Blue Sky filings shall be prepared by the
Co-Placement Agents’ counsel for the Company’s account.  Further, as
promptly as practicable after the Closing, the Company shall prepare, at its own
expense, velobound "closing binders" relating to the Offering and will
distribute such binders to the individuals designated by counsel to the
Co-Placement Agents.  Lastly, upon a determination by the Co-Placement
Agents that one or more FINRA Rule 2710 filings are required, the Company will
pay all filing fees costs and expenses in connection with such filing to be
prepared by the Co-Placement Agents’ counsel.

      

       

      (l) On or
before the Closing Date, the Company shall deliver to the Co-Placement Agents,
lock up agreements (the “Lock Up
Agreements”) executed by among others, (i) the original shareholders of
BCT; and (ii) the original shareholder of Forever Well (collectively, the “Shareholders”)
pursuant to which the Shareholders shall be prohibited from selling any shares
of stock of the Company for a period of one year after the effective date of the
Registration Statement.

       

      (i) Effective
as of the Closing Date, the Co-Placement Agents (and/or their designee) shall
have the right to nominate, and the Company shall use its best efforts to have
appointed, one (1) person (the “Placement
Agent Director”) to serve as a member of Pubco’s Board of
Directors.  The Company covenants and agrees to take, or to cause to
be taken on its behalf, all action necessary and/or reasonably requested by the
Co-Placement Agents to cause the Placement Agent Director to be appointed to the
Board of Directors within ten (10) business days of the Placement Agent’s
nomination of such person.  The Placement Agent Director’s appointment
to Pubco’s Board of Directors shall be for a period of two (2) years commencing
on the date of such person’s appointment to the Board of Directors.

       

      (ii) In the
event that at any time and/or from time to time, a Placement Agent Director is
not serving as a Director on Pubco’s Board of Directors for any reason or no
reason, then the Placement Agent may designate one (1) person (the “Observer”)
to attend all meetings (including telephone meetings) of Pubco’s Board of
Directors for a two (2) year period, commencing on the Closing
Date.  The Observer shall be entitled to attend all such meetings and
to receive all notices and other correspondence and communications sent by Pubco
to its Board of Directors as when and in the same manner as provided to the
other Directors; provided, however, the Observer
shall agree to hold in confidence and trust and to act in a fiduciary manner
with respect to all information so provided; and provided, further, that Pubco
reserves the right to withhold any information and to exclude the Observer from
any meeting or portion thereof if access to such information or attendance at
such meeting could adversely affect the attorney-client privilege between Pubco
and its counsel or result in disclosure of trade secrets or a conflict of
interest, or if the Observer is a competitor of Pubco.

       

      (m) During
the one (1) year period following the final Closing, the Company shall not file
and/or issue any shares of Common Stock pursuant to an S-8 Registration
Statement.

       

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      (n) Registration
Rights.

       

      (i) The
Company will grant to each investor that purchases Units in the Offering the
registration rights (including penalty provisions), set forth in the
registration rights agreements (the “Registration
Rights Agreements”) by and between the Company and each of the
investors.

       

      (ii) The
Placement Agent (and any Selected Dealers participating in the Offering) shall
be afforded registration rights identical to those afforded to investors in the
Registration Rights Agreements with respect to the Common Stock issuable upon
exercise of the Agent Warrants, except for the delinquent filing and
effectiveness cash penalties afforded such investors thereunder, and such
registration rights shall be subject applicable Rule 415 limitations and other
applicable SEC Guidance.

       

      (o) The
Company will hire within sixty (60) days after the Closing a bilingual Chief
Financial Officer, fluent in English.

       

      (p) The
Company will retain an experienced PCAOB auditor with prior China public company
experience within thirty (30) days after to the Closing.

       

      (q) The
Company will begin discussion with an investor relations/public relations firm,
reasonably acceptable to the Co-Placement Agents, within a reasonable time after
the Closing, not to exceed 60 days after the Closing and shall retain such
investor relations/public relations firm at such time as there is an effective
registration statement or the Common Stock is available for resale under Rule
144.  The Company shall agree to escrow $150,000 of the Offering net
proceeds for the Co-Placement Agents to pay such firm.

       

      (r) The
Company and the Co-Placement Agents shall negotiate a make good agreement (the
“Make Good
Agreement”) based on Twenty Six Million Dollars ($26,000,000) recurring
operating net income before extraordinary gains and excluding non-cash expenses
for the year ending December 31, 2010.  At the Closing, the management
of the Company shall place in escrow management’s shares, in aggregate equal to
Four Million (4,000,000) shares of the Company’s Common Stock under the Make
Good provisions in the Subscription Agreement.

       

      (s) Commencing
on the date hereof, and for the two year period following the Closing, the
Company shall not pay any dividends and/or increase the compensation of its
officers.

       

      (t) Immediately
after the Closing, the Company shall use its best efforts to have its Common
Stock listed on Nasdaq or NYSE Amex Equities as soon as
practicable.

       

      8.   Conditions
of Co-Placement Agents’ Obligations.  The obligations of the
Co-Placement Agents hereunder are subject to the fulfillment, at or before the
Closing, of the following additional conditions:

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      (a) Each of
the representations and warranties made by the Company herein shall be true and
correct in all material respects at all times prior to and on the Closing Date,
except to the extent any such representation or warranty expressly speaks as of
an earlier date.

       

      (b) The
Company shall have performed and complied in all material respects with all
agreements, covenants and conditions required to be performed by and complied
with it under the Transaction Documents at or before the Closing.

       

      (c) No order
suspending the use of the Memorandum or enjoining the offering or sale of the
Units shall have been issued, and no proceedings for that purpose or a similar
purpose shall have been initiated or pending, or, to the best of the Company’s
knowledge, are contemplated or threatened.

       

      (d) The
Co-Placement Agents shall have received certificates of the Chief Executive
Officer and Chief Financial Officer of the Company, dated as of the Closing
Date, certifying, in such detail as the Co-Placement Agents may reasonably
request, as to the fulfillment of the conditions set forth in paragraphs (a),
(b) and (c) above.

       

      (e) The
Company shall have delivered to the Co-Placement Agents on the Closing
Date:

       

      (i) a good
standing certificate with respect to each of the BCT Companies and Pubco
certified by the secretary of state of their respective jurisdictions of
incorporation and each jurisdiction in which each of them is qualified to do
business as a foreign corporation dated no earlier than five business days prior
to the Closing Date;

       

      (ii) certified
resolutions of the Company’s Board of Directors approving this Agreement and the
other Transaction Documents, and the transactions and agreements contemplated by
this Agreement and the other Transaction Documents;

       

      (iii) the Lock
Up Agreements; and

       

      (iv) the
Reverse Transaction Documents.

       

      (f) On or
prior to the date hereof and at the Closing, either the Chief Executive Officer
or the Chief Financial Officer of the Company shall have provided a certificate
to the Co-Placement Agents confirming that there have been no undisclosed
material and adverse changes in the condition (financial or otherwise) or
prospects of the Company from the date of the Memorandum, the absence of
undisclosed liabilities and such other matters relating to the financial
condition and prospects of the Company that the Co-Placement Agents may
reasonably request.

       

      (g) At the
Closing, the Company shall pay and deliver to the Co-Placement Agents the
Agent’s Fee, calculated in accordance with Section
6(d)
and, if applicable, the Blue Sky Expenses in accordance with Section

7(k)
hereof.

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

       

      (h) At the
Closing, the Company shall have delivered to the Co-Placement Agents and/or
their respective designees, the appropriate number of Agent’s Warrants,
calculated in accordance with Section

6(e) hereof.

       

      (i) There
shall have been delivered to the Co-Placement Agents a signed opinion of the
Company’s PRC, Hong Kong, British Virgin Islands and domestic legal counsel,
dated as of each Closing Date, in the form mutually agreed upon by the Company
and the Co-Placement Agents.

       

      (j) At the
Closing, each officer, director and significant shareholder of the Company shall
deliver to the Placement Agent a 10b-5 Letter, in form and substance
satisfactory to the Company and the Co-Placement Agents, signed and executed by
each such person.

       

      (k) All
proceedings taken at or prior to the Closing in connection with the
authorization, issuance and sale of the Securities and the Agent’s Warrants will
be reasonably satisfactory in form and substance to the Co-Placement Agents and
their counsel, and such counsel shall have been furnished with all such
documents, certificates and opinions as it may reasonably request upon
reasonable prior notice in connection with the transactions contemplated
hereby.

       

      9.   Indemnification
and Contribution.

       

      (a) Indemnification
of the Placement Agent by the Company.  The Company agrees to
indemnify and hold harmless the Co-Placement Agents and each person, if any, who
controls either of the Co-Placement Agents within the meaning of the Securities
Act and/or the Exchange Act against any losses, claims, damages or liabilities,
joint or several, to which such Co-Placement Agent or controlling person may
become subject, under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon (i) any untrue statement or alleged untrue statement of a
material fact contained (A) in the Transaction Documents, or (B) in
any blue sky application or other document executed by the Company specifically
for blue sky purposes or based upon any other written information furnished by
the Company or on its behalf to any state or other jurisdiction in order to
qualify any or all of the Securities under the securities laws thereof (any such
application, document or information being hereinafter called a “Blue Sky
Application”), (ii) any breach by the Company of any of its
representations, warranties or covenants contained herein or in any of the
Transaction Documents, (iii) the omission or alleged omission by the
Company to state in the Transaction Documents or in any Blue Sky Application a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading or (iv) any liability incurred by a Co-Placement Agent arising from
the Escrow Agreement between the Company, the Escrow Agent and the Co-Placement
Agents not due to a Co-Placement Agent Non-Indemnity Event (hereinafter
defined); and will reimburse such Co-Placement Agent and each such controlling
person for any legal or other expenses reasonably incurred by the Co-Placement
Agent or such controlling person in connection with investigating or defending
any such loss, claim, damage, liability or action, whether 

       

      
        
           

        

        
          19

          
            

          

        

        
           

        

         

        arising
out of an action between the Co-Placement Agent and the Company or the
Co-Placement Agent and a third party; provided, however, that the Company will
not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon (i) an untrue statement or
omission made in reliance upon and in conformity with written information
regarding such Co-Placement Agent that is furnished to the Company by such
Co-Placement Agent specifically for inclusion in the Offering Documents or any
such Blue Sky Application or (ii) any breach by such Co-Placement Agent of
the representations, warranties or covenants contained herein (together, (i) and
(ii) above are referred to as the “Placement
Agent Non-Indemnity Events”).

      

       

      (b) Indemnification
of the Selected Dealers by the Company.  The Company agrees to
indemnify and hold harmless each Selected Dealer and each person, if any, who
controls a Selected Dealer within the meaning of the Securities Act and/or the
Exchange Act against any losses, claims, damages or liabilities, joint or
several, to which such Selected Dealer or controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
(i) any untrue statement or alleged untrue statement of a material fact
contained (A) in the Offering Documents, or (B) in any Blue Sky Application,
(ii) any breach by the Company of any of its representations, warranties or
covenants contained herein or in any of the Offering Documents, or (iii) the
omission or alleged omission by the Company to state in the Offering Documents
or in any Blue Sky Application a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; and will reimburse each Selected Dealer
and each such controlling person for any legal or other expenses reasonably
incurred by such Selected Dealer or controlling person in connection with
investigating or defending any such loss, claim, damage, liability or action,
whether arising out of an action between such Selected Dealer and the Company or
such Selected Dealer and a third party; provided, however, that the Company will
not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon (i) an untrue statement or omission
made in reliance upon and in conformity with written information regarding such
Selected Dealer specifically for inclusion in the Offering Documents or any such
Blue Sky Application or (ii) any breach by such Selected Dealer of the
representations, warranties or covenants contained herein (together, (i) and
(ii) above are referred to as the “Selected
Dealer Non-Indemnity Events”).

       

      (c) Procedure.  Promptly
after receipt by an indemnified party under this Section
9 of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this
Section  9,
notify in writing the indemnifying party of the commencement thereof; and the
omission so to notify the indemnifying party will not relieve the indemnifying
party from any liability under this Section  9 
as to the particular item for which indemnification is then being sought, except
and to the extent that the indemnifying party is materially prejudiced thereby,
from any other liability that it may have to any indemnified
party.  In case any such action is brought against any indemnified
party, and it notifies an indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein, and to the extent
that it may wish, jointly with any other 

       

      
        
           

        

        
          20

          
            

          

        

        
           

        

         

        indemnifying
party, similarly notified, to assume the defense thereof, with counsel who shall
be to the reasonable satisfaction of such indemnified party, and after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Section  9
for any legal or other expenses subsequently incurred by such indemnified party
in connection with the defense thereof other than reasonable costs of
investigation.  Any such indemnifying party shall not be liable to any
such indemnified party on account of any settlement of any claim or action
effected without the consent of such indemnifying party.

      

       

      (d) Contribution.  If
the indemnification provided for in this Section  9
is unavailable to any indemnified party (other than as a result of the failure
to notify the indemnifying party as provided in Section
9(c)
above) in respect to any losses, claims, damages, liabilities or expenses
referred to therein, then the indemnifying party, in lieu of indemnifying such
indemnified party, will contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities or
expenses (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand, and the applicable
Co-Placement Agent or Selected Dealer, on the other hand, from the Offering, or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above, but also the relative fault
of the Company, on the one hand, and of the applicable Co-Placement Agent or
Selected Dealer, on the other hand, in connection with the statements or
omissions that resulted in such losses, claims, damages, liabilities or expenses
as well as any other relevant equitable considerations.  The relative
benefits received by the Company, on the one hand, and the applicable
Co-Placement Agent or Selected Dealer, on the other hand, shall be deemed to be
in the same proportion as the total proceeds from the Offering received by the
Company bear to the commissions received by the applicable Co-Placement Agent or
Selected Dealer.  The relative fault of the Company, on the one hand,
and the applicable Co-Placement Agent or Selected Dealer, on the other hand,
will be determined with reference to, among other things, whether the untrue or
statement of a material fact or the omission to state a material fact relates to
information supplied by the Company, on the one hand, and the applicable
Co-Placement Agent or Selected Dealer, on the other hand, and their relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  Notwithstanding the foregoing, the
applicable Co-Placement Agent’s obligations under this Section
8
(d)
shall not exceed the actual commissions received by the applicable Co-Placement
Agent.

       

      (e) Equitable
Considerations.  The Company, the Co-Placement Agents and each
Selected Dealer agree that it would not be just and equitable if contribution
pursuant to this Section

9
were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the
immediately preceding paragraph.

       

      (f) Attorneys’
Fees.  The amount payable by a party under this Section 
9
as a result of the losses, claims, damages, liabilities or expenses referred to
above will be deemed to include any reasonable legal or other fees or expenses
reasonably incurred by 

       

      
        
           

        

        
          21

          
            

          

        

        
           

        

         

        such
party in connection with investigating or defending any action or claim
(including, without limitation, fees and disbursements of counsel incurred by an
indemnified party in any action or proceeding between the indemnifying party and
indemnified party or between the indemnified party and any third party or
otherwise).  Notwithstanding the foregoing, with respect to any third
party action, fees and disbursements of separate counsel for the indemnified
party shall only be paid by the indemnifying party if there is a conflict of
interest between the indemnified party and the indemnifying party and, in such,
case, only with respect to one counsel for all the indemnified
parties.

      

       

      10.   Termination.

       

      (a) The
Offering may be terminated by the Co-Placement Agents at any time prior to the
Termination Date in the event that:

       

      (i) any of
the representations, warranties or covenants of the Company contained herein, in
the Memorandum or in any other Transaction Document shall prove to have been
false or misleading in any material respect when actually made;

       

      (ii) the
Company shall have failed to perform any of its material obligations hereunder
or under any other Transaction Documents; or

       

      (iii) there
shall occur any event which could materially adversely affect the transactions
contemplated hereby or the other Transaction Documents or the ability of the
Company to perform thereunder.

       

      (b) If this
Offering expires on the Termination Date due to the failure to raise the Minimum
Amount, the Co-Placement Agents shall be entitled to reimbursement for all of
their out of pocket expenses, including, but not limited to, all legal fees and
expenses of its counsel.

       

      (c) Upon any
such termination, the Co-Placement Agents and the Company will cause, via
written instructions to the Escrow Agent, all monies received with respect to
the subscriptions for Units not accepted by the Company to be promptly returned
to such subscribers without interest, penalty, expense or
deduction.

       

      11.   Survival.

       

      (a) The
obligations of the parties under Section
9   above
and to otherwise pay any costs and expenses hereunder and to provide
indemnification and contribution as provided herein shall survive any
termination or expiration hereunder.  The provisions of Sections
6 and 14
hereto shall also survive any termination or expiration hereunder.

       

      (b) The
respective indemnities, agreements, representations, warranties and other
statements of the Company or the Co-Placement Agents set forth in or made
pursuant to this Agreement will remain in full force and effect, regardless of
any investigation made by or on behalf of, and regardless of any access to
information by, the Company or the Co-Placement Agents, or any of their officers
or directors or any controlling person thereof, and will survive the sale of the
Units.

       

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

       

      12.   Notices.  All notices and
other communications given or made pursuant hereto shall be in writing and shall
be delivered by overnight courier to the parties at the following addresses (or
at such other address for a party as shall be specified by like changes of
address which shall be effective upon receipt) or sent by electronic
transmission, with confirmation received,

       

      (a) if sent
to the Co-Placement Agents, will be mailed, delivered or telefaxed and confirmed
to:

       

      May Davis Partners, LLC

      800 Third Avenue

      9th
Floor

      New York, NY 10022

      Attention: Owen May

      Fax number: (212) 508-2124

      

      American Capital Partners
LLC

      205 Oser Avenue

      Hauppauge, New York 11788

      Attn : Chris Stala

      Fax number: (631) 234-1311

      

      with a copy to (such copy shall not
constitute notice):

      

      Gusrae, Kaplan, Bruno & Nusbaum
PLLC

      120 Wall Street, 11th
Floor

      New York, New York 10005

      Attention: Lawrence G.
Nusbaum

      Fax number: (212) 809-5449

      

      (b) and if
sent to the Company, to:

       

      China Baicaotang Medicine
Limited

      No. 102,
Changsha Road

      Liuzhou
City, Guangxi Province, PRC

      Attention: Tang Hui Tian,
President

      Fax number:

      

      with a copy to (such copy shall not
constitute notice):

      

      Anslow
& Jaclin, LLP

      195 Route
9 South, Suite 024

      Manalapan,
New Jersey 07726

      Attention:                      Richard
I. Anslow, Esq.

      Eric M. Stein, Esq.

      Fax
Number: (732) 577-1188

       

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      
 

      13.   Counterparts.  This
Agreement and any amendments, waivers, consents, or supplements may be executed
in one or more counterparts, each of which when so executed and delivered shall
be deemed an original, but all of which counterparts together shall constitute
but one and the same instrument.  Delivery of an executed counterpart
of a signature page to this Agreement, any amendments, waivers, consents or
supplements, by facsimile shall be as effective as delivery of a manually
executed counterpart thereof.

       

      14.   Applicable
Law; Costs.  This Agreement shall be governed by and construed
solely and exclusively in accordance with the internal laws of the State of New
York without regard to the conflicts of laws principles thereof. The parties
hereto hereby expressly and irrevocably agree that any suit or proceeding
arising directly and/or indirectly pursuant to or under this Agreement shall be
brought solely in a federal or state court located in the City, County and State
of New York. By its execution hereof, the parties hereby covenant and
irrevocably submit to the inpersonam jurisdiction
of the federal and state courts located in the City, County and State of New
York and agree that any process in any such action may be served upon any of
them personally, or by certified mail or registered mail upon them or their
agent, return receipt requested, with the same full force and effect as if
personally served upon them in New York City. The parties hereto expressly and
irrevocably waive any claim that any such jurisdiction is not a convenient forum
for any such suit or proceeding and any defense or lack of in personam jurisdiction
with respect thereto. In the event of any such action or proceeding, the party
prevailing therein shall be entitled to payment from the other party hereto of
all of its reasonable counsel fees and disbursements.

       

      15.   Miscellaneous.  No
provision of this Agreement may be changed or terminated except by a writing
signed by the party or parties to be charged therewith. Unless expressly so
provided, no party to this Agreement will be liable for the performance of any
other party’s obligations hereunder. Any party hereto may waive compliance by
the other with any of the terms, provisions and conditions set forth herein;
provided, however that any such waiver shall be in writing specifically setting
forth those provisions waived thereby. No such waiver shall be deemed to
constitute or imply waiver of any other term, provision or condition of this
Agreement. This Agreement contains the entire agreement between the parties
hereto and is intended to supersede any and all prior agreements between the
parties relating to the same subject matter. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original and all of
which together shall constitute a single agreement.

       

       

      [REMAINDER
OF PAGE INTENTIONALLY BLANK]

       

       

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

       

       

      [SIGNATURE
PAGE TO PLACEMENT AGENT AGREEMENT]

       

      If the
foregoing is in accordance with your understanding of our agreement, kindly sign
and return this Agreement, whereupon it will become a binding agreement between
the Company and the Co-Placement Agents in accordance with its
terms.

      

      Very
truly yours,

       

      
        	
                INGENIOUS
      PARAGON GLOBAL LIMITED

                 

                 

                By:
      ___________________________                                                                

                Name:

                Title:

                 

              	
                HEFENG
      PHARMACEUTICAL COMPANY LTD.

                 

                 

                By:
      ___________________________                                                                

                Name:

                Title:

                 

              
	
                FOREVER
      WELL ASIA PACIFIC LIMITED

                 

                 

                 

                By:
      ___________________________                                                               

                Name:

                Title:

                 

              	
                GUANGXI
      LIUZHOU BAICAOTANG MEDICINE RETAIL LIMITED

                 

                 

                By:
      ___________________________                                                               

                Name:

                Title:

              
	
                CHINA
      BAICAOTANG MEDICINE LIMITED

                 

                 

                By:
      ___________________________

                Name:
      Tang Hui Tian

                Title:
      Chief Executive Officer

              	
                PURDEN
      LAKE RESOURCES CORP.

                 

                 

                 

                By:
      ___________________________                                                               

                Name:

                Title:

              

      

      

      Accepted
and agreed to this ____ day of __________, 2009

      

      
        	
                MAY
      DAVIS PARTNERS, LLC

                 

                 

                By:
      ___________________________

                Name:           Owen
      May

                Title:           CEO

                 

                 

              	
                AMERICAN
      CAPITAL PARTNERS LLC

                 

                 

                By:
      ___________________________                                                                

                Name:

                Title:

                 

              

      

      
25

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