Document:

f8k122309ex10iii_cbt.htm

    Exhibit 10.3

     

    
      ESCROW
DEPOSIT AGREEMENT

       

      AGREEMENT dated this 21st day
of October 2009, by and among PURDEN LAKE RESOURCE CORP., a
Delaware corporation (the “Company”),
having an address at 7 Ashland Road, Caldwell, New Jersey 07006, MAY DAVIS PARTNERS, LLC, a
Delaware limited liability company, registered broker-dealer and a member of the
Financial Industry Regulatory Authority, Inc. (“May
Davis”), having an address at 800 Third Avenue, 9th
Floor, New York, New York 10022, AMERICAN CAPITAL PARTNERS,
LLC, a New York limited liability company, registered broker-dealer and a
member of the Financial Industry Regulatory Authority, Inc. (“American
Capital” and, together with May Davis, collectively, the “Placement
Agents”), having an address at 205 Oser Avenue, Hauppauge, New York
11788, and SIGNATURE
BANK (the “Escrow
Agent”), a New York State chartered bank, having an office at 261 Madison
Avenue, New York, New York 10016.  All terms not herein defined shall
have the meaning ascribed to them in the Company’s Confidential Private Offering
Memorandum, as amended and supplemented from time to time, including all
attachments, schedules and exhibits thereto (collectively, the “Memorandum”).

       

      W I T N E S S E T H:

       

      WHEREAS, pursuant to the terms
of the Memorandum, the Company is offering (the “Offering”)
for sale on a “reasonable efforts all-or-none” basis a minimum (the “Minimum
Amount”) of 582 units (each a “Unit”
and, collectively, the “Units”)
for an aggregate purchase price of $5,820,000 and on a “reasonable efforts”
basis a maximum (the “Maximum
Amount”) of 1,147 Units for an aggregate purchase price of $11,470,000,
each Unit consisting of (i) 3,937 shares of the Company’s common stock (the
“Common
Stock”), and (ii) a five-year warrant (the “Warrant”)
to purchase 514 additional shares of Common Stock (the “Warrant
Shares”) at an exercise price of $3.81 per share.  The Units
are being sold at a purchase price of $10,000 per Unit, with a minimum
investment of one (1) Unit ($10,000) (which minimum investment may be waived by
the Company and the Placement Agent in their discretion);

       

      WHEREAS, unless the Minimum
Amount is sold by November 20, 2009 (the “Initial
Termination Date”), which period may be extended until December 21, 2009
(the “Final

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

         

        Termination
Date”) by the Company and the Placement Agents in their mutual
discretion, the
Offering will terminate and all funds will be returned to the subscribers in the
Offering (the “Subscribers”)
without interest, penalty or offset;

      

       

      WHEREAS, the Company and the
Placement Agents desire to establish an escrow account with the Escrow Agent
into which the Company shall instruct the Subscribers to deposit checks and
other instruments for the payment of money made payable to the order of
“Signature Bank, as Escrow Agent for Purden Lake Resource Corp.,” and the Escrow
Agent is willing to accept said checks and other instruments for the payment of
money in accordance with the terms hereinafter set forth;

       

      WHEREAS, the Company and the
Placement Agents represent and warrant to the Escrow Agent that they have not
stated to any individual or entity that the Escrow Agent’s duties will include
anything other than those duties stated in this Agreement; and

       

      WHEREAS, the Company and the Placement Agents
warrant to the Escrow Agent that a copy of the Memorandum and all other
documents which have been delivered to Subscribers which include the Escrow
Agent’s name and duties, have been attached hereto as Schedule
I.

       

      NOW, THEREFORE, IT IS AGREED
as follows:

       

      1.           Delivery of Escrow
Funds.

       

      (a)           The
Placement Agents and the Company shall instruct Subscribers to deliver to the
Placement Agents or Escrow Agent checks made payable to the order of “Signature
Bank, as Escrow Agent for Purden Lake Resource Corp.,” or wire transfer to
Signature Bank, 261 Madison Avenue, New York, New York 10016, ABA No. 026013576 for credit to
Signature Bank, as Escrow Agent for Purden Lake Resource Corp., Account No.
1501326425, in each
case, with the name, address and social security number or taxpayer
identification number of the individual or entity making payment.  In
the event any Subscriber’s address and/or social security number or taxpayer
identification number are not provided to the Escrow Agent by such Subscriber,
the Placement Agents and/or the Company agree to promptly provide the Escrow
Agent with such information.  The checks or wire transfers shall be
deposited into a non interest-bearing account at Signature Bank entitled
“Signature Bank, as Escrow Agent for Purden Lake Resource Corp.” (the “Escrow
Account”).

       

      
        
           

        

        
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      (b)           The
collected funds deposited into the Escrow Account are referred to as the “Escrow
Funds.”

       

      (c)           The
Escrow Agent shall have no duty or responsibility to enforce the collection or
demand payment of any funds deposited into the Escrow Account.  If,
for any reason, any check deposited into the Escrow Account shall be returned
unpaid to the Escrow Agent, the sole duty of the Escrow Agent shall be to return
the check to the Subscriber and advise the Company and the Placement Agents
promptly thereof.

       

      (d)           The
Escrow Agent shall hold all Escrow Funds in the Escrow Account free from any
lien, claim or offset of the Escrow Agent, except as set forth
herein.

       

      2.           Release of Escrow
Funds.  The Escrow Funds shall be paid by the Escrow Agent in
accordance with the following:

       

      (a)           In
the event that the Company and the Placement Agents advise the Escrow Agent in
writing that the Offering has been terminated (the “Termination
Notice”), the Escrow Agent shall promptly return the Escrow Funds paid by
each Subscriber, and not previously closed upon, to said Subscriber without
interest or deduction, penalty or offset.

       

      (b)           If
prior to 3:00 P.M. (New York City time) on or prior to the Initial Termination
Date, the Escrow Agent receives written notification, in the form of Exhibit
A attached hereto and made a part hereof (the “Extension
Notice”), signed by the Company and the Placement Agents stating that the
Initial Termination Date has been extended to a date on or before the Final
Termination Date, the date shall be so extended.

       

      (c)           Provided
that the Escrow Agent has not received a Termination Notice pursuant to Section 2(a) hereof
and there is at least the Minimum Amount deposited into the Escrow Account on or
prior to (i) the Initial Termination Date or (ii) the Final Termination Date (in
the event that the Escrow Agent has received an Extension Notice), the Escrow
Agent shall, upon 

       

      
        
           

        

        
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        receipt
of written instructions, in form and substance satisfactory to the Escrow Agent,
received from the Company and the Placement Agents, pay the Escrow Funds in
accordance with such written instructions, such payment or payments to be made
by wire transfer on the same Banking Day (as defined in Section 2(f) hereof)
of receipt of such written instructions (the “First
Closing”); provided, however, if such
instructions are received after 3:00 PM (New York City time) on any day, such
payments shall be made by the Escrow Agent so that they are received before 3:00
PM (New York City time) on the next day which is a Banking Day.  The
same procedures shall be coordinated with respect to any subsequent closings
occurring prior to the Initial Termination Date or the Final Termination Date,
as applicable.  Notwithstanding anything contained herein, a final
closing may be held no later than ten (10) business days after the Initial
Termination Date or the Final Termination Date, as
applicable.

      

       

       (d)           If
by 3:00 P.M. (local New York City time) on the Initial Termination Date or, in
the event that the Escrow Agent has received the Extension Notice, on the Final
Termination Date, the Escrow Agent (i) has not received written instructions
from the Company and the Placement Agents pursuant to Section 2(c) hereof
regarding the disbursement of the Escrow Funds, or (ii) there is a balance in
the Escrow Account of less than the Minimum Amount and the First Closing has not
yet occurred, then the Escrow Agent shall promptly return the Escrow Funds to
the Subscribers without interest or deductions, penalty or expense and shall
promptly notify the Company and the Placement Agents thereof.  The
Escrow Funds returned to each Subscriber shall be free and clear of any and all
claims of the Escrow Agent.

       

      (e)           The
Escrow Agent shall not be required to pay any uncollected funds or any funds
which are not available for withdrawal.

       

      (f)           If
any other date that is a deadline under this Agreement for giving the Escrow
Agent notice or instructions or for the Escrow Agent to take action is not a
Banking Day, then such date shall be changed to the Banking Day that is
immediately after such date.  A “Banking
Day” is any day other than a Saturday, Sunday or Bank
Holiday.

       

      (g)           The
Company may reject or cancel any subscription for Units in whole or in part. If
payment for any such rejected or canceled subscription has been delivered to the
Escrow 

       

      
        
           

        

        
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        Agent,
the Company and the Placement Agents will inform the Escrow Agent of the
rejection or cancellation, and the Escrow Agent upon receiving such notice shall
promptly return such funds to said Subscriber, but in no event prior to those
funds becoming collected and available for withdrawal.

      

       

      3.           Acceptance by Escrow
Agent.  The Escrow Agent hereby accepts and agrees to perform
its obligations hereunder, provided that:

       

      (a)           The
Escrow Agent may act in reliance upon any signature reasonably believed by it to
be genuine, and may assume that any person who has been designated by the
Placement Agents or the Company to give any written instructions, notice or
receipt, or make any statements in connection with the provisions hereof has
been duly authorized to do so.  The Escrow Agent shall have no duty to
make inquiry as to the genuineness, accuracy or validity of any statements or
instructions or any signatures on statements or instructions.  The
names and true signatures of each individual authorized to act singly on behalf
of the Company and the Placement Agents are stated in Schedule
II, which is attached hereto and made a part hereof.  The
Company and the Placement Agents may each remove or add one or more of its
authorized signers listed on Schedule
II by notifying the Escrow Agent of such change in accordance with this
Agreement, which notice shall include the true signature for any new authorized
signatories.

       

      (b)           The
Escrow Agent may act relative hereto in reliance upon advice of counsel in
reference to any matter connected herewith.  The Escrow Agent shall
not be liable for any mistake of fact or error of judgment or law, or for any
acts or omissions of any kind, unless caused by its willful misconduct or gross
negligence.

       

      (c)           The
Placement Agents and the Company agree to indemnify and hold the Escrow Agent
harmless from and against any and all claims, losses, costs, liabilities,
damages, suits, demands, judgments or expenses (including but not limited to
reasonable attorney’s fees) claimed against or incurred by the Escrow Agent, in
good faith, arising out of or related, directly or indirectly, to this Escrow
Agreement unless caused by a breach of this Agreement by the Escrow Agent or by
the Escrow Agent’s gross negligence or willful misconduct.

       

      
        
           

        

        
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      (d)           In
the event that the Escrow Agent shall be uncertain as to its duties or rights
hereunder, the Escrow Agent shall be entitled to (i) refrain from taking any
action other than to keep safely the Escrow Funds until it shall be directed
otherwise by a court of competent jurisdiction, or (ii) deliver the Escrow Funds
to a court of competent jurisdiction and in either case it shall notify the
Company and the Placement Agents thereof.

       

      (e)           The
Escrow Agent shall have no duty, responsibility or obligation to interpret or
enforce the terms of any agreement other than the Escrow Agent’s obligations
hereunder, and the Escrow Agent shall not be required to make a request that any
monies be delivered to the Escrow Account, it being agreed that the sole duties
and responsibilities of the Escrow Agent, to the extent not prohibited by
applicable law, shall be (i) to accept checks or other instruments for the
payment of money and wire transfers delivered to the Escrow Agent for the Escrow
Account and deposit said checks and wire transfers into the non-interest bearing
Escrow Account, and (ii) to disburse or refrain from disbursing the Escrow Funds
as stated above, provided that the checks received by the Escrow Agent have been
collected and are available for withdrawal.

       

      4.           Resignation and Termination
of the Escrow Agent.  The Escrow Agent may resign at any time
by giving thirty (30) days’ prior written notice of such resignation to the
Placement Agents and the Company.  Upon providing such notice, the
Escrow Agent shall have no further obligation hereunder except to comply with
Section 2(c)
and to hold the Escrow Funds which it thereafter receives until the end of such
30-day period.  In such event, the Escrow Agent shall not take any
action, other than complying with Section 2(c) and
receiving and depositing Subscribers’ checks and wire transfers in accordance
with this Agreement, until the Company together with the Placement Agents have
designated a banking corporation, trust company, attorney or other person as
successor.  Upon receipt of such written designation signed by the
Placement Agents and the Company, the Escrow Agent shall promptly deliver the
Escrow Funds to such successor and shall thereafter have no further obligations
hereunder.  If such instructions are not received within thirty (30)
days following the effective date of such resignation, then the Escrow Agent may
deposit the Escrow Funds and any other amounts held by it pursuant to this
Agreement with a clerk of a court of competent jurisdiction pending the
appointment of a successor.  In either case provided for in this
paragraph, the Escrow Agent shall be relieved of all further obligations and
released from all liability thereafter arising with respect to the Escrow
Funds.

       

      
        
           

        

        
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      5.           Termination.  The
Company and the Placement Agents may terminate the appointment of the Escrow
Agent hereunder upon written notice specifying the date upon which such
termination shall take effect, which date shall be at least thirty (30) days
from the date of such notice.  In the event of such termination, the
Company and the Placement Agents shall, within thirty (30) days of such notice,
appoint a successor escrow agent and the Escrow Agent shall, upon receipt of
written instructions signed by the Company and the Placement Agents, turn over
to such successor escrow agent all of the Escrow Funds; provided, however, that if the
Company and the Placement Agents fail to appoint a successor escrow agent within
such 30-day period, such termination notice shall be null and void and the
Escrow Agent shall continue to be bound by all of the provisions
hereof.  Upon receipt of the Escrow Funds, the successor escrow agent
shall become the Escrow Agent hereunder and shall be bound by all of the
provisions hereof and Signature Bank shall be relieved of all further
obligations and released from all liability thereafter arising with respect to
the Escrow Funds and under this Agreement.  Nothing herein shall,
however, release the Escrow Agent from liability for its actions or omissions as
provided herein arising prior to the appointment of such successor.

       

      6.           Investment.  All
funds received by the Escrow Agent will be held only in non-interest bearing
bank accounts at Signature Bank.

       

      7.           Compensation.  The
Escrow Agent shall be entitled, for the duties to be performed by it hereunder,
to a fee of $3,500 which fee shall be paid by the Company promptly following the
signing of this Agreement.  In addition, the Company shall be
obligated to reimburse the Escrow Agent for all third party fees, costs and
expenses incurred in good faith or that become due in connection with the Escrow
Account and this Agreement, including reasonable and actual attorney’s
fees.  Neither the modification, cancellation, termination or
rescission of this Agreement, nor the resignation or termination of the Escrow
Agent shall affect the right of the Escrow Agent to retain the amount of any fee
which has been paid, or to be reimbursed or paid for any costs or expenses that
have been incurred or become due prior to the effective date of any

       

      
        
           

        

        
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      such
modification, cancellation, termination, resignation or
rescission.  To the extent the Escrow Agent has not been paid any fee
or has incurred any such costs or expenses prior to any closing, the Escrow
Agent shall advise the Company and the Company shall direct all such amounts to
be paid directly at any such closing.

       

      8.           Notices.  All
notices, requests, demands and other communications required or permitted to be
given hereunder shall be in writing and shall be deemed to have been duly given
if sent by hand-delivery, by facsimile (followed by first-class mail), one (1)
business day after sent by nationally recognized overnight courier service or
three (3) business days after sent by registered or certified mail, return
receipt requested, in each case costs prepaid, to the addresses set forth
below.

      If to the Placement
Agents:

       

      May Davis
Partners, LLC

      800 Third
Avenue, 9th Floor

      New York,
New York 10022

      Attention:  Owen
May

      Fax:  (212)
508-2124

       

      American
Capital Partners, LLC

      205 Oser
Avenue

      Hauppauge,
New York 11788

      Attention:
Anthony M. Gardini

      Fax:
(631) 670-1352

      

      With a
copy to:

      Gusrae,
Kaplan, Bruno & Nusbaum PLLC

      120 Wall
Street, 11th
Floor

      New York,
New York 10005

      Attention:  Lawrence
G. Nusbaum, Esq.

      Fax:  (212)
809-5449

       

      If to the
Company:

       

      Purden
Lake Resource Corp.

      7 Ashland
Road

      Caldwell,
New Jersey 07006 

      
        Attention: Lisa
Lopomo

      

      
      

      

       

      
        
           

        

        
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      If to the
Escrow Agent:

       

      Signature Bank

                            261
Madison Avenue

                            New
York, New York 10016

                            Attention: Mr. Cliff
Broder, Group Director and
Senior Vice President

                            Fax:
(646) 822-1359

      

      9.           General.

       

      (a)           This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of New York applicable to agreements made and to be entirely
performed within such State without regard to choice of law principles and any
action brought hereunder shall be brought in the courts of the State of New
York, located in the County of New York.  Each party hereto irrevocably
waives any objection on the grounds of venue, forum non­-conveniens or any
similar grounds and irrevocably consents to service of process by mail or in any
manner permitted by applicable law and consents to the jurisdiction of said
courts.  Each of the parties hereto hereby waives all right to trial by
jury in any action, proceeding or counterclaim arising out of the transactions
contemplated by this Agreement.

       

      (b)           This
Agreement sets forth the entire agreement and understanding of the parties in
respect to the matters contained herein and supersedes all prior agreements,
arrangements and understandings relating thereto.

       

      (c)           All
of the terms and conditions of this Agreement shall be binding upon, and inure
to the benefit of and be enforceable by, the parties hereto, as well as their
respective successors and assigns.

       

      (d)           This
Agreement may be amended, modified, superseded or canceled, and any of the terms
or conditions hereof may be waived, only by a written instrument executed by
each party hereto or, in the case of a waiver, by the party waiving
compliance.  The failure of any party at any time or times to require
performance of any provision hereof shall in no manner affect its right at a
later time to enforce the same.  No waiver of any party of any
condition, or of the breach of any term contained in this Agreement, whether by
conduct or otherwise, in any one or more instances shall be deemed to be or
construed as a further or continuing waiver of any 

       

      
        
           

        

        
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        such
condition or breach or a waiver of any other condition or of the breach of any
other term of this Agreement.  No party may assign any rights, duties
or obligations hereunder unless all other parties have given their prior written
consent.

      

       

      (e)           If
any provision included in this Agreement proves to be invalid or unenforceable,
it shall not affect the validity of the remaining provisions.

       

      (f)           This
Agreement and any amendment or modification of this Agreement may be executed in
several counterparts or by separate instruments and all of such counterparts and
instruments shall constitute one agreement, binding on all of the parties
hereto.

       

      10.           Form of Signature.
The parties hereto agree to accept a facsimile transmission copy of their
respective actual signatures as evidence of their actual signatures to this
Agreement and any amendment or modification of this Agreement; provided, however, that each
party who produces a facsimile signature agrees, by the express terms hereof, to
place, promptly after transmission of his or her signature by fax, a true and
correct original copy of his or her signature in overnight mail to the address
of the other parties.

       

      [Signature
page follows]

       

       

       

       

       

       

      
        
           

        

        
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      IN WITNESS WHEREOF, the
parties have duly executed this Escrow Agreement as of the date first set forth
above.

       

      MAY DAVIS
PARTNERS, LLC

       

      
        By:
__________________________

        Name:  Owen
May

        Title:

      

       

      AMERICAN
CAPITAL PARTNERS, LLC

       

      By:
__________________________

      Name:  Anthony
M. Gardini

      Title:

      

      

      PURDEN
LAKE RESOURCE CORP.

       

      By:
__________________________

      Name:  Lisa
Lopomo

      Title:

      

      

      SIGNATURE
BANK

       

      By:
_____________________________

      Name:

      Title:

       

      By:
_____________________________

      Name:

      Title:

       

      
        
           

        

        
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      EXHIBIT
A

       

      Date:
__________________

       

      Signature
Bank

      261
Madison Avenue

      New York,
New York 10016

      Attention: Mr. Cliff
Broder, Group Director and
Senior Vice President

      

      Re:  Purden Lake Resource Corp.
Escrow Account No. 1501326425

      

      Dear Mr.
Broder:

       

      In
accordance with the terms of Section 2(b) of an
Escrow Deposit Agreement dated October 21, 2009, by and among PURDEN LAKE RESOURCE CORP.
(the “Company”),
MAY DAVIS PARTNERS, LLC
(“May
Davis”), AMERICAN
CAPITAL PARTNERS, LLC (“American
Capital” and, together with May Davis, collectively, the “Placement
Agents”) and SIGNATURE
BANK (the “Escrow
Agent”), the Company and the Placement Agents hereby notify the Escrow
Agent that the Offering Period has been extended to December 21, 2009, the
Final Termination Date.

       

      Very
truly yours,

       

      
        
          	
                  MAY
      DAVIS PARTNERS, LLC

                	
                  PURDEN
      LAKE RESOURCE CORP.

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  By:         _____________________________

                	
                  By:  __________________________

                
	
                               Name:
      Owen May

                	
                      Name:
      Lisa Lopomo

                
	
                         Title:

                	
                      Title:

                
	 
      	 
      
	
                  AMERICAN
      CAPITAL PARTNERS, LLC 

                	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  By:         _____________________________

                	 
      
	
                     Name: Anthony M.
      Gardini

                	 
      
	
                     Title:

                	 
      

        

      

       

       

       

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      Schedule
I

       

      OFFERING
DOCUMENTS

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
           

        

        
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      Schedule
II

      

      The Escrow Agent is authorized to
accept instructions signed or believed by the Escrow Agent to be signed by any
one of the following on behalf of Purden Lake Resource Corp., May Davis
Partners, LLC and American Capital Partners, LLC

      

      

      
        	
                PURDEN LAKE RESOURCE
      CORP.

                 

              
	
                Name

              	 
      	
                True
      Signature

              
	
                 

                Lisa
      Lopomo

              	 
      	 
      
	 
      	 
      	 
      

      

      

      

      
        	
                MAY DAVIS PARTNERS,
      LLC

              
	
                Name

              	 
      	
                True
      Signature

              
	
                 

                Owen
      May

              	 
      	 
      
	 
      	 
      	 
      

      

      

      
        	
                AMERICAN CAPITAL PARTNERS,
      LLC

                 

              
	
                Name

              	 
      	
                True
      Signature

              
	
                 

                Anthony
      M. Gardinif8k122309ex10iv_cbt.htm

    Exhibit
10.4

     

     

    
      

      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
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.

      

       

      PURDEN
LAKE RESOURCE CORP.

       

      WARRANT
TO PURCHASE

       

      [____________]
SHARES

       

      OF
COMMON STOCK

       

      (SUBJECT
TO ADJUSTMENT)

       

      

       

      Warrant
No.: [___] [___________], 2009

       

      This
certifies that for value, [__________] or its registered
and permitted assigns (the “Holder”),
is entitled, subject to the terms set forth below, at any time from and after
the date set forth above (the “Original Issuance
Date”) and before 5:00 p.m., Eastern Time, on the date that is the five
(5) year anniversary of the Original Issuance Date (the “Expiration
Date”), to purchase from PURDEN LAKE RESOURCE CORP., a
Delaware corporation (the “Company”),
[_____________ (__________)]
shares (subject to adjustment as described herein), of common stock of
the Company, par value $0.001 per share (the “Common
Stock”), upon surrender hereof, at the principal office of the Company
referred to below, with a duly executed exercise notice (the “Exercise
Notice”) in the form attached hereto as Exhibit A
and simultaneous payment therefor in lawful, immediately available money of the
United States, at an initial exercise price per share of $3.81 (the “Exercise
Price”).   The Exercise Price is subject to adjustment as
provided below, and the term “Common
Stock” shall include, unless the context otherwise requires, the stock
and other securities and property at the time receivable upon the exercise of
this Warrant. The term “Warrants,”
as used herein, shall mean this Warrant and any other Warrants delivered in
substitution or exchange therefor as provided herein.

       

      This
Warrant is one of a series of similar Warrants issued in connection with the
Company’s private placement (the “Offering”)
of its units (the “Units”),
each Unit consisting of (i) 3,937 shares of Common Stock and (ii) a Warrant
exercisable into 514 shares of Common Stock, pursuant to the Company’s
Confidential Private Offering Memorandum dated October 23, 2009 (the “Memorandum”).

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

       

      1.    Definitions.  In
addition to the terms defined elsewhere in this Warrant, capitalized terms that
are not otherwise defined herein have the meanings given to such terms in the
Memorandum.

       

      2.    Exercise.

       

      A.    Method of
Exercise.  This Warrant may be exercised at any time or from
time to time from and after the Original Issuance Date and before
5:00 p.m., Eastern Time, on the Expiration Date, on any Business Day (as
defined below), for the full number of shares of Common Stock called for hereby,
by surrendering it at the Company’s principal office, at No. 102, Chengzhan
Road, Liuzhou City, Guangxi Province, PRC (the “Principal
Office”), Attention: Xiao Yan Zhang, with the Exercise Notice duly
executed, together with payment in an amount equal to (a) the number of
shares of Common Stock called for on the face of this Warrant, as adjusted in
accordance with the preceding paragraph of this Warrant multiplied (b) by
the Exercise Price then in effect. Payment of the Exercise Price must be made by
payment in immediately available funds. This Warrant may be exercised for less
than the full number of shares of Common Stock at the time called for hereby,
except that the number of shares of Common Stock receivable upon the exercise of
this Warrant as a whole, and the sum payable upon the exercise of this Warrant
as a whole, shall be proportionately reduced. Upon a partial exercise of this
Warrant in accordance with the terms hereof, this Warrant shall be surrendered
to the Company, and a new Warrant of the same tenor and for the purchase of the
number of such shares not purchased upon such exercise shall be issued by the
Company to Holder without any charge therefor. A Warrant shall be deemed to have
been exercised immediately prior to the close of business on the date of its
surrender for exercise (the “Exercise
Date”) as provided above, and the person entitled to receive the shares
of Common Stock issuable upon such exercise shall be treated for all purposes as
the holder of such shares of record as of the close of business on the Exercise
Date. Within ten (10) Business Days after the Exercise Date, the Company shall
issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of full shares of Common Stock
issuable upon such exercise.  For purposes of this Warrant, “Business
Day” means any day that is not a Saturday, a Sunday, or a day on which
banks are required or permitted to be closed in the State of New
York.

       

      B.    Cashless Exercise.
Notwithstanding any provision herein to the contrary and commencing six (6)
months following the Original Issuance Date, if a registration statement under
the Securities Act providing for the resale of the Warrant Stock is not then in
effect by the date such registration statement is required to be effective
pursuant to the terms of the Offering or not effective at any time thereafter,
in lieu of exercising this Warrant by payment of cash, the Holder may elect to
exercise this Warrant by a cashless exercise and shall receive the number of
shares of Common Stock equal to an amount (as determined below) by surrender of
this Warrant at the principal office of the Company together with the properly
endorsed Notice of Exercise in which event the Company shall issue to the Holder
a number of shares of Common Stock computed using the following
formula:

       

      
        	 
      	 
      
	 
      	
                X =
      Y - (A)(Y)

              
	
                  

              	
                B

              
	 
      	 
      	 
      
	
                  Where

              	
                X
      =

              	
                the
      number of shares of Common Stock to be issued to the
    Holder.

              
	 
      	 
      	 
      

         

         

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

         

        	 
      	
                Y
      =

              	
                the
      number of shares of Common Stock issuable upon exercise of this Warrant in
      accordance with the terms of this Warrant by means of a cash exercise
      rather than a cashless exercise.

              
	 
      	 
      	 
      
	 
      	
                A
      =

              	
                the
      Exercise Price.

              
	 
      	 
      	 
      
	 
      	
                B
      =

              	
                the
      Per Share Market Value of one share of Common Stock on the Business Day
      immediately preceding the date of such
election.

              

      

      

      For the
purpose of this Warrant, “Per Share Market
Value” means on any particular date (a) the last closing price per share
of the Common Stock on such market that the Common Stock is then listed, or if
there is no closing price on such date, then the closing bid price on such date,
or if there is no closing bid price on such date, then the closing price on such
exchange or quotation system on the date nearest preceding such date, or (b) if
the Common Stock is not listed then on a market or any registered national stock
exchange, the last closing price for a share of Common Stock in the
over-the-counter market, as reported by Bloomberg at the close of business on
such date, or if there is no closing price on such date, then the closing bid
price on such date, or (c) if the Common Stock is not then reported by the
trading market or any registered national stock exchange or in the National
Quotation Bureau Incorporated (or similar organization or agency succeeding to
its functions of reporting prices), then the average of the “Pink Sheet” quotes
for the five (5) Business Days preceding such date of determination, or (d) if
the Common Stock is not then publicly traded the fair market value of a share of
Common Stock as determined by an independent appraiser selected in good faith by
the Co-Placement Agents; provided, however, that the
Company, after receipt of the determination by such independent appraiser, shall
have the right to select an additional independent appraiser, in which case, the
fair market value shall be equal to the average of the determinations by each
such independent appraiser; and provided, further, that all
determinations of the Per Share Market Value shall be appropriately adjusted for
any stock dividends, stock splits or other similar transactions during such
period. The determination of fair market value by an independent appraiser shall
be based upon the fair market value of the Company determined on a going concern
basis as between a willing buyer and a willing seller and taking into account
all relevant factors determinative of value, and shall be final and binding on
all parties. In determining the fair market value of any shares of Common Stock,
no consideration shall be given to any restrictions on transfer of the Common
Stock imposed by agreement or by federal or state securities laws, or to the
existence or absence of, or any limitations on, voting rights.

      

      C.    Limitation on
Exercise.  Notwithstanding any provisions herein to the
contrary, the number of shares of Common Stock that may be acquired by the
Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall
be limited to the extent necessary to insure that, following such exercise (or
other issuance), the total number of shares of Common Stock then beneficially
owned by such Holder and its affiliates and any other persons whose beneficial
ownership of Common Stock would be aggregated with the Holder’s for purposes of
Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), does 

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

         

        not
exceed 4.9% (the “Maximum
Percentage”) of the total number of issued and outstanding shares of
Common Stock. For such purposes, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. This restriction may not be waived.

      

       

      D.    Exercise
Disputes.  In the case of any dispute with respect to the
number of shares of Common Stock to be issued upon exercise of this Warrant
and/or the Exercise Price in effect at the time of exercise, the Company shall
promptly submit the disputed determinations or arithmetic calculations to the
Holder via fax (or, if the Holder has not provided the Company with a fax
number, by overnight courier) within five (5) Business Days of receipt of the
Holder’s Exercise Notice.  If the Holder and the Company are unable to
agree as to the determination of the number of shares of Common Stock to be
issued upon exercise of this Warrant and/or the Exercise Price within five (5)
Business Days of such disputed determination or arithmetic calculation being
submitted to the Holder by the Company, then the Company shall in accordance
with this Section, on the next Business Day submit the disputed determination to
its independent auditor.  The Company shall cause its independent
auditor to perform the determinations or calculations and notify the Company and
the Holder of the results promptly, in writing and in sufficient detail to give
the Holder and the Company a clear understanding of its determinations and
calculations.  The determination by the Company’s independent auditor
shall be binding upon all parties absent manifest error.  The Company
shall then on the next Business Day instruct its transfer agent to issue
certificate(s) representing the appropriate number of shares of Common Stock in
accordance with the independent auditor’s determination and this
Section.  The prevailing party shall be entitled to reimbursement of
all fees and expenses of such determination and calculation, but in no event
shall the Company be liable to the Holder for any diminution of value or damages
therefrom during the period that such exercise is disputed.

      

      3.    Shares Fully Paid; Payment
of Taxes. All shares of Common Stock issued upon the exercise of this
Warrant, in accordance with the terms of this Warrant, shall be validly issued,
fully paid and non-assessable, and the Company shall pay all taxes and other
governmental charges (other than income taxes to the holder) that may be imposed
in respect of the issue or delivery thereof.

       

      4.    Transfer and
Exchange.

       

      A.    Transfer.  This
Warrant and all rights hereunder are transferable, in whole or in part, on the
books of the Company maintained for such purpose at the Principal Office by the
Holder in person or by duly authorized attorney, upon surrender of this Warrant
at the Principal Office together with: (i) a completed and executed form of
assignment, a form of which is attached hereto as Exhibit B,
(ii) payment of any necessary transfer tax or other governmental charge imposed
upon such transfer, and (iii) an opinion of counsel reasonably acceptable to the
Company stating that such transfer is exempt from the registration requirements
of the Securities Act of 1933, as amended (the “Securities
Act”). Upon any partial transfer of this Warrant, the Company will issue
and deliver to Holder a new Warrant or Warrants with respect to the portion of
this Warrant not so transferred. Each taker and holder of this Warrant, by
taking or holding the same, consents and agrees that this Warrant when endorsed
in blank shall be deemed negotiable and that when this Warrant shall have been
so endorsed, the holder hereof may be treated by the Company and all other
persons dealing with this Warrant as the absolute owner hereof for any purpose
and as the person entitled to exercise the rights represented hereby, or to the
transfer 

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

         

        hereof on
the books of the Company, any notice to the contrary notwithstanding; but until
such transfer on such books, the Company may treat the registered Holder hereof
as the owner for all purposes.

      

       

      B.    Exchange.  This
Warrant is exchangeable at the Principal Office for two (2) or more new
Warrants, each in the form of this Warrant, to purchase the same aggregate
number of shares of Common Stock, each new Warrant to represent the right to
purchase such number of shares as the Holder shall designate at the time of such
exchange, but which shall not exceed the total number of shares for which this
Warrant may be from time to time exercisable.

       

      5.    Certain
Adjustments.  The Exercise Price in effect at any time and the
number and kind of securities issuable upon exercise of this Warrant shall be
subject to adjustment from time to time upon the happening of certain events as
follows:

       

      A.    Adjustment for Stock Splits
and Combinations. If the Company at any time or from time to time on or
after the Original Issuance Date effects a stock split or subdivision of the
outstanding Common Stock, the Exercise Price then in effect immediately before
that stock split or subdivision shall be proportionately decreased and the
number of shares of Common Stock theretofore receivable upon the exercise of
this Warrant shall be proportionately increased. If the Company at any time or
from time to time effects a reverse stock split or combines the outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price then
in effect immediately before that reverse stock split or combination shall be
proportionately increased and the number of shares of Common Stock theretofore
receivable upon the exercise of this Warrant shall be proportionately decreased.
Each adjustment under this Section
5A shall become effective at the close of business on the date the stock
split, subdivision, reverse stock split or combination becomes
effective.

       

      B.    Adjustment for Certain
Dividends and Distributions. If the Company at any time or from time to
time on or after the Original Issuance Date makes or fixes a record date for the
determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in additional shares of Common Stock, then and in
each such event the Exercise Price then in effect shall be decreased as of the
time of such issuance or, in the event such record date is fixed, as of the
close of business on such record date, by multiplying the Exercise Price then in
effect by a fraction (1) the numerator of which is the total number of shares of
Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date and (2) the denominator of
which shall be the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or the close of business on such
record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution; provided, however, that if such
record date is fixed and such dividend is not fully paid or if such distribution
is not fully made on the date fixed therefor, the Exercise Price shall be
recomputed accordingly as of the close of business on such record date and
thereafter the Exercise Price shall be adjusted pursuant to this Section 5B
as of the time of actual payment of such dividends or
distributions.

       

      C.    Adjustments for Other
Dividends and Distributions. In the event the Company at any time or from
time to time on or after the Original Issuance Date makes, or fixes a record
date for the determination of holders of Common Stock entitled to receive a
dividend or other distribution payable in securities of the Company other than
shares of Common Stock, then 

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

        and in
each such event provision shall be made so that the Holder of this Warrant shall
receive upon conversion thereof, in addition to the number of shares of Common
Stock receivable thereupon, the amount of securities of the Company which the
Holder would have received had this Warrant been exercised on the date of such
event and had Holder thereafter, during the period from the date of such event
to and including the conversion date, retained such securities receivable by the
Holder as aforesaid during such period, subject to all other adjustments called
for during such period under this Section
5 with respect to the rights of the Holder of this
Warrant.

      

       

      D.    Adjustment for
Recapitalization, Reorganization, Reclassification, Consolidation, Merger or
Sale.  In case the Company after the Original Issue Date shall
do any of the following (each, a “Recap Event”): (a)
consolidate or merge with or into any other Person and the Company shall not be
the continuing or surviving corporation of such consolidation or merger, or (b)
permit any other Person to consolidate with or merge into the Company and the
Company shall be the continuing or surviving Person but, in connection with such
consolidation or merger, any Common Stock of the Company shall be changed into
or exchanged for securities of any other Person or cash or any other property,
or (c) transfer all or substantially all of its properties or assets to any
other Person, or (d) effect a capital reorganization or reclassification of its
Common Stock, then, and in the case of each such Recap Event, proper provision
shall be made to the Exercise Price and the number of shares of Common Stock
that may be purchased upon exercise of this Warrant so that, upon the basis and
the terms and in the manner provided in this Warrant, the Holder of this Warrant
shall be entitled upon the exercise hereof at any time after the consummation of
such Recap Event, to the extent this Warrant is not exercised prior to such
Recap Event, to receive at the Exercise Price in effect at the time immediately
prior to the consummation of such Recap Event, in lieu of the Common Stock
issuable upon such exercise of this Warrant prior to such Recap Event, the
securities, cash and property to which such Holder would have been entitled upon
the consummation of such Recap Event if such Holder had exercised the rights
represented by this Warrant immediately prior thereto (including the right of a
shareholder to elect the type of consideration it will receive upon a Recap
Event), subject to adjustments (subsequent to such corporate action) as nearly
equivalent as possible to the adjustments provided for elsewhere in this
Section; provided, however, the Holder
at its option may elect to receive an amount in unregistered shares of the
common stock of the surviving entity equal to the value of this Warrant
calculated in accordance with the Black-Scholes formula; provided, further, such shares
of Common Stock shall be valued at a twenty percent (20%) discount to the VWAP
of the Common Stock for the twenty (20) Trading Days immediately prior to the
Recap Event. Immediately upon the occurrence of a Recap Event, the Company shall
notify the Holder in writing of such Recap Event and provide the calculations in
determining the number of shares of Warrant Stock issuable upon exercise of the
new warrant and the adjusted Warrant Price. Upon the Holder’s request, the
continuing or surviving corporation as a result of such Recap Event shall issue
to the Holder a new warrant of like tenor evidencing the right to purchase the
adjusted number of shares of Warrant Stock and the adjusted Warrant Price
pursuant to the terms and provisions of this Section 4(a)(i).  In the
event that the surviving entity pursuant to any such Recap Event is not a public
company that is registered pursuant to the Exchange Act of 1934, as amended, or
its common stock is not listed or quoted on a national securities exchange,
national automated quotation system or the OTC Bulletin Board, then the Holder
at its option may elect to receive an amount in unregistered shares of the
common stock of the surviving entity equal to the value of this Warrant
calculated in accordance with the Black-Scholes formula.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      In the
event that the Holder has elected not to exercise this Warrant prior to the
consummation of a Recap Event and has also elected not to receive an amount in
unregistered shares equal to the value of this Warrant calculated in accordance
with the Black-Scholes formula, so long as the surviving entity pursuant to any
Recap Event is a company that has a class of equity securities registered
pursuant to the Exchange Act and its common stock is listed or quoted on a
national securities exchange, national automated quotation system or the OTC
Bulletin Board, the surviving entity and/or each Person (other than the Company)
which may be required to deliver any Securities, cash or property upon the
exercise of this Warrant as provided herein shall assume, by written instrument
delivered to, and reasonably satisfactory to, the Holder of this Warrant, (A)
the obligations of the Company under this Warrant (and if the Company shall
survive the consummation of such Recap Event, such assumption shall be in
addition to, and shall not release the Company from, any continuing obligations
of the Company under this Warrant) and (B) the obligation to deliver to such
Holder such Securities, cash or property as, in accordance with the foregoing
provisions of this subsection (a), such Holder shall be entitled to receive, and
the surviving entity and/or each such Person shall have similarly delivered to
such Holder an opinion of counsel for the surviving entity and/or each such
Person, which counsel shall be reasonably satisfactory to such Holder, or in the
alternative, a written acknowledgement executed by the President or Chief
Financial Officer of the Company, stating that this Warrant shall thereafter
continue in full force and effect and the terms hereof (including, without
limitation, all of the provisions of this subsection (a)) shall be applicable to
the Securities, cash or property which the surviving entity and/or each such
Person may be required to deliver upon any exercise of this Warrant or the
exercise of any rights pursuant hereto.

      

      E.    Reserved.

       

      F.    Adjustment for Sale of
Shares Below Exercise Price.

       

      (i)    In the
event the Company shall at any time issue Additional Stock (as defined below) at
a price per share less than $2.54 or without consideration (a “Trigger
Issuance”), then the Exercise Price then in effect upon each such Trigger
Issuance shall be changed to a price equal to 150% of the consideration per
share received by the Company in respect of the shares issued in such Trigger
Issuance (rounded to the nearest tenth of a cent).  Such adjustment
shall be made successively whenever such an issuance is made.

      

       

      (ii)    “Additional
Stock” shall mean Common Stock or options, warrants or other rights to
acquire or securities convertible into or exchangeable for shares of Common
Stock, including shares held in the Company’s treasury, and shares of Common
Stock issued upon the exercise of any options, rights or warrants to subscribe
for shares of Common Stock and shares of Common Stock issued upon the direct or
indirect conversion or exchange of securities for shares of Common Stock, other
than securities:

       

      (1) issued or
issuable upon the exercise of any Warrants and/or Agent Warrants issued in
connection with the Offering;

       

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      (2) issued or
issuable upon the conversion or exercise or exchange of options, warrants,
rights and other securities or debt that are outstanding on the Original
Issuance Date;

       

      (3) issued or
issuable pursuant to stock purchase or stock option plans which have been
approved by the Company’s board of directors and shareholders on or prior to the
Original Issuance Date;

       

      (4) issued or
issuable as a result of any anti-dilution in any outstanding securities of the
Company that are outstanding on the Original Issuance Date; or

       

      (5) issued or issuable to employees,
officers or directors pursuant to stock option plans approved by the independent
members of the Company’s Board of Directors and the stockholders of the
Company.

       

      G.    Reserved

       

      H.    Certificate as to
Adjustments. Upon the occurrence of each adjustment or readjustment of
the Exercise Price pursuant to this Section
5, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to each holder of a
Warrant a certificate setting forth such adjustment or readjustment and showing
in detail the facts upon which such adjustment or readjustment is based. The
Company shall, upon the written request at any time of any holder of a Warrant,
furnish or cause to be furnished to such holder a like certificate setting forth
(i) such adjustments and readjustments, (ii) Exercise Price at the
time in effect, and (iii) the number of shares of Common Stock and the
amount, if any, of other property which at the time would be received upon the
exercise of the Warrant.

       

      6.    Notices of Record
Date. In case:

       

      A.    the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time receivable upon the exercise of the Warrants) for the
purpose of entitling them to receive any dividend or other distribution, or any
right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, or

       

      B.    of any
capital reorganization of the Company, any reclassification of the capital stock
of the Company, any consolidation or merger of the Company with or into another
corporation, or any conveyance of all or substantially all of the assets of the
Company to another corporation, or

       

      C.    of any
voluntary dissolution, liquidation or winding-up of the Company, then, and in
each such case, the Company will mail or cause to be mailed to each holder of a
Warrant at the time outstanding a notice specifying, as the case may be,
(a) the date on which a record is to be taken for the purpose of such
dividend, distribution or right, and stating the amount and character of such
dividend, distribution or right, or (b) the date on which such
reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up is expected to take place, and the time,
if any is to be fixed, as of which the holders of record of Common Stock (or
such stock or securities at the time receivable upon the exercise 

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

         

        of the
Warrants) shall be entitled to exchange their shares of Common Stock (or such
other stock or securities) for securities or other property deliverable upon
such reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up, such notice shall be mailed at least ten
(10) days prior to the date therein specified.

      

       

      7.    Loss or Mutilation.
Upon receipt by the Company of evidence satisfactory to it (in the exercise of
reasonable discretion) of the ownership of and the loss, theft, destruction or
mutilation of any Warrant and (in the case of loss, theft or destruction) of
indemnity satisfactory to it (in the exercise of reasonable discretion), and (in
the case of mutilation) upon surrender and cancellation thereof, the Company
will execute and deliver in lieu thereof a new Warrant of like
tenor.

       

      8.    Reservation of Common
Stock. The Company shall at all times reserve and keep available for
issue upon the exercise of Warrants such number of its authorized but unissued
shares of Common Stock as will be sufficient to permit the exercise in full of
all outstanding Warrants. All of the shares of Common Stock issuable upon the
exercise of the rights represented by this Warrant will, upon issuance and
receipt of the Exercise Price therefor, be fully paid and nonassessable, and
free from all preemptive rights, rights of first refusal or first offer, taxes,
liens and charges of whatever nature, with respect to the issuance
thereof.

       

      9.    Registration
Rights.  All shares of Common Stock issuable upon exercise of
this Warrant shall have the registration rights set forth in the Subscription
Agreement, subject to any applicable limitations, by and between the Holder and
the Company, which rights are expressly incorporated and made a part of this
Warrant.

       

      10.    Notices. All notices
and other communications from the Company to the Holder of this Warrant shall be
mailed by first class, registered or certified mail, postage prepaid, to the
address furnished to the Company in writing by the Holder.

       

      11.    Change; Modifications;
Waiver. No terms of this Warrant may be amended, waived or modified
except by the express written consent of the Company and the
Holder.

       

      12.    Headings. The
headings in this Warrant are for purposes of convenience in reference only, and
shall not be deemed to constitute a part hereof.

       

      13.    Governing Law, Etc.
This Warrant shall be governed by and construed solely and exclusively under and
pursuant to the laws of the State of New York as applied to agreements
among New York residents entered into and to be performed entirely within
New York.  Each of the parties hereto expressly and irrevocably
(1) agree that any legal suit, action or proceeding arising out of or relating
to this Warrant will be instituted exclusively in either the New York State
Supreme Court, County of New York, or in the United States District Court
for the Southern District of New York, (2) waive any objection they
may have now or hereafter to the venue of any such suit, action or proceeding,
and (3) consent to the in personam jurisdiction
of either the New York State Supreme Court, County of New York, or the
United States District Court for the Southern District of New York in any
such suit, action or proceeding.  Each of the parties hereto further
agree to accept and acknowledge service of any and all process which may be
served in any such suit, action or proceeding in either the New York State
Supreme Court, County of New York, or in the United States District Court
for the Southern District of 

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

         

        New York
and agree that service of process upon it mailed by certified mail to its
address will be deemed in every respect effective service of process upon it, in
any such suit, action or proceeding.  THE PARTIES HERETO AGREE TO
WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS WARRANT OR ANY DOCUMENT OR AGREEMENT
CONTEMPLATED HEREBY.  THE PARTY PREVAILING THEREIN SHALL BE ENTITLED
TO PAYMENT FROM THE OTHER PARTY HERETO OF ALL OF ITS REASONABLE COUNSEL FEES AND
DISBURSEMENTS.

      

       

      [Signature
page to follow]

       

       

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

       

      [Signature
page to Warrant]

       

      

       

      IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed by its authorized officer as
of the date first indicated above.

       

      
        	
                         

              	
                PURDEN
      LAKE RESOURCE CORP.

              
	 
      	 
      	
                  

              
	 
      	 
      	 
      
	 
      	
                By:  

              	 
      
	 
      	
                Name:

              	
                 

              
	 
      	
                Title:

              	
                 

              

      

      

       

       

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

       

      SUBSCRIPTION
FORM

       

      (To be
executed by the Holder only upon exercise of Warrant)

       

      The
undersigned registered owner of this Warrant irrevocably exercises this Warrant
and purchases _______ shares of Common Stock of Purden Lake Resource Corp.
purchasable with this Warrant, and herewith makes payment therefor, all at the
price and on the terms and conditions specified in this Warrant.

       

      The
Holder shall make payment of the Exercise Price as follows (check
one):

       

      ______
“Cash Exercise” pursuant to Section 2.A of the Warrant

       

      ______
“Cashless Exercise” pursuant to Section 2.B of the Warrant

       

      Notwithstanding
anything to the contrary contained herein, this Exercise Notice shall constitute
a representation by the Holder that, after giving effect to the exercise
provided for in this Exercise Notice, the Holder (together with its affiliates)
will not have beneficial ownership (together with the beneficial ownership of
such Person’s affiliates) of a number of shares of Common Stock which exceeds
the Maximum Percentage of the total outstanding shares of Common Stock as
determined pursuant to the provisions of Section
2C of the Warrant.

       

      The
Holder represents to the Company that, as of the date of exercise:

       

      i.           
the shares of Common Stock being purchased pursuant to this Exercise Notice are
being acquired solely for the Holder’s own account and not as a nominee for any
other party, for investment, and not with a view toward distribution or resale;
and

       

      ii.           the
Holder is an “accredited investor” as such term is defined in Rule 501(a)(1) of
Regulation D promulgated by the Securities and Exchange Commission under the
Securities Act of 1933, as amended.

       

      If the
Holder cannot make the representations required above because they are factually
incorrect, it shall be a condition to the exercise of the Warrant that the
Company receive such other representations as the Company considers necessary,
acting reasonably, to assure the Company that the issuance of securities upon
exercise of this Warrant shall not violate any United States or other applicable
securities laws.

       

      
        	
                Dated:

              	 
      	 
      	
                Name
      of Holder:

              	 
      
	 
      	 
      	 
      	 
      	
                (Print)

              
	 
      	 
      	 
      
	 
      	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              	 
      
	 
      	 
      	
                Title:

              	 
      
	 
      	 
      	
                (Signature
      must conform in all respects to name of holder as specified on the face of
      the Warrant)

              

      

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      EXHIBIT
B

       

      FORM OF
ASSIGNMENT

       

      

       

      FOR VALUE RECEIVED the
undersigned registered owner of this Warrant hereby sells, assigns and transfers
unto the Assignee named below all of the rights of the undersigned under the
within Warrant, with respect to the number of shares of Common Stock set forth
below:

       

      
        	
                Name
      of Assignee

              	 
      	
                Address

              	 
      	
                Number
      of Shares

              
	 
      	 
      	 
      	 
      	 
      

      

      

      

       

      and does
hereby irrevocably constitute and appoint __________________________ Attorney to
make such transfer on the books of Purden Lake Resource Corp. maintained for the
purpose, with full power of substitution in the premises.

       

      
        	
                 Dated:

              	 
      	 
      	 
      
	 
      	 
      	 
      	
                (Signature)

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                (Witness)

              
	 
      	
                 

              	 
      	 
      
	 
      	 
      	 
      

      

      

      The undersigned Assignee of the Warrant
hereby makes to Purden Lake Resource Corp., as of the date hereof, with respect
to the Assignee, all of the representations and warranties made by the Holder,
and the undersigned Assignee agrees to be bound by all the terms and conditions
of the Warrant.

      

      
        	
                 Dated:

              	 
      	 
      	 
      
	 
      	 
      	 
      	
                (Signature)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]