Document:

bancroft8k113007ex10-5.htm

    
      

      

    

    
      Exhibit
        10.5

       

      EXHIBIT
        F

      

      SUBSIDIARY
        GUARANTEE

      

      SUBSIDIARY
        GUARANTEE, dated as of November 30, 2007 (this “Guarantee”), made by each
        of the signatories hereto (together with any other entity that may become
        a
        party hereto as provided herein, the “Guarantors”), in favor of the
        purchasers signatory (the “Purchasers”) to that certain Securities
        Purchase Agreement, dated as of the date hereof, between Bancroft Uranium
        Inc.,
        a Nevada corporation (the “Company”) and the Purchasers.

       

      

      W
        I T N E S S E T H:

      

      WHEREAS,
        pursuant to that certain Securities Purchase Agreement, dated as of the date
        hereof, by and between the Company and the Purchasers (the “Purchase
        Agreement”), the Company has agreed to sell and issue to the Purchasers, and
        the Purchasers have agreed to purchase from the Company the Company’s 8%
        Original Issue Discount Secured Convertible Debentures, due November ___,
        2009 (the
“Debentures”), subject
        to the terms and conditions set forth therein;
        and

      

      WHEREAS,
        each Guarantor will directly benefit from the extension of credit to the
        Company
        represented by the issuance of the Debentures; and

      

      NOW,
        THEREFORE, in consideration of the premises and to induce the Purchasers
        to
        enter into the Purchase Agreement and to carry out the transactions contemplated
        thereby, each Guarantor hereby agrees with the Purchasers as
        follows:

      

      1.         Definitions.
        Unless otherwise defined herein, terms defined in the Purchase Agreement
        and
        used herein shall have the meanings given to them in the Purchase Agreement.
        The
        words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import
        when used in this Guarantee shall refer to this Guarantee as a whole and
        not to
        any particular provision of this Guarantee, and Section and Schedule references
        are to this Guarantee unless otherwise specified. The meanings given to terms
        defined herein shall be equally applicable to both the singular and plural
        forms
        of such terms.  The following terms shall have the following
        meanings:

      

      “Guarantee”
        means this Subsidiary Guarantee, as the same may be amended, supplemented
        or
        otherwise modified from time to time.

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      “Obligations”
        means, in addition to all other costs and expenses of collection incurred
        by
        Purchasers in enforcing any of such Obligations and/or this Guarantee, all of the liabilities and
        obligations (primary, secondary, direct, contingent, sole, joint or several)
        due
        or to become due, or that are now or may be hereafter contracted or acquired,
        or
        owing to, of any Debtor to the Secured Parties, including, without limitation,
        all obligations under this
        Agreement, the Debentures, this Guarantee
        and any other instruments,
        agreements or other documents executed and/or delivered in connection herewith
        or therewith, in each case, whether now or hereafter existing, voluntary
        or
        involuntary, direct or indirect, absolute or contingent, liquidated or
        unliquidated, whether or not jointly owed with others, and whether or not
        from
        time to time decreased or extinguished and later increased, created or incurred,
        and all or any portion of such obligations or liabilities that are paid,
        to the
        extent all or any part of such payment is avoided or recovered directly or
        indirectly from any of the Secured Parties as a preference, fraudulent transfer
        or otherwise as such obligations may be amended, supplemented, converted,
        extended or modified from time to time.  Without limiting the
        generality of the foregoing, the term “Obligations”
        shall include, without limitation: (i)
        principal of, and interest on the Debentures and the loans extended pursuant
        thereto; (ii) any and all other fees, indemnities, costs, obligations and
        liabilities of the Debtors from time to time under or in connection with
        this
        Agreement, the Debentures, the Guarantee and any other instruments, agreements
        or other documents executed and/or delivered in connection herewith or
        therewith; and (iii) all amounts (including but not limited to post-petition
        interest) in respect of the foregoing that would be payable but for the fact
        that the obligations to pay such amounts are unenforceable or not allowable
        due
        to the existence of a bankruptcy, reorganization or similar proceeding involving
        any Debtor.

      

      2.         Guarantee.

      

      (a)      
         Guarantee.

      

      
        	
                 

              	
                (i)

              	
                The
                  Guarantors hereby, jointly and severally, unconditionally and irrevocably,
                  guarantee to the Purchasers and their respective successors, indorsees,
                  transferees and assigns, the prompt and complete payment and performance
                  by the Company when due (whether at the stated maturity, by acceleration
                  or otherwise) of the Obligations.

              

      

      

      
        	
                 

              	
                (ii)

              	
                Anything
                  herein or in any other Transaction Document to the contrary
                  notwithstanding, the maximum liability of each Guarantor hereunder
                  and
                  under the other Transaction Documents shall in no event exceed
                  the amount
                  which can be guaranteed by such Guarantor under applicable federal
                  and
                  state laws, including laws relating to the insolvency of debtors,
                  fraudulent conveyance or transfer or laws affecting the rights
                  of
                  creditors generally (after giving effect to the right of contribution
                  established in Section 2(b)).

              

      

      

      
        	
                 

              	
                (iii)

              	
                Each
                  Guarantor agrees that the Obligations may at any time and from
                  time to
                  time exceed the amount of the liability of such Guarantor hereunder
                  without impairing the guarantee contained in this Section 2 or
                  affecting
                  the rights and remedies of the Purchasers
                  hereunder.

              

      

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        	
                 

              	
                (iv)

              	
                The
                  guarantee contained in this Section 2 shall remain in full force
                  and
                  effect until all the Obligations and the obligations of each Guarantor
                  under the guarantee contained in this Section 2 shall have been
                  satisfied
                  by payment in full.

              

      

      

      
        	
                 

              	
                (v)

              	
                No
                  payment made by the Company, any of the Guarantors, any other guarantor
                  or
                  any other Person or received or collected by the Purchasers from
                  the
                  Company, any of the Guarantors, any other guarantor or any other
                  Person by
                  virtue of any action or proceeding or any set-off or appropriation
                  or
                  application at any time or from time to time in reduction of or
                  in payment
                  of the Obligations shall be deemed to modify, reduce, release or
                  otherwise
                  affect the liability of any Guarantor hereunder which shall,
                  notwithstanding any such payment (other than any payment made by
                  such
                  Guarantor in respect of the Obligations or any payment received
                  or
                  collected from such Guarantor in respect of the Obligations), remain
                  liable for the Obligations up to the maximum liability of such
                  Guarantor
                  hereunder until the Obligations are paid in
                  full.

              

      

      

      
        	
                 

              	
                (vi)

              	
                Notwithstanding
                  anything to the contrary in this Agreement, with respect to any
                  defaulted
                  non-monetary Obligations the specific performance of which by the
                  Guarantors is not reasonably possible (e.g. the issuance of the
                  Company's
                  Common Stock), the Guarantors shall only be liable for making the
                  Purchasers whole on a monetary basis for the Company's failure
                  to perform
                  such Obligations in accordance with the Transaction
                  Documents.

              

      

      

      (b)       Right
        of Contribution. Each Guarantor hereby agrees that to the extent that a
        Guarantor shall have paid more than its proportionate share of any payment
        made
        hereunder, such Guarantor shall be entitled to seek and receive contribution
        from and against any other Guarantor hereunder which has not paid its
        proportionate share of such payment. Each Guarantor's right of contribution
        shall be subject to the terms and conditions of Section 2(c). The provisions
        of
        this Section 2(b) shall in no respect limit the obligations and liabilities
        of
        any Guarantor to the Purchasers, and each Guarantor shall remain liable to
        the
        Purchasers for the full amount guaranteed by such Guarantor
        hereunder.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (c)        No
        Subrogation.  Notwithstanding any payment made by any Guarantor
        hereunder or any set-off or application of funds of any Guarantor by the
        Purchasers, no Guarantor shall be entitled to be subrogated to any of the
        rights
        of the Purchasers against the Company or any other Guarantor or any collateral
        security or guarantee or right of offset held by the Purchasers for the payment
        of the Obligations, nor shall any Guarantor seek or be entitled to seek any
        contribution or reimbursement from the Company or any other Guarantor in
        respect
        of payments made by such Guarantor hereunder, until all amounts owing to
        the
        Purchasers by the Company on account of the Obligations are paid in full.
        If any
        amount shall be paid to any Guarantor on account of such subrogation rights
        at
        any time when all of the Obligations shall not have been paid in full, such
        amount shall be held by such Guarantor in trust for the Purchasers, segregated
        from other funds of such Guarantor, and shall, forthwith upon receipt by
        such
        Guarantor, be turned over to the Purchasers in the exact form received by
        such
        Guarantor (duly indorsed by such Guarantor to the Purchasers, if required),
        to
        be applied against the Obligations, whether matured or unmatured, in such
        order
        as the Purchasers may determine.

      

      (d)        Amendments,
        Etc. With Respect to the Obligations. Each Guarantor shall remain obligated
        hereunder notwithstanding that, without any reservation of rights against
        any
        Guarantor and without notice to or further assent by any Guarantor, any demand
        for payment of any of the Obligations made by the Purchasers may be rescinded
        by
        the Purchasers and any of the Obligations continued, and the Obligations,
        or the
        liability of any other Person upon or for any part thereof, or any collateral
        security or guarantee therefor or right of offset with respect thereto, may,
        from time to time, in whole or in part, be renewed, extended, amended, modified,
        accelerated, compromised, waived, surrendered or released by the Purchasers,
        and
        the Purchase Agreement and the other Transaction Documents and any other
        documents executed and delivered in connection therewith may be amended,
        modified, supplemented or terminated, in whole or in part, as the Purchasers
        may
        deem advisable from time to time, and any collateral security, guarantee
        or
        right of offset at any time held by the Purchasers for the payment of the
        Obligations may be sold, exchanged, waived, surrendered or released. The
        Purchasers shall have no obligation to protect, secure, perfect or insure
        any
        Lien at any time held by them as security for the Obligations or for the
        guarantee contained in this Section 2 or any property subject
        thereto.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (e)        Guarantee
        Absolute and Unconditional. Each Guarantor waives any and all notice of the
        creation, renewal, extension or accrual of any of the Obligations and notice
        of
        or proof of reliance by the Purchasers upon the guarantee contained in this
        Section 2 or acceptance of the guarantee contained in this Section 2; the
        Obligations, and any of them, shall conclusively be deemed to have been created,
        contracted or incurred, or renewed, extended, amended or waived, in reliance
        upon the guarantee contained in this Section 2; and all dealings between
        the
        Company and any of the Guarantors, on the one hand, and the Purchasers, on
        the
        other hand, likewise shall be conclusively presumed to have been had or
        consummated in reliance upon the guarantee contained in this Section 2. Each
        Guarantor waives to the extent permitted by law diligence, presentment,
        protest, demand for payment and notice of default or nonpayment to or upon
        the
        Company or any of the Guarantors with respect to the Obligations. Each Guarantor
        understands and agrees that the guarantee contained in this Section 2 shall
        be
        construed as a continuing, absolute and unconditional guarantee of payment
        without regard to (a) the validity or enforceability of the Purchase Agreement
        or any other Transaction Document, any of the Obligations or any other
        collateral security therefor or guarantee or right of offset with respect
        thereto at any time or from time to time held by the Purchasers, (b) any
        defense, set-off or counterclaim (other than a defense of payment or performance
        or fraud or misconduct by Purchasers) which may at any time be available
        to or
        be asserted by the Company or any other Person against the Purchasers, or
        (c)
        any other circumstance whatsoever (with or without notice to or knowledge
        of the
        Company or such Guarantor) which constitutes, or might be construed to
        constitute, an equitable or legal discharge of the Company for the Obligations,
        or of such Guarantor under the guarantee contained in this Section 2, in
        bankruptcy or in any other instance. When making any demand hereunder or
        otherwise pursuing its rights and remedies hereunder against any Guarantor,
        the
        Purchasers may, but shall be under no obligation to, make a similar demand
        on or
        otherwise pursue such rights and remedies as they may have against the Company,
        any other Guarantor or any other Person or against any collateral security
        or
        guarantee for the Obligations or any right of offset with respect thereto,
        and
        any failure by the Purchasers to make any such demand, to pursue such other
        rights or remedies or to collect any payments from the Company, any other
        Guarantor or any other Person or to realize upon any such collateral security
        or
        guarantee or to exercise any such right of offset, or any release of the
        Company, any other Guarantor or any other Person or any such collateral
        security, guarantee or right of offset, shall not relieve any Guarantor of
        any
        obligation or liability hereunder, and shall not impair or affect the rights
        and
        remedies, whether express, implied or available as a matter of law, of the
        Purchasers against any Guarantor. For the purposes hereof, “demand” shall
        include the commencement and continuance of any legal proceedings.

      

      (f)         Reinstatement.
        The guarantee contained in this Section 2 shall continue to be effective,
        or be
        reinstated, as the case may be, if at any time payment, or any part thereof,
        of
        any of the Obligations is rescinded or must otherwise be restored or returned
        by
        the Purchasers upon the insolvency, bankruptcy, dissolution, liquidation
        or
        reorganization of the Company or any Guarantor, or upon or as a result of
        the
        appointment of a receiver, intervenor or conservator of, or trustee or similar
        officer for, the Company or any Guarantor or any substantial part of its
        property, or otherwise, all as though such payments had not been
        made.

      

      (g)        Payments.
        Each Guarantor hereby guarantees that payments hereunder will be paid to
        the
        Purchasers without set-off or counterclaim in U.S. dollars at the address
        set
        forth or referred to in the Purchase Agreement.

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      3.         Representations
        and Warranties. Each Guarantor hereby makes the following representations
        and warranties to Purchasers as of the date hereof:

      

      (a)        Organization
        and Qualification. The Guarantor is a corporation, duly incorporated,
        validly existing and in good standing under the laws of the applicable
        jurisdiction set forth on Schedule 1, with the requisite corporate power
        and
        authority to own and use its properties and assets and to carry on its business
        as currently conducted. The Guarantor has no subsidiaries other than those
        identified as such on the Disclosure Schedules to the Purchase Agreement.
        The
        Guarantor is duly qualified to do business and is in good standing as a foreign
        corporation in each jurisdiction in which the nature of the business conducted
        or property owned by it makes such qualification necessary, except where
        the
        failure to be so qualified or in good standing, as the case may be, could
        not,
        individually or in the aggregate, (x) adversely affect the legality, validity
        or
        enforceability of any of this Guaranty in any material respect, (y) have
        a
        material adverse effect on the results of operations, assets, prospects,
        or
        financial condition of the Guarantor or (z) adversely impair in any material
        respect the Guarantor's ability to perform fully on a timely basis its
        obligations under this Guaranty (a “Material Adverse
        Effect”).

      

      (b)        Authorization;
        Enforcement.  The Guarantor has the requisite corporate power and
        authority to enter into and to consummate the transactions contemplated by
        this
        Guaranty, and otherwise to carry out its obligations hereunder. The execution
        and delivery of this Guaranty by the Guarantor and the consummation by it
        of the
        transactions contemplated hereby have been duly authorized by all requisite
        corporate action on the part of the Guarantor. This Guaranty has been duly
        executed and delivered by the Guarantor and constitutes the valid and binding
        obligation of the Guarantor enforceable against the Guarantor in accordance
        with
        its terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
        laws
        relating to, or affecting generally the enforcement of, creditors' rights
        and
        remedies or by other equitable principles of general application.

      

      (c)        No
        Conflicts. The execution, delivery and performance of this Guaranty by the
        Guarantor and the consummation by the Guarantor of the transactions contemplated
        thereby do not and will not (i) conflict with or violate any provision of its
        Certificate of Incorporation or By-laws or (ii) conflict with, constitute
        a
        default (or an event which with notice or lapse of time or both would become
        a
        default) under, or give to others any rights of termination, amendment,
        acceleration or cancellation of, any agreement, indenture or instrument to
        which
        the Guarantor is a party, or (iii) result in a violation of any law, rule,
        regulation, order, judgment, injunction, decree or other restriction of any
        court or governmental authority to which the Guarantor is subject (including
        Federal and state securities laws and regulations), or by which any material
        property or asset of the Guarantor is bound or affected, except in the case
        of
        each of clauses (ii) and (iii), such conflicts, defaults, terminations,
        amendments, accelerations, cancellations and violations as could not,
        individually or in the aggregate, have or result in a Material Adverse Effect.
        The business of the Guarantor is not being conducted in violation of any
        law,
        ordinance or regulation of any governmental authority, except for violations
        which, individually or in the aggregate, do not have a Material Adverse
        Effect.

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      (d)        Consents
        and Approvals. The Guarantor is not required to obtain any consent, waiver,
        authorization or order of, or make any filing or registration with, any court
        or
        other federal, state, local, foreign or other governmental authority or other
        person in connection with the execution, delivery and performance by the
        Guarantor of this Guaranty.

      

      (e)        Purchase
        Agreement. The representations and warranties of the Company set forth in
        the Purchase Agreement as they relate to such Guarantor, each of which is
        hereby
        incorporated herein by reference, are true and correct as of each time such
        representations are deemed to be made pursuant to such Purchase Agreement,
        and
        the Purchasers shall be entitled to rely on each of them as if they were
        fully
        set forth herein, provided that each reference in each such representation
        and
        warranty to the Company's knowledge shall, for the purposes of this Section
        3,
        be deemed to be a reference to such Guarantor's knowledge.

      

      (f)         Foreign
        Law.  Each Guarantor has consulted with appropriate foreign legal
        counsel with respect to any of the above representations for which non-U.S.
        law
        is applicable. Such foreign counsel have advised each applicable Guarantor
        that
        such counsel knows of no reason why any of the above representations would
        not
        be true and accurate. Such foreign counsel were provided with copies of this
        Subsidiary Guarantee and the Transaction Documents prior to rendering their
        advice.

      

      4.         Covenants.

      

      (a)        Each
        Guarantor covenants and agrees with the Purchasers that, from and after the
        date
        of this Guarantee until the Obligations shall have been paid in full, such
        Guarantor shall take, and/or shall refrain from taking, as the case may be,
        each
        commercially reasonable action that is necessary to be taken or not taken,
        as
        the case may be, so that no Event of Default is caused by the failure to
        take
        such action or to refrain from taking such action by such
        Guarantor.

       

      (b)        So
        long as any of the Obligations are outstanding, unless Purchasers holding
        at
        least 85% of the aggregate principal amount of the then outstanding Debentures
        shall otherwise consent in writing, each Guarantor will not directly or
        indirectly on or after the date of this Guarantee:

      i.           enter
        into, create, incur, assume or
        suffer to exist any indebtedness for borrowed money of any kind, including
        but
        not limited to, a guarantee, on or with respect to any of its
        property or assets now
        owned or hereafter acquired or any interest therein or any income or profits
        therefrom;

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      ii.          enter
        into, create, incur, assume or
        suffer to exist any liens of any kind, on or with respect to any of its property
        or assets now owned or hereafter acquired or any
        interest therein or
        any income or profits
        therefrom;

      

      iii.         amend
        its certificate of incorporation,
        bylaws or other charter documents so as to adversely affect any rights of
        the
        Holder
        hereunder;

      

      iv.         repay,
        repurchase or offer to repay, repurchase or otherwise acquire more than a
        de
        minimis number of shares of its securities or debt obligations;

      

      v.    
             pay cash dividends on any equity securities of the
        Company;

      

      vi.         enter
        into any transaction with any Affiliate of the Guarantor which would be required
        to be disclosed in any public filing of the Company with the Commission,
        unless
        such transaction is made on an arm’s-length basis and expressly approved by a
        majority of the disinterested directors of the Company (even if less than
        a
        quorum otherwise required for board approval); or

      

      vii.        enter
        into any agreement with respect to any of the foregoing.

      

      5.          Miscellaneous.

      

      (a)        Amendments
        in Writing. None of the terms or provisions of this Guarantee may be waived,
        amended, supplemented or otherwise modified except in writing by the
        Purchasers.

      

      (b)        Notices.
        All notices, requests and demands to or upon the Purchasers or any Guarantor
        hereunder shall be effected in the manner provided for in the Purchase
        Agreement, provided that any such notice, request or demand to or upon any
        Guarantor shall be addressed to such Guarantor at its notice address set
        forth
        on Schedule 5(b).

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (c)        No
        Waiver By Course Of Conduct; Cumulative Remedies. The Purchasers shall not
        by any act (except by a written instrument pursuant to Section 5(a)), delay,
        indulgence, omission or otherwise be deemed to have waived any right or remedy
        hereunder or to have acquiesced in any default under the Transaction Documents
        or Event of Default. No failure to exercise, nor any delay in exercising,
        on the
        part of the Purchasers, any right, power or privilege hereunder shall operate
        as
        a waiver thereof. No single or partial exercise of any right, power or privilege
        hereunder shall preclude any other or further exercise thereof or the exercise
        of any other right, power or privilege. A waiver by the Purchasers of any
        right
        or remedy hereunder on any one occasion shall not be construed as a bar to
        any
        right or remedy which the Purchasers would otherwise have on any future
        occasion. The rights and remedies herein provided are cumulative, may be
        exercised singly or concurrently and are not exclusive of any other rights
        or
        remedies provided by law.

      

      (d)        Enforcement
        Expenses; Indemnification.

      

      
        	
                 

              	
                (i)

              	
                Each
                  Guarantor agrees to pay, or reimburse the Purchasers for, all its
                  costs
                  and expenses incurred in collecting against such Guarantor under
                  the
                  guarantee contained in Section 2 or otherwise enforcing or preserving
                  any
                  rights under this Guarantee and the other Transaction Documents
                  to which
                  such Guarantor is a party, including, without limitation, the reasonable
                  fees and disbursements of counsel to the
                  Purchasers.

              

      

      

      
        	
                 

              	
                (ii)

              	
                Each
                  Guarantor agrees to pay, and to save the Purchasers harmless from,
                  any and
                  all liabilities with respect to, or resulting from any delay in
                  paying,
                  any and all stamp, excise, sales or other taxes which may be payable
                  or
                  determined to be payable in connection with any of the transactions
                  contemplated by this Guarantee.

              

      

      

      
        	
                 

              	
                (iii)

              	
                Each
                  Guarantor agrees to pay, and to save the Purchasers harmless from,
                  any and
                  all liabilities, obligations, losses, damages, penalties, actions,
                  judgments, suits, costs, expenses or disbursements of any kind
                  or nature
                  whatsoever with respect to the execution, delivery, enforcement,
                  performance and administration of this Guarantee to the extent
                  the Company
                  would be required to do so pursuant to the Purchase
                  Agreement.

              

      

      

      
        	
                 

              	
                (iv)

              	
                The
                  agreements in this Section shall survive repayment of the Obligations
                  and
                  all other amounts payable under the Purchase Agreement and the
                  other
                  Transaction Documents.

              

      

      

      (e) 
              Successor and Assigns. This Guarantee
        shall be binding upon the successors and assigns of each Guarantor and shall
        inure to the benefit of the Purchasers and their respective successors and
        assigns; provided that no Guarantor may assign, transfer or delegate any
        of its
        rights or obligations under this Guarantee without the prior written consent
        of
        the Purchasers.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (f)         Set-Off.
        Each Guarantor hereby irrevocably authorizes the Purchasers at any time and
        from
        time to time while an Event of Default under any of the Transaction Documents
        shall have occurred and be continuing, without notice to such Guarantor or
        any
        other Guarantor, any such notice being expressly waived by each Guarantor,
        to
        set-off and appropriate and apply any and all deposits, credits, indebtedness
        or
        claims, in any currency, in each case whether direct or indirect, absolute
        or
        contingent, matured or unmatured, at any time held or owing by the Purchasers
        to
        or for the credit or the account of such Guarantor, or any part thereof in
        such
        amounts as the Purchasers may elect, against and on account of the obligations
        and liabilities of such Guarantor to the Purchasers hereunder and claims
        of
        every nature and description of the Purchasers against such Guarantor, in
        any
        currency, whether arising hereunder, under the Purchase Agreement, any other
        Transaction Document or otherwise, as the Purchasers may elect, whether or
        not
        the Purchasers have made any demand for payment and although such obligations,
        liabilities and claims may be contingent or unmatured. The Purchasers shall
        notify such Guarantor promptly of any such set-off and the application made
        by
        the Purchasers of the proceeds thereof, provided that the failure to give
        such
        notice shall not affect the validity of such set-off and application. The
        rights
        of the Purchasers under this Section are in addition to other rights and
        remedies(including, without limitation, other rights of set-off) which the
        Purchasers may have.

      

      (g)        Counterparts.
        This Guarantee may be executed by one or more of the parties to this Guarantee
        on any number of separate counterparts (including by telecopy), and all of
        said
        counterparts taken together shall be deemed to constitute one and the same
        instrument.

      

      (h)        Severability.
        Any provision of this Guarantee which 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, and any such prohibition or unenforceability in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction.

      

      (i)         Section
        Headings. The Section headings used in this Guarantee are for convenience of
        reference only and are not to affect the construction hereof or be taken
        into
        consideration in the interpretation hereof.

      

      (j)     
           Integration. This Guarantee and the other Transaction
        Documents represent the agreement of the Guarantors and the Purchasers with
        respect to the subject matter hereof and thereof, and there are no promises,
        undertakings, representations or warranties by the Purchasers relative to
        subject matter hereof and thereof not expressly set forth or referred to
        herein
        or in the other Transaction Documents.

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      (k)        Governing
        Law. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
        IN
        ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY
        PRINCIPLES OF CONFLICTS OF LAWS.

      

      (l)         Submission
        to Jurisdictional; Waiver. Each Guarantor hereby irrevocably
        and unconditionally:

      

      
        	
                 

              	
                (i)

              	
                submits
                  for itself and its property in any legal action or proceeding relating
                  to
                  this Guarantee and the other Transaction Documents to which it
                  is a party,
                  or for recognition and enforcement of any judgment in respect thereof,
                  to
                  the non-exclusive general jurisdiction of the Courts of the State
                  of New
                  York, located in New York County, New York, the courts of the United
                  States of America for the Southern District of New York, and appellate
                  courts from any thereof;

              

      

      

      
        	
                 

              	
                (ii)

              	
                consents
                  that any such action or proceeding may be brought in such courts
                  and
                  waives any objection that it may now or hereafter have to the venue
                  of any
                  such action or proceeding in any such court or that such action
                  or
                  proceeding was brought in an inconvenient court and agrees not
                  to plead or
                  claim the same;

              

      

      

      
        	
                 

              	
                (iii)

              	
                agrees
                  that service of process in any such action or proceeding may be
                  effected
                  by mailing a copy thereof by registered or certified mail (or any
                  substantially similar form of mail), postage prepaid, to such Guarantor
                  at
                  its address referred to in the Purchase Agreement or at such other
                  address
                  of which the Purchasers shall have been notified pursuant
                  thereto;

              

      

      

      
        	
                 

              	
                (iv)

              	
                agrees
                  that nothing herein shall affect the right to effect service of
                  process in
                  any other manner permitted by law or shall limit the right to sue
                  in any
                  other jurisdiction; and

              

      

      

      
        	
                 

              	
                (v)

              	
                waives,
                  to the maximum extent not prohibited by law, any right it may have
                  to
                  claim or recover in any legal action or proceeding referred to
                  in this
                  Section any special, exemplary, punitive or consequential
                  damages.

              

      

      

      (m) 
             Acknowledgements.  Each Guarantor
        hereby acknowledges that:

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
        	
                 

              	
                (i)

              	
                it
                  has been advised by counsel in the negotiation, execution and delivery
                  of
                  this Guarantee and the other Transaction Documents to which it
                  is a
                  party;

              

      

      

      
        	
                 

              	
                (ii)

              	
                the
                  Purchasers have no fiduciary relationship with or duty to any Guarantor
                  arising out of or in connection with this Guarantee or any of the
                  other
                  Transaction Documents, and the relationship between the Guarantors,
                  on the
                  one hand, and the Purchasers, on the other hand, in connection
                  herewith or
                  therewith is solely that of debtor and creditor;
                  and

              

      

      

      
        	
                 

              	
                (iii)

              	
                no
                  joint venture is created hereby or by the other Transaction Documents
                  or
                  otherwise exists by virtue of the transactions contemplated hereby
                  among
                  the Guarantors and the Purchasers.

              

      

      

      (n)        Additional
        Guarantors.  The Company shall cause each of its subsidiaries
        formed or acquired on or subsequent to the date hereof to become a Guarantor
        for
        all purposes of this Guarantee by executing and delivering an

      Assumption
        Agreement in the form of Annex 1 hereto.

      

      (o)        Release
        of Guarantors. Subject to Section 2.6, each Guarantor will be released from
        all liability hereunder concurrently with the repayment in full of all amounts
        owed under the Purchase Agreement, the Debentures and the other Transaction
        Documents.

      

      (p)        Seniority.
        The Obligations of each of the Guarantors hereunder rank senior in priority
        to
        any other Indebtedness (as defined in the Purchase Agreement) of such
        Guarantor.

      

      (q)        Waiver
        of Jury Trial. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE
        PURCHASERS, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN
        ANY
        LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY COUNTERCLAIM
        THEREIN.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

      IN
        WITNESS WHEREOF, each of the undersigned has caused this Guarantee to
        be
        duly executed and delivered as of the date first above written.

      

      2146281
        ONTARIO LIMITED

      

      

      

      By:_________________________________

      Name:

      Title:

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      SCHEDULE
        1

      

      GUARANTORS

      

      The
        following are the names, notice addresses and jurisdiction of organization
        of
        each Guarantor.

      

      
        	 	 	 	 	
                COMPANY

              
	
                 

              	 	
                JURISDICTION
                  OF

              	 	
                OWNED
                  BY

              
	 	 	
                INCORPORATION

              	 	
                PERCENTAGE

              

      

      

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      Annex
        1
        to

      SUBSIDIARY
        GUARANTEE

      

      ASSUMPTION
        AGREEMENT, dated as of ____ __, ______ made by ______________________________,
        a
        ______________ corporation (the “Additional Guarantor”), in favor of the
        Purchasers pursuant to the Purchase Agreement referred to below. All capitalized
        terms not defined herein shall have the meaning ascribed to them in such
        Purchase Agreement.

      

      W
        I T N E S S E T H :

      

      WHEREAS,
        Bancroft Uranium Inc., a
        Nevada corporation (the “Company”) and the Purchasers have entered into a
        Securities Purchase Agreement, dated as of November ___, 2007 (as amended,
        supplemented or otherwise modified from time to time, the “Purchase
        Agreement”);

      

      WHEREAS,
        in connection with the
        Purchase Agreement, the Company and its Subsidiaries (other than the Additional
        Guarantor) have entered into the Subsidiary Guarantee, dated as of November
        ___,
        2007 (as amended, supplemented or otherwise modified from time to time, the
        “Guarantee”) in favor of the Purchasers;

      

      WHEREAS,
        the Purchase Agreement
        requires the Additional Guarantor to become a party to the Guarantee;
        and

      

      WHEREAS,
        the Additional Guarantor has
        agreed to execute and

      deliver
        this Assumption Agreement in order to become a party to the
        Guarantee;

      

      NOW,
        THEREFORE, IT IS AGREED:

      

      1.         Guarantee.
        By executing and delivering this Assumption Agreement, the Additional Guarantor,
        as provided in Section 5(n) of the Guarantee, hereby becomes a party to the
        Guarantee as a Guarantor thereunder with the same force and effect as if
        originally named therein as a Guarantor and, without limiting the generality
        of
        the foregoing, hereby expressly assumes all obligations and liabilities of
        a
        Guarantor thereunder. The information set forth in Annex 1-A hereto is hereby
        added to the information set forth in Schedule 1 to the Guarantee. The
        Additional Guarantor hereby represents and warrants that each of the
        representations and warranties contained in Section 3 of the Guarantee is
        true
        and correct on and as the date hereof as to such Additional Guarantor (after
        giving effect to this Assumption Agreement) as if made on and as of such
        date.

      

      2.         Governing
        Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
        INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

       

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the undersigned has caused this Assumption Agreement
        to be duly executed and delivered as of the date first above
        written.

      

      

      

      
        	 	
                [ADDITIONALGUARANTOR]

              
	 	
                By:

              
	 	
                Name:

              
	 	
                Title:

              

      

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

       

       

       

       

       

       

       

       

      

16bancroft8k113007ex10-6.htm

    
      

      

    

    
      Exhibit
        10.6

       

      EXHIBIT
        C

    

     

    NEITHER
      THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF
      THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
      OR
      OTHER LOAN SECURED BY SUCH SECURITIES.

    

    COMMON
      STOCK PURCHASE WARRANT

    

    BANCROFT
      URANIUM INC.

     

    
      	
              Warrant
                Shares: [_______

            	
              Initial
                Exercise Date: November __, 2007

            

    

    

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value
      received, _____________ (the “Holder”) is entitled, upon the terms and
      subject to the limitations on exercise and the conditions hereinafter set forth,
      at any time on or after the date hereof (the “Initial Exercise Date”) and
      on or prior to the close of business on the 5 year anniversary of the Initial
      Exercise Date (the “Termination Date”) but not thereafter, to subscribe
      for and purchase from Bancroft Uranium Inc., a Nevada corporation (the
“Company”), up to ______ shares (the “Warrant Shares”) of Common
      Stock.  The purchase price of one share of Common Stock under this
      Warrant shall be equal to the Exercise Price, as defined in Section
      2(b).

     

    Section
      1.        Definitions.  Capitalized
      terms used and not otherwise defined herein shall have the meanings set forth
      in
      that certain Securities Purchase Agreement (the “Purchase Agreement”),
      dated November 30, 2007, among the Company and the purchasers signatory
      thereto.

     

    Section
      2.         Exercise.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    a)         Exercise
      of Warrant.  Exercise of the purchase rights represented by this
      Warrant may be made, in whole or in part, at any time or times on or after
      the
      Initial Exercise Date and on or before the Termination Date by delivery to
      the
      Company of a duly executed facsimile copy of the Notice of Exercise Form annexed
      hereto (or such other office or agency of the Company as it may designate by
      notice in writing to the registered Holder at the address of the Holder
      appearing on the books of the Company); and, within 3 Trading Days of the date
      said Notice of Exercise is delivered to the Company, the Company shall have
      received  payment of the aggregate Exercise Price of the shares
      thereby purchased by wire transfer or cashier’s check drawn on a United States
      bank.  Notwithstanding anything herein to the contrary, the Holder
      shall not be required to physically surrender this Warrant to the Company until
      the Holder has purchased all of the Warrant Shares available hereunder and
      the
      Warrant has been exercised in full, in which case, the Holder shall surrender
      this Warrant to the Company for cancellation within 3 Trading Days of the date
      the final Notice of Exercise is delivered to the Company.  Partial
      exercises of this Warrant resulting in purchases of a portion of the total
      number of Warrant Shares available hereunder shall have the effect of lowering
      the outstanding number of Warrant Shares purchasable hereunder in an amount
      equal to the applicable number of Warrant Shares purchased.  The
      Holder and the Company shall maintain records showing the number of Warrant
      Shares purchased and the date of such purchases.  The Company shall
      deliver any objection to any Notice of Exercise Form within 1 Business Day
      of
      receipt of such notice.  In the event of any dispute or discrepancy,
      the records of the Holder shall be controlling and determinative in the absence
      of manifest error. The Holder and any assignee, by acceptance of this
      Warrant, acknowledge and agree that, by reason of the provisions of this
      paragraph, following the purchase of a portion of the Warrant Shares hereunder,
      the number of Warrant Shares available for purchase hereunder at any given
      time
      may be less than the amount stated on the face hereof.

     

    b)         Exercise
      Price.  The exercise price per share of the Common Stock under
      this Warrant shall be $0.30, subject to adjustment hereunder
      (the “Exercise Price”).

     

    c)         Cashless
      Exercise.  If at any time after the earlier of (i) the one year
      anniversary of the date of the Purchase Agreement and (ii) the completion of
      the
      then-applicable holding period required by Rule 144, or any successor provision
      then in effect, there is no effective Registration Statement registering, or
      no
      current prospectus available for, the resale of the Warrant Shares by the
      Holder, then this Warrant may also be exercised at such time by means of a
      “cashless exercise” in which the Holder shall be entitled to receive a
      certificate for the number of Warrant Shares equal to the quotient obtained
      by
      dividing [(A-B) (X)] by (A), where:

     

    
      	
               

            	
              (A)
                =

            	
              the
                VWAP on the Trading Day immediately preceding the date of such
                election;

            

    

    

    
      	
               

            	
              (B)
                =

            	
              the
                Exercise Price of this Warrant, as adjusted;
                and

            

    

    

    
      	
               

            	
              (X)
                =

            	
              the
                number of Warrant Shares 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.

            

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Notwithstanding
      anything herein to the contrary, on the Termination Date, this Warrant shall
      be
      automatically exercised via cashless exercise pursuant to this Section
      2(c).

    

    d)         Exercise
      Limitations.

     

    i.    
           Holder’s
      Restrictions.  The Company shall not effect any exercise of this
      Warrant, and a Holder shall not have the right to exercise any portion of this
      Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
      effect to such issuance after exercise as set forth on the applicable Notice
      of
      Exercise, the Holder (together with the Holder’s Affiliates, and any other
      person or entity acting as a group together with the Holder or any of the
      Holder’s Affiliates), would beneficially own in excess of the Beneficial
      Ownership Limitation (as defined below).  For purposes of the foregoing
      sentence, the number of shares of Common Stock beneficially owned by the Holder
      and its Affiliates shall include the number of shares of Common Stock issuable
      upon exercise of this Warrant with respect to which such determination is being
      made, but shall exclude the number of shares of Common Stock which would be
      issuable upon (A) exercise of the remaining, nonexercised portion of this
      Warrant beneficially owned by the Holder or any of its Affiliates and (B)
      exercise or conversion of the unexercised or nonconverted portion of any other
      securities of the Company (including, without limitation, any
      other  Common Stock Equivalents) subject to a limitation on conversion
      or exercise analogous to the limitation contained herein beneficially owned
      by
      the Holder or any of its affiliates.  Except as set forth in the preceding
      sentence, for purposes of this Section 2(d)(i), beneficial ownership shall
      be
      calculated in accordance with Section 13(d) of the Exchange Act and the rules
      and regulations promulgated thereunder, it being acknowledged by the Holder
      that
      the Company is not representing to the Holder that such calculation is in
      compliance with Section 13(d) of the Exchange Act and the Holder is solely
      responsible for any schedules required to be filed in accordance
      therewith.   To the extent that the limitation contained in this
      Section 2(d)(i) applies, the determination of whether this Warrant is
      exercisable (in relation to other securities owned by the Holder together with
      any Affiliates) and of which portion of this Warrant is exercisable shall be
      in
      the sole discretion of the Holder, and the submission of a Notice of Exercise
      shall be deemed to be the Holder’s determination of whether this Warrant is
      exercisable (in relation to other securities owned by the Holder together with
      any Affiliates) and of which portion of this Warrant is exercisable, in each
      case subject to the Beneficial Ownership Limitation, and the Company shall
      have
      no obligation to verify or confirm the accuracy of such
      determination.   In addition, a determination as to any group
      status as contemplated above shall be determined in accordance with Section
      13(d) of the Exchange Act and the rules and regulations promulgated
      thereunder.  For purposes of this Section 2(d)(i), in determining the
      number of outstanding shares of Common Stock, a Holder may rely on the number
      of
      outstanding shares of Common Stock as reflected in (x) the Company’s most recent
      periodic or annual report, as the case may be, (y) a more recent public
      announcement by the Company or (z) any other notice by the Company or the
      Company’s Transfer Agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written or oral request of a Holder, the Company
      shall within two Trading Days confirm orally and in writing to the Holder the
      number of shares of Common Stock then outstanding.  In any case, the number
      of outstanding shares of Common Stock shall be determined after giving effect
      to
      the conversion or exercise of securities of the Company, including this Warrant,
      by the Holder or its Affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported.  The “Beneficial
      Ownership Limitation” shall be 4.99% of the number of shares of the Common
      Stock outstanding immediately after giving effect to the issuance of shares
      of
      Common Stock issuable upon exercise of this Warrant.  The Holder, upon
      not less than 61 days’ prior notice to the Company, may increase or decrease the
      Beneficial Ownership Limitation provisions of this Section 2(d)(i), provided
      that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number
      of shares of the Common Stock outstanding immediately after giving effect to
      the
      issuance of shares of Common Stock upon exercise of this Warrant held by the
      Holder and the provisions of this Section 2(d)(i) shall continue to
      apply.  Any such increase or decrease will not be effective until the
      61st day after
      such notice is delivered to the Company.  The provisions of this
      paragraph shall be construed and implemented in a manner otherwise than in
      strict conformity with the terms of this Section 2(d)(i) to correct this
      paragraph (or any portion hereof) which may be defective or inconsistent with
      the intended Beneficial Ownership Limitation herein contained or to make changes
      or supplements necessary or desirable to properly give effect to such
      limitation. The limitations contained in this paragraph shall apply to a
      successor holder of this Warrant.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    e)         Mechanics
      of Exercise.

     

    i.          Delivery
      of Certificates Upon Exercise.  Certificates for shares purchased
      hereunder shall be transmitted by the transfer agent of the Company to the
      Holder by crediting the account of the Holder’s prime broker with the Depository
      Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”)
      system if the Company is a participant in such system and there is an effective
      Registration Statement permitting the resale of the Warrant Shares by the
      Holder, and otherwise by physical delivery to the address specified by the
      Holder in the Notice of Exercise within 3 Trading Days from the delivery to
      the
      Company of the Notice of Exercise Form, surrender of this Warrant (if required)
      and payment of the aggregate Exercise Price as set forth above (“Warrant
      Share Delivery Date”).  This Warrant shall be deemed to have been
      exercised on the date the Exercise Price is received by the
      Company.  The Warrant Shares shall be deemed to have been issued, and
      Holder or any other person so designated to be named therein shall be deemed
      to
      have become a holder of record of such shares for all purposes, as of the date
      the Warrant has been exercised by payment to the Company of the Exercise Price
      (or by cashless exercise, if permitted) and all taxes required to be paid by
      the
      Holder, if any, pursuant to Section 2(e)(vi) prior to the issuance of such
      shares, have been paid. If the Company fails for any reason to deliver to the
      Holder certificates evidencing the Warrant Shares subject to a Notice of
      Exercise by the Warrant Share Delivery Date, the Company shall pay to the
      Holder, in cash, as liquidated damages and not as a penalty, for each $1,000
      of
      Warrant Shares subject to such exercise (based on the VWAP of the Common Stock
      on the date of the applicable Notice of Exercise), $10 per Trading Day
      (increasing to $20 per Trading Day on the fifth Trading Day after such
      liquidated damages begin to accrue) for each Trading Day after such Warrant
      Share Delivery Date until such certificates are delivered.

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    ii.           Delivery
      of New Warrants Upon Exercise.  If this Warrant shall have been
      exercised in part, the Company shall, at the request of a Holder and upon
      surrender of this Warrant certificate, at the time of delivery of the
      certificate or certificates representing Warrant Shares, deliver to Holder
      a new
      Warrant evidencing the rights of Holder to purchase the unpurchased Warrant
      Shares called for by this Warrant, which new Warrant shall in all other respects
      be identical with this Warrant.

     

    iii.           Rescission
      Rights.  If the Company fails to cause its transfer agent to
      transmit to the Holder a certificate or certificates representing the Warrant
      Shares pursuant to Section 2(e)(i) by the Warrant Share Delivery Date, then
      the
      Holder will have the right to rescind such exercise.

     

    iv.           Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.  In addition to any other rights available to the
      Holder, if the Company fails to cause its transfer agent to transmit to the
      Holder a certificate or certificates representing the Warrant Shares pursuant
      to
      an exercise on or before the Warrant Share Delivery Date, and if after such
      date
      the Holder is required by its broker to purchase (in an open market transaction
      or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of
      Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant
      Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the Company shall (1) pay in cash to the Holder the
      amount by which (x) the Holder’s total purchase price (including brokerage
      commissions, if any) for the shares of Common Stock so purchased exceeds (y)
      the
      amount obtained by multiplying (A) the number of Warrant Shares that the Company
      was required to deliver to the Holder in connection with the exercise at issue
      times (B) the price at which the sell order giving rise to such purchase
      obligation was executed, and (2) at the option of the Holder, either reinstate
      the portion of the Warrant and equivalent number of Warrant Shares for which
      such exercise was not honored or deliver to the Holder the number of shares
      of
      Common Stock that would have been issued had the Company timely complied with
      its exercise and delivery obligations hereunder.  For example, if the
      Holder purchases Common Stock having a total purchase price of $11,000 to cover
      a Buy-In with respect to an attempted exercise of shares of Common Stock with
      an
      aggregate sale price giving rise to such purchase obligation of $10,000, under
      clause (1) of the immediately preceding sentence the Company shall be required
      to pay the Holder $1,000. The Holder shall provide the Company written notice
      indicating the amounts payable to the Holder in respect of the Buy-In and,
      upon
      request of the Company, evidence of the amount of such loss.  Nothing
      herein shall limit a Holder’s right to pursue any other remedies available to it
      hereunder, at law or in equity including, without limitation, a decree of
      specific performance and/or injunctive relief with respect to the Company’s
      failure to timely deliver certificates representing shares of Common Stock
      upon
      exercise of the Warrant as required pursuant to the terms hereof.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    v.      
        No Fractional Shares or Scrip.  No fractional
      shares or scrip representing fractional shares shall be issued upon the exercise
      of this Warrant.  As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.

     

    vi.         Charges,
      Taxes and Expenses.  Issuance of certificates for Warrant Shares
      shall be made without charge to the Holder for any issue or transfer tax or
      other incidental expense in respect of the issuance of such certificate, all
      of
      which taxes and expenses shall be paid by the Company, and such certificates
      shall be issued in the name of the Holder or in such name or names as may be
      directed by the Holder; provided, however, that in the event
      certificates for Warrant Shares are to be issued in a name other than the name
      of the Holder, this Warrant when surrendered for exercise shall be accompanied
      by the Assignment Form attached hereto duly executed by the Holder; and the
      Company may require, as a condition thereto, the payment of a sum sufficient
      to
      reimburse it for any transfer tax incidental thereto.

     

    vii.        Closing
      of Books.  The Company will not close its stockholder books or
      records in any manner which prevents the timely exercise of this Warrant,
      pursuant to the terms hereof.

     

    
      	
            	
              Section
                3.

            	
              Certain
                Adjustments.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    a)         Stock
      Dividends and Splits. If the Company, at any time while this Warrant is
      outstanding: (A) pays a stock dividend or otherwise make a distribution or
      distributions on shares of its Common Stock or any other equity or equity
      equivalent securities payable in shares of Common Stock (which, for avoidance
      of
      doubt, shall not include any shares of Common Stock issued by the Company upon
      exercise of this Warrant), (B) subdivides outstanding shares of Common Stock
      into a larger number of shares, (C) combines (including by way of reverse stock
      split) outstanding shares of Common Stock into a smaller number of shares,
      or
      (D) issues by reclassification of shares of the Common Stock any shares of
      capital stock of the Company, then in each case the Exercise Price shall be
      multiplied by a fraction of which the numerator shall be the number of shares
      of
      Common Stock (excluding treasury shares, if any) outstanding immediately before
      such event and of which the denominator shall be the number of shares of Common
      Stock outstanding immediately after such event and the number of shares issuable
      upon exercise of this Warrant shall be proportionately adjusted such that the
      aggregate Exercise Price of this Warrant shall remain unchanged.  Any
      adjustment made pursuant to this Section 3(a) shall become effective immediately
      after the record date for the determination of stockholders entitled to receive
      such dividend or distribution and shall become effective immediately after
      the
      effective date in the case of a subdivision, combination or
      re-classification.

     

    b)         Subsequent
      Equity Sales. If the Company or any Subsidiary thereof, as applicable, at
      any time while this Warrant is outstanding, shall sell or grant any option
      to
      purchase, or sell or grant any right to reprice, or otherwise dispose of or
      issue (or announce any offer, sale, grant or any option to purchase or other
      disposition) any Common Stock or Common Stock Equivalents entitling any Person
      to acquire shares of Common Stock, at an effective price per share less than
      the
      then Exercise Price (such lower price, the “Base Share Price” and such
      issuances collectively, a “Dilutive Issuance”) (if the holder of the
      Common Stock or Common Stock Equivalents so issued shall at any time, whether
      by
      operation of purchase price adjustments, reset provisions, floating conversion,
      exercise or exchange prices or otherwise, or due to warrants, options or rights
      per share which are issued in connection with such issuance, be entitled to
      receive shares of Common Stock at an effective price per share which is less
      than the Exercise Price, such issuance shall be deemed to have occurred for
      less
      than the Exercise Price on such date of the Dilutive Issuance), then the
      Exercise Price shall be reduced and only reduced to equal the Base Share Price
      and the number of Warrant Shares issuable hereunder shall be increased such
      that
      the aggregate Exercise Price payable hereunder, after taking into account the
      decrease in the Exercise Price, shall be equal to the aggregate Exercise Price
      prior to such adjustment.  Such adjustment shall be made whenever such
      Common Stock or Common Stock Equivalents are issued.  Notwithstanding
      the foregoing, no adjustments shall be made, paid or issued under this Section
      3(b) in respect of an Exempt Issuance.  The Company shall notify the
      Holder in writing, no later than the Trading Day following the issuance of
      any
      Common Stock or Common Stock Equivalents subject to this Section 3(b),
      indicating therein the applicable issuance price, or applicable reset price,
      exchange price, conversion price and other pricing terms (such notice the
“Dilutive Issuance Notice”).  For purposes of clarification,
      whether or not the Company provides a Dilutive Issuance Notice pursuant to
      this
      Section 3(b), upon the occurrence of any Dilutive Issuance, after the date
      of
      such Dilutive Issuance the Holder is entitled to receive a number of Warrant
      Shares based upon the Base Share Price regardless of whether the Holder
      accurately refers to the Base Share Price in the Notice of
      Exercise.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    c)         Subsequent
      Rights Offerings.  If the Company, at any time while the Warrant
      is outstanding, shall issue rights, options or warrants to all holders of Common
      Stock (and not to Holders) entitling them to subscribe for or purchase shares
      of
      Common Stock at a price per share less than the VWAP at the record date
      mentioned below, then the Exercise Price shall be multiplied by a fraction,
      of
      which the denominator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the number
      of additional shares of Common Stock offered for subscription or purchase,
      and
      of which the numerator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the number
      of shares which the aggregate offering price of the total number of shares
      so
      offered (assuming receipt by the Company in full of all consideration payable
      upon exercise of such rights, options or warrants) would purchase at such
      VWAP.  Such adjustment shall be made whenever such rights or warrants
      are issued, and shall become effective immediately after the record date for
      the
      determination of stockholders entitled to receive such rights, options or
      warrants.

     

    d)         Pro
      Rata Distributions.  If the Company, at any time while this
      Warrant is outstanding, shall distribute to all holders of Common Stock (and
      not
      to Holders of the Warrants) evidences of its indebtedness or assets (including
      cash and cash dividends) or rights or warrants to subscribe for or purchase
      any
      security other than the Common Stock (which shall be subject to Section 3(b)),
      then in each such case the Exercise Price shall be adjusted by multiplying
      the
      Exercise Price in effect immediately prior to the record date fixed for
      determination of stockholders entitled to receive such distribution by a
      fraction of which the denominator shall be the VWAP determined as of the record
      date mentioned above, and of which the numerator shall be such VWAP on such
      record date less the then per share fair market value at such record date of
      the
      portion of such assets or evidence of indebtedness so distributed applicable
      to
      one outstanding share of the Common Stock as determined by the Board of
      Directors in good faith.  In either case the adjustments shall be
      described in a statement provided to the Holder of the portion of assets or
      evidences of indebtedness so distributed or such subscription rights applicable
      to one share of Common Stock.  Such adjustment shall be made whenever
      any such distribution is made and shall become effective immediately after
      the
      record date mentioned above.

     

     

     

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    e)         Fundamental
      Transaction. If, at any time while this Warrant is outstanding, (A) the
      Company effects any merger or consolidation of the Company with or into another
      Person, (B) the Company effects any sale of all or substantially all of its
      assets in one or a series of related transactions, (C) any tender offer or
      exchange offer (whether by the Company or another Person) is completed pursuant
      to which holders of Common Stock are permitted to tender or exchange their
      shares for other securities, cash or property, or (D) the Company effects any
      reclassification of the Common Stock or any compulsory share exchange pursuant
      to which the Common Stock is effectively converted into or exchanged for other
      securities, cash or property (each “Fundamental Transaction”), then, upon
      any subsequent exercise of this Warrant, the Holder shall have the right to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, the number
      of shares of Common Stock of the successor or acquiring corporation or of the
      Company, if it is the surviving corporation, and any additional consideration
      (the “Alternate Consideration”) receivable as a result of such merger,
      consolidation or disposition of assets by a holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event. For purposes of any such exercise, the determination of the Exercise
      Price shall be appropriately adjusted to apply to such Alternate Consideration
      based on the amount of Alternate Consideration issuable in respect of one share
      of Common Stock in such Fundamental Transaction, and the Company shall apportion
      the Exercise Price among the Alternate Consideration in a reasonable manner
      reflecting the relative value of any different components of the Alternate
      Consideration.  If holders of Common Stock are given any choice as to
      the securities, cash or property to be received in a Fundamental Transaction,
      then the Holder shall be given the same choice as to the Alternate Consideration
      it receives upon any exercise of this Warrant following such Fundamental
      Transaction.  To the extent necessary to effectuate the foregoing
      provisions, any successor to the Company or surviving entity in such Fundamental
      Transaction shall issue to the Holder a new warrant consistent with the
      foregoing provisions and evidencing the Holder’s right to exercise such warrant
      into Alternate Consideration. The terms of any agreement pursuant to which
      a
      Fundamental Transaction is effected shall include terms requiring any such
      successor or surviving entity to comply with the provisions of this Section
      3(e)
      and insuring that this Warrant (or any such replacement security) will be
      similarly adjusted upon any subsequent transaction analogous to a Fundamental
      Transaction. Notwithstanding anything to the contrary, in the event of a
      Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3
      transaction” as defined in Rule 13e-3 under the Securities Exchange Act of 1934,
      as amended, or (3) a Fundamental Transaction involving a person or entity not
      traded on a national securities exchange, the Nasdaq Global Select Market,
      the
      Nasdaq Global Market, or the Nasdaq Capital Market, the Company or any successor
      entity shall pay at the Holder’s option, exercisable at any time concurrently
      with or within 30 days after the consummation of the Fundamental Transaction,
      an
      amount of cash equal to the value of this Warrant as determined in accordance
      with the Black Scholes Option Pricing Model obtained from the “OV” function on
      Bloomberg L.P. using (i) a price per share of Common Stock equal to the VWAP
      of
      the Common Stock for the Trading Day immediately preceding the date of
      consummation of the applicable  Fundamental Transaction, (ii) a
      risk-free interest rate corresponding to the U.S. Treasury rate for a period
      equal to the remaining term of this Warrant as of the date of consummation
      of
      the applicable Fundamental Transaction and (iii) an expected volatility equal
      to
      the 100 day volatility obtained from the “HVT” function on Bloomberg L.P.
      determined as of the Trading Day immediately following the public announcement
      of the applicable Fundamental Transaction.

     

    f)          Calculations.
      All calculations under this Section 3 shall be made to the nearest cent or
      the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    g)         Voluntary
      Adjustment By Company. The Company may at any time during the term of this
      Warrant reduce the then current Exercise Price to any amount and for any period
      of time deemed appropriate by the Board of Directors of the
      Company.

     

    h)         Notice
      to Holder.

     

    i.       
        Adjustment to Exercise Price. Whenever the Exercise Price is
      adjusted pursuant to any provision of this Section 3, the Company shall promptly
      mail to the Holder a notice setting forth the Exercise Price after such
      adjustment and setting forth a brief statement of the facts requiring such
      adjustment. If the Company enters into a Variable Rate Transaction (as defined
      in the Purchase Agreement), despite the prohibition thereon in the Purchase
      Agreement, the Company shall be deemed to have issued Common Stock or Common
      Stock Equivalents at the lowest possible conversion or exercise price at which
      such securities may be converted or exercised.

     

    ii.          Notice
      to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or
      any other distribution in whatever form) on the Common Stock; (B) the Company
      shall declare a special nonrecurring cash dividend on or a redemption of the
      Common Stock; (C) the Company shall authorize the granting to all holders of
      the
      Common Stock rights or warrants to subscribe for or purchase any shares of
      capital stock of any class or of any rights; (D) the approval of any
      stockholders of the Company shall be required in connection with any
      reclassification of the Common Stock, any consolidation or merger to which
      the
      Company is a party, any sale or transfer of all or substantially all of the
      assets of the Company, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; (E) the Company shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Company; then, in each case, the Company shall cause to
      be
      mailed to the Holder at its last address as it shall appear upon the Warrant
      Register of the Company, at least 20 calendar days prior to the applicable
      record or effective date hereinafter specified, a notice stating (x) the date
      on
      which a record is to be taken for the purpose of such dividend, distribution,
      redemption, rights or warrants, or if a record is not to be taken, the date
      as
      of which the holders of the Common Stock of record to be entitled to such
      dividend, distributions, redemption, rights or warrants are to be determined
      or
      (y) the date on which such reclassification, consolidation, merger, sale,
      transfer or share exchange is expected to become effective or close, and the
      date as of which it is expected that holders of the Common Stock of record
      shall
      be entitled to exchange their shares of the Common Stock for securities, cash
      or
      other property deliverable upon such reclassification, consolidation, merger,
      sale, transfer or share exchange; provided that the failure to mail such notice
      or any defect therein or in the mailing thereof shall not affect the validity
      of
      the corporate action required to be specified in such notice.  The
      Holder is entitled to exercise this Warrant during the period commencing on
      the
      date of such notice to the effective date of the event triggering such
      notice.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Section
      4.         Transfer of
      Warrant.

     

    a)          Transferability.  Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase
      Agreement, this Warrant and all rights hereunder (including, without limitation,
      any registration rights) are transferable, in whole or in part, upon surrender
      of this Warrant at the principal office of the Company or its designated agent,
      together with a written assignment of this Warrant substantially in the form
      attached hereto duly executed by the Holder or its agent or attorney and funds
      sufficient to pay any transfer taxes payable upon the making of such
      transfer.  Upon such surrender and, if required, such payment, the
      Company shall execute and deliver a new Warrant or Warrants in the name of
      the
      assignee or assignees and in the denomination or denominations specified in
      such
      instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, and this Warrant shall
      promptly be cancelled.  A Warrant, if properly assigned, may be
      exercised by a new holder for the purchase of Warrant Shares without having
      a
      new Warrant issued.

     

    b)         New
      Warrants. This Warrant may be divided or combined with other Warrants upon
      presentation hereof at the aforesaid office of the Company, together with a
      written notice specifying the names and denominations in which new Warrants
      are
      to be issued, signed by the Holder or its agent or attorney.  Subject
      to compliance with Section 4(a), as to any transfer which may be involved in
      such division or combination, the Company shall execute and deliver a new
      Warrant or Warrants in exchange for the Warrant or Warrants to be divided or
      combined in accordance with such notice. All Warrants issued on transfers or
      exchanges shall be dated the Initial Exercise Date and shall be identical with
      this Warrant except as to the number of Warrant Shares issuable pursuant
      thereto.

     

    c)         Warrant
      Register. The Company shall register this Warrant, upon records to be
      maintained by the Company for that purpose (the “Warrant Register”), in
      the name of the record Holder hereof from time to time.  The Company
      may deem and treat the registered Holder of this Warrant as the absolute owner
      hereof for the purpose of any exercise hereof or any distribution to the Holder,
      and for all other purposes, absent actual notice to the contrary.

     

    d)         Transfer
      Restrictions. If,
      at the time of the surrender
      of this Warrant in
      connection with any transfer of this Warrant, the transfer of this Warrant shall
      not be registered pursuant to an effective registration
      statement under the Securities
      Act and under
      applicable state securities or
      blue sky laws, the Company may require, as a condition of allowing such
      transfer, that the
      Holder or transferee of this
      Warrant, as the case may be, comply with the provisions
      of Section
      5.7 of the Purchase Agreement.

     

    Section
      5.         Miscellaneous.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    a)         No
      Rights as Shareholder Until Exercise.  This Warrant does not
      entitle the Holder to any voting rights or other rights as a shareholder of
      the
      Company prior to the exercise hereof as set forth in Section
      2(e)(i).

     

    b)         Loss,
      Theft, Destruction or Mutilation of Warrant. The Company covenants that upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft, destruction or mutilation of this Warrant or any stock certificate
      relating to the Warrant Shares, and in case of loss, theft or destruction,
      of
      indemnity or security reasonably satisfactory to it (which, in the case of
      the
      Warrant, shall not include the posting of any bond), and upon surrender and
      cancellation of such Warrant or stock certificate, if mutilated, the Company
      will make and deliver a new Warrant or stock certificate of like tenor and
      dated
      as of such cancellation, in lieu of such Warrant or stock
      certificate.

     

    c)         Saturdays,
      Sundays, Holidays, etc.  If the last or appointed day for the
      taking of any action or the expiration of any right required or granted herein
      shall not be a Business Day, then such action may be taken or such right may
      be
      exercised on the next succeeding Business Day.

     

    d)         Authorized
      Shares.

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant.  The Company further covenants
      that its issuance of this Warrant shall constitute full authority to its
      officers who are charged with the duty of executing stock certificates to
      execute and issue the necessary certificates for the Warrant Shares upon the
      exercise of the purchase rights under this Warrant.  The Company will
      take all such reasonable action as may be necessary to assure that such Warrant
      Shares may be issued as provided herein without violation of any applicable
      law
      or regulation, or of any requirements of the Trading Market upon which the
      Common Stock may be listed.  The Company covenants that all Warrant
      Shares which may be issued upon the exercise of the purchase rights represented
      by this Warrant will, upon exercise of the purchase rights represented by this
      Warrant, be duly authorized, validly issued, fully paid and nonassessable and
      free from all taxes, liens and charges created by the Company in respect of
      the
      issue thereof (other than taxes in respect of any transfer occurring
      contemporaneously with such issue).

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment.  Without limiting the generality of the foregoing, the
      Company will (a) not increase the par value of any Warrant Shares above the
      amount payable therefor upon such exercise immediately prior to such increase
      in
      par value, (b) take all such action as may be necessary or appropriate in order
      that the Company may validly and legally issue fully paid and nonassessable
      Warrant Shares upon the exercise of this Warrant, and (c) use commercially
      reasonable efforts to obtain all such authorizations, exemptions or consents
      from any public regulatory body having jurisdiction thereof as may be necessary
      to enable the Company to perform its obligations under this
      Warrant.

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    e)         Jurisdiction.
      All questions concerning the construction, validity, enforcement and
      interpretation of this Warrant shall be determined in accordance with the
      provisions of the Purchase Agreement.

     

    f)          Restrictions.  The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    g)          Nonwaiver
      and Expenses.  No course of dealing or any delay or failure to
      exercise any right hereunder on the part of Holder shall operate as a waiver
      of
      such right or otherwise prejudice Holder’s rights, powers or remedies,
      notwithstanding the fact that all rights hereunder terminate on the Termination
      Date.  If the Company willfully and knowingly fails to comply with any
      provision of this Warrant, which results in any material damages to the Holder,
      the Company shall pay to Holder such amounts as shall be sufficient to cover
      any
      costs and expenses including, but not limited to, reasonable attorneys’ fees,
      including those of appellate proceedings, incurred by Holder in collecting
      any
      amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
      or remedies hereunder.

     

    h)         Notices.  Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    i)          Limitation
      of Liability.  No provision hereof, in the absence of any
      affirmative action by Holder to exercise this Warrant to purchase Warrant
      Shares, and no enumeration herein of the rights or privileges of Holder, shall
      give rise to any liability of Holder for the purchase price of any Common Stock
      or as a stockholder of the Company, whether such liability is asserted by the
      Company or by creditors of the Company.

     

    j)          Remedies.  Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant.  The Company agrees that monetary damages would
      not be adequate compensation for any loss incurred by reason of a breach by
      it
      of the provisions of this Warrant and hereby agrees to waive and not to assert
      the defense in any action for specific performance that a remedy at law would
      be
      adequate.

     

    k)         Successors
      and Assigns.  Subject to applicable securities laws, this Warrant
      and the rights and obligations evidenced hereby shall inure to the benefit
      of
      and be binding upon the successors of the Company and the successors and
      permitted assigns of Holder.  The provisions of this Warrant are
      intended to be for the benefit of all Holders from time to time of this Warrant
      and shall be enforceable by the Holder or holder of Warrant Shares.

     

    l)          Amendment.  This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

     

    m)        Severability.  Wherever
      possible, each provision of this Warrant shall be interpreted in such manner
      as
      to be effective and valid under applicable law, but if any provision of this
      Warrant shall be prohibited by or invalid under applicable law, such provision
      shall be ineffective to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provisions or the remaining provisions of
      this Warrant.

     

    n)         Headings.  The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

    

    ********************

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

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

     

    

    

    

    

    
      	 	
              BANCROFT
                URANIUM INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 	 

    

    

    

    

    

    

    

    

    

    

     

     

    
 

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    NOTICE
      OF EXERCISE

    

    
      	
              TO:

            	
              BANCROFT
                URANIUM INC.

            

    

    

    (1) 
      The undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2)  Payment
      shall take the form of (check applicable box):

     

    [  ]
      in lawful money of the United States; or

     

    [  ]
      [if permitted] the cancellation of such number of Warrant Shares as is
      necessary, in accordance with the formula set forth in subsection 2(c), to
      exercise this Warrant with respect to the maximum number of Warrant Shares
      purchasable pursuant to the cashless exercise procedure set forth in subsection
      2(c).

     

    (3)  Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    ___________________________________

     

     

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    

    
      ___________________________________

       

      ___________________________________

      ___________________________________

    

    (4)  Accredited
      Investor.  The undersigned is an “accredited investor” as defined
      in Regulation D promulgated under the Securities Act of 1933, as
      amended.

    

    [SIGNATURE
      OF HOLDER]

    

    Name
      of
      Investing Entity:
      _____________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _____________________________

    Name
      of
      Authorized Signatory:
 ________________________________________________

    Title
      of
      Authorized Signatory:  
_________________________________________________

    Date:
      ____________________________________________________________________

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information.

    Do
      not
      use this form to exercise the warrant.)

     

    

    

    FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:  ______________,
      _______

    

    

    Holder’s
      Signature:    _____________________________

    

    Holder’s
      Address:     _____________________________

    

      
      _____________________________

    

    

    

    Signature
      Guaranteed:  ___________________________________________

    

    

    NOTE:  The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust
      company.  Officers of corporations and those acting in a fiduciary or
      other representative capacity should file proper evidence of authority to assign
      the foregoing Warrant.

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