Document:

phrx_ex104.htm

EXHIBIT 10.4

 

 

 

Pharmagen, Inc.

 

____________________________

SECURITIES PURCHASE AGREEMENT

Up to 500,000 shares

of

Series C Convertible Preferred Stock

$1.00 per share

Up to $500,000

__________________________

 

 

 

 

  

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SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is entered into on December [insert], 2013 (the “Effective Date”) by and between Pharmagen, Inc., a Nevada corporation (the “Company”), and [insert], an [insert] (the “Purchaser”).  The Company and the Purchaser shall each be referred to as a “Party” and collectively as the “Parties.”

AGREEMENT

1.           PURCHASE OF SHARES:  On the Closing Date (as hereinafter defined), subject to the terms and conditions set forth in this Agreement, the Purchaser hereby agrees to purchase, and the Company hereby agrees to sell, [insert] shares of Series C Convertible Preferred Stock of the Company (the “Shares”), the rights, privileges and preferences of which are set forth in the Certificate of Designation attached hereto as Exhibit A (the “Certificate of Designation”), at a per-share purchase price of One Dollar ($1.00) per share, for a total purchase price of [insert] Dollars ($[insert]) (the “Purchase Price”).  The Shares are convertible into shares of common stock of the Company on the terms and conditions set forth in the Certificate of Designation (the “Conversion Shares” and, together with the Shares, the “Securities.”)

 

2.           CLOSING AND DELIVERY:

a)           Upon the terms and subject to the conditions set forth herein, the consummation of the purchase and sale of the Shares (the “Closing”) shall be held simultaneous with the execution of this Agreement, or at such other time mutually agreed upon between the constituent Parties (the “Closing Date”).  The Closing shall take place at the offices of counsel for the Company set forth in Section 6 hereof, or by the exchange of documents and instruments by mail, courier, facsimile and wire transfer to the extent mutually acceptable to the Parties hereto.

c)           The Parties hereby acknowledge and agree that a material condition to the purchase and sale of the Shares is the continued existence, for so long as any of the Shares remain outstanding, of the Shareholder Voting Agreement by and between the Company, Old Line Partners, LLC, which is the largest shareholder of the Company, and Bagel Boy Equity Group II, LLC, a copy of which is attached hereto as Exhibit B (the “Voting Agreement”).

b)           At the Closing:

(i)           the Company and the Purchaser shall execute this Agreement, and

(ii)          the Purchaser shall deliver the Purchase Price to the Company.

c)           Within ten (10) business days of the Closing, the Company shall deliver to the Purchaser a certificate representing the Shares, issued in the name of Purchaser.

 

  

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3.           REPRESENTATIONS, WARRANTIES AND AGREEMENTS BY PURCHASER:  The Purchaser hereby represents, warrants and agrees as follows:

a) Purchase for Own Account.  Purchaser represents that he is acquiring the Shares solely for his own account and beneficial interest for investment and not for sale or with a view to distribution of the Securities or any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.

 

b) Ability to Bear Economic Risk.  Purchaser acknowledges that an investment in the Shares involves a high degree of risk, and represents that he is able, without materially impairing his financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss of his investment.

 

c) Access to Information.  The Purchaser acknowledges that the Purchaser has been furnished with such financial and other information concerning the Company, the directors and officers of the Company, and the business and proposed business of the Company as the Purchaser considers necessary in connection with the Purchaser’s investment in the Shares.  In addition, Purchaser has reviewed the Confidential Term Sheet, Industry Consolidation Opportunity, and 100 Day Plan attached hereto as Exhibit C, and the Company’s filings on Edgar with the Securities and Exchange Commission.  As a result, the Purchaser is thoroughly familiar with the proposed business, operations, properties and financial condition of the Company and has discussed with officers of the Company any questions the Purchaser may have had with respect thereto.  The Purchaser understands:

(i)           The risks involved in this investment, including the speculative nature of the investment;

(ii)           The financial hazards involved in this investment, including the risk of losing the Purchaser’s entire investment;

(iii)           The lack of liquidity and restrictions on transfers of the Securities; and

(iv)           The tax consequences of this investment.

The Purchaser has consulted with the Purchaser’s own legal, accounting, tax, investment and other advisers with respect to the tax treatment of an investment by the Purchaser in the Securities and the merits and risks of an investment in the Securities.

d) Securities Part of Private Placement.  The Purchaser has been advised that the Securities have not been registered under the Securities Act of 1933, as amended (the “Act”), or qualified under the securities law of any state, on the ground, among others, that no distribution or public offering of the Securities is to be effected and the Securities will be issued by the Company in connection with a transaction that does not involve any public offering within the meaning of section 4(a)(2) of the Act and/or Regulation D as promulgated by the Securities and Exchange Commission under the Act, and under any applicable state blue sky authority.  The Purchaser understands that the Company is relying in part on the Purchaser’s representations as set forth herein for purposes of claiming such exemptions and that the basis for such exemptions may not be present if, notwithstanding the Purchaser’s representations, the Purchaser has in mind merely acquiring the Securities for resale on the occurrence or nonoccurrence of some predetermined event.  The Purchaser has no such intention.

 

  

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e) Purchaser Not Affiliated with Company.  The Purchaser, either alone or with the Purchaser’s professional advisers (i) are unaffiliated with, have no equity interest in, and are not compensated by, the Company or any affiliate or selling agent of the Company, directly or indirectly; (ii) has such knowledge and experience in financial and business matters that the Purchaser is capable of evaluating the merits and risks of an investment in the Shares; and (iii) has the capacity to protect the Purchaser’s own interests in connection with the Purchaser’s proposed investment in the Shares.

f) Further Limitations on Disposition.  Purchaser further acknowledges that the Securities are restricted securities under Rule 144 of the Act, and, therefore, when the Company issues a certificate reflecting the ownership interest in the Securities, those certificates will contain a restrictive legend substantially similar to the following:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

Without in any way limiting the representations set forth above, Purchaser further agrees not to make any disposition of all or any portion of the Securities unless and until:

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

(ii)           There is an available exemption from the registration requirements of the Securities Act and the Purchaser shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration under the Act or any applicable state securities laws.

Notwithstanding the provisions of subparagraphs (i) and (ii) above, no such registration statement or opinion of counsel shall be necessary for a transfer by such Purchaser to a partner (or retired partner) of Purchaser, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors, if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were Purchaser hereunder as long as the consent of the Company is obtained.

 

  

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g) The Company was, in the past, a “shell” corporation as defined in Rule 12b-2 under the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 144(i) promulgated under the Securities Act of 1933 (the “Securities Act”), and therefore the Purchaser understands and acknowledges that he is restricted from selling the Securities in a public market transaction until the earlier of (i) the effectiveness of a registration statement filed by the Company for the resale of the Securities, or (ii) unless the Company has “cured” its shell status by meeting the following requirements:

 

 (1)          the Company is no longer a shell company as defined in Rule 144(i)(1);

 

(2)           the Company has filed all reports (other than Form 8-K reports) required under the Exchange Act for the preceding 12 months (or for a shorter period that the issuer was required to file such reports and materials); and

(3)           the Company has filed current “Form 10 information” with the Commission reflecting its status as an entity that is no longer an issuer described in Rule 144(i)(1), and at least one year has elapsed since the issuer filed that information with the Commission.  See Rule 144(i)(2).

The Company cured its shell status by filing “Form 10 information” with the Commission on February 17, 2012.  The Purchaser understands and acknowledges that the Company could become subject to Rule 144(i) in the future if it ceases to make all reports (other than Form 8-K) reports required under the Exchange Act or the Company once again becomes a shell company as referred to in Rule 144(i)(1).

h) Accredited Purchaser Status (Please check one).  Purchaser

 

_____ is

 

_____ is not

 

an “accredited investor” as such term is defined in Rule 501 under the Act because Purchaser either:

 

(i)           has a net worth of at least $1,000,000 (for purposes of this question, Purchaser may include spouse's net worth and may include the fair market value of home furnishings and automobiles, but must exclude from the calculation the value of Purchaser’s primary residence and the related amount of any indebtedness on primary residence up to the fair market value of the primary residence (any indebtedness that exceeds the fair market value of the primary residence must be deducted from net worth calculation)), or

(ii)           had an individual income of more than $200,000 in each of the two most recent calendar years, and reasonably expects to have an individual income in excess of $200,000 in the current calendar year; or along with Purchaser’s spouse had joint income in excess of $300,000 in each of the two most recent calendar years, and reasonably expects to have a joint income in excess of $300,000 in the current calendar year.

 

  

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For purposes of this Agreement, “individual income” means “adjusted gross income” as reported for Federal income tax purposes, exclusive of any income attributable to a spouse or to property owned by a spouse:  (i) the amount of any interest income received which is tax-exempt under Section 103 of the Internal Revenue Code of 1986, as amended, (the “Code”), (ii) the amount of losses claimed as a limited partner in a limited partnership (as reported on Schedule E of form 1040), (iii) any deduction claimed for depletion under Section 611 et seq. of the Code and (iv) any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income pursuant to the provisions of Sections 1202 of the Internal Revenue Code as it was in effect prior to enactment of the Tax Reform Act of 1986.

For purposes of this Agreement, “joint income” means, “adjusted gross income,” as reported for Federal income tax purposes, including any income attributable to a spouse or to property owned by a spouse, and increased by the following amounts:  (i) the amount of any interest income received which is tax-exempt under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), (ii) the amount of losses claimed as a limited partner in a limited partnership (as reported on Schedule E of Form 1040), (iii) any deduction claimed for depletion under Section 611 et seq. of the Code and (iv) any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income pursuant to the provisions of Section 1202 of the Internal Revenue Code as it was in effect prior to enactment of the Tax Reform Act of 1986.

i) Purchaser Qualifications.

(i)           If the Purchaser is an individual, the Purchaser is over 21 years of age; and if the Purchaser is an unincorporated association, all of its members are of such age.

(ii)           If the Purchaser is a corporation, partnership, employee benefit plan or IRA, the Purchaser was either:

(a)           not formed for the purpose of investing in the Shares, has or will have other substantial business or investments, and is (please check one):

	
  

	
_____

	
an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, provided that the investment decision is made by a plan fiduciary, as defined in section 3(21) of such Act, and the plan fiduciary is a bank, savings and loan association, insurance company or registered investment adviser; or

	
  

	
_____

	
an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 that has total assets in excess of $5,000,000; or

	
  

	
_____

	
each of its shareholders, partners, or beneficiaries is an Accredited Purchaser; or

	
  

	
_____

	
the plan is a self directed employee benefit plan and the investment decision is made solely by a person that is an Accredited Purchaser; or

	
  

	
_____

	
a corporation, a partnership, or a Massachusetts or similar business trust with total assets in excess of $5,000,000.

 

  

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(b)           formed for the specific purpose of investing in the Shares, and is an Accredited Purchaser because each of its shareholders or beneficiaries is an Accredited Purchaser.

(iii)           If the Purchaser is a Trust, the Purchaser was either:

(a)           not formed for the specific purpose of investing in the Shares, and is an Accredited Purchaser because (please check one):

	
  

	
_____

	
the trust has total assets in excess of $5,000,000 and the investment decision has been made by a “sophisticated person”; or

	
  

	
_____

	
the trustee making the investment decision on its behalf is a bank (as defined in Section 3(a)(2) of the Act), a saving and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, acting in its fiduciary capacity; or

	
  

	
_____

	
the undersigned trustee certifies that the trust is an Accredited Purchaser because the grantor(s) of the trust may revoke the trust at any time and regain title to the trust assets and has (have) retained sole investment control over the assets of the trust and the (each) grantor(s) is an Accredited Purchaser; or

	
  

	
_____

	
the undersigned trustee certifies that the trust is an Accredited Purchaser because all of the beneficial owners of the trust are Accredited Investors

(b)           formed for the specific purpose of investing in the Shares, and the undersigned trustee certifies that the trust is an Accredited Purchaser because the grantor(s) of the trust may revoke the trust at any time and regain title to the trust assets and has (have) retained sole investment control over the assets of the trust and the (each) grantor(s) is an Accredited Purchaser.

j) Purchaser Authorization.  The Purchaser, if not an individual, is empowered and duly authorized to enter into this Agreement under any governing document, partnership agreement, trust instrument, pension plan, charter, certificate of incorporation, bylaw provision or the like; this Agreement constitutes a valid and binding agreement of the Purchaser enforceable against the Purchaser in accordance with its terms; and the person signing this Agreement on behalf of the Purchaser is empowered and duly authorized to do so by the governing document or trust instrument, pension plan, charter, certificate of incorporation, bylaw provision, board of directors or stockholder resolution, or the like.

k) No Backup Withholding.  The Social Security Number or taxpayer identification shown in this Agreement is correct, and the Purchaser is not subject to backup withholding because (i) the Purchaser has not been notified that he is subject to backup withholding as a result of a failure to report all interest and dividends or (ii) the Internal Revenue Service has notified the Purchaser that he is no longer subject to backup withholding.

 

  

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4.           REPRESENTATIONS, WARRANTIES AND AGREEMENTS BY COMPANY:  The Company hereby represents, warrants and agrees as follows:

a) Authority of Company.  The Company has all requisite authority to execute and deliver this Agreement and to carry out and perform its obligations under the terms of this Agreement.

 

b) Authorization.  All actions on the part of the Company necessary for the authorization, execution, delivery and performance of this Agreement by the Company and the performance of the Company’s obligations hereunder has been taken or will be taken prior to the issuance of the Shares.  This Agreement, when executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws.  The issuance of the Shares will be validly issued, fully paid and nonassessable, will not violate any preemptive rights, rights of first refusal, or any other rights granted by the Company, and will be issued in compliance with all applicable federal and state securities laws, and will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed upon the Purchaser through no action of the Company; provided, however, that the Shares may be subject to restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise required by such laws at the time the transfer is proposed.

 

c) Governmental Consents.  All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority required on the part of the Company in connection with the valid execution and delivery of this Agreement, the offer, sale or issuance of the Shares, or the consummation of any other transaction contemplated hereby shall have been obtained, except for notices required or permitted to be filed with certain state and federal securities commissions, which notices will be filed on a timely basis.

d)  Restructuring.  The Company hereby agrees that it will use commercially reasonable best efforts to effectuate the following restructuring as soon as possible:

(i)           increasing the authorized common stock to 1 billion shares;

(ii)           approving a 1-for-30 reverse stock split of its common stock, to be effectuated at a later date at the discretion of the Board of Directors, and a simultaneous reduction of the authorized common stock to 100 million shares;

(iii)           approving the formation of five (5) member Board of Directors;

(iv)           obtain approval from the Depository Trust Company for book-entry delivery, settlement and depository services for the common stock of the Company; and

(v)           such other restructuring as set forth in the Restructuring Plan attached as Exhibit A to the Confidential Term Sheet which is attached as Exhibit B to this Agreement.

 e)Voting Agreement.  The Company shall not terminate, or cause to be terminated, the Voting Agreement for so long as any of the Shares remain outstanding.

 

  

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5.           INDEMNIFICATION:  The Purchaser hereby agrees to indemnify and defend the Company and its officers and directors and hold them harmless from and against any and all liability, damage, cost or expense incurred on account of or arising out of:

(a)           Any breach of or inaccuracy in the Purchaser’s representations, warranties or agreements herein;

(b)           Any disposition of any Securities contrary to any of the Purchaser’s representations, warranties or agreements herein;

(c)           Any action, suit or proceeding based on (i) a claim that any of said representations, warranties or agreements were inaccurate or misleading or otherwise cause for obtaining damages or redress from the Company or any director or officer of the Company under the Act, or (ii) any disposition of any Securities.

6.           MISCELLANEOUS:

 

a) Binding Agreement.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties.  Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

b) Governing Law; Venue.  This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among California residents, made and to be performed entirely within the State of California.  The Parties agree that any action brought to enforce the terms of this Agreement will be brought in the appropriate federal or state court having jurisdiction over Orange County, California, United States of America.

 

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

 

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

 

e) Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent as follows:

 

  

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	If to the Company:	Pharmagen, Inc. 

9337 Fraser Avenue

Silver Spring, MD 20910

Attn: Mackie Barch

Facsimile (___) 

	 
	 	 	 
	with a copy to: 	
Clyde Snow & Sessions, P.C.

201 S. Main Street, 13th Floor 

Salt Lake City, UT 84111

Attn: Brian A. Lebrecht

Facsimile (801) 521-6280

	 
	 	 	 
	If to Purchaser: 	[insert] 

[insert]

[insert]

Facsimile (___)

	 

 

or at such other address as the Company or Purchaser may designate by ten (10) days advance written notice to the other Party hereto.

 

f) Modification; Waiver.  No modification or waiver of any provision of this Agreement or consent to departure therefrom shall be effective unless in writing and approved by the Company and the Purchaser.

 

g) Entire Agreement; Successors.  This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the Parties with regard to the subjects hereof and no Party shall be liable or bound to the other Party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.  The representations, warranties and agreements contained in this Agreement shall be binding on the Purchaser’s successors, assigns, heirs and legal representatives and shall inure to the benefit of the respective successors and assigns of the Company and its directors and officers.

 

h) Expenses.  Each Party shall pay their own expenses in connection with this Agreement.  In addition, should either Party commence any action, suit or proceeding to enforce this Agreement or any term or provision hereof, then in addition to any other damages or awards that may be granted to the prevailing Party, the prevailing Party shall be entitled to have and recover from the other Party such prevailing Party’s reasonable attorneys’ fees and costs incurred in connection therewith.

i) Currency.  All currency is expressed in U.S. dollars.

[remainder of page intentionally left blank; signature page to follow]

 

  

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IN WITNESS WHEREOF, the Parties have executed this Securities Purchase Agreement as of the date first written above.

	
“Company”

	  	
“Purchaser”

	  	  	  
	
Pharmagen, Inc.,

	  	  
	
a Nevada corporation

	  	_______________________________________
	  	  	
[insert]

	  	  	  
	  	  	  
	__________________________________	  	  
	
By: Mackie Barch

	  	  
	
Its: Chief Executive Officer

	  	  

 

	
Email:__________________________________

	
SSN or FEIN:__________________________

	  	  
	
Mobile Phone:____________________________

	
Work Phone:___________________________

 

Full Address:_________________________________________

State of Residence:_____________________________________

For how long?                                                                                                                     

Do you maintain a residence in any other state?

 

In which state(s) do you:____________________________________________________

File state income tax returns:___________________________________________

Vote:_____________________________________________________________

Hold current driver’s license:___________________________________________

Maintain a house or apartment:_________________________________________

 

Affiliations with the Company: ________________________________________________

 

  

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Exhibit A

 

Certificate of Designation

 

 

 

 

 

 

 

 

 

 

  

12

  

 

Exhibit B

Shareholder Voting Agreement

 

 

 

 

 

 

 

 

 

 

 

 

  

13

  

 

Exhibit C

Confidential Term Sheet

Industry Consolidation Opportunity

100 Day Plan

 

 

 

 

 

 

 

 

 

 

  

14Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”), is dated as of December 12, 2013, by and between Petro
River Oil, Corp. a Delaware corporation (the “Company”), and Petrol Lakes Holding Limited (the “Subscriber”).

 

WHEREAS:

 

A.
The Company and the Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration
afforded by the provisions of Section 4(2), Section 4(6), Regulation D (“Regulation D”) and/or Regulation
S (“Regulation S”) as promulgated by the United States Securities and Exchange Commission (the “Commission”)
under the Securities Act of 1933, as amended (the “1933 Act”); and

 

B.
The parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the
Subscriber, as provided herein, and the Subscriber shall purchase (i) an aggregate of 81,250,000 shares (the “Common
Shares”) of the Company’s common stock, $0.00001 par value per share (the “Common Stock”),
at a per share price of $0.08 (the “Per Share Purchase Price”); and (ii) warrants (the “Warrants”)
in the forms attached hereto as Exhibit A, to purchase shares of the Company’s Common Stock (the “Warrant
Shares”) for an aggregate purchase price of $6,500,000 (the “Purchase Price”). The Common
Shares, Warrant and Warrant Shares are also referred to herein as the “Securities.” The issuance and
sale of the Common Shares and Warrant Shares is referred to herein as the “Offering”.

 

NOW,
THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Subscriber
hereby agree as follows:

 

1.
Closing. Subject to the satisfaction or waiver of the terms and conditions of this Agreement, on the “Closing
Date” Subscriber shall purchase and the Company shall sell to Subscriber the Common Shares and Warrants. The date
the Company receives the funds from the Subscriber shall be the Closing Date, and such receipt is referred to herein as the “Closing.”
There shall be only one Closing.

 

2.
Closing Conditions. The Closing hereunder is subject to the following conditions being met:

 

(a)
Subscriber’s representations and warranties being accurate and true in all material respects as of the Closing Date (unless
as of a specific date therein in which case they shall be accurate and true as of such date);

 

(b)
the performance in all material respects of all obligations, covenants and agreements of Subscriber and the Company that are required
to be performed at or prior to the Closing Date; and

 

(c)
Subscriber shall have delivered, or caused to be delivered, the Purchase Price to the Company, by wire transfer of immediately
available funds, to an account designated by the Company in writing to the Subscriber.

 

3.
Issuance of Common Shares and Warrants. On the Closing Date and against receipt of the Purchase Price payable pursuant
to Section 2(c) from Subscriber (which Subscriber agrees to pay subject to the Company’s satisfaction of the conditions
set forth in Section 2(a) through (b)), the Company shall deliver, or cause to be delivered, to Subscriber, within
10 business days after the closing a stock certificate of the Company certifying that Subscriber is the holder of record of the
Common Shares and an executed Warrant.

 

    	 

    	 

    

 

4.
Subscriber Representations and Warranties. Subscriber hereby represents and warrants to and agrees with the Company that:

 

(a)
Organization and Standing of the Subscriber. Subscriber is a corporation, duly incorporated or organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization and has the requisite corporate power
to own its assets and to carry on its business.

 

(b)
Authorization and Power. Subscriber has the requisite legal capacity, power and authority to enter into, and perform under,
this Agreement, and to purchase the Securities being sold to Subscriber hereunder and thereunder. The execution, delivery and
performance of this Agreement by Subscriber and the consummation by Subscriber of the transactions contemplated hereby and thereby
have been duly authorized by all requisite corporate, partnership or similar action on the part of Subscriber and no further consent
or authorization is required. This Agreement has been duly authorized, executed and delivered. This Agreement will be a valid
and binding obligation of Subscriber, enforceable against Subscriber in accordance with the terms thereof.

 

(c)
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by Subscriber of the transactions
contemplated hereby and thereby or relating hereto or thereto do not and will not (i) result in a violation of Subscriber’s
charter documents, bylaws or other organizational documents, if applicable, (ii) conflict with nor constitute a default (or an
event which with notice or lapse of time or both would become a default) under any agreement to which Subscriber is a party, nor
(iii) result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency
applicable to Subscriber or its properties (except for such conflicts, defaults and violations as would not, individually or in
the aggregate, have a material adverse effect on Subscriber). Subscriber is not required to obtain any consent, authorization
or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or
perform any of its obligations under this Agreement nor to purchase the Securities in accordance with the terms hereof, provided
that for purposes of the representation made in this sentence, Subscriber is assuming and relying upon the accuracy of the relevant
representations and agreements of the Company herein.

 

(d)
Information on Company. Subscriber has been furnished with or has had access to the EDGAR Website of the Commission to
the Company’s filings made with the Commission during the period from the date that is two years preceding the date hereof
through the business day preceding the Closing Date (hereinafter referred to collectively as the “Reports”).
Subscriber is not deemed to have any knowledge of any information not included in the Reports unless such information is delivered
in the manner described in the next sentence. In addition, Subscriber may have received in writing from the Company such other
information concerning its operations, financial condition and other matters as Subscriber has requested in writing, identified
thereon as OTHER WRITTEN INFORMATION (such other information is collectively, the “Other Written Information”),
and considered all factors Subscriber deems material in deciding on the advisability of investing in the Securities. Subscriber
was afforded (i) the opportunity to ask such questions as Subscriber deemed necessary of, and to receive answers from, representatives
of the Company concerning the merits and risks of acquiring the Securities; (ii) the right of access to information about the
Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
Subscriber to evaluate the Securities; and (iii) the opportunity to obtain such additional information that the Company possesses
or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to
acquiring the Securities.

 

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(e)
Information on Subscriber. Subscriber is, an “accredited investor,” as such term is defined in
Regulation D promulgated by the Commission under the 1933 Act, is experienced in investments and business matters, has made investments
of a speculative nature and has purchased securities of United States publicly-owned companies in private placements in the past
and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable Subscriber
to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment
decision with respect to the proposed purchase, which represents a speculative investment. Subscriber has the authority and is
duly and legally qualified to purchase and own the Securities. Subscriber is able to bear the risk of such investment for an indefinite
period and to afford a complete loss thereof. Subscriber has provided the information in the Accredited Investor Questionnaire
attached hereto as Exhibit B (the “Investor Questionnaire”). The information set forth
on the signature pages hereto and the Investor Questionnaire regarding Subscriber is true and complete in all respects. Except
as disclosed in the Investor Questionnaire, Subscriber has had no position, office or other material relationship within the past
three years with the Company or Persons (as defined below) known to Subscriber to be affiliates of the Company, and is not a member
of the Financial Industry Regulatory Authority or an “associated person” (as such term is defined under
the FINRA Membership and Registration Rules Section 1011). Subscriber is not a U.S. Person (as used herein a U.S. Person means
any one of the following: (a) any U.S. Citizen; (b) any natural person resident in the United States of America; (c) any partnership
or corporation organized or incorporated under the laws of the United States of America; (d) any estate of which any executor
or administrator is a U.S. person; (e) any trust of which any trustee is a U.S. person; (f) any agency or branch of a foreign
entity located in the United States of America; (g) any non-discretionary account or similar account (other than an estate or
trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person; (h) any discretionary account or similar
account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident
in the United States of America; and (i) any partnership or corporation if: (1) organized or incorporated under the laws of any
foreign jurisdiction; and (2) formed by a U.S. Person principally for the purpose of investing in securities not registered under
the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) under
the Securities Act) who are not natural persons, estates or trusts.). At the time of the origination of contact concerning this
Agreement and the date of the execution and delivery of this Agreement, Subscriber was outside of the United States.

 

(f)
Resale. Subscriber will not, during the period commencing on the date of issuance of the Shares and ending on the first
anniversary of such date, or such shorter period as may be permitted by Regulation S or other applicable securities law (“Restricted
Period”), offer, sell, pledge or otherwise transfer the Shares in the United States, or to a U.S. Person for the
account or benefit of a U.S. Person, or otherwise in a manner that is not in compliance with Regulation S. All subsequent offers
and sales of the Securities shall be made in compliance with Regulation S and/or pursuant to registration of the Securities under
the 1933 Act or pursuant to an exemption from registration under the 1933 Act. Unless registered for sale under the 1933 Act,
the Securities will not be resold to U.S. Persons or within the United States until after the end of a one year restricted period
commencing on the date of closing of the purchase of the Securities and otherwise in compliance with Rule 904 of Regulation S.

 

(g)
No US sales. Subscriber has not in the United States, engaged in, and prior to the expiration of the Restricted Period
will not engage in, any short selling of or any hedging transaction with respect to the Shares, including without limitation,
any put, call or other option transaction, option writing or equity swap. Neither Subscriber nor or any person acting on its behalf
has engaged, nor will engage, in any directed selling efforts to U.S. Citizens with respect to the Shares and Subscriber and any
person acting on its behalf have complied and will comply with the “offering restrictions” requirements
of Regulation S under the Securities Act. The transactions contemplated by this Agreement have not been pre-arranged with a buyer
located in the United States or with a U.S. Person.

 

(h)
Lack of Liquidity. The Subscriber acknowledges that the purchase of the Securities involves a high degree of risk and further
acknowledges that it can bear the economic risk of the purchase of the Securities, including the total loss of its investment.
The Subscriber acknowledges and understands that the Securities may not be sold to a U.S. Person (as hereinafter defined) or into
the United States for a period of one (1) year from the date of purchase and that the Subscriber has no present need for liquidity
in connection with its purchase of the Securities. The Subscriber shall comply in all respects with US federal and state securities
laws, particularly with respect to any resale of the Securities in any transaction subject to United States jurisdiction.

 

    	3

    	 

    

 

(i)
Purchase of Securities. On the Closing Date, Subscriber will purchase the Securities for Subscriber’s own account
for investment only and not with a view toward, or for resale in connection with, the public sale or any distribution thereof.

 

(j)
Compliance with Securities Act; Reliance on Exemptions. Subscriber understands and agrees that the Securities have not
been registered under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that
does not require registration under the 1933 Act, and that such Securities must be held indefinitely unless a subsequent disposition
is registered under the 1933 Act or any applicable state securities laws or is exempt from such registration. Subscriber understands
and agrees that the Securities are being offered and sold to Subscriber in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and regulations and that the Company is relying in part upon the
truth and accuracy of, and Subscriber’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of Subscriber set forth herein in order to determine the availability of such exemptions and the eligibility of
Subscriber to acquire the Securities.

 

(k)
Communication of Offer. Subscriber is not purchasing the Securities as a result of any “general solicitation”
or “general advertising,” as such terms are defined in Regulation D, which includes, but is not limited
to, any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or
similar media or on the internet or broadcast over television, radio or the internet or presented at any seminar or any other
general solicitation or general advertisement.

 

(l)
Restricted Securities. Subscriber understands that the Securities have not been registered under the 1933 Act and Subscriber
will not sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any of the Securities unless pursuant to an effective
registration statement under the 1933 Act, or unless an exemption from registration is available. Notwithstanding anything to
the contrary contained in this Agreement, Subscriber may transfer (without restriction and without the need for an opinion of
counsel) the Securities to its Affiliates (as defined below) provided that each such Affiliate is an “accredited investor”
under Regulation D and such Affiliate agrees to be bound by the terms and conditions of this Agreement. For the purposes of this
Agreement, an “Affiliate” of any Person means any other Person directly or indirectly controlling, controlled
by or under direct or indirect common control with such Person. Affiliate includes each Subsidiary of the Company. For the purposes
of this Agreement, a “Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision
thereof) or other entity of any kind. For purposes of this definition, “control” means the power to
direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities,
by contract or otherwise. The Subscriber agrees to the imprinting, so long as is required by this Section 7(a), of a legend on
any of the Securities in the following form:

 

THIS
SECURITY HAS NOT 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 MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	4

    	 

    

  

(m)
No Governmental Review. Subscriber understands that no United States federal or state agency or any other governmental
or state agency has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in
the Securities nor have such authorities passed upon or endorsed the merits of the Offering.

 

(n)
Survival. The foregoing representations and warranties shall survive the Closing Date.

 

5.
Company Representations and Warranties. The Company represents and warrants to and agrees with Subscriber that:

 

(a)
Due Incorporation. The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the jurisdiction of its incorporation and has the requisite corporate power to own its properties and to carry on its business
as presently conducted.

 

(b)
Authority; Enforceability. This Agreement has been duly authorized, executed and delivered by the Company and is valid
and binding agreements of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights
generally and to general principles of equity.

 

(c)
Consents. No consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction
over the Company, any Subsidiary, or any of its Affiliates, or the Company’s stockholders is required for the execution
by the Company of this Agreement and performance by the Company of its obligations under this Agreement, including, without limitation,
the issuance and sale of the Securities.

 

(d)
Board Representation. The Subscriber shall have the right to appoint one director to the Company’s Board of Directors
(the “Subscriber Director”). The Company shall ensure that the Subscriber Director shall remain on the
Company’s Board of Director at least through the first annual meeting of the Company after the one year anniversary of the
date of this Agreement.

 

6.
Regulation D/ Regulation S Offering. The offer and issuance of the Securities to the Subscriber is being made pursuant
to the exemption from the registration provisions of the 1933 Act afforded by Section 4(2) or Section 4(6) of the 1933 Act and/or
Rule 506 of Regulation D promulgated thereunder.

 

7.
Miscellaneous.

 

(a)
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (A) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (B) on the third (3rd) business day following the date
of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be: (1) if to the Company, to: 1980 Post Oak Boulevard Suite 2020,
Houston, Texas 77056, Attn: Scot Cohen, CEO, facsimile: (646)449–0293, with an additional copy by fax only to: Grushko &
Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575, and (2) if to the Subscriber, to:
Unit D, 12/F, Seabright Plaza, 9-23 Shell Street, North Point, Hong Kong.

 

    	5

    	 

    

  

(b)
Entire Agreement. This Agreement represents the entire agreement between the parties hereto with respect to the subject
matter hereof and may be amended only by a writing executed by both parties. The exhibit attached hereto or referred to herein
are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Neither the Company nor the Subscriber
has relied on any representations not contained or referred to in this Agreement and the documents delivered herewith. This Agreement
shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.

 

(c)
Waivers. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed
to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right.

 

(d)
Counterparts/Execution. This Agreement may be executed in any number of counterparts and by the different signatories hereto
on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute
but one and the same instrument. This Agreement may be executed by facsimile signature and delivered by electronic transmission.

 

(e)
Law Governing this Agreement; Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought against the Company
concerning the transactions contemplated by this Agreement shall be brought in the state courts or federal courts located in New
York County, New York. Any action brought against the Subscriber concerning the transactions contemplated by this Agreement shall
be brought in the state courts or federal courts located in New York County, New York or Hong Kong. The parties to this Agreement
hereby irrevocably waive any objection to jurisdiction and venue of any action instituted in compliance with this Section and
shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The parties executing
this Agreement agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive trial by jury. The
prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs.

 

(f)
Specific Enforcement. The Company and the Subscriber acknowledge and agree that irreparable damage would occur in the event
that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of
the provisions of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

 

    	6

    	 

    

  

(g)
Calendar Days. All references to “days” shall mean calendar days unless otherwise stated. The
terms “business days” and “trading days” shall mean days that the New York
Stock Exchange is open for trading for three or more hours. Time periods shall be determined as if the relevant action, calculation
or time period were occurring in New York City. Any deadline that falls on a non-business day shall be automatically extended
to the next business day and interest, if any, shall be calculated and payable through such extended period.

 

(h)
Captions: Certain Definitions. The captions of the various sections and paragraphs of this Agreement have been inserted
only for the purposes of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to
modify, explain, enlarge or restrict any of the provisions of this Agreement.

 

(i)
Severability. In the event that any term or provision of this Agreement shall be finally determined to be superseded, invalid,
illegal or otherwise unenforceable pursuant to applicable law by an authority having jurisdiction and venue, that determination
shall not impair or otherwise affect the validity, legality or enforceability: (i) by or before that authority of the remaining
terms and provisions of this Agreement, which shall be enforced as if the unenforceable term or provision were deleted, or (ii)
by or before any other authority of any of the terms and provisions of this Agreement.

 

[Signature
Pages Follow]

 

    	7

    	 

    

  

SIGNATURE
PAGE TO SECURITIES PURCHASE AGREEMENT

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	“COMPANY”
    	 	“SUBSCRIBER”
	PETRO
    RIVER OIL, CORP. 	 	PETROL
    LAKES HOLDING LIMITED.
	 	 	 
	By:	/s/
    Scot Cohen	 	By:	/s/
    David Dai
	Name:	Scot
    Cohen	 	Name:	David Dai
	Title:	Executive
    Chairman	 	Title:	Managing
    Director

 

    	8

    	 

    

  

Exhibit
A

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO
RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

  

	 	Right
    to Purchase 40,625,000 shares of Common Stock of Petro River Oil, Corp. (subject to adjustment as provided herein)

  

FORM
OF COMMON STOCK PURCHASE WARRANT

 

	No.
    2013-A-001	Issue
    Date: December 12, 2013

  

PETRO
RIVER OIL, CORP., a corporation organized under the laws of the State of Delaware, hereby certifies that, for value
received, PETROL LAKES HOLDING LIMITED (the “Holder”), address at Unit D, 12/F, Seabright Plaza,
9-23 Shell Street, North Point, Hong Kong Fax: the Company at any time after the Issue Date until 5:00 p.m., Eastern Time on
December 12, 2015 (the “Expiration Date”), up to 40,625,000 fully paid and non-assessable shares of
Common Stock at a per share purchase price of $0.1356. The aforedescribed purchase price per share, as adjusted from
time to time as herein provided, is referred to herein as the “Purchase Price”. The number and character
of such shares of Common Stock and the Purchase Price are subject to adjustment as provided herein. The Company may reduce
the Purchase Price for some or all of the Warrants, temporarily or permanently. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the
“SPA”), dated as of December 12, 2013, entered into by the Company and the Holder.

 

As
used herein the following terms, unless the context otherwise requires, have the following respective meanings:

 

(a)
The term “Company” shall mean Petro River Oil, Corp., a Delaware corporation, and any corporation which shall
succeed or assume the obligations of Petro River Oil, Corp. hereunder.

 

(b)
The term “Common Stock” includes (i) the Company’s Common Stock, $0.00001 par value per share, as authorized
on the date of the SPA, and (ii) any other securities into which or for which any of the securities described in (i) may be converted
or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

 

    	9

    	 

    

  

(c)
The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company
or any other person (corporate or otherwise) which the holder of the Warrant at any time shall be entitled to receive, or shall
have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable
or shall have been issued in exchange for or in replacement of Common Stock or Other Securities pursuant to Section 4 or
otherwise.

 

(d)
The term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this Warrant.

 

1.
Exercise of Warrant.

 

1.1.
Number of Shares Issuable upon Exercise. From and after the Issue Date through and including the Expiration Date, the Holder
hereof shall be entitled to receive, upon exercise of this Warrant in whole or in part, shares of Common Stock of the Company,
subject to adjustment pursuant to Section 3 below.

 

1.2.
Partial Exercise. This Warrant may be exercised in part (but not for a fractional share) in the manner and at the place
provided in Section 1.3, except that the amount payable by the Holder on such partial exercise shall be the amount obtained
by multiplying (a) the number of whole shares of Common Stock designated by the Holder in the Subscription Form by (b) the Purchase
Price then in effect. On any such partial exercise, provided the Holder has surrendered the original Warrant, the Company, at
its expense, will issue and deliver to the Holder hereof a new Warrant of like tenor, in the name of the Holder hereof, the whole
number of shares of Common Stock for which such Warrant may still be exercised. The original Warrant is not required to be surrendered
to the Company until it has been fully exercised.

 

1.3.
Exercise. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time before
the Expiration Date by delivery to the Company (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) of a duly executed copy of
the form of subscription attached as Exhibit A hereto (the “Subscription Form”) annexed hereto and the
Purchase Price by wire transfer or cashier’s check drawn on a United States bank. The Company agrees that the shares of
Common Stock purchased upon exercise of this Warrant shall be deemed to be issued to the Holder hereof as the record owner of
such shares as of the close of business on the date on which delivery of a Subscription Form and Purchase Price shall have occurred.
As soon as practicable after the exercise of this Warrant in full or in part the Company will cause to be issued in the name of
and delivered to the Holder hereof a certificate for the number of duly and validly issued, fully paid and non-assessable shares
of Common Stock (or Other Securities) to which Holder shall be entitled on such exercise.

 

2.
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 entity, other than a merger or consolidation that does not result in a Change of Control of
the Company, (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 entity) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities, cash or property, (D) the Company consummates a stock
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, or spin-off)
with one or more persons or entities whereby such other persons or entities acquire more than the 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by such other persons or entities making or party to, or associated
or affiliated with the other persons or entities making or party to, such stock purchase agreement or other business combination),
(E) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934
Act), is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly,
of 50% of the aggregate Common Stock of the Company, or (F) 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 (in any such case, a “Fundamental Transaction”), then this Warrant shall be cancelled and
the Holder shall have no further rights hereunder.

 

    	10

    	 

    

  

3.
Extraordinary Events Regarding Common Stock. In the event that the Company shall (a) subdivide its outstanding shares of
Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of shares of Common Stock, then,
in each such event, the Purchase Price shall, simultaneously with the happening of such event, be adjusted by multiplying the
then Purchase Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately
prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such
event, and the product so obtained shall thereafter be the Purchase Price then in effect. The Purchase Price, as so adjusted,
shall be readjusted in the same manner upon the happening of any successive event or events described herein in this Section
4. The number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof, be entitled
to receive shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but
for the provisions of this Section 4) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase
Price that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Purchase
Price in effect on the date of such exercise.

 

4.
Warrant Agent. The Company may, by written notice to the Holder of the Warrant, appoint an agent (a “Warrant Agent”)
for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant, and thereafter any such issuance,
exchange or replacement, as the case may be, shall be made at such office by such Warrant Agent.

 

5.
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery or facsimile, addressed as set forth below or to such other address as such party shall have
specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall
be deemed effective (a) upon hand delivery or facsimile at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of
such mailing, whichever shall first occur. The addresses for such communications shall be: if to the Company, to: Petro River
Oil, Corp.1980 Post Oak Boulevard Suite 2020, Houston, Texas 77056, Attn: Scot Cohen, CEO, facsimile: (646)449–0293, with
an additional copy by fax only to: Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile:
(212) 697-3575, and (ii) if to the Holder, to the address and facsimile number listed on the first paragraph of this Warrant.

 

    	11

    	 

    

 

6.
Law Governing This Warrant. This Warrant shall be governed by and construed in accordance with the laws of the State of
New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the
transactions contemplated by this Warrant shall be brought only in the state courts of New York or in the federal courts located
in the state and county of New York. The parties to this Warrant hereby irrevocably waive any objection to jurisdiction and venue
of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum
non conveniens. The Company and Holder waive trial by jury. The prevailing party shall be entitled to recover from
the other party its reasonable attorney’s fees and costs. In the event that any provision of this Warrant or any other agreement
delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute
or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision of any agreement.

 

7.
Non-Transferable. This Warrant is not transferable without the consent of the Company which may be withheld for any reason
in the Company’s absolute discretion.

 

[-Signature
Page Follows-] 

 

    	12

    	 

    

  

IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

 

	 	PETRO
    RIVER OIL, CORP. 
	 	 	 
	 	By:	 
	 	Name:	Scot Cohen
	 	Title:	Executive Chairman

  

    	13

    	 

    

  

Exhibit
A

 

 FORM OF SUBSCRIPTION

(to
be signed only on exercise of Warrant)

 

TO:
PETRO RIVER OIL, CORP.

 

Petrol
Lakes Holding Limited (“Subscriber”), pursuant to the provisions set forth in Warrant (No. 1), hereby irrevocably
elects to purchase (check applicable box):

 

________
shares of the Common Stock covered by such Warrant.

 

Subscriber
herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant, which is
$___________.

 

Subscriber
requests that the certificates for such shares be delivered to __________________________________________ whose address
is___________________________ __________________ __________________.

 

Subscriber
warrants and represents that as of the date hereof the Subscriber is, an “accredited investor,” as such
term is defined in Regulation D promulgated by the Commission under the 1933 Act and that all the representations and warranties
of the Subscriber in the SPA and true and accurate as of the date hereof.

 

The
Subscriber represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the
within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities
Act”), or pursuant to an exemption from registration under the Securities Act.

 

	Dated:	 	 	PETROL LAKES HOLDING LIMITED
	 	 	 	 
	 	 	 	
	 	 	 	Name:	 
	 	 	 	Title:	 

  

    	14

    	 

    

  

EXHIBIT
B

 

Form
of Investor Questionnaire

 

To:
PETRO RIVER OIL, CORP. (the “Company”)

 

The
information in this Accredited Investor Questionnaire (this “Questionnaire”) is being furnished to allow
the Company to confirm that the undersigned is an “accredited investor,” as defined in Rule 501(a) of
the Securities Act of 1933, as amended (the “Securities Act”).

 

By
signing the Securities Purchase Agreement to which this Questionnaire is attached, you will be authorizing the Company to provide
a completed copy of this Questionnaire to such parties as the Company deems appropriate in order to ensure that the offer and
sale of the Company’s securities will not result in a violation of the Securities Act or the securities laws of any state
and that you otherwise satisfy the suitability standards applicable to purchasers of the Securities. All potential investors must
answer all questions and complete this Questionnaire in full.

 

I.
The undersigned hereby represents that he, she or it is (please initial each category applicable to you in the space provided):

 

	_____	(1)	A
    bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined
    in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;
	 	 	 
	_____	(2)	A
    broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;
	 	 	 
	_____	(3)	An
    insurance company as defined in Section 2(13) of the Securities Act;
	 	 	 
	_____	(4)	An
    investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section
    2(a)(48) of that Act;
	 	 	 
	_____	(5)	A
    Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small
    Business Investment Act of 1958;
	 	 	 
	_____	(6)	A
    plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its
    political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;
	 	 	 
	_____	(7)	An
    employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision
    is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association,
    insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000
    or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
	 	 	 
	_____	(8)	A
    private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;
	 	 	 
	_____	(9)	An
    organization described in Section 501(c)(3) of the Internal Revenue Code, a Massachusetts or similar business trust, or a
    partnership, not formed for the specific purpose of acquiring the Securities, with total assets in excess of $5,000,000;
	 	 	 
	_____	(10)	A
    trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase
    is directed by a sophisticated person who has such knowledge and experience in financial and business matters that such person
    is capable of evaluating the merits and risks of investing in the Company;

  

    	15

    	 

    

 

	_____	(11)	A
    natural person whose individual net worth (total assets minus total liabilities), or joint net worth with that person’s
    spouse, at the time of his purchase exceeds $1,000,000, excluding the value of the primary residence of such person;
	 	 	 
	_____	(12)	A
    natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with
    that person’s spouse in excess of $300,000, in each of those years, and has a reasonable expectation of reaching the
    same income level in the current year;
	 	 	 
	_____	(13)	An
    executive officer or director of the Company;
	 	 	 
	_____	(14)	An
    entity in which all of the equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this
    investor category only, list below the equity owners of the undersigned, and the investor category which each such equity
    owner satisfies.

  

II.
Exceptions to the representations and warranties made in Section 4(e) of the Securities Purchase Agreement (if no exceptions,
write “none” – if left blank, the response will be deemed to be “none”):

  

	 
	 

 

	PETROL
    LAKES HOLDING LIMITED	 
	 	 	 
	By:		 
	Name:	 	 
	Title:	 	 

 

    	16

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