Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.3    
    

INFRASOURCE SERVICES, INC.

2004 EMPLOYEE STOCK PURCHASE PLAN  

Section 1. General Purpose of Plan; Definitions.  

        The name of this plan is the InfraSource Services, Inc. 2004 Employee Stock Purchase Plan (the "Plan"). The Plan was adopted by the Board (defined below)
on April 29, 2004, subject to the approval of the stockholders of the Company (defined below), which approval was obtained on April 29, 2004. The purpose of the Plan is to provide
Employees (defined below) of the Company (defined below), its Parent (defined below) and any Designated Subsidiary (defined below) with the opportunity to purchase Common Stock (defined below) through
accumulated payroll deductions. It is the intention of the Company that the Plan qualify as an "employee stock purchase plan" within the meaning of Section 423 of the Code (defined below), and
that the provisions of the Plan be construed in a manner consistent with the requirements of such Section of the Code. 

        For
purposes of the Plan, the following terms shall be defined as set forth below: 

        (a)   "Administrator" means the Board, or if and to the extent the Board does not administer the Plan, the Committee in
accordance with Section 11 below. 

        (b)   "Board" shall mean the Board of Directors of the Company. 

        (c)   "Change in Capitalization" shall mean any increase, reduction, change or exchange of Shares for a different number of
shares and/or kind of shares or other securities of the Company by reason of a reclassification, recapitalization, merger, consolidation, reorganization, issuance of warrants or rights, stock
dividend, stock split or reverse stock split, combination or exchange of Shares, repurchase of Shares, change in corporate structure or otherwise. 

        (d)   "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 

        (e)   "Committee" shall mean a committee appointed by the Board to administer the Plan and to perform the functions set forth
herein. 

        (f)    "Common Stock" shall mean the common stock, $0.001 par value, of the Company. 

        (g)   "Company" shall mean InfraSource Services, Inc., a Delaware corporation. 

        (h)   "Compensation" shall mean the fixed salary or wage paid by the Company to an Employee as reported by the Company to the
United States government for Federal income tax purposes, including an Employee's portion of salary deferral contributions pursuant to Section 401(k) of the Code and any amount excludable
pursuant to Section 125 of the Code, and any payments for overtime, shift premium, incentive compensation, bonuses, or commissions, but excluding any payments for severance pay, expense
reimbursements or any credit or benefit under any employee plan maintained by the Company. 

        (i)    "Continuous Status as an Employee" shall mean the absence of any interruption or termination of service as an Employee.
Continuous Status as an Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company, its Parent or a Designated Subsidiary, as appropriate,
provided that (x) such leave is for a period of not more than 90 days or (y) reemployment with the Company, its Parent or a Designated Subsidiary, as appropriate, is guaranteed by
contract or statute upon expiration of such leave. 

        (j)    "Corporate Transaction" shall mean a sale of all or substantially all of the Company's assets, or a merger, consolidation
or other capital reorganization of the Company with or into another corporation, or any other transaction or series of related transactions in which the 

1

 

Company's
stockholders immediately prior thereto own less than 50% of the voting stock of the Company (or its successor or parent) immediately thereafter. 

        (k)   "Designated Subsidiary" shall mean a Subsidiary that has been designated by the Administrator from time to time in its
sole discretion as eligible to participate in the Plan. Schedule A attached hereto sets forth the Designated Subsidiaries as of the Effective Date. 

        (l)    "Employee" shall mean any person who is customarily employed for at least twenty (20) hours per week by the
Company, its Parent or a Designated Subsidiary and is not a member of a collective bargaining unit that has refused to participate in the Plan. 

        (m)  "Enrollment Date" shall mean the first Trading Day of each Offering Period. 

        (n)   "Fair Market Value" as of a particular date shall mean the fair market value of the Shares as determined by the
Administrator in its sole discretion; provided, however, that (i) if the Shares are admitted to trading on a national securities exchange, fair
market value of the Shares on any date shall be the closing sale price reported for the Shares on such exchange on such date or, if no sale was reported on such date, on the last date preceding such
date on which a sale was reported, (ii) if the Shares are admitted to quotation on the National Association of Securities Dealers Automated Quotation ("Nasdaq") System or other comparable
quotation system and have been designated as a National Market System ("NMS") security, fair market value of the Shares on any date shall be the closing sale price reported for the Shares on such
system on such date or, if no sale was reported on such date, on the last date preceding such date on which a sale was reported, or (iii) if the Shares are admitted to quotation on the Nasdaq
System but have not been designated as an NMS security, fair market value of the Shares on any date shall be the average of the highest bid and lowest asked prices of the Shares on such system on such
date or, if no bid and ask prices were reported on such date, on the last date preceding such date on which both bid and ask prices were reported. Notwithstanding anything to the contrary contained
herein, for purposes of the Enrollment Date of the first Offering Period under the Plan, fair market value of the Shares shall be the initial price to the public as set forth in the final prospectus
included within the registration statement in Form S-1 filed with the Securities and Exchange Commission for the initial underwritten public offering of the Stock (the "Registration
Statement"). 

        (o)   "Offering Period" shall mean a period as described in Section 3 hereof. 

        (p)   "Parent" shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company
if, at the time of the granting of an option, each of the corporations other than the Company owns Shares possessing fifty percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain, whether or not such corporation now exists or hereafter acquires the Company. 

        (q)   "Participant" shall mean an Employee who elects to participate in the Plan pursuant to Section 4 hereof. 

        (r)   "Purchase Date" shall mean the last Trading Day of each Offering Period. 

        (s)   "Purchase Price" shall mean an amount equal to the lesser of (i) 85% of the Fair Market Value of a Share on the
Enrollment Date or (ii) 85% of the Fair Market Value of Share on the Purchase Date. 

        (t)    "Share" shall mean a share of Common Stock. 

        (u)   "Subsidiary" shall mean any corporation (other than the Company) in an unbroken chain of corporations, beginning with the
Company, if, at the time of the granting of an option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations 

2

 

in
such chain, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 

        (v)   "Trading Day" shall mean a day on which national stock exchanges and the Nasdaq System are open for trading. 

Section 2. Eligibility.  

        (a)   Subject
to the limitations set forth in Section 2(b) hereof, any person who has been continuously employed as an Employee since the date that is six months prior
to an Enrollment Date shall be eligible to participate in the Plan in accordance with Section 4 hereof and shall be granted an option for the Offering Period commencing on such Enrollment Date. 

        (b)   Notwithstanding
any provision of the Plan to the contrary, no Employee shall be granted an option under the Plan (i) if such Employee (or any other person whose
stock would be attributed to such Employee pursuant to Section 424(d) of the Code), immediately after the option is granted, would own stock and/or hold outstanding options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company, its Parent or of any
Subsidiary, or (ii) if such grant would permit such Employee's right to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company, its
Parent and of any Subsidiary to accrue at a rate that exceeds twenty-five thousand dollars ($25,000) of Fair Market Value of such stock (determined at the time such option is granted) for
any calendar year in which such option would be outstanding (applied in accordance with Section 423(b)(8) of the Code and the Treasury Regulations thereunder). Any amounts received from an
Employee that cannot be used to purchase Shares as a result of this limitation shall be returned as soon as reasonably practicable to the Employee without interest. 

Section 3. Offering Periods.  

        The Plan shall be implemented by a series of consecutive six-month Offering Periods, with a new Offering Period commencing on the first Trading Day on
or after May 15 (beginning in the year 2005) and November 15 (beginning in the year 2004) of each year, or at such other time or times as may be determined by the Administrator, and
ending on the last Trading Day on or before the following November 14 and May 14, respectively, or at such other time or times as may be determined by the Administrator;  provided, however,
that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities
and Exchange Commission declares the Company's Registration Statement effective and ending on the last Trading Day on or before November 14, 2004. The Plan shall continue until terminated in
accordance with Section 17 hereof. Subject to Section 17 hereof, the Administrator shall have the power to change the duration and/or the frequency of Offering Periods with respect to
future offerings and shall use its best efforts to notify Employees of any such change at least fifteen (15) days prior to the scheduled beginning of the first Offering Period to be affected.
In no event shall any option granted hereunder be exercisable more than twenty-seven (27) months from its date of grant. 

Section 4. Enrollment; Participation.  

        (a)   First
Offering Period. 

        (i)    Each
Eligible Employee who is employed by the Company or a Designated Subsidiary on the calendar day immediately preceding the Effective Date (as defined in
Section 21) shall automatically be enrolled and become a Participant in the Plan effective as of the Enrollment Date with respect to the first Offering Period to the extent of up to fifteen
percent (15%) of his or her Compensation for each payday occurring during the first Offering Period. 

3

 

        (ii)   On
the Enrollment Date of the first Offering Period the Company shall commence an offering by granting each Participant an option to purchase shares of Common Stock.
The number of shares to be purchased on the Purchase Date of such Offering Period shall be determined by dividing the sum of each Participant's aggregate payroll deductions accumulated prior to such
Purchase Date and timely lump sum cash payments retained in the Participant's Account as of such Purchase Date by the applicable Purchase Price; provided that in no event shall a Participant be
permitted to purchase during each Offering Period more than 2,000 Shares (subject to any adjustment pursuant to Section 16 hereof), provided,
further, that such purchase shall be subject to the limitations set forth in Sections 2(b) and 10 hereof. Exercise of the option shall occur as provided in Section 6
hereof, unless the Participant has withdrawn pursuant to Section 8 hereof. The option with respect to an Offering Period shall expire on the Purchase Date with respect to such Offering Period
or the withdrawal date if earlier. 

        (iii)  Following
the Effective Date, each such Participant shall, no later than a date designated by the Administrator for such purpose (the "Election Date"), elect to make
contributions for the first Offering Period to his or her account up to the amount set forth in Section 5 by payroll deductions. To make contributions by payroll deductions, such Participant
must complete the form of subscription agreement provided by the Company prior to the Election Date. Payroll deductions shall commence on the first payday following the Election Date, and shall end on
the last payday prior to the Purchase Date of the Offering Period to which the subscription agreement is applicable, unless sooner terminated by the Participant's withdrawal from the Plan or
termination of the Participant's Continuous Status as an Employee as provided in Section 8 hereof. Unless a Participant, by giving written notice (or such other notice as may from time to time
be prescribed by the Administrator), elects not to participate with respect to any subsequent Offering Period, the Participant shall be deemed to have accepted each new offer and to have authorized
payroll deductions in respect thereof during each subsequent Offering Period. 

        (iv)  With
respect to any payday(s) that occur following the Enrollment Date of the first Offering Period and on or prior to the Election Date, each Participant shall be
permitted to make a one-time lump sum cash payment equal to the amount of such Participant's Compensation that would have been deducted from such Participant's Compensation had the
subscription agreement in subsection (iii) above been in place during any such payday(s). Participants wishing to make the lump sum cash payment shall do so by making such payment to the
Company not later than ten (10) calendar days before the Purchase Date of such Offering Period. 

        (v)   If
a Participant fails to submit a complete form of subscription agreement by the Election Date, such Participant shall be deemed to have withdrawn from the Offering
Period without the need to provide written notice to the Company. 

        (b)   Subsequent
Offering Periods. 

        (i)    On
each subsequent Enrollment Date the Company shall commence an offering by granting each eligible Employee who has elected to participate in such Offering Period
pursuant to Section 4(a)(iii) or 4(b)(ii) hereof an option to purchase on the Purchase Date of such Offering Period up to a number of Shares determined by dividing each Employee's
payroll deductions accumulated prior to such Purchase Date and retained in the Participant's account as of such Purchase Date by the applicable Purchase Price; provided that in no event shall a
Participant be permitted to purchase during each Offering Period more than 2,000 Shares (subject to any adjustment pursuant to Section 16 hereof), provided,
further, that such purchase shall be subject to the limitations set forth in Sections 2(b) and 10 hereof. Exercise 

4

 

of
the option shall occur as provided in Section 6 hereof, unless the Participant has withdrawn pursuant to Section 8 hereof. The option with respect to an Offering Period shall expire
on the Purchase Date with respect to such Offering Period or the withdrawal date if earlier. 

        (ii)   An
Employee may (subject to the limitations set forth in Section 2(b) hereof) elect to become a Participant in the Plan by completing and filing a subscription
agreement authorizing the Company to make payroll deductions (as set forth in Section 5 hereof) at least five (5) business days prior to the applicable Enrollment Date unless a later
time for filing the subscription agreement is set by the Administrator for all Employees. Unless a Participant, by giving written notice (or such other notice as may from time to time be prescribed by
the Administrator), elects not to participate with respect to any subsequent Offering Period, the Participant shall be deemed to have accepted each new offer and to have authorized payroll deductions
in respect thereof during each subsequent Offering Period. 

Section 5. Payroll Deductions.  

        (a)   An
Employee may, in accordance with rules and procedures adopted by the Administrator and subject to the limitation set forth in Section 2(b) hereof, authorize
payroll deductions in amounts which are not less than one percent (1%) and not more than fifteen percent (15%) of such Employee's Compensation on each payday occurring during an Offering Period.
Payroll deductions shall commence on the first payroll paid following the Enrollment Date, and shall end on the last payroll paid prior to
the Purchase Date of the Offering Period to which the subscription agreement is applicable, unless sooner terminated by the Participant's withdrawal from the Plan or termination of the Participant's
Continuous Status as an Employee as provided in Section 8 hereof. A Participant may decrease (but not increase) his or her rate of payroll deductions at any time during an Offering Period, but
not more frequently than once during each Offering Period, or as may be determined by the Administrator prior to the commencement of an Offering Period, by giving written notice (or such other notice
as may from time to time be prescribed by the Administrator). The change in rate shall be effective the first full payroll period following five (5) business days after the Company's receipt of
the new subscription agreement unless the Company elects to process a given change in rate of payroll deductions more quickly. 

        (b)   All
payroll deductions made by a Participant shall be credited to such Participant's account under the Plan and shall be withheld in whole percentages only. A
Participant may not make any additional payments into such account. 

        (c)   Notwithstanding
the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 2(b) hereof, a Participant's rate of
payroll deductions may be decreased by the Company to zero percent (0%) at any time during an Offering Period. Payroll deductions shall recommence at the rate provided for in such Participant's
subscription agreement at the beginning of the first Offering Period which is scheduled to end the following calendar year, unless a Participant increases or decreases the rate of his or her payroll
deductions as provided in Section 5(a) hereof, or terminates his or her participation in the Plan as provided in Section 8 hereof. 

Section 6. Purchase of Shares.  

        (a)   Unless
a Participant withdraws from the Plan as provided in Section 8 hereof, such Participant's election to purchase Shares shall be exercised automatically on
each Purchase Date, and the maximum number of whole Shares subject to option shall be purchased for each Participant at the applicable Purchase Price with the accumulated payroll deductions in each
Participant's account as of the Purchase Date. No fractional Shares may be purchased hereunder. Any payroll deductions accumulated in a Participant's account following the purchase of Shares on 

5

 

any
Purchase Date that are not sufficient to purchase a full Share shall be retained in the Participant's account for the subsequent Offering Period, subject to earlier withdrawal by the Participant
as provided in Section 8 hereof. Any additional amounts remaining in a Participant's account following the purchase of Shares on any Purchase Date that are equal to, or in excess of, the amount
required under this Section 6 to purchase at least one full Share shall be returned to the Participant as soon as reasonably practicable following the Purchase Date. During a Participant's
lifetime, a Participant's option to purchase Shares hereunder is exercisable only by the Participant. 

Section 7. Delivery of Shares; Withdrawal or Sale of Shares.  

        As promptly as reasonably practicable after each Purchase Date, the Company shall either arrange the delivery of the whole Shares purchased on such date by each
Participant to the Participant's brokerage account or arrange the delivery to the Participant of a share certificate representing such Shares. 

Section 8. Withdrawal; Termination of Employment.  

        (a)   A
Participant may withdraw all, but not less than all, of the payroll deductions credited to such Participant's account (that have not been used to purchase Shares)
under the Plan by giving written notice to the Company (or such other administrator the Company may designate) at least five (5) business days prior to the Purchase Date of the Offering Period
in which the withdrawal occurs. Withdrawal of payroll deductions shall be deemed to be a withdrawal from the Plan. All of the payroll deductions credited to such Participant's account (that have not
been used to purchase Shares) shall be paid to such Participant promptly after receipt of such Participant's notice of withdrawal, and such Participant's eligibility to participate in the Plan for the
Offering Period in which the withdrawal occurs shall be automatically terminated. No further payroll deductions for the purchase of Shares shall be made for such Participant during such Offering
Period. If a Participant withdraws from an Offering Period, payroll deductions for such Participant shall not resume at the beginning of the succeeding Offering Period unless the Participant timely
delivers to the Company a new subscription agreement in accordance with the provisions of Section 4 hereof. A Participant's withdrawal from an Offering Period shall not have any effect upon a
Participant's eligibility to participate in any similar plan which may
hereafter be adopted by the Company or in succeeding Offering Periods which commence after termination of the Offering Period from which the Participant withdraws. 

        (b)   Upon
termination of a Participant's Continuous Status as an Employee during the Offering Period for any reason, including Participant's voluntary termination, retirement
or death, all the payroll deductions credited to such Participant's account (that have not been used to purchase Shares) shall be returned to such Participant or, in the case of such Participant's
death, to the person or persons entitled thereto under Section 12 hereof, and such Participant's option shall be automatically terminated. Such termination shall be deemed a withdrawal from the
Plan. 

Section 9. Interest.  

        No interest shall accrue on or be payable by the Company with respect to the payroll deductions of a Participant in the Plan. 

Section 10. Stock Subject to Plan.  

        (a)   Subject
to adjustment upon Changes in Capitalization of the Company as provided in Section 16 hereof, the maximum aggregate number of Shares which shall be
reserved for sale under the Plan for all Offering Periods that commence during each fiscal year of the Company 

6

 

occurring
during the term of the Plan shall be 2,000,000 Shares, plus an annual increase to be added on the first day of the Company's fiscal year (beginning 2005) equal to the lesser of
(i) 600,000 Shares or (ii) one percent (1%) of the number of outstanding shares of the Company on the last day of the immediately preceding fiscal year. Such Shares shall be available as
of the first day of the first Offering Period that commences in each such fiscal year. The Shares may consist, in whole or in part, of authorized and unissued Shares or treasury Shares. If the total
number of Shares which would otherwise be subject to options granted pursuant to Section 2(a) hereof on an Enrollment Date exceeds the number of Shares then available under the Plan (after
deduction of all Shares for which options have been exercised or are then outstanding), the Administrator shall make a pro rata allocation of the Shares remaining available for option grant in as
uniform a manner as shall be practicable and as it shall determine to be equitable. In such event, the Administrator shall give written notice to each Participant of such reduction of the number of
option Shares affected thereby and shall similarly reduce the rate of payroll deductions, if necessary. 

        (b)   No
Participant shall have rights as a stockholder with respect to any option granted hereunder until the date on which such Shares shall be deemed to have been purchased
by the Participant in accordance with Section 6 hereof. 

        (c)   Shares
purchased on behalf of a Participant under the Plan shall be registered in the name of the Participant or, if requested in writing by the Participant, in the
names of the Participant and the Participant's spouse. 

Section 11. Administration.  

        The Plan shall be administered by the Board or a Committee. The Board or the Committee shall have full power and authority, subject to the provisions of the Plan,
to promulgate such rules and regulations as it deems necessary for the proper administration of the Plan, to interpret the provisions and supervise the administration of the Plan, and to take all
action in connection therewith or in relation thereto as it deems necessary or advisable. Any decision reduced to writing and signed by a majority of the members of the Committee shall be fully
effective as if it had been made at a meeting duly held. The Company shall pay all expenses incurred in the administration of the Plan. No member of the Board or Committee shall be personally liable
for any action, determination, or interpretation made in good faith with respect to the Plan, and all members of the Board or Committee shall be fully indemnified by the Company with respect to any
such action, determination or interpretation. 

        The
Plan shall be administered such that all Eligible Employees of the Company (or of any Designated Subsidiary) shall have equal rights and privileges under this Plan so that this Plan
qualifies as an "employee stock purchase plan" within the meaning of Section 423 of the Code or applicable Treasury regulations thereunder. Any provision of this Plan that is inconsistent with
Section 423 or applicable Treasury regulations shall, without further act or amendment by the Company, the Board or the Administrator, be reformed to comply with the equal rights and privileges
requirement of Section 423 or applicable Treasury regulations. 

        All
decisions, determinations and interpretations of the Board or Committee shall be final and binding on all persons, including the Company, its Parent, any Subsidiary, the Employee (or
any person claiming any rights under the Plan through any Employee) and any stockholder of the Company, its Parent or any Subsidiary. 

Section 12. Designation of Beneficiary.  

        (a)   A
Participant may file, on forms supplied by and delivered to the Company (or such other administrator the Company may designate), a written designation of a beneficiary
who is to 

7

 

receive
Shares and/or cash, if any, remaining in such Participant's account under the Plan in the event of the Participant's death. 

        (b)   Such
designation of beneficiary may be changed by the Participant at any time by written notice. In the event of the death of a Participant and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such Participant's death, the Company shall deliver the balance of the Shares and/or cash credited to Participant's account
to the executor or administrator of the estate of the Participant or, if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may
deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate. 

Section 13. Transferability.  

        Neither payroll deductions credited to a Participant's account nor any rights with regard to the exercise of an option or any rights to receive Shares under the
Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by the laws of descent and distribution or as provided in Section 12 hereof) by the Participant. Any
such attempt at assignment, transfer, pledge or other disposition shall be without effect. 

Section 14. Use of Funds.  

        All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions. 

Section 15. Reports.  

        Individual accounts shall be maintained by the Company for each Participant in the Plan. Statements of account shall be given to each Participant at least
annually which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 

Section 16. Effect of Certain Changes.  

        In the event of a Change in Capitalization or the distribution of an extraordinary dividend, the Administrator shall conclusively determine the appropriate
equitable adjustments, if any, to be made under the Plan, including without limitation adjustments to the number of Shares which have been authorized for issuance under the Plan, but have not yet been
placed under option, as well as the Purchase Price of each option under the Plan which has not yet been exercised. 

        In
the event of a dissolution or liquidation of the Company, any Offering Period then in progress will terminate immediately prior to the consummation of such action, unless otherwise
provided by the Board. In the event of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a
parent or subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute for outstanding options, the Offering Period then in progress shall be
shortened and a new Purchase Date shall be set (the "New Purchase Date"), as of which date any Offering Period then in progress will terminate. The New
Purchase Date shall be on or before the date of consummation of the transaction and the Board shall notify each Participant in writing that the Purchase Date for his or her option has been changed to
the New Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in
Section 8. For purposes of this Section 16, an option granted under the 

8

 

Plan
shall be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be
entitled to receive upon exercise of the option the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon
the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the number of Shares of Common Stock covered by the option at such time (after giving
effect to any adjustments in the number of Shares covered by the option as provided for in this Section 16); provided however that if the consideration received in the transaction is not solely
common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration
to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in fair market value to the per Share consideration received by holders of Common
Stock in the transaction. 

Section 17. Amendment or Termination.  

        The Board may at any time terminate or amend the Plan. Except as provided in Section 16 hereof, no such termination may adversely affect options previously
granted and no amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant. To the extent necessary to comply with Section 423 of the
Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval in such a manner and to such a degree as
required. 

Section 18. Notices.  

        All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when they are
received in a timely manner in the form
specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

Section 19. Regulations and Other Approvals; Governing Law.  

        (a)   This
Plan and the rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect
to the choice of law principles thereof, except to the extent that such law is preempted by federal law. 

        (b)   The
obligation of the Company to sell or deliver Shares with respect to options granted under the Plan shall be subject to all applicable laws, rules and regulations,
including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Administrator. 

Section 20. Withholding of Taxes.  

        If the Participant makes a disposition, within the meaning of Section 424(c) of the Code of any Share or Shares issued to Participant pursuant to
Participant's exercise of an option, and such disposition occurs within the two-year period commencing on the day after the Enrollment Date or within the one-year period
commencing on the day after the Purchase Date, Participant shall, within ten (10) days of such disposition, notify the Company thereof and thereafter immediately deliver to the Company any
amount of Federal, state or local income taxes and other amounts which the Company informs the Participant the Company may be required to withhold. 

Section 21. Effective Date.  

        Subject to the approval of the Plan by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board,
the Plan shall be effective as of the first 

9

 

Trading
Day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective (the "Effective Date"). 

Section 22. Term of Plan.  

        No option shall be granted pursuant to the Plan and no Offering Period shall commence on or after the tenth anniversary of the Effective Date, but options
theretofore granted may extend beyond that date. 

10

   SCHEDULE A—DESIGNATED SUBSIDIARIES  

1

QuickLinks

Exhibit 10.3Filed by Automated Filing Services Inc. (604) 609-0244 - Silverado Gold Mines Ltd. - Exhibit 10.13

 FORM OF WARRANT EXERCISE AGREEMENT  

 THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED
  UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND ARE BEING OFFERED AND SOLD
  IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT. SUCH
  SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
  UNLESS THEY ARE REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE
  EXEMPT FROM SUCH REGISTRATION. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
  BY THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") OR BY ANY STATE
  SECURITIES ADMINISTRATION OR REGULATORY AUTHORITY.  

 WARRANT EXERCISE AGREEMENT  

 SILVERADO GOLD MINES LTD.  

 WARRANT EXERCISE AGREEMENT (the “Agreement”)
  made as of this _____ day of December, 2003 between Silverado Gold Mines
  Ltd., a British Columbia company with its corporate office at Suite 505,
  1111 West Georgia Street, Vancouver, British Columbia, Canada V6E 4M3 (the "Company")
  and the undersigned (the "Investor"). 

 WHEREAS:

	A. 	The Company sold an aggregate of 11,750,000 units
        (the “Units”) at a price of $0.10 US per Unit pursuant to Rule
        506 of Regulation D of the United States Securities Act of 1933
        (the “1933 Act”) and applicable state securities laws (the "Offering").
        Each Unit was comprised of one common share of the Company (each a “Share”)
        and one share purchase warrant (each a “Warrant”). Each Warrant
        entitles the investor to purchase one additional common share of the Company
        for a one year period from the closing of the Offering at an exercise
        price, subject to adjustment, of $0.20 US per share. 

	 	 
	B. 	The Investor is an “accredited investor”, as defined in Rule
      501 of Regulation D of the 1933 Act. 
	 	 
	C. 	The Investor purchased the number of units set forth
        on the signature page to this Agreement (the “Investor Units”)
        consisting of a corresponding number of shares (the “Investor Shares”)
        and a corresponding number of share purchase warrants (the “Investor
        Warrants”) pursuant to the Offering. 

	 	 
	D. 	The Company has filed a registration statement on
        Form SB-2 pursuant to the 1933 Act in order to qualify the resale by the
        Investor of the Investor Shares and the shares issuable upon exercise
        of the Investor Warrants (the “Investor Warrant Shares”), which
        registration statement was declared effective by the Securities and Exchange
        Commission on October 20, 2003. 

	 	 
	E. 	The Investor has agreed to exercise the Investor
        Warrants at a reduced exercise price on the terms and subject to the conditions
        of this Warrant Exercise Agreement. 

NOW, THEREFORE, for and in consideration of the premises and the mutual
  covenants hereinafter set forth, the parties hereto do hereby agree as follows:

	1. 	EXERCISE OF INVESTOR WARRANTS 
	 	 	 
	1.1 	Subject to the terms and
        conditions hereinafter set forth, the exercise price of the Investor Warrants
        is hereby reduced to $0.075 per share provided that: 

	 	 	 
	 	(a) 	the Investor Warrants are exercised on or before January 1, 2004; and
    

 

	 	(b)	the Investor will be entitled to exercise all or any portion
      of the Investor Warrants.
	 	 	 
	 	Any Investor Warrants that
        are not exercised by January 1, 2004 in the manner contemplated by this
        Section 1.1 will remain exercisable at the price of $0.20 per share.

	 	 	 
	1.2 	Upon exercise of the Investor
        Warrants by the Investor in accordance with Section 1.1, the Company will
        deliver to the Investor certificates representing the Investor Warrant
        Shares forthwith upon receipt of the exercise price for the Investor Warrant
        Shares.

	 	 	 
	1.3 	Upon exercise of the Investor
        Warrants in accordance with Section 1.1 by the Investor, the Company hereby
        agrees to issue to the Investor additional warrants to purchase a number
        of shares of the Company equal to the number of Investor Warrants exercised,
        which additional warrants will be exercisable for a period from the date
        of this Agreement to January 10, 2005 at an exercise price, subject to
        adjustment, of $0.20 US per share (the “Investor Replacement Warrants”).
        The Investor Replacement Warrants will be in the form attached hereto
        as Schedule A. The Investor acknowledges that the Company may enter into
        additional warrant exercise agreements with investors in the Offering
        whereby the Company may grant additional replacement warrants on the equivalent
        terms to the Investor Replacement Warrants to be issued by the Company
        pursuant to this Agreement (these additional replacement warrants, together
        with the Investor Replacement Warrants, are referred to collectively as
        the “Replacement Warrants”).

	 	 	 
	1.4 	Notwithstanding the exercise
        price of the Investor Replacement Warrants, the Company agrees that the
        Investor will be entitled to exercise the Investor Replacement Warrants
        at a reduced exercise price of $0.075 per share, provided that:

	 	 	 
	 	(a)	the Investor Replacement Warrants are exercised on or before
      January 10, 2004;
	 	 	 
	 	(b)	in aggregate, a total of 5,000,000 of
        the Replacement Warrants are exercised by investors in the Offering, including
        the Investor Replacement Warrants exercised by the Investor, on or before
        January 10, 2004;

	 	 	 
	 	(c)	in the event that, in aggregate, more
        than 5,000,000 of the Replacement Warrants are exercised on or before
        January 10, 2004, then the number of Investor Replacement Warrants deemed
        exercised by the Investor will be reduced according to the following formula
        such that in aggregate 5,000,000 Replacement Warrants will have been exercised:

	 	Number of Investor Replacement	 	5,000,000 x	[Number of Investor Replacement
	 	Warrants Deemed	=	 	Warrants Exercised by Investor]
	 	Exercised by the Investor	 	 	 
	 	 	 
	
	

	 	 	 	 	 
	 	 	 	[Aggregate Number of Replacement
	 	 	 	Warrants Exercised]

	1.5	 In the event the Investor
        Replacement Warrants are exercised at the reduced exercise price of $0.075
        per share on or before January 10, 2004 in accordance with Section 1.4
        of this Agreement, the Company will:

	 	 	 
	 	(a)	issue to the Investor additional warrants to purchase
        an additional number shares of the Company equal to the number of Investor
        Replacement Warrants exercised pursuant to Section 1.4 of this Agreement,
        which additional warrants will be exercisable for a period from the date
        of issue to January 10, 2005 at an exercise price, subject to adjustment,
        of $0.20 US per share (the “Investor Additional Replacement Warrants”).
        In aggregate, a total of 5,000,000 additional warrants will be issued
        to the investors exercising their Replacement Warrants, as contemplated
        in Section 1.4, including the Investor Additional

 

	 	
	Replacement Warrants (together,
        the “Additional Replacement Warrants”). The Investor Additional
        Replacement Warrants will be in the form attached hereto as Schedule B;
        and

	 	 	 
	 	(b)	undertake to expeditiously register the resale
      of:
	 	 	 	 
	 	 	(i) 	the resale of the shares issued to the
        Investor upon exercise of the Investor Replacement Warrants in accordance
        with Section 1.4 of this Agreement (the “Investor Replacement Warrant
        Shares”). In aggregate, a total of 5,000,000 shares issued upon exercise
        of the Replacement Warrants, including the Investor Replacement Warrant
        Shares held by the Investor, will be included on the registration statement;

	 	 	 	 
	 	 	(ii)	the resale of the shares issuable to
        the Investor upon exercise of the Investor Additional Replacement Warrants
        (the “Investor Additional Replacement Warrant Shares”). In aggregate,
        a total of 5,000,000 shares issuable upon exercise of the Additional Replacement
        Warrants will be included on the registration statement; and

	 	 	 	 
	 	 	(iii)	the resale of the shares issuable upon the balance of the
      unexercised Investor Replacement Warrants. In aggregate, a total of 6,750,000
      shares issuable upon exercise of the unexercised Replacement Warrants will
      be included on the registration statement;
	 	 	 	 
	 	 	by the filing of a registration
        statement on Form SB-2, or any other eligible form, with the Securities
        Exchange Commission pursuant to the 1933 Act (the “Additional Registration
        Statement”). The Company will pay all required expenses and fees
        in connection with the preparation and filing of the Additional Registration
        Statement. The Investor agrees that, without limitation, the Company may
        exercise additional shares and warrant shares held by other investors
        on the Additional Registration Statement. The Additional Registration
        Statement will be filed with the Securities and Exchange Commission no
        later than 60 days from the date of the completion of the exercise of
        the aggregate of 5,000,000 Replacement Warrants in accordance with Section
        1.4 of this Agreement.

	 	 	 	 
	1.6	 Limitation on Exercise.
        Notwithstanding the provisions of this Agreement, the Investor Warrants,
        the Investor Replacement Warrants or the Investor Additional Replacement
        Warrants, in no event (except (i) as specifically provided in this Agreement
        as an exception to this provision, (ii) while there is outstanding a tender
        offer for any or all of the shares of the Company’s Common Stock,
        or (iii) at the Investor’s option, on at least sixty-five (65) days’
        advance written notice from the Investor) shall the Investor be entitled
        to exercise the Investor Replacement Warrants or the Investor Additional
        Replacement Warrants, or shall the Company have the obligation to issue
        shares upon such exercise of all or any portion of the Investor Replacement
        Warrants or the Investor Additional Replacement Warrants to the extent
        that after such exercise the sum of (1) the number of shares of Common
        Stock beneficially owned by the Investor and its affiliates (other than
        shares of Common Stock which may be deemed beneficially owned through
        the ownership of the unexercised portion of the Investor Replacement Warrants
        and the Investor Additional Replacement Warrants or other rights to purchase
        Common Stock or other convertible securities), and (2) the number of shares
        of Common Stock issuable upon the exercise of the Investor Replacement
        Warrants and the Investor Additional Replacement Warrants with respect
        to which the determination of this proviso is being made, would result
        in beneficial ownership by the Investor and its affiliates of more than
        4.99% of the outstanding shares of Common Stock (after taking into account
        the shares to be issued to the Investor upon such exercise). For purposes
        of the proviso to the immediately preceding sentence, beneficial ownership
        shall be determined in accordance with Section 13(d) of the Securities
        Exchange Act of 1934, as amended (the “1934 Act”), except as
        otherwise provided in clause (1) of such sentence. The Investor, by its
        execution of this Agreement, further agrees that if the Investor transfers
        or assigns any of the Investor Replacement Warrants or Investor Additional
        Replacement Warrants to a party who or which would not be considered such
        an affiliate, such

	 	assignment shall be made subject to the transferee’s
        or assignee’s specific agreement to be bound by the provisions of
        this Section 1.6 as if such transferee or assignee were the original holder
        hereof. 

	 	 
	2. 	RESTRICTED SHARE AGREEMENTS OF THE INVESTOR 
	 	 
	2.1 	The Investor agrees to resell the Investor Warrant
        Shares, the Investor Replacement Warrants, the Investor Replacement Warrant
        Shares, the Investor Additional Replacement Warrants and the Investor
        Additional Replacement Warrant Shares only in accordance with the provisions
        of the 1933 Act and applicable state securities laws. 

	 	 
	2.2 	The Investor acknowledges and agrees that the Investor
        Replacement Warrants, the Investor Replacement Warrant Shares, the Investor
        Additional Replacement Warrants and the Investor Additional Replacement
        Warrant Shares are or will be “restricted securities” under
        the 1933 Act and all certificates representing the Investor Replacement
        Warrants, the Investor Replacement Warrant Shares, the Investor Additional
        Replacement Warrants and the Investor Additional Replacement Warrant Shares
        will be endorsed with the following legend in accordance with Regulation
        D of the Act or such similar legend as deemed advisable by the lawyers
        for the Investor to ensure compliance with the 1933 Act: 

      “THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
        THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN OFFERED AND SOLD
        IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE
        ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE
        TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE APPLICABLE PROVISIONS
        OF THE ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT.” 

	 	 
	2.3	 The Investor is an “accredited investor”, as defined in Rule
      501 of Regulation D of the 1933 Act. 
	 	 
	2.4 	The Investor has had full opportunity to review the
        Company’s filings with the SEC pursuant to the Securities Exchange
        Act of 1934, including the Company’s annual reports on Form 10-KSB
        and quarterly reports on Form 10-QSB, and additional information regarding
        the business and financial condition of the Company. The Investor believes
        it has received all the information it considers necessary or appropriate
        for deciding whether to purchase the securities that are the subject of
        this Agreement. The Investor further represents that it has had an opportunity
        to ask questions and receive answers from the Company regarding the terms
        and conditions of the securities that are the subject of this agreement
        and the business, properties, prospects and financial condition of the
        Company. The Investor has had full opportunity to discuss this information
        with the Investor’s legal and financial advisers prior to execution
        of this Agreement. 

	 	 
	2.5 	The Investors is an investor in securities of companies
        in the development stage and acknowledges that it is able to fend for
        itself, can bear the economic risk of its investment, and has such knowledge
        and experience in financial or business matters such that it is capable
        of evaluating the merits and risks of the investment in the securities
        that are the subject of this Agreement. The Investor can bear the economic
        risk of this investment, and was not organized for the purpose of acquiring
        the securities that are the subject of this Agreement. 

	 	 
	2.6 	The securities that are the subject of this Agreement
        will be acquired by the Investor for investment for the Investor's own
        account, not as a nominee or agent, and not with a view to the resale
        or distribution of any part thereof, and that the Investor has no present
        intention of selling, granting any participation in, or otherwise distributing
        the same. The Investor does not have any contract, undertaking, agreement
        or arrangement with any person to sell, transfer or grant participations
        to such person or to any third person, with respect to any of the securities
        that are the subject of this Agreement. 

	3. 	MISCELLANEOUS 
	 	 
	3.1	 Any notice or other communication given hereunder
        shall be deemed sufficient if in writing and sent by registered or certified
        mail, return receipt requested, addressed to the Company, at its corporate
        office, at Suite 505, 1111 West Georgia Street, Vancouver, British Columbia,
        Canada V6E 4M3, Attention: Mr. Garry L. Anselmo, President, and to the
        Investor at his address indicated on the last page of this Agreement.
        Notices shall be deemed to have been given on the date of mailing, except
        notices of change of address, which shall be deemed to have been given
        when received. 

	 	 
	3.2 	The parties agree to execute and deliver all such
        further documents, agreements and instruments and take such other and
        further action as may be necessary or appropriate to carry out the purposes
        and intent of this Agreement. 

	 	 
	3.3 	This Agreement supersedes and replaces any other
        agreements, whether oral or in writing, regarding the exercise of the
        Investor Warrants. 

	 	 
	3.4 	This Agreement may be executed in counterpart, each
        of which shall be deemed an original, all of which together shall constitute
        one and the same instrument. 

	 	 
	3.5 	Notwithstanding the place where this Agreement may
        be executed by any of the parties hereto, the parties expressly agree
        that all the terms and provisions hereof shall be construed in accordance
        with and governed by the laws of the Province of British Columbia. 

IN WITNESS WHEREOF, this Agreement is executed as of the day and year
  first written above. 

	Number of Units Originally Purchased:	Units
	Signature of Investor or	 
	Authorized Signatory for Investor	 
	(if Investor is not an individual):	 
	 	 
	Name of Authorized Signatory for Investor	 
	(if Investor is not an individual):	 
	 	 
	Name of Investor:	 
	 	 
	Address of Investor:	 
	 	 
	Jurisdiction of Incorporation of Investor: (If Investor is	 
	a Corporation)	 
	 	 
	ACCEPTED BY:	 
	SILVERADO GOLD MINES LTD.	 
	 	 
	Signature Of Authorized Signatory:	 
	 	 
	Name of Authorized Signatory:	 
	 	 
	Position of Authorized Signatory:	 
	 	 
	Date of Acceptance:	 

 EXHIBIT A 

 FORM OF REPLACEMENT WARRANT CERTIFICATE

 

  

 NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE
  HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933,
  AS AMENDED (THE “SECURITIES ACT”). THIS WARRANT AND THE UNDERLYING
  SECURITIES ARE RESTRICTED AND MAY NOT BE EXERCISED, OFFERED, RESOLD, PLEDGED
  OR TRANSFERRED EXCEPT AS PERMITTED APPLICABLE FEDERAL (UNITED STATES), STATE
  AND FOREIGN SECURITIES LAWS, PURSUANT TO EITHER AN EFFECTIVE REGISTRATION STATEMENT
  OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

WARRANT CERTIFICATE NO. [@]

SILVERADO GOLD MINES LTD., 

  A BRITISH COLUMBIA COMPANY

  REPLACEMENT COMMON STOCK PURCHASE WARRANT CERTIFICATE

  DECEMBER __, 2003

THIS IS TO CERTIFY THAT, for value received, «name»,
  of «address»«state»«country» (the
  “Holder”), shall have the right to purchase from SILVERADO GOLD
  MINES LTD., a British Columbia company (the “Company”), [NO.
  OF WARRANT SHARES] ([NO. OF WARRANT SHARES]) fully paid and nonassessable
  common shares of the Company (the “Common Shares”) at an exercise
  price equal to $0.20 per share (the "Exercise Price") subject to further
  adjustment as set forth in Section 5 of the Terms and Conditions, at any time,
  subject to Section 6 of the Terms and Conditions, until 5:00 P.M., Eastern time,
  on the 10th day of January, 2005 (the “Expiration Date”) in accordance
  with the terms hereof and the Terms and Conditions set forth on the reverse
  of this Warrant Certificate, to which the Holder by acceptance of this Warrant
  Certificate agrees.

 IN WITNESS WHEREOF, the Company has caused this Warrant
  Certificate to be duly executed and delivered by its duly authorized officer.

	 	 	 	SILVERADO GOLD MINES LTD.
	 	 	 	 	 
	Attest:	 	 	By:	 
	 	John R. MacKay, Secretary 	 	 	Garry L. Anselmo, President

STATEMENT OF TERMS AND CONDITIONS

	1.	Exercise of Warrants.
        This Warrant is exercisable in whole or in partial allotments of no less
        than 1,000 shares at the Exercise Price per Common Share payable hereunder,
        payable in cash or by certified or official bank check. Upon surrender
        of this Warrant Certificate with the annexed Notice of Exercise Form duly
        executed, together with payment of the Exercise Price for the Common Shares
        purchased, the Holder shall be entitled to receive a certificate or certificates
        for the Common Shares so purchased. No fractional shares shall be issued
        in connection with any exercise of this Warrant. In lieu of the issuance
        of any fractional share, the Company shall make a cash payment equal to
        the then fair market value of such fractional share as determined by the
        Company’s Board of Directors.

        NOTWITHSTANDING ANY OTHER PROVISION OF THIS WARRANT CERTIFICATE, THE
        HOLDER SHALL NOT BE ENTITLED TO EXERCISE ANY WARRANTS IF, AFTER GIVING
        EFFECT TO THE EXERCISE, THE HOLDER WILL BE THE LEGAL OR BENEFICIAL OWNER
        OF MORE THAN 4.9% OF THE COMMON SHARES OF THE COMPANY. THE HOLDER WILL
        PROVIDE TO THE COMPANY SUCH INFORMATION AS THE COMPANY MAY REASONABLY
        REQUIRE TO ENSURE COMPLIANCE WITH THIS PROVISION.

      

	2.	Reservation of Shares.
        The Company hereby agrees that at all times during the term of this
        Warrant there shall be reserved for issuance upon exercise of this Warrant
        such number of Common Shares as shall be required for issuance upon exercise
        of this Warrant (the “Warrant Shares”).

	3.	Mutilation or Loss of
        Warrant. Upon receipt by the Company of evidence satisfactory to it
        of the loss, theft, destruction or mutilation of this Warrant, and (in
        the case of loss, theft or destruction) receipt of reasonably satisfactory
        indemnification, and (in the case of mutilation) upon surrender and cancellation
        of this Warrant, the Company will execute and deliver a new Warrant of
        like tenor and date and any such lost, stolen, destroyed or mutilated
        Warrant shall thereupon become void.

	4.	Rights of the Holder.
        The Holder shall not, by virtue hereof, be entitled to any rights of a
        stockholder in the Company, either at law or equity, and the rights of
        the Holder are limited to those expressed in this Warrant and are not
        enforceable against the Company except to the extent set forth herein.

	5.	Protection Against Dilution.
        The Exercise Price and the number of shares which can be purchased
        by the Holder upon the exercise of this Warrant shall be subject to adjustment
        in the events and in the manner following: (1) If and whenever the shares
        at any time outstanding shall be subdivided into a greater or consolidated
        into a lesser number of shares, the Exercise Price shall be decreased
        or increased proportionately as the case may be; upon any such subdivision
        or consolidation, the number of shares which can be purchased upon the
        exercise of this warrant certificate shall be increased or decreased proportionately
        as the case may be. (2) In case of any capital reorganization or of any
        reclassification of the capital of the Company or in case of the consolidation,
        merger or amalgamation of the Company with or into any other company,
        this Warrant shall after such capital reorganization, reclassification
        of capital, consolidation, merger or amalgamation confer the right to
        purchase the number of shares or other securities of the Company or of
        the Company resulting from such capital reorganization, reclassification,
        consolidation, merger or amalgamation, as the case may be, to which the
        Holder of the shares deliverable at the time of such capital reorganization,
        reclassification of capital, consolidation, merger or amalgamation, upon
        the exercise of this Warrant would have been entitled. On such capital
        reorganization, reclassification, consolidation, merger or amalgamation
        appropriate adjustments shall be made in the application of the provisions
        set forth herein with respect to the rights and interest thereafter of
        the Holder of this Warrant so that the provisions set forth herein shall
        thereafter be applicable as nearly as may reasonably be in relation to
        any shares or other securities thereafter deliverable on the exercise
        of this Warrant. (3) The rights of the Holder evidenced hereby are to
        purchase shares prior to or on the date set out on the face of this Warrant.
        If there shall, prior to the exercise of any of the rights evidenced hereby,
        be any reorganization of the authorized capital of the Company by way
        of consolidation, merger, subdivision, amalgamation or otherwise, or the
        payment of any stock dividends, then there shall automatically be an adjustment
        in either or both of the number of shares which may be purchased pursuant
        hereto or the price at which such shares may be purchased so that the
        rights evidenced hereby shall thereafter as reasonably as possible be
        equivalent to those originally granted hereby. The Company shall have
        the sole and exclusive power to make such adjustments as it considers
        necessary and desirable. (4) The adjustments provided for herein in the
        subscription rights represented by this Warrant are cumulative.

	6.	Limit Price Acceleration
        of Exercise Period. In the event that, at any time following the date
        that the Company shall have filed and obtained effectiveness of a registration
        statement registering the resale of the shares to be acquired by the holder
        on exercise of the warrants, the Company’s common shares shall trade
        at a price in excess of $0.40 per share (the “Limit Price”)
        for a period of 20 consecutive trading days, then the Holder shall have
        15 days in which to elect whether or not to exercise the Warrants (the
        “Accelerated Exercise Period”). In the event the Warrants are
        not exercised within the Accelerated Exercise Period, they will expire
        and the Holder will no longer have any right to exercise the Warrants.
        Nothing in this Warrant Certificate will obligate the Company to file
        any registration statement registering the resale of the shares to be
        acquired by the holder on exercise of the warrants.

	7.	Transfer to Comply with
        the Securities Act. This Warrant and the Warrant Shares have not been
        registered under the Securities Act of 1933, as amended, (the "Act") and
        has been issued to the Holder for investment purposes and not with a view
        to the distribution of either the Warrant or the Warrant Shares. Neither
        this Warrant nor any of the Warrant Shares or any other security issued
        or issuable upon exercise of this Warrant may be sold, transferred, pledged
        or hypothecated in the absence of an effective registration statement
        under the Act relating to such security or an opinion of counsel reasonably
        satisfactory to the Company that registration is not required under the
        Act. Each certificate for the Warrant, the Warrant Shares and any other
        security issued or issuable upon exercise of this Warrant shall contain
        a legend on the face thereof, in form and substance satisfactory to counsel
        for the Company, setting forth the restrictions on transfer contained
        in this Section. The Holder understands that this Warrant and the stock
        purchasable hereunder constitute “restricted securities” under
        federal securities laws and acknowledges that Rule 144 of the Securities
        and Exchange Commission is not now, and may not in the future be, available
        for resales of this Warrant and/or the stock purchasable hereunder.

        All certificates representing the Warrant Shares will be endorsed with
        the following legend:

        “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN
        OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
        OF THE ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, TRANSFERRED,
        PLEDGED OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED
        UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE EXEMPT FROM SUCH REGISTRATION
        REQUIREMENTS.”

	8.	Payment of Taxes.
        The Company shall not be required to pay any tax or other charge imposed
        in connection with the exercise of this Warrant or a permissible transfer
        involved in the issuance of any certificate for shares issuable under
        this Warrant in the name other than that of the Holder, and in any such
        case, the Company shall not be required to issue or deliver any stock
        certificate until such tax or other charge has been paid or it has been
        established to the Company’s satisfaction that no such tax or other
        charge is due.

	9.	Notices. Any notice
        required or permitted hereunder shall be given in writing and shall be
        deemed effectively given upon, (a) by personal delivery or telecopy, or
        (ii) one business day after deposit with a nationally recognized overnight
        delivery service such as Federal Express, with postage and fees prepaid,
        addressed to each of the other parties thereunto entitled at the following
        addresses, or at such other addresses as a party may designate by written
        notice to each of the other parties hereto. COMPANY: Silverado
        Gold Mines Ltd., Attention: Garry L. Anselmo, President, Suite 505,
        1111 West Georgia Street, Vancouver, British Columbia, Canada V6E 4M3,
        fax: (604) 682-3519; HOLDER: At the address set forth above.

	10.	
      
        Governing Law. This Warrant shall be deemed to be a contract
          made under the laws of the Province of British Columbia and for all
          purposes shall be governed by and construed in accordance with the laws
          of such Province applicable to contracts to be made and performed entirely
          within such Province.

      

	SUBSCRIPTION FORM

       TO: SILVERADO GOLD MINES LTD., A British Columbia
        company (the “Company”)

        The undersigned (the “Investor”) hereby exercises the right
        to purchase and hereby subscribes for the number of common shares in the
        capital stock of SILVERADO GOLD MINES LTD. (the “Shares”) referred
        to in the Warrant Certificate surrendered herewith according to the terms
        conditions thereof and herewith makes payment by cash, certified check
        or bank draft of the purchase price in full for the said shares in accordance
        with the Warrant.

        The Investor represents and warrants to the Company that:

	(a)	the Investor has not offered
        or sold the Shares within the meaning of the United States Securities
        Act of 1933 (the “Securities Act”);

	(b)	the Investor is acquiring
        the Shares for its own account for investment, with no present intention
        of dividing my interest with others or of reselling or otherwise disposing
        of all or any portion of the same;

	(c)	the Investor does not intend
        any sale of the Shares either currently or after the passage of a fixed
        or determinable period of time or upon the occurrence or non-occurrence
        of any predetermined event or circumstance;

	(d)	the Investor has no present
        or contemplated agreement, undertaking, arrangement, obligation, indebtedness
        or commitment providing for or which is likely to compel a disposition
        of the Shares;

	(e)	the Investor is not aware
        of any circumstances presently in existence which are likely in the future
        to prompt a disposition of the Shares;

	(f)	the Shares were offered
        to the Investor in direct communication between the Investor and the Company
        and not through any advertisement of any kind;

	(g)	the Investor has the financial means to bear
      the economic risk of the investment which it hereby agrees to make.
	(h)	This subscription form will also confirm the
      Investor’s understanding as follows:
	 	(1)	the Shares have not been registered
        under the Securities Act or applicable state “Blue Sky” laws
        and, therefore, the Shares may not be resold, transferred or hypothecated
        without the registration of the Shares, or an opinion of counsel satisfactory
        to the Company to the effect that such registration is not necessary.

	 	(2)	Only the Company can take action to
        register the Shares under the Securities Act or applicable state securities
        law or to comply with the requirements for an exemption under the Securities
        Act or applicable state securities law, and the Company is under no obligation
        to do so, and does not propose to attempt to do so.

	 	(3)	The certificates representing the Shares
        will be endorsed with the following legend:

        “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN
        OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
        OF THE ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, TRANSFERRED,
        PLEDGED OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED
        UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE EXEMPT FROM SUCH REGISTRATION
        REQUIREMENTS.”

	(i)	the Investor is an “accredited
        investor”, as defined in Rule 501 of Regulation D of the Securities
        Act.

        Please deliver a warrant certificate in respect of the common shares referred
        to in the warrant certificate surrendered herewith but not presently subscribed
        for, to the Investor.

        DATED this _____ day of _______________ , _____.

	Number of Shares Subscribed For:	 	 	Signature of Investor:	 
	 	 	 	 	 
	Name of Investor (please print):	 	 	Address of Investor:	 

 EXHIBIT B 

 FORM OF ADDITIONAL REPLACEMENT WARRANT CERTIFICATE 

 

 

 NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE
  HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933,
  AS AMENDED (THE “SECURITIES ACT”). THIS WARRANT AND THE UNDERLYING
  SECURITIES ARE RESTRICTED AND MAY NOT BE EXERCISED, OFFERED, RESOLD, PLEDGED
  OR TRANSFERRED EXCEPT AS PERMITTED APPLICABLE FEDERAL (UNITED STATES), STATE
  AND FOREIGN SECURITIES LAWS, PURSUANT TO EITHER AN EFFECTIVE REGISTRATION STATEMENT
  OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

WARRANT CERTIFICATE NO. [@]

SILVERADO GOLD MINES LTD., 

  A BRITISH COLUMBIA COMPANY

  ADDITIONAL REPLACEMENT COMMON STOCK PURCHASE WARRANT CERTIFICATE

  DECEMBER __, 2003

THIS IS TO CERTIFY THAT, for value received, «name»,
  of «address»«state»«country» (the
  “Holder”), shall have the right to purchase from SILVERADO GOLD
  MINES LTD., a British Columbia company (the “Company”), [NO. OF
  WARRANT SHARES] ([NO. OF WARRANT SHARES]) fully paid and nonassessable
  common shares of the Company (the “Common Shares”) at an exercise
  price equal to $0.20 per share (the "Exercise Price"), subject to
  further adjustment as set forth in Section 5 of the Terms and Conditions, at
  any time, subject to Section 6 of the Terms and Conditions, until 5:00 P.M.,
  Eastern time, on the 10th day of January, 2005 (the “Expiration Date”)
  in accordance with the terms hereof and the Terms and Conditions set forth on
  the reverse of this Warrant Certificate, to which the Holder by acceptance of
  this Warrant Certificate agrees.

  

  IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
  be duly executed and delivered by its duly authorized officer.

	 	 	 	SILVERADO GOLD MINES LTD.
	 	 	 	 	 
	Attest:	 	 	By:	 
	 	John R. MacKay, Secretary 	 	 	Garry L. Anselmo, President

STATEMENT OF TERMS AND CONDITIONS

	1.	Exercise of Warrants.
        This Warrant is exercisable in whole or in partial allotments of no less
        than 1,000 shares at the Exercise Price per Common Share payable hereunder,
        payable in cash or by certified or official bank check. Upon surrender
        of this Warrant Certificate with the annexed Notice of Exercise Form duly
        executed, together with payment of the Exercise Price for the Common Shares
        purchased, the Holder shall be entitled to receive a certificate or certificates
        for the Common Shares so purchased. No fractional shares shall be issued
        in connection with any exercise of this Warrant. In lieu of the issuance
        of any fractional share, the Company shall make a cash payment equal to
        the then fair market value of such fractional share as determined by the
        Company’s Board of Directors.

        NOTWITHSTANDING ANY OTHER PROVISION OF THIS WARRANT CERTIFICATE, THE
        HOLDER SHALL NOT BE ENTITLED TO EXERCISE ANY WARRANTS IF, AFTER GIVING
        EFFECT TO THE EXERCISE, THE HOLDER WILL BE THE LEGAL OR BENEFICIAL OWNER
        OF MORE THAN 4.9% OF THE COMMON SHARES OF THE COMPANY. THE HOLDER WILL
        PROVIDE TO THE COMPANY SUCH INFORMATION AS THE COMPANY MAY REASONABLY
        REQUIRE TO ENSURE COMPLIANCE WITH THIS PROVISION.

	2.	Reservation of Shares.
        The Company hereby agrees that at all times during the term of this Warrant
        there shall be reserved for issuance upon exercise of this Warrant such
        number of Common Shares as shall be required for issuance upon exercise
        of this Warrant (the “Warrant Shares”).

	3.	Mutilation or Loss of
        Warrant. Upon receipt by the Company of evidence satisfactory to it
        of the loss, theft, destruction or mutilation of this Warrant, and (in
        the case of loss, theft or destruction) receipt of reasonably satisfactory
        indemnification, and (in the case of mutilation) upon surrender and cancellation
        of this Warrant, the Company will execute and deliver a new Warrant of
        like tenor and date and any such lost, stolen, destroyed or mutilated
        Warrant shall thereupon become void.

	4.	Rights of the Holder.
        The Holder shall not, by virtue hereof, be entitled to any rights of a
        stockholder in the Company, either at law or equity, and the rights of
        the Holder are limited to those expressed in this Warrant and are not
        enforceable against the Company except to the extent set forth herein.

	5.	Protection Against Dilution.
        The Exercise Price and the number of shares which can be purchased by
        the Holder upon the exercise of this Warrant shall be subject to adjustment
        in the events and in the manner following: (1) If and whenever the shares
        at any time outstanding shall be subdivided into a greater or consolidated
        into a lesser number of shares, the Exercise Price shall be decreased
        or increased proportionately as the case may be; upon any such subdivision
        or consolidation, the number of shares which can be purchased upon the
        exercise of this warrant certificate shall be increased or decreased proportionately
        as the case may be. (2) In case of any capital reorganization or of any
        reclassification of the capital of the Company or in case of the consolidation,
        merger or amalgamation of the Company with or into any other company,
        this Warrant shall after such capital reorganization, reclassification
        of capital, consolidation, merger or amalgamation confer the right to
        purchase the number of shares or other securities of the Company or of
        the Company resulting from such capital reorganization, reclassification,
        consolidation, merger or amalgamation, as the case may be, to which the
        Holder of the shares deliverable at the time of such capital reorganization,
        reclassification of capital, consolidation, merger or amalgamation, upon
        the exercise of this Warrant would have been entitled. On such capital
        reorganization, reclassification, consolidation, merger or amalgamation
        appropriate adjustments shall be made in the application of the provisions
        set forth herein with respect to the rights and interest thereafter of
        the Holder of this Warrant so that the provisions set forth herein shall
        thereafter be applicable as nearly as may reasonably be in relation to
        any shares or other securities thereafter deliverable on the exercise
        of this Warrant. (3) The rights of the Holder evidenced hereby are to
        purchase shares prior to or on the date set out on the face of this Warrant.
        If there shall, prior to the exercise of any of the rights evidenced hereby,
        be any reorganization of the authorized capital of the Company by way
        of consolidation, merger, subdivision, amalgamation or otherwise, or the
        payment of any stock dividends, then there shall automatically be an adjustment
        in either or both of the number of shares which may be purchased pursuant
        hereto or the price at which such shares may be purchased so that the
        rights evidenced hereby shall thereafter as reasonably as possible be
        equivalent to those originally granted hereby. The Company shall have
        the sole and exclusive power to make such adjustments as it considers
        necessary and desirable. (4) The adjustments provided for herein in the
        subscription rights represented by this Warrant are cumulative.

	6.	Limit Price Acceleration
        of Exercise Period. In the event that, at any time following the date
        that the Company shall have filed and obtained effectiveness of a registration
        statement registering the resale of the shares to be acquired by the holder
        on exercise of the warrants, the Company’s common shares shall trade
        at a price in excess of $0.40 per share (the “Limit Price”)
        for a period of 20 consecutive trading days, then the Holder shall have
        15 days in which to elect whether or not to exercise the Warrants (the
        “Accelerated Exercise Period”). In the event the Warrants are
        not exercised within the Accelerated Exercise Period, they will expire
        and the Holder will no longer have any right to exercise the Warrants.
        Nothing in this Warrant Certificate will obligate the Company to file
        any registration statement registering the resale of the shares to be
        acquired by the holder on exercise of the warrants.

	7.	Transfer to Comply with
        the Securities Act. This Warrant and the Warrant Shares have not been
        registered under the Securities Act of 1933, as amended, (the "Act") and
        has been issued to the Holder for investment purposes and not with a view
        to the distribution of either the Warrant or the Warrant Shares. Neither
        this Warrant nor any of the Warrant Shares or any other security issued
        or issuable upon exercise of this Warrant may be sold, transferred, pledged
        or hypothecated in the absence of an effective registration statement
        under the Act relating to such security or an opinion of counsel reasonably
        satisfactory to the Company that registration is not required under the
        Act. Each certificate for the Warrant, the Warrant Shares and any other
        security issued or issuable upon exercise of this Warrant shall contain
        a legend on the face thereof, in form and substance satisfactory to counsel
        for the Company, setting forth the restrictions on transfer contained
        in this Section. The Holder understands that this Warrant and the stock
        purchasable hereunder constitute “restricted securities” under
        federal securities laws and acknowledges that Rule 144 of the Securities
        and Exchange Commission is not now, and may not in the future be, available
        for resales of this Warrant and/or the stock purchasable hereunder.

        All certificates representing the Warrant Shares will be endorsed with
        the following legend:

        “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN
        OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
        OF THE ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, TRANSFERRED,
        PLEDGED OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED
        UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE EXEMPT FROM SUCH REGISTRATION
        REQUIREMENTS.”

	8.	Payment of Taxes.
        The Company shall not be required to pay any tax or other charge imposed
        in connection with the exercise of this Warrant or a permissible transfer
        involved in the issuance of any certificate for shares issuable under
        this Warrant in the name other than that of the Holder, and in any such
        case, the Company shall not be required to issue or deliver any stock
        certificate until such tax or other charge has been paid or it has been
        established to the Company’s satisfaction that no such tax or other
        charge is due.

	9.	Notices. Any notice
        required or permitted hereunder shall be given in writing and shall be
        deemed effectively given upon, (a) by personal delivery or telecopy, or
        (ii) one business day after deposit with a nationally recognized overnight
        delivery service such as Federal Express, with postage and fees prepaid,
        addressed to each of the other parties thereunto entitled at the following
        addresses, or at such other addresses as a party may designate by written
        notice to each of the other parties hereto. COMPANY: Silverado
        Gold Mines Ltd., Attention: Garry L. Anselmo, President, Suite 505,
        1111 West Georgia Street, Vancouver, British Columbia, Canada V6E 4M3,
        fax: (604) 682-3519; HOLDER: At the address set forth above.

	10.	
      Governing Law. This Warrant shall be deemed
        to be a contract made under the laws of the Province of British Columbia
        and for all purposes shall be governed by and construed in accordance
        with the laws of such Province applicable to contracts to be made and
        performed entirely within such Province.

        

      

	SUBSCRIPTION FORM

       TO: SILVERADO GOLD MINES LTD., A British Columbia company (the
        “Company”)

        The undersigned (the “Investor”) hereby exercises the right
        to purchase and hereby subscribes for the number of common shares in the
        capital stock of SILVERADO GOLD MINES LTD. (the “Shares”) referred
        to in the Warrant Certificate surrendered herewith according to the terms
        conditions thereof and herewith makes payment by cash, certified check
        or bank draft of the purchase price in full for the said shares in accordance
        with the Warrant.

        The Investor represents and warrants to the Company that:

	(a)	the Investor has not offered or sold the Shares
      within the meaning of the United States Securities Act of 1933 (the “Securities
      Act”);
	(b)	the Investor is acquiring the Shares for its
      own account for investment, with no present intention of dividing my interest
      with others or of reselling or otherwise disposing of all or any portion
      of the same;
	(c)	the Investor does not intend any sale of the
      Shares either currently or after the passage of a fixed or determinable
      period of time or upon the occurrence or non-occurrence of any predetermined
      event or circumstance;
	(d)	the Investor has no present or contemplated agreement,
      undertaking, arrangement, obligation, indebtedness or commitment providing
      for or which is likely to compel a disposition of the Shares;
	(e)	the Investor is not aware of any circumstances
      presently in existence which are likely in the future to prompt a disposition
      of the Shares;
	(f)	the Shares were offered to the Investor in direct
      communication between the Investor and the Company and not through any advertisement
      of any kind;
	(g)	the Investor has the financial means to bear
      the economic risk of the investment which it hereby agrees to make.
	(h)	This subscription form will also confirm the
      Investor’s understanding as follows:
	 	(1)	the Shares have not been registered
        under the Securities Act or applicable state “Blue Sky” laws
        and, therefore, the Shares may not be resold, transferred or hypothecated
        without the registration of the Shares, or an opinion of counsel satisfactory
        to the Company to the effect that such registration is not necessary.

	 	(2)	Only the Company can take action to
        register the Shares under the Securities Act or applicable state securities
        law or to comply with the requirements for an exemption under the Securities
        Act or applicable state securities law, and the Company is under no obligation
        to do so, and does not propose to attempt to do so.

	 	(3)	The certificates representing the Shares
        will be endorsed with the following legend:

        “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN
        OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
        OF THE ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, TRANSFERRED,
        PLEDGED OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED
        UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE EXEMPT FROM SUCH REGISTRATION
        REQUIREMENTS.”

	 	(i)	the Investor is an “accredited
        investor”, as defined in Rule 501 of Regulation D of the Securities
        Act.

        Please deliver a warrant certificate in respect of the common shares referred
        to in the warrant certificate surrendered herewith but not presently subscribed
        for, to the Investor.

        DATED this _____ day of _______________ , _____.

	Number of Shares Subscribed For:	 	 	Signature of Investor:	 
	 	 	 	 	 
	Name of Investor (please print):	 	 	Address of Investor:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]