Document:

Exhibit 10.15

 Exhibit 10.15 
 FORM TIER 3 
 TRANSITION BONUS AGREEMENT 
 THIS BONUS AGREEMENT (“Agreement”) is made as of this             
day of                      2006 (the “Effective Date”), by and between
                        , an individual (“EMPLOYEE”), and Integral Systems, Inc., a Maryland corporation
(“INTEGRAL” or the “Company”), with reference to the following facts: 
 RECITALS 
  

	A.	INTEGRAL is exploring the possible sale of INTEGRAL and in connection therewith INTEGRAL has provided for the bonus payments described herein. 

  

	B.	INTEGRAL recognizes that such a process can be a distraction to EMPLOYEE and can cause EMPLOYEE to consider alternative employment opportunities and, therefore, the purpose of the
transition bonus described below is to incent the EMPLOYEE to remain employed at INTEGRAL through its sale date and remain employed or available for consulting for a period of time following INTEGRAL’s sale, in order to maintain the value of
INTEGRAL, maintain operations at INTEGRAL, continue to pursue new business, and facilitate a smooth transition subsequent to the Sale. 

 In
consideration of the mutual covenants herein contained, and in consideration of EMPLOYEE’s continued employment by INTEGRAL, EMPLOYEE and INTEGRAL agree as follows: 
  

	1.	Definitions 

 The following words and phrases as used in this
Agreement shall have the following meanings: 
 (a) “Base Salary” shall mean the higher of (i) the then current
base annual salary in effect for EMPLOYEE on the date of a Sale of INTEGRAL and (ii) the base annual salary of EMPLOYEE in effect immediately prior to the then current base annual salary. 
 (b) “Cause” for termination by the Company of the EMPLOYEE’s employment shall mean (i) the continued and material
failure of the EMPLOYEE to perform the duties of his or her position with the Company which continued and material failure adversely affects the Company or its business after notice and a reasonable opportunity to cure; provided, however that the
parties do not intend that this Subsection 1(b)(i) address: (x) circumstances that are outside of the EMPLOYEE’s control such as changes in general business or economic conditions or in the industry in which the Company operates; and/or
(y) war, acts of war, terrorism, or acts of terrorism (whether or not the foregoing are declared or undeclared and whether or not the foregoing takes place in the United States or outside the United States); (ii) material and willful
malfeasance by the EMPLOYEE in connection with the performance of the duties of his or her position with the Company that could in the good faith judgment of the Board (x) have a material adverse impact on the Company’s business (provided
that prior to termination for such reason, the Company shall give EMPLOYEE written notice of the acts constituting such cause, and the Company shall give EMPLOYEE a period of twenty (20) days within which to cease and correct such acts, and if
EMPLOYEE ceases and corrects such acts this Agreement shall remain in effect), (y) subject the Company to criminal penalties in excess of $50,000, or (z) result in the incarceration of any officer, director or employee of the Company;
(iii) after the date hereof, the EMPLOYEE’s being convicted of, or pleading guilty or nolo contendere to, a felony that adversely affects the Company or involves moral turpitude (i.e. an act that is base, vile and depraved);
(iv) fraud or embezzlement against the Company; (v) the willful failure (other than 

 
failure resulting from EMPLOYEE’s incapacity due to injury, physical or mental illness or disability) of the EMPLOYEE to obey in all material respects
any proper written direction of the Board to the EMPLOYEE, provided the written direction is consistent with the job-related responsibilities set forth in this Agreement (i.e. written direction clarifying the EMPLOYEE’s job-related
responsibilities hereunder without expanding such responsibilities beyond the scope hereof), and which has a material adverse effect on the Company (provided that prior to termination for such reason, the Company shall give EMPLOYEE written notice
of the acts constituting such cause, and the Company shall give EMPLOYEE a period of twenty (20) days within which to cease and correct such acts, and if EMPLOYEE ceases and corrects such acts this Agreement shall remain in effect); or
(vi) the willful and material violation by the EMPLOYEE of any agreement with the Company restricting competition against the Company, solicitation of customers or employees of the Company and/or disclosure of confidential or other information
with respect to the Company. In no event shall the Company be obligated to give EMPLOYEE notice and cure rights on more than two (2) occasions. 
 (c) “Sale” shall mean the first of the following events to occur: 
 (i) Any person or group (within the meaning of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than the Company or a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, becomes the beneficial owner (within the meaning
of Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities representing 50% or more of the combined voting power of the Company’s then-outstanding securities entitled generally to vote for the election of directors;

 (ii) The Company’s stockholders approve an agreement to merge or consolidate with another corporation (other than a
majority-controlled subsidiary of the Company) unless the Company’s stockholders immediately before the merger or consolidation are to own more than 50% of the combined voting power of the resulting entity’s voting securities entitled
generally to vote for the election of directors; 
 (iii) The Company’s stockholders approve an agreement (including,
without limitation, an agreement of liquidation) to sell or otherwise dispose of all or substantially all of the business or assets of the Company; or 
 However, no Sale shall be deemed to have occurred by a reason of (A) any event involving a transaction in which the EMPLOYEE or a group of persons or entities with whom or with which the EMPLOYEE acts in concert,
acquire(s), directly or indirectly, 50% or more of the combined voting power of the Company’s then-outstanding voting securities or the business or assets of the Company; or (B) any event involving or arising out of a proceeding under
Title 11 of the United States Code or the provisions of any future United States bankruptcy law, an assignment for the benefit of creditors or an insolvency proceeding under state or local law. 
 A Sale shall be deemed to occur, (I) with respect to a Sale pursuant to Section 1(c)(i) above, on the date any person or group
first becomes the beneficial owner, directly or indirectly, of securities representing 50% or more of the combined voting power of the Company’s then-outstanding securities entitled generally to vote for the election of directors, or (II) with
respect to a Sale pursuant to Sections 1(c)(ii) or (iii) above, on the date of stockholder approval. 
 This Agreement,
once triggered by a Sale event, shall apply with respect to that Sale event only and not with respect to any later Sale event. 
 (d)
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
  

 2 

 Other capitalized terms in this Agreement shall have the meanings provided herein.

  

	2.	Cash Transition Bonus. 

 2.1 Transition Bonus
Trigger. EMPLOYEE shall be entitled to receive a lump sum cash payment equal to                      Dollars
($                        ) (the “Transition Bonus”) provided EMPLOYEE fulfills the obligations of
this Agreement, including meeting the eligibility criteria set forth in Section 2.2 below. 
 2.2 Transition Bonus Eligibility.
EMPLOYEE shall be eligible to receive the Transition Bonus if either: 
 (a) The EMPLOYEE remains employed at INTEGRAL from
the Effective Date until the date that is one hundred twenty (120) days following the Sale (“Transition Period), or 
 (b) EMPLOYEE (i) remains employed at INTEGRAL from the Effective Date until the Sale date, (ii) is terminated by INTEGRAL or its successor or the acquirer prior to the end of the Transition Period other than as described in the
proviso of Section 4.1 below, and (iii) makes himself or herself available for consulting to INTEGRAL for no additional compensation for the remainder of the Transition Period. The amount of consulting shall not exceed twenty
(20) hours in any thirty (30) day period unless otherwise agreed to by the EMPLOYEE and the acquirer and the total amount of consulting shall not exceed eighty (80) hours. 
 2.3 Payment of Transition Bonus. INTEGRAL will pay the Transition Bonus to EMPLOYEE, if eligible, within ten (10) days after the expiration of
the Transition Period. 
  

	3	Miscellaneous. 

 3.1 Term of Agreement. The
term of this Agreement shall be effective until the earliest of: (a) 10 days following the end of the Transition Period, (b) 10 days following the end of any applicable consulting period under Section 2.2(b)(iii) and (c) INTEGRAL
is no longer actively seeking an acquirer as evidenced by a press release issued by INTEGRAL to that effect; provided, however, that if EMPLOYEE’s employment with INTEGRAL is terminated for any reason prior to a Sale or if EMPLOYEE is
terminated by INTEGRAL or its successor or acquirer for “Cause” or EMPLOYEE voluntarily terminates EMPLOYEE’s employment with INTEGRAL or its successor or acquirer at any time during the Transition Period, this Agreement shall expire
on the effective date of such termination and INTEGRAL shall have no further obligations under this Agreement. 
 3.2 Withholding.
INTEGRAL shall make such deductions, withholdings and other payments from all sums payable to EMPLOYEE under this Agreement that are required by law or as EMPLOYEE requests for taxes and other charges. 
 3.3 Assignment. This Agreement shall inure to the benefit of and shall be binding upon the successors and the assigns of INTEGRAL. This Agreement
is personal to EMPLOYEE and may not be assigned by EMPLOYEE. 
  

 3 

 3.4 Severability. If any provision of the Agreement shall be found invalid by any court of
competent jurisdiction, such findings shall not affect the validity of the other provisions hereof and the invalid provisions shall be deemed to have been severed herefrom. 
 3.5 Applicable Law. This Agreement is entered into and executed in the State of Maryland and shall be governed by the laws of such State without
regard to its conflict of laws provisions. 
 3.6 Integration. This Agreement constitutes the entire agreement among the parties and
supercedes any prior or contemporaneous understanding with respect to the subject matter hereunder. 
 3.7 Voluntary Agreement. The
EMPLOYEE represents that he or she has read this Agreement, that he or she understands all of its terms, that in executing this Agreement he or she does not rely and has not relied upon any representation or statements made by any of Company’s
agents, representatives, or attorneys with regard to the subject matter, basis, or effect of the Agreement, and that he or she enters into this Agreement voluntarily, of his or her own free will and with knowledge of its meaning and effect.

 3.8 Notices. For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered personally or mailed by U.S. registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt: 
  

	 	(i)	to the Company: 

 Integral Systems, Inc. 
 5000 Philadelphia Way 
 Lanham, Maryland
20706-4417 
 Attention: Board of Directors 
  

	 	(ii)	to the EMPLOYEE: 

 At the address then appearing on

 the employment records of the Company. 
 3.9 Dispute Resolution. 
 (a) Costs of Arbitration. If either party brings an
arbitration proceeding to enforce its rights under this Agreement, each party shall be responsible for its own expenses in preparing for and in trying the case, including, but not limited to, investigative costs, court costs and attorneys’
fees. 
 (b) Personal Jurisdiction. Both parties agree to submit to the jurisdiction and venue of the state courts in
the State of Maryland as to matters involving enforcement of an award in an arbitration proceeding. 
 (c) Arbitration.
ANY DISPUTE BETWEEN THE PARTIES HERETO ARISING UNDER OR RELATING TO THIS AGREEMENT SHALL BE RESOLVED IN ACCORDANCE 

  

 4 

 
WITH THE PROCEDURES OF THE AMERICAN ARBITRATION ASSOCIATION. ANY RESULTING HEARING SHALL BE HELD IN THE STATE OF MARYLAND. THE RESOLUTION OF ANY DISPUTE
ACHIEVED THROUGH SUCH ARBITRATION SHALL BE BINDING AND ENFORCEABLE BY A COURT OF COMPETENT JURISDICTION. 
 3.10 Validity. The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
 3.11 Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
set forth on the first page hereof. 
  

									
	Employer: INTEGRAL SYSTEMS, INC.	 		 	Employee:
					
	By:	 	  	 		 	By:	 	  
		 	(Signature)	 		 		 	(Signature)
					
		 	  	 		 		 	  
		 	(Typed or Printed name)	 		 		 	(Typed or Printed name)
					
	Title: 	 	  	 		 		 	

 Schedule of employees party to Transition Bonus Agreement (Tier 3) and related transition bonus amounts:

 Total of 27 employees with transition bonus amounts ranging from $7,500 to $25,000 and effective dates ranging from August 7, 2006 to
August 17, 2006. 
  

 5Silver Dragon Resources Inc.: Exhibit 4.1 - Prepared by TNT Filings Inc.

  

   

  
  SILVER DRAGON RESOURCES INC.

  SUBSCRIPTION FOR UNITS

  

 

  
  TO:                  
  SILVER DRAGON RESOURCES INC. (the "Corporation")

  
   

  
  The undersigned
  (the "Subscriber") hereby irrevocably subscribes for and agrees to purchase
  the number of units in the capital of the Corporation (the "Units") set forth
  below at $1.00 (USD) per Unit for the Aggregate Subscription Amount set forth
  below, each such Unit consisting of one common share of the Corporation (each
  a "Unit Share"), and 2 one-half of one (1/2) common share purchase warrants,
  upon and subject to the terms and conditions set forth in  the
  "Subscription Agreement" entitling the Subscriber to purchase one additional
  common share of the Corporation for every two Warrants exercised during a
  period of 24 months from the Closing Date. One whole Warrant shall be
  exercisable at $2.00 (USD) per common share and the other whole Warrant shall
  be exercisable at $5.00 (USD) per common share.

  
      

  	
      
      

                                                                                                          
      

      
      Full Legal Name of Subscriber (please print)

      
       

      
      By:     
      
                                                                                               
      

      
      Signature of Subscriber or its Authorized Representative

      
                                                                                                          
      

      
      Official Title or Capacity (please print)

      
                                                                                                          
      

      
      Name of Signatory (please print name of individual whose
      signature appears above if different than name of Subscriber)

      
                                                                                                          
      

      
      Subscriber's Address (including postal code)

      
                                                                                                          
      

      

                                                                                                          
      

      
      Telephone Number (including area code)

      
                                                                                                          
      

      
      e-mail Address

      
                                                                                                          
      

      
      Social Insurance No. or Federal Business No.
	
      
       

      
       
	
      
      

      Aggregate Subscription Amount:  $ 
                                       

      
       

	
      
       
	
      
       

	
      
       

      
       
	
      
       

      
      Number of Units subscribed for:  

      
       

      
                                                                                                     
      

      
       

	
      
       
	
      
       

	
      
       
	
      
       

      
      If the Subscriber
      is signing as agent for a principal
      (beneficial owner) and is not purchasing as a trustee or an agent for
      accounts fully managed by it, complete the following:

      
       

      
                                                                                                    
      

      
      (Name of Principal)

      
       

      
                                                                                                    
      

      
      (Principal's address)

      
      
                                                                                                    
      

	
      
       
	
      
       
	
      
       

	
      
      Register the Units as follows:

      
       

      
                                                                                                          
      

      
      Name

      
                                                                                                          
      

      
      Account reference, if applicable

      
       

      
                                                                                                          
      

      
      Address (including postal code)

      
       

      
      
                                                                                                          
      

      
      
                                                                                                          
      
	
      
       

      
       
	
      
      Deliver the Units as follows:

      

      
      □ Same as
      registered address, or 

      
                                                                                              
      

      
      Name

      
                                                                                              
      

      
      Account reference, if applicable

      
                                                                                              
      

      
      Contact Name

      
                                                                                              
      

      
      Address (including postal code)

      
                                                                                              
      

      
      Telephone Number (including area code)

	
      
       

  
  NUMBER 
  and type of securities of the Corporation held directly or
  indirectly by Subscriber                                                                           
    

  
  STATE 
  whether the Subscriber is an insider of the Corporation (please
  check one)           
  Yes:                        
            No: 
                               
      

  
  ACCEPTANCE: The Corporation hereby (i) accepts the
  above subscription on the terms and conditions contained in this Subscription
  Agreement and (ii) represents and warrants to the Subscriber that the
  representations and warranties made by the Corporation to the Agent in the
  Agency Agreement (as defined herein) are true and correct in all material
  respects as of the Closing Date (save and except as waived by the Agent) and
  the Subscriber shall have the benefit of such representations and warranties
  and shall be entitled to reply thereon. 
  

  	
   	 	
       
	
  SILVER DRAGON RESOURCES INC. 
  
    	 	
      
  
      
                                          
  , 2006

	 	 	 
	
      By:	 	   
      Subscription No:
      
	
      Authorized Signing Officer	 	 

  
   

  
  This is the first page of an agreement comprised of 12
  pages. 

  

  

   

  SUBSCRIPTION AGREEMENT

  
   

  
   

  
  SILVER DRAGON RESOURCES INC.

  
  INSTRUCTIONS FOR COMPLETION OF SUBSCRIPTION DOCUMENTS

  
   

  
  To All Subscribers for Units:

  
   

  
  I.          In connection with your subscription
  of                          units offered by Silver Dragon Resources Inc. (the
  "Company"), the following documents, which must be properly and fully
  completed, signed, and, where applicable, notarized:

  
       

  
  A.        Investor Suitability Questionnaire

  
   

  
  B.         Subscription Agreement and Investment Representation

  
   

  
  II.         Please return the requested number of copies of all
  documents to the address set forth below.  Failure to comply with the above
  will constitute an invalid Subscription and, if not corrected will result in
  the rejection of your Subscription request.

  
       

  
  III.       Certified checks, wire transfers or bank drafts
  should be in the amount of $______________ for the Units being purchased.  If
  less than the whole number of Units are being purchased, the certified check,
  wire transfer or bank draft should be in proportion to the percentage of the
  partial amount, may be made by the Company at its discretion.

  
       

  
  IV.       Send all documents and checks to the address set
  forth below:

  
       

  
                                      Silver Dragon Resources Inc.

  
                                      1121 Steeles Ave West, Suite 803

  
                                      Toronto, Ontario, Canada M2R 3W7

   

  Send all wire transfers to:

   

                                  
  Name of account: Silver Dragon Resources Inc.

                                  Bank:
  HSBC Bank of Canada

                                  Account
  No.:10162-056664-070

                                 
  Currency: USD

                                  ABA #
  021001088 Intermediary Bank 

                                 
  Address: 7398 Yonge Street, Vaughan, Ontario, Canada, L4J 8J2

                                  Phone:
  (905) 771-8727

                                  Fax:  
  (905) 771-8802

   

  V.       
  Upon acceptance by the Company, each Subscriber will receive an executed
  original of the Subscription Agreement as soon as practical after closing.

   

  
  

  12

  

  
 

  
  CONFIDENTIAL INVESTOR QUESTIONNAIRE

  INVESTOR
  IDENTIFICATION

   

  
  Securities regulations require the Company to identify
  investors by category.  Please initial the category, which
  applies to you in the space provided below.

  
   

  
  A)        The undersigned
  represents that I/we am (are) an accredited investor(s) as that term is
  defined in Rule 501 pursuant to Regulation D of the Securities Act of 1933, as
  amended (if no, then proceed to Section B of the this Confidential Investor
  Questionnaire):

  
   

  
                          1.         [              ]       
  As of the date of this questionnaire, the undersigned has not less than
  $1,000,000.00 liquid net worth (exclusive of home, home furnishings and
  personal automobile).

  
   

  
                         2.         [              ]       
  As of the date of this questionnaire, the undersigned has an individual income
  in excess of $200,000 in each of two most recent years or joint income with
  that person's spouse in excess of $300,000 in each those years and has a
  reasonable expectation of reaching the same income level in the current year.

  
   

  
                         3.        
  [              ]        As of the date of this
  questionnaire, the undersigned is a trustee (or are the trustees) of a trust:
  (i)  with total assets in excess of $5,000,000; (ii) not formed for the
  specific purpose of acquiring the securities offered; and (iii) whose purchase
  of the securities offered hereby is directed by an individual with such
  knowledge and experience in such business matters that such person is capable
  of evaluating the merits and risks of the prospective investment.

  
   

  
                          4.         [             ]        
  As of the date of this questionnaire, the undersigned is an entity in which
  all of the equity owners are accredited investors (each owner must complete
  and submit individual questionnaires).

  
   

  
                  B)        [           ]          I/we am
  (are) not an accredited investor(s) as that term is defined in Rule 501
  pursuant to Regulation D of the Securities Act of 1933, as amended.

  
   

  

 

  
  12

  

  

   

  
  TO BE PROVIDED BY ALL INVESTORS

  
   

  
  (Please Print or Type)

  
   

  Number of
  Units, $1.00 per Unit:                        _____________

   

  Total
  Investment Amount:          $_________________

   

   

  
  Purchaser Information:

   

  Name: 
  ________________________________________

   

  Federal Tax ID
  or Social Security Number:         _________________________

   

  Marital
  Status:   _____________                      Date of Birth:   
  _________________

   

  Citizen
  of:         _________________________________________

   

  Home/Business
  Address:________________________________________________

  
  (Street)

   

  
  __________________________________________________________________________________

  
  
  (City)                                                               
  (State)                                      (Zip)

   

  
  Co-Purchaser Information:

   

  Name: 
  ___________________________________________________________

   

  Federal Tax ID
  or Social Security Number:         ___________________________

   

  Marital
  Status:   _____________    Date of Birth:  ___________________________

   

  Citizen
  of:         ____________________________________________________________

   

  Home/Business
  Address: ___________________________________________________

  
  (Street)

   

  
  _____________________________________________________________________________________

  
  
   (City)                                                              
  (State)                                      (Zip)

  
   

  
   

  
  12

  

  

   

  Indicate
  Type of Ownership:

   

  	[          
      ]  Individual  	[          
      ]  Joint Tenants with Rights of Survivorship*
	[          
      ]  Tenants by the Entireties *	[          
      ]  Community Property *
	[          
      ]  Tenants in Common *	[          
      ]  Domestic Corporation
	[          
      ]  Foreign Corporation	[          
      ]  Foreign Person

   

  
  (*) Two or more signatures required

 

 

 

 

 

 

  
  12

  

 

SUBSCRIPTION AGREEMENT

 

THIS AGREEMENT made this ____ day of
February, 2006 by and between Silver Dragon Resources Inc., a Delaware
corporation (the "Issuer" or the "Company") and
_____________________________________________________ (the "Subscriber").

 

WHEREAS, Subscriber wishes to hereby
subscribe for ________________ units offered by Silver Dragon Resources Inc.
(the "Units") for a purchase price of $_______________ or $1.00 per Unit (the "Purchase Price"); and

 

WHEREAS, Issuer desires to sell the
Units to Subscriber, but only upon the terms and conditions hereinafter set
forth.

 

NOW, THEREFORE, in consideration of the
mutual promises and the representations, warranties, covenants and agreements
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

 

 

ARTICLE I

ISSUANCE OF UNITS

 

1.01     Subject
to the terms and conditions set forth in this Agreement, Issuer agrees to sell
and deliver to the Subscriber, and Subscriber agrees to acquire from the Issuer,
all upon the terms and conditions hereinafter set forth, the Units, free and
clear of all security interests, claims, liens and other encumbrances except as
may be set forth in this Agreement.

 

1.02     Each
Unit shall consist of one (1) common share of the
Company plus two (2) one-half of one (1/2) common share purchase warrants for
each common share purchased entitling the Subscriber to purchase one (1)
additional common share of the Company for every two (2) warrants exercised for
a period of 24 months from the date of Closing.  One warrant shall be
exercisable at $2.00 per common share and the other warrant shall be exercisable
at $5.00 per common share. The warrants shall not be cashless.  However, in the
event that a registration statement for the shares underlying the warrants is
not declared effective within one year of the Closing Date, the warrants shall
become cashless.

                                                                                

ARTICLE II

PRICE OF UNITS, SIZE OF OFFERING AND USE OF PROCEEDS

 

The Issuer will
sell a maximum of 20,000,000 Units for a total price of $20,000,000.00. The
Proceeds from the offering of Units contemplated herein shall be used for the
acquisition and development of the Cerros las Minitas property in Durango,
Mexico, development of the Sino Top properties in the Erbahuo silver district in
China, corporate administration, subsidiary financing and other general
corporate matters. 

 

  
  12

  

 

ARTICLE III

SUBSCRIPTION PRICE

 

3.01     
Consideration.  In consideration of the issuance and delivery by the Issuer
of the Units as hereinafter set forth:

 

(a)        The Subscriber shall deliver to the Issuer the sum of
____________________ ($_____________), by wire transfer, certified cheque or by
bank draft, on or before the Closing as that term is defined in Section 4.01 of
this Agreement.

 

ARTICLE IV

CLOSING

 

4.01     Date and Place of Closing.  The closing of the
transaction contemplated by this Agreement (the "Closing") shall occur at 1121 Steeles Ave West, Suite 803, Toronto, Ontario on or before February 24, 2006
(the "Closing Date"), at 5:00 P.M. Eastern Standard Time.  The Issuer shall have
the right to extend the Closing Date at its discretion.

 

4.02     
Documents at Closing.  At the Closing, Issuer shall deliver to the Issuer’s
transfer agent an Issuance Resolution authorizing the issuance of the Shares and
such other documents as may be reasonably required by Subscriber’s counsel.  At
the Closing, the Subscriber shall deliver $__________________ (the "Subscription
Amount") to the Issuer in the manner set forth in sub-section 3.01(a) of this
Agreement, and such other documents as may be reasonably required by Issuer’s
counsel.

 

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF ISSUER

 

5.01     
Representations and Warranties of Issuer.  In order to induce the Subscriber
to enter into this Agreement, the Issuer represents, warrants and covenants to
the Subscriber that all the items contained in this Article are true and
correct.

 

5.02     
Organization and Good Standing.  The Issuer is duly organized, validly
existing and in good standing under the laws of the State of Delaware, Country
of United States.  The Issuer has all requisite power to carry on its business
as now conducted by it and to own and operate its assets as now owned and
operated by it.  The Issuer is conducting and has in the past conducted its
business in accordance with all applicable laws, the violation of which would
affect the property or business of the Issuer.

 

5.03     
Capacity and Authority.  The Issuer has full legal power and authority to
enter into this Agreement, to make the representations, warranties and covenants
contained herein and to cause the transactions contemplated hereby to be
consummated, and no prior order, approval or decree of any court, agency or
other governmental body is required with respect thereto.  The Issuer has full
legal right, power and authority to convey the Shares free and clear of all
liens, charges, encumbrances, claims and demands of every kind.  The Issuer
represents, warrants and covenants that all actions in contemplation of this
transaction are not in conflict with the Issuer’s Certification or its Bylaws,
if any.

   

  
  12

  

 

5.04     
Encumbrances and Binding Effect.  This Agreement is a valid and binding
obligation of the Issuer, enforceable in accordance with its terms, subject to
application of bankruptcy, insolvency, reorganization and moratorium laws and
other generally applicable laws affecting enforcement of creditor’s rights.  The
execution and delivery by the Issuer of this Agreement and the performance
thereof will not result in any violation of and will not conflict with, or
result in a breach of any of the terms of, or constitute a default under any
provision of any state or federal law to which the Issuer is subject, any
agreement of the Issuer, or of any mortgage, indenture, agreement, instrument,
judgment, decree, order, rule or regulation or other restriction to which the
Issuer is a party or by which any of its property is bound.

 

5.05     Sale of the Shares.

 

(a)        Subscriber has been advised that (i) the Units have
not been registered under the Securities Act of 1933, as amended (the "Act"),
(ii) such securities may need to be held indefinitely, and Subscriber must
continue to bear the economic risk of the investment in such securities unless
they are subsequently registered under the Act or an exemption from such
registration is available, (iii) there is not and may never be a public market
for such securities, (iv) when and if such securities, if applicable, may be
disposed of without registration in reliance on Rule 144 promulgated under the
Act, such disposition can be made only in limited amounts in accordance with the
terms and conditions of such Rule, (v) if the Rule 144 exemption is not
available, public sale without registration will require compliance with
Regulation A or some other exemption under the Act, and (vi) a restrictive
legend in the following form shall be placed on the certificates representing
such securities if applicable:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") AND HAVE NOT
BEEN REGISTERED PURSUANT TO ANY STATE BLUE SKY LAWS. FURTHER THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND QUALIFICATION UNDER THE
STATE ACTS OR EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS
(INCLUDING, IN THE CASE OF THE ACT, THE EXEMPTION AFFORDED BY RULE 144).

 

5.06     
Compliance with Applicable Laws.  

 

(a)        The operation of the Issuer has not and does not
violate any applicable law or governmental regulation.  Without limiting the
generality of the foregoing, the Issuer is in compliance with all laws, rules
and regulations, including rules and regulations promulgated by the United
States, the State of Delaware, and any other state or local authority or agency
relating to the operation of the business of the Issuer.

   

  
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(b)        There are no commitments to or agreements with any
governmental authority or agency affecting the Units or the Issuer, which have
not been disclosed by the Issuer to the Subscriber in writing.

 

5.07     
Contracts and Commitments.  There has not been any default in any obligation
to be performed by the issuer under any contract, license, commitment or
agreement which default could adversely affect the business or property of the
Issuer, and the Issuer has not waived any right under any such contract,
commitment or agreement so as to adversely affect the business or property of
the Issuer.

 

5.08     No
Material Liabilities.  There are no material liabilities on the books of the
Issuer except as disclosed in the financial statements and no undisclosed or
contingent liabilities.

 

5.09     
Disclosure.  Neither this Agreement nor any exhibit, list, or schedule
hereto, nor any written statement or certificate furnished to the Subscriber
pursuant hereto or in connection with the transaction herein contemplated
contains or will contain any untrue statement of a material fact, will omit to
state a material fact necessary in order to make the statements contained herein
or therein not misleading.  There presently exists no fact, which materially
adversely affects or in the future may materially adversely affect the Units,
which fact has not been disclosed herein or in the exhibits, lists and schedules
provided for herein.

 

5.10     
Shares of Stock.  The Issuer is authorized to issue 150,000,000 shares of
Common Stock, $0.0001 par value, of which 35,670,533 shares were issued and
outstanding prior to this Offering. All shares of stock of the Issuer, including
the Shares underlying the Units, are validly issued and nonassessable.

 

5.11     The Issuer shall file to register the shares of the
Common Stock and Warrants issued within forty-five (45) days of the Closing Date
(the "Registration Statement").  If the Registration Statement is not filed as
mentioned or declared effective within one-hundred and eighty (180) days
following  the Closing Date, then cash delay payments equal to 0.5% of the
actual Subscription Amount per month shall apply for the first 3 months and 1.0%
per month thereafter.

 

5.12     From the Closing Date up to and including the date the
Registration Statement is declared effective, in the event of any issuances of
Preferred Shares, Common Stock or options, warrants or securities convertible
into Common Stock at a price per share of Common Stock less than the Purchase
Price, the Purchase Price will be reduced dollar-for-dollar. Notwithstanding the
foregoing, shares and warrants issued pursuant to Rule 144, employee stock
options and/or warrants, warrants for commercial banks and equipment lessors,
shares, options or warrants issued pursuant to strategic alliances and/or
acquisitions approved by the Board of the Issuer will be excluded from this
provision.  Any shares issued to officers, directors and employees of the Issuer
may be included in the Registration Statement.

 

  

  
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ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF SUBSCRIBER

 

6.01     Lack
of Liquidity for the Shares.  The Subscriber:

 

(a)        Acknowledges that the Units have not been registered
pursuant to the Act or the similar laws of any state of the United States or
pursuant to the laws of any other country,, and may not be offered or sold,
except in compliance with the registration requirements of the Securities Act or
an available exemption therefrom; and

 

6.02     
Representations and Warranties of Subscriber.  In order to induce the Issuer
to enter into this Agreement, the Subscriber represents and warrants to the
Issuer the items of this Article.

 

6.03     
Organization and Good Standing. Subscriber is:

 

(a)        If a corporation, duly organized, validly existing and
in good standing and has all requisite power to carry on its business as now
conducted by it and to own and operate its assets as now owned and operated by
it; or

 

(b)        If an individual, is an accredited investor(s) as that
term is defined in Rule 501 pursuant to Regulation D of the Securities Act of
1933, as amended.

 

6.04     
Capacity and Authority.  The Subscriber has full legal power and authority
to enter into this Agreement, to make the representations, warranties and
covenants contained herein and to cause the transactions contemplated hereby to
be consummated, and no prior order, approval or decree of any court, agency or
other governmental body, whether federal, state or local is required with
respect thereto.

 

6.05     
Encumbrances and Binding Effect.  This Agreement is a valid and binding
obligation of the Subscriber, enforceable in accordance with its terms, subject
to application of bankruptcy, insolvency, reorganization and moratorium laws and
other generally applicable laws affecting enforcement of creditor’s rights.  The
execution and delivery by the Subscriber of this Agreement and the performance
thereof will not result in any violation of and will not conflict with, or
result in a breach of any of the terms of, or constitute a default under any
provision of any state, provincial or federal law to which the Subscriber is
subject, any agreement of the Subscriber, or of any mortgage, indenture,
agreement, instrument, judgment, decree, order, rule or regulation or other
restriction to which the Subscriber is a party or by which any of their property
is bound.

 

6.06     
Brokerage Fees.  The Subscriber has not incurred any liability for brokerage
fees, finder’s fees, agent’s commissions or other similar forms of compensation
in connection with this Agreement or the transactions contemplated hereby.

 

6.07     
Access to Information.  Subscriber has had access to or been furnished with
the following information:

 

  
  12

  

 

(a)        All material books and records of the Issuer;

 

(b)        All material contracts and documents relating to the
Issuer and the proposed purchase of the Shares; and

 

(c)        An opportunity to question the appropriate executive
officers of the Issuer about all material aspects of the Issuer and the business
of the Issuer.

 

ARTICLE VII

MISCELLANEOUS

 

7.01     
Notices.  Any notices or other communications required or permitted
hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, or delivered by hand or by messenger, addressed to the
appropriate address set forth below or to such other addresses as shall have
been furnished in writing to the party initiating the notice or communication. 
Any notice or other communication so addressed and mailed, postage prepaid, by
registered or certified mail (in each case, with return receipt requested) shall
be deemed to be delivered and given when received by the addressee. Any notice
so addressed and otherwise delivered shall be deemed to be given five (5)
business days after mailing.

 

7.02     
Governing Law.  This Agreement shall be governed by, and construed and
enforced in accordance with contracts entered into and wholly performed within
the Province of Ontario, without giving effect to conflict of laws principles
thereof, and in any action to enforce or interpret or arising under any of the
provisions of this Agreement, the parties expressly agree to submit to the
jurisdiction of any Federal or Provincial court sitting in Toronto, Ontario.

 

7.03     
Severability.  If any provision of this Agreement is held by a court of
competent jurisdiction to be contrary to law, the remaining provisions of this
Agreement will remain in full force and effect.

 

7.04     
Non-Waiver.  The failure of a party to enforce the provisions of this
Agreement or the rights granted hereunder on any occasion shall not operate as a
waiver of such provisions or rights for future occasions.

 

7.05     
Section Headings.  The section headings appear only as a matter of
convenience and shall not affect the construction of the Agreement.

 

7.06     
Entire Agreement and Amendments.  This Agreement, including any schedules
and exhibits, contains the entire understanding of the Subscriber and the
Issuer, and there are no representations, understandings, or agreements, oral or
otherwise, except as stated herein.  This Agreement may not be amended except by
a writing signed by all parties hereto.

 

7.07     
Counterparts.  This Agreement may be executed in counterparts, each of which
when so executed and delivered, shall constitute a complete and original
instrument but all of which taken together shall constitute one and the same
agreement, and it shall not be necessary when making proof of this Agreement or
any counterpart thereof to account for any other counterpart.

   

  
  
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7.08     
Facsimile An Original.  A facsimile of this Agreement shall be deemed to be
an original for all purposes.

 

7.09     
Addresses.  All notices and other correspondence with respect hereto shall
be sent to the Subscriber or the Issuer at the following addresses:

 

            To
Subscriber:                          At the address attached to the Subscription
Agreement  

 

            To Issuer:                                  Silver Dragon Resources Inc.

1121 Steeles Ave West

Suite 803

Toronto, Ontario M2R 3W7

Fax:  416-661-9510

 

7.10     
Execution of Additional Documents.  The parties hereto agree that they will
promptly execute any and all further documents necessary and/or appropriate for
the consummation of this Agreement according to its terms and conditions.

 

IN WITNESS
WHEREOF, this Agreement has been executed and delivered on the day and year
first hereinabove written.

 

Agreed and accepted

this  ____ day of February 2006.

  	Subscriber 
      –
	 
	 
	Subscriber's Signature
	 
	Issuer
	 
	Silver Dragon Resources Inc.
	 
	Per:
	Marc Hazout – President and
      C.E.O

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