Document:

EX 10.2

    EXHIBIT
      10.2

    

    SILVER
      RESERVE CORP.

    

    2006
      Stock Option Plan

    Adopted:
      April 20, 2006

    Approved
      By Stockholders: April 20, 2006

    Termination
      Date: April 20, 2016 [10 years after date of adoption]

    

    

    1.
      PURPOSES.

    

    (a)
      Eligible Stock Award Recipients. The persons eligible to receive Stock Awards
      are the Employees, Directors and Consultants of the Company and its
      Affiliates.

    

    (b)
      Available Stock Awards. The purpose of the Plan is to provide a means by which
      eligible recipients of Stock Awards may be given an opportunity to benefit
      from
      increases in value of the Common Stock through the granting of the following
      Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options,
      (iii) stock bonuses, and (iv) rights to acquire restricted stock.

    

    (c)
      General Purpose. The Company, by means of the Plan, seeks to retain the services
      of the group of persons eligible to receive Stock Awards, to secure and retain
      the services of new members of this group and to provide incentives for such
      persons to exert maximum efforts for the success of the Company and its
      Affiliates.

    

    2.
      DEFINITIONS.

    

    (a)
      "Affiliate" means any parent corporation or subsidiary corporation of the
      Company, whether now or hereafter existing, as those terms are defined in
      Sections 424(e) and (f), respectively, of the Code.

    

    (b)
      "Board" means the Board of Directors of the Company.

    

    (c)
      "Code" means the Internal Revenue Code of 1986, as amended.

    

    (d)
      "Committee" means a committee of one or more members of the Board appointed
      by
      the Board in accordance with Section 3(c).

    

    (e)
      "Common Stock" means the common stock of the Company.

    

    (f)
      "Company" means SILVER RESERVE CORP., a Delaware corporation.

      
        
           

        

        
            

          
            

          

        

        
           

        

      

    (g)
      "Consultant" means any person, including an advisor, (i) engaged by the Company
      or an Affiliate to render consulting or advisory services and who is compensated
      for such services or (ii) who is a member of the Board of Directors of an
      Affiliate. However, the term "Consultant" shall not include either Directors
      who
      are not compensated by the Company for their services as Directors or Directors
      who are merely paid a director's fee by the Company for their services as
      Directors.

    

    (h)
      "Continuous Service" means that the Participant's service with the Company
      or an
      Affiliate, whether as an Employee, Director or Consultant, is not interrupted
      or
      terminated. The Participant's Continuous Service shall not be deemed to have
      terminated merely because of a change in the capacity in which the Participant
      renders service to the Company or an Affiliate as an Employee, Consultant or
      Director or a change in the entity for which the Participant renders such
      service, provided that there is no interruption or termination of the
      Participant's service with the Company or an Affiliate. For example, a change
      in
      status from an Employee of the Company to a Consultant of an Affiliate or a
      Director will not constitute an interruption of Continuous Service. The Board
      or
      the chief executive officer of the Company, in that party's sole discretion,
      may
      determine whether Continuous Service shall be considered interrupted in the
      case
      of any leave of absence approved by that party, including sick leave, military
      leave or any other personal leave.

    

    (i)
      "Corporate Transaction" means the occurrence, in a single transaction or in
      a
      series of related transactions, of any one or more of the following
      events:

    

    (i)
      a
      sale, lease, licenseor other disposition of all or substantially all of the
      consolidated assets of the Company and its Subsidiaries;

    

    (ii)
      a
      sale or other disposition of at least ninety percent (90%) of the outstanding
      securities of the Company;

    

    (iii)
      a
      merger, consolidation or similar transaction following which the Company is
      not
      the surviving corporation; or

    

    (iv)
      a
      merger, consolidation or similar transaction following which the Company is
      the
      surviving corporation but the shares of Common Stock outstanding immediately
      preceding the merger, consolidation or similar transaction are converted or
      exchanged by virtue of the merger, consolidation or similar transaction into
      other property, whether in the form of securities, cash or
      otherwise.

    

    (j)
      "Covered Employee" means the chief executive officer and the four (4) other
      highest compensated officers of the Company for whom total compensation
      is

    
      
        
           

        

        
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    required
      to be reported to stockholders under the Exchange Act, as determined for
      purposes of Section 162(m) of the Code.

    

    (k)
      "Director" means a member of the Board of Directors of the Company.

    

    (l)
      "Disability" means the permanent and total disability of a person within the
      meaning of Section 22(e)(3) of the Code.

    

    (m)
      "Employee" means any person employed by the Company or an Affiliate. Mere
      service as a Director or payment of a director's fee by the Company or an
      Affiliate shall not be sufficient to constitute "employment" by the Company
      or
      an Affiliate.

    

    (n)
      "Exchange Act" means the Securities Exchange Act of 1934, as
      amended.

    

    (o)
      "Fair
      Market Value" means, as of any date, the value of the Common Stock determined
      as
      follows:

    

    (i)
      If
      the Common Stock is listed on any established stock exchange or traded on the
      Over-The-Counter Bulletin Board, the Nasdaq National Market, the Nasdaq SmallCap
      Market or the American Stock Exchange, the Fair Market Value of a share of
      Common Stock shall be the closing sales price for such stock (or the closing
      bid, if no sales were reported) as quoted on such exchange or market (or the
      exchange or market with the greatest volume of trading in the Common Stock)
      on
      the last market trading day prior to the day of determination, as reported
      in
      The Wall Street Journalor such other source as the Board deems
      reliable.

    

    (ii)
      In
      the absence of such markets for the Common Stock, the Fair Market Value shall
      be
      determined in good faith by the Board.

    

    (p)
      "Incentive Stock Option" means an Option intended to qualify as an incentive
      stock option within the meaning of Section 422 of the Code and the regulations
      promulgated thereunder.

    

    (q)
      "Non-Employee Director"means a Director who either (i) is not a current Employee
      or Officer of the Company or its parent or a subsidiary, does not receive
      compensation (directly or indirectly) from the Company or its parent or a
      subsidiary for services rendered as a consultant or in any capacity other than
      as a Director (except for an amount as to which disclosure would not be required
      under Item 404(a) of Regulation S-K promulgated pursuant to the Securities
      Act
      ("Regulation S-K")), does not possess an interest in any other transaction
      as to
      which disclosure would be required under Item 404(a) of Regulation S-K and
      is
      not engaged in a business relationship as to which disclosure would be
      required

      
        
           

        

        
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    under
      Item 404(b) of Regulation S-K; or (ii) is otherwise considered a "non-employee
      director" for purposes of Rule 16b-3.

    

    (r)
      "Nonstatutory Stock Option" means an Option not intended to qualify as an
      Incentive Stock Option.

    

    (s)
      "Officer" means a person who is an officer of the Company within the meaning
      of
      Section 16 of the Exchange Act and the rules and regulations promulgated
      thereunder.

    

    (t)
      "Option" means an Incentive Stock Option or a Nonstatutory Stock Option granted
      pursuant to the Plan.

    

    (u)
      "Option Agreement" means a written agreement between the Company and an
      Optionholder evidencing the terms and conditions of an individual Option grant.
      Each Option Agreement shall be subject to the terms and conditions of the
      Plan.

    

    (v)
      "Optionholder" means a person to whom an Option is granted pursuant to the
      Plan
      or, if applicable, such other person who holds an outstanding
      Option.

    

    (w)
      "Outside Director" means a Director who either (i) is not a current employee
      of
      the Company or an "affiliated corporation" (within the meaning of Treasury
      Regulations promulgated under Section 162(m) of the Code), is not a former
      employee of the Company or an "affiliated corporation" receiving compensation
      for prior services (other than benefits under a tax qualified pension plan),
      was
      not an officer of the Company or an "affiliated corporation" at any time and
      is
      not currently receiving direct or indirect remuneration from the Company or
      an
      "affiliated corporation" for services in any capacity other than as a Director
      or (ii) is otherwise considered an "outside director" for purposes of Section
      162(m) of the Code.

    

    (x)
      "Participant" means a person to whom a Stock Award is granted pursuant to the
      Plan or, if applicable, such other person who holds an outstanding Stock
      Award.

    

    (y)
      "Plan" means this ABC Corporation 2000 Equity Incentive Plan.

    

    (z)
      "Rule
      16b-3" means Rule 16b-3 promulgated under the Exchange Act or any successor
      to
      Rule 16b-3, as in effect from time to time.

    

    (aa)
      "Securities Act" means the Securities Act of 1933, as amended.

    
      
        
           

        

        
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    (bb)
      "Stock Award" means any right granted under the Plan, including an Option,
      a
      stock bonus, and a right to acquire restricted stock.

    

    (cc)
      "Stock Award Agreement" means a written agreement between the Company and a
      holder of a Stock Award evidencing the terms and conditions of an individual
      Stock Award grant. Each Stock Award Agreement shall be subject to the terms
      and
      conditions of the Plan.

    

    (dd)
      "Ten
      Percent Stockholder" means a person who Owns (or is deemed to Own pursuant
      to
      Section 424(d) of the Code) stock possessing more than ten percent (10%) of
      the
      total combined voting power of all classes of stock of the Company or of any
      of
      its Affiliates.

    

    3.
      ADMINISTRATION. 

    

    (a)
      Administration by Board. The Board shall administer the Plan unless and until
      the Board delegates administration to a Committee, as provided in Section
      3(c).

    

    (b)
      Powers of Board. The Board shall have the power, subject to, and within the
      limitations of, the express provisions of the Plan:

    

    (i)
      To
      determine from time to time which of the persons eligible under the Plan shall
      be granted Stock Awards; when and how each Stock Award shall be granted; what
      type or combination of types of Stock Award shall be granted; the provisions
      of
      each Stock Award granted (which need not be identical), including the time
      or
      times when a person shall be permitted to receive Common Stock pursuant to
      a
      Stock Award; and the number of shares of Common Stock with respect to which
      a
      Stock Award shall be granted to each such person.

    

    (ii)
      To
      construe and interpret the Plan and Stock Awards granted under it, and to
      establish, amend and revoke rules and regulations for its administration. The
      Board, in the exercise of this power, may correct any defect, omission or
      inconsistency in the Plan or in any Stock Award Agreement, in a manner and
      to
      the extent it shall deem necessary or expedient to make the Plan fully
      effective.

    

    (iii)
      To
      amend the Plan or a Stock Award as provided in Section 12. 

    

    (iv)
      To
      terminate or suspend the Plan as provided in Section 13.

    

    (v)
      Generally, to exercise such powers and to perform such acts as the Board deems
      necessary or expedient to promote the best interests of the Company which are
      not in conflict with the provisions of the Plan.

    
      
        
           

        

        
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    (c)
      Delegation to Committee.

    

    (i)
      General. The Board may delegate administration of the Plan to a Committee or
      Committees of one (1) or more members of the Board, and the term "Committee"
      shall apply to any person or persons to whom such authority has been delegated.
      If administration is delegated to a Committee, the Committee shall have, in
      connection with the administration of the Plan, the powers theretofore possessed
      by the Board, including the power to delegate to a subcommittee any of the
      administrative powers the Committee is authorized to exercise (and references
      in
      this Plan to the Board shall thereafter be to the Committee or subcommittee),
      subject, however, to such resolutions, not inconsistent with the provisions
      of
      the Plan, as may be adopted from time to time by the Board. The Board may
      abolish the Committee at any time and revest in the Board the administration
      of
      the Plan.

    

    (ii)
      Committee Composition when Common Stock is Publicly Traded. At such time as
      the
      Common Stock is publicly traded, in the discretion of the Board, a Committee
      may
      consist solely of two or more Outside Directors, in accordance with Section
      162(m) of the Code, and/or solely of two or more Non-Employee Directors, in
      accordance with Rule 16b-3. Within the scope of such authority, the Board or
      the
      Committee may (1) delegate to a committee of one or more members of the Board
      who are not Outside Directors the authority to grant Stock Awards to eligible
      persons who are either (a) not then Covered Employees and are not expected
      to be
      Covered Employees at the time of recognition of income resulting from such
      Stock
      Award or (b) not persons with respect to whom the Company wishes to comply
      with
      Section 162(m) of the Code and/or) (2) delegate to a committee of one or more
      members of the Board who are not Non-Employee Directors the authority to grant
      Stock Awards to eligible persons who are not then subject to Section16 of the
      Exchange Act.

    

    (d)
      Effect of Board's Decision. All determinations, interpretations and
      constructions made by the Board in good faith shall not be subject to review
      by
      any person and shall be final, binding and conclusive on all
      persons.

    

    4.
      SHARES
      SUBJECT TO THE PLAN. 

    

    (a)
      Share
      Reserve. Subject to the provisions of Section 11 relating to adjustments upon
      changes in Common Stock, the Common Stock that may be issued pursuant to Stock
      Awards shall not exceed in the aggregate Five Million (5,000,000) shares of
      Common Stock.

    

    (b)
      Evergreen Share Reserve Increase.

    
      
        
           

        

        
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    (i)
      Notwithstanding Section 4(a) hereof and subject to the provisions of Section
      11
      relating to adjustments upon changes in Common Stock, on the day of each annual
      meeting of stockholders of the Company (the "Calculation Date") for a period
      of
      nine (9) years, commencing with the annual meeting of stockholders in 2006,
      the
      aggregate number of shares of Common Stock that is available for issuance under
      the Plan shall automatically be increased by that number of shares equal to
      the
      least of (1) two percent (2%) of the Diluted Shares Outstanding; (2) Three
      Hundred Thousand (300,000) shares of Common Stock; or (3) such lesser number
      of
      shares as determined by the Board.

    

    (ii)
      "Diluted Shares Outstanding" shall mean, as of any date, (1) the number of
      outstanding shares of Common Stock of the Company on such Calculation Date,
      plus
      (2) the number of shares of Common Stock issuable upon such Calculation Date
      assuming the conversion of all outstanding Preferred Stock and convertible
      notes, plus (3) the additional number of dilutive Common Stock equivalent shares
      outstanding as the result of any options or warrants outstanding during the
      fiscal year, calculated using the treasury stock method.

    

    (c)
      Reversion of Shares to the Share Reserve. If any Stock Award shall for any
      reason expire or otherwise terminate, in whole or in part, without having been
      exercised in full, the shares of Common Stock not acquired under such Stock
      Award shall revert to and again become available for issuance under the
      Plan.

    

    (d)
      Source of Shares. The shares of Common Stock subject to the Plan may be unissued
      shares or reacquired shares, bought on the market or otherwise.

    

    5.
      ELIGIBILITY.

    

    (a)
      Eligibility for Specific Stock Awards. Incentive Stock Options may be granted
      only to Employees. Stock Awards other than Incentive Stock Options may be
      granted to Employees, Directors and Consultants.

    

    (b)
      Ten
      Percent Stockholders. 

    

    A
      Ten
      Percent Stockholder shall not be granted an Incentive Stock Option unless the
      exercise price of such Option is at least one hundred ten percent (110%) of
      the
      Fair Market Value of the Common Stock at the date of grant and the Option is
      not
      exercisable after the expiration of five (5) years from the date of
      grant.

    

    (c)
      Section 162(m) Limitation. Subject to the provisions of Section 11(a) relating
      to adjustments upon changes in the shares of Common Stock, no Employee shall
      be
      eligible to be granted Options covering more than Eight Hundred Thousand
      (800,000) shares of Common Stock during any calendar year.

    
      
        
           

        

        
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    (d)
      Consultants.

    

    A
      Consultant shall not be eligible for the grant of a Stock Award if, at the
      time
      of grant, a Form S-8 Registration Statement under the Securities Act ("Form
      S-8") is not available to register either the offer or the sale of the Company's
      securities to such Consultant because of the nature of the services that the
      Consultant is providing to the Company, or because the Consultant is not a
      natural person, or as otherwise provided by the rules governing the use of
      Form
      S-8, unless the Company determines both (i) that such grant (A) shall be
      registered in another manner under the Securities Act (e.g., on a Form S-3
      Registration Statement) or (B) does not require registration under the
      Securities Act in order to comply with the requirements of the Securities Act,
      if applicable, and (ii) that such grant complies with the securities laws of
      all
      other relevant jurisdictions. 

    

    6.
      OPTION
      PROVISIONS.

    

    Each
      Option shall be in such form and shall contain such terms and conditions as
      the
      Board shall deem appropriate. All Options shall be separately designated
      Incentive Stock Options or Nonstatutory Stock Options at the time of grant,
      and,
      if certificates are issued, a separate certificate or certificates will be
      issued for shares of Common Stock purchased on exercise of each type of Option.
      The provisions of separate Options need not be identical, but each Option shall
      include (through incorporation of provisions hereof by reference in the Option
      or otherwise) the substance of each of the following provisions:

    

    (a)
      Term.
      Subject to the provisions of Section 5(b) regarding Ten Percent Stockholders,
      no
      Incentive Stock Option shall be exercisable after the expiration of ten (10)
      years from the date it was granted.

    

    (b)
      Exercise Price of an Incentive Stock Option. Subject to the provisions of
      Section 5(b) regarding Ten Percent Stockholders, the exercise price of each
      Incentive Stock Option shall be not less than one hundred percent (100%) of
      the
      Fair Market Value of the Common Stock subject to the Option on the date the
      Option is granted. Notwithstanding the foregoing, an Incentive Stock Option
      may
      be granted with an exercise price lower than that set forth in the preceding
      sentence if such Option is granted pursuant to an assumption or substitution
      for
      another option in a manner satisfying the provisions of Section 424(a) of the
      Code.

    

    (c)
      Exercise Price of a Nonstatutory Stock Option. The exercise price of each
      Nonstatutory Stock Option shall be not less than eighty-five percent (85%)
      of
      the Fair Market Value of the Common Stock subject to the Option on the date
      the
      Option is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option
      may be granted with an exercise price lower than that set forth in the
      preceding

    
      
        
           

        

        
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    sentence
      if such Option is granted pursuant to an assumption or substitution for another
      option in a manner satisfying the provisions of Section 424(a) of the
      Code.

    

    (d)
      Consideration. The purchase price of Common Stock acquired pursuant to an Option
      shall be paid, to the extent permitted by applicable statutes and regulations,
      either (i) in cash at the time the Option is exercised or (ii) at the discretion
      of the Board at the time of the grant of the Option (or subsequently in the
      case
      of a Nonstatutory Stock Option) (1) by delivery to the Company of other Common
      Stock, (2) according to a deferred payment or other similar arrangement with
      the
      Optionholder, or (3) in any other form of legal consideration that may be
      acceptable to the Board. Unless otherwise specifically provided in the Option,
      the purchase price of Common Stock acquired pursuant to an Option that is paid
      by delivery to the Company of other Common Stock acquired, directly or
      indirectly from the Company, shall be paid only by shares of the Common Stock
      of
      the Company that have been held for more than six (6) months (or such longer
      or
      shorter period of time required to avoid a charge to earnings for financial
      accounting purposes). At any time that the Company is incorporated in Delaware,
      payment of the Common Stock's "par value," as defined in the Delaware General
      Corporation Law, shall not be made by deferred payment.

    

    In
      the
      case of any deferred payment arrangement, interest shall be compounded at least
      annually and shall be charged at the minimum rate of interest necessary to
      avoid
      the treatment as interest, under any applicable provisions of the Code, of
      any
      amounts other than amounts stated to be interest under the deferred payment
      arrangement. 

    

    (e)
      Transferability of an Incentive Stock Option. An Incentive Stock Option shall
      not be transferable except by will or by the laws of descent and distribution
      and shall be exercisable during the lifetime of the Optionholder only by the
      Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering
      written notice to the Company, in a form satisfactory to the Company, designate
      a third party who, in the event of the death of the Optionholder, shall
      thereafter be entitled to exercise the Option.

    

    (f)
      Transferability of a Nonstatutory Stock Option. A Nonstatutory Stock Option
      shall be transferable to the extent provided in the Option Agreement. If the
      Nonstatutory Stock Option does not provide for transferability, then the
      Nonstatutory Stock Option shall not be transferable except by will or by the
      laws of descent and distribution and shall be exercisable during the lifetime
      of
      the Optionholder only by the Optionholder. Notwithstanding the foregoing, the
      Optionholder may, by delivering written notice to the Company, in a
      form

    
      
        
           

        

        
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    satisfactory
      to the Company, designate a third party who, in the event of the death of the
      Optionholder, shall thereafter be entitled to exercise the Option.

    

    (g)
      Vesting Generally. The total number of shares of Common Stock subject to an
      Option may, but need not, vest and therefore become exercisable in periodic
      installments that may, but need not, be equal. The Option may be subject to
      such
      other terms and conditions on the time or times when it may be exercised (which
      may be based on performance or other criteria) as the Board may deem
      appropriate. The vesting provisions of individual Options may vary. The
      provisions of this Section 6(g) are subject to any Option provisions governing
      the minimum number of shares of Common Stock as to which an Option may be
      exercised.

    

    (h)
      Termination of Continuous Service. In the event an Optionholder's Continuous
      Service terminates (other than upon the Optionholder's death or Disability),
      the
      Optionholder may exercise his or her Option (to the extent that the Optionholder
      was entitled to exercise such Option as of the date of termination) but only
      within such period of time ending on the earlier of (i) the date three (3)
      months following the termination of the Optionholder's Continuous Service (or
      such longer or shorter period specified in the Option Agreement), or (ii) the
      expiration of the term of the Option as set forth in the Option Agreement.
      If,
      after termination, the Optionholder does not exercise his or her Option within
      the time specified in the Option Agreement, the Option shall
      terminate.

    

    (i)
      Extension of Termination Date. An Optionholder's Option Agreement may also
      provide that if the exercise of the Option following the termination of the
      Optionholder's Continuous Service (other than upon the Optionholder's death
      or
      Disability) would be prohibited at any time solely because the issuance of
      shares of Common Stock would violate the registration requirements under the
      Securities Act, then the Option shall terminate on the earlier of (i) the
      expiration of the term of the Option set forth in Section 6(a) or (ii) the
      expiration of a period of three (3) months after the termination of the
      Optionholder's Continuous Service during which the exercise of the Option would
      not be in violation of such registration requirements.

    

    (j)
      Disability of Optionholder. In the event that an Optionholder's Continuous
      Service terminates as a result of the Optionholder's Disability, the
      Optionholder may exercise his or her Option (to the extent that the Optionholder
      was entitled to exercise such Option as of the date of termination), but only
      within such period of time ending on the earlier of (i) the date twelve (12)
      months following such termination (or such longer or shorter period specified
      in
      the Option Agreement) or (ii) the expiration of the term of the Option as set
      forth in the Option Agreement. If, after termination, the Optionholder does
      not
      exercise his or her Option within the time specified herein, the Option shall
      terminate.

      
        
           

        

        
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    (k)
      Death
      of Optionholder. In the event (i) an Optionholder's Continuous Service
      terminates as a result of the Optionholder's death or (ii) the Optionholder
      dies
      within the period (if any) specified in the Option Agreement after the
      termination of the Optionholder's Continuous Service for a reason other than
      death, then the Option may be exercised (to the extent the Optionholder was
      entitled to exercise such Option as of the date of death) by the Optionholder's
      estate, by a person who acquired the right to exercise the Option by bequest
      or
      inheritance or by a person designated to exercise the option upon the
      Optionholder's death pursuant to Section 6(e) or 6(f), but only within the
      period ending on the earlier of (1) the date eighteen (18) months following
      the
      date of death (or such longer or shorter period specified in the Option
      Agreement) or (2) the expiration of the term of such Option as set forth in
      the
      Option Agreement. If, after death, the Option is not exercised within the time
      specified herein, the Option shall terminate.

    

    (l)
      Early
      Exercise. The Option may, but need not, include a provision whereby the
      Optionholder may elect at any time before the Optionholder's Continuous Service
      terminates to exercise the Option as to any part or all of the shares of Common
      Stock subject to the Option prior to the full vesting of the Option. Any
      unvested shares of Common Stock so purchased may be subject to a repurchase
      option in favor of the Company or to any other restriction the Board determines
      to be appropriate. The Company will not exercise its repurchase option until
      at
      least six (6) months (or such longer or shorter period of time required to
      avoid
      a charge to earnings for financial accounting purposes) have elapsed following
      exercise of the Option unless the Board otherwise specifically provides in
      the
      Option.

    

    7.
      PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

    

    (a)
      Stock
      Bonus Awards. Each stock bonus agreement shall be in such form and shall contain
      such terms and conditions as the Board shall deem appropriate. The terms and
      conditions of stock bonus agreements may change from time to time, and the
      terms
      and conditions of separate stock bonus agreements need not be identical, but
      each stock bonus agreement shall include (through incorporation of provisions
      hereof by reference in the agreement or otherwise) the substance of each of
      the
      following provisions: 

    

    (i)
      Consideration. A stock bonus may be awarded in consideration for past services
      actually rendered to the Company or an Affiliate for its benefit;

    

    (ii)
      Vesting. Shares of Common Stock awarded under the stock bonus agreement may,
      but
      need not, be subject to a share repurchase option in favor of the Company in
      accordance with a vesting schedule to be determined by the
      Board;

    
      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

    

     

    (iii)
      Termination of Participant's Continuous Service. In the event a Participant's
      Continuous Service terminates, the Company may reacquire any or all of the
      shares of Common Stock held by the Participant which have not vested as of
      the
      date of termination under the terms of the stock bonus agreement;
      and

    

    (iv)
      Transferability. Rights to acquire shares of Common Stock under the stock bonus
      agreement shall be transferable by the Participant only upon such terms and
      conditions as are set forth in the stock bonus agreement, as the Board shall
      determine in its discretion, so long as Common Stock awarded under the stock
      bonus agreement remains subject to the terms of the stock bonus
      agreement.

    

    (b)
      Restricted Stock Awards. Each restricted stock purchase agreement shall be
      in
      such form and shall contain such terms and conditions as the Board shall deem
      appropriate. The terms and conditions of the restricted stock purchase
      agreements may change from time to time, and the terms and conditions of
      separate restricted stock purchase agreements need not be identical, but each
      restricted stock purchase agreement shall include (through incorporation of
      provisions hereof by reference in the agreement or otherwise) the substance
      of
      each of the following provisions:

    

    (i)
      Purchase Price. The purchase price under each restricted stock purchase
      agreement shall be such amount as the Board shall determine and designate in
      such restricted stock purchase agreement. The purchase price of restricted
      stock
      awards shall not be less than eighty-five percent (85%) of the Common Stock's
      Fair Market Value on the date such award is made or at the time the purchase
      is
      consummated;

    

    (ii)
      Consideration. The purchase price of Common Stock acquired pursuant to the
      restricted stock purchase agreement shall be paid either: (i) in cash at the
      time of purchase; (ii) at the discretion of the Board, according to a deferred
      payment or other similar arrangement with the Participant; or (iii) in any
      other
      form of legal consideration that may be acceptable to the Board in its
      discretion; provided, however, that at any time that the Company is incorporated
      in Delaware, then payment of the Common Stock's "par value," as defined in
      the
      Delaware General Corporation Law, shall not be made by deferred
      payment;

    

    (iii)
      Vesting. Shares of Common Stock acquired under the restricted stock purchase
      agreement may, but need not, be subject to a share repurchase option in favor
      of
      the Company in accordance with a vesting schedule to be determined by the
      Board.;

    

    (iv)
      Termination of Participant's Continuous Service. In the event a Participant's
      Continuous Service terminates, the Company may repurchase or otherwise reacquire
      any or all of the shares of Common Stock held by the Participant
      which

    
      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

    

     

    have
      not
      vested as of the date of termination under the terms of the restricted stock
      purchase agreement; and

    

    (v)
      Transferability. Rights to acquire shares of Common Stock under the restricted
      stock purchase agreement shall be transferable by the Participant only upon
      such
      terms and conditions as are set forth in the restricted stock purchase
      agreement, as the Board shall determine in its discretion, so long as Common
      Stock awarded under the restricted stock purchase agreement remains subject
      to
      the terms of the restricted stock purchase agreement.

    

    8.
      COVENANTS OF THE COMPANY.

    

    (a)
      Availability of Shares. During the terms of the Stock Awards, the Company shall
      keep available at all times the number of shares of Common Stock required to
      satisfy such Stock Awards.

    

    (b)
      Securities Law Compliance. The Company shall seek to obtain from each regulatory
      commission or agency having jurisdiction over the Plan such authority as may
      be
      required to grant Stock Awards and to issue and sell shares of Common Stock
      upon
      exercise of the Stock Awards; provided, however, that this undertaking shall
      not
      require the Company to register under the Securities Act the Plan, any Stock
      Award or any Common Stock issued or issuable pursuant to any such Stock Award.
      If, after reasonable efforts, the Company is unable to obtain from any such
      regulatory commission or agency the authority which counsel for the Company
      deems necessary for the lawful issuance and sale of Common Stock under the
      Plan,
      the Company shall be relieved from any liability for failure to issue and sell
      Common Stock upon exercise of such Stock Awards unless and until such authority
      is obtained.

    

    9.
      USE OF
      PROCEEDS FROM STOCK. 

    

    Proceeds
      from the sale of Common Stock pursuant to Stock Awards shall constitute general
      funds of the Company.

    

    10.
      MISCELLANEOUS

    

    (a)
      Acceleration of Exercisability and Vesting. The Board shall have the power
      to
      accelerate the time at which a Stock Award may first be exercised or the time
      during which a Stock Award or any part thereof will vest in accordance with
      the
      Plan, notwithstanding the provisions in the Stock Award stating the time at
      which it may first be exercised or the time during which it will
      vest.

    

    (b)
      Stockholder Rights. No Participant shall be deemed to be the holder of, or
      to
      have any of the rights of a holder with respect to, any shares of Common
      Stock

    
      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

    

     

    subject
      to such Stock Award unless and until such Participant has satisfied all
      requirements for exercise of the Stock Award pursuant to its terms.

    

    (c)
      No
      Employment or other Service Rights. Nothing in the Plan or any instrument
      executed or Stock Award granted pursuant thereto shall confer upon any
      Participant any right to continue to serve the Company or an Affiliate in the
      capacity in effect at the time the Stock Award was granted or shall affect
      the
      right of the Company or an Affiliate to terminate (i) the employment of an
      Employee with or without notice and with or without Cause, (ii) the service
      of a
      Consultant pursuant to the terms of such Consultant's agreement with the Company
      or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of
      the
      Company or an Affiliate, and any applicable provisions of the corporate law
      of
      the state in which the Company or the Affiliate is incorporated, as the case
      may
      be.

    

    (d)
      Incentive Stock Option $100,000 Limitation. To the extent that the aggregate
      Fair Market Value (determined at the time of grant) of Common Stock with respect
      to which Incentive Stock Options are exercisable for the first time by any
      Optionholder during any calendar year (under all plans of the Company and its
      Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
      portions thereof which exceed such limit (according to the order in which they
      were granted) shall be treated as Nonstatutory Stock Options.

    

    (e)
      Investment Assurances. The Company may require a Participant, as a condition
      of
      exercising or acquiring Common Stock under any Stock Award, (i) to give written
      assurances satisfactory to the Company as to the Participant's knowledge and
      experience in financial and business matters and/or to employ a purchaser
      representative reasonably satisfactory to the Company who is knowledgeable
      and
      experienced in financial and business matters and that he or she is capable
      of
      evaluating, alone or together with the purchaser representative, the merits
      and
      risks of exercising the Stock Award; and (ii) to give written assurances
      satisfactory to the Company stating that the Participant is acquiring Common
      Stock subject to the Stock Award for the Participant's own account and not
      with
      any present intention of selling or otherwise distributing the Common Stock.
      The
      foregoing requirements, and any assurances given pursuant to such requirements,
      shall be inoperative if (1) the issuance of the shares of Common Stock upon
      the
      exercise or acquisition of Common Stock under the Stock Award has been
      registered under a then currently effective registration statement under the
      Securities Act or (2) as to any particular requirement, a determination is
      made
      by counsel for the Company that such requirement need not be met in the
      circumstances under the then applicable securities laws. The Company may, upon
      advice of counsel to the Company, place legends on stock certificates issued
      under the Plan as such counsel deems necessary or appropriate in
      order

    
      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

    

     

    to
      comply
      with applicable securities laws, including, but not limited to, legends
      restricting the transfer of the Common Stock.

    

    (f)
      Withholding Obligations. To the extent provided by the terms of a Stock Award
      Agreement, the Participant may satisfy any federal, state or local tax
      withholding obligation relating to the exercise or acquisition of Common Stock
      under a Stock Award by any of the following means (in addition to the Company's
      right to withhold from any compensation paid to the Participant by the Company)
      or by a combination of such means: (i) tendering a cash payment; (ii)
      authorizing the Company to withhold shares of Common Stock from the shares
      of
      Common Stock otherwise issuable to the Participant as a result of the exercise
      or acquisition of Common Stock under the Stock Award, provided, however, that
      no
      shares of Common Stock are withheld with a value exceeding the minimum amount
      of
      tax required to be withheld by law; or (iii) delivering to the Company owned
      and
      unencumbered shares of Common Stock.

    

    11.
      ADJUSTMENTS UPON CHANGES IN STOCK.

    

    (a)
      Capitalization Adjustments. If any change is made in, or other event occurs
      with
      respect to, the Common Stock subject to the Plan, or subject to any Stock Award,
      without the receipt of consideration by the Company (through merger,
      consolidation, reorganization, recapitalization, reincorporation, stock
      dividend, dividend in property other than cash, stock split, liquidating
      dividend, combination of shares, exchange of shares, change in corporate
      structure or other transaction not involving the receipt of consideration by
      the
      Company), the Plan will be appropriately adjusted in the class(es) and maximum
      number of securities subject to the Plan pursuant to Section 4(a) and 4(b)
      and
      the maximum number of securities subject to award to any person pursuant to
      Section 5(c), and the outstanding Stock Awards will be appropriately adjusted
      in
      the class(es) and number of securities and price per share of Common Stock
      subject to such outstanding Stock Awards. The Board shall make such adjustments,
      and its determination shall be final, binding and conclusive. (The conversion
      of
      any convertible securities of the Company shall not be treated as a transaction
      "without receipt of consideration" by the Company.)

    

    (b)
      Dissolution or Liquidation. In the event of a dissolution or liquidation of the
      Company, then all outstanding Stock Awards shall terminate immediately prior
      to
      the completion of such dissolution or liquidation.

    

    (c)
      Corporate Transaction. In the event of a Corporate Transaction, any surviving
      corporation or acquiring corporation may assume any or all Stock Awards
      outstanding under the Plan or may substitute similar stock awards for Stock
      Awards outstanding under the Plan (it being understood that similar stock awards
      include awards to acquire the same consideration paid to the

    
      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

    

     

    stockholders
      or the Company, as the case may be, pursuant to the Corporate Transaction).
      In
      the event any surviving corporation or acquiring corporation does not assume
      any
      or all such outstanding Stock Awards or substitute similar stock awards for
      such
      outstanding Stock Awards, then with respect to Stock Awards that have been
      neither assumed nor substituted and that are held by Participants whose
      Continuous Service has not terminated prior to the effective time of the
      Corporate Transaction, the vesting of such Stock Awards (and, if applicable,
      the
      time during at which such Stock Awards may be exercised) shall (contingent
      upon
      consummation of such Corporate Transaction) be accelerated in full to a date
      prior to the consummation of such Corporate Transaction as the Board shall
      determine (or, if the Board shall not determine such a date, to the date that
      is
      five (5) days prior to the consummation of the Corporate Transaction), and
      the
      Stock Awards shall terminate if not exercised (if applicable) at or prior to
      such event effective time. With respect to any other Stock Awards outstanding
      under the Plan, that have been neither assumed nor substituted, the vesting
      of
      such Stock Awards (and, if applicable, the time at which such Stock Award may
      be
      exercised) shall not be accelerated unless otherwise provided in a written
      agreement between the Company or any Affiliate and the holder of such Stock
      Award, and such Stock Awards shall terminate if not exercised (if applicable)
      prior to the effective time of the Corporate Transaction.

    

    12.
      AMENDMENT OF THE PLAN AND STOCK AWARDS.

    

    (a)
      Amendment of Plan. The Board at any time, and from time to time, may amend
      the
      Plan. However, except as provided in Section 11 relating to adjustments upon
      changes in Common Stock, no amendment shall be effective unless approved by
      the
      stockholders of the Company to the extent stockholder approval is necessary
      to
      satisfy the requirements of Section 422 of the Code.

    

    (b)
      Stockholder Approval. The Board may, in its sole discretion, submit any other
      amendment to the Plan for stockholder approval, including, but not limited
      to,
      amendments to the Plan intended to satisfy the requirements of Section 162(m)
      of
      the Code and the regulations thereunder regarding the exclusion of
      performance-based compensation from the limit on corporate deductibility of
      compensation paid to certain executive officers.

    

    (c)
      Contemplated Amendments. It is expressly contemplated that the Board may amend
      the Plan in any respect the Board deems necessary or advisable to provide
      eligible Employees with the maximum benefits provided or to be provided under
      the provisions of the Code and the regulations promulgated thereunder relating
      to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock
      Options granted under it into compliance therewith.

    
      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

    

     

    (d)
      No
      Impairment of Rights. Rights under any Stock Award granted before amendment
      of
      the Plan shall not be impaired by any amendment of the Plan unless (i) the
      Company requests the consent of the Participant and (ii) the Participant
      consents in writing.

    

    (e)
      Amendment of Stock Awards. The Board at any time, and from time to time, may
      amend the terms of any one or more Stock Awards; provided, however, that the
      rights under any Stock Award shall not be impaired by any such amendment unless
      (i) the Company requests the consent of the Participant and (ii) the Participant
      consents in writing.

    

    13.
      TERMINATION OR SUSPENSION OF THE PLAN.

    

    (a)
      Plan
      Term. The Board may suspend or terminate the Plan at any time. Unless sooner
      terminated, the Plan shall terminate on the day before the tenth (10th)
      anniversary of the date the Plan is adopted by the Board or approved by the
      stockholders of the Company, whichever is earlier. No Stock Awards may be
      granted under the Plan while the Plan is suspended or after it is
      terminated.

    

    (b)
      No
      Impairment of Rights. Suspension or termination of the Plan shall not impair
      rights and obligations under any Stock Award granted while the Plan is in effect
      except with the written consent of the Participant.

    

    14.
      EFFECTIVE DATE OF PLAN.

    

    The
      Plan
      shall become effective as determined by the Board, but no Stock Award shall
      be
      exercised (or, in the case of a stock bonus, shall be granted) unless and until
      the Plan has been approved by the stockholders of the Company, which approval
      shall be within twelve (12) months before or after the date the Plan is adopted
      by the Board.

    

    15.
      CHOICE OF LAW.

    

    The
      law
      of the State of Delaware shall govern all questions concerning the construction,
      validity and interpretation of this Plan, without regard to such state's
      conflict of laws rules.

    
      
         

      

        -17-EX 10.3

    EXHIBIT
      10.3

     

    PROPERTY
      PURCHASE AGREEMENT

     

     

    THIS
      AGREEMENT (this “Agreement”) is made as of the 1st
      day of
      August, 2006,

     

    BETWEEN:

     

    ANGLO
      GOLD MINING INC.
      ,
      a Nevada
      Corporation

     

    (hereinafter
      referred to as the “Vendor”)

     

    OF
      THE
      FIRST PART,

     

    AND:

     

    SILVER
      RESERVE CORP.,
      a
      company incorporated under the laws of the State of Delaware 

     

    (hereinafter
      referred to as the “Purchaser”)

     

    OF
      THE
      SECOND PART.

     

    RECITALS

     

    WHEREAS
      the Vendor is the recorded and beneficial owner of a 100% interest in certain
      mineral claims situated in the State of Nevada (more particularly described
      in
      Schedule "A" hereto and collectively hereinafter referred to as the “Property”);

     

    WHEREAS
      the Vendor has agreed to sell to the Purchaser all of its right, title and
      interest in and to the Property, subject to the Net Profits Royalties as set
      out
      herein.

     

    NOW
      THEREFORE, in consideration of the mutual covenants and agreements herein
      contained and subject to the terms and conditions hereafter set out, the parties
      hereto agree as follows:

     

    1.  PURCHASE
      AND SALE

     

    1.01  The
      Vendor hereby sells and transfers to the Purchaser, and the Purchaser hereby
      buys and accepts from the Vendor, all of the Vendor’s right, title and interest
      in and to the Property (subject to the Net Smelter Royalties described below)
      in
      consideration of the sum of 1,850,000 common shares in the capital of the
      Purchaser (the “Shares”),
      to be
      paid and delivered to the Vendor on closing.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    2.  ROYALTIES

     

    2.01 The
      Property is subject to 2% Net Smelter Royalties (“NSR”) as described in Schedule
“B”. 

     

    3.    CLOSING
      DATE

     

    3.01  In
      this
      agreement, “Closing
      Date”
      means
      August 31, 2006, or such other date as may be agreed to by the parties
      hereto.

     

    4.  TRANSFER
      OF TITLE

     

    4.01  On
      the
      Closing Date, the Vendor shall deliver to the Purchaser recordable Bills of
      Sale
      or other applicable conveyancing documentation sufficient to affect the transfer
      of a 100% interest in and to the Property to the Purchaser. Vendor agrees to
      execute such further documentation as may be necessary or desirable to evidence
      such transfer of title and/or to record such transfer in appropriate registries,
      at the request of Purchaser.

     

    5.  RIGHT
      OF ENTRY

     

    5.01  The
      Purchaser, its servants, agents and workmen and any persons duly authorized
      by
      the Purchaser following execution of this Agreement, shall have the exclusive
      right to enter upon and take possession of and prospect, explore and develop
      the
      Property in such manner as the Purchaser in its sole discretion may deem
      advisable. 

     

    6.  REPRESENTATIONS
      AND WARRANTIES OF THE VENDOR

     

    
      	6.01	
              The
                Vendor hereby represents and warrants to the Purchaser
                that:

            

    

     

    
      	 	
              (a)

            	
              it
                is a company in good standing under the laws of the State of Nevada
                and
                has the power and authority to enter into this
                Agreement;

            

    

     

    
      	 	
              (b)

            	
              immediately
                prior to the closing of this Agreement it is the recorded and beneficial
                owner of a 100% interest in and to the Property and except as set
                out in
                Article 2 and Schedule B hereto the Property is not subject to any
                liens
                or encumbrances of any kind
                whatsoever;

            

    

     

    
      	 	
              (c)

            	
              the
                mineral claims comprising the Property have been validly located
                and are
                now duly recorded and in good standing substantially in accordance
                with
                the laws in effect in the jurisdiction in which they are
                situated;

            

    

     

    
      	 	
              (d)

            	
              the
                entering into this Agreement does not conflict with any applicable
                law nor
                does it conflict with, or result in a breach of or accelerate the
                performance required by, any contract or other commitment to which
                it is a
                party or by which it is bound;

            

    

     

    
      	 	
              (e)

            	
              it
                has the exclusive right to enter into this Agreement and all necessary
                authority to assign to the Purchaser all of its right, title and
                interest
                in and to the Property in accordance with the terms and conditions
                of this
                Agreement;

            

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

     

    
      	 	
              (f)

            	
              to
                the best of its knowledge, other than the Net Smelter Royalties provided
                for Article 2 and in Schedule “B” hereto, the Property is free and clear
                of all liens and encumbrances and all claims are in good standing
                with
                assessment work filed for, not less than one year following
                closing;

            

    

     

    
      	 	
              (g)

            	
              there
                are no outstanding or, to the best of the Vendor’s information, knowledge
                and belief, proposed, threatened or contemplated actions or suits
                which,
                if successful, would or could affect the market value or ownership
                of the
                Property or any portion thereof;

            

    

     

    
      	 	
              (h)

            	
              conditions
                on and relating to the Property are in compliance with all applicable
                laws, regulations and orders relating to environmental matters, including,
                but not limited to, waste disposal and storage and Vendor is not
                aware of
                any conditions with respect to the Property that could give rise
                to
                environmental claims that would impair the Purchaser’s development of the
                Property;

            

    

     

    
      	 	
              (i)

            	
              there
                are no reclamation liabilities to be carried out in the future,
                outstanding work orders or actions required to be taken relating
                to the
                condition of the Property, or any operations that have been carried
                out
                thereon; and

            

    

     

    
      	 	
              (j)

            	
              on
                the Closing Date the Vendor will deliver to the Purchaser copies
                of all
                reports, maps and other documents and or materials relating to the
                Property in the Vendor’s
                possession.

            

    

     

    
      	 	
              (k)

            	
              the
                Vendor has been informed as to, and is familiar with, the business
                activities of the Purchaser and its affiliates, and has had an opportunity
                and proceeded, or waived the opportunity, to (i) review the books
                and
                records of the Purchaser and its affiliates and to ask questions
                of, and
                receive answers from, appropriate representatives of the Purchaser
                and its
                affiliates concerning the Purchaser and its affiliates and the terms
                and
                conditions of this Agreement, and (ii) obtain and review all additional
                information relating to the history and proposed business plan of
                the
                Purchaser and its affiliates that it deems
                necessary.

            

    

     

    
      	 	
              (l)

            	
              the
                Vendor fully understands that the Shares have not been registered
                under
                the Securities Act in reliance upon exemptions therefrom, and,
                accordingly, to the extent that it is not supplied with the information
                which would have been contained in a registration statement filed
                under
                the Securities Act, it must rely on its own access to such
                information.

            

    

     

    
      	 	
              (m)

            	
              the
                Vendor has had an opportunity to obtain and has obtained a general
                and
                complete understanding satisfactory to it of the Purchaser, its affiliates
                and their services, potential assets, finances, and manner of doing
                business sufficient to permit it to evaluate (i) the Purchaser and
                its
                prospects and (ii) the risks and merits of accepting the Shares on
                payment
                for the Property.

            

    

     

    
      	 	
              (n)

            	
              the
                Vendor (i) recognizes that accepting the Shares involves risk, (ii)
                has
                carefully considered whether accepting he Shares is appropriate,
                and
                (iii)

            

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

     

    has
      obtained such individual financial, tax and legal advice as it deems necessary
      or appropriate to fully understand the risks involved and to evaluate accepting
      the Shares.

     

    
      	 	
              (o)

            	
              the
                Vendor recognizes that it must bear the economic risk involved in
                accepting the Shares for an indefinite period of time because, among
                other
                reasons, the Shares have not been registered under the Securities
                Act and
                therefore cannot be sold, pledged, assigned or otherwise disposed
                of
                unless (i) they are subsequently registered under the Securities
                Act or
                (ii) an exemption from such registration is available and an opinion
                of
                counsel acceptable to the Purchaser that the transfer is not in violation
                of any federal securities act or state securities law is provided
                to the
                Purchaser.

            

    

     

    
      	 	
              (p)

            	
              the
                Vendor recognizes that there is no current market for the Shares;
                that
                there can be no assurances that such a market will exist any time
                in the
                future and accordingly it may not be able to sell or dispose of any
                of the
                Shares even if it had held them for a number of years; that its right
                to
                transfer the Shares will be restricted by federal and state securities
                laws and a legend to this effect will be placed on the certificates
                representing the Shares and that such laws impose strict limitations
                upon
                such transfer; and the Purchaser is under no obligation in connection
                with
                the subsequent transfer thereof by it or to aid it in obtaining an
                exemption from such registration.

            

    

     

    
      	 	
              (q)

            	
              the
                Vendor acknowledges that the Share certificate representing the purchase
                price shall be legended with a legend substantially in the following
                form:

            

    

     

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE STATE SECURITIES LAWS. THESE
      SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE
      ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITY UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND QUALIFICATION UNDER ANY APPLICABLE
      STATE
      SECURITIES LAWS OR (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
      COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
      SECURITIES LAWS. ANY PURPORTED TRANSFER OR OTHER DISPOSITION OF THE SECURITIES
      REPRESENTED BY THIS CERTIFICATE IN ANY MANNER WHICH IS IN VIOLATION OF THE
      FOREGOING LIMITATIONS IS INVALID AND THE COMPANY WILL NOT TRANSFER SUCH
      INVALIDLY TRANSFERRED SECURITY ON THE BOOKS OF THE COMPANY.

     

    
      	 	
              (r)

            	
              The
                Vendor acknowledges and agrees that the Purchaser is undertaking
                to
                register the Shares and upon registration, the Shares will be subject
                to a
                private restriction wherein only 20% of the Shares may be sold after
                one
                year has expired from the date of issue and the remaining 80% may
                be
                sold

            

    

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    after
      two
      years have expired from the date of issue and the Purchaser shall be entitled
      to
      legend the share certificate to this effect.

     

    6.02  The
      representations and warranties hereinbefore set out are conditions upon which
      the Purchaser has relied in entering into this Agreement and shall survive
      the
      Closing Date by a period of 24 months, except that the representation and
      warranty of Vendor pursuant to Sections 6.01 (b), (c), (d), (e) and (f) shall
      survive indefinitely. The Vendor hereby indemnifies and saves the Purchaser
      harmless from all loss, damage, costs, actions and suits arising out of or
      in
      connection with any breach of any representation or warranty made by it and
      contained in this Agreement.

     

    6.03  The
      Purchaser accepts, as of the date of this Agreement, responsibility for all
      ongoing cost of the maintenance of the Property and without limitation shall
      include the sustaining fees due August 31, 2006.

     

    7.  REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER

     

    7.01  The
      Purchaser represents and warrants to the Vendor that:

     

    
      	 	
              (a)

            	
              it
                has full corporate power and authority to enter into this Agreement
                and
                the entering into of this Agreement does not conflict with any applicable
                laws or with its charter documents nor does it conflict with, or
                result in
                a breach of, or accelerate the performance required by any contract
                or
                other commitment to which it is party or by which it is
                bound;

            

    

     

    
      	 	
              (b)

            	
              the
                shares to be delivered to the Vendor upon the Closing Date will be
                duly
                and validly authorized and issued and
                non-assessable;

            

    

     

    
      	 	
              (c)

            	
              the
                shares delivered to the Vendor on Closing will be incorporated for
                registration in SB2 registration statement, to be filed by the Purchaser
                under the Securities Act of 1933 as
                amended.

            

    

     

    7.02 The
      representations and warranties hereinbefore set out are conditions upon which
      the Vendor has relied on entering into this Agreement and shall survive the
      Closing Date. The Purchaser hereby indemnifies and saves the Vendor harmless
      from all loss, damage, costs, actions and suits arising out of or in connection
      with any breach of any representation or warranty made by it and contained
      in
      this Agreement.

     

    8.  INDEPENDENT
      ACTIVITIES

     

    8.01  No
      joint
      venture is created by this Agreement. Except as expressly provided herein,
      each
      party shall have the free and unrestricted right to independently engage in
      and
      receive the full benefit of any and all business endeavours of any sort
      whatsoever, whether or not competitive with the endeavours contemplated herein
      without consulting the other or inviting or allowing the other to participate
      therein. No party shall be under any fiduciary or other duty to the other which
      will prevent it from engaging in or enjoying the benefits of competing
      endeavours within the general scope of the endeavours contemplated herein.
      The
      legal doctrines of "corporate opportunity" sometimes applied to persons engaged
      in a joint venture or having fiduciary status shall not apply in the case of
      any
      party. In particular, without limiting the foregoing, no party shall have an
      obligation to any other party as to:

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    
      	
            	(a)	
              any
                opportunity to acquire, explore and develop any mining property,
                interest
                or right presently owned by it or offered to it outside of the Property
                at
                any time; and

            

    

     

    
      	 	
              (b)

            	
              the
                erection of any mining plant, mill, smelter or refinery, whether
                or not
                such mining plant, mill, smelter or refinery treats ores or concentrates
                from the Property.

            

    

     

    9.  CONFIDENTIALITY
      OF INFORMATION

     

    9.01  The
      parties hereto shall, subject to the exceptions set out hereinafter, treat
      all
      data, reports, records and other information relating to this agreement and
      the
      Property as confidential. While this Agreement is in effect, no party hereto
      shall, without the express written consent of the other, disclose to any third
      party any information concerning the results of the operations hereunder nor
      issue any press releases concerning this Agreement or its exploration operations
      except where such disclosure is mandatory under the law or is deemed necessary
      by the disclosing party's counsel for the satisfaction by the disclosing party
      of its obligations under applicable securities law, and the disclosing party
      has, prior to the public disclosure, given the non-disclosing parties a draft
      copy of the disclosure.

     

    10.  ARBITRATION

     

    10.01  Any
      controversy between the parties hereto involving any claim arising out of or
      relating to this Agreement, will be submitted to and be settled by final and
      binding arbitration in Las Vegas, Nevada, in accordance with the then current
      Commercial Arbitration Rules of the American Arbitration Association (the
“AAA”), and judgment upon the award rendered by the arbitrators may be entered
      in any court having jurisdiction thereof. Such arbitration shall be conducted
      by
      three (3) arbitrators chosen by the Vendor and the Purchaser, or failing such
      agreement, an arbitrator experienced in the sale of similar mineral assets
      appointed by the AAA. There shall be limited discovery prior to the arbitration
      hearing as follows: (a) exchange of witness lists and copies of documentary
      evidence and documents relating to or arising out of the issues to be
      arbitrated, (b) depositions of all party witnesses, and (c) such other
      depositions as may be allowed by the arbitrators upon a showing of good cause.
      Depositions shall be conducted in accordance with the Nevada Code of Civil
      Procedure, the arbitrator(s) shall be required to provide in writing to the
      parties the basis for the award or order of such arbitrator(s), and a court
      reporter shall record all hearings, with such record constituting the official
      transcript of such proceedings.

     

    11.  NOTICES

     

    11.01  Any
      notice, election, consent or other writing required or permitted to be given
      hereunder shall be deemed to be sufficiently given if delivered or if mailed
      by
      registered air mail or by fax, addressed as follows:

     

     

    In
      the
      case of the Vendor:

     

    Anglo
      Gold Mining Inc.

    3702
      S.
      Virginia, Ste G-12-405

    Reno,
      Nevada

    89502-6097

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    In
      the
      case of the Purchaser:

     

    Silver
      Reserve Corp.

    1226
      White Oaks Blvd., Suite 10A

    Oakville,
      Ontario L6H 2B9

    Fax
      #905-845-6415

    Attention:
      Stafford Kelley

     

    and
      any
      such notice given as aforesaid shall be deemed to have been given to the parties
      hereto if delivered, when delivered, or if mailed, on the tenth business day
      following the date of mailing, or, if faxed, on the next succeeding day
      following the faxing thereof PROVIDED HOWEVER that during the period of any
      postal interruption in either the country of mailing or the country of delivery,
      any notice given hereunder by mail shall be deemed to have been given only
      as of
      the date of actual delivery of the same. Any party may from time to time by
      notice in writing change its address for the purpose of this
      paragraph.

     

    12.  GENERAL
      TERMS AND CONDITIONS

     

    12.01  The
      parties hereto hereby covenant and agree that they will execute such further
      agreements, conveyances and assurances as may be requisite, or which counsel
      for
      the parties may deem necessary to effectually carry out the intent of this
      Agreement.

     

    12.02  This
      Agreement shall represent the entire understanding between the parties with
      respect to the Property. No representa-tions or inducements have been made
      save
      as herein set forth. No changes, alterations, or modifications of this Agreement
      shall be binding upon either party until and unless an amendment to this
      Agreement or a memorandum in writing to such effect shall have been signed
      by
      all parties hereto.

     

    12.03  The
      titles to the articles to this Agreement shall not be deemed to form part of
      this Agreement but shall be regarded as having been used for convenience of
      reference only.

     

    12.04  The
      schedules to this Agreement shall be construed with and as an integral part
      of
      this Agreement to the same extent as if they were set forth verbatim
      herein.

     

    12.05  This
      Agreement shall be governed by and interpreted in accordance with the laws
      in
      effect in the State of Delaware.

     

    12.06  This
      Agreement shall enure to the benefit of and be binding upon the parties hereto
      and their respective successors and assigns.

     

    12.07 This
      Agreement may be executed in multiple counterparts, each of which shall be
      deemed an original, and all of which together shall constitute one and the
      same
      instrument. Execution and delivery of this Agreement by exchange of facsimile
      copies bearing facsimile

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

    signature
      of a party shall constitute a valid and binding execution and delivery of this
      Agreement by such party. Such facsimile copies shall constitute enforceable
      original documents.

     

    12.08  Time
      shall be of the essence of this agreement.

     

     

    IN
      WITNESS WHEREOF this Agreement has been executed by the parties hereto as of
      the
      day and year first above written.

     

     

    ANGLO
      MINING CORP.

     

     

    By: 
      s/
      George Orr

      
        

      

    

    Its: President

     

     

    SILVER
      RESERVE CORP.

     

     

    By: 
      s/
      Todd Montgomery

      
        

      

    

    Its: President

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    SCHEDULE
      "A"

     

    TO
      THAT
      CERTAIN AGREEMENT MADE AS OF THE 1ST
      DAY OF
      AUGUST, 2006 BETWEEN ANGLO GOLD MINING INC., OF THE FIRST PART AND SILVER
      RESERVE CORP., OF THE SECOND PART

    
      
        

      

    

     

    THE
      “PROPERTY”

     

     

    PANSY
      LEE GROUP

     

    
      	
              NAME

            	
              NMC
                No.

            	
              LOCATION
                DATE

            
	
              PANSY
                LEE No.1

            	
              879333

            	
              —

            
	
              PANSY
                LEE No.3

            	
              879334

            	
              —

            
	
              PANSY
                LEE No.5

            	
              879335

            	
              —

            
	
              PANSY
                LEE 2

            	
              859406

            	
              Dec.
                20/03

            
	
              PANSY
                LEE 4

            	
              859407

            	
              Dec.
                20/03

            
	
              PANSY
                LEE 6

            	
              859408

            	
              Dec.
                20/03

            
	
              PANSY
                LEE 7-30 

               

              30
                Claims

            	
              859409-432

            	
              Dec.
                20/03

            

    

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    SCHEDULE
      “B”

     

    Attached
      to and forming part of the Agreement dated the 1st of August, 2006, between
      Anglo Gold Mining Inc. and Silver Reserve Corp.

     

    Whereas
      based on an agreement dated June 15, 2003 between the Vendor and William M.
      Clem
      and Delores K. Clem, 171 Olympic Drive, Mountain Home, Arkansas 72653, the
      Vendor agreed to the payment of a 2% NSR on the Pansey Lee claims, No. 1 through
      No. 8, based on the following formula:

     

    Net
      Smelter Returns Royalty

     

    1.1    Net
      Smelter Returns shall be the Gross Revenue received by the Purchaser, less
      Permissible Deductions, calculated on a calendar quarterly basis with the
      following meanings in effect:

     

    (a)    “Gross
      Revenue” means the aggregate of the following amounts received in each quarterly
      period following the commencement of commercial production:

     

    
      	 	
              (i)

            	
              the
                revenue received by the Purchaser from arm’s length purchasers of all
                mineral products produced from the Property (the
                “Products”);

            

    

     

    
      	 	
              (ii)

            	
              the
                air market value of all Products sold by the Purchaser in such period
                to
                persons not dealing at arm’s length with the Purchaser;
                and

            

    

     

    
      	 	
              (iii)

            	
              the
                Purchaser’s share of the proceeds of insurance on
                Products.

            

    

     

    (b)    “Permissible
      Deductions” means the aggregate of the following charges (to the extent that
      they are not deducted by any purchaser in computing payment) that are paid
      by
      the Purchaser in each quarterly period:

     

    
      	 	
              (i)

            	
              sales
                charges levied by any sales agent on the sale of
                Products;

            

    

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    
      	 	
              (ii)

            	
              transportation
                costs for Products from the property to the place of beneficiation,
                processing or treatment and thence to the place of delivery of Products
                to
                a purchaser thereof, including shipping, freight, handling and forwarding
                expenses;

            

    

     

    
      	 	
              (iii)

            	
              all
                costs, expenses and charges of any nature whatsoever which are either
                paid
                or incurred by the Purchaser in connection with the refinement of
                beneficiation of Products after leaving the property, including all
                weighing, sampling, essaying and representation costs, metal losses,
                any
                of umpire charges, and any penalties charged by the processor, refinery
                or
                smelter; and

            

    

     

    
      	 	
              (iv)

            	
              all
                insurance costs on Products and any government royalties, production
                taxes, severance taxes and sales and other taxes levied on Products
                on or
                the production or value thereof (other than any Federal, Provincial,
                State, municipal or similar taxes levied on the income or profit
                of the
                Purchaser), provided that where a cost or expense otherwise constituting
                a
                Permissible Deduction is incurred by the Purchaser in a transaction
                with a
                party with whom it is not dealing at arm’s length, such cost or expense
                may be deducted but only as to the leaser of the actual cost incurred
                by
                the Purchaser or the fair market value thereof, calculated at the
                time of
                such transaction and under all the circumstances
                thereof.

            

    

     

    1.2    The
      payment on account of the Royalty for each calendar quarter will be calculated
      and paid within sixty (60) days after the end of each calendar quarter. Smelter
      settlement sheets, if any, and a statement setting forth calculations in
      sufficient detail to show the payment’s derivation (the “Statement”) must be
      submitted with the payment.

     

    1.3    In
      the
      event that final amounts required for the calculation of the payment on account
      of the Royalty are not available within the period referred to in Section 1.2
      of
      this Agreement, then provisional amounts will be estimated and such payment
      will
      be paid on the basis of this provisional calculation. Positive or negative
      adjustments will be made to the payment on account of the Royalty for the
      succeeding quarter.

     

    1.4    All
      payments on account of the Royalty will be considered final and in full
      satisfaction of all obligations of the Purchaser or with respect thereto, unless
      the Vendors deliver to the Purchaser a written notice (the “Objection Notice”)
      describing and setting forth a specific objection to the calculation thereof
      within sixty (60) days after receipt by the Vendors of the Statement. If the
      Vendors object to a particular Statement as herein provided, the Vendors will,
      for a period of sixty (60) days after the Purchaser’s receipt of such Objection
      Notice, have the right, upon reasonable notice and at reasonable times, to
      have
      the Purchaser’s accounts and records relating to the calculation of the payment
      in question audited by the auditors of the Purchaser. If such audit determines
      that there has been a deficiency or an excess in the payment made to the
      Vendors, such deficiency or excess will be resolved by adjusting the next
      quarterly payment due hereunder. The Vendors will pay all the costs and expenses
      of such audit unless a deficiency of five (5%) percent or more, of the amount
      due is determined to exist. All books and records used and kept by the Purchaser
      to calculate the Royalty due hereunder will be kept in accordance with Canadian
      generally accepted accounting principles. Failure on the part of the Vendors
      to
      make claim against the Purchaser for adjustment in such sixty (60) day period
      by
      delivery of an Objection Notice will conclusively establish the correctness
      and
      sufficiency of the Statement and payment on account of the Royalty for such
      quarter.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    1.5    All
      profits and losses resulting from the Purchaser engaging in any commodity
      futures trading, option trading, metals trading, gold loans or any combination
      thereof, and any other hedging transactions with respect to a Product which
      is a
      precious metal (collectively “Hedging Transactions”) are specifically excluded
      from calculations of the payments on account of the Royalty pursuant to this
      Agreement (it being the intent of the parties that the Purchaser will have
      the
      unrestricted right to market and sell Product to third parties that the
      Purchaser will have the unrestricted right to market and sell Product to third
      parties in any manner as it chooses and that the Vendors will not have any
      right
      to participate in such marketing activities or to share in any profits or losses
      therefrom). All Hedging Transactions by the Purchaser and all profits or losses
      associated therewith, if any, will be solely for the Purchaser’s account. The
      amount of Net Smelter Revenue derived from all Product subject to Hedging
      Transactions by the Purchaser will be determined pursuant to the provisions
      of
      this Paragraph 1.5 and not Paragraph 1.1. As to precious metals subject to
      Hedging Transactions by the Purchaser, Net Smelter Revenue will be determined
      without reference to transactions and will be determined by using, for gold,
      the
      quarterly average price of gold, which will be calculated y dividing the sum
      of
      all London the Vendors Market Association P.M. Gold Fix prices reported for
      the
      calendar quarter in question by the number of days for which such prices were
      quoted, and for silver, the quarterly average price of silver, which will be
      calculated by dividing the sum of all New York Commodity Exchange (“COMEX”)
      prices for silver quoted by and at the closing of COMEX reported for the
      calendar quarter in question by the number of days for which such prices were
      quoted, less, in each case, an amount reasonably equivalent to the deductions
      permitted by Paragraph 1.1(b). Any Product subject to Hedging Transactions
      will
      be deemed to be sold, and revenues received therefrom, only on the date of
      final
      settlement of the amount of refined Product allocated to the account of the
      Purchaser b y a third party refinery in respect of such transactions.
      Furthermore, the Purchaser will have no obligation to fulfill any future
      contracts, forward sales, gold loans or other Hedging Transaction which the
      Purchaser or any of its Associated Companies may hold with Product.

     

    1.6    The
      Vendors may transfer all or any portion of its interest in the Royalty, but
      if
      the Royalty becomes payable to three or more parties, those parties will
      appoint, and will deliver to the Purchaser, a document executed by all those
      parties appointing, a single agent or trustee of all such parties to whom the
      Purchaser will make all payments on account of the Royalty. The Purchaser will
      have no responsibility as to the division of the Royalty payments among such
      parties, and if the Purchaser makes a payment or payments on account of the
      Royalty to such appointed trustee or agent in accordance with the provisions
      of
      this Paragraph 1.6, it will be conclusively deemed that such payment or payments
      have been received by the Vendors. All charges of the agent or trustee will
      be
      born solely by the parties receiving payments on account of the
      Royalty.

     

    Any
      decision to place the Pansey Lee Claims into production shall be at the sole
      discretion of the Purchaser and the Purchaser shall be under no obligation
      to
      place the said claims into production. The Purchaser shall have an unfettered
      right to suspend or curtail any such production operation as it in its sole
      discretion any determine. Advance Royalty payments, if any, paid to the Vendors
      pursuant to this Agreement shall be deducted form any Royalty payments that
      may
      accrue during the term of this Agreement.

    
      
         

      

        -12-

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