Document:

Exhibit
10.2

 

SUBSCRIPTION AGREEMENT

 

A completed and originally executed copy of
this Subscription Agreement, the Private Placement Questionnaire and
Undertaking attached as Schedule “A”, the Confirmation of Status as U.S. “Accredited
Investor” attached as Schedule “B” and the Confirmation of Status as British
Columbia “Accredited Investor” attached as Schedule “C” (if the Purchaser is a
resident of British Columbia, Canada), must be delivered by no later than
4:30 p.m. (Vancouver time) on September 24, 2004 to:

 

Global Resource Investments Ltd.

c/o Perkins Smith & Cohen LLP

One Beacon Street

Boston, Massachusetts 02108

Fax No: (617) 854-4040

 

 

	
  Issuer:
  Vista Gold Corp.

  	
   

  	
  Issue:

  	
   

  	
  Units, each
  unit consisting of one Share (as defined below) and one Warrant (as defined
  below) 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Price
  per Unit:  U.S.$3.30

  	
   

  	
   

  	
  Total
  Subscription Price: U.S.$                   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  Number
  of
  Units:                   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  Name and
  Address of Purchaser:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
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  (Zip Code/Postal Code)

  	 

											

 

Alternate Registration Instructions for
Certificates:  If other than in the name of the Purchaser:

 

	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
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  (Zip Code/Postal Code)

  

 

Delivery Instructions:  The name and address
(including contact name and telephone number) of the person to whom the
certificates representing the Shares and Warrants are to be delivered, if other than the Purchaser:

 

	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
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Number and type of securities of Vista Gold Corp.
presently held directly and indirectly:

 

	
  Type of Security

  	
   

  	
  Number

  
	
  Common shares

  	
   

  	
   

  
	
  Convertible security

  	
   

  	
   

  

 

 

TO:                         VISTA GOLD CORP.

 

1.                             Subscription.  The undersigned (the “Purchaser”)
hereby tenders to Vista Gold Corp. (the “Corporation”)
this subscription offer which, upon acceptance by the Corporation, will
constitute an agreement (the “Subscription Agreement”)
of the Purchaser with the Corporation to purchase from the Corporation and, on
the part of the Corporation, to sell to the Purchaser, the Units (as defined
below) set out on the cover page hereof (the “Purchaser’s
Units”) at the price of U.S.$3.30 per Unit (the “Purchase Price”), all on the terms and subject to the
conditions set forth in this Subscription Agreement.  Each Unit will consist of one Share (as
defined below) and one Warrant (as defined below).

 

2.                             Acknowledgement.  The Purchaser acknowledges
that the Purchaser’s Units will be issued in connection with the creation and
issuance of an aggregate of up to 1,966,456 Units for an aggregate subscription
price of up to U.S.$6,489,304.80 to be sold by the Corporation by private
placement (the “Offering”) and
that the Corporation has agreed to pay Global Resource Investments Ltd. (the “Finder”) a fee equal to 5% of the gross
proceeds received by the Corporation in connection with the Offering as
consideration for the Finder introducing the Purchaser and other Purchasers to
the Corporation.  The Purchaser
acknowledges that the Finder and its related entities and their respective
officers and directors, together hold directly or indirectly, an aggregate of
723,907 Shares and warrants entitling the holders to purchase a further
1,381,381 Shares which together as a group would represent approximately 12.3%
of the issued and outstanding Shares.  In
addition, the Purchaser acknowledges that the definitive terms and conditions
and form of the Warrants will be set forth in the Warrant Indenture (as defined
below).

 

3.                             Definitions.  In this Subscription
Agreement, unless the context otherwise requires:

 

(a)           “1933 Act” means the Securities Act of 1933, as amended, of the
United States;

 

(b)           “1934 Act” means the Securities Exchange Act of 1934, as
amended, of the United States;

 

(c)           “affiliate”, “associate”, “distribution”
and “insider” have the respective meanings
ascribed to the them in the Securities Act
(British Columbia);

 

(d)           “Closing” means the completion of
the issue and sale by the Corporation, and the purchase by the Purchasers, of
the Units;

 

(e)           “Closing Date” means September 29,
2004 or such other date as the Corporation and the Finder may agree but in any
event, such date shall be no later than October 1, 2004 without approval from
the Toronto Stock Exchange;

 

(f)            “Closing Time” means 9:00 a.m.
(Vancouver time) on the Closing Date or such other time as the Corporation and
the Finder may agree;

 

(g)           “Financial Statements”
means the
audited annual financial statements of the Corporation as at and for the year
ended December 31, 2003 and the unaudited financial statements of the
Corporation as at and for the six month period ended June 30, 2004;

 

(h)           “International
Jurisdiction” means a country other than Canada or the United
States;

 

1

 

(i)            “International
Securities Laws” means any securities laws having application to the
Purchaser and the purchase by the Purchaser of the Purchaser’s Units other than
the laws of Canada or the United States, and all regulatory notices, orders,
regulations, policies and other instruments incidental thereto;

 

(j)            “Private Placement Questionnaire and
Undertaking” means the questionnaire and undertaking required by the
Toronto Stock Exchange in the form of Schedule
“A” hereto;

 

(k)           “Public Record” means the prospectuses, annual
reports, quarterly reports, current reports, annual information forms, offering
memoranda, proxy statements, material change reports, press releases and
technical reports filed with the Toronto Stock Exchange, the American Stock
Exchange, any applicable Canadian securities regulatory authority and the SEC
on or during the 12 months preceding the date hereof;

 

(l)            “Purchaser” means the
purchaser of Units hereunder, and “Purchasers”
means all purchasers of the Units including the Purchaser hereunder;

 

(m)          “Registration Statement”
means a registration statement under the 1933 Act relating to the Shares and
the Warrant Shares;

 

(n)           “Regulation S” means
Regulation S under the 1933 Act;

 

(o)           “Reporting Province”
means the Province of British Columbia;

 

(p)           “SEC” means the United
States Securities and Exchange Commission;

 

(q)           “Securities” means
collectively, the Units, the Shares, the Warrants and the Warrant Shares;

 

(r)            “Shares” means common shares without par value in the capital
of the Corporation;

 

(s)           “Trustee” means
Computershare Trust Company of Canada;

 

(t)            “Underlying Securities”
means collectively, the Shares, the Warrants and the Warrant Shares;

 

(u)           “Unit” means one Share
and one Warrant;

 

(v)           “United States” means the United
States as that term is defined in Regulation S;

 

(w)          “U.S. Person” means a U.S. person
as that term is defined in Regulation S;

 

(x)            “Warrant Indenture”
means the indenture to be dated as of the Closing Date, and to be entered into
between the Corporation and the Trustee pursuant to which the Warrants will be
issued;

 

(y)           “Warrant Shares” means
the Shares issuable upon exercise of the Warrants in accordance with their
terms; and

 

2

 

(z)            “Warrants” means the
common share purchase warrants of the Corporation comprising part of the Units
to be issued by the Corporation hereunder and having the characteristics
described in section 4 below;

 

4.                             Warrant Indenture.  The Warrants will be
represented and governed by the Warrant Indenture.  The Warrant Indenture will contain provisions
to the following effect:

 

(a)           Right to Shares - Each
whole Warrant will be exercisable to acquire, subject to adjustment as set out
in the Warrant Indenture, one Warrant Share at any time from the Closing Date
until 4:30 p.m. (Vancouver time) on the day which is 24 months after the
Closing Date at the price of U.S.$4.75 per Warrant Share (the “Exercise Price”), subject to the Warrant
Trigger (as defined below) and the decrease to the Exercise Price as described
below.

 

                Starting six months after the date the Registration Statement is
declared effective by the SEC, if the closing trading price of the Shares on
the American Stock Exchange is U.S.$5.50 or greater for a period of 20
consecutive trading days (such event, the “Warrant
Trigger”), the Corporation will
have the option for a period of 15 business days after the end of such period
to request that the Warrants be exercised within 15 business days of the date
the Corporation provides notice that the Warrant Trigger has occurred.  If the Warrants are not exercised within 15
business days following this notice, the Warrants will expire.

 

                In the event that a Registration Statement is not declared effective
by the SEC within six months from the Closing Date (the “Registration Date”) the Exercise Price of
each outstanding Warrant shall automatically decrease to U.S.$4.25 per Warrant
Share and such Exercise Price shall be in effect until the expiry of the
Warrants.

 

(b)           Adjustment Provisions - The number of Warrant Shares issuable on the exercise of a Warrant
and the Exercise Price will be subject to adjustment in certain events,
including the subdivision, consolidation, change or reclassification of Shares,
the issue of the Shares by way of stock dividends other than dividends paid in
the ordinary course, and the distribution to all or substantially all the holders
of the Shares of rights entitling them to subscribe for or purchase Shares at a
price that is less than 95% of the then current market price of the Shares.

 

(c)           Amendment of Warrant Indenture - The Corporation and the Trustee may amend or correct the Warrant
Indenture or any supplemental indenture or the rights of the holders of the
Warrants in certain ways which, in general, do not affect the substance thereof
or do not prejudice the holders of Warrants. 
Otherwise, the Corporation and the Trustee may only amend the Warrant
Indenture or any supplemental indenture or the rights of the holders of the
Warrants with approval of the holders of the Warrants given by resolution
passed at a meeting at which a quorum is present pursuant to the terms of the
Warrant Indenture by the affirmative votes of holders of 66.67% of the Warrants
voted at the meeting or consented to in writing by the holders of 66.67% of the
Warrants then outstanding.

 

(d)           Dividends - Warrants
that are exercised will not be entitled to any cash or stock dividends or any
other distributions paid or declared but unpaid on the Shares during the period
from the Closing Date to the time of such exercise.

 

3

 

(e)           Other Provisions - The
provisions of the Warrant Indenture and the attributes and characteristics of
the Warrants represented thereby will be substantially as described herein,
with such changes thereto as the Corporation and the Finder may agree, and
otherwise the Warrant Indenture will be in such form and contain such terms and
provisions as are reasonably satisfactory to the Corporation and the Finder.

 

5.                             Delivery and Payment.  The Purchaser agrees that
the following shall be delivered to the Finder, care of Perkins Smith &
Cohen LLP at the address and by the date and time set out on the cover page
hereof, or such other place, date or time as the Finder may advise:

 

(a)           a completed and duly signed copy of this Subscription Agreement;

 

(b)           a completed and duly signed copy of a Private Placement
Questionnaire and Undertaking in the form
attached hereto as Schedule “A”;

 

(c)           a completed and duly signed copy of the Confirmation of Status as
U.S. “Accredited Investor” attached hereto as Schedule
“B”;

 

(d)           if the Purchaser is a resident of British
Columbia, a completed and duly signed copy of the
Confirmation of Status as British Columbia “Accredited Investor” attached
hereto as Schedule “C”;

 

(e)           all other documentation as may be required by applicable securities
laws; and

 

(f)            a wire transfer in United States currency made payable to the
Corporation in accordance with the
instructions provided by the Finder, representing the aggregate Purchase Price
for the Purchaser’s Units, or such other method of payment against delivery of
the Units as the Corporation may accept.

 

The Purchaser
acknowledges and agrees that such undertakings, questionnaires and other
documents, when executed and delivered by the Purchaser, will form part of and
will be incorporated into this Subscription Agreement with the same effect as
if each constituted a representation and warranty or covenant of the Purchaser
hereunder in favour of the Corporation. 
The Purchaser consents to the filing of such undertakings,
questionnaires and other documents as may be required to be filed with any
stock exchange or securities regulatory authority in connection with the
transactions contemplated hereby.

 

6.                             Closing.  The transactions contemplated hereby will be
completed at the Closing at the offices of Borden Ladner Gervais LLP in
Vancouver, British Columbia or at such other location as may be agreed to by
the Corporation and the Finder.  The
Purchaser acknowledges that the Purchaser’s Units will be available for
delivery to it at the Closing against payment of the amount of the aggregate
Purchase Price for the Purchaser’s Units.

 

7.                             Representations and Warranties of the
Corporation. 
By accepting this offer, the Corporation represents and warrants to the
Purchaser as follows:

 

(a)           the Corporation has been duly incorporated and is validly subsisting
and in good standing under the Business Corporations Act
(Yukon Territory), and has all requisite

 

4

 

corporate
power and capacity to enter into and carry out its obligations under, this
Subscription Agreement;

 

(b)           on the Closing Date, the Corporation will have taken all corporate
steps and proceedings necessary to approve the transactions contemplated
hereby, including the execution and delivery of this Subscription Agreement;

 

(c)           the outstanding Shares are listed and posted for trading on the
Toronto Stock Exchange and the American Stock Exchange;

 

(d)           no order ceasing or suspending trading in the securities of the
Corporation nor prohibiting the sale of such securities has been issued to the
Corporation or its directors, officers or promoters and, to the best of the
knowledge of the Corporation, no investigations or proceedings for such
purposes are pending or threatened;

 

(e)           prior to the Closing Date, the Corporation will have obtained all
required approvals from the Toronto Stock Exchange and the American Stock
Exchange in order to permit the completion of the transactions contemplated
hereby;

 

(f)            the Corporation is a reporting issuer in good standing under the
securities laws of the Reporting Province and is a reporting company under the
1934 Act, and no material change relating to the Corporation has occurred with
respect to which the requisite material change report has not been filed under
any applicable securities laws in the Reporting Province and no such disclosure
has been made on a confidential basis;

 

(g)           the Corporation has full corporate
power and authority to undertake the Offering, to issue the Securities, and at
the Closing Time, the Shares and the Warrants will be duly and validly created,
authorized and issued, and all Warrant Shares issuable upon exercise of the
Warrants will be duly and validly authorized, allotted and reserved for
issuance upon exercise of the Warrants and will, upon exercise of the Warrants
be issued as fully-paid and non-assessable Shares;

 

(h)            the
Corporation and its subsidiaries are the beneficial owners of or have the right
to acquire the interests in the properties, business and assets referred to in
the Public Record, and any and all agreements pursuant to which the Corporation
or its subsidiaries holds or will hold any such interests in properties,
business or assets are in good standing in all material respects according to
their terms, and the properties are in good standing in all material respects
under the applicable statues and regulations of the jurisdictions in which they
are situated;

 

(i)            the Public Record is in all
material respects accurate and omits no facts, the omission of which makes the
Public Record or any particulars therein, misleading or incorrect;

 

(j)            except as disclosed in the Public
Record, no actions, suits, inquiries or proceedings are pending or, to the
knowledge of the Corporation, are contemplated or threatened to which the
Corporation or its subsidiaries is a party or to which the property of the
Corporation or its subsidiaries is subject that would result individually or in
the aggregate in any material adverse change in the operations, business or
condition (financial or otherwise) of the Corporation or its subsidiaries;

 

5

 

(k)           the Financial Statements present
fairly, in all material respects, the financial position of the Corporation and
its subsidiaries on a consolidated basis as at the dates set out therein and
the results of their operations and the changes in their financial position for
the periods then ended, in accordance with Canadian generally accepted
accounting principles;

 

(l)            except as disclosed in the Public
Record, there has not been any material change in the assets, liabilities or
obligations (absolute, accrued, contingent or otherwise) of the Corporation or
its subsidiaries, as set forth in the Financial Statements, and there has not
been any material adverse change in the business, operations or condition
(financial or otherwise) or results of the operations of the Corporation or its
subsidiaries, since June 30, 2004 and since that date there have been no
material facts, transactions, events or occurrences which could materially
adversely affect the business of the Corporation or its subsidiaries;

 

(m)          the Corporation and its
subsidiaries have conducted and are conducting their businesses in compliance
with all applicable laws, by-laws, rules and regulations of each jurisdiction
in which their businesses are carried on and hold all licences, registrations,
permits, consents or qualifications (whether governmental, regulatory or
otherwise) required in order to enable their businesses to be carried on as now
conducted or as proposed to be conducted, and all such licences, registrations,
permits, consents and qualifications are valid and subsisting and in good
standing and neither the Corporation nor its subsidiaries has received any
notice of proceedings relating to the revocation or modification of any such
license, registration, permit, consent or qualification which, if the subject
of an unfavourable decision, ruling or finding, would materially adversely
affect the conduct of the business, operations, condition (financial or
otherwise) or income of the Corporation or its subsidiaries;

 

(n)           the Corporation has taken or will
take all steps as may be necessary for it to comply with the requirements of
the applicable securities laws of the Reporting Province and the United States,
and such other jurisdictions in which the Units are sold, and the Corporation
is entitled to avail itself of the applicable prospectus and registration
exemptions available under the applicable securities laws of the Reporting
Province and the United States in respect of the offer and sale of the Units;
and

 

(o)          the Corporation has filed all
documents that it is required to file under the continuous disclosure
provisions of applicable securities laws in Canada and the United States,
including annual and interim financial information and annual reports, press
releases disclosing material changes and material change reports, and all periodic reports required by Section 13(a)
of the 1934 Act and the rules and regulations thereunder.

 

8.                             Covenants
of the Corporation.  The Corporation covenants and agrees with the
Purchaser as follows:

 

(a)           the Corporation will use commercially reasonable efforts to have the
Registration Statement declared effective by the SEC by the Registration Date,
provided that the Corporation will in no way be liable or responsible to the
Purchaser if notwithstanding such efforts such declaration does not occur
within the foregoing time period or at all other than that, in the event that a
Registration Statement is not declared effective by the

 

6

 

Registration
Date, the Exercise Price of each outstanding Warrant shall decrease in the
manner specified in section 4(a) above;

 

(b)           the Corporation will comply with all filing and other disclosure
requirements under all applicable securities laws;

 

(c)           the Corporation will use
commercially reasonable efforts to maintain the listing of the Shares on the
Toronto Stock Exchange and the American Stock Exchange until the expiry date of
the Warrants and for a period of 12 months thereafter; and

 

(d)           the Corporation will use
commercially reasonable efforts to maintain its status as a reporting issuer
under applicable securities legislation in the Reporting Province and as a
reporting company with the SEC from the date hereof until the expiry date of the
Warrants and for a period of 12 months thereafter.

 

9.                             Conditions for the Benefit of the Purchaser.  The obligations of the
Purchaser to complete the purchase of the Purchaser’s Units as contemplated
hereby shall be conditional upon the fulfilment at or before the Closing Time,
for the exclusive benefit of the Purchaser, of each of the following
conditions:

 

(a)           the representations and warranties of the Corporation will be true
and correct in all material respects as at the Closing Date with the same force
and effect as if such representations and warranties had been made at and as of
the Closing Date;

 

(b)           the Corporation will have, in all material respects, performed and
complied with all covenants and agreements contained in this Subscription
Agreement to be performed or complied with, or caused to be performed or
complied with, by the Corporation at or prior to the Closing;

 

(c)           all necessary corporate action will have been taken by the
Corporation to authorize the execution and delivery of this Subscription
Agreement, and to consummate the transactions contemplated by this Subscription
Agreement; and

 

(d)           the
Purchaser shall have received an opinion of legal counsel to the Corporation
addressing matters related to this Subscription Agreement and the transactions
contemplated thereby, in such form as is acceptable to counsel to the Finder
acting reasonably.

 

10.                           Conditions for the Benefit of the Corporation.  The acceptance of this
offer and the obligation of the Corporation to complete the issue and sale of
the Purchaser’s Units as contemplated hereby shall be conditional upon the
fulfilment at or before the Closing Time, for the exclusive benefit of the
Corporation, of each of the following conditions:

 

(a)           the representations and warranties of the Purchaser will be true and
correct in all material respects as at the Closing Date with the same force and
effect as if such representations and warranties had been made at and as of the
Closing Date;

 

(b)           the Purchaser will have, in all material respects, performed and
complied with all covenants and agreements contained in this Subscription
Agreement to be performed or 

 

7

 

complied with,
or caused to be performed or complied with, by the Purchaser at or prior to the
Closing; and

 

(c)           all necessary corporate action, if any, will have been taken by the
Purchaser to authorize the execution and delivery of this Subscription
Agreement and to consummate the transactions contemplated by this Subscription
Agreement.

 

11.                           Acceptance or Rejection.  The Corporation will have
the right to accept or reject this offer at any time at or prior to the Closing
Time.  The Purchaser acknowledges and
agrees that the acceptance of this offer will be conditional upon the sale of
the Purchaser’s Units to the Purchaser being exempt from any prospectus or
offering memorandum requirements of all applicable securities laws.  The Corporation will be deemed to have
accepted this offer upon the Corporation’s execution of the acceptance form at
the end of this Subscription Agreement and the delivery at the Closing of the
certificates representing Shares and Warrants to, or upon the direction of, the
Purchaser.

 

12.                           Appointment of Finder.  The Purchaser (and others
for whom the Purchaser is contracting hereunder) hereby irrevocably authorizes
the Finder or the Finder’s representative:

 

(a)           to complete and correct any
information contained in this subscription, and any other document prepared by
the Purchaser in connection with the Offering, which may require completion or
correction;

 

(b)           to negotiate, settle and amend
the form of the Warrant Indenture, and any other agreement entered into or to
be entered into in connection with this transaction;

 

(c)           to negotiate and waive, in
whole or in part, or extend the time for compliance with, any of the
Corporation’s representations, warranties or covenants, or any of the closing
conditions, given or made by the Corporation for the benefit of the Purchaser,
all in such manner and on such terms and conditions as the Finder may
determine, acting reasonably, without in any way affecting the Purchaser’s
obligations or the obligations of such others hereunder;

 

(d)           to act as the Purchaser’s
representative at the Closing to, among other things, receive the legal opinion
pursuant to section 9(d) and to swear, execute and file any receipts or other
required documentation on behalf of the Purchaser; and

 

(e)           to terminate this subscription
on behalf of the Purchaser in the event that any condition precedent to the Closing
has not been satisfied by the date set therefor.

 

Although the Finder may have introduced the
Purchaser to the Corporation, the Purchaser acknowledges and agrees with, and
for the benefit of, the Finder, such acknowledgments and agreements to survive the
Closing, that:

 

(f)            the
Finder and its directors, officers, employees, agents and representatives have
no responsibility or liability of any nature whatsoever for the accuracy or
adequacy of any Public Record or other publicly available information concerning
the Corporation, or as to whether all information concerning the Corporation
that is required to be publicly disclosed by it has been generally disclosed;

 

8

 

(g)           the
Finder has not conducted any due diligence or otherwise engaged in any
independent verification or investigation with respect to the information
contained in the Public Record or any other information regarding the
Corporation, whether public or private, including the representations of the
Corporation herein; and

 

(h)           the
Finder is entitled to rely on the respective representations, statements,
covenants and answers of the Purchaser and the Corporation contained in this
subscription, and that the Purchaser will hold harmless the Finder and the
Corporation from any loss or damage they may suffer whatsoever as a result of
the Purchaser’s failure to accurately complete any of the information required
to be completed by the Purchaser herein.

 

13.                           Purchaser’s Acknowledgements. The
Purchaser acknowledges and agrees that as the sale of the Purchaser’s Units
will not be qualified by a prospectus, such sale is subject to the condition
that the Purchaser (or, if applicable, any others for whom the Purchaser is
contracting hereunder) sign and return to the Corporation all relevant
documentation required by applicable Canadian and United States securities laws
and the rules, regulations and policies of the Toronto Stock Exchange and the
American Stock Exchange.  The Purchaser acknowledges and agrees that the
Corporation may be required to provide to applicable securities regulatory
authorities the identities of the beneficial purchasers of the Units and will
be required to provide the Toronto Stock Exchange the identities of all persons
having a greater than 10% beneficial interest in the Purchaser.  Notwithstanding that the Purchaser may be
purchasing Units as an agent on behalf of an undisclosed principal, the
Purchaser agrees to provide, on request, particulars as to the identity of such
undisclosed principal as may be required by the Corporation in order to comply
with the foregoing.

 

In addition, the Purchaser acknowledges:

 

(a)           no securities commission or other regulatory authority has reviewed
or passed upon the merits of the Securities;

 

(b)           there is no government or other insurance covering the Securities;

 

(c)           there are risks,
including those set forth in the Public Record, associated with the purchase of
the Securities;

 

(d)           there are restrictions on the
Purchaser’s ability to resell the Securities and it is the responsibility of
the Purchaser to find out what those restrictions (whether U.S., Canadian or
otherwise) are and to comply with them before selling the Securities;

 

(e)           the Corporation has advised the Purchaser that it is relying on an
exemption from the requirements under applicable securities laws to provide the
Purchaser with a prospectus and to sell the Securities through a person
registered to sell securities under the applicable securities laws, and other
applicable legislation, and that as a consequence of acquiring these securities
pursuant to these exemptions, certain protections, including statutory rights
of rescission or damages, will not be available to the Purchaser;

 

(f)           none of the Securities to be issued and delivered to
the Purchaser hereunder have been registered under the 1933 Act, and
accordingly the Securities are subject to restrictions on transferability and
resale and may not be offered, sold, gifted, pledged, hypothecated,
transferred, assigned or otherwise disposed of unless registered under the 1933
Act or pursuant to an exemption from the registration requirements of the 1933
Act.  The

 

9

 

certificates representing the Warrants shall bear the
following legend, which legend shall remain on the said certificates until
compliance with the terms thereof:

 

“UNLESS
PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY
MUST NOT TRADE THE SECURITY BEFORE [INSERT THE DATE THAT IS FOUR MONTHS AFTER
THE CLOSING DATE].

 

NEITHER THIS
CERTIFICATE NOR THE SECURITIES REPRESENTED HEREBY NOR ANY SECURITIES ISSUABLE
UPON THE EXERCISE OF SUCH SECURITIES, NOR ANY INTEREST IN OR RIGHTS UNDER SAME,
HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE, AND NEITHER THIS
CERTIFICATE NOR THE SECURITIES REPRESENTED HEREBY NOR ANY SECURITIES ISSUABLE
UPON THE EXERCISE OF SUCH SECURITIES, NOR ANY INTEREST IN OR RIGHTS UNDER SAME,
MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED
OR DISPOSED OF WITHOUT (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
AND APPLICABLE UNITED STATES STATE SECURITIES LAWS COVERING ANY SUCH
TRANSACTION, (B) RECEIPT BY THE CORPORATION OF AN ACCEPTABLE LEGAL OPINION
STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THE
CORPORATION OTHERWISE SATISFYING ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION .”,

 

and the
certificates representing the Shares and the Warrant Shares shall bear the
following legend, which legend shall remain on the said certificates until
compliance with the terms thereof, provided that if Warrant Shares are not
issued within four months of the Closing Date the first paragraph of the
following legend shall not appear on the certificates representing the Warrant
Shares:

 

“UNLESS
PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY
MUST NOT TRADE THE SECURITY BEFORE [INSERT THE DATE THAT IS FOUR MONTHS AFTER
THE CLOSING DATE]

 

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
LAW.  NO INTEREST THEREIN MAY BE SOLD,
DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED OR DISPOSED OF
WITHOUT (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
UNITED STATES STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION, (B) RECEIPT
BY THE CORPORATION OF AN ACCEPTABLE LEGAL OPINION

 

10

 

STATING THAT
SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THE CORPORATION OTHERWISE
SATISFYING ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.”;

 

(g)           the first trade in British Columbia of
the Securities acquired by the Purchaser may only be made in accordance with
the following rules:

 

(i)            the Corporation is and has been a reporting issuer in a jurisdiction
of Canada for the four months immediately preceding the trade;

 

(ii)           at least four months have elapsed from the distribution date of the
Units;

 

(iii)          the certificates representing the Securities were issued carrying
the legend as required in section 2.5(2)3(a) of Canadian Multilateral
Instrument 45-102 Resale of Securities (“MI 45-102”);

 

(iv)          the trade is not a “control distribution” within the meaning of MI
45-102;

 

(v)           no unusual effort is made to prepare the
market or to create a demand for the Securities;

 

(vi)          no extraordinary commission or other
consideration is paid in respect of the trade, and

 

(vii)         if the Purchaser is an insider of the
Corporation, the Purchaser has no reasonable grounds to believe that the
Purchaser is in default of any securities laws.

 

14.                           Purchaser’s Representations and Warranties.  The Purchaser represents
and warrants to the Corporation, as representations and warranties that are
true as of the date of this offer and will be true as of the Closing Date,
that:

 

(a)           Authorization and Effectiveness - if the Purchaser is a
corporation, the Purchaser is a valid and subsisting corporation,
has the necessary corporate capacity and authority to execute and deliver this
offer and to observe and perform its covenants and obligations hereunder and
has taken all necessary corporate action in respect thereof, or, if the Purchaser is a partnership, syndicate or other
form of unincorporated organization, the Purchaser has the necessary
legal capacity and authority to execute and deliver this offer and to observe
and perform its covenants and obligations hereunder and has obtained all necessary
approvals in respect thereof, and, in either case, upon acceptance by the
Corporation, this offer will constitute a legal, valid and binding contract of
the Purchaser enforceable against the Purchaser in accordance with its terms;

 

(b)           Residence - the Purchaser
is a resident of the jurisdiction referred to under “Name and Address of
Purchaser” on the cover page hereof;

 

(c)           Purchasing as Principal - except to the extent contemplated in paragraph (e) below,
the Purchaser is purchasing the Purchaser’s Units as principal (as defined in
all applicable securities laws) for its own account and not for the benefit of
any other person;

 

(d)           Purchasing for Investment Only - except to the extent contemplated in paragraph (e) below, the
Purchaser is purchasing the Purchaser’s Units for investment only and not

 

11

 

with a view to
any resale, distribution or other disposition in violation of Canadian, United
States federal or state, or other securities laws;

 

(e)           Purchasing as Agent or Trustee - in the case of the purchase by
the Purchaser of the Purchaser’s Units as agent or trustee for any principal,
each beneficial purchaser of the Purchaser’s Units for whom the Purchaser is
acting, is purchasing its Purchaser’s Units as principal for its own account,
and not for the benefit of any other person, for investment only and not with a
view to any resale, distribution or other disposition, and the Purchaser has
due and proper authority to act as agent or trustee for and on behalf of such
beneficial purchaser in connection with the transactions contemplated hereby;

 

(f)            Purchaser Has Benefit of Statutory or Other
Exemptions - the Purchaser, and any beneficial
purchaser referred to in paragraph (e) above, is an “accredited investor”
within the meaning of Rule 501(a) of Regulation D under the 1933 Act (and has
initialled and executed Schedule “B”
hereto to confirm its representation and warranty regarding the specific
category or categories under which it so qualifies), and

 

(i)            if resident in British Columbia, is an “accredited investor” within the meaning of Multilateral
Instrument 45-103 Capital Raising Exemptions
(“MI 45-103”) (and has completed
and duly signed Schedule “C”
hereto to confirm its representation and warranty regarding the specific
category or categories under which it so qualifies),

 

(ii)           if resident in an International
Jurisdiction

 

(A)          is knowledgeable of, or has been independently advised as to, the
International Securities Laws, if any, which apply to the Purchaser and the
purchase by the Purchaser of the Purchaser’s Units (and the issuance of the
Underlying Securities),

 

(B)           is purchasing the Purchaser’s Units pursuant to an exemption from
any prospectus, registration or similar requirements under International
Securities Laws, or, if such is not applicable, the Purchaser is permitted to
purchase the Purchaser’s Units under International Securities Laws without the
need to rely on exemptions,

 

(C)           International Securities Laws do not (or will not) require the Corporation
to make any filings or seek any approvals of any kind whatsoever from any
regulatory authority of any kind whatsoever in the International Jurisdiction
with respect to the purchase by the Purchaser of the Purchaser’s Units (or the
issuance to the Purchaser of the Purchaser’s Units or the Underlying
Securities), and

 

(D)          the distribution of the Units (and the Underlying Securities) to the
Purchaser by the Corporation complies (or will comply) with all International
Securities Laws;

 

(iii)           has status as an exempt purchaser or the equivalent
under the securities legislation applicable to it, which status has the effect
of eliminating any requirement for a prospectus (or equivalent document) in
respect of the purchase

 

12

 

of Units by the Purchaser and
has provided the Corporation with a copy of the document evidencing or
confirming such status; or

 

(iv)          is purchasing pursuant to a statutory, regulatory or
other exemption, or an exemption order permitting such purchase, which
exemption or order has the effect of eliminating any requirement for a
prospectus (or equivalent document) or the involvement of a registrant in
respect of the purchase of Units by the Purchaser and has provided the Corporation with a copy of the document
evidencing such exemption or exemption order;

 

(g)           Corporation or Unincorporated Organization - if the Purchaser, or any
beneficial purchaser referred to in paragraph (e) above, is a corporation
or a partnership, syndicate, trust or other form of unincorporated organization
and resident in
British Columbia, each member thereof is an “accredited investor” within
the meaning of Multilateral Instrument 45-103 Capital
Raising Exemptions;

 

(h)           Absence of Advertising
- the offering and sale of the Purchaser’s Units to the Purchaser were not made
or solicited through, and the Purchaser is not aware of, any advertisement of
the Units in printed public media, radio, television or telecommunications,
including electronic display (such as the Internet), or any other advertisement
or general solicitation with respect to the Units including any as contemplated
under Rule 502(c) under the 1933 Act;

 

(i)            No Undisclosed Information - the Purchaser’s Units are not being purchased by the Purchaser as
a result of any material information concerning the Corporation that has not
been publicly disclosed and the Purchaser’s decision to tender this offer and
acquire the Purchaser’s Units has not been made as a result of any oral or
written representation as to fact or otherwise made by or on behalf of the
Corporation or any other person and is based entirely upon currently available
public information concerning the Corporation;

 

(j)            Opportunity to Ask Questions – the Purchaser, and any beneficial purchaser referred to in
paragraph (e) above, has been afforded by the Corporation the opportunity
to ask questions and receive answers concerning the terms and conditions of the
Offering and verification of the accuracy of the currently available public
information concerning the Corporation;

 

(k)           Investment Suitability
- the Purchaser, and any beneficial purchaser referred to in paragraph (e)
above, has such knowledge and experience in financial and business affairs as
to be capable of evaluating the merits and risks of the investment hereunder in
the Purchaser’s Units (and the Underlying Securities) and is able to bear the
economic risk of loss of such investment;

 

(l)            Purchaser at Arm’s Length to Corporation – the Purchaser, and any beneficial purchaser referred to in paragraph
(e) above, is not a director or officer of the Corporation or any affiliate or
associate thereof, does not beneficially own, directly or indirectly, more than
10% of the Shares of the Corporation or any affiliate or associate thereof, and
is otherwise at arm’s length to the Corporation and its affiliates and
associates;

 

13

 

(m)          Source of Subscription Funds –

 

(i)            to the
best of the Purchaser’s knowledge, none of the subscription funds used for the purchase
of the Purchaser’s Units (the “Subscription
Funds”) (A) have been or will be derived from or related to any
activity that is deemed criminal under the laws of Canada, the United States,
or any other jurisdiction, or (B) are being tendered on behalf of a person or
entity who has not been identified to the Purchaser, and

 

(ii)           the
Purchaser shall promptly notify the Corporation if the Purchaser discovers that
any of the representations in paragraph (m)(i) above ceases to be true, and to
provide the Corporation with appropriate information in connection therewith;
and

 

(n)           Compliance with Anti-Money Laundering
Legislation – if the Purchaser is a financial
institution (including, without limitation, broker-dealers and investment
companies such as United States and offshore unregistered hedge funds,
funds-of-funds, commodity pools, private equity funds and venture capital
funds):

 

(i)            it
seeks to comply with all applicable laws concerning money laundering and
related activities, including without limitation, the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
of the United States (popularly known as the “USA
Patriot Act”),

 

(ii)           in
furtherance of such efforts, to the best of its knowledge based on appropriate
diligence and investigation, none of the Subscription Funds has been or will be
derived from or related to any activity that is deemed criminal under the laws
of Canada or the United States, and

 

(iii)          it will promptly notify the Corporation if the Purchaser discovers
that any of the representations in this paragraph (n) ceases to be true, and to
provide the Corporation with appropriate information in connection therewith.

 

The Purchaser
acknowledges and agrees that the foregoing representations and warranties are
made by it with the intention that they may be relied upon in determining its
eligibility or (if applicable) the eligibility of others on whose behalf it is
contracting hereunder to purchase the Purchaser’s Units under relevant
securities legislation.  The Purchaser
further agrees that by accepting delivery of the Purchaser’s Units on the
Closing Date, it will be representing and warranting that the foregoing
representations and warranties are true and correct as at the Closing Date with
the same force and effect as if they had been made by the Purchaser at the time
of the Closing and that they will survive the purchase by the Purchaser of the
Purchaser’s Units and will continue in full force and effect notwithstanding any
subsequent disposition by the Purchaser of the Purchaser’s Units.

 

15.                           No Investigation by Finder.  The Purchaser acknowledges
and agrees that the Finder assumes no responsibility or liability of any nature
whatsoever for the accuracy or adequacy of any publicly available information
concerning the Corporation or as to whether all information concerning the
Corporation required to be disclosed by the Corporation has been generally
disclosed.  The Purchaser further
acknowledges and agrees that the Finder has not engaged in or conducted any
independent investigation with respect to the Corporation or any such
information.

 

14

 

16.                           Resale Restrictions.  The Purchaser understands
and acknowledges that the Purchaser’s Units and Underlying Securities will be
subject to certain resale restrictions under applicable securities laws and the
Private Placement Questionnaire and Undertaking and the Purchaser agrees to
comply with such restrictions.  The
Purchaser also acknowledges that it has been advised to consult its own legal
advisors with respect to applicable resale restrictions and that it is solely
responsible (and neither the Corporation nor the Finder are in any manner
responsible) for complying with such restrictions.

 

17.                           No Revocation.  The Purchaser agrees that this offer is made
for valuable consideration and may not be withdrawn, cancelled, terminated or
revoked by the Purchaser.

 

18.                           Indemnity.  The Purchaser agrees to indemnify and hold
harmless the Corporation and the Finder and their directors, officers,
employees, agents, advisers and shareholders from and against any and all loss,
liability, claim, damage and expense whatsoever (including, but not limited to,
any and all fees, costs and expenses whatsoever reasonably incurred in
investigating, preparing or defending against any claim, law suit,
administrative proceeding or investigation whether commenced or threatened)
arising out of or based upon any representation or warranty of the Purchaser
contained herein or in any document furnished by the Purchaser to the
Corporation or the Finder in connection herewith being untrue in any material
respect or any breach or failure by the Purchaser to comply with any covenant
or agreement made by the Purchaser herein or in any document furnished by the
Purchaser to the Corporation or the Finder in connection herewith.

 

19.                           Modification.
Neither this Subscription Agreement nor any provision hereof shall be modified,
changed, discharged or terminated except by an instrument in writing signed by
the party against whom any waiver, change, discharge or termination is
sought.  Notwithstanding the foregoing,
the Purchaser hereby constitutes the Corporation as its agent to correct, on
behalf of the Purchaser, any manifest errors or typographical errors contained
herein.

 

20.                           Assignment.  The terms and provisions of this Subscription
Agreement shall be binding upon and enure to the benefit of the Purchaser, the
Corporation and their respective successors and assigns; provided that, except
as herein provided, this Subscription Agreement shall not be assignable by any
party without the prior written consent of the other parties.  The benefit and obligations of this
Subscription Agreement insofar as they apply to the Purchaser, shall pass with
any assignment or transfer of the Shares and Warrants in accordance with their
terms.

 

21.                           Miscellaneous.  All representations, warranties, agreements
and covenants made or deemed to be made by the Purchaser herein will survive
the execution and delivery, and acceptance, of this offer and the Closing. This
Subscription Agreement may be executed in any number of counterparts, each of
which when delivered, either in original or facsimile form, shall be deemed to
be an original and all of which together shall constitute one and the same
document.

 

22.                           Governing Law.  This Subscription Agreement
shall be governed by and construed in accordance with the laws of the Province
of British Columbia and the federal laws of Canada applicable therein.  The Purchaser on its own behalf and, if
applicable, on behalf of others for whom it is contracting hereunder, hereby
irrevocably attorns to the jurisdiction of the courts of the Province of
British Columbia with respect to any matters arising out of this Subscription
Agreement.

 

23.                           Facsimile Subscriptions.  The Corporation shall be
entitled to rely on delivery by facsimile machine of an executed copy of this
Subscription Agreement, including the completed schedules hereto, and
acceptance by the Corporation of such facsimile copy shall be legally effective
to

 

15

 

create a valid
and binding agreement between the Purchaser and the Corporation in accordance
with the terms hereof.

 

24.                           Entire Agreement and Headings.  This Subscription Agreement
(including the schedules hereto) contains the entire agreement of the parties
hereto relating to the subject matter hereof and there are no representations,
covenants or other agreements relating to the subject matter hereof except as
stated or referred to herein.  This
Subscription Agreement may be amended or modified in any respect by written
instrument only.  The headings contained
herein are for convenience only and shall not affect the meanings or
interpretation hereof.

 

25.                           Time of Essence.  Time shall be of the essence
of this Subscription Agreement.

 

26.                           Effective Date.  This Subscription Agreement
is intended to and shall take effect on the Closing Date, notwithstanding its
actual date of execution or delivery by any of the parties.

 

IN WITNESS
WHEREOF the undersigned has executed this Subscription Agreement on the          
day of                               ,
2004.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  Signature of Purchaser (if an individual)

  	
  Name of Purchaser (if not an individual)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
  Name of Purchaser (if an individual)

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

ACCEPTANCE

 

The foregoing
is acknowledged, accepted and agreed to this        
day of                       ,
2004.

 

 

	
   

  	
  VISTA GOLD CORP.

  
	
   

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

16

 

SCHEDULE
“A”

 

TORONTO
STOCK EXCHANGE

 

PRIVATE
PLACEMENT QUESTIONNAIRE AND UNDERTAKING

 

To be
completed by each proposed private placement purchaser of listed securities or
securities which are convertible into listed securities.

 

QUESTIONNAIRE

 

1.             DESCRIPTION
OF TRANSACTION

 

(a)           Name of issuer of the Securities

 

VISTA
GOLD CORP.

 

(b)           Number and Class of Securities to be Purchased

 

                                 
Units (each Unit consisting of one common share and one warrant)

 

(c)           Purchase Price

 

U.S.$3.30
per Unit

 

2.             DETAILS
OF PURCHASER

 

(a)           Name of Purchaser

 

                                                                                                                                                             

(b)           Address

 

 

(c)           Names and addresses of persons having a greater than 10% beneficial
interest in the purchaser

 

 

 

A-1

 

3.             RELATIONSHIP
TO ISSUER

 

(a)           Is the purchaser (or any person named in response to 2(c) above) an
insider of the issuer for the purposes of the Ontario Securities Act (before giving effect to
this private placement)?  If so, state
the capacity in which the purchaser (or person named in response to 2(c))
qualifies as an insider

 

                                                                                                                                                             

                                                                                                                                                             

                                                                                                                                                             

(b)           If the answer to (a) is “no”, are the purchaser and the issuer
controlled by the same person or company? 
If so, give details

 

                                                                                                                                                             

                                                                                                                                                             

                                                                                                                                                             

 

4.             DEALINGS
OF PURCHASER IN SECURITIES OF THE ISSUER

 

Give details
of all trading by the purchaser, as principal, in the securities of the issuer
(other than debt securities which are not convertible into equity securities),
directly or indirectly, within the 60 days preceding the date hereof

 

                                                                                                                                                                           

                                                                                                                                                                           

                                                                                                                                                                           

 

A-2

 

UNDERTAKING

 

 

TO:         Toronto Stock Exchange

 

The
undersigned has subscribed for and agreed to purchase, as principal, the
securities described in item 1 of this Private Placement Questionnaire and
Undertaking.

 

The
undersigned undertakes not to sell or otherwise dispose of any of the said
securities so purchased or any securities derived therefrom for a period of
four months from the date of the closing of the transaction herein or for such
period as is prescribed by applicable securities legislation, whichever is
longer, without the prior consent of the Toronto Stock Exchange and any other
regulatory body having jurisdiction.

 

Dated at                                            
this         day of                          ,
2004.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name of
  Purchaser - please print)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Authorized
  Signatory)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Official
  Capacity - please print)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (please
  print name of individual whose signature

  appears above, if different from name of purchaser

  printed above)

  

 

A-3

 

Schedule “B”

 

- Confirmation of Status as U.S. “Accredited Investor”

(within the meaning of Rule 501(a) of Regulation D under the United States Securities Act of 1933)

 

By initialling
where indicated below, the Purchaser is confirming its representation and
warranty regarding the category or categories under which it qualifies as an “accredited
investor” within the meaning of Rule 501(a) of Regulation D under the United
States Securities Act of 1933:

 

[MARK BELOW THE CATEGORY OR CATEGORIES WHICH DESCRIBES YOU]

 

 

	
  (a)

  	
  Natural
  Person - Net Worth Test. The Purchaser is a natural person whose total personal net worth,
  either individually or jointly with such person’s spouse, at the time of his
  purchase, exceeds U.S.$1,000,000.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  Natural
  Person - Income Test. The Purchaser is a natural
  person who had individual income in excess of U.S.$200,000, or joint income
  with the person’s spouse in excess of U.S.$300,000, in each of the two most
  recent years and reasonably expects to reach the same income level in the
  current year.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (c)

  	
  Business
  and Non-profit Entities. The Purchaser is
  an organization described in section 501(c)(3) of the United States Internal
  Revenue Code, a corporation, a Massachusetts or similar business trust or a
  partnership, none of which has been formed for the specific purpose of
  acquiring the Units, and each having total assets in excess of
  U.S.$5,000,000.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (d)

  	
  Bank. The Purchaser is a bank as defined in section 3(a)(2) of the
  United States Securities Act of 1933
  or a savings and loan association or other institution specified in section
  3(a)(5)A of the United States Securities
  Act of 1933 whether acting in its individual or fiduciary
  capacity.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (e)

  	
  Broker
  or Dealer. The Purchaser is a broker or
  dealer registered pursuant to section 15 of the United States Securities Exchange Act of 1934.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (f)

  	
  Public
  Employee Plan. The Purchaser is a plan
  established and maintained by a state, its political subdivisions, or any
  agency or instrumentality of a state or its political subdivisions, for the
  benefit of its employees, if such plan has total assets in excess of U.S.$5,000,000.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (g)

  	
  Employee
  Benefit Plan. The Purchaser is an employee
  benefit plan within the meaning of Title I of the United States Employee Retirement Income Security Act of 1974,
  if the investment decision is made by a plan fiduciary, as defined in section
  3(21) of such act, which is either a bank, savings and loan association,
  insurance company or registered investment adviser or if the employee benefit
  plan has total assets in excess of U.S.$5,000,000 or, if a self-directed
  plan, with investment decisions made solely by persons that are accredited
  investors.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (h)

  	
  Trust. The Purchaser is a trust, with total assets in excess of
  U.S.$5,000,000, not formed for the specific purpose of acquiring the
  securities offered, whose purchase is directed by a sophisticated person as
  described in Rule 506(b)(2)(ii) of Regulation D under the United States Securities Act of 1933.

  	
  o

  

 

B-1

 

	
  (i)

  	
  Insurance
  Company. The Purchaser is an insurance
  company as defined in section 2(13) of the United States Securities Act of 1933.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (j)

  	
  Investment
  Company. The Purchaser is an investment
  company registered under the United States Investment
  Company Act of 1940 or a business development company as defined
  in section 2(a)(48) of that Act.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (k)

  	
  SBIC. The Purchaser is a Small Business Investment Company licensed by
  the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (l)

  	
  Private
  Business Development Company. The
  Purchaser is a private business development company as defined in section
  202(a)(22) of the United States Investment
  Advisers Act of 1940.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (m)

  	
  Director
  or Officer. The Purchaser is a director or
  an executive officer of the Corporation.

  	
  o

  
	
   

  	
   

  	
   

  
	
  (n)

  	
  Entity
  Owned by Accredited Investors. The
  Purchaser is an entity in which all of the equity owners are accredited
  investors and described in one or more of the categories set forth in
  paragraphs (a) through (m) above.

  	
  o

  

 

 

DATED                                 ,
2004

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature of
  Purchaser

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name of
  Purchaser

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address of
  Purchaser

  

 

B-2

 

Schedule “C”

 

- Confirmation of Status as British Columbia “Accredited
Investor”

(within the meaning of Multilateral Instrument 45-103 Capital Raising Exemptions)

 

By initialling
where indicated below, the Purchaser is confirming its representation and
warranty regarding the category or categories under which it qualifies as an “accredited
investor” within the meaning of Multilateral Instrument 45-103 Capital Raising Exemptions:

 

[MARK BELOW THE CATEGORY OR CATEGORIES WHICH DESCRIBES YOU]

 

 

All
monetary references are in Canadian Dollars.

 

	
  o 1.

  	
  A Canadian
  financial institution, or an authorized foreign bank listed in Schedule III
  of the Bank Act (Canada).

  
	
   

  	
   

  
	
  o 2.

  	
  The Business
  Development Bank of Canada incorporated under the Business
  Development Bank of Canada Act (Canada).

  
	
   

  	
   

  
	
  o 3.

  	
  An
  association under the Cooperative Credit
  Associations Act (Canada) located in Canada or a central
  co-operative credit society for which an order has been made under subsection
  473(1) of that Act.

  
	
   

  	
   

  
	
  o 4.

  	
  A subsidiary
  of any person or company referred to in paragraphs (1) to (3), if the person
  or company owns all of the voting securities of the subsidiary, except the
  voting securities required by law to be owned by directors of that
  subsidiary.

  
	
   

  	
   

  
	
  o 5.

  	
  A person or
  company registered under the securities legislation of a jurisdiction of
  Canada, as an adviser or dealer, other than a limited market dealer
  registered under the Securities Act
  (Ontario) or the Securities Act
  (Newfoundland and Labrador).

  
	
   

  	
   

  
	
  o 6.

  	
  An
  individual registered or formerly registered under the securities legislation
  of a jurisdiction of Canada, as a representative of a person or company
  referred to in paragraph (5).

  
	
   

  	
   

  
	
  o 7.

  	
  The
  government of Canada or a jurisdiction of Canada, or any crown corporation,
  agency or wholly-owned entity of the government of Canada or a jurisdiction
  of Canada.

  
	
   

  	
   

  
	
  o 8.

  	
  A municipality,
  public board or commission in Canada.

  
	
   

  	
   

  
	
  o 9.

  	
  Any
  national, federal, state, provincial, territorial or municipal government of
  or in any foreign jurisdiction, or any agency of that government.

  
	
   

  	
   

  
	
  o 10.

  	
  A pension
  fund that is regulated by either the Office of the Superintendent of
  Financial Institutions (Canada) or a pension commission or similar regulatory
  authority of a jurisdiction of Canada.

  

 

C-1

 

	
  o 11.

  	
  An
  individual who, either alone or with a spouse, beneficially owns, directly or
  indirectly, financial assets having an aggregate realizable value that before
  taxes, but net of any related liabilities, exceeds $1,000,000.

  
	
   

  	
   

  
	
  o 12.

  	
  An
  individual whose net income before taxes exceeded $200,000 in each of the two
  most recent years or whose net income before taxes combined with that of a
  spouse exceeded $300,000 in each of the two most recent years and who, in
  either case, reasonably expects to exceed that net income level in the
  current year.

  
	
   

  	
   

  
	
  o 13.

  	
  A person or
  company, other than a mutual fund or non-redeemable investment fund, that,
  either alone or with a spouse, has net assets of at least $5,000,000, and
  unless the person or company is an individual, that amount is shown on its
  most recently prepared financial statements.

  
	
   

  	
   

  
	
  o 14.

  	
  A mutual
  fund or non-redeemable investment fund that, in the local jurisdiction,
  distributes its securities only to persons or companies that are accredited
  investors.

  
	
   

  	
   

  
	
  o 15.

  	
  A mutual
  fund or non-redeemable investment fund that, in the local jurisdiction, is
  distributing or has distributed its securities under one or more prospectuses
  for which the regulator has issued receipts.

  
	
   

  	
   

  
	
  o 16.

  	
  A trust
  company or trust corporation registered or authorized to carry on business
  under the Trust and Loan Companies Act
  (Canada) or under comparable legislation in a jurisdiction of Canada or a
  foreign jurisdiction, trading as a trustee or agent on behalf of a fully
  managed account.

  
	
   

  	
   

  
	
  o 17.

  	
  A person or
  company trading as agent on behalf of a fully managed account if that person
  or company is registered or authorized to carry on business under the
  securities legislation of a jurisdiction of Canada or a foreign jurisdiction
  as a portfolio manager or under an equivalent category of adviser or is
  exempt from registration as a portfolio manager or the equivalent category of
  adviser.

  
	
   

  	
   

  
	
  o 18.

  	
  A registered
  charity under the Income Tax Act
  (Canada) that, in regard to the trade, has obtained advice from an
  eligibility adviser or other adviser registered to provide advice on the
  securities being traded.

  
	
   

  	
   

  
	
  o 19.

  	
  An entity
  organized in a foreign jurisdiction that is analogous to any of the entities
  referred to in paragraphs (1) through (5) and paragraph (10) in form and
  function.

  

 

C-2

 

	
  o 20.

  	
  A person or
  company in respect of which all of the owners of interests, direct or
  indirect, legal or beneficial, except the voting securities required by law
  to be owned by directors, are persons or companies that are accredited
  investors.

  

 

Note:      A summary of the meanings of some of the terms used in this
certificate follows the signature block below.

 

 

DATED                                 ,
2004

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature of
  Purchaser

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name of
  Purchaser

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address of
  Purchaser

  

 

 

For the purposes of this certificate, the following definitions
are included for convenience:

 

(a)           “eligibility adviser”
means

 

(i)            an
investment dealer or equivalent category of registration, registered under the
securities legislation of the jurisdiction of a purchaser and authorized to
give advice with respect to the type of security being distributed, and

 

(ii)           in
Saskatchewan or Manitoba, also means a lawyer who is a practicing member in
good standing with a law society of a jurisdiction of Canada or a public
accountant who is a member in good standing of an institute or association of
chartered accountants, certified general accountants or management accountants
in a jurisdiction of Canada provided that the lawyer or public accountant:

 

(A)          does
not have a professional, business or personal relationship with the issuer, or
any of its directors, senior officers, founders or control persons, and

 

(B)           has
not acted for or been retained personally or otherwise as an employee, senior
officer, director, associate or partner of a person or company that has acted
for or been retained by the issuer or any of its directors, senior officers,
founders or control persons within the previous year;

 

(b)           “financial assets”
means cash and securities;

 

(c)           “founder”, in respect
of an issuer, means a person or company who,

 

(i)            acting
alone, in conjunction or in concert with one or more other persons or
companies, directly or indirectly, takes the initiative in founding, organizing
or substantially reorganizing the business of the issuer, and

 

C-3

 

(ii)           at
the time of the proposed trade, is actively involved in the business of the
issuer;

 

(d)           “fully managed account”
means an account for which a person or company makes the investment decisions
if that person or company has full discretion to trade in securities for the
account without requiring the client’s express consent to a transaction;

 

(e)           “individual” means a
natural person, but does not include

 

(i)            a
partnership, unincorporated association, unincorporated syndicate,
unincorporated organization or a trust, or

 

(ii)           a
natural person in the person’s capacity as trustee, executor, administrator or
other legal representative;

 

(f)            “mutual fund” includes
an issuer of securities that entitles the holder to receive on demand or within
a specified period after demand, an amount computed by reference to the value
of a proportionate interest in the whole or in part of the net assets,
including a separate fund or trust account, of the issuer of the securities;

 

(g)           “non-redeemable investment fund”
means an issuer,

 

(i)            whose contribution of security holders are pooled for investment,

 

(ii)           where security holders do not have day-to-day control over the
management and investment decisions of the issuer, whether or not they have the
right to be consulted or to give directions, and

 

(iii)          whose securities do not entitle the security holder to receive on
demand, or within a specified period after demand, an amount computed by
reference to the value of a proportionate interest in the whole or in part of
the net assets of the issuer; and

 

(h)           “related liabilities”
means:

 

(i)            liabilities incurred or assumed for the purpose of financing the
acquisition or ownership of financial assets; or

 

(ii)           liabilities that are secured by financial assets.

 

C-4Exhibit 10.3

 

 AIA Document G701-2001

Change Order

 

	
  Owner

  	
  ý

  
	
  Architect

  	
  ý

  
	
  Contractor

  	
  ý

  
	
  Field

  	
  ý

  
	
  Other

  	
  o

  

 

	
  PROJECT (Name and address)

  	
  CHANGE
  ORDER NUMBER:

  	
  001

  
	
   

  	
  HARD
  ROCK HOTEL & CASINO

  	
   

  	
   

  
	
   

  	
  777 BEACH
  BOULEVARD

  	
  DATE:

  	
  October 7,
  2004

  
	
   

  	
  BILOXI, MS
  39530

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TO
  CONTRACTOR (Name and address)

  	
  ARCHITECT’S
  PROJECT NO

  	
  23020

  
	
   

  	
  ROY
  ANDERSON CORP

  	
  CONTRACT
  DATE:

  	
  December 24, 2003

  
	
   

  	
  PO BOX 2

  	
  CONTRACT
  FOR

  	
  Hard Rock Construction

  
	
   

  	
  GULFPORT, MS
  39502

  	
   

  	
   

  
						

 

THE
CONTRACT IS CHANGED AS FOLLOWS

 

Drywall and EIFS
changes to accommodate the finalized Architectural design for each area

 

	
  1  Casino

  	
   

  	
  894,631

  	
   

  
	
  •
  Revised Buffet layout to a station type configuration

  	
   

  	
   

  	
   

  
	
  •
  Revised Casino, Steak House, High Limit and Buffet Ceiling design

  	
   

  	
   

  	
   

  
	
  •
  Added program space for 24/7 Dinner

  	
   

  	
   

  	
   

  
	
  •
  Revised Center Bar Design

  	
   

  	
   

  	
   

  
	
  • Premium
  for labor requirement (Drywall portion only no EIFS)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2  Lowrise
  Building

  	
   

  	
  1,796,392

  	
   

  
	
  • Revised
  design for Pool club, VIP Lounge, Green Rooms, Warehouse Spaces, Mech and
  Elec Spaces

  	
   

  	
   

  	
   

  
	
  •
  Additional 31,000 sf of program spaces for BOH, Retail, Restaurant, Spa,
  Office, Mech, Elec & Misc. support

  	
   

  	
   

  	
   

  
	
  • Build out Executive Office Spaces and added
  load bearing walls requirement at Spa and Office area

  	
   

  	
   

  	
   

  
	
  •
  Revised ceiling design at various Lowrise area with greater detailing and
  elevation changes

  	
   

  	
   

  	
   

  
	
  •
  Premium for labor requirement (Drywall portion only no EIFS)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3  Hotel

  	
   

  	
  241,351

  	
   

  
	
  •
  Additional 10 typical guestrooms and 2 suites

  	
   

  	
   

  	
   

  
	
  •
  Typical guestroom and hallway design changes

  	
   

  	
   

  	
   

  
	
  •
  Premium for labor requirement (Drywall portion only no EIFS)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4  Additional
  concrete formwork scope at Parking Garage

  	
   

  	
  74,141

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5  Additional
  concrete formwork scope at the Hotel

  	
   

  	
  241,296

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6  Additional
  concrete formwork scope at the Lowrise and Casino

  	
   

  	
  174,037

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7  Additional
  operators requirement

  	
   

  	
  152,401

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8  Additional
  doors, frames and hardware to accommodate the added program spaces and design
  revisions.

  	
   

  	
  66,684

  	
   

  
	
  Total

  	
   

  	
  3,640,933

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  
	
  The original Contract Sum Was

  	
   

  	
  $

  	
  81,957,183

  	
   

  
	
  The Net Change By Previously Authorized
  Change Orders

  	
   

  	
  $

  	
  0

  	
   

  
	
  The Contract Sum Prior To This Change Order
  Was

  	
   

  	
  $

  	
  81,957,183

  	
   

  
	
  The Contract Sum Will Be Increased By This
  Changer Order in the Amount of

  	
   

  	
  $

  	
  3,640,933

  	
   

  
	
  The New Contract Sum Including This Change
  Order Will Be

  	
   

  	
  $

  	
  85,598,116

  	
   

  

 

	
  The Contract
  Time will be increased by          Zero (0)         Days

  	
   

  
	
  The date of
  Substantial Completion as of the date of this Change Order therefore is

  	
  July 23,
  2005

  

 

NOTE:
This Change Order does not include changes in the Contract Sum, Contract Time
or Guaranteed Maximum Price Which have been authorized by Construction Change
Directive until the cost and time have been agreed upon by both the Owner and
Contractor, in which case a Change Order is executed to supersede the
Construction Change Directive

 

NOT VALID
UNTIL SIGNED BY THE ARCHITECT, CONTRACTOR AND OWNER

 

	
  Paul
  Steelman Design Group

  	
   

  	
  Roy Anderson
  Corp

  	
   

  	
  Premier
  Entertainment Biloxi LLC (Premier)

  
	
  ARCHITECT
  (Firm Name)

  	
   

  	
  CONTRACTOR
  (Flrm Name)

  	
   

  	
  OWNER
  (Firm Name)

  Premier Finance Biloxi Corp (PFC)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3330 W
  Desert Inn Road

  	
   

  	
  P.O.BOX 2

  	
   

  	
  P.O. BOX 268

  
	
  Las Vegas,
  NY 89102

  	
   

  	
  Gulfport, MS
  39502

  	
   

  	
  Biloxi, MS
  39533-0268

  
	
  ADDRESS

  	
   

  	
  ADDRESS

  	
   

  	
  ADDRESS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Robert
  A. Murphy

  	
   

  	
  /s/ Meng
  Chai

  	
   

  	
  /s/ Joe Billhimer

  
	
  By
  (Signature)

  	
   

  	
  By
  (Signature)

  	
   

  	
  By (Signature)

  
	
   

  	
   

  	
   

  	
   

  	
  For Premier
  and PFC

  
	
  Robert A.
  Murphy

  	
   

  	
  Meng Chai

  	
   

  	
  Joe
  Billhimer

  
	
  (Type Name)

  	
   

  	
  (Type Name)

  	
   

  	
  (Type Name)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10/29/04

  	
   

  	
  10/12/04

  	
   

  	
  10/22/04

  
	
  DATE:

  	
   

  	
  DATE:

  	
   

  	
  DATE:

  

 

AIA Document G701 - 2001.
Copyright 1978 and 2001 by The American Institute of
Architects.  All rights reserved.  Warning: This AIA Document is protected by
the U.S. Copyright Law and International Treaties.  Unauthorized reproduction or distribution of
this AIA Document, or any Portion of it, may result in severe civil and
criminal penalties and will be prosecuted to the maximum extent possible under
the law.  This document was produced by
AIA software under Order No 1000097216 1 which expires on 2/8/2005, and is not
for resale.

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