Document:

Exhibit 10.1

 

AGENCY
AGREEMENT

 

THIS AGREEMENT dated February     , 2008, is made

 

BETWEEN

 

VISTA GOLD CORP., a company continued under the Yukon Business Corporations Act (Yukon Territory)
and has its head office located at 7961 Shaffer Parkway, Suite 5, Littleton, CO 80127  U.S.A.

 

(the “Issuer”);

 

AND

 

CASIMIR CAPITAL L.P. of 489 Fifth Avenue, Second
Floor, New York, NY 10017  U.S.A.

 

(the “Agent”).

 

WHEREAS:

 

A.            The Issuer wishes to privately place with purchasers up to 30,000 Notes (as defined below) with an
over-allotment option, to be exercised at the sole discretion of the Agent to
sell an additional 2,000 Notes  at
a price of US$1,000 per Note (or any integral multiple thereof);

 

B.            The Issuer wishes to
appoint the Agent to offer the Notes for sale by way of private placement, and
the Agent is willing to accept such appointment on the terms and conditions of
this Agreement;

 

THE PARTIES to this Agreement therefore agree:

 

1.             DEFINITIONS

 

1.1           In this Agreement and the
Recitals hereto:

 

	
  (a)

  	
   

  	
  “Accredited
  Investor” means an “accredited investor” as defined in
  Rule 501(a) of Regulation D;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  “Affiliate”
  means any body corporate directly or indirectly controlling, controlled by or
  under direct or indirect common control of the Issuer. For the purposes of
  this Agreement, the Issuer controls another body corporate or is controlled
  by another body corporate, if the Issuer or the other body corporate holds
  more than 50% of the voting shares of the other body corporate or the Issuer,
  as applicable;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  “Agent
  Introduced Parties” means the Accredited Investors introduced to
  the Issuer by the Agent for the purposes of participating in the Private
  Placement listed in Schedule “B”;

  

 

 

	
  (d)

  	
   

  	
  “Agent’s
  Fee” means the fee which is set out in Section 4 of this
  Agreement and which is payable by the Issuer to the Agent in consideration of
  the services performed by the Agent under this Agreement;

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  “Agent’s
  Common Share Purchase Warrants” means the share purchase warrants
  of the Issuer which have the terms provided in the certificates representing
  such share purchase warrants;

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  “Agent’s
  Warrant Shares” means the previously unissued Common Shares, which
  will be issued upon the exercise of the Agent’s Common Share Purchase
  Warrants;

  
	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  “AMEX”
  means the American Stock Exchange;

  
	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  “Applicable
  Legislation” means the securities acts in the Selling
  Jurisdictions, together with all the regulations and rules made and
  promulgated thereunder and all administrative policy statements, instruments,
  blanket orders and rulings, notices and administrative directions issued by
  the Commissions;

  
	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  “Closing”
  means a day or days on which Notes are issued to the Purchasers;

  
	
   

  	
   

  	
   

  
	
  (j)

  	
   

  	
  “Commissions”
  means the securities commission or equivalent regulatory authority in the
  Selling Jurisdictions;

  
	
   

  	
   

  	
   

  
	
  (k)

  	
   

  	
  “Common
  Shares” means common shares in the capital of the Issuer;

  
	
   

  	
   

  	
   

  
	
  (l)

  	
   

  	
  “Directed
  Selling Efforts” means “directed selling efforts” as that term is
  defined in Regulation S. Without limiting the foregoing, but for greater
  clarity, it means, subject to the exclusions from the definition of directed
  selling efforts contained in Regulation S, any activity undertaken for the
  purpose of, or that could reasonably be expected to have the effect of,
  conditioning the market in the United States for any of the Securities and
  includes the placement of any advertisement in a publication with a general
  circulation in the United States that refers to the offering of any of the
  Securities;

  
	
   

  	
   

  	
   

  
	
  (m)

  	
   

  	
  “Disclosure
  Record” means the Issuer’s annual reports, financial statements, annual information
  forms, information circulars, material change reports, technical reports,
  press releases and any and all other documents filed by the Issuer on SEDAR or EDGAR on or before the date hereof;

  
	
   

  	
   

  	
   

  
	
  (n)

  	
   

  	
  “Exchanges”
  means the TSX and the AMEX;

  
	
   

  	
   

  	
   

  
	
  (o)

  	
   

  	
  “Exchange
  Policies” means the rules and policies of the Exchanges;

  
	
   

  	
   

  	
   

  
	
  (p)

  	
   

  	
  “Exemptions”
  means the exemptions from the prospectus delivery requirements of the
  Applicable Legislation and the exemption from the registration requirement
  under the U.S. Securities Act available under Rule 506 of Regulation D
  and similar exemptions from registration available under application state
  securities laws;

  

 

2

	
   

  	
   

  	
   

  
	
  (q)

  	
   

  	
  “General
  Solicitation” and “General
  Advertising” mean “general solicitation” and “general
  advertising”, respectively, as used under Rule 502(c) under the
  U.S. Securities Act, including, but not limited to, advertisements, articles,
  notices or other communications published in any newspaper, magazine or
  similar media or on the internet or broadcast over radio, television,
  electronic display (including the internet) or any seminar or meeting whose
  attendees had been invited by general solicitation or general advertising;

  
	
   

  	
   

  	
   

  
	
  (r)

  	
   

  	
  “Material
  Adverse Effect” means any change, fact, event, circumstance or
  state of being which could reasonably be expected to have a material and
  adverse effect (actual or anticipated, whether financial or otherwise) on the
  business, affairs or operations (financial or otherwise) on the Issuer;

  
	
   

  	
   

  	
   

  
	
  (s)

  	
   

  	
  “Material
  Change” has the meaning defined in the Applicable Legislation;

  
	
   

  	
   

  	
   

  
	
  (t)

  	
   

  	
  “Material
  Fact” has the meaning defined in the Applicable Legislation;

  
	
   

  	
   

  	
   

  
	
  (u)

  	
   

  	
  “NI
  45-102” means National Instrument 45-102 Resale of Securities or any successor
  instrument promulgated by the Commissions;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  “Notes”
  means a 10% senior secured note of the Issuer in the principal amount of
  US$1,000 (or any integral multiple thereof), issued
  pursuant to and shall have the terms and conditions more particularly
  described in the Senior Secured Note Indenture;

  
	
   

  	
   

  	
   

  
	
  (w)

  	
   

  	
  “Note
  Shares” means the common shares of the Issuer issuable upon
  conversion of the Note;

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  “Permits”
  means the material permits and material licences as applicable in respect of
  each Property as disclosed in the Disclosure Record;

  
	
   

  	
   

  	
   

  
	
  (y)

  	
   

  	
  “Private
  Placement” means the offering of the Notes on the terms and
  conditions of this Agreement;

  
	
   

  	
   

  	
   

  
	
  (z)

  	
   

  	
  “Properties”
  has the meaning set forth in section 16.1(h);

  
	
   

  	
   

  	
   

  
	
  (aa)

  	
   

  	
  “Purchasers”
  means the purchasers of Notes pursuant to the Private Placement;

  
	
   

  	
   

  	
   

  
	
  (bb)

  	
   

  	
  “Regulation
  D” means Regulation D promulgated by the SEC under the U.S.
  Securities Act;

  
	
   

  	
   

  	
   

  
	
  (cc)

  	
   

  	
  “Regulation
  M” means Regulation M promulgated by the SEC under the U.S.
  Exchange Act;

  
	
   

  	
   

  	
   

  
	
  (dd)

  	
   

  	
  “Regulation
  S” means Regulation S promulgated by the SEC under the U.S.
  Securities Act;

  
	
   

  	
   

  	
   

  
	
  (ee)

  	
   

  	
  “Regulatory
  Authorities” means the Commissions and the Exchanges;

  
	
   

  	
   

  	
   

  
	
  (ff)

  	
   

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

  

 

3

 

	
  (gg)

  	
   

  	
  “Securities”
  means the Notes, the Note Shares, the Agent’s Common Share Purchase Warrants
  and the Agent’s Warrant Shares;

  
	
   

  	
   

  	
   

  
	
  (hh)

  	
   

  	
  “Selling
  Jurisdictions” means such jurisdictions as may be agreed to by the Issuer and the Agent;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  “Senior
  Secured Note Indenture” means the Senior Secured Note Indenture
  entered into on the date hereof between the Issuer and HSBC Bank USA, N.A.,
  in its capacity as trustee for the holders of Notes;

  
	
   

  	
   

  	
   

  
	
  (jj)

  	
   

  	
  “TSX”
  means the Toronto Stock Exchange;

  
	
   

  	
   

  	
   

  
	
  (kk)

  	
   

  	
  “United
  States” means the United States of America, its territories and
  possessions, any state of the United States and the District of Columbia;

  
	
   

  	
   

  	
   

  
	
  (ll)

  	
   

  	
  “U.S.
  Exchange Act” means the United States Securities Exchange Act of
  1934, as amended;

  
	
   

  	
   

  	
   

  
	
  (mm)

  	
   

  	
  “U.S.
  Person” means “U.S. person” as defined in Rule 902 of
  Regulation S; and

  
	
   

  	
   

  	
   

  
	
  (nn)

  	
   

  	
  “U.S.
  Securities Act” means the United States  Securities Act of 1933, as amended.

  

 

2.             APPOINTMENT OF AGENT

 

2.1           The Issuer appoints the Agent as its non-exclusive agent and the
Agent accepts the appointment and agrees to act as the non-exclusive agent of
the Issuer to offer for sale up to 30,000 Notes, at a price of US$1,000 per
Note by way of private placement under the Exemptions on a commercially
reasonable best efforts agency basis subject to an over-allotment option, to be
exercised at the sole discretion of the Agent to sell up to an additional 2,000
Notes.

 

3.             THE NOTES

 

3.1           Each Note will be issued
and registered in the names of the Purchasers or their nominees.

 

4.             AGENT’S FEE

 

4.1           In consideration of the services performed by the Agent under this
Agreement in respect of the Private Placement, the Issuer agrees to pay to the
Agent on Closing an Agent’s Fee consisting of:

 

(a)                                  a cash payment equal to 4.0% of
the gross proceeds received by the Issuer from the sale of the Notes on such
Closing; and

 

(b)                                 that number of Agent’s Common Share Purchase Warrants which is equal to 4.0% of the number of Note Shares on an
as-converted basis (and, for greater certainty, assuming a conversion price of
US$6.00 per share), calculated based on the number of Notes issued at such
Closing.

 

4

 

4.2           One Agent’s Common Share Purchase Warrant will entitle the holder,
on exercise, to purchase one Agent’s Warrant Share, at a price of US$6.00 per
Agent’s Warrant Share until the close of business on the day which is three (3) years
following the Closing.

 

4.3           The Agent’s Common Share Purchase Warrants will be non-transferable.

 

4.4           The certificates representing the Agent’s Common Share Purchase
Warrants will, among other things, include provisions for the appropriate adjustment
in the class, number and price of the Agent’s Warrant Shares issuable upon
exercise of the Agent’s Common Share Purchase Warrants upon the occurrence of
certain events, including any subdivision, consolidation or reclassification of
the Common Shares, the payment of stock dividends and the amalgamation of the
Issuer.

 

4.5           The Agent acknowledges that none of the Agent’s Common Share
Purchase Warrants and Agent’s Warrant Shares have been or will be registered
under the U.S. Securities Act or the securities laws of any state of the United
States.  The Agent represents and
warrants and covenants as follows to the Issuer: the Agent is an “accredited
investor” as such term is defined in Regulation D and is acquiring the Agent’s
Common Share Purchase Warrants as principal for its own account and not for the
benefit of any other person.

 

5.             FUTURE TRANSACTIONS

 

5.1           During the six (6) months following the date hereof any Agent
Introduced Party purchases securities from the Issuer other than through an
underwritten public offering (or enters into an agreement or letter of intent
with the Issuer during such period of time to purchase securities from the
Issuer which is consummated at any time thereafter), the Issuer shall pay to
the Agent upon the completion of such purchase of securities a cash fee, and
issue to the Agent that number of Agent’s Common Share Purchase Warrants that
would otherwise have been payable to the Agent in accordance with Section 4.1
hereof had such transaction occurred as part of the Private Placement.

 

6.             DUE DILIGENCE

 

6.1           The Issuer will, during normal business hours and following
reasonable prior notice, make available to the Agent and its solicitor all
corporate, financial and operating information and documentation regarding the
Issuer and the Private Placement and will provide access to senior management,
facilities, employees, auditors, legal counsel, consultants and operators of
the Issuer in order to permit the Agent and its solicitor to conduct such due
diligence investigation of the business and affairs of the Issuer which are
reasonably necessary to allow the Agent to perform its services under this
Agreement.

 

7.             OFFERING RESTRICTIONS

 

7.1           Except as set out in Sections 7.2 and Section 8 hereof, the
Agent will only sell the Notes to persons who represent themselves as being:

 

(a)                                  persons purchasing as principal;
and

 

(b)                                 qualified to purchase the Notes
under the Exemptions.

 

5

 

7.2           None of the Issuer, the
Agent, any of its or their respective affiliates, or any person acting on
behalf of the foregoing have made or will make any offer to sell, solicitation
of an offer to buy or sale of any Notes except (i) with respect to offers
and sales to Accredited Investors in reliance upon an exemption from
registration under Rule 506 of Regulation D and in compliance with Section 7
and 8 hereof, (ii) in compliance with applicable laws of each jurisdiction
in which such offers and sales are made, whether in the U.S. or any other
Selling Jurisdiction and (iii) in a manner that will not require the
registration or the filing of a prospectus or offering memorandum with respect
to the Notes under the laws of any jurisdiction.

 

7.3           None of the Agent or its
affiliates, or any person acting on behalf of the foregoing, have engaged or
will engage in any Directed Selling Efforts.

 

7.4           The Private Placement has not been and will not be advertised in any
way.

 

7.5           No selling or promotional expenses will be paid or incurred in
connection with the Private Placement, except for professional services or for
services performed by a registered dealer.

 

8.             U.S. LAW

 

8.1           Representations of the Issuer Regarding U.S. Securities Laws

 

The Issuer represents, warrants, covenants and agrees that:

 

(a)                                  it is not, as a result of the
sale of the Notes will not be, and, for so long as any Notes are outstanding,
agrees not to become, registered or required to register as an “investment
company” under the United States Investment Company Act of 1940, as amended;

 

(b)                                 during the period in which the
Notes are offered for sale none of it, its affiliates, or any person acting on
its or their behalf (excluding the Agent, its respective affiliates or any
person acting on its or their behalf, in respect of which no representation is
made) has made or will make any Directed Selling Efforts, or has taken or will
take any action in violation of Regulation M or has taken or will take any
action that would cause the exemption from registration under Rule 506 of
Regulation D to be unavailable for offers and sales of the Notes pursuant to
this Agreement;

 

(c)                                  none of the Issuer, any of its
affiliates or any person acting on its or their behalf (other than the Agent,
their respective affiliates or any person acting on its or their behalf, in
respect of which no representation is made) has offered or will offer to sell,
or has solicited or will solicit offers to buy, any of the Notes by means of
any form of General Solicitation or General Advertising
or in any other manner involving a public offering within the meaning of Section 4(2) of
the U.S. Securities Act;

 

(d)                                 the Issuer has not, for a period
of six months prior to the commencement of the offering of Notes, sold, offered
for sale or solicited any offer to buy any of its securities in a manner that
would be integrated with the offer and sale of the 

 

6

 

Notes
pursuant to this Agreement, would cause the exemption from registration set
forth in Rule 506 of Regulation D to become unavailable with respect to
the offer and sale of the Notes pursuant to this Agreement; and

 

(e)                                  neither the Issuer nor any of its
predecessors or affiliates has been subject to any order, judgment, or decree
of any court of competent jurisdiction temporarily, preliminarily or permanently
enjoining such person for failure to comply with Rule 503 of Regulation D.

 

8.2           Representations
of the Agent Regarding U.S. Securities Laws

 

The Agent acknowledges that the Securities have not been registered
under the U.S. Securities Act or applicable state securities laws and may not
be offered, except to Accredited Investors; and only pursuant to Rule 506
of Regulation D. Accordingly, the Agent, on its own behalf and on behalf of its
affiliates, represents, warrants and covenants to the Issuer that, with respect
to each offer of Notes, it has offered and will offer the Notes to offerees
only in the following manner:

 

(a)                                  the Agent will offer the Notes in
the United States and to, or for the account or benefit of, U.S. Persons, only
through the Agent, which is a broker dealer registered pursuant to Section 15(b) of
the U.S. Exchange Act and in good standing with the Financial Industry
Regulatory Authority (“FINRA”),
and only in compliance with all applicable U.S. federal and state laws and
regulations governing the conduct of broker dealers, in states of the United
States where the Agent is registered, or otherwise exempt from registration;

 

(b)                                 no form of General Solicitation
or General Advertising has been or will be used by the Agent, its affiliates or
anyone acting on its or their behalf in connection with the offer of the Notes and no offers will be made in any manner involving a public offering
within the meaning of Section 4(2) of the U.S. Securities Act;

 

(c)                                  any offer or solicitation of an
offer to buy Notes by the Agent, its affiliates and persons acting on behalf of
any of them that has been made or will be made pursuant to the Private
Placement, was or will be made only to persons who are, or are reasonably
believed to be, Accredited Investors, and in transactions that are exempt from
registration under the U.S. Securities Act under Rule 506 of Regulation D
and similar exemptions from registration under applicable state securities laws
and require no filings or actions pre-offer or pre-sale except as otherwise
agreed by the Issuer;

 

(d)                                 it has not entered and will not
enter into any contractual arrangement with respect to the distribution of the
Notes, except with its affiliates or with the prior written consent of the
Issuer.  It shall require each selling
group member to agree in writing, to comply with, and shall use its best
efforts to ensure that each selling group member complies with the same
provisions of this Section 8.2 as apply to such Agent as if such
provisions applied to such selling group member;

 

7

 

(e)                                  none of the Agent, its affiliates
or any person acting on their behalf will use any written material on
connection with the offer of sale of the Notes, other than the subscription
agreement in the form agreed upon by the Agent and the Issuer;

 

(f)                                    immediately prior to soliciting
any prospective Purchaser or person acting on behalf of such Purchaser, the
Agent, its affiliates, and any person acting on its or their behalf, had reasonable
grounds to believe and did believe that each such prospective Purchaser was an
Accredited Investor, and at the time of completion of each sale to, or for the
benefit or account of each Purchaser, the Agent, its respective affiliates, and
any person acting on its or their behalf will have reasonable grounds to
believe and will believe, that each such Purchaser is an Accredited Investor;

 

(g)                                 the Agent may offer the Notes
only to offerees with respect to which the Agent has a pre-existing
relationship such that the Agent is in a position to determine that the
offeree, or beneficial purchaser, if any, for whom the offeree is acting as
trustee or agent, has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of its investment
in the Notes;

 

(h)                                 prior to the sale of Notes to any
Purchaser, the Agent will inform all purchasers of the Notes that neither the
Notes nor the securities issuable upon conversion thereof have been or will be
registered under the U.S. Securities Act or applicable state securities laws
and are being offered and sold to them without registration under the U.S.
Securities Act in reliance on Rule 506 of Regulation D and in reliance
upon similar exemptions from registration available under applicable state
securities laws;

 

(i)                                     on Closing, the Agent will
provide a certificate, substantially in the form of Appendix I, relating to the
manner of the offer and sale of the Notes;

 

(j)                                     none of the Agent, its respective
affiliates, or any person acting on their behalf, has taken or will take,
directly or indirectly, any action in violation of Regulation M with respect to
the offering of the Notes;

 

(k)                                  prior to completion of any sale
of Notes, the Agent shall cause each Purchaser of Notes to execute a
subscription agreement in the form agreed upon by the Agent and the Issuer,
including a properly and duly completed U.S. Accredited Investor Status
Certificate;

 

(l)                                     the Agent shall provide the
Issuer with a list of all Purchasers in the United States, who are U.S. Persons
or who were offered Notes in the United States, so as to assist the Issuer in
satisfying their obligations under Section 10.5 and to permit the Issuer
to submit any and all filings required pursuant to the U.S. Securities Act and
applicable state laws; and

 

(m)                               the representations and
warranties and covenants of the Agent contained in this Section 8.2 shall
be true and correct as of the Closing, with the same force and effect as if
then made by the Agent.

 

8

 

9.             SUBSCRIPTIONS

 

9.1           The Agent will obtain from
each Purchaser, and deliver to the Issuer, on or before Closing duly completed
and signed subscriptions in the form consented to by the Issuer and the Agent
and executed by the Purchaser.

 

10.          FILINGS WITH THE REGULATORY
AUTHORITIES

 

10.1         The Issuer will forthwith give to the Exchanges written notice of
the terms of this Agreement and the proposed Private Placement and all other
information required by the Exchange Policies (the “Notices”).

 

10.2         The Issuer will forthwith on receipt provide the Agent and its
solicitor with a copy of the preliminary and final letters of acceptance of the
Notices from the Exchanges; provided, however that the Agent acknowledges that
with respect to AMEX, only a Final Letter of approval will be issued and
provided accordingly.

 

10.3         The Issuer will file all required documents, pay all required filing
fees and use all reasonable commercial efforts to undertake any other actions
required by the Exchange Policies in order to obtain the approval of the
Exchanges to the Private Placement.

 

10.4         Upon Closing, the Issuer will give the Exchanges immediate notice in
writing of such fact.

 

10.5         Within fifteen (15) days of the Closing where any Purchasers in the
United States or who are U.S. Persons purchase Notes, the Issuer shall file a
notice in Form D with the SEC and any applicable state securities
commissions, if required.

 

11.          CLOSING

 

11.1         In this Section:

 

(a)                                  “Certificates” means the certificates representing the Notes
and Agent’s Common Share Purchase Warrants to be issued on Closing, in the
names and denominations reasonably requested by the Agent or the Purchasers, as
the case may be; and

 

(b)                                 “Proceeds” means the gross proceeds of the sale of Notes on
Closing, less:

 

(i)                                     any portion of the Agent’s Fee
which is payable in cash;

 

(ii)                                  subject to Section 17, the
reasonable expenses of the Agent in connection with the Private Placement which
have not been paid by the Issuer.

 

11.2         If the Agent has satisfied all its
material obligations under the Agreement, the Issuer
will, on Closing, issue and deliver the Certificates to the Agent against
payment of the Proceeds.

 

11.3         If the Issuer has satisfied all of its material obligations under
this Agreement, the Agent will, on Closing, pay the Proceeds to the Issuer
against delivery of the Certificates.

 

9

 

11.4                          The
Issuer will endorse the Certificates with such legends as required by the
Applicable Legislation, United States federal or state securities laws and the
Exchange Policies.

 

12.                             CONDITIONS OF CLOSING

 

12.1                          The
obligations of the Agent on Closing will be conditional upon the following:

 

(a)                                on Closing, the Issuer will have delivered to the Agent and its
solicitor a favourable opinion or opinions of the Issuer’s solicitors dated as
of the date of Closing, in a form acceptable to the Agent and its solicitor as
to all legal matters reasonably requested by the Agent relating to the business
of the Issuer and the creation, issuance and sale of the Securities;

 

(b)                                each representation and warranty of the Issuer which is contained in
this Agreement continues to be true, and the Issuer has performed or complied
with all of its covenants, agreements and obligations under this Agreement;

 

(c)                                no Commission has advised the Issuer in writing that its securities are
not eligible for the four month hold period provided for in NI 45-102;

 

(d)                               on Closing, the Issuer will have delivered to the Agent an opinion of
United States counsel, in form reasonably acceptable to the Agent and its
counsel, to the effect that the offer and sale of Notes in the United States,
if completed in compliance with this Agreement, is not required to be
registered under the U.S. Securities Act;

 

(e)                                 on
Closing, the Issuer will deliver a certificate signed on behalf of the Issuer
by any two of the Chief Executive Officer, the Chief Financial Officer and
Secretary of the Issuer addressed to the Agent and to the Purchasers and dated
the day of Closing, in form and content satisfactory to the Agent and its
solicitor, acting reasonably, certifying for and on behalf of the Issuer, that:

 

(i)                                    the articles of
the Issuer attached to the certificate are full, true and correct copies,
unamended, and in effect on the date thereof;

 

(ii)                                 the resolutions
of the Issuer’s board of directors attached to the certificate relating to the
matters in connection with the Private Placement are full, true and correct
copies thereof and have not been modified or rescinded as of the date thereof;

 

(iii)                             no order
ceasing or suspending trading in any securities of the Issuer or prohibiting
the issue and sale of the Securities or any of the Issuer’s issued securities
has been issued or made by any stock exchange, securities commission or
regulatory authority and is continuing and in effect, and no proceedings for
such purpose are pending or, to the knowledge of such officers, threatened;

 

(iv)                             to the best
knowledge of such officers, there has been no Material Change (actual, proposed
or prospective, whether financial or otherwise) in the 

 

10

 

business, business
prospects, affairs, operations, assets, liabilities (contingent or otherwise)
of or to the capital of the Issuer, or change in a Material Fact, that has not
been generally disclosed pursuant to Section 13.1 hereof;

 

(v)                               the
representations and warranties of the Issuer contained herein are true and
correct as of the Closing with the same force and effect as if made by the
Issuer at the Closing, after giving effect to the transactions contemplated
herein;

 

(vi)                            the Issuer has
complied with all the covenants and satisfied all the terms and conditions of
this Agreement on its part to be complied with or satisfied at or prior to the
Closing; and

 

(vii)                         such other
matters as may be reasonably requested by the Agent, the Agent’s counsel or the
Issuer’s counsel;

 

(f)                                   on
Closing, the Issuer will have entered into and delivered to the Agent and its
solicitor the Senior Secured Note Indenture; and

 

(g)                                 on
Closing, the Issuer will have delivered to the Agent and its solicitor such
other documents relating to the Private Placement or the affairs of the Issuer
as the Agent or its solicitor may reasonably request.

 

12.2                         Closing
and the obligations of the Issuer and the Agent to complete the issue and sale
of the Securities are subject to:

 

(a)                                  receipt of approval of the board of directors of the Issuer in
connection with the Private Placement;

 

(b)                                 on
Closing, the Issuer will have made and/or obtained the necessary filings,
approvals, consents and acceptances to or from the Regulatory Authorities
required to be made or obtained by the Issuer in connection with the Private
Placement prior to the Closing, on terms which are acceptable to the Issuer and
the Agent acting reasonably;

 

(c)                                  the
TSX will have conditionally approved the listing of the Note Shares and the
Agent’s Warrant Shares, subject
only to compliance with the usual conditions of the TSX;

 

(d)                                 the
AMEX will have approved the listing of the Note Shares and the Agent’s Warrant
Shares, subject only to compliance
with the usual conditions of the AMEX; and

 

(e)                                  the removal or partial revocation of any cease trading order or trading
suspension made by any competent authority to the extent necessary to complete
the Private Placement.

 

11

 

13.                             MATERIAL CHANGES

 

13.1                         The
Issuer agrees that if, between the date of this Agreement and the Closing a
Material Change, or a change in a Material Fact occurs, the Issuer will:

 

(a)                                  as soon as practicable notify the Agent in writing, setting forth the
particulars of such change;

 

(b)                                 as soon as practicable, issue and file with the Regulatory Authorities a
press release that is authorized by a senior officer disclosing the nature and
substance of the change;

 

(c)                                  as soon as practicable file with the Commissions the report required by
the applicable securities legislation and in any event no later than 10 days
after the date on which the change occurs; and

 

(d)                                 provide copies of that press release, when issued, and that report, when
filed, to the Agent and its solicitor.

 

14.                             RESALE RESTRICTIONS

 

14.1                         In
Canada, the Securities will be subject to a four-month and a day hold period in
Canada from Closing in accordance with Applicable Legislation, and certificates
evidencing such Securities will bear a restrictive legend to that effect.

 

14.2                         The
Securities will also be subject to resale limitations in the United States
imposed by the U.S. Securities Act and the applicable state securities laws.

 

15.                             TERMINATION

 

15.1                         The
Agent may terminate its obligations under this Agreement by notice in writing
to the Issuer at any time before the Closing if:

 

(a)                                  there
shall have occurred a Material Change in relation to the Issuer that would have
a Material Adverse Effect or a development relating to the Issuer that would
have a Material Adverse Effect;

 

(b)                                 there is an event, accident, governmental law or regulation or other
occurrence of any nature which, in the opinion of the Agent, acting reasonably
and in good faith, seriously affects or will seriously affect the financial
markets, or the business of the Issuer or the ability of the Agent to perform
its obligations under this Agreement, or a Purchaser’s decision to purchase the
Notes;

 

(c)                                  the Securities cannot, in the opinion of the Agent, acting reasonably
and in good faith, be marketed due to the state of the financial markets, or
the market for the Notes in particular;

 

(d)                                 there shall have
occurred any change in the Applicable Legislation, or any inquiry,
investigation or other proceeding is made or any order is issued under or
pursuant to any statute of Canada or the Selling Jurisdictions or the Exchanges
in 

 

12

 

relation to the Issuer or any of its
securities (except for any inquiry, investigation or other proceeding or order
based upon activities of the Agent and not upon activities of the Issuer or its
subsidiaries), which, in the opinion of the Agent, prevents or restricts
trading in or the distribution of the Securities or adversely affects or might
reasonably be expected to adversely affect the investment quality or
marketability of the Notes;

 

(e)                                  any order to cease, halt or suspend trading (including an order
prohibiting communications with persons in order to obtain expressions of
interest) in the securities of the Issuer prohibiting or restricting the
Private Placement is made by a competent regulatory authority and that order is
still in effect; or

 

(f)                                    the Issuer is in breach of any material term of this Agreement.

 

15.2                           The
Agent’s obligations hereunder will terminate if the Exchanges do not issue
their final letter of acceptance, subject only to usual post-Closing filings
with the Exchanges, as applicable, of the Private Placement within 90 days of
the date of this Agreement, unless otherwise agreed in writing by the Agent.

 

16.                              WARRANTIES, REPRESENTATIONS AND COVENANTS

 

16.1                          The
Issuer warrants and represents to and covenants with the Agent that:

 

(a)                                  the Issuer and its subsidiaries are valid and subsisting corporations
duly incorporated and in good standing under the laws of the jurisdiction in
which they are incorporated, continued or amalgamated;

 

(b)                                 the Issuer and its subsidiaries are duly registered and licensed to
carry on business in the jurisdictions in which they carry on business or own
property where so required by the laws of that jurisdiction and are not
otherwise precluded from carrying on business or owning property in such
jurisdictions by any other commitment, agreement or document except where
failure to do so would not have a Material Adverse Effect;

 

(c)                                  the Issuer has full corporate power and authority to carry on its
business as now carried on by it and to undertake the Private Placement, and
this Agreement and the Senior Secured Note Indenture are, or will be by the
Closing, duly authorized by all necessary corporate action on the part of the
Issuer and constitute
legal, valid and binding agreements of the Issuer enforceable against the
Issuer in accordance with their respective terms, subject to laws relating to
creditors’ rights generally, the availability of equitable remedies and except
as to rights to indemnify and contribution may be limited by applicable laws;

 

(d)                                 all of the material transactions of the Issuer are promptly and properly
recorded or filed in its books or records and its minute books or records
contain all records of the meetings and proceedings of its directors,
shareholders, and other committees, if such material transactions were required
by Applicable Legislation or the Issuer’s constating documents to have been
approved by directors or shareholders of the Issuer;

 

13

 

(e)                                 as of the date hereof, the authorized capital of the Issuer consists of
an unlimited number of Common Shares of which [l]
Common Shares are issued and outstanding as fully paid and non-assessable and
no person has any right, agreement or option, present or future, contingent or
absolute, or any right capable of becoming such a right, agreement or option,
for the issue or allotment of any unissued shares in the capital of the Issuer
or its subsidiaries or any other security convertible into or exchangeable for
any such shares, or to require the Issuer or its subsidiaries to purchase,
redeem or otherwise acquire any of the issued and outstanding shares in its
capital other than as disclosed in the Disclosure Record;

 

(f)                                   the Issuer will reserve or set aside sufficient shares in its treasury
to issue the Note Shares and the Agent’s Warrant Shares and upon receipt of the
consideration therefor all such shares will be duly and validly issued as fully
paid and non-assessable;

 

(g)                                 except as qualified by the Disclosure Record, the Issuer or its
subsidiaries is the legal and beneficial owner of and has good and marketable
title to the properties, business and assets or the interests in the
properties, business or assets referred to in the Disclosure Record, all
agreements by which the Issuer holds an interest in a property, business or
assets are in good standing according to their terms and the properties are in
good standing under the applicable laws of the jurisdictions in which they are
situated and all filings and work commitments required to maintain the
properties in good standing have been properly recorded and filed in a timely
manner with the appropriate regulatory body and there are no mortgages, liens,
charges, encumbrances or any other interests in or on such properties other
than as disclosed in the Disclosure Record except where failure to do so would
not have a Material Adverse Effect;

 

(h)                                 the Disclosure Record and all financial, marketing, sales and
operational information provided to the Agent do not contain any
misrepresentations (as such term is defined in the Applicable Legislation) and the
Disclosure Record contains an accurate list of recorded title to mining claims
under the relevant laws described in the Disclosure Record (the “Properties”).  The Properties are the only mineral
properties in which the Issuer has an interest and are held under valid,
subsisting and enforceable title documents sufficient to permit the Issuer to
explore the minerals relating thereto, all such mining claims have been validly
located and recorded in accordance with all applicable laws and are valid and
subsisting, the Issuer has or is in the process of obtaining (and have no
reason to believe they will not obtain in the ordinary course but cannot
represent that they will obtain them) all necessary surface rights, access
rights and other necessary rights and interests relating to the Properties
granting the Issuer the right and ability to explore for minerals, ore and
metals for development purposes as are appropriate in view of the rights and
interest therein of the Issuer with only such exceptions as do not materially
interfere with the use made by the Issuer of the rights or interests so held;

 

14

 

(i)                                   the financial statements filed with the Commissions or supplied by the
Issuer to the Agent in connection with the Private Placement have been prepared
in accordance with Canadian generally accepted accounting principles, present
fairly, in all material respects, the financial position and all material
liabilities (accrued, absolute, contingent or otherwise) of the Issuer, and its
subsidiaries, as of the date thereof, and there have been no changes not
disclosed in the Disclosure Record which would have a Material Adverse Effect
in the financial position of the Issuer since the date thereof and the business
of the Issuer has been carried on in the usual and ordinary course consistent
with past practice since the date thereof;

 

(j)                                   the auditors of the Issuer who audited the financial statements of the
Issuer for the most recent financial year-end and who provided their audit
report thereon are independent public accountants as required under Applicable
Legislation and there has never been a reportable disagreement (within the
meaning of National Instrument 51-102 Continuous
Disclosure Obligations) with the present auditors of the Issuer;

 

(k)                                the Issuer has complied and will comply fully with the requirements of,
the Applicable Legislation in relation to the issue and trading of its
securities and in all matters relating to the Private Placement, and the issuer
is not currently in default of any filings with the Commissions;

 

(l)                                   except where failure to do so would not have a Material Adverse Effect,
to the knowledge of the Issuer, the Issuer is in compliance with all applicable
laws, regulations and statutes (including all environmental laws and
regulations) in the jurisdictions in which it carries on business and which may
materially affect the Issuer, has not received a notice of non-compliance, nor
knows of, nor has reasonable grounds to know of, any facts that could give rise
to a notice of non-compliance with any such laws, regulations and statutes, and
is not aware of any pending change or contemplated change to any applicable law
or regulation or governmental position that would have a Material Adverse
Effect on the business of the Issuer or the business or legal environment under
which the Issuer operates;

 

(m)                             to the best of its knowledge, the Issuer has not caused or permitted the
release, in any manner whatsoever, of any pollutants, contaminants, chemicals
or industrial toxic or hazardous waste or substances (collectively, the “Hazardous Substances”) on or from any of
its Properties or assets which would have a Material Adverse Effect nor does
the Issuer have any reason to believe that it is potentially responsible for a
clean-up site or corrective action under any applicable laws, statutes,
ordinances, by-laws, regulations, or any orders, directions or decisions
rendered by any government, ministry, department or administrative regulatory
agency relating to the protection of the environment, occupational health and
safety or otherwise relating to dealing with Hazardous Substances;

 

(n)                               there is not presently, and will not be until Closing, any Material
Change or change in any Material Fact relating to the Issuer which has not been
or will not 

 

15

 

be fully disclosed to the public in
accordance with the Issuer’s obligations under applicable laws;

 

(o)                                 the issue and sale of the Securities by the Issuer and the Agent, as
applicable, and the Issuer’s execution and delivery of the Senior Secured Note
Indenture does not and will not conflict with, and does not and will not result
in a breach of, or constitute a default under (A) any statute, rule or
regulation applicable to the Issuer including, without limitation, the
Applicable Legislation; (B) the constating documents, by-laws or
resolutions of the Issuer which are in effect at the date hereof; (C) any
agreement, debt instrument, mortgage, note, indenture, instrument, lease or
other document to which the Issuer is a party or by which it is bound; or (D) any
judgment, decree or order binding the Issuer or the Properties or assets of the
Issuer;

 

(p)                                 except as disclosed on Schedule A,
neither the Issuer nor any of its subsidiaries is a party to any actions, suits
or proceedings which could have a material adverse effect on the Issuer’s
business or financial condition, and to the best of the Issuer’s knowledge no
such actions, suits or proceedings are contemplated or have been threatened;

 

(q)                                 there are no judgments against the Issuer or any of its subsidiaries
which are unsatisfied, nor are there any consent decrees or injunctions to
which the Issuer or any of its subsidiaries, if any, is subject;

 

(r)                                    the Issuer is a “reporting issuer” in each of the provinces of Canada
and the Yukon Territory, and is a reporting company under the U.S. Exchange
Act, and is not in default of any of the requirements of the Applicable
Legislation or any of the administrative policies or notices of the Regulatory
Authorities;

 

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

 

(t)                                    the Issuer and its subsidiaries, have filed all federal, provincial,
local and foreign tax returns which are required to be filed, or have requested
extensions thereof, and have paid all taxes required to be paid by them and any
other assessment, fine or penalty levied against them, or any amounts due and
payable to any governmental authority, to the extent that any of the foregoing
is due and payable except where failure to do so would not have a Material
Adverse Effect;

 

(u)                                 the Issuer and its subsidiaries, have established on their books and
records reserves which are adequate for the payment of all taxes not yet due
and payable and there are no liens for taxes on the assets of the Issuer or its
subsidiaries, if any, except for taxes not yet due, and there are no audits of
any of the tax returns of the Issuer or its subsidiaries, which are known by
the Issuer’s management to be pending, and there are no claims which have been
or that to the Issuer’s knowledge may be asserted relating to any such tax
returns which, if determined 

 

16

 

adversely, would result in the assertion by
any governmental agency of any deficiency which would have a Material Adverse
Effect on the Properties, business or assets of the Issuer or its subsidiaries;

 

(v)                                other than as disclosed in the financial statements of the Issuer, the
Issuer does not have any loans or other indebtedness outstanding which has been
made to any of its shareholders, officers, directors or employees, past or
present, or any person not dealing at “arm’s length” (as such term is used in
the Income Tax Act (Canada));

 

(w)                              the Issuer shall not take any action which would be reasonably expected
to result in the delisting or suspension of its common shares on or from either
of the Exchanges or on or from any stock exchange, market or trading or
quotation facility on which its Common Shares are listed or quoted and the
Issuer shall comply, in all material respects, with the rules and
regulations thereof;

 

(x)                                  other than the Agent, no person or firm acting at the request of the
Issuer is entitled to any brokerage, agency or finder’s fee in connection with
the Private Placement;

 

(y)                                the Issuer has and will have filed and will file all documents that are
required to be filed under the continuous disclosure and other applicable
reporting provisions of the Applicable Legislation (including, without
limitation, National Instrument 43-101), including annual and interim financial
information and annual reports, press releases disclosing Material Changes and
material change reports;

 

(z)                                  the Issuer is not in default of any material term, covenant or condition
under or in respect of any judgement, order, material agreement or instrument
to which it is a party or to which it or any of the properties or assets
thereof are or may be subject, and no event has occurred and is continuing, and
no circumstance exists which has not been waived, which constitutes an “Event
of Default” or a default in respect of any commitment, material agreement,
document or other instrument to which the Issuer is a party or by which it is
otherwise bound entitling any other party thereto to accelerate the maturity of
any amount owing thereunder or which could result in a Material Adverse Effect;

 

(aa)                           the warranties and representations in this Section are true and
correct and will remain so as of Closing;

 

(bb)                         the
Common Shares of the Issuer are listed for trading on the Exchanges and the
Issuer is in compliance with the rules and regulations of such bodies;

 

(cc)                           the
representations and warranties made by the Issuer in this Agreement and in each
other certificate, agreement or other document delivered by the Issuer or any
of its representatives pursuant hereto and the other information furnished to
the Agent by the Issuer or any of its officers and directors did not contain at
the time made or, if set forth herein, does not contain any untrue statement by
the Issuer of a material fact or omit to state any material fact necessary to
make the statements therein or herein, in light of the circumstances under
which they are made, not 

 

17

 

misleading. 
Except as set forth in the Disclosure Record, there is no fact that the
Company has not disclosed to the Agent 
in writing and of which any of its officers, directors or executive
employees is aware and that has had or would reasonably be expected to have a
Material Adverse Effect; and

 

(dd)                         the
Issuer has not provided or disclosed to the Agent or any Purchaser any material
non-public information about the Issuer.

 

16.2                         The
Agent warrants, represents and covenants to the Issuer that:

 

(a)                                  it holds all registrations or
qualifications (including under the Applicable Legislation) as required to
carry out its obligations hereunder and has observed and will observe all
applicable laws and regulations or similar enactments applicable in respect of
the Private Placement in each of the jurisdictions in which it may offer or
sell the Notes;

 

(b)                                 the Agent will, and
will establish reasonable procedures to, hold in confidence all information
received by it from the Issuer which has not been generally disclosed to the
public, will not use such information other than for purposes of the Private
Placement and will not knowingly disclose such information, except as required
in its opinion, acting reasonably, to discharge its obligations (a) under
this Agreement; or (b) under applicable law or regulatory policy;

 

(c)                                  the Agent is a
valid and subsisting partnership, properly formed under its jurisdiction of
creation and has the power and capacity to carry out its obligations under this
Agreement and this Agreement has been duly authorized, executed and delivered
by the Agent and is a valid and binding Agreement of the Agent enforceable
against it in accordance with its terms;

 

(d)                                 it will offer the Notes in compliance with the terms and conditions of
this Agreement and the Applicable Legislation, including United States federal
and state securities laws;

 

(e)                                  it will not make available to prospective Purchasers of Notes any
document or material that would constitute an offering memorandum, preliminary
prospectus or prospectus, as applicable, as defined under the Applicable
Legislation, including the United States federal and state securities laws nor
will it conduct its activities so as to require registration or the filing of a
prospectus or offering memorandum under the laws of any jurisdiction and will
cause similar covenants to be contained in any agreement with any selling firms
in connection with the Private Placement;

 

(f)                                    it will not trade in Notes or otherwise do any act in
furtherance of a trade of Notes outside of the Selling Jurisdictions, except as
contemplated in the Subscription Agreements, this Agreement or otherwise with
the prior consent of the Issuer, not to be unreasonably withheld;

 

(g)                                 it will not engage in any General Solicitation or General Advertising
and accordingly will not advertise the proposed sale of the Notes in printed
media of

 

18

 

general and regular paid circulation, or
broadcast over radio or television or otherwise conduct any seminar or meeting
concerning the offer or sale of the Notes where attendees have been invited by
General Solicitation or General Advertising;

 

(h)                                it will not solicit subscriptions
for Notes except in accordance with the terms and conditions of this Agreement;

 

(i)                                    it will obtain from each
Purchaser an executed subscription agreement including a properly and duly
completed U.S. Accredited Investor Status Certificate and such forms as may be
required by the Securities Commissions or other similar regulatory authority or
the Issuer as supplied by the Issuer to the Agent; and

 

(j)                                    it will provide to the Issuer all
necessary information in respect of the Agents and the Purchasers to allow the
Issuer to file, with the Securities Commissions or other similar regulatory
authority, if required, reports of the trades of the Notes in accordance with
Applicable Legislation.

 

17.                              EXPENSES OF AGENT

 

17.1                          The Issuer will pay all of the expenses of the Private Placement and
all the expenses reasonably incurred by the Agent in connection with the
Private Placement including, without limitation, the reasonable fees and
expenses of the solicitor for the Agent.

 

17.2                         The Issuer will pay the expenses referred to in the previous
Subsection if the transactions contemplated by this Agreement are completed or
if the transactions contemplated by this Agreement are not completed due to a
failure of the Issuer to comply with the terms of this Agreement.

 

17.3                         The Agent may, from time to time, render accounts for its expenses
in connection with the Private Placement to the Issuer for payment on or before
the dates set out in the accounts.

 

17.4                         The Issuer authorizes the Agent to deduct its reasonable expenses in
connection with the Private Placement from the proceeds of the Private
Placement and any advance payments made by the Issuer, including expenses for
which an account has not yet been rendered.

 

18.                             INDEMNITY

 

18.1                         The Issuer (the “Indemnitor”)
hereby agrees to indemnify and hold the Agent, and its affiliates, and each of
their directors, officers, employees and agents (hereinafter referred to as the
“Personnel”) harmless from and
against any and all losses (other than loss of profits), fees, claims, actions
(including shareholder actions, derivative actions or otherwise), damages,
obligations, or liabilities, whether joint or several, and will reimburse the
Agent and/or Personnel for all reasonable expenses including the reasonable fees
and expenses of their counsel), that may be incurred in advising with respect
to and/or defending any actual or threatened claims, actions, suits,
investigations or proceedings to which the Agent and/or the Personnel may
become subject or otherwise involved in any capacity under any statute or
common law, or otherwise insofar as such expenses, losses, claims, damages,
liabilities or actions arise out of or are based, directly or indirectly, upon
the performance of professional services rendered to the 

 

19

 

Indemnitor by
the Agent and the Personnel hereunder, or otherwise in connection with the
matters referred to in this Agreement (including the aggregate amount paid in
reasonable settlement of any such actions, suits, investigations, proceedings
or claims that may be made against the Agent and/or the Personnel, provided
that the Indemnitor has agreed to such settlement), provided, however, that
this indemnity shall not apply to the extent that a court of competent
jurisdiction in a final judgment that has become non-appealable shall determine
that:

 

(a)                                  the Agent and/or the Personnel
have been negligent or have committed wilful misconduct or any fraudulent or
illegal act or acted in bad faith in the course of such performance; and

 

(b)                                 the expenses, losses, claims,
damages or liabilities, as to which indemnification is claimed, were directly
caused by the negligence, wilful misconduct, illegality or fraud or bad faith
referred to in Section 18.1(a).

 

18.2                           Without
limiting the generality of the foregoing, this indemnity shall apply to all
expenses (including legal expenses), losses, claims and liabilities that the
Agent may incur as a result of any action or litigation that may be threatened
or brought against the Agent.

 

18.3                           If for any
reason (other than the occurrence of any of the events itemized in Sections
18.1(a) and 18.1(b) above), the foregoing indemnification is
unavailable to the Agent or any Personnel 
held unenforceable, although otherwise applicable in accordance with its
terms then the Indemnitor shall contribute to the amount paid or payable by the
Agent or any Personnel  for which such
indemnification is held unenforceable in such proportion as is appropriate to
reflect not only the relative benefits received by the Indemnitor on the one
hand and the Agent or any Personnel on the other hand but also the relative
fault of the Indemnitor and the Agent or any Personnel, as well as any relevant
equitable considerations; provided that to the extent permitted by applicable
law, in no event shall the Agent and/or Personnel be required to contribute an
aggregate amount in excess of the aggregate fees actually paid to the Agent
under this Agreement.

 

18.4                           The
Indemnitor agrees that in case any legal proceeding shall be brought against
the Indemnitor and/or the Agent by any governmental commission or regulatory
authority or any stock exchange or other entity having regulatory authority,
either domestic or foreign, or shall investigate the Indemnitor and/or the
Agent, and/or any Personnel of the Agent shall be required to testify in
connection therewith or shall be required to respond to procedures designed to
discover information regarding, in connection with, or by reason of the
performance of professional services rendered to the Indemnitor by the Agent,
the Agent shall have the right to employ its own counsel in connection
therewith provided the Agent acts reasonably in selecting such counsel, and the
reasonable fees and expenses of such counsel as well as the reasonable costs
(including an amount to reimburse the Agent for time spent by the Agent’s
Personnel in connection therewith) and out-of-pocket expenses incurred by their
Personnel in connection therewith.

 

18.5                           Promptly
after receipt of notice of the commencement of any legal proceeding against the
Agent or any of the Personnel or after receipt of notice of the commencement or
any investigation, which is based, directly or indirectly, upon any matter in
respect of which indemnification may be sought from the Indemnitor, the Agent
or Personnel, as applicable,  will notify
the Indemnitor in writing of the commencement thereof and, throughout the
course 

 

20

 

thereof, will
provide copies of all relevant documentation to the Indemnitor, will keep the
Indemnitor advised of the progress thereof and will discuss with the Indemnitor
all significant actions proposed. 
However, the failure by the Agent to notify the Indemnitor will not
relieve the Indemnitor of its obligations to indemnify the Agent and/or any
Personnel except as and to the extent that failure of such timely notice
materially prejudices the Indemnitor. 
The Indemnitor shall, on behalf of itself and the Agent and/or any
Personnel, as applicable, be entitled to (but not required) to assume the
defence of any suit brought to enforce such legal proceeding; provided,
however, that the defence shall be conducted through legal counsel acceptable
to the Agent and/or any Personnel, as applicable, acting reasonably, that no
settlement of any such legal proceeding may be made by the Indemnitor without
the prior written consent of the Agent and/or any Personnel, as applicable, and
none of the Agent and/or any Personnel, as applicable, shall be liable for any settlement
of any such legal proceeding unless it has consented in writing to such
settlement, such consent not to be unreasonably withheld.  In the event, however, that such Agent and/or
Personnel reasonably determines in its judgment that representation by common
counsel would be inappropriate due to actual or potential differing interests
or if the Indemnitor fails to assume the defense of the action, suit,
proceeding or investigation in a timely manner, then such Agent and/or
Personnel may employ separate counsel to represent or defend it in any action,
suit, proceeding or investigation and the Indemnitor will pay the reasonable
fees and disbursements of such counsel; provided, however, that the Indemnitor
will not be required to pay the fees and disbursements of more than one
separate counsel for the Agent and Personnel collectively in any jurisdiction
in any single action or proceeding.  In
any action or proceeding the defense of which the Indemnitor assumes, the Agent
and/or Personnel will have the right to participate in such litigation and to
retain its own counsel at the sole expense of such Agent and/or Personnel.

 

18.6                           The
indemnity and contribution obligations of the Indemnitor shall be in addition
to any liability which the Indemnitor may otherwise have, shall extend upon the
same terms and conditions to the Personnel of the Agent and shall be binding
upon and inure to the benefit of any successors, assigns, heirs and personal
representatives of the Indemnitor, the Agent and any of the Personnel of the
Agent. The foregoing provisions shall survive the completion of professional
services rendered under this Agreement or any termination of this Agreement.

 

19.                               ASSIGNMENT AND SELLING GROUP
PARTICIPATION

 

19.1                           The Agent
will not assign this Agreement or any of its rights or obligations under this
Agreement or, with respect to the Securities, enter into any agreement in the
nature of an option or a sub-option unless and until, for each intended
transaction, the Agent has obtained the prior written consent of the Issuer,
and any required notice has been given to and accepted by the Regulatory
Authorities.

 

19.2                           The Agent
may offer selling group participation in the normal course of the brokerage
business to selling groups of other licensed dealers, brokers and investments
dealers, who may or who may not be offered part of the Agent’s Fee.

 

20.                               NOTICE

 

20.1                           Any notice
under this Agreement will be given in writing and must be delivered or sent by
facsimile transmission to the party to which notice is to be given at the
address indicated above, or at another address designated by the party in
writing.

 

21

 

20.2         If
notice is sent by facsimile transmission or is delivered, it will be deemed to
have been given at the time of transmission or delivery.

 

21.          TIME

 

21.1         Time is
of the essence of this Agreement.

 

22.          SURVIVAL OF REPRESENTATIONS AND
WARRANTIES

 

22.1         The representations, warranties, covenants and indemnities of the
Issuer and the Agent contained in this Agreement will survive Closing for a
period of two years.

 

23.          LANGUAGE

 

23.1         This
Agreement is to be read with all changes in gender or number as required by the
context.

 

24.          ENUREMENT

 

24.1         This
Agreement enures to the benefit of and is binding on the parties to this
Agreement and their successors and permitted assigns.

 

25.          CURRENCY

 

25.1         All
references in this Agreement to dollars, unless otherwise specifically
indicated, are expressed in United States currency.

 

26.          HEADINGS

 

26.1         The
headings in this Agreement are for convenience of reference only and do not
affect the interpretation of this Agreement.

 

27.          ENTIRE AGREEMENT

 

27.1         This
Agreement constitutes the entire agreement and supersedes any other previous
agreements between the parties and there are no other terms, conditions,
representations or warranties whether express, implied, oral or written by the
Issuer or the Agent.

 

28.          COUNTERPARTS

 

28.1         This
Agreement may be executed in two or more counterparts and may be delivered by
facsimile or other electronic transmission, each of which will be deemed to be
an original and all of which will constitute one agreement, effective as of the
reference date given above.

 

29.          LAW

 

29.1         This
Agreement is governed by the law of the province of British Columbia, and the
parties hereto irrevocably attorn and submit to the jurisdiction of the courts
of the province of British Columbia with respect to any dispute related to this
Agreement.

 

22

 

This document was executed and
delivered as of the date given above:

 

 

	
   

  	
   

  	
  VISTA GOLD CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  

 

 

 

	
   

  	
   

  	
  CASIMIR
  CAPITAL L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Richard Sands 

  Chief Executive Officer

  

 

23

 

APPENDIX I

 

AGENT’S
CERTIFICATE

 

In connection with the private
placement of Notes of Vista Gold Corp. (the “Issuer”)
pursuant to the agency agreement dated for reference February       ,
2008 (the “Agency Agreement”)
between the Issuer and Casimir Capital L.P. (the “Agent”), the undersigned Agent does hereby certify as follows:

 

(a)                                 the Notes have been offered and
sold in the United States only through the Agent, which was on the dates of
such offers and sales, and is on the date hereof, a duly registered broker or
dealer pursuant to Section 15(b) of the U.S. Exchange Act and under
the securities laws of each state in which such offers and sales were made
(unless exempted from the respective state’s broker dealer registration
requirements) and was and is a member in good standing with FINRA and is in
good standing with the SEC;

 

(b)                                all offers and sales of Notes in
the United States or to, or for the benefit or account of, U.S. Persons have
been effected through the Agent in accordance with all applicable federal and
states laws and regulations governing the registration and conduct of
securities brokers and dealers;

 

(c)                                 each offeree that was in the
United States, or was acting for the benefit or account of, a U.S. Person or a
person in the United States, was provided with a copy of the subscription
agreement in the form agreed between the Issuer and the Agent relating to the
offering of the Notes (“Subscription
Agreement”) and we have not used any other written materials in
connection with the offer or sale of the Notes;

 

(d)                                immediately prior to transmitting
the Subscription Agreement to such offerees, we had reasonable grounds to
believe and did believe that each such offeree was an Accredited Investor and,
on the date hereof, we have reasonable grounds to believe and do believe that
each Purchaser that we have arranged to purchase Notes from the Issuer is an
Accredited Investor;

 

(e)                                 no form of General Solicitation
or General Advertising was used by us, in connection with the offer or sale of
the Notes and no offers were made in any manner involving a public offering
within the meaning of Section 4(2) of the U.S. Securities Act;

 

(f)                                   the offering of the Notes has
been conducted in accordance with the terms of the Agency Agreement; and

 

(g)                                prior to completion of any sale
of Notes, we caused each such Purchaser to execute a Subscription Agreement,
including a properly and duly completed U.S. Accredited Investor Status
Certificate.

 

Terms used in this certificate
have the meanings given to them in the Agency Agreement, unless otherwise
defined herein.

 

 

Dated this [l] day of February 2008.

 

 

	
   

  	
  CASIMIR
  CAPITAL L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  

 

2

 

[Schedule A]

 

 

[Schedule B]Exhibit 10.2

 

SUBSCRIPTION AGREEMENT

10% Senior Secured Notes, each in the principal amount
of US$1,000

 

	
  TO:

  	
   

  	
  Vista Gold Corp. (the “Corporation”)

  
	
  AND TO:

  	
   

  	
  Casimir Capital L.P. (the “Agent”)

  

 

The undersigned (hereinafter referred to as the “Subscriber”) hereby irrevocably agrees to
subscribe, at a subscription price of US$1,000 each, for 10% senior secured
notes of the Corporation, each in the principal amount of US$1,000 (each a “Senior Secured Note” or “Note”). 
Each Senior Secured Note is convertible, in whole or in part, at the
option of the Subscriber, at any time following the closing date and up to and
including maturity into fully paid common shares (the “Note Shares”) at US$6.00
per Note Share.  The Company shall have
the right to force the conversion of the Notes on the date which is the 15th
trading day after receiving notice from the Company that the weighted average
price of the common shares on the American Stock Exchange has been equal to or
greater than US$9.00 for a period of at least 15 consecutive trading days
commencing on the first anniversary of the closing date of the offering (an “Acceleration Event”).  The Senior Secured Notes shall be issued
pursuant to and shall have the terms and conditions more particularly described
in an indenture to be entered into between the Corporation and a third party
institutional trustee, on or before the Closing Date.  The Subscriber hereby irrevocably agrees to
subscribe for the Notes upon and subject to the terms and conditions set forth
in the attached “TERMS AND CONDITIONS OF SUBSCRIPTION FOR SECURITIES OF VISTA
GOLD CORP.” (of which this face page forms a part and which, together with
the attached Schedules, are referred to as the “Subscription Agreement”).

 

	
   

  	
   

  	
   

  	
   

  
	
  (Name of subscriber - please print) (hereinafter referred to as the “Subscriber”)

  	
   

  	
  Number of Notes  

  	
  Aggregate Subscription
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  The Subscriber owns,
  directly or indirectly, the following

  	
   

  
	
         (Authorized Signature)

  	
   

  	
  securities of the
  Corporation:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Official Capacity or Title if Subscriber is a corporation - please
  print)

  	
   

  	
  The Subscriber is  o or is not o an insider of the Corporation; or The
  Subscriber is o or is not o a member of the pro group of the
  Corporation
                   [Please check the applicable box(s)]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Please print name of individual whose signature appears above if
  different than the name of the Subscriber printed above)

  	
   

  	
  Please complete if purchasing as agent or trustee for
  a principal (beneficial purchaser) (a “Disclosed Principal”) and not
  purchasing as trustee or agent for accounts fully managed by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Subscriber’s Address)

  	
   

  	
  Name of Disclosed Principal (please print)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Disclosed Principal’s Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Telephone Number)                       (Email
  Address)

  	
   

  	
  Disclosed Principal’s Telephone Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Register the Senior Secured Notes as set forth below:

  	
   

  	
  Deliver the Senior Secured Notes as set forth below:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Account reference, if applicable

  	
   

  	
  Account reference, if applicable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone number

  	
   

  
						

 

ACCEPTANCE: The Corporation hereby accepts the
subscription as set forth above on the terms and conditions contained in this
Subscription Agreement and the Corporation represents and warrants to the
Subscriber that the representations and warranties made by the Corporation to
the Agent in the Agency Agreement (as defined below) are true and correct in
all material respects as of the Closing Date (as defined below) (other than as
waived in whole or in part by the Agent) and that the Subscriber is entitled to
rely thereon as if the Subscriber were a party thereto.

 

	
  DATED this          day of                       ,
  2008.

  	
  VISTA GOLD CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
   

  
				

 

THIS IS THE FIRST PAGE OF A SUBSCRIPTION AGREEMENT
COMPRISING 17 PAGES (NOT INCLUSIVE OF SCHEDULES).  THE SUBSCRIBER MUST PROVIDE THE INFORMATION
REQUESTED ON THIS FACE PAGE, EXECUTE THIS FACE PAGE AND, IN ALL CASES, SCHEDULE
“A” - U.S. ACCREDITED INVESTOR STATUS CERTIFICATE, AND RETURN ONE FULLY
EXECUTED COPY OF THE SUBSCRIPTION AGREEMENT, INCLUDING THESE DOCUMENTS (WHERE
APPLICABLE) WITH THE SUBSCRIPTION FUNDS PAYABLE TO THE AGENT.

 

 

TERMS AND CONDITIONS OF SUBSCRIPTION FOR
SECURITIES

OF VISTA GOLD CORP.

 

Recitals:

 

WHEREAS the
Subscriber has agreed to invest an amount equal to the Investment (as
hereinafter defined) in the Corporation (as hereinafter defined) by subscribing
for the Notes;

 

WHEREAS the
Subscriber acknowledges that the issuance of the Notes is part of a larger
offering of up to 30,000 Notes at an issue price of US$1,000 per Note for
aggregate gross proceeds of up to US$30,000,000 and is also subject to an
over-allotment option, to be exercised at the sole discretion of Casimir
Capital L.P. to sell up to an additional US$2,000,000 in Notes; and

 

WHEREAS in
consideration of the Subscriber entering into the Subscription Agreement and
subscribing for the Notes, the Corporation agrees to issue the Notes, upon the
terms and conditions herein set forth;

 

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT
in consideration of the premises and agreements herein contained, it is
mutually declared, covenanted and agreed by and between the parties as follows.

 

1.             Definitions

 

In the Subscription Agreement, including the
recitals hereof, unless the context otherwise requires:

 

(a)           “Accredited Investor” means “accredited
investor” as defined in subsection (a) of Rule 501 of Regulation D;

 

(b)          “Agent” means Casimir Capital L.P.;

 

(c)           “Agency Agreement” means the agency
agreement in respect of the Offering to be dated on or before the Closing Date
between the Corporation and the Agent pursuant to which the Agent, in
connection with the offer and sale of the Notes, will receive a fee from the
Corporation;

 

(d)          “Closing” means the delivery and payment for
the Notes, which may occur in stages on different dates, to take place at 10:00 a.m.,
P.S.T., on the Closing Date;

 

(e)           “Closing Date” means a date on which a
Closing occurs currently scheduled for February ·,
2008 or such earlier or later dates, which the Corporation and the Agent may
agree;

 

(f)             “Common Share” means one (1) fully paid
and non-assessable common share in the share capital of the Corporation;

 

(g)          “Corporation” means Vista Gold Corp.;

 

(h)          “Investment” means the Subscription Price
multiplied by the total number of Notes subscribed for hereunder, which total
amount has been paid by the Subscriber to the Agent for the Corporation for the
Notes pursuant to Clause 2.2 hereof;

 

(i)              “Note Shares” means the Common Shares
issuable on conversion of the Senior Secured Notes;

 

 

(j)              “Offering” means the offering of up to
30,000 Notes by way of private placement for aggregate proceeds of up to
US$30,000,000, with an over-allotment option, to be exercised at the sole
discretion of Casimir Capital L.P. to sell up to an additional US$2,000,000 in
Notes;

 

(k)           “Regulation D” means Regulation D promulgated by the SEC under the U.S. Securities Act;

 

(l)              “Regulation S” means Regulation S promulgated by the SEC under the U.S.
Securities Act;

 

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

 

(n)          “Securities” means the Senior Secured Notes
and the Note Shares;

 

(o)          “Securities Laws” means, as applicable, the
securities laws, regulations, rules, rulings and orders in each of the
provinces of Canada, the applicable policy statements issued by the securities
regulators in each of the provinces of Canada and the rules of the Toronto
Stock Exchange and the American Stock Exchange, as well as the U.S. Securities
Act , the U.S. Exchange Act, state securities laws and, in each case the rules and
regulations adopted thereunder;

 

(p)          “Senior Secured Note” or “Note” means a 10% senior secured note of
the Corporation in the principal amount of US$1,000, issued pursuant to and
having the terms and conditions more particularly described in indenture to be
entered into between the Corporation and a third party institutional trustee,
on or before the Closing Date

 

(q)          “Subscription Price” means US$1,000 per
Note;

 

(r)             “U.S. Exchange Act” means the United States
Securities Exchange Act of 1934, as amended;

 

(s)           “U.S. Person” means a U.S. person as defined
in Regulation S;

 

(t)             “U.S. Securities Act” means the United
States Securities Act of 1933, as amended; and

 

(u)          “U.S. Subscriber” means (a) any U.S.
Person purchasing the Notes, (b) any person purchasing the Notes in the
United States, (c) any person purchasing Notes on behalf of, or for the
account or benefit of, any U.S. Person or person in the United States, (d) any
person that receives or received an offer to purchase the Notes while in the
United States, and (e) any person that is in the United States at the time
the Purchaser’s buy order was made or this Subscription Agreement was executed
or delivered.

 

1.2           In the Subscription
Agreement the headings of the articles and clauses are inserted for convenience
of reference only and shall not affect the meaning or construction thereof.

 

1.3           In the Subscription
Agreement, words importing the singular include the plural, words importing the
masculine gender include the feminine and vice versa.

 

1.4           In the Subscription
Agreement, except as otherwise stated, all dollar amounts are expressed in
United States dollars.

 

2

 

2.             Subscription for
Notes

 

2.1           The Subscriber hereby
irrevocably subscribes for and agrees to purchase from the Corporation, subject
to the terms and conditions set forth herein, the number of Notes as set forth
on the face page hereof at the Subscription Price and for the total
Investment as set forth on the face page hereof and the Corporation
accepts such subscription for Notes in accordance with the terms hereof.

 

2.2           The Subscriber agrees
to pay to the Agent the total Investment as set forth and described on the face
page hereof by delivering to the Agent, concurrent upon the execution and
delivery of the Subscription Agreement, a certified cheque, bank draft or money
order payable to the Agent in the full amount of the Investment for the Notes
subscribed for hereunder.

 

2.3           The Subscriber hereby
acknowledges that acceptance of this subscription is subject to rejection or
allotment, in whole or in part, by the Corporation.  If this Subscription Agreement is rejected in
whole or in part, the Subscriber acknowledges that the unused portion of the
Investment will be promptly returned to it without interest.  Subject to the terms hereof, this
subscription will be effective upon its acceptance by the Corporation and
subject to receipt of all applicable regulatory and stock exchange
approvals.  This private placement is not
subject to a minimum subscription level, and upon Closing, all subscription
proceeds will be retained by the Corporation in accordance with the terms
hereof.

 

2.4           The Subscriber has
completed, executed and returned the following documents to the Agent:

 

(a)    one
(1) fully executed copy of the Subscription Agreement; and

 

(b)    Schedule “A”, U.S. Accredited Investor
Status Certificate, for each Subscriber.

 

2.5           The Subscriber agrees
that funds will be wired for credit to the account of: Ogilvy Renault LLP, in trust, Acct # 400-495-8,
IBAN#: 003 00006, Transit#: 00006, Swift #: ROYCCAT-2, ABA #: 021000021, Address of
account: Royal Bank of Canada,
90 Sparks Street Ottawa, Ontario  K1P 5T6,
representing the aggregate Investment for Notes subscribed for hereunder, or
such other method of payment against delivery of the Notes as the Corporation
may accept, not later than 4:00 p.m. (E.S.T.) on the day that is not less
than two (2) business days prior to the Closing Date or such other date or
place as the Corporation may advise.

 

3.             Closing

 

3.1           The Closing will be
completed on the Closing Date at the offices of Borden Ladner Gervais LLP,
counsel for the Corporation at Vancouver, British Columbia, Canada or such
other location as the Corporation and the Agent may agree.

 

3.2           At the Closing Time,
subject to the terms of the Agency Agreement, the Agent will deliver all
completed subscription agreements, including this Subscription Agreement and
the aggregate Investment against delivery by the Corporation of the certificates
representing the Senior Secured Notes.

 

3.3           The representations,
warranties, covenants and acknowledgments of the Subscriber herein are made by
the Subscriber with the intent that they be relied upon by the Corporation and
the Agent in determining the Subscriber’s suitability as a purchaser of Notes,
that such representations, warranties, covenants and acknowledgments will be
true and correct on the Closing Date and that the Subscriber will indemnify the
Corporation and the Agent and their respective affiliates, shareholders,
directors, officers and employees and agents from and against all losses,
claims, 

 

3

 

costs, expenses and damages or liabilities
which any of them may suffer or incur caused or arising from a breach
thereof.  The Subscriber undertakes to
immediately notify the Corporation at VISTA
GOLD CORP., 7961 Shaffer Parkway, Suite 5, Littleton, CO
80127  U.S.A., Fax: (720) 981-1186
Attention: Chief Financial Officer and the Agent at CASIMIR CAPITAL L.P. of 489
Fifth Avenue, Second Floor, New York, NY 10017 
U.S.A., Fax: (212) 798-1399, Attention: Dov Wiener of any change in any
statement or other information relating to the Subscriber set forth herein or
in any document delivered herewith, which takes place prior to the Closing of
the sale of the Notes.

 

3.4           The Subscriber
acknowledges that the Agent has agreed to offer the Notes on a “private
placement” basis and, in connection therewith, the Corporation and the Agent
have entered into, or will enter into prior to the Closing Date, the Agency
Agreement, pursuant to which the Agent, in connection with the offer and sale
of the Notes, will receive a fee from the Corporation.  The Subscriber hereby irrevocably authorizes
the Agent, in its sole discretion: (a) to act as its representative at the
closing and to execute in its name and on its behalf all closing receipts and
documents required; (b) to complete or correct any errors or omissions in
any form or document provided by the Subscriber, including this Subscription
Agreement; (c) to receive on its behalf certificates representing the
Senior Secured Notes purchased under this Subscription Agreement; (d) to
negotiate, settle and approve any opinions, certificates or other documents
addressed to the Subscriber; and (e) to waive, in whole or in part, or to
vary or amend, any representations or warranties or conditions for the
Subscriber’s benefit contained in this Subscription Agreement and the Agency
Agreement or any ancillary or related document.

 

3.5           The Corporation and the
Agent shall be entitled to rely on delivery of a facsimile copy of the
Subscription Agreement and acceptance by the Corporation of such agreement
shall be legally effective to create a valid and binding agreement between the
Subscriber and the Corporation in accordance with the terms hereof.

 

4.             Representations,
Warranties and Covenants of Subscriber

 

4.1           The Subscriber, for
itself and on behalf of each beneficial purchaser for whom it acts, represents,
warrants, covenants and certifies to the Corporation and the Agent that:

 

(a)                                  it
has had the opportunity to be independently advised as to restrictions with
respect to trading in the Senior Secured Notes and the Note Shares imposed by
applicable securities legislation in the jurisdiction in which it resides and,
if applicable, is purchasing the Notes, confirms that no representation has
been made to it by or on behalf of the Corporation with respect thereto,
acknowledges that it is aware of the characteristics of the Senior Secured Notes,
the risks relating to an investment therein and of the fact that it may not be
able to resell the Senior Secured Notes and the Note Shares except pursuant to
exemptions under applicable securities legislation and regulatory policy until
the expiry of the applicable hold periods and in compliance with other
requirements of applicable securities laws and regulatory policy and that the
certificates representing the Senior Secured Notes and the Note Shares will
bear legends to this effect;

 

(b)                                 the
Subscriber is aware that:

 

(i)                                      no
securities commission or similar regulatory authority has reviewed or passed on
the merits of the Notes;

 

(ii)                                   there
is no government or other insurance covering the Notes;

 

(iii)                                there
are risks associated with the purchase of the Notes;

 

4

 

(iv)          there
are restrictions on the Subscriber’s ability to resell the Senior Secured Notes
and Note Shares and it is the responsibility of the Subscriber to ascertain
what these restrictions (U.S., Canadian or otherwise) are and to comply with
these restrictions before selling the Senior Secured Notes and Note Shares; and

 

(v)           the
Corporation has advised the Subscriber that the Corporation is relying on an
exemption from the requirements to provide the Subscriber with a prospectus and
to sell the Notes through a person or company registered to sell the Notes
under the Securities Act (British
Columbia)  and other applicable
securities laws and, as a consequence of acquiring securities pursuant to this
exemption, certain protections, rights and remedies provided by the Securities Act (British Columbia)  and other applicable securities laws,
including statutory rights of recission or damages, will not be available to
the Subscriber;

 

(c)                                  the
Subscriber is aware that the Senior Secured Notes and the Note Shares have not
been registered under the U.S. Securities Act or under any state securities or “blue
sky” laws, and accordingly such Securities are subject to restrictions on
transfer and resale and may not be offered, sold, gifted, pledged,
hypothecated, assigned or otherwise transferred without registration under the
U.S. Securities Act and the securities laws of all applicable states of the
United States, unless an exemption from registration is available;

 

(d)                                 the
decision to execute the Subscription Agreement and purchase the Notes agreed to
be purchased hereunder has not been based upon any material information
concerning the Corporation that has not been publicly disclosed, nor upon any
oral or written representation as to fact or otherwise made by or on behalf of
the Corporation or the Agent, and the decision is based entirely on the
Subscriber’s review of information which has been filed by the Corporation with
the applicable securities commissions or stock exchange or other authority in
compliance, or intended compliance, with applicable securities legislation
(collectively, the “Public Record”);

 

(e)            it
has had the opportunity to ask questions and receive answers concerning the
Corporation and the Notes, has had access to the Public Record and has made
such investigations, if any, concerning the Corporation as it has considered
necessary so as to make an informed investment decision in connection with an
investment in the Notes and the offer and sale of the Notes has not been
accompanied by any advertisement nor any general solicitation nor general
advertising as such terms are used under Rule 502(c) under the U.S.
Securities Act, including but not limited to any advertisement in printed media
of general and regular paid circulation, radio, television or
telecommunications, including electronic display, with respect to the offering
of the Notes and the Subscriber has not become aware of any such general
solicitation or general advertising;

 

(f)            it
has had the opportunity to obtain independent legal, income tax and investment
advice with respect to its subscription for the Notes and applicable resale
restrictions in respect of the Senior Secured Notes and the Note Shares and,
accordingly, has had the opportunity to acquire an understanding of the
meanings of all terms contained herein relevant to the Subscriber for the
purpose of giving the representations, warranties and covenants contained
herein;

 

(g)           the
Subscriber has had the opportunity to consult its own legal advisors with
respect to applicable resale restrictions and the Subscriber is solely
responsible (and the Corporation is not responsible whatsoever) for compliance
with applicable resale restrictions;

 

5

 

(h)                                  the
Subscription Agreement is not enforceable by the Subscriber unless and until it
has been accepted by the Corporation;

 

(i)             the
Subscriber and any beneficial purchaser for whom the Subscriber is acting are
resident at the address set out on the face page of the Subscription
Agreement as the “Subscriber’s Address” and “Beneficial Purchaser’s Address”;

 

(j)             except
as provided in subsection 4.1(k) hereof, the Subscriber is purchasing the
Subscriber’s Notes as principal for its own account, and not for the benefit of
any other person;

 

(k)            except
as provided in subsection 4.1(k) hereof, the Subscriber is purchasing the
Subscriber’s Notes for investment only and not with a view to resale or
distribution.  The Subscriber is aware
that no prospectus or similar disclosure document has been filed in connection
with the offer or sale of the Notes, and it is purchasing the Notes pursuant to
an exemption from the prospectus requirements under applicable securities laws
and, as a consequence: (i) it is restricted from using most of the civil
remedies available under applicable securities laws; (ii) it may not
receive information that would otherwise be required to be provided to it under
applicable securities laws; and (iii) the Corporation is relieved of certain
obligations that would otherwise apply under applicable securities laws;

 

(l)             in
the case of the purchase by the Subscriber of the Notes as agent or trustee for
any Disclosed Principal, each beneficial purchaser of the Notes for whom the
Subscriber is acting is purchasing its Notes as principal for its own account,
and not for the benefit of any other person, for investment only and not with a
view to resale or distribution, and complies with and meets the criteria in
section 5.1(a) in respect of the subscription provided hereby, and the
Subscriber has due and proper authority to act as agent or trustee for and on
behalf of such beneficial Subscriber in connection with the transactions
contemplated hereby and this Subscription Agreement has been duly authorized,
executed and delivered by or on behalf of, and constitutes a legal, valid and
binding agreement of, such beneficial Subscriber;

 

(m)           if
the Subscriber is subscribing as agent for a Disclosed Principal, it has
disclosed the name of the Disclosed Principal on the face page of this
Subscription Agreement and acknowledges that the Corporation may be required by
law to disclose to certain regulatory authorities the identity of each
Disclosed Principal for whom the Subscriber is acting.

 

(n)           the
representations and warranties of the Subscriber contained herein will be true
and correct both as of the execution of the Subscription Agreement and as of
the Closing Date and shall survive the completion of the issuance of the Notes
for a period of two (2) years following the Closing Date;

 

(o)           the
Subscriber will resell the Senior Secured Notes and the Note Shares only in
accordance with the provisions of applicable securities legislation and stock
exchange rules;

 

(p)           if
an individual, the Subscriber is of full age of majority and is legally
competent to execute the Subscription Agreement and take all action pursuant
thereto;

 

6

 

(q)           the
Subscription Agreement has been duly and validly authorized, executed and delivered
by and constitutes a legal, valid, binding and enforceable obligation of the
Subscriber;

 

(r)            the
Subscriber has such knowledge in financial and business affairs as to be
capable of evaluating the merits and risks of its investment and is able to
bear the economic risk of loss of its investment;

 

(s)            the
Subscriber understands that the sale and delivery of the Notes is conditional
upon such sale being exempt from the requirements as to registration or the
filing of a prospectus with any governmental or regulatory entity or upon the
issuance of such orders, consents or approvals as may be required to permit
such sale without the requirement of registration or filing a prospectus;

 

(t)                                     if
the Subscriber is a corporation, partnership, unincorporated association or
other entity, the person executing the Subscription Agreement on behalf of the
Subscriber has the necessary power and authority to do so and the Investment
contemplated hereby has been duly authorized by all necessary action of the
Subscriber;

 

(u)                                  if
required by applicable securities legislation, policy or order or securities
commission, stock exchange or other regulatory authority, the Subscriber will
execute, deliver, file and otherwise assist the Corporation in filing such
reports, undertakings and other documents with respect to the issue of the
Notes, including, without limitation, the schedules hereto as applicable; and

 

(v)                                  the
Subscriber acknowledges that the Corporation’s counsel and the Agent’s counsel
are acting as counsel to the Corporation and the Agent, respectively, and not
as counsel to the Subscriber.

 

5.             Further
Representations, Warranties and Covenants of the Subscriber

 

5.1           The
Subscriber hereby represents, warrants and covenants to the Corporation and the
Agent:

 

(a)            the Subscriber is an
Accredited Investor and is acquiring the Notes for its own account or for the
account of another Accredited Investor over which the Subscriber exercises sole
investment direction and not with a view to resale or distribution of the
Senior Secured Notes or Note Shares in violation of United States Securities
Laws and the Subscriber certifies that it and each Disclosed Principal is a
resident in the jurisdiction set out on the face page of this Subscription
Agreement. Such address was not created and is not used solely for the purpose
of acquiring the Notes and the Subscriber was solicited to purchase Notes, and
executed this Subscription Agreement, in such jurisdiction. The Subscriber has
completed the U.S. Accredited Investor Status Certificate attached hereto as Schedule
A and such certificate contains information about the Subscriber that is
true and accurate as of the date of signing and will be true and correct as of
the Closing;

 

(b)           the subscription for
the Notes has not been made through or as a result of, and the distribution of
the Senior Secured Notes is not being accompanied by any general solicitation
or general advertising (as those terms are used in Regulation D), including
advertisements, articles, notices or other communications published in any
newspaper, magazine or similar media, or broadcast over radio, television or
the internet, or any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising;

 

7

 

(c)                                   there
are risks associated with the purchase of and investment in the Senior Secured
Notes and Note Shares and the Subscriber is knowledgeable and or experienced in
business and financial matters and is capable of evaluating the merits and
risks of an investment in the Senior Secured Notes and Note Shares and fully
understands the restrictions on resale of the Senior Secured Notes and Note
Shares and is capable of bearing the economic risk of the investment, including
the loss of its entire investment;

 

(d)                                  the
Subscriber has not been formed solely for the purpose of entering into the
transactions described herein;

 

(e)                                   the
Senior Secured Notes shall be and the Note Shares may be subject to certain
resale restrictions in Canada under applicable Canadian Securities Laws, and
the Subscriber covenants and acknowledges that it will be solely responsible
(and neither the Corporation nor the Agent are in any way responsible) for such
compliance;

 

(f)                                     the
ability to transfer the Senior Secured Notes and Note Shares is limited by,
among other things, resale restrictions under applicable United States
Securities Laws, and the Subscriber covenants and acknowledges that it will be
solely responsible (and neither the Corporation nor the Agent are in any way
responsible) for such compliance;

 

(g)                                  the
certificates representing the Senior Secured Notes (and the Note Shares, if
issued before that date which is four months and one day after the Closing
Date) or the ownership statement issued under a direct registration system or
other electronic book-entry system, as the case may be, will bear, as of the
Closing Date, legends substantially in the following form and with the
necessary information inserted:

 

“UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
TRADE THE SECURITY BEFORE <INSERT DATE THAT IS FOUR (4) MONTHS AND ONE (1) DAY
AFTER CLOSING DATE>.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE [IF SENIOR SECURED NOTES, ADD:  “NOR ANY SECURITIES ISSUABLE UPON THE
CONVERSION OF SUCH SECURITIES”] ARE LISTED ON THE TORONTO STOCK EXCHANGE “TSX”);
HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF TSX
SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE
REPRESENTING SUCH SECURITIES IS NOT “GOOD DELIVERY” IN SETTLEMENT OF
TRANSACTIONS ON TSX.”

 

(h)                                  the
Subscriber understands and acknowledges that:

 

(i)                                      if
it decides to offer, sell or otherwise transfer any of the Senior Secured Notes
or Note Shares, such securities may be offered, sold or otherwise transferred
only pursuant to (A) an effective registration statement under the U.S.
Securities 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;

 

(ii)                                   all
certificates representing the Senior Secured Notes and Note Shares, as well as
all certificates issued in exchange for or in substitution of the foregoing 

 

8

 

securities,
until such time as the same is no longer required under applicable requirements
of the U.S. Securities Act or applicable state securities laws, shall bear the
following legend:

 

“NEITHER
THIS CERTIFICATE NOR THE SECURITIES REPRESENTED HEREBY [IF SENIOR SECURED
NOTES, ADD:  “NOR ANY SECURITIES ISSUABLE
UPON THE CONVERSION 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 [IF SENIOR SECURED NOTES,
ADD:  “NOR ANY SECURITIES ISSUABLE UPON
THE CONVERSION 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.”

 

(iii)                                if
any Senior Secured Notes or Note Shares are being resold pursuant to Rule 144
under the U.S. Securities Act, the legend may be removed by delivery to the
registrar and transfer agent and the Corporation of an opinion of counsel, of
recognized standing reasonably satisfactory to the Corporation, that such
legend is no longer required under applicable requirements of the U.S.
Securities Act or state securities laws.

 

(i)                                      it
understands and acknowledges that the Corporation has the right to instruct the
transfer agent for the Senior Secured Notes and Note Shares not to record a
transfer by any person without first being notified by the Corporation that it
is satisfied that such transfer is exempt from or not subject to registration
under the U.S. Securities Act and any applicable state securities laws;

 

(j)                                    the
Subscriber consents to the Corporation making a notation on its records or
giving instructions to any transfer agent of the Subscriber’s Senior Secured Notes
or Note Shares in order to implement the restrictions on transfer set forth and
described herein;

 

(l)                                    the
Subscriber has had the opportunity to review this Subscription Agreement and
the Schedule(s) attached hereto and the transactions contemplated by this
Subscription Agreement and fully understands the same;

 

(m)                              the
Subscriber is solely responsible for its own due diligence investigation of the
Corporation and its business, for its own analysis of the merits and risks of
its investment in the Subscriber’s Senior Secured Notes or Note Shares made
pursuant to this Subscription Agreement and for its own analysis of the terms
of its investment;

 

(n)                                the
Senior Secured Notes purchased or obtained pursuant to this Subscription
Agreement and any Note Shares issued upon conversion of any such Senior Secured
Notes are and 

 

9

 

will be “restricted securities”
within the meaning of Rule 144 under the U.S. Securities Act and the
Subscriber is familiar with such rule and understands the resale
limitations imposed thereby and the U.S. Securities Act and understands that
for so long as such securities remain “restricted securities”, they may not be
deposited into any unrestricted depository facility established or maintained
by any depository bank;

 

(o)                                the
Agent and/or its directors, officers, employees, agents, representatives and
controlling shareholders assume no responsibility or liability of any nature
whatsoever for the accuracy or adequacy of any such publicly available
information concerning the Corporation or as to whether all information
concerning the Corporation that is required to be disclosed or filed by the
Corporation under the Securities Laws has been so disclosed or filed;

 

(p)                                the
Corporation and the Agent are relying on the representations, warranties and
covenants contained herein and in the applicable Schedule(s) attached
hereto to determine the Subscriber’s eligibility to subscribe for the Notes
under applicable Securities Laws and the Subscriber agrees to indemnify the
Corporation, the Agent and each of their respective directors and officers
against a1l losses, claims, costs, expenses, damages or liabilities which any
of them may suffer or incur as a result of or arising from reliance thereon. The
Subscriber undertakes to immediately notify the Corporation of any change in
any statement or other information relating to the Subscriber set forth in such
applicable Schedule(s) which takes place prior to the Closing Date;

 

(q)                                the
Corporation is relying on an exemption from the requirement to provide the
Subscriber with a prospectus under applicable Securities Laws and, as a
consequence of acquiring the Senior Secured Notes and Note Shares pursuant to
such exemption, certain protections, rights and remedies provided by applicable
Securities Laws, including statutory rights of rescission or damages, under
Canadian Securities Laws will not be available to the Subscriber;

 

(r)                                   the
Subscriber understands and acknowledges that the Corporation is not obligated to
file and has no present intention of filing with the SEC or with any state
securities administrator any registration statement in respect of resales of
the Senior Secured Notes or Note Shares;

 

(s)                                 the
Subscriber is responsible for obtaining such legal and tax advice as it
considers appropriate in connection with the execution, delivery and
performance of this Subscription Agreement and the transactions contemplated
under this Subscription Agreement;

 

(t)                                   there
is no government or other insurance covering the Senior Secured Notes or Note
Shares;

 

(u)                                THERE ARE RISKS ASSOCIATED WITH THE PURCHASE OF THE
SENIOR SECURED NOTES AND NOTE SHARES AND THE SUBSCRIBER MAY LOSE HIS, HER
OR ITS ENTIRE INVESTMENT;

 

(v)                                the
Subscriber acknowledges that this Subscription Agreement and the Schedules
hereto require the Subscriber to provide certain personal information to the
Corporation and the Agent. Such information is being collected by the
Corporation and the Agent for the purposes of completing the Offering, which includes,
without limitation, determining the Subscriber’s eligibility to purchase the
Notes under the Securities Laws and other applicable securities laws,
registering the Senior Secured Notes and Note Shares in book-entry

 

10

 

form or preparing and
registering certificates representing Senior Secured Notes and Note Shares to
be issued to the Subscriber, as the case may be, and completing filings
required by any stock exchange or securities regulatory authority. The
Subscriber’s personal information may be disclosed by the Corporation and the
Agent to: (a) stock exchanges or securities regulatory authorities, (b) the
Canada Revenue Agency, (c) the Corporation’s registrar and transfer agent,
and (d) any of the other parties involved in the Offering, including legal
counsel and may be included in record books in connection with the Offering. By
executing this Subscription Agreement, the Subscriber is deemed to be
consenting to the foregoing collection, use and disclosure of the Subscriber’s
personal information. The Subscriber also consents to the filing of copies or
originals of any of the Subscriber’s documents described herein, including but
not limited to those described in Section 2.4 hereof, as may be required to
be filed with any stock exchange or securities regulatory authority in
connection with the transactions contemplated hereby. The Subscriber represents
and warrants that it has the authority to provide the consents and
acknowledgements set out in this paragraph on behalf of each Disclosed
Principal;

 

(w)                              the
Subscriber understands and acknowledges that the Notes may not be converted
unless an exemption is available from the registration requirements of the U.S.
Securities Act and the securities laws of all applicable states.

 

6.             Representations,
Warranties and Covenants of the Corporation

 

6.1                                   The
Subscriber shall have the benefit of and be entitled to rely upon, the
representations, warranties and covenants made by the Corporation to the Agents
and set forth in the Agency Agreement. Such representations and warranties and
covenants provisions are hereby incorporated by reference such that they shall
form an integral part of this Subscription Agreement and shall survive the
closing of the purchase and sale of the Notes and shall continue in full force
and effect, for a period of two (2) years following the Closing Date, for
the benefit of the Subscriber in accordance with the Agency Agreement.  The Corporation acknowledges that breaches of
these representations, warranties and covenants made by the Corporation to the
Agents and set forth in the Agency Agreement may give rise to a right of action
to recover damages against the Corporation at law and nothing contained herein
shall preclude the Subscriber from exercising its rights at law to bring an
action to recover damages which it may suffer or incur, directly or indirectly
as a result of or in connection with any non-fulfilment of any covenant or
agreement on the part of the Corporation under this Agreement or the Agency
Agreement or any incorrectness in or breach of any representation or warranty
of the Corporation contained in this Agreement or the Agency Agreement.

 

7.             Notice

 

7.1                                   Subject
to paragraph 7.4 of this Subscription Agreement, any notice or other communication
or instrument required or permitted to be given or delivered hereunder shall be
in writing and shall be well and sufficiently given and delivered if enclosed
in a sealed envelope, and given or delivered during regular office hours, to
the parties at their respective addresses as follows:

 

TO THE SUBSCRIBER:

 

At the address of the
Subscriber shown on the execution page hereof.

 

TO THE CORPORATION:

 

Vista Gold Corp.

 

11

 

7961 Shaffer Parkway

Suite 5

Littleton, CO 80127  U.S.A.

 

Attention:  Chief
Financial Officer

 

TO THE AGENT:

 

Casimir Capital L.P.

489 Fifth Avenue

Second Floor

New York, NY 10017  U.S.A.

 

Attention:  Dov Wiener

 

7.2           Any
notice so given shall be conclusively deemed to have been given when delivered,
if given or delivered personally.

 

7.3           Any
party may change its address for notice hereunder by notice given in the
foregoing manner.

 

7.4           Notwithstanding
paragraph 7.2 of this Subscription Agreement, the Corporation will notify the
Subscriber of the occurrence of an Acceleration Event and such notice shall be
conclusively deemed to have been received by the Subscriber when mailed by the
Corporation.

 

8.             General

 

8.1           Each
party shall from time to time, and at all times, do such further acts and
execute and deliver all such further instruments, deeds and documents as shall
be reasonably required in order to fully perform and carry out the terms of the
Subscription Agreement and to comply with applicable securities legislation.

 

8.2           This
Subscription Agreement may not be assigned by any party.

 

8.3           Except
as otherwise provided herein, the Subscription Agreement shall enure to the
benefit of and shall bind the parties hereto and their respective successors
and any permitted assigns.

 

8.4           Nothing
herein contained shall be read or construed as creating between the parties
hereto their relationship of agents, partners or joint venturers.

 

8.5           Time
is of the essence in the Subscription Agreement.

 

8.6           The
Subscription Agreement may only be amended by written agreement signed by the
Corporation and the Subscriber.

 

8.7           The
terms of the Subscription Agreement express and constitute the entire agreement
between the parties hereto pertaining to the subject matter hereof and no
implied covenant or liability of any kind is created or shall arise by reason
of these presents or anything in the Subscription Agreement contained.

 

8.8           This
Subscription Agreement shall be governed and interpreted in accordance with the
laws of the Province of British Columbia and shall for all purposes be deemed
to have been made in the Province of British Columbia and the parties hereto
irrevocably attorn to the jurisdiction of the 

 

12

 

courts of the Province of
British Columbia, and all representations and warranties contained herein shall
survive the execution of the Subscription Agreement.

 

8.9            Nothing
in the Subscription Agreement will prevent the Corporation from carrying out
any form of public or private financing, whether by the issuance of common
shares or otherwise.

 

8.10          No
waiver by any party hereto of any provision hereof shall be effective unless in
writing, and a waiver shall affect only the matter, and the occurrence thereof,
specifically identified in the writing granting such waiver and shall not
extend to any other matter or occurrence.

 

8.11          This
Subscription Agreement may be executed in several counterparts, each of which
when so executed shall be deemed to be an original, and all of which when taken
together shall institute one and the same Subscription Agreement.

 

8.12          The
Subscriber acknowledges and agrees that all costs incurred by the Subscriber
(including any fees and disbursements or any special counsel retained by the
Subscriber) relating to this subscription and purchase of the Notes
contemplated hereunder to the Subscriber shall be borne by the Subscriber.

 

8.13          The
Subscriber represents and warrants that the funds representing the Investment,
which will be advanced by the Subscriber to the Corporation hereunder, will not
represent proceeds of crime for the purposes of the Proceeds of Crime (Money
Laundering) and Terrorist Financing Act (Canada) (the “PCMLA”) and the
Subscriber acknowledges that the Corporation or the Agent may in the future be
required by law to disclose the Subscriber’s name and other information
relating to this Subscription Agreement and the Subscriber’s subscription
hereunder, on a confidential basis, pursuant to the PCMLA.  To the best of the Subscriber’s knowledge; (a) none
of the subscription funds to be provided by the Subscriber (i) have been
or will be derived from or related to any activity that is deemed criminal
under the law of Canada, the United States of America, or any other
jurisdiction, or (ii) are being tendered on behalf of a person or entity
who has not been identified to the Subscriber; and (b) the Subscriber
shall promptly notify the Corporation and the Agent if the Subscriber discovers
that any of such representations ceases to be true, and to provide the
Corporation and the Agent with appropriate information in connection therewith.

 

13

 

This
Schedule must be completed and executed by all Subscribers.

 

SCHEDULE
“A”

 

U.S.
ACCREDITED INVESTOR STATUS CERTIFICATE

 

Capitalized
terms not otherwise defined herein shall have the meanings attributed thereto
in the Subscription Agreement to which this certificate was attached.

 

The
undersigned Subscriber hereby represents and warrants to the Corporation, as an
integral part of the attached Subscription Agreement, that he, she or it is
correctly and in all respects described by the category or categories set forth
directly next to which the Subscriber has marked below.

 

[MARK BELOW THE CATEGORY OR CATEGORIES WHICH
DESCRIBES YOU]

 

1.                          The Subscriber (or if the Subscriber
is acting on behalf of a principal, then the principal for whom the Subscriber
is acting) satisfies one or more of the Categories indicated below (please
place an “X” on the appropriate category):

 

	
  (a)

  	
   

  	
  o

  	
   

  	
  a bank as
  defined in Section 3(a)(2) of the U.S. Securities Act whether
  acting in its individual or fiduciary capacity; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  o

  	
   

  	
  a savings and loan association or other institution as defined in
  Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its
  individual or fiduciary capacity; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  o

  	
   

  	
  a broker or dealer registered pursuant to Section 15 of the U.S.
  Exchange Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  o

  	
   

  	
  an insurance company as defined in Section 2(13) of the U.S.
  Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  o

  	
   

  	
  an investment company registered under the U.S. Investment Company
  Act of 1940; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  o

  	
   

  	
  a business development company as defined in Section 2(a)(48) of
  the U.S. Investment Company Act of 1940; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  o

  	
   

  	
  a Small Business Investment Company licensed by the U.S. Small
  Business Administration under Section 301(c) or (d) of the
  U.S. Small Business Investment Act of 1958; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  o

  	
   

  	
  an employee benefit plan within the meaning of the U.S. 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 US$5,000,000, or, if a self-directed plan, with investment
  decisions made solely by persons that are “accredited investors” as defined
  in Rule 501(a) under the U.S. Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  o

  	
   

  	
  a private business development company as defined in
  Section 202(a)(22) of the U.S. Investment Advisers Act of 1940; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j)

  	
   

  	
  o

  	
   

  	
  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, not formed for the specific purpose of acquiring the
  Notes, with total assets in excess of US$5,000,000; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (k)

  	
   

  	
  o

  	
   

  	
  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 US$5,000,000; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (l)

  	
   

  	
  o

  	
   

  	
  a director, executive officer or general partner of the issuer of the
  securities being offered or sold, or any director, executive officer or
  general partner of a general partner of that issuer; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (m)

  	
   

  	
  o

  	
   

  	
  a natural person whose individual net worth, or joint net worth with
  that person’s spouse, at the time of his purchase exceeds US$1,000,000; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (n)

  	
   

  	
  o

  	
   

  	
  a natural person who had an individual income in excess of US$200,000
  in each of the two most recent years or joint income with that person’s
  spouse in excess of US$300,000 in each of those years and has a reasonable
  expectation of reaching the same income level in the current year; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (o)

  	
   

  	
  o

  	
   

  	
  a trust, with total assets in excess of US$5,000,000, not formed for
  the specific purpose of acquiring the Notes, whose purchase is directed by a
  sophisticated person as described in Rule 506(b)(2)(ii) under the
  U.S. Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (p)

  	
   

  	
  o

  	
   

  	
  an entity in which all of the equity owners meet one or more of the
  categories set forth above.

  

 

2.                        The undersigned, if a purchaser
representative, is making the above statement based on personal knowledge of
the Subscriber’s financial situation and has reviewed personal financial
documentation with an accountant, financial advisor or other financial
professional, if necessary, to determine that the above statement is true;

 

3.                        The Subscriber understands that the
Corporation is relying on this certificate as evidence of the Subscriber’s
status as an “accredited investor” as defined in Rule 501(a) of
Regulation D and further understands that the Corporation may, in its sole
discretion, require the Subscriber to execute a new and separate certificate
each time the Subscriber subscribes for additional Notes.

 

	
  DATED                               ,
  2008

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of
  Subscriber  (please print)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
      Authorized Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Official
  Capacity or Title, if any  (please
  print)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Authorized Signing
  Authority

  	
   

  	
   

  

 

2

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