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EXHIBIT 4.62 SUBSCRIPTION AGREEMENT

LLC Subscription Agreement

EXHIBIT 4.62   SUBSCRIPTION AGREEMENT | Document Parties: AMADOR GOLD CORP You are currently viewing:
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AMADOR GOLD CORP

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Title: EXHIBIT 4.62 SUBSCRIPTION AGREEMENT
Date: 4/20/2005

EXHIBIT 4.62   SUBSCRIPTION AGREEMENT, Parties: amador gold corp
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                                                                    EXHIBIT 4.62

 

 

                             SUBSCRIPTION AGREEMENT

 

 

To:       Amador Gold Corp. (the "Issuer") of 16493 - 26th Avenue,   Surrey,   B.C.

         V3S 9W9

 

 

The   undersigned   (the   "Subscriber")   hereby   acknowledges   that the   Issuer is

proceeding   with a private   placement of units of the Issuer (the   "Units") at a

price of $0.40   per Unit,   each Unit   being   comprised   of two (2)   flow-through

common   shares and one (1)   non-flow-through   common share in the capital of the

Issuer (a "Share")   and three (3) common share   purchase   warrants of the Issuer

(the "Warrants"),   and tenders to the Issuer this subscription offer which, upon

acceptance   by the Issuer,   will   constitute   an agreement of the   Subscriber to

subscribe for, take up, purchase and pay for and, on the part of the Issuer,   to

issue   and sell to the   Subscriber   the   number   of   Units   set out   below   (the

"Purchased   Securities")   on the terms and subject to the   conditions set out in

this Agreement.

 

 

--------------------------------------------------------------------------------

     Number of Units:                                           ___

 

     Total Purchase Price at $0.40 per Unit:                    ___

--------------------------------------------------------------------------------

 

 

PLEASE MAKE CHEQUES AND BANK DRAFTS PAYABLE TO "AMADOR GOLD CORP."

 

 

DATED at __________________, this ________ day of __________________, 2004.

 

 

(Name of Subscriber - please print)                    (Subscriber's Address)

 

by: ____________________________________________       __________________________

(Official Capacity or Title - please print)

                                                                                

________________________________________________       __________________________

                                                      (Telephone Number)

 

________________________________________________       __________________________

(Please print name of individual whose signature       (E-mail Address)

appears above if different than the name of the

Subscriber printed above).                             __________________________

                                                      SOCIAL INSURANCE NUMBER   

                                                     

 

 

<PAGE>

 

 

DETAILS OF BENEFICIAL PURCHASER IF NOT SAME AS SUBSCRIBER:

 

 

_______________________________________          ________________________________

(Name - please print)                             (Beneficial Purchaser's Address)

 

_______________________________________          ________________________________

 

_______________________________________          ________________________________

(if   space is inadequate please attach a

schedule    containing    the     necessary

information)

 

REGISTRATION INSTRUCTIONS:                       DELIVERY INSTRUCTIONS:

 

_______________________________________          Instructions:

Name

 

_______________________________________          ________________________________

Account reference, if applicable                 Account reference, if applicable

 

_______________________________________          ________________________________

Address                                          Contact Name

 

_______________________________________          ________________________________

                                                Address

 

                                                ________________________________

                                                Telephone Number

 

                                                ________________________________

                                                Facsimile Number

 

PRESENT OWNERSHIP OF SECURITIES

 

The Subscriber either [CHECK APPROPRIATE BOX]:

 

[_]       owns directly or indirectly, or exercises control or direction over, no

         common   shares in the capital of the Issuer or   securities   convertible

         into common shares in the capital of the Issuer; or _________

 

[_]       owns directly or indirectly,   or exercises   control or direction   over,

         __________   common shares in the capital of the Issuer and   convertible

         securities entitling the Subscriber to acquire an additional __________

         common shares in the capital of the Issuer.

 

INSIDER STATUS

 

The Subscriber either [CHECK APPROPRIATE BOX]:

 

[_]       is an "Insider" of the Issuer as defined in the SECURITIES ACT (British

         Columbia); or

 

[_]       is not an Insider of the Issuer.

 

 

                                       2

<PAGE>

 

 

MEMBER OF "PRO GROUP"

 

The Subscriber either [CHECK APPROPRIATE BOX]:

 

[_]       is a Member   of the "Pro   Group"   as   defined   in the   Rules of the TSX

         Venture Exchange; or

 

[_]       is not a member of the Pro Group.

 

 

This   subscription   is accepted by Amador Gold Corp. on the 29th day of October,

2004.

 

AMADOR GOLD CORP.

 

By:   /s/ Rupert L. Bullock

----------------------------

Rupert L. Bullock, President

 

 

1.        INTERPRETATION

 

1.1.      In this Agreement, unless the context otherwise requires:

 

         (a)       "1933 Act" means the United States   SECURITIES ACT of 1933, as

                  amended;

 

         (b)       "Acts"   means the Alberta   Act,   the B.C.   Act and the Ontario

                  Act, collectively;

 

         (c)       "Alberta   Act"   means   the   SECURITIES    ACT   (Alberta),    the

                  regulations   and rules made   thereunder   and all   instruments,

                  policy   statements,   blanket orders,   notices,   directions and

                  rulings issued by the Alberta   Securities   Commission,   all as

                  amended;

 

         (h)       "B.C.   Act" means the SECURITIES ACT (British   Columbia),   the

                  regulations   and rules made   thereunder   and all   instruments,

                   policy   statements,   blanket orders,   notices,   directions and

                  rulings issued by the British Columbia Securities   Commission,

                  all as amended;

 

         (i)       "BI 72-503" means BC Instrument 72-503 of the British Columbia

                  Securities   Commission   entitled   "Distribution   of Securities

                  Outside of British Columbia";

 

         (j)       "CEE"   means   Canadian   Exploration   Expenses,   as   defined in

                  subsection 66.1(6) of the ITA;

 

         (k)       "Closing" means the day the Purchased Securities are issued to

                  the Subscriber;

 

         (l)       "Commissions"   means the Alberta   Securities   Commission,   the

                  British   Columbia    Securities    Commission   and   the   Ontario

                  Securities Commission;

 

         (m)       "Directed   Selling   Efforts" has the meaning ascribed to it in

                  Regulation S;

 

         (n)       "Eligible Investor" means:

 

                  (i)       a person or Corporation whose:

 

                           (A)       net assets,   alone or with a spouse,   exceed

                                    $400,000;

 

                           (B)       net income before taxes exceeded   $75,000 in

                                     each of the two most   recent   years   and who

                                    reasonably   expects   to exceed   that   income

                                    level in the current year; or

 

                           (C)       net income   before taxes   combined with that

                                    of a spouse exceeded $125,000 in each of the

                                    two most   recent   years   and who   reasonably

                                    expects to exceed that   income   level in the

                                    current year;

 

 

                                       3

<PAGE>

 

 

                  (ii)      a person or   Corporation   of which a majority   of the

                           voting securities are beneficially   owned by eligible

                           investors or a majority of the directors are eligible

                           investors;

 

                  (iii)     a general   partnership   in which all of the   partners

                            are eligible investors;

 

                  (iv)      a limited   partnership   in which the   majority of the

                           general partners are eligible investors;

 

                  (v)       a trust or estate   in which all of the   beneficiaries

                           or a majority of the trustees are eligible investors;

 

                  (vi)      an   accredited   investor   as defined in   Multilateral

                           Instrument 45-103; or

 

                  (vii)     a person   or   Corporation   that has   obtained   advice

                           regarding the   suitability   of the   investment and if

                           the person or   Corporation   is in a   jurisdiction   of

                           Canada   that   advice   has   been    obtained    from   an

                           investment    dealer,    securities    dealer   or   their

                           equivalent,     registered     under    the    securities

                           legislation of the jurisdiction;

 

         (o)       "Exchange" means the TSX Venture Exchange;

 

         (p)       "Exemptions"    means   the    exemptions    from   the   prospectus

                  requirements   of the   Acts   which   are   outlined   in Part 4 of

                  Multilateral   Instrument   45-103, BI 72-503 and Section 2.3 of

                  Rule 45-501;

 

         (q)       "Exploration   Expenditures"   means   expenditures which qualify

                  for CEE;

 

         (r)       "Exploration   Fund" means the   exploration   fund   created from

                  100% of the   proceeds   from the sale of the FT   Shares,   to be

                  expended on the Exploration   Program which will qualify as CEE

                  under the ITA;

 

         (s)       "Exploration   Program" means the exploration program which the

                  Issuer intends to undertake with respect to its properties;

 

         (t)       "Flow-Through    Subscription   Funds"   means   the   subscription

                  proceeds paid by the   Subscriber   for FT Shares as provided in

                  subsection 2.3;

 

         (u)       "Foreign Issuer" has that meaning ascribed to it in Regulation

                  S;

 

         (v)       "FT Shares" means the previously unissued common shares in the

                   capital of the Issuer   offered by the Issuer   pursuant   to the

                  Private Placement comprising part of the Units;

 

         (w)       "ITA"   means   Income   Tax Act   (Canada)   and   the   regulations

                  thereunder, both as amended;

 

         (x)       "Multilateral Instrument 45-102" means Multilateral Instrument

                  45-102   "Resale   of   Securities"   published   by   the   Canadian

                  Securities Administrators;

 

         (y)       "Multilateral Instrument 45-103" means Multilateral Instrument

                  45-103 "Capital Raising Exemptions" adopted by the Alberta and

                  British Columbia Securities Commissions;

 

         (z)       "NFT Shares" means the   previously   unissued   common shares in

                  the   capital of the Issuer   offered by the Issuer   pursuant to

                  the Private Placement comprising part of the Units;

 

         (aa)      "Offering   Memorandum"   means the   offering   memorandum   dated

                   OCTOBER 8,   2004,   including   all   documents   incorporated   by

                  reference   therein and any amendments or supplements   thereto,

                  which has been by the Issuer in   connection   with the   Private

                  Placement;

 

 

                                       4

<PAGE>

 

 

         (bb)      "Ontario   Act"   means   the   SECURITIES    ACT   (Ontario),    the

                  regulations   and rules made   thereunder   and all   instruments,

                  policy   statements,   blanket orders,   notices,   directions and

                  rulings issued by the Ontario   Securities   Commission,   all as

                  amended;

 

         (cc)      "Parties" or "Party" means the Subscriber, the Issuer or both,

                  as the context requires;

 

         (dd)      "Private   Placement"   means the   offering   of the Units on the

                  terms and conditions contained in this Agreement;

 

         (ee)      "Purchased   Securities" means those Units which the Subscriber

                   has agreed to purchase under this Agreement;

 

         (ff)      "Regulation "S" means Regulation S promulgated   under the 1933

                  Act;

 

         (gg)      "Regulatory    Authorities"    means   the   Commissions   and   the

                   Exchange;

 

         (hh)      "Rule 45-501" means Ontario Securities Commission Rule 45-501;

 

         (ii)      "Securities"   means the Units, the FT Shares,   the NFT Shares,

                  the   Warrants   and   the   Warrant   Shares   forming   part   of or

                  issuable on exercise of the Purchased Securities;

 

         (jj)      "Subscription Agreement" means this agreement made between the

                  Subscriber and the Issuer;

 

         (kk)      "Substantial   U.S. Market   Interest" has that meaning ascribed

                  to it in Regulation S;

 

         (ll)      "United States" has that meaning   ascribed to it in Regulation

                  S;

 

         (mm)      "Units"   means the units of the   Issuer   offered by the Issuer

                   pursuant to the Private   Placement,   each   comprised of two FT

                  Shares, one NFT Share and three Warrants;

 

         (nn)      "U.S.   Person" has that meaning ascribed to it in Regulation S

                  (which includes, but is not limited to, an individual resident

                  in the   United   States   and an   estate   or trust of which   any

                  executor or administrator or trustee,   respectively, is a U.S.

                  Person   and   any   partnership   or   corporation    organized   or

                  incorporated under the laws of the United States);

 

         (oo)      "Warrants"   means share purchase   warrants of the Issuer which

                  will be issued as part of the Units; and

 

         (pp)       "Warrant    Shares"    means    the    previously    unissued    non

                  flow-through   common shares in the capital of the Issuer which

                  will be issued upon the exercise of the Warrants.

 

1.2       Time is of the   essence of this   Agreement   and will be   calculated   in

accordance with the provisions of the INTERPRETATION ACT (British Columbia).

 

1.3       This   Agreement   is to be read with all   changes in gender or number as

required by the context.

 

1.4       The headings in this   Agreement are for   convenience   of reference only

and do not affect the interpretation of this Agreement.

 

1.5       All references to currency refer to Canadian dollars.

 

1.6       This Agreement is governed by, subject to and interpreted in accordance

with the laws   prevailing in the Province of British   Columbia and the courts of

the Province of British Columbia will have the exclusive   jurisdiction   over any

dispute arising in connection with this Agreement.

 

 

                                       5

<PAGE>

 

 

2.        THE UNITS

 

2.1       Each Unit will be comprised   of two FT Shares,   one NFT Share and three

Warrants.

 

2.2       The FT   Shares,   the NFT Share   and the   Warrants   will be   issued   and

registered in the name of the Subscriber or its nominee.

 

2.3       The aggregate subscription price for the Units will be allocated to the

FT Shares,   as to $0.1399 per share,   to the NFT Share, as to $0.1199 and to the

Warrants as to $0.0001 per Warrant.

 

3.        THE WARRANTS

 

3.1       Each whole   Warrant will entitle the holder,   on exercise,   to purchase

one   Warrant   Share at a price of $0.14   for a two   year   period   following   the

Closing.

 

3.2       The   certificates   representing   the Warrants will, among other things,

include provisions for the appropriate adjustment in the class, number and price

of the Warrant   Shares issued on exercise of the Warrants upon the occurrence of

certain events, including any subdivision,   consolidation or reclassification of

the Issuer's common shares,   the payment of stock dividends and the amalgamation

of the Issuer.

 

3.3       The issue of the Warrants   will not restrict or prevent the Issuer from

obtaining any other financing,   or from issuing additional securities or rights,

during the period within which the Warrants may be exercised.

 

4.        REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

 

4.1       The Subscriber acknowledges,   represents, warrants and covenants to and

with the Issuer that, as at the date given above and at the Closing:

 

         (a)       no   prospectus   has been filed by the   Issuer   with any of the

                  Commissions in connection with the issuance of the Securities,

                  such issuance is exempted from the prospectus   requirements of

                  the Acts and that:

 

                   (i)       the   Subscriber is restricted   from using most of the

                           civil remedies available under the Acts;

 

                  (ii)      the Subscriber may not receive information that would

                           otherwise be required to be provided to him under the

                           Acts; and

 

                  (iii)     the Issuer is relieved from certain   obligations that

                           would otherwise apply under the Acts;

 

         (b)       the   Subscriber   certifies   that   it is   resident   in   British

                  Columbia, Alberta or Ontario or resident outside of Canada and

                  the United States;

 

         (c)       the Subscriber:

 

                  (i)       is purchasing   the Purchased   Securities as principal

                           for its own   account   and not for the   benefit of any

                           other   person   or is   deemed   under   the   Acts   to be

                           purchasing the Purchased Securities as principal, and

                           in either case is purchasing the Purchased Securities

                           for investment only and not with a view to the resale

                           or   distribution   of all   or   any   of   the   Purchased

                           Securities; or

 

                  (ii)      is purchasing as agent for a disclosed   principal and

                           is not   deemed   under the Acts to be   purchasing   the

                           Purchased   Securities   as   principal,   and it is duly

                           authorized   to   enter   into   this   Agreement   and   to

                           execute and deliver all   documentation   in connection

                           with   the   purchase   on   behalf   of   such    disclosed

                           principal, who is purchasing as principal for its own

 

 

                                       6

<PAGE>

 

 

                           account and not for the   benefit of any other   person

                            and for   investment   only   and not with a view to the

                           resale or distribution of all or any of the Purchased

                           Securities;

 

         (d)       the Subscriber has received a copy of the Offering   Memorandum

                  and has duly completed, signed and delivered to the Issuer two

                  Form 45-103.F3 Risk   Acknowledgements   in the form attached as

                  Appendix II hereto;

 

         (e)       the   Subscriber,   if   not   a   resident   of   British   Columbia,

                  certifies   that it is not   resident   in British   Columbia   and

                  acknowledges that:

 

                  (i)       no   securities    commission   or   similar    regulatory

                            authority has reviewed or passed on the merits of the

                           Securities;

 

                  (ii)      there is no   government or other   insurance   covering

                           the Securities;

 

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

                           Securities;

 

                  (iv)      there are restrictions on the Subscriber's ability to

                           resell the Securities and it is the responsibility of

                           the   Subscriber   to find out what those   restrictions

                           are   and to   comply   with   them   before   selling   the

                           Securities; and

 

                  (v)       the Issuer has advised the Subscriber that the Issuer

                           is relying on an exemption from the   requirements   to

                           provide the Subscriber   with a prospectus and to sell

                           the   Securities   through a person   registered to sell

                           securities   under the Acts and, as a   consequence   of

                           acquiring the Securities   pursuant to this exemption,

                           certain protections,   rights and remedies provided by

                           the Act, including   statutory rights of rescission or

                           damages, will not be available to the Subscriber;

 

         (f)       if the Subscriber is a resident of Alberta,   the Subscriber is

                   either:

 

                  (i)       an Eligible   Investor under   Multilateral   Instrument

                           45-103 and the   Subscriber   has completed an Eligible

                           Investor   Status   Certificate   in the form set out in

                           Appendix IV and an Accredited Investor Certificate in

                           the form set out in Appendix V (if applicable); or

 

                  (ii)      purchasing   Purchased   Securities having an aggregate

                            acquisition cost which does not exceed $10,000;

 

         (g)       if the   Subscriber   is a resident   of Ontario or is   otherwise

                  subject to the Ontario Act, the   Subscriber is an   "accredited

                  investor"   as   defined in Rule   45-501,   by virtue of the fact

                  that   the    Subscriber    falls   within   one   or   more   of   the

                  sub-paragraphs of the definition of "accredited   investor" set

                  out in Appendix III hereto (the Subscriber   having   initialled

                  the applicable sub-paragraph(s);

 

         (h)       if the Subscriber is resident outside of Canada and the United

                  States, the Subscriber:

 

                  (i)       is   knowledgeable   of,   or   has   been    independently

                           advised as to the applicable   securities   laws of the

                           securities regulatory authorities (the "Authorities")

                           having   application in the   jurisdiction in which the

                           Subscriber     is    resident     (the     "International

                           Jurisdiction")   which would apply to the   acquisition

                           of the Securities, if any;

 

                   (ii)      is purchasing   the Purchased   Securities   pursuant to

                           exemptions   from   the   prospectus   and    registration

                           requirements under the applicable   securities laws of

                            the Authorities in the International Jurisdiction or,

                           if   such   is   not    applicable,    the   Subscriber   is

                           permitted to purchase the Purchased   Securities under

                           the applicable   securities laws of the Authorities in

                           the   International   Jurisdiction   without the need to

                           rely on any exemption; and

 

 

                                       7

<PAGE>

 

 

                  (iii)     the applicable   securities laws of the Authorities in

                           the   International   Jurisdiction   do not   require the

                           Issuer to make any filings or seek any   approvals   of

                           any nature   whatsoever from any Authority of any kind

                           whatsoever   in   the   International    Jurisdiction   in

                           connection   with the   issue and sale or resale of the

                           Purchased Securities;

 

         (i)       to the best of the Subscriber's knowledge,   the Units were not

                  advertised;

 

         (j)       no   person   has made to the   Subscriber   any   written   or oral

                  representations:

 

                  (i)        that any person will resell or repurchase   any of the

                           Securities;

 

                  (ii)      that any person will refund the purchase price of any

                           of the Securities;

 

                  (iii)     as to   the   future   price   or   value   of   any   of the

                           Securities; or

 

                  (iv)      that any of the Securities   will be listed and posted

                           for trading on a stock   exchange or that   application

                            has   been   made   to   list   and   post   the   any of the

                           Securities   for   trading on a stock   exchange,   other

                           than the listing of the FT Shares,   the NFT Share and

                            the Warrant Shares on the Exchange;

 

         (k)       the   Subscriber   is not a   "control   person"   of the Issuer as

                  defined in the Acts,   will not   become a   "control   person" by

                  virtue of the purchase of the Purchased   Securities,   and does

                  not intend to act in concert   with any other   person to form a

                  control group of the Issuer;

 

         (l)       this   subscription   has not been solicited in any other manner

                   contrary to the Acts or the 1933 Act;

 

         (m)       the Subscriber   acknowledges that the Securities have not been

                  registered   under the 1933 Act or the   securities   laws of any

                  state of the United States,   and such   securities must be held

                  indefinitely and may not be offered or sold unless   registered

                  under the 1933 Act and the   securities   laws of all applicable

                  states   of   the   United   States   or   an   exemption   from   such

                  registration   requirements   is available,   and that the Issuer

                  has   no    obligation    or   present    intention    of   filing   a

                  registration   statement   under the 1933 Act in   respect of the

                  any of the Securities;

 

         (n)       the Purchased   Securities are not being   acquired   directly or

                  indirectly,   for the account or benefit of a U.S.   Person or a

                  person in the United States and the   Subscriber   does not have

                  any agreement or   understanding   (either written or oral) with

                  any U.S. Person of a person in the United States respecting:

 

                  (i)       the transfer or   assignment of any rights or interest

                           in any of the Securities;

 

                  (ii)      the division of profits,   losses, fees,   commissions,

                           or   any   financial   stake   in   connection   with   this

                            subscription; or

 

                  (iii)     the   voting   of the FT   Shares,   the NFT Share or the

                           Warrant Shares;

 

         (o)       the current structure of this transaction and all transactions

                  and activities contemplated hereunder is not a scheme to avoid

                  the registration requirements of the 1933 Act;

 

         (p)       it   has   no   intention   to   distribute    either    directly   or

                  indirectly   any of the   Securities   in the United States or to

                  U.S. Persons;

 

         (q)       the   Subscriber   acknowledges   and   agrees   that the   offer to

                  purchase   the   Purchased    Securities   was   not   made   to   the

                  Subscriber   when the   Subscriber   was in the United States and

                  that:

 

                  (i)       the Subscriber is not a U.S. Person;

 

 

                                       8

<PAGE>

 

 

                  (ii)      the   Subscriber is not and will not be purchasing the

                           Purchased   Securities   for the   account or benefit of

                           any U.S. Person;

 

                  (iii)     the   Subscriber   will   not   engage   in   any   Directed

                           Selling Efforts in respect of the Securities;

 

                  (iv)      the   Subscriber   agrees   not   to   engage   in   hedging

                           transactions   with regard to the Securities except in

                           compliance with the 1933 Act; and

 

                  (v)       the Issuer   shall   refuse to register any transfer of

                           the   Securities   not   made   in   accordance   with   the

                           provisions of Regulation S, pursuant to   registration

                            under   the 1933   Act,   or   pursuant   to an   available

                           exemption from registration under the 1933 Act;

 

         (r)       the   Subscriber   has no   knowledge   of a   "material   fact"   or

                  "material   change" (as those terms are defined in the Acts) in

                  the   affairs   of   the   Issuer   that   has   not   been   generally

                  disclosed to the public,   save   knowledge   of this   particular

                  transaction;

 

          (s)       the   Subscriber's   decision to tender this offer and   purchase

                  the Purchased   Securities has not been made as a result of any

                  verbal or written   representation as to fact or otherwise made

                   by or on behalf of the   Issuer,   or any   other   person   and is

                  based entirely upon   currently   available   public   information

                  concerning   the Issuer and the   information   contained in this

                  Agreement and the Offering Memorandum;

 

         (t)       the   offer   made   by   this   subscription   is   irrevocable   and

                  requires    acceptance   by   the   Issuer   and   approval   of   the

                  Exchange;

 

         (u)       the   Issuer   will have the right to accept   this   subscription

                  offer   in   whole   or   in   part   and   the   acceptance   of   this

                  subscription   offer will be   conditional   upon the sale of the

                  Purchased   Securities to the Subscriber   being exempt from the

                  prospectus     requirements    of    the    relevant     securities

                  legislation;

 

         (v)       the   Subscriber has the legal capacity and competence to enter

                  into   and   execute   this   Agreement   and to take   all   actions

                  required   pursuant hereto and, if an individual is of full age

                  of majority, and if the Subscriber is a corporation it is duly

                  incorporated   and   validly   subsisting   under   the laws of its

                  jurisdiction of incorporation,   and all necessary approvals by

                  its   directors,   shareholders   and   others   have been given to

                  authorize   the   execution   of this   Agreement on behalf of the

                  Subscriber;

 

         (w)       the   entering   into of   this   Agreement   and the   transactions

                  contemplated hereby will not result in the violation of any of

                  the   terms and   provisions   of any law   applicable   to, or the

                  constating   documents of, the   Subscriber or of any agreement,

                  written or oral, to which the   Subscriber   may be a part or by

                  which he is or may be bound;

 

          (x)       this   Agreement   has been duly   executed and   delivered by the

                  Subscriber   and    constitutes   a   legal,    valid   and   binding

                  obligation    of   the    Subscriber    enforceable    against   the

                   Subscriber;

 

         (y)       the   Subscriber   has   been   independently   advised   as to   the

                  applicable   hold periods   imposed in respect of the Securities

                  by applicable   securities   legislation and regulatory policies

                  and confirms that no   representations   by the Issuer have been

                  made respecting the hold periods   applicable to the Securities

                  and is aware of the   risks and   other   characteristics   of the

                   Securities and of the fact that the Subscriber may not be able

                  to resell the Securities   purchased by it except in accordance

                  with the   applicable   securities   legislation   and   regulatory

                  policies   and that the   Securities   may be   subject   to resale

                  restrictions and may bear a legend to this effect;

 

         (z)       the   Subscriber,   and any   beneficial   purchaser   for whom the

                  Subscriber    is   acting,    is   resident   in   the   province   or

                  jurisdiction set out on the cover page of this Agreement;

 

         (aa)      if required by applicable   securities   legislation,   policy or

                  order or by any securities commission, stock exchange or other

                  regulatory   authority,   the Subscriber will execute,   deliver,

                  file and  

 

 

                                       9

<PAGE>

 

 

                  otherwise    assist    the   Issuer   in   filing    such    reports,

                  undertakings   and other documents with respect to the issue of

                  the Securities as may be required;

 

         (bb)      the Subscriber has not purchased the Purchased Securities as a

                  result   of   any   form   of   general    solicitation   or   general

                  advertising,   including advertisements,   articles,   notices or

                  other   communication   published in any newspaper,   magazine or

                  similar media or broadcast over radio,   television or internet

                  or any seminar or meeting whose attendees have been invited by

                  general solicitation or general advertising;

 

         (cc)      the   Subscriber   has been   advised   to   consult   its own legal

                  advisors with respect to resale restrictions applicable to the

                  Securities and the Subscriber is solely   responsible   (and the

                  Issuer is not   responsible)   for   compliance   with   applicable

                   resale restrictions;

 

         (dd)      this    Subscription    Agreement   has   been   duly   and   validly

                  authorized, executed and delivered by and constitutes a legal,

                  valid, binding and enforceable obligation of the Subscriber;

 

         (ee)      the   Subscriber,   or, where it is not purchasing as principal,

                  each beneficial purchaser, 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;

 

         (ff)      the Subscriber,   if a corporation,   has previously   filed with

                  the Exchange a Form 4C,   Corporate Placee   Registration   Form,

                  and   represents   and warrants that there has been no change to

                  any of the   information in the Corporate   Placee   Registration

                  Form previously filed with the Exchange up to the date of this

                  Agreement,   or will   deliver a   completed   Form 4C,   Corporate

                  Placee   Registration   Form   in the   form   attached   hereto   as

                  Appendix   I to the   Issuer for   filing   with the   Exchange   in

                  accordance with Section 6.2 hereof; and

 

         (gg)      the    Subscriber    agrees   that   the   above    representations,

                  warranties and covenants in this   subsection   will be true and

                  correct both as of the execution of this   subscription   and as

                  of the day of Closing.

 

4.2       The foregoing   representations,   warranties   and covenants will survive

the Closing and are made by the   Subscriber   with the intent that they be relied

upon by the Issuer in determining its   suitability as a purchaser of Units,   and

the Subscriber hereby agrees to indemnify the Issuer against all losses, claims,

costs, expenses and damages or liabilities which any of them may suffer or incur

as a result of reliance thereon. The Subscriber   undertakes to notify the Issuer

immediately of any change in any   representation,   warranty or other information

relating   to the   Subscriber   set forth   herein   which   takes place prior to the

Closing.

 

5.        REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE ISSUER

 

5.1       The Issuer   represents,   warrants and   covenants   that,   as of the date

given above and at the Closing:

 

         (a)       the   Issuer   is a valid   and   subsisting   corporation   in good

                   standing under the laws of


 
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