Document:

Exhibit
        No. 10.29

      

      PROMISSORY
        NOTE CONVERSION AGREEMENT

      

      This
        Promissory Note Conversion Agreement (the “Agreement”), dated as of January 29,
        2007, is entered into by and between Shearson Financial, Inc., a Nevada
        corporation (“Shearson”) and La Jolla Cove Investors, Inc., a California
        corporation (“LJCI”), with reference to the following:

      

      WHEREAS,
        LJCI has purchased, and/or will be purchasing, certain Promissory Notes
        (“Promissory Notes”) issued by Shearson to various individuals and/or entities,
        as set forth in more detail on Exhibit A attached hereto; and 

      

      WHEREAS,
        the parties desire to provide for certain conversion provisions relating
        to the
        Promissory Notes. 

      

      NOW,
        THEREFORE, in consideration of the mutual promises and convenants contained
        herein, the receipt and sufficiency of which are hereby acknowledged, the
        parties hereto hereby agree as follows:

      

      1.    Conversion
        Right.  Each
        of
        LJCI and Shearson agree that each Promissory Note shall be converted or
        exchanged (each, a “Conversion”), in whole, up to the full principal balance
        thereof, into shares of the common stock of Shearson (the “Shearson Common
        Stock”) (calculated as to each such conversion to the nearest 1/100th
        of a
        share), within 60 days from the date of LJCI’s purchase of the Promissory Note.
        The number of shares of Shearson Common Stock into which the Promissory Notes
        may be converted is equal to the dollar amount of the Promissory Note being
        converted divided by the Conversion Price. The Conversion Price shall be
        equal
        to 82% of the average of the volume weighted average price of the shares
        of the
        Shearson Common Stock during the five trading days prior to LJCI’s election to
        convert.

       

      
        	 	
                2.

              	
                Exercise
                  of Conversion Privilege.

              

      

       

      (a)    Conversion
        of a Promissory Note may be exercised, within the allotted time, by LJCI
        by
        telecopying an executed and completed Conversion Notice to Shearson. Each
        date
        on which a Conversion Notice is telecopied to Shearson in accordance with
        the
        provisions of this Section shall constitute a Conversion Date. Shearson shall
        convert or exchange the Promissory Note and issue the Shearson Common Stock
        in
        the manner provided below in this Section, and all voting and other rights
        associated with the beneficial ownership of the Shearson Common Stock issued
        at
        Conversion shall vest with LJCI, effective as of the Conversion Date at the
        time
        specified in the Conversion Notice. The Conversion Notice also shall state
        the
        name or names (with addresses) of the persons who are to become the holders
        of
        the Shearson Common Stock issued at Conversion in connection with such
        Conversion. As promptly as practicable after the receipt of the Conversion
        Notice as aforesaid, but in any event not more than two business days after
        Shearson’s receipt of such Conversion Notice, Shearson shall (i) issue the
        Shearson Common Stock in accordance with the provisions of this Section and
        (ii)
        cause to be mailed for delivery by overnight courier to LJCI a certificate
        or
        certificate(s) representing the number of Shearson Common Shares to which
        LJCI
        is entitled by virtue of such Conversion. Such Conversion shall be deemed
        to
        have been effected at the time at which the Conversion Notice indicates,
        and at
        such time the rights of LJCI as the holder of the Promissory Note, as such
        (except if and to the extent that any principal amount thereof remains
        unconverted), shall cease and the person and persons in whose name or names
        the
        Shearson Common Stock issued at conversion shall be issuable shall be deemed
        to
        have become the holder or holders of record of the shares of common stock
        represented thereby, and all voting and other rights associated with the
        beneficial ownership of such shares of common stock shall at such time vest
        with
        such person or persons. The Conversion Notice shall constitute a contract
        between LJCI and Shearson, whereby LJCI shall be deemed to subscribe for
        the
        number of shares of Shearson Common Stock which it will be entitled to receive
        upon such Conversion and, in payment and satisfaction of such subscription,
        to
        surrender the Promissory Note and to release Shearson from all liability
        thereon
        (except if and to the extent that any principal amount of the Promissory
        Note
        remains unconverted). 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      (b)    If,
        at
        any time after the date of this Agreement, (i) Shearson challenges, disputes
        or
        denies the right of LJCI to effect the Conversion of a Promissory Note into
        shares of Shearson Common Stock or otherwise dishonors or rejects any Conversion
        Notice delivered in accordance with this Section or (ii) any third party
        who is
        not and has never been an affiliate of LJCI commences any lawsuit or legal
        proceeding or otherwise asserts any claim before any court or public or
        governmental authority which seeks to challenge, deny, enjoin, limit, modify,
        delay or dispute the right of LJCI hereof to effect any Conversion of the
        Promissory Note into shares of Shearson Common Stock, then LJCI shall have
        the
        right, but not the obligation, by written notice to Shearson, to require
        Shearson to promptly redeem the Promissory Note for cash at one hundred and
        ten
        percent (110%) of the principal amount thereof, together with all accrued
        and
        unpaid interest thereon to the date of redemption. Under any of the
        circumstances set forth above, Shearson shall be responsible for the payment
        of
        all costs and expenses of LJCI, including reasonable legal fees and expenses,
        as
        and when incurred in defending itself in any such action or pursuing its
        rights
        hereunder (in addition to any other rights of LJCI).

       

      (c)    LJCI
        shall be entitled to exercise its conversion privilege set forth herein
        notwithstanding the commencement of any case under the Bankruptcy Code. In
        the
        event Shearson is a debtor under the Bankruptcy Code, Shearson hereby waives
        to
        the fullest extent permitted any rights to relief it may have under 11 U.S.C.
§
362 in respect of LJCI’s conversion privilege. Shearson hereby waives to the
        fullest extent permitted any rights to relief it may have under 11 U.S.C.
§ 362
        in respect of the conversion of the Promissory Notes. Shearson agrees, without
        cost or expense to LJCI, to take or consent to any and all action necessary
        to
        effectuate relief under 11 U.S.C. § 362.

       

      
        (d)    Shearson
          shall provide LJCI, at its expense, any Rule 144(k) legal opinion in accordance
          with customary rules and regulations as enforced by the SEC, and in form
          and
          substance acceptable to LJCI that would be required to enable LJCI to sell
          the
          shares of Shearson Common Stock issued at any Conversion.

      

      

      3.    Adjustments.  The
        Conversion Price and the number of shares deliverable upon conversion of
        the
        Promissory Notes are subject to adjustment from time to time as
        follows:

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (a)    Reclassification,
        Etc.    In
        case
        Shearson shall reorganize its capital, reclassify its capital stock, consolidate
        or merge with or into another company (where Shearson is not the survivor
        or
        where there is a change in or distribution with respect to the common stock
        of
        Shearson), sell, convey, transfer or otherwise dispose of all or substantially
        all its property, assets or business to another person or company, or effectuate
        a transaction or series of related transactions in which more than fifty
        percent
        (50%) of the voting power of Shearson is disposed of (each, a “Fundamental
        Corporate Change”)
        and,
        pursuant to the terms of such Fundamental Corporate Change, shares of common
        stock of the successor or acquiring corporation, or any cash, shares of stock
        or
        other securities or property of any nature whatsoever (including warrants
        or
        other subscription or purchase rights) in addition to or in lieu of common
        stock
        of the successor or acquiring corporation (“Other
        Property”)
        are to
        be received by or distributed to the holders of Shearson Common Stock, then
        LJCI
        shall have the right thereafter, at its sole option, to (x) require Shearson
        to
        prepay the Promissory Notes for cash at one hundred and ten percent (110%)
        of
        the principal amount thereof, together with all accrued and unpaid interest
        thereon to the date of prepayment, (y) receive the number of shares of
        common stock of the successor or acquiring corporation or of Shearson, if
        it is
        the surviving corporation, and Other Property as is receivable upon or as
        a
        result of such
        Fundamental Corporate Change by a holder of the number of shares of common
        stock
        into which the outstanding portion of the Promissory Notes may be converted
        at
        the Conversion Price applicable immediately prior to such Fundamental Corporate
        Change or (z) require Shearson, or such successor, resulting or purchasing
        corporation, as the case may be, to, without benefit of any additional
        consideration therefor, execute and deliver to LJCI a debenture with substantial
        identical rights, privileges, powers, restrictions and other terms as the
        Promissory Notes and the rights of conversion and/or exchange as set forth
        in
        this Agreement in an amount equal to the amount outstanding under the Promissory
        Notes immediately prior to such Fundamental Corporate Change. For purposes
        hereof, “common
        stock of the successor or acquiring corporation”
        shall
        include stock of such corporation of any class which is not preferred as
        to
        dividends or assets over any other class of stock of such corporation and
        which
        is not subject to prepayment and shall also include any evidences of
        indebtedness, shares of stock or other securities which are convertible into
        or
        exchangeable for any such stock, either immediately or upon the arrival of
        a
        specified date or the happening of a specified event and any warrants or
        other
        rights to subscribe for or purchase any such stock. The foregoing provisions
        shall similarly apply to successive Fundamental Corporate Changes. 

       

      4.    Certain
        Conversion Limits.  For
        the
        conversion period, if and to the extent that, on any date, the holding by
        LJCI
        of the Promissory Notes would result in LJCI being deemed the beneficial
        owner of
        more
        than 9.99% of the then outstanding shares of Shearson common stock, then
        LJCI
        shall not have the right, and Shearson shall not have the obligation, to
        convert
        or exchange any portion of the Promissory Notes as shall cause LJCI to be
        deemed
        the beneficial owner of more than 9.99% of the then outstanding shares of
        Shearson Common Stock. If any court of competent jurisdiction shall determine
        that the foregoing limitation is ineffective to prevent LJCI from being deemed
        the beneficial owner of more than 9.99% of the then outstanding shares of
        Shearson Common Stock, then Shearson shall prepay such portion of the Promissory
        Notes as shall cause LJCI not to be deemed the beneficial owner of more than
        9.99% of the then outstanding shares of Shearson Common Stock. Upon such
        determination by a court of competent jurisdiction, LJCI shall have no interest
        in or rights under such portion of the Promissory Notes that is so prepaid.
        Such
        prepayment shall be for cash at a prepayment price of one hundred and ten
        percent (110%) of the principal amount thereof, together with all accrued
        and
        unpaid interest thereon to the date of prepayment.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      5.    Representations
        and Warranties of Shearson.  In
        connection with the transactions provided for herein, Shearson hereby represents
        and warrants to LJCI that:

       

      (a)    Organization,
        Good Standing and Qualification.    Shearson
        is a corporation duly organized, validly existing, and in good standing under
        the laws of the State of Nevada and has all requisite corporate power and
        authority to carry on its business as now conducted. Shearson is duly qualified
        to transact business and is in good standing in each jurisdiction in which
        the
        failure to so qualify would have a material adverse effect on its business
        or
        properties.

       

      (b)    Authorization.    All
        corporate action has been taken on the part of Shearson, its officers, directors
        and stockholders necessary for the authorization, execution and delivery
        of this
        Agreement and the conversion or exchange of the Promissory Notes. Except
        as may
        be limited by applicable bankruptcy, insolvency, reorganization, or similar
        laws
        relating to or affecting the enforcement of creditors’ rights, Shearson has
        taken all corporate action required to make all of the obligations of Shearson
        reflected in the provisions of this Agreement, and the Promissory Notes,
        the
        valid and enforceable obligations they purport to be. [Except
        as
        otherwise indicated in this Section 5, the conversion or exchange of the
        Promissory Notes into shares of Shearson Common Stock as contemplated herein,
        will not be subject to the preemptive rights of any stockholder of the
        Company. Shearson
        has authorized sufficient shares of Shearson Common Stock to allow for
        conversion or exchange of the Promissory Notes as described in Section 1
        and
        Section 2.

      

      (c)    Compliance
        with Other Instruments.    Neither
        the authorization, execution and delivery of this Agreement, nor the issuance
        and delivery of the shares of Shearson Common Stock upon the conversion or
        exchange of the Promissory Notes, will constitute or result in a material
        default or violation of any law or regulation applicable to Shearson or any
        material term or provision of Shearson’s current Articles of Incorporation or
        bylaws or any material agreement or instrument by which it is bound or to
        which
        its properties or assets are subject.

      

      (d)    Issuance
        of Common Stock.    The
        shares of Shearson Common Stock to be issued and delivered upon Conversion
        of
        the Promissory Notes will be duly and validly issued, fully paid and
        nonassessable and will be issued in compliance with all applicable federal
        and
        state securities laws. The offer, sale and issuance of the shares of Shearson
        Common Stock to be issued and delivered upon Conversion of the Promissory
        Notes
        will be exempt from the registration requirements of the Securities Act,
        and
        will have been registered or qualified (or are exempt from registration and
        qualification) under the registration, permit or qualification requirements
        of
        all applicable state securities laws and federal securities laws. 

      

      (e)    Litigation.    There
        is
        no action, suit, proceeding or investigation pending or currently threatened
        against Shearson that questions the validity of the Promissory Notes or this
        Agreement, or the right of Shearson to convert or exchange the Promissory
        Notes,
        or to consummate the transactions contemplated hereby, or that might result,
        either individually or in the aggregate, in any material adverse change in
        the
        assets, business, properties, prospects, or financial condition of Shearson.
        The
        foregoing includes, without limitation, any action, suit, proceeding, or
        investigation pending or currently threatened involving the negotiations
        by
        Shearson with potential backers of, or investors in, Shearson or its proposed
        business. Shearson is not a party to, or to the best of its knowledge, named
        in
        the order, writ, injunction, judgment, or decree of any court, government
        agency, or instrumentality. There is no action, suit, or proceeding by Shearson
        currently pending or that Shearson currently intends to initiate.

      

      6.    Governing
        Law.  This
        Agreement shall in all respects be construed, interpreted and enforced in
        accordance with and governed by the laws of the State of California, United
        States of America.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      7.    Consent
        to Jurisdiction.  The
        parties (i) hereby irrevocably submit to the jurisdiction of the United States
        District Court sitting in the District of San Diego and the courts of the
        State
        of California located in San Diego county for the purposes of any suit, action
        or proceeding arising out of or relating to this Agreement or the transactions
        contemplated hereunder and (ii) hereby waive, and agree not to assert in
        any
        such suit, action or proceeding, any claim that it is not personally subject
        to
        the jurisdiction of such court, that the suit, action or proceeding is brought
        in an inconvenient forum or that the venue of
        the
        suit, action or proceeding is improper. The parties consent to process being
        served in any such suit, action or proceeding by mailing a copy thereof to
        such
        party at the address in effect for notices to it under this Agreement and
        agree
        that such service shall constitute good and sufficient service of process
        and
        notice thereof. Nothing in this section shall affect or limit any right to
        serve
        process in any other manner permitted by law.

       

      8.    Waiver
        of Jury Trial.  To
        the
        fullest extent permitted by law, each of the parties hereto hereby knowingly,
        voluntarily and intentionally waives its respective rights to a jury trial
        of
        any claim or cause of action based upon or arising out of this Agreement
        or any
        other document or any dealings between them relating to the subject matter
        of
        this Agreement and other documents. Each party hereto (i) certifies that
        neither
        of their respective representatives, agents or attorneys has represented,
        expressly or otherwise, that such party would not, in the event of litigation,
        seek to enforce the foregoing waivers and (ii) acknowledges that it has been
        induced to enter into this Agreement by, among other things, the mutual waivers
        and certifications herein.

       

      9.    Attorneys'
        Fees.  In
        the
        event of any legal action between the parties with respect to this Agreement
        or
        the subject matter hereof, the prevailing party shall be entitled to recover
        reasonable attorneys' fees in addition to court costs and litigation expenses
        incurred in said legal action, regardless of whether such legal action is
        prosecuted to judgment.

      

      10.    Notices.  Any
        notice, demand or other communication required or permitted under this Agreement
        shall be deemed given and delivered when in writing and (a) personally served
        upon the receiving party, or (b) upon hand delivery by telex (with correct
        answer back received), telecopy or facsimile at the address or number designated
        below (if delivered on a business day during normal business hours where
        such
        notice is to be received), or (c) upon the third (3rd) calendar day after
        mailing to the receiving party by either United States registered or certified
        mail, postage prepaid, or (d) the next delivery day after mailing to the
        receiving party by FedEx or other comparable overnight delivery service,
        delivery charges prepaid, and addressed as follows:

       

      
        	
                To
                  Shearson:

              	
                Shearson
                  Financial Network, Inc.

              

      

      2470
        St.
        Rose Parkway, Suite 314

      Henderson,
        NV 89074

      Facsimile:
        702-868-7945 

      

      
        	
                To
                  LJCI:

              	
                La
                  Jolla Cove Investors, Inc.

              

      

      7817
        Herschel Avenue, Suite 200

      La
        Jolla,
        CA 92037

      Facsimile:
        (858) 551-8779

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      11.    Severability.  In
        the
        event that any provision of this Agreement becomes or is declared by a court
        of
        competent jurisdiction to be illegal, unenforceable or invalid, then this
        Agreement shall continue in full force and effect without said provision.
        If
        this Agreement continues in full force and effect as provided above, the
        parties
        shall replace the invalid provision with a valid provision which corresponds
        as
        far as possible to the spirit and purpose of the invalid provision.

       

      12.    Counterparts.  This
        Agreement may be executed in any number of counterparts, each of which may
        be
        executed by less than all of the parties hereto, each of which shall be
        enforceable against the parties actually executing such counterparts, and
        all of
        which together shall constitute one document. Facsimile execution shall be
        deemed originals.

      

      13.    Entire
        Agreement.  This
        Agreement constitute the entire agreement between the parties with respect
        to
        the subject matter hereof, and supersede all prior oral or written agreements,
        representations or warranties between the parties other than those set forth
        herein or herein provided for.

      

      14.    Successors
        and Assigns.  The
        provisions hereof shall inure to the benefit of, and be binding upon, the
        permitted successors and assigns, heirs, executors, and administrators of
        the
        parties hereto.

      

      15.    Amendment
        and Waiver.  No
        modification or waiver of any provision of this Agreement shall be binding
        upon
        the party against whom it is sought to be enforced, unless specifically set
        forth in writing signed by an authorized representative of that party. A
        waiver
        by any party of any of the terms or conditions of this Agreement in any one
        instance shall not be deemed or construed to be a waiver of such terms or
        conditions for the future, or of any subsequent breach thereof. The failure
        by
        any party hereto at any time to enforce any of the provisions of this Agreement,
        or to require at any time performance of any of the provisions hereof, shall
        in
        no way to be construed to be a waiver of such provisions or to affect either
        the
        validity of this Agreement or the right of any party to thereafter enforce
        each
        and every provision of this Agreement.

       

      IN
        WITNESS WHEREOF, Shearson and LJCI have duly executed this Agreement as of
        the
        date first above written.

      

      
        	
                Shearson
                  Financial Network, Inc.

              	 	
                La
                  Jolla Cove Investors, Inc.

              	 
	 	 	 	 
	 	 	 	 
	
                By:
                  /s/ Michael A. Barron

              	 	
                By:
                  /s/ Travis W. Huff

              	 
	 	 	 	 
	
                Name:
                  Michael A. Barron

              	 	
                Name:
                  Travis W. Huff

              	 
	
                Title:
                  CEO

              	 	
                Title:
                  Portfolio Manager

              	 

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

       

      Promissory
        Notes

      

      Promissory
        Note between Shearson and Ed Hollander dated as of June 1, 2004 in the principal
        amount of $141,780.03.

    

     

     

    7EX 4.1

    EXHIBIT
      4.1

     

    
      	
              Please
                ensure that you complete all required information in this Agreement
                and
                return a fully executed copy of this agreement as soon as possible
                to:

               

              Shoreline
                Pacific LLC

              655
                Montgomery Street, Suite 1010

              San
                Francisco, CA 94111

              Facsimile:
                (415)- 477-9941

               

              If
                paying by wire transfer, wiring United States funds into as
                follows:

               

              Signature
                Bank as Escrow Agent for Apollo Gold Corporation

              261
                Madison Avenue 

              New
                York, NY 10016 

              ABA
                No. 026013576 for credit to 

              Signature
                Bank, as Escrow Agent for Apollo Gold Corporation 

              Account
                No. 500833641

              Name:
                [INSERT]

              Tax
                ID number: [INSERT]

              Amount:
                [INSERT]

            

       

      APOLLO
        GOLD CORPORATION

      
         

        SUBSCRIPTION
          AGREEMENT

         

        (RAB
          SPECIAL SITUATIONS (MASTER) FUND LIMITED)

        for

        CONVERTIBLE
          DEBENTURES

        and

        DEBENTURE
          WARRANTS

         

        INSTRUCTIONS

        

        All
          Subscribers:

         

        Complete
          and sign page (i) of the Subscription Agreement under the heading "Subscription
          Details".

         

        Read
          the
          "Terms and Conditions of Subscription for the Debentures" - Schedule
          "A".

         

        Read
          the
“Registration Rights Agreement” - Schedule “B”.

         

        Complete
          and Sign Annex A of the Registration Rights Agreement - Schedule "B", under
          the
          heading “Selling Securityholder Notice and Questionnaire”.

         

        Subscribers
          resident in the United States:

         

        Complete
          and sign the United States Accredited Investor Certificate - Appendix
          I.

         

      

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
       

      THIS
        SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
        1933,
        AS AMENDED (THE ‘‘SECURITIES ACT’’), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
        EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF,
        THE
        HOLDER (1) REPRESENTS THAT (A) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN
        REGULATION D UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND
        IS
        ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION
        S ADOPTED UNDER THE SECURITIES ACT; (2) AGREES THAT IT WILL NOT RESELL OR
        OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON SHARES ISSUABLE
        UPON EXERCISE OF SUCH SECURITY, EXCEPT (A) TO THE ISSUER OR A SUBSIDIARY
        THEREOF; (B) TO PERSONS OTHER THAN U.S. PERSONS OUTSIDE THE UNITED STATES
        IN
        COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT; (C) PURSUANT TO THE
        EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES
        ACT OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT (IF AVAILABLE);
        OR
        (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
        ACT,
        AND (3) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY, FURNISH
        TO
        THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY
        BE
        REQUIRED TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
        FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
        THE
        SECURITIES ACT. AS USED HEREIN, THE TERMS ‘‘OFFSHORE TRANSACTION,’’ ‘‘UNITED
        STATES’’ AND ‘‘U.S. PERSON’’ HAVE THE MEANING GIVEN TO THEM BY REGULATION S
        UNDER THE SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY
        OR
        INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY
        OR
        ANY COMMON SHARES ISSUABLE UPON EXERCISE OF SUCH SECURITY, EXCEPT AS PERMITTED
        BY THE SECURITIES ACT.

       

      WARRANTS
        PURCHASED PURSUANT TO THIS SUBSCRIPTION AGREEMENT HAVE NOT BEEN AND WILL
        NOT BE
        REGISTERED UNDER THE SECURITIES ACT. THE SECURITIES TO BE ISSUED UPON EXERCISE
        OF SUCH WARRANTS WILL NOT BE INITIALLY REGISTERED AND MAY OR MAY NOT LATER
        BECOME REGISTERED FOR RESALE UNDER THE SECURITIES ACT. NEITHER ANY WARRANT
        PURCHASED HEREUNDER NOR ANY SECURITIES ISSUED UPON EXERCISE OF SUCH WARRANT
        MAY
        BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON, AS SUCH TERM IS DEFINED
        IN
        REGULATION S PROMULGATED PURSUANT TO THE SECURITIES ACT, UNLESS REGISTERED
        UNDER
        THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS
        AVAILABLE.

       

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      SUBSCRIPTION
        DETAILS

    

    

    
      	To:	
              Apollo
                Gold Corporation
                ("Apollo")

            

    

    5655
      S.
      Yosemite Street, Suite 200, Greenwood Village, Colorado, U.S.A.
      80111-3220

     

    
      	
              And
                To:

            	
              Shoreline
                Pacific LLC ("Shoreline Pacific" or the
                "Agent")

            

    

    655
      Montgomery Street, Suite 1010, San Francisco, CA 94111

     

    
      	
              And
                To:

            	
              Such
                other agents or affiliates that participate in a syndicate with Shoreline
                Pacific in connection with the Private Placement (as hereafter defined)
                (collectively, with Shoreline Pacific, the "Agents")

            

    

     

    The
      undersigned (the "Subscriber")
      hereby
      irrevocably subscribes for and agrees to purchase from Apollo, on and subject
      to
      the terms and conditions set forth in this Agreement, that principal amount
      of
      the Debenture set forth below. Each US$1,000 principal amount of the Debenture
      is convertible,
      at the
      option of the holder at any time before Maturity (hereinafter defined), into
      2,000 common shares of Apollo, and will be accompanied by 2,000 common share
      purchase warrants (the
      "Debenture
      Warrants")
      of
      Apollo,
      on the
      terms and conditions contained in this Agreement. The Debentures and the
      Debentures Warrants are referred to collectively as the "Offered
      Securities".
      The
      Subscriber agrees to be bound by the terms and conditions set forth in the
      attached Schedule "A"-"Terms and Conditions of Subscription for Debentures"
      and
      the attached Schedule “B” - Registration Rights Agreement (the “Registration
      Rights Agreement”,
      including, without limitation, the representations, warranties and covenants
      set
      forth in the applicable appendices attached hereto. 

     

    
      	
              Subscriber
                Information:

               

              See
                Schedule "C" 
                

              

              (Name
                of Subscriber - please print)

               

              By:

              
                
(Authorized
                Signature)

               

              
                

              

              (Official
                Capacity or Title - please print)

               

              
                

              

              (Please
                print name) 

               

                

              

              (Subscriber’s
                Address)

               

              
                

              

              (Telephone
                Number)            (Fax
                Number)

               

              
                

              

              (Email
                Address)

               

              Beneficial
                Subscriber Information:

               

              If
                the Subscriber is acting as agent for a beneficial Subscriber, the
                name
                and address of such beneficial Subscriber is as follows:

               

               

                

              

              (Name
                of Principal)

               

              
                

              

              (Address)

               

              
                

              

              (Contact
                Name)

               

              
                

              

              (Alternate
                Contact)

               

              
                

              

              (Telephone
                Number) (Fax Number)

               

              
                

              

              (Email
                Address)

            	 	
              Particulars
                of Debenture Purchase:

               

              Principal
                Amount of Debenture: US$

               

              Register
                the Debenture and Debenture Warrants as set forth
                below:

               

              See
                Schedule "C" 
                

              

              (Name)

               

               

                

              

              (Account
                reference, if applicable)

               

               

                

              

              (Address)

               

               

              Deliver
                the Certificates representing the Debenture and the Debenture Warrants
                as
                set forth below:

               

               

              See
                Schedule "C" 
                

              

              (Name)

               

               

                

              

              (Account
                reference, if applicable)

               

               

                

              

              (Contact
                Name)

               

               

                

              

              (Address)

            

    

     

    
      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

    

     

    Confirmation
      and Acceptance. 

     

    Apollo
      hereby accepts the subscription as set forth above on the terms and conditions
      contained in this Agreement and Apollo represents and warrants to the Subscriber
      that the representations and warranties made by Apollo to Shoreline Pacific
      in
      the Agency Agreement (as defined herein) are true and correct in all material
      respects as of the Closing Date (save and except as waived by Shoreline Pacific)
      and that the Subscriber is entitled to rely thereon; and hereby agrees to be
      bound by the terms of the Registration Rights Agreement. 

     

    DATED
      as of
      the __ day
      of
      ____________,
      2007.

     

    

     

    APOLLO
      GOLD CORPORATION

     

    Per:

    
      

    

    Authorized
      Signing Officer

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      "A"

     

    TERMS
      AND CONDITIONS OF SUBSCRIPTION FOR THE DEBENTURES

     

    
      	1.0	
              INTERPRETATION

            

    

     

    
      	1.1	
              In
                this Agreement, unless the context otherwise
                requires:

            

    

     

    
      	
              (a)

            	
              "Agency
                Agreement"
                means the agency agreement to be entered into between Shoreline Pacific,
                on its own behalf and as agent for the Subscribers, and Apollo in
                connection with the Private Placement and the private placement of
                the
                Debentures;

            

    

     

    
      	
              (b)

            	
              "Agent"
                means Shoreline Pacific LLC, and such other agents or affiliates
                that
                participate in a syndicate with Shoreline
                Pacific;

            

    

     

    
      	
              (c)

            	
              "Agreement"
                means this Subscription Agreement to be entered into between Apollo
                and
                the Subscriber and to be acknowledged on behalf of the Agent, and
                includes
                all schedules and appendices attached hereto, in each case as they
                may be
                amended or supplemented from time to
                time;

            

    

     

    
      	
              (d)

            	
              "Apollo"
                means Apollo Gold Corporation;

            

    

     

    
      	
              (e)

            	
              "Applicable
                Securities Laws"
                means, in respect of each and every offer and sale of the Debentures
                and
                the Debenture Warrants, the securities legislation and exchange rules
                having application thereto and the rules, policies, notices and orders
                issued by applicable securities regulatory authorities having application
                thereto;

            

    

     

    
      	
              (f)

            	
              "Business
                Day"
                means any day except Saturday, Sunday or a statutory holiday in Toronto,
                Ontario or Denver, Colorado;

            

    

     

    
      	
              (g)

            	
              "Closing"
                means the closing of the purchase of the Debentures and Debenture
                Warrants
                by the Subscriber;

            

    

     

    
      	
              (h)

            	
              "Closing
                Date"
                means February *, 2007 or such other date or dates as Apollo and
                the Agent
                may mutually agree upon in writing;

            

    

     

    
      	
              (i)

            	
              "Closing
                Time"
                means 10:00 a.m. (Toronto time) on the Closing Date or such other
                time as
                Apollo and the Agent may mutually agree upon in
                writing;

            

    

     

    
      	
              (j)

            	
              "Common
                Share"
                means a common share in the share capital of
                Apollo;

            

    

     

    
      	
              (k)

            	
              "Compensation
                Warrants"
                has the meaning attributed to it in Section 8.1;

            

    

     

    
      	
              (l)

            	
              "Compensation
                Warrant Shares"
                has the meaning attributed to it in Section 8.1;

            

    

     

    
      	
              (m)

            	
              "Debentures"
                means the aggregate principal amount of up to $8,580,000 convertible
                debentures of Apollo, convertible into Common Shares during its term
                at
                $0.50 per share;

            

    

     

    
      	
              (n)

            	
              "Debenture
                Warrants"
                means purchase warrants of Apollo issuable on purchase of the Debentures
                at the rate of 2,000 Debenture Warrants for each $1,000 of Debentures,
                with each Debenture Warrant entitling the holder to purchase one
                Common
                Shares for a two year period from the date of issue at $0.50 per
                share;

            

    

     

    
      	
              (o)

            	
              "Distribution
                Compliance Period"
                means the distribution compliance period as defined in Regulation
                S,

            

    

     

    
      	
              (p)

            	
              "Dollar"
                or "$"
                means the lawful currency of the United States of America, unless
                otherwise specifically
                indicated;

            

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    
      	
              (q)

            	
              "Exemptions"
                means the exemptions from prospectus and registration requirements
                under
                Applicable Securities Laws;

            

    

     

    
      	
              (r)

            	
              "Expiry
                Time"
                has the meaning attributed to it in Section
                3.2;

            

    

     

    
      	
              (s)

            	
              "Maturity"
                means 2 years from the date of issue of the
                Debentures;

            

    

     

    
      	
              (t)

            	
              "NI
                45-106"
                means National Instrument 45-106 - Prospectus
                and Registration Exemptions of
                the Canadian Securities
                Administrators;

            

    

     

    
      	
              (u)

            	
              "Offered
                Securities"
                means the Debentures and Debenture Warrants of
                Apollo;

            

    

     

    
      	
              (v)

            	
              "Off
                Shore Transaction"
                means an off shore transaction as defined in Regulation
                S;

            

    

     

    
      	
              (w)

            	
              "Private
                Placement"
                means the offering by Apollo for sale on a private placement basis
                of the
                Debentures;

            

    

     

    
      	
              (x)

            	
              "Registration
                Rights Agreement"
                means the Registration Rights Agreement attached hereto as Schedule
                "B";

            

    

     

    
      	
              (y)

            	
              "Registration
                Statement"
                means the registration statement that Apollo agrees to file with
                the SEC
                pursuant to the Registration Rights Agreement to register the Underlying
                Shares for resale pursuant to the terms of the Registration Rights
                Agreement attached hereto as
                Schedule"B";

            

    

     

    
      	
              (z)

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

            

    

     

    
      	
              (aa)

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

            

    

     

    
      	
              (bb)

            	
              "SEC"
                means the United States Securities and Exchange
                Commission;

            

    

     

    
      	
              (cc)

            	
              "Subscription
                Price"
                means the aggregate subscription price paid by each Subscriber for
                the
                Debentures;

            

    

     

    
      	
              (dd)

            	
              "Underlying
                Shares"
                means, collectively, the Common Shares issuable upon the conversion
                of the
                Debentures, and upon the exercise of the Debenture
                Warrants;

            

    

     

    
      	
              (ee)

            	
              "United
                States"
                means the United States as defined in Regulation
                S;

            

    

     

    
      	
              (ff)

            	
              "U.S.
                Persons"
                means U.S. persons as defined in Regulation S;
                and

            

    

     

    
      	
              (gg)

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

            

    

     

    1.2    Time
      is
      of the essence of this Agreement. 

     

    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
      monetary amounts specified in this Agreement are in the lawful currency of
      the
      United States of America, unless otherwise specified.

     

    1.6    This
      Agreement is governed by, subject to and interpreted in accordance with the
      laws
      prevailing in the Province of Ontario and the federal laws of Canada applicable
      therein, and the courts of the Province of Ontario will have the exclusive
      jurisdiction over any dispute arising in connection with this
      Agreement.

    
      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

    

     

    
      	2.0	
              SUBSCRIPTION
                FOR THE DeBENTURES AND DEBENTURE
                WARRANTS

            

    

     

    2.1    The
      Subscriber hereby confirms its irrevocable subscription for and offer to
      purchase the Offered Securities from Apollo, on and subject to the terms and
      conditions set out in this Agreement.

     

    
      	3.0	
              DESCRIPTION
                OF THE DEBENTURES,
                DEBENTURE WARRANTS, ETC.

            

    

     

    3.1    The
      Debentures and the Debenture Warrants will be issued and registered in the
      name
      of the Subscriber or its nominee as per the instructions on page (i) of this
      Agreement.

     

    3.2    Each
      $1,000 principal amount of Debentures will be convertible at the option of
      the
      Subscriber, for no additional consideration, into 2,000 Common Shares, at any
      time up until 5:00 pm (Toronto time) (the "Expiry
      Time")
      on the
      Maturity Date.

     

    3.3    Filing
      Registration Statement

     

    Apollo
      will use its commercially reasonable best efforts:

     

    
      	
              (a)

            	
              to
                file the Registration Statement in respect of the Underlying Shares
                and
                obtain additional listing approval of the Underlying Shares on the
                American Stock Exchange as more fully set forth in the Registration
                Rights
                Agreement, attached hereto as Schedule "B";
                and

            

    

     

    (b)to
      obtain
      the conditional listing of the Underlying Shares on the Toronto Stock
      Exchange.

     

    
      	
              4.0

            	
              REPRESENTATIONS,
                WARRANTIES, COVENANTS AND ACKNOWLEDGEMENTS OF THE
                SUBSCRIBER

            

    

     

    4.1    The
      Subscriber represents, warrants, covenants and acknowledges, as applicable,
      to
      and with Apollo and the Agent, on the Subscriber’s own behalf and on behalf of
      any disclosed principal for whom the Subscriber is acting as agent (and
      acknowledges that Apollo and the Agent, and their respective counsel, are
      relying thereon), as at the date hereof and as at the Closing Time:

     

    
      	
              (a)

            	
              the
                Agent has been retained by Apollo to sell the Offered Securities
                pursuant
                to the Private Placement to which this Agreement relates on an agency
                "best efforts" basis in the United States such that the total principal
                amount of the Debentures that may be issued by Apollo pursuant to
                the
                Private Placement is not expected to exceed $8,580,000. The Subscriber
                understands that the Private Placement is not subject to any minimum
                subscription level and therefore any funds invested are available
                to and
                will be paid to Apollo in accordance with the provisions of this
                Agreement
                and need not be refunded to the
                Subscriber;

            

    

     

    
      	
              (b)

            	
              the
                Offered Securities are being offered for sale only on a "private
                placement" basis and that the sale and delivery of the Offered Securities
                is conditional upon such sale being exempt from the requirements
                as to the
                filing of a prospectus under the Applicable Securities Laws or upon
                the
                issuance of such orders, consents or approvals as may be required
                to
                permit such sale without the requirement of filing a prospectus or
                delivering an offering memorandum, that no prospectus has been filed
                by
                Apollo with any of the applicable securities regulatory authorities
                in
                connection with the issuance of the Offered Securities, and
                that:

            

    

     

    
      	 	
              (i)

            	
              as
                a result, certain protections, rights and remedies provided by the
                Applicable Securities Laws including statutory rights of rescission
                or
                damages, will not be available to the
                Subscriber;

            

    

     

    
      	 	
              (ii)

            	
              no
                securities commission or similar regulatory authority has reviewed
                or
                passed on the merits of the Offered
                Securities;

            

    

     

    
      	 	
              (iii)

            	
              there
                is no government or other insurance covering the Debentures, the
                Debenture
                Warrants or the Underlying
                Shares;

            

    

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iv)

            	
              the
                Subscriber may not receive information that would otherwise be required
                to
                be provided to the Subscriber under the Applicable Securities Laws;
                and

            

    

     

    
      	 	
              (v)

            	
              Apollo
                is relieved from certain obligations that would otherwise apply under
                the
                Applicable Securities Laws;

            

    

     

    
      	
              (c)

            	
              the
                Subscriber certifies that it is or, if the Subscriber is acting as
                agent
                for a disclosed principal, such principal is, resident in the jurisdiction
                set out on the first page of this Agreement under the heading "Subscriber
                Information" and "Beneficial Subscriber Information", as the case
                may be,
                which address is the residence or place of business of the Subscriber
                or
                such disclosed principal, and that such address was not obtained
                or used
                solely for the purpose of subscribing for the Offered
                Securities;

            

    

     

    
      	
              (d)

            	
              if
                the Subscriber is not a resident of the United States, the Subscriber
                represents and agrees that:

            

    

     

    
      	 	 	
              it
                is acquiring the Offered Securities in an Off Shore
                Transaction;

            

    

     

    
      	 	 	
              it
                is not a "U.S." person (as defined in Regulation S) and is not acquiring
                the Offered
                Securities
                for the account or benefit of any U.S.
                person;

            

    

     

    
      	 	 	
              it
                will not engage in hedging transactions with regard to the Apollo's
                securities unless conducted in compliance with the U.S. Securities
                Act;

            

    

     

    
      	 	 	
              it
                will not resell any of Apollo's securities unless in accordance with
                the
                provisions of Regulation S and in accordance with applicable state
                securities laws in the United States, pursuant to an effective
                registration statement under the U.S. Securities Act with respect
                to such
                securities or pursuant to an available exemption from registration
                under
                the U.S. Securities Act; provided that the Subscriber provides an
                opinion
                of counsel or other evidence of exemption, in form reasonably satisfactory
                to U.S. counsel to Apollo; and

            

    

     

    
      	 	 	
              Apollo
                will refuse to register any transfer of any of the Debentures, the
                Debenture Warrants and the Underlying Shares not made in accordance
                with
                the provisions of Regulation S, pursuant to registration under the
                U.S.
                Securities Act, pursuant to an effective registration statement under
                the
                U.S. Securities Act with respect to such securities or pursuant to
                an
                available exemption from
                registration;

            

    

     

    
      	
              (e)

            	
              the
                Subscriber is purchasing the Offered
                Securities:

            

    

     

    
      	 	
              (i)

            	
              as
                principal for its own account and not for the benefit of any other
                person
                or is deemed under the Applicable Securities Laws to be purchasing
                the
                Offered Securities as principal, and in either case, is purchasing
                the
                Offered Securities for investment only and not with a view to the
                resale
                or distribution of all or any of the Offered Securities;
                or

            

    

     

    
      	 	
              (ii)

            	
              as
                agent for a disclosed principal and is not deemed under the Applicable
                Securities Laws to be purchasing the Offered 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
                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 Offered Securities;

            

    

     

    
      	
              (f)

            	
              if
                the Subscriber or its disclosed principal is a resident of the United
                States, or is a U.S. Person or purchasing on behalf or for the benefit
                of
                a U.S. Person, such Subscriber or disclosed principal, as the case
                may be,
                falls within one or more of the sub-paragraphs of the definition
                of
                "accredited investor" under the U.S. Securities Act, as set out in
                Appendix II hereto (the Subscriber having checked and initialled
                the
                applicable subparagraph(s));

            

    

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    
      	
              (g)

            	
              no
                person has made to the Subscriber any written or oral
                representations:

            

    

     

    
      	 	 	
              that
                any person will resell or repurchase any of the Debentures, the Debenture
                Warrants and the Underlying Shares;

            

    

     

    
      	 	 	
              that
                any person will refund the purchase price of any of the Debentures;
                or

            

    

     

    
      	 	 	
              as
                to the future price or value of any of the Debentures, the Debenture
                Warrants and the Underlying Shares;

            

    

     

    
      	
              (h)

            	
              the
                Subscriber, and any beneficial purchaser for whom it is acting, is
                at
                arm's length (within the meaning of the Applicable Securities Laws)
                with
                Apollo, except as disclosed in writing by the Subscriber to Apollo
                and the
                Agent;

            

    

     

    
      	
              (i)

            	
              the
                Subscriber is not (other than if the Subscriber is an officer or
                director
                of Apollo or any of its affiliates) and will not become a "control
                person"
                of Apollo by virtue of the purchase of the Offered Securities and
                does not
                intend to act in concert with any other person to form a control
                group of
                Apollo;

            

    

     

    
      	
              (j)

            	
              this
                Subscription has not been solicited in any manner contrary to the
                Applicable Securities Laws;

            

    

     

    
      	
              (k)

            	
              the
                Subscriber (other than if the Subscriber is an officer or director
                of
                Apollo or any of its affiliates) has no knowledge of a "material
                fact" or
                "material change" (as those terms are defined in the Applicable Securities
                Laws) in respect of the affairs of Apollo that has not been generally
                disclosed to the public;

            

    

     

    
      	
              (l)

            	
              the
                offer made by this subscription is
                irrevocable;

            

    

     

    
      	
              (m)

            	
              Apollo
                will have the right to accept this subscription in whole or in part
                and
                the acceptance of this subscription offer will be conditional upon
                the
                sale of the Offered Securities to the Subscriber being exempt from
                the
                prospectus and registration requirements of the Applicable Securities
                Laws;

            

    

     

    
      	
              (n)

            	
              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;

            

    

     

    
      	
              (o)

            	
              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
                party or
                by which it is or may be bound;

            

    

     

    
      	
              (p)

            	
              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;

            

    

     

    
      	
              (q)

            	
              in
                the case of a subscription by it for the Offered Securities acting
                as
                agent for a disclosed principal, it is duly authorized to execute
                and
                deliver this Agreement and all other necessary documentation in connection
                with such subscription on behalf of such principal and this Agreement
                has
                been duly authorized, executed and delivered by or on behalf of,
                and
                constitutes a legal, valid and binding agreement of, such
                principal;

            

    

     

    
      	
              (r)

            	
              the
                delivery of this subscription, the acceptance hereof by Apollo and
                the
                issuance of the Offered Securities to the Subscriber complies with
                all
                applicable laws of the Subscriber’s jurisdiction of residence and domicile
                and will not cause Apollo or any of its officers or directors to
                become
                subject to or require any disclosure, prospectus or other reporting
                requirement to which Apollo is not currently
                subject;

            

    

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

    
      	
              (s)

            	
              if
                required by the Applicable Securities Laws, policy or order or by
                any
                securities commission, stock exchange or other regulatory authority,
                the
                Subscriber will execute, deliver, file and otherwise assist Apollo
                in
                filing such reports, undertakings and other documents as may be
                required;

            

    

     

    
      	
              (t)

            	
              the
                Subscriber has not purchased the Offered 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;

            

    

     

    
      	
              (u)

            	
              The
                funds representing the Subscription Price 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) Act
                (Canada) (the "PCMLA")
                and the Subscriber acknowledges that the Corporation 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
                its knowledge: 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 it shall promptly notify the Corporation if the Subscriber
                discovers that any of such representations ceases to be true and
                provide
                the Corporation with appropriate information in connection
                therewith;

            

    

     

    
      	
              (v)

            	
              The
                Subscriber is not purchasing the Offered Securities with knowledge
                of
                material information concerning the Corporation which has not been
                generally disclosed;

            

    

     

    
      	
              (w)

            	
              No
                person has made any written or oral
                representations:

            

    

     

    
      	 	
              (i)

            	
              that
                any person will resell or repurchase the Offered
                Securities;

            

    

     

    
      	 	
              (ii)

            	
              that
                any person will refund the Subscription Price;
                or

            

    

     

    
      	 	
              (iii)

            	
              as
                to the future price or value of the Offered
                Securities;

            

    

     

    
      	
              (x)

            	
              the
                Subscriber and each beneficial purchaser for whom it is acting
                acknowledges that the Offered Securities are speculative in nature
                and
                that there are risks associated with the purchase of the Offered
                Securities and the Subscriber and each beneficial purchaser for whom
                it is
                acting has such knowledge, sophistication and experience in business
                and
                financial matters as to be capable of evaluating the merits and risks
                of
                its investment in the Offered Securities, fully understands the
                speculative nature of the Offered Securities and is able to bear
                the
                economic risk of loss of its entire
                investment;

            

    

     

    
      	
              (y)

            	
              Apollo
                may be required by law or otherwise to disclose to regulatory authorities
                the identity of the Subscriber and each beneficial purchaser for
                whom the
                Subscriber may be acting;

            

    

     

    
      	
              (z)

            	
              the
                Subscriber has not received, nor has it requested, nor does it have
                any
                need to receive, any offering memorandum or any other document from
                Apollo
                describing the business and affairs of Apollo with respect to the
                offering
                and purchase of the Offered
                Securities;

            

    

     

    
      	
              (aa)

            	
              this
                subscription is not enforceable by the Subscriber unless it has been
                accepted by Apollo and the Subscriber waives any requirement on Apollo’s
                behalf to immediately communicate its acceptance of this subscription
                to
                the Subscriber;

            

    

     

    
      	
              (bb)

            	
              in
                connection with the Subscriber’s subscription, the Subscriber has not
                relied upon Apollo for investment, legal or tax advice, and has in
                all
                cases sought or elected not to seek the advice of the Subscriber’s own
                personal investment advisers, legal counsel and tax advisers and
                the
                Subscriber is able, without impairing its financial condition, to
                hold the
                Debentures, the Debenture Warrants and the Underlying Shares for
                an
                indefinite period of time and to bear the economic risk of, and withstand
                a complete loss of, the investment and it
                can

            

    

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

    otherwise
      be reasonably assumed to have the capacity to protect its own interest in
      connection with its investment; 

     

    
      	
              (cc)

            	
              it
                has relied solely upon publicly available information relating to
                Apollo
                and not upon any verbal or written representation as to fact or otherwise
                made by or on behalf of Apollo or the Agent, such publicly available
                information having been delivered to the Subscriber without independent
                investigation or verification by the Agent and agrees that the Agent,
                the
                Agent's counsel and their respective directors, officers, employees,
                agents and representatives assume no responsibility or liability
                of any
                nature whatsoever for the accuracy, adequacy or completeness of the
                publicly available information or as to whether all information concerning
                Apollo required to be disclosed by Apollo has been generally disclosed
                and
                acknowledges that the Agent's counsel and Apollo’s counsel are acting as
                counsel to the Agent and Apollo, respectively, and not as counsel
                to the
                Subscriber; 

            

    

     

    
      	
              (dd)

            	
              all
                costs and expenses incurred by the Subscriber (including any fees
                and
                disbursements of any special counsel or other advisors retained by
                the
                Subscriber) relating to the purchase of the Offered Securities shall
                be
                borne by the Subscriber; and

            

    

     

    
      	
              (ee)

            	
              none
                of the funds the Subscriber is using to purchase the Offered Securities
                is, to the knowledge of the Subscriber, proceeds obtained or derived,
                directly or indirectly, as a result of illegal
                activities.

            

    

     

    4.2    The
      Subscriber acknowledges and agrees that the foregoing representations and
      warranties are made by the Subscriber with the intent that they may be relied
      upon by Apollo and the Agent in determining its eligibility as a purchaser
      of
      the Offered Securities under Applicable Securities Laws and the Subscriber
      hereby agrees to indemnify and hold harmless Apollo, the Agent and their
      representatives, directors, officers, employees and underwriters from and
      against all losses, liability, claims, costs, expenses and damages from reliance
      thereon in the event that such representations and warranties are untrue in
      any
      material respect, such agreement regarding indemnification to survive the
      Closing and to continue in full force and effect for the benefit of the Agents
      notwithstanding any subsequent disposition by the Subscriber of the Debentures,
      the Debenture Warrants or the Underlying Shares. The Subscriber further agrees
      that by accepting the Offered Securities, the Subscriber shall be representing
      and warranting that the foregoing representations and warranties contained
      herein or in any document furnished by the Subscriber to Apollo or the Agent
      are
      true as at the Closing with the same force and effect as if they had been made
      by the Subscriber as at the Closing and shall survive the Closing and continue
      in full force and effect for the benefit of Apollo and the Agent notwithstanding
      any subsequent disposition by the Subscriber of the Debentures, the Debenture
      Warrants or the Underlying Shares. The Subscriber undertakes to immediately
      notify Apollo at the address specified on page (i) of this Agreement of any
      change in any statement or other information relating to the Subscriber set
      forth herein which takes place prior to the Closing Time. 

     

    
      	5.0	
              BENEFIT
                OF AGENCY AGREEMENT

            

    

     

    5.1    By
      execution of this Agreement, Apollo hereby agrees that the Subscriber shall
      have
      the benefit of the representations and warranties made by Apollo to the Agent
      as
      set forth in the Agency Agreement. Such representations and warranties shall
      form an integral part of this Agreement and shall survive the Closing and
      continue in full force and effect for the benefit of the Subscriber in
      accordance with the Agency Agreement. The Subscriber acknowledges and agrees
      that the Agent and Apollo may vary, amend, alter or waive, in whole or in part,
      one or more terms to be set forth in the Agency Agreement in such manner and
      on
      such terms and conditions as they may determine, acting reasonably, and that
      any
      such variation, amendment, alteration or waiver shall not affect in any way
      the
      obligations of the Subscribers or such others for whom the Subscriber is
      contracting hereunder, provided, however, that the Agent shall not vary, amend,
      alter or waive any such term or condition where to do so would result in a
      material change to any of the material attributes of the Offered Securities
      and
      (b) provide notice thereof to the Subscriber. 

     

    5.2    Apollo
      agrees to indemnify, defend and hold the Subscriber (which term shall, for
      the
      purposes of this provision, include the Subscriber or its shareholders,
      managers, partners, directors, officers, members, employees, direct or indirect
      investors, agents and affiliates and assignees and the stockholders, partners,
      directors, members, managers, officers, employees direct or indirect investors
      and agents of such affiliates and assignees) harmless against any and all
      liabilities, loss, cost or damage, together with all reasonable costs and
      expenses related thereto (including reasonable legal and accounting fees and
      expenses), arising from, relating to, or connected with the untruth, inaccuracy
      or breach of any statement, representation, warranty or covenant of Apollo
      contained in this Agreement or in the Agency Agreement. 

    
      
        
          
          

        

        
          A-7

          
            

          

        

        
          
          

        

      

    

     

    Apollo
      undertakes to notify the Agent immediately of any change in any representation,
      warranty or other information relating to Apollo set forth in this Agreement
      or
      in the Agency Agreement which takes place prior to Closing.

     

    
      	6.0	
              WITHDRAWAL
                OF
                SUBSCRIPTION

            

    

     

    6.1    If
      the
      Agent terminates its obligations with respect to the Private Placement and/or
      under the Agency Agreement before the Closing, the Subscriber reserves the
      right
      to withdraw this subscription and to terminate its obligations hereunder at
      any
      time before Closing and the Subscriber hereby appoints the Agent as its agent
      for the purpose of notifying Apollo of the withdrawal or termination of its
      subscription.

     

    6.2    If
      the
      Closing does not occur on or before February 28, 2007 or such later date as
      agreed to by Apollo, the Agent and the Subscriber, notwithstanding any
      provisions to the contrary in this Agreement or in the Agency Agreement, the
      Subscription Price will be returned to the Subscriber without interest or
      deduction and the Subscriber will have the right to withdraw this subscription
      and to terminate its obligations hereunder.

     

    
      	7.0	
              CLOSING

            

    

     

    7.1    Subject
      to the receipt of all completed items in accordance with Section 7.4, the
      Closing will take place as contemplated in the Agency Agreement on the Closing
      Date.

     

    7.2    If,
      prior
      to the Closing, the terms and conditions contained in this Agreement and the
      Agency Agreement have been complied with to the satisfaction of the Agent,
      or
      waived by them, the Agent shall deliver to Apollo all completed Agreements
      and
      cause payment of the aggregate Subscription Price for all of the Offered
      Securities sold pursuant to the Agency Agreement from the escrow account held
      by
      Signature Bank against delivery by Apollo of certificates representing the
      Offered Securities and such other documentation as may be required pursuant
      to
      this Agreement and the Agency Agreement. If, prior to the Closing, the terms
      and
      conditions contained in this Agreement (other than delivery by Apollo to the
      Subscriber of certificate representing the Offered Securities) and the Agency
      Agreement have not been complied with to the satisfaction of the Agent, or
      waived by them, the Agent, Apollo and the Subscriber will have no further
      obligations under this Agreement.

     

    7.3    The
      Closing of the Private Placement is conditional upon the following:

     

    
      	
              (a)

            	
              Apollo
                and the Agent having entered into the Agency Agreement on mutually
                satisfactory terms, to include customary warranties and indemnities
                and
                rights of termination in favour of the Agent, and such agreement
                having
                become unconditional in all respects and not having been terminated;
                and

            

    

     

    
      	
              (b)

            	
              the
                issue and sale of the Offered Securities being exempt from the requirement
                to file a prospectus, registration statement or similar document
                under the
                Applicable Securities Laws relating to the sale of the Offered Securities,
                or Apollo having received such orders, consents or approvals as may
                be
                required to permit such sale without the requirement of filing a
                prospectus, registration statement or similar
                document.

            

    

     

    7.4    The
      Subscriber acknowledges and agrees that the obligations of Apollo hereunder
      are
      conditional on the accuracy of the representations and warranties of the
      Subscriber contained in this Agreement as of the date of this Agreement, and
      as
      of the Closing Time as if made at and as of the time of Closing, and the
      fulfillment of the following additional conditions as soon as possible and
      in
      any event not later than the Closing Time:

     

    
      	
              (a)

            	
              payment
                by the Subscriber of the Subscription Price by certified cheque,
                bank
                draft or wire transfer (in accordance with the instructions set forth
                on
                the first page hereto) payable as the Agent may
                direct;

            

    

     

    
      	
              (b)

            	
              the
                Subscriber having properly completed, signed and delivered this
                Agreement;

            

    

     

    
      	
              (c)

            	
              the
                Subscriber having properly completed, signed and delivered the “Selling
                Securityholder Notice and Questionnaire” attached as Annex A to the
                Registration Rights Agreement attached hereto as Appendix II;
                and

            

    

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

    
      	
              (d)

            	
              the
                Subscriber having properly completed, signed and delivered any further
                documentation as required under Applicable Securities Laws or by
                any
                applicable stock exchange or other regulatory authority and the Subscriber
                covenants and agrees to do so upon request by
                Apollo.

            

    

     

    7.5    The
      Subscriber acknowledges that the Private Placement may be completed in one
      or
      more partial closings at the agreement of Apollo and the Agent and that the
      Closing as contemplated in this Agreement may be effected at one or more of
      such
      partial closings.

     

    7.6    Apollo
      acknowledges and agrees that the obligations of the Subscriber hereunder are
      conditional on the accuracy of the representations and warranties of Apollo
      contained in this Agreement and in the Agency Agreement as of the date of such
      agreements, and as of the Closing Time as if made at and as of the time of
      Closing, and the fulfillment of the following additional
      conditions:

     

    
      	
              (a)

            	
              the
                covenants of Apollo have been performed, satisfied and complied with,
                where applicable, as at the closing
                Time;

            

    

     

    
      	
              (b)

            	
              Apollo
                has delivered to the Agent's counsel and counsel to the Subscriber
                the
                following items:

            

    

     

    
      	 	
              (i)

            	
              a
                copy of the certificates representing the Offered Securities purchased
                by
                the Subscriber registered in the name of the Subscriber or its
                nominee;

            

    

     

    
      	 	
              (ii)

            	
              a
                copy of this Agreement duly executed by
                Apollo;

            

    

     

    
      	 	
              (iii)

            	
              a
                copy of a certificate executed by the chief executive officer or
                the chief
                financial officer of Apollo, dated as of Closing Date, as required
                under
                Section 6(g) of the Agency Agreement and such other matters as may
                be
                reasonably requested by the Agent or their counsel;
                and

            

    

     

    
      	 	
              (iv)

            	
              such
                other documents relating to the transactions contemplated by this
                Agreement as the Agent or their counsel may reasonably
                request.

            

    

     

    
      	8.0	
              APPOINTMENT
                OF
                AGENT

            

    

     

    8.1    Compensation
      of Agent

     

    
      	
              (a)

            	
              The
                Subscriber understands that the Agent will receive a commission from
                Apollo in connection with the Private Placement payable in cash equal
                to
                7.0% of the subscription price received by Apollo from the sale of
                the
                Offered Securities, together with compensation warrants (the "Compensation
                Warrants")
                equal to that number of Common Shares purchasable by an amount equal
                to
                7.0% of the gross proceeds raised by the Agents from the Private
                Placement
                at $0.50 per Common Share. Each Compensation Warrant will entitle
                the
                holder to purchase one Common Share (a "Compensation
                Warrant Share")
                during a two year period from the date of issue at $0.50 per share.
                

            

    

     

    
      	
              (b)

            	
              No
                other fee or commission is payable by Apollo in connection with the
                sale
                of the Offered Securities; however, Apollo will pay certain fees
                and
                expenses of the Agent in connection with the Private Placement as
                set out
                in the Agency Agreement, and in any agreement with Regent Securities
                Capital Corporation (or an affiliate thereof) and
                Apollo.

            

    

     

    8.2    The
      Subscriber on its own behalf or (if applicable) on behalf of others for whom
      the
      Subscriber is contracting hereunder, hereby irrevocably authorizes the
      Agent:

     

    
      	
              (a)

            	
              in
                their sole discretion, to act as the Subscriber’s representative at the
                Closing, to receive certificates representing the Offered Securities
                and
                to execute in its name and on its behalf all Closing receipts and
                documents required;

            

    

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)

            	
              to
                swear, accept, execute, file and record any documents (including
                receipts)
                necessary to accept delivery of the Offered Securities on the Closing
                and
                to terminate this subscription on behalf of the Subscriber pursuant
                to the
                terms of the Agency Agreement; and

            

    

     

    
      	
              (c)

            	
              to
                correct any minor errors in, or complete any minor information missing
                from the appendices attached hereto which have been executed by the
                Subscriber and delivered to Apollo.

            

    

     

    
      	9.0	
              HOLD
                PERIOD AND RESALE
                RESTRICTIONS

            

    

     

    9.1    The
      Subscriber understands and hereby acknowledges that:

     

    
      	
              (a)

            	
              the
                Offered Securities issuable pursuant to the Private Placement will
                be
                subject to certain resale restrictions imposed under Applicable Securities
                Laws and the rules of regulatory bodies having jurisdiction including,
                without limiting the generality of the foregoing, the requirement
                that the
                Offered Securities issuable pursuant to the Private Placement not
                be
                traded for a period of four months from the Closing Date as required
                under
                the Applicable Securities Laws in Canada, and the applicable restrictions
                under the U.S. Securities Act, except as permitted by Applicable
                Securities Laws, and that the Offered Securities and all securities
                issued
                in exchange or conversion thereof are “restricted securities” as defined
                under Rule 144 and may be resold only
                if:

            

    

     

    
      	 	
              (i)

            	
              the
                sale is to Apollo;

            

    

     

    
      	 	
              (ii)

            	
              the
                sale is made outside the United States in a transaction meeting the
                requirements of Rule 904 of Regulation S (or such successor rule
                or
                regulation then in effect), if available, and in compliance with
                applicable state securities laws;

            

    

     

    
      	 	
              (iii)

            	
              the
                sale is made pursuant to an exemption from the registration requirements
                under the U.S. Securities Act provided by Rule 144 thereunder, if
                available, and in accordance with any applicable state securities
                laws,
                and it has prior to such sale furnished to Apollo an opinion of counsel
                to
                that effect reasonably satisfactory to Apollo;
                or

            

    

     

    
      	 	
              (iv)

            	
              the
                sale is a transaction that does not require registration under the
                U.S.
                Securities Act or any applicable state securities laws, and it has
                prior
                to such sale furnished to Apollo an opinion of counsel to that effect
                reasonably satisfactory to Apollo;

            

    

     

    
      	
              (b)

            	
              while
                Apollo has agreed to file the Registration Statement (as described
                in the
                Registration Rights Agreement attached hereto as Schedule "B") registering
                the Underlying Shares for resale and cause it to be declared effective
                by
                the SEC, there is no assurance that Apollo will be able to cause
                the
                Registration Statement to be declared effective by the SEC, and if
                the
                Registration Statement is not declared effective by the SEC, the
                Underlying Shares (as well as the Debentures and the Debenture Warrants,
                which will not be registered by the Registration Statement in any
                event)
                may not be resold by the Subscriber, except pursuant to an exemption
                contained in the Applicable Securities Laws, which may not be available,
                and even if the Registration Statement is declared effective, the
                Debentures, the Debenture Warrants and the Underlying Shares remain
                restricted securities under the U.S. Securities Act and may only
                be sold
                pursuant to an effective registration requirements of the U.S. Securities
                Act or in the case of the sale of the Underlying Shares in the manner
                provided in the Registration Statement for the resale of such Common
                Shares; and

            

    

     

    
      	
              (c)

            	
              Legends
                on Certificates

            

    

     

    
      	 	 	
              For
                the period under the U.S. Securities Act when the Debentures, the
                Debenture Warrants and the Underlying Shares are restricted securities
                as
                defined in Rule 144 under the U.S. Securities Act, each certificate
                representing such security shall bear the following
                legend:

            

    

     

    THIS
      SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
      1933,
      AS AMENDED (THE ‘‘SECURITIES ACT’’), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
      EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
      HOLDER (1) REPRESENTS THAT (A) IT IS AN ACCREDITED

    
      
        
        

      

      
        A-10

        
          

        

      

      
        
        

      

    

     

    INVESTOR
      (AS DEFINED IN REGULATION D UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S.
      PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE
      WITH REGULATION S ADOPTED UNDER THE SECURITIES ACT; (2) AGREES THAT IT WILL
      NOT
      RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED, EXCEPT (A) TO THE ISSUER
      OR
      A SUBSIDIARY THEREOF; (B) TO PERSONS OTHER THAN U.S. PERSONS OUTSIDE THE UNITED
      STATES IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT; (C) PURSUANT
      TO
      THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER THE
      SECURITIES ACT OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT (IF
      AVAILABLE); OR (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT, AND (3) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS
      SECURITY, FURNISH TO THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
      INFORMATION AS MAY BE REQUIRED TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
      PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS
      ‘‘OFFSHORE TRANSACTION,’’ ‘‘UNITED STATES’’ AND ‘‘U.S. PERSON’’ HAVE THE MEANING
      GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT. IN ANY CASE, THE HOLDER
      HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION
      WITH
      REGARD TO THIS, EXCEPT AS PERMITTED BY THE SECURITIES ACT.

     

    
      	 	 	
              For
                so long as the Debenture Warrants are restricted securities as defined
                in
                Rule 144 under the U.S. Securities Act, each certificate representing
                a
                Debenture Warrant if not sold in the United States in the original
                offering pursuant to Regulation D will also bear the following
                legend:

            

    

     

    THIS
      WARRANT HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE SECURITIES TO
      BE
      ISSUED UPON EXERCISE OF THIS WARRANT WERE NOT INITIALLY REGISTERED AND MAY
      OR
      MAY NOT HAVE BEEN REGISTERED FOR RESALE UNDER THE SECURITIES ACT. THIS WARRANT
      MAY NOT BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON, AS SUCH TERM IS DEFINED
      IN REGULATION S PROMULGATED PURSUANT TO THE SECURITIES ACT, UNLESS REGISTERED
      UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS
      AVAILABLE.

     

    
      	 	 	
              the
                certificates representing the Debentures and the Debenture Warrants
                will
                bear a legend denoting the restrictions on transfer under Applicable
                Securities Laws (including, but not limited to, National Instrument
                45-102
                ("NI
                45-102")).

            

    

     

    
      	 	 	
              if
                at the date of the conversion or exercise of the Debentures or the
                Debenture Warrants, respectively, the applicable restriction period
                has
                not expired, the certificates representing the Underlying Shares
                will bear
                a legend as prescribed by NI
                45-102;

            

    

     

    
      	 	 	
              In
                addition to the foregoing legends, the certificates representing
                the
                Underlying Shares, if issued prior to such time as the restrictive
                legends
                set forth in clauses 9.1(c)(i) and (ii) are no longer required under
                applicable requirements of the U.S. Securities Act and all restrictions
                are removed with respect to such securities pursuant to applicable
                state
                securities laws, shall bear, in addition to any legend(s) required
                by
                Canadian securities laws and policies, the following legend:
                

            

    

     

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK
      EXCHANGE; HOWEVER, THE SAID SECURITIES CAN NOT BE TRADED THROUGH THE FACILITIES
      OF SUCH EXCHANGE SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY
      CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT "GOOD DELIVERY" IN SETTLEMENT
      OF
      TRANSACTIONS ON THE TORONTO STOCK EXCHANGE.".

    
      
        
        

      

      
        A-11

        
          

        

      

      
        
        

      

    

     

    Certificates
      representing the Debenture, the Debenture Warrants, and the Underlying Shares
      will bear a legend containing restrictions under the conformity with the U.S.
      Securities Act with respect to the resale of the securities of the type set
      forth in clauses 9.1(c)(i) and (ii) above. Until the earlier of (1) in the
      case
      of the Underlying Shares, such shares sold pursuant to an effective Registration
      Statement and the seller shall have provided evidence acceptable to U.S.
      securities counsel for Apollo that the seller has complied with the prospectus
      delivery requirements under the U.S. Securities Act; and (2) the holder of
      the
      applicable security has furnished to Apollo an opinion of U.S. securities
      counsel reasonably acceptable to Apollo that the securities represented by
      such
      certificates are no longer “restricted securities” as defined in Rule 144 under
      the U.S. Securities Act. Certificates representing the Debenture Warrants and
      the Underlying Shares will bear a legend containing restrictions in conformity
      with the U.S. Securities Act with respect to the resale of the securities of
      the
      type set forth in clauses 9.1(c)(i) and (ii) above; 

     

    
      	
              (d)

            	
              the
                Subscriber will not sell, assign or transfer the Debentures, the
                Debenture
                Warrants or the Underlying Shares except in accordance with the provisions
                of Applicable Securities Laws and stock exchange rules, if applicable,
                in
                the future.

            

    

     

    9.2    The
      Subscriber also acknowledges that it has been advised to consult its own legal
      advisors with respect to applicable resale restrictions and that it is solely
      responsible (and Apollo is not in any manner responsible) for complying with
      such restrictions, including, without limitation of the foregoing, as long
      as
      the Debentures, the Debenture Warrants and the Underlying Shares are restricted
      securities under the U.S. Securities Act, such securities may only be resold
      (a)
      to Apollo, (b) pursuant to Regulation S, (c) pursuant to another exemption
      from
      registration under the U.S. Securities Act or (d) pursuant to a registration
      statement declared effective under the U.S. Securities Act.

     

    9.3    Apollo
      shall indemnify, defend and hold the Subscriber (which term shall, for the
      purposes of this section, include the Subscriber or its shareholders, managers,
      partners, directors, officers, members, employees, direct or indirect investors,
      agents and affiliates and assignees and the stockholders, partners, directors,
      members, managers, officers, employees direct or indirect investors and agents
      of such affiliates and assignees) harmless against any and all liabilities,
      loss, cost or damage, together with all reasonable costs and expenses related
      thereto (including reasonable legal and accounting fees and expenses), arising
      from, relating to, or connected with an untrue, inaccurate or breached
      statement, representation, warranty or covenant of Apollo contained herein
      or in
      the Agency Agreement, as the case may be. Apollo undertakes to notify the
      Subscriber immediately of any change in any representation, warranty or other
      material information relating to Apollo set forth in this Subscription Agreement
      which takes place prior to the Closing Time.

     

    
      	10.0	
              MISCELLANEOUS

            

    

     

    10.1    Subject
      to Section 6, the Subscriber, on its own behalf and, if applicable, on behalf
      of
      others for whom it is contracting hereunder, agrees that this subscription
      for
      and offer to purchase the Offered Securities is made for valuable consideration
      and may not be withdrawn, cancelled, terminated or revoked by the Subscriber,
      on
      its own behalf and, if applicable, on behalf of others for whom it is
      contracting hereunder. 

     

    10.2    The
      Subscriber consents to the filing of such documents and any other documents
      as
      may be required to be filed with any stock exchange or securities regulatory
      authority in connection with the Private Placement.

     

    10.3    This
      Agreement, which includes any interest granted or right arising under this
      Agreement, may not be assigned or transferred.

     

    10.4    Except
      as
      expressly provided in this Agreement and in the agreements, instruments and
      other documents contemplated or provided for herein, this Agreement contains
      the
      entire agreement between the parties with respect to the Offered Securities
      and
      there are no other terms, conditions, representations or warranties whether
      expressed, implied, oral or written, by statute, by common law, by Apollo,
      or by
      anyone else.

     

    10.5    The
      parties may amend this Agreement only in writing.

     

    10.6    This
      Agreement enures to the benefit of and is binding upon the parties and, as
      the
      case may be, their respective heirs, executors, administrators and,
      successors.

    
      
        
          
          

        

        
          A-12

          
            

          

        

        
          
          

        

      

    

     

    10.7    A
      party
      will give all notices or other written communications to the other party
      concerning this Agreement by hand or by registered mail addressed to such other
      party’s respective address which is noted on the cover page of this
      Agreement.

     

    10.8    The
      parties hereto each covenant and agree to execute and deliver such further
      agreements, documents and writings and provide such further assurances as may
      be
      required by the parties to give effect to this Agreement and without limiting
      the generality of the foregoing to do all acts and things, execute and deliver
      all documents, agreements and writings and provide such assurances,
      undertakings, information and investment letters as may be required from time
      to
      time by all regulatory or governmental bodies or stock exchanges having
      jurisdiction over Apollo’s affairs or as may be required from time to time under
      the Applicable Securities Laws, including without limitation to the Toronto
      Stock Exchange and the American Stock Exchange.

     

    10.9    This
      Agreement may be executed in counterparts, each of which when delivered will
      be
      deemed to be an original and all of which together will constitute one and
      the
      same document and Apollo will be entitled to rely on delivery by facsimile
      machine of an executed copy of this Agreement, and acceptance by Apollo of
      such
      facsimile copy will be equally effective to create a valid and binding agreement
      between the Subscriber and Apollo as if Apollo had accepted the Agreement
      originally executed by the Subscriber.

     

    10.10    Each
      of
      the parties hereby acknowledges that it has consented and requested that all
      documents evidencing or relating in any way to the Offered Securities and this
      Agreement be drawn in the English language only. Les parties reconnaissent
      par
      les présentes avoir consenti et demandé que tous les documents faisant foi ou se
      rapportant de quelque manière aux bons de sousciciption spéciaux et soient
      rédigés en anglais seulement.

    
      
        
        

      

      
        A-13

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      "B"

    

    REGISTRATION
      RIGHTS AGREEMENT

    

     

    [to
      be
      inserted]

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    APPENDIX
      I

     

    UNITED
      STATES ACCREDITED INVESTOR CERTIFICATE

     

    (for
      Subscribers Resident in the United States)

     

    (TO
      BE COMPLETED BY U.S. PURCHASERS ONLY)

     

    
      	
              To:

            	
              Apollo
                Gold Corporation 

            

    

     

    Dear
      Sirs:

     

    This
      letter is given to you in connection with the attached Subscription Agreement
      (the "Subscription Agreement")
      for
      Debentures and Debenture Warrants ("Offered
      Securities")
      of
      Apollo Gold Corporation (the "Company").
      All
      terms defined in the Subscription Agreement and not otherwise defined herein
      are
      used herein as defined in the Subscription Agreement. In connection with its
      purchase of the Offered Securities of the Company, the undersigned represents,
      warrants and certifies to you that:

     

    (a)    the
      undersigned is duly authorized and empowered to enter into, execute and deliver
      and perform this Subscription Agreement and related documents, and the person
      executing and delivering this Subscription Agreement and the Appendices thereto
      on behalf of the undersigned is duly authorized and empowered to do so. This
      Subscription Agreement and related documents have been duly and validly
      executed, issued, and delivered and constitutes the legal, valid and binding
      obligations of the undersigned, enforceable in accordance with their
      terms.

     

    (b)    it
      (he or
      she, as applicable) is an "accredited investor" as that term is defined under
      Rule 501(a) under the Securities Act of 1933 ("U.S.
      Securities Act")
      for
      one or more of the following reasons (Please check one or more reasons, as
      applicable):

     

    
      	
              _______

            	
              (A)

            	
              If
                an individual, his/her individual net worth, or joint net worth with
                his/her spouse, at the time of this purchase exceeds
                US$1,000,000

            
	 	 	 
	
              _______

            	
              (B)

            	
              If
                an individual, he/she had an individual income in excess of US$200,000
                in
                each of the two most recent years or joint income with his/her 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

            
	 	 	 
	
              _______

            	
              (C)

            	
              If
                an individual, he/she is an executive officer or director of the
                Company

            
	 	 	 
	
              _______

            	
              (D)

            	
              It
                is an organization described in section 501(c)(3) of the U.S. Internal
                Revenue Code, corporation, Massachusetts or similar business trust,
                or
                partnership, not formed for the specific purpose of acquiring the
                securities offered, with total assets in excess of
                US$5,000,000

            
	 	 	 
	
              _______

            	
              (E)

            	
              It
                is a trust, with total assets in excess of US$5,000,000, not formed
                for
                the specific purpose of acquiring the securities offered, whose purchase
                is directed by a sophisticated person who, either alone or with his
                purchaser representative(s), has such knowledge, sophistication and
                experience in financial and business matters that he is capable of
                evaluating the merits and risks of the prospective investment (Please
                describe basis):

            
	 	 	 
	
              _______

            	
              (F)

            	
              It
                is a bank as defined in section 3(a)(2) of the U.S. Securities Act,
                or any
                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; a broker or dealer registered pursuant to section
                15
                of the U.S. Securities Exchange Act of 1934 ("Exchange Act"); an
                insurance
                company as defined in section 2(13) of the U.S. Securities Act; an
                investment company registered under the U.S. Investment Company Act
                of
                1940 or a business development company as defined in section 2(a)(48)
                of
                that Act; 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; 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; 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 U.S. $5,000,000
                or, if a self-directed plan, with investment decisions made solely
                by
                persons that are accredited
                investors

            

    

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

     

    
      	
              _______

            	
              (G)

            	
              It
                is a private business development company as defined in section 202(a)(22)
                of the U.S. Investment Advisers Act of 1940

            
	 	 	 
	
              _______

            	
              (H)

            	
              It
                is an entity in which all of the equity owners are accredited
                investors

            

    

     

    (c)    It
      is
      purchasing the Offered Securities for its own account and not with a view to
      any
      resale, distribution or other disposition of the Debentures, the Debenture
      Warrants or the Underlying Shares in any transaction that would be in violation
      of the securities laws of the United States or any state thereof;

     

    (d)    The
      undersigned was not formed for the specific purpose of acquiring the Offered
      Securities.

     

    (e)    The
      purchase of the Offered Securities has not been made through or as a result
      of,
      and the distribution of the Offered Securities is not being accompanied by,
      any
      general advertising or solicitation (as defined in Regulation D) in the United
      States, including, without limitation, any advertisement in printed public
      media, radio, television or telecommunications including electronic display
      such
      as the Internet, any general mailing, leaflet, public promotional meeting,
      newspaper or magazine article, radio or television advertisement, or any other
      form of general advertising or general solicitation in connection with the
      issuance. Prior to its consideration of the transactions contemplated hereby,
      the undersigned had a pre-existing personal or business relationship with either
      the Company or with a broker or agent (or a principal thereof) acting on behalf
      of the Company.

     

    (f)    No
      prospectus or "offering memorandum" has been delivered to the undersigned in
      connection with the purchase of the Offered Securities.

     

    (g)    In
      purchasing the Offered Securities, the undersigned has relied solely upon
      publicly available information relating to the Company and not upon any verbal
      or written representation as to any fact or otherwise made by or on behalf
      of
      the Company or any other person associated therewith. The undersigned, other
      than directors or officers of the Company, acknowledges that the decision to
      purchase the Offered Securities was made solely on the basis of publicly
      available information, and it is not purchasing the Offered Securities with
      knowledge of material information concerning the Company which has not been
      generally disclosed. The undersigned acknowledges that the Company has made
      available to the undersigned the opportunity to examine such additional
      documents from the Company and to ask questions of, and receive full answers
      from, the Company concerning, among other things, the Company, its financial
      condition, its management, its prior activities and any other information which
      the undersigned considers relevant or appropriate in connection with entering
      into this Agreement.

     

    (h)    The
      undersigned agrees that if it decides to offer, sell or otherwise transfer
      any
      of the Debenture, Debenture Warrants or Underlying Shares, it will not offer,
      sell or otherwise transfer any of such securities directly or indirectly,
      unless:

     

    
      	 	
              (i)

            	
              the
                sale is to the Company;

            

    

     

    
      	 	
              (ii)

            	
              the
                sale is made outside the United States in a transaction meeting the
                requirements of Rule 904 of Regulation S under the U.S. Securities
                Act
                ("Regulation
                S")
                (or such successor rule or regulation then in effect), if available,
                and
                in compliance with applicable state securities
                laws;

            

    

    
      
        
        

      

      
        I-2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              the
                sale is made pursuant to an exemption from the registration requirements
                under the U.S. Securities Act provided by Rule 144 thereunder, if
                available, and in accordance with any applicable state securities
                laws,
                and it has prior to such sale furnished to the Company an opinion
                of
                counsel to that effect reasonably satisfactory to the Company;
                or

            

    

     

    
      	 	
              (iv)

            	
              the
                sale is a transaction that does not require registration under the
                U.S.
                Securities Act or any applicable state securities laws, and it has
                prior
                to such sale furnished to the Company an opinion of counsel to that
                effect
                reasonably satisfactory to the Company;
                or

            

    

     

    
      	 	
              (v)

            	
              the
                sale is made pursuant to a registration statement that has been declared
                effective under the U.S. Securities Act with respect to the securities
                being sold.

            

    

     

    (i)    The
      Purchaser understands and acknowledges that upon the issuance thereof, the
      certificates representing the Debentures, the Debenture Warrants and the
      Underlying Shares, shall be restricted securities under United States and state
      securities laws, and until such securities cease to be restricted securities
      or
      sold in a transaction that allows for the removal of such legend from the
      certificate representing such securities in the hands of the transferee, such
      as
      pursuant to a resale pursuant to an effective registration statement or sale
      pursuant to Rule 144, such certificates shall bear, in addition to any legend(s)
      required by Canadian securities laws and policies, a legend:

     

    "THIS
      SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
      1933,
      AS AMENDED (THE " SECURITIES ACT"), AND ACCORDINGLY, MAY NOT BE OFFERED OR
      SOLD
      EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
      HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
      DEFINED IN RULE 144A ADOPTED UNDER THE SECURITIES ACT); (B) IT IS AN ACCREDITED
      INVESTOR (AS DEFINED IN REGULATION D UNDER THE SECURITIES ACT); OR (C) IT IS
      NOT
      A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN
      COMPLIANCE WITH REGULATIONS ADOPTED UNDER THE SECURITIES ACT; (2) AGREES THAT
      IT
      WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE
      COMMON SHARES ISSUABLE UPON EXERCISE OF SUCH SECURITY, EXCEPT, (A) TO THE ISSUER
      OR A SUBSIDIARY THEREOF; (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE
      WITH RULE 144A ADOPTED UNDER THE SECURITIES ACT (IF AVAILABLE); (C) TO PERSONS
      OTHER THAN U.S. PERSONS OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION
      S UNDER THE SECURITIES ACT; (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION
      PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES ACT OR ANOTHER AVAILABLE
      EXEMPTION UNDER THE SECURITIES ACT (IF AVAILABLE); OR (E) PURSUANT TO AN
      EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT, AND (3) AGREES THAT IT WILL,
      PRIOR TO ANY TRANSFER OF THIS SECURITY, FURNISH TO THE ISSUER SUCH
      CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED TO
      CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR
      IN A
      TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OR THE SECURITIES
      ACT.
      AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION”, “UNITED STATES” AND “U.S.
      PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATIONS UNDER THE SECURITIES ACT.
      IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN
      ANY
      HEDGING TRANSACTION WITH REGARD TO THIS SECURITY OR ANY COMMON SHARES ISSUABLE
      UPON EXERCISE OF SUCH SECURITY, EXCEPT AS PERMITTED BY THE SECURITIES
      ACT."

    

    and
      that,
      in addition to the foregoing legend, the certificates representing the
      Underlying Shares, if issued prior to such time as the restrictive period is
      no
      longer required under applicable requirements of the U.S. Securities Act or
      applicable state securities laws, shall bear, in addition to any legend(s)
      required by Canadian securities laws and policies, the following
      legend:

      
        
          
          

        

        
          I-3

          
            

          

        

        
          
          

        

      

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK
      EXCHANGE; HOWEVER, THE SAID SECURITIES CAN NOT BE TRADED THROUGH THE FACILITIES
      OF SUCH EXCHANGE SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY
      CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT "GOOD DELIVERY" IN SETTLEMENT
      OF
      TRANSACTIONS ON THE TORONTO STOCK EXCHANGE."

     

    (j)    Each
      of
      its covenants, agreements, representations, and warranties contained in the
      Subscription Agreement is true and correct and is incorporated
      herein.

     

    (k)    It
      is
      fully aware of the Company’s current and proposed business and prospects, has
      reviewed the Company’s public filings, and the undersigned has had a sufficient
      opportunity to ask questions of the Company’s executive officers and review all
      material concerning the Company that it deems necessary in order to make an
      informed investment decision to acquire the securities.

     

    (l)    It
      acknowledges that the Debenture, Debenture Warrants and the Underlying Shares
      have not been registered under the U.S. Securities Act or applicable state
      securities laws on the ground that the sale of the securities to the undersigned
      is exempt from registration thereunder. The undersigned further acknowledges
      that the Company’s reliance on such exemptions is, in part, based upon the
      representations, warranties, confirmations and statements of the undersigned
      in
      this Appendix II and the Subscription Agreement and that the residence and
      principal office of the undersigned is at the location listed on the signature
      page to the Subscription Agreement. The undersigned hereby agrees to indemnify
      the Company, the Agent, the U.S. Affiliate (if any), their directors, officers
      and agents from and against all losses, claims, costs, expenses, damages and
      liabilities which they may incur or suffer caused by prior reliance
      thereon.

     

    (m)    It
      is
      fully aware that the Registration Statement (if it is declared effective by
      the
      SEC) will only cover the resale of the Underlying Shares and will not include
      any of the Offered Securities.

     

    (n)    It
      (i) is
      able to bear the economic risk of its investment in the Debentures, the
      Debenture Warrants and the Underlying Shares, (ii) is able to hold the
      Debentures, the Debenture Warrants and the Underlying Shares for an indefinite
      period of time, (iii) can afford a complete loss of its investment in the
      Debentures, the Debenture Warrants and the Underlying Shares and (iv) has
      adequate means of providing for its current needs.

     

    (o)
      All
      of
      the information, representations, warranties, covenants, confirmations, and
      statements provided by or on behalf of the undersigned in the Subscription
      Agreement and in this Appendix shall survive the closing of the offering of
      the
      Offered Securities.

     

    Dated
      as
      of the __________ day of ___________, 2007.

    
      	 	
            
	
              
                

              

              Name
                of Purchaser

            
	
               

              
                

              

              Name:

            
	Title:

    

     

    
      
        
        

      

        I-4

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