Document:

Unassociated Document

     

    EXHIBIT 4.5

     

    APOLLO GOLD
CORPORATION

    SUBSCRIPTION AGREEMENT FOR FLOW-THROUGH
SHARES

    
      
         

        
          
            	
                    TO:

                  	
                    APOLLO GOLD
      CORPORATION

                  

          

          
            	
                    AND TO:

                  	
                    HAYWOOD SECURITIES INC. (THE
      "UNDERWRITER")

                  

          

        

      

       

    

    The undersigned (the "Subscriber") hereby irrevocably subscribes for and
offers to purchase from Apollo Gold Corporation (the "Corporation") that number of Flow-Through Shares
(as hereinafter defined) specified below at a price of $0.54 per Flow-Through
Share.  The Subscriber agrees to be bound by the terms and conditions
set forth in the attached "Terms and Conditions of Subscription for Flow-Through
Shares" and acknowledges that the Corporation and the Underwriter, and their
respective counsel, are relying upon the representations, warranties and
covenants of the Subscriber set forth therein and in the schedules thereto. The
purchase and sale of the Flow-Through Shares hereunder is being made
concurrently with offerings (collectively with the sales hereunder,
"Offering") of Flow-Through Shares and Common
Shares (as hereinafter defined) (collectively, the "Offered
Securities") that the
Underwriter has agreed to purchase or to arrange for substitute purchasers
consisting of: (i) 13,888,889 Flow-Through Shares; and (ii) 5,555,556 Common
Shares at a price of $0.45 per Common Share.  The Offering may be
amended by written mutual consent of the Corporation and the Underwriter such
that the aggregate gross proceeds from the sale of the Flow-Through Shares and
Common Shares, on the same terms and conditions as the Offering (including the
sale price thereof), are increased to up to $13,000,000.

     

    SUBSCRIPTION AND SUBSCRIBER
INFORMATION

     

    Please print ALL information (other than signatures), as
applicable, in the space provided below 

      
        	          
      	
                 (Name of
      Subscriber):

              	 	
                 Number of Common
      Shares:

              	 	
                x
  $0.54

              

      

      
        	 	 	 	 
	 	 	 	 
	 	 	 	 

      

      
        	 	
                 Account Reference (if
      applicable):

              	 	 	
                =

              	 
	          
      	 	 	 Aggregate
      Subscription Price:  	 	 

      

      
        	          
      	 By:	 	 	
                (the "Subscription
      Price")

              	 
	 	 	Authorized
      Signature	 

      

      
        	 	 (Official
      Capacity or Title – if the Subscriber is not an
      individual)	

                If the Subscriber is signing as
      agent for a principal (beneficial purchaser) and is not purchasing as
      trustee or agent for accounts fully managed by it, complete the
      following:

              
	 	 (Name of individual whose
      signature appears above if different than the name of the subscriber
      printed above.)	 (Name of
      Principal)	 
	 	 	 	 
	 	

                 (Subscriber's Address,
      including Municipality and Province)

              	 (Principal's
      Address)	 
	 	 	 	 
	 	 	 	 
	 	

                 S.I.N. or Taxation Account
      of Subscriber

              	 	 
	 	 	 	 
	 	 (Telephone
      Number)                                             	(Email
      Address)	 	 
	 	 Account Registration
      Information:	 	 Delivery Instructions as set
      forth below:	 
	 	 	 	 
	 	 (Name)	 	 (Name)	 
	 	 	 	 	 
	 	 	 (Account Reference, if
      applicable)	 
	 	 (Address, including Zip
      Code)	 	

                 (Address, including Postal
      Code)

              	 
	 	 	 	 
	 	 (Account Reference, if
      applicable)	 (Contact
      Name)                                                  	(Telephone
  Number)
	 	 Number and kind of securities of
      the Corporation held, directly or indirectly, if
    any:	 	 1.  State whether
      Subscriber is an Insider (as such term is hereinafter defined) of the
      Corporation:
	 	 	 	 Yes                       ̈                     No                       ̈

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 

                INSTRUCTIONS
      FOR SUBSCRIBERS

                 

                The Subscriber
      must:

                 

                (1)           Read this Subscription
      Agreement;

                 

                (2)           Complete and execute the face page
      of this Subscription Agreement;

                 

                (3)           Read and complete the Certificate
      set out in Schedule "A";

                 

                (4)           Read and complete the Registration
      Rights Agreement set out in Schedule "C";

                 

                (5)           Make payment for the Subscribed
      Shares as required by the Terms and Conditions; and

                 

                (5)           Deliver the signed documents as
      required by the Terms and Conditions.

                 

              

      

       

      

       

       

      * * * * *

       

    

     

    ACCEPTANCE:  The Corporation hereby (i)
accepts the above subscription subject to the terms and conditions contained in
this Subscription Agreement; (ii) represents and warrants to the Subscriber that
the representations and warranties made by the Corporation to the Underwriter in
the Underwriting Agreement (as defined herein), which are incorporated by
reference in this Subscription Agreement, are true and correct as of the date of
the Underwriting Agreement (except as waived by the Underwriter); and (iii)
agrees that the Subscriber is entitled to rely, subject to the limitations and
other terms of the Underwriting Agreement, on the representations and warranties
made by the Corporation to the Underwriter (except as waived by the Underwriter)
and on the covenants made by the Corporation (except as waived or modified by
the Underwriter) in the Underwriting Agreement, each of which are incorporated
by reference in this Subscription Agreement.

    
       

      
        
          	
                  APOLLO GOLD CORPORATION

                	 
      	 
	 	 	 
	Per:	 
    	
                  Date:

                	  
      

        

        

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

      

    

     

    TERMS AND CONDITIONS OF SUBSCRIPTION
FOR

    FLOW-THROUGH SHARES

     

    ARTICLE
1                                INTERPRETATION

     

    
      	
              1.1

            	
              Definitions

            

    

     

    (a)           Whenever used in this Subscription
Agreement, unless there is something in the subject matter or context
inconsistent therewith, the following words and phrases shall have the
respective meanings ascribed to them as follows:

     

    "affiliate" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "Business
Day" means a day other than
a Saturday, Sunday or any other day on which the principal chartered banks
located in Toronto are not open for business.

     

    "Canadian Exploration
Expense" or "CEE" means Canadian exploration expense
as described in paragraphs
(a), (d), (f) or (g.1) of the definition of Canadian exploration expense in
subsection 66.1(6) of the Tax Act or that would be described in paragraph
(h) of such definition if the reference therein to "paragraphs (a) to (d) and
(f) to (g.1)" were a reference to paragraphs (a), (d), (f) and (g.1), excluding
expenses that are "Canadian exploration and development overhead expenses" (as
defined in the regulations to the Tax Act for purposes of paragraph 66(12.6)(b) of
the Tax Act) of the Corporation or amounts which
constitute specified expenses for seismic data described in paragraph
66(12.6)(b.1) of the Tax
Act or any expenses for prepaid services or
rent that do not qualify as outlays and expenses for the period as described in
the definition of "expense" in subsection 66(15).

     

    "Closing" shall have the meaning ascribed to
such term in Section 4.1.

     

    "Closing
Date" shall have the
meaning ascribed to such term in Section 4.1.

     

    "Closing
Time" shall have the
meaning ascribed to such term in Section 4.1.

     

    "Common
Shares" means common shares
in the capital of the Corporation.

     

    "Compensation
Options" has the meaning
ascribed in Section 8.1.

     

    "Control
Person" means a person,
company or combination of persons or companies described in clause (c) of the
definition of "distribution" in subsection 1(1) of the Securities
Act
(Ontario).

     

    "Corporation" means Apollo Gold Corporation and
includes any successor corporation to or of the Corporation.

     

    "CRA" means the Canada Revenue
Agency.

     

    "distribution" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "Edgar" means the SEC's Electronic Data,
Gathering, Analysis and Retrieval System, or any successor system
thereto.

     

    "Flow-Through
Shares" means Common Shares
in the capital of the Corporation being issued which qualify as "flow-through
shares" as defined in subsection 66(15) of the Tax Act.

     

    "Insider" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "NYSE AMEX" means NYSE Amex
LLC.

     

    
      
        
        

      

      
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    "NYSE AMEX
Approval" means the
approval of the listing by the NYSE AMEX of the Flow-Through Shares and Common
Shares sold in the Offering and issuable upon exercise of the Compensation
Options.

     

    "Offered
Securities" shall have the
meaning ascribed to such term on the face page of this Subscription
Agreement.

     

    "Offering" shall have the meaning ascribed to
such term on the face page of this Subscription Agreement.

     

    "Person" means any individual (whether acting
as an executor, trustee, administrator, legal representative or otherwise),
corporation, firm, partnership, sole proprietorship, syndicate, joint venture,
trustee, trust, unincorporated organization or association, and pronouns have a
similar extended meaning.

     

    "Prescribed
Forms" means the forms
prescribed from time to time under subsection 66(12.7) of the Tax Act and under
the applicable provision of the Quebec Tax Act as described in paragraph 1.1(b)
hereof filed or to be filed by the Corporation within the prescribed times
renouncing to the Subscriber the Resource Expenses incurred pursuant to this
Subscription Agreement and all parts or copies of such forms required by the CRA
and under the applicable provision of the Quebec Tax Act as described in
paragraph 1.1(b) hereof to be delivered to the Subscriber.

     

    "Prescribed
Relationship" means a
relationship between the Corporation and the Subscriber (including any
beneficial purchaser for whom the Subscriber acts) as described in subsection
66(12.671) of the Tax Act, or where the Subscriber and the Corporation are
related or otherwise do not deal at arm's length for purposes of the Tax
Act.

     

    "Proposed
Amendments" means the draft
legislation to amend the Tax Act and regulations thereto released by the
Minister of Finance (Canada) on December 20, 2002 and November 9,
2006.

     

    "Public
Record" means, without
limitation, the prospectuses, annual information forms, annual and quarterly
reports, offering memoranda, material change reports, press releases and any
other documents or reports filed by the Corporation with Securities Regulators
during the 24 months preceding the date hereof and which are available on SEDAR
or Edgar.

     

    "Quebec Tax
Act" means the Taxation
Act (Québec) and all rules
and regulations made pursuant thereto, all as may be amended, re-enacted or
replaced from time to time and any proposed amendments thereto announced
publicly from time to time.

     

    "Registration Rights
Agreement" means the Registration Rights Agreement
attached hereto as Schedule "C".

     

    "Registration
Statement" means the registration statement that
the Corporation agrees to file with the SEC pursuant to the Registration Rights
Agreement to register the Flow-Through Shares sold in the Offering for resale
pursuant to the terms of the Registration Rights Agreement.

     

    "Resource
Expense" means an expense
which is CEE, which is incurred on or after the Closing Date and on or before
the Termination Date, which may be renounced by the Corporation as CEE pursuant
to subsection 66(12.6) of the Tax Act in accordance with subsection 66(12.66) of
the Tax Act with an effective date not later than December 31, 2009 and in
respect of which, but for the renunciation, the Corporation would be entitled to
a deduction in computing income for the purposes of the Tax
Act.

     

    "Rights
Agreement" means the
shareholders rights plan agreement dated as of the 17th day of January, 2007 between the
Corporation and CIBC Mellon Trust Company, as rights agent.

     

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

     

    "Securities
Laws" means, in respect of
the Offering, the securities laws, regulations and exchange rules having
application thereto and the rules, policies, notices and orders issued by the
Securities Regulators having application thereto, the securities laws of the
United States and the states thereof, and the respective regulations and rules
made and forms prescribed thereunder together with all applicable published
policy statements and blanket orders and rulings of the applicable securities
commissions in Canada, the SEC and all other applicable Securities Regulators
including the rules of the TSX and AMEX.

     

    
      
        
        

      

      
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    "Securities
Regulators" means the securities commissions or
other securities regulatory authorities of the United States and all the Selling
Jurisdictions or the relevant Selling Jurisdiction as the context
requires.

     

    "SEDAR" means the computer system for the
transmission, receipt, acceptance, review and dissemination of documents filed
in electronic format known as the System for Electronic Document Analysis and
Retrieval, which is available online at www.sedar.com

     

    "Selling
Jurisdictions" means each
of the provinces of Canada and/or in other jurisdictions agreed to by the
Corporation and the Underwriter in which the Subscribers are
resident.

     

    "Subscriber" means the subscriber for Flow-Through
Shares as set out on the face page of this Subscription Agreement or, in the
case of a subscription for a beneficial owner, the beneficial
owner.

     

    "Subscribed
Shares" means the number of
Flow-Through Shares set out on the face page of this Subscription
Agreement.

     

    "Subscription
Agreement" means this
subscription agreement (including any schedules hereto) and any instrument
amending this Subscription Agreement; "hereof", "hereto", "hereunder", "herein" and similar expressions mean and refer
to this Subscription Agreement and not to a particular Article or Section; and
the expression "Article" or "Section" followed by a number means and refers
to the specified Article or Section of this Subscription
Agreement.

     

    "Subscription
Price" shall have the
meaning ascribed to such term on the face page of this Subscription
Agreement.

     

    "Tax Act" means the Income Tax
Act (Canada), as amended,
re-enacted or replaced from time to time.

     

    "Term
Sheet" means the term sheet
delivered to potential purchasers of Flow-Through Shares, a copy of which is
attached hereto as Schedule "B".

     

    "Termination
Date" means December 31,
2010.

     

    "TSX" means the Toronto Stock
Exchange.

     

    "TSX
Approval" means the
conditional approval of the Offering by the TSX.

     

    "Underwriter" means Haywood Securities
Inc.

     

    "Underwriting
Agreement" means the
underwriting agreement to be entered into between the Underwriter and the
Corporation in respect of the Offering.

     

    "United
States" means the United
States of America, its territories and possessions, any State of the United
States and the District of Columbia.

     

    "U.S.
Person" shall have the
meaning ascribed to such term in Rule 902(k) of Regulation S under the
U.S.
Securities Act.

     

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

     

    (b)           Any reference to a word or term defined
in the Tax Act shall include, for purposes of Québec income taxation, a
reference to the equivalent word or term, where applicable, defined in the
Quebec Tax Act.  Any reference to the Tax Act or a provision thereof
shall include, for purposes of Québec income taxation, a reference to the Quebec
Tax Act or the equivalent provision thereof, where applicable.  Any
reference to a filing or similar requirement imposed under the Tax Act shall
include, for purposes of Québec income taxation, a reference to the equivalent
filing or similar requirement, where applicable, under the Quebec Tax Act,
provided that, if no filing or similar requirement is provided under the Quebec
Tax Act, a copy of any material filed under the Tax Act shall be filed with the
Ministère du Revenu du Québec.

     

    
      
        
        

      

      
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              1.2

            	
              Gender and
      Number

            

    

     

    Words importing the singular number only
shall include the plural and vice versa, words importing the masculine gender
shall include the feminine gender and words importing persons shall include
firms and corporations and vice versa.

     

    
      	
              1.3

            	
              Currency

            

    

     

    Unless otherwise specified, all dollar
amounts in this Subscription Agreement, including the symbol "$", are expressed
in Canadian dollars.

     

    
      	
              1.4

            	
              Subdivisions, Headings and Table
      of Contents

            

    

     

    The division of this Subscription
Agreement into Articles, Sections, Schedules and other subdivisions, the
inclusion of headings and the provision of a table of contents are for
convenience of reference only and shall not affect the construction or
interpretation of this Subscription Agreement.  The headings in this
Subscription Agreement are not intended to be full or precise descriptions of
the text to which they refer.  Unless something in the subject matter
or context is inconsistent therewith, references herein to an Article, Section,
Subsection, paragraph, clause or Schedule are to the applicable article,
section, subsection, paragraph, clause or schedule of this Subscription
Agreement.

     

    ARTICLE
2                                SCHEDULES

     

    
      	
              2.1

            	
              Description of
      Schedules

            

    

     

    The following are the Schedules attached
to and incorporated in this Subscription Agreement by reference and deemed to be
a part hereof:

     

    
      	
              Schedule
"A"

            	
              -

            	
              Certificate of Accredited
      Investor

            
	 	 	 
	
              Schedule
"B"

            	
              -

            	
              Term
  Sheet

            
	 	 	 
	
              Schedule
"C"

            	
              -

            	
              Registration Rights
      Agreement

            

    

     

    ARTICLE
3                                SUBSCRIPTION AND DESCRIPTION OF
FLOW-THROUGH SHARES

     

    
      	
              3.1

            	
              Subscription for Flow-Through
      Shares

            

    

     

    The Subscriber hereby confirms its
irrevocable subscription for and offer to purchase the Subscribed Shares from
the Corporation, and hereby tenders the Subscription Price, which, upon
acceptance by the Corporation, will constitute a binding agreement of the
Subscriber with the Corporation to purchase from the Corporation, and, on the
part of the Corporation, to sell to the Subscriber, the Subscribed Shares, on
and subject to the terms and conditions set out in this Subscription Agreement,
for the Subscription Price which is payable as described in Article 4
hereto.

     

    In accordance with the Underwriting
Agreement, and subject to the terms and conditions contained in this
Subscription Agreement, upon acceptance by the Corporation of this subscription
(in whole or in part) the Subscriber will be obliged to purchase from the
Corporation the number of Subscribed Shares in respect of which this
subscription has been accepted, which will be in substitution of the
Underwriter's obligation to purchase such Subscribed Shares.  The
Subscriber acknowledges and agrees that no consideration is being paid hereunder
in respect of any rights issuable under the Rights Plan.

     

    
      
        
        

      

      
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              3.2

            	
              Description of Flow-Through
      Shares

            

    

     

    Upon issue, the Flow-Through Shares will
be "flow-through shares" as defined in subsection 66(15) of the Tax Act and are
not and will not be "prescribed shares" within the meaning of section 6202.1 of
the regulations to the Tax Act. The Corporation agrees to:

     

    (a)           incur Resource Expenses in an amount
equal to the Subscription Price during the period from and after the Closing
Date to and including the Termination Date; and

     

    (b)           renounce Resource Expenses equal to the
Subscription Price to the Subscriber with an effective date of renunciation no
later than December 31, 2009.

     

    
      	
              3.3

            	
              Acceptance and Rejection of
      Subscription by the
Corporation

            

    

     

    The Corporation shall forward to the
Subscriber confirmation of acceptance or rejection (in whole or in part) of this
Subscription Agreement promptly after the acceptance or rejection of this
Subscription Agreement by the Corporation.  The Subscriber
acknowledges and agrees that, notwithstanding Section 3.1 above, the Corporation
reserves the right, in its absolute discretion, to reject this subscription for
Flow-Through Shares, in whole or in part, at any time prior to the Closing Time.
If this subscription is rejected in whole, any cheques or other forms of payment
delivered to the Underwriter on account of the Subscription Price will be
promptly returned to the Subscriber without interest or deduction. If this
subscription is accepted only in part, a cheque representing any refund of the
Subscription Price for that portion of the subscription for Flow-Through Shares
which is not accepted will be promptly delivered to the Subscriber without
interest or deduction.

     

    
      	
              3.4

            	
              Payment

            

    

     

    The Subscriber shall deliver the
aggregate amount payable in respect of the Subscribed Shares to the Underwriter
at or before the Closing Time on the Closing Date by certified cheque or bank
draft drawn on a Canadian chartered bank or trust company in immediately
available and freely transferable Canadian funds and payable to "Haywood
Securities Inc." or by wire transfer or other arrangements acceptable to the
Underwriter. Such funds shall be held in escrow (without interest) by the
Underwriter pending the Closing.

     

    ARTICLE
4                                CLOSING

     

    
      	
              4.1

            	
              Closing

            

    

     

    Delivery and sale of the Subscribed
Shares and payment of the Subscription Price will be completed (the
"Closing") at the offices of the Corporation's
Canadian counsel, at 1:00 p.m. (Toronto time) (the "Closing
Time") on July 15, 2009 or
such other place or date or time as the Corporation and the Underwriter may
mutually agree (the "Closing
Date").  Subject
to Section 3.3, if, prior to the Closing Time, the terms and conditions
contained in this Subscription Agreement and the Underwriting Agreement have
been complied with to the satisfaction of the Underwriter, or waived by the
Underwriter, the Underwriter shall deliver to the Corporation completed
Subscription Agreements from the Subscribers (or, if the Underwriter does not
have substituted purchasers for any portion of the Offering, from the
Underwriter) and payment of the Subscription Price against delivery by the
Corporation of certificates representing the Subscribed Shares and such other
documentation as may be required pursuant to the Subscription Agreement and the
Underwriting  Agreement.

     

    If, prior to the Closing Time, the terms
and conditions contained in this Subscription Agreement and the Underwriting
Agreement have not been complied with to the satisfaction of the Underwriter, or
waived by it (other than delivery by the Corporation to the Subscriber of a
certificate representing the Subscribed Shares), the Underwriter, the
Corporation and the Subscriber will have no further obligations under this
Subscription Agreement.

     

    
      
        
        

      

      
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              4.2

            	
              Conditions of
      Closing

            

    

     

    The completion of the Offering is
conditional upon, among other things, the Corporation obtaining TSX Approval and
NYSE AMEX Approval prior to the Closing Date and satisfactory due diligence by
the Underwriter in respect of the business and affairs of the
Corporation.

     

    The Subscriber acknowledges and agrees
that as the sale of the Flow-Through Shares will not be qualified by a
prospectus in Canada or registered in the United States, such sale and issuance
is subject to the condition that the Subscriber return to the Corporation and/or
the Underwriter all documentation required by the Securities
Laws.  The Subscriber acknowledges and agrees that the Underwriter
and/or the Corporation may provide the Securities Regulators and tax authorities
with a list setting forth the identities of the beneficial purchasers of the
Flow-Through Shares.  Notwithstanding that the Subscriber may be
purchasing Flow-Through Shares as agent on behalf of an undisclosed principal,
the Subscriber agrees to provide, on request, particulars as to the identity of
such undisclosed principal as may be required by the Corporation in order to
comply with the foregoing.

     

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

     

    (a)           unless other arrangements acceptable to
the Underwriter have been made, payment by the Subscriber of the Subscription
Price as set out in Section 3.3;

     

    (b)           the Subscriber having properly
completed, signed and delivered this Subscription Agreement
to:

     

    
      	
              Haywood Securities
      Inc.

              Suite 2000 - 400 Burrard
      Street

              Vancouver, B.C.
      V6C 3A6

              Attention: Michelle
      Jankovich

              Facsimile:
      604-697-7498

            

    

     

    (c)           the Subscriber having properly
completed, signed and delivered Schedule "A" hereto.

     

    
      	
              4.3

            	
              Authorization of the
      Underwriter

            

    

     

    The Subscriber irrevocably authorizes
the Underwriter, in its discretion, to act as the Subscriber's representative at
the Closing, and hereby appoints the Underwriter, with full power of
substitution, as its true and lawful attorney with full power and authority in
the Subscriber's place and stead:

     

    (a)           to receive one or more certificates
representing the Subscribed Shares, to execute in the Subscriber's name and on
its behalf all closing receipts and required documents, to complete and correct
any errors or omissions in any form or document provided by the Subscriber in
connection with the subscription for the Subscribed Shares and to exercise any
rights of termination contained in the Underwriting
Agreement;

     

    (b)           to extend such time periods and to
waive, in whole or in part, any representations, warranties, covenants or
conditions for the Subscriber's benefit contained in this Subscription Agreement
and the Underwriting Agreement or any ancillary or related document;
and

     

    (c)           to terminate this Subscription Agreement
if any condition precedent is not satisfied, in such manner and on such terms
and conditions as the Underwriter in its sole discretion may
determine.

     

    The Subscriber acknowledges and agrees
that the Underwriter and the Corporation may vary, amend, alter or waive, in
whole or in part, one or more of the terms to be set forth in the Underwriting
Agreement in such manner and on such terms and conditions as they may determine,
and that any such variation, amendment, alteration or waiver shall not affect in
any way the obligations of the Subscriber or such others for whom the Subscriber
is contracting hereunder.

     

    
      
        
        

      

      
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    ARTICLE
5                                REPRESENTATIONS AND WARRANTIES OF THE
CORPORATION

     

    
      	
              5.1

            	
              Representations, Warranties and
      Covenants of the Corporation

            

    

     

    By execution of this Subscription
Agreement, the Corporation hereby agrees with the Subscriber that the Subscriber
shall have the benefit of the representations and warranties made by the
Corporation below and to the Underwriter as set forth in the Underwriting
Agreement, and acknowledges that the Subscriber is relying on such
representations and warranties in connection with the transactions contemplated
herein.  Such representations and warranties shall continue in full
force and effect for the benefit of the Subscriber in accordance with the
Underwriting Agreement.

     

    The Corporation represents and warrants
to, and covenants with, the Subscriber as follows:

     

    (a)           Upon issue, the Flow-Through Shares will
be "Flow-Through Shares" as defined in subsection 66(15) of the Tax Act and the
Proposed Amendments and are not and will not be "prescribed shares" within the
meaning of section 6202.1 of the regulations to the Tax Act. The Corporation
does not have and will not have prior to the Termination Date a Prescribed
Relationship with the Subscriber and if the Subscriber is a partnership, with a
partner or limited partner of such partnership.

     

    (b)           The Corporation is a "principal-business
corporation" as defined in subsection 66(15) of the Tax Act and will continue to
be a "principal-business corporation" until such time as all of the Resource
Expenses required to be renounced under this Subscription Agreement have been
incurred and validly renounced pursuant to the Tax Act.

     

    (c)           The Corporation has no reason to believe
that it will be unable to: (i) incur, on or after the Closing Date and on or
before the Termination Date, or (ii) renounce to the Subscriber effective on or
before December 31, 2009, Resource Expenses in an aggregate amount equal to the
Subscription Price, and the Corporation has no reason to expect any reduction of
such amount by virtue of subsection 66(12.73) of the Tax
Act.

     

    (d)           The Corporation hereby agrees to incur
Resource Expenses in an amount equal to the Subscription Price on or before the
Termination Date in accordance with this Subscription Agreement and agrees to
renounce to the Subscriber, on or before March 31, 2010 with an effective date
no later than December 31, 2009, pursuant to subsections 66(12.6) and 66(12.66)
of the Tax Act, Resource Expenses incurred or to be incurred on or before the
Termination Date in an amount equal to the Subscription
Price.

     

    (e)           The Corporation shall deliver to the
Subscriber, on or before March 31, 2010, the relevant Prescribed Forms, fully
completed and executed, renouncing to the Subscriber, Resource Expenses in an
amount equal to the Subscription Price with an effective date of no later than
December 31, 2009, such delivery constituting the authorization of the
Corporation to the Subscriber to file such Prescribed Forms with the relevant
taxation authorities.

     

    (f)           The Resource Expenses to be renounced by
the Corporation to the Subscriber:

     

    (i)           will constitute CEE on the effective
date of the renunciation;

     

    (ii)           will not include expenses that are
"Canadian exploration and development overhead expenses" (as defined in the
regulations to the Tax Act for purposes of paragraph 66(12.6)(b) of the Tax Act)
of the Corporation, the amount of any assistance described in paragraph
66(12.6)(a) of the Tax Act, amounts which constitute specified expenses for
seismic data described in paragraph 66(12.6)(b.1) of the Tax Act or any expenses
for prepaid services or rent that do not qualify as outlays and expenses for the
period as described in the definition of "expense" in subsection 66(15) of the
Tax Act;

     

    (iii)           will not include any amount that has
previously been renounced by the Corporation to the Subscriber or to any other
Person;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (iv)           would be deductible by the Corporation
in computing its income for the purposes of Part I of the Tax Act but for the
renunciation to the Subscriber; and

     

    (v)           will not be subject to any reduction
under subsection 66(12.73) of the Tax Act.

     

    (g)           The Corporation shall not reduce the
amount renounced to the Subscriber pursuant to subsection 66(12.6) of the Tax
Act.

     

    (h)           The Corporation shall not be subject to
the provisions of subsection 66(12.67) of the Tax Act in a manner which impairs
its ability to renounce Resource Expenses to the Subscriber in an amount equal
to the Subscription Price.

     

    (i)           The Corporation acknowledges that it is
not now entitled to receive any assistance, as defined in the Tax Act, in
respect of the Resource Expenses.  If the Corporation receives, or
becomes entitled to receive, any government assistance which is described in
paragraph (a) of the definition of "excluded obligation" in subsection 6202.1(5)
of the regulations made under the Tax Act and the receipt of or entitlement to
receive such government assistance has or will have the effect of reducing the
amount of CEE validly renounced to the Subscriber hereunder to less than the
aggregate of the Subscription Price, the Corporation shall incur additional
Resource Expenses on or before the time it renounces the Resource Expenses to
the Subscriber pursuant to their Subscription Agreement in an amount sufficient
to allow it to renounce to the Subscriber, the Subscription
Price.

     

    (j)           The Corporation shall use the gross
proceeds of the Offering for general exploration activities on the Corporation's
properties and shall deliver to the Subscriber, on or before March 31, 2010, a
list of the provinces, territories or other jurisdictions in Canada where the
Corporation has incurred, or intends to incur, Resource Expenses together with
the amount incurred in each such province, territory or other jurisdiction of
Canada.

     

    (k)           The Corporation shall file with the CRA,
and, if applicable, with the appropriate authorities in the Province of Québec,
within the time prescribed by subsection 66(12.68) of the Tax Act and the
applicable provisions of the Quebec Tax Act (i) the forms prescribed for the
purposes of such legislation, together with a copy of this Subscription
Agreement and shall forthwith following such filings provide to the Subscriber a
copy of such forms; and (ii) the form prescribed for purposes of subsection
66(12.7) of the Tax Act on or before the last day of the first month after each
month in which any renunciation is made pursuant to the terms of this
Subscription Agreement.

     

    (l)           The Corporation will keep proper books,
records and accounts in respect of all Resource Expenses and all transactions
and events affecting the Subscription Price, the Resource Expenses and the
amounts renounced to the Subscriber hereunder, and upon reasonable notice, will,
on a timely basis, make such books, records, accounts and any other relevant
documents available for inspection and audit by or on behalf of the
Subscriber.

     

    (m)           Neither the Corporation nor any
corporation "associated" (as such term is defined in the Tax Act) with the
Corporation is a party to any other agreement for the issuance of Flow-Through
Shares for which the required expenditures have not been
incurred.

     

    (n)           The Corporation has not and will not
enter into transactions or take deductions which would otherwise reduce its
cumulative CEE to an extent which would preclude a renunciation of Resource
Expenses hereunder in an amount equal to the Subscription Price on or before
December 31, 2009.

     

    (o)           The Corporation will file with the CRA,
before March 31 of the year following a particular year, any return required to
be filed under Part XII.6 of the Tax Act in respect of the particular year, and
will pay any tax or other amount owing in respect of that return on a timely
basis.

     

    (p)           If the Corporation amalgamates with any
one or more companies, any shares issued to or held by the Subscriber as a
replacement for the Flow-Through Shares as a result of such amalgamation will
qualify, by virtue of subsection 87(4.4) of the Tax Act, as Flow-Through Shares
and in particular will not be "prescribed shares" as defined in section 6202.1
of the regulations to the Tax Act.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              5.2

            	
              Indemnification

            

    

     

    If the Corporation does not incur and
renounce to the Subscriber, effective on or before December 31, 2009, Resource
Expenses equal to the Subscription Price, the Corporation shall indemnify and
hold harmless the Subscriber and each of the partners thereof if the Subscriber
is a partnership or a limited partnership (for the purposes of this paragraph,
each an "Indemnified
Person") as to, and pay in
settlement thereof to the Indemnified Person on or before the twentieth Business
Day following the Termination Date, as sole recourse to the Indemnified Person,
an amount equal to the amount of any tax (within the meaning of paragraph (b) of
the definition of "excluded obligation" in subsection 6202.1(5) of the
regulations to the Tax Act or paragraph (c) of that definition pursuant to the
Proposed Amendments) payable under the Tax Act (and under any corresponding
provincial legislation) by any Indemnified Person as a consequence of such
failure.  In the event that the CRA (or any similar provincial tax
authority) reduces the amount renounced by the Corporation to the Subscriber
pursuant to subsection 66(12.73) of the Tax Act (or any corresponding provincial
legislation), the Corporation shall indemnify and hold harmless each Indemnified
Person as to, and pay in settlement thereof to the Indemnified Person an amount
equal to the amount of any tax (within the meaning of paragraph (b) of the
definition of "excluded obligation" in subsection 6202.1(5) of the regulations
to the Tax Act or paragraph (c) of that definition pursuant to the Proposed
Amendments) payable under the Tax Act (and under any corresponding provincial
legislation) by the Indemnified Person as a consequence of such reduction
provided that nothing in this paragraph shall derogate from any rights or
remedies the Subscriber may have at common law with respect to liabilities other
than those payable under the Tax Act and any corresponding provincial
legislation. For certainty, the foregoing indemnity shall have no force or
effect and the Subscriber shall not have any recourse or rights of action to the
extent that such indemnity, recourse or rights of action would otherwise cause
the Flow-Through Shares to be "prescribed shares" within the meaning of section
6202.1 of the regulations to the Tax Act.

     

    To the extent that any Person entitled
to be indemnified hereunder is not a party to this Subscription Agreement, the
Subscriber shall obtain and hold the rights and benefits of this Subscription
Agreement in trust for, and on behalf of, such Person and such Person shall be
entitled to enforce the provisions of this section notwithstanding that such
Person is not a party to this Subscription Agreement.

     

    ARTICLE
6                                ACKNOWLEDGEMENTS, COVENANTS,
REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

     

    
      	
              6.1

            	
              Representations, Warranties and
      Covenants of the Subscriber

            

    

     

    The Subscriber, on its own behalf and,
if applicable, on behalf of each beneficial purchaser for whom it is acting,
hereby represents and warrants to, and covenants with, the Corporation and the
Underwriter as follows as at the date hereof and as at the Closing Time and
acknowledges that the Corporation and the Underwriter, and their respective
counsel, are relying on such representations and warranties in connection with
the transactions contemplated herein:

     

    (a)           The Subscriber and (if applicable) each
beneficial purchaser for whom it is acting is resident or, if not an individual,
has its head office, in the jurisdiction set out on the face page of this
Subscription Agreement.  The address set forth on the face page of
this Subscription Agreement is the residence or place of business of the
Subscriber, or the residence or place of business of any beneficial purchaser
for whom the Subscriber is acting, and such address was not obtained or used
solely for the purpose of acquiring Flow-Through Shares and the Subscriber and
any beneficial purchaser was solicited to purchase Flow-Through Shares solely in
such jurisdiction. The Subscriber and, if the Subscriber is a partnership, any
partner or limited partner of the partnership, or if the Subscriber is a
corporation or limited liability company, any director, manager or officer, does
not have and will not have prior to the Termination Date a Prescribed
Relationship with the Corporation.

     

    (b)           The Subscriber is not a "U.S. Person"
(as that term is defined by Regulation S under the U.S. Securities Act, which
definition includes, but is not limited to, an individual resident in the United
States, an estate or trust of which any executor or administrator or trustee,
respectively, is a U.S. Person and any partnership or company organized or
incorporated under the laws of the United States (or any State thereof)) and is
not acquiring the Flow-Through Shares for the account or benefit of a U.S.
Person or a person in the United States.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (c)           The Flow-Through Shares have not been
offered to the Subscriber in the United States, and the individuals making the
order to purchase the Flow-Through Shares and executing and delivering this
Agreement on behalf of the Subscriber were not in the United States when the
order was placed and this Subscription Agreement was executed and
delivered.

     

    (d)           The Subscriber undertakes and agrees
that it will not offer or sell the Flow-Through Shares in the United States
unless such shares are registered under the U.S. Securities Act and the
securities laws of all applicable states of the United States or another
exemption from such registration requirements is available, and further that it
will not resell the Flow-Through Shares except in accordance with the provisions
of applicable securities legislation, regulations, rules, policies and orders
and stock exchange rules.

     

    (e)           The Subscriber will not engage in
hedging transactions with regard to the Flow-Through Shares unless conducted in
compliance with the U.S. Securities Act.

     

    (f)           The Subscriber acknowledges that the
Corporation and its transfer agent will refuse to register any transfer of any
of the Flow-Through Shares not made in accordance with the provisions of
Regulation S of the U.S. Securities Act, pursuant to an available exemption from
registration under the U.S. Securities Act or under an effective registration
statement under the U.S. Securities Act.

     

    (g)           The Subscriber, on its own behalf and
(if applicable) on behalf of each beneficial purchaser for whom it is acting,
represents, warrants and certifies as set out in Schedule "A" hereto and further
certifies that the Subscriber and (if applicable) each such beneficial
purchaser, as the case may be, falls into one or more of the categories of
prospectus exempt purchasers listed in Schedule "A" hereto (as specified by the
Subscriber in such Schedule).

     

    (h)           The Subscriber has duly and properly
completed, executed and delivered to the Corporation within applicable time
periods, the certificate and form set forth in Schedule "A" hereto and the
representations, warranties and certifications contained therein are true and
correct as at the date hereof and will be true and correct at the Closing
Time.

     

    (i)           The execution and delivery of this
Subscription Agreement, the performance and compliance with the terms hereof,
the subscription for and purchase of the Subscribed Shares and the completion of
the transactions described herein by the Subscriber will not result in any
material breach of, or be in conflict with or constitute a material default
under, or create a state of facts which, after notice or lapse of time, or both,
would constitute a material default under any term or provision of the
constating documents, by-laws or resolutions of the Subscriber or any beneficial
purchaser for whom the Subscriber is acting, the Securities Laws or any other
laws applicable to the Subscriber or any beneficial purchaser for whom the
Subscriber is acting, any agreement to which the Subscriber or any beneficial
purchaser for whom the Subscriber is acting is a party, or any judgment, decree,
order, statute, rule or regulation applicable to the Subscriber or any
beneficial purchaser for whom the Subscriber is acting

     

    (j)           The Subscriber is subscribing for the
Subscribed Shares as principal for its own account and not for the benefit of
any other Person (within the meaning of applicable Securities Laws) and not with
a view to the resale or distribution of all or any of the Subscribed Shares, or
if it is not subscribing as principal, it acknowledges that the Corporation may
be required by law to disclose to certain regulatory authorities the identity of
each beneficial purchaser of the Subscribed Shares for whom it is acting and
agrees to provide such information.

     

    (k)           In the case of a subscription for the
Subscribed Shares by the Subscriber acting as trustee or agent (including, for
greater certainty, a portfolio manager or comparable adviser) for a principal,
the Subscriber is duly and properly authorized to execute and deliver this
Subscription Agreement and all other necessary documentation in connection with
such subscription on behalf of such beneficial purchaser, who is subscribing as
principal for its own account, not for the benefit of any other Person and not
with a view to the resale or distribution of the Subscribed Shares, and this
Subscription Agreement has been duly authorized, executed and delivered by or on
behalf of and constitutes a legal, valid and binding agreement of such
principal, enforceable in accordance with its terms against such principal, and
the Subscriber acknowledges that the Corporation and/or the Underwriter may be
required by law to disclose the identity of such beneficial purchaser for whom
the Subscriber is acting and agrees to provide information as the Corporation
and/or the Underwriter may be required to disclose.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (l)           In the case of a subscription for the
Subscribed Shares by the Subscriber acting as principal, this Subscription
Agreement has been duly and properly authorized, executed and delivered by, and
constitutes a legal, valid and binding agreement of, the
Subscriber.  This Subscription Agreement is enforceable in accordance
with its terms against the Subscriber and (if applicable) any beneficial
purchaser on whose behalf the Subscriber is acting.

     

    (m)           If the Subscriber
is:

     

    (i)           a corporation, the Subscriber is duly
incorporated and is validly subsisting under the laws of its jurisdiction of
incorporation and has all requisite legal and corporate power and authority to
execute and deliver this Subscription Agreement, to subscribe for the Subscribed
Shares as contemplated herein and to observe and perform its obligations under
the terms of this Subscription Agreement;

     

    (ii)           a partnership, syndicate or other form
of unincorporated organization, the Subscriber has the necessary legal capacity
and authority to execute and deliver this Subscription Agreement on behalf of
such organization and to observe and perform its covenants and obligations
hereunder and has obtained all necessary approvals in respect thereof;
or

     

    (iii)           an individual, the Subscriber is of the
full age of majority and is legally competent to execute this Subscription
Agreement and to observe and perform his or her covenants and obligations
hereunder.

     

    (n)           Other than the Underwriter (and any
group of investment dealers managed by the Underwriter for the purposes of
offering the Flow-Through Shares for sale), there is no person acting or
purporting to act in connection with the transactions contemplated herein who is
entitled to any brokerage or finder's fee.  If any person claims that
any fee or other compensation is payable by the Corporation or the Underwriter
in connection with this subscription for the Subscribed Shares, the Subscriber
covenants to indemnify and hold harmless the Corporation and the Underwriter
with respect thereto and with respect to all costs reasonably incurred in the
defence thereof.

     

    (o)           The Subscriber is not, with respect to
the Corporation or any of its affiliates, a Control Person and will not become a
Control Person by virtue of the purchase of the Subscribed Shares, and does not
intend to act in concert with any other person to form a Control Person of the
Corporation.

     

    (p)           The Subscriber is not purchasing
Flow-Through Shares with knowledge of any material fact or information
concerning the Corporation which has not been generally disclosed to the
public.

     

    (q)           No person has made to the Subscriber any
written or oral representations:

     

    
      	
               
      

            	
              (i)

            	
              that any person will resell or
      repurchase any of the Flow-Through
  Shares;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              that any person will refund the
      Subscription Price; or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              as to the future price or value of
      the Flow-Through Shares.

            

    

     

    (r)           This subscription for Flow-Through
Shares has not been made through or as a result of, and the distribution of
Flow-Through Shares is not being accompanied by, any form of advertisement,
including, without limitation, in printed public media, radio, television,
internet or telecommunications, including electronic display, or as part of a
general solicitation.

     

    (s)           None of the funds the Subscriber is
using to purchase the Subscribed Shares is, to the knowledge of the Subscriber,
proceeds obtained or derived, directly or directly, as a result of illegal
activities.

     

    (t)           The Subscriber, and any beneficial
purchaser for whom it is acting, deals at arm's length and will continue to deal
at arm's length (within the meaning of the Tax Act and applicable Securities
Laws) with the Corporation.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (u)           If the Subscriber or a
beneficial purchaser for whom it is acting, as the case may be, is a
corporation, trust or partnership, it does not and will not have, in respect of
a renunciation of Resource Expenses hereunder, a "prohibited relationship" with
the Corporation within the meaning of subsection 66(12.671) of the Tax
Act.

     

    (v)           Neither the Subscriber, nor any
beneficial purchaser for whom it is acting, as the case may be, has or will
knowingly enter into any agreement or arrangement which will cause the
Flow-Through Shares to be or become "prescribed shares" for purposes of the Tax
Act.

     

    (w)           The delivery of this subscription, the
acceptance hereof by the Corporation and the issuance of Subscribed Shares to
the Subscriber complies with all applicable laws of the Subscriber's
jurisdiction of residence and domicile and will not cause the Corporation or any
of its officers or directors to become subject to or require any disclosure,
prospectus or other reporting requirement to which the Corporation is not
currently subject and which is not otherwise contemplated in this Subscription
Agreement.

     

    (x)           If the Subscriber is a corporation,
syndicate, partnership or other form of entity (other than an investment fund,
as defined in National Instrument 45-106), the Subscriber was not created or is
not being used solely to purchase or hold the Subscribed Shares and has a bona
fide purpose other than investing in the Subscribed Shares.

    
       

      
        	
                6.2

              	Acknowledgments and Agreements of the
  Subscriber

      

       

    

    The Subscriber, on its own behalf and,
if applicable, on behalf of each beneficial purchaser for whom it is acting,
acknowledges and agrees as follows:

     

    (a)           The Subscriber has received a copy of
the Term Sheet setting out the principal terms of the
Offering.

     

    (b)           The Subscriber acknowledges that the
Corporation contemplates completing the Offering and that the aggregate gross
proceeds of the Offering will be $10,000,000, and may be increased to
$13,000,000 upon written mutual consent of the Corporation and the
Underwriter.

     

    (c)           No securities commission, agency,
governmental authority, regulatory body, stock exchange or other regulatory body
has reviewed or passed on the merits of the Subscribed
Shares.

     

    (d)           The Subscribed Shares shall be subject
to statutory resale restrictions under the United States and the Securities Laws
of the province or territory in which the Subscriber resides and under other
applicable securities laws, and the Subscriber covenants that it will not resell
the Subscribed Shares except in compliance with such laws, and the Subscriber
acknowledges that it is solely responsible (and neither the Corporation nor the
Underwriter is in any way responsible) for such compliance.

     

    (e)           The Subscriber's ability to transfer the
Subscribed Shares is limited by, among other things, applicable Securities
Laws.

     

    (f)           In addition, the Subscriber acknowledges
that, while the Corporation has agreed to file the Registration Statement and
use its commercially reasonable efforts to cause it to be declared effective by
the SEC, there is no assurance that the Corporation 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 Flow-Through
Shares may not be resold by the Subscriber, except pursuant to an exemption
contained under the applicable securities laws, which may not be available, and
if the Registration Statement is not declared effective, the Flow-Through Shares
remain "restricted" securities under the U.S. Securities Act and may only be
sold pursuant to an effective registration statement with respect to such
securities, pursuant to Regulation S or another exemption from the registration
requirements of the U.S. Securities Act.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (g)           The certificates representing the
Subscribed Shares will bear, as of the Closing Date, the following legends as
required by National Instrument 45-102 – Resale of
Securities and with the
necessary information inserted and the Subscriber agrees to comply with the
terms of such legends:

     

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

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the TSX, and the Subscriber agrees to comply with
the terms of such legend:

     

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

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the Rights Plan:

     

    "UNTIL THE SEPARATION TIME (AS DEFINED
IN THE RIGHTS AGREEMENT REFERRED TO BELOW), THIS CERTIFICATE ALSO EVIDENCES AND
ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN A SHAREHOLDER
RIGHTS PLAN AGREEMENT, DATED AS OF THE 17TH DAY OF JANUARY, 2007 (THE "RIGHTS AGREEMENT"), BETWEEN THE CORPORATION AND CIBC
MELLON TRUST COMPANY, AS RIGHTS AGENT, THE TERMS OF WHICH ARE HEREBY
INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH MAY BE INSPECTED DURING
NORMAL BUSINESS HOURS AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
CORPORATION.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
AGREEMENT, SUCH RIGHTS MAY BE TERMINATED, MAY EXPIRE, MAY BECOME VOID (IF, IN
CERTAIN CASES, THEY ARE "BENEFICIALLY OWNED" BY AN "ACQUIRING PERSON", AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT, WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR ANY
SUBSEQUENT HOLDER) OR MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND MAY NO
LONGER BE EVIDENCED BY THIS CERTIFICATE.  THE CORPORATION WILL MAIL OR
ARRANGE FOR THE MAILING OF A COPY OF THE RIGHTS AGREEMENT TO THE HOLDER OF THIS
CERTIFICATE WITHOUT CHARGE AS SOON AS IS PRACTICABLE AFTER THE RECEIPT OF A
WRITTEN REQUEST THEREFORE".

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the U.S. Securities Act:

     

    "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 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,
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 OR ISSUER'S COUNSEL SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED BY THE
ISSUER 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 SATES"
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, EXCEPT AS
PERMITTED BY THE SECURITIES ACT. "

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (h)           The Underwriter and/or its counsel,
directors, officers, employees, agents and representatives assume no
responsibility or liability of any nature whatsoever for the accuracy or
adequacy of the Public Record or any publicly available information concerning
the Corporation or as to whether all information concerning the Corporation that
is required to be disclosed or filed by the Corporation under the Securities
Laws has been so disclosed or filed.

     

    (i)           The Subscriber and each beneficial
purchaser for whom it is acting shall execute and file, together with the
prescribed fees, all documentation required by the applicable Securities Laws or
by any legislation or order in force in its jurisdiction of residence or to
which it may be subject, within the time limits prescribed to permit the
subscription for, and issuance of, the Subscribed Shares and thereafter for any
subsequent disposition thereof and agrees that it will furnish to the
Corporation such certificates, legal opinions and other documentation as may be
required by the Corporation.

     

    (j)           If required by applicable Securities
Laws or by the Corporation, the Subscriber and each beneficial purchaser for
whom it is acting will execute, deliver and file or assist the Corporation in
filing such reports, undertakings and other documents with respect to the issue
of the Subscribed Shares as may be required by any securities commission, stock
exchange or other regulatory authority.

     

    (k)           The Subscriber, and each beneficial
purchaser for whom it is acting, have been advised to consult their own legal
advisors with respect to trading in the Subscribed Shares and with respect to
the resale restrictions imposed by the Securities Laws of the United States or
any province or territory in which the Subscriber resides and other applicable
securities laws, and acknowledges that no representation has been made
respecting the applicable hold periods imposed by the Securities Laws or other
resale restrictions applicable to such securities which restrict the ability of
the Subscriber (or others for whom it is acting) to resell such securities that
the Subscriber (or others for whom it is acting) is solely responsible to find
out what these restrictions are and the Subscriber is solely responsible (and
neither the Corporation nor the Underwriter is in any way responsible) for
compliance with applicable resale restrictions and the Subscriber is aware that
it (or the beneficial purchaser for whom it is acting) may not be able to resell
such securities except in accordance with limited exemptions under the
Securities Laws and other applicable securities laws.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (l)           The Subscriber has not received or been
provided with a prospectus, offering memorandum (within the meaning of the
Securities Laws) or any sales or advertising literature in connection with the
Offering and the Subscriber's decision to subscribe for Flow-Through Shares was
not based upon, and the Subscriber has not relied upon, any verbal or written
representations as to facts made by or on behalf of the Corporation or the
Underwriter. The Subscriber's decision to subscribe for Flow-Through Shares was
based solely upon the Term Sheet attached hereto as Schedule "B" and information
about the Corporation which is publicly available (any such information having
been obtained by the Subscriber without independent investigation or
verification by the Underwriter).

     

    (m)           The Corporation and the Underwriter, and
their respective counsel, are relying on the representations, warranties and
covenants contained herein and in the applicable Schedules attached hereto to
determine the Subscriber's eligibility to subscribe for Flow-Through Shares
under applicable Securities Laws and the Subscriber agrees to indemnify the
Corporation, the Underwriter and each of their respective directors and officers
against all losses (other than loss of profits), claims, costs, expenses,
damages or liabilities which any of them may suffer or incur as a result of or
arising from reliance thereon.  The Subscriber undertakes to
immediately notify the Underwriter of any change in any statement or other
information relating to the Subscriber set forth in such applicable Schedules
that takes place prior to the Closing Time.

     

    (n)           The Corporation and the Underwriter are
relying on an exemption from the requirement to provide the Subscriber with a
prospectus under the Securities Laws and, as a consequence of acquiring
Flow-Through Shares pursuant to such exemption, certain protections, rights and
remedies provided by the Securities Laws, including statutory rights of
rescission and/or damages, will not be available to the
Subscriber.

     

    (o)           The Flow-Through Shares are being
offered and sold in reliance on the exemption from registration contained in
Regulation S of the U.S. Securities Act.  Following the Closing, the
Corporation has agreed to register the resale of the Flow-Through Shares under
the U.S. Securities Act pursuant to the Registration Rights
Agreement.

     

    (p)           The Subscriber, and each beneficial
purchaser for whom it is acting, is responsible for obtaining such independent
legal and tax advice as it considers appropriate in connection with the
execution, delivery and performance of this Subscription Agreement and the
transactions contemplated under this Subscription Agreement, including without
limitation for the proposes of giving representations, warranties and covenants
under this Subscription Agreement.

     

    (q)           There is no government or other
insurance covering the Flow-Through Shares.

     

    (r)           The Subscriber acknowledges that the
Underwriter's counsel and the Corporation's counsel are acting as counsel to the
Underwriter and the Corporation, respectively, and not as counsel to the
Subscriber.

     

    (s)           The Subscriber acknowledges that 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 Subscribed Shares shall be borne by
the Subscriber.

     

    (t)           The Subscriber and each beneficial
purchaser for whom it is acting acknowledge that the Flow-Through Shares are
speculative in nature and that there are risks associated with the purchase of
Flow-Through Shares 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 Subscribed Shares, fully understands the speculative nature of
the Subscribed Shares and is able to bear the economic risk of loss of its
entire investment.

     

    (u)           The Subscriber has evaluated the risks
involved in investing in the Common Shares and has determined that the Common
Shares are a suitable investment for the Subscriber.  Specifically,
the aggregate amount of the investments the Subscriber has in, and the
Subscriber's commitments to, all similar investments that are illiquid is
reasonable in relation to the Subscriber's net worth, both before and after the
subscription for and purchase of the Common Shares pursuant to this
Agreement.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (v)           The Subscriber represents and warrants
further that the Subscriber has no contract, understanding, agreement or
arrangement with any Person to sell or transfer or pledge to such Person or
anyone else any of the Common Shares for which the Subscriber hereby subscribes
(in whole or in part); and the Subscriber represents and warrants that the
Subscriber has no plans to enter into any such contract, undertaking, agreement
or arrangement.

     

    (w)           The Subscriber acknowledges that it has
been furnished with such documents, materials and information as the Subscriber
deems necessary or appropriate for evaluating an investment in the
Company.  The Subscriber further acknowledges that it has had the
opportunity to ask questions of, and receive answers from, the directors and
officers of the Company and the Underwriter, concerning the terms and conditions
of the Common Shares and the Offering.

     

    
      	
              6.3

            	
              Reliance on Representations,
      Warranties, Covenants and
  Acknowledgements

            

    

     

    The Subscriber acknowledges and agrees
that the representations, warranties, covenants and acknowledgements made by the
Subscriber in this Subscription Agreement are made with the intention that they
may be relied upon by the Corporation and the Underwriter in determining the
Subscriber's eligibility (and, if applicable, the eligibility of others for whom
the Subscriber is acting) to purchase Flow-Through Shares under the Securities
Laws.  The Subscriber further agrees that by accepting Flow-Through
Shares, the Subscriber shall be representing and warranting that such
representations, warranties, acknowledgements and covenants are true as at the
Closing Time with the same force and effect as if they had been made by the
Subscriber at the Closing Time and that they shall survive the purchase by the
Subscriber of Flow-Through Shares and shall continue in full force and effect
notwithstanding any subsequent disposition by the Subscriber of any of such
Flow-Through Shares.

     

    ARTICLE
7                                SURVIVAL OF REPRESENTATIONS, WARRANTIES
AND COVENANTS

     

    
      	
              7.1

            	
              Survival of Representations,
      Warranties and Covenants of the
  Corporation

            

    

     

    The representations, warranties and
covenants of the Corporation contained in this Subscription Agreement shall
survive the Closing and, notwithstanding such Closing or any investigation made
by or on behalf of the Subscriber with respect thereto, shall continue in full
force and effect for the benefit of the Subscriber and the
Underwriter.

     

    
      	
              7.2

            	
              Survival of Representations,
      Warranties and Covenants of the
  Subscriber

            

    

     

    The representations, warranties and
covenants of the Subscriber contained in this Subscription Agreement shall
survive the Closing and, notwithstanding such Closing or any investigation made
by or on behalf of the Corporation or the Underwriter with respect thereto,
shall continue in full force and effect for the benefit of the Corporation and
the Underwriter.

     

    ARTICLE
8                                COMMISSION

     

    
      	
              8.1

            	
              Commission to
      Underwriter

            

    

     

    The Subscriber understands that in
connection with the Offering the Underwriter will receive from the Corporation,
on Closing, a cash commission equal to 6.5% of the gross proceeds from the
Offering.  In addition, the Underwriter will receive a number of
compensation options ("Compensation
Options") that is equal to
6% of the number of Offered Securities sold pursuant to the Offering, each
Compensation Option being exercisable at a price of $0.45 for a period of 24
months from the Closing Date to acquire one Common Share.  No other
fee or commission is payable by the Corporation in connection with the
completion of the Offering; however, the Corporation will pay certain fees and
expenses of the Underwriter in connection with the Offering, as set out in the
Underwriting  Agreement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    ARTICLE
9                                COLLECTION OF PERSONAL
INFORMATION

     

    
      	
              9.1

            	
              Collection of Personal
      Information

            

    

     

    By executing this Subscription
Agreement, the Subscriber hereby consents to the collection, use and disclosure
of the personal information provided herein and other personal information
provided by the Subscriber or collected by the Corporation or its agents as
reasonably necessary in connection with the Subscriber's subscription for the
Subscribed Shares (collectively, "personal
information") as follows:
(a) the Corporation may use personal information and disclose personal
information to intermediaries such as the Corporation's legal counsel and
withholding and/or transfer agents for the purposes of determining the
Subscriber's eligibility to invest in the Subscribed Shares and for managing and
administering the Subscriber's investment in the Subscribed Shares; (b) if the
Subscriber purchased securities through a registered dealer, the Corporation may
disclose and collect such personal information relating to the Subscriber's
holding of the Subscribed Shares to and from the dealer; (c) the Corporation and
its agents may use the Subscriber's social insurance number for income reporting
purposes in accordance with applicable law; (d) the Corporation, its agents and
advisors, may each collect, use and disclose personal information for the
purposes of meeting legal, regulatory, self-regulatory, security and audit
requirements (including any applicable tax, securities, money laundering or
anti-terrorism legislation, rules or regulations) and as otherwise permitted or
required by law, which disclosures may include disclosures to tax, securities or
other regulatory or self-regulatory authorities in Canada and/or in foreign
jurisdictions, if applicable, in connection with the regulatory oversight
mandate of such authorities; (e) the Corporation and its agents and advisors may
use personal information and disclose personal information to parties connected
with the proposed or actual transfer, sale, assignment, merger or amalgamation
of the Corporation or its business or assets or similar transactions, for the
purpose of permitting such parties to evaluate and/or proceed with and complete
such transaction.  Purchasers, assignees and successors of the
Corporation or its business or assets may collect, use and disclose personal
information as described in this Subscription Agreement.  The
Subscriber acknowledges that the Corporation's agents or intermediaries may be
located outside of Canada, and personal information may be transferred and/or
processed outside of Canada for the purposes described above, and that measures
the Issuer may use to protect personal information while handled by agents,
intermediaries or other third parties on its behalf, and personal information
otherwise disclosed or transferred outside of Canada for the purposes described
above, are subject to legal requirements in foreign countries applicable to
Issuer or such third parties, for example lawful requirements to disclose
personal information to government authorities in those
countries.

     

    If the Subscriber is resident in, or
otherwise subject to the applicable securities legislation of Ontario, the
Subscriber acknowledges (i) the delivery to the Ontario Securities Commission of
the Subscriber's full name, residential address and telephone number, the number
and type of securities purchased by the Subscriber, the total purchase price,
the exemption relied on, and the date of distribution, (ii) that such
information is being collected indirectly by the Ontario Securities Commission
under the authority granted to it in securities legislation, (iii) that such
information is being collected for the purposes of the administration and
enforcement of the securities legislation of Ontario, and (iv) that the
Administrative Assistant to the Director of Corporate Finance at the Ontario
Securities Commission, Suite 1903, Box 55, 20 Queen Street West, Toronto,
Ontario M5H 3S8, telephone (416) 593-8086, can be contacted to answer questions
about the Ontario Securities Commission's indirect collection of such
information. The Subscriber hereby authorizes the indirect collection of such
information by the Ontario Securities Commission.

     

    ARTICLE
10                                MISCELLANEOUS

     

    
      	
              10.1

            	
              Further
      Assurances

            

    

     

    Each of the parties hereto upon the
request of each of the other parties hereto, whether before or after the Closing
Time, shall do, execute, acknowledge and deliver or cause to be done, executed,
acknowledged and delivered all such further acts, deeds, documents, assignments,
transfers, conveyances, powers of attorney and assurances as may reasonably be
necessary or desirable to complete the transactions contemplated
herein.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
              10.2

            	
              Notices

            

    

     

    Any notice, direction or other
instrument required or permitted to be given to any party hereto shall be in
writing and shall be sufficiently given if delivered personally, or transmitted
by facsimile tested prior to transmission to such party, as
follows:

     

    (i)           in the case of the Corporation,
to:

    
      
         

        
          
            
              
                	
                         
      

                      	
                        

                          Apollo Gold
      Corporation

                        

                      

              

              
                	
                         
      

                      	
                        

                          5655 S. Yosemite
      Street,

                        

                      

              

              
                	
                         
      

                      	
                        

                          Suite
    200

                        

                      

              

              
                	
                         
      

                      	
                        

                          Greenwood Village, CO,
      USA

                        

                      

              

              
                	
                         
      

                      	
                        

                          80111

                        

                      
	 	 

              

              
                	
                         
      

                      	
                        Attention:

                      	
                        R. David
      Russell

                      

              

              
                	
                         
      

                      	
                        Fax:

                      	
                        720-482-0957

                      

              

              
                
                  
                     

                    with a copy to:

                    
                       

                      
                        
                          
                            
                              	
                                       
      

                                    	
                                      

                                        

                                          Fogler, Rubinoff
      LLP

                                        

                                      

                                    

                            

                            
                              	
                                       
      

                                    	
                                      

                                        

                                          95 Wellington Street
      West

                                        

                                      

                                    

                            

                            
                              	
                                       
      

                                    	
                                      

                                        

                                          Suite
      1200

                                        

                                      

                                    

                            

                            
                              	
                                       
      

                                    	
                                      

                                        

                                          Toronto-Dominion
      Centre

                                        

                                      

                                    

                            

                            
                              	
                                       
      

                                    	
                                      

                                        

                                          Toronto, Ontario
      

                                        

                                      

                                    
	 	M5J
      2Z9

                            

                            
                              	
                                       
      

                                    	
                                      Attention:

                                    	
                                      G. Michael
      Hobart

                                    

                            

                            
                              	
                                       
      

                                    	
                                      Fax:

                                    	
                                      416-941-8852

                                    

                            

                            
                               

                            

                          

                        

                      

                    

                  

                  (ii)           in the case of the Subscriber, at the
address specified on the face page hereof, with a copy to the Underwriter
at:

                  
                     

                    
                      
                        	
                                 
      

                              	
                                Haywood Securities
      Inc

                              

                      

                      
                        	
                                 
      

                              	
                                Brookfield Place, 181 Bay
      Street

                              

                      

                      
                        	
                                 
      

                              	
                                Suite 2910, Box
      808

                              

                      

                      
                        	
                                 
      

                              	
                                Toronto, Ontario
      

                              
	 	M5J
      2T3

                      

                      
                      

                      
                        	
                                 
      

                              	
                                Attention:

                              	
                                Greg
    McKenzie

                              

                      

                      
                        	
                                 
      

                              	
                                Fax:

                              	
                                (416)
    507-2350

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    (b)           Any such notice, direction or other
instrument, if delivered personally, shall be deemed to have been given and
received on the day on which it was delivered, provided that if such day is not
a Business Day then the notice, direction or other instrument shall be deemed to
have been given and received on the first Business Day next following such day
and if transmitted by fax, shall be deemed to have been given and received on
the day of its transmission, provided that if such day is not a Business Day or
if it is transmitted or received after the end of normal business hours then the
notice, direction or other instrument shall be deemed to have been given and
received on the first Business Day next following the day of such
transmission.

     

    (c)           Any party hereto may change its address
for service from time to time by notice given to each of the other parties
hereto in accordance with the foregoing provisions.

     

    
      	
              10.3

            	
              Time of the
      Essence

            

    

     

    Time shall be of the essence of this
Subscription Agreement and every part hereof.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
              10.4

            	
              Costs and
      Expenses

            

    

     

    All costs and expenses (including,
without limitation, the fees and disbursements of legal counsel) incurred in
connection with this Subscription Agreement and the transactions herein
contemplated shall be paid and borne by the party incurring such costs and
expenses.

     

    
      	
              10.5

            	
              Applicable
    Law

            

    

     

    This Subscription Agreement shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the internal laws of the Province of Ontario and the laws of
Canada applicable therein, without reference to any conflicts of law rules that
would impose a law of another jurisdiction. Any and all disputes arising under
this Subscription Agreement, whether as to interpretation, performance or
otherwise, shall be subject to the non-exclusive jurisdiction of the courts of
the Province of Ontario and each of the parties hereto hereby irrevocably
attorns to the jurisdiction of the courts of such province.

     

    
      	
              10.6

            	
              Entire
      Agreement

            

    

     

    This Subscription Agreement, including
the Schedules hereto, constitutes the entire agreement between the parties with
respect to the transactions contemplated herein and cancels and supersedes any
prior understandings, agreements, negotiations and discussions between the
parties.  There are no representations, warranties, terms, conditions,
undertakings or collateral agreements or understandings, express or implied,
between the parties hereto other than those expressly set forth in this
Subscription Agreement or in any such agreement, certificate, affidavit,
statutory declaration or other document as aforesaid. This Subscription
Agreement may not be amended or modified in any respect except by written
instrument executed by each of the parties hereto.

     

    
      	
              10.7

            	
              Counterparts

            

    

     

    This Subscription Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an
original and all of which together shall constitute one and the same
Subscription Agreement. Counterparts may be delivered either in original or
faxed form and the parties adopt any signature received by a receiving fax
machine as original signatures of the parties.

     

    
      	
              10.8

            	
              Assignment

            

    

     

    This Subscription Agreement may not be
assigned by either party except with the prior written consent of the other
parties hereto.

     

    
      	
              10.9

            	
              Enurement

            

    

     

    This Subscription Agreement shall enure
to the benefit of and be binding upon the parties hereto and their respective
heirs, executors, successors (including any successor by reason of the
amalgamation or merger of any party), administrators and permitted
assigns.

     

    
      	
              10.10

            	
              Language

            

    

     

    The parties hereto acknowledge and
confirm that they have requested that this Subscription Agreement as well as all
notices and other documents contemplated hereby be drawn up on the English
language. Les parties aux
présentes reconnaissent et conferment qu'elles ont convenu que la présente
convention ainsi que tous les avis et documents qui s'y rattachent soient
rédigés dans la langue anglaise.

     

    
      
        
        

      

      
        21Unassociated Document

     

    EXHIBIT 4.6

     

    REGISTRATION RIGHTS
AGREEMENT

     

    THIS REGISTRATION RIGHTS AGREEMENT (this
"Agreement") is made and entered into as of July ●, 2009 by and among Apollo
Gold Corporation, a Yukon Territory corporation (the "Company"), the Subscribers
(as defined below) and Haywood Securities Inc. ("Haywood").  In order
to induce the Subscribers under the Subscription Agreements to enter into the
Subscription Agreements, the Company has agreed to provide the registration
rights set forth in this Agreement.

     

    The Company agrees with the Subscribers
and Haywood (each of the foregoing a "Holder" and together the "Holders"), as
follows:

     

    
      	
              SECTION 1.

            	
              Definitions.

            

    

     

    Capitalized terms used herein without
definition shall have their respective meanings set forth in the Subscription
Agreements for Flow-Through Shares or Common Shares, dated July ●, 2009 (the
"Subscription Agreements").  In addition to the terms that are defined
elsewhere in this Agreement, the following terms shall have the following
meanings:

     

    "Affiliate," with respect to any
specified person, has the meaning specified in Rule 144.

     

    "Common Shares" means the Company's
common shares, no par value.

     

    "Company" has the meaning specified in
the first paragraph of this Agreement.

     

    "Deferral Notice" has the meaning
specified in Section 3(d) hereof.

     

    "Deferral Period" has the meaning
specified in Section 3(d) hereof.

     

    "Effectiveness Deadline Date" has the
meaning specified in Section 2(a) hereof.

     

    "Effectiveness Period" means the period
commencing on the Issue Date and ending on the date that all Registrable
Securities have ceased to be Registrable Securities.

     

    "Exchange Act" means the United States
Securities Exchange Act of 1934, as amended, and the rules and regulations of
the SEC promulgated thereunder.

     

    "Filing Deadline Date" has the meaning
specified in Section 2(a) hereof.

     

    "Holder" has the meaning specified in
the second paragraph of this Agreement.

     

     "Initial Resale Registration
Statement" has the meaning specified in Section 2(a) hereof.

     

    "Issue Date" means July [__],
2009.

     

    "Material Event" has the meaning
specified in Section 3(d) hereof.

     

    "Notice and Questionnaire" means a
written notice delivered to the Company containing substantially the information
called for by the Selling Securityholder Notice and Questionnaire attached as
Annex A to this Agreement.

     

    "Notice Holder" means on any date, any
Holder that has delivered a Notice and Questionnaire to the Company on or prior
to such date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    "Offering" means the offering and sale
of Flow-Through Shares and Common Shares to the Subscribers.

     

    "Prospectus" means the prospectus
included in any Registration Statement (including, without limitation, a
prospectus that discloses information previously omitted from a prospectus filed
as part of an effective registration statement in reliance upon Rule 415
promulgated under the Securities Act), as amended or supplemented by any
amendment or prospectus supplement, including post-effective amendments, and all
materials incorporated by reference or explicitly deemed to be incorporated by
reference in such Prospectus.

     

    "Registrable Securities" means the
Flow-Through Shares and Common Shares issued to Subscribers in the Offering and
the Common Shares issuable upon exercise of the compensation options issued to
Haywood in connection with the offering contemplated by the Subscription
Agreements and any security issued with respect thereto upon any stock dividend,
split, merger or similar event until, in the case of any such security, the
earlier of (i) the sale pursuant to Rule 144 under the Securities Act or a
registration statement of such Registrable Securities or (ii) the expiration of
the holding period applicable thereto under Rule 144(d) for such Registrable
Securities, assuming such securities are not held by an Affiliate of the
Company.

     

    "Registration Statement" means any
registration statement of the Company that covers any of the Registrable
Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement, including
post-effective amendments, all exhibits, and all materials incorporated by
reference or explicitly deemed to be incorporated by reference in such
registration statement.

     

    "Resale Registration Statement" has the
meaning specified in Section 2(a) hereof.

     

    "Rule 144" means Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or any similar or
successor rule or regulation hereafter adopted by the SEC having substantially
the same effect as such Rule.

     

    "SEC" means the United States Securities
and Exchange Commission and any successor agency.

     

    "Securities Act" means the United States
Securities Act of 1933, as amended, and the rules and regulations promulgated by
the SEC thereunder.

     

    "Subscribers" means the subscribers to
the Subscription Agreements.

     

    "Subsequent Resale Registration
Statement" has the meaning specified in Section 2(b) hereof.

     

    
      	
              SECTION 2.

            	
              Resale
      Registration.

            

    

     

    
      	
               
      

            	
              (a)

            	
              The Company shall prepare and file
      or cause to be prepared and filed with the SEC no later than a date which
      is forty-five (45) days after the Issue Date (the "Filing Deadline Date")
      a Registration Statement (the "Initial Resale Registration Statement")
      registering the resale from time to time by Holders of all of the
      Registrable Securities (a "Resale Registration Statement"). The Initial
      Resale Registration Statement shall be on Form S-3 or another appropriate
      form permitting registration of such Registrable Securities for resale by
      such Holders in accordance with the methods of distribution set forth in
      the Initial Resale Registration Statement. The Company shall use its
      commercially reasonable efforts to cause the Initial Resale Registration
      Statement to be declared effective under the Securities Act no later than
      the date (the "Effectiveness Deadline Date") that is one hundred and
      twenty (120) days (or, in the case of a full review by the SEC, one
      hundred and eighty (180) days) after the Issue Date, and to keep, subject
      to Section 3(d)(A) hereof, the Initial Resale Registration Statement (or
      any Subsequent Resale Registration Statement) continuously effective under
      the Securities Act until the expiration of the Effectiveness Period;
      provided, however, that if the SEC determines that the Company is
      ineligible to use Form S-3 to register the resale by any Holder of the
      Registrable Securities because such Holder(s) is deemed to be an Affiliate
      of the Company (individually or collectively), then the Filing Deadline
      Date with respect to any such Holders shall be 90 days after the Issue
      Date and the Effectiveness Deadline Date shall be 180 days after the Issue
      Date.  Each Holder that became a Notice Holder on or prior to
      the date ten (10) Business Days prior to the time that the Initial Resale
      Registration Statement became effective shall be named as a selling
      security holder in the Initial Resale Registration Statement and the
      related Prospectus in such a manner as to permit such Holder to deliver
      such Prospectus to purchasers of Registrable Securities in accordance with
      applicable law (other than laws not generally applicable to all such
      Holders). Notwithstanding the foregoing, no Holder shall be entitled to
      have the Registrable Securities held by it covered by such Resale
      Registration Statement unless such Holder has provided a Notice and
      Questionnaire in accordance with and in compliance with Section 4. The
      Company may permit any of its security holders to include any of the
      Company's securities in the Initial Resale Registration Statement or any
      Subsequent Resale Registration
Statement.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              If the Initial Resale Registration
      Statement or any Subsequent Resale Registration Statement ceases to be
      effective for any reason at any time during the Effectiveness Period, the
      Company shall use its commercially reasonable efforts to obtain the prompt
      withdrawal of any order suspending the effectiveness thereof, and in any
      event shall within thirty (30) days of such cessation of effectiveness
      amend the Resale Registration Statement in a manner reasonably expected by
      the Company to obtain the withdrawal of the order suspending the
      effectiveness thereof, or file an additional Resale Registration Statement
      covering all of the securities that as of the date of such filing are
      Registrable Securities (a "Subsequent Resale Registration Statement"). If
      a Subsequent Resale Registration Statement is filed, the Company shall use
      commercially reasonable efforts to cause the Subsequent Resale
      Registration Statement to become effective as promptly as is reasonably
      practicable after such filing or, if filed during a Deferral Period, after
      the expiration of such Deferral Period, and to keep such Registration
      Statement (or Subsequent Resale Registration Statement), subject to
      Section 3(d)(A) hereof, continuously effective until the end of the
      Effectiveness Period.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The Company shall supplement and
      amend the Initial or any Subsequent Resale Registration Statement if
      required by the rules, regulations or instructions applicable to the
      registration form used by the Company for such Resale Registration
      Statement, if required by the Securities
  Act.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Each Holder of Registrable
      Securities agrees that if such Holder wishes to sell Registrable
      Securities pursuant to a Resale Registration Statement and related
      Prospectus, it will do so only in accordance with this Section 2(d),
      Section 3(d) and Section 4. Each Holder of Registrable Securities wishing
      to sell Registrable Securities pursuant to the Initial or any Subsequent
      Resale Registration Statement and related Prospectus agrees to deliver a
      Notice and Questionnaire to the Company promptly following the date hereof
      and notify the Company of any change in such information at least five (5)
      business days prior to the filing of the Initial Resale Registration
      Statement or subsequent Resale Registration Statement. From and after the
      date the Initial Resale Registration Statement is declared effective, the
      Company shall, as promptly as is reasonably practicable after the date a
      fully completed and legible Notice and Questionnaire is received by the
      Company, (i) if required by applicable law, file with the SEC a
      post-effective amendment to the Resale Registration Statement or prepare
      and, if required by applicable law, file a supplement to the related
      Prospectus or a supplement or amendment to any document incorporated
      therein by reference or file any other document required by the SEC so
      that the Holder delivering such Notice and Questionnaire is named as a
      selling security holder in the Resale Registration Statement and the
      related Prospectus in such a manner as to permit such Holder to deliver
      such Prospectus to purchasers of the Registrable Securities in accordance
      with applicable law (other than laws not generally applicable to all
      Holders of Registrable Securities wishing to sell Registrable Securities
      pursuant to the Resale Registration Statement and related Prospectus) and
      using the manner of sale specified in the Notice and Questionnaire, and,
      if the Company shall file a post-effective amendment to the Resale
      Registration Statement, use commercially reasonable efforts to cause such
      post-effective amendment to be declared effective under the Securities Act
      as promptly as is reasonably practicable; (ii) provide such Holder copies
      of any documents filed pursuant to Section 2(d)(i); and (iii) notify such
      Holder as promptly as is reasonably practicable after the effectiveness
      under the Securities Act of any post-effective amendment filed pursuant to
      Section 2(d)(i); provided, that if such Notice and Questionnaire is
      delivered during a Deferral Period, the Company shall so inform the Holder
      delivering such Notice and Questionnaire and shall take the actions set
      forth in clauses (i), (ii) and (iii) above upon expiration of the Deferral
      Period in accordance with Section 3(d), provided, further, that if under
      applicable law the Company has more than one option as to the type or
      manner of making any such filing, the Company will make the required
      filing or filings in the manner or of a type that is reasonably expected
      to result in the earliest availability of the Prospectus for effecting
      resales of Registrable Securities. Notwithstanding anything contained
      herein to the contrary, the Company shall be under no obligation to name
      any Holder that is not a Notice Holder as a selling security holder in any
      Registration Statement or related Prospectus; provided, however, that any
      Holder that becomes a Notice Holder pursuant to the provisions of this
      Section 2(d) of this Agreement (whether or not such Holder was a Notice
      Holder at the time the Registration Statement was initially declared
      effective) shall be named as a selling security holder in the Registration
      Statement or related Prospectus subject to and in accordance with the
      requirements of this Section
2(d).

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              SECTION 3.

            	
              Registration
      Procedures.

            

    

     

    In connection with the registration
obligations of the Company under Section 2 hereof, the Company
shall:

     

    
      	
               
      

            	
              (a)

            	
              Prepare and file with the SEC such
      amendments and post-effective amendments to each Registration Statement as
      may be necessary to keep such Registration Statement continuously
      effective for the applicable period specified in Section 2(a); cause the
      related Prospectus to be supplemented by any required Prospectus
      supplement, and as so supplemented to be filed pursuant to Rule 424 (or
      any similar provisions then in force) under the Securities Act; and use
      commercially reasonable efforts to comply with the provisions of the
      Securities Act applicable to it with respect to the disposition of all
      securities covered by such Registration Statement during the Effectiveness
      Period in accordance with the intended methods of disposition by the
      sellers thereof set forth in such Registration Statement as so amended or
      such Prospectus as so
supplemented.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Subject to Section 3(d), submit to
      the SEC, within two (2) Business Days after the Company learns that no
      review of a particular Registration Statement will be made by the staff of
      the SEC or that the staff has no further comments on a particular
      Registration Statement, as the case may be, a request for acceleration of
      effectiveness of such Registration Statement to a time and date not later
      than 48 hours after the submission of such
  request.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Use commercially reasonable
      efforts to obtain the withdrawal of any order suspending the effectiveness
      of a Registration Statement or the lifting of any suspension of the
      qualification (or exemption from qualification) of any of the Registrable
      Securities for sale in any jurisdiction in which they have been qualified
      for sale, in either case at the earliest possible moment or, if any such
      order or suspension is made effective during any Deferral Period, at the
      earliest possible moment after the expiration of such Deferral
      Period.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Upon (A) the issuance by the SEC
      of a stop order suspending the effectiveness of the Resale Registration
      Statement or the initiation of proceedings with respect to the Resale
      Registration Statement under Section 8(d) or 8(e) of the Securities Act,
      (B) the occurrence of any event or the existence of any fact (a "Material
      Event") as a result of which any Registration Statement shall contain any
      untrue statement of a material fact or omit to state any material fact
      required to be stated therein or necessary to make the statements therein
      not misleading, or any Prospectus shall contain any untrue statement of a
      material fact or omit to state any material fact necessary to make the
      statements therein, in light of the circumstances under which they were
      made, not misleading (including, in any such case, as a result of the
      non-availability of financial statements), or (C) the occurrence or
      existence of any development, event, fact, situation or circumstance
      relating to the Company that, in the discretion of the Company, makes it
      appropriate to suspend the availability of the Resale Registration
      Statement and the related Prospectus, (i) in the case of clause (B) above,
      subject to the next sentence, as promptly as is reasonably practicable
      prepare and file a post-effective amendment to such Registration Statement
      or a supplement to the related Prospectus or any document incorporated
      therein by reference or file any other required document that would be
      incorporated by reference into such Registration Statement and Prospectus
      so that such Registration Statement does not contain any untrue statement
      of a material fact or omit to state any material fact required to be
      stated therein or necessary to make the statements therein not misleading,
      and such Prospectus does not contain any untrue statement of a material
      fact or omit to state any material fact necessary to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading, as thereafter delivered to the purchasers of the Registrable
      Securities being sold thereunder, and, in the case of a post-effective
      amendment to a Registration Statement, subject to the next sentence, use
      commercially reasonable efforts to cause it to be declared effective as
      promptly as is reasonably practicable, and (ii) give notice (via
      facsimile, telephone or electronic mail followed by a written notice by
      first-class mail) to the Notice Holders that the availability of the
      Resale Registration Statement is suspended (a "Deferral Notice") and, upon
      receipt of any Deferral Notice, each Notice Holder agrees not to sell any
      Registrable Securities pursuant to the Registration Statement until such
      Notice Holder's receipt of copies of the supplemented or amended
      Prospectus provided for in clause (i) above, or until it is advised in
      writing by the Company that the Prospectus may be used, and has received
      copies of any additional or supplemental filings that are incorporated or
      deemed incorporated by reference in such Prospectus. The Company will use
      commercially reasonable efforts to ensure that the use of the Prospectus
      may be resumed (x) in the case of clause (A) above, as promptly as is
      reasonably practicable, (y) in the case of clause (B) above, as soon as,
      in the sole reasonable judgment of the Company, public disclosure of such
      Material Event would not be prejudicial to or contrary to the interests of
      the Company or, if necessary to avoid unreasonable burden or expense, as
      soon as reasonably practicable thereafter and (z) in the case of clause
      (C) above, as soon as, in the reasonable discretion of the Company, such
      suspension is no longer appropriate. The period during which the
      availability of the Registration Statement and any Prospectus is suspended
      (the "Deferral Period") is not to exceed (i) 20 consecutive days at any
      one time; (ii) 30 days in the aggregate in any three-month period; or
      (iii) 60 days in the aggregate during any 12-month period, or as otherwise
      required by applicable regulatory authority; provided that, the number of
      days the Company is required to keep the Registration Statement effective
      shall be extended by the number of days equal to the aggregate Deferral
      Period(s). The first day of any Deferral Period must be at least two (2)
      trading days after the last day of any prior Deferral
      Period.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

            	
              During the Effectiveness Period
      (except during such periods that a Deferral Notice is outstanding and has
      not been revoked), deliver to each Notice Holder in connection with any
      sale of Registrable Securities pursuant to a Registration Statement,
      without charge, as many copies of the Prospectus or Prospectuses relating
      to such Registrable Securities and any amendment or supplement thereto as
      such Notice Holder may reasonably request; and the Company hereby consents
      (except during such periods that a Deferral Notice is outstanding and has
      not been revoked) to the use of such Prospectus or each amendment or
      supplement thereto by each Notice Holder in connection with any offering
      and sale of the Registrable Securities covered by such Prospectus or any
      amendment or supplement thereto in the manner set forth
      therein.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Subject to Section 3(d), prior to
      any public offering of the Registrable Securities pursuant to the Resale
      Registration Statement, use commercially reasonable efforts to register or
      qualify or cooperate with the Notice Holders in connection with the
      registration or qualification (or exemption from such registration or
      qualification) of such Registrable Securities for offer and sale under the
      securities or Blue Sky laws of such jurisdictions within the United States
      as any Notice Holder reasonably requests in writing (which request may be
      included in the Notice and Questionnaire), it being agreed that no such
      registration or qualification will be made unless so requested; prior to
      any public offering of the Registrable Securities pursuant to the Resale
      Registration Statement, use commercially reasonable efforts to keep each
      such registration or qualification (or exemption therefrom) effective
      during the Effectiveness Period in connection with such Notice Holder's
      offer and sale of Registrable Securities pursuant to such registration or
      qualification (or exemption therefrom) and do any and all other acts or
      things necessary to enable the disposition in such jurisdictions of such
      Registrable Securities in the manner set forth in the relevant
      Registration Statement and the related Prospectus; provided, that the
      Company will not be required to (i) qualify as a foreign corporation or as
      a dealer in securities in any jurisdiction where it is not otherwise
      qualified or (ii) take any action that would subject it to general service
      of process in suits or to taxation in any such jurisdiction where it is
      not then so subject.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              SECTION 4.

            	
              Holder's
      Obligations.

            

    

     

    Each Holder agrees, by acquisition of
the Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Registration
Statement or to receive a Prospectus relating thereto, unless such Holder has
furnished the Company with a properly completed Notice and Questionnaire as
required pursuant to this Section 4 (including the information required to be
included in such Notice and Questionnaire) and the information set forth in the
next sentence. Each Holder of Registrable Securities wishing to sell Registrable
Securities pursuant to the Initial or any Subsequent Resale Registration
Statement and related Prospectus agrees to deliver a Notice and Questionnaire to
the Company promptly following the date hereof and notify the Company of any
change in such information at least five (5) business days prior to the filing
of the Initial Resale Registration Statement or Subsequent Resale Registration
Statement. Each Notice Holder agrees promptly to furnish to the Company in
writing all information required to be disclosed in order to make the
information previously furnished to the Company by such Notice Holder not
misleading, any other information regarding such Notice Holder and the
distribution of such Registrable Securities as may be required to be disclosed
in the Registration Statement under applicable law or pursuant to SEC comments
and any information otherwise required by the Company to comply with applicable
law or regulations. Each Holder further agrees, following termination of the
Effectiveness Period, to notify the Company, within ten (10) Business Days of a
request, of the amount of Registrable Securities sold pursuant to the
Registration Statement and, in the absence of a response, the Company may assume
that all of the Holder's Registrable Securities were so
sold.

     

    
      	
              SECTION 5.

            	
              Registration
      Expenses.

            

    

     

    The Company shall bear all fees and
expenses incurred in connection with the performance by the Company of its
obligations under Sections 2 and 3 of this Agreement whether or not any of the
Registration Statements are declared effective. Such fees and expenses shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (x) with respect to filings required to be
made with the NYSE AMEX LLC and (y) of compliance with federal and state
securities or Blue Sky laws to the extent such filings or compliance are
required pursuant to this Agreement (including, without limitation, reasonable
fees and disbursements of the counsel specified in the next sentence in
connection with Blue Sky qualifications of the Registrable Securities under the
laws of such jurisdictions as the Notice Holders of a majority of the
Registrable Securities being sold pursuant to a Registration Statement may
designate)), (ii) printing expenses, (iii) duplication expenses relating to
copies of any Registration Statement or Prospectus delivered to any Holders
hereunder, and (iv) fees and disbursements of counsel for the Company in
connection with the Resale Registration Statement, provided, however, that the
Company shall not be responsible for any brokers' fees, commissions or discounts
in connection with the sale of Registrable Securities or the fees and expenses
of legal counsel for the Holders. In addition, the Company shall pay its
internal expenses (including, without limitation, all salaries and expenses of
officers and employees performing legal or accounting duties), and its expenses
for any annual audit, the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange on which the
same securities of the Company are then listed and the fees and expenses of any
person, including special experts, retained by the Company.

     

    
      	
              SECTION 6.

            	
              Information
      Requirements.

            

    

     

    The Company covenants that, if at any
time before the end of the Effectiveness Period the Company is not subject to
the reporting requirements of the Exchange Act, it will cooperate with any
Holder of Registrable Securities and take such further reasonable action as any
Holder of Registrable Securities may reasonably request in writing (including,
without limitation, making such reasonable representations as any such Holder
may reasonably request), all to the extent required from time to time to enable
such Holder to sell Registrable Securities without registration under the
Securities Act within the limitations of Rule 144 under the Securities Act and
customarily taken in connection with sales pursuant to such exemptions. Upon the
written request of any Holder of Registrable Securities, the Company shall
deliver to such Holder a written statement as to whether it has complied with
the filing requirements of Rule 144.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              SECTION 7.

            	
              Indemnification
      and Contribution.

            

    

     

    
      	
               
      

            	
              (a)

            	
              The Company agrees to indemnify
      and hold harmless each Holder of Registrable Securities covered by the
      Resale Registration Statement, the directors, officers, employees,
      Affiliates and agents of each such Holder and each person who controls any
      such Holder within the meaning of either the Securities Act or the
      Exchange Act against any and all losses, claims, damages or liabilities,
      joint or several, to which they or any of them may become subject under
      the Securities Act, the Exchange Act or other federal or state statutory
      law or regulation, at common law or otherwise, insofar as such losses,
      claims, damages or liabilities (or actions in respect thereof) arise out
      of or are based upon any untrue statement or alleged untrue statement of a
      material fact contained in the Resale Registration Statement or in any
      amendment thereof, in each case at the time such became effective under
      the Securities Act, or in any preliminary Prospectus or the Prospectus, or
      in any amendment thereof or supplement thereto, or arise out of or are
      based upon the omission or alleged omission to state therein a material
      fact required to be stated therein or necessary to make the statements
      therein (in the case of any preliminary Prospectus or the Prospectus, in
      the light of the circumstances under which they were made) not misleading,
      and agrees to reimburse each such indemnified party, as incurred, for any
      legal or other expenses reasonably incurred by it in connection with
      investigating or defending any such loss, claim, damage, liability or
      action; provided, however, that the Company will not be liable in any such
      case to the extent that any such loss, claim, damage or liability arises
      out of or is based upon any such untrue statement or alleged untrue
      statement or omission or alleged omission made therein in reliance upon
      and in conformity with written information furnished to the Company by or
      on behalf of the party claiming indemnification specifically for inclusion
      therein. This indemnity agreement shall be in addition to any liability
      that the Company may otherwise
have.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Each Holder of securities covered
      by the Resale Registration Statement severally and not jointly agrees to
      indemnify and hold harmless the Company, each of its directors, each of
      its officers who signs the Resale Registration Statement and each person
      who controls the Company within the meaning of either the Securities Act
      or the Exchange Act, to the same extent as the foregoing indemnity from
      the Company to each such Holder, but only with reference to information
      relating to such Holder furnished to the Company by or on behalf of such
      Holder specifically for inclusion in the documents referred to in the
      foregoing indemnity. This indemnity agreement shall be acknowledged by
      each Notice Holder that is not a Subscriber in such Notice Holder's Notice
      and Questionnaire and shall be in addition to any liability that any such
      Notice Holder may otherwise
have.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Promptly after receipt by an
      indemnified party under this Section 7 of notice of the commencement of
      any action, such indemnified party will, if a claim in respect thereof is
      to be made against the indemnifying party under this Section 7, notify the
      indemnifying party in writing of the commencement thereof; but the failure
      so to notify the indemnifying party (i) will not relieve it from liability
      under paragraph (a) or (b) above unless such failure results in the
      forfeiture by the indemnifying party of substantial rights and defenses or
      otherwise materially prejudices the indemnifying party; and (ii) will not,
      in any event, relieve the indemnifying party from any obligations to any
      indemnified party other than the indemnification obligation provided in
      paragraph (a) or (b) above. The indemnifying party shall be entitled to
      appoint counsel (including local counsel) of the indemnifying party's
      choice at the indemnifying party's expense to represent the indemnified
      party in any action for which indemnification is sought (in which case the
      indemnifying party shall not thereafter be responsible for the fees and
      expenses of any separate counsel, other than local counsel if not
      appointed by the indemnifying party, retained by the indemnified party or
      parties except as set forth below); provided, however, that such counsel
      shall be reasonably satisfactory to the indemnified party. Notwithstanding
      the indemnifying party's election to appoint counsel (including one local
      counsel) to represent the indemnified party in an action, the indemnified
      party shall have the right to employ separate counsel (including local
      counsel), and the indemnifying party shall bear the reasonable fees, costs
      and expenses of such separate counsel if (i) the use of counsel chosen by
      the indemnifying party to represent the indemnified party would present
      such counsel with a conflict of interest; (ii) the actual or potential
      defendants in, or targets of, any such action include both the indemnified
      party and the indemnifying party and the indemnified party shall have
      reasonably concluded that there may be legal defenses available to it
      and/or other indemnified parties that are different from or additional to
      those available to the indemnifying party; (iii) the indemnifying party
      shall not have employed counsel reasonably satisfactory to the indemnified
      party to represent the indemnified party within a reasonable time after
      notice of the institution of such action; or (iv) the indemnifying party
      shall authorize the indemnified party to employ separate counsel at the
      expense of the indemnifying party. An indemnifying party will not, without
      the prior written consent of the indemnified parties, settle or compromise
      or consent to the entry of any judgment with respect to any pending or
      threatened claim, action, suit or proceeding in respect of which
      indemnification or contribution may be sought hereunder (whether or not
      the indemnified parties are actual or potential parties to such claim or
      action) unless such settlement, compromise or consent includes an
      unconditional release of each indemnified party from all liability arising
      out of such claim, action, suit or
  proceeding.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (d)

            	
              If the indemnification to which an
      indemnified party is entitled under this Section 7 is for any reason
      unavailable to or insufficient although applicable in accordance with its
      terms to hold harmless an indemnified party in respect of any losses,
      liabilities, claims, damages or expenses referred to therein, then each
      indemnifying party shall contribute to the aggregate amount of such
      losses, liabilities, claims, damages and expenses incurred by such
      indemnified party, as incurred, in such proportion as is appropriate to
      reflect the relative fault of the indemnifying party or parties on the one
      hand and of the indemnified party on the other hand in connection with the
      statements or omissions which resulted in such losses, liabilities,
      claims, damages or expenses, as well as any other relevant equitable
      considerations.

            

    

     

    The relative fault of the Company on the
one hand and the Holders of the Registrable Securities or the Subscribers on the
other hand shall be determined by reference to, among other things, whether any
such untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the
Company or by the Holder of the Registrable Securities or the Subscribers and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.

     

    The parties hereto agree that it would
not be just and equitable if contribution pursuant to this Section 7(d) were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this
Section 7(d). The aggregate amount of losses, liabilities, claims, damages, and
expenses incurred by an indemnified party and referred to above in this Section
7(d) shall be deemed to include any out-of-pocket legal or other expenses
reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue or alleged untrue statement or omission or alleged
omission.

     

    Notwithstanding the provisions of this
Section 7, neither the Holder of any Registrable Securities nor the Subscribers
shall be required to indemnify or contribute any amount in excess of the amount
by which the proceeds received from the sale of the Registrable Securities by
such Holder of Registrable Securities exceeds the amount of any damages that
such Holder of Registrable Securities or the Subscribers has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.

     

    No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    For purposes of this Section 7(d), each
person, if any, who controls the Subscribers or any Holder of Registrable
Securities within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act shall have the same rights to contribution as the
Subscribers or such Holder, and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act shall have the same rights to contribution as the
Company.

     

    
      	
               
      

            	
              (e)

            	
              The provisions of this Section 7
      shall remain in full force and effect, regardless of any investigation
      made by or on behalf of any Holder or the Company or any of the
      indemnified persons referred to in this Section 7, and shall survive the
      sale by a Holder of Registrable Securities covered by the Resale
      Registration Statement.

            

    

     

    
      	
              SECTION 8.

            	
              Miscellaneous

            

    

     

    
      	
               
      

            	
              (a)

            	
              No
      Conflicting Agreements. The Company is not, as of the
      date hereof, a party to, nor shall it, on or after the date of this
      Agreement, enter into, any agreement with respect to the Company's
      securities that conflicts with the rights granted to the Holders of
      Registrable Securities in this Agreement. The Company represents and
      warrants that the rights granted to the Holders of Registrable Securities
      hereunder do not in any way conflict with the rights granted to the
      holders of the Company's securities under any other
      agreements.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Amendments
      and Waivers. The
      provisions of this Agreement, including the provisions of this sentence,
      may not be amended, modified or supplemented, and waivers or consents to
      departures from the provisions hereof may not be given, unless the Company
      has obtained the written consent of Holders of a majority of the then
      outstanding Registrable Securities. Notwithstanding the foregoing, a
      waiver or consent to depart from the provisions hereof with respect to a
      matter that relates exclusively to the rights of Holders of Registrable
      Securities whose securities are being sold pursuant to a Registration
      Statement and that does not directly or indirectly affect the rights of
      other Holders of Registrable Securities may be given by Holders of at
      least a majority of the Registrable Securities being sold by such Holders
      pursuant to such Registration Statement; provided, that the provisions of
      this sentence may not be amended, modified, or supplemented except in
      accordance with the provisions of the immediately preceding sentence. Each
      Holder of Registrable Securities outstanding at the time of any such
      amendment, modification, supplement, waiver or consent or thereafter shall
      be bound by any such amendment, modification, supplement, waiver or
      consent effected pursuant to this Section 8(b), whether or not any notice,
      writing or marking indicating such amendment, modification, supplement,
      waiver or consent appears on the Registrable Securities or is delivered to
      such Holder.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Notices. All notices and other
      communications provided for or permitted hereunder shall be made in
      writing by hand delivery, by telecopier, by courier guaranteeing overnight
      delivery or by first-class mail, return receipt requested, and shall be
      deemed given (i) when made, if made by hand delivery, (ii) upon
      confirmation, if made by telecopier, (iii) one (1) Business Day after
      being deposited with such courier, if made by overnight courier, or (iv)
      on the date indicated on the notice of receipt, if made by first-class
      mail, to the parties as
follows:

            

    

     

    if to a Notice Holder, at the most
current address given by such Holder to the Company in a Notice and
Questionnaire or any amendment thereto;

     

    if to the Company,
to:

     

    Apollo Gold
Corporation

    5655 S. Yosemite Street, Suite
200

    Greenwood Village, CO
80111-3220

    Facsimile: (303)
524-3280

    Attention: Chief Financial
Officer

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    with a copy to:

     

    Davis Graham & Stubbs
LLP

    1550 Seventeenth Street, Suite
500

    Denver, Colorado
80202

    Facsimile No. (303)
893-1379

     

    or to such other address as such person
may have furnished to the other persons identified in this Section 8(c) in
writing in accordance herewith.

     

    
      	
               
      

            	
              (d)

            	
              Approval
      of Holders. Whenever
      the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held
      by the Company or its Affiliates (other than the Subscribers or subsequent
      Holders of Registrable Securities if such subsequent Holders are deemed to
      be such Affiliates solely by reason of their holdings of such Registrable
      Securities) shall not be counted in determining whether such consent or
      approval was given by the Holders of such required
      percentage.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Successors
      and Assigns. This
      Agreement shall inure to the benefit of and be binding upon the successors
      and assigns of each of the parties hereto and, without requiring any
      express assignment, shall inure to the benefit of and be binding upon
      transferees of each Holder of any Registrable Securities; provided, that
      nothing herein shall be deemed to permit any assignment, transfer of other
      disposition of Registrable Securities in violation of the terms of the
      Subscription Agreements. If any transferee of any Holder shall acquire
      Registrable Securities in any manner, whether by operation of law or
      otherwise, such Registrable Securities shall be subject to all of the
      terms of this Agreement and by taking and holding such Registrable
      Securities such person shall be conclusively deemed to have agreed to be
      bound by and to perform all of the terms and provisions of this
      Agreement.  Each transferee of the Registrable Securities is not
      entitled to resell its Registrable Securities on the Resale Registration
      Statement unless and until it has complied with the provisions of Section
      2(d) hereof.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Counterparts. This Agreement may be executed
      in any number of counterparts and by the parties hereto in separate
      counterparts, each of which when so executed shall be deemed to be
      original and all of which taken together shall constitute one and the same
      agreement.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Headings. The headings in this Agreement
      are for convenience of reference only and shall not limit or otherwise
      affect the meaning hereof.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Governing
      Law. THIS AGREEMENT
      SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF COLORADO.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Severability. If any term, provision, covenant
      or restriction of this Agreement is held to be invalid, illegal, void or
      unenforceable, the remainder of the terms, provisions, covenants and
      restrictions set forth herein shall remain in full force and effect and
      shall in no way be affected, impaired or invalidated thereby, and the
      parties hereto shall use their reasonable best efforts to find and employ
      an alternative means to achieve the same or substantially the same result
      as that contemplated by such term, provision, covenant or restriction, it
      being intended that all of the rights and privileges of the parties hereto
      shall be enforceable to the fullest extent permitted by
      law.

            

    

     

    
      	
               
      

            	
              (j)

            	
              Entire
      Agreement. This
      Agreement is intended by the parties hereto as a final expression of their
      agreement and is intended to be a complete and exclusive statement of the
      agreement and understanding of the parties hereto in respect of the
      subject matter contained herein and the registration rights granted by the
      Company with respect to the Registrable Securities. Except as provided in
      the Subscription Agreements, there are no restrictions, promises,
      warranties or undertakings, other than those set forth or referred to
      herein, with respect to the registration rights granted by the Company
      with respect to the Registrable Securities. This Agreement supersedes all
      prior agreements and undertakings among the parties hereto with respect to
      such registration rights.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (k)

            	
              Termination. This Agreement and the
      obligations of the parties hereunder shall terminate upon the earlier to
      occur of (i) the expiration of the Effectiveness Period or (ii) such time
      as there shall be no Registrable
  Securities.

            

    

     

    [REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK. SIGNATURE PAGE TO FOLLOW]

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the parties have
executed this Registration Rights Agreement as of the date first written
above.

     

    
      
        	 	      
                APOLLO GOLD
      CORPORATION

              	 
	 	 	 	 
	
              	
                By:
      

              	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

      

      
         

        
          
            	 	
                    HAYWOOD SECURITIES
      INC.

                  	 
	 	 	 	 
	
                  	
                    By:
      

                  	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

          

           

          
            
              
                	 	
                        [Name of
      Subscriber]

                      	 
	 	 	 	 
	
                      	
                        By:
      

                      	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

              

            

          

        

      

    

    

    
      
         

      

      
        12

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