Document:

Unassociated Document

    EXHIBIT
10.1

    

    AMENDMENT
NO. 1 TO

    LETTER
OF INTENT

    

    

    THIS AMENDMENT NO. 1 TO LETTER OF
INTENT is made and entered into as of the 18 day of March, 2010 (this
“Amendment”) by and
among Apollo Gold Corporation, a corporation incorporated under the laws of the
Yukon Territory (“Apollo”) and Linear Gold
Corp., a corporation incorporated under the laws of Canada (“Linear”).

    

    RECITALS

    

    WHEREAS, Apollo and Linear
entered into a letter of intent dated as of March 9, 2010 (the “Letter of
Intent”);

    

    AND WHEREAS, the parties
hereto desire to amend the Letter of Intent, as described below, by entering
into this Amendment;

    

    AND WHEREAS capitalized terms
not otherwise defined herein have the same meanings ascribed to such terms in
the Letter of Intent);

    

    NOW THEREFORE the parties, in
consideration of the premises and of the mutual agreements, representations,
warranties, provisions and covenants herein contained, hereby agree as
follows:

    

    1.           Section
2(b) is hereby deleted in its entirety and replaced with the
following:

    

    
      	
               
      

            	
              (b)

            	
              the
      Board of Directors of Apollo upon closing shall consist of seven (7)
      directors appointed as follows:  three (3) current Apollo board
      members or Apollo nominees; three (3) Linear nominees (including Wade Dawe
      who shall be appointed Chairman of the Board of Directors); and one (1)
      nominee who shall be a technical person mutually agreed upon by Apollo and
      Linear.

            

    

    

    2.           Section
3 is hereby amended by deleting the last sentence thereof and replacing it with
the following:

    

    
      	
               
      

            	
              The
      Private Placement will close on or about March 19, 2010, subject to the
      conditions set out therein.

            

    

    

    3.           Section
6 is hereby deleted in its entirety and replaced with the
following:

    

    
      	
               
      

            	
              6.

            	
              Upon
      completion of the Arrangement, (i) R. David Russell shall resign as
      President and Chief Executive Officer of Apollo and, subject to delivery
      of customary releases, shall be paid all termination and other amounts
      owing pursuant to his employment agreement (which the parties hereby agree
      shall not exceed approximately US$1.7m in the aggregate); Stock Options
      will remain in effect until one year after the merger is approved; and
      (ii) Wade Dawe shall be appointed President and Chief Executive Officer of
      Apollo.

            

    

    

    Management
terminations, buyouts and severance payments will be effected by Linear and paid
out to Linear management and staff not continuing with the merged Company on
closing of the Arrangement in accordance with management contracts and common
law amounts expected not to exceed a total of approximately
CAD$1.7m.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.           The
terms and conditions set forth in this Amendment shall be deemed a part of the
Letter of Intent for all purposes.  In the event of a conflict or
inconsistency between the terms and conditions set forth in this Amendment and
those set forth in the Letter of Intent, the terms and conditions of this
Amendment shall prevail.  Except as provided in this Amendment, the
Letter of Intent shall remain unchanged and in full force and
effect.  This Amendment, when read in conjunction with the Letter of
Intent, constitutes the entire agreement among the parties thereto with respect
to the subject matter contained in this Amendment, and supersedes and replaces
all prior agreements, whether written or oral, with respect to such subject
matter.  This Amendment shall not constitute a waiver, amendment or
modification of any other provision of the Letter of Intent not expressly
referred to herein.  From and after the date hereof, all references
made in the Letter of Intent to “this letter of intent” shall be deemed
references to the Letter of Intent as amended by this Amendment.

    

    5.           This
Amendment may be executed in any number of counterparts, each of which shall be
an original, and all of which, when taken together, shall constitute one
agreement.  Delivery of an executed signature page of this Amendment
by facsimile transmission or as an attachment to an electronic mail message in
“pdf” or similar format shall be effective as delivery of a manually executed
counterpart hereof.

    

     

    [Signature
Page Follows on Next Page]

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, each of
the parties hereto has caused this Amendment to be executed as of the date first
above written.

     

    
      
        	 	APOLLO
      GOLD CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ R. David Russell	 
	 	Name:
      	      
                R.
      David Russell

              	 
	 	Title:   	President
      and CEO	 
	 	 	 	 

      

       

      
        
          	 	LINEAR GOLD
      CORP.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Keith Abriel	 
	 	Name:
      	Keith
      Abriel	 
	 	Title:   	VP and CFO	 
	 	 	 	 

        

      

       

      
        
           

        

        
          
            [Signature
Page to the Amendment No. 1 to the Share Letter of
Intent]EXHIBIT
10.7

     

    NEITHER
THE ISSUANCE AND SALE OF THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS
CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR
SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (I) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (II) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE
COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.  NOTWITHSTANDING
THE FOREGOING, THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THIS NOTE.  ANY
TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE.
 THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE
SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET
FORTH ON THE FACE HEREOF PURSUANT TO THIS NOTE.

    

    EASTERN
RESOURCES, INC.

    10%
CONVERTIBLE PROMISSORY NOTE

    

    
      
        	
                Issuance
      Date:  January 29, 2010

              	
                Principal
      Amount: U.S. $70,000.00

              

      

    

    

    FOR VALUE
RECEIVED, Eastern
Resources, Inc. a Delaware corporation (the "Company"), hereby promises to
pay to PARAMOUNT STRATEGY
CORP. or registered assigns ("Holder") the amount set out
above as the Original Principal Amount (as reduced pursuant to the terms hereof
pursuant to redemption, conversion or otherwise, the "Principal") when due, whether
upon the Maturity Date (as defined below), acceleration, redemption or otherwise
(in each case in accordance with the terms hereof) and to pay interest at the
rate of 10.00% per annum  ("Interest") from the date set
out above as the Issuance Date (the "Issuance Date") until the same
becomes due and payable on the Maturity Date.

    

    1.           PAYMENTS OF PRINCIPAL;
MATURITY.  Payment of principal and interest due on this Note is
payable no later than July 28, 2011 (the “Maturity Date”); provided, however,
that each of the parties hereto may mutually agree to extend the term of this
Note beyond the Maturity Date.

    

    2.           PREPAYMENT.  The
Company and the Holder understand and agree that the principal amount of the
Note and any interest accrued thereon be prepaid by the Company at any time
without penalty.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    3.           CONVERSION OF NOTE.
 

    

    The
Holder shall have the right to convert the principal and any interest due under
this Note into Shares of the Company's Common Stock, $.001 par value per share
(“Common Stock”) as set
forth below.

     

    3.1.          Conversion into the
Company's Common Stock.

    

    (a)           The
Holder shall have the right from and after the Issuance Date and then at any
time until this Note is fully paid, to convert any outstanding and unpaid
principal portion of this Note, and accrued interest, at the election of the
Holder (the date of giving of such notice of conversion being a "Conversion Date") into fully
paid and non-assessable shares of Common Stock as such stock exists on the date
of issuance of this Note, or any shares of capital stock of Company into which
such Common Stock shall hereafter be changed or reclassified, at the conversion
price as defined in Section 3.1(b) hereof
(the "Fixed Conversion
Price"), determined as provided herein.  Upon delivery to the
Company of a completed Notice of Conversion, a form of which is annexed hereto
as Exhibit A,
Company shall issue and deliver to the Holder within five (5) business days
after the Conversion Date (such fifth day being the “Delivery Date”) that number of
shares of Common Stock for the portion of the Note converted in accordance with
the foregoing.  The number of shares of Common Stock to be issued upon
each conversion of this Note shall be determined by dividing that portion of the
principal of the Note and interest, if any, to be converted, by the Conversion
Price.

    

    (b)           Subject
to adjustment as provided in Section 3.1(c)
hereof, the fixed conversion price per share shall be equal to $0.10 (“Fixed Conversion
Price”).

    

    (c)          
The Fixed Conversion Price and number and kind of shares or other securities to
be issued upon conversion determined pursuant to Section 3.1(a), shall
be subject to adjustment from time to time upon the happening of certain events
while this conversion right remains outstanding, as follows:

    

    A.           Merger, Sale of Assets,
etc.  If (A) the Company effects any merger
or  consolidation of the Company with or into another entity, (B) the
Company effects any sale of all or substantially all of its assets in one or a
series of related transactions,  (C) any tender offer or exchange
offer (whether by the Company or another entity) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for
other securities, cash or property, (D) the Company consummates a stock purchase
agreement or other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of arrangement) with one or
more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any "person"
or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the "beneficial owner" (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Company, or (F) the Company effects any reclassification of
the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or
property (in any such case, a "Fundamental  Transaction"), this
Note, as to the unpaid principal portion thereof and accrued interest thereon,
shall thereafter be deemed to evidence the right to convert into such number and
kind of shares or other securities and property as would have been issuable or
distributable on account of such Fundamental Transaction, upon or with respect
to the securities subject to the conversion right immediately prior to such
Fundamental Transaction.  The foregoing provision shall similarly
apply to successive Fundamental Transactions of a similar nature by any such
successor or purchaser.  Without limiting the generality of the
foregoing, the anti-dilution provisions of this Section shall apply to such
securities of such successor or purchaser after any such Fundamental
Transaction.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    B.           Reclassification,
etc.  If the Company at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes that may be issued or outstanding, this Note,
as to the unpaid principal portion thereof and accrued interest thereon, shall
thereafter be deemed to evidence the right to purchase an adjusted number of
such securities and kind of securities as would have been issuable as the result
of such change with respect to the Common Stock immediately prior to such
reclassification or other change.

    

    C.           Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

    

    D.           Share
Issuance.   So long as this Note is outstanding, if the
Company shall issue any Common Stock prior to the complete conversion or payment
of this Note, for a consideration per share that is less than the Fixed
Conversion Price that would be in effect at the time of such issue, then, and
thereafter successively upon each such issuance, the Fixed Conversion Price
shall be reduced to such other lower issue price.  For purposes of
this adjustment, the issuance of any security or debt instrument of the Company
carrying the right to convert such security or debt instrument into Common Stock
or of any warrant, right or option to purchase Common Stock shall result in an
adjustment to the Fixed Conversion Price upon the issuance of the
above-described security, debt instrument, warrant, right, or option and again
upon the issuance of shares of Common Stock upon exercise of such conversion or
purchase rights if such issuance is at a price lower than the then applicable
Fixed Conversion Price. Common Stock issued or issuable by the Company for no
consideration will be deemed issuable or to have been issued for $0.001 per
share of Common Stock.

    

    (d)          Whenever
the Conversion Price is adjusted pursuant to Section 3.1(c) above,
the Company shall promptly mail to the Holder a notice setting forth the
Conversion Price after such adjustment and setting forth a statement of the
facts requiring such adjustment.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (e)           During
the period the conversion right exists, Company will reserve from its authorized
and unissued Common Stock not less than an amount of Common Stock equal to 150%
of the amount of shares of Common Stock issuable upon the full conversion of
this Note.  Company represents that upon issuance, such shares will be
duly and validly issued, fully paid and non-assessable.  Company
agrees that its issuance of this Note shall constitute full authority to its
officers, agents, and transfer agents who are charged with the duty of executing
and issuing stock certificates to execute and issue the necessary certificates
for shares of Common Stock upon the conversion of this Note.

    

    3.2           Method of
Conversion.  This Note may be converted by the Holder in whole
or in part as described in Section 3.1(a)
hereof.  Upon partial conversion of this Note, a new Note containing
the same date and provisions of this Note shall, at the request of the Holder,
be issued by the Company to the Holder for the principal balance of this Note
and interest which shall not have been converted or paid.

    

    3.3.          Maximum
Conversion.  The Holder shall not be entitled to convert on a
Conversion Date that amount of the Note in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number of shares
of Common Stock beneficially owned by the Holder and its affiliates on a
Conversion Date, (ii) any Common Stock issuable in connection with the
unconverted portion of the Note, and (iii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this provision is being made on a Conversion Date, which would result in
beneficial ownership by the Holder and its affiliates of more than 4.99% of the
outstanding shares of Common Stock of the Company on such Conversion
Date.  For the purposes of the provision to the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate conversions of 4.99%.  The Holder shall have the
authority and obligation to determine whether the restriction contained in this
Section 3.3
will limit any conversion hereunder and to the extent that the Holder determines
that the limitation contained in this Section applies, the determination of
which portion of the Notes are convertible shall be the responsibility and
obligation of the Holder.  The Holder may waive the conversion
limitation described in this Section 3.3, in whole
or in part, upon and effective after 61 days prior written notice to the Company
to increase such percentage to up to 9.99%.

    

    4.           EVENT OF
DEFAULT.  Failure by the Company to make payment pursuant to
Section 1 hereof shall constitute an event of default (“Event of
Default”).  In an Event of Default, the Holder shall be entitled to
all legal remedies available to it to pursue collections, and the Company shall
bear all reasonable costs of collection, including but not limited to necessary
attorneys’ fees.

    

    5.           NO
WAIVER.  No failure or delay by the Holder in exercising any
right, power or privilege under this Note shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies herein provided shall be
cumulative and not exclusively of any rights or remedies provided by applicable
law.  No course of dealing between the Company and the Holder shall
operate as a waiver of any rights by the Holder.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    6.   NOTICES;
PAYMENTS.

    

    (a)           Notices.
 Whenever notice is required to be given under this Note, unless otherwise
provided herein, such notice shall be given in accordance with the Securities
Purchase Agreement.  Unless a specific notice is otherwise required
under this Note, the Company shall provide the Holder with prompt written notice
of all actions taken pursuant to this Note, including in reasonable detail a
description of such action and the reason therefore.

    

    (b)           Payments.
 Except as otherwise provided in this Note, whenever any payment of cash is
to be made by the Company to the Holder, such payment shall be made in lawful
money of the United States of America by a check drawn on the account of the
Company and sent via overnight courier service to the Holder at such address as
previously provided to the Company in writing (which address shall be set forth
in the Securities Purchase Agreement); provided that the Holder may elect to
receive a payment of cash via wire transfer of immediately available funds by
providing the Company with prior written notice setting out such request and the
Holder's wire transfer instructions.  Whenever any amount expressed to be
due by the terms of this Note is due on any day which is not a Business Day, the
same shall instead be due on the next succeeding day which is a Business
Day.

    

    7.           TRANSFER.  The
Holder acknowledges and agrees that this Note may only be offered, sold,
assigned or transferred by the Holder if consented to in writing by the
Company.

    

    8.           CONSTRUCTION;
HEADINGS.  This Note shall be deemed to be jointly drafted by the
Company and the Holder and shall not be construed against any person as the
drafter hereof.

    The
headings of this Note are for convenience of reference and shall not form part
of, or affect the interpretation of, this Note.

    

    9.           SEVERABILITY.  In
the event that one or more of the provisions of this Note shall for any reasons
be held invalid, illegal, or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Note, but this Note shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.

    

    10.         GOVERNING
LAW.  This Note and the rights and obligations of the Company
and the Holder shall be governed by and construed in accordance with the laws of
the State of New York.

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the
Issuance Date set out above.

     

    
      
        
          
            
              	
                      EASTERN
      RESOURCES, INC.

                    	 
	 
      	 
	
                      By:

                    	
                      /s/ Thomas H. Hanna, Jr.

                    	  
      
	
                      Name: Thomas
      H. Hanna, Jr.

                    	 
	
                      Title:   President
      & Chief Executive Officer

                    	 

            

          

        

      

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

     

    NOTICE OF
CONVERSION

     

    (To
be executed by the Holder in order to convert the Note)

     

    TO:

    

    The
undersigned hereby irrevocably elects to convert $__________________________ of
the principal amount of the above Note into Shares of Common Stock of Eastern
Resources, Inc., according to the conditions stated therein, as of the
Conversion Date written below.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          	
                                                                                  Conversion
      Date:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Applicable
      Conversion Price:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Signature:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Name:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Address:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Amount
      to be converted:

                                                                                	 	
                                                                                  $

                                                                                	 
      
	 
      	 	 
      	 
      
	
                                                                                  Amount
      of Note unconverted:

                                                                                	 	
                                                                                  $

                                                                                	 
      
	 
      	 	 
      	 
      
	
                                                                                  Conversion
      Price per Unit:

                                                                                	 	
                                                                                  $

                                                                                	 
      
	 
      	 	 
      	 
      
	
                                                                                  Number
      of shares of Common Stock and Warrants to be issued including as payment
      of interest, if applicable:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Please
      issue the shares of Common Stock and Warrants in the following name and to
      the following address:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Issue
      to the following account of the Holder:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Authorized
      Signature:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Name:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Title:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Phone
      Number:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Broker
      DTC Participant Code:

                                                                                	 	 
      	 
      
	 
      	 	 
      	 
      
	
                                                                                  Account
      Number:

                                                                                	 	 
      	 
      

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]