Document:

EXHIBIT 10.3

 

APOLO
GOLD & ENERGY, INC.

Subscription
Agreement for Shares

Pursuant
to Regulation S of the Securities Act of 1933

 

Between

 

Apolo
Gold & Energy, Inc.

a
Company incorporated pursuant to the laws of the State of Nevada

(the
“Company”)

 

Party
of the First Part and;

 

______________________________________

Name
of the Subscriber

 

______________________________________

Official
Capacity or Title

if
the Subscriber is not an individual

 

Party
of the Second Part

 

(Collectively
the “Parties”)

 

The
undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to purchase from Apolo Gold & Energy,
Inc. (the Company”) that number of common shares (the “Shares”) set out below at a price of $0.20 per share
in United States Funds.

 

The
Subscriber agrees to be bound by the terms and conditions set forth in the attached “Terms and Conditions of Subscription
for Shares”. This is an Offering under Regulation S of US Securities laws.

 

The
Offering: Apolo Gold & Energy, Inc. is offering to sell up to 5,000,000 Common Shares of the Company at a price of $0.20
per share.

 

The
Company’s authorized capital consists of _____________ Common Shares of which _________________ Common Shares are issued
and outstanding. If this Offering is fully subscribed, there will be a total of ____________ Common Shares issued and outstanding.
The Company has no other class of shares.

 

	Number
    of Shares:	5
    Million ((5,000,000) common shares at a price of US$0.20 Per Share
	 	 
	Aggregate
    Price:	One
    Million Dollars in United States Funds

 

	 	____

        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

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Article
1. – INTERPRETATION

 

Definitions

 

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:

 

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

 

Closing:
shall have the meaning ascribed to such term in Section 4.

 

Closing
Date: shall have the meaning ascribed to such term in Section 4.

 

Closing:
shall have the meaning ascribed to such term in Section 4.

 

Common
Shares: means the common shares of the Company.

 

Company:
means Apolo Gold & Energy, Inc.

 

Offering:
means the offering of Shares pursuant to this Subscription Agreement.

 

Offering
Jurisdictions: means jurisdictions outside of the United States as the Company may decide.

 

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.

 

SEC:
means the United States Securities and Exchange Commission.

 

Securities
Laws: means the securities laws, regulations, rules, rulings and orders of the Offering Jurisdictions, the applicable policy
statements issued by the securities regulators in such province.

 

Subscriber:
means the subscriber for Shares and, if applicable, means the beneficial purchaser for whom such person is acting hereunder, as
set out on the face page of this Subscription Agreement.

 

Subscription
Agreement: means this subscription agreement (including any attached schedules).

 

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

 

Shares:
means the shares of common stock of Apolo Gold & Energy, Inc. offered pursuant to the Offering at a price of US $0.20
per share.

 

U.S.
Person: as that term is defined 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.

 

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 Company and vice versa.

 

Currency

 

Unless
otherwise specified, all dollar amounts in this Subscription Agreement, including the symbol “$”, are expressed
in US dollars.

 

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.

 

	 	____

        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

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Article
2. SCHEDULES

 

2.1
Description of Schedules

 

The
following Schedule is attached to and incorporated in this Subscription Agreement by reference and deemed to be a part hereof:

 

	Schedule
    A	Accredited
    Investor Certification
	 	 
	Schedule
    B	Company
    wire transfer information

 

Article
3. SUBSCRIPTION AND DESCRIPTION OF SHARES

 

3.1
Subscription for the Shares

 

The
Subscriber hereby confirms its irrevocable subscription for and offer to purchase the Shares from the Company, on and subject
to the terms and conditions set out in this Subscription Agreement, for the Subscription Price of US$0.20 per Share, which is
payable as described in Article 4.

 

3.2
Acceptance and Rejection of Subscription by the Company

 

The
Subscriber acknowledges and agrees that the Company reserves the right, in its absolute discretion, to reject this subscription
for Shares, in whole or in part, at any time prior to the Closing. If this subscription is rejected in whole, any checks or other
forms of payment representing the Subscription Price will be promptly returned to the Subscriber without interest or deduction.
If this subscription is accepted only in part, a check representing any refund of the Subscription Price for that portion of the
subscription for the Shares which is not accepted, will be promptly delivered to the Subscriber without interest or deduction.

 

If,
prior to the Closing, the terms and conditions contained in this Subscription Agreement (other than delivery by the Company to
the Subscriber of certificates representing the Shares) have not been complied with, the Company and the Subscriber will have
no further obligations under this Subscription Agreement.

 

The
proceeds are not held in trust, as there is no minimum. Closings may occur from time to time as the subscription funds are received.

 

Article
4. CLOSING

 

4.1
Closing

 

Closing
takes place upon delivery to the Company of a properly executed Subscription Agreement together with payment of the subscription
price by wire transfer or bank draft given to a company official for the account shown in Schedule B, and acceptance, by Company
of the Subscription Agreement.

 

	 	____

        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

    	Page 3 of 12

    	 

    

 

4.2
Conditions of Closing

 

The
Subscriber acknowledges and agrees that the obligations of the Company 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 as if made at and as of the Closing and the fulfillment of the following additional
conditions as soon as possible and in any event not later than the Closing:

 

	 	(a)	The Subscriber having properly
completed, signed and delivered this Subscription Agreement via email or fax to:

 

__________________,
President, Director and Signing Authority

__________________

__________________

 

Telephone:
______________

Fax:
___________________

Email:
__________________

 

Article
5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY

 

5.1
Representations, Warranties and Covenants of the Company

 

By
execution of this Subscription Agreement, the Company hereby represents warranties and covenants with the Subscriber as follows
and acknowledges that the Subscriber is relying on such representations, warranties and covenants in connection with the transactions
contemplated herein:

 

	 	(a)	the
    Company is validly constituted and subsisting under the laws of the state of Nevada;
	 	 	 
	 	(b)	the
    Company will promptly comply with all filings and other requirements under all applicable Securities Laws; and specifically
    with respect to the Common Shares purchased in this offering, the Company will maintain currency in its reporting obligations
    with respect to its SEC filings so as to enable the unrestricted sale of the Common Shares in the marketplace. This undertaking
    may be satisfied by the operation of exemptive provisions of the securities acts that allow for the removal of any restrictions
    in a sale conducted in accordance with those provisions;
	 	 	 
	 	(c)	at
    the Closing, the Company will have taken all necessary steps to validly create and issue the Common Shares;
	 	 	 
	 	(d)	the
    Company has the requisite corporate authority to enter into this Agreement and to carry out its obligations hereunder;
	 	 	 
	 	(e)	The
    execution and delivery of this Agreement and the consummation by the Company of the transactions contemplated hereby have
    been duly authorized by the Company’s Board of Directors and no other corporate proceedings on the part of the Company are
    or will be necessary to authorize this Agreement and the transactions contemplated hereby;
	 	 	 
	 	(f)	This
    Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the
    Company enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
    reorganization, moratorium and other laws relating to or affecting creditors’ rights generally and to general principles of
    equity;

 

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        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

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	 	(g)	neither
    the execution and delivery of this Agreement by the Company, the consummation by the Company of the transactions contemplated
    hereby nor compliance by the Company with any of the provisions hereof will: (i) violate, conflict with, or result in breach
    of any provision of, require any consent, approval or notice under, or constitute a default (or an event which, with notice
    or lapse of time or both, would constitute a default) or result in a right of termination or acceleration under, or result
    in a creation of any lien, security interest, charge or encumbrance upon any of the properties or assets of the Company under,
    any of the terms, conditions or provisions of (x) the articles or bylaws of the Company, or (y) any note, bond, mortgage,
    indenture, loan agreement, deed of trust, agreement, lien, contract or other instrument or obligation to which the Company
    is a party; or (ii) violate any judgment, ruling, order, writ, injunction, determination, award, decree, statute, ordinance,
    rule or regulation applicable to the Company; or (iii) cause a suspension or revocation of any authorization for the consent,
    approval or license currently in effect which would have a material adverse effect on the business, operations or financial
    condition of the Company.

 

ARTICLE
6. COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

 

6.1
Acknowledgements, Representations, Warranties and Covenants of the Subscriber

 

The
Subscriber hereby represents and warrants to, and covenants with, the Company as follows and acknowledges that the Company is
relying on such representations, warranties and covenants in connection with the transactions contemplated herein:

 

	 	(a)	The
    Subscriber is a resident in the jurisdiction set out on the face page of this Subscription Agreement. Such address was not
    created and is not used solely for the purpose of acquiring the Shares and the Subscriber and any beneficial person was solicited
    to purchase the Shares in such jurisdiction.
	 	 	 
	 	(b)	The
    Subscriber has properly completed, executed and delivered to the Company the certificate (dated as of the date hereof) set
    forth in Schedule “A” and the information contained therein is true and correct.
	 	 	 
	 	(c)	The
    representations, warranties and covenants contained in Schedule “A”, will be true and correct both as of the date
    of execution of this Subscription Agreement and as of the Closing.
	 	 	 
	 	(d)	The
    Subscriber is neither a U.S. Person nor subscribing for the Shares for the account of a U.S. Person or for resale in the United
    States and the Subscriber confirms that the Shares have not been offered to the Subscriber in the United States and that this
    Subscription Agreement has not been signed in the United States.
	 	 	 
	 	(e)	The
    Subscriber will not offer, sell or otherwise dispose of the Shares in the United States or to a U.S. Person unless the Company
    has consented to such offer, sale or distribution and such offer, sale or disposition is made in accordance with an exemption
    from the registration requirements under the U.S. Securities Act and the securities laws of all applicable states of the United
    States or the SEC has declared effective a registration statement in respect of such securities.
	 	 	 
	 	(f)	The
    Subscriber is authorized to execute and deliver this Subscription Agreement.
	 	 	 
	 	(g)	The
    Subscriber is subscribing for the 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 resale or distribution of all or any of the Shares.

 

	 	____

        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

    	Page 5 of 12

    	 

    

 

	 	(h)	The
    Subscriber is solely responsible for obtaining such tax and legal advice, as it considers appropriate in connection with the
    execution, delivery and performance by it of this Subscription Agreement and the transactions contemplated hereunder.
	 	 	 
	 	(i)	If
    required by applicable securities legislation, policy or order or by the Company, the Subscriber will execute, deliver and
    file or assist the Company in filing such reports, undertakings and other documents as may be required by any securities commission
    or other regulatory authority.
	 	 	 
	 	(j)	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 the Shares was not based upon, and the Subscriber has not relied upon, any verbal or written representations as to fact
    made by or on behalf of the Company.
	 	 	 
	 	(k)	The
    Subscriber acknowledges that no prospectus or registration statement has been filed by the Company with any of the applicable
    securities regulatory authorities in connection with the sale and delivery of the Shares to the Subscriber; such sale and
    delivery is conditional upon such sale being exempt from the requirements to deliver the Subscriber a prospectus and as a
    consequence of acquiring securities pursuant to this exemption, (i) the Subscriber may not receive information that would
    otherwise apply under applicable securities laws, (ii) the Company is relieved from certain obligations that would otherwise
    apply under applicable securities laws, and (iii) certain protections, rights and remedies provided by applicable securities
    laws, including statutory rights of rescission or damages, are not available to the Subscriber;
	 	 	 
	 	(l)	The
    subscription for the Shares has not been made through or as a result of, and the distribution of the Shares is not being accompanied
    by any advertisement, including without limitation in printed public media, radio, television or telecommunications, including
    electronic display or general solicitation.
	 	 	 
	 	(m)	There
    are risks associated with the purchase of and investment in the Shares and the Subscriber is knowledgeable, sophisticated
    and experienced in business and financial matters and is capable of evaluating the merits and risks of an investment in the
    Shares, fully understands the restrictions on resale of the Shares and is able to bear the economic risk of an investment
    in such securities.
	 	 	 
	 	(n)	The
    Shares shall be subject to statutory resale restrictions under the Securities Laws of the jurisdiction in which the Subscriber
    resides and under other applicable securities laws, and the Subscriber covenants that it will not resell the Shares except
    in compliance with such laws.
	 	 	 
	 	(o)	The
    certificates representing the Shares will bear, as of the Closing Date, legends substantially in the following form and with
    the necessary information inserted:

 

“The
shares represented by this certificate have been acquired pursuant to a transaction effected in reliance upon Regulation S of
the Securities and Exchange Act of 1933, and have not been the subject of a Registration Statement under the Securities Act of
1933, as amended (the “Act”), or any state securities act. These securities may not be sold or otherwise transferred
in the absence of such registration or applicable exemption therefrom under the Act or any applicable state securities act, or
unless sold pursuant to Rule 144 under the Act.”

 

	 	____

        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

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	 	(q)	The
    Company is 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 Shares under applicable Securities Laws. The Subscriber
    undertakes to immediately notify the Company of any change in any statement or other information relating to the Subscriber
    set forth in such applicable Schedules, which takes place prior to the Closing.

 

The
Subscriber acknowledges that the Shares have not been registered under the United States Securities Act of 1933, as amended, and
are being issued pursuant to Regulation S promulgated by the Securities and Exchange Commission relating to the limited offering
and sale of securities, and similar provisions under state securities laws and regulations, but will have rights to have the Common
Shares registered for purposes of enabling unrestricted trading in these securities at the culmination of a required holding period
from the date of Closing. He further acknowledges that legends will be placed on any certificates evidencing the securities included
in the Shares with respect to restrictions on distribution, transfer, resale, assignment or subdivision imposed by applicable
securities laws, until either the existence of an effective registration statement, or the availability of an exemption allows
for unrestricted trading in these securities.

 

The
Subscriber acknowledges and consents to the release by the Company of certain information regarding the Subscriber’s subscription,
including the Subscriber’s name, address, telephone number and registration instructions, the number of Shares purchased,
and, if applicable, information regarding beneficial ownership of or the principal of the Subscriber, in compliance with securities
regulatory policies to regulatory authorities in Offering Jurisdictions or to other authorities as required by law. The purpose
of the collection of the information is to ensure the Company and its advisors will be able to issue Shares to the Subscriber
in compliance with applicable securities laws and the instructions of the Subscriber and to obtain the information required to
be provided in documents required to be filed with securities regulatory authorities under applicable securities laws and other
authorities as required by law. In addition, the Subscriber acknowledges and consents to the collection, use and disclosure of
all such personal information by regulatory authorities in accordance with their requirements, including the provision to third
party service providers, from time to time.

 

The
contact information for the officer of the Company who can answer questions about the collection of information by the Company
is as follows:

 

____________________

Telephone:
___________

Fax:
_________________

Email________________

 

6.2
Indemnity

 

The
Subscriber covenants to indemnify the Company and its officers, directors, employees and representatives against all losses, claims,
costs, expenses and changes or liability which they may suffer or incur, caused or arising from reliance upon or breach of the
representations, warranties, acknowledgements and covenants of the Subscriber contained herein and the Subscriber further agrees
that by accepting the Units, the Subscriber shall be representing and warranting that such representations, warranties, acknowledgements
and covenants are true as at the Closing with the same force and effect as if they had been made by the Subscriber at the Closing.

 

	 	____

        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

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Article
7. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

 

7.1
Survival of Representations, Warranties and Covenants of the Company

 

The
representations, warranties and covenants of the Company contained in this Subscription Agreement shall survive the Closing and,
notwithstanding such Closing or any investigation made with respect thereto, shall continue in full force and effect for a period
of two years from the Closing.

 

Article
8. MISCELLANEOUS

 

8.1
Further Assurances

 

Each
of the parties hereto upon the request of any of the other parties hereto, whether before or after the Closing, 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.

 

8.2
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 or email (with return acknowledgement), in the case of the Company,
to:

 

Apolo
Gold & Energy, Inc.

 

Telephone____________

Fax:
_________________

Email________________

 

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 or email,
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.

 

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.

 

8.3
Time of the Essence

 

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

 

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        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

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8.4
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.

 

8.5
Applicable Law

 

This
Subscription Agreement shall be construed and enforced in accordance with, and the laws of the State of Nevada and the laws of
the United States as applicable shall govern the rights of the parties therein. Any and all disputes arising under this Subscription
Agreement, whether as to interpretation, performance or otherwise, shall be subject to the exclusive jurisdiction of the courts
of the State of Nevada and each of the parties hereto hereby irrevocably attorns to the jurisdiction of the courts of such State.

 

8.6
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. This Subscription Agreement may not be amended or modified in any respect except by written instrument executed
by each of the parties hereto.

 

8.7
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 executed either in original or faxed
form and the parties adopt any signature received by a receiving fax machine as original signatures of the parties.

 

8.8
Assignment

 

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

 

8.9
Enurement

 

This
Subscription Agreement shall ensure 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.

 

9.
Entire Agreement: This Offer constitutes the entire agreement among the parties hereto with respect to the subject matter
hereof and may be amended only by a writing executed by all parties.

 

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        APLL

        Initials
	 	______

                                                 Subscriber’s
 Initials

 

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IN
WITNESS WHEREOF, the parties hereto have executed this Offer as of the date and year set forth below.

 

DATED
this _________ day of _________, 2013

 

	 
	Subscriber
    Signature
	 	 
	 
	Name
    of Subscriber (Please Print)
	 	 
	 
	Official
    Capacity or Title if the Subscriber is not an individual
	 	 
	 
	Name
    of individual whose signature appears above if different than the name of the Subscriber printed above
	 	 
	 
	Street
    Address	 
	 	 
	 	 
	City	Province
    or State
	 	 
	 	 
	Country	Postal
    Code
	 	 
	 
	Telephone	 
	 	 
	 
	Fax	 
	 	 
	 
	Email
    Address	 

 

THIS
OFFER IS ACCEPTED AND APPROVED BY:

 

APOLO
GOLD & ENERGY, INC.

 

__________________________________________

__________________
President, Director, Signing Authority

On
Behalf of the Board of Directors

 

    	Page 10 of 12

    	 

    

 

Schedule
A

 

Accredited
Investor Certification

 

The
undersigned hereby represents that he is an Accredited Investor as that term is defined in Rule 501 of Regulation D, promulgated
under the Securities Act of 1933, as amended, by placing his initials in front of the applicable description:

 

_________
(i) I am a natural person (or entity) whose individual net worth, or joint net worth with his or her spouse, at the time of purchase,
is in excess of $1,000,000. For purposes of this paragraph, “net worth” means the excess of total assets at fair market
value, including home and personal property, over total liabilities.

 

_________
(ii) A natural person who had an individual income in excess of $200,000 or with his or her spouse had joint income in excess
of $300,000 in each of the previous two years and who reasonably expects to have the same income level this year.

 

_________
(iii) A bank or savings and loan association acting in either its individual or a fiduciary capacity, any broker/dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as amended, an insurance company, an investment company registered
under the Investment Company Act of 1940 or a business development company as defined in that Act, a Small Business Investment
Partnership licensed by the U.S. Small Business Administration, an employee benefit plan within the meaning of the Employee Retirement
Income Security Act of 1974, so long as the decision to invest in the Partnership is being made by a fiduciary which is either
a bank, savings and loan association, insurance company or registered investment advisor, or if the employee benefit plan has
total assets in excess of $5,000,000 at the date hereof, or, of a self-directed plan, with investment decisions made solely by
persons that are accredited investors; or a private business development company as defined in Section 202(a)(22) of the Investment
Advisors Act of 1940; or a corporation, partnership or other entity in which all of the equity owners qualify as accredited investors
under any one or more of the previous categories.

 

_________
(iv) A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered,
whose purchase is directed by a sophisticated person (i.e., a person who has such knowledge and experience in financial and business
matters that he or she is capable of evaluating the merits and risks of the prospective investment).

 

__________
(v) An entity in which all of the equity owners are accredited investors. (If this alternative is checked, Subscriber must identify
each equity owner and provide statements signed by each demonstrating how each is qualified as an accredited investor.)

 

    	Page 11 of 12

    	 

    

 

Schedule
B

 

Company
Wire Transfer Information

 

Bank
Name: _______________________

Bank
Address: _____________________

Bank
Routing Number: _______________

Bank
Swift Code: ___________________

Bank
Tel No. ______________________

Bank
Fax No. ______________________

 

Beneficiary
Account Name: Apolo Gold & Energy, Inc.

Beneficiary
Account Number: __________________

 

    	Page 12 of 12EXHIBIT 4.01

 EXHIBIT 4.01
 

 SECURED PROMISSORY NOTE
 FOR VALUE RECEIVED, and subject to the terms and conditions set forth herein, upon receipt by Borrower (as hereinafter defined) of the full amount of the Loan (as hereinafter defined), TRANS-LUX CORPORATION (the "Borrower"), hereby unconditionally promises to pay to the order of CARLISLE INVESTMENTS INC. or its assigns (the "Noteholder", and together with the Borrower, the "Parties"), the principal amount of $1,000,000 (United States Dollars) (the "Loan"), together with all accrued interest thereon, as provided in this Secured Promissory Note (the "Note", as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms).
 
 1.
 Definitions. Capitalized terms used herein shall have the meanings set forth in this Section 1.
 "Business Day" means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close.
 "Default" means any of the events specified in Section 6 which constitutes an Event of Default or which, upon the giving of notice, the lapse of time, or both pursuant to Section 6 would, unless cured or waived, become an Event of Default.
 "Law" as to any Person, means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any governmental authority and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding on such Person or any of its properties or to which such Person or any of its properties is subject. 
 "Maturity Date" means the earlier of (a) June 1, 2014 and (b) the date on which all amounts under this Note shall become due and payable pursuant to Section 7.
 "Person" means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership, unincorporated organization, governmental authority or other entity.
 "Security Agreement" means the Security Agreement, dated as of the date hereof, by and between the Borrower and Noteholder, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms.
 
 2.
 Final Payment Date/Conversion; Optional Prepayments.
 
 2.1
 Final Payment Date/Conversion. The aggregate unpaid principal amount of the Loan, all accrued and unpaid interest and all other amounts payable under this Note shall be due and payable on the Maturity Date; provided, however, that the Parties may agree in writing to convert or exchange all or any part of this Note into a long term investment by Noteholder in Borrower, in each case in the form of and on terms acceptable by the Parties, which shall be set forth in separate documentation relating to such transaction (the "Conversion Transaction").  In the event of a Conversion Transaction, all amounts due 
 

 
 under this Note shall be payable (or not, as the case may be) in accordance with the terms of such related documentation.
 
 2.2
 Optional Prepayment/Conversion. The Borrower may prepay the Loan in whole or in part at any time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment. The Parties may engage in any Conversion Transaction at any time during the term of this Note.
 
 3.
 Security Agreement.
 
 3.1
 Security Agreement. The Borrower's performance of its obligations hereunder is secured by a security interest in the collateral specified in the Security Agreement.
 
 4.
 Interest.
 
 4.1
 Interest Rate. Except as otherwise provided herein, the outstanding principal amount of the Loan made hereunder shall bear interest at a rate equal to ten percent (10%) per annum from the date the Loan was made until the Loan is paid in full, whether at maturity, upon acceleration, by prepayment or otherwise.  Interest shall be payable on the Maturity Date or as per the terms of any Conversion Transaction, unless otherwise agreed to in writing by the Parties.
 
 4.2
 Default Interest. If any amount payable hereunder is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such overdue amount shall bear interest at a rate equal to twelve percent (12%) per annum from the date of such non-payment until such amount is paid in full; provided, however, that if the Parties have agreed to enter into a Conversion Transaction on or before the Maturity Date, then no Default Interest shall become payable, regardless of whether such Conversion Transaction shall have been consummated by the Maturity Date.
 
 4.3
 Computation of Interest/Interest Rate Limitation. All computations of interest shall be made on the basis of a year of 365/366 days, as the case may be, and the actual number of days elapsed. Interest shall accrue on the Loan on the day on which such Loan is made, and shall not accrue on the Loan on the day on which it is paid.  If at any time and for any reason whatsoever, the interest rate payable on the Loan shall exceed the maximum rate of interest permitted to be charged by the Noteholder to the Borrower under applicable Law, such interest rate shall be reduced automatically to the maximum rate of interest permitted to be charged under applicable Law.
 
 5.
 Payment Mechanics.
 
 5.1
 Manner and Application of Payment. All payments of interest and principal shall be made in lawful money of the United States of America no later than 12:00 PM on the date on which such payment is due by cashier's check, certified check or by wire transfer of immediately available funds to the Noteholder's account at a bank specified by the Noteholder in writing to the Borrower from time to time, unless the terms of a Conversion Transaction shall dictate otherwise.  All such payments made hereunder in the absence of a Conversion Transaction shall be applied first, to the payment of any fees or charges 
  
 2
 

 
 outstanding hereunder, second, to accrued interest and third, to the payment of the principal amount outstanding under the Note.
 
 5.2
 Business Day Convention. Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension will be taken into account in calculating the amount of interest payable under this Note.
 
 6.
 Events of Default. The occurrence of any of the following shall constitute an Event of Default hereunder:
 
 6.1
 Failure to Pay. The Borrower fails to pay (a) any principal amount of the Loan when due; or (b) interest or any other amount when due and such failure continues for 5 Business Days after written notice to the Borrower, except, in each case, where the Parties have agreed to enter into a Conversion Transaction.
 
 6.2
 Bankruptcy.  
 
 (a)
 the Borrower commences any case, proceeding or other action (i) under any existing or future law relating to bankruptcy, insolvency, reorganization, or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (ii) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or the Borrower makes a general assignment for the benefit of its creditors;
 
 (b)
 there is commenced against the Borrower any case, proceeding or other action of a nature referred to in clause (a) above which (i) results in the entry of an order for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged or unbonded for a period of sixty (60) days;
 
 (c)
 there is commenced against the Borrower any case, proceeding or other action seeking issuance of a warrant of attachment, execution or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which has not been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof;
 
 (d)
 the Borrower takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (a), (b) or (c) above; or
 
 (e)
 the Borrower is generally not, or is unable to, or admits in writing its inability to, pay its debts as they become due.
 
 7.
 Remedies. Upon the occurrence of an Event of Default and at any time thereafter during the continuance of such Event of Default, the Noteholder may at its option, by written notice to the Borrower (a) declare the entire principal amount of this Note, together with all accrued interest thereon and all other amounts payable hereunder, immediately due and payable and/or (b) exercise any or all of its rights, powers or remedies under the Security Agreement or applicable law; provided, however that, if an Event 
 

 3
 

 
 of Default described in Section 6.2 shall occur, the principal of and accrued interest on the Loan shall become immediately due and payable without any notice, declaration or other act on the part of the Noteholder. 
 
 8.
 Miscellaneous.
 
 8.1
 Notices.  
 
 (a)
 All notices, requests or other communications required or permitted to be delivered hereunder shall be delivered in writingto such address as a Party may from time to time specify in writing. 
 
 (b)
 Notices if (i) mailed by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been given when received, (ii) sent by facsimile during the recipient's normal business hours shall be deemed to have been given when sent (and if sent after normal business hours shall be deemed to have been given at the opening of the recipient's business on the next business day) and (iii) sent by e-mail shall be deemed received upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment).
 
 8.2
 Governing Law. This Note, the Security Agreement and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Note and the Security Agreement and the transactions contemplated hereby and thereby shall be governed by the laws of the State of New York, with no regard to its conflicts of law provisions.
 
 8.3
 Submission to Jurisdiction.  The Parties hereby irrevocably and unconditionally (i) agree that any legal action, suit or proceeding arising out of or relating to this Note may be brought in the courts of the State of New York or of the United States of America for the Southern District of New York and (ii) submit to the exclusive jurisdiction of any such court in any such action, suit or proceeding. 
 
 8.4
 Venue. The Parties irrevocably and unconditionally waive, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Note in any court referred to in Section 8.3 and the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
 
 8.5
 Waiver of Jury Trial. THE PARTIES HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE, THE SECURITY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY. 
 
 8.6
 Counterparts; Integration; Effectiveness. This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute a single contract. This Note and the Security Agreement constitute the entire contract between the Parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. Delivery of an executed counterpart 
  
 4
 

 
 of a signature page to this Note by facsimile or in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Note.
 
 8.7
 Successors and Assigns. This Note may be assigned or transferred by the Noteholder to any Person upon written notice to the Borrower. The Borrower may not assign or transfer this Note or any of its rights hereunder without the prior written consent of the Noteholder. This Note shall inure to the benefit of and be binding upon the parties hereto and their permitted assigns.
 
 8.8
 Waiver of Notice. The Borrower hereby waives presentment, demand for payment, protest, notice of dishonor, notice of protest or nonpayment, notice of acceleration of maturity and diligence in connection with the enforcement of this Note or the taking of any action to collect sums owing hereunder.
 
 8.9
 Amendments and Waivers. No term of this Note may be waived, modified or amended except by an instrument in writing signed by both of the parties hereto. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given. 
 
 8.10
 Headings. The headings of the various Sections and subsections herein are for reference only and shall not define, modify, expand or limit any of the terms or provisions hereof.
 
 8.11
 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising on the part of the Noteholder, of any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.
 
 8.12
 Severability. If any term or provision of this Note or the Security Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Note or the Security Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. 
 

 IN WITNESS WHEREOF, the Borrower has executed this Note as of December 2, 2013.
 

 	 	
	  
	 TRANS-LUX CORPORATION

	  
	 By__/s/ J.M. Allain____________
 

 Name:  J.M. Allain
 Title:  President and CEO

 

 

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