Document:

Prepared by R.R. Donnelley Financial -- EX-10.12a

 Exhibit 10.12a 
 EXECUTION VERSION 
 CONFIDENTIAL TREATMENT REQUESTED 

Certain portions of this document have been omitted pursuant to a request for Confidential Treatment and, where applicable, have been marked with
“[***]” to indicate where omissions have been made. The confidential material has been filed separately with the Securities and Exchange Commission. 
 AMENDMENT NO. 1 TO LOAN AGREEMENT 
 THIS AMENDMENT NO. 1 TO LOAN
AGREEMENT (this “Amendment”), dated as of December 6, 2013 (the “Amendment Effective Date”), is by and among AU SOLAR 1, LLC, a Delaware limited liability company (the
“Borrower”), the Lenders party hereto, CREDIT SUISSE SECURITIES (USA) LLC, ING CAPITAL LLC and RABOBANK N.A., as joint lead arrangers (the “Joint Lead Arrangers”), CREDIT SUISSE AG, CAYMAN
ISLANDS BRANCH, as administrative agent (in such capacity, the “Administrative Agent”) and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as the collateral agent for the Secured Parties (the “Collateral Agent”
and together with the Borrower, the Joint Lead Arrangers and the Administrative Agent, the “Parties”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Loan Agreement.

 W I T N E S S E T H 
 WHEREAS, the Borrower, certain banks and financial institutions from time to time party thereto as lenders (the “Lenders”), the Administrative Agent, the Collateral Agent and the
Joint Lead Arrangers, are parties to that certain Loan Agreement dated as of June 7, 2013 (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Loan Agreement”) pursuant to which Lenders
make loans to Borrower to monetize the future Periodic Rent, certain Customer Payments and certain other payments to be received by Borrower under the Master Lease and Customer Agreements, respectively, with respect to certain Projects, on the
terms, and subject to the condition set forth in the Loan Agreement; 
 WHEREAS, Borrower have requested that the
Majority Lenders and each Joint Lead Arranger that is also a Lender, as applicable, amend the Loan Agreement to, among other things, (i) extend the Availability Period to parallel the extension of the date Projects must be Placed-In-Service
under the Master Lease, (ii) to increase the Incremental Loan Commitment, (iii) make certain modifications related to the Amendment No. 2 of the Master Lease, dated as of [***], and (iv) make modifications to allow the
distribution of Excess Cash Flow on a Scheduled Payment Date, subject to certain conditions; and 
 WHEREAS, the Majority
Lenders and each Joint Lead Arranger that is also a Lender, as applicable, are willing to make such amendments to the Loan Agreement, in accordance with and subject to the terms and conditions set forth herein. 

  

 [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted
portion has been omitted and filed separately with the Securities and Exchange Commission. 

 NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I. 
 AMENDMENTS TO LOAN AGREEMENT 

Section 1.01 Amendment to Section 1.1. Section 1.1 of the Loan Agreement is hereby amended as follows: 

 

	 	(a)	The definition of “Availability Period” is hereby amended and restated in its entirety to read as follows: 

“‘Availability Period’ means a period commencing on the Closing Date and ending on the
earlier of (A) the date when the Commitments have been utilized for Borrowings and (B) August 31, 2014.” 
  

	 	(b)	The definition of “Investment Grade Host Customer” is hereby added to Section 1.1 in its respective alphabetical order: 

“‘Investment Grade Host Customer’ has the meaning given to such term in the Master Lease.”

  

	 	(c)	The definition of “Master Lease” is hereby amended and restated in its entirety to read as follows: 

“‘Master Lease’ means the Master Lease Agreement, dated as of [***], by and between the Borrower and
the Lessee, [***], Amendment No. 2 to the Master Lease Agreement, dated as of [***], and as may be further amended from time to time.” 
  

	 	(d)	The definition of “Upsize Project” is hereby amended and restated in its entirety to read as follows: 

“‘Upsize Project’ means a Project that is subject to the Master Lease and that is not a Funded Project as of
September 1, 2014.” 
 Section 1.02 Amendment to Section 2.10(a). Section 2.10(a) of the Loan
Agreement is hereby amended by replacing the reference to “$50,000,000” with “$58,000,000”. 
 Section 1.03
Amendment to Section 3.2(g). Section 3.2(g) of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 
 “(g) Each Current Project shall be a Project subject to the Master Lease, and if any Current Project is a Commercial Project, then the commercial Host Customer met the Minimum Commercial Credit
Standard as of the closing date of the applicable Lease Tranche under the Master Lease for such Current Project; provided, it shall not be a condition to a Borrowing that the commercial Host Customer meet the Minimum Commercial Credit
Standard with respect to the Host Customer site being owner-occupied and not leased, so long as (i) such Host Customer is an Investment Grade Host Customer and (ii) the term of the lease entered into by such Host Customer with respect to
such site is the same or longer than such Host Customer’s Customer Agreement.” 

  

 [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted
portion has been omitted and filed separately with the Securities and Exchange Commission. 

 Section 1.04 Amendment to Section 3.2(k). Section 3.2(k) of the Loan Agreement
is hereby amended and restated in its entirety to read as follows: 
 “(k) (i)
No more than $[***] of Borrowings have been made with respect to Residential Projects with Host Customers with a
FICO® score of [***] and (ii) to the extent the Master Lease is amended, or waived to permit, [***] terms
as described in clause (D) of the first proviso in Section 6.11(a), no Current Project for a Residential Project has a Customer Agreement with [***] terms.” 
 Section 1.05 Amendment to Section 4.1(z). Section 4.1(z) of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 

“(z) Project Credit Criteria. As of the closing date of the applicable Lease Tranche under the Master Lease
for a Current Project, (a) if such Project is a Residential Project, the applicable Host Customer met the Minimum Residential Credit Standard and (b) if such Project is a Commercial Project, and unless the Lenders waived the condition
precedent in Section 3.2(g) with respect to such Current Project, the applicable commercial Host Customer met the Minimum Commercial Credit Standard (not including, for purposes of this representation, the requirement that the Host
Customer site is owner-occupied and not leased if (i) such Host Customer is an Investment Grade Host Customer and (ii) the term of the lease entered into by such Host Customer with respect to such site is the same or longer than such Host
Customer’s Customer Agreement).” 
 Section 1.06 Amendment to Section 6.7(d). Section 6.7(d) of the Loan
Agreement is hereby amended and restated in its entirety to read as follows: 
 “(d) so long as no
Default or Event of Default has occurred and is continuing or would be caused thereby, to Member from Upsize Rents or any amounts distributable pursuant to Section 5.1(b)(vi) of the Depositary Agreement on any Scheduled Payment Date; and”.

 ARTICLE II. 
 MISCELLANEOUS 
 Section 2.01 Amended Terms. On and after
the Amendment Effective Date, all references to the Loan Agreement in each of the Financing Documents shall hereafter mean the Loan Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, all the terms and
conditions of the Financing Documents are unaffected and shall continue to be in full force and effect according to their respective terms. The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of,
or operate as a waiver of any right, power or remedy of the Lenders, the Joint Lead Arrangers or the Agents under the Loan Agreement or any other Financing Document. 
 Section 2.02 Reaffirmation of Obligations. Borrower hereby ratifies the Loan Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Loan Agreement
applicable to it and (b) that it is responsible for the observance and full performance of its Obligations. 

  

 [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted
portion has been omitted and filed separately with the Securities and Exchange Commission. 

 Section 2.03 Financing Document. This Amendment shall constitute a
Financing Document under the terms of the Loan Agreement. 
 Section 2.04 Expenses. The Borrower agrees to
reimburse the Agents for the Agents’ costs and out-of-pocket expenses incurred in connection with this Amendment, including the reasonable fees, out-of-pocket expenses and disbursements of Chadbourne & Parke LLP or any other counsel
for the Agents, subject to the provisions of Section 10.4 of the Loan Agreement. 
 Section 2.05 Further
Assurances. Borrower agrees to promptly take such action, upon the request of the Administrative Agent, as is necessary to carry out the intent of this Amendment. 
 Section 2.06 Entirety. This Amendment and the other Financing Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral
or written, if any, relating to the subject matter hereof, including, for avoidance of doubt, the proviso contain in paragraph H of that certain Consent and Waiver, dated as of [***], among the Borrower, the Lenders, Joint Lead Arranger, the
Administrative Agent and the Collateral Agent. 
 Section 2.07 Counterparts. This Amendment may be executed
in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment or any other
document required to be delivered hereunder, by fax transmission or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement. Without limiting the foregoing,
upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart. 
 Section 2.08 GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (NOT INCLUDING SUCH STATE’S CONFLIT OF LAWS
PROVISIONS OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
 Section 2.09
Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 Section 2.10 Waiver of Jury Trial; Consent to Jurisdiction; Service of Process;. The waiver of jury trial, jurisdiction, and service of process provisions set forth in Sections 10.14
and 10.15 of the Loan Agreement are hereby incorporated by reference, mutatis mutandis. 
 Section 2.11
Instruction to Agents. By their execution and delivery of this Amendment, the Lenders consent to the amendments in Article I and hereby instruct the Administrative Agent and the Collateral Agent to execute this Amendment.

  

 [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted
portion has been omitted and filed separately with the Securities and Exchange Commission. 

 IN WITNESS WHEREOF the parties hereto have caused this Amendment No. 1 to Loan
Agreement to be duly executed on the date first above written. 
  

			
	AU SOLAR 1, LLC,
	as Borrower
		
	By:	 	 /s/ Robert Kelly

	Name:	 	Robert Kelly
	Title:	 	Chief Financial Officer

  
 AMENDMENT NO.
1 TO LOAN AGREEMENT 
  

 [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted
portion has been omitted and filed separately with the Securities and Exchange Commission. 

 
			
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
	as Administrative Agent, Collateral Agent and as a Lender
		
	By:	 	 /s/ Mikhail Faybusovich

	Name:	 	Mikhail Faybusovich
	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Tyler R. Smith

	Name:	 	Tyler R. Smith
	Title:	 	Authorized Signatory

  
 AMENDMENT NO.
1 TO LOAN AGREEMENT 
  

 [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted
portion has been omitted and filed separately with the Securities and Exchange Commission. 

 
			
	ING CAPITAL LLC,
	as a Lender and Joint Lead Arranger
		
	By:	 	 /s/ Erwin Thomet

	Name:	 	Erwin Thomet
	Title:	 	Managing Director
		
	By:	 	 /s/ Thomas Cantello

	Name:	 	Thomas Cantello
	Title:	 	Director
	
	 RABOBANK, N.A,
 as a Lender and Joint Lead Arranger

		
	By:	 	 /s/ Gianluca Signorelli

	Name:	 	Gianluca Signorelli
	Title:	 	SVP, Renewable Energy Finance
		
	By:	 	 /s/ Nina Davies

	Name:	 	Nina Davies
	Title:	 	VP, Renewable Energy Finance

  
 AMENDMENT NO.
1 TO LOAN AGREEMENT 
  

 [***] Confidential treatment has been requested for the bracketed portions. The confidential redacted
portion has been omitted and filed separately with the Securities and Exchange Commission.UNIT SUBSCRIPTION AGREEMENT

SUBSCRIPTION AGREEMENT

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS SUBSCRIPTION AGREEMENT OR THE INFORMATION CONTAINED HEREIN.  ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

IN MAKING AN INVESTMENT DECISION, SUBSCRIBERS MUST RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED.  SUBSCRIBERS SHOULD MAKE AN INDEPENDENT DECISION WHETHER THE OFFERING MEETS THEIR RISK TOLERANCE. NO FEDERAL OR STATE SECURITIES COMMISSION HAS APPROVED, ENDORSED, OR RECOMMENDED THIS OFFERING.  NO INDEPENDENT PERSON HAS CONFIRMED THE ACCURACY OR TRUTHFULNESS OF THE DISCLOSURE CONTAINED HEREIN, NOR WHETHER IT IS COMPLETE.  THE SECURITIES OFFERED HEREBY HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

This Subscription Agreement (this “Subscription Agreement”) is made as of the ______ day of __________, 2014, between Arazu, Inc., (“us”, “we” or “our”), a Florida Corporation and  ____________________, the Subscriber (“Subscriber”). 

RECITALS

Subject to the terms and conditions of this Subscription Agreement, the Subscriber hereby irrevocably offers, subscribes for and agrees to purchase ________________ shares of our common stock (the “Common Shares”) and, as full payment therefore, agrees to pay us, concurrently with the Subscriber’s execution and delivery of this Subscription Agreement, the sum of ________________ cents ($____) for each one (1) Common Share purchased.

The Offering is being made by our officers and directors on a best efforts basis without the services of underwriters, brokers or dealers.

We may utilize the proceeds of the Offering upon receipt.  There is no minimum amount we must receive from the Offering prior to utilizing the Offering Proceeds.

We have agreed to accept the Subscriber’s offer to purchase the Securities based solely upon the representations made by the Subscriber set forth herein. We are executing and delivering this Subscription Agreement in reliance upon the exemptions from securities registration under the Securities Act of 1933, as amended (the “Securities Act”), and state securities laws. The Subscriber understands and acknowledges that we are relying upon the representations and warranties of the Subscriber set forth in this Subscription Agreement without limitation. 

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Subscriber - Signature

The Subscriber undersigned acknowledges that he understands the meaning and legal consequences of the representations and warranties contained herein, and he hereby agrees to indemnify and hold harmless the Corporation, the Corporation, their partners and employees, and any of their affiliates and their officers, directors, shareholders and employees, or any professional advisor or entity thereto, from and against any and all loss, damage, liability or expense, including costs and reasonable attorney's fees, to which said entities and persons may be put or which they may incur by reason of, or in connection with, any misrepresentation made by the Investor, any breach of any of his warranties, or his failure to fulfil any of his covenants or agreements under this Agreement.

NOW, THEREFORE, the Parties hereby agree as follows:

1 Recitals.

The above recitals are true and correct and also constitute the terms of this Subscription Agreement. 

2. Representations and Warranties.

The Subscriber undersigned acknowledges that he understands the meaning and legal consequences of the representations and warranties contained herein, and he hereby agrees to indemnify and hold harmless the Corporation, the Corporation, their partners and employees, and any of their affiliates and their officers, directors, shareholders and employees, or any professional advisor or entity thereto, from and against any and all loss, damage, liability or expense, including costs and reasonable attorney's fees, to which said entities and persons may be put or which they may incur by reason of, or in connection with, any misrepresentation made by the Investor, any breach of any of his warranties, or his failure to fulfil any of his covenants or agreements under this Agreement.

As a material inducement for us to enter into this Subscription Agreement, Subscriber acknowledges that we have relied upon the following representations and warranties of the Subscriber:

2.1 Purchase for Subscriber’s Own Account.

The Subscriber is purchasing the Common Shares for the Subscriber's own account and for Subscriber’s investment purposes and not with a view towards the public sale or distribution thereof, except pursuant to sales that are exempt from the registration requirements of the Securities Act and/or sales registered under the Securities Act.  The Subscriber understands that Subscriber must bear the economic risk of this investment indefinitely, unless the Securities are registered pursuant to the Securities Act and any applicable state securities or Blue Sky Laws or an exemption from such registration is available.

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Subscriber - Signature

2.2  Accredited Investor Status and Suitability.

The Subscriber has read and understands Rule 501(a) of Regulation D of the Securities Act and represents that it is an “Accredited Investor” as that term is defined by Rule 501(a). Subscriber further represents that the Subscriber is knowledgeable, sophisticated and experienced in making and is qualified to make decisions with respect to a variety of sophisticated and complex investments that present investment decisions like those involved in the purchase of the Common Shares. The Subscriber, in reaching a decision to subscribe, has such knowledge and experience in financial and business matters that the Subscriber is capable of reading, interpreting and understanding financial statements and evaluating the merits and risks of an investment in the Common Shares and has the net worth to undertake such risks. Subscriber has invested in the common stock or other securities of companies comparable to us that involve non-trading, and/or thinly traded securities and penny stocks, unregistered securities, restricted securities and high-risk investments. The Subscriber represents that in addition to Subscriber’s  own ability to evaluate an investment in the Common Shares, the Subscriber has employed the services of an investment advisor, attorney or accountant or other advisor to read all of the documents furnished or made available by us to the Subscriber, to evaluate the merits and risks of such an investment on its behalf, and that the Subscriber recognizes the highly speculative nature of an investment in the Common Shares, and the Subscriber represents that he or she is familiar with our business operations and financial affairs and has been provided with all information pertaining to us it has requested.

The Subscriber understands that he or she or it may be unable to liquidate the Securities and that is ability to transfer the Securities is limited. The Subscriber’s overall commitment to investments, which are not readily marketable, is not disproportionate to Subscriber’s net worth, and the investment in the Securities will not cause the Subscriber’s overall investment in illiquid high-risk investments to become excessive in proportion to Subscriber’s assets, liabilities and living standards. The Subscriber can bear the economic risk of an investment in the Common Shares for an indefinite period of time and can bear a loss of the entire investment in the Common Shares without financial hardship or a change in its living conditions.

2.3 Representations and Information Provided

The Subscriber is not investing in the Common Shares based upon any representation, oral or written, by any person with respect to the future value of, if any, or the income from, if any, the Securities. Neither us nor any of our officers, directors, shareholders, partners, employees or agents, or any other persons have represented, guaranteed or warranted, whether expressly or by implication, that: (i) the Subscriber will realize any given percentage of profits and/or amount or type of consideration, profit or loss as a result of our activities or the Subscriber’s investment in the Common Shares; or (ii) our past performance or experience of our management, or of any other person, will in any way indicate predictable results regarding the ownership of our Securities, the future value of the Securities, or of our activities.

No oral or written representations have been made other than as stated in this Subscription Agreement and the Memorandum, and no oral or written information furnished to the Subscriber or the Subscriber’s advisor(s) in connection with the Offering is in any way inconsistent with the information stated in this Subscription Agreement or the Memorandum.

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Subscriber - Signature

2.5 Use of Proceeds.

The Subscriber understands and acknowledges that our management will have complete discretion over the use of the proceeds from the Offering. The Subscriber acknowledges that our management has this sole discretion over the use of proceeds and there are no assurances that they will use the proceeds as they currently intend or that any one or a combination of the various uses of the proceeds will result in any aspect of our operations being successful. As a result, our management may spend the proceeds on a broad variety of items that are not associated with the above-described uses of proceeds. Subscriber acknowledges that it will have no control or ability to influence or participate in the determination of how the proceeds from this Offering will be utilized and the use of the proceeds by management cannot currently be predicted with any accuracy.

3. Investment Intention of Subscriber.

The Subscriber understands that the Securities have not been registered under the Securities Act and we are relying upon an exemption from registration under the provisions of the Securities Act that depends, in part, upon the Subscriber’s investment intention.  In connection with this, the Subscriber understands that it is the position of the Securities and Exchange Commission (“SEC”) that the statutory basis for such exemption would not be present if the Subscriber’s representation merely meant that its present intention was to hold the Securities for a short period, such as the capital gains period of tax statutes, for a deferred sale, for a market rise, assuming that a market develops, or for any other fixed period.  The Subscriber realizes that, in the view of the SEC, an investor who purchases the Securities with a present intent to resell the interest would not be purchasing for investment as required by SEC rules. 

4.  Miscellaneous 

4.1 Lack of Public Market.

The Subscriber understands and acknowledges that the Common Shares are being offered and sold in reliance upon specific exemptions from the registration requirements of the United States and state securities laws and that we are relying upon the truth and accuracy of, and the Subscriber's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Subscriber set forth herein without limitation in order to determine the availability of such exemptions and the eligibility of the Subscriber to acquire the Common Shares.

The Subscriber acknowledges that no public market presently exists for the Securities and that the Subscriber may find it impossible to liquidate the investment at a time when it may be desirable to do so, or at any other time.

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Subscriber - Signature

The Subscriber understands that the offer and sale of the Securities has not been and is not being registered under the Securities Act or any state securities laws, and the Securities may not be transferred unless: (a) the transfer is made pursuant to and as set forth in an effective registration statement under the Securities Act covering the Securities or (b) the Subscriber shall have delivered to us at the Subscriber’s expense an opinion of counsel (which opinion shall be in form, substance, scope and law firm acceptable to us) to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; or (c) sold under and in compliance with Rule 144 promulgated under the Securities Act (or a successor rule) (“Rule 144”); or (d) sold or transferred in accordance with applicable securities laws to an affiliate of the Subscriber who agrees to sell or otherwise transfer the Securities only in accordance with the provisions of this Section; and we are not under any obligation to register the Securities under the Securities Act or any state securities laws. Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may not be pledged as collateral in connection with a bona fide margin account or other lending arrangement, unless such pledge is consistent with applicable laws, rules and regulations and at our option, the pledgor provides us with a legal opinion (which opinion shall be in form, substance, scope and law firm acceptable to us) that the pledge or other lending agreement is in compliance with applicable state and federal securities laws.

The Subscriber understands that we do not make any representation or warranty regarding our fulfillment in the future of any reporting requirements under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or our dissemination to the public of any current financial or other information concerning us, as is required by Rule 144 as one of the conditions of its availability. The Subscriber is aware that the safe harbor provided by Rule 144 of the Securities Act is not now available for Subscriber’s resale of the Securities and may never become available for Subscriber’s resale of the Securities or any portion thereof.

The Subscriber understands that the certificate or other document representing the Securities shall bear a restrictive legend, until such time as the securities are subject to an effective registration statement or otherwise may be sold by the Subscriber pursuant to an exemption from registration, in substantially the following form:

“The Securities represented by this certificate have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state of the United States or in any other jurisdiction. The Securities represented hereby may not be offered, sold or transferred in the absence of an effective registration statement for the Securities under applicable securities laws unless offered, sold or transferred pursuant to an available exemption from the registration requirements of those laws.”

4.2 Authorization; Enforcement. 

This Subscription Agreement has been duly and validly authorized, executed and delivered on behalf of the Subscriber and is a valid and binding agreement of such Subscriber enforceable against the Subscriber in accordance with its terms.  If the Subscriber is a corporation, the corporation is duly incorporated or organized and validly existing in the jurisdiction of its incorporation or organization and has all requisite authority to purchase and hold the Securities.

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Subscriber - Signature

4.3 Survival of Representations.

The Subscriber acknowledges that the representations, warranties and agreements made by the Subscriber herein shall survive the execution and delivery of this Subscription Agreement and purchase of the Securities.

4.4 Acceptance.

The Subscriber understands that we reserve the unrestricted right to reject or limit any subscription at our sole discretion.

4.5  Address 

The Subscriber hereby represents that the address of Subscriber furnished by it at the end of this Subscription Agreement is the Subscriber’s principal residence if it is an individual or its principal business address if it is a corporation or other entity and that we are relying upon this information to ensure compliance with applicable federal securities and state Blue Sky laws.

4.6 No General Solicitation or Advertisement. 

The Subscriber is not purchasing the Securities as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, posted on the Internet, or presented at any seminar or meeting, or any solicitation of a subscription by a person other than one of our officers or directors with which the subscriber had a pre-existing relationship.

4.5 Lack of Escrow and Non-Refundable Subscription.

Subscriber acknowledges that all subscriptions for the Securities are non-refundable except where prohibited by law. There is no minimum amount that we must receive from the sale of the Securities prior to utilizing Offering proceeds and no Offering funds will be held in escrow.  As a result, all proceeds of the Offering will be deposited into our operating account and become immediately available for use by us at our discretion.

5. Miscellaneous

5.1 Nominees.

No one other than Subscriber has any interest in or any right to acquire the Securities subscribed for by Subscriber. Subscriber understands and acknowledges that we will have no obligation to recognize the ownership, beneficial or otherwise, of such Securities by anyone other than Subscriber. Subscriber is purchasing the Securities from funds lawfully obtained and belonging to Subscriber and has not borrowed or otherwise received the funds used to purchase the Securities, or any portion thereof from any third party.

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Subscriber - Signature

5.2 Counterparts. 

This Subscription Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.  This Subscription Agreement, once executed by a party, may be delivered to the other parties hereto by facsimile transmission of a copy of this Subscription Agreement bearing the signature of the party so delivering this Subscription Agreement.  In the event any signature is delivered by facsimile transmission, the party using such means of delivery shall cause the manually executed Execution Page(s) hereof to be physically delivered to the other party within five (5) days of the execution hereof, provided that the failure to so deliver any manually executed Execution Page shall not affect the validity or enforceability of this Subscription Agreement.

5.3 Headings.

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

5.4 Severability.

If any provision of this Subscription Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Subscription Agreement or the validity or enforceability of this Subscription Agreement in any other jurisdiction.

5.5 Entire Agreement; Amendments.

This Subscription Agreement and the instruments referenced herein contain the entire understanding of Subscriber and us and any affiliates and/or persons acting on their behalf with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither we nor Subscriber makes any representation, warranty, covenant or undertaking with respect to such matters. 

5.6 Successors and Assigns.

This Subscription Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 

Subscriber may not assign this Subscription Agreement or any rights 

Or obligations hereunder.

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Subscriber - Signature

5.7 Further Assurances. 

The Subscriber shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other Subscription Agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Subscription Agreement and the consummation of the transactions contemplated hereby.

5.8 Law and Arbitration.

This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of Florida applicable to contracts executed and performed in such State, without giving effect to conflict of law principles. 

5.9 Presumption against Scrivener.

Each party waives the presumption that this Subscription Agreement is presumed to be in favor of the party which did not prepare it, in case of a dispute as to interpretation.

NOTICES

WE SHALL HAVE THE FOLLOWING AVAILABLE FOR REVIEW FOR EACH INVESTOR OR HIS AGENT, DURING THIS PRIVATE PLACEMENT AND PRIOR TO THE SALE OF SHARES UPON REQUEST:  (1) ACCESS TO ALL BOOKS AND RECORDS OF THE CORPORATION; (2) ACCESS TO ALL MATERIAL CONTRACTS AND DOCUMENTS RELATING TO THE TRANSACTIONS DESCRIBED HEREIN AND THE CORPORATION'S OPERATIONS; AND (3) THE OPPORTUNITY TO ASK QUESTIONS OF, AND RECEIVE ANSWERS FROM, ANY PERSON AUTHORIZED TO ACT ON BEHALF OF THE CORPORATION CONCERNING ANY ASPECT OF THE INVESTMENT, AND TO OBTAIN ANY ADDITIONAL INFORMATION, TO THE EXTENT THE CORPORATION POSSESSES SUCH INFORMATION OR CAN DEVELOP IT WITHOUT UNREASONABLE EFFORT OR EXPENSE, NECESSARY TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS AGREEMENT. 

FLORIDA RESIDENTS ONLY

ANY SALE IN FLORIDA IS VOIDABLE BY THE PURCHASER IN SUCH SALE EITHER WITHIN 3 DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO THE ISSUER, AN AGENT OF THE ISSUER, OR AN ESCROW AGENT OR WITHIN 3 DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER.

8

_________________________________

Subscriber - Signature

IN WITNESS WHEREOF, the Parties have caused this Subscription Agreement to be duly executed as of the date first above written.

Subscription Amount:

Total Number of Common Shares purchased:  _____________________

Aggregate Purchase Price  _____________( $_.05_ ) for each one (1) Common Share

Method of Payment _______________________________

Subscriber:

By: 

_____________________________ (signature)

Name: _____________________________ (print name)

Title: 

_____________________________

Address:

___________________________________

___________________________________

 

___________________________________

___________________________________

Arazu, Inc.:

By: 

__________________________ (signature)

Name:  Paul Clewlow

Title: 

President

9

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Subscriber - Signature

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