股票认购协议

1SMARTHEATINCSUBSCRIPTIONAGREEMENTSMARTHEATINC公司股票认购协议THISSUBSCRIPTIONAGREEMENTPERTAINSTOTHEOFFERINGBYSMARTHEATINCTHE“COMPANY”OFUPTOTWOMILLIONTWOHUNDREDEIGHTYFIVETHOUSANDSEVENHUNDREDFOURTEEN2,285,714UNITSTHE“UNITS”,WITHEACHUNITCONSISTINGOFONE1SHAREOFTHECOMPANYSCOMMONSTOCKTHE“SHARES”ANDWARRANTSTOPURCHASEFIFTEENPERCENT15OFONE1SHAREOFTHECOMPANYSCOMMONSTOCKATANEXERCISEPRICEOFSIXDOLLARS600PERSHARETHE“WARRANTS”,ATAPURCHASEPRICEOFTHREEDOLLARSFIFTYCENTS350PERUNITFORANAGGREGATEOFFERINGOFAMINIMUMOFFIVEMILLIONDOLLARS5,000,000ANDUPTOAMAXIMUMOFEIGHTMILLIONDOLLARS8,000,000THE“OFFERING”DESCRIBEDINTHEPRIVATEPLACEMENTOFFERINGMEMORANDUMFORTHEUNITSDATEDMAY23,2008,ASTHESAMEHERETOMAYBEAMENDEDTHE“OFFERINGMEMORANDUM“THEMINIMUMSUBSCRIPTIONTHATTHECOMPANYWILLACCEPTFROMANYINVESTORISTENTHOUSAND10,000UNITSFORAPURCHASEPRICEOFTHIRTYFIVETHOUSANDDOLLARS35,000THECOMPANYISMAKINGTHISOFFERINGSOLELYTOACCREDITEDINVESTORSASDEFINEDUNDERRULE501AOFREGULATIONDPROMULGATEDUNDERTHESECURITIESACTOF1933,ASAMENDEDTHE“SECURITIESACT”本协议旨在对SMARTHEATINC公司（以下简称“公司”）发行共计2,285,714单位有价证券（以下简称“发行单位”）的相关事宜进行约定。按照约定，每一发行单位包括一股公司普通股股票（以下简称“发行股票”）及一份权证（该权证的持有人所持有的每一份权证可以6美元的行权价格购买公司15股的公司普通股股票，以下简称“发行权证”）；此次发行总的融资金额将按照2008年5月23日所签订的私募发行协议及其修订协议（以下简称“发行协议”）确定，为500万美元至800万美元之间；此次发行每一投资人应至少认购10000发行单位，相应的最低投资金额为35000美元。THEUNDERSIGNED,INTENDINGTOBELEGALLYBOUND,HEREBYOFFERSTOPURCHASEFROMTHECOMPANYTHENUMBEROFUNITSFORTHEAGGREGATEPURCHASEPRICESETFORTHONTHESIGNATUREPAGEHERETOTHECOMPANYWILLBEDEEMEDTOHAVEACCEPTEDTHISOFFERUPONEXECUTIONBYITOFTHERECEIPTANDACCEPTANCEATTACHEDTOTHISSUBSCRIPTIONAGREEMENTTHISSUBSCRIPTIONISSUBMITTEDTOTHECOMPANYSUBJECTTOITSACCEPTANCEANDINACCORDANCEWITH,ANDSUBJECTTO,THETERMSANDCONDITIONSDESCRIBEDIN,THISSUBSCRIPTIONAGREEMENT21DEFINITIONSINADDITIONTOTHETERMSDEFINEDELSEWHEREINTHISSUBSCRIPTIONAGREEMENT,FORALLPURPOSESOFTHISSUBSCRIPTIONAGREEMENT,THEFOLLOWINGTERMSSHALLHAVETHEMEANINGSINDICATEDINTHISSECTION1一、定义“AFFILIATE”MEANSANYPERSONTHAT,DIRECTLYORINDIRECTLYTHROUGHONEORMOREINTERMEDIARIES,CONTROLSORISCONTROLLEDBYORISUNDERCOMMONCONTROLWITHAPERSON,ASSUCHTERMSAREUSEDINANDCONSTRUEDUNDERRULE144“COMMISSION”MEANSTHESECURITIESANDEXCHANGECOMMISSION“EXCHANGEACT”MEANSTHESECURITIESEXCHANGEACTOF1934,ASAMENDED“GAAP”MEANSUSGENERALLYACCEPTEDACCOUNTINGPRINCIPLES“PERSON”MEANSANINDIVIDUALORCORPORATION,PARTNERSHIP,TRUST,INCORPORATEDORUNINCORPORATEDASSOCIATION,JOINTVENTURE,LIMITEDLIABILITYCOMPANY,JOINTSTOCKCOMPANY,GOVERNMENTORANAGENCYORSUBDIVISIONTHEREOFOROTHERENTITYOFANYKIND“SECURITIESACT”MEANSTHESECURITIESACTOF1933,ASAMENDED“TRANSACTIONDOCUMENTS”MEANSTHISSUBSCRIPTIONAGREEMENT,THEWARRANTS,THEREGISTRATIONRIGHTSAGREEMENTANDANYOTHERDOCUMENTSORAGREEMENTSEXECUTEDINCONNECTIONWITHTHETRANSACTIONSCONTEMPLATEDHEREUNDER“WARRANTSHARES”MEANSTHESHARESOFCOMMONSTOCKISSUABLEUPONEXERCISEOFTHEWARRANTS2VERIFICATIONOFINVESTORSUITABILITYUNDERREGULATIONDTHEUNDERSIGNEDUNDERSTANDSTHATINORDERTOSUBSCRIBEFORTHEUNITSINTHISOFFERING,THEUNDERSIGNEDMUSTBEAN“ACCREDITEDINVESTOR”ASDEFINEDINSECTION501OFREGULATIONDUNDERTHESECURITIESACTANDTHEUNDERSIGNEDHEREBYREPRESENTSANDWARRANTSTHATITISAN“ACCREDITEDINVESTOR”ASSUCHITEMISDEFINEDINRULE501APROMULGATEDUNDERTHESECURITIESACTFURTHERMORE,THECOMPANYUNDERSTANDSTHAT,ASACONDITIONTOTHECOMPANYSACCEPTANCEOFTHISSUBSCRIPTION,THEUNDERSIGNEDMUSTCOMPLETEAPURCHASERQUESTIONNAIREINTHEFORMATTACHEDHERETO二、合格投资者身份声明3AMOUNTANDMETHODOFPAYMENTTHEPURCHASEPRICEFORTHEUNITSISTHREEDOLLARSFIFTYCENTS350PERUNITANDSHALLBEPAIDBYTENDEROFACHECKMADEPAYABLETOSMARTHEATINCORWIRETRANSFEROFIMMEDIATELYAVAILABLEFUNDSTOTHESPECIALSEGREGATEDACCOUNTSETFORTHONTHELASTPAGEHEREOFTHE“SEGREGATEDACCOUNT”INTHEAMOUNTOFTHREEDOLLARSFIFTYCENTS350PERUNITMULTIPLIEDBYTHENUMBEROFUNITSPURCHASEDBYTHEUNDERSIGNEDASSETFORTHONTHESIGNATUREPAGEHEREOFTHE“PURCHASEPRICE”ALLPROCEEDSOFTHISOFFERINGWILLBEDEPOSITEDINTHESEGREGATEDACCOUNTANDWILLNOTBERELEASEDTOTHECOMPANYUNTILGROSSPROCEEDSOFATLEASTFIVEMILLIONDOLLARS5,000,000HAVEBEENDEPOSITEDINTOTHESEGREGATEDACCOUNTIFTHISAMOUNTISNOTRECEIVEDBEFOREJULY31,2008,ASSUCHDATEMAYBEEXTENDEDAS3PROVIDEDINTHEOFFERINGMEMORANDUM,THENTHEPURCHASEPRICESHALLBERETURNEDTOTHEUNDERSIGNEDINFULLWITHOUTINTERESTUNLESSTHECOMPANYDETERMINES,INITSSOLEDISCRETION,TOEXTENDTHEOFFERINGPERIODAFFILIATESOFPLACEMENTAGENTSANDTHECOMPANYMAYPURCHASEUNITSFORTHEIROWNACCOUNTSUCHPURCHASESWILLBEINCLUDEDINDETERMININGWHETHERTHEMINIMUMAMOUNTOFTHISOFFERINGHASBEENSOLD三、认购金额及支付方式此次发行每一认购单位的发行价格为35美元，支付方式为支票或者电汇。4ACCEPTANCEOFSUBSCRIPTION四、认购的接受ATHEUNDERSIGNEDUNDERSTANDSANDAGREESTHATTHECOMPANY,INITSSOLEDISCRETION,RESERVESTHERIGHTTOACCEPTORREJECTTHISORANYOTHERSUBSCRIPTIONFORUNITSINWHOLEORINPARTATANYTIMEPRIORTOTHECLOSINGASDEFINEDBELOW（一）投资人知悉并同意，在此次发行完成前，公司有权自行决定接受或拒绝投资人的认购；BINTHEEVENTTHATTHISSUBSCRIPTIONISREJECTEDINWHOLEORINPART,THECOMPANYSHALLPROMPTLYRETURNALLORTHEAPPLICABLEPORTIONOFTHEPURCHASEPRICEWITHOUTINTERESTTOTHEUNDERSIGNED,ASTHECASEMAYBE,ANDTHISSUBSCRIPTIONAGREEMENTSHALLTHEREAFTERHAVENOFORCEOREFFECTEXCEPTWITHRESPECTTOTHEPORTION,IFANY,OFTHISSUBSCRIPTIONTHATISACCEPTEDBYTHECOMPANY（二）在拒绝投资人认购的情况下，公司应当立即将已经收到认购款返还给投资人。5REGISTRATIONRIGHTS五、股票注册权CONCURRENTLYWITHTHEEXECUTIONOFTHISSUBSCRIPTIONAGREEMENT,THECOMPANYANDTHEUNDERSIGNEDHAVEENTEREDINTOAREGISTRATIONRIGHTSAGREEMENTREGARDINGTHESHARESANDTHEWARRANTSHARES在签订本协议的同时，公司应当与投资人一并签署一份股票注册权协议。6RESTRICTIONSONRESALEORTRANSFER六、二次出售或转让的限制4ATHEUNITS,SHARES,WARRANTSANDWARRANTSHARESHAVENOTBEENREGISTEREDUNDERTHESECURITIESACTORANYSTATESECURITIESLAWS,ANDMAYNOTBESOLDORTRANSFERREDUNLESSISUCHSALEORTRANSFERISSUBSEQUENTLYREGISTEREDTHEREUNDERIITHEUNDERSIGNEDSHALLHAVEDELIVEREDTOTHECOMPANYANOPINIONOFCOUNSELWHICHOPINIONANDCOUNSELSHALLBEREASONABLYACCEPTABLETOTHECOMPANYTOTHEEFFECTTHATTHESECURITIESTOBESOLDORTRANSFERREDMAYBESOLDORTRANSFERREDPURSUANTTOANEXEMPTIONFROMSUCHREGISTRATIONORIIITHESECURITIESARESOLDPURSUANTTORULE144PROMULGATEDUNDERTHESECURITIESACTORASUCCESSORRULE（一）此次发行的发行单位、发行股票、发行权证及行权股票在为按照1933年证券法或者其他州一级别的证券法律注册之前，不得再次出售或者转让，除非（1）已经办理了上述注册，（2）投资人能够向公司提供一份法律意见书，证明有关再次出售或转让依法得到豁免，（3）有关再次出售或转让是按照1933年证券法的144规则所进行的。BTHECERTIFICATESREPRESENTINGTHESHARESANDTHEWARRANTSHARESANDTHEWARRANTSSHALLEACHBEARRESTRICTIVELEGENDSINSUBSTANTIALLYTHEFOLLOWINGFORMANDASTOPTRANSFERORDERMAYBEPLACEDAGAINSTTRANSFEROFTHECERTIFICATESFORSUCHSECURITIES“THESECURITIESREPRESENTEDBYTHISCERTIFICATEHAVENOTBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDEDTHE“SECURITIESACT”,ORAPPLICABLESTATESECURITIESLAWS,ANDACCORDINGLYMAYNOTBEOFFEREDFORSALE,SOLDOROTHERWISETRANSFERREDINTHEABSENCEOFANEFFECTIVEREGISTRATIONSTATEMENTFORTHESECURITIESUNDERTHESECURITIESACTORINATRANSACTIONNOTSUBJECTTOTHEREGISTRATIONREQUIREMENTSOFTHESECURITIESACT,INEACHCASEINACCORDANCEWITHAPPLICABLESTATESECURITIESLAWSANDINTHECASEOFATRANSACTIONEXEMPTFROMREGISTRATION,THECOMPANYHASRECEIVEDANOPINIONOFCOUNSEL,INFORM,SUBSTANCEANDSCOPEREASONABLYACCEPTABLETOTHECOMPANY,THATREGISTRATIONISNOTREQUIREDUNDERTHESECURITIESACTANDUNDERALLAPPLICABLESTATESECURITIESLAWSORUNLESSSOLDPURSUANTTORULE144UNDERTHESECURITIESACT”7DELIVERYOFTHESTOCKCERTIFICATEANDWARRANTSTHECOMPANYWILLEXECUTEANDDELIVERCERTIFICATESREPRESENTINGTHESHARESANDWARRANTSTOTHESUBSCRIBERASSOONASPRACTICABLEAFTERTHEOCCURRENCEOFEACHOFTHEFOLLOWINGITEMSIACCEPTANCEOFTHESUBSCRIPTIONBYTHECOMPANYIIRECEIPTOFTHEPURCHASEPRICEINTOTHESEGREGATEDACCOUNTIIIACLOSINGOFTHEOFFERINGANDIVRELEASETOTHECOMPANYOFTHENETPROCEEDSOFTHEOFFERINGFROMTHESEGREGATEDACCOUNT七、股票及权证凭证的交付公司应当在下述条件满足的情况下向投资人签发并交付股票及权证凭证（一）收到投资人所交纳的认购款；5（二）认购款足额支付至专用帐户；（三）此次发行顺利完成；（四）公司从专用帐户取得全部发行融资金额。八、股票及权证凭证的交付8REPRESENTATIONSANDWARRANTIESTHEUNDERSIGNEDHEREBYACKNOWLEDGES,REPRESENTSANDWARRANTSTO,ANDAGREESWITH,THECOMPANYASFOLLOWSATHEUNDERSIGNEDUNDERSTANDSTHATTHEOFFERINGANDSALEOFTHEUNITSBYTHECOMPANYTOTHEUNDERSIGNEDISINTENDEDTOBEEXEMPTFROMREGISTRATIONUNDERTHESECURITIESACTBYVIRTUEOFSECTION42OFTHESECURITIESACTANDTHEPROVISIONSOFRULE506OFREGULATIONDPROMULGATEDTHEREUNDERAND,INACCORDANCETHEREWITHANDINFURTHERANCETHEREOF,THEUNDERSIGNEDREPRESENTSANDWARRANTSTOANDAGREESWITHTHECOMPANYASFOLLOWSITHEUNDERSIGNEDHASCAREFULLYREVIEWEDTHEOFFERINGMEMORANDUM,THISSUBSCRIPTIONAGREEMENTANDTHECONFIDENTIALPURCHASERQUESTIONNAIREATTACHEDHERETO,THEFORMOFSTOCKPURCHASEWARRANT,THEREGISTRATIONRIGHTSAGREEMENT,ANDUNDERSTANDSTHEINFORMATIONCONTAINEDINEACHSUCHDOCUMENTINCLUDING,BUTNOTLIMITEDTO,THEAUDITEDFINANCIALSTATEMENTSASOFDECEMBER31,2006AND2007ANDFORTHEYEARSTHENENDEDFORTAIYUASOPPOSEDTOTHECOMPANY,ANDTHEPROFORMACOMBINEDBALANCESHEETOFTHECOMPANYANDTAIYUASOFDECEMBER31,2007,THEPROFORMACOMBINEDSTATEMENTSOFOPERATIONSOFTHECOMPANYANDTAIYUFORTHEYEARENDEDDECEMBER31,2007,ANDTHEUNAUDITEDFINANCIALSTATEMENTSASOFMARCH31,2008ANDFORTHETHREEMONTHSTHENENDEDINCLUDEDINTHEOFFERINGMEMORANDUMIIALLDOCUMENTS,RECORDSANDBOOKSPERTAININGTOTHECOMPANYAND/ORTHISINVESTMENTTHATTHEUNDERSIGNEDHASREQUESTEDHAVEBEENMADEAVAILABLEFORINSPECTIONBYHIMAND/ORHISATTORNEY,ACCOUNTANTANDOTHERADVISORSIIITHEUNDERSIGNEDAND/ORHISADVISORSHAVEHADAREASONABLEOPPORTUNITYTOASKQUESTIONSOFANDRECEIVEINFORMATIONANDANSWERSFROMAPERSONORPERSONSACTINGONBEHALFOFTHECOMPANYCONCERNINGTHEOFFERINGOFTHEUNITSANDALLSUCHQUESTIONSHAVEBEENANSWEREDANDALLSUCHINFORMATIONHASBEENPROVIDEDTOTHEFULLSATISFACTIONOFTHEUNDERSIGNEDIVNEITHERTHEUNDERSIGNEDNORTHEUNDERSIGNEDSINVESTMENTADVISORS,IFANY,HAVEBEENFURNISHEDANYOFFERINGLITERATUREOTHERTHANTHEOFFERINGMEMORANDUMANDTHEEXHIBITSATTACHEDTHERETOANDTHEUNDERSIGNEDANDTHEUNDERSIGNEDSADVISORS,IFANY,HAVERELIEDONLYONTHEINFORMATIONCONTAINEDINTHEOFFERINGMEMORANDUMANDTHEEXHIBITSATTACHEDTHERETOANDTHEINFORMATION,ASDESCRIBEDINSUBPARAGRAPHSIIANDIIIABOVE,FURNISHEDORMADEAVAILABLETOTHEMBYTHECOMPANY6VNOORALORWRITTENREPRESENTATIONSHAVEBEENMADEANDNOORALORWRITTENINFORMATIONHASBEENFURNISHEDTOTHEUNDERSIGNEDORHISADVISORSINCONNECTIONHEREWITHTHATWEREINANYWAYINCONSISTENTWITHTHEINFORMATIONSETFORTHINTHEOFFERINGMEMORANDUMANDTHEEXHIBITSATTACHEDTHERETOVITHEUNDERSIGNEDISNOTSUBSCRIBINGFORTHEUNITSASARESULTOFORSUBSEQUENTTOANYADVERTISEMENT,ARTICLE,NOTICEOROTHERCOMMUNICATIONPUBLISHEDINANYNEWSPAPER,MAGAZINEORSIMILARMEDIAORBROADCASTOVERTELEVISIONORRADIO,ORPRESENTEDATANYSEMINARORMEETINGVIITHEUNDERSIGNEDACKNOWLEDGESTHATHEHASCONDUCTEDHISOWNINDEPENDENTEVALUATIONOFTHECOMPANYANDHASANALYZEDTHERISKSASSOCIATEDWITHANINVESTMENTINTHEUNITSANDHASBASEDHISDECISIONTOINVESTINTHEUNITSONTHERESULTSOFTHISEVALUATIONANDANALYSISVIIITHEUNDERSIGNEDSOVERALLCOMMITMENTTOINVESTMENTSTHATARENOTREADILYMARKETABLEISNOTDISPROPORTIONATETOTHEUNDERSIGNEDSNETWORTHANDTHEUNDERSIGNEDSINVESTMENTINTHECOMPANYWILLNOTCAUSESUCHOVERALLCOMMITMENTTOBECOMEDISPROPORTIONATETOTHEUNDERSIGNEDSNETWORTHIXIFTHEUNDERSIGNEDISANATURALPERSON,THEUNDERSIGNEDHASREACHEDTHEAGEOFMAJORITYINTHEJURISDICTIONINWHICHTHEUNDERSIGNEDRESIDES,HASADEQUATENETWORTHANDMEANSOFPROVIDINGFORTHEUNDERSIGNEDSCURRENTFINANCIALNEEDSANDPERSONALCONTINGENCIES,ISABLETOBEARTHESUBSTANTIALECONOMICRISKSOFANINVESTMENTINTHEUNITSFORANINDEFINITEPERIODOFTIME,HASNONEEDFORLIQUIDITYINSUCHINVESTMENTAND,ATTHEPRESENTTIME,COULDAFFORDACOMPLETELOSSOFSUCHINVESTMENTXTHEADDRESSSETFORTHBELOWISTHEUNDERSIGNEDSTRUEANDCORRECTRESIDENCEOR,IFNOTANINDIVIDUAL,DOMICILIARYADDRESSXITHEUNDERSIGNEDAHASSUCHKNOWLEDGEOF,ANDEXPERIENCEIN,BUSINESSANDFINANCIALMATTERSSOASTOENABLEHIMTOUTILIZETHEINFORMATIONMADEAVAILABLETOHIMINCONNECTIONWITHTHEOFFERINGOFTHEUNITSINORDERTOEVALUATETHEMERITSANDRISKSOFANINVESTMENTINTHEUNITSANDTOMAKEANINFORMEDINVESTMENTDECISIONWITHRESPECTTHERETO,BTHEUNDERSIGNEDHASCAREFULLYEVALUATEDTHERISKSOFINVESTINGANDCHASTHECAPACITY,EITHERALONE,ORWITHAPROFESSIONALADVISOR,TOPROTECTHISOWNINTERESTSINCONNECTIONWITHAPURCHASEOFTHEUNITSXIITHEUNDERSIGNEDISNOTRELYINGONTHECOMPANYWITHRESPECTTOTHEECONOMICCONSIDERATIONSOFTHEUNDERSIGNEDRELATINGTOTHISINVESTMENTINREGARDTOSUCHCONSIDERATIONS,THEINVESTORHASRELIEDONTHEADVICEOF,ORHASCONSULTEDWITH,ONLYHISOWNADVISORSTHEUNDERSIGNEDRECOGNIZESTHATTHEINFORMATIONFURNISHEDBYTHECOMPANYDOESNOTCONSTITUTEINVESTMENT,ACCOUNTING,LEGALORTAXADVICETHEUNDERSIGNEDISRELYINGONPROFESSIONALADVISORSFORSUCHADVICE7XIIITHEUNDERSIGNEDISACQUIRINGTHEUNITSSOLELYFORHISOWNACCOUNTASPRINCIPAL,FORINVESTMENTPURPOSESONLYANDNOTWITHAVIEWTOTHERESALEORDISTRIBUTIONTHEREOF,INWHOLEORINPART,ANDNOOTHERPERSONHASADIRECTORINDIRECTBENEFICIALINTERESTINSUCHUNITSXIVTHEUNDERSIGNEDUNDERSTANDSTHATTHECERTIFICATESEVIDENCINGOWNERSHIPOFTHESHARESANDTHEWARRANTSHARESANDTHEWARRANTSWILLEACHBEARARESTRICTIVELEGENDANDHAVENOTBEENREGISTEREDUNDERTHESECURITIESACTORANYSTATESECURITIESLAWS,ANDMAYNOTBESOLDORTRANSFERREDUNLESSISUCHSALEORTRANSFERISSUBSEQUENTLYREGISTEREDTHEREUNDERIITHEUNDERSIGNEDSHALLHAVEDELIVEREDTOTHECOMPANYANOPINIONOFCOUNSELWHICHOPINIONANDCOUNSELSHALLBEREASONABLYACCEPTABLETOTHECOMPANYTOTHEEFFECTTHATTHESECURITIESTOBESOLDORTRANSFERREDMAYBESOLDORTRANSFERREDPURSUANTTOANEXEMPTIONFROMSUCHREGISTRATIONORIIITHESECURITIESARESOLDPURSUANTTORULE144PROMULGATEDUNDERTHESECURITIESACTORASUCCESSORRULEXVTHEUNDERSIGNEDUNDERSTANDSTHATTHEPRICEOFTHEUNITSHASBEENDETERMINEDARBITRARILYBYTHECOMPANYANDMAYNOTBEINDICATIVEOFTHETRUEVALUEOFTHEUNITSTHEUNDERSIGNEDUNDERSTANDSTHATNOASSURANCESCANBEGIVENTHATTHESHARES,THEWARRANTSORTHEWARRANTSHARESCOULDBERESOLDBYTHESUBSCRIBERFORTHESUBSCRIPTIONPRICEORANYPRICEANDHE/SHE/ITHASMADEANINDEPENDENTDETERMINATIONOFTHEFAIRNESSOFTHESUBSCRIPTIONPRICEANDXVITHEUNDERSIGNEDACKNOWLEDGESTHATTHEINFORMATIONFURNISHEDBYTHECOMPANYORTHEPLACEMENTAGENTTOTHEUNDERSIGNEDORITSADVISORSINCONNECTIONWITHTHISOFFERINGISCONFIDENTIALANDNONPUBLICANDAGREESTHATALLSUCHINFORMATIONWHICHISMATERIALANDNOTYETPUBLICLYDISSEMINATEDBYTHECOMPANYSHALLBEKEPTINCONFIDENCEBYTHEUNDERSIGNEDANDNEITHERUSEDBYTHEUNDERSIGNEDFORTHEUNDERSIGNEDSPERSONALBENEFITOTHERTHANINCONNECTIONWITHTHISSUBSCRIPTION,NORDISCLOSEDTOANYTHIRDPARTY,EXCEPTTHEUNDERSIGNEDSLEGALANDOTHERADVISORSWHOSHALLBEADVISEDOFTHECONFIDENTIALNATUREOFSUCHINFORMATION,FORANYREASONPROVIDED,THATTHISOBLIGATIONSHALLNOTAPPLYTOANYSUCHINFORMATIONTHATIISPARTOFTHEPUBLICKNOWLEDGEORLITERATUREANDREADILYACCESSIBLEATTHEDATEHEREOF,IIBECOMESAPARTOFTHEPUBLICKNOWLEDGEORLITERATUREANDREADILYACCESSIBLEBYPUBLICATIONEXCEPTASARESULTOFABREACHOFTHISPROVISIONORIIIISRECEIVEDFROMTHIRDPARTIESEXCEPTFORTHIRDPARTIESWHODISCLOSESUCHINFORMATIONINVIOLATIONOFANYCONFIDENTIALITYOBLIGATIONXVIIIFTHEUNDERSIGNEDISANEMPLOYEEBENEFITPLANWITHINTHEMEANINGOFTHEEMPLOYEERETIREMENTINCOMESECURITYACTOF1974,ASAMENDED“ERISA”ATHEUNDERSIGNEDANDITSPLANFIDUCIARIESARENOTAFFILIATEDWITH,ANDAREINDEPENDENTOF,THECOMPANY,ANDAREINFORMEDOFANDUNDERSTANDTHECOMPANYSINVESTMENTOBJECTIVES,POLICIESANDSTRATEGIESBTHEUNDERSIGNEDREPRESENTSTHATTHEPURCHASEOFTHEUNITS8WILLNOTINVOLVEANYTRANSACTIONTHATISSUBJECTTOTHEPROHIBITIONOFSECTION406OFERISAORINCONNECTIONWITHWHICHAPENALTYCOULDBEIMPOSEDUNDERSECTION502IOFERISAORATAXCOULDBEIMPOSEDPURSUANTTOSECTION4975OFTHEINTERNALREVENUECODEOF1986,ASAMENDEDCTHETRUSTEEOROTHERPLANFIDUCIARYDIRECTINGTHEINVESTMENTIINMAKINGTHEPROPOSEDINVESTMENT,ISAWAREOFANDHASTAKENINTOCONSIDERATIONTHEDIVERSIFICATIONREQUIREMENTSOFSECTION404A1COFERISAANDIIHASCONCLUDEDTHATTHEPROPOSEDINVESTMENTINTHECOMPANYISPRUDENTANDISCONSISTENTWITHTHEOTHERAPPLICABLEFIDUCIARYRESPONSIBILITIESUNDERERISADTHISAGREEMENTHASBEENDULYEXECUTEDONTHEUNDERSIGNEDSBEHALFBYADULYDESIGNATEDNAMEDFIDUCIARYWITHINTHEMEANINGOFSECTION402A2OFERISAEIFTHEUNDERSIGNEDISANINDIVIDUALRETIREMENTACCOUNTIRAOREMPLOYEEBENEFITPLANNOTSUBJECTTOTITLEIOFERISA,SUCHASAGOVERNMENTALORCHURCHPLAN,THEOWNEROFTHEINDIVIDUALRETIREMENTACCOUNTOROTHERFIDUCIARYDIRECTINGTHEINVESTMENTOFTHEPLANHASCONCLUDEDTHATTHEPROPOSEDINVESTMENTINTHEUNITSISPRUDENTANDCONSISTENTWITHITSFIDUCIARYRESPONSIBILITIES,IFANYXVIIITHEUNDERSIGNEDHASCOMPLETEDANDRETURNEDTOTHECOMPANYAPURCHASERQUESTIONNAIRE,INTHEFORMATTACHEDASHERETOTHEINFORMATIONPROVIDEDBYTHEUNDERSIGNEDINTHEPURCHASERQUESTIONNAIREISTRUEANDCORRECTANDTHEUNDERSIGNEDUNDERSTANDSTHATTHECOMPANYISRELYINGUPONSUCHINFORMATIONINCONNECTIONWITHTHEPURCHASEOFTHEUNITSBYTHEUNDERSIGNEDBTHEUNDERSIGNEDRECOGNIZESTHATANINVESTMENTINTHEUNITSINVOLVESANUMBEROFSIGNIFICANTRISKSINCLUDING,BUTNOTLIMITEDTO,THOSERISKSSETFORTHUNDERTHE“RISKFACTORS“INTHEOFFERINGMEMORANDUMCTHEUNDERSIGNEDUNDERSTANDSTHATNOFEDERALORSTATEAGENCYHASPASSEDUPONTHEUNITSORMADEANYFINDINGORDETERMINATIONASTOTHEFAIRNESSOFTHISINVESTMENTINTHEUNITSDALLINFORMATIONTHATTHEUNDERSIGNEDHASHERETOFOREFURNISHEDANDFURNISHESHEREWITHTOTHECOMPANYARETRUE,CORRECTANDCOMPLETEASOFTHEDATEOFEXECUTIONOFTHISSUBSCRIPTIONAGREEMENTANDIFTHERESHOULDBEANYMATERIALCHANGEINSUCHINFORMATIONPRIORTOTHECLOSINGOFTHESALEOFTHEUNITSTHE“CLOSING”,THEUNDERSIGNEDWILLIMMEDIATELYFURNISHSUCHREVISEDORCORRECTEDINFORMATIONTOTHECOMPANYETHEUNDERSIGNEDCERTIFIESTHATITISNOT1ANONRESIDENTALIENOR2AFOREIGNCORPORATION,FOREIGNPARTNERSHIP,FOREIGNTRUSTORFOREIGNESTATEASTHOSETERMSAREDEFINED9INTHEINTERNALREVENUECODEOF1986,ASAMENDED,INCLUDINGINCOMETAXREGULATIONSTHE“CODE“FORPURPOSESOFUSFEDERALINCOMETAXATIONTHEUNDERSIGNEDAGREESTONOTIFYTHECOMPANYWITHIN60DAYSOFTHEDATEITBECOMESAFOREIGNPERSONORENTITYTHEUNDERSIGNEDFURTHERCERTIFIESTHATITSNAME,USTAXIDENTIFICATIONNUMBERHOMEADDRESSINTHECASEOFANINDIVIDUALANDBUSINESSADDRESSINTHECASEOFANENTITY,ASAPPEARINTHISAGREEMENTARETRUEANDCORRECTTHEUNDERSIGNEDFURTHERCERTIFIESTHATITISNOTSUBJECTTOBACKUPWITHHOLDINGBECAUSEEITHER1ITISEXEMPTFROMBACKUPWITHHOLDING,2ITHASNOTBEENNOTIFIEDBYTHEINTERNALREVENUESERVICE“IRS“THATITISSUBJECTTOBACKUPWITHHOLDINGASARESULTOFAFAILURETOREPORTALLINTERESTORDIVIDENDS,OR3THEIRSHASNOTIFIEDITTHATITISNOLONGERSUBJECTTOBACKUPWITHHOLDINGTHEUNDERSIGNEDUNDERSTANDSTHATTHESECERTIFICATIONS,WHICHAREMADEUNDERPENALTYOFPERJURY,MAYBEDISCLOSEDTOTHEIRSBYTHECOMPANYANDTHATANYFALSESTATEMENTSCONTAINEDINTHISPARAGRAPHCOULDBEPUNISHEDBYFINEAND/ORIMPRISONMENTFTHEUNDERSIGNEDREPRESENTSTHATNEITHERITNOR,TOITSKNOWLEDGE,ANYPERSONORENTITYCONTROLLING,CONTROLLEDBYORUNDERCOMMONCONTROLWITHTHEUNDERSIGNEDNORANYPERSONORENTITYHAVINGABENEFICIALINTERESTINTHEUNDERSIGNEDNORANYOTHERPERSONORENTITYONWHOSEBEHALFTHEUNDERSIGNEDISACTING1ISAPERSONORENTITYLISTEDINTHEANNEXTOEXECUTIVEORDERNO132242001ISSUEDBYTHEPRESIDENTOFTHEUNITEDSTATESEXECUTIVEORDERBLOCKINGPROPERTYANDPROHIBITINGTRANSACTIONSWITHPERSONSWHOCOMMIT,THREATENTOCOMMIT,ORSUPPORTTERRORISM,2ISNAMEDONTHELISTOFSPECIALLYDESIGNATEDNATIONALSANDBLOCKEDPERSONSMAINTAINEDBYTHEUSOFFICEOFFOREIGNASSETSCONTROLOFAC,3ISANONUSSHELLBANKORISPROVIDINGBANKINGSERVICESINDIRECTLYTOANONUSSHELLBANK,4ISASENIORNONUSPOLITICALFIGUREORANIMMEDIATEFAMILYMEMBERORCLOSEASSOCIATEOFSUCHFIGURE,OR5ISOTHERWISEPROHIBITEDFROMINVESTINGINTHECOMPANYPURSUANTTOAPPLICABLEUSANTIMONEYLAUNDERING,ANTITERRORISTANDA