RURAL ELECTRIFICATION FINANCING

CORPORATION
SUBSCRIPTION AGREEMENT
KNOW ALL MEN BY THESE PRESENT:
This AGREEMENT entered into this day of at , y
and
Bet!een:
ELECTRIC COOPERATIVE, INC. "herein #a$$ed %S&s#rier', re(resented
y its President .
)and)
RURAL ELECTRIFICATION FINANCING CORPORATION "herein #a$$ed %RE*+,', re(resented y
its Mana-in- .ire#tor Wi$fred L/ Bi$$ena /
WITNESSETH:
WHEREAS, RE*+ !as #reated to (ro0ide a road ased so&r#e of s&(($e1enta$ f&ndin- to e$e#tri#
#oo(erati0es so they 1i-ht a#hie0e -oa$s of (ro0idin- e$e#tri# ser0i#e to additiona$ #ons&1ers !ithin ea#h
#oo(erati0e2s #o0era-e area, ens&re that e$e#tri# ser0i#e is ade3&ate, de(enda$e, and of hi-h 3&a$ity, and
1eet #ons&1er satisfa#tion y #ontri&tin- to!ards reasona$y (ri#ed e$e#tri#ity4
WHEREAS, RE*+ is dedi#ated to (ro0idin- hi-h 3&a$ity finan#ia$ ser0i#e4
WHEREAS, RE*+ is interested in (ro0idin- $oan f&nds to 3&a$ified S&s#riers for 3&a$ified
(&r(oses &(on s&#h S&s#rier ein- deter1ined as 1eetin- re3&ire1ents to re#ei0e s&#h $oan f&nds in
a##ordan#e !ith (o$i#ies and (ro#ed&res as (res#ried fro1 ti1e to ti1e y RE*+, and4
WHEREAS, the S&s#rier is !i$$in- and a$e to #o11it to (&r#hase shares of #o11on and5or
(referred sto#6, and a-rees to 1a6e (ay1ent for s&#h shares of RE*+ for the (&r(ose of ein- #onsidered for
a0ai$1ent of $oans to e (ro0ided y RE*+4
NOW THERE*ORE, for and in #onsideration of #o0enants of the Parties and of ter1s and
#onditions hereinafter set forth, the Parties hereto a-ree as fo$$o!s:
ARTICLE I: DEFINITIONS
Se#tion 7/87 Whene0er &sed in this A-ree1ent, &n$ess the #onte9t other!ise re3&ires, the fo$$o!in-
ter1s sha$$ ha0e the fo$$o!in- 1eanin-:
%A-ree1ent, sha$$ 1ean this S&s#ri(tion A-ree1ent4
%A&dited *inan#ia$ State1ents, sha$$ 1ean finan#ia$ state1ents of the S&s#rier as a&dited y a
d&$y 3&a$ified +ertified P&$i# A##o&ntant of the Re(&$i# of the Phi$i((ines, s&#h a&dit ha0in- een
#ond&#ted in a##ordan#e !ith re3&ire1ents (ro1&$-ated y the Nationa$ E$e#trifi#ation Ad1inistration4
%Loan S&s#ri(tion, sha$$ #arry the 1eanin- as#ried to in Arti#$e :::, Se#tion ;/8< of this
A-ree1ent4
%Party,, or %Parties, sha$$ 1ean RE*+ or S&s#rier indi0id&a$$y "Party', or #o$$e#ti0e$y "Parties'4
%Pesos, or the si-n %PhP, sha$$ 1ean the +&rren#y of the Re(&$i# of the Phi$i((ines4
%=&arter$y, sha$$ 1ean three ";' #onse#&ti0e 1onths4
%Shares, sha$$ 1ean e0iden#e of o!nershi( in +a(ita$ of RE*+, ea#h ha0in- a (ar 0a$&e of One
Tho&sand Pesos "PhP 7,888' (er share4
%S&s#ried Shares, sha$$ 1ean Shares of RE*+ to e a#3&ired y the S&s#rier in a##ordan#e
!ith this A-ree1ent4
%S&s#ri(tion, sha$$ 1ean #o11it1ent y the S&s#rier to a#3&ire Shares in +a(ita$ of RE*+ in
a##ordan#e !ith this A-ree1ent4
%S&s#ri(tion Pri#e, sha$$ #arry the 1eanin- as#ried to in Arti#$e :::, Se#tion ;/87 of this
A-ree1ent/
ARTICLE II: SUBSCRIPTION REQUIREMENT
Se#tion </87 S&s#ri(tion Pro#ed&re and Re3&ire1ents
The S&s#rier sha$$ otain a reso$&tion fro1 its Board of .ire#tors a&thori>in- its s&s#ri(tion to
the shares of RE*+, e9e#&tion of this A-ree1ent, #o1($ete the a((ro(riate infor1ation, and affi9
a((ro(riate si-nat&re5s of a&thori>ed si-natories/ A #o(y of the Board Reso$&tion a&thori>in- the e9e#&tion of
this A-ree1ent sha$$ a##o1(any this A-ree1ent/
Se#tion </8< A##e(tan#e y RE*+
This A-ree1ent sha$$ e dee1ed to ha0e een a##e(ted and a((ro0ed y RE*+ &(on RE*+2s
e9e#&tion of this A-ree1ent/ A$$ s&s#ri(tion ri-hts and o$i-ations of the Parties sha$$ #o11en#e &(on d&e
e9e#&tion of this A-ree1ent y RE*+ and the S&s#rier4
ARTICLE III SUBSCRIPTION
Se#tion ;/87 :nitia$ S&s#ri(tion "herein #a$$ed %:nitia$ S&s#ri(tion,'
S&s#rier herey s&s#ries to Shares in RE*+ at One Tho&sand Pesos (er share/
*&$$ (ay1ent of the s&s#ri(tion $iai$ity d&e on a##o&nt of this :nitia$ S&s#ri(tion 1ay e 1ade &(on
e9e#&tion of this A-ree1ent, or o0er a fo&r)year (eriod as fo$$o!s: a' not $ess than ten (er#ent "78?' of the
tota$ a1o&nt of the s&s#ri(tion $iai$ity on a##o&nt of the :nitia$ S&s#ri(tion !ithin ten "78' !or6in- days
fro1 date of RE*+2s e9e#&tion on this A-ree1ent, and: ' the re1ainder of the &n(aid s&s#ri(tion $iai$ity
o0er a (eriod of fifteen "7@' e3&a$ 3&arter$y insta$$1ents as sho!n in the atta#hed S#hed&$e "Atta#h1ent :'/
S&s#rier, ho!e0er, 1ay (re(ay its s&s#ri(tion $iai$ities ear$ier than the s#hed&$ed (ay1ents/
Additiona$ Pro0ision for :nitia$ S&s#ri(tion
a/' :nitia$ S&s#ri(tion is not #ontin-ent &(on S&s#rier e#o1in- 3&a$ified for $oans fro1 RE*+
or a#t&a$$y re#ei0in- any $oans therefro14
/' S&s#rier 1&st 1a6e (ay1ents in a##ordan#e !ith Atta#h1ent : !itho&t need of #a$$5de1and
for (ay1ent and the shares #o0ered y the :nitia$ S&s#ri(tion sho&$d not e de#$ared
de$in3&ent in order to e9er#ise f&$$ 0otin- ri-hts o0er the sa1e/
#/' :n the e0ent, the S&s#rier fai$s to 1a6e any s&se3&ent (ay1ents in a##ordan#e !ith the
Loan and5or Mort-a-e A-ree1ent5s !ith RE*+, re-ard$ess of the a1o&nt of its
retained $i1ited o!nershi( o0er the shares of RE*+4
d/' :n the e0ent S&s#rier de#ides not to #ontin&e !ith its o!nershi( in RE*+2s
e3&ity, S&s#rier 1ay, &t s&Ae#t to the (ro0isions of (ara-ra(h "e' hereof,
se$$5#on0ey its S&s#ri(tion ri-hts and o$i-ations to another entity 3&a$ified to
e a ho$der5o!ner of +a(ita$5e3&ity of RE*+ of the sa1e #$ass of shares and
sha$$ e re$ie0ed of any f&rther o$i-ation &nder this A-ree1ent, (ro0ided it
does not 0io$ate or #ontra0ene any #or(orate restri#tions on o!nershi( and
dis(osa$ of shares4
e/' S&s#rier a-rees it !i$$ retain o!nershi( of shares s&s#ried &nder this
:nitia$ S&s#ri(tion for a (eriod e9tendin- at $east three ";' years eyond fina$
(rin#i(a$ (ay1ent of its $oan o$i-ations to RE*+/ After this three ";' year
(eriod, these shares 1ay e so$d5#on0eyed to another entity 3&a$ified to e a
ho$der5o!ner of +a(ita$5e3&ity of RE*+ in a##ordan#e !ith RE*+ Board
(res#ried (o$i#ies on +a(ita$ o!nershi( and dis(osa$4
Se#tion ;/8</ +o11it1ent to S&s#rie
The S&s#rier herey fir1$y #o11its to s&s#rie to, and (ay in f&$$ s&#h
additiona$ shares in RE*+ !hi#h is e3&i0a$ent to a (er#enta-e of the $oans !hi#h it sha$$
otain fro1 RE*+/ S&#h (er#enta-e of the additiona$ shares to e s&s#ried "the %Loan
S&s#ri(tion,' is initia$$y set at fi0e (er#ent "@?' of the tota$ $oan a1o&nt as 1ay e
-ranted y RE*+ s&Ae#t to RE*+2s ri-ht to #han-e said (er#enta-e/ The S&s#rier is not
o$i-ed to otain $oans fro1 RE*+ nor to (ay for its s&s#ri(tion $iai$ities &nder this
+o11it1ent to S&s#rie &nti$ oth (arties ha0e a-reed and e9e#&ted oth the $oan
a-ree1ent5s #o0erin- the $oans to e -ranted to the S&s#rier and the S&s#ri(tion
A-ree1ent to e e9e#&ted (&rs&ant to the ter1s of this Se#tion ;/8</ Pay1ents y the
S&s#rier of its s&s#ri(tion $iai$ities on a##o&nt of this Loan S&s#ri(tion, sha$$ e 1ade
a&to1ati#a$$y to RE*+ as ded&#tions fro1 the initia$ $oan (ro#eeds 1ade to the S&s#rier
y RE*+ and the S&s#rier herey -i0es RE*+ the a&thority to retain s&#h a1o&nts fro1
said initia$ $oan (ro#eeds as 1ay e ne#essary to f&$$y (ay for its o$i-ations on a##o&nt of
the Loan S&s#ri(tion/
Se#tion ;/8; A##e(tan#e and :ss&an#e of Shares
A##e(tan#e and iss&an#e of Shares sha$$ e -o0erned as fo$$o!s:
B Shares of RE*+ e0iden#in- the :nitia$ S&s#ri(tion sha$$ on$y e iss&ed to the
S&s#rier after a$$ (ay1ents d&e on the :nitia$ S&s#ri(tion is re#ei0ed y RE*+4
B Shares (&r#hased as a (art of the Loan S&s#ri(tion sha$$ on$y e iss&ed to the
S&s#rier after a$$ (ay1ents on a##o&nt of said Loan S&s#ri(tion re#ei0ed y
RE*+4
B :ss&an#e and de$i0ery of Shares to the S&s#rier sha$$ e #ontin-ent &(on
a((ro0a$ y the Se#&rities and E9#han-e +o11ission of the e9e1(tion of
S&s#ried Shares fro1 the re-istration re3&ire1ents of the Se#&rities Re-&$ation
+ode/
Se#tion ;/8C *or1 of Shares :ss&ed y RE*+
Shares iss&ed on a##o&nt of the :nitia$ S&s#ri(tion and the Loan S&s#ri(tion sha$$
e +o11on shares &nti$ a$$ +o11on shares a&thori>ed y the Arti#$es of :n#or(oration are
iss&ed/ After a$$ +o11on shares are iss&ed, s&se3&ent shares iss&ed sha$$ e Preferred
shares/
Se#tion ;/8@ Ri-ht to A#3&ire Additiona$ Shares of RE*+
This A-ree1ent does not in any !ay $i1it the ai$ity of the S&s#rier to a#3&ire
additiona$ Shares of RE*+ in a##ordan#e !ith the By)La!s and (o$i#ies of RE*+/
Se#tion ;/8D *ai$&re to Otain or Re#ei0e Loans
*ai$&re of S&s#rier to otain or re#ei0e $oans fro1 RE*+ !i$$ not affe#t in any
!ay its o$i-ations for the (ay1ent of s&s#ri(tion $iai$ity in res(e#t of the :nitia$
S&s#ri(tion &nder this A-ree1ent/
Se#tion ;/8E Pay1ent of S&s#ri(tion O$i-ations
Article IV: MISCELLANEOUS
Se#tion C/87 Noti#es
Any noti#e or re3&est re3&ired or (er1itted to e -i0en or 1ade &nder this
A-ree1ent to either Party hereto sha$$ e in !ritin-/ S&#h noti#e or re3&est sha$$ ha0e een
dee1ed to ha0e een d&$y -i0en or 1ade !hen it sha$$ ha0e een de$i0ered y hand,
air1ai$, te$e9, or fa#si1i$e to the Party to !hi#h it is addressed at s&#h Party2s address
s(e#ified e$o! or at s&#h other address as s&#h Party sha$$ ha0e desi-nated y noti#e to
the Party -i0in- s&#h noti#e or 1a6in- s&#h re3&est/
*or the S&s#rier: Attention:
Address:
*a#si1i$e:
*or RE*+: Attention: Mr. Wilre! L. Bille"#
Address: S$ite %&'(%&) OMM * Citr# Bl!+.
N,. -. S#" Mi+$el A/e"$e, Orti+#0
Ce"ter
P#0i+ Cit1
*a#si1i$e: 2&)3 4-56-44% ( 2&)3 4756'.58
Se#tion C/8< No de$ay in e9er#isin-, or o1ission to e9er#ise, any ri-ht, (o!er or (ri0i$e-e &nder this
A-ree1ent sha$$ o(erate as a !ai0er thereof, nor sha$$ any sin-$e or (artia$ e9er#ise of any ri-ht, (o!er or
(ri0i$e-e $i1it any f&rther e9er#ise thereof, or the e9er#ise or another ri-ht, (o!er or (ri0i$e-e4
Se#tion C/8; This A-ree1ent, #ontains the entire a-ree1ent et!een the S&s#rier and RE*+
#on#ernin- the ter1 and #onditions of any s&s#ri(tion of shares y the S&s#rier/ No a1end1ent or
1odifi#ation of this A-ree1ent sha$$ e effe#ti0e &n$ess d&$y set forth in !ritin- e9e#&ted y d&$y a&thori>ed
re(resentati0es of the Parties4
Se#tion C/8C This A-ree1ent sha$$ e -o0erned y, and #onstr&ed in a##ordan#e !ith the $a!s of the
Re(&$i# of the Phi$i((ines/
:N W:TNESS WHEREO*, the Parties hereto, a#tin- thro&-h their re(resentati0es d&$y a&thori>ed,
ha0e #a&sed this A-ree1ent to e si-ned in their res(e#ti0e na1es and to e de$i0ered as of the day and year
first ao0e !ritten/
ELECTRIC COOPERATIVE, INC/
By:
President
" Printed Na1e' "Tit$e'
"Si-nat&re' ".ate'
RURAL ELECTRIFICATION FINANCING CORPORATION
By: WILFRED L. BILLENA 9M#"#+i"+
Direct,rF "Printed Na1e' "Tit$e'
"Si-nat&re' ".ate'
A+KNOWLE.GMENT
REPGBL:+ O* THE PH:L:PP:NES'
'S/S/
BE*ORE ME, this
Phi$i((ines, (ersona$$y a((eared:
day of <8 in the +ity of ,
Na1es +T+5Pass(ort N&1ers .ate5P$a#e of :ss&e
E$e#tri# +oo(erati0e, :n#/
By:
R&ra$ E$e#trifi#ation *inan#in- +or(oration
By:
a$$ 6no!n to 1e and to 1e 6no!n to e the sa1e (ersons !ho e9e#&ted the fore-oin- S&s#ri(tion
A-ree1ent #onsistin- of (a-es in#$&din- the (a-e in !hi#h this A#6no!$ed-1ent is !ritten and they
a#6no!$ed-ed to 1e that the sa1e is their free and 0o$&ntary a#t and deed as !e$$ as that of the entities !hi#h
they res(e#ti0e$y re(resent/
W:TNESS MY HAN. AN. SEAL on the date and at the ($a#e first ao0e)!ritten/
.o#/ No/
Pa-e No/
Boo6 No/
Series of <8 /
Atta#h1ent :
S$:0cri;ti," A+ree<e"t 6 Sc=e!$le , P#1<e"t0
.&e .ate A1o&nt
"To e +o1($eted y RE*+'