Document:

ex402.htm

    Exhibit
4.02

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY
STATE AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR
PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, WHICH OPINION SHALL BE REASONABLY ACCEPTABLE TO THE
ISSUER.

     

    AMBER
READY, INC.

     

    18% SUBORDINATED SECURED
CONVERTIBLE NOTE

     

    
    

     

    
      	$____________	 Rockaway, New
      Jersey

    

     

    Dated as
of:  June 30, 2009

     

    In consideration of the receipt of
$_________, the
undersigned, AMBER Ready, Inc., a Nevada corporation (“Issuer”), hereby promises
to pay, in accordance with the Subscription Agreement (the “Subscription
Agreement”), dated as of June 30, 2009, by and between Issuer and ____________
(“Purchaser”), on June 30, 2012 (the “Maturity Date”), the principal amount of
__________ ($_______) Dollars, unless this Note is earlier converted into Units
(as defined in Section 1.1(b) below) in accordance with Section 1.2 or Section
3, and interest shall accrue hereon from the date hereof and be payable as
provided herein, unless earlier converted in accordance with Section 1.2 or
Section 3 hereof or earlier repaid in accordance with Section 1.4
hereof.

     

    This Note is the subordinated secured
convertible promissory note referred to in the Subscription Agreement and is
entitled to the benefits thereof, is secured as provided in the Security
Agreement (as defined herein) and is subject to conversion as set forth in
Section 1.2 hereof.  This Note, and all representations, warranties,
covenants and agreements contained in the Subscription Agreement, shall be
binding upon Issuer and its successors and assigns.

     

    This Note is one of a series of
subordinated secured convertible promissory notes of like tenor and ranking
(collectively, the “Subordinated Notes” or the “Notes”) made by the Issuer in
favor of certain investors dated of even date herewith, and issued, from time to
time, on and after the date hereof, all upon terms set forth in that certain
Confidential Private Placement Memorandum, dated June 10, 2009, as same may be
amended or supplemented from time to time (the “Memorandum”), which have been
issued by the Issuer.

     

    By its execution of the Subscription
Agreement in the form attached to the Memorandum as Annex A, the
Purchaser has authorized Hudson Asset Partners, LLC, a Delaware limited
liability company, to act as collateral agent (the “Collateral Agent”) on behalf
of the Purchaser and other purchasers of the Notes, and in such capacity to
enter into a Security Agreement with the Issuer, as the same may be amended,
modified, restated or supplemented from time to time (the “Security Agreement”),
and to exercise for the benefit of the Purchaser all rights, powers and remedies
provided to it, under or pursuant to the Security Agreement including, without
limitation, those available upon a Default Event (as defined in Section 2
hereof), subject always to the terms, conditions, limitations and restrictions
provided in the Security Agreement.

     

    
      
        
        

      

      
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    1.           Terms of the
Note.

     

    1.1           Interest; Interest Rate;
Payment.

     

    (a) This Note shall bear interest at
the rate of eighteen (18%) percent (the “Interest Rate”) per annum based on a
360-day year.  Interest shall be payable quarterly in arrears, with
the first such payment of interest due and payable on the first business day of
the first calendar quarter following the issuance of this Note, and subsequent
payments of interest shall be due and payable on the first business day (each,
an “Interest Payment Date”) of each calendar quarter thereafter.

     

    (b) Issuer, at its option, may pay
interest in either (i) cash or (ii) units (“Units”) of its securities. Each Unit
will consist of (i) one share of common stock, par value $0.0001 per share
(“Common Stock”) of the Issuer (the “Shares”) and (ii) three (3) common stock
purchase warrants to purchase three (3) shares of Common Stock, exercisable for
a period of five (5) years at an exercise price of $1.50 per share (the
“Warrants”) provided however, that no interest payments hereunder shall be made
in cash during any such time as Issuer has elected to make interest payments
under the Senior Notes (as hereinafter defined) in the units that the Senior
Notes are convertible into.  If Issuer is paying interest through the
issuance of Units, it shall do so at the Unit Conversion Price, as defined
below.  No fractional Units shall be issued as interest.  In
lieu of any fractional securities underlying the Units to which Purchaser would
otherwise be entitled, Issuer shall round up as nearly as practicable to the
nearest whole number the number of Units to be issued as interest.

     

    (c) All monetary payments to be made by
Issuer hereunder shall be made in lawful money of the United States by check or
wire transfer of immediately available funds.

     

    (d) If all or a portion of the
principal amount of this Note or any interest payable thereon shall not be
repaid when due, whether on the Maturity Date, by acceleration or otherwise,
such overdue amounts shall bear interest at a rate per annum that is three (3%)
percent above the Interest Rate (i.e., 21%) from the
date of such non-payment until such amount is paid in full (as well after as
before judgment).

     

    1.2           Mandatory
Conversion.  In addition to the optional conversion provisions
set forth in Section 3 hereof, upon the addition by Issuer, at any time within
18 months after April 1, 2009 (the “Measuring Date”), of 500,000 new Qualified
Subscribers (as hereinafter defined) and (ii) Issuer being Cash Flow Positive
(as hereinafter defined) no later than the Measuring Date (the addition of such
minimum number of new Qualified Subscribers and Issuer being Cash Flow Positive
no later than the Measuring Date are collectively referred to as the
“Conditions”), the entire principal of and all interest accrued and owing on
this Note shall automatically be converted, without any action on the part of
Purchaser, into Units at the Unit Conversion Price (as defined hereinafter), as
of the date of the Issuer achieving the Conditions.  A Qualified
Subscriber shall mean a subscriber for Issuer’s services who has paid at least
$25.00 to Issuer during the 18 months preceding the Measuring
Date.  Issuer being “Cash Flow Positive” no later than the Measuring
Date shall mean that during any three month period prior to the Measuring Date,
Issuer’s business, operated in the ordinary course consistent with past
practice, has generated cash receipts during such period in excess of Issuer’s
cash disbursements during such period.  Issuer will notify Purchaser
of the achievement of the Conditions within a reasonable period of time
thereafter.  For purposes hereof, the “Unit Conversion Price” shall
mean $1.00 per Unit.  Upon conversion, Purchaser shall be entitled to
receive the number of Units calculated by dividing all principal and interest
accrued and owing on this Note by the Unit Conversion Price.  No
fractional Units shall be issued upon conversion.  In lieu of any
fractional securities underlying the Units to which Purchaser would otherwise be
entitled, Issuer shall, at its option, (i) pay cash in an amount equal to such
fraction multiplied by the Unit Conversion Price or (ii) round up as nearly as
practicable to the nearest whole number the number of Units to be
issued.

     

    
      
        
        

      

      
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    1.3           Conversion
Procedures.  Upon conversion of this Note as provided in
Section 1.2 hereof, Purchaser shall surrender this Note, appropriately endorsed,
to Issuer at Issuer’s principal office, accompanied by written notice to Issuer
setting forth the name or names (with address(es)) in which the Units issuable
upon such conversion shall be issued and registered on the books of
Issuer.  For purposes hereof, the “Conversion Date” shall be deemed to
be the date of the Issuer achieving the Conditions.  Within a
reasonable period of time after the Conversion Date, Issuer shall deliver to
Purchaser instruments representing the Units.  This Note shall be
marked cancelled on the books of Issuer as of the Conversion Date, whether or
not surrendered.

     

    1.4           Payment Rights Upon Merger,
Consolidation, Etc.  If, at any time, prior to the Maturity
Date, Issuer proposes to consolidate with, or merge into, another corporation or
entity, or to effect any sale or conveyance to another corporation or other
entity of all or substantially all of the assets of Issuer, or effect any other
corporate reorganization, in which the stockholders of Issuer immediately prior
to such consolidation, merger, reorganization or sale would own capital stock of
the entity surviving such merger, consolidation, reorganization or sale
representing less than fifty (50%) percent of the combined voting power of the
outstanding securities of such successor or combined entity immediately after
such consolidation, merger, reorganization or sale (a “Liquidation Event”), then
Issuer shall provide Purchaser with at least ten (10) days’ prior written notice
of any such proposed action, and Purchaser will, at its option, have the right
to demand immediate payment of all amounts due and owing under this
Note.  Purchaser will give Issuer written notice of such demand within
five (5) days after receiving notice of the Liquidation Event.  All
amounts (including all accrued and unpaid interest) due and owing under this
Note shall be paid by Issuer to Purchaser within five (5) days from the date of
such written notice by Purchaser via wire transfer(s) of immediately available
funds, in accordance with written instructions provided to Issuer by
Purchaser.

     

    1.5           Other
Assurances.  Issuer shall not, by amendment of its Articles of
Incorporation or By-laws or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by Issuer, but shall at all
times in good faith assist in the carrying out of all the provisions of this
Note and in taking of all such actions as may be necessary or appropriate in
order to protect the rights of Purchaser herein against impairment.

     

    
      
        
        

      

      
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    1.6           Security Interest;
Subordination.

     

    (a)           This
Note shall be secured by a second lien on the assets of the Issuer, as set forth
herein and in the Security Agreement.

     

    (b)           Issuer
has previously issued $11,999,982.00 principal amount (the “Senior Principal
Amount”) of 18% senior convertible secured promissory notes (the “Senior
Notes”), the holders of which Senior Notes have a first priority lien and
security interest in and to the assets of Issuer which is senior to the lien and
security interest granted by Issuer to the Collateral Agent under the Security
Agreement. The security interest to be granted for the benefit of the Purchaser
and other holders of Subordinated Notes shall be subordinate to the security
interest for the benefit of the holders of the Senior Notes, on the terms set
forth herein and in the Security Agreement.

    

    (c)           All
obligations of the Issuer to the holders of Senior Notes under the terms of the
Senior Notes, howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent or now or hereafter existing, or due or to
become due, are referred to as “Senior Liabilities”.  All obligations
of Issuer to the Purchaser and other holders of the Subordinated Notes under the
terms thereof (in each case, including any interest, fees or penalties related
thereto), howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent or now or hereafter existing, or due or to become due,
are referred to as “Junior Liabilities”.  It is expressly understood
and agreed that the term “Senior Liabilities” shall include, without limitation,
any and all interest, fees and penalties accruing on any of the Senior
Liabilities after the commencement of any proceedings referred to in
subparagraph (f) below, notwithstanding any provision or rule of law that might
restrict the rights of the holder of Senior Notes, as against Issuer, to collect
such interest, fees or penalties, as the case may be.

     

    (d)           Except
as expressly otherwise provided herein (or as the holders of Senior Notes may
otherwise expressly consent in writing), the payment of the Junior Liabilities
shall be postponed and subordinated to the payment in full of all Senior
Liabilities. Furthermore, no payments or other distributions whatsoever in
respect of any Junior Liabilities shall be made, nor shall any property or
assets of Issuer be applied to the purchase or other acquisition or retirement
of any Junior Liability.  Notwithstanding anything to the contrary
contained in this paragraph or elsewhere herein, Issuer may make regularly
scheduled principal and interest payments, as the case may be, to the holders of
the Subordinated Notes, so long as (i) no Event of Default (as defined in the
Senior Notes) has occurred and is continuing at the time of any such payment and
(ii) the amount of such regularly scheduled principal payments and the rate of
interest, in each case, with respect to the Subordinated Notes is not increased
from that in effect on the date hereof.

     

    (e)           Purchaser
and each subsequent holder of this Subordinated Note hereby subordinates all
security interests that have been, or may be, granted by Issuer to the
Collateral Agent in respect of the Junior Liabilities, to the security interests
granted by Issuer in respect of the Senior Liabilities.

     

    
      
        
        

      

      
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    (f)           In
the event of any dissolution, winding up, liquidation, readjustment,
reorganization or other similar proceedings relating to Issuer or to its
creditors, as such, or to its property (whether voluntary or involuntary,
partial or complete, and whether in bankruptcy, insolvency or receivership, or
upon an assignment for the benefit of creditors, or any other marshalling of the
assets and liabilities of Issuer, or any sale of all or substantially all of the
assets of Issuer, or otherwise), the Senior Liabilities shall first be paid in
full before any holder of Subordinated Notes shall be entitled to receive and to
retain any payment or distribution in respect of any Junior
Liability.

     

    (g)         The
holders of Senior Notes may, from time to time, at their sole discretion and
without notice to any holder of Subordinated Notes, take any or all of the
following actions:  (a) retain or obtain a security interest in any
property to secure any of the Senior Liabilities; (b) retain or obtain the
primary or secondary obligation of any other obligor or obligors with respect to
any of the Senior Liabilities; (c) extend or renew for one or more periods
(whether or not longer than the original period), alter or exchange any of the
Senior Liabilities, or release or compromise any obligation of any nature of any
obligor with respect to any of the Senior Liabilities; and (d) release its
security interest in, or surrender, release or permit any substitution or
exchange for, all or any part of any property securing any of the Senior
Liabilities, or extend or renew for one or more periods (whether or not longer
than the original period) or release, compromise, alter or exchange any
obligations of any nature of any obligor with respect to any such property,
provided however, that at no time shall the principal amount under the Senior
Liabilities exceed the Senior Principal Amount.

     

    (i)           No
delay on the part of the holders of Senior Notes or their representatives or
agents in the exercise of any right or remedy shall operate as a waiver of such
right or remedy, and no single or partial exercise by the holders of Senior
Notes of any right or remedy shall preclude other or further exercise of such
right or remedy or the exercise of any other right or remedy; nor shall any
modification or waiver of any of the provisions hereof be binding upon the
holders of Senior Notes except as expressly set forth in a writing duly signed
and delivered on behalf of the holders of Senior Notes.

     

    (j)           No
claim or defense as to the invalidity or unenforceability of the provisions of
this Section 1.6 shall affect or impair the agreements and obligations of any
holder of Subordinated Notes under this Section 1.6.

     

    (k).         This
Section 1.6  shall be binding upon Purchaser and each subsequent
holder of Subordinated Notes and upon the heirs, legal representatives,
successors and assigns of Purchaser and each subsequent holder of Subordinated
Notes, and shall inure to the benefit of, and be enforceable by, the successors
and assigns of the holders of Senior Notes.

     

    
      
         

      

      
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    2.           Events of
Default.  If any of the following events (each, a “Default
Event”) shall occur and be continuing:

     

    (i)           Issuer
shall fail to pay any amount payable under this Note, including but limited to
installments of interest and/or principal, within three (3) business days after
such payment becomes due (at the Maturity Date, an Interest Payment Date or
other date) in accordance with the terms hereof;

     

    (ii)           Issuer
shall fail to pay when due (following the expiration of applicable notice and
cure periods), whether upon acceleration, prepayment obligation or otherwise,
any indebtedness for money due, individually or in the aggregate, involving an
amount in excess of $50,000;

     

    (iii)           Any
representation, warranty, covenant or agreement made by Issuer in the
Subscription Agreement, the Security Agreement, the Placement Agent Agreement
between Issuer and the Placement Agent or this Note was incorrect in any
material respect on or as of the date made;

     

    (iv)           Issuer
shall default, in any material respect, in the observance or performance of any
other agreement contained in this Note or any other agreement or instrument
contemplated by this Note or the Subscription Agreement, and such default shall
continue unremedied for a period of fifteen (15) days after written notice to
Issuer of such default;

     

    (v)           (a)
Issuer shall commence any case, proceeding or other action (x) under any
existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, conservatorship or relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (y) seeking appointment or a receiver,
trustee, custodian, conservator or other similar official for it or for all or
any substantial part of its assets, or Issuer shall make a general assignment
for the benefit of its creditors; or (b) there shall be commenced against Issuer
any case, proceeding or other action of a nature referred to in clause (a) above
that (A) results in the entry of an order for relief of any such adjudication of
appointment or (B) remains undismissed, undischarged or unbonded for a period of
ninety (90) days; or (c) there shall be commenced against Issuer any case,
proceeding other action seeking issuance of a warrant of attachment, execution,
distrait or similar process against all or any substantial part of its assets
that results in the entry of an order for any such relief which shall not have
been vacated, discharged, or stayed or bonded pending appeal within ninety (90)
days from the entry thereof; or (d) Issuer shall take any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in any of the
acts set forth in clauses (a), (b) or (c) above; or (e) Issuer shall generally
not, or shall be unable to, or shall admit in writing its inability to, pay its
debts as they become due, then, and in any such event, (x) if such event is a
Default Event specified in subsection (v) above of this Section 2, automatically
this Note (with all accrued and unpaid interest thereon) and all other amounts
owing under this Note shall immediately become due and payable, and (y) if such
event is any other Default Event, Purchaser may, by written notice to Issuer,
declare this Note (with all accrued and unpaid interest thereon) and all other
amounts owing under this Note to be due and payable forthwith, whereupon the
same shall immediately become due and payable.  Except as expressly
provided above in this Section 2, presentation, demand, protest and all other
notices of any kind are hereby expressly waived by Issuer.

     

    
      
        
        

      

      
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    3.           Conversion.

     

    3.1           Optional
Conversion.  The Purchaser shall be entitled, at its option, to
convert all or any part of the principal amount, plus accrued but unpaid
interest, of the Note into Units at the Unit Conversion Price.  No
fractional Units shall be issued upon conversion.  In lieu of any
fractional securities underlying the Units to which Purchaser would otherwise be
entitled, Issuer shall, at its option, (i) pay cash in an amount equal to such
fraction multiplied by the Unit Conversion Price or (ii) round up as nearly as
practicable to the nearest whole number the number of Units to be issued.  To convert this Note,
the Purchaser hereof shall deliver written notice thereof, substantially in the
form of Exhibit A to this Note, with appropriate insertions (the
“Conversion Notice”), to the Issuer at its address as set forth
herein.  The date upon which the conversion shall be effective (the
“Conversion Date”) shall be deemed to be the date set forth in the Conversion
Notice.  Any conversion of any portion of the Note to Units shall be
deemed to be a pre-payment of principal, without any penalty, and shall be
credited against any future payments of principal in the order that such
payments become due and payable.

    

    3.2           Reservation of Common
Stock.  The Issuer shall reserve and keep available out of its
authorized but unissued shares of Common Stock, solely for the purpose of
conversion of this Note and the exercise of the Warrants, that number of shares
of Common Stock equal to the sum of (i) the number of shares of Common Stock
included in the Units into which the Note is convertible based upon the
Conversion Price, plus (ii) the number of shares of Common Stock for which the
Warrants are exercisable from time to time based upon the Warrant exercise price
in effect at the Conversion Date.

    

    3.3.           Adjustment of Conversion
Price.

     

    (a)           The
Conversion Price shall be subject to adjustment from time to time upon the
occurrence of certain events described in this Section 3.3; provided, that
notwithstanding the provisions of this Section 3.3, the Issuer shall not be
required to make any adjustment if and to the extent that such adjustment would
require the Issuer to issue a number of shares of Common Stock in excess of its
authorized but unissued shares of Common Stock, less all amounts of Common Stock
that have been reserved for issue upon the conversion of all outstanding
securities convertible into shares of Common Stock and the exercise of all
outstanding options, warrants and other rights exercisable for shares of Common
Stock.  If the Issuer does not have the requisite number of authorized
but unissued shares of Common Stock to make any adjustment, the Issuer shall use
its commercially best efforts to obtain the necessary stockholder consent to
increase the authorized number of shares of Common Stock to make such an
adjustment pursuant to this Section 3.3.

     

                          (i)           Subdivision or Combination
of Stock. In case the Issuer shall at any time subdivide (whether by way
of stock dividend, stock split or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Conversion Price in effect
immediately prior to such subdivision shall be proportionately reduced, and
conversely, in case the outstanding shares of Common Stock of the Issuer shall
be combined (whether by way of stock combination, reverse stock split or
otherwise) into a smaller number of shares, the Conversion Price in effect
immediately prior to such combination shall be proportionately
increased.  The Conversion Price shall be readjusted in the same
manner upon the happening of any successive event or events described in this
Section 3.3(a)(i).

     

    
      
        
        

      

      
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                          (ii)           Dividends in Stock,
Property, Reclassification. If at any time, or from time to time, all of
the holders of Common Stock (or any shares of stock or other securities at the
time receivable upon the conversion of this Note) shall have received or become
entitled to receive, without payment therefore:

    

                                    (A)           any
shares of stock or other securities that are at any time directly or indirectly
convertible into or exchangeable for Common Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution, or

    

                                    (B)           additional
stock or other securities or property (including cash) by way of spin-off,
split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock issued as a stock split or
adjustments in respect of which shall be covered by the terms of Section
3.3(a)(i) above),

    

    then and in each such case, the
Conversion Price shall be adjusted proportionately, and the Purchaser hereof
shall, upon the conversion of this Note, be entitled to receive, in addition to
the number of shares of Common Stock receivable thereupon, and without payment
of any additional consideration therefor, the amount of stock and other
securities and property (including cash in the cases referred to above) that
such Purchaser would hold on the date of such conversion had such Purchaser been
the holder of record of such Common Stock as of the date on which holders of
Common Stock received or became entitled to receive such shares or all other
additional stock and other securities and property.  The Conversion
Price shall be readjusted in the same manner upon the happening of any
successive event or events described in this Section 3.3(a)(ii).

    

                          (iii)           Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization,
reclassification or reorganization of the capital stock of the Issuer, or any
consolidation or merger of the Issuer with another corporation, or the sale of
all or substantially all of its assets or other transaction shall be effected in
such a way that holders of Common Stock shall be entitled to receive stock,
securities, or other assets or property (an “Organic Change”), then, as a
condition of such Organic Change, lawful and adequate provisions shall be made
by the Issuer whereby the Purchaser hereof shall thereafter have the right to
purchase and receive (in lieu of the shares of the Common Stock of the Issuer
immediately theretofore purchasable and receivable upon the conversion of the
rights represented by this Note) such shares of stock, securities or other
assets or property as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such Common Stock equal to the number of
shares of such stock immediately theretofore purchasable and receivable assuming
the full exercise of the rights represented by this Note. In the event of any
Organic Change, appropriate provision shall be made by the Issuer with respect
to the rights and interests of the Purchaser of this Note to the end that the
provisions hereof (including, without limitation, provisions for adjustments of
the Conversion Price and of the number of shares receivable upon the conversion
of this Note) shall thereafter be applicable, in relation to any shares of
stock, securities or assets thereafter deliverable upon the conversion hereof.
The Issuer will not effect any such consolidation, merger or sale unless, prior
to the consummation thereof, the successor corporation (if other than the
Issuer) resulting from such consolidation or merger or the corporation
purchasing such assets shall assume by written instrument reasonably
satisfactory in form and substance to the Purchaser executed and mailed or
delivered to the registered Purchaser hereof at the last address of such
Purchaser appearing on the books of the Issuer, the obligation to deliver to
such Purchaser such shares of stock, securities or assets as, in accordance with
the foregoing provisions, such Purchaser may be entitled to purchase. If there is an Organic Change, then the Issuer shall
cause to be mailed to the Purchaser at its
last address as it shall appear on the books and records of the Issuer, at least
10 calendar days before the effective date of the Organic Change, a notice
stating the date on which such Organic Change is expected to become effective or
close, and the date as of which it is expected that holders of the Common Stock
of record shall be entitled to exchange their shares for securities, cash, or
other property delivered upon such Organic Change; provided, that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Purchaser
is entitled to convert this Note during the 10-day
period commencing on the date of such notice to the effective date of the event
triggering such notice.  In any event, the successor
corporation (if other than the Issuer) resulting from such consolidation or
merger or the corporation purchasing such assets shall be deemed to assume such
obligation to deliver to such Purchaser such shares of stock, securities or
assets even in the absence of a written instrument assuming such obligation to
the extent such assumption occurs by operation of law.

     

    
      
        
        

      

      
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                          (iv)           Adjustment of Conversion
Price Upon Issuance of Additional Shares of Common Stock. In the event
Issuer shall at any time prior to the Maturity Date, while this Note remains
outstanding, issue Additional Shares of Common Stock, as defined below, without
consideration or for a consideration per share less than the Conversion Price in
effect immediately prior to such issue, then the Conversion Price shall be
reduced, concurrently with such issue, to a price (calculated to the nearest
cent) determined by multiplying such Conversion Price by a fraction, (A) the
numerator of which shall be (1) the number of shares of Common Stock outstanding
immediately prior to such issue plus (2) the number of shares of Common Stock
which the aggregate consideration received or to be received by the Company for
the total number of Additional Shares of Common Stock so issued would purchase
at such Conversion Price; and (B) the denominator of which shall be the number
of shares of Common Stock outstanding immediately prior to such issue plus the
number of such Additional Shares of Common Stock so issued; provided that, (i)
for the purpose of this Section 3(a)(iv), all shares of Common Stock issuable
upon conversion or exchange of convertible securities outstanding immediately
prior to such issue shall be deemed to be outstanding, and (ii) the number of
shares of Common Stock deemed issuable upon conversion or exchange of such
outstanding convertible securities shall be determined without giving effect to
any adjustments to the conversion or exchange price or conversion or exchange
rate of such convertible securities resulting from the issuance of Additional
Shares of Common Stock that is the subject of this calculation.  For
purposes of this Warrant, “Additional Shares of Common Stock” shall mean all
shares of Common Stock issued by Issuer after the issuance of this Note
(including without limitation any shares of Common Stock issuable upon
conversion or exchange of any convertible securities or upon exercise of any
option or warrant, on an as-converted basis), other than: (i) shares of Common
Stock issued or issuable upon conversion or exchange of any convertible
securities or exercise of any options or warrants outstanding on the date of
issuance of this Note; (ii) shares of Common Stock issued or issuable by reason
of a dividend, stock split, split-up or other distribution on shares of Common
Stock that is covered by Sections 3(a)(i) through 3(a)(iii) above; (iii) shares
of Common Stock (or options with respect thereto) issued or issuable to
employees or directors of, or consultants to, the Company or any of its
subsidiaries pursuant to a plan, agreement or arrangement approved by the Board
of Directors of the Company; (iv) any securities issued or issuable by the
Company pursuant to the transactions contemplated by the
Memorandum.  The provisions of this Section 3(a)(iv) shall not operate
to increase the Conversion Price.

    

    (b)           Certificate as to
Adjustments. Upon the occurrence of each adjustment or readjustment
pursuant to this Section 3.3, the Issuer at its expense shall promptly compute
such adjustment or readjustment in accordance with the terms hereof and furnish
to each Purchaser of this Note a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Issuer shall promptly furnish or cause to be
furnished to such Purchaser a like certificate setting forth such adjustments
and readjustments and the Conversion Price.

     

    (c)           Certain Events. If
any event occurs as to which the other provisions of this Section 3.3 are not
strictly applicable but the lack of any adjustment would not fairly protect the
conversion rights of the Purchaser under this Note in accordance with the basic
intent and principles of such provisions, or if strictly applicable would not
fairly protect the conversion rights of the Purchaser under this Note in
accordance with the basic intent and principles of such provisions, then the
Issuer's Board of Directors will, in good faith, make an appropriate adjustment
to protect the rights of the Purchaser; provided, that no
such adjustment pursuant to this Section 3.3 will increase the Conversion Price
as otherwise determined pursuant to this Section 3.3.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    4.  Miscellaneous.

     

    4.1           Interest
Rate.  Any interest payable hereunder that is in excess of the
maximum interest rate permitted under applicable law shall be reduced to the
maximum interest rate permitted under such applicable law.

     

    4.2           Notices.  All
notices and other communications hereunder shall be in writing and shall be
deemed to have been given when delivered by hand or by facsimile transmission,
when telexed, or upon receipt when mailed by registered or certified mail
(return receipt requested), postage prepaid, to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice):

     

    If to
Issuer:

    

    AMBER
Ready, Inc.

    101
Roundhill Drive

    Rockaway,
New Jersey 07866

    Attn:  Kai
D. Patterson, CEO

    Facsimile:
(973) 532-0794

    

    With a
copy (which copy shall not constitute notice) to:

    

    Sichenzia
Ross Friedman Ference LLP

    61
Broadway, 32nd
Floor

    New York,
New York 10006

    Attn:  Marc
J. Ross, Esq.

    Facsimile:
(212) 930-9725

    

    If to Purchaser at
its address as furnished in the Subscription Agreement.

    

    4.3           Further
Indebtedness.  With the exception of the Senior Notes, no
indebtedness of the Issuer is senior to this Note in right of payment, whether
with respect to interest, damages or upon liquidation or dissolution or
otherwise.  Without the Purchaser’s consent, the Issuer will not,
directly or indirectly, enter into, create, incur, assume or suffer to exist any
indebtedness of any kind, on or with respect to any of its property or assets
now owned or hereafter acquired or any interest therein or any income or profits
there from that is senior or pari passu in any respect to the obligations of the
Issuer under this Note.

     

    4.4           Entire Agreement; Exercise
of Rights. (a) This Note embodies the entire agreement and understanding
of the parties hereto with respect to the subject matter hereof.  No
amendment of any provision of this Note shall be effective unless it is in
writing and signed by each of the parties; and no waiver of any provision of
this Note, nor consent to any departure by either party from it, shall be
effective unless it is in writing and signed by the affected party, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

     

    (b) No failure on the part of a party
to exercise, and no delay in exercising, any right under this Note, or any
agreement contemplated hereby, shall operate as a waiver hereof by such party,
nor shall any single or partial exercise of any right under this Note, or any
agreement contemplated hereby, preclude any other or further exercise thereof or
the exercise of any other right.

     

    4.5           Governing Law. This
Note shall be governed by and construed in accordance with the laws of the State
of New York applicable to agreements made and to be performed entirely within
such state.

     

    4.6           
Transferability. This
Note shall not be transferable in any manner without the express written consent
of Issuer, which consent may not be unreasonably withheld.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties hereto
have executed this Note on the date first above written.

     

     

    
      
        	 	
                AMBER
      READY, INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	
                Name:
      Kai D. Patterson

                Title:
      Chief Executive Officer

              	 
	 	 	 	 
	 	 	 	 

      

    

     

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

     

    EXHIBIT
“A”

     

     

    NOTICE OF
CONVERSION

     

     

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

     

    

    
      	
              TO:

            	 
      

    

    

    The
undersigned hereby irrevocably elects to convert $ of the principal amount of the above Note, as
well as all accrued but unpaid interest on such converted principal amount as of
the date hereof, into Units of AMBER Ready, Inc. according to the conditions
stated therein, as of the Conversion Date written below.

     

    
      	
              Conversion
      Date:

            	 
      
	 	 
	
              Signature:

            	 
      
	 	 
	
              Name:

            	 
      
	 	 
	
              Address:

            	 
      
	 	 
	
              Principal
      amount to be converted:

            	
              $                                                                                      

            
	 	 
	
              Principal
      amount of Note unconverted:

            	
              $                                                                                      

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

            	 
      
	 	 
	
              Issue
      to:

            	 
      
	 	 
	
              Authorized
      Signature:

            	 
      
	 	 
	
              Name:

            	 
      
	 	 
	
              Title:

            	 
      
	 	 
	
              Phone
      Number:

            	 
      
	 	 
	
              Broker
      DTC Participant Code:

            	 
      
	 	 
	
              Account
      Number:

            	 
      

    

     

    

    

     

     

    12ex403.htm

    Exhibit
4.03

    Warrant
Certificate No. ___

    

    

    NEITHER
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON
THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN
EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE
SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.

     

    
      	Effective Date:
      [   ], 2009	 Void After:
      [   ], 2014

    

    
 

    AMBER
READY, INC.

    

    WARRANT
TO PURCHASE COMMON STOCK

    

    AMBER
Ready, Inc., a Nevada corporation (the “Company”), for value received
on [  ], 2009 (the “Effective Date”), hereby
issues to [          ]
(the “Holder”)
this Warrant (the “Warrant”) to purchase, [        ]
shares (each such share as from time to time adjusted as hereinafter provided
being a “Warrant Share”
and all such shares being the “Warrant Shares”) of the
Company’s Common Stock (as defined below), at the Exercise Price (as defined
below), as adjusted from time to time as provided herein, on or before
[   ], 2014 (the “Expiration Date”), all subject
to the following terms and conditions. Unless otherwise defined in this Warrant,
terms appearing in initial capitalized form shall have the meaning ascribed to
them in that certain Subscription Agreement between the Company and the
purchaser signatory thereto pursuant to which this Warrant was issued (the
“Subscription
Agreement”).

    

    As used
in this Warrant, (i) “Business
Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in the City of New York, New York, are authorized or required
by law or executive order to close; (ii) “Common Stock” means the common
stock of the Company, par value $0.0001 per share, including any securities
issued or issuable with respect thereto or into which or for which such shares
may be exchanged for, or converted into, pursuant to any stock dividend, stock
split, stock combination, recapitalization, reclassification, reorganization or
other similar event; (iii) “Exercise Price” means $1.50
per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading Day” means any day on
which the Common Stock is traded on the primary national or regional stock
exchange on which the Common Stock is listed, or if not so listed, the OTC
Bulletin Board, if quoted thereon, is
open for the transaction of business; and (v) “Affiliate” means any person
that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, a person, as such terms are used
and construed in Rule 144 promulgated under the Securities Act of 1933, as
amended (the “Securities
Act”).

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    
      	
              1.

            	
              DURATION
      AND EXERCISE OF WARRANTS

            

    

     

    
      	
              (a)         
       

            	
              Exercise
      Period.  The Holder may exercise this Warrant in whole or
      in part on any Business Day on or before 5:00 P.M., Eastern Time, on the
      Expiration Date, at which time this Warrant shall become void and of no
      value.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Exercise
      Procedures.

            

    

    

    (i)           While
this Warrant remains outstanding and exercisable in accordance with Section
1(a), in addition to the manner set forth in Section 1(b)(ii) below, the Holder
may exercise this Warrant in whole or in part at any time and from time to time
by:

    

    (A)           delivery
to the Company of a duly executed copy of the Notice of Exercise attached as
Exhibit A;

    

    (B)           surrender
of this Warrant to the Secretary of the Company at its principal offices or at
such other office or agency as the Company may specify in writing to the Holder;
and

    

    (C)           payment
of the then-applicable Exercise Price per share multiplied by the number of
Warrant Shares being purchased upon exercise of the Warrant (such amount, the
“Aggregate Exercise
Price”) made in the form of cash, or by certified check, bank draft or
money order payable in lawful money of the United States of America or in the
form of a Cashless Exercise to the extent permitted in Section 1(b)(ii)
below.

    

    (ii)           At
any time when a registration statement required by that certain Registration
Rights Agreement among the Company, the Holder and the other Holders of Warrants
covering the resale of, among other securities, the Warrant Shares by the Holder
is not available after 150 days after the end of the Offering Period, the Holder
may, in its sole discretion, exercise all or any part of the Warrant in a
“cashless” or “net-issue” exercise (a “Cashless Exercise”) by
delivering to the Company (1) the Notice of Exercise and (2) the original
Warrant, pursuant to which the Holder shall surrender the right to receive upon
exercise of this Warrant, a number of Warrant Shares having a value (as
determined below) equal to the Aggregate Exercise Price, in which case, the
number of Warrant Shares to be issued to the Holder upon such exercise shall be
calculated using the following formula:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

                                             X              =              Y * (A -
B)

                                                                                    
A

                    

    
      	
               
      

            	 with: 	
              X =

            	the number of Warrant Shares to be issued to the
Holder

    

     

    
      	
               
      

            	 	
              Y
      =

            	
              the
      number of Warrant Shares with respect to which the Warrant is being
      exercised

            

    

    

    
      	
               
      

            	 	
              A
      =

            	
              the
      fair value per share of Common Stock on the date of exercise of this
      Warrant

            

    

     

    
      	
               
      

            	 	
              B
      =

            	the then-current Exercise Price of the
Warrant

    Solely
for the purposes of this paragraph, “fair value” per share of Common Stock shall
mean (A) the average of the closing sales prices, as quoted on the primary
national or regional stock exchange on which the Common Stock is listed, or, if
not listed, the OTC Bulletin Board if quoted thereon, on the twenty (20) trading
days immediately preceding the date on which the Notice of Exercise is deemed to
have been sent to the Company, or (B) if the Common Stock is not publicly traded
as set forth above, as reasonably and in good faith determined by the Board of
Directors of the Company as of the date which the Notice of Exercise is deemed
to have been sent to the Company.

    

    Notwithstanding
the foregoing provisions of this Section 1(b)(ii), the Holder may not make a
Cashless Exercise if and to the extent that such exercise would require the
Company to issue a number of shares of Common Stock in excess of its authorized
but unissued shares of Common Stock, less all amounts of Common Stock that have
been reserved for issue upon the conversion of all outstanding securities
convertible into shares of Common Stock and the exercise of all outstanding
options, warrants and other rights exercisable for shares of Common
Stock.  If the Company does not have the requisite number of
authorized but unissued shares of Common Stock to permit the Holder to make a
Cashless Exercise, the Company shall use commercially reasonable efforts to
obtain the necessary stockholder consent to increase the authorized number of
shares of Common Stock to permit such Holder to make a Cashless Exercise
pursuant to this Section 1(b)(ii).

    

    (iii)           Upon
the exercise of this Warrant in compliance with the provisions of this Section
1(b), and except as limited pursuant to the last paragraph of Section 1(b)(ii),
the Company shall promptly issue and cause to be delivered to the Holder a
certificate for the Warrant Shares purchased by the Holder.  Each
exercise of this Warrant shall be effective immediately prior to the close of
business on the date (the “Date
of Exercise”) that the conditions set forth in Section 1(b) have been
satisfied, as the case may be.  On the first Business Day following
the date on which the Company has received each of the Notice of Exercise and
the Aggregate Exercise Price (or notice of a Cashless Exercise in accordance
with Section 1(b)(ii)) (the “Exercise Delivery Documents”),
the Company shall transmit an acknowledgment of receipt of the Exercise Delivery
Documents to the Company’s transfer agent (the “Transfer Agent”). On or before
the third Business Day following the date on which the Company has received all
of the Exercise Delivery Documents (the “Share Delivery Date”), the
Company shall (X) provided that the Transfer Agent is participating in The
Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program, upon the request of the Holder, credit such
aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with
DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the
Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, issue and dispatch by overnight courier to the address as
specified in the Notice of Exercise, a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of
shares of Common Stock to which the Holder is entitled pursuant to such
exercise.  Upon delivery of the Exercise Delivery Documents, the
Holder shall be deemed for all corporate purposes to have become the holder of
record of the Warrant Shares with respect to which this Warrant has been
exercised, irrespective of the date of delivery of the certificates evidencing
such Warrant Shares. If this Warrant is submitted in connection with any
exercise pursuant to Section 1(a) and the number of Warrant Shares represented
by this Warrant submitted for exercise is greater than the actual number of
Warrant Shares being acquired upon such an exercise, then the
Company shall as soon as practicable and in no event later than five (5)
Business Days after any exercise and at its own expense, issue a new Warrant of
like tenor representing the right to purchase the number of Warrant Shares
purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which this Warrant is
exercised.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    (iv)           If
the Company shall fail for any reason or for no reason to issue to the Holder,
within five (5) Business Days of receipt of the Exercise Delivery Documents, a
certificate for the number of shares of Common Stock to which the Holder is
entitled and register such shares of Common Stock on the Company’s share
register or to credit the Holder’s balance account with DTC for such number of
shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise of this Warrant, and if on or after such Business Day the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of shares of Common Stock
issuable upon such exercise that the Holder anticipated receiving from the
Company (a “Buy-In”),
then the Company shall, within five (5) Business Days after the Holder’s request
and in the Holder’s discretion, either (i) pay cash to the Holder in an amount
equal to the Holder’s total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point
the Company’s obligation to deliver such certificate (and to issue such shares
of Common Stock) shall terminate, or (ii) promptly honor its obligation to
deliver to the Holder a certificate or certificates representing such shares of
Common Stock and pay cash to the Holder in an amount equal to the excess (if
any) of the Buy-In Price over the product of (A) such number of shares of Common
Stock, times (B) the closing bid price on the date of exercise.

    

    (c)           Partial
Exercise.  This Warrant shall be exercisable, either in its
entirety or, from time to time, for part only of the number of Warrant Shares
referenced by this Warrant. If this Warrant is exercised in part, the Company
shall issue, at its expense, a new Warrant, in substantially the form of this
Warrant, referencing such reduced number of Warrant Shares that remain subject
to this Warrant.

    

    (d)           Disputes.  In
the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue
to the Holder the number of Warrant Shares that are not disputed and resolve
such dispute in accordance with Section 15.

    

    
      	
              2.

            	
              ISSUANCE
      OF WARRANT SHARES

            

    

    

    (a)           The
Company covenants that all Warrant Shares will, upon issuance in accordance with
the terms of this Warrant, be (i) duly authorized, fully paid and
non-assessable, and (ii) free from all liens, charges and security interests,
with the exception of claims arising through the acts or omissions of any Holder
and except as arising from applicable Federal and state securities
laws.

    

    (b)           The
Company shall register this Warrant upon records to be maintained by the Company
for that purpose in the name of the record holder of such Warrant from time to
time. The Company may deem and treat the registered Holder of this Warrant as
the absolute owner thereof for the purpose of any exercise thereof, any
distribution to the Holder thereof and for all other purposes.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c)           The
Company will not, by amendment of its certificate of formation, by-laws or
through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms to be observed
or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all action necessary or appropriate in order to protect the rights of
the Holder to exercise this Warrant, or against impairment of such
rights.

    

    
      	
              3.

            	
              ADJUSTMENTS
      OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT
  SHARES

            

    

    

    (a)           The
Exercise Price and the number of shares purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the occurrence of
certain events described in this Section 3(a); provided, that
notwithstanding the provisions of this Section 3, the Company shall not be
required to make any adjustment if and to the extent that such adjustment would
require the Company to issue a number of shares of Common Stock in excess of its
authorized but unissued shares of Common Stock, less all amounts of Common Stock
that have been reserved for issue upon the conversion of all outstanding
securities convertible into shares of Common Stock and the exercise of all
outstanding options, warrants and other rights exercisable for shares of Common
Stock.  If the Company does not have the requisite number of
authorized but unissued shares of Common Stock to make any adjustment, the
Company shall use its commercially best efforts to obtain the necessary
stockholder consent to increase the authorized number of shares of Common Stock
to make such an adjustment pursuant to this Section 3(a).

    

    (i)           Subdivision or Combination
of Stock. In case the Company shall at any time subdivide (whether by way
of stock dividend, stock split or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Exercise Price in effect immediately
prior to such subdivision shall be proportionately reduced and the number of
Warrant Shares shall be proportionately increased, and conversely, in case the
outstanding shares of Common Stock of the Company shall be combined (whether by
way of stock combination, reverse stock split or otherwise) into a smaller
number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased and the number of Warrant Shares
shall be proportionately decreased.  The Exercise Price and the
Warrant Shares, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described in this Section
3(a)(i).

    

    (ii)           Dividends in Stock,
Property, Reclassification. If at any time, or from time to time, all of
the holders of Common Stock (or any shares of stock or other securities at the
time receivable upon the exercise of this Warrant) shall have received or become
entitled to receive, without payment therefore:

    

    (A)           any
shares of stock or other securities that are at any time directly or indirectly
convertible into or exchangeable for Common Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution, or

    

    (B)           additional
stock or other securities or property (including cash) by way of spin-off,
split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock issued as a stock split or
adjustments in respect of which shall be covered by the terms of Section 3(a)(i)
above),

    

    then and
in each such case, the Exercise Price and the number of Warrant Shares to be
obtained upon exercise of this Warrant shall be adjusted proportionately, and
the Holder hereof shall, upon the exercise of this Warrant, be entitled to
receive, in addition to the number of shares of Common Stock receivable
thereupon, and without payment of any additional consideration therefor, the
amount of stock and other securities and property (including cash in the cases
referred to above) that such Holder would hold on the date of such exercise had
such Holder been the holder of record of such Common Stock as of the date on
which holders of Common Stock received or became entitled to receive such shares
or all other additional stock and other securities and property.  The
Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted in
the same manner upon the happening of any successive event or events described
in this Section 3(a)(ii).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    (iii)           Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization,
reclassification or reorganization of the capital stock of the Company, or any
consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets or other transaction shall be effected in
such a way that holders of Common Stock shall be entitled to receive stock,
securities, or other assets or property (an “Organic Change”), then, as a
condition of such Organic Change, lawful and adequate provisions shall be made
by the Company whereby the Holder hereof shall thereafter have the right to
purchase and receive (in lieu of the shares of the Common Stock of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented by this Warrant) such shares of stock, securities or other
assets or property as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such Common Stock equal to the number of
shares of such stock immediately theretofore purchasable and receivable assuming
the full exercise of the rights represented by this Warrant. In the event of any
Organic Change, appropriate provision shall be made by the Company with respect
to the rights and interests of the Holder of this Warrant to the end that the
provisions hereof (including, without limitation, provisions for adjustments of
the Exercise Price and of the number of shares purchasable and receivable upon
the exercise of this Warrant) shall thereafter be applicable, in relation to any
shares of stock, securities or assets thereafter deliverable upon the exercise
hereof. The Company will not effect any such consolidation, merger or sale
unless, prior to the consummation thereof, the successor corporation (if other
than the Company) resulting from such consolidation or merger or the corporation
purchasing such assets shall assume by written instrument reasonably
satisfactory in form and substance to the Holder executed and mailed or
delivered to the registered Holder hereof at the last address of such Holder
appearing on the books of the Company, the obligation to deliver to such Holder
such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase. If there is an Organic Change, then the Company shall
cause to be mailed to the Holder at its last address as it shall appear on the
books and records of the Company, at least 10 calendar days before the effective
date of the Organic Change, a notice stating the date on which such Organic
Change is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares for securities, cash, or other property delivered upon
such Organic Change; provided, that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Holder is
entitled to exercise this Warrant during the 10-day period commencing on the
date of such notice to the effective date of the event triggering such
notice.  In any event, the successor corporation (if other than
the Company) resulting from such consolidation or merger or the corporation
purchasing such assets shall be deemed to assume such obligation to deliver to
such Holder such shares of stock, securities or assets even in the absence of a
written instrument assuming such obligation to the extent such assumption occurs
by operation of law.

    

    (b)           Certificate as to
Adjustments. Upon the occurrence of each adjustment or readjustment
pursuant to this Section 3, the Company at its expense shall promptly compute
such adjustment or readjustment in accordance with the terms hereof and furnish
to each Holder of this Warrant a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall promptly furnish or cause to be
furnished to such Holder a like certificate setting forth: (i) such adjustments
and readjustments; and (ii) the number of shares and the amount, if any, of
other property which at the time would be received upon the exercise of the
Warrant.

    

    (c)           Certain Events. If
any event occurs as to which the other provisions of this Section 3 are not
strictly applicable but the lack of any adjustment would not fairly protect the
purchase rights of the Holder under this Warrant in accordance with the basic
intent and principles of such provisions, or if strictly applicable would not
fairly protect the purchase rights of the Holder under this Warrant in
accordance with the basic intent and principles of such provisions, then the
Company's Board of Directors will, in good faith, make an appropriate adjustment
to protect the rights of the Holder; provided, that no
such adjustment pursuant to this Section 3(c) will increase the Exercise Price
or decrease the number of Warrant Shares as otherwise determined pursuant to
this Section 3.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
 

    (d)           Adjustment of Exercise Price
Upon Issuance of Additional Shares of Common Stock.  In the
event the Company shall at any time prior to the Expiration Date issue
Additional Shares of Common Stock, as defined below, without consideration or
for a consideration per share less than the Exercise Price in effect immediately
prior to such issue, then the Exercise Price shall be reduced, concurrently with
such issue, to a price (calculated to the nearest cent) determined by
multiplying such Exercise Price by a fraction, (A) the numerator of which shall
be (1) the number of shares of Common Stock outstanding immediately prior to
such issue plus (2) the number of shares of Common Stock which the aggregate
consideration received or to be received by the Company for the total number of
Additional Shares of Common Stock so issued would purchase at such Exercise
Price; and (B) the denominator of which shall be the number of shares of Common
Stock outstanding immediately prior to such issue plus the number of such
Additional Shares of Common Stock so issued; provided that, (i)
for the purpose of this Section 3(d), all shares of Common Stock issuable upon
conversion or exchange of convertible securities outstanding immediately prior
to such issue shall be deemed to be outstanding, and (ii) the number of shares
of Common Stock deemed issuable upon conversion or exchange of such outstanding
convertible securities shall be determined without giving effect to any
adjustments to the conversion or exchange price or conversion or exchange rate
of such convertible securities resulting from the issuance of Additional Shares
of Common Stock that is the subject of this calculation.  For purposes
of this Warrant, “Additional Shares of Common Stock” shall mean all shares of
Common Stock issued by the Company after the Effective Date (including without
limitation any shares of Common Stock issuable upon conversion or exchange of
any convertible securities or upon exercise of any option or warrant, on an
as-converted basis), other than: (i) shares of Common Stock issued or
issuable upon conversion or exchange of any convertible securities or exercise
of any options or warrants outstanding on the Effective Date; (ii) shares
of Common Stock issued or issuable by reason of a dividend, stock split,
split-up or other distribution on shares of Common Stock that is covered by
Sections 3(a)(i) through 3(a)(iii) above; (iii) shares of Common Stock (or
options with respect thereto) issued or issuable to employees or directors of,
or consultants to, the Company or any of its subsidiaries pursuant to a plan,
agreement or arrangement approved by the Board of Directors of the Company; (iv)
any securities issued or issuable by the Company pursuant to the Subscription
Agreement; (v) securities issued pursuant to acquisitions or strategic
transactions approved by a majority of disinterested directors of the Company,
provided that any such issuance shall only be to a person which is, itself or
through its subsidiaries, an operating Company in a business synergistic with
the business of the Company and in which the Company receives benefits in
addition to the investment of funds, but shall not include a transaction in
which the Company is issuing securities primarily for the purpose of raising
capital or to an entity whose primary business is investing in securities; and
(vi) any securities issued or issuable by the Company pursuant to the
transactions contemplated by that certain Confidential Private Placement
Memorandum of the Company, dated _______, 2009.  The provisions of
this Section 3(d) shall not operate to increase the Exercise Price.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
              4.

            	
              TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT
SHARES

            

    

    

    (a)           Registration of Transfers
and Exchanges. Subject to Section 4(c), upon the Holder’s surrender of
this Warrant, with a duly executed copy of the Form of Assignment attached as
Exhibit B, to the
Secretary of the Company at its principal offices or at such other office or
agency as the Company may specify in writing to the Holder, the Company shall
register the transfer of all or any portion of this Warrant. Upon such
registration of transfer, the Company shall issue a new Warrant, in
substantially the form of this Warrant, evidencing the acquisition rights
transferred to the transferee and a new Warrant, in similar form, evidencing the
remaining acquisition rights not transferred, to the Holder requesting the
transfer.

    

    (b)           Warrant Exchangeable for
Different Denominations. The Holder may exchange this Warrant for a new
Warrant or Warrants, in substantially the form of this Warrant, evidencing in
the aggregate the right to purchase the number of Warrant Shares which may then
be purchased hereunder, each of such new Warrants to be dated the date of such
exchange and to represent the right to purchase such number of Warrant Shares as
shall be designated by the Holder. The Holder shall surrender this Warrant with
duly executed instructions regarding such re-certification of this Warrant to
the Secretary of the Company at its principal offices or at such other office or
agency as the Company may specify in writing to the Holder.

    

    (c)           Restrictions on
Transfers. This Warrant may not be transferred at any time without (i)
registration under the Securities Act or (ii) an exemption from such
registration and a written opinion of legal counsel addressed to the Company
that the proposed transfer of the Warrant may be effected without registration
under the Securities Act, which opinion will be in form and from counsel
reasonably satisfactory to the Company.

    

    (d)           Permitted Transfers and
Assignments.  Notwithstanding any provision to the contrary in
this Section 4, the Holder may transfer, with or without consideration, this
Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s
Affiliates (as such term is defined under Rule 144 of the Securities Act)
without obtaining the opinion from counsel that may be required by Section
4(c)(ii), provided, that the
Holder delivers to the Company and its counsel certification, documentation, and
other assurances reasonably required by the Company’s counsel to enable the
Company’s counsel to render an opinion to the Company’s Transfer Agent that such
transfer does not violate applicable securities laws.

    

    
      	
              5.

            	
              MUTILATED
      OR MISSING WARRANT CERTIFICATE

            

    

    

               If
this Warrant is mutilated, lost, stolen or destroyed, upon request by the
Holder, the Company will, at its expense, issue, in exchange for and upon
cancellation of the mutilated Warrant, or in substitution for the lost, stolen
or destroyed Warrant, a new Warrant, in substantially the form of this Warrant,
representing the right to acquire the equivalent number of Warrant Shares; provided, that, as a
prerequisite to the issuance of a substitute Warrant, the Company may require
satisfactory evidence of loss, theft or destruction as well as an indemnity from
the Holder of a lost, stolen or destroyed Warrant.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    
      	
              6.

            	
              PAYMENT
      OF TAXES

            

    

    

    The
Company will pay all transfer and stock issuance taxes attributable to the
preparation, issuance and delivery of this Warrant and the Warrant Shares (and
replacement Warrants) including, without limitation, all documentary and stamp
taxes; provided, however, that the
Company shall not be required to pay any tax in respect of the transfer of this
Warrant, or the issuance or delivery of certificates for Warrant Shares or other
securities in respect of the Warrant Shares to any person or entity other than
to the Holder.

    

    7.           FRACTIONAL
WARRANT SHARES

    

    No
fractional Warrant Shares shall be issued upon exercise of this Warrant. The
Company, in lieu of issuing any fractional Warrant Share, shall round up the
number of Warrant Shares issuable to nearest whole share.

    

    
      	
              8.

            	
              NO
      STOCK RIGHTS AND LEGEND

            

    

    

    No holder
of this Warrant, as such, shall be entitled to vote or be deemed the holder of
any other securities of the Company that may at any time be issuable on the
exercise hereof, nor shall anything contained herein be construed to confer upon
the holder of this Warrant, as such, the rights of a stockholder of the Company
or the right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or give or withhold consent to any
corporate action or to receive notice of meetings or other actions affecting
stockholders (except as provided herein), or to receive dividends or
subscription rights or otherwise (except as provide herein).

    

               Each
certificate for Warrant Shares initially issued upon the exercise of this
Warrant, and each certificate for Warrant Shares issued to any subsequent
transferee of any such certificate, shall be stamped or otherwise imprinted with
a legend in substantially the following form:

    

               “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS,
AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
WITH  RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER
CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR   APPLICABLE STATE SECURITIES LAWS.”

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
              9.

            	
              REGISTRATION
      UNDER THE SECURITIES ACT OF 1933

            

    

    

    The Company agrees to provide
registration rights for the resale of the Warrant Shares under the Securities
Act on the terms and subject to the conditions set forth in the Registration
Rights Agreement between the Company and each investor party to the Subscription Agreement, pursuant to
which this Warrant was issued.

    

    10.           NOTICES

    

               All
notices, consents, waivers, and other communications under this Warrant must be
in writing and will be deemed given to a party when (a) delivered to the
appropriate address by hand or by nationally recognized overnight courier
service (costs prepaid); (b) sent by facsimile or e-mail with confirmation of
transmission by the transmitting equipment; (c) received or rejected by the
addressee, if sent by certified mail, return receipt requested, if to the
registered Holder hereof; or (d) seven days after the placement of the notice
into the mails (first class postage prepaid), to the Holder at the address,
facsimile number, or e-mail address furnished by the registered Holder to the
Company in accordance with the Subscription Agreement by and between the Company
and the Holder, or if to the Company, to it at AMBER Ready, Inc., 101 Roundhill Drive, Rockaway, New
Jersey 07866, Attention: Kai Patterson, Chief Executive Officer (or to
such other address, facsimile number, or e-mail address as the Holder or the
Company as a party may designate by notice the other party) with a copy to
Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd
Floor, New York, New York 10006, Attention: Marc J. Ross, Esq.

    

    
      	
              11.

            	
              SEVERABILITY

            

    

    

    If a
court of competent jurisdiction holds any provision of this Warrant invalid or
unenforceable, the other provisions of this Warrant will remain in full force
and effect. Any provision of this Warrant held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held
invalid or unenforceable.

    

    
      	
              12.

            	
              BINDING
      EFFECT

            

    

    

    This
Warrant shall be binding upon and inure to the sole and exclusive benefit of the
Company, its successors and assigns, the registered Holder or Holders from time
to time of this Warrant and the Warrant Shares.

    

    
      	
              13.

            	
              SURVIVAL
      OF RIGHTS AND DUTIES

            

    

    

    This
Warrant shall terminate and be of no further force and effect on the earlier of
5:00 P.M., Eastern Time, on the Expiration Date or the date on which this
Warrant has been exercised in full.

    

    
      	
              14.

            	
              GOVERNING
      LAW

            

    

    

    This
Warrant will be governed by and construed under the laws of the State of New
York without regard to conflicts of laws principles that would require the
application of any other law.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    
      	
              15.

            	
              DISPUTE
      RESOLUTION

            

    

    

    In the
case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within two
Business Days of receipt of the Notice of Exercise giving rise to such dispute,
as the case may be, to the Holder. If the Holder and the Company are unable to
agree upon such determination or calculation of the Exercise Price or the
Warrant Shares within three Business Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Company shall,
within two Business Days, submit via facsimile (a) the disputed determination of
the Exercise Price to an independent, reputable investment bank selected by the
Company and approved by the Holder or (b) the disputed arithmetic calculation of
the Warrant Shares to the Company’s independent, outside accountant. The Company
shall cause the investment bank or the accountant, as the case may be, to
perform the determinations or calculations and notify the Company and the Holder
of the results no later than ten (10) Business Days from the time it receives
the disputed determinations or calculations. Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding
upon all parties absent demonstrable error. The party whose proposed Exercise
Price is furthest from the Exercise Price determined by the investment bank or
accountant shall be responsible for the fees and expenses of the investment bank
or accountant.

    

    
      	
              16.

            	
              NOTICES
      OF RECORD DATE

            

    

    

    Upon (a)
any establishment by the Company of a record date of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend or other distribution, or right or option to acquire
securities of the Company, or any other right, or (b) any capital
reorganization, reclassification, recapitalization, merger or consolidation of
the Company with or into any other corporation, any transfer of all or
substantially all the assets of the Company, or any voluntary or involuntary
dissolution, liquidation or winding up of the Company, or the sale, in a single
transaction, of a majority of the Company’s voting stock (whether newly issued,
or from treasury, or previously issued and then outstanding, or any combination
thereof), the Company shall mail to the Holder at least ten (10) Business Days,
or such longer period as may be required by law, prior to the record date
specified therein, a notice specifying (i) the date established as the record
date for the purpose of such dividend, distribution, option or right and a
description of such dividend, option or right, (ii) the date on which any such
reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding up, or sale is expected to become effective and (iii) the
date, if any, fixed as to when the holders of record of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, transfer,
consolation, merger, dissolution, liquidation or winding up.

    

    
      	
              17.

            	
              RESERVATION
      OF SHARES

            

    

    

    The
Company shall reserve and keep available out of its authorized but unissued
shares of Common Stock for issuance upon the exercise of this Warrant, free from
pre-emptive rights, such number of shares of Common Stock for which this Warrant
shall from time to time be exercisable.  The Company will take all
such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or
regulation. Without limiting the generality of the foregoing, the Company
covenants that it will use commercially reasonable efforts to take all such
action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable Warrant Shares upon the exercise
of this Warrant and use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents, including but not limited to consents
from the Company’s stockholders or Board of Directors or any public regulatory
body, as may be necessary to enable the Company to perform its obligations under
this Warrant.

     

    
      	
              18.

            	
              NO
      THIRD PARTY RIGHTS

            

    

    

    This
Warrant is not intended, and will not be construed, to create any rights in any
parties other than the Company and the Holder, and no person or entity may
assert any rights as third-party beneficiary hereunder.

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

                  IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of
the date first set forth above.

     

    
      
        	 	AMBER READY, INC.	 
	 	 	 	 
	
              	
                By:
      

              	/s/ 	 
	 	 	Name: 
      Kai D. Patterson 

                Title: Chief
      Executive Officer

              	 
	 	 	 	 
	 	 	 	 

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    NOTICE OF
EXERCISE

    

    (To be
executed by the Holder of Warrant if such Holder desires to exercise
Warrant)

    

    To AMBER
Ready, Inc.:

    

    The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase
thereunder, ___________________ full shares of AMBER Ready, Inc. common stock
issuable upon exercise of the Warrant and delivery of:

    

    (1)                 $_________
(in cash as provided for in the foregoing Warrant) and any applicable taxes
payable by the undersigned pursuant to such Warrant; and

    

    (2)                 __________
shares of Common Stock (pursuant to a Cashless Exercise in accordance with
Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to
deliver an unspecified number of shares equal the number sufficient to effect a
Cashless Exercise [___]).

    

        The
undersigned requests that certificates for such shares be issued in the name
of:

    

    _________________________________________

    (Please
print name, address and social security or federal employer

    identification
number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

                  If
the shares issuable upon this exercise of the Warrant are not all of the Warrant
Shares which the Holder is entitled to acquire upon the exercise of the Warrant,
the undersigned requests that a new Warrant evidencing the rights not so
exercised be issued in the name of and delivered to:

    

    _________________________________________

    (Please
print name, address and social security or federal employer

    identification
number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

     
 

                                                           Name
of Holder
(print):       ________________________

                                                           (Signature):   ___________________________________

                                                           (By:)  _________________________________________

                                                           (Title:)
________________________________________

                                                           Dated:   _______________________________________

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    EXHIBIT
B

    

    FORM OF
ASSIGNMENT

    

    FOR VALUE
RECEIVED, ___________________________________ hereby sells, assigns and
transfers to each assignee set forth below all of the rights of the undersigned
under the Warrant (as defined in and evidenced by the attached Warrant) to
acquire the number of Warrant Shares set opposite the name of such assignee
below and in and to the foregoing Warrant with respect to said acquisition
rights and the shares issuable upon exercise of the Warrant:

    

     
 

    
      	
              Name
      of Assignee

            	
              Address

            	
              Number
      of Shares

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    

    If the
total of the Warrant Shares are not all of the Warrant Shares evidenced by the
foregoing Warrant, the undersigned requests that a new Warrant evidencing the
right to acquire the Warrant Shares not so assigned be issued in the name of and
delivered to the undersigned.

    

    

                                                           Name
of Holder
(print):       ________________________

                                                           (Signature):   ___________________________________

                                                           (By:)  _________________________________________

                                                           (Title:)
________________________________________

                                                           Dated:   _______________________________________

     

     

     

     

     

    14

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