Document:

ex10-12.htm

Exhibit 10.12

 

SUBSCRIPTION AGREEMENT AND INVESTOR QUESTIONNAIRE

 

This SUBSCRIPTION AGREEMENT (the “Agreement”) is entered into this 30th day of April 2010, by and between Firebird Ventures, LLC, a Delaware limited liability company, with a principal business address at 247 West 30th Street, Floor 11, New York, New York 10001 (the “Company”), and the undersigned subscribing investor (the “Subscriber”).

 

RECITALS

 

The Company wishes to sell to Subscriber and Subscriber wishes to purchase, upon the terms and subject to the conditions set forth herein, Class A Units (the “Units”) representing membership interests in the Company, as described in detail in the Company’s Operating Agreement (as hereinafter defined).

 

NOW THEREFORE, in consideration of the terms and conditions set forth below, the parties hereto agree as follows:

 

1.           Purchase of Units.  Subscriber hereby subscribes to purchase the number of Units as indicated on the Subscriber’s signature page attached hereto at the purchase price for the Units (the “Purchase Price”) set forth thereon.  The Purchase Price shall be due and payable on the date hereof.  The failure of the Subscriber to pay the entire Purchase Price as and when due shall result in the forfeiture of the Units as described in the Operating Agreement.  Payment of the Purchase Price for the Units must be paid by check or wire transfer to the Company in accordance with the instructions on the Payment Instructions page attached hereto.  The Subscriber agrees to purchase the Units on the date hereof upon acceptance by the Company.  Upon the purchase, the Subscriber will receive the number of Units purchased and the Subscriber’s Operating Agreement Signature Page, enclosed herewith, shall become part of the Operating Agreement.  Subject to the review by the Company of the Investor Questionnaire attached hereto (the “Questionnaire”) and final acceptance of the Purchase Price, the Company shall issue and deliver to the Subscriber the Units.  The Subscriber’s purchase of Units is subject to the Company’s Operating Agreement of even date herewith (“Operating Agreement”).  The Subscriber acknowledges that the Units are uncertificated.

 

2.           Representations of Subscriber.  The offering and sale of the Units is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Act”), by virtue of Section 3(b) of the Act and the provisions of Regulation D promulgated thereunder. In furtherance thereof and as a material inducement to the Company to enter into this Agreement and to close the transactions contemplated hereby, the Subscriber hereby represents and warrants to the Company as follows (the Subscriber must initial each of the spaces provided):

 

(a)           Accredited Investor.  Subscriber qualifies as an “accredited investor” (as defined under Regulation D as promulgated and amended by the Securities and Exchange Commission pursuant to the Act) on the basis of the representations made by Subscriber in the Investor Questionnaire, which representations shall be deemed incorporated herein by this reference.

  

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(b)           Financial and Business Experience.  Subscriber is knowledgeable and experienced in financial and business matters and is capable of evaluating the merits and risks of an investment in the Units and has the capacity to protect its, his or her own interests in connection with the purchase of the Units, either alone or in conjunction with its, his or her professional advisors, who are unaffiliated with and who are not compensated, directly or indirectly, by the Company or any affiliate of the Company.  All information which Subscriber has provided to the Company concerning itself and its financial position is correct and complete.  Subscriber can bear the economic risk of his investment in the Company (including the possible loss of the entire investment).

 

(c)           Access to Information.  The Subscriber has received the Operating Agreement which describes certain material information concerning the Company. Subscriber hereby acknowledges that the Company has made available to Subscriber prior to any purchase of the Units all information reasonably necessary to enable the Subscriber to evaluate the risks and merits of an investment in the Company.  Subscriber is aware of the highly speculative nature of any investment in the Company, and the significant risks involved therein.

 

(d)           Purchase for Own Account.  The Units which are being acquired for Subscriber’s own account (or a trust account if the Subscriber is a trustee) for investment only and not with a view to sale or resale, distribution, or fractionalization of the Units under applicable federal or state securities laws (collectively, the “Securities Laws”). Subscriber was not organized for the specific purpose of acquiring the Units. Subscriber will not resell or offer to resell the Units, or any portion thereof, except in accordance with the terms hereof and of the Operating Agreement and in compliance with all applicable Securities Laws.  Furthermore, prior to any resale of the Units, or any portion thereof, by Subscriber, Subscriber shall provide the Company with an opinion of counsel to Subscriber, in a form acceptable to counsel to the Company in its sole discretion, that any such proposed sale is in compliance with the Act, or an exemption therefrom.

 

(e)           Restricted Securities.  Subscriber understands that the Units have not been registered pursuant to the provisions of the Securities Laws and that the purchase of the Units is taking place in a transaction not involving any public offering. Subscriber understands that he has no rights whatsoever to request, and that the Company is under no obligation whatsoever to register, the Units under any or all of the Securities Laws.

 

(f)           Operating Agreement.  Subscriber has carefully read and reviewed the Operating Agreement.  The Subscriber has asked all questions regarding these documents to the Company’s representatives, Stephen G. Sullivan, Sr. and Jarret Prussin.

 

(g)           Accuracy of Disclosures.  All of the information supplied by Subscriber to Company in connection with the purchase of the Units, and the representations of Subscriber contained in this Agreement, are true and complete, and do not contain any statement which, at the time and in light of the circumstances under which it is made, is false or misleading with respect to any material fact, and shall not omit to any material fact required to be stated in order to make the statements made not false or misleading.

 

  

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(h)           Investor Questionnaire.  The Company may only accept subscriptions from persons who meet certain suitability standards.  In furnishing the information set forth in the Questionnaire, Subscriber hereby acknowledges that the Company will be relying thereon in determining, among other things, whether there are reasonable grounds to believe that Subscriber qualifies as a purchaser under Regulation D promulgated thereunder. The statements and information set forth on the Investor Questionnaire are true, correct and complete in all respects.

 

(i)           Validity, Binding Effect.  Subscriber has the full power and authority to execute and deliver this Agreement and to perform in all material respects its obligations under this Agreement.  Subscriber has taken all action required by law to authorize the execution and delivery of this Agreement and all transactions contemplated hereunder.  This Agreement is a valid and binding agreement of Subscriber enforceable in accordance with its terms.  The execution and delivery of this Agreement and the performance of all transactions contemplated hereunder do not conflict with or constitute a default under any instruments governing Subscriber, any law, regulation or order, or any agreement to which Subscriber is a party or to which Subscriber is bound.

 

(j)           Certain Information. Subscriber has been furnished certain information and any documents which have been made available upon request, and has carefully read and understands the information contained in such documents.

 

3.           Subscriber Acknowledgements.  Subscriber acknowledges that he has been advised of the following with respect to the Company:

 

(a)          Organization.  A copy of the Operating Agreement has been provided to Subscriber and a copy of the Company’s Certificate of Formation is available upon request.

 

(b)           General Risk Factors.  Subscriber understands that the various risks ordinarily attendant upon investments in entities generally makes an investment in the Company subject to a particularly high degree of risk.  SUBSCRIBER HAS BEEN CAUTIONED THAT AN INVESTMENT IN THE UNITS IS HIGHLY SPECULATIVE AND INVOLVES SIGNIFICANT RISKS INCLUDING THE RISK OF LOSS OF THE ENTIRE INVESTMENT AND, THAT IT IS NOT POSSIBLE TO FORESEE AND DESCRIBE ALL OF THE BUSINESS, ECONOMIC AND FINANCIAL RISK FACTORS WHICH MAY AFFECT THE COMPANY.

 

4.           Indemnification.  The Subscriber acknowledges that it understands the meaning and legal consequences of the representations, warranties, and agreements contained herein, that the Company is relying on the accuracy of the representations, warranties, and agreements by the Subscriber as contained herein, and that it would not be permitted to purchase any Units if any representation or warranty were known to be false.  Accordingly, the undersigned hereby agrees to indemnify and hold harmless the Company and its Members from and against any and all loss, damage, liability, cost, or expense due to or arising out of a breach of any representation, warranty, or agreement of the undersigned contained in this Subscription Agreement.

 

  

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5.           Subscriber’s Access to Information.  The Company will answer all inquiries from Subscriber (and Subscriber’s investment advisors and purchaser representatives) concerning the Company and any other matters relating to the proposed operations of the Company and the offering and sale of Units.  The Company will afford Subscriber the opportunity to obtain any additional information (to the extent that the Company possesses such information or can acquire it without unreasonable effort or expense) necessary or advisable to verify the accuracy of any information set forth in this Agreement, or relating to this investment.

 

6.           Miscellaneous.

 

(a)           Notices. Any notice, demand or other communication which any party hereto may be required, or may elect, to give to anyone interested hereunder shall be sufficiently given if delivered personally or deposited, postage prepaid, in a United States mail letter box, registered or certified mail, return receipt requested. If notice is to be given to Subscriber, such notice shall be sent to Subscriber’s address given at the last page of this Agreement. If notice is to be given to the Company, such notice shall be sent to:

 

	
Firebird Ventures, LLC

	
247 West 30th Street, Floor 11

	
New York, New York 10001

	
Attention:  Mr. Jarret Prussin

Each party, by similar written notice given five days in advance to the other parties in the aforesaid manner, may change the address to which notice may be sent.

 

(b)           Modification. This Agreement shall not be modified, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.

 

(c)           Counterparts. This Agreement may be executed through the use of separate signature pages or in any number of counterparts, and each of such counterparts shall, for all purposes, constitute one agreement binding on all the parties, notwithstanding that all parties are not signatories to the same counterpart.

 

(d)           Survival of Representations Warranties Covenants, and Agreements.  The representations, warranties, covenants, and agreements of the parties hereto contained herein shall survive the completion of the sale of the Units.

 

(e)           Company’s Right of Rejection.  The Company shall, in its sole discretion, have the right to accept or reject this subscription, in whole or in part, for any reason or for no reason.  In the event that this subscription is for any reason rejected, Subscriber shall have no obligations hereunder and shall have no claims against the Company by reason of such rejection.

 

(f)           Binding Effect.  Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and permitted assigns.

 

  

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(g)           Entire Agreement.  This Agreement contains the entire agreement of the parties, and there are no representations, covenants or other agreements except as referred to herein.

 

(h)           Assignability.  This Agreement is not transferable or assignable by Subscriber. Any purported transfer or assignment by the undersigned in violation of the terms hereof shall be null and void.

 

(i)           Applicable Law.  This Agreement shall be governed by and construed in accordance with the substantive laws of the State of New York without regard to any conflict of law provisions contained therein, and venue for any suit or proceeding arising hereunder shall be a court of competent jurisdiction located in the State of New York.

 

(j)           No Waiver.  Failure of either party to exercise any right or remedy under this Agreement, or any other agreement between the parties, or otherwise, or delay by either party in exercising same, will not operate as a waiver thereof. No waiver by any party will be effective unless and until it is in writing and signed by such party.

 

(k)           Severability.  In the event that any provisions of this Agreement are invalid or unenforceable under any applicable statute, regulation or rule of law, then such provisions shall be deemed inoperative to the extent that they may conflict therewith and shall be deemed modified to conform with such statute, regulation or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this ___ day of April, 2010.

 

	
COMPANY:

	 	
SUBSCRIBER:

	 
	 	 	 	 
	
FIREBIRD VENTURES, LLC

	 	
/s/ Boris Rubizhevsky 

	 
	
a Delaware limited liability company

	 	Signature	 
	 	 	 	 	 
	By:	/s/ Jarret Prussin	 	
EcoReady Corporation

	 
	 	Name: Jarret Prussin	 	
Name (print or type)

	 
	 	Title: President	 	 	 
	 	 	 	 	 
	 	 	 	Number of Units subscribed for:	 
	 	 	 	 	 
	 	 	 	[       ]400	 
	 	 	 	 	 
	 	 	 	
Total Purchase Price:

	 
	 	 	 	 	 
	 	 	 	         $1,000,000	 
	 	 	 	 	 
	 	 	 	
The Unit is to be registered in the Unit Register as follows:

	 
	 	 	 	 	 
	 	 	 	
Name (Individual or Entity):

	 
	 	 	 	 	 
	 	 	 	
EcoReady Corporation

	 
	 	 	 	 	 
	 	 	 	
Social Security Number or Tax ID Number:

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
Residence Address:

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
Mailing Address:

	 
	 	 	 	 	 
	 	 	 	
Same as above

	 
	 	 	 	 	 
	 	 	 	
Email Address

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
Facsimile Number

	 
	 	 	 	 	 
	 	 	 	 	 

 

  

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Subscription Acceptance of

FIREBIRD VENTURES, LLC

The foregoing subscription is accepted this ___ day of April 2010, by Firebird Ventures, LLC, with respect to 400 Units.

 

	 	
FIREBIRD VENTURES, LLC

	 
	 	a Delaware limited liability company	 
	 	 	 	 
	
 

	
By: 

	
/s/ Jarret Prussin

	 
	 	 	Name: Jarret Prussin	 

  

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PAYMENT INSTRUCTIONS

Payment can be made by one of the following methods:

1.           Check:

Check should be made out to “Firebird Ventures, LLC” and mailed with all of the investor documents (Subscription Agreement, Investor Questionnaire, and Operating Agreement Signature Page) back to the following address:

Firebird Ventures, LLC

247 West 30th Street, Floor 11

New York, New York 10001

Attention: Jarret Prussin

OR

2.           Wire Transfer:

Wire should be made to the account of Firebird Ventures, LLC at Bank of America using the following:

	
ABA Routing No.:

	
021000322

	
Account Number:

	
483020807198

	
Account Name:

	
Firebird Ventures, LLC

  

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EcoReady Corporation

Name of Subscriber

INVESTOR

QUESTIONNAIRE1

PART I.  Regulation D Matters.

 

(a)         If the Subscriber is a natural person (i.e., an individual), please indicate with an "X" the manner in which such person qualifies as an "accredited investor" pursuant to Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”):

(1)           a natural person whose individual net worth2 (or joint net worth with such person’s spouse) exceeds $1,000,000; or

 

(2)           a natural person who had an individual income3  in excess of $200,000 in each of the two most recent years and who reasonably expects to have an individual income in excess of $200,000 in the current year or who had joint income4  in excess of $300,000 in each of the two most recent years and who reasonably expects to have joint income in excess of $300,000 in the current year; or

 

(3)           a manager or executive officer of the issuer of the Units being offered or sold;

 

1           For purposes hereof, the “Company” means Firebird Ventures, LLC, a Delaware limited liability company.

 

2           For purposes of  this item, “net worth” means the excess of total assets at fair market value, including home and personal property, over total liabilities, including mortgage debt.

 

3           For purposes of this item, “individual income” means adjusted gross income as reported for Federal income tax purposes, less any income attributable to a spouse or to property owned by a spouse, increased by the following amounts (but not including any amounts attributable to a spouse or to property owned by a spouse): (i) the amount of any interest income received which is tax-exempt under Section 103 of the Internal Revenue Code of 1986 (the "Code"), (ii) the amount of losses claimed as a limited partner in a limited partnership (as reported on Schedule E of Form 1040), (iii) any deduction claimed for depletion under Section 611 et seq. of the Code, and (iv) any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income pursuant to the provisions of Section 1202 of the Code prior to its repeal by the Tax Reform Act of 1986.

 

4           For purposes of this item, “joint income” means adjusted gross income as reported for Federal income tax purposes, including any income attributable to a spouse or to property owned by a spouse, increased by the following amounts (including any amounts attributable to a spouse or to property owned by a spouse): (i) the amount of any interest income received which is tax-exempt under Section 103 of the Code, (ii) the amount of losses claimed as a limited partner in a limited partnership (as reported on Schedule E of Form 1040), (iii) any deduction claimed for depletion under Section 611 et seq. of the Code, and (iv) any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income pursuant to the provisions of Section 1202 of the Code prior to its repeal by the Tax Reform Act of 1986.

  

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(b)         If the Subscriber is a natural person (i.e., an individual), please answer questions 1-3 of this subparagraph (b):

(1)           Occupation of subscriber:

_________________________________________________

(2)           Name of employer:

 

_________________________________________________

(3)           Business address, if different from mailing address in Subscription Agreement, of subscriber:

_________________________________________________

_________________________________________________

_________________________________________________

(c)         If the Subscriber is not a natural person (i.e., a corporation, partnership, a limited liability company, trust or other entity), please indicate with an “X” the manner in which such entity qualifies as an "accredited investor" pursuant to Regulation D promulgated under the Act:

(1)           a bank as defined in Section 3(a)(2) of the Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Act, whether acting in its individual or fiduciary capacity;

 

(2)           a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;

 

(3)           an insurance company as defined in Section 2(13) of the Act;

 

(4)           an investment company registered under the Investment Company Act of 1940, as amended;

 

(5)           a business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940, as amended;

 

(6)           a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended;

 

(7)          a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

 

  

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(8)          an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), if either:

	
  

	
 

	
(A)

	
the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company or registered investment adviser.

	
  

	
 

	
(B)

	
the employee benefit plan has total assets in excess of $5,000,000, or

	
  

	
 

	
(C)

	
such a plan is a self-directed plan with investment decisions made solely by persons that are “accredited investors;”

(9)          a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;

 

(10)        one of the following entities which was not formed for the specific purpose of making an investment in the Company and which has total assets in excess of $5,000,000:

	
  

	
(A)

	
an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended;

	
  

	
(B)

	
a corporation, limited liability company or partnership; or

	
  

	
(C)

	
a Massachusetts or similar business trust;

(11)        a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Units, whose purchase of the Units offered is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; or

 

(12)        an entity in which all of the equity owners are “accredited investors.”

(d)        If the Subscriber is not a natural person (i.e., a corporation, partnership, limited liability company, trust or other entity), please mark either (1) or (2) of this subparagraph (d) with an “X”:

(1)          the subscriber was not organized or reorganized for the purpose of acquiring Units; or

(2)        if the subscriber was organized or reorganized for the purpose of acquiring  Units, the number of subscribers, partners, members or other owners, direct or indirect, of the subscriber is ___________ and all such subscribers, partners or other investors are “accredited investors.”5  If one of Newcorp's shareholders is an entity which was organized or reorganized for the purpose of investing in Newcorp, the rule set forth above would be applied again until an individual or an entity which was not so formed is reached.

  

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(e)        If the subscriber is an accredited investor for the reason described in (c)(8)(C) above, a separate Investor Questionnaire must be submitted for each person making investment decisions for the Subscriber.

If the subscriber is an accredited investor for the reason described in (c)(12) above, a separate Investor Questionnaire must be submitted for each stockholder, partner, member or other owner of the Subscriber.

 

If the subscriber is described in (d)(2) above, a separate Investor Questionnaire must be submitted for each direct or indirect stockholder, partner, member or other owner of the Subscriber.

Part II.  Investment Company Act Matters.

 

(a)        The Subscriber is not

(i)         an investment company registered or required to be registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”); or

 

(ii)        a business development company, as defined in Section 2(a)(48) of the Investment Company Act.

             True                                _______  False

(b)        The Subscriber would be defined as an investment company under Section 3(a) of the Investment Company Act, but for the exception provided from that definition by Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act.

             True                                _______  False

  

5           For this calculation, if an entity was organized or reorganized for the purpose of investing in the Subscriber, each of such entity's investors must be treated as an indirect investor in the Subscriber.

In addition, if one of the entity's investors is another entity (the “Higher-Tier Entity”) which was organized or reorganized for the purpose of participating in the Company investment, each of the Higher-Tier Entity's investors must be treated as an indirect investor in the Subscriber and hence included in the blank above.  This rule must be applied again until an individual or entity which was not so formed is reached.

For example, assume that (a) the Subscriber is a partnership which was organized or reorganized for the purpose of investing in the Company, (b) the undersigned partnership has three partners, one of whom is a long-standing corporation, one of whom is an individual, and one of whom is a corporation (“Newcorp) formed for the purpose of investing in the undersigned partnership, and (c) Newcorp has three stockholders.  In this case the answer called for in (d)(2) above would be 5.

  

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(c)         If the answer to (b) above is true, the Subscriber’s commitment to the Company is both (i) less than forty percent (40%) of the Subscriber's committed capital and (ii) less than ten percent (10%) of the Company's committed capital committed by all of its Subscribers.

             True                                _______  False

If the answer to (c) above is false, the number of security holders (other than holders of short-term paper), direct or indirect, of the Subscriber is _____________.

 

If at any time during the term of the Company any statement in (c) above shall no longer be true, the Subscriber shall promptly notify the Company.

(d)        The Subscriber was not organized or reorganized (as interpreted under the Investment Company Act) for the purpose of acquiring the Units.

             True                                _______  False

Part III.  Miscellaneous Matters.

 

No part of the Funds used by the Subscriber to acquire the Shares constitutes assets of any “employee benefit plan within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, or other "benefit plan investor" (as defined in U.S. Department of Labor Reg. §2510.3-101 et seq, as amended) or assets allocated to any insurance company separate account or general account in which any such employee benefit plan or benefit plan investor (or related trust) has any interest.

 

             True                                _______  False

           The Subscriber represents that he is:

	  x	
A citizen or resident under the jurisdiction of the United States.

 

	  x	
Not a citizen or resident under the jurisdiction of the United States.

  

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A citizen or resident under the jurisdiction of the United States means: (i) any United States citizen or a resident of the United States of America (as defined for the purposes of the federal income tax laws of the United States); (ii) any corporation, partnership, trust or other legal entity organized or created under the laws of any United States jurisdiction; or (iii) any organization or entity controlled, directly or indirectly, by a person or persons described in (i) or (ii) or of which such person or persons described in (i) or (ii) are known to be the owners, directly or indirectly, of a majority of the beneficial interests therein.

 

The Subscriber hereby represents and warrants that all of the answers, statements and information set forth in Parts I, II and III of this Investor Questionnaire are true and correct on the date hereof and will be true and correct as of the date; if any, the Subscription Agreement to which this Investor Questionnaire is attached is accepted by the Company.  The Subscriber hereby agrees to provide such additional information as requested by the Company.

[SIGNATURE PAGE FOLLOWS]

  

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IN WITNESS WHEREOF, the undersigned has executed this Investor Questionnaire as of this ___ day of April, 2010.

	 	  

/s/ Boris Rubizhevsky

	 
	 	
Signature of the Subscriber

	 
	 	 	 
	 	
EcoReady Corproation

	 
	 	
Name (Typed or Printed)

	 

 

15ex10-13.htm

Exhibit 10.13

AGREEMENT TO EXCHANGE OWNERSHIP OF FIREBIRD VENTURES LLC MEMBERSHIP UNITS INTO ECOREADY CORPORATION SHARES

THIS EXCHANGE OF MEMBERSHIP UNITS AGREEMENT (this “Agreement”), dated and effective as of _____________ (the “Effective Date”), is entered into by and between ___________ with its principal address at ________________________ and Taxpayer ID _______________ (hereinafter referred to as Firebird Member) and EcoReady Corporation a Florida corporation with its principal place of business at 555 Winderley Place, Suite 300, Orlando, Florida 32953 (hereinafter referred to as “EcoReady”), collectively sometimes referred to as “the Parties”.

WITNESSETH:

WHEREAS, the Parties are members of FIREBIRD VENTURES, LLC, a limited liability company duly organized and validly existing under the laws of the State of Delaware (hereinafter  “Company” “Firebird Ventures” or the “LLC”), with its wholly owned subsidiary FIREBIRD RESEARCH, LLC, a limited liability company duly organized and validly existing under the laws of the State of New York (hereinafter “Firebird Research”), both having a principal place of business at 247 West 30th Street, 11th Floor, New York, New York 10001 (the “Company”); and

WHEREAS, Exhibit A represents membership ownership positions in the Firebird Ventures as of May 12, 2010 that is based on the expected investments of $1million by EcoReady into Firebird Ventures for the purpose of acquiring Firebird Research, LLC.  A total of 1,000 membership units were allocated as of May 12, 2010 date; and

WHEREAS, Exhibit B represents membership ownership positions in the Firebird Ventures as of December 31, 2010, which is based on the total investment by EcoReady into Firebird Ventures of $750,000 and the total and final number of membership units issued being 900 units; and

WHERAS, The Firebird Member ownership position is _________ membership units; and

WHEREAS, EcoReady received 300 Class A Firebird Ventures membership units in exchange for its $750,000 investment, setting unit value at $2,500 per 1 (one) Firebird Ventures membership unit; and

WHEREAS, The Firebird Member has expressed interest in exchanging its Firebird Ventures membership units into EcoReady shares, currently trading under stock symbol ECRD.

 

NOW, THEREFORE, for valuable consideration, the parties hereby agree as follows:

1.           TRANSFER OF UNIT OWNERSHIP.   The Parties have agreed to exchange each Firebird Ventures membership unit into 1,316 restricted shares of EcoReady, based on the current price of $1.90 per share, with Class A designation providing additional 434 of restricted shares per each Class A membership unit, resulting in each Class A membership unit exchanged into 1,750 restricted shares of EcoReady.  Notwithstanding the transfer of Firebird membership unit ownership to EcoReady, as one of the Class __ unit holders, the Firebird Member will be entitled to repayment of its original cash investment of $________ (ten thousand) prior to Firebird making any profit distributions. Such repayments will be made to all original Class __ Firebird Members on a prorated basis and until their initial investment has been paid back in full.

 

  

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2.           NUMBER OF ECOREADY SHARES RECEIVED.  Firebird Member for its __ Class __ membership units will receive ______ EcoReady restricted shares.

3.           NO OTHER CHANGES IN COMPANY AGREEMENTS.   The Parties hereby acknowledge that no other changes and/or modifications in the Company Operating Agreement and any other agreements executed and existing as of this date, will not be effected, expect that EcoReady will assume Firebird Ventures management responsibilities from Navillus Group and that EcoReady will appoint new members to Firebird Ventures board of managers.

4.           NO OTHER CONTRACTS.  The Parties represent and warrant that they are not a party to any contract or agreement with any third party, which would preclude them from entering into this Agreement.

5.           INDEMNITY.  The Parties and the Company shall indemnify, defend and hold harmless each other, its parent companies, subsidiaries and affiliates, and each of their respective directors, officers, shareholders, employees, agents, other brokers, assigns and attorneys, for any claim, loss, liability, damage, cost, fine or expense (including reasonable attorneys’ fees) related to any allegation regarding: any obligation undertaken, or representation or warranty made, by EcoReady pursuant to this Agreement; the performance of work by, or the conduct of, EcoReady, its agents, subcontractors and/or employees; any act, omission or negligence by EcoReady; any injury to person or property resulting from or related to the Services; and, any injury to person or property of Company or any of Company’s agents, subcontractors and/or employees.  Company shall indemnify, defend and hold harmless EcoReady, its parent companies, subsidiaries and affiliates, and each of their respective directors, officers, shareholders, employees, agents, other brokers, assigns and attorneys, for any claim, loss, liability, damage, cost, fine or expense (including reasonable attorneys’ fees) related to any allegation regarding: any obligation undertaken, or representation or warranty made, by Company pursuant to this Agreement; the performance of work by, or the conduct of, Company, its agents, subcontractors and/or employees; any act, omission or negligence by Company; any injury to person or property resulting from or related to the Services; and, any injury to person or property of EcoReady or any of EcoReady’s agents, subcontractors and/or employees.

6.           CONFIDENTIALITY.  Neither Party will disclose any Confidential Information to any person or entity for any reason, except as required to perform its obligations under this Agreement.  For purposes of this Agreement, Confidential Information shall include the financial terms of this Agreement as well as all records, reports, documents, designs, plans, contracts, literature, data, software, computer programs, source code, object code, information, memoranda, correspondence, and other material created, developed or used by EcoReady or Company pursuant to this Agreement, or delivered or transmitted to one party to the other party pursuant to this Agreement or otherwise. Confidential Information shall also include information in a party’s knowledge or possession concerning its business, marketing, administrative, advertising, budgeting or organizational plans, practices, policies and procedures, as well as  customer lists and scientific or technical information, regardless of whether such knowledge or information was obtained pursuant to this Agreement or otherwise. Each party shall own all rights, title and interest in all of its Confidential Information. The Parties agree that such Confidential Information is valuable and unique and that breach of this Paragraph will result in irreparable injury to the other party for which the party shall be entitled to immediate injunctive relief (without the necessity of notice or a bond), in addition to all other remedies available at law or in equity.  Confidential information shall not include any information already in the public domain.

 

  

2

  

 

7.           RELATIONSHIP.  Nothing herein shall create any agency, joint venture, or partnership relationship between the Parties, or between any Party and any of the other Party’s employees, contractors, agents or brokers.

 

8.           ENTIRE AGREEMENT.  This Agreement represents the entire agreement between the parties and supersedes and cancels all other contracts, agreements, representations and understandings between the parties, whether written or oral, expressed or implied.  This Agreement shall bind and inure to the benefit of each party, their parent companies, subsidiaries and affiliates, and each of their respective officers, directors, shareholders, investors, business associates, owners, partners, and employees, brokers, agents, contractors and assigns.  This Agreement may not be modified or amended except in writing signed by both parties.  The terms of this Agreement are the result of negotiations in which each party had the opportunity to review and revise any term herein.  Consequently, this Agreement shall not be construed for or against either party as a result of the manner in which it was drafted.

9.           GOVERNING LAW.  This Agreement shall be governed by and interpreted and enforced in accordance with Florida law.  Any suit or action regarding this Agreement or the Services performed by EcoReady shall be brought in the federal or state courts located in Orlando, Florida.  Both Parties hereby consent to jurisdiction and venue in Orlando, Florida for purposes of any suit or action arising out of this agreement.

10.         AUTHORITY.  Each Party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder.  Any individual signing this Agreement on behalf of a Party represents and warrants that he or she has full authority to do so.  The Parties represent and warrant that they have read and completely understand all provisions of this Agreement, that they have not relied on EcoReady for any legal, financial or other advice in evaluating the terms of this Agreement, and that they enter this Agreement of their own free will and after obtaining such legal or other advice as they deem appropriate.  The entire agreement between the parties, and may only be modified by a Supplementary Agreement thereto, duly signed by an officer of each of the parties hereto.

11.         NOTICES.  All notices hereunder shall be sent by hand delivery, facsimile transmission, overnight receipted delivery or by registered or certified mail to the Parties hereto as follows:

To Firebird Member:

Name:                         

Address:                         

Taxpayer ID No.:

Phone:

Fax:

Email:

To EcoReady:

EcoReady Corporation

Attn: Boris Rubizhevsky, CEO

555 Winderley Place, Suite 300,

Orlando, Florida 32953

(321) 735-0558 (office)

(321-978-0343 (fax)

  

3

  

 

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement, thereunto duly authorized on the day and year above written.

 

	FIREBIRD MEMBER 	 	COMPANY:	 
	 	 	Firebird Ventures, LLC and Firebird Research, LLC

 

	By:	 	 	By:	 	 
	 	 	 	 	 	 
	Name:	 	 	Name:	 	 
	 	 	 	

Managing Member

	 
	 	 	 	 	 	 
	 	 	 	

ECOREADY CORPORATION:

	 
	 	 	 	 	 	 
	 	 	 	By:	 	 
	 	 	 	 	

Boris Rubizhevsky

	 
	 	 	 	 	

President &CEO

	 

 

  

4

  

 

EXHIBIT A

May 12, 2010 Ownership

 

	 	 	Cash Investment	 	# of Units	 	% of Total Units
	 	 	 	 	 	 	 
	

Class A Members:

	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
EcoReady Corporation

	  	

$ 650,000 on the Effective Date

	  	
400

	  	40 %
	
1365 N. Courtenay Parkway

	  	

$ 100,000 within thirty (30) days

	  	  	  	  
	
Suite A

	  	
following the Effective Date

	  	  	  	  
	
Merritt Island, Fl 32953

	  	

$ 250,000 within ninety (90)

	  	  	  	  
	
Taxpayer ID No. 65-0736042

	  	
days following the Effective Date,

	  	  	  	  
	  	  	
or sooner if requested by the Board

	  	  	  	  
	  	  	
EcoReady Corporation’s Capital Investment

	  	  	  	  
	  	  	
Commitment is $1,000,000

	  	  	  	  
	  	  	  	  	  	  	  
	
Rose Meadow LLC

	  	

$ 100,000

	  	
40

	  	4 %
	
85 Eleventh Street

	  	  	  	  	  	  
	
Garden City, NY 11530

	  	  	  	  	  	  
	
Taxpayer ID No. 06-4445706

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Pine Street Capital LLC

	  	

$ 15,000

	  	
6

	  	0.6 %
	
200 West 20th Street 708

	  	  	  	  	  	  
	
New York, NY 10011

	  	  	  	  	  	  
	
Taxpayer ID No. ###-##-####

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Daniel Katz

	  	

$ 10,000

	  	
4

	  	0.4 %
	
333 East 79th Street

	  	  	  	  	  	  
	
Apt 15MZ

	  	  	  	  	  	  
	
New York, NY 10075

	  	  	  	  	  	  
	
Taxpayer ID No. 091-64-025

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
David Gumberg

	  	

$ 10,000

	  	
4

	  	0.4 %
	
247 West 30th Street

	  	  	  	  	  	  
	
11th Floor

	  	  	  	  	  	  
	
New York, NY 10001

	  	  	  	  	  	  
	
Taxpayer ID No. ###-##-####

	  	  	  	  	  	  

  

5

  

	
Class B Members:

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Navillus Group, LLC

	  	$ 1	  	
346

	  	34.6 %
	
247 West 30th Street

	  	  	  	  	  	  
	
Floor 11

	  	  	  	  	  	  
	
New York, NY 10001

	  	  	  	  	  	  
	
Taxpayer ID No.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
National Holding Company

	  	$ 1	  	
50

	  	5 %
	
2374 Motor Parkway

	  	  	  	  	  	  
	
Ronkonkoma, NY 11779

	  	  	  	  	  	  
	
Taxpayer ID No. 27-1986113

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Shorebrooks Holding Corp.

	  	$ 1	  	
50

	  	5 %
	
133 Cirrus Rd

	  	  	  	  	  	  
	
Holdrook, NY 11741

	  	  	  	  	  	  
	
Taxpayer ID No. 27-2337613

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Class C Members:

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Robert Feldstein

	  	$ 1	  	
50*

	  	5 %
	
16 Springhurst Park Drive

	  	  	  	  	  	  
	
Dobbs Ferry, NY 10522

	  	  	  	  	  	  
	
Taxpayer ID No.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
Charles Dexter Powers, Jr.

	  	$ 1	  	
50*

	  	5 %
	
Unit 503, Block 3

	  	  	  	  	  	  
	
Nan Fung Industrial City

	  	  	  	  	  	  
	
18 Tin Hau Road

	  	  	  	  	  	  
	
Tuen Mun, Hong Kong, N.T. SAR

	  	  	  	  	  	  
	
Taxpayer ID No.

	  	  	  	  	  	  

 

* Subject to vesting and forfeiture as described in the Operating Agreement

  

6

  

 

EXHIBIT B

December 31, 2010 Ownership

 

	  	 	
Cash Investment

	 	
# of Units

	  	% of Total Units
	  	 	  	 	  	  	  
	
Class A Members

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
EcoReady Corporation

	 	
$750,000

	 	
300

	  	
33.3%

	
1365 N. Courtenay Parkway

	 	  	 	  	  	  
	
Suite A

	 	  	 	  	  	  
	
Merritt Island, Fl 32953

	 	  	 	  	  	  
	
Taxpayer ID No. 65-0736042

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Rose Meadow LLC

	 	
$100,000

	 	
40

	  	
4.4%

	
85 Eleventh Street

	 	  	 	  	  	  
	
Garden City, NY 11530

	 	  	 	  	  	  
	
Taxpayer ID No. 06-4445706

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Pine Street Capital LLC

	 	
$15,000

	 	
6

	  	
0.66%

	
200 West 20th Street 708

	 	  	 	  	  	  
	
New York, NY 10011

	 	  	 	  	  	  
	
Taxpayer ID No. ###-##-####

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Daniel Katz

	 	
$10,000

	 	
4

	  	
0.44%

	
333 East 79th Street

	 	  	 	  	  	  
	
Apt 15MZ

	 	  	 	  	  	  
	
New York, NY 10075

	 	  	 	  	  	  
	
Taxpayer ID No. 091-64-025

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
David Gumberg

	 	
$10,000

	 	
4

	  	
0.44%

	
247 West 30th Street

	 	  	 	  	  	  
	
11th Floor

	 	  	 	  	  	  
	
New York, NY 10001

	 	  	 	  	  	  
	
Taxpayer ID No. ###-##-####

	 	  	 	  	  	  
	  	 	  	 	  	  	  

 

  

7

  

 

	
Class B Members:

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Navillus Group, LLC

	 	
$1

	 	
346

	  	
38.4%

	
247 West 30th Street

	 	  	 	  	  	  
	
Floor 11

	 	  	 	  	  	  
	
New York, NY 10001

	 	  	 	  	  	  
	
Taxpayer ID No.

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
National Holding Company

	 	
$1

	 	
50

	  	
5.5%

	
2374 Motor Parkway

	 	  	 	  	  	  
	
Ronkonkoma, NY 11779

	 	  	 	  	  	  
	
Taxpayer ID No. 27-1986113

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Shorebrooks Holding Corp.

	 	
$1

	 	
50

	  	
5.5%

	
133 Cirrus Rd

	 	  	 	  	  	  
	
Holdrook, NY 11741

	 	  	 	  	  	  
	
Taxpayer ID No. 27-2337613

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Class C Members:

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Robert Feldstein

	 	
$1

	 	
50

	  	
5.5%

	
16 Springhurst Park Drive

	 	  	 	  	  	  
	
Dobbs Ferry, NY 10522

	 	  	 	  	  	  
	
Taxpayer ID No.

	 	  	 	  	  	  
	  	 	  	 	  	  	  
	
Charles Dexter Powers, Jr.

	 	
$1

	 	
50

	  	
5.5%

	
Unit 503, Block 3

	 	  	 	  	  	  
	
Nan Fung Industrial City

	 	  	 	  	  	  
	
18 Tin Hau Road

	 	  	 	  	  	  
	
Tuen Mun, Hong Kong, N.T. SAR

	 	  	 	  	  	  
	
Taxpayer ID No.

	 	  	 	  	  	  

 

8

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