SUBSCRIPTION AGREEMENT FOR LIMITED PARTNERSHIP INTERESTConfidential Copy No.
Prospective Investor: City of Clearwater
_100 South Myrtle Avenue
Clearwater, FL 33756 -5520
Contact Person: Steve Moskun
Telephone No:_ 727 -562 -4532
Fax No: 727 -562 -4535
State /Country of Domicile: Florida
Capital Commitment (USD):$_5,000,000
MOLPUS WOODLANDS FUND IV, L.P.
SUBSCRIPTION AGREEMENT
THE OFFERING OF SECURITIES DESCRIBED HEREIN HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT "), OR UNDER ANY
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.
THIS OFFERING IS MADE PURSUANT TO RULE 506 OF REGULATION D UNDER SECTION 4(a)(2)
OF THE SECURITIES ACT, WHICH EXEMPTS FROM SUCH REGISTRATION TRANSACTIONS
NOT INVOLVING A PUBLIC OFFERING. FOR THIS REASON, THESE SECURITIES WILL BE SOLD
ONLY TO INVESTORS WHO MEET CERTAIN MINIMUM SUITABILITY QUALIFICATIONS
DESCRIBED HEREIN.
A SUBSCRIBER SHOULD BE PREPARED TO BEAR THE ECONOMIC RISK OF AN INVESTMENT
IN THE FUND (AS DEFINED HEREIN) FOR AN INDEFINITE PERIOD OF TIME BECAUSE THE
LIMITED PARTNERSHIP INTERESTS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OR THE LAWS OF ANY OTHER JURISDICTION, AND, THEREFORE, CANNOT BE SOLD
UNLESS THEY ARE SUBSEQUENTLY REGISTERED OR AN EXEMPTION FROM REGISTRATION
IS AVAILABLE. THERE IS NO OBLIGATION OF THE ISSUER TO REGISTER THE LIMITED
PARTNERSHIP INTERESTS UNDER THE SECURITIES ACT OR THE LAWS OF ANY OTHER
JURISDICTION. TRANSFER OF THE LIMITED PARTNERSHIP INTERESTS IS ALSO RESTRICTED
BY THE TERMS OF THE LIMITED PARTNERSHIP AGREEMENT RELATING THERETO.
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MOLPUS WOODLANDS FUND IV, L.P.
SUBSCRIPTION AGREEMENT
FOR LIMITED PARTNERSHIP INTEREST
Molpus Woodlands Fund IV, L.P.
c/o Molpus Woodlands Fund IV -GP, LLC
654 North State Street
Jackson, Mississippi 39202
Attention: Michael R. Cooper, Esq.
Ladies and Gentlemen:
The undersigned prospective investor, City of Clearwater (the "Subscriber "), hereby tenders this
Subscription Agreement to Molpus Woodlands Fund IV -GP, LLC, a Delaware limited liability company (the
"General Partner "), which serves as the general partner of Molpus Woodlands Fund IV, L.P., a Delaware
limited partnership (the "Fund "), on the terms and conditions hereinafter set forth. Capitalized terms used
but not defined herein shall have the meanings ascribed to them in the Private Placement Memorandum of
the Fund (the "Memorandum ").
A. Subscription. The Subscriber, intending to be legally bound, hereby irrevocably agrees to
contribute, in installments, an aggregate amount of five million Dollars ($5,000,000) (the "Capital
Commitment ") in the Fund pursuant to the terms of, and at the times required by, the Amended and Restated
Limited Partnership Agreement of the Fund (the "Partnership Agreement ") in return for a limited partnership
interest in the Fund offered by the Fund pursuant to the Memorandum (the "Interest "). All payments of the
Subscriber's Capital Commitment shall be made in cash by check made payable to "Molpus Woodlands
Fund IV, L.P." or by wire transfer pursuant to instructions provided by the General Partner prior to the due
date of such payments. The Subscriber acknowledges and agrees that the minimum subscription amount shall
be $5,000,000, unless waived by the General Partner of the Fund in its sole discretion. The Subscriber
hereby acknowledges receipt of a copy of the Partnership Agreement, attached hereto as Exhibit A. The
Partnership Agreement will be entered into at the Initial Closing by all Partners of the Fund.
The Subscriber is delivering herewith the following documents:
(i)
an executed Joinder Agreement to the Partnership Agreement, in form as attached
hereto as Exhibit C (the "Joinder Agreement "); and
(ii) a dated, completed and executed IRS Form W -9.
B. Acceptance of Subscription. The Subscriber acknowledges and agrees that the subscription
for the Interest contained within this Subscription Agreement is an offer by the Subscriber to invest the
Capital Commitment indicated in Section A in return for the Interest. The Subscriber further acknowledges
and agrees that the subscription for the Interest contained within this Subscription Agreement shall be subject
to acceptance by the General Partner of the Fund and that the General Partner shall have the right,
exercisable in its sole discretion, to accept or reject, in whole or in part, such subscription. If the subscription
is accepted by the General Partner in whole or in part, the Fund will thereafter execute this Subscription
Agreement and deliver the same to the Subscriber as soon as practicable thereafter. The Subscriber further
acknowledges and agrees that upon a default of the Subscriber's Capital Commitment obligations to the
Fund, the Interest may, among other consequences, be subject to forfeiture in accordance with the terms of
the Partnership Agreement. If this subscription is rejected by the Fund in whole or in part, the General
Partner shall promptly return all funds received from the Subscriber applicable to the rejected portion of the
subscription to the Subscriber without interest thereon or deduction therefrom.
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C. Fund's Conditions to Closing. The Fund's obligations hereunder are subject to acceptance
by the General Partner of the Subscriber's subscription and to the fulfillment, prior to or at the time of
closing, of each of the following conditions:
(i) The representations and warranties of the Subscriber contained in this Subscription
Agreement shall be true and correct at the time of closing; and
(ii) All proceedings in connection with the transactions contemplated hereby and all documents
and instruments incident to such transactions shall be satisfactory in substance and in form to
the General Partner, the Fund and Bradley Arant Boult Cummings LLP ( "Fund Counsel "),
and the General Partner, the Fund or Fund Counsel shall have received all such counterpart
originals or certified or other copies of such documents as the Fund may request.
D. Background and Administrative Information.
NAME IN WHICH INTEREST IS TO BE HELD:
City of Clearwater
TAX I.D. NUMBER: 596000289
If the Subscriber is an entity other than an individual, a copy of the organizational documents of the
Subscriber is enclosed with this Subscription Agreement.
PRINCIPAL BUSINESS AND CORRESPONDENCE ADDRESS:
100 South Myrtle Avenue
Street
Clearwater FL 33756 -5520
City State Zip Code
SUBSCRIBER'S TELEPHONE NUMBER AND E -MAIL ADDRESS:
Telephone: L727D 562 -4532
E -Mail: steve.moskun @myclearwater.com
E. Representations and Warranties of the Subscriber. In order to permit the Fund to
evaluate whether it may properly accept the subscription for an Interest contained within this Subscription
Agreement and to induce the Fund to accept such subscription, the Subscriber hereby acknowledges,
represents and warrants to, and covenants and agrees with, the Fund as follows:
(i)
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The Subscriber received the Memorandum, read the same and all annexes thereto
and enclosures therewith carefully, and is fully familiar with the contents thereof.
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(ii) No representations or warranties have been made to the Subscriber by the Fund, the
General Partner or any agent of said persons, other than as set forth in the
Memorandum, the Partnership Agreement and this Subscription Agreement.
(iii) The Interest will be held under the following type of ownership (please check the
applicable blank):
Individual
Community Property
Trust
Partnership
X Corporation
Limited Liability Company
Other:
(iv)
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The Subscriber is and reasonably expects to continue to be an "accredited investor"
as that term is defined in Rule 501(a) of Regulation D promulgated by the U.S.
Securities and Exchange Commission (the "SEC ") under the Securities Act of 1933,
as amended (the "Securities Act "), as follows (please initial the space beside the
applicable category) (upon request of the Fund, the Subscriber must provide
information to document the representation initialed, as described within each
paragraph):
(a) A bank as defined in section 3(a)(2) of the Securities Act or a savings and
loan association or other institution as defined in section 3(a)(5)(A) of the
Securities Act, whether acting in its individual or fiduciary capacity; a
broker or dealer registered pursuant to Section 15 of the Securities Exchange
Act of 1934; an insurance company as defined in section 2(13) of the
Securities Act; an investment company registered under the Investment
Company Act of 1940 or a business development company as defined in
section 2(a)(48) of that Act; 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; 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; an employee benefit plan
within the meaning of the Employee Retirement Income Security Act of
1974, if the investment decision is made by a plan fiduciary, as defined in
section 3(21) of such Act, which is either a bank, insurance company, or
registered investment adviser, or if the employee benefit plan has total assets
in excess of $5,000,000, or, if a self - directed plan, with investment decisions
made solely by persons that are accredited investors;
(b) A private business development company as defined in section 202(a)(22)
of the Investment Advisers Act of 1940;
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(v)
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(c) An organization described in section 501(c)(3) of the Internal Revenue
Code, or a corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the securities
offered, with total assets in excess of $5,000,000;
(d) A director, executive officer, or general partner of the Fund, or a director,
executive officer, or manager of the General Partner;
(e) A natural person whose individual net worth, or joint net worth with such
person's spouse, at the time of his or her purchase exceeds $1,000,000,
excluding the value of his or her primary residence;
(f) A natural person who had an individual income in excess of $200,000 in
each of the two most recent years, or joint income with that person's spouse
in excess of $300,000 in each of those years, and has a reasonable
expectation of reaching the same income level in the current year;
(g)
A trust with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is directed by a
person with knowledge and experience in business and financial matters
such that he is capable of evaluating the merits and risks of the prospective
investment; or
(h) An entity (including an Individual Retirement Account (IRA)) in which all
of the equity owners or beneficiaries are accredited investors under clauses
(a), (b), (c), (d), (e), (f) or (g) above.
The Subscriber is and reasonably expects to continue to be a "qualified purchaser"
as that term is defined in Section 2(a)(51) of the Investment Company Act of 1940,
as amendment (the "Investment Company Act "), as follows (please initial the space
beside the applicable category) (upon request of the Fund, the Subscriber must
provide information to document the representation initialed, as described within
each paragraph):
(a) A natural person (including any person which is acquiring the Interest with
his or her spouse in a joint capacity, as community property or similar
shared interest) that either individually or together with the Subscriber's
spouse, owns investments (as defined by the SEC in Rule 2a51 -1
promulgated under the Investment Company Act) that are valued at not less
than $5,000,000;
(b) An entity that owns investments (as defined by the SEC in Rule 2a51 -1
promulgated under the Investment Company Act) that are valued at not less
than $5,000,000 and is owned directly or indirectly by two (2) or more
natural persons related as siblings, spouses (including former spouses) or
direct lineal descendants by birth or adoption, spouses of such persons, the
estates of such persons, or foundations, charitable organizations or trusts
established by or for the benefit of such persons;
(c) A trust not covered by clause (b) above and not formed for the specific
purpose of acquiring the Interest, as to which the trustee or other person
authorized to make decisions with respect to the trust and each settler or
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other person who has contributed assets to the trust is a person described in
clause (a) or (b) above or clause (d) below;
X (d) An entity, acting for its own account or the accounts of others described in
clause (a), (b) or (c) above, this clause (d) or clause (e) below, that in the
aggregate owns and invests on a discretionary basis investments (as defined
by the SEC in Rule 2a51 -1 promulgated under the Investment Company
Act) that are valued at not less than $25,000,000; or
(e) An entity, all of the outstanding securities of which are owned by persons or
entities described in clauses (a) through (d) above or this clause (e). If the
Subscriber belongs to this category only, list on a separate sheet to be
attached hereto the equity owners of the Subscriber and the investor
category which each such equity owner satisfies.
(vi) If the Subscriber has made one of the representations set forth in clauses (b) through
(e) of subparagraph (v), the Subscriber makes one of the following representations:
(a) The Subscriber would be treated as an "investment company" under the
Investment Company Act but for the fact that the Subscriber qualifies for
one of the exemptions from the definition of "investment company"
provided for in Section 3(c)(1) or 3(c)(7) of the Investment Company Act.
True (Please answer clause (b) below).
X_ False (Please skip to subparagraph (vii) below).
(b) If the Subscriber checked "true" in clause (a) above, the Subscriber certifies
that the Subscriber has read and understands the provisions of Section
2(a)(51)(C) of the Investment Company Act and Rule 2a51 -2 promulgated
under the Investment Company Act (copies of which are attached hereto as
Exhibit B) and makes one of the following representations:
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(1) No consent of the Subscriber's direct or indirect beneficial
owners is required for the Subscriber's treatment as a "qualified
purchaser" with respect to the Fund;
(2) Both: (A) all of the beneficial owners of the Subscriber's
outstanding securities (other than short-term paper), determined in
accordance with Section 3(c)(1)(A) of the Investment Company
Act, that acquired such securities on or before April 30, 1996 (the
"Pre- Amendment Beneficial Owners ") and (B) all of the Pre -
Amendment Beneficial Owners of any company that, but for the
exclusions from the definition of "investment company" provided
for in Section 3(c)(1) or 3(c)(7) of the Investment Company Act,
would be an "investment company" and that directly or indirectly
owns any outstanding securities of the Subscriber have consented to
its treatment as a "qualified purchaser" under the Investment
Company Act with respect to the Fund;
(3) The Subscriber has made either of the representations set
forth in clauses (b) or (c) of subparagraph (v) above, and all of the
6
trustees, directors or general partners of the Subscriber have
consented to the Subscriber's treatment as a "qualified purchaser"
with respect to the Fund; or
(4) The Subscriber cannot make any of the representations set
forth in clauses (1), (2) or (3) above.
(vii) The Subscriber has such knowledge and experience in financial and business matters
that the Subscriber is capable of evaluating the merits and risks of the Subscriber's
investment in the Fund.
(viii) The execution and delivery of the Partnership Agreement and this Subscription
Agreement, the consummation of the transactions contemplated thereby and the
performance of the obligations thereunder will not conflict with or result in any
violation of or default under any provision of any other agreement or instrument to
which the Subscriber is a party or any license, permit, franchise, judgment, order,
writ or decree, or any statute, rule or regulation, applicable to the Subscriber.
(x)
No suit, action, claim, investigation or other proceeding is pending or, to the best of
the Subscriber's knowledge, is threatened against the Subscriber which questions the
validity of the Partnership Agreement or this Subscription Agreement or any action
taken or to be taken pursuant to the Partnership Agreement or this Subscription
Agreement.
In formulating a decision to invest in the Fund, the Subscriber has not relied or acted
on the basis of any representations or other information purported to be given on
behalf of the Fund or the General Partner, except as set forth in the Memorandum
and the Partnership Agreement (it being understood that no person has been
authorized by the Fund or the General Partner to furnish any such representations or
other information).
The Subscriber (a) is aware that there is no public trading market for the Interest and
it is highly unlikely that such a market will develop, (b) has adequate means of
providing for the Subscriber's currents needs and personal contingencies, (c) has no
need for liquidity in this investment, (d) has the ability to bear the economic risk of
this investment, and (e) can afford a complete loss of the purchase price of this
investment. The Subscriber does not have any reason to anticipate any change in the
Subscriber's personal circumstances, financial or otherwise, which may cause or
require any sale or distribution by the Subscriber of all or any part of the Interest
herein subscribed.
(xii) The Subscriber is purchasing the Interest for investment purposes only, for his, her
or its own account, and not with a view towards the distribution or resale thereof.
(xiii) The Subscriber understands and acknowledges that the Fund will not accept the
investment of funds by natural persons or entities acting, directly or indirectly, in
contravention of any applicable money laundering regulations or conventions of the
United States or other international jurisdictions, and represents and warrants that
neither the Subscriber, nor any of its beneficial owners, (each an "Underlying
Beneficial Owner ") (i) appear on the Specially Designated Nationals and Blocked
Persons List of the Office of Foreign Assets Control of the United States Department
of the Treasury ( "OFAC "); (ii) are a current or former senior official in the
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1/2457657 2
executive, legislative, administrative, military or judicial branches of a foreign (non -
U.S.) government (whether elected or not), a current or former senior officials of a
major foreign (non -U.S.) political party, a current or former senior executives of a
foreign (non -U.S.) government -owned corporation, or commercial enterprises,
corporations, businesses or other entities that have been formed by, or for the benefit
of, any such individuals (a "Senior Foreign Political Figure "), an immediate family
members of a Senior Foreign Political Figure, or person who is widely and publicly
known (or is actually known) to be a close associate of a Senior Foreign Political
Figure; (iii) are a person or entity resident in, or organized or chartered under, the
laws of a jurisdiction that has been designated by the U.S. Secretary of the Treasury
under Section 311 or 312 of the U.S. PATRIOT Act as warranting special measures
due to money laundering concerns; or (iv) are a bank organized under foreign law or
an agency, branch or office located outside the United States of a bank (a "Foreign
Bank ") that does not maintain a physical presence (a "Physical Presence ") in any
country, meaning a place of business located at a fixed address, other than solely a
post office box or an electronic address, in a country in which the foreign bank is
authorized to conduct banking activities, at which location the Foreign Bank: (w)
employs one or more individuals on a full -time basis; (x) maintains operating
records related to its banking activities; (y) is subject to inspection by the banking
authority that licensed the Foreign Bank to conduct banking activities; and (z) does
not provide banking services to any other Foreign Bank that does not have a
physical presence in any country and that is not a regulated affiliate (a "Foreign
Shell Bank "); except such prohibition shall not include a Foreign Bank that has a
physical presence in any country and is a "regulated affiliate," i.e., an affiliated
depository institution, credit union, or Foreign Bank that maintains a Physical
Presence in the United States or a foreign country, as applicable, and is subject to
supervision by a banking authority in the country regulating such affiliated
depository institution, credit union, �r Foreign Banks; or (v) are otherwise a party
with which the Fund is prohibited to deal under the laws of the United States.
The Subscriber further represents that the monies used to fund the investment in the
Interests are not derived from, invested for the benefit of, or related in any way to,
the governments of, or persons within, (i) any country under a U.S. embargo
enforced by OFAC, (ii) that has been designated as a "non- cooperative country or
territory" by the Financial Action Task Force on Money Laundering or (iii) that has
been designated by the U.S. Secretary of the Treasury as a "primary money
laundering concern."
The Subscriber further represents and warrants that the Subscriber (i) has conducted
thorough due diligence with respect to all of its Underlying Beneficial Owners, (ii)
has established the identities of all Underlying Beneficial Owners and the source of
each of the Underlying Beneficial Owner's funds and (iii) will retain evidence of
any such identities, any such source of funds and any such due diligence.
The Subscriber further represents that the Subscriber does not know or have any
reason to suspect that (i) the monies used to fund the Subscriber's investment in the
Interests have been or will be derived from or related to any illegal activities,
including but not limited to, money laundering activities, and (ii) the proceeds from
the Subscriber's investment in the Interests will be used to finance any illegal
activities.
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1/2457657.2
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The Subscriber further agrees and acknowledges that, among other remedial
measures, (i) the Fund may be obligated to "freeze the account" of such Subscriber,
either by prohibiting capital contributions by the Subscriber and /or segregating
assets of the Subscriber in compliance with governmental regulations and/or if the
General Partner determines in its sole discretion that such action is in the best
interests of the Fund and (ii) the Fund may be required to report such action or
confidential information relating to the Subscriber (including, without limitation,
disclosing the Subscriber's identity) to relevant regulatory authorities. The
Subscriber further represents and warrants that the Subscriber will promptly notify
the Fund of any change in its status or the status of any Underlying Beneficial
Owner(s) with respect to its representations and warranties hereunder.
The Subscriber understands and acknowledges that the Fund is, or may in the future
become subject to, anti -money laundering statutes, regulations and conventions of
the United States or other international jurisdictions, and the Subscriber agrees to
execute instruments, provide information, or perform any other acts as may
reasonably be requested by the General Partner, or other authorized representative of
the General Partner, for the purpose of: (i) carrying out due diligence as may be
required by applicable law to establish the identity of (x) the Subscriber, (y) any
Underlying Beneficial Owner(s) of the Subscriber and (z) any investors, partners,
members, directors, officers, agents, affiliates, beneficiaries or grantors of the
Subscriber, and any Underlying Beneficial Owner(s) of such investors, partners,
members, directors, officers, agents, affiliates, beneficiaries or grantors; (ii)
maintaining records of identities, or verifications or certifications as to identities;
and (iii) taking any other actions as may be required to comply with and remain in
compliance with money laundering statutes, regulations or conventions applicable to
the Fund.
The Subscriber is familiar with the nature of, and risks attendant to, investments in
securities of the type represented by the Interest and has determined that the
purchase of the Interest is consistent with the Subscriber's investment objectives.
The Subscriber has been advised and understands that an investment in the Interest
is speculative and involves a high degree of risk.
The Subscriber confirms that all documents, records, and books pertaining to the
Fund and the investment have been made available to the Subscriber and the
Subscriber also confirms that the Subscriber, to the extent it, he or she desired to do
so, has been given an opportunity to make further inquiries of the Fund and its
representatives with respect to the Fund and the investment and has requested and
received all information about the Fund the Subscriber deemed necessary or
appropriate to review prior to making an investment decision.
The Subscriber is aware that the Interest has not been, and there are no present plans
for it (or any other interests in the Fund) to be, registered under the Securities Act or
any state securities law. Accordingly, the Interest must be held indefinitely by the
Subscriber unless it is registered under the Securities Act and any applicable state
securities law, or unless, in the opinion of counsel satisfactory to counsel for the
Fund, a sale or transfer may be made without such registration. The Subscriber also
understands that the Fund does not presently contemplate that any registration will
be made or that the Fund will take steps which will make the general provisions of
Rule 144 available to permit the resale of the Interest. The Subscriber is also aware
9
that the Fund does not presently intend, and it is not under any obligation, to take
any action or bear any expense: (a) to register the Interest (or any other interests in
the Fund) under the Securities Act or any state securities law for offer, sale, transfer,
assignment, or other disposition by the Subscriber; (b) to make an exemption from
registration available for any such offer, sale, transfer, assignment, or other
disposition by the Subscriber; or (c) to obtain any opinion of counsel with respect to
any such offer, sale, transfer, assignment, or other disposition.
(xix) If an individual, the Subscriber is at least twenty -one (21) years of age.
(xx) The Subscriber is a resident of the state listed in the primary residence address of the
Subscriber set forth above.
(xxi) If the Subscriber is a corporation, partnership, trust or other entity, it is duly
organized, validly existing and in good standing under the laws of the jurisdiction in
which it is organized; it is authorized and qualified to become a limited partner in,
and authorized to make its capital contributions to, the Fund and otherwise to
comply with its obligations under the Partnership Agreement; the Subscriber has not
been formed, reformed or recapitalized for the specific purpose of purchasing the
Interest; the person signing this Subscription Agreement on behalf of such entity has
been duly authorized by such entity to do so; and this Subscription Agreement has
been duly executed and delivered on behalf of the Subscriber as a deed and is the
valid and binding agreement of the Subscriber, enforceable against the Subscriber in
accordance with its terms. In addition, such Subscriber will, upon request of the
General Partner, deliver any documents, including an opinion of counsel, evidencing
the existence of the Subscriber, the legality of an investment in the Fund and the
authority of the person executing this Subscription Agreement on behalf of the
Subscriber which may be requested by the General Partner.
The information provided to the Fund by the Subscriber as to the Subscriber is true
and correct as of the date hereof, and the Subscriber agrees to advise the Fund prior
to its acceptance of the subscription contained in this Subscription Agreement of any
material change in any such information.
At the request of the Fund, each of the undersigned will execute such other
instruments and documents as may be reasonably required in connection with the
purchase of the Interest.
Unless required by law, the undersigned shall not disclose, and shall maintain
confidential any non - public information related to the Fund, provided that the
undersigned may disclose such information to any of its advisors, attorneys and
accountants if such advisor, attorney and /or accountant shall have agreed to be
bound by this provision.
The Subscriber understands and acknowledges that the law firm of Bradley Arant
Boult Cummings LLP is representing the Fund in connection with the sale of the
Interest to the Subscriber and that Bradley Arant Boult Cummings LLP is not, nor is
any other law firm retained by the Fund, representing the Subscriber or acting as a
broker, dealer, or agent in connection with this transaction.
(xxvi) The Subscriber is not relying on the Fund with respect to the tax and other economic
considerations of an investment in the Interest and the Subscriber has relied on the
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1/2457657.2
advice of, or has consulted with, the Subscriber's own legal, tax and other advisors.
The Subscriber acknowledges that she, he or it understands that anticipated tax
benefits may not be available and, further, may be adversely affected through
adoption of new laws or regulations or amendments to existing laws or regulations.
The Subscriber acknowledges and agrees that the Fund is providing no warranty or
assurance regarding the ultimate availability of any tax benefits to the Subscriber by
reason of the Subscriber's investment in the Fund.
The Subscriber agrees to provide the Fund with: (i) a valid and duly executed
Internal Revenue Service Form W -9 or Form W -8BEN (or other Form W -8), as
appropriate, upon the Subscriber's admission as a limited partner to the partnership
(as set forth in the Partnership Agreement) and promptly upon a subsequent
reasonable request by the Fund or the General Partner; (ii) a valid and duly executed
Internal Revenue Service Form W -9 or Form W -8BEN (or other Form W -8), as
appropriate, thirty (30) days prior to the end of each third taxable year thereafter that
the Subscriber owns an Interest; and (iii) prompt notice upon any change in the
information provided on such form.
(xxviii) The Subscriber understands that information relating to the Subscriber shall appear
on the financial statements and other records of the Fund. The Subscriber
acknowledges and agrees that other Partners may receive such information as
permitted by the Partnership Agreement or as required by applicable laws and may
share such information with their advisors and other parties.
The Subscriber authorizes and consents to the General Partner, on behalf of the
Fund, releasing confidential information about the Subscriber and, if applicable, any
Underlying Beneficial Owner(s), to the appropriate governmental or regulatory
authorities if the General Partner, in its sole discretion, determines that it is in the
best interests of the Fund in light of applicable statutes, regulations and conventions.
Within ten (10) days after receipt of a written request therefore from the General
Partner or the Fund, the Subscriber agrees to provide such information and to
execute and deliver such documents as the Fund or the General Partner may deem
reasonably necessary to comply with any and all laws and ordinances to which the
Fund is or may be subject.
The undersigned, if executing this Subscription Agreement in a representative or
fiduciary capacity, has full power and authority to execute and deliver this
Subscription Agreement in such capacity and on behalf of the subscribing
individual, ward, partnership, trust, estate, corporation, limited liability company, or
other entity for whom the undersigned is executing this Subscription Agreement,
and such individual, ward, partnership, trust, estate, corporation, or other entity has
full right and power to perform pursuant to this Subscription Agreement and make
an investment in the Interest.
The Subscriber agrees that the acknowledgements, representations, warranties,
covenants and agreements of the Subscriber set forth in this Subscription Agreement
shall survive the execution and delivery of this Subscription Agreement and the
consummation of any subscription for the Interest.
F. Representations, Warranties and Covenants (Plan Investors). If the undersigned is an
employee benefit plan subject to Title I of the Employee Retirement Income Security Act of 1974, as
1/2457657.2
amended ( "ERISA "), or Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code ")(a
"Plan "), is using the assets of a Plan or is an entity whose underlying assets include Plan assets by reason of a
Plan's investment in the entity, the fiduciary executing this Subscription Agreement on behalf of the Plan
(the "Fiduciary ") represents and warrants that:
(i) the Fiduciary has considered the following with respect to the Plan's investment in the
Interest and has determined that, in view of such considerations, the purchase of the Interest
is consistent with the Fiduciary's responsibilities under ERISA or other laws applicable to
the Plan:
(a) the role such investment or investment course of action plays in that portion of the
Plan's portfolio that the Fiduciary manages;
(b) whether the investment or investment course of action is reasonably designed as part
of that portion of the portfolio managed by the Fiduciary to further the purposes of
the Plan, taking into account both the risk of loss and the opportunity for gain that
could result therefrom;
(c) the composition of that portion of the Plan portfolio that the Fiduciary manages with
regard to diversification;
(d) the liquidity and current rate of return of that portion of the Plan portfolio managed
by the Fiduciary relative to the anticipated cash flow requirements of the Plan;
(e) the projected return of that portion of the Plan portfolio managed by the Fiduciary
relative to the funding objectives of the Plan;
(f) whether an investment in the Interest is permissible under the documents governing
the Plan and the Fiduciary; and
(g)
that there are substantial risks of loss for the Plan associated with an investment in
the Interest;
(ii) the Fiduciary is (a) responsible for the decision to invest Plan assets in the Interest; (b)
independent of the Fund, the General Partner and any of their respective affiliates; and (c)
qualified to make such investment decision for the Plan;
(iii) the Fiduciary has delivered to the Fund, and from time to time hereafter will deliver to the
Fund, in writing, all of the information which the Fund may request in order to avoid
violations of any provision of ERISA or any other laws applicable to the Fiduciary or the
Fund, and promptly will notify the Fund, in writing, or any change in the information so
furnished; and
(iv) the Fiduciary (a)(i) has not solicited and has not received from the Fund, the General Partner
or any of their respective affiliates any evaluation or other investment advice on any basis in
respect of the advisability of this or any other investment in light of the assets, cash needs,
investment policies or strategy, overall portfolio composition or diversification of the Plan
assets, and (ii) is not relying and has not relied on the Fund, the General Partner, or any of
their respective affiliates for any such advice, and (b) represents that (i) based upon the
assumption that the assets of the Fund will not constitute "plan assets" for purposes of
ERISA, neither the execution and delivery of this Subscription Agreement norr the
subscription for the Interest by the Fiduciary on behalf of the Plan will constitute a non-
12
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exempt prohibited transaction between the Plan and any party under Section 406 of ERISA
or Section 4975 of the Code, and (ii) to the Fiduciary's best knowledge, neither the Fund, the
General Partner nor any of their respective affiliates is a "party in interest ", within the
meaning of Section 3(14) of ERISA, or a "disqualified person ", within the meaning of
Section 4975(e)(2) of the Code, with respect to the Plan.
G. Status as a Limited Partner. The Subscriber agrees that if the subscription contained in
this Subscription Agreement is accepted, the Subscriber shall (i) become a Limited Partner in the Fund, (ii)
execute and deliver a copy of the Partnership Agreement or the Joinder Agreement attached hereto as Exhibit
C, or adhere to the Partnership Agreement by entering into this Subscription Agreement (as applicable), (iii)
be bound by the terms of the Fund's Partnership Agreement and (iv) perform all obligations imposed by the
Partnership Agreement upon a Limited Partner with respect to the Interest.
H. Restrictions on Assignment or Transfer of Interest. The Subscriber hereby acknowledges
and agrees that the Subscriber will not `offer, sell, transfer, assign, pledge, or otherwise dispose of the
Interest, in whole or in part, or any interest in such Interest, except in strict compliance with the terms and
conditions set forth in the Partnership Agreement.
I. Irrevocability; Binding Effect. The Subscriber hereby acknowledges and agrees that the
subscription contained in this Subscription Agreement is irrevocable, that, except as required by law, the
Subscriber is not entitled to cancel, terminate, or revoke this Subscription Agreement or any provisions
hereof, and that. this Subscription Agreement and such other agreements shall survive the bankruptcy or
dissolution of the Subscriber and shall be binding upon and inure to the benefits of the parties and their
successors and permitted assigns.
J. Power of Attorney. Subject only to the acceptance of this Subscription Agreement by the
General Partner, the Subscriber hereby (i) joins in and agrees to be bound by the Partnership Agreement as a
limited partner; (ii) pursuant to the terms of the Partnership Agreement, designates and appoints the General
Partner its true and lawful attorney, in its name, place, and stead to make, execute, sign, and file (x) the
Fund's Certificate of Limited Partnership and any amendment thereto and such other instruments,
documents, or certificates that may from time to time be required of the Fund by the laws of the United
States of America, the laws of the state of the Fund's registration, or any other state in which the Fund shall
conduct its affairs in order to qualify or otherwise enable the Fund to conduct its affairs in such jurisdictions,
and (y) such instruments and documents necessary to effect the transactions contemplated by the Partnership
Agreement. Such attorney is not hereby granted any authority on behalf of the Subscriber, as a limited
partner, to amend the Partnership Agreement except that as attorney in fact for a limited partner, the General
Partner will have the authority to execute any duly adopted amendment to the Partnership Agreement. It is
expressly intended by each Subscriber that the power of attorney granted by this paragraph is coupled with
an interest and is intended to secure the Limited Partner's obligations under the Agreement and /or a relevant
interest in property, shall be irrevocable, and shall survive and not be affected by the subsequent disability or
incapacity of such Subscriber (or if such Subscriber is a corporation, partnership, trust, association, limited
liability company or other legal entity, by the cancellation, dissolution or termination thereof and shall extend
to such subscriber's successors and assigns); provided, however, that this power of attorney granted by each
Subscriber shall expire as to such Subscriber immediately after the cancellation of the Fund or the complete
withdrawal of such Subscriber as a partner of the Fund. This power of attorney may be exercised by such
attorney -in -fact and agent for all Subscribers (or any of them) by a single signature of the General Partner
with or without listing all Subscribers executing an instrument.
K. Indemnification. The Subscriber agrees to indemnify and hold harmless the Fund and its
members, managers, officers, employees, agents, attorneys, accountants, and affiliates against any and all
loss, liability, claim, damage, and expense whatsoever (including, but not limited to, any and all attorney's
fees and other expenses reasonably incurred in investigating, preparing, or defending against any litigation
13
1/2457657.2
commenced or threatened or any claim whatsoever) due to, arising out of or based upon any breach of any
representation, warranty, covenant or agreement of the Subscriber contained in this Subscription Agreement
or any failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein or
in any other document furnished by the Subscriber to any of the foregoing in connection with the transaction
contemplated by this Subscription Agreement.
L. Modification. Neither this Subscription Agreement nor any provision hereof shall be
waived, modified, discharged, or terminated except by an instrument in writing signed by the party against
whom any such waiver, modification, discharge, or termination is sought.
M. Notices. Any notice or other communication required or permitted to be given hereunder
shall be in writing and shall be sent by certified mail, return receipt requested; by facsimile; by e -mail or
delivered against receipt to the party to whom it is to be given (i) if to the Fund, at the address, facsimile
number, or e -mail address set forth above or as otherwise provided, or (ii) if to the Subscriber, at the
correspondence address, facsimile number, or e-mail address set forth above (or, in either case, to such other
address as the party shall have furnished in writing in accordance with the provisions of this Section M).
Any notice or other communication given by certified mail shall be deemed given at the time of certification
thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt
thereof.
N. Assignment. This Subscription Agreement and the rights and obligations hereunder may
not be assigned or delegated by the Subscriber without the prior written consent of the Fund, and any attempt
to do so shall be void and of no effect.
0. Applicable Law. This Subscription Agreement shall be construed in accordance with and
shall be governed by the laws of the State of Delaware, without regard to its conflicts of laws principles that
would cause the law of any other State to be applied to this Subscription Agreement.
P. Counterparts. This Subscription Agreement may be executed by facsimile, 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 parties.
Q. Entire Agreement. This Subscription Agreement and, if the subscription is accepted by the
General Partner, the Partnership Agreement constitute the entire agreement among the parties hereto with
respect to their subject matter and supersedes all prior agreements, whether written or oral, with respect to
that subject matter.
[Signature Page to Follow]
14
1/2457657 2
IN WITNESS WHEREOF, the undersigned have executed this Subscription Agreement, or
caused this Subscription Agreement to be executed by its duly authorized representative, effective as of
the _14_ day of _July , 2014.
THE SUBSCRIBER:
BOARD OF TRUSTEES OF THE EMPLOYEE'S
PENSION PLAN OF THE CITY OF CLEARWATER,
FLORIDA
By: — CtQ.la t4 Cr C t0 f
Ap.r
George N. Cretekos
Chairpers n
art aufman
ension • rney
ACCEPTED AND AGREED:
MOLPUS WOODLANDS FUND IV, L.P.
By: Molpus Woodlands Fund IV -GP, LLC
Its: General Partner
By: Molpus Woodlands Group, LLC
Its: Manager
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Attest:
Rosemarie Call
City Clerk
By:
Name:
Its:
Effective as of: , 2014
15
EXHIBIT A
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT
OF
MOLPUS WOODLANDS FUND IV, L.P.
(See attached.)
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EXHIBIT B
Section 2(a)(51)(C) of the Investment Company Act:
(C) The term "qualified purchaser" does not include a company that, but for the exceptions provided
for in paragraph (1) or (7) of Section 3(c), would be an investment company (hereafter in this paragraph
referred to as an "excepted investment company "), unless all beneficial owners of its outstanding
securities (other than short-term paper), determined in accordance with Section 3(c)(1)(A), that acquired
such securities on or before April 30, 1996 (hereafter in this paragraph referred to as "pre- amendment
beneficial owners "), and all pre- amendment beneficial owners of the outstanding securities (other than
short-term paper) or any excepted investment company that, directly or indirectly, owns any outstanding
securities of such excepted investment company, have consented to its treatment as a qualified purchaser.
Unanimous consent of all trustees, directors, or general partners of a company or trust referred to in
clause (ii) or (iii) of subparagraph (A) shall constitute consent for purposes of this subparagraph.
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Rule 2a51 -2. Definitions of Beneficial Owner For Certain Purposes Under Sections 2(a)(51) and
3(c)(7) and Determining Indirect Ownership Interests.
(a) Beneficial Ownership: General. Except as set forth in this section, for purposes of Sections
2(a)(51)(C) and 3(c)(7)(B)(ii) of the Act, the beneficial owners of securities of an excepted investment
company (as defined in Section 2(a)(51)(C) of the Act) shall be determined in accordance with Section
3(c)(1) of the. Act.
(b) Beneficial Ownership: Grandfather Provision. For purposes of Section 3(c)(7)(B)(ii) of the Act,
securities of an issuer beneficially owned by a company (without giving effect to Section 3(c)(1)(A) of
the Act ( "owning company ") shall be deemed to be beneficially owned by one person unless:
(1) The owning company is an investment company or an excepted investment company;
(2) The owning company, directly or indirectly, controls, is controlled by or is under common control
with the issuer; and
(3) On October 11, 1996, under Section 3(c)(1)(A) of the Act as then in effect, the voting securities
of the issuer were deemed to be beneficially owned by the holders of the owning company's outstanding
securities (other than short-term paper), in which case, such holders shall be deemed to be beneficial
owners of the issuer's outstanding voting securities.
(c) Beneficial Ownership: Consent Provision. For purposes of Section 2(a)(51)(C) of the Act, securities
of an excepted investment company beneficially owned by a company (without giving effect to Section
3(c)(1)(A) of the Act ( "owning company ") shall be deemed to be beneficially owned by one person
unless:
(1) The owning company is an excepted investment company;
(2) The owning company directly or indirectly controls, is controlled by, or is under common control
with, the excepted investment company or the company with respect to which the excepted investment
company is, or will be, a qualified purchaser; and
(3) On April 30, 1996, under Section 3(c)(1)(A) of the Act as then in effect, the voting securities of
the excepted investment company were deemed to be beneficially owned by the holders of the owning
company's outstanding securities (other than short-term paper), in which case the holders of such
excepted company's securities shall be deemed to be beneficial owners of the excepted investment
company's outstanding voting securities.
(d) Indirect Ownership: Consent Provision. For purposes of Section 2(a)(51)(C) of the Act, an
excepted investment company shall not be deemed to indirectly own the securities of an excepted
investment company seeking a consent to be treated as a qualified purchaser ( "qualified purchaser
company ") unless such excepted investment company, directly or indirectly, controls, is controlled by or
is under common control with, the qualified purchaser company or a company with respect to which the
qualified purchaser company is or will be a qualified purchaser.
(e) Required Consent: Consent Provision. For purposes of Section 2(a)(51)(C) of the Act, the consent
of the beneficial owners of an excepted investment company ( "owning company ") that beneficially owns
securities of an excepted investment company that is seeking the consents required by Section 2(a)(51)(C)
( "consent company ") shall not be required unless the owning company directly or indirectly controls, is
1/2457657.2
controlled by, or is under common control with, the consent company or the company with respect to
which the consent company is, or will be, a qualified purchaser.
Notes to Rule 2a51 -2.
1. On both April 30, 1996 and October 11, 1996, Section 3(c)(1)(A) of the Act as then in effect
provided that: (A) Beneficial ownership, by a company shall be deemed to be beneficial ownership by
one person, except that, if the company owns 10 per centum or more of the outstanding voting
securities of the issuer, the beneficial ownership shall be deemed to be that of the holders of such
company's outstanding securities (other than short-term paper) unless, as of the date of the most recent
acquisition by such company of .securities of that issuer, the value of all securities owned by such
company of all issuers which are or would, but for the exception set forth in this subparagraph, be
excluded from the definition, of investment company solely by this paragraph, does not exceed 10 per
centum of the value of the company's total assets. Such issuer nonetheless is deemed to be an
investment company for purposes of Section 12(d)(1).
2. Issuers seeking the consent required by Section 2(a)(51)(C) of the Act should note that Section
2(a)(51)(C) requires an issuer to obtain the consent of the beneficial owners of its securities and the
beneficial owners of securities of any "excepted investment company" that directly or indirectly owns
the securities of the issuer. Except as set forth in paragraphs (d) (with respect to indirect owners) and
(e) (with respect to direct owners) of this section, nothing in this section is designed to limit this
consent requirement.
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EXHIBIT C
Joinder Agreement
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