Arkansas Subscription Agreement: Explained Introduction: The Arkansas Subscription Agreement, also known as an investment agreement, serves as a legally binding contract between Charge. Com, Inc. ("Company") and a prospective investor, specifying the terms and conditions under which the investor agrees to purchase units consisting of common stock and common stock warrant. This agreement outlines the investment structure and aims to protect the interests of both parties involved. Here, we will delve into the details of the Arkansas Subscription Agreement and its various types. 1. Common Stock and Common Stock Warrant: The key components of the Arkansas Subscription Agreement include the purchase of units comprising common stock and common stock warrant. Common stock represents ownership in the company, while the common stock warrant grants the investor the right to purchase additional shares at a predetermined price within a specified period. 2. Terms and Conditions: The agreement sets forth the terms and conditions governing the purchase. It covers the price per unit, the total investment amount, and the allocation of units to the investor. Details on payment methods, schedule, and any restrictions or limitations are typically included in this section. 3. Investor Representations and Warranties: To ensure the investor's eligibility and commitment, the agreement requires them to provide certain representations and warranties. These may include confirming their legal capacity, financial stability, compliance with securities laws, and acknowledgement of the risks associated with the investment. 4. Company Disclosures: The Company is obligated to disclose certain information to the investor, offering them full transparency. This may include financial statements, business plans, risks, and any other relevant information necessary for making an informed investment decision. 5. Use of Proceeds: The agreement outlines how the funds raised from the investor's purchase will be utilized by the Company. This is often detailed to ensure transparency and align the investor's expectations with the purpose of the investment. 6. Governing Law and Jurisdiction: To establish a legal framework, the agreement specifies that it is governed by the laws of Arkansas. It also outlines the jurisdiction in which any disputes will be resolved, typically specifying a particular court or arbitration process. Types of Arkansas Subscription Agreements: While the core elements remain consistent, there may be different types of Arkansas Subscription Agreements offered by Charge. Com, Inc. These variations cater to different investment structures or investor preferences, and may include: 1. Standard Arkansas Subscription Agreement: The standard agreement encompasses all the essential terms and conditions outlined above, without any specific modifications or additional provisions. 2. Preferred Stock Option Agreement: If the Company issues preferred stock as units instead of common stock, a Preferred Stock Option Agreement variation may be implemented. This agreement would specify the rights and preferences associated with the preferred stock, such as dividend preferences, liquidation preferences, and conversion rights. 3. Installment Payment Agreement: In certain cases, the investor may opt to make the investment in installments instead of a lump sum. In such instances, an Installment Payment Agreement can be structured, highlighting the installment schedule and related terms. Conclusion: The Arkansas Subscription Agreement between Charge. Com, Inc. and a prospective investor serves as a crucial document, defining the terms and conditions for the purchase of units consisting of common stock and common stock warrant. It establishes a legal framework, mitigates risks, and provides essential disclosures. By offering different types of Arkansas Subscription Agreements, tailored to different investment structures, the Company accommodates various investor preferences, enhancing their ability to effectively negotiate and structure the investment.