Subscription Agreement

A subscription agreement is a formal agreement between a company and an investor to buy shares of a company at an agreed-upon price. The subscription agreement contains all the required details. It is used to keep track of outstanding shares.

Private companies tend to use subscription agreements if they want to raise capital from investors that are private. This can be done by selling either shares or the company's ownership without needing to register with the SEC.Having a subscription agreement will help solidify a promise into a fixed transaction.

What Is Subscribed? Subscribed refers to newly issued securities that an investor has agreed to, or stated his or her intent to, buy prior to the official issue date. When investors subscribe, they expect to own the designated number of shares once the offering is complete.

A subscription agreement is a formal agreement between a company and an investor to buy shares of a company at an agreed-upon price. The subscription agreement contains all the required details.

The core elements of a Subscription Agreement include Issued Shares, Price Per Share, Payment, Securities Exemption, Evaluation of Risk, and Independent Legal Advice. Other additional clauses can include No Brokers, No General Solicitation, Dispute Resolution, Governing Law, and Further Assurances.

Equity Subscription Agreement means any agreement that may be entered into in connection with the Financing Agreements or otherwise, under which a Developer is to subscribe for additional shares to contribute additional capital to the Project Company, or to lend or otherwise advance funds to the Project Company.

Subscriber agreement means an electronic signature agreement signed by an individual with a handwritten signature. This agreement must be stored until five years after the associated electronic signature device has been deactivated.