This is a Short-Form Subscription agreement. The investor agrees to buy a certain number of shares at a specified price from the issuer. The completed form is accompanied by a check to facilitate the purchase of the shares of stock.
The Washington Short-Form Subscription Agreement is a legal document utilized in the state of Washington to outline the terms and conditions of a subscription agreement between a company (the issuer) and an investor or subscriber. This agreement is commonly used in situations where the issuer seeks to raise capital by offering and selling securities to investors. The Washington Short-Form Subscription Agreement typically includes several key elements: 1. Parties: The agreement will identify the issuer and the investor, including their legal names and addresses. 2. Securities Offered: This section specifies the type of securities being offered for subscription, which can vary but commonly includes shares of stock or membership interests in a limited liability company (LLC). 3. Purchase Price: The agreement will state the price at which the investor agrees to purchase the securities. It may establish a fixed price per share, a formula-based price, or a negotiated price. 4. Representations and Warranties: The investor will make various representations and warranties to the issuer, ensuring that they have the legal capacity to enter into the agreement and that they have received all necessary information about the investment. 5. Risk Factors: This section outlines the potential risks associated with the investment. It may cover factors like market or economic volatility, regulatory changes, and the specific risks inherent to the issuer's industry. 6. Subscription Process: The agreement will include details on how the investor can subscribe for the offered securities, including any necessary forms or documentation they must submit. 7. Governing Law and Venue: This clause determines that the agreement is subject to Washington state laws and specifies the appropriate jurisdiction for any legal disputes. Types of Washington Short-Form Subscription Agreements: 1. Washington Short-Form Subscription Agreement for Common Stock: This type of agreement specifically caters to the issuance and subscription of shares of common stock, which represents ownership in a corporation with voting rights and potential dividends. 2. Washington Short-Form Subscription Agreement for Preferred Stock: This version of the agreement is tailored to the sale of preferred stock, which grants shareholders certain preferences over common stockholders, such as priority dividend rights or liquidation preferences. 3. Washington Short-Form Subscription Agreement for LLC Membership Interests: This type of agreement focuses on the subscription and acquisition of membership interests in a limited liability company (LLC). It addresses the unique characteristics and rights associated with LLC ownership. It is essential to consult with a legal professional when drafting or executing a Washington Short-Form Subscription Agreement to ensure compliance with state and federal securities laws.
