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Investment Subscription Agreement template
Investment Subscription Agreement sample


What is Investment Subscription Agreement?

Investment Subscription Agreement An agreement for individuals or entities to subscribe to investment opportunities, specifying subscription terms, contributions, and investment-related details.



Sample template:



Investment Subscription Agreement

BETWEEN:

John Smith ("Subscriber")


AND:


ACME Tech Innovations, Inc., a United States corporation ("Company")



1. Subscription for Preferred Shares

1.1. Subscription and Purchase Price


The Company hereby offers to the Subscriber the opportunity to acquire preferred shares in the Company ("Preferred Shares"). The Subscriber hereby agrees to subscribe for and purchase such Preferred Shares, subject to the terms and conditions set forth in this Investment Subscription Agreement ("Agreement"). The purchase price for each Preferred Share shall be as determined by mutual agreement between the Company and Subscriber ("Purchase Price").



1.2. Subscription Commitment


The Subscriber hereby commits to investing an aggregate amount of US$________ ("Subscription Amount"), payable in accordance with the payment schedule set forth in Section 3. Upon the Company's receipt of the Subscription Amount in full, it shall allot and issue to the Subscriber the Preferred Shares corresponding to the Subscription Amount, as calculated based on the Purchase Price.



2. Representations and Warranties of the Subscriber

2.1. Authority and Capacity


The Subscriber represents and warrants to the Company that the Subscriber has the full legal capacity and authority to enter into and perform their obligations under this Agreement, and this Agreement constitutes a valid and binding obligation of the Subscriber, enforceable in accordance with its terms.



2.2. Investment Decision


The Subscriber acknowledges that it has reviewed the Company's business, prospects, financial condition, and technology, and has had the opportunity to ask questions of and receive information from the Company's representatives. The Subscriber further acknowledges that they are relying solely on their own independent assessment and judgment in deciding to enter into this Agreement and to make an investment in the Company, and not on any representations, warranties, or statements made by the Company, other than those expressly set forth in this Agreement.



2.3. Investment Risk


The Subscriber acknowledges that the investment in the Preferred Shares involves substantial risks, including, but not limited to, the possible loss of the entire Subscription Amount, and may not be a suitable investment for all investors. The Subscriber represents that it is an "accredited investor" as defined under the rules and regulations of the United States Securities and Exchange Commission, and that it has the financial ability to bear the economic risk of its investment in the Preferred Shares, including the potential loss of the entire Subscription Amount.



3. Payment of Subscription Amount

The Subscription Amount shall be paid by the Subscriber to the Company by wire transfer or other mutually acceptable means, in accordance with the following payment schedule:


3.1. Initial Payment: The Subscriber shall pay an amount equal to 50% of the Subscription Amount within five (5) business days after the effective date of this Agreement ("Effective Date").


3.2. Final Payment: The Subscriber shall pay the remaining 50% of the Subscription Amount within fifteen (15) business days after the Effective Date or such other date as may be agreed upon by the parties.



4. Rights and Obligations of Preferred Shareholders

4.1. Dividends


Subject to applicable laws and the Company's articles of incorporation, the holders of Preferred Shares shall be entitled to receive dividends, as and when declared by the Company's board of directors, in preference to the holders of common shares. The Preferred Shares shall have a cumulative and non-cumulative dividend preference, as determined by the Company's board of directors.



4.2. Liquidation Preference


Upon the liquidation, dissolution, or winding-up of the Company, the holders of Preferred Shares shall be entitled to receive, in preference to the holders of common shares, the Purchase Price per Preferred Share, plus any declared but unpaid dividends thereon.



4.3. Conversion Rights


The Preferred Shares shall be convertible, at any time and from time to time, at the option of the holder thereof, into fully paid and non-assessable common shares of the Company, at the conversion rate as determined by the Company's board of directors.



4.4. Voting Rights


The holders of Preferred Shares shall have the same voting rights as the holders of common shares on an as-converted basis, and each Preferred Share shall be entitled to one vote on each matter submitted to a vote of the shareholders of the Company.



5. Governing Law and Dispute Resolution

This Agreement shall be governed by and construed and enforced in accordance with the laws of the United States, without regard to its principles of conflicts of law. Any dispute, claim, or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation, or validity thereof shall be resolved by binding arbitration, administered by a recognized arbitration institution and conducted by a single arbitrator, in accordance with the applicable arbitration rules. The arbitration shall be held in a location mutually agreed upon by the parties, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.



6. Miscellaneous

6.1. Amendments


This Agreement may only be amended or modified by a written instrument executed by both parties hereto.



6.2. Entire Agreement


This Agreement, together with any schedules and exhibits hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, between the parties with respect to such subject matter.



IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written.

______________________


John Smith


Subscriber


______________________


ACME Tech Innovations, Inc.


By: __________________


Its: Authorized Signatory

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Main Sections of an Investment Subscription Agreement


In this Investment Subscription Agreement, you will see the following sections:

  1. Subscription for Preferred Shares
  2. Representations and Warranties of the Subscriber
  3. Payment of Subscription Amount
  4. Rights and Obligations of Preferred Shareholders
  5. Governing Law and Dispute Resolution
  6. Miscellaneous


About each Section - Analysis and Summary:

  1. Subscription for Preferred Shares : This section outlines the agreement between the Subscriber (John Smith) and the Company (ACME Tech Innovations, Inc.) for the purchase of preferred shares. The purchase price for each share will be determined by mutual agreement, and the Subscriber commits to investing a specific amount in the Company.

  2. Representations and Warranties of the Subscriber : This section contains statements made by the Subscriber to the Company, including their legal capacity to enter into the agreement, their independent assessment of the Company's business, and their acknowledgment of the investment risks involved. The Subscriber also confirms that they are an "accredited investor" as defined by the United States Securities and Exchange Commission.

  3. Payment of Subscription Amount : This section details the payment schedule for the Subscriber's investment. The Subscriber will pay 50% of the Subscription Amount within five business days after the agreement's effective date and the remaining 50% within fifteen business days after the effective date or another agreed-upon date.

  4. Rights and Obligations of Preferred Shareholders : This section explains the rights and obligations of the Preferred Shareholders, including their entitlement to dividends, liquidation preference, conversion rights, and voting rights. Preferred Shareholders have priority over common shareholders when it comes to dividends and liquidation proceeds. They can also convert their preferred shares into common shares and have voting rights on a one-share-one-vote basis.

  5. Governing Law and Dispute Resolution : This section states that the agreement will be governed by the laws of the United States and that any disputes will be resolved through binding arbitration. The arbitration will be conducted by a single arbitrator and held in a mutually agreed-upon location.

  6. Miscellaneous : This section covers various additional provisions, such as the requirement for written amendments to the agreement, the acknowledgment that this agreement constitutes the entire understanding between the parties, and the execution of the agreement by both parties.

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