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Stock Subscription Agreement

This Stock Subscription Agreement template outlines the terms and conditions under which an investor subscribes to purchase shares in a company. It is used when a company issues new shares to raise capital.

Updated 15d ago
stock subscriptionequity fundingsharesinvestmentagreementSMESouthern Africa

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Stock Subscription Agreement

Stock Subscription Agreement

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

STOCK SUBSCRIPTION AGREEMENT

This Stock Subscription Agreement (this "Agreement") is made and entered into as of {{effective_date}}, by and between:

{{company_name}}, a company duly incorporated and existing under the laws of {{country_of_incorporation}}, with its registered office located at {{company_address}} (hereinafter referred to as the "Company"); and

{{subscriber_name}}, a [individual/entity type] residing at/with its registered office located at {{subscriber_address}} (hereinafter referred to as the "Subscriber").

The Company and the Subscriber are hereinafter collectively referred to as the "Parties" and individually as a "Party".

RECITALS

WHEREAS, the Company desires to issue, and the Subscriber desires to subscribe for and purchase, certain shares of the Company's capital stock, upon the terms and conditions hereinafter set forth.

WHEREAS, the Subscriber acknowledges that this investment involves a high degree of risk and that the Subscriber is able to bear the economic risk of this investment.

SUBSCRIPTION FOR SHARES

Subject to the terms and conditions of this Agreement, the Subscriber hereby irrevocably subscribes for and agrees to purchase {{number_of_shares}} ({{number_of_shares_words}}) [Ordinary/Preference] Shares of the Company (the "Shares") at a subscription price of {{price_per_share}} ({{price_per_share_words}}) per Share, for a total aggregate subscription price of {{total_subscription_price}} ({{total_subscription_price_words}}) (the "Subscription Price").

PAYMENT OF SUBSCRIPTION PRICE

The Subscriber shall pay the Subscription Price to the Company by way of [bank transfer/other method] to the Company's designated bank account, details of which are: [Bank Name: {{bank_name}}, Account Name: {{account_name}}, Account Number: {{account_number}}, Swift Code: {{swift_code}}], on or before {{payment_due_date}}.

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby represents and warrants to the Subscriber that:

a) The Company is duly incorporated, validly existing and in good standing under the laws of {{country_of_incorporation}}.

b) The Company has the corporate power and authority to enter into and perform its obligations under this Agreement.

c) The Shares, when issued, will be duly authorised, validly issued, fully paid and non-assessable.

d) The execution and delivery of this Agreement and the issuance of the Shares will not violate any provision of the Company's constitutive documents or any agreement to which the Company is a party.

REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

The Subscriber hereby represents and warrants to the Company that:

a) The Subscriber has the full legal capacity, power and authority to enter into and perform its obligations under this Agreement.

b) The Subscriber acknowledges that the Shares have not been registered under any securities laws and are being acquired for investment purposes only and not with a view to resale or distribution.

c) The Subscriber has had an opportunity to ask questions of and receive answers from the Company concerning the terms and conditions of this investment and to obtain any additional information necessary to verify the accuracy of the information furnished to the Subscriber.

d) The Subscriber is an experienced investor in private equity investments and is capable of evaluating the merits and risks of an investment in the Company.

e) The Subscriber has sufficient financial resources to bear the risks of this investment.

GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_country}}.

The Parties hereby irrevocably submit to the exclusive jurisdiction of the courts of {{jurisdiction_country}} for the purpose of hearing and determining any dispute arising out of or in connection with this Agreement.

ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by both Parties.

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Stock Subscription Agreement as of the Effective Date first written above.

FOR AND ON BEHALF OF {{company_name}}:

_____________________________

Name: {{company_representative_name}}

Title: {{company_representative_title}}

Date: {{company_signature_date}}

FOR AND ON BEHALF OF {{subscriber_name}}:

_____________________________

Name: {{subscriber_representative_name}}

Title: {{subscriber_representative_title}} [if applicable, or 'Individual Subscriber']

Date: {{subscriber_signature_date}}

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