[{"data":1,"prerenderedAt":484},["ShallowReactive",2],{"document-letter-examples-for-a-subscription-of-shares-D5163":3},{"document":4,"label":24,"preview":11,"thumb":25,"thumb600":26,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":27,"breadcrumb":31,"related":39,"customDescModule":184,"customdescription":6,"mdFm":185,"mdProseHtml":483},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":23},"[DATE] DELIVERED BY [SPECIFY] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: SUBSCRIPTION OF SHARES Dear [CONTACT NAME], The undersigned hereby subscribes to [NUMBER] Common Shares in the capital stock of [YOUR COMPANY NAME], for a total consideration of [AMOUNT]. The undersigned is expecting to receive a notice of acceptance of this subscription. The undersigned commits itself/himself/herself to pay the said amount by attaching hereto a check payable to [YOUR COMPANY NAME]. The undersigned further declares to have fully evaluated the risks and the potential associated with such an investment. Sincerely, [YOUR NAME] [YOUR TITLE] [YOUR PHONE NUMBER] [YOUREMAIL@YOURCOMPANY] [DATE] DELIVERED BY [SPECIFY] ",null,"Letter Examples for a Subscription of Shares","2",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/letter-examples-for-a-subscription-of-shares-D5163.png","https://templates.business-in-a-box.com/imgs/250px/5163.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5163.xml",{"title":15,"description":6},"letter examples for a subscription of shares",[17,20],{"label":18,"url":19},"Finance & Accounting","/templates/finance-accounting/",{"label":21,"url":22},"Buy & Sell Shares","/templates/buy-sell-shares/","letter examples for a subscription shares","Letter Examples for a Subscription of Shares 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Agreement","/template/exchange-of-shares-agreement-D330","https://templates.business-in-a-box.com/imgs/250px/330.png",{"label":73,"url":74,"thumb":75,"extension":10},"Sale of Shares Agreement","/template/sale-of-shares-agreement-D340","https://templates.business-in-a-box.com/imgs/250px/340.png",{"label":77,"url":78,"thumb":79,"extension":10},"Tender of Shares for Acquisition","/template/tender-of-shares-for-acquisition-D351","https://templates.business-in-a-box.com/imgs/250px/351.png",{"label":81,"url":82,"thumb":83,"extension":10},"Shares Capital Description Preferred Shares","/template/shares-capital-description-preferred-shares-D1017","https://templates.business-in-a-box.com/imgs/250px/1017.png",{"label":85,"url":86,"thumb":87,"extension":10},"Master Subscription Agreement","/template/master-subscription-agreement-D14010","https://templates.business-in-a-box.com/imgs/250px/14010.png",{"description":89,"descriptionCustom":6,"label":90,"pages":91,"size":9,"extension":10,"preview":92,"thumb":93,"svgFrame":94,"seoMetadata":95,"parents":97,"keywords":96,"url":103},"SHAREHOLDERS AGREEMENT This Shareholders Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [FIRST SHAREHOLDER NAME] (the \"First Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [SECOND SHAREHOLDER NAME] (the \"Second Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [THIRD SHAREHOLDER NAME] (the \"Third Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WITNESSETH: WHEREAS, the present distribution of shares of the Company is as follows: Name Number of Shares WHEREAS, in order to insure the harmonious and successful management and control of the Company, and to provide for an orderly and fair disposition of shares of common stock of the Company now or hereafter owned by any Shareholder; NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, and intending to be legally bound, the parties hereby agree as follows: Definitions and organisation of the company \"Offering Shareholder\" means any Shareholder, or his personal representatives, heirs, administrators, and executors, as the case may be, who pursuant to this Agreement must or does offer all or any of his Shares to the Company or the Continuing Shareholders. \"Continuing Shareholders\" means all Shareholders other than an Offering Shareholder. \"Shares\" means shares of Common Stock of the Company now or hereafter owned by any Shareholder. \"Buyer\" means the Company or those Continuing Shareholders who purchase an Offering Shareholder's Shares pursuant to this Agreement. \"Management Shareholder\" means First Shareholder, Second Shareholder and Third Shareholder. ORGANISATION OF THE COMPANY The affairs of the Company will be managed by a board of [NUMBER] directors unless changed by a unanimous Directors' Resolution. The present directors of the Company are [DIRECTORS' NAMES]. It is agreed that [SHAREHOLDERS' NAMES] shall each be entitled to elect one director to the board of directors of the Company so long as each is a Shareholder. Two (2) directors shall constitute a quorum for the transaction of any business at any meeting of the board of directors. At all meetings of the board of directors, every motion to be carried must receive a majority of the votes cast, subject to the provisions of subparagraphs 2.4 and 2.5. Unless otherwise agreed, board meetings will be held at the head office of the Company. In the event that a nominee to the Board of one of the Shareholders shall fail to vote and act as a director to carry out the provisions of this agreement, then the shareholders agree to exercise their right as shareholders of the Company and in accordance with the Articles of the Company to remove such nominee from the Board and to elect in the place or stead thereof such individual who will use his/her best efforts to carry out the provisions of this agreement but only in the event that the Shareholder whose nominee has been removed fails to appoint a successor within a period of fourteen days from the date such nominee has been removed. The election, appointment and determination of officers and the auditors and advisors of the Company, the defining of their duties and functions and the salaries and remuneration to be paid to them will be a function of the board of directors. Until changed by the board of directors, the Officers of the Company and their annual salaries shall be: Office Held: Director: [NAME] [SALARY] Secretary: [NAME] [SALARY] All direct out-of-pocket expenses will be reimbursed provided these falls within guidelines set out by the Board of Directors from time to time. Until otherwise agreed, each officer of the Company will commit to spending his/her full time on the affairs of the Company. Until changed by the board of directors, the auditors and advisors of the Company shall be: Auditor: Legal Advisors: There shall be kept, in such bank or banks (including trust companies) as may be determined by the board of directors, bank accounts of the Company in which shall be deposited all monies received by the Company in the course of carrying on business from time to time. All payments on account of the Company shall be made by cheques drawn on the bank account and all cheques, drafts or other instruments drawn and made for the purposes of the business of the Company shall be executed by such directors, officers or employees as may from time to time be authorized so to do by the board of directors. Subject to paragraph 2.6, all decisions relating to the management and control of the business of the Company shall be determined by the board of directors of the Company, provided always that the following matters shall be determined by a Special Directors' Resolution: any capital expenditures greater than xxxx; any lease commitments greater than xxxx; the acquisition of any business interests by the Company; the elections of officers of the Company; the payment of any cash dividends or stock dividends to Shareholders of the Company; the issuance of any debt obligations of the Company; the disposal of the whole or any part of the business, undertaking, or assets of the Company outside the normal course of business of the Company the transfer of any shares of the Company; changes or variations in the objects or powers of the Company; the liquidation or winding up of the Company; the approval of any contracts or transactions outside the normal course of business; the execution of any contract involving a consideration greater than xxxx within the normal course of business; the lending of money by the Company; the guarantee by the Company of the debts or obligations of any other person, firm or body corporate; any non-budgeted expenditures greater than xxxx; business plan and/or budgets. The following decisions shall be determined by a Unanimous Directors' Resolution: alterations, variations or changes to the authorized or issued capital of the Company; the salaries and bonuses of officers and directors of the Company; the issue, redemption or purchase of any Shares; and changes in the number of directors of the Company The Shareholders may pledge any of their Shares as security for any borrowings by them provided the pledgee executes an agreement, in writing, providing that the pledgee shall be subject to all of the terms of this Agreement. The board of directors shall meet at least four times during each fiscal year of the Company. Any director can call a meeting provided 10 days notice is given. Notice may be waived. During the first year from the date of this agreement, the board of directors shall meet on a monthly basis. Directors may elect to attend a board meeting by telephone conference call. Each Shareholder shall, for so long as s/he is the owner of shares of the Company devote such of his/her business, time and energy as may be reasonably required to carry on the business of the Company and the Shareholder shall use his/her best efforts, skill and abilities to promote the interests of the Company. Each Shareholder agrees that he/she will not engage, without the consent of the other Shareholders, in a business which is directly competitive to that of the Company. Purchase for Investment","Shareholders Agreement","16","https://templates.business-in-a-box.com/imgs/1000px/shareholders-agreement-D1016.png","https://templates.business-in-a-box.com/imgs/250px/1016.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1016.xml",{"title":96,"description":6},"shareholders agreement",[98,100],{"label":34,"url":99},"business-legal-agreements",{"label":101,"url":102},"Incorporation Agreements","incorporation-agreement","/template/shareholders-agreement-D1016",{"description":105,"descriptionCustom":6,"label":106,"pages":107,"size":9,"extension":10,"preview":108,"thumb":109,"svgFrame":110,"seoMetadata":111,"parents":113,"keywords":112,"url":120},"STOCK TRANSFER AGREEMENT This Stock Transfer Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Transferor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the \"Transferee\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS: 1. The undersigned is the registered and beneficial owner of [NUMBER] Class [SPECIFY] Shares in the capital stock of [COMPANY NAME] Corporation (\"[COMPANY NAME]\"); 2. The undersigned wishes to sell and transfer the said Shares to [COMPANY NAME] (the \"Transferee\"); NOW THEREFORE, FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto the Transferee [NUMBER] Class [SPECIFY] Shares of [COMPANY NAME] registered in the name of the undersigned on the books of [COMPANY NAME]. IT IS HEREBY AGREED THAT: TRANSFER OF SHARES Sale and Transfer: The Transferor agrees to sell, assign, and transfer to the Transferee, and the Transferee agrees to purchase from the Transferor, the Shares for the total purchase price of [PURCHASE PRICE] (the \"Purchase Price\"). Delivery of Shares: Upon execution of this Agreement and receipt of the Purchase Price, the Transferor shall deliver to the Transferee the share certificate(s) representing the Shares, duly endorsed for transfer or accompanied by duly executed stock powers, and any other documents necessary to transfer ownership of the Shares to the Transferee. PURCHASE PRICE 2.1 Payment: The Transferee shall pay the Purchase Price to the Transferor in [SPECIFY FORM OF PAYMENT, e.g., cash, check, bank transfer], on or before [CLOSING DATE]. 2.2 Adjustment: There shall be no adjustment to the Purchase Price for any dividends declared or paid on the Shares after the date of this Agreement and before the Closing Date. REPRESENTATIONS AND WARRANTIES 3.1 Transferor's Representations: The Transferor represents and warrants that: a) The Transferor is the sole legal and beneficial owner of the Shares. b) The Shares are free and clear of all liens, claims, and encumbrances. c) The Transferor has full power and authority to enter into this Agreement and to transfer the Shares to the Transferee. 3.2 Transferee's Representations: The Transferee represents and warrants that: a) The Transferee has full power and authority to enter into this Agreement and to purchase the Shares. b) The Transferee is acquiring the Shares for investment purposes and not with a view to or for sale in connection with any distribution thereof. CONDITIONS PRECEDENT 4.1 The obligations of the Transferor and the Transferee under this Agreement are subject to the following conditions: a) Compliance with all applicable laws and regulations relating to the transfer of the Shares. b) Approval by the Company's Board of Directors or any other necessary corporate body, if required.","Stock Transfer Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/stock-transfer-agreement-D14069.png","https://templates.business-in-a-box.com/imgs/250px/14069.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#14069.xml",{"title":112,"description":6},"stock transfer agreement",[114,117],{"label":115,"url":116},"Business Plan Kit","business-plan-kit",{"label":118,"url":119},"Administration","business-administration","/template/stock-transfer-agreement-D14069",{"description":122,"descriptionCustom":6,"label":123,"pages":124,"size":9,"extension":10,"preview":125,"thumb":126,"svgFrame":127,"seoMetadata":128,"parents":130,"keywords":133,"url":134},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: LETTER OF INTENT-ACQUISITION OF BUSINESS Dear [CONTACT NAME]: This letter (\"Letter of Intent\") sets forth the basic preliminary terms between the Buyer or his nominee and yourselves regarding the purchase of the [SPECIFY] business (the \"Business\") carried on by yourselves. Except as specifically set forth herein, this Letter of Intent shall not constitute an agreement between the parties and no agreement shall be deemed to exist until execution of a definitive purchase agreement. It is proposed that Buyer will acquire certain assets of the Business which Buyer believes to be necessary to the future of the Business, including the warehouse in [CITY/STATE] in which [COMPANY NAME] the Company has invested [AMOUNT] in cash and which has been financed by a mortgage loan of approximately [AMOUNT] granted by the [SPECIFY COMPANY] [CITY/STATE]. Buyer understands that the said warehouse has no other charges or liabilities affecting it other than the said mortgage loan. Buyer may either purchase the warehouse outright or enter into a lease-purchase or instalment transfer of ownership which is satisfactory to both parties. The gross purchase price for the said warehouse will be [AMOUNT]. Buyer may purchase or lease barrels and other equipment currently owned by the Company which are necessary to operate the Business, on a cash or instalment basis agreeable to both parties. The specific assets to be purchased and the amounts to be paid by Buyer in connection with this transaction remain to be negotiated by the parties. This Letter of Intent also evidences the intentions of the parties with respect to the following agreements: Buyer will enter into a [NUMBER]-year employment agreement with [COMPANY NAME], providing for the Company will be responsible for the purchase of [SPECIFY] for Buyer. The agreement will contain the customary terms and conditions found in employment agreements in similar transactions and will provide for the usual non-competition and non-solicitation covenants to be entered into by the Company in favour of Buyer. It is expressly understood that if the contemplated transaction is consummated, the aggregate amount of commission paid or payable to yourselves (net of reasonable expenses acceptable to Buyer) in respect of all purchases of [SPECIFY] made through you from the date of this Letter of Intent to the date of closing, with the exception of commissions earned on the [NUMBER] truckloads of [SPECIFY] to be delivered to Buyer during the week of [DATE] to [DATE], will be applied against remuneration payable to the Company in the first year of his employment agreement. If the contemplated transaction is not consummated, all such commissions paid or payable will be treated as commissions. Buyer will enter into a [NUMBER]-year employment agreement with [EMPLOYEE NAME], providing for the payment of a gross base salary of [ANNUAL SALARY] per year, to be paid weekly, subject to annual review. [EMPLOYEE NAME] will be President of the Business and the employment agreement will provide for health benefits, automobile, expenses and bonus arrangements","Letter of Intent_Acquisition of Business","3","https://templates.business-in-a-box.com/imgs/1000px/letter-of-intent_acquisition-of-business-D5197.png","https://templates.business-in-a-box.com/imgs/250px/5197.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5197.xml",{"title":129,"description":6},"letter of intent_acquisition of business",[131,132],{"label":34,"url":99},{"label":34,"url":99},"letter intent_acquisition business","/template/letter-of-intent_acquisition-of-business-D5197",{"description":136,"descriptionCustom":6,"label":137,"pages":124,"size":9,"extension":10,"preview":138,"thumb":139,"svgFrame":140,"seoMetadata":141,"parents":143,"keywords":142,"url":148},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":142,"description":6},"non disclosure agreement nda",[144,145],{"label":34,"url":99},{"label":146,"url":147},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":150,"descriptionCustom":6,"label":151,"pages":124,"size":152,"extension":10,"preview":153,"thumb":154,"svgFrame":155,"seoMetadata":156,"parents":157,"keywords":163,"url":164},"TERM SHEET Issue: [Venture Capital FIRM] (\"VC\") and/or any member of its corporate group (\"the VC Group\") will purchase up to [AMOUNT] Series A Convertible Preferred Stock (\"Series A\") newly issued by [YOUR COMPANY NAME] (the \"Company\") at a price per share of [PRICE] (the \"Purchase Price\"). In addition, other investors shall purchase at least [AMOUNT] but not more than [AMOUNT] of newly issued Series A at the Purchase Price. The shares of Series A will be convertible at any time at the option of the holder into common shares of the Company (\"Common Stock\") on a one-for-one basis, adjusted for future share splits. The Purchase Price equates to a pre-money valuation of [VALUATION]. The calculation is based on [NUMBER] fully diluted shares of Common Stock. If the number of shares issued, or stock awards/options authorized increases before the closing the price per share for Series A Convertible Preferred Stock shall be reduced so that the pre-money valuation is unchanged. The Series A Convertible Preferred Stock shall be referred to herein as the \"Preferred Stock.\" Dividend: The Preferred Stock is entitled to an annual [AMOUNT] per share dividend, payable when and if declared by the Board of Directors, but prior to any payment on Common Stock; dividends are not cumulative. Liquidation Preference: The Series A will have a liquidation preference so that proceeds on a merger, sale or liquidation (including non-cumulative dividends) will first be paid to the Series A and will include a [%] per annum compounding guaranteed return calculated on the total amount invested. Upon completion of an additional round of funding of at least [AMOUNT] the compounding guaranteed return feature will expire. The liquidation preference will cease to operate if the proceeds due to Series A, on a merger, sale or liquidation on an as-converted basis, exceed the proceeds that would be due under the liquidation preference. Use of Proceeds: The funds raised by Series A will be used principally for general working capital purposes. Voting Rights: The holders of the Series A shall have the right to vote with the Common Stock on an as-if-converted basis. Redemption: If not previously converted, the Series A is to be redeemed in three equal successive annual installments beginning [DATE]. Redemption will be at the purchase price plus a [%] per annum cumulative guaranteed return. Pre-emptive Rights: Holders of the Preferred Stock will be granted rights to participate in future equity financings of the Company based upon their pro-rata, as-if-converted, ownership of the Company. Automatic Conversion: The Preferred Stock shall be automatically converted into Common Stock at the then applicable conversion rate (1:1 assuming no share splits) in the event of an underwritten public offering of shares of the Company at a total offering of not less than [AMOUNT] and at a per share public offering price of not less than three times the Series A purchase price per share, adjusted for splits. Anti-Dilution: Series A shall have weighted average anti-dilution, based on a weighted average formula to be agreed, for all securities purchased as part of this transaction (excluding shares, options and warrants issued for management incentive and small issues for strategic purposes of under [NUMBER] shares). Management Options: Simultaneously with this transaction, one million new shares shall expand the Company's management incentive stock option pool - bringing the total number of shares issued and stock incentives (awards and options) authorized to [NUMBER OF SHARES]. Rights of First Offer; Tag-Along: The Company and the Investors will have a right of first refusal with respect to any employee's shares proposed to be resold. Alternatively, the Investors will have the right to participate in the sale of any such shares to a third party (co-sale rights), which rights will terminate upon a public offering. Information Rights: Monthly actual vs. plan and prior year. Annual budget [NUMBER] days before beginning of fiscal year","Term Sheet",42,"https://templates.business-in-a-box.com/imgs/1000px/term-sheet-D473.png","https://templates.business-in-a-box.com/imgs/250px/473.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#473.xml",{"title":6,"description":6},[158,160],{"label":18,"url":159},"finance-accounting",{"label":161,"url":162},"Raising Capital","raising-capital","term sheet","/template/term-sheet-D473",{"description":166,"descriptionCustom":6,"label":167,"pages":168,"size":169,"extension":10,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":174,"keywords":182,"url":183},"BOARD RESOLUTION OF [YOUR COMPANY NAME] ADOPTED ON [DATE] The undersigned, being all the directors of [YOUR COMPANY NAME], hereby sign the following amended resolutions: RESOLVED THAT: The financial statements of the company for the fiscal year ended [Month and day], prepared by [Accountant's name], Chartered Accountants, under their comments dated [Date], are approved which approval shall be evidenced by signature of the balance sheet. OR The financial statements of the company for the fiscal year ended [Month and day], prepared by [Auditors' names], under their audit report dated [Date], are approved, which approval shall be evidenced by signature of the balance sheet. The approved financial statements be placed before the annual meeting of shareholders of the company. [Accountants] are appointed the accountants of the company for the current fiscal year. By-Law No. [Number] is passed as a by-law of the company to be placed before a meeting of shareholders of the company for confirmation. ","Board Resolution","1",34,"https://templates.business-in-a-box.com/imgs/1000px/board-resolution-D78.png","https://templates.business-in-a-box.com/imgs/250px/78.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#78.xml",{"title":6,"description":6},[175,176,179],{"label":115,"url":116},{"label":177,"url":178},"Board of Directors","board-of-directors",{"label":180,"url":181},"Board Resolutions","business-resolutions","board resolution","/template/board-resolution-D78",false,{"seo":186,"reviewer":198,"quick_facts":202,"at_a_glance":204,"personas":208,"variants":233,"glossary":260,"clauses":291,"how_to_fill":342,"common_mistakes":373,"faqs":390,"industries":415,"comparisons":432,"diy_vs_pro":446,"related_template_ids_curated":459,"schema":470,"classification":472},{"meta_title":187,"meta_description":188,"primary_keyword":189,"secondary_keywords":190},"Letter Examples For A Subscription Of Shares Template (Free Word)","Free share subscription letter template for formal offers to subscribe for shares in a company. Used in 190+ countries. Free Word and PDF download.","letter for subscription of shares",[191,192,193,194,195,196,197],"share subscription letter template","subscription of shares letter example","share subscription request letter","letter to subscribe for shares","share subscription notice template","share offer subscription letter word","equity subscription letter template",{"name":199,"credential":200,"reviewed_date":201},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":203,"legal_review_recommended":184,"signature_required":184},"easy",{"what_it_is":205,"when_you_need_it":206,"whats_inside":207},"A Letter for a Subscription of Shares is a formal written communication sent by an investor or subscriber to a company to express intent and formally apply to purchase a defined number of shares at a stated price. This free Word download provides ready-to-use letter examples you can edit online and export as PDF, covering the key elements of a proper subscription notice.\n","Use it when an individual or entity wishes to formally subscribe to newly issued shares during a capital raise, rights issue, or private placement. It is also used when a company invites shareholders or third-party investors to participate in a share offering and requires written confirmation of intent.\n","Subscriber identification, details of the shares being subscribed for, the subscription price and payment terms, a declaration of intent to be bound, and the subscriber's signature block. The template includes multiple letter examples suited to different subscription scenarios.\n",[209,213,217,221,225,229],{"title":210,"use_case":211,"icon_asset_id":212},"Startup founders","Documenting early investor share subscriptions during a seed round","persona-startup-founder",{"title":214,"use_case":215,"icon_asset_id":216},"Corporate secretaries","Processing formal subscription notices for new share issuances","persona-corporate-secretary",{"title":218,"use_case":219,"icon_asset_id":220},"Angel investors","Submitting a written subscription application to a private company","persona-investor",{"title":222,"use_case":223,"icon_asset_id":224},"Small business owners","Inviting co-owners or partners to subscribe for additional shares","persona-small-business-owner",{"title":226,"use_case":227,"icon_asset_id":228},"Finance managers","Managing documentation for a rights issue or private placement round","persona-finance-manager",{"title":230,"use_case":231,"icon_asset_id":232},"Legal and compliance officers","Ensuring a written subscription trail exists for regulatory filing purposes","persona-legal-counsel",[234,238,241,245,249,253,256],{"situation":235,"recommended_template":236,"slug":237},"Investor applying to subscribe for new shares in a startup","Share Subscription Letter (Investor to Company)","letter-examples-for-a-subscription-of-shares-D5163",{"situation":239,"recommended_template":240,"slug":237},"Company formally inviting a named party to subscribe for shares","Share Subscription Invitation Letter (Company to Subscriber)",{"situation":242,"recommended_template":243,"slug":244},"Existing shareholder exercising rights under a rights issue","Rights Issue Acceptance Letter","issue-tracking-sheet-D13471",{"situation":246,"recommended_template":247,"slug":248},"Formalizing equity terms agreed in a term sheet","Share Subscription Agreement","share-subscription-agreement-private-long-form-D343",{"situation":250,"recommended_template":251,"slug":252},"Transferring existing shares rather than issuing new ones","Share Transfer Agreement","stock-transfer-agreement-D14069",{"situation":254,"recommended_template":90,"slug":255},"Recording the full terms of an equity investment round","shareholders-agreement-D1016",{"situation":257,"recommended_template":258,"slug":259},"Documenting a convertible note or SAFE investment","Convertible Note Agreement","convertible-note-agreement-D870",[261,264,267,270,273,276,279,282,285,288],{"term":262,"definition":263},"Subscription of Shares","The formal process by which an investor applies to receive newly issued shares from a company in exchange for payment.",{"term":265,"definition":266},"Subscriber","The individual or entity applying to purchase shares directly from the company, as opposed to buying from an existing shareholder.",{"term":268,"definition":269},"Subscription Price","The price per share agreed between the company and the subscriber at the time of the share offering.",{"term":271,"definition":272},"Rights Issue","An offer by a company allowing existing shareholders to buy additional shares at a discount, typically in proportion to their current holdings.",{"term":274,"definition":275},"Private Placement","The sale of shares to a select group of investors rather than the general public, typically without a public prospectus.",{"term":277,"definition":278},"Allotment","The formal act by which a company's board approves and assigns newly issued shares to a subscriber following acceptance of a subscription application.",{"term":280,"definition":281},"Par Value","The nominal face value of a share as stated in the company's articles of incorporation, often distinct from the market or subscription price.",{"term":283,"definition":284},"Share Certificate","A document issued by the company to the shareholder confirming ownership of a specific number of shares following successful allotment.",{"term":286,"definition":287},"Consideration","The payment or other value given by the subscriber in exchange for the shares, most commonly a cash sum at the agreed subscription price.",{"term":289,"definition":290},"Capitalization Table (Cap Table)","A spreadsheet recording all equity owners, their share counts, and ownership percentages — updated each time new shares are issued or transferred.",[292,297,302,307,312,317,322,327,332,337],{"name":293,"plain_english":294,"sample_language":295,"common_mistake":296},"Heading and Date","Identifies the letter as a formal subscription notice and records the date on which it is submitted.","[CITY], [DATE]\n\nRe: Application for Subscription of [NUMBER] Shares in [COMPANY NAME]","Omitting the date entirely — undated subscription letters create disputes about when the offer was made and whether it was accepted within a valid offering window.",{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Parties — Subscriber and Company","States the full legal name and address of the subscriber and the company whose shares are being subscribed for.","To: The Board of Directors\n[COMPANY NAME]\n[REGISTERED ADDRESS]\n\nFrom: [SUBSCRIBER FULL NAME / ENTITY NAME], [ADDRESS]","Using a trading name instead of the subscriber's or company's registered legal name, which can complicate share register entries and later transfers.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Statement of Intent to Subscribe","A clear declaration that the subscriber wishes to apply for a defined number of shares and agrees to be bound by the terms of the subscription.","I/We hereby apply to subscribe for [NUMBER] ordinary shares of [COMPANY NAME] at a subscription price of [CURRENCY][PRICE] per share, on the terms set out in this letter.","Writing a vague expression of interest rather than a firm application — phrases like 'I would like to invest' do not constitute a formal subscription and will not support an allotment resolution.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"Share Class and Number of Shares","Specifies the class of shares (e.g., ordinary, preference, Class A) and the exact number being subscribed for.","The shares applied for are [NUMBER] [CLASS] shares, each with a par value of [CURRENCY][PAR VALUE].","Failing to specify the share class when the company has multiple classes — leaving the type of shares unresolved can invalidate the subscription or require a corrective resolution.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"Subscription Price and Total Consideration","States the agreed price per share, the total amount payable, and the currency.","The total subscription price payable is [CURRENCY][TOTAL AMOUNT], being [NUMBER] shares at [CURRENCY][PRICE] per share.","Stating only the per-share price without the total — if the number of shares is later disputed, there is no agreed ceiling on the total consideration.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Payment Terms","Describes when and how the subscription price will be paid — on application, in installments, or upon allotment.","Payment in full will be made by [BANK TRANSFER / CHEQUE] to [ACCOUNT DETAILS] upon allotment of the shares, no later than [DATE].","Leaving payment timing undefined — companies have issued shares, updated the share register, and then been unable to collect payment because no deadline was recorded.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Representations and Acknowledgments","Short declarations by the subscriber confirming they have authority to subscribe, are aware of risks, and have not relied on any unwritten representations.","The undersigned confirms that (a) they have the legal capacity and authority to enter into this subscription; (b) they have not relied on any representations not contained in this letter or the offering documents; and (c) they understand that investment in shares carries risk of total loss.","Omitting this block entirely in simple subscription letters — without it, a subscriber who later suffers a loss may claim they were misled by verbal assurances.",{"name":328,"plain_english":329,"sample_language":330,"common_mistake":331},"Acceptance Mechanism","Explains how the company will formally accept the subscription — typically by written allotment notice or board resolution — and what happens if the application is not accepted.","This application shall be deemed accepted upon the Company issuing a written allotment notice to the subscriber. The Company reserves the right to accept or decline this application in whole or in part.","Not specifying how acceptance is communicated — subscribers have assumed their subscription was accepted (and transferred funds) when no allotment decision had been made.",{"name":333,"plain_english":334,"sample_language":335,"common_mistake":336},"Governing Terms and Reference to Offering Documents","References any term sheet, shareholders agreement, or offering memorandum whose terms govern the shares being subscribed for.","This subscription is made subject to the terms of the Shareholders Agreement dated [DATE] and the Company's Articles of Association as amended to date.","Failing to cross-reference the shareholders agreement — the subscriber receives shares without being contractually bound to the rights and restrictions agreed between existing shareholders.",{"name":338,"plain_english":339,"sample_language":340,"common_mistake":341},"Subscriber Signature Block","The subscriber's name, title (if signing on behalf of an entity), and signature, confirming the application.","Signed by: [SUBSCRIBER NAME]\nTitle: [TITLE — if signing as authorized representative]\nDate: [DATE]","Having an unauthorized signatory sign on behalf of a corporate subscriber — if the individual lacked board authority, the subscription application may be voidable.",[343,348,353,358,363,368],{"step":344,"title":345,"description":346,"tip":347},1,"Identify the correct letter example for your scenario","The template includes multiple letter examples — subscriber-to-company and company-to-subscriber formats. Select the version that matches who is initiating the communication.","If the company is running a formal round with a term sheet, use the subscriber-to-company format and attach the term sheet as a reference exhibit.",{"step":349,"title":350,"description":351,"tip":352},2,"Enter the subscriber's full legal name and address","Use the subscriber's registered legal name exactly as it appears on incorporation documents or government ID. For individual investors, use the full name as it will appear on the share register.","If the subscriber is a trust or nominee entity, state the entity name and add a note identifying the beneficial owner — many company registries require this.",{"step":354,"title":355,"description":356,"tip":357},3,"State the share class, number of shares, and price","Fill in the exact share class (e.g., ordinary shares, Series A preference shares), the number of shares being applied for, the price per share, and the total consideration.","Confirm the share class and par value against the company's current articles of association before completing this section.",{"step":359,"title":360,"description":361,"tip":362},4,"Define payment terms and method","Specify whether payment is due on application or upon allotment, the payment method (bank transfer, cheque), and provide full account details or instructions.","Net 10 from allotment date is a practical standard for private placements — it gives the company time to pass the board resolution before funds are expected.",{"step":364,"title":365,"description":366,"tip":367},5,"Reference governing documents","Insert the date and title of any shareholders agreement, subscription agreement, or offering memorandum whose terms apply to these shares.","If no shareholders agreement exists yet, note that one will be executed concurrently — this prevents the subscriber from claiming they are not bound by future equity terms.",{"step":369,"title":370,"description":371,"tip":372},6,"Complete and send the letter","Have the subscriber sign the letter and deliver it to the board of directors by the method specified in the offering documents — email with PDF attachment is standard for most private placements.","Request a written acknowledgment of receipt from the company immediately — this timestamps the application and protects the subscriber if the offering closes oversubscribed.",[374,378,382,386],{"mistake":375,"why_it_matters":376,"fix":377},"Using a vague expression of interest instead of a firm application","Phrases like 'I am interested in investing' do not constitute a subscription application and cannot support a board allotment resolution. The company cannot legally issue shares against an informal expression of interest.","Use definitive language — 'I hereby apply to subscribe for [NUMBER] shares' — so the letter functions as a formal offer the board can accept and act on.",{"mistake":379,"why_it_matters":380,"fix":381},"Omitting the share class when multiple classes exist","A subscription application that does not specify the share class is ambiguous — the company cannot allot without knowing which class, and the subscriber may receive a class with different voting or economic rights than intended.","Always state the specific share class and confirm it against the company's current capitalization table and articles before submitting.",{"mistake":383,"why_it_matters":384,"fix":385},"No defined payment deadline","Without a payment deadline tied to allotment, companies have updated their share register and issued share certificates before receiving funds — creating a debt-collection problem rather than a clean equity transaction.","State a specific deadline: 'Payment to be made within [X] business days of receipt of the allotment notice.'",{"mistake":387,"why_it_matters":388,"fix":389},"Corporate subscriber signed by an unauthorized individual","If the person signing on behalf of a corporate subscriber did not have board authorization to commit to the subscription, the application may be voidable — leaving both parties in a disputed position after the allotment resolution has passed.","Attach a certified copy of the corporate subscriber's board resolution or extract from its authorization documents confirming the signatory's authority.",[391,394,397,400,403,406,409,412],{"question":392,"answer":393},"What is a letter for a subscription of shares?","A letter for a subscription of shares is a formal written application submitted by an investor to a company, requesting to purchase a defined number of newly issued shares at an agreed price. It documents the subscriber's intent, the number and class of shares applied for, the total consideration, and the payment terms. It is the foundational document that triggers the company's allotment process.\n",{"question":395,"answer":396},"Is a subscription letter legally binding?","A properly drafted subscription letter functions as a formal offer that becomes binding on both parties once the company accepts it — typically through a board allotment resolution and written allotment notice. Until acceptance, the company is generally free to decline or partially accept the application. The letter itself does not transfer shares; allotment by board resolution does.\n",{"question":398,"answer":399},"What is the difference between a subscription letter and a share subscription agreement?","A subscription letter is a shorter, simpler document used for straightforward private placements or early-stage rounds where the commercial terms are already set out in a term sheet or shareholders agreement. A share subscription agreement is a fuller contract that contains representations and warranties, conditions precedent, and investor protections. Use a subscription letter for simplicity; use a subscription agreement when the round involves material negotiated terms.\n",{"question":401,"answer":402},"Do I need a lawyer to prepare a share subscription letter?","For most straightforward private placements between known parties, a well-drafted template is sufficient. Legal review is advisable when the subscription involves preference shares with complex economic rights, cross-border investors subject to securities regulations, or when the amount being subscribed is large relative to the company's overall capitalization. A template review typically takes 30–60 minutes and costs $150–$400.\n",{"question":404,"answer":405},"Does a share subscription letter need to be signed?","A signature is not required to make the letter valid in most jurisdictions, but it is strongly recommended as evidence of the subscriber's intent and authority. For corporate subscribers, the signature of an authorized officer or director — supported by a board resolution — is standard practice and reduces the risk of the subscription being challenged later.\n",{"question":407,"answer":408},"What happens after a subscription letter is submitted?","The company's board of directors reviews the application and passes an allotment resolution approving the issuance of the shares. The company then sends the subscriber an allotment notice confirming the number of shares allotted. The subscriber pays the agreed consideration, the share register is updated, and a share certificate is issued. The full process typically takes 5–15 business days for a private company.\n",{"question":410,"answer":411},"Can a subscription letter be used for preference shares?","Yes — a subscription letter can be used for any class of shares, including preference shares. However, if the preference shares carry special economic rights (liquidation preference, anti-dilution protection, dividend priority), those terms should be set out in a full share subscription agreement or shareholders agreement rather than summarized in the letter, to avoid ambiguity about the rights being acquired.\n",{"question":413,"answer":414},"What records should be kept after a share subscription?","Retain the signed subscription letter, the board allotment resolution, the allotment notice sent to the subscriber, proof of payment received, the updated share register, and the share certificate issued. These documents form the complete paper trail for the equity transaction and are required for regulatory filings, future due diligence, and any subsequent transfer or exit transaction.\n",[416,420,424,428],{"industry":417,"icon_asset_id":418,"specifics":419},"Technology / SaaS","industry-saas","Used during seed and pre-Series A rounds to document early angel or founder share subscriptions before a full subscription agreement is warranted.",{"industry":421,"icon_asset_id":422,"specifics":423},"Professional Services","industry-professional-services","Law firms, accounting practices, and consultancies use subscription letters when admitting new equity partners who are purchasing shares in the partnership holding company.",{"industry":425,"icon_asset_id":426,"specifics":427},"Real Estate","industry-real-estate","Property investment vehicles and real estate holding companies use share subscription letters to bring in new equity investors for specific development projects.",{"industry":429,"icon_asset_id":430,"specifics":431},"Manufacturing","industry-manufacturing","Family-owned manufacturers use subscription letters when issuing shares to new shareholders as part of succession planning or capital expansion without a full securities offering.",[433,436,439,442],{"vs":247,"vs_template_id":434,"summary":435},"D{SHARE_SUBSCRIPTION_AGREEMENT_ID}","A share subscription agreement is a full contract with representations, warranties, conditions precedent, and investor protections — suited to structured rounds with negotiated terms. A subscription letter is a shorter, simpler instrument for straightforward private placements where terms are already agreed. Use the letter for simplicity; use the agreement when investor protections and conditions need to be formally documented.",{"vs":251,"vs_template_id":437,"summary":438},"share-transfer-agreement-D5159","A share transfer agreement documents the sale of existing shares from one shareholder to another — no new shares are created. A subscription letter applies for newly issued shares from the company itself, increasing the total share count and diluting existing holders. The transaction type — new issuance vs. secondary transfer — determines which document is needed.",{"vs":90,"vs_template_id":440,"summary":441},"shareholders-agreement-D5157","A shareholders agreement governs the ongoing rights and obligations of all shareholders — voting, dividends, drag-along, and tag-along rights. A subscription letter is a one-time transactional document used to apply for shares. The two documents work together: the subscription letter should cross-reference the shareholders agreement so the new subscriber is immediately bound by its terms on allotment.",{"vs":443,"vs_template_id":444,"summary":445},"Letter of Intent","letter-of-intent-D13606","A letter of intent expresses a preliminary, typically non-binding interest in a transaction — used to agree on broad terms before drafting definitive documents. A subscription letter is a binding application to purchase shares at specific terms already agreed. If share price and terms are still being negotiated, a letter of intent comes first; the subscription letter follows once terms are settled.",{"use_template":447,"template_plus_review":451,"custom_drafted":455},{"best_for":448,"cost":449,"time":450},"Straightforward private placements between known parties with agreed terms and ordinary share classes","Free","15–30 minutes",{"best_for":452,"cost":453,"time":454},"Rounds involving preference shares, cross-border investors, or subscriptions above $100,000","$150–$400 (lawyer or corporate secretary review)","1–2 days",{"best_for":456,"cost":457,"time":458},"Structured investment rounds with negotiated investor protections, anti-dilution, or regulatory filing requirements","$800–$3,000+","1–2 weeks",[255,252,460,461,462,463,464,465,466,467,468,469],"letter-of-intent_acquisition-of-business-D5197","non-disclosure-agreement-nda-D12692","term-sheet-D473","board-resolution-D78","employment-agreement-executive-D543","financial-projections_12-months-D360","business-plan-canvas-(one-page)-D12527","independent-contractor-agreement-D160","sales-invoice-D383","corporate-governance-policy-D13943",{"emit_how_to":471,"emit_defined_term":471},true,{"primary_folder":99,"secondary_folder":473,"document_type":474,"industry":475,"business_stage":476,"tags":477,"confidence":482},"equity-and-mergers","letter","general","all-stages",[478,479,480,481],"equity","legal","share-subscription","investor-communication",0.92,"\u003Ch2>What is a Letter for a Subscription of Shares?\u003C/h2>\n\u003Cp>A \u003Cstrong>Letter for a Subscription of Shares\u003C/strong> is a formal written application submitted by an investor or subscriber to a company, requesting to purchase a specified number of newly issued shares at an agreed price per share. Unlike a share transfer, which moves existing shares between parties, a subscription letter applies directly to the company for shares that do not yet exist — shares the board will create and allot upon accepting the application. The letter records the subscriber's identity, the share class and quantity, the total consideration, payment terms, and a declaration of binding intent, providing the documentary foundation the board needs to pass a valid allotment resolution.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a formal subscription letter on file, a company has no clear written record of the terms on which new shares were issued — creating disputes over price, class, and quantity that are difficult to resolve after the fact. An undocumented subscription also leaves gaps in the share register audit trail, which buyers and investors scrutinize closely during due diligence. For the subscriber, a signed letter protects against the company later denying the agreed price or share count. This template provides ready-to-use letter examples covering the most common subscription scenarios, so both company and investor walk away from the transaction with a clean, unambiguous record from the moment the application is submitted.\u003C/p>\n",1781186021571]