Pre-Incorporation Stock Subscription Agreement [1]
Jurisdiction:
- South Dakota [3]
Area of Law:
- Incorporation [4]
This is an example of a Pre-Incorporation Stock Subscription Agreement which is a document that lays out the duties and compensation of the promoters of a new corporation. Before drawing up this type of form, however, it is essential that you fully understand what a stock subscription is. What this term means is the purchase of a certain number of shares at a stipulated price.
Form Preview:
PRE-INCORPORATION
STOCK SUBSCRIPTION AGREEMENT
______________________, referred to as PROMOTER, and ____________, referred to as SUBSCRIBER, agree:
PROMOTER shall organize a corporation to be named __________________, and incorporated in the state of South Dakota.
The planned initial stock offering shall be _____ shares, of ______ stock, with a par value of $______(_________ per share).
SUBSCRIBER agrees to purchase shares of _____________ stock upon issuance. In the event that the offering is over subscribed, the SUBSCRIBER shall be entitled to a proportional purchase of shares.
The shares purchased are not registered with the United States Securities and Exchange Commission, nor the Securities Commission of any state.
The PURCHASER represents that it is qualified under the relevant rules and regulations of the United States Securities and Exchange Commission and the Securities Commission of any state, which may have jurisdiction to purchase these shares.
The PURCHASER further represents that it is not purchasing these shares with an intention of resale, nor will it take any actions that may result in it being considered an underwriter of the shares.