Docstoc Legal Agreements
This Subscription Agreement is an essential document for selling stock to individual
investors. It serves as protection for the company and to solicit information from the
investors. This agreement limits the financial liability of the investor and the investor has no
say in company decisions. It contains standard information that is typically included in
subscription agreements including the parties' names, the number and price of shares and
the expectations of the parties. This document should be used by a small business or start-
up located in Arkansas when selling stock to individual investors.
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SUBSCRIPTION AGREEMENT
THIS SUBSCRIPTION AGREEMENT (hereinafter “Agreement”) is made as of ____ [Month]
____ [Date] 20___ [Year], by and between ________________________________
[Instruction: Insert name of purchaser], with registered address at
_______________________________ [Instruction: Insert address of purchaser] (hereinafter
the “Purchaser”), and ____________________ [Instruction: Insert name of company], a
Arkansas corporation (hereinafter the “Company”). The Purchaser and the Company may
individually be referred to as “Party” or collectively as the “Parties”.
1. SALE OF SECURITIES
The Purchaser hereby agrees to purchase ___________ [Instruction: Insert the number of
shares the purchaser agrees to purchase] shares of the Company's Common Stock
(hereinafter "Shares") for an aggregate purchase price of ___________ (___) [Instruction:
Insert the aggregate purchase price, e.g., one thousand dollars ($1000)] dollars, payable
by cash, check, or other means acceptable to the Company, receipt of which the Company
hereby acknowledges. The Company shall deliver a certificate representing the Shares as
soon as is practicable after the date of this Agreement. The Shares are sometimes referred to
collectively as the "Securities."
2. REPRESENTATIONS OF THE PURCHASER
Because of the exemptions from the registration requirements of the Uniform Securities Act
(1956) (the "Act") and of any applicable state securities act (a "State Act") and from the
qualification requirements of the Arkansas Corporate Securities Law (the "Law") relied upon
by the Company in making the sale of the Securities to the Purchaser, the Purchaser hereby
warrants that the Purchaser:
a. Is experienced in evaluating and investing in start-up and emerging growth businesses
such as the Company, has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of an investment in the
Securities, and has the ability to bear the economic risk of such an investment;
b. Is aware that the Securities are highly speculative and that there can be no assurance as to
what return, if any, there may be;
c. Has received, reviewed, and understood the Company’s Articles of Incorporation and all
such information concerning the Company as the Purchaser has requested;
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d. Is aware of the Company's business affairs and financial condition and has, at a
reasonable time prior to the date hereof, had the opportunity to ask questions and receive
answers concerning the terms and conditions of the purchase and sale of the Securities
and to obtain any additional information which the Company possessed or could acquire
without unreasonable effort or expense necessary to verify the accuracy of any
information furni