Subscription Agreement

SUBSCRIPTION AGREEMENT

Between

THE INVESTORS

and

[company name]

Definitions................................................................................................................

Interpretation..........................................................................................................

Subscriptions..........................................................................................................

Completion.............................................................................................................

Warranties..............................................................................................................

Limitations on Warranty Claims.............................................................................

Announcements.....................................................................................................

Costs and expenses...............................................................................................

Cumulative remedies..............................................................................................

Waiver.....................................................................................................................

Entire agreement....................................................................................................

Variation and termination.......................................................................................

No partnership........................................................................................................

Assignment and transfer........................................................................................

Rights of third parties.............................................................................................

Counterparts; No originals.....................................................................................

Notices....................................................................................................................

Severance...............................................................................................................

Governing law.........................................................................................................

Jurisdiction.............................................................................................................

Confirmation by Investors......................................................................................

Regulatory matters.................................................................................................

Schedule 1 The Investors.................................................................................................

Schedule 2.......................................................................................................................

Schedule 3 Members of the Company - pre-Completion..............................................

Schedule 4 Execution Conditions....................................................................................

Schedule 5.......................................................................................................................

Schedule 6 The Properties..............................................................................................

Schedule 7 Subscription Adherence Agreement............................................................

DATE                                                                                                     [effective date]

PARTIES

The persons whose names and addresses are set out in Schedule 1 (together the "Investors" and each an "Investor"); and

[company name] (company number [company number] incorporated under the laws of [country of incorporation]) whose registered office is at [office address] (the "Company").

INTRODUCTION

The Company is a private company limited by shares, brief particulars of which are set out in [particulars of the company] of Schedule 2.

Details of the legal ownership of the share capital of the Company are set out in Schedule 3. 

The Investors wish to subscribe for shares in the capital of the Company on and subject to the terms of this agreement.

AGREED TERMS

Definitions

In this agreement, except where a different interpretation is necessary in the context, the words and expressions set out below shall have the following meanings:

"Accounts" means [the [audited] [balance sheet / statement of financial position] and [profit and loss account / income statement and statement of other comprehensive income / statement of comprehensive income] of the Company]] [a consolidation of the [audited] [balance sheets / statements of financial position] and [profit and loss accounts / income statements and statements of other comprehensive income / statement of comprehensive income]  of the Company and the Subsidiary Undertakings] for the period ended on the Accounts Date in the agreed form;

"Accounts Date" means [accounts date];

"Act" means the Companies Act 2006;

["Additional New Shares" means up to [insert] additional Series A Shares to be subscribed for by one or more additional investors at a price at least equal to the Subscription Price pursuant to clause 3.4;]

"Adherence Agreement" has the meaning given in the Shareholders' Agreement;

"Affiliate" means, with respect to any Investor, any other person who, directly or indirectly, controls, is controlled by, or is under common control with such Investor, including, without limitation, any general partner, managing member, officer or director of such Investor or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management or advisory company with, such Investor;

"Board" means the board of directors of the Company as constituted from time to time;

"Business" means [company business details], as more fully described in the Initial Business Plan;

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