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Writing a Subscription Agreement

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<h1>Writing a Subscription Agreement</h1>
<p>This playbook outlines the step-by-step process to draft a subscription agreement. A subscription agreement outlines the terms of an equity purchase in a private company.</p>

<h3>Step 1: Preparation</h3>
<p>Gather all necessary information about the investment and the involved parties. This includes company details, investor details, the amount of investment, and the number of shares being purchased.</p>

<h3>Step 2: Drafting</h3>
<p>Create a first draft of the subscription agreement. Ensure to include key clauses such as investment amount, share price, company valuation, investor's rights and obligations, governing law, and any representations and warranties.</p>

<h3>Step 3: Review</h3>
<p>Carefully review the draft to ensure that all terms are clear and legally sound. Check for any errors or omissions in the agreement.</p>

<h3>Step 4: Feedback</h3>
<p>Share the draft with relevant parties, such as legal advisors and the investor, for feedback. Incorporate any suggestions or corrections they might have.</p>

<h3>Step 5: Finalize</h3>
<p>Finalize the subscription agreement by making the necessary revisions. Ensure that both the company and the investor approve the final terms.</p>

<h3>Step 6: Execution</h3>
<p>Arrange for all parties to sign the agreement. Ensure that all signatures are collected and the agreement is dated.</p>

<h3>Step 7: Record Keeping</h3>
<p>Keep a copy of the executed agreement securely filed. Distribute copies to all parties involved for their records.</p>

<h2>General Notes</h2>

<h3>Legal Compliance</h3>
<p>Always ensure that the subscription agreement complies with the relevant securities laws and regulations.</p>

<h3>Professional Advice</h3>
<p>Consider obtaining professional legal and financial advice to tailor the subscription agreement to the specific circumstances.</p>