A corporation may wish to raise capital from outside investors, and any interested investors can make an offer to subscribe for shares. The content of such an offer to subscribe varies depending on the type of corporation, the amount requested or offered, and the consideration in shares offered by the corporation. The subscription only takes effect once the corporation has accepted and issued the subscribed shares.

We recommend using this document as a starting point to draft a share subscription offer where the offor is a third party and, as such, requires more detailed documentation relating to the share subscription and the terms thereof, rather than the case where the offor already has some knowledge of the internal administration of the company.

0.00 INTERPRETATION
0.01 Terminology
0.01.01 Activities
0.01.02 Agreement
0.01.03 Breach
0.01.04 Closing Date
0.01.05 Confidential Information
0.01.06 Encumber / Encumbrance
0.01.07 Equipment
0.01.08 Financial Statements
0.01.09 Force Majeure
0.01.10 Hazardous Material
0.01.11 Industrial Property
0.01.12 Intellectual Property
0.01.13 Law
0.01.14 Legal Representatives
0.01.15 Loss
0.01.16 Offer
0.01.17 Person
0.01.18 Shares
0.02 Entire Document
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Presumptions
0.05.09 Knowledge
0.05.10 Approval
0.05.11 Accounting Standards
1.00 PURPOSE
1.01 Legal Transaction
1.02 Conditions
1.02.01 Required by OFFEROR
1.02.02 Required by CORPORATION
2.00 PRICE OFFERED
3.00 TERMS OF PAYMENT
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Authority
5.02 Binding Agreement
5.03 Canadian Resident
5.04 Canadian Status
5.05 Exempt Transaction
5.06 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF OFFEROR
6.01 Status
7.00 REPRESENTATIONS AND WARRANTIES OF CORPORATION
7.01 Status
7.01.01 Insolvency
7.01.02 Conduct
7.02 Shares
7.02.01 Share Capital [Stated Capital]
7.02.02 Share of Voting Shares
7.02.03 [Stated] Capital Account
7.02.04 No Restrictions
7.02.05 Dividends
7.03 Options and Subscription Rights
7.04 Legal Status of CORPORATION
7.04.01 Incorporation
7.04.02 Books and Records
7.04.03 Meetings
7.04.04 Registers
7.05 Financial Statements
7.06 Financial Situation
7.07 Tax Matters
7.07.01 Income Tax
7.07.02 Filing
7.07.03 Default
7.07.04 Deductions and Remittances
7.08 Corporate Finance
7.08.01 Financing Agreements and Instruments
7.08.02 Leasing Agreements
7.08.03 Adverse Event
7.09 Legal Proceedings
7.10 Suretyships or Guarantees
7.11 Valid Title
7.11.01 Immovables
7.11.02 Lease
7.12 Procurement
7.12.01 Equipment
a) Ownership
b) Condition
c) Maintenance and Warranties
d) Encumbrance
7.12.02 Supply Agreements
7.12.03 Suppliers
7.12.04 Raw Materials
7.13 Accounts Receivable
7.14 Industrial and Intellectual Property
7.14.01 Right
7.14.02 Claims
7.15 Continuous Operation
7.16 Environment
7.16.01 Compliance
7.16.02 Hazardous Materials
7.16.03 Compliance
7.16.04 Notice of Default
7.17 Important Contracts
7.18 Human Resources
7.18.01 Labour Standards
7.18.02 Occupational Health and Safety
7.18.03 Collective Agreement
7.18.04 Pension and Other Plans
7.19 Insurance
7.19.01 Polices
7.19.02 Coverage
7.19.03 Good Standing
7.19.04 Claims
7.20 Disclosure
7.21 ICT Assets
7.21.01 Good Working Order
7.21.02 Software
7.21.03 Domain Names
7.22 Advertising and Promotions
7.22.01 List
7.22.02 Compliance
7.23 Marketing
7.23.01 List
7.23.02 Trade Practices
7.23.03 Consumer Protection
7.23.04 E-commerce
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Representations and Warranties
8.02 Indemnification
8.02.01 Threshold
8.02.02 Scope
8.02.03 Procedure
8.03 Disclosure of Offer
8.03.01 Undertaking
8.03.02 Public Announcement
8.03.03 Exception
8.04 Confidential Information
9.00 DUTIES AND OBLIGATIONS OF OFFEROR
10.00 DUTIES AND OBLIGATIONS OF CORPORATION
10.01 Use of the Product
10.02 Board of Directors (optional)
10.03 Indemnification
11.00 SPECIAL PROVISIONS
11.01 Remedies
11.01.01 Choice
11.01.02 No Limitations
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
a) Written Notice
b) Meeting
c) Legal Proceedings
d) Protective Measures
12.02.02 Mediation
a) Process
b) Mediator
c) Settlement
d) Legal Proceedings [OR Arbitration]
12.02.03 Arbitration
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Confidentiality
e) Hearing
f) Ruling
g) Costs
h) Supplementary Rules
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 WITHDRAWAL OF OFFER
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Expiry
15.02 Survival
16.00 SCOPE


SCHEDULE 0.01.06 – ENCUMBER / ENCUMBRANCE
SCHEDULE 0.01.07 – EQUIPMENT
SCHEDULE 7.04.01 – CERTIFICATE OF ATTESTATION OF CORPORATION
SCHEDULE 7.08.01 – FINANCING AGREEMENTS AND INSTRUMENTS
SCHEDULE 7.08.02 – LEASING AGREEMENTS
SCHEDULE 7.11.01 - IMMOVABLES
SCHEDULE 7.18.04 – PENSION AND OTHER PLANS
SCHEDULE 7.19.01 – INSURANCE POLICIES
SCHEDULE 7.19.04 – INSURANCE CLAIMS
SCHEDULE 7.22.01 – ADVERTISING CONTRACTS
SCHEDULE 7.23.01 – MARKETING CONTRACTS