EXPLANATORY NOTES FOR THE SIMPLE SHARE SUBSCRIPTION AGREEMENT WHERE THE COMPANY IN QUESTION ONLY HAS ONE SHAREHOLDER AND HAS ONLY PAR VALUE SHARES AUTHORISED AND IN ISSUE

This is a Share Subscription Agreement that is to be used only where:

  1. there is one shareholder;
  2. the issuing company only has par value shares in existence;
  3. there are enough authorised, but unissued, par value shares to be issued to the subscriber;
  4. the issuing company has issued some of the par value shares and has remaining authorised, but unissued, par value shares in existence;
  5. the issuing company wishes to issue more par value shares; and
  6. the issuing company does not wish to convert the par value shares to no par value shares.

Please do not use this precedent where

  1. the issuing company has more than one current shareholder, or
  2. where the issuing company has no par value shares in existence; or
  3. where there are not enough par value shares in existence to be issued to the subscriber.

This agreement is over 14 pages long and is typed up using Tahoma font (11).