This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The undersigned, having read and approved the foregoing Plan of Organization covering the construction of --------- [insert name of building], for valuable consideration received and in consideration of the mutual agreements herein contained, each for himself agrees to and with the subscribers hereto and --------
[insert name of corporation] to purchase --------- shares of the capital stock at
-------- dollars ($-------) per share of --------- [insert name of corporation], when incorporated (full paid and non-assessable) and to pay to --------- [insert name of corporation], the full par value thereof in cash amounting to --------dollars ($--------) when called for by said --------- [insert name of corporation], in the following instalments in accordance with the terms of this subscription agreement:--------[insert stage of performance at which each instalment is to be paid; and amount then payable].
The mortgage indebtedness on said premises on completion of the building shall not exceed--------dollars ($---------) (or such amount as shall be fixed in accordance with the provisions of the annexed plan and the amount of the total subscriptions hereto).
The said mortgage indebtedness shall constitute the only indebtedness against the Owner at the time the building is delivered as completed and the mortgage indebtedness and capital stock of the Owner shall not exceed --------dollars ($---------).
For the protection of the enterprise, it is expressly agreed that the Contractor reserved the right, at any time before the building is delivered to the Owner, to cancel this subscription agreement by returning to the Subscriber all amounts theretofore paid by him thereupon, with legal interest; provided, however, that this right shall not be exercised for the purpose of securing a high price for the Subscriber's shares.
Any notice or call given hereunder shall be duly and properly given as of the date of mailing if sent by mail to the Subscriber at the Subscriber's address as given hereunder. This subscription shall become effective when approved by --------- [insert name of promoter, etc.].
This agreement may consist of several counterparts, to be executed in triplicate by each of the Subscribers, which, when taken together, shall constitute the subscription agreement of the parties hereto. Any and all payments made hereunder shall be deposited by --------- [insert name of promoter, etc.), in a separate account for the purpose of carrying out the plan of this agreement. This agreement to become effective when subscription totaling --------- dollars ($--------) has been accepted. ---------.
Approved --------- [insert name and address of promoter, etc.].