Use this template to prepare a Subscription Agreement to purchase flow through shares issued by a Canadian oil and gas company
, with the proceeds to finance exploration.
- The issuing corporation covenants to incur expenditures which will qualify as Canadian exploration expenses or Canadian development expenses under the Income Tax Act.
- The issuer represents and warrants that the shares are flow-through shares, as defined by the Act.
- The issuer will flow through the expenditures to the purchaser, and will file the prescribed forms with the Minister of National Revenue.
- The issuer will indemnify and save the purchaser harmless from any income tax payable on the flow-through shares.
This Canada Subscription Agreement for Flow Through Shares
is in MS Word format and is fully editable.