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what is a subscription agreement a share subscription agreement is a legal document which contains the obligation for an investor through subscribing to the companys shares if certain conditions are fulfilled by the company these conditions are called conditions precedence often the obligation on the investor is not very tightly one towarded and they may have the opportunity to back out of the investment at the last moment the agreement also imposes restrictions on the company so that it does not take any AdSense that are not in the ordinary course of its business or share subscription agreement sets out the terms on which an investor had to buy shares from a private company it is often used to formalize informal Arrangements added between the part is you know terms it now share subscription agreement sets out the terms on which and investor has it to buy shares from a private company it is often is two formulas informal Arrangements added between the parties in our term sheet what do