Investor’s Exemption Status Sample Clauses
The Investor’s Exemption Status clause defines the requirement for investors to confirm their eligibility to invest under applicable securities laws, typically by verifying that they qualify as accredited or exempt investors. In practice, this clause may require investors to provide documentation or representations proving their status, such as income or net worth thresholds, or to complete specific questionnaires. Its core function is to ensure compliance with securities regulations, thereby protecting the issuer from legal liability and ensuring that only qualified individuals participate in the investment.
Investor’s Exemption Status. 5.1 The Investor, by its execution of this Subscription Agreement, hereby further represents, warrants to, and covenants with, the Issuer (which representations, warranties and covenants shall survive the Closing of the Offering) that the Investor is purchasing the Shares as principal for its own account, it is purchasing such Shares not for the benefit of any other person, and not with a view to the resale or distribution of the Shares and one of the following Exemptions applies to the Investor:
Investor’s Exemption Status. 6.1 The Investor, by its execution of this Subscription Agreement, hereby further represents, warrants to, and covenants with, the Issuer (which representations, warranties and covenants shall survive the Closing of the Offering) that the Investor is purchasing the Units as principal for its own account, it is purchasing such Units not for the benefit of any other person, and not with a view to the resale or distribution of the Units and one of the following Exemptions applies to the Investor:
(a) Insiders’ Family, Close Friends and Business Associates Exemption
(i) a director, executive officer or control person of the Issuer, or of an affiliate of the Issuer,
(ii) a spouse, parent, grandparent, brother, sister or child of a director, executive officer or control person of the Issuer, or of an affiliate of the Issuer,
(iii) a parent, grandparent, brother, sister or child of the spouse of a director, executive officer or control person of the Issuer or of an affiliate of the Issuer,
(iv) a close personal friend of a director, executive officer or control person of the Issuer, or of an affiliate of the Issuer,
(v) a close business associate of a director, executive officer or control person of the Issuer, or of an affiliate of the Issuer,
(vi) a founder of the Issuer or a spouse, parent, grandparent, brother, sister, child, close personal friend or close business associate of a founder of the Issuer,
(vii) a parent, grandparent, brother, sister or child of a spouse of a founder of the Issuer,
(viii) a person of which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons described in paragraphs (i) to (vii), or
(ix) a trust or estate of which all of the beneficiaries or a majority of the trustees or executors are persons described in paragraphs (i) to (vii);
Investor’s Exemption Status. 6.1 The Investor, by its execution of this Subscription Agreement, hereby further represents, warrants to, and covenants with, the Issuer and the Agent (and acknowledges that the Agent may rely thereon notwithstanding that it is not a signatory hereto) (which representations, warranties and covenants shall survive the Closing of the Offering) that:
(a) British Columbia Exemptions (At least one B.C. exemption contained in Section 6.1 through Section 6.3 must apply to every Investor even if the Investor is not a British Columbia resident.)