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GRAND PRIX FUNDS, INC.
SUBSCRIPTION AGREEMENT
To the Board of Directors of Grand Prix Funds, Inc.:
The undersigned purchaser (the "Purchaser") hereby subscribes to the
number of shares (the "Shares") of common stock of Grand Prix Funds, Inc. (the
"Company") as follows:
Aggregate
Series Number of Shares Purchase Price
------ ---------------- --------------
Grand Prix Fund 10,000 $ 100,000
It is understood that a certificate representing the Shares shall not
be issued to the undersigned, but such ownership shall be recorded on the books
and records of the Company's transfer agent. Notwithstanding the fact that a
certificate representing ownership will not be issued, the Shares will be deemed
fully paid and nonassessable.
The Purchaser agrees that the Shares are being purchased for investment
with no present intention to resell or redeem the Shares.
The Purchaser acknowledges that costs incurred by the Company in
connection with its organization, registration and initial public offering of
Shares of the Company have been deferred and are being amortized over a period
of five years from the date upon which the Company commences its investment
activities.
The Purchaser agrees that in the event any of the Shares purchased
under this Subscription Agreement are redeemed during this five year period, the
Company is authorized to reduce the redemption proceeds to cover any unamortized
organizational expenses in the same proportion as the number of Shares being
redeemed bears to the number of Shares outstanding at the time of the
redemption. If, for any reason, the reduction of redemption proceeds is not in
fact made by the Company in the event of such a redemption, the Purchaser agrees
to reimburse the Company immediately for any unamortized organizational expenses
in the proportion stated above.
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Dated and effective as of the 22nd day of December, 1997.
Purchaser: Target Capital Management, Ltd.
/s/ Xxxxxx Xxxxxxx
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By: Xxxxxx Xxxxxxx
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Its: General Partner
ACCEPTANCE
The foregoing subscription is hereby accepted.
Dated and effective as of the 22nd day of December, 1997.
GRAND PRIX FUNDS, INC.
/s/ Xxxxxx Xxxxxxx
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By: Xxxxxx Xxxxxxx, President
/s/ Xxxxxxxx Xxxxxxxxx
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Attest: By: Xxxxxxxx Xxxxxxxxx
