Pre Incorporation Agreement with One Incorporator to Advance the Payment of Shares
KNOW ALL MEN BE THESE PRESENTS:
This Agreement is entered into by and between:
_____________, of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, hereinafter referred to as the “First Party”;
– and –
_____________, likewise of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, hereinafter referred to as the “Second Party”;
WHEREAS, the Second Party intends to subscribe _____________ (______%) Percent of the initial issuance of shares of __Name of Corporation__, Inc., a corporation that is in the process of incorporation and registration;
WHEREAS, the First Party is able and willing to advance the paid-in amount of the said subscription intended to be made by the Second Party;
NOW, THEREFORE, for and in consideration of the foregoing premises, Parties hereby agree and covenant as follows:
1.The Second Party will be an incorporator of __Name of Corporation__, Inc. with a subscription of _____________ (______%) Percent of the initial issuance of shares in the said corporation or a total of _____________ (______) shares of the initial issuance of _____________ (______) shares with a par value of P_______/share and will pay up the amount of P_____________ upon incorporation;
2.That during the incorporation of the said corporation, the First Party shall advance the amount of P_____________ mentioned in the immediately preceding paragraph which will represent the amount paid-up by the Second Party in the Articles of Incorporation and corporate records of __Name of Corporation__, Inc.;
3.That the said advance to be made by the First Party shall be paid by the Second Party by way of deductions from dividends that may be declared and distributed in the course of the operation of the said corporation until fully satisfied;
4.That before the said advance made by the First Party is fully satisfied in accordance with the manner provided for in the immediately preceding paragraph, the shares to be listed in the name of the Second Party shall be considered as merely held in-trust for the First Party to the extent of the amount that is not yet satisfied.
IN WITNESS WHEREOF, we have hereunto affixed our signatures this _____________, in the City of _____________, Philippines.
FIRST PARTY SECOND PARTY
SIGNED IN THE PRESENCE OF: