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. Key provisions include:

• 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 Canadian flow-through shares subscription agreement is in MS Word format and is fully editable.