The Placement Agent Agreement for online retailer Overstock.com was made available today by online legal document provider RealDealDocs.com.
In December of 2006, Overstock.com utilized a placement agent agreement when they hired an agent to handle the issuance and sale of the company’s shares to investors. And the following year Eddie Bauer Holdings drafted a placement agent agreement for the same purpose.
A placement agency agreement is an agreement between an issuer of stock of a company and a placement agent. Per the terms of the agreement, a placement agent agrees to use his or her “best efforts” to secure investors to invest in the company. The agreement is an integral part of the process by which a company tries to secure institutional or private investors as part of a public or private offering of stock. Generally a subscription agreement, an escrow agreement, a letter of opinion from the company’s legal counsel, and a shelf registration statement and prospectus supplement will accompany this agreement.
If you own a small company and are looking for investors to invest in your company, you may want to consider hiring an experienced placement agent to help secure investors. A placement agent will usually have relationships with institutional investors, such as pension or hedge funds, and can serve as a broker to try to convince these investors to invest in your company.
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About : About RealDealDocs.com: RealDealDocs.com is a leading online legal document resource offering millions of sample legal agreements, contracts and clauses. Members can edit, print and download copies of real legal documents used and drafted by the top law firms for both Fortune 500 Companies and small cap operations.
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