A subscription agreement (Sub Docs) is an application by an investor to join an SPV (LLC or LP), and it is also used to sell stock shares in a private company. All SPV investors need to be accepted by the SPV Organizer. The investor candidate fills out a form documenting the investor’s suitability for the investment in the SPV. SPVs invest in companies and other private assets by completing a subscription agreement, which is an agreement between the issuing company or group and the investor documenting how many shares are sold and the price of the shares. Sub Docs are one of the three sets of documents that an SPV uses to govern the SPV and the members (investors). The Sub Docs are filled out by the investor and contains key investor representations. The filling out of the Sub Docs by the investors is the reason for the term “subscription” to describe an investors investment into an SPV.
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