Unit Purchase Agreement (LLC Interest; Private Offering)

by Practical Law Corporate & Securities

A Standard Document providing a model unit purchase agreement for the purchase and sale of units in a limited liability company (LLC) through a private offering. This Standard Document can be utilized as an alternative to a subscription agreement, establishing the specific terms and conditions under which an accredited investor acquires a minority, non-managing interest in the LLC. It addresses the unique aspects of a transaction involving the sale of LLC units, detailing the fundamental obligations and rights of both the investor and the company. This agreement provides a framework for navigating the investment, covering key considerations essential to structuring the deal and formalizing the investor's relationship with the LLC. It is designed to streamline the process of securing investment from accredited investors by clearly defining the parameters of the sale of interests.