b'How to Legally Raise Private Moneyinformation similar to that required in SECs Regulation A Offering Cir-cular, Form 1-A, Part II, as prescribed in Regulation A under the Securities Act.It describes such things as the structure of the company, projected dis-tributions to investors and compensation to the manager, the risks of investing, potential conflicts of interest between the companys manag-er and members, and a summary of how the company will be operated, among other things. Some of the most important information included in the PPM are the sources of funds available for the investment including, investor dollars; thedistributionssectionthatdescribesthewaterfallfordistributing profits the company generates from operations or sale of an asset; and the managers compensation. The remaining documents in the offering package may be added as an exhibit or incorporated into the text of the PPM. A subscription agreement will also be provided concurrently with the PPM. The purpose of the subscription agreement is for the investor to provide representations and warranties regarding his/her qualifications and suitability to invest in the offering, and the amount the investor is planning to invest. The subscription agreement should include a means for the manager to acknowledge acceptance of the investor, such as a re-ceipt or certificate. The investment contract must be provided concurrent with the PPM. This document may be an LLC operating agreement, a limited partner-ship agreement, bylaws or a shareholder agreement, or other such agree-ment depending on the type of business that is selling the securities. For promissory note offerings, the promissory note will be used in place of the investment contract. In either case, it is the contractual agreement between you and your investors, describing the rights and duties of each of the parties to the transaction that you provide to investors in exchange for their money. Additional exhibits may be provided by the manager or made available on request. They include such things as an investment summary, which should be a standalone marketing piece that will describe in plain English the details about the investment opportunity and financial projections. Additional exhibits may include other documents you deem important to an investors understanding of the investment and the management 128'