Membership Ownership & Trade Requirements
Minimum Ownership: 5,000 Membership Interests
Minimum Sale or Purchase: 1,000 Membership Interests (5,000 if a new member)
Ø Any new Buyer of at least 5,000 Membership Interests will become a member of SMA subject to satisfaction of the terms and condition of the Member Control Agreement.
Ø The Seller of a Membership Interest in SMA is required to pay Variable Investment Advisors, Inc. a fee of two percent (2%) of the gross sales price or a minimum fee per transaction of $175.00, to be paid out of the Seller’s proceeds at the time of closing.
Ø The Buyer of a Membership Interest in SMA is required to pay SMA a transfer processing fee of $200.00 per transfer.
Ø Subject to the Company's Membership Interests Transfer System, including all restrictions and conditions on transfer, matches of SMA’s Membership Interests are subject to the following:
· Matches in January, February and March are effective no earlier than April 1st
· Matches in April, May and June are effective no earlier than July 1st
· Matches in July, August and September are effective no earlier than October 1st
· Matches in October, November and December are effective no earlier than January 1st.
Further, matches of Membership Interests in SMA between a Buyer and Seller are not effective prior to 45 days after the offer to sale has been posted. Offers to sell posted during the last 45 days of any quarter which are matched during the same quarter are not effective until the first day of the quarter following the subsequent quarter.
Ø Before a match is effective, the Seller must qualify for an exemption from registration under federal securities laws and the securities law of the state in which the Seller resides. A Seller is strongly encouraged to consult an attorney or advisor to determine the exemption on which to rely.
Ø All transfers and trading of Membership Interests in SMA are subject to the terms and conditions of SMA’s Member Control Agreement and Membership Interests Transfer System.