2. MEETINGS. Meetings will be held online using electronic mail (e-mail), collective addresses (aliases) and through information provided by a homepage on the World-Wide Web (WWW) throughout the month.
3. OBJECTIVE. HST's objective is to educate the partners in the area of investing, to increase the value of the portfolio each and every year and to foster in the partners a long-term perspective in accumulation ofassets.
4. MEMBERS. Members of High Seas Traders are past or present Commissioned Officers of the sea services of the United States Armed Forces, with the exception of the Internet provider. Each partner, or his proxy, is required to have an e-mail address and the ability to view HST's WorldwideWeb (WWW) homepage. Partners who fail to maintain email access with the club for a period of more than 2 months will be considered inactive for the purposes of voting; however, their accounts will not be closed unless they also meet the criteria of para 9.d.
5. OFFICERS. The following Club Officers will be voted upon to representand manage HST, their term of office being one calendar year:
* President - overall management of HST and its operations; provides strategic leadership
* Vice President - assists the President; manages training and assignment of partners to Sections (see below)
* Treasurer - conducts investment transactions; manages the investment capital account
* Secretary - conducts administrative matters; manages the administrative capital account
An asterisk (*) denotes those Officers with access to HST's capital accounts who, therefore, must be bonded.
6. VOTING PROCEDURES. For purposes of voting, each "active" partner, as described below, will receive one vote regardless of the portion of HST's assets that partner has contributed.
7. INVESTMENT VEHICLES. Investment Vehicles (IVs) are stocks, bonds and other securities that HST has purchased or may consider purchasing. Any partner may recommend an IV to the President/Vice President for consideration of purchase by HST. The Vice President will assign the recommendation to a partner(s) for analysis. The partner will analyze the IV, then prepare and post an analysis, SSG (abbreviated format) and recommendation on the IV's investment potential on the Homepage including, if warranted, a nomination for purchase by HST. If the nomination for purchase is seconded by another partner, that IV will be voted upon during the next voting cycle. Any partner may provide comments/issues regarding that IV, not to exceed one page, prior to, or during, voting. During the next voting cycle, the President or Vice President will call for a vote by the partners to consider acquisition of that IV on or about the 22nd of the month and ending on the last day of the month; a 'yes' vote to place that IV on HST's watch list or a 'no' vote to keep the IV off the watch list. To be included onto the watch list, the IV must receive at least a 2/3 majority (66.67%) of the votes cast.
8. WATCH LIST AND PURCHASES. The "watch list" is composed of IVs that HST has purchased or has demonstrated a desire to purchase through a formal vote. The watch list is used to track the buy, hold and sell positions of HST's holdings and possible acquisitions. Once an IV is on the watchlist, the designated partner continues to maintain the SSG of the IV, providing updated information for the best utilization of HST's investments. Although on the watch list, an IV will not normally be purchased until its price is within the "buy-range," as delineated on the SSG. The Treasurer may then purchase the most cost effective IV at the earliest opportunity after providing the partners with 48 hour notification of intent to acquire the IV. The Treasurer may utilize approximately one-half of monthly investment capital on new purchases and one-half may beapplied to current holdings.
9. PAYMENTS AND INVESTMENTS.
a) The initial administrative fee for each partner shall be $75.00. Future yearly operating dues will be determined by extrapolating administrative costs from the previous year, less administrative assets, equally divided by the number of partners. The Internet provider shall be exempt from the above administrative fee and dues.
b) Monthly investments are conducted via direct deposit or electronic funds transfer of no less than $50.00 to HST's Navy Federal Credit Union (NFCU) account. Receipt of a payment in this form constitutes a payment to permit voting for that month (no prepayment of future months shall be allowed) and makes that partner an "active" partner for that month. If a change in the amount of the monthly deposit is desired, the partner must notify the Treasurer at the earliest opportunity regarding the amount and commencement date of the change.
c) An individual payment for an amount in addition to the partner's monthly deposit may be made once per fiscal quarter (during the first week of January, April, July and October).
d) Any partner who does not make a payment for three (3) consecutive months shall be considered in default and subject to a vote for termination of membership.
10. ANNUAL AUDIT. An internal committee, chaired by one partner, shall conduct and complete an annual audit prior to 31 January of each year.
11. FUTURE CLUB AGREEMENT AND OUTLINE CHANGES. Changes may be made to the"Partnership Agreement" and/or this "Club Outline" by a resolution voted upon by "active" club partners. Any "active" partner may submit a resolution to the President and/or Vice President. The resolution must be seconded by another "active" partner before it is brought up for a vote by the partners. All resolutions which have been properly submitted and seconded will be put up for a vote on or about the 22nd of that month. For a resolution to pass, a 2/3 majority (66.67%) of eligible votes must be cast in favor of the resolution. Any resolution that passes will take effect on or about the 22nd of the following month and cannot be petitioned for reversal for a minimum of thirty days after taking effect. A resolution may not be submitted in more than two (2) consecutive months, and may not be submitted in more than three (3) times in any calendar year.
I have read both the "Partnership Agreement" and the above "Club Outline", understand them, and agree to abide by them.
Name: ______________________________________
Date: _______________________________________
Signed: _____________________________________
Beneficiary: __________________________________
SSN: _______________________________________
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