SEC definitions of "accredited investor"

Due to SEC regulations, US residents may subscribe only if they are "accredited investors" according to the definitions below:

The Subscriber is a natural person whose individual net worth, or joint net worth with his or her spouse, exceeds $1,000,000.

The Subscriber is a natural person who had an individual income in excess of $200,000 in each of the last two calendar years, or joint income with his or her spouse in excess of $300,000 in each of such years, and reasonably expects to reach the same income level in this calendar year.

The Subscriber is an entity with total assets in excess of $5,000,000, the Subscriber was not formed for the purpose of investing in any of the CDOs or credit hedge funds included in Creditflux (collectively the "funds"), and the Subscriber is one of the following entities:

• a corporation; or
• a partnership; or
• a limited liability company; or 
• a business trust; or
• a tax-exempt organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, amended.

The Subscriber is a personal (non-business) trust with total assets in excess of $5,000,000, and the Subscriber was not formed for the purpose of investing in any of the Funds. Any decision by the Subscriber to invest in the Funds, if any, will be directed by a person who has such knowledge and experience in financial and business matters so as to be capable of evaluating the risks of an investment in a Fund.

The Subscriber is an employee benefit plan within the meaning of Title 1 of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and the Subscriber satisfies at least one of the following conditions:

• it has total assets in excess of $5,000,000; or
• investment decisions are made by a plan fiduciary, as such term is defined in Section 3(21) of ERISA, and such fiduciary is a bank, savings and loan association, insurance company or registered investment adviser; or
• it is self-directed plan (i.e., a tax-qualified defined contribution plan in which a participant may exercise control over the investment of assets credited to his or her account) and the decision to invest is made solely by the participants investing, and each such participant is an accredited investor.

The Subscriber is an Individual Retirement Account in which all of the participant(s) are accredited investors because each participant has a net worth in excess of $1,000,000 or has had an individual income of in excess of $200,000 (or a joint income with spouse in excess of $300,000) in each of the last two calendar years and reasonably expects to reach the same income level in the current year.

The Subscriber is an employee benefit plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, and the Subscriber has total assets in excess of $5,000,000.

The Subscriber is licensed, or subject to supervision, by U.S. Federal or state examining authorities as a "savings and loan association", "insurance company" or "small business investment company" (as such terms are used and defined in 17 CFR §230.501 (a)) or is an account for which a bank or savings and loan association is subscribing in a fiduciary capacity and over which such fiduciary exercises investment discretion.

The Subscriber is registered with the U.S. Securities and Exchange Commission as a broker or an investment company; or has elected to be treated or qualifies as a "business development company" (within the meaning of Section 2(a)(48) of the Investment Company Act of 1940.

The Subscriber is an entity in which all of the equity owners are qualified under one or more of the foregoing.