Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

The offer and sale of securities in California is regulated by the California Corporations Commissioner under the California Securities Law.  On July 9, 2007, the California Corporations Commissioner amended the compensatory benefit plan rules under the California Corporate Securities Law of 1968. The existing regulations were inconsistent with other states and the federal securities laws.

The amended regulations were effective as of July 9, 2007. Satisfying the rules for exemption of offers and sales of securities in California will be easier.

The amendments include:  revising the definition of the persons eligible to receive awards of stock options so it is consistent with Rule 701; eliminating the requirement that the total number of securities issuable under a plan is limited to no more than 30 percent of the then outstanding securities of a company; and eliminating the requirement that the exercise price or purchase price of securities be at least 85 percent of the fair value at the time of grant or issuance.