Arizona Administrative Code
Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION
Chapter 4 - Corporation Commission - Securities
Article 1 - IN GENERAL RELATING TO THE ARIZONA SECURITIES ACT
Section R14-4-106 - Options, Warrants, and Rights to Purchase
Universal Citation: AZ Admin Code R 14-4-106
Current through Register Vol. 30, No. 38, September 20, 2024
A. The grant of options, warrants and rights to purchase to officers, directors and other employees in the form of incentive stock options, warrants or rights to purchase in accordance with Sec. 422A of the Internal Revenue Code of 1954, as amended, will be considered justified.
B. The grant of options, warrants and rights to purchase to officers, directors and promoters not in accordance with Sec. 422A of the Internal Revenue Code of 1954, as amended, will be considered justified if all of the following conditions are met:
1. A certificate or instrument in evidence
thereof is issued prior to the commencement of the proposed public
offering.
2. The number of shares
covered thereby does not exceed 20% of the number of securities to be
outstanding at the completion of the proposed public offering.
3. The initial exercise price is reasonably
related to the public offering price.
4. They do not exceed 10 years in
duration.
5. The prospectus to be
used in connection with the proposed public offering contains a full disclosure
as to the terms and reasons for their grant.
Disclaimer: These regulations may not be the most recent version. Arizona may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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