Illinois Administrative Code
Title 50 - INSURANCE
Part 913 - SECURITIES REGULATION
Section 913.90 - Stock Option Plans
Current through Register Vol. 48, No. 12, March 22, 2024
The Director shall be guided in the granting of a permit to issue shares to implement stock option plans by the following:
a) Any stock option or purchase plan which meets the requirements of Sections 422, 423 or 424 of the Internal Revenue Code of 1954, as hereafter may be amended, shall be deemed prima facie reasonable by the Director, provided however, that the number of shares to be granted pursuant to such a plan, together with the number of shares in respect of which unexercised options are outstanding or may be granted under any and all other option plans of the company, shall in no event exceed 10% of the total shares outstanding. The burden shall be upon the applicant to prove that such plan complies with the provisions of said Sections 422, 423 or 424, as amended, and such proof shall be made prior to the issuance of any Permit in connection with the execution of such plan.
b) Any stock option plan which does not comply with the Internal Revenue Code as referred to above, shall be approved by the Director only upon proof that the following conditions have been met:
c) The Director may waive any requirements for option plans under Section 913.90(b) in those cases in which he finds that valid contractual rights were acquired prior to the effective date of this Part, under plans which had been previously approved by the Director.