STATE OF OKLAHOMA
DEPARTMENT OF SECURITIES
First National Center, Suite 860
120 North Robinson
Oklahoma City, Oklahoma 73102
FINDINGS OF FACT
1. Pursuant to Section 1-402 of the Oklahoma Uniform Securities Act of 2004 (“OUSA”), Okia.
Stat. tit. 71, §§ 1-101 - 1-701 (Supp. 2003), effective July 1, 2004, an individual who represents the issuer in an offering
must be registered as an agent of the issuer unless otherwise exempt. Section 1-402 provides several exemptions from agent
registration. However, none of the exemptions are based upon meeting the conditions of Section 660:11-11-43 of the Oklahoma
Administrative Code (“OAC”), an exemption from state registration requirements.
2. Section 401(b)(10)(B) of the Oklahoma Securities Act (“OSA”), OkIa. Stat. tit. 71, § 1-413,
501, 701-703 (2001 & Supp. 2003), repealed effective July 1, 2004, provided a transactional securities exemption similar to
the exemption in OAC § 660:11-11-43. Section 201(a) of OSA also required that an individual representing the issuer in an
offering must be registered as an agent of the issuer unless exempt. Section 201 (a)(3)(C) of OSA specifically provided an
exemption from registration as an agent for an individual who met certain conditions in an offering conducted in compliance
with Section 401 (b)(1 0)(B) of OSA.
3. The exemption pursuant to Section 201(a)(3)(C) of OSA was not available if the individual
would receive a commission or if the individual had been the subject of certain securities actions by a securities
regulatory agency or a court of competent jurisdiction.
4. The Administrator takes notice that there are certain limited offerings where the requirement
of issuer agent registration would be highly burdensome and is not necessary for the protection of investors.
5. The Administrator has determined to provide exemption from agent registration for a limited
class of persons who represent an issuer in an offering exempt pursuant to OAC §660:11-11-43 and Section 1-203 of OUSA.
1. Section 1-402 of OUSA provides in pertinent part:
A. It is unlawful for an individual to transact business in this state as an agent unless the individual is
registered under this act as an agent or is exempt from registration as an agent under subsection B of this section.
B. The following individuals are exempt from the registration requirement of subsection A of this section:
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9. Any other individual exempted by rule adopted or order issued under this act.
2. Section 1-203 of OUSA provides:
A rule adopted or order issued under this act may exempt a security, transaction, or offer; a rule under this act
may exempt a class of securities, transactions, or offers from any or all of the requirements of Sections 10 and 32 of
this act [Sections 1-301 and 1-504 of OUSA]; and an order under this act may waive, in whole or in part, any or all of
the conditions for an exemption or offer under Sections 6 and 7 of this act [Sections 1-201 and 1-202 of OUSA].
3. OAC § 660:11-11-43 provides in pertinent part:
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(b) Terms of the exemption. By authority delegated to the Administrator in Section 1-203 of the Securities Act, the
following transactions are determined to be classes of transactions for which registration is not necessary or
appropriate for the protection of investors and are exempt from Sections 1-301 and 1-504 of the Securities Act: any
offer or sale of securities exempted from Section 5 of the 1933 Act pursuant to Section 4(6) thereof; or any offer or
sale of securities offered or sold in compliance with the 1933 Act, Regulation D, Rules 230.504 and/or 230.505,
including any offer or sale made exempt by application of Rule 508(a); provided the following further conditions and
limitations are satisfied:
(1) offering expenses do not exceed those allowed for securities registered pursuant to the provisions of this title;
(2) no general advertising or general solicitation is used; and
(3) the issuer files with the Administrator no later than fifteen (15) days after the first sale of securities
subject to the Securities Act one (1) signed copy of the notice of sales on Form D as most recently filed with the SEC,
including the Appendix thereto. Such filing shall also include the following:
(A) an undertaking by the issuer to furnish to the Administrator, upon written request, the information
furnished by the issuer to offerees;
(B) unless otherwise available, a consent to service of process on Form U-2 and (if applicable) Form U-2A; and
(C) the notice of exemption fee required by Section 1-612.A.12 of the Securities Act.
4. Section 1-605 of OUSA provides in pertinent part:
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B. Under this act, a rule or form may not be adopted or amended, or an order issued or amended, unless the
Administrator finds that the rule, form, order, or amendment is necessary or appropriate in the public interest or for
the protection of investors and is consistent with the purposes intended by this act.
CONCLUSION OF LAW
It is appropriate and in the public interest, and consistent with the purposes fairly intended
by the policy and provisions of OUSA, to exempt the persons described below from agent registration.
NOW THEREFORE, BASED UPON AND SUBJECT TO THE FOREGOING, IT IS HEREBY ORDERED that effective
July 1, 2004, an individual shall be exempt from registration as an agent if:
(a) the offering is exempt pursuant to OAC § 660:11-11-43;
(b) the individual is not compensated in connection with the agent’s participation by the payment of commissions or
other remuneration based, directly or indirectly, on transactions in those securities; and
(c) such individual has not within the past five (5) years been subject to the following in connection with a
violation of a state or federal securities law or regulation: an order denying, suspending or revoking registration or
a cease and desist order of the Administrator; any similar order, judgment, or decree by another state securities
agency, the United States Securities and Exchange Commission, or any self-regulatory securities organization; or an
order of any court of competent jurisdiction temporarily, preliminarily or permanently enjoining such person.
WITNESS the Official Seal of the Oklahoma Department of Securities at Oklahoma City, Oklahoma.
|/s/ IRVING L. FAUGHT
|IRVING L. FAUGHT, ADMINISTRATOR OF THE
OKLAHOMA DEPARTMENT OF SECURITIES