Rules and Regulations of the State of Georgia
 

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  • 1. In the address bar, type about:config and press Enter.
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<xmp>.</xmp> <form name="form1" method="post" action="590-4-2?urlRedirected=yes&amp;data=admin&amp;lookingfor=590-4-2" id="form1"> <input type="hidden" name="__VIEWSTATE" id="__VIEWSTATE" value="/wEPDwUKLTY5ODkwOTM2Nw8WAh4Ec3BhbQIOFgJmD2QWAgIFDw8WAh4EVGV4dAUFNiArIDhkZGSX5pR0ZUBCFMladKKSeHuGTv1inA==" /> <input type="hidden" name="__VIEWSTATEGENERATOR" id="__VIEWSTATEGENERATOR" value="EEBB6393" /> <input type="hidden" name="__EVENTVALIDATION" id="__EVENTVALIDATION" value="/wEWCAL0o/TyDgLniKOhBALV5cpNAoa5iIEFAoznisYGAsrv5u0MAsrv4u0MAsrv3u0MFZatBMqWI4Yn7t1XuRaWCyUt5Z8=" /> <div class='popup'> <div class='cnt223'> <div style="margin-bottom:6px;"> <img alt="Rules and Regulations of the State of Georgia" src="/images/new.gif"/> </div> <div class="header"> Terms and Conditions of Agreement for Access to Rules and Regulations of the State of Georgia Website </div> <div class="scroll"> <p>(Note: certain features of this site have been disabled for the general public to prevent digital piracy. If you are an entitled government entity pursuant the Georgia Administrative Procedures Act, <a target="_new" href="http://links.casemakerlegal.com/states/GA/books/Code_of_Georgia/browse?ci=25id=gasos&amp;codesec=50-13-7&amp;title=50&amp;#50-13-7(d)">O.C.G.A.§ 50-13-7(d)</a> contact the State of Georgia's Administrative Procedures Division at 678-364-3785 to enable these features for your location.)</p> <p>To access this website, you must agree to the following: </p> <p> These terms of use are a contract between you and/or your employer (if any), and Lawriter, LLC. </p> <p> You agree that you will not copy, print, or download anything from this website for any commercial use. </p> <p> You agree not to use any web crawler, scraper, or other robot or automated program or device to obtain data from the website.</p> <p> You agree that you will not sell, will not license, and will not otherwise make available in exchange for anything of value, anything that you download, print, or copy from this site.</p> <p> You agree that you will not copy, print, or download any portion of the regulations posted on this site exceeding a single chapter of regulations for sale, license, or other transfer to a third party, except that you may quote a reasonable portion of the regulations in the course of rendering professional advice.</p> <p> If you violate this agreement, or if you access or use this website in violation of this agreement, you agree that Lawriter will suffer damages of at least $20,000. </p> <p> THIS WEBSITE AND ITS CONTENT ARE PROVIDED "AS IS." THE STATE OF GEORGIA AND LAWRITER EXPRESSLY DISCLAIM ALL WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT AND ARE NOT LIABLE TO ANY PERSON FOR ANY ERRORS IN INACCURACIES CONTAINED IN THIS WEBSITE. </p> <p> If you accept these terms enter the information below and click “I AGREE”.</p> </div> <table border="0" style="width: 810px"> <tr> </tr> <tr> <td style="vertical-align: text-top; width: 243px;"> Full Name:</td> <td style="width: 532px; vertical-align:super;"> <input name="firstName" type="text" id="firstName" class="txt" /> <span id="lbl_fname"><font color="Red"></font></span> </td> </tr> <tr><td style="width: 243px"> Human verification: <b> <span id="lblStopSpam">6 + 8</span>&nbsp;= </b></td><td style="width: 532px"> <input name="captcha" type="text" id="captcha" class="txt" /> <span id="lbl_captcha"><font color="Red"></font></span> &nbsp; <input name="sum" type="hidden" id="sum" value="14" /> </td></tr> </table> <input type="submit" name="Button1" value="I AGREE" id="Button1" disabled="disabled" /> <span id="alrtmsg"><font color="Red"></font></span> <input name="v1" type="hidden" id="v1" /> <input name="v2" type="hidden" id="v2" /> <input name="v3" type="hidden" id="v3" /> <p>Privacy Policy: the above information is for internal use only as related to this agreement and will not be sold or distributed.</p> </div> </div> </form> <html> <head runat="server"> <title>GA - GAC</title> <link href="_files/main.css" media="all" rel="Stylesheet" type="text/css" /> <link href="_files/treeview_old.css" media="all" rel="Stylesheet" type="text/css" /> <link href="/_files/popup.css" media="all" rel="stylesheet" type="text/css" /> <script type="text/javascript" src="/_files/treeview.js"></script> <script type="text/javascript" src="/_files/jquery-1.8.0.min.js"></script> <script type="text/javascript" src="/_files/jquery-1.10.2.js"></script> <script type="text/javascript" src="/_files/popup.js"></script> <script type="text/javascript" src="http://code.jquery.com/jquery-1.8.2.js"></script> <script type="text/javascript" src="https://ajax.googleapis.com/ajax/libs/jquery/1.8/jquery.min.js" /> <script type="text/javascript" src="/_files/jquery.popup.js"></script> <script type="text/javascript" src="/_files/jquery.popup.min.js"></script> <script type="text/javascript" src="/_files/ValidateForm.js"></script> <script src="https://code.jquery.com/jquery-1.11.3.js"></script> <link href="/_files/enablejs.css" rel="Stylesheet" type="text/css" /> <link href="/_files/forJavascript.css" rel="Stylesheet" type="text/css" /> <style type="text/css"> .collapse{background-image:url('/images/expcoll_right.png');} .expand{background-image:url('/images/expcoll_down.png');} </style> <script type="text/javascript"> $(document).ready(function(){ $("#History-parent").click(function(){ $("#History-Childs").toggle(); if ($('#History-parent img').hasClass('expand')) { $('#History-parent img').addClass('collapse'); $('#History-parent img').removeClass('expand'); $('#History-parent img').attr('src', '/images/expcoll_right.png'); } else { $('#History-parent img').removeClass('collapse'); $('#History-parent img').addClass('expand'); $('#History-parent img').attr('src', '/images/expcoll_down.png'); } }); $("#History-Childs").hide(); var tocnode=document.getElementById('toc-children'); if (tocnode != null) { if(tocnode.childNodes.length != 0) { document.getElementById("doc-content").style.width="72%"; document.getElementById("toc").style.width="21%"; document.getElementById("toc").style.padding="10px"; } else { document.getElementById('toc').style.display="none"; } } }); function fnsetRDVal(id) { if (id=="y") { document.getElementById("y").value="yes" document.getElementById("n").value="" } else { document.getElementById("n").value="no" document.getElementById("y").value="" } } </script> <script type="text/javascript"> function TermsCon() { var overlay = $('<div id="overlay"></div>'); overlay.show(); overlay.appendTo(document.body); $('.popup2').show(); $('#btnAgree').click(function () { $('.popup2').hide(); $("#overlay").hide(); overlay.appendTo(document.body).remove(); }); $("#btnprint").click(function () { var contents = $("#popupterms").html(); var frame1 = $('<iframe />'); frame1[0].name = "frame1"; frame1.css({ "position": "absolute", "top": "-1000000px" }); $("body").append(frame1); var frameDoc = frame1[0].contentWindow ? 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If you are an entitled government entity pursuant the Georgia Administrative Procedures Act, <a target="_new" href="http://links.casemakerlegal.com/states/GA/books/Code_of_Georgia/browse?ci=25id=gasos&amp;codesec=50-13-7&amp;title=50&amp;#50-13-7(d)">O.C.G.A.§ 50-13-7(d)</a> contact the State of Georgia's Administrative Procedures Division at 678-364-3785 to enable these features for your location.)</p> <p>To access this website, you must agree to the following: </p> <p> These terms of use are a contract between you and/or your employer (if any), and Lawriter, LLC. </p> <p> You agree not to use any web crawler, scraper, or other robot or automated program or device to obtain data from the website. </p> <p> You agree that you will not sell or license anything that you download, print, or copy from this website.</p> <p> THIS WEBSITE AND ITS CONTENT ARE PROVIDED "AS IS." THE STATE OF GEORGIA AND LAWRITER EXPRESSLY DISCLAIM ALL WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT AND ARE NOT LIABLE TO ANY PERSON FOR ANY ERRORS IN INACCURACIES CONTAINED IN THIS WEBSITE. </p> <p> By accessing and/or using this website, you agree to the terms and conditions above. If you do not agree to the terms and conditions above, you must cease accessing and/or using this website and destroy all material obtained from this website without your agreement. </p> </div> </div> <div class="modal-footer"> <input type="button" name="btnAgree" value="Close" id="btnAgree" class="btn-blue noprint" /> <input type="button" name="btnprint" value="Print" id="btnprint" class="btn-blue noprint" /> </div> </div> </div> <div id="main" class="noprint"> <!--class="noprint"--> <div id="header" class="noprint"> <div class="container"> <div class="terms"> NOTICE OF TERMS OF USE OF THIS WEBSITE. 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charset=UTF-16"> </HEAD> <div id="infobar"><a href="javascript:;" accesskey="r" Name="Route" title="Route" class="quickkey"><em class="mnemonic">R</em>oute </a>:<div class="searchtips" style="float:right;margin-right:10px;color: rgb(47, 79, 79);"> <a style="text-decoration:none;color: rgb(47, 79, 79);" title="search tips" name="searchtip" href="../help.aspx#searching" target="_blank"><em class="mnemonic">S</em>earch tips</a></div><ul class="breadcrumb"> <li><a href="/GAC" name="GAC" title="GAC">GA R&amp;R</a></li> <li>&raquo; <a href="/GAC/590" title="590">Department 590</a></li> <li>&raquo; <a href="/GAC/590-4" title="590-4">Chapter 590-4</a></li> <li>&raquo; Subject 590-4-2</li> </ul> </div> </div><div id="doc" class="container"> <div id="doc-content" class="content"> <h1><nllsubject>Subject 590-4-2 EXEMPTIONS</nllsubject></h1> <h2><a href="/GAC/590-4-2-.01" name="590-4-2-.01" title="590-4-2-.01">Rule 590-4-2-.01 Federal Covered Security Notice Filing Requirement for Investment Companies</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.01(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> An issuer of a federal covered security under Section 18(b)(2) of the Securities Act of 1933 (i.e., an investment company that is registered, or that has filed a registration statement, under the Investment Company Act of 1940), that is not otherwise exempt under Sections <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-10&amp;title=10#" target="_newtab">10-5-10</a> through <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-12&amp;title=10#" target="_newtab">10-5-12</a> of the Act, is required to submit a notice filing as set forth in subsection (2) with respect to each security sold before the initial offer of the federal covered security in this state.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.01(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Each required notice filing under this Rule shall include the following: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.01(2)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> All records that are part of the federal registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933, <a href="https://links.casemakerlegal.com/states/us/books/United_States_Code/browse?ci=25&amp;id=gasos&amp;codesec=77&amp;title=15#" target="_newtab">15 U.S.C. Section 77</a> a, <I>et seq.</I>;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.01(2)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A consent to service of process complying with Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-80&amp;title=10#" target="_newtab">10-5-80</a> of the Act; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.01(2)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A non-refundable filing fee of $250.00.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.01(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A notice filing under this Rule is effective for one (1) year commencing on the later of the notice filing or the effectiveness of the Offering filed with the Securities and Exchange Commission. On or before expiration, the issuer may renew a notice filing by filing a copy of those records filed by the issuer with the Securities and Exchange Commission and by paying a renewal fee of $100.00. A previously filed consent to service of process complying with Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-80&amp;title=10#" target="_newtab">10-5-80</a> of the Act may be incorporated by reference in a renewal. A renewed notice filing becomes effective upon the expiration of the filing being renewed and shall be effective for one (1) year after effectiveness.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.01(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign"> This Rule shall apply to all Offerings in which any sale is made within, or to any person in, the State of Georgia on or after the thirtieth (30<SUP>th</SUP>) day following the date of adoption hereof.</td> </tr> </table> <h2><a href="/GAC/590-4-2-.02" name="590-4-2-.02" title="590-4-2-.02">Rule 590-4-2-.02 Federal Covered Security Notice Filing Requirement for Offerings Pursuant to Rule 506</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> An issuer of a federal covered security under Section 18(b)(4)(D) of the Securities Act of 1933, that is not otherwise exempt under Sections <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-10&amp;title=10#" target="_newtab">10-5-10</a> through <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-12&amp;title=10#" target="_newtab">10-5-12</a> of the Act, is required to submit a notice filing pursuant to subsection (2) hereof not later than fifteen (15) days after the first sale of the federal covered security in this State or the first Business Day following the fifteenth (15<SUP>th</SUP>) day after the first sale of the federal covered security in this State if the fifteenth (15<SUP>th</SUP>) day is not a Business Day.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Each required notice filing under this Rule shall include the following: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(2)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A copy of the most recently filed Form D as filed with the SEC; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(2)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Payment of a non-refundable fee of $250.00.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The notice filing and fees required by this Rule may be made electronically as permitted by the Commissioner.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign"> This Rule shall apply to all Offerings in which any sale is made within, or to any person in, the State of Georgia on or after the thirtieth (30<SUP>th</SUP>) day following the date of adoption hereof.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(5)">(5)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Nothing in this exemption is intended to or should be construed as in any way relieving issuers or persons acting on behalf of issuers from providing disclosure to prospective investors adequate to satisfy the antifraud provisions of Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-50&amp;title=10#" target="_newtab">10-5-50</a> of the Act in view of the objective of this section, and the purposes and policies underlying the Act.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.02(6)">(6)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Nothing in this section is intended to relieve broker-dealers or agents from due diligence, suitability, or "know your customer" standards or any other requirements of law otherwise applicable to these persons.</td> </tr> </table> <h2><a href="/GAC/590-4-2-.03" name="590-4-2-.03" title="590-4-2-.03">Rule 590-4-2-.03 Georgia Uniform Limited Offering Exemption</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Pursuant to the authority delegated to the Commissioner by Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-12&amp;title=10#" target="_newtab">10-5-12</a> of the Act, any offer or sale of securities offered or sold in compliance with SEC Rule 505 adopted pursuant to the Securities Act of 1933, including those exempt by application of Rule 508 under the Securities Act of 1933, that is made in accordance with the conditions and limitations set forth below, is determined to be exempt from the registration provisions of Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-20&amp;title=10#" target="_newtab">10-5-20</a> of the Act if: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> No commission, fee, or other remuneration is paid or given, directly or indirectly, to any broker-dealer for soliciting any prospective purchaser in this State unless the broker-dealer is appropriately registered under the Act. It is a defense to a violation of this subsection if the issuer sustains the burden of proof that the issuer did not know and in the exercise of reasonable care could not have known that the person who received a commission, fee, or other remuneration was not properly registered;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The issuer shall file with the Commissioner no later than fifteen (15) Business Days after the receipt of consideration or the delivery of a subscription agreement by an investor in this State that is the result of any offer made in reliance upon this exemption: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(b)1.">1.</a></td> <td valign="top" style="text-align:left" class="leftalign"> A copy of the most recently filed Form D as filed with the SEC, and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(b)2.">2.</a></td> <td valign="top" style="text-align:left" class="leftalign"> A non-refundable filing fee of $250.00.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> In all sales to investors, other than Accredited Investors, in this State, one (1) of the following conditions must be satisfied or the issuer and any person acting on its behalf shall have reasonable grounds to believe, and after making reasonable inquiry shall believe, that one (1) of the following conditions is satisfied: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(c)1.">1.</a></td> <td valign="top" style="text-align:left" class="leftalign"> The investment is suitable for the purchaser upon the basis of facts, if any, disclosed by the purchaser as to the purchaser's other security holdings, financial situation, and needs. For purposes of this condition only, it may be presumed that, if the investment does not exceed ten percent (10%) of the investor's net worth, it is suitable; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(c)2.">2.</a></td> <td valign="top" style="text-align:left" class="leftalign"> The purchaser, either alone or with his or her Purchaser Representative or representatives, has the knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A failure to comply with a term, condition, or requirement of subdivisions (a), (b) or (c) will not result in loss of the exemption from the requirements of Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-20&amp;title=10#" target="_newtab">10-5-20</a> of the Act for any offer or sale to a particular individual or entity if the person relying on the exemption shows: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(d)1.">1.</a></td> <td valign="top" style="text-align:left" class="leftalign"> The failure to comply did not pertain to a term, condition, or requirement directly intended to protect that particular individual or entity;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(d)2.">2.</a></td> <td valign="top" style="text-align:left" class="leftalign"> The failure to comply was insignificant with respect to the Offering as a whole; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(d)3.">3.</a></td> <td valign="top" style="text-align:left" class="leftalign"> A good faith and reasonable attempt was made to comply with all applicable terms, conditions, and requirements of subdivisions (a), (b), and (c).</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(1)(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The Commissioner, at his or her discretion, may waive one or more conditions of this Rule if the Commissioner determines, upon a showing of good cause, that it is not necessary under the circumstances.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> In the event the Offering is to continue pursuant to this exemption more than twelve (12) months after the date of the initial filing made pursuant to this exemption, then it shall be necessary for the issuer to file a renewal notice on or prior to the one year anniversary of the original filing date, containing a completed SEC Form D and a non-refundable filing fee in the amount of $100.00.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The filings and fees required by this Rule may be made electronically if permitted by the Commissioner.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Nothing in this exemption is intended to or should be construed as in any way relieving issuers or persons acting on behalf of issuers from providing disclosure to prospective investors adequate to satisfy the antifraud provisions of Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-50&amp;title=10#" target="_newtab">10-5-50</a> of the Act in view of the objective of this section, and purposes and policies underlying the Act.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(5)">(5)</a></td> <td valign="top" style="text-align:left" class="leftalign"> This exemption shall not apply to those transactions offered and sold in reliance upon 506 of SEC Regulation D or any other Offering or security otherwise exempt under Sections <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-10&amp;title=10#" target="_newtab">10-5-10</a> through <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-12&amp;title=10#" target="_newtab">10-5-12</a> of the Act or Rule or Order of the Commissioner.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.03(6)">(6)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The exemption authorized by this section shall be known and may be cited as the "Georgia Uniform Limited Offering Exemption" or "Georgia ULOE".</td> </tr> </table> <h2><a href="/GAC/590-4-2-.04" name="590-4-2-.04" title="590-4-2-.04">Rule 590-4-2-.04 Non-issuer Transactions Manual Exemption</a></h2> <P>For purposes of exempt non-issuer transactions by or through a broker-dealer registered or exempt from registration under this Chapter, the following securities manuals are designated as nationally recognized securities manuals:</P> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Standard &amp; Poor's Standard Corporations Descriptions,</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Best's Insurance Reports Life-Health;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Mergent's Bank and Finance Manual and News Reports;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Mergent's Industrial Manual and News Reports;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Mergent's Public Utility Manual and News Reports;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(f)">(f)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Mergent's Transportation Manual and News Reports;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(g)">(g)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Mergent's Municipal and Government Manual and News Reports;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(h)">(h)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Mergent's International Manual and News Reports;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(i)">(i)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Fitch's Individual Stock Bulletin;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(j)">(j)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The OTCQX Market;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(k)">(k)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The OTCQB Market; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.04(l)">(l)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Any other securities manual as determined in the discretion of the Commissioner to be a nationally recognized securities manual, which shall require the continuous disclosure by any issuer relying on such manual for the purpose of the registration exemption.</td> </tr> </table> <h2><a href="/GAC/590-4-2-.05" name="590-4-2-.05" title="590-4-2-.05">Rule 590-4-2-.05 Nonpublic Offering Exemption</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> For purposes of calculating the number of purchasers under Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act, the following rules shall apply: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(1)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The following purchasers shall be excluded: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(1)(a)1.">1.</a></td> <td valign="top" style="text-align:left" class="leftalign"> Any person related to the purchaser by blood or marriage having the same principal residence as the purchaser.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(1)(a)2.">2.</a></td> <td valign="top" style="text-align:left" class="leftalign"> Any trust or estate in which a purchaser and any of the persons related to the purchaser (as specified in clause (1) or (3)) collectively have more than fifty percent (50%) of the beneficial interest (excluding contingent interests).</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(1)(a)3.">3.</a></td> <td valign="top" style="text-align:left" class="leftalign"> Any corporation or other organization of which a purchaser and any of the persons related to the purchaser (as specified in clause (1) or (2)) collectively are beneficial owners of more than fifty percent (50%) of the equity securities (excluding directors' qualifying shares) or equity interest.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(1)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A corporation, partnership, or other entity shall be counted as one (1) purchaser; however, if such entity is organized for the specific purpose of acquiring the securities offered and such entity is not an Accredited Investor, then each beneficial owner of equity securities or equity interests in the entity shall count as separate purchasers for purposes of calculating the number of purchasers pursuant to Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act<I>.</I></td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The issuer must satisfy all necessary provisions of Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act for all purchasers whether or not they are included in calculating the number of purchasers. Clients of an investment adviser or customers of a broker-dealer shall be considered the purchasers under Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act regardless of the amount of discretion given to the investment adviser or broker-dealer to act on behalf of the client or customer.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign"> In all Offerings and sales under Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act, the issuer shall make itself available to each purchaser and Purchaser Representative, if any, at a reasonable time prior to the purchase of securities, the opportunity to: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(3)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Ask questions and receive answers concerning the terms and conditions of the Offering;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(3)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Inspect and copy all material documents relating to the Offering; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(3)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Inspect and copy additional information that the issuer possesses or can acquire without unreasonable effort or expense that is necessary to verify the accuracy of information furnished in connection with the Offering.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Offers and sales that are exempt under Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act may not be combined with offers and sales exempt under any other section or provision of the Act, provided, however, that this limitation shall not require an issuer to make an election and an issuer failing to satisfy Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act may claim the availability of any other applicable exemption. In any proceeding involving the availability of an exemption under Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act, the burden of proving compliance with the conditions of the exemption is upon the person claiming the exemption.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(5)">(5)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The exemption provided by Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act is only an exemption for the initial Offering from the registration requirements of Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-20&amp;title=10#" target="_newtab">10-5-20</a> of the Act. It is not an exemption for subsequent offers or resales of the securities from the initial Offering.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.05(6)">(6)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act does not provide an exemption from any section of the Act other than Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-20&amp;title=10#" target="_newtab">10-5-20</a> of the Act, including the antifraud and civil liability provisions.</td> </tr> </table> <h2><a href="/GAC/590-4-2-.06" name="590-4-2-.06" title="590-4-2-.06">Rule 590-4-2-.06 Disqualification from Use of Exemption</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> No exemption under Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(14)" target="_newtab">10-5-11(14)</a> of the Act, the Georgia ULOE or the Invest Georgia Exemption shall be available for any Offering if the issuer; any predecessor of the issuer; any affiliate of the issuer; any member of the board of directors, officer, general partner, limited liability company manager or managing member of the issuer; or any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities pursuant to the Offering: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(1)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Has filed a registration statement which is the subject of any pending proceeding or examination under Section 8 of the Securities Act of 1933, or has been the subject of any refusal order or stop order thereunder within five (5) years prior to the Offering;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(1)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Is subject to any pending proceeding under SEC Rule 258 promulgated under the Securities Act of 1933, or any similar section adopted under Section 3(b) of the Securities Act of 1933, or to an order entered thereunder within five (5) years prior to the Offering;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(1)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Has been convicted within five (5) years prior to the Offering of any felony or misdemeanor in connection with the purchase or sale of any security or involving the making of any false filing related to the offer or sale of any security;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(1)(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Is subject to any order, judgment, or decree of any court of competent jurisdiction or regulatory authority (including non-U.S. regulatory authorities) temporarily or preliminarily restraining or enjoining, or is subject to any order, judgment or decree of any court of competent jurisdiction or regulatory authority entered within five (5) years prior to the Offering permanently restraining or enjoining, such person from engaging in or continuing any conduct or practice in connection with the purchase or sale of any security or involving the making of any false filing related to the offer or sale of any security; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(1)(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Is subject to a United States Postal Service false representation order entered under § <a href="https://links.casemakerlegal.com/states/us/books/United_States_Code/browse?ci=25&amp;id=gasos&amp;codesec=3005&amp;title=39#" target="_newtab">39 U.S.C. 3005</a> within five (5) years prior to the Offering, or is subject to a temporary restraining order or preliminary injunction entered under § <a href="https://links.casemakerlegal.com/states/us/books/United_States_Code/browse?ci=25&amp;id=gasos&amp;codesec=3007&amp;title=39#" target="_newtab">39 U.S.C. 3007</a> with respect to conduct alleged to have violated § <a href="https://links.casemakerlegal.com/states/us/books/United_States_Code/browse?ci=25&amp;id=gasos&amp;codesec=3005&amp;title=39#" target="_newtab">39 U.S.C. 3005</a>.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Paragraph (1) of this section shall not apply: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(2)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Upon a showing of good cause and without prejudice to any other action by the Commissioner, if the Commissioner determines that it is not necessary under the circumstances that an exemption be denied; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(2)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> If the issuer establishes that it did not know, and in the exercise of reasonable care could not have known, that a disqualification existed under paragraph (1) of this section. An issuer will not be able to establish that it has exercised reasonable care unless it has made factual inquiry into whether any disqualifications exist. The nature and scope of the requisite inquiry will vary based on the circumstances of the issuer and the other offering participants.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign"> This Rule shall apply to all Offerings in which any sale is made within, or to any person in, the State of Georgia on or after the thirtieth (30<SUP>th</SUP>) day following the date of adoption hereof.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign"> For purposes of paragraph (a) of this Section, events relating to any Affiliate Of the issuer that occurred before the affiliation arose will not be considered disqualifying if the affiliated entity is not: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(4)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> In control of the issuer; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.06(4)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Under common control with the issuer by a third party that was in control of the affiliated entity at the time of such events.</td> </tr> </table> </td> </tr> </table> <h2><a href="/GAC/590-4-2-.07" name="590-4-2-.07" title="590-4-2-.07">Rule 590-4-2-.07 Not-For-Profit Securities Registration</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> With respect to the offer or sale of a note, bond, debenture, or other evidence of indebtedness, such issuers relying upon the exemption from registration provided in Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-10&amp;title=10#10-5-10(7)" target="_newtab">10-5-10(7)</a> of the Act shall file a notice as set forth in subsections (2) below with the Secretary of State at least ten (10) full business days prior to the first offer of sale pursuant to such claim. Such exemption shall become effective ten (10) full business days after the filing of a complete notice if the Secretary of State has not disallowed the exemption.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The notice required in this Rule shall specify, in writing, the material terms of the proposed offer or sale to include, although not limited to, the following: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(2)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The identity of the issuer;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(2)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The amount and type of securities to be sold pursuant to the exemption;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(2)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A description of the use of the proceeds of the Offering;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(2)(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The person or persons by whom the offers and sales will be made;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(2)(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The offering statement, if any; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(2)(f)">(f)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A consent to service of process complying with Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-80&amp;title=10#" target="_newtab">10-5-80</a> of the Act.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign">All proposed Sales and Advertising Literature to be used in connection with the proposed offer or sale of the securities shall be filed with the Secretary of State only upon request.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign">The Statement of Policy regarding Church Bonds adopted by NASAA on April 14, 2002 (available at <a class="LinkOut" href="http://www.nasaa.org/wp-content/uploads/2011/07/40-Church_Bonds.pdf" target="_blank">http://www.nasaa.org/wp-content/uploads/2011/07/40-Church_Bonds.pdf</a> [File Link Not Available] [File Link Not Available]), and the Statement of Policy regarding Church Extension Fund Securities adopted by NASAA on April 17, 1994, and amended on April 18, 2004, (available at <a class="LinkOut" href="http://www.nasaa.org/wp-content/uploads/2011/07/39-Church_Extension_Fund_Securities.pdf" target="_blank">http://www.nasaa.org/wp-content/uploads/2011/07/39-Church_Extension_Fund_Securities.pdf</a>) shall be applied, as applicable, to the proposed offer or sale of a security for which a notice must be filed pursuant to this Rule. Failure to comply with the provisions of an applicable Statement of Policy promulgated by NASAA shall serve as the grounds for disallowance of the exemption from registration provided by Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-10&amp;title=10#10-5-10(7)" target="_newtab">10-5-10(7)</a> of the Act.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(5)">(5)</a></td> <td valign="top" style="text-align:left" class="leftalign">The Commissioner may also waive any term or condition set forth in this Rule.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.07(6)">(6)</a></td> <td valign="top" style="text-align:left" class="leftalign">The Commissioner may by Order set forth certain requirements for the escrow of proceeds in any Offering under this Rule.</td> </tr> </table> <h2><a href="/GAC/590-4-2-.08" name="590-4-2-.08" title="590-4-2-.08">Rule 590-4-2-.08 Invest Georgia Exemption</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The offer or sale of a security by an issuer shall be exempt from the requirements of Article 3 and Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-53&amp;title=10#" target="_newtab">10-5-53</a> of the Act, and each individual who represents an issuer in an offer or sale shall be exempt from the requirements of Section <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-30&amp;title=10#" target="_newtab">10-5-30</a>, if the offer or sale is conducted in accordance with each of the following requirements: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The issuer of the security shall be a for-profit business entity registered with the Secretary of State.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The transaction shall meet the requirements of the federal exemption for intrastate offerings in either: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(b)1.">1.</a></td> <td valign="top" style="text-align:left" class="leftalign"> Section 3(a)(11) of the Securities Act of 1933, <a href="https://links.casemakerlegal.com/states/us/books/United_States_Code/browse?ci=25&amp;id=gasos&amp;codesec=77&amp;title=15#" target="_newtab">15 U.S.C. § 77</a> c(a)(11), and SEC Rule 147, <a href="https://links.casemakerlegal.com/states/us/books/Code_of_Federal_Regulations/browse?ci=25&amp;id=gasos&amp;codesec=230.147&amp;title=17#" target="_newtab">17 C.F.R. 230.147</a>; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(b)2.">2.</a></td> <td valign="top" style="text-align:left" class="leftalign"> Rule 147A, <a href="https://links.casemakerlegal.com/states/us/books/Code_of_Federal_Regulations/browse?ci=25&amp;id=gasos&amp;codesec=230.147&amp;title=17#230.147(A)" target="_newtab">17 C.F.R. 230.147(A)</a>. </td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The sum of all cash and other consideration to be received for all sales of the security in reliance upon this exemption shall not exceed $5,000,000, less the aggregate amount received for all sales of securities by the issuer within the 12 months before the first offer or sale made in reliance upon this exemption.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The issuer shall not accept more than $10,000 from any single purchaser unless the purchaser is an accredited investor as defined by rule 501 of SEC regulation D, <a href="https://links.casemakerlegal.com/states/us/books/Code_of_Federal_Regulations/browse?ci=25&amp;id=gasos&amp;codesec=230.501&amp;title=17#" target="_newtab">17 C.F.R. 230.501</a>.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> All funds received from investors shall be deposited into a bank or depository institution authorized to do business in Georgia, and all the funds shall be used in accordance with representations made to investors.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(f)">(f)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Before an offer is made in reliance on this exemption, the issuer shall file a notice with the Commissioner in writing or in electronic form. The notice shall specify that the issuer is conducting an offering in reliance upon this exemption and shall contain the names and addresses of the following persons: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(f)1.">1.</a></td> <td valign="top" style="text-align:left" class="leftalign"> The issuer;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(f)2.">2.</a></td> <td valign="top" style="text-align:left" class="leftalign"> All persons who will be involved in the offer or sale of securities on behalf of the issuer; and</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(f)3.">3.</a></td> <td valign="top" style="text-align:left" class="leftalign"> The bank or other depository institution in which investor funds will be deposited.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(g)">(g)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The issuer shall not be, either before or as a result of the offering, an investment company as defined in section 3 of the Investment Company Act of 1940, <a href="https://links.casemakerlegal.com/states/us/books/United_States_Code/browse?ci=25&amp;id=gasos&amp;codesec=80a-3&amp;title=15#" target="_newtab">15 U.S.C. § 80a-3</a>, or subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934, 15 U.S.C. § 78 m and 78o(d).</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(h)">(h)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The issuer shall inform all purchasers that the securities have not been registered under the Act and that the securities are subject to the limitation on resales contained in either: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(h)1.">1.</a></td> <td valign="top" style="text-align:left" class="leftalign"> subsection (e) of SEC Rule 147, <a href="https://links.casemakerlegal.com/states/us/books/Code_of_Federal_Regulations/browse?ci=25&amp;id=gasos&amp;codesec=230.147&amp;title=17#230.147(e)" target="_newtab">17 C.F.R. 230.147(e)</a>, in the manner described in subsection (f) of SEC Rule 147, <a href="https://links.casemakerlegal.com/states/us/books/Code_of_Federal_Regulations/browse?ci=25&amp;id=gasos&amp;codesec=230.147&amp;title=17#230.147(f)" target="_newtab">17 C.F.R. 230.147(f)</a>; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(1)(h)2.">2.</a></td> <td valign="top" style="text-align:left" class="leftalign"> (ii) subsection (e) of SEC Rule 147A, 17 C.F.R. 230.147A(e), in the manner described in subsection (f) of SEC Rule 147A, 17 C.F.R. 230.147A(f). </td> </tr> </table> </td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Offers and sales to controlling persons. This exemption shall not be used in conjunction with any other exemption under these rules or the Act, except for offers and sales to the following persons, who shall not count toward the limitation in paragraph (1)(c) <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(2)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> An officer, director, partner, or trustee or an individual occupying similar status or performing similar functions; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(2)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A person owning 10 percent or more of the outstanding shares of any class or classes of securities</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Disqualifications. This exemption shall not be available if the issuer is subject to a disqualifying event specified in Rule <a title="590-4-2-.06" href="590-4-2-.06">590-4-2-.06</a>.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The exemption authorized by this section shall be known and may be cited as the "Invest Georgia Exemption".</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(5)">(5)</a></td> <td valign="top" style="text-align:left" class="leftalign"> "Individual," for the purpose of paragraph (1) of this Rule, means a natural person, or a corporation, trust, partnership, association, or any other legal entity authorized to do business under the laws of the state of Georgia, that does not: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(5)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> offer investment advice or recommendations;</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(5)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> compensate employees, agents, or other persons for this solicitation of purchases, sales, or offers to purchase the securities exempted by this Rule; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(5)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> take custody of investor funds or securities.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.08(6)">(6)</a></td> <td valign="top" style="text-align:left" class="leftalign"> If the information contained on the notice filed with the Commissioner becomes inaccurate for any reason, the issuer shall file an amendment in writing with the Commissioner within 30 (thirty) days. Said amendment shall be made on a form prescribed by the Commissioner.</td> </tr> </table> <h2><a href="/GAC/590-4-2-.09" name="590-4-2-.09" title="590-4-2-.09">Rule 590-4-2-.09 Request for Transactional Exemption Pursuant to a Fairness Determination</a></h2> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(1)">(1)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Any person seeking the Commissioner's approval, pursuant to O.C.G.A. § <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(9)" target="_newtab">10-5-11(9)</a>, of the fairness of the terms and conditions of the issuance and delivery of securities in exchange for outstanding securities, claims, or property interests, shall make application with the Commissioner as described in paragraph (2) below. The Commissioner may in his sole discretion reject any application. The Commissioner will only consider an application for a proposed exchange transaction where fifty one percent (51%) or more of the persons to whom it is proposed to issue securities or to deliver other consideration in an exchange under O.C.G.A. § <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(9)" target="_newtab">10-5-11(9)</a>are persons who are Georgia residents, and: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(1)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The applicant is a domestic business entity formed, organized or incorporated under the laws of Georgia; or</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(1)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The applicant is a business entity whose headquarters or principal place of business is located in Georgia.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)">(2)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The application and all accompanying documents shall be type-written and submitted to the Commissioner in triplicate. The application shall be signed and dated by the applicant or by a person authorized to act in the applicant's behalf. The application shall request that the Commissioner conduct a hearing pursuant to O.C.G.A. § <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(9)" target="_newtab">10-5-11(9)</a> and shall contain the following information: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The full legal name, state of incorporation, and principal office address of any person proposing to issue securities or deliver other consideration in the proposed exchange.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A description of the proposed transaction, including but not limited to all parties to the transaction, all major lines of business engaged in by such parties, expected benefits of the transaction, a chronological description of the transaction to date, a projected timetable and description of all events necessary to consummate the transaction, all legal and financial advisors providing advice to any party to the transaction, and identification of any persons providing any valuation or fairness opinions to any party with respect to the securities or other consideration to be issued or exchanged in the proposed transaction.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A description of the securities or other consideration to be issued or delivered in the proposed exchange.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A description of the bona fide securities, claims or property interests for which the securities or other consideration referred to in paragraph (2)(c) are to be exchanged, including the full legal name, state of incorporation, and principal office address of the issuer of any such bona fide securities.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A brief statement of the terms and conditions under which the securities or other consideration referred to in paragraph (2)(c) will be issued and exchanged or delivered and exchanged for the bona fide securities, claims or property interests.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(f)">(f)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A list of the full legal names, addresses, and percentage interest owned of all persons to whom the securities will be issued or other consideration delivered in the exchange. If some or all of such persons are to receive the securities or other consideration by virtue of their ownership of shares of stock in a corporation, the applicant may comply with this requirement by submitting a list which shows the shareholders of the corporation and the number of shares and percentage of total shares held by each shareholder as of a date not more than 30 days prior to the filing of the application.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(g)">(g)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A statement setting forth the distinct number of and percentage total of all persons named on the list to be provided pursuant to paragraph (2)(f) who are residents of Georgia.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(h)">(h)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A statement setting forth proposed findings of fact which the applicant requests that the Commissioner find and incorporate in the Commissioner's written decision with respect to the application.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(i)">(i)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A statement as to whether the applicant intends to rely on the exemption from federal securities registration provided for in Section 3(a)(10) of the Securities Act of 1933, <a href="https://links.casemakerlegal.com/states/us/books/United_States_Code/browse?ci=25&amp;id=gasos&amp;codesec=77&amp;title=15#" target="_newtab">15 U.S.C. §77</a> c(a)(10).</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(2)(j)">(j)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Any additional information which the applicant desires the Commissioner to consider. The Commissioner may require the applicant to submit other information in addition to the information required by this Rule. The Commissioner may also waive or modify the requirements of this Rule by allowing the applicant to submit less information than this Rule would otherwise require.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)">(3)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The application shall be accompanied by the following documents: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> All written agreements, and accompanying appendices, exhibits and/or attachments, governing the proposed transaction.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> All press releases or other media announcements regarding the proposed transaction disseminated by any party to the proposed transaction.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A draft copy of the notice of the requested hearing to be held by the Commissioner in connection with the application that the applicant plans to mail to all persons to whom the applicant proposes to issue securities or to deliver other consideration in the proposed transaction.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> An audited balance sheet, prepared in accordance with generally accepted accounting principles applicable in the United States ("US GAAP"), as of the close of the most recent fiscal year of any person whose securities will be issued or exchanged in the proposed transaction.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> An audited income statement, prepared in accordance with US GAAP, for the most recent fiscal year of any person whose securities will be issued or exchanged in the proposed transaction.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(f)">(f)</a></td> <td valign="top" style="text-align:left" class="leftalign"> All valuation or fairness opinions identified in paragraph (2)(c), including all materials supporting any parties' valuation of the securities or other consideration to be issued or exchanged in the proposed transaction.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(g)">(g)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Any other documents which the applicant desires the Commissioner to consider. The Commissioner may require the applicant to submit other documents in addition to the documents required by this Rule. The Commissioner may also waive or modify the requirements of this Rule by allowing the applicant to submit fewer documents other than those which this Rule would otherwise require.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(h)">(h)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A non-refundable filing fee of five hundred dollars ($500.00).</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(i)">(i)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A written undertaking to pay, upon receipt of an invoice from the Commissioner, the fees and costs required by paragraph (4)(d) of this Rule.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(3)(j)">(j)</a></td> <td valign="top" style="text-align:left" class="leftalign"> A completed and notarized Form U-2, Uniform Consent to Service of Process.</td> </tr> </table> </td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)">(4)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The procedure following application shall be as follows: <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)(a)">(a)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The Commissioner may inform the applicant of any deficiencies in the application or of any additional information or documents required and may require the applicant to amend or resubmit the application prior to setting a date for the hearing.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)(b)">(b)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The Commissioner, in his sole discretion, may retain an independent valuation consultant to review all of the materials submitted in paragraph (2)(f) of this Rule.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)(c)">(c)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Upon the filing of an application complying with the provisions of this Rule, correction of any deficiencies and/or amendment of the application as necessary, and receipt of all materials requested by the Commissioner, the Commissioner will, within a reasonable period of time, inform the applicant of the date, hour and place of the hearing.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)(d)">(d)</a></td> <td valign="top" style="text-align:left" class="leftalign"> Upon the Commissioner's issuance of a Notice of Hearing pursuant to Rule <a title="590-4-6-.07" href="590-4-6-.07">590-4-6-.07</a>, the applicant shall remit to the Commissioner a non-refundable fairness proceeding fee of seven thousand five hundred dollars ($7,500.00) and shall reimburse the Commissioner for all costs incurred by the Commissioner in connection with the fairness proceeding, including any costs in connection with the retention of any independent valuation consultant.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)(e)">(e)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The applicant shall mail by United States Mail, Postage Prepaid, notice of such hearing to all persons to whom it is proposed to issue securities or to deliver such other consideration in such exchange, not less than 14 days prior to such hearing. The applicant shall provide to the Commissioner, on or before the date of the hearing, a certification that the notice of hearing has been so mailed.</td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)(f)">(f)</a></td> <td valign="top" style="text-align:left" class="leftalign"> An evidentiary hearing shall be held by the Commissioner pursuant to Chapter 590-4-6 of the Commissioner's Rules, and the Georgia Administrative Procedure Act, O.C.G.A. § <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=50-13-1&amp;title=50#" target="_newtab">50-13-1</a>, <I>et seq.</I></td> </tr> </table> <table border="0" width="100%" cellspacing="4" cellpadding="4"> <tr> <td valign="top" width="1%" style="white-space:nowrap;text-align:left;width:18px;"><a style="white-space:nowrap;" name="590-4-2-.09(4)(g)">(g)</a></td> <td valign="top" style="text-align:left" class="leftalign"> The applicant shall have the burden of proving the applicability of its claim for exemption under O.C.G.A. § <a href="https://links.casemakerlegal.com/states/ga/books/Code_of_Georgia/browse?ci=25&amp;id=gasos&amp;codesec=10-5-11&amp;title=10#10-5-11(9)" target="_newtab">10-5-11(9)</a>.</td> </tr> </table> </td> </tr> </table> <h2><a href="/GAC/590-4-2-.10" name="590-4-2-.10" title="590-4-2-.10">Rule 590-4-2-.10 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.11" name="590-4-2-.11" title="590-4-2-.11">Rule 590-4-2-.11 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.12" name="590-4-2-.12" title="590-4-2-.12">Rule 590-4-2-.12 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.13" name="590-4-2-.13" title="590-4-2-.13">Rule 590-4-2-.13 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.14" name="590-4-2-.14" title="590-4-2-.14">Rule 590-4-2-.14 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.15" name="590-4-2-.15" title="590-4-2-.15">Rule 590-4-2-.15 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.16" name="590-4-2-.16" title="590-4-2-.16">Rule 590-4-2-.16 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.17" name="590-4-2-.17" title="590-4-2-.17">Rule 590-4-2-.17 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.18" name="590-4-2-.18" title="590-4-2-.18">Rule 590-4-2-.18 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.19" name="590-4-2-.19" title="590-4-2-.19">Rule 590-4-2-.19 Repealed</a></h2> <h2><a href="/GAC/590-4-2-.20" name="590-4-2-.20" title="590-4-2-.20">Rule 590-4-2-.20 Repealed</a></h2> </div> </div> </HTML> </div> <div id="toc" class="sidebar noprint"> <ul id="toc-children" class="children"><li><a href="/GAC/590-4-2-.01" name="590-4-2-.01" title="590-4-2-.01">Rule 590-4-2-.01 Federal Covered Security Notice Filing Requirement for Investment Companies</a></li><li><a href="/GAC/590-4-2-.02" name="590-4-2-.02" title="590-4-2-.02">Rule 590-4-2-.02 Federal Covered Security Notice Filing Requirement for Offerings Pursuant to Rule 506</a></li><li><a href="/GAC/590-4-2-.03" name="590-4-2-.03" title="590-4-2-.03">Rule 590-4-2-.03 Georgia Uniform Limited Offering Exemption</a></li><li><a href="/GAC/590-4-2-.04" name="590-4-2-.04" title="590-4-2-.04">Rule 590-4-2-.04 Non-issuer Transactions Manual Exemption</a></li><li><a href="/GAC/590-4-2-.05" name="590-4-2-.05" title="590-4-2-.05">Rule 590-4-2-.05 Nonpublic Offering Exemption</a></li><li><a href="/GAC/590-4-2-.06" name="590-4-2-.06" title="590-4-2-.06">Rule 590-4-2-.06 Disqualification from Use of Exemption</a></li><li><a href="/GAC/590-4-2-.07" name="590-4-2-.07" title="590-4-2-.07">Rule 590-4-2-.07 Not-For-Profit Securities Registration</a></li><li><a href="/GAC/590-4-2-.08" name="590-4-2-.08" title="590-4-2-.08">Rule 590-4-2-.08 Invest Georgia Exemption</a></li><li><a href="/GAC/590-4-2-.09" name="590-4-2-.09" title="590-4-2-.09">Rule 590-4-2-.09 Request for Transactional Exemption Pursuant to a Fairness Determination</a></li><li><a href="/GAC/590-4-2-.10" name="590-4-2-.10" title="590-4-2-.10">Rule 590-4-2-.10 Repealed</a></li><li><a href="/GAC/590-4-2-.11" name="590-4-2-.11" title="590-4-2-.11">Rule 590-4-2-.11 Repealed</a></li><li><a href="/GAC/590-4-2-.12" name="590-4-2-.12" title="590-4-2-.12">Rule 590-4-2-.12 Repealed</a></li><li><a href="/GAC/590-4-2-.13" name="590-4-2-.13" title="590-4-2-.13">Rule 590-4-2-.13 Repealed</a></li><li><a href="/GAC/590-4-2-.14" name="590-4-2-.14" title="590-4-2-.14">Rule 590-4-2-.14 Repealed</a></li><li><a href="/GAC/590-4-2-.15" name="590-4-2-.15" title="590-4-2-.15">Rule 590-4-2-.15 Repealed</a></li><li><a href="/GAC/590-4-2-.16" name="590-4-2-.16" title="590-4-2-.16">Rule 590-4-2-.16 Repealed</a></li><li><a href="/GAC/590-4-2-.17" name="590-4-2-.17" title="590-4-2-.17">Rule 590-4-2-.17 Repealed</a></li><li><a href="/GAC/590-4-2-.18" name="590-4-2-.18" title="590-4-2-.18">Rule 590-4-2-.18 Repealed</a></li><li><a href="/GAC/590-4-2-.19" name="590-4-2-.19" title="590-4-2-.19">Rule 590-4-2-.19 Repealed</a></li><li><a href="/GAC/590-4-2-.20" name="590-4-2-.20" title="590-4-2-.20">Rule 590-4-2-.20 Repealed</a></li></ul> </div> </div> <!--content ends here--> <div id="footer" class="noprint"><span class="footer">Copyright &copy; 2019 Lawriter LLC - All rights reserved.</span>| <a href="mailto:support@casemakerlegal.com?subject=Rules and Regulations of the State of Georgia">Email Us</a> | 844-838-0769 | <a href="http://livechat.casemakerlegal.com/client.php?locale=en" target="_blank" onclick="if(navigator.userAgent.toLowerCase().indexOf('opera') != -1 && window.event.preventDefault)window.event.preventDefault();this.newWindow = window.open('http://livechat.casemakerlegal.com/client.php?locale=en&url='+escape(document.location.href)+'&referrer='+escape(document.referrer), 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