Effective July 9, 2007, the California Corporations Commissioner adopted amendments to the compensatory plan regulations under the California Corporate Securities Law of 1968. The amended rules eliminate many restrictive requirements, such as minimum vesting and pricing, to provide greater flexibility to companies in drafting compensatory benefit plans such as stock option or stock purchase plans.
Under the California Corporations Code (the "Code") Section 25110, it is unlawful for an issuer to offer or sell any securities in California unless the securities have been qualified or are exempt from the qualification requirements. In California, the definition of "securities" includes an option to purchase an issuer’s securities. Pursuant to Section 25102(o) of the Code, the offer or sale of a security that is exempt under Rule 701 ("Rule 701") of the Securities Act of 1933 is also exempt from the California qualification requirements if the security is granted pursuant to a plan or
