<html> <head> <title>Rule 20:06:04:25 Exemption from restrictions on profits of acquisitions of shares of stock and stock options under certain stock bonus, stock option, or similar plans.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:04:25"> <META NAME="Description" Content="Administrative Rules 20:06:04:25 Exemption from restrictions on profits of acquisitions of shares of stock and stock options under certain stock bonus, stock option, or similar plans."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:06:04:25.&nbsp;&nbsp;Exemption from restrictions on profits of acquisitions of shares of stock and stock options under certain stock bonus, stock option, or similar plans.</b> Any acquisition of shares of stock, other than stock acquired upon the exercise of an option, warrant or right, pursuant to a stock bonus, profit sharing, retirement, incentive, thrift, savings or similar plan, or any acquisition of a qualified or a restricted stock option pursuant to a qualified or a restricted stock option plan, or a stock option pursuant to an employee stock purchase plan, by a director or officer of an insurer issuing such stock or stock option shall be exempt from the operation of SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-71">58-5-71</A> to <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-73">58-5-73</A>, inclusive, if the plan has been approved, directly or indirectly by the:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Affirmative votes of the holders of a majority of the securities of such insurer present, or represented, and entitled to vote at a meeting duly held in accordance with the applicable laws of the state of South Dakota; or</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;Written consent of the holders of a majority of the securities of such insurer entitled to vote;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;Such vote or written consent (subdivisions 20:06:04:05(1) and (2)) is to be solicited substantially in accordance with chapter 20:06:03. For the purposes of this subdivision, the term &quot;insurer&quot; includes a predecessor corporation if the plan or obligations to participate thereunder were assumed by the insurer in connection with the succession.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 4 SDR 6, effective August 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-73">58-5-73</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-77">58-5-77.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-71">58-5-71</A> to <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-73">58-5-73.</A></p> </div> </body> </html>