<html> <head> <title>Rule 20:08:03:16 Employee of the issuer exemption.</title> <META NAME="Keywords" Content="Administrative Rules 20:08:03:16"> <META NAME="Description" Content="Administrative Rules 20:08:03:16 Employee of the issuer exemption."> <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>20:08:03:16.&nbsp;&nbsp;Employee of the issuer exemption. </b>An employee who represents an issuer and who effects transactions in the issuer's securities exempted by SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=47-31B-202">47-31B-202(11)</A> and <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=47-31B-202">47-31B-202(14)</A> is exempt from agent registration under SDCL 47-31B-402(a) if the employee does not receive a commission or other remuneration for making offers or sales of the issuers securities.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this rule, a managing member of a limited liability company or a general partner of the issuer, and officers and directors of the issuer, are deemed to be employees of the issuer.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 30 SDR 211, effective July 1, 2004.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=47-31B-102">47-31B-102(2)</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=47-31B-402(b)(a)(9)">47-31B-402(b)(a)(9).</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=47-31B-102">47-31B-102(2)</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=47-31B-402(a)(9)">47-31B-402(a)(9).</A></p> </div> </body> </html>