1. (a) There is no variance in the net proceeds to the issuer from the sale of the securities to different purchasers of the same offering;
2. (b) All purchasers of the securities are informed of the available quantity discounts;
3. (c) The same quantity discounts are allowed to all purchasers of all securities which are part of the offering;
4. (d) The minimum amount of securities on the purchase of which quantity discounts are allowed is not less than $10,000;
5. (e) The variance in the price of the securities results solely from a different range of commissions, no discounts are allowed to any group of purchasers, and all discounts allowed are based on a uniform scale of commissions;

6. (f) The applicant for qualification of the securities justifies allowance of the proposed quantity discounts by a showing that the aggregate amount thereof does not exceed, and that the measure of such discounts is reasonably related to, the saving of selling expense to be achieved in the sale of the quantities of securities for which such discounts are allowed.

   The foregoing rule does not prohibit a quantity discount offered by an investment company registered under the Investment Company Act of 1940, as permitted by the Regulations under that Act, and does not apply to any employee option or stock purchase plans.

No qualification will be approved for the sale of securities pursuant to a contract whereby the price of the securities sold varies among different purchasers of the same offering or whereby such price varies as a result of the quantity of securities sold, except that in the case of quantity discounts qualification may be approved provided that there is compliance with all of the following six conditions.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Amendment filed 5-10-73; effective thirtieth day thereafter (Register 73, No. 19).

2. Amendment filed 5-3-83; effective thirtieth day thereafter (Register 83, No. 19).