PURPOSE: This rule provides an exemption for securities offered pursuant to section 100.390, RSMo when certain conditions are met.

1. (1) The commissioner, pursuant to the provisions of 409.2-203, RSMo, exempts the following securities from the requirements of sections 409.3-301 and 409.5-504 of the Missouri Securities Act of 2003 (the Act):

   1. (A) Any securities issued by a qualified fund as defined in section 100.390, RSMo which shall be approved by one

2. (1) or more qualified economic development organizations after a review by the Department of Economic Development and provided that the securities are sold pursuant to a disclosure document which has been filed with the Missouri commissioner of securities thirty (30) days prior to the offer or sale of the securities. The prospectus shall state on its cover in bold type that this is a high risk, speculative investment and that these securities are not approved by, guaranteed by or associated with Missouri;

   1. (B) No commission or other remuneration may be paid or given directly or indirectly for soliciting or selling to any person in this state for reliance on this exemption except to securities brokers, dealers and agents licensed in this state;
   2. (C) The applicants shall file with the commissioner a copy of the offering document, together with a fee of one hundred dollars ($100), as well as a copy of the contract with the economic development center which has approved the qualified fund; and

   3. (D) The qualified fund shall make the following provisions:

      1. 1. No officer, director or employee of the fund shall have

any interest in a company receiving money from the fund;

1. 2. The fund agrees to seek input from the innovation

center in its review of investment;

1. 3. The fund would require any company receiving funding

from it to agree to be a client of the innovation center at the discretion of the innovation center;

1. 4. The fund would submit quarterly reports to the

innovation center on the progress of the companies the fund invested in; and

1. 5. Investors in the fund shall have an annual gross income

of at least sixty thousand dollars ($60,000) and net worth of sixty thousand dollars ($60,000) or one hundred twenty thousand dollars ($120,000) net worth, exclusive of home, home furnishings and automobiles.

AUTHORITY: sections 409.2-203 and 409.6-605, RSMo Supp. 2003.* Original rule filed March 27, 1989, effective June 12, 1989. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004.

*Original authority: 409.2-203, RSMo 2003; 409.6-605, RSMo 2003.