The exemption provided by Section 4005.001 applies to the sale or distribution of a security without any public solicitation or advertisement if the sale or distribution is made:

1. (1) by an issuer of the security or any participating subsidiary of the issuer; and

2. (2) under a bona fide thrift, savings, stock purchase, retirement, pension, profit-sharing, option, bonus, appreciation right, incentive, or similar written compensation plan or written compensation contract established by the issuer or the issuer's subsidiary for the benefit of:

   1. (A) employees, directors, general partners, managers, or officers of the issuer or subsidiary;
   2. (B) the issuer's or subsidiary's trustees, if the issuer or subsidiary is a business trust; or
   3. (C) consultants or advisers who provide to the issuer or subsidiary bona fide services unrelated to the offer or sale of securities in a capital-raising transaction.

Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.