Recent SEC No Action Letter On Paying Finders

[Bryan Hancock]

I know many on the board likely pay finders to identify money sources for them. I wanted to share the following SEC letter that we were recently made aware of via one of our webinars:

No Action Letter

Here is the most relevant snippet:

//Begin Snippet
BMW' s proposed role would be limited to the introduction of EMPS to a limited number of its contacts who may have an interest in providing funds for financing the operations and development of EMPS. BMW: (1) will not engage in any negotiations whatsoever on behalf of EMPS and any such contact; (2) will not provide any such contact with any information about EMPS which may be used as the basis for any negotiations for funding to be provided to EMPS; (3) will not have any responsibility for, nor make any recommendations concerning the terms, conditions, or provisions of any agreement between EMPS and any such contact providing funding for EMPS; (4) will not provide any assistance to any such contact or EMPS with respect to any transactions involving the financing of funds for EMPS.
//End Snippet

So...The SEC flip-flopped AGAIN about this recently. If you have existing finder's agreements that are a few years old you may want to revisit this topic with your securities attorney and point them to this ruling. We are in the process of having our attorney update our agreement.

[Bryan Hancock]

Yeap....the changes are easy to make Chris. Here is a link to how our attorney modified our agreement:

Revised Finder's Agreement

This is NOT legal advice. Use your own attorney!