Section 260.504.2.3 - Disclosure of Interest of Expert(a) When an expert is named in a prospectus or offering circular in accordance with Section 260.504.2.2, there shall be disclosed in the prospectus the nature and amount of any direct or indirect material interest of any such expert in the issuer of such securities, including any such interest received or to be received, in connection with the offering which is the subject of the prospectus or offering circular, by such expert, or by the expert's firm, or by members of such firm participating in the matter, other than fees paid in cash or to be paid in cash to such expert, firm or members. Employment by the issuer, other than retainer as such expert, shall also be disclosed in the prospectus or offering circular.(b) The above interests will not be deemed material if the amount of the interest, including the fair market value of all securities of the issuer owned, received and to be received, or subject to options, warrants or rights received and to be received by such firm or all members of the firm participating in the matter does not exceed $30,000 in the aggregate and not more than $10,000 for such expert or any individual member of the firm participating in the matter. For the purposes of this section, the term "member" means any director or executive officer of any corporate entity, a trustee of any trust, a general partner in any venture or partnership, and any other person having responsibilities comparable to the foregoing with respect to any other expert which is not an individual; and the term "firm" includes any organization or association of experts, acting in such capacity. This subsection does not create any presumption that an interest exceeding the amounts herein defined is material.Cal. Code Regs. Tit. 10, § 260.504.2.3
Note: Authority cited: Section 25610, Corporations Code. Reference: Sections 25140 and 25300, Corporations Code.