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815 ILCS 602/5-10
(815 ILCS 602/5-10)
Sec. 5-10. Exemptions. Registration pursuant to Section 5-30
shall not apply to any of the
following:
(a) Any offer or sale of a business opportunity for which
the immediate cash payment made by the purchaser for any
business opportunity is at least $25,000 if the immediate cash
payment does not exceed 20% of the purchaser's net worth as
determined exclusive of principal residence, furnishings
therein, and automobiles; provided, however, the Secretary of
State may by rule or regulation withdraw or further condition
the availability of this exemption.
(b) Any offer or sale of a business opportunity which
the seller does not advertise, solicit, or sell for an initial payment to the seller or a
person recommended by the seller exceeding $500.
(c) Any offer or sale of a business opportunity where the
seller has a net worth of not less than $1,000,000 as determined
on the basis of the seller's most recent audited financial
statement, prepared within 13 months of the first offer in this
State. Net worth may be determined on a consolidated basis where
the seller is at least 80% owned by one person and that person
expressly guarantees the obligations of the seller with regard
to the offer or sale of any business opportunity claimed to be
exempt under this subsection. The Secretary of State may by rule
or regulation withdraw or further condition the availability of
this exemption.
(d) Any offer or sale of a business opportunity where the
purchaser has a net worth of not less than $250,000. Net worth
shall be determined exclusive of principal residence,
furnishings therein, and automobiles. The Secretary of State may
by rule or regulation withdraw or further condition the
availability of this exemption.
(e) Any offer or sale of a business opportunity where the
purchaser is a bank, savings and loan association, trust
company, insurance company, credit union, or investment company
as defined by the federal Investment Company Act of 1940,
pension or profit sharing trust, or other financial institution
or institutional buyer, or a dealer registered under the
Illinois Securities Law of 1953,
where the purchaser is acting for itself or in a fiduciary
capacity.
(f) Any offer or sale of a business opportunity which is
defined as a franchise under the Franchise Disclosure Act of 1987 provided that
the seller delivers to each purchaser 14 days prior to the earlier
of the execution by a purchaser of any contract or agreement
imposing a binding legal obligation on the purchaser or the
payment by a purchaser of any consideration in connection with
the offer or sale of the business opportunity, a disclosure document prepared in accordance with the requirements of Section 16 of the Illinois Franchise Disclosure Act of 1987, as it may be amended.
(g) Any offer or sale of a business opportunity for which
the cash payment required to be made by a purchaser for any business
opportunity does not exceed $500 and the payment is made for the
not-for-profit sale of sales demonstration equipment, material,
or samples or the payment is made for product inventory sold to
the purchaser at a bona fide wholesale price.
(h) Any offer or sale of a business opportunity which the
Secretary of State exempts by order or a class of business
opportunities which the Secretary of State exempts by rule or
regulation upon the finding that such exemption would not be
contrary to public interest and that registration would not be
necessary or appropriate for the protection of purchasers.
(Source: P.A. 96-648, eff. 10-1-09.)
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