Any investment contract that gives a party to the contract evidence of a debt or a business participation right can be a security covered by the Federal Securities Act of 1933. Certain stock issue transactions are also exempt (i.e., exempt from registration with the Securities and Exchange Commission).
The most common exempt transaction that close corporations take advantage of is the intrastate offering. To qualify for this exemption, both the investors and the issuer must all be residents of the same state. The issuer must also meet the following requirements:
" 80% of its assets must be located in the state;
" 80% of its income must be earned from operations within the state; and
" 80% of the proceeds from the sale must be used on operations within the state.
Also, for nine months after the issuance, the stock can only be sold to state residents.
If the offering is not exempt, then the issuer must go through the registration process with the Securities and Exchange Commission.
A Hawaii Promotion Agreement for the Purpose of Raising Money for a Business is a legally binding document that outlines the terms and conditions between a business and a promoter in Hawaii. It is designed to attract investors, donors, or supporters to contribute financial resources to the business venture. This agreement establishes a comprehensive framework for promotional activities to generate funds and raise awareness about the business in the unique context of Hawaii. The Hawaii Promotion Agreement for Raising Money for a Business typically includes the following key provisions: 1. Parties Involved: Identifies the business that requires funding and the promoter responsible for organizing promotional activities. 2. Purpose: Clearly defines the objective of the agreement, which is to raise money for the business through various promotional activities. 3. Promotional Plan: Outlines the strategies and marketing tactics to be employed by the promoter to generate interest and attract potential investors, donors, or supporters. This may include advertising campaigns, social media promotions, events, or partnerships with local businesses. 4. Compensation: Specifies the compensation structure for the promoter, which may be a fixed fee, a percentage of the funds raised, or a combination of both. This clause should also detail any additional expenses or reimbursements related to promotional activities. 5. Duration: Sets the duration of the agreement, outlining the specific time frame during which the promoter is expected to carry out the promotional activities. 6. Exclusivity: Determines whether the promoter has exclusive rights to work with the business or if multiple promoters can operate simultaneously. 7. Confidentiality: Includes provisions that protect the confidentiality of any sensitive information shared between the business and the promoter during the course of their partnership. 8. Termination: Outlines the circumstances under which either party can terminate the agreement, including breaches of contract, non-performance, or completion of the agreed-upon promotional activities. Different Types of Hawaii Promotion Agreement for the Purpose of Raising Money for a Business: 1. Fundraising Events Agreement: This type of agreement focuses on organizing events such as galas, charity auctions, or benefit concerts to raise money for the business. It may include provisions regarding ticket sales, sponsorship opportunities, and event logistics. 2. Crowdfunding Agreement: Specific to online fundraising platforms, this agreement establishes the terms and conditions for utilizing crowdfunding websites to attract contributors for the business. It covers aspects such as the target funding goal, rewards or incentives for donors, and the distribution of funds received. 3. Sponsorship Agreement: This agreement is centered around establishing partnerships with sponsors who contribute funds to the business in exchange for promotional benefits. It outlines the sponsorship terms, marketing exposure provided to sponsors, and the financial arrangements involved. In summary, a Hawaii Promotion Agreement for the Purpose of Raising Money for a Business is a crucial document that outlines the specifics of a partnership between a business and a promoter. It ensures clarity and defines the rules for conducting promotional activities to attract financial resources, raise awareness, and ultimately support the growth and success of the business venture.
