Ch. 533

LAWS OF MARYLAND

of plans which are not qualified under § 401 of the Internal
Revenue Code and which provide for contributions by employees,
the Commissioner is notified in writing 30 days before the
inception of the plan in this State; [and]

(12)  Any security traded pursuant to the National
Association of Securities Dealers Automated Quotations (NASDAQ)
systems for which the Commissioner by rule has determined that
registration is not necessary for the protection of investors!.];
AND

(13)  ANY OPTION ISSUED BY A CLEARING AGENCY THAT IS
BOTH DESIGNATED BY THE COMMISSIONER BY RULE AND REGISTERED UNDER
THE SECURITIES EXCHANGE ACT OF 1934, OTHER THAN AN OFF-EXCHANGE
FUTURES CONTRACT OR SUBSTANTIALLY SIMILAR ARRANGEMENT, IF THE
SECURITY, CURRENCY, COMMODITY, OR OTHER INTEREST UNDERLYING THE
OPTION:

(I)   IS REGISTERED UNDER § 11-502, § 11-503, OR
§ 11-504 OF THIS TITLE;

(II)  IS EXEMPT UNDER § 11-601 OR § 11-602 OF
THIS SUBTITLE; OR

(III)  IS NOT OTHERWISE REQUIRED TO BE
REGISTERED UNDER THIS TITLE.

11-602.

The following transactions are exempted from §§ 11-205 and
11-501 of this title:

(1)  Any isolated nonissuer transaction, whether
effected through a broker-dealer or not;

(2)  Any nonissuer distribution of an outstanding
security if:

(i) A recognized securities manual contains the
names of the officers and directors of the issuer, a balance
sheet of the issuer as of a date within 18 months, and a profit
and loss statement for either the fiscal year preceding that date
or the most recent year of operations; or

(ii) The security has a fixed maturity or a
fixed interest or dividend provision and there has been no
default during the current fiscal year or within the three
preceding fiscal years, or during the existence of the issuer and
any predecessor if less than three years, in the payment of
principal, interest, or dividends on the security;

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