Rule701Exemption

Git Source

Inherits: FederalExemption

A standalone contract that tracks a total issuance cap for equity compensation under Rule 701. Typically enforces a 12-month rolling limit.

State Variables

issuer

address public issuer;

isActive

bool public isActive;

DEFAULT_ISSUANCE_CAP

uint256 public constant DEFAULT_ISSUANCE_CAP = 10_000_000;

secReporting

bool public secReporting;

Functions

constructor

Constructor for implementation

constructor();

initialize

Initialize the Rule701Exemption contract

function initialize(address _issuer, uint256 _initialCap) external;

Parameters

Name	Type	Description
_issuer	address	The address of the issuer
_initialCap	uint256	Optional initial cap. If 0, uses DEFAULT_ISSUANCE_CAP

recordGrant

Called by a compensation issuance contract to record a new grant's fair value. Ensures we do not exceed the 701 cap.

function recordGrant(address recipient, uint256 value) external;

closeRule701

Closes the 701 exemption usage (e.g. if the company transitions to a different structure).

function closeRule701() external;

updateIssuanceCap

Allows the issuer to update the issuance cap. The new cap must be greater than or equal to the total already issued.

function updateIssuanceCap(uint256 newIssuanceCap) external;

updateSECReporting

Allows the issuer to update the SEC reporting flag. Set _secReporting to true if the company is SEC-reporting; false otherwise.

function updateSECReporting(bool _secReporting) external;

Events

Rule701Initialized

Events

event Rule701Initialized(address indexed issuer);

GrantRecorded

event GrantRecorded(address indexed recipient, uint256 value);

Rule701Closed

event Rule701Closed();

IssuanceCapUpdated

event IssuanceCapUpdated(uint256 newIssuanceCap);

SECReportingUpdated

event SECReportingUpdated(bool newStatus);