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Definition of 25102(o) Notice Filing

A Section 25102(o) notice filing refers to a California state filing that startups typically rely on when granting compensatory equity, like stock options, to services providers based in California. When startups grant compensatory equity to service providers, they typically rely on Rule 701 as their federal securities exemption. Rule 701 doesn't require any filings with the SEC. However, for compensatory equity grants to California service providers, a notice filing is required under Section 25102(o) for the first grant to a California based recipient under an option plan. 

The 25102(o) notice can be filed online. It must be filed within 30 days following the initial issuance of a security under the startup's option plan. Note that a new notice filing is required whenever the startup increases the number of shares reserved under its option plan.