b'compensation for selling securities for someone elses offering (or even your own) without a securities broker-dealers license. It doesnt matter whether you are part of the issuer (such as an officer, director, manager, generalpartner,member,oremployee)oranexternalcapital raiser/promoter,youcannotbepaidtransaction-basedcompensation based on the amount invested by people you solicited, unless you hold the proper license.Not only is it illegal for you to receive such compensation, its also illegal for the issuer to compensate unlicensed securities broker-dealers. The issuer can lose its exemption and be charged with hiring unlicensed brokers to sell their securities.Who is the Issuer? Personswhoclaimtheissuerexemptionmusthavesubstantial responsibilitiesassociatedwithmanagementofthecompanyotherthan referring investors, that forms the basis for their compensation. The Texas StateSecuritiesBoardswebsitecontainsthefollowingillustrative explanation:Since a business can act only through natural persons, such as its owners, officers or directors, the exemption from dealer registration will extend to these persons acting on behalf of the issuer, but only if they meet three important criteria: 1.The person cannot have been hired for the purpose of offering or selling the securities; 240'