The Pennsylvania Legend on a Stock Certificate with Reference to Separate Document Restricting Transfer of Shares is a specific provision used by corporations in the state of Pennsylvania to restrict the transfer of company shares. This legend, which is printed on the stock certificate itself, refers to a separate document that contains additional restrictions or conditions regarding the transfer of shares. The purpose of the Pennsylvania Legend is to ensure compliance with various legal requirements and protect the interests of the company and its shareholders. It serves as a notice to potential buyers of the stock that there are certain limitations or provisions that may affect their ability to freely transfer the shares they acquire. There are different types of Pennsylvania Legends that can be found on stock certificates, depending on the specific restrictions or conditions imposed by the corporation. These variations may include: 1. "Pennsylvania Legend — Restricted Stock": This type of legend indicates that the shares being issued are subject to certain restrictions, such as limitations on resale, transfer, or assignment. The separate document referenced in the legend will outline the specific terms and conditions governing the transfer of these shares. 2. "Pennsylvania Legend — Right of First Refusal": This legend highlights that the corporation and/or existing shareholders have the first opportunity to purchase any shares that the shareholder intends to transfer. It outlines the process and terms under which the company or other shareholders can exercise this right. 3. "Pennsylvania Legend — Lock-Up Period": This legend signifies that there is a predetermined time period during which the shareholder is prohibited from selling or transferring the shares. This provision is commonly used in situations such as initial public offerings (IPOs) to prevent shareholders from flooding the market with their holdings immediately after the offering. 4. "Pennsylvania Legend — Voting Restrictions": This type of legend indicates that certain shares have limited or restricted voting rights. It may be implemented as a means to maintain control or ensure specific voting thresholds are met by certain shareholders. It is important for shareholders and potential investors to carefully review the Pennsylvania Legend and the accompanying separate document to understand the restrictions or conditions associated with the shares they hold or plan to acquire. These legends play a crucial role in safeguarding the rights and interests of both the company and its shareholders, ensuring transparency and compliance with applicable regulations.