The South Dakota Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares serves as an important provision on stock certificates, specifically in the state of South Dakota. This legend includes a reference to a separate document that imposes restrictions on the transfer of shares. The purpose of the South Dakota Legend on Stock Certificate is to ensure that shareholders are aware of any existing restrictions or limitations on the transferability of their shares. These restrictions are typically in place to protect the interests of the company, its shareholders, or to comply with certain legal requirements. Different types of South Dakota Legends on Stock Certificates with Reference to Separate Document Restricting Transfer of Shares may include: 1. Restricted Stock Legend: This type of legend indicates that the transferability of the stock is restricted or subject to certain conditions. These conditions might involve holding periods, shareholder approvals, or the company's right of first refusal. 2. Vesting Legend: A vesting legend specifies that the shares are subject to a vesting schedule, implying that the shareholder does not fully own the shares until certain time-based milestones or performance targets are met. 3. Buy-Sell Agreement Legend: If a separate buy-sell agreement exists, this legend informs shareholders that the transfer of their shares should comply with the provisions outlined in that specific agreement. This agreement typically provides mechanisms for determining the price and terms of share transfers within a particular group of shareholders. 4. Voting Agreement Legend: When shareholders are subject to a voting agreement, this type of legend informs them that the transfer of shares must adhere to the provisions set forth in the agreement. These provisions may influence the voting power or decision-making rights associated with the transferred shares. 5. Right of First Refusal Legend: This legend notifies shareholders that, in the event they wish to transfer their shares, the company holds the right of first refusal. This means the company has the option to purchase the shares before they are offered to other potential buyers. It is essential for shareholders to carefully review the South Dakota Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares, as it clarifies any restrictions or conditions associated with the transferability of their shares. The mentioned legends ensure transparency and compliance with relevant laws, protecting the interests of all parties involved in stock transactions.