Houston Texas Legend on Stock Certificate refers to a specific notation or inscription found on a stock certificate issued by a company based in Houston, Texas. This legend serves as a reference to a separate document that contains restrictions on the transfer of shares held by the stockholder. The purpose of including the Houston Texas Legend on the Stock Certificate is to convey important information to potential buyers or transferees of the shares. By referencing a separate document, typically known as a Stock Restriction Agreement or Transfer Restriction Agreement, the holder or buyer is made aware of any limitations or conditions associated with the transfer or sale of the shares. There can be various types of Houston Texas Legends on Stock Certificates with Reference to Separate Document Restricting Transfer of Shares, each depending on the specific restrictions imposed by the company or agreed upon between the shareholders. Some common types of legends might include: 1. "Restricted Stock" Legend: This legend indicates that the shares being held or transferred have certain restrictions, such as limitations on the holder's ability to sell, gift, or transfer the shares without obtaining proper authorization from the company or other shareholders. 2. "Lock-Up" Legend: This legend is often used in initial public offerings (IPOs) or other significant corporate events, where shareholders are prohibited from selling or transferring their shares for a specific period, typically to stabilize the stock price or meet regulatory requirements. 3. "Right of First Refusal" Legend: This legend states that before a shareholder can sell or transfer their shares to a third party, they must first offer the shares to the company or other existing shareholders. If they decline the offer, only then can the shares be transferred to the proposed third party. 4. "Voting Restrictions" Legend: This legend informs the holder that certain shares carry limited or no voting rights, ensuring that control over the company remains with a specific group of shareholders. These are just a few examples, and the specific legend used will depend on the unique circumstances of the stock issuance or the shareholder agreement in place. In summary, the Houston Texas Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares refers to a notation on the certificate that alerts potential buyers or transferees of the existence of restrictions on the share transfer. These legends can vary based on the nature of the restrictions, such as restricted stock, lock-up periods, right of first refusal, or voting limitations.