King Washington Legend on Stock Certificate Giving Notice of Restriction on Transfer due to Stock Redemption Agreement Requiring First an Offer to the Corporation and then an Offer to other Stockholders

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: King
• Control #: US-1059BG
• Format: Word; Rich Text

Description

A Legend is a statement on a stock certificate noting restrictions on the transfer of the stock, often due to SEC requirements for unregistered securities. A stock redemption agreement is a contract between a corporation and the stockholder, where the corporation repurchases the stock from the owner The King Washington Legend is a special provision found on a stock certificate that serves as a notice of restriction on the transfer of stock. This restriction is imposed due to a Stock Redemption Agreement, which states that before transferring the stock, the shareholder must first offer it to the corporation and then to other stockholders. The purpose of the King Washington Legend is to ensure that the corporation and existing stockholders have the opportunity to purchase the shares before they are sold or transferred externally. This provision helps maintain stability and control within the company by allowing the corporation and stockholders the chance to retain ownership and influence. The notice on the certificate clearly outlines the restrictions on transfer and serves as a reminder to the shareholder that any transfer must adhere to the Stock Redemption Agreement. This helps prevent unauthorized transfers and ensures that the buy-back rights are properly exercised. Depending on the specific provisions outlined in the Stock Redemption Agreement, there may be variations of the King Washington Legend on the stock certificate. Some alternative legends or variants may include: 1. King Washington Legend — First Offer to Corporation: This type of legend specifies that the shareholder must first offer the shares for purchase to the corporation before considering any external offers. 2. King Washington Legend — First Offer to Stockholders: In this case, the shareholder is required to offer the shares to existing stockholders for purchase, following the corporation's potential decision to decline the offer. 3. King Washington Legend — Multiple Round Offer: This legend indicates that the Stock Redemption Agreement requires multiple rounds of offers, starting with the corporation, then certain stockholders, and possibly including subsequent rounds to a wider pool of stockholders. 4. King Washington Legend — Optional Transfer Restriction: This variant highlights an optional restriction that the shareholder may impose on the transfer of their shares. By exercising this option, the shareholder stipulates that offers must first be made to the corporation and then to other stockholders. These are just a few examples of the possible variations of the King Washington Legend that may be found on a stock certificate. The specific language and terms would depend on the details outlined in the Stock Redemption Agreement concerning the order of offer and potential restrictions on transfer.

The King Washington Legend is a special provision found on a stock certificate that serves as a notice of restriction on the transfer of stock. This restriction is imposed due to a Stock Redemption Agreement, which states that before transferring the stock, the shareholder must first offer it to the corporation and then to other stockholders. The purpose of the King Washington Legend is to ensure that the corporation and existing stockholders have the opportunity to purchase the shares before they are sold or transferred externally. This provision helps maintain stability and control within the company by allowing the corporation and stockholders the chance to retain ownership and influence. The notice on the certificate clearly outlines the restrictions on transfer and serves as a reminder to the shareholder that any transfer must adhere to the Stock Redemption Agreement. This helps prevent unauthorized transfers and ensures that the buy-back rights are properly exercised. Depending on the specific provisions outlined in the Stock Redemption Agreement, there may be variations of the King Washington Legend on the stock certificate. Some alternative legends or variants may include: 1. King Washington Legend — First Offer to Corporation: This type of legend specifies that the shareholder must first offer the shares for purchase to the corporation before considering any external offers. 2. King Washington Legend — First Offer to Stockholders: In this case, the shareholder is required to offer the shares to existing stockholders for purchase, following the corporation's potential decision to decline the offer. 3. King Washington Legend — Multiple Round Offer: This legend indicates that the Stock Redemption Agreement requires multiple rounds of offers, starting with the corporation, then certain stockholders, and possibly including subsequent rounds to a wider pool of stockholders. 4. King Washington Legend — Optional Transfer Restriction: This variant highlights an optional restriction that the shareholder may impose on the transfer of their shares. By exercising this option, the shareholder stipulates that offers must first be made to the corporation and then to other stockholders. These are just a few examples of the possible variations of the King Washington Legend that may be found on a stock certificate. The specific language and terms would depend on the details outlined in the Stock Redemption Agreement concerning the order of offer and potential restrictions on transfer.