81st Texas Legislature, Regular Session, Senate Bill 1442, Chapter 84

S. . No. 1442
1 series of shares with respect to the assets of the corporation on
2 the voluntary or involuntary winding up and termination of the
3 corporation;
4 (5) are exchangeable, at the option of the
5 corporation, shareholder, or other person or on the occurrence of a
6 designated event, for shares, obligations, indebtedness, evidence
7 of ownership, rights to purchase securities of the corporation or
8 one or more other entities, or other property or for a combination
9 of those rights, assets, or obligations, subject to Section 21.303;
10 and
11 (6) are convertible into shares of any other class or
12 series,' at the option of the corporation, shareholder, or other
13 person or on the occurrence of a designated event.
14 SECTION 30. Section 21.157, Business Organizations Code, is
15 amended by adding Subsection (c) to read as follows:
16 (c) This subsection applies only to shares issued in
17 accordance with Subsections (a) and (b) and Sections 21.160 and
18 21.161 for consideration consisting, wholly or partly, of a
19 contract for future services or benefits or a promissory note. A
20 corporation may place the shares, although fully paid and
21 nonassessable, in escrow, or make other arrangements to restrict
22 the transfer of the shares, and may credit distributions made with
23 respect to the shares against their purchase price, until the
24 services are performed, the note is paid, or the benefits are
25 received. If the services are not performed, the note is not paid,
26 or the benefits are not received, the corporation may pursue
27 remedies provided or afforded under law or in the contract or note,

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Texas. Legislature. Senate. 81st Texas Legislature, Regular Session, Senate Bill 1442, Chapter 84. [Austin, Texas]. The Portal to Texas History. http://texashistory.unt.edu/ark:/67531/metapth310916/. Accessed December 22, 2014.