Sec. 4005.025.  ISSUANCE OR TRANSFER TO NONPROFITS.  The exemption provided by Section 4005.001 applies to the issuance or transfer of securities by the issuer of its securities to a corporation or association organized exclusively for a religious, educational, benevolent, fraternal, charitable, or reformatory purpose and not for pecuniary profit, only if:
(1)  the corporation or association does not provide anything of value for the securities other than, for a security that is an option, payment of the exercise price of the option to acquire the securities at a price not to exceed the fair market value of the underlying securities on the date the option was granted;
(2)  the issuance or transfer is not made for the purpose of raising capital for the issuer;
(3)  a commission or other form of consideration is not paid or provided to a third party with respect to the issuance or transfer; and
(4)  the issuance or transfer is not directly or indirectly for the purposes of providing or furthering a scheme to violate or evade this title.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.