Common Stock Certificate

Summary

This template common stock certificate illustrates the contents of a common stock certificate issued to a founder upon the purchase of stock from a start-up company. This template includes practical guidance and drafting notes. This template common stock certificate assumes the following: • The issuer is a Delaware corporation; • The shares are being issued in connection with a private offering and thus, have not been registered under the federal securities laws; and • The shares are subject to the issuer's charter, bylaws, and the terms of any other agreements between the issuer and the founder/stockholder that may impose significant restrictions on the transfer and sale of the shares (such as the founder equity purchase agreement). This template should be read in conjunction with the practice note Founder Equity Purchase Agreements and Issuances: Drafting Considerations. To compare select state laws on stocks and stockholders, see the Corporation: Corporation Stock and Stockholders topic in the Business Entities section of the State Law Comparison Tool.