Unified UAE Legislation Database

Template: Safe Note Agreement (Simple Agreement for Future Equity)

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

[Company's Letterhead]

 

SIMPLE AGREEMENT FOR FUTURE EQUITY (SAFE)

 

THIS AGREEMENT IS NOT A DEBT INSTRUMENT

 

COMPANY: [Full Legal Name of the Company], a company incorporated in [Jurisdiction] with license number [License Number] ("Company").

 

INVESTOR: [Full Legal Name of the Investor], a [e.g., individual / company] [Address] ("Investor").

 

1. AGREEMENT TO SELL AND PURCHASE

The Company and the Investor hereby enter into this agreement, pursuant to which the Investor will provide [Investment Amount] ([Amount in Words]) to the Company on the date of this agreement. 

 

In exchange, the Company agrees to issue to the Investor the right to receive a future equity stake in the Company, subject to the terms and conditions outlined below.

 

2. EVENTS

2.1. Qualified Financing

Upon the closing of the next equity financing round in which the Company sells its preferred shares for aggregate gross proceeds of at least [Minimum Threshold] ("Qualified Financing"), this SAFE will automatically convert into the number of shares of the same class of preferred stock issued in the Qualified Financing. The conversion price per sh...