SAFE (Simple Agreement for Future Equity)

SIMPLE AGREEMENT FOR FUTURE EQUITY (SAFE)

This Agreement is made on [Date] between [Company] and [Investor]

1. Parties. This Simple Agreement for Future Equity is executed between [Company Name] (the "Company") and [Investor Name], [Address] (the "Investor").
2. Recitals. The Investor wishes to invest in the Company in consideration of the right to receive equity on a future financing.
3. Investment & Consideration. The Investor shall pay the Company a purchase amount of Rs. [Amount] on the Effective Date [Effective Date] in exchange for the rights set out herein.
4. No Debt. This SAFE is not a debt instrument, carries no interest and has no maturity date; it represents only a right to future equity.
5. Conversion & Obligations. Upon an Equity Financing, the purchase amount shall convert into shares of the Company at the applicable Conversion Price.
6. Valuation Cap & Discount. The Conversion Price shall be the lower of the price implied by a valuation cap of Rs. [Cap] or a [__]% discount to the financing price.
7. Liquidity / Dissolution. On a liquidity event or dissolution before conversion, the Investor shall receive, at its option, the purchase amount or its as-converted equity value.
8. Representations & Warranties. The Company warrants due incorporation, authority to issue this SAFE and that it is validly executed.
9. Confidentiality. The parties shall keep the terms of this SAFE confidential save as required by law.
10. Information Rights. The Company shall provide the Investor reasonable information regarding its affairs until conversion.
11. Term & Termination. This SAFE continues until it converts into equity or is settled on a liquidity or dissolution event.
12. Governing Law & Jurisdiction. This Agreement is governed by the laws of India and subject to the jurisdiction of courts at [City].
13. Dispute Resolution. Disputes shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, seated at [City].

IN WITNESS WHEREOF the parties have executed this Agreement on the date first written above.