Investor: [Investor's Name]
Company being invested in : Heavy Data Backup
Date: 13 October 2023
1. Investment Amounts:
The Investor agrees to invest $100,000 USD in Phase 1 (the “Investment Amount”) in the Startup. The investments are pursuant to the terms and conditions of this SAFE.
The Investor agrees to invest $150,000 USD in Phase 2
The Investor agrees to invest $250,000 USD in Phase 3
Crowdfunding options are in the detailed agreement
2. Valuation Caps:
The SAFE will have a valuation cap of 162 Equivalues for Phase 1 (the “Valuation Cap”). This means that in any future equity financing round in which the Company issues equity securities, the Investor's SAFE will convert into equity at a price per share no greater than the Valuation Cap, subject to any applicable discount.
The SAFE will have a valuation cap of 270 Equivalues for Phase 2.
The SAFE will have a valuation cap of 540 Equivalues for Phase 3.
3. Discount Rate for Phase 1:
The Investor will receive a discount (the “Discount Rate”) on the price per share of the Company's equity securities issued in the next qualified financing round following this investment, or in the event of a qualifying transaction as defined in this SAFE. The Discount shall be 10% if the investment is calculated in Equivalue ( KN Selection 13 Oct 2023 )
Other discount rates are in the detailed agreement.
Discount Rate for Phase 2:
The Investor will receive a discount (the “Discount Rate”) on the price per share of the Company's equity securities issued in the next qualified financing round following this investment, or in the event of a qualifying transaction as defined in this SAFE. The Discount shall be 7% if the investment is calculated in Equivalue ( KN Selection 13 Oct 2023 )
Discount Rate for Phase 3:
The Investor will receive a discount (the “Discount Rate”) on the price per share of the Company's equity securities issued in the next qualified financing round following this investment, or in the event of a qualifying transaction as defined in this SAFE. The Discount shall be 3% if the investment is calculated in Equivalue ( KN Selection 13 Oct 2023 )
4. Qualifying Financing Round: A “Qualifying Financing Round” is defined as an equity financing round in which the Company raises at least 55 Equivalues in aggregate gross proceeds. It does not include debt financings, convertible notes, or SAFE offerings.
5. Vesting Period: The Investment Amount shall vest over a 12-month period, with 1/365th of the Investment Amount vesting on 00:01 of each day of the year. The vesting period of each phase shall start at the time the investment is made.
6. Conversion: Upon the occurrence of a Qualifying Financing Round or a qualifying transaction, the Investor's SAFE will convert into equity in the Company at a price per share determined by applying the Discount Rate to the price per share in the Qualifying Financing Round, provided that such price per share does not exceed the Valuation Cap.
6. Maturity Date: This SAFE does not have a maturity date, and there is no obligation for the Company to repay the Investment Amount unless a triggering event as defined in this SAFE occurs.
7. Governing Law: a. This SAFE agreement is governed by the laws of Sindh, Pakistan
b. Any dispute arising under or in connection with this SAFE agreement shall be subject to arbitration in accordance with the arbitration clause mentioned in this agreement.
Dispute resolution clause in the detailed agreement.
c. This SAFE agreement may only be amended in writing and signed by both parties.
8. Other Provisions: This SAFE may contain other customary provisions, including representations and warranties, covenants, and dispute resolution mechanisms, as negotiated between the parties.
9. Signatures: This SAFE is executed as of the date first above written.
Investor: Signature: Company being invested in : Signature: