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Evaluating SAFE Agreements, Shareholders Agreements, Stock Option Agreements, and More

Our law firm recently engaged in a comprehensive review of a Simple Agreement for Future Equity (SAFE) for an emerging start-up company. We also provided legal guidance on the creation of a shareholders’ agreement and a stock option grant agreement between the founders of this start-up.

We meticulously evaluated the benefits and drawbacks of initiating a SAFE agreement versus directly entering into a share subscription agreement with the investor. Additionally, we examined whether specific alterations to a SAFE agreement would maintain the agreement’s status as a SAFE agreement under the definitions provided by the Venture Investment Promotion Act.

Our firm also dispensed advice on the drafting of an agreement designed to incentivize long-term commitment among the founders. This agreement aimed to guarantee that any future transfer of the founders’ shares would not result in operational difficulties within the company. Furthermore, we provided counsel on establishing terms for granting stock options to further encourage long-term service and dedication to the company’s success.

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