Future Equity Agreement Template for Saudi Arabia

1. Most Favored Nation: Ensures investor receives the benefit of more favorable terms offered to other investors, used in cases of multiple funding rounds

2. Pro-rata Rights: Gives investor right to participate in future funding rounds, included for strategic investors

3. Board Observer Rights: Grants investor right to attend board meetings, used for significant investments

4. Shariah Compliance Declaration: Specific declaration of Shariah compliance, used when required by Islamic investors

5. Foreign Investment Provisions: Additional provisions required for foreign investors under Saudi law

6. Tag-Along Rights: Allows investor to join in sale of company shares, used for larger investments

7. Dissolution Rights: Special rights in case of company dissolution, used for higher-risk investments

1. Schedule 1: Company Information: Detailed company information including corporate structure and capitalization

2. Schedule 2: Investment Terms Summary: Summary of key investment terms including valuation cap and discount rate

3. Schedule 3: Conversion Calculations: Detailed examples and formulas for conversion calculations

4. Schedule 4: Required Corporate Actions: List of corporate actions needed to implement the agreement

5. Schedule 5: Disclosure Schedule: Company disclosures against representations and warranties

6. Appendix A: Form of Accession Letter: Template for new investors to join the agreement

7. Appendix B: Shareholder Resolution Template: Template for shareholder approval of conversion

8. Appendix C: Regulatory Compliance Checklist: Checklist of Saudi Arabian regulatory requirements