Date: [Date of Execution]
Parties:
The Investor agrees to provide the Company with financing in the amount of [Investment Amount in Words] U.S. Dollars (USD [Amount in Figures]) (hereinafter referred to as the “Investment Amount”). This amount is not a loan, is not subject to repayment, and does not accrue interest.
The Investment Amount will automatically convert into shares of the Company upon the occurrence of a Triggering Event. A Triggering Event is defined as the Company closing a new round of equity financing of at least USD 250,000 (hereinafter referred to as the “Qualified Financing”).
Upon the occurrence of a Qualified Financing, the Investment Amount will convert into preference shares of the Company at a price per share calculated based on the more favorable of the following two conditions for the Investor:
In simple terms: The Investor receives shares at either a 20% discount to the price of new investors or based on a $1.5 million maximum valuation, whichever is more beneficial for the Investor.
In the event of a sale of the Company, merger, or dissolution prior to a Triggering Event, the Investor shall have the right, at their option, to either:
The Company represents that it is a legal entity duly incorporated in Nepal and has the full authority to enter into this agreement. The Investor represents that they have the right and financial capacity to make this investment.