Future Equity Agreement Template for South Africa

1. Most Favored Nation: Optional provision ensuring the investor receives the benefit of more favorable terms granted to future investors

2. Pro-rata Rights: Rights of the investor to participate in future funding rounds, included when negotiated

3. Board Observer Rights: Rights to attend board meetings as an observer, included for larger investments

4. Foreign Investment Provisions: Additional provisions required when the investor is not South African, addressing exchange control regulations

5. Founder Commitments: Specific commitments from founders, included when personal guarantees or commitments are required

1. Schedule 1: Calculation of Conversion Shares: Detailed methodology and examples of how the investment converts to shares under different scenarios

2. Schedule 2: Cap Table: Current capitalization table of the company

3. Schedule 3: Company Information: Detailed company information including corporate structure and existing shareholders

4. Schedule 4: Investment Amount Details: Payment schedule and bank account details if payment is in installments

5. Appendix A: Shareholders' Agreement Term Sheet: Key terms to be included in the shareholders' agreement upon conversion

6. Appendix B: Form of Conversion Notice: Template notice for triggering conversion under various scenarios