Texas SAFE Note Template

Generate a safe note compliant with Texas law. Professionally drafted, customizable, and ready to e-sign.

Simple Agreement for Future Equity - SAFE (Texas)

This Simple Agreement for Future Equity (this "SAFE") is entered into as of [Effective Date] (the "Effective Date"), by and between [Your Company], a Texas [Entity Type] (the "Company"), and ...

DEFINITIONS

PURCHASE AMOUNT; ISSUANCE; CLOSING MECHANICS

CONVERSION UPON EQUITY FINANCING

LIQUIDITY EVENT

DISSOLUTION EVENT

VALUATION CAP AND DISCOUNT; ADJUSTMENTS

INVESTOR RIGHTS (INFORMATION; OPTIONAL PRO RATA; MFN)

COMPANY REPRESENTATIONS, WARRANTIES, AND COVENANTS

+ 5 more sections

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Texas Legal Considerations

Texas is widely considered a business-friendly state with strong contract enforcement traditions. The state follows at-will employment, enforces reasonable non-competes, and has no state income tax — factors that influence how contracts are drafted and compensation structured.

When drafting a safe note under Texas law, it's important to account for these local requirements to ensure your agreement is enforceable.

Texas-Specific Provisions

Non-compete agreements are enforceable if reasonable in scope, duration, and geography
Texas follows the economic reality test for worker classification
The Texas Business and Commerce Code governs commercial transactions
Texas courts generally favor freedom of contract and enforce agreements as written

What's Included

1.DEFINITIONS

2.PURCHASE AMOUNT; ISSUANCE; CLOSING MECHANICS

3.CONVERSION UPON EQUITY FINANCING

4.LIQUIDITY EVENT

5.DISSOLUTION EVENT

6.VALUATION CAP AND DISCOUNT; ADJUSTMENTS

7.INVESTOR RIGHTS (INFORMATION; OPTIONAL PRO RATA; MFN)

8.COMPANY REPRESENTATIONS, WARRANTIES, AND COVENANTS

9.INVESTOR REPRESENTATIONS, WARRANTIES, AND ACKNOWLEDGEMENTS

10.TRANSFER; ASSIGNMENT

11.OPTIONAL — CONFIDENTIALITY; TRADE SECRETS; DATA PRIVACY; EQUITABLE RELIEF

12.MISCELLANEOUS

13.DATA PRIVACY

Enforcement

Contracts governed by Texas law are subject to the state's specific enforcement standards. Courts will evaluate the reasonableness of restrictive provisions and may modify overly broad terms rather than voiding the entire agreement.

Frequently Asked Questions

Is this safe note enforceable in Texas?

Yes. Our templates are specifically drafted to comply with Texas law, including all relevant statutes and case law requirements. However, we always recommend legal review for high-value or complex transactions.

What courts handle contract disputes in Texas?

Contract disputes in Texas are handled by state courts. For business disputes, you may also specify federal court or arbitration in your agreement.

Do I need a lawyer to use this template in Texas?

For standard business transactions, our AI-generated templates are designed to be used without legal counsel. For complex deals, high-value transactions, or situations with unusual circumstances, we recommend having a Texas-licensed attorney review the agreement.

What is the difference between a SAFE and a convertible note?

A SAFE has no interest rate, no maturity date, and no repayment obligation. Convertible notes accrue interest and must be repaid or converted by a maturity date. SAFEs are simpler and more founder-friendly.

Should I use a valuation cap, discount, or both?

Most SAFEs include a valuation cap, a discount (typically 15-25%), or both. A cap-only SAFE is most common for early-stage rounds. Discuss with your investors to determine the best structure.

Other Jurisdictions

California SAFE Note New York SAFE Note United Kingdom SAFE Note

Related Templates

Advisor Agreement Co-Founder Agreement Letter of Intent

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