ND — MidwestEmployee-FriendlyMedium Risk

Simple Agreement for Future Equityin North Dakota

A Y Combinator-developed instrument giving investors the right to receive equity in a future priced round, without a maturity date or interest rate. North Dakota's employee-friendly legal climate creates specific considerations for SAFE drafting and enforcement.

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Legal Climate

Employee-Friendly

Non-Competes

Restricted

Governing Law

Uncommon

Key City

Fargo

North Dakota Contract Law

Key Legal Fact

North Dakota prohibits non-compete agreements for employees under ND Cent. Code § 9-08-06.

Notable SAFE Law

ND's ban is one of the oldest in the nation and applies to nearly all employment non-competes.

Key Clauses to Review

1

Valuation Cap

Requires North Dakota-specific drafting under employee-friendly legal standards.

2

Most Favored Nation Clause

Requires North Dakota-specific drafting under employee-friendly legal standards.

3

Pro-Rata Rights

Requires North Dakota-specific drafting under employee-friendly legal standards.

⚠ Common Issue

SAFE stack dilution from multiple uncapped SAFEs at low cap

Major Industries in North Dakota

AgricultureEnergyHealthcareTechnology

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