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Consulting For Equity Agreement for Saudi Arabia

Consulting For Equity Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes a consulting relationship where the consultant receives equity compensation instead of or in addition to cash payments. The document outlines the consulting services to be provided, the equity compensation structure, vesting conditions, and regulatory compliance requirements under Saudi law, including necessary approvals from relevant authorities. It incorporates Sharia-compliant provisions and addresses both the commercial and regulatory aspects of equity-based compensation in Saudi Arabia, while protecting both parties' interests through detailed service specifications and equity terms.

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What is a Consulting For Equity Agreement?

The Consulting For Equity Agreement is commonly used in Saudi Arabia when companies seek to engage high-value consultants or advisors while conserving cash resources, particularly in growth-stage companies or strategic projects. This document structure complies with Saudi Arabian company law, securities regulations, and Sharia principles, making it suitable for both domestic and international consulting arrangements. It typically includes detailed provisions for equity issuance, vesting schedules, service expectations, and necessary regulatory approvals. The agreement is particularly relevant in the context of Saudi Vision 2030, where companies are seeking expertise in transformation and growth initiatives. It serves as a comprehensive framework for establishing long-term strategic relationships while aligning consultants' interests with company success through equity ownership.

What sections should be included in a Consulting For Equity Agreement?

1. Parties: Identification of the Company and the Consultant, including full legal names and registration details

2. Background: Context of the agreement, including the Company's business and the Consultant's expertise

3. Definitions: Key terms used throughout the agreement, including technical, financial, and legal definitions

4. Scope of Services: Detailed description of consulting services to be provided

5. Equity Compensation: Details of equity grant, including amount, type of shares, and vesting schedule

6. Service Terms: Duration, time commitment, and delivery requirements for consulting services

7. Regulatory Compliance: Provisions ensuring compliance with Saudi law and Sharia principles

8. Representations and Warranties: Statements of fact and guarantees from both parties

9. Confidentiality: Protection of company information and trade secrets

10. Intellectual Property: Ownership and rights to work product and pre-existing IP

11. Term and Termination: Duration of agreement and circumstances for early termination

12. General Provisions: Standard legal clauses including governing law, notices, and amendment procedures

What sections are optional to include in a Consulting For Equity Agreement?

1. Non-Competition: Restrictions on Consultant's ability to work with competitors, used when Consultant has access to sensitive information

2. Foreign Investment Provisions: Additional clauses required when Consultant is a foreign entity/individual

3. Board Observer Rights: Rights of Consultant to attend board meetings, included for strategic consultants

4. Tag-Along Rights: Rights to participate in future share sales, included for significant equity stakes

5. Regulatory Approvals: Process for obtaining necessary government approvals, included when required by stake size or industry

6. Shareholder Rights: Additional rights as shareholder, included for larger equity grants

What schedules should be included in a Consulting For Equity Agreement?

1. Schedule A - Services Description: Detailed scope of work and deliverables

2. Schedule B - Equity Terms: Detailed terms of equity issuance, including vesting schedule and conditions

3. Schedule C - Company Information: Corporate details, capital structure, and existing shareholders

4. Schedule D - Milestones: Performance targets linked to equity vesting

5. Appendix 1 - Required Regulatory Approvals: List of necessary government and regulatory approvals

6. Appendix 2 - Share Transfer Forms: Templates for share transfer documentation

7. Appendix 3 - Shareholder Resolution: Required corporate approvals for equity issuance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions











































Clauses






































Relevant Industries

Technology

Financial Services

Management Consulting

Healthcare

Education Technology

Real Estate Development

Manufacturing

Renewable Energy

Digital Transformation

E-commerce

Entertainment

Tourism

Professional Services

Relevant Teams

Legal

Finance

Corporate Development

Human Resources

Compliance

Board Secretariat

Strategy

Business Development

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Corporate Secretary

Business Development Director

Strategy Consultant

Management Consultant

Technical Advisor

Industry Expert

Financial Advisor

Board Member

Company Director

Compliance Officer

HR Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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