The Stock Option Agreement serves as a crucial document for companies in Saudi Arabia looking to implement employee equity incentive programs. It is typically used when companies want to attract, retain, and motivate key employees by offering them the opportunity to acquire company shares at a predetermined price. The agreement must comply with Saudi Arabian regulations, including Capital Market Authority (CMA) requirements, Companies Law, and Sharia principles. It outlines the complete framework of the option grant, including vesting conditions, exercise procedures, and restrictions on transfer. This document is particularly relevant in the context of Saudi Vision 2030, which encourages private sector growth and employee participation in company ownership. The agreement should be carefully structured to address both local regulatory requirements and international best practices in employee compensation.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identification of the company granting the options and the employee receiving them
2. Background: Context of the agreement, including reference to any employee incentive scheme or board approvals
3. Definitions: Key terms used throughout the agreement, including 'Option', 'Exercise Price', 'Vesting Period', etc.
4. Grant of Option: Details of the stock options being granted, including number of shares and exercise price
5. Vesting Schedule: Timeline and conditions for when options become exercisable
6. Exercise of Options: Procedures and requirements for exercising the options
7. Term and Expiration: Duration of the option grant and circumstances of expiration
8. Restrictions on Transfer: Limitations on transferring or assigning the options
9. Termination of Employment: Impact of employment termination on the options
10. Regulatory Compliance: Compliance with Saudi laws, CMA regulations, and Sharia principles
11. Tax Consequences: Tax implications and responsibilities
12. Governing Law and Jurisdiction: Specification of Saudi Arabian law as governing law and relevant courts
1. Change in Capital Structure: Provisions for adjusting options in case of stock splits, mergers, etc. - include if company anticipates corporate restructuring
2. Shareholder Rights: Rights of option holders prior to exercise - include if pre-exercise rights are granted
3. Foreign Employee Provisions: Additional provisions for non-Saudi employees - include if foreign employees are eligible
4. Lock-up Period: Restrictions on selling shares after exercise - include if required by company policy
5. Sharia Compliance Declaration: Specific provisions ensuring Sharia compliance - include if required by company policy or investors
6. Performance Conditions: Additional vesting conditions tied to performance - include if part of performance-based scheme
1. Option Certificate: Formal certificate detailing the specific grant terms
2. Exercise Notice: Template form for exercising options
3. Vesting Schedule Details: Detailed breakdown of vesting dates and conditions
4. Shareholders Agreement Extract: Relevant provisions from the company's shareholders agreement
5. CMA Compliance Checklist: Checklist ensuring compliance with Capital Market Authority requirements
6. Tax Treatment Summary: Summary of applicable tax treatment under Saudi law
Relevant legal definitions
Clauses
Relevant Industries
Technology
Financial Services
Telecommunications
Healthcare
Manufacturing
Professional Services
Energy
Real Estate
Retail
Education
Construction
Mining
Transportation
Entertainment
Relevant Teams
Human Resources
Legal
Finance
Compliance
Corporate Secretariat
Executive Management
Compensation and Benefits
Risk Management
Corporate Governance
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Human Resources Director
Legal Counsel
Compliance Officer
Finance Manager
HR Manager
Compensation and Benefits Manager
Corporate Secretary
Department Head
Senior Manager
Executive Director
Vice President
General Manager
Managing Director
Find the exact document you need
Selling Real Estate Contract
A Saudi Arabian real estate sales contract template compliant with local laws and Sharia principles, facilitating property transfers and ensuring regulatory compliance.
Download
Wholesaling Real Estate Contract
A Saudi Arabia-compliant wholesale real estate contract governing bulk property transactions under local law and Shariah principles.
Download
Non Binding Agreement
A non-binding agreement template for use under Saudi Arabian jurisdiction, combining Sharia law principles with modern commercial practices to document parties' intentions without creating legal obligations.
Download
Non Compete Form
A Saudi Arabian legal document restricting post-employment competitive activities, governed by Saudi Labor Law and Sharia principles.
Download
Agreement For Job Work
A Saudi Arabian law-governed agreement between client and contractor defining terms and conditions for specific job work or project-based services.
Download
Non Disclosure Form
Saudi Arabia-compliant Non-Disclosure Agreement template for protecting confidential information exchange under Saudi law and Shariah principles.
Download
Videography Contract
A Saudi Arabian law-governed agreement for professional videography services, ensuring compliance with local regulations while defining service terms and deliverables.
Download
Subscription Agreement
A Saudi law-governed agreement establishing terms for subscription-based services, compliant with local regulations and Shariah principles.
Download
Production Contract
A Saudi Arabian law-governed agreement establishing terms and conditions for manufacturing or production activities, ensuring compliance with local regulations and Sharia principles.
Download
Novation Agreement (Real Estate)
A Saudi Arabian law-governed agreement transferring real estate contract rights and obligations from one party to another, ensuring compliance with Shariah principles and local property regulations.
Download
Option Contract (Real Estate)
A Sharia-compliant agreement under Saudi Arabian law granting the right to purchase specified real estate at predetermined terms within an agreed timeframe.
Download
Labor Contract
A Saudi Arabian employment agreement that establishes terms and conditions of employment while ensuring compliance with Saudi Labor Law and regulations.
Download
Franchise Agreement
A Saudi Arabian law-governed agreement establishing a franchise relationship, granting business operational rights while ensuring compliance with local regulations and Sharia principles.
Download
Common Agreement
A general-purpose legal agreement template compliant with Saudi Arabian law and Sharia principles, suitable for establishing business relationships in Saudi Arabia.
Download
Barter Agreement
A Saudi Arabian law-governed agreement facilitating the direct exchange of goods/services between parties, structured to comply with both Sharia and commercial law requirements.
Download
Unregistered Sale Agreement With Possession
A Saudi Arabian agreement facilitating property sale and possession transfer without immediate registration, compliant with local law and Sharia principles.
Download
Master Contract
A Saudi law-governed framework agreement establishing terms for ongoing business relationships, compliant with Shariah principles and local regulations.
Download
Notarial Contract
A legally authenticated contract under Saudi Arabian law, officially verified and certified by a licensed notary public, providing enhanced legal security and evidential value.
Download
House Rent Agreement Form
A Saudi Arabian residential lease agreement that establishes rental terms between landlord and tenant, compliant with local laws and Ejar system requirements.
Download
Partnership Agreement Form
A Saudi Arabian law-governed agreement establishing and regulating a business partnership, ensuring compliance with local regulations and Sharia principles.
Download
Landscape Contract
A Saudi Arabian law-governed contract for landscape construction and maintenance services, including works specifications and environmental compliance requirements.
Download
Guarantee Contract
A Saudi Arabian law-governed contract where a guarantor assumes responsibility for another party's obligations to a beneficiary, structured in compliance with Sharia principles and local commercial laws.
Download
Tenancy Agreement Form
A Saudi Arabian lease agreement template that establishes property rental terms between landlord and tenant, compliant with Saudi Tenancy Law and Sharia principles.
Download
Simple Rental Agreement Form
A Saudi Arabia-compliant rental agreement template for residential and commercial properties, incorporating local legal requirements and Shariah principles.
Download
Money Agreement Between Two Parties
A Sharia-compliant money agreement under Saudi Arabian law establishing financial arrangements between two parties with specific terms and conditions.
Download
Side Agreement
A supplementary agreement under Saudi Arabian law that modifies or adds to the terms of a primary agreement while ensuring Shariah compliance.
Download
Novation Contract
A Saudi Arabian law-governed agreement transferring contractual rights and obligations from one party to another, with consent of all parties involved.
Download
Mutual Agreement Between Two Parties
A bilateral agreement template compliant with Saudi Arabian law and Sharia principles, establishing mutual rights and obligations between two contracting parties.
Download
Contract For Selling A Car
A Saudi Arabian law-compliant agreement for the sale and transfer of vehicle ownership, incorporating local regulatory requirements and Sharia principles.
Download
Business Transfer Agreement
A Saudi law-governed agreement for transferring business ownership, including assets, liabilities, and operational elements from one entity to another.
Download
Tooling Agreement
A Saudi Arabian law-governed agreement establishing terms for industrial tooling supply, ownership, and usage, compliant with local commercial and Sharia law requirements.
Download
Representation Agreement
A Saudi law-governed agreement establishing the terms and conditions for commercial representation between a principal company and its Saudi representative.
Download
Notary Rent Agreement
A notarized rental agreement compliant with Saudi Arabian law and Ejar system requirements, establishing terms for property lease.
Download
Non Compete Agreement Between Companies
A Saudi Arabian law-compliant agreement restricting competitive activities between companies within specified parameters and timeframes.
Download
Land Agreement Between Two Parties
A Saudi Arabian land agreement document that formalizes property rights transfer between two parties, compliant with Sharia law and local regulations.
Download
Buyer Agency Agreement
A Saudi Arabian law-governed agreement establishing the relationship between a property buyer and their real estate agent, outlining services, obligations, and compensation terms.
Download
Commercial Lease Form
A Saudi Arabian commercial lease agreement template that establishes terms for leasing business properties, compliant with local laws and Shariah principles.
Download
Vending Machine Contract
A Saudi Arabia-governed agreement for vending machine installation and operation, compliant with local commercial law and Sharia principles.
Download
Contra Agreement
A Saudi Arabian law-governed agreement facilitating the exchange of goods/services between parties without primary monetary consideration, compliant with Sharia and local commercial regulations.
Download
Catering Contract
A Saudi Arabian law-governed agreement establishing terms for catering services provision, incorporating local regulatory requirements and Halal compliance.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)