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Employee Stock Option Agreement
"I need an Employee Stock Option Agreement under Saudi law for our tech startup, covering options for both local and international employees, with a four-year vesting schedule starting March 2025 and including special provisions for remote workers."
1. Parties: Identification of the Company and the Employee (Option Holder), including full legal names and addresses
2. Background: Context of the agreement, including reference to employment relationship and stock option plan
3. Definitions: Key terms including Option, Exercise Price, Grant Date, Vesting Schedule, Shares, Plan, etc.
4. Grant of Option: Details of the stock option grant, including number of shares and exercise price
5. Vesting of Option: Vesting schedule and conditions for the options to become exercisable
6. Exercise of Option: Process and conditions for exercising options, including payment methods and notice requirements
7. Termination of Employment: Impact of employment termination on options under different scenarios
8. Restrictions on Transfer: Limitations on transferring or encumbering the options
9. Compliance with Laws: Requirements for compliance with Saudi regulations and Sharia principles
10. Tax Obligations: Responsibilities for taxes and zakat related to the options
11. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution
1. Change of Control: Provisions addressing what happens to options in case of company merger or acquisition - include if company anticipates potential M&A activity
2. Lock-up Period: Restrictions on selling shares after exercise - include if required by company policy or investors
3. Shareholder Rights: Rights of option holder before and after exercise - include if granting any special rights
4. International Provisions: Special provisions for international employees - include if agreement will be used for non-Saudi employees
5. Clawback Provisions: Company's right to recoup shares or profits in certain circumstances - include if part of corporate governance policy
1. Schedule 1 - Option Certificate: Formal certificate detailing the specific grant including number of shares, exercise price, and grant date
2. Schedule 2 - Notice of Exercise: Template form for employee to use when exercising options
3. Schedule 3 - Vesting Schedule: Detailed breakdown of vesting dates and conditions
4. Schedule 4 - Company's Stock Option Plan: Summary or extract of relevant plan provisions
5. Schedule 5 - Regulatory Compliance Checklist: Summary of key Saudi regulatory requirements and compliance steps
6. Appendix A - Tax Summary: Overview of tax implications under Saudi law
7. Appendix B - Shareholder Agreement Extract: Relevant provisions from company's shareholder agreement affecting option holders
Authors
Technology
Financial Services
Healthcare
Manufacturing
Telecommunications
Professional Services
E-commerce
Real Estate Development
Education
Energy
Consulting
Retail
Hospitality
Construction
Media and Entertainment
Human Resources
Legal
Finance
Executive Leadership
Corporate Governance
Compensation & Benefits
Compliance
Company Secretariat
Chief Executive Officer
Chief Financial Officer
Chief Technology Officer
Senior Software Engineer
Product Manager
Human Resources Director
Legal Counsel
Financial Controller
Operations Manager
Sales Director
Marketing Manager
Research Scientist
Business Development Manager
Department Head
Project Manager
Technical Lead
Senior Analyst
Executive Director
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