Stock Option Agreement for United Arab Emirates

Stock Option Agreement Template for United Arab Emirates

A legally binding agreement governed by UAE law that grants an employee or consultant the right to purchase a specified number of shares in the company at a predetermined price within a specified period. The agreement details the terms and conditions of the stock option grant, including vesting schedules, exercise procedures, and restrictions on transfer, while ensuring compliance with UAE Companies Law and relevant securities regulations. It serves as a key instrument for employee retention and alignment of interests between the company and its key personnel, particularly important in the UAE's dynamic business environment where companies seek to attract and retain top talent.

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.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Stock Option Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Stock Option Agreement?

Stock Option Agreements are essential tools for companies operating in the UAE to attract, motivate, and retain valuable employees and consultants. These agreements are particularly relevant in the context of the UAE's growing technology and startup ecosystem, where equity compensation is becoming increasingly common. A Stock Option Agreement must be carefully structured to comply with UAE Federal Law No. 32 of 2021 (Companies Law) and other relevant regulations, including any applicable free zone rules. The document typically outlines the grant terms, vesting conditions, exercise procedures, and post-exercise rights, while considering local market practices and legal requirements. It's commonly used during hiring negotiations, as part of compensation packages, or for performance incentives, and requires careful consideration of both corporate and securities laws in the UAE.

What sections should be included in a Stock Option Agreement?

1. Parties: Identification of the Company granting the options and the Option Holder

2. Background: Context of the option grant, including reference to any employee stock option plan

3. Definitions: Key terms used throughout the agreement including Exercise Price, Option Shares, Grant Date, Vesting Schedule, etc.

4. Grant of Option: Details of the stock option grant, including number of shares, type 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 the options, including payment methods and timing

7. Termination of Employment: Effect of employment termination on vesting and exercise rights

8. Transferability: Restrictions on transfer or assignment of the options

9. Rights as a Shareholder: Clarification of rights before and after exercise of options

10. Compliance with Laws: Requirements for compliance with UAE laws and regulations

11. Taxes: Tax obligations and responsibilities of the parties

12. Notices: Process for formal communications between parties

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

What sections are optional to include in a Stock Option Agreement?

1. Change of Control: Provisions dealing with corporate reorganization, merger, or acquisition scenarios

2. Lock-up Period: Restrictions on selling shares after exercise, typically included for pre-IPO companies

3. Clawback Provisions: Company's right to recoup benefits in cases of misconduct or financial restatement

4. International Provisions: Special terms for international employees, addressing cross-border implications

5. Non-Competition: Restrictions on competing activities, subject to UAE labor law restrictions

6. Data Protection: Provisions for handling personal data in accordance with UAE privacy laws

7. Currency Provisions: Relevant for international option holders or if exercise price is in non-UAE currency

8. Electronic Communications: Provisions allowing for electronic notices and option administration

What schedules should be included in a Stock Option Agreement?

1. Schedule 1 - Option Certificate: Formal certificate detailing the specific option grant terms

2. Schedule 2 - Notice of Exercise: Form to be completed when exercising options

3. Schedule 3 - Vesting Schedule: Detailed breakdown of vesting dates and conditions

4. Schedule 4 - Shareholders' Agreement Deed of Adherence: Form for option holder to sign upon exercise to join existing shareholders' agreement

5. Schedule 5 - Tax Election Forms: Any required tax forms or elections

6. Appendix A - Stock Option Plan: Copy or summary of the governing stock option plan

7. Appendix B - Company's Articles of Association: Relevant excerpts from the company's constitutional documents

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Financial Services

Professional Services

E-commerce

Healthcare

Real Estate

Manufacturing

Retail

Telecommunications

Media and Entertainment

Energy

Transportation and Logistics

Education

Consulting

Relevant Teams

Legal

Human Resources

Finance

Corporate Governance

Executive Leadership

Company Secretarial

Compensation & Benefits

Compliance

Treasury

Strategic Planning

Relevant Roles

CEO

CFO

COO

CTO

Senior Software Engineer

Product Manager

Sales Director

Marketing Director

HR Director

Legal Counsel

Department Head

Regional Manager

Senior Consultant

Executive Director

Vice President

Managing Director

Financial Controller

Head of Operations

Business Development Manager

Research & Development Lead

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

Find the exact document you need

Unregistered Sale Agreement With Possession

UAE-governed agreement enabling property sale and possession transfer prior to formal registration, with comprehensive protections for both parties.

find out more

Residential Tenancy Agreement Form

UAE-compliant residential lease agreement establishing terms and conditions between landlord and tenant under UAE Federal and Emirates law.

find out more

Standard Form Contract

UAE-compliant Standard Form Contract template for standardized business transactions, aligned with UAE Civil Code requirements.

find out more

Legal Agreement Between Two Parties

UAE-compliant legal agreement template establishing contractual relationships between two parties, incorporating UAE Civil Code requirements and Sharia principles.

find out more

Legal Binding Contract

A UAE law-compliant legally binding contract template incorporating essential elements required under UAE Civil Code and commercial legislation.

find out more

Residential Lease Agreement Form

UAE-compliant residential lease agreement establishing terms and conditions for property rental, subject to UAE Federal Laws and emirate-specific regulations.

find out more

Contract Agreement Form

UAE-compliant contract agreement template establishing formal terms and conditions between parties under UAE law.

find out more

Legally Binding Agreement

A UAE law-governed Legally Binding Agreement for establishing enforceable contractual relationships between parties operating under UAE jurisdiction.

find out more

Incorporation Agreement

UAE-governed agreement establishing a new company's legal structure and operational framework in compliance with Federal Law No. 32 of 2021.

find out more

Casual Worker Contract

UAE-compliant casual worker contract establishing flexible employment terms under Federal Decree-Law No. 33 of 2021.

find out more

Tooling Agreement

UAE-governed agreement establishing terms for tooling manufacture, supply, and usage in manufacturing processes, including ownership, maintenance, and quality requirements.

find out more

Representation Agreement

UAE-governed agreement establishing and regulating a principal-representative relationship in compliance with UAE Commercial Agency Law.

find out more

Provisional Agreement

A UAE-governed temporary contractual arrangement establishing interim terms and conditions while parties work towards a final agreement.

find out more

Preliminary Agreement

A UAE law-governed interim agreement establishing preliminary terms and conditions between parties while working towards a definitive agreement.

find out more

Lease With Option To Buy

UAE-governed agreement combining property lease terms with a future purchase option, compliant with federal and emirate-specific real estate regulations.

find out more

Contractual Agreement

A legally binding agreement under UAE law establishing contractual obligations between parties, compliant with UAE Civil Code requirements.

find out more

Partnership Agreement

UAE-governed agreement establishing and regulating a business partnership, compliant with UAE Commercial Companies Law and local regulations.

find out more

Rental Contract

UAE-compliant rental agreement establishing terms between landlord and tenant, subject to federal and emirate-specific rental laws.

find out more

Consulting Agreement

UAE-governed agreement establishing terms and conditions between a consultant and client for professional consulting services.

find out more

Supply Contract Form

UAE-governed contract template establishing terms for supply of goods, compliant with UAE Civil and Commercial Codes.

find out more

Business Contract

A UAE law-governed contract establishing commercial relationships between business entities, ensuring compliance with UAE Civil and Commercial Laws.

find out more

Umbrella Agreement

UAE-governed master agreement establishing framework terms for ongoing business relationships and subsequent agreements, compliant with UAE Federal Law.

find out more

Share Purchase Agreement

UAE-governed agreement for the sale and purchase of company shares, detailing transaction terms and conditions in compliance with UAE law.

find out more

Website Development Agreement

UAE-governed agreement for website development services, defining project scope, deliverables, and mutual obligations between developer and client.

find out more

Volunteer Contract

UAE-governed volunteer agreement establishing formal volunteering relationship and mutual obligations while complying with Federal Law No. 5 of 2018.

find out more

Virtual Assistant Contract

UAE-governed contract establishing terms and conditions for virtual assistant services, including service scope, confidentiality, and payment terms.

find out more

Vendor Contract

UAE law-governed agreement regulating the supply of goods/services between a customer and vendor, incorporating key UAE commercial law requirements.

find out more

Tripartite Contract

UAE-governed agreement establishing legal relationships and obligations between three parties, compliant with UAE Civil Code requirements.

find out more

Transfer Of Ownership Agreement

UAE-governed agreement that legally transfers ownership rights from one party to another, ensuring compliance with local laws and registration requirements.

find out more

Trading Agreement

UAE-governed agreement establishing terms and conditions for commercial trading relationships between parties, including purchase, sale, or distribution arrangements.

find out more

Tender Agreement

A UAE-governed agreement establishing the framework and requirements for competitive tender submissions, incorporating local procurement laws and regulations.

find out more

Simple Employment Contract

A UAE-compliant Simple Employment Contract establishing basic terms and conditions between employer and employee under UAE Labor Law.

find out more

Simple Contractor Agreement

UAE-compliant contractor agreement template establishing independent contractor relationships while ensuring legal compliance with UAE federal laws.

find out more

Teaming Agreement

A UAE-governed agreement establishing collaboration terms between parties for pursuing specific business opportunities, aligned with UAE Federal Laws.

find out more

Syndicated Loan Agreement

UAE law-governed agreement documenting terms of a multi-lender loan facility, incorporating local banking regulations and commercial law requirements.

find out more

Suretyship Agreement

A UAE law-governed agreement where a surety guarantees to fulfill another party's obligations to a beneficiary, structured under UAE Civil Code requirements.

find out more

Supplier Contract

UAE-governed agreement establishing terms and conditions for supply of goods/services between supplier and customer, compliant with UAE Federal Laws.

find out more

Supplier Agreement

UAE-governed agreement regulating the commercial relationship between supplier and customer for goods/services provision.

find out more

Subcontractor Agreement

UAE-governed agreement establishing terms and conditions for subcontracted works or services, ensuring compliance with local laws and regulations.

find out more

Strategic Partnership Agreement

UAE-governed agreement establishing strategic partnership terms, conditions, and collaborative framework between parties.

find out more
See more related templates

Genie’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; Genie’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

2 Docs LeftAccess Now