All Countries
Capital Markets
Equity For Services Agreement

Equity For Services Agreement Template for Saudi Arabia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Equity For Services Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Equity For Services Agreement

"I need an Equity For Services Agreement for our Saudi-based technology company to engage a software development firm, offering them 5% equity in exchange for building our core platform, with the shares to vest quarterly over 18 months starting March 2025."

Celebrated by
Collaborations with
Investors
Document background
The Equity For Services Agreement is a strategic legal instrument used when companies wish to compensate service providers with equity instead of or in addition to cash compensation. This arrangement is particularly valuable for growing companies in Saudi Arabia that may be cash-constrained but can offer valuable equity stakes. The document must carefully navigate Saudi Arabian legal requirements, including Companies Law, Capital Market Authority regulations, and Sharia compliance principles. It typically includes detailed service specifications, equity valuation methodologies, vesting schedules, and performance metrics. The agreement is commonly used for securing long-term strategic services such as technical development, management consulting, or specialized professional services where aligning the service provider's interests with the company's success is beneficial. The structure needs to account for specific Saudi Arabian regulatory requirements regarding share transfers, foreign ownership restrictions (if applicable), and corporate governance standards.
Suggested Sections

1. Parties: Identification of the company issuing equity and the service provider, including full legal names, registration details, and addresses

2. Background: Context of the agreement, including the company's need for services and the service provider's qualifications

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

4. Services: Detailed description of the services to be provided, including scope, deliverables, and quality standards

5. Equity Compensation: Details of the equity to be issued, including number of shares, class of shares, and valuation methodology

6. Service Terms and Conditions: Specific terms governing the delivery of services, including timeline, performance metrics, and reporting requirements

7. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and compliance with laws

8. Share Transfer Restrictions: Limitations on the transfer of shares, including lock-up periods and right of first refusal

9. Regulatory Compliance: Provisions ensuring compliance with Saudi laws, including Companies Law and CMA regulations

10. Termination: Circumstances under which the agreement can be terminated and the consequences of termination

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and designation of Saudi courts for dispute resolution

12. Notices: Procedures for formal communications between parties

13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Intellectual Property Rights: Provisions regarding ownership and licensing of IP created during service provision

2. Confidentiality: Provisions for protecting confidential information, recommended when sensitive information will be shared

3. Non-Competition: Restrictions on competitive activities, useful when service provider gains significant company insights

4. Milestone-Based Vesting: Structure for releasing equity based on achievement of specific milestones

5. Tag-Along Rights: Rights of the service provider to join in sale of shares by major shareholders

6. Drag-Along Rights: Rights of majority shareholders to force service provider to join in sale of company

7. Board Representation: Rights of service provider to board representation, relevant for significant equity stakes

8. Shareholder Rights: Additional rights granted to the service provider as a shareholder

9. Force Majeure: Provisions for handling unforeseen circumstances preventing service delivery

Suggested Schedules

1. Service Scope Schedule: Detailed breakdown of services, deliverables, and technical specifications

2. Equity Terms Schedule: Detailed terms of equity issuance, including share class rights and restrictions

3. Vesting Schedule: Timeline and conditions for vesting of equity compensation

4. Performance Metrics Schedule: Specific KPIs and performance standards for service delivery

5. Company Information: Key company information including capital structure and existing shareholders

6. Required Regulatory Approvals: List of necessary regulatory approvals and compliance requirements

7. Share Valuation Report: Independent valuation report for the equity component

8. Service Provider Credentials: Documentation of service provider's qualifications and experience

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Board
Business Day
Capital Market Authority
Company
Completion Date
Confidential Information
Deliverables
Effective Date
Equity Compensation
Fair Market Value
Force Majeure Event
Intellectual Property Rights
Key Performance Indicators
Material Breach
Milestone
Ministry of Commerce
Ordinary Shares
Performance Metrics
Preferred Shares
Project
Related Parties
Regulatory Approvals
Services
Service Provider
Service Standards
Share Certificate
Shareholders
Share Transfer
Sharia Compliant
Subscription Rights
Term
Territory
Termination Date
Termination Event
Vesting Date
Vesting Period
Vesting Schedule
Working Hours
Clauses
Services Scope
Service Standards
Performance Requirements
Equity Compensation
Share Transfer
Share Restrictions
Vesting
Representations and Warranties
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Term and Termination
Force Majeure
Regulatory Compliance
Sharia Compliance
Dispute Resolution
Governing Law
Assignment
Amendments
Notices
Entire Agreement
Severability
Waiver
Third Party Rights
Further Assurance
Costs
Counterparts
Language
Board Approval
Shareholder Rights
Tag-Along Rights
Drag-Along Rights
Exit Rights
Right of First Refusal
Performance Metrics
Milestone Achievement
Quality Control
Reporting Requirements
Indemnification
Insurance
Data Protection
Anti-Corruption
Change Control
Relevant Industries

Technology

Professional Services

Management Consulting

Software Development

Financial Services

Healthcare

Education Technology

Digital Media

Real Estate Development

Engineering Services

Renewable Energy

Manufacturing

E-commerce

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Human Resources

Compliance

Executive Leadership

Board of Directors

Corporate Secretariat

Strategic Planning

Operations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Company Secretary

Board Member

Chief Technology Officer

Management Consultant

Strategic Advisor

Technical Consultant

Professional Service Provider

Business Development Director

Chief Operating Officer

Corporate Development Manager

Investment Manager

Compliance Officer

Industries
Saudi Companies Law (2015): Governs corporate structures, share issuance, transfer of shares, and shareholders' rights and obligations. Particularly relevant for equity distribution and corporate governance requirements.
Capital Market Authority (CMA) Regulations: Regulates the issuance and trading of securities, including private placements and share valuations. Essential for determining proper share valuation and transfer procedures.
Saudi Labor Law (Royal Decree No. M/51): Governs employment relationships and service provisions. Relevant for defining the service component and ensuring compliance with labor regulations.
Commercial Registration Law: Regulates business registration and documentation requirements for corporate changes, including shareholding modifications.
Anti-Money Laundering Law: Ensures compliance with financial regulations regarding share transfers and payment procedures.
Zakat, Tax and Customs Authority (ZATCA) Regulations: Governs tax implications of equity transfers and service compensation, including Zakat calculations for Saudi companies.
Sharia Principles: Islamic law principles that must be considered in contract formation and execution, particularly regarding interest (riba) and uncertainty (gharar).
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

Private Equity Employment Agreement

A Saudi Arabia-compliant employment agreement for private equity professionals, incorporating CMA regulations and industry-specific provisions.

find out more

Sweat Equity Partnership Agreement

A Saudi Arabian law-governed agreement establishing partnership terms where services or expertise are exchanged for business ownership rights.

find out more

Startup Advisor Equity Agreement

A Saudi Arabian law-governed agreement establishing terms for advisor services to a startup in exchange for equity compensation.

find out more

Simple Equity Investment Agreement

A Saudi law-governed agreement establishing terms for equity investment in a company, including share allocation, investor rights, and regulatory compliance requirements.

find out more

Simple Agreement For Equity

A Shariah-compliant Simple Agreement for Future Equity (SAFE) under Saudi Arabian law, establishing terms for converting investment into future equity shares.

find out more

Equity For Services Agreement

A Saudi Arabian law-governed agreement exchanging company equity for professional services, structured to comply with local regulations and Sharia principles.

find out more

Real Estate Private Equity Term Sheet

A preliminary agreement outlining key terms and conditions for a Saudi Arabian real estate private equity fund, compliant with local regulations and Shariah principles.

find out more

Private Equity Fund Agreement

A Saudi Arabian law-governed agreement establishing a private equity fund, defining relationships between fund managers and investors while ensuring CMA and Sharia compliance.

find out more

Sweat Equity Agreement

A Saudi Arabia-governed agreement for issuing company equity in exchange for services or expertise, compliant with local laws and Sharia principles.

find out more

Restricted Stock Grant Agreement

A Saudi Arabian law-governed agreement outlining terms for granting restricted company stock to employees, including vesting conditions and transfer restrictions.

find out more

Equity Share Contract

A Shariah-compliant Equity Share Contract under Saudi Arabian law, establishing terms for share ownership, transfer rights, and shareholder obligations.

find out more

Private Equity Investment Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for private equity investment, including investment structure, shareholder rights, and governance mechanisms.

find out more

Phantom Stock Agreement

A Saudi Arabian law-governed agreement establishing phantom stock rights for key employees, providing synthetic equity benefits while maintaining Sharia compliance.

find out more

Equity Pledge Agreement

A Saudi law-governed agreement creating a security interest over shares/equity, establishing rights and obligations of pledgor and pledgee in compliance with local regulations.

find out more

Standby Equity Purchase Agreement

A Saudi Arabian law-governed agreement establishing a committed equity facility between a listed company and an investor, providing flexible funding under Saudi CMA and Sharia compliance.

find out more

Restricted Stock Unit Agreement

A Saudi Arabian law-compliant agreement governing the grant and vesting of Restricted Stock Units (RSUs) to employees.

find out more

Employee Equity Agreement

A Saudi Arabian law-governed agreement establishing terms for employee equity ownership, including grant, vesting, and shareholder rights in compliance with local regulations.

find out more

Standby Equity Distribution Agreement

A Saudi Arabian law-governed agreement enabling flexible equity financing through staged share issuance, compliant with CMA regulations and Shariah principles.

find out more

Private Equity Agreement

A Saudi Arabian law-governed agreement establishing terms for private equity investment, incorporating Sharia compliance and local regulatory requirements.

find out more

Equity Participation Agreement

A Saudi law-governed agreement establishing terms for equity investment in a company, including shareholding rights, governance, and exit provisions.

find out more

Equity Grant Agreement

A Saudi Arabian law-governed agreement establishing terms for granting company equity to recipients, typically used for employee incentivization and stakeholder alignment.

find out more

Vested Equity Agreement

A Saudi Arabian law-governed agreement establishing terms for gradual equity vesting to employees or consultants, compliant with local regulations and Sharia principles.

find out more

Private Equity Subscription Agreement

A Saudi Arabian law-governed agreement detailing terms for private equity investment subscription, incorporating both CMA regulations and Sharia compliance requirements.

find out more

Equity Transfer Agreement

A Saudi Arabian law-governed agreement facilitating the transfer of company ownership interests between parties, ensuring compliance with local regulations and Shariah principles.

find out more

Equity Contribution Agreement

A Saudi Arabian law-governed agreement detailing the terms and conditions for capital contributions to a company in exchange for equity ownership, ensuring compliance with local regulations and Shariah principles.

find out more

Limited Partnership Agreement Private Equity

Saudi Arabian limited partnership agreement establishing a private equity fund structure, governing GP-LP relationships and fund operations under local regulations.

find out more

Equity Investment Agreement

Saudi Arabian law-governed agreement for equity investment transactions, detailing investment terms and shareholder rights while ensuring Shariah compliance.

find out more

Employee Stock Options Agreement

A Saudi Arabian law-governed agreement setting out terms for employee stock options, including grant, vesting, and exercise conditions in compliance with local regulations and Sharia principles.

find out more

Equity Purchase Agreement

A Saudi Arabian law-governed agreement for the purchase and sale of company shares, detailing transaction terms and regulatory compliance requirements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

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

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.