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Call And Put Option Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Call And Put Option Agreement

"I need a Call and Put Option Agreement for a Saudi-based financial services company granting options over 25% of its technology subsidiary's shares to a strategic investor, with exercise periods starting March 2025 and including specific Shariah-compliant pricing mechanisms."

Document background
The Call And Put Option Agreement is a sophisticated financial instrument used in Saudi Arabian business transactions where parties seek to establish future trading rights over specific assets or securities. This document is particularly relevant when businesses need to create flexible investment structures or risk management mechanisms while ensuring compliance with both Saudi Arabian regulations and Islamic law principles. It becomes essential in scenarios involving strategic investments, corporate restructuring, or joint venture arrangements where parties require the right but not the obligation to buy or sell assets at predetermined terms. The agreement must carefully balance commercial objectives with regulatory requirements, including those set by the Capital Market Authority (CMA) and Shariah compliance standards. Typically used by financial institutions, investment firms, and large corporations, this agreement provides detailed provisions on option exercise procedures, pricing mechanisms, regulatory approvals, and risk allocation between parties.
Suggested Sections

1. Parties: Identification of all contracting parties, including full legal names, addresses, and registration details

2. Background: Context of the agreement, relationship between parties, and purpose of the option arrangement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Grant of Options: Explicit grant of call and put options, including the nature and scope of rights being granted

5. Option Exercise: Procedures and requirements for exercising the options, including notice requirements and timelines

6. Exercise Price and Payment: Specification of option exercise prices and payment mechanisms, ensuring Sharia compliance

7. Term and Expiration: Duration of the option agreement and circumstances of expiration

8. Representations and Warranties: Standard and specific warranties from each party, including Sharia compliance representations

9. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

10. Covenants: Ongoing obligations of the parties during the term of the agreement

11. Transfer Restrictions: Limitations on transfer of options or underlying assets

12. Events of Default: Circumstances constituting default and consequences

13. Termination: Grounds for termination and the process thereof

14. Notices: Communication procedures between parties

15. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

16. General Provisions: Standard boilerplate clauses including amendments, waivers, and severability

Optional Sections

1. Regulatory Compliance: Specific section addressing compliance with CMA regulations and other relevant laws, required when dealing with regulated entities or complex financial instruments

2. Security Arrangements: Details of any security or collateral arrangements, needed when security is required for the option obligations

3. Tax Provisions: Specific tax-related provisions and allocations, relevant when tax implications are significant or cross-border elements exist

4. Force Majeure: Provisions dealing with unforeseen circumstances, particularly relevant in longer-term option arrangements

5. Shariah Compliance Provisions: Detailed provisions ensuring compliance with Islamic law principles, required when parties specifically need to demonstrate Shariah compliance

6. Assignment: Specific provisions regarding assignment rights, needed when transfer rights are contemplated

7. Confidentiality: Detailed confidentiality obligations, required when sensitive information is involved

Suggested Schedules

1. Schedule 1 - Option Terms: Detailed specifications of the options including precise exercise prices, exercise periods, and underlying assets

2. Schedule 2 - Form of Exercise Notice: Template notice for exercising options

3. Schedule 3 - Calculation Methods: Detailed methodology for calculating various amounts under the agreement

4. Schedule 4 - Required Approvals: List of regulatory and other approvals required

5. Schedule 5 - Security Details: Details of any security or collateral arrangements if applicable

6. Appendix A - Compliance Checklist: Checklist ensuring compliance with relevant regulations and Shariah principles

7. Appendix B - Shariah Approval: Copy of Shariah board approval or certification if required

Authors

Alex Denne

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

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Relevant Industries

Financial Services

Investment Banking

Asset Management

Securities Trading

Private Equity

Real Estate

Energy

Infrastructure

Technology

Manufacturing

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Corporate Development

Investment

Trading

Shariah Advisory

Operations

Relevant Roles

Chief Financial Officer

Legal Counsel

Investment Manager

Compliance Officer

Risk Manager

Corporate Treasurer

Shariah Compliance Officer

Investment Banker

Securities Trader

Portfolio Manager

Corporate Development Director

Financial Controller

General Counsel

Transaction Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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