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Put Option Agreement
"I need a Put Option Agreement for a Saudi-based manufacturing company to sell its renewable energy equipment subsidiary, with an exercise period from March 1, 2025 to September 30, 2025, including specific Shariah-compliant valuation mechanisms."
1. Parties: Identification of the parties entering into the agreement - the Option Holder (Buyer) and the Option Writer (Seller)
2. Background: Context of the agreement and relationship between the parties
3. Definitions and Interpretation: Key terms used throughout the agreement, including specific financial and Islamic finance terminology
4. Grant of Put Option: Core terms of the put option, including the underlying asset and strike price
5. Exercise Period: Timeframe during which the option can be exercised
6. Exercise Procedure: Detailed process for exercising the option, including notice requirements
7. Settlement Terms: Procedures for completing the transaction upon exercise, including payment and asset transfer
8. Representations and Warranties: Statements of fact and assurances from both parties, including Sharia compliance representations
9. Covenants: Ongoing obligations of the parties during the option period
10. Events of Default: Circumstances constituting default and consequences
11. Termination: Conditions and procedures for early termination
12. Governing Law and Jurisdiction: Specification of Saudi Arabian law and relevant courts
13. Notices: Communication procedures between parties
14. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability
1. Premium Payment Terms: Used when the option involves an upfront or deferred premium payment structure
2. Shariah Board Approval: Required when parties need explicit confirmation of Shariah compliance
3. Third Party Rights: Included when the agreement affects rights of parties not directly involved
4. Tax Provisions: Detailed tax treatment when transaction has significant tax implications
5. Security Arrangements: When collateral or security is required for the option
6. Force Majeure: Provisions for extraordinary events affecting performance
7. Regulatory Compliance: Additional compliance requirements for regulated entities
8. Multiple Exercise Rights: When the option can be exercised in parts or multiple times
1. Schedule 1 - Asset Description: Detailed description of the underlying asset(s)
2. Schedule 2 - Pricing and Valuation: Methodology for determining the strike price and market value
3. Schedule 3 - Exercise Notice Form: Template for option exercise notification
4. Schedule 4 - Calculation Methods: Detailed calculations for payments and adjustments
5. Schedule 5 - Required Documents: List of documents required for settlement
6. Appendix A - Shariah Guidelines: Specific Shariah compliance requirements and principles
7. Appendix B - Regulatory Approvals: Copies of relevant regulatory approvals or requirements
8. Appendix C - Corporate Authorizations: Relevant corporate approvals and resolutions
Authors
Financial Services
Investment Banking
Asset Management
Real Estate
Private Equity
Islamic Finance
Commodities Trading
Energy
Manufacturing
Technology
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Development
Investment
Islamic Finance Advisory
Capital Markets
Corporate Finance
Chief Financial Officer
Investment Manager
Legal Counsel
Shariah Compliance Officer
Risk Manager
Treasury Manager
Corporate Finance Director
Investment Banker
Asset Manager
Transactions Manager
Financial Controller
Head of Legal
Chief Investment Officer
Private Equity Manager
Compliance Officer
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