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Startup Advisor Equity Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Startup Advisor Equity Agreement

"I need a Startup Advisor Equity Agreement for our Saudi-based fintech startup, granting 2% equity to a senior technology advisor with quarterly vesting over 2 years, starting March 2025, with specific provisions for AI and blockchain advisory services."

Document background
The Startup Advisor Equity Agreement is a crucial document for Saudi Arabian startups looking to formalize relationships with experienced advisors who can provide valuable guidance and expertise in exchange for equity-based compensation. This agreement type has become increasingly important with the growth of the Saudi startup ecosystem under Vision 2030 initiatives. It provides a legal framework that protects both the startup's interests and the advisor's rights while ensuring compliance with Saudi Arabian corporate and securities laws. The document is particularly relevant for early-stage companies that want to attract top advisory talent but may have limited cash resources. It covers essential elements such as equity vesting schedules, service expectations, confidentiality provisions, and intellectual property protection, all structured within the specific requirements of Saudi Arabian jurisdiction.
Suggested Sections

1. Parties: Identification of the Company and the Advisor, including their full legal names, addresses, and registration details as required under Saudi law

2. Background: Context of the advisory relationship, company's business, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including technical terms related to equity compensation and advisory services

4. Appointment and Scope: Terms of advisor's appointment, role description, and specific services to be provided

5. Equity Compensation: Details of equity grant, including type, amount, vesting schedule, and conditions

6. Advisor's Obligations: Key responsibilities, time commitment, reporting requirements, and performance standards

7. Company's Obligations: Company's commitments, including equity issuance, information provision, and support

8. Intellectual Property: IP rights assignment, protection of company IP, and advisor's contributions

9. Confidentiality: Non-disclosure obligations and handling of confidential information

10. Term and Termination: Duration of agreement, renewal terms, and grounds for termination

11. Post-Termination Obligations: Continuing obligations after agreement ends, including confidentiality and IP rights

12. Governing Law and Jurisdiction: Application of Saudi Arabian law and dispute resolution mechanisms

13. General Provisions: Standard clauses including amendments, notices, and entire agreement provisions

Optional Sections

1. Non-Competition: Restrictions on advisor's involvement with competing businesses - include if advisor has access to sensitive competitive information

2. Tax Provisions: Specific tax handling and responsibilities - include if advisor is foreign or tax implications are complex

3. Shareholder Rights: Additional rights granted with equity ownership - include if advisor receives voting shares or special privileges

4. Foreign Investment Provisions: Compliance with foreign investment laws - include if advisor is non-Saudi

5. Board Observer Rights: Rights to attend board meetings - include if advisor is granted board observation privileges

6. Exit Rights: Provisions for company sale or IPO - include if advisor receives special rights in exit scenarios

7. Dispute Resolution: Detailed arbitration or mediation procedures - include if standard court jurisdiction is not preferred

Suggested Schedules

1. Schedule 1: Services Description: Detailed outline of advisory services, deliverables, and performance metrics

2. Schedule 2: Equity Terms: Detailed terms of equity grant, including vesting schedule, acceleration provisions, and calculation methods

3. Schedule 3: Company Information: Key company details, capitalization table, and relevant corporate documents

4. Schedule 4: Confidential Information: Specific categories of confidential information covered by the agreement

5. Schedule 5: Existing IP: List of advisor's pre-existing IP excluded from assignment provisions

6. Appendix A: Share Certificate: Template share certificate or evidence of equity ownership

7. Appendix B: Required Notices: Forms for required notifications under Saudi law and corporate governance

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

Relevant legal definitions




































Clauses






























Relevant Industries

Technology

E-commerce

Financial Technology

Healthcare Technology

Education Technology

Clean Energy

Manufacturing

Logistics

Digital Media

Consumer Services

Biotechnology

Artificial Intelligence

Software Development

Retail Innovation

Smart Cities

Relevant Teams

Legal

Executive Leadership

Human Resources

Finance

Corporate Development

Strategy

Operations

Board of Directors

Compliance

Corporate Governance

Relevant Roles

Chief Executive Officer

Startup Founder

Business Advisor

Industry Expert

Technical Advisor

Strategic Consultant

Board Member

Chief Financial Officer

Chief Technology Officer

Chief Operating Officer

Investment Advisor

Venture Partner

Growth Strategist

Market Entry Specialist

Innovation Consultant

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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