Shareholders' Agreement (ADGM Private Company)

Parties

This agreement is dated the date on which it is signed by the last of the parties.

This agreement is entered into between (1) [Shareholder 1: legal name and details (the founder or majority-side holder)] ("Shareholder 1"); (2) [Shareholder 2: legal name and details (the investor or minority-side holder)] ("Shareholder 2"); (3) the other shareholders listed in [Other shareholders who sign now] and any person who signs a deed of adherence (together with Shareholder 1 and Shareholder 2, the "Shareholders"); and (4) [Company: legal name and registration details], a private company limited by shares registered in the Abu Dhabi Global Market under the Regulations (the "Company").

Key Terms

"Company" means [Company: legal name and registration details].

"Business" means [Business of the Company] and any other business the Board approves in accordance with this agreement.

"Cap Table" means the table of the Shares held by each Shareholder on the date of this agreement set out in [Cap table: each shareholder, class and number of shares held, and percentage], as it is updated under this agreement.

"Qualifying Holding" means, for a Shareholder together with its Affiliates and Permitted Transferees, holding at least 10% of the Shares in issue.

"Working Shareholders" means [Working Shareholders].

"Lock-up Period" means 24 months from the date of this agreement.

"Drag Threshold" means [Drag-along threshold] of the Shares in issue, and "Minimum Drag Price" means [Minimum price per share].

"Vesting Period" means 48 months from the date of this agreement and "Cliff" means 12 months from that date.

"Restricted Period" means [Restricted period after ceasing to be a shareholder] and "Restricted Area" means [Restricted area for the non-compete (a defined territory, not a vague region)].

Definitions

"Shares" means the shares in the capital of the Company of every class; "Shareholder" means each holder of Shares that is a party to this agreement; "Articles" means the articles of association of the Company as amended; "Regulations" means the Companies Regulations 2020 of ADGM; "Registrar" means the Registrar of Companies of ADGM; "Board" means the board of directors of the Company; "Director" means a director of the Company; and "Shareholder 1" and "Shareholder 2" are the parties so named.

"Vested Shares" means the Shares of a Working Shareholder that have vested under the Vesting of Working Shareholders' Shares clause, and "Unvested Shares" means the Shares that have not.

"Affiliate" means, for a person, any person that controls it, is controlled by it, or is under common control with it, and for an investment fund includes its manager, its general partner and any other fund managed or advised by the same manager.

"Business Day" means a day other than a Saturday, a Sunday or a public holiday in Abu Dhabi on which banks in that place are open for general business.

"Good Leaver" means a Working Shareholder who is a Good Leaver under the Bad Leaver clause.

"Cause" means fraud, dishonesty, conviction of an offence carrying imprisonment, material breach of this agreement or of the Working Shareholder's engagement that is not remedied within 30 days of notice, wilful neglect of duties, or conduct that brings the Company into serious disrepute.

"Fair Value" means the price per Share that a willing buyer would pay a willing seller for all the Shares on an arm's-length sale of the Company as a going concern, as agreed between the seller and the buyer or, failing agreement within 15 Business Days, as determined by an independent valuer under the Valuation clause, with no premium for a controlling holding and no discount for a minority holding.

"Exit" means a sale of all or substantially all of the Shares or of the business and assets of the Company to a third party, or the admission of the Shares or of a holding company's shares to trading on a recognised exchange (a "Listing").

"Permitted Transferee" means, for an individual, a trust or company controlled by that individual and established for the benefit of that individual or the individual's family; for a company, a member of its group; and for an investment fund, an Affiliate or a successor fund managed by the same manager.

In this agreement "including" does not limit what comes before it, headings are for convenience only, a reference to a clause is to a clause of this agreement, a reference to the law includes the law as amended or re-enacted, and "in writing" includes email unless this agreement says otherwise.

Purpose

The Shareholders agree to hold their Shares in the Company, and to manage the Company, on the terms of this agreement. The Company shall carry on the Business and shall not carry on any other business without the consent required for a Reserved Matter.

Business plan and budget

The Board shall prepare a business plan and an annual budget for each financial year and circulate a draft to every Director at least 30 days before that year starts. The Board approves the budget by a majority of Directors that includes at least one Director appointed by each Shareholder entitled to appoint a Director. Until a new budget is approved, the Company continues on the last approved budget, increased only by amounts needed for commitments already made.

Shareholdings

On the date of this agreement the Shareholders hold the Shares shown in the Cap Table, which each Shareholder confirms is correct for its own holding. Each Shareholder shall hold its Shares free of any pledge, charge or other security except as this agreement permits, and the Company shall keep its register of members in line with this agreement and shall not record a transfer or issue that is in breach of it.

Further funding

No Shareholder is obliged to invest more in the Company. If the Board decides that the Company needs further funding, it shall first offer new Shares to the Shareholders under the Pre-emption on new shares clause and may borrow within the limit set by the Reserved Matters.

Board composition

The Board consists of 3 Directors. Shareholder 1 may appoint and remove 2 of them and Shareholder 2 may appoint and remove 1 of them, each right lasting while the appointing Shareholder holds a Qualifying Holding. The Directors may co-opt a further independent director, [Independent director: how chosen and any requirements (leave blank if none)], with the approval of a Director appointed by each of Shareholder 1 and Shareholder 2.

Chair and casting vote

The Board appoints one of its Directors as chair. Except under the Deadlock resolution clause, the chair has no second or casting vote, and a matter on which the votes are tied is treated as not approved. A tie on a matter that is not a Reserved Matter and on which the Directors cannot agree is dealt with under the Deadlock clause.

Board meetings and quorum

The Board shall meet at least once every month, unless it decides otherwise. Notice of at least five Business Days, with an agenda and papers, is required for each meeting, unless every Director agrees to shorter notice. A quorum is present only if a majority of the Directors is present and includes at least one Director appointed by each Shareholder that has appointed a Director. If a quorum is not present, the meeting is adjourned to the same time and place five Business Days later, and at the adjourned meeting any two Directors constitute a quorum for matters on the original agenda that are not Reserved Matters.

Duties of appointed Directors

A Director appointed by a Shareholder owes the duties the law places on a director to the Company, and the appointing Shareholder shall not direct or ask the Director to act in breach of them. A Director may report to the appointing Shareholder on the Company's affairs to the extent the Information rights clause allows, and shall declare any conflict of interest between the Company and the appointing Shareholder.

Observer

A Shareholder with a Qualifying Holding that has not appointed a Director may appoint one observer to attend and speak, but not vote, at Board meetings and to receive Board papers. The Board may exclude the observer from part of a meeting to protect privilege, to deal with a conflict of interest, or if the observer is connected with a competitor of the Business, and the observer shall sign a confidentiality undertaking in favour of the Company.

Removal and vacancy

A Shareholder that has the right to appoint a Director may remove that Director and appoint a replacement by notice to the Company, and the other Shareholders shall vote their Shares to give effect to it. Unless the Board composition clause gives a Shareholder a Director in all cases, a Director's seat reserved for a Shareholder ends when that Shareholder stops holding a Qualifying Holding, and the Director shall resign on request. A vacancy shall be filled only by the Shareholder with the right to appoint to that seat.

Insurance and indemnity for Directors

The Company shall take out and keep in force insurance for its Directors against liabilities arising from their office, with a limit the Board approves, and shall give each Director an indemnity to the extent the Regulations allow. No indemnity covers fraud, wilful default or a breach of this agreement by the Director or by the Shareholder that appointed him or her.

Reserved Matters

The Company shall not, and the Shareholders shall procure that it and its subsidiaries do not, do any of the following without the prior written consent of Shareholder 1 and Shareholder 2: (a) change the constitution of the Company or the rights attached to any Shares; (b) allot, issue, redeem or buy back any Shares or grant any option over Shares, other than as this agreement requires; (c) change the nature of the Business or begin a new line of business; (d) sell, acquire or dispose of any business or any asset worth more than [Spend limit above which a transaction outside the budget is a Reserved Matter]; (e) incur borrowing above [Borrowing limit above which new debt is a Reserved Matter] or give a guarantee or security; (f) spend outside the budget more than [Spend limit above which a transaction outside the budget is a Reserved Matter] in a financial year; (g) enter into a transaction with a Shareholder or its Affiliate otherwise than on arm's-length terms; (h) appoint or remove the chief executive, the chair or the auditors; (i) declare a dividend or make a distribution other than under the Dividend Policy; (j) start or settle a legal proceeding above [Spend limit above which a transaction outside the budget is a Reserved Matter]; (k) approve the business plan or the annual budget; or (l) pass a resolution to wind up the Company or apply for an insolvency procedure, other than because the Company is insolvent.

Giving consent

A Reserved Matter consent must be in writing and signed by or for the Shareholder concerned (email counts). A Shareholder shall respond to a request for consent within 10 Business Days and shall not unreasonably delay, but silence is not consent, and a Shareholder may withhold consent in its absolute discretion for a matter that affects the rights attached to its Shares.

Acting without consent

The Shareholders shall exercise their votes and powers so that no Reserved Matter is done without the required consent. A transaction done in breach is a breach of this agreement by the Shareholders who voted for or allowed it, and each Shareholder may seek an injunction or an order to reverse the act, as the law permits, in addition to damages. This clause does not make the Company's dealings with third parties acting in good faith ineffective.

When consent rights end

A right to consent under the Reserved Matters clause held by a Shareholder ends when the Shareholder stops holding a Qualifying Holding. After that, the Reserved Matters that remain are those that the constitution or the law makes a matter for the Shareholders, and any right under this clause ends with the Shareholder.

Shareholder meetings

At a general meeting of the Company a quorum requires the presence of Shareholders holding a majority of the Shares, including a holder of Shares from each of Shareholder 1 and Shareholder 2 for as long as each holds a Qualifying Holding. If a quorum is not present within half an hour, the meeting is adjourned for five Business Days, and at the adjourned meeting those present form a quorum, except for a Reserved Matter. A Shareholder may attend and vote by a proxy it appoints.

Voting commitment

Each Shareholder shall exercise its votes so that this agreement is carried out, including by voting to appoint and remove Directors as the Board composition and removal clauses provide, to amend the Articles to match this agreement, and to approve an Exit that complies with the Drag-along clause. Where an obligation on the Company in this agreement would be an unlawful fetter on its powers, it takes effect as an undertaking by each Shareholder to procure the result so far as it lawfully can.

Information rights

The Company shall give every Shareholder with a Qualifying Holding: (a) management accounts and a summary of cash and key performance measures within 30 days of each month end; (b) annual accounts within 120 days of the year end; (c) the annual budget; and (d) any further information about the business and finances that a Shareholder reasonably asks for.

Inspection

On reasonable notice during business hours, each Shareholder with a Qualifying Holding may inspect, and take copies of, the books and records of the Company and, through one adviser bound to confidentiality, the premises, once in each financial year at its own cost unless the inspection reveals a material misstatement.

Competitors and privileged information

The Company may withhold information from a Shareholder, or an Affiliate, that carries on a business competing with the Business, except for information that the Shareholder's appointed Director needs to carry out the duties of a Director. The Company may also withhold anything that is subject to legal privilege or that the law prevents it from disclosing.

Pre-emption on new shares

If the Company proposes to issue new Shares or any right to acquire Shares, it shall first offer them to every Shareholder in proportion to the Shares it holds, by a written notice that states the number, class, price and other terms. A Shareholder may accept all or part of its entitlement within 15 Business Days and, if it accepts all, may ask for any Shares that others do not take up. The Company may sell Shares not taken up to another person within 90 days on terms no better for that person than those offered.

Pre-emption under the Regulations and the Articles

If the Regulations or the Articles give existing members a right of pre-emption on an issue of Shares for cash, the procedure in the Pre-emption on new shares clause applies in addition, and the Shareholders shall vote to disapply the right for an issue made under this agreement where the Regulations allow it. The Directors shall not issue Shares without any authority from members the Regulations or the Articles require.

Excluded issues

Pre-emption does not apply to: (a) options and shares under an employee share plan up to [Employee option pool, as a percentage of fully diluted share capital, excluded] of the fully diluted share capital; (b) Shares issued on conversion of an instrument already in existence on the date of this agreement; (c) Shares issued by way of a bonus issue or share split to all Shareholders in proportion; or (d) Shares issued as consideration for an acquisition approved as a Reserved Matter.

Lock-up

No Shareholder shall transfer, charge or otherwise deal with any Share before the end of the Lock-up Period, except to a Permitted Transferee, under the Tag-along or Drag-along clause, or with the written consent of the other Shareholders.

General restriction on transfers

No Shareholder may transfer any Share or any interest in a Share except as this agreement permits. A transferee that is not already a party shall, as a condition of the transfer, sign a deed of adherence to this agreement, and the Company shall not register a transfer that does not follow this agreement. A Shareholder shall not grant an option over, or enter into a voting or other arrangement about, its Shares that conflicts with this agreement.

Permitted transfers

A Shareholder may transfer Shares to a Permitted Transferee without the Right of First Refusal or the Lock-up Period applying, if the transferee first signs a deed of adherence. If the transferee stops being a Permitted Transferee, it shall transfer the Shares back to the original Shareholder (or another Permitted Transferee) before that happens. A transfer to a Permitted Transferee does not release the original Shareholder from its obligations.

Right of first refusal

A Shareholder that wants to sell Shares to a third party shall first send a transfer notice to the Company and the other Shareholders that states the Shares, the proposed buyer, the price and the other terms. The other Shareholders may buy all the offered Shares at that price, in proportion to their holdings, by notice within 20 Business Days. If they do not take all of them, the seller may sell the remaining Shares to the named buyer within 60 days at no lower price and on terms no more favourable to the buyer, subject to the Tag-along clause.

Tag-along

If a sale of Shares by one or more Shareholders would result in a buyer, with persons acting in concert, holding more than 50% of the Shares, the sellers shall not complete the sale unless the buyer offers to buy all other Shares for the same price and on the same terms per Share. Each Shareholder may accept within 20 Business Days. If the buyer offers different forms of consideration, each Shareholder may elect the same form as the sellers.

Drag-along

If holders of at least the Drag Threshold (the "Sellers") want to sell all their Shares to a bona fide third party that is not connected with them, they may by a drag notice require every other Shareholder to sell all its Shares to that buyer on the same terms per Share, provided the price per Share is at least the Minimum Drag Price and, if the Sellers include Shareholder 1, Shareholder 2 consents or is paid cash on completion. Completion must take place within 90 days of the drag notice.

Protection of dragged Shareholders

A Shareholder required to sell under the Drag-along clause (a) receives the same price and form of consideration per Share of the same class as every other seller, subject to the proceeds order in the Distribution of exit proceeds clause; (b) gives warranties only about its own title, capacity and authority; (c) is liable only severally, in proportion to its share of the price, and not for more than the amount it receives; (d) is not required to enter into a non-compete or a non-solicit other than the confidentiality undertaking; and (e) bears its share of costs in proportion to its proceeds. Escrows and holdbacks are borne by all sellers pro rata.

Drag-along completion

On receipt of a drag notice each dragged Shareholder shall sign the transaction documents, deliver its share certificates or other evidence of title and give the buyer good title on completion. If a dragged Shareholder fails to do so within 10 Business Days, that Shareholder irrevocably appoints each seller, severally, as its attorney by way of security to sign those documents in its name and to give its instructions on the sale, and the Company may register the transfer. A seller may also ask the ADGM Courts for an order that the Shareholder perform its obligations.

Deed of adherence

A person that becomes a Shareholder after the date of this agreement shall, as a condition of its registration, sign a deed of adherence in the form the Board approves under which it takes on the rights and obligations of the Shareholder from whom it takes its Shares, and, for a new subscriber, of the class of Shareholder its holding corresponds to. The Company shall hold the signed deed with this agreement.

Vesting of Working Shareholders' Shares

The Shares held by each Working Shareholder on the date of this agreement vest in equal monthly instalments over the Vesting Period, with nothing vesting before the Cliff and the instalments that would have vested during the Cliff vesting when it ends. Shares that have not vested are Unvested Shares. On a sale of the Company that is an Exit all Unvested Shares vest if the Working Shareholder is then still engaged in the Business.

Bad Leaver

A Working Shareholder is a Bad Leaver if it ceases to be engaged in the Business because of dismissal for Cause, resigns without good reason within the first 24 months, or breaches the Restricted Period covenant or the confidentiality clause. A Working Shareholder who ceases to be engaged for any other reason is a Good Leaver.

Leaver call option

On a Working Shareholder ceasing to be engaged in the Business (the "Leaving Date"), the Company, the other Shareholders in proportion, or a person they nominate, may within 60 days by notice require the Working Shareholder to sell all or part of its Unvested Shares and, if it is a Bad Leaver, all its Shares. The Company may buy Shares only if and in the way the Regulations and the Articles allow, including any approval and solvency conditions, and otherwise the other Shareholders or their nominee may buy them. The price on a Bad Leaver must not be so far below Fair Value that a court applying English common law would treat the clause as a penalty.

Leaver price

The price of Shares bought on a Good Leaver is the lower of the Fair Value and the price the leaver paid, for Unvested Shares, and the Fair Value for Vested Shares. The price on a Bad Leaver is the lower of the price paid by the leaver, being [Subscription price per share paid by the Working Shareholders] per Share, and the Fair Value, for all the Shares bought.

Completion of leaver sales

A sale under the Leaver call option completes within 30 days of the price being agreed or determined. The leaver shall sign the transfer and deliver its certificates. If it does not, the leaver irrevocably appoints each other Shareholder, severally, as its attorney by way of security to sign the transfer in its name, and the Company may register the transfer and hold the price for the leaver until the certificate or an indemnity for its loss is delivered. Dividends and votes of Shares subject to a call option may be suspended from the notice date until completion.

Valuation

If the Fair Value is not agreed within 15 Business Days, either party may require it to be determined by an independent valuer chosen by agreement, or if not agreed within five Business Days, nominated by [Body that nominates the independent valuer if the parties cannot agree]. The valuer acts as an expert and not as an arbitrator, his or her decision is final and binding except in the case of fraud or manifest error, and the costs are shared equally between the buyer and the seller unless the valuer decides otherwise.

Deadlock

A "Deadlock" arises if a Reserved Matter or a matter the Board has to decide has been put to two consecutive duly convened meetings of the Board, or of the Shareholders, on at least ten Business Days' notice, and has failed to be approved at both because the Directors or Shareholders appointed by Shareholder 1 and by Shareholder 2 have voted in opposite ways, and a party has given a Deadlock notice to the others.

Escalation

On a Deadlock notice, the chief executives, or a senior representative with authority, of Shareholder 1 and Shareholder 2 shall meet within 30 days and try in good faith to resolve the matter. If the representatives do not resolve it within that time, the Deadlock continues to the next step of the Deadlock resolution clause.

Deadlock resolution

If escalation does not resolve the Deadlock, the Shareholders shall refer it to mediation by a mediator chosen by agreement or nominated by [Body that nominates the independent valuer if the parties cannot agree], which is to be completed within 30 days. If the Deadlock concerns a matter of valuation or of fact that an expert can decide, either may refer it to an independent expert whose decision binds the parties.

Business during a Deadlock

While a Deadlock is being resolved, the Company shall continue to carry on the Business in the ordinary course within the last approved budget, no Shareholder shall use a Deadlock to stop the Company paying debts as they fall due, and each Shareholder shall keep voting rights and information rights and shall not use confidential information about the Deadlock against the Company.

Member remedies

Nothing in this agreement removes a right a Shareholder has under the Regulations or the law applied in ADGM to ask the ADGM Courts for relief as a member, including relief against unfairly prejudicial conduct if that is available. The Shareholders agree that conduct that follows this agreement is conduct they contemplated, and shall first use the Deadlock resolution clause before applying for relief, except in cases of urgency.

Anti-dilution protection

If the Company issues Shares for a price per Share lower than the price Shareholder 2 paid for its Shares (the "Original Price"), other than an excluded issue, the Original Price of Shareholder 2's Shares is reduced to the price given by the following broad-based weighted-average formula: NCP = OCP x (A + B) / (A + C), where OCP is the Original Price, A is the number of Shares in issue before the new issue on a fully diluted basis, B is the number of Shares that the total new consideration would buy at the Original Price, and C is the number of new Shares issued. The Company shall issue to Shareholder 2, as a bonus issue or for the lowest consideration the law allows, the Shares needed to give effect to the reduced price, and the Shareholders shall vote to approve the issue and to disapply any pre-emption right.

Excluded issues for anti-dilution

No anti-dilution adjustment applies to Shares issued: (a) under the employee share plan up to the option pool of [Employee option pool, as a percentage of fully diluted share capital, excluded]; (b) on conversion of an instrument in existence at the date of this agreement; (c) as a bonus issue or share split; (d) in consideration for an acquisition approved as a Reserved Matter; or (e) where Shareholder 2 has agreed in writing that the issue is excluded.

Exit planning

Once in each financial year the Board shall review options for an Exit and record its conclusions, and a Shareholder may require the Board to consider a proposal that it puts forward. No Shareholder is obliged to support an Exit that does not meet the Drag-along conditions.

Listing cooperation

If the Board and the holders of the Drag Threshold decide to seek a Listing, each Shareholder shall cooperate, including by agreeing to a lock-up of up to 180 days if the sponsor asks, voting for any re-registration or conversion of the Company needed for the market chosen, changes to the Articles and share capital, and giving the customary confirmations, as long as every Shareholder is treated alike.

Distribution of exit proceeds

On an Exit or a winding up, the proceeds are shared among the Shareholders in proportion to the Shares they hold, after the costs of the Exit, with the same price for every Share of the same class.

Dividend policy

The Board may declare dividends out of distributable profits after providing for the budget, working capital and reserves, up to [Percentage of distributable profits the board may distribute each year] of the distributable profits each year, and every dividend is paid on all Shares of the same class in proportion to the Shares held.

Non-compete

While a Working Shareholder holds Shares, and for the Restricted Period after it stops holding them, it shall not in the Restricted Area carry on, be engaged in or hold more than 3 per cent of a business that competes with the Business. This clause applies only to the extent necessary to protect the Company's confidential information and goodwill, and is separate from each of the other restrictions in this clause.

Non-solicit

While a Working Shareholder holds Shares and for the Restricted Period after it stops holding them, it shall not solicit or hire any employee or key contractor of the Company with whom it worked in the last 12 months, or solicit any customer or supplier of the Company with whom it dealt in that period for a competing purpose.

Restraint of trade

Each Shareholder agrees that the restrictions in the covenant clauses are no wider than reasonably needed to protect the Company's confidential information and goodwill. The parties accept that the ADGM Courts, applying English common law, will not enforce a restraint of trade that goes beyond what is reasonable. Each restriction is separate and, if any is unenforceable as drafted, the others remain. A Working Shareholder who is an employee is also subject to the employment rules that apply in ADGM, which this clause does not displace.

Confidentiality of Company information

A Shareholder shall treat as confidential all non-public information it receives about the Company, the other Shareholders and the terms of this agreement, and shall use it only to manage its investment. Information that is public otherwise than through a breach of this clause, or that the Shareholder lawfully had before, is not confidential.

Permitted disclosure

A Shareholder may disclose confidential information to its Affiliates, officers, advisers and financiers, and, for an investment fund, to its partners and investors under a duty of confidence, to a bona fide prospective buyer of its Shares who signs a confidentiality undertaking, and as the law, a court or a regulator requires, after telling the Company where it can lawfully do so.

Related-party dealings

A contract between the Company and a Shareholder, a Director or any of their Affiliates must be at arm's length and in writing, and is a Reserved Matter unless it is on terms disclosed in this agreement. An interested Director shall declare the interest and, unless the constitution and the law allow it, shall not vote on the matter.

Shareholder warranties

Each Shareholder warrants to the others and to the Company that it has full power and authority to sign and perform this agreement, that it is the legal and beneficial owner of its Shares shown in the Cap Table free from any security, that signing this agreement does not breach any law or agreement binding on it, and that, if it is an individual, it has received or had the chance to take independent legal advice.

Company confirmations

The Company confirms that it is validly existing, has power to sign and perform this agreement and has issued the Shares in the Cap Table in accordance with its constitution and the law, and that the Cap Table is accurate on the date of this agreement. The Company is not liable under this clause for anything in the Cap Table that a Shareholder has itself provided.

Consistency with the constitution

The Articles are the Company's constitution under the Regulations and bind the Company and its members, while this agreement binds only its parties. Because English common law applies in ADGM, a Shareholder who tries to enforce this agreement against the Company may meet the arguments that a company cannot fetter its statutory powers by contract and that rights found only in a private agreement do not bind later members. The Shareholders shall therefore put the provisions of this agreement that must bind the Company and later members into the Articles, as far as the Regulations allow, and file the amended Articles with the Registrar. As among the Shareholders, this agreement prevails if it conflicts with the Articles.

Amending the constitution

If the constitution of the Company is inconsistent with this agreement, the Shareholders shall vote their Shares, and procure that the Directors act, to amend the constitution so that it matches this agreement, except that the Shareholders do not have to vote for an amendment that would unfairly reduce the rights of Shareholders of the same class. The Shareholders shall not vote for an amendment that is inconsistent with this agreement without the consent of all of them.

Filings with the Registrar

The Company shall make on time each filing with the Registrar that this agreement and the Regulations require, including allotments and changes to its share capital, appointments and removals of Directors, amendments to the Articles with the resolution that adopts them, and changes to its register of members and of persons with significant control, and shall give each Shareholder a copy of anything filed that affects its rights.

Regulated activities and approvals

If the Company or a member of its group carries on a regulated activity, the Shareholders acknowledge that a transfer or issue of Shares that takes a person across a control threshold set by the regulator may need prior approval. No such transfer, issue or Exit completes until approval has been given, the Company shall apply for it, and each Shareholder concerned shall give the information required. The conditions of the approval override the timetable in the Right of first refusal, Tag-along and Drag-along clauses.

Duration

This agreement starts on the date of this agreement and continues until the earliest of: an Exit completes; the Shareholders agree in writing to end it; only one person holds all the Shares; or the Company is wound up and removed from the register. A Shareholder that ceases to hold any Shares stops being bound by this agreement, except for the clauses that survive.

Clauses that survive

The provisions of this agreement on confidentiality, restrictive covenants (including any non-compete and non-solicitation undertakings, for the periods they state), warranties, notices, governing law and the resolution of disputes, rights that have already arisen and liability for an earlier breach continue after this agreement ends or a Shareholder stops being bound by it.

Notices

A notice under this agreement must be in writing and sent by hand, by courier, or by email, to the address or email address given for that party in the Parties clause or later notified, and a notice to the Company is sent to its registered office, marked for the attention of the Board.

When a notice is received

A notice delivered by hand or courier is received when it is left at the address, an email is received at the time it is sent if sent before 5 pm on a Business Day, and otherwise at 9 am on the next Business Day, unless the sender gets a bounce-back or failure message.

No partnership or agency

Nothing in this agreement makes the parties partners or agents of each other, and no party may bind another or the Company except as this agreement expressly states.

Entire agreement

This agreement, with the constitution of the Company and any deed of adherence, is the entire agreement among the parties about its subject matter, and replaces earlier discussions and drafts. A party has no claim for a statement that this agreement does not contain, except for fraud.

Variation

A change to this agreement is effective only if it is in writing and signed by Shareholder 1, Shareholder 2 and the Company, and, for a change that would impose an additional obligation on another Shareholder, by that Shareholder as well. A change that treats a Shareholder differently from the other Shareholders of the same class needs that Shareholder's consent.

No waiver

If a party delays or does not exercise a right, it does not lose it. A waiver is effective only if given in writing by the party waiving, and applies only to the matter and the time it states.

Assignment

A party may not assign or transfer its rights or obligations under this agreement except together with the Shares to which they relate, and only as this agreement permits.

Severance

If any provision of this agreement is or becomes invalid or unenforceable, the remaining provisions are not affected, and the parties shall replace it with a valid provision that has the closest possible effect.

English common law principles

The parties intend this agreement to be read in the light of English common law as it applies in ADGM, and decisions of the courts of England and Wales on the meaning of terms such as reasonable endeavours and penalty have precedential value in the ADGM Courts, which may depart from them only where the circumstances of ADGM require. A reference to good faith in this agreement is a reference to honesty and not to any wider fiduciary duty between the Shareholders.

Further assurance

Each party shall sign and do all things that are reasonably needed to give effect to this agreement, including passing resolutions, signing transfer documents and filing notices with the registrar or authority that keeps the company's records.

Costs

Each party bears its own costs of negotiating and signing this agreement. The Company bears the costs of any amendment to its constitution and of any share issue needed to implement this agreement.

Third-party rights

The Company, and any Permitted Transferee that has signed a deed of adherence, may enforce the provisions of this agreement expressed to benefit it. No other person who is not a party may enforce a provision of this agreement, and the parties may vary or end it without the consent of anyone who is not a party.

Counterparts and electronic signature

This agreement may be signed in counterparts, and by electronic signature to the extent the law allows, and each counterpart is an original and all together are one agreement. The parties may sign by electronic signature. Any provision that is to take effect as a deed, including a power of attorney that is to be irrevocable, shall be signed with the formalities of a deed that apply in ADGM.

Dispute escalation

Before starting proceedings other than for urgent relief, a party shall give notice of a dispute, and the Shareholders' senior representatives shall meet within 15 Business Days and try in good faith to settle it. A party may start proceedings after 30 days from the notice if the dispute has not been settled.

Injunctive relief

Damages alone would not be an adequate remedy for a breach of the transfer, voting, Reserved Matters, confidentiality or covenant provisions of this agreement, and a party may seek an injunction or specific performance for any such breach, in addition to any other remedy.

Governing law

This agreement and any dispute or claim arising out of or in connection with it, including a non-contractual claim, are governed by the laws of ADGM, including the Regulations and English common law as applied in ADGM.

ADGM Courts or arbitration

The ADGM Courts have exclusive jurisdiction to settle any dispute arising out of or in connection with this agreement. A party shall consider before starting proceedings where a judgment will need to be enforced and against which assets.