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Stock Warrant Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Stock Warrant Agreement

"I need a Stock Warrant Agreement for our UAE-based technology company to issue warrants to a strategic investor, covering 100,000 shares at AED 50 per share, exercisable until March 2025, with standard anti-dilution protections."

Document background
Stock Warrant Agreements are essential instruments in UAE corporate finance, commonly used for raising capital, incentivizing investors, or as part of larger financing arrangements. These agreements must comply with UAE Federal Law No. 32 of 2021 and SCA regulations, making them distinct from similar instruments in other jurisdictions. The Stock Warrant Agreement typically outlines the warrant's exercise price, duration, number of shares available, adjustment mechanisms for corporate actions, and transfer restrictions. It's particularly relevant for companies seeking to attract strategic investors while maintaining current control, or as part of employee compensation packages. The document must address specific UAE requirements regarding foreign ownership, securities trading, and corporate governance, while also considering any relevant free zone regulations where applicable.
Suggested Sections

1. Parties: Identifies the issuing company and the warrant holder(s)

2. Background: Explains the context and purpose of the warrant issuance

3. Definitions: Defines key terms used throughout the agreement

4. Grant of Warrant: Specifies the terms of the warrant grant, including number of shares and exercise price

5. Exercise Period: Defines the timeframe during which the warrant can be exercised

6. Exercise Procedure: Details the process for exercising the warrant, including notice requirements and payment methods

7. Adjustment Provisions: Mechanisms for adjusting warrant terms in case of corporate actions (stock splits, dividends, etc.)

8. Representations and Warranties: Standard representations from both issuer and warrant holder

9. Transfer Restrictions: Limitations on the transfer of warrant rights

10. Termination: Circumstances under which the warrant agreement may be terminated

11. Notices: Communication requirements and methods between parties

12. Governing Law and Jurisdiction: Specifies UAE law as governing law and relevant jurisdiction

13. General Provisions: Standard boilerplate provisions including amendments, waivers, and severability

Optional Sections

1. Registration Rights: Include when the warrant holder requires rights to register the underlying shares for public trading

2. Anti-dilution Provisions: Include when additional protection against dilution is negotiated

3. Tag-Along Rights: Include when warrant holders are given the right to join in sale of shares by major shareholders

4. Regulatory Compliance: Include when specific UAE regulatory requirements need detailed coverage

5. Security Interest: Include when the warrant is secured by specific assets

6. Shareholder Rights: Include when warrant holders are granted specific shareholder rights prior to exercise

7. Foreign Ownership Provisions: Include when warrant holders include non-UAE nationals or entities

Suggested Schedules

1. Warrant Certificate: Form of the actual warrant certificate to be issued

2. Exercise Notice: Template for the warrant exercise notice

3. Calculation of Exercise Price: Detailed methodology for calculating the exercise price, including any adjustments

4. Corporate Authorizations: Copies of relevant board and shareholder resolutions

5. Shareholders Agreement: Terms of any applicable shareholders agreement that will bind the warrant holder upon exercise

6. Share Capital Structure: Current and post-exercise share capital structure of the company

7. Regulatory Approvals: Copies of required UAE regulatory approvals and permits

Authors

Alex Denne

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

Relevant legal definitions















































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Relevant Industries

Technology

Financial Services

Real Estate

Healthcare

Manufacturing

Energy

Telecommunications

E-commerce

Construction

Professional Services

Retail

Hospitality

Transportation

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Treasury

Compliance

Risk Management

Board of Directors

Executive Management

Corporate Governance

Investment Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Secretary

Investment Manager

Compliance Officer

Finance Director

Corporate Development Manager

Treasury Manager

Board Director

Company Secretary

Investment Banker

Securities Lawyer

Financial Controller

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

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