Free Shareholder Agreement for Private Company

1. Introduction

This Shareholder Agreement ("Agreement") is made and entered into as of [Date], by and among [Your Company Name], a [State/Country] Corporation, with its principal office at [Your Company Address] ("Company") and the undersigned shareholders ("Shareholders"). The purpose of this Agreement is to define the rights and obligations of the Shareholders and to establish the terms and conditions for the governance of the Company.

2. Definitions

For the purposes of this Agreement, the following terms shall have the meanings set forth below:

2.1 "Shares"

"Shares" means the shares of common stock of the Company.

2.2 "Shareholder"

"Shareholder" refers to any individual or entity owning Shares issued by the Company.

3. Shareholder Obligations

Each Shareholder agrees to abide by the following obligations:

3.1 Compliance with Laws

Shareholders shall comply with all applicable laws and regulations in relation to their ownership of Shares and their activities concerning the Company.

3.2 Confidentiality

Shareholders shall maintain the confidentiality of any proprietary information regarding the Company and shall not disclose such information to any third party without the Company's consent.

4. Governance and Management

The governance and management of the Company shall be executed as follows:

4.1 Board of Directors

The Company shall be governed by a Board of Directors, elected by the Shareholders, to oversee the strategic direction and operations of the Company.

4.2 Meetings

Regular meetings of the Board of Directors and Shareholders shall be held in accordance with the Company's by-laws.

5. Transfer of Shares

Restrictions and processes related to the transfer of Shares shall include:

5.1 Right of First Refusal

If a Shareholder wishes to sell any Shares, the remaining Shareholders must be given the right of first refusal to purchase such Shares.

5.2 Transfer Approval

Any transfer of Shares must be approved by a majority of the Shareholders.

6. Dispute Resolution

Any disputes arising out of or related to this Agreement shall be resolved through the following process:

6.1 Mediation

The parties agree to attempt resolution through mediation before resorting to litigation.

6.2 Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State/Country].

7. Amendments

Any amendments to this Agreement must be made in writing and signed by all Shareholders.

8. Signatures

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

[YOUR COMPANY NAME]
Shareholder

Shareholder

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