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Equity Transfer Agreement
"I need an Equity Transfer Agreement under Dutch law for transferring 40% of shares in our tech startup from a founding shareholder to a new investor, with completion planned for March 2025 and including standard warranties and earn-out provisions."
1. Parties: Identification of the transferor(s) and transferee(s), including full legal names and addresses
2. Background: Context of the transaction, description of the target company, and purpose of the agreement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Sale and Purchase: Core transaction terms including description of shares being transferred and basic sale obligations
5. Purchase Price: Specification of consideration, payment terms, and any price adjustment mechanisms
6. Closing: Conditions precedent, closing mechanics, and timing of the transfer
7. Seller's Representations and Warranties: Standard warranties about share ownership, company status, and business operations
8. Buyer's Representations and Warranties: Basic warranties about buyer's capacity and authority to enter into the transaction
9. Covenants: Pre-closing and post-closing obligations of the parties
10. Indemnification: Liability and indemnification provisions for breach of warranties or other obligations
11. Confidentiality: Obligations regarding confidential information and public announcements
12. Governing Law and Jurisdiction: Choice of Dutch law and jurisdiction for dispute resolution
13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Non-Competition and Non-Solicitation: Required when seller needs to be restricted from competing or soliciting employees/customers
2. Employee Matters: Needed when specific arrangements for employees are part of the transaction
3. Tax Matters: Detailed tax provisions when specific tax arrangements or indemnities are required
4. Third Party Consents: When transfer requires specific third-party approvals or regulatory clearances
5. Transition Services: When seller will provide post-closing services to the target company
6. Earn-out Provisions: When part of purchase price is contingent on future performance
7. Bank Guarantees/Security: When payment security or third-party guarantees are required
8. Works Council Provisions: Required when works council consultation/approval is necessary under Dutch law
1. Schedule 1 - Details of the Company: Corporate information, share capital structure, and subsidiaries
2. Schedule 2 - Shares Being Transferred: Detailed description of shares including share numbers and certificates
3. Schedule 3 - Warranties: Detailed warranties about the company and its business
4. Schedule 4 - Disclosed Information: List of disclosure documents and due diligence information
5. Schedule 5 - Closing Actions: Detailed list of documents and actions required at closing
6. Schedule 6 - Purchase Price Calculation: Detailed methodology for price calculations and adjustments
7. Schedule 7 - Properties: List of company's real estate and lease agreements
8. Schedule 8 - Material Contracts: List of important contracts affecting the business
9. Appendix A - Form of Transfer Deed: Template for Dutch law notarial deed of transfer
10. Appendix B - Board Resolutions: Template corporate approvals required for the transfer
Authors
Financial Services
Technology
Manufacturing
Real Estate
Professional Services
Healthcare
Retail
Energy
Telecommunications
Transportation and Logistics
Media and Entertainment
Construction
Agriculture
Mining and Natural Resources
Legal
Finance
Corporate Development
Mergers & Acquisitions
Compliance
Tax
Board Secretariat
Treasury
Corporate Strategy
Risk Management
Chief Executive Officer
Chief Financial Officer
General Counsel
Corporate Lawyer
M&A Director
Investment Manager
Corporate Secretary
Finance Director
Business Development Director
Legal Counsel
Compliance Officer
Transaction Manager
Private Equity Manager
Corporate Development Manager
Shareholder Representative
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