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Equity Transfer Agreement Template for Netherlands

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Key Requirements PROMPT example:

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."

Document background
The Equity Transfer Agreement is a crucial document used in Dutch corporate transactions when transferring ownership of shares between parties. It is essential for both private and public company transactions, though the requirements and complexity may vary. Under Dutch law, share transfers, particularly in private limited liability companies (BVs), must be executed through a notarial deed, making this agreement a foundational document that sets the stage for the formal transfer. The agreement typically includes detailed provisions on purchase price, payment terms, representations and warranties, conditions precedent, and post-closing obligations. It's commonly used in various contexts, from straightforward transfers between existing shareholders to complex M&A transactions, and must comply with relevant provisions of the Dutch Civil Code and corporate law.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Financial Services

Technology

Manufacturing

Real Estate

Professional Services

Healthcare

Retail

Energy

Telecommunications

Transportation and Logistics

Media and Entertainment

Construction

Agriculture

Mining and Natural Resources

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Tax

Board Secretariat

Treasury

Corporate Strategy

Risk Management

Relevant Roles

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

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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