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Sale Of Shares In Private Company Agreement Template for Netherlands

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Key Requirements PROMPT example:

Sale Of Shares In Private Company Agreement

"I need a Sale Of Shares In Private Company Agreement for the acquisition of a Dutch tech startup, where 60% of the purchase price will be paid at completion in March 2025 and 40% will be subject to an earn-out based on revenue targets over the next two years."

Document background
The Sale Of Shares In Private Company Agreement is a crucial document used in mergers and acquisitions involving Dutch private companies (BVs). It is the primary transaction document when acquiring or selling shares in a private company under Dutch law, requiring careful consideration of local legal requirements, including mandatory notarial involvement for share transfers. The agreement typically follows extensive due diligence and often builds upon terms agreed in a letter of intent or memorandum of understanding. It must comply with Dutch corporate law requirements, particularly Book 2 of the Dutch Civil Code, and includes comprehensive provisions covering everything from purchase price mechanisms to warranties and indemnities. The document is especially important as it must address specific Dutch legal concepts such as works council rights and requirements for board resolutions.
Suggested Sections

1. Parties: Identification of the Seller(s), Purchaser(s) and the Company

2. Background: Context of the transaction and current ownership structure

3. Definitions and Interpretation: Defined terms and rules of interpretation for the agreement

4. Sale and Purchase: Core transaction terms including shares being sold and purchase price

5. Conditions Precedent: Conditions that must be satisfied before completion can occur

6. Pre-Completion Obligations: Parties' obligations between signing and completion, including conduct of business requirements

7. Completion: Mechanics of completion, including timing, location, and actions required

8. Warranties: Seller's warranties regarding the shares, company, and business

9. Limitations on Liability: Limitations on warranty claims and general liability caps

10. Tax Covenants: Tax-related warranties and indemnities

11. Confidentiality: Obligations regarding transaction confidentiality and announcements

12. Notices: Process and requirements for formal notices under the agreement

13. General Provisions: Standard boilerplate provisions including governing law and jurisdiction

Optional Sections

1. Deferred Consideration: Required if part of the purchase price is to be paid later or is contingent on future events

2. Employee Matters: Include if there are specific arrangements regarding key employees or management

3. Non-Competition: Include if sellers are to be restricted from competing post-completion

4. Security for Claims: Include if any security (e.g., escrow) is required for warranty claims

5. Intellectual Property: Required if IP assets are material to the transaction

6. Real Estate: Include if company owns significant real estate assets

7. Bank Financing: Required if purchase is partially funded through bank financing

8. Works Council Provisions: Include if works council approval or consultation is required

9. Earn-out Provisions: Include if purchase price includes performance-based payments

Suggested Schedules

1. Details of the Company: Corporate information, share capital structure, and subsidiaries

2. Warranties: Detailed warranties regarding the company and its business

3. Properties: Details of owned and leased real estate

4. Intellectual Property Rights: List of IP rights owned or licensed by the company

5. Material Contracts: Summary of key commercial contracts

6. Employee Information: Details of employees, benefits, and pension arrangements

7. Completion Requirements: Detailed list of completion deliverables

8. Data Room Index: Index of due diligence materials provided

9. Disclosed Information: Information disclosed against the warranties

10. Form of Resignation Letters: Template resignation letters for outgoing directors

11. Form of Powers of Attorney: Template powers of attorney for completion actions

12. Tax Deed: Detailed tax indemnity provisions and mechanisms

Authors

Alex Denne

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

Manufacturing

Professional Services

Retail

Healthcare

Real Estate

Financial Services

Energy

Construction

Agriculture

Media & Entertainment

Logistics & Transportation

Food & Beverage

Pharmaceuticals

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Due Diligence

Risk Management

Corporate Finance

Strategy

Tax

Compliance

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Development Director

M&A Director

Legal Counsel

Finance Director

Business Development Manager

Investment Manager

Company Secretary

Transaction Manager

Due Diligence Manager

Integration Manager

Risk Manager

Corporate Finance 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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