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Joinder Agreement
I need a joinder agreement for a new subsidiary joining an existing consortium, ensuring alignment with the consortium's existing terms and conditions, including confidentiality and non-compete clauses. The agreement should specify the subsidiary's rights and obligations, and include a clause for dispute resolution under Dutch law.
What is a Joinder Agreement?
A Joinder Agreement lets new parties officially join an existing contract or legal arrangement under Dutch law. Think of it as a legal "add-on" that brings additional participants into an agreement without having to create an entirely new contract from scratch.
In the Netherlands, these agreements are especially common in mergers, investment deals, and partnership arrangements. They save time and resources by extending existing terms to new parties while keeping all the original provisions intact. Dutch courts recognize Joinder Agreements as binding documents when they meet basic contract requirements and clearly state the rights and obligations of the joining party.
When should you use a Joinder Agreement?
Use a Joinder Agreement when you need to add new parties to an existing contract in the Netherlands without redrafting the entire document. This comes up often in private equity deals, where new investors join a shareholders' agreement, or in commercial partnerships when bringing additional members into a consortium.
The agreement proves especially valuable during corporate restructurings, joint ventures, or when Dutch subsidiaries need to join their parent company's existing agreements. It streamlines the process by maintaining the original contract's terms while clearly defining the new party's rights and obligations. This approach saves time and legal costs compared to creating separate agreements for each new participant.
What are the different types of Joinder Agreement?
- Standard Joinder: Adds new parties to existing agreements, commonly used in Dutch M&A deals and investment rounds
- Shareholder Joinder: Specifically designed for adding new shareholders to existing shareholder agreements, including voting rights and share transfer provisions
- Credit Agreement Joinder: Used when new lenders or borrowers join syndicated loan agreements under Dutch banking regulations
- Partnership Joinder: Brings new partners into existing partnership agreements, detailing profit sharing and management rights
- Project-Specific Joinder: Tailored for construction or development projects, incorporating specific performance obligations and liability terms
Who should typically use a Joinder Agreement?
- Corporate Legal Teams: Draft and review Joinder Agreements to ensure compliance with Dutch law and protect company interests
- New Investors: Join existing investment agreements, particularly in private equity and venture capital deals
- Business Partners: Enter consortium agreements or joint ventures through joinder mechanisms
- External Legal Counsel: Advise on structure, negotiate terms, and ensure enforceability under Dutch regulations
- Company Directors: Execute agreements on behalf of their organizations and ensure proper corporate authorization
- Notaries: Authenticate signatures and verify legal compliance when Dutch law requires notarial involvement
How do you write a Joinder Agreement?
- Original Agreement Review: Obtain and analyze the existing agreement to understand joinder provisions and requirements
- Party Details: Gather complete legal names, registration numbers, and addresses of all joining parties
- Authorization Documents: Collect board resolutions or power of attorney proving signatories' authority
- Rights and Obligations: Clearly define what specific provisions apply to the new party
- Effective Date: Determine when the joinder takes effect and any conditions precedent
- Signature Requirements: Check if Dutch law requires notarization or specific execution formalities
- Existing Party Consent: Confirm and document any required approvals from current agreement parties
What should be included in a Joinder Agreement?
- Party Identification: Full legal names, registration numbers, and addresses of all joining parties
- Reference Agreement: Clear identification of the original agreement being joined, including date and parties
- Accession Declaration: Explicit statement that new party agrees to be bound by original agreement terms
- Rights and Obligations: Specific provisions applying to the joining party under Dutch law
- Effective Date: Clear statement of when the joinder takes effect
- Governing Law: Explicit reference to Dutch law jurisdiction
- Execution Block: Proper signature sections with notarial requirements if applicable
- Existing Party Consent: Documentation of required approvals from current parties
What's the difference between a Joinder Agreement and an Amendment Agreement?
A Joinder Agreement differs significantly from an Amendment Agreement, though both modify existing contracts. Understanding these distinctions helps you choose the right tool for your situation under Dutch law.
- Purpose: Joinder Agreements add new parties to existing agreements, while Amendment Agreements change the terms or conditions of the original contract
- Original Terms: Joinder Agreements keep the original agreement intact, simply extending its reach to new parties. Amendment Agreements actively modify the original terms
- Approval Requirements: Joinder Agreements typically need consent from existing parties but don't require all parties to re-sign. Amendment Agreements usually require signatures from all original parties
- Documentation Scope: Joinder Agreements focus on defining the new party's role and obligations. Amendment Agreements detail specific changes to contract terms
- Timing Impact: Joinder Agreements usually take effect immediately for new parties, while Amendment Agreements might have retroactive or future effective dates
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