Entity Purchase Agreement for the Netherlands

Entity Purchase Agreement Template for Netherlands

A comprehensive legal agreement governed by Dutch law that documents the terms and conditions for the purchase and sale of a business entity. This agreement outlines all aspects of the transaction, including purchase price, payment terms, warranties, representations, conditions precedent, and post-closing obligations. It incorporates specific requirements of Dutch corporate law, including mandatory notarial involvement for share transfers, works council considerations, and compliance with Dutch Civil Code provisions. The agreement serves as the primary transaction document that governs the rights and obligations of all parties involved in the business acquisition.

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What is a Entity Purchase Agreement?

The Entity Purchase Agreement is the primary transaction document used in business acquisitions under Dutch law. It is employed when one entity wishes to acquire another entity, whether through a share purchase or asset purchase structure. The agreement comprehensively addresses all aspects of the transaction, including purchase price mechanisms, warranties, indemnities, and closing conditions. It must comply with specific Dutch legal requirements, such as notarial execution for share transfers and potential works council consultation. The document typically includes detailed schedules and exhibits covering due diligence findings, disclosure matters, and specific arrangements regarding employees, assets, and liabilities. This agreement is crucial for both domestic Dutch transactions and cross-border acquisitions involving Dutch entities, requiring careful consideration of local corporate law, tax implications, and regulatory requirements.

What sections should be included in a Entity Purchase Agreement?

1. Parties: Identification of the seller(s), purchaser(s) and any guarantors

2. Background: Context of the transaction and brief description of the target entity

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including subject matter and purchase price

5. Purchase Price and Payment: Detailed price structure, payment terms, and any adjustment mechanisms

6. Conditions Precedent: Conditions that must be satisfied before closing

7. Pre-Closing Obligations: Parties' obligations between signing and closing, including conduct of business

8. Closing: Mechanics and requirements for completion of the transaction

9. Warranties: Seller's representations and warranties about the target entity

10. Indemnities: Specific indemnification obligations of the parties

11. Limitations of Liability: Limitations on warranty claims and indemnification obligations

12. Confidentiality: Obligations regarding confidential information

13. Non-Competition and Non-Solicitation: Restrictions on seller's competing activities post-closing

14. Governing Law and Jurisdiction: Choice of Dutch law and jurisdiction provisions

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Entity Purchase Agreement?

1. Earn-out Provisions: Used when part of purchase price is contingent on future performance

2. Employee Matters: Required when specific employee arrangements or transfers need to be addressed

3. Real Estate: Needed when target entity owns significant real estate assets

4. Intellectual Property: Important when IP assets are a key component of the transaction

5. Environmental Matters: Required for businesses with environmental risks or compliance obligations

6. Data Protection: Detailed provisions when significant personal data is involved

7. Transition Services: Used when seller will provide post-closing services to the target

8. Bank Financing: Required when purchase is contingent on third-party financing

9. Tax Covenant: Detailed tax arrangements beyond standard tax warranties

10. Works Council Provisions: Required when Dutch works council approval is needed

What schedules should be included in a Entity Purchase Agreement?

1. Definitions Schedule: Detailed definitions of terms used in the agreement

2. Warranties Schedule: Detailed seller warranties about the target entity

3. Disclosure Schedule: Seller's disclosures against the warranties

4. Target Entity Information: Details of target entity including corporate information and subsidiaries

5. Properties Schedule: List and details of real estate and material assets

6. Material Contracts: List and summary of key contracts

7. Intellectual Property Schedule: List of IP rights and registrations

8. Employee Information: Details of key employees and employment terms

9. Permitted Leakage: Agreed exceptions to no leakage covenant in locked box deals

10. Closing Actions: Detailed list of closing deliverables and actions

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

12. Form of Notarial Deed: Required form for transfer of shares under Dutch law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Healthcare

Real Estate

Financial Services

Professional Services

Retail

Energy

Transportation

Construction

Agriculture

Media and Entertainment

Telecommunications

Education

Hospitality

Relevant Teams

Legal

Finance

Mergers & Acquisitions

Corporate Development

Executive Management

Risk & Compliance

Tax

Strategy

Business Development

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Lawyer

Legal Director

Head of Mergers & Acquisitions

Finance Director

Corporate Development Director

Investment Manager

Transaction Manager

Due Diligence Manager

Risk Manager

Compliance Officer

Business Development Director

Strategy Director

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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