Sales Of Shares Agreement Template for Netherlands

A comprehensive legal agreement governed by Dutch law that documents the terms and conditions for the sale and purchase of shares in a company. This agreement sets out the complete transaction structure, including purchase price, payment terms, warranties, indemnities, and conditions precedent. It incorporates Dutch legal requirements and corporate law principles, particularly from the Dutch Civil Code (Burgerlijk Wetboek). The document includes detailed provisions for pre-completion and post-completion obligations, regulatory compliance requirements, and specific Dutch corporate governance considerations.

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What is a Sales Of Shares Agreement?

The Sales Of Shares Agreement under Dutch law is a fundamental transaction document used when one party wishes to sell and another party wishes to acquire ownership of shares in a company. This comprehensive agreement is essential for both private and public company transactions in the Netherlands, though specific requirements may vary. It must comply with Dutch corporate law requirements, particularly the Dutch Civil Code (Burgerlijk Wetboek), and includes provisions for share transfer mechanics, purchase price determination, warranties and indemnities, conditions precedent, and completion procedures. The document is typically prepared following due diligence and requires careful consideration of Dutch corporate governance rules, regulatory requirements, and market practice. It serves as the primary transaction document in share acquisitions, often accompanied by various ancillary agreements and documents.

What sections should be included in a Sales Of Shares Agreement?

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

2. Background: Context of the transaction, including description of the target company and purpose of the agreement

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

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

5. Purchase Price: Detailed provisions on consideration, payment mechanics, and any price adjustments

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

7. Pre-Completion Obligations: Obligations of parties between signing and completion, including conduct of business requirements

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

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

10. Limitations on Liability: Limitations on warranty claims and general liability of the parties

11. Tax Covenants: Specific provisions dealing with tax matters and allocations

12. Confidentiality: Obligations regarding confidential information and announcements

13. General Provisions: Standard boilerplate clauses including notices, assignments, amendments

What sections are optional to include in a Sales Of Shares Agreement?

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

2. Non-Competition: Include when sellers need to be restricted from competing post-completion

3. Transitional Services: Include when seller will provide services to target company post-completion

4. Employee Matters: Include when specific arrangements for key employees or general workforce are needed

5. Real Estate: Include when target company has significant real estate assets requiring specific provisions

6. Intellectual Property: Include when IP assets are material to the transaction

7. Bank Finance: Include when transaction involves external financing arrangements

8. Works Council: Include when Dutch works council approval/consultation is required

What schedules should be included in a Sales Of Shares Agreement?

1. Details of the Target Company: Corporate information, shareholding structure, and subsidiaries

2. Warranties: Detailed warranties about the company, business, and assets

3. Disclosure Letter: Exceptions and qualifications to the warranties

4. Properties: Details of all real estate owned or leased by the target company

5. Intellectual Property Rights: List of all IP owned or licensed by the target company

6. Material Contracts: Summary of key commercial contracts

7. Employees: Details of employees, including key terms and benefits

8. Completion Requirements: Detailed list of documents and actions required at completion

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

10. Form of Powers of Attorney: Template powers of attorney if required for completion

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

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

Jurisdiction

Netherlands

Publisher

Genie AI

Cost

Free to use

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