Shareholder Exit Agreement for the Netherlands

Shareholder Exit Agreement Template for Netherlands

A comprehensive legal agreement governed by Dutch law that sets out the terms and conditions under which one or more shareholders will exit their ownership position in a company. The document details the mechanism for share transfer, valuation methodology, payment terms, and mutual obligations of all parties involved. It ensures compliance with Dutch corporate law requirements, particularly those outlined in the Dutch Civil Code (Burgerlijk Wetboek), while protecting the interests of both the departing shareholder(s) and the company. The agreement includes provisions for confidentiality, non-compete obligations, and the ongoing responsibilities of all parties post-transaction.

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What is a Shareholder Exit Agreement?

The Shareholder Exit Agreement is a crucial document used when one or more shareholders wish to terminate their ownership interest in a company under Dutch law. This agreement becomes necessary in various scenarios, including retirement, strategic divestment, dispute resolution, or when a shareholder wishes to pursue other opportunities. The document comprehensively addresses share valuation, transfer mechanics, payment terms, and post-exit obligations, ensuring compliance with Dutch corporate law requirements. It protects both the departing shareholder's interests and the company's stability by clearly defining the exit process, financial terms, and ongoing obligations such as confidentiality and non-competition. The agreement must align with the Dutch Civil Code (Burgerlijk Wetboek) provisions regarding share transfers and corporate governance, while also considering tax implications and potential regulatory requirements.

What sections should be included in a Shareholder Exit Agreement?

1. Parties: Identification of all parties to the agreement, including the exiting shareholder(s), remaining shareholders, and the company

2. Background: Context of the agreement, including current shareholding structure and reason for exit

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

4. Exit Trigger Events: Comprehensive list of events that can trigger the exit provisions

5. Share Transfer Mechanics: Detailed process for executing the share transfer, including timing and documentation requirements

6. Valuation Mechanism: Method for determining the fair value of the shares, including appointment of valuators if required

7. Payment Terms: Structure and timing of payment for the shares, including any installment arrangements

8. Representations and Warranties: Standard representations and warranties from all parties, particularly regarding share ownership and authority to sell

9. Confidentiality: Obligations regarding confidential information before, during, and after the exit

10. Non-Compete and Non-Solicitation: Restrictions on the exiting shareholder's future business activities

11. Release and Discharge: Mutual release of claims and ongoing obligations post-exit

12. Tax Matters: Allocation of tax liabilities and responsibilities related to the transfer

13. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Shareholder Exit Agreement?

1. Drag-Along Rights: Include when majority shareholders want the right to force minority shareholders to join in the sale of shares

2. Tag-Along Rights: Include when minority shareholders should have the right to join in the sale of shares on the same terms

3. Purchase Price Adjustments: Include when the initial purchase price might need adjustment based on future events or discoveries

4. Earn-Out Provisions: Include when part of the exit payment will be contingent on future performance

5. Intellectual Property Rights: Include when the exiting shareholder has been involved in IP development

6. Employee Matters: Include when the exiting shareholder is also an employee or director

7. Continuing Shareholder Obligations: Include when certain obligations need to survive the exit

8. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods before litigation

What schedules should be included in a Shareholder Exit Agreement?

1. Schedule 1: Share Details: Details of shares being transferred, including class, number, and nominal value

2. Schedule 2: Completion Obligations: Checklist of actions and documents required for completing the transfer

3. Schedule 3: Valuation Methodology: Detailed explanation of the agreed valuation method and calculations

4. Schedule 4: Payment Schedule: If payment is in installments, detailed payment dates and amounts

5. Schedule 5: Warranties: Detailed list of warranties given by the exiting shareholder

6. Schedule 6: Company Information: Key company information including assets, liabilities, and material contracts

7. Appendix A: Share Certificate(s): Copies of relevant share certificates

8. Appendix B: Board Resolutions: Copies of board resolutions approving the transfer

9. Appendix C: Existing Shareholders Agreement: Copy of current shareholders agreement being superseded or amended

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

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Manufacturing

Professional Services

Real Estate

Retail

Healthcare

Financial Services

Media and Entertainment

Energy

Construction

Agriculture

Transportation and Logistics

Education

Hospitality

Consulting

Relevant Teams

Legal

Finance

Corporate Governance

Executive Leadership

Board of Directors

Compliance

Tax

Corporate Affairs

Shareholder Relations

Risk Management

Company Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Lawyer

Company Secretary

Legal Director

Financial Director

Corporate Governance Officer

Shareholder Relations Manager

Business Development Director

Managing Director

Board Member

Commercial Director

Investment Manager

Corporate Finance Manager

Tax Director

Compliance Officer

Risk 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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