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Option To Purchase Shares Agreement Template for Netherlands

An Option To Purchase Shares Agreement under Dutch law (governed by the Burgerlijk Wetboek) is a legally binding contract that grants the option holder the right, but not the obligation, to purchase a specified number of shares in a company at a predetermined price within a specified period. The agreement outlines essential terms including exercise price, duration, vesting conditions if applicable, and procedures for exercising the option. Under Dutch jurisdiction, specific attention is paid to corporate law requirements, shareholders' rights, and regulatory compliance, particularly regarding share transfer restrictions and corporate governance obligations.

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What is a Option To Purchase Shares Agreement?

The Option To Purchase Shares Agreement is a crucial document used in Dutch corporate practice to provide individuals or entities with the right to acquire shares in a company under specific conditions. This agreement type is commonly utilized for employee incentivization, investment arrangements, or strategic business relationships. Under Dutch law, particular attention must be paid to compliance with the Civil Code (Burgerlijk Wetboek), corporate governance requirements, and financial regulations. The document typically includes detailed provisions on exercise periods, price mechanisms, vesting schedules if applicable, and the rights and obligations of all parties involved. It's particularly relevant in scenarios involving startup companies, employee retention programs, or investment structures where immediate share ownership is not desired but future ownership rights are important.

What sections should be included in a Option To Purchase Shares Agreement?

1. Parties: Identification of the parties: the company issuing the options, the option holder, and any other relevant parties

2. Background: Context of the agreement, including the company's share capital structure and reason for granting options

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

4. Grant of Option: Details of the option grant, including number of shares, class of shares, and exercise price

5. Exercise Period: Time period during which the option may be exercised and any conditions affecting this period

6. Exercise Procedure: Process and formalities for exercising the option, including notice requirements and payment mechanisms

7. Share Rights: Rights attached to the shares upon exercise of the option

8. Transferability: Restrictions on transfer of the option rights and/or resulting shares

9. Termination: Circumstances under which the option agreement may be terminated

10. Adjustments: Provisions for adjusting the option terms in case of corporate events (e.g., stock splits, mergers)

11. Notices: Requirements for formal communications between parties

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

13. Execution: Signature blocks and execution formalities

What sections are optional to include in a Option To Purchase Shares Agreement?

1. Vesting Schedule: Include when options are subject to vesting conditions, typically in employee option agreements

2. Good Leaver/Bad Leaver: Include for employee option agreements to address treatment of options upon different types of employment termination

3. Tag-Along Rights: Include when option holders should have the right to participate in future sales of shares

4. Drag-Along Rights: Include when option holders can be forced to sell their shares in certain circumstances

5. Non-Competition and Confidentiality: Include when options are granted to employees or service providers

6. Tax Provisions: Include detailed tax provisions when specific tax treatment is intended or when options are part of employee compensation

7. Shareholders' Agreement Adherence: Include when option holders must accede to an existing shareholders' agreement upon exercise

8. Anti-Dilution Protection: Include for investor options to protect against dilution from future share issuances

What schedules should be included in a Option To Purchase Shares Agreement?

1. Details of Share Capital: Current share capital structure, including all share classes and rights

2. Form of Exercise Notice: Template notice for exercising the option

3. Deed of Adherence: Form of deed for adherence to shareholders' agreement upon exercise

4. Vesting Schedule Details: Detailed breakdown of vesting dates and conditions, if applicable

5. Warranties: Standard warranties to be given by the option holder upon exercise

6. Company's Articles of Association: Current articles of association of the company

7. Shareholders' Agreement: Copy of current shareholders' agreement, if relevant

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Netherlands

Cost

Free to use

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