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Buy Sell Agreement Life (Insurance) Template for Netherlands

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Key Requirements PROMPT example:

Buy Sell Agreement Life (Insurance)

"Need a Buy Sell Agreement Life (Insurance) for our Amsterdam-based accounting partnership with 4 partners, incorporating cross-purchase provisions and planning to implement by March 2025, with particular emphasis on partner retirement and succession planning."

Document background
The Buy Sell Agreement Life (Insurance) is a crucial document for businesses operating under Dutch law that want to ensure smooth ownership transition in case of an owner's death. It's particularly vital for private companies, partnerships, and family businesses where continuity and stability are essential. The agreement coordinates life insurance policies with business succession, establishing clear procedures for valuation, purchase obligations, and funding mechanisms. Under Netherlands jurisdiction, this document must comply with both insurance regulations (Wet op het financieel toezicht) and corporate law requirements. It typically includes detailed provisions for policy maintenance, premium payments, and beneficiary designations, while addressing Dutch tax implications and inheritance considerations.
Suggested Sections

1. Parties: Identification of all parties: business owners, company entity, and insurance company

2. Background: Context of the agreement, business ownership structure, and purpose of the buy-sell arrangement

3. Definitions: Defined terms including triggering events, fair market value, insurance proceeds, and other key concepts

4. Purchase Obligation: Core obligations to purchase/sell ownership interests upon triggering events

5. Insurance Policy Requirements: Specifications for life insurance policies, including coverage amounts and maintenance requirements

6. Valuation Method: Agreed method for determining business value and purchase price

7. Payment Terms: Structure and timing of payments for purchase of ownership interests

8. Triggering Events: Detailed description of events activating the buy-sell provisions (death, disability, etc.)

9. Rights and Obligations: Ongoing responsibilities of all parties regarding insurance policies and ownership interests

10. Tax Provisions: Treatment of tax implications and responsibilities

11. Compliance with Laws: Provisions ensuring compliance with Dutch insurance and financial regulations

12. Amendment and Termination: Procedures for modifying or ending the agreement

13. Governing Law and Jurisdiction: Specification of Dutch law application and dispute resolution procedures

Optional Sections

1. Disability Provisions: Additional provisions for buy-out in case of permanent disability, used when disability insurance is included

2. Cross-Purchase Structure: Specific provisions for agreements where owners purchase directly from each other, rather than entity purchase

3. Entity Purchase Structure: Specific provisions for agreements where the company purchases the interests

4. Hybrid Structure: Combines elements of cross-purchase and entity purchase, used for flexible arrangements

5. Family Transfer Provisions: Special terms for transfers to family members, used when family succession is contemplated

6. International Provisions: Additional terms for cross-border implications, used when owners or operations span multiple countries

7. Share Transfer Restrictions: Additional restrictions on transfer of ownership, used for closely held businesses

Suggested Schedules

1. Schedule A - Insurance Policy Details: Specific information about each insurance policy, including policy numbers and coverage amounts

2. Schedule B - Ownership Information: Current ownership structure and percentages

3. Schedule C - Valuation Formula: Detailed methodology for calculating business value

4. Schedule D - Premium Payment Schedule: Breakdown of insurance premium payments and responsibilities

5. Appendix 1 - Consent Forms: Required forms and authorizations for insurance policies

6. Appendix 2 - Medical Information Requirements: Specified medical information and examination requirements

7. Appendix 3 - Corporate Resolutions: Required corporate authorizations for agreement execution

8. Appendix 4 - Tax Calculations: Methodology for tax implications and calculations

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 | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses



































Relevant Industries

Professional Services

Manufacturing

Technology

Healthcare

Retail

Construction

Family Businesses

Financial Services

Consulting

Real Estate

Agriculture

Transportation and Logistics

Relevant Teams

Legal

Finance

Tax

Compliance

Risk Management

Corporate Governance

Insurance

Treasury

Executive Leadership

Business Development

Relevant Roles

CEO

Business Owner

Managing Director

Chief Financial Officer

General Counsel

Corporate Lawyer

Insurance Broker

Tax Advisor

Financial Director

Risk Manager

Compliance Officer

Business Succession Planner

Corporate Secretary

Partner (Professional Services)

Family Business Advisor

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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