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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."
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
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
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
Professional Services
Manufacturing
Technology
Healthcare
Retail
Construction
Family Businesses
Financial Services
Consulting
Real Estate
Agriculture
Transportation and Logistics
Legal
Finance
Tax
Compliance
Risk Management
Corporate Governance
Insurance
Treasury
Executive Leadership
Business Development
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
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