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Buy Sell Agreement (Insurance) Template for Belgium

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Key Requirements PROMPT example:

Buy Sell Agreement (Insurance)

"I need a Buy Sell Agreement (Insurance) under Belgian law for our technology consulting firm with three equal shareholders, where we want to ensure business continuity through life insurance policies with a minimum coverage of 鈧2 million per shareholder, including specific provisions for both death and permanent disability."

Document background
The Buy Sell Agreement (Insurance) is a critical document used in Belgian business planning to establish a predetermined framework for ownership transition in various scenarios. It addresses situations where business owners need to ensure smooth transfer of ownership interests upon specific trigger events, with insurance policies providing the necessary funding. This agreement type is particularly relevant in the Belgian market where business succession planning must comply with both national insurance regulations and EU directives. The document typically includes comprehensive details about insurance policy requirements, valuation methodologies, trigger events, and payment mechanisms. It's especially crucial for closely-held businesses, family enterprises, and professional practices operating under Belgian jurisdiction, where maintaining business continuity and protecting stakeholder interests are paramount considerations.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including the insurer, policyholder, and any other relevant parties

2. Background: Context of the agreement, including the business relationship and purpose of the insurance-based buy-sell arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including insurance-specific terminology

4. Purchase and Sale Obligations: Core provisions detailing the obligations to purchase and sell under specified trigger events

5. Insurance Policy Requirements: Specifications of required insurance policies, coverage amounts, and maintenance obligations

6. Trigger Events: Comprehensive list of events that activate the buy-sell provisions (death, disability, retirement, etc.)

7. Valuation Mechanism: Method for determining the purchase price of shares or interests, including periodic valuation requirements

8. Payment Terms: Structure and timing of payments, including the role of insurance proceeds

9. Rights and Obligations: Detailed responsibilities of each party regarding insurance maintenance, premium payments, and cooperation

10. Tax Provisions: Treatment of tax implications and responsibilities under Belgian tax law

11. Representations and Warranties: Standard and insurance-specific representations from all parties

12. Term and Termination: Duration of the agreement and circumstances allowing for termination

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

14. Notice Provisions: Procedures for providing notices under the agreement

15. Miscellaneous: Standard boilerplate provisions adapted to Belgian law requirements

Optional Sections

1. Drag-Along Rights: Optional section for when majority shareholders want the right to force minority shareholders to join in the sale

2. Tag-Along Rights: Optional section for when minority shareholders should have the right to join in a sale by majority shareholders

3. Cross-Purchase vs. Entity Purchase: Required only when the agreement allows for both types of purchase structures

4. Disability Buy-Out Provisions: Detailed section needed only if disability is included as a trigger event

5. Family Transfer Exceptions: Include when transfers to family members should be treated differently

6. Right of First Refusal: Optional section for cases where parties want pre-emptive rights on share transfers

7. International Provisions: Required only if any parties or assets are located outside Belgium

8. Data Protection Provisions: Detailed GDPR compliance section needed if significant personal data processing is involved

Suggested Schedules

1. Schedule 1 - Insurance Policy Details: Specific details of required insurance policies, including types, amounts, and insurers

2. Schedule 2 - Valuation Formula: Detailed methodology for business valuation, including any adjustments or special considerations

3. Schedule 3 - Shareholders/Partners List: Current list of all shareholders or partners and their respective interests

4. Schedule 4 - Premium Payment Schedule: Schedule of insurance premium payments and allocation among parties

5. Appendix A - Sample Notices: Template forms for various required notices under the agreement

6. Appendix B - Valuation Certificate: Template for periodic valuation certificates

7. Appendix C - Transfer Documentation: Standard forms for executing transfers under the agreement

8. Appendix D - Compliance Checklist: Checklist ensuring compliance with Belgian insurance regulations and requirements

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

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Relevant Industries

Professional Services

Manufacturing

Technology

Healthcare

Retail

Financial Services

Construction

Real Estate

Family Businesses

Consulting

Engineering

Distribution

Agriculture

Transportation

Energy

Relevant Teams

Legal

Finance

Risk Management

Compliance

Corporate Governance

Treasury

Executive Leadership

Insurance

Business Development

Corporate Affairs

Succession Planning

Relevant Roles

CEO

CFO

Business Owner

Managing Partner

Corporate Lawyer

Insurance Manager

Risk Manager

Financial Director

Company Director

Board Member

Compliance Officer

General Counsel

Partnership Manager

Treasury Manager

Business Development Director

Corporate Secretary

Succession Planning 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, 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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