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Buy Sell Life Insurance Agreement
"I need a Buy Sell Life Insurance Agreement for my technology startup with three equal shareholders, where the insurance policies should cover both death and permanent disability, and the business valuation should be based on a multiple of EBITDA with annual updates starting January 2025."
1. Parties: Identification of all involved parties including the business entity, shareholders/partners, and the insurance company
2. Background: Context of the agreement, including business ownership structure and purpose of the buy-sell arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Purchase Obligation: Terms and conditions triggering the purchase obligation (death, disability, retirement)
5. Insurance Policy Requirements: Specifications of required insurance coverage, policy ownership, and beneficiary designations
6. Premium Payments: Responsibilities and arrangements for payment of insurance premiums
7. Valuation Method: Agreed method for determining the purchase price of business interests
8. Payment Terms: Structure and timing of payments for purchased interests
9. Rights and Obligations: Detailed rights and obligations of all parties regarding policy maintenance and claims
10. Tax Provisions: Treatment of tax implications and responsibilities
11. Duration and Termination: Terms for agreement duration and conditions for termination
12. Governing Law and Jurisdiction: Specification of Belgian law application and jurisdiction
13. Notices: Process for formal communications between parties
14. Execution: Signature requirements and execution process
1. Disability Provisions: Additional terms for handling permanent disability scenarios, used when disability trigger is included
2. Cross-Purchase vs. Entity Purchase: Specific structure of purchase arrangement, included when flexibility between methods is desired
3. Retirement Provisions: Terms for handling voluntary retirement triggers, included when retirement is a trigger event
4. Divorce Provisions: Handling of interests in case of shareholder divorce, included for family businesses
5. Competition Restrictions: Non-compete and non-solicitation provisions, included when protecting business interests
6. Minority Interest Protection: Special provisions protecting minority shareholders, used with varying ownership percentages
7. International Aspects: Special provisions for cross-border implications, used when international elements exist
1. Schedule A - Insurance Policy Details: Specific details of insurance policies including policy numbers, coverage amounts, and insurers
2. Schedule B - Business Valuation Formula: Detailed methodology for calculating business value and purchase price
3. Schedule C - Ownership Structure: Current ownership percentages and structure of the business
4. Schedule D - Premium Payment Schedule: Detailed schedule of premium payments and allocation among parties
5. Appendix 1 - Consent Forms: Required insurance and medical information release forms
6. Appendix 2 - Certificate of Corporate Resolution: Corporate authorization for entering into the agreement
7. Appendix 3 - Specimen Insurance Policies: Sample policies showing terms and conditions of coverage
Authors
Professional Services
Manufacturing
Retail
Technology
Healthcare
Construction
Financial Services
Family Businesses
Consulting
Real Estate
Agriculture
Transportation
Hospitality
Legal
Finance
Executive Leadership
Risk Management
Compliance
Corporate Governance
Treasury
Business Development
Insurance
Corporate Affairs
CEO
Managing Director
Business Owner
Partner
Chief Financial Officer
Legal Counsel
Corporate Lawyer
Risk Manager
Insurance Manager
Succession Planning Advisor
Corporate Secretary
Finance Director
Business Development Director
Shareholder
Board Member
Compliance Officer
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