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Buy Sell Agreement Cross Purchase Template for Singapore

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Key Requirements PROMPT example:

Buy Sell Agreement Cross Purchase

"Need a Buy Sell Agreement Cross Purchase for our Singapore tech startup with three founders, where each shareholder will purchase shares proportionally upon a co-founder's departure, with life insurance funding mechanism and quarterly valuation updates."

What is a Buy Sell Agreement Cross Purchase?

The Buy-Sell Agreement Cross Purchase is essential for companies in Singapore seeking to maintain control over ownership transitions and ensure business continuity. This agreement is particularly valuable for closely-held companies and partnerships where maintaining control among existing shareholders is crucial. It provides a predetermined framework for share transfers, establishing clear valuation methods, funding mechanisms, and procedures for executing the purchase when trigger events occur. Under Singapore law, the agreement must comply with the Companies Act, Stamp Duties Act, and other relevant legislation, while addressing specific local requirements for share transfers and corporate governance.

What sections should be included in a Buy Sell Agreement Cross Purchase?

1. Parties: Identification and details of all participating shareholders

2. Background: Context of the agreement and current shareholding structure

3. Definitions: Key terms used throughout the agreement

4. Purchase Obligation: Terms triggering the obligation to purchase shares

5. Purchase Price: Methodology for determining share value and payment terms

6. Funding Mechanism: How purchase will be funded, including insurance provisions if applicable

7. Transfer Procedure: Process for executing the share transfer

8. Governing Law: Specification of Singapore law as governing law

What sections are optional to include in a Buy Sell Agreement Cross Purchase?

1. Life Insurance Provisions: Details of life insurance policies funding the agreement when life insurance is used as funding mechanism

2. Disability Provisions: Provisions for purchase in case of disability, included when disability trigger is required

3. Valuation Methods: Detailed valuation procedures when complex valuation methods are required

4. Right of First Refusal: Provisions for voluntary transfers when voluntary sales are contemplated

What schedules should be included in a Buy Sell Agreement Cross Purchase?

1. Schedule 1: Shareholder Details: List of current shareholders and shareholdings

2. Schedule 2: Valuation Formula: Agreed methodology for share valuation

3. Schedule 3: Insurance Policies: Details of life insurance policies if applicable

4. Schedule 4: Share Transfer Form: Pro-forma share transfer documentation

5. Schedule 5: Company Information: Key company details and structure

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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Industries

Companies Act (Cap. 50): Primary legislation governing corporate entities in Singapore, covering share transfers, corporate governance requirements, directors' duties and obligations, and share capital structure regulations

Civil Law Act (Cap. 43): Fundamental contract law legislation covering requirements for valid contracts, consideration requirements, and capacity to contract

Securities and Futures Act (Cap. 289): Legislation governing securities trading, particularly relevant for publicly listed companies, including disclosure requirements and trading regulations

Stamp Duties Act (Cap. 312): Legislation governing stamp duty obligations for share transfers and related documentation requirements for duty assessment

Income Tax Act (Cap. 134): Tax legislation covering implications of share transfers, capital gains considerations, and tax clearance requirements

Personal Data Protection Act 2012: Legislation governing the handling of personal information, including consent requirements and data protection obligations

Competition Act (Cap. 50B): Legislation governing competition law considerations, including merger control provisions for larger transactions

Singapore Financial Reporting Standards: Accounting standards framework governing valuation methods and financial statement requirements

Articles of Association/Constitution: Company's governing document that may contain specific provisions affecting share transfers and corporate actions

Existing Shareholders' Agreements: Pre-existing contracts between shareholders that may affect or restrict share transfers and corporate actions

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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