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Buy Sell Agreement Cross Purchase Template for Singapore

A Buy-Sell Agreement (Cross Purchase) under Singapore law is a legally binding contract between shareholders that establishes a framework for the purchase and sale of shares upon specified trigger events. The agreement ensures business continuity by providing a clear mechanism for remaining shareholders to purchase the shares of a departing shareholder, whether due to death, disability, retirement, or other specified events. It incorporates Singapore's specific legal requirements regarding share transfers, stamp duties, and corporate governance.

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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

Jurisdiction

Singapore

Cost

Free to use

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