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Disability Buy Sell Agreement
"I need a Disability Buy Sell Agreement for my medical practice partnership with three other doctors in Cape Town, with specific provisions for partial disability and a six-month assessment period before triggering the buy-out clause."
1. Parties: Identification of all business owners participating in the agreement
2. Background: Context of the business relationship and purpose of the agreement
3. Definitions: Key terms including 'Disability', 'Business Interest', 'Purchase Price', 'Triggering Event', and other relevant definitions
4. Purchase Obligation: Mandatory obligation to purchase/sell business interest upon disability
5. Definition of Qualifying Disability: Detailed criteria for what constitutes a disability triggering the agreement
6. Valuation Method: Agreed method for determining the purchase price of business interests
7. Payment Terms: Structure and timing of payments for the purchase of business interests
8. Insurance Provisions: Requirements for disability insurance policies funding the agreement
9. Notice Requirements: Procedures for notification of disability and intent to trigger agreement
10. Medical Examination: Requirements for medical verification of disability
11. Transfer Procedures: Process for transferring business interests upon disability
12. Representations and Warranties: Standard business representations by all parties
13. Dispute Resolution: Procedures for resolving disagreements
14. General Provisions: Standard clauses including governing law, amendments, and notices
1. Cross-Purchase vs. Entity Purchase: Optional section when flexibility is needed in the purchase structure
2. Partial Disability Provisions: Include when parties want to address partial disability scenarios
3. Recovery Provisions: Include when parties want to address potential recovery from disability
4. Right of First Refusal: Optional where parties want additional control over ownership transfers
5. Tax Provisions: Detailed tax handling where specific tax treatment is desired
6. Family Member Rights: Include when family members have specific rights or roles
7. Business Continuation: Include when specific provisions for business management during transition are needed
1. Schedule A - Current Business Interests: Details of each owner's current business interests and shareholding
2. Schedule B - Insurance Policies: Details of disability insurance policies funding the agreement
3. Schedule C - Valuation Formula: Detailed methodology for business valuation
4. Schedule D - Medical Practitioners: List of approved medical practitioners for disability verification
5. Appendix 1 - Definition of Disability: Detailed medical criteria for qualifying disabilities
6. Appendix 2 - Transfer Documents: Pro forma transfer documentation
7. Appendix 3 - Notice Forms: Standard forms for various required notices under the agreement
Authors
Professional Services
Medical Practices
Legal Practices
Engineering Firms
Consulting Services
Manufacturing
Retail
Technology
Construction
Architecture
Financial Services
Real Estate
Healthcare
Small and Medium Enterprises
Family Businesses
Legal
Finance
Executive
Risk Management
Compliance
Corporate Governance
Insurance
Treasury
Business Development
Operations
Business Owner
Managing Director
Chief Executive Officer
Partner
Company Director
Chief Financial Officer
General Counsel
Risk Manager
Corporate Lawyer
Financial Director
Business Development Director
Operations Director
Company Secretary
Compliance Officer
Insurance Manager
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