Michigan Cross-Purchase Agreement of Professional Partnership with Life insurance to Fund Purchase of Deceased Partner's Interest

• Category: Partnerships - Agreements
• State: Multi-State
• Control #: US-0925BG
• Format: Word; Rich Text

Description

A cross-purchase agreement sets forth how ownership in a business transfers if the owner dies, retires or becomes disabled. The parties to a cross-purchase agreement always include a seller and a buyer. Cross-purchase agreements aim to ensure that sellers (or their beneficiaries) receive and buyers pay a fair price for their interests.
Some cross-purchase agreements use a dollar amount to calculate the buy-out price, while others use a formula. A valuation of the interest that is the subject of the agreement should be made periodically.