Michigan Cross-Purchase Agreement among Shareholders of Close Corporation --Purchase by Surviving Shareholders of Interest of Withdrawing or Deceased Shareholder -- Corporation has Option if other Shareholders do not Exercise Option
Category:
State:
Multi-State
Control #:
US-0924BG
Format:
Word;
Rich Text
Instant download
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.
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