The redemption agreement is also like a cross buy sell agreement because in this type of contract the company or business will buys the exiting shares of such shareholder who has unfortunately died. We can also call this agreement as a buy sell agreement of deceased owner’s share. Here the company which typically have a life insurance policy for the shareholders and the other partners of business will buy the shares of deceased person with the help of resulting money of company. Evidently, this agreement is bit different then cross agreement because here company will directly buy the shares of deceased person whereas in cross the other shareholders will buy.
Redemption Buy Sell Agreement preview;