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SampleCorporate Cross PurchaseBuySell Agreements sample agreement has been prepared as a guide to assist attorneys. As a sample agreement, this document cannot be used as a final draft without modification
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Corporate cross purchase is a method used by corporations to buy out the ownership interest of a deceased or departing shareholder.
Any corporation that has shareholders who have agreed to a cross purchase agreement.
Corporate cross purchases are typically completed by following the terms outlined in the cross purchase agreement, which may include notifying the other shareholders of the intention to purchase the departing shareholder's shares.
The purpose of corporate cross purchase is to provide a mechanism for the remaining shareholders to purchase the shares of a departing shareholder in the event of their death or departure from the company.
The corporate cross purchase agreement, details of the shares being purchased, and the valuation method used to determine the price of the shares.
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