Entity Purchase Buy-Sell Agreement

Entity Purchase Buy-Sell AgreementEntity Purchase Buy-Sell Agreement is and entity purchase agreement in which each owner agrees to purchase the deceased owner’s business interest. The business buys a life insurance policy on each owner’s life in an amount that equals his or her respective ownership in the business. The policy proceeds are used to acquire stock from the deceased owner’s estate when a triggering event, such as a death, disability or retirement occurs.