Sometimes it is difficult to decide what type of buy-sell contract should be recommended in dealing with C Corporations. Should it be a share withdrawal plan financed by employer-specific insurance or a "cross purchase" plan financed by cross-owned insurance? It can be difficult to determine whether a cross-purchase-buy/sell agreement or share buyback plan is more appropriate at the time the plan is adopted. A wait-and-see agreement allows the owner(s) to wait for the first death or other triggering event before deciding whether the business or owner should take the stake. This flexibility is useful, as the best results can often only be achieved when a triggering event actually occurs. This sample form can be made available to a client`s lawyer for review as a sample document upon request. This sample form cannot be delivered to a customer. This document should not be used as it was designed. It was not tailored to the specific circumstances or objectives of an individual client, nor prepared to meet the legal requirements of a particular state. Clients should be asked to seek legal advice when conducting a transaction and preparing all legal documents. All formalities required by applicable local legislation must be complied with.
EDITOR`S NOTE: This form template refers to several ownership options for life insurance policies in the FINANCING section. . . .