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Simple English definitions for legal terms

cross-purchase buy-sell agreement

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A quick definition of cross-purchase buy-sell agreement:

A cross-purchase buy-sell agreement is a plan where business partners agree to buy enough life insurance on each other to cover the cost of buying out a partner's share if they die or leave the business. This helps ensure that the business can continue without financial strain and that the departing partner's family receives fair compensation for their share of the business.

A more thorough explanation:

A cross-purchase buy-sell agreement is a type of partnership insurance plan. In this plan, each partner buys and maintains enough insurance on the life or lives of other partners. This is done to purchase a deceased or expelled partner's equity.

Let's say there are three partners in a business. They have a cross-purchase buy-sell agreement in place. Partner A buys insurance policies on the lives of Partner B and Partner C. Partner B buys insurance policies on the lives of Partner A and Partner C. Partner C buys insurance policies on the lives of Partner A and Partner B.

If one of the partners dies or is expelled from the business, the remaining partners use the insurance money to buy the deceased or expelled partner's equity. This ensures that the business can continue without any financial disruptions.

This type of agreement is common in small businesses where there are only a few partners. It provides a way to protect the business and the partners' investments in case of unexpected events.

cross-plaintiff | cross-question

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[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
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