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Depending on the business structure and how the purchase-sale contract works, insurance policies can be held by the owner or be underwritten over the lives of other owners, or they can be held by the company or an agent of a pension fund. In the case of a legal person, the purchase-sale agreement may provide that the company pays the insurance premiums. Often, entrepreneurial families expect their family ties and shared wealth to support them as owner partners in difficult times, and in the best case, they will. Strong family relationships, a common history, common values and goals and a number of other ingredients contribute to an effective and strong family business. But predictable and unexpected life events are likely and can have a negative impact on homeowners. Families should not jeopardize any of their most sacred and important assets by failing to make the right legal agreements to protect it. Here are six things business owners should know about purchase and sale agreements, according to Baker Tilly`s Flaskey: The buy-sell agreement below describes an agreement between shareholders of “ABC, Inc.” on the purchase and sale of shares of the company. Shareholders agree to the conditions under which shares may be transferred and any restrictions on the transfer of shares. It can be seen as a kind of pre-marital agreement between counterparties/shareholders or sometimes called “business will”. .