Getting comprehensive control over your papers at any moment is important to alleviate your daily duties and boost your efficiency. Achieve any objective with DocHub tools for papers management and hassle-free PDF editing. Gain access, modify and save and integrate your workflows with other secure cloud storage services.
DocHub offers you lossless editing, the chance to work with any format, and safely eSign papers without searching for a third-party eSignature alternative. Get the most of the document managing solutions in one place. Check out all DocHub functions right now with the free profile.
In a partnership's shareholders agreement, there are two main types: cross-purchase agreements and stock redemption agreements. In a cross-purchase agreement, partners buy each other out, with each owning life insurance on the other; for example, Partner A owns a policy on Partner B and vice versa. In contrast, in a stock redemption agreement, the company owns the policies and buys back shares from the deceased partner’s estate. Cross-purchase agreements are preferred as the insurance proceeds go directly to the partners, preventing creditor claims against the company. Additionally, buying out shares under this agreement allows for a "step up in basis" for tax purposes, benefiting the surviving partner financially.