13. All the following provisions are usually included in an insured stock cross-
ID: 2718465 • Letter: 1
Question
13. All the following provisions are usually included in an insured stock cross-purchase buy-sell agreement EXCEPT:
A. A provision giving each surviving stockholder an option to buy a proportionate part of a deceased’s stock. B. A provision establishing the purchase price to be paid for the stock of a deceased stockholder.
C. A provision committing each stockholder to buy and maintain life insurance on the other stockholders
D. A provision permitting each surviving stockholder to buy from the estate of a deceased stockholder the life insurance the deceased’s estate owns on the life of each surviving stockholder.
Explanation / Answer
Answer is option a. A provision giving each surviving stock holder an option to buy a proportionate part of a deceased 's stock.
It does not provide an option, it only states the proportion in which the deceased stock is to be bought by the existing stock holders.