13. All the following provisions are usually included in an insured stock cross-

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.

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