Because a cross-purchase agreement may result in shares becoming unexpectedly available (e.g. in the event of a partner's death), a partner will likely take out life insurance policies on the other partners and list himself as the beneficiary. If one of the partners dies, the funds from the life insurance policy can be used to buy the deceased's interest. Some cross-purchase agreements use a dollar amount to calculate the buyout price, while others use a formula.
Investment dictionary. Academic. 2012.
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