FINANCIAL PLANNING - Business Planning

|Company RRSP/Pension| |Keyman Insurance|
|Buy/Sell (Shareholder Agreement)| |Executive Living Benefit|

BUY/SELL (SHAREHOLDER AGREEMENT)

What is a “Shareholders Agreement”?

A “Shareholders Agreement is an agreement between owners of a business stating exactly what they want to happen to their business interest during their lifetime and at death.

Events to Consider in a Buy-Sell Agreement

• Death

• Disability

• Retirement

• Personal bankruptcy

• Marital breakdown

• Dissension / dismissal as employee

Advantages of a Properly Funded Buy-Sell at Death of Owner

• guarantees that the estate will sell

• guarantees the surviving shareholder(s) will buy

• establish method of determining price

• provides cash to buy

• avoids the problem of borrowing funds

• keeps ownership in the hands of surviving owners

• business operations continue without costly interruptions

• assures the heirs of a fair price

• assures heirs of prompt payment

• provides heirs with an income producing asset

• provides the necessary liquidity for taxes and settlement costs