This tax is unlikely to apply to C companies that take out life insurance to finance a potential buyout. Since there are no taxes at the company level, these problems also do not exist for S companies, LLCs and limited partnerships. The Shareholders` Agreement of Buy Sell: Cross-Purchase (19 pages) This is a cross-purchase shareholder agreement between two shareholders and their company. The agreement obliges any shareholder to acquire the other`s shares in the company in the event of death or disability. There is also a provision that a shareholder who wishes to sell his shares must grant a right of pre-emption to the other shareholder to follow an offer in good faith (Article IV). This agreement should be distinguished from a business purchase agreement in which the company is itself and not the shareholders in the event of the death or obstruction of the buyers.