Shareholder protection double option agreements

This is very useful when a shareholder is identified as a key person in a particular company. This involves shareholders having a written agreement that in the event of a death the remaining shareholders must offer to buy the shares. The family of the dead shareholder must in turn offer to sell the shares to the remaining shareholders. The money, however, comes from a insurance that is taken out by the shareholders rather than directly from the shareholders themselves. This has the benefit of providing money for the relatives of the dead shareholder and also allowing the existing shareholders to increase their shares in the company. Without this agreement and insurance the shareholders wouldn't be able to buy the shares and the family would end up with some worthless paper that they couldn't do anything with. As you can see this contingency plan benefits everybody.