Below is a checklist of the thoughts that should be agreed upon by a business owners and then transposed into a formal buy-sell agreement: buy-sell agreements assure owners that they can pay if they wish to retire. The agreement will define how their shares will be valued and the money from which the shares will be paid. Purchase and sale agreements serve as guidelines for friendly and less friendly business separations. In the event of a controversial business separation, they can save several times their costs in legal fees, management time and lost focus. If it`s worth saving a business, it requires a buy-sell agreement. When an owner dies before retirement, the partnership receives the proceeds of the insurance policy and distributes it to the surviving owners who purchase the outgoing owner`s stock. Upon retirement, life insurance policies can be distributed to any insured who can use the cash values of the policy to supplement old-age income. . . .