Two or more people may operate a business in a company. However in the event of death, permanent incapacity, bankruptcy and other terminating events, the arrangement may no longer be viable.

The Buy/Sell Option agreement provides each shareholder (and their assigns such as Powers Of Attorney or Executor in the event of death) with a put option for their shares to be sold at market value in a terminating event to the continuing shareholders to run the business. Likewise the continuing shareholders are provided with a call option in the event of a terminating event such as death or permanent incapacity. The funds for the payout of the terminating shareholder is life and total and permanent disability insurance and in some cases trauma insurance.