1. An arrangement between owners of a business by which the surviving owners agree to purchase the interest of a withdrawing or deceased owner. Cf. CONTINUATION AGREEMENT.
2. Corporations. A share-transfer restriction that commits the shareholder to sell, and the corporation or other shareholders to buy, the shareholder’s shares at a fixed price when a specified event occurs. [Cases: Corporations 82, 116. C.J.S. Corporations §§ 180–181, 193–195, 233–240, 242.] — Also termed buy-and-sell agreement. Cf. OPTION AGREEMENT.
