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A buy/sell agreement runs alongside a partnership/shareholders agreement.

It is put in place to protect the partners and shareholders of a business and states that should a partner or shareholder leave the business for any reason the remaining partners/shareholders must buy the exiting partner’s shares for the rightful market value.

A Key Person can be an owner, a shareholder, or an employee.

This means that a Key Person can be any one person, that should they be unable to work, would result in a decline in profit and/or value of the business.