An agreement by and between business owners, which establishes a mechanism for purchasing ownership shares after an owner leaves due to a triggering event (i.e. death, divorce, disability, retirement, etc.). Unfortunately, in many cases, shareholders are unable to agree on the valuation of shares and the buyback process is at an impasse. This usually happens when shareholder relations have deteriorated and one or more shareholders wish to leave. This often results in lengthy and costly legal actions. “Funding” refers to how promises are funded by the agreement. Purchase and sale agreements provide for the future sale of the business interests of a shareholder who dies, is hindered or retires.