Common use of Purchase of Employee's Stock at Death Clause in Contracts

Purchase of Employee's Stock at Death. Upon the death of the Employee, the Representative may require Systems to purchase the Stock owned by the Employee at the time of death in accordance with the provisions of this Section 14 of this Agreement. The Representative may exercise such option by notice to Systems given within six (6) months after the date of death of the Employee. Upon the giving of such notice, the Representative shall be obligated to sell and Systems shall be obligated to purchase the Stock at Fair Market Value per share. Systems shall pay to the Representative by cash an amount equal to the lesser of the Purchase Price or the Life Insurance Proceeds at the closing of any such purchase. Any remaining balance shall be payable by Systems giving the Representative a promissory note payable in equal monthly installments over the course of 36 months at an interest rate equal to the publicly announced prime rate of interest of M&I Xxxxxxxx & Ilsley Bank, changing on each day such prime rate changes.

Purchase of Employee's Stock at Death. Upon the death of the Employee, the Representative may require Systems to purchase the Stock owned by the Employee at the time of death in accordance with the provisions of this Section 14 of this Agreement. The Representative may exercise such option by notice to Systems given within six (6) months after the date of death of the Employee. Upon the giving of such notice, the Representative shall be obligated to sell and Systems shall be obligated to purchase the Stock at Fair Market Value per share. Systems shall pay to the Representative by cash an amount equal to the lesser of the Purchase Price or the One Million Five Hundred Thousand Dollars ($1,500,000) of Life Insurance Proceeds at the closing of any such purchase. Any remaining balance shall be payable by Systems giving the Representative a promissory note payable in equal monthly installments over the course of 36 months at an interest rate equal to the publicly announced prime rate of interest of M&I Xxxxxxxx & Ilsley Bank, changing on each day such prime rate changes.