First to Rex, my condolences.

I just wanted to add a suggestion over the reasonable evaluation and the option to buy. In our startup, the company has taken life insurance on both founders and half of the insurance amount almost match a valuation we as founder agree on at the start of each year. This is mostly for the first year(s) where the company is not getting that much revenues.

So what happens if one of us dies is that their family will get half of the life insurance for their equity. The other half is to help the company cope with the fact one of us is gone. This may sound expensive, but in fact for guys in their thirties and in good shape it is quite cheap.