The New ZealandThoroughbred Racehorse Owners Federationisnotprovidinglegaladvice byvirtue ofitspublishingofthis document.Anypartyintendingtorelyuponthecontentsofthisdocumenttocreate legal responsibilitiesandrightsshouldseeklegaladvicebeforedoing so.
SAMPLEOWNERSHIPAGREEMENT
1.Definitions
“Horse”meansthehorseregisteredwithNew Zealand Thoroughbred RacingIncorporated as[Insert Description of Horse – Name, Year of Birth and/or Breeding]
“co-owners”meansthepartiestothisagreement,whoowntheHorseastenants in common.
2.General
2.1ThepurchasepriceoftheHorseis$
2.2Theundersignedpartiesagreetoeachcontributemoniesinconsiderationfora percentageshareintheHorseinaccordancewiththeattachedschedule1.
2.3Theundersignedpartiesagreethatthey[purchase/lease]theHorseasco-ownerswithaviewtosharingintheenjoymentoftheHorseasaracehorse.
3.Shareofprofits
3.1Theco-ownersagreethattheywillshareallcostsrelatedandincidentaltothe racing,training,agistment,[insurance], treatment,maintenance,welfareandkeepoftheHorse inproportiontotheirshareholding. [Decide whether horse will be insured]
3.2Theco-ownersagreethattheyareliableasco-ownersonlyfortheirownshareof
thecostsreferredtoinclause3.1,unlessthereisanagreementtothecontraryand providedthat aco-ownermaybeliabletoanotherco-ownerforcostsproperly incurredontheirbehalf.
3.3Thepartiesagreetheywillshareallprizemoneyorothermoneysearnedbythe
Horseinproportiontotheirshareholding.
3.4ThepartiesagreethatanytrophywonbytheHorseshallbe[retained by the Managing Owner] [auctionedamongst theco-owners] [ allocated by drawing lots, after which the successful co-owner will not be eligible for future draws until all co-owners have received a trophy]. [Select one of these suggestions or otherwise specify]
4.ManagingOwner
4.1Thepartiesappoint [Insert name] tobethemanagingowneroftheHorse.
4.2Themanagingowner’sdutiesshallinclude:
a)actingfortheco-ownersinaccordancewiththeRulesofRacing;
b)doingallthingsonbehalfoftheco-ownersasauthorizedbytheco-owners
todo;
c)receivingnoticeofanymatteronbehalfoftheco-ownersandinforming themofsaidnotice;
d)keepingtheaccountsoftheco-owners;
e)ensuringthatallco-ownersareawareofthedateonwhichanyamount
payablebythemunderclause3.1(eithertothirdpartiesortootherco- owners)fallsdue;
f)ensuringthatallco-ownersareawareofmattersarisingunderclauses5,6
7thatmayaffecttheirrightsorinterests
g)keepingallco-ownersregularlyinformedoftheprogressandwelfareofthe
Horse.
4.3Thepartiesmayatanytimeelectanyotherpartytobethemanagingowner by
vote,eachpartyhavinganumberofvotesinproportiontotheirshareholding
(‘majorityvote’).
4.4Forthepurposesofthisagreement,themanagingownermaybereplacedbythe
otherco-ownersifheor she failstomeetanyobligationunderthisagreement.
5.DisputesrelatingtomanagementoftheHorse
5.1Anydisputerelatingtothemanagement,handling,orracingcareeroftheHorse shallbesettledbyavoteoftheco-owners,eachpartyhavinganumberofvotesin
proportiontotheirshareholding(‘majorityvote’).
5.2Fortheavoidanceofdoubt,andwithoutlimitingtheoperationofclause5.1,
wherethereisadisputethefollowingmattersmaybesettledbymajorityvote:
a)theHorse’sracingprogram;
b)thetraineroftheHorse;
c)whethertheHorseistobegelded;
d)whethertheHorseistoundergoelectivesurgery;
e)whethertheHorseistoberetired;
f)followingretirement,whethertheHorseistobeusedforbreedingpurposes,
oranyotherpurpose;
5.3Whereanyvotereferredtoinclause5.1issplit,themanagingowneratthetime ofthevoteshallhavethedecidingvote.
6.Saleofshareholding
6.1Whereanyco-ownerwishestoselltheirshareholding,theyshallgivenoticeof theirintentiontogether with the proposed terms of sale (including price) totheotherco-ownerswho,foraperiodof21days,shallhavefirst optiontopurchasetheshareholdingon these terms.
6.2Subject to 6.3, eachco-ownershallbeentitledtopurchasepart or alloftheofferedshareholding. If more than one co-owner wishes to purchase the offered shareholding, each co-owner will be entitled to purchase a pro-rate apportionment based on their existing ownership percentage.
6.3If the co-owners do not collectively elect to purchase all of the offered shareholding, then the party wishing to sell its shareholding may elect not to sell a portion of the shareholding to the co-owners and thereafter shall be free for a period of three months to sell the offered shareholding to any third party, on terms no more favourable than those offered to the co-owners.
6.4If the terms offered to any third party are more favourable than those offered to the co-owners, the co-owners will again be entitled to the benefit of this right of first option in respect of such more favourable terms.
6.5Theco-ownersellingtheshareintheHorseremainsliableforhis/hershareinthe
costsreferredtoinclause3.1untilsuchtimeasanysaleisexecuted.
7.Defaultinpayments
7.1Any debtsbetweenco-ownersarisingfromcostsincurredunderclause3.1shall bemadebytheduedateasadvisedbythemanagingowner.
7.2Ifaco-ownerhasnotpaidanyamountso payable45daysaftertheduedate,then themanagingownermustserveuponthemawrittennoticedemandingpayment bemade.
7.3If14daysafternoticeisgiven,theamountdueremainsunpaid,thenthe managingownermayoffertheshareofthedefaultingco-ownerforsaletothe otherco-owners.
7.4The offer priceshall betheaveragevalueoftwovaluationsprocuredbythe
managingownerfromindependentbloodstockagents.
7.5Thesalepriceoftheshareshallbeappliedagainstalloutstandingdebtstothe
dateoftheforfeiture,includinganyinterestandrecoverycostsincurred,withthe balancetobepaid bytheacquiringco-ownerstothedefaultingco-owner,oras thedefaultingco-ownermaydirect.
7.6Ifnoneoftheco-ownersaccepttheoffer,themanagingownermayoffertheshare
forsaletothepublicandtheproceedsofsaleshallbeappliedinaccordancewith clause7.5.
7.7Theco-ownersirrevocablyappointthemanagingownerastheirattorneyforthe
purposesof theexerciseof thepowerofsaleunderthisclause7 andagreetodo all suchactsas maybe requiredto ensurethatthemanagingownermayexercise thepowerofsaleunderthisclause.
8.Termination
8.1Thisagreementterminateswhen:
a)alloftheco-ownersbyvotedecidetoterminatetheagreement; or
b)theHorsedies; or
c)thetotalinterestofallco-ownersaresold.
8.2Theco-ownersacknowledgetheirresponsibilityforthewelfareoftheHorseatall
timeswhiletheyremainco-owners.
9.Jurisdiction
ThisagreementwillbegovernedbythelawsofNew Zealand.
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SCHEDULE1
Name / Address / Percentage1.
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