Cross Purchase Buy Sell Agreement for New Zealand

Cross Purchase Buy Sell Agreement Template for New Zealand

This agreement, governed by New Zealand law, establishes a formal framework for business owners to purchase each other's interests upon specific triggering events such as death, disability, retirement, or voluntary departure. It includes detailed provisions for valuation mechanisms, funding arrangements (often through insurance), payment terms, and transfer procedures, all structured to comply with New Zealand's Companies Act 1993 and relevant commercial legislation. The agreement ensures business continuity while providing fair value to departing owners or their estates, incorporating specific provisions for dispute resolution and compliance with New Zealand tax regulations.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Cross Purchase Buy Sell Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Cross Purchase Buy Sell Agreement?

A Cross Purchase Buy Sell Agreement is a fundamental business succession planning tool used in New Zealand to protect business continuity and owner interests. This document becomes essential when multiple owners want to ensure their business interests are properly managed and transferred in case of death, disability, retirement, or other specified events. It sets out clear procedures for valuation, creates binding purchase obligations between owners, and typically includes insurance funding provisions. The agreement must comply with New Zealand legislation, including the Companies Act 1993, Contract and Commercial Law Act 2017, and relevant tax laws. It provides certainty for business owners while preventing unwanted third-party ownership, making it particularly valuable for closely-held businesses and professional practices in New Zealand.

What sections should be included in a Cross Purchase Buy Sell Agreement?

1. Parties: Identifies all current business owners who are parties to the agreement

2. Background: Sets out the context of the agreement, including business ownership structure and purpose of the agreement

3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the agreement

4. Purchase Obligation: Establishes the mandatory obligation to buy/sell interests upon trigger events

5. Trigger Events: Defines events that activate the buy-sell provisions (death, disability, retirement, etc.)

6. Valuation Mechanism: Details the method for determining the purchase price of business interests

7. Payment Terms: Specifies payment timing, installments, and security requirements

8. Insurance Provisions: Requirements for life/disability insurance to fund purchases, including policy maintenance

9. Transfer Procedure: Step-by-step process for executing the transfer of business interests

10. Representations and Warranties: Standard warranties about ownership, authority to sell, and absence of encumbrances

11. Confidentiality: Obligations to maintain confidentiality of business information

12. Dispute Resolution: Procedures for resolving disagreements about valuations or other matters

13. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

What sections are optional to include in a Cross Purchase Buy Sell Agreement?

1. Right of First Refusal: Optional provision giving owners priority rights to purchase before interests can be sold to outside parties

2. Tag-Along Rights: Allows minority owners to join in sales to third parties on same terms as majority owners

3. Drag-Along Rights: Enables majority owners to force minority owners to join in sale to third parties

4. Family Transfer Exceptions: Special provisions for transfers to family members or trusts

5. Competition Restrictions: Non-compete and non-solicitation provisions for departing owners

6. Intellectual Property Rights: Special provisions for handling IP in the transfer process

7. Management Transition: Procedures for transitioning management responsibilities upon owner departure

What schedules should be included in a Cross Purchase Buy Sell Agreement?

1. Schedule 1: Current Ownership Schedule: Details current ownership percentages and number of shares/interests held

2. Schedule 2: Valuation Formula: Detailed methodology for calculating business value

3. Schedule 3: Insurance Policies: List of current insurance policies, beneficiaries, and coverage amounts

4. Schedule 4: Transfer Notice Form: Template form for initiating transfer process

5. Schedule 5: Purchase Price Certificate: Template for documenting agreed purchase price calculation

6. Appendix A: Company Information: Key company details including registration numbers and registered office

7. Appendix B: Deed of Adherence: Template for new owners to join the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Manufacturing

Retail

Technology

Healthcare

Construction

Agriculture

Hospitality

Financial Services

Real Estate

Consulting

Family Business

Small and Medium Enterprises

Relevant Teams

Legal

Finance

Executive

Corporate Governance

Risk Management

Compliance

Business Development

Tax

Insurance

Relevant Roles

Business Owner

CEO

Managing Director

Company Director

Partner

Chief Financial Officer

General Counsel

Corporate Lawyer

Business Development Manager

Financial Controller

Risk Manager

Company Secretary

Business Succession Planner

Tax Advisor

Insurance Broker

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Videography Contract

A New Zealand-compliant contract governing professional videography services, outlining service terms, deliverables, and legal obligations between videographers and clients.

find out more

Warrant Agreement

A New Zealand-governed agreement establishing terms for the purchase of securities at a predetermined price and time period, compliant with local financial markets legislation.

find out more

Triple Net Lease Agreement

A New Zealand-compliant commercial lease agreement where tenant pays all property operating expenses including taxes, insurance, and maintenance in addition to base rent.

find out more

Surety Agreement

A New Zealand law-governed agreement where a guarantor assumes responsibility for another party's obligations or debts to a creditor.

find out more

Subscription Agreement

New Zealand-governed agreement establishing terms and conditions for subscription-based services, detailing service delivery, payment terms, and mutual obligations.

find out more

Sub Tenancy Agreement

A legal agreement under New Zealand law that enables a tenant to rent out all or part of their rental property to a subtenant, establishing rights and obligations for all parties involved.

find out more

Short Term Contract

New Zealand-compliant contract template for fixed-term employment or temporary service arrangements, incorporating all essential elements required under NZ employment law.

find out more

Scheduling Agreement

A New Zealand-governed agreement that establishes terms and conditions for scheduled services or deliveries between parties, including timing, performance requirements, and operational procedures.

find out more

Production Contract

A New Zealand-law governed agreement setting out terms and conditions for production of goods or content, including specifications, quality standards, and delivery requirements.

find out more

Probationary Contract

A New Zealand-compliant employment agreement establishing a probationary period for new employees, outlining terms, conditions, and evaluation criteria.

find out more

Private Road Maintenance Agreement

A New Zealand-compliant agreement establishing maintenance responsibilities and cost-sharing arrangements for shared private roads.

find out more

Purchase Proposal

A formal New Zealand business document outlining proposed terms and conditions for purchasing assets, businesses, or properties under NZ law.

find out more

One Year Contract

A one-year contract template compliant with New Zealand law, designed for fixed-term business relationships.

find out more

Novation Agreement

A New Zealand law-governed agreement that transfers contractual rights and obligations from one party to another with the consent of all involved parties.

find out more

Material Contract

A New Zealand law-governed agreement setting out terms and conditions for the supply of materials, including specifications, quality standards, and commercial terms.

find out more

Installment Contract

A New Zealand-compliant agreement for the purchase of goods or services through scheduled installment payments.

find out more

Labor Contract

A New Zealand-compliant employment agreement establishing terms and conditions between employer and employee under NZ employment law.

find out more

Lease Deed

A New Zealand lease deed establishing formal property rental terms between lessor and lessee under NZ property law.

find out more

Informal Contract

A simplified contract template compliant with New Zealand law, designed for basic commercial and service agreements.

find out more

Individual Contract

New Zealand-compliant individual employment agreement establishing terms and conditions between employer and employee.

find out more

Franchise Agreement

A New Zealand-governed agreement establishing the rights and obligations between a franchisor and franchisee for operating a franchised business.

find out more

Form For Independent Contractor

A New Zealand-compliant agreement establishing terms and conditions for engaging independent contractors, defining services, payments, and maintaining contractor status.

find out more

Encroachment Agreement

A New Zealand law-governed agreement that establishes rights and obligations between property owners regarding structural or physical encroachment on neighboring property.

find out more

Executive Contract

A New Zealand-compliant employment agreement for executive-level appointments, establishing comprehensive terms and conditions for senior management roles.

find out more

Deed Of Lease

A formal legal document under New Zealand law establishing the terms and conditions between a landlord and tenant for the lease of property, executed as a deed.

find out more

Contingency Contract

A New Zealand-governed agreement that establishes conditions for payment or performance based on specific triggering events or outcomes.

find out more

Contractor Form

A New Zealand-compliant agreement establishing terms and conditions for engaging independent contractors, including service scope, payment terms, and legal obligations.

find out more

Consent Agreement

A New Zealand-compliant agreement establishing explicit consent for data handling and specific rights between parties under NZ privacy laws.

find out more

Common Agreement

A standardized legal agreement template for business relationships under New Zealand law, suitable for various commercial transactions.

find out more

Business To Business Contract

A New Zealand-governed business-to-business contract template for establishing commercial relationships between organizations.

find out more

Barter Agreement

A New Zealand-compliant agreement facilitating the direct exchange of goods and/or services between parties without monetary payment.

find out more

Agreement To Lease

A New Zealand-compliant preliminary agreement that establishes the terms and conditions for a future lease between landlord and tenant.

find out more

Master Contract

A New Zealand-law governed framework agreement establishing core terms for ongoing business relationships and future transactions.

find out more

Land Lease Agreement Form

A New Zealand-compliant legal agreement establishing terms and conditions for land lease arrangements between landlord and tenant.

find out more

Basic Ordering Agreement

A New Zealand-governed framework agreement establishing terms and conditions for future orders between parties, streamlining recurring procurement processes.

find out more

Franchise Agreement Draft

A New Zealand-governed agreement establishing the rights and obligations between a franchisor and franchisee for operating a franchised business.

find out more

Engagement Contract

A New Zealand-governed contract establishing an independent contractor relationship between a principal and contractor, defining services, terms, and obligations.

find out more

Contract Agreement Form

A standard contract agreement template compliant with New Zealand law, establishing terms and conditions for business relationships.

find out more

Cross Purchase Buy Sell Agreement

A New Zealand-governed agreement establishing terms and procedures for business owners to purchase each other's interests upon specified trigger events.

find out more

Written Agreement

A formal Written Agreement under New Zealand law that establishes legal rights and obligations between parties, ensuring clear terms and enforceable commitments.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now