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Security Purchase Agreement for Philippines

Security Purchase Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that documents the terms and conditions for the purchase and sale of securities, including shares, bonds, or other financial instruments. The document complies with the Philippines Securities Regulation Code and related regulations, outlining the purchase price, payment terms, representations and warranties, conditions precedent, closing mechanics, and post-closing obligations. It includes provisions for regulatory compliance, tax considerations, and specific requirements under Philippine corporate and securities laws.

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What is a Security Purchase Agreement?

The Security Purchase Agreement serves as the primary transaction document for securities transfers in the Philippines, structured to comply with the Securities Regulation Code (Republic Act No. 8799) and the Revised Corporation Code. This document is essential when transferring ownership of shares, bonds, or other securities, whether in private transactions or regulated market contexts. It captures all material terms of the transaction, including price, payment mechanisms, representations about the securities' status, and compliance with Philippine foreign ownership restrictions where applicable. The agreement is particularly important for documenting regulatory compliance, protecting both parties' interests, and ensuring proper transfer of title under Philippine law. It may require supporting documentation such as board resolutions, regulatory approvals, and tax clearances.

What sections should be included in a Security Purchase Agreement?

1. Parties: Identification of the seller and purchaser of the securities

2. Background: Context of the transaction, including description of the securities being sold

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including the number of securities, price, and basic mechanics

5. Purchase Price and Payment: Detailed payment terms, method of payment, and any adjustments

6. Conditions Precedent: Conditions that must be satisfied before closing

7. Closing: Timing, location, and mechanics of closing the transaction

8. Seller's Representations and Warranties: Warranties regarding authority, ownership, and status of securities

9. Purchaser's Representations and Warranties: Warranties regarding authority, capacity, and compliance

10. Covenants: Pre-closing and post-closing obligations of the parties

11. Tax Matters: Allocation of tax liabilities and compliance obligations

12. Termination: Circumstances under which the agreement can be terminated

13. Indemnification: Rights and obligations regarding losses and claims

14. Confidentiality: Obligations regarding transaction information

15. Notices: Process for formal communications between parties

16. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction provisions

17. General Provisions: Standard boilerplate provisions including amendments, waivers, etc.

18. Execution: Signature blocks and execution formalities

What sections are optional to include in a Security Purchase Agreement?

1. Earn-out Provisions: Used when part of the purchase price is contingent on future performance

2. Security Interest: Required when the purchase price is paid in installments and security is provided

3. Board Seats and Management: Needed for transactions involving significant ownership stakes with governance rights

4. Competition and Non-solicitation: Include when seller remains in the business or industry

5. Regulatory Compliance: Additional section when specific regulatory approvals are required

6. Foreign Ownership Compliance: Required when purchaser is foreign and industry has ownership restrictions

7. Broker Provisions: Include when brokers or finders are involved in the transaction

What schedules should be included in a Security Purchase Agreement?

1. Schedule of Securities: Detailed description of securities being purchased including certificate numbers

2. Disclosure Schedule: Exceptions and qualifications to representations and warranties

3. Required Consents: List of third-party and governmental consents required

4. Encumbrances: List of any existing liens or encumbrances on the securities

5. Corporate Documents: List of corporate approvals and resolutions

6. Form of Transfer Instruments: Forms of stock certificates, transfer documents, and related instruments

7. Calculation of Purchase Price: Details of price calculation including any adjustments

8. Closing Checklist: List of all documents and actions required at closing

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions










Clauses



































Relevant Industries

Banking and Financial Services

Investment Management

Private Equity

Venture Capital

Real Estate Investment

Technology and Communications

Manufacturing

Energy and Resources

Healthcare and Pharmaceuticals

Consumer Goods and Retail

Professional Services

Agriculture and Food Production

Infrastructure and Construction

Transportation and Logistics

Relevant Teams

Legal

Finance

Compliance

Corporate Secretarial

Investment

Risk Management

Treasury

Tax

Corporate Development

Mergers & Acquisitions

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Secretary

Legal Counsel

Investment Manager

Compliance Officer

Finance Director

Corporate Treasurer

Investment Banker

Securities Lawyer

Due Diligence Officer

Risk Manager

Business Development Manager

Portfolio Manager

M&A Director

Transaction Manager

Industries








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