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Warrant Purchase Agreement for Philippines

Warrant Purchase Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions for the purchase and sale of warrants, which give the holder the right to purchase company shares at a predetermined price within a specified period. The document complies with the Securities Regulation Code and related SEC regulations, detailing the warrant terms, exercise procedures, representations and warranties, and various rights and obligations of both the issuing company and warrant purchasers. It includes specific provisions for Philippine corporate law compliance and local securities regulations, making it suitable for both domestic and international warrant transactions in the Philippine market.

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What is a Warrant Purchase Agreement?

A Warrant Purchase Agreement is a crucial document used when a company wishes to issue warrants as part of its financing strategy or compensation arrangements. Under Philippine law, this agreement must comply with the Securities Regulation Code (Republic Act No. 8799) and related SEC regulations. The document specifies all essential terms of the warrant issuance, including the number of warrants, purchase price, exercise price, expiration date, and exercise procedures. It's commonly used in various scenarios such as venture capital investments, employee compensation plans, or as part of larger financing transactions. The agreement must address specific Philippine legal requirements, including SEC registration and disclosure obligations, and typically includes provisions for protecting both the issuing company and warrant purchasers.

What sections should be included in a Warrant Purchase Agreement?

1. Parties: Identification of the issuing company and the warrant purchaser(s)

2. Background: Context of the warrant issuance, including corporate authorizations and purpose of the transaction

3. Definitions: Key terms used throughout the agreement, including technical and financial definitions

4. Purchase and Sale of Warrants: Core transaction terms including number of warrants, purchase price, and closing mechanics

5. Warrant Terms: Fundamental terms of the warrants including exercise price, expiration date, and number of shares upon exercise

6. Exercise Procedures: Detailed process for exercising the warrants, including notice requirements and payment procedures

7. Representations and Warranties of the Company: Company's assertions regarding its authority, compliance with laws, and financial condition

8. Representations and Warranties of the Purchaser: Purchaser's assertions regarding authority, investment intent, and sophistication

9. Covenants: Ongoing obligations of both parties, including information rights and maintenance of warrant shares

10. Adjustments: Provisions for adjusting warrant terms in case of corporate events like stock splits or reorganizations

11. Transfer Restrictions: Limitations on the transfer of warrants and compliance with securities laws

12. Events of Default: Circumstances constituting default and resulting remedies

13. Miscellaneous: Standard legal provisions including notices, amendments, governing law, and dispute resolution

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

1. Registration Rights: Include when warrantholder requires rights to register shares for public trading

2. Tag-Along Rights: Include when warrantholders should have the right to participate in future sales of company shares

3. Board Observer Rights: Include when warrant purchase is significant enough to justify board observation rights

4. Anti-dilution Protection: Include when warrantholder requires protection against future dilutive issuances

5. Most Favored Nation: Include when warrantholder should receive benefit of more favorable terms granted to future warrant purchasers

6. Information Rights: Include when warrantholder requires specific financial or operational information beyond standard disclosures

What schedules should be included in a Warrant Purchase Agreement?

1. Form of Warrant Certificate: Template of the actual warrant certificate to be issued

2. Exercise Notice: Form to be completed by warrantholder when exercising warrants

3. Capitalization Table: Current and pro forma capitalization of the company

4. Corporate Resolutions: Copies of board and shareholder resolutions authorizing warrant issuance

5. Disclosure Schedule: Exceptions to company representations and warranties

6. Registration Rights Terms: Detailed terms of registration rights if applicable

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

Security Agreement

Cost

Free to use
Relevant legal definitions











































Clauses






























Relevant Industries

Financial Services

Technology

Manufacturing

Real Estate

Healthcare

Energy

Mining

Telecommunications

Retail

E-commerce

Start-ups

Venture Capital

Relevant Teams

Legal

Finance

Compliance

Corporate Secretariat

Treasury

Corporate Development

Investment Relations

Risk Management

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Secretary

Investment Manager

Compliance Officer

Finance Director

Legal Director

Corporate Development Manager

Investment Banker

Private Equity Manager

Venture Capital Manager

Treasury Manager

Board Director

Company Secretary

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

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