Buy Out Agreement Template for Philippines

The Buy Out Agreement is a crucial document used in Philippine business transactions when one party wishes to acquire ownership of a business from existing owners. This document is essential for both private and public companies operating under Philippine jurisdiction, particularly when implementing complete ownership transfers, management buyouts, or corporate restructuring. The agreement must comply with the Corporation Code of the Philippines, Securities Regulation Code, and relevant tax laws. It typically includes detailed provisions on share valuation, payment terms, warranties, representations, and both pre- and post-completion obligations. The document is particularly important in ensuring proper documentation of ownership transfer, protecting both parties' interests, and maintaining compliance with Philippine regulatory requirements. It serves as the primary reference point for the terms of the transaction and future obligations of all parties involved.

1. Parties: Identification of the selling shareholder(s) and purchasing party(ies), including complete legal names and addresses

2. Background: Context of the transaction, including description of the company, current ownership structure, and purpose of the buyout

3. Definitions: Key terms used throughout the agreement defined for clarity and consistency

4. Sale and Purchase of Shares: Core transaction terms including number of shares, purchase price, and basic mechanics of the transfer

5. Purchase Price and Payment: Detailed breakdown of consideration, payment terms, timing, and payment mechanics

6. Completion: Requirements and mechanics for closing the transaction, including time, place, and deliverables

7. Seller's Warranties: Representations and warranties from the seller regarding ownership, authority, and company status

8. Buyer's Warranties: Representations and warranties from the buyer regarding authority and ability to complete the transaction

9. Pre-Completion Obligations: Conduct of business requirements between signing and completion

10. Confidentiality: Obligations regarding transaction confidentiality and company information

11. Tax Matters: Allocation of tax liabilities and responsibilities

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability