Share For Share Exchange Agreement Template for Philippines

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Key Requirements PROMPT example:

Share For Share Exchange Agreement

"I need a Share For Share Exchange Agreement for a domestic transaction between two Philippine technology companies, where Company A will exchange 10,000 common shares for 5,000 shares in Company B, with closing scheduled for March 15, 2025."

Document background
The Share For Share Exchange Agreement is a sophisticated legal instrument used in the Philippines when two or more companies wish to effect a share exchange transaction. This document is particularly relevant in scenarios involving corporate restructuring, merger preparations, or strategic business combinations. It must comply with the Philippine Corporation Code, Securities Regulation Code, and other relevant regulations, including foreign ownership restrictions where applicable. The agreement typically includes detailed provisions on share valuation, exchange ratios, representations and warranties, conditions precedent, and closing mechanics. It's essential for transactions requiring regulatory approvals from the Securities and Exchange Commission and, where applicable, the Philippine Competition Commission. The document serves as the primary instrument for documenting the terms and conditions of the share exchange, protecting all parties' interests, and ensuring legal compliance.
Suggested Sections

1. Parties: Identification of the exchanging parties, including full legal names and addresses

2. Background: Context of the transaction, including brief description of each company and purpose of the share exchange

3. Definitions: Defined terms used throughout the agreement

4. Exchange of Shares: Core transaction terms, including number and class of shares to be exchanged

5. Consideration: Details of the exchange ratio and any adjustments

6. Closing: Timing, location, and mechanics of the closing process

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

8. Representations and Warranties: Statements of fact and assurances from each party

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

10. Indemnification: Provisions for compensation in case of breach or losses

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

12. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction details

13. Miscellaneous: Standard provisions including notices, amendments, and severability

Optional Sections

1. Earnout Provisions: Used when part of the consideration is contingent on future performance

2. Employee Matters: Include when there are specific arrangements for key employees or management

3. Tax Matters: Detailed tax provisions when specific tax structuring is required

4. Regulatory Compliance: Additional provisions when specific regulatory approvals are needed

5. Multiple Closing Mechanics: When the exchange will occur in multiple tranches

6. Foreign Ownership Provisions: When any party is foreign-owned and subject to ownership restrictions

7. Competition Law Compliance: When the transaction size requires competition law clearance

8. Intellectual Property Rights: When IP assets are significant to the transaction value

Suggested Schedules

1. Schedule A - Share Details: Detailed description of shares being exchanged, including class, rights, and encumbrances

2. Schedule B - Exchange Ratio Calculation: Detailed methodology for calculating the exchange ratio

3. Schedule C - Company Information: Corporate details of both companies including incorporation, directors, and capital structure

4. Schedule D - Disclosure Schedules: Exceptions and disclosures to representations and warranties

5. Schedule E - Required Consents: List of third-party and regulatory consents required

6. Schedule F - Material Contracts: List of important contracts affecting the transaction

7. Schedule G - Closing Deliverables: List of documents and items to be delivered at closing

8. Appendix 1 - Form of Share Certificates: Template of new share certificates to be issued

9. Appendix 2 - Board Resolutions: Form of corporate approvals required

10. Appendix 3 - Closing Documents: Forms of various closing certificates and documents

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Technology

Manufacturing

Real Estate

Healthcare

Energy

Telecommunications

Retail

Mining

Agriculture

Transportation

Construction

Professional Services

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Tax

Compliance

Risk Management

Corporate Secretariat

Treasury

Board Secretariat

Executive Management

Internal Audit

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Corporate Secretary

General Counsel

Legal Director

M&A Director

Corporate Development Manager

Finance Director

Investment Manager

Compliance Officer

Board Member

Managing Director

Transaction Lawyer

Financial Controller

Tax Director

Company Secretary

Risk Manager

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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