Share Security Agreement Template for Philippines

The Share Security Agreement is a crucial document in Philippine secured financing transactions, used when a party wishes to pledge shares as collateral for financial obligations. This agreement is particularly important in corporate lending, acquisitions, and investment scenarios where shares serve as security. The document must comply with Philippine law requirements, including the Revised Corporation Code, Securities Regulation Code, and Personal Property Security Act. It details the creation and perfection of the security interest, voting rights arrangements, dividend treatments, and enforcement mechanisms. The agreement becomes especially relevant in corporate restructuring, project financing, or when companies seek to secure additional funding using their shareholdings as collateral. The document must address specific Philippine law requirements regarding share transfers, foreign ownership restrictions (if applicable), and corporate governance considerations.

1. Parties: Identification of the Pledgor (shareholder/security provider) and Pledgee (security taker/lender), including their complete legal names and addresses

2. Background: Context of the security arrangement, including reference to any underlying loan or facility agreement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Creation and Grant of Security Interest: Express creation of the security interest over the shares, including the pledge and its scope

5. Secured Obligations: Definition of the obligations being secured by the share pledge

6. Perfection Requirements: Steps required to perfect the security interest under Philippine law, including registration requirements

7. Representations and Warranties: Pledgor's representations regarding ownership, authority, and status of shares

8. Covenants: Ongoing obligations of the Pledgor regarding the secured shares

9. Voting Rights and Dividends: Provisions governing exercise of voting rights and receipt of dividends pre and post-default

10. Events of Default: Circumstances constituting default under the agreement

11. Enforcement: Rights and remedies of the Pledgee upon default, including power of sale

12. Power of Attorney: Appointment of the Pledgee as attorney-in-fact for enforcement purposes

13. Miscellaneous: Standard provisions including notices, amendments, governing law, and jurisdiction