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Equity Commitment Agreement
"I need an Equity Commitment Agreement for a Series A investment where a Singapore-based venture capital firm will invest PHP 50 million in my Philippine technology startup, with the investment to be completed by March 2025 and including standard minority investor protections."
1. Parties: Identification of the investor(s), the company, and any other relevant parties to the agreement
2. Background: Context of the transaction, including the company's current status and purpose of the equity commitment
3. Definitions: Key terms used throughout the agreement
4. Equity Commitment: Details of the investment amount, form of investment, and timing of the commitment
5. Conditions Precedent: Conditions that must be satisfied before the investment obligation becomes binding
6. Closing Mechanics: Process and requirements for completing the investment, including timing and documentation
7. Representations and Warranties: Statements of fact and assurances from both parties
8. Covenants: Ongoing obligations of the parties before and after closing
9. Term and Termination: Duration of the commitment and circumstances allowing early termination
10. Confidentiality: Obligations regarding the protection of confidential information
11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes
12. Notices: Process and requirements for formal communications between parties
13. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability
1. Anti-Dilution Protection: Provisions protecting the investor's ownership percentage, used when there are concerns about future dilutive issuances
2. Tag-Along Rights: Rights allowing the investor to join in any sale of shares by other shareholders, important for minority investor protection
3. Regulatory Compliance: Specific provisions addressing compliance with Philippine regulatory requirements, needed when the investment triggers regulatory oversight
4. Foreign Investment Provisions: Special provisions required when the investor is foreign, addressing Foreign Investment Act compliance
5. Tax Matters: Specific provisions on tax responsibilities and arrangements, important for complex tax structures
6. Force Majeure: Provisions addressing unforeseen circumstances preventing performance, important in uncertain economic conditions
7. Step-In Rights: Rights allowing the investor to take control under specific circumstances, used in strategic investments
1. Schedule 1 - Investment Amount and Payment Terms: Detailed breakdown of the investment amount, payment schedule, and mechanics
2. Schedule 2 - Conditions Precedent Checklist: Comprehensive list of all conditions that must be satisfied before closing
3. Schedule 3 - Corporate Information: Details of the company's corporate structure, capitalization, and ownership
4. Schedule 4 - Form of Shareholders Agreement: Draft or key terms of the shareholders agreement to be executed at closing
5. Schedule 5 - Disclosure Schedule: Exceptions and qualifications to the representations and warranties
6. Appendix A - Required Corporate Approvals: List of required board, shareholder, and regulatory approvals
7. Appendix B - Closing Documents: List and forms of all documents required for closing
8. Appendix C - Compliance Certificates: Forms of compliance certificates to be delivered at closing
Authors
Private Equity
Venture Capital
Financial Services
Technology
Real Estate
Manufacturing
Infrastructure
Energy
Healthcare
Telecommunications
E-commerce
Agriculture
Mining
Retail
Transportation
Legal
Finance
Corporate Development
Investment
Compliance
Executive Management
Board of Directors
Corporate Secretariat
Treasury
Strategy
Mergers & Acquisitions
Chief Executive Officer
Chief Financial Officer
Chief Legal Officer
Corporate Secretary
Investment Director
Private Equity Partner
Venture Capital Manager
Corporate Lawyer
Investment Banker
Financial Controller
Business Development Director
Strategy Director
M&A Manager
Investment Analyst
Compliance Officer
Board Member
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