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Stock Buy Back Agreement
"I need a Stock Buy Back Agreement under Philippine law for our private corporation to repurchase 10,000 common shares from a retiring founder-shareholder, with completion planned for March 15, 2025, full payment at closing, and standard warranties."
1. Parties: Identification of the Corporation (Buyer) and the Shareholder(s) (Seller(s))
2. Background: Context of the agreement, including current shareholding structure and corporate authority for buyback
3. Definitions: Key terms used throughout the agreement including 'Shares', 'Purchase Price', 'Completion Date'
4. Sale and Purchase: Core transaction terms including number of shares, price per share, and total consideration
5. Conditions Precedent: Requirements to be met before completion, including corporate and regulatory approvals
6. Completion: Mechanics and timing of the share transfer, payment, and documentation
7. Seller's Warranties: Representations regarding share ownership, authority to sell, and absence of encumbrances
8. Corporate Warranties: Company's representations regarding authority to purchase and compliance with laws
9. Tax Provisions: Allocation of tax liabilities and responsibilities for tax payments
10. Confidentiality: Obligations to maintain confidentiality of the transaction and related information
11. Notices: Process for formal communications between parties
12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes
13. Execution: Signature blocks and execution formalities
1. Installment Payment Terms: Include when purchase price is to be paid in installments, detailing payment schedule and security
2. Multiple Sellers Provisions: Required when multiple shareholders are selling shares, addressing several sellers' obligations
3. Tag-Along Rights: Include for partial buybacks where remaining shareholders have rights to participate
4. Security Arrangements: Needed when collateral is provided for deferred payments
5. Post-Completion Covenants: Include when sellers need to comply with specific obligations after completion
6. Non-Competition: Include when seller is a significant shareholder or involved in management
7. Survival of Warranties: Optional extended warranty provisions for specific representations
1. Share Details: Details of shares being purchased including share certificate numbers and dates of issue
2. Completion Requirements: Checklist of documents and actions required for completion
3. Form of Share Transfer: Template share transfer forms and supporting documents
4. Corporate Approvals: Copies of board resolutions and other corporate authorizations
5. Payment Schedule: If applicable, detailed schedule of installment payments
6. Existing Encumbrances: List of any existing encumbrances on the shares to be discharged
7. Regulatory Filings: Forms and notices required for SEC and other regulatory compliance
Authors
Financial Services
Banking
Investment Management
Real Estate
Manufacturing
Technology
Retail
Energy
Telecommunications
Professional Services
Healthcare
Mining and Resources
Construction
Consumer Goods
Legal
Finance
Corporate Secretariat
Treasury
Compliance
Tax
Corporate Governance
Investor Relations
Risk Management
Corporate Planning
Chief Executive Officer
Chief Financial Officer
Corporate Secretary
Legal Counsel
Compliance Officer
Finance Director
Treasury Manager
Corporate Governance Officer
Board Director
Company Secretary
Shareholder Relations Manager
Investment Officer
Risk Management Officer
Corporate Planning Director
Tax Manager
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