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Convertible Promissory Note Purchase Agreement Template for Philippines

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Key Requirements PROMPT example:

Convertible Promissory Note Purchase Agreement

"I need a Convertible Promissory Note Purchase Agreement for my Philippine tech startup to secure a PHP 5 million investment from a single investor, with a 20% discount rate on conversion and 8% annual interest rate, closing expected by March 2025."

Document background
The Convertible Promissory Note Purchase Agreement is a critical financing instrument in the Philippine business landscape, particularly utilized by startups and growth-stage companies seeking bridge financing or initial investment rounds. This document is employed when a company needs to raise capital quickly while deferring complex valuation discussions to a future funding round. The agreement, structured under Philippine law and compliant with local securities regulations, outlines the terms of the investment, including the principal amount, interest rate, maturity date, conversion mechanics, and investor protections. It's particularly valuable when traditional equity financing might be premature or when parties want to align investor returns with future company performance. The document must comply with Philippine securities laws, corporate regulations, and financial sector requirements, especially those set forth by the Securities and Exchange Commission.
Suggested Sections

1. Parties: Identifies the parties to the agreement - typically the Company (Issuer) and the Purchaser(s) of the note

2. Background: Explains the context of the agreement, including the Company's desire to raise funds and the Purchaser's willingness to provide funding

3. Definitions: Defines key terms used throughout the agreement, including financial terms, conversion mechanisms, and corporate events

4. Purchase and Sale of Notes: Details the principal amount, purchase price, and closing mechanics of the note purchase

5. The Notes: Describes the terms of the notes, including interest rate, maturity date, and repayment provisions

6. Conversion Rights: Specifies the conditions and mechanics for converting the notes into equity, including conversion price and timing

7. Company Representations and Warranties: Company's statements about its legal status, authority, and business condition

8. Purchaser Representations and Warranties: Purchaser's statements about their investment capacity and compliance with securities laws

9. Covenants: Ongoing obligations of the Company during the term of the notes

10. Events of Default: Circumstances that constitute default and remedies available to note holders

11. General Provisions: Standard legal provisions including notices, amendments, governing law, and dispute resolution

Optional Sections

1. Information Rights: Grants investors rights to receive financial and operational information - include when dealing with sophisticated investors

2. Board Observer Rights: Gives investors the right to attend board meetings - include for larger investments

3. Pre-emptive Rights: Allows note holders to participate in future financing rounds - include for strategic investors

4. Most Favored Nation Provision: Ensures investors get the benefit of better terms offered in future note issuances - include for early-stage investments

5. Foreign Investment Provisions: Additional provisions required for foreign investors under Philippine law - include when there are foreign investors

6. Tax Provisions: Detailed tax handling and withholding provisions - include when tax implications are complex

7. Anti-dilution Protection: Protects investors from dilution in specific scenarios - include for sophisticated investment rounds

Suggested Schedules

1. Schedule A - Form of Promissory Note: The actual form of the convertible promissory note to be issued

2. Schedule B - Capitalization Table: Current capital structure of the Company and pro forma post-conversion scenarios

3. Schedule C - Company Disclosure Schedule: Detailed disclosures and exceptions to Company representations and warranties

4. Schedule D - Corporate Resolutions: Copies of relevant corporate approvals for the note issuance

5. Schedule E - Investment Amounts: List of investors and their respective investment amounts (if multiple investors)

6. Appendix 1 - Conversion Mechanics: Detailed procedures and calculations for note conversion

7. Appendix 2 - Registration Rights: Details of any registration rights granted to note holders upon conversion

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Technology

Fintech

E-commerce

Healthcare

Renewable Energy

Software Development

Manufacturing

Biotechnology

Agriculture Technology

Real Estate Technology

Educational Technology

Digital Services

Consumer Products

Professional Services

Relevant Teams

Legal

Finance

Corporate Secretariat

Compliance

Executive Leadership

Investment

Business Development

Corporate Development

Treasury

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Corporate Secretary

Investment Manager

Legal Counsel

Corporate Lawyer

Finance Director

Investment Analyst

Venture Capital Associate

Startup Founder

Managing Director

Business Development Manager

Company Director

Compliance Officer

Financial Controller

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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