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Employee Equity Agreement Template for Philippines

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Key Requirements PROMPT example:

Employee Equity Agreement

"I need an Employee Equity Agreement under Philippine law for our Series A startup, granting stock options to our new CTO with a 4-year vesting schedule starting March 2025, including special provisions for accelerated vesting in case of acquisition."

Document background
The Employee Equity Agreement is a crucial document used by Philippine companies to grant equity-based compensation to their employees as part of their overall compensation package. This agreement is particularly important for startups and growing companies looking to attract and retain talent while conserving cash resources. The document must comply with Philippine corporate law, securities regulations, and tax requirements, including the Corporation Code of the Philippines and Securities Regulation Code. It typically details the type and amount of equity granted, vesting schedule, exercise terms, transfer restrictions, and tax implications. The agreement serves both as a legal instrument and a motivational tool, aligning employee interests with company success while ensuring regulatory compliance in the Philippine jurisdiction.
Suggested Sections

1. Parties: Identification of the Company and the Employee

2. Background: Context of the agreement, including the employee's role and the company's equity incentive program

3. Definitions: Key terms used throughout the agreement, including types of shares, vesting periods, and exercise price

4. Grant of Equity: Details of the equity being granted, including number of shares/options and type

5. Vesting Schedule: Timeline and conditions for the vesting of equity rights

6. Exercise Terms: Procedures and conditions for exercising equity rights

7. Purchase Price and Payment: Details of the exercise price and acceptable payment methods

8. Tax Obligations: Responsibilities for tax payments and withholding requirements

9. Restrictions on Transfer: Limitations on selling or transferring the equity

10. Company's Right of First Refusal: Company's rights to purchase shares before they can be sold to third parties

11. Termination Provisions: Effects of employment termination on equity rights

12. Representations and Warranties: Statements of fact and promises by both parties

13. Confidentiality: Obligations to maintain confidentiality regarding the agreement and company information

14. Governing Law: Specification of Philippine law as governing law and jurisdiction

15. General Provisions: Standard clauses including amendments, notices, and entire agreement

Optional Sections

1. Tag-Along Rights: Optional provision giving the employee right to join in sale of shares by major shareholders

2. Drag-Along Rights: Optional provision requiring employee to join in sale of company if approved by major shareholders

3. Lock-up Period: Optional restriction period on selling shares after initial grant or exercise

4. Put Option: Optional right for employee to sell shares back to company under specific conditions

5. International Tax Provisions: Required if employee is subject to tax laws of multiple jurisdictions

6. Foreign Ownership Compliance: Required if employee is non-Filipino and company operates in restricted industries

7. Share Adjustment Provisions: Optional provisions for adjusting equity in case of corporate restructuring

Suggested Schedules

1. Schedule A - Equity Grant Details: Detailed breakdown of equity grant including number of shares/options and vesting schedule

2. Schedule B - Vesting Milestones: Specific performance or time-based milestones triggering vesting

3. Schedule C - Exercise Notice Form: Template form for exercising equity rights

4. Schedule D - Deed of Adherence: Form binding employee to company's shareholders agreement

5. Appendix 1 - Tax Summary: Summary of relevant tax implications and requirements

6. Appendix 2 - Securities Law Disclosures: Required disclosures under Philippine securities regulations

7. Appendix 3 - Shareholders Agreement Summary: Key provisions of the company's shareholders agreement affecting the employee

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


















































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Relevant Industries

Technology

Financial Services

E-commerce

Telecommunications

Manufacturing

Professional Services

Healthcare

Real Estate

Consumer Goods

Media and Entertainment

Software Development

Biotechnology

Retail

Energy

Education Technology

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Corporate Governance

Compensation & Benefits

Risk Management

Compliance

Corporate Strategy

Operations

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Chief Financial Officer

Chief Operating Officer

Senior Software Engineer

Product Manager

Sales Director

Marketing Director

Department Head

Vice President

Regional Manager

Technical Lead

Senior Account Manager

Research Director

Principal Engineer

Business Development 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, 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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