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Royalty Purchase Agreement Template for Philippines

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Key Requirements PROMPT example:

Royalty Purchase Agreement

"I need a Royalty Purchase Agreement governed by Philippine law for the acquisition of mining royalty rights from a local mining company, with quarterly payment terms and specific provisions for environmental compliance and indigenous peoples' rights."

Document background
The Royalty Purchase Agreement is a specialized commercial contract used when a party wishes to sell their rights to receive future royalty payments to another party, typically for an upfront lump sum payment. This document is particularly relevant in the Philippines where intellectual property rights, natural resource royalties, and commercial transactions are governed by specific local laws and regulations. The agreement must comply with the Intellectual Property Code of the Philippines, the Civil Code, and relevant tax regulations. It includes detailed provisions for the transfer of rights, calculation and payment mechanisms, representations about the underlying assets, reporting requirements, and dispute resolution procedures. The document is crucial for businesses seeking to monetize their royalty streams or investors looking to acquire steady income streams from royalty rights.
Suggested Sections

1. Parties: Identifies and provides full legal details of all parties to the agreement

2. Background: Sets out the context of the agreement, including the nature of the royalty rights being sold

3. Definitions: Defines key terms used throughout the agreement

4. Sale and Purchase: Details the specific royalty rights being sold and purchased

5. Purchase Price and Payment Terms: Specifies the purchase price, payment method, and timing

6. Completion: Sets out the completion mechanics and conditions precedent

7. Seller's Representations and Warranties: Warranties regarding ownership, authority to sell, and status of the royalty rights

8. Buyer's Representations and Warranties: Warranties regarding authority to purchase and financial capacity

9. Covenants: Ongoing obligations of both parties

10. Reporting and Audit Rights: Requirements for financial reporting and right to audit underlying royalty calculations

11. Tax Matters: Allocation of tax obligations and responsibilities

12. Confidentiality: Provisions regarding confidential information

13. Term and Termination: Duration of the agreement and termination rights

14. Governing Law and Dispute Resolution: Specifies applicable law and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Security Arrangements: Include when additional security is required for the purchase price payments

2. Anti-corruption Compliance: Include for cross-border transactions or when dealing with government-related entities

3. Foreign Exchange Provisions: Include when payments involve multiple currencies

4. Step-in Rights: Include when buyer requires rights to directly manage underlying assets in certain circumstances

5. Environmental Compliance: Include when royalties relate to natural resource extraction

6. Indigenous Peoples Rights: Include when the underlying assets affect indigenous communities

7. Change of Control: Include when restrictions on change of control are necessary

8. Force Majeure: Include when external events could affect royalty generation

Suggested Schedules

1. Schedule 1 - Details of Royalty Rights: Detailed description of the royalty rights being purchased

2. Schedule 2 - Calculation of Royalties: Formula and methodology for calculating royalty payments

3. Schedule 3 - Underlying Agreements: List and copies of agreements generating the royalty rights

4. Schedule 4 - Form of Transfer Documents: Templates for documents required to effect the transfer

5. Schedule 5 - Due Diligence Reports: Summary of due diligence findings on the royalty rights

6. Schedule 6 - Security Documents: Forms of security documents if applicable

7. Appendix A - Reporting Template: Standard format for periodic royalty reports

8. Appendix B - Completion Checklist: List of documents and actions required for completion

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

Mining and Natural Resources

Entertainment and Media

Technology and Software

Pharmaceuticals and Healthcare

Manufacturing

Renewable Energy

Agriculture and Forestry

Publishing

Music Industry

Oil and Gas

Biotechnology

Fashion and Luxury Goods

Relevant Teams

Legal

Finance

Intellectual Property

Commercial

Business Development

Treasury

Tax

Compliance

Risk Management

Corporate Development

Relevant Roles

Chief Legal Officer

Legal Counsel

Intellectual Property Lawyer

Commercial Director

Chief Financial Officer

Investment Manager

Business Development Director

Royalty Manager

Contract Administrator

Compliance Officer

Tax Director

Treasury Manager

Intellectual Property Director

Mining Rights Manager

Licensing Director

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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