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The Services For Equity Agreement is a strategic document used when companies, particularly startups and growing businesses in the Philippines, wish to compensate service providers with equity shares instead of or in addition to cash compensation. This arrangement is commonly utilized when companies want to conserve cash while attracting high-quality service providers who can contribute significant value to the business. The document must comply with Philippine corporate law, securities regulations, and tax requirements, including specific provisions of the Corporation Code and Securities Regulation Code. It typically includes detailed service specifications, equity compensation terms, vesting schedules, performance criteria, and necessary corporate approvals. This agreement type is particularly relevant in the Philippine startup ecosystem where resource optimization and talent attraction are crucial for business growth.

1. Parties: Identification of the service provider and the company, including their complete legal names, addresses, and tax identification numbers

2. Background: Context of the agreement, including the company's business, the service provider's expertise, and the parties' intention to enter into a services-for-equity arrangement

3. Definitions: Key terms used throughout the agreement, including technical terms, financial concepts, and specific Philippine legal terminology

4. Services: Detailed description of the services to be provided, including scope, deliverables, timelines, and quality standards

5. Equity Compensation: Structure of equity compensation, including number of shares, class of shares, vesting schedule, and compliance with Philippine securities laws

6. Service Provider's Obligations: Specific duties, responsibilities, performance standards, and compliance requirements for the service provider

7. Company's Obligations: Company's responsibilities, including support, resources, and information to be provided to the service provider

8. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination

9. Representations and Warranties: Standard and specific warranties from both parties, including compliance with Philippine laws

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Ownership and rights to intellectual property created during the service period

12. General Provisions: Standard clauses including governing law, dispute resolution, notices, and amendment procedures