A Convertible Loan Agreement is commonly used in Hong Kong's startup and growth company ecosystem as a bridge financing tool. This type of agreement is particularly valuable when companies need immediate funding but determining an accurate company valuation is challenging or premature. The document structures a loan that can convert into equity shares upon specified trigger events (such as a qualified financing round, IPO, or maturity), offering investors potential upside through equity participation while providing initial downside protection through debt characteristics. The agreement must comply with Hong Kong's legal framework, particularly the Companies Ordinance and Securities and Futures Ordinance, and typically includes provisions for interest rates, conversion discounts, valuation caps, and investor protections. It's especially popular among startups and growth-stage companies seeking to raise capital while deferring valuation discussions.
Your data doesn't train Genie's AI
You keep IP ownership聽of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let tiktok成人版's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identification of the Lender and Borrower (and any guarantors if applicable)
2. Background: Context of the agreement, including the purpose of the loan and intention for potential conversion
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Loan Amount and Drawdown: Specification of the loan amount, drawdown conditions and mechanics
5. Interest: Interest rate, calculation method, and payment terms
6. Repayment: Terms and conditions for repayment of the loan
7. Conversion Rights: Conditions and mechanism for converting the loan into shares
8. Conversion Price and Adjustments: Specification of conversion price and circumstances requiring adjustments
9. Representations and Warranties: Standard representations and warranties from the borrower
10. Borrower Covenants: Positive and negative covenants binding the borrower
11. Events of Default: Circumstances constituting default and consequences
12. Termination: Circumstances and process for terminating the agreement
13. Notices: Process and requirements for giving notices under the agreement
14. Assignment and Transfer: Rights and restrictions regarding transfer of the agreement or rights under it
15. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, etc.
1. Security: Terms of any security or guarantees provided - include when loan is secured
2. Multiple Lenders: Additional provisions for managing multiple lenders - include when there is more than one lender
3. Information Rights: Rights of lender to receive financial and other information - include for sophisticated investors
4. Board Representation: Rights of lender to appoint board observer/director - include when negotiated
5. Pre-emptive Rights: Rights of lender to participate in future fundraising - include for strategic investors
6. Tag-Along Rights: Rights of lender to participate in sale of shares - include for significant investments
7. Anti-dilution Protection: Protection against dilution through future share issues - include when specifically required
8. Subordination: Terms of subordination to other debt - include when there are multiple creditors
1. Commercial Terms: Key commercial terms including loan amount, interest rate, maturity date
2. Form of Drawdown Notice: Template for borrower to request drawdown of the loan
3. Form of Conversion Notice: Template for lender to exercise conversion rights
4. Conversion Mechanics: Detailed procedures for implementing the conversion
5. Warranties: Detailed list of warranties given by the borrower
6. Relevant Corporate Documents: Copies of relevant corporate approvals and documents
7. Security Documents: Forms of any security documents (if applicable)
8. Calculation of Conversion Price: Detailed methodology for calculating and adjusting conversion price
Relevant legal definitions
Clauses
Relevant Industries
Technology
Fintech
Biotechnology
E-commerce
Software Development
Healthcare
Clean Energy
Digital Media
Manufacturing
Professional Services
Consumer Products
Real Estate Technology
Education Technology
Financial Services
Telecommunications
Relevant Teams
Legal
Finance
Corporate Development
Treasury
Executive Management
Company Secretarial
Compliance
Risk Management
Investment
Corporate Finance
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Legal Officer
Investment Director
Corporate Lawyer
Investment Manager
Company Secretary
Finance Director
Venture Capital Partner
Private Equity Manager
Startup Founder
Managing Director
Corporate Development Manager
Treasury Manager
General Counsel
Legal Counsel
Investment Banker
Financial Controller
Find the exact document you need
OLA Service Level Agreement
A Hong Kong law-governed service level agreement defining performance standards and metrics for Ola's ride-hailing services.
find out more
Nda (Technology)
Hong Kong law-governed NDA designed for protecting technical and technological confidential information, suitable for both established companies and startups.
find out more
General Risk Assessment Form
A structured workplace safety assessment tool compliant with Hong Kong's occupational safety regulations, used for identifying and managing workplace risks.
find out more
Overloan Agreement
A Hong Kong law-governed agreement establishing terms for extending credit beyond existing facility limits, including repayment terms and security arrangements.
find out more
Critical SLA
A Hong Kong law-governed Critical Service Level Agreement defining essential service commitments and performance standards for mission-critical services.
find out more
Securities Purchase Agreement
A Hong Kong law-governed agreement documenting the terms and conditions for the purchase and sale of securities, ensuring compliance with local securities regulations.
find out more
Personal Data Processing Agreement
Hong Kong law-governed agreement setting out terms for processing personal data, ensuring PDPO compliance and data protection safeguards.
find out more
Third Party Risk Assessment
A risk assessment framework for third-party relationships compliant with Hong Kong regulations and international standards.
find out more
Stock Photo License
A Hong Kong law-governed agreement for licensing and using stock photographs, establishing usage rights, restrictions, and fees.
find out more
Share Sale Deed
A Hong Kong law-governed deed for the sale and transfer of shares between parties, detailing all terms and conditions of the transaction.
find out more
Personal Loan Repayment Agreement
A Hong Kong law-governed agreement setting out terms and conditions for personal loan repayment, including loan amount, interest, and repayment schedule.
find out more
Third Party Payment Contract
A Hong Kong-governed agreement establishing terms for third-party payment processing arrangements, including regulatory compliance and operational procedures.
find out more
Convertible Note Contract
A Hong Kong law-governed agreement documenting terms of a debt investment that can convert into company equity, typically used in startup funding rounds.
find out more
Business Sales Agreement Form
A Hong Kong law-governed agreement establishing terms for business-to-business sales transactions.
find out more
Model Form Contract
A standardized contract template governed by Hong Kong law, designed for commercial relationships and adaptable to various business arrangements.
find out more
Global Collateral Account Control Agreement
A Hong Kong law-governed agreement establishing control rights over global collateral accounts, defining the relationships between account holder, secured party, and account bank.
find out more
Deposit On Purchase Agreement
A Hong Kong law-governed agreement that establishes terms for property purchase deposits, including payment conditions, forfeiture rules, and completion requirements.
find out more
Security Logging Policy
An internal policy document establishing system logging requirements and procedures compliant with Hong Kong regulations and cybersecurity guidelines.
find out more
Platform SLA
A Hong Kong law-governed Service Level Agreement defining performance standards and operational commitments for platform services.
find out more
Pledge Note
A Hong Kong law-governed security document creating a pledge over specified assets to secure underlying obligations.
find out more
Real Estate Sales Contract For Sale By Owner
A Hong Kong law-governed real estate sales contract for direct property transactions between owners and buyers, without agent involvement.
find out more
Collateral Account Control Agreement
A Hong Kong law agreement establishing control over a deposit account as collateral security, between an account holder, secured party, and deposit bank.
find out more
Collateral Account Agreement
A Hong Kong law-governed agreement establishing security over a bank account and its contents, detailing account control and enforcement rights.
find out more
Security Service Termination Letter
A formal notice under Hong Kong law to terminate security service arrangements between a provider and client, including termination terms and transition requirements.
find out more
Convertible Bond Subscription Agreement
A Hong Kong law-governed agreement setting out terms for investing in convertible bonds, including subscription details and conversion rights.
find out more
Key Employee Agreement
Hong Kong-governed employment agreement for senior executives and key employees, including comprehensive terms and protections for both parties.
find out more
Bank Account Pledge Agreement
A Hong Kong law-governed agreement creating security over bank accounts in favor of a lender/security agent to secure financial obligations.
find out more
Collateral Management Agreement
A Hong Kong law-governed agreement establishing terms for managing collateral arrangements between financial institutions, including custody, valuation, and enforcement rights.
find out more
Convertible Notes Agreement
A Hong Kong law-governed agreement establishing terms for a debt investment that can convert into company equity, including conversion mechanisms and investor protections.
find out more
Convertible Agreement Regarding Equity
A Hong Kong law-governed agreement providing investors with rights to future equity in startups, typically used for early-stage funding.
find out more
Intercompany Trademark License Agreement
A Hong Kong law-governed agreement for licensing trademarks between companies within the same corporate group, establishing usage terms and compliance requirements.
find out more
Informal Rental Agreement
A simplified residential rental agreement template compliant with Hong Kong law, designed for straightforward property rental arrangements.
find out more
Debenture Loan Agreement
A Hong Kong law-governed agreement combining loan provisions with security arrangements over company assets, creating fixed and floating charges to secure the borrower's obligations.
find out more
Convertible Debenture Agreement
A Hong Kong law-governed agreement establishing a debt instrument that can be converted into company shares, detailing loan terms and conversion mechanisms.
find out more
Collateral Security Agreement
A Hong Kong law-governed agreement creating security interests over specified collateral to secure defined obligations, including enforcement and perfection mechanisms.
find out more
Commercial Photography Contract
A Hong Kong-governed contract establishing terms and conditions for commercial photography services, including usage rights and deliverables.
find out more
Promissory Note And Deed Of Trust
A Hong Kong law-governed instrument combining a promissory note with trust arrangements to secure debt obligations and manage associated assets.
find out more
Credit And Collection Letter
A formal payment demand document used in Hong Kong to request settlement of outstanding debts, compliant with local financial and privacy regulations.
find out more
Contract Of Sale Of Motor Vehicle
A Hong Kong-governed agreement for the sale and transfer of ownership of a motor vehicle, including essential terms and conditions under local law.
find out more
Collateral Sharing Agreement
A Hong Kong law-governed agreement establishing arrangements between multiple creditors for sharing and managing common security interests and collateral.
find out more
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)