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The Convertible Loan Agreement is commonly used in Qatar for growth-stage financing, particularly in the technology and startup sectors, where traditional equity valuation may be challenging. This document structure complies with Qatar's legal framework, including the Commercial Companies Law No. 11 of 2015 and relevant banking regulations. It provides a flexible financing solution that allows investors to extend loans that can later convert into equity based on predetermined triggers or at the lender's discretion. The agreement typically includes detailed provisions for conversion mechanics, valuation adjustments, and post-conversion rights, while ensuring compliance with local corporate and banking regulations. This structure is particularly useful for companies seeking bridge financing or looking to defer equity valuation discussions while securing immediate funding.

1. Parties: Identification of the Lender and Borrower, including full legal names and registration details

2. Background: Context of the agreement, relationship between parties, and purpose of the convertible loan

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Loan Amount and Purpose: Specifies the principal amount, purpose of the loan, and any conditions precedent to drawdown

5. Interest: Terms of profit rate/interest, calculation method, and payment schedule in compliance with Qatar law

6. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

7. Conversion Rights: Conditions triggering conversion, conversion price/mechanism, and resulting shareholding

8. Conversion Mechanics: Detailed process for executing the conversion, including timing and documentation requirements

9. Representations and Warranties: Standard and transaction-specific representations by both parties

10. Covenants: Ongoing obligations of the Borrower, including information rights and operational restrictions

11. Events of Default: Circumstances constituting default and consequences thereof

12. Termination: Grounds for termination and consequences

13. Confidentiality: Obligations regarding confidential information

14. Notices: Communication procedures between parties

15. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement