Equity Participation Loan Agreement Template for England and Wales

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Equity Participation Loan Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Equity Participation Loan Agreement

"I need an Equity Participation Loan Agreement for a Series A technology startup borrowing £2 million from a venture debt fund, with a 5% equity warrant and conversion rights exercisable by March 2025."

Document background
The Equity Participation Loan Agreement is commonly used in growth financing scenarios where traditional debt or pure equity financing may not be optimal. This document, governed by English and Welsh law, provides a structured framework for lenders to extend credit while participating in the borrower's success through equity-linked returns. It is particularly relevant for companies seeking flexible financing solutions that don't immediately dilute existing shareholders but offer lenders potential upside beyond traditional interest returns. The agreement typically includes comprehensive provisions covering loan terms, conversion or participation rights, security arrangements, and reporting requirements.
Suggested Sections

1. Parties: Identification and details of the lender and borrower

2. Background: Context of the loan and equity participation arrangement

3. Definitions: Key terms used throughout the agreement

4. Loan Terms: Principal amount, interest rate, and repayment terms

5. Equity Participation Rights: Terms of equity conversion or profit sharing

6. Conditions Precedent: Conditions that must be met before loan disbursement

7. Representations and Warranties: Statements of fact by the borrower

8. Covenants: Ongoing obligations of the borrower

9. Events of Default: Circumstances that trigger default and remedies

Optional Sections

1. Security: Details of any collateral or security arrangements when the loan is secured

2. Guarantees: Terms of any guarantees provided when third-party guarantees are involved

3. Information Rights: Rights to receive financial and other information when lender requires ongoing monitoring

4. Board Rights: Rights to appoint board members or observers when lender requires board representation

Suggested Schedules

1. Conditions Precedent Schedule: Detailed list of conditions to be satisfied before drawdown

2. Form of Drawdown Notice: Template for requesting loan disbursement

3. Financial Covenants Schedule: Detailed financial ratios and requirements

4. Security Documents: Forms of security documentation if applicable

5. Equity Participation Calculations: Formulas and methods for calculating equity participation

6. Permitted Security Schedule: List of permitted security interests

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company operations, particularly sections relating to share capital, shareholders' rights, and registration of charges

Financial Services and Markets Act 2000 (FSMA): Key legislation regulating financial services and markets in the UK, including requirements for regulated activities

Consumer Credit Act 1974: Legislation governing consumer credit agreements, potentially applicable if the loan involves private individuals

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Specifies which activities require FCA authorization and regulation

Law of Property Act 1925: Fundamental property law legislation relevant when the loan agreement involves security over property

Income Tax Act 2007: Tax legislation relevant for treatment of loan interest and equity participation payments

Corporation Tax Act 2009: Corporate tax implications for both lender and borrower in equity participation arrangements

Taxation of Chargeable Gains Act 1992: Tax treatment of gains potentially arising from equity participation elements

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts and sets limits on what exclusion clauses are permissible

Misrepresentation Act 1967: Governs remedies for misrepresentation in contract formation

Proceeds of Crime Act 2002: Anti-money laundering legislation requiring due diligence and reporting of suspicious transactions

Money Laundering Regulations 2017: Detailed requirements for anti-money laundering procedures and checks

UK GDPR: Post-Brexit data protection regulation governing the processing of personal data

Data Protection Act 2018: UK's implementation of data protection requirements, working alongside UK GDPR

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Sweat Equity Partnership Agreement

find out more

Sweat Equity Contract

find out more

Simple Equity Investment Agreement

find out more

Simple Agreement For Equity

find out more

Equity Transfer Contract

find out more

Equity Linked Agreement

find out more

Equity Line Agreement

find out more

Equity For Services Agreement

find out more

Earned Equity Agreement

find out more

Co Founder Equity Agreement

find out more

Sweat Equity Operating Agreement

An agreement under English and Welsh law governing the exchange of services for company equity ownership.

find out more

Equity Participation Loan Agreement

A loan agreement under English and Welsh law that combines debt financing with equity participation rights for the lender.

find out more

Founders Restricted Stock Purchase Agreement

An English law agreement governing founders' purchase of restricted company stock, including vesting and transfer conditions.

find out more

Continuous Agreement For Future Equity

An English law agreement providing rights to future equity in exchange for immediate investment, commonly used in early-stage funding rounds.

find out more

Independent Contractor Equity Agreement

An English law agreement governing independent contractor services and equity compensation arrangements.

find out more

Convertible Loan Stock Agreement

An English law agreement governing the issuance of debt securities convertible into company shares, setting out terms of conversion, interest, and investor rights.

find out more

Equity Shares Agreement

An English law agreement governing the transfer and ownership of company shares, including rights and obligations of shareholders.

find out more

Employee Stock Grant Agreement

A legal agreement under English and Welsh law documenting the award of company shares to an employee, including terms, conditions, and obligations.

find out more

Preferred Equity Agreement

An English law agreement establishing terms for preferred equity investment, including preferential rights and investor protections.

find out more

Equity Split Agreement

A legally binding agreement under English and Welsh law that documents how ownership shares in a business are divided among multiple parties.

find out more

Private Equity Finder's Fee Agreement

An English law agreement setting out terms for introducing investment opportunities to private equity firms, including fee arrangements and regulatory compliance.

find out more

Convertible Loan Agreement Startup

An English law agreement for a loan that converts to equity in a startup, typically during future funding rounds.

find out more

Advisor Equity Agreement

A legal agreement under English and Welsh law defining terms for advisory services provided in exchange for company equity.

find out more

Startup Equity Contract

A legal agreement under English and Welsh law governing the issuance and rights of equity shares in a startup company.

find out more

Restricted Stock Grant Agreement

An English law agreement governing the grant of restricted company shares to employees or service providers, subject to vesting conditions and transfer restrictions.

find out more

Phantom Stock Award Agreement

An English law agreement granting synthetic equity rights that mirror the economic benefits of company shares without transferring actual ownership.

find out more

Equity Share Contract

A legally binding agreement under English and Welsh law governing the transfer of company shares between parties.

find out more

Equity Incentive Agreement

A legally binding agreement under English and Welsh law establishing terms for granting equity-based compensation to employees or contractors.

find out more

Equity Award Agreement

A legal agreement under English and Welsh law documenting the terms of equity-based compensation granted to individuals.

find out more

Convertible Agreement Regarding Equity

An English law agreement allowing investment to be converted into equity shares at a future date, commonly used in early-stage funding rounds.

find out more

Preferred Stock Agreement

A legally binding agreement under English and Welsh law governing the issuance and terms of preferred stock, including investor rights and privileges.

find out more

Equity Stake Agreement

A legal agreement governed by English and Welsh law that documents the terms and conditions of acquiring shares in a company.

find out more

Equity Release Agreement

A regulated agreement under English and Welsh law enabling homeowners to access property equity while retaining residence rights.

find out more

Equity Repurchase Agreement

A legal agreement under English and Welsh law governing a company's repurchase of its own shares from shareholders.

find out more

Equity Buyout Agreement

A legal agreement under English and Welsh law governing the sale and transfer of company shares between parties.

find out more

Private Equity Investment Agreement

A legal agreement governing private equity investment terms under English and Welsh law, establishing rights, obligations, and exit mechanisms between investors and target companies.

find out more

Equity Loan Agreement

A contract under English and Welsh law governing the provision of a loan secured against property with shared appreciation provisions.

find out more

Restricted Stock Unit Award Agreement

An English law agreement governing the award of Restricted Stock Units to employees, detailing vesting conditions and settlement terms.

find out more

Equity Pledge Agreement

A legally binding agreement under English and Welsh law creating security over shares or equity interests in a company.

find out more

Standby Equity Purchase Agreement

A UK-law governed agreement establishing a committed equity line facility between an investor and a company for flexible capital raising.

find out more

Restricted Stock Unit Agreement

An English law agreement governing the grant of restricted stock units to employees, establishing vesting conditions and settlement terms.

find out more

Restricted Stock Award Agreement

An English law agreement governing the award of restricted company shares to employees or service providers, subject to vesting and transfer restrictions.

find out more

Equity Commitment Agreement

A binding agreement under English and Welsh law that documents an investor's commitment to provide equity funding to a company, including terms, conditions, and timing of the investment.

find out more

Convertible Equity Agreement

An English law agreement allowing investment to convert into equity shares at a future date, typically used for early-stage company funding.

find out more

Phantom Equity Agreement

An English law agreement granting synthetic equity rights that mirror the economic benefits of share ownership without issuing actual shares.

find out more

Employee Equity Agreement

A legally binding agreement under English and Welsh law governing the grant of company equity to employees.

find out more

Standby Equity Distribution Agreement

An English law agreement establishing a flexible equity financing facility allowing companies to draw down capital by issuing new shares to a committed investor.

find out more

Equity Participation Agreement

A legal agreement under English and Welsh law governing the acquisition of company shares by an investor, including terms of investment and shareholder rights.

find out more

Equity Grant Agreement

An English law agreement documenting the grant of company equity (shares or options) to a recipient, including terms and conditions of the grant.

find out more

Vested Equity Agreement

An English law agreement governing the gradual acquisition of company equity through a vesting schedule.

find out more

Private Equity Subscription Agreement

An English law agreement governing the subscription for shares by private equity investors, including key terms and investor protections.

find out more

Equity Transfer Agreement

A legal agreement under English and Welsh law governing the transfer of equity ownership between parties.

find out more

Equity Distribution Agreement

A contract governed by English and Welsh law that establishes terms for the distribution of equity securities between an issuer and distributor.

find out more

Equity Contribution Agreement

A legally binding agreement under English and Welsh law that sets out terms for equity investment in a company.

find out more

Equity Buyback Agreement

A legal agreement under English and Welsh law governing a company's repurchase of its own shares from existing shareholders.

find out more

Limited Partnership Agreement Private Equity

A legal agreement establishing a private equity fund as a limited partnership under English and Welsh law, defining partner relationships and fund operations.

find out more

Equity Ownership Agreement

A legal agreement under English and Welsh law that establishes the terms of share ownership and shareholder relationships in a company.

find out more

Equity Investment Agreement

A legal agreement under English and Welsh law governing the terms of equity investment in a company, including share allocation and investor rights.

find out more

Employee Stock Options Agreement

A legal agreement under English and Welsh law granting employees the right to purchase company shares under specified terms and conditions.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s 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

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.