Royalty Loan Agreement Template for Hong Kong

1. Security: Required if the loan is secured against specific assets or intellectual property

2. Intellectual Property Rights: Needed if the royalties are based on IP-protected assets or creations

3. Minimum Guaranteed Royalty: Include when there's a floor on royalty payments regardless of actual revenue

4. Cap on Royalties: Include when there's a maximum limit on total royalty payments

5. Change of Control: Required if restrictions on change in borrower ownership are needed

6. Assignment and Transfer: Include if either party needs rights to assign or transfer their rights

7. Step-In Rights: Include if lender requires right to take control of revenue-generating assets in default

8. Tax Provisions: Required if specific tax arrangements or gross-up provisions are needed

9. Insurance Requirements: Include if specific insurance for the revenue-generating assets is required

1. Schedule 1 - Loan Terms: Detailed loan amount, disbursement schedule, and any applicable interest terms

2. Schedule 2 - Royalty Calculation Formula: Detailed methodology for calculating royalties, including specific percentages and thresholds

3. Schedule 3 - Revenue Definitions: Detailed breakdown of what constitutes revenue for royalty calculations

4. Schedule 4 - Reporting Template: Template for periodic royalty calculations and reporting

5. Schedule 5 - Assets or IP Description: Detailed description of the assets or IP generating the royalties

6. Schedule 6 - Payment Mechanics: Detailed payment procedures, account details, and timing requirements

7. Schedule 7 - Security Details: If applicable, details of any security or collateral arrangements

8. Appendix A - Financial Projections: If applicable, agreed financial projections for royalty estimates

9. Appendix B - Form of Compliance Certificate: Template for periodic compliance certification by borrower