ºÚÁÏÊÓƵ

All Countries
Capital Markets
Convertible Equity Agreement

Convertible Equity Agreement Template for United Arab Emirates

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

4.6 / 5
4.8 / 5

Let's create your Convertible Equity 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:

Convertible Equity Agreement

"I need a Convertible Equity Agreement for a UAE mainland company receiving a $500,000 investment from a foreign investor, with a valuation cap of $5 million and conversion triggered by a Series A round expected in March 2025."

Celebrated by
Collaborations with
Investors
Document background
The Convertible Equity Agreement is widely used in the UAE startup ecosystem as a bridge financing tool, particularly in situations where determining an immediate company valuation is complex or premature. This document provides a framework for investors to make an initial investment that can later convert into equity shares upon specified trigger events such as a qualified financing round, exit event, or maturity date. The agreement must comply with UAE Federal Law No. 32 of 2021 (Companies Law), relevant free zone regulations if applicable, and other pertinent legislation including foreign ownership restrictions. It typically includes detailed provisions on conversion mechanics, valuation caps, discount rates, investor rights, and corporate governance matters, all structured within the UAE legal framework. The document is particularly relevant for early-stage companies seeking growth capital while deferring complex valuation discussions.
Suggested Sections

1. Parties: Identification of the Company, Investor(s), and any other relevant parties to the agreement

2. Background: Context of the investment, company status, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including financial and technical terms

4. Investment Amount: Details of the investment sum and payment terms

5. Conversion Rights: Terms and conditions for converting the investment into equity, including trigger events

6. Conversion Price: Formula or mechanism for determining the price at which the investment converts to equity

7. Company Representations and Warranties: Company's confirmations regarding its legal status, authority, and business condition

8. Investor Representations and Warranties: Investor's confirmations regarding authority, investment intent, and compliance with laws

9. Pre-emptive Rights: Rights of the investor regarding future funding rounds

10. Information Rights: Investor's rights to receive company information and financial reports

11. Transfer Restrictions: Limitations on transfer of rights under the agreement

12. Confidentiality: Obligations regarding confidential information

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. Notices: Process for formal communications between parties

15. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability

Optional Sections

1. Shariah Compliance: Required if the agreement needs to be Shariah-compliant, including relevant structuring and compliance provisions

2. Free Zone Provisions: Required if the company is located in a UAE free zone, addressing specific free zone requirements

3. Tag-Along Rights: Optional protection allowing investor to join in sale of company shares

4. Anti-dilution Protection: Optional protection against dilution in future funding rounds

5. Board Observer Rights: Optional rights for investor to attend board meetings

6. Most Favored Nation Provision: Optional clause ensuring investor gets best terms offered to other investors

7. Foreign Ownership Compliance: Required if the investor is foreign, addressing UAE foreign ownership restrictions

Suggested Schedules

1. Schedule 1: Company Information: Details of company registration, shareholders, and capital structure

2. Schedule 2: Investment Details: Detailed terms of the investment including amount, valuation cap, and discount

3. Schedule 3: Conversion Mechanics: Detailed procedures and calculations for conversion

4. Schedule 4: Pre-conversion Reorganization: Steps required before conversion if necessary

5. Schedule 5: Deed of Adherence: Form for new investors to join the agreement

6. Schedule 6: Capitalization Table: Current and post-conversion shareholding structure

7. Appendix A: Share Rights: Rights attached to shares post-conversion

8. Appendix B: Required Corporate Approvals: List of necessary corporate and regulatory approvals

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions

















































Clauses





























Relevant Industries

Technology

E-commerce

Financial Services

Healthcare

Education Technology

Renewable Energy

Real Estate Technology

Logistics

Digital Media

Artificial Intelligence

Blockchain

Biotechnology

Software Development

Consumer Services

Manufacturing

Relevant Teams

Legal

Finance

Corporate Development

Executive Leadership

Investment

Compliance

Corporate Secretariat

Business Development

Risk Management

Board of Directors

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Investment Director

Venture Capital Partner

Corporate Lawyer

Investment Manager

Company Secretary

Financial Controller

Business Development Director

Startup Founder

Managing Partner

General Counsel

Corporate Development Manager

Board Member

Industries








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 Term Sheet

A UAE-compliant preliminary agreement outlining terms for exchanging services for company equity, subject to UAE Commercial Companies Law and related regulations.

find out more

Subscription Agreement Private Equity

A UAE-compliant agreement governing an investor's subscription to a private equity fund, incorporating local regulatory requirements and investment terms.

find out more

Equity Compensation Agreement

UAE-governed agreement establishing terms for employee equity compensation, including vesting schedules and regulatory compliance requirements.

find out more

Sweat Equity Partnership Agreement

UAE-governed agreement establishing terms for exchange of services or expertise for company ownership rights, compliant with UAE Commercial Companies Law.

find out more

Startup Advisor Equity Agreement

UAE-governed agreement for establishing advisor engagement terms and equity compensation in startups, compliant with local regulations.

find out more

Simple Equity Investment Agreement

UAE-governed agreement documenting equity investment terms, share allocation, and investor rights in compliance with local law.

find out more

Equity For Services Agreement

UAE-governed agreement for the provision of services in exchange for company equity, structured in compliance with UAE Commercial Companies Law.

find out more

Co Founder Equity Agreement

A UAE law-governed agreement establishing equity arrangements and responsibilities between company co-founders, ensuring compliance with UAE corporate regulations.

find out more

Founders Restricted Stock Purchase Agreement

UAE-governed agreement for founders' purchase of restricted company shares, including vesting and transfer terms under UAE commercial law.

find out more

Simple Agreement For Future Equity Term Sheet

UAE-governed term sheet outlining key terms for a Simple Agreement for Future Equity investment in startups, specifying investment terms and conversion rights.

find out more

Convertible Equity Term Sheet

UAE-governed term sheet outlining convertible equity investment terms, including valuation, conversion rights, and UAE-specific regulatory requirements.

find out more

Convertible Loan Stock Agreement

UAE-governed agreement establishing terms for convertible loan stock issuance, including loan terms, conversion rights, and compliance with UAE federal laws.

find out more

Founder Equity Agreement

UAE-governed agreement establishing founder equity rights, obligations, and ownership structure, compliant with UAE Commercial Companies Law.

find out more

Simple Agreement For Future Equity

A UAE-compliant investment agreement providing investors with rights to future equity in startups, typically used for early-stage funding.

find out more

Advisor Equity Agreement

UAE-governed agreement establishing advisory services in exchange for equity compensation, including service terms and equity grant details.

find out more

Sweat Equity Agreement

A UAE-compliant agreement governing the exchange of professional services for company equity ownership, structured according to UAE Companies Law and related regulations.

find out more

Equity Release Agreement

UAE-governed agreement enabling property owners to access their property's equity while maintaining residency rights, subject to UAE financial and property regulations.

find out more

Equity Repurchase Agreement

UAE-governed agreement establishing terms for temporary share transfer with repurchase commitment, compliant with local corporate and securities laws.

find out more

Equity Buyout Agreement

UAE-governed agreement for the purchase and sale of company shares, detailing transaction terms and regulatory compliance requirements.

find out more

Phantom Stock Agreement

UAE-governed agreement establishing phantom stock rights that provide economic benefits of stock ownership without actual equity transfer.

find out more

Equity Pledge Agreement

A UAE law-governed agreement creating a pledge over shares in a UAE company as security for obligations, subject to UAE Commercial Companies Law requirements.

find out more

Standby Equity Purchase Agreement

A UAE-law agreement establishing an investor's commitment to purchase newly issued shares from a company under predetermined terms and conditions.

find out more

Equity Commitment Agreement

A UAE law-governed agreement documenting an investor's commitment to provide equity funding to a company under specified terms and conditions.

find out more

Convertible Equity Agreement

A UAE-governed agreement allowing investment to convert into company equity shares at a future date, subject to UAE corporate laws and regulations.

find out more

Employee Equity Agreement

UAE-governed agreement establishing terms for employee equity participation, including share grants, vesting conditions, and associated rights and obligations.

find out more

Standby Equity Distribution Agreement

A UAE-law governed financing arrangement allowing listed companies to issue new shares to an investor on a flexible basis, subject to SCA regulations and Companies Law requirements.

find out more

Equity Participation Agreement

UAE-governed agreement outlining terms for equity investment in a company, including ownership rights, governance, and compliance with local regulations.

find out more

Equity Grant Agreement

UAE-governed agreement outlining terms for granting company equity to employees or consultants, including vesting conditions and exercise rights.

find out more

Vested Equity Agreement

UAE-governed agreement outlining terms for gradual acquisition of company equity rights through a vesting schedule, compliant with UAE commercial and securities laws.

find out more

Equity Transfer Agreement

UAE-governed agreement for transferring company shares or equity interests, detailing transfer terms and ensuring compliance with local laws.

find out more

Equity Distribution Agreement

UAE-governed agreement outlining terms and conditions for company equity distribution, including regulatory compliance and transfer procedures.

find out more

Equity Contribution Agreement

UAE-governed agreement detailing terms and conditions for equity investment in a company, including investment amount, shareholding structure, and parties' rights and obligations.

find out more

Equity Buyback Agreement

UAE-governed agreement for a company to repurchase its shares from existing shareholders, ensuring compliance with local corporate laws and regulations.

find out more

Limited Partnership Agreement Private Equity

A UAE-law governed agreement establishing a limited partnership structure for private equity investments, defining relationships between General and Limited Partners and key operational terms.

find out more

Equity Ownership Agreement

UAE-governed agreement establishing terms for share ownership and transfer in a UAE company, including shareholder rights and corporate governance provisions.

find out more

Equity Investment Agreement

UAE-governed agreement setting out terms for equity investment in a company, including shareholding rights, governance, and investor protections under UAE law.

find out more

Employee Stock Options Agreement

A UAE-compliant agreement governing the grant and exercise of employee stock options, addressing local regulatory requirements and ownership restrictions.

find out more

Stock Purchase Agreement Private Company

A UAE-governed agreement for the sale and purchase of shares in a private company, compliant with UAE Commercial Companies Law and related regulations.

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: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’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; ³Ò±ð²Ô¾±±ð’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 for more details and real-time security updates.

Read our Privacy Policy.