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Forgivable Loan Agreement
I need a Forgivable Loan Agreement for a DKK 2 million loan to a Danish biotech startup, where the loan will be forgiven if the company successfully completes Phase 1 clinical trials by March 2025 and maintains employment of at least 10 researchers throughout the loan period.
1. Parties: Identification of the lender and borrower with full legal names and addresses
2. Background: Context of the loan agreement, relationship between parties, and purpose of the forgivable loan
3. Definitions: Definitions of key terms used throughout the agreement
4. Loan Amount and Disbursement: Specification of the loan amount, currency, and disbursement terms
5. Interest: Interest rate terms, calculation method, and payment schedule
6. Repayment Terms: Schedule and methods of repayment, including any installment arrangements
7. Forgiveness Conditions: Detailed conditions under which the loan may be forgiven, including milestones, timelines, and verification processes
8. Borrower's Representations and Warranties: Statements of fact and assurances made by the borrower
9. Borrower's Obligations: Ongoing duties and responsibilities of the borrower during the loan term
10. Events of Default: Circumstances that constitute default and their consequences
11. Remedies: Rights and actions available to the lender in case of default
12. Notices: Methods and requirements for formal communications between parties
13. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes
14. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments
1. Security: Required when the loan is secured by collateral or guarantees
2. Tax Provisions: Detailed tax implications of loan forgiveness, required when tax consequences need specific addressing
3. Reporting Requirements: Include when regular financial or performance reporting is required to monitor forgiveness conditions
4. Assignment and Transfer: Include when either party needs the right to assign or transfer their rights under the agreement
5. Confidentiality: Required when sensitive information will be shared during the loan term
6. Insurance Requirements: Include when specific insurance coverage is required from the borrower
7. Early Repayment: Include when early repayment options need to be specifically addressed
8. Force Majeure: Include when specific events beyond parties' control need to be addressed regarding forgiveness conditions
1. Repayment Schedule: Detailed schedule of repayment dates and amounts
2. Forgiveness Milestones: Specific metrics, targets, or conditions that trigger loan forgiveness
3. Disbursement Schedule: If the loan is disbursed in tranches, details of timing and conditions
4. Required Documentation: List of documents required for verifying forgiveness conditions
5. Reporting Templates: Standard forms for required periodic reporting
6. Security Details: If applicable, detailed description of any collateral or security arrangements
7. Key Personnel: If relevant to forgiveness conditions, list of key personnel and their roles
8. Compliance Certificate: Template for periodic certification of compliance with forgiveness conditions
Authors
Financial Services
Education
Healthcare
Technology
Research and Development
Biotechnology
Renewable Energy
Social Enterprise
Agriculture
Manufacturing
Start-ups
Non-profit Organizations
Legal
Finance
Compliance
Treasury
Credit
Risk Management
Human Resources
Corporate Governance
Business Development
Project Management
Grant Administration
Chief Financial Officer
Finance Director
Legal Counsel
Compliance Officer
Credit Manager
Investment Manager
Business Development Manager
Treasury Manager
Risk Manager
Financial Controller
Loan Officer
Corporate Secretary
HR Director
Project Manager
Grant Administrator
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