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The Simple Convertible Loan Agreement is commonly used in the Danish startup and growth company ecosystem as a flexible financing instrument. It provides a straightforward way for companies to secure bridge financing or early-stage investment while deferring company valuation discussions. This document type is particularly valuable when immediate equity investment is not practical or when parties prefer to link the company's valuation to a future funding round. The agreement complies with Danish law, including the Danish Companies Act and financial regulations, and typically includes provisions for loan terms, interest, conversion mechanics, and investor protections. The Simple Convertible Loan Agreement is designed to balance the interests of both investors and companies while maintaining legal certainty under Danish jurisdiction.

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

2. Background: Context of the loan arrangement and purpose of the agreement

3. Definitions and Interpretation: Key terms used throughout the agreement, including Conversion Price, Maturity Date, and Qualifying Event

4. Loan Amount and Drawdown: Specification of the loan amount, currency, and disbursement procedures

5. Interest: Interest rate, calculation method, and payment terms in compliance with Danish Interest Act

6. Repayment: Terms for repayment of the loan, including Maturity Date and early repayment provisions

7. Conversion Rights: Conditions and mechanics for converting the loan into shares, including conversion price and timing

8. Conversion Procedure: Step-by-step process for executing the conversion, including necessary corporate actions

9. Representations and Warranties: Standard statements about legal capacity, authority, and accuracy of information

10. Borrower Covenants: Ongoing obligations of the Borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences

12. Notices: Communication requirements and contact details

13. Assignment and Transfer: Rules regarding transfer of rights under the agreement

14. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

15. Counterparts and Execution: Provisions for signing and executing the agreement