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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."
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
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
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
Additional Interest
Affiliate
Agreement
Applicable Law
Availability Period
Base Interest Rate
Borrower
Business Day
Change of Control
Closing Date
Conditions Precedent
Confidential Information
Default
Default Interest
Default Rate
Drawdown
Drawdown Date
Drawdown Notice
Equity Participation Rights
Event of Default
Exit Event
Financial Indebtedness
Financial Statements
Group
Guarantor
Interest Payment Date
Interest Period
Lender
Loan
Material Adverse Effect
Maturity Date
Participation Amount
Participation Percentage
Participation Rights
Permitted Security
Principal Amount
Qualifying IPO
Repayment Date
Repayment Schedule
Security
Security Documents
Security Interest
Subsidiary
Tax
Transaction Documents
Upside Return
Valuation
Loan Facility
Purpose
Drawdown
Interest
Equity Participation
Profit Share
Repayment
Prepayment
Security
Conditions Precedent
Representations and Warranties
Information Undertakings
Financial Covenants
General Undertakings
Events of Default
Acceleration
Changes to Parties
Assignment and Transfer
Confidentiality
Information Rights
Board Rights
Anti-dilution
Tag-along Rights
Drag-along Rights
Exit Provisions
Costs and Expenses
Indemnities
Set-off
Notices
Calculations
Amendments and Waivers
Severability
Counterparts
Third Party Rights
Governing Law
Jurisdiction
Dispute Resolution
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