Document:

Exhibit 10.1

 

LOAN AGREEMENT

 

This Agreement is made this 6th day of June 2011 by and between:

 

BZINFIN, S.A., hereinafter referred to as “the Creditor", an international business corporation organized and existing under the laws of the British Virgin Islands, and

 

ENER1, INC., hereinafter referred to as “the Borrower", a company incorporated in accordance with the laws of the State of Florida, U.S.A., hereinafter jointly referred to as the “Parties”.

 

Hereby the Parties have entered into the present Loan Agreement on the following terms and conditions:

 

1.TERMS AND DEFINITIONS

 

“Agreement" means this Loan Agreement between the Parties, including the attachments hereto;

"Loan" means the loan made available by the Creditor to the Borrower under this Agreement;

"Business Day" means the day when lending institutions in the payer’s location perform banking operations;

"Date of Drawdown" means the date on which the full amount of the Loan is transferred to the account of the Borrower;

"Event of Default”  means one of the events referred to in Article 7 of this Agreement;

“Applicable Legislation” means the laws of the State of New York, U.S.A., applicable to contracts made and to be performed entirely within the State of New York.

2. LOAN

2.1. Under the terms of this Agreement the Creditor shall provide to the Borrower a loan equal to US$2,241,410.00, and the Borrower shall be required to repay to the Creditor the Loan granted, as well as interest for its use, in accordance with the procedure and within the deadline specified by the Agreement.

2.2.  The Borrower has full corporate power and authority to enter into this Agreement and to carry out the transactions contemplated hereby. The Board of Directors (or a duly authorized committee thereof) of Borrower has taken all action required by applicable law to be taken by it to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and this Agreement is, upon execution by Borrower, enforceable in accordance with its terms. The execution, delivery and performance of this Agreement by Borrower will not violate any provision of applicable law or of the articles of incorporation or by-laws of Borrower, or result in a breach of or constitute a default under any material agreement, indenture or other instrument to which Borrower is and/or any of its assets or properties are subject.

  

  

 

3. INTEREST

3.1. The Loan interest provided hereby shall be 14.00% (fourteen percent) per annum.

4. CALCULATION OF PERIODS

4.1. The amount of the payment obligations based on running periods shall be calculated on the basis of a year of 365 days and the actual number of days elapsed.

5. TERM OF THE LOAN

5.1. The amount of the Loan granted, as well as interest for its use, shall be repaid to the Creditor not later than on July 15, 2011.

5.2. The Borrower shall repay the Loan to the Creditor by transferring the necessary amounts set forth in Clause 5.1 of the Agreement to the bank account specified by the Creditor.

5.3. The Borrower shall be entitled to repay the Loan, and the interests accrued, in full or in part prior to the end of the term of the Loan without penalty or premium by transferring the respective amount to the Creditor’s bank account.

6. LIABILITY OF THE PARTIES

6.1. The Parties shall be held liable in accordance with the Applicable Legislation for non-fulfillment or improper fulfillment of their obligations under this Agreement.

7. EVENTS OF DEFAULT

7.1. An Event of Default shall arise upon the occurrence of any of the following events:

7.1.1 If the Borrower defaults (fails to execute or improperly executes) in performance of any payment obligations hereunder and such default continues for a period of 5 (five) Business Days from the date of receipt by the Borrower of the relevant notification of such default from the Creditor;

  

-2-

 

7.1.2. If the Borrower defaults in the observance or performance of any other material term or condition of this Agreement and the Borrower fails to remedy or take action to remedy such default within 30 (thirty) business days after notice by the Creditor to the Borrower of such default;

7.1.3. If bankruptcy proceedings are initiated against the Borrower in court, or an authorized body of the Borrower, a court or an authorized state or other authority passes a resolution or decision providing for liquidation or reorganization of the Borrower, or the Borrower’s business activity (or any substantial part thereof) shall be suspended by an act (decision, regulation, decree) of a competent federal, municipal or judicial authority or the Borrower fails to obtain any license required for the Borrower’s core business activity or the term of the above license (if any) expires, the license (if any) shall be revoked during the term of this Agreement.

7.2. If an Event of Default specified in Clause 7.1 occurs, the Creditor shall be entitled:

a) to notify the Borrower that this Agreement is terminated as of such date as is specified by the Creditor; and

b) to require that any and all amounts owed by the Borrower pursuant to this Agreement be immediately paid to the Creditor.

8. OFFSETS. TAXES

8.1. All amounts payable by the Borrower to the Creditor under this Agreement relating to the Loan shall be fully paid without any offsets or counterclaims.

9. OTHER OBLIGATIONS OF THE BORROWER

The Borrower shall be obligated to the Creditor as follows within the term of this Agreement:

9.1. Not to assign or transfer any of its rights or obligations under this Agreement to third parties without the prior written consent of the Creditor;

9.2. To inform the Creditor or otherwise publicly disclose promptly of any material changes relating to the Borrower, including but not limited to: changes to the structure of its charter capital, organizational and legal form, the nature of management (including, in particular, any change in the name, mergers, or any reorganization of the company), as well as of any other circumstances that may substantially affect the volume and the valuation of assets, or result in a substantial increase in the obligations of the Borrower.  The Creditor acknowledges and agrees that any such information that is not publicly disclosed may be deemed material non-public information and subject the Creditor to trading restrictions in the Borrower’s securities under U.S. securities laws and regulations.

  

-3-

 

10. INVALIDITY OF PROVISIONS

10.1. If any provision of this Agreement is or becomes invalid, ineffective, unenforceable or illegal for any reason, this shall not affect the validity or enforceability of any or all of the remaining provisions of this Agreement. In such case, the Parties shall forthwith enter into good-faith negotiations to amend such provisions in such a way that, as amended, the Agreement is valid and legal and to the maximum extent possible carries out the original intent of the Parties.

 

11. EXCHANGE OF INFORMATION

11.1 Any notice, demand, document  or communication under or in connection with this Agreement (hereinafter, “the Documents”) shall be made in writing in the English language or, if originally prepared or required to be prepared in any other language, accompanied by a notarized translation into English.

11.2 The Documents shall be sent by registered mail letter, courier, or fax to the notice addresses set forth beneath the addressee’s signature below. All such Documents, if duly given or made, shall be effective upon receipt, provided that if they are sent by telefax they shall be deemed to be received on the next Business Day following the transmission provided that the addressee's answerback shall have been received by the sender.

12. APPLICABLE LAW.

DISPUTE RESOLUTION

12.1. This Agreement shall be governed by and construed in accordance with the Applicable Legislation.

12.2. Any controversy or claim arising out of or relating to this Agreement shall be referred to the state and federal courts of the State of New York, U.S.A. sitting in the City and County of New York.

13. OTHER PROVISIONS

13.1. This Agreement and the documents referred to herein constitute the entire obligation of the parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or understandings with respect to this transaction (including, without limitation, any pre-contractual negligent or innocent misrepresentation by the Parties).  Any amendment hereto or waiver of any of the terms hereof shall be in writing, and shall be signed by each party to be bound or burdened thereby. This Agreement shall be valid from the Date of Drawdown and shall remain in effect until the Parties fulfill their obligations hereunder in full.

  

-4-

 

 

13.2. The headings used in this Agreement are merely for convenience and shall not be used for purposes of interpretation of this Agreement.

In witness thereof, the following representatives of the above-mentioned Parties signed this Agreement on the 6th day of June, 2011.

	
Creditor:

	 	
Borrower:

	  	 	  
	
BZINFIN, S.A.

	 	
ENER1, INC.

	  	 	  
	
By:

	
/s/ Patrick Bittel    

	 	
By:

	
/s/ Charles Gassenheimer

	
Name: Patrick Bittel

	 	Charles Gassenheimer
	
Title: Proxy Holder

	 	Chief Executive Officer
	  	 	  
	
Notice Address:

	 	
Notice Address:

	
c/o BUDIN & PARTNERS

	 	
1540 Broadway, Suite 25C

	
20, rue Senebier

	 	
New York, NY 10036

	
1211 Geneva 12

	 	
U.S.A.

	
Switzerland

	 	
Attn:  Chief Executive Officer

	
Attn. Patrick Bittel

	 	
Tel:  (212) 920-3500

	
Tel:  +41-22-818-08-08/

	 	
Fax:  (212) 920-3510

	
Fax :  +41-22-818-08-18

	 	  

 

  

-5-6. The Company shall pay Palladium Capital Advisors LLC ("Placement Agent") a commission equal to 7% of each of the Monthly Amounts funded pursuant to the New Financing and 7% of the
$150,000 ($100,000 and $50,000) previously funded to the Company pursuant to those certain Allonges to Secured Promissory Note by and between Lender and the Company dated April 15, 2011, and May 17, 2011, respectively. The commission
will be payable in the form of unsecured convertible Notes as attached hereto as Exhibit 6. Additionally, the Placement Agent shall surrender its February Warrants issued on February 1, 2011 and in exchange for surrendering its Warrants, the
Placement Agent shall receive an additionalunsecured convertible note in the principal amount of $40,000 in the form as attached hereto as Exhibit 6.

     7. In the event the New Investment described in Section 11 below is not timely consummated by July 1, 2011, then the Maturity Date of an aggregate of $275,000 of Principal Amount of Notes
issued on or about November 1, 2010 ("November Notes") shall be extended to November 1, 2011, and the Conversion Price of the November Notes shall be equal to $0.02, subject to adjustment as provided in the November Notes.

     8. The undersigned waive the adjustment of the Conversion Price of the February Notes and exercise price of the February Warrants to $0.02 as a result of the adjustment of the Conversion
Price of the November Notes to $0.02.

     9. In the event the New Investment described in Section 11 below is not timely consummated by July 1, 2011, then the Conversion Price of the February Notes will be amended to the lessor of (i)
$0.02, or (ii) ninety percent (90%) of the average of the three (3) lowest closing bid prices of the common stock as reported by Bloomberg L.P. for the Principal Market for the preceding ten (10) trading days prior to a conversion date, subject
to adjustment as provided in the February Notes.

     10. In the event the New Investment described in Section 11 below is not timely consummated by July 1, 2011, then the Purchase Price of the February Class A Warrants will be amended to
$0.025, subject to adjustment as provided in the February Class A Warrants. The Company undertakes to deliver to Subscribers within five (5) days hereof an aggregate of 13,500,000 additional warrants as required pursuant to Section 3.3 of the
February Class A Warrants as a result of the aforementioned reduction of the Purchase Price.

     11. Provided on or before July 1, 2011, the Company is in receipt of net cash proceeds of not less than $500,000 pursuant to a completed and consummated investment into the Company ("New
Investment"), Lender shall have the option whether or not to fund or compel the Company to take the MonthlyAmounts representing the balance of the first $525,000 to be loaned by Lender to the Company.

     12. The Company represents that there are sufficient shares of Common Stock available for the conversion of the Notes and Warrants to be issued in connection with the initial $525,000 of
the New Financing and undertakes to reserve such shares of Common Stock for Lender.

13. The Company undertakes to file a Proxy Statement with the Securities and Exchange

Commission no later than sixty (60) days from the date hereof and to take all necessary action in order to have increased the authorized shares of Common Stock of the Company to 500,000,000 no later than one hundred twenty
(120) days from the date hereof and to reserve sufficient shares of Common Stock for conversion of the Notes and exercise of the Warrants to be issued in the New Financing. Failure to timely complete the aforementioned will be an Event of Default
under the Transaction Documents.

     14. An Event of Default existing and having been disclosed by the Company to the Lenders in writing or in the Company's Reports prior to the date hereof, shall not be deemed an Event of Default
for the sole purpose of the requirementof the non-occurrence of an Event of Default in the last sentence of section 2 of this Agreement. For purposes of clarification, this section 14 is not a waiver of any of the rights of Subscribers and Lender to
the November, February or New Financing agreements.

     15. With reference to the November Notes, GRQ Consultants hereby waives any and all defaults related to any non-payment of principal and/or interest in connection with the November Notes until
July 1, 2011.

     16. The Company specifically acknowledges and agrees that the New Investment may trigger the anti-dilution rights in connection with outstanding November Notes, February Notes, February
Warrants, and, if applicable, Lender's Notes and Warrants to be issued in connection with the New Financing.

     17. For the benefit of the parties hereto, the Company hereby makes all the representations, warranties, covenants undertakings and indemnificationscontained in the Transaction Documents, as if
such representations were made by the Company as of this date.

     18. Subject to the modifications and amendments provided herein, the Transaction Documents shall remain in full force and effect, including but not limited to the accrual of interest and
liquidated damages, if any. Except as expressly set forth herein, this Agreement shall not be deemed to be a waiver, amendment or modification of any provisions of the Transaction Documents or of any right, power or remedy of the Subscribers, or
constitute a waiver of any provision of the Transaction Documents (except to the extent herein set forth), or any other document, instrument and/or agreement executed or delivered in connection therewith, in each case whether arising before or after
the date hereof or as a result of performance hereunder or thereunder. Except as set forth herein, the Subscribers reserve all rights, remedies, powers, or privileges available under the Transaction Documents, at law or otherwise. This Agreement
shall not constitute a novation or satisfaction and accord of the Transaction Documents or any other document, instrument and/or agreement executed or delivered in connection therewith.

     19. The obligations of each Subscriber hereunderare several and not joint with the obligations of any other Subscribers hereunder, and no Subscriber shall be responsible in any way for the
performance of the obligations of any other Subscriber hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Subscriber pursuant hereto, shall be deemed to constitute the
Subscribers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Subscribers are in any way acting in concert with respect to such obligations or the transactions contemplated by this
Agreement. Each Subscriber shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Subscriber to be joined as an additional party in any
proceeding for such purpose, except as otherwise agreed by the Subscribers.

     20. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties; provided, however, that no party may assign this Agreement or
the obligations and rights of such party hereunder without the prior written consent of the other parties hereto, except as the same is permitted under the Transaction Documents.

     21. This Agreement constitutes the entire agreement among the parties regarding the subject matter herein, and supersedes all prior and contemporaneous agreements and understandings of the
parties in connection herewith. No changes, modifications, terminations or waivers of any of the provisions hereof shall be binding unless in writing and signed by all of the parties thereto.

     22. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined pursuant to the governing law and construction provisions of the
Transaction Documents.

     23. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any
party.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]