EX-10.1 2 ea021094101ex10-1_climate.htm LOAN AGREEMENT, DATED AUGUST 5, 2024, BY AND BETWEEN CLIMATEROCK AND ETERNAL BV

Exhibit 10.1

 

DATED 05 August 2024

 

 

 

 

 

 

 

LOAN AGREEMENT

 

 

 

Between

 

 

 

 

 

(1) ClimateRock ‘The Borrower’

 

and

 

(2) Eternal BV ‘The Lender’

 

 

 

 

 

 

 

 

 

 

 

Long Form Loan Agreement - Unsecured 1

 

 

THIS AGREEMENT is dated and made on the 5th day of August 2024.

 

BETWEEN:

 

(1)ClimateRock (the “Borrower”), 25 Bedford Square, London, WC1B 3HH, The United Kingdon and

 

(2)Eternal BV (the “Lender”), Mariëndaal 8, 6861 WN Oosterbeek, The Netherlands.

 

NOW IT IS HEREBY AGREED as follows:

 

BACKGROUND

 

The Lender has provided the Borrower with loans and has agreed to provide the Borrower with an additional loan facility of a total of USD 1, 500,000 on an unsecured basis (the “Loans”).

 

1.Definitions and Interpretation

 

1.1In this agreement:-

 

  “Advance” means an advance made or to be made by the Lender to the Borrower under this Agreement;
     
  “Business Day” a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business;
     
  “Commencement Date” means the date of this Agreement;
     
  “Drawdown Date” means the date on which an Advance is or was made;
     
  “Event of Default” means any event or circumstance as specified in clause 12;
     
  “Final Repayment Date” means 31 March 2025 or, if earlier, the date of the consummation of the initial business combination of the Company;
     
  “Finance Documents” means this agreement, the Security Documents and any other document designated as such by the Lender and the Borrower;
     
  “Interest Payment Date” means 31 December 2024, and the Final Repayment Date;
     
  “Potential Event of Default” means any event or circumstances which would, on the giving of notice, expiry of any grace period or making of any determination under this Agreement, become an Event of Default;
     
  “Repayment Date” means each of the dates specified in clause 6;

 

Long Form Loan Agreement - Unsecured 2

 

 

  “Security” means any mortgage, debenture, charge (whether fixed or floating, legal or equitable), pledge, lien, assignment by way of security, title retention or any other type of arrangement having a similar effect to any of them;
     
  “Tax Deduction” means a deduction or withholding for, or on account of, Tax from a payment under the Finance Documents;
     
  “Unpaid Amount” means any sum or amount which is not paid on the due date for its payment under this Agreement;
     
  “Warranties” means the representations and Warranties set out at clause 10.

 

1.2Any reference in this agreement to a statute or a provision of a statute shall be construed as a reference to that statute or provision as amended, re-enacted or extended at the relevant time.

 

1.3The headings in this agreement are for convenience only and shall not affect their interpretation.

 

2.The Facility

 

Subject to and in accordance with this agreement the Lender and the Borrower agree and ratify that on the date of this Agreement Loans with a total amount of USD 1,406,761.23 were provided by Lender to Borrower and Lender agrees to lend to the Borrower additional amounts totaling up to USD 1,500,000 available to withdraw in the period from 5 August 2024 to 31 March 2025 (the “Loan Date”).

 

3.Purpose

 

3.1The Borrower shall use all sums borrowed by it under this agreement to support anticipated offering costs and expenses.

 

3.2The Lender is not obliged to monitor or verify how any amount under this agreement is used.

 

4.Drawdown

 

Subject to clause 5 below:

 

4.1The Loan, to extent not yet drawn on the date of this Agreement, is available for drawing by the Borrower in unlimited number of instalments in the period form 3 August 2024 to 31 March 2025.

 

4.2The Lender shall pay to the Borrower in immediately available cleared funds during the Drawdown Period, to or for the account of the Borrower as per request of the Borrower.

 

4.3Delivery of a drawdown notice shall constitute a representation and warranty by the Borrower that on the date of drawdown notice, the Warranties are correct and that no Event of Default or Potential Event of Default is continuing or would result from the proposed Loan.

 

4.4A drawdown notice cannot be revoked without the written consent of the Lender.

 

4.5Any payment which is due to be made on a day which is not a Business Day shall be made on the next Business Day.

 

5.Interest

 

5.1The Loan shall bear interest at an annual rate of 0 percent.

 

Long Form Loan Agreement - Unsecured 3

 

 

6.Repayments

 

6.1The Borrower shall repay the Loan in full by way of a single or multiple repayments before or on the Final Repayment Date.
   
  In the event that Borrower does not repay the Loan within 10 days of the consummation of the initial business combination of the Company the Borrower will pay an interest of 5 percent per month to the Lender until the date of repayment of the Loan.

 

7.Re-borrowing

 

The Borrower may not re-borrow any part of the Loan which has been repaid.

 

8.Payments

 

All payments made by the Borrower to the Lender under this agreement shall be made in full and paid on the due date for that payment in US dollars and in immediately cleared funds to the account of the Lender IBAN: NL72 INGB 0006 7128 70 Or any other account as the Lender may notify the Borrower.

 

9.Value Added Tax

 

All consideration expressed to be payable under a Finance Document by the Borrower to the Lender shall be deemed to be exclusive of any VAT.

 

10.Representations and Warranties

 

The Borrower represents and warrants as follows:

 

10.1The Borrower has the power to use its assets and carry on its business as it is being conducted, and to execute, deliver and perform its obligations under the Finance Documents and the transactions contemplated by them.

 

10.2The Borrower has taken all necessary action and obtained all required or desirable consents to enable it to execute, deliver and perform its obligations under this agreement and to make this agreement admissible in evidence in its jurisdiction of incorporation. Any such authorisations are in full force and effect.

 

10.3The information, in written or electronic format, supplied by the Borrower to the Lender in connection with the Facility and this agreement was, at the time it was supplied, to the best of the Borrower’s knowledge:

 

10.3.1complete, true and accurate in all material respects at the time it was supplied; and

 

10.3.2not misleading in any material respect, nor rendered misleading by a failure to disclose other information,

 

except to the extent that it was amended, superseded or updated by more recent information supplied by the Borrower to the Lender.

 

10.4Each set of financial statements delivered to the Lender by the Borrower were prepared in accordance with consistently applied accounting principles, standards and practices generally accepted in its jurisdiction of incorporation, and present the Borrower’s financial condition and operations during the relevant accounting period fairly and accurately.

 

10.5No litigation, arbitration or administrative proceedings are taking place, pending or, to the Borrower’s knowledge, threatened against it or any of its assets.

 

10.6No Event of Default has occurred, is continuing or will occur when an Advance is made.

 

10.7There has been no material adverse change in the business or financial condition of the Borrower since the date of this agreement.

 

Long Form Loan Agreement - Unsecured 4

 

 

11.Covenants

 

The Borrower covenants with the Lender as follows:

 

11.1The Borrower shall not sell, lease, transfer or otherwise dispose of any of its assets other than:

 

11.1.1trading stock in the ordinary course of business;

 

11.1.2assets whose market value is worth less than USD100,000.

 

11.2The Borrower shall notify the Lender of any Potential Event of Default or Event of Default (and the steps being taken, if any, to remedy it) promptly on becoming aware of its occurrence.

 

11.3The Borrower shall supply to the Lender its financial statements for the financial year.

 

11.4The Borrower shall supply to the Lender:

 

11.4.1details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against the Lender as soon as it becomes aware of them.

 

11.4.2any further information about the financial condition, business and operations of the Borrower that the Lender may reasonably request.

 

12.Events of Default

 

The Loan plus accrued interest shall (subject to the service of notice from the Lender to the Borrower) become immediately due and payable by the Borrower, in so far as remaining unpaid, if an Event of Default occurs.

 

Each of the events or circumstances set out below is an Event of Default.

 

12.1The Borrower fails to pay any sum payable by it under the Finance Documents when due, unless its failure to pay is caused solely by an administrative error or technical problem and payment is made within 30 Business Days of its due date.

 

12.2The Borrower fails (other than a failure to pay) to comply with any provision of the Finance Documents and (if the Lender considers, acting reasonably, that the default is capable of remedy) such default is not remedied within 30 days of:-

 

12.2.1the Borrower becoming aware of the default; or

 

12.2.2the Lender notifying the Borrower of the default and the remedy required,

 

Whichever is the earliest.

 

12.3Any representation, warranty or statement made, repeated or deemed made by the Borrower in, or pursuant to, the Finance Documents is (or proves to have been) incomplete, untrue, incorrect or misleading when made, repeated or deemed made.

 

12.4Any indebtedness of the Borrower is not paid when due; or

 

12.4.1any indebtedness becomes due, or capable of being declared due, prior to its stated maturity by reason of default; or

 

12.4.2any expropriation, attachment, sequestration, distress, execution or enforcement of Security affects any of the Borrower’s assets.

 

Long Form Loan Agreement - Unsecured 5

 

 

12.5An event or circumstance referred to in Clause 12.4 shall not constitute an Event of Default if the aggregate amount of the indebtedness is less than USD 1,000.

 

12.6Any action, proceedings, procedure or step is taken in relation to:

 

12.6.1the suspension of payments, winding up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower; or

 

12.6.2the appointment of a liquidator, receiver, administrator, compulsory manager or other similar officer in respect of the Borrower or any of its assets.

 

12.7Any Security on or over the assets of the Borrower becomes enforceable and is not discharged within 30 days of enforcement commencing.

 

12.8Where any event occurs (or circumstances exist) which, in the reasonable opinion of the Lender, is likely to materially and adversely affect the ability of the Borrower to perform all or any of its obligations under, or otherwise comply with, the terms of the Finance Documents or any of them.

 

13.Assignment and Transfer

 

13.1The Lender may assign any of its rights, or transfer any of its rights or obligations by novation.

 

13.2The Borrower may not assign any of its rights or obligations under the Finance Documents.

 

14.Set-Off

 

14.1The Lender may set off any amounts owing under this agreement against any sums owing the Lender to the Borrower.

 

14.2The Lender shall not be obliged to exercise any rights given to it under this clause.

 

15.Remedies, Waivers, Amendments and Consents

 

15.1Any amendment to this agreement shall be in writing and signed by or on behalf of each party.

 

15.2Any waiver of any right or consent given under this agreement is only effective if it is in writing and signed by the waiving and consenting party, and applies only in the circumstances for which it is given.

 

15.3No delay or failure to exercise any right under this agreement shall operate as a waiver of that right.

 

15.4No single or partial exercise of any right under this agreement shall prevent any further exercise of the same or any other right under this agreement.

 

15.5Rights and remedies under this agreement are cumulative and not exclusive of any other rights or remedies provided by law or otherwise.

 

16.Severance

 

If any provision of this agreement is held by any competent authority to be invalid or unenforceable in whole or in part, the validity of the other provisions of this document and the remainder of the provision in question shall not be affected thereby.

 

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17.Third Party Rights

 

A person who is not a party to this agreement shall have no rights under this agreement pursuant to the Contracts (Rights of Third Parties) Act 1999.

 

18.Communications

 

18.1All communications between the parties about the loan shall be in writing and delivered by hand or sent by pre-paid first class post or sent by fax or e-mail:

 

18.1.1(in the case of communications to the Lender) to its registered office or such changed address as shall be notified to the Borrower by the Lender; or

 

18.1.2(in the case of the communications to the Borrower) to the registered office of the addressee (if it is a company) or (in any other case) to any address of the Borrower set out in any document which forms part of the contract or such other address as shall be notified to the Lender by the Borrower.

 

18.2Communications shall be deemed to have been received:

 

18.2.1if sent by pre-paid first class post, two Business Days after posting (exclusive of the day of posting); or

 

18.2.2if delivered by hand, on the day of delivery; or

 

18.2.3if sent by fax or e-mail on a Business Day prior to 4.00 pm, at the time of transmission and otherwise on the next Business Day.

 

18.3Communications addressed to the Lender shall be marked for the attention of Charles Ratelband.

 

19.Waiver against trust account

 

The Lender hereby agrees on behalf of itself and its affiliates that, notwithstanding anything to the contrary in this agreement, neither the Lender nor any of its affiliates do now or shall at any time hereafter have any right, title, interest or claim of any kind in or to any monies in the trust account of Borrower (as described in detail in the IPO prospectus of Borrower) or distributions therefrom, or make any claim against the trust account (including any distributions therefrom), regardless of whether such claim arises based on contract, tort, equity or any other theory of legal liability.

 

20.Governing Law and Jurisdiction

 

This Deed shall be governed by, construed and enforced in accordance with the law of England and Wales to the jurisdiction of which the parties hereto submit.

 

Long Form Loan Agreement - Unsecured 7

 

 

IN WITNESS OF WHICH the parties have signed this agreement the day and year first above written.

 

/s/ Per Regnarsson   /s/ Charles Ratelband
Signed by Per Regnarsson
Re for and on behalf of the Borrower
ClimateRock
  Signed by Charles Ratelband
for and on behalf of the Lender
Eternal BV

 

Long Form Loan Agreement - Unsecured 8