Blue Sphere Corporation (OTCMKTS:BLSP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On September 12, 2018, the Company entered into and signed a loan agreement with its chief executive officer, Shlomo Palas (“Shlomi”), to which Shlomi agreed to lend the Company in New Israeli Shekels in an amount equivalent to about US $ 150,000 for a period of up to 60 days from the date of granting the loan and in any case no later than November 6, 2018 whichever is earlier. The loan will not bear interest.
The loan will be used by the Company for working capital, including payment of salaries and amounts owed to third-party service providers.
The loan shall be a senior secured obligation of the company, with priority over all indebtedness of the company (unless such indebtedness is a senior secured obligation of the company or contains a covenant against issuing senior secured indebtedness, in which case the loan shall be junior to such indebtedness). The obligations of the company under the agreement are secured to the terms of this agreement and such security interest includes but is not limited to all of the assets of the company and its subsidiaries. So long as the company shall have any obligation under the agreement, the company shall not (directly or indirectly through any subsidiary or affiliate) incur or suffer to exist or guarantee any indebtedness that is senior to or pari passu with (in priority of payment and performance) the company’s obligations under the loan agreement.
The company granted, pledged, and assigned for the benefit of Shlomi and created in favor of Shlomi a security interest in and to all of the company's right, title, and interest in, to, and under all assets and all personal property of the company and its subsidiaries, whether now or hereafter existing, or now owned or hereafter acquired.
Failure to repay the loan on its date of repayment will be considered an event of default by the Company.
In an event of default, the Company will pay Shlomi $200 per each day of payment delay.
Item 1.01 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 is incorporated by reference into this Item 1.01.
Item 1.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are furnished as part of this Current Report on Form 8-K:
10.1 Shlomo Palas Loan Agreement dated September 12, 2018
BLUE SPHERE CORP. ExhibitEX-10.1 2 ex10-1.htm SHLOMO PALAS LOAN AGREEMENT Blue Sphere Corporation 8-K Exhibit 10.1 LOAN AGREEMENT Dated: September 12,…To view the full exhibit click here
About Blue Sphere Corporation (OTCMKTS:BLSP)
Blue Sphere Corporation is a global clean energy company. The Company develops, manages and owns waste-to-energy and other renewable energy projects. It is an international build, own and operate company (BOO) active around the world in the clean energy production and organics to energy markets. The Company is focused on approximately 10 projects related to the construction, acquisition or development of biogas facilities. It is carrying out a range of waste-to-energy projects around the world with capacities ranging between 1 to 5 megawatts. It has a waste to energy anaerobic digester of approximately 5.2 megawatts plant in Charlotte, North Carolina. The Company operates a waste to energy anaerobic digester of approximately 3.2 megawatts plant in Johnston, Rhode Island. The Company has a waste to energy anaerobic digester of approximately five megawatts plant in Ramat Chovav, Israel. As of September 30, 2015, the Company had not generated any revenues.