Document:

Blue Sphere Corporation 8-K

 

Exhibit 10.2

 

 

 

 

DATED
THIS 13th DAY OF MARCH, 2016

 

 

 

 

Between

 

 

NANYANG
TECHNOLOGICAL UNIVERSITY

 

 

And

 

 

BLUE SPHERE
CORPORATION

 

 

 

 

TERMINATION
AGREEMENT

 

 

 

    	 

    	 

    

CONFIDENTIAL

THIS AGREEMENT is
made as of the 13th day of March, 2016 by and between

 

		(1)  
	NANYANG
            TECHNOLOGICAL UNIVERSITY, located at 50 Nanyang Avenue, Singapore 639798 (hereinafter referred to as
            “NTU”), a wholly owned subsidiary of Nanyang Technological University (hereinafter referred to as
            “NTU”);

 

and

 

		(2)	BLUE SPHERE CORPORATION,
a company incorporated in Nevada, United States and having its business address at 301 McCullough Drive, 4th Floor,
Charlotte, NC 28262, U.S.A. (hereinafter referred to as “Blue Sphere” or “Licensee”).

 

(hereinafter collectively
referred to as the “Parties” and individually as a “Party”).

 

 

WHEREAS:

 

		(A)	The Licensee and NTU (“Parties”) have previously on 30 October 2014 entered into an
exclusive license agreement (hereinafter referred to as “License Agreement”) under which NTU has granted exclusive
license rights to Licensee for the Technology with the inventions titled:

 

(i) Synthesis of High-Aspect Ratio
Titanate Nanotubes and Its Environmental Applications As Free-Standing Multifunctional Membrane (NTU Ref: TECH/119/13); and

(ii) Correlating Aspect Ratio of
Nanotubular Structures with Electrochemical Performance to Achieve Ultrafast-Charging (NTU Ref: TECH/197/13.

 

Parties wish to terminate the rights,
liabilities and obligations of the Licensee to all the above Technologies listed in the License Agreement; and Parties mutually
agreed to such termination pursuant to Clause 13.2 of the License Agreement.

 

		(B)	The Parties hereby agree to mutually terminate the License Agreement pursuant to this Termination
Agreement and forever release each other from any claims, liabilities and/or restrictions there under and/or with respect thereto.

 

 

THEREFORE the Parties
do hereby agree as follows:

 

		1.	INTERPRETATION

 

		1.1.	Unless otherwise provided in this Termination Agreement, terms used
in this Termination Agreement shall have the same meaning and construction where defined in the License Agreement.

 

 

    	Page 2 of 4

    	 

    

CONFIDENTIAL

		2.	TERMINATION

 

		2.1.	The Parties hereby agree to terminate the License Agreement.

 

		2.2.	The Parties acknowledge that Licensee has paid to NTUitive a milestone
payment in the amount of Singapore Dollars Ten Thousand (S$ 10,000) pursuant to Clause 5.1(a) of the License Agreement and that
such payment has been granted to NTU for past consideration of NTU agreeing to grant the rights to an exclusive license under the
License Agreement. As agreed in Clause 5.1 of the License Agreement, such payment is non-refundable in the event of early termination
of the License Agreement.

 

		2.3.	The Parties agree that this Termination Agreement shall be effective
as of March 13th, 2016 (“Termination Effective Date”).

 

		2.4.	As of the Termination Effective Date and except as set forth in Clause
3 below, each Party hereby waives and forever release the other Party (“Released Party”) from any claims, lia
bilities, demands and/or restrictions which may apply to such Released Party under and/or with respect to the License Agreement.

 

 

 

		3.	SURVIVAL

 

		3.1.	Notwithstanding the survival provisions of the License Agreement,
except to the extent specifically modified pursuant to this Clause 3 of this Termination Agreement, the provisions of the License
Agreement which by its terms are intended to survive termination of the License Agreement shall survive the termination effected
hereby.

 

 

		4.	ENTIRE AGREEMENT

 

		4.1	This Termination Agreement sets forth the entire agreement and understanding among the Parties
as to the subject matter hereof, and none of the terms of this Agreement shall be amended or modified except in writing signed
by the Parties.

 

		5.	GOVERNING LAW

 

		5.1	This Termination Agreement shall be governed by, interpreted and construed in accordance with the
Laws of Singapore.

 

 

 

 

 

    	Page 3 of 4

    	 

    

CONFIDENTIAL

IN WITNESS WHEREOF
the Parties have caused this Agreement to be executed on the date first above written.

 

 

	
        SIGNED by for and on behalf of

         
	 	
        SIGNED by for and on behalf of

         

	NANYANG TECHNOLOGICAL UNIVERSITY	 	BLUE SPHERE CORPORATION
	
         

         

         

         
	 	
         

         

         

         

	Name: Dr Lim Jui	 	
        Name:

        

	Designation: CEO, NTU Innovation	 	Designation: 
	 	 	 
	 	 	 
	 	 	 
	In the presence of:	 	In the presence of:
	
         

         

         

         
	 	
         

         

         

         

	Name: Dr Chava Vijaya Saradhi	 	Name:
	Designation: Deputy Director, NTUitive	 	Designation:

 

 

 

    	Page 4 of 4Exhibit

EXHIBIT 10.1

WAIVER AND FIRST AMENDMENT 
TO
AMENDED AND RESTATED MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT

WAIVER AND FIRST AMENDMENT TO AMENDED AND RESTATED MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT, dated as of March 23, 2016 (this “Amendment”), among THE SCOTTS COMPANY LLC, a limited liability company organized under the laws of Ohio (the “Company”), THE SCOTTS MIRACLE-GRO COMPANY, a company organized under the laws of Ohio (the “Parent”), THE BANKS PARTY HERETO and MIZUHO BANK, LTD., as administrative agent (together with its permitted successors in such capacity, the “Administrative Agent”).
RECITALS: 
WHEREAS, reference is made to that certain Amended and Restated Master Accounts Receivable Purchase Agreement, dated as of September 25, 2015, among the Company, the Parent, the Banks party thereto and the Administrative Agent (as in effect on the date hereof immediately before giving effect to the amendments contemplated hereby, the “Existing Agreement” and as amended by this Amendment, the “MARPA”; capitalized terms used herein but not otherwise defined herein shall have the meaning given to them in the MARPA);
WHEREAS, the Facility Parties have requested that the Banks and the Administrative Agent agree to add subsidiaries and affiliates of the Approved Debtors as “Approved Debtors” under the MARPA and the Banks and the Administrative Agent have agreed to such request subject to the terms and conditions hereof; and
WHEREAS, the Facility Parties, the Banks and the Administrative Agent have agreed to amend the recourse nature of the Existing Agreement as further detailed in this Amendment; and 
WHEREAS, the Facility Parties have requested that the Banks and the Administrative Agent waive the timing of certain delivery requirements in the MARPA and the Banks and the Administrative Agent have agreed to such request subject to the terms and conditions hereof.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Facility Parties, the Administrative Agent and each Bank party to the Existing Agreement hereby agree as follows:
SECTION 1.    AMENDMENTS. Effective as of the Amendment Effective Date (as defined in Section 3 hereof), the Existing Agreement is hereby amended as follows:
(a)    The definition of the term “Blocked Accounts” shall be amended and restated to read in its entirety as follows:
“Blocked Accounts” means the accounts opened by the Company in its name for the Approved Debtors with JPMorgan Chase Bank, N.A. or such other bank approved by the Administrative Agent for the purpose of collecting the Purchased Receivables of such Approved Debtors and which shall be subject to a blocked account agreement with the Administrative Agent providing the Administrative Agent, for the benefit of the Banks, with control over such account. 

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(b)    The definition of the term “Debtor Default Event” shall be amended by deleting therein the words “due to a Financial Inability to Pay”.
(c)    The definition of the term “Defaulted Receivable” shall be amended and restated to read in its entirety as follows:
“Defaulted Receivable” means any Purchased Receivable which is past due. 
(d)    The definition of the term “Dilution” shall be amended by deleting therein the words “not arising from such Debtor’s Financial Inability to Pay”.
(e)    The definition of “Financial Inability to Pay” shall be deleted in its entirety.
(f)    The definition of the term “Pro Rata Share” shall be amended by deleting the last sentence thereof.
(g)    The definition of the term “Repurchase Event” shall be amended by (i) deleting in clause (iii)(z) thereof the words “or such Purchased Receivable being written off as uncollectible based on Debtor’s Financial Inability to Pay” and (ii) adding a new clause (iv) thereto which shall read as follows:
(iv)    such Purchased Receivable remains unpaid after its Maturity Date.
(h)    Section 4.1(b) shall be amended by deleting therein the words “; provided further, for the avoidance of doubt, this Section 4.1(b) shall not apply to any repurchase of a Receivable by a Bank required in accordance with Section 4.5(e)”.
(i)    Section 4.1(h) shall be amended and restated to read in its entirety as follows:
(h)    As of such Settlement Date, solely with respect to any Committed Purchase, such Receivables shall be required to be purchased only with respect to any Approved Debtor the ultimate parent of which has public debt ratings equal to or exceeding BBB- and Baa3 by Standard & Poor’s Ratings Services and Moody’s Investor Service, respectively.
(j)    Section 4.2(a)(i) shall be amended and restated to read in its entirety as follows:
(i) Each Bank that is purchasing Receivables on such Settlement Date, whether in its sole discretion in accordance with Section 4.1 or as a Committed Purchase shall make its Pro Rata Share of the Purchase Price thereof available to the Administrative Agent not later than 2:00 p.m. (New York City time) on such Settlement Date, by wire transfer of same day funds in Dollars, to the Payment Account; and
(k)    Section 4.2(b) shall be amended by deleting therein the words “and the requirements of Section 4.5(e)”.
(l)    Section 4.3 shall be amended by deleting therein the words “4.1(a)” and replacing them with “4.1”.
(m)    Section 4.4(b) shall be amended by deleting therein the words “and the requirements of Section 4.5(e)”.

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(n)    Section 4.4(d) shall be amended by deleting therein the words “Sections 4.5(e) and” and replacing them with “Section”.
(o)    Section 4.5(e) shall be amended and restated to read in its entirety as follows:
(e) On each Settlement Date, the Company shall purchase from the Banks all Purchased Receivables (including, without limitation, any Defaulted Receivables) for a purchase price equal to the Purchase Price of such receivables minus any amounts received by the Banks as repayment of such Purchased Receivables (such purchase price, the “Repurchase Price”); provided that during the Commitment Period the Company may use the Repurchase Price that it would have paid the Banks for such Purchased Receivables to purchase Replacement Receivables, provided that, subject to Section 4.3, the Company complies with the limitations set forth in Section 2.1 relating to the Agreement Amount and the Debtor Sublimits.
(p)    Section 4.6(a) shall be amended by deleting therein the words “or been required in accordance with Section 4.5(e)”.
(q)    Section 5.1.2 shall be amended and restated to read in its entirety as follows:
5.1.2 Except as set forth in Section 5.1.1 with respect to partial reductions, adjustments, cancellations or setoffs of any Original Amount, if a Repurchase Event with respect to a Purchased Receivable has occurred, the Administrative Agent may, by written notice, require the Company to pay to the Banks in respect of such Purchased Receivable, as directed by the Administrative Agent, an amount equal to the Agreed Base Value of such Purchased Receivable (or so much of it as was paid by the Banks to the Company and remains unpaid as Collections), and if such Purchased Receivable is being repurchased by the Company after the Maturity Date of such Purchased Receivable, together with interest thereon at the interest rate specified in Section 7.6 from the due date to the date of the Company’s payment in full thereof, and any other amounts then payable by the Company hereunder including breakage costs under Section 7.4, whereupon such amount shall become due and payable from the Company to the Banks on the date specified in such notice and shall be paid into an account specified by the Administrative Agent.  On receipt of all amounts referred to above, the Banks shall (at the cost and expense of the Company) execute such documents as may be necessary to re-assign the applicable Purchased Receivables without recourse, representation or warranty (except as to the title thereto by the Banks), to the Company.
(r)    Section 5.2 shall be amended by deleting therein the words “and without recourse except as set forth in Sections 4.5(e), 5.1, 7.2, 7.4, 8, 15 and 18.5”.
(s)    Section 8.1.2 shall be amended by deleting therein the words “or the final proviso of Section 4.5(e)”.
(t)    Section 10.1(k) shall be amended by deleting therein the words “(if any Purchased Receivable is more than 60 days past due, other than as a result of a Debtor’s Financial Inability to Pay, it shall be presumed that the Debtor has asserted a contractual claim or dispute)”.

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(u)    Section 15.4 shall be amended by deleting (i) in clause (vi) thereof the words “not arising from the Financial Inability to Pay of such Debtor” and “(if any Receivable is more than 60 days past due, other than as a result of the Financial Inability to Pay of the Debtor, it shall be presumed that such Debtor has asserted a contractual claim or dispute)” and (ii) the words “provided that nothing in this Section 15.4 shall be deemed to provide indemnity to the Administrative Agent and the Banks for credit losses resulting from the Financial Inability to Pay of any Debtor” appearing at the very end of such Section 15.4.
(v)    Section 18.5(c) shall be amended by deleting therein (i) the words “except to the extent provided in Section 4.5(e)(ii)(x)”, (ii) the words “other than Defaulted Receivables” and (iii) the words “or become Defaulted Receivables”.
(w)    Section 18.5(d) shall be amended by deleting therein the words “(other than Defaulted Receivables)” in both instances where they appear.
(x)    A new Section 19.12 shall be added which shall read as follows:
19.12 Recourse        Notwithstanding anything herein to the contrary, the Administrative Agent and the Banks shall have full recourse to the Company in case of non-payment of any Purchased Receivable on the Maturity Date thereof, regardless of the reason for such non-payment.  
(y)    Schedule 5 shall be amended and restated to read as set out on Annex hereto.
SECTION 2.    LIMITED WAIVER.  In reliance upon the representations and warranties of the Company and the Parent set forth herein, the Banks and the Administrative Agent hereby grant a one-time limited waiver (a) with respect to the proposed Settlement Date to occur on March 24, 2016 only, of the requirement in Section 4.1(a) of the MARPA that a Purchase Request and a Portfolio Report is delivered at least four (4) Business Days prior to the Settlement Date, and agree, with respect to such Settlement Date only, that such documents may be delivered one (1) Business Day prior thereto and (b) of the requirement in Section 3.2 of the MARPA that an officer’s certificate is delivered at least four (4) Business Days prior to the effective date of the Commitment Period and agree that such officer’s certificate may be delivered one (1) Business Day prior thereto. This waiver shall not be deemed a waiver of any other event or occurrence which has occurred or exists under the MARPA or any other Transaction Document or hereafter may occur under the MARPA or any other Transaction Document, or to establish a custom or course of dealing among the parties hereto or any of them.
SECTION 3.    EFFECTIVENESS.  This Amendment and the amendments and waivers set forth herein shall be effective as of the date hereof (the “Amendment Effective Date”) subject to the satisfaction of each of the following conditions, and in case of any documentation to be delivered to the Administrative Agent, such documentation shall be in form and substance reasonably satisfactory to the Administrative Agent:
(a)    Amendment. The Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of (i) each Facility Party, (ii) the Administrative Agent and (iii) each Bank.
(b)    Representations and Warranties.  At the time of and immediately after giving effect to the amendments contemplated hereby on the Amendment Effective Date, the representations and warranties contained in Section 10.1 of the Existing Agreement and in the other Transaction Documents shall be true and correct in all material respects (except for those representations and warranties that are conditioned by 

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materiality, which shall be true and correct in all respects) on and as of the Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which shall be true and correct in all respects) on and as of such earlier date.
(c)    No Termination Event. At the time of and immediately after giving effect to the amendments contemplated hereby on the Amendment Effective Date, no Termination Event shall have occurred and be continuing. 
(d)    Other. The Administrative Agent shall have received such other assurances as the Administrative Agent may reasonably request in connection with the transactions contemplated by this Amendment.
SECTION 4.    MISCELLANEOUS.  
(a)    This Amendment is a Transaction Document. All references in the Existing Agreement, in any of the other Transaction Documents and in any other document or instrument incidental hereto or thereto shall, on and after the Amendment Effective Date, be deemed to mean and refer to the Existing Agreement, as amended pursuant to this Amendment. 
(b)    To induce the Banks and the Administrative Agent to enter into this Amendment, the Company hereby represents and warrants to the Banks and the Administrative Agent that as of the Amendment Effective Date, upon giving effect to this Amendment:
(i)    Representations and Warranties.  The representations and warranties contained in the MARPA and in the other Transaction Documents apply (and are hereby incorporated herein by reference as if fully set forth herein) with respect to this Amendment and are true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which shall be true and correct in all respects) on and as of the Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties relate to an earlier date, in which case such representations and warranties were true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which shall be true and correct in all respects) on and as of such earlier date.
(ii)    No Termination Event.  No event has occurred and is continuing or would result from the consummation of this Amendment that would constitute a Termination Event. 
(c)    The Company hereby agrees that it shall, in accordance with Section 15.2 of the MARPA, promptly upon receipt of an invoice therefor, pay all reasonable fees and expenses of legal counsel to the Administrative Agent in relation to the preparation and execution of this Amendment. 
(d)    Each Facility Party, by its signature below, hereby (i) agrees that, notwithstanding the effectiveness of this Amendment, the MARPA continues to be in full force and effect (except, in the case of the MARPA, to the extent expressly amended hereby) and (ii) affirms and confirms its obligations under each of the Transaction Documents to which it is a party. 

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(e)    This Amendment and the rights and obligations of the parties hereunder shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York, without regard to conflict of laws principles thereof that would result in the application of any other law. 
(f)    This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
(g)    This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile electronic transmission or by e-mail transmission of a pdf (or similar) file format document shall be as effective as delivery of a manually executed counterpart of this Amendment. 
[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Amendment as of the day and year first above written.

	
		
	 
	THE SCOTTS COMPANY LLC

	 
	 

	 
	 

	 
	By:_/s/ THOMAS RANDAL COLEMAN_______

	 
	Name:  Thomas Randal Coleman

	 
	Title:  Executive Vice President and Chief Financial Officer

	 
	 

	 
	 

	 
	 

	 
	THE SCOTTS MIRACLE-GRO COMPANY

	 
	 

	 
	 

	 
	By: _/s/ THOMAS RANDAL COLEMAN_______

	 
	Name:  Thomas Randal Coleman

	 
	Title:  Executive Vice President and Chief Financial Officer

  

[Signature Page to First Amendment to Amended and Restated Master Accounts Receivable Purchase Agreement]

	
		
	 
	MIZUHO BANK, LTD., as Administrative Agent and a Bank

	 
	 

	 
	 

	 
	By:_/s/ TAKAYUKI TOMII__________________

	 
	Name:  Takayuki Tomii

	 
	Title:  Deputy General Manager

[Signature Page to First Amendment to Amended and Restated Master Accounts Receivable Purchase Agreement]

	
		
	 
	THE BANK OF NOVA SCOTIA, as a Bank

	 
	 

	 
	 

	 
	By:_/s/ JONATHAN KHAN__________________

	 
	Name:  Jonathan Khan

	 
	Title:  Director, Supply Chain Finance

	 
	 

	 
	 

	 
	By:_/s/ SILVIA BRUDAR___________________

	 
	Name:  Silvia Brudar

	 
	Title:  VP, Trade Finance Sales

	 
	 

[Signature Page to First Amendment to Amended and Restated Master Accounts Receivable Purchase Agreement]

	
		
	 
	COÖPERATIEVE RABOBANK U.A. (formerly known as Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland"), NEW YORK BRANCH, as a Bank

	 
	 

	 
	 

	 
	By:_/s/ THOMAS MCNAMARA______________

	 
	Name:  Thomas McNamara

	 
	Title:  Vice President

	 
	 

	 
	 

	 
	By:_/s/ CHRISTOPHER LEW________________

	 
	Name:  Christopher Lew

	 
	Title:  Executive Director

	 
	 

[Signature Page to First Amendment to Amended and Restated Master Accounts Receivable Purchase Agreement]

ANNEX 

SCHEDULE 5
APPROVED DEBTORS

	
			
	Approved Debtor
	Applicable Margin
	Debtor Sublimit

	Lowe’s Companies, Inc. and its Subsidiaries and Affiliates
	0.95%
	$240 million

	Wal-Mart Stores Inc. and its Subsidiaries and Affiliates
	0.95%
	$120 million

	The Home Depot, Inc. and its Subsidiaries and Affiliates
	0.95%
	$240 million

For purposes of this Schedule 5 only, the terms “Affiliate” and “Subsidiary” shall have the meanings set out below.

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; where “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have corresponding meanings.  

“Subsidiary” means, at any time, with respect to any Person, any other Person, if at such time the first mentioned Person (i) owns, directly or indirectly, securities or other ownership interests in such other Person, having ordinary voting power to elect a majority of the board of directors or persons performing similar functions for such other Person, and (ii) directly or indirectly, through the operation of any agreement or otherwise, the ability to elect or cause the election of a majority of the board of directors or other persons performing similar functions for such other Person or otherwise exercise control over the management and policies of such other Person, and in either case will include any other Person in like relationship to a Subsidiary of such first mentioned Person.

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