Form 8-K for GLOBAL ENERGY INC
4-Oct-2011
Entry into a Material Definitive Agreement, Financial Statements and Exhibits
Item 1.01 Entry into a Material Definitive Agreement.
Amendment to Material Agreement
On September 19, 2011, Global Energy Inc. (GEYI) entered into an Amended and Restated Business and Royalty Agreement (the "Business and Royalty Agreement") with Covanta Energy Corporation (CVA) regarding the AlphaKat Technology.
The restructuring of the Business and Royalty Agreement converts GEYI's right to invest capital in, and receive royalties on the sale of diesel from, CVA projects into a combination of
(i) the payment of a supplemental commission (this is in addition to the commissions being paid under Covanta's License Agreement),
(ii) a continued (albeit reduced) royalty on the sale of diesel and
(iii) a royalty on the sale of U.S. Government Renewable Identification Credits.
In addition, GEYI has been given the right to convert its right to receive royalties in all CVA projects developed following the exercise of the conversion option into a net cash flow position in all future projects.
The restructured agreement enables GEYI to use all of its capital to invest in the projects which it develops outside the U.S. for its own account. The agreement also includes an agreement by CVA to use commercial reasonable efforts to provide equipment lease financing for GEYI's initial projects outside the U.S., subject to standard underwriting terms, appropriate approvals and other conditions.
For further information, please see the Business and Royalty Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K, or contact GEYI.
The summary of the foregoing is qualified in its entirety by reference to the Business and Royalty Agreement. |
