UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 7, 2017

 

Cool Technologies, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

 

000-53443

 

75-3076597

(State or other jurisdiction

of incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

 

8875 Hidden River Parkway

Tampa, Florida

 

33637

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (813) 975-7467

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 
 

Section 1-Registrant’s Business and Operations

 

Item 1.01 Entry into a Material Definitive Agreement.

 

On November 7, 2017, Cool Technologies, Inc. (“CoolTech”, “the Company”) entered into an Agreement of Principal Terms with Jatropha, Inc. (“Jatropha”),

 

Pursuant to the Agreement, CoolTech will furnish Jatropha with one MG80 prototype retro-fitted onto a Ford F-350 truck within 60 business days of the execution of the Agreement. Jatropha will have the use of the prototype for a subsequent period of 60 days.

 

When the MG80 prototype meets the technical criteria established by Jatropha in cooperation with CoolTech, Jatropha will release the rest of the purchase order to CoolTech: 233 additional MG units. The Company has filed with the Securities and Exchange Commission an application for Confidential Treatment of the pricing of the various Mobile Generation (MG) units to be ordered by Jatropha.

 

The order terms and conditions will be 50% down at the time of order and 50% at the time of shipment, each payable with a bank letter of credit. Product delivery will be considered FOB (Freight on Board) at CoolTech's shipping dock.

 

The production schedule will be mutually agreed upon by CoolTech and Jatropha. It will start no later than April 2018 and continue until the order is completed.

 

Projected lead time to procure material is 10-12 weeks for the first 25 units and one month for every 25 additional units thereafter. Once the material has been received, CoolTech will begin to ship 5 units per week with additional time allotted for the procurement of trucks.

 

If the MG80 prototype does not meet the mutually agreed upon technical criteria, there will be a 30 day cure period. If the technical criteria still has not been met after the cure period, Jatropha will return the Ford F-350 truck with the installed MG80 prototype within 5 business days and CoolTech will refund the cost to Jatropha.

 

On November 13, 2017, Cool Technologies Inc. issued a press release relating to the Jatropha agreement. This press release is furnished as Exhibit 99.1 to this Form 8-K and incorporated by reference as set forth in full.

 

Section 3 – Securities and Trading Markets

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit 99.1:

 

Press Release dated November 13, 2017

 

 

 

Exhibit 10.1:

 

Agreement of Principal Terms, dated November 7, 2017, by and between the Company and Jatropha Inc.*

 

* A redacted version of this Exhibit is filed herewith. An un-redacted version of this Exhibit has been separately filed with the Securities and Exchange Commission pursuant to an application for confidential treatment. The confidential portions of the Exhibit have been omitted and are marked by an asterisk.  

 

 
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Cool Technologies, Inc.

 

 

 

 

Date: November 13, 2017

By

/s/ Timothy Hassett

 

 

 

Timothy Hassett

 

 

 

Chairman and CEO (Principal Executive Officer)

 

 

 

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EXHIBIT 10.1

 

AGREEMENT OF PRINCIPAL TERMS

 

This Agreement of Principal Terms is entered into this 7 th day of November 2017, between Jatropha, Inc. ("Jatropha"), a Unión corporation whose principal place of business is Quintana Roo, Mx. and Cool Technologies, Inc.("CoolTech"), a Nevada corporation having a principal place of business at 8875 Hidden River Parkway, Suite 300, Tampa, Florida 33637 (Jatropha and CoolTech are sometimes referred to individually as a "party" and jointly as "parties").

 

WHEREAS

 

(a) CoolTech is an innovator, developer and manufacturer, via outsource partners, of Thermal Technologies and Mobile Generation products. When the technologies are fitted onto Class 2 through Class 8 style vehicles, they can be utilized to produce mobile electrical power output equal to or better than that of tow behind generators or stationary backup generators. These technologies produce equivalent output power, as measured in kVA, at a 50% reduction in system weight when compared to tow behind generators. Power is drawn for the generator from the vehicle engine or any other onboard power source such as batteries, solar, CNG, LNG or fuel cell.

 

(b) Jatropha owns and operates A Unión Of Mexican Farmers

 

(c) Jatropha has entered into a full Non-Disclosure Agreement with CoolTech dated the 7th day of November 2017, ("Non-Disclosure Agreement") and is fully bound by the terms and conditions set forth in that Agreement.

 

(d) CoolTech wishes to enter into this Agreement and provide Jatropha with Mobile Power Generation (MG) using CoolTech's patented and proprietary technology.

 

(e) To help further discussions and co-operation, the parties have agreed to the following principal terms.

 

NOW, THEREFORE, the parties hereto agree, as follows:

 

1. Representations: Each of Jatropha and CoolTech hereby warrants and represents to the other, as follows:

 

(a) that it is a legal person validly existing in its jurisdiction of establishment;

 

(b) that it has the full power and authority to enter into this Agreement and perform its contractual obligations and that its representative who is signing this Agreement has been authorized to do so pursuant to a valid power of attorney or board of directors' resolution.

 

 
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2. CoolTech will furnish Jatropha with one (1) MG80 prototype fitted onto a Ford F-350 truck at a cost to Jatropha not to exceed $100,000 USD within 60 business days of the execution of this Agreement. Jatropha will have the use of the prototype for a period of 60 days ("Test Period").

 

(a) During the Test Period, CoolTech will provide technical assistance to Jatropha to test the prototype and to meet the technical criteria established by CoolTech in cooperation with Jatropha. Truck testing to take place _______, USA

 

(b) If the prototype MG80 meets the specified technical criteria (See MG Spec Sheet ) at the end of the Test Period, Jatropha shall release to Cool Tech, (233) additional MG units. The Purchase Order Agreement with CoolTech will be on a mutually agreeable form, and Cool Tech will initiate up-fitting manufacturing in St. Louis, MO, Colorado and or Pennsylvania or all three. Delivery: Based upon lead time of material and mix of product, Cool Technologies will commence to ship product as follows:

 

 

· Projected lead time to procure material is 10/12 weeks for the first 25 units and then going forward 25 more units per month.

 

 

 

 

· Once material is in house, CoolTech will begin to ship 5 units per week of MG’s with additional, reasonable time allotted for truck procurement.

 

The Purchase Order Agreement shall conform to the following: (i) 233 Mobile Generation units, to a mutually agreed upon production schedule by Cool Tech and Jatropha, to start no later than April of 2018 and continue till the order is fulfilled in whole (ii) The price per unit will be; [*](MG30), [*](MG55), [*](MG80) and [*](MG125) respectively with a minimum build to order of 25 of the same model number MG. The prices shown are for the MG kit and do not include the F-350 trucks to be paid for by Jatropha. The order terms and conditions will be 50% down at time of order and 50% at time of shipment, each payable with a bank letter of credit. Product delivery will be considered FOB at the CoolTech’s shipping dock.

 

(c) If the prototype MG80 does not meet the specified technical criteria (see2(a)) at the end of the Test Period, there will be a 30 day cure period. If after that period, technical criteria has not been met, Jatropha shall return the Ford F-350 truck (MG80 prototype), within 5 business days from the 60 th test day or upon demand by Cool Tech and all confidential technology, data and know-how shall be either destroyed or kept confidential in accordance with the terms of the Non-Disclosure Agreement and CoolTech will refund cost of $100,000 USD back to Jatropha.

 

3. During the period that CoolTech is working with Jatropha and providing it with trade secrets, technical and other assistance for the development of Mobile Generation systems, Jatropha, its officers, directors and employees shall not, directly or indirectly, work with any competitor of CoolTech.

 

4. The Governing law for this Agreement of Principal Terms shall be that of the State of Nevada.

 

[*] Indicates confidential portion has been omitted pursuant to a request for confidential treatment and has been filed separately with the Securities and exchange Commission.

 

 
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Signed on behalf of Jatropha:

Signed on behalf of CoolTech:

 

 

/s/ Pedro Ramos

/s/ Timothy Hassett

 

 

Timothy J. Hassett

 

Title: President

Title: Chief Executive Officer

 

 

 

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EXHIBIT 99.1  

 

Cool Technologies Receives Purchase Commitment for 234 Mobile Generation Systems

 

(Tampa, FL: November 13, 2017) Cool Technologies, Inc. (OTCQB:WARM), an innovator in efficient mobile power generation and thermal dispersion technologies, announced today that it has received a purchase commitment for 234 Mobile Generation (MG) systems from the National Union of Producers of Jatropha in Mexico (Jatropha).

 

Jatropha has established a center for processing oil from Jatropha seeds for biofuel production. Through their union of producers, Jatropha plans to introduce the MG and promote the product to their well-established supplier network.

 

With an MG, farmers can tow and power a variety of machinery and equipment with a single truck. The systems weigh 50% less than tow-behind diesel generators which enable the trucks to easily reach distant fields over rough, unpaved roads.

 

“We intend to provide MG 30, 55, and 80 kVA systems installed on Class 3 and 4 trucks to our members,” said Pedro Ramos, President of Jatropha. “Utilizing efficient mobile power to pump, harvest and process mechanically will vastly improve our workers’ capabilities and transform their lives and communities. In addition, the MG’s lower acquisition, operating and maintenance costs will help them compete in a global market.”

 

The purchase commitment follows common industry best practices by stipulating that CoolTech will furnish Jatropha with an MG80 retro-fitted onto a Ford F-350 truck within 60 business days. To ensure the system is optimized to meet Jatropha’s needs and build the remaining 233 units, CoolTech set the terms of the agreement to allow both teams to gather data and provide performance feedback another 30 to 60 days. Upon the satisfactory conclusion of this period, Jatropha will release the balance of the order and production will start no later than the second quarter of 2018. Payment terms require 50% down and 50% at time of shipment, FOB (Free on Board) from Cool Technologies’ dock.

 

“Our team of engineers in Pittsburgh and Colorado Springs have been diligently working toward this milestone since our demonstration at Craftsmen Industries last April, “ said Cool Technologies’ CEO, Tim Hassett. “Full production system engineering and testing, including design failure mode effect analysis, have been completed to ensure the technology meets or exceeds the standards set for class 3 Ford F-350s to Class 7 International Durastars® or Workstars®.”

 

Mr. Hassett added, “The value range of this revenue stream is expected to be between $17,000,000 and $22,000,000 US. We believe this represents a strong validation of our commercialization plan which we anticipate will drive a healthy backlog of domestic and international orders heading into 2018.”

 

About Cool Technologies, Inc.

 

Cool Technologies is an intellectual property and product development company commercializing patented thermal dispersion technology across multiple platforms. The Company has additional patents-pending for various OEM applications of its proprietary heat removal technologies. Tested and validated by two third parties, ESSCO Pumps and Nidec Corporation, the Company’s cooling system eliminates the need for costly modifications while increasing power output of pumps, fans, compressors, batteries, motors, generators and bearings. 

 

Safe Harbor Statement.

 

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on plans and expectations of management and are subject to uncertainties and risks that could affect the company's plans and expectations, as well as results of operations and financial condition. A listing of risk factors that may affect the company's business prospects and cause results to differ from those described in the forward-looking statements can be found in company reports and documents filed with the Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

For more information, read the blog at cooltechnologiesinc.com or contact ir@cooltechnologiesinc.com.