Plastic2Oil Inc (PTOI)

[jobynimble]

Item 1.01 Entry into a Material Definitive Agreement.



On February 11, 2016, Plastic2Oil, Inc., a Nevada corporation (the “Company”), issued a promissory note in favor of Richard Heddle, the Company’s President, Chief Executive Officer and Chairman of the Company’s board of directors, to memorialize various advances, not to exceed $200,000 in total, which are expected to be made by Mr. Heddle to the Company from February 11, 2016 until March 31, 2016. The promissory note bears interest at the rate of 12% per annum. All principal and interest on the promissory note is due and payable in full by the Company on demand. The repayment of promissory note will be secured by assets of the Company. It is anticipated that the proceeds of these advances will be used for working capital purposes. The foregoing summary of the promissory note does not purport to be complete and is qualified in its entirety by reference to the actual promissory note, a copy of which is attached to this Report as Exhibit 10.1.



Item 1.02 Termination of a Material Definitive Agreement.



Termination of Recycling Center Lease



On January 15, 2016, the Company entered into a Surrender of Lease agreement which terminated its lease, dated December 1, 2010, between Avondale Store Limited Properties and JBI, (Canada) Inc. relating to the Company’s premises located at 1786 Allanport Road, Thorold, Canada. The effective date of the termination was October 31, 2015. The premises was the site of the Company’s Regional Recycling Center, which was part of a business line that was discontinued by the Company in 2013. The Company anticipates the termination will save approximately $1,161,360 in lease payments over the original life of the lease which had a term ending on December 1, 2030. The Company will remain liable for unpaid rent of approximately $49,180, covering the period from May 2016 to October 2016. The foregoing summary of the Surrender of Lease does not purport to be complete and is qualified in its entirety by reference to the actual Surrender of Lease, a copy of which is attached to this Report as Exhibit 10.2.



Expiration of EcoNavigation Agreements



As previously reported, the Company Plastic2Oil, Inc. (the “Company”) entered into four related agreements with EcoNavigation, LLC (“EcoNavigation”) in connection with the supply of plastic-to-oil, or P2O, processors by the Company to EcoNavigation. As of January 27, 2016, such agreements expired and were not renewed by the parties, however, the parties continue to pursue joint opportunities for the sale of processors to third parties.



Section 2 - Financial Information



Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.



The disclosure contained in Item 1.01 of this Report is incorporated herein by reference.



Section 9 - Financial Statements and Exhibits



Item 9.01 Financial Statements and Exhibits.



(d) Exhibits. The exhibits required by this item are listed on the Exhibit Index hereto.

http://www.sec.gov/Archives/edgar/data/1381105/000149315216007488/form8-k.htm