Note Extension Agreement between Ecosphere and Robert Baratta
Ecosphere and Robert Baratta agreed to extend the repayment terms of a $772,870 promissory note. Baratta received a partial payment of $100,000 in principal and $15,510 in interest, with the remaining $672,870 to be paid in equal quarterly installments over one year starting October 13, 2008. The note accrues interest at the Northern Trust Company's prime rate plus 3%, and a $500 penalty applies for every 10 days of default. Baratta received a $12,500 cash fee and $12,500 in company stock for the extension. If Ecosphere raises significant financing, the note must be repaid in full from those proceeds.
Exhibit 10.7
“Summary Sheet” of Note Extension
with Robert Baratta
On July 14, 2008, the Board of Directors authorized extending the $772,870 promissory note (the “Note”) held by Mr. Robert Baratta. Mr. Baratta was paid $100,000 in principal and $15,510 in interest and the remaining $672,870 of principal owed will be paid in equal quarterly increments over one year beginning October 13, 2008. The Note shall accrue interest at the prime rate of Northern Trust Company plus 3% per annum and a penalty of $500 for each 10 days in which the Note is in default. In consideration for the extension, Mr. Baratta received an extension fee of $12,500 in cash and $12,500 in Ecosphere common stock. In the event that Ecosphere raises net proceeds in a financing of at least five times the then outstanding principal balance of the Note, the outstanding principal balance will be paid in full from the proceeds of such financing.
