8-KMaterial Agreements

Bloom Energy Corp 8-K Report, Material Agreement (Dec 21, 2018)

Filed December 21, 2018For Securities:BE

Summary

Bloom Energy Corporation (BE) has announced a significant development with the receipt of its first purchase orders under a Preferred Distributor Agreement with SK Engineering & Construction Co. Ltd. (SK) of the Republic of Korea. This agreement, dated November 14, 2018, establishes SK as a distributor for Bloom Energy's solid oxide fuel cells, known as Energy Servers, and related equipment within South Korea. This filing marks a key milestone as it represents the initial commercialization of the partnership with SK. The agreement grants SK a right of first refusal for distribution in South Korea and provides Bloom Energy with a similar right for supplying generation equipment for fuel cell projects in the region. The contract has an initial term through December 31, 2021, with automatic renewal provisions, indicating a strategic, long-term commitment. Investors should note that this move signifies Bloom Energy's expansion into a new international market through a substantial partner. The terms of delivery and risk transfer have been defined, and while specific financial details are not disclosed in this 8-K, the initiation of purchase orders validates the agreement and signals potential future revenue streams from the South Korean market.

Key Highlights

  • 1Bloom Energy received its first purchase orders under a Preferred Distributor Agreement with SK Engineering & Construction Co. Ltd. (SK).
  • 2SK will distribute Bloom Energy's Energy Servers and Company-Required Ancillary Equipment in the Republic of Korea.
  • 3The agreement establishes reciprocal rights of first refusal for distribution and equipment supply within South Korea.
  • 4The agreement has an initial term expiring on December 31, 2021, with provisions for automatic renewal.
  • 5This marks a material definitive agreement and the commencement of commercial activity under the partnership.
  • 6Risk of loss and title transfer terms for the products have been clearly defined.
  • 7The filing indicates Bloom Energy's strategic expansion into the South Korean market.

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