Item 8.01 Other Events.
On April 16, 2020, GulfSlope Energy, Inc. (the "Company") entered into a
promissory note (the "Note") evidencing an unsecured $100,300 loan under the
Paycheck Protection Program (the "PPP Loan"). The Paycheck Protection Program
was established under the Coronavirus Aid, Relief, and Economic Security Act
(the "CARES Act") and is administered by the U.S. Small Business Administration.
The PPP Loan is being made through Zions Bancorporation, N.A. dba Amegy Bank
(the "Lender").
The PPP Loan is scheduled to mature on April 16, 2022 and has a 1.00% interest
rate. No payments are due on the PPP Loan until November 16, 2020, although
interest will continue to accrue during the deferment period. Beginning November
16, 2020, the Company will pay 18 equal monthly installments of principal and
interest in the amount necessary to fully amortize the PPP Loan through the
maturity date. Under the terms of the CARES Act, all or a portion of the PPP
Loan may be forgiven. Such forgiveness will be determined, subject to
limitations, based on the use of loan proceeds for payroll costs and mortgage
interest, rent or utility costs. No assurance is provided that the Company will
obtain forgiveness of the PPP Loan in whole or in part.
The Note contains customary events of default relating to, among other things,
payment defaults, breach of representations and warranties, or provisions of the
Note. The occurrence of an event of default may result in the repayment of all
amounts outstanding, collection of all amounts owing from the Company, and/or
filing suit and obtaining judgment against the Company. Additionally, the Note
is subject to the terms and conditions applicable to loans administered by the
U.S. Small Business Administration under the CARES Act.
The foregoing description of the Note is qualified in its entirety by reference
to the full text of the Note, which is filed as Exhibit 10.1 to this Current
Report and is incorporated by reference herein..
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
10.1 U.S. Small Business Administration Note dated as of April 16, 2020, by
GulfSlope Energy, Inc. in favor of Zions Bancorporation, N.A, dba Amegy
Bank as lender.
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