# EDGAR Filing Document

**Accession Number:** 0000088000
**File Stem:** 0000950170-23-001280
**Filing Date:** 2023-1
**Character Count:** 36714
**Document Hash:** 1144aca7742b4915782c6fc1ea539f80
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-001280.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0000950170-23-001280

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230123

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230127

**DATE AS OF CHANGE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Scott's Liquid Gold - Inc.
- **CENTRAL INDEX KEY:** 0000088000
- **STANDARD INDUSTRIAL CLASSIFICATION:** PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844]
- **IRS NUMBER:** 840920811
- **STATE OF INCORPORATION:** CO
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13458
- **FILM NUMBER:** 23559573

**BUSINESS ADDRESS:**
- **STREET 1:** 8400 E. CRESCENT PARKWAY  #450
- **STREET 2:** SUITE 450
- **CITY:** GREENWOOD VILLAGE
- **STATE:** CO
- **ZIP:** 80111
- **BUSINESS PHONE:** 3033734860

**MAIL ADDRESS:**
- **STREET 1:** 8400 E. CRESCENT PARKWAY  #450
- **STREET 2:** SUITE 450
- **CITY:** GREENWOOD VILLAGE
- **STATE:** CO
- **ZIP:** 80111

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SCOTTS LIQUID GOLD INC
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

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

**Date of Report (Date of earliest event reported):** January 23, 2023<br>

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SCOTT'S LIQUID GOLD-INC.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Colorado | 001-13458 | 84-0920811 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 8400 E. Crescent Parkway<br>Suite 450 |  |  |
| Greenwood Village**,** Colorado |  | 80111 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** (303) 373-4860<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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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))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| None | N/A | N/A |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 1.01 Entry into a Material Definitive Agreement.**

Amendment to UMB Loan and Security Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 23, 2023, Scott's Liquid Gold-Inc., a Colorado corporation (the "Company"), entered into the Consent and Seventh Amendment to Loan and Security Agreement (the "Seventh Amendment"), amending its Loan and Security Agreement with UMB Bank, N.A., dated July 1, 2020 (as previously amended, the "UMB Agreement"). The Seventh Amendment consents to the sale of Scott's Liquid Gold Wood Care and Scott's Liquid Gold Floor Restore assets (described below), and updates defined terms and financial covenants under the UMB Agreement. The foregoing description of the Amendment is a summary only and is qualified in its entirety by reference to the terms of the Seventh Amendment, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

Amendment to La Plata Loan Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 25, 2023, the Company entered into the First Amendment to La Plata Capital Loan Agreement (the "First Amendment"), amending its Loan Agreement with La Plata Capital, LLC, dated November 9, 2021 (the "La Plata Agreement"). The First Amendment states interest-only payments are required on a monthly basis through March 31, 2023. The First Amendment revises the timing of principal and interest payments and provides updated financial covenants. The foregoing description of the First Amendment is a summary only and is qualified in its entirety by reference to the terms of the Amendment, which is attached hereto as Exhibit 10.2 and incorporated herein by reference.

Sale of Scott's Liquid Gold Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 23, 2023, the Company and SLG Chemicals, Inc., a Colorado corporation, and wholly owned subsidiary of the Company (collectively with the Company, the "Seller"), entered into an Asset Purchase Agreement (the "Purchase Agreement") with Nakoma Products, LLC, an Illinois corporation ("Buyer"), pursuant to which the Seller agreed to sell to Buyer all of the Seller's right, title and interest in and to certain assets of the Scott's Liquid Gold Wood Care and Scott's Liquid Gold Floor Restore product lines (the "Business"), together with certain obligations and liabilities relating to the Business. The transactions contemplated by the Purchase Agreement were consummated on January 23, 2023 (the "Asset Sale"). The closing consideration paid to the Seller for the Business was $1,900,000, subject to adjustment for inventory value. Additionally, the Buyer is required to pay the Seller quarterly royalty payments on the gross sales of the Business until January 23, 2025.

**Item 2.01. Completion of Acquisition or Disposition of Assets.**

The description of the Asset Sale contained in Item 1.01 above is hereby incorporated by reference.

**Item 7.01. Regulation FD Disclosure.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 27, 2023, the Company issued a press release announcing the Asset Sale. A copy of the press release is furnished as Exhibit 99.1 to this Current Report. The information under this Item 7.01 and contained in Exhibit 99.1 will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor will such information or exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as is expressly set forth by specific reference in such a filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits: The following exhibits are filed as part of this report:

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| | |
|:---|:---|
| &nbsp;&nbsp;**Exhibit No.** | &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;10.1 | &nbsp;&nbsp;[<u>Consent and Seventh Amendment to Loan and Security Agreement, Dated January 23, 2023</u>](slgd-ex10_1.htm) |
| &nbsp;&nbsp;10.2 | &nbsp;&nbsp;[<u>First Amendment to La Plata Capital Loan Agreement, Dated January 25, 2023</u>](slgd-ex10_2.htm) |
| &nbsp;&nbsp;99.1 | &nbsp;&nbsp;[<u>Scott's Liquid Gold-Inc. press release, dated January 27, 2023.</u>](slgd-ex99_1.htm) |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;Cover Page Interactive Data File |

---

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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 hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | SCOTT'S LIQUID GOLD-INC. |
| Date: | January 27, 2023 | By:  | /s/ David M. Arndt |
|  |  |  | **David M. Arndt<br>Chief Financial Officer** |

---

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## Exhibit 10.1

**Exhibit 10.1**

**<u>CONSENT AND SEVENTH AMENDMENT TO <br>LOAN AND SECURITY AGREEMENT</u>**

**THIS CONSENT AND SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT** (this "<u>Amendment</u>") dated as of January 23, 2023, is entered into by **umb bank, n.a.** (together with its successors and assigns, "<u>Lender</u>"), **SCOTT'S LIQUID GOLD-INC.**, a Colorado corporation ("**SLG**"), **SLG CHEMICALS, INC.**, a Colorado corporation ("**<u>Chemicals</u>**"), and **NEOTERIC COSMETICS, INC.**, a Colorado corporation ("<u>NC</u>", and together with SLG and Chemicals, collectively, "<u>Borrowers</u>" and each, a "<u>Borrower</u>") and each of the undersigned guarantors (collectively "<u>Guarantors</u>" and together with Borrowers, "<u>Obligors</u>"), with reference to the following facts:

<u>RECITALS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Lender and Borrowers are parties to a Loan and Security Agreement dated as of July 1, 2020 (as amended, supplemented, replaced, restated or otherwise modified, the "<u>Loan Agreement</u>"), pursuant to which Lender has provided certain credit facilities to Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Borrowers have requested that Lender consent to the entry by Chemicals and SLG into the Asset Purchase Agreement, dated as of January 23, 2023 (the "<u>SLG APA</u>"), with Nakoma Products LLC ("<u>SLG Buyer</u>") and the sale of the Purchased Assets (as defined therein) (the "<u>SLG Assets</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Lender is willing to provide such accommodations to the Borrowers on the terms and conditions set forth below.

NOW, THEREFORE, the parties hereby agree as follows:

1.<u>Defined Terms</u>. Any and all initially capitalized terms used in this Amendment (including, without limitation, in the Recitals to this Amendment) without definition shall have the respective meanings assigned thereto in the Loan Agreement. The following defined terms in Section 1.1 of the Loan Agreement are hereby added or amended and restated in their entirety, as appropriate, to read as follows:

"'<u>Borrowing Base</u>' means, as of any date of determination, an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 85% (or such lesser percentage as Lender may in its Permitted Discretion determine from time to time) of the Net Amount of Eligible Accounts; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the least of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 50% minus the Inventory Advance Reduction Amount (or such lesser percentage as Lender may in its Permitted Discretion determine from time to time) of the Net Amount of Eligible Inventory minus the SLG Sale Reserve;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 85% minus the Inventory Advance Reduction Amount (or such lesser percentage as Lender may in its Permitted Discretion determine from time to time) of the Net Orderly Liquidation Value of Eligible Inventory minus the SLG Sale Reserve; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) $250,000, minus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sum of all other Reserves, including, without limitation, the Prell Sale Reserve.

Without limiting Lender's Permitted Discretion to implement other Reserves, Lender shall have the option to institute Reserves with respect to Eligible Accounts in the event that dilution exceeds 5.00% such that the advance rate on such account shall be reduced by 1.00% for each percentage of dilution in excess of 5.00%.

'<u>Prell Sale Reserve</u>" means $328,000 plus the amount of any Prell Royalty Payments.

'<u>Revolving Facility Limit</u>' means (a) $500,000 through the earlier to occur of (i) the receipt by Borrowers of a tax refund in an amount not less than $200,000, or (ii) February 23, 2023, and (b) $250,000 thereafter.

'<u>Total Facility Limit</u>' means the Revolving Facility Limit.

'<u>SLG APA</u>' means the Asset Purchase Agreement, dated as of January 23, 2023, among Chemicals, SLG and Nakoma Products LLC.

'<u>SLG Royalty Payments</u>' means all Royalty Payments (as defined in the SLG APA).

'<u>SLG Sale Reserve</u>' means $1,405,000 plus the amount of any SLG Royalty Payments."

2.<u>Financial Covenants</u>. Effective as of October 31, 2022, <u>Section 9.1(c)</u> of the Loan Agreement is hereby amended to read in full as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;"**<u>Test Period</u>** | &nbsp;&nbsp;**<u>Cumulative Cash Flow After Debt Service</u>** |
| &nbsp;&nbsp;July 1, 2022 through January 31, 2023  | &nbsp;&nbsp;-$800000 |
| &nbsp;&nbsp;July 1, 2022 through February 28, 2023  | &nbsp;&nbsp;-$750000 |
| &nbsp;&nbsp;July 1, 2022 through March 31, 2023  | &nbsp;&nbsp;-$750000 |
| &nbsp;&nbsp;July 1, 2022 through April 30, 2023  | &nbsp;&nbsp;-$750000 |
| &nbsp;&nbsp;July 1, 2022 through May 31, 2023  | &nbsp;&nbsp;-$750000 |
| &nbsp;&nbsp;July 1, 2022 through June 30, 2023  | &nbsp;&nbsp;-$750,000" |

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3.<u>Consent to Sale</u>. Lender is willing to consent to sale of the SLG Assets on the condition that (a) 100% of the net proceeds from the sale of the SLG Assets (including, without limitation, all SLG Royalty Payments) (the "<u>SLG Net Proceeds</u>") are paid to Lender, (b) the proceeds are used to pay down the Revolving Loans (which amounts may be readvanced on the terms and conditions set forth in the Loan Agreement, as amended hereby).

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4.<u>Third Party Deliverables</u>. Upon Lender's receipt of a countersigned copy of this Amendment, Lender will execute and deliver the attached Consent to Sale Free and Clear of Liens in favor of Buyer.

5.<u>Renewal and Extension of Security Interests and Liens</u>. Each Obligor hereby (a) renews and affirms the Liens created and granted in the Loan Documents, and (b) agrees that this Amendment shall in no manner affect or impair the Liens securing the Obligations, and that such Liens shall not in any manner be waived, the purposes of this Amendment being to modify the Loan Agreement as herein provided, and to carry forward all Liens securing the same, which are acknowledged by such Obligor to be valid and subsisting.

6.<u>Integration</u>. This Amendment, and the documents referred to herein constitute the entire agreement of the parties in connection with the subject matter hereof and cannot be changed or terminated orally. All prior agreements, understandings, representations, warranties and negotiations regarding the subject matter hereof, if any, are merged into this Amendment.

7.<u>Counterparts</u>. This Amendment may be executed in multiple counterparts, each of which when so executed and delivered shall be deemed an original, and all of which, taken together, shall constitute but one and the same agreement. The parties agree that the electronic signature of a party to this Amendment shall be as valid as an original manually executed signature of such party and shall be effective to bind such party to this Agreement.

8.<u>Release</u>. Each of the Obligors (for purposes of this Section, each a "<u>Releasing Party</u>" and collectively, the "<u>Releasing Parties</u>") releases, acquits and forever discharges Lender, UMB Financial Corporation and their respective past, present and future directors, officers, employees, agents, attorneys, affiliates, successors, administrators and assigns (collectively, the "<u>Released Parties</u>") of and from any and all claims, actions, causes of action, demands, rights, damages, costs, loss of service, expenses and compensation whatsoever, heretofore or hereafter arising from any events or occurrences, or anything done, omitted to be done, or allowed to be done by any of the Released Parties on or before the date of execution of this Amendment, WHICH DO OR MAY EXIST, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, FORESEEN OR UNFORESEEN (collectively, the "<u>Released Matters</u>"). In furtherance of this general release, Releasing Parties each acknowledge and waive the benefits of California Civil Code Section 1542 (and all similar ordinances and statutory, regulatory, or judicially created laws or rules of any other jurisdiction), which provides:

"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY."

9.<u>Acknowledgment of Guarantor</u>. Each Guarantor hereby acknowledges and agrees to the terms and conditions of this Amendment, acknowledges and reaffirms its/his/her obligations owing to Lender under its/his/her Guaranty, and each other Loan Document to which such Guarantor is a party, and agrees that the Guaranty and other Loan Documents are and shall remain in full force and effect. Although each Guarantor has been informed of the matters set forth herein and has acknowledged and agreed to the same, each Guarantor understands and acknowledges that Lender has no obligation to inform Guarantors of such matters in the future or to seek any Guarantor's acknowledgement or agreement to future amendments, and nothing herein shall create such a duty.

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10.<u>Costs and Expenses</u>. Borrowers agree to pay upon demand all of Lender's expenses, including without limitation reasonable, reasonably documented attorneys' fees, charges and disbursements of outside counsel for Lender, incurred in connection with the preparation, negotiation, review, analysis, administration, enforcement or modification of, and collection and other litigation relating to, or arising out of the Loan Agreement or any other Loan Document, or any amounts owing thereunder. Lender may pay someone else to help collect such amounts and to enforce the Loan Agreement or any other Loan Document, and Borrowers will pay that amount. This includes, subject to any limits under applicable law, reasonable, reasonably documented Lender's attorneys' fees and legal expenses, whether or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), foreclosure costs, appeals, and any anticipated post-judgment collection services. Borrowers will pay any court costs, in addition to all other sums provided by law.

11.**<u>Governing Law</u>. This Amendment, the interpretation and construction of this Amendment and any provision of this Amendment and of any issue relating to the transactions contemplated by this Amendment shall be governed by the laws of the State of CALIFORNIA, not including conflicts of law rules.** 

12.**<u>Waiver of Jury Trial</u>. To the fullest extent permitted by applicable law, the parties hereto each hereby waives the right to trial by jury in any action, suit, counterclaim, or proceeding arising out of or related to this Amendment.**

13.<u>Further Assurances</u>. Borrowers agree to execute and deliver such other agreements, documents and instruments and take such other actions as Lender may reasonably request in connection with the transactions contemplated by this Amendment.

14.<u>ENTIRE AGREEMENT</u>. THIS AMENDMENT, THE LOAN AGREEMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED AND DELIVERED IN CONNECTION WITH AND PURSUANT TO THIS AMENDMENT AND THE LOAN AGREEMENT REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Signature Page Follows]

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IN WITNESS WHEREOF, Obligors and Lender have executed this Amendment by their respective duly authorized officers as of the date first above written.

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| |
|:---|
| &nbsp;&nbsp;**LENDER: <br>UMB BANK, N.A.**<br>By: <u>/s/ John D. Watkins</u><br>Name: John D. Watkins<br>Title: Senior Vice President |
| &nbsp;&nbsp;**BORROWERS:<br>SCOTT'S LIQUID GOLD-INC.**<br>By: <u>/s/ David Arndt</u><br>Name: David Arndt<br>Title: Chief Financial Officer |
| &nbsp;&nbsp;**SLG CHEMICALS, INC**.<br>By: <u>/s/ David Arndt</u><br>Name: David Arndt<br>Title: Chief Financial Officer |
| &nbsp;&nbsp;**NEOTERIC COSMETICS, INC.**<br>By: <u>/s/ David Arndt</u><br>Name: David Arndt<br>Title: Chief Financial Officer |

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&nbsp;&nbsp;**GUARANTORS:<br>SLG TOUCH-A-LITE, INC.**<br>By: <u>/s/ David Arndt</u><br>Name: David Arndt<br>Title: Chief Financial Officer<br>

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## Exhibit 10.2

**Exhibit 10.2**

**FIRST AMENDMENT TO LA PLATA CAPITAL LOAN AGREEMENT**

This FIRST AMENDMENT TO LA PLATA CAPITAL LOAN AGREEMENT (this "Amendment") dated as of January 25, 2023 by and among **LA PLATA CAPITAL LLC**, a Delaware limited liability company ("<u>Lender</u>"), **SCOTT'S LIQUID GOLD-INC.,** a Colorado corporation ("<u>Borrower</u>"). Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Loan Agreement.

**<u>THE LOAN</u>**

A. Borrower entered into a Loan Agreement dated November 9, 2021 with Lender (the "<u>Loan Agreement</u>").

B. Pursuant to the Loan Agreement, Borrower executed that certain Promissory Note in favor of Lender, dated as of November 9, 2021, in the original principal amount of Two Million and 00/100 Dollars ($2,000,000.00) (the "<u>Note</u>").

C. The Note is secured by a Security Agreement for the benefit of Lender dated November 9, 2021 granting Lender a security interest in the Collateral (the "<u>Security Agreement</u>"), which is perfected by a UCC-1 Financing Statement filed with the Colorado Secretary of State.

D. The Loan Agreement, Note, Security Agreement and all documents executed in connection therewith, together with all modifications, amendments, and replacements thereto, are hereinafter collectively referred to as the "<u>Loan Documents</u>," which memorialize the "<u>Loan</u>."

E. The Parties desire to amend the Loan Agreement to modify the Payments and the Covenant tests and as applicable, the other Loan Documents, pursuant to the terms contained in this Amendment.

**<u>AMENDMENT</u>**

**NOW, THEREFORE,** for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. Section 2.5. of the Loan Agreement is hereby deleted and replaced in its entirety with the following:

2.5. **Payments.** On the first day of each month beginning on January 1, 2022, Borrower shall make monthly payments of accrued interest only through March 31, 2023. Commencing April 1, 2023, Borrower shall make monthly payments of Thirty Thousand and 00/100 Dollars ($30,000.00) in unpaid principal plus accrued and unpaid interest. All unpaid principal, accrued interest, fees and costs shall be fully due and payable on the Maturity Date.

2. Section 5.10. of the Loan Agreement is hereby deleted and replaced in its entirety with the following:

5.10. **Average Total Funded Debt to EBITDA**. Borrower shall maintain an Average Total Funded Debt to EBITDA Ratio of no more than 4.0 to 1.0, measured on a twelve month trailing basis for each fiscal quarter beginning with the fiscal quarter ending March 31, 2023, and for each fiscal quarter period ending thereafter until the Indebtedness is indefeasibly paid in full, in each case calculated as of the end of such fiscal quarter.

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3. Section 5.11. of the Loan Agreement is hereby deleted and replaced in its entirety with the following:

5.11. **Fixed Charge Coverage Ratio**. Borrower shall maintain a Fixed Charge Coverage Ratio equal to or greater than 1.20:1.00, measured on a six month trailing basis for each month beginning with the month end of March 31, 2023 and monthly thereafter until the Indebtedness is indefeasibly paid in full, in each case calculated as of the end of such month.

4. <u>Amendment Fee</u>. As consideration for this Amendment, Borrower shall pay Lender an amendment fee in the amount of One Thousand and 00/100ths Dollars ($1,000.00). The amounts described in this paragraph shall be in addition to, and not in lieu of, the interest, fees and other charges owing under the Loan Documents.

5. <u>Ratification of Loan Documents and Collateral</u>. The Loan Documents are ratified and affirmed by the Borrower, and shall remain in full force and effect, as modified by this Amendment. Any property or rights to or interests in property granted as security in the Loan Documents shall remain as security for the Loan and the obligations of Borrowers in the Loan Documents.

6. <u>Conditions Precedent</u>. Notwithstanding anything to the contrary set forth herein, the terms and provisions of this Amendment shall not be effective unless and until all of the following shall have occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. No Event of Default or Default shall have occurred and be continuing on the date hereof or would exist after giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Borrowers shall have paid all other accrued and unpaid fees and all costs and expenses to the extent then due and payable pursuant to the Loan Agreement.

7. <u>Representations, Warranties and Covenants</u>. The Borrower represents, warrants and covenants to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. No Default or Event of Default under any of the Loan Documents as modified herein, after giving effect to this Amendment, has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Each and all representations and warranties of the Borrower in the Loan Documents are true and correct in all material respects (without duplication as to any materiality modifiers, qualifications or limitations set forth therein) on the date hereof (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date, without duplication as to any materiality modifiers, qualifications or limitations set forth therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Borrower does not have any claims, counterclaims, defenses or set-offs with respect to the Loan or the Loan Documents as modified herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Loan Documents as modified herein are the legal, valid, and binding obligation of the Borrower, enforceable against the Borrower in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The Borrower validly exists as a Colorado corporation duly organized, in good standing under the laws of the state or jurisdiction of its incorporation and has the requisite power and authority to execute and deliver this Amendment and to perform the Loan Agreement as modified herein. The execution and delivery of this Amendment and the performance of the Loan Agreement as modified

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herein have been duly authorized by all requisite action by or on behalf of the Borrower. This Amendment has been duly executed and delivered by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. As of the effective date of this Amendment, the principal balance of the Original Loan is Nine Hundred Seventy Thousand and 00/100ths Dollars ($970,000.00).

8. <u>Governing Law</u>. The Loan Documents, including this Amendment, are governed by the laws of the State of Colorado.

9. <u>No Novation</u>. Nothing in this Amendment shall be construed to be or constitute any novation of Borrower's obligations to Lender. No provision herein or representation made in discussions related to this Amendment, shall be deemed a waiver by Lender, either express or implied, of any breach of any other covenant or term in the Loan Documents or any other or future non-compliance, all legal and equitable rights and remedies being hereby reserved by Lender.

10. <u>Claims Release</u>. The Borrower hereby fully, finally and forever release, waive, and discharge the Lender and its successors, assigns, directors, officers, employees, agents and representatives from any and all actions, causes of action, claims, debts, demands, liabilities, obligations and suits of whatever kind or nature, in law or in equity, that the Borrower, or any of them, have or in the future may have, whether known or unknown, arising from events prior to the date hereof in respect to the Loan and the Loan Documents.

11. <u>Headings of Sections</u>. The headings of sections in this Amendment are for convenience of reference only, and shall not govern the interpretation of any of the provisions of this Amendment.

12. <u>Counterpart Execution</u>. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument. Delivery of an electronically executed counterpart of this Amendment shall be equally as effective as delivery of an original executed counterpart of this Amendment.

13. <u>Reaffirmation</u>. In all other respects the terms and conditions of the Loan Agreement and other Loan Documents remain unchanged and in full force and effect.

IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AMENDMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AMENDMENT ONLY BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE ALSO APPLIES TO ANY OTHER CREDIT AGREEMENTS, (EXCEPT CONSUMER LOANS OR OTHER EXEMPT TRANSACTIONS) NOW IN EFFECT BETWEEN YOU AND THIS LENDER.

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**[SIGNATURE PAGE FOLLOWS]**

IN WITNESS WHEREOF, Lender and Borrower have caused this Amendment to be duly executed effective as of the date set forth above.

**<u>BORROWER</u>:** 

**SCOTT'S LIQUID GOLD-INC.** 

<u>/s/ Tisha Pedrazzini</u> 

Name: Tisha Pedrazzini

Its: President

**<u>LENDER</u>:** 

**LA PLATA CAPITAL LLC** 

<u>/s/ Geoffrey M. Long</u> 

By: Geoffrey M. Long

Its: President

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## Exhibit 99.1

![img164275887_0.jpg](img164275887_0.jpg)

**Exhibit 99.1**<br>

Corporate & financial news release

**SCOTT'S LIQUID GOLD-INC. ANNOUNCES SALE OF WOOD AND FLOOR CARE BRANDS AND CONTINUED PURSUIT OF STRATEGIC ALTERNATIVES**

GREENWOOD VILLAGE, COLORADO – January 27, 2023 - Scott's Liquid Gold-Inc. ("The Company") (OTC: SLGD) today announced the sale of its wood and floor care lines, which is part of its ongoing process to explore and pursue a variety of strategic alternatives focused on maximizing shareholder value.

The Company received gross proceeds of $1.9 million for the sale of its wood and floor care brands and will also receive a royalty on sales of the products for the next two years. The proceeds of the sale were used to reduce net debt.

The Company will continue to consider a wide range of options, including one or more of the following: the sale of additional brands; a sale, merger, or other strategic transaction involving the entire company; acquisitions of other brands or companies; issuance of additional debt or equity; and continuing to operate as a public, independent company.

The Company's remaining brands include Alpha Skin Care, Biz Stain Fighter, Kids N Pets and Messy Pet, Denorex shampoo, Neoteric Diabetic Skin care, and Zincon Shampoo.

There can be no assurance that this process will result in any particular strategic alternative, or any assurance as to its outcome or timing. The Company has not set a timetable for completion of this process and does not intend to disclose developments related to the process unless and until the Board determines that further disclosure is appropriate or required.

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![img164275887_0.jpg](img164275887_0.jpg)

**Note Regarding Forward-Looking Statements** 

This news release may contain "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "assumptions," "target," "guidance," "strategy," "outlook," "plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe", "potential," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology.

Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the Company's subsequent Quarterly Reports on Form 10-Q and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent filings with the Securities and Exchange Commission.

**About Scott's Liquid Gold-Inc.** 

Scott's Liquid Gold-Inc. exists to positively impact consumers' lives in the markets we serve while creating shareholder value. We develop, market, and sell high-quality, high-value household and health and beauty care products nationally and internationally to mass merchandisers, drugstores, supermarkets, hardware stores, e-commerce retailers, other retail outlets, and to wholesale distributors.

**Investor Relations Contact:**

David Arndt

Chief Financial Officer

303.576.6027 ------