Document:

Ex 10.1 POTASH - Credit Facility Agreement for filing with 8-K (W0087055).DOC

CREDIT FACILITY AGREEMENT

THIS  dated as of the ____ day of March, 2011.

BETWEEN:

_________________________, having an address for notices at ________________________________________

(the "Lender")

AND:

POTASH AMERICA, INC., having an office for notices at 8th Floor – 200 South Virginia Street, Reno, Nevada, 89501

 (the "Borrower")

WHEREAS:

The Lender has agreed to provide a line of credit to the Borrower in the amount of up to US$200,000;

NOW THEREFORE in consideration of the premises and the respective covenants, agreements, representations, warranties and indemnities of the parties herein contained and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged) the parties hereto covenant and agree as follows:

1.

INTERPRETATION

1.1

Definitions.  For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:

(a)

“Business Day” means any day other than a Saturday, Sunday, public holiday under the laws of Nevada or other day on which banking institutions are authorized or obligated to close in Nevada;

(b)

“Effective Date” means the date of this Agreement;

(c)

“Event of Default” has the meaning set out in Section ;

(d)

“Outstanding Amount” means, in respect of the Credit Facility, on any day, an amount calculated and expressed in U.S. dollars equal to the aggregate principal amount of all Advances made by the Lender under the Credit Facility;

2.

THE CREDIT FACILITY 

2.1

Credit Facility.  The Lender shall make available to the Borrower in accordance with and subject to the terms and conditions of this Agreement a credit facility in the principal amount of up to US$200,000 (the “Credit Facility”).

2.2

Advances.  On the terms and conditions set forth herein, the Lender, from time to time, agrees to make advances to the Borrower (the “Advances”).  

2.3

Notice of Advance.  Each Advance shall be made by the Lender within three Business Days after receipt of a notice from the Borrower in the form set out in  attached hereto, with appropriate insertions (the “Advance Notice”), which shall specify certain information including:

(a)

the date of the Advance Notice;

(b)

the aggregate amount of such Advance; and

(c)

the Outstanding Amount having given effect to such Advance.

2.4

Lender to Make Advance.  Upon receipt of the Advance Notice, the Lender shall pay such Advance by wire transfer to an account in the name of the Borrower as provided by the Borrower.  In addition, upon receipt of the Advance Notice and provided that the Lender agrees with the information set out thereon, the Lender shall promptly sign the Advance Notice, thereby acknowledging receipt of same, and fax back to the Borrower in accordance with the notice provisions set out herein.

2.5

Use of Proceeds.  The Borrower shall use all Advances to fund working capital and general corporate activities.

3.

REPAYMENT

3.1

Payments.  The Borrower shall pay the Outstanding Amount to the Lender on demand, without set-off, counterclaim or deduction, unless, in the case of set-off, such set-off is specifically acknowledged in writing by the Lender.

3.2

Repayment of the Loan.  The Borrower may repay the Outstanding Amount and accrued interest at any time without penalty.  The repayment of the Outstanding Amount will not extinguish the requirement to pay any accrued interest.

4.

INTEREST

4.1

Interest Payments.  The Outstanding Amount shall bear interest at the rate of five percent (5%) per annum.  The Borrower shall pay to the Lender the entire amount of accrued and unpaid interest on demand.

- 2 -

5.

REPRESENTATIONS AND WARRANTIES

5.1

Borrower’s Representations.  The Borrower represents and warrants that:

(a)

The Borrower is a corporation duly organized and existing pursuant to the laws of the Nevada without limit as to the duration of its existence, the Borrower has corporate powers and adequate authority, rights and franchises to own its property and to carry on its business as now conducted, and is duly qualified and in good standing in each jurisdiction in which the character of the properties owned by it therein or the conduct of its business makes such qualification necessary, and the Borrower has the corporate power and adequate authority to enter into this Agreement.  

(b)

The execution and delivery of this Agreement and the performance of the provisions of this Agreement are not in contravention of or in conflict with any law or regulation or any term or provision of the Borrower’s constating documents and are duly authorized and do not require the consent or approval of any governmental agency or other authority, and this Agreement is a valid and legally enforceable obligation of the Borrower.

(c)

The execution, delivery and performance of this Agreement are not in contravention of or conflict with any agreement, indenture or undertaking to which the Borrower is a party or by which the Borrower or any of the Borrower’s property may be bound or affected, and will not cause any lien, charge or other encumbrance to be created or imposed upon any such property by reason thereof.

5.2

Lender’s Representations.  The Lender represents and warrants that:

(a)

The Lender is a corporation duly organized and existing pursuant to the laws of its place of incorporation without limit as to the duration of its existence and the Lender has the corporate power and adequate authority to enter into this Agreement.

(b)

The execution and delivery of this Agreement and the performance of the provisions of this Agreement are not in contravention of or in conflict with any law or regulation or any term or provision of the Lender’s charter documents, as applicable, and are duly authorized and do not require the consent or approval of any governmental agency or other authority.  This Agreement is a valid and legally enforceable obligation of the Lender.

(c)

The execution, delivery and performance of this Agreement are not in contravention of or conflict with any agreement, indenture or undertaking to which the Lender is a party or by which the Lender may be bound or affected.

6.

EVENTS OF DEFAULT

6.1

The occurrence of any of the following Events of Default shall, at the option of the Lender, make the Outstanding Amount and any accrued interest immediately due and payable, on demand:

(a)

Failure to pay the Outstanding Amount and accrued and unpaid interest on demand;

(b)

Borrower shall become insolvent or admit in writing its inability to pay its debts as they come due, or make any assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee otherwise shall be appointed; 

(c)

Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief pursuant to any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower;

(d)

Sale of all or substantially all of the assets of the Borrower; and

(e)

Any breach of the Borrower’s covenants in this Agreement.

7.

MISCELLANEOUS

7.1

Survival.  Each party is entitled to rely on the representations, warranties and agreements of the other party and all such representation, warranties and agreements will be effective regardless of any investigation that any party has undertaken or failed to undertake.  The representations, warranties and agreements will survive the Effective Date and continue in full force and effect until six (6) months after the Effective Date.

7.2

Further Assurances and Provision of Information.  Each of the parties hereto will co-operate with the others and execute and deliver to the other parties hereto such other instruments and documents and take such other actions as may be reasonably requested from time to time by any other party hereto as necessary to carry out, evidence, and confirm the intended purposes of this Agreement.

7.3

Amendment.  This Agreement may not be amended except by an instrument in writing signed by each of the parties.

7.4

Expenses.  Each party to this Agreement will bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the transactions contemplated hereby, including all fees and expenses of agents, representatives, counsel, and accountants.

7.5

Entire Agreement.  This Agreement, the schedules attached hereto and the other documents in connection with this transaction contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior arrangements and understandings, both written and oral, expressed or implied, with respect thereto.  Any preceding correspondence or offers are expressly superseded and terminated by this Agreement.

7.6

Notices.  All notices and other communications required or permitted under to this Agreement must be in writing and will be deemed given if sent by personal delivery, faxed with electronic confirmation of delivery, internationally-recognized express courier or registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for a party as will be specified by like notice):

7.7

Headings.  The headings contained in this Agreement are for convenience purposes only and will not affect in any way the meaning or interpretation of this Agreement.

7.8

Benefits.  This Agreement is and will only be construed as for the benefit of or enforceable by those persons party to this Agreement.

7.9

Assignment.  This Agreement may not be assigned (except by operation of law) by any party without the written consent of the other party.

7.10

Governing Law.  This Agreement will be governed by and construed in accordance with the laws of Nevada applicable to contracts made and to be performed therein.

7.11

Counterparts.  This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

7.12

Fax Execution.  This Agreement may be executed by delivery of executed signature pages by fax and such fax execution will be effective for all purposes.

7.13

Independent Legal Advice.  The Lender confirms that it has sought and obtained independent legal advice prior to execution of this Agreement and cannot and does not rely on the representations of the Borrower or its advisors respecting the legal effects of this Agreement.

7.14

Schedules and Exhibits.  The schedules and exhibits are attached to this Agreement and incorporated herein.

7.15

Currency.  All funds and monetary amounts included in this Agreement are stated in U.S. dollars.

IN WITNESS WHEREOF the parties have executed this Agreement on the date set forth above.

Per:

Authorized Signatory

POTASH AMERICA, INC.

Per:

Authorized Signatory

Schedule A

ADVANCE NOTICE

(To be executed by the Borrower in order to request an Advance)

To: _____________________________ (the “Lender”)

The undersigned,  (the “Borrower”) hereby requests an advance of $ of the principal amount of the Credit Facility, in accordance with the terms and conditions set forth in the Credit Facility Agreement dated  (the “Agreement”), between the Lender and the Borrower and as of the Date of Advance Notice written below.  All undefined capitalized terms used herein shall have the meanings set out in the Agreement.

		
	Date of Advance Notice: 

	 

	Outstanding Amount as of Date of Advance Notice:

	 

	Remaining Amount to be advanced under Credit Facility:

	 

Per:

Authorized Signatory

The Lender hereby acknowledges receipt of the Advance Notice and agrees with the amounts set out above as of the Date of Advance Notice.

Per:

Authorized Signatoryex10-29.htm

Exhibit 10.29

EXTENSION  AND MODIFICATION OF LEASE AGREEMENT

 

This Extension and Modification of Lease Agreement (“Agreement”) made this 30th day of April 2010 between 35TH STREET ASSOCIATES c/o Kaufman Management Company, 450 Seventh Avenue, Suite 1905, New York, NY 10123 hereinafter called “OWNER,” party of the first part and ANSWERS CORPORATION (F/K/A GuruNet Corporation), a Delaware corporation, currently located at 237 West  35th  Street, Suite 1101, New York, NY 10001, hereinafter called “TENANT,” party of the second part;

 

W I T N E S S E T H:

 

WHEREAS:  Owner  and GURUNET CORPORATION, as predecessor-in-interest to Tenant, entered into an Agreement of Lease Agreement dated April 29, 2005 (“Lease”), whereby the Owner leased to Tenant and Tenant hired from Owner  space consisting of a portion of the 11th floor known as Suite 1101 (“Original Demised Premises”), in  the building  known as  237  West 35th  Street, New York,  NY (“Building”), as presently occupied by Tenant herein, for a term commencing May 1, 2005 and expiring  June 30, 2010 (“Term”);

 

NOW THEREFORE: For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and Tenant agree as follows:

 

WHEREAS:  Both Owner and Tenant are desirous of further extending the Term of the Lease for a period of  two (2) years commencing  July 1, 2010 and expiring June 30, 2012 (the “Expiration Date”)  (collectively, the “Extended Term”);

 

WHEREAS: Owner and Tenant desire to modify the Lease by adding the premises known as Suite 1103 in the Building (“Additional Demised Premises”) to the Original Demised Premises for the period commencing May 1, 2010 and expiring on June 20, 2012, so that the Expiration Date for both the Original Demised Premises and Additional Demised Premises are co-terminous;

 

NOW THEREFORE: For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and Tenant agree as follows:

 

	
A.  

	
Original Demised Premises Extension. The Term of the Lease with respect to the Original Demised Premises is hereby extended through the Extended Term on the following terms and conditions:

 

	
1)  

	
Rent Schedule for Original Demised Premises During the Extended Term.

 

For the period commencing July 1, 2010 through June 30, 2011, the base annual rent shall be ninety one thousand twenty-six and xx/100 ($91,026.00) dollars per annum (or $7,585.50 per month).

 

For the period commencing July 1, 2011 through June 30, 2012, the base annual rent shall be ninety three thousand five hundred twenty-nine and 22/100 ($93,529.22) dollars per annum (or $7,794.10 per month).

 

2) Rental Concession.  Owner shall fully abate Tenant’s base rent for the month of July 2010 in the amount of $7,585.50.

 

3) Real Estate Tax.  Tenant’s “base tax year” for Real Estate Taxes shall be the fiscal year 2010/2011. Tenant’s Share with respect to the Original Demised Premises shall remain three percent

(3%).

 

4) Electricity.                           Tenant’s electricity charge with respect to the Original Demised Premises shall be ten thousand five hundred three and xx/100 ($10,503.00) dollars per annum (or $875.25 per month).

 

5) Security Deposit. The sum of eighteen thousand six hundred sixty-eight and 24/100 ($18,668.24) dollars heretofore deposited by the Tenant with the Owner as security under the Lease shall be retained by the Owner for the Extended Term, which shall be held and disbursed by the Owner in accordance with the terms and conditions set forth in the Lease applicable to the security deposit.

 

6) Water/Sprinkler. Tenant’s water and sprinkler charge with respect to the Original Demised Premises shall remain four hundred eighty and xx/100 ($480.00) dollars per annum (or $40.00 per month).

 

	
B.  

	
Lease of Additional Demised Premises. Owner hereby leases to Tenant and Tenant hereby leases from Owner the Additional Demised Premises, consisting of Suite 1103 in the Building, for the Extended Term on the following terms and conditions:

 

	
1)  

	
Rent Schedule for the Additional Demised Premises During the Extended Term:

 

For the period commencing May 1, 2010 through April 30, 2011 the base annual rent shall be fifty two thousand five hundred and xx/100 ($52,500.00) dollars per annum (or $4,375.00 per month).

 

For the period commencing May 1, 2011 through June 30, 2012 the base annual rent shall be fifty three thousand nine hundred forty-three and 75/100 ($53,943.75) dollars per annum ($4,495.32 per month).

 

2) Rental Concession.  Owner shall fully abate Tenant’s base rent for the month of May 2010 in the amount of $4,375.00.

 

3) Real Estate Tax.  Tenant’s “base tax year” for Real Estate Taxes shall be the fiscal year 2010/2011. Tenant’s Share with respect to the Additional Demised Premises shall be one and forty-two tenths percent (1.42%).

 

4) Electricity.  Tenant’s electricity charge with respect to the Additional Demised Premises shall be six thousand three hundred and xx/100 ($6,300.00) dollars per annum (or $525.00 per month)

 

5) Water/Sprinkler.  Tenant’s water and sprinkler charge with respect to the Additional Demised Premises shall be four hundred twenty and xx/100 ($420.00) dollars per annum (or $35.00 per month).

 

6) Security Deposit. In addition to the security deposit in the amount of $18,668.24 being held by Owner with respect to the Original Demised Premises, Tenant shall also deposit either in the form of cash or a letter of credit the amount of thirteen thousand four hundred eighty-five and 94/100 ($13,485.94) dollars as security for the Additional Demised Premises upon execution of this Agreement, which shall be held and disbursed by the Owner in accordance with the terms and conditions set forth in the Lease applicable to the security deposit.

 

7) Tenant’s Work. Owner agrees that Tenant will be performing certain work in the Additional Demised Premises, including, among others, carpeting, painting, installation of air-conditioning units and the build-out of a conference room. Tenant and Landlord will cooperate in order to expedite the completion of said work.

 

8) Owner’s Work:   Owner shall perform the following work in the Additional Demised Premises:

 

	
(a)  

	
Within three (3) business days after the date hereof, Owner shall provide labor to install Tenant’s air conditioning units to be supplied at Tenant’s expense together with mounting hardware. Tenant shall maintain the new A/C Units at its expense. Any required air conditioning outlets shall be at Tenant’s sole cost.

 

	
(b)  

	
Within three (3) business days after Owner’s receipt of written notice from Tenant indicating that the Additional Demised Premises’ Tenant’s Work has been completed, Owner shall:

 

	
·  

	
Paint the Additional Demised Premises with a building standard color to be selected by Tenant; provided, however, that Tenant may instead accept from Owner a credit of $1,000 in exchange for the Owner’s obligation to perform said paint job;

 

	
·  

	
Supply adequate number of amps to the Additional Demised Premises for Tenant’s use; and

 

	
·  

	
     Supply and install a new rear entrance door and paint it.

 

9) Asbestos.  Within sixty (60) days after the date hereof, Owner shall deliver to Tenant a Form ACP-5 confirming that the Additional Demised Premises are free of asbestos.

 

10) Demised Premises Defined.  Commencing May 1, 2010, the terms “Demised Premises”, “demised premises” and words of similar import as used in the Lease shall be deemed to be collective references to the Original Demised Premises and the Additional Demised Premises, and, except as modified herein or to the extent any term or provision by its nature applies solely to the Original Demised Premises, the terms and provisions of the Lease shall govern the Original Demised Premises and the Additional Demised Premises collectively.

 

	
C.  

	
Amendments to Lease.  The Lease is hereby amended as follows:

 

	
1)  

	
Article # 82 of the Rider and Article # 33 of the Additional Rider (Option to Cancel) to the Lease are hereby deleted in their entirety.

	
2)  

	
Any additional improvements or alterations hereafter made by Tenant to the Original Demised Premises or to the Additional Demised Premises shall be governed by the applicable terms of the Lease and this Agreement

	
3)  

	
Article 68 of the Rider and Article 29 of the Additional Rider (air-conditioning provisions) shall not apply to Additional Demised Premises.

	
4)  

	
The address of the Owner set forth in Article #54 of the Rider (Notices) to the Lease is hereby replaced with the following:

 

35th Street Associates

	
205  

	
Lexington Avenue, Suite 900

New York, NY 10016

Attention: Sabrina Eshaghian, Esq.

 

	
5)  

	
The addresses for duplicate copies of notices to Tenant set forth in Article # 14 of the Additional Rider (Notices) to the Lease are amended by replacing “Guru Net Corporation” with “Answers Corporation” and by replacing the address for Sills Cummis Epstein & Gross P.C. with the following:

 

Sills Cummis & Gross P.C.

One Rockefeller Plaza, 25th Floor

New York, New York 10020

Attention:  Edwin Weinberg, Esq.

      Facsimile No.:  (212) 643-6500

 

	
D.  

	
Miscellaneous

 

1. Upon the execution of this Agreement Owner shall deliver to Tenant three (3) additional cards for access to the building during non business hours at no cost to Tenant.

 

2. Owner agrees that upon the execution of this Agreement Tenant shall have the right to two (2) additional listings on the building’s directory without charge.

 

3. Each of Owner and Tenant represents and warrants to the other that it has not dealt with any broker in connection with this Agreement except for Kaufman Leasing Company LLC (Owner’s broker) and Grubb & Ellis NY Inc. (Tenant’s broker) (collectively, the “Brokers”).  Each of Tenant and Owner agrees to indemnify, defend and hold the other harmless from all damages, liability, costs and expenses (including reasonable attorneys’ fees and expenses) arising from any claims or demands of any broker or brokers or finders with which it has dealt (other than the Brokers) for any commission or fee alleged to be due such broker or brokers or finders in connection with its participating in the procuring or negotiation of this Agreement.  Owner shall pay the full commission due to the Brokers in connection with this Agreement pursuant to a separate agreement.

 

4. Except as herein modified and amended, the Lease is hereby ratified and confirmed and remains in full force and effect.

 

5. Capitalized terms used, but not defined herein shall have the meanings ascribed to them in the Lease.

 

6. This Agreement may be executed in any number of counterparts, provided each of the parties hereto executes at least one counterpart.  Each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.

 

[NO FURTHER TEXT ON THIS PAGE]

  

  

  

 

IN WITNESS WHEREOF:   the parties hereto have hereunto set their hands the day and year first above written.

 

OWNER:

35TH Street Associates:

/s/ Sabrina Eshaghian

____________________________

By: Sabrina Eshaghian

Name: As Attorney For

Title: David Eshaghian, Managing Partner

 

TENANT:

Answers Corporation:

 

 

	By:	 /s/ Steven Steinberg	 By:	 /s/ Robert S. Rosenschein
	 	Steven Steinberg 	 	Robert S. Rosenschein 
	 	CFO	 	CEO

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