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FOURTEENTH AMENDMENT OF
2013 LOAN AND SECURITY AGREEMENT

            THIS FOURTEENTH AMENDMENT OF 2013 LOAN AND SECURITY AGREEMENT (“Fourteenth Amendment”) is made as of the 29th day of September, 2020 (the “Effective Date”) by and among ADA-ES, INC., a Colorado corporation (“Borrower”), ADVANCED EMISSIONS SOLUTIONS, INC., a Delaware corporation, as Guarantor (“ADES”), and BOKF, NA d/b/a BOK Financial, as successor in interest to COBIZ BANK, a Colorado corporation, d/b/a COLORADO BUSINESS BANK (“Lender”).

RECITALS

            A.        Borrower, ADES and Lender are parties to that certain 2013 Loan and Security Agreement dated as of September 19, 2013 (as amended, supplemented, modified and restated from time to time, the “Loan Agreement”).

            B.        In accordance with the provisions of the Loan Agreement, Lender has agreed to amend, for the benefit of Borrower and ADES, certain terms and conditions contained in the Loan Agreement, as specifically provided herein.

            C.        Other than as defined in this Fourteenth Amendment, all capitalized terms used in this agreement without definition shall have the meanings given to such terms in the Loan Agreement.

            NOW THEREFORE, in consideration of the promises and covenants made by the parties and contained in this Fourteenth Amendment, the parties agree to the amendments set forth below as of the Effective Date:

1.Amendment to Definitions. The following definitions is added to Section 1.1 in alphabetical order as follows:

 “Secured Line Termination Date” means March 31, 2021, or such earlier date as may occur pursuant to Section 8.2 hereof.

2.Default.  The following is added as a new Section 8.1(k) entitled “Non-Renewal of Collateral”:

(k)        Non-Renewal of Collateral. Any contracts, agreements, leases or other documents that constitute any of the Collateral fails to be renewed.

3.No Default.  Borrower and ADES hereby certify to Lender that Borrower is in full compliance with the provisions of the Loan Agreement, and that no Event of Default will occur as a result of the effects of this Fourteenth Amendment.

4.Release of Claims.  Borrower and ADES hereby release and forever discharge Lender, its affiliates, directors, officers, agents, employees, and attorneys (“Lender Parties”) of and from any and all liability, suits, damages, claims, counterclaims, demands, reckonings and causes of action, setoffs and defenses, whether known or unknown, whether arising 

in law or equity, which any of Borrower or ADES have, now have or may have in the future against Lender Parties by reason of any acts, omissions, causes or things arising out of or in any way related to this Fourteenth Amendment or the Loan Agreement existing or accrued as of the date of this Fourteenth Amendment. This release shall survive the termination of this Fourteenth Amendment. Borrower acknowledges that the foregoing release is a material inducement to Lender's decision to extend to Borrower the financial accommodations hereunder and has been relied upon by Lender in its agreement to enter into this Fourteenth Amendment.

5.Costs.  Borrower will pay Lender's attorneys' fees for preparation of this Fourteenth Amendment, only, and reasonable costs and expenses of Lender strictly in connection therewith.

6.Miscellaneous. 

(a)The paragraph headings used herein are intended for reference purposes only and shall not be considered in the interpretation of the terms and conditions hereof.

(b)The terms and conditions of this Fourteenth Amendment shall be binding upon and shall inure to the benefit of the parties hereto, their successors and permitted assigns.

(c)This Fourteenth Amendment may be executed in any number of counterparts, and by Lender, ADES and Borrower on separate counterparts, each of which, when so executed and delivered, shall be an original, but all of which shall together constitute one and the same agreement.

(d)Except as expressly modified by this Fourteenth Amendment, the Loan Agreement shall remain in full force and effect and shall be enforceable in accordance with its terms.

(e)This Fourteenth Amendment and the Loan Agreement constitute the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersede all prior negotiations, understandings, and agreements between such parties with respect to such subject matter.

(f)This Fourteenth Amendment, and the transactions evidenced hereby, shall be governed by, and construed under, the internal laws of the State of Colorado, without regard to principles of conflicts of law, as the same may from time to time be in effect, including, without limitation, the Uniform Commercial Code as in effect in the State of Colorado.

(Signatures on following page)

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Fourteenth Amendment as of the Effective Date.

												
			ADA-ES, INC.,	
			a Colorado corporation	
				
				
			By:	/s/ Greg Marken
			Name:	Greg Marken
			Title:	Treasurer
				
			ADVANCED EMISSIONS SOLUTIONS, INC.,	
			A Delaware corporation	
				
				
			By:	/s/ Greg Marken
			Name:	Greg Marken
			Title:	CEO

[Signature Page to Fourteenth Amendment of 2013 Loan and Security Agreement]

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Fourteenth Amendment as of the Effective Date.

															
			BOKF, NA,		
			a national banking organization,		
			d/b/a BOK Financial		
					
			By:	/s/ Brian Russell	
			Name:	Brian Russell	
			Title:	Assistant Vice President	
					

[Signature Page to Fourteenth Amendment of 2013 Loan and Security Agreement]ssy-ex107_716.htm

 

EXHIBIT 10.7

 

 

	

	
U.S. Small Business Administration

NOTE

 

 

	
SBA Loan #
	
9738687704

	
SBA Loan Name
	
CARMICHAEL'S CASHWAY PHARMACY, INC.

	
Date
	
5/2/2020

	
Loan Amount
	
1246682.07

	
Interest Rate
	
1.00% FIXED

	
Borrower
	
CARMICHAEL'S CASHWAY PHARMACY, INC.

	
Operating Company
	
N/A

	
Lender
	
Synovus Bank

 

	
1.
	
 PROMISE TO PAY: 

In return for the Loan, Borrower promises to pay to the order of Lender the amount of 

One Million Two Hundred Forty Six Thousand Six Hundred Eighty Two and 07/100                                Dollars,

interest on the unpaid principal balance, and all other amounts required by this Note. 

	
2.
	
DEFINITIONS: 

“Collateral” means any property taken as security for payment of this Note or any guarantee of this Note.

“Guarantor” means each person or entity that signs a guarantee of payment of this Note. 

“Loan” means the loan evidenced by this Note. 

 “Loan Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral, including, but not limited to the Paycheck Protection Program Borrower Application Form. 

“SBA” means the Small Business Administration, an Agency of the United States of America. 

	
3. 
	
PAYMENT TERMS: 

Borrower must make all payments at the place Lender designates. The payment terms for this Note are:

This loan is made pursuant to the Paycheck Protection Program as part of the Coronavirus Aid, Relief, and Economic Security Act. 

Page 1/4

 

The term of this loan will be twenty-four (24) months, with the first six (6) months of principal and interest payments being deferred, with interest accruing, then converting to monthly principal and interest payments, amortized over eighteen (18) months, at the interest rate provided herein, for the remaining eighteen (18) months.  Lender will apply each payment first to pay interest accrued to the day Lender received the payment, then to bring principal current, and will apply any remaining balance to reduce principal.  Payments must be made on the same day as the date of this Note in the months they are due.  Lender shall adjust payments at least annually as needed to amortize principal over the remaining term of the Note.   

All remaining unpaid principal and accrued interest is due and payable twenty-four (24) months from the date of the Note. 

The interest rate will be fixed at 1.00% for the life of the loan. Interest will accrue on an Actual/365 day basis.  Interest shall accrue from the date hereof on the unpaid principal balance and shall continue to accrue until this Note is paid in full. 

Late Charge:  To the extent permitted, if a payment on this Note is more than 10 days late, Lender may charge Borrower a late fee of up to 5% of the unpaid portion of the regularly scheduled payment.

	
4. 
	
DEFAULT: 

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company: 

	
 
	
A.
	
Fails to do anything required by this Note and other Loan Documents; 

	
 
	
B. 
	
Defaults on any other loan with Lender; 

	
 
	
C. 
	
Does not preserve, or account to Lender’s satisfaction for, any of the Collateral or its proceeds; 

	
 
	
D. 
	
Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA; 

	
 
	
E. 
	
Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA; 

	
 
	
F. 
	
Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability to pay this Note; 

	
 
	
G. 
	
Fails to pay any taxes when due; 

	
 
	
H. 
	
Becomes the subject of a proceeding under any bankruptcy or insolvency law; 

	
 
	
I. 
	
Has a receiver or liquidator appointed for any part of their business or property; 

	
 
	
J. 
	
Makes an assignment for the benefit of creditors; 

	
 
	
K. 
	
Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s ability to pay this Note; 

	
 
	
L. 
	
Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior  written consent; or 

	
 
	
M. 
	
Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note. 

	
5. 
	
LENDER’S RIGHTS IF THERE IS A DEFAULT: 

Without notice or demand and without giving up any of its rights, Lender may: 

	
 
	
A. 
	
Require immediate payment of all amounts owing under this Note; 

	
 
	
B. 
	
Collect all amounts owing from any Borrower or Guarantor; 

	
 
	
C. 
	
File suit and obtain judgment; 

	
 
	
D. 
	
Take possession of any Collateral; or 

	
 
	
E. 
	
Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement. 

Page 2/4

 

	
6. 
	
LENDER’S GENERAL POWERS: 

Without notice and without Borrower’s consent, Lender may: 

	
 
	
A. 
	
Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses; 

	
 
	
B. 
	
Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance; 

	
 
	
C. 
	
Release anyone obligated to pay this Note; 

	
 
	
D. 
	
Compromise, release, renew, extend or substitute any of the Collateral; and 

	
 
	
E. 
	
Take any action necessary to protect the Collateral or collect amounts owing on this Note. 

	
7. 
	
WHEN FEDERAL LAW APPLIES:

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law. 

	
8. 
	
SUCCESSORS AND ASSIGNS: 

Under this Note, Borrower and Operating Company include the successors of each, and Lender includes its successors and assigns. 

	
9. 
	
GENERAL PROVISIONS: 

	
 
	
A. 
	
All individuals and entities signing this Note are jointly and severally liable. 

	
 
	
B. 
	
Borrower waives all suretyship defenses. 

	
 
	
C. 
	
Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender’s liens on Collateral and further agrees to fully cooperate to correct or supplement, if necessary, in the sole discretion of Lender, any and all Loan Documents so that all Loan Documents accurately describe the Loan.  

	
 
	
D.
	
Borrower further agrees to provide such additional instrumentation or documentation that Lender may from time to time deem to be required by the SBA or the Paycheck Protection Program.  

	
 
	
E. 
	
Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. 

	
 
	
F. 
	
Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note. 

	
 
	
G. 
	
If any part of this Note is unenforceable, all other parts remain in effect. 

	
 
	
H. 
	
To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale. 

	
10.
	
STATE-SPECIFIC PROVISIONS: 

If Borrower is a resident of Georgia, the following language applies: 

The undersigned Borrower hereby waives the right to require the Holder of this obligation to confirm any foreclosure sale as a condition for taking action to collect on this Note. 

Page 3/4

 

	
11.
	
BORROWER’S NAME(S) AND SIGNATURE(S): 

By signing below, each individual or entity becomes obligated under this Note as Borrower. 

CARMICHAEL'S CASHWAY PHARMACY, INC.

 

	
By:
	
 
	
/s/ Mark Stockslager

	
 
	
 
	
Mark Stockslager

	
 
	
 
	
As Authorized Signer

 

Page 4/4

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