Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.1

AMENDMENT NO. 1

TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

AMENDMENT NO. 1, dated as of June 22, 2007 (this “Amendment”) among GLOBAL CASH ACCESS
HOLDINGS, INC., a Delaware corporation (“Holdings”), GLOBAL CASH ACCESS, INC., a Delaware
corporation (the “Borrower”), and BANK OF AMERICA, N.A., as Administrative Agent (in such
capacity, the “Administrative Agent”).

WHEREAS, Holdings, the Borrower, the banks and other financial institutions from time to time
party hereto (the “Lenders”), Bank of America, N.A., as Swing Line Lender and as L/C
Issuer, and the Administrative Agent are parties to a Second Amended and Restated Credit Agreement
dated as of November 1, 2006 (the “Credit Agreement”).

WHEREAS, Holdings and the Borrower have requested that the Lenders agree to certain amendments
to the Credit Agreement, and each of the Lenders signatory hereto, which Lenders collectively
constitute the Required Lenders referred to in the Credit Agreement, have agreed, subject to the
terms and conditions set forth herein, to amend the Credit Agreement as herein provided.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereby agree as follows:

1. Terms. All terms used herein shall have the same meanings as in the Credit
Agreement unless otherwise defined herein.

2. Amendment. The Credit Agreement is hereby amended as follows:

(a) Clause (ii) of the definition of the term “Consolidated EBITDA” in Section 1.01 of the
Credit Agreement is hereby amended by adding “and (E) noncash stock compensation expense”
immediately prior to the end thereof.

(b) The definition of the term “Excess Cash Flow” in Section 1.01 of the Credit Agreement is
hereby amended by adding the following proviso immediately prior to the end thereof: “;
provided, however, that for purposes of calculating Excess Cash Flow under
Restricted Payments provisions of Section 7.07(ii)(C), clauses (ix) and (x) above shall be
disregarded (i.e., no reductions shall be made for optional prepayments of Term A Loans or
permanent commitment reductions under the Revolving Credit Commitments or Swing Line Commitment)”.

(c) The definition of the term “Investment” in Section 1.01 of the Credit Agreement is
hereby amended by adding the following proviso immediately prior to the end thereof: “;
provided, however, that for purposes of Section 7.06, Investment shall not
include any
repurchase or redemption by any Group Company of shares of its capital stock or equity
interests to the extent otherwise permitted by this Agreement.

 

 

 

(d) Line C of section II of Schedule 2 to Exhibit D of the Credit Agreement is hereby amended
by deleting the introductory phase “Borrower’s provisions for” and replacing it with the phrase
“Borrower’s cash payments of”.

3. Representations and Warranties. Each of Holdings and the Borrower represents and
warrants to the Administrative Agent and the Lenders that, on and as of the date hereof, and after
giving effect to this Amendment:

3.1 Authorization. The execution, delivery and performance by each of Holdings and
the Borrower of this Amendment has been duly authorized by all necessary action, and this Amendment
has been duly executed and delivered by each of Holdings and the Borrower.

3.2 Binding Obligation. This Amendment constitutes the legal, valid and binding
obligation of each of Holdings and the Borrower, enforceable in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar
laws affecting creditors’ rights generally and by principles of equity.

3.3 No Legal Obstacle to Amendment. The execution, delivery and performance of this
Amendment will not (a) contravene the Organization Documents of Holdings or the Borrower; (b)
contravene any contractual restriction binding on or affecting Holdings or the Borrower or any of
their property; (c) contravene any court decree, order or Law binding on or affecting Holdings or
the Borrower; or (d) result in, or require the creation or imposition of, any Lien on any of
Holdings or the Borrower’s properties. Except as have been obtained prior to the date hereof, no
authorization or approval of any governmental authority is required to permit the execution,
delivery or performance by Holdings or the Borrower of this Amendment, or the transactions
contemplated hereby.

3.4 Incorporation of Certain Representations. After giving effect to the terms of
this Amendment, the representations and warranties set forth in Article V of the Credit Agreement
are true and correct in all respects on and as of the date hereof as though made on and as of the
date hereof, except as to such representations made as of an earlier specified date.

3.5 Default. No Default or Event of Default under the Credit Agreement has occurred
and is continuing.

4. Conditions, Effectiveness.

4.1 Conditions. This Amendment shall become effective as of the date first written
above (the “First Amendment Effective Date”) upon satisfaction of each of the following
conditions:

(a) The Administrative Agent shall have received a Consent of Lender in the form of Exhibit B
executed by the Required Lenders.

 

 

 

(b) The Administrative Agent shall have received an affirmation letter substantially in the
form of Exhibit A from each of the Guarantors.

(c) The Administrative Agent shall have received payment of all fees and expenses payable to
it and its counsel in connection with this Amendment.

5. Miscellaneous.

5.1 Effectiveness of the Credit Agreement and the Notes. Except as hereby expressly
amended, the Credit Agreement and the Notes shall each remain in full force and effect, and are
hereby ratified and confirmed in all respects on and as of the date hereof.

5.2 Waivers. This Amendment is limited solely to the matters expressly set forth
herein and is specific in time and in intent and does not constitute, nor should it be construed
as, a waiver or amendment of any other term or condition, right, power or privilege under the
Credit Agreement or under any agreement, contract, indenture, document or instrument mentioned
therein; nor does it preclude or prejudice any rights of the Administrative Agent or the Lenders
thereunder, or any exercise thereof or the exercise of any other right, power or privilege, nor
shall it require the Required Lenders to agree to an amendment, waiver or consent for a similar
transaction or on a future occasion, nor shall any future waiver of any right, power, privilege or
default hereunder, or under any agreement, contract, indenture, document or instrument mentioned in
the Credit Agreement, constitute a waiver of any other right, power, privilege or default of the
same or of any other term or provision.

5.3 Counterparts. This Amendment may be executed in any number of counterparts, and
all of such counterparts taken together shall be deemed to constitute one and the same instrument.

5.4 Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of New York.

 

 

 

IN WITNESS WHEREOF, the signatories hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 
	HOLDINGS:	 	GLOBAL CASH ACCESS HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kirk Sanford
	 

	 	 	 	 
	 

	 	Name:
	 	Kirk Sanford
	 

	 	 	 	 
	 

	 	Title:
	 	President and Chief Executive Officer
	 

	 	 	 	 
	 
	 	 	 	 
	BORROWER:	 	GLOBAL CASH ACCESS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kirk Sanford
	 

	 	 	 	 
	 

	 	Name:
	 	Kirk Sanford
	 

	 	 	 	 
	 

	 	Title:
	 	President and Chief Executive Officer
	 

	 	 	 	 
	 
	 	 	 	 
	ADMINISTRATIVE AGENT:	 	BANK OF AMERICA, N.A.,
	 	 	as Administrative Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:Filed by Bowne Pure Compliance

 

Exhibit 10.18

 

	 	 	 	 	 	 	 	 	 	 	 
	LOAN NUMBER

	 	LOAN NAME
	 	ACCT. NUMBER
	 	AGREEMENT DATE
	 	INITIALS
	043001 1701

	 	Eldorado Artesian
	 	 	3001 17	 	 	02/20/07
	 	RA
	 

	 	Springs, Inc.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	NOTE AMOUNT

	 	INDEX (w/Margin)
	 	RATE
	 	MATURITY DATE
	 	LOAN PURPOSE
	$1,500,000.00

	 	Not Applicable
	 	 	7.750	%	 	02/20/12
	 	Commercial

Creditor Use Only

COMMERCIAL LOAN AGREEMENT

Single Advance Loan

DATE AND PARTIES. The date of this Commercial Loan Agreement (Agreement) is February 20, 2007. The
parties and their addresses are as follows:

LENDER:

     AMERICAN NATIONAL BANK

     1360 Walnut Street,

     Suite 100

     Boulder, Colorado 80302

BORROWER:

     ELDORADO ARTESIAN SPRINGS, INC. a

     Colorado Corporation 1783 Dogwood

     Street Louisville, Colorado 80027

     DOUGLAS A. LARSON

     31 Fowler Lane

     Eldorado Springs, Colorado 80025

     KEVIN M. SIPPLE

     12 Baldwin Circle

     Eldorado Springs, Colorado 80025

     JEREMY S. MARTIN

     2707 4th Street

     Boulder, Colorado 80304

1. DEFINITIONS. For the purposes of this Agreement, the following terms have the following
meanings.

A. Accounting Terms. In this Agreement, any accounting terms that are not specifically defined
will have their customary meanings under generally accepted accounting principles.

B. Insiders. Insiders include those defined as insiders by the United States Bankruptcy Code, as
amended; or to the extent left undefined, include without limitation any officer, employee,
stockholder or member, director, partner, or any immediate family member of any of the
foregoing, or any person or entity which, directly or indirectly, controls, is controlled by or
is under common control with me.

C. Loan. The Loan refers to this transaction generally, including obligations and duties arising
from the terms of all documents prepared or submitted for this transaction.

D. Loan Documents. Loan Documents refer to all the documents executed as a part of or in
connection with the Loan.

E. Pronouns. The pronouns “I”, “me” and “my” refer to every Borrower signing this Agreement,
individually or together. “You” and “your” refers to the Loan’s lender.

F. Property. Property is any property, real, personal or intangible, that secures my performance
of the obligations of this Loan.

2. SINGLE ADVANCE. In accordance with the terms of this Agreement and other Loan Documents, you
will provide me with a term note in the amount of $1,500,000.00 (Principal). I will receive the
funds from this Loan in one advance. No additional advances are contemplated, except those made to
protect and preserve your interests as provided in this Agreement or other Loan Documents.

3. MATURITY DATE. I agree to fully repay the Loan by February 20, 2012.

4. WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which
will continue as long as this Loan is in effect; except when this Agreement provides otherwise.

A. Power. I am duly organized, and validly existing and in good standing in all jurisdictions in
which I operate. I have the power and authority to enter into this transaction and to carry on
my business or activity as it is now being conducted and, as applicable, am qualified to do so
in each jurisdiction in which I operate.

B. Authority. The execution, delivery and performance of tlfls Loan and the
obligation evidenced by the Note are within my powers, have been duly authorized, have received
all necessary governmental approval, will not violate any provision of law, or order
of court or governmental agency, and will not violate any agreement to which I am a party or to
which I am or any of my property is subject.

C. Name and Place of Business. Other than previously disclosed in writing to you I have not
changed my name or principal place of business within the last 10 years and have not used any
other trade or fictitious name. Without your prior written consent, I do not and will not use
any other name and will preserve my existing name, trade names and franchises.

D. Hazardous Substances. Except as I previously disclosed in writing and you acknowledge in
writing, no Hazardous Substance, underground tanks, private dumps or open wells are currently
located at, on, in, under or about the Property.

E. Use of Property. After diligent inquiry, I do not know or have reason to know that any
Hazardous Substance has been discharged, leached or disposed of, in violation of any
Environmental Law, from the property onto, over or into any other property, or from any other
property onto, over or into the property.

F. Environmental Laws. I have no knowledge or reason to believe that there is any pending or
threatened investigation, claim, judgment or order, violation, lien, or other notice under any
Environmental Law that concerns me or the property. The property and any activities on the
property are in full compliance with all Environmental Law.

G. Loan Purpose. The purpose of this Loan is to purchase new water rights, consolidate real
estate loan, and pay down revolving line of credit.

H. No Other Liens. I own or lease all property that I need to conduct my business and activities.
I have good and marketable title to all property that I own or lease. All of my Property is free
and clear of all liens, security interests, encumbrances and other adverse claims and interests,
except those to you or those you consent to in writing.

I. Compliance With Laws. I am not violating any laws, regulations, rules, orders, judgments or
decrees applicable to me or my property, except for those which I am challenging in good faith
through proper proceedings after providing adequate reserves to fully pay the claim and its
challenge should I lose.

5. FINANCIAL STATEMENTS. I will prepare and maintain my financial records using consistently
applied generally accepted accounting principles then in effect. I will provide you with financial
information in a form that you accept and under the following terms.

A. Certification. I represent and warrant that any financial statements that I provide you fairly
represents my financial condition for the stated periods, is current, complete, true and accurate
in all material respects, includes all of my direct or contingent liabilities and there has been
no material adverse change in my financial condition, operations or business since the date the
financial information was prepared.

B. Frequency. In addition to the financial statements provided to you prior to closing, I will
provide you with current financial statements on an annual basis, or as otherwise requested by
you, until I have performed all of my obligations under the Loan and you terminate the Loan in
writing.

C. Rent Roll and Vacancy Analysis Report. I will provide you with an annual report concerning my
rental real estate property, listing for each month: my current tenants, the square footage each
tenant rented, the rent each paid and each lease’s expiration
date as well as the square footage that remained vacant.

 

 

 

D. Requested Information. I will provide you with any other information about my operations,
financial affairs and condition within see below or 30 days after your request.

E. Additional Financial Statements Term.

(1) Annual Audited Business Financial Statements: Borrower will provide fiscal year end, audited
business financial statements within 90-days of fiscal year end.

(2) Quarterly 10-QSB Forms: Borrower will provide quarterly 10-QSB forms, within 30 days of
filing due date.

(3) Annual Personal Financial Statements: Co-makers will provide a financial statement annually
or within 30 days of written request.

(4) Annual Personal Tax Returns: Co-makers will provide personal tax returns, or valid extension,
within 30 days of filing due date. If an extension is received, the filed tax returns must be
received within 30-days of expiration of extension.

6. COVENANTS. Until the Loan and all related debts, liabilities and obligations are paid and
discharged, I will comply with the following terms, unless you ‘Naive compliance in writing.

A. Participation. I consent to you participating or syndicating the Loan and sharing any
information that you decide is necessary about me and the Loan with the other participants or
syndicators. B. Inspection. Following your written request, I will immediately pay for all
one-time and recurring out-of-pocket costs that are related to the inspection of my records,
business or Property that secures the Loan. Upon reasonable notice, I will permit you or your
agents to enter any of my premises and any location where my Property is located during regular
business hours to do the following.

(1) You may inspect, audit, check, review and obtain copies from my books, records, journals,
orders, receipts, and any correspondence and other business related data.

(2) You may discuss my affairs, finances and business with any one who provides you with
evidence that they are a creditor of mine, the sufficiency of which will be subject to your
sole discretion.

(3) You may inspect my Property, audit for the use and disposition of the Property’s proceeds
and proceeds of proceeds; or do whatever you decide is necessary to preserve and protect the
Property and your interest in the Property.

B. After prior notice to me, you may discuss my financial condition and business operations with
my independent accountants, if any, or my chief financial officer and I may be present during
these discussions. As long as the Loan is outstanding, I will direct all of my accountants and
auditors to permit you to examine my records in their possession and to make copies of these
records. You will use your best efforts to maintain the confidentiality of the information you or
your agents obtain, except you may provide your regulator, if any, with required information
about my financial condition, operation and business or that of my parent, subsidiaries or
affiliates.

C. Business Requirements. I will preserve and maintain my present existence and good standing in
the jurisdiction where I am organized and all of my rights, privileges and franchises. I will do
all that is needed or required to continue my business or activities as presently conducted, by
obtaining licenses, permits and bonds everywhere I engage in business or activities or own, lease
or locate my property. I will obtain your prior written consent before I cease my business or
before I engage in any new line of business that is materially different from my present
business.

D. Compliance with Laws. I will not violate any laws, regulations, rules, orders, judgments or
decrees applicable to me or my Property, except for those which I challenge in good faith through
proper proceedings after providing adequate reserves to fully pay the claim and its appeal should
I lose. Laws include without limitation the Federal Fair Labor Standards Act requirements for
producing goods, the’ federal Employee Retirement Income Security Act of 1 974’s requirements for
the establishment, funding and management of qualified deferred compensation plans for employees,
health and safety laws, environmental laws, tax laws, licensing and permit laws. On your request,
I will provide you with written evidence that I have fully and timely paid my taxes, assessments
and other governmental charges levied or imposed on me, my income or profits and my property.
Taxes include without limitation sales taxes, use taxes, personal property taxes, documentary
stamp taxes, recordation taxes, franchise taxes, income taxes, withholding taxes, FICA taxes and
unemployment taxes. I will adequately provide for the payment of these taxes, assessments and
other charges that have accrued but are not yet due and payable.

E. New Organizations. I will obtain your written consent and any necessary changes to the Loan
Documents before I organize or participate in the organization of any entity, merge into or
consolidate with any one, permit any one else to merge into me, acquire all or substantially all
of the assets of any one else or otherwise materially change my legal structure, management,
ownership or financial condition.

F. Other Liabilities. I will not incur, assume or permit any debt evidenced by notes, bonds or
similar obligations, except: debt in existence on the date of this Agreement and fully disclosed
to you; debt subordinated in payment to you on conditions and terms acceptable to you; accounts
payable incurred in the ordinary course of my business and paid under customary trade terms or
contested in good faith with reserves satisfactory to you.

G. Notice to You. I will promptly notify you of any material change in my financial condition,
of the occurrence of a default under the terms of this Agreement or any other Loan Document, or
a default by me under any agreement between me and any third party which materially and
adversely affects my property, operations, financial condition or business.

H. Dispose of No Assets. Without your prior written consent or as the Loan Documents permit, I
will not sell, lease, assign, transfer, dispose of or otherwise distribute all or substantially
all of my assets to any person other than in the ordinary course of business for the assets’
depreciated book value or more.

I. Insurance. I will obtain and maintain insurance with insurers, in amounts and coverages that
are acceptable to you and customary with industry practice. This may include without limitation
insurance policies for public liability, fire, hazard and extended risk, workers compensation,
and, at your request, business interruption and/or rent loss insurance. At your request, I will
deliver to you certified copies of all of these insurance policies, binders or certificates. I
will obtain and maintain a mortgagee or lender loss payee endorsement for you when these
endorsements are available. I will immediately notify you of cancellation or termination of
insurance. I will require all insurance policies to provide you with at least 10 days prior
written notice to you of cancellation or modification. I consent to you using or disclosing
information relative to any contract of insurance required by the Loan for the purpose of
replacing this insurance. I also authorize my insurer and you to exchange all relevant
information related to any contract of insurance required by any document executed as part of
this Loan.

J. Property Maintenance. I will keep all tangible and intangible property that I consider
necessary or useful in my business in good working condition by making all needed repairs,
replacements and improvements and by making all rental, lease or other payments due on this
property.

K. Property Loss. I will immediately notify you, and the insurance company when appropriate, of
any material casualty, loss or depreciation to the Property or to my other property that affects
my business.

L. Additional Taxes. I will pay all filing and recording costs and fees, including any
recordation, documentary or transfer taxes or stamps, that are required to be paid with respect
to this Loan and any Loan Documents.

M. Additional Covenants.

**Debt Service Coverage Ratio: Annually upon receipt of the company’s 10-K annual financial
statement, borrower will maintain a debt coverage ratio as defined by net income plus
depreciation + amortization + interest expense divided by the annual debt payments on all
outstanding borrowings greater than 1.15:1.

I understand and agree that, notwithstanding anything else in this agreement to the contrary,
you may place customary tombstone or similar notices in publications that announce that you have
made this loan. Such announcements will generally include my name and the amount of the loan,
and may include my logo and the general purpose of the loan.

The word Loan or Loans means and includes without limitation all Loan or Loans, together with
all other obligations, debts and liabilities of Borrower to Lender, or any one or more of them,
as well as all claims by Lender against Borrower, or any one or more of them; whether now or
hereafter existing, voluntary or involuntary, due or not due, absolute or contingent, liquidated
or unliquidated; whether Borrower may be liable individually or jointly with others; whether
Borrower may be obligated as a guarantor, surety, or otherwise; whether recovery upon such Loan
or Loans may be or hereafter may become barred by any statute of limitations; and whether such
Loan or Loans may be or hereafter may become otherwise unenforceable. The word Loan or Loans
also means and includes without limitation any and all commercial loans and financial
accommodations from Lender to Borrower, whether now or hereafter existing, and however
evidenced, including without limitation those Loan or Loans and financial accommodations
described herein or described on any exhibit or schedule attached to this Agreement from time to
time.

7. DEFAULT. I will be in default if any of the following occur:

A. Payments. I fail to make a payment in full when due.

 

 

 

B. Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver
by or on behalf of, application of any debtor relief law, the assignment for the benefit of
creditors by or on behalf of, the voluntary or involuntary termination
of existence by, or the commencement of any proceeding under any present or future federal or
state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against me
or any co-signer, endorser, surety or guarantor of this Agreement or any other obligations I
have with you.

C. Death or Incompetency. I die or am declared legally incompetent.

D. Business Termination. I merge, dissolve, reorganize, end my business or existence, or a
partner or majority owner dies or is declared legally incompetent.

E. Failure to Perform. I fail to perform any condition or to keep any promise or
covenant of this Agreement. F. Other Documents. A default occurs under the terms of
any other Loan Document.

G. Other Agreements. I am in default on any other debt or agreement I have with you.

H. Misrepresentation. I make any verbal or written statement or provide any financial
information that is untrue, inaccurate, or conceals a material fact at the time it is made or
provided,

I. Judgment. I fail to satisfy or appeal any judgment against me.

J. Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by
a legal authority.

K. Name Change. I change my name or assume an additional name without notifying you before
making such a change.

L. Property Transfer. I transfer all or a substantial part of my money or
property.

M. Property Value. You determine in good faith that the value of the property has declined
or is impaired.

N. Material Change. Without first notifying you, there is a material change in my business,
including ownership, management, and financial conditions.

0. Insecurity. You determine in good faith that a material adverse change has occurred in
Borrower’s financial condition from the conditions set forth in Borrower’s most recent financial
statement before the date of this Agreement or that the prospect for payment or performance of
the Loan is impaired for any reason.

8. REMEDIES. After I default, you may at your option do any one or more of the following.

A. Acceleration. You may make all or any part of the amount owing by the terms of the Loan
immediately due. If I am a debtor in a bankruptcy petition or in an application filed under
section 5(a)(3) of the Securities Investor Protection Act, the Loan is automatically accelerated
and immediately due and payable without notice or demand upon filing of the petition or
application.

B. Sources. You may use any and all remedies you have under state or federal law or in any Loan
Document.

C. Insurance Benefits. You may make a claim for any and all insurance benefits or refunds that
may be available on my default.

D. Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be
added to the balance owing under the terms of the Loan, and accrue interest at the highest
post-maturity interest rate.

E. Attachment. You may attach or garnish my wages or earnings.

F. Set-Off. You may use the right of set-off. This means you may set-off any amount due and
payable under the terms of the Loan against any right I have to receive money from you.

My right to receive money from you includes any deposit or share account balance I have with
you; any money owed to me on an item presented to you or in your possession for collection or
exchange; and any repurchase agreement or other nondeposit obligation. “Any amount due and
payable under the terms of the Loan” means the total amount to which you are entitled to demand
payment under the terms of the Loan at the time you set-off.

Subject to any other written contract, if my right to receive money from you is also owned by
someone who has not agreed to pay the Loan, your right of set-off will apply to my interest in
the obligation and to any other amounts I could withdraw on my sole request or endorsement.

Your right of set-off does not apply to an account or other obligation where my rights arise
only in a representative capacity. It also does not: apply to any Individual Retirement Account
or other tax-deferred retirement account. You will not be liable for the dishonor of any check
when the dishonor occurs because you set-off against any of my accounts. I agree to hold you
harmless from any such claims arising as a result of your exercise of your right of set-off.

G. Waiver. Except as otherwise required by law, by choosing any one or more of these remedies
you do not give up your right to use any other remedy. You do not waive a default if you choose
not to use a remedy. By electing not to use any remedy, you do not waive your right to later
consider the event a default and to use any remedies if the default continues
or occurs again.

9. COLLECTION EXPENSES AND ATTORNEYS’ FEES. On or after Default, to the extent permitted by law, I
agree to pay all expenses of collection, enforcement or protection of your rights and remedies
under this Agreement or any other Loan Document. Expenses include, but are not limited to,
attorneys’ fees, court costs and other legal expenses. These expenses are due and payable
immediately. If not paid immediately, these expenses will bear interest from the date of payment
until paid in full at the highest interest rate in effect as provided for in the terms of this
Loan. All fees and expenses will be secured by the Property I have granted to you, if any. In
addition, to the extent permitted by the United States Bankruptcy Code, I agree to pay the
reasonable attorneys’ fees incurred by you to protect your rights and interests in connection with
any bankruptcy proceedings initiated by or against me.

10. APPLICABLE LAW. This: Agreement is governed by the laws of Colorado, the United States of
America, and to the extent required, by the laws of the jurisdiction where the Property is
located, except to the extent such state laws are preempted by federal law.

11. JOINT AND INDIVIDUAL. LIABILITY AND SUCCESSORS. My obligation to pay the Loan is independent
of the obligation of any other person who has also agreed to pay it, You may sue me alone, or
anyone else who is obligated on the Loan, or any number of us together, to collect the Loan.
Extending the Loan or new obligations under the Loan, will
 _____ 
not affect my duty under
the Loan and I will shill be obligated to pay the Loan. You may assign all or part of your rights
or duties under this Agreement or the Loan Documents without my consent. If you assign this
Agreement, all of my covenants, agreements, representations and warranties contained in this
Agreement or the Loan Documents will benefit your successors and assigns. I may not assign this
Agreement or any of my rights under it without your prior written consent. The duties of the Loan
will
bind my successors and assigns.

12. AMENDMENT, INTEGRATION AND SEVERABILITY. This Agreement may not be amended or modified by oral
agreement. No amendment or modification of this Agreement is effective unless made in writing and
executed by you and me. This Agreement and the other Loan Documents are the complete and final
expression of the understanding between you and me. If any provision of this Agreement is
unenforceable, then the unenforceable provision will be severed and the remaining
provisions will still be enforceable.

13. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the
singular. The section headings are for convenience only and are not to be used to interpret or
define the terms of this Agreement.

14. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any
notice will be given by delivering it or mailing it by first class mail to the appropriate party’s
address listed in the DATE AND PARTIES section, or to any other address designated in writing.
Notice to one Borrower will be deemed to be notice to all Borrowers. I will inform you in writing
of any change in my name, address or other application information. I will provide you any
financial statement or information you request. All financial statements and information I give
you will be correct and complete. I agree to sign, deliver, and file any additional documents or
certifications that you may consider necessary to perfect, continue, and preserve my obligations
under this Loan and to confirm your lien status on any Property. Time is of the essence.

15. SIGNATURES. By signing, I agree to the terms
contained in this Agreement. I also acknowledge
receipt of a copy of this Agreement.

 

 

 

BORROWER:

Eldorado Artesian Springs, Inc.

By /s/ Douglas A. Larson

Douglas A. Larson, President

By /s/ Kevin M. Sipple

Kevin M. Sipple, Vice President

By /s/ Jeremy S. Martin

Jeremy S. Martin, Vice President

                                                            

LENDER:

American National Bank

By /s/ Roger Ayan

Roger Ayan, President

 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	LOAN NUMBER

	 	LOAN NAME
	 	ACCT. NUMBER
	 	NOTE DATE
	 	INITIALS
	043001 1701

	 	Eldorado Artesian
	 	 	300117	 	 	02/20/07
	 	RA
	 

	 	Springs, Inc.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	NOTE AMOUNT

	 	INDEX (w/Margin)
	 	RATE
	 	MATURITY DATE
	 	LOAN PURPOSE
	$1,500,000.00

	 	Not Applicable
	 	 	7.750	%	 	02/20/12
	 	Commercial

Creditor Use Only

PROMISSORY NOTE

(Commercial — Single Advance)

DATE AND PARTIES. The date of this Promissory Note (Note) is February 20, 2007. The parties and
their addresses are:

LENDER:

AMERICAN NATIONAL BANK 1360 Walnut Street, Suite 100 Boulder, Colorado 80302

Telephone: (303) 443-1411

BORROWER:

ELDORADO ARTESIAN SPRINGS, INC. a Colorado Corporation 1783 Dogwood Street Louisville,
Colorado E10027

DOUGLAS A. LARSON

31 Fowler Lane

Eldorado Springs, Colorado 80025

KEVIN M. SIPPLE

12 Baldwin Circle

Eldorado Springs, Colorado 80025

JEREMY S. MARTIN 2707 4th Street

Boulder, Colorado 80304

1. DEFINITIONS. As used in this Note, the terms have the following meanings:

A. Pronouns. The pronouns “I,” “me,” and “my” refer to each Borrower signing this Note,
individually and together. “You”
and “Your” refer to the Lender.

B. Note. Note refers to this document, and any extensions, renewals, modifications and
substitutions of this Note.

C. Loan. Loan refers to this transaction generally, including obligations and duties arising
from the terms of all documents prepared or submitted for this transaction such as applications,
security agreements, disclosures or notes, and this Note.

D. Loan Documents. Loan Documents refer to all the documents executed as a part of or in connection
with the Loan.

E. Property. Property is any property, real, personal or intangible, that secures my performance
of the obligations of this Loan.

F. Percent. Rates and rate change limitations are expressed as annualized percentages.

2. PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at
such other location as you may designate, the principal sum of $1,500,000.00 (Principal) plus
interest from February 20, 2007 on the unpaid Principal balance until this Note matures or this
obligation is accelerated.

3. INTEREST. Interest will accrue on the unpaid Principal balance of this Note at the rate of 7.750
percent (Interest Rate).

A. Interest After Default. If you declare a default under the terms of the Loan, including for
failure to pay in full at maturity, you may increase the Interest Rate otherwise payable as
described in this section. In such event, interest will accrue on the unpaid Principal balance
of this Note at 21.000 percent until paid in full.

B. Maximum Interest Amount. Any amount assessed or collected as interest under the terms of this
Note will be limited to the maximum lawful amount of interest allowed by state or federal law,
whichever is greater. Amounts collected in excess of the maximum lawful amount will be applied
first to the unpaid Principal balance. Any remainder will be refunded to me.

C. Statutory Authority. The amount assessed or collected on this Note is authorized by the
Colorado usury laws under Colo. Rev. Stat. § 5-12-103.

D. Accrual. Interest accrues using an Actual/360 days counting method.

4. ADDITIONAL CHARGES. As additional consideration, I agree to pay, or have paid, the fees and
charges listed on the APPENDIX: FEES AND CHARGES, which is attached to and made part of this Note.

5. GOVERNING AGREEMENT. This Note is further governed by the Commercial Loan Agreement executed
between you and me as a part of this Loan, as modified, amended or supplemented. The Commercial
Loan Agreement states the terms and conditions of this Note, including the terms and conditions
under which the maturity of this Note may be accelerated. When I sign this Note, I represent to you
that I have reviewed and am in compliance with the terms contained in the Commercial Loan
Agreement.

6. PAYMENT. I agree to pay this Note in 60 payments. This Note is amortized over 300 payments. I
will make 59 payments of $11,438.61 beginning on March 20, 2007, and on the 20th day of each month
thereafter. A single “balloon payment” of the entire unpaid balance of Principal and interest will
he due February 20, 2012.

Payments will be rounded to the nearest $.01. With the final payment I also agree to pay any
additional fees or charges owing and the amount of any advances you have made to others on my
behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a month that contains no
such day will, instead, be made on the last day of such month.

 

 

 

Each payment I make on this Note will be applied first to interest that is due then to
principal that is due, and finally to any charges that I owe other than principal and interest. If
you and I agree to a different application of payments, we will describe our agreement on this
Note. You may change how payments are applied in your sole discretion without notice to me. The
actual amount of my final payment will depend on my payment record.

7. PREPAYMENT. I may prepay this Loan in full or in part at any time. Any partial prepayment will
not excuse any later scheduled payments until I pay in full.

8. LOAN PURPOSE. The purpose of this Loan is to purchase new water rights, consolidate real estate
loan, and pay down revolving line of credit.

9. ADDITIONAL TERMS.

IMPROVED REAL ESTATE: If this note is secured by improved real property, and should the real
property at any time become located in an area designated by the Director of the Federal Emergency
Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal
Flood Insurance for the full unpaid principal balance of the loan and any prior liens on the
property securing the loan, up to the maximum policy limits set under the National Flood Insurance
Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
loan.

10. SECURITY. The Loan is secured by separate security instruments prepared
together with this Note as follows:

	 	 	 
	Document Name

	 	Parties to Document
	 
	 	 
	Leases And Rents Assignment - 255 Artesian Eldorado Artesian Springs, Inc.
	 
	 	 
	Drive, 23 Kneel Rd,
	 	 
	 
	 	 
	35, 299, 319, 321 Eldorado Springs Drive
	 	 
	 
	 	 
	Deed Of Trust — 255 Artesian Drive, 23

	 	Eldorado Artesian Springs, Inc.
	 
	 	 
	Kneale Rd,
	 	 
	 
	 	 
	35, 299, 319, 321 Eldorado Springs Drive
	 	 

11. DUE ON SALE OR ENCUMBRANCE. You may, at your option, declare the entire balance of this
Note to be immediately due and payable upon the creation of, or contract for the creation of, any
lien, encumbrance, transfer or sale of all or any part of the Property. This right is subject to
the restrictions imposed by federal law (12 C.F.R. 591), as applicable.

12. WAIVERS AND CONSENT. To the extent not prohibited by law, I waive protest, presentment for
payment, demand, notice of acceleration, notice of intent to accelerate and notice of dishonor.

A. Additional Waivers By Borrower. In addition, I, and any party to this Note and Loan, to the
extent permitted by law, consent to certain actions you may take, and generally waive defenses
that may be available based on these actions or based on the status of a party to this Note.

(1) You may renew or extend payments on this Note, regardless of the number of such renewals
or extensions.

(2) You may release any Borrower, endorser, guarantor, surety, accommodation maker
or any other co-signer.

(3) You may release, substitute or impair any Property
securing this Note.

(4) You, or any institution participating in this Note, may
invoke your right of set-off.

(5) You may enter into any sales, repurchases or participations of this Note to any
person in any amounts and I waive notice of such sales, repurchases or participations.

(6) I agree that any of us signing this Note as a Borrower is authorized to modify the terms
of this Note or any instrument securing, guarantying or relating to this Note.

B. No Waiver By Lender. Your course of dealing, or your forbearance from, or delay in, the
exercise of any of your rights,
remedies, privileges or right to insist upon my strict performance of any provisions contained in
this Note, or any other Loan
Document, shall not be construed as a waiver by you, unless any such waiver is in writing and is
signed by you.

13. COMMISSIONS. I understand and agree that you (or your affiliate) will earn commissions or
fees on any insurance products, and may earn such fees on other services that I buy through you or
your affiliate.

14. APPLICABLE LAW. This Note is governed by the laws of Colorado, the United
States of America, and to the extent
required, by the laws of the jurisdiction where the Property is located, except to the extent such
state laws are preempted by federal law.

15. JOINT AND INDIVIDUAL. LIABILITY AND SUCCESSORS. My obligation to pay the Loan is
independent of the obligation of any other person who has also agreed to pay it. You may sue me
alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the
Loan. Extending the Loan or new obligations under the Loan, will not affect my duty under the Loan
and I will still be obligated to pay the Loan. This Note shall inure to the benefit of and be
enforceable by you and your successors and assigns and shall be binding upon and enforceable
against me and my personal representatives, successors, heirs and assigns.

16. AMENDMENT, INTEGRATION AND SEVERABILITY. This Note may not be amended or modified by oral
agreement. No amendment or modification of this Note is effective unless made in writing and
executed by you and me. This Note and the other Loan Documents are the complete and final
expression of the agreement. If any provision of this Note is unenforceable, then the unenforceable
provision will be severed and the remaining provisions will still be enforceable.

17. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the
singular. The section headings are for convenience only and are not to be used to interpret or
define the terms of this Note.

 0 

18. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any
notice will be
given by delivering it or mailing it by first class mail to the appropriate party’s address listed
in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one
Borrower will be deemed to be notice to all Borrowers. I will inform you in writing of any change
in my name, address or other application information. I agree to sign, deliver, and file any
additional documents or certifications that you may consider necessary to perfect, continue, and
preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of
the essence.

19. CREDIT INFORMATION. I agree to supply you with whatever information you reasonably request. You
will make requests for this information without undue frequency, and will give me reasonable time
in which to supply the information.

20. ERRORS AND OMISSIONS. I agree, if requested by you, to fully cooperate in the correction, if
necessary, in the reasonable discretion of you of any and all loan closing documents so that all
documents accurately describe the loan between you and me. I
agree to assume all costs including by way of illustration and not limitation, actual expenses,
legal fees and marketing losses for failing to reasonably comply with your requests within thirty
(30) days.

 

 

 

21. SIGNATURES. By signing, I agree to the terms contained in this Note. I also acknowledge
receipt of a copy of this Note.

BORROWER:

     Eldorado Artesian Springs, Inc.

By /s/ Douglas A. Larson

Douglas A. Larson, President

By /s/ Kevin M. Sipple

Kevin M. Sipple, Vice President

By /s/ Jeremy S. Martin

Jeremy S. Martin, Vice President

By /s/ Douglas A. Larson

Douglas A. Larson, Individually

By /s/ Kevin M. Sipple

Kevin M. Sipple, Individually

By /s/ Jeremy S. Martin

Jeremy S. Martin, Individually

LENDER:

     American National Bank

By /s/ Roger Ayan

Roger Ayan, Vice President

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