Document:

Exhibit

Confidential Treatment Requested by AdvanSix Inc.
 

Exhibit 10.29
 
EIGHTH AMENDMENT
TO AMENDED AND RESTATED
CAPROLACTAM AND POLYMER SUPPLY AGREEMENT

THIS EIGHTH AMENDMENT TO AMENDED AND RESTATED CAPROLACTAM AND POLYMER SUPPLY AGREEMENT (this “Amendment”) is entered into as of February 22, 2018, by and between AdvanSix Resins & Chemicals LLC (“Seller”), and Shaw Industries Group, Inc., a Georgia corporation (“Buyer”).
Recitals

WHEREAS, on April 1, 2013, Seller and Buyer entered into that certain Amended and Restated Caprolactam and Polymer Supply Agreement (as amended, the “Agreement”);
WHEREAS, the parties desire to amend certain provisions of the Agreement; and
WHEREAS, capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement.
Agreement

NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein, the parties, intending to be legally bound hereby, agree as follows:

		
	1.
	Section 1.2 (c) of the Agreement is deleted in its entirety, and inserted in lieu thereof is a new Section 1.2 (c), as follows:

“(c)    In addition to the purchase obligations set forth in Section 1.2 (a) and Section 1.2 (b) above, during the period [***], through [***], Buyer shall purchase from Seller, and Seller shall sell to Buyer, [***] ([***]) pounds of Product (the “[***] Supplemental Volume”) per calendar year. 
The resulting total product mix for the [***] ([***]) pounds is [***] ([***]) pounds of [***] Caprolactam [***] and [***] ([***]) pounds of [***] polymer.  Seller may substitute [***] polymer for [***] polymer. Seller may provide [***] Caprolactam as a substitute for polymer if both parties mutually agree.
		
	2.
	Section 2.1 of the Agreement is amended by adding the following to the end of Section 2.1 as follows:

“The price for each pound of [***] Caprolactam, included in the [***] Supplemental Volume shall be the sum of (a)  [***] ($[***]), plus (b) the Caprolactam Index Amount (as defined in Schedule 2.1(I)), which, may be a positive or a negative amount.

The price for each pound of [***] polymer included in the [***] Supplemental Volume shall be the sum of (a)  [***] ($[***]), plus (b) the Caprolactam Index Amount (as defined in Schedule 2.1(I)), which, may be a positive or a negative amount, plus (c) the [***] ($[***]) Polymer Adder as defined in Section 2.2, plus the Polymer Index Amount, which may be a positive or a negative amount, as defined in Schedule 2.1(II)”

Confidential Treatment Requested by AdvanSix Inc.
 

		
	3.
	All capitalized terms used, but not defined, herein shall have the meaning set forth in the Agreement.

		
	4.
	This Amendment may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement.

		
	5.
	Except as expressly modified in this Amendment, the Agreement remains in full force and effect.  The Agreement and this Amendment together constitute the entire agreement between the Parties with respect to the subject matter hereof, and supersede all prior agreements or understandings between the Parties as to the subject matter hereof.

[The Remainder of this Page has been Intentionally Left Blank]

Confidential Treatment Requested by AdvanSix Inc.
 

IN WITNESS WHEREOF, the parties have executed this Seventh Amendment to Caprolactam and Polymer Supply Agreement as of the date first above written.

	
			
	ADVANSIX RESINS & CHEMICALS LLC
	 
	SHAW INDUSTRIES GROUP, INC.

	 
	 
	 

	 
	 
	 

	By: /s/ Erin Kane
	 
	By: /s/ David Morgan

	Erin Kane
	 
	David Morgan

	President
	 
	Executive Vice President Operationsgaia-ex106_211.htm

Exhibit 10.6

BUSINESS LOAN AGREEMENT

 

	
Principal
	
 
	
Loan Date
	
 
	
Maturity
	
 
	
Loan No
	
 
	
Call / Coll
	
 
	
Account
	
 
	
Officer
	
 
	
Initials

	
$13,500,000.00
	
 
	
12-28-2017
	
 
	
12-28-2020
	
 
	
15525533871
	
 
	
1E1 / 150
	
 
	
 
	
 
	
melinc
	
 
	
 

References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing "***" has been omitted due to text length limitations.

 

	
Borrower:
	
 
	
Boulder Road LLC, a Colorado limited liability company

833 W South Boulder Rd Louisville, CO   80027
	
 
	
Lender:
	
 
	
GREAT WESTERN BANK

Boulder West End 1900 Ninth St

Boulder, CO   80302

 

THIS BUSINESS LOAN AGREEMENT dated December 28, 2017, is made and executed between Boulder Road LLC, a Colorado limited liability company ("Borrower") and GREAT WESTERN BANK ("Lender") on the following terms  and conditions. Borrower has received prior commercial loans from Lender or has applied to Lender for a commercial loan or loans or other financial accommodations, including those which may be described on any exhibit or schedule attached to this Agreement. Borrower understands and  agrees  that:  (A)  in  granting,  renewing, or extending any Loan, Lender is relying upon Borrower's representations, warranties, and agreements  as set forth in this Agreement;  (B)   the granting, renewing, or extending of any Loan by Lender at all times shall   be subject to Lender's sole judgment and discretion; and (C) all such Loans shall be and remain subject to the  terms and conditions of this Agreement.

TERM.  This Agreement shall be effective as of December 28, 2017, and shall continue in full force and effect until such   time as all of Borrower's Loans in favor of Lender have been paid in full, including principal, interest, costs, expenses, attorneys' fees, and other fees and charges, or until such time as the parties may agree in writing to terminate this Agreement.

ADVANCE AUTHORITY. The following person or persons are authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority: Paul Tarell, Chief Financial Officer of GAIA, INC., a Colorado corporation, Sole Member and Manager of Boulder Road LLC, a Colorado limited liability company.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial Advance and each subsequent Advance under this Agreement shall be subject to the fulfillment to Lender's satisfaction of all of the conditions set forth in  this Agreement and in the Related Documents.

Loan Documents. Borrower shall provide to Lender the  following  documents  for  the  Loan:  (1)  the  Note;  (2) Security Agreements granting to Lender security interests in the Collateral; (3) financing statements and all other documents perfecting Lender's Security Interests; (4) evidence of insurance as required below; (5) guaranties; (6) together with all such Related Documents as Lender may require for the Loan; all in form and substance satisfactory to Lender and Lender's counsel.

Borrower's Authorization. Borrower shall have provided in form and substance satisfactory to  Lender properly  certified resolutions, duly authorizing the execution and delivery of this Agreement, the Note and the Related  Documents. In addition, Borrower shall have provided such other resolutions, authorizations, documents and  instruments as Lender or its counsel, may require.

Payment of Fees and Expenses. Borrower shall have paid to Lender all fees, charges, and other expenses which are then due and payable as specified in this Agreement or any Related Document.

Representations and Warranties. The representations and warranties set forth in this Agreement, in the Related Documents, and in any document or certificate delivered to Lender under this Agreement are true and correct.

No Event of Default. There shall not exist at the time of any Advance a condition which would constitute an Event of Default under this Agreement or under any Related Document.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness exists:

Organization. Borrower is a limited liability company which is, and at all times shall be, duly organized, validly existing, and in good standing under and by virtue of the laws of the State of Colorado. Borrower is duly authorized to transact business in all other states in which Borrower is doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which Borrower is doing business. Specifically, Borrower is, and at all times  shall be, duly qualified as a foreign limited liability company in all states in which the failure to so qualify would have a material adverse effect on its business or financial condition. Borrower has the full power and authority to own its properties and to transact the business in which it is presently engaged or presently proposes to engage. Borrower maintains an office at 833 W South Boulder Rd, Louisville, CO 80027. Unless Borrower has designated otherwise in writing, the principal office is the office at which Borrower keeps its books and records including its records concerning the Collateral. Borrower will notify Lender prior to any change in the location of Borrower's state of organization or any change in Borrower's name. Borrower shall do all things necessary to preserve and to keep in full force and effect its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to Borrower and Borrower's business activities.

Assumed Business Names. Borrower has filed or recorded all documents or filings required by law relating to all assumed business names used by Borrower. Excluding the name of Borrower, the following is a complete list of all assumed business names under which Borrower does business:  None.

Authorization. Borrower's execution, delivery, and performance of  this  Agreement and all the Related  Documents have been duly authorized by all necessary action by Borrower and do not conflict with, result in a violation of, or constitute a default under   (1)   any provision of   (a)   Borrower's articles of organization or membership agreements, or

(b)  any agreement or other instrument binding upon Borrower or  (2)   any law, governmental regulation, court decree,  or order applicable to Borrower or to Borrower's properties.

Financial Information. Each of Borrower's financial statements supplied to Lender truly and completely disclosed Borrower's financial condition as of the date of the statement, and there has been no material adverse change in Borrower's financial condition subsequent to the date of the most recent financial statement supplied  to  Lender. Borrower has no material contingent obligations except as disclosed in such financial statements.

Legal Effect. This Agreement constitutes, and any instrument or agreement Borrower is required to give under this Agreement when delivered will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms.

Properties.  Except as contemplated by this Agreement or as previously disclosed in Borrower's financial statements or in writing to Lender and as accepted by Lender, and except for property tax liens for taxes not presently due and payable, Borrower owns and has good title to all of Borrower's properties free and clear of all Security Interests, and has not executed any security documents or financing statements relating to such properties.  All of Borrower's properties  are titled in Borrower's legal name, and Borrower has not used or filed a financing statement under any other name for at least the last five (5) years.

Hazardous Substances. Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (1) During the period of Borrower's ownership of the Collateral, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person   on, under, about or from any of the Collateral. (2) Borrower has no knowledge of, or reason to believe that there has been (a) any breach or violation of any Environmental Laws; (b) any  use,  generation,  manufacture,  storage,  treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Collateral by any prior owners or occupants of any of the Collateral; or  (c)   any actual or threatened litigation or claims of any   kind by any person relating to such matters. (3) Neither Borrower nor any tenant, contractor, agent or other authorized user of any of the Collateral shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from any of the Collateral; and any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations, and ordinances, including without limitation all Environmental Laws. Borrower authorizes Lender and its agents to enter upon the Collateral to make such inspections and tests as Lender may deem appropriate to determine compliance of the Collateral with this section of the Agreement. Any inspections or tests made by Lender shall be at Borrower's expense and for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Borrower or to any other person. The representations and warranties contained herein are based on Borrower's due diligence in investigating the Collateral for hazardous waste and Hazardous Substances. Borrower hereby (1) releases and waives  any  future  claims  against  Lender  for  indemnity or contribution in the event Borrower becomes liable for cleanup or other costs under any such laws, and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities,  damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section  of the Agreement or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the 

Collateral. The provisions of this section of the Agreement, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the termination, expiration or satisfaction of this Agreement and shall not be affected by Lender's acquisition of any interest in any of the Collateral, whether by foreclosure or otherwise.

Litigation and Claims.  No litigation, claim, investigation, administrative proceeding or similar action (including those   for unpaid taxes) against Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower's financial condition or properties, other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by Lender in writing.

Taxes. To the best of Borrower's knowledge, all of Borrower's tax returns and reports that are or were required to be filed, have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently being or to be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided.

Lien Priority. Unless otherwise previously disclosed to Lender in writing, Borrower has not entered into or granted any Security Agreements, or permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing repayment of Borrower's Loan and Note, that would be prior or that may in any way be superior to Lender's Security Interests and rights in and to such Collateral.

Binding Effect. This Agreement, the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers thereof, as well as upon their successors, representatives and assigns, and are legally enforceable in accordance with their respective terms.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, so long as this  Agreement remains  in effect, Borrower will:

Notices of Claims and Litigation. Promptly inform Lender in writing of  (1)  all  material  adverse  changes  in Borrower's financial condition, and (2) all existing and all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower or any Guarantor which could materially affect the financial condition of Borrower or the financial condition of any Guarantor.

Financial Records.  Maintain its books and records in accordance with GAAP, applied on a consistent basis, and  permit Lender to examine and audit Borrower's books and records at all reasonable times.

Financial Statements.   Furnish Lender with the following:

Additional Requirements.

Rent Rolls: As soon as available, but in no event later than forty five (45) days after December 31st (12/31) and June 30th (6/30) of each year, a complete and accurate rent roll of all tenants of the properties located at 833   West

South Boulder Road, Louisville, CO 80027, including names, addresses, rents paid/due, lease commencement and expiration dates, and other information requested by Borrower for the most recent reporting period most recently ended.   Said report shall be prepared by Borrower in a format reasonably acceptable to Lender.

Annual Financial Statements. As soon as available, but in no event later than forty-five (45) days after FYE, Borrowers Balance Sheet and Income Statement for the period ended, prepared by Borrower. As soon as available, but in no event later than forty-five (45) days after FYE, GAIA, Inc.’s Balance Sheet and Income Statement for the period ended, prepared by GAIA, Inc.

All financial reports required to be provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent basis, and certified by Borrower as being true and correct.

Additional Information.  Furnish such additional information and statements, as Lender may request from time to time.

Additional Requirements.

Debt Service Coverage Ratio (Commercial Real Estate – Property Specific) – Post- Distribution. Maintain a minimum Debt Service Coverage Ratio of 1.20 to 1.00 as of the end of each calendar year period. “Debt Service Coverage Ratio - Post-Distribution” means, Borrower's EBIDA after distributions plus contributions, divided by the sum of the following for a stated period: interest expense and the current principal portion of long term debt. The financial information for the following described property(ies) shall be included in the calculation of the ratio: The 3 building office complex located at 833 West South Boulder Road, Louisville, CO 80027

Borrower will maintain its primary operating accounts with Lender for the life of the loan.

The subject loan to Borrower shall receive a 0.50% interest rate reduction for the next calendar quarter if the previous quarter’s average deposit balances exceed $15,000,000 combined for Boulder Road LLC and GAIA, Inc.

Borrower will pay an “Unused Line Fee” of $30,000 for each calendar year if it does not meet the Minimum Interest Requirement for such calendar year, which shall be measured beginning December 31, 2018. Minimum Interest Requirement defined as a minimum $15,000.00 interest accrued and paid to Lender during a calendar year.

Advances will be limited to the following using a Borrowing Base Certificate to be measured January 1st and July 1st of each year:

1.Maximum credit of $13,500,000.00 to be reduced by $500,000.00 semi-annually beginning June 30, 2018, and then an additional reduction of $500,000.00 every December 31 and June 30 following that date.

2.A minimum 10% debt yield (or 10x the average of the previous 2 years Net Operating Income) for Borrower's previous 2 year average.

Insurance. Maintain fire and other risk insurance, public liability insurance, and such other insurance as Lender may require with respect to Borrower's properties and operations, in form, amounts, coverages and with insurance companies acceptable to Lender. Borrower, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Borrower or any other person. In connection with all policies covering assets in which Lender holds or is offered a security interest for the Loans, Borrower will provide Lender with such lender's loss payable or other endorsements as Lender may require.

Insurance Reports. Furnish to Lender, upon request of Lender,  reports  on each existing insurance policy showing  such information as Lender may reasonably request, including without limitation the following: (1) the name of the insurer; (2) the risks insured;  (3)  the  amount  of  the  policy;  (4)  the  properties  insured;  (5)  the  then  current property values on the basis of which insurance has been obtained, and the manner of determining those values; and

(6) the expiration date of the policy. In addition, upon request of Lender (however not more often than annually), Borrower will have an independent appraiser satisfactory to Lender determine, as applicable, the actual cash value or replacement cost of any Collateral.   The cost of such appraisal shall be paid by Borrower.

Guaranties. Prior to disbursement of any Loan proceeds, furnish executed guaranties of the Loans in favor of Lender, executed by the guarantor named below, on Lender's forms, and in the amount and under the conditions set forth in those guaranties.

 

		
	
Name of Guarantor
	
Amount

	
GAIA, INC., a Colorado corporation
	
Unlimited

 

Other Agreements. Comply with all terms and conditions of all other agreements,  whether  now  or  hereafter existing, between Borrower and any other party and notify Lender immediately in writing of any default in connection with any other such agreements.

Loan Proceeds. Use all Loan proceeds solely for Borrower's business operations, unless specifically consented to the contrary by Lender in writing.

Taxes, Charges and Liens. Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments, taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the date on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrower's properties, income, or profits. Provided  however, Borrower will not be required to pay and discharge any such assessment, tax, charge, levy, lien or claim so long as (1) the legality of the same  shall  be  contested  in  good  faith  by  appropriate  proceedings,  and  (2) Borrower shall have established on Borrower's books adequate reserves with respect to such contested assessment, tax, charge, levy, lien, or claim in accordance with GAAP.

Performance. Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the Related Documents, and in all other instruments and agreements between Borrower and Lender.

Borrower shall notify Lender immediately in writing of any default in connection with any agreement.

Operations. Maintain executive and management personnel with substantially the same qualifications and  experience as the present executive and management personnel; provide written notice to Lender of any change in executive and management personnel; conduct its business affairs in a reasonable and prudent manner.

Environmental Studies. Promptly conduct and complete, at Borrower's expense, all such investigations, studies, samplings and testings as may be requested by Lender or any governmental authority relative to any substance, or any waste or by-product of any substance defined as toxic or a hazardous substance under applicable federal, state, or local law, rule, regulation, order or directive, at or affecting any property or any facility owned, leased or used by Borrower.

Compliance with Governmental Requirements. Comply with all laws, ordinances, and regulations, now  or hereafter in effect, of all governmental authorities applicable to the conduct of Borrower's properties, businesses and operations, and to the use or occupancy of the Collateral, including without limitation, the Americans With Disabilities Act. Borrower may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Borrower has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Collateral are not jeopardized. Lender may require  Borrower to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.

Inspection. Permit employees or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower's other properties and to examine or audit Borrower's books, accounts, and records and to make copies and memoranda of Borrower's books, accounts, and records. If Borrower now or at  any time  hereafter maintains any records (including without limitation computer generated records and computer software programs for the generation of such records) in the possession of a third party, Borrower, upon request of Lender, shall notify such party to permit Lender free access to such records at all reasonable times and to provide Lender with copies of any records it may request, all at Borrower's expense.

Environmental Compliance and Reports. Borrower shall comply in all respects with any and all Environmental Laws; not cause or permit to exist, as a result of an intentional or unintentional action or omission on Borrower's part or on the part of any third party, on property owned and/or occupied by Borrower, any environmental activity where damage may result to the environment, unless such environmental activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal, state or local governmental authorities; shall furnish to Lender promptly and in any event within thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation, directive, letter or other communication from any governmental agency or instrumentality concerning any intentional or unintentional action or omission on Borrower's part in connection with any environmental activity whether or not there is damage to the environment and/or other natural resources.

Additional Assurances. Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, assignments, financing statements, instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure the Loans and to perfect all Security Interests.

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Collateral or if Borrower fails to comply with any provision of this Agreement or any Related Documents, including but not limited to Borrower's failure to discharge or pay when due any amounts Borrower is required to discharge or pay under this Agreement or any Related Documents, Lender on Borrower's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on any Collateral and paying all costs for insuring, maintaining and preserving any Collateral. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Borrower. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either  (1)  the term of any applicable insurance policy; or   (2)   the remaining term of   the Note; or   (C)   be treated as a balloon payment which will be due and payable at the Note's maturity.

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower shall not, without the prior written consent of Lender:

Indebtedness and Liens. (1) Except for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this Agreement, create, incur or assume indebtedness for borrowed money, including capital leases, (2) sell, transfer, mortgage, assign, pledge, lease, grant a security interest  in,  or  encumber  any  of Borrower's assets (except as allowed as Permitted Liens), or (3)  sell with recourse any of Borrower's accounts,  except to Lender.

Continuity of Operations. (1) Engage in any business activities substantially  different  than  those  in  which Borrower is presently engaged,  (2)  cease operations, liquidate, merge, transfer, acquire or consolidate with any  other entity, change its name, dissolve or transfer or sell Collateral out of the ordinary course of business, or  (3)  make any distribution with respect to any capital account, whether by reduction of capital or otherwise.

Loans, Acquisitions and Guaranties. (1) Loan, invest in or advance money or assets to any other  person, enterprise or entity, (2) purchase, create or acquire any interest in any other enterprise or entity, or (3) incur any obligation as surety or guarantor other than in the ordinary course of business.

Agreements. Enter into any agreement containing any provisions which would be violated or breached by the performance of Borrower's obligations under this Agreement or in connection herewith.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor is in default under the terms of this Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender;  (B)  Borrower or any Guarantor  dies, becomes incompetent or becomes insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse change in Borrower's financial condition, in the financial condition of any Guarantor, or in the value of any Collateral securing any Loan; or   (D)   any Guarantor seeks, claims or otherwise

attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any other loan with Lender; or  (E)   Lender   in good faith deems itself insecure, even though no Event of Default shall have occurred.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's  accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the Indebtedness against any and all such accounts.

DEFAULT.   Each of the following shall constitute an Event of Default under this Agreement:

Payment Default.   Borrower fails to make any payment when due under the Loan.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's or any Grantor's property or Borrower's or any Grantor's ability to repay the Loans or perform their respective obligations under this Agreement or any of the Related Documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

Death or Insolvency. The dissolution of Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrower's existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

Defective Collateralization. This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the Loan. This includes a garnishment of any of Borrower's accounts,  including  deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the  prospect of payment or performance of the Loan is impaired.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related Documents, all commitments and obligations of Lender under this Agreement or the Related Documents or any other agreement immediately will terminate (including any obligation to make further Loan Advances or disbursements), and, at Lender's option, all Indebtedness immediately will become due and payable, all without notice of any kind to Borrower, except that in the case of an Event of Default of the type described in the "Insolvency" subsection above, such acceleration shall be automatic and not optional. In addition, Lender shall have all the rights and remedies provided in the Related Documents or available at law, in equity, or otherwise. Except  as  may be  prohibited  by applicable law, all of Lender's rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Borrower or of any Grantor shall not affect Lender's right to declare a default and to exercise its rights and remedies.

MISCELLANEOUS PROVISIONS.   The following miscellaneous provisions are a part of this Agreement:

Amendments. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

Attorneys' Fees; Expenses. Borrower agrees to pay upon demand all of Lender's reasonable costs and expenses, including Lender's attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement, and Borrower shall pay the reasonable costs and expenses of such enforcement. Costs and  expenses include  Lender's attorneys' fees and  legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services.  Borrower also shall pay all court costs and such  additional fees as may be  directed by the court.

Caption Headings.  Caption headings in this Agreement are for convenience purposes only and are not to be used  to interpret or define the provisions of this Agreement.

Consent to Loan Participation.   Borrower agrees and consents to Lender's sale or transfer, whether now or later, of one or more participation interests in the Loan to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy Borrower may have with respect to such matters. Borrower additionally waives any and all notices of sale of participation interests, as well as all notices of any repurchase of such participation interests. Borrower also agrees that the purchasers of any such participation interests  will  be  considered as the absolute owners of such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the sale of such participation interests. Borrower further waives all rights of offset or counterclaim that it may have now or later against Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such purchaser may enforce Borrower's obligation under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan. Borrower further agrees that the purchaser of any such participation interests may enforce its interests irrespective of any personal claims or defenses that Borrower may have against Lender.

Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Colorado without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of Colorado.

Choice of Venue. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Boulder County, State of Colorado.

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall  not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Borrower, or between Lender and any Grantor, shall constitute a waiver of any of Lender's rights or of any of Borrower's or any Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

Notices. Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Borrower agrees to keep Lender informed at all times of Borrower's current address. Unless otherwise provided or required by law, if  there is more than one Borrower, any notice given by Lender to any Borrower is deemed to be notice given to all Borrowers.

Severability. If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance.   If feasible, the offending provision shall be considered modified so that  it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered  deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement.

Subsidiaries and Affiliates of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including without limitation any representation, warranty or covenant, the word "Borrower" as used in this Agreement shall include all of Borrower's subsidiaries and affiliates.  Notwithstanding the foregoing however, under  no circumstances shall this Agreement be construed to require Lender to make any Loan or other financial accommodation to any of Borrower's subsidiaries or affiliates.

Successors and Assigns.  All covenants and agreements by or on behalf of Borrower contained in this Agreement  or any Related Documents shall bind Borrower's successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Borrower shall not, however, have the right to assign Borrower's rights under this Agreement or any interest therein, without the prior written consent of Lender.

Survival of Representations and Warranties. Borrower understands and agrees that in extending Loan Advances, Lender is relying on all representations, warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to Lender under this Agreement or the Related Documents. Borrower further agrees that regardless of any investigation made by Lender, all such representations, warranties and covenants will survive the extension of Loan Advances and delivery to Lender of the Related Documents, shall be continuing in nature, shall be deemed made and redated by Borrower at the time each Loan Advance is made, and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur.

Time is of the Essence.   Time is of the essence in the performance of this Agreement.

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this  Agreement. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful  money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require.  Words and terms not otherwise defined in this Agreement shall have   the meanings attributed to such terms in the Uniform Commercial Code. Accounting words and terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with generally accepted accounting principles as in effect on the date of this Agreement:

Advance. The word "Advance" means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower's behalf on a line of credit or multiple advance basis under the terms and conditions of this Agreement.

Agreement. The word "Agreement" means this Business Loan Agreement, as this Business Loan Agreement may  be amended or modified from time to time, together with all exhibits and schedules attached to this Business Loan Agreement from time to time.

Borrower. The word "Borrower" means Boulder Road LLC, a Colorado limited liability company and includes all co-signers and co-makers signing the Note and all their successors and assigns.

Collateral.  The word "Collateral" means all property and assets granted as collateral security for a Loan, whether  real or personal property, whether granted directly or indirectly, whether granted now or in the future, and whether granted in the form of a security interest, mortgage, collateral mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien, charge, lien or title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever, whether created by law, contract, or otherwise.

Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes,  regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.

Event of Default. The words "Event of Default" mean any of the events of default set forth in this Agreement in the default section of this Agreement.

GAAP.   The word "GAAP" means generally accepted accounting principles.

Grantor. The word "Grantor" means each and all of the persons or entities granting a Security Interest in any Collateral for the Loan, including without limitation all Borrowers granting such a Security Interest.

Guarantor.  The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Loan.

Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a  guaranty of all or part of the Note.

Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and  petroleum by-products or any fraction thereof and asbestos.

Indebtedness. The word "Indebtedness" means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other indebtedness and costs and expenses for which Borrower is responsible under this Agreement or under any of the Related Documents.

Lender.   The word "Lender" means GREAT WESTERN BANK, its successors and assigns.

Loan. The word "Loan" means any and all loans and financial accommodations from Lender to Borrower whether  now or hereafter existing, and however evidenced, including without limitation those loans and financial accommodations described herein or described on any exhibit or schedule attached to this Agreement from time to time.

Note. The word "Note" means the Note dated December 28, 2017 and executed by Boulder Road LLC, a Colorado limited liability company in the principal amount of $13,500,000.00, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note or credit agreement.

Permitted Liens.  The words "Permitted Liens" mean  (1)   liens and security interests securing Indebtedness owed by Borrower to Lender; (2) liens for taxes, assessments, or similar charges either not yet due or being contested in good faith; (3) liens of materialmen, mechanics, warehousemen, or carriers, or other  like liens  arising  in  the  ordinary course of business and securing obligations which are not yet delinquent; (4) purchase money liens or purchase money security interests upon or in any property acquired or held by Borrower in the ordinary course of business to secure indebtedness outstanding on the date of this Agreement or permitted to be incurred under the paragraph of this Agreement titled "Indebtedness and Liens";   (5)   liens and security interests which, as of the date   of this Agreement, have been disclosed to and approved by the Lender in writing; and (6) those liens and security interests which in the aggregate constitute an immaterial and insignificant monetary amount with respect to the net value of Borrower's assets.

Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Loan.

Security Agreement. The words "Security Agreement" mean and include without limitation any agreements, promises, covenants, arrangements, understandings or other agreements, whether created by law, contract, or otherwise, evidencing, governing, representing, or creating a Security Interest.

Security Interest. The words "Security Interest" mean, without limitation, any and all types of collateral security, present and future, whether in the form of a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien or title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever whether created by law, contract, or otherwise.

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT  IS DATED DECEMBER 28,  2017.

BORROWER:

 

	
Boulder Road LLC, a Colorado limited liability company

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
GAIA, INC., a Colorado corporation, Manager of Boulder Road LLC, a Colorado limited liability company

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
 
	
Paul TarelI, Chief  Financial Officer of   GAIA, INC., a Colorado corporation

 

Addendum to Business Loan Agreement and Related Documents

This Addendum is made as of December_, 2017, to (i) the Business Loan Agreement dated December_, 2017 (the "Agreement") between Boulder Road LLC, a Colorado limited liability company ("Borrower") and Great Western Bank ("Lender"), (ii) the Promissory Note dated December_, 2017 (the "Note") issued by Borrower to Lender in the principal amount  of $13,500,000, (iii) the Commercial Guaranty dated December_, 2017 (the "Guaranty"), by GAIA, Inc. (the "Guarantor") in favor of Lender, (iv) the Deed of Trust dated December_, 2017 (the "Deed of Trust"), among Borrower, Lender and the Public Trustee of Boulder County Colorado,(v) the Assignment of Rents dated December_, 2017 (the "Assignment"), between Borrower and Lender, and (vi) the Corporate Resolution to Guarantee certified by Guarantor to Lender dated December_, 2017 (the "Corporate Resolution"). Capitalized terms used in this Addendum that are not defined in this Addendum have the same meanings as set forth in the Agreement.

Bank, Borrower and Guarantor hereby agree that:

	
 
	
1.
	
Notwithstanding anything to the contrary under the subsection titled Affirmative Covenants - Loan Proceeds in the Agreement, the loan proceeds may be used by Gaia, Inc. for its business operations.

	
 
	
2.
	
(a) The subsection titled Affirmative Covenants - Inspection in the Agreement is amended to add "following reasonable written notice to Borrower" after the phrase at "any reasonable time" in the first sentence of such subsection, and (b) the subsection titled Possession and Maintenance of the Property- Lender's Right to Enter in the Deed of Trust is amended to add "following reasonable prior written notice to Grantor" after the phrase "at all reasonable times" in the first sentence of such subsection.

	
 
	
3.
	
Clause (2) under the subsection titled Negative Covenants -  Indebtedness  and Liens in the  Agreement  is amended  and restated  in its entirety  to  read:  "sell, transfer, mortgage, assign, pledge, lease, grant a security interest in, or encumber any of  Borrower's assets (except (i) as allowed under Permitted Liens and (ii) for leases entered into in the  ordinary  course  of  business),".

	
 
	
4.
	
Clause (3) under the subsection titled Negative Covenants - Continuity of Operations in the Agreement is deleted in its entirety.

	
 
	
5.
	
Clause (E) under the section subsection titled Cessation of Advances in the Agreement is deleted  in  its entirety.

	
 
	
6.
	
Notwithstanding anything to the contrary under the subsection titled Default - Payment Default in the Agreement or any of the Related Documents, Borrower shall have a five-day grace period to cure any payment default before such default constitutes an Event of Default.

	
 
	
7.
	
(a) The default set forth under the subsection titled Default - Adverse Change in each of the Agreement and the Note is amended and restated in its entirety to read “A material adverse change occurs in Borrower’s financial condition" and (b) the default set forth under the subsection titled Events of Default - Adverse Change in the Guaranty and under the subsection titled Default - Adverse Change in the Assignment is amended and restated in its entirety to read "A material adverse change occurs in Grantor's/Guarantor's (as applicable) financial condition".

	
 
	
8.
	
The default set forth under the subsection titled Default - Insecurity in the Note is deleted in its entirety.

	
 
	
9.
	
The subsection titled Miscellaneous - Subsidiaries and Affiliates of Borrower in the Agreement is deleted in its entirety.

	
 
	
10.
	
Clause (H) under the section titled Guarantor's Representations and Warranties in the Guaranty is amended to add the phrase "other than litigation, claims, investigations, proceedings or similar actions arising in the ordinary course of business that would not reasonably be expected to have a material 

	
 
		
adverse effect on Guarantor's business or financial condition".

	
 
	
11.
	
The second sentence under the section titled Lender's Rights to Receive and Collect Rents in the Assignment is amended and restated in its entirety to read: "Lender is hereby given and granted the follow rights, powers and authority following the occurrence and during the continuance of an Event of Default:"

	
 
	
12.
	
The subsection of the Corporate Resolution titled "Actions Authorized - Execute Security Documents" is deleted in its entirety.

All other terms and conditions of the Agreement and Related Documents will remain unchanged.

IN WITNESS WHEREOF, Borrower, Guarantor and Bank have executed this Addendum as of  the  date first set forth above.

 

	
 
	
 
	
BORROWER:

	
 
	
 
	
 

	
 
	
 
	
Boulder Road LLC, a Colorado limited  liability

	
 
	
 
	
 

	
By:
	
 
	
GAIA, Inc. a Colorado corporation, as Manager of Boulder Road LLC, a Colorado limited liability  company

 

	
By:
	
 
	
 

	
Paul Tarell, Chief Financial Officer

	
 
	
 
	
 

	
GUARANTOR:

	
 
	
 
	
 

	
GAIA, Inc., a Colorado corporation

	
 
	
 
	
 

	
By:
	
 
	
 

	
Paul Tarell, Chief Financial Officer

	
 
	
 
	
 

	
LENDER:

	
 
	
 
	
 

	
Great Western Bank

	
 
	
 
	
 

	
By:
	
 
	
 

	
Authorized Officer

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