Horizon Kinetics Holding Corp 8-K, filed Jul 1, 2020

Horizon Kinetics Holding Corp (HKHC)

8-K 2020-07-01 For: 2020-06-25

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Added on April 04, 2026

About this 8-K

Horizon Kinetics Holding Corp filed this 8-K on July 1, 2020, reporting on events of June 25, 2020.

Items reported

Item 1.01: Entered into a material agreement
Item 1.02: Ended a material agreement
Item 2.01: Completed an acquisition or sale of assets
Item 2.02: Financial results
Item 5.02: Director or officer change, or executive pay
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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8400 E. Crescent Parkway, Suite 450, Greenwood Village, CO		80111
(Address of principal executive offices)		(Zip Code)

	Title of each class		Trading Symbol		Name of exchange on which registered
	None		None		None

Item 9.01		Financial Statements and Exhibits.
(d)	Exhibits.


Exhibit No.		Description
2.1		Asset Purchase Agreement, dated June 25, 2020.
2.2		Loan and Security Agreement, dated July 1, 2020.
10.1		Amendment to Employee At Will, Non-Disclosure, Non-Compete and Development Assignment Agreement, dated June 25, 2020.
99.1		Scott’s Liquid Gold-Inc. press release, dated July 1, 2020.
99.2		Scott’s Liquid Gold-Inc. press release, dated July 1, 2020.
99.3		Biz and Dryel Brands Investor Relations Slide Deck.

			SCOTT’S LIQUID GOLD-INC.

Date:	July 1, 2020	By:	/s/ Mark E. Goldstein
			Mark E. Goldstein
			President and Chief Executive Officer

			Page
Article I. DEFINITIONS			1
Article II. PURCHASE AND SALE OF ASSETS			7
	2.1	Sale and Transfer of Assets	7
	2.2	Retained Assets	9
	2.3	Assignability and Consents	10
Article III. LIABILITIES			10
	3.1	Assumption of Liabilities	10
	3.2	Retained Liabilities	10
Article IV. PURCHASE PRICE			10
	4.1	Purchase Price	10
	4.2	Settlements	11
	4.3	Purchase Price Allocation	11
	4.4	Purchase Price Adjustment	11
	4.5	Earn-Out	12
Article V. CLOSING AND DELIVERIES			14
	5.1	Closing	14
	5.2	Documents to be Delivered by Sellers	14
	5.3	Documents to be Delivered by Buyer	15
Article VI. REPRESENTATIONS AND WARRANTIES OF SELLERS			16
	6.1	Organization and Standing	16
	6.2	Authorization, Validity and Effect	16
	6.3	No Conflict; Required Filings and Consents	16
	6.4	Financial Statements	17
	6.5	Taxes	17
	6.6	Title	17
	6.7	Compliance with Laws	17
	6.8	Permits	18
	6.9	Contracts	18
	6.10	Legal Proceedings	18
	6.11	Intellectual Property	18
	6.12	Insurance	20
	6.13	Environmental Matters	20
	6.14	Conduct of Business in Ordinary Course	21
	6.15	Customers and Suppliers	21
	6.16	No Brokers	22
	6.17	Product Warranty	22
	6.18	Foreign Corrupt Practices Act	22
	6.19	Export Controls	22
	6.20	Disclaimer	23

			Page
Article VII. REPRESENTATIONS AND WARRANTIES OF BUYER			23
	7.1	Organization and Standing	23
	7.2	Authorization, Validity and Effect	23
	7.3	No Conflict; Required Filings and Consents	23
	7.4	No Reliance; Disclaimer	24
	7.5	Financing	24
	7.6	No Brokers	24
Article VIII. COVENANTS AND AGREEMENTS			25
	8.1	Interim Operations of the Business	25
	8.2	Confidentiality; Access to Information	26
	8.3	Transfer and Property Taxes	26
	8.4	Publicity	27
	8.5	Records	27
	8.6	Further Assurances and Assistance	27
	8.7	Representations and Warranties Insurance Policy	27
	8.8	Cooperation for Accounting Audits	28
	8.9	Responsibility to Update and Disclosure	28
	8.10	Commercially Reasonable Efforts; Cooperation	28
	8.11	Debt Financing	29
Article IX. CONDITIONS TO CLOSING			30
	9.1	Conditions to Obligations of the Parties	30
	9.2	Conditions to Obligations of Sellers	30
	9.3	Conditions to Obligations of Buyer	31
	9.4	Frustration of Closing Conditions	31
Article X. TERMINATION OF AGREEMENT			31
	10.1	Termination	31
	10.2	Effect of Termination	32
Article XI. REMEDIES			32
	11.1	Survival	32
	11.2	Indemnification by Buyer	33
	11.3	Indemnification by Sellers	33
	11.4	Exclusive Remedy	33
	11.5	Limitations on Indemnification Payments by Sellers	33
	11.6	Procedures	34
	11.7	Specific Performance	35
	11.8	Adjustment to Purchase Price	35
Article XII. TAX MATTERS			35
	12.1	Cooperation; Audits	35
Article XIII. MISCELLANEOUS AND GENERAL			35
	13.1	Expenses	35
	13.2	Successors and Assigns	36
	13.3	Third Party Beneficiaries	36

		Page
13.4	Notices	36
13.5	Complete Agreement	37
13.6	Captions	37
13.7	Amendment	37
13.8	Waiver	37
13.9	Governing Law; Jurisdiction	37
13.10	Waiver of Jury Trial	37
13.11	Severability	38
13.12	Counterparts	38
13.13	Time Periods	38
13.14	Construction	38
13.15	Non-Recourse	38

Exhibit A	Form of Bill of Sale
Exhibit B	Form of Transition Services Agreement
Exhibit C	Form of Restrictive Covenant Agreement
Exhibit D	Form of Trademark Assignment
Exhibit E	Form of Patent Assignment
Exhibit F	Representations and Warranties Insurance Policy
Exhibit G	Form of Assignment and Assumption Agreement
Exhibit H	Financing Letter
Exhibit I	Covenant Not To Sue Agreement

CR BRANDS, INC.
By:	/s/ A. Malachi Mixon IV
		Name:	A. Malachi Mixon IV
		Title:	Secretary and Treasurer
SWEEP ACQUISITION COMPANY
By:	/s/ A. Malachi Mixon IV
		Name:	A. Malachi Mixon IV
		Title:	Secretary and Treasurer
SLG CHEMICALS, INC.
By:	/s/ Kevin A. Paprzycki
		Name:	Kevin A. Paprzycki
		Title:	Chief Financial Officer

ARTICLE I - DEFINITIONS		1
Section 1.1	Definitions	1
Section 1.2	UCC Terms	19
Section 1.3	Accounting Terms and Determinations	19
Section 1.4	Interpretative Provisions	20
ARTICLE II - LOANS		20
Section 2.1	Revolving Loans	20
Section 2.2	Requests for Revolving Loans	20
Section 2.3	Term Loan	21
Section 2.4	Repayment of the Loans	21
Section 2.5	Disbursement of Loans	22
Section 2.6	Deemed Requests for Loans to Pay Required Payments	22
ARTICLE III - GENERAL LOAN PROVISIONS; FEES AND EXPENSES		22
Section 3.1	Interest	22
Section 3.2	Fees and Expenses	22
Section 3.3	Manner of Payment	23
Section 3.4	Termination of Agreement or Facility	23
Section 3.5	Evidence of Debt	24
Section 3.6	Changes in Capital Adequacy Regulations	24
Section 3.7	Lender Statements; Survival of Indemnity	24
Section 3.8	Maximum Interest; Controlling Limitation	24
ARTICLE IV - CONDITIONS PRECEDENT		25
Section 4.1	Conditions Precedent	25
Section 4.2	Conditions to Subsequent Advances	27
ARTICLE V - REPRESENTATIONS AND WARRANTIES OF BORROWERS		28
Section 5.1	Representations and Warranties	28
Section 5.2	Survival of Representations	31
ARTICLE VI - SECURITY INTEREST AND COLLATERAL COVENANTS		32
Section 6.1	Security Interest	32
Section 6.2	Collection of Accounts and Proceeds of Collateral	32
Section 6.3	Verification of Accounts	32
Section 6.4	Disputes, Returns and Adjustments	33
Section 6.5	Invoices	33

Section 6.6	Ownership; Defense of Title	33
Section 6.7	Locations; Organizational Information; Inventory	33
Section 6.8	Records Relating to Collateral	33
Section 6.9	Inspection; Field Exams	34
Section 6.10	Maintenance	34
Section 6.11	Appraisals	34
Section 6.12	Preservation of Lender’s Rights	34
Section 6.13	Perfection and Protection of Lender’s Security Interest	35
Section 6.14	Power of Attorney	35
ARTICLE VII - AFFIRMATIVE COVENANTS		36
Section 7.1	Preservation of Existence and Similar Matters	36
Section 7.2	Compliance with Applicable Law	36
Section 7.3	Conduct of Business	36
Section 7.4	Payment of Taxes and Claims	36
Section 7.5	Accounting Methods and Financial Records	36
Section 7.6	Hazardous Waste and Substances; Environmental Requirements	36
Section 7.7	Accuracy of Information	36
Section 7.8	Revisions or Updates to Schedules	36
Section 7.9	ERISA	37
Section 7.10	Insurance	37
Section 7.11	Payroll Taxes	37
Section 7.12	Notice of Certain Matters	37
Section 7.13	Deposit Accounts	38
Section 7.14	Post-Closing Obligations	38
ARTICLE VIII - FINANCIAL AND COLLATERAL REPORTING		38
Section 8.1	Financial Statements	38
Section 8.2	Compliance Certificate	39
Section 8.3	Collateral Information and Reports	39
ARTICLE IX - NEGATIVE COVENANTS		40
Section 9.1	Financial Covenants	40
Section 9.2	Restricted Payments	41
Section 9.3	Debt	41
Section 9.4	Liens	41

Section 9.5	Loans	41
Section 9.6	Merger, Division, Consolidation, Sale of Assets, Acquisitions	41
Section 9.7	Transactions with Affiliates	41
Section 9.8	Contingent Liabilities	41
Section 9.9	Operating Leases	41
Section 9.10	Benefit Plans	41
Section 9.11	Sales and Leasebacks	42
Section 9.12	Organizational Documents	42
Section 9.13	Investments	42
Section 9.14	Amendments	42
Section 9.15	No Restrictions on Subsidiary Distributions	42
Section 9.16	Collateral Locations	42
Section 9.17	Patriot Act	42
Section 9.18	Sanctions	42
Section 9.19	Use of Proceeds	42
ARTICLE X - DEFAULT AND REMEDIES		43
Section 10.1	Events of Default	43
Section 10.2	Remedies	44
Section 10.3	Application of Proceeds	45
Section 10.4	Miscellaneous Provisions Concerning Remedies	45
Section 10.5	Trademark License	45
ARTICLE XI - MISCELLANEOUS		46
Section 11.1	Notices	46
Section 11.2	Expenses	47
Section 11.3	Setoff	47
Section 11.4	Venue; Service of Process	48
Section 11.5	Assignment; Participation	48
Section 11.6	Amendments and Waivers	48
Section 11.7	Performance of Loan Parties’ Duties	48
Section 11.8	Indemnification	49
Section 11.9	All Powers Coupled with Interest	49
Section 11.10	Severability of Provisions	49
Section 11.11	GOVERNING LAW	49

Section 11.12	California Jury Trial Waiver	49
Section 11.13	Counterparts; Integration	51
Section 11.14	Time is of the Essence	52
Section 11.15	Waiver of Consumer Rights	52
Section 11.16	Payments Set Aside	52
Section 11.17	Waiver of Consequential Damages; Etc	52
Section 11.18	Protective Advances by Lender	52
Section 11.19	Subordination of Intercompany Indebtedness	53
Section 11.20	Patriot Act Notice	54
Section 11.21	Press Releases and Related Matters	54
Section 11.22	Suretyship Provisions and Waivers	54
Section 11.23	Borrower Agent.	54
Section 11.24	Sub-license of Intellectual Property	55

EXHIBITS AND SCHEDULES
EXHIBIT A	Borrowing Base Certificate
EXHIBIT B	Compliance Certificate
EXHIBIT C	Suretyship Provisions and Waivers

Schedule 1.1	Tort Claims
Schedule 5.1(a)	Organization; Power; Qualification
Schedule 5.1(c)	Subsidiaries, Parents and Affiliates; Capitalization
Schedule 5.1(i)	Debt and Contingent Liabilities
Schedule 5.1(j)	Litigation
Schedule 5.1(m)	ERISA
Schedule 5.1(p)	Locations of Inventory and Equipment
Schedule 5.1(q)	Place of Business
Schedule 5.1(r)	Corporate and Fictitious Names; Trade Names
Schedule 5.1(s)	Intellectual Property
Schedule 5.1(w)	Deposit Accounts
Schedule 5.1(y)	Material Agreements
Schedule 9.3	Permitted Debt
Schedule 9.4	Permitted Liens

	-i-

	-ii-

	-iii-

	-iv-

Month Ending Period	Add Back Amount
June 30, 2019	$309,000
July 31, 2019	$334,000
August 31, 2019	$280,000
September 30, 2019	$301,000
October 31, 2019	$298,000
November 30, 2019	$218,000
December 31, 2019	$78,000
January 31, 2020	$324,000
February 29, 2020	$213,000
March 31, 2020	$366,000
April 30, 2020	$183,000
May 31, 2020	$183,000
June 30, 2020	$201,000


If to Loan Parties:	c/o Scott’s Liquid Gold-Inc. 8400 E. Crescent Parkway, Suite 450 Greenwood Village, Colorado 80111 Attention: Kevin Paprzycki, Chief Financial Officer with a complete copy (which shall not constitute notice) to: Holland & Hart LLP 555 17th Street, Suite 3200 Denver, Colorado 80202 Attention: Amy Bowler
If to Lender:	UMB Bank, N.A. Premier Place, Suite 1900 5910 N. Central Expressway Dallas, Texas 75206 Attention: Portfolio Manager, URGENT Facsimile No.: (214) 389-5901
	with a complete copy to:
	UMB Bank, N.A. 333 South Grand Avenue, Suite 2200 Los Angeles, California 90071 Fax No. (213) 625-8147 Attention: Portfolio Manager, URGENT
	with a complete copy (which shall not constitute notice) to:


	Sheppard, Mullin, Richter & Hampton LLP 333 South Hope Street, 43rd Floor Los Angeles, CA 90071 Attention: Kyle Mathews Facsimile No.: (213) 443-2811