Document:

exh10-1_agmt.htm

     

    
      

      

    

     

     

     

     

     

     

     

     

    EXHIBIT 10.1

     

    ASSIGNMENT AND ASSUMPTION AGREEMENT

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSIGNMENT
AND ASSUMPTION AGREEMENT

    

    THIS
ASSIGNMENT AND ASSUMPTION AGREEMENT is made as of the 31st day of December,
2008, by and between M&W FIBERGLASS, LLC, a Wisconsin limited liability
company (“M&W”), ADVANCED FIBERGLASS TECHNOLOGIES, INC., a Wisconsin
corporation (“AFT”), and JAMIE L. MANCL AND JENNIFER MANCL (the “Mancls”) and
NEKOOSA PORT EDWARDS STATE BANK (the “Original Purchaser”) and NEKOOSA PORT
EDWARDS STATE BANK (the “Trustee”).

    

    WHEREAS,
AFT proposes to buy substantially all of the assets owned by M&W and assume
all rights and responsibilities of M&W under (i) that certain Bond Agreement
dated as of February 28, 2007 (the “Bond Agreement”) by and among the City of
Wisconsin Rapids, Wisconsin (the “Issuer”), M&W, AFT, the Mancls, the
Trustee and the Original Purchaser pursuant to which the Issuer issued its
$4,000,000 Industrial Development Revenue Bonds, Series 2007A, 2007B and 2007C
(Advanced Fiberglass Technologies Project) (the “Bonds”), (ii) that certain
Credit Agreement dated as of February 28, 2007 (the “Credit Agreement”) by and
among AFT, M&W, the Mancls and Original Purchaser, and (iii) all of the
documents and agreements relating thereto; and

    

    WHEREAS,
Section 6.11 of the Bond Agreement allows M&W to dispose of all or
substantially all of its assets and thereafter be released from its obligations
under the Bond Agreement and the Bonds if: (i) the resulting, surviving or
transferee legal entity, as the case may be, is a legal entity established and
duly existing under the laws of one of the states of the United States of
America; (ii) such resulting, surviving or transferee legal entity expressly
assumes in writing all of the obligations of M&W contained in the Bond
Agreement and the Security Documents (as such term is defined in the Bond
Agreement); (iii) the Original Purchaser while it remains a Bondowner shall have
consented in writing to such transaction; and (iv) the resulting, surviving or
transferee entity shall have net assets immediately following such transaction
at least equal to or greater than that of M&W immediately prior to such
transaction;

    

    WHEREAS,
M&W is a party to the Bond Agreement, the Credit Agreement and those
agreements described in Schedule 1 attached
hereto (collectively, the “Assumed Contracts”); and

    

    WHEREAS,
M&W wishes to assign its interest in the Assumed Contracts to AFT, and AFT
wishes to accept such assignment and to assume all of M&W’s obligations and
liabilities under the Assumed Contracts; and

    

    WHEREAS,
the Original Purchaser has consented pursuant to Section 6.11 of the Bond
Agreement to the transfer of substantially all of the assets of M&W to AFT
and the assumption of the obligations of M&W by AFT under the Assumed
Contracts, on the terms set forth herein,

    

    WHEREAS,
the Original Purchaser has also agreed, on the terms set forth herein, to
release Fiberglass Piping & Fitting Company, a Wisconsin corporation
(“Fiberglass Piping & Fitting”) under its Unlimited Continuing Guaranty
dated as of February 28, 2007 in favor of the Original Purchaser and the Trustee
given as security for the Obligations (defined therein) (the
“Guaranty”);

    

    

    NOW
THEREFORE, in consideration of the recitals and of the consummation of the
transactions contemplated in this Assignment and Assumption Agreement and for
other good and 

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

      valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

    

    

    l.           Assignment.  M&W
hereby assigns to AFT all of its right, title and interest in and to the Assumed
Contracts.

    

    2.           Assumption.  AFT
hereby accepts the foregoing assignment and assumes and agrees to pay, perform
in accordance with, and be bound by all of the covenants, terms and obligations
contained in the Assumed Contracts arising from and after the date
hereof.  On and after the date hereof, all references in the Assumed
Contracts to “Borrower”, “Debtor,” “Grantor,” “Mortgagor” or words of similar
import shall be deemed to refer to AFT and all representations, warranties,
covenants, grants of security interests or liens, and other agreements made
therein are hereby made by AFT.

    

    3.           Representation and Warranty
of M&W.  M&W represents and warrants to AFT that at the
time of the execution and delivery of this Assignment and Assumption Agreement,
M&W’s right, title and interest in and to the Assumed Contracts being
assigned to AFT hereunder are free and clear of all liens, encumbrances, claims,
restrictions, pledges, security interests or impositions.

    

    4.           Representations and
Warranties of AFT.  AFT represents and warrants to the Original
Purchaser that each of the representations and warranties made by it under the
Assumed Contracts is true and correct as of the date hereof and are incorporated
herein by reference.  AFT further represents that: (i) it is a legal
entity established and duly existing under the laws of one of the states of the
United States of America; and (ii) it shall have net assets immediately
following such transaction at least equal to or greater than that of M&W
immediately prior to such transaction.

    

    5.           Conditions Precedent to
Effectiveness of Agreement.  This Assignment and Assumption
Agreement shall not be effective until Original Purchaser shall have received
the following documents, all in form and substance satisfactory to Original
Purchaser and executed as appropriate:

     

    a.           Fully
executed (and notarized) originals of this Assignment and Assumption Agreement
and Memorandum of Assignment and Assignment Agreement by each of the parties
hereto;

     

    b.           A
title commitment issued by a title company acceptable to Original Purchaser, at
the AFT’s expense, with such title binder constituting a commitment by such
title company to issue an ALTA Loan Policy in favor of the Original Purchaser,
as beneficiary, or an Assumption Agreement Endorsement to an existing policy in
favor of the Original Purchaser, under the Mortgage (as defined under the Credit
Agreement) that specifically insures that the Mortgage is a first lien upon the
mortgaged property subject only to the Permitted Liens (as defined under the
Credit Agreement) and payment of all fees relating to same;

     

    c.           Copies
of certificates or other evidence satisfactory to the Original Purchaser to the
effect that the Original Purchaser is the mortgagee loss payee and additional
insured under the policies of insurance required by Original Purchaser under the
Assumed Contracts, including hazard insurance and liability policies, which
policies shall be in amounts and with insurers acceptable to Original
Purchaser.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    d.           A
Certificate of Status for AFT issued by the State of Wisconsin; a certified copy
of the AFT’s articles of incorporation certified by the Wisconsin Department of
Financial Institutions on February 23, 2007 and certified by an officer of AFT
that there have been no changes since such date; a true and correct copy of the
AFT’s bylaws; a certified copy of the directors’ resolutions authorizing the
transactions contemplated by this Assignment and Assumption Agreement; and a
certificate of the secretary of AFT certifying the authenticity of the articles
of incorporation and by laws and adoption of the authorizing resolutions and
setting forth the true and correct signatures of the officers of AFT and their
respective offices within AFT.

     

    e.           An
opinion of counsel to the AFT, in form attached hereto as Exhibit
A.

     

    f.           Payment
of all fees and costs of counsel to the Original Purchaser; payment of all costs
of recording, title charges.

     

    g.           Evidence
of conveyance of assets from M&W to AFT acceptable to Original
Purchaser.

     

    h.           Such
other information as the Original Purchaser shall reasonably
require.

     

    

    6.           Covenants of
AFT.  In addition to the covenants, undertakings and agreements
set forth in the Assumed Contracts, AFT covenants that it will do, execute,
acknowledge and deliver, or cause to be done, executed, acknowledged and
delivered, such instruments supplemental hereto and such further acts,
instruments and transfers as the Original Purchaser may reasonably require for
the better assuring, transferring, conveying, pledging, assigning and confirming
unto the Original Purchaser or Trustee all the security and rights intended to
be assigned or pledged hereby or under the Assumed Contracts.

    

    7.           Release of
M&W.  Upon effectiveness of this Assignment and Assumption
Agreement, including satisfaction the conditions set forth in Section 5, M&W
shall be and hereby is released of all obligations which may arise under the
Assumed Contracts from and after the date of the date hereof.

    

    8.           Release of Fiberglass Piping
& Fitting.  Upon effectiveness of this Assignment and
Assumption Agreement, including satisfaction the conditions set forth in Section
5, Fiberglass Piping & Fitting shall be and hereby is released of all of its
obligations which may arise under its Guaranty from and after the date of the
date hereof.

    

    9.           Counterparts.  This
Assignment and Assumption Agreement may be executed in multiple counterparts,
all of which shall constitute one and the same instrument and each of which
shall be deemed to be an original.

    

    10.           Costs and
Expenses.  AFT agrees to pay the Original Purchaser’s costs and
expenses in connection with preparation and execution of this Amendment, and the
documents related thereto, including without limitation, attorneys’
fees.

    

    [Signature
Page Follows]

    
      
        
          
            	 
      	 
      	 
      

          

          WHD\6198964.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the parties have executed this Assignment and Assumption
Agreement effective as of the date first written above.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                	M&W:	 	 	AFT:
	 	 	 	 
	M&W
      FIBERGLASS, LLC, a Wisconsin limited liability company	 	 	ADVANCED
      FIBERGLASS TECHNOLOGIES, INC.,
	 	 	 	a
      Wisconsin corporation
	 	 	 	 
	
                                                                         

                                                                      	 	 	
                                                                         

                                                                      
	
                                                                        Name

                                                                      	 	 	
                                                                        Name 

                                                                      
	
                                                                        Title 

                                                                      	 	 	
                                                                        Title

                                                                      
	 	 	 	 
	 	 	 	ORIGINAL PURCHASER: 
	 	 	 	 
	MANCLS:	 	 	NEKOOSA
      PORT EDWARDS STATE BANK,
	 	 	 	as
      Original Purchaser on behalf of itself and its participants
	 	 	 	 
	JAMIE
      L. MANCL 	 	 	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 	 
	JENNIFER
      MANCL 	 	 	 
	 	 	 	 
	 	 	 	ACKNOWLEDGEMENT
	 	 	 	 
	 	 	 	NEKOOSA
      PORT EDWARDS STATE BANK, as Trustee
	 	 	 	 
	 	 	 	 
	 	 	 	Name:
	 	 	 	Title:

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

     

    
 

    
      
        
          [Signature
Page of Assignment and Assumption Agreement]

          City of
Wisconsin Rapids, Wisconsin

          Industrial
Development Revenue Bonds, Series 2007A, 2007B and 2007C

          (Advanced
Fiberglass Technologies Project)

          WHD\6198964.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
1

    

    ASSUMED
CONTRACTS

    

    

    1.           Bond
Agreement dated as of February 28, 2007 by and among the City of Wisconsin
Rapids, Wisconsin (the “Issuer”), M&W, AFT, the Mancls, Nekoosa Port Edwards
State Bank (the “Trustee”) and Nekoosa Port Edwards State Bank (the “Original
Purchaser”);

    

    2.           Promissory
Note (Series 2007A) executed by M&W, AFT and the Mancls in the original
principal amount of $3,000,000;

    

    3.           Promissory
Note (Series 2007B) executed by M&W, AFT and the Mancls in the original
principal amount of $500,000;

    

    4.           Promissory
Note (Series 2007C) executed by M&W, AFT and the Mancls in the original
principal amount of $500,000;

    

    5.           Credit
Agreement dated as of February 28, 2007 by and between M&W, AFT, the Mancls
and the Original Purchaser (the “Credit Agreement”);

    

    6.           Construction
Mortgage, Assignment of Leases and Rents, and Fixture Filing, dated as of
February 28, 2007 by M&W in favor of the Original Purchaser and the Trustee
and recorded February 28, 2007 in the Register of Deeds for Wood County as
Document No. 2007R01980;

    

    7.           Security
Agreement dated as of February 28, 2007 by M&W and AFT, in favor of the
Trustee and the Original Purchaser;

    

    8.           Each
of the other Bond Documents as defined under the Credit Agreement;
and

    

    9.           Each
of the other Related Documents as defined under the Credit
Agreement.exh10-2_note.htm

     

    
      

      

    

     

     

     

     

     

     

     

     

     

     

    EXHIBIT 10.2

     

    PROMISSORY NOTE TO M&W FIBERGLASS, LLC

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    UNSECURED
PROMISSORY NOTE

     

    
      	
              $1,120,328.35

            	 
      	
              December
      31, 2008

            
	 
      	 
      	 
      

    

    

    FOR VALUE
RECEIVED, ADVANCED FIBERGLASS TECHNOLOGIES, INC., a Wisconsin corporation
(herein called “Maker”), promises to pay to the order of M & W FIBERGLASS,
LLC (herein together with all subsequent permitted holders of this Note
collectively called “Payee”), in Wisconsin Rapids, Wood County, Wisconsin, the
principal sum of One Million One Hundred Twenty Thousand Three Hundred
Twenty-eight and Thirty-five Hundredths Dollars ($1,120,328.35) (“Principal
Amount”) subject to the terms and conditions set forth below.

     

    1.  Payment.  The
outstanding principal amount of this Note shall bear interest at the LIBOR Rate
(as defined herein) as of the date hereof plus two and seventy-five hundredths
percent (2.75%) per annum payable in quarterly installments of principal and
interest amortized over a period of fifteen years with the unpaid principal
balance due and payable with interest on the seventh (7th)
anniversary of the date hereof.  For purposes of this Note, “LIBOR
Rate” shall mean the one-year London Interbank Offered Rate determined using
customary quotation services.

     

    2.  Prepayment.  Maker
shall be entitled to prepay all or any part of the principal of this Note at any
time or from time to time prior to maturity without premium or
penalty.  All prepayments by Maker shall be applied first to the then
outstanding principal amount of this Note until paid in full and then to the
interest thereon.

     

    3.  Unsecured
Obligation.  The payment of principal and interest on this Note
is an unsecured obligation of Maker.

     

    4.  Place of
Payment.  All payments of principal and interest hereunder
shall be made to Payee at: 4400 Commerce Drive, Wisconsin Rapids, Wisconsin or
at such other address, as Payee may from time to time designate in writing to
Maker.

     

    5.  No Waiver of
Right.  Payee’s partial or complete exercise, delay, or failure
to exercise any of the options, rights, or powers granted to Payee hereunder
shall not constitute a waiver of the right to exercise the same or any other
option, right, or power at any subsequent time.  Any rights or options
of Payee hereunder shall not be affected by any renewal or extension in the time
of payment hereof, or by the acceptance in advance of due date of any payment
hereunder, or by any acceptance of a payment hereunder that is less than payment
in full of all amounts due and payable at the time of such payment regardless of
the number of such renewals, extensions, releases changes, or
acceptances.

     

    6.  Waiver of
Notice.  Maker waives presentment and demand for payment,
protest, and notice of protest, and nonpayment.

     

    7.  Amendment.  None of
the terms or provisions of this Note may be waived, altered, modified or amended
except as Maker and Payee may consent thereto in writing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.  Laws
Governing.  This Note shall be governed by and construed in
accordance with the laws of the State of Wisconsin in all respects, including
matters of construction, validity, and performance.  This Note is
intended to be performed in accordance with, and only to the extent permitted
by, such laws.  If any provision of this Note or the application
thereof to any person or circumstance shall, for any reason and to any extent,
be invalid or unenforceable, neither the remainder of this Note nor the
application of such provision to any other person or circumstance shall be
affected thereby, but rather same shall be enforced to the greatest extent
permitted by law.

     

    9.  Headings.  The
titles and headings of paragraphs are included for convenience of reference only
and are not to be considered in construing the provisions of this
Note.

     

    

    EXECUTED
AND EFFECTIVE this 31st day of
December, 2008.

     

    
      
        
          
            
              
                	 	 	 
	 	Maker: 	 
	 	 	 
	 	ADVANCED
      FIBERGLASS TECHNOLOGIES, INC.	 
	 	 	 	 
	 	 	 	 
	
                         

                      	
                        By:
      

                      	 	 
	 	 	Jeffrey
      Keuntjes 	 
	 	 	Controller	 
	 	 	 	 

              

            

          

        

      

    

     

     

     

     

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