Document:

Exhibit 10.41

 

	
  BORROWER
  NAME AND ADDRESS 

  	
  LENDER NAME AND ADDRESS 

  	
  LOAN DESCRIPTION

  
	
   

  	
   

  	
   

  
	
  Tower Tech Systems Inc.

  101 S. 16th St., P.O. Box 1957

  Manitowoc, WI 54221-1957

  	
  Investors Community Bank

  860 N. Rapids Road

  P.O. Box 700

  Manitowoc, WI 54221-0700

  	
  Number  44938102        mab

  Amount $ 5,500,000.00

  Date   03-21-2008

  

 

	
  o  Refer to the attached Signature
  Addendum, incorporated herein, for additional Borrowers and their signatures.

  
	
   

  
	
  COMMERCIAL LOAN AGREEMENT

  

 

LOAN STRUCTURE.  This
Commercial Loan Agreement (Agreement) contemplates o a
single advance term Loan o a multiple advance draw Loan x a revolving multiple advance draw Loan.  The principal balance will not exceed $
5,500,000.00 . 
Borrower will pay down a revolving draw Loan’s outstanding Principal to
$
                       
(Pay Down Balance)
                                               
(Time Period).  This Loan is for  o  agricultural 
x  business purposes.

 

o 
Borrower may not voluntarily prepay the Loan in full at any time.  x  Borrower may prepay the Loan under the
following terms and conditions (Any partial prepayment will not excuse any
later scheduled payments until the Loan is paid in full.):  None

 

x  LATE CHARGES.  If
a payment is made more than 10      days after it is due, Borrower will pay a late
charge of  5.000% of the late amount.

 

 

FEES. 
Borrower agrees to pay the following fees in connection with this Loan
at closing or as otherwise requested by Lender: 
Maker agrees to pay a charge of $20.00 for each
check, automatic debit or ACH item presented for payment under this note which
is returned unsatisfied.

 

REQUESTS FOR
ADVANCES.  Borrower authorizes Lender to honor a request
for an advance from Borrower or any person authorized by Borrower.  The requests for an advance must be in writing,
by telephone, or any other manner agreed upon by Borrower and Lender, and must
specify the requested amount and date and be accompanied with any agreements,
documents, and instruments that Lender requires for the Loan.  Lender will make same day advances, on any
day that Lender is open for business, when the request is received before
2:00 P.M. (Advance Cut-Off Time). 
Lender will disburse the advance into Borrower’s demand deposit account
(if any), account number
                                                                    ,
or in any other agreed upon manner.  All
advances will be made in United States dollars.

 

x  These requests must be made by at least 1  (Number
Required To Draw) persons, acting together, of those persons authorized to act
on Borrower’s behalf.

 

o    Advances will be made in the amount of at least $                                     
(Minimum Amount Of Advance).

 

o    Advances will be made no more frequently than
                                       (Minimum
Frequency Of Advance).

 

x  Discretionary Advances.  Lender will make all Loan advances at
Lender’s sole discretion.

 

o    Obligatory Advances.  Lender will make all Loan advances subject to
this Agreement’s terms and conditions.

 

FINANCIAL INFORMATION. 
Borrower will prepare and maintain Borrower’s financial records using
consistently applied generally accepted accounting principles then in
effect.  Borrower will provide Lender
with financial information in a form acceptable to Lender and under the
following terms.

 

A.            Frequency.  Annually,
Borrower will provide to Lender Borrower’s financial statements, tax returns,
annual internal audit reports or those prepared by independent accountants
within 90  days after the close of each fiscal year.  Any annual financial statements that Borrower
provides will be o 
audited statements.  o 
reviewed statements.  x 
compiled statements.

 

o 
Borrower will provide Lender with interim financial reports on a
                                     (Monthly, Quarterly) basis, and within
                 
days after the close of this business period. 
Interim financial statements will be 
o 
audited  o 
reviewed  o 
compiled statements.

 

B.            Requested Information. 
Borrower will provide Lender with any other information about Borrower’s
operations, financial affairs and condition within 30 days after Lender’s
request.

 

o    C.            Leverage Ratio. 
Borrower will maintain at all times a ratio of total liabilities to
tangible net worth, determined under consistently applied generally accepted
accounting principles, of 
                                         
(Total Liabilities to Tangible Net Worth Ratio) or less.

 

o    D.            Minimum Tangible Net Worth. 
Borrower will maintain at all times a total tangible net worth,
determined under consistently applied generally accepted accounting principles,
of $ 
                                        
(Minimum Tangible Net Worth) or more. 
Tangible net worth is the amount by which total assets exceed total
liabilities.  For determining tangible
net worth, total assets will exclude all intangible assets, including without
limitation goodwill, patents, trademarks, trade names, copyrights, and
franchises, and will also exclude any amounts receivable that do not provide
for a repayment schedule.

 

o    E.              Minimum Current Ratio. 
Borrower will maintain at all times a ratio of current assets to current
liabilities, determined under consistently applied generally accepted
accounting principles, of
                                          
(Minimum Current Ratio) or more.

 

o    F.              Minimum Working Capital. 
Borrower will maintain at all times a working capital, determined under
consistently applied generally accepted accounting principles by subtracting
current liabilities from current assets, of $
                                      

(Minimum
Working Capital) or more.  For this
determination, current assets exclude
                                                             
(Excluded Current Assets).  Likewise,
current liabilities include (1) all obligations payable on demand or
within one year after the date on which the determination is made, and
(2) final maturities and sinking fund payments required to be made within
one year after the date on which the determination is made, but exclude all
liabilities or obligations that Borrower may renew or extend to a date more
than one year from the date of this determination.

 

ATTACHMENTS.  The following documents are incorporated by
reference into this Agreement:  o
Asset Based Financing Agreement addendum dated
                                   
x  Commercial Security Agreement addendum dated
10-04.2007 o Other
                                                                .

 

ADDITIONAL
TERMS:  This loan agreement includes the Agreement
Governing Extensions of Credit dated 3/21/2008.

 

x    ORAL AGREEMENTS OR COMMITMENTS TO
LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT
INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT
AGREEMENT.  TO PROTECT YOU (BORROWER) AND
US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH
COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND
EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER
AGREE IN WRITING TO MODIFY IT.  BY
SIGNING THIS AGREEMENT, THE PARTIES AFFIRM THAT NO UNWRITTEN ORAL AGREEMENT
EXISTS BETWEEN THEM.

 

SIGNATURES.  By signing under seal, I agree to all the
terms and conditions beginning on page 1 through the bottom of page 2
of this Agreement.  Borrower also acknowledges receipt of a copy
of this Agreement.

 

	
  BORROWER:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tower
  Tech Systems Inc.

  	
   

  	
   

  	
   

  
	
  Entity
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   /s/
  Steven A. Huntington

  	
  (Seal)

  	
   

  	
  (Seal)

  
	
  Signature:
  Steven A. Huntington, C.F.O.

  	
  Date

  	
   

  	
  Signature

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Seal)

  	
   

  	
  (Seal)

  
	
  Signature

  	
  Date

  	
   

  	
  Signature

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LENDER:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Investors
  Community Bank

  	
   

  	
   

  	
   

  
	
  Entity
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Robert Boerger

  	
  (Seal)

  	
   

  	
   

  
	
  Signature:
  Robert Boerger, Senior Commercial Lender

  	
  Date

  	
   

  	
   

  	
   

  

 

	
  COMMERCIAL
  LOAN AGREEMENT:  to be used with Form
  COMM-NOTE

  	
   

  	
   

  
	
  

  	
  1998, 2001 Bankers Systems, Inc., St. Cloud, MN Form COMM-AGREE
  7/1/2004

  	
   

  	
  NOT TO BE USED FOR LOANS SUBJECT TO CONSUMER LENDING LAWS

  
				

 

1

 

DEFINITIONS.  In this Agreement, the following terms have
the following meanings.

 

Accounting Terms.  Accounting terms that are not
specifically defined will have their customary meanings under consistently
applied generally accepted accounting principles.

 

Loan.  Loan refers to all advances made under the
terms of this Agreement.

 

Loan Documents.  Loan
Documents include this Agreement and all documents prepared pursuant to the
terms of this Agreement including all present and future promissory notes
(Notes), security instruments, guaranties, and supporting documentation as
modified, amended or supplemented.

 

Property. 
Property is any collateral, real, personal or intangible, that secures
Borrower’s performance of the obligations of this Agreement.

 

ADVANCES.  To the extent permitted by law, Borrower will
indemnify Lender and hold Lender harmless for reliance on any request for
advance that Lender reasonably believes to be genuine.  Lender’s records are conclusive evidence as
to the number and amount of advances and the Loan’s unpaid principal and
interest.  If any advance results in an
overadvance (when the total amount of the Loan exceeds the principal balance)
Borrower will pay the overadvance, as requested by Lender.  Regarding Borrower’s demand deposit
account(s) with Lender, Lender may, at its option, consider presentation
for payment of a check or other charge exceeding available funds as a request
for an advance under this Agreement.  Any
such payment by Lender will constitute an advance on the Loan.

 

CONDITIONS.  Borrower will satisfy all of the following
conditions before Lender makes any advances under this Agreement.  If this Agreement provides for discretionary
advances, satisfaction of these conditions does not commit Lender to making
advances.

 

No Default.  There has not been a default under the Loan
Documents nor would a default result from making the advance.

 

Information.  Borrower has provided all required documents,
information, certifications and warranties, all properly executed on forms
acceptable to Lender.

 

Inspections.  Borrower has accommodated, to Lender’s
satisfaction, all inspections.

 

Conditions and Covenants.  Borrower has performed and
complied with all conditions required for an advance and all covenants in the
Loan Documents.

 

Warranties and Representations.  The
warranties and representations contained in this Agreement are true and correct
at the time of making the advance.

 

Financial Statements.  Borrower’s most recently
delivered financial statements and reports are current, complete, true and
accurate in all material respects and fairly represent Borrower’s financial
condition.

 

Bankruptcy Proceedings.  No proceeding under the United
States Bankruptcy Code has been commenced by or against Borrower or any of
Borrower’s affiliates.

 

WARRANTIES AND REPRESENTATIONS.  Borrower makes these warranties and representations which will continue
as long as this Agreement is in effect.

 

Power.  Borrower is duly organized, validly existing
and in good standing in all jurisdictions in which Borrower operates.  Borrower has the power and authority to enter
into this transaction and to carry on its business or activity as it is now
being conducted.  All persons who are
required by applicable law and the governing documents of Borrower have
executed and delivered to Lender this Agreement and other Loan Documents.

 

Authority.  The execution, delivery and performance of
this Agreement and the obligation evidenced by the Loan Documents are within
Borrower’s duly authorized powers, has 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 Borrower is a
party or to which Borrower or Borrower’s property is subject.

 

Name and Place of Business.  Other than previously disclosed
in writing to Lender, Borrower has not changed its name or principal place of
business within the last ten years and has not used any other trade or
fictitious name.  Without Lender’s prior
written consent, Borrower will not use any other name and will preserve
Borrower’s existing name, trade names and franchises.

 

No Other Liens.  Borrower owns or leases all property that is
required for its business and except as disclosed, the property is free and
clear of all liens, security interests, encumbrances and other adverse
interests.

 

Compliance With Laws.  Borrower is not violating any
laws, regulations, rules, orders, judgments or decrees applicable to Borrower
or its property, except as disclosed to Lender.

 

Financial Statements.  Borrower represents and warrants
that all financial statements Borrower provides fairly represent Borrower’s
financial condition for the stated periods, are current, complete, true and
accurate in all material respects, include all direct or contingent liabilities,
and that there has been no material adverse change in Borrower’s financial
condition, operations or business since the date the financial information was
prepared.

 

COVENANTS.  Until the Loan and all related debts,
liabilities and obligations under the Loan Documents are paid and discharged,
Borrower will comply with the following terms, unless Lender waives compliance
in writing.

 

Inspection and Disclosure.  Borrower will allow Lender or
its agents to enter any of Borrower’s premises during mutually agreed upon
times, to do the following: 
(1) inspect, audit, review and obtain copies from Borrower’s books,
records, orders, receipts, and other business related data; (2) discuss
Borrower’s finances and business with anyone who claims to be Borrower’s creditor;
3) inspect Borrower’s Property, audit for the use and disposition of the
Property’s proceeds; or do whatever Lender decides is necessary to preserve and
protect the Property and Lender’s interest in the Property.  As long as this Agreement is in effect,
Borrower will direct all of Borrower’s accountants and auditors to permit
Lender to examine and make copies of Borrower’s records in their possession,
and to disclose to Lender any other information that they know about Borrower’s
financial condition and business operations. 
Lender may provide Lender’s regulator with required information about
Borrower’s financial condition, operation and business or that of Borrower’s
parent, subsidiaries or affiliates.

 

Business Requirements.  Borrower will preserve and
maintain its present existence and good standing in jurisdictions where
Borrower is organized and operates. 
Borrower will continue its business or activities as presently
conducted, by obtaining licenses, permits and bonds where needed.  Borrower will obtain Lender’s prior written
consent before ceasing business or engaging in any line of business that is
materially different from its present business.

 

Compliance with Laws.  Borrower will not violate any
laws, regulations, rules, orders, judgments or decrees applicable to Borrower
or Borrower’s property, except for those which Borrower challenges in good
faith through proper proceedings after providing adequate reserves to fully pay
the claim and its appeal should Borrower lose. 
On request, Borrower will provide Lender with written evidence that
Borrower has fully and timely paid taxes, assessments and other governmental
charges levied or imposed on Borrower and its income, profits and
property.  Borrower will adequately
provide for the payment of taxes, assessments and other charges that have
accrued but are not yet due and payable.

 

New Organizations.  Borrower will obtain Lender’s
written consent before organizing, merging into, or consolidating with an
entity; acquiring all or substantially all of the assets of another; or
materially changing legal structure, management, ownership or financial
condition.

 

Other Liabilities.  Borrower 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 Lender; debt
subordinated in payment to Lender on terms acceptable to Lender; accounts
payable incurred in the ordinary course of business and paid under customary
trade terms or contested in good faith with reserves satisfactory to Lender; or
as otherwise agreed to by Lender.

 

Notice.  Borrower will promptly notify Lender of any
material change in financial condition, a default under the Loan Documents, or
a default under any agreement with a third party which materially and adversely
affects Borrower’s property, operations, or financial condition.

 

Dispose of No Assets. 
Without Lender’s prior written consent, Borrower will not sell, lease,
assign, or otherwise distribute all or substantially all of its assets.

 

Insurance. 
Borrower will obtain and maintain insurance with insurers in amounts and
coverages that are acceptable to Lender and customary with industry
practice.  This may include without
limitation credit insurance, insurance policies for public liability, fire,
hazard and extended risk, workers compensation, and, at Lender’s request,
business interruption and/or rent loss insurance.  Borrower may obtain insurance from anyone
Borrower wants that is acceptable to Lender. 
Borrower’s choice of insurance provider will not affect the credit
decision or interest rate.  At Lender’s
request, Borrower will deliver to Lender certified copies of all of these
insurance policies, binders or certificates. 
Borrower will obtain and maintain a mortgagee or loss payee endorsement
for Lender when these endorsements are available.  Borrower will require all insurance policies
to provide at least 10 days prior written notice to Lender of cancellation or
modification.  Borrower consents to
Lender using or disclosing information relative to any contract of insurance
required for the Loan for the purpose of replacing this insurance.  Borrower also authorizes its insurer and
Lender to exchange all relevant information related to any contract of
insurance executed as required by any Loan Documents.

 

Property Maintenance. 
Borrower will keep property that is necessary or useful in its business
in good working condition by making all needed repairs, replacements and
improvements and by making payments due on the property.

 

DEFAULT.  If the Loan is payable on demand, Lender may
demand payment at any time whether or not any of the following events have
occurred.  Borrower will be in default if
any one or more of the following occur. 
(1) Borrower fails to make a payment in full when due.  (2) Borrower makes an assignment for the
benefit of creditors or becomes insolvent, either because Borrower’s
liabilities exceed its assets or Borrower is unable to pay debts as they become
due; or Borrower petitions for protection under any bankruptcy, insolvency or
debtor relief laws, or is the subject of such a petition or action and fails to
have the petition or action dismissed within a reasonable period of time.  (3) Borrower fails to perform any condition
or to keep any promise or covenant on this Agreement or any debt or agreement
Borrower has with Lender.  (4) A
default occurs under the terms of any instrument evidencing or pertaining to
this Agreement.  (5) If Borrower is
a producer of crops, Borrower fails to plant, cultivate and harvest crops in
due season.  (6) Any loan proceeds
are used for a purpose that will contribute to excessive erosion of highly
erodible land or to the conversion of wetlands to produce an agricultural
commodity, as further explained
by federal law.  (7) Anything else
happens that either significantly impairs the value of the Property or, unless
controlled by the New Jersey Banking Law, causes Lender to reasonably believe
that Lender will have difficulty collecting the Loan.

 

REMEDIES.  After Borrower defaults, and after Lender
gives any legally required notice and opportunity to cure, Lender may at its
option use any and all remedies Lender has under state or federal law or in any
of the Loan Documents, including, but not limited to, terminating any
commitment or obligation to make additional advances or making all or any part
of the amount owing immediately due. 
Lender may set-off any amount due and payable under the terms of the
Loan against Borrower’s right to receive money from Lender, unless prohibited
by applicable law.  Except as otherwise
required by law, by choosing any one or more of these remedies Lender does not
give up Lender’s right to use any other remedy. 
Lender does not waive a default if Lender chooses not to use a remedy,
and may later use any remedies if the default continues or occurs again.

 

COLLECTION EXPENSES AND ATTORNEYS’ FEES.  To the
extent permitted by law, Borrower agrees to pay all expenses of collection,
enforcement and protection of Lender’s rights and remedies under this
Agreement.  Expenses include, but are not
limited to, reasonable attorneys’ fees including attorney fees as permitted by
the United States Bankruptcy Code, court costs and other legal expenses.  These expenses will bear interest from the
date of payment until paid in full at the contract interest rate then in effect
for the Loan.  FL:  Attorneys’ fees will be 10 percent of the
principal sum due or a larger amount as
the court judges as reasonable and just. 
GA: 
Attorneys’ fees will be 15 percent of the principal and interest owing.

 

GENERAL PROVISIONS.  This Agreement is governed by
the laws of the jurisdiction where Lender is located, the United States of
America and to the extent required, by the laws of the jurisdiction where the
Property is located.

 

Joint And Individual Liability And Successors.  Each
Borrower, individually, has the duty of fully performing the obligations on the
Loan.  Lender can sue all or any of the
Borrowers upon breach of performance. 
The duties and benefits of this Loan will bind and benefit the
successors and assigns of Borrower and Lender.

 

Amendment, Integration And Severability.  The
Loan Documents may not be amended or modified by oral agreement.  Borrower agrees that any party signing this
Agreement as Borrower is authorized to modify the terms of the Loan
Documents.  Borrower agrees that Lender
may inform any party who guarantees this Loan of any Loan accommodations,
renewals, extensions, modification, substitutions, or future advances.  The Loan Documents are the complete and final
expression of the understanding between Borrower and Lender.  If any provision of the Loan Documents is
unenforceable, then the unenforceable provision will be severed and the
remaining provisions will be enforceable.

 

Waivers And Consent.  Borrower, to the extent
permitted by law, consents to certain actions Lender may take, and generally
waives defenses that may be available based on these actions or based on the
status of a party to the Loan.  Lender
may renew or extend payments on the Loan. 
Lender may release any borrower, endorser, guarantor, surety, or any
other co-signer.  Lender may release,
substitute, or impair any Property securing the Loan.  Lender’s course of dealing, or Lender’s
forbearance from, or delay in, the exercise of any of Lender’s rights,
remedies, privileges, or right to insist upon Borrower’s strict performance of
any provisions contained in the Loan Documents, will not be construed as a
waiver by Lender, unless the waiver is in writing and signed by Lender.  Lender may participate or syndicate the Loan
and share any information that Lender decides is necessary about Borrower and
the Loan with the other participants.

 

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.  Unless otherwise indicated, the terms of this
Agreement shall be construed in accordance with the Uniform Commercial Code.

 

Notice.  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 this Agreement, or to any other address
designated in writing.  Notice to one
party will be deemed to be notice to all parties.  Time is of the essence.

 

2Exhibit 10.42

 

	
  GUARANTOR
  NAME AND ADDRESS

  	
  LENDER
  NAME AND ADDRESS

  	
   

  
	
   

  	
   

  	
  Number
                          

   

  Amount
                          

   

  Date                              

  
	
  R.B.A.
  Inc.  

  300
  S. 16th St., P.O. Box 668  

  Manitowoc,
  WI 54221-0668

  	
  Investors
  Community Bank  

  860
  N. Rapids Road  

  P.O. Box
  700  

  Manitowoc,
  WI 54221-0700

  
	
   

  	
   

  	
   

  

 

GUARANTY

 

DATE. The date
of this Guaranty is 03-21-2008.

 

For
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and to induce Lender (with its participants, successors
and assigns), at its option, at any time or from time to time to make loans or
extend other accommodations to or for the account of Tower Tech Systems Inc. (Borrower)
or to engage in any other transactions with Borrower, the Guarantor hereby
absolutely and unconditionally guarantees to the Lender the full and prompt
payment when due, whether at maturity or earlier by reason of acceleration or
otherwise, of the debts, liabilities and obligations described as follows:

 

INDEBTEDNESS.

 

o  Specific Debts.  The
Guarantor guarantees to Lender the payment and performance of the debt,
liability or obligation of Borrower to Lender evidenced by or arising out of
the following:                                                                                 
and any extensions, renewals or replacements thereof (Indebtedness).

 

x  All Debts.  Except as
this Guaranty may otherwise provide, the Guarantor guarantees to Lender the
payment and performance of each and every debt, liability and obligation of
every type and description which Borrower may now or at any time hereafter owe
to Lender (whether such debt, liability or obligation now exists or is
hereafter created or incurred, and whether it is or may be direct or indirect,
due or to become due, absolute or contingent, primary or secondary, liquidated
or unliquidated, or joint, several, or joint and several; all such debts,
liabilities and obligations (Indebtedness)). Without limitation, this Guaranty
includes the following described debt(s):

 

See Agreement Governing Extensions of Credit between lender and
borrower dated 3/21/2008.

 

Exclusions.

 

o 
Guarantor will be liable for $
                              
of the principal amount of the Indebtedness outstanding at default and for all
of the accrued interest, and the expenses of collection, enforcement or
protection of Lender’s rights and remedies under this Guaranty, including
reasonable attorneys’ fees.

 

o 
Guarantor’s liability will not exceed            %
of the Indebtedness outstanding at default and all of the accrued interest, and
the expenses of collection, enforcement or protection of Lender’s rights and
remedies under this Guaranty, including reasonable attorneys’ fees.

 

o  Indebtedness
Excludes:

 

SECURITY.

 

x  the
Guaranty is unsecured.

 

o 
secured by
                                                                                                                                                                             
                                                                                                                                                                                                      .

 

IL
only  o  CONFESSION OF JUDGMENT.
If Guarantor defaults, it authorizes any attorney to appear in a court of record
and confess judgment against it in favor of Lender. The confession of judgment
may be without process and for any amount due on this Guaranty including
collection costs and reasonable attorneys’ fees.

 

PA
only  o  WARRANT OF AUTHORITY TO
CONFESS JUDGMENT. Upon default, in addition to all other remedies
and rights available to Lender, by signing below Guarantor irrevocably
authorizes the prothonotary, clerk, or any attorney to appear in any court of
record having jurisdiction over this matter and to confess judgment against
Guarantor at any time without stay of execution. Guarantor waives notice,
service of process and process. Guarantor agrees and understands that judgment
may be confessed against Guarantor for any unpaid principal, accrued interest
and accrued charges due on this Note, plus collection costs and reasonable
attorneys’ fees up to 15 percent of the judgment. The exercise of the power to
confess judgment will not exhaust this warrant of authority to confess judgment
and may be done as often as Lender elects. Guarantor further understands that
Guarantor’s property may be seized without prior notice to satisfy the debt
owed. Guarantor knowingly, intentionally, and voluntarily waives any and all
constitutional rights Guarantor has to pre-deprivation notice and hearing under
federal and state laws and fully understands the consequences of this waiver.

 

By
signing immediately below, Guarantor agrees to the terms of the WARRANT OF
AUTHORITY TO CONFESS JUDGMENT section.

 

 

SIGNATURES.  By
signing under seal, Guarantor agrees to the terms contained in this Guaranty
(including those on page 2). 
Guarantor also acknowledges receipt of a copy of this Guaranty.

 

GUARANTOR:

 

	
  R.B.A.
  Inc.

  	
   

  	
   

  	
   

  
	
  Entity
  Name

  	
  (Seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Steven A. Huntington

  	
   

  	
   

  	
   

  
	
  Name,
  Title  Steven A. Huntington, C.F.O.

  	
  (Seal)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name,
  Title

  	
  (Seal)

  	
   

  	
   

  

 

1

 

ADDITIONAL PROVISIONS

 

The
Guarantor further acknowledges and agrees with Lender that:

 

1.               No act or thing need occur to establish the
liability of the Guarantor hereunder, and no act or thing, except full payment
and discharge of all Indebtedness, shall in any way exonerate the Guarantor or
modify, reduce, limit or release the liability of the Guarantor hereunder.

 

2.               This is an absolute, unconditional and
continuing Guaranty of payment of the Indebtedness and will continue to be
enforceable against the Guarantor, whether or not all Indebtedness is paid in
full, until this Guaranty is revoked by written notice actually received by the
Lender.  Any revocation shall not be
effective as to any Indebtedness existing or committed to at the time of actual
receipt of notice by the Lender, or as to any renewals, extensions and
refinancings thereof.

 

The
Guarantor represents and warrants to the Lender that the Guarantor has a direct
and substantial economic interest in Borrower and expects to derive substantial
benefits therefrom and from any loans and financial accommodations resulting
from the creation of Indebtedness guaranteed hereby, and that this Guaranty is
given for a business purpose. The Guarantor agrees to rely exclusively on its
right to revoke this Guaranty prospectively as to future transactions by
written notice actually received by Lender if at any time the benefits then
being received by the Guarantor in connection with this Guaranty are not
sufficient to warrant its continuance as a Guarantor as to future Indebtedness.
Accordingly, the Lender may rely conclusively on a continuing warranty, hereby
made, that the Guarantor continues to be benefited by this Guaranty and that
the Lender has no duty to inquire into or confirm the receipt of any benefits,
and that this Guaranty will be enforceable without regard to the receipt,
nature or value of any such benefits.

 

3.               If the Guarantor is dissolved or becomes
insolvent, however defined, or revokes this Guaranty, then the Lender has the
right to declare the full amount of all Indebtedness immediately due and
payable, and the Guarantor will forthwith pay the Lender. If the Guarantor
voluntarily commences or there is commenced involuntarily against the Guarantor
a case under the United States Bankruptcy Code, the full amount of all
Indebtedness, whether due and payable or unmatured, will become immediately due
and payable without demand or notice thereof.

 

4.               The Guarantor will be liable for all
Indebtedness, without any limitation as to amount, plus accrued interest
thereon and all other costs, fees, and expenses agreed to be paid under all
agreements evidencing the Indebtedness and securing the payment of the
Indebtedness, and all attorneys’ fees, collection costs and enforcement
expenses referable thereto. Indebtedness may be created and continued in any
amount, whether or not in excess of such principal amount, without affecting or
impairing the liability of the Guarantor hereunder. The Lender may apply any
sums received by or available to the Lender on account of the Indebtedness from
Borrower or any other person (except the Guarantor), from their properties, out
of any collateral security or from any other source to payment of the excess.
Such application of receipts will not reduce, affect or impair the liability of
the Guarantor hereunder. If the liability of the Guarantor is limited pursuant
to this paragraph 4, any payment made by the Guarantor under this Guaranty will
be effective to reduce or discharge its liability only if accompanied by a
written transmittal document, received by the Lender, advising that such
payment is made under this Guaranty for that purpose.

 

5.               The Guarantor will pay or reimburse the Lender
for all costs and expenses (including reasonable attorneys’ fees and legal
expenses) incurred by the Lender in connection with the protection, defense or
enforcement of this Guaranty in any litigation or bankruptcy or insolvency
proceedings.

 

6.               Whether or not any existing relationship
between the Guarantor and Borrower has been changed or ended and whether or not
this Guaranty has been revoked, the Lender may, but shall not be obligated to,
enter into transactions resulting in the creation or continuance of
Indebtedness, without any consent or approval by the Guarantor and without any
notice to the Guarantor. The liability of the Guarantor will not be affected or
impaired by any of the following acts or things (which the Lender is expressly
authorized to do, omit or suffer from time to time, both before and after
revocation of this Guaranty, without notice to or approval by the Guarantor): (i) any
acceptance of collateral security, Guarantors, accommodation parties or
sureties for any or all Indebtedness; (ii) any one or more extensions or
renewals of Indebtedness (whether or not for longer than the original period)
or any modification of the interest rates, maturities or other contractual
terms applicable to any Indebtedness; (iii) any waiver, adjustment,
forbearance, compromise or indulgence granted to Borrower, any delay or lack of
diligence in the enforcement of Indebtedness, or any failure to institute
proceedings, file a claim, give any required notices or otherwise protect any
Indebtedness; (iv) any full or partial release of, settlement with, or
agreement not to sue, Borrower or any other Guarantor or other person liable in
respect of any Indebtedness; (v) any discharge of any evidence of
Indebtedness or the acceptance of any instrument in renewal thereof or
substitution therefor; (vi) any failure to obtain collateral security
(including rights of setoff) for Indebtedness, or to see to the proper or
sufficient creation and perfection thereof, or to establish the priority thereof,
or to protect, insure, or enforce any collateral security; or any release,
modification, substitution, discharge, impairment, deterioration, waste, or
loss of any collateral security; (vii) any foreclosure or enforcement of
any collateral security; (viii) any transfer of any Indebtedness or any
evidence thereof; (ix) any order of application of any payments or credits
upon Indebtedness; (x) any election by the Lender under §1111(b)(2) of
the United States Bankruptcy Code.

 

7.               The Guarantor waives any and all defenses,
claims and discharges of Borrower, or any other obligor, pertaining to
Indebtedness, except the defense of discharge by payment in full. Without
limiting the generality of the foregoing, the Guarantor will not assert, plead
or enforce against the Lender any defense of waiver, release, estoppel, statute
of limitations, res judicata, statute of frauds, fraud, forgery, incapacity,
minority, usury, illegality or unenforceability which may be available to
Borrower or any other person liable in respect of any Indebtedness, or any
setoff available against the Lender to Borrower or any such other person,
whether or not on account of a related transaction. The Guarantor expressly
agrees that the Guarantor will be liable, to the fullest extent permitted by
applicable law, for any deficiency remaining after foreclosure of any mortgage
or security interest securing Indebtedness, whether or not the liability of
Borrower or any other obligor for such deficiency is discharged pursuant to
statute or judicial decision.  The
Guarantor shall remain obligated, to the fullest extent permitted by law, to
pay such amounts as though Borrower’s obligations had not been discharged.

 

8.               The Guarantor further agree(s) that
Guarantor will be obligated to pay Indebtedness even though any other person
obligated to pay Indebtedness, including Borrower, has such obligation
discharged in bankruptcy or otherwise discharged by law. “Indebtedness” shall
include post-bankruptcy petition interest and attorneys’ fees and any other amounts
which Borrower is discharged from paying or which do not accrue to Indebtedness
due to Borrower’s discharge, and Guarantor will be obligated to pay such
amounts as fully as if Borrower’s obligations had not been discharged.

 

9.               If any payment applied by the Lender to
Indebtedness is thereafter set aside, recovered, rescinded or required to be
returned for any reason (including, without limitation, the bankruptcy,
insolvency or reorganization of Borrower or any other obligor), the
Indebtedness to which such payment was applied will for the purposes of this
Guaranty be deemed to have continued in existence, notwithstanding such
application, and this Guaranty will be enforceable as to such Indebtedness as
fully as if such application had never been made.

 

10.         Until the obligations of the Borrower to Lender have been paid in full,
the Guarantor waive(s) any claim, remedy or other right which the
Guarantor may now have or hereafter acquire against Borrower or any other
person obligated to pay Indebtedness arising out of the creation or performance
of the Guarantor’s obligation under this Guaranty, including, without
limitation, any right of subrogation, contribution, reimbursement,
indemnification, exoneration or any right to participate in any claim or remedy
the Guarantor may have against the Borrower, collateral, or other party
obligated for Borrower’s debt, whether or not such claim, remedy, or right
arises in equity, or under contract, statute or common law.

 

11.         The Guarantor waives presentment, demand for payment, notice of dishonor
or nonpayment, and protest of any instrument evidencing Indebtedness. The
Lender will not be required first to resort for payment of the Indebtedness to
Borrower or other persons or their properties, or first to enforce, realize
upon or exhaust any collateral security for Indebtedness, before enforcing this
Guaranty.

 

12.         The liability of the Guarantor under this Guaranty is in addition to and
is cumulative with all other liabilities of the Guarantor to the Lender as
Guarantor or otherwise, without any limitation as to amount, unless the
instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

 

13.         To induce Lender to enter into the Loan, Guarantor makes these
representations and warranties for as long as Guaranty is in effect. Guarantor
is duly organized, validly existing and in good standing under the laws in the
jurisdiction where Guarantor was organized and is duly qualified, validly
existing and in good standing in all jurisdictions in which Guarantor operates
or Guarantor owns or leases property. Guarantor has the power and authority to
enter into this transaction and to carry on Guarantor’s business or activity as
now conducted. The execution, delivery and performance of this Guaranty and the
obligation evidenced by this Guaranty are within Guarantor’s duly authorized
powers; 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 Guarantor is a party or to which Guarantor is or any of
Guarantor’s property is subject. Other than previously disclosed in writing to
Lender, Guarantor has not changed Guarantor’s name or principal place of
business within the last ten years and has not used any other trade or
fictitious name. Without Lender’s prior written consent, Guarantor does not and
will not use any other name and will preserve Guarantor’s existing name, trade
names and franchises. Guarantor owns or leases all property that Guarantor
needs to conduct Guarantor’s business and activities. All of Guarantor’s
property is free and clear of all liens, security interests, encumbrances and
other adverse claims and interests, except those Lender previously agreed to in
writing. Guarantor is not violating any laws, regulations, rules, orders,
judgments or decrees applicable to Guarantor or Guarantor’s property, except
for those that Guarantor is challenging in good faith through proper
proceedings after providing adequate reserves to fully pay the claim and its
challenge should Guarantor lose.

 

14.         This Guaranty is effective upon delivery to the Lender, without further
act, condition or acceptance by the Lender. It will be binding upon the
Guarantor and the successors and assigns of the Guarantor and will inure to the
benefit of the Lender and its participants, successors and assigns. If there be
more than one Guarantor, all agreements and promises herein shall be construed
to be, and are hereby declared to be, joint and several in each and every
particular and shall be fully binding upon and enforceable against either, any
or all the Guarantors. Any invalidity or unenforceability of any provision or
application of this Guaranty will not affect other lawful provisions and application
hereof, and to this end the provisions of this Guaranty are declared to be
severable. Except as allowed by the terms herein, this Guaranty may not be
waived, modified, amended, terminated, released or otherwise changed except by
a writing signed by the Guarantor and the Lender. This Guaranty shall be
governed by the laws of the State in which it is executed. The Guarantor waives
notice of the Lender’s acceptance hereof.

 

2

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