Document:

Exhibit
10.4

 

ASSIGNMENT
AND ASSUMPTION OF PURCHASE AGREEMENT

 

Brad Foote Gear Works, Inc.,
an Illinois corporation (“Assignor”) for
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by Assignor, hereby assigns, transfers, sets over and
delivers to 5100 Neville Road, LLC, a Delaware limited liability company (“Assignee”), all of Assignor’s right, title and interest in,
to and under that certain Purchase Agreement Addendum between Assignor as
Purchaser and BFG Pittsburgh LLC, a Pennsylvania limited liability company, as
Seller, dated February 11, 2008 (“Purchase Agreement”),
regarding the real estate commonly known as 5100 Neville Road, LLC, Pittsburgh,
Pennsylvania, as more fully described therein (the “Property”).  Assignee hereby assumes all of Assignor’s
responsibilities and obligations under the Purchase Agreement, and Assignor is
hereby released from any responsibilities and obligations thereunder.

 

IN WITNESS, the parties have
caused this Assignment and Assumption of Purchase Agreement to be executed as
of February 11, 2008.

 

	
  ASSIGNOR:

  	
  BRAD FOOTE GEAR WORKS, INC.,

  
	
   

  	
  an Illinois corporation

  
	
   

  	
   

  
	
   

  	
  /s/ Steve Huntington

  
	
   

  	
  By Steve Huntington

  
	
   

  	
  Its Chief Financial Officer

  
	
   

  	
   

  
	
  ASSIGNEE:

  	
  5100 NEVILLE ROAD, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  BRAD FOOTE GEAR WORKS, INC.,

  
	
   

  	
   

  	
  an Illinois corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Steve Huntington

  
	
   

  	
   

  	
  By Steve Huntington

  
	
   

  	
   

  	
  Its Chief Financial Officer

  

 

CONSENT TO ASSIGNMENT AND
ASSUMPTION OF PURCHASE AGREEMENT

 

The undersigned Seller hereby
consents to the assignment of all of Assignor’s right, title and interest in,
to and under the Purchase Agreement to Assignee, and the undersigned further
consents to the assumption of Assignor’s responsibilities and obligations under
the Purchase Agreement by Assignee and release of Assignor from any
responsibilities and obligations thereunder, all as set forth above.

 

	
  SELLER:

  	
  BFG PITTSBURGH LLC,

  
	
   

  	
  a Pennsylvania limited liability company

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  BFG ACQUISITION LLC,

  
	
   

  	
   

  	
  an Illinois limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Joan Drecoll

  
	
   

  	
   

  	
  By Joan Drecoll

  
	
   

  	
   

  	
  Its ManagerExhibit 10.5

 

TWENTY-SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS
TWENTY-SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”)
is dated as of January 31, 2008 between BRAD FOOTE GEAR WORKS, INC. f/k/a
BFG Acquisition Corp., an Illinois corporation (“Borrower”) and LASALLE BANK
NATIONAL ASSOCIATION f/k/a LaSalle National Bank f/k/a LaSalle Bank NI (“Lender”).

 

WHEREAS, Borrower and
Lender have entered in that certain Loan and Security Agreement dated as of January 17,
1997, as amended by those certain letter amendments dated February 28,
1997 and July 23, 1997 and those certain Third, Fourth, Fifth, Sixth,
Seventh, Eighth, Ninth, Eleventh, Twelfth, Thirteenth, Fourteenth, Fifteenth,
Sixteenth, Seventeenth, Eighteenth, Nineteenth, Twentieth, Twenty-First,
Twenty-Second, Twenty-Third, Twenty-Fourth, Twenty-Fifth and Twenty-Sixth
Amendments to Loan and Security Agreement dated as of March 30, 1998, December 1,
1998, June 1, 1999, December 19, 2000, May 1, 2001, July 1,
2001, April 30, 2002, April 29, 2003, July 3, 2003, April 29,
2004, November 15, 2004, April 29, 2005, June 15, 2005, February 1,
2006, April 29, 2006, November 10, 2006, January 8, 2007, April 29,
2007, June 30, 2007,  October       ,
2007, October 18, 2007, November 1, 2007 and January 15, 2008,
respectively, and that certain letter amendment (herein, the “Tenth Amendment”)
dated October 17, 2002 (such agreement, as so amended, the “Loan Agreement”)
with regard to the following loans made by Lender to Borrower: (i) a
$10,000,000.00 revolving line of credit loan (the “Revolving Loan”), (ii) a
consolidated term loan in the original principal sum of $7,899,332.98 (the “Term
Loan”), (iii) an $11,000,000.00 non-revolving equipment line of credit
loan with term conversion feature (the “Equipment Loan”), and (iv) a
$9,000,000.00 non-revolving equipment line of credit loan with term conversion
feature (the “Equipment Loan No. 2”); and

 

WHEREAS, Lender has
been asked to make a certain $2,075,000.00 term loan to 5100 NEVILLE ROAD, LLC,
a Delaware limited liability company, and 1309 SOUTH CICERO AVENUE, LLC, a
Delaware limited liability company; and

 

WHEREAS, Lender has
agreed to the foregoing loan request provided, among other conditions, that
Borrower executes and delivers to Lender a guaranty of such term loan and
further agrees to amend the Loan Agreement to reflect that the Collateral (as
defined in the Loan Agreement) shall also secure repayment of said term loan
and guaranty;

 

NOW,
THEREFORE, for valuable consideration, the receipt of which is
hereby acknowledged, and in consideration of the foregoing premises, the
parties hereto agree as follows:

 

1.             The capitalized terms used herein without definition
shall have the same meaning herein as such terms have in the Loan Agreement.

 

1

 

2.             The definition of “Indebtedness” in Section 1.1 of
the Loan Agreement is hereby amended in its entirety to read as follows:

 

“Indebtedness”  shall collectively mean and include (A) all
loans, advances, debts, liabilities, obligations, covenants and duties owing to
the Lender by the Borrower, whether now existing, or hereafter created or
arising, including, without limitation: (l) the Revolving Loan, together
with all loans, advances and overadvances now or hereafter made
thereunder,  and  all 
extensions, renewals,  amendments,
refinancings, modifications, consolidations and conversions thereof or
increases thereto; and (2) the Term Loan, together with all extensions,
renewals, amendments, refinancings, modifications, consolidations and
conversions thereof; and (3) the Equipment Loan, together with all
extensions, renewals, amendments, refinancings, modifications, consolidations
and conversions thereof; and (4) the Equipment Loan No. 2, together
with all extensions, renewals, amendments, refinancings, modifications,
consolidations and conversions thereof; and all interest, fees, charges,
expenses, attorneys’ fees and other costs and sums now or hereafter payable by
the Borrower under the terms of this Agreement, the Notes, or any of the other
Loan Documents; and (5) all Rate Management Obligations heretofore, now or
hereafter owed by the Borrower to the Lender; and (6) any and all other
loans, advances, overdrafts, indebtedness, liabilities and obligations now or
hereafter owed by Borrower to Lender, of every 
kind and nature, howsoever created, arising or evidenced, and howsoever
owned, held or acquired, whether now due or to become due, whether direct or
indirect, or absolute or contingent, whether several, joint or joint and
several, whether liquidated or unliquidated, whether legal or equitable,
whether disputed or undisputed, whether secured or unsecured, or whether
arising under this Agreement or any of the other Loan Documents or any other
document or instrument, and, advances made by Lender to pay or discharge any
other lien, security interest or encumbrance upon the Collateral; and (7) all
advances made by Lender to protect the Collateral, and/or Lender’s security
interest therein; and (8) all costs, expenses and fees (including
reasonable attorneys’ fees) incurred by Lender pursuant to the terms of this
Agreement or any of the other Loan Documents, or in  connection with (i) the drafting and
preparation of this Agreement and the other Loan Documents, (ii) the
administration, enforcement and defense of this Agreement and any other Loan
Documents, or the relationships and security interests created hereunder or
thereunder, (iii) the collection of the Indebtedness and any other
obligation or indebtedness secured hereby, and (iv) the sale or other
disposition of the Collateral, or any portion thereof; and (9) all
obligations, contingent or otherwise, of the Borrower under or related to (i) any
Letters of Credit now or hereafter issued by the Lender pursuant to the terms
of this Agreement, and (ii) any other letters of credit heretofore, now or
hereafter issued by Lender; and (B) the Subsidiary Loan together with all
extensions, renewals, amendments, refinancings, modifications, consolidations
and conversions thereof; and (C) the Subsidiary Guaranty and all sums now
or hereafter owed by the Borrower thereunder.”

 

3.             Section 1.1 of the Loan Agreement is hereby amended
to add the following additional defined terms thereto:

 

“Subsidiary
Guaranty” shall mean that certain Unconditional Guaranty
dated January 31, 2008  executed
by the Borrower in favor of the Lender, whereby the Borrower guaranteed the
payment of the Subsidiary Loan, and all other Guaranteed Debt as defined in the
Subsidiary Guaranty.

 

2

 

“Subsidiary
Loan” shall mean that certain term loan in the principal sum of
$2,075,000.00 made by Lender to 1309 South Cicero Avenue, LLC, a Delaware
limited liability company, and 5100 Neville Road, LLC, a Delaware limited liability
company, together with all extensions, renewals, amendments, refinancings,
modifications, consolidations and conversions thereof;

 

4.             Section 15 of the Loan
Agreement is hereby amended to add the following additional event of default
thereto:

 

“(x)          If Borrower shall fail to pay any sum
when due to Lender under the Subsidiary Guaranty, and such failure shall
continue for five (5) days after written notice of such default is sent to
Borrower by Lender.”

 

5.             The Borrower acknowledges and agrees that the Loan
Agreement is and as amended hereby shall remain in full force and effect, and
that the Collateral is and shall remain subject to the lien and security
interest granted and provided for by the Loan Agreement as amended hereby, for
the benefit and security of (a) all obligations and indebtedness
heretofore, now or hereafter owed by Borrower to Lender, including, without
limitation, the indebtedness evidenced by the Revolving Note, the Term Note,
the Equipment Note, the Equipment No. 2 
and all other Indebtedness (including, without limitation, the repayment
of all sums when due under the Subsidiary Guaranty).

 

6.             Without limiting the foregoing, the Borrower hereby
agrees that, notwithstanding the execution and delivery hereof, (i) all
rights and remedies of the Lender under the Loan Agreement, (ii) all
obligations and indebtedness of the Borrower thereunder, and (iii) the
lien and security interest granted and provided for thereby are and as amended
hereby shall remain in full force and effect for the benefit and security of
all obligations and indebtedness of the Borrower thereunder, including, without
limitation, the indebtedness evidenced by the Revolving Note, the Term Note,
the Equipment Note, the Equipment Note No. 2 and all other Indebtedness
(including, without limitation, the repayment of all sums when due under the
Subsidiary Guaranty), it being specifically understood and agreed that this
Amendment shall constitute and be an acknowledgment and continuation of the
rights, remedies, lien and security interest in favor of the Lender, and the
obligations and indebtedness of the Borrower to the Lender, which exist under
the Loan Agreement as amended hereby, each and all of which are and shall
remain applicable to the Collateral.

 

This Amendment confirms and
assures a lien and continuing first priority security interest in the
Collateral heretofore granted in favor of the Lender under the Loan Agreement,
and nothing contained herein shall in any manner impair the priority of such
lien and security interest.

 

7.             In order to induce Lender to enter into this Amendment,
the Borrower hereby represents and warrants to the Lender that as of the date
hereto, each of the representations and warranties set forth in the Loan
Agreement, as amended hereby, are true and correct and the Borrower is in 

 

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full compliance with all of
the terms and conditions of the Loan Agreement, as amended hereby, and no Event
of Default or Default has occurred and is continuing.

 

8.             Except as specifically amended and modified hereby, all
of the terms and conditions of the Loan Agreement shall stand and remain
unchanged and in full force and effect. 
This instrument shall be construed and governed by and in accordance
with the laws of the State of Illinois (exclusive of choice of law principles).

 

9.             Borrower further agrees to reimburse the Lender for its
reasonable legal fees incurred in documenting the aforesaid modifications
hereinabove described.

 

[signature page follows]

 

4

 

IN WITNESS WHEREOF, the
parties have entered into this Twenty-Seventh Amendment to Loan and Security
Agreement as of date first above written.

 

	
  Borrower:

  
	
   

  
	
  BRAD FOOTE GEAR WORKS,
  INC.

  
	
   

  
	
   

  
	
  By: 

  	
  /s/ Steven A. Huntington

  	
   

  
	
  Steven A. Huntington

  
	
  Title:  Chief
  Financial Officer

  
	
   

  
	
   

  
	
  Lender:

  
	
   

  
	
  LASALLE BANK NATIONAL
  ASSOCIATION

  
	
   

  
	
   

  
	
  By: 

  	
  /s/ Matthew Hammer

  	
   

  
	
  Matthew Hammer

  
	
  Title:  Associate
  Vice President

  
				

 

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