Document:

Exhibit 10.34

 

PLEDGE AGREEMENT

 

This PLEDGE AGREEMENT dated as of January 15, 2009 (together with
all amendments, if any, from time to time hereto, this “Agreement”)
between Broadwind Energy, Inc., a Delaware corporation (the “Pledgor”)
and Bank of America, N.A (the “Secured Party”).

 

WITNESSETH:

 

WHEREAS, pursuant to that certain Loan and Security Agreement dated January 17,
1997 (as amended from time to time, the “Loan Agreement”) among Brad
Foote Gear Works, Inc. (f/k/a BFG Acquisition Corp.) (“Borrower”),
as Borrower, and Bank of America, N.A. (f/k/a LaSalle Bank National
Association, f/k/a LaSalle National, f/k/a LaSalle Bank NI), as lender (in such
capacity, the “Lender”), the Lender made term loans (the “Term Loans”)
and has agreed to make revolving loans (the “Revolving Loans”);

 

Whereas, pursuant to the Subsidiary Loan Documents, the Lender has
additionally made term loans to certain subsidiaries of the Borrower (the “Subsidiary
Loans”, and together with the Term Loans and the Revolving Loans, the “Loans”);

 

WHEREAS, the Pledgor has executed and delivered an Unconditional
Guaranty dated as of the date hereof, (the “Guaranty”) of the
obligations of the Borrower, 1309 and 5100 in respect of the Loan Agreement,
the Loan Documents and the Subsidiary Loan Documents and the obligations of the
Pledgor under the Guaranty are to be secured pursuant to this Agreement;

 

WHEREAS, the Pledgor is the record and beneficial owner of the
Securities listed in Part A of Schedule I hereto and
the holder of certain indebtedness or other accounts owed to the Pledgor by
Borrower, 1309 or 5100;

 

WHEREAS, the Pledgor benefits from the credit facilities made available
to Borrower under the Loan Agreement;

 

WHEREAS, in consideration of the Lender making the Loans as provided
for in the Loan Agreement and the Subsidiary Loan Documents, the Pledgor has
agreed to pledge its Pledged Collateral to Lender in accordance herewith;

 

NOW, THEREFORE, in consideration of the premises and the covenants
hereinafter contained and to induce the Lender to make certain amendments to
the Loan Agreement, the other Loan Documents and the Subsidiary Loan Documents,
it is agreed as follows:

 

1.                                     Definitions. 
Unless otherwise defined herein, terms defined in the Loan Agreement are
used herein as therein defined, and the following shall have (unless otherwise
provided elsewhere in this Agreement) the following respective meanings (such
meanings being equally applicable to both the singular and plural form of the
terms defined):

 

“Bankruptcy Code” means title 11, United
States Code, as amended from time to time, and any successor statute
thereto;

 

 

“Pledged Collateral” has the meaning assigned to such term in Section 2
hereof;

 

“Pledged Debt” means all indebtedness or monetary obligations
owed to the Pledgor by Borrower, 1309 or 5100, and any promissory notes or
other evidence thereof;

 

“Pledged Entity” means an issuer of Pledged Securities or
Pledged Debt;

 

“Pledged Entity Acknowledgment” means an acknowledgment
substantially in the form of Schedule III  hereto;

 

“Pledged Securities” means those Securities of the Borrower
owned by the Pledgor;

 

“Secured Obligations” means with respect to the Pledgor all
obligations of the Pledgor to the Lender (including monetary obligations
accrued during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding), howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, now or hereafter existing, or due or to
become due, which arise out of or in connection with (a) its Guaranty and
this Agreement, (b) under any rate management agreement to which the
Pledgor is a party, in  each case as the
same may be amended, modified, extended or renewed from time to time, and (c) treasury
management services (other than treasury management services provided after the
Termination Date) provided to the Pledgor by the Lender or affiliate of the
Lender.

 

“Securities” means all shares, options, warrants, general or
limited partnership interests, membership interests or other equivalents
(regardless of how designated) of or in a corporation, partnership, limited
liability company or equivalent entity whether voting or nonvoting, including
common stock, preferred stock or any other “equity security” (as such term is
defined in Rule 3al1-1 of the General Rules and Regulations
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934).

 

“Termination
Date” means the first date hereafter on which (i) all of the Secured
Obligations described in clause (a) of the definition thereof shall
have been paid in full, (ii) all rate management agreements and all
treasury management agreements between the Lender, on the one hand, and
Borrower, 1309 or 5100, on the other hand, have been terminated and (iii) all
commitments of the Lender to make financial accommodations under the Loan
Documents have terminated.

 

2.                                     Pledge.  The
Pledgor hereby pledges to the Secured Party and grants to the Secured Party a
security interest in all of the Pledgor’s right, title and interest, whether
now owned or held or hereafter acquired, in, to and under the following
(collectively, the “Pledged Collateral”):

 

(a)                                  the Pledged Securities, which as of
the date here of are listed in Part A of Schedule I,  and the certificates, if any, representing such Pledged
Securities, and all dividends, distributions, cash, instruments, options,
warrants and other property or proceeds from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of such
Pledged Securities;

 

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(b)                                 any
additional Securities of the Borrower from time to time acquired by the Pledgor
in any manner (which securities shall be deemed to be part of the Pledged
Securities), and the certificates representing such additional shares, if any,
and all dividends, distributions, cash, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such Securities;

 

(c)                                  the
Pledged Debt, which as of the date hereof is in the amount listed on Part B
of Schedule I, and any instruments and other writings representing
such Pledged Debt, and all interest, principal and other amounts from time to
time received, receivable or otherwise distributed in respect of or in exchange
for any or all of such Pledged Debt;

 

(d)                                 any
additional indebtedness or other monetary obligations owed to the Pledgor by
Borrower, 1309 or 5100 (which indebtedness shall be deemed to be part of the
Pledged Debt), and any instruments representing such additional indebtedness,
and all interest, principal and other amounts from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such debt; and

 

(e)                                  all
proceeds (as such term is defined in Section 9-102(a)(64) of the Uniform
Commercial Code) of such Pledged Collateral.

 

3.                                     Security for Obligations. 
This Agreement secures, and the Pledgor’s Pledged Collateral is security
for, the prompt payment in full when due, whether at stated maturity, by
acceleration or otherwise, and performance of, the Pledgor’s Secured
Obligations including, without limitation, all fees, costs and expenses whether
in connection with collection actions hereunder or otherwise.

 

4.                                     Delivery of Pledged Collateral and
Acknowledgments.  All certificates and all promissory notes and
instruments evidencing the Pledged Collateral shall be delivered to and held by
or on behalf of the Secured Party pursuant hereto.  All Pledged Securities shall be accompanied
by duly executed instruments of transfer or assignment in blank, all in form
and substance satisfactory to the Secured Party.  All promissory notes, instruments or other
writing evidencing Pledged Debt shall be accompanied by (i) an allonge or
such other endorsement as may be requested by the Secured Party and (ii) a
subordination agreement in form and substance satisfactory to the Secured Party
in its sole discretion.  The
Pledgor shall cause each Pledged Entity to execute a Pledged Entity
Acknowledgement.

 

5.                                     Representations and Warranties. 
The Pledgor represents and warrants to the Secured Party with respect to
itself and its Pledged Collateral that:

 

(a)                                  The
Pledgor is, and at the time of delivery of the Pledged Securities to the
Secured Party will be, the sole holder of record and the sole beneficial owner
of such Pledged Collateral pledged by the Pledgor free and clear of any lien
thereon or affecting the title thereto, except for Permitted Liens; the Pledgor
is and at the time of delivery of the Pledged Debt to the Secured Party will
be, the sole owner 

 

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of such Pledged
Collateral free and clear of any lien thereon or affecting title thereto,
except for Permitted Liens;

 

(b)                                 All of its Pledged Securities have
been duly authorized, validly issued and are fully paid and non-assessable;

 

(c)                                  All
of its Pledged Debt is subordinated to all Guaranteed Obligations (as defined
in the Guaranty);

 

(d)                                 The Pledgor has the right and
requisite authority to pledge, assign, transfer, deliver, deposit and set over
the Pledged Collateral pledged by the Pledgor to the Secured Party as provided
herein;

 

(e)                                  None of the Pledged Securities has
been issued or transferred in violation of the securities registration,
securities disclosure or similar laws of any jurisdiction to which such
issuance or transfer may be subject;

 

(f)                                    All of the Pledged Securities are
presently owned by the Pledgor, and are either presently uncertificated or
represented by the certificates as listed on Part A of Schedule I  hereto. 
As of the date hereof, there are no existing options, warrants, calls or
commitments of any character whatsoever relating to such Pledged
Securities.  All of the Pledged Debt is
presently owned by Pledgor and is presently represented by the promissory notes
or other instruments listed on Part B of Schedule I hereto.

 

(g)                                 No consent, approval, authorization
or other order or other action by, and no notice to or filing with, any
governmental authority or any other Person is required (i) for the pledge
by the Pledgor of its Pledged Collateral pursuant to this Agreement or for the
execution, delivery or performance of this Agreement by the Pledgor, or (ii) for
the exercise by the Secured Party of the voting or other rights provided for in
this Agreement or the remedies in respect of the Pledged Collateral pursuant to
this Agreement, except as may be required in connection with such disposition
by laws affecting the offering and sale of securities generally;

 

(h)                                 The pledge of such Pledged
Collateral pursuant to this Agreement will create a valid lien on, and the
filing of a financing statement against the Pledgor in its state of
organization describing the Pledged Collateral or, in the case of Pledged
Securities represented by certificates and Pledged Debt represented by
promissory notes or other instruments, delivery of such certificate or
promissory note or other instrument together with any necessary stock powers or
allonges, will create a perfected security interest in favor of, the Secured
Party in such Pledged Collateral and the proceeds thereof, securing the payment
of the Secured Obligations, subject to no other lien other than Permitted Liens;

 

(i)                                     This Agreement has been duly
authorized, executed and delivered by the Pledgor and constitutes a legal,
valid and binding obligation of the Pledgor enforceable against the Pledgor in
accordance with its terms;

 

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(j)                                     The Pledged Securities constitute
the percentage of the issued and outstanding Securities of each Pledged Entity
set forth in Part A of Schedule I hereto; and

 

(k)                                  (i) the
Pledgor’s true legal name as registered
in the jurisdiction in which the Pledgor is incorporated, state of
incorporation, organizational identification number as designed by the state of
its incorporation, chief executive office, and principal place of
business (or, if it has more than one place of business, its chief executive
office) are as set forth on Schedule V hereto and the Pledgor has not
maintained its chief executive office and principal place of business at any
other locations during the four months prior to the date hereof; (ii) except
as disclosed on Schedule V, the Pledgor is not now known and during the
five years preceding the date hereof has not previously been known by any trade
name; (iii) except as disclosed on Schedule V, during the five
years preceding the date hereof the Pledgor has not been known by any legal
name different from the one set forth on the signature page of this
Agreement and (iv) except as disclosed on Schedule V, during the
year preceding the date hereof, the Pledgor has not been the subject of any
merger or other corporate reorganization.

 

6.                                     Covenants. 
The Pledgor covenants and agrees with respect to itself and its Pledged
Collateral that until the Termination Date:

 

(a)                                  Without the prior written consent of
the Secured Party, the Pledgor will not sell, assign, transfer, pledge, or
otherwise encumber any of its rights in or to the Pledged Collateral, or any
unpaid dividends, interest or other distributions or payments with respect to
the Pledged Collateral or grant a lien in the Pledged Collateral, other than
Permitted Liens;

 

(b)                                 The Pledgor will, at its expense,
promptly execute, acknowledge and deliver all such instruments and take all
such actions as the Secured Party from time to time may request in order to
ensure to the Secured Party the benefits of the liens in and to the Pledged
Collateral intended to be created by this Agreement, including the filing of
any necessary financing statements, which may be filed by the Secured Party and
will cooperate with the Secured Party, at the Pledgor’s expense, in obtaining
all necessary approvals and making all necessary filings under federal, state,
local or foreign law in connection with such liens or any sale or transfer of
the Pledged Collateral;

 

(c)                                  The Pledgor has and will defend the
title to the Pledged Collateral and the liens of the Secured Party in the
Pledged Collateral against the claim of any Person and will maintain and
preserve such liens; and

 

(d)                                 The
Pledgor will, upon obtaining ownership of any additional Securities or
promissory notes or instruments of a Pledged Entity or Securities or promissory
notes or instruments otherwise required to be pledged to the Secured Party
pursuant to any of the Loan Documents, which Securities, notes or instruments
are not already Pledged Collateral, promptly (and in any event within three (3) Business
Days) (i) deliver to the Secured Party a Pledge Amendment, duly 

 

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executed by the
Pledgor, in substantially the form of Schedule II hereto (a “Pledge
Amendment”) in respect of any such additional Securities, notes or
instruments, pursuant to which the Pledgor shall pledge to the Secured Party
all of such additional Securities, notes and instruments and (ii) shall
deliver all such additional Securities, notes or instruments.  The Pledgor hereby authorizes the Secured
Party to attach each Pledge Amendment to this Agreement and agrees that all
Pledged Securities listed on any Pledge Amendment delivered to the Secured
Party shall for all purposes hereunder be considered Pledged Collateral.

 

(e)                                  The
Pledgor agrees that it shall not, and shall not permit any other Person to,
without the Secured Party’s consent, amend or restate the organizational
documents of any Pledged Entity to opt into Article 8 of the Uniform
Commercial Code or, if not currently represented by certificates, issue
certificates evidencing the Pledged Securities.

 

(f)                                    The
Pledgor agrees that is shall not change the name, identity, structure or chief
executive office or principal place of business of the Pledgor or reorganize
the Pledgor under the laws of another jurisdiction unless (i) the Pledgor
shall have given the Secured Party at least thirty (30) days prior notice of
such change, (ii) obtained any requisite consent under the Loan Agreement
or the other Loan Documents and (iii) taken all actions necessary or as
requested by the Secured Party to ensure that the security interest in its
Pledged Collateral remains a perfected, first priority security interest
subject only to Permitted Liens.

 

7.                                     Pledgor’s Rights. 
As long as no Event of Default shall have occurred and be continuing and
until written notice shall be given to a Pledgor in accordance with Section 8(a) hereof:

 

(a)                                  The Pledgor shall have the right,
from time to time, to vote and give consents with respect to its Pledged Collateral,
or any part thereof for all purposes not inconsistent with the provisions of
this Agreement, the Loan Agreement, the Subsidiary Loan Documents or any other
Loan Document; provided, however, that no vote shall be cast, and no
consent shall be given or action taken, which would have the effect of
impairing the position or interest of the Secured Party in respect of the
Pledged Collateral or which would authorize, effect or consent to (unless and
to the extent expressly permitted by the Loan Agreement):

 

(i)                                   the dissolution or liquidation, in
whole or in part, of a Pledged Entity;

 

(ii)                                the consolidation or merger of a
Pledged Entity with any other Person;

 

(iii)                             the sale, disposition or encumbrance
of all or substantially all of the assets of a Pledged Entity, except for liens
in favor of the Secured Party;

 

(iv)                            any change in the authorized number
of shares, the stated capital or the authorized share capital of a Pledged
Entity or the issuance by it of any additional Securities; or

 

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(v)                                     the alteration of the voting rights
with respect to the Securities of a Pledged Entity; and

 

(b)                              (i)                                        The Pledgor shall be entitled, from
time to time, to collect and receive for its own use all cash dividends and
interest paid in respect of the Pledged Securities to the extent not in
violation of the Loan Agreement, the Subsidiary Loan Documents or the other
Loan Documents other than any and all: (A) dividends and interest
paid or payable other than in cash in respect of any Pledged Collateral, and
instruments and other property received, receivable or otherwise distributed in
respect of, or in exchange for, any Pledged Collateral; (B) dividends and
other distributions paid or payable in cash in respect of any Pledged Securities
in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid-in capital of a
Pledged Entity; and (C) cash paid, payable or otherwise distributed, in
respect of principal of, or in redemption of, or in exchange for, any Pledged
Collateral; provided, however, that until actually paid all
rights to such distributions shall remain subject to the lien created by this
Agreement; provided, further, that the Pledgor hereby
acknowledges that as of the date hereof the Loan Agreement expressly prohibits
the making of any dividends or the payment of any other amounts on any of the
Pledged Collateral other than non-cash payments of interest booked as
capitalized interest by the Pledgor in respect of all such indebtedness or
other accounts owed to the Pledgor by Borrower, 1309 or 5100, and nothing
contained herein shall be deemed to contradict such prohibition or otherwise
authorize any such distributions;
and

 

(ii)                                 all dividends and interest (other
than such cash dividends and interest as are permitted to be paid to the
Pledgor in accordance with clause i above) and all other distributions in
respect of any of the Pledged Securities, whenever paid or made, shall be
delivered to the Secured Party to hold as Pledged Collateral and shall, if
received by the Pledgor, be received in trust for the benefit of the Secured
Party, be segregated from the other property or funds of the Pledgor, and be
forthwith delivered to the Secured Party as Pledged Collateral in the same form
as so received (with any necessary endorsement).

 

8.                                     Defaults and Remedies; Proxy.

 

(a)                                  Upon the occurrence of an Event of
Default and during the continuation of such Event of Default, and concurrently
with written notice to the Pledgor, the Secured Party (personally or through an
agent) in addition to any other remedies available to it under applicable law,
is hereby authorized and empowered to transfer and register in its name or in
the name of its nominee the whole or any part of the Pledged Collateral of the
Pledgor, to exchange certificates or instruments representing or evidencing
Pledged Collateral for certificates or instruments of smaller or larger
denominations, to exercise the voting and all other rights as a holder with
respect thereto, to collect and receive all cash dividends, interest, principal
and other distributions made thereon, to sell in one or more sales after 

 

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ten (10) days’ notice of the time and place of any
public sale or of the time at which a private sale is to take place (which
notice the Pledgor agrees is commercially reasonable) the whole or any part of
the Pledged Collateral and to otherwise act with respect to the Pledged
Collateral as though the Secured Party was the outright owner thereof.  Any sale shall be made at a public or private
sale at the Secured Party’s place of business, or at any place to be named in
the notice of sale, either for cash or upon credit or for future delivery at
such price as the Secured Party may deem fair, and the Secured Party may be the
purchaser of the whole or any part of the Pledged Collateral so sold and hold
the same thereafter in its own right free from any claim of the Pledgor or any
right of redemption.  Each sale shall be
made to the highest bidder, but the Secured Party reserves the right to reject
any and all bids at such sale which, in its discretion, it shall deem
inadequate.  Demands of performance,
except as otherwise herein specifically provided for, notices of sale,
advertisements and the presence of property at sale are hereby waived and any
sale hereunder may be conducted by an auctioneer or any officer or agent of the
Secured Party.  THE PLEDGOR HEREBY
IRREVOCABLY CONSTITUTES AND APPOINTS THE SECURED PARTY AS THE PROXY AND
ATTORNEY-IN-FACT OF THE PLEDGOR WITH RESPECT TO ITS PLEDGED COLLATERAL AFTER
THE OCCURRENCE AND DURING THE CONTINUATION OF AN EVENT OF DEFAULT, INCLUDING
THE RIGHT TO VOTE THE PLEDGED SECURITIES, WITH FULL POWER OF SUBSTITUTION TO DO
SO.  THE APPOINTMENT OF THE SECURED PARTY
AS PROXY AND ATTORNEY-IN-FACT IS COUPLED WITH AN INTEREST AND SHALL BE
IRREVOCABLE UNTIL THE TERMINATION DATE. 
IN ADDITION TO THE RIGHT TO VOTE THE PLEDGED SECURITIES, THE APPOINTMENT
OF THE SECURED PARTY AS PROXY AND ATTORNEY-IN FACT SHALL INCLUDE THE RIGHT TO
EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF
THE PLEDGED SECURITIES WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING
WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND
VOTING AT SUCH MEETINGS).  SUCH PROXY
SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION
(INCLUDING ANY TRANSFER OF ANY PLEDGED SECURITIES ON THE RECORD BOOKS OF THE ISSUER
THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF THE PLEDGED SECURITIES OR ANY
OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE OF AN EVENT OF DEFAULT.  NOTWITHSTANDING THE FOREGOING, THE SECURED
PARTY SHALL NOT HAVE ANY DUTY TO EXERCISE ANY SUCH RIGHT OR TO PRESERVE THE
SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING
SO.

 

(b)                                 If, at the original time or times
appointed for the sale of the whole or any part of the Pledged Collateral, the
highest bid, if there be but one sale, shall be inadequate to discharge in full
all the Secured Obligations, or if the Pledged Collateral be offered for sale
in lots, if at any of such sales, the highest bid for the 

 

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lot offered for sale would indicate to the Secured
Party, in its discretion, that the proceeds of the sales of the whole of the
Pledged Collateral would be unlikely to be sufficient to discharge all the
Secured Obligations, the Secured Party may, on one or more occasions and in its
discretion, postpone any of said sales by public announcement at the time of
sale or the time of previous postponement of sale, and no other notice of such
postponement or postponements of sale need be given, any other notice being
hereby waived; provided, however, that any sale or sales made
after such postponement shall be after ten (10) days notice to the
Pledgor.

 

(c)                                  If, at any time when the Secured
Party, in its sole discretion, determines, following the occurrence and during
the continuance of an Event of Default, that, in connection with any actual or
contemplated exercise of its rights (when permitted under this Section 8)
to sell the whole or any part of the Pledged Securities hereunder, it is
necessary or advisable to effect a public registration of all or part of the
Pledged Collateral pursuant to the Securities
Act of 1933, as amended (or any similar statute then in effect) (the
“Act”), the Pledgor
shall, in an expeditious manner, cause the Pledged Entities to:

 

(i)                                   Prepare and file with the Securities
and Exchange Commission (the “Commission”)
a registration statement with respect to the Pledged Securities and in good
faith use commercially reasonable efforts to cause such registration statement
to become and remain effective;

 

(ii)                                Prepare and file with the Commission
such amendments and supplements to such registration statement and the
prospectus used in connection therewith as may be necessary to keep such
registration statement effective and to comply with the provisions of the Act
with respect to the sale or other disposition of the Pledged Securities covered
by such registration statement whenever the Secured Party shall desire to sell
or otherwise dispose of the Pledged Securities;

 

(iii)                             Furnish to the Secured Party such
numbers of copies of a prospectus and a preliminary prospectus, in conformity
with the requirements of the Act, and such other documents as the Secured Party
may request in order to facilitate the public sale or other disposition of the
Pledged Securities by the Secured Party;

 

(iv)                            Use commercially reasonable efforts
to register or qualify the Pledged Securities covered by such registration
statement under such other securities or blue sky laws of such jurisdictions
within the United States and Puerto Rico as the Secured Party shall request,
and do such other reasonable acts and things as may be required of it to enable
the Secured Party to consummate the public sale or other disposition in such
jurisdictions of the Pledged Securities by the Secured Party;

 

(v)                               Furnish, at the request of the
Secured Party, on the date that shares of the Pledged Collateral are delivered
to the underwriters for sale pursuant to 

 

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such registration or, if the security is not being
sold through underwriters, on the date that the registration statement with
respect to such Pledged Securities becomes effective, (A) an opinion,
dated such date, of the independent counsel representing such registrant for
the purposes of such registration, addressed to the underwriters, if any, and
in the event the Pledged Securities are not being sold through underwriters,
then to the Secured Party, in customary form and covering matters of the type
customarily covered in such legal opinions; and (B) a comfort letter,
dated such date, from the independent certified public accountants of such
registrant, addressed to the underwriters, if any, and in the event the Pledged
Securities are not being sold through underwriters, then to the Secured Party,
in a customary form and covering matters of the type customarily covered by
such comfort letters and as the underwriters or the Secured Party shall
reasonably request.  The opinion of
counsel referred to above shall additionally cover such other legal matters
with respect to the registration in respect of which such opinion is being
given as the Secured Party may reasonably request.  The letter referred to above from the
independent certified public accountants shall additionally cover such other
financial matters (including information as to the period ending not more than
five (5) Business Days prior to the date of such letter) with respect to
the registration in respect of which such letter is being given as the Secured
Party may reasonably request; and

 

(vi)                            Otherwise
use commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as
soon as reasonably practicable but not later than 18 months after the effective
date of the registration statement, an earnings statement covering the period
of at least 12 months beginning with the first full month after the effective
date of such registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Act.

 

(d)                                 All expenses incurred in complying
with Section 8(c) hereof, including, without limitation, all
registration and filing fees (including all expenses incident to filing with
the National Association of Securities Dealers, Inc.), printing expenses,
fees and disbursements of counsel for the registrant, the fees and expenses of
counsel for the Secured Party, expenses of the independent certified public
accountants (including any special audits incident to or required by any such
registration) and expenses of complying with the securities or blue sky laws or
any jurisdictions, shall be paid by the Pledgor.

 

(e)                                  If,
at any time when the Secured Party shall determine to exercise its right to
sell the whole or any part of the Pledged Collateral hereunder, such Pledged
Collateral or the part thereof to be sold shall not, for any reason whatsoever,
be effectively registered under the Act, the Secured Party may, in its
discretion (subject only to applicable requirements of law), sell such Pledged
Collateral or part thereof by private sale in such manner and under such
circumstances as the Secured Party

 

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may deem necessary or advisable, but subject to the
other requirements of this Section 8, and shall not be required to
effect such registration or to cause the same to be effected.  Without limiting the generality of the
foregoing, in any such event, the Secured Party in its discretion (x) may,
in accordance with applicable securities laws, proceed to make such private
sale notwithstanding that a registration statement for the purpose of
registering such Pledged Collateral or part thereof could be or shall have been
filed under said Act (or similar statute), (y) may approach and negotiate
with a single possible purchaser to effect such sale, and (z) may restrict
such sale to a purchaser who is an accredited investor under the Act and who
will represent and agree that such purchaser is purchasing for its own account,
for investment and not with a view to the distribution or sale of such Pledged
Collateral or any part thereof.  In
addition to a private sale as provided above in this Section 8, if
any of the Pledged Collateral shall not be freely distributable to the public
without registration under the Act (or similar statute) at the time of any
proposed sale pursuant to this Section 8, then the Secured Party
shall not be required to effect such registration or cause the same to be
effected but, in its discretion (subject only to applicable requirements of
law), may require that any sale hereunder (including a sale at auction) be
conducted subject to restrictions:

 

(i)                                     as to the financial sophistication and ability
of any Person permitted to bid or purchase at any such sale;

 

(ii)                                  as to the content of legends to be placed upon
any certificates representing the Pledged Collateral sold in such sale,
including restrictions on future transfer thereof;

 

(iii)                               as to the representations required to be made
by each Person bidding or purchasing at such sale relating to that Person’s
access to financial information about the Pledgor and such Person’s intentions
as to the holding of the Pledged Collateral so sold for investment for its own
account and not with a view to the distribution thereof; and

 

(iv)                              as to such other matters as the Secured Party
may, in its discretion, deem necessary or appropriate in order that such sale
(notwithstanding any failure so to register) may be effected in compliance with
the Bankruptcy Code and other
laws affecting the enforcement of creditors’ rights and the Act and all
applicable state securities laws.

 

(f)                                    The Pledgor recognizes that the Secured Party
may be unable to effect a public sale of any or all the Pledged Collateral and
may be compelled to resort to one or more private sales thereof in accordance
with clause (e) above.  The
Pledgor also acknowledges that any such private sale may result in prices and
other terms less favorable to the seller than if such sale were a public sale
and, notwithstanding such circumstances, agrees that any such private sale
shall not be deemed to have been made in a commercially unreasonable manner
solely by virtue of such sale being private. 
the Secured Party shall be under no obligation to delay a sale of 

 

11

 

any of the Pledged
Collateral for the period of time necessary to permit the Pledged Entity to
register such securities for public sale under the Act, or under applicable
state securities laws, even if the Pledgor and the Pledged Entity would agree
to do so.

 

(g)                                 The Pledgor agrees to
the maximum extent permitted by applicable law that following the occurrence
and during the continuance of an Event of Default it will not at any time
plead, claim or take the benefit of any appraisal, valuation, stay, extension,
moratorium or redemption law now or hereafter in force in order to prevent or
delay the enforcement of this Agreement, or the absolute sale of the whole or
any part of the Pledged Collateral or the possession thereof by any purchaser
at any sale hereunder, and the Pledgor waives the benefit of all such laws to
the extent it lawfully may do so.  The
Pledgor agrees that it will not interfere with any right, power and remedy of
the Secured Party provided for in this Agreement or now or hereafter existing
at law or in equity or by statute or otherwise, or the exercise or beginning of
the exercise by the Secured Party of any one or more of such rights, powers or
remedies.  No failure or delay on the
part of the Secured Party to exercise any such right, power or remedy and no
notice or demand which may be given to or made upon the Pledgor by the Secured
Party with respect to any such remedies shall operate as a waiver thereof, or
limit or impair the Secured Party’s right to take any action or to exercise any
power or remedy hereunder, without notice or demand, or prejudice its rights as
against the Pledgor in any respect.

 

(h)                                 The
Pledgor further agrees that a breach of any of the covenants contained in this Section 8
will cause irreparable injury to the Secured Party, that the Secured Party
shall have no adequate remedy at law in respect of such breach and, as a
consequence, agrees that each and every covenant contained in this Section 8
shall be specifically enforceable against the Pledgor, and the Pledgor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that the Secured Obligations
are not then due and payable in accordance with the agreements and instruments
governing and evidencing such obligations.

 

(i)                                     The
powers conferred on the Secured Party herein are solely to protect its interest
in the Pledged Collateral and shall not impose any duty on it to exercise any
such powers.  Except for reasonable care
of any Collateral in its possession, the Secured Party shall have no duty with
respect to any Pledged Collateral.

 

9.                                       No
Waiver; Remedies Cumulative.  The
Secured Party shall not by any act (except by a written instrument pursuant to Section 14(d)),
delay, indulgence, omission or otherwise be deemed to have waived any right or
remedy hereunder or to have acquiesced in any default or in any breach of any
of the terms and conditions hereof.  No
single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.  No remedy or
right of the Secured Party hereunder, under any of the Subsidiary Loan Document
or any of the Loan Documents or otherwise available under applicable law or in
equity, shall be exclusive of any other right or remedy.  Each such 

 

12

 

remedy or right shall be
in addition to every other remedy or right now or hereafter existing under
applicable law or in equity.  No delay in
the exercise of, or omission to exercise, any remedy or right after any Event
of Default shall impair any such remedy or right or be construed as a waiver of
any such Event of Default or an acquiescence thereto, nor shall it affect any
subsequent Event of Default of the same or different nature.  A waiver by the Secured Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Secured Party would otherwise have on any future
occasion.  The rights, remedies, powers
and privileges herein provided are cumulative, may be exercised singly or
concurrently; are not exclusive of any rights, remedies, powers or privileges
provided by applicable law; and may be exercise when and as often as may be
deemed necessary by the Secured Party.

 

10.                                 Assignment. 
The Secured Party may assign, indorse or transfer any instrument
evidencing all or any part of the Secured Obligations as provided in, and in
accordance with, the Loan Agreement, the Subsidiary Loan Documents or the other
Loan Documents and the holder of such instrument shall be entitled to the
benefits of this Agreement.

 

11.                                 Lien Absolute. 
All rights of the Secured Party hereunder, and all obligations of
the Pledgor hereunder, shall be absolute and unconditional irrespective of:

 

(a)                                  any lack of validity or
enforceability of the Loan Agreement, any Subsidiary Loan Document, any other
Loan Document or any other agreement or instrument governing or evidencing any
Secured Obligations;

 

(b)                                 any change in the time, manner or place of
payment of, or in any other term of, all or any part of the Secured
Obligations, or any other amendment or waiver of or any consent to any
departure from the Loan Agreement, any Subsidiary Loan Document, any other Loan
Document or any other agreement or instrument governing or evidencing any
Secured Obligations;

 

(c)                                  any addition, exchange, release or non-perfection
of any other Collateral, or any release or amendment or waiver of or consent to
departure from any guarantee, for all or any of the Secured Obligations;

 

(d)                                 the insolvency of the Borrower, the Pledgor or
any other Guarantor; or

 

(e)                                  any other circumstance which might otherwise
constitute a defense available to, or a discharge of, the Pledgor.

 

12.                                 Release.  The
Pledgor consents and agrees that the Secured Party may at any time, or from
time to time, in its discretion:

 

(a)                                  renew, extend or change the time of payment,
and/or the manner, place or terms of payment of all or any part of the Secured
Obligations; and

 

(b)                                 exchange,
release and/or surrender all or any of the collateral (including the Pledged
Collateral), or any part thereof, by whomsoever deposited, which is now or may
hereafter be held by the Secured Party in connection with all or any of the

 

13

 

Secured Obligations; all in such manner and upon such
terms as the Secured Party may deem proper, and without notice to or further
assent from the Pledgor, it being hereby agreed that the Pledgor shall be and
remain bound upon this Agreement, irrespective of the value or condition of any
of the Collateral, and notwithstanding any such change, exchange, settlement,
compromise, surrender, release, renewal or extension, and notwithstanding also
that the Secured Obligations may, at any time, exceed the aggregate principal
amount thereof set forth in the Loan Agreement, or any other agreement governing
any Secured Obligations.  The Pledgor
hereby waives notice of acceptance of this Agreement, and also presentment,
demand, protest and notice of dishonor of any and all of the Secured
Obligations, and promptness in commencing suit against any party hereto or
liable hereon, and in giving any notice to or of making any claim or demand
hereunder upon the Pledgor.  No act or
omission of any kind on the Secured Party’s part shall in any event affect or
impair this Agreement.

 

13.                                 Reinstatement. 
This Agreement shall remain in full force and effect and continue
to be effective should any petition be filed by or against the Pledgor or any
Pledged Entity for liquidation or reorganization, should the Pledgor or any
Pledged Entity become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any
significant part of the Pledgor’s or a Pledged Entity’s assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise
be restored or returned by any obligee of the Secured Obligations, whether as a
“voidable preference”, “fraudulent conveyance”, or otherwise, all as though
such payment or performance had not been made. 
In the event that any payment, or any part thereof, is rescinded,
reduced, restored or returned, the Secured Obligations shall be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

 

14.                                 Miscellaneous.

 

(a)                                  the Secured Party may execute any of its duties
hereunder by or through agents or employees and shall be entitled to advice of
counsel concerning all matters pertaining to its duties hereunder.

 

(b)                                 The Pledgor agrees to
promptly reimburse the Secured Party for actual out-of-pocket expenses,
including, without limitation, reasonable counsel fees, incurred by the Secured
Party in connection with the administration and enforcement of this Agreement.

 

(c)                                  Neither the Secured
Party, nor any of its respective officers, directors, employees, agents or
counsel shall be liable for any action lawfully taken or omitted to be taken by
it or them hereunder or in connection herewith, except for its or their own
gross negligence or willful misconduct as finally determined by a court of
competent jurisdiction.

 

(d)                                 THIS
AGREEMENT SHALL BE BINDING UPON THE PLEDGOR AND ITS SUCCESSORS AND ASSIGNS
(INCLUDING A DEBTOR-IN-POSSESSION

 

14

 

ON BEHALF OF THE PLEDGOR), AND SHALL INURE TO THE
BENEFIT OF, AND BE ENFORCEABLE BY, THE SECURED PARTY AND ITS SUCCESSORS AND
ASSIGNS.  NONE OF THE TERMS OR PROVISIONS
OF THIS AGREEMENT MAY BE WAIVED, ALTERED, MODIFIED OR AMENDED EXCEPT
PURSUANT TO A JOINDER OR BY A WRITING DULY SIGNED FOR AND ON BEHALF OF THE
SECURED PARTY AND THE PLEDGOR.

 

15.                                 Governing
law; Consent to Jurisdiction and Venue; Waiver of Jury Trial.

 

(a)                                  GOVERNING
LAW.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
ILLINOIS (INCLUDING 735 ILCS SECTION 105/5-5) BUT OTHERWISE WITHOUT GIVING
EFFECT TO ANY OF SUCH STATE’S CONFLICT-OF-LAW PROVISIONS, EXCEPT TO THE EXTENT
THAT PERFECTION, THE EFFECT OF PERFECTION OR NONPERFECTION, OR THE PRIORITY OF
THE SECURITY INTEREST GRANTED HEREUNDER MAY BE DETERMINED IN ACCORDANCE
WITH THE UNIFORM COMMERCIAL CODE OF A DIFFERENT JURISDICTION IN ACCORDANCE
WITH ILLINOIS LAW.

 

(b)                                 SUBMISSION
TO JURISDICTION.  THE PLEDGOR
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE
UNITED STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF ILLINOIS IN EACH CASE
SITTING IN COOK COUNTY, ILLINOIS, AND ANY APPELLATE COURT FROM ANY THEREOF, IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND
EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL
CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH ILLINOIS STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT. 
EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW.  NOTHING IN THIS AGREEMENT OR IN ANY
OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE SECURED PARTY MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AGAINST THE PLEDGOR OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

 

15

 

(c)                                  WAIVER
OF VENUE.  THE PLEDGOR IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION 15.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

 

(d)                                 WAIVER OF JURY TRIAL.  EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 15.

 

16.                                 Severability. 
If for any reason any provision or provisions hereof are determined to
be invalid and contrary to any existing or future law, such invalidity shall
not impair the operation of or effect those portions of this Agreement which
are valid.

 

17.                                 Notices.  Except as otherwise provided herein, whenever it is provided herein that
any notice, demand, request, consent, approval, declaration or other
communication shall or may be given to or served upon any of the parties by any
other party, or whenever any of the parties desires to give or serve upon any
other a communication with respect to this Agreement, each such notice, demand,
request, consent, approval, declaration or other communication shall be in
writing and either shall be delivered in person or sent by registered or
certified mail, return receipt requested, with proper postage prepaid, or by facsimile
transmission and confirmed by delivery of a copy by personal delivery or United
States Mail as otherwise provided herein:

 

16

 

If to the Secured Party, at:

 

	
   

  	
  Bank of America, N.A.

  
	
   

  	
  One Federal Street

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Attention: Sandra H. Bennett

  
	
   

  	
  Fax:
  (617) 346-0877

  

 

If to the
Pledgor, at its address set forth below its signature on the signature pages hereto
or at such other address as may be substituted by notice given as herein
provided.  The giving of any notice
required hereunder may be waived in writing by the party entitled to receive
such notice.  Every notice, demand,
request, consent, approval, declaration or other communication hereunder shall
be deemed to have been duly served, given or delivered (a) upon the
earlier of actual receipt and three (3) Business Days after deposit in the
United States Mail, registered or certified mail, return receipt requested,
with proper postage prepaid, (b) upon transmission, when sent by telecopy
or other similar facsimile transmission (with such telecopy or facsimile
promptly confirmed by delivery of a copy by personal delivery or United States
Mail as otherwise provided in this Section 16, (c) one (1) Business
Day after deposit with a reputable overnight courier with all charges prepaid,
or (d) when delivered, if hand-delivered by messenger.  Failure or delay in delivering copies of any
notice, demand, request, consent, approval, declaration or other communication
to the persons designated above to receive copies shall in no way adversely
affect the effectiveness of such notice, demand, request, consent, approval,
declaration or other communication.

 

18.                                 Section Titles. 
The Section titles contained in this Agreement are and shall be
without substantive meaning or content of any kind whatsoever and are not a
part of the agreement between the parties hereto.

 

19.                                 Counterparts.  This Agreement may be executed in any number of counterparts, which
shall, collectively and separately, constitute one agreement.

 

20.                                 Authorization. 
The Pledgor hereby irrevocably authorizes the Secured Party at any time
and from time to time to file in any filing office in any Uniform Commercial
Code jurisdiction any initial financing statements and amendments thereto that (a) indicate
the Pledged Collateral and (b) contain any other information required by
part 5 of Article 9 of the Code for the sufficiency or filing office
acceptance of any financing statement or amendment, including whether the
Pledgor is an organization, the type of organization and any organization
identification number issued to the Pledgor. 
The Pledgor agrees to furnish any such information to the Secured Party
promptly upon request.  The Pledgor also
ratifies its authorization for the Secured Party to have filed in any Uniform
Commercial Code jurisdiction any initial financing statements or amendments
thereto if filed prior to the, date hereof.

 

21.                                 Termination. 
Immediately following the Termination Date, the Secured Party shall
deliver to Pledgor the Pledged Collateral at such time subject to this
Agreement and all instruments of assignment executed in connection therewith,
free and clear of all liens and encumbrances hereof and, except as otherwise
provided herein, all of Pledgor’s obligations hereunder shall at such time
terminate.

 

17

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first written above.

 

	
   

  	
  BROADWIND
  ENERGY, Inc.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ J. Cameron Drecoll

  
	
   

  	
  Name: J.
  Cameron Drecoll

  
	
   

  	
  Title: Chief
  Executive Officer

  

 

Pledge Agreement Signature Page

 

S-1

 

	
   

  	
  BANK OF
  AMERICA, N.A., as the Secured Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Katherine M. Novey

  
	
   

  	
  Name:
  Katherine M. Novey

  
	
   

  	
  Title:
  Senior Vice President

  

 

Sch. V - 1

 

SCHEDULE I

PART A 

PLEDGED SECURITIES

 

	
  Pledged Entity

  	
   

  	
  Class of

  Security

  	
   

  	
  Certificate

  Number(s)

  	
   

  	
  Number of

  Securities

  	
   

  	
  Percentage of

  Securities Issued

  	
   

  
	
  Brad Foote Gear
  Works, Inc.

  	
   

  	
  Common

  	
   

  	
  8

  	
   

  	
  1,000

  	
   

  	
  100%

  	
   

  

 

I-1

 

PART B 

PLEDGED DEBT

 

	
  Pledged Entity

  	
   

  	
  Type of Debt

  	
   

  	
  Principal Amount

  	
   

  	
  Written Evidence

  of Debt (title and

  date of instrument

  and maturity date)

  	
   

  
	
  Brad Foote Gear
  Works, Inc.

  	
   

  	
  Intercompany Payable

  	
   

  	
  $30,981,951.00 as of December 31, 2008

  	
   

  	
  None

  	
   

  

 

I-2

 

SCHEDULE II

PLEDGE AMENDMENT

 

This
Pledge Amendment, dated             ,
     is delivered pursuant to Section 6(d) of
the Pledge Agreement referred to below. All defined terms herein shall have the
meanings ascribed thereto or incorporated by reference in the Pledge Agreement.
The undersigned hereby certifies that the representations and warranties in Section 5
of the Pledge Agreement are and continue to be true and correct, both as to the
promissory notes, instruments and shares pledged prior to this Pledge Amendment
and as to the promissory notes, instruments and shares pledged pursuant to this
Pledge Amendment. The undersigned further agrees that this Pledge Amendment may
be attached to that certain Pledge Agreement, dated January 15, 2009
between undersigned, as the Pledgor, and Bank of America, N.A., as the Secured
Party (the “Pledge Agreement”) and that the Pledged
Securities and Pledged Debt listed on this Pledge Amendment shall be and become
a part of the Pledged Collateral referred to in said Pledge Agreement and shall
secure all Secured Obligations referred to in said Pledge Agreement. The
undersigned acknowledges that any promissory notes, instruments or shares not
included in the Pledged Collateral at the discretion of the Secured Party may
not otherwise be pledged by the Pledgor to any other Person or otherwise used
as security for any obligations other than the Secured Obligations.

 

	
   

  	
  BROADWIND ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
  Pledged Entity

  	
   

  	
  Class of

  Security

  	
   

  	
  Certificate

  Number(s)

  	
   

  	
  Number of

  Securities

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Pledged Entity

  	
   

  	
  Type of Debt

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II-1

 

SCHEDULE III

PLEDGED ENTITY ACKNOWLEDGMENT

 

The undersigned hereby joins in the execution of the
Pledge Agreement dated as of January 15, 2009 made by Broadwind Energy, Inc.
(the “Owner”), in favor of Bank of America, N.A., in its capacity as the
Secured Party, as the same may be amended, restated, supplemented or otherwise
modified from time to time (the “Agreement”), for the purposes of
agreeing to (i) act at the sole direction and upon the instructions of the
Secured Party with respect to the [shares/partnership interests/membership
interests] in the undersigned owned by the Owner without any further action or
consent of, or regardless of any contrary intent expressed by, the Owner and (ii) act
in accordance with the terms and provisions of the Agreement, as such terms and
provisions apply to the undersigned.

 

	
   

  	
  [Pledged Entity]:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

III-1

 

SCHEDULE V

 

CORPORATE INFORMATION

 

	
  Legal Name of Pledgor

  	
   

  	
  Jurisdiction
  of

  Formation

  and type of

  Organization

  	
   

  	
  Organization

  Number

  	
   

  	
  Location
  of Principal

  Place of Business

  	
   

  	
  Location
  of Chief

  Executive Office

  	
   

  	
  Trade
  Names and Prior

  Names

  	
   

  
	
  Broadwind
  Energy, Inc.

  	
   

  	
  Delaware corporation

  	
   

  	
  4564829

  	
   

  	
  47 E. Chicago Avenue

  Suite 332

  Naperville, Illinois 60540

  	
   

  	
  47 E. Chicago Avenue

  Suite 332

  Naperville, Illinois 60540

  	
   

  	
  Tower Tech Holdings,
  Inc.

   

  Blackfoot Enterprises,
  Inc.

  	
   

  

 

MERGERS OR CORPORATE REORGANIZATIONS IN 2008:

 

1.             On June 20, 2008, the Pledgor was
converted from a Nevada corporation to a Delaware corporation.

 

V-1Exhibit 10.88

 

SECOND OMNIBUS AMENDMENT AGREEMENT

 

THIS SECOND OMNIBUS AMENDMENT
AGREEMENT, dated as of March 13, 2009 (this “Amendment”), is by and
among BRAD FOOTE GEAR WORKS, INC. (f/k/a BFG Acquisition Corp.), an Illinois
corporation (the “Borrower”), 1309 SOUTH CICERO AVENUE, LLC, a Delaware
limited liability company (“1309”), 5100 NEVILLE ROAD, LLC, a Delaware
limited liability company (“5100” and, together with 1309, the “Subsidiaries”)
and BANK OF AMERICA, N.A., (f/k/a LaSalle Bank National Association, f/k/a
LaSalle National Bank, f/k/a LaSalle Bank N.I.) (the “Lender”).

 

WHEREAS, the Borrower is party
to (i) that certain Loan and Security Agreement, dated as of January 17,
1997 (as amended to date, the “Loan Agreement”; capitalized terms used
herein, but not otherwise defined herein, shall have the meanings given them in
(or by reference in) the Loan Agreement ), by and between the Borrower and the
Lender, (ii) that certain Amended and Restated Renewal Revolving Note,
dated as of December 9, 2008 (as amended or otherwise modified from time
to time, the “Revolving Note”) in favor of the Lender, (iii) that
certain Consolidated Term Note, dated as of February 1, 2006 (as amended
or otherwise modified from time to time, the “Term Note”) in favor of
the Lender, (iv) that certain Amended and Restated Equipment Line Note,
dated as of November 10, 2006 (as amended or otherwise modified from time
to time, the “Equipment Note”) in favor of the Lender and (v) that
certain Equipment Line Note, dated as of June 30, 2007 (as amended or
otherwise modified from time to time, the “Equipment Note No. 2”)
in favor of the Lender;

 

WHEREAS, the Subsidiaries are
party to that certain Term Note, dated as of January 31, 2008 (as amended
or otherwise modified from time to time, the “Subsidiary Note”) and the
Borrower has guaranteed the obligations of the Subsidiary Note pursuant to that
certain Unconditional Guaranty, dated as of January 31, 2008 (as amended
or otherwise modified from time to time, the “Subsidiary Guaranty”);

 

NOW, THEREFORE, in
consideration of the premises and for other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged), the parties
hereto agree to amend the above referenced documents as follows:

 

SECTION 1.                                AMENDMENTS TO LOAN
AGREEMENT.  Effective as of the Amendment
Effective Date (as hereinafter defined), the Loan Agreement shall be amended as
follows:

 

1.1                                 Section 1.1
of the Loan Agreement shall be amended as follows:

 

(a)                                  The
following definition of “Intercompany Trade Payable” shall be added in the
appropriate alphabetical order:

 

“Intercompany
Trade Payable” shall mean any trade debt incurred in the ordinary
course of business owing by the Borrower to any Affiliate of the Borrower or by
any Affiliate of the Borrower to the Borrower.”

 

 

(b)                                 The
definition of “Intercompany Debt” shall be amended by deleting the current
definition and replacing the same in its entirety as follows:

 

“Intercompany
Debt” shall mean all indebtedness owed by the Borrower to
Affiliates.”

 

(c)                                  The
definition of “Subordinated Debt” shall be amended to delete the parenthetical
therein in its entirety.

 

(d)                                 The
definitions of “Borrowing Base”, “Borrowing Base Certificate”, “Cash Flow
Coverage”, “Cash Interest Expense”, “Commitment Amount”, “Disbursement Date”, “Eligible
Accounts”, “Eligible Inventory”, “EBIT”, “Equipment Lease”, “Leased Equipment”,
“Reserve”, “Reserve Elimination Date”, “Seller/Bank Intercreditor Agreement”, “Seller
Note”, “Security Agreement-Leased Equipment”, “Tangible Net Worth” and “Termination
Date” and all references to such terms contained in the Loan Agreement shall be
deleted in their entireties.

 

1.2                                 Section 2.1
of the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“Revolving Credit
Commitment.  The Revolving Credit
Commitment is terminated and the Lender shall have no obligation to make
additional Revolving Loans to the Borrower and the Borrower shall not request
additional Revolving Loans to be made.”

 

1.3                                 Sections
2.2, 2.6, 2.6A, 2.6A.1, 2.7, 2.8, 2.9 (including the paragraphs appearing after
the heading “2.9” and before Section 3), 3.2, 13.2, 13.2A and 13.3 of the
Loan Agreement shall be deleted in their entirety and replaced with the
following:

 

“[Intentionally Deleted]”.

 

1.4                                 Section 2.3
of the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“The Revolving
Loan shall be evidenced by an amended and restated renewal revolving note,
executed by the Borrower, dated December 9, 2008 and in the principal sum
of Seven Million and 00/100 ($7,000,000.00) Dollars (together with any and all
extensions, renewals, amendments, refinancings, modifications, conversions or
consolidations thereof or thereto, hereafter, the “Revolving Note”).  The aggregate unpaid principal amount of the
Revolving Note as of March 13, 2009, after giving effect to the paydown of
principal on such date, is $2,500,000. 
The Revolving Note shall be payable to the order of the Lender in
successive monthly installments of principal in the sum of $113,637.00, which
shall be due and payable on the last Business Day of each month commencing April 2009.

 

Interest on the Revolving Note shall be payable at the times, in the
manner, and at the applicable rates set forth in the Revolving Note. Interest
on the Revolving Note shall be calculated on the basis of a 360-day year for
the actual number of days the principal is outstanding.  In addition, a late charge equal to
five percent (5%) of each late payment may be charged on any payment not
received by the Lender within five (5) calendar days 

 

2

 

after the payment due
date, but acceptance of payment of this charge shall not waive any Default or
Event of Default.”

 

1.5                                 Section 3
of the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“The Lender has
previously made the following loans to Borrower:  (i) a consolidated term loan in the
principal sum of $6,096,791.00 evidenced by Borrower’s amended and restated
consolidated term note dated April 29, 2004 in said principal sum, payable
to the order of Lender in installments of principal plus interest as therein
described, and (ii) a $3,000,000.00 non-revolving equipment line of credit
loan with term conversion evidenced by Borrower’s amended and restated
equipment line note dated November 15, 2004 payable to the order of Lender
in installments of principal plus interest as therein described, and (iii) a
$1,500,000.00 non-revolving equipment line of credit loan with term conversion
evidenced by Borrower’s equipment line note dated June 15, 2005 payable to
the order of Lender in installments of principal plus interest as therein
described.  Lender consolidated the
outstanding principal balances of such loans into one consolidated term loan in
the amount of $7,899,332.98 and extended such loan (hereafter, such
consolidated and extended loan, together with any and all extensions, renewals,
amendments, refinancings, modifications, conversions or consolidations thereof
or thereto, hereafter called the “Term Loan”). 
The Term Loan is evidenced by a consolidated term note dated February 1,
2006 executed by Borrower, in the principal sum of Seven Million Eight Hundred
Ninety Nine Thousand Three Hundred Thirty Two and 98/100 ($7,899,332.98)
Dollars (such note, together with any and all extensions, renewals, amendments,
refinancings, modifications, conversions or consolidations thereof or thereto,
hereafter called the (“Term Note”), payable to the order of the Lender in
successive monthly installments of principal in the sum of $131,655.55 each, by
a final payment of the entire unpaid principal balance and accrued interest due
on January 31, 2011.  Interest on
the Term Note is payable at the times, in the manner, and at the applicable
rates set forth in the Term Note. 
Interest on the Term Note is calculated on the basis of a 360-day year
for the actual number of days the principal is outstanding.”

 

1.6                                 (a) 
Section 3A of the Loan Agreement shall be amended and restated in its
entirety to read as follows:

 

“The Lender extended to
the Borrower a non-revolving equipment line of credit (such loan, together with
any and all extensions, renewals, amendments, refinancings, modifications,
conversions or consolidations thereof or thereto, the “Equipment Loan”). The
Equipment Loan is evidenced by an amended and restated equipment line note
dated November 10, 2006 executed by Borrower, in the principal sum of
Eleven Million and 00/100 ($11,000,000.00) Dollars (such note, together with
any and all extensions, renewals, amendments, refinancings, modifications,
conversions or consolidations thereof or thereto, the “Equipment Note”).  The Equipment Note is payable to the order of
the Lender in installments of principal and interest, calculated at the applicable
rate set forth in the Equipment Note, the terms of which are incorporated
herein by reference.”

 

3

 

(b)                                 There
shall be only one Section 3A of the Loan Agreement to read as stated
above, and any additional Section 3A that may have been added by a prior
amendment is hereby deleted in its entirety.

 

1.7                                 (a) 
Section 3B of the Loan Agreement shall be amended and restated in its
entirety to read as follows:

 

“The Lender extended to
the Borrower a non-revolving equipment line of credit (such loan, together with
any and all extensions, renewals, amendments, refinancings, modifications,
conversions or consolidations thereof or thereto, the “Equipment Loan No. 2”).
The Equipment Loan No. 2 is evidenced by an equipment line note dated June 30,
2007 executed by Borrower, in the principal sum of Nine Million and 00/100
($9,000,000.00) Dollars (such note, together with any and all extensions,
renewals, amendments, refinancings, modifications, conversions or consolidations
thereof or thereto, the “Equipment Note No. 2”).  The Equipment Note No. 2 is payable to
the order of the Lender in installments of principal and interest, calculated
at the applicable rate set forth in the Equipment Note No. 2, the terms of
which are incorporated herein by reference.”

 

(b)                             There
shall be only one Section 3B of the Loan Agreement to read as stated
above, and any additional Section 3B that may have been added by a prior
amendment is hereby deleted in its entirety.

 

1.8                                 Section 8.2
of the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“Borrower shall keep
accurate and complete records of its Accounts. 
Borrower shall deliver to Lender upon demand, the original copy of all
documents, including, without limitation, repayment histories, present status
reports and shipment reports, relating to the Accounts and such other matters
and information relating to the status of then existing Accounts as Lender
shall reasonably request.”

 

1.9                                 Section 8.3
of the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“Borrower shall give
Lender prompt written notice of any Accounts in excess of Twenty-Five Thousand
and no/100 ($25,000.000) Dollars which are in dispute between any Account
Debtor and Lender.”

 

1.10                           Section 9.4
of the Loan Agreement shall be amended by deleting the first sentence thereof
in its entirety.

 

1.11                           Section 10
of the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“                                          As
soon as available, but not later than February 15 of each year, Borrower
shall deliver to the Lender preliminary, internally prepared, unaudited
financial statements of Borrower and its Subsidiaries, containing the balance
sheet of the Borrower and its 

 

4

 

Subsidiaries as of the
close of the prior fiscal year, statements of income and retained earnings and
a statement of cash flows for the prior fiscal year; and such other comments
and financial details as are usually included in similar reports.  Such financial statements shall be in form
and reporting basis satisfactory to the Lender and be prepared in accordance
with GAAP.

 

As soon as
available, but not later than one hundred twenty (120) days after the end of
each fiscal year of Parent and its Subsidiaries (hereafter, collectively “Broadwind”),
Borrower shall deliver to the Lender annual financial statements of Broadwind,
consisting of audited consolidated balance sheets, statements of income, cash
flows and changes in shareholders’ equity and, unaudited consolidating balance
sheets and statements of income, setting forth in comparative form the
consolidated figures for the previous fiscal year; and such other comments and
financial details as are usually included in similar reports.  Such financial statements shall (a) be
prepared in accordance with GAAP by an independent certified public accounting
firm selected by the Borrower and acceptable to the Lender (“Borrower’s
Accounting Firm”) and (b) contain unqualified opinions as to the fairness
of the statements therein contained. 
Borrower shall also provide to the Lender any management letters that
may accompany such statements.

 

As soon as
available, but not later than forty-five (45) days after the end of each fiscal
quarter, Borrower shall deliver to the Lender (i) internally prepared
quarterly financial statements of Borrower, in form and content satisfactory to
Lender, and (ii) a quarterly covenant compliance certificate, in form and
content satisfactory to Lender (including a certificate by the chief executive
or financial officer of Borrower containing a computation of, and showing
compliance with, each of the financial covenants contained in Section 14.1
hereof).  The validity and accuracy of
said financial statements shall be certified by the chief executive or
financial officer of the Borrower, in a form satisfactory to the Lender.

 

As soon as available, not later than forty-five (45) days after the
close of each of the first three fiscal quarters of each fiscal year of Broadwind,
the Borrower shall deliver to the Lender a copy of the unaudited consolidated
balance sheet of Broadwind, as of the close of such quarter and the related
consolidated statements of income, cash flows and changes in shareholders’
equity for that portion of the fiscal year ending as of the close of such
fiscal quarter, all prepared in accordance with GAAP (subject to normal
year-end adjustments and except that footnote and schedule disclosure may be
abbreviated)  accompanied by the
certification of the chief executive or financial officer of Broadwind that all
such financial statements are complete and correct in all material respects and
present fairly in accordance with GAAP (subject to normal year-end adjustments
and except that footnote and schedule disclosure may be abbreviated) of
Broadwind as at the end of such fiscal quarter.

 

As soon as
available, but not later than fifteen (15) days after the end of each calendar
month, Borrower shall deliver to the Lender (i) a monthly accounts
receivable aging and a monthly accounts payable aging and (ii) internally
prepared monthly financial statements of Borrower and Parent, in form and
content satisfactory to Lender, 

 

5

 

which monthly statements
shall include an income statement, balance sheet and cash flow statement.  The validity and accuracy of said financial
statements shall be certified by the chief executive or financial officer of
the Borrower, in a form satisfactory to the Lender.

 

As soon as available,
but not later than the second (2nd) Business Day of each calendar week,
Borrower shall deliver to the Lender a rolling 13-week cash flow forecast
beginning with such week, that shall detail all sources and uses of cash on a
weekly basis, shall report any variances from such report delivered in the
prior week and shall report a comparison of actual cash flow versus the
forecast in the prior week.

 

As soon as
available, but not later than the second (2nd) Business Day after the end of every
calendar quarter, Borrower shall deliver to the Lender an updated Schedule 10.1
setting forth the identified material accounting weaknesses of the Borrower and
the Parent, including necessary steps to correct such issues, the timeframe to
correct such issues and the Person responsible for each corrective step to
correct such issues indicating the current status of the items listed thereon.

 

As soon as
available, but not later than November 30 of each year, Borrower shall
deliver to the Lender a business plan and projected annual budget for the
following fiscal year, in each case in form and substance satisfactory to the
Lender.

 

Borrower shall
also promptly provide the Lender with such other information, financial or
otherwise, concerning the Borrower or Parent, as the Lender may reasonably
request from time to time.

 

The Lender shall
make any and all audits and investigations which it deems reasonably necessary
in connection with the Collateral.  For
the purposes of this Agreement, the Lender shall have free and ready access at
all times during normal business hours, upon reasonable advance oral or written
notice (unless in the Lender’s reasonable judgment a rapid deterioration or
loss to any Collateral is threatened, in which case no notice shall be given
and access shall not be limited to normal business hours), to the books of
account, records, papers and documents of Borrower.  Without limiting the generality of the
foregoing, the Lender shall be entitled to conduct (i) two (2) annual
field audits of the Borrower, (ii) one (1) annual equipment
appraisal, (iii) one (1) annual real estate appraisal per Real
Property or (iv) in each case, more frequent audits if deemed reasonably
necessary by the Lender under the circumstances then existing, including,
without limitation, at any time prior to the payment in full of all
Indebtedness.  The Borrower shall
reimburse the Lender for all reasonable costs and expenses incurred by Lender
for such audits and, during the continuation of an Event of Default, there
shall be no limit on the number of audits or appraisals.”

 

1.12                           Section 13.1(g) of
the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“No financing statement covering the
Collateral or any part thereof, is on file in any public office (other than
financing statements in favor of Lender and financing statements filed in
connection with Permitted Liens).  The
security interest in the 

 

6

 

Collateral granted by Borrower to Lender is
valid and enforceable and constitutes a first priority security interest
therein subject to permitted Liens.  The
security interest in the Pledged Stock granted by the Parent to Lender is valid
and enforceable and constitutes a first priority security interest therein; and”

 

1.13                           Section 14.1
of the Loan Agreement shall be amended and restated in its entirety to read as
follows:

 

“Borrower covenants to
Lender and agrees that so long as any Indebtedness shall remain unpaid:

 

(a)                              No
Distributions.  Borrower will make no
distributions or dividends of any kind, including without limitation, any loans
or advances to employees or officers, except as expressly permitted by Section 14.3(i) hereof.

 

(b)                                 Limitation
on Intercompany Debt and Intercompany Trade Payables.

 

(i)                                     All
Intercompany Debt as of March 13, 2009 is set forth on Part 1 of Schedule
14.1(b) hereto.  Upon the
incurrence of any additional Intercompany Debt, the Borrower shall promptly,
and in any event within five (5) Business Days provide an updated Schedule
14.1(b).  All Intercompany Debt shall
be (A) subordinated to all present and future Indebtedness owed by the
Borrower and/or the Guarantors to Lender in a manner satisfactory to the Lender
and (B) evidenced by a promissory note or other instrument.

 

(ii)                              All
Intercompany Trade Payables as of February 28, 2009 are set forth on Part 2
of Schedule 14.1(b) hereto. 
At no time shall the aggregate amount of outstanding Intercompany Trade
Payables exceed $350,000 (without giving any effect to offset).

 

(c)                                  Subordinated
Debt Payments.  Borrower will not
make any payments on Subordinated Debt or on Intercompany Debt, other than
non-cash payments of interest booked as capitalized interest by the Parent and
Borrower in respect of the Intercompany Debt owed to the Parent.

 

(d)                                 Senior
Debt to EBITDA.  As of the end of
each fiscal quarter set forth below, the Borrower shall maintain a ratio of
Senior Debt to trailing twelve (12) month EBITDA of not greater than the ratio
set forth below across from such period:

 

	
  Period

  	
   

  	
  Maximum
  Ratio

  
	
   

  	
   

  	
   

  
	
  fiscal quarter ended March 31, 2009

  	
   

  	
  3.0 to 1.0

  
	
   

  	
   

  	
   

  
	
  fiscal quarter ended June 30, 2009

  	
   

  	
  3.9 to 1.0

  
	
   

  	
   

  	
   

  
	
  fiscal quarter ended September 30,
  2009 and each fiscal quarter thereafter

  	
   

  	
  3.0 to 1.0

  

 

7

 

(e)                                    Cash
Flow Coverage.  As of the end of each
fiscal quarter set forth below, the Borrower shall maintain a Cash Flow
Coverage of not less than the ratio set forth below across from such period:

 

	
  Period

  	
   

  	
  Minimum
  Ratio

  
	
   

  	
   

  	
   

  
	
  fiscal quarter ended March 31, 2009

  	
   

  	
  1.25 to 1.0

  
	
   

  	
   

  	
   

  
	
  fiscal quarter ended June 30, 2009

  	
   

  	
  1.05 to 1.0

  
	
   

  	
   

  	
   

  
	
  fiscal quarter ended September 30,
  2009 and each fiscal quarter thereafter

  	
   

  	
  1.25 to 1.0

  

 

(f)                                Minimum
EBITDA.  As of the end of each
calendar month set forth below, the Borrower shall maintain a minimum
cumulative EBITDA commencing January 1 of each calendar year and ending on
the last day of such calendar month of not less than the amount set forth below
across from such month in any such calendar year.

 

	
  Period

  	
   

  	
  Minimum EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January

  	
   

  	
  $

  	
  1,046,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  February

  	
   

  	
  $

  	
  1,838,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March

  	
   

  	
  $

  	
  2,571,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  April

  	
   

  	
  $

  	
  2,340,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  May

  	
   

  	
  $

  	
  3,312,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June

  	
   

  	
  $

  	
  4,099,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  July

  	
   

  	
  $

  	
  4,940,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  August

  	
   

  	
  $

  	
  5,878,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September

  	
   

  	
  $

  	
  6,982,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  October

  	
   

  	
  $

  	
  8,044,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  November

  	
   

  	
  $

  	
  8,835,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December

  	
   

  	
  $

  	
  9,919,000

  	
   

  

 

(g)                                 [Intentionally
deleted.]

 

(h)                                 Capital
Expenditure.  Borrower shall not make
any Capital Expenditures, except with respect to (i) the Hofler Agreement,
(ii) those Capital Expenditures set forth on Schedule 14.1(h) hereto
and (iii) those made with equity contributions from the Parent.

 

8

 

The following definitions shall
have the following meanings, including for purposes of the foregoing financial
covenants:

 

“Affiliate” of any Person shall mean (a) any
other Person which, directly or indirectly, controls or is controlled by or is
under common control with such Person (b) any officer or director of such
Person, and (c) with respect to the Lender, any entity administered or
managed by the Lender, or an Affiliate or investment advisor thereof and which
is engaged in making, purchasing, holding or otherwise investing in commercial
loans.  A Person shall be deemed to be “controlled
by” any other Person if such Person possesses, directly or indirectly, power to
direct or cause the direction of the management and policies of such Person
whether by contract, ownership of voting securities, membership interests or
otherwise.  The term “Affiliate” shall
include, without limitation, the Borrower’s parent company.

 

“Capital Expenditures” shall mean all
expenditures (including capitalized lease obligations) which, in accordance
with GAAP, would be required to be capitalized and shown on the consolidated
balance sheet of the Borrower, but excluding expenditures made in connection
with the replacement, substitution or restoration of assets to the extent
financed (i) from insurance proceeds (or other similar recoveries) paid on
account of the loss of or damage to the assets being replaced or restored or (ii) with
awards of compensation arising from the taking by eminent domain or
condemnation of the assets being replaced.

 

“Cash Flow Coverage” shall mean for
any fiscal quarter (i) during calendar year 2009, the product of (A) cumulative
EBITDA on a year to date basis as of the end of such fiscal quarter over
(B) all scheduled payments of principal and interest on a year to date
basis (excluding non-cash capitalized interest) as of the end of such fiscal
quarter and (ii) during calendar year 2010 and thereafter, the product of
trailing twelve (12) month EBITDA as of the end of such fiscal quarter over
all scheduled payments of principal and interest on a trailing twelve (12)
month basis (excluding non-cash capitalized interest) as of the end of such
fiscal quarter; provided, however, that the paydown of
principal of the Revolving Loan in connection with the Second Omnibus
Amendment, dated as of March 13, 2009, shall not be counted for purposes
of clauses (i)(B) or (ii)(B) above.

 

“Debt” shall mean, as to any Person,
without duplication, (a) all indebtedness of such Person; (b) all
borrowed money of such Person (including principal, interest, fees and
charges), whether or not evidenced by bonds, debentures, notes or similar
instruments; (c) all obligations to pay the deferred purchase price of
property or services; (d) all obligations, contingent or otherwise, with
respect to the maximum face amount of all letters of credit (whether or not
drawn), bankers’ acceptances and similar obligations issued for the account of
such Person, and all unpaid drawings in respect of such letters of credit,
bankers’ acceptances and similar obligations; (e) all indebtedness secured
by any lien on any property owned by such Person, whether or not such
indebtedness has been assumed by such Person (provided, however, if such Person
has not assumed or otherwise become liable in respect of such indebtedness,
such indebtedness shall be deemed to be in an amount equal to the fair market
value of the property subject to such 

 

9

 

lien at the time of determination); (f) the aggregate amount of
all capitalized lease obligations of such Person; (g) all contingent
liabilities of such Person, whether or not reflected on its balance sheet; (h) all
hedging obligations of such Person; (i) all Debt of any partnership of
which such Person is a general partner; and (j) all monetary obligations
of such Person under (i) a so-called synthetic, off-balance sheet or tax
retention lease, or (ii) an agreement for the use or possession of
property creating obligations that do not appear on the balance sheet of such
Person but which, upon the insolvency or bankruptcy of such Person, would be
characterized as the indebtedness of such Person (without regard to accounting
treatment).  Notwithstanding the
foregoing, Debt shall not include trade payables and accrued expenses incurred
by such Person in accordance with customary practices and in the ordinary course
of business of such Person.

 

“Depreciation” shall mean the total
amounts added to depreciation, amortization, obsolescence, valuation and other
proper reserves, as reflected on the Borrower’s financial statements and
determined in accordance with GAAP.

 

“EBITDA” shall mean, for any period, (a) the
sum for such period of:  (i) Net
Income, plus (ii) Interest Charges, plus (iii) federal
and state income taxes (including the Illinois replacement tax), plus (iv) Depreciation
and amortization expense, plus (v) non-cash management compensation
expense, plus (vi) all other non-cash charges, minus (b) the
sum for such period of (i) Unfinanced Capital Expenditures and (ii) income
or loss attributable to equity in any Affiliate or Subsidiary, in each case to
the extent included in determining Net Income for such period.

 

“Interest Charges” shall mean, for any
period, the sum of:  (a) all
interest, charges and related expenses payable with respect to that fiscal
period to a lender in connection with borrowed money or the deferred purchase
price of assets that are treated as interest in accordance with GAAP, plus
(b) the portion of capitalized lease obligations with respect to that
fiscal period that should be treated as interest in accordance with GAAP, plus
(c) all charges paid or payable (without duplication) during that period
with respect to any hedging agreements.

 

“Net Income” shall mean, with respect
to the Borrower for any period, the net income (or loss) of the Borrower for
such period as determined in accordance with GAAP, excluding any
extraordinary gains and any gains from discontinued operations.

 

“Senior Debt” shall mean all Debt of
the Borrower excluding Subordinated Debt.

 

“Unfinanced Capital Expenditures”
shall mean all Capital Expenditures that are financed solely from working
capital of the Borrower and are not otherwise financed in whole or in part by
any third party; notwithstanding the generality of the foregoing, for
clarification, “Unfinanced Capital Expenditures” shall not include any
Capital Expenditures financed directly by the Parent or with the proceeds of
Intercompany Debt owed to the Parent or other equity contributions from the
Parent.”

 

10

 

The financial covenants set forth hereinabove
shall be computed on a consolidated basis in accordance with GAAP.”

 

1.14                           Section 14.2
of the Loan Agreement shall be amended by adding the following as a new clause
(aa) thereto:

 

“(aa)  The Borrower shall continue to retain the
High Ridge Partners or another consultant reasonably acceptable to the Lender.”

 

1.15                           Section 14
of the Loan Agreement shall be amended by adding the following as a new Section 14.4:

 

“The Borrower
shall pay to the Lender an extension fee, which shall be fully earned on March 13,
2009, on the dates set forth below in the amount set forth from below across
from such date:

 

	
  Due Date

  	
   

  	
  Installment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  April 30,
  2009

  	
   

  	
  $

  	
  5,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  May 31,
  2009

  	
   

  	
  $

  	
  5,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30,
  2009

  	
   

  	
  $

  	
  5,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  July 31,
  2009

  	
   

  	
  $

  	
  5,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  August 31,
  2009

  	
   

  	
  $

  	
  20,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  20,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  October 31,
  2009

  	
   

  	
  $

  	
  20,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  November 30,
  2009

  	
   

  	
  $

  	
  20,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  20,000

  	
  ”

  

 

1.16                           Exhibit A
to the Loan Agreement is hereby deleted in its entirety.

 

1.17                           Schedule
14.1(b) to this Amendment shall be added to the Loan Agreement as Schedule
14.1(b) thereto.

 

1.18                           Schedule
14.1(h) to this Amendment shall be added to the Loan Agreement as Schedule
14.1(h) thereto.

 

SECTION 2.                                AMENDMENTS TO NOTES.

 

2.1                                 Notwithstanding
any other provision of any of the Notes to the contrary, the Borrower may not
select to have the Notes bear interest at a fixed rate.

 

2.2                                 Notwithstanding
any other provision of any of the Notes to the contrary, the Notes shall bear
interest at a rate equal to the greater of (A) LIBOR plus five percent
(5%) and (ii) six percent (6%); provided, that for the purposes of
clause (ii) above, “LIBOR” shall be defined as 

 

11

 

the rate per annum equal to the British Bankers
Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as designated by the Lender
from time to time) at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such Interest Period, for U.S. dollar
deposits in an amount comparable to the relevant Loan (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period.

 

2.3                                 Notwithstanding
any other provision of any of the Notes or the Loan Agreement to the contrary,
the Borrower shall not incur and the Lender shall not charge any prepayment
penalty.

 

2.4                                 Notwithstanding
any other provision of the Revolving Note or the Loan Agreement to the
contrary, the “Maturity Date” (as such term is defined in the Revolving Note)
shall be January 15, 2011.

 

2.5                                 Notwithstanding
any other provision of the Equipment Note or the Loan Agreement to the
contrary, the “Maturity Date” (as such term is defined in the Equipment Note)
shall be December 31, 2011.

 

2.6                                 Notwithstanding
any other provision of the Equipment Note No. 2 or the Loan Agreement to
the contrary, the “Maturity Date” (as such term is defined in the Equipment Note
No. 2) shall be December 31, 2011

 

SECTION 3.                                AMENDMENTS TO
SUBSIDIARY NOTE.

 

3.1                                 Notwithstanding
any other provision of the Subsidiary Note to the contrary, the Subsidiary Note
shall bear interest at a rate equal to the greater of (A) LIBOR plus five
percent (5%) and (ii) six percent (6%); provided, that for the
purposes of clause (ii) above, “LIBOR” shall be defined as the rate per
annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”),
as published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Lender from time to time) at
approximately 11:00 a.m., London time, two (2) Business Days prior to
the commencement of such Interest Period, for U.S. dollar deposits in an amount
comparable to the relevant Loan (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period.

 

3.2                                 Notwithstanding
any other provision of the Subsidiary Note or the Loan Agreement to the
contrary, the “Maturity Date” (as such term is defined in the Subsidiary Note)
shall be December 31, 2011.

 

SECTION 4.                                WAIVER.  The Lender hereby waives the Borrower’s
violation of the financial covenants set forth in Sections 14.1(f) solely
for the period ending December 31, 2008 and only to the extent that the
Borrower had a minimum EBITDA of $9,500,000 for the twelve (12) months ending
on such date; provided, however, such waiver is limited solely to
such specific covenant violations for such periods and shall not waive, suspend
or effect any other default by Borrower under the Loan Agreement, and the
Lender expressly reserves all of its rights with respect to any such other
default(s).

 

12

 

SECTION 5.                                CONDITIONS
PRECEDENT.  This Amendment shall become
effective on the date (the “Amendment Effective Date”) when the Lender
shall have received the following:

 

5.1                                 Amendment.  This Amendment, duly executed by the parties
hereto.

 

5.2                                 Resolutions.  A copy of the resolutions, in form and
substance satisfactory to the Lender, of the Borrower and each Guarantor, as
applicable, authorizing (i) the execution, delivery and performance of
this Amendment, the Subsidiary Loan Documents and the other Loan Documents to
which it is a party and (ii) the transactions contemplated under this
Amendment, the Subsidiary Loan Documents and the other Loan Documents.

 

5.3                                 Organizational
Documents.  A certificate of the
secretary or assistant secretary of the Borrower and each Guarantor certifying
that all of the organizational documents of the Borrower and each Guarantor
remain in full force and effect on the Amendment Effective Date in form and
substance as previously delivered to the Lender on January 15, 2009,
without modification or supplement of any kind.

 

5.4                                 Incumbency.  A certificate of the secretary or assistant
secretary of the Borrower and each Guarantor, certifying the names and true
signatures of the officers authorized to sign this Amendment and the
Reaffirmation.

 

5.5                                 Paydown.  Payment of a paydown of the principal of the
Revolving Loan in an amount equal to $1,500,000, in immediately available
funds, which shall not be available for re-borrowing; provided, that
$500,000 of the paydown shall come as proceeds of new Intercompany Debt from
Parent, on terms and conditions reasonably satisfactory to the Lender.

 

5.6                                 Reaffirmation.  A Reaffirmation, substantially in the form
attached hereto as Exhibit A hereto, executed by the Parent, 1309
and 5100.

 

SECTION 6.                                REPRESENTATIONS AND
WARRANTIES.  To induce the Lender to
enter into this Amendment, the Borrower and each Guarantor hereby represents
and warrants to the Lender as follows:

 

6.1                                 Due
Authorization, Non-Contravention, etc. 
The execution, delivery and performance by the Borrower and each
Guarantor of this Amendment are within such party’s corporate or company
powers, as applicable, have been duly authorized by all necessary corporate or
company action, as applicable, and do not

 

(a)                                  contravene
such party’s organizational documents;

 

(b)                                 contravene
any contractual restriction, law or governmental regulation or court decree or
order binding on or affecting such party; or

 

(c)                                  result
in, or require the creation or imposition of, any Lien on any of the Borrower’s
or any Guarantors’ properties, other than the Permitted Liens.

 

13

 

6.2                                 Government
Approval, Regulation, etc.  No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or other Person is required for
the due execution, delivery or performance by the Borrower of this Amendment.

 

6.3                                 Validity,
etc.  This Amendment constitutes the
legal, valid and binding obligation of the Borrower and each Guarantor
enforceable in accordance with its terms.

 

6.4                                 Event
of Default.  No Event of Default
shall occur as a result of, or after giving effect to, this Amendment.

 

6.5                                 Acknowledgements.  The Borrower and each of the Guarantors
acknowledge that the amount of principal owing with respect to the Indebtedness
arising under the Loan Agreement, the Subsidiary Loan Documents or the other
Loan Documents as of date of this Agreement, after giving effect to the
$1,500,000 paydown of principal of the Revolving Loan pursuant to Section 5.7
hereof, is $21,961,942.21.  Notwithstanding anything to the contrary in
the Notes, the Subsidiary Notes, the Loan Agreement, the Loan Documents or the
Subsidiary Loan Documents, the monthly required principal payment owing under
each of the Notes and the Subsidiary Notes shall be as follows:

 

	
  Note

  	
   

  	
  Required Monthly Principal Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Revolving Note

  	
   

  	
  $

  	
  113,637.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Term Note

  	
   

  	
  $

  	
  131,655.55

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Equipment Note

  	
   

  	
  $

  	
  183,333.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Equipment Note No. 2

  	
   

  	
  $

  	
  147,958.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Subsidiary Note

  	
   

  	
  $

  	
  34,583.22

  	
   

  

 

Such monthly principal payments will be made on the
last Business Day of each month.  Any
principal amount outstanding on the Maturity Date of any Note shall be due and
payable on such Maturity Date.

 

Without in any manner limiting the generality of the
release set forth in Section 7.4 hereof, the Borrower and the
Guarantors hereby represent, warrant, covenant and agree that there exist no
offsets, counterclaims or defenses to payment or performance of the obligations
set forth in the Loan Agreement, the Subsidiary Loan Documents or the other
Loan Documents and, in consideration hereof, expressly waive any and all such
offsets, counterclaims and defenses arising out of any alleged acts,
transactions or omissions on the part of the Lender arising (or otherwise
relating to the period) on or prior to the Amendment Effective Date.

 

SECTION 7.                                MISCELLANEOUS.

 

7.1                                 Continuing
Effectiveness, etc.  This Amendment
shall be deemed to be an amendment to the Loan Agreement, the Subsidiary Loan
Documents and the other Loan Documents, each of which shall remain in full
force and effect and is hereby ratified, approved and confirmed in each and
every respect.  After the effectiveness
of this Amendment in 

 

14

 

accordance with its terms, all references to the Loan
Agreement, the Subsidiary Loan Documents and each Loan Document in the Loan
Documents or the Subsidiary Loan Documents or in any other document,
instrument, agreement or writing shall be deemed to refer to the Loan Agreement
or such other Loan Document or Subsidiary Loan Document as amended hereby.

 

7.2                                 Payment
of Costs and Expenses.  The Borrower
agrees to pay on demand all expenses of the Lender (including the fees and
out-of-pocket expenses of counsel to the Lender) in connection with the
drafting, negotiation, execution, delivery and effectiveness of this Amendment.

 

7.3                                 Mayer
Brown Expenses.  Without limiting the
generality of Section 7.2, the Borrower agrees to pay, within five (5) Business
Days of receipt of an invoice, the fees and expenses of Mayer Brown LLP,
counsel to the Lender, incurred in connection with the representation of the
Lender in this matter.

 

7.4                                 General
Credit Agreement Compliance.  All
provisions of the Loan Agreement, the Subsidiary Loan Documents and the other
Loan Documents (as expressly amended in Sections 1, 2 and 3)  shall continue in full force and effect in accordance with
the provisions thereof and the Borrower and the Guarantors reaffirm all their
agreements under the Loan Agreement, the Subsidiary Loan Documents and the
other Loan Documents.  The Borrower and
the Guarantors shall comply with the provisions of their respective Loan
Documents and Subsidiary Loan Documents, including, without limitation, the
timely payment of all scheduled principal and interest payments.

 

7.5                                 Release
and Covenant Not to Sue.  In
consideration of the agreements and understandings in this Agreement, the
Borrower and each Guarantor jointly and severally, for itself and on behalf of
the Borrower’s Derivative/Successor Persons, hereby knowingly and voluntarily,
unconditionally and irrevocably, absolutely, finally and forever releases,
acquits and discharges each Lender Released Party from any Claim relating in
any manner whatsoever to any of the Loan Documents, including any transaction contemplated thereby or undertaken in
connection therewith, or otherwise to the Borrower’s or Guarantors’ credit
relationship with the Lender, which relates or may relate in any manner
whatsoever to any facts, known or unknown, in existence on or at any time prior
to the Amendment Effective Date (each a
“Borrower-Related Claim”).

 

The Borrower and each Guarantor
hereby knowingly and voluntarily, unconditionally and irrevocably, absolutely
finally and forever covenants that it shall refrain, and further shall direct
any Derivative/Successor Person to refrain, from commencing or otherwise
prosecuting any action, suit or other proceeding of any kind, nature,
character, or description, including in law or in equity, against any Lender
Released Party on account of any Borrower-Related Claim.  Each Lender Released Party shall be entitled
to enforce this covenant through specific performance.  In addition to any other liability which
shall accrue upon the breach of this covenant, the breaching party (including,
any Derivative/Successor Person of the Borrower or any Guarantor that commences
or prosecutes any such action, suit or other proceeding) shall be liable to
such Lender Released Party for all reasonable attorneys’ fees and costs
incurred by such party in the defense of any such action, suit or other
proceeding.

 

15

 

The following terms
shall have the following definitions when used in this Section 7.5:

 

“Claims” shall mean, with respect to the
Borrower and/or any Guarantor, any and all claims, counterclaims, actions,
causes of action (including, any relating in any manner to any existing
litigation or investigation), suits, obligations, controversies, defenses,
debts, liens, contracts, agreements, covenants, promises, liabilities, damages,
penalties, demands, threats, compensation, losses, costs, judgments, orders,
interest, fee, or expense (including attorneys’ fees and expenses) or other
similar items of any kind, type, nature, character or description, including,
whether in law, equity or otherwise, whether now known or unknown, whether in
contract or in tort, whether choate or inchoate, whether contingent or vested,
whether liquidated or unliquidated, whether fixed or unfixed, whether matured
or unmatured, whether suspected or unsuspected, and whether or not concealed,
sealed or hidden, of any of the Borrowers and/or which may be asserted by the
Borrower and/or any Guarantor, through the Borrower and/or any Guarantor or
otherwise on the behalf of the Borrower and/or any Guarantor (including those
which may be asserted on any derivative basis), which have existed at any time
on or prior to the date hereof.

 

“Derivative/Successor
Person” shall mean, with respect to the Borrower or any Guarantor, any
person or other entity (including any former, current, or future employee,
officer, agent, attorney, board member, shareholder, parent, subsidiary,
partnership, joint venture, other affiliate, spouse, relative, heir,
beneficiary, legal representative, creditor, successor or assign) that may
assert or may attempt to assert any Claim by or otherwise belonging to the
Borrower or any such Guarantor, through the Borrower or such Guarantor or
otherwise on behalf of the Borrower or such Guarantor (including on any derivative
basis).

 

“Lender Released
Parties” shall mean the Lender and each of its former, current, and future
subsidiaries, parents, partnerships, joint ventures, other affiliates,
officers, directors, employees, attorneys, agents (including consultants),
assigns, heirs, executors, administrators, predecessors, successors and
assigns.

 

7.6                                 Severability.  Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this
Amendment or affecting the validity or enforceability of such provision in any
other jurisdiction.

 

7.7                                 Headings.  The various headings of this Amendment are
inserted for convenience only and shall not affect the meaning or
interpretation of this Amendment or any provisions hereof.

 

7.8                                 Execution
in Counterparts.  This Amendment may
be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one
and the same agreement.

 

16

 

7.9                                 Governing
Law.  THIS AMENDMENT SHALL BE DEEMED
TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
ILLINOIS (INCLUDING 735 ILCS SECTION 105/5-5), BUT OTHERWISE WITHOUT
GIVING EFFECT TO ANY OF SUCH STATE’S CONFLICTS-OF-LAW PROVISIONS.

 

7.10                           Successors
and Assigns.  This Amendment shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

 

17

 

IN WITNESS WHEREOF, the
undersigned have duly executed this Omnibus Amendment Agreement as of the date
first set forth above.

 

	
   

  	
  BRAD FOOTE GEAR WORKS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/  Ralph Placzek

  
	
   

  	
  Name:

  	
    Ralph
  Placzek

  
	
   

  	
  Title:

  	
     VP-Finance
  and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  1309 SOUTH CICERO
  AVENUE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
   Ralph Placzek

  
	
   

  	
  Name:

  	
    Ralph
  Placzek

  
	
   

  	
  Title:

  	
     Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  5100 NEVILLE ROAD, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/  Ralph Placzek

  
	
   

  	
  Name:

  	
    Ralph
  Placzek

  
	
   

  	
  Title:

  	
     Authorized
  Signatory

  
					

 

Omnibus Amendment Signature Page

 

S-1

 

	
   

  	
  BANK OF AMERICA, N.A.,
  as Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/  Sandra H. Bennett

  
	
   

  	
  Name:

  	
    Sandra
  H. Bennett

  
	
   

  	
  Title:

  	
     Senior
  Vice President

  
					

 

Omnibus Amendment Signature Page

 

S-2

 

SCHEDULE 14.1(b)

INTERCOMPANY DEBT

AND

INTERCOMPANY TRADE PAYABLES

 

 

Brad
Foote Gear Works

 

 

	
  Intercompany Debt - Part 1

  	
   

  	
  As of 3/13/2009

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Amounts advanced by Broadwind Energy for capital
  equipment purchases

  	
   

  	
  30,000,000

  	
   

  
	
  Amounts advanced by Broadwind Energy for working
  capital needs and for expenses paid on behalf of Broadwind

  	
   

  	
  1,833,183

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Intercompany Note with Broadwind Energy

  	
   

  	
  31,833,183

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  New Intercompany Note with Broadwind Energy

  	
   

  	
  500,000

  	
   

  

 

	
  Intercompany Trade
  Payables/Receivables - Part 2

  	
   

  	
  As of 2/28/2009

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Due To Broadwind Energy-Net payments made on behalf
  of Broadwind Energy

  	
   

  	
  (150,520

  	
  )

  
	
  Due Fr EMS

  	
   

  	
  30,490

  	
   

  
	
  Due To Badger Transport

  	
   

  	
  (15,750

  	
  )

  
	
  Due To RBA

  	
   

  	
  (15,750

  	
  )

  
	
  Due Fr Tower Tech-Payments made on behalf of Tower
  Tech

  	
   

  	
  39,424

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Net Intercompany Trade Payables

  	
   

  	
  (112,106

  	
  )

  

 

1

 

SCHEDULE 14.1(h)

CAPITAL EXPENDITURES

 

A-1

 

Brad Foote Gear Works

Maximum
Allowable Capital Expenditures

 

	
  Description

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Koefer Model KFS250 Hob
  Sharpener

  	
   

  	
  $

  	
  118,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&M Gleason Gear
  Checker

  	
   

  	
  691,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crane G1600B 10 Ton

  	
   

  	
  47,500

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  96” Goff Shot Peener

  	
   

  	
  32,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Youji YV 800A (A) &  800A (B)

  	
   

  	
  231,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leadwell MCV-1500i

  	
   

  	
  10,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Induction Hardener Pillar
  Power Supply

  	
   

  	
  47,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ring Gear Cell - 2 Youji
  2000 VTL

  	
   

  	
  1,009,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Planet Pinion - 2 Fortune
  Lathes

  	
   

  	
  315,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Car Bottom Furnace from
  Calumet Steel

  	
   

  	
  97,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gasher Jib Crane

  	
   

  	
  5,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal Schedule Capital
  Expenditures

  	
   

  	
  $

  	
  2,602,500

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allowable Unscheduled
  Capital Expenditures

  	
   

  	
  $

  	
  397,500

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Maximum Allowable Capital
  Expenditures

  	
   

  	
  $

  	
  3,000,000

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  

 

 

EXHIBIT A

REAFFIRMATION

 

THIS REAFFIRMATION (this “Reaffirmation”)
dated as of March         , 2009,
is made by each of the undersigned (each, an “Undersigned”), in favor of
the Lender (as defined below).

 

R  E  C  I
T  A  L  S:

 

1.               Brad Foote Gear Works, Inc. (the “Borrower”)
and Bank of America, N.A., as lender (in such capacity, the “Lender”)
are parties to that certain Loan and Security Agreement, dated as of January 17,
1997 (as amended to date and in effect on the date hereof, the “Existing
Credit Agreement”).

 

2.               The Borrower and the Lender have agreed to amend the
Existing Credit Agreement pursuant to that certain Second Omnibus Amendment
Agreement (the “Omnibus Amendment Agreement”) of even date herewith (the
Existing Credit Agreement, as amended by the Omnibus Amendment Agreement, and
as such may be further amended, modified, restated or supplemented from time to
time, the “Credit Agreement”).

 

3.               Each of the Undersigned is party to one or more Loan
Documents (collectively, the “Reaffirmed Documents”) relating to the
Credit Agreement.

 

4.               It is a condition precedent to the occurrence of the
Amendment Effective Date (as defined in the Omnibus Amendment Agreement) that
each of the Undersigned execute and deliver this Reaffirmation.

 

NOW THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and in order to induce the Lender to enter into the Omnibus Amendment
Agreement, each Undersigned agrees, for the benefit of the Lender, as follows:

 

ARTICLE I.

DEFINITIONS

 

Capitalized terms used herein that are
defined in the Credit Agreement shall have the same meanings when used herein
unless otherwise defined herein.

 

ARTICLE II.

REAFFIRMATION

 

Each Reaffirmed Document remains in full
force and effect and is hereby ratified and confirmed, and from and after the
date hereof, each reference that appears in any of the Reaffirmed Documents to
the Existing Credit Agreement shall be deemed to be a reference to the Credit
Agreement.

 

A-1

 

ARTICLE III.

MISCELLANEOUS PROVISIONS

 

SECTION 3.1. Loan Document. This
Reaffirmation is a Loan Document executed pursuant to the Credit Agreement and
shall (unless otherwise expressly indicated herein) be construed, administered
and applied in accordance with the terms and provisions thereof.

 

SECTION 3.2. Severability. Any
provision of this Reaffirmation which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Reaffirmation or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

SECTION 3.3. Headings. The
various headings of this reaffirmation are inserted for convenience only and
shall not affect the meaning or interpretation of this Amendment or any
provisions hereof.

 

SECTION 3.4. Execution in
Counterparts. This Reaffirmation may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all
of which shall constitute together but one and the same agreement.

 

SECTION 3.5 Governing Law. THIS
REAFFIRMATION SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF ILLINOIS (INCLUDING 735 ILCS SECTION 105/5-5),
BUT OTHERWISE WITHOUT GIVING EFFECT TO ANY OF SUCH STATE’S CONFLICTS-OF-LAW
PROVISIONS.

 

SECTION 3.6 Successors and Assigns.
This Reaffirmation shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and assigns.

 

[Remainder of page intentionally left blank]

 

A-2

 

IN WITNESS WHEREOF, the parties hereto, by
their officers duly authorized, have caused this Reaffirmation to be duly
executed and delivered as of the date first above written.

 

	
   

  	
  BROADWIND ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  1309 SOUTH CICERO AVENUE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  5100 NEVILLE ROAD, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]