Document:

Exhibit 10.88

 

AGREEMENT GOVERNING EXTENSIONS OF CREDIT

 

This Agreement, dated March 13, 2009, is
between Investors Community Bank (the “Bank”) and Tower Tech Systems Inc. (the
“Borrower”).

 

RECITALS

 

A.            Bank and Borrower
are parties to certain extensions of credit, which extensions of credit are
evidenced by loan documentation existing on the date hereof and may be
evidenced by additional loan documentation executed by one or both parties from
time to time; and

 

B.            Bank and Borrower
desire to
enter
into this Agreement relating to all such loan documentation.

 

AGREEMENT

 

1.             Collateral.

 

i.                 Debt Documents;
Obligations.
Bank and Borrower have executed and anticipate that from time to time they may execute loan
agreements, notes, guaranties and other documentation evidencing a debt or
obligation of Borrower to Bank from time to time. All documents at any time
executed by Borrower and evidencing a debt or obligation of Borrower to Bank
are referred to herein as “Debt Documents.” All obligations of Borrower to Bank
under Debt Documents and all other obligations of Borrower to Bank from time to
time are referred to herein as “Obligations.” Obligations include but are  not limited to
obligations to repay loans, debts occurring by reason of overdrafts of checking
accounts, obligations to take action such as purchasing insurance or
maintaining property, and all other obligations of Borrower to Bank, including
those obligations that exist on the date hereof and those obligations that may
be incurred on or after the date heretof.

 

The following existing
documents are Debt Documents:

 

Commercial Promissory Note and Commercial Loan Agreement dated 3/21/2008, Irrevocable Standby
Letter of Credit dated 8/31/2007, Guaranty of R. B. A. Inc. dated 3/21/2008, Guaranty of Tower Tech Holdings Inc. dated
3/21/2008

 

ii.                Security Documents;
Collateral. Borrower has granted to Bank certain collateral, and Bank and Borrower
anticipate that Borrower may grant to Bank additional collateral from time to
time. All documents at any time granting to Bank a lien or security interest in
any property are referred to herein as “Security Documents.” A document may be both
a Debt Document and a Security Document. All of Borrower’s property in which
Bank has a lien
or security interest on the date  hereof, and all property in which Bank may
have a lien or security interest in the future, including but not limited to
real estate and personal property, is referred to herein as “Collateral.”

 

The following
existing documents are Security Documents:

 

Commercial Security
Agreement dated 10/4/2007

 

iii.               Cross
Collateralization.
All Collateral shall at all times be security for all Obligations. If Borrower
grants Bank a lien or security interest at any time, such lien or security interest
shall continue, and the Borrower’s property shall continue to be collateral for
all Obligations, until all Obligations are paid in full and Bank and Borrower
enter into a termination or release of the applicable Security Document.

 

2.             Cross Default. Any time there is a
default under any Debt Document, any Security Document or this Agreement, such
default shall be a default under all Debt Documents, all Security Documents and
this Agreement.

 

3.             Covenants and
Agreements.
In addition to all agreements contained in the Debt Documents and Security Documents,
Borrower agrees to comply with all of the following:

 

i.                  Minimum Debt service
coverage ratio of 1,25:1 tested quarterly using trailing 12 month financials. 

 

The coverage ratio is defined as:

 

	
   

  	
  net profit + depreciation + interest

  	
   

  
	
   

  	
  principal payments and interest payments

  	
   

  

 

ii.               Minimum Tangible Net
Worth (excluding goodwill and other intangible assets) covenant to be
tested quarterly as follows:

 

	
  3/31/2009

  	
   

  	
  $

  	
  1.4 million

  	
   

  
	
  6/30/2009

  	
   

  	
  $

  	
  1.6 million

  	
   

  
	
  9/30/2009

  	
   

  	
  $

  	
  1.8 million

  	
   

  
	
  12/31/2009

  	
   

  	
  $

  	
  2.0 million

  	
   

  

 

iii.           Primary Depository account(s) to be
maintained at Investors Community Bank.

 

iv.          Existing monthly borrowing base agreement to
remain the same.

 

v.             No additional loans or  leases to be entered
into without Investors Community Bank’s prior approval.

 

vi.          Audited financial statements by Grant Thornton
to be provided to Investors Community Bank by 3/31/2009. Financial performance
of Broadwind Energy, Inc. and the two subsidiaries we finance (Tower Tech
Systems, Inc., and R. B. A., Inc.) must be “materially close” (minimum fye  2008 profitability
for Tower Tech Systems, Inc. of $3,600,000: minimum fye 2008 profitability for R. B. A., Inc.
of $150,000: (excluding the  one-time impairment charge) and a maximum fye
2008 loss for Broadwind Energy, Inc. of $27,000,000). These
profitability numbers are based on 80% of the profitability / (loss) as
reflected in the consolidated financial statements provided Investors Community
Bank. The covenant violation applies if any, or all, of the above performance
measurements are not attained.

 

1

 

Annually,
Borrower will provide to Lender Borrower’s financial statements, tax returns,
or those prepared by independent accountants within 90 days after the close of
each fiscal year. Any annual financial statements that Borrower provides will
be:

 

o reviewed
statements. o compiled statements.

 

x Borrower will
provide Lender with interim financial reports on a quarterly basis, and within
45 days after the close of this business period. Interim financial statements
will be:

 

o audited  o reviewed  x compiled statements.

 

4.             This Agreement to
Control.
The Bank and Borrower intend for this Agreement to apply to all transactions
between them, and this Agreement shall continue in effect until the Borrower
and Bank enter into a termination agreement. Even if a particular Security
Document ever describes certain Obligations without describing all Obligations,
that Security Document shall secure all Obligations.

 

5.             Effect of Agreement.
This Agreement applies to all extensions of credit between Bank and Borrower.
This Agreement is not an agreement to extend credit. Bank shall not be
obligated under this Agreement to loan money to Borrower or otherwise extend
credit to Borrower.

 

6.             Participants;
Assigns; Guarantors; Disclosure. The Borrower agrees
that the Bank may, at its option, sell to one or more other financial institutions or other parties interests in the Obligations. Bank may, at Bank’s sole option, disclose to the purchaser of any such
interest and to any guarantor of all or any part of the Obligations financial
and other information concerning the Borrower.

 

7.             Amendment. This Agreement may
be amended only by a writing signed by the party to be bound thereby.

 

8.             Governing Law. This Agreement
shall be governed by, and construed in accordance with, the laws of the State
of Wisconsin without giving effect to applicable principles of conflict of laws
to the extent that the application of the laws of another jurisdiction would be
required thereby.

 

9.             Counterparts. This Agreement may
be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

10.           Severability. In case any provision in this Agreement
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

 

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

 

 

	
  BORROWER:

  	
   

  	
   

  
	
  Tower
  Tech Systems Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  a
  Wisconsin Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Steven A. Huntington

  	
   

  	
   

  
	
  Steven
  A. Huntington

  	
   

  	
   

  
	
  Title:
  C.F.O.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BANK:

  	
   

  	
   

  
	
  INVESTORS
  COMMUNITY BANK

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert Boerger

  	
   

  	
   

  
	
  Robert Boerger

  	
   

  	
   

  
	
  Title:
  Sr. Commercial LenderExhibit 10.89

 

	
  BORROWER
  NAME AND ADDRESS

  	
   

  	
  LENDER
  NAME AND ADDRESS

  	
   

  	
  LOAN
  DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tower
  Tech Systems Inc

  	
   

  	
  Investors
  Community Bank

  	
   

  	
   

  	
   

  
	
  101
  S. l6th St, P O. Box 1957

  	
   

  	
  860
  N. Rapids Road

  	
   

  	
  Number

  	
  44938102

  	
  mat

  
	
  Manitowoc, WI 54221-1957

  	
   

  	
  P
  O. Box 700

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Manitowoc,
  Wl 54221-0700

  	
   

  	
  Amount $

  	
  5,500,000.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date

  	
  03-21-2008

  

 

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

 

COMMERCIAL DEBT MODIFICATION AGREEMENT

 

DATE AND PARTIES. The date of this Debt Modification Agreement (Modification) is 03-13-2009

 

DEFINITIONS. As used in this Modification, the terms have
the following meanings.

 

Pronouns.
The pronouns “I,” “me,” and “my” refer to each Borrower signing this Modification, individually and together with their heirs,
executors, administrators, successors,
and assigns “You” and “your” refer to the Lender, with its participants or syndicators, successors and assigns, or any person or entity that acquires an interest in this
Modification or Prior Obligation.

 

Prior Obligation. “Prior Obligation” refers to my
previous agreement governing
my
promise to pay you money, including any loan agreement, note, or document that
evidences my indebtedness, and any extensions, renewals, modifications, and substitutions.

 

BACKGROUND. You and I have entered into a Prior
Obligation which is evidenced by Commercial Promissory
Note and Commercial Loan Agreement dated 03-21-2008 x  in the original
principal amount of / o  with a maximum possible principal amount of $ 5,500,000.00. o  payable on demand. / o  payable
on demand but if no demand is made, by the
maturity date of                               
/ x  with a maturity date of
04-22-2009.

 

As of the date of this Modification. the x  amount
remaining due is / o  current amount outstanding on the Prior Obligation is $ 5,247,000.00 principal (Principal)
plus $ 9,777.50 accrued interest, for a total of $ 5,256,777.50.

 

MODIFICATION. For value received, you and I agree to modify the Prior Obligation as follows

 

x    INTEREST RATE MODIFICATION.

 

x     INTEREST
RATE:

 

The
interest rate shall change
from a variable rate of prime + 0.00% with a floor rate of 5.00% to a
variable rate of prime +.50% with a floor rate of 6.00 effective 3/13/2009 and shall remain in effect until maturity.

 

Maximum
Interest Amount. Any amount
assessed or collected as interest will be limited to the maximum lawful amount of interest allowed by state or
federal law. Amounts collected in excess of the maximum lawful amount will  be applied first to the unpaid principal balance. Any remainder will be refunded to me

o      Post-Maturity/Default
Interest
Rate.

 

 

	
   

  	
  o   Compounding. This
  Modification provides for the compounding of interest.

  
	
  o

  	
  PAYMENT
  MODIFICATION.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  o

  	
  DRAW
  PERIOD MODIFICATION.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  o

  	
  FEES
  AND CHARGES MODIFICATION.

  

 

 

ADDITIONAL TERMS.

 

The maturity date shall change from 4/22/2009
to 3/13/2010

 

The Agreement Governing Extensions of Credit dated 3/21/2008 will be replaced with the Agreement Governing Extensions
of Credit dated 3/13/2009.

 

CONTINUATION OF
TERMS. Except as specifically
amended in this Modification, all terms of the Prior
Obligation remain in effect.

 

INTERPRETATION. whenever used, the singular includes  the plural and the plural includes the singular
The Section
headings are for convenience only and are not to be used to interpret or define the terms of this Modification.

 

VT only o NOTICE TO BORROWER: THIS IS
A DEMAND NOTE AND SO MAY BE COLLECTED BY THE LENDER AT ANY TIME. A NEW
NOTE MUTUALLY AGREED UPON AND SUBSEQUENTLY ISSUED MAY CARRY A HIGHER OR
LOWER RATE OF INTEREST.

 

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

 

SIGNATURES. By signing under seal, Borrower agrees to the terms contained in this Note. Borrower also acknowledges receipt of a copy of
this Note.

 

BORROWER:

 

	
  Tower Tech Systems Inc.

  	
   

  	
   

  
	
  Entity Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Steven A. Huntington

  	
  3/13/09

  	
  (Seal)

  	
   

  	
   

  	
   

  	
  (Seal)

  
	
  Signature

  	
  Steven
  A. Huntington,

  	
  Date

  	
   

  	
   

  	
  Signature

  	
  Date

  	
   

  
	
   

  	
  VP
  Finance and Treasurer

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Seal)

  	
   

  	
   

  	
   

  	
  (Seal)

  
	
  Signature

  	
   

  	
  Date

  	
   

  	
   

  	
  Signature

  	
  Date

  	
   

  
										

 

LENDER:

 

	
  Investors Community Bank

  	
   

  	
   

  
	
  Entity Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Robert R. Boerger

  	
  3/13/09

  	
  (Seal)

  	
   

  	
   

  	
   

  	
  (Seal)

  
	
  Signature

  	
  Robert R.
  Boerger

  	
  Date

  	
   

  	
   

  	
  Signature

  	
  Date

  	
   

  
	
   

  	
  Senior
  Commercial Lender

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMMERCIAL
  DEBT MODIFICATION AGREEMENT

  	
   

  	
  NOT
  TO BE USED FOR LOANS SUBJECT TO CONSUMER LENDING LAWS

  
									

 

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

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]