Document:

Exhibit 10.35

 

AGREEMENT GOVERNING EXTENSIONS OF CREDIT

 

This Agreement, dated October 4, 2007,
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 hereof.

 

The following existing documents are Debt
Documents:

 

Commercial Promissory Note and Commercial
Loan Agreement dated 10/4/2007, Guaranty of R. B. A. Inc dated 10/4/2007,
Guaranty of Tower Tech Holdings Inc. dated 10/4/2007.

 

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, Commercial Security Agreement dated 10/4/2007 pledged by R. B. A.
Inc. and Commercial Security Agreement dated 10/4/2007 pledged by Tower Tech
Holdings Inc.

 

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.                                       Cross
Collateralization and Cross Default with Obligations of R. B. A. Inc.  Borrower has guarantied the obligations of
R. B. A. Inc.  Such guaranty is a
Debt Document secured by all Security Documents.  Any default by R. B. A. Inc. under any
agreements with Bank shall be a default under all of the Borrower’s Debt
Documents and Security Documents and under this Agreement.

 

4.                                       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 to Tangible Net Worth of
  consolidated companies (R. B. A. Inc. and Tower Tech Holdings LLC) 1 to 1 or
  greater based on Year end financial statements.

  
	
  ii.

  	
   

  	
  Minimum Debt service coverage ratio of 1.25
  to 1 tested annually at year end.

  
	
  iii.

  	
   

  	
  Minimum Tangible Net Worth of consolidated
  companies (R. B. A. Inc. and Tower Tech Holdings LLC) of $10 Million or
  greater at year end.

  
	
  iv.

  	
   

  	
  Primary Depository account kept at
  Investors Community Bank for all companies listed above.

  
	
  v.

  	
   

  	
  No loans or leases to be entered into
  without the bank’s prior approval.

  

 

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

  
	
   

  
	
  o audited statements. o
  reviewed statements. x
  compiled statements.

  
	
   

  
	
  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.

  

 

5.                                       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.

 

1

 

6.                                       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.

 

7.                                       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.

 

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

 

9.                                       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.

 

10.                                 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.

 

11.                                 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 Lender

  

 

AGREEMENT OF GUARANTOR

 

The undersigned Guarantor has executed or may
execute one or more guaranties of the obligations of Borrower to Bank.  Each Guaranty executed by Guarantor shall
guaranty all of the Obligations described above.  Guarantor agrees to be bound by the foregoing
Agreement.  Guarantor guaranties all
Obligations described above, including Obligations that may be created in the
future if the Bank makes additional loans to the Borrower.  Bank may make additional loans and Bank may
agree to changes to the Debt Documents and Security Documents, all without
affecting the obligations of Guarantor to Bank. 
Guarantor shall be responsible for keeping informed as to the
transactions between Bank and Borrower, and Bank shall have no obligation to
provide any notices or other information to Guarantor.

 

	
  GUARANTOR:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  R. B. A. Inc.

  	
   

  	
  Tower Tech Holdings Inc.

  
	
   

  	
   

  	
   

  
	
  a Wisconsin Corporation

  	
   

  	
  a Nevada Corporation

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Steven A. Huntington

  	
   

  	
  By: 

  	
  /s/ Steven A. Huntington

  
	
  Steven A. Huntington

  	
   

  	
  Steven A. Huntington

  
	
  Title: C.F.O.

  	
   

  	
  Title: C.F.O.

  
					

 

2Exhibit 10.36

 

	
  BORROWER NAME AND ADDRESS

  	
   

  	
  LENDER
  NAME AND ADDRESS

  	
   

  	
  LOAN
  DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tower
  Tech Systems Inc.

  	
   

  	
  Investors Community Bank

  	
   

  	
   

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

  	
   

  	
  860
  N. Rapids Road

  	
   

  	
  Number

  	
  44938101
  mas

  
	
  Manitowoc,
  WI 54221-1957

  	
   

  	
  P.O. Box
  700

  	
   

  	
  Amount

  	
  $2,500,000.00

  
	
   

  	
   

  	
  Manitowoc,
  WI 54221-0700

  	
   

  	
  Date

  	
  10-04-2007

  

 

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

 

	
  COMMERCIAL
  PROMISSORY NOTE

  

 

DATE.  The date of this Promissory Note (Note) is 10-04-2007.

 

GOVERNING AGREEMENT.  This Note is further governed by
the Commercial Loan Agreement between Lender and Borrower dated 10-04-2007, as
modified, amended, or supplemented.  All
definitions of terms in the Commercial Loan Agreement apply to this Note as
well.  Upon execution of this Note,
Borrower represents that Borrower has reviewed and is in compliance with all
Loan Documents and the Commercial Loan Agreement.

 

PROMISE
TO PAY.  For value received, Borrower promises to pay
Lender or Lender’s order, at Lender’s address, x
$2,500,000.00 (Principal).

 

o  $                      (Principal)
or the Borrowing Base, whichever is less.

 

o            Single Advance.  Borrower will receive all of this Principal
in one advance.  No additional advances
are contemplated under this Note.

 

x          Multiple Advances.  The Principal amount stated above is the
maximum amount of Principal that Borrower may borrow under this Note.  On 10-04-2007 Borrower will receive $0.00 and
future advances are contemplated.  The
conditions for future advances are stated in the Commercial Loan Agreement.

 

INTEREST. 
Borrower agrees to pay interest on the outstanding Principal balance of
this Note at the rate of 6.880 percent per year until 11-01-2007.

 

x   Variable Rate.  This
rate may then change as follows.  The
future rate will be 1.750% above The Previous Month Average 30 Day Libor Rate
published in the Wall Street Journal. 
The rate may change as often as every month.  The rate may never be higher than N/A or less
than 6.000%.  A change in the interest
rate will affect the amount of each payment and the amount due at maturity.

 

x   Post Maturity/Default Interest.  Borrower agrees to pay interest on the unpaid
balance of this Note owing after maturity at the applicable rate plus 3.00%

 

MATURITY/DEMAND.  This Note is due on 10-04-2008.

 

PAYMENT. 
Borrower agrees to pay this Note as follows unless and until demand is
made (if applicable):

 

Monthly
payments of accrued interest calculated on the amount of credit outstanding
beginning on 11-04-2007 and principal due on 10-04-2008.  This is a variable rate loan and the payment
amounts may change.  The final payment
may also change.

 

All
payments must be made in United States dollars. 
Each payment Borrower makes on this Note will be applied first to any charges
Borrower owes other than Principal and interest, then to interest that is due,
and finally to Principal that is due.  If
Lender and Borrower agree to a different application of payments, that
application will be described on this Note. 
The actual amount of Borrower’s final payment will depend upon Borrower’s
payment record.

 

USE OF
PROCEEDS:  This loan is for business purposes.

 

WAIVERS
AND CONSENT.  Borrower waives protest, presentment for
payment, demand, and notices of acceleration, intent to accelerate, and
dishonor (if allowed by law).

 

x         ADDITIONAL TERMS.  Each
payment borrower makes on this note will be applied first to interest that is
due, then to Principal that is due and finally to any charges Borrower owes;

Interest
is computed for the actual number of days principal is unpaid on the basis of a
360 day year;

This
note is secured by all mortgages, security agreements and other documents
granting a lien or security interest in the borrower’s property to the bank and
all guaranties of borrower’s obligations to bank including but not limited to
Com Sec Agree dated 10/4/2007, Com Sec Agree dated 10/4/2007 pledged by R.B.A.
Inc. and Com Sec Agree dated 10/4/2007 pledged by Tower Tech Holdings Inc.

 

 

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

  	
  (Seal)

  	
   

  	
   

  	
  (Seal)

  
	
  Signature Steven A. Huntington, C.F.O

  	
  Date

  	
   

  	
   

  	
  Signature

  	
  Date

  	
   

  
	
   

  
	
   

  	
  (Seal)

  	
   

  	
   

  	
  (Seal)

  
	
  Signature

  	
  Date

  	
   

  	
  Signature

  	
  Date

  	
   

  
	
   

  
	
  LENDER:

  
	
   

  
	
  Investors Community Bank

  	
   

  
	
  Entity
  Name

  
	
   

  
	
  /s/Robert Boerger

  	
  (Seal)

  	
   

  	
   

  	
  (Seal)

  
	
  Signature
  Robert Boerger, Senior
  Commercial Lender

  	
  Date

  	
   

  	
  Signature

  	
  Date

  	
   

  
							

 

COMMERCIAL
PROMISSORY NOTE (not to be used for FNMA, FHLMC, FHA or VA or for consumer
loans)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]