Document:

EXHIBIT 10.26

 

TWENTY-THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

                THIS
TWENTY-THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”)
is dated as of October 4, 2007 between BRAD FOOTE GEAR WORKS, INC. f/k/a
BFG Acquisition Corp., an Illinois corporation (“Borrower”) and LASALLE BANK
NATIONAL ASSOCIATION f/k/a LaSalle National Bank f/k/a LaSalle Bank NI (“Lender”).

 

                WHEREAS, Borrower and
Lender have entered in that certain Loan and Security Agreement dated as of January 17,
1997, as amended by those certain letter amendments dated February 28,
1997 and July 23, 1997 and those certain Third, Fourth, Fifth, Sixth,
Seventh, Eighth, Ninth, Eleventh, Twelfth, Thirteenth, Fourteenth, Fifteenth,
Sixteenth, Seventeenth, Eighteenth, Nineteenth, Twentieth, Twenty-First and
Twenty-Second Amendments to Loan and Security Agreement dated as of March 30,
1998, December 1, 1998, June 1, 1999, December 19, 2000, May 1,
2001, July 1, 2001, April 30, 2002, April 29, 2003, July 3,
2003, April 29, 2004, November 15, 2004, April 29, 2005, June 15,
2005, February 1, 2006, April 29, 2006, November 10, 2006, January 8,
2007, April 29, 2007 and June 30, 2007, respectively, and that
certain letter amendment (herein, the “Tenth Amendment”) dated October 17,
2002 (such agreement, as so amended, the “Loan Agreement”) with regard to the
following loans made by Lender to Borrower: 
(i) a $6,500,000.00 revolving line of credit loan (the “Revolving
Loan”), (ii) a consolidated term loan in the original principal sum of
$7,899,332.98 (the “Term Loan”), and (iii) an $11,000,000.00 non-revolving
equipment line of credit loan with term conversion feature (the “Equipment Loan”);
and

 

                WHEREAS, Borrower has
asked Lender to (i) increase the amount of the Revolving Loan to
$7,000,000.00, and (ii) modify the borrowing base formula for the
Revolving Loan to provide for advances against eligible inventory, and (iii) make
certain other changes to the Loan Agreement; and

 

                WHEREAS, Lender has
agreed to the foregoing loan requests provided Borrower executes and delivers
such documents and instruments required by Lender, including, the promissory
note described below and this Amendment;

 

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

 

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

 

2.             The definitions of “Borrowing
Base”, “Commitment Amount” and “Revolving Loan” in Section 1.1 of the Loan
Agreement, are each amended in its entirety to read as follows:

 

                “Borrowing
Base” shall mean, as of any applicable date of determination, an amount
equal to the sum of (i) eighty percent (80%) of Borrower’s Eligible
Accounts, and (ii) the lesser 

 

 

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of
(a) twenty-five percent (25%) of Borrower’s Eligible Inventory, or (b) Two
Million Dollars ($2,000,000.00).

 

                “Commitment
Amount” shall mean, as of any applicable date of determination, Seven Million
and 00/100 ($7,000,000.00) Dollars.

 

                “Revolving
Loan” shall mean the $7,000,000.00 revolving line of credit loan extended by
the Lender to the Borrower under Section 2 of this Agreement, and any and
all extensions, renewals, amendments, modifications, refinancings, conversions,
consolidations and increases thereof or thereto.

 

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

 

                “Eligible
Inventory” shall mean such items of Inventory included in a
Borrowing Base Certificate which, as of the date of such Borrowing Base
Certificate and at all times thereafter: 
(i) satisfy the requirements for eligibility as described in Section 2.6A
of this Agreement, (ii) do not violate the negative covenants and other
provisions of this Agreement and do satisfy the affirmative covenants and other
provisions of this Agreement, and (iii) are deemed by Lender, in its sole
credit judgment, to be Eligible Inventory.

 

4.             The first sentence of the
first paragraph in Section 2.3 of the Loan Agreement is amended to read as
follows:

 

                “2.3         Revolving Note.  The Revolving Loan shall be evidenced by an
amended and restated renewal revolving note, executed by the Borrower, dated October 4,
2007, payable to the Lender on June 30, 2008, and in the principal sum of
Seven Million and 00/100 ($7,000,000.00) Dollars (the “Revolving Note”).”

 

Hereafter,
all references in the Loan Agreement and in this Amendment to the term “Revolving
Note” shall be deemed to refer to the aforesaid amended and restated renewal
revolving note dated October 4, 2007 in the principal sum of
$7,000,000.00, executed by Borrower, payable to the order of Lender on June 30,
2008, together with interest payable monthly as therein described.

 

5.             The Loan Agreement is hereby
amended to add the following new subsection 2.6A thereto:

 

                “2.6A.  Eligible Inventory.  Upon Borrower’s delivery to Lender of a
Borrowing Base Certificate, Lender shall determine, in its sole discretion,
which Inventory listed thereon is “Eligible Inventory”.  In making this determination, Lender will
consider the following requirements:

 

(a)           the Inventory consists
solely of raw materials or finished goods (but not work-in-progress);

 

 

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(b)           the Inventory is in good and
merchantable condition, is not slow-moving, obsolete or discontinued;

 

(c)           the Inventory is located on
premises listed in Exhibit C
attached hereto;

 

(d)           the Inventory is not covered
by or subject to a seller’s right to repurchase, or any consensual or
nonconsensual lien or security interest, other than in favor of Lender;

 

(e)           the Inventory does not
consist of packaging or supplies;

 

(f)            the Inventory was not
produced in violation of the Fair Labor Standards Act and subject to the “hot
goods” provisions contained in Title 29 U.S.C. 
§215;

 

(g)           the Inventory is not subject
to any agreement or license which would restrict the Lender’s ability to sell
or otherwise dispose of such Inventory;

 

(h)           the Inventory is not
identified to any purchase order or contract to the extent progress or advance
payments are received with respect to such Inventory; and

 

(i)            the Lender shall not have
determined in its reasonable discretion that the Inventory is unacceptable due
to age, type, category, quality, quantity and/or any other reason whatsoever.

 

Inventory
which is at any time Eligible Inventory, but which subsequently fails to meet
any of the foregoing requirements, shall forthwith cease to be Eligible
Inventory.

 

2.6A.1     Reserves.  The Lender may establish reserves in such
amounts, and with respect to such matters, as Lender shall, in its sole
reasonable credit judgment, deem necessary or appropriate, against the amount
of Revolving Loan which Borrower may otherwise request under this Section 2,
including, without limitation, with respect to (i) price adjustments,
damages, unearned discounts, returned products or other matters for which
credit memoranda are issued in the ordinary course of Borrower’s business; (ii) shrinkage,
spoilage and obsolescence of Inventory; (iii) slow moving Inventory; (iv) other
sums chargeable against Borrower’s loan account under any section of this
Agreement; and (v) such other matters, events, conditions or contingencies
as to which the Lender, in its sole discretion, determines from time to time
should be established.”

 

6.             The Loan Agreement is hereby
amended to add the following new subsection 13.2A thereto:

 

                “13.2A    Inventory Representations
and Warranties.  Borrower
represents and warrants that Lender may rely, in determining which Inventory
listed on any Borrowing Base Certificate is Eligible Inventory, without
independent investigation of any statements or representations made by Borrower
on or with respect to any such Borrowing Base Certificate, and unless otherwise
indicated in writing by Borrower, that:

 

(a)           The Inventory consists
solely of raw materials or finished goods (and not work-in-progress);

 

 

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(b)           the Inventory is in good and
merchantable condition, is not slow-moving, obsolete or discontinued;

 

(c)           the Inventory is located on
premises listed in Exhibit C;

 

(d)           the Inventory is not subject
to any lien, claim, security interest or other encumbrance whatsoever, except
the security interest of Lender hereunder;

 

(e)           the Inventory does not
consist of packaging or supplies;

 

(f)            the Inventory has not been
consigned;

 

(g)           the Inventory is not now,
and shall not at any time or times hereafter be, stored with a bailee,
warehouseman or similar party without Lender’s prior written consent, and, if
Lender gives such consent, Borrower will concurrently therewith cause any such
bailee, warehouseman or similar party to execute and deliver to Lender, a
warehouseman’s or similar agreement, in form and substance acceptable to
Lender;

 

(h)           the Inventory was not
produced in violation of the Fair Labor Standards Act and subject to the “hot
goods” provisions contained in Title 29 U.S.C. 
§215;

 

(i)            the Inventory is not subject
to any agreement or license which would restrict the Lender’s ability to sell
or otherwise dispose of such Inventory;

 

(j)            the Inventory is not
identified to any purchase order or contract to the extent progress or advance
payments are received with respect to such Inventory; and

 

(k)           No covenant, representation
or warranty contained in this Agreement with respect to such Inventory has been
breached.”

 

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

 

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

 

 

4

 

under
the Loan Agreement as amended hereby, each and all of which are and shall
remain applicable to the Collateral.

 

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

 

9.             In order to induce Lender to
enter into this Amendment, the Borrower hereby represents and warrants to the
Lender that as of the date hereto, each of the representations and warranties
set forth in the Loan Agreement, as amended hereby, are true and correct and
the Borrower is in full compliance with all of the terms and conditions of the
Loan Agreement, as amended hereby, and no Event of Default or Default has
occurred and is continuing.

 

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

 

11.           Borrower further agrees to
reimburse the Lender for its legal fees incurred in documenting the aforesaid
Revolving Loan increase and other modifications hereinabove described.

 

[signature
page follows]

 

 

5

 

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

 

	
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BRAD
  FOOTE GEAR WORKS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  J. Cameron Drecoll

  	
   

  	
   

  	
   

  
	
   

  	
  J.
  Cameron Drecoll

  	
   

  	
   

  
	
  Title:
  

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Joan M. Drecoll

  	
   

  	
   

  	
   

  
	
   

  	
  Joan
  M. Drecoll

  	
   

  	
   

  
	
  Title:
  

  	
  Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lender:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LASALLE
  BANK NATIONAL ASSOCIATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  [ILLEGIBLE]

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  

 

 

6EXHIBIT 10.27

 

TWENTY-FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

                THIS
TWENTY-FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”)
is dated as of October 18, 2007 between BRAD FOOTE GEAR WORKS, INC. f/k/a
BFG Acquisition Corp., an Illinois corporation (“Borrower”) and LASALLE BANK
NATIONAL ASSOCIATION f/k/a LaSalle National Bank f/k/a LaSalle Bank NI (“Lender”).

 

                WHEREAS,
Borrower and Lender have entered into that certain Loan and Security Agreement
dated as of January 17, 1997, as amended by those certain letter
amendments dated February 28, 1997 and July 23, 1997 and those
certain Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Eleventh, Twelfth,
Thirteenth, Fourteenth, Fifteenth, Sixteenth, Seventeenth, Eighteenth,
Nineteenth, Twentieth, Twenty-First, Twenty-Second and Twenty-Third Amendments
to Loan and Security Agreement dated as of March 30, 1998, December 1,
1998, June 1, 1999, December 19, 2000, May 1, 2001, July 1,
2001, April 30, 2002, April 29, 2003, July 3, 2003, April 29,
2004, November 15, 2004, April 29, 2005, June 15, 2005, February 1,
2006, April 29, 2006, November 10, 2006, January 8, 2007, April 29,
2007, June 30, 2007, and October 4, 2007, respectively, and that
certain letter amendment (herein, the “Tenth Amendment”) dated October 17,
2002 (such agreement, as so amended, the “Loan Agreement”) with regard to the
following loans made by Lender to Borrower: (i) a $7,000,000.00 revolving
line of credit loan (the “Revolving Loan”), (ii) a consolidated term loan
in the original principal sum of $7,899,332.98 (the “Term Loan”), (iii) an
$11,000,000.00 non-revolving equipment line of credit loan with term conversion
feature (the “Equipment Loan”), and (iv) a $9,000,000.00 non-revolving
equipment line of credit loan with term conversion feature (the “Equipment Loan
No. 2”); and

 

                WHEREAS,
Borrower has informed Lender that ownership of all shares of the capital stock
of Borrower has been or is about to be purchased by Tower Tech Holdings Inc., a
Nevada corporation (“Tower Tech”), who, upon the consummation of such sale, is
now or will become the parent company of the Borrower, and Borrower has become
or will become a wholly-owned subsidiary of the Borrower [sic]; and

 

                WHEREAS,  Borrower has asked Lender to (i) waive
Borrower’s violation of the change in control provisions in the Loan Agreement
and modify such provision prospectively, and (ii) modify the Borrower’s
financial covenants set forth in the Loan Agreement, and (iii) make
certain other changes to the Loan Agreement; and

 

                WHEREAS,
Lender has agreed to the foregoing loan requests provided Borrower executes and
delivers such documents and instruments required by Lender, including the
promissory note described below and this Amendment;

 

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

 

 

1

 

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

 

2.             In Section 1.1 of the Loan
Agreement, the definitions of “Capital Expenditures”, “Debt”, “EBITDA” and “Net
Income” are hereby deleted.

 

3.             Section 10 of the Loan
Agreement is hereby amended to add the following additional paragraph at the
end of Section 10:

 

“As
soon as available, but not later than one hundred twenty (120) days after the
end of each fiscal year of Tower Tech Holdings Inc., a Nevada corporation (“Tower
Tech”), Borrower shall furnish the Lender with annual audited financial
statements of Tower Tech, containing the balance sheet of Tower Tech as of the
close of each such fiscal year, statements of income and retained earnings and
a statement of cash flows for each such fiscal year, and including
consolidating statements of any and all subsidiaries of Tower Tech, including,
but not limited to the Borrower, and such other comments and financial details
as are usually included in similar reports. 
Such financial statements shall (a) be in form and reporting basis
satisfactory to the Lender, (b) be prepared in accordance with GAAP and
certified by an independent certified public accounting firm of recognized
standing selected by Tower Tech and reasonably acceptable to the Lender, and (c) contain
unqualified opinions as to the fairness of the statements therein contained and
be without adverse reference to going concern. 
Borrower shall also provide to the Lender any management letters that
may accompany such statements.”

 

4.             Borrower has informed Lender that
ownership of all shares of the capital stock of Borrower has been or is about
to be purchased by Tower Tech, and that upon consummation of such sale, Tower
Tech is or will be the parent company of the Borrower, and Borrower has become
or will become a wholly-owned subsidiary of the Borrower [sic].  The consummation of such sale would violate
the terms of Section 14.3(e) and Section 14.3(g) of the
Loan Agreement.  Lender hereby waives
Borrower’s violation of the foregoing covenants set forth in Section 14.3(e) and
Section 14.3(g) of the Loan Agreement, triggered by the aforesaid
sale of all the capital stock of Tower Tech. 
Said waivers are limited solely to such specific covenant violations,
and shall not waive, suspend, or affect any other default by Borrower under the
Loan Agreement, and Lender expressly reserves all of its rights and remedies
with respect to any such other default(s).

 

5.             Section 14.1 of the Loan
Agreement is amended in its entirety to read as follows:

 

                “14.1  Financial Covenants.  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, except as
expressly permitted by Section 14.3(i) hereof.  This covenant will be measured at all times.

 

                (b)           Limitation on Debts Owed To Or By Affiliates.  Indebtedness owed by Borrower to Affiliates
and/or from Affiliates to Borrower will not exceed Five Hundred Thousand
Dollars 

 

 

2

 

($500,000.00)
in the aggregate at all times.  The
foregoing sentence shall not be deemed to prohibit or apply to the approximate
$25,000,000.00 in aggregate principal debt owed by Tower Tech to Tontine
Overseas Funds, Ltd., Tontine Partners, L.P. and Tontine Capital Overseas
Master Fund, L.P., which debt shall be evidenced by senior subordinated
convertible promissory notes executed by Tower Tech in favor of such payees,
and subordinated to all present and future indebtedness owed by Borrower to
Lender pursuant to written subordination agreements in form acceptable to
Lender.

 

                (c)           Subordinated Debt Payments.  Borrower will not make any payments on
Subordinated Debt except for interest payments thereon permitted in accordance
with Section 14.3(i) hereof.

 

                (d)           Senior Debt to EBITDA.  As of the end of each of its fiscal quarters,
the Borrower shall maintain a ratio of Senior Debt to EBITDA of not greater
than 3.0 to 1.0.  This covenant will be
tested quarterly on a trailing twelve month basis, beginning with the quarter
ended December 31, 2007.

 

                (e)           Cash Flow Coverage. 
Borrower will maintain at the end of each fiscal year of Borrower a Cash
Flow Coverage of not less than 1.20 to 1.0 (to be tested annually by the
Lender).

 

For
purposes of the foregoing financial covenants, the following definitions shall
have the following meaning:

 

“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.

 

“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 have the meaning set forth in Section 1.1 hereof.

 

“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 

 

 

3

 

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 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
statement and determined in accordance with GAAP.

 

“EBITDA”
shall mean, for any period, (a) the sum of 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 of 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 (iii) distributions.

 

“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 other than Subordinated Debt.

 

                The financial requirements set
forth hereinabove shall be computed in accordance with GAAP.”

 

 

4

 

6.             Section 14.3(e), Section 14.3(g) and
Section 14.3(i) of the Loan Agreement are hereby each amended to read
as follows:

 

“(e)         Wind up, liquidate, or dissolve itself,
reorganize, merge or consolidate with or into, or convey, sell, assign,
transfer, lease, or otherwise dispose of (whether in one transaction or a
series of transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) or its business to any Person, or acquire all or
substantially all of the assets or the business of any Person or enter in the
sale of any capital stock of Borrower, which shall result in a change of
control of the Borrower (other than the sale of the Borrower’s capital stock to
Tower Tech Holdings Inc., a Nevada corporation; hereafter, “Tower Tech”); or”

 

“(g)         Permit any change in the ownership of
the shares of Borrower which shall result in a change of control of the
Borrower (other than the sale of the Borrower’s capital stock to Tower Tech);
or”

 

“(i)          (1) make any distribution or
dividend (other than stock dividends), whether in cash or otherwise, to any of
its equityholders, (2) purchase or redeem any of its equity interest or any
warrants, options or other rights in respect thereof, (3) pay any
management fees or similar fees to any of its equityholders or any Affiliate
thereof, (4) pay or prepay interest on, principal of, premium, if any,
redemption, conversion, exchange, purchase, retirement, defeasance, sinking
fund or any other payment in respect of any Subordinated Debt, or (5) set
aside funds for any of the foregoing. 
Notwithstanding the foregoing, so long as no Default or Event of Default
exists or would result therefrom, the Borrower may make regularly scheduled
payments of interest in respect of Subordinated Debt to the extent permitted
under any subordination agreement executed by the Lender and any subordinated
noteholder; or”

 

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

 

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

 

 

5

 

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

 

9.             In order to induce Lender to enter
into this Agreement, the Borrower hereby represents and warrants to the Lender
that as of the date hereto, each of the representations and warranties set
forth in the Loan Agreement, as amended hereby, are true and correct and the
Borrower is in full compliance with all of the terms and conditions of the Loan
Agreement, as amended hereby, and no Event of Default or Default has occurred
and is continuing.

 

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

 

11.           Borrower further agrees to reimburse
the Lender for its legal fees incurred in preparing and documenting the
aforesaid loan modifications hereinabove described.

 

[SIGNATURE PAGE FOLLOWS]

 

 

6

 

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

 

	
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BRAD
  FOOTE GEAR WORKS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  J. Cameron Drecoll

  	
   

  	
   

  	
   

  
	
   

  	
  J.
  Cameron Drecoll

  	
   

  	
   

  
	
  Title:
  

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Joan M. Drecoll

  	
   

  	
   

  	
   

  
	
   

  	
  Joan
  M. Drecoll

  	
   

  	
   

  
	
  Title:
  

  	
  Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lender:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LASALLE
  BANK NATIONAL ASSOCIATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen P. Mares

  	
   

  	
   

  	
   

  
	
   

  	
  Stephen
  P. Mares

  	
   

  	
   

  	
   

  
	
  Title:

  	
  FVP

  	
   

  	
   

  	
   

  

 

 

7

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"}]]