NOTE EXTENSION AGREEMENT

Exhibit 10.3

NOTE EXTENSION AGREEMENT

This Note Extension Agreement (the “Agreement”) is dated as of August 30, 2008 and is made by and between BRAD FOOTE GEAR WORKS, INC., f/k/a BFG Acquisition Corp., an Illinois corporation (“Borrower”) and LASALLE BANK NATIONAL BANK f/k/a LaSalle National Bank f/k/a LaSalle Bank NI, a national banking association (the “Bank”).

R E C I T A L S

A.            Borrower has previously delivered to the Bank its Amended and Restated Renewal Revolving Note dated January 15, 2008 in the principal amount of $10,000,000.00, as modified and extended by Note Extension Agreement dated as of June 30, 2008 (the “Note”), evidencing a revolving line of credit loan extended by the Bank to the Borrower; and

B.            The Note matures on August 30, 2008, and Borrower has asked the Bank to extend the maturity date of the Note until October 31, 2008; and

C.    &nb