Exhibit 10.8
COMMERCIAL
GUARANTY
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Principal
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Loan Date
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Maturity
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Loan No
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Call / Coll
1A2 / 101
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Account
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Officer
Krugeg
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Initials
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References in the boxes above are
for Lender’s use only and do not limit the applicability of
this document to any particular loan or item. Any item above
containing “***” has been omitted due to text length
limitations.
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Borrower:
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TOWER TECH SYSTEMS
INC
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Lender:
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GREAT WESTERN BANK
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101 S 16TH ST PO BOX
1957
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Sioux Falls
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MANITOWOC, Wl
54221-1957
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200 E 10th Street
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Sioux Falls, SD
57104
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Guaranto:
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BROADWIND ENERGY,
INC
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47 E CHICAGO AVE STE
332
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NAPERVILLE, IL
60540
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GUARANTEE OF PAYMENT AND
PERFORMANCE. For good and
valuable consideration, Guarantor absolutely and unconditionally
guarantees full and punctual payment and satisfaction of the
Indebtedness of Borrower to Lender, and the performance and
discharge of all Borrower’s obligations under the Note and
the Related Documents. This is a guaranty of payment and
performance and not of collection, so Lender can enforce this
Guaranty against Guarantor even when Lender has not exhausted
Lender’s remedies against anyone else obligated to pay the
Indebtedness or against any collateral securing the Indebtedness,
this Guaranty or any other guaranty of the Indebtedness. Guarantor
will make any payments to Lender or its order, on demand, in legal
tender of the United States of America, in same-day funds, without
set-off or deduction or counterclaim, and will otherwise perform
Borrower’s obligations under the Note and Related
Documents.
INDEBTEDNESS.
The word “Indebtedness”
as used in this Guaranty means all of the principal amount
outstanding from time to time and at any one or more times, accrued
unpaid interest thereon and all collection costs and legal expenses
related thereto permitted by law, attorneys’ fees, arising
from any and all debts, liabilities and obligations that Borrower
individually or collectively or interchangeably with others, owes
or will owe Lender under the Note and Related Documents and any
renewals, extensions, modifications, refinancings, consolidations
and substitutions of the Note and Related Documents.
If Lender presently holds one or
more guaranties, or hereafter receives additional guaranties from
Guarantor, Lender’s rights under all guaranties shall be
cumulative. This Guaranty shall not (unless specifically provided
below to the contrary) affect or invalidate any such other
guaranties. Guarantor’s liability will be Guarantor’s
aggregate liability under the terms of this Guaranty and any such
other unterminated guaranties.
CONTINUING GUARANTY.
THIS GUARANTY ENCOMPASSES A LINE OF
CREDIT AND GUARANTOR UNDERSTANDS AND AGREES THAT THIS GUARANTY
SHALL BE OPEN AND CONTINUOUS UNTIL THE INDEBTEDNESS IS PAID IN FULL
AND THE LENDER DECLARES THAT THE LINE OF CREDIT IS FULLY SATISFIED,
PERFORMED AND TERMINATED.
DURATION OF GUARANTY.
This Guaranty will take effect when
received by Lender without the necessity of any acceptance by
Lender, or any notice to Guarantor or to Borrower, and will
continue in full force until all the Indebtedness shall have been
fully and finally paid and satisfied and all of Guarantor’s
other obligations under this Guaranty shall have been performed in
full. Release of any other guarantor or termination of any other
guaranty of the Indebtedness shall not affect the liability of
Guarantor under this Guaranty. A revocation Lender receives from
any one or more Guarantors shall not affect the liability of any
remaining Guarantors under this Guaranty.
GUARANTOR’S AUTHORIZATION
TO LENDER. Guarantor
authorizes Lender, without notice or demand and without
lessening Guarantor’s liability under this Guaranty, from
time to time. (A) to make one or more additional secured
or unsecured loans to Borrower, to lease equipment or other goods
to Borrower, or otherwise to extend additional credit to Borrower;
(B) to alter, compromise, renew, extend, accelerate, or
otherwise change one or more times the time for payment or other
terms of the Indebtedness or any part of the Indebtedness,
including increases and decreases of the rate of interest on the
Indebtedness; extensions may be repeated and may be for longer than
the original loan term; (C) to take and hold security for the
payment of this Guaranty or the Indebtedness, and exchange,
enforce, waive, subordinate, fail or decide not to perfect, and
release any such security, with or without the substitution of new
collateral; (D) to release, substitute, agree not to sue, or
deal with any one or more of Borrower’s sureties, endorsers,
or other guarantors on any terms or in any manner Lender may
choose; (E) to determine how, when and what application of
payments and credits shall be made on the Indebtedness; (F) to
apply such security and direct the order or manner of sale thereof,
including without limitation, any nonjudicial safe permitted by the
terms of the controlling security agreement or deed of trust, as
Lender in its discretion may determine; (G) to sell, transfer,
assign or grant participations in all or any part of the
Indebtedness; and (H) to assign or transfer this Guaranty in
whole or in part.
GUARANTOR’S REPRESENTATIONS
AND WARRANTIES. Guarantor
represents and warrants to Lender that (A) no representations
or agreements of any kind have been made to Guarantor which would
limit or qualify in any way the terms of this Guaranty;
(B) this Guaranty is executed at . Borrower’s request and not at the
request of Lender; (C) Guarantor has full power, right and
authority to enter into this Guaranty; (D) the provisions of
this Guaranty do not conflict with or result in a default under any
agreement or other instrument binding upon Guarantor and do not
result in a violation of any law, regulation, court decree or order
applicable to Guarantor; (E) Guarantor has not and will not,
without the prior written consent of Lender, sell, lease, assign,
encumber, hypothecate, transfer, or otherwise dispose of all or
substantially all of Guarantor’s assets, or any interest
therein; (F) upon Lender’s request, Guarantor will
provide to Lender financial and credit information in form
acceptable to Lender, and all such financial information which
currently has been, and all future financial information which will
be provided to Lender is and will be true and correct in all
material respects and fairly present Guarantor’s financial
condition as of the dates the financial information is provided;
(G) no material adverse change has occurred in
Guarantor’s financial condition since the date of the most
recent financial statements provided to Lender and no event has
occurred which may materially adversely affect Guarantor’s
financial condition; (H) no litigation, claim, investigation,
administrative proceeding or similar action (including those for
unpaid taxes) against Guarantor is pending or threatened;
(I) Lender has made no representation to Guarantor as to the
creditworthiness of Borrower; and (J) Guarantor has
established adequate means of obtaining from Borrower on a
continuing basis information regarding Borrower’s financial
condition. Guarantor agrees to keep adequately informed from such
means of any facts, events, or circumstances which might in any way
affect Guarantor’s risks under this Guaranty, and Guarantor
further agrees that, absent a request for information, Lender shall
have no obligation to disclose to Guarantor any information or
documents acquired by Lender in the course of its relationship with
Borrower.
GUARANTOR’S FINANCIAL
STATEMENTS. Guarantor
agrees to furnish Lender with the following:
Annual Statements.
As soon as available, but in no
event later than one-hundred-twenty (120) days after the end of
each fiscal year, Guarantor’s balance sheet and income
statement for the year ended, compiled by a certified public
accountant satisfactory to Lender.
Interim Statements.
As soon as available, but in no
event later than 45 days after the end of each fiscal quarter,
Guarantor’s balance sheet and profit and loss statement for
the period ended, prepared by Guarantor.
Tax Returns.
As soon as available, but in no
event later than thirty (30) days after the applicable filing date
for the tax reporting period ended, Federal and other governmental
tax returns, prepared by a certified public accountant satisfactory
to Lender.
All financial reports required to be
provided under this Guaranty shall be prepared in accordance with
GAAP, applied on a consistent basis, and certified by Guarantor as
being true and correct.
GUARANTOR’S
WAIVERS. Except as
prohibited by applicable law, Guarantor waives any right to require
Lender (A) to continue lending money or to extend other credit
to Borrower; (B) to make any presentment, protest, demand, or
notice of any kind, including notice of any nonpayment of the
Indebtedness or of any nonpayment related to any collateral, or
notice of any action or nonaction on the part of Borrower, Lender,
any surety, endorser, or other guarantor in connection with the
Indebtedness or in connection with the creation of new or
additional loans or obligations; (C) to resort for payment or to
proceed directly or at once against any person, including Borrower
or any other guarantor; (D) to proceed directly against or exhaust
any collateral held by Lender from Borrower, any other guarantor,
or any other person; (E) to give notice of the terms, time,
and place of any public or private sale of personal property
security held by Lender from Borrower or to comply with any other
applicable provisions of the Uniform Commercial Code; (F) to pursue
any other remedy within Lender’s power; or (G) to commit any
act or omission of any kind, or at any time, with respect to any
matter whatsoever.
Guarantor also waives any and all
rights or defenses based on suretyship or impairment of collateral
including, but not limited to, any rights or defenses arising by
reason of (A) any “one ac