Document:

Exhibit 10.2

 

PROMISSORY NOTE MODIFICATION
AGREEMENT

 

THIS PROMISSORY NOTE MODIFICATION AGREEMENT (“Modification”)
is made and entered into on January 30, 2008 but is effective as of January 31,
2008 by and among Northern Technologies International Corporation (collectively
“Borrower”) and NATIONAL CITY BANK, A NATIONAL BANKING ASSOCIATION (“Bank”).

 

WHEREAS, Bank agreed to lend to Borrower an amount
not to exceed the sum of One Million Five Hundred Thousand and 00/100 Dollars
($1,500,000.00) (“Loan”), which Loan was evidenced by a certain Commercial
Note: Revolving Credit dated August 6, 2004 in the face amount of Five
Hundred Thousand and 00/100 Dollars ($500,000.00) (as extended, amended or
otherwise modified to date, the “Note”) (the said Note and any other instrument
or document given in connection with or to secure the Loan being collectively
referred to as “Loan Documents”).

 

WHEREAS, the parties hereto desire to modify the Note
as hereinafter provided.

 

NOW, THEREFORE, in consideration of the foregoing
promises and the covenants contained herein, the parties hereto agree as
follows:

 

Liability of Borrower.  Borrower hereby ratifies and reconfirms
Borrower’s obligations and all liability to Bank under the terms and conditions
of the Loan Documents and acknowledges that Borrower has no defenses to or
rights of set-off against Borrower’s obligations and all liability to Bank
thereunder. Borrower further acknowledges that Bank has performed all of Bank’s
obligations under the Loan Documents.

 

Modification. The Note is hereby modified to extend
the expiration date from January 31, 2008 to January 31, 2009.

 

The next payment is due February 1, 2008 and
monthly thereafter as set forth in the above mentioned note. Payments prior to
the first scheduled payment above have been made as evidenced by the books and
records of Bank.

 

Ratification of Loan Documents. The Loan Documents
are in all respects ratified and confirmed by the parties hereto and
incorporated by reference herein, and each of the Loan Documents and this
Modification shall be read, taken and construed as one and the same instrument.
Capitalized terms used herein and not otherwise defined shall have the meanings
given to them in the Note. In the event of any conflict between the terms and
provisions of this Modification and the terms and provisions of the Note, the
terms and provisions of this Modification shall control.

 

Confession of Judgment. Borrower hereby authorizes
any attorney at law to appear in any state or federal court of record in the
United States of America after the maturity hereof (whether occurring by lapse
of time or acceleration), to waive the issuance and service of process, to
admit the maturity of the Note and the amount then appearing due, to confess
judgment against Borrower in favor of the holder hereof for the amount then
appearing due, together with interest and costs of suit, and thereupon to
release all errors and to waive all rights of appeal and stay of execution. No
judgment shall bar any subsequent judgment. Should any judgment be vacated for
any reason, this warrant of attorney nevertheless may thereafter be used for
obtaining additional judgments.

 

IN WITNESS WHEREOF, the undersigned have caused this
Modification to be executed as of the day and year first above written.

 

WARNING-BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT
TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE
TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE
USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE
CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO
COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE. NTIC

 

	
   

  	
  By: 

  	
  Matthew Wolsfeld

  
	
   

  	
  Its: CFO

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK, A
  NATIONAL BANKING ASSOCIATION

  
	
   

  	
  By 

  	
  Joseph McMullen, Jr.

  
	
   

  	
  Its: VP

  

 

 

1Exhibit 10.3

 

PROMISSORY NOTE MODIFICATION AGREEMENT

 

THIS PROMISSORY NOTE MODIFICATION AGREEMENT (“Modification”)
is made and entered into on April 10, 2008 by and among Northern
Technologies International Corporation (collectively “Borrower”) and NATIONAL
CITY BANK, A NATIONAL BANKING ASSOCIATION (“Bank”).

 

WHEREAS, Bank agreed to lend to Borrower an amount
not to exceed the sum of Eight Hundred Thousand and 00/100 Dollars
($800,000.00) (“Loan”), which Loan was evidenced by a certain Commercial Note:
Demand Line of Credit dated December 14, 2006 in the face amount of Six
Hundred Thousand and 00/100 Dollars ($600,000.00) (as extended, amended or
otherwise modified to date, the “Note”) (the said Note and any other instrument
or document given in connection with or to secure the Loan being collectively
referred to as “Loan Documents”) .

 

WHEREAS, the parties hereto desire to modify the Note
as hereinafter provided.

 

NOW, THEREFORE, in consideration of the foregoing
promises and the covenants contained herein, the parties hereto agree as
follows:

 

Liability of Borrower. Borrower hereby ratifies and
reconfirms Borrower’s obligations and all liability to Bank under the terms and
conditions of the Loan Documents and acknowledges that Borrower has no defenses
to or rights of set-off against Borrower’s obligations and all liability to
Bank thereunder. Borrower further acknowledges that Bank has performed all of
Bank’s obligations under the Loan Documents.

 

Modification. The Note is hereby modified to provide
that, effective as of April 10, 2008 the face amount of the Note shall be
permanently increased to the sum of Two Million Three Hundred Thousand and
00/100 Dollars ($2,300,000.00).

 

Prior payments have been made as evidenced by the
books and records of Bank.

 

Ratification of Loan Documents. The Loan Documents
are in all respects ratified and confirmed by the parties hereto and
incorporated by reference herein, and each of the Loan Documents and this
Modification shall be read, taken and construed as one and the same instrument.
Capitalized terms used herein and not otherwise defined shall have the meanings
given to them in the Note. In the event of any conflict between the terms and
provisions of this Modification and the terms and provisions of the Note, the
terms and provisions of this Modification shall control. NOTWITHSTANDING ANY
PROVISION OR INFERENCE TO THE CONTRARY HEREIN, BORROWER ACKNOWLEDGES THAT THE
NOTE IS A DEMAND NOTE AND THAT BANK SHALL CONTINUE TO HAVE NO OBLIGATION TO
EXTEND ANY CREDIT TO OR FOR THE ACCOUNT OF BORROWER BY REASON OF THE NOTE.

 

Confession of Judgment. Borrower hereby authorizes
any attorney at law to appear in any state or federal court of record in the
United States of America after the maturity hereof (whether occurring by lapse
of time or acceleration), to waive the issuance and service of process, to
admit the maturity of the Note and the amount then appearing due, to confess
judgment against Borrower in favor of the holder hereof for the amount then
appearing due, together with interest and costs of suit, and thereupon to
release all errors and to waive all rights of appeal and stay of execution. No
judgment shall bar any subsequent judgment. Should any judgment be vacated for
any reason, this warrant of attorney nevertheless may thereafter be used for
obtaining additional judgments.

 

IN WITNESS WHEREOF, the undersigned have caused this
Modification to be executed as of the day and year first above written.

 

WARNING-BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT
TO NOTICE AND COURT TRIAL.  IF YOU DO NOT
PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR
KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS
OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED
GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR
ANY OTHER CAUSE.

 

	
   

  	
  NTIC

  
	
   

  	
  By: 

  	
  Matthew Wolsfeld

  
	
   

  	
  Its: CFO

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK, A
  NATIONAL BANKING ASSOCIATION

  
	
   

  	
  By 

  	
  Joseph McMullen, Jr.

  
	
   

  	
  Its: VP

  

 

 

1Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

AGREEMENT made
and entered into by and between FiberTower Corporation, a Delaware corporation,
(the “Company”) and Kurt J. Van Wagenen (the “Executive”) on the 9th day of April,
2008.

 

WHEREAS, the
operations of the Company and its Affiliates are a complex matter requiring
direction and leadership in a variety of arenas, including financial, strategic
planning, regulatory, community relations and others;

 

WHEREAS, the
Executive is possessed of certain experience and expertise that qualify him to
provide the direction and leadership required by the Company and its
Affiliates; and

 

WHEREAS,
subject to the terms and conditions hereinafter set forth, the Company
therefore wishes to employ the Executive as its President and Chief Executive
Officer and the Executive wishes to accept such employment;

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual promises,
terms, provisions and conditions set forth in this Agreement, the parties
hereby agree:

 

1.             Employment.
Subject to the terms and conditions set forth in this Agreement, the Company
hereby offers and the Executive hereby accepts employment.

 

2.             Term.
Subject to earlier termination as hereafter provided, this Agreement shall have
an original term of three (3) years commencing on the date hereof (the “Effective
Date”) and shall be automatically extended thereafter for successive terms of
one (1) year each, unless either party provides notice to the other at
least sixty (60) days prior to the expiration of the original or any extension
term that the Agreement is not to be extended. The term of this Agreement, as
from time to time extended or renewed, is hereafter referred to as “the term of
this Agreement” or “the term hereof.”

 

3.             Capacity
and Performance.

 

(a)           During
the term hereof, the Executive shall serve the Company as its President and
Chief Executive Officer. In addition, the Company shall promptly nominate and
recommend the Executive for membership on the Board of Directors of the Company
(the “Board”), and if so elected or appointed, without further compensation,
during the term hereof, the Executive shall serve as a member of the Board and,
if so elected or appointed from time to time, also shall serve as a director
and/or officer of one or more of the Company’s Affiliates.

 

(b)           During
the term hereof, the Executive shall be employed by the Company on a full-time
basis and shall perform the duties of his position and such other duties on
behalf of the Company and its Affiliates, reasonably consistent with his
position, as may be designated from time to time by the 

 

 

Board or its designee; provided that the Company recognizes that there
will be a transition period from the Effective Date through June 30, 2008
during which the Executive shall perform his duties in part from his current
location in Massachusetts, which shall not be deemed a violation of this
provision or constitute Cause within the meaning of Section 5(c).

 

(c)           During
the term hereof, the Executive shall devote his full business time and his best
efforts, business judgment, skill and knowledge exclusively to the advancement
of the business and interests of the Company and its Affiliates and to the
discharge of his duties and responsibilities hereunder. The Executive shall not
engage in any other business activity or accept any professional, governmental
or academic position during the term of this Agreement, except for non-profit
activities that do not materially interfere with the performance of the
Executive’s services hereunder or as may be expressly approved in advance by
the Board in writing.

 

4.             Compensation
and Benefits. As compensation for all services performed by the Executive
under and during the term hereof and subject to performance of the Executive’s
duties and of the obligations of the Executive to the Company and its
Affiliates pursuant to this Agreement:

 

(a)           Base
Salary. The Company shall pay the Executive a base salary at the rate of
Three Hundred and Fifty Thousand Dollars ($350,000) per annum, payable in accordance
with the payroll practices of the Company for its executives.  Such base salary shall be reviewed by the
Board on no less than an annual basis, and shall be subject to increase at such
times by the Board, in its sole discretion, but shall not be subject to
decrease. Such base salary, as from time to time increased, is hereafter
referred to as the “Base Salary.”

 

(b)           Incentive
and Bonus Compensation.

 

(i)            The
Executive shall be eligible annually for a bonus (the “Annual Bonus”) as
determined by the Board with a target (the “Target Bonus”) of 75% of the Base
Salary.  The range of possible Annual
Bonus shall be determined annually but shall not be less than 150% of the
Target Bonus on the upside.  For 2008,
the range of potential Annual Bonus shall be 0% to 200% of Target Bonus. The
amount of the Annual Bonus shall be determined annually by the Board, based on
its assessment, in its reasonable discretion, of the Executive’s performance
and that of the Company against appropriate and reasonably obtainable goals
which shall be established no later than March 31st of the
calendar year in question by the Compensation Committee of the Board after
consultation with the Executive.  The
parties acknowledge that the Compensation Committee may revise the bonus goals
applicable to all executives of the Company, including the Executive, during a 

 

2

 

calendar year in consultation with the Executive.  In the event an Annual Bonus is payable
hereunder for a portion of a calendar year (such as 2008, when the Executive
will not have been employed for a full calendar year), the Annual Bonus will be
pro-rated for the portion of the year during which the Executive was employed
by the Company.  The Annual Bonus
(including any pro-rated bonus), if any, shall be paid in accordance with the
Company’s regular bonus payment practices but not later than two and one-half
months following the end of the calendar year during which the bonus was
earned. Any bonus or incentive compensation paid to the Executive shall be in
addition to the Base Salary.

 

(ii)           Executive
shall be paid a signing bonus in accordance with the terms of the Signing Bonus
Agreement (the “Signing Bonus Agreement”) entered into the date hereof between
the Company and the Executive.

 

(c)           Restricted
Stock.  In connection with the
Executive’s appointment as President and Chief Executive Officer, the Company
shall grant to the Executive 875,000 shares (the “Restricted Stock”) of the
common stock of the Company as a Restricted Stock grant under the Company’s
Stock Incentive Plan, as amended from time to time (the “Plan”).  Twenty-five percent (25%) of the shares of
Restricted Stock shall vest on each of the first, second, third and fourth
anniversaries of the date of grant, provided that the Executive is still
employed by the Company on each such date. 
The Restricted Stock granted to the Executive under this Agreement shall
be subject to the Plan, to any applicable restricted stock certificate,
restricted stock agreement or shareholder agreement and to such other
restrictions as are generally applicable to restricted stock grants to
employees of the Company, as in effect from time to time. The grant of the
Restricted Stock to the Executive is subject to the Executive signing an
acknowledgment of the terms of the applicable restricted stock agreement and
the Plan. The Executive shall not be eligible to receive any stock options,
restricted stock or other equity of the Company, whether under an equity
incentive plan or otherwise, except as expressly provided in this Agreement or
as otherwise expressly authorized for him individually by the Board or the
Compensation Committee.

 

(d)           Stock
Options. In connection with the Executive’s appointment as President and
Chief Executive Officer, the Company shall grant to the Executive an option
(the “Option”) to purchase 1,125,000 shares of the common stock of the Company
at an exercise price per share equal to the Fair Market Value (as defined in
the Plan) on the date of grant. Twenty-five percent (25%) of the shares which
are subject to the Option shall become exercisable on the first anniversary of
the date of grant, provided that the Executive is still employed by the Company
on such date. Thereafter, 1/48th of the of the shares which are subject to the
Option shall 

 

3

 

vest and become exercisable monthly, provided that the Executive is
still employed by the Company on each such date. The stock options granted to the
Executive under this Agreement shall be subject to the Plan, to any applicable
stock option certificate, stock option agreement or shareholder agreement and
to such other restrictions as are generally applicable to stock options issued
to employees of the Company, as in effect from time to time. The grant of the
Option to the Executive is subject to the Executive signing an acknowledgment
of the terms of the applicable stock option agreement and the Plan. The
Executive shall not be eligible to receive any stock options, restricted stock
or other equity of the Company, whether under an equity incentive plan or
otherwise, except as expressly provided in this Agreement or as otherwise
expressly authorized for him individually by the Board or the Compensation
Committee.

 

(e)           Vacations.
The Executive shall be entitled to four (4) weeks of vacation per year, to
be taken at such times and intervals as shall be determined by the Executive,
subject to the reasonable business needs of the Company. In addition, the
Executive shall be entitled to up to two (2) weeks of unpaid vacation
during the Transition Period (as defined below).  Vacation shall otherwise be governed by the
policies of the Company, as in effect from time to time.

 

(f)            Other
Benefits. During the term hereof and subject to any contribution therefor
generally required of executives of the Company, the Executive shall be
entitled to participate in any and all employee benefit plans from time to time
in effect for senior executives of the Company generally, except to the extent
such plans are in a category of benefit otherwise provided to the Executive
under this Agreement (e.g.,
severance pay). Such participation shall be subject to the terms of the
applicable plan documents and generally applicable Company policies.

 

(g)           Business
Expenses. The Company shall pay or reimburse the Executive for all
reasonable customary business expenses incurred or paid by the Executive in the
performance of his duties and responsibilities hereunder, subject to
restrictions on such expenses set by the Board and to such reasonable
substantiation and documentation as may be specified by the Company from time
to time.

 

(h)           Attorneys’
Fees.  The Company shall pay or
reimburse the Executive for all reasonable attorneys’ fees and costs incurred
in connection with the negotiation of this Agreement, not to exceed $5,000.

 

(i)            Relocation
Expense Reimbursement.  The Company
will reimburse Executive, upon Executive’s providing reasonable documentation
thereof, for the following actual reasonable costs incurred by Executive in
connection with Executive’s relocation to the San Francisco, California bay
area:

 

4

 

(i)            Temporary
housing expenses for the Executive from the Effective Date through the earlier
of (A) June 30, 2008, or (B) the date the Executive establishes
a new residence in the San Francisco Bay area (the “Transition Period”);

 

(ii)           Reimbursement
in accordance with the Company’s travel policy for reasonable expenses incurred
by the Executive during the Transition Period in connection with his travel
from his current primary residence in Massachusetts to the Company’s San
Francisco office or to other locations necessitated by his duties under this
Agreement;

 

(iii)          Payment of normal real estate commissions
(not to exceed 6%) and normal closing costs incurred by Executive in connection
with the sale by Executive of his current primary residence;

 

(iv)          Travel
expenses for up to two (2) trips for Executive and his spouse to the San
Francisco, California bay area to search for a new primary residence;

 

(v)           Advance
purchase coach airfare for Executive and his family to travel to San Francisco,
California upon moving;

 

(vi)          Until
the earlier of (i) 60 days following sale of Executive’s Massachusetts
residence or (ii) December 31, 2008, temporary housing expenses for
Executive and his family;

 

(vii)         Normal costs for moving Executive’s household
goods and up to two (2) automobiles to the San Francisco, California bay
area from his current primary residence (excluding the costs of moving any
unusual items such as pianos, home gymnasium equipment, etc.); and

 

(viii)        Up to $6,000 for ancillary costs associated
with such relocation.

 

In addition to
the reimbursement of the relocation expenses described above, Executive shall
be entitled to receive from the Company an additional payment in an amount
sufficient to indemnify him on a net after-tax basis for any income tax
associated with such reimbursements.  All
sums paid pursuant to this Section 4(i) must be repaid to the Company
in the event the Executive terminates his employment other than for Good Reason
(as defined in Section 5 below) within twelve (12) months of the Effective
Date.

 

5.             Termination
of Employment and Severance Benefits. This Agreement and the Executive’s
employment hereunder shall terminate under the following circumstances:

 

5

 

(a)           Death.
In the event of the Executive’s death during the term hereof, the Executive’s
employment hereunder shall immediately and automatically terminate. In such
event, the Company shall pay to the Executive’s designated beneficiary or, if
no beneficiary has been designated by the Executive, to his estate, (i) the
Base Salary earned but not paid through the date of termination, (ii) pay
for any vacation time earned but not used through the date of termination, (iii) any
Annual Bonus awarded for the year preceding that in which termination occurs
but unpaid on the date of termination; (iv) a pro-rated Annual Bonus for
year in which the termination occurs; and (v) any business expenses
incurred by the Executive but un-reimbursed on the date of termination,
provided that such expenses and required substantiation and documentation are
submitted within ninety (90) days of termination and that such expenses are
reimbursable under Company policy (all of the foregoing, “Final Compensation”).  In addition, the Company shall pay to the
Executive any Signing Bonus owed under the terms of the Signing Bonus Agreement.

 

(b)           Disability.

 

(i)            The
Company may terminate the Executive’s employment hereunder, upon notice to the
Executive, in the event that the Executive becomes disabled during his
employment hereunder through any illness, injury, accident or condition of
either a physical or psychological nature and, as a result, is unable to
perform substantially all of his duties and responsibilities hereunder for one
hundred and eighty (180) days during any period of three hundred and sixty-five
(365) consecutive calendar days. In the event of such termination, the Company
shall have no further obligation to the Executive, other than for payment of
Final Compensation and Severance Pay and Medical Benefits, as defined below,
and any obligations under the Signing Bonus Agreement.

 

(ii)           The
Board may designate another employee to act in the Executive’s place during any
period of the Executive’s disability. Regardless of whether the Board makes any
such designation, the Executive shall continue to receive all compensation set
forth in Section 4 during the period of any disability, until the
termination of his employment in accordance with this Agreement.  If, during any such disability period, the
Executive also receives disability income payments under the Company’s
disability income plan, the Company shall be entitled to subtract such amounts
from the Base Salary paid to the Executive during such disability period.

 

(iii)          If any question shall arise as to whether
during any period the Executive is disabled through any illness, injury,
accident or condition of either a physical or psychological nature so as to be
unable to perform substantially all of his duties and responsibilities 

 

6

 

hereunder, the Executive may, and at the request of the Company shall,
submit to a medical examination by a physician selected by the Company to whom
the Executive or his duly appointed guardian, if any, has no reasonable
objection to determine whether the Executive is so disabled and such
determination shall for the purposes of this Agreement be conclusive of the
issue. If such question shall arise and the Executive shall fail to submit to
such medical examination, the Company’s determination of the issue shall be
binding on the Executive.

 

(c)           By
the Company for Cause. The Company may terminate the Executive’s employment
hereunder for Cause at any time upon notice to the Executive setting forth in
reasonable detail the nature of such Cause. The following, as determined by the
Board in its reasonable judgment, shall constitute Cause for termination:

 

(i)            The
Executive’s failure to perform (other than by reason of disability), or serious
negligence in the performance of, his material duties and responsibilities to
the Company or any of its Affiliates; provided that (A) this provision
shall not apply to mere dissatisfaction with Executive’s performance or his
failure to achieve particular objectives or goals, and (B) this provision
shall only constitute “Cause” where the Company has previously provided the
Executive with reasonably detailed written notice of his alleged failure or
negligence which the Executive fails to cure within seven (7) days of
receipt of that notice;

 

(ii)           Material
breach of Section 7, 8 or 9 hereof or breach of any fiduciary duty owed to
the Company or any of its Affiliates:

 

(iii)          Fraud or embezzlement or other dishonesty
which is material (monetarily or otherwise) with respect to the Company or any
of its Affiliates; or

 

(iv)          Indictment,
conviction or plea of nolo contendere to a felony or other crime involving
moral turpitude.

 

Upon
termination of the Executive’s employment for Cause, the Company shall pay the
Executive the Final Compensation, but excluding any pro-rated Annual Bonus for the
calendar year in which the termination occurs, and other than such payment the Company
shall have no further obligation to the Executive.

 

(d)           By
the Company Other than for Cause. The Company may terminate the Executive’s
employment hereunder other than for Cause at any time upon notice to the
Executive. In the event of such termination, in addition to 

 

7

 

Final Compensation and all obligations under the Signing Bonus
Agreement, the Company shall provide the Executive severance pay equal to the
sum of the Base Salary at the rate in effect on the date of termination and the
Target Bonus (“Severance Pay”), payable in approximately equal installments at
the Company’s regular paydays for its executives during the period from the
date of termination through the one-year anniversary thereof (the “Severance
Period”); provided, however, that if required pursuant to Section 409A of
the Internal Revenue Code of 1986, as amended (“Section 409A”), the timing
of such payments shall be adjusted as necessary to comply with Section 409A.
For the duration of the Severance Period, the Company shall also continue to
pay the Executive that portion of the premiums towards his family health and
dental insurance policies that it was paying to him immediately prior to his
termination (the “Medical Benefits”).  In
addition, on the date of termination, the Company will cause to become vested
that portion of the Option and Restricted Shares which would have vested by
passage of time during the period from the date of termination through the
one-year anniversary thereof, had the Executive remained in the employ of the
Company during that period (the “Accelerated Shares”).  The Severance Pay, Medical Benefits and
Accelerated Shares shall hereinafter be referred to as the “Severance Benefits.”
Any obligation of the Company to pay the Severance Benefits is conditioned,
however, on the Executive timely signing a release of claims in the form
attached hereto as Attachment A (the “Employee Release”). The first installment of the Severance Pay shall be due
and payable at the Company’s next regular payday which is at least five
business days following the later of the effective date of the Employee Release
or the date the Employee Release, signed by the Executive, is received by the
Company, but shall be retroactive to the next business day following the date
of termination; provided, however, that if required by Section 409A, the
first installment of the Severance Pay shall be due and payable at the Company’s
first regular payday as permitted pursuant to Section 409A. Also, although
vested on the date of termination, the Accelerated Shares shall not be
exercisable until the later of the effective date of the Employee Release or
the date the Employee Release, signed by the Executive, is received by the
Company.

 

(e)           By
the Executive for Good Reason. The Executive may terminate his employment
hereunder for Good Reason, at any time upon notice to the Company setting forth
in reasonable detail the nature of such Good Reason. The following shall
constitute Good Reason for termination by the Executive:

 

(i)            Any
material changes in the Executive’s title, duties, position, responsibilities
or reporting relationships, where the Executive has previously provided the
Company with detailed written notice of such change(s) which the Company
failed to cure within sixty (60) days of receipt of that notice; provided,
however, that the failure of 

 

8

 

the Executive to be elected to the Board or the failure of the Company to
continue the Executive’s appointment or election as a director or officer of
any of its Affiliates shall not constitute “Good Reason;”

 

(ii)           Any
requirement by the Company that the Executive relocate to an office location
that is more than fifty (50) miles from his then-current regular office
location (it being understood that as of the Effective Date, the office
location is the Company’s offices in San Francisco, California); and

 

(iii)          Failure of the Company to provide the
Executive cash compensation and benefits in accordance with the terms of Section 4
hereof or under the Signing Bonus Agreement, excluding any failure which is
cured within ten (10) business days following notice from the Executive
specifying in detail the nature of such failure.

 

In the event
of termination in accordance with this Section 5(e), the Executive will be
entitled to the Final Compensation, any payments owed to him under the Signing
Bonus Agreement, and the Severance Benefits set forth in Section 5(d) above;
provided that the Executive timely signs the Employee Release.

 

(f)            By
the Executive Other than for Good Reason. The Executive may terminate his
employment hereunder at any time other than for Good Reason upon sixty (60)
days’ notice to the Company; provided, however, that the Company may elect to
waive all or any portion of such notice, in which event the Company will pay
the Executive the Base Salary for any portion of the first sixty (60) days of
such notice waived. Upon termination by the Executive of his employment other
than for Good Reason, the Company shall pay the Executive the Final
Compensation, but excluding any pro-rated Annual Bonus for the calendar year in
which the termination occurs, and other than such payment the Company shall
have no further obligation to the Executive.

 

(g)           Expiration
of the Term Hereof.  The Executive’s
employment shall terminate upon the expiration of the term hereof following
appropriate notice by either party in accordance with Section 2.  In the event of such expiration as a result
of the Company giving such notice of non-renewal, the Executive will be
entitled to the Final Compensation, any payments owed to him under the Signing
Bonus Agreement, and the Severance Benefits set forth in Section 5(d) above;
provided that the Executive timely signs the Employee Release.  In the event of such expiration as a result
of the Executive giving such notice of non-renewal, the Executive will be
entitled to the Final Compensation, but excluding any pro-rated 

 

9

 

Annual Bonus for the calendar year in which the termination occurs, and
other than such payment the Company shall have no further obligation to the
Executive.

 

(h)           Upon
a Change of Control. If a Change of Control occurs and the Executive does
not resign without Good Reason and is not terminated with Cause during the
six-month period following the Change in Control:

 

(i)            any
and all Options and Restricted Shares that have not yet become vested and
exercisable shall, without any further action by the Company, the Board of Directors
or the Compensation Committee, accelerate and become vested and exercisable six
(6) months following the date of such Change of Control; and

 

(ii)           any
and all unpaid portions of the Signing Bonus shall immediately become due and
payable to the Executive six (6) months following the date of such Change
in Control.

 

In addition, if
the Executive’s employment is terminated by the Company (or its successor or
assign) for any reason other than for Cause, or if the Executive resigns for
Good Reason, during the six (6) month period following a Change of
Control:

 

(A)          all
outstanding unvested Options and Restricted Shares granted under this Agreement
shall immediately vest and become exercisable upon termination; and

 

(B)           the
Company (or its successor or assign) shall pay to the Executive the Final
Compensation, any compensation owed to him under the Signing Bonus Agreement,
Severance Pay and Medical Benefits set forth in Section 5 (d) herein.

 

For the
purposes of this Agreement, Change of Control shall mean (i) the sale or
transfer of all or substantially all of the Company’s assets, (ii) a
reorganization, recapitalization, consolidation or merger where the voting
securities of the Company outstanding immediately preceding such transaction,
or the voting securities issued in exchange for or with respect to the voting
securities of the Company outstanding immediately preceding such transaction,
represent 50% or less of the voting power of the surviving entity following the
transaction, or (iii) a transaction or series of related transactions
which results in the acquisition of more than 50% of the Company’s outstanding
voting power by a single person or entity or by a group of persons and/or
entities acting in concert; provided, that a transaction principally for the
purpose of reorganizing the Company into a holding company structure or
reincorporating the Company in another jurisdiction shall not constitute a “Change
of Control.” Notwithstanding the foregoing, to the extent necessary to comply
with 

 

10

 

Section 409A,
in the case of any payment under this Agreement that in the determination of
the Company would be considered “nonqualified deferred compensation” subject to
Section 409A and as to which, in the determination of the Company, the
requirements of Section 409A(a)(2)(A)(v) would apply, an event or
occurrence described above shall be considered a “Change of Control” only if it
also constitutes a change in ownership or effective control of the Company, or
a change in ownership of the Company’s assets, described in Section 409A(a)(2)(A)(v).

 

6.                                       Effect
of Termination. The provisions of this Section 6 shall apply to any
termination pursuant to Section 5.

 

(a)                                 Except
as otherwise agreed to by the parties in writing, payment by the Company of any
amounts that may be due the Executive in each case under the applicable
termination provision of Section 5 and, if applicable, under the Signing
Bonus Agreement, shall constitute the entire obligation of the Company to the
Executive, except as required by law.

 

(b)                                Except
as otherwise provided for herein or for any right to continue participation in
the Company’s group health or dental plan at the Executive’s cost under COBRA
or other applicable law, the Executive’s participation in Company benefits
shall terminate pursuant to the terms of the applicable benefit plans based on
the date of termination of the Executive’s employment, without regard to any
continuation of Base Salary or other payment to the Executive following such
date of termination.

 

(c)                                 Provisions
of this Agreement shall survive any termination if so provided herein or if
necessary or desirable to accomplish the purposes of other surviving
provisions, including without limitation the obligations of the Executive under
Sections 7, 8 and 9 hereof. The obligations of the Company under Sections 5(d),
5(e), 5(f), 5(g) and 5(h) hereof are expressly conditioned upon the
Executive’s continued full performance of obligations under Sections 7, 8 and 9
hereof. The Executive recognizes that, except as expressly provided in Section 5(d) or
5(e) or 5(f), no compensation is earned after termination of employment.

 

7.                                       Confidential
Information.

 

(a)                                 The
Executive acknowledges that the Company and its Affiliates continually develop
Confidential Information; that the Executive may develop Confidential
Information for the Company and its Affiliates; and that the Executive may
learn of Confidential Information during the course of employment. The
Executive will comply with the policies and procedures of the Company and its Affiliates
for protecting Confidential Information and shall not disclose to any Person or
use, other than as 

 

11

 

required by applicable law or for the proper performance of his duties
and responsibilities to the Company and its Affiliates, any Confidential
Information obtained by the Executive incident to his employment or other
association with the Company or any of its Affiliates. The Executive
understands that this restriction shall continue to apply after his employment
terminates, regardless of the reason for such termination, for a period of
three (3) years. Further, the Executive agrees to provide prompt notice to
the Company of any required disclosure of Confidential Information sought
pursuant to subpoena, court order or any other legal requirement and to provide
the Company a reasonable opportunity to seek protection of the Confidential
Information prior to any such disclosure.

 

(b)                                All
documents, records, tapes and other media of every kind and description
relating to the business, present or otherwise, of the Company or any of its
Affiliates and any copies, in whole or in part, thereof (the “Documents”),
whether or not prepared by the Executive, shall be the sole and exclusive
property of the Company and its Affiliates. The Executive shall safeguard all
Documents and shall surrender to the Company at the time his employment
terminates, or at such earlier time or times as the Board or its designee may
specify, all Documents then in the Executive’s possession or control.

 

8.                                      Assignment
of Rights to Intellectual Property. The Executive agrees to maintain
accurate and complete contemporaneous records of, and shall immediately and
fully disclose and deliver to the Company, all Intellectual Property, as
defined below. The Executive hereby assigns and agrees to assign to the Company
(or as otherwise directed by the Company) his full right, title and interest in
and to all Intellectual Property. The Executive agrees to execute any and all
applications for domestic and foreign patents, copyrights and other proprietary
rights and do such other acts (including, among others, the execution and
delivery of instruments of further assurance or confirmation) requested by the
Company to assign the Intellectual Property to the Company and to permit the
Company to enforce any patents, copyrights and other proprietary rights in the
Intellectual Property. The Executive will not charge the Company for time spent
in complying with these obligations. All copyrightable works that the Executive
creates shall be considered “work made for hire” and shall, upon creation, be
owned exclusively by the Company.

 

9.                                      Restricted
Activities. The Executive agrees that some restrictions on his activities
during and after his employment are necessary to protect the goodwill,
Confidential Information and other legitimate interests of the Company and its
Affiliates:

 

(a)                                 While
the Executive is employed by the Company and for the twelve months immediately
following termination of his employment (in the aggregate, the “Non-Competition
Period”), the Executive shall not, directly or indirectly, whether as owner,
partner, investor, consultant, 

 

12

 

agent, employee, co-venturer or otherwise, engage in any activity that
competes directly with the Business of the Company or any of its Serviced
Affiliates within any area of the United States covered by the Company’s
spectrum licenses (the “Restricted Area”). 
For the purposes of this Section 9, “Business” means the provision
of backhaul services to wireless communications providers in the United States.  For purposes of this Agreement, “Serviced
Affiliates” means those Affiliates of the Company for which the Executive has
provided services or as to which he has had access to Confidential Information.

 

(b)                                The
Executive agrees that, except as set forth in Section 3(c) hereof,
during his employment with the Company, he will not undertake any outside
activity, whether or not competitive with the business of the Company or its
Subsidiaries, that could reasonably be expected to give rise to a conflict of
interest or otherwise interfere with his duties and obligations to the Company
or any of its Affiliates.

 

(c)                                 The
Executive further agrees that during the Non-Competition Period, the Executive
will not hire or attempt to hire any employee of the Company or any of its
Serviced Affiliates, assist in such hiring by any person, or encourage any such
employee to terminate his or her relationship with the Company or any of its
Serviced Affiliates; provided, however, that the foregoing will not apply to
any employee that has (i) voluntarily terminated his or her employment
relationship with the Company or any of its Serviced Affiliates, as applicable,
at least six months prior to the date on which the Executive’s employment
relationship with the Company is terminated or (ii) involuntarily
terminated his or her employment relationship with the Company or any of its
Serviced Affiliates, as applicable, at any time.  The Executive further agrees that during the
Non-Competition Period, the Executive will not solicit any known customer or
vendor of the Company or any of its Serviced Affiliates to terminate or
diminish its relationship with them, or, in the case of such a customer, to
conduct with any Person any business or activity which Executive knows such
customer was conducting with the Company or any of its Serviced Affiliates
immediately prior to Executive’s departure.

 

10.                                Enforcement
of Covenants. The Executive acknowledges that he has carefully read and
considered all the terms and conditions of this Agreement, including the
restraints imposed upon him pursuant to Sections 7, 8 and 9 hereof. The
Executive agrees that those restraints are necessary for the reasonable and proper
protection of the Company and its Affiliates and that each and every one of the
restraints is reasonable in respect to subject matter, length of time and
geographic area. The Executive further acknowledges that any breach of any of
the covenants contained in Sections 7, 8 or 9 hereof could result in
irreparable harm to the Company. The Executive therefore agrees that the
Company, in addition to any other remedies available to it, shall be entitled
to preliminary and permanent injunctive relief against any breach or threatened
breach by the Executive of any 

 

13

 

of said covenants, without having to post bond. The parties further
agree that, in the event that any provision of Section 7, 8 or 9 hereof
shall be determined by a court of competent jurisdiction to be unenforceable by
reason of its being extended over too great a time, too large a geographic area
or too great a range of activities, such provision shall be deemed to be
modified to permit its enforcement to the maximum extent permitted by law.

 

11.                                Conflicting
Agreements. The Executive hereby represents and warrants that the execution
of this Agreement and the performance of his obligations hereunder will not
breach or be in conflict with any other agreement to which the Executive is a
party or is bound and that the Executive is not now subject to any covenants
against competition or similar covenants or any court order or other legal
obligation that would affect the performance of his obligations hereunder. The
Executive will not disclose to or use on behalf of the Company any proprietary
information of a third party without such party’s consent.

 

12.                                 Definitions.
Words or phrases which are initially capitalized or are within quotation marks
shall have the meanings provided in this Section and as provided elsewhere
herein. For purposes of this Agreement, the following definitions apply:

 

(a)                                 “Affiliates”
means (i) all subsidiaries of the Company, and (ii) any Person
holding all or substantially all of the voting power of the Company.

 

(b)                                “Confidential
Information” means any and all trade secrets and confidential or proprietary
information of the Company and its Affiliates. Confidential Information
includes without limitation such information relating to (i) the
development, research, testing, manufacturing, marketing and financial
activities of the Company and its Affiliates, (ii) their products and
services, (iii) the costs, sources of supply, financial performance and
strategic plans of the Company and its Affiliates, (iv) the identity and
special needs of the customers of the Company and its Affiliates and (v) the
people and organizations with whom the Company and its Affiliates have business
relationships and the nature and substance of those relationships. Confidential
Information also includes any information that the Company or any of its
Affiliates has received, or may receive hereafter, belonging to customers or
others with any understanding, express or implied, that the information would
not be disclosed.  Confidential
Information shall not include any information that (A) is in or enters the
public domain without any fault on the part of the Executive, or (B) was
in the possession of the Executive prior to the Effective Date of this
Agreement.

 

(c)                                 “Intellectual
Property” means any invention, formula, process, discovery, development,
design, innovation or improvement (whether or not patentable or registrable
under copyright statutes) made, conceived, or first actually reduced to
practice by the Executive solely or jointly with 

 

14

 

others, during his employment by the Company; provided, however, that,
as used in this Agreement, the term “Intellectual Property” shall not apply to
any invention that the Executive develops on his own time, without using the
equipment, supplies, facilities or trade secret information of the Company,
unless such invention relates at the time of conception or reduction to
practice of the invention (a) to the business of the Company, (b) to
the actual or demonstrably anticipated research or development of the Company
or (c) results from any work performed by the Executive for the Company.

 

(d)                                “Person”
means an individual, a corporation, a limited liability company, an association,
a partnership, an estate, a trust and any other entity or organization, other
than the Company or any of its Affiliates.

 

13.                                Withholding.
All payments made by the Company under this Agreement shall be reduced by any
tax or other amounts required to be withheld by the Company under applicable
law.

 

14.                                Assignment.
Neither the Company nor the Executive may make any assignment of this Agreement
or any interest herein, by operation of law or otherwise, without the prior
written consent of the other; provided, however, that the Company may assign
its rights and obligations under this Agreement without the consent of the
Executive in the event that the Company shall hereafter affect a
reorganization, consolidate with, or merge into, any Person or transfer all or
substantially all of its properties or assets to any Person. This Agreement
shall inure to the benefit of and be binding upon the Company and the
Executive, their respective successors, executors, administrators, heirs and
permitted assigns.

 

15.                                Severability.
If any portion or provision of this Agreement shall to any extent be declared
illegal or unenforceable by a court of competent jurisdiction, then the
remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or
unenforceable, shall not be affected thereby, and each portion and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted
by law.

 

16.                                Waiver.
No waiver of any provision hereof shall be effective unless made in writing and
signed by the waiving party. The failure of either party to require the
performance of any term or obligation of this Agreement, or the waiver by
either party of any breach of this Agreement, shall not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.

 

17.                                Notices.
Any and all notices, requests, demands and other communications provided for by
this Agreement shall be in writing and shall be effective when delivered in
person, consigned to a reputable national delivery service or deposited in the
United States mail, postage prepaid, registered or certified, and 

 

15

 

addressed to the Executive at his last known address on the books of
the Company or, in the case of the Company, at its principal place of business,
attention of the Chair of the Board, or to such other address as either party
may specify by notice to the other actually received.

 

18.                                Entire
Agreement. This Agreement and the Signing Bonus Agreement constitute the
entire agreement between the parties and supersede all prior communications,
agreements and understandings, written or oral, with respect to the terms and
conditions of the Executive’s employment.

 

19.                                Amendment.
This Agreement may be amended or modified only by a written instrument signed
by the Executive and by an expressly authorized representative of the Company.

 

20.                                Headings.
The headings and captions in this Agreement are for convenience only and in no
way define or describe the scope or content of any provision of this Agreement.

 

21.                                Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall
be an original and all of which together shall constitute one and the same
instrument.

 

22.                                Governing
Law. This Agreement shall be construed and enforced under and be governed
in all respects by the laws of Delaware without regard to the conflict of laws
principles thereof.

 

23.                                Consent
to Jurisdiction. Each of the parties agrees that all actions, suits or
proceedings arising out of or based upon this Agreement or the subject matter
hereof shall be brought and maintained in any state or federal court in or of
the State of Delaware; provided, however, that the Company also
may bring any such action, suit or proceeding against the Executive in any
other jurisdiction in which the Executive is subject to personal jurisdiction.
Each of the parties hereto by execution hereof (i) hereby irrevocably
submits to such jurisdiction for the purpose of any action, suit or proceeding
arising out of or based upon this Agreement or the subject matter hereof and (ii) hereby
waives to the extent not prohibited by applicable law, and agrees not to
assert, by way of motion, as a defense or otherwise, in any such action, suit
or proceeding, any claim that he or it is not subject personally to the
jurisdiction of the above-named courts; that he or it is immune from
extraterritorial injunctive relief or other injunctive relief; that his or its
property is exempt or immune from attachment or execution; that any such
action, suit or proceeding may not be brought or maintained in one of the
above-named courts; that any such action, suit or proceeding brought or
maintained in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be
transferred to any court other than one of the above-named courts, should be
stayed by virtue of the pendency of any other action, suit or proceeding in any
court other than one of the above-named courts, or that this Agreement or the
subject matter hereof may not be enforced in or by any of the 

 

16

 

above-named courts. Each of the parties hereto hereby consents to service
of process in any such suit, action or proceeding in any manner permitted by
the laws of the State of Delaware or such other jurisdiction in which the
Company may bring an action hereunder; agrees that service of process by
registered or certified mail, return receipt requested, at the address
specified in or pursuant to Section 17 is reasonably calculated to give
actual notice; and waives and agrees not to assert by way of motion, as a
defense or otherwise, in any such action, suit or proceeding any claim that
service of process made in accordance with Section 17 does not constitute
good and sufficient service of process. The provisions of this Section 23
shall not restrict the ability of any party to enforce in any court any
judgment obtained in a federal or state court of the State of Delaware.

 

24.                                Attorneys
Fees.  In the event that either party
initiates legal proceedings to enforce its rights hereunder or under the
Signing Bonus Agreement, the prevailing party in such legal proceedings shall
be entitled to recover from the other party, in addition to any other damages
or remedies to which such party is entitled, the reasonable legal fees of such
prevailing party incurred in connection with such legal proceedings.

 

[Signature page immediately follows.]

 

17

 

IN WITNESS
WHEREOF, this Agreement has been executed as a sealed instrument by the
Company, by its duly authorized representative, and by the Executive, as of the
date first above written.

 

	
   

  	
   

  	
   

  
	
  THE
  EXECUTIVE:

  	
   

  	
  FIBERTOWER
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kurt J. Van Wagenen

  	
   

  	
  By:

  	
  /s/ John D. Beletic

  
	
  Kurt
  J. Van Wagenen

  	
   

  	
   

  	
  John
  D. Beletic

  
	
   

  	
   

  	
   

  	
  Chairman
  of the Board

  

 

18

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