Document:

EXHIBIT 10.42
                                                                   -------------

                               SECURITY AGREEMENT

                  SECURITY AGREEMENT ("Agreement") made this 15th day of
September, 2000 by and between TOWER TECH, INC., an Oklahoma corporation
("Pledgor"), with an address at 11935 South I-44 Service, Oklahoma City 73173
and Taglich Brothers, Inc., as collateral agent (the"Pledgee") with an address
at 1370 Avenue of the Americas, New York, New York 10019.

                              W I T N E S S E T H :
                              ---------------------

                  WHEREAS, Pledgee has entered into a letter agreement (the
"Loan Agreement") with Pledgee whereby Pledgee has agreed to use its best
efforts to locate third parties (collectively, the "Lenders") that will loan in
the aggregate up to $500,000 to Pledgor (the "Loan"); and

                  WHEREAS, the Loan will be made in one or more tranches from
the Lenders, with each tranche being evidenced by a separate promissory note
issued by the Pledgor to the Lender (each a "Note" and collectively, the
"Notes"), and concurrent with funding part of the Loan, each Lender will enter
into an agreement with Pledgee appointing Pledgee as collateral agent under this
Agreement; and

                  WHEREAS, to induce Lenders to make the Loan, Pledgor has
agreed to grant to Pledgee a security interest in all of its right, title and
interest in and to that certain license agreement, dated as of December 4, 1998
(the "License Agreement"), by and between Aggreko, Inc. ("Aggreko") and Pledgor,
including, without limitation, the right to receive all license, royalty and
other payments thereunder (hereinafter, collectively the "Pledged Interest"),
and Pledgor acknowledges that the Lenders would not make the Loan but for the
Pledgor delivering this Agreement.

                  NOW, THEREFORE, as an inducement to Lenders to make the Loan
and as a condition thereof, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by Pledgor, to secure
repayment of the Loan pursuant to the Notes and of all other obligations of
Pledgor to the Lenders under the Notes and this Agreement, including any costs
and expenses which may be incurred in connection with the enforcement of the
foregoing (including reasonable attorneys fees and legal costs and
disbursements) and the realization on the security provided for by this
Agreement, Pledgor hereby grants, bargains, sells, assigns, transfers and
pledges to Pledgee, its successors and assigns, and hereby gives to Pledgee, its
successors and assigns, a security interest in the Pledged Interests, together
with any and all proceeds thereof.

                  TO HAVE AND TO HOLD the Pledged Interests unto the Pledgee,
its

                                      -1-
<PAGE>

successors and assigns forever, provided, however, that upon repayment in full
of all amounts due under the Notes (including accrued interest and costs of
collection, if any) and this Agreement, this Agreement and the estate and rights
hereby granted shall be of no further force or effect and any and all Pledged
Interests held by the Pledgee or Pledgee's successors or assigns shall be
returned to Pledgor and Pledgee shall deliver all reasonably necessary documents
to Pledgor to confirm such discharge.

                  Pledgor hereby represents, warrant and covenant to Pledgee as
follows:

                  (a)  The execution, delivery and performance by Pledgor of
                       this Agreement and each of the Notes has been approved by
                       the board of directors of Pledgor and does not contravene
                       any restriction of any kind or character binding upon or
                       affecting Pledgor and, when delivered pursuant hereto, is
                       and will continue to be the legal, valid binding
                       obligation and undertaking of Pledgor, enforceable
                       against Pledgor in accordance with its terms;

                  (b)  The Pledged Interests have not been assigned,
                       transferred, or otherwise encumbered, except that the
                       Pledgor has previously granted a security interest in the
                       Pledged Interests to the People First Bank;

                  (c)  Pledgor will reimburse Pledgee promptly for any and all
                       expenditures which Pledgee may make (although Pledgee has
                       no obligation to make any expenditures) from time to time
                       to defend the security granted hereunder (in the event of
                       Pledgor's failure so to do), and any such payment made by
                       Pledgee shall be for the account of Pledgor and the
                       making thereof by Pledgee shall not cure Pledgor's
                       default or constitute a waiver of any right or remedy
                       granted to Pledgee hereunder, and all sums so expended by
                       Pledgee or any liability incurred by Pledgee shall be
                       deemed to be an indebtedness of Pledgor and secured by
                       this Agreement, and Pledgee is hereby irrevocably
                       authorized to reimburse itself for any such expenditures,
                       payments or sums, out of and from the money evidenced by
                       said Pledged Interests;

                  (d)  In the event this Agreement or the Notes shall be deemed
                       invalid in whole or in part by any present or future law
                       of the United States or of the State of New York or any
                       decision of any court, Pledgor will execute and deliver
                       such other and further instruments and do such things as
                       in the reasonable opinion of counsel for Pledgee, it
                       successors and assigns, will carry out the intent of this
                       Agreement. From time to time Pledgor will execute and
                       deliver such further documents and assurances as in the
                       reasonable opinion of counsel for Pledgee may be required
                       more effectively to secure the Pledgee with respect to
                       the Pledged Interests and the performance of each and all
                       the terms, covenants and conditions

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<PAGE>

                       of this Agreement to be performed in or observed by
                       Pledgor;

                  (e)  The Pledgor will promptly notify the Pledgee of the
                       imposition at any time of any lien, claim or encumbrance
                       upon any of the Pledged Interests and the Pledgor will
                       defend the Pledged Interests against all claims and
                       demands of all persons at any time claiming the same or
                       any interest therein adverse to the Pledgee;

                  (f)  Pledgor will keep accurate and complete books and records
                       concerning each item and category of the Pledged
                       Interests. Pledgor will furnish to the Pledgee, at such
                       times and in such form and substance as may be reasonably
                       requested, information adequate to enable the Pledgee to
                       identify the Pledged Interests and components thereof;

                  (g)  The principal place of business of the Pledgor is as
                       follows:

                           Tower Tech, Inc.
                           11935 South I-44 Service
                           Oklahoma City, Oklahoma 73173

                           Pledgor will not move its principal place of business
                           except to such new location as may be established in
                           accordance with subparagraph (i) below;

                  (h)  Pledgor's only original books of account and records
                       relating to the Pledged Interests are, and will continue
                       to be, kept at its principal place of business identified
                       in subparagraph (h) above. Pledgor will not permit any
                       original books of account or records concerning the
                       Pledged Interests or the principal place of business to
                       be located at any other address except such new locations
                       as it may establish in accordance with subparagraph (i)
                       below;

                  (i)  If Pledgor desires to establish a new location or
                       locations for its principal place of business or to
                       establish a new name or names in which it may invoice
                       account debtors or maintain records concerning the
                       Pledged Interests, then it shall first, with respect to
                       each such new location or name:

                                 (1) give Pledgee written notice of its
                           intention to do so and provide Pledgee with such
                           information in connection therewith as Pledgee may
                           reasonably request; and

                                 (2) take such action satisfactory to Pledgee as
                           may be necessary to maintain at all times the
                           perfection and priority of the security interest
                           granted to the Pledgee under this Agreement;

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<PAGE>

                  (j)  Pledgee shall have the right, at its cost and expense, at
                       any reasonable time from time to time and upon reasonable
                       notice to examine and make copies or extracts from the
                       books and records of the Pledgor concerning the Pledged
                       Interests; and

                  (k)  Pledgee may at any time, upon prior notice to Pledgor,
                       verify with Aggreko the status of, and anything relating
                       to, the License Agreement. Pledgor from time to time will
                       execute and deliver such instruments and take all such
                       action as Pledgee may reasonably request in order to
                       effectuate the purposes of this subparagraph (k).

                  (l)  The License Agreement is in full force and effect and has
                       not been terminated, superceded, modified, changed,
                       altered or amended in any manner, whether orally, in
                       writing, and/or by custom and practice. No event of
                       default exists under the License Agreement nor has any
                       event occurred which with notice and/or the passage of
                       time is likely to result in an event of default.

                  (m)  Throughout the entire term of the License Agreement up to
                       and including the date hereof, Pledgor has neither given
                       nor received any notice regarding a breach or default
                       under the License Agreement, and Pledgor is not aware of
                       any event that, by virtue of occurring or not occurring,
                       would give either party under the License Agreement the
                       right to provide such notice.

                  (n)  All payments previously due under the License Agreement
                       were paid on time and Pledgor knows of no reason why all
                       future payments under the License Agreement would not be
                       paid on time.

                  The occurrence of any of the following shall constitute an
event of default ("Event of Default") hereunder:

                  (a)  The failure to pay when due any and all sums of money due
                       under and of the Notes or any other default thereunder
                       and the continuance of such default for a period of ten
                       (10) days;

                  (b)  If any representation or warranty contained herein shall
                       prove to be inaccurate in any material respect;

                  (c)  If any of the covenants or agreements contained herein
                       are not complied with for a period of ten (10) days after
                       notice from Pledgee;

                  (d)  Any amendment of the certificate of incorporation of
                       Pledgor without Pledgee's prior written consent which
                       shall not be unreasonably

                                      -4-
<PAGE>

                       withheld, delayed or conditioned;

                  (e)  commencement of any proceeding, procedure, or remedy
                       supplementary to or in enforcement of any judgment for
                       the payment of money in excess of $10,000, issuance of
                       any writ or order of attachment or garnishment for the
                       payment of money in excess of $10,000, or the existence
                       of any other lien against or with respect to any property
                       of Pledgor other than liens existing the date hereof;

                  (f)  dissolution, liquidation or other termination of
                       existence, or adoption of any resolution for the
                       dissolution, liquidation or other termination of
                       existence, of Pledgor;

                  (g)  suspension of the usual business of Pledgor;

                  (h)  commission of any act of bankruptcy by or insolvency or
                       business failure of Pledgor, application for or
                       appointment of a trustee or receiver for Pledgor or of
                       any part of Pledgor's property, assignment for the
                       benefit of creditors by Pledgor, filing of a petition in
                       bankruptcy by or against Pledgor, or commencement by or
                       against Pledgor of any proceeding under any bankruptcy or
                       insolvency law or any other law relating to the relief of
                       debtors, readjustment of indebtedness, reorganization,
                       receivership, composition or extension;

                  (i)  making or sending notice of any intended bulk transfer by
                       Pledgor;

                  (j)  the acceleration against Pledgor of any obligation to pay
                       money under any agreement, instrument or arrangement
                       evidencing or securing indebtedness of Pledgor to Pledgee
                       or any other party; or

                  (k)  if an event of default occurs under any of the loan
                       documents between the People First Bank and the Company
                       and/or if the People First Bank exercises any of its
                       rights as to any of the Company's assets under any of the
                       documents between it and the Company.

then, and in every such case, unless the Event of Default shall have theretofore
been remedied, Pledgee may, upon ten (10) days prior notice, by its agent,
nominee or otherwise, in addition to all rights that it may have at law or in
equity, and without either demand, advertisement or further notice of any kind,
all of which are hereby waived, sell, assign or deliver all or any part of the
Pledged Interests at any public or private sale, as Pledgee may elect, either
for cash or on credit and for present or future delivery, in any one or more
sales and at such price or prices as Pledgee shall deem satisfactory, and in
connection therewith may grant options to buy all or any part of the Pledged
Interests. Upon such sale, Pledgee or nominees or parties designated by Pledgee,
may purchase and hold the same either as a whole or in part, free from any
rights of redemption on the part of Pledgor, which rights are hereby waived and
released.

                                      -5-
<PAGE>

Notwithstanding the above, Pledgee shall give to Pledgor five days written
notice of any sale and shall permit Pledgor to attend such sale. The Pledgee
shall transfer the Pledged Interests to the purchaser at such sale, and the
recitals in such transfer shall be prima facie evidence of the truth of the
matters therein stated and all prerequisites to such sale required hereunder and
under the laws of any applicable State shall be presumed to have been performed.
The purchaser at any such sale (whether it be Pledgee, a nominee, or any third
party or parties), shall thereafter hold such Pledged Interests thus purchased,
absolutely, free from any rights or claims of any kind of Pledgor. The Pledgee,
without notice or publication, may adjourn any public sale or cause it to be
adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may be made at any time or place to which the same may be so
adjourned. At any sale, Pledgee may pay part or all of the purchase price by
setting off against such price part or all of the obligations of Pledgor to
Pledgee. The cash proceeds of any sale after deducting all costs and expenses of
every kind for collection, sale, or delivery (including reasonable counsel fees
and disbursements, brokerage commissions, transfer fees and taxes), shall be
applied, without any marshalling of assets, to the payment of the Note and any
other amounts due to Pledgee, including accrued interest and costs of
collection. If there is any surplus after payment of such amounts, it will be
promptly forwarded to Pledgor or such other party as shall be entitled to
receive same. Any sale (or surrender) conducted upon the foregoing terms shall
be deemed commercially reasonable.

                  All rights of Pledgee with respect to the Pledged Interests
shall not be affected, impaired, released, terminated or discharged, in whole or
in part, by:

                  (a)  any amendment or modification of the Note or any other
                       instrument executed by Pledgor in relation to the
                       transactions described herein;

                  (b)  any extensions of time for performance of any of said
                       documents or under this Agreement;

                  (c)  any exchange, surrender or release, in whole or in part,
                       of any security which may be held by Pledgee at any time
                       for or under any of the instruments hereinabove referred
                       to;

                  (d)  any enforcement or failure to enforce any claims or
                       remedies which Pledgee may at any time have under this
                       Agreement or any of the aforementioned instruments; or

                  (e)  the compromise, release, waiver and/or adjustment of any
                       claim that Pledgee may have at any time against any
                       person, firm, corporation or entity, however the same may
                       be accomplished and whether made with or without notice
                       to Pledgor.

                  The Pledgee's rights hereunder shall not be affected or
impaired, in whole or in part, by reason of any invalidity of this Agreement or
any document referred to herein.

                                      -6-
<PAGE>

                  The Pledgee shall have all the rights and remedies of a
secured party under the New York Uniform Commercial Code, and be entitled to
avail itself of all such other rights or remedies as shall now or may hereafter
exist at law or in equity for the satisfaction of the obligations of Pledgor to
Pledgee and the foreclosure of the security interest created hereby, and resort
to any remedies provided hereunder or by the New York Uniform Commercial Code or
by any other law, and shall not prevent the concurrent employment of any other
appropriate remedy or remedies.

                  In any litigation or legal proceeding arising out of, or
relating to, this Agreement or the Pledged Interests, in which the Pledgee and
the undersigned shall be adverse parties, the undersigned waives the right to
interpose any defense, set-off or counterclaim of any kind not directly arising
herefrom or therefrom, as the case may be, and also waives the right to a trial
by jury.

                  This Agreement shall be construed and enforced in accordance
with the internal laws of the State of New York.

                  This Agreement may not be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party
against which enforcement of the change, waiver, discharge or termination is
sought. No delays on the part of Pledgee in exercising any power or right
hereunder shall operate as a waiver of any such power or right nor shall any
single or partial exercise of any such power or right exclude any further
exercise thereof.

                  Pledgor shall at any time or from time to time upon request of
Pledgee, at their own cost and expense, execute, deliver, file or record in such
manner as Pledgee may require, financing statements, security agreements, or
other instruments that may be necessary or reasonably desirable or that Pledgee
may reasonably request in order to create, preserve, or validate the security
interest hereby granted or to enable Pledgee to exercise and enforce its rights
hereunder. Upon the failure of Pledgor to comply promptly with any such request,
Pledgee is hereby authorized as the agent of Pledgor, and Pledgor hereby appoint
Pledgee as their attorney-in-fact to execute any such instrument on their
behalf. Pledgee shall not exercise said appointment so as to subject the Pledgor
to any personal liability contrary to the provisions of this Agreement and the
Note. Notwithstanding the foregoing, the Pledgee shall have no obligation to
comply with any recording, rerecording, filing, refiling or other legal
requirements necessary to establish or maintain the validity, priority or
enforceability of, or the Pledgee's right in or to, the Pledged Interests or any
part thereof.

                  From and after maturity (whether by acceleration or otherwise)
of any of the obligations secured hereby, any unpaid balance remaining shall
bear interest at the rate of twenty (20%) percent per annum. Anything in this
Agreement or any other agreement, instrument or document to the contrary
notwithstanding, in no event shall interest on any obligation exceed the maximum
rate permitted under any applicable law or regulation, and if any provision of
this Agreement or any other agreement, instrument or document is in
contravention of any such law or regulation, such provision shall be deemed
amended to

                                      -7-
<PAGE>

provide for interest at said maximum rate.

                  Pledgor agrees that the refusal of Pledgee to permit any
person to bid for and to buy the Pledged Interests, or any part thereof, at any
sale thereof, shall be commercially reasonable if Pledgee is of the reasonable
opinion that an offer or sale to any such person cannot comply with any and all
requirements of applicable state and federal securities laws.

                                      -8-
<PAGE>

                  All notices and other communications required or permitted
hereunder, shall be in writing and personally delivered or, if mailed, shall be
deemed to be given on the third business day after the date when deposited in
the United States mail, by registered or certified mail, postage prepaid,
addressed as follows:

            If to Pledgor:            11935 South I-44 Service
                                      Oklahoma City, Oklahoma 73173

            If to Pledgee:            Michael Taglich
                                      1370 Avenue of the Americas
                                      New York, New York 10019
                                      Attn: Michael Taglich, President

or to such other person or address as either party shall designate by written
notice in like manner to the other.

            This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective personal representatives, successors and
permitted assigns.

            Pledgor agrees to pay all costs and expenses, including reasonable
attorneys fees and disbursements incurred by Pledgee in enforcing its rights
hereunder.

            IN WITNESS WHEREOF, Pledgor have caused this Agreement to be duly
executed and delivered as of the date first above written.

                                             TOWER TECH, INC.

                                             By: /s/ Robert C. Brink
                                                ------------------------------
                                             Name: Robert C. Brink
                                                  ----------------------------
                                             Title: President
                                                   ---------------------------

                                             TAGLICH BROTHERS, INC.
                                             as collateral agent

STATE OF       ) Oklahoma                    By: /s/ Michael Taglich
               )ss:                             ------------------------------
COUNTY OF      ) Cleveland                   Name: Michael Taglich
                                                  ----------------------------
                                             Title: President

         On the __ day of September, 2000, before me personally came Robert C.
Brink, being by me duly sworn, did depose and say that he resides at No. Okla.
City, Oklahoma; that he is the President of TOWER TECH, INC., the corporation
described in and which executed the foregoing instrument; and that he signed
thereto by order of the board of

                                      -9-
<PAGE>

directors of said corporation.

                                        /s/ Patty Lewis Paog
                                       ----------------------
                                           Notary Public

My Commission Expires 3-9-2002.

                                      -10-EXHIBIT 10.43
                                                                   -------------

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED ("1933 ACT") OR ANY STATE SECURITIES
         LAWS AND SHALL NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR
         OTHERWISE TRANSFERRED, WHETHER OR NOT FOR CONSIDERATION, BY THE HOLDER
         EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS
         COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY
         BE SATISFACTORY TO COUNSEL FOR THE COMPANY, IN EITHER CASE, TO THE
         EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE 1933 ACT
         AND APPLICABLE STATE SECURITIES LAWS.

                                TOWER TECH, INC.

                          Common Stock Purchase Warrant
                                       to
                             Purchase 100,000 Shares
                                       of
                                  Common Stock

                This Common Stock Purchase Warrant is issued to:

                             Taglich Brothers, Inc.
                           1370 Avenue of the Americas
                               New York, NY 10019

by TOWER TECH, INC., an Oklahoma corporation (hereinafter called the "Company,"
which term shall include its successors and assigns).

         FOR VALUE RECEIVED and subject to the terms and conditions hereinafter
set out, the registered holder of this Warrant as set forth on the books and
records of the Company (the "Holder") is entitled upon surrender of this Warrant
to purchase from the Company 100,000 fully paid and nonassessable shares (the
"Warrant Shares") of Common Stock, par value $.001 per share (the "Common
Stock"), at the Exercise Price (as defined below) per share.

         This Warrant shall expire at the close of business on September 14,
2003.

         1. (a) The right to purchase shares of Common Stock represented by this
Warrant may be exercised by the Holder, in whole or in part, by the surrender of
this Warrant (properly endorsed if required) at the principal office of the
Company at 11935 South I-44 Service, Oklahoma City, Oklahoma 73173 (or such
other office or agency of the Company as it may designate by notice in writing
to the Holder at the address of the Holder appearing on the books of the
Company), and upon payment to the Company, by cash or by certified check or bank
draft, of the Exercise Price for such shares. The Company agrees that the shares
of Common Stock so purchased shall be deemed to be issued to the Holder as the
record owner of such shares of Common Stock as of the close of business on the
date on which this Warrant shall have been surrendered and payment

                                      -1-
<PAGE>

made for such shares of Common Stock as aforesaid. Certificates for the shares
of Common Stock so purchased (together with a cash adjustment in lieu of any
fraction of a share) shall be delivered to the Holder within a reasonable time,
not exceeding ten (10) business days, after the rights represented by this
Warrant shall have been so exercised, and, unless this Warrant has expired, a
new Warrant representing the number of shares of Common Stock, if any, with
respect to which this Warrant shall not then have been exercised, in all other
respects identical with this Warrant, shall also be issued and delivered to the
Holder within such time, or, at the request of the Holder, appropriate notation
may be made on this Warrant and the same returned to the Holder.

                (b) This Warrant may be exercised to acquire, from and after the
date hereof, the number of shares of Common Stock set forth on the first page
hereof; provided, however, the right hereunder to purchase such shares of Common
Stock shall expire at the close of business on September 14, 2003.

        2. This Warrant is being issued by the Company to Taglich Brothers, Inc.
("Taglich Brothers"), or its designee, pursuant to an agreement between the
Company and Taglich Brothers, whereby Taglich Brothers is acting as the
placement agent for the Company's bridge financing in exchange for this issuance
of a three (3) year warrant, exercisable at the Exercise Price per share to
Taglich Brothers or its designee, to purchase the Warrant Shares.

        3. In the event that the Company does not deliver an original stock
certificate for the applicable number of Warrant Shares to Taglich Brothers, or
its designee, within ten (10) days after Taglich Brothers exercises this
Warrant, the Company shall issue additional shares of Common Stock (the
"Additional Shares") to Taglich Brothers, or its designee, equal to the product
of ten (10%) percent of the number of Warrant Shares to be issued upon exercise
of this Warrant and the number of seven (7) day periods, or a part thereof,
beyond said ten (10) day period until the certificate representing the Warrant
Shares are delivered to Taglich Brothers, or its designee.

        4. The Company covenants and agrees that all Common Stock upon issuance
against payment in full of the Exercise Price by the Holder pursuant to this
Warrant will be validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof. The Company further
covenants and agrees that during the period within which the rights represented
by this Warrant may be exercised, the Company will have at all times authorized,
and reserved for the purpose of issue or transfer upon exercise of the rights
evidenced by this Warrant, a sufficient number of shares of Common Stock to
provide for the exercise of the rights represented by this Warrant, and will
procure at its sole expense upon each such reservation of shares the listing
thereof (subject to issuance or notice of issuance) on all stock exchanges on
which the Common Stock is then listed or inter-dealer trading systems on which
the Common Stock is then traded. The Company will take all such action as may be
necessary to assure that such shares of Common Stock may be so issued without
violation of any applicable law or regulation, or of any requirements of any
national securities exchange upon which the Common Stock may be listed or
inter-dealer trading system on which the Common Stock is then traded. The
Company will not take any action which would result in any adjustment in the
number of shares of Common Stock purchasable hereunder if the total number of
shares of

                                      -2-
<PAGE>

Common Stock issuable pursuant to the terms of this Warrant after such action
upon full exercise of this Warrant and, together with all shares of Common Stock
then outstanding and all shares of Common Stock then issuable upon exercise of
all options and other rights to purchase shares of Common Stock then
outstanding, would exceed the total number of shares of Common Stock then
authorized by the Company's Amended and Restated Articles of Incorporation, as
then amended.

         5. The initial exercise price is $0.001 per share of Common Stock (the
"Initial Exercise Price").

The Initial Exercise Price shall be adjusted as provided for below in this
Section 5 (the Initial Exercise Price, and the Initial Exercise Price as
thereafter then adjusted, shall be referred to as the "Exercise Price") and the
Exercise Price from time to time shall be further adjusted as provided for below
in this Section 5. Upon each adjustment of the Exercise Price, the Holder shall
thereafter be entitled to receive upon exercise of this Warrant, at the Exercise
Price resulting from such adjustment, the number of shares of Common Stock
obtained by (i) multiplying the Exercise Price in effect immediately prior to
such adjustment by the number of shares of Common Stock purchasable hereunder
immediately prior to such adjustment, and (ii) dividing the product thereof by
the Exercise Price resulting from such adjustment. The Exercise Price shall be
adjusted as follows:

                           (i) In the case of any amendment to the Amended and
                  Restated Articles of Incorporation of the Company to change
                  the rights, privileges, restrictions or conditions in respect
                  to the Common Stock or division of the Common Stock, this
                  Warrant shall be adjusted so as to provide that upon exercise
                  thereof, the Holder shall receive, in lieu of each Common
                  Stock theretofore issuable upon such exercise, the kind and
                  amount of shares, other securities, money and property
                  receivable upon such, change or division by the Holder
                  issuable upon such exercise had the exercise occurred
                  immediately prior to such designation, change or division.
                  This Warrant shall be deemed thereafter to provide for
                  adjustments which shall be as nearly equivalent as may be
                  practicable to the adjustments provided for in this Section 5.
                  The provisions of this Subsection 5(i) shall apply in the same
                  manner to successive reclassifications, changes,
                  consolidations and mergers.

                           (ii) If the Company shall at any time subdivide its
                  outstanding shares of Common Stock into a greater number of
                  shares of Common Stock, or declare a dividend or make any
                  other distribution upon the Common Stock payable in shares of
                  Common Stock, the Exercise Price in effect immediately prior
                  to such subdivision or dividend or other distribution shall be
                  proportionately reduced, and conversely, in case the
                  outstanding shares of Common Stock shall be combined into a
                  smaller number of shares of Common Stock, the Exercise Price
                  in effect immediately prior to such combination shall be
                  proportionately increased.

                                      -3-
<PAGE>

                           (iii) If any capital reorganization or
                  reclassification of the capital stock of the Company, or any
                  consolidation or merger of the Company with another
                  corporation or entity, or the sale of all or substantially all
                  of the Company's assets to another corporation or other entity
                  shall be effected in such a way that holders of shares of
                  Common Stock shall be entitled to receive stocks, securities,
                  other evidence of equity ownership or assets with respect to
                  or in exchange for shares of Common Stock, then, as a
                  condition of such reorganization, reclassification,
                  consolidation, merger or sale (except as otherwise provided
                  below in this Section 5), lawful and adequate provisions shall
                  be made whereby the Holder shall thereafter have the right to
                  receive upon the basis and upon the terms and conditions
                  specified herein, such shares of stock, securities, other
                  evidence of equity ownership or assets as may be issued or
                  payable with respect to or in exchange for a number of
                  outstanding shares of such Common Stock equal to the number of
                  shares of Common Stock immediately theretofore purchasable and
                  receivable upon the exercise of this Warrant under this
                  Section 5 had such reorganization, reclassification,
                  consolidation, merger or sale not taken place, and in any such
                  case appropriate provisions shall be made with respect to the
                  rights and interests of the Holder to the end that the
                  provisions hereof (including, without limitation, provisions
                  for adjustments of the Exercise Price and of the number of
                  shares of Common Stock receivable upon the exercise of this
                  Warrant) shall thereafter be applicable, as nearly as may be,
                  in relation to any shares of stock, securities, other evidence
                  of equity ownership or assets thereafter deliverable upon the
                  exercise hereof (including an immediate adjustment, by reason
                  of such consolidation or merger, of the Exercise Price to the
                  value for the Common Stock reflected by the terms of such
                  consolidation or merger if the value so reflected is less than
                  the Exercise Price in effect immediately prior to such
                  consolidation or merger). Subject to the terms of this
                  Warrant, in the event of a merger or consolidation of the
                  Company with or into another corporation or other entity as a
                  result of which the number of shares of common stock of the
                  surviving corporation or other entity issuable to holders of
                  Common Stock of the Company, is greater or lesser than the
                  number of shares of Common Stock of the Company outstanding
                  immediately prior to such merger or consolidation, then the
                  Exercise Price in effect immediately prior to such merger or
                  consolidation shall be adjusted in the same manner as though
                  there were a subdivision or combination of the outstanding
                  shares of Common Stock of the Company. The Company shall not
                  effect any such consolidation, merger or sale, unless, prior
                  to the consummation thereof, the successor corporation (if
                  other than the Company) resulting from such consolidation or
                  merger or the corporation purchasing such assets shall assume
                  by written instrument executed and mailed or delivered to the
                  Holder, the obligation to deliver to the Holder such shares of
                  stock, securities, other evidence of equity ownership or
                  assets as, in accordance with the foregoing provisions, the
                  Holder may be entitled to receive or otherwise acquire. If a
                  purchase, tender or exchange offer is made to and accepted by
                  the holders of more than fifty (50%) percent of the
                  outstanding shares of Common Stock of the Company, the Company
                  shall not

                                      -4-
<PAGE>

                  effect any consolidation, merger or sale with the person
                  having made such offer or with any Affiliate of such person,
                  unless prior to the consummation of such consolidation, merger
                  or sale the Holder of this Warrant shall have been given a
                  reasonable opportunity to then elect to receive upon the
                  exercise of this Warrant the amount of stock, securities,
                  other evidence of equity ownership or assets then issuable
                  with respect to the number of shares of Common Stock of the
                  Corporation in accordance with such offer.

                  Whenever the Exercise Price shall be adjusted pursuant to this
Section 5, the Company shall issue a certificate signed by its President or Vice
President and by its Chief Executive Officer, Chief Financial Officer, Assistant
Treasurer, Secretary or Assistant Secretary, setting forth, in reasonable
detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated (including a description of the
basis on which the Board of Directors of the Company made any determination
hereunder), and the Exercise Price after giving effect to such adjustment, and
shall cause copies of such certificates to be mailed (by first-class mail,
postage prepaid) to the Holder of this Warrant.

                  No fractional shares of Common Stock shall be issued in
connection with any exercise of this Warrant, but in lieu of such fractional
shares, the Company shall make a cash payment therefor equal in amount to the
product of the applicable fraction multiplied by the Exercise Price then in
effect.

                  Notwithstanding anything herein to the contrary, in no event
shall the Exercise Price be less than the market or book value of the Common
Stock.

        6. In the event the Company grants rights to all shareholders to
purchase Common Stock, the Holder shall have the same rights as if this Warrant
had been exercised immediately prior to such grant.

        7. The Holder shall, with respect to the Warrant Shares and Additional
Shares have the "piggy back" registration rights set forth in the Piggy-Back
Registration Rights Agreement dated the date hereof. Such "piggy back"
registration rights are incorporated herein by this reference as if such
provisions had been set forth herein in full.

        8. This Warrant need not be changed because of any change in the
Exercise Price or in the number of shares of Common Stock purchased hereunder.

        9. The terms defined in this paragraph, whenever used in this Warrant,
shall, unless the context otherwise requires, have the respective meanings
hereinafter specified. The term "Common Stock" shall mean and include the
Company's Common Stock, par value $.001 per share, authorized on the date of the
original issue of this Warrant and shall also include in case of any
reorganization, reclassification, consolidation, merger or sale of assets of the
character referred to in paragraph 4 hereof, the stock, securities or assets
provided for in such paragraph. The term "Company" shall also include any
successor corporation to Tower Tech, Inc. by merger, consolidation or otherwise.
The term "outstanding" when used with reference to Common Stock shall mean at
any date as of which the number of shares thereof is to be

                                      -5-
<PAGE>

determined, all issued shares of Common Stock, except shares then owned or held
by or for the account of the Company. The term "1933 Act" shall mean the
Securities Act of 1933, as amended, or any similar Federal statute, and the
rules and regulations of the Securities and Exchange Commission, or any other
Federal agency then administering such securities act, thereunder, all as the
same shall be in effect at the time.

        10. This Warrant is exchangeable, upon the surrender hereby by the
Holder at the office or agency of the Company, for new Warrants of like tenor
representing in the aggregate the right to subscribe for and purchase the number
of shares of Common Stock which may be subscribed for and purchased hereunder,
each of such new Warrants to represent the right to subscribe for and purchase
such number of shares of Common Stock as shall be designated by the Holder at
the time of such surrender. Upon receipt of evidence satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant or any such new
Warrants and, in the case of any such loss, theft, or destruction, upon delivery
of a bond of indemnity, reasonably satisfactory to the Company, or, in the case
of any such mutilation, upon surrender or cancellation of this Warrant or such
new Warrants, the Company will issue to the Holder a new Warrant of like tenor,
in lieu of this Warrant or such new Warrants, representing the right to
subscribe for and purchase the number of shares of Common Stock which may be
subscribed for and purchased hereunder.

        11. The Company agrees to use its best efforts to file timely all
reports required to be filed by it pursuant to Sections 13 or 15 of the
Securities Exchange Act of 1934, as amended, and to provide such information as
will permit the Holder to sell this Warrant or any shares of Common Stock
acquired upon exercise of this Warrant in accordance with Rule 144 under the
1933 Act.

        12. The Company will at no time close its transfer books against the
transfer of this Warrant or of any shares of Common Stock issued or issuable
upon the exercise of this Warrant in any manner which interferes with the timely
exercise of this Warrant. This Warrant shall not entitle the Holder to any
voting rights or any rights as a stockholder of the Company. The rights and
obligations of the Company, of the Holder, and of any holder of shares of Common
Stock issuable hereunder, shall survive the exercise of this Warrant.

        13. This Warrant sets forth the entire agreement of the Company and the
Holder, with respect to the rights of the Holder and the Common Stock issuable
upon the exercise of this Warrant, notwithstanding any other agreement or the
provisions of any agreement, whether or not known to the Holder, and the Company
represents that there are no agreements inconsistent with the terms hereof or
which purport in any way to bind the Holder of this Warrant or the Common Stock.

        14. The validity, interpretation and performance of this Warrant and
each of its terms and provisions shall be governed by the laws of the State of
New York.

                                      -6-
<PAGE>

        IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its duly authorized officer under its corporate seal and dated as of September
15, 2000.

                                             TOWER TECH, INC.

                                             By: /s/ Robert C. Brink
                                                ------------------------------
                                             Name: Robert C. Brink
                                                  ----------------------------
                                             Title: President
                                                   ---------------------------

                                                              [CORPORATE SEAL]

                                      -7-

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