Document:

Exhibit 10.37

                                    MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

     This MORTGAGE is made this 2nd day of November,  1999, by and between Tower
Tech Inc. an Oklahoma corporation, ("Mortgagor"), and The City of Oklahoma City,
a municipal corporation, ("Mortgagee").

                  TREASURER'S ENDORSEMENT I certify that I received $ no tax and
                  issued  receipt No. 1611  therefore in payment of mortgage tax
                  on the within mortgage $5.00 filing fee. Dated this 8th day of
                  November, 1999.

                  WITNESSETH:  Saundra DeSeims, County Treasurer.
                  By:  Jean Campbel, Deputy.

         WHEREAS, Mortgagor is justly indebted to Mortgagee in the principal sum
of Two  Million  Dollars  ($2,000,000)  which  indebtedness  is  evidenced  by a
promissory  note (the "Note") and a loan  ,agreement  (the "Loan  Agreement") of
even date herewith,  said Note payable to the order of Mortgagee,  and providing
for payment of the principal  amount thereof,  together with interest thereon on
the terms set forth therein until paid in full.

         NOW, THEREFORE,  Mortgagor, in consideration of said principal sum, and
for the purpose of securing one million dollars of said indebtedness as provided
in the  Note,  (2) the  payment  of all other  monies  secured  hereby,  (3) the
performance  of all  the  covenants,  conditions,  stipulations  and  agreements
contained in the Loan  Agreement,  grants,  conveys and mortgages unto Mortgagee
subject to the terms  hereof,  its  successors  and  assigns  forever all of the
property, real estate and premises of the Mortgagor, situate in Oklahoma County,
State of Oklahoma, described as follows, to wit:

SEE ATTACHED EXHIBIT "A"

together with all  buildings and  improvements,  (including  the  appurtenances,
hereditaments and all other rights thereto belonging), to be constructed thereon
or acquired  and affixed  thereto  with the  proceeds of the loans  described in
Paragraph 2 hereafter  and the loan secured by this  Mortgage.  This mortgage is
assignable to the Secretary of the Department of Housing and Urban Development

         TO HAVE  AND TO  HOLD  said  premises,  together  with  all  rights  of
Mortgagor therein, to Mortgagee, to successors and assigns forever.

         The Mortgagor  covenants and agrees with Mortgagee as follows,  subject
to the lien priorities described in paragraph 2 hereof.

         1. The following described estate, property and rights of Mortgagor are
also included as security for the  performance of each covenant and agreement of
Mortgagor contained herein, the payment of all sums of money secured hereby, and
the covenants, conditions and agreements contained in the Loan Agreement;

<PAGE>

         (a) All the estate and rights of Mortgagor in and to said  property and
in and to land lying in  streets  and roads  adjoining  said  premises,  and all
access rights and easements appertaining thereto.

         (b) All the estates and rights of  Mortgagor  in and to all  buildings,
structures,  improvements,  fixtures  and  articles of property now or hereafter
attached to, or used or adapted for use in the  operation of the  "Project",  as
defined in the Loan  Agreement.  Provided that nothing herein shall be construed
to extend the lien created by this Mortgage to cover  equipment  and  personalty
which  Mortgagor may from time to time purchase,  rent or lease but which do not
become an integral part of the facility.

         (c) All and singular the lands,  tenements,  privileges,  water rights,
hereditaments and appurtenances thereto belonging or in anyway appertaining, and
the reversion and  reversions,  remainder  and  remainders,  and all the estate,
rights, title, claim, interest and demand whatsoever of the Mortgagor, either in
law or in equity, of, in and to the premises;  TO HAVE AND TO HOLD said premises
described,  together  with all and  singular the lands,  tenements,  privileges,
water rights  hereditaments  and  appurtenances  thereto  belonging or in anyway
appertaining,  and the reversion and reversions,  remainder and remainders,  and
all of the estate,  right, title, claim and demands whatsoever of the Mortgagor,
either  in law or in  equity,  of,  in and to the above  described  premises  as
security for the faithful  performance of the Note secured  hereby,  as security
for the faithful performance of each and all of the covenants, agreements, terms
and conditions of this Mortgage and as security for the faithful  performance of
the  covenants,  conditions  and  agreements  contained  in the Loan  Agreement,
SUBJECT,  HOWEVER, to the right,  power, and authority  hereinafter given to and
conferred upon Mortgagee.

         (d) All of  Mortgagor's  rights  further to encumber  said property for
debt  except by such  encumbrance  which by its  actual  terms and  specifically
expressed intent shall be and at all times remain subject and subordinate to any
and  all  tenancies  in  existence  when  such  encumbrance  becomes  effective;
Mortgagor hereby (i)  representing as a special  inducement to Mortgagee to make
this Loan that as of the date hereof  there are no  encumbrances  to secure debt
junior to this Mortgage and (ii) covenanting that there are to be none as of the
date when this Mortgage  becomes of Record,  except in either case  encumbrances
having the prior written approval of Mortgagee, and subject to the liens set out
in Paragraph 2 below.

     2. To pay all debts and monies  secured  hereby or secured by any  mortgage
prior to this  Mortgage,  when from any cause the same shall become due. To keep
the property free from statutory and governmental  liens of any kind.  Mortgagor
represents that there are no liens or encumbrances against or upon the property,
except for the Oklahoma  Industries  Authority  First  Mortgage in the principal
amount of Four Million Four Hundred Five Thousand Dollars  ($4,405,000) and City
of  Oklahoma  City  Mortgage  in the amount of One  Million  Two  Hundred  Fifty
Thousand Dollars  ($1,250,000) and none superior to such liens and this Mortgage
will be created or  suffered to be created by the  Mortgagor  during the life of
this Mortgage  without the written consent of Mortgagee;  that it has good right
to make this Mortgage and that it will forever  warrant and defend said property
unto the Mortgagee,  its successors and assigns, against every person whomsoever
lawfully  claiming or to claim the same or any part thereof The  Mortgagor  upon
request by mail will furnish a written statement duly acknowledged of the amount
due on this Mortgage and whether any offsets or defenses  exist against the debt
secured hereby.

         3. To maintain the buildings and other  improvements on the property in
a tenantable  condition and good and operable state of repair, to neither commit
nor suffer any waste, to promptly  comply with all  requirements of the Federal,
State,  County  and  Municipal  authorities  and  all  other  laws,  ordinances,
regulations,  covenants, conditions and restrictions respecting said property or
the  use  thereof,  and  pay  all  fees or  charges  of any  kind in  connection
therewith.  The Mortgagee may recover as damages for any breach of this covenant
the amount it would cost to put the property in the condition called for herein.
Mortgagor  shall  permit  Mortgagee  or its  agents  and  the  Secretary  of the
Department  of Housing  and Urban  Development  and his  agents to  inspect  the
Project during normal business  hours,  including the interior of any structures
upon request by Mortgagee, the Secretary or their agents.

         4. To complete or restore promptly and in good  workmanlike  manner any
building or improvement which may be constructed,  damaged or destroyed thereon,
and pay when due all costs incurred therefor.

         5. No building, improvement, or fixture covered by this Mortgage may be
removed  at any time  without  the prior  written  consent of  Mortgagee  unless
actually replaced by an article of equal suitability,  owned by Mortgagor,  free
and  clear  of any lien or  security  interest  except  the  lien  described  in
paragraph 2 or those approved in writing by Mortgagee.

         6. To provide to the Mortgagee,  at least thirty (30) days notice prior
to expiration of existing insurance, and maintain unceasingly,  insurance,  with
premiums paid, on all of the property that is the subject of this  Mortgage,  or
hereafter  becoming  part of the said  property,  against loss by fire and other
hazards,  casualties and contingencies,  as may be required from time to time by
the  Mortgagee  in such  amounts  and for such  period  of time,  with  standard
Mortgagee clauses (without contribution) in favor of and in form satisfactory to
the  Mortgagee.  In event of  foreclosure  of this Mortgage or other transfer of
title  to  the  subject  property  in  extinguishment  of  some  or  all  of the
indebtedness  secured  hereby,  all interest of the  Mortgagor in any  insurance
policies in force shall pass to the purchaser or grantee.  On default under this
paragraph Mortgagee may, at its option, pay any such sums, without waiver of any
other right of Mortgagee by reason of such default of  Mortgagor,  and Mortgagee
shall not be liable to Mortgagor for failure to exercise any such option.
     7. To appear in and defend any suit, action or proceeding that might affect
the value of this security  instrument or the security  itself or the rights and
powers of Mortgagee;  and should  Mortgagee  after  consultation  with Mortgagor
elect also to appear in or defend any such action or proceeding, be made a party
to such by reason of this Mortgage, or elect to prosecute such action as appears
necessary to preserve  said value,  the Mortgagor  will at all times,  indemnify
from, and, on demand reimburse  Mortgagee for any and all loss, damage,  expense
or cost, including cost of evidence of title and attorneys' fees, arising out of
or incurred in connection with any such suit, action or proceeding,  and the sum
of such expenditures shall be secured by this Mortgage with interest as provided
in the Note secured hereby and shall be due and payable on demand.  To pay costs
of suit,  costs of  evidence  of title  and  reasonable  attorneys'  fees in any
proceeding or suit brought by Mortgagee to foreclose this Mortgage.

          8. To pay in full at least ten (10) days before  delinquent all rents,
taxes,  assessments and encumbrances,  charges or liens with interest,  that may
now or  hereafter be levied,  assessed or claimed upon the property  that is the
subject of this Mortgage or any part thereof, which may at any time appear to be
prior or superior hereto for which provision has not been made  heretofore,  and
upon request will exhibit to Mortgagee  official receipts  therefor,  and to pay
all taxes imposed upon, reasonable costs, fees and expenses of this Mortgage. On
default under this paragraph  Mortgagee  may, at its option,  pay any such sums,
without  waiver of any other  right of  Mortgagee  by reason of such  default of
Mortgagor,  and  Mortgagee  shall not be  liable to  Mortgagor  for  failure  to
exercise any such option.

          9. To repay  immediately  on  written  notice  to  Mortgagor  all sums
expended or advanced hereunder by or on behalf of Mortgagee,  with interest from
the date of such  advance or  expenditure  at the rate of six  percent ( 6%) per
annum until paid, and the repayment thereof shall be secured hereby.  Failure to
repay such  expenditure or advance and interest  thereon within thirty (30) days
of the mailing of such notice will, at Mortgagee's  option,  constitute an event
of default  hereunder;  or,  Mortgagee  may, at its  option,  commence an action
against  Mortgagor for the recovery of such  expenditure or advance and interest
thereon, and in such event Mortgagor agrees to pay, in addition to the amount of
such  expenditure  or  advance  and  interest  thereon,  all costs and  expenses
incurred in such action, together with attorneys' reasonable fees.

          10. Should  Mortgagor fail to make any payment or do any act as herein
provided,  the Mortgagee,  but without  obligation to do so and with thirty (30)
days written notice to or demand upon Mortgagor and without releasing  Mortgagor
from any obligation hereof,  may: Make or do the same in such manner and to such
extent as is  necessary  to protect  the  security  hereof,  Mortgagee  shall be
authorized to enter upon the property for such purposes; if necessary to protect
Mortgagee's interest in the security shall be authorized to commence,  appear in
and defend any action or proceeding  purporting to affect the security hereof or
the rights or powers of Mortgagee;  pay,  purchase,  contest,  or compromise any
encumbrance,  charge or lien which in the  judgment of  Mortgagee  appears to be
prior  or  superior  hereto;  and in  exercising  any  said  powers,  incur  any
liability,  and  expend  whatever  amounts  are  reasonably  necessary  therefor
including cost of evidence of title and employing counsel.

     11.  Should the property or any part or  appurtenance  thereof or. right or
interest  therein  be taken or  damaged  by  reason  of any  public  or  private
improvement,   condemnation   proceeding  (including  change  of  grade),  fire,
earthquake  or other  casualty,  or in any other  manner,  Mortgageemay,  at its
option,  but after written notice to and consultation with Mortgagor,  commence,
appear in and prosecute, in its own name, any action or proceeding,  or make any
compromise or settlement,  in connection with such taking or damage,  and obtain
all  compensation,  awards  or other  relief  therefor.  All such  compensation,
awards,  damages,  rights of action and proceeds,  including the proceeds of any
policies of insurance affecting the property,  are hereby assigned to Mortgagee,
which may,  after  deducting  therefrom all its expenses,  including  attorneys'
fees,  release  any  monies  so  received  by  it,  or  apply  the  same  on any
indebtedness  secured  hereby or apply the same to the repair or  restoration of
the property, provided that Mortgagee agrees that if the Project remains viable,
such  proceeds  will first be used to repair and restore the  property.  In such
event,  Mortgagor  further  assigns to  Mortgagee  any return  premiums or other
repayments  upon any  insurance  at any time  provided  for the  benefit  of the
Mortgagee,  refunds,  or rebates made of taxes or  assessments on said property,
and Mortgagee may at any time collect said return premiums, repayments, refunds,
rebates,  etc.,  notwithstanding that no sum secured hereby be overdue when such
right to collection be asserted.  Mortgagor  also agrees to execute such further
assignments  of any  such  compensation,  award,  damages,  rebates,  return  of
premiums, repayments, rights of action and proceeds as Mortgagee may require.

          12. Time is of the essence in connection  with all  obligations of the
Mortgagor  in this  Mortgage  or in the  Note or Loan  Agreement.  By  accepting
payment of any sum secured  hereby after its due date,  Mortgagee does not waive
its right either to require prompt payment when due of all other sums so secured
or to declare default for failure to pay.

          13. In case of a sale under this Mortgage,  the said  property,  real,
personal and mixed, may be sold in one parcel.

     14. The Mortgagor shall not hereafter,  impair the security for the debt or
the  Mortgagee's  lien  upon  said  property.  In the  event  of  breach  of any
requirement  of this  paragraph,  the  Mortgagee  may,  in addition to any other
rights or remedies,  at any time thereafter  declare the whole of said principal
sum immediately due and payable; provided, that Mortgagee shall advise Mortgagor
of any such breach in writing and Mortgagor shall have thirty (30) days from the
date of the notice to remedy the breach.

          15. All sums secured hereby shall become  immediately due and payable,
at the option of Mortgagee,  should  Mortgagor  fail to cure any default  within
thirty (30) days, unless otherwise  provided,  of written notice to Mortgagor by
Mortgagee of such default. Each of the following occurrences shall constitute an
event of default:

          (a) default by  Mortgagor in the payment of any  indebtedness  secured
hereby or in performance or observance of any agreement contained herein; or any
indebtedness  to any  subsequent  lender  which  is  secured  by a  lien  on the
property; or

          (b) any assignment made by Mortgagor or the then owner of said
property for the benefit of creditors; or

          (c) any  transfer  of title made by the  Mortgagor  without  the prior
written  approval of the  Mortgagee or any of the  following  shall occur,  with
respect to the property,  the Mortgagor or the then owner of said property:  (i)
the appointment of a receiver,  liquidator, or Trustee; (ii) the adjudication as
a bankrupt or  insolvent;  (iii) the filing of any  Petition  for-Bankruptcy  or
reorganization;  (iv) the  institution  of any  proceeding  for  dissolution  or
liquidation; (v) if Mortgagor be unable, or admit in writing an inability to pay
his debts when due; or (vi) a default in any  provision of any other  instrument
which may be held by  Mortgagee as security  for said Note,  including  the Loan
Agreement  and  related   documents,   the  term  and  covenants  of  which  are
incorporated  herein by reference as though fully set forth herein. No waiver by
Mortgagee of any default on the part of Mortgagor shall be construed as a waiver
of any subsequent default hereunder.

          16. In the event of the passage,  after the date of this Mortgage,  of
any Federal,  State or local law, deducting from the value of real property, for
the purpose of taxation, any lien thereon or changing in any way the laws now in
force for the taxation of Mortgages,  deeds of trust or debts  secured  thereby,
for Federal,  State or local  purposes,  or the manner of the  collection of any
such taxes so as to affect the  interest  of  Mortgagee,  then and in such event
Mortgagor shall bear and pay the full amount of such taxes, provided that if for
any reason  payment by  Mortgagor of any such new or  additional  taxes would be
unlawful or if the payment thereof would  constitute usury or render the loan or
indebtedness  secured hereby wholly or partially usurious under any of the terms
or provisions of the Note, or the Mortgage or other vise,  Mortgagee may, at its
option, after three (3) months written notice,  declare the whole sum secured by
this  Mortgage  with  interest  thereon to be  immediately  due and payable,  or
Mortgagee may, at its option pay that amount or portion of such taxes as renders
the loan or  indebtedness  secured hereby  unlawful or usurious,  in which event
Mortgagor shall concurrently therewith pay the remaining lawful and non-usurious
portion or balance of said taxes.

          17. If from any circumstances whatever fulfillment of any provision of
this Mortgage or of the Note or Loan  Agreement at the time  performance of such
provision  shall  be due  shall  involve  transcending  the  limit  of  validity
prescribed by the usury statute or any other law, then ipso facto the obligation
to be fulfilled  shall be reduced to the limit of such  validity,  so that in no
event shall any exaction be possible under this Mortgage or under said Note that
is in  excess  of the  limit  of such  validity;  but such  obligation  shall be
fulfilled to the limit of such validity.  The provisions of this paragraph shall
control every other provision of this Mortgage and said Note and Loan Agreement.

          18. In the event that this  Mortgage is  foreclosed  and the  property
sold at a foreclosure  sale,  the purchaser may,  during any  redemption  period
allowed,  make such repairs or alterations on said property as may be reasonably
necessary for the proper operation, care, preservation,  protection and insuring
thereof.  Any sums so paid  together  with  interest  thereon  from time of such
expenditure  at the  highest  lawful rate shall be added to and become a part of
the amount required to be paid for redemption from such sale.

          19.  Mortgagor shall deliver to Mortgagee an audited annual  statement
within ninety (90) days of the end of Mortgagor's  fiscal year which shall cover
the income from and  operating  expenses of the Project;  or within  thirty (30)
days after written  requested by Mortgagee,  a detailed  operating  statement in
form satisfactory to the Mortgagee covering the Project and certified as correct
by Mortgagor. Mortgagor shall permit the Mortgagee or its representative, or the
Secretary  of  the   Department  of  Housing  and  Urban   Development   or  his
representative,  to examine all books and records  pertaining to the property at
any time upon reasonable notice. In the event of Mortgagor's  failure to provide
access to such records, Mortgagee shall, in addition to all other remedies, have
the option of maturing the indebtedness hereby secured.

          20.  Mortgagee shall have the right, at its option,  to foreclose this
Mortgage  subject to the rights of any tenant or tenants of the property and the
failure  to make any such  tenant or  tenants a party  defendant  to any suit or
action or to foreclose  their rights will not be asserted by the  Mortgagor as a
defense in any action or suit  instituted  to collect the  indebtedness  secured
hereby or any part thereof or any deficiency  remaining unpaid after foreclosure
and sale of the property, any statute or rule of law at any time existing to the
contrary notwithstanding.

          21.  Notwithstanding  anything to the contrary herein contained,  the
Mortgagee  agrees to look solely to the  Mortgagor's  interest in the Project as
security for payment of the indebtedness  hereby secured and for the performance
of the  provisions  of the Note,  the Mortgage and any other  document  securing
payment of the Note. Nothing in the Loan Agreement,  the Note or the Mortgage or
in any other  instrument  securing payment of the Note shall impose any personal
obligation  or liability on any  individual  having or acquiring any interest in
the Project. On default in payment of the Note or performance of the Mortgage or
of any other  instrument  securing  payment of the Note,  no deficiency or other
money  judgment  shall be sought or obtained  against any such  person.  Nothing
herein contained shall impair any lien or security  interest securing payment of
the  indebtedness  owing to the  Mortgagee  or  otherwise  limit or restrict the
rights of the Mortgagee with respect to the Project or any other collateral.

          22. All Mortgagee's  rights and remedies herein specified are intended
to be  cumulative  and not in  substitution  for any right or  remedy  otherwise
available and no  requirement  whatsoever  may be waived at any time except by a
writing  signed by the  Mortgagee,  nor shall any waiver be operative upon other
than a single  occasion.  This Mortgage cannot be changed or terminated  orally.
This Mortgage  applies to, insures to the benefit of, and is binding not only on
the parties  hereto,  but on their  heirs,  devises,  legatees,  administrators,
executors,  successors and assigns.  All obligations of Mortgagor  hereunder are
joint and several.  Without  affecting the liability of any other person for the
payment of any obligation herein mentioned (including Mortgagor should it convey
said  property)  and without  affecting  the lien hereof upon any  property  not
released,  Mortgagee may, without notice,  release any person so liable,  extend
the  maturity  or  modify  the  terms of any  such  obligation,  or grant  other
indulgences,  release or reconvey or cause to be released or  reconveyed  at any
time all or part of the said  property  described  herein,  take or release  any
other  security or make other  arrangements  with  debtors.  Mortgagee  may also
accept additional security, either concurrently herewith of thereafter, and sell
same or otherwise realize thereupon,  either before, concurrently with, or after
sale  hereunder.  This Mortgage shall be so construed that wherever  applicable,
the use of the singular  number shall include the plural number,  the use of any
gender shall be applicable to a  corporation.  The word "Note" shall include all
notes  evidencing  the  indebtedness  secured  hereby.  If any of the provisions
hereof shall be determined  to  contravene  or be-invalid  under the laws of the
State of Oklahoma,  such contravening or invalidity shall be construed as if not
containing the particular  provision or provisions  held to be invalid,  and all
rights  and   obligations   of  the  parties  shall  be  construed  or  enforced
accordingly.  Any written notice required or allowed to be given pursuant to any
of the terms of this  Mortgage  shall mean by  Certified  Mail  addressed to the
parties as follows:

The Borrower:                               Tower Tech, Inc.
                                            P.O. Box 891810
                                            Oklahoma City, OK 73023
         Attention:                         Charles D. Whitsitt,
                                            Chief Financial Officer

The Lender:                                 The City of Oklahoma City
                                            420 West Main
                                            Suite 920
                                            Oklahoma City, OK 73102
         Attention:                         Garner Stoll, Planning Director

Any time period  provided in the giving of any notice  hereunder  shall commence
three (3) days after the date such notice is mailed.

         23. Borrower shall, for so long as the Loan Documents remain in effect,
at its cost and expense,  carry and maintain general public liability  insurance
against claims for bodily injury,  personal  injury,  death and property  damage
occurring or arising out of the Project, which insurance shall cover such claims
as may be  occasioned  by any act,  omission,  or  negligence of Borrower or its
officers, agents, representatives,  assigns or servants relating to the Project.
The limits of liability  insurance,  which may be required to be increased  from
time to time as deemed  necessary by the Lender,  with the approval of Borrower,
which  shall not be  unreasonably  withheld,  shall be not less than One Million
Dollars  ($1,000,000.00)  combined  single  limit  personal  injury and property
damage insurance.  The insurance  required above shall be issued by an insurance
company or companies  authorized to do business  within the State of Oklahoma or
by such other similar insurance coverage approved by the Insurance  Commissioner
of the  State  of  Oklahoma.  The  Lender  shall  be  specifically  named  as an
additional  insured on all such policies,  and any such policy or policies shall
be primary to any other valid and collectible insurance.

WITNESS  the hand  and seal of the  Mortgagor  on the day and year  first  above
written.

                                              Tower Tech, Inc.

                                              By:ss/CHARLES D. WHITSITT
                                                -----------------------
                                              Charles D. Whitsitt
                                              Chief Financial Officer

ATTEST:

ss/PATTY POAG
-------------
Secretary

                            CORPORATE ACKNOWLEDGMENT

STATE OF OKLAHOMA
COUNTY OF OKLAHOMA

On this 1st day of November,  1999,  before me  personally  appeared  Charles D.
Whitsitt to me known to be the CFO of Tower Tech, Inc., an Oklahoma corporation,
that  executed  the within  and  foregoing  instrument,  and  acknowledged  said
instrument to be the free and voluntary  act and deed of said  corporation,  for
the uses and  purposes  therein  mentioned,  and on oath  stated that he/she was
authorized to execute said instrument and that the seal affixed is the corporate
seal of said corporation.

In Witness  Whereof I have  hereunto  set my hand the day and year  first  above
written.

                                            ss/PATTY LEWIS POAG
                                               ----------------
                                               N0TARY PUBLIC

MY COMMISSION EXPIRES: March 9, 2002

APPROVED as to form and legality this 2nd day of November, 1999.

                                             ss/DARRELL SIMMONS
                                                ---------------
                                                Assistant Municipal Counselor
<PAGE>

                                   EXHIBIT "A"

                                     TRACT 1

A part of the Southeast Quarter (SE/4) of Section Eleven (11), Township Ten (10)
North, Range Four (4) West of the Indian Meridian,  Cleveland County,  Oklahoma,
being more particularly described as follows: Commencing at the Southeast corner
of said SE/4;  thence S 89 degrees 42' 04" W along the South line of said SE/4 a
distance of 1,780.60  feet to the point of  beginning,  thence  continuing  S 89
degrees  42' 04" W along  the  South  line a  distance.  of  843.24  feet to the
Southwest corner of said SE/4:  thence N 00degrees 07' 35" W on the West line of
said SE/4 a distance of 1764.49 feet to a point 880 feet South of the  Northwest
corner of said SE/4,  thence N 89 degrees  42' 07" E parallel to and 880.00 feet
South of the North  line of said SE/4 a  distance  of 240.00  feet;  thence S 00
degrees  07' 35" E and  parallel  with the West line of said SE/4 a distance  of
800.00 feet;  thence S 14 degrees 49' 10" E a distance of 490.68 feet,  thence N
89 degrees 42' 07" E and parallel with the North line of said SE/4 a distance of
1092.55  feet to a point  on the  West  right-of-way  line of Will  Rogers  West
Expressway  (Interstate Highway No. 44); thence S 48 degrees 12' 00" W along the
West right-of-way line of said Expressway a distance of 431.80 feet; thence S 89
degrees  42' 04" W and  parallel  with the South line of said SE/4 a distance of
200.00  feet;  thence  S 48  degrees  11' 34" W and"  parallel  to the  Westerly
right-of way line of said  Expressway  for a distance of 3.15 feet to a point of
curvature;  thence Southwesterly and parallel to the Westerly  right-of-way line
of said  Expressway  and on the arc of a curve  to the left  having a radius  of
185.78 feet,  and a chord  bearing of S 23 degrees 56' 51" W for an arc distance
of 157.23  feet to a point,  thence S 42 degrees  20' 39" W a distance  of 39.62
feet to a point  33.00 feet  North of the South  line of said SE/4;  thence S 00
degrees 17' 56" E a distance  of 33.00 feet to the point or place of  beginning.
Said parcel contains 20.310 acres more or less.

                                     Tract 2

         A part of the Southeast Quarter (SE/4) of Section Eleven (11), Township
Ten (10) North. Range Four (4) West of the Indian Meridian,  Cleveland.  County,
Oklahoma,  being more  particularly  described  as  follows:  Commencing  at the
Southwest corner of said SE/4; thence N 00 degrees 07' 35" W on the West line of
said SE/4 a distance of 1764.49 feet to a point 880 feet south of the  Northwest
corner of said SE/4,  thence 9 89 degrees  42' 07" E parallel to and 880.00 feet
South of the North line of said SE/4 a distance  of 240.00  feet to the point or
p1ace of  beginning;  thence  continuing  N 89 degrees 42' 07" E parallel to and
880.00  feet  South of the North line of said SE/4 a  distance  of 250.00  feet;
thence S 00  degrees  07' 35" E and  paral1el  with the West line of said SE/4 a
distance  of 450.00  feet;  thence N 89 degrees 42' 07" East  parallel  with the
North  line of said  SE/4 a  distance  of  1380.65  feet to a point  on the West
right-of-way  line of Will Rogers West Expressway  (Interstate  Highway No. 44);
thence  S 18  degrees  12'  00" W  along  the  West  right-of-way  line  of said
Expressway  a  distance  of  501.74  feet  to  a  point  of  curvatures,  thence
Southwesterly along the West right-of-way line of said Expressway and on the arc
of a curve to the right having a radius of 681.20 feet and a chord  bearing of S
33 degrees 11' 53" W for an arc  distance of 356.68 feet to a point of tangency;
Thence S 48 degrees 1l' 34"W along the West right-of-way line of said Expressway
a distance  of 83.25  feet,  thence S 89 degrees  42' 07" W and  parallel to the
North line of said SE/4 a distance of 1092.55 feet;  thence N 14 degrees 49' 10"
W a distance of 490.68  feet;  thence N 89 degrees 42' 07" W and parallel to the
West  line of said SE/4 a  distance  of  1.169.19  feet to the point or place of
beginning. Said parcel contains 29.849 acres more or less.

                           Attachment "B"
Less This Parcel

A part of the Southeast Quarter (SW4) of Section (11),  Township Ten (10) North,
Range Four (4) West of the Indian Meridian,  Cleveland County,  Oklahoma,  being
more particularly described as follows:

Commencing at the southeast Corner of said southeast Quarter (SE/4);

Thence  South 89 degrees  42' 04" West  along the South  line of said  Southeast
Quarter (SE/4) a distance of 1,780 feet;

Thence  continuing South 89 degrees 42' 04" West along the South line a distance
of 843.24 feet to the Southwest Corner of said southeast Quarter (SE/4);

Thence North 00 degrees 07' 35" West on the West line of said Southeast  Quarter
(SE/4) a distance of 1764.49  feet to a point South of the  Northwest  Corner of
said Southeast Quarter (SE/4);

Thence  North 89 degrees  42' 07" East  parallel to and 880.00 feet South of the
North line of said Southeast Quarter (SE/4) a distance of 240.00 feet;

Thence  South 00 degrees  07' 35" East and  parallel  with the West line of said
Southeast Quarter (SE/4) a distance of 735.00 feet to the point of beginning;

Thence continuing South 00 degrees 07' 35"East a distance of 65.00 feet;

Thence  North 80 degrees 42' 07" East and  parallel  with the North line of said
Southeast Quarter (SE/4) a distance of 360.55 feet;

Thence  North 00 degrees  07' 35" West and  parallel  with the West line of said
Southeast Quarter (SE/4) a distance of 540.00 feet;

Thence  south 80 degrees 42' 07" West and  parallel  with the North line of said
Southeast  Quarter  (SE/4) a  distance  of 485.00  feet to the point or place of
beginning.

(Administration Building)Exhibit 10.38

                                 LOAN AGREEMENT

         This  Agreement  made this 2nd day November  1999,  between The City of
Oklahoma  City, an Oklahoma  Municipal  Corporation  (hereinafter  "Lender") and
Tower Tech Inc., a publicly held Oklahoma Corporation (hereinafter "Borrower").

 Definitions

     Unless  specifically  provided otherwise or the context otherwise requires,
when used in the Loan Agreement:
     (1) "Act" means the Housing and Community  Development Act of 1974, Pub. L.
No. 93-383  codified as 42  U.S.C.ss.5301  et seq., as amended,  and regulations
promulgated thereunder.
(2) "Audits"  means the regular  audit of the  Borrower,  a copy of which may be
requested by the Lender if required by HUD. 3) "Appropriate  Draw Request" shall
consist of a complete and accurate  statement by the Borrower on forms  supplied
by Lender  showing a complete  and  detailed  breakdown  of the total  costs and
expenses incurred by Borrower for the project, reviewed by a committee comprised
of one representative of the Oklahoma Industries Authority, one from the Bank of
Oklahoma,  one from  the  City  Manager's  office,  and one  from  the  Planning
Department.

(4) "City" means the City of Oklahoma City, an Oklahoma municipal corporation.
(5  "Closing Date" means the date of execution of this Loan Agreement by the
     City.
(6) "Loan Funds" or "Funds" means proceeds of this Agreement.
(7) "Loan  Documents"  means  this Loan  Agreement,  the  Promissory  Note,  the
Mortgage,  and other  instruments,  if any, securing  repayment of the Loan. (8)
"Low and Moderate-  Income  Persons"  means such persons as defined in 24 C.F.R.
Part 570, Section 570.3.

(9) "Project" means the Tower Tech manufacturing facility and other working
     capital.
(10)"Project  Site" means the  location of the Project at SW 119th  Street and
Interstate  44 within the  corporate  boundaries  of the City of Oklahoma  City,
Oklahoma,  as more  particularly  described in Attachment "A".
(11)"Promissory Note" or "Note" means the promissory note of even date herewith
from Borrower to Lender evidencing the Loan.
(12)"Secretary" means the Secretary of Housing and Urban Development or any
other officialof HUD to whom the Secretary has delegated authority pursuant t
the Act.
(13) "Term"  means the term of this  Agreement,  which shall  commence  upon the
Closing  Date and shall  terminate on the 12th month  anniversary  thereof or at
such time thereafter agreed to by both parties.

                                    RECITALS

         WHEREAS, Borrower has applied to the Lender for a Loan in the principal
sum of Two Million Dollars  ($2,000,000) from Community  Development Block Grant
Funds,  and  Lender  has  agreed to make a loan of such funds upon the terms and
conditions set forth below; and

          WHEREAS,  the  purpose of this Loan is to assist the  Borrower  in the
operation of his manufacturing facility in Oklahoma City and providing operating
capital to aid the borrower; and

          WHEREAS, the development ofthe Project will add, as previously agreed,
an additional 140 presently existing employees to the Oklahoma City area economy
and will add, as previously  agreed,  approximately 200 new employees within the
next  three  years and will  provide  other  public  benefits  and  qualify  for
assistance  under 24 CFR  570.208(a);  and the Lender has agreed to provide Loan
Funds to Borrower for the Project;  and the Loan from the Lender to Borrower for
the Project will assist in the development of the Project; and

          WHEREAS,  the Loan  shall be  evidenced  by this Loan  Agreement,  the
Borrower's  Promissory  Note,  and the  Mortgage,  and Uniform  Commercial  Code
Financing Statement; and

          WHEREAS,   the  Lender  is  willing  to  make  the  Loan  to  Borrower
exclusively  for the  purposes  herein  above set forth,  all upon the terms and
conditions herein set forth; and

          WHEREAS,  the Lender makes no commitment to future support and assumes
no obligation for future support of the activities contracted for herein, except
as expressly set forth in this Agreement.

          NOW,  THEREFORE,  in consideration  of the foregoing  Recitals and the
terms,  covenants  and  conditions,  representations  and  warranties  contained
herein, the parties hereto agree as follows:

                                     TITLE I

                                    THE LOAN

          1.1  The  Loan.  In  reliance  upon  Borrower's   representations  and
warranties  contained herein,  and subject to the terms and conditions set forth
herein,  the Lender  hereby  agrees to make a Loan to Borrower in the sum of Two
Million  Dollars  ($2,000,000)  exclusively  for the purposes set forth  herein,
which Loan shall be funded out of funds  received by the Lender through HUD from
the Community  Development  Block Grant (CDBG) program and from no other source.
Borrower  shall have the right to receive Loan Funds only  pursuant to the terms
and conditions of this  Agreement and in accordance  with the Act, and then only
to the extent CDBG  proceeds  are made  available  to the Lender by HUD.  Should
anticipated  sources of Loan Funds become  unavailable to the Lender, the Lender
shall  within a  reasonable  time not to exceed  ten (10)  working  days  notify
Borrower in writing and the Lender shall be released from all liability for that
portion of the Funds to be provided  to  Borrower by the Lender  under this Loan
Agreement which have not been received by the Lender from HUD.

         1.2     Loan  Documentation.  The Loan will be evidenced by this Loan
                 Agreement, the Note, the Mortgage, and the Uniform Commercial
                 Code Financing Statement.

          1.3     Demand. Lender may demand repayment of the Loan in the event
                  of the occurrence of an Event of Default hereunder.

                                   ARTICLE II

                     BORROWER'S REPRESENTATIONS AND WARRANTIES

          In order to induce  the Lender to make the Loan,  Borrower  represents
and warrants (which  representations and warranties shall be true and correct as
of the  execution  hereof and shall  survive the  execution and delivery of this
Loan Agreement) as follows:

          2.1  Organization  of  Borrower,  Authority  to Enter into  Agreement.
Borrower is an Oklahoma  corporation duly formed and validly in existence and in
good standing pursuant to laws of the State of Oklahoma and duly domesticated in
the State of  Oklahoma.  Borrower has the right and power to purchase and occupy
the Project  Site,  and to develop the Project;  and Borrower has full power and
authority to enter into this Agreement. The execution,  delivery and performance
of this Agreement has been duly authorized by all-necessary corporate action and
no other  authorization by Borrower is required for the execution,  delivery and
performance of this Agreement.

          2.2 No  Litigation.  As of the date of  execution  of this  Agreement,
there are no actions,  suits or  proceedings  pending,  or to the  knowledge  of
Borrower  threatened  against or affecting  it, its  controlling  Board,  or the
Project in any court at law or in equity,  or before or by any  governmental  or
municipal  authority which might have a materially adverse effect on the ability
of Borrower to perform its obligations hereunder.

          2.3     Title. Borrower has legal title in the Project Site sufficient
to enable Borrower to develop the Project thereon.

          2.4  Covenants,  Zoning and Codes.  Borrower  has complied to date and
will  continue  to  comply  with  all-applicable   enviromenental  statutes  and
regulations applicable to the development of the Project. All permits, consents,
approvals or authorizations by, or registrations,  declarations,  withholding of
objections or filings with any  governmental  body necessary in connection  with
the  valid  execution,  delivery  and  performance  of the  Loan  Documents,  or
presently necessary for the development of the Project, have been obtained,  are
valid,  adequate  and in full force and effect or will be obtained  prior to the
commencement of any Project Activities for which a permit, consent,  approval or
authorization  is  necessary.  Development  of the Project  will in all respects
conform  to  and  comply  with  all  covenants,  conditions,   restrictions  and
reservations  affecting  the  Project  Site  and  with  all  applicable  zoning,
environmental  protection,   use  and  building  codes,  laws,  regulations  and
ordinances.

          2.5 Creation of Jobs. Lender has relied upon  representations  made by
Borrower  that the Project is expected to create a specific  number of permanent
new  job  opportunities,  including  a  specific  number  of new  permanent  job
opportunities for Low and Moderate-Income  Persons. By its execution of the Loan
Documents,  Borrower acknowledges its previous representation,  as stated in the
Loan Agreement  dated September 8, 1997 by and between the City of Oklahoma City
and  Tower  Tech  (Prior  Agreement),  pertaining  to the  creation  of jobs and
obligation to create  approximately  200 new permanent jobs.  Borrower agrees to
use its best  efforts to ensure  that at least 51  percent of all new  permanent
jobs resulting  from the Project are made  available to Low and Moderate  income
Persons.

         2.6 Compliance With Documents. As of the date hereof and for so long as
this  Agreement  remains  in  effect,  Borrower  is and  shall  remain  in  full
compliance  with all of the terms and conditions of the Loan  Documents,  and no
Event of Default has or shall have occurred and be continuing,  which,  with the
lapse of time or the giving of notice,  or both,  would constitute such an Event
of Default under the foregoing.

         2.7 Incorporation of  Re-presentations  and Warranties.  The request by
Borrower for any payment of Loan funds under the Loan Documents shall constitute
a certification  by Borrower that the aforesaid  representations  and warranties
are true and correct as of the date of such request.

                                   ARTICLE III

                      CONDITIONS PRECEDENT TO LOAN CLOSING

         The Lender's  obligation to enter into and perform its duties under the
Loan  Documents  shall be subject to the full and complete  satisfaction  of the
following conditions precedent:

         3.1  Documents.  The Lender  shall have  received  and  approved  fully
executed originals of this Loan Agreement,  the Note, the Mortgage,  the Uniform
Commercial Code Financing Statement, and the non-recourse personal guarantee, in
a form approved by Lender, Harold Curtis, Chief Executive Officer; Robert Brink,
President;  Micah Curtis,  Vice President;  and Charles Whitsitt,  Chief Finance
Officer  secured by a pledge of their  common  stock in Tower  Tech Inc.  all of
which shall have been duly authorized, executed and delivered by Borrower.

         3.2 Evidence of  Authority.  The Lender  shall,  upon written  request,
receive  evidence  satisfactory  to it that Borrower and the persons  signing on
behalf of Borrower have the capacity and  authority to.  execute and deliver the
Loan Documents on behalf of Borrower.

         3.3 Insurance. Borrower shall, for so long as the Loan Documents remain
in effect, at its cost and expense,  carry and maintain general public liability
insurance against claims for bodily injury,  personal injury, death and property
damage occurring or arising out of the Project, which insurance shall cover such
claims as may be occasioned by any act,  omission,  or negligence of Borrower or
its  officers ' agents,  representatives,  assigns or  servants  relating to the
Project.  The  limits  of  liability  insurance,  which  may be  required  to be
increased from time to time as deemed necessary by the Lender, with the approval
of Borrower,  which shall not be unreasonably  withheld,  shall be not less than
One Million Dollars ($  1,000,000.00)  combined single limit personal injury and
property damage  insurance.  The insurance  required above shall be issued by an
insurance  company or companies  authorized  to do business  within the State of
Oklahoma or by such other similar  insurance  coverage approved by the Insurance
Commissioner of the State of Oklahoma. The Lender shall be specifically named as
an  additional  insured on all such  policies,  and any such  policy or policies
shall be primary to any other valid and collectible insurance.

                                   ARTICLE IV

                     CONDITIONS PRECEDENT TO LOAN DISBURSAL

         4.1  Conditions  Precedent  to  Disbursal  of Loan Funds.  The Lender's
obligation  to  disburse  Loan Funds  pursuant  to the terms  hereof  shall,  in
addition  to  compliance  with the terms of Article  III  hereof,  be subject to
satisfaction of the following condition precedent:

                  (a) The Lender shall have received and have in its  possession
         sufficient proceeds from HUD to fund the disbursal request of Borrower.
         Borrower acknowledges that it has no right to the Loan funds other than
         to have them  disbursed by the Lender in  accordance  with the terms of
         this Loan Agreement and in accordance with the Act and then only to the
         extent the Lender has received funds from HUD.

                  (b) Receipt by Lender of an Appropriate  Draw Request covering
                  the sum to be  reimbursed  for eligible  expenses  incurred to
                  develop the Project.

         4.2  Conditions  Precedent  to  Subsequent  Disbursals.  In addition to
compliance  with the  conditions  set  forth in  Section  4.1  hereof,  Lender's
obligation to make any dispersal of Loan Funds after the initial dispersal shall
be subject to satisfaction of the following conditions precedent:

         (a) Borrower  shall be in full  compliance  and shall not be in default
hereunder or under any of the Loan  Documents,  provided,  however,  that Lender
may,  in its  sole  discretion,  elect  to  make  advances  notwithstanding  the
existence  of a  default,  and any  advance so made shall be deemed to have been
made pursuant to the Loan Documents;

         (b) Neither the Project nor the Project Site nor any part thereof shall
have  been  materially   damaged,   destroyed,   condemned  or  threatened  with
condemnation  unless  Borrower  shall  show to  Lender's  satisfaction  that the
Project remains viable; and

         (c) No order or  notice  shall  been  made by, or  received  from,  any
governmental  agency having  jurisdiction,  stating that the  development of the
Project is or will be in violation  of any law,  ordinance,  code or  regulation
affecting the Project Site.

           4.3 Borrower's Draw Requests.  Subject to the conditions precedent in
Section 4. 1 (a),  Lender  agrees that it will make every  reasonable  effort to
disburse  the Loan  installments  within  ten (10) days  after  receipt  of each
Appropriate  Draw Request from Borrower  provided said Draw Request is submitted
on any Monday work day.

           4.4 Collateral.  Borrower has executed a Promissory Note of even date
with this  Loan  Agreement  to  evidence  its  promise  to repay  the Loan.  The
Promissory Note will be secured by a Mortgage on the Project Site.

                                    ARTICLE V

                            BORROWER'S LOAN COVENANTS

     5.1  General. From and after the date hereof and during the Term,  Borrower
covenants and agrees that it will:  (a)  Accomplish  the project and provide for
the  "Creation of Jobs" as set forth in Section 2.5. (b) Obtain and maintain the
insurance required herein.

     5.2  Payment of Obligations.  Borrower shall pay all indebtedness, taxes
and other obligations  pertaining to the Project or Project Site for which it is
liable before they shall become delinquent;  provided,  however,  Borrower shall
have the right to contest any such  obligations in good faith,  and shall not be
obligated  to pay any  such  obligation  so long as such  contest  has not  been
finally determined.

         5.3  Changes  to  Project . There  shall be no  material  change to the
Project  without the prior  written  approval of the Lender,  and, to the extent
that such approvals may be required, the appropriate governmental authorities.

         5.4  Compliance  with  Laws.  All work  performed  in  connection  with
Borrower's  development of the Project and Borrower's use of the proceeds of the
Loan shall comply with the Act and all other applicable laws, ordinances,  rules
and regulations of federal, state, county or municipal governments or agencies.

         5.5 Inspections.  The Lender and the Secretary or their representatives
shall have the right at all reasonable  times during regular business hours (and
at any time in the event of an  emergency)  to enter upon the  Project  Site and
inspect the Project to determine  that the same is in conformity  with this Loan
Agreement  and  all  laws,  ordinances,  rules  and  regulations  applicable  to
Borrower's  use of the  Loan  Funds.  The  Lender  and the  Secretary  or  their
representatives  shall have the  further  right,  from time to time,  to inspect
Borrower's  books and  records  relating  to  Borrower's  use of the Loan Funds.
Without  limiting  the  foregoing,  Borrower  shall  permit  the  Lender and the
Secretary or their  representatives  to examine and copy all books,  records and
other papers  relating to Borrower's use of the Loan Funds to insure  Borrower's
compliance with the Act and applicable provisions of 24 CFR Part 570. The Lender
agrees that subject to  provisions  of the  Oklahoma  Open Records Act, 51 Okla.
Stat.  1991,  ss. 24. A. 1 et seq.  and any other  applicable  law,  to keep all
information regarding Borrower and its operations  confidential,  and to provide
Borrower  with prior  notice and an  opportunity  to object to any  request  for
disclosure  of such  information,  other than to the  Secretary  or as otherwise
required by law.

         5.6 Notify the  Lender of  Litigation  or  Complaints.  Borrower  shall
immediately  notify  the  Lender  in  writing,  of  all  material   proceedings,
litigations or claims which may adversely affect  Borrower's rights hereunder or
any part of the  Project or Project  Site,  and of all  material  complaints  or
charges made by any governmental  authority affecting Borrower,  the Project, or
the Project Site which may require  material  changes in the  development of the
Project.

         5.7 Indemnify the Lender. Borrower shall indemnify and hold the Lender,
its elected and appointed officials and any employees,  harmless from all claims
and causes of actions of any person or entity which results in damages or injury
incurred by the Lender of whatsoever  nature  (excluding  any  consequential  or
incidental  damages or damages,  claims or causes of action due to the  Lender's
negligence or the Lender's breach of this Loan Agreement), caused by any acts or
omissions of Borrower and arising out of or in any way connected  with this Loan
Agreement, the Project Site and or the development of the Project or arising out
of Borrower's  breach of the  provisions of this Loan  Agreement,  including the
cost and defense thereof using counsel  approved by the Lender.  Notwithstanding
anything contained herein to the contrary,  the foregoing  indemnification given
by Borrower to the Lender shall not be effective or enforceable against Borrower
unless the Lender gives Borrower  written notice of any such claims or causes of
action of said person or entity made against the Lender  within ten (10) working
days of the  Lender's  knowledge  of such  claims or causes of  action,  and the
Lender  does not  commence  or enter into any  settlements  or  negotiations  of
settlement  with any  person  or  entity  relating  to the  matters  covered  by
Borrower's indemnification without Borrower's prior written consent. If Borrower
fails to defend or perform its  obligations  under this  indemnification  within
twenty (20) days after  written  request by the  Lender,  the Lender may settle,
commence,  or defend any action or  proceeding  purporting to affect the rights,
duties or  liabilities of the Lender,  the parties to the Loan Document,  or the
Project Site or the Project and Borrower shall pay all of the Lender's costs and
expense  incurred  thereby on demand.  This  section  shall  survive  execution,
delivery and performance of the Loan Documents.

         5.8  Further  Assistance.  Borrower  shall at any time and from time to
time upon request of the Lender take or cause to be taken any action or execute,
acknowledge,  deliver  or  record  any  further  documents,  opinions,  or other
instruments  which the Lender is required to do or obtain by HUD or by any other
federal,  state or  county  regulatory  agency  or which  the  Lender  feels are
required  to carry out the  intent of the  Lender  and  Borrower  under the Loan
Documents.

         5.9 Upon failure of Borrower to comply with any of the  foregoing  Loan
Covenants, the Lender may declare an Event of Default hereunder and exercise its
rights and remedies pursuant to Article VI of this Agreement.

                                   ARTICLE VI

                              DEFAULT AND REMEDIES

         6.1 Event of Default. The occurrence of any of the following events and
failure to cure such occurrence  within stated periods shall constitute an Event
of Default hereunder:

                  (a)  Any  breach  by  Borrower  of any of  the  covenants  and
         conditions of the Loan Documents, which breach is not cured by Borrower
         to the Lender's  reasonable  satisfaction  within twenty (20) days from
         the receipt of written notice thereof,  provided,  however, that in the
         event of a breach  or  default  by  Borrower  which is  outside  of the
         control of Borrower  and which  cannot be cured within said twenty (20)
         days,  Borrower  shall  have  commenced  to cure its  breach or default
         within said twenty (20) days and thereafter  diligently proceed to cure
         its breach or default; or

                  b) Any written representation,  warranty or disclosure made to
         the Lender by Borrower that proves to be materially false or misleading
         as of the  date  when  made,  whether  or not  such  representation  or
         disclosure appears in this Loan Agreement; or

                  (c) Any  material  change in the  development  of the  Project
         without the prior  written  approval of the Lender  which change is not
         corrected  or  substantially  corrected  within  twenty (20) days after
         receipt of written notice thereof from the Lender to Borrower; or

                  (d)  Failure by  Borrower  to defend,  indemnify  and/or  hold
         harmless the Lender pursuant to Section 5.7 to this Loan Agreement.

                  (e) Notwithstanding anything to the contrary contained herein,
         any  violation  by Borrower  of the Act-or any other laws,  ordinances,
         rules or regulations applicable to the

Project or  Borrower's  use of the Loan Funds shall  immediately  constitute  an
Event of Default hereunder.

         6.2  Remedies.  Upon the  occurrence of any Event of Default not timely
cured as provided herein, all of the outstanding  principle balance and interest
accrued  thereon,  if any, shall be  immediately  due and payable and the Lender
shall have recourse  against the collateral  pledged as described in Section 4.4
hereof to the extent such amount remains unpaid.

         6.3  Penalties.  In the event of a default,  interest  at the per annum
rate  established in the Note shall accrue on the total principal  amount of the
Loan then  outstanding,  from the date of the  occurrence  of such default until
payment as required hereunder shall have been made in full.

                                   ARTICLE VU

                                  MISCELLANEOUS

         7.1 No Waiver. No waiver of any default or breach by Borrower under the
Loan  Documents  shall be implied  from any  failure by Lender to take action on
account of such default if such default persists or is repeated,  and no express
waiver shall be operative  only for the time and to the extent  therein  stated.
Waivers  of any  covenant,  term or  condition  contained  herein  shall  not be
construed as a waiver of any  subsequent  breach of the same  covenant,  term or
condition.  The  consent or  approval  by Lender to, or of, any act by  Borrower
requiring  further  consent or  approval  shall not be deemed to waive or render
unnecessary the consent or approval to, or of, any subsequent similar act.

         7.2  Successors  and Assigns.  This Loan  Agreement is made and entered
into for the sole  protection  and  benefit of the Lender  and  Borrower,  their
successors  and assigns,  and no other person or persons shall have any right of
action hereunder.  The terms hereof shall inure to the benefit of the successors
and assigns of the parties hereto;  provided,  however, that Borrower's interest
hereunder cannot be assigned or otherwise  transferred without the prior written
consent of the Lender.

         7.3  Notices.  Any notice,  demand or request  required  under the Loan
Document  shall be given in writing at the addresses set forth below by personal
service, overnight courier providing a receipt, or registered or certified first
class mail, return receipt requested.  The addresses may be changed by notice to
the other party given in the same manner as provided  above.  If notice is given
by mail, it shall be deemed  received on the earlier of: (I) receipt as shown on
the return receipt, or (ii) three (3) days after its deposit in the U.S. Mail.

To Borrower:

Attention:

                           Tower Tech Inc.
                           P.O. Box 891810
                           Oklahoma City, OK 73189
                           Charles D. Whitsitt,
                           Chief Financial Officer

To The Lender:
                           The City of Oklahoma City
                           Planning Department
                           420 West Main
                           Oklahoma City, OK 73102

Attention:                 Garner Stoll, Planning Director

          7.4     Time. Time is of the essence of the Loan Document.

         7.5  Amendments.  No amendment,  modification,  or  termination  of any
provisions  of any of the Loan Document  shall in any event be effective  unless
the same shall be in writing and signed by parties.

         7.6 Headings. The article and section headings in no way define, limit,
extend or interpret the scope of the Loan Document or of any particular  article
or section thereof.

         7.7 Number and Gender.  When the context in which the words are used in
the Loan  Documents  indicate  that such is the  intent,  words in the  singular
number shall include the plural and  vice-versa.  References to any gender shall
also include the other gender if applicable under the circumstances

         7.8 Validity.  The  provisions of this Loan Agreement are severable and
if any word, sentence,  clause,  phrase, or other portion of this Loan Agreement
is, for any reason,  held invalid by any court of competent  jurisdiction,  such
portion shall be deemed a separate,  distinct and independent provision and such
holding  shall not affect the  validity of the  remaining  portions of this Loan
Agreement.

         7.9 Governing  Law.  This Loan  Agreement  shall be governed by and
construed in accordance  with the laws of the State of Oklahoma, except to the
extent federal law applies.

         7.10  Survival  of  Warranties.  All  agreements,  representations  and
warranties  made herein  survive the execution and delivery of the Loan Document
and the making of the Loan hereunder and continue in full force and effect until
the obligations of Borrower under the Loan Documents are satisfied in full.

         7. 11 Venue and  Forum.  In the event that any legal  action  should be
filed by either  party  against  the other,  the venue and forum for such action
shall be the District Court of Oklahoma County, Oklahoma.

         7.12  Attorney's  Fees.  In the event  Lender  shall bring an action to
enforce the terms and conditions of the Loan Documents,  Lender,  if prevailing,
shall be entitled to recover all of its costs and expenses,  including,  but not
limited to, reasonable attorney's fees as determined by the court.

         7.13 Duplicate  Originals.  The Loan Document shall be executed in more
than one  counterpart,  each of the  parties  hereto  shall  receive an original
counterpart; provided, however, that all originals together shall constitute one
and the same agreement.

         7.14 Other Federal Provisions. This Loan is subject to applicable
provisions contained in 24 CFR 570.

         IN WITNESS  WHEREOF,  Borrower and the Lender have  executed  this Loan
Agreement  as of the  date  first  written  above  by  and  through  their  duly
authorized representatives.

                            THE CITY OF OKLAHOMA CITY

                            ss/KIRK HUMPHREYS
                               --------------
                               Mayor

ATTEST:

ss/THOMAS P. HURLEY
-------------------

City Clerk

APPROVED as to form and legality this 7th day of November 1999.

                          ss/DARRELL SIMMONS
                          -------------------

                          Assistant Municipal Counselor

ATTEST:

                          TOWER TECH, INC.

                          By:ss/CHARLES D. WHITSITT
                             ---------------------

                          Chief Financial Officer

                          CORPORATE ACKNOWLEDGMENT

STATE OF OKLAHOMA
COUNTY OF OKLAHOMA

On this 1st day of November,  1999,  before me  personally  appeared  Charles D.
Whitsitt known to be the CFO of Tower Tech,  Inc.,  that executed the within and
foregoing  instrument,  and  acknowledged  said  instrument  to be the  free and
voluntary act and deed of said  corporation,  for the uses and purposes  therein
mentioned,  and on oath  stated  that  he/she was  authorized  to  execute  said
instrument and that the seal affixed is the corporate seal of said corporation.

In Witness  Whereof I have  hereunto  set my hand the day and year  first  above
written.

                                            ss/PATTY LEWIS POAG
                                            --------------------

                                            NOTARY PUBLIC

MY COMMISSION EXPIRES:     March 9, 2002

ATTACHMENT "A"

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