Document:

EXHIBIT 10.13

                             TOWERSTREAM CORPORATION
                                55 Hammerlund Way
                         Middletown, Rhode Island 02842

                                                                 January 5, 2007

Dan Schreiber
Granite Financial Group, LLC
12220 El Camino Real, Suite 400
San Diego, CA 92130

     RE: Selling Agreement

Dear Mr. Schreiber:

     The undersigned, Towerstream Corporation, a Delaware Corporation
("Corporation"), by this letter confirms its agreement (the "Agreement") with
Granite Financial Group, LLC, a Delaware limited liability company (the
"Broker-Dealer"), regarding the Broker-Dealer acting as a placement agent in
connection with an offering of up to $15 million of units consisting of shares
of common stock and warrants to purchase common stock (the "Units") under the
terms set forth in the Confidential Private Placement Memorandum dated December
21, 2006 and all exhibits and supplements thereto (the "Memorandum") prepared by
Corporation and delivered to you for distribution to the offerees. The Units are
to be offered on a "Best Efforts, Minimum- Maximum" basis with respect to all
Units. The Units will be offered and sold in accordance with 17 CFR 203.506
("Rule 506"), promulgated under Regulation D of the Securities Act 1933, as
amended.

     Upon execution and delivery of subscription documents (the "Subscription
Documents"), which shall be in the form of the Subscription Documents included
in the Memorandum, the subscribers for Units shall, upon acceptance thereof by
Corporation (which acceptance shall be in Corporation's sole discretion), become
Unit Holders pursuant to the terms set forth in the Memorandum. The offering of
the Units shall begin when the Memorandum is first made available to you by
Corporation and shall continue until the termination date, and through the end
of any extension, unless the offering has been terminated as of any earlier time
(the "Subscription Period").

     SECTION 1. APPOINTMENT OF AGENT. On the basis of the representations,
warranties and covenants contained in this Agreement, but subject to the terms
and conditions herein set forth, you are hereby appointed as non-exclusive
selling agent of Corporation for the Units offered under the Memorandum. The
appointment shall continue until the earliest of (i) 120 days from the date of
this Agreement, or (ii) the termination of the Subscription Period, or (iii) the
sale of all of the Units, or (iv) the termination of the offering of Units by
Corporation for any reason, whichever occurs first. Subject to the performance
by Corporation of all of its obligations under this Agreement, and to the
completeness and accuracy of all of its representations and warranties contained
in this Agreement, you agree to use your best efforts during the Subscription
Period to find subscribers for the Units.

     SECTION 2. DEFINITIONS. Certain terms used herein are defined in the
Memorandum and shall have the same meanings given therein.

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Page 2

     SECTION 3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF CORPORATION.
Corporation represents, warrants and covenants, to the best of its knowledge,
that:

     a. Corporation is a corporation duly and validly organized and in good
     standing under the laws of the State of Delaware and has full power and
     authority to conduct the business described in the Memorandum.

     b. Corporation will deliver to you a reasonable number of copies of the
     Memorandum, and the information made available to each offeree pursuant to
     subsection 3(i) hereof shall be sufficient to comply with, and conform to,
     the requirements of Rule 506.

     c. All action required to be taken by Corporation to offer and sell the
     Units to qualified subscribers has been or will be taken.

     d. Upon payment of the subscription amount specified in the Subscription
     Documents, acceptance by Corporation of the subscriptions from qualified
     subscribers (which acceptance shall be at the sole discretion of
     Corporation), and delivery by the subscribers for Units of such additional
     documents as may reasonably be required by Corporation, such subscribers
     will become Unit Holders.

     e. During the Subscription Period, the Memorandum will not contain any
     untrue statement of a material fact or omit to state a material fact
     necessary in order to make the statements made therein, in the light of the
     circumstances under which they were made, not materially misleading.

     f. This Agreement has been duly and validly authorized, executed, and
     delivered by or on behalf of Corporation and constitutes a valid and
     binding agreement of Corporation.

     g. Execution by Corporation of a subscriber's Subscription Documents will
     be duly and validly authorized by or on behalf of Corporation and will
     constitute a valid and binding agreement of Corporation.

     h. The execution and delivery of this Agreement and the incurrence of the
     obligations set forth herein and the consummation of the transactions
     contemplated in this Agreement and the Memorandum will not constitute a
     breach or default under:

          (i)  any instruments by which Corporation is bound; or

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Page 3

          (ii) any order, rule or regulation (applicable to Corporation) issued
               by any court, governmental body or administrative agency having
               jurisdiction over Corporation.

     i. Corporation shall make available, during the Subscription Period and
     prior to the sale of any Units, to each purchaser or his purchaser
     representative(s) or both:

          (i) such information (in addition to that contained in the Memorandum)
          concerning the offering of Units, Corporation, and any other relevant
          matters, as Corporation possesses or can acquire without unreasonable
          effort or expense; and

          (ii) the opportunity to ask questions of, and receive answers from,
          Corporation concerning the terms and conditions of the offering of the
          Units, and to obtain any additional information, to the extent
          Corporation possesses the same or can acquire it without unreasonable
          effort or expense, necessary to verify the accuracy of the information
          furnished to the purchaser or his purchaser representative(s).

     j. With respect to those activities undertaken by it, Corporation has
     endeavored to ensure that the offering and sale of Units complies, in all
     respects, with the requirements of the Securities Act of 1933, as amended,
     and the Securities Exchange Act of 1934, as amended, and the securities or
     "blue sky" laws of any state or jurisdiction in which an offer and/or sale
     takes place.

     k. There is no litigation or proceeding at law or in equity before any
     federal or state authority against Corporation wherein an unfavorable
     decision, ruling, or finding would materially and adversely affect the
     business, operations or financial condition or income of Corporation or any
     proposed Corporation investment, and neither the execution and delivery of
     this Agreement, the consummation of the transactions herein contemplated,
     nor the fulfillment of or compliance with the terms hereof will conflict
     with, or result in a breach of, any of the terms, provisions, or conditions
     of any agreement or instrument to which Corporation is a party.

     l. Corporation will endeavor in good faith to qualify, or assist you in
     qualifying, the Units for offer and sale, or to establish, or assist you in
     establishing, the exemption of the offer and sale of the Units from
     qualification or registration under the applicable securities or "blue sky"
     laws of such jurisdictions as you may reasonably designate, and will
     promptly notify you, orally or in writing (but if orally then prompt
     written confirmation shall be delivered to you), as each jurisdiction is so
     qualified or as an exemption from registration or qualification is
     established therein; provided, however, that Corporation shall not be

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     obligated to do business or to qualify as a dealer in any jurisdiction in
     which it is not so qualified.

     m. Corporation will pay all expenses in connection with the printing and
     delivery to you in reasonable quantities of copies of the Memorandum and
     the qualification of the Units under the securities or "blue sky" laws.

     n. As compensation for your services, Corporation will pay you a sales
     commission equal to (i) seven percent (7%) of the gross proceeds received
     by Corporation from the Units placed by you and (ii) warrants to purchase a
     number of shares of common stock equal to five percent (5%) of the number
     of shares included within the Units placed by you, payable pursuant to the
     terms of the Memorandum.

     o. If any event relating to or affecting Corporation shall occur during the
     Subscription Period, as a result of which it is necessary, in the opinion
     of your counsel and counsel to Corporation, to amend or supplement the
     Memorandum so that it will not contain an untrue statement of a material
     fact or omit to state a material fact necessary in order to make the
     statements therein, in light of the circumstances under which they are
     made, not misleading, Corporation shall forthwith prepare and furnish to
     you a reasonable number of copies of an amendment or amendments of, or
     supplement or supplements to, the Memorandum, which you shall promptly
     deliver to all offerees then being solicited. For purposes of this
     subsection o., Corporation will furnish such information with respect to
     Corporation as you may from time to time reasonably request.

     p. Corporation will deliver to you such reports and documents as
     Corporation is required, under the terms of the Memorandum or any document
     referred to therein, to furnish to its prospective investors.

     SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BROKER-DEALER.
The Broker-Dealer represents, warrants and covenants, to the best of its
knowledge, that:

     a. It, or any person acting on its behalf, will not offer any of the Units
     for sale, or solicit any offers to subscribe for or buy any Units, or
     otherwise negotiate with any person with respect to the Units, on the basis
     of any communications or documents, except the Memorandum, the information
     provided by Corporation pursuant to Section 3(i), or any other documents
     and any transmittal letter reasonably satisfactory in form and substance to
     Corporation and counsel to Corporation.

     b. It, or any person acting on its behalf, shall not use any form of
     general solicitation or general advertising in the course of any offer or
     sale of the Units including, but not limited

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Page 5

     to:

          (i) any advertisement, article, notice or other communication
          published in any newspaper, magazine, website, or similar media or
          broadcast over television or radio; and

          (ii) any seminar or meeting whose attendees have been invited by any
          general solicitation or general advertising.

     c. It, or any person acting on its behalf, shall solely make offers to sell
     Units to, solicit offers to subscribe for or purchase any Units from, or
     otherwise negotiate with respect to the Units with, persons whom it has
     reasonable grounds to believe and does believe are "accredited investors"
     within the meaning of 17 CFR 230.501(a).

          In making or soliciting such offers, or so negotiating, Broker-Dealer
     will comply with the provisions of the Securities Act of 1933, as amended,
     the Securities Exchange Act of 1934, as amended, and the securities or
     "blue sky" laws of the jurisdiction in which it makes or solicits such
     offers, or so negotiates.

     d. It will exercise reasonable care to assure that the purchasers are not
     underwriters within the meaning of Section 2(11) of the Securities Act of
     1933, as amended. In that connection, it will:

          (i) Make reasonable inquiry to determine that each purchaser is
          acquiring the Units for his own account; and

          (ii) Obtain from the purchaser a signed written agreement (contained
          in the Subscription Documents) that the Units will not be sold without
          registration under the Securities Act of 1933, as amended, unless an
          opinion of counsel that an exemption therefrom is available,
          satisfactory in form and substance to Corporation or counsel, is
          delivered in accordance with such agreement.

     e. It shall furnish Corporation with information in sufficient detail (in
     the form of the Investor Questionnaire, a copy of which is included in the
     Memorandum), with respect to each purchaser of Units, in order to
     demonstrate to Corporation that such purchaser satisfies the requirements
     of Rule 506, as outlined in Section 4(c) above.

     f. If a prospective purchaser uses or consults a purchaser representative
     (as that term is defined in 17 CFR 230.501(h)) in connection with the
     offering of the Units, it will obtain and deliver to Corporation, prior to
     the closing of the offering of the Units, the prospective

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     purchaser's written acknowledgment that he has used such person(s) in
     connection with evaluating the merits and risks of the prospective
     investment and such representative's written consent so to act, as well as
     a description of the education and experience of such representative(s).

     g. It will offer and sell the Units only in those jurisdictions in which
     it, or any other person or entity acting in its behalf, is properly
     registered, and it will comply with all laws, rules and regulations related
     to its activities on behalf of Corporation pursuant to this Agreement.

     h. It is a securities broker-dealer registered and in good standing with
     the Securities and Exchange Commission and is a member of the NASD.

     i. This Agreement has been duly and validly authorized, executed, and
     delivered by or on behalf of the Broker-Dealer and constitutes a valid and
     binding agreement of the Broker-Dealer.

     SECTION 5. CONDITIONS OF THE OBLIGATIONS OF CORPORATION. The obligations of
Corporation under this Agreement are subject to the accuracy of and compliance
with your representations, warranties and covenants set forth in Section 4, and
to the performance by you of your obligations hereunder.

     SECTION 6. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY.

     All representations, warranties and agreements by either Corporation or
Broker-Dealer contained in this Agreement shall remain operative and in full
force and effect, and shall survive the closing of the offering of the Units.
Upon termination of this Agreement, Corporation shall have no further
obligations to Broker-Dealer other than with respect to fees payable to
Broker-Dealer as provided herein.

     SECTION 7. INDEMNIFICATION.

          (a) Corporation agrees to indemnify, defend and hold Broker-Dealer
     harmless against any and all loss, liability, damage and expense
     whatsoever, whether or not resulting in any liability, that may be incurred
     under applicable securities laws, at common law, or otherwise and which is
     based upon or arises out of:

               (1) any untrue statement or alleged untrue statement of a
          material fact contained in the Memorandum or the omission or alleged
          omission from the Memorandum of a material fact necessary in order to
          make the statements

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Page 7

          made therein, in light of the circumstances under which they were
          made, not misleading;

               (2) the offer and/or sale by Corporation, or anyone acting on its
          behalf, of Units (unless due to the bad faith or gross negligence of
          the Broker-Dealer); or

               (3) any breach of any representation, warranty or covenant made
          by Corporation in this Agreement.

          (b) The Broker-Dealer agrees to indemnify, defend and hold Corporation
     and its officers, directors, shareholders and agents harmless against any
     and all loss, liability, damage and expense whatsoever, whether or not
     resulting in any liability, that may be incurred under applicable
     securities laws, at common law, or otherwise and which is based upon or
     arises out of:

               (1) any violation by Broker-Dealer or its agents of the
          Securities Act of 1933, as amended, the Securities Exchange Act of
          1934, as amended, or any state securities statutes, unless such
          violation is attributable to actions, misrepresentations or omissions
          of Corporation; or

               (2) any breach of any representation, warranty or covenant made
          by Broker-Dealer in this Agreement.

          (c) In any legal or regulatory action or claim brought against
     Corporation or Broker-Dealer or their agents, Corporation and the
     Broker-Dealer shall have the rights and duties set forth in this Section 7.
     The indemnification provisions included in this Section 7 shall include,
     but not be limited to, recovery of and payment of reasonable legal or other
     expenses incurred by Broker-Dealer or Corporation in connection with
     defending such actions and claims.

          (d) Within fourteen (14) calendar days after a claim or action is
     brought or asserted against Corporation or the Broker-Dealer or both, which
     in the opinion of either is subject to the indemnification provisions
     contained in this Section 7., the party seeking indemnification (the
     "Indemnitee") shall notify, in writing, the party from whom indemnification
     is sought (the "Indemnitor") of the existence of the claim or action.
     Indemnitor shall assume the defense of the claim or action by employing
     counsel for the Indemnitee, and shall thereafter be responsible for the
     payment of all legal fees and expenses incurred in connection with such
     defense. In the event that a claim or action is brought or asserted against
     Corporation and the Broker-Dealer, jointly, Corporation and the Broker-

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     Dealer shall make a good faith effort determine whether the claim or action
     can be defended jointly or if potential conflicts exist which require that
     separate legal counsel be employed for Broker-Dealer and Corporation. In
     such case, if Corporation and the Broker-Dealer seek indemnification from
     the other, each shall employ separate counsel to represent them and shall
     be responsible for the payment of all expenses associated with employment
     of such counsel, subject to the right of recovery of such expenses as set
     forth below in this subparagraph (d). IF EITHER CORPORATION OR
     BROKER-DEALER SEEK INDEMNIFICATION FROM THE OTHER UNDER THE PROVISIONS OF
     THIS SECTION 7., AND THE PARTY FROM WHOM INDEMNIFICATION IS SOUGHT DECLINES
     TO ASSUME DEFENSE OF THE ACTION OR CLAIM, THE PARTY SEEKING INDEMNIFICATION
     SHALL HAVE A RIGHT OF RECOVERY AGAINST THE PARTY FROM WHOM INDEMNIFICATION
     IS SOUGHT FOR ALL LOSSES, LIABILITIES, DAMAGES AND EXPENSES INCURRED IN THE
     DEFENSE OF THE ACTION OR CLAIM, INCLUDING ALL ACTUAL ATTORNEYS' FEES AND
     COSTS INCURRED, IN THE EVENT THAT THE DEFENSE OF THE ACTION OR CLAIM IS
     SUCCESSFUL AND THERE ARE NO FINDINGS OF WRONGDOING ON THE PART OF THE PARTY
     SEEKING INDEMNIFICATION.

     SECTION 8. RELIEF. The Broker-Dealer agrees that a breach or threatened
breach on its part of any agreement contained in this Agreement will cause such
damage to Corporation as will be irreparable, and, for that reason, the
Broker-Dealer further agrees that Corporation shall be entitled as a matter of
right to an injunction, by any court of competent jurisdiction, restraining any
further violation of such covenants by the Broker-Dealer or its employees,
partners, officers or agents. The right of injunction shall be cumulative and in
addition to whatever other remedies Corporation may have, including,
specifically, recovery of damages. The Broker-Dealer also agrees to pay
reasonable attorney's fees incurred by Corporation in successfully proving that
the Broker-Dealer breached any of the terms of this Agreement.

     SECTION 9. NOTICES. All communications under this Agreement shall be in
writing, and, if sent to you, shall be mailed, delivered or telegraphed and
confirmed to you at the address initially set forth above or as changed by you
in a written notice to Corporation, or if sent to Corporation, shall be mailed,
delivered or telegraphed and confirmed to it at the address set out in the
letterhead above, with a copy to Harvey Kesner, Esq., Haynes and Boone, LLP, 153
East 53rd Street, New York, New York 10022.

     SECTION 10. PARTIES. This Agreement shall inure to the benefit of, and be
binding upon, you, any person which controls you, and your successors, and upon
Corporation and its representatives and successors. This Agreement and its
conditions and provisions are for the sole and exclusive benefit of the parties
and their representatives and successors, and for the benefit of no other
person, firm or corporation.

     SECTION 11. RELATIONSHIP OF PARTIES. It is not the intention of the parties
to create, nor shall this Agreement be construed as creating, a partnership,
joint venture, agency relationship or

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Page 9

association other than as specifically set forth herein, or to render the
parties liable as partners, co-venturers, or principals. In their relations with
each other under this Agreement, the parties shall not be considered fiduciaries
or to have established a confidential relationship other than as specifically
set forth herein but rather shall be free to act on an arm's length basis in
accordance with their own respective self-interest, subject, however, to the
obligation of the parties to act in good faith in their dealings with each other
with respect to activities hereunder.

     SECTION 12. ENTIRE AGREEMENT. This Agreement evidences the entire agreement
between Corporation and the Broker-Dealer, and represents a merger of all
preceding agreements between the parties hereto pertaining to the subject matter
hereof.

     SECTION 13. SEVERABILITY OF PROVISIONS. If one or more of the provisions of
this Agreement or any application thereof shall be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions hereof and any application thereof shall in no way be
affected or impaired.

     SECTION 14. GOVERNING LAW; JURISDICTION. This Agreement shall be governed
by and construed in accordance with the internal laws of the State of Delaware,
without regard to conflicts of laws or principles thereof. Each of the parties
hereto agrees irrevocably consents to the jurisdiction and venue of the federal
and state courts located in New York City.

     SECTION 15. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

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     If the foregoing is in accordance with your understanding of our agreement,
kindly sign and return to us one copy of this Agreement, whereupon this
instrument will become a binding agreement upon you and Corporation in
accordance with its terms.

                                        Very truly yours,

                                        TOWERSTREAM CORPORATION,
                                        a Delaware Corporation

                                        By:    /s/ Jeff Thompson
                                            ------------------------------------
                                        Name: Jeff Thompson
                                        Title: President

     The foregoing Agreement is hereby confirmed and accepted as of the date
first set out above.

                                        GRANITE FINANCIAL GROUP, LLC

                                        By:    /s/ Daniel J. Schreiber
                                            ------------------------------------
                                            Name:  Daniel J. Schreiber
                                            Title: CEO

                                        Address: _______________________________

                                                 _______________________________

                                                 _______________________________EXHIBIT 10.14

                         PALLADIUM CAPITAL ADVISORS, LLC
                           230 PARK AVENUE, SUITE 539
                            NEW YORK, NEW YORK 10169

                      Tel (646) 485-7297 Fax (646) 390-6328

                          Email jp@palladiumcapital.com

                                                                 January 4, 2007

Jeff Thompson
President and CEO
Towerstream Corporation
55 Hammerlund Way
Middletown, Rhode Island 02842

     Re: Placement Agent Agreement

Dear Jeff:

This letter agreement (the "Agreement") confirms our understanding with respect
to the engagement by Towerstream Corporation (the "Company") of Palladium
Capital Advisors, LLC ("PCA") as placement agent in connection with the sale of
up to $20 million of equity or equity-linked securities on a best efforts basis
through a private placement or similar unregistered transaction on terms that
have been or will be determined by Company and its advisors as set forth in the
Company's Confidential Private Placement memorandum dated December 21, 2006, as
may be revised by the Company from time to time (the "Transaction") to investors
(the "Investors"). For purposes hereof, the term "Transaction" also includes a
convertible loan or other type of investment convertible into or exchangeable
for or otherwise linked to the equity of the Company. The term of the Agreement
(the "Term") shall be for a period of twelve (12) months from the date hereof or
until earlier terminated by either party as described below (see Section 7
(Termination)).

1.   Scope. The Company hereby engages PCA to act as placement agent ("Placement
     Agent") during the Term in connection with the Transaction(s). The goal of
     the engagement is to raise up to $20 million in capital for the Company to
     be used for growth opportunities and general working capital purposes. PCA
     shall assist the Company and shall, on behalf of the Company, contact such
     potential investors as PCA and the Company agree in advance. PCA shall
     assist the Company in effecting the Transaction(s), and shall use its best
     efforts to offer and sell the securities in accordance with this Agreement.
     PCA will market to those, and only those, investors as included in Addendum
     A, as may be amended by mutual agreement of the parties from time to time,
     and the Company shall retain the right, in its sole discretion, to accept
     or reject investors identified by PCA. PCA's engagement by the Company
     shall be exclusive solely as to the potential investors included in
     Addendum A. PCA shall receive written approval from the Company prior to
     marketing to any other investors who have not been included on Addendum A.
     It is anticipated that the Company shall also engage its own legal counsel
     and may require the services of an accounting firm.

2.   Company Information. The Company shall cooperate with PCA in connection
     with its financial review and analysis of the Company and shall provide PCA
     with such information concerning the

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 2 of 6

     Company as PCA deems necessary or appropriate for such review and analysis
     (collectively, the "Information").

     PCA shall keep in confidence and shall use only for the purposes of
     performing its obligations pursuant to this Agreement, and shall not,
     without the Company's consent, disclose to any person any non-public
     Information furnished by the Company to PCA except (a) its own counsel and
     other advisors on a confidential basis, (b) to the Investors approved by
     the Company in accordance with the terms hereof and (c) to such other
     persons as such counsel has advised is required by applicable law, and then
     only after informing the Company of such legal requirement and providing
     the Company sufficient time to seek a protective order or otherwise prevent
     or restrict such disclosure.

     All Information provided by the Company shall be accurate and complete in
     all material respects and shall not contain any untrue statement of a
     material fact or omit to state any material fact necessary to make the
     statements therein, in light of the circumstances under which they were
     made, not false or misleading. PCA does not assume responsibility for the
     accuracy or completeness of the Information, including but not limited to
     any disclosure materials related to the Transaction(s) except for such
     information that is provided in writing by PCA to the Company that is
     independently produced by PCA and not based on Information provided by the
     Company or information available from generally recognized public sources.
     The Company acknowledges and agrees that PCA will rely primarily on the
     Information and on information available from generally recognized public
     sources in performing its services hereunder, without having any obligation
     to independently verify the same and that PCA has no obligation to
     undertake an independent evaluation, appraisal or physical inspection of
     any assets or liabilities of the Company. If at any time prior to the
     completion of a Transaction an event occurs which would cause the
     Information (as supplemented or amended) to contain an untrue statement of
     a material fact or to omit to state a material fact necessary in order to
     make the statements therein, in light of the circumstances under which they
     were made, not misleading, the Company will notify PCA immediately of such
     event.

3.   Fees. The Company shall pay PCA the following amounts:

     a.   Private Placement Fee. PCA shall be paid upon consummation of the
          Transaction(s) a transaction fee, payable in cash, of 7.0% of the
          Gross Proceeds (as defined below) from the capital received, directly
          or indirectly, by the Company solely from investors identified on
          Addendum A, as may be amended by mutual agreement of the parties from
          time to time, with respect to a Transaction (the "Transaction Fee"),
          provided that in the event that any portion of such Transaction(s)
          consists of debt (or similar) financing, then the foregoing
          Transaction Fee with respect to such debt financing shall be adjusted
          to 4.0% of the Gross Proceeds. For purposes hereof, "Gross Proceeds"
          shall mean the fair market value of all of the consideration
          (including, without limitation, cash, securities, other assets and
          contingent payment amounts actually paid, plus debt and liabilities
          assumed (including, without limitation, indebtedness for borrowed
          money, pension liabilities and guarantees), license fees, royalty
          fees, joint venture interests or other property, obligations or
          services, but excluding payments made to exercise any convertible
          securities) received by the Company or any of its security holders in
          connection with any Transaction, directly or indirectly, from the sale
          or exchange of the Company's equity securities issued in a Transaction
          before the deduction of expenses related to such Transaction,
          including the fee payable to PCA.

     b.   Placement Warrants. Upon consummation of a Transaction, the Company
          will issue to PCA five-year stock purchase warrants (the "Placement
          Agent Warrants"), equivalent to 5% of the shares issued in the
          Transaction to investors included in Addendum A, taking into

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 3 of 6

          consideration any increase in shares under a ratchet or similar
          provision pursuant to which the number of shares initially purchased
          is subsequently increased, with an "exercise price" equal to 100% of
          the purchase price of the shares issued in the Transaction. The
          exercise price is defined as the price at which PCA may convert the
          Placement Agent Warrants into common shares of the Company. In
          addition to the exercise price, PCA shall pay a "warrant cost" of
          $0.001 per share (one-tenth of a cent) to the Company upon issuance of
          the Placement Agent Warrants.

          A separate Placement Agent Warrant Agreement shall be prepared after
          consummation of the Transaction, and shall take the form of PCA's
          standard warrant agreement, but shall be acceptable to the Company,
          which contains the following terms, among others: the Placement Agent
          Warrants are not transferable by the warrantholder other than to a
          limited number of employees and affiliates of PCA subject to
          compliance with all applicable securities laws; the Placement Agent
          Warrants may be exercised as to all or any lesser number of shares of
          equity securities commencing immediately after the date of the
          consummation of the Transaction; the Placement Agent Warrants may be
          exercised on a cash-less basis if not registered within 1 year of the
          closing of the Transaction and be redeemable on the same terms as the
          Transaction warrants; and the warrant agreement will contain
          provisions for change of control, weighted average based anti-dilution
          and customary piggy-back registration rights.

     c.   In the event consideration is to be paid in whole or in part by
          installment payments, the portion of PCA's fee relating thereto shall
          be calculated and paid when and as such installment payments are made.

     d.   Consideration received by the Company paid in whole or in part in the
          form of securities or other noncash consideration will be valued at
          its fair market value, as reasonably determined by an independent
          third party to be mutually agreed upon by the Company and PCA, as of
          the day prior to the closing of the Transaction (or later date on
          which a contingent payment is made), provided, however, that if such
          consideration consists of securities with an existing trading market,
          such securities will be valued at the average of the last sales price
          for such securities on the five trading days prior to the date of the
          closing (or later date on which a contingent payment is made).

     e.   The foregoing fees (including the Placement Agent Warrants) are
          payable for any Transaction that occurs during the Term or within 12
          months thereafter with respect to investors included in Addendum A.

4.   Expenses. In addition to the Transaction Fee and the Warrants, the Company
     agrees to reimburse PCA, for its reasonable expenses incurred in connection
     with this engagement approved in advance in writing by Company. These
     expenses generally include travel costs and other customary expenses for
     this type of transaction. Such expenses shall not exceed $25,000 in the
     aggregate without the prior written consent of the Company. Legal fees
     incurred by PCA to prepare, review and finalize this letter agreement will
     not be reimbursable by the Company.

5.   Advertisements. Upon a closing of a Transaction, the Company agrees that
     PCA has the right to place advertisements in financial and other newspapers
     and journals (whether in print or on the internet) at its own expense
     describing its services to the Company hereunder, provided that the Company
     has the right to review, comment on and approve all such advertisements
     prior to publication.

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 4 of 6

6.   Indemnification. The Company shall indemnify PCA, its agents and affiliates
     in accordance with Annex A.

7.   Termination. This Agreement may be terminated at any time by either party
     upon 5 days written notice to the other party, effective upon receipt of
     written notice to that effect by the other party, or automatically upon
     consummation of the Transaction. Upon termination, the Company shall have
     no further obligation to PCA other than with respect to fees payable to PCA
     as provided herein, provided that the provisions of Sections 3 through 9,
     inclusive, and PCA's obligation to preserve the confidential information
     provided to it by Company for an indefinite period, shall survive any such
     termination.

8.   Venue. The Company and PCA agree that any legal suit, action, or proceeding
     arising out of or relating to this Agreement and/or the transactions
     contemplated by this Agreement shall be instituted exclusively in the state
     or federal courts located in New York County, New York. The parties further
     irrevocably consent to the service of any complaint, summons, notice or
     other process relating to any such action or proceeding by delivery thereof
     to such party by hand or by registered or certified mail in the manner
     prescribed in Section 9(f) hereof. The parties further irrevocably consent
     that any judgment rendered by such court in the State of New York may be
     entered in other courts having competent jurisdiction thereof. Without in
     any way limiting the indemnification provisions in Annex A below, the
     prevailing party shall have the right to recover any costs, including
     attorneys' fees, in the event of any action brought to enforce any of the
     terms or provisions of this Agreement. The parties agree that service may
     be made by overnight mail at its address set forth herein in any action to
     enforce any of the provisions herein. Without in any way limiting the
     indemnification provisions in Annex A below, any action arising under or
     related to this Agreement for compensation must be brought prior to 6
     months following the later of (i) the closing of the Transaction, (ii)
     notice of the claim giving rise to such action, or (iii) termination of
     this Agreement, or such action shall be barred as untimely.

9.   Miscellaneous.

     a.   Successors and Assigns. This Agreement shall be binding on and inure
          to the benefit of each party's agents, affiliates, successors and
          assigns, but may not be assigned without the prior written consent of
          the other party.

     b.   Governing Law. This Agreement shall be governed by and construed in
          accordance with the internal laws of the State of New York, without
          regard to conflicts of laws or principles thereof.

     c.   Amendment. This Agreement may not be modified or amended except in
          writing signed by the parties hereto.

     d.   PCA's Obligations. The obligations of PCA and the Company hereunder
          are solely corporate obligations, and no officer, director, employee,
          agent, member, shareholder, or controlling person shall be subject to
          any personal liability whatsoever to any person, nor will any such
          claim be asserted by or on behalf of PCA or the Company or any of
          their respective affiliates. The Company acknowledges and agrees that
          PCA is acting as an independent contractor under this Agreement and
          that the engagement of PCA is not intended to confer rights on any
          person or entity other than the Company and PCA. Nothing contained in
          this Agreement shall limit or restrict the

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 5 of 6

          right of PCA or of any member, employee, agent or representative of
          PCA, to be a member, shareholder, partner, director, officer,
          employee, agent or representative of, or to engage in, any other
          business, whether of a similar nature or not, nor to limit or restrict
          the right of PCA to render services of any kind to any other
          corporation, company, firm, individual or association. PCA is a
          registered broker-dealer in good standing with the SEC under the
          Securities Act of 1934 and in all jurisdictions in which the nature of
          its activities or the substance of its actions would require such
          registration or qualification pursuant to the blue-sky laws of such
          jurisdiction. PCA will comply with all laws, rules and regulations
          related to its activities on behalf of Company pursuant to this
          Agreement. All consents, authorizations, and approvals necessary or
          appropriate for PCA to undertake its obligations set forth in this
          Agreement have been obtained by PCA prior to execution of this
          Agreement and PCA shall immediately use its best efforts to secure
          investors for the Company as set forth herein upon the expectation for
          a closing on or prior to January 30, 2007.

     e.   Entire Agreement. This Agreement embodies the entire agreement and
          understanding of the parties hereto with respect to the subject matter
          hereof and supersedes any and all prior agreements, arrangements and
          understandings whether written or oral, relating to matters provided
          herein. This Agreement is entered into by each of the parties hereto
          without reliance on any statement, representation, promise, inducement
          or agreement not expressly contained within this Agreement. Except as
          set forth in Annex A hereof, nothing in this Agreement is intended to
          confer upon any other person (including the stockholders, employees or
          creditors of the Company) any rights or remedies hereunder or by
          reason hereof. In case any provision of this Agreement shall be
          invalid, illegal or unenforceable, the validity, legality and
          enforceability of the remaining provisions of this Agreement shall not
          in any way be affected or impaired thereby.

     f.   Notices. All notices or communications hereunder shall be in writing
          and mailed, delivered or telegraphed as follows:

               If to the Company:   Jeff Thompson
                                    Tower Stream Corp
                                    32 Sixth Ave.
                                    New York, NY 10013

               with a copy to:      Harvey Kesner, Esq.
                                    Haynes and Boone LLP
                                    153 East 53 Street
                                    New York, NY 10022

               If to PCA:           Palladium Capital Advisors, LLC
                                    230 Park Avenue, Suite 539
                                    New York, NY 10169
                                    Attn: Joel Padowitz, Chief Executive Officer

     g.   Opinions and Advice. PCA is acting as financial advisor and is not an
          expert on, and cannot render opinions regarding, legal, accounting,
          regulatory or tax matters. The Company should

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 6 of 6

          consult with its other professional advisors concerning these matters
          before undertaking the proposed Transaction. PCA will not have any
          rights or obligations in connection with the sale and purchase of the
          securities contemplated by this Agreement except as expressly provided
          in this Agreement. In no event will PCA be obligated to purchase the
          securities for its own account or for the accounts of its customers.

                            [signature page follows]

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 7 of 6

If the foregoing correctly sets forth your understanding and intentions, please
so indicate by signing and returning to us the enclosed copy of this letter.

                                        Sincerely,

                                        Palladium Capital Advisors, LLC

                                        By:   /s/ Joel Padowitz
                                            ------------------------------------
                                            Joel Padowitz,
                                            Chief Executive Officer

APPROVED AND ACCEPTED

ON ________________, 2007:

Towerstream Corporation

By:   /s/ Jeff Thompson
   ----------------------------------
Print name: Jeff Thompson
Title: President

                         [Addendum A and Annex A follow]

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 8 of 6

                                  ADDENDUM A -

ADAR
Alexandra
Alpha Capital
Axiom
BA Ventures
Bain Capital
Baker Brothers
Citadel
Citigroup
CMS Capital
Cramer Rosenthal
CrossLink
Crosslink
CS Asset Management
DKR Capital
Empire Capital
Harborview
Highbridge Capital
Insight Capital
J Goldman
Kayne Anderson
Langley
MicroCapital
Och-Ziff
Perry Capital
RH Capital
Sandell
SC Fundamental
SDS
SF Capital
Tracer Capital
Trafalette
Walden VC
Walker Smith
Westmont Capital
Xerion Capital

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                     Page 9 of 6

ANNEX A

The Company agrees that it will indemnify and hold harmless PCA, its affiliates,
and their respective directors, members, officers, employees, agents,
representatives and controlling persons (collectively "PCA" and each such entity
or person being an "INDEMNIFIED PARTY") from and against any and all losses,
claims, damages and liabilities, joint or several, as incurred, to which such
Indemnified Party may become subject, and related to or arising out of the
engagement of PCA hereunder, the activities performed or omitted by or on behalf
of an Indemnified Party pursuant to this Agreement, the Transactions
contemplated thereby or PCA's role in connection therewith; provided that the
Company will not be liable to the extent that any loss, claim, damage or
liability is found in a final judgment (not subject to further appeal) by a
court to have resulted primarily from actions taken or omitted to be taken by
PCA in bad faith or from PCA's gross negligence or willful misconduct in
performing the services described above. The Company also agrees to reimburse
any Indemnified Party for all expenses (including reasonable counsel fees and
disbursements) as they are incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim, or any action,
investigation, suit or proceeding arising therefrom, whether or not such
Indemnified Party is a party, whether or not liability resulted and whether or
not such claim, action or proceeding is initiated or brought by or on behalf of
the Company. The Company also agrees that no Indemnified Party shall have any
liability (whether direct or indirect, in contract or tort or otherwise) to the
Company or its security holders or creditors related to or arising out of the
engagement of PCA pursuant to, or the performance by PCA of the services
contemplated by, this Agreement except to the extent that any loss, claim,
damage or liability is found in a final judgment (not subject to further appeal)
by a court to have resulted primarily from actions taken or omitted to be taken
by PCA in bad faith or from PCA's gross negligence or willful misconduct.

If the indemnification provided for in this Agreement is for any reason held
unenforceable, the Company agrees to contribute to the losses, claims, damages
and liabilities, as incurred by any Indemnified Person, for which such
indemnification is held unenforceable in such proportion as is appropriate to
reflect the relative benefits to the Company, on the one hand, and PCA, on the
other hand, of the Transaction (whether or not the Transaction is consummated).
The Company agrees that for the purposes of this paragraph the relative benefits
to the Company and PCA of the Transaction shall be deemed to be in the same
proportion that the total value of the Transaction or contemplated Transaction
by the Company as a result of or in connection with the proposed Transaction
bears to the Fee paid or to be paid to PCA under this Agreement; provided that,
to the extent permitted by applicable law, in no event shall the Indemnified
Parties be required to contribute an aggregate amount in excess of the aggregate
fees actually paid to PCA under this Agreement.

Promptly after receipt by an Indemnified Party of notice of any claim or the
commencement of any action, suit or proceeding with respect to which an
Indemnified Party may be entitled to indemnity hereunder, such Indemnified Party
will notify the Company in writing of such claim or of the commencement of such
action or proceeding, and the Company will assume the defense of such action,
suit or proceeding and will employ counsel satisfactory to the Indemnified
Parties and will pay the fees and disbursements of such counsel, as incurred.
Notwithstanding the preceding sentence, any Indemnified Party will be entitled
to employ counsel separate from counsel for the Company and from any other party
in such action if such Indemnified Party reasonably

                                                         Towerstream Corporation
                                                                January __, 2007
                                                                    Page 10 of 6

determines that a conflict of interest exists which makes representation by
counsel chosen by the Company not advisable or if such Indemnified Party
reasonably determines that the Company's assumption of the defense does not
adequately represent its interest. In such event, the fees and disbursements of
such separate counsel will be paid by the Company, but in no event shall the
Company be liable for the fees and disbursements of more than one counsel (in
addition to local counsel) for all Indemnified Parties in connection with any
one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances.

The Company agrees that, without PCA's prior written consent, it will not
settle, compromise or consent to the entry of any judgment in any pending or
threatened claim, action or proceeding in respect of which indemnification could
be sought under the indemnification provision of this Agreement (whether or not
PCA or any other Indemnified Party is an actual or potential party to such
claim, action or proceeding), unless such settlement, compromise or consent
includes an unconditional release of each Indemnified Party from all liability
arising out of such claim, action or proceeding. PCA agrees that, without the
Company's prior written consent, it will not settle, compromise or consent to
the entry of any judgment in any pending or threatened claim, action or
proceeding in respect of which indemnification could be sought under the
indemnification provision of this Agreement (whether or not the Company is an
actual or potential party to such claim, action or proceeding), unless such
settlement, compromise or consent includes an unconditional release of each
Indemnified Party from all liability arising out of such claim, action or
proceeding.

In the event any Indemnified Party is requested or required to appear as a
witness in any action, suit or proceeding brought by or on behalf of or against
the Company or any affiliate or any participant in a Transaction covered hereby
in which such Indemnified Party is not named as a defendant, the Company agrees
to reimburse PCA and such Indemnified Party for all reasonable disbursements
incurred by them in connection with such Indemnified Party's appearing and
preparing to appear as a witness, including, without limitation, the reasonable
fees and disbursements of their legal counsel, and to compensate PCA and such
Indemnified Party in an amount to be mutually agreed upon.

In the event that any amounts due under these indemnification provisions
contained in this Annex A are not paid within thirty days after written notice
of such event giving rise to the indemnification obligations, such amounts shall
bear interest at a rate of 1.5% per month or at the highest rate permitted under
the laws of the State of New York, whichever rate is lower.

The provisions of Annex A shall be in addition to any liability which the
Company may otherwise have. These provisions shall be governed by the law of the
State of New York and shall be operative, in full force and in full effect,
regardless of any termination or expiration of this agreement.

PALLADIUM CAPITAL                           TOWERSTREAM CORP.
ADVISORS, LLC

By:                                     By:
   ----------------------------------      -------------------------------------
   Joel Padowitz, CEO                      Jeff Thompson, President

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