Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”)
is effective as of one o’clock a.m. Central Daylight Time October 22,
2007, by and between Tower Tech Holdings, Inc. (the “Company”),
and Lars Moller (the “Executive”).

 

WHEREAS, the Company is engaged in the business
of manufacturing components for the wind turbine, oil and gas, and mining
industries;

 

WHEREAS, the Company desires to employ the
Executive and the Executive desires to be employed by the Company; and

 

WHEREAS, the Company and the Executive desire to
enter into this Agreement to set forth the rights, duties, benefits and
obligations with respect to the employment of the Executive by the Company
under the terms and conditions herein provided.

 

NOW, THEREFORE, in consideration of the Executive’s
employment with the Company, and the mutual and respective covenants and
agreements of the parties herein contained, and other good and valuable
consideration present but not specifically set forth, the parties hereto agree
as follows:

 

1.             Employment.  The
Company hereby agrees to employ the Executive, and the Executive hereby agrees
to be employed by the Company, on the terms and conditions set forth
herein.  This Agreement and Executive’s
duties hereunder shall commence on one o’clock p.m. Central Daylight Time October 22,
2007 (the “Start Date”) and this
Agreement and Executive’s employment hereunder shall end on the third
anniversary thereafter, unless sooner terminated in accordance with the
provisions of Section 6 hereof (the “Term”).

 

                2.             Position and
Duties.  During the Term, the
Executive shall serve as Executive Vice President of Business Development of
the Company or such other executive position as assigned by the Company.  The Executive shall devote all of his working
time and efforts to the business and affairs of the Company except for such
time as shall reasonably be required to serve in connection with civic or
charitable activities, or manage Executive’s financial matters, provided that
such activities, in the aggregate, do not materially impair Executive’s ability
to perform the normal duties of his employment hereunder.  The Executive shall perform those job duties
customary to his position and as assigned by the Company’s Board of Directors
(the “Board”) to the extent such
other duties assigned by the Board are consistent with Executive’s position.

 

                3.             Compensation and
Related Matters.

 

                (a)           Base Salary.  The Executive shall receive an annual base
salary of Two Hundred Fifty Thousand Dollars ($250,000.00), less required and
authorized withholding and deductions, subject to review and adjustment by the
Company from time to time (“Base Salary”).

 

 

 

                (b)           Bonus.  During the Term, in addition to the Base
Salary, the Executive may be eligible to earn an annual bonus as determined by
the Compensation Committee of the Board based on individual and Company
performance criteria to be established by the Board.

 

                (c)           Stock.  The Executive shall be eligible to
participate in the Company’s common stock incentive plan as in effect from time
to time.

 

                (d)           Benefits.  Executive shall be entitled to all rights and
benefits for which he is eligible under the terms and conditions of the Company’s
standard benefits and compensation practices that may be in effect from time to
time and provided by the Company to its employees generally.  In addition to, and not in limitation of, the
foregoing, during the Term, the Executive shall be eligible to accrue up to
four weeks (20 business days) of paid vacation per year exclusive of any business
day with respect to which the Company is closed for business due to any
federal, state or local holiday or any day off generally granted by the Company
to its employees, subject to the Company’s then-current vacation policy (which
shall not have the effect of reducing said four weeks (20 business days) of
paid vacation.   In addition to, and not
in limitation of the foregoing, during the Term the Executive shall receive any
additional benefits generally provided by the Company to executive employees of
the Company.

 

                (e)           Expense Reimbursement.  The Company will reimburse the Executive for
reasonable business expenses in accordance with the Company’s standard expense
account and reimbursement policies.

 

(f)            Relocation and Temporary
Housing.  In connection with
the Executive’s relocation to the primary corporate office location, the
Company will advance and or reimburse the Executive for reasonable household
packing, moving, storage, related insurance and other costs of such relocation,
provided that (i) such relocation
occurs during the Executive’s employment with the Company and not later than
six months immediately following the Start Date; and (ii) the aggregate of
the amounts to be reimbursed and the tax-related payment with respect thereto
shall be in an amount approved by the Board. The Company shall also provide the
Executive with temporary housing in the primary corporate office location for
up to ninety (90) days immediately following the Start Date.

 

4.             Representations and Warranties of Executive.  In order to induce the Company to employ the
Executive, the Executive hereby represents and warrants to the Company as
follows:

 

                (a)           Binding Agreement.  This Agreement has been duly executed and
delivered by the Executive and constitutes a legal, valid and binding
obligation of the Executive and is enforceable against the Executive in
accordance with its terms.

 

                (b)           No Violations of Law.  The execution and delivery of this Agreement
and the other agreements contemplated hereby by the Executive do not, and the
performance by the Executive of his obligations under this Agreement and the
other agreements contemplated hereby will not, violate any term or provision of
any law, or any writ, judgment, decree, injunction, or similar order applicable
to the Executive.

 

 

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                (c)           Litigation.  The Executive is not involved in any
proceeding, claim, lawsuit, or investigation alleging wrongdoing by the
Executive before any court or public or private arbitration board or panel or
governmental department, commission, board, bureau, agency or instrumentality.

 

                                (d)           No Conflicting
Obligations.  Executive is not
under, or bound to be under in the future, any obligation to any person or
entity that is or would be inconsistent or in conflict with this Agreement or
would prevent, limit, or impair in any way the performance by him of his
obligations hereunder, including but not limited to any duties owed to any
former employers not to compete or use or disclose confidential information.  Executive represents and agrees that he will
not disclose to the Company or use on behalf of the Company any confidential
information or trade secrets belonging to a third party, including any former
employer.  Executive further represents
and agrees that he has returned, or will return before his last day of
employment with his current employer, all property belonging to Executive’s
current and previous employers, including but not limited to any and all
confidential information.  Provided these
representations are met by Executive and Executive has acted in good faith and
has not otherwise violated any contractual or legal obligations, the Company
will provide and pay for legal services to defend the Executive in the event of
litigation initiated by Executive’s preceding employer.  In the event the Company is required to
defend Executive pursuant to this Section, the Company and Executive shall be
represented by the same legal counsel as chosen by the Company.

 

5.             Restrictive Covenants.

 

                (a)           Confidentiality Critical.  The parties agree that the business in which
the Company is engaged is highly sales-oriented and the goodwill established
between the Executive and the Company’s customers and potential customers is a
valuable and legitimate business interest worthy of protection under this
Agreement.  The Executive acknowledges
and agrees that developing and maintaining business relationships is an
important and essential business interest of the Company.  The Executive further recognizes that, by virtue
of his employment by the Company, he will be granted otherwise prohibited
access to confidential and proprietary data of the Company which is not known
to its competitors and which has independent economic value to the Company and
that he will gain an intimate knowledge of the Company’s business and its
policies, customers, employees and trade secrets, and of other confidential,
proprietary, privileged, or secret information of the Company and its customers
(“Customers”) (collectively, all such
nonpublic information is referred to as “Confidential Information”).

 

This Confidential Information includes, but is not
limited to data relating to the Company’s marketing and servicing programs,
procedures and techniques; business, management and personnel strategies; the
criteria and formulae used by the Company in pricing its products, loss control
and information management services; the Company’s products and services; the
Company’s computer system and software; lists of prospects; customer lists; the
identity, authority and responsibilities of key contacts at accounts of
Customers; and the composition and organization of Customers’ business.  The Executive recognizes and admits that this
Confidential Information constitutes valuable property of the Company, developed
over a long period of time and at substantial expense, and worthy of
protection.  Executive acknowledges and
agrees that only through his employment with the Company could he have the 

 

 

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opportunity to learn this
Confidential Information.  The Company
acknowledges and agrees that Executive has substantial knowledge of the wind
industry.

 

                (b)           Confidential Information.  The Executive shall not (for any reason),
directly or indirectly, for himself or on behalf of any other person or entity,
(A) disclose to any person or entity (except to employees or other
representatives of the Company who need to know such Confidential Information
to the extent reasonably necessary for the Executive to perform his duties
under this Agreement or such employees or representatives to perform their
duties on behalf of the Company, and except as required by law) any
Confidential Information that the Executive may have acquired in the course of
or as an incident to his employment or prior dealings with the Company or any
Customers, including, without limitation, business or trade secrets of, or
products or methods or techniques used by, the Company, or any Confidential
Information whatsoever concerning the Customers, (B) use, directly or
indirectly, for his own benefit or for the benefit of another (other than a
Customer) any of such Confidential Information, or (C) assist any other
person or entity in connection with any action described in either of the
foregoing clauses (A) and (B);

 

(c)           Noninterference with
Employees.  The Executive
further agrees that the Company has expended considerable time, energy and
resources into training its other employees (“Co-Workers”).  As a result, during his employment with the
Company and for a period of one (1) year thereafter, the Executive shall
not, for any reason, directly or indirectly, for himself or on behalf of any
other person or entity, (A) induce or attempt to induce any Co-Worker to
terminate employment with the Company, (B) interfere with or disrupt the
Company’s relationship with any of the Co-Workers, (C) solicit, entice,
hire, cause to  hire, or take away any
person employed by the Company at that time or during the 12-month period
preceding Executive’s last day of employment with the Company, or (D) assist
any other person or entity in connection with any action described in any of
the foregoing clauses (A) through (C).

 

(d)           Non-competition.  The Executive further agrees with the Company
to the following provisions, all of which Executive acknowledges and agrees are
necessary to protect the Company’s legitimate business interests.  The Executive covenants and agrees with the
Company that:

 

                                (i)            The Executive shall not, during his
employment with the Company and for a period of one (1) year thereafter,
either directly or indirectly, engage in, render service or other assistance
to, or sell products or services, or provide resources of any kind, whether as
an owner, partner, shareholder, officer, director, employee, consultant or in
any other capacity, whether or not for consideration, to any person,
corporation, or any entity, whatsoever, that owns, operates or conducts a
business that competes, in any way, with the Company other than the ownership
of 5% or less of the shares of a public company where Executive is not active
in the day to day management of the Company.

 

                                (ii)           The Executive shall not, during his
employment with the Company and for a period of one (1) year thereafter,
either directly or indirectly, (A) solicit, call on or contact any
Customer of the Company for the purpose or with the effect of offering any
products or services of any kind offered by the Company at that time or during
his employment with the Company, (B) request or advise any present or
future 

 

 

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vendors or suppliers to the Company to cancel any contracts, or curtail
their dealings, with the Company, or (C) assist any other person or entity
in connection with any action described in any of the foregoing clauses (A) through
(B).

 

                                (iii)          During his employment with the
Company, the Executive shall not own, or permit ownership by the Executive’s
spouse or any minor children under the parental control of the Executive,
directly or indirectly, an amount in excess of five percent (5%) of the
outstanding shares of stock of a corporation, or five percent (5%) of any
business venture of any kind, which operates or conducts a business that
competes, in any way, with the Company.

 

(e)           Non-disparagement.  At any time during or after Executive’s
employment with the Company, the Executive shall not disparage the Company or
any shareholders, directors, officers, employees, or agents of the Company.

 

                                                                                                (f)            Understandings.

 

                                (i)            The provisions of this Section 5
shall be construed as an agreement independent of any other claim.  The existence of any claim or cause of action
of the Executive against the Company, whether predicated on Executive’s
employment or otherwise, shall not constitute a defense to the enforcement by
the Company of the terms of Section 5 of this Agreement.  If the Executive breaches or threatens to
breach any term of this Section 5, the Company shall be entitled as a
matter of right to recover from the Executive to its reasonable attorneys’
fees, costs, and expenses associated with enforcing Section 5, in addition
to any other remedies available at law or equity.  The Executive waives any right to a jury
trial in any litigation relating to or arising from this Agreement.

 

                                (ii)           The Executive acknowledges and agrees
that the covenants and agreements contained herein are necessary for the
protection of the Company’s legitimate business interests and are reasonable in
scope and content.  The Executive agrees
that the restrictions contained in this Section 5 are reasonable and will
not unduly restrict him in securing other employment or income in the event his
employment with the Company ends.  The
Executive acknowledges and agrees that he executed this Agreement on or before
his first day of employment with the Company.

 

                (g)           Injunctive Relief. 
The Executive acknowledges and agrees that any breach by him of any of
the covenants or agreements contained in this Section 5 would give rise to
irreparable injury and would not be adequately compensable in damages.  Accordingly, the Executive agrees that the
Company may seek and obtain injunctive relief against the breach or threatened
breach of any of the provisions of this Agreement in addition to any other
legal remedies available.

 

                (h)           Reformation and Survival. 
The Company and the Executive agree and stipulate that the agreements
and covenants contained in this Agreement are fair and reasonable in light of
all of the facts and circumstances of the relationship between them.  The Company and the Executive acknowledge
their awareness, however, that in certain circumstances courts have refused to
enforce certain agreements not to compete. 
Therefore, in furtherance of, and not in 

 

 

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derogation of, the provisions of this Section 5,
the Company and the Executive agree that, in the event a court should decline
to enforce one or more of the provisions of this Section 5 or decide to
limit the temporal or geographic scope of any restriction, then this Section 5
shall be deemed to be modified or reformed to restrict the Executive’s conduct
to the maximum extent (in terms of time, geography, and business scope) that
the court shall determine to be enforceable. 
The provisions of this Section 5 shall survive the termination of
this Agreement and Executive’s employment, regardless of the reason for such
termination, whether voluntary or involuntary.

 

6.             Termination.

 

                (a)           Termination upon Death.  If the Executive dies during the Term, this
Agreement shall terminate, except that the Executive’s legal representatives
shall be entitled to receive the Base Salary and other accrued benefits earned
up to the date of the Executive’s death.

 

                (b)           Termination By The Company
With Cause.  The Company has
the right, at any time during the Term, to terminate the Executive’s employment
with the Company for Cause (as defined below) by giving written notice to the
Executive as described in this Section 6(b) below.  Prior to the effectiveness of termination for
Cause under subclause (i), (ii), (iii) or (iv) below, the Executive
shall be given thirty (30) calendar days’ prior written notice from the
Company, specifically identifying the reasons which are alleged to constitute
Cause for any termination pursuant to the aforementioned subclauses, and an
opportunity to cure in the event the Executive disputes such allegations; provided, however, that
the Company shall have no obligation to continue to employ the Executive
following such thirty (30) calendar day notice period unless the Executive’s
cure meets the Company’s reasonable satisfaction.  The Company’s termination of the Executive’s
employment for Cause under subclause (v) or (vi) below shall be
effective immediately upon the Company’s written notice to the Executive.  If the Company terminates Executive’s
employment for Cause, the Company’s obligation to the Executive shall be
limited solely to the payment of unpaid Base Salary accrued up to the effective
date of termination plus any accrued but unpaid bonus and benefits.

 

As used in this Agreement, the term “Cause” shall mean and include (i) the
Executive’s abuse of alcohol that affects Executive’s performance of Executive’s
duties under this Agreement, or use of any controlled substance; (ii) a
willful act of fraud, dishonesty or breach of fiduciary duty on the part of the
Executive with respect to the business or affairs of the Company; (iii) material
failure by the Executive to comply with applicable laws and regulations or
professional standards relating to the business of the Company; (iv) material
failure by the Executive to satisfactorily perform his duties hereunder, a
material breach by the Executive of this Agreement, or Executive engaging in
conduct that materially conflicts with the best interests of the Company or
that may materially harm the Company’s reputation; (v) the Executive being
subject to an inquiry or investigation by a governmental authority or
self-regulatory organization such that the existence of such inquiry or
investigation may result in damage to the Company’s business interests,
licenses, reputation or prospects; or (vi) conviction of a felony or a
misdemeanor involving moral turpitude.

 

                (c)           Termination By The Company
Without Cause.  The Company
shall have the right, at any time during the Term, to terminate the Executive’s
employment with the Company without Cause by giving written notice to the
Executive, which termination shall be 

 

 

6

 

effective thirty (30)
calendar days from the date of such written notice.  The Company may provide 30 days pay in lieu
of notice.  If the Company terminates the
Executive’s employment without Cause, the Company’s obligation to the Executive
shall be limited solely to (i) unpaid Base Salary plus any bonus and
benefits accrued up to the effective date of termination; (ii) payments
equal to the Executive’s then-current Base Salary for a period of twelve (12)
months; and (iii) if Executive is eligible for and timely elects COBRA
coverage, payment of Executive’s COBRA premiums for a period of up to twelve
(12) months.  As a condition to his
receipt of the post-employment payments and benefits under this Section 6(c),
Executive shall be in compliance with Section 5 of this Agreement, and
required to execute, return, not rescind and comply with a release of claims
agreement in favor of the Company, in a form to be prepared by the
Company.   Executive shall have no duty
to mitigate damages under this Section 6(c) during the applicable
severance period and, in the event Executive shall subsequently receive income
from providing Executive’s services to any person or entity, including self
employment income, or otherwise, then no such income shall in any manner offset
or otherwise reduce the payment obligations of the Company hereunder.

 

                Notwithstanding anything herein to the contrary, this
6(c) shall not apply if Executive’s employment is terminated by the
Company or a succeeding entity without Cause upon or within  one year of a Change in Control at any time
during the Term as described in Section 7 hereof.  In such case, Section 7 of this
Agreement shall control.

 

                (d)           Termination By The
Executive for Good Reason.  The Executive has the right, at any time
during the Term, to terminate his employment with the Company for Good Reason
(as defined below) by giving written notice to the Company as described in this
Section 6(d) below.  Prior to
the effectiveness of termination for Good Reason, the Company shall be given
thirty (30) calendar days’ prior written notice from the Executive,
specifically identifying the reasons which are alleged to constitute Good
Reason, and an opportunity to cure; provided, however, that the Executive shall have no obligation to
continue his employment with the Company following such thirty (30) calendar
day notice period unless the Company cures the event(s) giving rise to
Executive’s Good Reason notice.  As used
in this Section 6(d), the term “Good Reason” shall
mean and include (i) assignment to Executive of duties materially
inconsistent with Executive’s position, (ii) requiring the Executive to
move his place of employment more than 50 miles from his place of employment
prior to such move, or (iii) a material breach by the Company of this
Agreement; provided that in any such case Executive has not consented thereto.

 

If the Executive terminates his employment for Good
Reason, the Company’s obligation to the Executive shall be limited solely to (i) unpaid
Base Salary plus any bonus and benefits accrued up to the effective date of
termination; (ii) payments equal to the Executive’s then-current Base
Salary for a period of twelve (12) months; and (iii) if Executive is
eligible for and timely elects COBRA coverage, payment of Executive’s COBRA
premiums for a period of up to twelve (12) months. As a condition to his
receipt of the post-employment payments and benefits under this Section 6(d),
Executive shall be in compliance with Section 5 of this Agreement, and
required to execute, return, not rescind and comply with a release of claims
agreement in favor of the Company, in a form to be prepared by the
Company.  Executive shall have no duty to
mitigate damages under this Section 6(d) during the applicable
severance period and, in the event Executive shall subsequently receive income
from providing Executive’s services to any person 

 

 

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or entity, including self
employment income, or otherwise, then no such income shall in any manner offset
or otherwise reduce the payment obligations of the Company hereunder.

 

The Executive has the right, at any time during the
Term, to terminate his employment with the Company without Good Reason (as
defined above) by giving written notice to the Company, which termination shall
be effective sixty (60) calendar days from the date of such written notice.  If the Executive terminates his employment
without Good Reason, the Company’s obligation to the Executive shall be limited
solely to the payment of unpaid Base Salary accrued up to the effective date of
termination plus any accrued but unpaid bonus and benefits.

 

                (e)           Termination Upon
Disability.  The Company shall
have the right, at any time during the Term, to terminate the Executive’s
employment if, during the term hereof, the Executive becomes physically or
mentally disabled, whether totally or partially, as evidenced by the written
statement of a competent physician licensed to practice medicine in the United
States who is mutually acceptable to the Company and the Executive, so that the
Executive is unable to perform the essential functions of his job duties
hereunder, with or without reasonable accommodation, for (i) a period of
three (3) consecutive months, or (ii) for shorter periods aggregating
ninety (90) calendar days during any twelve-month period.  If the Company terminates Executive’s employment
under this Section 6(e), the Company’s obligation to the Executive shall
be limited solely to the payment of unpaid Base Salary, bonus and benefits
accrued up to the effective date of termination.

 

7.             Change of Control.

 

                (a)           Anything in this Agreement to the
contrary notwithstanding, if, upon or within one year of a Change of Control
(as defined below), the Company or a succeeding entity terminates Employee
without Cause (as defined above) at any time during the Term, the Company or
the succeeding entity’s obligation to the Executive shall be (i) unpaid
Base Salary, bonus and benefits accrued up to the effective date of
termination, (ii) a lump sum payment equal to Executive’s then-current
Base Salary for a period of twelve (12) months, to be paid within sixty (60)
calendar days following Executive’s last day of employment, and (iii) if
Executive is eligible for and timely elects COBRA coverage, payment of
Executive’s COBRA premiums for a period of up to twelve (12) months.  In the event of a without Cause Change of
Control termination as described herein, these payments shall be in lieu of,
and not in addition to, any severance pay or benefits set forth in Sections 6(c) of
this Agreement. As a condition to his receipt of the post-employment payments
and benefits under this Section 7(a), Executive shall be in compliance
with Section 5 of this Agreement, and required to execute, return, not
rescind and comply with a release of claims agreement in favor of the Company
or a succeeding entity, in a form to be prepared by the Company or a succeeding
entity.

 

(b)           Change of Control Defined.  A “Change of Control” means: (i)  The
consummation of any merger, consolidation, exchange, or reorganization to which
the Company is a party if the individuals and entities who were stockholders of
the Company immediately prior to the effective date of such transaction have,
immediately following the effective date of such transaction, beneficial
ownership (as defined in Rule 13d-3 under the Securities Exchange Act of
1934) of less than fifty percent (50%) of the total combined voting power of
all classes of 

 

 

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securities issued by the surviving corporation; (ii) The
stockholders of the Company approve any plan or proposal for the liquidation of
the Company; (iii) A sale, lease or other transfer of all or substantially
all of the assets of the Company to any person or entity which is not an
Affiliate of the Company; or (iv) The acquisition, without prior approval
by resolution adopted by the Board, of direct or indirect beneficial ownership
(as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of
securities of the Company representing, in the aggregate, more than fifty
percent (50%) or more of the total combined voting power of all classes of the
Company’s then-issued and outstanding securities by any person or entity or by
a group of associated persons or entities acting in concert; provided, however,
that a Change of Control will not be deemed to occur if such acquisition is
initiated by Participant or an entity in which Participant owns fifty percent
(50%) or more of the total combined voting power of all classes of such entity’s
securities, or if Participant or such entity is a member of the group of
associated persons or entities acting in concert.  In all cases, the determination of whether a
Change of Control has occurred shall be made in accordance with Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), and the
regulations, notices and other guidance of general applicability issued
thereunder.

 

8.             Code Section 409A. 
Notwithstanding anything herein to the contrary, if any payments to be
made to the Executive hereunder are subject to the requirements of Code Section 409A
and the Company determines that Executive is a “specified employee” as defined
in Code Section 409A as of the date of the termination, such payments
shall not be paid or commence earlier than the date that is six months after
the termination, but shall be paid or commence during the calendar year
following the year in which the termination occurs and within thirty (30)
calendar days of the earliest possible date permitted under Code Section 409A.

 

9.             Successors; Assignment,
Etc.; Third Party Beneficiaries.

 

                (a)           Executive
consents to and the Company shall have the right to assign this Agreement to
its successors or assigns.  All covenants
or agreements hereunder shall inure to the benefit of and be enforceable by or
against its successors or assigns.  The
terms “successors” and “assigns” shall include, but not be limited to, any
succeeding entity upon a Change in Control.

 

                (b)           Neither this Agreement nor any of the
rights or obligations of the Executive under this Agreement may be assigned or
delegated except as provided in the last sentence of this Section 9(b).  This Agreement and all rights of the
Executive hereunder shall inure to the benefit of and be enforceable by, and
shall be binding upon, the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and
legatees.  If the Executive should die
while any amounts would still be payable to him hereunder had he continued to
live, then all such amounts (unless otherwise provided herein) shall be paid in
accordance with the terms of this Agreement to the devisee, legatee, or other
designee under the Executive’s testamentary will or, if there be no such will,
to the Executive’s estate.

 

10.          Notice.  For purposes
of this Agreement, all notices and other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when
delivered in person or when mailed by United States registered or certified
mail, return receipt requested, first-class postage prepaid, addressed as follows:

 

 

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  If to the Executive :

  	
   

  	
  If to the Company :

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

or to such other address
as any party may have furnished to the other in writing in accordance with this
Section 10, except that notices of any change of address shall be
effective only upon actual receipt.

 

11.          Miscellaneous.  No
provision of this Agreement may be modified, waived, or discharged unless such
waiver, modification, or discharge is agreed to in writing signed by the Executive
and such officers as may be specifically designated by the board of directors
of the Company.  No waiver by either
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of any
similar or dissimilar condition or provision at the same or any other
time.  No agreements or representations
(whether oral or otherwise, express or implied) with respect to the subject
matter of this Agreement have been made by either party which are not set forth
expressly in this Agreement or which are not specifically referred to in this
Agreement.  The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws
of the State of Wisconsin.  Unless the context otherwise requires, words
using the singular or plural number shall respectively include the plural or
singular number, and pronouns of any gender shall include each other gender.

 

12.          Validity.  If any
provision of this Agreement is held to be illegal, invalid, or unenforceable
under any present or future law or court decision, and if the rights or
obligations of the Company and the Executive will not be materially and
adversely affected thereby, (a) such provision shall be fully severable from
this Agreement, (b) this Agreement shall be construed and enforced as if
such illegal, invalid, or unenforceable provision had never comprised a part
hereof, (c) the remaining provisions of this Agreement shall remain in
full force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance herefrom, and (d) in lieu of
such illegal, invalid, or unenforceable provision, there shall be added
automatically as a part of this Agreement a legal, valid, and enforceable
provision as similar to the terms and intent of such illegal, invalid, or
unenforceable provision as may be possible.

 

13.          Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.

 

14.          Litigation.  The
parties agree that the exclusive venue for any litigation commenced by the
Company or the Executive relating to this Agreement shall be the state courts
located in Milwaukee County, Wisconsin and the United States District Court,
Eastern District of Wisconsin in Milwaukee County, Wisconsin.  The parties waive any rights to object to
venue as set forth herein, including any argument of inconvenience for any
reason.

 

 

10

 

15.          Entire Agreement. 
This Agreement constitutes (i) the binding agreement between the
parties and (ii) represents the entire agreement between the parties and
supersedes all prior agreements relating to the subject matter contained
herein. All prior negotiations concerning Executive’s employment with the
Company have been merged into this Agreement and are reflected in the terms
herein.

 

                IN WITNESS WHEREOF, the parties have duly executed and
delivered this Agreement as of the date first above written.

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  By: /s/ Lars Moller

  
	
   

  	
  Name: Lars Moller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  TOWER TECH HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ Steven A. Huntington

  
	
   

  	
  Name:  Steve
  Huntington

  
	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  

 

 

11Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”)
is effective as of one o’clock a.m. Central Daylight Time October 22,
2007, by and between Tower Tech Holdings, Inc. (the “Company”),
and Matthew Gadow (the “Executive”).

 

WHEREAS, the Company is engaged in the business
of manufacturing components for the wind turbine, oil and gas, and mining
industries;

 

WHEREAS, the Company desires to employ the
Executive and the Executive desires to be employed by the Company; and

 

WHEREAS, the Company and the Executive desire to
enter into this Agreement to set forth the rights, duties, benefits and
obligations with respect to the employment of the Executive by the Company
under the terms and conditions herein provided.

 

NOW, THEREFORE, in consideration of the Executive’s
employment with the Company, and the mutual and respective covenants and
agreements of the parties herein contained, and other good and valuable
consideration present but not specifically set forth, the parties hereto agree
as follows:

 

1.             Employment.  The
Company hereby agrees to employ the Executive, and the Executive hereby agrees
to be employed by the Company, on the terms and conditions set forth
herein.  This Agreement and Executive’s
duties hereunder shall commence on one o’clock p.m. Central Daylight Time October 22,
2007 (the “Start Date”) and this
Agreement and Executive’s employment hereunder shall end on the third
anniversary thereafter, unless sooner terminated in accordance with the
provisions of Section 6 hereof (the “Term”).

 

                2.             Position and
Duties.  During the Term, the
Executive shall serve as Executive Vice President of Strategic Planning of the
Company or such other executive position as assigned by the Company.  The Executive shall devote all of his working
time and efforts to the business and affairs of the Company except for such
time as shall reasonably be required to serve in connection with civic or
charitable activities, or manage Executive’s financial matters, provided that
such activities, in the aggregate, do not materially impair Executive’s ability
to perform the normal duties of his employment hereunder.  The Executive shall perform those job duties
customary to his position and as assigned by the Company’s Board of Directors
(the “Board”) to the extent such
other duties assigned by the Board are consistent with Executive’s position.

 

                3.             Compensation and
Related Matters.

 

                (a)           Base Salary.  The Executive shall receive an annual base
salary of Two Hundred Fifteen Thousand Dollars ($215,000.00), less required and
authorized withholding and deductions, subject to review and adjustment by the
Company from time to time (“Base Salary”).

 

 

 

                (b)           Bonus.  During the Term, in addition to the Base
Salary, the Executive may be eligible to earn an annual bonus as determined by
the Compensation Committee of the Board based on individual and Company
performance criteria to be established by the Board.

 

                (c)           Stock.  The Executive shall be eligible to
participate in the Company’s common stock incentive plan as in effect from time
to time.

 

                (d)           Benefits.  Executive shall be entitled to all rights and
benefits for which he is eligible under the terms and conditions of the Company’s
standard benefits and compensation practices that may be in effect from time to
time and provided by the Company to its employees generally.  In addition to, and not in limitation of, the
foregoing, during the Term, the Executive shall be eligible to accrue up to
four weeks (20 business days) of paid vacation per year exclusive of any business
day with respect to which the Company is closed for business due to any
federal, state or local holiday or any day off generally granted by the Company
to its employees, subject to the Company’s then-current vacation policy (which
shall not have the effect of reducing said four weeks (20 business days) of
paid vacation.  In addition to, and not
in limitation of the foregoing, during the Term the Executive shall receive any
additional benefits generally provided by the Company to executive employees of
the Company.

 

                (e)           Expense Reimbursement.  The Company will reimburse the Executive for
reasonable business expenses in accordance with the Company’s standard expense
account and reimbursement policies.

 

                (f)            Relocation and Temporary
Housing.  In connection with
the Executive’s relocation to the primary corporate office location, the
Company will advance and or reimburse the Executive for reasonable household
packing, moving, storage, related insurance and other costs of such relocation,
provided that (i) such relocation
occurs during the Executive’s employment with the Company and not later than
eighteen (18) months immediately following the Start Date; and (ii) the
aggregate of the amounts to be reimbursed and the tax-related payment with
respect thereto shall be in an amount approved by the Board. The Company shall
also provide the Executive with temporary housing in the primary corporate
office location for up to ninety (90) days immediately following the Start
Date.

 

4.             Representations and Warranties of Executive.  In order to induce the Company to employ the
Executive, the Executive hereby represents and warrants to the Company as
follows:

 

                (a)           Binding Agreement.  This Agreement has been duly executed and
delivered by the Executive and constitutes a legal, valid and binding
obligation of the Executive and is enforceable against the Executive in
accordance with its terms.

 

                (b)           No Violations of Law.  The execution and delivery of this Agreement
and the other agreements contemplated hereby by the Executive do not, and the
performance by the Executive of his obligations under this Agreement and the
other agreements contemplated hereby will not, violate any term or provision of
any law, or any writ, judgment, decree, injunction, or similar order applicable
to the Executive.

 

 

2

 

                (c)           Litigation.  The Executive is not involved in any
proceeding, claim, lawsuit, or investigation alleging wrongdoing by the
Executive before any court or public or private arbitration board or panel or
governmental department, commission, board, bureau, agency or instrumentality.

 

                                (d)           No Conflicting
Obligations.  Executive is not
under, or bound to be under in the future, any obligation to any person or
entity that is or would be inconsistent or in conflict with this Agreement or
would prevent, limit, or impair in any way the performance by him of his
obligations hereunder, including but not limited to any duties owed to any
former employers not to compete or use or disclose confidential
information.  Executive represents and
agrees that he will not disclose to the Company or use on behalf of the Company
any confidential information or trade secrets belonging to a third party,
including any former employer.  Executive
further represents and agrees that he has returned, or will return before his
last day of employment with his current employer, all property belonging to
Executive’s current and previous employers, including but not limited to any
and all confidential information.  Provided
these representations are met by Executive and Executive has acted in good
faith and has not otherwise violated any contractual or legal obligations, the
Company will provide and pay for legal services to defend the Executive in the
event of litigation initiated by Executive’s preceding employer.  In the event the Company is required to
defend Executive pursuant to this Section, the Company and Executive shall be
represented by the same legal counsel as chosen by the Company.

 

5.             Restrictive Covenants.

 

                (a)           Confidentiality Critical.  The parties agree that the business in which
the Company is engaged is highly sales-oriented and the goodwill established
between the Executive and the Company’s customers and potential customers is a
valuable and legitimate business interest worthy of protection under this
Agreement.  The Executive acknowledges
and agrees that developing and maintaining business relationships is an
important and essential business interest of the Company.  The Executive further recognizes that, by
virtue of his employment by the Company, he will be granted otherwise
prohibited access to confidential and proprietary data of the Company which is
not known to its competitors and which has independent economic value to the
Company and that he will gain an intimate knowledge of the Company’s business
and its policies, customers, employees and trade secrets, and of other
confidential, proprietary, privileged, or secret information of the Company and
its customers (“Customers”) (collectively,
all such nonpublic information is referred to as “Confidential
Information”).

 

This Confidential Information includes, but is not
limited to data relating to the Company’s marketing and servicing programs,
procedures and techniques; business, management and personnel strategies; the
criteria and formulae used by the Company in pricing its products, loss control
and information management services; the Company’s products and services; the
Company’s computer system and software; lists of prospects; customer lists; the
identity, authority and responsibilities of key contacts at accounts of
Customers; and the composition and organization of Customers’ business.  The Executive recognizes and admits that this
Confidential Information constitutes valuable property of the Company,
developed over a long period of time and at substantial expense, and worthy of
protection.  Executive acknowledges and
agrees that only through his employment with the Company could he have the 

 

3

 

opportunity to learn this
Confidential Information.  The Company
acknowledges and agrees that Executive has substantial knowledge of the wind
industry.

 

                (b)           Confidential Information.  The Executive shall not (for any reason),
directly or indirectly, for himself or on behalf of any other person or entity,
(A) disclose to any person or entity (except to employees or other
representatives of the Company who need to know such Confidential Information
to the extent reasonably necessary for the Executive to perform his duties
under this Agreement or such employees or representatives to perform their
duties on behalf of the Company, and except as required by law) any
Confidential Information that the Executive may have acquired in the course of
or as an incident to his employment or prior dealings with the Company or any
Customers, including, without limitation, business or trade secrets of, or
products or methods or techniques used by, the Company, or any Confidential
Information whatsoever concerning the Customers, (B) use, directly or
indirectly, for his own benefit or for the benefit of another (other than a
Customer) any of such Confidential Information, or (C) assist any other
person or entity in connection with any action described in either of the
foregoing clauses (A) and (B);

 

(c)           Noninterference with
Employees.  The Executive
further agrees that the Company has expended considerable time, energy and
resources into training its other employees (“Co-Workers”).  As a result, during his employment with the
Company and for a period of one (1) year thereafter, the Executive shall
not, for any reason, directly or indirectly, for himself or on behalf of any
other person or entity, (A) induce or attempt to induce any Co-Worker to
terminate employment with the Company, (B) interfere with or disrupt the
Company’s relationship with any of the Co-Workers, (C) solicit, entice,
hire, cause to  hire, or take away any
person employed by the Company at that time or during the 12-month period
preceding Executive’s last day of employment with the Company, or (D) assist
any other person or entity in connection with any action described in any of
the foregoing clauses (A) through (C).

 

(d)           Non-competition.  The Executive further agrees with the Company
to the following provisions, all of which Executive acknowledges and agrees are
necessary to protect the Company’s legitimate business interests.  The Executive covenants and agrees with the
Company that:

 

                                (i)            The Executive shall not, during his
employment with the Company and for a period of one (1) year thereafter,
either directly or indirectly, engage in, render service or other assistance
to, or sell products or services, or provide resources of any kind, whether as
an owner, partner, shareholder, officer, director, employee, consultant or in
any other capacity, whether or not for consideration, to any person,
corporation, or any entity, whatsoever, that owns, operates or conducts a
business that competes, in any way, with the Company other than the ownership
of 5% or less of the shares of a public company where Executive is not active
in the day to day management of the Company.

 

                                (ii)           The Executive shall not, during his
employment with the Company and for a period of one (1) year thereafter,
either directly or indirectly, (A) solicit, call on or contact any
Customer of the Company for the purpose or with the effect of offering any
products or services of any kind offered by the Company at that time or during
his employment with the Company, (B) request or advise any present or future

 

4

 

vendors or suppliers to the Company to cancel any contracts, or curtail
their dealings, with the Company, or (C) assist any other person or entity
in connection with any action described in any of the foregoing clauses (A) through
(B).

 

                                (iii)          During his employment with the
Company, the Executive shall not own, or permit ownership by the Executive’s
spouse or any minor children under the parental control of the Executive,
directly or indirectly, an amount in excess of five percent (5%) of the
outstanding shares of stock of a corporation, or five percent (5%) of any
business venture of any kind, which operates or conducts a business that
competes, in any way, with the Company.

 

(e)           Non-disparagement.  At any time during or after Executive’s
employment with the Company, the Executive shall not disparage the Company or
any shareholders, directors, officers, employees, or agents of the Company.

 

                                                                                                (f)            Understandings.

 

                                (i)            The provisions of this Section 5
shall be construed as an agreement independent of any other claim.  The existence of any claim or cause of action
of the Executive against the Company, whether predicated on Executive’s
employment or otherwise, shall not constitute a defense to the enforcement by
the Company of the terms of Section 5 of this Agreement.  If the Executive breaches or threatens to
breach any term of this Section 5, the Company shall be entitled as a
matter of right to recover from the Executive to its reasonable attorneys’ fees,
costs, and expenses associated with enforcing Section 5, in addition to
any other remedies available at law or equity. 
The Executive waives any right to a jury trial in any litigation
relating to or arising from this Agreement.

 

                                (ii)           The Executive acknowledges and agrees
that the covenants and agreements contained herein are necessary for the
protection of the Company’s legitimate business interests and are reasonable in
scope and content.  The Executive agrees
that the restrictions contained in this Section 5 are reasonable and will
not unduly restrict him in securing other employment or income in the event his
employment with the Company ends.  The
Executive acknowledges and agrees that he executed this Agreement on or before
his first day of employment with the Company.

 

                (g)           Injunctive Relief. 
The Executive acknowledges and agrees that any breach by him of any of
the covenants or agreements contained in this Section 5 would give rise to
irreparable injury and would not be adequately compensable in damages.  Accordingly, the Executive agrees that the
Company may seek and obtain injunctive relief against the breach or threatened
breach of any of the provisions of this Agreement in addition to any other
legal remedies available.

 

                (h)           Reformation and Survival. 
The Company and the Executive agree and stipulate that the agreements
and covenants contained in this Agreement are fair and reasonable in light of
all of the facts and circumstances of the relationship between them.  The Company and the Executive acknowledge
their awareness, however, that in certain circumstances courts have refused to
enforce certain agreements not to compete. 
Therefore, in furtherance of, and not in 

 

5

 

derogation of, the provisions of this Section 5,
the Company and the Executive agree that, in the event a court should decline
to enforce one or more of the provisions of this Section 5 or decide to
limit the temporal or geographic scope of any restriction, then this Section 5
shall be deemed to be modified or reformed to restrict the Executive’s conduct
to the maximum extent (in terms of time, geography, and business scope) that
the court shall determine to be enforceable. 
The provisions of this Section 5 shall survive the termination of
this Agreement and Executive’s employment, regardless of the reason for such
termination, whether voluntary or involuntary.

 

6.             Termination.

 

                (a)           Termination upon Death.  If the Executive dies during the Term, this
Agreement shall terminate, except that the Executive’s legal representatives
shall be entitled to receive the Base Salary and other accrued benefits earned
up to the date of the Executive’s death.

 

                (b)           Termination By The Company
With Cause.  The Company has
the right, at any time during the Term, to terminate the Executive’s employment
with the Company for Cause (as defined below) by giving written notice to the
Executive as described in this Section 6(b) below.  Prior to the effectiveness of termination for
Cause under subclause (i), (ii), (iii) or (iv) below, the Executive
shall be given thirty (30) calendar days’ prior written notice from the
Company, specifically identifying the reasons which are alleged to constitute
Cause for any termination pursuant to the aforementioned subclauses, and an
opportunity to cure in the event the Executive disputes such allegations; provided, however, that
the Company shall have no obligation to continue to employ the Executive
following such thirty (30) calendar day notice period unless the Executive’s
cure meets the Company’s reasonable satisfaction.  The Company’s termination of the Executive’s
employment for Cause under subclause (v) or (vi) below shall be
effective immediately upon the Company’s written notice to the Executive.  If the Company terminates Executive’s
employment for Cause, the Company’s obligation to the Executive shall be
limited solely to the payment of unpaid Base Salary accrued up to the effective
date of termination plus any accrued but unpaid bonus and benefits.

 

As used in this Agreement, the term “Cause” shall mean and include (i) the
Executive’s abuse of alcohol that affects Executive’s performance of Executive’s
duties under this Agreement, or use of any controlled substance; (ii) a
willful act of fraud, dishonesty or breach of fiduciary duty on the part of the
Executive with respect to the business or affairs of the Company; (iii) material
failure by the Executive to comply with applicable laws and regulations or
professional standards relating to the business of the Company; (iv) material
failure by the Executive to satisfactorily perform his duties hereunder, a
material breach by the Executive of this Agreement, or Executive engaging in
conduct that materially conflicts with the best interests of the Company or
that may materially harm the Company’s reputation; (v) the Executive being
subject to an inquiry or investigation by a governmental authority or
self-regulatory organization such that the existence of such inquiry or
investigation may result in damage to the Company’s business interests,
licenses, reputation or prospects; or (vi) conviction of a felony or a
misdemeanor involving moral turpitude.

 

                (c)           Termination By The Company
Without Cause.  The Company
shall have the right, at any time during the Term, to terminate the Executive’s
employment with the Company without Cause by giving written notice to the
Executive, which termination shall be 

 

6

 

effective thirty (30)
calendar days from the date of such written notice.  The Company may provide 30 days pay in lieu
of notice.  If the Company terminates the
Executive’s employment without Cause, the Company’s obligation to the Executive
shall be limited solely to (i) unpaid Base Salary plus any bonus and
benefits accrued up to the effective date of termination; (ii) payments
equal to the Executive’s then-current Base Salary for a period of twelve (12)
months; and (iii) if Executive is eligible for and timely elects COBRA
coverage, payment of Executive’s COBRA premiums for a period of up to twelve
(12) months.  As a condition to his
receipt of the post-employment payments and benefits under this Section 6(c),
Executive shall be in compliance with Section 5 of this Agreement, and
required to execute, return, not rescind and comply with a release of claims
agreement in favor of the Company, in a form to be prepared by the
Company.   Executive shall have no duty
to mitigate damages under this Section 6(c) during the applicable
severance period and, in the event Executive shall subsequently receive income
from providing Executive’s services to any person or entity, including self
employment income, or otherwise, then no such income shall in any manner offset
or otherwise reduce the payment obligations of the Company hereunder.

 

                Notwithstanding anything herein to the contrary, this
6(c) shall not apply if Executive’s employment is terminated by the
Company or a succeeding entity without Cause upon or within  one year of a Change in Control at any time
during the Term as described in Section 7 hereof.  In such case, Section 7 of this
Agreement shall control.

 

                (d)           Termination By The
Executive for Good Reason.  The Executive has the right, at any time
during the Term, to terminate his employment with the Company for Good Reason
(as defined below) by giving written notice to the Company as described in this
Section 6(d) below.  Prior to
the effectiveness of termination for Good Reason, the Company shall be given
thirty (30) calendar days’ prior written notice from the Executive, specifically
identifying the reasons which are alleged to constitute Good Reason, and an
opportunity to cure; provided, however, that the Executive shall have no obligation to
continue his employment with the Company following such thirty (30) calendar
day notice period unless the Company cures the event(s) giving rise to
Executive’s Good Reason notice.  As used
in this Section 6(d), the term “Good Reason” shall
mean and include (i) assignment to Executive of duties materially
inconsistent with Executive’s position, or (ii) a material breach by the
Company of this Agreement; provided that in any such case Executive has not
consented thereto.

 

If the Executive terminates his employment for Good
Reason, the Company’s obligation to the Executive shall be limited solely to (i) unpaid
Base Salary plus any bonus and benefits accrued up to the effective date of
termination; (ii) payments equal to the Executive’s then-current Base
Salary for a period of twelve (12) months; and (iii) if Executive is
eligible for and timely elects COBRA coverage, payment of Executive’s COBRA
premiums for a period of up to twelve (12) months. As a condition to his
receipt of the post-employment payments and benefits under this Section 6(d),
Executive shall be in compliance with Section 5 of this Agreement, and
required to execute, return, not rescind and comply with a release of claims
agreement in favor of the Company, in a form to be prepared by the
Company.  Executive shall have no duty to
mitigate damages under this Section 6(d) during the applicable
severance period and, in the event Executive shall subsequently receive income
from providing Executive’s services to any person or entity, including self
employment income, or otherwise, then no such income shall in any manner offset
or otherwise reduce the payment obligations of the Company hereunder.

 

 

7

 

The Executive has the right, at any time during the
Term, to terminate his employment with the Company without Good Reason (as
defined above) by giving written notice to the Company, which termination shall
be effective sixty (60) calendar days from the date of such written
notice.  If the Executive terminates his
employment without Good Reason, the Company’s obligation to the Executive shall
be limited solely to the payment of unpaid Base Salary accrued up to the
effective date of termination plus any accrued but unpaid bonus and benefits.

 

                (e)           Termination Upon
Disability.  The Company shall
have the right, at any time during the Term, to terminate the Executive’s
employment if, during the term hereof, the Executive becomes physically or
mentally disabled, whether totally or partially, as evidenced by the written
statement of a competent physician licensed to practice medicine in the United
States who is mutually acceptable to the Company and the Executive, so that the
Executive is unable to perform the essential functions of his job duties
hereunder, with or without reasonable accommodation, for (i) a period of
three (3) consecutive months, or (ii) for shorter periods aggregating
ninety (90) calendar days during any twelve-month period.  If the Company terminates Executive’s
employment under this Section 6(e), the Company’s obligation to the
Executive shall be limited solely to the payment of unpaid Base Salary, bonus
and benefits accrued up to the effective date of termination.

 

7.             Change of Control.

 

                (a)           Anything in this Agreement to the
contrary notwithstanding, if, upon or within one year of a Change of Control
(as defined below), the Company or a succeeding entity terminates Employee
without Cause (as defined above) at any time during the Term, the Company or
the succeeding entity’s obligation to the Executive shall be (i) unpaid
Base Salary, bonus and benefits accrued up to the effective date of
termination, (ii) a lump sum payment equal to Executive’s then-current
Base Salary for a period of twelve (12) months, to be paid within sixty (60)
calendar days following Executive’s last day of employment, and (iii) if
Executive is eligible for and timely elects COBRA coverage, payment of
Executive’s COBRA premiums for a period of up to twelve (12) months.  In the event of a without Cause Change of
Control termination as described herein, these payments shall be in lieu of,
and not in addition to, any severance pay or benefits set forth in Sections 6(c) of
this Agreement. As a condition to his receipt of the post-employment payments
and benefits under this Section 7(a), Executive shall be in compliance
with Section 5 of this Agreement, and required to execute, return, not
rescind and comply with a release of claims agreement in favor of the Company
or a succeeding entity, in a form to be prepared by the Company or a succeeding
entity.

 

                (b)           Change of Control Defined. 
A “Change of Control” means: (i)  The consummation of any merger,
consolidation, exchange, or reorganization to which the Company is a party if
the individuals and entities who were stockholders of the Company immediately
prior to the effective date of such transaction have, immediately following the
effective date of such transaction, beneficial ownership (as defined in Rule 13d-3
under the Securities Exchange Act of 1934) of less than fifty percent (50%) of
the total combined voting power of all classes of securities issued by the
surviving corporation; (ii) The stockholders of the Company approve any
plan or proposal for the liquidation of the Company; (iii) A sale, lease
or other transfer of all or substantially all of the assets of the Company to
any person or entity

 

8

 

which is not an Affiliate of the Company; or (iv) The
acquisition, without prior approval by resolution adopted by the Board, of
direct or indirect beneficial ownership (as defined in Rule 13d-3 under
the Securities Exchange Act of 1934) of securities of the Company representing,
in the aggregate, more than fifty percent (50%) or more of the total combined
voting power of all classes of the Company’s then-issued and outstanding
securities by any person or entity or by a group of associated persons or
entities acting in concert; provided, however, that a Change of Control will
not be deemed to occur if such acquisition is initiated by Participant or an
entity in which Participant owns fifty percent (50%) or more of the total combined
voting power of all classes of such entity’s securities, or if Participant or
such entity is a member of the group of associated persons or entities acting
in concert.  In all cases, the
determination of whether a Change of Control has occurred shall be made in
accordance with Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and the regulations, notices and other guidance of
general applicability issued thereunder.

 

8.             Code Section 409A. 
Notwithstanding anything herein to the contrary, if any payments to be
made to the Executive hereunder are subject to the requirements of Code Section 409A
and the Company determines that Executive is a “specified employee” as defined
in Code Section 409A as of the date of the termination, such payments
shall not be paid or commence earlier than the date that is six months after
the termination, but shall be paid or commence during the calendar year
following the year in which the termination occurs and within thirty (30)
calendar days of the earliest possible date permitted under Code Section 409A.

 

9.             Successors; Assignment,
Etc.; Third Party Beneficiaries.

 

                (a)           Executive
consents to and the Company shall have the right to assign this Agreement to
its successors or assigns.  All covenants
or agreements hereunder shall inure to the benefit of and be enforceable by or
against its successors or assigns.  The
terms “successors” and “assigns” shall include, but not be limited to, any
succeeding entity upon a Change in Control.

 

                (b)           Neither this Agreement nor any of the
rights or obligations of the Executive under this Agreement may be assigned or
delegated except as provided in the last sentence of this Section 9(b).  This Agreement and all rights of the
Executive hereunder shall inure to the benefit of and be enforceable by, and
shall be binding upon, the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and
legatees.  If the Executive should die
while any amounts would still be payable to him hereunder had he continued to
live, then all such amounts (unless otherwise provided herein) shall be paid in
accordance with the terms of this Agreement to the devisee, legatee, or other
designee under the Executive’s testamentary will or, if there be no such will,
to the Executive’s estate.

 

10.          Notice.  For purposes
of this Agreement, all notices and other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when
delivered in person or when mailed by United States registered or certified
mail, return receipt requested, first-class postage prepaid, addressed as
follows:

 

9

 

	
  If to the Executive :

  	
   

  	
  If to the Company :

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

or to such other address
as any party may have furnished to the other in writing in accordance with this
Section 10, except that notices of any change of address shall be
effective only upon actual receipt.

 

11.          Miscellaneous.  No
provision of this Agreement may be modified, waived, or discharged unless such
waiver, modification, or discharge is agreed to in writing signed by the
Executive and such officers as may be specifically designated by the board of
directors of the Company.  No waiver by
either party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of any
similar or dissimilar condition or provision at the same or any other
time.  No agreements or representations
(whether oral or otherwise, express or implied) with respect to the subject
matter of this Agreement have been made by either party which are not set forth
expressly in this Agreement or which are not specifically referred to in this
Agreement.  The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws
of the State of Wisconsin.  Unless the context otherwise requires, words
using the singular or plural number shall respectively include the plural or
singular number, and pronouns of any gender shall include each other gender.

 

12.          Validity.  If any
provision of this Agreement is held to be illegal, invalid, or unenforceable
under any present or future law or court decision, and if the rights or
obligations of the Company and the Executive will not be materially and
adversely affected thereby, (a) such provision shall be fully severable
from this Agreement, (b) this Agreement shall be construed and enforced as
if such illegal, invalid, or unenforceable provision had never comprised a part
hereof, (c) the remaining provisions of this Agreement shall remain in
full force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance herefrom, and (d) in lieu of
such illegal, invalid, or unenforceable provision, there shall be added
automatically as a part of this Agreement a legal, valid, and enforceable
provision as similar to the terms and intent of such illegal, invalid, or
unenforceable provision as may be possible.

 

13.          Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.

 

14.          Litigation.  The
parties agree that the exclusive venue for any litigation commenced by the
Company or the Executive relating to this Agreement shall be the state courts
located in Milwaukee County, Wisconsin and the United States District Court,
Eastern District of Wisconsin in Milwaukee County, Wisconsin.  The parties waive any rights to object to
venue as set forth herein, including any argument of inconvenience for any
reason.

 

15.          Entire Agreement. 
This Agreement constitutes (i) the binding agreement between the
parties and (ii) represents the entire agreement between the parties and
supersedes all prior agreements relating to the subject matter contained
herein. All prior negotiations 

 

10

 

concerning Executive’s
employment with the Company have been merged into this Agreement and are
reflected in the terms herein.

 

                IN WITNESS WHEREOF, the parties have duly executed and
delivered this Agreement as of the date first above written.

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  By: /s/ Matthew Gadow

  
	
   

  	
  Name: Matthew Gadow

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  TOWER TECH HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ Steven A. Huntington

  
	
   

  	
  Name:  Steve
  Huntington

  
	
   

  	
  Title:  Chief
  Financial Officer

  

 

 

11

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