Document:

Exhibit 10.6

 

PERFORMANCE
AWARD AGREEMENT

 

TOWER TECH
HOLDINGS INC.

2007 EQUITY
INCENTIVE PLAN

 

 

THIS AGREEMENT, is entered into and effective as of this                
day of                        ,
20        , by and between Tower Tech
Holdings Inc., a Nevada corporation (the “Company”), and                                         
(“Participant”).

 

RECITALS

 

A.            The Participant
on the date hereof is a key employee, officer or director of, or consultant or
advisor to, the Company or one of its
Affiliates; and

 

B.            The Company wishes
to grant a performance share award to Participant pursuant to the Company’s
2007 Equity Incentive Plan (the “Plan”) to
entitle the Participant to shares of the Company’s Common Stock upon the
achievement of certain specified performance criteria; and

 

C.            The Administrator
has authorized the grant of such performance share award to Participant.

 

AGREEMENTS

 

                In consideration of the premises
and of the mutual covenants herein contained, the parties hereto agree as
follows:

 

ARTICLE
I.  GRANT OF
PERFORMANCE AWARDS

 

                A.            Grant of Performance Share Award.  The Company hereby grants to Participant on
the date set forth above (the “Date of Grant”) the right to receive up to                   
(                )
Performance Shares payable in shares of Common Stock on the terms and
conditions set forth herein (the “Performance Share Award”).

 

B.            Grant of
Performance Unit Award.  The Company
hereby grants to Participant on the Date of Grant the right to receive up to                       
(               )
Performance Units having a value of $                       
per Unit (the “Per Unit Value”) payable in cash or the terms and conditions set
forth herein (the “Performance Unit Award” and, together with the Performance
Share Award, the “Performance Award”).

 

ARTICLE
II.  PERFORMANCE PERIOD

 

                The Performance Period shall be
the period beginning                                         ,
20         , and ending                            ,
20    .

 

1

 

ARTICLE
III.  PERFORMANCE OBJECTIVES AND VESTING OF 

PERFORMANCE
AWARD

 

A.            General.  Except as otherwise provided herein, the
Performance Shares or Performance Units subject to this Performance Award shall
vest only upon the achievement of all or a portion of certain Performance
Objectives, defined below, which must be achieved within the Performance Period.   The
Performance Objectives and the extent to which achievement of all or a portion
of the Performance Objectives will result in the vesting of the Performance
Shares or Performance Units are as follows:

 

	
  Performance Objective(s)

  	
   

  	
  Achievement

  	
   

  	
  Percentage or Number of

  Shares or Units Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Notwithstanding
the foregoing schedule, the Administrator may delay the vesting of all or any
portion of the Performance Awards pursuant to Article XII.J. or XII.K. herein;
provided, however, that such delay shall not extend the Performance Period
during which the above Performance Objectives must be achieved.  Subject to such other terms and conditions
set forth in this Agreement, the Participant shall not be entitled to the
issuance of any portion of the Performance Shares or Performance Units subject
to this Performance Award until the Administrator determines the number of
Performance Shares or Performance Units, if any, which have vested.

 

B.            Termination of
Employment Prior to Vesting. 
If, prior to the vesting of any Performance Shares or Performance Units,
Participant ceases to be [a key employee or officer]
[a consultant or advisor] [a director] of the Company or any
Affiliate for any reason, the Participant shall forfeit all unvested
Performance Shares or Performance Units, and this Performance Award shall
terminate; provided, however, that if the Administrator delays the vesting and
issuance of any Performance Shares or Performance Units pursuant to Article
XII.J., the Participant shall not forfeit any such Performance Shares or
Performance Units that otherwise would have vested  prior to the termination of Participant’s
relationship had such vesting not been so delayed, and, upon the issuance of
such delayed vested Performance Shares or Performance Units, this Performance
Award shall terminate.

 

C.            Termination of
Employment After Vesting But Prior to Issuance.  If Participant ceases to be [a key employee or officer] [a consultant or advisor] [a director]
of the Company or any Affiliate for any reason after Performance Shares or
Performance Units have vested but prior to the date such Shares are issued or
cash is distributed (as described in Article V hereof), then Participant (or
Participant’s estate in the event of his death) shall be entitled to receive
such

 

2

 

vested Performance Shares or Performance
Units as if such termination of employment had not occurred.  Upon the issuance of the vested Performance
Shares or Performance Units, this Performance Award shall terminate.

 

ARTICLE
IV.  CHANGE OF CONTROL

 

A.            Acceleration.  In the event of a “Change of Control,” the
Administrator may suspend, modify or terminate this Agreement or any
Performance Objectives set forth herein.

 

B.            Change of Control Defined.  For purposes of this Article IV, 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 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.

 

ARTICLE V.  FORM, TIME
OF ISSUANCE

 

The Administrator shall, within         
(     ) days after the end of the Performance Period
or at such earlier times as described in Article III above, determine the
number of Performance Shares and Performance Units that have vested pursuant to
Article III above and shall calculate the amount of cash, if any, payable to
Participant by multiplying the Per Unit Value by such number of vested
Performance Units.  Unless the
Administrator delays the vesting and issuance of such Performance Shares or

 

3

 

Performance Units pursuant to Article XII.J., such Performance Shares
or cash shall be issued in the calendar
year in which the date such Performance Shares or Performance Units
become vested; provided, however, that the Participant shall receive cash equal
to the Fair Market Value of any fractional shares.

 

ARTICLE VI.  NONTRANSFERABILITY

 

This Performance Award shall not be transferable, in whole or in part,
by Participant, other than by will or by the laws of descent and distribution,
prior to the date the risks of forfeiture described in this Agreement have
lapsed.  If Participant shall attempt any
transfer of this Performance Award prior to such date, such transfer shall be
void and this Performance Award shall terminate.

 

ARTICLE
VII.  LIMITATION OF LIABILITY

 

Nothing in this Agreement shall be construed to
(a) limit in any way the right of the Company or any Affiliate to terminate the
status of Participant as an employee of the Company at any time, or (b) be
evidence of any agreement or understanding, express or implied, that the
Company or any Affiliate will employ Participant in any particular position, at
any particular rate of compensation or for any particular period of time.

 

ARTICLE
VIII. WITHHOLDING TAXES

 

To permit the Company to comply with all applicable federal and state
income tax laws or regulations, the Company may take such action as it deems
appropriate to ensure that, if necessary, all applicable federal and state
payroll, income or other taxes are withheld from any amounts payable by the
Company to Participant.  If the Company
is unable to withhold such federal and state taxes, for whatever reason,
Participant hereby agrees to pay to the Company an amount equal to the amount
the Company would otherwise be required to withhold under federal or state
law.  Subject to such rules as the Administrator may adopt, the Administrator
may, in its sole discretion, permit Participant to satisfy such withholding tax
obligations, in whole or in part (i) by delivering shares of common stock, or
(ii) by electing to have the Company withhold shares of Common Stock otherwise
issuable to Participant as a result of the grant of Performance Shares, in
either case having a Fair Market Value, as of the date the amount of tax
to be withheld is determined under applicable tax law, equal to the minimum amount required to be withheld for tax purposes based
on the minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, that are applicable to the supplemental income
resulting from such exercise. 
Participant’s request to deliver shares or to have shares withheld for
purposes of such withholding tax obligations shall be made on or before the
date that triggers such obligations or, if later, the date that the amount of
tax to be withheld is determined under applicable tax law.  Participant’s request shall be approved by
the Administrator and otherwise comply with such rules as the Administrator may
adopt to assure compliance with Rule 16b-3 or any successor provision, as then
in effect, of the General Rules and Regulations under the Securities and
Exchange Act of 1934, if applicable.

 

4

 

ARTICLE IX.  CAPITAL ADJUSTMENTS

 

Except
as otherwise specifically provided in any employment, change of control,
severance or similar agreement executed by Participant and the Company, pursuant and subject to Section 14 of the Plan, certain
changes in the number or character of the Common Stock of the Company (through
sale, merger, consolidation, exchange, reorganization, divestiture (including a
spin-off), liquidation, recapitalization, stock split, stock dividend or
otherwise) may result in an adjustment, reduction or enlargement, as
appropriate, in the number of shares subject to this Performance Award.  Any additional shares that are credited pursuant
to such adjustment shall be subject to the same restrictions as are applicable
to the shares with respect to which the adjustment relates.

 

ARTICLE  X.  BINDING
EFFECT

 

This Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties hereto.

 

ARTICLE XI.  2007 EQUITY INCENTIVE PLAN 

 

The Performance Award represented by this
Agreement has been granted under, and is subject to the terms of, the
Plan.  The terms of the Plan are hereby
incorporated by reference herein in their entirety and Participant, by execution
hereof, acknowledges having received a copy of the Plan.  Capitalized terms not defined herein shall
have the meaning set forth in the Plan. 
The provisions of this Agreement shall be interpreted as to be
consistent with the Plan and any ambiguities herein shall be interpreted by
reference to the Plan.  In the event that
any provision hereof is inconsistent with the terms of the Plan, the latter
shall prevail.

 

ARTICLE
XII.  MISCELLANEOUS

 

A.            Employment or Other Relationship; Rights as a Stockholder.  This
Agreement shall not confer on Participant any right with respect to the
continuance of employment by the Company or any of its Affiliates, nor will it
interfere in any way with the right of the Company to terminate such
employment.  Participant shall have no
rights as a stockholder with respect to shares issued under this Agreement
until such shares have been issued to Participant.  No adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property),
distributions or other rights for which the record date is prior to the date
such shares are issued, except as provided in Section 14 of the Plan.

 

B.            Securities Law Compliance.  Participant shall not transfer or otherwise
dispose of the shares of Stock received pursuant to this Agreement until such
time as counsel to the Company shall have determined that such transfer or
other disposition will not violate any state or federal securities laws.  Participant may be required by the Company,
as a condition of the effectiveness of this Performance Award, to agree in
writing that all Stock subject to this Agreement shall be held, until such time
that such Stock is registered and freely tradable under applicable state and
federal securities laws, for Participant’s own account without a view to any

 

5

 

further
distribution thereof, that the certificates for such shares shall bear an
appropriate legend to that effect and that such shares will be not transferred
or disposed of except in compliance with applicable state and federal
securities laws.

 

C.            Lockup
Period Limitation.  Participant
agrees that in the event the Company advises Participant that it plans an
underwritten public offering of its Common Stock in compliance with the
Securities Act of 1933, as amended, and that the underwriter(s) seek to impose
restrictions under which certain stockholders may not sell or contract to sell
or grant any option to buy or otherwise dispose of part or all of their stock
purchase rights of the underlying Common Stock, Participant hereby agrees that
for a period not to exceed 180 days from the prospectus, Participant will not
sell or contract to sell or grant an option to buy or otherwise dispose of this
Performance Award or any of the underlying shares of Common Stock without the
prior written consent of the of the underwriter(s) or its
representative(s).

 

D.            Blue
Sky Limitation.  Notwithstanding
anything in this Agreement to the contrary, in the event the Company makes any
public offering of its securities and determines, in its sole discretion, that
it is necessary to reduce the number of issued but unexercised stock purchase
rights so as to comply with any state securities or Blue Sky law limitations
with respect thereto, the Administrator of the Company shall accelerate the
vesting of this restricted stock award, provided that the Company gives
Participant 15 days’ prior written notice of such acceleration.  Notice shall be deemed given when delivered
personally or when deposited in the United States mail, first class postage
prepaid and addressed to Participant at the address of Participant on file with
the Company.

 

E.             Accounting
Compliance.  Participant agrees that,
if a merger, reorganization, liquidation or other “transaction” (as defined in
Article IV.B. of this Agreement) occurs, and Participant is an “affiliate” of
the Company or any Affiliate (as defined in applicable legal and accounting
principles) at the time of such transaction, Participant will comply with all
requirements of Rule 145 of the Securities Act of 1933, as amended, and the
requirements of such other legal or accounting principles, and will execute any
documents necessary to ensure such compliance.

 

F.             Stock
Legend.  The Administrator may
require that the certificates for any shares of Common Stock issued to
Participant (or, in the case of death, Participant’s successors)  under this Agreement shall bear an
appropriate legend to reflect the restrictions of this Article; provided,
however, that failure to so endorse any of such certificates shall not render
invalid or inapplicable this Article XII.

 

G.            Shares Reserved.  The
Company shall at all times during the term of this Performance Award reserve and keep available such number of
shares as will be sufficient to satisfy the requirements of this Agreement.

 

H.            Arbitration.  Any dispute arising out of or relating to
this Agreement or the alleged breach of it, or the making of this Agreement,
including claims of fraud and inducement, shall be discussed between the
disputing parties in a good faith effort to arrive at a mutual settlement of
any such controversy.  If,
notwithstanding, such dispute cannot be resolved, such dispute shall be settled
by binding arbitration.  Judgment upon
the award rendered by the arbitrator may be entered in any

 

6

 

court having jurisdiction thereof.  The arbitrator shall be a retired state or
federal judge or an attorney who has practiced securities or business
litigation for at least ten (10) years. 
If the parties cannot agree on an arbitrator within twenty (20) days,
any party may request that a judge of the Circuit Court of Manitowoc County,
Wisconsin select an arbitrator. 
Arbitration will be conducted pursuant to the provisions of this
Agreement and the commercial arbitration rules of the American Arbitration
Association, unless such rules are inconsistent with the provisions of this
Agreement.  Limited civil discovery shall
be permitted for the production of documents and taking of depositions.  Unresolved discovery disputes may be brought
to the attention of the arbitrator who may dispose of such disputes.  The arbitrator shall have the authority to
award any remedy or relief that a court of this state could order or grant;
provided, however, that punitive or exemplary damages shall not be
awarded.  The arbitrator may award to the
prevailing party, if any, as determined by the arbitrator, all of its costs and
fees, including the arbitrator’s fee, administrative fees, travel expenses,
out-of-pocket expenses and reasonable attorney’s fees.  Unless otherwise agreed by the parties, the
place of any arbitration proceedings shall be Green Bay, Wisconsin.

 

I.              Right
to Amend.  The Company hereby
reserves the right to amend this Agreement without Participant’s consent to the
extent necessary or desirable to comply with the requirements of Code Section
409A and the regulations, notices and other guidance of general application
issued thereunder.

 

J.             Delay of Payment for Section 162(m).  In the event the Administrator reasonably
anticipates that the Company’s income tax deduction with respect to the vesting
and issuance of any shares of Stock or Performance Units required by this
Agreement would be limited or eliminated by Code Section 162(m), the
Administrator may, subject to such terms and conditions as determined by the
Administrator, delay the vesting and issuance of all or a portion of such
Performance Units or shares of Stock until the earlier of (i) the date at which
the Administrator reasonably anticipates that the corresponding income tax
deduction will not be so limited or eliminated, and (ii) the calendar year of
the Participant’s separation from service, as such term is defined in Code
Section 409A and the regulations, notices and other guidance of general
applicability issued thereunder.  In the
event of such delay, this Performance Award shall not terminate until the
delayed vesting and issuance of such Performance Shares or vesting and payment
of such Performance Units has occurred.

 

K.            Delay in Payment for Specified Employee.  In the event this Performance Award is
subject to Code Section 409A and the Administrator determines that the
Participant is a “specified employee” within the meaning of Code Section 409A,
then the issuance of any shares of Stock due to the Participant’s separation
from service shall not be issued earlier than the date that is six months after
such separation from service, but shall be issued during the calendar year
following the year in which the Participant’s separation from service occurs
and within thirty (30) days after the earliest possible date permitted under
Code Section 409A.

 

ARTICLE
XIII.  GOVERNING LAW

 

This Agreement and all rights and obligations
hereunder shall be construed in accordance with the Plan and governed by the
laws of the State of Wisconsin.

 

7

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement effective the day and year first above written.

 

	
   

  	
  TOWER TECH HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
  By execution hereof, the

  	
   

  
	
  Participant acknowledges having

  	
   

  
	
  received a copy of the Plan.

  	
   

  

 

8Exhibit 10.7

 

STOCK
APPRECIATION RIGHTS AGREEMENT

 

TOWER TECH
HOLDINGS INC.

2007
EQUITY INCENTIVE PLAN

 

THIS AGREEMENT, made effective as of this         
day of                         ,
20    , by and between Tower Tech Holdings Inc., a Nevada
corporation (the “Company”), and                                     
(“Participant”).

 

RECITALS

 

A.            Participant
on the date hereof is a key employee, officer or director of, or consultant or
advisor to, the Company or one of its Affiliates; and

 

B.            The
Company wishes to grant a stock appreciation right to Participant to pursuant
to the Company’s 2007 Equity Incentive Plan (the “Plan”); and

 

C.            The
Administrator of the Plan has authorized the grant of a stock appreciation
right to Participant and has determined that, as of the effective date of this
Agreement, the fair market value of the Company’s Common Stock is                                                   
Dollars ($        ) per share (the “Exercise
Price”).

 

AGREEMENTS

 

In consideration of the premises and of the
mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE
I. GRANT OF SAR

 

The Company hereby grants to Participant on
the date set forth above (the “Date of Grant”), stock appreciation rights (the “SAR”)
with respect to an aggregate of                                           
(                )
shares of Common Stock at the Exercise Price on the terms and conditions set
forth herein, and subject to adjustment pursuant to Section 14 of the Plan.

 

ARTICLE
II. DURATION AND EXERCISABILITY

 

A.            General.
The term during which the SAR may be exercised shall terminate on                                       ,
                ,  except as otherwise provided in Articles II.B. and II.C.
below. The SAR shall vest and become exercisable according to the following
schedule:

 

 

	
  Vesting Date

  	
   

  	
  Cumulative Percentage

  of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Once the SAR becomes fully exercisable, Participant may continue to
exercise the SAR under the terms and conditions of this Agreement until the
termination of the SAR as provided herein. If Participant does not exercise the
SAR with respect to the full number of shares for which Participant is then
entitled, Participant may, upon any subsequent exercise prior to the SAR’s
termination, exercise the SAR for such previously unexercised portion.

 

B.            Termination
of Employment for Reasons Other Than Death or Disability. Except as
provided in Article III below, in the event Participant ceases to be [a key employee or officer] [a consultant or advisor]
[a director] of the Company or any Affiliate for any reason other
than death or an event that constitutes permanent and total disability within
the meaning of Section 22(e)(3) of the Code (“Disability”), any unexercised
portion of this SAR which was exercisable as of the date of such termination
may be exercised, in whole or in part, by Participant before the earlier of (i)
the close of business on the three-month anniversary date of such termination
of employment, and (ii) the Expiration Date. To the extent this SAR was not
exercisable upon such termination of employment, or if Participant does not
exercise the unexercised portion of the SAR that was exercisable within the
time specified in this Article II.B., all rights of Participant under this SAR
shall terminate, and the SAR shall thereafter be void.

 

C.            Termination
of Employment Due to Death or Disability. In the event Participant ceases
to be [a key employee or officer] [a
consultant or advisor] [a director] of the Company or any Affiliate
by reason of death or Disability, any unexercised portion of this SAR which was
exercisable as of the date of such termination may be exercised, in whole or in
part, by Participant (or by Participant’s heirs or legal representative(s) in
the event of death or Disability) before the earlier of (i) the close of
business on the twelve-month anniversary date of such termination of employment
and (ii) the Expiration Date. To the extent this SAR was not exercisable upon
such termination of employment, or if Participant does not exercise the unexercised
portion of the SAR that was exercisable within the time specified in this
Article II.C., all rights of Participant under this SAR shall terminate, and
the SAR shall thereafter be void.

 

ARTICLE
III. CHANGE OF CONTROL

 

A.            Acceleration.
In the event of a “Change of Control,” the risks of forfeiture on all shares of
Stock subject to this SAR shall immediately lapse.

 

B.            Change of Control
Defined. For purposes of this Article III, 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 

 

2

 

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 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.

 

ARTICLE
IV. MANNER OF EXERCISE AND
PAYMENT

 

A.            General. The SAR may be exercised only
by Participant (or other proper party in the event of death or incapacity),
subject to the conditions of the Plan and subject to such other administrative
rules as the Administrator may deem advisable, by delivering written notice of
exercise to the Company at its principal office. The notice shall state the
number of shares as to which the SAR is being exercised. The exercise of the
SAR shall be deemed effective upon receipt of such notice by the Company, and
the date of such receipt shall be the “date of exercise” for all purposes under
this Agreement. The SAR may be exercised with respect to some or all of the
exercisable shares and, if partially exercised, may be so exercised as to the
unexercised shares any number of times during the term of the SAR as provided
herein.

 

B.            Form
of Payment. Upon the exercise of all or a portion of the SAR, Participant
shall be entitled to (1) that number of shares of Stock having an aggregate
Fair Market Value equal to (i) the excess of (A) the per share Fair Market
Value of the Company’s Common Stock as of the date of exercise over (B) the per
share exercise price specified in Article I above, multiplied by (ii) the
number of shares specified in the Participant’s notice of exercise; (2) a cash
payment equal to (i) the excess of (A) the per share Fair Market Value of the
Company’s Common Stock as of the date of exercise over (B) the per share
exercise price specified in Article I above, multiplied by (ii) the number of
shares specified in the Participant’s notice of exercise; OR (3) a
combination of cash and shares of stock having a value equal to (i) the excess
of (A) the per share Fair Market Value of the Company’s Common Stock as of the
date of exercise over (B) the per share exercise price specified in Article I
above, multiplied by (ii) the number of shares specified in the Participant’s
notice of exercise. Participant may indicate his or her preference for the form
of settlement of the SAR, however the Administrator shall make the final
determination of whether the SAR is settled in Common Stock, cash, or a
combination thereof.

 

3

 

C.            Stock Transfer Records. As soon as
practicable after the effective exercise of all or any part of the SAR,
Participant shall be recorded on the stock transfer books of the Company as the
owner of the shares purchased, and the Company may deliver to Participant one
or more duly issued stock certificates evidencing such ownership. All requisite
original issue or transfer documentary stamp taxes shall be paid by the Company.

 

ARTICLE
V. NONTRANSFERABILITY

 

This SAR shall not be transferable, in whole
or in part, by Participant, other than by will or by the laws of descent and
distribution, prior to the date the risks of forfeiture described in this
Agreement have lapsed. If Participant shall attempt any transfer of this SAR
prior to such date, such transfer shall be void and this SAR shall terminate.

 

ARTICLE VI.
LIMITATION OF LIABILITY

 

Nothing in this Agreement shall be construed
to (a) limit in any way the right of the Company or any Affiliate to terminate
the status of Participant as an employee of the Company at any time, or (b) be
evidence of any agreement or understanding, express or implied, that the
Company or any Affiliate will employ Participant in any particular position, at
any particular rate of compensation or for any particular period of time.

 

ARTICLE
VII. WITHHOLDING TAXES

 

To permit the Company to comply with all
applicable federal and state income tax laws or regulations, the Company may
take such action as it deems appropriate to ensure that, if necessary, all
applicable federal and state payroll, income or other taxes are withheld from
any amounts payable by the Company to Participant. If the Company is unable to
withhold such federal and state taxes, for whatever reason, Participant hereby
agrees to pay to the Company an amount equal to the amount the Company would
otherwise be required to withhold under federal or state law. Subject to such rules as the Administrator
may adopt, the Administrator may, in its sole discretion, permit Participant to
satisfy such withholding tax obligations, in whole or in part (i) by delivering
shares of common stock, or (ii) by electing to have the Company withhold shares
of Common Stock otherwise issuable to Participant as a result of the exercise
of this SAR, in either case having a Fair Market Value, as of the date
the amount of tax to be withheld is determined under applicable tax law, equal to the minimum amount required to be
withheld for tax purposes based on the minimum statutory withholding rates for
federal and state tax purposes, including payroll taxes, that are applicable to
the supplemental income resulting from such exercise. Participant’s request to
deliver shares or to have shares withheld for purposes of such withholding tax
obligations shall be made on or before the date that triggers such obligations
or, if later, the date that the amount of tax to be withheld is determined
under applicable tax law. Participant’s request shall be approved by the
Administrator and otherwise comply with such rules as the Administrator may
adopt to assure compliance with Rule 16b-3 or any successor provision, as then
in effect, of the General Rules and Regulations under the Securities and
Exchange Act of 1934, if applicable.

 

4

 

ARTICLE
VIII. CAPITAL ADJUSTMENTS

 

Except as otherwise specifically provided in
any employment, change of control, severance or similar agreement executed by
Participant and the Company, pursuant and subject to Section 14 of the Plan,
certain changes in the number or character of the Common Stock of the Company
(through sale, merger, consolidation, exchange, reorganization, divestiture
(including a spin-off), liquidation, recapitalization, stock split, stock dividend
or otherwise) may result in an adjustment, reduction or enlargement, as
appropriate, in the number of shares subject to this SAR. Any additional shares
that are credited pursuant to such adjustment shall be subject to the same
restrictions as are applicable to the shares with respect to which the
adjustment relates.

 

ARTICLE IX.
BINDING EFFECT

 

This Agreement shall be binding upon the
heirs, executors, administrators and successors of the parties hereto.

 

ARTICLE X.
2007 EQUITY INCENTIVE PLAN 

 

The SAR represented by this Agreement has
been granted under, and is subject to the terms of, the Plan. The terms of the
Plan are hereby incorporated by reference herein in their entirety and
Participant, by execution hereof, acknowledges having received a copy of the
Plan. Capitalized terms not defined herein shall have the meaning set forth in
the Plan. The provisions of this Agreement shall be interpreted as to be
consistent with the Plan and any ambiguities herein shall be interpreted by
reference to the Plan. In the event that any provision hereof is inconsistent
with the terms of the Plan, the latter shall prevail.

 

ARTICLE
XI. MISCELLANEOUS

 

A.            Employment or Other Relationship; Rights as a
Stockholder. This Agreement shall not confer on Participant any right
with respect to the continuance of employment by the Company or any of its
Affiliates, nor will it interfere in any way with the right of the Company to
terminate such employment. Participant shall have no rights as a stockholder
with respect to shares issued under this Agreement until such shares have been
issued to Participant. No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property), distributions or
other rights for which the record date is prior to the date such shares are
issued, except as provided in Section 14 of the Plan.

 

B.            Securities Law Compliance. Participant
shall not transfer or otherwise dispose of the shares of Stock received
pursuant to this Agreement until such time as counsel to the Company shall have
determined that such transfer or other disposition will not violate any state
or federal securities laws. Participant may be required by the Company, as a
condition of the effectiveness of this SAR, to agree in writing that all Stock
subject to this Agreement shall be held, until such time that such Stock is
registered and freely tradable under applicable state and federal securities
laws, for Participant’s own account without a view to any further distribution
thereof, that the certificates for such shares shall bear an appropriate legend
to that effect and that such shares will be not transferred or disposed of
except in compliance with applicable state and federal securities laws.

 

5

 

C.            Lockup Period
Limitation. Participant agrees that in the event the Company advises
Participant that it plans an underwritten public offering of its Common Stock
in compliance with the Securities Act of 1933, as amended, and that the
underwriter(s) seek to impose restrictions under which certain stockholders may
not sell or contract to sell or grant any option to buy or otherwise dispose of
part or all of their stock purchase rights of the underlying Common Stock,
Participant hereby agrees that for a period not to exceed 180 days from the
prospectus, Participant will not sell or contract to sell or grant an option to
buy or otherwise dispose of this SAR or any of the underlying shares of Common
Stock without the prior written consent of the of the underwriter(s) or its
representative(s).

 

D.            Blue
Sky Limitation. Notwithstanding anything in this Agreement to the contrary,
in the event the Company makes any public offering of its securities and
determines, in its sole discretion, that it is necessary to reduce the number
of issued but unexercised stock purchase rights so as to comply with any state
securities or Blue Sky law limitations with respect thereto, the Administrator
of the Company shall accelerate the vesting of this restricted stock award, provided
that the Company gives Participant 15 days’ prior written notice of such
acceleration. Notice shall be deemed given when delivered personally or when
deposited in the United States mail, first class postage prepaid and addressed
to Participant at the address of Participant on file with the Company.

 

E.             Accounting
Compliance. Participant agrees that, if a merger, reorganization,
liquidation or other “transaction” (as defined in Article V.B. of this
Agreement) occurs, and Participant is an “affiliate” of the Company or any
Affiliate (as defined in applicable legal and accounting principles) at the
time of such transaction, Participant will comply with all requirements of Rule
145 of the Securities Act of 1933, as amended, and the requirements of such other
legal or accounting principles, and will execute any documents necessary to
ensure such compliance.

 

F.             Stock
Legend. The Administrator may require that the certificates for any shares
of Common Stock issued to Participant (or, in the case of death, Participant’s
successors)  under this Agreement shall
bear an appropriate legend to reflect the restrictions of this Article;
provided, however, that failure to so endorse any of such certificates shall
not render invalid or inapplicable this Article X.

 

G.            Shares Reserved. The Company shall
at all times during the term of this SAR reserve and keep available such number
of shares as will be sufficient to satisfy the requirements of this Agreement.

 

H.            Arbitration.
Any dispute arising out of or relating to this Agreement or the alleged breach
of it, or the making of this Agreement, including claims of fraud and
inducement, shall be discussed between the disputing parties in a good faith
effort to arrive at a mutual settlement of any such controversy. If, notwithstanding,
such dispute cannot be resolved, such dispute shall be settled by binding
arbitration. Judgment upon the award rendered by the arbitrator may be entered
in any court having jurisdiction thereof. The arbitrator shall be a retired
state or federal judge or an attorney who has practiced securities or business
litigation for at least ten (10) years. If the parties cannot agree on an
arbitrator within twenty (20) days, any party may request that a judge of the
Circuit Court of Manitowoc County, Wisconsin select an arbitrator. Arbitration
will be conducted pursuant to the provisions of this Agreement and the
commercial arbitration rules of the American Arbitration Association, unless
such rules are inconsistent with the provisions of this Agreement. Limited
civil discovery shall be permitted for the production of documents and taking
of 

 

6

 

depositions. Unresolved discovery disputes may be brought to the
attention of the arbitrator who may dispose of such disputes. The arbitrator
shall have the authority to award any remedy or relief that a court of this
state could order or grant; provided, however, that punitive or exemplary
damages shall not be awarded. The arbitrator may award to the prevailing party,
if any, as determined by the arbitrator, all of its costs and fees, including
the arbitrator’s fee, administrative fees, travel expenses, out-of-pocket
expenses and reasonable attorney’s fees. Unless otherwise agreed by the
parties, the place of any arbitration proceedings shall be Green Bay,
Wisconsin.

 

I.              Right
to Amend. The Company hereby reserves the right to amend this Agreement
without Participant’s consent to the extent necessary or desirable to comply
with the requirements of Code Section 409A and the regulations, notices and
other guidance of general application issued thereunder.

 

ARTICLE
XII. GOVERNING LAW

 

This Agreement and all rights and obligations
hereunder shall be construed in accordance with the Plan and governed by the
laws of the State of Wisconsin.

 

[Signature
page  follows.]

 

7

 

                IN WITNESS
WHEREOF, the parties hereto have executed this Agreement effective the day and
year first above written.

 

 

	
  

  	
  TOWER TECH HOLDINGS INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  	
   

  
	
  By execution hereof, the

  	
   

  	
   

  
	
  Participant acknowledges having

  	
   

  	
   

  
	
  received a copy of the Plan.

  	
   

  	
   

  

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]