Document:

Exhibit 10.5

 

AMENDED AND RESTATED

LEASE FOR INDUSTRIAL/MANUFACTURING SPACE

(Main Facility)

 

THIS
INDENTURE OF LEASE (this “Lease”) is made and entered into as of this 1st day
of May, 2010 by and between City Centre, L.L.C., a Wisconsin limited liability
company, party of the first part, and hereinafter referred to as “Landlord,”
and Tower Tech Systems Inc., a Wisconsin corporation, party of the second part,
and hereinafter referred to as “Tenant.”

 

WHEREAS:

 

A.            Landlord owns that
certain land in the City of Manitowoc, Wisconsin shown on the site plan
attached hereto as Exhibit A (the “Site Plan”), and commonly known as the “Peninsula”.

 

B.            Landlord and Tenant
entered into that certain January 1, 2005 Lease for
Industrial/Manufacturing Space, relating to that premises commonly known as 101
S. 16th Street, in the City of Manitowoc, Wisconsin (as subsequently amended,
the “Original Lease”).

 

C.            Landlord and Tenant
are desirous of amending and restating the terms and conditions of the Original
Lease as set forth herein.

 

WITNESSETH:

 

This
Lease amends and restates, and supersedes in its entirety, the Original Lease,
effective as of the date hereof.

 

1.             DESCRIPTION
OF PREMISES.  The Main
Premises, Area A, Area C1 and Area D shall be referred to collectively as the “Premises”:

 

(a)           Main Premises.  Landlord demises and leases unto the Tenant,
and the Tenant does hereby hire and rent from the Landlord, the premises
identified as the “Main 

 

 

Premises”
on the Site Plan (excluding, however, building #222 situated therein) upon the
terms and conditions hereinafter specifically set forth.   The Main Premises contains 389,000 square
feet, more or less, and the buildings within the Main Premises contain 176,538
square feet, more or less.  The Main
Premises is commonly known as 100 S. 16th Street, in the City of Manitowoc,
Wisconsin.

 

(c)           Area A.  Landlord demises and leases unto the Tenant,
and the Tenant does hereby hire and rent from the Landlord, the premises
identified as the “Area A” on the Site Plan upon the terms and conditions
hereinafter specifically set forth, for the purposes of staging Tenant’s
materials and inventory, access to the Railroad Spur described below, and
related uses.  Landlord shall retain the
right to use the portion of Area A not occupied by Tenant, so long as Landlord’s
use does not interfere with Tenant’s permitted use of Area A.  Area A contains 155,000 square feet, more or
less.

 

(d)           Area C1 and Area D.  Landlord demises and leases unto the Tenant,
and the Tenant does hereby hire and rent from the Landlord, the two premises
identified as the “Area C1” and “Area D” on the Site Plan upon the terms and
conditions hereinafter specifically set forth, for the purposes of employee
parking.  Landlord shall retain the right
to use the portion of Area C1and Area D not occupied by Tenant, so long as
Landlord’s use does not interfere with Tenant’s permitted use of Area C1 and
Area D.  Area C1 contains 32,500 square
feet, more or less, and Area D contains 18,400 square feet, more or less.

 

1a.           RAILROAD SPUR.

 

(a)           Railroad Spur Easement.  Upon the request of Tenant, Landlord agrees
to execute and deliver a railroad spur easement in a reasonable form, granting
an easement for spur track purposes over and across that certain property
identified as the “50’ Railroad Spur” on

 

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the
Site Plan, which property is partially located within the Premises and
partially located on certain adjacent property owned by Landlord (the “Rail
Spur Easement”).

 

(b)           Construction and Operation
of  Railroad Spur.  Tenant, at its sole cost and expense, may
build a railroad spur track (the “Railroad Spur”) within the Railroad Spur
Easement Area described in the Railroad Spur Easement.  The Railroad Spur shall be used exclusively
by Tenant, except that Tenant may grant a related entity which controls Tenant,
is controlled by Tenant, or is under common control with Tenant, including but
not limited to R. B. A. Inc., a Wisconsin corporation, access to the Railroad
Spur Easement Area to utilize the Railroad Spur.  Landlord shall have no right to revenues, if
any, derived by Tenant from the Railroad Spur. 
Notwithstanding the foregoing, to the extent that Tenant owns the
Railroad Spur, Tenant will transfer its interest in the Railroad Spur to Landlord
upon the earlier to occur of: i) the termination of the Lease or ii) Tenant
ceasing operations at the Premises for a period of ninety (90) days or more,
except in the case of a fire or other casualty, governmental action or other
cause beyond Tenant’s reasonable control. 
Tenant through its operation of the Railroad Spur shall not permit the
blockage of access to the City Centre facilities via Center Street or access to
the south overhead doors of building #323.

 

(c)           Governmental Approvals.  Landlord shall cooperate and join in any
applications necessary in order to obtain the necessary governmental approvals
for the Railroad Spur, at no cost to Landlord.

 

1b.           PORT FACILITY.  Landlord, at its sole cost and expense, shall
use its best efforts to obtain port of entry clearance for “The Peninsula” port
(the “Port Facility”), which is located adjacent to the Premises.  Tenant at its sole cost and expense, shall
pay all security costs associated its use of the Port Facility, including but
not limited to security at the gate to the Port 

 

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Facility,
to the extent such security is required by applicable governmental laws, rules or
regulations.   Landlord may retain any
and all revenues derived from operation of the Port Facility.  Notwithstanding the foregoing, Tenant shall
be permitted to utilize the Port Facility at no cost to Tenant, only on Tenant’s
rented Premises.  Tenant or people that
Tenant hires shall cause no damage to property or seawall.  If there is any such damage, Tenant is
responsible to repair the damage at its expense.

 

2.             TERM OF
LEASE. The original term of this Lease shall commence on the
date hereof, and end at midnight on December 31, 2014.  The Tenant is granted five (5) options
to renew this Lease.  Each option is for
five (5) years beginning at the end of the lease period just ended.  The Tenant must give a six (6) month
written notice prior to the end of any lease period stating that the Tenant
wishes to exercise the next option period.

 

3.             RENTAL.  The Tenant shall pay to the Landlord at 100
Maritime Drive, Suite 3C, Manitowoc, Wisconsin 54220, or at such other
place as the Landlord shall from time to time designate in writing, rental
computed as follows commencing as of the date hereof:

 

(a)           Base Year Rent.  Rent shall be payable as follows:

 

	
  Premises

  	
   

  	
  Per Month

  	
   

  	
  Per Year

  	
   

  
	
  Main Premises (excluding
  Bldg. #222)

  	
   

  	
  $

  	
  44,134.50

  	
   

  	
  $

  	
  529,614.00

  	
   

  
	
  Area A, Area C1 and Area D

  	
   

  	
  $

  	
  3,545.11

  	
   

  	
  $

  	
  42,541.32

  	
   

  
	
  Total

  	
   

  	
  $

  	
  47,679.61

  	
   

  	
  $

  	
  572,155.32

  	
   

  

 

This
annual rent is a base year rent which includes 100% of the base year Real
Estate taxes and building insurance (2008). 
Notwithstanding the foregoing, for the month of May 2010 only, the
parties hereby agree that the rent shall be $79,940.29.

 

(b)           Additional Rent.  Any other monetary obligations of the Tenant
contained herein shall be considered additional rent and shall be paid as the
same becomes due.

 

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(c)           Penalty for Late Rent.  Should Tenant pay rent later than the seventh
(7th) day of any month during the term of this Lease, the Tenant agrees to pay
a late fee of One Hundred Dollars ($100.00) per day.

 

(d)           Option Period Rent.  The rent during any option period shall be
the base rent for the prior lease year times the increase in the rate of
inflation based on the Consumer Price Index (CPI) for each prior year since the
last increase.

 

4.             USE OF
PREMISES.  The Premises
shall be used by the Tenant for manufacturing and related purposes.

 

5.             OBLIGATIONS
OF LANDLORD.

 

(a)           Maintenance and Repair.  Landlord, at its expense, shall maintain the
roof of the buildings and outside walls in good condition of repair and
maintenance, and shall keep and maintain the exterior of said building and the
common areas in good, sightly, and reasonably attractive condition.  Provided, however, that the Landlord shall
not be obligated and the Tenant shall be obligated to make any repairs made
necessary by the fault or negligence of the Tenant its employees, clients, or
invitees, unless such repairs are covered by the Landlord’s or Tenant’s
insurance contracts, in which case the Tenant shall only be responsible for the
costs of repair in excess of the proceeds of the Landlord’s or Tenant’s
insurance contract.

 

(b)           Guarantee of Tenant’s Peaceful
Possession.  If and while
the Tenant shall and does perform all and singular the covenants herein agreed
to be performed by the Tenant, the Landlord shall and does hereby warrant and
defend the Tenant in the enjoyment and peaceful possession of said Premises
during the term of this Lease or any renewal thereof.

 

(c)           Insurance Coverage.  During the term of this Lease or any renewal
thereof, the Landlord shall procure and maintain, at its expense, fire
insurance with extended 

 

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coverage
endorsement, with Tenant named as an Additional Named Insured, and in the full
replacement value of said building, and shall deliver a certificate evidencing
such insurance to Tenant.  Provided,
however, that the Landlord shall not be obligated to insure the fixtures
furnished and other equipment installed in the Premises by the Tenant and/or
owned by the Tenant.  The Landlord shall
carry adequate public liability insurance covering its ownership of said
Premises, and shall carry adequate public liability insurance covering said
building, parking lot, sidewalks, and other common areas.  Such policies of insurance must be written
with insurance carriers rated by A.M Best Company as A IIIV or better, and
admitted to write insurance in the State of Wisconsin. Such insurance shall not
be cancelled, discontinued, or altered without thirty (30) days written notice
to the Tenant.

 

The
parties acknowledge that Tenant procured and maintained property insurance for
the Premises at its expense prior to January 20, 2009, although such
insurance was a Landlord obligation under the Original Lease.  From and after such date Landlord has and
shall continue to procure and maintain the insurance required pursuant to this Section 5(c).

 

(d)           Real Property Taxes.  From and after the date hereof, Year 2008
Real Estate Taxes (ending 12/31/08) shall be considered the “Base Year Taxes”.  Landlord will pay that portion of Tenant’s
real estate tax liability each year. 
Each subsequent year from and after the date hereof, Tenant shall pay
forty-seven and 7/10 percent (47.7%) of any increase over the base year real
estate taxes and special Improvement taxes assessed or levied, and Landlord
shall pay the remainder of such taxes. 
Said payment is due within thirty (30) days of receipt of said bill
against the entire property known as the City Centre Peninsula and Wollmer
Street property.

 

The
parties acknowledge that prior to the date hereof, Year 2007 Real Estate Taxes
(ending 12/31/07) were the applicable Base Year Taxes under the Original Lease,
and as 

 

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of
the date hereof Landlord has not yet collected Tenant’s portion of any increase
in the applicable Base Year Taxes from January 1, 2008 through December 31,
2008, as provided under the Original Lease. 
Because the applicable taxes decreased from 2007 to 2008, no payment is
due from Tenant to Landlord relating to such taxes.

 

(e)           Removal of Snow.  Tenant, at its expense, shall keep the
sidewalks, doorways, loading and parking area, and any material storage
reasonably free of ice and snow.

 

6.             OBLIGATIONS
OF TENANT.

 

(a)           Payment of Rentals.  The Tenant shall pay at the time and in the
manner heretofore specified the rents herein reserved and such rental shall be
payable at 100 Maritime Drive, Suite 3C, Manitowoc, Wisconsin 54220, or at
such other place as the Landlord shall from time to time designate in writing.

 

(b)           Heating, Cooling,
Electrical and Fire Sprinklers. 
The Tenant shall provide, install and maintain the necessary facilities
and equipment to provide heating, cooling, electrical, and fire sprinkler
systems for the Premises as Tenant deems necessary.  The Tenant shall pay for all energy costs for
heating and cooling the Premises.  Tenant
shall also provide and maintain the necessary electrical facilities and
services as required by Tenant’s business at Tenant’s expense.  To the best of Landlord’s knowledge, no
changes are required by applicable governmental laws, rules or regulations
to the fire sprinkler systems for the Premises now or in the future, and
Landlord has not received any notice of any potential changes required by
applicable governmental laws, rules or regulations.

 

(c)           Utilities.  The Tenant shall pay for all electric power,
sewer, and water consumed upon the Premises for any purpose whatsoever.  Separate electric meters shall be 

 

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installed
by the Tenant so as to accurately meter electric current consumed on the
Premises.  Tenant shall be obligated to
install, maintain and replace all required lighting fixtures and bulbs.

 

(d)           Interior Decorating.  Tenant, at its expense, shall keep the
Premises clean and neat and in a reasonably attractive condition.  All decorations of the Premises other than
the original decorations shall be at the Tenant’s expense.  Tenant may also renovate the exterior of the
Premises with the permission of the Landlord.

 

(e)           Maintenance of Interior.  Tenant at its expense, shall maintain the
interior of the Premises, including all walls, floors, ceilings, hallways and
bathrooms.  Tenant shall keep said
Premises neat, clean and orderly, providing the staff necessary to keep the
Premises in the condition required in this Lease.

 

(f)            Personal Property Taxes.  Tenant shall, at its expense, pay all
personal property taxes when said taxes are due.

 

(g)           Additional Outside Areas.  Any other outside areas within the Premises
utilized by Tenant shall be maintained by Tenant throughout the term of this
Lease.

 

(g.1)        Cranes.  Tenant shall have the obligation to repair
and maintain the overhead cranes in the Premises at Tenant’s cost.  Tenant will keep all such cranes in good
operating condition throughout the term of this Lease and the same will be in
good operating condition on the last day of this Lease, reasonable wear and
tear and damage from insured casualty excepted.

 

(h)           Signs.  Tenant shall have the right to erect a sign
on the exterior portion of the building, and signage on the interior of the
building, provided, however, that any such sign and its location shall first be
approved by Landlord prior to installation, which approval shall not be
unreasonably withheld.

 

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(i)            Surrender Possession on
Termination of Lease. 
Tenant, upon termination of this Lease, in any manner, will surrender to
Landlord possession of the Premises in good condition and repair, ordinary wear
and tear excepted, and loss through fire and other insurable risk excepted, and
will deliver up the keys to the Landlord. 
Should Tenant holdover with or without Landlord’s consent, this Lease
shall continue under the same terms and conditions contained herein, but shall
become a month-to-month tenancy.

 

(j)            Use of Premises.  Tenant shall not
allow said Premises to be used for any purpose that will increase the rate of
insurance thereon, nor for any purpose other than that of preparation of and
distribution of steel products and related uses, nor shall Tenant permit said
Premises to be used for any unlawful or immoral purposes or for any purpose
that will injure the reputation of the Premises, and Tenant will not use or
keep in or about the Premises any article or item which would in any way affect
the validity of the standard fire insurance policy of the State of Wisconsin.

 

(k)           Alterations.  Tenant shall not permit any alterations of or
upon any part of the Premises except with the written consent of Landlord,
which consent shall not unreasonably be withheld.  All alterations and additions to the Premises
made by Tenant shall remain for the benefit of Landlord, unless otherwise
provided in said consent.

 

(l)            Permit No Mechanic’s Liens.  Tenant shall promptly pay for any work done
in or about the Premises contracted by Tenant, and will not permit or suffer
any mechanic’s liens to attach to the Premises as a result thereof, and shall
promptly cause any claim for any such lien to be released, or to secure the
Landlord to its satisfaction in the event the Tenant desires to contest any
such claim.

 

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(m)          Landlord’s Access.  The Tenant shall allow the Landlord or its
agents or employees access to the exterior portions of the Premises at all
times, and the interior portions of the Premises at all reasonable times upon
prior notice, and in the event of an emergency for the purpose of examining the
Premises or to make any needful repairs or alterations of the Premises.  During the last six (6) months of the
term of this Lease or any renewal term, the Landlord may show the Premises to
prospective tenants, provided such showing does not unreasonably interfere with
the Tenant’s use of the Premises.

 

(n)           Termination on Bankruptcy.  If the Tenant shall be adjudged bankrupt, or
if a judgment is rendered against the Tenant in such an amount as to render
Tenant insolvent and incapable of meeting the obligations of Tenant hereunder,
and such judgment or order is not appealed from, or if the Tenant shall make an
assignment for the benefit of creditors, or a receiver shall be appointed for
Tenant by a court of competent jurisdiction and said order appointing receiver
is not appealed from by the Tenant, this Lease shall immediately terminate, and
the Landlord shall have the right to recover the Premises.  Provided, however, if in any of such events
Tenant is not in default under the terms of this Lease, the Landlord may not
terminate this Lease and may not recover the Premises.

 

(o)           Tenant’s Insurance.  The Tenant agrees to carry and pay the
premiums for commercial general liability insurance, insuring itself and the
Landlord against injury to property, person, or loss of life arising out of the
use and occupancy of the Premises, with limits of at least $1,000,000 per
occurrence and $2,000,000 in the aggregate; Tenant may meet its insurance
obligations hereunder through an umbrella policy with limits of at least
$8,000,000. Landlord shall be named as “Additional Named Insured” on both
policies. Tenant shall furnish to the Landlord as may be requested from time to
time, a certificate of said insurance (referencing 

 

10

 

both
policies). Such policies of insurance must be written with insurance carriers
rated by A.M Best Company as A IIIV or better, and admitted to write insurance
in the State of Wisconsin. Tenant shall not cancel, discontinue, or alter said
insurance without thirty (30) days written notice to the Landlord.

 

(p)           Hazardous Substances —
Reportable Uses.

 

(1)           Hazardous Substances.  Defined: 
“Hazardous Substances” means any material or substance: (i) defined
as a “hazardous substance” pursuant to the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C.  Section 9601 et seq.) and amendments
thereto and regulations promulgated thereunder, to the extent such amendments
and regulations are in effect on the date hereof, (ii) containing
gasoline, oil, diesel fuel or other petroleum products, (iii) defined as a
“hazardous waste” pursuant to the Federal Resource Conservation and Recovery
Act (42 U.S.C.  Section 6901 et
seq.) and amendments thereto and regulations promulgated thereunder, to the
extent such amendments and regulations are in effect on the date hereof, (iv) containing
polychlorinated byphenyls (PCB’s), (v) containing asbestos, (vi) radioactive,
(vii) biologically dangerous, or (viii) the presence of which
requires investigation, reporting or remediation under any federal, state or
local statute, regulation, ordinance or policy or which is defined as a “hazardous
waste” or “hazardous substance” under any federal, state or local statute, regulation
or ordinance in effect on the date hereof, and any toxic, explosive, corrosive
or otherwise hazardous substance, material or waste, which is regulated by any
federal, state or local governmental authority.

 

(2)           Reportable Uses Require Consent.
The term “Hazardous Substance” as used in this Lease shall mean in addition to
those items stated above in Paragraph 6(p)(1), any product, substance,
chemical, material or waste whose presence, nature, quantity 

 

11

 

and/or
intensity of existence, use, manufacture, disposal, transportation, spill,
release, or effect, either by itself or in combination with other materials
expected to be on the Premises is either (i) potentially injurious to the
public health, safety or welfare, the environment or the Premises, (ii) regulated
or monitored by any governmental authority, or (iii) a basis for liability
of Landlord to any governmental agency or third party under any applicable
statute or common law theory.  Hazardous
Substance shall include, but not be limited to, hydrocarbons, petroleum,
gasoline, crude oil or any products, by-products or fractions thereof.  Tenant shall not engage in any activity in,
on or about the Premises which constitutes a Reportable Use (as hereinafter
defined) of Hazardous Substances without the express written consent of
Landlord (consent not to be unreasonably withheld) and compliance in a timely
manner (at Tenant’s sole cost and expense) with all applicable law.

 

(3)           Indemnification.  Tenant shall indemnify, protect, defend and
hold Landlord, its agents, employees, lenders and ground lessor, if any, and
the Premises, harmless from and against any and all loss of rents and/or
damages, liabilities, judgments, costs, claims, liens, expenses, penalties,
permits and attorneys and consultants fees arising out of or involving any
Hazardous Substance or storage container brought onto the Premises by or for
Tenant or under Tenant’s control.  Tenant’s
obligation shall include, but not be limited to, the effects of any
contamination or injury to person, property or the environment created by
Tenant, and the cost of investigation (including consultant’s and attorney’s
fees and testing), removal, remediation, restoration and/or abatement thereof,
or of any contamination therein involved, and shall survive the expiration of
earlier termination of this Lease.  No
termination, cancellation or release agreement entered into by Landlord and
Tenant shall release Tenant from its obligations 

 

12

 

under
this Lease with respect to Hazardous Substances or storage tanks, unless
specifically so agreed by Landlord in writing at the time of such agreement.

 

7.             GENERAL
PROVISIONS.

 

(a)           If the building of which the Premises
are a part shall be totally destroyed or materially damaged by fire, the
elements, or other cause, Tenant shall have the option to terminate this Lease
by giving to Landlord written notice of termination within thirty (30) days
after such destruction.  If Tenant does
not elect to terminate this Lease, the Landlord shall rebuild, reconstruct, or
repair the Premises as closely as reasonably possible to their original
condition.  Said rebuilding,
reconstruction, or repairing shall commence immediately after proper adjustment
is made by the Landlord’s insurers, and in any event, within ninety (90) days
after the destruction, and shall be completed as expeditiously as possible.

 

(b)           If the building of which the Premises
are a part is partially destroyed or damaged by fire, elements, or other cause
(partially destroyed for purposes of this Lease being defined as twenty-five
percent (25%) of the building’s appraised value or less), the Landlord shall
repair and rebuild the Premises as reasonably close to their original condition
as possible.  Such repairing and
rebuilding shall commence immediately after proper adjustment is made upon the
Landlord’s insurance contracts, or in any event, within thirty (30) days after
the destruction, and shall be completed as expeditiously as possible.

 

(c)           If during the term of this Lease or
any renewal term the Premises shall be so damaged by fire, the elements, or
other cause not attributable to the Tenant, so as to make the Premises
completely or materially untenantable by the Tenant, then and in that event the
rent shall completely abate until the Premises have been so restored, so that
the Tenant may again occupy the same for the carrying on of its business.  If a part of the Premises are rendered 

 

13

 

untenantable,
the rent shall be prorated on a per diem basis and apportioned in accordance
with the part of the Premises which is usable by the Tenant until the damaged
part is again ready for Tenant’s occupancy.

 

(d)           In all cases, allowance shall be made
for reasonable delay caused by adjustment of insurance loss, strikes, labor
difficulties or any cause beyond Landlord’s reasonable control.

 

8.             LANDLORD’S
REMEDIES.  All rights and
remedies of the Landlord herein enumerated shall be cumulative and none shall
exclude any other right or remedy allowed by law, to wit:

 

(a)           If the Tenant defaults in any payment
of rent, and such default continues for fifteen (15) days after Landlord’s
written notice thereof to Tenant, or if Tenant defaults in the prompt and full
performance of any other provision of this Lease and such default continues for
thirty (30) days after Landlord’s written notice thereof to Tenant, the
Landlord, at its option, may terminate this Lease and Tenant’s right to
possession of the Premises.  Landlord
shall not be required to provide more than two (2) written notices of
default during each “lease year” of this Lease. 
After the cure of the second notice of default hereunder, Tenant shall
be deemed to know when Tenant is in default and no additional notice is
required for the remainder of such lease year. 
Lease year shall be defined as each period of time falling between May 1st
and April 30th during the term of this Lease.

 

(b)           Upon any termination of this Lease,
whether by lapse of time or otherwise. 
or upon any termination of Tenant’s right to possession without
termination of the Lease, Tenant shall surrender possession and vacate the
Premises immediately and deliver possession thereof to Landlord, and the Tenant
hereby grants to the Landlord free and full license to enter into and 

 

14

 

upon
the Premises in any such event, with or without process of law, and to
repossess the Premises, and to expel or remove Tenant or any others who may be
occupying or within the Premises, and to remove any and all property therefrom,
using such force as may be necessary without being deemed guilty of
trespassing, eviction, or forcible entry or detainer, and without releasing
Landlord’s rights to rent or any other right given to the Landlord by this
Lease or by operation of law.

 

(c)           If the Tenant abandons the Premises
or otherwise entitles Landlord so to elect to terminate, and Landlord elects to
terminate Tenant’s right to possession only, without terminating the Lease,
Landlord may at Landlord’s option, enter into the Premises, remove Tenant’s
property and other evidences of tenancy, and take and hold possession thereof
without such entry and possession terminating the Lease or releasing Tenant, in
whole or in part, from Tenant’s obligation to pay the rent hereunder for the
full term.  Upon and after entry into
possession without termination of this Lease, Landlord shall use its best
effort to relet the Premises or any part thereof for the account of Tenant to
any person, firm, or corporation other than Tenant for such rent, for such time
and upon such terms as Landlord in Landlord’s sole discretion shall
determine.  Landlord shall not be
required to accept any tenant offered by Tenant or to observe any instructions
given by Tenant about such reletting.  In
any such case, Landlord may make repairs in or to the Premises and redecorate
the same to the extent deemed by Landlord necessary or desirable, and Tenant
shall, upon demand, pay the cost thereof, together with Landlord’s expenses of
the reletting.  If the consideration
collected by Landlord upon any such reletting for Tenant’s account is not
sufficient to pay monthly the full amount of the rent reserved in this Lease,
together with the costs of repairs, redecorating, and Landlord’s expenses,
Tenant shall pay to Landlord the amount of each monthly deficiency upon demand;
and if the 

 

15

 

consideration
so collected from any such resetting is more than sufficient to pay the full
amount of the rent reserved herein, together with the costs and expenses of
Landlord, Landlord, at the end of the stated term of the Lease, shall account
for the surplus to Tenant.

 

9.             ASSIGNMENT
OR SUBLETTING.  The Tenant
may not assign this Lease, or sublet all or any portion of the Premises without
the written consent of the Landlord, which consent shall not be unreasonably
withheld.  Notwithstanding the foregoing,
Tenant may assign this Lease, or sublet all or any portion of the Premises, to
any entity that controls, is controlled by or is under common control with
Tenant, without the consent of Landlord

 

10.           WAIVER OF SUBROGATION.  Anything in this Lease to the contrary
notwithstanding, Landlord and Tenant each hereby waives any and all rights of
recovery, claim, action or cause-of-action against the other, its agents,
officers, directors, partners, shareholders or employees, for any loss or
damage that may occur to the Premises, or any improvements thereto, or any
property of such party therein, by reason of fire, the elements or any other
cause which could be insured against under the terms of a standard fire and
extended coverage insurance policies, regardless of cause or origin, including
negligence of the other party hereto, its agents, officers or employees, and
covenants that no insurer shall hold any right of subrogation against such
other party.

 

11.           SAVE HARMLESS CLAUSE -
TENANT.

 

The
Tenant agrees that it will at all times protect indemnify, save, and keep
harmless the Landlord against and from any and all claims arising out of or
from any accidents or other occurrences on or about the Premises causing injury
to any person or persons or property (including but not limited to any injuries
indirectly or directly caused by lack of security), whomsoever or whatsoever
and due directly or indirectly to negligent use of the Premises or any 

 

16

 

part
thereof by said Tenant, its employees, agents, or invitees.   The Landlord agrees that it will at all
times protect indemnify, save, and keep harmless the Tenant against and from
any and all claims arising out of or from any accidents or other occurrences on
or about the Premises causing injury to any person or persons or property, whomsoever
or whatsoever and due directly or indirectly to negligent use of the Premises
or any part thereof by said Landlord, its employees, agents, or invitees.

 

12.           LANDLORD’S RIGHT TO
MORTGAGE.  The Tenant’s
rights under this Lease are and shall always be subordinate to the lien of any
mortgage or mortgages now or hereafter placed upon the land and building of
which the Premises are a part, and to all advances hereafter made from time to
time upon the security thereof, provided, however, that as long as the Tenant
is not in default under the terms of this Lease beyond any applicable cure
period, it may continue in possession of the Premises under the terms of this
Lease.  Tenant shall cooperate with the
Landlord in furnishing.  any information
Landlord’s mortgagee shall reasonably request.

 

13.           PARTIES BOUND.  Each provision hereof shall extend to and
shall, as the case might requite, bind and Inure to the benefit of the Landlord
and Tenant and their respective heirs, legal representatives, successors, and
assigns, provided that this Lease shall not inure to the benefit of any
assignee, transferee, or successor of the Tenant except upon the written
consent of the Landlord (except as otherwise provided in Section 9 above).

 

14.           LANDLORD’S LIABILITY FOR
DAMAGES.  The Landlord
shall not be liable for any damage to any property at any time stored or kept
in said Premises or building from water, rain, snow or flooding which may leak,
issue, or flow from or into any part of said building, which is Landlord’s
responsibility to repair, unless previous written notice shall have 

 

17

 

been
given by Tenant to Landlord of the necessity of the repairs, and Landlord has
unreasonably delayed making repairs.

 

15.           NOTICES.  Any notice required or permitted under this
Lease shall be deemed sufficiently given or served if sent by registered mail
to Tenant at the Premises and to Landlord at the address then fixed for the
payment of rent, and either party may by like notice at any time and from time
to time, designate a different address to which notices shall be sent.  Notices given in accordance with these
provisions shall be deemed received when mated. 
A copy of any notice to Tenant shall be delivered to the following
address: Broadwind Energy, Inc., 47 E. Chicago Avenue, Suite 332,
Naperville, IL 60540, Attn: General Counsel.

 

16.           MISCELLANEOUS.  No waiver of any default by Tenant hereunder
shall be implied from any omission by Landlord to take any action on account of
such default if such default persists or is repeated and no express waiver
shall affect any default other than the default specified in the express
waiver, and then only for the time and to the extent therein stated.  One or more waivers of any covenant, term, or
condition of this Lease by Landlord shall not be construed as a waiver of a
subsequent breach of the same covenant, term, or condition.  The invalidity or unenforceability of any
provision hereof shall not affect or impair any other provisions.  The laws of the State of Wisconsin shall
govern the validity, performance, and enforcement of this Lease.  The headings of the several paragraphs
contained herein are for convenience only and do not define, limit, or construe
the contents of such articles.  The
necessary grammatical changes required to make the provisions apply to
individuals, singular or plural, males or females, corporations or
partnerships, shall be in each case assumed as though in each case expressed.

 

18

 

17.           DEFAULT OF EITHER PARTY.  If either party hereto should be in default
under any provisions of this Lease (except in the payment of rent as aforesaid)
the other party, prior to exercising any option arising upon such default,
shall provide the defaulting party with written notice of such default and the
defaulting party shall have thirty (30) days in which to remedy such default,
unless a shorter time be provided elsewhere in this Lease, in which case the
shorter time shall apply; provided, however, that if any such default cannot be
remedied by the defaulting party with reasonable diligence within said thirty
(30) days, the defaulting party may have such additional time as may, under the
circumstances, be reasonably necessary to remedy such default, provided,
further, that this option shall not apply to the payment of any rent reserved
hereunto the Landlord.

 

18.           SEVERABILITY.  If any portion of this agreement shall be
found to be illegal, invalid, or have the enforcement of its terms otherwise
restricted by a court of competent jurisdiction, the remainder of this
agreement shall nevertheless remain in full force and effect

 

19.           AUTHORITY.  All persons executing this document warrant
and represent that they have the appropriate corporate or organizational
authority required to bind the parties to this Lease.

 

The remainder of this page is intentionally blank.

 

19

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  CITY
  CENTRE, L.L.C.

  	
   

  	
  TOWER
  TECH SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/ Christopher C. Allie

  	
   

  	
  By:
  

  	
  /s/
  Jesse E. Collins, Jr.

  
	
   

  	
  Name:
  Christopher C. Allie

  	
   

  	
   

  	
  Name:
  Jesse E. Collins Jr.

  
	
   

  	
  Its:
  Agent

  	
   

  	
   

  	
  Its:
  Group President

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Peter C. Allie

  	
   

  	
   

  	
   

  
	
   

  	
  Name:
  Peter C. Allie

  	
   

  	
   

  	
   

  
	
   

  	
  Its:
  Agent

  	
   

  	
   

  	
   

  
						

 

20

 

EXHIBIT A

 

SITE PLAN OF THE PREMISES

 

(see attached)

 

21Exhibit
10.6

 

INDEMNIFICATION AGREEMENT dated as of
                                    
between

Broadwind Energy, Inc. (the “Company”) and                                          (“Indemnitee”)

 

WHEREAS,
the Board of Directors has determined that the Company’s ability to attract and
retain qualified persons as directors and officers is necessary to further the
best interests of the Company’s stockholders and that in order to attract such
individuals, the Company should act to assure such persons that there shall be
adequate certainty of protection through insurance and indemnification against
risks of claims and actions against them arising out of their service to and
activities on behalf of the Company; and

 

WHEREAS,
the Company has adopted provisions in its Certificate of Incorporation and
By-laws providing for indemnification and advancement of expenses of its
directors and officers to the fullest extent permitted by the Delaware General
Corporation Law, and the Company wishes to clarify and enhance the rights and
obligations of the Company and Indemnitee with respect to indemnification and
advancement of expenses; and

 

WHEREAS,
in order to induce and encourage highly experienced and capable persons such as
Indemnitee to serve and continue to serve as directors and officers of the
Company and in any other capacity with respect to the Company, and to otherwise
promote the desirable end that such persons shall resist what they consider
unjustified lawsuits and claims made against them in connection with the good
faith performance of their duties to the Company, with the knowledge that
certain costs, judgments, penalties, excise taxes, fines, liabilities and
expenses incurred by them in their defense of such litigation are to be borne
by the Company and they shall receive the maximum protection against such risks
and liabilities as may be afforded by law, the Board of Directors of the
Company has determined that the following Agreement is reasonable and prudent
to promote and ensure the best interests of the Company and its stockholders;
and

 

WHEREAS,
the Company desires to have Indemnitee continue to serve as a director or
officer of the Company and in such other capacity with respect to the Company
as the Company may request, as the case may be, free from undue concern for
unpredictable, inappropriate or unreasonable legal risks and personal
liabilities by reason of Indemnitee acting in good faith in the performance of
Indemnitee’s duty to the Company; and Indemnitee desires to continue so to
serve the Company, provided, and on the express condition, that he or she is
furnished with the indemnity set forth hereinafter;

 

Now,
therefore, in consideration of Indemnitee’s continued service as a director or
officer of the Company, the sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

 

1.
Service by Indemnitee; Effectiveness. Indemnitee shall serve and/or
continue to serve as a director or officer of the Company faithfully and to the
best of Indemnitee’s ability so long as Indemnitee is duly elected or appointed
and until such time as Indemnitee is removed as permitted by law or tenders a
resignation in writing. This Agreement shall be effective as of the date first
set forth above, and this Agreement shall apply to any event that occurred
prior to or after such date if Indemnitee was, or is deemed to have been, a
director, officer, employee, agent or fiduciary of the Company, or was serving
at the request of the Company as a director, officer, employee, agent or
fiduciary of any other entity (including, but not limited to, another

 

 

corporation,
partnership, joint venture or trust) at the time such event occurred.

 

2.
Indemnification and Advancement of Expenses. The Company shall indemnify
Indemnitee, and shall pay to Indemnitee in advance of the final disposition of
any Proceeding all Expenses incurred by Indemnitee, to the fullest extent
permitted by the Delaware General Corporation Law in effect on the date of this
Agreement or as such law may from time to time be amended (but, in the case of
any such amendment, only to the extent that such amendment permits the Company
to provide broader rights than said law permitted the Company to provide prior
to such amendment). Without diminishing the scope of the rights provided by
this Section, the rights of Indemnitee to indemnification and advancement of
Expenses provided hereunder shall include but shall not be limited to those
rights hereinafter set forth, except that no indemnification or, only in the
case of clauses (a) through (c) below, advancement of Expenses shall
be paid to Indemnitee:

 

(a) to
the extent expressly prohibited by Delaware law or the Certificate of
Incorporation and By-laws of the Company;

 

(b) for
which payment is actually made to Indemnitee under a valid and collectible insurance
policy or under a valid and enforceable indemnity clause, provision of the
certificate of incorporation or by-laws, or agreement of the Company or any
other company or organization where Indemnitee is serving at the request of the
Company, except in respect of any indemnity exceeding the payment under such
insurance, indemnity clause, provision of the certificate of incorporation or
by-laws, or agreement; or

 

(c) in
connection with an action, suit or proceeding, or part thereof (including
claims and counterclaims) initiated by Indemnitee, except a judicial proceeding
or arbitration pursuant to Section 10 to enforce rights under this
Agreement, unless the action, suit or proceeding (or part thereof) was
authorized by the Board of Directors of the Company; or

 

(d) with
respect to any Proceeding brought by or on behalf of the Company against
Indemnitee that is authorized by the Board of Directors of the Company, except
as provided in Sections 4, 5 and 6 below.

 

3.
Action or Proceedings Other than an Action by or in the Right of the Company.
Except as limited by Section 2 above, Indemnitee shall be entitled to the
indemnification rights provided in this Section if Indemnitee is a party
or is threatened to be made a party to any Proceeding (other than an action by
or in the name of the Company) by reason of the fact that Indemnitee is or was,
or is deemed to be or have been, a director, officer, employee, agent or
fiduciary of the Company, or is or was serving at the request of the Company as
a director, officer, employee, agent or fiduciary of any other entity
(including, but not limited to, another corporation, partnership, joint venture
or trust); or by reason of anything done or not done by Indemnitee in any such
capacity. Pursuant to this Section, Indemnitee shall be indemnified on an
after-tax basis against all costs, judgments, penalties, excise taxes, fines,
liabilities, amounts paid in settlement and Expenses, actually and reasonably
incurred by Indemnitee in connection with such Proceeding, if Indemnitee acted
in good faith and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company, and with respect to any criminal
Proceeding, had no reasonable cause to believe his or her conduct was unlawful.

 

4.
Indemnity in Proceedings by or in the Name of the Company. Except as
limited by Section 2 above, Indemnitee shall be entitled to the
indemnification rights provided in this

 

 

Section if
Indemnitee was or is a party or is threatened to be made a party to any
Proceeding brought by or in the name of the Company to procure a judgment in
its favor by reason of the fact that Indemnitee is or was, or is deemed to be
or have been, a director, officer, employee, agent or fiduciary of the Company,
or is or was serving at the request of the Company as a director, officer,
employee, agent or fiduciary of any other entity (including, but not limited
to, another corporation, partnership, joint venture or trust); or by reason of
anything done or not done by Indemnitee in any such capacity. Pursuant to this
Section, Indemnitee shall be indemnified on an after-tax basis against all
costs, judgments, penalties, excise taxes, fines, liabilities, amounts paid in
settlement and Expenses, actually and reasonably incurred by Indemnitee in
connection with such Proceeding if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company; provided, however, that no such indemnification shall
be made in respect of any claim, issue, or matter as to which Delaware law
expressly prohibits such indemnification by reason of any adjudication of
liability of Indemnitee to the Company, unless and only to the extent that the
Court of Chancery of the State of Delaware or the court in which such
Proceeding was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
Indemnitee is entitled to indemnification for such costs, judgments, penalties,
excise taxes, fines, liabilities, amounts paid in settlement and Expenses as
such court shall deem proper.

 

5.
Indemnification for Costs, Charges and Expenses of Successful Party.
Notwithstanding the limitations of Section 2(d), 3 and 4 above, to the
extent that Indemnitee has been successful, on the merits or otherwise, in
whole or in part, in defense of any Proceeding or in defense of any claim,
issue or matter therein, including, without limitation, the dismissal of any
action without prejudice, or if it is ultimately determined, after all appeals
by a court of competent jurisdiction, that Indemnitee is otherwise entitled to
be indemnified against Expenses, Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred in connection therewith.

 

6.
Partial Indemnification. If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of
the costs, judgments, penalties, excise taxes, fines, liabilities, amounts paid
in settlement or Expenses, actually and reasonably incurred in connection with
any Proceeding, or in connection with any judicial proceeding or arbitration
pursuant to Section 10 to enforce rights under this Agreement, but not,
however, for all of the total amount thereof, the Company shall nevertheless
indemnify Indemnitee for the portion of such costs, judgments, penalties,
excise taxes, fines, liabilities, amounts paid in settlement and Expenses,
actually and reasonably incurred to which Indemnitee is entitled.

 

7.
Indemnification for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the maximum extent permitted by the Delaware
General Corporation Law, Indemnitee shall be entitled to indemnification
against all Expenses actually and reasonably incurred or suffered by Indemnitee
or on Indemnitee’s behalf if Indemnitee appears as a witness or otherwise
incurs legal expenses as a result of or related to Indemnitee’s service as a
director or officer of the Company, in any threatened, pending or completed
action, suit or proceeding, whether of a civil, criminal, administrative,
investigative, legislative or other nature, to which Indemnitee neither is, nor
is threatened to be made, a party.

 

8.
Determination of Entitlement to Indemnification. To receive
indemnification under this Agreement, Indemnitee shall submit a written request
to the Secretary of the Company. Such request shall include documentation or
information which is necessary for such determination

 

 

and
which is reasonably available to Indemnitee. Upon written request by Indemnitee
for indemnification pursuant to Sections 3, 4, 5, 6 or 7 the entitlement
of Indemnitee to indemnification, to the extent not provided pursuant to the
terms of this Agreement, shall be determined by the following person or persons
who shall be empowered to make such determination: (a) the Board of
Directors of the Company by a majority vote of Disinterested Directors, whether
or not such majority constitutes a quorum; (b) a committee of
Disinterested Directors designated by a majority vote of such directors,
whether or not such majority constitutes a quorum; (c) if there are no
Disinterested Directors, or if the Disinterested Directors so direct, by
Independent Counsel in a written opinion to the Board of Directors, a copy of
which shall be delivered to Indemnitee; (d) the stockholders of the
Company; or (e) in the event that a Change in Control has occurred, by
Independent Counsel in a written opinion to the Board of Directors, a copy of
which shall be delivered to Indemnitee. Such Independent Counsel shall be
selected by the Board of Directors and reasonably approved by Indemnitee,
except that in the event that a Change in Control has occurred, Independent
Counsel shall be selected by Indemnitee and reasonably approved by the Board of
Directors. Upon failure of the Board so to select (or so to approve, in the
event that a Change in Control has occurred) such Independent Counsel or upon
failure of Indemnitee so to approve (or so to select, in the event that a Change
in Control has occurred), such Independent Counsel shall be selected upon
application to a court of competent jurisdiction. The determination of
entitlement to indemnification shall be made not later than 30 calendar days
after receipt by the Company of a written request for indemnification. Any
amounts incurred by Indemnitee in connection with a request for indemnification
or payment of Expenses hereunder, under any other agreement, any provision of
the Company’s Certificate of Incorporation and By-laws or any directors’ and
officers’ liability insurance, shall be borne by the Company. The Company
hereby indemnifies Indemnitee for any such amounts and agrees to hold
Indemnitee harmless therefrom irrespective of the outcome of the determination
of Indemnitee’s entitlement to indemnification. If the person making such
determination shall determine that Indemnitee is entitled to indemnification as
to part (but not all) of the application for indemnification, such person shall
reasonably prorate such partial indemnification among the claims, issues or
matters at issue at the time of the determination.

 

9.
Presumptions and Effect of Certain Proceedings. The Secretary of the
Company shall, promptly upon receipt of Indemnitee’s written request for
indemnification, advise in writing the Board of Directors or such other person
or persons empowered to make the determination as provided in Section 8
that Indemnitee has made such request for indemnification. Upon making such
request for indemnification, Indemnitee shall be presumed to be entitled to
indemnification hereunder and the Company shall have the burden of proof in
making any determination contrary to such presumption. If the person or persons
so empowered to make such determination shall have failed to make the requested
determination with respect to indemnification within 30 calendar days after
receipt by the Company of such request, a requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be absolutely entitled to such indemnification, absent actual and
material fraud in the request for indemnification. The termination of any
Proceeding described in Sections 3 or 4 by judgment, order, settlement or
conviction, or upon a plea of  nolo contendere  or its equivalent, shall not, of itself: (a) create
a presumption that Indemnitee did not act in good faith and in a manner which
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company, or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that Indemnitee’s conduct was unlawful; or (b) otherwise
adversely affect the rights of Indemnitee to

 

 

indemnification
except as may be provided herein.

 

10.
Remedies of Indemnitee in Cases of Determination not to Indemnify or to
Advance Expenses. In the event that a determination is made that Indemnitee
is not entitled to indemnification hereunder or if payment has not been timely
made following a determination of entitlement to indemnification pursuant to
Sections 8 and 9, or if Expenses are not paid pursuant to Section 15,
Indemnitee shall be entitled to final adjudication in a court of competent
jurisdiction of entitlement to such indemnification or payment. Alternatively,
Indemnitee at Indemnitee’s option may seek an award in an arbitration to be
conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association, such award to be made within 60 calendar days
following the filing of the demand for arbitration. The Company shall not
oppose Indemnitee’s right to seek any such adjudication or award in arbitration
or any other claim. The determination in any such judicial proceeding or
arbitration shall be made  de novo  and Indemnitee shall not be prejudiced by
reason of a determination (if so made) pursuant to Sections 8 or 9 that
Indemnitee is not entitled to indemnification. If a determination is made or
deemed to have been made pursuant to the terms of Section 8 or 9 that
Indemnitee is entitled to indemnification, the Company shall be bound by such
determination and is precluded from asserting that such determination has not
been made or that the procedure by which such determination was made is not
valid, binding and enforceable. The Company further agrees to stipulate in any
such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement and is precluded from making any assertions to the
contrary. If the court or arbitrator shall determine that Indemnitee is
entitled to any indemnification or payment of Expenses hereunder, the Company
shall pay all Expenses actually and reasonably incurred by Indemnitee in
connection with such adjudication or award in arbitration (including, but not
limited to, any appellate proceedings).

 

11.
Other Rights to Indemnification. Indemnification and payment of Expenses
provided by this Agreement shall not be deemed exclusive of any other rights to
which Indemnitee may now or in the future be entitled under any provision of
the Certificate of Incorporation or By-laws of the Company, vote of
stockholders or Disinterested Directors, provision of law, agreement or
otherwise.

 

12.
Expenses to Enforce Agreement. In the event that Indemnitee is subject
to or intervenes in any action, suit or proceeding in which the validity or
enforceability of this Agreement is at issue or seeks an adjudication or award
in arbitration to enforce Indemnitee’s rights under, or to recover damages for
breach of, this Agreement, Indemnitee, if Indemnitee prevails in whole or in
part in such action, suit or proceeding, shall be entitled to recover from the
Company and shall be indemnified by the Company against any Expenses actually
and reasonably incurred by Indemnitee.

 

13.
Continuation of Indemnity. All agreements and obligations of the Company
contained herein shall continue during the period Indemnitee is a director,
officer, employee, agent or fiduciary of the Company or is serving at the
request of the Company as a director, officer, employee, agent or fiduciary of
any other entity (including, but not limited to, another corporation,
partnership, joint venture or trust) and shall continue thereafter with respect
to any possible claims based on the fact that Indemnitee was a director,
officer, employee, agent or fiduciary of the Company or was serving at the
request of the Company as a director, officer, employee, agent or fiduciary of
any other entity (including, but not limited to, another corporation,
partnership, joint venture or trust). This Agreement shall be binding upon all

 

 

successors
and assigns of the Company (including any transferee of all or substantially
all of its assets and any successor by merger or operation of law) and shall
inure to the benefit of the heirs, personal representatives and estate of
Indemnitee.

 

14.
Notification and Defense of Claim. Promptly after receipt by Indemnitee
of notice of any Proceeding, Indemnitee shall, if a claim in respect thereof is
to be made against the Company under this Agreement, notify the Company in
writing of the commencement thereof; but the omission so to notify the Company
shall not relieve it from any liability that it may have to Indemnitee.
Notwithstanding any other provision of this Agreement, with respect to any such
Proceeding of which Indemnitee notifies the Company:

 

(a) The
Company shall be entitled to participate therein at its own expense; and

 

(b) Except
as otherwise provided in this Section 14(b), to the extent that it may
wish, the Company, jointly with any other indemnifying party similarly
notified, shall be entitled to assume the defense thereof, with counsel
satisfactory to Indemnitee. After notice from the Company to Indemnitee of its
election so to assume the defense thereof, the Company shall not be liable to
Indemnitee under this Agreement for any expenses of counsel subsequently
incurred by Indemnitee in connection with the defense thereof except as
otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s
own counsel in such Proceeding, but the fees and expenses of such counsel
incurred after notice from the Company of its assumption of the defense thereof
shall be at the expense of Indemnitee unless (i) the employment of counsel
by Indemnitee has been authorized by the Company, (ii) Indemnitee
reasonably concludes, based upon an opinion of counsel approved by the Company,
which approval shall not be unreasonably withheld, that there may be a conflict
of interest between the Company and Indemnitee in the conduct of the defense of
such Proceeding, or (iii) the Company shall not within 60 calendar days of
receipt of notice from Indemnitee in fact have employed counsel to assume the
defense of the Proceeding, in each of which cases the fees and expenses of
Indemnitee’s counsel shall be at the expense of the Company. The Company shall
not be entitled to assume the defense of any Proceeding brought by or on behalf
of the Company or as to which Indemnitee shall have made the conclusion
provided for in (ii) above; and

 

(c) If
the Company has assumed the defense of a Proceeding, the Company shall not be
liable to indemnify Indemnitee under this Agreement for any amounts paid in
settlement of any Proceeding effected without the Company’s written consent.
The Company shall not settle any Proceeding in any manner that would impose any
ongoing obligation with respect to Indemnitee without Indemnitee’s written
consent; it being understood that the Company may settle any claim for monetary
relief at its own discretion; provided that the Company may not utilize
insurance proceeds to fund any such settlement unless the settlement contains a
release in favor of the Indemnitee from any further liability in connection
with the matters giving rise to such Proceeding. Neither the Company nor
Indemnitee shall unreasonably withhold its consent to any proposed settlement.

 

15.
Advancement of Expenses. All Expenses incurred by Indemnitee in advance
of the final disposition, including any appeal thereof, of any Proceeding shall
be paid by the Company at the request of Indemnitee, without requiring a
preliminary determination of Indemnitee’s ultimate entitlement to
indemnification hereunder. To receive payment of Expenses under this Agreement,
Indemnitee shall submit a written request to the Secretary of the Company. Such
request shall reasonably evidence the Expenses incurred by Indemnitee and shall
include or be

 

 

accompanied
by a written affirmation by Indemnitee of Indemnitee’s good faith belief that
the standard of conduct necessary for indemnification by the Company as
authorized by law and by this Agreement has been met and an undertaking, by or
on behalf of Indemnitee, to reimburse such amounts if it is ultimately
determined, after all appeals by a court of competent jurisdiction, that
Indemnitee is not entitled to be indemnified against such Expenses by the
Company as provided by this Agreement or otherwise, each in the form as set
forth in Annex I hereto. Indemnitee’s undertaking to reimburse any such amounts
is not required to be secured and shall not accrue interest.  Notwithstanding the foregoing, advances shall
be made without regard to Indemnitee’s ability to repay.  Each such payment of Expenses shall be made
within 20 calendar days after the receipt by the Company of such written
request. Indemnitee’s entitlement to such Expenses shall include those incurred
in connection with any action, suit or proceeding by Indemnitee seeking a
judgment in court or an adjudication or award in arbitration pursuant to Section 10
of this Agreement (including the enforcement of this provision) to the extent
the court or arbitrator shall determine that Indemnitee is entitled to payment
of Expenses hereunder.  In the event that
the Company shall breach its obligation to advance Expenses under this Section 15,
the parties hereto agree that Indemnitee’s remedies available at law would not
be adequate and that Indemnitee would be entitled to specific performance.  The Company acknowledges that, in the absence
of a waiver, a bond or undertaking may be required of Indemnitee by the applicable
court, and the Company hereby waives any such requirement of a bond or
undertaking except to the extent of the undertaking set forth above.

 

16.
Contribution.  If the
indemnification provided in this Agreement is unavailable in whole or in part
and may not be paid to Indemnitee for any reason other than those explicitly
set forth herein, then in respect to any Proceeding in which the Company is
jointly liable with Indemnitee (or would be if joined in such Proceeding), to
the fullest extent permissible under applicable law, the Company, in lieu of
indemnifying and holding harmless Indemnitee, shall pay, in the first instance,
all costs, judgments, penalties, excise taxes, fines, liabilities, amounts paid
in settlement and Expenses, actually and reasonably incurred by Indemnitee in
connection with such Proceeding without requiring Indemnitee to contribute to
such payment, and the Company hereby waives and relinquishes any right of
contribution it may have at any time against Indemnitee.

 

17.
Separability; Prior Indemnification Agreements. If any provision or
provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including without
limitation, all portions of any paragraphs of this Agreement containing any
such provision held to be invalid, illegal or unenforceable, that are not by
themselves invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby, and (b) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, all portions of
any paragraph of this Agreement containing any such provision held to be
invalid, illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent of the
parties that the Company provide protection to Indemnitee to the fullest
enforceable extent. This Agreement shall supersede and replace any prior
indemnification agreements entered into by and between the Company and
Indemnitee and any such prior agreements shall be terminated upon execution of
this Agreement.

 

18.
Insurance.  (a) The Company
will use its reasonable best efforts to acquire directors and officers
liability insurance, on terms and conditions deemed appropriate by the Board of

 

 

Directors
of the Company covering Indemnitee or any claim made against Indemnitee for
service as a director or officer of the Company and covering the Company for
any indemnification or advancement of Expenses made by the Company to
Indemnitee for any claims made against Indemnitee for service as a director or
officer of the Company.  Without in any
way limiting any other obligation under this Agreement, the Company shall
indemnify Indemnitee for any payment by Indemnitee arising out of the amount of
any deductible or retention and the amount of any excess of the aggregate of
all judgments, penalties, excise taxes, fines, settlements and Expenses
incurred by Indemnitee in connection with a Proceeding over the coverage of any
insurance referred to in the previous sentence.

 

(b) 
In the event of a Change in Control or the Company’s becoming insolvent,
including being placed into receivership or entering the federal bankruptcy
process, the Company shall maintain in force any directors’ and officers’
liability insurance policies then maintained by the Company in providing
insurance in respect of Indemnitee, for a period of six years thereafter (a “Tail
Policy”). The Company shall use commercially reasonable efforts to place such
coverage with the incumbent insurance carriers using the policies that were in
place at the time of the change of control event (unless the incumbent carriers
will not offer such policies, in which case the Company shall use commercially
reasonable efforts to obtain a Tail Policy comparable in scope and amount as
the expiring policies, with insurance carriers for the Tail Policy having an AM
Best rating that is the same or better than the AM Best ratings of the expiring
policies).

 

19.
Notification of Investigation. 
For so long as Indemnitee is serving as a director or agent of the
Company or employed by the Company, if the Indemnitee is the subject of or is
implicated in any investigation, whether formal or informal, at the request of,
or in which the Company is coordinating with, any third party (other than any
agent, counsel or other advisor or representative of the Company), the Company
shall provide Indemnitee with reasonably prompt notice that such investigation
is being conducted, it being understood that the Company shall not  be required to share any information gathered
in connection with such investigation and, provided, that by executing this
Agreement, Indemnitee agrees maintain the confidentiality of such notification.

 

20.
Headings; References; Pronouns. The headings of the sections of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.
References herein to section numbers are to sections of this Agreement. All
pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine, neuter, singular or plural as appropriate.

 

21.
Definitions. For purposes of this Agreement:

 

(a) “Change
in Control” means the occurrence of any of the following:

 

(i) a
sale, lease or other disposition of all or substantially all of the assets of
the Company and its subsidiaries, taken as a whole,

 

(ii) any
consolidation or merger of the Company with or into any other corporation or
other person, or any other corporate reorganization or transaction (including the acquisition of
capital stock of the Company), whether or not the Company is a party thereto,
after giving effect to which in excess of fifty percent (50%) of the Company’s
voting power is owned directly, or 

 

 

indirectly
though one or more entities, by any person and its “affiliates” or “associates”
(as such terms are defined in the rules adopted by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended),

 

(iii) any
stock sale or other transaction or series of related
transactions, whether or not the Company is a party thereto, after giving
effect to which in excess of fifty percent (50%) of the Company’s voting power
is owned directly, or indirectly though one or more entities, by any person and
its “affiliates” or “associates” (as such terms are defined in the rules adopted
by the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended).

 

(b) “Disinterested
Director” means a director of the Company who is not or was not a party to the
Proceeding in respect of which indemnification is being sought by Indemnitee.

 

(c) “Expenses”
means all reasonable expenses incurred in connection with the defense or settlement
of, or acting as a witness in, any investigation, action, suit or other
proceeding, including any judicial, administrative, investigative, legislative
or other proceedings, and appeals, attorneys’ fees, witness fees and expenses,
fees and expenses of accountants and other advisors, retainers and
disbursements and advances thereon, the premium, security for, and other costs
relating to any bond (including cost bonds, appraisal bonds or their
equivalents), and any expenses of establishing a right to indemnification,
advancement or contribution under Sections 8, 10, 12, 15 and 16 above but
shall not include the amount of judgments, penalties, excise taxes, fines or
amounts paid in settlement.

 

(d) “Independent
Counsel” means a law firm or a member of a law firm experienced in matters of
corporate law that neither is presently nor in the past five years has been
retained to represent: (i) the Company or Indemnitee in any matter
material to either such party, or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s right to indemnification under this
Agreement.

 

(e) “Proceeding”
includes any threatened, pending or completed investigation, action, suit or
other proceeding, whether formal or informal and whether brought in the name of
the Company or otherwise, against Indemnitee, whether of a civil, criminal,
administrative, investigative, legislative or other nature, including, but not
limited to, actions, suits or proceedings in which Indemnitee may be or may
have been involved as a party or otherwise, by reason of the fact that
Indemnitee is or was a director, officer, employee, agent or fiduciary of the
Company, or is or was serving, at the request of the Company, as a director,
officer, employee, agent or fiduciary of any other entity, including, but not
limited to, another corporation, partnership, joint venture or trust, or by
reason of anything done or not done by Indemnitee in any such capacity, whether
or not Indemnitee is serving in such capacity at the time any liability or
expense is incurred for which indemnification or reimbursement can be provided
under this Agreement.

 

22.
Other Provisions.

 

(a) This
Agreement shall be interpreted and enforced in accordance with the laws of Delaware.

 

(b) This
Agreement may be executed in one or more counterparts, each of which shall for
all purposes be deemed to be an original but all of which together shall
constitute one and the same 

 

 

Agreement.
Only one such counterpart signed by the party against whom enforceability is
sought needs to be produced as evidence of the existence of this Agreement.

 

(c) This
Agreement shall not be deemed an employment contract between the Company and
any Indemnitee who is an officer of the Company, and, if Indemnitee is an
officer of the Company, Indemnitee specifically acknowledges that Indemnitee
may be discharged at any time for any reason, with or without cause, and with
or without severance compensation, except as may be otherwise provided in a
separate written contract between Indemnitee and the Company.

 

(d) Upon
a payment to Indemnitee under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of Indemnitee to recover
against any person for such liability, and Indemnitee shall execute all
documents and instruments required and shall take such other actions as may be
necessary to secure such rights, including the execution of such documents as
may be necessary for the Company to bring suit to enforce such rights.

 

(e) No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both parties hereto. No waiver of any of the provisions
of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver.

 

 

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

 

 

	
   

  	
  BROADWIND
  ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Indemnitee]

  

 

 

ANNEX I

 

FORM OF AFFIRMATION AND UNDERTAKING

 

The
undersigned is the Indemnitee as defined in that certain Indemnification
Agreement dated
                                  
between the undersigned and Broadwind Energy, Inc. (the “Indemnification
Agreement”). Capitalized terms not otherwise defined herein shall have the
meanings give in such agreement.

 

As
a condition to receiving advancement of Expenses, Indemnitee hereby (a) affirms
that it is Indemnitee’s good faith belief that the standard of conduct
necessary for indemnification by the Company as authorized by law and by the
Indemnification Agreement has been met and (b) undertakes to reimburse
within 60 days of the Company’s demand any such amounts advanced under the
Indemnification Agreement if it is ultimately determined, after all appeals by
a court of competent jurisdiction, that Indemnitee is not entitled to be
indemnified against such Expenses by the Company as provided by the
Indemnification Agreement or otherwise.

 

This
Agreement shall not affect in any manner rights which Indemnitee may have
against the Company, any insurer or any other person to seek indemnification
for or reimbursement of any expenses referred to herein or any judgment which
may be rendered in any litigation or proceeding.

 

	
   

  	
   

  
	
   

  	
  [Indemnitee]

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