Document:

EXHIBIT 4.3

VOTING AGREEMENT

 

THIS VOTING AGREEMENT (the “Agreement”) is
effective as of January 22, 2007, among Consonus Technologies, Inc., a Delaware
corporation (the “Company”), Knox Lawrence International, LLC, a
Delaware limited liability company (“KLI”) and those Persons listed on Exhibit
A attached hereto (each a “Significant Stockholder”; KLI and each
Significant Stockholder, a “Stockholder”).

WHEREAS,
the Company, Consonus Acquisition Corp., a Delaware corporation (“Consonus”),
Strategic Technologies, Inc., a North Carolina corporation (“STI”), CAC
Merger Sub, Inc., a Delaware corporation and a wholly and directly owned
subsidiary of Company (“CAC Merger Sub”), STI Merger Sub, Inc., a North
Carolina corporation and a wholly and directly owned subsidiary of Company (“STI
Merger Sub”) have entered into a merger agreement (the “Merger Agreement”)  dated  October 18,
2006 pursuant to which (i) CAC Merger Sub will be merged with and into
Consonus, the separate corporate existence of CAC Merger Sub will thereupon
cease and Consonus will continue as the surviving corporation and a wholly
owned subsidiary of the Company and (ii) STI Merger Sub will be merged with and
into STI, the separate corporate existence of STI Merger Sub will thereupon
cease and STI will continue as the surviving corporation and a wholly owned
subsidiary of the Company (together, the “Mergers”).

WHEREAS,
KLI owned approximately 92.1% of the outstanding capital stock of Consonus and
as a result of the Mergers received 2,818,247 Shares of the Common Stock of the
Company, which represents approximately 67% of the outstanding Common Stock of
the Company on the date of this Agreement.

WHEREAS,
the Significant Stockholders collectively owned approximately 76.5% of the
outstanding capital stock of STI prior to the Mergers and as a result of the
Mergers received 874,266 Shares of the Common Stock of the Company, which
represents approximately 21% of the outstanding Common Stock of the Company on
the date of this Agreement.

WHEREAS,
the Company and the Stockholders have agreed to enter into this Agreement as a
condition precedent for consummation of the Mergers.

NOW,
THEREFORE, in consideration of the mutual covenants, representations,
warranties and obligations set forth in this Agreement, the parties hereto
agree as follows:

1.         Voting
Agreements.

1.1          Upon the closing of a Qualified Public Offering,
each Stockholder agrees to vote, or cause to be voted, all shares of Stock
owned by such Stockholder, or over which such Stockholder has voting control, from
time to time and at all times, in whatever manner as shall be necessary to
ensure that the Chief Executive Officer of the Company shall serve on the Board
of Directors of the Company.

1.2          In order to effectuate Section 1.1, upon the closing
of a Qualified Pubic Offering, each Stockholder hereby grants to the Secretary
of the Company an irrevocable proxy pursuant 

 

to Section 212(e) of the General Corporation Law of the State of
Delaware, coupled with an interest, solely for the purpose of voting all of the
shares of Stock of the Company owned by the grantor of the proxy for the
election of directors in accordance with Section 1.1.  Each Stockholder agrees to take any further
actions necessary to effectuate Section 1.1, including, without
limitation, the calling of a special meeting of the Stockholders in order to
nominate and elect directors as set forth in Section 1.1.  The Secretary of the Company will exercise
such proxy to give effect to this Section 1.1, if necessary.

2.             No Other Arrangements or Agreements.  Each of the Stockholders agrees
with the Company and the other Stockholders that such Stockholder (as the case
may be) will not be a party to or enter into any such other arrangements or
agreements as described above with any other Person or grant a proxy or power
of attorney with respect to the Stock, in either case, which is inconsistent
with the Stockholder’s obligations pursuant to this Agreement as long as any of
the terms of this Agreement remain in effect without the Requisite Consent.

3.             Amendment and Modification.  This Agreement may be amended,
modified or supplemented only upon receipt of the Requisite Consent. The
Company shall notify all Stockholders promptly after any such amendment,
modification or supplement shall take effect.

4.             Termination.

4.1          Termination Generally. 
Any party to, or Person who is subject to, this Agreement who ceases to
own any shares of Stock or any interest therein in accordance with the terms of
this Agreement shall cease to be a party to, or Person who is subject to, this
Agreement and thereafter shall have no rights or obligations hereunder.

4.2          Termination of Rights and Obligations.  All rights and obligations
pursuant to this Agreement, except for obligations that terminate earlier by
their terms, shall terminate upon the date on which Michael G. Shook owns less
than 50% of the Stock  issued to him at
the Closing of the Mergers.

5.             Recapitalization, Exchanges, etc. Affecting the Stock.  The provisions of this
Agreement shall apply to any and all shares of capital stock of the Company or
any successor or assignee of the Company (whether by merger, consolidation,
sale of assets or otherwise) which may be issued in respect of, in exchange
for, or in substitution for the shares of Stock, by reason of any stock dividend,
split, reverse split, combination, recapitalization, reclassification, merger,
consolidation, or otherwise in such a manner as to reflect the intent and
meaning of the provisions hereof.

6.             No Third Party Beneficiaries.  Except as otherwise provided
herein, this Agreement is not intended to confer upon any Person, except for
the parties hereto, any rights or remedies hereunder.

7.             Further Assurances.   Each party hereto shall do and
perform or cause to be done and performed all such further acts and things and
shall execute and deliver all such other agreements, certificates, instruments
and documents as any other party hereto or Person subject hereto may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

 

-2-

 

8.             Governing Law.  This Agreement and the rights and obligations
of the parties hereunder shall be governed by, and construed and interpreted in
accordance with, the laws of the State of Delaware, without giving effect to
the choice of law principles thereof.

9.             Invalidity of Provision.  The invalidity or unenforceability of any
provision of this Agreement in any jurisdiction shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of this Agreement, including that provision, in
any other jurisdiction.

10.          Notices.  All notices, requests, demands, waivers and
other communications required or permitted to be given under this Agreement
shall be in writing and shall be deemed to have been duly given if (a)
delivered personally, (b) mailed, certified or registered mail with postage
prepaid, (c) sent by next-day or overnight mail or delivery or (d) sent by
facsimile as follows:

if to the Company:                                                                                              Consonus
Technologies, Inc.

                                                                                                                                                                                                301 Gregson
Drive

                                                                                                                                                                                                Cary, North
Carolina 27511

Facsimile: (919) 379-8000

Attention: Chief Executive Officer

If to any Stockholder:                                                                             to his address
or his facsimile number as listed on the signature page.

or to such other Person or address as any party shall specify by notice
in writing to the Company.  All such
notices, requests, demands, waivers and other communications shall be deemed to
have been received (w) if by personal delivery on the day after such delivery,
(x) if by certified or registered mail, on the seventh business day after the
mailing thereof, (y) if by next-day or overnight mail or delivery, on the day
delivered, (z) if by facsimile on the next day following the day on which such
telecopy was sent, provided that a copy is also sent by certified or registered
mail.

11.          Defined Terms.  As used in this Agreement, the following terms shall have the meanings
ascribed to them below:

(a)           Board.  The term “Board” means the Board of Directors
of the Company.

(b)           Person.  The
term “Person” means an individual, corporation, partnership, limited liability
company, association, trust or other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

(c)           Qualified Public Offering.  The term “Qualified Public Offering” shall
mean the initial offer and sale of shares of the Company’s Stock pursuant to a
registration statement filed and made effective pursuant to the rules of the
Toronto Stock Exchange or other national stock exchange which shall be a best
efforts commitment public offering of the Company’s Stock by a major bracket
underwriter resulting in net proceeds to the Company of Ten Million Dollars
($10,000,000) or more.

 

-3-

 

(d)           Requisite Consent. 
The term “Requisite Consent” shall mean the prior written approval of
Stockholders holding at least eighty-six percent (86%) of the shares of Stock
then owned by all Stockholders.

(e)           Stock.  The
term “Stock” the common stock of the Company, par value $0.000001 per share.

(f)            Stockholders. 
The term “Stockholders” means those stockholders listed as Stockholders
on the signature pages hereto.

12.          Headings; Execution in Counterparts.  The headings and captions
contained herein are for convenience and shall not control or affect the
meaning or construction of any provision hereof.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and which
together shall constitute one and the same instrument.

13.          Entire Agreement.  This Agreement embodies the entire agreement and understanding of the
parties hereto in respect of the subject matter contained herein and supersede
all prior agreements and understandings among the parties with respect to such
subject matter.

 

 

- Remainder of page intentionally left blank. -

 

-4-

 

IN
WITNESS WHEREOF, this Agreement has been signed by each of the parties hereto
as of the date first above written.

	
   

  	
   

  	
  COMPANY 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONSONUS TECHNOLOGIES,
  INC. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/Michael G. Shook 

  
	
   

  	
   

  	
   

  	
  Michael G. Shook, Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STOCKHOLDERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Knox Lawrence International,
  LLC 

  	
   

  	
  KNOX LAWRENCE
  INTERNATIONAL, LLC 

  
	
  445 Park Avenue, 20th
  Floor 

  	
   

  	
   

  
	
  New York, NY 10022 

  	
   

  	
  By: 

  	
       /s/Nana Baffour 

  
	
  Attn: Chairman 

  	
   

  	
   

  	
  Nana Baffour, Managing
  Principal

  
	
  Facsimile No.: (212)
  792-0958

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  107 Avenue of the Estates 

  	
   

  	
  /s/Michael
  G. Shook

  
	
  Cary, NC 27511 

  	
   

  	
  Michael G. Shook

  
	
  Facsimile No.: (___)__________________

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  316 Stanley Drive 

  	
   

  	
  /s/Irvin Miglietta

  
	
  Glastonbury, CT 06033 

  	
   

  	
  Irvin Miglietta

  
	
  Facsimile No.: (___)__________________

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ____________________________

  	
   

  	
  /s/Thomas
  Colleary

  
	
  ____________________________

  	
   

  	
  Thomas Colleary

  
	
  ____________________________

  	
   

  	
   

  
	
  Facsimile No.: (___)__________________

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  116 Bosswood Ct. 

  	
   

  	
  /s/William
  M. Shook

  
	
  Cary, NC 27511 

  	
   

  	
  William M. Shook

  
	
  Facsimile No.: (___)__________________

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

-5-

 

EXHIBIT A

SIGNIFICANT STOCKHOLDERS

 

	
  Name

  	
   

  	
  Shares Owned

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael G. Shook

  	
   

  	
  387,910

  	
   

  
	
  Irvin Miglietta

  	
   

  	
  276,297

  	
   

  
	
  Thomas Colleary

  	
   

  	
  105,256

  	
   

  
	
  William M. Shook

  	
   

  	
  104,803EXHIBIT 10.1

 

EXECUTION COPY

 

ASSET PURCHASE AGREEMENT

 

by and between

 

CONSONUS, INC.

(“Seller”)

 

and

 

CONSONUS ACQUISITION CORP.

(“Purchaser”)

 

DATED AS OF

 

MAY 31, 2005

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 1.1

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 1.2

  	
  Interpretation

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 1.3

  	
  Accounting Terms and
  Determinations

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 1.4

  	
  Legal Representation of
  the Parties

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II PURCHASE AND
  SALE OF THE ACQUIRED ASSETS

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.1

  	
  Purchase and Sale

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.2

  	
  Assets

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.3

  	
  Liabilities

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.4

  	
  Closing

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.5

  	
  Deliveries

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.6

  	
  Allocation of Purchase
  Price

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 2.7

  	
  Purchase Price
  Adjustment

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III
  REPRESENTATIONS AND WARRANTIES OF SELLER 

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.1

  	
  Organization, Good
  Standing and Power

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.2

  	
  Enforceability

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.3

  	
  No Conflict

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.4

  	
  Existing Condition

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.5

  	
  Assets — Title and
  Condition

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.6

  	
  Taxes

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.7

  	
  Compliance With
  Environmental Laws

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.8

  	
  Compliance With
  Applicable Laws

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.9

  	
  Legal Proceedings

  	
   

  	
  18

  

 

 

 

 

	
   

  	
   

  	
  Section 3.10

  	
  Contracts

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.11

  	
  Intellectual Property

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.12

  	
  Brokers Fee

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.13

  	
  Certain Payments

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.14

  	
  Financial Statements

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.15

  	
  Employees; Labor

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.16

  	
  Interest In Other
  Entities; No Third Party Options

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.17

  	
  Seller’s Books and
  Records

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 3.18

  	
  Seller Disclosure
  Schedule

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF PURCHASER 

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.1

  	
  Organization and Good
  Standing

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.2

  	
  Enforceability

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.3

  	
  No Conflicts; Consent

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.4

  	
  Certain Proceedings

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.5

  	
  Financing

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.6

  	
  Brokers Fee

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.7

  	
  Seller Consents

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 4.8

  	
  Investigation By
  Purchaser

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V COVENANTS 

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 5.1

  	
  Expenses

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 5.2

  	
  Additional Documents
  and Further Assurances; Cooperation

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 5.3

  	
  Access to Information

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 5.4

  	
  Public Disclosure

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 5.5

  	
  Employment Issues

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 5.6

  	
  Restrictive Covenants

  	
   

  	
  24

  

 

ii

 

	
   

  	
   

  	
  Section 5.7

  	
  Accounting

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI
  INDEMNIFICATION; REMEDIES 

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.1

  	
  Indemnification by
  Seller

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.2

  	
  Indemnification by
  Purchaser

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.3

  	
  Time Limitations on
  Obligations

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.4

  	
  Procedures

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.5

  	
  Dollar Limitation on
  Seller’s Indemnification Obligations

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.6

  	
  No Consequential
  Damages; Additional Limitations

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.7

  	
  Subrogation

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 6.8

  	
  Additional
  Environmental Covenant and Indemnity

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS 

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.1

  	
  Amendments

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.2

  	
  Notices

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.3

  	
  Counterparts

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.4

  	
  Entire Agreement

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.5

  	
  No Third-Party Beneficiaries

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.6

  	
  Severability

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.7

  	
  Choice of Law

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.8

  	
  Enforcement; Venue

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.9

  	
  Waivers

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 7.10

  	
          No
  Assignment

  	
   

  	
  33

  

 

iii

 

	
  EXHIBITS:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A:

  	
   

  	
  SECURED SUBORDINATED
  PROMISSORY NOTE

  	
   

  	
  A-l

  
	
  EXHIBIT B:

  	
   

  	
  ASSIGNMENT AND
  ASSUMPTION AGREEMENT

  	
   

  	
  B-l

  
	
  EXHIBIT C:

  	
   

  	
  BILL OF SALE

  	
   

  	
  C-l

  
	
  EXHIBIT D:

  	
   

  	
  GROUND LEASE

  	
   

  	
  D-l

  
	
  EXHIBIT E:

  	
   

  	
  REAL PROPERTY DEED

  	
   

  	
  E-l

  
	
  EXHIBIT F:

  	
   

  	
  SUBLEASE AGREEMENT

  	
   

  	
  F-l

  
	
  EXHIBIT G:

  	
   

  	
  MASTER SERVICES
  AGREEMENT

  	
   

  	
  G-l

  
	
  EXHIBIT H:

  	
   

  	
  CONSULTING AGREEMENT

  	
   

  	
  H-l

  
	
  EXHIBIT I:

  	
   

  	
  BUILDING DEED

  	
   

  	
  I-1

  
	
  EXHIBIT J:

  	
   

  	
  SECURITY AGREEMENT

  	
   

  	
  J-l

  
	
  EXHIBIT K:

  	
   

  	
  TRUST DEED

  	
   

  	
  K-l

  
	
  EXHIBIT L:

  	
   

  	
  EMPLOYMENT AGREEMENT

  	
   

  	
  L-l

  
	
  EXHIBIT M:

  	
   

  	
  GUARANTY

  	
   

  	
  M-l

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
  S-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1.1

  	
   

  	
  Calculation of Target Net Book Value

  	
   

  	
   

  
	
  Schedule 2.2(a)

  	
   

  	
  Acquired Assets

  	
   

  	
   

  
	
  Schedule 2.2(b)

  	
   

  	
  Excluded Assets

  	
   

  	
   

  
	
  Schedule 2.3(a)

  	
   

  	
  Assumed Liabilities

  	
   

  	
   

  
	
  Schedule 2.3(b)

  	
   

  	
  Excluded Liabilities

  	
   

  	
   

  
	
  Schedule 2.6

  	
   

  	
  Allocation of Purchase Price

  	
   

  	
   

  
	
  Schedule 2.7(a)

  	
   

  	
  Form of Closing Date Balance Sheet

  	
   

  	
   

  
	
  Schedule 5.5

  	
   

  	
  Employment Offers/Terms

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DISCLOSURE SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Jurisdictions

  	
   

  	
   

  
	
  Section 3.3

  	
   

  	
  Conflicts

  	
   

  	
   

  
	
  Section 3.4

  	
   

  	
  Existing Condition

  	
   

  	
   

  
	
  Section 3.5

  	
   

  	
  Title Exceptions

  	
   

  	
   

  
	
  Section 3.7

  	
   

  	
  Environmental Disclosures

  	
   

  	
   

  
	
  Section 3.8

  	
   

  	
  Compliance Disclosures

  	
   

  	
   

  
	
  Section 3.9

  	
   

  	
  Legal Proceedings

  	
   

  	
   

  
	
  Section 3.11

  	
   

  	
  Intellectual Property Disclosures

  	
   

  	
   

  
	
  Section 3.14

  	
   

  	
  Financial Statements

  	
   

  	
   

  
	
  Section 3.15

  	
   

  	
  Employees

  	
   

  	
   

  

 

 

ASSET PURCHASE AGREEMENT

 

ASSET PURCHASE
AGREEMENT, dated as of May 31, 2005 (this “Agreement”), by and between
Consonus, Inc., a Utah corporation (the “Seller”), and Consonus Acquisition
Corp., a Delaware Corporation (the “Purchaser”).

 

Seller is engaged
in the business of designing, building, and operating data centers, information
technology networks and web-enabled application delivery systems, which are
delivered through Seller’s centers, voice and data network engineering,
internet application integration and other managed services (the “Business”).

 

Seller wishes to
sell to Purchaser and Purchaser wishes to purchase from Seller substantially
all of the assets related to the Business as described in this Agreement,
subject to the terms and conditions hereinafter set forth.

 

As an inducement
to Purchaser to enter into this Agreement, Questar InfoComm, Inc., the
immediate parent company of Seller, has agreed to indemnify and hold harmless
Purchaser from certain claims as described in Article VI herein.

 

In consideration
of the foregoing and the mutual covenants in this Agreement, and for such other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Seller and Purchaser, intending to be legally bound, agree as
follows:

 

ARTICLE I 

DEFINITIONS

 

Section 1.1    Definitions. For purposes of this
Agreement, the following terms and variations thereof have the meanings
specified or referred to in this Section 1.1:

 

“Accounting Firm”
has the meaning set forth in Section 2.7(c).

 

“Acquired Assets”
has the meaning set forth in Section 2.2(a).

 

“Agreement” has
the meaning set forth in the first paragraph.

 

“Allocation
Schedule” has the meaning set forth in Section 2.6.

 

“Assigned
Contracts” has the meaning set forth in Section 2.2(a).

 

“Assignment and
Assumption Agreement” has the meaning set forth in Section 2.1(b).

 

“Assumed
Liabilities” has the meaning set forth in Section 2.3(a).

 

“Bill of Sale” has
the meaning set forth in Section 2.5(a)(i).

 

 

“Book Value” means
as of any date of determination, the excess of book value of the Acquired
Assets as of such date over the Assumed Liabilities as of such date determined
in accordance with GAAP.

 

“Breach” means any
inaccuracy in or breach of (subject to any materiality or knowledge qualifiers
as expressly set forth in this Agreement), or any failure to perform or comply
with, a representation, warranty, covenant, obligation, or other provision of
this Agreement.

 

“Building” means
the building, but not the real property, located at 118 South 1000 West, Salt
Lake City, Utah, together with all improvements located thereat and thereon, to
be acquired by Purchaser on the Closing Date.

 

“Building Deed”
has the meaning set forth in Section 2.5(a)(x).

 

“Business Day”
means any day other than a Saturday, a Sunday or a day when commercial banks in
New York, New York or Salt Lake City, Utah are authorized by law, rule or
regulation to be closed.

 

“Claim Notice” has
the meaning set forth in Section 6.4(a).

 

“Closing” has the
meaning set forth in Section 2.4.

 

“Closing Date”
means the date and time as of which the Closing actually takes place.

 

“Closing Date
Balance Sheet” has the meaning set forth in Section 2.7(a).

 

“Closing Date Book
Value” has the meaning set forth in Section 2.7(a). The Closing Date Book Value
shall be calculated in the same manner as the Target Net Book Value.

 

“Closing Payment”
has the meaning set forth in Section 2.1(b).

 

“Code” means the
Internal Revenue Code of 1986, as amended to date.

 

“Conflict” means any
contravention, conflict, violation or breach.

 

“Consent” means
any approval, consent, registration, filing, ratification, waiver, or other
authorization.

 

“Consulting
Agreement” has the meaning set forth in Section 2.5(a)(viii).

 

“Contract” means
any written agreement, contract, obligation, promise, or undertaking that is
legally binding.

 

“Deductible” has
the meaning set forth in Section 6.5.

 

“Deed” has the
meaning set forth in Section 2.5(a)(iv).

 

2

 

“Employee Benefit
Plan” means any (i) “employee benefit plan” as defined in Section 3(3) of
ERISA, and (ii) bonus, equity option, equity purchase, deferred compensation,
severance, incentive plan or arrangement or other employee fringe benefit plan.

 

“Employment
Agreement” has the meaning set forth in Section 2.5(b)(viii).

 

“Enforceability
Exceptions” means bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or later in effect relating to creditors’ rights generally and
by general principles of equity, regardless of whether the proceeding is in
equity or at law.

 

“Environmental Law”
means any applicable binding and enforceable federal, state or local statute,
law, rule, regulation, ordinance or code relating to the environment or Hazardous
Materials, as currently enforced, including the United States Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 et seq, as amended, the Resource
Conservation and Recovery Act 42 U.S.C. §6901 et seq; the Federal Water
Pollution Control Act, 33 U.S.C. § 1251 et
seq; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq; the Clean Air Act, 42 U.S.C. §
7401 et seq; the Safe Drinking
Water Act, 42 U.S.C. § 3803 et seq; and
the Hazardous Material Transportation Act, 49 U.S.C. § 1801 et seq (to the extent it regulates
occupational exposure to Hazardous Materials).

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

 

“Excluded Assets”
has the meaning set forth in Section 2.2(b).

 

“Excluded Liabilities”
has the meaning set forth in Section 2.3(b).

 

“Facilities” means
the Building and the Real Property.

 

“GAAP” means
United States generally accepted accounting principles, consistently applied.

 

“Governmental
Authorization” means any: (a) Consent, permit, license, certificate, franchise,
concession, approval, consent, ratification, permission, clearance,
confirmation, endorsement, waiver, certification, designation, rating,
registration, qualification or authorization issued, granted, given or otherwise
made available by or under the authority of any Governmental Entity or pursuant
to any Law; or (b) right under any Contract with any Governmental Entity.

 

“Governmental
Entity” means any: (a) nation, state, county, city, town, village, district, or
other jurisdiction of any nature; (b) federal, state, local, municipal,
foreign, or other government; (c) governmental or quasi-governmental authority
of any nature (including any governmental agency, branch, department, official,
or entity and any court or other tribunal); (d) multi-national organization or
body; or (e) body exercising, or entitled to

 

3

 

exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature.

 

“Ground Lease” has
the meaning set forth in Section 2.5(a)(iii).

 

“Ground Lease Title
Commitment” has the meaning set forth in Section 2.5(a)(xi).

 

“Hazardous
Materials” means any substances that are defined or listed in, or otherwise
classified pursuant to Environmental Laws as “hazardous substances,” “hazardous
materials,” “hazardous wastes,” “toxic substances,” “pollutants,” “toxic
pollutants,” “hazardous air pollutants,” “contaminant” or any other similar
designation.

 

“Indemnified Party”
means a Person entitled to indemnification under Section 6.1 or 6.2.

 

“Indemnifying
Party” means a Person obligated to provide indemnification under Section 6.1 or
6.2.

 

“Intellectual
Property” means all intellectual property owned or licensed (as licensor or
licensee) by Seller in which Seller has a proprietary interest, including:

 

(i)        Seller’s name, all assumed fictional
business names, trade names, registered and unregistered trademarks, service
marks and applications (collectively, “Marks”);

 

(ii)       All patents, patent applications and
inventions and discoveries that may be patentable (collectively, “Patents”);

 

(iii)      all registered copyrights in both
published works and unpublished works (collectively, “Copyrights”);

 

(iv)      all rights in mask works;

 

(v)       all know how, trade secrets, confidential
or proprietary information, customer lists, software, technical information,
data, process technology, plans, drawings and blue prints (collectively, “Trade
Secrets”); and

 

(vi)      all rights in internet domain names
presently used by Seller (collectively “Net Names”).

 

“Law” means any
federal, state, local, municipal, foreign, international, multinational, or
other constitution, law, ordinance, principle of common law, regulation, rule,
statute, treaty, or administrative order.

 

“Leases” mean
collectively the Ground Lease and the Sublease.

 

4

 

“Liens” means all
mortgages, liens, security interests, charges, easements, leases, subleases,
rights of way, options, claims or other similar encumbrances. A Lien shall not
include any Permitted Liens.

 

“Losses” means any
out-of-pocket loss, liability, claim, damage or expense (including reasonable
legal fees and expenses), fines or penalties.

 

“Lowest Cost
Response” means the response required or allowed under Environmental Laws that
addresses the condition present at (x) the lowest cost (considered as a whole
taking into consideration any negative impact such response may have on the
conduct of the applicable Party’s business and any potential additional costs
or liabilities that may arise as a result of such response) as compared to any
other response that is consistent with Environmental Laws and (y) consistent
with the policies of such Party to address similar conditions present, if any,
at such Party’s other properties. Taking no action shall constitute the Lowest
Cost Response if, after investigation, taking no action is determined to be
consistent with Environmental Laws, any requirements of contracts, leases or
other agreements binding on the property and any requirements of any
governmental authority with jurisdiction. If taking no action is not consistent
with Environmental Laws, the least costly non-permanent remedy (such as
mechanisms to contain or stabilize hazardous substances) shall be the Lowest
Cost Response, provided that such non-permanent remedy is consistent with the
Environmental Laws and least costly permanent remedy.

 

“Material Adverse
Effect” means a material adverse effect on (i) the long term business,
financial condition, operations, assets or properties or results of operations
of the Business or (ii) the consummation of the transactions contemplated by
this Agreement; provided that the foregoing shall not include events or effects
relating to or arising from (a) the economy of the United States generally or
of the state of Utah in particular, (b) any disruption or adverse change in the
financial or capital markets generally or (c) events or circumstances that
affect a Party’s business in the same manner and to the same extent as other
businesses in such industry generally.

 

“Master Services
Agreement” has the meaning set forth in Section 2.5(a)(vii).

 

“Notice of
Disagreement” has the meaning set forth in Section 2.7(b)

 

“Order” means any
award, decision, injunction, judgment, order, ruling, subpoena, or verdict
entered, issued, made, or rendered by any court, administrative agency, or
other Governmental Entity or by any arbitrator.

 

“Party” means
either Purchaser or Seller, as the case may be.

 

“Permitted Lien”
means (a) mechanics’, carriers’, workers’ and repairers’ Liens, purchase money
security interests and other similar liens arising or incurred in the ordinary
course of business related to obligations as to which (i) there is no default
on the part of the applicable Party and (ii) Seller has not received notice of
the commencement of foreclosure

 

5

 

actions with regard
thereto; (b) Liens for current Taxes and assessments not yet delinquent, or the
amount or validity of which is being contested in good faith by appropriate
proceedings during which collection or enforcement against the relevant
property is stayed; (c) applicable zoning laws and ordinances and municipal
regulations and rights reserved to or vested in any Governmental Entity to
control or regulate real property and realty rights; (d) Liens, easements,
encumbrances and reservations and restrictions of record, or those not arising
pursuant to an instrument of record, but that would be disclosed by an accurate
survey; and (e) any other Liens disclosed in Section 3.5 of the Seller
Disclosure Schedule or that would not reasonably be expected to have a Material
Adverse Effect; provided that none of the items described in (c) and (d) above
violate or prohibit the use of the property as a Data Center and activities
ancillary thereto.

 

“Person” means any
individual, corporation (including any non-profit corporation), general or
limited partnership, limited liability company, joint venture, estate, trust,
association, organization, labor union, or other entity or any Governmental
Entity.

 

“Pre-Existing
Environmental Condition” shall have the meaning set forth in Section 6.8(a).

 

“Proceeding” means
any action, arbitration, audit, hearing, written claim, investigation,
litigation, or suit (whether civil, criminal, administrative, investigative, or
informal) commenced, brought, conducted, or heard by or before, or otherwise
involving, any Governmental Entity or arbitrator.

 

“Purchase Price”
has the meaning set forth in Section 2.1(b).

 

“Purchaser” has
the meaning set forth in the first paragraph.

 

“Purchaser
Documents” has the meaning set forth in Section 2.5(b).

 

“Real Property”
means the real property and building owned by Seller located at 7202 South Campus
Drive, West Jordan, Utah to be acquired by Purchaser on the Closing Date.

 

“Real Property
Deed” has the meaning set forth in Section 2.5(a)(iv).

 

“Real Property
Title Commitment” have the meaning set forth in Section 2.5(a)(v).

 

“Reasonable
Efforts” means the efforts that a prudent Person desirous of achieving a result
would use in similar circumstances to achieve that result in a timely manner;
provided, however, that a Person required to use Reasonable Efforts under this
Agreement will not be required to make any material change to its business,
participate in any litigation, dispose of any material asset, expend material
funds, incur any material burden or take actions that would result in a
material adverse change in the benefits to such Person.

 

“Related
Agreements” has the meaning set forth in Section 2.5(a)(ix).

 

6

 

“Representative”
means with respect to a particular Person, any director, officer, employee,
agent, consultant, advisor, or other representative of the Person, including
legal counsel, accountants, and financial advisors.

 

“Secured
Subordinated Promissory Note” has the meaning set forth in Section 2.1(b).

 

“Security
Agreement” has the meaning set forth in Section 2.5(b)(iii).

 

“Seller” has the
meaning set forth in the first paragraph.

 

“Seller Disclosure
Schedule” means the disclosure schedule Seller delivered to Purchaser
concurrently with the execution and delivery of this Agreement.

 

“Seller Documents”
has the meaning set forth in Section 2.5(a).

 

“Sublease” has the
meaning set forth in Section 2.5(a)(vi).

 

“Target Net Book
Value” means US $12,983,368. The calculation of the Target Net Book Value is
set forth on Schedule 1.1.

 

“Tax” means (a)
any income, gross receipts, ad valorem, premium, excises, value-added, sales,
use, transfer, franchise, license, severance, stamps, occupation, service,
lease, withholding, employment, social security, unemployment, real property,
personal property, environmental, profit, vehicle, payroll, or property tax,
alternative or add-on minimum tax, or other tax fee or assessment, together
with any interest and any penalty, addition to tax or additional amount imposed
by any Governmental Entity responsible for the imposition of any such tax, with
respect to Seller and (b) any liability of Seller for the payment of any amount
of the type described in clause (a) as a result of Seller being a member of an
affiliated or combined group with, or a successor to, or transferee of, any
other Person prior to the Closing Date.

 

“Third Party Claim”
has the meaning set forth in Section 6.4(a).

 

“Title Agent” has
the meaning set forth in Section 2.5(a)(v).

 

“Threatened”
means, with respect to a claim, Proceeding, dispute, action, or other matter,
that any written demand has been made or any written notice has been given to
the applicable Party.

 

“Transactions”
means all of the transactions contemplated by this Agreement, including (a) the
purchase and sale of the Acquired Assets, the assumption of the Assumed
Liabilities by the Purchaser and the retention and assumption of the Excluded
Liabilities by Seller; and (b) the performance by Purchaser and Seller of their
respective covenants and obligations under this Agreement.

 

“Trust Deed” has
the meaning set forth in Section 2.5(b)(vii).

 

7

 

Section 1.2    Interpretation. In this Agreement,
unless a clear contrary intention appears:

 

(a)       the singular number includes the plural
number and vice versa;

 

(b)       reference to any Person includes such
Person’s successors and assigns but, if applicable, only if such successors and
assigns are not prohibited by this Agreement, and reference to a Person in a
particular capacity excludes such Person in any other capacity or individually;

 

(c)       reference to any gender includes each
other gender;

 

(d)       reference to any agreement, document or
instrument means such agreement, document or instrument as amended or modified
and in effect from time to time in accordance with the terms thereof;

 

(e)       reference to any Law means such Law as in
effect on the date of this Agreement;

 

(f)        “hereunder,” “hereof,” “hereto,” and
words of similar import shall be deemed references to this Agreement as a whole
and not to any particular Article, Section or other provision hereof;

 

(g)       “including” (and with correlative meaning
“include”) means including without limiting the generality of any description
preceding such term;

 

(h)       “or” is used in the inclusive sense of “and/or”;

 

(i)        with respect to the determination of any
period of time, “from” means “from and including” and “to” means “to but
excluding”;

 

(j)        “knowledge,” (or words of similar
import) when used with respect to Seller, means the actual knowledge of either
of Shahab Saeed or David Fawson; and

 

(k)       references to documents, instruments or
agreements shall be deemed to refer as well to all addenda, exhibits, schedules
or amendments thereto.

 

Section 1.3    Accounting Terms and Determinations.
Unless otherwise specified herein, all accounting terms used herein shall be
interpreted and all accounting determinations hereunder shall be made in
accordance with GAAP.

 

Section 1.4    Legal Representation of the Parties.
This Agreement was negotiated by the Parties with the benefit of legal
representation, and any rule of construction or interpretation otherwise
requiring this Agreement to be construed or interpreted against any Party shall
not apply to any construction or interpretation hereof.

 

8

 

ARTICLE II

PURCHASE AND SALE OF THE ACQUIRED ASSETS

 

Section 2.1    Purchase and Sale.

 

(a)       On the terms of, and subject to the
conditions in, this Agreement and for the purchase price set forth below,
Purchaser, in reliance upon Seller’s representations and warranties made
herein, agrees to (i) purchase from Seller, and Seller agrees to sell, convey,
transfer, assign and deliver to Purchaser, on the Closing Date, all of Seller’s
right, title and interest in and to all of the Acquired Assets, free and clear
of all Liens, except for (A) Liens related to the Assumed Liabilities and (B)
Permitted Liens and (ii) assume and be responsible for the timely satisfaction
of all of the Assumed Liabilities, whether such liabilities are direct or
indirect, matured or unmatured, fixed or contingent or otherwise.

 

(b)       As full consideration for the sale of the
Acquired Assets to Purchaser, and subject to the terms and conditions of this
Agreement, Purchaser shall pay to Seller against delivery to Purchaser of all
of Seller’s right, title and interest in and to the Acquired Assets a total
purchase price of US $16,300,000 (as the same may be adjusted pursuant to
Section 2.7, the “Purchase Price”). Subject to the terms and conditions hereof,
the Purchase Price shall be payable as follows: (i) Purchaser shall deliver to
Seller a wire transfer of immediately available funds to Seller’s account, in
the amount of US $12,750,000 (the “Closing Payment”); and (ii) Purchaser shall
execute and deliver to Seller, simultaneous with the execution hereof, a
secured promissory note payable to Seller in the principal amounts of US
$3,550,000, a copy of which is attached hereto as Exhibit “A” (the “Secured
Subordinated Promissory Note”), and an Assignment and Assumption Agreement, a
copy of which is attached hereto as Exhibit “B” (the “Assumption
Agreement”).

 

Section 2.2    Assets.

 

(a)       “Acquired Assets” means (1) all
inventories, equipment, components, parts and supplies listed in Schedule
2.2(a); (2) the tangible assets listed in Schedule 2.2(a); (3) all trade
accounts and notes receivable; (4) all prepaid assets, including, without
limitation, all prepaid rentals, taxes (excluding income taxes) and deposits;
(5) all equipment owned and leased listed in Schedule 2.2(a); (6) all licenses
and permits listed in Schedule 2.2(a) (to the extent such licenses and permits
may be transferred under Law); (7) all of Seller’s customer contracts, supply
contracts, and other contracts and arrangements listed as Assigned Contracts in
Section 2.2(a) of the Seller Disclosure Schedule (the “Assigned Contracts”);
(8) all books and records with respect to the operation of Seller’s business
including, without limitation, customer lists; (9) as authorized by its
insurers and to the extent assignable, all insurance policies (maintained
solely by Seller); (10) all Intellectual Property listed in Schedule 2.2(a);
(11) the Real Property and the Building; and (12) such other assets listed in
Schedule 2.2(a). Acquired Assets shall not include any of the Excluded Assets.

 

(b)       The term “Excluded Assets” means:

 

9

 

(i)        the stock ledgers, minute books and
corporate seals of Seller, any other books and records related to internal
corporate matters of Seller, all claims and rights to any Tax refunds for
periods prior to the Closing relating to the Acquired Assets, any Contracts not
assumed by Purchaser, all cash and cash equivalents of Seller and all other
assets of Seller not specifically identified in Section 2.2(a), including
without limitation the assets listed in Schedule 2.2(b);

 

(ii)       all rights, claims and credits of Seller
relating to any Excluded Asset or any Excluded Liability, including any such
items arising under insurance policies, and all guarantees, warranties,
indemnities and similar rights in favor of Seller in respect of any Excluded
Asset or any Excluded Liability;

 

(iii)      all inter-company notes receivable;

 

(iv)      all cash sums of Seller on deposit; and

 

(v)       all business, properties, assets,
goodwill and rights of Seller that are not Acquired Assets, including, without
limitation, the assets listed in Schedule 2.2(b).

 

(c)       Subject to the terms of this Agreement,
this Agreement shall not constitute an agreement to assign or transfer any
Governmental Authorization, Contract or other agreement or arrangement or any
claim, right or benefit arising thereunder or resulting from such, if an
assignment or transfer or an attempt to make such an assignment or transfer,
would constitute a breach or violation of such or affect adversely the rights
of Purchaser or Seller thereunder; and any transfer or assignment to Purchaser
by Seller of any interest under any such Governmental Authorization, Contract
or other agreement or arrangement that requires the Consent of a third party
shall be made with such Consent being obtained. In the event any such Consent
is not obtained on or prior to the Closing Date, Seller and Purchaser shall
cooperate and Seller shall continue to use its Reasonable Efforts to obtain any
such Consent after the Closing Date until such time as such Consent has been
obtained, and Seller will cooperate with Purchaser in any lawful arrangement to
provide that Purchaser shall receive the interest of Seller, as the case may
be, in the benefits under any such Governmental Authorization, Contract or
other agreement or arrangement, including performance by Seller, as the case
may be, as agent, provided that Purchaser shall undertake to pay or satisfy the
corresponding liabilities for the enjoyment of such benefit to the extent
Purchaser would have been responsible therefor if such Consent had been
obtained. Seller shall have no obligation to pay or discharge, and shall have
no obligation to indemnify and hold Purchaser harmless from and against, any
and all costs of seeking to obtain or obtaining any such Consent or Governmental
Authorization whether before or after the Closing Date.

 

Section 2.3    Liabilities.

 

(a)       The term “Assumed Liabilities” means all
of the liabilities set forth in Schedule 2.3(a), including all the following
liabilities, obligations and commitments of Seller:

 

10

 

(i)        any and all liabilities, obligations and
commitments of Seller under the Assigned Contracts, whether such liabilities,
obligations and commitments relate to a period prior to or from and after the
Closing, but not any such liabilities, obligations or commitments arising out
of any material breach by Seller of any Assigned Contract prior to the Closing
other than those liabilities, obligations or commitments that would constitute
.. Assumed Liabilities under clause (ii) of this Section 2.3(a); and

 

(ii)       except for the liabilities related to the
Pre-Existing Environmental Condition and the Remedial Action Plan (as defined
in Section 3.7), any and all liabilities, obligations and commitments relating to
the use, ownership, operation or management of the Acquired Assets that arise,
accrue or are incurred after the Closing.

 

(b)       The term “Excluded Liabilities” means all
liabilities, obligations and commitments of Seller, including, without
limitation, the liabilities, obligations and commitments of Seller set forth on
Schedule 2.3(b) and the Permitted Liens, except for Permitted Liens set forth
on Schedule 2.3(a); provided, however, Excluded Liabilities do not include
those liabilities, obligations or commitments that constitute Assumed
Liabilities under Section 2.3(a). Excluded Liabilities shall also include the
liabilities related to the Pre-Existing Environmental Condition and the
Remedial Action Plan (as defined in Section 3.7), for which Purchaser is indemnified
for under Section 6.8. Seller shall be responsible for the timely satisfaction
of all the Excluded Liabilities, whether such liabilities are direct, indirect,
matured or unmatured, fixed, contingent or otherwise.

 

Section 2.4    Closing. The purchase and sale of the
Acquired Assets, the assumption of the Assumed Liabilities, and the
consummation of the other transactions contemplated by this Agreement (the “Closing”)
takes place at the offices of Holme Roberts & Owen, 299 South Main Street,
Suite 1800, Salt Lake City, Utah 84111, simultaneous with the execution of this
Agreement.

 

Section 2.5    Deliveries. Concurrent with the
execution of this Agreement:

 

(a)       Seller shall deliver or cause to be
delivered to Purchaser, against payment of the Purchase Price the following
(collectively, the “Seller Documents”):

 

(i)        an executed Bill of Sale, a copy of
which is attached to this Agreement as Exhibit “C”;

 

(ii)       an executed real property lease with
respect to the real property located at 118 South 1000 West, Salt Lake City,
Utah, a copy of which is attached to this Agreement as Exhibit “D” (the “Ground
Lease”);

 

(iii)      an executed special warranty deed with
respect to the Real Property, a copy of which is attached to this Agreement as Exhibit
“E” (the “Real Property Deed”);

 

11

 

(iv)      an irrevocable commitment (the “Real
Property Title Commitment”) from Metro National Title Company, a Utah
corporation (the “Title Company”), to issue to Purchaser a standard coverage owner’s
title insurance policy insuring that Purchaser owns a fee interest in the Real
Property, having a policy limit equal to US $7,050,000 and listing no
exceptions to title other than the exceptions set forth in the Real Property
Title Commitment; and

 

(v)       an executed real property sublease
between Questar Corporation and Purchaser with respect to the real property
located at 180 East 100 South, Salt Lake City, Utah 84111, a copy of which is
attached to this Agreement as Exhibit “F” (the “Sublease”);

 

(vi)      an executed Master Services Agreement
between Questar Gas Company and Purchaser a copy of which is attached to this
Agreement as Exhibit “G” (the “Master Services Agreement”);

 

(vii)     an executed Consulting Agreement between
Questar Gas Company and Purchaser, a copy of which is attached to this
Agreement as Exhibit “H” (the Data Center Services Agreement);

 

(viii)    a certificate from the secretary of each of
Seller and Questar InfoComm, Inc. (A) certifying that attached to such
certificate are all requisite resolutions of Seller’s board of directors
approving the execution and delivery of this Agreement and the agreements,
documents and instruments contemplated herein (the “Related Agreements”) and
the consummation of the Transactions; (B) certifying that attached to such
certificate is the requisite consent of the shareholders of Seller approving
and authorizing the Transactions and the Related Agreements; and (C) certifying
to the incumbency of the officers of Seller executing this Agreement and the
Related Agreements;

 

(ix)       an executed special warranty deed with
respect to the Building, a copy of which is attached to this Agreement as Exhibit
“I” (the “Building Deed”);

 

(x)        an irrevocable commitment (the “Ground
Lease Title Commitment”) from the Title Company, to issue Purchaser a standard
coverage owner’s title insurance policy insuring that Purchaser owns a
leasehold interest in the Ground Lease, having a policy limit equal to US
$4,800,000 and listing no exceptions to title other than the exceptions set
forth in the Ground Lease Title Commitment;

 

(xi)       an executed amendment to Seller’s
Articles of Incorporation (to be filed by Purchaser following the Closing) to
change Seller’s corporate name to no longer include the term “Consonus;” and

 

(xii)      such other documents as reasonably
required by Purchaser.

 

12

 

(b)       Purchaser shall deliver or cause to be
delivered to Seller, against delivery of the Acquired Assets, the following
(collectively, the “Purchaser Documents”):

 

(i)        the Closing Payment;

 

(ii)       an executed Secured Subordinated
Promissory Note.

 

(iii)      an executed Security Agreement, a copy of
which is attached to this Agreement as Exhibit “J”;

 

(iv)      an executed Assumption Agreement;

 

(v)       an executed Ground Lease;

 

(vi)      a completed UCC-1, securing the
obligations of Purchaser under the Secured Subordinated Promissory Note, and
this Agreement;

 

(vii)     an executed Trust Deed, a copy of which is
attached to this Agreement as Exhibit “K”;

 

(viii)    an executed employment agreement with Daniel
Milburn (“Employment Agreement”), a copy of which is attached to this Agreement
as Exhibit “L”;

 

(ix)       an executed Sublease;

 

(x)        an executed Master Services Agreement;

 

(xi)       an executed Consulting Agreement;

 

(xii)      an executed Guaranty, a copy of which is
attached to this Agreement as Exhibit “M”;

 

(xiii)     a certificate from the secretary of
Purchaser (A) certifying that attached to such certificate are all requisite
resolutions of Purchaser’s board of directors approving the execution and
delivery of this Agreement and the Related Agreements and the consummation of
the Transactions; and (B) certifying to the incumbency of the officers of
Seller executing this Agreement and the Related Agreements; and

 

(xiv)    such other documents as reasonably required
by Seller.

 

Section 2.6    Allocation of Purchase Price. Seller
and Purchaser shall allocate the Purchase Price (including, for purposes of
this Section, any other consideration paid by Buyer and the Assumed
Liabilities) among the Acquired Assets in the manner set forth on Schedule
2.6 (the “Allocation Schedule”). Seller and Purchaser each agree to file
Internal Revenue Service Form 8594 and any required attachments thereto,
together with all federal, state, local, and foreign tax returns, in accordance
with the Allocation Schedule. Purchaser and Seller shall use such allocation
for all tax reporting purposes. If, contrary to the intent

 

13

 

of the Parties hereto as
expressed in this Section 2.6, any Governmental Entity makes or proposes
an allocation different from that contemplated in this Section 2.6,
Seller and Buyer shall cooperate with each other in good faith to contest such
Governmental Entity’s allocation (or proposed allocation).

 

Section 2.7    Purchase Price Adjustment.

 

(a)       As soon as practical and in no event
later than thirty (30) days following the Closing Date, Seller shall deliver to
the Purchaser a balance sheet of Seller as of the Closing (“Closing Date
Balance Sheet”), setting forth the Book Value at the Closing Date (“Closing
Date Book Value”). The Closing Date Balance Sheet shall be prepared in
accordance with GAAP and consistently with the calculation of Target Net Book
Value and shall be in the form attached hereto as Schedule 2.7(a).

 

(b)       During the forty-five (45) day period
immediately following the Purchaser’s receipt of the Closing Date Balance
Sheet, Purchaser shall be permitted to review Seller’s working papers and trial
balance related to the preparation of the Closing Date Balance Sheet. The
Closing Date Balance Sheet shall become final and binding upon the Parties
thirty (30) days following the Purchaser’s receipt thereof, unless Purchaser
shall give written notice of its disagreement (a “Notice of Disagreement”) to Seller
prior to such date. If a timely Notice of Disagreement is delivered to Seller,
then the Closing Date Balance Sheet (as revised in accordance with clause (x)
or (y) below) shall become final and binding upon the Parties on the earlier of
(x) the date the parties resolve in writing any differences they have with
respect to the matters specified in the Notice of Disagreement or (y) the date
all matters in dispute are finally resolved in writing by the Accounting Firm
(defined below). During the forty-five (45) days following delivery of a Notice
of Disagreement, the Parties shall seek in good faith to resolve in writing any
differences which they have with respect to the matters specified in the Notice
of Disagreement; provided that any settlement negotiations will not be
discoverable by or communicated to the Accounting Firm.

 

(c)       At the end of the forty-five (45) day
period referred to above, the Parties shall submit to Deloitte & Touche LLP
(San Francisco, California office) or if such firm is unable or unwilling to
act as the arbitrator, then a mutually satisfactory nationally recognized
accounting firm for review and resolution of all matters (but only such
matters) that remain in dispute and that were properly included in the Notice
of Disagreement or Purchase Price Statement. The Parties shall instruct the
accounting firm ultimately agreed upon (the “Accounting Firm”) to select one of
its partners experienced in purchase price adjustment disputes to make a final
determination of the Closing Date Book Value and the resulting Purchase Price
calculated with reference to such amounts to the extent such amounts are in
dispute, in accordance with the terms of this Agreement. The Parties will
cooperate with the Accounting Firm during the term of its engagement. The
Parties shall instruct the Accounting Firm to not assign a value to any item in
dispute greater than the greatest value for such item assigned by Purchaser, on
the one hand, or the Seller, on the other hand, or less than the smallest value
for such item assigned by Purchaser, on the one hand, or the Seller, on the
other hand. The Parties shall also instruct the Accounting Firm to

 

14

 

make its determination
based solely on written submissions by Purchaser and the Seller which are in
accordance with the terms of this Agreement (i.e. not on the basis of an
independent review). The Closing Date Balance Sheet and the determination of
the Closing Date Book Value shall become final and binding on the Parties on
the date the Accounting Firm delivers its final resolution in writing to the
parties (which final resolution shall be requested by the parties to be
delivered not more than sixty (60) days following submission of such disputed
matters), absent manifest clerical errors or fraud. The final resolution will
be a reasoned resolution setting forth the Accounting Firm’s reasoning in
reaching its determinations. The fees and expenses for the Accounting Firm
shall be allocated by the Accounting Firm equally between Purchaser and the
Seller.

 

(d)       Promptly after the Closing Date Balance
Sheet and the determination of the Closing Date Book Value and the resulting
Purchase Price calculated with reference to such amounts become final and
binding on the parties under Section 2.7(c) above, the estimated Closing
Payment shall be recalculated by giving effect to the final and binding Closing
Date Book Value. If the Closing Date Book Value is greater than the Target Net
Book Value, the Purchaser shall, and if the Target Net Book Value is greater
than the Closing Date Book Value, Seller shall within three (3) Business Days
after the Closing Date Book Value becomes final and binding on the Parties,
make payment by wire transfer to Seller or the Purchaser, as the case may be, in
immediately available funds of the amount of such difference, together with
interest thereon at a rate per annum equal to 9.0%, calculated on the basis of
the actual number of days elapsed divided by 365, from the Closing Date to the
date of payment, compounded annually.

 

ARTICLE III 

REPRESENTATIONS AND
WARRANTIES OF SELLER

 

Representations
and Warranties of Seller. Seller represents and warrants to
Purchaser as follows (subject to the exceptions in the Seller Disclosure
Schedule):

 

Section 3.1    Organization, Good Standing and Power.
 Seller is a corporation duly organized,
and validly existing under the laws of the State of Utah. Seller is qualified,
authorized, registered or licensed to do business as a foreign corporation in
each jurisdiction the operation of its business requires such qualification,
authorization, registration or licensing (all of which jurisdictions are listed
on Section 3.1 of the Seller Disclosure Schedule) other than the jurisdictions
where failure to do so would not have a Material Adverse Effect. Seller has the
power and authority and the legal right to own and operate its Business, to own
the Acquired Assets and to conduct the business in which it is currently
engaged. Seller does not currently have any subsidiaries nor does it own any
equity interest in any other Person not disclosed on Section 3.1 of the Seller
Disclosure Schedule.

 

Section 3.2    Enforceability.   This
Agreement has been duly authorized, executed and delivered by Seller and
constitutes the legal, valid, and binding obligation of Seller, enforceable
against it in accordance with its terms, subject to the Enforceability
Exceptions. Seller has the corporate power and authority to execute and
deliver, and perform its

 

15

 

obligations under, this
Agreement and the Transactions and any required vote of Seller’s shareholders
has been obtained in order to consummate the Transactions.

 

Section 3.3    No Conflict.    Except as set forth in Section 3.3 of the
Seller Disclosure Schedule, neither the execution and delivery of this
Agreement by Seller nor the consummation or performance of any of the
Transactions by Seller will (a) Conflict with its articles of incorporation,
charter documents or bylaws; (b) Conflict with or give any Governmental Entity
or other Person the right to prevent, delay or, to the knowledge of Seller,
otherwise interfere with any of the Transactions or to exercise any remedy or
obtain any relief under any Law or any Order to which Seller, or any of the
Acquired Assets, is subject; (c) to the knowledge of Seller, Conflict with any
provision of, or give any Person the right to declare a default or exercise any
remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate, or modify, any material Contract to which Seller is bound; or (d) to
the knowledge of Seller, result in the imposition or creation of any Lien upon
or with respect to any of the Acquired Assets. Except as otherwise set forth in
Section 3.3 of the Seller Disclosure Schedule, no Consent of any Person is
required in connection with the execution, delivery and performance of this
Agreement or the Seller Documents by Seller or the consummation of the
Transactions.

 

Section 3.4    Existing Condition.  Except as disclosed in Section 3.4 of the
Seller Disclosure Schedule, since December 31, 2004 Seller has not:

 

(a)       incurred any liabilities, other than
liabilities incurred in the ordinary course of business consistent with past
practice, or discharged or satisfied any lien or encumbrance, or paid any
liabilities, other than in the ordinary course of business consistent with past
practice, or failed to pay or discharge when due any liabilities of which the
failure to pay or discharge has caused or will cause any material damage or
risk of material loss to the Acquired Assets;

 

(b)       sold, assigned or transferred any of
Acquired Assets except in the ordinary course of business consistent with past
practice;

 

(c)       created, incurred, assumed or guaranteed
any indebtedness for money borrowed, or mortgaged, pledged or subjected to any
Lien (other than Permitted Liens), any of the Acquired Assets, except in the
ordinary course of business consistent with past practice; or

 

(d)       changed any of the material accounting
principles followed by it or the methods of applying such principles.

 

Section 3.5    Assets – Title and Condition.

 

(a)       Except as set forth in Section 3.5(a) of
the Seller Disclosure Schedule, Seller has good and valid title to all the
Acquired Assets that it purports to own, in each case free and clear of all
Liens. Purchaser will acquire the Acquired Assets free and clear of all

 

16

 

Liens other than Liens
related to the Assumed Liabilities, Permitted Liens and those set forth in
Section 3.5(a) of the Seller Disclosure Schedule.

 

(b)       Seller owns good and marketable title to
the Real Property, free and clear of any Liens, in the manner set forth in the
Real Property Title Commitment. Seller owns good and marketable title to the
Building, free and clear of any Liens. Purchaser acknowledges and agrees that:
(i) except for Seller’s representations and warranties set forth in this
Agreement, Purchaser is purchasing the Real Property and Building “as-is” as of
the date hereof and based on Purchaser’s own inspection, investigation and
evaluation; (ii) any other representations and warranties not expressly set
forth in this Agreement are disclaimed by Seller; and (iii) Seller shall not
have any responsibility or liability for the content or accuracy of any study,
survey, report, opinion or conclusion of any engineer or other person or entity
who has investigated or examined the Real Property and Building or of any
material reviewed by Purchaser with respect to the Real Property and Building.
Purchaser hereby releases and discharges Seller of all claims, causes of
action, contribution obligations, liabilities, duties and obligations of every
kind and nature relating to or arising out of Seller’s ownership or use of the
Real Property and Building or any condition, hazard, violation or circumstance
of, affecting or relating to the Real Property.

 

(c)       Seller owns good and transferable title
to all other Acquired Assets free and clear of all Liens, except for Assumed
Liabilities. Each item of Acquired Assets is in good repair and good operating
condition, ordinary wear and tear excepted, and is suitable for continued use
in the ordinary course of business. All of the Acquired Assets used in Seller’s
Business are in the possession or control of Seller.

 

Section 3.6    Taxes.  Seller has duly filed all Tax returns required
to be filed by it in respect of any Taxes, and all Taxes owed by Seller shown
thereon with respect to the Business and Acquired Assets have been paid. All
Tax returns filed by Seller with respect to the Acquired Assets are accurate in
all material respects, except where the failure to be accurate in all material
respects would not result in a Material Adverse Effect. To the knowledge of the
Seller, there are no Liens with respect to Taxes (except for Liens for current
Taxes and assessments not yet delinquent, or the amount or validity of which is
being contested in good faith by appropriate proceedings during which
collection or enforcement against the relevant property is stayed) upon any of
the Acquired Assets. Seller has not received any notice of assessment or
proposed assessment in connection with any Tax returns and there are no pending
tax examinations of or tax claims asserted against Seller or any of its assets
or properties. Seller has not extended, or waived the application of, any
statute of limitations of any jurisdiction regarding the assessment or
collection of any Taxes. Seller has made all deposits required by law to be
made with respect to employees’ withholding and other employment taxes,
including without limitation the portion of such deposits relating to taxes
imposed upon Seller. Seller will also pay before the Closing Date all sales and
use taxes arising out of the operation of the Business for all periods prior to
the Closing Date.

 

Section 3.7    Compliance With Environmental Laws.  To Seller’s knowledge, except as disclosed in
Section 3.7 of the Seller Disclosure Schedule, (a) Seller’s use of the

 

17

 

Acquired Assets complies
in all material respects with all applicable Environmental Laws as in effect on
the date hereof; except, in each case, where noncompliance would not have a
Material Adverse Effect, (b) the Real Property and Building owned by Seller
comply in all material respects with all applicable Environmental Laws, and
Seller has obtained and maintained in effect all permits required by
Environmental Laws with respect to the Real Property and Building, except, in
each case, where noncompliance would not have a Material Adverse Effect (c)
there are no past or present actions, activities, circumstances, conditions,
events or incidents, including the release, emission, discharge, presence or
disposal of any Hazardous Materials by Seller or any Person, that could
reasonably be expected to form the basis of any claim against Purchaser or the
Acquired Assets under any Environmental Law, (d) no underground storage tank or
sump for Hazardous Materials is currently located on or beneath the Real
Property or Building, (e) Seller is not a party to any environmental claim, (f)
Seller has not received any written notification of any (i) alleged, actual or
potential release of any Hazardous Materials existing or arising beneath,
above, emanating or migrating from or to the Real Property or Building, or (ii)
responsibility therefor and (g) the west portion of the property subject to the
Ground Lease is subject to an on-going Remedial Action Plan approved and
monitored by the Utah Department of Environmental Quality and, (i) the site
which is the subject of the Remedial Action Plan is in compliance with such
plan and Environmental Laws, and (ii) the slurry wall, as described in Schedule
3.7 of the Seller Disclosure Schedule, and structural integrity thereof are
intact.

 

Section 3.8    Compliance With Applicable Laws.  Except as set forth in Section 3.8 of the
Seller Disclosure Schedule, to the knowledge of Seller, Seller has complied in
all material respects with all Laws applicable to it or to the conduct of its
business, except for instances of non-compliance with such Laws that would not
reasonably be expected to have a Material Adverse Effect. Except as set forth
in Section 3.8 of the Seller Disclosure Schedule, Seller has not received any
written notice from any Governmental Entity or any other Person regarding any
actual or alleged violation of, or failure to comply with, any Law.

 

Section 3.9    Legal Proceedings.  Except as set forth in Section 3.9 of the
Seller Disclosure Schedule, there is no pending or, to Seller’s knowledge
Threatened, Proceeding that has been commenced by or against Seller that
challenges or would reasonably be expected to have the effect of preventing,
delaying, making illegal or otherwise interfering with, any of the
Transactions, other than Proceedings which would not reasonably be expected to
have a Material Adverse Effect.

 

Section 3.10   Contracts.   To the
knowledge of Seller, all Assigned Contracts are valid, binding and in full
force and effect and are enforceable by Seller in accordance with their
respective terms, except for the Enforceability Exceptions and except where the
failure to be valid, binding or in full force and effect will not result in
Losses in excess of Five Thousand Dollars ($5,000) per Assigned Contract. To
the knowledge of Seller, no other party to any Assigned Contract is in material
breach or default in any respect under any Assigned Contract. Seller makes no
representations or warranties regarding (i) Purchaser’s ability to continue the
business of Seller or to continue any existing customer relationships,

 

18

 

or (ii) Seller’s ability
to obligate or bind any third party to accept or consent to the assignment of
any of the Assigned Contracts.

 

Section 3.11   Intellectual Property.  Except as set forth in Section 3.11 of the
Seller Disclosure Schedule, there is no assigned Intellectual Property that is
registered or subject to an application for registration. Except as set forth
in Section 3.11 of the Seller Disclosure Schedule, to Seller’s knowledge,
Seller is the sole and exclusive owner of or has the right to use, without
payment to any other Person, all of the assigned Intellectual Property, except
where the failure to have such rights would not reasonably be expected to have
a Material Adverse Effect on the current use of such assigned Intellectual
Property and except for “shrink-wrap” license agreements relating to computer
software licensed in the ordinary course of Seller’s business. To Seller’s
knowledge, Seller’s current use of the assigned Intellectual Property does not
materially violate, conflict with or infringe the assigned Intellectual
Property of any other person.

 

Section 3.12   Brokers Fee.  Seller has not agreed to pay, nor has it taken
any action that might result in any Person claiming to be entitled to receive,
any brokerage commission, finder’s fee or similar commission or fee in
connection with any of the Transactions.

 

Section 3.13   Certain Payments.  To the Seller’s knowledge, Seller has not
directly or indirectly, in violation of applicable Law, made any contribution,
gift, bribe, rebate, payoff, influence payment, kickback, or other payment to
any Person, private or public, regardless of form, whether in money, property,
or services (a) to obtain favorable treatment in securing business, (b) to pay
for favorable treatment for business secured, or (c) to obtain special
concessions or for special concessions already obtained, for or in respect of
Seller.

 

Section 3.14    Financial
Statements.   Seller has provided Purchaser with: (a) unaudited
balance sheets of the Seller as of December 31, 2004, and December 31, 2003,
and the related unaudited statements of profit and loss for each of the
calendar years then ended, and (b) an unaudited balance sheet of the Seller as
of March 31, 2005 and the related unaudited statement of profit and loss for
the three (3) months then ended (collectively, the “Financial Statements”). The
Financial Statements fairly present the financial condition and results of the
operations of the Seller as of the respective dates of each such Financial
Statement and for the periods referred to therein. The Financial Statements
have been prepared in accordance with GAAP, except as set forth on Section 3.14
to the Seller’s Disclosure Schedule.

 

Section 3.15    Employees; Labor.

 

(a)       Schedule 3.15(a) of the Seller Disclosure
Schedule is a list of all current employees of Seller, and reflects their title
or position, current salary, date of hire and the date of such employee’s most
recent pay raise. Except as set forth on Schedule 3.15 of the Seller Disclosure
Schedule, Seller has no employment, retention, extension, continuation,
severance or other similar contracts with any employee of Seller. To Seller’s
knowledge, Seller has materially complied with, and each Employee Benefit Plan
is in

 

19

 

compliance with, all
applicable Laws, including ERISA, to the extent applicable, except where the
failure to so comply will not result in a Material Adverse Effect.

 

(b)       Except as set forth on Schedule 3.15(b)
of the Seller Disclosure Schedule, there are no Employee Benefit Plans of which
Seller is or was a Plan Sponsor, or to which Seller contributes or has
contributed, or in which Seller otherwise participates or maintains or has
participated or maintained or under which Seller has any Liability or
obligation;

 

(c)       Except as disclosed in Section 3.15(c) of
the Seller Disclosure Schedule, Seller has not been, and is not now, a party to
any collective bargaining agreement or other labor contract; (ii) there has not
been, there is not presently pending or existing, and to Seller’s knowledge
there is not threatened, any strike, slowdown, picketing, work stoppage or
employee grievance process involving Seller; (iii) to Seller’s knowledge, no
event has occurred or circumstances exists that could provided the basis for
any work stoppage or other labor dispute; (iv) there is not pending or, to
Seller’s knowledge, threatened against or affecting Seller any Proceeding
relating to the alleged violation of any Law pertaining to labor relations or
employment matters, including any charge or complaint filed with the National
Labor Relations Board or any comparable Governmental Entity, and there is no
organizational activity or other labor dispute against or affecting Seller or
the Facilities; (v) no application or petition for an election of or for
certification of a collective bargaining agent is pending; (vi) to Seller’s
knowledge, no grievance or arbitration Proceeding exists that might have an
adverse effect upon Seller or the conduct of its Business; (vii) there is no
lockout of any employees by Seller, and no such action is contemplated by
Seller; and (viii) to Seller’s knowledge, there has been no charge of
discrimination filed against or threatened against Seller with the Equal
Employment Opportunity Commission or similar Governmental Entity;

 

(d)       Seller has not violated the WARN Act or
any similar state or local Law. During the ninety (90) day period prior to the
date of this Agreement, Seller has not terminated any of its employees; and

 

(e)       To the knowledge of Seller, [except as
set forth in Section 3.15(e) of the Seller Disclosure Schedule], no officer,
director, agent, employee, consultant, or contractor of Seller is bound by any
Contract that purports to limit the ability of such officer, director, agent,
employee, consultant, or contractor (i) to engage in or continue or perform any
conduct, activity, duties or practice relating to the business of Seller, or
(ii) to assign to Seller or to any other Person any rights to any invention,
improvement, or discovery. To the knowledge of Seller, no former or current
employee of Seller is a party to, or is otherwise bound by, any Contract that
in any way adversely affected, affects, or will affect the ability of Seller or
Purchaser to conduct the business as heretofore carried on by Seller.

 

Section 3.16   Interest In Other Entities; No Third
Party Options. No shares of any corporation or any ownership or other
investment interest, either of record, beneficially or equitably, in any
association, partnership, joint venture or other legal entity are included in
the Acquired Assets. As of the date of this Agreement there are no existing
agreements,

 

20

 

contracts, options,
commitments or rights with, of or to any Person to acquire any of the Acquired
Assets or rights included in such assets or any interest therein. Purchaser
will not incur any liability, cost or expense in connection with the
consummation of the Transactions to any third party with whom Seller or its
agents or representatives have had discussions or negotiations regarding the
sale, transfer, assignment or disposition of all or a portion of the Acquired
Assets or the Business.

 

Section 3.17   Seller’s Books and Records.   The
books of account and other financial records of Seller are complete in all
material respects.

 

Section 3.18   Seller Disclosure Schedule.   To the
knowledge of Seller, no representation or warranty or other statement made by
Seller in this Agreement, and no warranty or other statement made by Seller in
the Seller Disclosure Schedule contains an untrue statement which could result
in a Material Adverse Effect to Purchaser. The Parties acknowledge and agree
that (a) the Seller Disclosure Schedule may include certain items and
information solely for informational purposes for the convenience of the
Parties hereto, (b) the disclosure of any matter in the Seller Disclosure
Schedule shall not be deemed to constitute an acknowledgment by Seller that the
matter is material or is required to be disclosed pursuant to the provisions of
this Agreement, (c) any fact or item disclosed in the Seller Disclosure
Schedule and referenced by a particular section in this Agreement shall, should
the existence of the fact or item or its contents be relevant to any section in
this Agreement, be deemed to be disclosed with respect to such section whether
or not a specific cross-reference appears (provided that the relevance of such
fact or item shall be reasonably evident from such disclosure), (d) the
disclosure of any fact or item in the Seller Disclosure Schedule shall not
represent an admission by Seller that such fact or item actually constitutes
noncompliance with, or a violation of, any Law to which such disclosure is
applicable as such disclosure has been made for purposes of creating exceptions
to the representations and warranties made by Seller to Purchaser, and (e) each
attachment referenced in the Seller Disclosure Schedule shall be deemed incorporated
into and a part of such Seller Disclosure Schedule.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser’s
Representations and Warranties. Purchaser represents and
warrants to Seller as follows:

 

Section 4.1    Organization and Good Standing.
Purchaser is duly organized and validly existing under the laws of the State of
Delaware and has full authority to conduct its business as it is now being
conducted and to own or use the properties and assets that it purports to own
or use.

 

Section 4.2    Enforceability. This Agreement has
been duly authorized, executed and delivered by Purchaser and constitutes the
legal, valid, and binding obligation of Purchaser, enforceable against it in
accordance with its terms, subject to the Enforceability

 

21

 

Exceptions. Purchaser has
the power and authority to execute and deliver, and perform its obligations
under, this Agreement and the Transactions.

 

Section 4.3    No Conflicts; Consent.  Neither the execution and delivery of this
Agreement by Purchaser nor the consummation or performance of any of the
Transactions by Purchaser will (with or without notice or lapse of time) (a)
Conflict with its charter or other organizational documents; (b) Conflict with
or give any Governmental Entity or other Person the right to prevent, delay or
otherwise interfere with any of the Transactions or to exercise any remedy or
obtain any relief under, any Law or any Order to which Purchaser is subject; or
(c) Conflict with any provision of, or give any Person the right to declare a
default or exercise any remedy under, or to accelerate the maturity or
performance of, or to cancel, terminate, or modify, any material Contract to
which Purchaser is bound. Purchaser is not and will not be required to give any
notice to or obtain any Consent from any Person in connection with the
execution or delivery of, or the performance of its obligations under, this
Agreement, the Purchaser Documents or the consummation of the Transactions.

 

Section 4.4    Certain Proceedings.  There is no pending Proceeding that has been
commenced by or against Purchaser that challenges, or would reasonably be
expected to have the effect of preventing, delaying, making illegal or
otherwise interfering with, any of the Transactions. To Purchaser’s knowledge,
no such Proceeding has been Threatened.

 

Section 4.5    Financing.  Purchaser has sufficient cash on hand to fund
the payment of the Purchase Price and Purchaser’s expenses in connection with
the Transactions. Purchaser will additionally maintain sufficient funds to pay
the amounts due under the Secured Subordinated Promissory Note as such amounts
come due.

 

Section 4.6    Brokers Fee.  Purchaser has not agreed to pay, nor has it
taken any action that might result in any Person claiming to be entitled to
receive, any brokerage commission, finder’s fee or similar commission or fee in
connection with any of the Transactions.

 

Section 4.7    Seller Consents.  Purchaser has agreed that Seller shall not
obtain any Consents from its customers or tenants regarding the assignment of
any Assigned Contracts from Seller to Purchaser prior to the Closing Date. In
accordance with the terms of Section 2.2(c), Seller shall use its Reasonable
Efforts to obtain such Consents from its customers or tenants and Purchaser
agrees to accept the Assigned Contracts from Seller without any such Consent.
Purchaser shall indemnify and hold Seller harmless from any Losses incurred by
Seller as a result of a breach by Purchaser of any of its obligations or duties
under the Assigned Contracts.

 

Section 4.8    Investigation By Purchaser.  In reliance upon Seller’s representations and
warranties contained in this Agreement: (i) Purchaser has been given full
access to and the opportunity to review the Acquired Assets, books, records,
Contracts and employees of Seller, and has been given the opportunity to meet
with officers and other Representatives of Seller for the purpose of
investigating and obtaining information regarding the Acquired Assets, Seller’s
business, operations and legal affairs and (ii) as of the date of this

 

22

 

Agreement, no
Representative of Purchaser has knowledge of any fact or circumstance that
would result in a Breach by Seller.

 

ARTICLE V

COVENANTS

 

Section 5.1    Expenses.  Except as otherwise expressly provided in this
Agreement, each Party will bear its respective expenses incurred in connection
with the preparation and negotiation of, and performance of its obligations
under, this Agreement and the consummation of the Transactions, including all
fees and expenses of its Representatives. If this Agreement is terminated, the
obligation of each Party to pay its own expenses will be subject to any rights
of that Party arising from a Breach by the other Party. Purchaser shall pay all
sales or transfer Taxes incurred in connection with the Transactions and all
other fees and expenses relating to any applicable Governmental Authorizations.
Purchaser shall pay all fees and expenses for or relating to any Consents of
any Person or Governmental Entity required to, or advisable to procure in order
to, consummate the Transactions.

 

Section 5.2    Additional Documents and Further
Assurances; Cooperation.  Each of
Purchaser and Seller shall, at the request of the other Party, execute and
deliver such other instruments and do and perform such other acts and things
(including all action reasonably necessary to seek and obtain any and all
Consents of any Governmental Entity or Person required in connection with the
Transactions).

 

Section 5.3    Access to Information.  After the Closing, each of Seller and
Purchaser will provide reasonable access to each others’ books and records for
purposes related to this Agreement and the Transactions and the preparation of
Tax Returns and other filings with Governmental Entities. Within ninety (90)
days following the Closing Date, Purchaser shall remove all references to
Seller’s affiliates and any of its predecessors, their trade names and trade
dress from all of the Acquired Assets.

 

Section 5.4    Public Disclosure.  Unless otherwise required by Law, no public
disclosure (whether or not in response to any inquiry) of the existence of any
subject matter of, or the terms and conditions of, this Agreement shall be made
by any Party hereto unless approved by Purchaser and Seller prior to release
to; but, such approval shall not be unreasonably withheld, conditioned or
delayed. However, each of Purchaser and Seller shall be permitted to disclose
the existence of this Agreement in confidence to its customers, suppliers and
sales representatives with whom it has non-disclosure agreements that apply to
such disclosure (or the other Party otherwise agrees to such disclosure) and
for which there is a business reason for the disclosure.

 

Section 5.5    Employment Issues.  Immediately following the Closing, Purchaser
hereby agrees to offer employment to at least 80% of all of the employees of
Seller at the same salary which Seller pays to such employee immediately
preceding the Closing, and such salary is set forth in Section 5.5 of the
Seller Disclosure Schedule; provided however, that Purchaser shall offer
employment to Daniel Milburn pursuant to the Employment Agreement. Hired
employees will be eligible for benefit offerings under the Purchaser’s

 

23

 

benefit plans in
accordance with its provisions. Hired employees shall be given credit for
service with Seller or its affiliates for purposes of benefit plans and accrued
vacation to be provided by Purchaser.

 

Section 5.6    Restrictive Covenants.

 

(a)       Subject to Seller’s obligations under the
Master Services Agreement, for a period of three (3) years after the Closing
Date, Seller agrees that Seller will not, on Seller’s own account, or as an
employee, consultant, advisor, partner, co-venturer, owner, trustee, officer,
lender, director, member or stockholder of any other Person:

 

(i)        directly or indirectly, solicit, sell
to, divert, take away, transfer or interfere with any of the business, trade or
patronage of Purchaser with respect to Purchaser’s operation of the Business
after the Closing Date;

 

(ii)       directly or indirectly, solicit, sell to,
divert, take away, transfer or interfere with any of the customers of Purchaser
with respect to Purchaser’s operation of the Business; or

 

(iii)      directly or indirectly, for Seller or on
behalf of any other Person, induce or attempt to induce, in any manner
whatsoever, any present or future management, sales, key employee or other
employee of Purchaser to leave the employ of Purchaser and/or to seek or accept
employment with Seller or any such Person, nor shall Seller negotiate with any
such employee while he or she is in the employ of Purchaser with respect to
such person’s present or future employment.

 

Notwithstanding any other
covenant or provision of this Section 5.6, Seller may, solely for and on behalf
of itself and its affiliates and subsidiaries, provide similar services to
those provided by Purchaser through the operation of its business without being
deemed to violate any covenants or obligations pursuant to this Section 5.6. No
action taken by Seller pursuant to the Master Services Agreement (or otherwise
reasonably related to the services to be provided thereunder) shall be deemed a
Breach of this Section 5.6.

 

(b)       Subject to Seller’s obligations under the
Master Services Agreement, Seller agrees that for a period of three (3) years
after the Closing Date, Seller will not, on Seller’s own account, or as an
employee, consultant, advisor, partner, co-venturer, owner, trustee, officer,
lender, director, member or stockholder of any other Person, conduct, engage
in, render services for, be connected with, have any interest in or aid or
assist anyone else in any Competitive Business (as defined below) in the States
of Utah and Colorado; provided, however, that nothing contained herein shall
prevent Seller during the time indicated from owning stock in any corporation
having a class of equity securities actively traded on a national securities
exchange, or on the NASDAQ Stock Market or in the over-the-counter market
(provided that Seller shall not own, directly or indirectly, five percent (5%)
or more of the equity of any entity engaged in any Competitive Business). For
purposes hereof, the term “Competitive Business” means any business which is
both (1)

 

24

 

similar to, and (2)
competitive with the Business as conducted by Seller at any time prior to the
Closing Date.

 

(c)       Seller hereby acknowledges and agrees
that the provisions of Sections 5.6(a) and (b) are to prevent a Competitive
Business from gaining any advantage from Purchaser’s knowledge of the Business
of and other confidential information, and Purchaser’s relationships with
customers, suppliers and others, acquired in the course of Purchaser’s business
after the Closing Date.

 

(d)       Seller hereby acknowledges that the
consideration received by Seller specified above has been negotiated to include
consideration specifically for Seller’s full compliance with the terms and
conditions of Section 5.6.

 

(e)       Seller acknowledges and agrees that the
time period, scope and territorial area specified above are the fair,
appropriate and minimum reasonable time period, scope and territorial
restrictions necessary to protect Purchaser in the full use of the good will of
the business conducted by Purchaser. No waiver of any violation hereof shall be
implied by Purchaser’s forbearance or failure to take action in pursuance
hereof.

 

All covenants and
provisions of Section 5.6 constitute a series of separate covenants, and if any
particular portion of any such paragraphs be adjudicated invalid or
unenforceable, the same shall be deemed deleted without affecting the validity
or enforceability of other portions or provisions hereof, and such deletion shall
apply only with respect to the operation of said paragraphs in the particular
jurisdiction in which such adjudication is made. Further, to the extent that
any provision hereof is deemed unenforceable by virtue of its scope in terms of
territory, length of time, scope or otherwise, but may be made enforceable by
limitations thereon, Seller and Purchaser agree that such reductions or
limitations may be made so that the same shall, nevertheless, be enforceable to
the fullest extent permissible under the laws and public policies applied in
any jurisdiction in which enforcement is sought.

 

Section 5.7    Accounting. For a period not to
exceed three (3) months following the Closing, Seller shall assist and consult
with Purchaser in establishing Purchaser’s accounting systems for the Acquired
Assets. Seller shall not receive any consideration for its services under this
Section 5.7. Seller shall not be liable for any Losses incurred by Purchaser in
connection with the services provided by Seller under this Section 5.7 unless
such Losses are directly caused by the intentional misconduct or Seller.

 

ARTICLE VI 

INDEMNIFICATION; REMEDIES

 

Section 6.1    Indemnification by Seller.  Seller and Questar InfoComm, Inc. shall
jointly and severally defend and indemnify Purchaser and Purchaser’s
shareholders, officers, directors, successors and assigns and each of them
against, and hold it harmless from, any Losses arising from, relating to or
otherwise in respect of (a) Seller’s Breach or failure to perform any
agreement, covenant, term, condition or provision contained herein; (b) a

 

25

 

Breach by Seller of any
of its representations and warranties under Article III or (c) any Excluded
Liability. Except with regard to a Breach of Section 5.6, indemnification under
this Article VI shall be Purchaser’s sole and exclusive remedy for any Losses
arising from, relating to or otherwise in respect of this Agreement or the
Transactions.

 

Section 6.2    Indemnification by Purchaser.   Purchaser
shall indemnify Seller and Seller’s shareholders, officers, directors,
successors and assigns and each of them against, and hold it harmless from, any
Losses arising from, relating to or otherwise in respect of (a) Purchaser’s
Breach or failure to perform any agreement, covenant, term, condition or
provision contained herein or in any of the Leases; (b) a Breach by Purchaser
of any of its representations and warranties under Article IV; or (c) any
Assumed Liability. Except for the enforcement of its rights under the Secured
Subordinated Promissory Note, the Security Agreement and the Trust Deed,
indemnification under this Article VI shall be Seller’s sole and exclusive
remedy for any Losses arising from, relating to or otherwise in respect of this
Agreement or the Transactions.

 

Section 6.3    Time Limitations on Obligations.   Each
Party’s obligation to indemnify and hold harmless the other Party shall
terminate on May 31, 2007; provided, however, that each Party’s obligation to
indemnify and hold harmless the other Party pursuant to Section 6.8 shall
terminate upon the expiration of the Ground Lease; and further provided that a
Party’s obligation to indemnify and hold harmless the other Party shall not
terminate with respect to any item as to which the Party seeking
indemnification shall have, before such date previously made a claim by
delivering a valid Claim Notice pursuant to Section

6.4(a).

 

Section 6.4    Procedures.

 

(a)       In order for the Indemnified Party to be
entitled to any indemnification provided for under this Agreement in respect
of, arising out of or involving a third party (a “Third Party Claim”), the
Indemnified Party must notify the Indemnifying Party in writing of the Third
Party Claim (a “Claim Notice”), which must be accompanied by a copy of the
written notice of the Third Party Claimant asserting the Third Party Claim; but
the failure to give such notification promptly (so long as a valid Claim Notice
is given before the expiration of the applicable period) shall not affect the
Indemnified Party’s right to indemnification except to the extent the
Indemnifying Party demonstrates actual prejudice as a result of such failure.
Thereafter, the Indemnified Party shall deliver to the Indemnifying Party
copies of all other notices and documents (including court papers) received by
the Indemnified Party relating to the Third Party Claim.

 

(b)       If a Third Party Claim is made against an
Indemnified Party, the Indemnifying Party shall be entitled to participate in
the defense thereof and, if its so chooses, to assume the defense thereof at
its sole cost and expense, with counsel selected by the Indemnifying Party.
Should the Indemnifying Party so elect to assume the defense of a Third Party
Claim, the Indemnifying Party shall not be liable to the Indemnified Party for
any legal expenses incurred by the Indemnified Party in connection with the
defense thereof, except as provided below. If the Indemnifying Party assumes
such defense, the Indemnified

 

26

 

Party shall have the
right to participate in the defense thereof and to employ counsel, at its own
expense, separate from the counsel employed by the Indemnifying Party.
Additionally, the Indemnifying Party shall be responsible for the reasonable
fees and expenses of counsel incurred by the Indemnified Party as was
reasonably necessary to respond timely to legal process for any period after
the Claim Notice is given during which the Indemnifying Party has not assumed
the defense thereof, if and to the extent that the Indemnifying Party is
responsible to indemnify for such Third Party Claim. If the Indemnifying Party
does not assume the defense of a Third Party Claim within twenty (20) days
after the giving by the Indemnified Party to the Indemnifying Party of a valid
Claim Notice with respect to a Third Party Claim, the Indemnifying Party shall
be liable to the Indemnified Party for the reasonable fees and expenses of
counsel employed by the Indemnified Party if and to the extent that the
Indemnified Party is responsible to indemnify for such Third Party Claim. If
the Indemnifying Party chooses to defend any Third Party Claim, the Indemnified
Party shall reasonably cooperate in the defense thereof. Such cooperation shall
include the retention and (upon the Indemnifying Party’s request) the provision
to the Indemnifying Party of records and information which are relevant to such
Third Party Claim, and making employees available, at no cost, on a mutually
convenient basis to provide additional information, an explanation of any
material provided and to act as a witness or respond to legal process.

 

(c)       In the event that the Indemnifying Party
shall exercise its right to undertake control of the defense of any such legal
proceedings, such Indemnifying Party may only compromise or settle such legal
proceeding on behalf of and for the account of the Indemnified Party after it
obtains the prior written consent of the Indemnified Party; provided, however,
that if the Indemnifying Party shall receive an offer of a settlement or compromise
from the other parties in the applicable legal proceedings at a particular
monetary amount, or obtain a commitment from such parties that they would
accept a compromise or settlement at such monetary amount if offered, and such
settlement or compromise requires only the payment of such amount, the granting
of an appropriate release or similar accommodation, and no other relief, and
there is (i) no finding or admission of any violation of any Laws or any
violation of the rights of any Person and no effect on any other claims that
may be made against the Indemnified Party; and that (ii) settlement of such
claim is not, in the good faith judgment of the Indemnified Party, likely to
establish a precedential custom or practice adverse to the continuing business
interests of the Indemnified Party and the Indemnified Party refuses to consent
thereto and elects to continue the legal proceedings, then the Losses of the
Indemnified Party which are the subject of the applicable legal proceedings to
which the settlement or compromise relates shall be deemed to be limited to
that amount of Losses which the Indemnified Party would have had if such
compromise or settlement had been effected. In the event that the Indemnifying
Party does not exercise its option to assume control of any such action or
proceeding, then the Indemnifying Party shall nevertheless be obliged to
indemnify the Indemnified Party pursuant to the provisions hereof; and (iii)
any claim for indemnification with respect to any matter not related to a Third
Party Claim may be asserted by Indemnification Notice. The claim specified in
such notice shall be deemed valid and the Indemnified Party shall be entitled
to indemnification hereunder on account of such claim

 

27

 

unless within twenty (20)
Business Days of the Indemnifying Party’s receipt of the Indemnification
Notice, the Indemnifying Party gives notice to the Indemnified Party that it
disputes the validity of such claim.

 

(d)       Any and all amounts due for indemnity
hereunder shall be promptly paid, in lawful money of the United States of
America.

 

(e)       Upon notice to Seller specifying in
reasonable detail the basis for such set-off, Purchaser may set off any amount
to which it may be entitled under Article 6 against amounts otherwise payable
under the Secured Subordinated Promissory Note; provided, however, if Seller
disputes any such Losses, Purchaser shall make any disputed payments into
escrow as a condition to maintaining any such claim. The exercise of such right
of set-off by Purchaser in good faith, whether or not ultimately determined to
be justified, will not constitute an event of default under the Secured
Subordinated Promissory Note so long as any disputed amounts are first paid
into an escrow account maintained by an unaffiliated escrow agent reasonably
acceptable to Seller. Neither the exercise of, nor the failure to exercise,
such right of set-off will constitute an election of remedies or limit
Purchaser in any manner in the enforcement of any other rights and remedies
that may be available to it. Any interest earned on any amount held in escrow
shall be paid pro rata in accordance with the resolution of the applicable
dispute.

 

Section 6.5    Dollar Limitation on Seller’s
Indemnification Obligations. Except for any claims by Purchaser for
indemnification under Section 6.8, Purchaser shall not be entitled to recover
any amount for indemnification claims under this Agreement unless and until the
amount which Purchaser and its affiliates are entitled to recover in respect of
such claims exceeds, individually, $1,000 (prior to the incurrence of any other
legal or other professional fees), and in the aggregate, US $200,000.00 (the “Deductible”),
in which event (subject to clause (b) below) the entire amount which Purchaser
is entitled to recover in respect of such claims less the Deductible shall be
payable. Except for any claims by Purchaser for indemnification under Section
6.8, the maximum amount recoverable by Purchaser and its affiliates for indemnification
claims or Losses under this Agreement shall in the aggregate be equal to US
$4,075,000.

 

Section 6.6    No Consequential Damages; Additional
Limitations.

 

(a)       All amounts payable by Seller in
indemnification of Purchaser shall be considered a reduction to the Purchase
Price. In no event shall Seller be liable for loss of profits, loss in
purchaser value or consequential damages by reason of a breach of any of its
representations, warranties or covenants in this Agreement; provided, however,
in the event of a claim by either Party hereto against the other Party for
indemnification under Section 6.8 solely due to a claim against the Indemnified
Party by an unrelated third party (other than a customer of Purchaser who
enters into a customer agreement with Purchaser subsequent to the date hereof),
the Indemnifying Party shall be liable to the Indemnified Party for any damages
actually incurred by such third party for loss of profits or consequential
damages.

 

28

 

(b)       The amount of any claim for
indemnification shall be reduced by any Tax, insurance or other benefits that
the Indemnified Party or its affiliates receive in respect of or as a result of
such claim or the facts or circumstances relating thereto. If any indemnifiable
Losses for which indemnification is provided hereunder are subsequently reduced
by any Tax benefit, insurance payment or other recovery from a third party, the
amount of such reduction shall be remitted within 5 Business Days to the Indemnifying
Party.

 

(c)       The Parties hereto shall cooperate to
resolve any claim or liability, including by making reasonable best efforts to
mitigate or resolve any such claim or liability.

 

Section 6.7    Subrogation. Subject to the
Indemnified Party’s right to recover the Deductible, upon making any payment to
Indemnified Party for an indemnification claim pursuant to this Agreement, the
Indemnifying Party shall be subrogated, to the extent of such payment, to any
rights which the Indemnified Party may have against any other parties with
respect to the subject matter underlying such indemnification claim.

 

Section 6.8    Additional Environmental Covenant and
Indemnity.

 

(a)       Purchaser shall have no obligation, duty,
or liability for the environmental situation at the West Data Center as
described in Section 3.7 to Seller’s Disclosure Schedules (“Pre-Existing
Environmental Condition”), except to the extent that (i) Purchaser’s act(s)
including, without limitation, excavation, construction and digging results,
directly or indirectly, in Losses relating to the Pre-Existing Environmental
Condition or (ii) Purchaser fails to act in a commercially reasonable manner
consistent with a prudent data center manager that is unaware of the existence
of the Pre-Existing Environmental Condition and such failure to act, directly
or indirectly, results in Losses relating to the Pre-Existing Environmental
Condition. Purchaser shall indemnify and hold Seller, its affiliates and each
of their respective directors, officers, employees, agents, successors and
assigns (collectively “Seller Indemnified Parties”) harmless from any Losses
resulting, directly or indirectly, from 6(a)(i) or 6(a)(ii) above. Purchaser
shall also indemnify and hold the Seller Indemnified Parties harmless from any,
direct or indirect, Losses resulting from a violation or enforcement of any
Environmental Laws resulting from any act or omission of Purchaser (or any of
its affiliates, agents, employees, invitees or other similar Persons) following
Closing.

 

(b)       Except to the extent of Purchaser’s
indemnification set forth in Section 6.8(a), Seller and Questar InfoComm, Inc.
shall, jointly and severally, indemnify and hold harmless Purchaser, its
affiliates and each of their respective directors, officers, employees, agents,
successors and assigns from and against any and all direct and indirect Losses
which Purchaser may incur, directly or indirectly, arising out of, related to,
or resulting from: (i) the use, generation, manufacture, storage, treatment,
release, threatened release, discharge, disposal, transportation or presence of
any Hazardous Materials which are found in, on, under or about (a) the property
which is the subject of the Ground Lease or (b) the Building as of or after the
Closing; (ii) a violation or enforcement of any

 

29

 

Environmental Laws
resulting from an act or omission of Seller prior to Closing; or (iii) the
Pre-Existing Environmental Condition and the Remdial Action Plan. Except to the
extent of Purchaser’s indemnification set forth in Section 6.8(a), such
indemnity by Seller and Questar InfoComm shall include, without limitation, the
Losses of any repair, cleanup or detoxification of the Property which is
required by any Governmental Entity or is otherwise necessary to render the
Property in compliance with all Environmental Laws and the Remedial Action
Plan.

 

(c)       Questar InfoComm, Inc., the immediate
parent company of Seller, has agreed to indemnify and hold harmless Purchaser
for Losses incurred by Purchaser in accordance with paragraph 6.8 and Quest
InfoComm hereby acknowledges that it does so in order to induce Purchaser to
enter into this Agreement in view of Pre-Existing Environmental Condition and
the Remedial Action Plan. Purchaser has entered into this Agreement in reliance
thereon and, accordingly, Questar InfoComm hereby acknowledges that it has
received good, valid and sufficient consideration for its indemnification
obligations under this Article VI.

 

ARTICLE VII

MISCELLANEOUS

 

Section 7.1    Amendments. This Agreement may be
amended, modified and supplemented in any and all respects only by a written
agreement signed by each of the Parties at any time after the Closing Date with
respect to any of the terms contained in this Agreement.

 

Section 7.2    Notices. Unless otherwise expressly
provided herein, all notices, requests, demands, instructions, documents and
other communications to be given hereunder by either Party to the other shall
be in writing, shall be sent to the address/fax number set forth below
(provided that any Party may at any time change its address for notice or other
such information by giving written notice thereof in accordance with this
Section), and shall be deemed to be duly given upon the earliest of (a) hand
delivery, (b) the first Business Day after sending by reputable overnight
delivery service for next-day delivery, (c) the third Business Day after
sending by first class United States mail, postage prepaid, (d) the time of
successful facsimile transmission (or in the event the time of receipt of the
fax in the city where the fax is received is not during regular business hours
on a Business Day, then at the customary hour for the opening of business on
the next Business Day), or (e) the date actually received by the other Party:

 

if to Seller, to:

 

Consonus, Inc.

180 East 100th
Street

Salt Lake City, UT
84145

Attention:
President and Chief Executive Officer

Telecopy No.:
(801) 282-3653

 

30

 

with a copy (which
shall not constitute notice) to:

 

Holme Roberts
& Owen LLP

299 South Main
Street, Suite 1800

Salt Lake City,
Utah 84111

Attention: Stuart
A. Fredman

Telecopy No.:
(801) 521-9639

 

and

 

if to Purchaser,
to:

 

Consonus
Acquisition Corp.

245 Park Ave, 39th
Floor

New York, New York
10167

Attention: Nana
Baffour, Managing Principal

Telecopy No.:
(212) 792-4001

 

with a copy (which
shall not constitute notice) to:

 

Ettelman &
Hochheiser, P.C.

100 Quentin
Roosevelt Boulevard, Suite 401

Garden City, New
York 11530

Attention: Raymond
J. Averna, Esq.

Telecopy No.:
(516) 227-6307

 

Section 7.3    Counterparts. This Agreement may be
executed in any number of counterparts and by different Parties on separate
counterparts, each of which, when executed and delivered, shall be deemed to be
an original, and all of which, when taken together, shall constitute but one
and the same Agreement. Delivery of an executed counterpart of this Agreement
by telefacsimile shall be equally as effective as delivery of an original
executed counterpart of this Agreement. Any Party delivering an executed
counterpart of this Agreement by telefacsimile also shall deliver an original
executed counterpart of this Agreement but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, and binding
effect of this Agreement.

 

Section 7.4    Entire Agreement.  This Agreement and the Related Agreements,
together with all exhibits and schedules hereto, constitutes the entire
agreement among the Parties pertaining to the subject matter hereof and
completely supersedes all prior or contemporaneous agreements, understandings,
arrangements, commitments, negotiations and discussions of the Parties, whether
oral or written (all of which shall have no substantive significance or
evidentiary effect). Each Party acknowledges, represents and warrants that it
has not relied on any representation, agreement, understanding, arrangement or
commitment which has not been expressly set forth in this Agreement. Each Party
acknowledges, represents and warrants that this Agreement is fully integrated
and not in need of parol evidence in order to reflect the intentions of the
Parties. The Parties specifically intend that

 

31

 

the literal words of this
Agreement shall, alone, conclusively determine all questions concerning the
Parties’ intent.

 

Section 7.5    No Third-Party Beneficiaries.  No person not a party to this Agreement shall
have or acquire any rights by reason of this Agreement nor shall any Party
hereto have any obligation or liability whatsoever to any such person by reason
of this Agreement, except as otherwise expressly provided for herein.

 

Section 7.6    Severability.  Any term or provision of this Agreement that
is held by a court of competent jurisdiction or other authority to be invalid,
void or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions or the
validity or enforceability of the invalid, void or unenforceable term or
provision in any other situation or in any other jurisdiction. If the final
judgment of a court of competent jurisdiction or other authority declares that
any term or provision of this Agreement is invalid, void or unenforceable, the
Parties agree that the court making such determination shall have the power to
and shall, subject to the discretion of such court, reduce the scope, duration,
area or applicability of the term or provision, to delete specific words or
phrases, or to replace any invalid, void or unenforceable term or provision
with a term or provision that is valid and enforceable and that comes closest
to expressing the intention of the invalid or unenforceable term or provision.

 

Section 7.7    Choice of Law.  This Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of Utah, as
applicable to contracts executed and delivered in Utah between Utah residents
and which are to be performed wholly within Utah, without regard to principles
of conflicts of law.

 

Section 7.8    Enforcement; Venue.  The Parties agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached.
The Parties irrevocably agree and consent to the jurisdiction of the courts of
the States of Utah and the federal court of the United States sitting in Utah
for the adjudication of any matters arising under or in connection with this
Agreement.

 

Section 7.9    Waivers.  No waiver of any provision of this Agreement
shall be binding unless and until set forth expressly in writing and signed by
the waiving Party. The waiver by any Party hereto of a breach of any provision
of this Agreement shall not operate or be construed as a waiver of any
preceding or succeeding breach of the same or any other term or provision, or a
waiver of any contemporaneous breach of any other term or provision, or a
continuing waiver of the same or any other term or provision. No failure or
delay by a Party in exercising any right, power, or privilege hereunder or
other conduct by a Party shall operate as a waiver thereof, in the particular
case or in any past or future case, and no single or partial exercise thereof
shall preclude the full exercise or further exercise of any right, power, or
privilege. No action taken pursuant to this Agreement shall be deemed to
constitute a waiver by the Party taking such action of compliance with any
representations, warranties, covenants or agreements contained herein.

 

32

 

Section 7.10   No Assignment.   Neither this Agreement not any of the rights,
interests or obligations under this Agreement shall be assigned by either of
the Parties to this Agreement (whether by operation of law or otherwise)
without the prior written content of the other Party to this Agreement. Subject
to the preceding sentence, this Agreement will be binding upon, inure to the
benefit of and be enforceable by the Parties and their respective successors
and assigns.

 

Section 7.11   Remediation.   Seller’s
remediation obligations, solely with respect to Section 3.7 or Section 6.8, may
be resolved with the Lowest Cost Response. The Lowest Cost Response applies
only to Seller’s remediation obligations with respect to Section 3.7 and
Section 6.8.

 

[Remainder of page intentionally left
blank; succeeding page is a signature page.]

 

33

 

IN WITNESS WHEREOF,
Purchaser and Seller have executed, or caused to be executed by their duly
authorized representatives, this Agreement as of the date first above written.

 

	
   

  	
   

  	
  CONSONUS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Alan K. Allred

  	
   

  
	
   

  	
   

  	
  Name: Alan K. Allred

  
	
   

  	
   

  	
  Title: Chairman of the Board

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONSONUS ACQUISITION CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Nana Baffour

  	
   

  
	
   

  	
   

  	
  Name: Nana Baffour

  
	
   

  	
   

  	
  Title: Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  QUESTAR INFOCOMM, INC.

  
	
   

  	
   

  	
  (signing for purposes of Article VI only)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Alan K. Allred

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Signature page to
Asset Purchase Agreement

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