Document:

Exhibit 10.17

FIRST
AMENDMENT TO EMPLOYMENT AGREEMENT

THIS
FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”) is made as of this 22nd day of
January, 2007 by and among DANIEL MILBURN, a resident of the state of Utah (“Daniel”),
CONSONUS ACQUISITION CORP., a Delaware corporation  (“Consonus”), and CONSONUS TECHNOLOGIES,
INC., a Delaware corporation (“Parent”).

W I T N E S S E T H :

WHEREAS, Daniel and
Consonus entered into an Employment Agreement dated May 31, 2005 (the
“Agreement”); and

WHEREAS, Parent,
Consonus, Strategic Technologies, Inc., a North Carolina corporation (“STI”),
CAC Merger Sub, Inc. a Delaware corporation and wholly-owned subsidiary of
Parent (“CAC Merger Sub”), and STI Merger Sub, Inc., a North Carolina
corporation and wholly-owned subsidiary of Parent (“STI Merger Sub”) entered
into a Merger Agreement, dated as of October 18, 2006 (the “Merger Agreement”);

WHEREAS, pursuant to the
Merger Agreement, CAC Merger Sub will merge with and into Consonus and the
separate corporate existence of CAC Merger Sub will thereupon cease and
Consonus will continue as the surviving corporation and as a wholly owned
subsidiary of Parent and STI Merger Sub will merge with and into STI and the
separate corporate existence of STI Merger Sub will thereupon cease and STI
will continue as the surviving corporation and as a wholly owned subsidiary of
Parent (the “Mergers”);

WHEREAS, Parent desires
to assume the Agreement, and Parent, Consonus and Daniel desire to amend the
Agreement as provided below.

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Parent, Consonus and Daniel hereby agree as follows:

1.         Section 1 (Employment)
shall be amended by deleting such Section in its entirety and replacing such
Section with the following:

“1)      Employment.  Parent hereby agrees to employ Daniel and
Daniel does hereby agreed to be employed as Senior Vice President and Chief
Operating Officer of Hosting and Infrastructure Services of Parent, all upon
the terms and subject to the conditions specified herein.  In his capacity as Senior Vice President and
Chief Operating Officer of Hosting and Infrastructure Services, Daniel shall
report to the President and Chief Executive Officer (“CEO”) of Parent.  Daniel acknowledges and agrees that President
and CEO and the Board of Directors of Parent shall have the unilateral right to
modify Daniel’s responsibilities and duties from time to time provided that the
modified responsibilities and duties are consistent with his role as Senior
Vice President and Chief 

 

 

Operating Officer of Hosting and Infrastructure Services.    Designation of title and responsibilities
in this Agreement shall not preclude the future appointment of Daniel to an
office having greater responsibilities with appropriate title (i.e. Executive
Vice President, COO or CEO) at the discretion of the Chief Executive Officer or
the Board of Directors.  In addition,
Daniel shall carry out such other responsibilities and duties as may be
assigned to him from time to time by the Chief Executive Officer of the Parent
which are consistent with Daniel’s position as Senior Vice President and Chief
Operating Officer of Hosting and Infrastructure Services.  Daniel shall be subject to the direction of
the Chief Executive Officer in the performance of his duties hereunder.  Unless Daniel otherwise consents, the
principle place of Daniel’s employment shall be within a 50 mile radius of Salt
Lake City, UT.

Daniel hereby agrees and represents that his employment, and the performance
of his duties hereunder, do not violate any agreement or legal obligation
existing between Daniel and any other person or entity.”

2.         Section 4(a) (Compensation - Base Salary) shall be amended
by deleting such Section in its entirety and replacing such Section with the
following:

“a)      Base Salary.  From the Effective Date (as such term is
defined in the Merger Agreement) of the Mergers to the date that the
indebtedness of STI owing to General Electric pursuant to a loan agreement with
General Electric (the “GE Debt”) is paid off, or an Initial Public Offering
(IPO) occurs, whichever is earlier, Daniel will be paid by Consonus a Base
Salary at a rate of One Hundred Forty Thousand ($140,000) Dollars per year; on
and after the date that the GE Debt is paid off, or the IPO occurs, whichever
is earlier, until the termination of this Agreement, Daniel will be paid a Base
Salary of One Hundred Seventy-Five Thousand ($175,000) Dollars per year.  Such Base Salary will be paid by Consonus
until the repayment of the GE Debt  or
the IPO, whichever is earlier, and thereafter by Parent and/or Consonus and
shall be payable in bi-weekly installments, or at such other intervals which
Consonus or Parent, as applicable, may adopt for payment of its employees and,
at the discretion of Consonus or Parent, as applicable, may be reviewed for
increase, from time to time taking into consideration the market, the fiscal
well-being of Consonus or the Parent, as applicable, and other equitable
factors.  Consonus or Parent, as applicable,
shall withhold from the Base Salary all sums required by federal, state and
local laws, including, but not limited to, taxes, social security, and all
other appropriate sums together with any sums that Consonus or Parent, as
applicable, and Daniel may agree upon.”

 3.        The
third and fourth paragraphs of Section 4(b) (Participation in Benefit Plans)
shall be amended by deleting such paragraphs in its entirety and replacing such
paragraphs with the following:

            “From
the Effective Date of the Mergers until the GE Debt is paid off, Profit Sharing
and bonuses, if any, will be subject to Consonus achieving certain operating
target levels to be mutually agreed upon in writing.  During the first twelve months of this
Agreement, Daniel may be eligible to receive an incentive bonus not to exceed
30% of his Base Salary (the “Incentive Bonus”) provided certain operating
target levels are achieved as mutually agreed by Daniel, the CEO and the Board
of Directors.  Upon reaching such
agreement, such operating target levels shall be reduced to writing, sighed by
the parties and attached to this Agreement as Exhibit C.  

Daniel shall also be
entitled to receive an additional incentive (“Additional Incentive”)
compensation payment for exceeding his the operating target levels as set forth
on Exhibit C.  Daniel’s
entitlement to the Incentive Bonus and Additional Incentive will be determined
by Consonus pursuant to this Agreement and paid to Daniel during the first
quarter of each new calendar year beginning January 1st, 2006 on a
pro rata basis from the end of the prior year. 
Further, Daniel’s eligibility to receive the unvested portion of a
previously awarded 3.5% common equity interest in Consonus shall terminate and
be superseded and replaced by a new equity interest set forth in the Deferred
Stock Agreement attached hereto as Exhibit A.”

Following the
repayment of the GE Debt, the CEO of Parent, the Chairman of the Board of
Parent and Parent’s Compensation Committee shall determine quarterly and annual
goals for Daniel’s Incentive Compensation and Additional Incentive based upon
the business plan of Parent and/or Consonus. 
The Incentive Compensation and Additional Incentive following the
repayment of the GE Debt will be based upon quarterly and annual goals that will
include, without limitation, a quantitative measure of Economic Value Added
(“EVA”) and qualitative measures.  EVA
will be comprised of such concepts as EBITDA, net operating profit after tax,
revenues, utilization, growth and profitability in the hosting business, growth
of recurring revenue business of the hosting business, performance of the
Parent’s stock price in the event that the Parent goes public, and EBITDA
margins improvements, amongst others, and adjusted for such concepts as
research and development expenses and cost of capital.  Consonus or Parent, as applicable, shall
withhold from the Incentive Compensation and Additional Incentive all sums
required by federal, state and local laws, including, but not limited to,
taxes, social security, and all other appropriate sums together with any sums
that Daniel may agree upon.

During the term of this Agreement, subject to the terms of the deferred
stock award set forth in the award agreement attached as Exhibit B,
Daniel shall be eligible to receive 0.75% of the fully diluted equity interest
in Parent (the “Equity Award”) determined as of the Effective Date after giving
effect to the transactions contemplated by the Merger Agreement, including the
issuance of securities thereunder.”

 

4.         Except as set forth in
this Amendment above, all references to “Consonus” in the Agreement shall be
deleted and replaced with “Parent and/or Consonus, as applicable”.

 

5.         Schedule A shall be
amended by deleting such Schedule in its entirety.

 

6.         Except as modified herein, all of the terms and conditions
of the Agreement remain unchanged and in full force and effect.

7.         This Amendment is an integral part of the Agreement.  Unless otherwise defined herein, any
capitalized term used in this Amendment shall have the meaning given to such
term in the Agreement.  This Amendment
may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall be deemed to be one and the same
instrument.

[Remainder of page
intentionally left blank]

 

 

IN WITNESS WHEREOF, the
undersigned have executed this First Amendment to Employment Agreement
effective the day and year first above written.

 

 

	
   

  	
  By 

  	
  /s/ Daniel Milburn

  
	
   

  	
   

  	
  Daniel Milburn

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONSONUS ACQUISITION
  CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By 

  	
  /s/Nana Baffour

  
	
   

  	
   

  	
  Name

  	
  Nana Baffour

  
	
   

  	
   

  	
  Title

  	
   Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONSONUS TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By 

  	
  /s/Nana Baffour

  
	
   

  	
   

  	
  Name

  	
  Nana Baffou

  
	
   

  	
   

  	
  Title

  	
  Chairman

  

 

 

 

 

 

Exhibit A

 

Deferred Stock
Agreement

 

 

 

Exhibit B

 

Equity Award

 

 

 

 

	
  

  	
  Knox Lawrence International,
  LLC

  245 Park Avenue | 39th Floor

  New York, New York 10167

  Tel 212 672-1784

  Fax 212 792-4001

  

EMPLOYMENT
AGREEMENT

AGREEMENT,
made this 31st day of May 2005, by and between, Consonus Acquisition Corp.
(“Consonus”) a Delaware corporation, having offices at 245 Park Avenue, 39th
Floor, New York, New York 10167 and Daniel Milburn, an individual
residing at 2214 South 1800 East, Salt Lake City, UT, 84106 (“Daniel”).

W I T N E
S S E T H:

WHEREAS,
Consonus, Inc. was engaged in the business of owning and operation of computer
data centers;

WHEREAS,
Consonus is now engaged in the business of owning and operating computer data
centers;

WHEREAS,
Daniel had been formally employed by Consonus, Inc. for approximately [ 4 ]
years and Daniel now desires to be employed by Consonus;

WHEREAS,
Consonus considers Daniel’s experience, knowledge and qualifications to be
unique and valuable to Consonus; and

WHEREAS,
Consonus is willing to employ Daniel subject to and in accordance with the
terms and conditions contained herein.

NOW,
THEREFORE, in consideration of the mutual covenants and
agreements herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1) Employment.
Consonus does hereby agree to continue to employ Daniel and Daniel does hereby
agree to continue employment as Chief Operating Officer of Consonus, all upon
the terms and subject to the conditions specified herein. In his capacity as
Chief Operating Officer Daniel shall carry  out
the responsibilities and duties specified on Schedule A attached hereto
and incorporated by reference herein. Daniel acknowledges and agrees that
Consonus shall have the unilateral right to modify Daniel’s responsibilities
and duties specified on Schedule A from time to time provided that the
modified responsibilities and duties are consistent with his role as Chief
Operating Officer. In addition, Daniel shall carry out such other
responsibilities and duties as may be assigned to him from time to time by the shareholders
of Consonus which are consistent with Daniel’s position as Chief Operating
Officer. Daniel shall be subject to the direction of the shareholders of
Consonus in the performance of his duties hereunder. Unless Daniel otherwise
consents, the principle place of Daniel’s employment shall be within a 50 mile
radius of Salt Lake City, UT.

Daniel hereby agrees and represents that his
employment, and the performance of his duties hereunder, do not violate any
agreement or legal obligation existing between Daniel and any other person or
entity.

2) Term.

a) Subject to the provisions for earlier termination
contained herein, the term of this Agreement shall be for a period of two (2)
years, commencing on the date hereof and ending on 5/31/07. This Agreement
shall automatically renew for successive periods of one (1) year each,
commencing immediately after the expiration of the initial term or any
successive one (1) year term, unless either party gives written notice to the
other of it or his intention not to renew at least ninety (90) days prior to
the expiration of the initial term or any then applicable renewal term hereof.
At the end of the term within which such notice of non-renewal is provided,
Daniel’s employment with Consonus shall automatically terminate, and shall be
deemed to have terminated. However, in such event, Daniel may continue to be
employed by Consonus, at Consonus’ sole option, on an at will basis. Nothing
contained herein shall affect Daniel’s right to receive severance consistent
with Consonus’ current plan for termination for any reason, other than the
reasons set forth in paragraph 5.

b) If Daniel gives a notice of non-renewal pursuant to
paragraph 2(a), Consonus shall have the right to relieve Daniel, in whole or
part, of his duties under this Agreement without reduction in compensation
through the expiration of this Agreement.

3) Time.
Daniel shall devote his full business time, attention and best efforts to the
performance of his duties hereunder and shall perform such duties ably,
faithfully and diligently, During the term hereof and any renewal term
thereafter, Daniel shall not be engaged in any other business activity or
venture, whether or not such business activity or venture is pursued for gain,
profit or other pecuniary advantage, which is competitive with the business of
Consonus, or

 

2

which will affect, impede, prohibit, or restrict in any manner or
degree his ability to perform his obligations under the terms of this
Agreement. The devotion of reasonable periods of time by Daniel for personal
purposes, outside business activities, or charitable activities, shall not be
deemed a breach of this Agreement, provided that such purposes or activities do
not materially interfere with the services required to be rendered to or on
behalf of Consonus.

4) Compensation.

a) Base Salary.
Consonus shall pay to Daniel a base salary (the “Base Salary”) at a rate of One
hundred forty thousand ($140,000) Dollars per year, payable in bi-weekly
installments, or at such other intervals which Consonus may adopt for payment
of its employees and, at the discretion of Consonus, may be reviewed for
increase, from time to time, taking into consideration the market, the fiscal
well-being of the Company and other equitable factors. Consonus shall withhold
from the Base Salary all sums required by federal, state and local laws,
including, but not limited to, taxes, social security, and all other
appropriate sums together with any sums that Consonus and Daniel may agree
upon.

b) Participation
in Benefit Plans. Daniel shall be entitled to participate in, or
receive benefits under any health and accident plan, 401k savings plan or other
retirement plan or any other benefit plan or arrangement that Consonus may
offer to its employees, from time to time. Daniel’s participation shall be
subject to the terms and conditions of such plans and arrangements, as same may
be amended from time to time.

Daniel shall also be entitled to participate in any
pension plan, profit sharing plan, stock option plan, stock purchase plan or
arrangement, health and accident plan, or any other employee benefit plan or
arrangement (if any) made available in the future by Consonus to its key
employees, as determined by Consonus.

Profit sharing and bonuses, if any, will be subject to
Consonus achieving certain operating target levels to be mutually agreed upon
in writing. During the first twelve months of this Agreement, Daniel may be
eligible to receive an incentive compensation not to exceed 20% of his base
salary (the “Incentive Bonus”) and provided certain mutually agreed operating
target levels are achieved. Daniel shall also be entitled to receive a one-time
compensation payment in an amount equal to a certain percentage (determined by
Consonus, but not less than 15%) multiplied by an amount equal to the excess of
the EBITDA over the operating target levels (the “Profit Sharing Payment”).
Daniel’s entitlement to the Incentive Bonus and the Profit Sharing Payment will
be determined by Consonus pursuant to this Agreement and paid to Daniel during
the first quarter of each new calendar year beginning January 1st,
2006 on a pro rata basis from the end of the prior year. During the term of
this agreement, and provided that Daniel has not defaulted in the performance
of any of his obligations under the terms of this Agreement, Daniel shall also
be eligible to receive a 3.5% common equity interest in Consonus. Daniel shall
be eligible to receive such equity interest in the following manner:

 

3

 

(i)                        0.75% up
on the first year anniversary of this Agreement,

(ii)                     1.0% upon the
second year anniversary of this Agreement, and

(iii)                  1.75% upon the
third year anniversary of this Agreement.

Common equity in Consonus shall fully vest in Daniel
at the rate and as set forth on the above schedule and the entire 3.5% of
common equity shall vest upon an event of dissolution or Change of Control.

Daniel may be eligible, based on a separate written
agreement to be entered into upon the third year anniversary of this Agreement,
to additional common equity interest as may be mutually agreed in writing at
that time.

c) Vacation Days
and Sick Days. Daniel shall be entitled, annually, to 20 paid
vacation days, unless Consonus’ then effective policy would provide a greater
number to which Daniel would be entitled, 4 floating holidays, other nationally
recognized holidays and sick days in an amount that is consistent with
Consonus’s then applicable policy for its key employees, as same may be amended
from time to time. If this Agreement should terminate, for any reason, prior to
the end of a twelve month period, vacation days shall be prorated based on the
number of days during the year that this Agreement was in effect.

d) Out of Pocket
Expenses. Consonus will reimburse Daniel for reasonable
necessary and customary expenses incurred by him in the performance of his
duties hereunder, provided Daniel promptly accounts therefor in accordance with
Consonus’s then applicable policies, as same may be amended from time to time.
Such reimbursement shall be paid by Consonus to Daniel within ten (10) days
after the end of the calendar month during which Daniel incurs such expenses
and Consonus receives written substantiation thereof as required by Consonus’s
then applicable policy.

5) Termination

a) Notwithstanding anything to the contrary contained
herein, upon the occurrence of a Termination Event, at Consonus’s election,
this Agreement and Daniel’s employment with Consonus shall immediately
terminate and be deemed to have terminated. Consonus shall make its election to
terminate this Agreement and Daniel’s employment by giving written notice of
its intention to do so to Daniel. For purposes of this Agreement, “Termination
Event” means the occurrence of any of the following events:

i)                            the
death of Daniel; or

ii)                         the
Incapacity of Daniel. For purposes of this Agreement, the term “Incapacity”
means the prevention of Daniel from substantially

 

4

performing his duties by reason of illness, physical
or mental disability or other incapacity, for a continuous period of sixty (60)
consecutive days. A continuous period of Incapacity shall not be deemed
interrupted until Daniel returns to substantially full time employment for a
period of at least ten (10) consecutive business days; or

iii)                      the
dissolution, termination of business, or Change of Control of Consonus.

b) Notwithstanding anything to the contrary contained
herein, this Agreement and Daniel’s employment by Consonus may, at Consonus’s
election, be terminated for Cause. Such termination shall be effective upon
Consonus giving Daniel written notice of its intention to terminate. For
purposes of this Agreement, “Cause” shall mean the occurrence of any of the
following events:

i) Daniel’s failure to perform his duties in a
competent or professional manner, or his neglect of the business of Consonus,
or, other than due to a good faith and reasonable difference of opinion, his
refusal to attend to, the business of Consonus, all as determined by Consonus
in its sole discretion and Daniel does not remedy such breach within twenty
(20) days after written notice by Consonus to Daniel delineating such failure;

ii) theft, embezzlement or fraud by Daniel or Daniel’s
involvement in any other scheme or conspiracy pursuant to which Consonus loses
assets to Daniel or others calculated by Daniel to receive such assets;

iii) incapacity on the job by reason of the use or
abuse of alcohol or drugs;

iv) commission of a felony or a crime involving moral
turpitude;

v) gross insubordination;

vi) unexplained and continuous absences from work;

vii) breach by Daniel of any of the material
provisions of this Agreement on his part to be kept, maintained or performed
and Daniel does not remedy such breach within twenty (20) days after written
notice of such breach by Consonus to Daniel;

 

5

viii) willful acts of malfeasance or misfeasance
prejudicial to Consonus; or

c) After the termination of this Agreement and
Daniel’s employment by Consonus in accordance with paragraph 5(a) on account of
the occurrence of a  Termination
Event other than that contained in 5 (a) (iii), Daniel shall not be
entitled to receive any further compensation, rights or benefits hereunder, and
same shall immediately terminate, except Daniel’s Base Salary, vested common
equity, and prorated bonus earned and accrued through the date of termination.

In the case of termination under the events set forth
in 5 (a) (iii), Consonus shall pay Daniel his then current monthly base salary
through the end of the termination date set forth in this Agreement, in
addition to any vested common equity which, in the event of dissolution, shall
be paid in cash equal to the value of the common equity immediately prior to
dissolution, termination of business, or Change of Control as hereafter
defined. At the option of Daniel, payments resulting from termination under
this subparagraph may be paid in a lump sum within 14 days of the date of
termination or may be paid on a deferred basis as compensation on Consonus’
normal pay cycles for other employees, or any combination thereof. Payment by
Consonus of all amounts due to Daniel under this Agreement shall be in full satisfaction
of all Consonus’ obligations to Daniel under this Agreement, and Consonus may
condition payment of such amounts upon Daniel’s written release of Consonus
from any further obligations under this Agreement.

After receiving the payments provided in this
subparagraph (c), neither Daniel or his estate, as the case may be, shall have
any further rights under this Agreement.

(d) Daniel hereby acknowledges that after the
termination of Daniel’s employment for Cause pursuant to paragraph 5(b), Daniel
shall not be entitled to receive any severance or other compensation, rights or
benefits of any kind or nature whatsoever from Consonus as same shall
immediately terminate, except Daniel shall receive only Base Salary earned and
accrued though the date of termination.

(e) Change of
Control. In the event of a Change of Control of Consonus, any
common equity interest (as described in paragraph 4(b) granted to which Daniel
may be entitled to under this Agreement, shall become fully vested and be
payable, pursuant to the terms of paragraph 5 (c), to Daniel as of the
effective date of the Change of Control. “Change of Control” shall be deemed to
have occurred if at any time

i.)                         Any
person, group, or entity is or becomes an owner, directly or indirectly, of
securities (common or preferred stock) or assets representing 50% or more of
the combined securities (common or preferred stock) or assets of Consonus, or

ii.)                      Consonus
approves a merger, consolidation, acquisition, or sale of 50% or more of the
combined securities (common or preferred stock) or all or substantially all of
the assets of Consonus, or

 

6

iii.)                   Consonus “goes
public” as a part of an initial public offering (IPO).

6) Nondisclosure
of Information.

a) Daniel recognizes and acknowledges that the
business and financial records, customer and supplier lists, business contacts,
contracts, trade secrets, confidential methods of operations of Consonus and
other related information, as they may exist from time to time, are valuable,
special and unique assets of Consonus, access to and knowledge of which are
essential to the performance of the duties of Daniel hereunder. Daniel
acknowledges that such information is not generally known in the trade and that
such information provides Consonus with a competitive edge in its market area.
In that regard, Daniel acknowledges and agrees that Consonus has taken and is
taking reasonable steps to protect the confidentiality of, and legitimate
interest in, said information. Daniel therefore agrees that he will not, during
the term hereof, or after termination hereof, disclose any of such records,
contracts, business contacts, lists, secrets, information, processes or methods
to any Person (as defined herein) for any reason or purpose whatsoever except
in connection with the performance of his duties hereunder, nor shall he make
use of any such property for his own purposes or for the benefit of any Person
except Consonus.

b) For purposes of this Agreement, the term Person as
used herein means any natural person, corporation, division of a corporation,
partnership, trust, joint venture, association, firm, company, estate or  unincorporated organization.

7) Restrictive
Covenants.

(a) Covenants.
Daniel covenants and agrees that for the Restriction Period (defined below),
Daniel shall not, directly or indirectly:

(i) Engage, within the United States, without the
prior written consent of Consonus, in any business that competes directly with
a business that is conducted by Consonus or being contemplated by Consonus in
its planning processes on the date that Daniel’s employment with Consonus
terminates for any reason, or that Consonus is considering conducting as of
such termination date.

(ii) For the benefit of Daniel or any other person or
enterprise, (a) solicit, in direct competition with Consonus, any business
whatsoever from any customer or supplier of Consonus; (b) induce or cause any
customer to cease purchasing any service or product from Consonus or to
terminate or change

 

7

such customer’s business relationship with Consonus in
any manner; or (c) induce or cause any supplier to cease providing or selling
any service or product to Consonus or to terminate or change such supplier’s
business relationship with Consonus in any manner.

(iii) For the benefit of Daniel or any other person or
enterprise, (a) induce or solicit any person who is then employed by Consonus,
or has been employed by Consonus at any time during the one-year period preceding
such inducement or solicitation, to leave his employment or other position with
Consonus or to accept any other employment or position; or (b) otherwise assist
any person or enterprise in hiring or otherwise engaging such person.

(b) Indirect
Activities. Daniel shall be deemed to be indirectly engaged in a
business covered by 7(a) if Daniel (a) owns sufficient interest in or
participates in the management, operation or control of any enterprise that is
engaged in a business covered by 7(a), performs consulting or advisory services
for any enterprise that is engaged in a business covered by 7(a). For purposes
of this Agreement, the term “enterprise” includes a sole proprietorship,
partnership, Limited Liability Company, corporation, trust, association, or
other form of entity or association.

(c) Reasonableness
of Restrictions. Daniel acknowledges that the covenants set forth in
this Section 7 do not impose unreasonable restrictions or work a hardship on
Daniel, are essential to the willingness of Consonus to employ Daniel, are
necessary and fundamental to the protection of the business conducted by
Consonus, and are reasonable as to scope, duration, and territory.

(d) Restriction
Period. The covenants set forth in this Section 7 shall be binding
on Daniel for the period (the “Restriction Period”) commencing on the date of
this Agreement and ending one year after termination.

8) Return
of Documents. Upon termination of his employment with
Consonus for any reason, Daniel shall forthwith deliver to Consonus and return,
and shall not retain, any originals or copies of any books, papers or price
lists of Consonus, customer lists, files, books of account, notes and other
documents and data or other writings, tapes or records of Consonus maintained
by or in the possession of Daniel (all of the same are hereby acknowledged and
agreed to be the property of Consonus).

9) Waiver
of Breach. Any waiver of any of the provisions of this
Agreement, or of any breach, inaccuracy in or non-fulfillment of any of the
provisions hereof, or of any representations, warranties or obligations under
or contemplated hereby, shall not be effective unless made in a writing and
signed by the party against whom enforcement of any such waiver

 

8

is sought. A waiver given in any case shall only apply with respect to
that particular act or omission, and shall not be effective as to any further
acts or omissions, regardless of whether they be of the same or similar nature.

10) Miscellaneous.

a) Notices.
All notices and other communications permitted, required or provided for under
the terms of this Agreement shall be made in writing or electronically by
electronic mail, and shall be deemed adequately delivered if delivered by hand
or by the mailing of the notice by first class United States mail, to the
parties at their respective addresses set forth above or such other address as
either party may from time to time notify the other party in the manner
provided herein. Notices delivered by hand shall be deemed given and received
when actually delivered. Mailed notices shall be deemed given when deposited in
a mailbox or U.S. Post Office and received two days after mailing. Notices by
electronic mail shall be deemed received when sender receives electronic
notification of receipt.

b) Entire
Agreement; Amendment. This Agreement contains the entire
agreement between the parties with respect to the subject matter addressed
herein, and all prior discussions, understandings, negotiations and agreements,
whether oral or in writing, are superseded and merged herein. This Agreement
may not be changed, modified or rescinded orally but only by an agreement in
writing signed by the party against whom enforcement of any change,
modification or rescission is sought.

c) Benefit and
Assignability. This Agreement shall inure to the benefit of and
shall be binding upon Consonus and Daniel, and their respective heirs, legal or
personal representatives, successors and permitted assigns. The duties,
obligations, rights and benefits of Daniel under this Agreement are personal to
him and no such duty, obligation, right or benefit shall be subject to
voluntary or involuntary alienation, assignment or transfer.

d) Governing Law.
All questions pertaining to the validity, constructing, execution and
performance of this Agreement shall be governed by and construed in accordance
with the laws of the State of Utah, without giving effect to the conflicts or
choice of law provisions thereof. Any action, suit or other proceeding
initiated by Consonus or Daniel against the other under or in connection with
this Agreement may be brought in any federal or state court in the County of
Salt Lake State of Utah, as the party bringing such action, suit or proceeding
shall elect, having jurisdiction over the subject matter hereof. The parties
hereby waive trial by jury in any action or proceeding arising under this
Agreement.

e)  Remedies.
No remedy herein conferred upon or reserved to a party is intended to be
exclusive of any other available remedy, but each and every such remedy shall
be cumulative

 

9

and in addition to every other remedy given under this
Agreement or in connection with this Agreement, any other agreement, and now or
hereafter existing at law or in equity.

f) Enforceability.
Any term or provision of this Agreement which is invalid, illegal or
unenforceable in any respect in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without rendering invalid, illegal or unenforceable the
remaining terms and provisions or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction.

g) Attorney’s
Fees. If any suit or action is filed by any party to enforce
this Agreement or otherwise with respect to the subject matter of this
Agreement, the prevailing party shall be entitled to recover reasonable
attorney’s fees incurred in preparation or in prosecution or defense of such
suit or action as fixed by the trial court, and if any  appeal is taken from the decision of the
trial court, reasonable attorney’s fees as fixed by the appellate court.

h) Acknowledgment.
Daniel acknowledges that he has read this entire agreement, that he is familiar
with all of the terms and conditions of this Agreement, that he has capacity to
understand the terms hereof, and by executing this Agreement agrees to be bound
by the terms hereof.

i) Survival.
The provisions of paragraphs 6, 7, 8, 10(d) and this paragraph 10(h) shall
survive and continue in full force and effect notwithstanding the termination
of this Agreement and the termination of Daniel’s employment with Consonus
hereunder.

j) Headings.
The headings in this Agreement are intended solely for convenience of reference
and shall be given no effect in the construction or interpretation of this
Agreement

 

10

 

IN
WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Agreement all on the day and year first above written.

 

 

 

	
   

  	
   

  	
  CONSONUS ACQUISITION CORP.

  
	
  

  	
   

  	
  By:

  	
  

  /s/ Nana Baffour

  	
   

  
	
   

  	
   

  	
   

  	
  Nana Baffour, Chairman

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
  

  /s/ Daniel Milburn

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
                            Daniel
  Milburn     5-27-05

  
						

 

11

Schedule A

Description of Duties and
Responsibilities

Daniel shall oversee the operations of Consonus, and shall perform the
following duties:

(i)                       Oversee the
day to day operations of Consonus with direct responsibility for profit and
loss,

(ii)                    Identify and
pursue new revenue opportunities,

(iii)                 Negotiate and
close contracts with new clients, vendors and sub-contractors,

(iv)                Hire, terminate,
supervise, develop and motivate Consonus employees to achieve the established
operating targets for Consonus, and

(v)                   Perform any
such other responsibilities and duties as may be assigned by the shareholders
of Consonus from time to time

 

12Exhibit 10.18

 

	
   

  	
   

  	
  Knox Lawrence International, LLC

  445 Park Avenue 20th Floor

  New York, New York 10022
 Tel 212 792-0920

  Fax 212 792-0958

  
	
   

  	
   

  	
   

  

 

June
1st,  2006

 

PRIVATE AND CONFIDENTIAL

 

Consonus Acquisition Corp.

180 East 100 South

Salt
Lake City, UT

84111

 

Attention:          Rob Muir, Chief Financial Officer

 

Dear
Sirs:

 

Re:        STI Merger Advisory Agreement

 

Knox Lawrence International (“KLI”) understands that
Consonus Acquisition Corp. (the “Corporation”), its portfolio company,
is currently contemplating a Proposed Merger Transaction (“the Merger”) with Strategic Technologies Inc. (“STI”), a North
Carolina based data center infrastructure services and solutions
company. The said merger is the result of strategic alternatives considered by
the Corporation. The purpose of this letter agreement is to set forth our
mutual understanding of the terms of KLI’s engagement by the Corporation.

 

1.                                  Transaction Advisory Services

 

1.1                       KLI
will render financial advisory services that are typical for an engagement of
this type. It is contemplated that KLI may assist the Corporation in the
following manner:

 

(a)                              assisting the Corporation in analyzing STI from a financial
perspective;

 

(b)                             assisting the Corporation in reviewing the data room
material and otherwise assisting in the due diligence process;

 

(c)                              assisting and advising the Corporation with respect to
negotiating the form, structure, terms and price of the Proposed Merger
Transaction;

 

(d)                             providing the Corporation with analysis and advice as to the
financial implications of the Proposed Merger Transaction;

 

(e)                              together with the Corporation’s
counsel, assisting in negotiating documentation necessary to complete the Proposed Merger Transaction;

 

(f)                                providing such other financial advisory services as the
Corporation and KLI agree are appropriate in the circumstances.

 

1.2                       In
carrying out its responsabilities hereunder, KLI will necessarily rely on
information prepared or provided by the Corporation and other sources believed
by KLI to be reliable and will apply

 

 

reasonable standards of diligence to any work performed hereunder in the
nature of an assessment or review of the data or other information.

 

2.                                 Fees

 

2.1                         As consideration for KLI acting as the
Corporation’s financial advisor and exclusive agent hereunder, the Corporation
agrees to pay KLI a financial advisor fee in an amount equal to two (2%) per
cent of the equity value amountable to Consonus in the Merger. The financial
advisor fee shall be due upon the closing of the Merger.

 

3.                                 Use of KLI’ Advice

 

3.1                            The Corporation acknowledges and agrees that all written and
oral opinions, advice, analysis and materials provided by KLI in connection
with its engagement hereunder are intended solely for the benefit of the Corporation and the Corporation’s internal use only
in considering the Proposed Merger Transaction and the Corporation
covenants and agrees that no such opinions, advice or materials shall be used
for any other purpose whatsoever or reproduced, disseminated, quoted from or referred to in whole or in part at any time,
in any manner or for any purpose, without the prior written consent of
KLI in each specific instance.

 

4.                                 Indemnification

 

4.1                            The Corporation shall indemnify and hold harmless KLI, its
affiliates and the respective officers, directors, employees, shareholders and
agents thereof against all losses, claims, actions, damages, liabilities and expenses (including, without
limitation, expenses of investigation and defending any claims or
litigation as the same are incurred), related to or arising out of KLI’s
engagement hereunder or the transactions contemplated hereby provided, however,
that the Corporation will not be responsible
for any such losses, claims, actions, damages, liabilities or expenses to the extent
they arise from actions resulting from the negligence of KLI.

 

5.                                 Confidentiality

 

5.1                            Subject to the terms hereof, KLI agrees to keep confidential
information received pursuant to this engagement in strict confidence, and to
use such information only in the course of and for the purpose of performing
this engagement.

 

6.                                 Successors
and Assigns

 

6.1                            This Agreement will enure to the benefit of and be
binding upon the parties hereto and their respective successors and
assigns provided that no party may assign this Agreement or any rights or
obligations hereunder without the prior written consent of the other.

 

7.                                 Miscellaneous

 

 

2

 

7.1                            This agreement shall be governed by and construed in
accordance with the laws of the state of New York and the laws of the United
States applicable therein.

 

7.2                            This agreement constitutes the entire
agreement among KLI and the Corporation and may only be amended by agreement in writing.

 

7.3                            If one or more provisions contained
herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not effect any other provision of
this letter agreement, but this agreement shall be construed as if such
invalid, illegal or unenforceable provision or provisions had never been
contained herein.

 

7.4                            The parties hereby acknowledge that they have
expressly required this Agreement and all other documents required or permitted to be given or entered into pursuant
hereto to be drawn up in the English language only.

 

7.5                            This agreement may be delivered by
facsimile and may be signed in one or more counterparts  each of which so
executed shall constitute an original and all of which together shall
constitute one and the same agreement.

 

7.6                            The term of this agreement shall be the sooner of (i) the
closing of the Merger; or (ii) June 1st, 2008.

 

If this letter accurately reflects your understanding of the terms of
the proposed transaction, please execute this letter where indicated
below and return a copy of the same (personally, or by facsimile and courier)
to Knox Lawrence, 445 Park Avenue, 20th Floor, New York, NY 10022,
Attention: Johnson Kachidza, facsimile number (212) 792-0958.

 

 

Yours
very truly,

 

KNOX LAWRENCE INTERNATIONAL, LLC

 

	
   

  	
  Per:

  	
  /s/ Johnson Kachidza 

  	
   

  
	
   

  	
   

  	
  Name: Johnson Kachidza 

  	
   

  
	
   

  	
   

  	
  Title:
  Managing Principal

  	
   

  

 

The foregoing accurately
reflects the terms of the engagement which we are to enter into and such terms
are agreed to as of the date first written above.

 

CONSONUS ACQUISITION
CORP.

 

	
   

  	
  Per:

  	
  /s/
  Rob Muir

  	
   

  
	
   

  	
   

  	
  Name: Rob Muir

  	
   

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  	
   

  

 

3

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