Document:

Exhibit 10.8

    Exhibit
      10.8

     

    ASSET
      PURCHASE
      AGREEMENT

    

    THIS
      ASSET PURCHASE AGREEMENT (the “Agreement”) dated as of May 6, 2004 (the
“Effective Date”) by and between ClearOne Communications, Inc., a Utah
      corporation (“Seller”), and M:SPACE, Inc., a Minnesota corporation
      (“Buyer”).

    

    WHEREAS,
      Seller operates a division (“Division”) which is engaged in the marketing and
      sale of audiovisual integration products and services throughout the United
      States and internationally which is partially based in Golden Valley, Minnesota;
      and

    

    WHEREAS,
      the business of the Division, as conducted only in the United States and not
      internationally, is herein referenced as the “Business”; and

    

    WHEREAS,
      Seller desires to sell and Buyer desires to purchase certain assets of Seller
      (and not the liabilities of Seller, except as herein provided) which are
      utilized exclusively or predominantly by the Division in connection with the
      Business, and not internationally, all on the terms set forth
      herein;

    

    NOW,
      THEREFORE, in consideration of the promises and of the mutual covenants and
      conditions contained herein, the parties hereby agree as follows:

    

    1. PURCHASE
      AND SALE OF ASSETS.

    

    1.1 Generally.
      Subject
      to the terms of this Agreement, including the qualifications set forth below,
      Seller shall sell, transfer, convey and deliver to Buyer, and Buyer shall
      purchase from Seller, on and as of the Closing Date, all property and assets
      of
      Seller, tangible or intangible, owned (not leased) by Seller and used
      exclusively or predominantly by the Division in connection with the Business,
      but excluding the Excluded Assets, as such term is defined below (the “Assets”),
      including but not limited to the following:

    

    (a) All
      equipment, demonstration equipment, machinery, computers and other tangible
      personal property exclusively or predominantly used in or related to the
      Business, owned (not leased) by Seller, including but not limited to those
      items
      identified in Schedule 1.1(a), but, notwithstanding anything herein to the
      contrary, excluding (i) all furniture and fixtures other than the furniture
      listed in Schedule 1.1(a), and (b) those items listed as excluded in the
“Notes” column of Schedule 1.1(a).

    

    (b) All
      finished goods and work, inventory, materials in final form, work-in-process,
      raw materials and supplies owned by Seller and exclusively or predominantly
      used
      in or related to the Business including but not limited to the items listed
      in
      Schedule 1.1(b) (the “Inventory”);

    

    (c) The
      intellectual property listed in Schedule 1.1(c) (the “Transferred Intellectual
      Property”).

    

    (d) All
      books, records and datafiles associated with a particular software program,
      owned by Seller and, notwithstanding anything to the contrary herein, used
      exclusively in the conduct of the Business, including but not limited to the
      items listed in Schedule 1.1(d) (the

    

    
      
        
        

      

      
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    “Business
      Books, Records and Datafiles”) although Seller shall be entitled to retain
      copies of the same for record keeping purposes;

    

    (e) Seller’s
      transferable and assignable non-compete, non-disclosure, confidentiality and
      non-solicitation agreements with former employees of Seller, but only with
      respect to such employees who worked exclusively for the Division (the
“Non-Compete Contracts”) but only to the extent locatable by Seller using
      reasonable diligence; 

    

    (f) All
      rights of Seller under any warranty or guarantee (collectively, the
“Warranties”) by any manufacturer, supplier or other transferor of the Assets,
      and all Licenses and Permits, as such term is defined in Section 7.9, but only
      to the extent they are assignable but, with respect to the Warranties, only
      to
      the extent locatable by Seller using reasonable diligence;

    

    (g) All
      rights (but no obligations except the Assumed Liabilities, as such term is
      defined in Section 2 below) of Seller under any purchase orders, contracts,
      guarantees, license agreements, commitments, and SBC maintenance agreement,
      other maintenance agreements commonly known as the “legacy” agreements, or other
      agreements, all as specifically listed on Schedule 1.1(g), but notwithstanding
      anything herein to the contrary, no other contracts (the “Assigned Contracts”);

    

    (h) All
      sales
      records, purchase records, customer lists, salespersons’ lists, sales reports,
      costs sheets, bills of material, technical information, supplier lists,
      advertising and promotional materials, blueprints and specifications, vendor
      records and information, and production records relating exclusively to the
      Business or the Assets, although Seller shall be entitled to retain and use
      copies of these records;

    

    (i) Notwithstanding
      anything to the contrary herein, Seller’s rights in and to only those Internet
      Web site locations (together with all content, information and data located
      on
      such websites and all copyrights thereto) and/or Internet domains and telephone
      and facsimile numbers identified on Schedule 1.1(h), subject to the
      qualifications therein.

    

    The
      Assets shall be transferred by Seller to Buyer in accordance with this Agreement
      with all required consents of any and all third parties and free and clear
      of
      all liabilities, obligations, claims, liens, security interests or encumbrances,
      except (a) as otherwise provided herein with respect to the Assigned
      Contracts and related Assumed Liabilities and (b) that Seller need not
      furnish copies of the Non-Compete Contracts, the Business Books, Records and
      Data files or Warranties at Closing. Rather, Buyer shall be entitled to request
      copies following Closing on an as needed basis, and Seller shall then use
      reasonable diligence to locate the same and furnish copies to Buyer. All Assets
      are sold in an “as is and with all faults” condition.

    

    1.2 Excluded
      Assets.
      Notwithstanding anything in this Agreement to the contrary, Seller is not
      selling, assigning, transferring or conveying to Buyer any of the following
      assets or intangible property interests described in this Section 1.2, which
      were first referred to hereinabove as the “Excluded Assets”: 

    

    (a) Cash
      and
      cash equivalents; 

    

    (b) All
      of
      Seller’s minute books, stock transfer journals, tax returns and the corporate
      seal of Seller;

    

    
      
        
        

      

      
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    (c) All
      books
      and records of Seller except (i) the Business Books, Records and Datafiles,
      (ii)
      as provided in Sections 1.1(d) with respect to copies being retained by
      Seller, and (iii) the items listed in Section 1.1(h), although Seller shall
      be
      permitted to retain copies of such items;

    

    (d) The
      rights of Seller under this Agreement;

    

    (e) The
      name
“ClearOne Communications” and all combinations thereof;

    

    (f) All
      intellectual property other than the Transferred Intellectual
      Property.

    

    (g) All
      accounts receivable of Seller, whether or not related to the
      Business.

    

    (h) All
      prepaid deposits of Seller, whether or not related to the Business.

    

    (i) All
      claims of Seller against third parties, known or unknown, asserted or
      unasserted, which arise before or after the Closing Date, including claims
      for
      payment, except claims for payment arising out of Assigned Contracts and for
      which Buyer is entitled to payment hereunder by the counterparties thereto,
      in
      connection with services to be performed by Buyer thereunder following the
      Closing Date.

    

    (j) All
      of
      Seller’s rights to tax refunds, known or unknown, choate or inchoate, whether or
      not related to the Business.

    

    (k) All
      assets and finished goods relating to the operation of the Division’s
      woodshop.

    

    (l) The
      Spectrologic Tape Library.

    

    (m) All
      furniture and fixtures other than the furniture listed in Schedule
      1.1(a).

    

    (n) All
      real
      and personal property leases.

    

    (o) All
      assets of Seller, tangible or intangible, other than the Assets.

    

    2. ASSUMPTION
      OF LIABILITIES.
      Except
      as hereinafter specifically provided, Buyer shall not and does not assume any
      liabilities or obligations of Seller. Seller shall be solely liable for its
      liabilities and obligations arising from ownership of the Assets, operation
      of
      the Division and Business and incidents and occurrences prior to the Closing
      Date, whether or not reflected in Seller’s books and records and whether or not
      such incidents or occurrences first became known following the Effective Date,
      except as follows: Subject to the terms and conditions of this Agreement, as
      of
      the Closing Date, Buyer assumes only the following:

    

    (a) the
      liabilities and obligations of Seller arising before or after the Closing Date
      and related to the period of time after the Closing Date, but such liabilities
      and 

    

    
      
        
        

      

      
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    obligations
      must relate to services or obligations to be performed by Buyer as assignee
      of
      the Assigned Contracts following the Closing Date, which by their terms are
      to
      be performed following the Closing Date; and 

    

    (b) any
      liability first asserted after the Closing Date under or in respect of the
      Assigned Contracts relating to the period prior to the Closing Date, to the
      extent such liability is asserted after a period of two years following the
      Closing Date. 

    

    (c) any
      liability arising out of the use by Buyer of the telephony listed in Schedule
      1.1(h) following the Closing.

    

    The
      liabilities referred to in subsection (a), (b) and (c) are herein referenced
      as
      the “Assumed Liabilities.”

    

    3. INSTRUMENTS
      OF CONVEYANCE.
      At the
      Closing, pursuant to the terms and subject to the conditions of this Agreement,
      Seller shall:

    

    (a) Execute
      and deliver an Assignment and Assumption Agreement in substantially the form
      attached hereto as Schedule 3 (“Assignment”), which document shall be without
      warranty, except as to title and except as otherwise specifically set forth
      herein; 

    

    Execute
      and deliver such additional instruments of conveyance as may be reasonably
      required to transfer the Assets. At the Closing, pursuant to the terms and
      subject to the conditions of this Agreement, Buyer shall also execute and
      deliver to Seller, the Assignment. 

    

    4. CLOSING.
      The
      Closing with respect to the transactions provided for herein shall take place
      at
      such place and time as the parties may mutually agree, on (a) the earlier
      to occur of (i) a day which is 5 business days after the fulfillment of the
      conditions precedent referenced in Sections 13 and 14, or (ii) May 6,
      2004, or (b) at such other date as the parties may mutually agree (the
“Closing Date”). Notwithstanding the foregoing, neither party shall be obligated
      to close the transactions contemplated by this Agreement unless all conditions
      precedent referenced in this Agreement have been satisfied or waived.

    

    5. PURCHASE
      PRICE.
      The
      total purchase price for the Assets and the performance of Seller’s obligations
      under this Agreement is Buyer’s assumption of the Assumed
      Liabilities.

    

    6. LABOR
      AND EMPLOYMENT MATTERS.
      Buyer
      shall not assume any employment obligations, wage or salary payment obligations,
      including without limitation those arising under any pension, profit sharing,
      deferred compensation, severance, welfare, sick leave, accrued or earned
      vacation, wage or other employee benefit plan, procedure, policy or practice
      of
      Seller regardless of whether such plan, procedure, policy or practice is
      disclosed in this Agreement. Notwithstanding the foregoing, Buyer may make
      offers of employment to certain of Seller’s employees, pursuant to terms
      determined by Buyer. Seller will furnish to Buyer such information in their
      personnel files as Buyer may reasonably request and with respect to which it
      is
      lawful for Seller to disclose. 

    

    7. REPRESENTATIONS
      AND WARRANTIES OF SELLER.
      Seller
      hereby represents and warrants to Buyer that:

    

    
      
        
        

      

      
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    7.1 Incorporation.
      Seller
      is a corporation duly incorporated, validly existing and in good standing under
      the laws of the State of its incorporation, and has the corporate power to
      own
      or lease its properties and to carry on the Business as it is now being
      conducted. 

    

    7.2 Authority
      Relative to this Agreement.
      The
      execution, delivery and performance of this Agreement by Seller, including
      without limitation the sale, conveyance, transfer and delivery and other
      transactions contemplated herein or hereby: (a) have been or will be, prior
      to
      Closing, duly and effectively authorized by the Board of Directors of Seller,
      with respect to the Assets sold by Seller hereunder; and (b) have been or will
      be, prior to Closing, authorized and approved by all of Seller’s shareholders,
      if necessary. 

    

    7.3 Conflicting
      Agreements, Governmental Consents.
      Except
      as disclosed on Schedule 7.3, the execution, delivery and performance by Seller
      of this Agreement and all of the other agreements and instruments to be executed
      and delivered pursuant hereto (collectively, the “Transaction Documents”), the
      consummation of the transactions contemplated hereby, and the performance or
      observance by Seller of any of the terms or conditions hereof or thereof, will
      not (with or without notice or lapse of time) (a) conflict with, or result
      in a
      breach or violation of the terms or conditions of, or constitute a default
      under, or result in the creation of any lien on any of the Assets pursuant
      to
      any award of any arbitrator, or any indenture, contract or agreement,
      instrument, order, judgment, decree, statute, law, rule or regulation to which
      Seller or any of the Assets is subject, or (b) require any filing or
      registration with, or any consent or approval of, any federal, state or local
      governmental agency or authority, or (c) contravene, conflict with, or result
      in
      a violation or breach of any provision of, or give any person or entity 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 contract
      or
      other arrangement to which Seller is a party or by which Seller is bound or
      to
      which any of the Assets is subject (or result in the imposition of any security
      interest upon any of such Assets).

    

    7.4 Restrictive
      Covenants.
      Seller
      is not a party to nor are the Assets bound or affected by any agreement or
      document containing any covenant limiting the freedom of Seller to compete
      in
      the Business or which materially or adversely affects the business practices,
      operations or conditions of the Business or the continued operation of the
      Business after the Closing Date on substantially the same basis and on
      substantially the same terms and conditions as the Business is presently carried
      on. 

    

    7.5 Binding
      Obligation.
      This
      Agreement and the Transaction Documents are, or when delivered will be, legally
      valid and binding obligations of Seller, enforceable in accordance with their
      respective terms, subject to the qualification that such enforceability may
      be
      limited by bankruptcy, insolvency, reorganization, moratorium and other similar
      laws relating to or affecting creditors’ rights generally and by general
      equitable principles (regardless of whether such enforceability is considered
      in
      a proceeding in equity or at law). 

    

    7.6 Actions,
      Suits, Proceedings.
      Except
      as disclosed in Schedule 7.6, there are no actions, suits or proceedings pending
      or, to the knowledge of Seller, threatened against Seller or any of the Assets
      in any court or before any federal, state, municipal or other governmental
      agency or before any other private or public tribunal or quasi-tribunal which,
      (a) if decided adversely to Seller, would have a material adverse effect upon
      the Business or Assets, (b) seek to restrain or prohibit the transactions
      contemplated by this Agreement or obtain any damages in connection therewith,
      or
      (c) in any way call into question the validity of this Agreement or the other
      agreements and instruments 

    

    
      
        
        

      

      
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    to
      be
      executed and delivered by Seller; nor is Seller in default with respect to
      any
      order of any court or governmental agency entered against it in respect of
      the
      Business or Assets. Seller has not has received notice, formally or otherwise,
      of any judgments, orders, decrees, stipulations, settlement agreements, liens
      or
      injunctions, relating in any way to the Assets, which have not been wholly
      and
      completely settled, complied with and discharged. 

    

    7.7 No
      Material Violations.
      Except
      as disclosed in Schedule 7.7, Seller is not in violation of any applicable
      law,
      rule or regulation relating to the Business that would reasonably be expected
      to
      have a material adverse effect on the Business, and, to the knowledge of Seller,
      there are no requests, claims, notices, investigations, demands, administrative
      proceedings, hearings or other governmental claims against Seller alleging
      the
      existence of any such violation that would have a material adverse effect on
      the
      Business. For purposes of this Agreement, “material adverse effect” means any
      change in or effect (i) that is or will be materially adverse to the Business
      taken as a whole, or (ii) that will prevent or materially impair Seller’s
      ability to consummate the transaction contemplated by this Agreement, provided
      that a material adverse effect shall not include changes or effects (a) relating
      to economic conditions or financial markets in general, (b) resulting from
      the
      voluntary termination of employment by employees of Seller between the date
      of
      this Agreement and the Closing Date or (c) resulting from actions required
      to be
      taken by the terms of this Agreement. 

    

    7.8 Title
      to Assets and Absence of Encumbrances.
      Except
      as noted otherwise in this Agreement or any schedule thereto with respect to
      qualifications as to assignability or transferability, (i) Seller owns and
      has
      good and marketable title to all of the Assets; (ii) the delivery to Buyer
      of
      the instruments of transfer of ownership contemplated by this Agreement will
      vest good and marketable title to the Assets in Buyer, free and clear of any
      and
      all liabilities (except as otherwise provided in this Agreement with respect
      to
      Assigned Contracts and the Assumed Liabilities), liens, claims, and encumbrances
      of every kind and character whatsoever; and (iii) the Assets include all assets
      necessary for the operation of the Business as it has been operated by Seller,
      except with respect to contracts which are not being assigned hereunder.

    

    7.9 Licenses
      and Permits.
      All
      material licenses, permits, franchises, approvals and governmental
      authorizations (collectively the “Licenses and Permits”) required for Seller in
      connection with the operation of the Business, except with respect to
      qualifications of Seller to do business as a foreign corporation in states
      other
      than Utah, as to which Seller makes no warranty, are listed in Schedule 7.9.
      Except for the Licenses and Permits, no other such licenses, permits,
      franchises, approvals and governmental authorizations (other than qualifications
      of Buyer to do business as a foreign corporation in states outside of Minnesota)
      are required for the operation of the Business. 

    

    8. Labor
      and Employment Agreements.
      The
      Division is not subject to any collective bargaining agreement. 

    

    8.1 Environmental
      Matters.
      Except
      as set forth in Schedule 8.1:

    

    (a) Seller
      is
      conducting and has conducted its Business in compliance with all applicable
      Environmental Laws and pursuant to all necessary government
      permits;

    

    (b) There
      is
      no pending litigation and no pending or threatened Environmental Claim by any
      person (including, but not limited to, any governmental authority) with respect
      to the Business; 

    

    
      
        
        

      

      
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    (c) Seller
      has not received any written notification from the United States Environmental
      Protection Agency advising Seller of any potential liability under the
      Comprehensive Environmental Response, Compensation, and Liability Act
      (“CERCLA”), as amended, with respect to the Business;

    

    (d) Throughout
      this Agreement, the following terms shall have the meanings set forth
      below:

    

    (i) “Environmental
      Claim” shall mean any claim or demand, or notice thereof, alleging potential
      liability (including, without limitation, liability for investigative costs,
      clean-up costs, monitoring costs, governmental response costs, natural resources
      damages, property damages, liability for nuisance or damage to property values,
      personal injuries or penalties) arising out of, based on or resulting from:
      (A)
      noncompliance with Environmental Laws by Seller in connection with the
      Business.

    

    (ii) “Environmental
      Laws” shall mean any federal, state or local statute, regulation, rule,
      ordinance or common law pertaining to the protection of human health or the
      environment and any applicable orders, judgments, decrees, permits, licenses
      or
      other authorizations or mandates under such laws.

    

    8.2 Employee
      Plans.
      

    

    (a) After
      the
      Closing, Seller warrants that Buyer shall not have any responsibility or
      liability under any:

    

    (i) employee
      benefit plan, as defined in Section 3(3) of the Employee Retirement Income
      Security Act of 1974, as amended (“ERISA”), maintained or contributed to by
      Seller or any subsidiary for any of its employees, former employees or directors
      (or their respective beneficiaries), including without limitation any group
      insurance or self-insured health plan, severance pay plan, non-qualified
      deferred compensation plan or retirement plan intended to be qualified under
      Internal Revenue Code (the “Code”) Section 401(a) (collectively, the "ERISA
      Plans");

    

    (ii) trust
      fund maintained by Seller or any subsidiary in connection with any such ERISA
      Plan;

    

    (iii) "cafeteria
      plan" ("125 Plan") maintained by Seller and governed by Code Section 125;
      or

    

    (iv) other
      plan maintained by Seller providing compensation, benefits or perquisites to
      any
      employees, former employees or directors (or their respective beneficiaries)
      of
      Seller or any subsidiary, including without limitation any incentive, bonus,
      stock option, restricted stock, vacation pay or sick pay plan.

    

    (b) Seller
      represents that Seller and its subsidiaries have timely complied with all of
      its
      "COBRA" obligations under ERISA Section 602, Code Section 4980B and applicable
      state insurance laws, with respect to any group life insurance and health
      benefit continuation coverage required to be provided by those of its ERISA
      Plans and any 125 Plan that provide such benefits for employees (and their
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    connection
      with the Assets being acquired by Buyer hereunder; and Seller warrants that
      Seller and its subsidiaries will continue, after the Closing, to comply with
      such obligations with respect to any of their employees, former employees or
      their respective beneficiaries who are or become entitled to such continuation
      coverage, to the extent required by applicable laws. 

    

    8.3 Assigned
      Contracts.
      Seller
      and, to the knowledge of Seller, each other party thereto, has substantially
      performed all obligations required to be performed under the Assigned Contracts
      to date, and are not in default under any Assigned Contract. The Assigned
      Contracts are each in full force and effect and, except as set forth in Schedule
      8.3(a), are assignable to Buyer without the consent of third parties, and Seller
      has not waived or assigned to any other person any of its rights thereunder.
      The
      Assigned Contracts are complete and accurate or prior to Closing will be
      complete and accurate, and complete copies of such contracts including all
      amendments or supplements thereto have been or will be delivered to Buyer prior
      to Closing. No such contract shall prohibit or limit the ability of Seller
      to
      engage in any business activity or compete with any person in connection with
      the Business and/or other activities of the Buyer. Seller has delivered to
      Buyer
      three basic forms of maintenance contracts (copies of which are attached as
      Schedule 8.3(b), and each of the Assigned Contracts is substantially
      identical in form to at least one of such forms of maintenance contracts,
      recognizing that each such maintenance contract may vary from one another as
      to
      details. 

    

    8.4 Intellectual
      Property Rights.
      All
      Intellectual Property included in the Assets are solely registered (if at all)
      in the name of Seller, of which Seller has all right, title and interest, and
      have not been licensed or otherwise been made available by Seller for use by
      others except in the ordinary course of Seller’s Business. To Seller’s
      knowledge, all such registered intellectual property rights are in full force
      and effect. Except as listed elsewhere in this Agreement, Seller does not
      license from others the right to use any industrial or intellectual property
      rights in the Business. To Seller’s knowledge there has been no unauthorized use
      or disclosure or misappropriation of any of its intellectual properties utilized
      in connection with the Business, and Seller has taken reasonable steps in its
      view, to protect against the unauthorized use or disclosure of its intellectual
      property. 

    

    8.5 Inventory.
      The
      Inventory is being sold and transferred hereunder in an “as is, with all faults”
condition, inspected and accepted by Buyer.

    

    8.6 Taxes.
      Seller
      has paid all taxes, including federal, state and local income, profits,
      franchise, sales, use, property, excise, payroll, and other taxes and
      assessments (including interest and penalties) relating to or for Seller, the
      Assets or the Business, in each case to the extent that such have become due
      and
      are not being contested in good faith. No claims for additional taxes have
      been
      asserted against Seller and no audits are pending with respect to any tax
      liabilities of Seller. 

    

    8.7 Product
      Liability.
      Except
      as set forth in Schedule 8.7, it has no liability (and Seller has no knowledge
      of any basis for any present or future action, suit, proceeding, hearing,
      investigation, charge, complaint, claim, or demand against Seller giving rise
      to
      any liability) arising out of any injury to individuals or property as a result
      of the ownership, possession, or use of any product manufactured, sold, or
      delivered by Seller. 

    

    8.8 Disclosure.
      The
      representations and warranties contained in this Section 8 do not contain
      any untrue statement of a material fact or omit to state any material fact
      necessary in order to make the statements and information contained in this
      Section 8 not misleading.

    

    
      
        
        

      

      
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    9. REPRESENTATIONS
      AND WARRANTIES OF BUYER.
      Buyer
      hereby represents and warrants to Seller as follows:

    

    9.1 Organization.
      Buyer
      is a corporation duly incorporated and existing and in good standing under
      the
      laws of the State of Minnesota and has the corporate power to execute and
      deliver this Agreement and to consummate the transactions contemplated
      hereby.

    

    9.2 Corporate
      Authority.
      The
      execution and delivery of this Agreement, and the Transaction Documents, and
      the
      consummation of transactions contemplated hereby or thereby have been duly
      authorized by all necessary corporate action and will not violate or conflict
      with any agreement or order by which Buyer is bound. This Agreement and the
      Transaction Documents are, or when delivered will be, legally, valid and binding
      obligations of Buyer, enforceable in accordance with their respective
      terms.

    

    9.3 No
      Conflict.
      Neither
      the execution, delivery and performance by Buyer of this Agreement nor the
      consummation by it of the transactions contemplated hereby, will:

    

    (a) Result
      in
      a violation of or default under or give rise to a right of termination,
      cancellation or acceleration, with or without the giving of notice or the lapse
      of time or both, of any agreement of Buyer;

    

    (b) Adversely
      affect Buyer’s ability to perform its obligations hereunder or otherwise
      consummate the transactions contemplated hereby; 

    

    (c) Result
      in
      a violation of any statute, rule, regulation, ordinance, code, order, judgment,
      writ, injunction, decree or award, which would have a material adverse effect
      on
      Buyer’s ability to perform its obligations hereunder or to otherwise consummate
      the transactions contemplated hereby. 

    

    9.4 Absence
      of Litigation.
      There
      are no claims, actions, suits or proceedings (public or private) pending or,
      to
      Buyer’s knowledge, threatened against or effecting Buyer at law or in equity,
      before or by any federal, state, municipal or other governmental or
      non-governmental department, commission, board, bureau, agency, court or other
      instrumentality, or by any private person or entity that if adversely
      determined, would individually or in the aggregate, have an adverse effect
      upon
      Buyer’s ability to enter into and consummate the transactions contemplated by
      this Agreement.

    

    10. NONCOMPETE
      AND CONFIDENTIAL INFORMATION.

    

    (a) Noncompetition.
      Seller
      will not, without the prior written consent of Buyer (which Buyer may withhold
      with or without reason) for the period commencing on the Effective Date and
      ending three (3) years from such date (the “Noncompete Period”), engage or be
      interested, directly or indirectly, whether alone or together with or on behalf
      of or through any other person, firm, association, trust, venture or corporation
      whether as partner, stockholder, agent, officer, director, employee, technical
      adviser, lender, trustee, beneficiary, or otherwise, in any phase of the
“Restricted Business” (as hereinafter defined) in the “Restricted Area” (as
      hereinafter defined). Notwithstanding anything to the contrary in this Section
      10, Seller shall not be restricted from and shall be entitled to:

    

    
      
        
        

      

      
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    (i) Purchase
      or otherwise acquire up to (but not more than 5% of any class of securities
      of
      any person engaged in the Restricted Business, so long as such securities are
      publicly traded; and

    

    (ii) Be
      acquired by, merged, or otherwise consolidated or combined with a business
      or
      person, a component of which is engaged in the Restricted Business.

    

    (b) Nonsolicitation.
      During
      the Noncompete Period Seller will not, for itself or any other person or entity,
      employ or otherwise engage, or offer to employ or otherwise engage, or solicit
      (except as may occur in solicitations of a general nature which are not targeted
      towards specific individuals) any person who has been an employee, or sales
      representative of the Division or Buyer at any time within the one year period
      prior to the date hereof or during the term of the Noncompete Period (the
“Nonsolicitation Time Period”), nor during the Noncompete Period will Seller or
      any other person or entity on its behalf, contact or solicit any Restricted
      Business in the Restricted Area (as defined herein) from any person or entity
      that has been or is a customer or client of Seller or Buyer at any time during
      the Nonsolicitation Time Period.

    

    (c) Restricted
      Business.
      The
      term “Restricted Business” means only the design, installation and maintenance
      (but not manufacture) of integrated (as such term is described below)
      audio/visual systems and integrated telephone conferencing systems for end
      users, including the resale of third-party manufactured audio/visual and phone
      conferencing systems in connection (and only in connection) with such design,
      installation and maintenance services. The term “integrated” refers to the
      integration by Buyer of individual products manufactured by two or more
      manufacturers unaffiliated with Buyer into audio/visual or telephone
      conferencing systems, which are then installed by Buyer for end users.
      Notwithstanding the foregoing, the term “Restricted Business” does not include
      the design and manufacture by Seller or its contracted manufacturers of
      audio/visual and phone conferencing systems (including manufactured products
      comprising all or a portion of such systems but which products may themselves
      contain components manufactured by third parties), or the design, sale,
      installation and maintenance by Seller, its affiliates, dealers, distributors,
      manufacturers’ representatives and agents, of such manufactured systems
      (including manufactured products comprising all or a portion of such systems
      but
      which products may themselves contain components manufactured by third parties).
      Nor does the term “Restricted Business” include the maintenance by Seller of one
      or more “Helpdesks.”

    

    (d) Restricted
      Area.
      The
      term “Restricted Area” means the geographic areas of the United States of
      America, not including its territories and possessions.

    

    (e) Engage
      or Be Interested, Directly or Indirectly.
      The
      term “engage or be interested, directly or indirectly,” as used herein, shall
      include giving advice or technical or financial assistance, by loan, guarantees,
      stock transactions or in any other manner to any person, firm, association,
      trust, venture or corporation doing or proposing to undertake such “Restricted
      Business” in the area covered by this Agreement.

    

    (f) Injunctive
      Relief.
      In the
      event that said covenant not to compete is considered by a court of competent
      jurisdiction to be excessive in its duration or in the area to which it applies,
      it shall be considered modified and valid for such duration and for such area
      as
      said court may determine reasonable under the circumstances. In recognition
      of
      the irreparable harm that a violation of said covenant would cause to Buyer,
      Seller agrees that Buyer shall have the right to 

    

    
      
        
        

      

      
        10

        
        

      

      
        
        

      

    

    

    enforce
      this agreement by specific remedies, which shall include, among other things,
      temporary restraining orders and temporary and permanent injunctions. In the
      event of any such violation, Seller agrees to pay the reasonable attorneys’ fees
      incurred by Buyer in pursuing any of its rights with respect to such violation
      or violations in addition to the actual damages sustained by Buyer as a result
      thereof. In turn, Buyer agrees to pay the reasonable attorneys’ fees incurred by
      Seller if Buyer is not the prevailing party in connection with Buyer’s efforts
      to enforce this Agreement. 

    

    (g) Confidential
      Information.
      Each
      party acknowledges that it has, will or may have access to and become informed
      of Confidential Information of the other which is a competitive asset of such
      other party. As used herein, “Confidential Information” shall mean information
      that is proprietary to a party or proprietary to others and entrusted to a
      party, whether or not trade secrets. Confidential Information includes, but
      is
      not limited to, information relating to business plans and to business as
      conducted or anticipated to be conducted by a party and to its past, current
      or
      anticipated business (including without limitation information relating to
      the
      Restricted Business). Confidential Information also includes, without
      limitation, customer lists and information concerning purchasing, accounting,
      marketing, selling, products and services of a party. The Confidential
      Information with respect to the Business and the Assets purchased by Buyer
      pursuant to the Agreement shall be owned exclusively by Buyer, except to the
      extent that such Confidential Information may have other uses in the remainder
      of Seller’s business or businesses, whether currently or in the future,
      including but not limited to Seller’s international audiovisual integration
      business. Each party agrees that it will keep all Confidential Information
      owned
      exclusively by the other party hereto in strict confidence and to never directly
      or indirectly make known, divulge, reveal, furnish, make available, or use
      any
      such Confidential Information. Notwithstanding the foregoing, a party shall
      not
      have a duty of confidentiality with respect to any information disclosed by
      the
      other party which:

    

    (i) The
      receiving party can demonstrate was known to it at the time of its disclosure,
      and was not acquired either directly or indirectly in breach of any violation
      of
      secrecy or confidentiality obligations owed to the disclosing party by any
      other
      party; 

    

    (ii) Is
      or
      becomes publicly known through no wrongful act of the receiving party or any
      other third parties; 

    

    (iii) Is
      received from a third party subsequent to the date of this agreement without
      breach of the restriction contained in this Agreement or any agreement between
      a
      third party and the disclosing party; or 

    

    (iv) Is
      approved for release by the written authorization of the disclosing party,
      or

    

    (v) That
      has
      been or is independently developed by the receiving party or any other person
      as
      a matter of record, without reliance on the information provided by the
      disclosing party.

    

    11. INDEMNIFICATION
      BY THE SELLER

    

    11.1 Generally.
      Subject
      to the terms of this Section 11, Seller shall indemnify, defend and hold
      harmless Buyer and its directors, officers, employees, agents, consultants,
      representatives, affiliates, successors, permitted transferees and assigns
      (individually a “Buyer 

    

    
      
        
        

      

      
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    Indemnified
      Party”; and collectively the “Buyer’s Indemnified Parties”), promptly upon
      demand, at any time and from time to time, from, against, and in respect of
      any
      and all demands, claims, losses, damages, judgments, liabilities, assessments,
      suits, actions, proceedings, interest, penalties, and expenses (including,
      without limitation, settlement costs and any legal, accounting and other
      expenses for investigating or defending any actions or threatened actions or
      for
      enforcing such rights of indemnity and defense) incurred or suffered by the
      Buyer’s Indemnified Parties, in connection with, arising out of or as a result
      of each and all of the following:

    

    (a) any
      breach of any covenant, obligation, agreement, representation or warranty (but
      with respect to any representation or warranty, subject to the limitations
      of
      Section 17.3) made by Seller in this Agreement or any other document or
      instrument delivered by Seller to Buyer or entered into as part of the
      transactions contemplated by this Agreement;

    

    (b) any
      and
      all liabilities and obligations of Seller except for the Assumed Liabilities,
      and any and all liabilities and obligations arising from ownership of the
      Assets, operation of the Business and incidents and occurrences on or prior
      to
      the Effective Date, whether or not reflected in its book and records and whether
      or not manifest on, after or prior to the Effective Date;

    

    (c) any
      environmental liabilities, including but not limited to, clean-up, remediation
      and closure liabilities, arising out of, based on or resulting from (i) Seller’s
      operation of the Business; or (ii) Seller’s ownership of the Assets prior to the
      Closing Date; and

    

    (d) any
      and
      all liabilities arising out of the lawsuit referenced in Schedule
      8.7.

    

    11.2 Non-Waiver,
      Non-Exclusive Remedy.
      Failure
      of the Buyer Indemnified Parties to give reasonably prompt notice of any claim
      or claims shall not release, waive or otherwise affect Sellers’ obligations with
      respect thereto except to the extent that Seller can demonstrate actual loss
      and
      prejudice as a result of such failure. 

    

    12. INDEMNIFICATION
      BY BUYER

    

    12.1 Generally.
      Subject
      to the terms of this Section 12, Buyer shall indemnify, defend and hold harmless
      Seller and its directors, officers, employees, agents, consultants,
      representatives, affiliates, successors, permitted transferees and assigns
      (individually a “Seller Indemnified Party”; and collectively the “Seller’s
      Indemnified Parties”), promptly upon demand, at any time and from time to time,
      from, against, and in respect of any and all demands, claims, losses, damages,
      judgments, liabilities, assessments, suits, actions, proceedings, interest,
      penalties, and expenses (including, without limitation, settlement costs and
      any
      legal, accounting and other expenses for investigating or defending any actions
      or threatened actions or for enforcing such rights of indemnity and defense)
      incurred or suffered by the Seller’s Indemnified Parties, in connection with,
      arising out of or as a result of each and all of the following:

    

    (a) any
      breach of any covenant (including specifically the covenants of Buyer in
      Section 16.1), obligation, agreement, representation or warranty (but with
      respect to any representation or warranty, subject to the limitations of Section
      17.3) made by Buyer in this Agreement or any other document or instrument
      delivered by Buyer to Seller or entered into as part of the transactions
      contemplated by this Agreement; and

    

    
      
        
        

      

      
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    (b) any
      misrepresentation or omission contained in any document, statement or
      certificate furnished by Buyer pursuant to this Agreement or in connection
      with
      the transactions contemplated by this Agreement.

    

    (c) All
      Assumed Liabilities.

    

    12.2 Non-Waiver,
      Non-Exclusive Remedy.
      Failure
      of the Buyer Indemnified Parties to give reasonably prompt notice of any claim
      or claims shall not release, waive or otherwise affect Buyer’s obligations with
      respect thereto except to the extent that Seller can demonstrate actual loss
      and
      prejudice as a result of such failure. 

    

    12.3 Whenever
      any claim arises for indemnification hereunder, the indemnified party (hereafter
      the “Indemnified Party”) shall notify the indemnifying party (hereafter the
“Indemnifying Party”) in writing by registered or certified mail promptly after
      the Indemnified Party has actual knowledge of the facts constituting the basis
      for such claim (the “Notice of Claim”), provided that the failure of the
      Indemnified Party to notify the Indemnifying Party shall not invalidate any
      claim for indemnification hereunder unless the failure to so notify prejudices
      the Indemnifying Party. Such notice must be given in good faith, shall specify
      with particularity all facts known to the Indemnified Party giving rise to
      such
      indemnification right and, if possible, the amount or an estimate of the amount
      of the liability arising therefrom.

    

    12.4 Right
      to Defend.
      If the
      facts giving rise to any such claim for indemnification involve any actual
      or
      threatened claim or demand by any third party against the Indemnified Party
      or
      any possible claim or demand by the Indemnified Party against any third party,
      the Indemnifying Party shall be entitled (without prejudice to the right of
      the
      Indemnified Party to participate in the determination of such claim or demand
      at
      its expense through counsel of its own choosing) to defend or prosecute such
      claim or demand in the name of the Indemnified Party at the Indemnifying Party’s
      expense and through counsel of its own choosing if it gives written notice
      of
      its intention to do so to the Indemnified Party at any time. Whether or not
      the
      Indemnifying Party chooses to so defend or prosecute such claim, the parties
      shall cooperate in the defense of prosecution thereof and shall furnish such
      records, information and testimony and attend such conferences, discovery
      proceedings, hearings, trial and appeals as may be reasonably requested in
      connection therewith. 

    

    12.5 Settlement.
      Except
      as provided in Section 12.4, (a) neither the Indemnified Party nor the
      Indemnifying Party shall make any settlement of any claim that would give rise
      to an indemnification claim hereunder without the consent of the Indemnifying
      Party, which consent shall not be unreasonably withheld, and (b) if a firm
      offer is made to settle a claim and the Indemnifying Party desires to accept
      such offer, but the Indemnified Party elects not to agree to such settlement
      offer, the Indemnified Party may contest or defend such claim and, in such
      event, the total maximum liability of the Indemnifying Party to indemnify or
      otherwise reimburse the Indemnified Party in accordance with this Agreement
      with
      respect to such claim shall be limited to and shall not exceed the amount of
      such settlement offer.

    

    12.6 Claim
      Reduction.
      Any
      claim for indemnification under this Article 12 shall be reduced to the
      extent of any third party insurance actually received by the Indemnified
      Party.

    

    13. CONDITIONS
      PRECEDENT TO THE OBLIGATIONS OF SELLER.
      The
      obligations of Seller to consummate the transactions contemplated hereby are
      subject to the satisfaction (or waiver by Seller) on or prior to the Closing
      Date of the following conditions precedent:

    

    
      
        
        

      

      
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    13.1 Representations
      and Warranties.
      All the
      representations and warranties of Buyer set forth herein shall have been true
      and correct in all material respects when made and shall be true and correct
      in
      all material respects on and as of the Closing Date with the same force and
      effect as though made on and as of the Closing Date.

    

    13.2 Performance
      of Agreements.
      Buyer
      shall have performed in all material respects all obligations and agreements
      and
      complied in all material respects with all covenants and conditions set forth
      herein which are to be performed by or complied with by or prior to the Closing
      Date.

    

    13.3 Prohibition.
      There
      shall have been no written or oral claims by a third party challenging
      consummation of the transactions contemplated by this Agreement and no order
      or
      preliminary or permanent injunction shall have been entered in any action or
      proceeding before any United States federal or state court of competent
      jurisdiction or governmental authority (which has jurisdiction over the
      enforcement of any applicable laws) making illegal the consummation of any
      of
      the transactions hereunder.

    

    13.4 Closing
      Documents.
      The
      form and substance of all certificates, instruments and other documents required
      to be delivered to Buyer under this Agreement or necessary to affect the
      transfer of the Assets and assumption of the Assumed Liabilities, shall have
      been executed by Buyer and delivered to Seller on or before the Closing in
      the
      form attached hereto or in a form otherwise reasonably acceptable to Seller,
      including all the documents required by Section 3 hereof.

    

    13.5 Officer
      Certificate.
      Buyer
      shall have furnished to Seller a certificate, dated as of the Closing Date,
      signed by an officer of Buyer to the effect that Buyer has fulfilled the
      conditions set forth in Sections 13.1 and 13.2 hereof.

    

    13.6 Consents.
      All
      required Consents shall have been obtained.

    

    14. CONDITIONS
      PRECEDENT TO THE OBLIGATIONS OF BUYER.
      The
      obligations of Buyer to consummate the transactions contemplated hereby are
      subject to the satisfaction (or waiver by Buyer ) on or prior to the Closing
      Date of the following conditions precedent:

    

    14.1 Representations
      and Warranties.
      All the
      representations and warranties of Seller set forth herein shall have been true
      and correct in all material respects when made and shall be true and correct
      in
      all material respects on and as of the Closing Date with the same force and
      effect as though made on and as of the Closing Date.

    

    14.2 Performance
      of Agreements.
      Seller
      shall have performed in all material respects all obligations and agreement
      and
      complied in all material respects with all covenants and conditions set forth
      herein which are to be performed by or complied with by or prior to the Closing
      Date.

    

    14.3 Prohibition.
      There
      shall have been no written or oral claims by a third party challenging
      consummation of the transactions contemplated by this Agreement and no order
      or
      preliminary or permanent injunction shall have been entered in any action or
      proceeding before any United States federal or state court of competent
      jurisdiction or governmental authority (which has 

    

    
      
        
        

      

      
        14

        
        

      

      
        
        

      

    

    

    jurisdiction
      over the enforcement of any applicable laws) making illegal the consummation
      of
      any of the transactions hereunder.

    

    14.4 Closing
      Documents.
      The
      form and substance of all certificates, instruments and other documents required
      to be delivered to Seller under this Agreement or necessary to affect the
      transfer of the Assets and assumption of the Assumed Liabilities, shall have
      been executed by Seller and delivered to Buyer on or before the Closing in
      the
      form attached hereto (including the Assignment of Domain Names and the
      Assignment of Marks attached as Exhibits 14.4(a) and 14.4(b) or in a form
      otherwise reasonably acceptable to Buyer, including all the documents required
      by Section 3 hereof.

    

    14.5 Officer
      Certificate.
      Seller
      shall have furnished to Buyer a certificate, dated as of the Closing Date,
      signed by an officer of Seller to the effect that Seller has fulfilled the
      conditions set forth in Sections 14.1 and 14.2 hereof.

    

    14.6 Consents.
      All
      required Consents shall have been obtained.

    

    15. TERMINATION
      PRIOR TO THE CLOSING.

    

    15.1 Termination.
      This
      Agreement may be terminated at any time prior to the Closing as
      follows:

    

    (a) By
      the
      mutual consent of Seller and Buyer.

    

    (b) By
      Seller
      or Buyer if there shall have been any statute, rule or regulation enacted or
      promulgated by any government body or agency which makes the purchase of the
      Assets illegal or renders Buyer unable to purchase or Seller unable to transfer
      the Assets or any part thereof.

    

    (c) If
      any of
      the conditions set out in Section 12 and 13 are not satisfied or waived at
      or before the Closing Date, this Agreement may be terminated by the Party
      entitled to the benefit of such condition upon notice in writing to the other
      Party.

    

    (d) If
      the
      Closing has not occurred on or prior to June 1, 2004, this Agreement may be
      terminated by either Party upon giving written notice to the other
      Party.

    

    15.2 Rights
      Upon Termination.
      In the
      event of a termination of this Agreement pursuant to this Section 15, the
      obligations of the Parties under this Agreement shall be at an end, provided
      that any party may also bring an action against the other for damages suffered
      where the non-performance or non-fulfillment of the relevant condition is as
      a
      result of (a) a breach of a covenant, representation or warranty contained
      in this Agreement by the other and such party has not used commercially
      reasonable efforts to cure such breach prior to the Closing; or (b) a
      breach of Section 17.4.

    

    15.3 Effect
      of Termination.
      In the
      event of termination by reason of Section 15.1 and subject to the terms of
      Section 15.2, this Agreement shall forthwith become void and of no force
      and effect and there shall be no further obligations hereunder on the part
      of
      the parties except for the obligations set forth in Sections 10(g) and
      17.7.

    

    
      
        
        

      

      
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    16. OTHER
      AGREEMENTS.

    

    16.1 Consequences
      of Non-Assignability and Service Agreement. 

    

    (a) Notwithstanding
      anything to the contrary stated in this Agreement, but subject to Subsection
      (b)
      below, if (i) the sale, assignment, transfer or conveyance of any of the
      Assigned Contracts without approval, consent or waiver of another party thereto
      would violate, conflict with, result in a breach or termination of, or
      constitute a default or event of default under (or an event which with due
      notice or lapse of time, or both, would continue a default or event of default
      under) the terms of such Assigned Contract or result in the creation of any
      security interest on any of the Assets under any such Assigned Contract or
      enable another party to such Assigned Contract to terminate the same or impose
      a
      penalty or additional payment obligations or accelerate any obligation of Seller
      or Buyer under any such Assigned Contract, and (ii) all necessary approvals,
      consents and waivers of all parties to such Assigned Contract have not been
      obtained at or prior to the Closing, then (A) this Agreement shall not
      constitute an agreement to assign or assume such Assigned Contract and such
      Assigned Contract shall not be assigned to or assumed by Buyer or be included
      in
      the Assets or the Assumed Liabilities, (B) Seller shall, following the Closing,
      use all reasonable efforts to assist Buyer in attempting to obtain such
      necessary approvals, consents and waivers, (C) Seller and Buyer shall, following
      the Closing, promptly execute all documents necessary to complete the assignment
      and assumption of such Assigned Contract if such approvals, consents and waivers
      are obtained, and (D) unless and until such approvals, consents and waivers
      are
      obtained and such assignment and assumption occurs, Seller and Buyer shall
      cooperate in entering into any reasonable arrangement designed to obtain for
      Buyer all benefits and privileges of such Assigned Contract including the
      holding by Seller of such benefits and privileges in trust for Buyer, while
      protecting Seller from the obligations of Seller first accruing under such
      Assigned Contract after the Closing Date and related to the period of time
      after
      the Closing Date under such Assigned Contract.

    

    (b) Attached
      hereto as Exhibit 16.1 is a service agreement between US Bancorp Piper
      Jaffray and Seller. The parties acknowledge that Section 9 thereof
      prohibits any assignment of such agreement or the subcontracting of services
      to
      be rendered by Seller to any other party, without the prior written consent
      of
      US Bancorp Piper Jaffray, which has not been obtained. Consequently, while
      such
      agreement is listed in Schedule 1.1(g) as an “Assigned Contract,” its assignment
      is subject to the terms of subsection (a) above. Further, Seller shall indemnify
      Buyer pursuant to Section 11 hereof against any claim alleged by US Bancorp
      Piper Jaffray to have been suffered by it as a consequence of such
      subcontracting in violation of the service agreement provided, however, such
      indemnity shall not extend to any failure by Buyer to perform in compliance
      with
      such agreement, with respect to liabilities and obligations arising thereunder
      and relating to services or obligations required to be performed under such
      agreement following the Closing Date, to the extent Buyer has been allowed
      to
      perform by US Bancorp Piper Jaffray. Buyer acknowledges that it has been
      informed by Seller that Seller has given notice to US Bancorp Piper Jaffray
      of
      Seller’s intent to terminate the services agreement, as provided
      therein.

    

    16.2 Non-compete
      Agreements.
      With
      respect to any non-compete, non-disclosure, confidentiality and non-solicitation
      agreements which Seller has executed with former or current employees, both
      parties covenant to reasonably cooperate with one another, regardless of which
      party retains ownership of any such contract, so as to allow the enforcement
      of
      the rights therein granted to Seller for the benefit of both Seller and Buyer,
      to the extent the same is commercially appropriate.

    

    
      
        
        

      

      
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    16.3 Telephony.
      Promptly following Closing, Buyer shall, with Seller’s cooperation, request that
      the providers of the telephony services listed in Schedule 1.1(h) change the
      account information relating thereto, such that Buyer is solely liable to such
      providers for services rendered following the Closing. If such 

    request
      is denied, then notwithstanding anything to the contrary herein, the telephony
      services shall not be transferred to Buyer hereunder.

    

    16.4 Removal.
      Buyer
      shall have 30 days from the Closing Date to remove at its expense any of the
      Assets located at Seller’s leased premises in the Golden Hills Business Park in
      Golden Valley Minnesota. Buyer shall be responsible for repairing any damage
      caused in connection with its removal of any of the Assets. If they are not
      timely removed, Seller shall be entitled to remove such Assets at Buyer’s
      expense.

    

    17. MISCELLANEOUS

    

    17.1 Assignment.
      Neither
      party shall be permitted to assign its rights in this Agreement without the
      prior written consent of the other party. The terms and provisions of this
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto, their successors and permitted assigns, and no person, firm or
      corporation other than the parties, their successors and assigns, shall acquire
      or have any rights under or by virtue of this Agreement. Notwithstanding the
      foregoing, either party shall be permitted to assign this Agreement in
      connection with the sale of substantially all of its assets to a single party,
      or by operation of law, including by merger. 

    

    17.2 Covenant
      of Further Assistance.
      Notwithstanding any provision herein to the contrary, without further
      consideration, the parties shall execute and deliver or make available to one
      another such further instruments, documents and/or files as are necessary to
      effectuate the terms of this Agreement.

    

    17.3 Survival
      of Representations and Warranties.
      All
      representations and warranties contained herein, and all other written
      representations and warranties of Buyer and Seller contained in the instruments
      executed in connection with the consummation of the transactions provided for
      herein, shall survive the execution and delivery of this Agreement and the
      consummation of the transactions contemplated hereby for a period of three
      years.

    

    17.4 Best
      Efforts Prior to Closing.
      Each of
      the parties shall take, or cause to be taken, all other commercially reasonable
      actions and do, or cause to be done, all other commercially reasonable things
      necessary, proper or advisable to permit the completion of the transactions
      contemplated by this Agreement in accordance with the terms hereof and to
      satisfy all the condition precedent to Closing, and shall cooperate with each
      other in connection therewith, including using all commercially reasonable
      efforts to obtain, prior to the Closing Date, any necessary consent to assign
      the Assigned Contracts, although Seller shall not be required to pay any amounts
      or incur any additional obligations in connection with any request it may make
      of any counterparty to the Assigned Contracts, to consent to the assignment
      of
      such contracts.

    

    17.5 Confidentiality;
      Public Announcements.
      The
      parties shall consult in advance on the timing and content of public
      announcements regarding the transactions contemplated under this Agreement,
      and
      subject to applicable law, rule or regulation, all such public announcements
      shall require the consent of the parties, which consent shall not be
      unreasonably withheld. Subject to 

    

    
      
        
        

      

      
        17

        
        

      

      
        
        

      

    

    

    any
      applicable law, rule or regulation, no public announcement shall be made
      concerning the negotiation or execution of this Agreement without the written
      consent of each party, which consent shall not unreasonably
      withheld.

    

    17.6 Notices.
      All
      notices, requests, demand and other communications hereunder shall be in writing
      (except as otherwise agreed upon between the parties as set forth in this
      Agreement), and shall be given by (i) a nationally recognized express
      delivery service which maintains delivery records, (ii) hand delivery, or
      (iii) certified or registered mail, postage prepaid, return receipt
      requested, to the parties at the following addresses, or at such other addresses
      as the parties may designate from time to time by written notice in the above
      manner:

    

    
      	
              If
                to Seller:

            	
              ClearOne
                Communications, Inc.

              1825
                Research Way

              Salt
                Lake City, Utah 84119

              Attention:
                Chief Executive Officer

              Telephone:801-975-7200

              Facsimile:801-977-0087

               

            
	
              With
                a copy to: (such copy not to constitute notice)

            	
              Parsons
                Behle & Latimer

              Attention:
                Geoffrey Mangum

              One
                Utah Center

              201
                South Main Street, Suite 1800

              P.O.
                Box 45898

              Salt
                Lake City, Utah 84145-0898

              Telephone:
                801-532-1234

              Fax:
                801-536-6111

               

            
	
              If
                to Buyer:

            	
              M:Space,
                Inc.

              901
                Marquette Ave. Suite 250

              Minneapolis,
                MN 55402

              Attention:
                Ryan Heining

               

            
	
              With
                a copy to: (such copy not to constitute notice)

            	
              Maslon
                Edelman Borman & Brand, LLP

              Attention:
                Shawn R. McIntee

              90
                South 7th
                Street

              3300
                Wells Fargo Center

              Minneapolis,
                MN 55402

              Telephone:
                612-672-8200

              Fax:
                612-672-8397

               

            

    

    

    17.7 Expenses.
      Except
      as provided in this section, each party to this Agreement shall pay its own
      costs and expenses (including attorneys’ fee and accountants’ fees) incurred in
      connection with the negotiation, execution and performance of this Agreement.
      Any sales, transfer, stamp or other like taxes applicable to the conveyance
      and
      transfer to Buyer of the Assets shall be borne and paid by Seller (in all events
      whether the foregoing are imposed on Buyer or Seller) to Buyer at Closing.
      If
      either party makes any payment of any fees or expenses that are to be borne
      by
      any other party, such other party shall reimburse the party making such payment
      on demand.

    

    
      
        
        

      

      
        18

        
        

      

      
        
        

      

    

    

    17.8 Risk
      of Loss.
      The
      risk of loss or damage by fire or other casualty to the Assets shall be upon
      Seller until the Closing and upon Buyer after the Closing.

    

    17.9 Entire
      Agreement.
      This
      Agreement, including the exhibits and schedules attached to this Agreement,
      constitutes the entire agreement and understanding between Seller and Buyer
      with
      respect to the sale and purchase of the Assets and the other transactions
      contemplated by this Agreement. All prior representations, understandings and
      agreements between the parties with respect to the purchase and sale of the
      Assets and the other transactions contemplated by this Agreement are superseded
      by the terms of this Agreement.

    

    17.10 Choice
      of Law and Venue.
      This
      Agreement shall be construed and interpreted in accordance with the laws of
      the
      State of Minnesota, without regard to its choice of law provisions, as though
      all acts and omissions related to this Agreement occurred in the State of
      Minnesota. All disputes related to or arising under this Agreement must be
      brought in either the United States District Court for the District of Minnesota
      or the State of Minnesota’s Fourth Judicial District Court with each party
      consenting to the exclusive jurisdiction of such courts and waiving any personal
      jurisdiction defenses. Each party hereby (i) waives any objection which it
      might
      have now or hereafter to the foregoing venue of any such litigation, action
      or
      proceeding, (ii) irrevocably submits to the exclusive jurisdiction of any such
      court set forth above in any such litigation, action or proceeding, and (iii)
      waives any claim or defense of inconvenient forum. Each party hereby consents
      to
      service of process by registered mail, return receipt requested, at such party’s
      address set forth in this Agreement (as modified by written notice of a party
      from time to time) and expressly waives the benefit of any contrary provision
      of
      law.

    

    17.11 Injunctive
      Relief.
      The
      parties hereto acknowledge and agree that the other parties would be damaged
      irreparably in the event any of the provisions of this Agreement are not
      performed substantially in accordance with their specific terms. Accordingly,
      each of the parties agrees that the other parties shall be entitled to an
      injunction or injunctions to prevent breaches of the provisions of this
      Agreement and to enforce specifically the substantial performance of this
      Agreement and the terms and provisions hereof.

    

    17.12 Severability.
      The
      provisions of this Agreement shall, where possible, be interpreted so as to
      sustain their legality and enforceability, and for that purpose the provisions
      of this Agreement shall be read as if they cover only the specific situation
      to
      which they are being applied. The invalidity or unenforceability of any
      provision of this Agreement in a specific situation shall not affect the
      validity or enforceability of that provision in other situations or of other
      provisions of this Agreement.

    

    17.13 Counterparts.
      This
      Agreement may be executed in counterparts and by facsimile, each of which shall
      be considered an original.

    

    17.14 Knowledge
      Convention.
      Whenever any statement herein or in any schedule, exhibit, certificate or other
      document delivered to any party pursuant to this Agreement is made “to Seller’s
      or Buyer’s knowledge” or “to the best of Seller’s or Buyer’s knowledge” or words
      of similar intent or effect of any party or its representative, such statement
      shall be deemed to be made to the actual knowledge of a party’s officers at the
      vice president level and above as of the Effective Date. 

    

    
      
        
        

      

      
        19

        
        

      

      
        
        

      

    

    

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed and
      delivered by their duly authorized officers as of the date and year first above
      written.

    

    ClearOne
      Communications, Inc.

    

    /s/
      Mike Keough

    By Mike
      Keough

    

    Its CEO/President

    

    

    M:SPACE,
      Inc.

    

    /s/
      Ryan Heining

     

    By
       Ryan
      Heining

    

    Its PresidentExhibit 10.10

    Exhibit
      10.10

    
 

    STOCK
      PURCHASE AGREEMENT

    

    This
      Stock Purchase Agreement (this “Agreement”)
      is
      entered into as of March 4th,
      2005,
      between 6351352
      Canada Inc.,
      a Canada
      corporation (“Buyer”),
      and
      Gentner Ventures, Inc., a Utah corporation (“Seller”).
      Buyer
      and Seller are referred to collectively herein as the “Parties.”

     

    Seller
      owns all of the outstanding capital stock of ClearOne Communications of Canada,
      Inc., a New Brunswick corporation (“Target”),
      and
      Target owns all of the outstanding capital stock of Stechyson Electronics Ltd.,
      a Canada corporation (“Sub”).

     

    This
      Agreement contemplates a transaction in which Buyer will purchase from Seller,
      and Seller will sell to Buyer, all of the outstanding capital stock of Target
      in
      return for the Purchase Price (as hereinafter defined).

     

    Now,
      therefore, in consideration of the premises and the mutual promises herein
      made,
      and in consideration of the representations, warranties, and covenants herein
      contained, the Parties agree as follows.

     

    1. Definitions.

     

    “$”
means
      United States dollars.

     

    “Adverse
      Consequences”
means
      all actions, suits, proceedings, hearings, investigations, charges, complaints,
      claims, demands, injunctions, judgments, orders, decrees, rulings, damages,
      dues, penalties, fines, costs, reasonable amounts paid in settlement,
      liabilities, obligations, taxes, liens, losses, expenses, and fees, including
      court costs and reasonable attorneys’ fees and expenses, but does not include
      special, consequential or punitive damages.

     

    “Affiliate”
has
      the
      meaning set forth in Rule
      12b-2 of the regulations promulgated under the Securities Exchange
      Act.

     

    “Business”
means
      the business currently carried on by the Target including procurement and sale
      of room based audio visual equipment and post sales equipment service and
      support.  

     

    “Buyer”
has
      the
      meaning set forth in the preface above.

     

    “Change
      of Control Transaction”
means
      (A) a transaction in which any person (as that term is used in Rule 13d-5 under
      the Securities Exchange Act of 1934) or group (as that term is used in Sections
      3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934) other than Buyer
      becomes the beneficial owner of securities of Sub representing 50% or more
      of
      the combined voting power of Sub’s then outstanding securities; (B) a merger or
      consolidation of Sub with any other corporation, other than (i) a merger or
      consolidation which would result in the voting securities of Sub outstanding
      immediately prior thereto continuing to represent (either by remaining
      outstanding or by being converted into voting securities of the surviving
      entity) at least 50% of the combined voting power of the voting securities
      of
      Sub or such surviving entity outstanding immediately after such merger or
      consolidation, or (ii) a merger or consolidation effected to implement a
      recapitalization of Sub (or similar transaction) in which no person

    

    
      
        
        

      

      
        1

        
        

      

      
        
        

      

    

    

    acquires
      more than 50% of the combined voting power of Sub’s then outstanding securities;
      or (C) the sale or disposition by Sub of all or substantially all of its
      assets.

    

    “Closing”
has
      the
      meaning set forth in Section
      2
      below.

     

    “Closing
      Amount”
has
      the
      meaning set forth in Section
      2
      below.

     

    “Closing
      Date”
has
      the
      meaning set forth in Section
      2
      below.

     

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

     

    “Confidential
      Information”
means
      any information concerning the businesses and affairs of Target and Sub that
      is
      not already generally available to the public.

     

    “Determination
      Date”
means
      December 31, 2004.

     

    “Disclosure
      Schedule”
has
      the
      meaning set forth in Section 4
      below.

     

    “Earn
      Out Amount”
has
      the
      meaning set forth in Section
      2
      below.

     

    “Earn
      Out Calculation Period”
has
      the
      meaning set forth in Section
      2
      below.

     

    “Earn
      Out Period”
has
      the
      meaning set forth in Section
      2
      below.

     

    “Environmental,
      Health, and Safety Requirements”
shall
      mean all Canadian federal, provincial, or local statutes, statutes, regulations,
      and ordinances concerning public health and safety, worker health and safety,
      and pollution or protection of the environment, including all those relating
      to
      the presence, use, production, generation, handling, transportation, treatment,
      storage, disposal, distribution, labeling, testing, processing, discharge,
      release, threatened release, control, or cleanup of any hazardous materials,
      substances, or wastes, as such requirements are enacted and in effect on or
      prior to the Closing Date.

     

    “Gross
      Revenues”
means
      the aggregate of all revenue in the ordinary course of the
      Business.

     

    “Income
      Tax”
means
      any federal, provincial, state, local, provincial or foreign income tax measured
      by or imposed on net income, including any interest, penalty, or addition
      thereto, whether disputed or not.

     

    “Income
      Tax Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Income Taxes, including any schedule or attachment
      thereto.

     

    “Indemnified
      Party”
has
      the
      meaning set forth in Section
      8(e)(i)
      below.

     

    “Indemnifying
      Party” has the meaning set forth in Section
      8(e)(i)
      below.

    

    
      
        
        

      

      
        2

        
        

      

      
        
        

      

    

    

    “Knowledge”
means
      actual knowledge without
      independent investigation. Knowledge, with respect to a particular fact or
      matter, will be imputed to the Seller if any individual who is serving as an
      officer of any of Seller, Target, or Sub has Knowledge of such fact
      or
      matter.

     

    “Lease”
means
      that certain real property lease dated August 1, 2000 between Commercial
      Property Developments and Sub pertain to premises located in the City of Nepean,
      Province of Ontario.

     

    “Lien”
means
      any mortgage, pledge, lien, encumbrance, charge, or other security interest,
      other than (a) liens for taxes not yet due and payable, (b) purchase money
      liens
      and liens securing rental payments under capital lease arrangements, and (c)
      other liens arising in the Ordinary Course of Business and not incurred in
      connection with the borrowing of money.

     

    “Material
      Adverse Effect”
or
      “Material
      Adverse Change”
means
      any effect or change that would be materially adverse to the Business
      of
      Target and Sub, taken as a whole, or on the ability of any Party to consummate
      timely the transactions contemplated hereby; provided that none of the following
      shall be deemed to constitute, and none of the following shall be taken into
      account in determining whether there has been, a Material Adverse Effect or
      Material Adverse Change: (a) any adverse change, event, development, or effect
      arising from or relating to (1) general business or economic conditions,
      including such conditions related to the Business
      of
      Target and Sub, (2) national or international political or social conditions,
      including the engagement by the United States or Canada in hostilities, whether
      or not pursuant to the declaration of a national emergency or war, or the
      occurrence of any military or terrorist attack upon Canada or the United States,
      or any of its territories, possessions, or diplomatic or consular offices or
      upon any military installation, equipment or personnel of the United States
      or
      Canada, (3) financial, banking, or securities markets (including any disruption
      thereof and any decline in the price of any security or any market index),
      (4)
      changes in Canadian or United States generally accepted accounting principles,
      (5) changes in law, rules, regulations, orders, or other binding directives
      issued by any governmental entity, or (6) the taking of any action contemplated
      by this Agreement and the other agreements contemplated hereby, and
      (b)
      any
existing
      event, occurrence, or circumstance with respect to which Buyer has knowledge
      as
      of the date hereof, and (c) any adverse
      change in or effect on the Business
      of
      Target and Sub that is cured by Seller before the earlier of (1) the Closing
      Date and (2) the date on which this Agreement is terminated pursuant to
Section
      9
      hereof.

     

    “Note”
has
      the
      meaning set forth in Section
      2(b)(iii).

     

    “Ordinary
      Course of Business”
means
      the ordinary course of business consistent with past custom and practice
      (including with respect to quantity and frequency).

     

    “Party”
has
      the
      meaning set forth in the preface above.

     

    “Person”
means
      an individual, a partnership, a corporation, a limited liability company, an
      association, a joint stock company, a trust, a joint venture, an unincorporated
      organization, any other business entity or a governmental entity (or any
      department, agency, or political subdivision thereof).

    

    
      
        
        

      

      
        3

        
        

      

      
        
        

      

    

    

    “Purchase
      Price”
has
      the
      meaning set forth in Section 2(b)
      below.

     

    “Securities
      Act”
means
      the Securities
      Act of
      1933,
      as amended.

     

    “Securities
      Exchange Act”
means
      the Securities Exchange Act of 1934, as amended.

    

     “Seller”
has
      the
      meaning set forth in the preface above.

     

    “Special
      Accountants”
has
      the
      meaning set forth in Section
      2(c)(ii)
      below.

     

    “Sub”
has
      the
      meaning set forth in the preface above.

     

    “Subsidiary”
means,
      with respect to any Person, any corporation, limited liability company,
      partnership, association, or other business entity of which (i) if a
      corporation, a majority of the total voting power of shares of stock entitled
      (without regard to the occurrence of any contingency) to vote in the election
      of
      directors, managers, or trustees thereof is at the time owned or controlled,
      directly or indirectly, by that Person or one or more of the other Subsidiaries
      of that Person or a combination thereof or (ii) if a limited liability company,
      partnership, association, or other business entity (other than a corporation),
      a
      majority of partnership or other similar ownership interest thereof is at the
      time owned or controlled, directly or indirectly, by that Person or one or
      more
      Subsidiaries of that Person or a combination thereof and for this purpose,
      a
      Person or Persons owns a majority ownership interest in such a business entity
      (other than a corporation) if such Person or Persons shall be allocated a
      majority of such business entity’s gains or losses or shall be or control any
      managing director or general partner of such business entity (other than a
      corporation). The term “Subsidiary” shall include all Subsidiaries of such
      Subsidiary.

     

    “Target”
has
      the
      meaning set forth in the preface above.

     

    “Target
      Share”
means
      any share of the common stock, no par value, of Target.

     

    “Tax”
or
      “Taxes”
means
      any federal,
      provincial, state, local,
      provincial or foreign income,
      gross receipts, license,
      payroll, employment, excise, severance, stamp, occupation, premium, windfall
      profits, environmental (including
      taxes under Code §59A or a similar provision under Canadian federal tax
      legislation),
      customs
      duties, capital stock, franchise, profits, withholding, social security (or
      similar), unemployment, disability, real property, personal property, sales,
      use, transfer, registration, value added, alternative or add-on
      minimum, estimated,
      or other tax of
      any
      kind whatsoever, including
      any
      interest, penalty, or addition thereto, whether disputed or not.

     

    “Tax
      Return”
      means any
      return, declaration, report, claim
      for
      refund, or information return or statement relating to Taxes, including any
      schedule or attachment thereto, and including any amendment
      thereof.

    

    “Third
      Party Claim”
has
      the
      meaning set forth in Section
      8(e)(i)
      below.

    

    
      
        
        

      

      
        4

        
        

      

      
        
        

      

    

    

    2. Purchase
      and Sale of Target Shares.

     

    (a) Basic
      Transaction.
      On and
      subject to the terms and conditions of this Agreement, Buyer agrees to purchase
      from Seller, and Seller agrees to sell to Buyer, all of Seller’s Target Shares
      for the consideration specified below in this Section
      2.

     

    (b) Purchase
      Price.
      The
      consideration to be paid by Buyer to Seller for Seller’s Target Shares (the
“Purchase Price”) shall be paid by the Buyer in the following
      manner:

     

    (i) By
      delivery to Seller of a deposit of US$25,000
      upon execution of this Agreement;

     

    (ii) By
      delivery to the Seller at Closing of US$175,000
      in cash
      (the “Closing Amount”), payable by wire transfer or delivery of other
      immediately available funds.

    (iii) By
      delivery by the Buyer to the Seller of a secured promissory note in the form
      attached hereto as Exhibit A
      (the
“Note”), the principal amount of which shall equal to US$1,256,000;
      and

     

    (iv) By
      payment of the Earn Out Amounts described in Section
      2(c)
      below.

     

    (c) Earn
      Out Amounts.
      

     

    (i) Earn
      Out Periods and Amounts.
      For
      each consecutive 3-month period (each an “Earn
      Out
      Calculation Period”) during a period of 5
      years
      commencing on January 1, 2006 (the “Earn Out Period”), Buyer shall pay to Seller
      an earn out amount (“Earn Out Amount”) equal to 4%
      of
      Sub’s Gross Revenues the first year and 3% of Sub’s Gross Revenues for each year
      thereafter that have accrued
      for the
      same period, and each Earn Out Amount payable hereunder shall be paid by Buyer
      to Seller in
      United
      States dollars within
      60
      days following the end of any Earn Out Calculation Period, such amount payable
      by wire transfer as per instructions provided to Buyer by Seller or its
      Affiliate. It
      is
      understood and agreed that Earn Out Amounts will be initially calculated in
      Canadian dollars and such amounts will be converted into United States dollars
      at the exchange rate quoted by the Bank of Canada on the last business day
      of
      each relevant Earn Out Calculation Period.

     

    (ii) Records
      and Verification of Earn Out Amounts.
      Buyer
      shall provide to Seller such accounting and other records as Seller may request
      from time to time to verify the computation of Sub’s Gross
      Revenues
      for any
      Earn Out Calculation Period. In the event that Seller disputes the amount of
      an
      Earn Out Amount for a specific Earn Out Calculation Period, Seller shall
      promptly notify Buyer of such dispute. If within 30 days of such notification,
      Buyer and Seller are unable to reach agreement with respect to such amount,
      the
      disputed Earn Out Amount shall be submitted to a mutually agreeable third party
      firm of chartered accountants (“Special Accountants”) for determination, whose
      determination shall be binding and conclusive upon the parties. If
      the
      Special
      Accountants determine that the disputed Earn Out Amount has 

    

    
      
        
        

      

      
        5

        
        

      

      
        
        

      

    

    

    been
      understated by ten (10%) percent or more, then Buyer shall pay
      the
      Special Accountant’s fees, costs and expenses and shall promptly remit the
      deficiency in the Earn Out Amount to Seller. If the Special Accountants
      determine that the disputed Earn Out Amount has not been understated or has
      been
      understated by less than ten (10%) percent, then Seller shall pay
      the
      Special Accountant’s fees, costs and expenses, and Buyer shall promptly remit
      any deficiency in the Earn Out Amount to Seller. 

     

    (iii) Change
      of Control Transaction.
      In the
      event of a Change of Control Transaction before the end of the Earn Out Period,
      then Buyer shall provide written notice to Seller prior to the effective date
      of
      such Change of Control Transaction and shall pay to Seller, within 10 days
      following such effective date, a sum equal to the aggregate Earn Out Amounts
      that would have been paid in respect of the Earn Out Calculation Periods
      remaining in the Earn Out Period. Any Earn Out Amount payable pursuant to this
      Section
      2(c)(iii) shall be based on Sub’s projected Gross
      Revenues
      which
      shall equal, with respect to each Earn Out Calculation Period, Sub’s average
Gross
      Revenues
      for the
      12-month period prior to the commencement each Earn Out Calculation Period,
      plus
      a cumulative premium of 10% for each year remaining in the Earn Out Period
      at
      the time the Change of Control Transaction is concluded.

    

    (iv) Guarantee.
      Buyer
      agrees that it shall cause Sub to guarantee the obligations of Buyer pursuant
      to
      this Section 2(c) and the Note (the “Sub” Guarantee”).

    

    (v) Security
      Interest.
      Buyer
      agrees that any Earn Out Amounts payable hereunder and under the Sub Guarantee
      shall be secured by the charges on the assets of Buyer and Sub,
      respectively.

     

    (d) Closing.
      The
      closing of the transactions contemplated by this Agreement (the “Closing”) shall
      take place at the offices of Parsons Behle & Latimer, in Salt Lake City,
      Utah or at such other place as the Parties may agree, commencing at such time
      and on such date as Buyer and Seller may mutually determine (the “Closing
      Date”); provided, however, that the Closing Date shall be no later than March
      4,
      2005.

     

    (e) Deliveries
      at Closing.
      At the
      Closing, (i) Seller shall deliver to Buyer the various certificates,
      instruments,
      and
      documents referred to in Section
      7(a)
      below, (ii) Buyer will deliver to Seller the various certificates, instruments,
      and documents referred to in Section
      7(b)
      below, (iii) Seller will deliver to Buyer one or more stock certificates
      representing all of Seller’s Target Shares, endorsed in blank or accompanied by
      duly executed stock powers, and (iv) Buyer will deliver to
      Seller the
      Closing Amount specified in Section
      2(b)
      above.

     

    3. Representations
      and Warranties Concerning Transaction.

     

    (a) Seller’s
      Representations and Warranties.
      Seller
      represents and warrants to Buyer that the statements contained in this
Section
      3(a)
      are
      correct and complete as of the date of this Agreement and will be correct and
      complete as of the Closing Date (as though made then and as though the Closing
      Date were substituted for the date of this Agreement throughout this
Section
      3(a)).

    

    
      
        
        

      

      
        6

        
        

      

      
        
        

      

    

    

    (i) Organization
      of Seller.
      Seller
      is duly organized, validly existing, and in good standing under the laws of
      the
      jurisdiction of its incorporation.

     

    (ii) Authorization
      of Transaction.
      Seller
      has full power and authority (including full corporate or other entity power
      and
      authority) to execute and deliver this Agreement and to perform its obligations
      hereunder. This Agreement constitutes the valid and legally binding obligation
      of Seller, enforceable in accordance with its terms and conditions.
      Seller
      need not give any notice to, make any filing with, or obtain any authorization,
      consent, or approval of any government or governmental agency in order to
      consummate the transactions contemplated by this Agreement. The execution,
      delivery and performance of this Agreement and all other agreements contemplated
      hereby have been duly authorized by Seller.

     

    (iii) Non-contravention.
      Neither
      the execution and the delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will (A) violate any constitution, statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
      restriction of any government, governmental agency, or court to which Seller
      is
      subject or, any provision of its charter, bylaws, or other governing documents,
      or (B) conflict with, result in a breach of, constitute a default under, result
      in the acceleration of, create in any party the right to accelerate, terminate,
      modify, or cancel, or require any notice under any agreement, contract, lease,
      license, instrument, or other arrangement to which Seller is a party or by
      which
      it is bound or to which any of its assets is subject. 

     

    (iv) Brokers’
      Fees.
      Seller
      has no liability or obligation to pay any fees or commissions to any broker,
      finder, or agent with respect to the transactions contemplated by this
      Agreement.

     

    (v) Target
      Shares.
      Seller
      holds of record and owns beneficially all of the issued and outstanding Target
      Shares, free and clear of any encumbrances or restrictions on transfer (other
      than any restrictions under the Securities Act and applicable state and
      provincial securities laws). Seller is not a party to any option, warrant,
      purchase right, or other contract or commitment that could require Seller to
      sell, transfer, or otherwise dispose of any capital stock of Target (other
      than
      this Agreement). Seller is not a party to any voting trust, proxy, or other
      agreement or understanding with respect to the voting of any capital stock
      of
      Target. 

     

    (b) Buyer’s
      Representations and Warranties.
      Buyer
      represents and warrants to Seller that the statements contained in this
Section
      3(b)
      are
      correct and complete as of the date of this Agreement and will be correct and
      complete as of the Closing Date (as though made then and as though the Closing
      Date were substituted for the date of this Agreement throughout this
Section
      3(b)).

     

    (i) Accredited
      Investor.
      Buyer
      is purchasing the Target Shares as principal and is an “accredited investor” as
      defined in Ontario Securities Commission Rule 45-501.

    

    
      
        
        

      

      
        7

        
        

      

      
        
        

      

    

    

    

    (ii) Organization
      of Buyer.
      Buyer
      is a corporation (or other entity) duly organized, validly existing, and in
      good
      standing under the laws of the jurisdiction of its incorporation (or other
      formation).

     

    (iii) Authorization
      of Transaction.
      Buyer
      has full power and authority (including full corporate or other entity power
      and
      authority) to execute and deliver this Agreement and to perform its obligations
      hereunder. This Agreement constitutes the valid and legally binding obligation
      of Buyer, enforceable in accordance with its terms and conditions.
      Buyer
      need not give any notice to, make any filing with, or obtain any authorization,
      consent, or approval of any government or governmental agency in order to
      consummate the transactions contemplated by this Agreement. The execution,
      delivery and performance of this Agreement and all other agreements contemplated
      hereby have been duly authorized by Buyer.

     

    (iv) Non-contravention.
      Neither
      the execution and the delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will (A) violate any constitution, statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
      restriction of any government, governmental agency, or court to which Buyer
      is
      subject or any provision of its charter, bylaws, or other governing documents
      or
      (B) conflict with, result in a breach of, constitute a default under, result
      in
      the acceleration of, create in any party the right to accelerate, terminate,
      modify, or cancel, or require any notice under any agreement, contract, lease,
      license, instrument, or other arrangement to which Buyer is a party or by which
      it is bound or to which any of its assets is subject.

     

    (v) Brokers’
      Fees.
      Buyer
      has no liability or obligation to pay any fees or commissions to any broker,
      finder, or agent with respect to the transactions contemplated by this
      Agreement.

     

    (vi) Investment.
      Buyer
      is not acquiring the Target Shares with a view to or for sale in connection
      with
      any distribution thereof within the meaning of the Securities Act.

     

    4. Representations
      and Warranties Concerning Target and Sub.
      Seller
      represents and warrants to Buyer that the statements contained in this
Section
      4
      are
      correct and complete as of the date of this Agreement and will be correct and
      complete as of the Closing Date (as though made then and as though the Closing
      Date were substituted for the date of this Agreement throughout this
Section
      4),
      except as set forth in the disclosure schedule,
      delivered
      by Seller to Buyer on the date hereof and initialed by the Parties (the
“Disclosure Schedule”).

     

    (a) Organization,
      Qualification, and Corporate Power.
      Each of
      Target and Sub are corporations duly organized, validly existing, and in good
      standing under the laws of the jurisdiction of their incorporation. Each of
      Target and Sub are duly authorized
      to
      conduct Business
      and are
      in good standing under the laws of each jurisdiction where such qualification
      is
      required,
      except
      where the lack of such qualification would not have a Material Adverse
      Effect.
      Each of
      Target and Sub have full corporate power and authority to carry on the
      businesses in 

    

    
      
        
        

      

      
        8

        
        

      

      
        
        

      

    

    

    which
      they are engaged
      and to own and use the properties owned and used by them.
      Section
      4(a)
      of
      the Disclosure Schedule lists the directors and officers of Target and
      Sub

     

    (b) Capitalization.
      The
      entire authorized capital stock of Target consists of an unlimited number of
      Target Shares, of which 100 Target Shares are issued and outstanding. All of
      the
      issued and outstanding Target Shares are owned by Seller, have been duly
      authorized, are validly issued, and are fully paid, and non-assessable. There
      are no outstanding or authorized options or rights that could require Target
      to
      issue, sell, or otherwise cause to become outstanding any of its capital stock.
      There are no outstanding or authorized stock appreciation, phantom stock, profit
      participation, or similar rights with respect to Target. The authorized capital,
      as well as the issued and outstanding shares of Sub (the “Sub Shares”), are as
      set out in Schedule 1 hereto. All of the Sub Shares are
      owned
      by Target, have been duly authorized, are validly issued, and are fully paid,
      and non-assessable. There are no outstanding or authorized options or rights
      that could require Sub to issue, sell, or otherwise cause to become outstanding
      any of its capital stock. There are no outstanding or authorized stock
      appreciation, phantom stock, profit participation, or similar rights with
      respect to Sub

     

    (c) Non-contravention.
      To the
      Knowledge of the Seller, neither the execution and the delivery of this
      Agreement, nor the consummation of the transactions contemplated hereby, will
      violate any contract,
      constitution,
      statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
      or other restriction of any government,
      governmental agency, party , or court to which Target and Sub are subject or
      any
      provision of the articles
      or
      bylaws of Target and Sub,
      except
      where the violation would not have a Material Adverse Effect.
      To the
      Knowledge of Seller,
      neither
      Target nor Sub needs to give any notice to, make any filing with, or obtain
      any
      authorization, consent, or
      approval of any
      government, governmental agency or party in order for the Parties to consummate
      the transactions contemplated by this Agreement,
      except
      where the failure to give notice, to file, or to obtain any authorization,
      consent, or approval would not have a Material Adverse Effect

     

    (d) Brokers’
      Fees.
      Neither
      Target nor Sub has any liability or obligation to pay any fees or commissions
      to
      any broker, finder, or agent with respect to the transactions contemplated
      by
      this Agreement.

     

    (e) Title
      to Tangible Assets.
      Target
      and Sub have good
      title
      to, or a valid leasehold interest in, the material
      tangible
      assets they use regularly
      in
      the
      conduct of their Business.

     

    (f) Subsidiaries.
      Target
      has no Subsidiaries other than Sub. Neither Target nor Sub owns or has any
      right
      to acquire, directly or indirectly, any outstanding capital stock of, or other
      equity interests in, any Person.

    

    (g) Tax
      Matters.
      Target
      and Sub have filed all Income Tax, sales tax, employment and payroll related
      tax
      that they were required to file, and have paid all Taxes shown thereon as owing,
      except where the failure to file Income Tax Returns or to pay Income Taxes
      would
      not have a Material Adverse Effect.

    

    
      
        
        

      

      
        9

        
        

      

      
        
        

      

    

    

    (h) Litigation.
      Section
      4(h)
      of the
      Disclosure Schedule sets forth each instance in which Target or Sub (i) is
      subject to any outstanding injunction, judgment, order, decree, ruling, or
      charge or (ii) is a party to any action, suit, proceeding, hearing, or
      investigation of, in, or before any court or quasi-judicial or administrative
      agency of any federal, state, local, or foreign jurisdiction,
      except
      where the injunction, judgment, order, decree, ruling, action, suit, proceeding,
      hearing, or investigation would not have a Material Adverse Effect.

     

    (i) Environmental,
      Health, and Safety Matters.
      To the
      Knowledge
      of Seller, Target and Sub are in compliance with Environmental, Health, and
      Safety Requirements, except for such non-compliance as would not have a Material
      Adverse Effect.

     

    (j) Disclaimer
      of Other Representations and Warranties.
      Except
      as expressly set forth in Section 3 and this Section 4, Seller makes no
      representation or warranty, express or implied, at law or in equity, in respect
      of Target or Sub or any of their respective assets, liabilities or operations,
      including with respect to merchantability or fitness for any particular purpose,
      and any such other representations or warranties are hereby expressly
      disclaimed. Buyer hereby acknowledges and agrees that, except to the extent
      specifically set forth in Section 3 and this Section 4, Buyer is purchasing
      the
      Target Shares on an “as-is, where-is” basis.

     

    5. Pre-Closing
      Covenants.
      The
      Parties agree as follows with respect to the period between the execution of
      this Agreement and the Closing.

     

    (a) General.
      Each of
      the Parties will use his, her, or its reasonable best efforts to take all action
      and to do all things necessary in order to consummate and make effective the
      transactions contemplated by this Agreement (including satisfaction, but not
      waiver, of the Closing conditions set forth in Section
      7
      below).

     

    (b) Notices
      and Consents.
      Each of
      the Parties will (and Seller will cause Target and Sub to) give any notices
      to,
      make any filings with, and use its reasonable best efforts to obtain any
      authorizations, consents, and approvals of governments and governmental agencies
      required in connection with the matters referred to in Section
      3(a)(ii),
      Section
      3(b)(ii)
      and Section
      4(d)
      above.

     

    (c) Operation
      of Business.
      Seller
      will not cause or permit Target or Sub to engage in any practice, take any
      action, or enter into any transaction outside the Ordinary Course of
      Business.

     

    (d) Notice
      of Developments.

     

    (i) Seller
      shall
      notify
      Buyer of
      any
      development causing a breach of any of the representations and warranties in
      Section
      4
      above.
      Unless Buyer has the right to terminate this Agreement pursuant to Section
      9(a)(ii)
      below by reason of the development and exercises that right within the period
      of
      5 business days referred to in Section
      9(a)(ii)
      below, the written notice pursuant to this Section
      5(d)(i)
      will be deemed to have amended the Disclosure Schedule, to have qualified the
      representations and warranties contained in §4 above, and to have 

    

    
      
        
        

      

      
        10

        
        

      

      
        
        

      

    

    

    cured
      any
      misrepresentation or breach of warranty that otherwise might have existed
      hereunder by reason of the development.

     

    (ii) Each
      Party will give prompt written notice to the others of any material adverse
      development causing a breach of any of his or its own representations and
      warranties in §3 above. No disclosure by any Party pursuant to this Section
      5(d)(ii),
      however, shall be deemed to amend or supplement the Disclosure Schedule or
      to
      prevent or cure any misrepresentation or breach of warranty.

     

    (e) Treatment
      of Confidential Information.
      Irrespective of any terms and conditions of any nondisclosure agreement entered
      into between Buyer and Seller or its Affiliate, Buyer will treat and hold as
      such any Confidential Information it receives from any of Seller, Target or
      Sub
      in the course of any due diligence review conducted by it in anticipation of
      the
      transactions contemplated by this Agreement, will not use any of the
      Confidential Information except in connection with this Agreement, and if this
      Agreement is terminated for any reason whatsoever, will return to Seller, Target
      and Sub all tangible embodiments (and all copies) of the Confidential
      Information which are in its possession.

     

    6. Post-Closing
      Matters.
      

     

    (a) General.
      In case
      at any time after the Closing any further action is necessary to carry out
      the
      purposes of this Agreement, including the specific matters referred to in
Section
      6(b)-(d)
      and any Canadian tax matters, each of the Parties will take such further action
      (including the execution and delivery of such further instruments and documents)
      as any other Party reasonably may request, all at the sole cost and expense
      of
      the requesting Party (unless the requesting Party is entitled to indemnification
      therefor under Section
      8
      below).

     

    (b) Security
      Filings.
      Buyer
      agrees to execute, and cause Sub to execute, and cooperate with Seller in filing
      any and all appropriate documentation to secure financing statements and all
      other forms and documentation Seller deems necessary to create, preserve,
      perfect or otherwise protect the security interests created in connection with
      Buyer’s obligations pursuant to the Note and under §2(c), and Sub’s obligations
      under the Sub Guarantee, which documentation shall be in form acceptable to
      Seller, in Seller’s sole and absolute discretion..

    

    (c) Name
      Change of Target.
      Buyer
      agrees to cause Target to change its name immediately following Closing, to
      cease use of the name “ClearOne” or any logos, trade-marks or derivatives
      thereof in the representation or conduct of its business and to file articles
      of
      amendment and such other documentation as is necessary to effect such name
      change with the Director under the Business
      Corporations Act
      (New
      Brunswick), and to register such name change with the Canada Revenue Agency
      and
      all other appropriate Canadian government entities.

     

    (d) Non-Compete.
      For a
      period of three years, the Seller shall not, either directly or indirectly
      as a
      stockholder, investor or partner (i) participate in the Business except as
      a
      manufacturing reseller. This paragraph does not prevent seller from selling
      its
      products through normal distributor and reseller relationships nor does it
      prevent seller from performing post sales 

    

    
      
        
        

      

      
        11

        
        

      

      
        
        

      

    

    

    equipment
      service and support or to provide maintenance contracts directly or through
      those distributor and reseller relationships.

    

    7. Conditions
      to Obligation to Close.

     

    (a) Conditions
      to Buyer’s Obligation.
      Buyer’s
      obligation to consummate the transactions to be performed by it in connection
      with the Closing is subject to satisfaction of the following
      conditions:

     

    (i) the
      representations and warranties set forth in Section
      3(a)
      and
Section
      4
      above
      shall be true and correct in all material respects at and as of the Closing
      Date, except to the extent that such representations and warranties are
      qualified by terms such as “material” and “Material Adverse Effect,” in which
      case such representations and warranties shall be true and correct in all
      respects at and as of the Closing Date;

     

    (ii) Seller
      shall have performed and complied with all of its covenants hereunder in all
      material respects through the Closing, except to the extent that such covenants
      are qualified by terms such as “material” and “Material Adverse Effect,” in
      which case Seller shall have performed and complied with all of such covenants
      in all respects through the Closing;

     

    (iii) there
      shall not be any injunction, judgment, order, decree, ruling, or charge in
      effect preventing consummation of any of the transactions contemplated by this
      Agreement;

     

    (iv) Seller
      shall have delivered to Buyer a certificate to the effect that each of the
      conditions specified above in Section
      7(a)(i)-(iii)
      is satisfied in all respects;

     

    (v) the
      Parties, Target, and Sub shall have received any authorizations, consents
      and
      approvals of governments and governmental agencies referred to in Section
      3(a)(ii),
      Section
      3(b)(ii),
      and Section
      4(c)
      above; 

     

    (vi) all
      actions to be taken by Seller in connection with consummation of the
      transactions contemplated hereby and all certificates, opinions, instruments,
      and other documents required to effect the transactions contemplated hereby,
      including resignations of current directors and officers of Target and Sub,
      will
      be reasonably satisfactory in form and substance to Buyer.

     

    Buyer
      may
      waive any condition specified in this Section
      7(a)
      if
      it executes a writing so stating at or prior to the Closing.

     

    (b) Conditions
      to Seller’s Obligation.
      Seller’s obligation to consummate the transactions to be performed by it in
      connection with the Closing is subject to satisfaction of the following
      conditions:

     

    (i) the
      representations and warranties set forth in Section
      3(b)
      above shall be true and correct in all material respects at and as of the
      Closing Date, except to the extent 

    

    
      
        
        

      

      
        12

        
        

      

      
        
        

      

    

    

    that
      such
      representations and warranties are qualified by terms such as “material” and
“Material Adverse Effect,” in which case such representations and warranties
      shall be true and correct in all respects at and as of the Closing
      Date;

     

    (ii) Buyer
      shall have performed and complied with all of its covenants hereunder in all
      material respects through the Closing, except to the extent that such covenants
      are qualified by terms such as “material” and “Material Adverse Effect,” in
      which case Buyer shall have performed and complied with all of such covenants
      in
      all respects through the Closing;

     

    (iii) there
      shall not be any injunction, judgment, order, decree, ruling, or charge in
      effect preventing consummation of any of the transactions contemplated by this
      Agreement;

     

    (iv) Buyer
      shall have delivered to Seller a certificate to the effect that each of the
      conditions specified above in Section
      7(b)(i)-(iii)
      is satisfied in all respects;

     

    (v) the
      Parties, Target, and Sub shall have received any authorizations, consents,
      and
      approvals of governments and governmental agencies referred to in Section
      3(a)(ii),
      Section
      3(b)(ii),
      and Section
      4(c)
      above; and

     

    (vi) all
      actions to be taken by Buyer in connection with consummation of the transactions
      contemplated hereby and all certificates, opinions, instruments, and other
      documents required to effect the transactions contemplated hereby, including
      any
      documents referred to in Section
      6(b) and
      (c), will be reasonably satisfactory in form and substance to
      Seller.

     

    Seller
      may waive any condition specified in this Section
      7(b)
      if
      it executes a writing so stating at or prior to the Closing.

     

    8. Remedies
      for Breaches of This Agreement.
      

     

    (a) Survival
      of Representations and Warranties.
      The
      representations and warranties of Seller contained in Section
      4
      above
      shall survive the Closing hereunder for a
      period
      of six (6) months All
      of
      the representations and warranties of the Parties contained in Section
      3
      above
      shall survive the Closing (unless the damaged Party knew or had reason to know
      of any misrepresentation or breach of warranty at the time of Closing) and
      continue in full force and effect thereafter, subject to any applicable statutes
      of limitations.

     

    (b) Indemnification
      Provisions for Buyer’s Benefit.
      

     

    (i) In
      the
      event Seller breaches its representations, warranties, and covenants contained
      herein, and,
      provided that Buyer makes a written claim for indemnification against Seller
      pursuant to Section
      8(e)
      below
      within the survival period (if there is an applicable survival period pursuant
      to Section
      8(a)
      above), then Seller shall indemnify Buyer,
      Target
      and Sub
      from and
      against any Adverse Consequences Buyer,
      Target
      and Sub
      shall
      suffer (but
      

    

    
      
        
        

      

      
        13

        
        

      

      
        
        

      

    

    

    excluding
      any Adverse Consequences Buyer,
      Target
      and Sub
      shall
      suffer after the end of any applicable survival period) caused by the breach.
      

     

    (ii) Notwithstanding
      the foregoing, (A) Seller shall not have any obligation to indemnify Buyer
      from
      and against any Adverse Consequences caused by the breach of any representation
      or warranty or covenant of Seller contained in this Agreement until Buyer has
      suffered Adverse Consequences by reason of all such breaches in excess of a
      $10,000 aggregate deductible, and (B) the maximum aggregate amount of Adverse
      Consequences caused by the breach of any representation or warranty of Seller
      contained in this Agreement for which Seller shall have any obligation hereunder
      to indemnify Buyer shall be the amount of the Purchase Price (after which point
      Seller will have no obligation to indemnify Buyer from and against further
      such
      Adverse Consequences).

     

    (c) Indemnification
      Provisions for Seller’s Benefit.
      In the
      event Buyer breaches any of its representations, warranties, and covenants
      contained herein, and provided that any Seller makes a written claim for
      indemnification against Buyer pursuant to Section
      8(e)
      below
      within the survival period (if there is an applicable survival period pursuant
      to Section
      8(a)
      above), then Buyer shall indemnify each Seller from and against the entirety
      of
      any Adverse Consequences suffered (but excluding any Adverse Consequences
      suffered after the end of any applicable survival period) caused by the
      breach.

     

    (d) Matters
      Involving Third Parties.
      

     

    (i) If
      any
      third party shall notify any Party (the “Indemnified Party”) with respect to any
      matter (a “Third Party Claim”) which may give rise to a claim for
      indemnification against any other Party (the “Indemnifying Party”) under this
Section
      8,
      then
      the Indemnified Party shall promptly (and in any event within five business
      days
      after receiving notice of the Third Party Claim) notify each Indemnifying Party
      thereof in writing.

     

    (ii) Any
      Indemnifying Party will have the right at any time to assume and thereafter
      conduct the defense of the Third Party Claim with counsel of his or its choice
      reasonably satisfactory to the Indemnified Party; provided however, that the
      Indemnifying Party will not consent to the entry of any judgment or enter into
      any settlement with respect to the Third Party Claim without the prior written
      consent of the Indemnified Party (not to be withheld unreasonably) unless the
      judgment or proposed settlement involves only the payment of money damages
      and
      does not impose an injunction or other equitable relief upon the Indemnified
      Party.

     

    (iii) Unless
      and until an Indemnifying Party assumes the defense of the Third Party Claim
      as
      provided in Section
      8(d)(ii)
      above, however, the Indemnified Party may defend against the Third Party Claim
      in any manner he, she, or it reasonably may deem appropriate.

     

    (iv) In
      no
      event will the Indemnified Party consent to the entry of any judgment or enter
      into any settlement with respect to the Third Party Claim without the prior
      written consent of each of the Indemnifying Parties.

    

    
      
        
        

      

      
        14

        
        

      

      
        
        

      

    

    

    (e) Determination
      of Adverse Consequences.
      All
      indemnification payments under this §8 shall be paid by the Indemnifying Party
      net of any Tax benefits and insurance coverage that may be available to the
      Indemnified Party.

     

    (f)Exclusive
      Remedy.
      Buyer
      and Seller acknowledge and agree that the foregoing indemnification provisions
      in this §8 shall be the exclusive remedy of Buyer and Seller with respect to
      Target, Sub, and the transactions contemplated by this Agreement.
      Without
      limiting the generality of the foregoing, Buyer
      acknowledges and agrees that it shall not have any remedy after the Closing
      for
      any breach of the representations and warranties in §4 above.

     

    9. Termination.

     

    (a) Termination
      of Agreement.
      Buyer
      and Seller may terminate this Agreement as provided below:

     

    (i) Buyer
      and
      Seller may terminate this Agreement by mutual written consent at any time prior
      to the Closing;

     

    (ii) Buyer
      may
      terminate this Agreement by giving written notice to Seller at any time prior
      to
      the Closing in the event:
      (A)
      Seller has within the previous
      5 business days given Buyer any notice pursuant to Section
      5(d)(i)
      above
      and (B) the development that is the subject of the notice has had a Material
      Adverse Effect 

    

    (iii) Buyer
      may
      terminate this Agreement by giving written notice to Seller at any time prior
      to
      the Closing (A) in the event Seller has breached any material representation,
      warranty, or covenant contained in this Agreement (other than the
      representations and warranties in Section
      4
      above)
      in any material respect, Buyer has notified Seller of the breach, and the breach
      has continued without cure for a period of 30 days after the notice of
      breach

     

    (iv) Seller
      may terminate this Agreement by giving written notice to Buyer (A) at any time
      prior to the Closing in the event Buyer has breached any material
      representation, warranty, or covenant contained in this Agreement in any
      material respect, Seller has notified Buyer in
      writing of
      the
      breach, and the breach has continued without cure for a period of 30 days,
      or
      (B) at Closing in the event any of the conditions contained in Section
      7(b)
      have not been or are not satisfied.

     

    (b) Effect
      of Termination.
      If any
      Party terminates this Agreement pursuant to Section
      9(a)
      above, all rights and obligations of the Parties hereunder shall terminate
      without any liability of any Party to any other Party (except for any liability
      of any Party then in breach); provided, however, that the confidentiality
      provisions contained in Section
      5(e)
      above shall survive termination. 

    

    
      
        
        

      

      
        15

        
        

      

      
        
        

      

    

    

    10. Miscellaneous.
      

     

    (a) Press
      Releases and Public Announcements.
      No
      Party shall issue any press release or make any public announcement relating
      to
      the subject matter of this Agreement prior to the Closing without the prior
      written approval the other Party; provided, however, that any Party may make
      any
      public disclosure it believes in good faith is required by applicable law or
      any
      listing or trading agreement concerning its publicly-traded securities (in
      which
      case the disclosing Party will use its reasonable best efforts to advise the
      other Parties prior to making the disclosure).

     

    (b) No
      Third-Party Beneficiaries.
      This
      Agreement shall not confer any rights or remedies upon any Person other than
      the
      Parties and their respective successors and permitted assigns.

     

    (c) Entire
      Agreement.
      This
      Agreement (including the documents referred to herein) constitutes the entire
      agreement among the Parties and supersedes any prior understandings, agreements,
      or representations by or among the Parties, written or oral, to the extent
      they
      relate in any way to the subject matter hereof.

     

    (d) Succession
      and Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties named
      herein and their respective successors and permitted assigns. No Party may
      assign either this Agreement or any of his, her, or its rights, interests,
      or
      obligations hereunder without the prior written approval of the other Party
      hereto; provided, however, that Buyer may (i) upon written notice of same to
      Seller, assign any or all of its rights and interests hereunder to one or more
      of its Affiliates and (ii) designate one or more of its Affiliates to perform
      its obligations hereunder (in any or all of which cases Buyer nonetheless shall
      remain responsible for the performance of all of its obligations
      hereunder).

     

    (e) Counterparts.
      This
      Agreement may be executed in one or more counterparts (including by means of
      facsimile), each of which shall be deemed an original but all of which together
      will constitute one and the same instrument.

     

    (f) Headings.
      The
Section
      headings
      contained in this Agreement are inserted for convenience only and shall not
      affect in any way the meaning or interpretation of this Agreement.

     

    (g) Notices.
      All
      notices, requests, demands, claims, and other communications hereunder will
      be
      in writing. Any notice, request, demand, claim, or other communication hereunder
      shall be deemed duly given (i) when delivered personally to the recipient,
      (ii)
      one business day after being sent to the recipient by reputable overnight
      courier service (charges prepaid), (iii) one business day after being sent
      to
      the recipient by facsimile transmission or electronic mail, or (iv) four
      business days after being mailed to the recipient by certified or registered
      mail, return receipt requested and postage prepaid, and addressed to the
      intended recipient as set forth below:

    

    
      
        
        

      

      
        16

        
        

      

      
        
        

      

    

     

    
      	
               If to Seller: 

               

            	
              Copy
                to:

               

            
	
               Gentner
                Ventures, Inc.

            	 Geoffrey W. Mangum, Esq.
	 c/o ClearOne Communications,
              Inc. 	 Parsons Behle &
Latimer
	 1825 Research Way	 1800 - 201 South Main
              Street
	 Salt Lake City, Utah 84119 	 Salt Lake City, Utah 84111
	 Fax: (801) 977-0087 	 Fax: (801) 536-6111
	 Attn: Chief Financial Officer	 
	 	 
	 If to Buyer: 	 Copy to:
	
               

              6351352 Canada Inc.

            	 
	 c/oWilliam Douglas 	Alfred Apps
	 Suite PH2-55 Elm Drive West 	Suite
              4200-66 Wellington Street West
	 Mississauga, Ontario, Canada L5B
              323 	 Box 20, Toronto, Ontario, Canada M5K
              1N6
	 	 

    

    Any
      Party
      may change the address to which notices, requests, demands, claims, and other
      communications hereunder are to be delivered by giving the other Parties notice
      in the manner herein set forth.

     

    (h) Governing
      Law.
      This
      Agreement shall be governed by and construed in
      accordance with the laws of the State
      of
      Utah, including those laws governing conflicts of law. Except as specifically
      provided in § 2(b)(ii) herein, any dispute, disagreement or difference arising
      in connection with this Agreement or any breach thereof, which cannot be settled
      between the parties hereto by mutual negotiation in good faith, shall be settled
      by arbitration in accordance with the Commercial Arbitration Rules of the
      American Arbitration Association. The arbitration shall take place in the State
      of Utah

     

    (i) Amendments
      and Waivers.
      No
      amendment of any provision of this Agreement shall be valid unless the same
      shall be in writing and signed by Buyer and Seller. No waiver by any Party
      of
      any provision of this Agreement or any default, misrepresentation, or breach
      of
      warranty or covenant hereunder, whether intentional or not, shall be valid
      unless the same shall be in writing and signed by the Party making such waiver,
      nor shall such waiver be deemed to extend to any prior or subsequent default,
      misrepresentation, or breach of warranty or covenant hereunder or affect in
      any
      way any rights arising by virtue of any prior or subsequent such
      occurrence.

     

    (j) Severability.
      Any
      term or provision of this Agreement that is invalid or unenforceable in any
      situation in any jurisdiction shall not affect the validity or enforceability
      of
      the remaining terms and provisions hereof or the validity or enforceability
      of
      the offending term or provision in any other situation or in any other
      jurisdiction.

     

    (k) Expenses.
      Each
      of Buyer, Seller, Target, and Sub will bear his, her, or its own costs and
      expenses (including legal fees and expenses) incurred in connection with this
      Agreement and the transactions contemplated hereby.
      Without
      limiting the generality of the foregoing, all transfer, documentary, sales,
      use,
      stamp, registration and other such Taxes, and all conveyance fees, recording
      charges and other fees and charges (including any penalties and interest)
      incurred in connection with the consummation of the transactions contemplated
      by
      this 

    

    
      
        
        

      

      
        17

        
        

      

      
        
        

      

    

    

    Agreement
      shall be paid by Buyer when due, and Buyer shall, at its own expense, file
      all
      necessary Tax Returns and other documentation with respect to all such Taxes,
      fees and charges, and, if required by applicable law, the Parties will, and
      will
      cause their Affiliates to, join in the execution of any such Tax Returns and
      other documentation.

     

    (l) Construction.
      Any
      reference to any federal, provincial state, local, or foreign statute or law
      shall be deemed also to refer to all rules and regulations promulgated
      thereunder, unless the context requires otherwise. The word “ including” shall
      mean including without limitation.

     

    (m) Incorporation
      of Exhibits, Annexes, and Schedules.
      The
      Exhibits, Annexes, and Schedules identified in this Agreement are incorporated
      herein by reference and made a part hereof.

     

    (n) Governing
      Language.
      This
      Agreement has been negotiated and executed by the Parties in English. In the
      event any translation of this Agreement is prepared for convenience or any
      other
      purpose, the provisions of the English version shall prevail.

     

     

     

    [SIGNATURE
      PAGE FOLLOWS]

     

     

     

     

     

     

     

     

     

    

    
      
        
        

      

      
        18

        
        

      

      
        
        

      

    

    

    *
      * * *
      *

    IN
      WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
      date
      first above written.

     

     

    
      	
              6351352
                CANADA INC.

            	 GENTNER
              VENTURES, INC.
               

            
	
              By: 
                /s/ William Douglas

            	
              By:
                /s/ Donald E Frederick

            
	
               

              Title: 
                Vice President

            	
               

              Title: 
                Vice President

            
	 	 

    

     

     

     

     

     

     

     

     

     

     

    19

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