Document:

Exhibit 10.11

 

STI ESCROW AGREEMENT

 

THIS STI
ESCROW AGREEMENT
(this “Escrow Agreement”) is made and entered into this 22 day of
January, 2007, by and among Consonus Technologies, Inc. (the “Company”),
Consonus Acquisition Corp., a Delaware corporation (“Consonus”), Irvin
J. Miglietta, an individual resident of the State of Connecticut (the “STI
Holders’ Agent”), Strategic Technologies, Inc., a North Carolina
corporation (“STI”), and Branch Banking and Trust Company, a North
Carolina banking corporation (the “Escrow Agent”).

 

R E C I T A L S:

 

A.            The Company, Consonus, STI, CAC Merger Sub, Inc., and STI
Merger Sub, Inc. have entered into a Merger Agreement, dated as of October 18,
2006 (the “Merger Agreement”). Capitalized terms used, but not defined
herein have the same meaning as defined in or used in the Merger Agreement.

 

B.            The Merger Agreement requires the execution and delivery
of this Escrow Agreement.

 

C.            The Merger Agreement contemplates the deposit by the
Company with the Escrow Agent of the STI Escrow Shares to be held pursuant to
this Escrow Agreement, as set forth herein.

 

D.            Pursuant to Section 7.9(a) of the Merger Agreement, the
STI Holders have appointed Irvin J. Miglietta as STI Holders’ Agent to take any
and all actions and make any decisions with respect to Claims.

 

NOW, THEREFORE,
pursuant to the covenants and benefits between the parties in the Merger
Agreement and in consideration of the premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it
is hereby agreed as follows:

 

1.             APPOINTMENT OF ESCROW AGENT. STI, STI Holders’ Agent and the Company
hereby irrevocably appoint the Escrow Agent as escrow agent to receive, hold,
administer and deliver the STI Escrow Fund in accordance with this Escrow
Agreement, and the Escrow Agent hereby accepts such appointment, all subject to
and upon the terms and conditions set forth herein.

 

2.             ESTABLISHMENT OF ESCROW FUND. At the Closing of the transactions
contemplated in the Merger Agreement, the Company shall transfer the STI Escrow
Shares to the Escrow Agent. It is the parties’ intention that, subject to the
terms and conditions set forth herein, the STI Escrow Fund shall be available
to fund indemnification payments required by the STI Holders pursuant to the
Merger Agreement and that the Escrow Agent shall dispose of the STI Escrow Fund
in accordance with the express provisions of this Escrow Agreement, and shall
not make, be required to make or be liable in any manner for its failure to make,
any determination under the Merger Agreement, or any other agreement,
including, without limitation, any determination of whether the Company or
Consonus, as applicable, has complied

 

 

with the terms of the Merger
Agreement or whether the Company or Consonus, as applicable, is entitled to
delivery of payment of any or all of the STI Escrow Fund.

 

3.             INVESTMENT AND MANAGEMENT OF ESCROW
FUND. All STI Escrow
Shares shall be issued and outstanding on the books and records of the Company
and shall appear thereon as held by the Escrow Agent as nominee for the STI
Holders. The STI Holders shall retain full voting power over all STI Escrow
Shares. Any cash dividends, dividends payable in securities or other
distributions of any kind (but excluding any shares of the Company capital
stock received upon a stock split or stock dividend), shall be promptly
distributed by the Escrow Agent to the beneficial holder of the STI Escrow
Shares to which such distribution relates, by check mailed via first class
mail, to the STI Holders at their addresses, and in the percentage interests
set forth in the Escrow Agreement. Any shares of the Company capital stock
received by the Escrow Agent upon a stock split made in respect of any
securities in the STI Escrow Fund shall be added to the STI Escrow Fund and
become a part thereof. The STI Holders’ Agent shall furnish to the Escrow Agent
a Form W-9. The Escrow Agent shall have no duty or responsibility with respect
to any federal or state tax filing or reporting.

 

4.             RELEASE OF ESCROW FUND. The Escrow Agent shall hold the STI Escrow
Fund until it delivers all or part of the STI Escrow Fund as provided in this
Section 4, as follows:

 

(a)           With respect to Claims made against the STI Escrow Fund,
upon receipt by the Escrow Agent prior to the one (1) year anniversary of the
Closing Date (the “Escrow Expiration Date”) of an Officer’s Certificate
stating that Losses exist and specifying in reasonable detail the individual
items of such Losses included in the amount so stated, the date each such item
was paid or the Loss was suffered, the nature of the misrepresentation or
breach of warranty or covenant to which such Loss is related the Escrow Agent
shall, subject to the provisions of Section 4(b) and Section 5 hereof, deliver
to the Company out of the STI Escrow Fund as promptly as practicable, STI
Escrow Shares having a value (determined pursuant to Section 7.4(b) of the
Merger Agreement) equal to such Losses, in accordance with this Escrow
Agreement and Article VII of the Merger Agreement. The Company or Consonus, as
applicable, will, simultaneously with the delivery of the Officer’s Certificate
to the Escrow Agent, deliver a copy thereof to the STI Holders’ Agent.

 

(b)           For a period of forty-five (45) days after such delivery
to the Escrow Agent and the STI Holders’ Agent of an Officer’s Certificate, the
Escrow Agent shall make no delivery of STI Escrow Shares unless the Escrow
Agent shall have received written authorization from the STI Holders’ Agent to
make such delivery. After the expiration of such forty-five (45) day period,
the Escrow Agent shall make delivery of the STI Escrow Shares from the STI
Escrow Fund in accordance with Section 4(a) hereof, provided that no such
payment or delivery may be made if the STI Holders’ Agent objects in a written
statement to the Claim made in the Officer’s Certificate, and such statement
has been delivered to the Escrow Agent, with a copy to the Company or Consonus,
as applicable, prior to the expiration of such forty-five (45) day period.

 

(c)           On the Escrow Expiration Date, the remaining amount of the
STI Escrow Fund shall promptly be delivered to the STI Holders in accordance
with the STI Payment Schedule; provided, however, that the escrow period shall
not terminate with respect to any

 

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amount of the STI Escrow
Fund that is subject to any then unresolved Claims specified in any Officer’s
Certificate delivered to the Escrow Agent, with a copy to the STI Holders’
Agent, on or prior to the Escrow Expiration Date with respect to facts and
circumstances existing on or prior to the Escrow Expiration Date (each, a “STI
Unresolved Claim”). Promptly following resolution of each such STI Unresolved
Claim, and subject to satisfaction of any then outstanding but unpaid
out-of-pocket costs and expenses reasonably incurred by the STI Holders’ Agent
in connection with actions taken by the STI Holders’ Agent pursuant to the
terms of the Merger Agreement and this Escrow Agreement (including the hiring
of legal counsel and the incurring of reasonable legal fees and costs) not to
exceed $10,000, the Escrow Agent shall deliver the remaining portion of the STI
Escrow Fund not required to satisfy such Claims, Agent Indemnity or Agent
Expenses, to the STI Holders in accordance with the STI Payment Schedule.

 

5.             DISPUTE RESOLUTION.

 

(a)           If the STI Holders’ Agent objects in writing to any Claim
by the Company or Consonus made in any Officer’s Certificate, the Company or
Consonus, as applicable, shall have forty-five (45) days after its receipt of
such an objection to respond to such objection in a written statement delivered
to the Escrow Agent, with a copy to the STI Holders’ Agent. If after such
forty-five (45) day period there remains a dispute as to the Claim, the STI
Holders’ Agent and a representative of the Company or Consonus, as applicable,
shall attempt in good faith for sixty (60) days to agree upon the rights of the
respective parties with respect to the Claim. If the STI Holders’ Agent and the
Company or Consonus, as applicable, should so agree, a memorandum setting forth
such agreement shall be prepared and signed by both parties and shall be
furnished to the Escrow Agent. The Escrow Agent shall be entitled to rely on
any such memorandum and shall distribute the STI Escrow Shares from the STI
Escrow Fund in accordance with the terms thereof.

 

(b)           If no such agreement can be reached after good faith
negotiation, either the Company or Consonus, as applicable, or the STI Holders’
Agent may, by written notice to the other, demand arbitration of the matter
unless the amount of the damage or loss is at issue in pending litigation with
a third party, in which event arbitration shall not be commenced until such
amount is ascertained or both parties agree to arbitration; and in either such
event the matter shall be settled by arbitration conducted by one (1)
independent arbitrator in New York, New York, as mutually agreed upon by the
Company or Consonus, as applicable, and the STI Holders’ Agent. In the event
that within thirty (30) days after submission of any dispute to arbitration,
the Company or Consonus, as applicable, and STI Holders’ Agent cannot mutually
agree on one (1) arbitrator, the Company or Consonus, as applicable, and the
STI Holders’ Agent shall each select one (1) arbitrator, and the two (2)
arbitrators so selected shall select a third (3rd) arbitrator. The arbitration
shall be administered by and in accordance with the then-existing Rules of
Practice and Procedure of JAMS/Endispute. Notwithstanding anything to the
contrary contained herein, the arbitrator (or arbitrators) shall apply and
follow all applicable legal requirements in making his or her decision. The
decision of the arbitrator (or arbitrators) as to the validity and amount of
the disputed Claim shall be binding and conclusive upon the parties to this
Escrow Agreement (and not subject to appeal), and notwithstanding anything
herein to the contrary, the Escrow Agent shall be entitled to act in accordance
with such decision and make, withhold or distribute payments out of the STI
Escrow Fund in accordance therewith.

 

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(c)           Judgment upon any award rendered by the arbitrators may be
entered in any court having jurisdiction. For purposes of this Section 5, in
any arbitration hereunder in which the amount thereof stated in the Officer’s
Certificate is at issue, the Company or Consonus, as applicable, shall be
deemed to be the non-prevailing party, unless the arbitrators award the Company
or Consonus, as applicable, more than one-half (1/2) of the amount in dispute;
in which case, the applicable Indemnifying Parties shall be deemed to be the
non-prevailing party. The non-prevailing party to an arbitration shall pay its
own expenses, the fees of each arbitrator, the administrative fee of
JAMS/Endispute and the expenses, including without limitation, attorneys’ fees
and costs, reasonably incurred by the other party to the arbitration. If the
applicable Indemnifying Parties are deemed to be the non-prevailing party, such
expenses and fees shall be paid first, from the STI Escrow Shares held in the
STI Escrow Fund on behalf of the applicable Indemnifying Parties (to the extent
that such STI Escrow Shares are not otherwise required to satisfy any Losses),
and second, by the Company.

 

(d)           Notwithstanding anything to the
contrary in this Escrow Agreement:

 

(1)           The Escrow Agent may, in case of any
dispute pertaining to the STI Escrow Fund or the duties of the Escrow Agent
hereunder, deposit the STI Escrow Fund with the clerk of any court of competent
jurisdiction upon commencement of an action in the nature of interpleader or in
the course of any court proceedings.

 

(2)           Upon any delivery or deposit of the
STI Escrow Fund as provided in this Section 5(d), the Escrow Agent shall
thereupon be released and discharged from any and all further obligations
arising in connection with this Escrow Agreement.

 

6.             ESCROW
AGENT.

 

(a)           The Escrow Agent shall be entitled to reimbursement for
all reasonable fees, expenses, disbursements and advances incurred or made by
it in performance of its duties hereunder (including reasonable fees, expenses
and disbursements of its counsel) as set forth on Exhibit A attached
hereto and incorporated herein by reference. Such reimbursement for fees,
expenses, disbursements and advances shall be paid by the Company.

 

(b)           The Escrow Agent’s duties and responsibilities shall be
limited to those expressly set forth in this Escrow Agreement, and the Escrow
Agent shall not be subject to, or obligated to recognize, any other agreement
between any or all of the parties or any other persons, including, without
limitation, the Merger Agreement, unless such provision is specifically
referenced herein. The Escrow Agent shall not be liable for any damages or have
any obligations other than the duties prescribed herein in carrying out or
executing the purposes and intent of this Escrow Agreement; provided, however,
that nothing herein contained shall relieve the Escrow Agent from liability
arising out of its own willful misconduct or gross negligence. The Escrow Agent’s
duties and obligations under this Escrow Agreement shall be entirely
administrative and not discretionary. The Escrow Agent shall not be liable to
any party hereto or to any third party as a result of any action or omission
taken or made by the Escrow Agent in good faith through the exercise of its own
best judgment. Consonus, STI and the Company shall jointly and severally
indemnify, hold harmless and reimburse the Escrow Agent and each of its
officers, directors, agents from, against and for any and all liabilities,
costs, fees

 

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and expenses (including
reasonable attorneys’ fees) the Escrow Agent may suffer or incur by reason of
its execution and performance of this Escrow Agreement, except for any such
liabilities, costs, fees and expenses resulting from the Escrow Agent’s own
willful misconduct or gross negligence. In the event any legal questions arise
concerning the Escrow Agent’s duties and obligations hereunder, the Escrow
Agent may consult its counsel and rely without liability upon written opinions
given to it by such counsel. The Escrow Agent shall be protected in acting upon
any written notice, request, waiver, consent, authorization or other paper or
document which the Escrow Agent in good faith believes to be genuine and what
it purports to be, and the Escrow Agent shall be fully protected with respect
to any action taken or omitted pursuant to the advice of legal counsel.

 

(c)           The Escrow Agent shall not be responsible or liable for
the sufficiency or accuracy of the form, execution, validity or genuineness of
documents, instruments or securities now or hereafter deposited in escrow
pursuant to this Escrow Agreement.

 

(d)           The Escrow Agent is authorized, in its sole discretion, to
comply with orders issued or process entered by any court with respect to the
STI Escrow Fund, without determination by the Escrow Agent of such court’s
jurisdiction in the matter. If any portion of the STI Escrow Fund is at any
time attached, garnished or levied upon under any court order, or in case the
payment, assignment, transfer, conveyance or delivery of any such payment,
assignment, transfer, conveyance or delivery of any such property shall be
stayed or enjoined by any court order, or in case any order, judgment or decree
shall be made or entered by any court affecting such property or any part
thereof, then and in any such event, the Escrow Agent is authorized, in its
sole discretion, to rely upon and comply with any such order, writ, judgment or
decree which it is advised by legal counsel of its own choosing is binding upon
it; and if the Escrow Agent complies with any such order, writ, judgment or
decree, it shall not be liable to any of the parties hereto or to any other
person, firm or corporation by reason of such compliance even though such
order, writ, judgment or decree may be subsequently reversed, modified,
annulled, set aside or vacated.

 

(e)           The Escrow Agent may execute any of its duties under this
Escrow Agreement by and through employees, agents, and attorneys-in-fact.

 

7.             SUCCESSOR ESCROW AGENT. The Escrow Agent (and any successor Escrow
Agent) may at any time resign as such by delivering notice of its resignation
to the STI Holders’ Agent, the Company and Consonus and delivering the STI
Escrow Fund to a successor Escrow Agent jointly designated by the STI Holders’
Agent, the Company and Consonus in writing, or if the parties cannot agree on
the successor Escrow Agent within fifteen (15) days following the date of such
notice, to any court of competent jurisdiction, whereupon the resigning Escrow
Agent shall be discharged of and from any and all further obligations arising
in connection with this Agreement. After the resignation of any Escrow Agent,
the provision of this Escrow Agreement limiting the liability of the Escrow
Agent and indemnifying the Escrow Agent against liabilities, costs, fees and
expenses shall continue to inure to the benefit of the resigned Escrow Agent
with respect to any action or omission taken or made by it while it was the
Escrow Agent under this Escrow Agreement.

 

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8.             NOTICES. All notices and other communications
hereunder shall be in writing and shall be deemed given (i) on the date of
delivery, if delivered personally (ii) on the date of confirmation of receipt,
if delivered by commercial delivery service, or mailed by registered or
certified mail (return receipt requested) or (iii) on the date of confirmation
of receipt, if sent via facsimile to the parties at the following address (or
at such other address for a party as shall be specified by like notice):

 

If
to the STI Holders’ Agent:

 

Irvin
J. Miglietta

316
Stanley Drive

Glastonbury,
CT  06033

Facsimile
No.:                  

Telephone
No.:                  

 

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

 

Wyrick Robbins Yates & Ponton LLP

4101 Lake Boone Trail, Suite 300

Raleigh, North Carolina 27607

Attention: Lisa D. Inman

Facsimile No.: (919) 781-4865

Telephone No.: (919) 781-4000

 

If to Consonus to:

 

Consonus
Acquisition Corp.

c/o
Knox Lawrence International, LLC

445
Park Avenue, 20th Floor

New
York, NY  10167

Attention:
Chairman

Facsimile No.: (212)
792-0958

Telephone
No.: (212) 792-0920

 

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

 

Greenberg
Traurig, LLP

3290
Northside Parkway, Suite 400

Atlanta,
Georgia  30327

Attention:  Theodore I. Blum, Esq.

Telecopy
No.: (678) 553-2621

Telephone No.: (678) 553-2620

 

If to the Escrow Agent:

 

Branch
Banking and Trust Company

223
West Nash Street

 

6

 

Wilson,
North Carolina 27893

Attn:
Corporate Trust Services

Telephone
No.:   252.246.4116

Telecopy No.:  252.246.4303

 

Such
notice addresses may be changed upon written notice.

 

9.             CONFLICT. In the event any provision(s) of this Escrow
Agreement conflict with any provision(s) in the Merger Agreement, the
provisions of this Escrow Agreement will prevail.

 

10.          SEVERABILITY. Any provision of this Escrow Agreement
which may be determined by competent authority to be prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. It is expressly
understood, however, that the parties hereto intend each and every provision of
this Escrow Agreement to be valid and enforceable and hereby knowingly waive
all rights to object to any provision of this Escrow Agreement.

 

11.          ASSIGNMENT. This Escrow Agreement shall be binding upon
and inure solely to the benefit of the parties hereto and their respective
successors and assigns, and shall not be enforceable by or inure to the benefit
of any third party. No party may assign any of its rights or obligations under
this Escrow Agreement without the written consent of the other parties.

 

12.          AMENDMENTS. This Escrow Agreement may only be modified
or terminated by a writing signed by the parties hereto, and no waiver
hereunder shall be effective unless in a writing signed by the party to be
charged.

 

13.          COUNTERPARTS. This Escrow Agreement may be executed and
delivered in counterpart signature pages executed and delivered via facsimile
transmission, and any such counterpart executed and delivered via facsimile
transmission shall be deemed an original for all intents and purposes.

 

14.
GOVERNING LAW. This
Escrow Agreement shall be construed and interpreted according to the laws of
the State of North Carolina without regard to the conflict of law principles
thereof.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

7

 

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

 

 

	
   

  	
  CONSONUS
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Michael G. Shook

  
	
   

  	
   

  	
    Michael G.
  Shook, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STI
  HOLDERS’ AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/Irvin J. Miglietta

  
	
   

  	
  Irvin J. Miglietta

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CONSONUS
  ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/Nana Baffour

  
	
   

  	
   

  	
  Nana Baffour, Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STRATEGIC
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
          /s/Michael
  G. Shook

  
	
   

  	
   

  	
  Michael G. Shook, Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ESCROW
  AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BRANCH
  BANKING AND TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/Wayne A. Bolin

  
	
   

  	
  Name: 

  	
  /s/Wayne A. Bolin

  
	
   

  	
  Title: Senior Vice
  President

  
				

 

SIGNATURE PAGE TO STI ESCROW AGREEMENT

 

 

Exhibit    A

 

ESCROW AGENT

SCHEDULE OF FEES

 

	
  One-time Fee:

  	
  $1,500.00

  

 

The
One-time Fee is due upon execution of the Escrow Agreement.

 

All out-of-pocket expenses
will be billed at the Escrow Agent’s cost. Out-of-pocket expenses include, but
are not limited to, professional services (e.g. legal or accounting), travel
expenses, telephone and facsimile transmission costs, postage (including
express mail and overnight delivery charges), and copying charges.Exhibit 10.12

 

STI CLOSING SHARES ESCROW AGREEMENT

 

THIS STI
CLOSING SHARES ESCROW AGREEMENT (this “Escrow Agreement”) is made and entered into this 22 day
of January, 2007, by and among Consonus Technologies, Inc., a Delaware
corporation (“CTI”), Strategic Technologies, Inc. (“STI”), Irvin
J. Miglietta, a resident of the State of Connecticut (the “STI Holders’
Agent”), and Wyrick Robbins Yates & Ponton LLP, a North Carolina
limited liability partnership (the “Escrow Agent”).

 

R E C I T A L S:

 

A.            CTI and STI have entered into a Merger Agreement, dated
as of October 18, 2006 along with Consonus Acquisition Corp., a Delaware
corporation, Consonus Merger Sub, Inc., a Delaware corporation, and STI Merger
Sub, Inc., a North Carolina corporation (the “Merger Agreement”).
Capitalized terms used, but not defined herein have the same meaning as defined
in or used in the Merger Agreement.

 

B.            The Merger Agreement contemplates the deposit by CTI with
the Escrow Agent of the STI Closing Shares to be held pursuant to this Escrow
Agreement, as set forth herein.

 

NOW, THEREFORE,
pursuant to the covenants and benefits between the parties in the Merger
Agreement and in consideration of the premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it
is hereby agreed as follows:

 

1.             APPOINTMENT OF ESCROW AGENT. STI, the STI Holders’ Agent and CTI hereby
irrevocably appoint the Escrow Agent as escrow agent to receive, hold,
administer and deliver the STI Escrow Shares in accordance with this Escrow
Agreement, and the Escrow Agent hereby accepts such appointment, all subject to
and upon the terms and conditions set forth herein.

 

2.             ESTABLISHMENT OF ESCROW FUND. At the Closing of the transactions
contemplated in the Merger Agreement, the Company shall transfer the STI
Closing Shares to the Escrow Agent. It is the parties’ intention that, subject
to the terms and conditions set forth herein, that the Escrow Agent shall
dispose of the STI Closing Shares in accordance with the express provisions of
this Escrow Agreement, and shall not make, be required to make or be liable in
any manner for its failure to make, any determination under the Merger
Agreement, or any other agreement, including, without limitation, any determination
of whether CTI or STI, as applicable, has complied with the terms of the Merger
Agreement or whether the Company , STI, or the STI Holders as applicable, are
entitled to delivery of any or all of the STI Closing Shares.

 

3.             MANAGEMENT OF ESCROW FUND. All STI Closing Shares shall be issued and
outstanding on the books and records of CTI and shall appear thereon as held by
the Escrow Agent as nominee for the STI Holders. The STI Holders shall retain
full voting power over all STI Closing Shares. Any cash dividends, dividends
payable in securities or other distributions of any kind (but excluding any
shares of CTI capital stock received upon a stock split or stock dividend),
shall be promptly distributed by the Escrow Agent to the beneficial holder of
the STI Closing Shares to which such distribution relates, by check mailed via
first

 

 

class mail, to the STI
Holders at their addresses, and in the percentage interests set forth in the
STI Payment Schedule. Any shares of CTI capital stock received by the Escrow
Agent upon a stock split made in respect of any securities in the held by the
Escrow Agent hereunder shall be added to the STI Closing Shares and, together,
may be referred to as the “Escrow Fund”. STI shall furnish to the Escrow Agent
a Form W-9, if necessary. The Escrow Agent shall have no duty or responsibility
with respect to any federal or state tax filing or reporting.

 

4.             RELEASE OF ESCROW FUND. The Escrow Agent shall hold the Escrow Fund
until the earlier to occur of the following:

 

(a)           The closing of the IPO, at which time the entire Escrow
Fund will be delivered to the STI Holders in accordance with the STI Payment
Schedule; or

 

(b)           Such date as the Rescission occurs, in which case the
entire Escrow Fund will be delivered to CTI for cancellation in exchange for
which the STI Holders will receive the STI Common Stock held by each such STI
Holder immediately prior to the closing of the Mergers; or

 

(c)           In the event neither of the foregoing occurs by December
29, 2007, the entire Escrow Fund will be delivered to the STI Holders in
accordance with the STI Payment Schedule, and no Rescission shall occur.

 

STI, the STI Holders’ Agent
and CTI will notify the Escrow Agent in a joint written notice promptly upon
the occurrence of the events described in (a) and (b) above. The Escrow Agent
will deliver the Escrow Fund in the manner described above within ten (10)
business days following receipt of such written notice or, in the case of (c)
above, within ten (10) business days following December 29, 2007.

 

5.             ESCROW AGENT

 

(a)           Escrow Agent will perform its
obligations hereunder fairly and impartially according to the intent of the
parties as herein expressed, provided however that Escrow Agent is to be
considered as a depository only, shall not be deemed to be a party to any
document other than this Escrow Agreement, and shall not be responsible or
liable in any manner whatsoever for the sufficiency or manner of execution, or
validity or any written instructions, certificates or any other documents
received by it, nor as to the identity, authority, or rights or any persons
executing the same. Escrow Agent shall be entitled to rely at all times on
instructions given by STI, the STI Holders’ Agent and CTI, as the case may be
and as required hereunder, without any necessity or verifying the authority
thereof. STI, the STI Holders’ Agent and CTI acknowledge that Escrow Agent is
counsel for STI and waive any potential conflict of interest in connection
therewith. Notwithstanding the foregoing, in the event of a dispute hereunder
between STI and CTI (or its successors or assigns), in Escrow Agent’s
discretion, Escrow Agent shall have the right, exercisable in its sole
discretion, to be discharged by tendering the Escrow Fund and any related funds
held by Escrow Agent unto the registry or custody of any court of competent
jurisdiction, together with any such legal pleadings as it deems appropriate.
Escrow Agent shall have the right to continue as counsel for STI
notwithstanding any action taken by Escrow Agent in accordance with this
Agreement.

 

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(b)           Escrow Agent shall not at any time be
held liable for actions taken or omitted to be taken in good faith and without
gross negligence. STI and CTI agree to save and hold Escrow Agent harmless from
any loss and from any claims or demands arising out of its actions hereunder
and hereby agree to indemnify Escrow Agent from any claims or demands for
losses arising out of its activities hereunder.

 

(c)           It is further understood by STI and
CTI that if, as the result of any disagreement between them or adverse demands
and claims being made by any of them upon Escrow Agent, such parties agree that
they, jointly and severally, are and shall be liable to Escrow Agent and shall
reimburse Escrow Agent for its reasonable costs, expenses and counsel fees it
shall incur or be compelled to pay by reason of such litigation. STI agrees
that it shall be responsible to advance all amounts due Escrow Agent for its
services as set forth in this Agreement, provided that any such advance by STI
as the result of any dispute or litigation between STI and CTI shall be without
prejudice to its right to recover such amount as damages from CTI.

 

(d)           In taking or omitting to take any
action whatsoever hereunder, Escrow Agent shall be protected in relying upon
any notice, paper, or other document believed by it to be genuine, or upon
evidence deemed by it to be sufficient, and in no event shall Escrow Agent be
liable hereunder for any act performed or omitted to be performed by it
hereunder in the absence of gross negligence or bad faith. Escrow Agent may
consult with counsel in connection with its duties hereunder and shall be fully
protected in any act taken, suffered or permitted by it in good faith and without
gross negligence in accordance with the advice of such counsel.

 

6.             NOTICES. All notices and other communications
hereunder shall be in writing and shall be deemed given (i) on the date of
delivery, if delivered personally (ii) on the date of confirmation of receipt,
if delivered by commercial delivery service, or mailed by registered or
certified mail (return receipt requested) or (iii) on the date of confirmation
of receipt, if sent via facsimile to the parties at the following address (or
at such other address for a party as shall be specified by like notice):

 

If
to CTI:

 

Consonus
Technologies, Inc.

180
East 100 South

Salt
Lake City, Utah 84111

Attention:
Nana Baffour

Facsimile
No.: (801) 617-2980

Telephone
No.:           (801)
617-2998

 

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

 

Greenberg
Traurig, LLP

3290
Northside Parkway, Suite 400

Atlanta,
Georgia  30327

 

3

 

Attention:  Theodore I. Blum, Esq.

Telecopy
No.: (678) 553-2621

Telephone No.: (678) 553-2620

 

If to STI to:

 

Strategic
Technologies, Inc.

301
Gregson Drive

Cary,
North Carolina 27511

Attention:
Mike Shook

Facsimile No.: (919)
379-8000

Telephone
No.: (919) 379-8100

 

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

 

Wyrick Robbins Yates & Ponton LLP

4101 Lake Boone Trail, Suite 300

Raleigh, North Carolina 27607

Attention: Lisa D. Inman

Facsimile No.: (919) 781-4865

Telephone No.: (919) 781-4000

 

If
to the Escrow Agent:

 

Wyrick Robbins Yates & Ponton LLP

4101 Lake Boone Trail, Suite 300

Raleigh, North Carolina 27607

Attention: Lisa D. Inman

Facsimile No.: (919) 781-4865

Telephone
No.: (919) 781-4000

 

Such
notice addresses may be changed upon written notice.

 

7.             CONFLICT. In the event any provision(s) of this Escrow
Agreement conflict with any provision(s) in the Merger Agreement, the
provisions of this Escrow Agreement will prevail.

 

8.             SEVERABILITY. Any provision of this Escrow Agreement
which may be determined by competent authority to be prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. It is expressly understood, however,
that the parties hereto intend each and every provision of this Escrow
Agreement to be valid and enforceable and hereby knowingly waive all rights to
object to any provision of this Escrow Agreement.

 

4

 

9.             ASSIGNMENT. This Escrow Agreement shall be binding upon
and inure solely to the benefit of the parties hereto and their respective
successors and assigns, and shall not be enforceable by or inure to the benefit
of any third party. No party may assign any of its rights or obligations under
this Escrow Agreement without the written consent of the other parties.

 

10.          AMENDMENTS. This Escrow Agreement may only be modified
or terminated by a writing signed by the parties hereto, and no waiver
hereunder shall be effective unless in a writing signed by the party to be
charged.

 

11.          COUNTERPARTS. This Escrow Agreement may be executed and
delivered in counterpart signature pages executed and delivered via facsimile
transmission, and any such counterpart executed and delivered via facsimile
transmission shall be deemed an original for all intents and purposes.

 

12.
GOVERNING LAW. This
Escrow Agreement shall be construed and interpreted according to the laws of
the State of North Carolina without regard to the conflict of law principles
thereof.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

5

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

 

 

	
   

  	
  CONSONUS
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/Michael G. Shook

  	
   

  
	
   

  	
   

  	
  Michael G. Shook, Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  STRATEGIC
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Michael G. Shook

  	
   

  
	
   

  	
   

  	
  Michael G. Shook,
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STI
  HOLDERS’ AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/Irvin J. Miglietta

  	
   

  
	
   

  	
   

  	
   

  	
  Irvin J. Miglietta

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ESCROW
  AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Wyrick Robbins Yates &
  Ponton LLP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Lisa D. Inman

  	
   

  
	
   

  	
  Name: 

  	
  /s/Lisa D. Inman

  	
   

  
	
   

  	
  Title: Partner

  
								

 

SIGNATURE PAGE TO STI CLOSING SHARES ESCROW AGREEMENT

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