Document:

Exhibit 10.19

 

GROUND LEASE

 

This Ground Lease
(“Lease”) is entered into as of this 31st day of May, 2005, by and
between QUESTAR GAS COMPANY (“Lessor”) and CONSONUS, INC. (“Lessee”), with
reference to the following facts and circumstances:

 

A.                      Lessor owns
fee simple title to all of the Property (as hereinafter defined);

 

B.                        Lessee is
the owner of a facility which includes approximately 10,000 square feet of
office space and 12,800 square feet of raised-floor data center space located
on the Property (“Data Center”) within which Lessor and its affiliates house
essential computer equipment; and

 

C.                        Lessor and
Lessee entered into a Ground Lease, dated October 1, 1995 (the “Original Ground
Lease”), which Original Ground Lease the parties hereto desire to amend and
restate as set forth herein.

 

NOW, THEREFORE, in
consideration of the covenants herein contained, Lessor and Lessee hereby agree
as follows:

 

1.                          PREMISES

 

Lessor hereby
leases to Lessee that certain land located in the Salt Lake City, County of
Salt Lake, State of Utah, as more particularly described as follows:

 

Beginning
at the Southeast corner of Lot 1, Block 2, KELSEY AND GILLESPIE SUBDIVISION of
Block 44, Plat “C”, Salt Lake City Survey; and running thence South 89 deg.
58’19” West 171.00 feet; thence North 0 deg. 00’55” West 56.07 feet; thence
South 89 Deg. 58’19” West 106.77 feet; thence North 0 deg. 00’55” West 20.96
feet; thence South 89 deg. 58’19” West 92.06 feet; thence North 0 deg. 00’55”
West 81.45 feet; thence South 89 deg. 57’42” East 369.82 feet along the South
edge of a sidewalk to an extended East line of said Lot 1; thence South 0 deg.
00’55” East 158.15 feet along said extended line and East line of said Lot 1 to
the point of beginning.

 

together with all rights,
privileges, easements and appurtenances thereto (“Property”).

 

2.                        TERMS

 

a.                         Initial
Term

 

The initial term
shall consist of a period of fifty (50) years, commencing May 31, 2005 and
expiring May 30, 2055

 

b.                        Possession

 

Possession
of the Property shall be delivered to Lessee on the commencement of the term,
free of all tenancies.

 

c.                         Extension

 

Lessee
shall have the right and option (the “Options”) to extend the term of this
Lease on the same terms and conditions as set forth herein for four (4)
additional periods of ten (10) years each, the first commencing on May 31,
2055, the second commencing on May 31, 2065, the third commencing on May 31,
2075, and the fourth commencing on May 31, 2085 (the “Extensions”). Lessee
shall automatically be deemed to have exercised such options unless at least
six (6) months prior to the commencement of the Extension to which an option
relates Lessee notified Lessor in writing of its decision not to exercise such
option, in which case such option and all succeeding options shall lapse. In
the event that this Lease shall be terminated, any remaining options shall also
terminate.

 

3.                        RENT

 

a.                         Monthly
Rental

 

Lessee
shall pay to Lessor, in lawful money of the United States of America, free from
all claims,

 

 

demands, and set-offs
against Lessor, at such place or places as may be designated from time to time
from Lessor, the sum of $774.39 per month (“Base Rent”), payable on the first
day of each month. (The monthly rent set forth in this Paragraph 3(a) as
adjusted from time to time pursuant to Paragraph 3(b) hereof is sometimes
referred to hereinafter as the “Monthly Rent”).

 

b.                        Cost of
Living Adjustments

 

On the
fifth annual anniversary of the commencement of the term of this Lease, and
upon each fifth annual anniversary date of the preceding fifth annual
anniversary date during the term of this Lease, including Extensions, (each
such date, an “Adjustment Date”), the Monthly Rent then being paid shall be
increased by the corresponding increase in the Consumer Price Index (“CPI”) for
All Urban Consumers, U.S. City Average, All Items (1982-84 = 100), as published
by the U.S. Department of Labor, during the five-year period ending on the last
day of the month immediately preceding the month in which the increase occurs.
If publication of the CPI shall be discontinued or if its components shall be
adjusted or its base year changed, then in order to calculate the required
increases in Monthly Rent, the parties shall use any conversion table and/or
substitute index published by the U.S. Government or a non-partisan
organization which is intended to be a substitute for the CPI and which takes
into consideration generally the same price information as the CPI.

 

4.                        TAXES

 

Lessee shall pay
any and all taxes, assessments, and other charges of any description levied or
assessed by any governmental agency or entity on or against the Property. All
taxes or assessments levied or assessed on or against the Property during the
tax years in which the term of this Lease is to end shall be prorated between
Lessor and Lessee on the basis of a tax year commencing on January 1 and ending
on December 31 of each year. Any and all taxes and assessments and installments
of taxes and assessments required to be paid by Lessee under this Lease shall
be paid by Lessee at least ten (10) days before each such tax, assessment or
installment of tax or assessment becomes delinquent and a receipt for the
payment of such tax, assessment, or installment shall be promptly given to
Lessor. If any tax or assessment is levied or assessed against the Property and
such tax or assessment may be paid in full or in installments over a period
either within or extending beyond this Lease, Lessee shall have the option of
paying such tax or assessment in installments. Lessor shall cooperate with
Lessee and on written request of Lessee execute or join with Lessee in
executing any instruments required to permit any such tax or assessment to be
paid in installments. Lessee shall have the right to contest the amount or
validity of any tax, assessment, or other charge levied on or assessed against
the Property or any part of such Property; provided, however, that such contest
must be filed before the tax, assessment or other charge to which such contest
is directed becomes delinquent and written notice of such contest must be given
to Lessor at least ten (10) days before the date the tax, assessment or other
charge becomes delinquent Upon written request of Lessee, Lessor shall join in
any such contest if Lessee determines such joinder to be necessary or convenient
for the proper prosecution of the proceedings but Lessor shall not be liable
for any cost or expense incurred in such a proceeding. No such contest shall be
continued or maintained after the date the tax, assessment, or other charge to
which the contest is directed becomes delinquent unless Lessee has either: (i)
paid such tax, assessment, or other charge under protest prior to its becoming
delinquent; or (ii) delivered to Lessor a good and sufficient undertaking in
the amount of the contested tax, assessment, or other charge, and issued by a
bonding corporation authorized to issue undertakings in Utah conditioned on the
payment by Lessee of the tax, assessment, or charge together with any fines,
interest, penalties, costs, and expenses that may have accrued or become
imposed thereon within thirty (30) days after final determination of Lessee’s
contest to such tax, assessment or other charge. Except as hereinafter
provided, if Lessee shall fail to pay within the time specified in this
Paragraph any taxes, assessments, or other charges required to be paid by
Lessee, Lessor may pay, discharge, or adjust such tax, assessment, or other
charge for the benefit of Lessee. In such event, Lessee shall promptly on
written demand of Lessor reimburse Lessor for the full amount paid by Lessor in
paying, discharging, or adjusting such tax, assessment or other charge together
with interest thereon at twelve percent (12%) per annum from the date of
payment by Lessor until the date of the payment by Lessee. If no time within which
any charge required by this Paragraph to be paid by Lessee is specified, such
charge must be paid by Lessee before it becomes delinquent.

 

5.                          USE OF
PREMISES

 

The Property may
be used by Lessee solely for (i) operation of the Data Center, or (ii) any other
lawful purpose with the advance consent of Lessor, which consent will not be
unreasonably withheld. In connection with uses under either or both (i) and
(ii) above, Lessee shall not perform any excavation or construct any building
or improvement, including, but not limited to, any laying of foundation or
footing, fencing or landscaping, without the prior express of written consent

 

2

 

of Lessor, which consent
may be withheld in the Lessor’s sole and absolute discretion. Further, Lessee
shall not permit on the Property any nuisance as now or hereinafter defined by
any applicable statutory or decisional law.

 

6.                          UTILITIES

 

Lessee shall pay
or cause to be paid when due all charges for the furnishing of all utilities to
the Property, and for the removal of garbage and rubbish from the Property.

 

7.                          ENCUMBRANCE
OF LEASEHOLD ESTATE

 

a.                         Leasehold
Mortgages

 

At any time and
from time to time during the term of this Lease, and any extension thereof
Lessee may encumber to any person, firm or entity which is not a direct or
indirect affiliate of Lessee (“Lender”) by deed of trust or mortgage or other
security instrument (“Leasehold Mortgage”) all or any part of Lessee’s interest
under this Lease and the leasehold estate hereby created, and to assign its
interest in this Lease and in any sublease as collateral security for such
mortgage, deed of trust or security instrument for any purpose or purposes
consistent with Lessee’s authorized use of the Property without the consent of
Lessor; provided, however, that no Leasehold Mortgage incurred by Lessee
pursuant to this Paragraph shall, and Lessee shall not have power to incur any
encumbrance that will, constitute a lien or encumbrance on the fee of the
Property. Lessor and Lessee shall amend this Lease to include any provision
that a proposed Lender may reasonably request; provided, however, that such
provision implements Lender protection provisions in this Lease or preserves
the lien of the Leasehold Mortgage on the occurrence of any event of default
under this Lease; and further provided that such provisions do not amend,
modify or remove Paragraphs 5, 8 or 30 hereof. Such amendment shall neither
affect the rent or term provided for in this Lease nor materially adversely
affect any other rights of Lessor under this Lease. Any improvements
constructed on the Property during the term of this Lease, and any extensions
thereof, shall be and remain the property of the Lessee until the expiration or
sooner termination of this Lease, at which time they shall become the property
of Lessor.

 

b.                        Written
Request for Copy of Notice

 

Immediately after
the recording of any deed of trust or mortgage executed by Lessee pursuant to
Paragraph 7(a) of this Lease, Lessee shall request of Lender a copy of any
notice of default and a copy of any notice of sale under such deed of trust or
mortgage to be mailed to Lessor at the address specified in the request for
Lessor.

 

c.                         Duplicate
Notices to Lender

 

Lessor shall mail
to such Lender, at such address as shall be furnished to Lessor by such Lender,
a duplicate copy of any and all notices Lessor may from time to time give or
serve on Lessee pursuant to or relating to this Lease.

 

d.                        Amendments

 

Lessee and Lessor
hereby agree that they will not modify or cancel this Lease by mutual agreement
without the written consent of such Lender.

 

e.                         Prerequisites
for Lessor & Exercise of Remedies

 

Other than with
respect to an event of default described in Section 13(a)(iii) hereof, if
Lessee is in default under any provision of this Lease, Lessor shall not
terminate this Lease, re-enter without termination, or exercise any other
remedy to which it is entitled at law or in equity unless (1) an event of
default shall have occurred and be continuing, (2) Lessor shall have given
Lender written notice of such event of default as required under the provisions
of this Lease, and (3) Lender shall have failed to remedy such default to the
extent required by the provisions of this Lease or shall have failed to acquire
Lessee’s leasehold estate as permitted, and within the time specified, by this
Lease.

 

f.                           Lender’s
Right To Act On Behalf of Lessee

 

Lender shall have
the right at any time prior to termination of this Lease to pay any rent due
hereunder and to do any other act or thing required of Lessee hereunder in
order to prevent termination of this Lease, re-entry without termination, or
the exercise of any other remedy to which Lessor is entitled in law or equity.
All payments so made and all things done by Lender shall be as effective as
payments made and things done by Lessee.

 

3

 

g.                        Time to
Cure Default

 

Other than with
respect to an event of default described in Section 13(a)(iii) hereof, if any
event of default under this Lease occurs, Lender shall have forty-five (45)
days after receipt of notice from Lessor within which to remedy such default.
If possession of the Property and the improvements thereon would be reasonably
necessary to remedy the default, Lender shall have a reasonable amount of time
after the expiration of such forty-five (45) day period within which to remedy
such default, provided that (1) Lender has cured any default and the payment of
any monetary obligations of Lessee which is susceptible of cure by Lender under
this Lease within such forty-five (45) day period and continues to pay
currently such monetary obligations as they become due and (2) Lender has
acquired Lessee’s leasehold estate created hereby within or prior to such
period and is diligently prosecuting any such proceedings. All rights of Lessor
to terminate this Lease as a result of the occurrence of any event of default,
shall be subject to the rights of Lender set forth in this paragraph 7(g).

 

h.                        Default
Not Curable By Lender

 

Any event of
default under this Lease which, by its nature cannot be remedied by Lender,
shall be deemed to be remedied if (1) within thirty (30) days after written
notice from Lessor setting forth the nature of such event of default, or prior
thereto, Lender has acquired Lessee’s leasehold estate created by this Lease or
shall have commenced foreclosure proceedings, (2) Lender has cured any default
in the payment of monetary obligations of Lessee hereunder which are
susceptible of cure by Lender within such thirty (30) day period and thereafter
continues to faithfully perform all monetary obligations of Lessee hereunder
which are susceptible of cure by Lender and (3) after gaining possession of the
Property, Lender performs all obligations of Lessee hereunder as they become
due.

 

i.                            Recognition
of Lender as Lessee Upon Foreclosure

 

Foreclosure of a
Lender’s mortgage, deed of trust, or other security instrument or any sale
thereunder, whether by judicial proceedings or by virtue of any power contained
in such security instrument, or any conveyance of the leasehold estate created
hereby from Lessee to Lender through, or in lieu of, foreclosure shall not
require the consent of Lessor or constitute a breach of any provision of this
Lease, and, upon such foreclosure, sale or conveyance, Lessor shall recognize
Lender, or any other foreclosure sale purchaser, as Lessee hereunder.

 

j.                            Personal
Liability of Lender

 

If Lender becomes
Lessee under this Lease or under any new lease obtained pursuant to paragraph
7(l) below, Lender shall be personally liable for the obligations of Lessee
under this Lease or such new lease only for the period of time that Lender
remains Lessee thereunder. Lender shall have the right thereafter to assign or
sublease this Lease or such new lease or to sublease the lease-hold estate and
the improvements thereon under this Lease or such new lease with the prior
written consent of Lessor, which consent shall not be unreasonably withheld;
provided that any assignee (1) shall take the leasehold estate subject to all
provisions of this Lease or such new lease, and (2) shall assume and agree to
perform all obligations of Lessee under this Lease or the new Lease.

 

k.                         Purchase
Money Mortgage as Leasehold Mortgage

 

If Lender
subsequently transfers its interest under this Lease after acquiring the
interest by foreclosure or deed in lieu of foreclosure or subsequently
transfers its interest under any new lease obtained pursuant to paragraph 7(l)
and, in connection with any such transfer, Lender takes back a mortgage or deed
of trust encumbering such leasehold interest to secure all or a portion of the
purchase price given to Lender for such transfer, then such mortgage or deed of
trust shall be considered a Leasehold Mortgage and Lender shall be entitled to
receive the benefit of and to enforce the provisions of this Lease or the new
lease which are intended to benefit a Lender or holder of a Leasehold Mortgage.

 

4

 

l.                            New
Lease

 

If Lessor
terminates this Lease by reason of a default of Lessee described in Section
13(a)(iii) hereof, Lessor shall execute and deliver, upon written request of
Lender given within sixty (60) days after such termination, a new lease of the
Premises to Lender (or its nominee, subject to prior written consent of Lessor
of such nominee, which consent shall not be unreasonably withheld) for the
remainder of the term of this Lease. The new lease shall contain the same
provisions as this Lease except for those obligations which have been fulfilled
by Lessee prior to termination and shall have the same priority as this Lease.
Notwithstanding the foregoing, Lessor shall not be obligated to execute or
deliver a new lease unless Lender shall promptly cure all defaults of Lessee
which are susceptible of cure by Lender. If more than one Lender requests such
a new lease, the Lessor shall execute and deliver the new lease to the Lender
holding the most senior encumbrance. If there is dispute as to which Lender
holds the most senior encumbrance, then such dispute shall be determined by
such Lenders, and if they are unable to do so, then such dispute shall be
submitted to arbitration in accordance with paragraph 28 hereof. Upon execution
and delivery of such new lease, title to the improvements on the Property shall
vest in the new Lessee, subject to the provisions of this Lease, and the rights
and interests conveyed to tenants of the improvements prior to the date of such
new lease. Lessor, at the expense of the new Lessee, shall take such action as
shall be necessary to cancel and discharge this Lease and to remove Lessee from
the Premises.

 

8.                          CONSTRUCTION
OF IMPROVEMENTS

 

a.                         Approval
of Lessor

 

No
excavation of the Property nor construction of any structure or other
improvement of any kind, including, but not limited to fencing, sidewalks or
pavement repair shall be commenced on the Property unless and until preliminary
plans, such as site plans and elevations and proposed location of such
structure or improvement have been approved in writing by Lessor within sixty
(60) days after having been received. Lessor’s approval may be withheld in
Lessor’s sole and absolute discretion. If not expressly disapproved within such
time, such plans shall be deemed to be denied. Any such structure or
improvement shall be built wholly within the boundaries of the Property and in
accordance with the plans approved by Lessor pursuant to this Paragraph. Lessor
shall cooperate with Lessee, and shall execute all applications and documents
reasonably requested by Lessee which relate to construction of the improvements
on the Property, all at Lessee’s sole cost and expense.

 

b.                        Diligence

 

Once
any work of construction has begun, Lessee shall prosecute the same to
conclusion with all reasonable diligence.

 

c.                         Construction
Standards

 

Any such
structure or improvement shall be constructed and all work performed on the
Property shall be in accordance with, all valid laws, ordinances, regulations
and orders of all applicable governmental agencies or entities having
jurisdiction over the Property, including any applicable binding and
enforceable federal, state or local statute, law, rule, regulation, ordinance
or code relating to the environment or hazardous materials or hazardous waste.
All work performed on the Property pursuant to this Lease, or authorized by
this Lease, shall be done in good workmanlike manner and only with materials of
good quality.

 

d.                        Ownership
of Improvements

 

Except
as provided in this Paragraph 8(d), Lessor shall have no ownership interest in
the Data Center or any improvements constructed on the Property by Lessee. Upon
termination of this Lease, Lessee shall surrender to Lessor possession of the
Property, together with all improvements constructed thereon, including,
without limitation, the Data Center, provided, however, Lessee shall, upon
written notice from Lessor, have the improvements demolished and removed from
the Property. Upon any such termination, the leasehold estate created hereby,
and all of Lessee’s right, title and interest in and to the Property, all improvements
thereon, and in and to all subleasehold estates and interests created pursuant
to this Lease, shall automatically revert to and become the sole property of
Lessor. In the event of a termination of this Lease other than by reason of the
expiration of the lease term, Lessor shall take possession of all improvements,
including buildings, from the Lessee subject to the rights and obligations of
sublessees under subleases executed in accordance with this Lease and subject
to the rights of and Lenders secured by Leasehold Mortgages which are set forth
in this Lease. In the event of a termination of this Lease by reason of the
expiration of the lease term, Lessor shall take possession of the Property and
all improvements located thereon from Lessee free and clear of any rights and
obligations of Lessee’s sublessees and Lenders secured by Leasehold Mortgages.

 

5

 

e.                         Mechanics
Liens

 

Lessee
shall pay and discharge when due all expenses incurred by Lessee for the
services of mechanics or for the cost of goods and materials delivered by
materialmen or for equipment leased for the construction of improvements, and
save and hold Lessor harmless from any and all claims by such mechanics or
materialmen for labor or services performed or goods delivered at the request
of the Lessee. Lessee shall have the right to contest the validity or amount of
any asserted lien, claim, or demand, and in such case Lessee shall defend, at
its own expense, any such suits, and shall discharge and satisfy any judgments
taken on account of claims or liens filed by mechanics or materialmen for work
ordered by Lessee.

 

9.                          REPAIRS
AND MAINTENANCE

 

a.                         Lessee’s
Obligation

 

At all
times during the term of this Lease, Lessee shall keep and maintain, at
Lessee’s sole cost and expense, the Property and all improvements now or
hereafter erected thereon and all facilities appurtenant to the Property in
good order and repair and in a safe and clean condition and shall maintain
landscaping, parking, fencing and gates.

 

b.                        Compliance
with Laws

 

At all times during the
term of this Lease, Lessee, at Lessee’s own cost and expense, shall:

 

i.                             Make
all alterations, additions, or repairs to the Property or the improvements or
facilities erected on the Property required by any valid law, ordinance,
statute, order, or regulation now or hereafter made or issued by any federal,
state, county, local, or other governmental agency or entity;

 

ii.                          Observe
and comply with all environmental regulations and other laws, ordinances,
statutes, orders, and regulations now or hereafter made or issued, respecting
the Property or the improvements or facilities erected on the Property, by any
federal, state, county, local, or other governmental agency or entity;

 

iii.                       Contest if
Lessee, in Lessee’s sole discretion, desires by appropriate legal proceedings
brought in good faith and diligently prosecuted in the name of Lessee, or in
the names of Lessee and Lessor where appropriate or required, the validity or
applicability to the Property of any law, ordinance, statute, order, or
regulation now or hereafter made or issued by any federal, state, county, local
or other governmental agency or entity; provided, however, that any such
contest or proceeding, though maintained in the names of Lessee and Lessor,
shall be without cost to Lessor, and Lessee shall protect the Property and
Lessor from Lessee’s failure to observe or comply during the contest with the
contested law, ordinance, statute, order or regulation;

 

iv.                      Indemnify
and hold Lessor and the Property free and harmless from any and all liability,
loss, damages, fines, penalties, claims, fees and costs, including reasonable
attorneys fees, and actions resulting from Lessee’s failure to comply with and
perform the requirements of this Paragraph.

 

c.                         Destruction

 

Except
as provided in Paragraph 9(d), if, at any time during the term of this Lease,
any buildings or improvements now or hereafter erected on the Property shall be
destroyed in whole or in part by any casualty, whether insured or not, this
Lease shall continue in full force and effect without any rent abatement and
Lessee, at Lessee’s own cost and expense, shall repair and restore the damaged
or destroyed building, and improvement to as good or better condition than at
the time of such casualty. The work of repair and restoration shall be
commenced by Lessee within ninety (90) days after the damage or destruction
occurs and shall be completed with due diligence.

 

d.                        Termination
Right

 

Lessee
shall have the option to cancel and terminate this Lease in lieu of restoration
under any of the following circumstances:

 

i.                 If
the replacement costs for such destroyed improvements would exceed eighty
percent (80%) of the fair market value of such improvements immediately
preceding destruction if such destruction was caused by a risk required to be
insured against or would exceed twenty percent (20%) of such fair market value
if such destruction was caused by a risk not required to be insured against.

 

6

 

ii.                          If such
destruction occurs during the last three (3) years of the Lease term (including
extensions thereof) and if the cost of repair or replacement would exceed $
1,000,000.00.

 

If Lessee shall
exercise its option to cancel this Lease, then (i) Lessee shall pay for the
cost of clearing the Property of all debris resulting from the destruction of
Improvements and hold Lessor harmless therefrom; and (ii) insurance proceeds
shall be distributed as follows: first to satisfy and pre-existing and newly
created environmental claims; second to each Lender to the extent of the
unsatisfied obligation represented by such Lender’s encumbrance; third to
Lessee to the extent of the reasonable cost of clean-up of the Property; and
finally, the balance to Lessor.

 

e.                         Escrow

 

Subject
to the provisions of any Leasehold Mortgage, any and all fire or other
insurance proceeds that become payable at any time during the term of this
Lease because of damage to or destruction of any building or improvement on the
Property shall be paid into escrow (or to a trustee) and applied by escrow
holder (or trustee) toward Lessee’s cost of repairing and restoring the damaged
or destroyed building or improvement in the manner required by this Lease. Upon
completion of such restoration, escrow holder or trustee shall distribute any
remaining balance of the insurance proceeds to Lessee.

 

10.                    INDEMNITY

 

Lessee shall
indemnify and hold Lessor, its affiliates and their respective directors,
officers, agents, shareholders, employees and insurers free and harmless from
any and all liabilities, claims, loss, damages, fines, penalties or expenses
(“Liabilities”), including reasonable attorneys fees and cost of defense,
resulting from Lessee’s occupation and use of the Property, specifically
including, without limitation, any Liability arising by reason of:

 

a.                         The death
or injury of any person, including but not limited to, any person who is an
employee, contractor or subcontractor at any tier, tenant, agent,
representative, customer, vendor or invitee of Lessee, or by reason of the
damage to or destruction of any property, including but not limited to,
property owned by Lessee or by any person who is an employee, contractor or
subcontractor at any tier, tenant, agent, representative, customer, vendor or
invitee of Lessee, from any cause whatsoever while such person or property is
in or on the Property or in any way connected with the Property or with any of
the improvements or personal property on the Property;

 

b.                        Any work
performed by Lessee or any person or entity acting on Lessee’s behalf on the
Property or materials furnished in connection with such work;

 

c.                         Environmental
conditions caused directly or indirectly by Lessee, including, but not limited
to, costs of remediation, removal, response or corrective action arising from
such conditions, on, at or under the Property or any other contiguous property
of Lessor, or from non-compliance with any applicable federal, state or local
environmental laws and regulations including, but not limited to, the
unauthorized release or disposal of hazardous materials arising from or related
to the acts or omissions of Lessee, its employees, contractors or
subcontractors at any tier, tenants, agents, representatives, customers,
vendors or invitees of Lessee, regardless when discovered.

 

11.   INSURANCE

 

(a) Without
limiting any of the other obligations or liabilities of Lessee under this
Lease, Lessee shall maintain and shall require all its contractors to maintain
insurance coverage as set forth below and on the certificate of insurance
(“Certificate”) that is attached as Exhibit A and incorporated by this
reference. The Certificate shall be properly completed and signed by a duly
authorized representative or officer of Lessee’s insurance company without alteration,
modification or addition excepting the insertion of policy information in the
spaces provided. The completion and proper execution of the Certificate is a
condition precedent to this Lease. If any of the policies described and
identified in the Certificate expire or otherwise terminate during the term of
this Lease, Lessee must replace the policies before the expiration date with
policies giving the same or comparable coverage which meets Lessor’s approval.
A new Certificate in the same form and for the same or approved coverage and
liability limits as set forth on the attached Certificate must be executed by
Lessee’s insurer and filed with Lessor. The filing of a new Certificate shall
also be a condition precedent to the continuation of this Lease.

 

(b) If any
insurance required of Lessee or its contractors is written on a claims made
basis, for a period of six years from the termination of this Lease or
completion of contractor’s services, Lessee and/or its contractors shall:

 

(i)         Maintain a retroactive date that at a
minimum dates back to the inception of this Lease and/or commencement of
contractor’s services;

 

7

 

(ii)        Use all reasonable efforts to maintain
insurance limits undepleted by losses or reserves fro anticipated losses in the
minimum amounts specified in this Lease; and

 

(iii)       Maintain an extended reporting period
rider which, at a minimum, dates back to the inception of this Lease and/or
commencement of contractor’s services if the claims made insurance is canceled,
not renewed or renewed on a basis other than claims made.

 

(c) The insurance
required by this Lease shall be maintained with insurers acceptable to Lessor
and shall conform in all respect with the laws of the State of Utah.

 

(d) Lessee may
determine the types and amounts of insurance coverage required of its
contractors if the contractors do not maintain insurance coverages as set forth
on Exhibit A, however, Lessee will assume liability for loss of any uninsured
and/or underinsured exposures.

 

(e) Lessee shall
provide prompt notice to Lessor in the event of any bodily injury, death or
property damage arising in connection with this Lease.

 

12.                    ASSIGNMENT AND
SUBLEASING

 

a.                         Assignment

 

Lessee
shall not assign this Lease or any interest herein without the prior written
consent of Lessor, which consent may not be unreasonably withheld. Any
assignment shall not be deemed to be a consent to any subsequent assignment of
this Lease by Lessee.

 

b.                        Subletting

 

Lessee
shall be entitled to freely enter into leases and subleases with respect to any
improvements constructed on the Property. Lessor hereby covenants that it shall
not interfere with or disturb the quiet and peaceful enjoyment of any tenant or
subtenant of Lessee in the event Lessor succeeds to Lessee’s interest in the
leasehold estate or any portion thereof prior to the expiration of the term of
this Lease (including any extensions thereof), provided that any such tenant or
subtenant of Lessee fully complies with all of the provisions of the lease
between Lessee and such tenant

 

c.  Leasehold Mortgages

 

Notwithstanding
anything contained herein to the contrary, the consent of Lessor shall not be
required for any transfer, conveyance or assignment resulting from a
foreclosure or acceptance of a deed in lieu of foreclosure of any Leasehold
Mortgage, or for any transfer, conveyance or assignment by any Leasehold
Mortgagee following its acquisition of this Lease and the leasehold estate of
Lessee created hereby as a result of foreclosure or acceptance of a deed in
lieu of foreclosure.

 

d.  Management Contracts

 

Nothing
contained herein shall preclude Lessee from entering into management or
operating agreements with respect to all or any portion of the Property or
improvements thereon.

 

13.                    DEFAULT AND
REMEDIES

 

a.                         Events of
Default

 

The occurrence of any of
the following shall constitute a default by Lessee:

 

i.                             Failure
to pay any rent or any other charge or sum payable by Lessee to Lessor
hereunder within five days after receipt of notice thereof from Lessor;

 

ii.                          Failure
to perform any other provision of this Lease (other than Sections 5, 8 or 30
hereof) if the failure to perform is not cured within thirty (30) days after
written notice has been given to Lessee; provided, that if such default cannot
reasonably be cured within thirty (30) days, Lessee shall not be in default of
this Lease if Lessee commences to cure the default within the thirty (30) day
period and diligently and in good faith thereafter prosecutes the cure of such
default; or

 

iii.                       Any default
or breach of the provisions of Section 5, Section 8 or Section 30 hereof or any
act or omission of Lessee which is described in Section 6.8(a)(i) or (ii) of
the Asset Purchase Agreement of even date herewith by and between Lessor and Lessee
(“Asset Purchase Agreement”).

 

8

 

b.  Remedies

 

i.                             In
the event of a default by Lessee under this Lease set forth in Sections
13(a)(i) or (ii) hereof, Lessee shall be liable immediately to Lessor for all
liens, claims, demands, actions, causes of action, obligations, penalties,
charges, liability, damages, loss, cost or expense, including reasonable
attorney’s fees for the defense thereof (collectively, the “Losses”) incurred
by Lessor or to which Lessor is subject by reason of such default. In the event
of a default or separate defaults set forth in Sections 13(a)(i) or (ii)
hereof, which occurs or occur during each of three consecutive months or on
more than six occasions during any continuous twenty-four month period, whether
cured by Lessee or otherwise, the monthly rent shall thereupon be increased,
without prior notice or other action from Lessor, to an amount equal to one
hundred fifty percent (150%) of the then current monthly rent.

 

ii.                          In the
event of: (a) a default by Lessee under this Lease set forth in Section
13(a)(iii) hereof; or (b) an act or omission of Lessee described in Section
6.8(a)(i) or (ii) of the Asset Purchase Agreement, Lessee shall be liable
immediately to Lessor for all Losses incurred by Lessor or to which Lessor is
subject by reason of such default, and Lessor may, with or without further
notice or demand of any kind, immediately terminate this Lease and re-enter and
receive possession of the Premises.

 

iii.                       The
remedies given to Lessor in this Lease are not exclusive but shall be
cumulative with and in addition to all remedies now or hereafter allowed by law
or equity. In the event Lessor is entitled to re-enter and receive possession
of the Premises pursuant to Sections 13(b)(i) or (ii), Lessor may remove all
persons and property from the Property, such property to be removed and stored
in a public warehouse or elsewhere at the cost of, and for the account of
Lessee, and without any liability on the part of Lessor.

 

14.                    INTEREST ON
LESSEE’S OBLIGATIONS

 

Rent or other sums
due hereunder from Lessee to Lessor, not paid when due, shall bear interest at
the lesser of (1) twelve percent (12%) or (2) the highest legal rate of
interest from time to time prevailing from the date due until paid.

 

15.                    CONDEMNATION

 

a.                         Total
Taking

 

If
title and possession of all of the Property shall be taken under the power of
eminent domain by any public or quasi-public agency or entity, this Lease shall
terminate as of the date legal title of the Property becomes vested in the
agency or entity exercising the power of eminent domain and both Lessor and
Lessee shall thereafter be released from all obligations under this Lease.

 

b.                        Partial
Taking

 

If
title and possession of only a  portion
of the Property shall be taken under the power of eminent domain by any public
or quasi-public agency or entity, any condemnation award payable by reason of
any structure or improvement constructed on the Property taken by such exercise
of the power of eminent domain shall be available to and used, to the extent
reasonably needed by Lessee, in replacing the structure or improvement so taken
to the extent reasonably practicable under the then existing laws and
conditions on the remaining portion of the Property. Any condemnation award in
excess of Four Million Dollars ($4,000,000.00) shall be held by a condemnation
trustee and shall be released for restoration as required under this Lease. The
trustee shall be a major national bank or similar institution reasonably
designated by Lessee or Lender. If, however, the portion of the Property taken
by eminent domain results in a net loss of more than twenty-five percent (25%)
of the leasable square feet of then existing improvements or if such taking
occurs during the last three years of the Lease term, or any extension thereof,
Lessee may terminate this Lease in the manner set forth below.

 

c.                         Termination
Right

 

Lessee
may terminate this Lease for the reason set forth above by serving written
notice of termination on Lessor within ninety (90) days after Lessee has been
deprived of actual physical possession of the portion of the Property taken by
eminent domain. This Lease shall terminate as of the first day of the calendar
month following the calendar month in which the notice of termination described
in this paragraph is served on Lessor. Notwithstanding any provision to the
contrary, Lessee may not terminate this Lease without the written consent of
every Lender.

 

9

 

d.                        Reduction
of Rent

 

If,
during the term of this Lease, title and possession of only a portion of the
Property is taken under the power of eminent domain by any public or
quasi-public agency or entity and Lessee does not or cannot terminate this
Lease, then this Lease shall terminate as to the portion of said Property taken
under eminent domain. The rent payable under this Lease shall, as of that time,
be reduced by an amount equal to a fraction, the numerator of which shall be
the fair market value of the Property after the taking and the denominator of
which shall be the fair market value of the Property immediately before the
taking, multiplied by the rent then in effect

 

e.                         Allocation
of Award

 

Any
compensation or damages awarded or payable because of the taking of all or any
portion of the Property by eminent domain shall be allocated between Lessor and
Lessee as follows:

 

i.                             Allocation
Where No Termination of Lease.

 

The
award for any taking by eminent domain of the Property which does not result in
the termination of this Lease for the reasons set forth above shall be
apportioned and distributed first to Lessee (or Lender, if directed by Lessee)
in an amount sufficient to rebuild or restore the project as required above,
then to Lessee and Lessor proportionately in the ratio of the fair market value
of their respective interests in the Property taken, as such interests existed
immediately prior to such taking;

 

ii.                          Allocation
Where Lease Terminated.

 

The
award for any taking by eminent domain resulting in the termination of this
Lease as set forth above shall be apportioned and distributed to Lessee and
Lessor proportionately in the ratio of the fair market value of their
respective interests in the Property taken, as such interests existed
immediately prior to such taking.

 

f.                           Notice

 

Lessor
agrees, immediately upon service of process in connection with any
appropriation or taking relating to the Property, to give Lessee notice in
writing thereof.

 

g.                        Further
Performance

 

Each
party agrees to execute and deliver to the other all instruments that may be
required to effectuate the provisions of this Paragraph 15.

 

16.                    ATTORNEYS FEES

 

If litigation is
commenced concerning the Property, this Lease, or the rights and duties of
Lessor or Lessee in relation thereto, the party prevailing in such litigation
shall be entitled to recover reasonable attorney’s fees in such litigation
which shall be determined by the court in such litigation.

 

17.                    NOTICES

 

Except as
otherwise expressly provided by law, any and all notices or other communications
required or permitted by this Lease is to be served on or given by either party
to the other shall be in writing and shall be deemed duly served and given when
delivered in person, or, if mailed, five (5) business days after being
deposited in the United States mail, certified or registered mail, postage
prepaid, addressed to such party as follows:

 

 

	
   

  	
  If to Lessor:

  	
  Questar Gas Company 

  Administrative Services 

  P.O. Box 45360 

  Salt Lake City, Utah 84145-0360

  

 

10

 

	
   

  	
  If to Lessee:

  	
  

  Consonus Acquisition Corp.

  245 Park Avenue, 39th Floor 

  New York, New York 10167

  

 

	
   

  	
  If to Lender (for
  purposes of Section 7):

  	
  U.S. Bank National
  Association 

  PD-UT-GT6 

  15 W. South Temple, 6th Floor

  Salt Lake City, Utah 84101

  

 

18.                    GOVERNING LAW

 

This Lease shall
be construed and interpreted in accordance with the laws of the State of Utah,
from time to time existing.

 

19.                    WAIVER OF
BREACH

 

The waiver by
Lessor of a breach by Lessee of any provision of this Lease shall not constitute
a continuing waiver or a waiver of any subsequent breach by Lessee either of
the same or a different provision of this Lease.

 

20.                    QUIET
POSSESSION

 

Subject to the
terms of this Lease, Lessee, upon full performance of each and every provision
herein, shall peaceably and quietly have, hold and enjoy the Premises
throughout the term hereof without any disturbance from Lessor or any person
claiming through Lessor.

 

21.                    MEMORANDUM OF
LEASE

 

A memorandum of
this Lease shall be executed and acknowledged in recordable form by Lessor and
Lessee and 

may be recorded by either Party.

 

22.                    ENTIRE
AGREEMENT; AMENDMENT

 

This Lease
constitutes the entire agreement of the Parties with respect to the subject
matter hereof. This Lease may only be modified or amended in a writing signed
by both Lessor and Lessee. All understandings and agreements heretofore had
between the Parties are merged into this Lease, which alone fully and
completely expresses their understanding.

 

23.                    SEVERABLE
PROVISIONS

 

The provisions of
this Lease are severable, and if one or more provisions are determined to be
unenforceable, in full or part, by a court of competent jurisdiction, the
validity of the remaining provisions, including any partially unenforceable
provisions, to the extent enforceable, shall not be affected in any respect
whatsoever.

 

24.                    CAPTIONS

 

The captions
appearing on the various paragraphs of this Lease are for convenience only, and
do not in any way limit or amplify the terms and provisions of this Lease.

 

25.                    BINDING ON SUCCESSORS

 

The terms of this
Lease shall be binding on and shall inure to the benefit of the heirs,
executors, administrators, successors and assigns of the Parties hereto.

 

26.                    SINGULAR,
PLURAL AND GENDER

 

The singular and
plural number and the masculine, feminine and neuter gender shall each include
the other.

 

27.                    ENCUMBRANCES
BY LESSOR

 

Lessor shall have
the right to mortgage or otherwise encumber Lessor’s interest in the Property
after the commencement of this Lease, and renew, modify, replace, extend or
refinance such mortgage or encumbrance

 

11

 

(“Ground Mortgage”),
subject to the following:

 

a.                         All
rights acquired under any Ground Mortgage shall be subject and subordinate to
(i) the rights and interests of Lessee under this Lease and the provisions
contained herein; (ii) the rights and interests of any subleases or assignee
permitted hereunder; and (iii) the rights of any holder of any leasehold or
sublease hold mortgage permitted hereby.

 

b.                        The holder
of a Ground Mortgage shall not be deemed a “Lender,” the Ground Mortgage shall
not be deemed a “Leasehold Mortgage,” and the holder of the Ground Mortgage
shall not be entitled to exercise the rights set forth in Paragraphs 7(a)
through (m) hereof. The holder of a Ground Mortgage shall not disturb Lessee or
any sublessee or assignee permitted hereunder in the quiet and peaceful
possession and enjoyment of their interests in connection with holder’s
exercise of its rights under a Ground Mortgage or any instrument modifying,
amending, or replacing such Mortgage, so long as this Lease is in full force
and effect.

 

c.                         If there
is a default under a Ground Mortgage and this Lease is in full force and effect
immediately prior to such default, then, Lessee shall not be made a party in
any proceeding to foreclose the Ground Mortgage, nor shall Lessee or any
sublessee or assignee permitted hereunder be evicted or otherwise disturbed in
their peaceful possession and enjoyment of their respective interests in the
Property. In the event of a foreclosure of a Ground Mortgage or the conveyance
of Lessor’s interest in the Property as a result of a default under a Ground
Mortgage, this Lease shall continue in full force and effect as a direct lease
between the party succeeding to the Lessor’s interest in the Property and
Lessee.

 

d.                        Any Ground
Mortgage shall provide that a Ground Mortgage holder shall simultaneously serve
upon Lessee a copy of any notice which the holder serves upon Lessor.

 

28.                    NON MERGER OF
ESTATES

 

If Lessor shall
become the holder of any mortgage or deed of trust on the leasehold estate or
any part thereof conveyed by this Lease, or if Lessor shall acquire the
leasehold estate or any part thereof, or if Lessee shall acquire the fee simple
title or any other estate in the Property, or if the holder of any mortgage or
deed of trust on the leasehold estate acquires the fee title to any portion of
the Property (while such mortgage or deed of trust encumbers the leasehold
estate), no merger of any estates in the Property shall occur and all estates
shall always be kept separate and distinct

 

29.                    ESTOPPEL
CERTIFICATE

 

Lessee and Lessor
shall, at any time and from time to time during the term of this Lease, and any
extensions thereof, upon not less than ten (10) days prior written request by
the other Party, execute, acknowledge and deliver to the other Party, a
statement in writing certifying that this Lease is unmodified and in full force
and effect (or if there have been any modifications, that the same is in full force
and effect as modified and stating the modifications) and, if so, the dates to
which the rent and other charges have been paid in advance, and that there have
been no defaults of any kind under the Lease (or if there have, the nature and
extent of such default). It is intended that any such statement delivered
pursuant to this paragraph may be relied upon by any prospective purchaser,
encumbrances, or assignee of Lessor or Lessee, respectively.

 

30.                    LESSOR’S
ACCESS.

 

Lessor and
Lessor’s agents shall have the right to enter the Property and the Data Center
at reasonable times upon three days’ prior written notice to Lessee for the
purpose of inspecting the same, showing the same to prospective purchasers or
lenders, and making such repairs to the Property as permitted or required by
this Lease. Notwithstanding the generality of the preceding sentence, Lessor
and Lessor’s agents shall have the unconditional and immediate right throughout
the term of this Lease to enter the Property and the Data Center without prior
notice or fee to Lessee in order to inspect, manage, maintain, repair,
remediate, satisfy, mitigate or otherwise comply with all environmental
matters, including all Environmental Laws and remove or contain Hazardous
Materials as such terms are defined the Asset Purchase Agreement, affecting or
which may affect the Property.

 

31.                    ENVIRONMENTAL
COVENANT.

 

Lessee shall have
no obligation, duty, or liability for the environmental situation at the
Property as described in Section 3.7 to Seller’s Disclosure Schedules
contemplated by the Asset Purchase Agreement (“Pre-Existing Environmental
Condition”), except to the extent that (i) Lessee’s act(s) including, without
limitation, excavation, construction and digging results, directly or
indirectly, in Losses (as defined in the Asset Purchase Agreement) relating

 

12

 

to the Pre-Existing
Environmental Condition or (ii) Lessee fails to act in a commercially
reasonable manner consistent with a prudent data center manager that is unaware
of the existence of the Pre-Existing Environmental Condition and such failure
to act, directly or indirectly, results in Losses relating to the Environmental
Situation.

 

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

 

13

 

In witness whereof, the
parties hereto have executed this Lease as of the date first written above.

 

 

	
   

  	
  Lessor

  	
   

  	
  Lessee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  QUESTAR GAS COMPANY

  	
   

  	
  CONSONUS ACQUISITION

  CORP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Alan K. Allred

  	
   

  	
   

  	
  /s/ Nana Baffour

  	
   

  	
   

  
	
   

  	
  By: Alan K. Allred

  	
   

  	
  By: Nana Baffour

  	
   

  
	
   

  	
  Title: President and CEO

  	
   

  	
  Title: Chairman

  	
   

  
							

 

 

Signature page to Ground LeaseExhibit 10.20

 

SUBLEASE AGREEMENT

 

THIS SUBLEASE
AGREEMENT (Agreement) is entered into as of May 31, 2005, between QUESTAR CORPORATION, (Questar) and CONSONUS ACQUISITION CORP., a Delaware
corporation (Sublessee).

 

RECITALS

 

The parties recite
and declare:

 

A.       Questar is the lessee of an eight story
office building located at 180 East 100 South, Salt Lake City, Utah consisting
of approximately 217,327 square feet of floor rentable area (the Building),
under a lease agreement dated January 10, 1997 (the Master Lease). A copy of
the Master Lease is available upon request.

 

B.        Sublessee desires to obtain space in the
Building for use as a communications and computer equipment site as well as for
general office space.

 

C.        The parties desire to enter an Agreement
defining the rights, duties, and liabilities of the parties.

 

In consideration
of the mutual covenants contained in this Agreement, the parties agree as
follows:

 

Section 1.  Sublease Subject to Master Lease

 

(a)       This Agreement is subject to all of the
terms and conditions of the Master Lease, except as specifically set forth in
this Agreement.

 

(b)       The termination or cancellation of the
Master Lease shall constitute a termination of this Agreement.

 

Section 2.  Description of Leased Premises

 

(a)       Questar hereby leases to Sublessee, and
Sublessee leases from Questar, solely for the purposes set forth in “Recital B”
above, an area of approximately 2,666 square feet of floor rentable area in the
basement of the Building (the Basement Leased Premises). The boundaries and
location of the Basement Leased Premises are indicated on the site plan
attached as Exhibit A. The use and occupation by Sublessee of the Basement
Leased Premises will include use, along with all others entitled, of the common
areas (Common Areas), which are shown in Exhibit A.

 

(b)       Questar also hereby subleases to
Sublessee, and Sublessee, solely for the purposes set forth in “Recital B”
above, leases from Questar, an area of approximately 3,872 square feet of floor
rentable area and 758 square feet of allocated common area of the first floor
of the Building (the Ground Floor Leased Premises). The boundaries and location
of the Ground Floor Leased Premises are indicated on the site plan attached as
Exhibit B. The use and occupation by Sublessee of the Ground Floor Leased
Premises will include use, along with all others entitled, of the common areas,
which are shown on Exhibit B.

 

(c)       The Basement Leased Premises and the
Ground Floor Leased Premises shall be referred to collectively as the Leased Premises.

 

Section 3.  Term

 

(a)       The term of this Agreement shall commence
on the commencement date (Commencement Date), which date shall be May 31, 2005.
The term for lease of the Ground Floor Leased Premises shall be three (3) years
and the term of the Basement Leased Premises shall be three (3) years, both
from the Commencement Date.

 

Section 4.  Rent

 

(a)       During the first 12 months of the term of
this Agreement, Sublessee agrees to pay to Questar, an initial annual Rent for
the Leased Premises of US $233,169.00 payable in monthly installments of US
$19,430.75. This is based on an annual price per square foot of US $56.20 for
Basement Leased Premises and US $18.00 for Ground Floor Leased Premises. At the
end of the respective lease terms of the Ground Floor Leased Premises and the
Basement Leased Premises, this Agreement shall terminate and Sublessee shall
immediately remove all of its equipment and property and return the Leased
Premises to Questar in as good a condition as when this Agreement commenced, normal
wear and tear excepted.

 

(b)       The Base Rent shall be increased by 1%
each year of the term on the anniversary of the Commencement Date.

 

1

 

(c)       All installments shall be payable in
advance, on the first day of each calendar month during the term of this
Agreement. Rent for the first and last months of the term shall be prorated
based upon the number of days during each of those months that this Agreement
is in effect. All Rent shall be paid to Questar without notice, demand,
deduction, or offset, at Questar’s business address or to such other person or
at such other place as Questar may designate in writing.

 

(d)       Payments that are not made within 15 days
after the due date shall be subject to late charges of 11⁄2 percent per month or
at the highest legal rate, whichever is the lower.

 

Section 5.  Holding Over

 

Should Sublessee,
with Questar’s consent, hold over after the termination of this Agreement,
Sublessee shall become a sublessee from month-to-month subject to each and all
of the provisions of this Agreement as may be applicable to such month-to-month
tenancy and any such holding over shall not constitute an extension of this
Agreement. During such holding over, Sublessee shall pay rent at the rate and times
provided for in Section 4. Such tenancy shall continue until terminated upon at
least 30 days prior written notice to Sublessee by Questar or until Sublessee
shall have given to Questar a written notice at least 30 days prior to the date
of termination of such monthly tenancy of its intention to terminate such
tenancy.

 

Section 6.  Acceptance of Premises

 

(a)       Sublessee, by taking possession of the
Leased Premises, shall be deemed to have agreed that the Leased Premises are
then in satisfactory order and condition and that Sublessee shall keep the
Leased Premises in good condition and state of repair.

 

(b)       Sublessee shall not make any alterations,
additions, or improvements on or to the Leased Premises without first obtaining
the written consent of Questar, which consent will not be unreasonably
withheld. All alterations, additions, and improvements that shall be made shall
be at the sole expense of Sublessee and shall become the property of Questar
and shall remain on and be surrendered with the Leased Premises at the
termination of this Agreement without disturbance, molestation, or injury.

 

(c)       Sublessee shall use, occupy, and
maintain, at its own expense, the Leased Premises in accordance with all
applicable environmental, health and/or safety laws, regulations, orders,
permits, or similar legal obligations, now or hereafter made or issued, imposed
by any municipal, county, state, or federal authority (“Environmental Laws”),
or made by any insurance underwriters as a basis of insurance of Questar’s interest
in the Leased Premises. Environmental Laws includes, but is not limited to, all
laws, ordinances, regulations, orders or similar legal obligations imposed by
all applicable government entities or agencies having jurisdiction over the
Leased Premises or Sublessee relating to the environment, hazardous materials,
hazardous substances, hazardous wastes, pollutants, or any other regulated
substance, compound, or waste. Sublessee shall observe and obey the
Environmental Laws and other requirements governing the conduct of Sublessee’s
business with respect to the use of the Leased Premises. Sublessee shall save
Questar harmless from, and indemnify Questar for, any damages, charges,
liability for injury to person or property, suits or costs for any delinquency,
noncompliance or violation of any Environmental Laws caused by Sublessee’s use,
occupancy, or maintenance of the Leased Premises. Sublessee immediately must
provide to Questar, pursuant to Section 18, any notice of delinquency,
noncompliance or violation of any Environmental Laws related to the Leased
Premises or Sublessee’s use, occupancy, or maintenance of the Leased Premises.

 

Section 7.  Services and Utilities

 

(a)       Questar agrees, without charge except as
provided herein, and in accordance with standards from time to time prevailing
for first-class office buildings in the downtown Salt Lake City area, to
provide the following services:

 

i.                             furnish
water for use in lavatories and drinking fountains (and to the Leased Premises
if the plans for the Leased Premises so provide);

 

ii.                          furnish
such heated or cooled air to the Leased Premises during ordinary business hours
as may, in the reasonable judgment of Questar, be reasonably required for the
comfortable use and occupancy of the Leased Premises, provided that Questar
complies with the recommendations of Questar’s engineer or other authorized
representative regarding occupancy and use of the Leased Premises; and

 

iii.                       provide
janitorial services for the Leased Premises (including such interior and
exterior window washing as may be required), such janitorial services to be
provided on non-holiday weekdays, and to furnish such snow removal services to
the Building as may, in the judgment of Questar, be reasonably required for
safe access to the Building.

 

2

 

(b)       Questar shall provide power during
ordinary business hours for normal office purposes, including but not limited
to fluorescent, incandescent and task and task ambient lighting systems, and
for normal office equipment, including but not limited to copying machines,
communications and audio visual equipment, vending machines, computers
(provided they do not require any additional voltage or special electrical
requirements), break-room kitchen equipment, and internal communications
systems; plus power for normal office use. Costs to power the uninterrupted
power supply (UPS) and rack equipment will be metered separately and billed to
Sublessee at the average cost per KWH charged to Questar by Utah Power. Questar
shall have the right, if it reasonably determines, based on its own judgment,
that Sublessee is using electric current for purposes other than those
described above or for other than normal office use, to determine excess usage
based on manufacturer’s specifications or require Sublessee to install a check
meter to measure the surplus power that Sublessee is utilizing. The cost of
such excess usage and the check meter, including but not limited to monitoring,
installation, and repairs of the meter, shall be based on the average cost of
power for the Building and shall be paid by Sublessee. Such payments will be
credited to Questar’s Direct Expenses account.

 

(c)       Questar shall not be liable for failure
to supply any heating, air conditioning, elevator, electrical, janitorial,
lighting, or other services during any period when Questar uses reasonable
diligence to supply such services, or during any period Questar is required to
reduce or curtail such services pursuant to any applicable laws, rules, or regulations,
it being understood and agreed to by Sublessee that Questar may discontinue,
reduce, or curtail any such services at such times as it may be necessary by
reason of accident, unavailability of employees, repairs, alterations,
improvements, strikes, lockouts, and regulations, or due to any other happening
beyond the reasonable control of Questar. In the event of any such
interruption, reduction, or discontinuance of Questar’s services, Questar shall
not be liable for resulting damages to persons or property, nor shall the
occurrence of any such event in any way be construed as an eviction of
Sublessee or cause or permit an abatement, reduction, or set-off of rent, or
operate to release Sublessee from any of Sublessee’s obligations.

 

(d)       If Sublessee requires materially
significant HVAC service for more than 11 hours a day, Monday through Friday
(“After Hours Usage”), such service must be requested from the Building manager
at least four hours in advance. After Hours Usage shall be supplied only in increments
measured by the minimum zoning capacity of the Building, for a minimum of
four-hour periods, with increments of one-half hour thereafter. Sublessee shall
reimburse Questar, as Additional Rent, for all costs and expenses for After
Hours Usage at the rate from time to time established by Questar.
Notwithstanding the foregoing, if in Questar’s determination Sublessee’s demand
for After Hours Usage is or becomes excessive or sufficiently frequent as to so
warrant, Questar may install, at Sublessee’s expense, separate meters to
monitor or control Sublessee’s After Hours Usage, with all costs for the
installation, maintenance, and repair of such meter to be paid by Sublessee.

 

Section 8.  Repairs and Inspection

 

Questar shall have
the right to enter the Leased Premises upon prior reasonable notice, at all
reasonable hours and without interruption to Sublessee’s business, for the
purpose of inspecting the Leased Premises (but not including Sublessee’s
business documents, files, and personal property), to verify and ensure
compliance with all Environmental Laws (defined in Section 6(c)), and/or to
make any repairs, alterations, or additions that Questar shall reasonably deem
necessary for the safety, preservation, or improvement of the Leased Premises
or of the Building. Questar shall be allowed to take all materials into and
upon the Leased Premises that may be required to make repairs, improvements,
additions, or alterations for the benefit of Sublessee without in any way being
deemed or held guilty of an eviction under the Agreement. The rent stipulated
to be paid shall not abate while repairs, alterations, or additions are being
made, nor shall Sublessee be entitled to maintain a set-off or counter-claim
for damages against Questar by reason of loss or interruption to the business
of Sublessee because of the prosecution of any such work; however, Questar
shall use reasonable diligence to complete such repairs in a manner least
disruptive to Sublessee’ use of the Leased Premises. All such repairs,
alterations, additions, and improvements shall be made during ordinary working
hours, or if any such work is done during any other hours at the request of the
Sublessee, Sublessee shall pay for any extra cost occurring because of such
request. In making any such repairs, alterations, or additions, Questar shall
endeavor to minimize the cost and shall have due consideration for Sublessee’s
operations.

 

Section 9.  Destruction of Leased Premises

 

In the event of a
partial destruction of the Leased Premises during the lease term from any
cause, Questar shall make repairs promptly. A partial destruction shall neither
annul nor void this Agreement, except that Sublessee shall be entitled to a
proportionate reduction of rent while the repairs are being made, any
proportionate reduction being based on the extent to which the making of
repairs prevents Sublessee’s use of floor space in the Leased Premises. If
Questar elects not to make repairs that cannot be made within a reasonable
time, or those repairs cannot be made under the laws and regulations of the
applicable governmental authorities, this Agreement may be terminated at the
option of Sublessee.

 

Section 10.  Parking

 

[Parking
to the south of the Building no longer exists] Hourly or
monthly parking may be purchased in Questar’s

 

3

 

parking lots in the
vicinity of the Building at then-current rates.

 

Section 11.  Insurance

 

(a)       Questar agrees to maintain general public
liability insurance against claims for personal and bodily injury, including
death, and property damage covering its obligations under the Master Lease and
this Agreement. Questar further agrees to maintain property insurance for the
replacement cost of the Building. Such insurance shall include, but not be
limited to, coverage for damages resulting from (i) fire, (ii) perils covered
by extended coverage insurance, and (iii) mechanical breakdown of the steam and
pressure boilers and similar apparatus located in the Building. Questar may
carry such other additional insurance coverage as it deems appropriate. All
such insurance shall be procured from a responsible insurance company or
companies or Questar may elect to assume its liabilities and the risk of loss
through deductibles and/or a program of self insurance.

 

(b)       Without limiting any of the other
obligations or liabilities of Sublessee under this Agreement, Sublessee shall
maintain and shall require all its contractors, if any, to maintain insurance
coverage as set forth below and on the certificate of insurance (“Certificate”)
that is attached as Exhibit C and incorporated by this reference. The
Certificate shall be properly completed and signed by a duly authorized
representative or officer of Sublessee’s insurance company without alteration,
modification or addition excepting the insertion of policy information in the
spaces provided. The completion and proper execution of the Certificate is a
condition precedent to this Agreement. If any of the policies described and
identified in the Certificate expire or otherwise terminate during the term of
this Agreement, Sublessee must replace the policies before the expiration date
with policies giving the same or comparable coverage which meets Questar’s
reasonable approval. A new Certificate in the same form and for the same or
approved coverage and liability limits as set forth on the attached Certificate
must be executed by Sublessee’s insurer and filed with Questar. The filing of a
new Certificate shall also be a condition precedent to the continuation of this
Agreement.

 

(c)       If any insurance required of Sublessee or
its contractors is written on a claims-made basis, for a period of six years
from termination of this Agreement or completion of contractor’s services,
Sublessee and/or its contractors shall:

 

i.                             Maintain
a retroactive date that at a minimum dates back to the inception of this
Agreement and/or commencement of contractor’s services;

 

ii.                          Use all
reasonable efforts to maintain insurance limits undepleted by losses or
reserves for anticipated losses in the minimum amounts specified in this
Agreement; and

 

iii.                       Maintain an
extended reporting period rider which, at a minimum, dates back to the
inception of this Agreement and/or commencement of contractor’s services if the
claims-made insurance is canceled, not renewed or renewed on a basis other than
claims-made.

 

(d)       The insurance required by this Agreement
shall be maintained with insurers acceptable to Questar and shall conform in
all respects with the laws of the State of Utah.

 

(e)       Sublessee will maintain, at its own cost
and expense, such property insurance covering its personal property, trade
fixtures and inventory within, on, and/or around the Leased Premises or any
other insurance as Sublessee may deem appropriate. All such insurance will
contain a waiver of subrogation in favor of Questar, its affiliates and all of
their respective directors, officers, agents, employees and insurers.

 

Section 12.  Indemnity

 

(a)       Sublessee agrees to release, indemnify,
hold harmless and, at Questar’s option, defend Questar and its affiliated
companies including all of their respective directors, officers, agents,
employees and insurers (Indemnified Parties), and to require all contractors to
release, indemnify and hold the Indemnified Parties harmless from any and all
liabilities, losses, claims, demands, actions, including reasonable attorney’s
fees and court costs, arising out of or in connection with Sublessee’s
activities in and around the Building or under this Agreement, except as a
result of Questar’s willful misconduct.

 

(b)       This indemnification includes, but is not
limited to, liabilities in favor of claimed, demanded or brought by Sublessee’s
employees or contractors, employees of the Indemnified Parties, or third
parties, including but not limited to Sublessee’s tenants, agents,
representatives, customers, vendors or invitees, on account of injury, death,
property damage or other losses.

 

4

 

Section 13.  Condemnation

 

A condemnation of
the entire Building occupied by Sublessee shall result in a termination of this
Agreement. Upon condemnation of 25% or more of the Leased Premises, Sublessee
may elect to terminate this Agreement or to pay a mutually agreeable reduced
rental payment. The total of any consequential damages awarded as a result of
condemnation proceedings shall be divided as awarded by the court.

 

Section 14.  Breach or Default

 

Sublessee shall
have breached this Agreement and shall be considered in default if (i)
Sublessee fails to pay any rent when due and does not make the delinquent
payment within 30 days after receipt of notice from Questar, or (ii) Sublessee
fails to perform or comply with any of the covenants or conditions of this
Agreement and such failure continues for a period of 15 days after receipt of
notice from Questar.

 

Section 15.  Right to Cure

 

In the event of
breach of any of the terms of this Agreement by Sublessee other than nonpayment
of rent, which is specifically dealt with in Section 16, Questar agrees to give
Sublessee written notice that such breach or breaches have occurred. Sublessee
shall be afforded the opportunity to remedy any breach within 30 days after
receipt of notice. If Sublessee shall not have remedied such breach within 30
days after receipt of notice, Questar may then terminate the Agreement or
pursue any other remedy for breach of terms, conditions, or covenants reserved
under this Agreement to Questar or granted to Questar in law or equity.

 

Section 16.  Effect of Breach

 

In the event of
any material breach of this Agreement not cured by Sublessee, Questar, apart
from other rights or remedies it may have or exercise, shall have the immediate
right of re-entry and may remove all persons and personalty from the Leased
Premises; such personalty may be removed and stored in any other place that
Questar, at its reasonable discretion, selects for and at the expense and risk
of Sublessee. Further, Sublessee hereby waives all claims for damages that may
be caused by Questar in non-negligent, non-willful misconduct at re-entry and
taking possession of the Leased Premises. Sublessee hereby agrees to save and
hold Questar harmless from and against any resulting non-negligent, non-willful
loss, costs, or damages, and no such re-entry shall be considered or construed
to be a forcible entry. In addition to any other rights available to Questar by
virtue of a default or breach of Sublessee under this Agreement, Questar may
also terminate this Agreement or may (without such termination) relet the
Leased Premises and Sublessee shall pay all reasonable costs of such reletting
including (without being limited to) commissions and alterations or
redecorating expense.

 

Section 17.  Representations and Warranties

 

Questar covenants
and agrees that the Sublessee, on paying the rents and observing and keeping
the covenants, agreements, and stipulations of this Agreement to be kept and
performed on its part, shall lawfully, peaceably, and quietly hold, occupy, and
enjoy the Leased Premises during the term of the Agreement, without hindrance,
objection, or molestation. Questar makes no representation nor warranty
regarding the adequacy of electrical power, heating, cooling or structural
capability for any specialized use desired of the Basement Leased Premises by
Sublessee.

 

Section 18.  Authorities for Action and Notice

 

(a)       Questar may act in any matter provided
for herein by its designated facility manager and by any other person who may
from time to time be designated in writing by Questar to act on its behalf.
Likewise, Sublessee shall designate a person or persons authorized to act on
its behalf.

 

(b)       All notices or demands required or
permitted to be given to Questar hereunder shall be in writing, and shall be
deemed duly served when delivered personally to the facility manager designated
by Questar at the office of such facility manager, or when deposited in the
United States mail, postage prepaid, certified or registered, return receipt
requested, addressed to Questar at the address stated below, or at such other
address as Questar may from time to time specify in writing. All notices or
demands required to be given to the Sublessee shall be in writing and shall be
deemed duly served when delivered personally to the individual designated to
act for Sublessee, or when deposited in the United States mail, postage
prepaid, certified or registered, return receipt requested, addressed to
Sublessee at the address given below, or at Sublessee’s address in the
Building, if Sublessee has taken possession of the Leased Premises, or at such
other address as Sublessee may from time to time specify in writing.

 

(c)       Questar’s address and representative
shall be:

 

5

 

Questar
Corporation

180 East 100 South

P.O. Box 45433

Salt Lake City, Utah 84145-0433

Representative: Roger Barrus

Telephone:               (801)
324-3002

 

Sublessee’s
address and representative shall be:

 

Consonus
Acquisition Corp.

245 Park Avenue, 39th Floor

New York, New York 10167

Representative: Nana Baffour, Chairman

Telephone:               (212)
672-1782

 

 

Section 19.  Successors and Assigns

 

This Agreement
shall be binding upon and inure to the benefit of the successors and assigns of
Questar, and shall be binding upon and inure to the benefit of Sublessee and
Sublessee’s successors, assigns, and personal representatives to the extent
assignment may be approved by Questar.

 

Section 20.  Assignment and Subletting

 

Sublessee shall
not assign this Agreement or any interest therein. Any assignment without the
consent of Questar shall be void, and shall, at the option of Questar,
terminate this Agreement. Sublessee shall have the right to sublease the Leased
Premises as part of its network hosting and co-location business.

 

Section 21.  Attornment

 

Questar hereby
reserves the right to transfer and assign all of its right, title, and interest
in and to the Building, including this leasehold, at any time, and Sublessee
hereby agrees that any such transfer or assignment by Questar shall operate to
release Questar from any further liability upon any of the covenants or
conditions, expressed or implied, contained in this Agreement in favor of
Sublessee, and, in such event, Sublessee further agrees to look solely to the
responsibility of Questar’s successor in interest. Moreover, this Agreement
shall not be affected by any such transfer or assignment of Questar’s interest,
and Sublessee agrees to attorn to any such assignee or transferee of Questar,
provided such assignee or transferee shall specifically assume the obligations
of Questar under this Agreement.

 

Section 22.  Liens and Encumbrances

 

Sublessee agrees
that it shall not at any time during the term of this Agreement permit, allow,
or suffer any lien or other encumbrance to be attached to the Leased Premises
or to the Building of which they are a part or to the land on which the
Building is located. Sublessee’s failure in this regard shall constitute a
default and enable Questar to invoke all remedies available under this
Agreement or applicable law in relation to such default.

 

Section 23.  Authority

 

Each person
signing this Sublease Agreement warrants that the person has full legal
capacity, power, and authority to execute this Sublease Agreement for and on
behalf of the respective Party and to bind such Party.

 

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

 

6

 

IN WITNESS
WHEREOF, as of the date first written above, the parties, through their
respective authorized representatives, have executed this Agreement, consisting
of Sections 1 through 23, inclusive, and Exhibits A, B and C.

 

	
  SUBLESSEE:

  CONSONUS ACQUISITION CORP.

  	
   

  	
  QUESTAR:

  QUESTAR CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Nana Baffour

  	
   

  	
   

  	
  By:

  	
  /s/ Alan K. Allred

  	
   

  
	
   

  	
  Nana Baffour

  	
   

  	
   

  	
  Alan K. Allred

  
	
   

  	
  Chairman

  	
   

  	
   

  	
  Executive Vice President

  
							

 

 

Signature
page to Sublease

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]