Document:

Exhibit 10.9

 

CONSONUS
TECHNOLOGIES, INC.

 

DEFERRED
STOCK AGREEMENT

 

FOR

 

This DEFERRED STOCK AGREEMENT (the
“Agreement”) is made and entered
into effective as of                                  ,
by and between CONSONUS TECHNOLOGIES, INC.,
a company organized under the laws of the State of Delaware (“Company”) 
and                                     
(the “Recipient”).

 

W  I  T  N
E  S  S  E  T  H:

 

WHEREAS, the Company
maintains the Consonus Technologies, Inc. 2007 Incentive Compensation Plan
(the “Plan”) which authorizes
grants of Deferred Stock, and

 

WHEREAS, the Company
wishes to make a grant of Deferred Stock to the Recipient as a means of
rewarding and retaining the Recipient;

 

NOW, THEREFORE, for
and in consideration of the mutual premises, covenants and agreements contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

1.             Grant Pursuant to Plan. This Deferred Stock
award is granted pursuant to the Plan which is incorporated herein for all
purposes. The Recipient hereby acknowledges receipt of a copy of the Plan and
agrees to be bound by all of the terms and conditions of this Agreement and of
the Plan. Unless otherwise provided herein, terms used in this Agreement that
are defined in the Plan and not defined herein shall have the meanings
attributable thereto in the Plan.

 

2.             Award of Deferred Stock. The Committee
hereby grants, as of                                  ,
200  , to the Recipient, the right to receive, at the time specified
in Section 3 hereof,                
shares of common stock, par value $0.000001 (the “Common Stock”), of the Company, subject to the terms,
provisions and restrictions set forth in this Agreement (the “Deferred Stock”).

 

3.             Vesting and Forfeiture of Deferred Stock.

 

(a)           Vesting.
Except as otherwise provided in Sections 3(c) and (d) hereof, the
Deferred Stock shall vest in the following amounts, upon the satisfaction of
the following conditions at the following times (the “Vesting Date(s)”), provided that the
Continuous Service of the Recipient with the Company and its Related Entities
continues through and on the applicable Vesting Date:

 

 

	
  Number of Shares of Deferred Stock

  	
   

  	
  Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
                   ,
  200  , so long as the individual performance goals set by the
  Committee for the period
                   ,
  200     through                   ,
  200    are met

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
                   ,
  200  , so long as the individual performance goals set by the
  Committee for the period
                   ,
  200     through
                    ,
  200    are met

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
                   ,
  200  , so long as the individual performance goals set by the
  Committee for the period
                   ,
  200     through
                    ,
  200    are met

  	
   

  

 

(b)           Forfeiture.
The Recipient shall forfeit the unvested portion, if any, of the Deferred Stock
in the event that the Recipient’s Continuous Service is terminated for any
reason, except as otherwise determined by the Committee in its sole discretion.

 

(c)           Accelerations.
Notwithstanding anything to the contrary herein, the Committee shall be
authorized, in its sole discretion, based upon its review and evaluation of the
performance of the Recipient and of the Company and its Related Entities, to
accelerate the vesting of any shares of Deferred Stock under this Agreement, at
such times and upon such terms and conditions as the Committee shall deem
advisable.

 

4.             Settlement of the Deferred Stock. The Company
shall deliver shares of Common Stock corresponding to the Deferred Stock which
is the subject of this Agreement to the Recipient on the “Vesting Date” as
determined in accordance with Section 3 hereof, or, if earlier, on the
date on which an acceleration event occurs pursuant to Sections 3(c) or (d) hereof.

 

5.             Rights with Respect to Awarded Stock.

 

(a)           No Rights as Shareholder Until Delivery. Except
as otherwise provided in this Section 5, the Recipient shall not have any
rights, benefits or entitlements with respect to the shares of Common Stock
corresponding to the Deferred Stock unless and until those shares of Common
Stock are required to be delivered to the Recipient. On or after delivery, the
Recipient shall have, with respect to the Common Stock delivered, all of the
rights of an equity interest holder of the Company, including the right to vote
the Common Stock and the right to receive all dividends, if any, as may be
declared on the Common Stock from time to time.

 

(b)           Adjustments. In the event that the number
shares of Common Stock of the Company, as a result of a combination of the
Common Stock or any other change or 

 

2

 

exchange for
other securities, by reclassification, reorganization or otherwise, is
increased or decreased or changed into or exchanged for a different number or
kind of Common Stock or other securities of the Company or of another entity,
the number of shares of Deferred Stock subject to this Agreement shall be
appropriately adjusted to reflect that change. If any adjustment shall result
in a fractional share, the fraction shall be disregarded.

 

(c)           Taxes. The Company and any Related Entity
are authorized to withhold from any Deferred Stock granted, any payment
relating to the Deferred Stock under this Agreement, including from a
distribution of Common Stock, or any payroll or other payment to a Recipient,
amounts of withholding and other taxes due or potentially payable in connection
with any transaction involving the Deferred Stock, and to take such other
action as the Board may deem advisable to enable the Company or any
Related Entity and the Recipient to satisfy obligations for the payment of
withholding taxes and other tax obligations relating to any Deferred Stock. This
authority shall include authority to withhold or receive Common Stock or other
property and to make cash payments in respect thereof in satisfaction of a
Recipient’s tax obligations, either on a mandatory or elective basis in the
discretion of the Board. Notwithstanding the foregoing, the Recipient may elect,
by written notice to the Company, that all or any portion of any withholding
taxes imposed as a result of the delivery of shares of Common Stock
corresponding to the Deferred Stock be satisfied with shares of Common Stock
that otherwise would have been delivered to the Recipient pursuant to this
Agreement having a fair market value (determined on the same basis as the
delivered shares are valued for federal income tax purposes) equal to the
required withholding.

 

6.             Restrictions While Deferred Stock is Not Registered.
The shares of Common Stock delivered to the Recipient as a result of this grant
of Deferred Stock, and (a) all shares of the Company’s capital stock
received as a dividend or other distribution upon such Common Stock, and (b) all
shares of capital stock or other securities of the Company into which such
Common Stock may be changed or for which such shares shall be exchanged,
whether through reorganization, recapitalization, stock split-ups or the like
(hereinafter referred to collectively as the “Awarded
Stock”), shall be subject to the provisions of this Section 6
only at those times that the shares of Common Stock are not registered under
the Securities Exchange Act of 1934, as amended (such times during which the
shares are not so registered hereinafter being referred to as the “Restricted Period”).

 

(a)           No Sale or Pledge of Deferred Stock. Except
as otherwise provided herein, the Recipient agrees and covenants that during
the Restricted Period he shall not sell, pledge, encumber or otherwise transfer
or dispose of, and shall not permit to be sold, encumbered, attached or
otherwise disposed of or transferred in any manner, either voluntarily or by
operation of law (all hereinafter collectively referred to as “transfers”), all or any portion of the
Awarded Stock which may be transferred in accordance with and subject to
the terms of this Section 6.

 

(b)           Voluntary Transfer Repurchase Option. If
the Recipient desires to effect a voluntary transfer of any of the Awarded
Stock during the Restricted Period, the Recipient shall first give written
notice to the Company of such intent to transfer (the “Offer Notice”) specifying (i) the
number of the shares of the Awarded Stock (the “Offered Shares”) and the date of the proposed transfer (which
shall not be less than thirty (30) days after the giving 

 

3

 

of the Offer
Notice), (ii) the name, address, and principal business of the proposed
transferee (the “Transferee”), and
(iii) the price and other terms and conditions of the proposed transfer of
the Offered Shares to the Transferee. The Offer Notice by the Recipient shall
constitute an offer to sell all, but not less than all, of the Offered Shares,
at the price and on the terms specified in such Offer Notice, to the Company
and/or its designated purchaser. If the Company desires to accept the Recipient’s
offer to sell, either for itself or on behalf of its designated purchaser, the
Company shall signify such acceptance by written notice to the Recipient within
thirty (30) days following the giving of the Option Notice. Failing such
acceptance, the Recipient’s offer shall lapse on the thirty-first day following
the giving of the Option Notice. With such written acceptance, the Company
shall designate a day not later than the later of (i) twenty (20) days
following the date of giving its notice of acceptance, or (ii) the closing
date in the Offer Notice, on which the Company or its designated purchaser
shall deliver the purchase price of the Offered Shares (in the same form as
provided in the Offer Notice) and the Recipient shall deliver to the Company or
its designated Purchaser, as applicable, all certificates evidencing the
Offered Shares endorsed in blank for transfer or with separate stock powers
endorsed in blank for transfer. Upon the lapse without acceptance by the
Company of the Recipient’s offer to sell the Offered Shares, the Recipient
shall be free to transfer the Offered Shares to the Transferee (and no one
else), for a price and on terms and conditions which are no more favorable to
the Transferee than those set forth in the Offer Notice, for a period of thirty
(30) days thereafter, but after such period the restrictions of this Section 6
shall again apply to the Deferred Stock. The Offered Shares so transferred by
the Recipient to the Transferee shall continue to be subject to all of the
terms and conditions of this Section 6 and the Company shall have the
right to require, as a condition of such transfer, than the Transferee execute
an agreement substantially in the form and content of the provisions of
this Section 6.

 

(c)           Involuntary Transfer Repurchase Option. Whenever,
during the Restricted Period, the Recipient has any notice or knowledge of any attempted,
pending, or consummated involuntary transfer or lien or charge upon any of the
Awarded Stock, whether by operation of law or otherwise, the Recipient shall
give immediate written notice thereof to the Company. Whenever the Company has
any other notice or knowledge of any such attempted, impending, or consummated
involuntary transfer, lien, or charge, it shall give written notice thereof to
the Recipient. In either case, the Recipient shall disclose forthwith to the
Company all pertinent information in his possession relating thereto. If during
the Restricted Period any of the shares of Awarded Stock are subjected to any
such involuntary transfer, lien, or charge, the Company and its designated
purchaser shall at all times have the immediate and continuing option to
purchase such Awarded Stock upon notice by the Company to the Recipient or
other record holder at a price and on terms determined according to Section 6(e) below,
and any of the Awarded Stock so purchased by the Company or its designated
purchaser shall in every case be free and clear of such transfer, lien, or
charge.

 

(d)           Excepted Transfers. The provisions of
Sections 6(a) and (b) shall not apply to a voluntary assignment,
bequest or testamentary transfer, in trust or otherwise, by the Recipient (or
upon the Recipient’s death, a subsequent transfer incident to such death
pursuant to a will or a trust, or occurring by operation of law, effected by
the heirs, personal representatives, or trustees of the Recipient having
authority to transfer the Awarded Stock in question), which is (i) to or
for the benefit of any member of the Recipient’s immediate family, specifically
the Recipient’s spouse, parents and grandparents, children and their direct
descendants, brothers and 

 

4

 

sisters,
nieces, nephews and their direct descendants and the spouses of any of them; (ii) to
a corporation, partnership, limited liability company or other business entity,
at least fifty-one percent (51%) of each class of the voting stock or
other voting interests of which is owned by the Recipient and/or one or more of
the individuals described in clause (i) above; or (iii) to a trust,
the beneficiaries of which are any of the individuals or entities described in
clauses (i) or (ii) above. In the event that the Recipient transfers
any Awarded Stock pursuant to this Section 6(d), the Recipient shall
continue to be subject to all of the terms and provisions of this Section 6
with respect to any remaining present or future interest whatsoever he may have
in the transferred Awarded Stock, and, further provided that any Awarded Stock
transferred pursuant to this subsection (d) shall continue to be
subject to the restrictions contained in this Section 6 and the transferee
of any such Awarded Stock shall likewise be subject to all such terms and
conditions of this Section 6 as though such transferee were a party
hereto.

 

(e)           Repurchase Price. For purposes of Section 6(c) hereof,
the per share purchase price for the Awarded Stock shall be equal to the fair
market value of the Awarded Stock, determined by the Committee as of any date
that is not more than one year prior to the date of the event giving rise to
the Company’s right to purchase such Awarded Stock. Any determination of fair
market value made by the Committee shall be binding and conclusive on all
parties unless shown to have been made in an arbitrary and capricious manner.
The purchase price shall, at the option of the Company, be payable in cash or
in the form of the Company’s promissory note payable in up to three equal
annual installments commencing 12 months after the acquisition by the Company (“Acquisition Date”) of the Awarded Stock,
together with interest on the unpaid balance thereof at the rate equal to the
prime rate of interest of Citibank, N.A. on the Acquisition Date.

 

7.             Amendment, Modification & Assignment;
Non-Transferability. This Agreement may only be modified or
amended in a writing signed by the parties hereto. No promises, assurances,
commitments, agreements, undertakings or representations, whether oral,
written, electronic or otherwise, and whether express or implied, with respect
to the subject matter hereof, have been made by either party which are not set
forth expressly in this Agreement. Unless otherwise consented to in writing by
the Company, in its sole discretion, this Agreement (and the Recipient’s rights
hereunder) may not be assigned by the Recipient, and the obligations of
the Recipient hereunder may not be delegated, in whole or in part. The
rights and obligations created hereunder shall be binding on the Recipient and
his heirs and legal representatives and on the successors and assigns of the
Company.

 

8.             Complete Agreement. This Agreement
(together with the Employment Agreement, Amendment Agreement and those
agreements and documents expressly referred to herein, for the purposes
referred to herein) embody the complete and entire agreement and understanding
between the parties with respect to the subject matter hereof, and supersede
any and all prior promises, assurances, commitments, agreements, undertakings
or representations, whether oral, written, electronic or otherwise, and whether
express or implied, which may relate to the subject matter hereof in any
way.

 

5

 

9.             Miscellaneous.

 

(a)           No Right to Continuous Service. This
Agreement and the grant of Deferred Stock hereunder shall not confer, or be
construed to confer, upon the Recipient any right to Continuous Service with
the Company or any Related Entity.

 

(b)           No Limit on Other Compensation Arrangements.
Nothing contained in this Agreement shall preclude the Company or any Related
Entity from adopting or continuing in effect other or additional compensation
plans, agreements or arrangements, and any such plans, agreements and
arrangements may be either generally applicable or applicable only in
specific cases or to specific persons.

 

(c)           Severability. If any term or provision of
this Agreement is or becomes or is deemed to be invalid, illegal or
unenforceable in any jurisdiction or under any applicable law, rule or
regulation, then such provision shall be construed or deemed amended to conform to
applicable law (or if such provision cannot be so construed or deemed amended
without materially altering the purpose or intent of this Agreement and the
grant of Deferred Stock hereunder, such provision shall be stricken as to such
jurisdiction and the remainder of this Agreement and the grant hereunder shall
remain in full force and effect).

 

(d)           No Trust or Fund Created. Neither this
Agreement nor the grant of Deferred Stock hereunder shall create or be
construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Related Entity and the Recipient or any
other person. To the extent that the Recipient or any other person acquires a
right to receive payments from the Company pursuant to this Agreement, such
right shall be no greater than the right of any unsecured general creditor of
the Company.

 

(e)           Law Governing. This Agreement shall be
governed by and construed and enforced in accordance with the internal laws of
the State of Delaware (without reference to the conflict of laws rules or
principles thereof).

 

(g)           Headings. Section, paragraph and other headings
and captions are provided solely as a convenience to facilitate reference. Such
headings and captions shall not be deemed in any way material or relevant to
the construction, meaning or interpretation of this Agreement or any term or
provision hereof.

 

(h)           Notices. Any notice under this Agreement
shall be in writing and shall be deemed to have been duly given when delivered
personally or when deposited in the United States mail, registered, postage
prepaid, and addressed, in the case of the Company, to the Company’s President
at 301 Gregson Drive, Cary, North Carolina 27511, or if the Company should move
its principal office, to such principal office, and, in the case of the
Recipient, to the Recipient’s last permanent address as shown on the Company’s
records, subject to the right of either party to designate some other address
at any time hereafter in a notice satisfying the requirements of this Section.

 

(i)            Non-Waiver of Breach. The waiver by any
party hereto of the other party’s prompt and complete performance, or breach or
violation, of any term or provision of this Agreement shall be effected solely
in a writing signed by such party, and shall not operate nor be construed as a
waiver of any subsequent breach or violation, and the waiver by any party
hereto 

 

6

 

to exercise
any right or remedy which he or it may possess shall not operate nor be
construed as the waiver of such right or remedy by such party, or as a bar to
the exercise of such right or remedy by such party, upon the occurrence of any
subsequent breach or violation.

 

(j)            Counterparts. This Agreement may be
executed in two or more separate counterparts, each of which shall be an
original, and all of which together shall constitute one and the same
agreement.

 

(k)           Section 409A. The provisions of this
Agreement are intended to comply with the requirements of Section 409A of
the Code and shall be interpreted in a manner consistent with (and modified by
the parties to the extent necessary to comply with) those requirements.

 

 

IN WITNESS WHEREOF,
the parties hereto, intending to be legally bound, have executed this Agreement
as of the date first written above.

 

	
   

  	
  CONSONUS TECHNOLOGIES, INC., a

  company organized under the laws of the

  State of Delaware

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and
  Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  RECIPIENT:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
							

 

7Exhibit 10.10

 

CONSONUS ESCROW AGREEMENT

 

THIS CONSONUS 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”) Knox Lawrence International, LLC, a Delaware limited
liability company (the “Consonus 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 Consonus 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 Consonus Holders have appointed Knox Lawrence International, LLC
as Consonus 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. Consonus, Consonus Holders’ Agent and the Company hereby irrevocably
appoint the Escrow Agent as escrow agent to receive, hold, administer and
deliver the Consonus 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 Consonus Escrow Shares to the Escrow
Agent. It is the parties’ intention that, subject to the terms and conditions
set forth herein, the Consonus Escrow Fund shall be available to fund
indemnification payments required by the Consonus Holders pursuant to the
Merger Agreement and that the Escrow Agent shall dispose of the Consonus 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 STI,
as applicable, has 

 

 

 

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

 

3.             INVESTMENT AND
MANAGEMENT OF ESCROW FUND. All Consonus 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 Consonus Holders. The Consonus
Holders shall retain full voting power over all Consonus 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 Consonus Escrow Shares to which such
distribution relates, by check mailed via first class mail, to the Consonus
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
Consonus Escrow Fund shall be added to the Consonus Escrow Fund and become a
part thereof. The Consonus 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 Consonus Escrow Fund until it
delivers all or part of the Consonus Escrow Fund as provided in this Section 4,
as follows:

 

(a)           With respect to Claims
made against the Consonus 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 Consonus Escrow
Fund as promptly as practicable, Consonus 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 STI, as applicable, will, simultaneously with the
delivery of the Officer’s Certificate to the Escrow Agent, deliver a copy
thereof to the Consonus Holders’ Agent.

 

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

 

2

 

(c)           On the Escrow Expiration Date, the remaining
amount of the Consonus Escrow Fund shall promptly be delivered to the Consonus
Holders in accordance with the Consonus Payment Schedule; provided, however,
that the escrow period shall not terminate with respect to any amount of the
Consonus 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
Consonus 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 “Consonus Unresolved Claim”). Promptly following resolution of each
such Consonus Unresolved Claim, and subject to satisfaction of any then
outstanding but unpaid out-of-pocket costs and expenses reasonably incurred by
the Consonus Holders’ Agent in connection with actions taken by the Consonus
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 Consonus Escrow Fund not required to
satisfy such Claims, Agent Indemnity or Agent Expenses, to the Consonus Holders
in accordance with the Consonus Payment Schedule.

 

5.             DISPUTE RESOLUTION.

 

(a)           If the Consonus Holders’ Agent objects in
writing to any Claim by the Company or STI made in any Officer’s Certificate,
the Company or STI, 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 Consonus Holders’
Agent. If after such forty-five (45) day period there remains a dispute as to
the Claim, the Consonus Holders’ Agent and a representative of the Company or
STI, 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
Consonus Holders’ Agent and the Company or STI, 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 Consonus
Escrow Shares from the Consonus Escrow Fund in accordance with the terms
thereof.

 

(b)           If no such agreement can be reached after
good faith negotiation, either the Company or STI, as applicable, or the
Consonus 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 STI, as applicable, and the Consonus
Holders’ Agent. In the event that within thirty (30) days after submission of
any dispute to arbitration, the Company or STI, as applicable, and Consonus
Holders’ Agent cannot mutually agree on one (1) arbitrator, the Company or STI,
as applicable, and the Consonus 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 

 

3

 

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 Consonus Escrow
Fund in accordance therewith.

 

(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 STI, as applicable,
shall be deemed to be the non-prevailing party, unless the arbitrators award
the Company or STI, 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 Consonus Escrow Shares held in
the Consonus Escrow Fund on behalf of the applicable Indemnifying Parties (to
the extent that such Consonus 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 Consonus Escrow Fund or the duties of the Escrow Agent
hereunder, deposit the Consonus 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 Consonus
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 

 

4

 

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 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 Consonus Escrow Fund, without determination by the Escrow Agent
of such court’s jurisdiction in the matter. If any portion of the Consonus
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 Consonus Holders’
Agent, the Company and STI and delivering the Consonus Escrow Fund to a
successor Escrow Agent jointly designated by the Consonus Holders’ Agent, the
Company and STI 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 

 

 

5

 

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.

 

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 Consonus Holders’ Agent:

  
	
   

  	
   

  
	
   

  	
  Knox
  Lawrence International, LLC

  
	
   

  	
  445 Park
  Avenue 20th Floor

  
	
   

  	
  New York, NY
  10022

  
	
   

  	
  Attention:
  Nana Baffour

  
	
   

  	
  Telecopy
  No.:    

  
	
   

  	
  Telephone
  No.:    

  
	
   

  	
   

  
	
   

  	
  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 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

  

 

 

6

 

	
   

  	
  If to the
  Escrow Agent:

  
	
   

  	
   

  
	
   

  	
  Branch
  Banking and Trust Company

  
	
   

  	
  223 West
  Nash Street

  
	
   

  	
  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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONSONUS HOLDERS’ AGENT

  
	
   

  	
   

  
	
   

  	
  KNOX LAWRENCE INTERNATIONAL, LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/Nana Baffour

  	
   

  
	
   

  	
   

  	
  Nana Baffour, Managing Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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 CONSONUS 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.

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