Ltr and agreement

. l



I









'*'':,.u,u^^YEhi,

Rapid LLC

communications .f,d ll*'''it ?$08

i\l

Rapid Acquisition co., LLC M

nttltH;3llt3'd;,5;uoo \dmi'i'r'"r-

c"'''i""icners

*

Office303-697-8602 Fax 303-697-2217



GalNeva Broadband, tLG

P.O. Box3200

Clovis, 93613

CA

Office559-298-1464







November 2008

30.







Winnemucca

50 W 5th Street

Room 207

Winnemucca, NV 89445



RE: ASSET PURCHASE AGRIIMENI'dated as of November 5,2008 by and among CalNeva

Broadband, LLC and Rapid Communications LLC, and Rapid Acquisition Co., LLC'



Dear Sir/Madam:



On behalf of CalNeva, LLC ("CalNeva"), Rapid Communications LLC and Rapid Acquisition Co., LLC

("Rapid"), the purposeof this letter is to announcethe pendingacqr-risition the cable systemservingyour

of

communityby CalNeva. Your consent the transferof your local franchise required. Accordingly,we have

to is

enclosedmaterialsregardingthe transaction your review and a draft consentresolution. We very muclr

for

appreciateyour consideration thesematerials.

of



CalNevais very excitedaboutthe acquisition the cablesystemand looks forwardto servingyour community.

of

by

It is operated seasoned cable communications who bring many years of solid experience

professionals and

quality service to the communitiesthey serve. For more information on CalNeva, pleaserefer to the attached

FCC Form 394. As clearly demonstrated the informationcontainedin this submission,

by CalNeva is well

qualifiedand meetsall applicablecriteriarequired federal,

by stateand local law.



you in reviewingthe transaction facilitatingthe consent

Sinceyour consentis requiredand in orderto assist and

process, partieslierebysubmitnot only the aforementioned

the resolution.

FCC Forrn394 but alsoa draft conseltt

The partieshopeto consummate thistransaction soonas practicable.

as l'herefore, would askthat you review

we

andadopt attached

the consenting thetransfer yourearliest

resolution to at possible

convenience return to:

and it



Kris Swentzell

RapidCommunications LLC

9200W. CrossDr., Ste.600

CO 80123.

Littleton,



The parties

will cooperate promptlyto anyquestions you mayhaveconcerning Form

fully in responding that the

394.



Thank you for your consideration. your assistance this matter.Rapid has enjoyed

We greatlyappreciate in

yourcommunity CalNeva

serving and to such

looksforward continuing service.



Sincerelv.





Rapid CommunicationsLLC RapidAcquisitionCo., LLC

ThomasG. Semptimphelter ThomasG. Semptimphelter

President the ManagingMember

of Chief ExecutiveOfhcer









CalNeva,LLC Kris Swentzell

ThomasGelardi RapidCommunications LLC

FCC394



APPLICA'TIONFOR FRANCHISEAUTHORITY

OF

CONSENTTO ASSIGNMENTOR TRANSF'ER CONTROT-

OF CABLE TELEVISIONF'RANCHISE



ALJI'IIORIl'Y I.JSE

FOR I.-RANCHISE ONLY

I. INFORMATION

SECTION GENERAL





DA]'E,:I l/30/08 Number: NV0054

l. CommunityUnit ldentification





Applicationfor: Assignment Franchise

of Transferof Control







3. authority:

Franchising Winnemucca



1. Identifycommunitywherethe system/franchise is the sub.ject the assignment transf'er controlis located:Winnemucca

that of or of





5. I)ate systemwas acquiredor (fbr systemsconstructed the transf'eror/assignor') ciate

by the 2/2t2004

on which service in area:

was orovidedto the first subscriber the franchise



6. Proposed et'f'ective

date of closing of lhe transaction ownershipof

assigningor transf'erring

the systemto transferee/assignee:





Attach as an Exhibit a scheduleof any and all additional infbrmation or materialfiled with this

applicationthat is identified in the franchiseas requiredto be provided to the fianchising authority

when requesting approval

its ofthe type oftransaction ofthis application.

that is the subject









PART I -- TRANSFEROR/ASSIGNOR



m

n d i c a t eh e n a m e , a i

t and

addrcss. t e numberof the transleror/



(if individual,l i s tlastnamefirst)

Legal nameof''l'ransf-eror/Assignor

RaoidCommunications [,LC



Assumed (if

nameusedfor doing business any)

RapidCable



address P.O. Box

Mailing street or

9200 W. CrossDr.. Ste.600

-fclephone

City State Zip Code No. (includeareacodc)

Littleton CO 80r23 303-697-8602







2.(a) Attach as an Exhibit a copy ofthe contractor agreement

control(includingany exhibitsor schedules thereto

thereof). If there is only an oral agreement,

that providesfor the assignment transferof

necessary orderto understand terms

the

in

or



reducethe terms to writingand attach. (Confidentialtrade,

ffi;;

business, pricingor marketinginfbrmation. otherinformation otherwise

or not publiclyavailable,may

be redacted).



(b) Does the contractsubmittedin response (a) aboveembody the full and completeagrcementbetween

to I-x-l v.' No

the transferor/assignor the transferee/assignee?









I ' C C 3 9 4 ( P a g el )

and



I f N o . e x o l a i ni n a n E x h i b i t .



ru I 996

September

PARTII - TRANSFEREE/ASSIGNEE





a tne

th

ndrcate name,matltng adclress,and numberof the

(if

Legalname of Transferee/Assignee individual, last namefirst)

list



LLC

CalNevaBroadband,

(if

Assumedname usedfor doingbusiness any)



Mailingstreetaddressor P.O Box

PO Box 3200

City State Z I PC o d e Telephone No. (includearea code)

Clovis CA 936'13 ( 5 5 9 )2 9 8 - 1 4 6 4



(b) Indrcate name,marlrnq

the address, numberof personto contact, otherthantransferee/ass

and telephone if

Nameof contactperson(listlast namefirst)



GelardiThomas

Firmor companyname (if any)

TEGINC

Mailingstreetaddressor P.O.Box

PO Box 3200

City State ZIPCode TelephoneNo. (includearea code)

Clovis CA 9 3 6 13 559) 298-1464



(c) Attachas an Exhibit name,mailingaddress,

the personwho

numberof each additional

and telephone

if

shouldbe contacted, any Same as above





o Indicate n e address

t

the wnere

wheretne s records be marntarned.

wrll

Streetaddress



City State ZIPCode







2. Indicate an attached

on exhibitany plansto changethe current

termsand condilions serviceand

of

operations the systemas a consequence the transaction whichapproval sought.

of of for is









F ( ' C 1 9 , 1( P a g e2 ) \eptcnllrcr I 996

SECTION TRANSFEREE'S/ASSIGNEE'S

II. LEGALOUALIFICATIONS





1. Transferee/Assignee

rs.



Corporation n

a . J u r i s d i c t i oo f i n c o r p o r a t i o n : d

d . N a m ea n d a d d r e s s f r e g i s t e r ea g e n ti n

o

CA jurisdiction:

b . D a t eo f i n c o r p o r a t i o n TEG lnc.

Nov-08 PO Box 3200

c. For profltor not-for-profit. l

C l o v i sC a . 9 3 6 '3

,





L i m i t e d a r t n e r s h i pa . J u r i s d i c t i oin w h i c hf o r m e d .

P o d

I c N a m ea n d a d d r e s s f r e g i s t e r ea g e n ti n

iurisdiction



b . D a t eo f f o r m a t i o n .









n l a. whose lawsgovernformation:

G e n e r aP a r t n e r s h i p Jurisdiction I b Dateof formation







tr lndividual





tr O t h e r . D e s c r i b ei n a n E x h i b i t







,

2 . L i s tt h e t r a n s f e r e e / a s s i g n e e , ,i f t h e t r a n s f e r e e / a s s i g ni e e o t a n a t u r ap e r s o n e a c ho f i t s o f f i c e r sd i r e c t o r s ,t o c k h o l d e r s

and sn l , s

b e n e f i c i a l l yo l d i n g o r et h a n5 % o f t h e o u t s t a n d i nv o t i n gs h a r e s g e n e r ap a r t n e r sa n d l i m i t e d a r t n e r s o l d i n g n e q u i t y

h m g , l , p h a

pa

i n t e r e s t o f m o r e t h a n 5 % .s e o n l y o n e c o l u m n f o r e a c h i n d i v i d ue n t i t y . t t a c h a d d i t i o n a l g e s i fn e c e s s a r y .R e a d

U or al A (

c a r e f u l l - t h e l e t t e r e dt e m sb e l o wr e f e r t oc o r r e s p o n d i n ig e si n t h e f o l l o w i n t a b l e . )

y i l n g



( a ) N a m e ,r e s i d e n c e ,c c u p a t i o o r p r i n c i p a l u s i n e s sa n d p r i n c i p ap l a c eo f b u s i n e s s .( l f o t h e r t h a n n i n d i v i d u aa,l s os h o w

o n b , l a l

i st ds

n a m e , a d d r e s s a n d c i t i z e n s h np o f r ap e r s o n a u t h o r i z e d t o v o t e t h e v o t i n g s e c u r i t i e s o f t h e a p p l i c a n t t h a tLtih otlh e . )

i atu l

applicant first,officers, next,then directors and,thereafter, remaining stockholders and/orpartners.

(b)Citizenship.

( c ) R e l a t i o n s h t p t h e t r a n s f e r e e / a s s i g n(e e9 . , f f i c e rd i r e c t o re t c . ) .

io e. o , ,

( d ) N u m b e r f s h a r e s r n a t u r e f p a r t n e r s i hip t e r e s t ,

o o o n

(e)Number f votes. o

( f ) P e r c e n t a go f v o t e s .

e



a ) T E GI N C

POBox3200

C

C l o v i s , A9 3 6 1 3



US Corporation

b)



Member

1s;

100

(d)

,

( e,) 1 0 0



(.r .) 100o/o









F C C 3 9 4 ( P a g e3 ) September1996

l f t h e a p p l i c a nits a c o r p o r a t i oo r a l i m i t e d a f t n e r s h i ps t h e t r a n s f e r e e / a s s i g n e em e du n d e r t h e

n p i, for !v"'f No

j

l a w so f , o r d u l yq u a l i f i e t o t r a n s a cb u s i n e s sn ,t h e S t a t eo r o t h e r u r i s d i c t i oin w h i c ht h e s y s t e m

d t i n

operates?



i

l f t h e a n s w e r s N o . e x p l a i nn a n E x h i b i t .

i t

E x h i b iN o





4. H a st h e t r a n s f e r e e / a s s i g nh a d a n y i n t e r e sitn o r i n c o n n e c t i ow i t h a n a p p l i c a n t h i c hh a s b e e n

ee n w Iv"'f No

o

dismissed r denied y anyfranchise uthority?

b a

l f t h e a n s w e ri s Y e s ,d e s c r i b e i r c u m s t a n c en a n E x h i b i t .

c is t

E x h i b iN o .





H a s a n a d v e r s ei n d i n g e e nm a d eo r a n a d v e r s ei n a la c t i o n e e nt a k e nb y a n y c o u r to r

f b f b Iv".f No

administrative bodywith respect the transferee/assignee a civil,criminal administrative

to in or

p r o c e e d i n g ,r o u g h u n d e rt h e p r o v i s i o no f a n y l a w o r r e g u l a t i or e l a t e do t h e f o l l o w i n ga n y

b t s n t :

g

f e l o n y r e v o c a t i o n ,u s p e n s i o o r i n v o l u n t a r ya n s f e o f a n y a u t h o r i z a t i o( i n c l u d i nc a b l e

; s n tr r n

franchises) provide

to video programming services; mass mediarelatedantrtrust unfair or

g

c o m p e t i t i o nr;a u d u l e n tt a t e m e n tts a n o t h e r o v e r n m e n tn i t ;o r e m p l o y m e n ti s c r i m i n a t i o n ?

f s o u d

l f t h e a n s w e r s Y e s ,a t t a c h s a n E x h i b i a f u l ld e s c r i p t i oo f t h e p e r s o n s n d m a t t e ( s )i n v o l v e d ,

i a t n a t

E x h i b iN o

g

i n c l u d i n g n i d e n t i f i c a t i o n a n y c o u r to r a d m i n i s t r a t i v e d ya n d a n y p r o c e e d i n( b y d a t e sa n d f i l e

a of bo

n u m b e r si,f a p p l i c a b l ea,n d t h e d i s p o s i t i oo f s u c hp r o c e e d i n g .

) n



Are there any documents, instruments, contracts understandings

or relating ownership future

to or I v"' f] No

o w n e r s h i pi g h t s i t h r e s p e c t t o n y a t t r i b u t a b li e t e r e sa s d e s c r i b e dn Q u e s t i o n ( i n c l u d i n g ,u t

r w a n t i 2 b

to,

not limited non-voting stockinterests, beneficial stockownership interests, options, warrants,

debentures)?

p

l f Y e s ,p r o v i d e a r t i c u l a ris a n E x h i b i t

n B

S E EE X H I B I T



D o d o c u m e n t s n s t r u m e n t s ,g r e e m e n to r u n d e r s t a n d i n go rt h e p l e d g e f s t o c ko f t h e

i, a s fs o fv"'I No

pr

t r a n s f e r e e / a s s i g n a s , e c u r i t yo r l o a n so r c o n t r a c t u a le r f o r m a n c e , o v t d eh a t . ( a ) v o t i n g i g h t s

ees f p t r

(,

w i l lr e m a i n i t ht h e a p p l i c a n t , v e ni n t h e e v e n to f d e f a u l o n t h e o b l r g a t i o nb ) i n t h e e v e n to f

w e t

d e f a u l tt,h e r ew i l lb e e i t h e r p r i v a t e r p u b l i c a l eo f t h e s t o c k ; n d ( c ) p r i o r o t h e e x e r c i s e f a n y

a o s a t o

r

o w n e r s h i pi g h t s y a p u r c h a s ea t a s a l ed e s c r i b e d ( b ) a n y p r i o rc o n s e n o f t h e F C Ca n d / o r f t h e

r b in t o

p

f r a n c h i s i na u t h o r i t y f r e q u i r e d u r s u a ntto f e d e r a ls t a t eo r l o c a l a w o r p u r s u a n t o t h e t e r m so f

g i, ,

a

t h e f r a n c h i s e g r e e m e n t i l lb e o b t a i n e d ?

w

a

l f N o , a t t a c h s a n E x h i b i a f u l le x p l a n a t i o n .

t t

E x h i b iN o .





SECTION TRANSFEREE'S/ASSIGNEE'S

III. OUALIFICATIONS

FINANCIAL

The transferee/assignee

certifles

that it has sufficient liquidassetson hand or available

net from f v". f] No

committed resources consummate transaction

to the for

and ooerate facilities three months.

the

A t t a c ha s a n E x h i b itth e m o s tr e c e n f i n a n c r a lt a t e m e n t s ,r e p a r e dn a c c o r d a n cw i t hg e n e r a l l y

t s p i e t

E x h i b iN o

a c c e p t e d c c o u n t i n p r i n c i p a l sn c l u d i n a b a l a n c e h e e ta n d i n c o m e t a t e m e nfto r a t l e a s to n e f u l l

a g i, g s s c

y e a r ,f o r t h e t r a n s f e r e e / a s s i g no re a r e n t n t i t y h a t h a s b e e np r e p a r e dn t h e o r d i n a r y o u r s e f

ep e t i c o

.

b u s i n e s si,f a n y s u c hf i n a n c i as t a t e m e n ta r e r o u t i n e l p r e p a r e d S u c hs t a t e m e n t sf, n o t o t h e r w i s e

l s y i

p u b l i c l y v a i l a b l e , a y b e m a r k e d O N F I D E N T I A L d w i l lb e m a i n t a i n ea s c o n f i d e n t i a ly t h e

a m C an d b

p e

f r a n c h i s e u t h o r i t a n d i t s a g e n t s o t h e e x t e n t e r m i s s i b lu n d e rl o c a ll a w .

a y t



S E C T I O N I V . T R A N S F E R E E ' S / A S S I G N E E ' S E C H N I C A LQ U A L I F I C A T I O N S

T

Set forthin an Exhibita narrative accountof the transferee's/assignee's technical qualifications, experience t

E x h i b iN o .

and expertise regarding cabletelevision systems, including, not limited summaryinformation

but to, about D

e p

a p p r o p r i a tm a n a g e m e n te r s o n n e l a tw i l l b e i n v o l v e dn t h e s y s t e m ' s a n a g e m e n tn d o p e r a t i o n sT h e

th i m a .

ea

t r a n s f e r e e / a s s i g nm e y ,b u t n e e dn o t ,l i s ta r e p r e s e n t a t i v e m p l e f c a b l es y s t e m s u r r e n t l o r f o r m e r l y

sa o c y

o w n e do r o p e r a t e d .







FCC 194 (l'age 4) SeplemberI 996

SECTIONV - CERT]FICAT]ONS



Part | - Transferor/Assigrror



All the statements and

madein the application attached exhibits considered

are materialrepresentations, all the Exhibits

and

arc a materialpan hereoland are incorporated

herein if set out in tull in the application.

as





iignelurc

I CERTIFY in

that the staterncnts this application true,

are

completeand correct the bestof my knowledge belietand

to and

are madein goodfaith.

lsle

WILLFUL FALSE STATEMENTS MADEON THISFORMARE

PUNISHABLE FINEAND/OR

BY IMPRISONMENT. CODE,

U.S. '^^ffi

1

T I T L E 8 ,S E C T I O N 0 0 1 .

1 nphellzn

,wa I fr-,^p/t'

s

Checkappropriate

classilication;

fl otfrcor

corporate

Individuat Partner

General "(TJo;il;ffi' other

EPrain:

I I M lJ



Part ll - Transferee/,qssignee



All the statementsmadein the application attached

and Exhibits considered

are materialrepre$entations, all the Exhibits

and

are a materialparl hereof

and are incorporated

herein if set out in futlin the application,

as



The fi ansfereeJassi certillesthat he/she:

gnee



(a) Has a current

copyof the FCC'sRulesgoverning

cabletelevision

systems.



(b) Hasa cuffentcopyof the franchise

that is the subject this application, of any applicable

of and statelawsor local

ordinances related

and rogulations.



(c) Will use its besteffortsto complywith the termsof the franchise applicsble

and statelawsor localordinances related

and

regulations, to effectchanges, promptly practicahle, the operation

and as as in system,if any changes necessarv cure

afe to

any violations thereof defaults

or thereunder presently effector ongoing.

in







I CERTIFY the statements this application truo,

that in aro

complctcand correct ths [ss1 of my knowledge beliefand

to and

are madein goodfaith.



WILLFUL FALSE STATEMENTS MADEON THISFORMARH 1

November 1, 2008

P U N I S H A B L E F I N EA N D / O RM P R ] S O N M E NU . S .C O D E )rinl lull ngme

BY I T

TITLE18,SECTTON 100't- E.

Thomas Gelardi

Check appropriato classification:





I

Individuar

I

Partner

General

E cf:fl*911f'

(rndicare

Till€) l-l

l_J

orhsr

Erprain:









FCC301(PeEo

5) ,|996

September

Exhibit A



l. AssetPurchase AgreementdatedNovember 2008between

4, RapidCommunications

LLC and RapidAcquisitionCo., LLC and CalNevaBroadband, Lt,C.. attached.Conlldential

trade,business,

pricingand/ormarketing otherinformation otherwise

or not publicly available

and Exhibitsand Schedules the AssetPurchase

to Agreement necessary orderto

not in

understand termsof this transaction

the havebeenomitted,as providedin Section2(a) of this

FCC Form 394 andpursuant IrCC rulesand regulations.

to

ASSETPURCI{ASEAGREEMENT



This AssetPurchase

Agreement (the "Agreement") madeand entered

is into as of November_,

2008,by and amongRapidCommunications L,LC.a Coloradolimited liability companyand

RapidAcquisitionCo., LLC, a Delaware limited liability company(eachand together, "Seller")

and calNeva Broadband,LLC, a california limited liability company("Buyer").

Background



Sellerowns and operates cabletelevision

the systemsservingthe areasdescribedon

Schedule attached

A hereto(the "Systems").Sellerdesires sell and transfer Buyer,and

to to

Buyer desires acquireand acceptfrom Seller.substantially of the tangibleand intangible

to all

assets the Systems.

of



Aqreements



ln consideration the mutualcovenants promises forth herein.Buyerand Seller

of and set

agreeas follows:



l. Purchase Sale.

and



l.l of

Covenant Purchase Sale:Assets.At Closing,subject Section1.8 Seller

and to

shallconvey,assign. and transfer Buyer,and Buyer shallpurchase

to from Sellerall of Seller's

right, title and interest the tangibleand intangible

in assets the Systems

of (fbr eachsystem.the

"Assets"), freeand clearof liensand encumbrances otherthan(i) liens for taxesnot yet due and

payable and (ii) in the caseof real property, matters

all that areof record,as follows:



(a) All electronic

devices,trunk and distributioncoaxialand opticalfiber

cable,amplifiers,line extenders,power supplies,conduit,vaultsand pedestals,grounding and

pole hardware,subscriber's devicesand any other distributionequipment,headend hardware,

vehiclesand other tangiblepersonalproperty,including customaryinventory,relating to the

Systems;



(b) Subject Section1.7hereof, franchises

to all ("Franchises"), authorizations.

permitsand similarrightsobtained from any governmental

authorityrelatingto the Systems

which areset forth on Schedule .l (b),

I



(c) Leases real and personal

of pole attachment

property. agreements,

crossingagreements,

multipledwelling unit access bulk billing agreements

agreements, and

othercontracts agreements

and relatingto the Systems;



(d) All rightsand interests realproperty,

in includingleasehold

interests,

fee

interestsand other rights and interestsrelating to the Systems;

and



(e) All intangible associated

assets with the Systems,

includingsubscriber

lists,accounts

receivable goodwill.

and



1.2 ExcludedAssets.Notwithstanding

Sectionl.l. the Assetsshallnot includeany

following(the"Excluded

o1'the (i)

Assets"): cashandcash-equivalents; any andall insurance

(ii)





1073

5-0001

/I_EGAL t

I 471151 1

policies,bonds,letters creditand othersimilar itemsand any rightsand claimsthereunder;

of

(iii) any and all claims,rightsand interests and to any refundsfor federal.

in stateor local

fianchise, incomeor othertaxesor feesof any naturewhatsoever any periodprior to the date

for

of Closing;(iv) tax, corporate and f-rnancial (v)

documents records: all rightsaccruingto

and

Sellerunderthis Agreement and the transactions contemplated hereinl(vi) all progranrming

agreements, otherthanretransmission consent (vii)

agreements; all pole agreements exceptthose

usedexclusively connection

in with the Systems; (viii) all claimsagainst third partieswith

to

respect the Systems the periodon or prior to Closing;(ix) master

for construction and

installationagreements, intercompany

(x) receivables; (xi) all items of tangiblepersonalproperty

consumed disposed in the ordinary courseof business

or of betweenthe dateof this Agreement

and Closing, (xii) contracts(including thosefor management consultingservices)

and with any

affiliatesof Seller;(xiii) employee benefitplans;(xiv) all rights,claimsand causes actionof

relatingto any Excluded Assetor any liability that is not an AssumedLiability; and (xv) the

assets described attached

on Schedule 1.2(a).



1.3 Assumed Liabilities.Effective of Closing,

as Buyerassumes shallpay.

and

and

discharge, performwhenduethe following(the"Assumed Liabilities"):(i) obligationsand

liabilitieswith respect the periodafterthe Adjustment

to Time (definedbelow) arisingunderany

of the Franchises all contracts,

and governmental authorizations licenses any other

and and

Assets,whetheror not consentto transfersuchassets beenobtainedfrom any third party, (ii)

has

obligations and liabilitiesarisingout of Buyer'sownership or in any way relatedto the Assets

of

or operationof the Systems after the AdjustmentTime, (iii) obligationsand liabilities that arise

out of eventsfirst occurringor conditionsfirst existingafter the AdjustmentTime, (iv)

obligations and liabilitiesfor subscriber prepayments, deposits and creditsof the Systems of

as

the Adjustment Time; and (v) obligations and liabilitiesrelated mattersfor which the Purchase

to

Price(asdefinedbelow) is reduced pursuant Section1.6of this Agreement.All other

to

liabilities,includingwithout limitation,obligations and liabilitiesnot otherwise assumed

hereunder arisingfiom the ownership operation the Systems the Assets

and or of or during the

periodon or befbrethe Adjustment Time (the "Excluded Liabilities")shallremainthe

obligations Seller. Buyer shalldefend,indemnifyand hold harmless

of Sellerfrom and against

any and all losses, costs,liabilities,expenses (includingreasonable attorneys'fees costs),

and

claimsand actions arisingout of or relatingto the Assumed Liabilities.



1.4 Earnest Money Deposit. Concurrent with execution this Agreement,

of Buyer

shalldeliverto Sellerthe sum of f (the "EarnestMoney Deposit"),by wire transfer

of

immediately availablefundsto an account designated Seller. At Closing.Sellershallbe

by

entitledto retainthe EarnestMoney Deposit,which shallbe credited the

against ClosingCash

Payment.If this Agreement terminated Buyerwithout Closingoccurringand such

is by

termination the resultof Seller's

is failureto closein accordance

with the termsof this

Agreement, otherthanas a resultof a breachof this Agreement Buyer,the Earnest

by Money

Depositshallbe returned Buyer. In all otherinstances, this Agreement terminated

to if is

without Closingoccurring, Earnest

the Money Depositshallbe retained Seller.

by



1.5 Purchase

Price. As consideration the Assets,

for Buyer shallpay to Sellerthe

following (the "Purchase

Price"),adjusted providedin SectionL6:

as









10735"000 I r17135 1

I 1t-l-lcAt. I,l

(a) Buyershallpayto Seller sumof I

At Closing, the (the"Closing

Cash Pa)rment");



(b) At Closing,Buyer shalldeliverto Sellera securedpromissory note in the

form attachedheretoas Exhibit 1.5(b)-1, the principalamountof I

in adjusted the

by

full amountof the adjustment the Purchase

to Pricerequired SectionI .6 (the "Promissor),

by

Ne1e"),and a SecurityAgreement the form attached

in heretoas Exhibit 1.5(b)-2(the "Security

Agreement"); and



(c) At Closing,Buyer shallissueto Selleror its designee in

Warrants the form

attached Exhibit 1.5(.c) units of membership

as for in

interest Buyercomprising, of Closing,

as

! percent ottto irru.d and outstanding

memberihipinterests oiBuy.. on a futty-Oiluted

baiis

(the "Warrants").



1.6 to

Adjustments Purchase

Price.



(a) The Purchase Priceshallbe subject adjustment, of I l:59 pm on the

to as

dateof Closing(the "Adjustment Time"), to reflect,amongotherthings,in accordance with

generallyaccepted accountingprinciples("GA$E"), the principle that all revenues,refunds,

costs,expenses liabilities, attributableto the Systems

and prior to the AdjustmentTime are for

the accountof Sellerand all revenues,

refunds,costs,expenses liabilities (otherthan with

and

respect ExcludedAssets)attributableto the operationof the Systems or after the

to on

AdjustmentTime are for the accountof Buyer. The adiustments the Purchase

to Price shall

consistof:



(i) an increase the Purchase

in Priceby the sum of: (A) all prepaid

itemsrelatingto the Systems, p1s

which shallbe allocated ratabetween Sellerand Buyeras of

the Adjustment Time on the basisof the periodto which the respective prepayment (B)

relates;

all depositsrelatingto the Systemsand held by third partiesas securityfor performance under

contractsincludedin the Assets; (as

and (C) the AccountsReceivable definedbelow);and



(ii) a decrease the Purchase

in Price by the sum of: (A) all subscriber

prepayments, credit balances and depositsrelatingto the Systems; and (B) all accruedand

unpaidexpenses relatingto the Systems,which shallbe allocated p1p.rctabetween Sellerand

Buyer as of the Adjustment Time on the basisof the periodto which the respective expense

relates.



(b) For purposes this Agreement,

of "AccountsReceivable" meansthe sum of

(i) - of the faceamountof all subscriber accounts receivable the

of

Systems that are outstanding of the dateof Closing, no part of which (other than an amountof

as

$10.00or less)is morethan sixty dayspastdue (with an account being "pastdue," for purposes

of this Agreement,one day after the first day of the period to which the applicablebilling

relates).



(c) At leastthreebusiness daysprior to Closing.Sellershallprepare and

deliverto Buyera report(the "Preliminaryr Report"),showingSeller's calculation the of

adjustments required this Section

by 1.6. The Preliminary Report shallbe the basis whichthe

on

c aon

a d j u s t m e n t s c o n t e m p l a t e d b y t h i s S le 6 t i r e c a l c u l a t e d f o r p u r p o s e s o l ' C l oWi in g . n g 0

. s thi





35

4 0 7 3 5 - 0 0 0/ L E G A I . I ; 1 7 . : 1 I 4 1

I

daysafter Closing, Sellershall deliver to Buyer a final reportof the adjustments contemplated by

this SectionL6 (the "Final Report"). Within five business daysafterthe dateof Seller's

delivery

of the Final Report,if the net amountof the adjustments the Purchase

to Price statedtherein

differsfrom the net amountof the suchadjustments stated the PreliminaryReport,Seller

as in

and Buyer shallamendthe Note effbctiveas of the dateof Closing.to increase decrease

or the

principleamountof the Note by suchamount.



|.7 Franchises.



(a) Transferof Franchises.NotwithstandingSection I .1, no transferfrom

(a

Sellerto Buyer of any Franchise "RetainedFranchise") transferof which requiresthe

the

consentor approvalof any franchisingauthority(eachan "LFA Approval"), or any relatedAsset

the transferof which in the absence an LFA Approval would constitutea violation of a

of

Retained Franchise (with respect any Franchise,

to "Related RetainedAssets"), shallbe effective

until the earlierof (i) the dateon which the relevantfranchisingauthorityhas grantedits t,FA

Approval.(ii) the dateon which Buyerceases operation tl-re

of System operated pursuant that

to

Retained Franchise; (iii) the datethatis 120daysfbllowingthedateof Closing(in either

and

case, with respect eachRetained

to Franchise its Related

and Retained if

Assets, any,the

"TransferDate"). Each RetainedFranchise and RelatedRetainedAssets,if any, automatically

shall transferon its TransferDate,without further action on the part of Selleror Buyer.

Followingdeliveryof the Schedules accordance

in with Section3.1 below,Buyer shallexercise

its bestefforts to obtain all necessary LFA Approvals,and Sellershall reasonably cooperatewith

Buyer's efforts to include,but not be limited to, providing the necessaryFCC Form(s) 394

within five business daysof deliveryof the Schedules accordance

in with Section3.1 below.



(b) Management Asreement.At Closing,Sellerand Buyer shallexecute and

delivera Management Agreement the forrn attached

in heretoas Exhibit 1.7(the "Management

Agreement"), pursuant which Buyer shallmanage applicable

to the Retained Franchise and

Related Retained Assets subject the following: (l) Buyershallbearall expenses

to relatingto

suchcabletelevisionfranchise the areaserved suchcabletelevisionfranchise

and by and the

operationthereof,and shall receivethe grossrevenues from suchareaas its management fee; and

(2) suchmanagement shall continuewith respectto any RetainedFranchise and Related

RetainedAssetsuntil the TransferDate.



1.8 Closing. The closingof the transactions contemplated hereby(the "Closinq")

shalltakeplaceon the earliest practicabledateagreed upon by the parties(the "ClosinqDate"),

but in no eventlaterthan-. The ClosingDatemay be extended only uponthe

writtenagreement both Buyerand Seller. At Closing,(i) Buyer shallpay the ClosingCash

of

Payment and deliverexecuted copiesof the Promissory Note.the SecurityAgreement and the

(ii)

Warrants: Sellershallexecute and deliverto Buyerbills of salefor the Assetsand other

instruments reasonably necessary conveythe Assets one or the other Buyer,as directed

to to by

Buyer in form reasonably acceptable the parties;

to (iii) Buyershallexecute and deliverto Seller

an assumption agreement the AssumedLiabilities and other instruments

for reasonably necessary

to conveythe Assets and the Assumed Liabilitiesto Buyer,all in form reasonably acceptableto

the parties;and (iv) Sellerand Buyershallexecute and deliverthe Management Agreement.









I /l,E(iAt_47:135 .l

"10735-000 | 1.1

2. Representations Warranties.

and



(a) Buyer'sRepresentations Warranties. Buyer represents warrantsto

and and

Seller,as of the dateof this Agreement

and as of Closing.as follows:



(i) Orsanizationof Bulrer. Buyer is a limited liability companyduly

organized, validly existing,and in good standingunderthe laws of the Stateof California and

hasall requisitepower and authorityto own and leasethe properliesand assets currentlyowns

it

and leases to conductits activitiesas suchactivities currentlyconducted.Buyer is duly

and are

qualifiedto do business a foreigncorporation is in good standing alljurisdictionsin

as and in

which the ownership leasing the properties assets

or of and by

ownedor leased it or the natureof

its activitiesmakessuchqualification necessary.



(ii) Authority. Buyerhasall requisitepowerand authorityto execute,

deliver, and perform this Agreementand consummate transactions

the contemplated this

by

Agreement. The execution,delivery, and performance this Agreementand the consummation

of

of the transactionscontemplated herebyby Buyer have beenduly and validly authorized all

by

necessary action on the part of Buyer. This Agreementhas beenduly and validly executedand

by

delivered Buyer,and is the valid and bindingobligationof Buyer,enforceable Buyer

against

in accordance with its terms.



(iii) No Conf'lict;Required Consentq. as

lrxcept described on

Schedule 2(a)(iii), execution,

the and performance Buyerol'thisAgreemcnt not

delivery, bv do

and will not: (a) conflictwith or violateany provisionof the articles organization operating

of or

agreement Buyer;(b) violateany provisionof any law or regulation

of applicable Buyer;(c)

to

(without regardto requirements notice,lapseof time, or electionsof other personsor entities,

of

or any combinationthereof),conflict with, violate, result in a breachof, constitutea default

under,accelerate, permit the acceleration the performance

or of requiredby, any contractor

encumbrance which Buyer is a party or by which Buyer or the assets propertiesowned or

to or

leasedby it are bound or affected;or (d) requireany consent, approval,or authorization or

of,

filing of any certificate,notice,application,report,or otherdocument with, any governmental

authorityor otherperson entity.

or



(iv) Acknowledgement SellerRepresentations Warranties.

of and

Exceptas qualifiedby the representations warranties Sellerset lbrth in subparagraph2(b)

and of

below,BUYER WI[.L ACCEPTTHE ASSETS"AS IS" AND "WHERE IS."



(b) Seller'sRepresentations Warranties. Sellerrepresents warrantsto

and and

Buyer, as of the dateof this Agreementand as of Closing,as follows:



(i) Organization Oualification Seller. EachSelleris a limited

and of

liability companyduly organized, validly existing,and in goodstandingunderthe lawsof the

Stateof Colorado and the Stateof Delaware, applicable. hasall requisite

as and powerand

authorityto own and lease properties assets currentlyowns and leases to conducl

the and it and

its activities suchactivities currentlyconducted.EachSelleris duly qualifiedto do

as are

business a foreignlimitedliabilitycompany

as and is in goodslanding alljurisdictions

in in









4073 l

5-000n.,EG 17435 4.4

ALt |

which the ownershipor leasingof the propertiesand assets

owned or leasedby it or the natureof

its activitiesmakessuchqualificationnecessary.



(ii) Authority. EachSellerhasall requisitepowerand authorityto

execute,deliver,and performthis Agreement and consummate transactions

the contemplated by

this Agreement.The execution, delivery,and performance this Agreement

of and the

consunlmation the transactions

of contemplated this Agreement the part of eachSeller

by on

havebeenduly and validly authorized all necessary

by actionon the parl of'eachSeller. fhis

Agreement beenduly and validly executed delivered eachSeller,and is the valid and

has and by

bindingobligationof eachSeller,enforceableagainsteachSellerin accordance with its terms.



(iii) No Conflictl Required Consents. Exceptas described on

Schedule 2(b)(iii), the execution,delivery, and performance Sellerof this Agreementdo not

by

and will not: (a) conflict with or violate any provision of the articlesof organization operating

or

agreement eitherSeller;(b) violateany provisionof any law or regulation

of applicable Sellerl

to

(c) (withoutregard requirements notice,lapseof time, or elections otherpersons

to of of or

entities" any combination

or thereof),

conflictwith, violate,resultin a breachof-,constitute a

defaultunder,accelerate, permitthe acceleration the performance

or of requiredby, any contract

or encumbrance which Selleris a party or by which Selleror the assets properties

to or ownedor

leased it areboundor afiected;(d) resultin the creation impositionof any encumbrance

by or

against uponany of the Assets; (e) requireany consent,

or or approvalor authorization or

of,

filing of any certificate,notice,application,report,or other documentwith, any governmental

authorityor other personor entity.



(iv) Title to Assets. Sellerhasgoodand marketable title to (or, in the

caseof Assets that are leased,valid leasehold interests the Assets.The Assets free and

in) are

clearof all encumbrances any kind or nature,

of (a) (l) liensfor taxes,assessments

except: and

governmental charges yet due and payable: zoninglawsand ordinances similar legal

not (2) and

(3)

requirements, rightsreserved any governmental

to the

authorityto regulate at-tected property:

and (4) as to real properly,any easements, rights-o1'-way,servitudes, permits,restrictions and

minor imperfections irregularities title which arereflected the public records;

or in in (b)

restrictionsstatedin any franchises, permits,licenses and similar rights issuedby a governmental

authority;and (c) encumbrances disclosed Schedule

on 2(bXiv),which will be removedand

released or prior to Closing

at



(v) No Litigation. Exceptas described Schedule

on 2(bXv),thereis

no litigation,action,suit or proceeding pendingor, to Seller's

knowledge,

threatened,

involving

any of the Systems the Assets.

or



(vi) Investment Representations. Note and the Warrants. any

The and

unitsof membership interestissuedupon exercise the Warrants

of ("WarrantUnits"),arebeing

acquired Sellerin good faith solelyfor its own personal

by account, investment

for purposes

only, and arenot beingpurchased with a view to, or for, the resale, subdivision

distribution, or

fractionalizationthereof. Sellerunderstands the saleand distributionof the Note, Warrants

that

and WarrantUnits havenot beenregistered underthe Securities of 1933(the "Securities

Act

Act") or any statesecuritieslaws, and may not be sold, offered for sale,transferred, pledged,

hypothecated otherwise

or disposed exceptin compliance

of with the Securities or any state

Act





1 0 7 3 5 - 0 0I0t . t r ( i A t . 1 7 , j i I l , l

/ I 1

securitieslaws,and in the caseof the WarrantUnits the restrictions Buyers'operating

in

agreements. Sellerunderstands Buyer hasno obligationto cause Note, the Warrants

that the or

the WarrantUnits to be registered Act

underthe Securities or any statesecurities laws,to comply

with any exemptionunderthe Securities Act or any statesecuritieslaws or otherwiseto permit

any suchsecurities be sold by Seller.

to



(vii) No FurtherRepresentations Warranties.Except as otherwise

and

expresslyset forth in this Section2(b), (a) Sellerherebyexpresslydisclaimsany and all

warranties representations respect the Systems the Assets,

or with to and and (b) SELLER

MAKES NO WARRANTY OR REPRESENTA'fIONWHATSOEVER.EITF{ERORAL OR

WRITTEN,EXPRESS IMPLIED, WITH RESPECT TFIEASSEl'S,INCT,UDING

OR TO BTJ'I'

NOT LIMITED TO ANY WARRANTY OF MERCHANI'ABII-ITY OR THE CONDITIONOF

THE ASSETSOR THE FITNESSOR SUITABILITY THEREOFFOR ANY PAR'TICULAR

OR GENERAL USE OR PURPOSE.



3. Additional Agt:eements.



3.1 Deliveryof Schedules. Within l0 daysfollowing the dateof this Agreement,

Sellershalldeliverto Buyer the Schedulescalledfor by this Agreement and suchSchedulesshall

be deemed be a part of this Agreement thoughthey had beendelivered the Selleron the

to as to

dateof this Agreement.Not lessthan five daysprior to ClosingSellershalldeliverto Buyer

revisedcopiesof the Schedules this Agreement

to which shallbe updated showany changes

to

occurringbetween dateof this Agreement

the and the dateof deliveryof suchrevisedSchedules.



3.2 Third PartyContractAssistance. With respect the programming

to and

retransmissionconsentagreements are includedin the ExcludedAssets,after delivery of the

that

in

Schedules accordance with Section3.1. Sellershalldelivera noticeto eachof the

counterparties suchagreements

to informing them of the transactionscontemplated this

by

Agreementand providing Buyer'scontactinformation.



4. lndemnification.



4.1 Indemnif'rcation Seller.FromandafterClosing.

b)z Sellershallindemnify and

hold harmlessBuyer,its affiliates.

offlcersand directors, agents" representatives.

employees. and

and any Person claimingby or throughany of them.as the casemay be. from and against

any

andall losses,

costs expenses

or ("Losses")arising of or resulting

out fiom:



(a) any representations warranties

and madeby Sellerin this Agreement not

being true and accuratewhen madeor when requiredby this Agreementto be true and accurate;



(b) any failure by Seller to perform any of its covenants,

agreements,

or

obligationsin this Agreement;and



(c) all liabilities

andobligations that

o1'seller arenot Assumed

Liabilities.



Notwithstanding foregoing, total aggregate

the the amountof the liability of the Sellerlbr claims

madepursuant this Section shallbe limited1othe sumo1'the

to 4.1 ClosingCashPayment and







1073s-000I /t.EG ALI 47135 | 1 4

the amountof principal actually receivedby the Sellerunderthe PromissoryNote (the "Losses

cap").

4.2 Indemnification Buyer. From and afterClosing,Buyer shallindemnifyand

by

hold harmless Seller,its affiliates,officersand directors, and representatives, any

agents, and

Person claimingby or throughany of them,as the casemay be, fiom and against any and all

Losses arisingout of or resultingfrom:



(a) any representations warranties

and madeby Buyer in this Agreementnot

being true and accuratewhen madeor when requiredby this Agreementto be true and accurate;



(b) any failure by Buyer to perform any of its covenants,

agreements,

or

in

obligations this Agreement; or



(c) the AssumedLiabilities.



Notwithstanding foregoing, total aggregate

the the amountof the liability of the Buyer for claims

madepursuant this Section shallbe limited to the Losses

to 4.2 Cap.



4.3 Procedure Indemnified

for Third PartyClaim. Promptlyafterreceiptby a party

entitledto indemnificationhereunder (the "lndemnitee")of written notice of the assertion the

or

commencement any litigation or proceeding

of to

with respect any matter referredto in

4.1

Sections or 4.2,the Indemniteeshall give written notice thereofto the party from whom

indemnificationis soughtpursuanthereto(the "lndemnitor") and thereaftershall keepthe

Indemnitorreasonably informed with respectthereto;provided,however,that failure of the

Indemniteeto give the Indemnitornotice as providedhereinshall not relieve the Indemnitorof

its obligationshereunder exceptto the extentthat the lndemnitoris prejudicedby such failure.

In caseany litigationor proceeding shallbe broughtagainst any lndernnitee. Indemnitor

the shall

be entitledto participate suchlitigationor proceeding

in and,at its option,to assume defense

the

thereofwith counsel satisfactory the Indemnitee, the Indemnitor's

to at soleexpense.If the

Indemnitor the

shallassume defense any litigationor proceeding, shallnot settlethe

of it

litigationor proceeding unless settlement

the shallincludeas an unconditional term thereofthe

giving by the claimantor the plaintiff of a release the Indemnitee,

of to

satisfactory the

Indemnitee, from all liability with respect suchlitigationor proceeding.

to



4.4 Survival. The representations warranties Buyer and Sellerin this

and of

Agreementshall survive Closing for a period of six months(the "Survival Period").Neither

Sellernor Buyer shallhaveany liability underparagraphs 4.1(a)or 4.2(a),respectively,unlessa

claim for Losses which indemnification soughtthereunder assefted the party seeking

for is is by

indemnificationthereunder writtennoticeto the party from whom indemnification sought

by is

duringthe SurvivalPeriod.



5. Miscellaneous.



5.1 Brokerase. Eachparty shall indemnify and hold the other harmlessfrom and

against any and all losses,

costs,liabilities,expenses damages

or arisingfrom any employment

by it of, or services rendered it by, any finder, broker,agency,or other intermediary,in

to







1t_tic^t_

40735-0001 t'1

147435 4

connectionwith the transactions hereby, any allegation any suchemployment

contemplated or of

or services.



5.2 EntireAqreement; Amendments.This Agreement embodies entireagreement

the

betweenthe partiesheretowith respectto the subjectmatterhereofand supersedes prior

all

and

agreements understandings, or written, with respectthereto. This Agreementmay not

oral

be modified orally, but only by an agreement writing signedby the party or partiesagainst

in

whom any waiver, change,amendment, modification,or dischargemay be soughtto be enforced.



5.3 Binding Effect:Benefits. This Agreement shallinureto the benefitof and will be

bindinguponthe partiesheretoand their respective successors,

heirs,legalrepresentatives, and

permittedassigns.NeitherBuyer nor Sellershallassign this Agreement delegate of its

or any

dutieshereunder any otherperson

to without the prior writtenconsent the other"

of



5.4 GoverningLaw. The validity, performance, enforcement this agreement

and of

and all transactiondocuments, unlessexpresslyprovidedto the contrary,shall be governedby

the laws of the stateof Colorado,without giving effect to the principlesof conflicts of law of

suchstate.



5.5 Attorneys'Fees. If any litigationor disputebetween Sellerand Buyer with

to

respect this Agreementor the transaction contemplated herebyshall be resolvedor adjudicated

by a judgmentof any court,the party prevailingundersuchjudgmentshallbe entitled,as part of

suchjudgment,to recoverfiom the otherparty its reasonable attorneys'fees costsand

and

of

expenses litigation.



5.6 Transfer use,transf'er, similartaxesarisingfrom or payable

Taxes. All sales. and

by reasonof the transactions

contemplated this Agreementshall be the liability of and for the

by

accountof Buyer, and Buyer shall indemnify and hold Sellerharmlessfrom and againstthe

same.



5.7 Notices. All notices,requests,demands, applications,services process,

of and

other communications which are requiredto be or may be given under this Agreementshall be in

writing and shallbe deemed havebeenduly given if sentby telecopy facsimile

to or

transmission, by

delivered recognized overnightcourier,or mailed.certifledfirst classmail,

postage prepaid,returnreceiptrequested, the parties

to heretoat the following addresses:



T o t h eS e l l e r :



c/o Rapid Communications LLC

9200 W. CrossDrive, Suite600

Littleton,Colorado80123

Attention: ThomasG. Semptimphelter

Facsimile: 303.697.2217









l/I.EGALr17435

40735-000 I I 4,1

with copies(which shall not constitutenotice):



PerkinsCoie LLP

1899Wynkoop Street

Suite700

Denver,Colorado 80202

Attention: BruceD. Stocks

Facsimile: 303.291.2400



To Buyer:



CalNeva Broadband. LLC

P.O. Box 3200

C l o vi s, A 9 3 613

C

Attention: Thomas Gelardi

E.

Facsimile: (559)325-6095







Copy to: 7145N. Traverse



Clovis,Ca.93619



or to suchother address any party shall have furnishedto the other by notice given in

as

accordance with this Section. Suchnotice shall be effbctive,(i) if deliveredin person,by courier

or by facsimile transmission, uponactualreceiptby the addressee, (ii) if mailed,uponthe

or

earlierof five daysafter depositin the mail and the dateof delivery as shown by the return

receipt therefor.



5.8 Jointand Several

Obligations.The obligations Sellerin this Agreement the

of are

joint and several

obligations RapidCommunication

of LLC and RapidAcquisitionCo., LLC.



ISignat ure Page Fol lowsl









l0

40735-000r

/t,F.cAt.17-135 4

1 11