ZAMBA CORP
EX-10.69
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<TYPE>EX-10.69
<SEQUENCE>11
<FILENAME>j8805_ex10d69.htm
<DESCRIPTION>EX-10.69
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit

10.69</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SETTLEMENT

AGREEMENT AND RELEASE</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT is entered

into as of March 11, 2003 between <b><font style="font-weight:bold;">Key

Equipment Finance (&#147;Key&#148;),</font></b> a division of Key Corp. Capital, Inc., a

Michigan Corporation with its principal place of business at 127 Public Square,

Cleveland, Ohio, and the successor-in-interest to Leasetec Corp., and <b><font style="font-weight:bold;">Zamba Corporation</font></b> (<b><font style="font-weight:bold;">&#147;Zamba&#148;</font></b>), a Minnesota corporation with

principal offices at 3033 Excelsior Boulevard, Suite 200, Minneapolis,

Minnesota.&#160; Key is the Plaintiff

incorrectly identified as Key Equipment Finance International, Inc. in the

pending Hennepin County action, <u>Key Equipment Finance International, Inc. v.

Zamba Corporation</u>, Court File: CT 02-017418.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Key and Zamba have entered

into a long-term Equipment Leasing Contract on October&nbsp;11, 2000 consisting

of a Master Equipment Lease Agreement and three Equipment Schedules

(&#147;Lease&#148;).&#160; A dispute has arisen between

Zamba and Key as to the remaining obligations under the Lease.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW, THEREFORE, KEY AND ZAMBA AGREE AS FOLLOWS:</font></b></p>



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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Promptly following receipt of this

Settlement and Release Agreement signed by Key, Zamba will sign and forward to

Key a Promissory Note and a Verified Confession of Judgment in the form of such

documents attached to this Settlement and Release Agreement as Exhibits A and

B, respectively.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In consideration of the

execution and delivery of the Promissory Note and the Verified Confession of

Judgment and payment as described therein, Key, on behalf of itself and its

parent, affiliated and subsidiary companies, does hereby release and forever

discharge Zamba, its parent, affiliated and subsidiary companies and their

respective directors, officers, employees, insurers, successors and assigns,

from any and all past and</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>





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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">future claims, liability, losses, costs and damages, known and unknown,

arising out of or in any way related to the Lease, including but not limited to

lease payments, claims related to the equipment that was leased or any other

claims.&#160; This release includes but is

not limited to any liability in contract or in tort for negligence, strict

liability, breach of contract, breach of warranty or other product liability

and any liability for punitive damages.&#160;

In consideration of this release, Zamba, on behalf of itself and its

parent, affiliated and subsidiary companies, does hereby release and forever

discharge Key, its parent, affiliated and subsidiary companies and their

respect directors, officers, employees, insurers, successors and assigns, from

any and all past and future claims, liability, losses, costs and damages, known

and unknown, arising out of or in any way relating to the Lease, including but

not limited to lease payments, claims related to the equipment that was leased

or any other claims.&#160; Key and Zamba,

warrant that as of the date of their signature below they are unaware of any

claim that may exist between Key and Zamba and their parents, subsidiaries, and

affiliates, whether or not arising out of or in any way related to the Lease,

except those claims being released herein.&#160;

This release includes but is not limited to any liability in contract or

in tort for negligence, strict liability, breach of contract, breach of

warranty or other product liability for punitive damages.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In

executing this release, the parties intend to, and hereby do, terminate the

Lease.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Settlement Agreement and

Release, including attached exhibits, supersedes all prior agreements,

negotiations or understandings, whether written or oral, between Zamba and

Key.&#160; Neither party has relied on any

promise, agreement, statement or representation not expressed herein. This

Settlement Agreement and Release may be modified only by written agreement

signed by the parties hereto.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Upon execution of this Settlement

Agreement and Release and the corresponding Promissory Note and Verified

Confession of Judgment, the parties authorize</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">their respective counsel to stipulate without

costs, disbursements or attorney&#146;s fees to either side to the dismissal with

prejudice of the pending action in Hennepin County, captioned, <u>Key Equipment

Finance International, Inc. v. Zamba Corporation</u>, Court File: CT 02-017418.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The stipulation of dismissal with

prejudice of the pending action above-referenced shall not impede Key&#146;s ability

to enforce the Verified Confession of Judgment should Zamba not satisfy the

conditions of the Promissory Note.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each party warrants and represents

that the person signing below has authority to enter this contract.&#160; In addition, each party warrants and

represents that it is in full and exclusive possession of any claims to be

waived, and that it has not assigned any of such claims to any third party.&#160; Key further warrants and represents that it

is the successor in interest to the assets and liabilities of Leasetec

Corporation (&#147;Leasetec&#148;) and that Leasetec assigned to Key all of its interests

in the Lease.&#160; Key agrees to indemnify

Zamba, including pay all costs, disbursements, attorneys&#146; fees and judgments,

for any claim brought against Zamba by Leasetec or an assignee of the Lease.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Settlement Agreement and

Release shall be construed and interpreted in accordance with the laws of the

State of Minnesota.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement may be executed

simultaneously in two or more counterparts, each of which will be deemed an

original, but all of which together will constitute one and the same

instrument.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b>, authorized representatives of the parties

have executed this agreement on the date(s) set forth below, to be effective as

of the date first set forth above.</p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="47%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:47.76%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Key

  Equipment Finance</font></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <td width="47%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:47.76%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">March

  13, 2003</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.44%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/

  Sal Boschia</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Manager

  Special Accounts</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="47%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:47.76%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Zamba

  Corp.</font></p>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">March

  17, 2003</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.44%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>

  </td>

  <td width="22%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:22.12%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/

  Michael H. Carrel</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CFO</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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