Document:

Exhibit

10.05

 

SETTLEMENT AGREEMENT AND

RELEASE

 

This Settlement Agreement and Release (“Agreement”) is entered into as of

September    , 2002, by and between Fidelity Leasing, a division

of EAB Leasing Corp., successor-in-interest to Herman Miller Capital  (“Fidelity”), ZAMBA Corporation d/b/a

Zamba Solutions (“Zamba”), and Michael H. Carrel (“Guarantor”).

 

F  A

C  T  S

 

A.            On

or about November 6, 2000, January 12, 2001, March 19, 2001, May 22, 2001, May

23, 2001, and July 27, 2001, Fidelity and Zamba entered into certain Equipment

Lease Agreements (the “Leases”) for certain office furniture identified

in documents entitled “Schedule A” to such Leases and attached to each Lease

(the “Equipment”).

 

B.            Fidelity alleges that the January 12, 2001, Lease

has been guaranteed by Michael H. Carrel, an officer of Zamba.

 

C.            Fidelity and Zamba have agreed to terminate the Leases,

and any amendments or modifications thereto, on the terms and conditions set

forth below.

 

Now, therefore, for good and

valuable consideration, the receipt and sufficiency of which is hereby

acknowledged, the parties hereto agree as follows:

 

1.             Termination

of Leases.  Provided that Zamba

performs all of its obligations under Section 2 of this Agreement, the Leases

shall be deemed terminated as of the first event occurring in Section 3 of this

Leases (the “Termination Date”).

 

2.             Termination

Payment.  As a condition to

Fidelity’s obligations under this Agreement, and in consideration for

Fidelity’s agreement to terminate the Leases, Zamba shall pay to Fidelity the

sum of One Hundred Twenty Thousand Dollars ($120,000) (the “Termination Payment”).  The Termination Payment shall be payable in

eight increments of Fifteen Thousand Dollars ($15,000), with the first payment

to be made on October 1, 2002, and the seven subsequent payments to be made on

the fifteenth of each respective month, commencing on October 15, 2002, and

ending on April 15, 2003 (a “Payment”). 

Each Payment shall

be delivered to Fidelity’s attorney in the form of a check made payable to “The

Law Office of Josh Jacobson P.A. IOLTA Account f/b/o Fidelity Leasing, a

division of EAB Leasing Corp.” and mailed to the following address: The Law

Office Of Josh Jacobson, P.A., 120 South Sixth Street, Suite 1515, Minneapolis,

MN 55402.  Additionally, on or

before October 31, 2002, Zamba shall make available for collection by Fidelity

the Equipment in the types and quantities listed on Exhibit 1, which is

attached to this Agreement and incorporated herein by this reference.  At no additional cost to Zamba, Zamba shall

reasonably cooperate with Fidelity to effectuate Fidelity’s collection of the

Equipment.  Fidelity shall provide Zamba

with at least one week advance notice of the date(s) and approximate time(s) it

intends to collect the equipment.

 

3.             Termination

Date.  Subject to prior execution of

this Agreement by Fidelity and Zamba, the Leases shall terminate upon receipt

by Fidelity of the eighth and final Payment.

 

4.             Zamba

Release.  As of the Termination

Date, Zamba, for itself and for its affiliated

corporations and partnerships, officers, directors, shareholders, agents,

representatives, employees, attorneys, shareholders, successors in interest,

personal representatives, heirs,

assigns and each of them, absolutely, fully and forever releases and discharges

Fidelity and Fidelity’s respective members, officers, partners, agents,

representatives, employees, servants, attorneys, successors in interest,

assigns and each of them, whether past, present or future, of and from any and

all claims, demands, liabilities, obligations, losses, controversies, costs,

expenses, attorneys’ fees and damages of every kind, nature, character or

description whatsoever, whether in law or in equity, and whether known or

unknown, suspected or unsuspected, arising out of, connected with, or in any

way related to the Leases or the Equipment. 

Zamba acknowledges and agrees that the release set forth above applies

to all claims relating to the Leases or the Equipment whether those claims are

known or unknown, foreseen or unforeseen.

 

5.             Fidelity

Release.  Subject to the performance

by Zamba of all of its obligations under this Agreement, as of the Termination

Date, Fidelity, for itself and for its

affiliated corporations and partnerships, members, officers, agents, representatives,

employees, attorneys, shareholders, successors in interest, personal

representatives, heirs, assigns and each of them, absolutely, fully and forever

releases and discharges Zamba and its officers, directors,

 

	

  Initialed by:

  
	

  /s/ DHE

  	

  Fidelity

  
	

  /s/ IN

  	

  Zamba

  
	

  /s/ MHC

  	

  Guarantor

  

 

1

 

shareholders, agents, representatives, employees,

servants, attorneys, successors in interest, assigns and each of them, whether

past, present or future, of and from any and all claims, demands, liabilities,

obligations, losses, controversies, costs, expenses, attorneys’ fees and

damages of every kind, nature, character or description whatsoever, whether in

law or in equity, and whether known or unknown, suspected or unsuspected,

arising out of, connected with, or in any way related to the Leases or the

Equipment.  Fidelity acknowledges and

agrees that the release set forth above applies to all claims relating to the

Leases or the Equipment whether those claims are known or unknown, foreseen or

unforeseen.

 

6.             Confession of Judgment.  Zamba shall execute the attached Confession of Judgment (the “Confession

of Judgment”) in the amount of the Termination Payment, reduced by the

aggregate amount of each Payment received by Fidelity prior to its submission

of the Confession of Judgment.  Upon a

default in payment by Zamba under this Agreement that is not remedied within

fifteen (15) business days of written notice of such default from Fidelity to

Zamba, Fidelity may submit the Confession of Judgment to the court identified

in the Confession of Judgment.

 

7.             Fidelity Release of Guarantor.  Subject to the receipt by Fidelity of the

fourth Payment, which is  to be made on

December 15, 2002, Fidelity, for itself and

for its affiliated corporations and partnerships, members, officers, agents,

representatives, employees, attorneys, shareholders, successors in interest,

personal representatives, heirs, assigns and each of them, absolutely, fully

and forever releases and discharges the Guarantor of and from any and all

claims, demands, liabilities, obligations, losses, controversies, costs,

expenses, attorneys’ fees and damages of every kind, nature, character or

description whatsoever, whether in law or in equity, and whether known or

unknown, suspected or unsuspected, arising out of, connected with, or in any

way related to the Leases or the Equipment. Fidelity acknowledges and agrees

that the release set forth above applies to all claims relating to the Leases

or the Equipment whether those claims are known or unknown, foreseen or

unforeseen.

 

8.             Release by Guarantor.  As of the date of Fidelity’s Release of Guarantor, Guarantor, for itself and for its affiliated corporations

and partnerships, officers, directors, shareholders, agents, representatives,

employees, attorneys, shareholders, successors in interest, personal

representatives, heirs, assigns and each of them, absolutely, fully and forever

releases and discharges Fidelity and Fidelity’s respective members, officers,

partners, agents, representatives, employees, servants, attorneys, successors

in interest, assigns and each of them, whether past, present or future, of and

from any and all claims, demands, liabilities, obligations, losses,

controversies, costs, expenses, attorneys’ fees and damages of every kind,

nature, character or description whatsoever, whether in law or in equity, and

whether known or unknown, suspected or unsuspected, arising out of, connected

with, or in any way related to the Leases or the Equipment.  Guarantor acknowledges and agrees that the

release set forth above applies to all claims relating to the Leases or the

Equipment whether those claims are known or unknown, foreseen or unforeseen.

 

9.             Notices.  Any written notices to be given hereunder by

either party shall be deemed effective upon personal delivery or within three

business days of mailing the notice to the party to be served at the address

below.

 

	

  Fidelity:

  	

   

  	

  Zamba:

  	

   

  
	

  The Law

  Office of Josh Jacobson, P.A.

  	

   

  	

  Zamba Corporation

  	

   

  
	

  120 South Sixth Street

  	

   

  	

  3033 Excelsior Blvd.

  	

   

  
	

  Suite 1515

  	

   

  	

  Suite 200

  	

   

  
	

  Minneapolis, MN 55402

  	

   

  	

  Minneapolis, MN 55416

  	

   

  
	

  Fax: 612-339-5123

  	

   

  	

  Fax: 952-832-9383

  	

   

  
	

  Attn: Josh Jacobson

  	

   

  	

  Attn: General Counsel

  	

   

  

 

	

  Guarantor:

  	

   

  	

   

  	

   

  
	

  Michael H. Carrel

  	

   

  	

   

  	

   

  
	

  Zamba Corporation

  	

   

  	

   

  	

   

  
	

  3033 Excelsior Blvd.

  	

   

  	

   

  	

   

  
	

  Suite 200

  	

   

  	

   

  	

   

  
	

  Minneapolis, MN 55416

  	

   

  	

   

  	

   

  
	

  Fax: 952-832-9383

  	

   

  	

   

  	

   

  

 

10.           Entire Agreement. This Agreement contains the entire agreement

between the parties and may only be modified or amended by a writing signed by

all parties.

 

11.           Governing Law.  This Agreement shall be governed in all

respects, including validity, interpretation and effect, by the laws of the

State of Minnesota, except for its choice of laws principles.  Any action regarding or relating to this Agreement

shall be venued in a state or federal court located in Hennepin County in the

State of

 

	

  Initialed by:

  
	

  /s/ DHE

  	

  Fidelity

  
	

  /s/ IN

  	

  Zamba

  
	

  /s/ MHC

  	

  Guarantor

  

 

2

 

Minnesota.

 

12.           No Assignment of Claims. The parties hereto represent and warrant that they

have not transferred or otherwise assigned, either by contract or operation of

law, any of the claims released under this Agreement.

 

13.           No Reliance on Representations.  Each party to this Agreement represents and

acknowledges that in executing this Agreement that party does not rely and has

not relied upon any representation or statement made by the other party or by

any of such other party’s agents, attorneys, or representatives with regard to

the subject matter, basis or effect of this Agreement or otherwise, other than

those representations and statements specifically stated in this written

Agreement.

 

14.           Counterparts and Facsimiles.

This Agreement may be executed in one or

more counterparts, which shall be deemed effective upon full execution of this

Agreement by all parties.  Each

counterpart shall be deemed an original, but all of which together shall

constitute one and the same instrument and agreement.  In addition, a copy of this Agreement executed by a party hereto

and telecopied to the other party shall be deemed to constitute delivery of an

originally executed copy of this Agreement to the other party.  A facsimile signature shall be enforceable

to the same extent as an original signature.

 

15.           Authority.  The

parties executing this Agreement represent that they each have authority to

enter into this Agreement, and that this Agreement is binding on such party and

enforceable in accordance with its terms. 

The persons executing this Agreement on behalf of the parties to this

Agreement represent and warrant that they individually have authority to enter

into this Agreement on behalf of such parties.

 

IN WITNESS WHEREOF, the parties hereby execute this

Agreement.

 

	

  FIDELITY

  	

  ZAMBA

  
	

   

  	

   

  
	

  Fidelity Leasing

  	

  ZAMBA Corporation

  
	

   

  	

   

  
	

  By: 

  	

  /s/ David H. English

  	

   

  	

  By: 

  	

  /s/ Ian Nemerov

  	

   

  
	

   

  	

   

  
	

  Name: David H. English

  	

  Name: Ian Nemerov

  
	

   

  	

   

  
	

  Title: Sr. VP

  	

  Title: General Counsel

  
	

   

  	

   

  
	

  Date: 9/24/02

  	

  Date: 9-27-02

  
	

   

  	

   

  
	

   

  	

  GUARANTOR

  
	

   

  	

   

  
	

   

  	

  Michael H. Carrel

  
	

   

  	

   

  
	

   

  	

  By: 

  	

  /s/ Michael H. Carrel

  	

   

  
	

   

  	

   

  
	

   

  	

  Date: 9-27-02

  
							

 

	

  Initialed by:

  
	

  /s/ DHE

  	

  Fidelity

  
	

  /s/ IN

  	

  Zamba

  
	

  /s/ MHC

  	

  Guarantor

  

 

3

 

Exhibit

1

 

	

  Quantity

  	

   

  	

  Type

  	

   

  	

  Location

  	

   

  	

   

  
	

  16

  	

   

  	

  Tall

  Poles

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  30

  	

   

  	

  Short

  Poles

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  69

  	

   

  	

  48”

  Arms

  	

   

  	

  Barrett

  	

  (17

  at FSI)

  	

   

  
	

  21

  	

   

  	

  60”

  Arms

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  42

  	

   

  	

  Boundary

  Screens - 60” W

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  114

  	

   

  	

  Boundary

  Screens - 48”

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  22

  	

   

  	

  Boundary

  Screens - 36”

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  21

  	

   

  	

  Display

  Screens - 60”W

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  19

  	

   

  	

  Display

  Screens

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  50

  	

   

  	

  Boomerang

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  50

  	

   

  	

  Input

  Table

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  24

  	

   

  	

  Pole

  Shelf

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  50

  	

   

  	

  Tool

  Rail

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  50

  	

   

  	

  Vertical

  Tray

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  50

  	

   

  	

  Diagonal

  Tray

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  26

  	

   

  	

  Horizontal

  Tray

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  21

  	

   

  	

  Bookshelf

  & Holders

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  5

  	

   

  	

  Task

  Chair - purple

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  16

  	

   

  	

  Kiva

  Book Shelf w/oversail

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  37

  	

   

  	

  Kiva

  Pebble table

  	

   

  	

  Barrett

  (24)

  	

  Denver

  (2)  Campbell (11)

  	

   

  
	

  4

  	

   

  	

  Martin

  Brattrud Lounge chair - purple

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  3

  	

   

  	

  Martin

  Brattrud Lounge chair - green

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  22

  	

   

  	

  Mobile

  ped - Meridian

  	

   

  	

  Barrett

  (8)

  	

  Denver

  (2)  Campbell (12)

  	

   

  
	

  4

  	

   

  	

  Whiteboard

  - pole attached

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  3

  	

   

  	

  Whiteboard

  - Kiva mobile

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  49

  	

   

  	

  Lockers

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  5

  	

   

  	

  Canopy

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  3

  	

   

  	

  Ladder

  shelf

  	

   

  	

  Minneapolis

  	

   

  	

   

  
	

  3

  	

   

  	

  Round

  Table -Bar height -Falcon

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  3

  	

   

  	

  Versteel

  Oval Table

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  4

  	

   

  	

  Versteel

  1/4 Round table

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  6

  	

   

  	

  Versteel

  Rectangle Table

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  52

  	

   

  	

  Keilhauer

  Side Chair

  	

   

  	

  Barrett

  (46)

  	

  Denver

  (6)

  	

   

  
	

  21

  	

   

  	

  Monitor

  pods

  	

   

  	

  Barrett

  	

   

  	

   

  
	

  22

  	

   

  	

  Kiva

  Wing Table

  	

   

  	

  Barrett

  (21)

  	

  Denver

  (1)

  	

   

  
	

  8

  	

   

  	

  Kiva

  Metal Bookshelf - Mobile

  	

   

  	

  Barrett

  (2)

  	

  Campbell

  (6)

  	

   

  
	

  1

  	

   

  	

  Geiger

  Brisk Reception Desk

  	

   

  	

  FSI

  	

   

  	

   

  
	

  1

  	

   

  	

  PeterPepper

  Drum Table

  	

   

  	

  FSI

  	

   

  	

   

  
	

  1

  	

   

  	

  Geiger

  Triuna Gallery Reception Desk

  	

   

  	

  Campbell

  	

   

  	

   

  
	

  1

  	

   

  	

  Geiger

  Round table

  	

   

  	

  Campbell

  	

   

  	

   

  
	

  4

  	

   

  	

  Bernhardt

  Sinclaire Lounge Chair

  	

   

  	

  Campbell

  	

   

  	

   

  

 

	

  Initialed by:

  
	

  /s/ DHE

  	

  Fidelity

  
	

  /s/ IN

  	

  Zamba

  
	

  /s/ MHC

  	

  Guarantor

  

 

4

 

Legend

Barrett = Edina, MN

warehouse

FSI = Plymouth, MN

warehouse

Denver = 10900 S.

Parker Road, Suite 101, Parker, CO 80134-3453 office

Campbell = 655

Campbell Technology Parkway, Suite 100, Campbell, CA 95008 office

Minneapolis = 3033

Excelsior Blvd., Suite 200, Minneapolis, MN 55416 office

 

 

 

	

  Initialed by:

  
	

  /s/ DHE

  	

  Fidelity

  
	

  /s/ IN

  	

  Zamba

  
	

  /s/ MHC

  	

  Guarantor

  

 

5Exhibit

10.06

 

LEASE TERMINATION AGREEMENT AND MUTUAL RELEASE OF CLAIMS

 

This Lease Termination Agreement and Mutual Release of

Claims (“Agreement”) is made, for reference purposes, as of the 4th day of

October, 2002, by and between SQUARE 24 ASSOCIATES dba SQUARE 24 ASSOCIATES,

L.P. (“Landlord”), on the one hand, and ZAMBA CORPORATION (“Tenant”), on the

other hand, with reference to the following facts:

 

A.            Landlord

and Tenant entered into an Office Lease dated as of September 14, 1998 (the

“Original Lease”), as amended by that certain First Amendment to Lease dated as

of October 15, 1998 (the “First Amendment”), that certain Second Amendment to

Lease dated as of December 21, 2000 (the “Second Amendment”), and that certain

Third Amendment to Lease dated as of February 6, 2002 (collectively, the

“Lease”), pursuant to which Tenant agreed to lease from Landlord certain office

space located at Hacienda West, Suite 345, 3875 Hopyard Road, Pleasanton, CA

(“the Premises”), which Premises are more fully described in the Lease.

 

B.            Under

the Original Lease, Tenant provided Landlord with a security deposit in the

amount of $10,791.00.  Under the Second

Amendment, Tenant provided Landlord with an additional security deposit of

$24,815.91.  The original security

deposit and the additional security deposit shall be referred to collectively

as the Security Deposit.

 

C.            On

or about January 9, 2002, Tenant and Park Place Capital Corporation (“Park

Place”) entered into a Sublease dated as of January 9, 2002 (the “Sublease”), pursuant

to which Park Place agreed to sublease from Tenant approximately 6,201 rentable

square feet, as more particularly described in the Sublease (the “Sublease

Premises”).  Landlord granted its

consent to the Sublease pursuant to that certain Sublease Consent and Agreement

dated as of February 7, 2002 between Landlord, Tenant, and Park Place (the

“Consent”).

 

D.            On

or about July 12 and July 15, 2002, Landlord served Tenant with a Three-Day

Notice To Pay Or Quit Possession Of The Premises And Notice Of Termination.

 

E.             On

or about July 12, 2002, Landlord served Park Place with a Notice Of Election To

Continue Sublease Following Termination Of Master Lease pursuant to Section

4.1(a) of the Sublease Consent and Agreement (the “Notice”).

 

F.             Except

for Park Place’s continued occupancy of the Sublease Premises, Tenant has

vacated the Premises.

 

G.            The

parties now desire to settle and compromise any and all claims which they have

against each other arising out of the Lease and/or the Premises.

 

NOW, THEREFORE, in consideration of the foregoing, and

the mutual promises contained herein, and for other good and valuable

consideration, the parties agree as follows:

 

1.             Payment.  Tenant shall pay Landlord as follows:

 

1

 

(a)           Upon

execution of the Agreement, Tenant relinquishes all right, interest and

entitlement to the Security Deposit.

 

(b)           On

or before October 4, 2002, Tenant shall pay, by cashier’s check made payable to

“Square 24 Associates,” the sum of Thirty Thousand Dollars and no cents

($30,000.00).

 

(c)           On

or before October 18, 2002, Tenant shall pay, by cashier’s check made

payable to “Square 24 Associates,” the sum of Twenty Thousand Dollars and no

cents ($20,000.00).

 

2.             Assignment of Tenant’s Interest in Sublease. 

Tenant hereby acknowledges that, pursuant to Section 4.1(a) of the

Consent, Landlord has elected to continue the Sublease as a direct lease,

subject to the provisions of Section 4.2 of the Consent.  In connection therewith, Tenant hereby

assigns and transfers to Landlord all of Tenant’s right, title and interest in

and to the Sublease, effective as of July 19, 2002.  Without limiting the foregoing, Tenant hereby irrevocably assigns

to Landlord any and all claims, of any nature whatsoever, arising from or

relating to the Sublease which Tenant has against Park Place.  If the assignment of any of such claims is

deemed to be unlawful or otherwise unenforceable, Tenant shall nevertheless be

obligated to assign the other, assignable claims to Landlord.  Nothing herein shall obligate the Landlord

to prosecute or take any other action on the claims assigned to them by

Tenant.  In addition, Tenant agrees that

it shall take all action necessary to transfer to Landlord all of Tenant’s

rights in connection with the security deposit provided by Park Place pursuant

to the Sublease.

 

3.             Lease Termination. 

Landlord and Tenant acknowledge and agree that the Lease is deemed

terminated as of July 19, 2002, and Tenant and Landlord shall have no further

rights, obligations, or claims with respect to each other arising under the

Lease, except for (a) the waivers of claims or rights and the releases and the

obligations of Tenant under the Lease to indemnify, protect, defend and hold

harmless Landlord and other Indemnitees (as defined in Section 5 below), and

(b) any obligations arising under this Agreement.  Tenant hereby agrees that any and all options granted to Tenant

under the Lease to extend the term of the Lease and any rights of first refusal

or first offer granted to Tenant under the Lease, if any, shall be of no

further force or effect.

 

4.             Releases.

 

(a)           Release

of Tenant.  Following satisfaction

of the payment obligations specified in Paragraph 1, Landlord, for itself and

its past, present and future parents, subsidiaries, affiliated entities,

directors, partners, officers, shareholders, members, agents, employees,

successors and assigns, and each of them (the “Landlord Releasing Parties”), do

hereby release and forever discharge Tenant, its past, present and future

parents, subsidiaries, affiliated entities, directors, partners, officers,

shareholders, members, agents, employees, successors and assigns (collectively

“the Tenant Released Parties”) of and from any and all claims, demands,

damages, debts, liabilities, actions and causes of action of every kind and

nature whatsoever (hereinafter “Claims”), whether now known or unknown, which

the Landlord Releasing Parties ever had, now have, or may have against the

Tenant Released Parties, or any of them, which relate in any

 

2

 

way to the Lease, the Premises, the Sublease, and/or the Consent,

except as specified in paragraph 3 hereof. 

Nothing herein, however, shall be construed as a release of any Claims

that the Landlord Releasing Parties may have against Park Place.

 

(b)           Release

of Landlord.  Upon execution of the

Agreement, Tenant, for itself and its past, present and future parents,

subsidiaries, affiliated entities, directors, partners, officers, shareholders,

members, agents, employees, successors and assigns, and each of them

(collectively, the “Tenant Releasing Parties”), do hereby release and forever

discharge Landlord, its past, present and future parents, subsidiaries,

affiliated entities, directors, partners, officers, shareholders, members,

agents, employees, successors and assigns, and each of them (the “Landlord

Released Parties”), of and from any and all Claims, whether now known or

unknown, which the Tenant Releasing Parties ever had, now have, or may have against

the Landlord Released Parties, or any of them, which relate in any way to the

Lease, the Premises, the Sublease, and/or the Consent.

 

(c)           Waiver

of Civil Code Section 1542.  It is

understood that there is a risk that subsequent to the execution of this

Agreement, each of the Parties might incur or suffer loss, damage or injury

which is in some way related to, or caused by, matters or transactions which

are the subject of this Agreement, but which were unknown or unanticipated at

the time this Agreement is signed.  It

is understood that the facts with respect to which this general release is

given may hereafter turn out to be different from the facts now known to it or

believed to be true, and each of the Parties expressly assume the risk of the

facts turning out to be so different and agree that the foregoing general

release shall be in all respects effective and not subject to termination or

rescission as a result of any such difference in facts.  Each of the Parties acknowledge that they

have been advised by legal counsel and are familiar with the provisions of

California Civil Code section 1542, which provides as follows:

 

A general release does not extend to claims which the

creditor does not know or suspect to exist in his favor at the time of executing

the release, which is known by him must have materially affected his settlement

with the debtor.

 

Each of the Parties hereto, being aware of said code section, with full

knowledge and intent to execute a full and complete release, hereby expressly waive

any rights they may have thereunder, as well as under any other statute or

common law principles of similar effect.

 

5.             Representations and Warranties.

 

(a)           Tenant’s

Representation.  Tenant represents

and warrants to Landlord that (i) with the exception of the Sublease, Tenant

has not assigned, encumbered or otherwise transferred the Lease or any interest

under the Lease or any claim, obligation, action or cause of action arising

from the Lease; (ii) all corporate action has been taken by Tenant to approve

this Agreement, and the person signing this Agreement on behalf of Tenant has

been duly authorized to sign and deliver this Agreement on behalf of Tenant;

(iii) no proceeding has been commenced by or against Tenant which seeks to

declare Tenant a bankrupt or an insolvent or to liquidate or dissolve the

corporation, Tenant has made no general assignment of its assets for the

benefit of its creditors, and no corporate action has been taken by Tenant

authorizing any such proceeding,

 

3

 

action, or assignment; (iv) to the best of Tenant’s knowledge, Tenant

did not use, manufacture, store, or dispose of any hazardous or controlled

substances or wastes which are regulated by any state, local or federal laws or

ordinances on the Premises and to the best of Tenant’s knowledge, no such

hazardous or controlled substances or wastes have been spilled or otherwise

disposed of on the Premises during the term of this Lease; and (v) this

Agreement constitutes a legal, valid and binding Agreement of Tenant

enforceable against Tenant in accordance with its terms.

 

(b)           Landlord’s

Representation.  Landlord represents

to Tenant that (i) all partnership and/or corporate action has been taken by

Landlord to approve this Agreement and the person signing the Agreement on

behalf of Landlord has been duly authorized to sign and deliver this Agreement

on behalf of Landlord; and (ii) this Agreement constitutes a legal, valid and

binding Agreement of Landlord enforceable against Landlord in accordance with

its terms.

 

6.             Miscellaneous.

 

(a)           Voluntary

Agreement.  This Agreement is

executed voluntarily and without duress or undue influence on the part of or on

behalf of the parties, or of any other person, firm or other entity.

 

(b)           Parties

Represented by Counsel.  The parties

represent and acknowledge that each of them has been represented by counsel of

their choice in the negotiations for and in the preparation of this Agreement

and all matters covered by or related to this Agreement.  Each party has read this Agreement and has

been advised by such counsel with respect to all rights which are affected by

this Agreement and is fully aware of the contents of this Agreement and its

legal effect.  Each party hereby

authorizes and directs its respective attorneys to execute and deliver such

other and further documents as may be required to carry out the terms of this

Agreement.

 

(c)           Construction

and Enforceability.  This Agreement

is the product of negotiations between the Landlord and Tenant and shall not be

construed strictly for or against either party.  If any provision of this Agreement shall be held to be invalid or

unenforceable, it shall be adjusted rather than voided, if possible, in order

to give effect to the intent of the Landlord and Tenant, and all other

provisions of this Agreement shall continue in full force and effect to the

extent permitted by law.

 

(d)           Entire

Agreement.  The parties agree and

acknowledge that this Agreement represents the entire understanding between

them, and that no promises or representations of any kind other than as set

forth herein have been made by, or on behalf of, the parties to one

another.  Each party specifically agrees

that, in entering into this Agreement, he, she or it has not relied on any

representation or opinion of fact, law or otherwise, made by any other party or

attorney, other than the representations set forth in writing herein.

 

(e)           Successors

and Assigns.  This Agreement is

binding upon and shall inure to the benefit of the Parties and their respective

successors, assigns, predecessors, agents, servants, partners, officers,

directors, attorneys, employees and representatives, and their respective

present, former and future heirs, executors and administrators.

 

4

 

(f)            Attorneys’

Fees and Costs.  Landlord and Tenant

shall each bear their own costs and attorneys’ fees incurred in connection with

this Agreement.  In any arbitration,

quasi-judicial or administrative proceedings or any action in any court of

competent jurisdiction, brought by either party to enforce any party’s rights

or remedies under this Agreement, including any action to collect any payments

required under this Agreement, the prevailing party shall be entitled to

reasonable attorneys’ fees and all costs, expenses and disbursements in

connection with such action, including the costs of reasonable investigation,

preparation and professional or expert consultation, which sums may be included

in any judgment or decree entered in such action in favor of the prevailing

party.  This provision is separate and

several and shall survive the merger of this Agreement into any judgment on

this Agreement.

 

(g)           Venue.  Any suit, action, arbitration or other

proceeding of any nature whatsoever filed or initiated to enforce or interpret

the provisions of this Agreement shall be filed in the Superior Court of the

City and County of Alameda, California or in the Federal District Court for the

Northern District of California, if appropriate under federal law, and in no

other forum.

 

(h)           Governing

Law.  This Agreement is entered into

in accordance with the laws of the State of California and shall be governed by

and interpreted in accordance with those laws.

 

(i)            Modifications

and Amendments.  No amendment,

change or modification of this Agreement shall be valid unless made in writing

and signed by all parties hereto.

 

(j)            Further

Assurances.  Each of the parties

hereto shall execute and deliver any and all additional papers, documents and

other assurances and shall do any and all acts or things reasonably necessary

in connection with the performance of their obligations hereunder to carry out

the express intent of the parties hereto.

 

(k)           Parties

to Bear Own Costs.  All parties to

this Agreement shall bear their own attorneys’ fees and costs of suit in the

negotiations for and completion of this Agreement.

 

(l)            Headings.  The various headings used in this Agreement

are solely for the convenience of the parties and shall not be used to

interpret this Agreement.

 

(m)          Authority.  Each signatory hereto represents that each

has the requisite and actual authority to bind the party for whom such

signatory signs.

 

5

 

IN WITNESS

WHEREOF, the undersigned have executed this Agreement as of the first date

hereinabove written.

 

	

  TENANT:

  	

  LANDLORD:

  
	

   

  	

   

  
	

  ZAMBA CORPORATION,

  a Delaware corporation

  	

  SQUARE 24 ASSOCIATES

  (d.b.a. Square 24 Associates L.P.)

  
	

   

  	

   

  
	

   

  	

  By:

  	

  Carr Real Estate Services, L.L.C.,

  
	

  By:

  	

  /s/ Ian Nemerov

  	

   

  	

  Its:

  	

  General Partner

  
	

   

  	

   

  
	

  Name: Ian Nemerov

  	

  By:

  	

  Carr Real Estate Services Partnership

  
	

   

  	

  Its:

  	

  Managing Partner

  
	

  Its:      General

  Counsel

  	

   

  
	

   

  	

  By:

  	

  Carr Realty, L.P.,

  
	

   

  	

  Its:

  	

  Managing Partner

  
	

   

  	

   

  
	

   

  	

  By:

  	

  CarrAmerica Realty Corporation

  
	

   

  	

  Its:

  	

  General Partner

  
	

   

  	

   

  
	

   

  	

  By: 

  	

  /s/ Christopher Peatross

  	

   

  
	

   

  	

   

  	

  Christopher Peatross

  Managing Director

  
													

 

6

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