Document:

Exhibit 10.68

 

AMENDMENT NO. 1 TO LOAN AGREEMENT

 

THIS AMENDMENT
NO. 1 (“Amendment”) is made and
entered into as of February 19, 2003, by and between ZAMBA CORPORATION and ENTRX
CORPORATION and modifies the Loan Agreement (“Loan”) dated November 4, 2002, between the
parties.  Except as expressly set forth
herein, the terms and conditions of the Loan sTOhall continue in full force and
effect.  All references to section
numbers below refer to the respective section numbers in the Loan.  Capitalized terms shall bear the meanings
for such terms set forth in the Loan.

 

1.              Section 3.1.4 is modified by adding the
following to the end of the Section: “Subject to Borrower’s receipt from Lender
of $450,000 on or prior to February 19, 2003, and $200,000 on or prior to March
15, 2003, representing the entire remaining balance of the Second Advance,
Lender shall be entitled to convert the aggregate principal amount of the First
Advance and the Second Advance that have been provided to Borrower, as well as
$6,888.89 of interest that has accrued prior to this Amendment, into shares of
NextNet Wireless, Inc. (“NextNet”)
Series A Preferred Stock held by Borrower (the “Shares”) at a per share conversion price that is the lesser of
$6.00 per share or such lower initial per share price (on a common share
equivalent basis, without giving effect to differences in rights or to
anti-dilution provisions or any other purchase price adjustments set forth in
the NextNet financing agreement) that NextNet agrees to receive for any sale of
other preferred stock in an amount that is at least one million dollars
($1,000,000.00) before June 30, 2003.  A
prior election by Lender to convert the Advances it provided and eligible
interest under this Agreement  shall not
affect its eligibility to receive the benefit of conversion at a lower initial
per share price from a subsequent NextNet financing agreement if Lender would
have otherwise been eligible pursuant to this Agreement to obtain such lower
initial per share price if it had waited until the NextNet financing agreement
was completed to exercise its conversion rights.  If Borrower does not receive the entire remaining balance of the
Second Advance by remittances from Lender to Borrower of the amounts of $450,000
on or prior to February 19, 2003, and $200,000 on or prior to March 15, 2003,
the remedies set forth above that have not already been effectuated pursuant to
provisions of this Amendment shall apply. 
Notwithstanding the above, each party acknowledges that Lender’s receipt
of the Shares, at any price, may be subject to the rights of first refusal on
the parts of NextNet and certain of its investors as set forth in the Right of
First Refusal Agreement.”

 

2.              Section 3.1.5 is modified by inserting,
at the end of the paragraph, the following: “No interest shall accrue or become
due during any period in which there exists an Event of Default by Lender.  Any interest not paid prior to the date of
this Amendment shall not be due if during such period there was an Event of
Default by Lender.”

 

1

 

3.              Section 3.1.3 is eliminated in its
entirety and Borrower hereby expressly waives the obligation of Lender to
advance the Third Advance, and Section 6.2 is eliminated in its entirety and
Lender expressly waives its rights to convert all outstanding Advances under
the Note into shares of Borrower’s common stock.

 

4.              Section 3.3 of the Loan is deleted and
the parties acknowledge that all of Borrower’s rights and Lender’s obligations
related to the Option set forth in the Loan are terminated upon execution of
this Amendment, including but not limited to any obligation of Borrower to
reserve a sufficient amount of Shares for exercise of the Option.

 

5.              Section 4.12 is modified by deleting
“1,083,333” from the sixth line and replacing same with “583,333.”

 

6.              Section 6.1.1 is modified by adding,
prior to “The NextNet Conversion Rate” in the eighth line, the following:
“Subject to Borrower’s receipt from Lender of $450,000 on or prior to February
19, 2003, and $200,000 on or prior to March 15, 2003, representing the entire
remaining balance of the Second Advance, . . .”

 

7.              Section 6.3.1 is modified by deleting the
third paragraph and replacing it with the following: “Upon execution of this
Amendment, the parties shall instruct the Collateral Agent to return 250,000
shares of Series A Preferred Stock of NextNet from the Collateral to
Borrower.  On July1, 2003, the
Collateral Agent shall return to Borrower all shares of Collateral not
previously issued or returned.”

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be executed and delivered the date
and year first above written.

 

	
   

  	
  ZAMBA CORPORATION,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael H. Carrel

  	
   

  
	
   

  	
  Name: Michael H. Carrel

  
	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  ENTRX CORPORATION,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Brian Niebur

  	
   

  
	
   

  	
  Name: Brian Niebur

  
	
   

  	
  Title: Chief Financial Officer

  
						

 

2Exhibit

10.69

 

SETTLEMENT

AGREEMENT AND RELEASE

 

THIS AGREEMENT is entered

into as of March 11, 2003 between Key

Equipment Finance (“Key”), 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 Zamba Corporation (“Zamba”), a Minnesota corporation with

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

Minnesota.  Key is the Plaintiff

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

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

Zamba Corporation, Court File: CT 02-017418.

 

Key and Zamba have entered

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

of a Master Equipment Lease Agreement and three Equipment Schedules

(“Lease”).  A dispute has arisen between

Zamba and Key as to the remaining obligations under the Lease.

 

NOW, THEREFORE, KEY AND ZAMBA AGREE AS FOLLOWS:

 

1.             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.

 

2.             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

 

1

 

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.  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. 

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.  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. 

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.

 

In

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

Lease.

 

3.             This Settlement Agreement and

Release, including attached exhibits, supersedes all prior agreements,

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

Key.  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.

 

4.             Upon execution of this Settlement

Agreement and Release and the corresponding Promissory Note and Verified

Confession of Judgment, the parties authorize

 

2

 

their respective counsel to stipulate without

costs, disbursements or attorney’s fees to either side to the dismissal with

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

Finance International, Inc. v. Zamba Corporation, Court File: CT 02-017418.

 

5.             The stipulation of dismissal with

prejudice of the pending action above-referenced shall not impede Key’s ability

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

conditions of the Promissory Note.

 

6.             Each party warrants and represents

that the person signing below has authority to enter this contract.  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.  Key further warrants and represents that it

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

Corporation (“Leasetec”) and that Leasetec assigned to Key all of its interests

in the Lease.  Key agrees to indemnify

Zamba, including pay all costs, disbursements, attorneys’ fees and judgments,

for any claim brought against Zamba by Leasetec or an assignee of the Lease.

 

7.             This Settlement Agreement and

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

State of Minnesota.

 

8.             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.

 

IN WITNESS WHEREOF, 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.

 

3

 

	

   

  	

  Key

  Equipment Finance

  
	

   

  	

   

  
	

   

  	

   

  
	

  March

  13, 2003

  	

   

  	

  By:

  	

  /s/

  Sal Boschia

  	

   

  
	

  Date

  	

  Its:

  	

  Manager

  Special Accounts

  	

   

  
	

   

  	

   

  
	

   

  	

  Zamba

  Corp.

  
	

   

  	

   

  
	

  March

  17, 2003

  	

   

  	

  By:

  	

  /s/

  Michael H. Carrel

  	

   

  
	

  Date

  	

  Its:

  	

  CFO

  	

   

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]