Free Amended Complaint - District Court of California - California

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S. 1 Katherine Clark(SBN 94871\ Law Officesof Katherine Clark S. 2 919 The Alameda SanJose, California95126 (408) 3 Telephone:6 s 0 l 350-7523 i 289-e303 4 Facsimile:(a08)436-8583 5 AtJqqqysfor Plaintiff TECHNOLOGY CREDIT CORPORATION 6 7 8 9 10 11 1 2 TECHNOLOGY CREDIT CORPORATION, 13 Plaintiff. 14
V.

LINITEDSTATES DISTRICTCOURT NORTHERN DISTRICTOF CALIFORNIA
SAN JOSEDIVISION

CASE NO.: C080360s PVT FIRSTAMENDEDCOMPLAINT FOR BREACHOF CONTRACT

15

1 6 KEY CORPORATE CAPITAL'INC.: 17 18 19 Defendants.

FINANCE, INC., sEXEQULP-I\4ENI

Plaintiff, TECHNOLOGY CREDITcoRpoRATIoN, hereby brings this INC.

2 0 action against Defendants KEY EQUIPMENT FINANCE,INC. andKEy 2 1 CORPORATE CAPITAL 22 23 24 25 26 27 28
F I R S TA M E N D E D C O M P L A I N T

PRELIMINARY ALLEGATIONS 1. JURISDICTION--This actionis a civil actionover which this Courrhas

originaljurisdictionunder28 U.S.C.$ 1332. The amountin controversy exceeds $75,000and thereis complete diversityof citizenship between Plaintiff and Defendants.

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I

2.

Plaintiff TECHNOLOGY CREDIT CORPORATION(hereinafter

2 "TCC") is a corporation which was incorporated Californiaand is validly existing in 3 underthe laws of the Stateof California, with its principalplaceof business San in 4 Jose, California. Plaintiff is authorizedto transact and is transacting business the in 5 NorthernDistrict of California. 6 3' Plaintiff is informedand believes and thereonalleges that Defendant 7 KEY EQUIPMENT FINANCE, INC. is a corporation which was incorporated in B Michiganand is validly existingunderthe laws of the Stateof Michigan,with its I principalplaceof business Superior, in Colorado.Plaintiff is informedand believes 10 andthereonalleges that Defendant KEY CORPORATECAPITAL, INC. is the 11 former nameof KEY EQUIPMENT FINANCE, INC. Plaintiff is informedand 12 believes that at all relevant timesherein,Defendants were doing business this in 13 judicial district. 14 4. VENUE-The contract which is the subjectmatterof this lawsuitwas 15 entered into in SanJose,California. The agreement expressly is governed the by 16 laws of the Stateof California. 17 5. Plaintiff is informedand believes and thereonalleges that at all times 18 19 20 21 22 23 relevant heretoeachDefendant was completely dominated and controlled its Coby Defendant and eachwas the alter-ego the other. of 6. Wheneverand whereverreference madein this Complaintto any act is

by a Defendant Defendants, or suchallegations reference and shall alsobe deemed to meanthe actsand failuresto act of eachDefendant jointly and actingindividually,

24 severally. 25 26 27 28

FIRST CAUSE ACTION OF (BREACHOF WRITTENCONTRACT) 7Plaintiffhereby incorporates andeveryparagraph forthabove, each set
FIRST AMENDED COMPLAINT

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I
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as though fully set forth herein. 8. on or aboutSeptember 30,2002,Defendant KEy coRpoRATE

3 CAPITAL, INC. filed a Complaintagainst TCC in the SantaClaraCountySuperior 4 Court(ActionNo. CV8I1546). The Complaint alleged, amongothercauses of 5 action,breachof contract.TCC answered the Complaintand filed a Cross6 Complaintfor damages. Followinga series mediationsessions, settlement of a 7 agreement was reached. 8 9. On or aboutAugust24,2004 in the City of SanJose,Santa Clara I County,California, Plaintiff TCC and DefendantKEY CORPORATECAPITAL, 10 INC. entered into a Settlement Agreement Release, copy of which is attached and a 11 as Exhibit 66,{" and made apart of this Complaint. In accordance with the termsof 12 the Settlement Agreement, Complaintand Cross-Complaint the filed in Action No. 13 CV811546were dismissed with prejudice.The Settlement Agreement superseded 14 all prior written agreements between TCC and KEY. All prior written agreements 15 were terminatedby the Settlement Agreement, with the exceptionthat Key agreedto 16 pay remarketingfeesto TCC, if any arose,underthe ongoing leaseto Bellsouth, 17 Equipment Schedule No. Oneto MasterLeaseAgreement No. Rll046F (the 18 "BellSouth Lease," which wasmistakenly referred asNumberRl10401A in the to 19 20 21 22 23 24 Settlement Agreement, A, Para.C(2).) Ex. 10. Agreement. 11. Paragraph C(2)(a)of the Settlement Agreement provides: lease, "lf Plaintiff TCC hasperformed of its obligations all underthe Settlement

purchase otherrevenues received Key from the BellSouthLeasebeyondthe or are by

payments due duringthe Initial LeaseTerm,thenKey will pay TCC a30Yo 25 lease fee 26 remarketing on all suchpost-InitialLeaseTerm revenues.Thesepost-Initial includeany month-to-month lease payments..." Paragraph . 27 LeaseTerm revenues Agreement "Key will pay TCC the remarketing states: 2 8 C(2Xb) of the Settlement fee
FIRST AMENDED COMPLAINT

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1 described subparagraph abovewithin 30 daysof receiptof any suchpost-Initial in a. 2 LeaseTerm revenues." 3 12. Plaintiff is informedandbelieves that KEY receivedsomepost-Initial

4 LeaseTerm payments from BellSouthbeginning November2,2005 and endingJune 5 2,2006" 6 13. Beginningin or aboutDecember 2007,Plaintiff TCC demanded of that 7 KEY pay TCC the 30o/o remarketing in accordance fee with the termsof the 8 Settlement Agreement. I 14. on DecemberI 3, 2007 Defendant KEy EeUIPMENT FINANCE , 10 (formerly KEY CORPORATE CAPITAL, INC.), through its Vice President and 11 SeniorWorkout Counsel, admittedin writing that KEY had receivedeight post12 Initial LeaseTerm paymentsfrom BellSouth. KEY asserted that a portion of each 13 paymentwent to pay personalpropertyand othertaxes,leaving a net to KEY for 14 eachpaymentof $142,300.08. KEY admittedthat30oh the total balance of 15 ($1,138,406.40) $341'591.92 is which is the amount due andowingto Plaintiff. 16 15. Defendants breached Settlement the Agreement failing to pay by 17 Plaintiff the remarketing feesduepursuant Paragraph to C(2) of the Settlement 18 Agreement. 19 16. DespitePlaintiff s multipledemands payment, for Defendants have 20 21 22 23 24 failedto and refuseto pay the sumof $341 which remainsdue and owing. ,591.92 17. As a resultof Defendants' breachof the Settlement Agreement, Plaintiff

hassustained damages a sumin excess $34I,5gl .92. in of 18. As a resultof Defendants' breach, Plaintiff is entitledto an awardof

interest the rateof l0o/operannumon the amountremaining at due. 2 5 prejudgment 26 27 28 REQUESTFOR RELIEF WHEREFORE, Plaintiff praysfor relief against Defendants follows: as
-4FIRST AMENDEDCoMPLAINT

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1

1.

Compensatory damages the amount $341,591 or an amount in of .92

2 according proof; to 3 4 5 6 7 8 I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
-5FIRST AMENDED CoMPLAINT

2. 3. 4.

Prejudgment pursuant California interest to Civil Code$3289; Costsof suit incurredherein;and Suchotherand furtherrelief as the courtmay deemproper.

Dated: September 2008 2,

LAW OFFICES KATHEzuNES. CLARK OF

/( ey..ffi,(flL'4&i\ (&,2 KhtheririeS.f
i .

-', lt,

Attorneysfor Plaintiff TECHNOLOGY CREDIT CORPORATION

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SETTLEME i\*T AGREEMENT .rt{0 REI-EASE
This senlemsnT Agreemuff and Reiease (refarsd ro herein as the '.Agroemenr-) rs arrgredrmo as of Augusi 24, 2004. b1' and berween; I(ey corporarc capiral inc. (.,Ke:....). rhe on one hand: and Technoiogy Credir Corporarion (..TCC.,). on the otner hand; on behalf of thgrnselves and their nredecessors. successors. recei'ers. assigns. aff,iiated enhrjes and subsidiaries- and theu past or present ou'ners. sharehoiders. parrnem- empioyees. agenrs. aJromeys'represennuves' office.s. directols. and any other person, finr: or corporabonno\^,. previousiv. or herernafter.responsible by or through rltern. Kev a116TCC are collecrivelv referod io herein as the -'oanies." -.s.. REctrais 1' Key ar:d T'CC entcred into an riqurpmeni Acquisirion Agreemcnr (rhe

"EAA"). daied Ocrober 10. l9gg. by whuch TCC agreodro seli ro Keir equtpmenr]easesthar TCC ong,lnued through refenal programs with vanous vendors. Berri,een 19gg anc 1001. rhe parnes enreredlnlo ransacrion-q fi'lrrhe sale from TCC r0 Kev of rhousards of equrnmen,i ieases lrhe "Leases"i. 2' Cn or about Apnl 10. 1992. the panies enrorsd. mrg a l{a-*arl:eting

Agreement by''*'hlch Key agreedto pa.! TCC a fee for :enarn romariiering g.,* evenrs1nv6lr",1ps dispositiou of leasedequpmsni irhe "Equiomenr'")d.unngandroi after rhe imriaj lsasererrn On or about october 14. i997. the parties enteredinro an Anrended RernarkeringAgreemenr. The

1992 Remarkenng AO'eemenrancl rhe 1997 AmendedRemarkering Agreemenr are collecrjveS,, referred io herein as the "Remarkedng Agreernents,.. 3' A dispute arose ben'een the panies regardLrg. among oiher rhinss.

wherher TCC had failed io properiv remii rc Ke1,all procereds recervei frogr the i.eitsesanc tiie
euoolu

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tsqulpmem' wherher l(ey had fllli;- paid TCC for ranarkering fees. and whether TCC had defamed l{,ey. 4' on Sepiernber30' ?002^ Kel' filed a Cornplainr for Breach of Conuaci"

etc- a-gaurslTCC in the Cairforn:a superior court. for tire cor.grt-.,, sanra clara- Acrron No. of CV8li546 (rhe--Acrron"l. An.o.mendedCompiaimu,as filed on January10.2mj. The

complarnr and rhe Amendec cornpiainr are collecdvell' :'eferredto herein as the --complainr..Tbe cornpiarnt soughi- arnong ourer things" acrualand puninve conversiorl ci*il thef a:rd tiefamanon. d"amages breach of conn-ac:. for

interuional inrerference wrth conu'acn:al reladons. rrade riisparagemem-

5'

Crnor about April 2. 200i. TC'c fired irs cross-complarnr (-'cross-

compiaint") agaiasi Key in rhe r\cnon,seeking. among othr riungs. TCC'sremarkerrng fees
and orher dzmagesi:nconnecrion\vith claiuis for breach c,f contraci_ conversionand. accoumrng. 6on Augusl 24- 2004" rhe paruesreacheda settlemeniof this nlaner. as lel

fonh in treir Senlerneni Memorandurn of rhar same d:rre. The1, confirm ani rinalur rliar se[lemen; b1'wav of t]us Ag:crncrrr_ '7 ' The facts and circumslancasreferr:edro in tiris Secrion A. inclucline an1.,

and all allegarlonsthar have been made oi couici havc be,:n made in rhe Compiain...rire Cross_ compiarm' or the Acdon* and anyrhrng related ro or a'rsrng our of the EAA. rhe li.ernarkerrng Agreemen$' rhe Leases. the Eqr-upment.or rhe defamatiorr ciaims. ar aJl) polnr in nme pnor Io the effecrjve ciateof tiris Agreernent are hereinafter referrerl lo as the ..Dispure... B' The partres wisn ro avoid the extsnsiv: rinre and fi:nner costs oi irtiearronand..

subject rc and upon fuIl satrsfacnonof tbe rerms of rhis -arg.ee[relt. to nrlil,anci filaljv senleand &scharge a'11 past and Dresentciaims. conuovcrsres. ciemauods. acrronsor-causesof actrorrwhrcfi

g 0 b h 5 ( )\ , 5 ' 5 F

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Ihe-vmav have or ciarm ro har,'e2sg2.ttt1 each olher. r-'i:rcL, arise out of. or are in an),way relared to. the Compiaini the Cross-Compiainr,rhe Action. rhe EA4.. the RemariieringAgreemenrs. the I-eases. Equipmenl the ciefamarion the clarms.oi the Dispute. c' follou,s: 1' within 10 business days of receiFt of a fuli1. execured original of tlls For and in considerationof the covenanrsdescribed belou. rhe oanes aEreeas

seulement A5reement.the panies wjll simuiran:ousiyexr:hange. *rrough counseL. foijorr,.ins rhe rwo checks.

a.

fC(l u,ill pay lie1, rhe -cumof Four Fiunored Fift1,Thousand dotlars ($450"000.00)l arrC

b'

Iiey will na-v Tcc. or irs dr,siggree. surnoi Onelv{ilhonEiehr rhe Hrrndred Fifty Thousanci iars($.l.g50.000. t. dol 00

Z-

As serfonh in the munralrelease paragraph bejow" in D andsubjecr rhe to furtherobhgations

otl:o te'rms this Aggeemenr' inrcnt of rhisAgesmmrr ro of ths: is rerminate all

the parrieshaveto eachothei with re*eard rhe EAA. tlte ro Rcmarkering Agreemenrs. Leases rhe andthe Equipmenrinciudingwitiroutiimiarion. anyobligation Key rc by pa),anyadd.*ionar or furureremarl:eting to TCC. The oneexceprion the fees ro lermrnarion rhese of nghtsis rjrarKey will pay remarketing ieesto TC('. if any anse.underthe ongolngieasero Belisouth. Number Rll040iA trhe "BellsouthLsase'^). u,hichcurrentiy e.nencis throughocrobei -'lniual Lease Tenn"1_ providedbelou.: a_s
a. If le;rse.purchaseor otherrevenuesare received by Kev rrom the

31. lgcj trhe

Bellsouth Lea*se beyond lhe leasepaymen$ due dwing $e in:tial LeaseTerm. pay then Kev.,,,,ill lCc a 30% remarkedng fee on iill such posr-Iniriai Lease Term revenues. Theseposr-inrrial

qf,bbiC \,) 'S F . ; i i q c r 5 'D O C .

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Lease Term revsrruesinclucie any month-to-monlhlensepa3rments" purcirases the equipmeni. of ieaserene'i''als'and Durci:ascsor renew'als prior ro the erpiradon of rhe imrial L:ai;e Term rin w'irich eveil rhe Presentvalue of the renls nol yel pard druing the irutial Lease Term sirall firsr be subracted from the eariy purchaseor renewalpayrnent).as weli as revenuesfrom the sale.renral o: ieas: of lhe rej.aleiegurpment rc,rhiri pantes. b. Ke1'wili pay TCC the remukemg fee ciescriberi rn suoparaeraph

a- above wi*un 30 days of recerpi of an1,sucirposr-iniriar I eassTerm ievenues. j' Kcy wilr be eniiricd ro receive rhe proceeds from the escrou, accouni $77.500. To faciiirarc

currentlv heid by sNS Netsolve. currenrlythoughrro toral apDfoxrmareli

thts payment.the panies u,il1jointiy exccurerhe lettet ro SNS lietsolve aaacheci herero.n:arked as Exhibit 1. TCC hereb:vwaivcs provision nrmrber l l of rhe Augusr :4 Senlsmenr MernoranOum condirroning rhrs settlemenion resoiurion of the ciarars berween TCC arrCus lnsurer' Golcien Eagie TCC rep:'esenrs thal all such cirims berween rt and Golcier Ea.sjr havs oeen resoived' and accordingly TCC fully bincis itseii'io rhrs Agreemenr anc rhe senienrenr conrempiatedhereundcr. 5. Wirhin l0 business days after uxchange of the cireci:s referencedrn

para$aPh C'l above' I(ey and TCC willjointly preDare rurd file a Requcsi for Drsmrssal. wrth pre-ludice" rhe Acdon. the complailr and the cross-conplainr. of D. For and in considerauonof the covsnslls :;etfonh rn SecrionC above.a;rC subtecr

ro rhe otherterms of t]:rs Agreemea1. paniesagreea-cFoljov,s: the 1Fxcepl as I(i the ExcludeciPreference Acnons oescibed belo,;..eachoan'

hereby relea-ses. ecqulls and for:v:r discharoetrh= nther nr,r\: tom a:?.., ali cjarrrs. and demanci-

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acnons.causesof acrioi. obirgarrons damages. promis;1,. conroversies.and

irabrirues an1 oi

nalure razi1415ss'g1whether or noI now'known. suspecrerl disciosed. or claimed rvhicn i, ever had' no'; has or ciarms to have agarnstthe other pan1. from rhe begrnrulg of' trme ro tir: effecrive dareof thusAgreemen.:. ansing our of oi-relatedI(r ti:e foljow ns L Ail ciaims described irr- ,rnd all ,maners referred ro m. rhe

Compiarnl. the Cross-Compiainr. and rhc ActiorL anci arry and all clarms or causes of action. whether or nor fiow [ssq7-11 disciosed or asserrd. which might have been assened rn the Acriorrarising out of' based on' or in any^wa)' reiated ro the EAA. the RemarkeringAe-reenrenrs. rhe Leases-rhe Equipmeni, rhe defanl:rrioncraims.andror rhe b. Ilispurel

,A.ny represgntations. siaremenis or agreementsinarir o; acnons

raken by eirher of the parries with respect to any of the maTtersciescribedor refered ro rri subparagaph a airove. 7' tJihsr uarr as provided ur this Agteement. the onir, :i(ce'tlons ro tire

genelal and mutual reieases ser forth above are any nrefarence or- other bankruprc' related acrioss filed againsr TCC rn connecdon wirh Leascs originared by TCC and then soid ro Kev. u'here Key acualll: received the ieaseor other payments alieged to constirureprefrlrences lthe ''Exciucied Preference Acrions"). &" Excluded Preference Acnons: (i) Broadband ffice. Jnt. 1,. TCC dbc Exu.eme tien+,orlt: -4.sof tire oate of this Asreement. Ihe panles arE ar,\'afe Oi two

Credh Corporatton fileC in the ljnired SraiesBan|rupl;], Cour., for the Drsrrcl of L)elarvare. CaseNo' 0l-1710 (OMS). oateciDeccmber23. 2003. anri Fansferrerl lrrne r1 on l00r ro rhe

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TJnired staresDisrricrcourr for lhe Disrricrof Deiaware. caseNo. 04-cV_407 (Gtr4s). alleerns rwo preference pawnants roralirrg $771.g75-07: and (ii) FSINET LiquiAunng LLC v. rcc. friedrn therinrtedsiares

Banjlnrntcy coun. for the southa-n Distict of New YorL caseNo. 0l-1j:i3 (REG).darec Mav 28-1003^ allegrng preference five paymeo* rouiing$7,:i3i.5(ii.00. bKe1'agrees providereasonable to assistance TCC in rrseifonsto rc rlus assisunce

obtain a drsmissalof the Fxcluciedhefersnce Actronsrpro'id.eci ho*svg1. thar doesnot and will not inciude the voiunrarv palmef,x.by Key ro TCC or anv

other pa:r_v-. cosrs of

or aTrornevs' incurredby TCtl or anyorherrhird parB in ,iefense fses of the Excludedpreference Acrions. TCC expresslyresenes the righr ro pursue ciaims agarnstKey for rndemruryand defense costsreiered theseExciuded ro h.ei-erence Actic,ns.By aggeeure allow.TCC ro make to this reselwarionKey doesnot aErsethat TCC has ary nght Io pursuesuch ciaims and.on tbe corrar)'. Key hei'etry deniEs rhat TCC hassuchnght andsuchclaims. 3' Each parrr' un
avai'iabie ir undersecrioni542 of theCivilCocie California ro of wh:chprovides: "A generalreieasedoesnot enend rc clairns*.hich the credirordoesnor k.rtow' ilspecl to exisr in his favor ar the time of executing or re,hrch the release. rf icrrown him must havematerialiyaffected serriemcnr by his u,ith the debror..' 4' Eachparrl' represenrc warrantscharas of rhe dareof cxecutlon and of rhis

Agreemeil it hasthe sole right arrdauthontvr0 execure rhisAgreaneil on irs behalf.andrharii bas nor soid. assigned, u-ansferred. conveyed.. otherrvise or ciisposed any ciaim or demand of relating anJio righr sun-endered bt,vimreof rhisAgleemerrr. E. Wirh the exceprion rhe Exciuded preference of Acrionsreferred in Section ro D

above.eachpany agrees oev61 coonmence. 16, assrst rny r*,ay. iri prosecutE caus:.Derrnlr or oI adviseIo be commenced pros:cuied or against ofnerDarl-y acTlon proceedine the any or based
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upon any clailns. demands. carses of actiori- obligations. damages- or irabilitres of anv narure whatsoever-ulhelher or nol riow [neq'1t suspected. discirrsC or ciaimsd- which ir evsi had-now has-or hereaftermav have or claim ro irave again$ the other pan-v.from the bennnrng of rime ro the effective date of this Agreement. pertairung rc rhe mallers idendfied in Secrion D. atrove Ir . rs rhe express intention of the parnes ro exciude from ilre provisions oi rhis Secnon E" rhe Excluded Preference Acrions described in SectionD above. F. Each pary egrees thal if ir hereafter coulmences.joins in, or in any manner seeks

relief through any suir arising our od based upon. or rt:laring ro any of the claims released. hereunder. or in any manner assefls against the orher parly an-"., claims releasedhereunder.riren ir wil) pay ro the other parry. in addinon to any and all other damagEs causedrhcrebl-.al1anorneys' fees incurreO in defendrng or orher-wise responding to said suit or ciaim. G' The fact rhat the pirnies are entering inro *us Agreeilerir shall nor al any nme or

place be taken or coustrued ro be an admrssion on the parr of either-of tne pames rha: an1,ciarm made in the Action existed or exists. and each part-vexprcssiy denies tire exisrence arid r-ahciit1, of ar:.v" such c'laim. H. Except as othatrise provided hcrcin. each parry firliy uncierstands rhar if rhe facrs

wirh respeci to whigh this Agreement is executed'befound hereafter ro be differenr from rhe facrs no'* beltevod to be rrue. it expressil'acceptsand assumes risk of such possibie cirfference the in facrs and agrees that this Agreement shall be and remain effecrjve norwithsrandrnq such difference in facrs. I. Thrs Agrecrnent strall be binding upon and sirall inure to rhe benefil of all rhe

urdrviduals and entities listed rn the intoducrory parasaph of thrs Agreement and coliecnveiy referred to ll:roushout this Agreenrcnt as Key. TCC. and lhe pan:es.

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Thrs {greemsnr i-s rn iieu of, supersedes.md extinguishes a.Llottei agrecmenrc. negoriarrons. undersundings-and represnrations which niav have ireen macie or enrerecinro by anci berweerl the Darres. includrng th_ Senicmenl Mernorandum benvsen rhe narjes dared -August2.1.and consururesthe ennte asreernerlr beweer: the pames. It rs e:presslv unrierslooci and agreed thar this Agreemenr [ray noi be alrered-amendc. modified or orhe:u,rsechangcd ul any respect or panicular wharst)ever exce't by a uniring duly executed by an aurhonzed rcpressnraiive of rhe parries. I{ rhe parnes shali each bear their owrr at..rrneys' fees and cosrs arising and impremefialion of thrs Agreerneni.

-A'crron and the negoriation. execurion L. M-

our of the

This Agreemenr shail be soverned by Caiifrrrnralau

Ttus Agreement shalJ be inrerpreted and consnued neuu-ali_r.rnaccord.arrce wrrh the plain meaning of rhe i*goug. conrainedherein and shall nor be presumprive)r.36nsa.,r.4 agarnsrthe drafters. This Agreemenr mey be execured in counterparu. each cf v/hjgh shall be o.eemed to be an ongrnal' but 5u66 counterparts rogerher shan constirureone and the sarneinsmrmeflr. o' Each party ackno"r"ledgesand declares rhru ir has rea
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obiigarions with respecr rhe execution this Aereeme,:: and to of , A.
I9ITNS.

s;HgRero*E, the partiesexecule this Ag'eementand agreero be bounobr iis

KEV CONPORATE CAFITAI- trNc.

Tecnnolcrcv Cce olr CoRponq.Tlox
I}.,.

Kara: L. Larson In. Director. Global Vendoi Serv'ices

Lawrence Ciarir M. lts: Prusrdent

APFR.ovAr- To F'onm: As Eachof the undersiged afto:-neys states tlrat the rr;rrns of the foregoi:rg AFeern:nr have beenreadby and expiained his cliems. to

BeN;*rvuF RrlEr triCooLE\'Gouw.A.RD i-LF Anornsysfor Key CorporarrCapiralinc

BRticE PtoNrxowsrr C.. Rorent IVIAJESK!, Koun & Bexruer Attoineys Technoiogy-' for CredirCorpoianon

soob50 rj,'SF IikoCil.DCC

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of to and obtigations with respect the execurion this Agreeurear. A.
tenns. INc. KpY ConponATE CAPTTAE

this Agreementand agreeto be bound b],itt WmREF0RE, the parties execute

Ey'
KarenL. I-arson

(-Ig,IJTO.-\O
Lawreo.ce Ciark M. Its: Presidsnt

Its: Directoi, GlobaiVEndorSeffices

APPROVAT.AS TO FONTAI

terms of the foregoingAgreement states altorneys fhat th,e have Eachof the untiersigned to beEnreadby and explained his oiients.

BBILIAivITFT- Rn nv K

Coor.rv Gonw*nn I-LF Capital for inc. Attornevs Key Corporate

,{ tA K ,/l't" Bnucr C. Proxrrcowsrc R.orens" Kom.{ SnxTiry & Me.rp,src,
Attomey; for Technoiogl'CreditCorporation

906650v5/SF j{kq05:.DoC

Case 5:08-cv-03605-PVT
Novsmber 1004 4. Mr. Pelry Banh Conrolle:
SNS Netsolve

Document 4

Filed 09/03/2008

Page 16 of 17

9500Arnbergl Bouievard en .A.u-stin. Texas 78129 DearMr. Banh: As discussed wirh SharonRuiz. in connecdon wirtr the seulementof a lawsurrberween Kev Corporare Capiral("Key") and l'echnologyCredirCorporarion (..TCC-).f.v *Ji#';;; agreedthat the escrowaccountSNS Netsolvecurrenrlyiroids f'or them. roratingapproximarel;577.500. shallbe immediarcly pa:d ro Key. Piease senda checkfor the enrjreamotrnl currenrlv th. escror&'ro c/o Jonathan Key Braun.Esq,.tiel,Equrpmenr Fnance. t000 sourf ;;;;i; r Bivd.. Supenor. Colorario80027. ln addition-all funre ieasepayments owedin corurecrion rsith any eq,.tpmenr lease ongrnaieci b' TCC and larcrsoid to Kev shouidbe directed Mr. Brau: art-neaboveadciress. ro Please Mr- Braunal {720)304-i247.or Key'soursicie call coursei, BenRile-v (-1ti) 6sr-l0gl. ar should you have anv questions. Thank you for your copperatioa and pro*p, aTlaluonro *rls mafier.

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Very truiy yours.

Fi.aren i-arson L. Key Equipmenr Furance Direcror.GlobalVendorSeivices

Lawrence IvI. Ciaril Techn,rlogyCredri Corporarion Presidr:il

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9 0 o n i 0\ ' t i 5 : DOC ,ri'tqtJ5I,

Case 5:08-cv-03605-PVT Novenber 4,2004 ivfr.PerryBar+tr Conkoller
SNSNetsolve 9500Ambergiecr Boulevard Austi& Tacas 78i29 DearMr, Bafch:

Document 4

Filed 09/03/2008

Page 17 of 17

As discussed with SharonRuiz, in connectioE with tlrc sretti.emmt a iawsuit betwenIiev of CorporateCapital fKq/') and TecbnologyCredit Corporation("TCC"), I(ey aad TCC have agreedtbat the escrow accountSNS Netsolve cu::ently hoids for tirem, toraling approximately $77,500,sball bo immo,iiatoly paid to Key. Please senda oheokfor the effire r*"*t currently in the escrowto Key c/o JonatharBrauu,Esq.,Key Equipment Finance,1000 SouthMcCaslin Bivd., Superior. Coiorado 8A027. h addition" att funrre lease paym.enbowedin connection with any equipmentleaseorigitated by TCC and ia.brsoid io Key shor:Id directed IvLr. be to Braun atthe aboveaddress. Pleasecall Mr. Braun at UZA) 304-i247, or Key's ornside counso!Bea Riley at (415) 693-2092, shouid you have any questio::s. TDankyou foi your coouerationand pmmpt attenrion to tjris
IIrafter,

Vs6rtuh,, yours,

Kare.n Lamon L. KeyEquipmentFinance Director. Giobai VendorServices

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Larvre,nce Cisrk M.

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T echnoiogy Credit Cor-ooration Prssident

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906650!6/SF jfiq05l-DOC