**Exhibit 10.1**

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**LOANAGREEMENT**

 

 

Thisloan agreement dated January 12, 2000 is by and between Sento Corporation,(Borrower), and Wyoming Industrial Development Corporation, (WIDC).

 

**Section1.0**

**BORROWER,AGREEMENT TO LEND AND BASIC TERMS**

# **Type of Borrower**

 
| **1.1** | Borrower is a  corporation, incorporated under the laws of the State of Utah. |
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## ** **

## **Typeof Loan**

 
| **1.2** | Subject to the terms and conditions of this Loan  Agreement, WIDC agrees to lend to Borrower and Borrower agrees to borrow from  WIDC as follows (the “Loan”): The Loan shall be evidenced by a promissory  note in the form attached hereto as Exhibit “A” (the “Note”). All the  provisions of the Loan Agreement, and any documents and instruments delivered  in connection herewith, shall apply with equal force and effect to the  promissory note, hereafter executed by Borrower which, in whole or in part,  represent a renewal, extension for any period, increase in amount,  substitution or rearrangement of any part of the Loan originally evidenced by  the Note. |
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### **Loan Advances Plus Principal Plus Interest**

 
| **1.3** | The loan shall be  repaid in principal and interest payments under the note The Loan will be a  maximum of Nine Hundred Ninety-Nine Thousand, Nine Hundred Dollars ($999,900)  (the “Loan Amount”). The Loan proceeds shall be used to purchase certain  equipment and goods for use in the Borrower’s business. The Lender will make  Loan advances directly to the vendors upon presentation to the Lender of a  valid invoice. The total amount of advances will not exceed $999,900 and no  further Loan advances will be made after June 23, 2000. The Loan Amount,  together with interest, shall be payable in fifty-seven (57) equal monthly  installments. Once the final disbursement of the Loan Amount is made by the  Lender, the Lender will send the Borrower a letter stating the following: (i)  the total sum of the Loan Amount advanced, (ii) the amount of the monthly  payment due (principal and interest), (iii) the date that the first monthly  installment payment is due, to be set approximately ninety (90) days from  final disbursement, and (iv) the day of the month that each monthly payment  thereafter will be due. On the date of the first installment payment, the  Borrower will pay all accrued interest current to that date, and thereafter  will make the monthly payments on the Note as set forth in the Lender’s  letter. |
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##### **PrincipalRepayment**

 
| **1.4** | As long as the Borrower  is not in default under this loan agreement, Borrower shall have the right to  make prepayments on the loan without premium or penalty of any kind. All  prepayments shall be applied first to accrued interest and then to principal. |
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**Interest**

 
| **1.5** | The interest rate shall  be at a blended rate of approximately 8.5% on the unpaid principal balance.  The guaranteed portion shall be calculated on the official fixed rate of the  Wyoming Retirement System for FSA. The non guaranteed portion shall be  calculated at a fixed rate of 9.50% Interest shall be based upon a year of  365 days and computed on actual number of days elapsed. |
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##### **Loan**

 
| **1.6** | WIDC is requiring an origination  fee of $9,990.00. Additional fees will consist of a 2% USDA Rural Development  fee on the guaranteed portion of the Loan in the amount of $15,998.40, and  lender’s attorney fees for loan documentation. |
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##### ** **

##### **Guaranties**

 
| **1.7** | As a condition to  Lender making the Loan on the terms and conditions set forth herein, and for  good and valuable consideration which consideration includes benefits  accruing to the guarantors as a result of this agreement between Lender and  Borrower, Sento Technical Services Corporation, Sento Consulting Corp, and  Sento Training Corp must unconditionally, jointly, and severally guarantee to  Lender that Borrower will fully and promptly and faithfully perform, pay and  discharge all its present and future obligations and covenants under this  agreement including, without limitation, the Note and Security Agreement. |
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##### ** **

##### **QuickRatio**

 
| **1.8** | Borrower shall maintain  a quick ratio of Quick Assets to Current Liabilities minus Deferred Revenue  of at least .75 to 1.0. |
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##### **Debt/NetWorth Ratio**

 
| **1.9** | A ratio of Total  Liabilities less Subordinated Debt less Deferred Revenue to Tangible Net  Worth of not more that 3.00 to 1.00. |
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**Section2.0                            THECOLLATERAL**

##### ** **

Ascollateral, WIDC shall receive a First Lien position on Borrower’s propertydescribed in Schedule “A” to the Security Agreement given in connectionherewith (which Security Agreement is, by this reference incorporated herein),and a second lien position on the Borrower’s property described in Schedule “B”to the Security Agreement.

**Section3.0                            BORROWER REPRESENTATIONSAND WARRANTIES**

 

##### **Corporate Existence**

 
| **3.1** | Borrower warrants that  it is a corporation, duly organized, validly existing and in good standing  under the laws of the jurisdiction of their incorporation, and is duly  licensed or qualified within the State of Wyoming. |
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##### **Authority to Borrow**

 
| **3.2** | Borrower is duly  authorized to execute and deliver this Loan Agreement and all documents and  instruments in connection herewith. Borrower is and will continue to be duly  authorized to borrow hereunder and to perform all of the other terms and  provisions of this Loan Agreement. |
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**Litigationand Proceedings**

 
| **3.3** | There is no material  litigation or governmental proceeding pending or threatened against Borrower  or a Guarantor, which, if adversely determined, could have a material adverse  effect on the financial condition of Borrower or any Guarantor. |
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**Pensionor Retirement Plans**

 
| **3.4** | Borrower is in  compliance with all provisions of the Employee Retirement Income Act of 1974,  as amended, (ERISA), including but not limited to the provisions related to  minimum funding requirements for an employee pension or other benefit plan  maintained by Borrower which is covered by ERISA. |
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##### **Title and Lien**

 
| **3.5** | Borrower has good and  marketable title to each of the properties and assets reflected on its  financial statements except as to those that have been since sold or  otherwise disclosed to WIDC in writing. No assets or revenues of Borrower are  subject to any lien except as required or permitted by this Loan Agreement,  disclosed in the financial statements or otherwise previously disclosed to  WIDC in writing. |
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##### **No Adverse Change**

 
| **3.6** | The Borrower covenants  that there has been neither any material adverse change in Borrower’s  financial condition nor any material adverse change in Borrower, for any  reason, since December 23, 1999. |
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**Section 4.0                 AFFIRMATIVE COVENANTS**

 

Until the Loans and all obligations have beenperformed by Borrower, Borrower agrees to do all of the following unless WIDCshall otherwise Consent in writing. If Borrower is a corporation and hassubsidiaries, Borrower also shall cause each of its subsidiaries to comply withthe following: Lender will not unduly withhold concurrence.

 

##### **Inspection Rights**

 
| **4.1** | Borrower will permit  WIDC, at any reasonable time, to examine and make copies of the records and  books of account of Borrower, to visit the properties of Borrower and to  discuss the affairs, finances and accounts of Borrower, any of its officers  or directors. |
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##### **Taxes**

 
| **4.2** | Borrower will timely  pay all taxes, assessments, and governmental charges assessed against it or  any of its properties or income prior to the date on which penalties will  attach. |
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**Insurance**

 
| **4.3** | Borrower will keep in  force with responsible companies, policies of all such risk that is usually  carried by similar businesses, including without limitation, liabilities on  account of damage to persons or property and applicable workers compensation  insurance, in amounts, form and content and through an insurer satisfactory  to WIDC. |
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**Financial Information**

 
| **4.4** | Receipt of annual CPA  audited balance sheet and profit and loss financial statements on Borrower no  later than 120 days from the Borrower’s year-end. In addition, Borrower shall  also deliver compiled quarterly in-house prepared balance sheet and profit  and loss statements on the Borrower no later than 45 days after each quarter  ending. |
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**Other Promises**

 
| **4.5** | Borrower shall comply  with all terms, conditions, and promises of the Note and the Security  Agreement, which agreements are, by this reference incorporated herein. |
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**Corporate Existence & Standing**

 
| **4.6** | Borrower shall remain a  corporation duly incorporated, validly existing, and in good standing under  the law of the State of Utah, with all requisite authority to conduct its  business in Wyoming. |
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**5.0                                NEGATIVECOVENANTS**

 

Untilthe Loans and all obligations have been performed by Borrower, Borrower agreesto do all of the following unless WIDC shall otherwise consent in writing. IfBorrower is a corporation and has subsidiaries, Borrower also shall cause each ofits subsidiaries to comply with the following:

 

**Dividends; Purchase**

 
| **5.1** | Borrower will not  declare or pay any dividend on any shares of any class of its capital stock  unless a profit was made during the fiscal year and all debts owed to WIDC or  USDA Rural Development are paid to a current status. |
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**Liquidation; Merger; Sale of Assets**

 
| **5.2** | Borrower will not  acquire, liquidate, dissolve, or enter into any merger; consolidation; joint  venture; partnership or other combination; or sell (except for sales of goods  in the ordinary course of business); lease or dispose of any collateral or a  substantial portion of its business or assets. In addition, the Borrower is  to provide the lender a fully executed SEC Form 4, when applicable. |
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**Loans**

 
| **5.3** | Borrower will not make  any loans or advance to its officers, directors, shareholders, or outside  parties in any year. |
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**Guaranties:  Indebtedness; Fixed Asset Purchases**

 
| **5.4** | Borrower will not  create, incur, assume, or permit to exist any indebtedness, except the  obligations created hereby. Borrower will not assume, guaranty, endorse, or  become directly or contingently liable for, or obligated to purchase, pay, or  provide funds for payment of any obligations or indebtedness over a total  aggregate amount of $1,000,000 annually, except the obligations created  within the terms of this Loan Agreement without prior written consent of  Lender. All existing debt agreements acceptable. Existing line of credit at  Silicon Valley Bank is considered allowable debt. Advances on this line of  credit do not require prior written approval. Capital Leases do not require  prior written approval. The Borrower will also execute such additional  security agreements and financing statements as the Lender requires in order  to create and prefect a lien against additional capital items. Convertible  Debentures are not considered debt under this loan agreement. |
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**Officer Wages**

 
| **5.5** | Borrower will not  provide, make, or create additional wages to officers, shareholders, or  outside parties, other than their normal annual wages,unless Borrower is  profitable and all indebtedness is in current standing. |
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**Key Personnel**

 
| **5.6** | Borrower shall notify  WIDC of any changes in executive personnel or key management immediately. |
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**Officers Compensation**

 
| **5.6** | There will be no increase  in officers’ compensation or payment of dividends without prior written  approval unless all payments are current And all loan agreement covenants are  met. |
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In witness whereof, theparties hereto have executed this Loan Agreement as of the day first writtenabove.

 

 

 

 
|   |   | Wyoming Industrial  Development Corporation |
|--------|--------|---------------------------------------------|
|   |   |                                        |
|   |   | By:                                         |
|   |   | /s/ Diane Johnston                          |
|   |   |                                        |
|   |   |                                        |
|   |   | Borrower:  Sento Corporation           |
|   |   |                                        |
|   |   |                                        |
|   |   | By:                                         |
|   |   |                                        |
|   |   | /s/ Stanley J. Cutler                       |
|   |   |                                        |
|   |   | Attest:                                     |
|   |   |                                        |
|   |   | /s/ Brian W.  Braithwaite                   |