Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.2    
    

 
 

AMENDED AND RESTATED
  1998 LONG-TERM INCENTIVE
  AND
  STOCK OPTION PLAN    
    

        1.    Purpose of the Plan.    This Plan shall be known as the "Amended and Restated 1998 Long-Term
Incentive and Stock Option Plan" and is hereinafter referred to as the "Plan." The purpose of the Plan is to aid in maintaining and developing personnel capable of assuring the future success of
RightNow Technologies, Inc., a Delaware corporation (the "Company"), to offer such personnel additional incentives to put forth maximum efforts for the success of the business, and to afford
them an opportunity to acquire a proprietary interest in the Company through stock options as provided herein. Options granted under this Plan may be either incentive stock options ("Incentive Stock
Options") or options, which do not qualify as Incentive Stock Options. 

        2.    Stock Subject to Plan.    Subject to the provisions of Section 12 hereof, the stock to be subject to
options under the Plan shall be the Company's authorized common stock, $0.001 par value per share (the "Common Shares"). Such shares may be either authorized but unissued shares, or issued shares,
which have been reacquired by the Company. Subject to adjustment as provided in Section 12 hereof, the maximum number of shares on which options may be exercised shall be 12,305,687 shares. If
an option under the Plan expires, or for any reason is terminated or unexercised with respect to any shares, such shares shall again be available for options thereafter granted during the term of the
Plan. 

        3.    Administration of Plan.    (a) The Plan shall be administered by the Board of Directors of the Company or
a committee thereof. The members of any such committee shall be appointed by and serve at the pleasure of the Board of Directors and shall include only "non-employee directors" within the
meaning of Rule 16b-3 promulgated under the Securities and Exchange Act of 1934. (The group administering the Plan shall hereinafter be referred to as the "Committee.") In
addition, to the extent required by Section 162(m) of the Internal Revenue Code of 1986, as amended (such statute, as it may be amended from time to time and all proposed temporary or final
Treasury Regulations promulgated thereunder shall be referred to as the "Code"), at all times following the 1998 Annual Meeting of Shareholders of the Company, all members of the Committee shall be
"outside directors" within the meaning of Section 162(m) of the Code. 

        (b)   The
Committee shall have plenary authority in its discretion, but subject to the express provisions of the Plan: (i) to determine the purchase price of the Common
Stock covered by each option, (ii) to determine the employees to whom and the time or times at which such options shall be granted and the number of shares to be subject to each,
(iii) to determine the terms of exercise of each option, (iv) to accelerate the time at which all or any part of an option may be exercised, (v) to amend or modify the terms of
any option or with the consent of the optionee, (vi) to interpret the Plan, (vii) to prescribe, amend, and rescind rules and regulations relating to the Plan, (viii) to determine
the terms and provisions of each option agreement under the Plan (which agreements need not be identical), including the designation of those options intended to be Incentive Stock Options, and
(ix) to make all other determinations necessary or advisable for the administration of the Plan, subject to the exclusive authority of the Board of Directors under Section 13 herein to
amend or terminate the Plan. The Committee's determinations on the foregoing matters, unless otherwise disapproved by the Board of Directors of the Company, shall be final and conclusive. 

        (c)   The
Committee shall select one of its members as its Chair and shall hold its meetings at such times and places as it may determine. A majority of its members shall
constitute a quorum. All determinations of the Committee shall be made by not less than a majority of its members. Any decision or determination reduced to writing and signed by all of the members of
the Committee shall 

Page 1

 

be
fully effective as if it had been made by a majority vote at a meeting duly called and held. The grant of an option shall be effective only if a written agreement shall have been duly executed and
delivered by and on behalf of the Company following such grant. The Committee may appoint a Secretary and may make such rules and regulations for the conduct of its business as it shall deem
advisable. 

        4.    Eligibility.    Incentive Stock Options may only be granted under this Plan to any full or part-time
employee (which term as used herein includes, but is not limited to, officers and directors who are also employees) of the Company and of its present and future subsidiary corporations within the
meaning of Section 424(f) of the Code (hereinafter called "subsidiaries"). Full or part-time employees, consultants, or independent contractors to the Company or one of its
subsidiaries shall be eligible to receive options which do not qualify as Incentive Stock Options. In determining the persons to whom options shall be granted and the number of shares subject to each,
the Committee may take into account the nature of services rendered by the respective employees or consultants, their present and potential contributions to the success of the Company and such other
factors as the Committee in its discretion shall deem relevant. A person who has been granted an option under this Plan may be granted additional options under the Plan if the Committee shall so
determine; provided, however, that for Incentive Stock Options, to the extent the aggregate fair market value (determined at the time the Incentive Stock Option is granted) of the Common Shares with
respect to which all Incentive Stock Options are exercisable for the first time by an employee during any calendar year (under all plans described in subsection (d) of Section 422 of the
Code of his employer corporation and its parent and subsidiary corporations) exceeds $100,000, such options shall be treated as options which do not qualify as Incentive Stock Options. Nothing in the
Plan or in any agreement thereunder shall confer on any employee any right to continue in the employ of the Company or any of its subsidiaries or affect, in any way, the right of the Company or any of
its subsidiaries to terminate his or her employment at any time. 

        5.    Price.    The option price for all Incentive Stock Options granted under the Plan shall be determined by the
Committee but shall not be less than 100% of the fair market value of the Common Shares at the date of grant of such option. The option price for options granted under the Plan which do not qualify as
Incentive Stock Options shall also be determined by the Committee, but shall not be less than 85% of the fair market value of the Common Shares at the of grant of such option. For purposes of the
preceding sentence and for all other valuation purposes under the Plan, the fair market value of the Common Shares shall be as reasonably determined by the Committee. If on the date of grant of any
option hereunder the Common Shares are not traded on an established securities market, the Committee shall make a good faith attempt to satisfy the requirements of this Section 5 and in
connection therewith shall take such action as it deems necessary or advisable. 

        6.    Term.    Each option and all rights and obligations thereunder shall expire on the date determined by the
Committee and specified in the option agreement. The Committee shall be under no duty to provide terms of like duration for options granted under the Plan, but the term of an option may not extend
more than ten (10) years from the date of grant of such option. 

        7.    Exercise of Option.    (a) The Committee shall have full and complete authority to determine whether an
option will be exercisable in full at any time or from time to time during the term thereof, or to provide for the exercise thereof in such installments, upon the occurrence of such events (such as
termination of employment for any reason) and at such times during the term of the option as the Committee may determine and specify in the option agreement; provided, however, that; (1) an
optionee who is an employee shall have the right to exercise at a rate of at least 20% per year over five years from the date the option is granted; (2) if an optionee's employment with the
Company is terminated other than by death or disability or for cause, the optionee may exercise any option granted under the Plan, to the extent the optionee was entitled to exercise the option at the
date of termination, for a period of at least 30 days after the date of termination or until the term of the option has expired, whichever date is earlier (any options not so exercised shall
terminate); (3) if an 

Page 2

 

optionee
shall die while employed by the Company, the optionee's estate or any person who acquired the right to exercise the option by will or the laws of descent and distribution may exercise the
option until the earlier of six months from the optionee's death or the expiration date of such option, but only to the extent the optionee was entitled to exercise such option at the time of death;
(4) if an optionee's employment shall terminate as a result of disability, then the option may be exercised by the optionee until the earlier of six months after the date of termination due to
disability or the expiration date of the option, but only to the extent the optionee was entitled to exercise such option at the time of the termination; and (5) if the employment of the
optionee is terminated by the Company for cause, then the option granted to the optionee under the Plan shall terminate 30 days after the date of termination, but only to the extent the
optionee was entitled to exercise such option at the time of termination. 

        (b)   The
exercise of any option granted hereunder shall only be effective at such time that the sale of Common Shares pursuant to such exercise will not violate any state or
federal securities or other laws. 

        (c)   An
optionee electing to exercise an option shall give written notice to the Company of such election and of the number of shares subject to such exercise. The full
purchase price of such shares shall be tendered with such notice of exercise. Payment shall be made to the Company in cash (including bank check, certified check, personal check, or money order), or,
at the discretion of the Committee and as specified by the Committee, (i) by delivering certificates for the Company's Common Shares already owned by the optionee having a fair market value as
of the date of grant equal to the full purchase price of the shares, or (ii) by delivering the optionee's promissory notes, which shall provide for interest at a rate not less than the minimum
rate required to avoid the imputation of income, original issue discount, or below-market-rate loan pursuant to Sections 483, 1274, or 7872 of the Code or any successor provisions thereto,
or (iii) a combination of cash, the optionee's promissory note and such shares. The fair market value of such tendered shares shall be determined as provided in Section 5 herein. The
optionee's promissory note shall be a full recourse liability of the optionee and may, at the discretion of the Committee, be secured by a pledge of the shares being purchased. Until such person has
been issued the shares subject to such exercise, he or she shall possess no rights as a shareholder with respect to such shares. 

        8.    Income Tax Withholding and Tax Bonuses.    In order to comply with all applicable federal or state income tax
laws or regulations, the Company may take such action as it deems appropriate to ensure
that all applicable federal or state payroll, withholding, income, or other taxes, which are the sole and absolute responsibility of an optionee under the Plan, are withheld or collected from such
optionee. In order to assist an optionee in paying all federal and state taxes to be withheld or collected upon exercise of an option which does not qualify as an Incentive Stock Option hereunder, the
Committee, in its absolute discretion and subject to such additional terms and conditions as it may adopt, shall permit the optionee to satisfy such tax obligations by (i) electing to have the
Company withhold a portion of the shares otherwise to be delivered upon exercise of such option with a fair market value, determined in accordance with Section 5 herein, equal to such taxes or
(ii) delivering to the Company Common Shares other than the shares issuable upon exercise of such option with a fair market value, determined in accordance with Section 5, equal to such
taxes. 

        9.    Additional Restrictions.    The Committee shall have full and complete authority to determine whether all or any
part of the Common Shares of the Company acquired upon exercise of any of the options granted under the Plan shall be subject to restrictions on the transferability thereof or any other restrictions
affecting in any manner the optionee's rights with respect thereto, but any such restriction shall be contained in the agreement relating to such options. 

        10.    Ten Percent Shareholder Rule.    Notwithstanding any other provision in the Plan, if at the time an option is
otherwise to be granted pursuant to the Plan the optionee owns directly or indirectly (within the meaning of Section 424(d) of the Code) Common Shares of the Company possessing more 

Page 3

 

than
ten percent (10%) of the total combined voting power of all classes of stock of the Company or its parent or subsidiary corporations, if any (within the meaning of Section 422(b)(6) of the
Code), then any Incentive Stock Option to be granted to such optionee pursuant to the Plan shall satisfy the requirements of Section 422(c)(5) of the Code, any such Incentive Stock Option by
its terms shall not be exercisable after the expiration of five (5) years from the date such option is granted and any such option granted under the Plan shall have an option exercise price not
less than 110% of the fair market value of the Common Shares of the Company determined as described above. 

        11.    Non-Transferability.    No option granted under the Plan shall be transferable by an optionee,
otherwise than by will or the laws of descent or distribution. Except as otherwise provided in an option agreement, during the lifetime of an optionee, the option shall be exercisable only by such
optionee. 

        12.    Dilution or Other Adjustments.    If there shall be any change in the Common Shares through merger,
consolidation, combination, reorganization, recapitalization, reclassification, distribution, dividend in the form of stock (of whatever amount), stock split, reverse stock split or other change in
the corporate structure, appropriate adjustments in the Plan and outstanding options shall be made by the Committee. In the event of any such changes, adjustments shall include, where appropriate,
changes in the aggregate number of shares subject to the Plan, the number of shares and the price per share subject to outstanding options and the amount payable upon exercise of outstanding options,
in order to prevent dilution or enlargement of option rights. 

        13.    Amendment or Discontinuance of Plan.    The Board of Directors may amend or discontinue the Plan at any time.
Subject to the provisions of Section 13 no amendment of the Plan, however, shall without shareholder approval: (i) increase the maximum number of shares under the Plan as provided in
Section 2 herein, (ii) decrease the minimum price provided in Section 5 herein, (iii) extend the maximum term under Section 6, or (iv) modify the eligibility
requirements for participation in the Plan. The Board of Directors shall not alter or impair any option theretofore granted under the Plan without the consent of the holder of the option. 

        14.    Time of Granting.    Nothing contained in the Plan or in any resolution adopted or to be adopted by the Board
of Directors or by the shareholders of the Company, and no action taken by the Committee or the Board of Directors (other than the execution and delivery of an option agreement), shall constitute the
granting of an option hereunder. 

        15.    Effective Date and Termination of the Plan.    (a) The Plan was approved by the Board of Directors on
February 20, 1998, and shall be approved by the shareholders of the Company within twelve (12) months thereof. 

        (b)   Unless
the Plan shall have been discontinued as provided in Section 13 hereof, the Plan shall terminate February 20, 2008. No option may be granted after
such termination, but termination of the Plan shall not, without the consent of the optionee, alter or impair any rights or obligations under any option theretofore granted. 

        16.    Financial Statements.    At least annually, the Company shall provide a copy of its annual financial statements
to all optionees and all persons owning common shares as a result of the exercise of an option under the Plan. 

        17.    Limitation on Number of Shares.    At no time shall the total number of securities issuable upon exercise of
all outstanding options and the total number of shares provided for under any stock bonus of similar plan or agreement of the Company exceed 30% of the Company's Common Shares that are outstanding at
the time the calculation is made. Such calculation shall be made in accordance with the conditions and exclusions of California Rule 260.140.45. The 30% limitation set forth above may at any
time be increased if approved by the Board of Directors and by at least two-thirds of the outstanding securities entitled to vote. 

Page 4

QuickLinks

Exhibit 10.2

AMENDED AND RESTATED 1998 LONG-TERM INCENTIVE AND STOCK OPTION PLANQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.5    
    

 
 

LEASE AGREEMENT    
    

THIS
LEASE (this "Lease") is made as of July 10, 2000 by and between Genesis Partners, LLC of Bozeman, Montana, herein referred to as "Landlord", and Right Now
Technologies, Inc., a Montana corporation, of Bozeman, Montana, hereinafter referred to as "Tenant". 

WITNESSETH: 

        1.     Leased Property.    Landlord hereby leases to Tenant the office building located on the real property in
Gallatin County, Montana more particularly described on attached Exhibit A whose address is 40 Enterprise Blvd., Bozeman, Montana, consisting of approximately 29,724 square feet together with
(i) the non-exclusive right of ingress and egress for Tenant and its employees, agents, invitees and contractors between the building and the nearest public streets as depicted on
attached Exhibit B, and (ii) the right to use the parking as depicted on attached Exhibit A for its employees, agents, invitees and contractors in common with others (the
"premises"). Landlord represents and agrees that the parking lot will provide, at all times during the term of this Lease, a parking ratio of not less than 3.5 spaces per 1000 square feet of rentable
square footage in buildings whose tenants are or will be using the parking lot. 

        2.     Terms of Lease.    The primary term of this Lease shall be for one hundred twenty (120) months commencing
on the day the Temporary Occupancy Permit is obtained from the City of Bozeman, estimated to be approximately 1st day of April, 2001, and ending one hundred twenty (120) months
later, or sooner terminated as herein provided. 

        3.     Option to Extend.    Upon expiration of the primary term of this Lease, Tenant is granted an option to extend
the term of this Lease for one (1) additional one hundred twenty (120) month period, (an "extension term") upon the same terms and conditions as
are included in this Lease, subject, however, to renegotiation of the rent provided in paragraph 4 of this Lease. The primary term and the extension terms will be collectively referred to in
this Lease as the "term." Tenant shall notify Landlord within not less than one hundred twenty (120) days prior to the expiration of the primary term of this Lease or prior to the expiration of
each extension term of Tenant's exercise of its option to extend this Lease, provided that in the circumstances described in paragraph 13, the options to extend the term may be exercised
earlier as provided in paragraph 13, and if the option to extend is exercised earlier as provided in paragraph 13, nevertheless, the rental payable as provided in paragraph 4
shall be determined at the time and in the manner provided in paragraph 4 and this paragraph 3. During the following sixty (60) day period, Tenant and Landlord shall negotiate and
arrive at an agreement or disagreement of the amount of rent to be paid during the applicable extension term. If Landlord and Tenant agree upon the rent to be paid during the applicable extension
term, Landlord and Tenant shall at the end of the sixty (60) day period enter into a new written lease or an amendment agreement setting forth the amount of rental Tenant shall be required to
pay pursuant paragraph 4 for the applicable extension term and any other additional terms to which Landlord and Tenant have agreed. If Tenant and Landlord fail to agree upon the rent to be paid
during the applicable extension term during the sixty (60) day period of negotiations, a fair market appraisal comparison of comparable properties will be completed by an independent party upon
which the Landlord and Tenant may use to negotiate the amount of rent to be paid during the applicable extension term. If Tenant and Landlord fail to agree upon the rent to be paid during the
applicable extension term during the sixty (60) day period of negotiations, either Landlord or Tenant may, by written notice to the other party given within the ensuing thirty (30) day
period, elect to invoke the arbitration provisions of this Lease to determine the rent Tenant shall be required to pay pursuant to paragraph 4 for the applicable extension term. 

        4.     Rent.    Tenant shall pay as rental for the premises for the first year of the primary term of the Lease the sum
of $401,374.00; computed at the rate of $13.50 per square foot on 29,724 square feet of office space, payable monthly, in advance on the first day of each month (beginning approximately
April 1st, 2001, the estimated date of building occupancy), in installments of $33,477.83 per month. On 

each
anniversary date of this Lease during the primary term, the annual rent shall be adjusted by the percentage increase or decrease in the Base Index as compared to the Comparison Index. The Base
Index shall be the Consumer Price Index for December 2000, and the Comparison Index shall be the Consumer Price Index for each December during
the primary term of this Lease. For purposes of this paragraph 4, "Consumer Price Index means United States Department of Labor, Bureau of Labor Statistics Consumer Price Index, All Urban
Consumers, All Items, 1982-1984=100, or if discontinued, any successor index which, in Landlord's reasonable opinion, is most nearly equivalent to the Consumer Price Index. During any
extension term, the rental shall be determined as provided in paragraph 3. Rent shall be paid without notice or demand by Landlord to Landlord at 895 Technology Blvd, Suite 101, Bozeman,
Montana 59718 or at such other place as Landlord may direct in writing. 

        5.     Covenants.    Tenant hereby acknowledges and agrees: 

        A.    Tenant
is familiar with the premises. Tenant's taking of possession of the premises shall be conclusive evidence that the premises were in good, clean and sanitary
condition, are in all respects satisfactory and acceptable to Tenant, and are in the condition in which Landlord represented the premises to be. 

        B.    Tenant
will keep the premises in a clean and sanitary condition during the term of this Lease. Landlord shall have no obligation to make any alterations or improvements
of any kind in or about the premises other than as set forth in this Lease. Tenant shall repair or replace promptly all damages to the premises due to acts of Tenant, its agents, employees, invitees,
or subtenants, reasonable wear and tear excepted. Tenant also shall not cause any waste to be committed in or about the premises; Tenant will keep the premises free and clear of any and all refuse and
debris; and Tenant agrees to observe all rules and regulations of the County of Gallatin and State of Montana in any way relating to maintenance, use and occupancy of the premises. 

        C.    Tenant
will not use or permit anything to be used upon the premises which is likely to deface or damage the premises, or do anything that will increase the rate of
insurance thereof (unless Tenant first agrees to pay any increased premiums), or permit anything to be done upon the premises or in the areas, sidewalk or streets adjacent to the premises, which will
amount to or create a nuisance. 

        D.    Tenant
shall make no alterations in or additions to the premises without first obtaining Landlord's written consent, which consent will not be unreasonably withheld,
delayed or conditioned. Tenant shall not erect or permit to be erected upon the premises any signs without written consent of Landlord, which consent will not be unreasonable withheld, delayed or
conditioned. 

        E.    Tenant
agrees, with respect to all alterations or improvements to the premises or any part thereof, which Tenant undertakes with written consent of Landlord, that Tenant
shall in all instances save Landlord and the premises forever harmless and free from all damages, loss and liability of every kind and character which may be claimed, asserted or charged, including
liability to adjacent owners or tenants, based upon the acts or negligence of Tenant or its agents, contractors or employees, for any negligence, or for the failure of any of them to observe and
comply with the requirements of the law, including the regulations and the authorities in the City of Bozeman, and Tenant will preserve and hold Landlord and the premises free and clear from all liens
or encumbrances for labor and materials furnished. Any and all alterations, additions, and improvements made by Tenant to or upon the premises (with the exception of furnishings, equipment, and
removable trade fixtures installed by Tenant) shall, upon installation, be deemed attached and part of the premises, provided however, that if prior to termination of this Lease, or within fifteen
(15) days thereafter, Landlord so directs by written notice to Tenant, promptly following said termination of this Lease, Tenant shall remove such of the said additions, improvements, fixtures,
and installations placed upon the demised premises by Tenant as shall by designated in said notice from Landlord, and Tenant shall repair any damages occasioned by such removal. Further, in this
regard, Tenant hereby agrees that it will, during the continuance of this Lease, keep the premises and interior of the premises in good condition and repair, reasonable wear and tear excepted. 

        F.     Tenant
may use and occupy the premises for the purpose of a business office and all activities incidental thereto, including the manufacture of software, and not
otherwise. Tenant shall not use or knowingly permit any part of the premises to by used for any unlawful purposes and shall comply with all applicable laws and regulations of the County of Gallatin,
State of Montana, and the United States of America. 

        G.    Tenant
agrees that Landlord shall not be liable for any damage or injury to persons or property or for the loss of property sustained by Tenant or by anyother person or
persons on the premises due to any act of negligence of Tenant. 

        H.    Tenant
agrees that it will not assign this Lease or sublease any portion of the premises or permit this Lease to transferred by operation of law or otherwise without the
written consent of Landlord, which consent shall not be unreasonably withheld, delayed or conditioned; provided, however, that any merger and reorganization of Tenant for the purpose of incorporating
under another state law shall not be deemed to be an assignment for purposes of this paragraph and shall not require Landlord's consent, or that any merger or change in control of the Tenant shall not
be deemed to be an assignment for the purposes of this paragraph and shall not require Landlord's consent. Tenant shall remain responsible under this Lease for any portion of the premises sublet by
Tenant (even if Landlord approved the subletting), unless Landlord shall agree otherwise. Any subtenant to whom any portion of the property is sublet shall agree to abide by the provisions of this
Lease which are applicable to the sublet portion of the premises, before Landlord will be required to consent to the proposed subleasing of any portion of the premises. 

        I.     Tenant
will permit Landlord, at all reasonable times and after reasonable notice to Tenant at Landlord's sole risk and expense and in a manner that causes the least
practical disruption to Tenant, to enter upon the premises (i) to inspect their condition and to make reasonable and necessary repairs for the protection and preservation of the premises,
(ii) to ascertain whether Tenant has performed its covenants under this Lease, and (iii) to show the premises to persons who may wish to rent the premises after the expiration of the
term of this Lease or to purchase the premises, provided that any showing of the premises to persons who may wish to rent the premises shall be only during the last year of the term of the Lease. 

        J.     Tenant,
upon leaving the premises, shall at its own expense, remove all dirt, rubbish, and refuse and upon failure to do so, Landlord may immediately, without further
notice, do so at Tenant's expense. Tenant shall immediately pay Landlord's expenses upon receipt of a bill for the same from Landlord. 

        6.     Default and Landlord's Rights.    If the premises shall be deserted or vacated, or if proceedings are commenced
against Tenant for the appointment of a trustee or receiver of a substantial portion of Tenant's property, or there shall be a default in payment of any rent for more than five (5) days after
written notice of such default from Landlord, or there shall be a default in the performance or any other covenant, agreement, condition, rule or regulation herein contained, or hereafter established
with Tenant's consent, which shall continue for more than thirty (30) days (or, if the default is not curable within thirty (30) days and if Tenant begins to cure the default within such
thirty (30) day period and diligently pursues curing the same, then for such for additional period as shall be reasonably necessary to cure the default) after Tenant's receipt of written notice
of such default from Landlord, Tenant's rights in this Lease (if Landlord so elects, and such election is reserved) shall thereupon terminate and end without the necessity for any further notice, and
Landlord shall have the right to re-enter and repossess the premises in the manner permitted by law and dispossess or remove there from Tenant or other occupants thereof and their effects
without being liable to any prosecution or action therefore. Landlord may likewise, at Landlord's option, and in addition to any other remedies which Landlord may have upon default, let and relet the
premises in whole or in part, altering, changing or subdividing the same as in its reasonable judgment may accomplish the best rental results, and upon such terms and for such length of time, whether
lesser or greater than the unexpired portion of the term of this Lease, as Landlord may reasonably see fit, and Tenant shall be liable to Landlord for any deficiency between the remaining unpaid
rental and the rental so procured by Landlord for the period of said 

letting
or reletting which is during the remaining term of this Lease and shall further be liable for the reasonable costs of reletting and alterations or changes required to enable Landlord to let
and relet the premises, the deficiency and costs not to exceed, however, the balance of the unpaid rental due from tenant for the remaining term of the Lease. Landlord any institute action for the
whole of any such deficiency immediately upon effecting a letting or reletting and shall not thereafter be precluded from further like action in the event such letting or relettng shall not cover the
entire unexpired portion of the term hereof, or Landlord may monthly, or at such greater intervals as it may see fit, require Tenant to pay said deficiency then existing, and Tenant agrees to pay said
deficiency to Landlord from time to time when called upon by Landlord to do so. Should this Lease not be terminated, Landlord may, notwithstanding such letting or reletting, at any time thereafter
elect to terminate it. Tenant, upon termination as herein provided, will yield quiet and peaceful possession to Landlord, subject to any letting or reletting Landlord has effected of the premises. If
Landlord shall give the notice of termination as herein provided, then, at the expiration of such period, this Lease shall terminate as completely as if that were the date herein fixed for the
expiration of the term of this Lease, and Tenant shall then surrender the premises to Landlord. 

        7.     No Waiver of Breach.    Tenant agrees that no consent, expressed or implied, by Landlord to any breach of
Tenant's covenants or agreements shall be deemed a waiver of any succeeding breach. 

        8.     Notice.    It is agreed that all notices herein required to be given shall be effective upon mailing, postage
prepaid, addressed to Landlord at 895 Technology Blvd, Suite 101 Bozeman, Montana 59718 or addressed to Tenant at 40 Enterprise Blvd, Bozeman, Montana or such other place as either may designate in
writing to the other. In addition, any notice from Landlord to Tenant relating to this Lease or the premises shall be deemed duly served if personally delivered to an officer of Tenant at the
premises. 

        9.     Surrender Upon Termination.    Tenant shall, upon termination of the term, peacefully and quietly surrender the
premises to Landlord in as good condition as it was at the beginning, reasonable use and wear and damage by the elements excepted. Tenant shall remove all of its personal property and trade fixtures
(repairing any damage to the premises such removal causes) so that Landlord can repossess and enjoy the premises not later than noon on the day upon which the term ends, whether upon notice or by
holdover or otherwise. Landlord shall have the right to enforce this covenant by ejectment, for damages, or for breach of any other condition or covenant of this Lease. 

        10.   Peaceful Possession.    Landlord covenants and agrees, at its sole expense, that the exterior, structure, the
roof and the heating, ventilating, air conditioning, electrical, plumbing and all utility systems on or in the premises shall be maintained in good repair and tenantable condition, excepting damage
resulting from neglect or intentional acts of Tenant, its agents, employees, contractors and invitees. So long as Tenant pays the rent and performs the covenants and agreements herein contained,
Tenant shall peacefully and quietly hold the premises for the primary term and any extensions thereof. 

        11.   Time of Essence.    Time is of the essence of this Lease with respect to the performance by Tenant and Landlord
of their obligations hereunder. 

        12.   Attorney's Fees.    In the event any action to enforce any of the terms of this Lease is brought, the
prevailing party shall be entitled to its reasonable attorney's fees as provided in paragraph 25. 

        13.   Liability—Premises.    Landlord shall not be responsible or liable (i) for any personal
injury to Tenant or any other person on the premises, or for injury or damage to personal property or improvements of Tenant or of any third party on the premises unless such injury or damage is
caused by the neglect or omissions of Landlord, its agents or employees; (ii) for injury or damage caused by the neglect or omissions of Tenant or its agents, contractors, invitees or
employees; or (ii) on account of any inconvenience or annoyance or damage caused by fire, explosion, earthquake, flood or other causes beyond the control of Landlord. Tenant will obtain general
liability insurance in an amount of not less than $1,000,000 on which Landlord shall be named as an additional insured. If Tenant shall sublet any portion of the premises, the subtenant shall also
furnish the general liability insurance required of Tenant or be covered under Tenant's policy. 

        In
addition, Tenant will at all times hold Landlord harmless from any claim or damages by reason of any personal injury, property damage, or otherwise, arising from its operation or use
of the premises or any of Tenant's equipment used in connection therewith, provided the claim or damage is not caused by negligence or omission of Landlord, its agents, contractors or employees. 

        Landlord
shall carry, at its sole expense, all risk casualty insurance, covering the premises, in the amount equal to the full replacement cost of the premises. The policy shall be
endorsed so that it may be terminated or amended only upon not less than thirty (30) days prior written notice to Tenant. The policy shall contain no co-insurance clause, a
deductible amount not exceeding $5,000, and the insurance company's consent to the waivers of subrogation set forth in the next sentence. Landlord waives any claims it may have against Tenant and any
rights to grant subrogation rights to others for any loss, damage or claim which is covered by Landlord's insurance. In the event that the premises shall be rendered wholly or partially untenantable
by fire, explosion, earthquake, Act of God, or any other cause beyond the control of Landlord (collectively, the "casualties"), Landlord (i) shall rebuild and restore the premises as soon as
reasonably practicable to the premises' former condition and use but only (A) to the extent of the insurance proceeds Landlord receives, and (B) if the casualties do not occur during the
last two (2) years of the term (and for this purpose the term shall include all extension terms Tenant notifies Landlord it will exercise on or before thirty (30) days after the
occurrence of any of the casualties), or (ii) in circumstances not described in clause (ii) may, at its option, either terminate this Lease by written notice given to Tenant within sixty
(60) days after the casualty or commence to repair the premises within sixty (60) days after the casualty. If Landlord shall elect or be required to repair the premises, the rental
hereunder shall be abated in proportion to the part of the premises that are untenantable, and no rental shall be payable hereunder for the period that said premises shall be wholly untenantable,
provided that in the event any of the casualties is caused by carelessness, negligence or improper conduct of Tenant, or of Tenant's agents, employees, contractors or invitees, the rental shall not be
so abated. 

        All
fixtures or improvements placed on the premises by Tenant, which shall be damaged or destroyed, shall be repaired and replaced by Tenant at its own expense and not at the expense of
Landlord. 

        If
any of the glass or plate glass in the premised shall be damaged or become broken from the inside, Tenant shall replace, at Tenant's own cost and expense, all such glass or plate
glass broken. If the glass is damaged or broken from the outside, Landlord shall replace the same at its own cost and expense. 

        14.   Repairs and Maintenance.    Landlord shall bear the entire expense of all repairs, maintenance, alterations, or
improvements to the basic structure (exterior walls, roof, heating, ventilating, air conditioning, electrical, plumbing and other systems on the premises). Landlord shall, in addition, bear the entire
expense for the repair and maintenance of the parking area, including landscaping and keeping the parking area free of rubbish, ice and snow. Tenant shall pay at its own expense, all repairs,
maintenance, and alterations of Tenant installed fixtures or improvements and utilities. 

        15.   Utilities, Taxes Etc.    Tenant shall pay for all telephone, water/sewer, electricity, natural gas, fire system
monitoring, security systems, and janitorial services used in the operation of the premises. Tenant agrees to pay for replacement of light bulbs. Landlord shall pay for all real property taxes and
assessments levied and assessed against the premises and for snow removal and lawn maintenance. 

        16.   No Smoking Policy.    There will be no smoking allowed anywhere in the premises by anyone. It will be Tenant's
responsibility to convey to and enforce this policy by its employees, agents and all other invitees. 

        17.   Paragraph Headings.    The paragraph headings in this instrument are for convenience only and do not limit or
construe the contents or any paragraphs. 

        18.   Severability.    It is the intent of the parties that if a part of this Lease is invalid, all valid parts that
are severable from the invalid part shall remain in effect. If a part of this Lease is invalid in one 

or
more of it applications, that part remains in effect in all valid applications that are severable from the invalid applications. 

        19.   Landlord's Liability.    The term "Landlord" as used herein shall mean only the owner or owners at the time in
question of the premises. In the event of any transfer of such title or interest, Landlord herein named (and in case of any subsequent transfers the then grantor) shall be relieved from and after the
date of such transfer of all liabilities as respects Landlord's obligations thereafter to be performed, provided that any funds in the hands of Landlord or the then grantor at time of such transfer in
which Tenant has an interest shall be delivered to the grantee, who shall assume the obligations of Landlord or the then grantor to Tenant with respect to those funds. The obligations contained in
this Lease to be performed by Landlord shall, subject to the foregoing provisions of this paragraph 19, be binding on Landlord's successors and assigns. 

        20.   Supersedes.    This Lease supersedes all prior agreements between the parties. 

        21.   Exercise of Rights.    The omission of Landlord or Tenant to exercise any right provided for on the default of
the other at any time shall not preclude Landlord or Tenant from the exercise of such right at any subsequent default of the other or be deemed a waiver therof or the right to do so. 

        22.   Binding Effect.    This Lease shall be binding upon and inure to the benefit of the heirs, successors,
administrators, and permitted assigns of the parties hereto. 

        23.   Security Deposit.    At the execution of this Lease, Tenant will pay Landlord the sum of $25,000 as a security
deposit. Landlord shall hold and use the security deposit as security for Tenant's performance of its obligations under this Lease. At the termination of this Lease and if at that time Tenant has
fully complied with all of its obligations under this Lease, Landlord shall return the security deposit, without interest (or the part of the security deposit which Landlord has not applied to satisfy
Tenant's obligations under this Lease), to Tenant. 

        24.   Governing Law.    This Agreement and all matters relating thereto shall be governed by the laws of Montana. 

        25.   Arbitration.    Any dispute under this Lease shall be decided by binding arbitration initiated and conducted in
accordance with the commercial arbitration rules of the American Arbitration Association ("AAA"). The parties shall decide upon the arbitrator. If the parties are unable to decide upon the arbitrator
within ten (10) days after a notice from one party to the other that a dispute exists under this Lease, the AAA shall select the arbitrator. The decision of the arbitrator shall be binding. All
costs of arbitration shall be borne by the party the arbitrator determines to be the non-prevailing party. Such costs shall include the costs and reasonable attorneys' fees of the
prevailing party. 

IN
WITNESS WHEREOF, the parties have hereunto set their hands as of the date and year first written above. 

	

GENESIS PARTNERS, LLC—Landlord
	

By:	

 	

 
	

/s/  STEVE DAINES      
 Steve Daines, member—Landlord	

7/17/00
 date	

 
	

/s/  CLAIR DAINES      
 Clair Daines, member—Landlord	

7/17/00
 date	

 
	

/s/  GREG GIANFORTE      
 Greg Gianforte, member—Landlord	

7/14/00
 date	

 
	

Right Now Technologies, Inc.—Tenant

	

By	

/s/  SUSAN CARSTENSEN      
 Susan Carstenson

Chief Financial Officer	

7/14/00
 date	

 

 
 

AMENDMENT    
    

This
Amendment is made as of November 1st, 2001, and modifies the Lease Agreement dated July 10, 2000 between Genesis Partners, LLC ("Landlord") and RightNow Technologies, Inc.
("Tenant") for the leased property located at 40 Enterprise Blvd., Bozeman, MT consisting of approximately 29,724 square feet, the ("Agreement"). The following is added as new paragraphs at the end of
Section 4 of the agreement: 

By
creating new jobs and a value added product in the State of Montana, Tenant Enables Landlord to apply for a reduced interest "Value Added Loan" from the Montana Board of Investments ("MBOI").
Landlord will reduce Tenant's rent by the amount of the reduction, if any, in Landlord's loan payment attributable to the lower interest rate from the MBOI because of job creation. The total number of
new jobs created is multiplied by 0.05% to arrive at the total interest rate reduction available. Loan rate may be reduced up to 2.5% (250 basis points) by creating 50 "FTE" jobs as calculated by the
MBOI. For example, if loan rate were 8.5% (7.55% MBOI rate + 0.95% Big Sky Western Bank spread), and Tenant created 50 "FTE" jobs per the MBOI guidelines, then loan rate would be reduced
250 basis points to 6.0%, and Tenant's rent would be reduced accordingly. 

Landlord
will reduce Tenant's rent by the amount of the reduction, if any, in Landlord's loan payment attributable to the lower interest rate. Without the lower interest rate, Landlord expects to pay
~$12,000 per month on the loan. If the interest rate on the loan is reduced 2.5%, then the Landlord's payment on the loan will be ~$9,500/mo, resulting in a monthly rent credit to the Tenant of
~$2,500. 

Tenant
shall be responsible for all reporting necessary for qualifying and maintaining eligibility for the "Value Added" loan. Any fluctuations in the interest rate, and subsequently in Landlord's
payment shall be reflected 100% in the rent credit. 

IN
WITNESS WHEREOF, the parties have hereunto set their hands as of the date and year first written above. 

	

GENESIS PARTNERS, LLC—Landlord
	

By:	

 	

 
	

/s/  STEVE DAINES      
Steve Daines, member—Landlord	

11/01/01
Date	

 
	

/s/  CLAIR W. DAINES      
Clair w. Daines, member—Landlord	

11/01/01
Date	

 
	

/s/  GREG GIANFORTE      
Greg Gianforte, member—Landlord	

11/01/01
Date	

 
	

RIGHTNOW TECHNOLOGIES, INC.—Tenant
	

By:	

 	

 
	

/s/  SUSAN CARSTENSEN      
Susan Carstenson, Chief Financial Officer	

11/1/01
Date	

 

QuickLinks

Exhibit 10.5

LEASE AGREEMENT

AMENDMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]