Document:

Exhibit 10.7

 

Master Lease Number: TFG/SC
121405

 

MASTER LEASE
AGREEMENT

 

THIS MASTER LEASE
AGREEMENT is made as of December 14, 2005,
between Tetra Financial Group, L.L.C.
(“Lessor”), a Utah limited liability company with a principal place of business
at 6925 Union Park Center, Suite 525, Midvale, Utah 84047, and Sento Corporation (“Lessee”), a Utah
corporation with a principal place of business at 420 E. South Temple, Suite 400,
Salt Lake City, UT 84111.

 

1.                                      SCOPE
OF LEASE

 

On the terms and conditions of this Master Lease Agreement (“Master
Lease”), Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to
lease from Lessor the property described in the Schedule(s) executed by Lessor
and Lessee in connection with this Master Lease (collectively the “Equipment”,
and individually an “Item”).  The terms
of each Schedule hereto are subject to any and all conditions and
provisions of this Master Lease at the time of execution of such Schedule.  Each Schedule shall constitute a
separate and independent Lease and obligation of Lessee.  In the event of a conflict between this
Master Lease and any Schedule hereto, the language of the Schedule shall
prevail.  The term “Lease” shall refer to
an individual Schedule that incorporates this Master Lease.

 

2.                                      LEASE
TERM

 

(a)                                  The
term of the Lease shall be comprised of a Delivery Term, Acceptance Term and
Base Term.  The Delivery Term for each
Item shall commence on the date the Item is delivered to Lessee and shall end
on the Acceptance Date.  The Acceptance
Term shall commence on the Acceptance Date, as set forth in the Acceptance
Certificate, and terminate on the first day of the calendar quarter following
the Acceptance Date for the last Item to be installed (“Base Term Commencement
Date”).  The Base Term of the Lease shall
begin on the Base Term Commencement Date, and shall, subject to Section 19(d) hereof,
end on the last day of the month of the Base Term.  The date of acceptance (“Acceptance Date”)
for any Item shall be the earlier of either (i) the date as set forth in
the Acceptance Certificate, or (ii) if Lessee does not, for any reason,
sign an Acceptance Certificate the date shall be the date Lessee received the
Equipment.

 

(b)                                 In
the event Lessee requests, for its benefit, that Lessor advance payments to supplier(s)
or manufacturer(s) of the Equipment (collectively “Supplier(s)”) during the
period prior to Lessee’s delivery of the Acceptance Certificate and make
progress payments to such Supplier(s) or otherwise reimburse Lessee for
deposits, if any, made to such Supplier(s) (all such Lessor payments and
reimbursements collectively referred to as “Progress Payments”), Lessor may, in
its sole discretion, accommodate such requests by Lessee, and make such
Progress Payments pursuant to the terms provided for in this Section 2(b).  Lessee shall pay to Lessor a daily pro rata
rental fee from the date each Item of Equipment is delivered (such delivery to
be confirmed by Lessee) (the “Partial Acceptance Date”) through the Acceptance
Date, as defined in Section 2(a) above, calculated by multiplying the
Base Lease Rate Factor specified in the applicable Schedule times the
amount of such Progress Payment divided by thirty (30).  This pro rata rental fee will be billed
monthly to Lessee.  If all of the
Equipment to be included in the applicable Schedule is not accepted by
Lessee within ninety (90) days of the date of Lessor’s execution of the
applicable Schedule (the “Funding Cut-Off Date”), Lessor may, at its sole
discretion, pursue any one of the following options: (i) commence the term
of any Schedule (using the Funding Cut-Off Date as the Acceptance Date)
based on the portion of the Equipment that has been delivered to Lessee and
paid for by Lessor as of the Funding Cut-Off Date; (ii) extend the
Acceptance Term and establish a new Funding Cut-Off Date; or (iii) demand
that the Lessee pay to Lessor a total amount equal to all Progress Payments
paid to Supplier(s) on behalf of Lessee, plus all pro rata rentals, taxes, late
fees and other payments which are due and owing under this Master Lease.  Should such demand be made by Lessor, Lessee
hereby unconditionally agrees to reimburse said amounts to Lessor in full
within ten (10) business days of said demand, and upon receipt of said
payment in full, Lessor shall release Lessee from further payment obligations
under the Master Lease.  Lessor hereby
reserves the right to

 

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terminate this Acceptance Term at any time if
Lessor determines, at Lessor’s sole discretion, that there has been an adverse
change in Lessee’s financial condition, at which time Lessor may elect either
(i), (ii), or (iii) above.

 

3.                                      PAYMENTS
OF RENT

 

(a)                                  Lessee
shall pay as rent for use of the Equipment, aggregate rentals equal to the sum
of all the Base Monthly Rental (as set forth on the Schedule) and other
payments due under the Lease for the entire Base Term.  The Base Monthly Rental shall begin on the
Acceptance Date and shall be due and payable by Lessee in advance on the first
day of each month throughout the Base Term. 
If the Acceptance Date does not fall on the first day of a calendar
quarter, then the first rental payment shall be calculated by multiplying the
number of days from and including the Acceptance Date to the Base Term
Commencement Date by a daily rental equal to one-thirtieth (1/30) of the Base
Monthly Rental, and shall be due and payable on the Acceptance Date.  Lessee shall pay all rentals to Lessor, or
its assigns, at Lessor’s address set forth above (or as otherwise directed in
writing by Lessor, or its assigns), without notice or demand.  LESSEE SHALL NOT ABATE,
SET OFF OR DEDUCT ANY AMOUNT OR DAMAGES FROM OR REDUCE ANY BASE MONTHLY RENTAL
OR OTHER PAYMENT DUE FOR ANY REASON. 
THIS LEASE IS NON-CANCELABLE FOR THE ENTIRE TERM
OF THE BASE TERM AND ANY EXTENSION PERIODS.

 

(b)                                 If
any rental or other payment due under any Lease shall be unpaid after its due
date, Lessee will pay on demand, as a late charge, but not as interest, the
greater of twenty-five dollars ($25.00) or five percent (5%) of any such unpaid
amount but in no event to exceed maximum lawful charges.

 

4.                                      TAXES

 

Lessee shall pay to Lessor all taxes, fees, assessments and charges
paid, payable or required to be collected by Lessor, however designated, which
are levied or based on the Monthly Rental or other payment due under the Lease,
or on the possession, use, operation, lease, rental, sale, purchase, control or
value of the Equipment, including without limitation, registration and license
fees and assessments, state and local privilege or excise taxes, documentary
stamp taxes or assessments, sales and use taxes, personal and other property
taxes, and taxes or charges based on gross revenue, but excluding taxes based
on Lessor’s net income.  Lessee shall
promptly remit to Lessor all taxes in advance of their payment due date.  Lessee shall pay all penalties and interest
resulting from its failure to timely remit all taxes to Lessor.  Lessee also agrees to pay all servicing costs
associated with processing and paying sales and property taxes.  Lessor shall file all required sales and use
tax and personal property tax returns and reports concerning the Property with
all applicable governmental agencies.

 

5.                                      NET
LEASE

 

Each Schedule provides for a net lease, and Lessee shall be solely
responsible for all costs and expenses of every nature arising out of the
possession, use and operation of the Equipment. 
Lessee’s obligation to pay the Base Monthly Rental and all other sums
due hereunder from Lessee to Lessor shall be absolute and unconditional and
shall not be subject to any abatement, recoupment, defense, claim,
counter-claim, reduction, set-off, or any other adjustment of any kind for any
reason whatsoever.  Except as expressly
provided for herein, neither this Master Lease, nor any Schedule, shall
terminate nor shall the obligations of Lessee be affected by reason of any
defect in, damage to, or any loss or destruction of the Equipment or any unit
from any cause whatsoever, or the interference with the use thereof by any
private person, corporation, or government authority or as a result of any war,
riot, insurrection or Act of God.  It is
the express intention of the Lessor and Lessee that all rent and other sums
payable by Lessee under the Lease shall be, and continue to be, payable in all
events throughout the term of the Lease. 
The Lease shall be binding upon the Lessee, its successors and permitted
assigns and shall inure to the benefit of Lessor and its Assignee(s).

 

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6.                                      USE;
INSTALLATION; ALTERATIONS; RETURNS

 

(a)                                  Upon
delivery of the Equipment to Lessee, Lessee shall pay all transportation,
installation, rigging, packaging and insurance charges with respect to the
Equipment.  In the case of a sale and
leaseback transaction, Lessee shall, upon the request of Lessor, certify the
date the Equipment was first put into use. 
Lessee will provide the required electric current and a suitable place
of installation for the Equipment with all appropriate facilities as specified
by the manufacturer.  No cards, tapes,
disks, data cells or other input/output and storage media may be used by Lessee
to operate any Equipment unless it meets the specifications of the
manufacturer.  Lessee agrees that it will
not install, or permit the installation of, the Equipment without Lessor’s
consent.

 

(b)                                 Lessee
shall at all times keep the Equipment in its sole possession and control.  The Equipment shall not be moved from the
location stated in the Schedule without the prior written consent of
Lessor.  Lessee shall cause the Property
to be installed, used, operated and, at the termination of the Lease, if
applicable, removed (i) in accordance with any applicable manufacturer’s
manuals or instructions; (ii) by competent and duly qualified personnel
only; and (iii) in accordance with applicable governmental
regulations.  Lessee shall comply with
all applicable laws, regulations, requirements, rules and orders, all
manufacturers’ instructions and warranty requirements, and with the conditions
and requirements of all policies or insurance with respect to the Equipment and
the Lease.

 

 (c)                               Lessee may not affix or
install any accessory, feature, equipment or device to the Equipment or make
any improvement, upgrade, modification, alteration or addition to the Equipment
(“Improvements”) that will detrimentally affect the Equipment’s end of Base
Term residual value without first obtaining the written consent of Lessor,
which consent shall not be unreasonably withheld.  Any such Improvements shall be made at Lessee’s
expense and shall not interfere with the normal and satisfactory operation or
maintenance of the Equipment.  Unless
Lessor shall otherwise agree in writing, all such Improvements shall be and
become the property of Lessor upon their attachment to the Equipment or, at the
option of the Lessee, shall be removed by Lessee at the termination of the
Lease and the Equipment restored at Lessee’s expense to its original condition
with the acceptance of reasonable wear and tear only.  Removal of any Improvements shall be
performed by the manufacturer, at the sole expense of Lessee.  Any Improvements leased by Lessee from Lessor
shall be under a separate Schedule.  The
Improvements shall not be placed in service by Lessee prior to acquisition by
Lessor, and Lessee shall execute and deliver any document necessary to vest
title to such Improvements in Lessor.

 

(d)                                 The
Equipment consists solely of personal property and not fixtures.  The Equipment is removable from and is not
essential to the premises at which the Equipment is located.  The Equipment is and shall remain personal
property during the term of the Lease notwithstanding that any portion thereof
may in any manner become affixed, attached to or located on real property or
any building or improvement thereon. 
Lessee shall not affix or attach any of the Equipment to any real
property in any manner which would change its nature from that of personal
property to real property or to a fixture or permit such to occur.  Lessee shall not permit the Equipment to
become an accession to other goods or a fixture to or part of any real
property.  Upon Lessor’s request, Lessee
will obtain and deliver to Lessor a lien waiver in a form satisfactory to
Lessor, from all persons not a party hereto who might claim an interest, lien
or other claim in the Equipment.

 

(e)                                  Subject
to Section 19(d) hereof, Lessee shall, at the termination of the
Lease, at its expense, de-install, pack and return the Equipment to Lessor at
such location as shall be designated by Lessor in the same operating order,
repair, condition and appearance as of the Acceptance Date, reasonable wear and
tear excepted, with all current engineering changes prescribed by the
manufacturer of the Equipment or a maintenance contractor approved by Lessor
incorporated in the Equipment.  Until the
return of the Equipment to Lessor, Lessee shall be obligated to pay the Base
Monthly Rental and all other sums due under the Lease.  Upon redelivery to Lessor, Lessee shall

 

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arrange and pay for such repairs as are
necessary for the manufacturer of the Equipment to accept the Equipment under a
maintenance contract at its then standard rates.

 

(f)                                    In
the event the Equipment includes Software, the following shall apply: (i) Lessee
shall possess and use the Software in accordance with the terms and conditions
of any License agreement entered into with the owner/vendor/licensor of such
Software and shall not breach the License (at Lessor’s written request, Lessee
shall provide a complete copy of the License to Lessor); (ii) Lessee
agrees that Lessor has an interest in the License and Software due to its
payment of the price thereof and is an assignee or third-party beneficiary of
the License; (iii) as due consideration for Lessor’s payment of the price
of the License and Software and for providing the Software to Lessee at a lease
rate (as opposed to a debt rate), Lessee agrees that Lessor is leasing (and not
financing) the Software to Lessee; (iv) except for the original price paid
by Lessor, Lessee shall, at its own expense, pay promptly when due all
servicing fees, maintenance fees, update and upgrade costs, modification costs,
and all other costs and expenses relating to the License and Software and
maintain the License in effect during the term of the Lease; and (v) the
Software shall be deemed Equipment for all purposes under the Lease.

 

(g)                                 With
regard to Software, at the expiration or earlier termination of any Lease, or
upon demand by Lessor upon the occurrence of an Event of Default (hereinafter
defined) under the Lease, Lessee shall (i) delete from its systems all
Software then installed; (ii) destroy all copies or duplicates of the
Software which were not returned to Lessor; and (iii) cease using the
Software altogether.  Upon its receipt
from Lessee, Lessor shall be responsible to destroy the Software or render it
unusable, or to return the Software to the owner/vendor/licensor so that Lessee
shall not be in breach of any software license, and Lessor indemnifies Lessee
for all costs, damages or expenses including reasonable attorney fees incurred
by Lessee as a result of Lessor’s failure to comply with the foregoing
provision.

 

7.                                      REPAIRS
AND MAINTENANCE

 

Lessee shall promptly pay all costs, expenses and obligations of every
kind and nature incurred in connection with the use, maintenance, servicing,
repair or operation of the Equipment which may arise or be payable during the
lease term of such Equipment hereunder, except as specifically provided herein,
and shall keep the Equipment in as good repair, condition and working order as
when delivered to Lessee hereunder, reasonable wear and tear from the proper
use thereof alone excepted, and shall furnish any and all parts, mechanisms and
devices required to keep the Equipment in such good repair, condition and
working order, at the expense of Lessee, and in addition will permit the
manufacturer to make all free-of-charge engineering changes, all so that the
Equipment will remain acceptable to the manufacturer for maintenance.  Without limiting the foregoing, Lessee shall,
during the continuance of this Lease, at its own expense, make appropriate
arrangements for maintenance of each item of Equipment, including, without
limitation with respect to each item of Equipment, entering into and maintaining
in force a contract with the manufacturer of the Equipment or other person or
entity approved in writing by Lessor covering at least prime shift maintenance.

 

8.                                      OWNERSHIP
AND INSPECTION

 

(a)                                  The
Equipment shall, at all times, be the sole and exclusive property of Lessor or
its assigns.  Except as otherwise
provided herein, Lessee shall have no right or property interest therein,
except for the right to use the Equipment in the normal operation of its
business at the Equipment Location. 
Lessee represents that the Lease is intended to be a “finance lease” and
not a “lease intended as security” as those terms are used in the Uniform
Commercial Code; and that the Lease is intended to be a “true lease” as the
term is commonly used under the Internal Revenue Code of 1986 as amended.

 

(b)                                 Lessor shall be
permitted to display notice of its ownership on the Equipment by means of a
suitable stencil, label or plaque affixed thereto, and Lessee shall not permit
their removal or concealment.  Lessee
shall keep the

 

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Equipment free from any
marking or labeling which might be interpreted as a claim of ownership by
Lessee or any party other than Lessor.  
Lessee shall immediately notify Lessor in writing concerning the details
of any damage or loss to the Equipment, including any damage or loss arising
from the alleged or apparent improper manufacture, functioning or operation of
the Equipment.

 

(c)           LESSEE SHALL KEEP THE EQUIPMENT AND
LESSEE’S INTEREST UNDER ANY LEASE FREE AND CLEAR OF ALL LIENS AND ENCUMBRANCES
(EXCEPT THOSE CREATED BY LESSOR), AND SHALL NOT ASSIGN THE LEASE OR ANY OF ITS
RIGHTS UNDER THE LEASE OR SUBLEASE ANY OF THE EQUIPMENT OR GRANT ANY RIGHTS TO
THE EQUIPMENT, EXCEPT THOSE PERMITTED IN WRITING BY LESSOR OR ITS ASSIGNS.   No permitted assignment or sublease shall
relieve Lessee of any of its obligations hereunder, and Lessee agrees to pay
all costs and expenses Lessor may incur in connection with any permitted assignment
or sublease.  Subject to the terms of
this Lease, this Lease and each Schedule inure to the benefit of, and are
binding upon, the successors and assigns of Lessee, and, without limiting the
foregoing, shall bind all persons who become bound as a “new debtor” (as
defined in the Uniform Commercial Code) to this Lease and any Schedule.  All representations, warranties, covenants
and indemnities of Lessee made or agreed to in the Lease or in any certificates
delivered in connection therewith shall survive the expiration, termination or
cancellation of the Lease for any reason.

 

(d)                                 Upon
reasonable notice to Lessee, Lessor or its agents or assigns shall have access
to the Equipment at all reasonable times for the purpose of inspecting the
Equipment and for any other purposes contemplated by the Lease, subject to the
reasonable security requirements of Lessee.

 

9.                                      ASSIGNMENT

 

(a)                                  Lessor
may sell, assign or otherwise transfer all or any part of its right, title and
interest in and to the Lease and Equipment to a third-party (“Assignee”) either
outright or as security for loans.  Any
such Assignee may assume all of the rights and obligations of Lessor in
connection with the Equipment or any Schedules sold, assigned or otherwise
transferred, in which case Lessor shall be relieved therefrom.  To the extent of any such assumption of
obligations, all references to Lessor herein shall hereafter mean such
Assignee.

 

(b)                                 Upon
notice of any such assignment and instruction from Lessor, Lessee shall pay its
Base Monthly Rental and other payments and perform its other obligations under
the Lease to the Assignee (or to any party designated by Assignee).  Lessee’s obligations under the Lease with
respect to Assignee shall be absolute and unconditional and not be subject to
any abatement, reduction, recoupment, defense, offset or counterclaim for any
reason, alleged or proven, including, but not limited to, defect in the
Equipment, the condition, design, operation or fitness for use of the Equipment
or any loss or destruction or obsolescence of the Equipment or any part, the
prohibition or other restrictions against Lessee’s use of the Equipment, the
interference with such use by any person or entity, any failure by Lessor to
perform any of its obligations contained in the Lease, and insolvency or
bankruptcy or Lessor, or for any such cause.

 

(c)                                  Upon
request of Lessor, Lessee shall submit documents and certificates as may be
reasonably required by Assignee to secure and complete such transfer or
assignment, including, but not limited to, any documents required herein.  Lessee shall, if requested, restate to
Assignee the representations, warranties and covenants contained in the Lease
(upon which Lessee acknowledges Assignee may rely), and shall make such other
representations, warranties and covenants to Assignee as may be reasonably
required to give effect to the assignment. 
Lessee authorizes Lessor’s assigns to file UCC-1 financing statements or
precautionary filings as Lessor or its assigns deem necessary.  Lessor’s assigns are authorized to take any
measures necessary to protect their interest in the Equipment.

 

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10.                               WARRANTY;
LIMITATION OF LIABILITY

 

(a)                                  Lessee
acknowledges that Lessor is not the manufacturer of the Equipment nor the
manufacturer’s agent nor a dealer therein. The Equipment is of a size, design,
capacity, description and manufacture selected by the Lessee.  Lessee is satisfied that the Equipment is
suitable and fit for its purposes. 
LESSEE AGREES THAT LESSOR HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY OR
REPRESENTATION WHATSOEVER, EXPRESS OR IMPLIED, AS TO THE EQUIPMENT, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY OR REPRESENTATION AS TO:  (i) THE DESCRIPTION, CONDITION, DESIGN,
QUALITY OR PERFORMANCE OF THE EQUIPMENT OR QUALITY OR CAPACITY OF MATERIALS OR
WORKMANSHIP IN THE EQUIPMENT; (ii) ITS MERCHANTABILITY OR FITNESS OR
SUITABILITY FOR A PARTICULAR PURPOSE WHETHER OR NOT DISCLOSED TO LESSOR; AND (iii) DELIVERY
OF THE EQUIPMENT FREE OF THE RIGHTFUL CLAIM OF ANY PERSON BY WAY OF
INFRINGEMENT OR THE LIKE.  LESSOR
EXPRESSLY DISCLAIMS ALL SUCH WARRANTIES. 
If the Equipment includes any applicable Software, and the Software is
not properly installed, does not function as represented or warranted by
original owner/vendor/licensor, or is unsatisfactory for any reason, Lessee
shall make any claim on account thereof solely against original
owner/vendor/licensor and shall nevertheless pay all sums payable under the
Lease, Lessee hereby waiving the right to make any such claims against Lessor.  Lessor shall not be liable to Lessee for any
loss, damage or expense of any kind or nature caused, directly or indirectly,
by the Equipment or the use, possession or maintenance thereof, or the repair,
service or adjustment thereof, or by any delay or failure to provide any such
maintenance, repair, service or adjustment, or by any interruption of service
or loss of use thereof (including without limitation, Lessee’s use of or right
to use any Software) or for any loss of business howsoever caused.

 

(b)                                 NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED IN THE LEASE, LESSOR SHALL NOT, UNDER ANY
CIRCUMSTANCES, BE LIABLE TO LESSEE OR ANY THIRD PARTY, FOR CONSEQUENTIAL,
INCIDENTAL, SPECIAL OR EXEMPLARY DAMAGES ARISING OUT OF OR RELATED TO THE
TRANSACTION CONTEMPLATED HEREUNDER, WHETHER IN AN ACTION BASED ON CONTRACT,
TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR ANY OTHER LEGAL THEORY,
INCLUDING WITHOUT LIMITATION, LOSS OF ANTICIPATED PROFITS, OR BENEFITS OF USE
OR LOSS OF BUSINESS, EVEN IF LESSOR IS APPRISED OF THE LIKELIHOOD OF SUCH
DAMAGES OCCURRING.

 

IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT
EACH AND EVERY PROVISION OF ANY LEASE WHICH PROVIDES FOR A LIMITATION OF
LIABILITY, DISCLAIMER OF WARRANTIES OR EXCLUSION OF DAMAGES, IS INTENDED BY THE
PARTIES TO BE SEVERABLE FROM ANY OTHER PROVISION AND IS A SEPARABLE AND
INDEPENDENT ELEMENT OF RISK ALLOCATION AND IS INTENDED TO BE ENFORCED AS SUCH.

 

(c)                                  Lessor
assigns to Lessee all assignable warranties on the Equipment, including without
limitation any warranties described in Lessor’s purchase contract, which
assignment shall be effective only (i) during the Acceptance Term and the
Base Term and any extensions thereof; and (ii) so long as no Event of
Default exists.

 

11.                               QUIET
ENJOYMENT

 

Lessor covenants that so long as Lessee is not in Default under a
Lease, Lessee shall be entitled to quietly possess the Equipment subject to and
in accordance with the terms and conditions of the Lease.

 

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12.                               GENERAL
INDEMNITY

 

(a)                                  Lessee
shall indemnify and hold Lessor harmless from and against any and all claims,
(including without limitation negligence, tort and strict liability), damages,
judgments, suits and legal proceedings, and any and all costs and expenses in
connection therewith (including reasonable attorney fees incurred by Lessor
either in enforcing this indemnity or in defending against such claims),
arising out of or in any manner connected with or resulting from the Lease or
the Equipment, including, without limitation the manufacture, purchase,
financing, ownership, rejection, non-delivery, transportation, delivery,
possession, use, operation, maintenance, condition, lease, return, storage or
disposition thereof; including without limitation those claims based on latent
and other defects, whether or not discoverable, or any claim for patent,
trademark or copyright infringement). 
The provisions of this Section shall survive the expiration or
termination of any Lease.

 

(b)                                 Upon
request of Lessor, Lessee shall assume the defense of all demands, claims, or
actions, suits and all proceedings against Lessor for which indemnity is
provided and shall allow Lessor to participate in the defense thereof.  Lessor shall be subrogated to all rights of
Lessee for any matter which Lessor has assumed obligation hereunder, and may
settle any such demand, claim, or action without Lessee’s prior consent, and
without prejudice to Lessor’s right to indemnification hereunder.

 

13.                               RISK
OF LOSS OR DAMAGE

 

(a)                                  From
the earlier of the date the supplier ships the Equipment to Lessee or the date
Lessor confirms Lessee’s purchase order or contract to supplier until the date
the Equipment is returned to Lessor as provided in the Lease, Lessee hereby
assumes and shall bear all risk of loss for theft, damage or destruction to the
Equipment, howsoever caused.  NO SUCH
LOSS OR DAMAGE SHALL IMPAIR ANY OBLIGATION OF LESSEE UNDER THIS LEASE WHICH
SHALL CONTINUE IN FULL FORCE AND EFFECT.

 

(b)                                 In
the event of damage or loss to the Equipment (or any part thereof) and irrespective
of payment from any insurance coverage maintained by Lessee, but applying full
credit therefore, Lessee shall at the option of Lessee, (a) place the
Equipment in good repair, condition and working order; or (b) replace the
Equipment (or any part thereof) with like property of equal or greater value,
in good repair, condition and working order and transfer clear title to such
replacement property to Lessor whereupon such replacement property shall be
deemed the Equipment for all purposes under the Lease; or (c) pay to
Lessor the total rent due and owing at the time of such damage or loss plus an
amount which is equal to the Casualty Loss Value (defined in the Casualty Loss
Schedule) specified in the Casualty Loss Schedule attached to the
Schedule.

 

14.                               INSURANCE

 

During the term of this Lease, Lessee shall at its sole cost and
expense maintain in full force and effect “all risk” extended coverage fire and
casualty insurance on the Equipment, and comprehensive public liability
insurance in amounts and with carriers reasonably satisfactory to Lessor.  Any such insurance shall name Lessor and the
Assignee(s) as additional insured and, as for the “all risk” insurance, loss
payees as their interests may appear. 
Such policy shall provide that it may not be cancelled or materially
altered unless thirty (30) days prior written notice is given to all parties
named therein.  Upon Lessor’s written
request, Lessee shall provide Lessor with a Certificate of Insurance evidencing
such insurance coverage.  If, within fifteen
days after Lessee’s receipt of such request, Lessee has not provided Lessor
with a satisfactory Certificate, then Lessor may, at Lessor’s option, obtain
such insurance until Lessee provides the Certificate, and Lessee shall
reimburse Lessor for the cost of such insurance when billed.  All insurance covering loss or damage to the
Equipment shall contain a breach of warranty clause reasonably satisfactory to
Lessor.

 

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15.                               EVENTS
OF DEFAULT

 

(a)                                  An
“Event of Default” shall occur under any Lease if:

 

(1)                                  Lessee
fails to pay any installment of rent or other charge or amount due under the
Lease within ten (10) days after notice that such payment is overdue; or

 

(2)                                  Lessee
attempts to or does, remove, sell, assign, transfer, encumber, sublet or part
with possession of any one or more items of the Equipment or any interest under
any Lease, except as expressly permitted herein, or permits a judgment or other
claim to become a lien upon any or all of Lessee’s assets or upon the
Equipment; or

 

(3)                                  Lessee
permits any item of Equipment to become subject to any levy, seizure,
attachment, assignment or execution; or Lessee abandons any item of Equipment;
or

 

(4)                                  Lessee
or any guarantor of Lessee, fails to observe or perform any of its covenants
and obligations required to be observed or performed under the Lease and such
failure continues uncured for ten (10) days after written notice is
provided to Lessee, except that the ten (10) day cure period shall not
apply and an Event of Default shall occur immediately upon Lessee’s failure to
maintain insurance; or

 

(5)                                  Lessee
or any guarantor of Lessee, breaches any of its representations and warranties
made under any Lease, or if any such representations or warranties shall be
false or misleading in any material respect; or

 

(6)                                  Lessee
or any guarantor of Lessee, shall (i) be adjudicated insolvent or a
bankrupt, or cease, be unable, or admit its inability, to pay its debts as they
mature, or make a general assignment for the benefit of creditors or enter into
any composition or arrangement with creditors; (ii) apply for or consent
to the appointment of a receiver, trustee or liquidator of it or of a
substantial part of its property, or authorize such application or consent, or
proceedings seeking such appointment shall be instituted against it without
such authorization, consent or application and shall continue undismissed for a
period of sixty (60) days; (iii) authorize or file a voluntary petition in
bankruptcy or apply for or consent to the application of any bankruptcy,
reorganization in bankruptcy, arrangement, readjustment of debt, insolvency,
dissolution, moratorium or other similar law of any jurisdiction, or authorize
such application or consent; or proceedings to such end shall be instituted
against it without such authorization, application or consent and such
proceeding instituted against it shall continue undismissed for a period of
sixty (60) days; or

 

(7)                                  Lessee
or any guarantor of Lessee, shall suffer a material adverse change in its
financial condition after the date hereof as reasonably determined by Lessor in
its reasonable discretion, or there shall occur a substantial change in
ownership of the outstanding stock of Lessee or a substantial change in control
of its board of directors; or

 

(8)                                  Lessee
shall be in default under any other Schedule or agreement executed with
Lessor; or shall fail to sign or otherwise authenticate and deliver to Lessor
any document or record reasonably requested by Lessor in connection with any
Lease, or shall fail to provide financial statements to Lessor as provided in Section 19(j)
hereof, or if Lessee is in default of any agreement with any party other than
Lessor; or

 

(9)                                  Lessee
breaches any license or other agreement for Software; or

 

8

 

(10)                            Lessee
fails to promptly execute or otherwise authenticate and deliver to Lessor or
its assigns any document or record, as applicable, required under the terms of
this Master Lease; or

 

(11)                            Lessee
shall have terminated or changed its corporate existence, consolidated with,
merged into, or conveyed or leased substantially all of its assets to any
person or entity, unless: (i) such person or entity executes and delivers
to Lessor an agreement satisfactory in form and substance to Lessor, in its
sole discretion, containing such person’s or entity’s effective assumption, and
its agreement to pay, perform, comply with and otherwise be liable for, in a
due and punctual manner, all of Lessee’s obligations having previously arisen,
or then or thereafter arising, under the Lease, together with any and all
documents, agreements, instruments, certificates, opinions and filings
requested by Lessor; (ii) Lessor is satisfied as to the creditworthiness
of such person’s or entity’s conformance to other standard criteria then used
by Lessor for such purposes; and (iii) Lessee has provided no less than
thirty (30) days prior written notice of such occurrence to Lessor or its
assigns; or

 

(12)                            Lessor
in good faith believes that the prospect of payment or performance has become
impaired, or if Lessee takes any action, makes any representation, or fails to
do any thing requested by Lessor, at any time before or after the execution of
this Master Lease, the result of which causes Lessor, in good faith, to believe
that the prospect of Lessee’s payment or performance under the Lease is
impaired, or otherwise causes Lessor to feel insecure in funding or continuing
to fund the Lease or any Schedule.

 

16.                               REMEDIES

 

(a)                                  Upon
the happening of any Event of Default, and at any time thereafter, Lessor may
declare the Lessee to be in default, and may do any one or more of the
following:

 

(1)                                  enforce this Master
Lease according to its terms;

 

(2)                                  advance
funds on Lessee’s behalf to cure the Event of Default, whereupon Lessee shall
immediately reimburse Lessor therefore, together with late charges accrued
thereon;

 

(3)                                  refuse to deliver the
Equipment to Lessee;

 

(4)                                  upon notice to
lessee, refuse to fund any Schedule(s) pursuant to the Lease;

 

(5)                                  upon
notice to Lessee, cancel this Master Lease and any or all Schedules executed
pursuant thereto;

 

(6)                                  require additional
collateral to secure the Lease;

 

(7)                                  declare any Lease(s)
immediately due and payable;

 

(8)                                  if
Lessor determines, in its sole discretion, not to take possession of the
Equipment, Lessor shall continue to be the owner of the Equipment and may, but
is not obligated to, dispose of the Equipment by sale or otherwise, all of
which determinations may be made by Lessor in its sole discretion and for its
own account;

 

(9)                                  declare
immediately due and payable all amounts due or to become due hereunder for the
full term of the Lease (including any renewal or purchase options which Lessee
has contracted to pay);

 

(10)                            with
or without terminating the Lease, recover the Casualty Loss Value of the
Equipment as of the rent payment date immediately preceding the date of default
together with all costs and expenses incurred by

 

9

 

Lessor in the repossession, recovery,
storage, repair, sale, re-lease or other disposition of the Equipment,
including without limitation, reasonable attorney fees and costs incurred in
connection therewith or otherwise resulting or arising from Lessee’s default,
and any indemnity if then determinable, plus interest on all of the above until
paid (before and after judgment) at the lesser of the rate of eighteen percent
(18%) per annum or the highest rate permitted by law;

 

(11)                            with
notice to Lessee, repossess the Equipment wherever found, with or without legal
process, and for this purpose Lessor and/or its agents or assigns may enter
upon any premises of or under the control or jurisdiction of Lessee or any
agent of Lessee, without liability for suit, action or other proceeding by
Lessee (any damages occasioned by such repossession being hereby expressly
waived by Lessee) and remove the Equipment therefrom; Lessee further agrees on
demand, to assemble the Equipment and make it available to Lessor at a place to
be designated by Lessor;

 

(12)                            in its
sole discretion, sell, re-lease or otherwise dispose of any or all of the
Equipment securing such Schedule, whether or not in Lessor’s possession, in a
commercially reasonable manner at public or private sale with notice to Lessee
(the parties agreeing that ten (10) days’ prior written notice shall
constitute adequate notice of such sale), and apply the net proceeds of any
such disposition, after deducting all Equipment costs incurred by Lessor in
connection with such default to the obligations of Lessee hereunder and under
such Schedule, or proposed to retain any or all of the Equipment in full or
partial satisfaction, as the case may be, with Lessee remaining liable for any
deficiency. The sale, re-lease, or other disposition may, at Lessor’s sole
option, be conducted at Lessee’s premises. 
Lessor may at its sole discretion recover from Lessee liquidated damages
for the loss of a bargain and not as a penalty an amount equal to the Lessor’s
damages;

 

(13)                            if
Lessee breaches any of its obligations under Section 6(g) of this
Master Lease with regard to Software, Lessee shall be liable to Lessor for
additional damages in an amount equal to the original price paid by Lessor for
the Software, and in addition, at Lessor’s option, Lessor shall be entitled to
injunctive relief;

 

(14)                            exercise
any other right or remedy which may be available to it under the Uniform
Commercial Code or any other applicable law;

 

(15)                            a
cancellation hereunder shall occur only upon notice by Lessor and only as to such
items of Equipment as Lessor specifically elects to cancel and this Lease shall
continue in full force and effect as to the remaining items, if any;

 

(16)                            (i) by
notice to Lessee, declare any license agreement with respect to Software
terminated, in which event the right and license of Lessee to use the Software
shall immediately terminate, and Lessee shall thereupon cease all use of the
Software and return all copies thereof to Lessor or original licensor; (ii) have
access to and disable the Software by any means deemed necessary by Lessor, for
which purposes Lessee hereby expressly consents to such access and disablement,
promises to take no action that would prevent or interfere with Lessor’s
ability to perform such access and disablement, and waives and releases any and
all claims that it has or might otherwise have for any and all losses, damages,
expenses, or other detriment that it might suffer as a result of such access
and disablement; and (iii) Lessee agrees that the detriment which Lessor
will suffer as a result of a breach by Lessee of the obligations contained in
the Lease cannot be adequately compensated by monetary damages, and therefore
Lessor shall be entitled to injunctive and other equitable relief to enforce
the provisions of this paragraph.  LESSEE
AGREES THAT LESSOR SHALL HAVE NO DUTY TO MITIGATE LESSOR’S DAMAGES UNDER ANY
LEASE BY TAKING LEGAL ACTION TO RECOVER THE SOFTWARE FROM LESSEE OR ANY THIRD
PARTY, OR TO DISPOSE OF THE SOFTWARE BY SALE, RE-LEASE OR OTHERWISE.

 

10

 

(17)                            With
respect to any exercise by Lessor of its right to recover and/or dispose of any
Equipment securing Lessee’s obligations under any Schedule, Lessee acknowledges
and agrees as follows: (i) Lessor shall have no obligation, subject to the
requirements of commercial reasonableness, to clean-up or otherwise prepare the
Equipment for disposition; (ii) Lessor may comply with any applicable
State or Federal law requirements in connection with any disposition of the
Equipment, and any actions taken in connection therewith shall not be deemed to
have adversely affected the commercial reasonableness of any disposition of
such Equipment; (iii) Lessor may specifically disclaim any warranties of
title or the like with respect to the disposition of the Equipment; (iv) if
Lessor purchases any of the Equipment, Lessor may pay for the same by crediting
some or all of Lessee’s obligations hereunder or under any Schedule; and (v) no
right or remedy referred to in this Section is intended to be exclusive,
but each shall be cumulative and shall be in addition to any other remedy
referred to above or otherwise available at law or in equity, and may be
exercised concurrently or separately from time to time.

 

(b)                                 Lessor
may exercise any and all rights and remedies available at law or in equity,
including those available under the Uniform Commercial Code.  The rights and remedies afforded Lessor
hereunder shall not be deemed to be exclusive, but shall be in addition to any
rights or remedies provided by law. 
Lessor’s failure promptly to enforce any right or remedy hereunder shall
not operate as a waiver of such right or remedy, and Lessor’s waiver of any
default shall not constitute a waiver of any subsequent or other default.  Lessor may accept late payments or partial
payments of amounts due under the Lease and may delay enforcing any of Lessor’s
rights or remedies hereunder without losing or waiving any of Lessor’s rights
or remedies under the Lease.

 

17.                               LESSOR’S
TAX BENEFITS

 

Lessee acknowledges that Lessor shall be entitled to claim all tax
benefits, credits and deductions related to the Equipment for federal income
tax purposes including, without limitation: (i) deductions on Lessor’s
cost of the Equipment for each of its tax years during the term of the Lease
under any method of depreciation or other cost recovery formula permitted by
the Internal Revenue Code of 1986, as amended (“Code”), and (ii) interest
deductions as permitted by the Code on the aggregate interest paid to any
Assignee (hereinafter collectively called “Lessor’s Tax Benefits”).  Lessee agrees to take no action inconsistent
(including voluntary substitution of Equipment) with the foregoing or which
would result in the loss, disallowance, recapture or unavailability to Lessor
of Lessor’s Tax Benefits.  Lessee hereby
indemnifies Lessor and its Assignee(s) from and against (a) any loss,
disallowance, unavailability or recapture of Lessor’s Tax Benefits resulting
from any action or failure to act of Lessee, including replacement of the
Equipment, plus (b) all interest, penalties, costs (including attorney’s
fees), or additions to tax resulting from such loss, disallowance,
unavailability or recapture.

 

18.                               REPRESENTATIONS
AND WARRANTIES OF LESSEE

 

(a)                                  Lessee
represents and warrants to Lessor and its Assignee(s) as follows:

 

(1)                                  If
Lessee is a corporation, that it is duly organized and validly existing in good
standing under the laws of the jurisdiction of its incorporation, that it is
duly qualified to do business in each jurisdiction where any Equipment is, or
is to be located, and has full corporate power and authority to hold property
under lease and to enter into and perform its obligations under any Lease; that
the execution, delivery and performance by Lessee of any Lease has been duly
authorized by all necessary corporate action on the part of Lessee, and is not
inconsistent with its articles of incorporation or by-laws or other governing
instruments;

 

(2)                                  The
execution, delivery and performance by Lessee of any Lease does not violate any
law or governmental rule, regulation, or order applicable to Lessee, does not
and will not contravene any provision, or constitute a default under any
indenture, mortgage, contract, or other instrument to which it 

 

11

 

is bound and, upon execution and delivery of
each Lease, will constitute a legal, valid and binding agreement of Lessee,
enforceable in accordance with its terms;

 

(3)                                  No
action, including any permits or consents, in respect of or by any state,
federal or other governmental authority or agency is required with respect to
the execution, delivery and performance by Lessee of any Lease;

 

(4)                                  (i) Lessee’s
state of incorporation is the state listed in the introductory paragraph of
this Lease; (ii) Lessee’s chief executive office is located in the state
listed in the introductory paragraph of this Lease; (iii) Lessee is the
legal entity or organization indicated in the introductory paragraph of this
Lease, which organization is duly organized, validly existing and in good
standing under the laws of the state listed in the introductory paragraph of
this Lease; and (iv) Lessee’s full and exact legal name is the same as
listed in the introductory paragraph of this Lease.

 

(5)                                  Lessee does not owe any amount to, or have
any contract with or commitment to (including, without limitation, guaranties)
any of Lessee’s directors, officers, employees, vendors, customers,
consultants, parents, subsidiaries or affiliates (other than compensation for
current services not yet due and payable and reimbursement of expenses arising
in the ordinary course of Lessee’s particular business), and none of such
persons or entities owes any amount to Lessee. 
No part of the property or assets (including any item of leased
equipment or property) of any parent, subsidiary or affiliate of Lessee is used
by Lessee in its business.  Lessee has
disclosed to Lessor the identity of and basic contact information for, any
parent, subsidiary or affiliate of Lessee. 
Lessee has also disclosed to Lessor all contracts and commitments
(including, without limitation, guaranties) between Lessee and any of Lessees
directors, officers, employees, vendors, customers, consultants, parents,
subsidiaries or affiliates.

 

(6)                                  No lawsuit, action, administrative
proceeding, arbitration proceeding, bankruptcy filing, insolvency proceeding,
governmental investigation, or other legal or equitable proceeding of any kind
is pending or threatened, or to Lessee’s knowledge, contemplated, against
Lessee or any of Lessee’s property, or against any of Lessee’s parents,
subsidiaries or affiliates or their property, that might adversely affect the
operation of Lessee’s business or cause a material adverse change in Lessee’s
financial condition.

 

(7)                                  Lessee has disclosed to Lessor true, accurate
and complete information regarding Lessee’s indebtedness for borrowed money or
guarantees of any obligation or liability for any entity that may have a
material impact on the operation of Lessee’s business or Lessee’s financial
condition.  Lessee is not in default or
violation of any provision of any agreement or guarantee evidencing or relating
to its indebtedness for borrowed money.

 

(8)                                  All information and documents Lessee has
supplied to Lessor regarding or reflecting Lessee’s operations, business or
finances fairly represent the financial condition of Lessee and its business
operations for the periods covered and are true, accurate and complete in all
material respects.  The books, records
and accounts of Lessee fairly reflect all material transactions, all material
assets of Lessee and all material liabilities of Lessee.

 

(9)                                  No representation or warranty by Lessee in
this Master Lease or in any written information provided, or to be provided, to
Lessor contains or will contain any untrue statement of a material fact, or
omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading.

 

(b)                                 To
the extent permitted by applicable law, Lessee hereby waives any and all rights
and remedies conferred upon a Lessee by Sections 70A-2A-508 through 70A-2A-522
of the Utah Uniform Commercial Code, including but not limited to Lessee’s
rights to: (i) cancel the Lease; (ii) repudiate the Lease; (iii) revoke
acceptance of the

 

12

 

Equipment; (iv) claim, grant or permit a
security interest in the Equipment in Lessee’s possession or control for any
reason; (v) deduct all or any part of any claimed damages resulting from
Lessor’s default, if any, under the Lease; (vi) cover by making any
purchase or lease of or contract to purchase or lease property in substitution
for the Equipment due from Lessor; (vii) recover any general, special,
incidental or consequential damages, for any reason whatsoever.  To the extent permitted by applicable law,
Lessee also hereby waives any rights now or hereafter conferred by statute or
otherwise which may require Lessor to sell, lease or otherwise use any
Equipment in mitigation of Lessor’s Damages as set forth in Section 16
hereof or which may otherwise limit or modify any of Lessor’s rights or
remedies in that section.

 

19.                               GENERAL

 

(a)                                  This
Lease and all Schedules duly executed and attached hereto from time to time
constitute the entire agreement between the parties hereto with respect to the
Equipment, and any change or modification hereto and any related agreement must
be in writing and signed by the parties hereto. 
Notwithstanding the foregoing, Lessee authorizes Lessor to amend any Schedule to
identify more accurately the Equipment (including, without limitation,
supplying serial numbers or other identifying data), and such amendment shall
be binding on Lessor and Lessee unless Lessee objects thereto in writing within
ten 10 days after receiving notice of the amendment from Lessor.

 

(b)                                 There
shall be a single executed original of this Lease which shall be marked and for
the purposes hereof shall be referred to as the “Original”; all other
counterparts shall be marked “Duplicate”. 
To the extent, if any, that this Lease constitutes chattel paper (as
such term is defined in the Uniform Commercial Code as in effect in any
applicable jurisdiction) no security interest therein may be created through
the transfer or possession of this Lease or of any counterpart of this Lease
other than the Original, provided that if any Schedule to this Lease is
executed by the parties hereto, (i) each such Schedule shall
constitute a new lease between the parties; (ii) there shall be a single
executed original of each such Schedule marked “Original”; (iii) all
other counterparts of such Schedule shall be marked “Duplicate”; and (iv) to
the extent, if any, that any such Schedule constitutes chattel paper (as
defined above) no security interest therein may be created through the transfer
or possession of the Original of this Lease or any counterpart of such Schedule other
than the Original of such Schedule.

 

(c)                                  Notices
or demands required to be given hereunder shall be in writing and shall be
delivered in person or sent by certified mail, return receipt requested, or by
courier service to the address of the other party set forth in the introduction
of this Master Lease or to such other address as such party shall have
designated by proper notice.

 

(d)                                 Upon
the completion of the Base Term of any Lease, Lessee shall, provided at least
one hundred eighty (180) days prior written notice is received by Lessor from
Lessee via certified mail, elect one of the following options: (i) purchase
all, but not less than all, of the Items of Equipment for a price to be agreed
upon by both Lessor and any applicable Assignee and Lessee, (ii) extend
the Lease for twelve (12) additional months at the rate specified on the
respective Schedule, or (iii) return the Equipment to Lessor at Lessee’s
expense to a destination within the continental United States specified by
Lessor and terminate the Schedule; provided, however, that for option (iii) to
apply, all accrued but unpaid late charges, interest, taxes, penalties, and any
and all other sums due and owing under the Schedule must first be paid in
full, Lessee shall have complied with the provisions of Sections 6(b), (c), (g) and
Section 7 hereof must be specifically complied with, and Lessee must enter
into a new Schedule with Lessor to lease Equipment which replaces the
Equipment listed on the old Schedule. 
With respect to options (i) and (iii), each party shall have the
right in its absolute and sole discretion to accept or reject any terms of
purchase or of any new Schedule, as applicable. 
In the event Lessor and Lessee have not agreed to either option (i) or
(iii) by the end of the Base Term or if Lessee fails to give written
notice of its election via certified mail at least one hundred eighty (180)
days prior to the termination of the Base Term, then option (ii) shall
apply at the end of the Base Term.  At
the conclusion of the extension period provided for in option (ii) above,
the Lease shall continue in effect at the rate specified in the respective Schedule for
successive periods of six (6) months each subject to

 

13

 

termination at the end of any such successive
six-month renewal period by either Lessor or Lessee giving to the other party
at least one hundred eighty (180) days prior written notice of termination.

 

(e)                                  Time
is of the essence with respect to any Lease. 
The provisions contained in any agreement shall be deemed to be
independent and severable.  The
invalidity or partial invalidity of any one provision or portion of the Lease
under the laws of any jurisdiction shall not affect the validity or
enforceability of any other provisions of the Lease.  The captions and headings set forth herein
are for convenience of reference only and shall not define or limit any of the
terms hereof.

 

(f)                                    THIS
LEASE SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF UTAH, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE.  LESSEE AGREES TO SUBMIT TO
THE JURISDICTION OF THE STATE AND/OR FEDERAL COURTS IN THE STATE OF UTAH IN ALL
MATTERS RELATING TO THE LEASE, THE EQUIPMENT AND THE CONDUCT OF THE
RELATIONSHIP BETWEEN LESSOR AND LESSEE. 
THIS LEASE WAS EXECUTED IN THE STATE OF UTAH (BY THE LESSOR HAVING
COUNTERSIGNED IT IN UTAH) AND IS TO BE PERFORMED IN THE STATE OF UTAH (BY
REASON OF ONE OR MORE PAYMENTS REQUIRED TO BE MADE TO LESSOR IN UTAH).  LESSOR AND LESSEE HEREBY WAIVE THE RIGHT TO
TRIAL BY JURY OF ANY MATTERS ARISING OUT OF THE LEASE OR EQUIPMENT OR THE CONDUCT
OF THE RELATIONSHIP BETWEEN LESSOR AND LESSEE.

 

(g)                                 If
Lessee fails to sign and deliver an Acceptance Certificate, then except as
otherwise provided in Section 3 or 2(a) hereof, the Acceptance Date
shall be a date determined by Lessor which shall be no sooner than the date
Lessee receives substantially all of the Equipment.

 

(h)                                 The
parties acknowledge and agree that this is a “true lease” and title to the
leased Equipment is vested in the Lessor. 
In the event a court of competent jurisdiction or other governing
authority shall determine that the Lease is not a “true lease” or is a lease
intended as security or that Lessor (or its assigns) does not hold legal title
to or is not the owner of the Equipment, the following shall apply:

 

(1)                                  Effective
the execution date of the Lease, Lessee, as debtor, grants a security interest
to Lessor, as secured party, in the Equipment, including all Items and other
personal property, general intangibles, and accessions to and proceeds of any
of the foregoing, to secure all duties and obligations of Lessee under any
Lease or other agreement with Lessor. 
The Lease shall be deemed to be a security agreement with Lessee having
granted to Lessor a security interest in the Equipment, and the Equipment shall
secure all duties and obligations of Lessee under any Lease or other agreement
with Lessor.  With regard to any security
interest created hereunder in any of the Equipment, Lessee consents and agrees
that Lessor shall have all of the rights, privileges and remedies of a secured
party under the Utah Uniform Commercial Code.

 

(2)                                  Lessee
authorizes Lessor to file financing statements and any records describing the
Equipment and to take any and all actions necessary to perfect Lessor’s
interest in the Equipment.  Lessee agrees
to execute any further documents, and to take any further actions, reasonably
requested by Lessor to evidence or perfect the security interest granted under
this subpart of the Lease, to maintain the first priority of the security
interests, or to effectuate the rights granted to Lessor under this subpart of
the Lease.

 

(i)                                     Lessor’s
obligations under each Schedule are conditioned upon Lessor’s receipt of
and determination that the following are satisfactory to Lessor:  (a) lien searches in the jurisdiction of
Lessee’s organization and in each jurisdiction in which the Equipment and/or
Lessee’s chief executive office are located; (b) if requested by Lessor, a
certified copy of Lessee’s organizational documents; and (c) if requested
by Lessor, certificates of good standing from the jurisdiction of Lessee’s
organization and evidence of Lessee’s organizational number.

 

14

 

(j)                                     Lessee,
and any guarantor, shall provide to Lessor a copy of its annual audited
financial statements within ninety (90) days after its fiscal year end, and a
copy of its quarterly unaudited financial statements within forty-five (45)
days after the end of each fiscal quarter.

 

(k)                                  In
the event two or more parties execute this Master Lease as Lessee, each party
shall be jointly and severally liable for all Lessee representations,
warranties, and obligations (including without limitation, payment obligations)
under this Master Lease or under any Schedule or other document executed
in connection herewith.

 

(l)                                     Lessee
agrees that it will not, through any of its actions or omissions, cause any
document, or any portion of any document, associated with any Lease to be
delivered, disseminated, or otherwise fall into the possession of anyone not
employed by Lessee on a full time basis, without the written consent of
Lessor.  Lessee further acknowledges that
any such unauthorized delivery or dissemination could cause Lessor to suffer
irreparable economic harm.

 

(m)                               If
Lessee fails to perform or comply with any of its agreements contained herein,
Lessor may perform or comply with such agreements and the amount of any
payments and expenses of Lessor incurred in connection with such performance or
compliance (including attorney fees), together with interest thereon at the
lesser of the rate of eighteen percent (18%) per annum, or the highest rate
permitted by law shall be deemed additional rent payable by Lessee upon demand,
if Lessee is in default under any Lease.

 

(n)                                 Lessee
shall reimburse Lessor for all reasonable charges, costs, expenses and attorney
fees incurred by Lessor:  (i) in
preparation of Lease documentation; (ii) in defending or protecting its
interest in the Equipment; (iii) in the enforcement of the Lease or the
collection of any rent or other payments due under the Lease, or the preparation
of any amendments or settlement agreements prepared in connection with the
Lease; and (iv) in any lawsuit or other legal or arbitration/mediation
proceeding to which the Lease gives rise, including without limitation, actions
in tort.

 

(o)                                 Lessee
will cooperate with Lessor in protecting Lessor’s interests in the Equipment,
the Lease and the amounts due under the Lease. 
Lessee will promptly execute, or otherwise authenticate, and deliver to
Lessor such further documents, instruments, assurances and other records, and
take such further action as Lessor may reasonably request in order to carry out
the intent and purpose of this Lease and to establish and protect the rights
and remedies created or intended to be created in favor of Lessor under this
Lease.  Lessee hereby authorizes Lessor
to file UCC financing statements and fixture filings, requested real property
waivers, and all other filings and recordings, as may be deemed necessary by
Lessor.  Lessee hereby authorizes and/or
ratifies the filing of any UCC-1 financing statements by Lessor before or after
the execution of this Lease.  Lessee
shall pay all costs of filing any financing, continuation or termination
statements with respect to the Equipment and Lease, including without
limitation, any intangibles tax, documentary stamp tax or other similar taxes
or charges relating thereto and all costs of UCC or other lien searches and of
obtaining and filing any full or partial third-party releases deemed necessary
or advisable by Lessor.  Lessee will do whatever
may be necessary or advisable to have a statement of the interest of Lessor in
the Equipment noted on any certificate of title relating to the Equipment and
will deposit said certificate with Lessor. 
Lessee grants to Lessor a security interest in all deposits and other
property transferred or pledged to Lessor to secure the payment and performance
of all of Lessee’s obligations under the Lease.   Lessor is authorized to take any measures
necessary to protect its interest in the Equipment.   In the event the Equipment is in the
possession of a third party, Lessee will join with Lessor in notifying the
third party of Lessor’s interest in the Equipment and obtaining an
acknowledgment from the third party that the third party is holding the
Equipment for the benefit of Lessor.

 

(p)                                 Lessee
hereby authorizes and appoints Lessor and Lessor’s agents and assigns as Lessee’s
attorney-in-fact to execute acknowledgement letters and other documents
required to be executed by Lessee to effect any underwriting or perfect any
security interest with regard to a Schedule.

 

15

 

IN WITNESS WHEREOF,
Lessor and Lessee, through their respective duly authorized and acting
representatives, have signed and executed this Master Lease as of the day and
date first above written.

 

	
  LESSOR:

  	
  LESSEE

  
	
   

  	
   

  
	
  TETRA FINANCIAL GROUP, L.L.C.

  	
  SENTO CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
  Scott R.
  Scharman

  	
   

  	
  NAME:

  	
  Anthony J.
  Sansone

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
  Executive
  Vice President

  	
   

  	
  TITLE:

  	
  Senior Vice
  President/CFO

  	
   

  
								

 

16

 

AMENDED
AND RESTATED

LEASE SCHEDULE NO. 1

TO

MASTER
LEASE AGREEMENT NO. TFG/SC 121405

 

	
  LESSEE:

  	
   

  	
  LESSOR:

  
	
   

  	
   

  	
   

  
	
  Sento
  Corporation

  	
   

  	
  Tetra Financial
  Group, L.L.C.

  
	
  420 E. South
  Temple, Suite 400

  	
   

  	
  6925 Union
  Park Center, Suite 525

  
	
  Salt Lake
  City, UT 84111

  	
   

  	
  Midvale, UT
  84047

  

 

1.               Equipment:  Cisco Network Equipment, Verint Screen
Recording Software, Nextira Solutions Data Switches as more fully described on
the attached Exhibit A which by this reference is made a part hereof.

 

2.               Equipment
Location:  Various locations as more
fully described on the attached Exhibit A which by this reference is made
a part hereof.

 

3.               Acceptance
Date:  As specified in the Acceptance
Certificate

 

4.               Base Term:  Twelve (12) quarters starting on the
Commencement Date

 

5.               Base Quarterly
Rental:  $49,385.54, plus applicable
sales tax.  Payments will be transferred
electronically from your account using Automated Clearing House (“ACH”)

 

6.               Deposit:  $49,385.54 to be applied to last billing
period

 

7.               Total Equipment Cost:  $558,281.00

 

8.               Base Lease Rate
Factor:  .08846

 

9.               Representation of
Lessee:  Lessor and Lessee agree that
this Lease Schedule constitutes a “finance lease” under the Uniform
Commercial Code – Article 2A, in that (a) Lessee has selected the
Property in its sole discretion, (b) Lessor has acquired the Property
solely for purposes of leasing such Property under this Lease Schedule, and (c) Lessee
has received a copy of the contract evidencing Lessor’s purchase of the
Property.

 

This Amended
and Restated Lease Schedule No. 1 incorporates by reference the terms
and conditions of Master Lease Agreement No. TFG/SC 121405 dated December 14,
2005 (the “Master Lease”), Exhibit A (the “Equipment Description”) and Exhibit B
(the “Casualty Loss Schedule”), and constitutes a separate “Lease” between
Lessor and Lessee. All capitalized terms used herein but not defined herein
shall have the same meanings ascribed to them in the Master Lease.  This Amended and Restated Lease Schedule No. 1
supercedes and replaces Lease Schedule No. 1 dated as of the 14th day
of December, 2005.

 

IN WITNESS WHEREOF,   the parties have
executed this Amended and Restated Lease Schedule as of the 6th day of
February, 2006.

 

	
  LESSOR:

  	
  LESSEE:

  
	
   

  	
   

  
	
  TETRA FINANCIAL GROUP, L.L.C.

  	
  SENTO CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Scott R. Scharman

  	
   

  	
  Name:

  	
  Anthony J. Sansone

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice
  President

  	
   

  	
  Title

  	
  Senior Vice
  President/CFOExhibit 10.8

 

	
  

  	
   

  	
  MASTER LEASE AGREEMENT

  
	
   

  	
  NO.

  
	
   

  	
  Effective
  Date: October 07, 2005

  

 

	
  Lessor: DELL FINANCIAL
  SERVICES L.P.

  	
   

  	
  Lessee: Sento Corporation

  
	
   

  	
   

  	
  420 E SOUTH TEMPLE STE 400

  
	
  Payment Address:

  	
   

  	
  SALT LAKE CITY, UT 84111

  
	
  PO Box. 3355

  	
   

  	
  Fax: NA

  
	
  Chicago, Illinois

  60693

  	
   

  	
  Attention: LINDEN BARNEY

  

 

This Master Lease Agreement (“Agreement”),
effective as of the Effective Date set forth above, is between the Lessor and
Lessee named above. Capitalized terms have the meaning set forth in this
Agreement.

 

1. LEASE.

 

Lessor hereby leases to Lessee and Lessee hereby
leases from Lessor the equipment (“Products”), software, services or fees
described in any lease schedule (“Schedule”). Each Schedule shall incorporate
by reference the terms and conditions of this Agreement and contain such other
terms as are agreed by Lessee and Lessor. Each Schedule signed or otherwise
authenticated by Lessee and Lessor shall constitute a separate lease of
Products (“Lease”). In the event of any conflict between the terms of a
Schedule and the terms of this Agreement, the terms of the Schedule shall
prevail. Lessor reserves all rights to the Products not specifically granted to
Lessee in this Agreement or in a Schedule. Execution of this Agreement does not
create an obligation of either party to lease to or from the other.

 

2. ACCEPTANCE DATE; SCHEDULE.

 

(a) Subject to any right of return provided
by the Product seller (“Seller”), named on the Schedule, Products are deemed to
have been irrevocably accepted by Lessee upon delivery to Lessee’s ship to
location (“Acceptance Date”). Lessee shall be solely responsible for unpacking,
inspecting and installing the Products.

 

(b) Lessor shall deliver to Lessee a Schedule
for the Products. Lessee agrees to sign or otherwise authenticate and return
each Schedule by the later of the Acceptance Date or 5 days after Lessee
receives a Schedule from Lessor. If  the
Schedule is not signed or otherwise authenticated by Lessee and returned to
Lessor within the time provided in the prior sentence, then upon written notice
from Lessor and Lessee’s failure to cure within 5 days of such notice, Lessor
may require the Lessee to purchase the Products by paying the Product cost
charged by the Seller, plus any shipping charges, Taxes and Duties (defined
below) and interest at the Overdue Rate (defined below) accruing from the date
the Products are shipped through the date of payment. If Lessee returns any
leased Products in accordance with the Seller’s return policy, it will notify
Lessor. When Lessor receives a credit from Seller for the returned Product, the
Schedule will be deemed amended to reflect the return of the Product and Lessor
will adjust its billing records and Lessee’s Invoice for the applicable Lease.
In addition, Lessee and Lessor agree that a signed Schedule may be amended by
written notice from Lessor to Lessee provided such notice is (i) to correct the
serial (or service tag) number of Products or (ii) to adjust the related Rent
(defined below) on the Schedule (any increase up to 15% or any decrease) caused
by any change made by Lessee in Lessee’s order with the Seller, or any change
in the Product cost charged by the Seller.

 

3. TERM.

 

The initial term (“Primary Term”) for each
Lease shall begin on the date set forth on the Schedule as the Commencement Date
(“Commencement Date”) and continue for the number of months set forth in the
Schedule. The period beginning on the Acceptance Date and ending on the last
day of the Primary Term, together with any renewals or extensions thereof, is
defined as the “Lease Term”. The Lease is non-cancelable by Lessee.

 

4. RENT; TAXES; PAYMENT
OBLIGATION.

 

(a) The rental payment amount (“Rent”) and
the payment period for each installment of Rent (“Payment Period”) shall be
stated in the Schedule. A prorated portion of Rent, calculated on a 30-day
month, 90-day quarter or 360-day year as appropriate, for the period from the
Acceptance Date to the Commencement Date shall be added to the first payment of
Rent. All Rent and other amounts due and payable under this Agreement or any
Schedule shall be paid to Lessor in lawful funds of the United States of
America at the payment address set forth above or at such other address as
Lessor may designate from time to time in writing. Whenever Rent and other
amounts payable under a Lease are not paid when due, Lessee shall pay interest
on such amounts at a rate equal to the lesser of 1-1/2% per month or the
highest rate permitted by applicable law (“Overdue Rate”). Rent shall be due
and payable whether or not Lessee has received an invoice showing that such
Rent is due.

 

(b) Each Lease shall be a net lease. In
addition to Rent, Lessee shall pay sales, use, property, added value or other
taxes, fees, levies or assessments (collectively, “Taxes”), and customs, duties
or surcharges on imports or exports (collectively, “Duties”) plus all expenses
incurred in connection with Lessor’s purchase of the Products, including but
not limited to shipment, delivery, installation, and insurance. Unless Lessee provides Lessor with a valid tax exemption certificate
prior to Lessor’s payment of such Taxes. Lessee shall pay Lessor all
Taxes upon demand by Lessor. Unless otherwise set forth in the Schedule and
where applicable. Lessee agrees to pay a periodic personal property tax fee (“PPT
Fee”) calculated by Lessor as a prorated portion of the annual estimated
personal property tax assessed by the applicable taxing authority on the
Products during the Lease Term. The PPT Fee shall be payable with each
installment of Rent.

 

(c) LESSEE’S OBLIGATION TO PAY ALL RENT AND
OTHER AMOUNTS WHEN DUE AND TO OTHERWISE PERFORM AS REQUIRED UNDER THIS
AGREEMENT AND EACH SCHEDULE SHALL BE ABSOLUTE AND UNCONDITIONAL, AND SHALL NOT
BE SUBJECT TO ANY ABATEMENT, REDUCTION, SET-OFF, DEFENSE, COUNTERCLAIM,
INTERRUPTION, DEFERMENT OR RECOUPMENT FOR ANY REASON WHATSOEVER WHETHER ARISING
OUT OF ANY CLAIMS BY LESSEE AGAINST LESSOR, SELLER, OR THE SUPPLIER OR
MANUFACTURER OF THE PRODUCTS. TOTAL OR PARTIAL LOSS OF THE PRODUCTS OR THEIR
USE OR POSSESSION, OR OTHERWISE. If any Product is unsatisfactory for any
reason, Lessee shall make its claim solely against the Seller of such Product
(or the Licensor in the case of Software, each as defined below) and shall,
nevertheless, pay Lessor or its assignee all amounts due and payable under the
Lease.

 

5. LICENSED MATERIALS.

 

Software means any operating system software
or computer programs included with the Products (collectively, “Software”). “Licensed
Materials” are any manuals and documents, end user license agreements, evidence
of licenses, including, without limitation, any certificate of authenticity and
other media provided in connection with such Software, all as delivered with or
affixed as a label to the Products. Lessee agrees that this Agreement and any
Lease (including the sale of any Product pursuant to any purchase option) does
not grant any title or interest in Software or Licensed Materials. Any use of
the terms “sell,” “purchase,” “license,” “lease,” and the like in this
Agreement or any Schedule with respect to Software shall be interpreted in
accordance with this Section 5.

 

1

 

6. USE; LOCATION; INSPECTION.

 

Lessee shall: (a) comply with all terms and
conditions of any Licensed Materials; and (b) possess and operate the Products
only (i) in accordance with the Seller’s supply contract and any service
provider’s maintenance and operating manuals, documentation and applicable
laws; and (ii) for the business purposes of Lessee.  Lessee agrees not to move Products from the
location specified in the Schedule without providing Lessor with at least 30
days prior written notice, and then only to a location within the United States
and at Lessee’s expense.  Without notice
to Lessor, Lessee may temporarily use laptop computers at other locations,
including outside of the United States, provided Lessee complies with the
United States Export Control Administration Act of 1979 and the Export
Administration Act of 1985, as those Acts are amended from time to time (or any
successor or similar legislation). 
Provided Lessor complies with Lessee’s reasonable security requirements,
Lessee shall allow Lessor to inspect the premises where the Products are
located from time to time during reasonable hours after reasonable notice in
order to confirm Lessee’s compliance with its obligations under this Agreement.

 

7. RETURN.

 

At the expiration or earlier termination of
the Lease Term of any Schedule, and except for Products purchased pursuant to
any purchase option under the Lease, Lessee will (a) remove all proprietary
data from the Products and (b) return them to Lessor at a place within the contiguous
United States designated by Lessor.  Upon
return of the Products, Lessee’s right to the operating system Software in
returned Products will terminate and Lessee will return the Products with the
original certificate of authenticity (attached and unaltered) for the original
operating system Software.  Lessee agrees
to deinstall and package the Products for return in a manner which will protect
them from damage.  Lessee shall pay all
costs associated with the packing and return of the Products and shall promptly
reimburse Lessor for all costs and expenses for missing or damaged Products or
operating system Software.  If Lessee fails
to return all of the Products at the expiration of any applicable Lease Term,
the Lease Term with respect to the Products that are not returned shall
continue to be renewed as described in the Schedule.

 

8. RISK OF LOSS; MAINTENANCE;
INSURANCE.

 

(a) From the date the Products are delivered
to Lessee’s ship to location until the Products are returned to Lessor’s
designated return location or purchased by Lessee, Lessee agrees: (i) to assume
the risk of loss or damage to the Products; (ii) to maintain the Products in
good operating condition and appearance, ordinary wear and tear excepted; (iii)
to comply with all requirements necessary to enforce all warranty rights; and
(iv) to promptly repair any repairable damage to the Products.  For the Lease Term, Lessee shall ensure that
the Products are (i) covered by a manufacturer approved maintenance agreement,
or (ii) with Lessor’s prior consent, self maintained in accordance with the
standards set forth herein. At all times, Lessee shall provide the following
insurance: (i) casualty loss insurance for the Products for no less than the
Stipulated Loss Value (defined below) naming Lessor as loss payee; and (ii)
liability insurance with respect to the Products in an amount as required by
Lessor, naming Lessor as an additional insured. Upon Lessor’s prior written
consent, Lessee may provide this insurance pursuant to Lessee’s existing self
insurance policy. Lessee shall either provide Lessor with an annual certificate
of third party insurance or a written description of its self insurance policy,
as applicable.  The certificate of
insurance will provide that Lessor shall receive at least ten (10) days prior
written notice of any material change to or cancellation of the insurance
policy.

 

(b) If the Products are lost, stolen,
destroyed, damaged beyond repair or in the event of any condemnation, confiscation,
seizure or expropriation of any Products. 
(“Casualty Products”), Lessee shall promptly (i) notify Lessor of the
same, and (ii) pay to Lessor the Stipulated Loss Value for the Casualty
Products.  The “Stipulated Loss Value” of
any Product is an amount equal to the sum of (a) all Rent and other amounts
then due and owing (including interest at the Overdue Rate from the due date
until payment is received) under the Lease, plus (b) the present value of all
future Rent to become due under the Lease during the remainder of the Lease
Term, plus (c) the present value of the estimated in place Fair Market Value of
the Product at the end of the Primary Term as determined by Lessor.  Each of (b) and (c) shall be calculated using
the discount rate of the Federal Reserve Bank of Chicago on the Commencement
Date of the applicable Schedule.

 

9. ALTERATIONS.

 

Lessee shall, at its expense, make such
alterations to Products during the Lease Term as are legally required or
provided at no charge by Seller.  Lessee
may make other alterations, additions or improvements to Products provided that
any alteration, addition or improvement shall be readily removable and shall
not materially impair the value or utility of the Product.  Upon the return of any Product to Lessor, any
alteration, addition or improvement that is not removed by Lessee shall become
the property of Lessor, free and clear of all liens and encumbrances.

 

10. REPRESENTATIONS AND
WARRANTIES OF LESSEE.

 

(a) Lessee represents, warrants and covenants
to Lessor at the time Lessee enters into this Agreement and each Schedule that:

 

(i) Lessee is an entity duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and in all jurisdictions with respect to which
its ownership or its conduct of business or leasing of property requires such
qualification;

 

(ii) The execution and
delivery of and performance under this Agreement, any Schedules, Certificates
of Incumbency or other documents related to a Lease (“Documents”) to which
Lessee is a party have been authorized by all necessary action, and have been
executed and delivered on Lessee’s behalf by persons duly authorized in that
regard.  The Documents constitute legal,
valid and binding agreements of Lessee, enforceable against Lessee in
accordance with their respective terms except as limited by bankruptcy or other
similar laws;

 

(iii) The execution and
delivery of or performance under the Documents do not contravene Lessee’s
charter or bylaws or any law, regulation, order, writ, decree, judgment, or
other form of prohibition of which Lessee is aware is binding on it or its
assets; and does not and will not contravene the provisions of, or constitute a
default under, or result in the creation of a lien upon the Products under any
material indenture, mortgage, contract, or other instrument to which it is a
party or by which it or its assets are bound;

 

(iv) To the best of Lessee’s
knowledge, there is no action, suit or proceeding pending or, to the knowledge
of Lessee, threatened in any court or tribunal or before any competent
authority against Lessee or any of its property or assets which challenges the
Documents or any of the transactions contemplated hereunder or which may have a
material adverse effect on the financial condition or business of Lessee; and

 

(v) The financial statements
and other information furnished and to be furnished to Lessor by Lessee are and
shall be true and correct in all material respects, and since the date that
such financial statements or information were prepared, there has not been any
material adverse change in Lessee’s business or condition, financial or
otherwise.

 

(b) If any person guarantees payment or
performance by Lessee of any liabilities or obligations of Lessee under this
Agreement or any Schedule (a “Guarantor”), the preceding representations,
warranties and covenants shall be deemed to be made by Lessee on behalf of such
Guarantor as if such Guarantor were named in addition to Lessee therein.

 

11. WARRANTY ASSIGNMENT;
EXCLUSION OF WARRANTIES; LIMITATION OF LIABILITY; FINANCE LEASE.

 

(a) Provided no Event of Default has occurred
and is continuing.  Lessor assigns to
Lessee for the Lease Term the benefit of any Product warranty and any right of
return provided by any Seller.

 

(b) LESSEE ACKNOWLEDGES THAT LESSOR DID NOT
SELECT, MANUFACTURE, SUPPLY OR LICENSE ANY PRODUCT AND THAT LESSEE HAS MADE THE
SELECTION OF PRODUCTS BASED UPON ITS OWN JUDGMENT AND EXPRESSLY DISCLAIMS ANY
RELIANCE ON STATEMENTS MADE BY LESSOR OR ITS AGENTS.  LESSOR LEASES THE PRODUCTS AS-IS AND MAKES NO
WARRANTY, EXPRESS, IMPLIED, OR OTHERWISE, INCLUDING, BUT NOT LIMITED TO, ANY
WARRANTIES OF DESIGN, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR
PURPOSE.  LESSEE HEREBY WAIVES ANY CLAIM
IT MIGHT HAVE AGAINST LESSOR OR ITS ASSIGNEE FOR ANY LOSS, DAMAGE OR EXPENSE
CAUSED BY OR WITH RESPECT TO ANY PRODUCTS.

 

2

 

(c) IN NO EVENT SHALL LESSOR BE LIABLE FOR
ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR
RELATED TO THIS AGREEMENT, ANY SCHEDULE OR THE SALE, LEASE OR USE OF ANY
PRODUCTS.  EVEN IF LESSOR IS ADVISED IN
ADVANCE OF THE POSSIBILITY OR CERTAINTY OF SUCH DAMAGES AND EVEN IF LESSEE
ASSERTS OR ESTABLISHES A FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY
PROVIDED IN THIS AGREEMENT.

 

(d) Lessee agrees that it is the intent of
both parties that each Lease qualify as a statutory finance lease under Article
2A of the Uniform Commercial Code (“UCC”).  Lessee acknowledges either (i) that Lessee has
reviewed and approved any written supply contract covering the Products
purchased from the Seller for lease to Lessee or (ii) that Lessor has informed
or advised Lessee, in writing, either previously or by this Agreement, that
Lessee may have rights under the supply contract evidencing the purchase of the
Products and that Lessee should contact the Seller for a description of any
such rights.  TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, LESSEE HEREBY WAIVES ALL RIGHTS AND REMEDIES
CONFERRED UPON A LESSEE BY ARTICLE 2A of the UCC.

 

12. EVENTS OF DEFAULT.

 

It shall be an event of default hereunder and
under any Schedule (“Event of Default”) if:

 

(a) Lessee fails to pay any Rent or other
amounts payable under this Agreement or any Schedule within 15 days after the
date that such payment is due;

 

(b) Any representation or warranty made by
Lessee or any Guarantor to Lessor in connection with this Agreement, any
Schedule or any other Document is at the time made materially untrue or
incorrect;

 

(c) Lessee fails to comply with any other
obligation or provision of this Agreement or any Schedule and such failure
shall have continued for 30 days after notice from Lessor;

 

(d) Lessee (i) is generally not paying its debt
as they become due or (ii) takes action for the purpose of invoking the protection
of any bankruptcy or insolvency law, or any such law is invoked against or with
respect to Lessee or its property and such petition is not dismissed within 60
days; or

 

(e) Lessee or any Guarantor is in default
under any other lease, contract, or obligation now existing or hereafter
entered into with Lessor or Seller or any assignee of Lessor.

 

13. REMEDIES.

 

(a) Upon an Event of Default under any
Schedule, all of Lessee’s rights (including its rights to the Products), but
not its obligations thereunder, shall automatically be cancelled without notice
and Lessor may exercise one or more of the following remedies in its sole
discretion:

 

(i) require
Lessee to return any or all Products as provided in Section 7 and/or if
requested by Lessor, assemble the Products in a single location designated by
Lessor granting Lessor the right to enter the premises where such Products are
located for the purpose of repossession;

 

(ii) sell, lease or
otherwise dispose of any or all Products (as agent and attorney-in-fact for Lessee
to the extent necessary) upon such terms and in such manner (at public or
private sale) as Lessor deems advisable in its sole discretion (a “Disposition”);

 

(iii) declare immediately
due and payable as a pre-estimate of liquidated damages for loss of bargain and
not as a penalty, the Stipulated Loss Value of the Products in lieu of any
further Rent, in which event Lessee shall pay such amount to Lessor within 10
days after the date of Lessor’s demand; or

 

(iv) proceed by appropriate
court action either at law or in equity (including an action for specific
performance) to enforce performance by Lessee or recover damages associated
with such Event of Default or exercise any other remedy available to Lessor in
law or in equity.

 

(b) Lessee shall pay all costs incurred by
Lessor in connection with an Event of Default, including reasonable legal fees
and expenses, and all costs related to the repossession, transportation, re-furnishing,
storage and Disposition of any or all Products (“Default Expenses”).  In the event Lessor recovers proceeds from
its Disposition of the Products, Lessor shall credit such proceeds (net of
Default Expenses) against the owed Stipulated Loss Value.  Lessee shall remain liable to Lessor for any
deficiency.  With respect to the Section,
to the extent the proceeds of a Disposition (net of Default Expenses) exceed
the Stipulated Loss Value owed under the Lease, or if Lessee has paid Lessor
the Stipulated Loss Value, the Default Expenses and all other amounts owing
under the Lease, Lessee shall be entitled to such excess and shall have no
further obligations with respect to such Lease. 
All rights of Lessor are cumulative and not alternative and may be
exercised by Lessor separately or together.

 

14. QUIET ENJOYMENT.

 

Lessor shall not interfere with Lessee’s
right to possession and quiet enjoyment of Products during the relevant Lease
Term, provided no Event of Default has occurred and is continuing.  Lessor represents and warrants that as of the
Commencement Date of the applicable Schedule.  Lessor has the right to lease the Products to
Lessee.

 

15. INDEMNIFICATION.

 

Lessee shall indemnify, defend and hold
Lessor, its assignees, and their respective officers, directors, employees,
representatives and agents harmless from and against all claims, liabilities,
costs or expenses, including legal fees and expenses (collectively, “Claims”),
arising from or incurred in connection with this Agreement, any Schedule, or
the selection, manufacture, possession, ownership, use, condition, or return of
any Products (including Claims for personal injury, death or damage to
property) and, to the extent Lessee is responsible, Claims related to the
subsequent use or Disposition of the Products or any date in or alteration of
the Products.  This indemnity shall not
extend to any Claim caused solely by the gross negligence or willful misconduct
of Lessor. Lessee shall be responsible for the defense and resolution of such
Claim at its expense and shall pay any amount for resolution and all costs and
damages awarded against or incurred by Lessor or any other person indemnified
hereunder: provided, however, that any person indemnified hereunder shall have
the right to participate in the defense of such Claim with counsel of its choice
and at its expense and to reasonably approve any such settlement.  Lessee shall keep Lessor informed at all
times as to the statue of the Claim.

 

16. OWNERSHIP; LIENS AND ENCUMBRANCES;
LABELS.

 

As between Lessor and Lessee, title to
Products (other than any Licensed Materials) is and shall remain with Lessor.  Products are considered personal property and
Lessee shall, at Lessee’s expense, keep Products free and clear of liens and
encumbrances of any kind (except those arising through the acts of Lessor) and
shall immediately notify Lessor if Lessor’s interest is subject to
compromise.  Lessee shall not remove,
cover or alter plates, labels, or other markings placed upon Products by
Lessor, Seller or any other supplier.

 

17. NON PERFORMANCE BY LESSEE.

 

If Lessee fails to perform any of its
obligations hereunder or under any Schedule, Lessor shall have the right but
not the obligation to effect such performance and Lessee
shall promptly reimburse Lessor for all out of pocket and other reasonable
expenses incurred in connection with such performance, with interest at the
Overdue Rate.

 

18. NOTICES.

 

All notices shall be given in writing and,
except for billings and communications in the ordinary course of business,
shall be delivered by overnight courier service, delivered personally or sent
by certified mail, return receipt requested and shall be effective from the
date of receipt unless mailed, in which case the effective date will be 4
Business Days after the date of mailing, Notices to Lessor by Lessee shall be
sent to:  Dell Financial Services
L.P.,  Legal Department, One Dell Way,
Round Rock, TX 78682, or such other mailing address designated in writing by
Lessor, Notice to Lessee shall be to the address on the first page of this
Agreement or such other mailing address designated in writing by Lessee.

 

3

 

19. ASSIGNMENT.

 

(a) LESSEE MAY ASSIGN THIS AGREEMENT OR ANY
SCHEDULE OR SUBLEASE ANY PRODUCT(S) WITH THE PRIOR WRITTEN CONSENT OF LESSOR
(SUCH CONSENT NOT TO BE UNREASONABLY WITHHELD), LESSOR, AT ITS SOLE DISCRETION,
MAY ASSESS AN ADMINISTRATIVE FEE FOR ANY APPROVED ASSIGNMENT OR SUBLEASE. No
assignment or sublease shall in any way discharge Lessee’s obligations to
Lessor under this Agreement or any Schedule.

 

(b) Lessor may at any time and without
notice, but subject to the rights of Lessee, transfer, assign, or grant a
security interest in any Product, this Agreement, any Schedule, or any rights
and obligations hereunder or thereunder, in whole or in part.

 

(c) Subject to the foregoing, this Agreement
and each Schedule shall be binding upon and inure to the benefit of Lessor, Lessee
and their successors and assigns.

 

20. GOVERNING LAW; JURISDICTION AND
VENUE; WAIVER OF JURY TRIAL.

 

THIS AGREEMENT AND EACH SCHEDULE SHALL BE
GOVERNED BY ILLINOIS LAW WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES AND,
TO THE EXTENT APPLICABLE. THE ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL
COMMERCE ACT, LESSEE CONSENTS TO THE JURISDICTION OF ANY FEDERAL COURT LOCATED
IN COOK COUNTY, ILLINOIS, AND WAIVES ANY OBJECTION TO VENUE, AND FURTHER WAIVES
ANY RIGHT TO A TRIAL BY JURY.

 

21. MISCELLANEOUS.

 

(a) The headings used in this Agreement are
for convenience only and shall have no legal effect.  This Agreement shall be interpreted without
any strict construction in favor of or against either party.

 

(b) The provisions of Sections 5, 10, 11(b),
11(c), 11(d), 15, 20 and 21 shall continue in full force and effect even after
the term or expiration of this Agreement or any Schedule.

 

(c) Failure or Lessor at any time to require
Lessee’s performance of any obligation shall not affect the right to require
performance of that obligation. No term, condition or provision of this Agreement
or any Schedule shall be waived or deemed to have been waived by Lessor unless
it is in writing and signed by a duly authorized representative of Lessor.  A valid waiver is limited to the specific
situation for which it was given.

 

(d) Lessee shall furnish such financial
statements of Lessee and any Guarantor (prepared in accordance with generally
accepted accounting principles) and other financial information.  Certificates of incumbency or other documents
related to a Lease as Lessor may from time to time reasonably request.

 

(e) if any provision(s) of this Agreement is
deemed invalid or unenforceable to any extent (other than provisions going to
the essence of this Agreement) the same shall not in any respect affect the
validity, legality or enforceability (to the fullest extent permitted by law)
of the remainder of this Agreement, and the parties shall use their best efforts
to replace such illegal, invalid or unenforceable provisions with an
enforceable provision approximating to the extent possible, the original intent
of the parties.

 

(f) Unless otherwise provided, all
obligations hereunder shall be performed or observed at the respective party’s
expense.

 

(g) Lessee shall take any action reasonably
requested by Lessor for the purpose of fully effectuating the intent and
purposes of this Agreement or any Schedule. The parties intend for each Lease
to constitute a true lease under the UCC and all applicable laws; however if
any Lease is determined to be other than a true lease, Lessee hereby grants to
Lessor a first priority security interest in the Products and all proceeds
thereof, Lessee acknowledges that by signing this Agreement. Lessee has
authorized Lessor to file any financing statements or related filings as Lessor
may reasonably deem necessary or appropriate. Lessor may file a copy of this
Agreement or any Schedule in lieu of a financing statement.

 

(h) This Agreement and any Schedule may be
signed in any number of counterparts, each of which when so executed or
otherwise authenticated and delivered shall be an original but all counterparts
shall together constitute one and the same instrument. To the extent each
Schedule would constitute chattel paper as such term is defined in the UCC, no
security interest may be created through the transfer or control or possession,
as applicable, of a counterpart of a Schedule other than the original in
Lessor’s possession marked by Lessor as either “Original” or “Counterpart
Number 1”.

 

(i) If any Lease is determined to be a lease
intended as security, in no event shall Lessee be obligated to pay any time
price balance differential in excess of the maximum amount permitted by
applicable law (as specified herein or the state where the Products are
located, whichever law permits the greater amount).  In the event Lessor shall receive anything of
value under a Lease that is deemed interest which would exceed the maximum
amount of interest allowed under the law, the excess amount shall be applied to
the reduction of the unpaid time price balance or shall be refunded to
Lessee.  In order to reduce the unpaid
time price balance, any amount deemed interest shall, to the fullest extent
permitted by applicable law, be amortized and spread uniformly throughout the
Lease Term.

 

(j) This Agreement and the Schedules hereto
between Lessor and Lessee set forth the entire agreement between the parties
and supersede and merge all prior written or oral communications, understandings,
or agreements between the parties relating to the subject matter contained
herein.  Except as permitted herein, this
Agreement and any Schedule may be amended only by a writing duly signed or
otherwise authenticated by Lessor and Lessee.

 

EXECUTED by the undersigned on the dates set
forth below, to be effective as of the Effective Date.

 

 

	
   

  	
  DELL FINANCIAL SERVICES L.P.

  	
  Sento Corporation

  
	
   

  	
  “Lessor”

  	
  “Lessee”

  
	
   

  	
   

  	
   

  
	
  BY :

  	
   

  	
   

  	
  BY :

  	
  /s/ Anthony J. Sansone

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAME : 

  	
   

  	
   

  	
  NAME : 

  	
  Anthony J. Sansone

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE : 

  	
   

  	
   

  	
  TITLE : 

  	
  SVP &
  CFO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE :

  	
   

  	
   

  	
  DATE :

  	
  10-11-05

  

 

4

 

	
  

  	
  Schedule

  

  Sento Corporation

  

  MASTER LEASE AGREEMENT SCHEDULE NO. 007907960-002

  

 

THIS SCHEDULE IS SUBJECT TO AND INCORPORATES
THE TERMS AND CONDITIONS OF MASTER LEASE AGREEMENT NO. 7907960 DATED October
07, 2005 BETWEEN DELL FINANCIAL SERVICES L.P. (“Lessor”) AND Sento Corporation
(“Lessee”). If the entity named on this Schedule is not the Lessee named under
the Agreement, then such entity, if an affiliate of Lessee approved in writing
in advance by Lessor, shall be deemed the Lessee under this Schedule.

 

Lessor hereby agrees to lease and/or make
available to Lessee subject to the terms, conditions and provisions set forth
in this Schedule and in the Agreement, the Products described below. Any
capitalized term used herein and not defined herein shall have the meaning
ascribed to it in the Agreement.

 

PRODUCT DESCRIPTION AND LOCATION: See below
or Exhibit “A” attached to and made a part hereof.

 

PRODUCT SELLER: Dell Inc., One Dell Way,
Round Rock, TX 78682

 

	
  Product Description

  	
   

  	
  Product Location

  	
   

  	
  Lessee PO No.

  	
   

  	
  Rent*

  	
   

  	
  Primary

  Term (Mos)

  	
   

  	
  Commencement

  Date**

  
	
  See Exhibit “A”

  	
   

  	
  See Exhibit “A”

  	
   

  	
  See Exhibit “A”

  	
   

  	
  $

  	
  9,742.44

  	
   

  	
  36

  	
   

  	
  11/10/2005

  
												

Total Product Acquisition Cost: $359,500.00

 

Rent is payable:     ý  in advance o  in
arrears

 

Payment Period:    ý  Monthly  o  Quarterly  o  Annually  o  Semi-Annually  o  Other (specify)          

 

Pro-rated Rent:      ý  applies $8,436.89 (amount);  o  does not apply

 

* Lessee is responsible for applicable taxes,
shipping and other amounts as described in the Agreement, and, with the first
payment of Rent, any prorated Rent if applicable. Such amounts are further
described in Exhibit “A”.

 

** The Commencement Date may be extended for
one Payment Period until the Schedule is returned in accordance with the terms
stated in the Agreement. Lessor may charge Lessee prorated Rent accruing from
the Acceptance Date to the Commencement Date, as such date is finally
determined.

 

END OF LEASE OPTIONS: Provided that no Event of Default has
occurred and is continuing, and at least 90 days but no more than 180 days
prior to the expiration of the Primary Term (the “Expiration Date”), Lessee
will give irrevocable written notice to Lessor of its intention to either:

 

(i) purchase all of the Products at Fair
Market Value (defined below);

(ii) renew the Lease Term for a minimum of
six (6) months at a rate and for a term agreed upon by both parties; or

(iii) return all of the Products in
accordance with the Agreement.

 

If Lessee exercises the option to purchase
the Products then, on receipt of payment of the “Fair Market Value” (defined
below) plus applicable taxes, Lessor will sell the Products to Lessee AS
IS-WHERE IS, WITHOUT WARRANTY OR RECOURSE, EXPRESS, IMPLIED OR OTHERWISE,
INCLUDING ANY WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, OR AGAINST INFRINGEMENT. The Fair Market Value purchase price shall be
paid on or before the last day of the Primary Term. “Fair Market Value” means
the price of the Products, installed, in use and in the condition required by
the Agreement as determined by Lessor in its reasonable judgment. If Lessee
disagrees with the Fair Market Value, Lessee shall notify Lessor in writing
within 60 days prior to the Expiration Date and, upon Lessee’s request and
within ten (10) days after receipt of Lessee’s notice, Lessor shall appoint a
qualified appraiser reasonably acceptable to Lessee to appraise the retail
value of the Products. The amount determined by such appraiser shall be the
final Fair Market Value. Lessor and Lessee shall share the expense of such
appraisal equally.

 

If Lessee desires to renew a Lease, Lessee
and Lessor shall enter into a supplement to this Schedule describing the length
of the renewal Lease Term and the renewal Rent provided, however, all other
terms of this Schedule and the Agreement shall remain in full force and effect.

 

Whether or not Lessee has given Lessor notice
of its intent as described above, if Lessee does not return or purchase the
Products or renew the Lease as required above, the Lease Term shall automatically
extend on a month-to-month basis at the Rent in effect on the last day of the
Primary Term (prorated on a monthly basis if the Payment Period was other than
monthly during the Primary Term). Such extension shall continue until Lessee: (i)
provides 30 days prior written notice of its intention to return or purchase
the Products (to take effect on the next Rent payment date that is at least 30
days after the notice is received by Lessor) and (ii) either returns or
purchases all of the Products in accordance with the End of Lease options
above. Payments of Rent during the month-to-month extension are due and payable
monthly as specified in Lessor’s invoice. If Lessee fails to return or purchase
any Products, the Schedule and associated Rent for the Products that have not
been returned or purchased shall extend on a month-to-month basis in accordance
with the prior sentence.

 

COMPLETION OF SCHEDULE: Lessee hereby authorizes Lessor to insert or
update the serial numbers of the Products from time to time as necessary.

 

By signing below, each of the parties hereto
agrees to be bound by the terms of the Agreement, this Schedule and the
attached Exhibit “A”.

 

 

	
   

  	
  DELL FINANCIAL SERVICES L.P.

  	
   

  	
   

  	
   

  	
  Sento Corporation

  	
   

  
	
   

  	
  “Lessor”

  	
   

  	
   

  	
   

  	
  “Lessee”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
   

  	
   

  	
   

  	
  NAME:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
   

  	
   

  	
  TITLE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
   

  	
  DATE:

  	
   

  	
   

  

 

 

	
  

  	
  Schedule

  

  Sento Corporation

  

  MASTER LEASE AGREEMENT SCHEDULE NO. 007907960-006

  

 

THIS SCHEDULE IS SUBJECT TO AND INCORPORATES
THE TERMS AND CONDITIONS OF MASTER LEASE AGREEMENT NO. 7907960 DATED October
07, 2005 BETWEEN DELL FINANCIAL SERVICES L.P. (“Lessor”) AND Sento Corporation
(“Lessee”). If the entity named on this Schedule is not the Lessee named under
the Agreement, then such entity, if an affiliate of Lessee approved in writing
in advance by Lessor, shall be deemed the Lessee under this Schedule.

 

Lessor hereby agrees to lease and/or make
available to Lessee subject to the terms, conditions and provisions set forth
in this Schedule and in the Agreement, the Products described below. Any
capitalized term used herein and not defined herein shall have the meaning
ascribed to it in the Agreement.

 

PRODUCT DESCRIPTION AND LOCATION: See below
or Exhibit “A” attached to and made a part hereof.

 

PRODUCT SELLER: Dell Inc., One Dell Way,
Round Rock, TX 78682

 

	
  Product Description

  	
   

  	
  Product Location

  	
   

  	
  Lessee PO No.

  	
   

  	
  Rent*

  	
   

  	
  Primary

  Term (Mos)

  	
   

  	
  Commencement

  Date**

  
	
  See Exhibit “A”

  	
   

  	
  See Exhibit “A”

  	
   

  	
  See Exhibit “A”

  	
   

  	
  $

  	
  6,901.64

  	
   

  	
  36

  	
   

  	
  12/10/2005

  
												

Total Product Acquisition Cost: $254,250.00

 

Rent is payable:     ý  in advance o  in
arrears

 

Payment Period:    ý  Monthly  o  Quarterly  o  Annually  o  Semi-Annually  o  Other (specify)          

 

Pro-rated Rent:      ý  applies $891.76 (amount);  o  does not apply

 

* Lessee is responsible for applicable taxes,
shipping and other amounts as described in the Agreement, and, with the first
payment of Rent, any prorated Rent if applicable. Such amounts are further
described in Exhibit “A”.

 

** The Commencement Date may be extended for
one Payment Period until the Schedule is returned in accordance with the terms
stated in the Agreement. Lessor may charge Lessee prorated Rent accruing from
the Acceptance Date to the Commencement Date, as such date is finally
determined.

 

END OF LEASE OPTIONS: Provided that no Event of Default has
occurred and is continuing, and at least 90 days but no more than 180 days
prior to the expiration of the Primary Term (the “Expiration Date”), Lessee
will give irrevocable written notice to Lessor of its intention to either:

 

(i) purchase all of the Products at Fair
Market Value (defined below);

(ii) renew the Lease Term for a minimum of
six (6) months at a rate and for a term agreed upon by both parties; or

(iii) return all of the Products in
accordance with the Agreement.

 

If Lessee exercises the option to purchase
the Products then, on receipt of payment of the “Fair Market Value” (defined
below) plus applicable taxes, Lessor will sell the Products to Lessee AS
IS-WHERE IS, WITHOUT WARRANTY OR RECOURSE, EXPRESS, IMPLIED OR OTHERWISE,
INCLUDING ANY WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, OR AGAINST INFRINGEMENT. The Fair Market Value purchase price shall be
paid on or before the last day of the Primary Term. “Fair Market Value” means
the price of the Products, installed, in use and in the condition required by
the Agreement as determined by Lessor in its reasonable judgment. If Lessee
disagrees with the Fair Market Value, Lessee shall notify Lessor in writing
within 60 days prior to the Expiration Date and, upon Lessee’s request and
within ten (10) days after receipt of Lessee’s notice, Lessor shall appoint a
qualified appraiser reasonably acceptable to Lessee to appraise the retail
value of the Products. The amount determined by such appraiser shall be the
final Fair Market Value. Lessor and Lessee shall share the expense of such
appraisal equally.

 

If Lessee desired to renew a Lease, Lessee
and Lessor shall enter into a supplement to this Schedule describing the length
of the renewal Lease Term and the renewal Rent provided, however, all other
terms of this Schedule and the Agreement shall remain in full force and effect.

 

Whether or not Lessee has given Lessor notice
of its intent as described above, if Lessee does not return or purchase the
Products or renew the Lease as required above, the Lease Term shall
automatically extend on a month-to-month basis at the Rent in effect on the
last day of the Primary Term (prorated on a monthly basis if the Payment Period
was other than monthly during the Primary Term). Such extension shall continue
until Lessee: (i) provides 30 days prior written notice of its intention to
return or purchase the Products (to take effect on the next Rent payment date
that is at least 30 days after the notice is received by Lessor) and (ii)
either returns or purchases all of the Products in accordance with the End of
Lease options above. Payments of Rent during the month-to-month extension are
due and payable monthly as specified in Lessor’s invoice. If Lessee fails to
return or purchase any Products, the Schedule and associated Rent for the
Products that have not been returned or purchased shall extend on a month-to-month
basis in accordance with the prior sentence.

 

COMPLETION OF SCHEDULE: Lessee hereby authorizes Lessor to insert or
update the serial numbers of the Products from time to time as necessary.

 

By signing below, each of the parties hereto
agrees to be bound by the terms of the Agreement, this Schedule and the
attached Exhibit “A”.

 

 

	
   

  	
  DELL FINANCIAL SERVICES L.P.

  	
   

  	
   

  	
   

  	
  Sento Corporation

  	
   

  
	
   

  	
  “Lessor”

  	
   

  	
   

  	
   

  	
  “Lessee”

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
   

  	
  BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
   

  	
   

  	
   

  	
  NAME:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
   

  	
   

  	
  TITLE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
   

  	
  DATE:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]