Document:

Exhibit 10.1

 

Silicon
Valley Bank

Amendment to Loan Documents

 

	
  Borrower:

  	
   

  	
  Sento
  Corporation

  
	
   

  	
   

  	
  Sento
  Technical Services Corporation

  
	
   

  	
   

  	
  Xtrasource
  Acquisition, Inc.

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  Effective
  as of January      , 2006

  

 

THIS AMENDMENT TO LOAN DOCUMENTS is entered
into between Silicon Valley Bank (“Silicon”) and the borrowers named above
(collectively, the “Borrower”).

 

The Parties
agree to amend the Loan and Security Agreement between them, dated April 15,
2003 (as otherwise amended, if at all, the “Loan Agreement”), as follows,
effective as of the date hereof. 
(Capitalized terms used but not defined in this Amendment shall have the
meanings set forth in the Loan Agreement.)

 

1.                                      Fee.  In consideration for Silicon entering
into this Amendment, Borrower shall pay Silicon the loan fees set forth in the
Third Amended and Restated Schedule to Loan and Security Agreement, plus
Silicon’s out-of-pocket expenses incurred by Silicon in connection with this
Amendment.  Such fees shall be
non-refundable and in addition to all interest and other fees payable to
Silicon under the Loan Documents. 
Silicon is authorized to charge said such fees to Borrower’s loan
account.

 

2.                                      Third
Amended and Restated Schedule to Loan and Security Agreement.  The Second Amended and Restated Schedule to
Loan and Security Agreement dated as of March 31, 2005, is amended and
superseded by the Third Amended and Restated Schedule to Loan and Security
Agreement executed contemporaneously herewith.

 

3.                                      Limitation
of Amendments.

 

3.1                                 The
amendments set forth in the Third Amended and Restated Schedule to Loan and
Security Agreement are effective for the purposes set forth therein and shall
be limited precisely as written and shall not be deemed to (a) be a consent to
any amendment, waiver or modification of any other term or condition of any
Loan Document, or (b) otherwise prejudice any right or remedy which Silicon may
now have or may have in the future under or in connection with any Loan
Document.

 

3.2                                 This
Amendment and the Third Amended and Restated Schedule to Loan and Security
Agreement shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and
agreements set 

 

1

 

forth in the Loan Documents,
except as herein amended, are hereby ratified and confirmed and shall remain in
full force and effect.

 

4.                                      Representations
and Warranties.  To induce Silicon to
enter into this Amendment and the Third Amended and Restated Schedule to Loan
and Security Agreement, Borrower hereby represents and warrants to Bank as
follows:

 

4.1                                 Immediately
after giving effect to this Amendment and the Third Amended and Restated
Schedule to Loan and Security Agreement (a) the representations and warranties contained
in the Loan Documents are true, accurate and complete in all material respects
as of the date hereof (except to the extent such representations and warranties
relate to an earlier date, in which case they are true and correct as of such
date), and (b) no Event of Default has occurred and is continuing;

 

4.2                                 Borrower
has the power and authority to execute and deliver this Amendment and the Third
Amended and Restated Schedule to Loan and Security Agreement and to perform its
obligations under the Loan Agreement, as amended by this Amendment;

 

4.3                                 The
organizational documents of Borrower delivered to Silicon remain true, accurate
and complete and have not been amended, supplemented or restated and are and
continue to be in full force and effect;

 

4.4                                 The
execution and delivery by Borrower of this Amendment and the Third Amended and
Restated Schedule to Loan and Security Agreement and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment and the Third Amended and Restated Schedule to Loan and Security
Agreement, have been duly authorized;

 

4.5                                 The
execution and delivery by Borrower of this Amendment and the Third Amended and
Restated Schedule to Loan and Security Agreement and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment and the Third Amended and Restated Schedule to Loan and Security
Agreement, do not and will not contravene (a) any law or regulation binding on
or affecting Borrower, (b) any contractual restriction with a Person binding on
Borrower, (c) any order, judgment or decree of any court or other governmental
or public body or authority, or subdivision thereof, binding on Borrower, or
(d) the organizational documents of Borrower;

 

4.6                                 The
execution and delivery by Borrower of this Amendment and the Third Amended and
Restated Schedule to Loan and Security Agreement and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment and the Third Amended and Restated Schedule to Loan and Security
Agreement, do not require any order, consent, approval, license, authorization
or validation of, or filing, recording or registration with, or exemption by
any governmental or public body or authority, or subdivision thereof, binding
on either Borrower, except as already has been obtained or made; and

 

4.7                                 This
Amendment and the Third Amended and Restated Schedule to Loan and Security
Agreement have been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its
terms, except as 

 

2

 

such enforceability may be
limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to
or affecting creditors’ rights.

 

5.                                      Counterparts.  This Amendment and the Third Amended and
Restated Schedule to Loan and Security Agreement may be executed in any number
of counterparts and all of such counterparts taken together shall be deemed to
constitute one and the same instrument.

 

6.                                      Effectiveness
..  This Amendment shall be deemed
effective upon (a) the due execution and delivery to Bank of this Amendment and
the Third Amended and Restated Schedule to Loan and Security Agreement by each
party hereto, and (b) Borrower’s payment of the loan fee set forth in the Third
Amended and Restated Schedule to Loan and Security Agreement in an amount equal
to $15,000 and Bank’s out-of-pocket expenses.

 

[Signature page follows]

 

3

 

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

 

	
  Borrower:  

  	
   

  	
  Silicon:

  
	
   

  	
   

  	
   

  
	
  SENTO CORPORATION

  	
   

  	
  SILICON
  VALLEY BANK 

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  President or Vice President

  	
   

  	
  Title

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary or Ass’t Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower:   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SENTO
  TECHNICAL SERVICES CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  President or Vice President

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary or Ass’t Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  XTRASOURCE
  ACQUISITION, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  President or Vice President

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary or Ass’t Secretary

  	
   

  	
   

  
												

 

4

 

Silicon
Valley Bank

 

Third Amended and Restated

 

Schedule to Loan and Security Agreement

 

	
  Borrower:

  	
  Sento Corporation

  
	
   

  	
  Sento Technical Services Corporation

  
	
   

  	
  Xtrasource
  Acquisition, Inc.

  
	
   

  	
   

  
	
  Address:

  	
  808 East Utah Valley Drive

  
	
   

  	
  American Fork, UT 84003

  
	
   

  	
   

  
	
  Date:

  	
  Effective
  as of January      , 2006

  

 

This Third
Amended and Restated Schedule forms an
integral part of the Loan and Security Agreement between Silicon Valley Bank
and the Borrower dated April 15, 2003, including all amendments thereto, and
amends and restates in its entirety the prior Second Amended and Restated
Schedule to Loan and Security Agreement (as previously amended, the “Original
Schedule”), effective on the date hereof.

 

1.  CREDIT LIMIT

	
  (Section 1.1):

  	
   

  	
  An amount
  equal to the sum of 1, 2, 3, 4 and 5 below:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.  Accounts Loans. An amount not to exceed the lesser of: (i) $3,000,000 at any one time outstanding (the “Maximum
  Credit Limit”); or (ii) 80% (the
  “Advance Rate”) of the amount of Borrower’s Eligible Accounts (as defined in
  Section 8 above).

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Silicon may, from time to time, modify the Advance Rate, in its good
  faith business judgment, upon notice to the Borrower, based on changes in
  collection experience with respect to Accounts or other issues or factors
  relating to the Accounts or other Collateral.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  plus

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.  Term Loan #1. An
  amount equal to the aggregate unpaid principal balance from time to time
  outstanding of the Loan (“Term Loan #1”) being made concurrently herewith in
  the original principal amount of $750,000 to
  refinance Borrower’s existing three term loans previously made by Silicon and
  to replenish Borrower’s working capital provided for the purchase by Borrower
  of new or used domestic Equipment acceptable to Silicon in its good faith
  business judgment, including computer equipment, office equipment, lab
  equipment, test equipment 

   

  	
   

  

 

1

 

	
   

  	
   

  	
  and furnishings. To evidence Term Loan #1, Borrower shall deliver to
  Silicon, at the time of the Term Loan #1 request, all invoices for the
  Equipment which was previously purchased by the Borrower. The invoices cannot
  be dated prior to October 1, 2003. Term Loan #1 shall be used only to
  reimburse the Borrower for previously purchased Equipment and shall not
  exceed 100% of the invoice amount of such
  Equipment approved from time to time by Silicon; provided that Borrower may
  use up to, but not more than, 20% of the
  amount of Term Loan #1 for (i) the purchase or license of software, (ii)
  leasehold improvements and (iii) other soft costs, including sales tax, freight
  and installation expenses. Subject to and upon the terms and conditions of
  this Agreement, Term Loan #1 will be made in one single disbursement. Term
  Loan #1 cannot be repaid and reborrowed. Term
  Loan #1 shall be repaid as provided for herein.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  plus

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.  Term Loan #2. An
  amount equal to the aggregate unpaid principal balance from time to time
  outstanding of the Loans, (collectively, “Term Loan #2”) made from time to
  time by Silicon to Borrower in a total amount not to exceed $1,500,000 for the purchase by Borrower of new or used
  domestic Equipment acceptable to Silicon in its good faith business judgment,
  including computer equipment, office equipment, lab equipment, test equipment
  and furnishings. To evidence each Term Loan #2, Borrower shall deliver to
  Silicon, at the time of each Term Loan #2 request, an invoice for the
  Equipment (a) to be purchased or (b) which was previously purchased by the
  Borrower. The Loan request with respect to any particular Equipment must be
  made within 90 days of the date such Equipment was purchased. Each Term Loan
  #2 shall be used only to (a) purchase Equipment or (b) reimburse the Borrower
  for previously purchased Equipment and shall not exceed 100%
  of the invoice amount of such Equipment approved from time to time by
  Silicon; provided that Borrower may use up to, but not more than, 25% of the amount of each Term Loan #2 for (i) the
  purchase or license of software, (ii) leasehold improvements and (iii) other
  soft costs, including sales tax, freight and installation expenses. Subject
  to and upon the terms and conditions of this Agreement, Term Loan #2 shall be
  available through March 31, 2005 (the “Term Loan #2 Availability End Date”).
  Term Loan #2 shall be made in disbursements of not less than $100,000 each. Term Loan #2 cannot be repaid
  and reborrowed. Term Loan #2 shall be repaid
  as provided for herein.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  plus

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.  Term Loan
  #3. An amount equal to the
  aggregate unpaid principal balance from time to time outstanding of the Loans
  (collectively, “Term Loan #3”) made from time to time by Silicon to Borrower
  in a total amount not to exceed $1,000,000
  for the purchase by Borrower 

  	
   

  

 

2

 

	
   

  	
   

  	
  of new or used domestic Equipment acceptable to Silicon in its good
  faith business judgment, including computer equipment, office equipment, lab
  equipment, test equipment and furnishings. To evidence each Term Loan #3,
  Borrower shall deliver to Silicon, at the time of each Term Loan #3 request,
  an invoice for the Equipment (a) to be purchased or (b) which was previously
  purchased by the Borrower. The Loan request with respect to any particular
  Equipment must be made within 90 days of the date such Equipment was
  purchased. Each Term Loan #3 shall be used only to (a) purchase Equipment or
  (b) reimburse the Borrower for previously purchased Equipment and shall not
  exceed 100% of the invoice amount of such
  Equipment approved from time to time by Silicon; provided that Borrower may
  use up to, but not more than, 25% of the amount
  of each Term Loan #3 for (i) the purchase or license of software, (ii)
  leasehold improvements and (iii) other soft costs, including sales tax,
  freight and installation expenses. Subject to and upon the terms and
  conditions of this Agreement, Term Loan #3 shall be available through March
  31, 2006 (the “Term Loan #3 Availability End Date”). Term Loan #3 shall be
  made in disbursements of not less than $100,000
  each. Term Loan #3 cannot be repaid and reborrowed. Term Loan #3 shall be repaid as provided for herein.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.  Term Loan
  #4. An amount equal to the
  aggregate unpaid principal balance from time to time outstanding of the Loans
  (collectively, “Term Loan #4”) made from time to time by Silicon to Borrower
  in a total amount not to exceed $1,500,000
  for the purchase by Borrower of new or used domestic Equipment acceptable to
  Silicon in its good faith business judgment, including computer equipment,
  office equipment, lab equipment, test equipment and furnishings. To evidence
  each Term Loan #4, Borrower shall deliver to Silicon, at the time of each
  Term Loan #4 request, an invoice for the Equipment (a) to be purchased or (b)
  which was previously purchased by the Borrower. The Loan request with respect
  to any particular Equipment must be made within 90 days of the date such
  Equipment was purchased. Each Term Loan #4 shall be used only to (a) purchase
  Equipment or (b) reimburse the Borrower for previously purchased Equipment
  and shall not exceed 100% of the
  invoice amount of such Equipment approved from time to time by Silicon;
  provided that Borrower may use up to, but not more than, 25%
  of the amount of each Term Loan #4 for (i) the purchase or license of
  software, (ii) leasehold improvements and (iii) other soft costs, including
  sales tax, freight and installation expenses. Subject to and upon the terms
  and conditions of this Agreement, Term Loan #4 shall be available through
  March 31, 2006 (the “Term Loan #4 Availability End Date”). Term Loan #4 shall
  be made in disbursements of not less than $100,000
  each. Term Loan #4 cannot be repaid and reborrowed. Term Loan #4 shall be repaid as provided for herein.

  	
   

  

 

3

 

	
   

  	
   

  	
  As used in
  this Agreement, “Loans” includes the Accounts Loans, Term Loan #1, Term Loan
  #2, Term Loan #3 and Term Loan #4.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Loans will
  be made to each Borrower based on the Eligible Accounts of each Borrower,
  subject to the Maximum Credit Limit set forth above for all Loans to all
  Borrowers combined.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Letter of Credit Sublimit

  	
   

  	
   

  	
   

  
	
  (Section
  1.6):

  	
   

  	
  $500,000; provided
  that the total Letter of Credit Sublimit and the Foreign Exchange Contract
  Sublimit shall not, at any time, exceed $500,000 in the aggregate.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Cash Management

  	
   

  	
   

  	
   

  
	
  Services and Reserves:

  	
   

  	
  Borrower may use up to
  $250,000 of Loans available hereunder for Silicon’s Cash Management Services
  (as defined below), including, merchant services, business credit card, ACH
  and other services identified in the cash management services agreement
  related to such service (the “Cash Management Services”). Silicon may, in its
  sole discretion, reserve against Loans which would otherwise be available
  hereunder such sums as Silicon shall determine in its good faith business
  judgment in connection with the Cash Management Services, and Silicon may
  charge to Borrower’s Loan account, any amounts that may become due or owing
  to Silicon in connection with the Cash Management Services. Borrower agrees
  to execute and deliver to Silicon all standard form applications and
  agreements of Silicon in connection with the Cash Management Services, and,
  without limiting any of the terms of such applications and agreements,
  Borrower will pay all standard fees and charges of Silicon in connection with
  the Cash Management Services. The Cash Management Services shall terminate on
  the Maturity Date.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Foreign
  Exchange

  	
   

  	
   

  	
   

  
	
  Contract
  Sublimit:

  	
   

  	
  $500,000,
  provided that the total Letter of Credit Sublimit and the Foreign Exchange
  Contract Sublimit shall not, at any time, exceed $500,000 in the aggregate.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Borrower may
  enter into foreign exchange forward contracts with Silicon, on its standard
  forms, under which Borrower commits to purchase from or sell to Silicon a set
  amount of foreign currency more than one business day after the contract date
  (the “FX Forward Contracts”); provided that (1) at the time the FX Forward
  Contract is entered into Borrower has Loans available to it under this
  Agreement in an amount at least equal to 10% of the amount of the FX Forward
  Contract; (2) the total FX Forward Contracts at any one time outstanding may
  not exceed 10 times the amount of the Foreign Exchange Contract Sublimit set
  forth above. Silicon shall have the right to withhold, from the Loans
  otherwise available to Borrower under this Agreement, a reserve (which shall
  be in addition to all other reserves) in an amount equal to 10% of the total
  FX Forward Contracts 

  	
   

  

 

4

 

	
   

  	
   

  	
  from time to
  time outstanding, and in the event at any time there are insufficient Loans
  available to Borrower for such reserve, Borrower shall deposit and maintain
  with Silicon cash collateral in an amount at all times equal to such
  deficiency, which shall be held as Collateral for all purposes of this
  Agreement. Silicon may, in its discretion, terminate the FX Forward Contracts
  at any time that an Event of Default occurs and is continuing. Borrower
  shall execute all standard form applications and agreements of Silicon in
  connection with the FX Forward Contracts, and without limiting any of the
  terms of such applications and agreements, Borrower shall pay all standard
  fees and charges of Silicon in connection with the FX Forward Contracts.

  	
   

  

 

2.  INTEREST.

 

	
  Interest Rate
  (Section 1.2):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to the Accounts Loans:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A rate equal
  to the “Prime Rate” in effect from time to time, plus 1.00% per annum. Interest shall be calculated on the basis of
  a 360-day year for the actual number of days elapsed. “Prime Rate” means the
  rate announced from time to time by Silicon as its “prime rate;” it is a base
  rate upon which other rates charged by Silicon are based, and it is not
  necessarily the best rate available at Silicon. The interest rate applicable
  to the Obligations shall change on each date there is a change in the Prime
  Rate.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to Term Loan #1:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The interest
  rate is a fixed rate equal to 7.4%. Interest shall be calculated on the basis
  of a 360-day year for the actual number of days elapsed.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to Term Loan #2:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  From the
  date hereof through the Term Loan #2 Availability
  End Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  The interest rate shall be a rate equal to the Prime
  Rate (as defined above) in effect from time to time, plus 1.50% per annum. Interest shall be
  calculated on the basis of a 360-day year for the actual number of days
  elapsed. The interest rate applicable to the Obligations pertaining to Term
  Loan #2 shall change on each date there is a change in the Prime Rate.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  After the
  Term Loan #2 Availability End Date: The
  Borrower elected a fixed interest rate equal to 8.46%. Interest shall be
  calculated on the basis of a 360-day year for the actual number of days
  elapsed.

  	
   

  

 

5

 

	
   

  	
   

  	
  With respect
  to Term Loan #3:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  From the
  date hereof through the Term Loan #3 Availability
  End Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  The interest rate shall be a rate equal to the Prime
  Rate (as defined above) in effect from time to time, plus 1.50% per annum. Interest shall be
  calculated on the basis of a 360-day year for the actual number of days elapsed.
  The interest rate applicable to the Obligations pertaining to Term Loan #3
  shall change on each date there is a change in the Prime Rate.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  After the
  Term Loan #3 Availability End Date:
  Either (1) or (2) below, at Borrower’s option, to be determined by Borrower
  on or before March 31, 2006:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (1)

  	
  The interest rate shall be a rate equal to the Prime
  Rate (as defined above) in effect from time to time, plus 1.50% per annum. Interest shall be
  calculated on the basis of a 360-day year for the actual number of days
  elapsed. The interest rate applicable to the Obligations pertaining to Term
  Loan #3 shall change on each date there is a change in the Prime Rate; or

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (2)

  	
  The interest
  rate shall be a fixed rate per annum equal to the yield on United States
  Treasury Notes with a three year maturity on the date the Borrower chooses
  this option (2), if ever, plus  4.50%
  per annum. Interest shall be calculated on the basis of a 360-day year for
  the actual number of days elapsed.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to Term Loan #4:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  From the
  date hereof through the Term Loan #4 Availability
  End Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  The interest rate shall be a rate equal to the Prime
  Rate (as defined above) in effect from time to time, plus 1.50% per annum. Interest shall be
  calculated on the basis of a 360-day year for the actual number of days
  elapsed. The interest rate applicable to the Obligations pertaining to Term
  Loan #4 shall change on each date there is a change in the Prime Rate.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  After the
  Term Loan #4 Availability End Date:
  Either (1) or (2) below, at Borrower’s option, to be determined by Borrower
  on or before March 31, 2006:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (1)

  	
  The interest rate shall be a rate equal to the Prime
  Rate (as defined above) in effect from time to time, plus 1.50% per annum. Interest shall be
  calculated on the basis of a 360-day year for the actual number of days
  elapsed. The interest rate applicable to the Obligations pertaining to 

  	
   

  

 

6

 

	
   

  	
   

  	
   

  	
   

  	
  Term Loan #4
  shall change on each date there is a change in the Prime Rate; or

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (2)

  	
  The interest
  rate shall be a fixed rate per annum equal to the yield on United States
  Treasury Notes with a three year maturity on the date the Borrower chooses
  this option (2), if ever, plus  4.50%
  per annum. Interest shall be calculated on the basis of a 360-day year for
  the actual number of days elapsed.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Minimum Monthly

  	
   

  	
   

  	
   

  
	
  Interest (Section
  1.2):

  	
   

  	
  Not Applicable.

  	
   

  

 

3.  FEES
(Section 1.4):

 

	
  Loan Fee:

  	
   

  	
  With respect
  to the Accounts Loans: No fee is due.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to Term Loan #1: No fee is due.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to Term Loan #2: No fee is due.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to Term Loan #3: No fee is due.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With respect
  to Term Loan #4:  $15,000, payable concurrently herewith.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Unused Line Fee:

  	
   

  	
  In the
  event, in any calendar month (or portion thereof at the beginning and end of
  the term hereof), the average daily principal balance of the Accounts Loans
  outstanding during the month is less than the amount of the Maximum Credit
  Limit, Borrower shall pay Silicon an unused line fee in an amount equal to
  0.25% per annum on the difference between the amount of the Maximum Credit
  Limit and the average daily principal balance of the Accounts Loans
  outstanding during the month, computed on the basis of a 360-day year, which
  unused line fee shall be computed and paid monthly, in arrears, on the first
  day of the following month.

  	
   

  

 

4.  MATURITY
DATE

	
  (Section 6.1):

  	
   

  	
  June 30, 2007.

  

 

	
   

  	
  Notwithstanding
  the foregoing, with respect to Term Loan #1: The outstanding principal
  balance of Term Loan #1 shall be repaid by Borrower to Silicon in thirty-six
  (36) equal monthly payments of principal, commencing on June 1, 2004 and
  continuing on the first day of each subsequent month until the earlier of the
  following dates: (i) May 1, 2007, or (ii) the date Term Loan #1 has been
  indefeasibly paid

  

 

7

 

in full, or (iii) the date the Accounts Loans are terminated, or (iv)
the date this Agreement terminates by its terms or is terminated by either
party in accordance with its terms.  On
the earlier to occur of the foregoing dates, the entire unpaid principal
balance of Term Loan #1, plus all accrued and unpaid interest thereon, shall be
due and payable.  Interest on Term Loan
#1 shall be payable monthly as provided in Section 1.2 of this Agreement.

 

Notwithstanding the foregoing, with respect to Term Loan #2:  From the date of each Term Loan #2 through
the Term Loan #2 Availability End Date, Borrower
shall pay Interest on each Term Loan #2 monthly as provided for in Section 1.2
of this Agreement.  Once the Term
Loan #2 Availability End Date has
expired, the aggregate outstanding principal balance of Term Loan #2 shall be
repaid by Borrower to Silicon in thirty-six (36) equal monthly payments of
principal, commencing on April 1, 2005 and continuing on the first day of each
subsequent month until the earlier of the following dates:  (i) 
March 1, 2008, or (ii) the date Term Loan #2 has been indefeasibly paid
in full, or (iii) the date the Accounts Loans are terminated, or (iv) the date
this Agreement terminates by its terms or is terminated by either party in
accordance with its terms.  On the
earlier to occur of the foregoing dates, the entire unpaid principal balance of
Term Loan #2, plus all accrued and unpaid interest thereon, shall be due and
payable.  Interest on Term Loan #2 shall
be payable monthly as provided in Section 1.2 of this Agreement.

 

Notwithstanding the foregoing, with respect to Term Loan #3:  From the date of each Term Loan #3 through
the Term Loan #3 Availability End Date, Borrower
shall pay Interest on each Term Loan #3 monthly as provided for in Section 1.2
of this Agreement.  Once the Term
Loan #3 Availability End Date has expired,
the aggregate outstanding principal balance of Term Loan #3 shall be repaid by
Borrower to Silicon in thirty-six (36) equal monthly payments of principal,
commencing on April 1, 2006 and continuing on the first day of each subsequent
month until the earlier of the following dates: 
(i)  March 1, 2009, or (ii) the
date Term Loan #3 has been indefeasibly paid in full, or (iii) the date the
Accounts Loans are terminated, or (iv) the date this Agreement terminates by
its terms or is terminated by either party in accordance with its terms.  On the earlier to occur of the foregoing
dates, the entire unpaid principal balance of Term Loan #3, plus all accrued
and unpaid interest thereon, shall be due and payable.  Interest on Term Loan #3 shall be payable monthly
as provided in Section 1.2 of this Agreement.

 

Notwithstanding the foregoing, with respect to Term Loan #4:  From the date of each Term Loan #4 through
the Term Loan #4 Availability End Date, Borrower
shall pay Interest on each Term Loan #4 monthly as provided for in Section 1.2
of this Agreement.  Once the Term
Loan #4 Availability End Date has
expired, the aggregate outstanding 

 

8

 

principal balance of Term Loan #4 shall be repaid by Borrower to Silicon
in thirty-six (36) equal monthly payments of principal, commencing on April 1,
2006 and continuing on the first day of each subsequent month until the earlier
of the following dates:  (i)  March 1, 2009, or (ii) the date Term Loan #4
has been indefeasibly paid in full, or (iii) the date the Accounts Loans are
terminated, or (iv) the date this Agreement terminates by its terms or is
terminated by either party in accordance with its terms.  On the earlier to occur of the foregoing
dates, the entire unpaid principal balance of Term Loan #4, plus all accrued
and unpaid interest thereon, shall be due and payable.  Interest on Term Loan #4 shall be payable
monthly as provided in Section 1.2 of this Agreement.

 

5.  FINANCIAL
COVENANTS

	
  (Section 5.1):

  	
   

  	
  Borrower shall,
  on a consolidated basis, comply with the following covenant. Compliance shall
  be determined as of the end of each month, except as otherwise specifically
  provided below:

  
	
   

  	
   

  	
   

  
	
  Liquidity Coverage:

  	
   

  	
  Commencing
  with the month ending March 31, 2005, Borrower shall maintain Liquidity
  Coverage of not less than 2.0 to 1.0.

  
	
   

  	
   

  	
   

  
	
  Loans and Investments

  	
   

  	
   

  
	
  in Subsidiaries:

  	
   

  	
  Borrower’s
  Investments in its Subsidiaries shall not exceed $1,500,000.

  
	
   

  	
   

  	
   

  
	
  Tangible

  	
   

  	
   

  
	
  Net Worth:

  	
   

  	
  Borrower
  shall maintain a Tangible Net Worth of not less than $5,500,000,
  increasing by 75% of quarterly positive Net Income from January 1, 2006,
  effective as of the last month of each quarter. In no event will the Tangible
  Net Worth covenant be reduced due to any net loss.

  

 

Borrower shall
not be required to comply with the Adjusted Quick Ratio or Minimum Debt Service
Coverage Ratio unless and until Borrower has complied with the Minimum Debt
Service Coverage Ratio for six consecutive months, at which time, Borrower
shall, on a consolidated basis, comply with the following Adjusted Quick Ratio
and Minimum Debt Service Coverage Ratio covenants in lieu of the Liquidity
Coverage and Tangible Net Worth covenants. 
Borrower shall continue to comply with the Loans and Investments in
Subsidiaries covenant.  Compliance shall
be determined as of the end of each month, beginning with the first month
following the six consecutive months during which Borrower complied with the
Minimum Debt Service Coverage Ratio:

 

	
  Adjusted

  	
   

  	
   

  	
   

  
	
  Quick Ratio:

  	
   

  	
  Borrower
  shall maintain an Adjusted Quick Ratio of not less than 2.0 to 1.0.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Minimum Debt

  	
   

  	
   

  	
   

  
	
  Service Coverage

  	
   

  	
   

  	
   

  
	
  Ratio:

  	
   

  	
  Borrower
  shall maintain a Debt Service Coverage Ratio of not less than 1.50 to 1.0.

  	
   

  

 

9

 

	
  Definitions.

  	
   

  	
  For purposes
  of the foregoing financial covenants, the following terms shall have the
  following meanings:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Liquidity
  Coverage” shall mean a ratio of unrestricted cash (and equivalents) deposited
  with Silicon or invested with Silicon’s affiliates plus the loan value of
  accounts (the Advance Rate multiplied by the Borrower’s Eligible Accounts)
  under the Accounts Loan divided by all outstanding Obligations.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Adjusted
  Quick Ratio” shall mean, on any given date, the a ratio of (i) Borrower’s
  Quick Assets to (ii) Borrower’s Current Liabilities less deferred revenues
  plus the long term portion of the outstanding principal balance of the
  Accounts Loan determined according to GAAP .

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Current
  assets”, “current liabilities” and “liabilities” shall have the meaning
  ascribed thereto by GAAP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Debt
  Service Coverage” shall mean the ratio of (a) Borrower’s earnings before
  Borrower’s taxes, interest, depreciation and other amortization expenses
  (“EBITDA”), net of adjustments for changes in non-cash income or expenses
  associated with valuation changes in the market value of options or warrants
  of any Borrower, all determined in accordance with generally accepted
  accounting principles, consistently applied, to (b) Borrower’s obligations
  relating to payment of interest and current maturities of principal on
  Borrower’s outstanding long-term indebtedness and capitalized leases, all
  determined in accordance with generally accepted accounting principles,
  consistently applied. The EBITDA, interest expense, current maturities of
  long-term debt and capitalized leases will be calculated based on a rolling
  twelve-month period.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Investment”
  is any beneficial ownership interest in any Person (including stock,
  partnership interest or other securities), and any loan, advance or capital
  contribution to any Person.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Quick
  Assets” shall mean, on any given date, the Borrower’s consolidated,
  unrestricted cash, cash equivalents and net billed accounts receivable.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Subordinated
  Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s
  now or hereafter indebtedness to Silicon (pursuant to a subordination,
  intercreditor, or other similar agreement in form and substance satisfactory
  to Silicon entered into between Silicon and the other creditor), on terms
  acceptable to Silicon.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Tangible
  Net Worth” is, on any date, the consolidated total assets of Borrower and its
  Subsidiaries minus (a) any amounts attributable to (i) goodwill, (ii)
  intangible items including unamortized debt discount 

  	
   

  

 

10

 

	
   

  	
   

  	
  and expense,
  patents, trade and service marks and names, copyrights and research and
  development expenses except prepaid expenses, (iii) notes, accounts
  receivable and other obligations owing to Borrower from its officers or other
  Affiliates, and (iv) reserves not already deducted from assets, minus (b)
  Total Liabilities, plus (c)
  Subordinated Debt.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Total
  Liabilities” is on any day, obligations that should, under GAAP, be
  classified as liabilities on Borrower’s consolidated balance sheet, including
  all Indebtedness.

  	
   

  

 

6.  REPORTING.

	
  (Section 5.3):

  	
  Borrower
  shall provide Silicon with the following:

  

 

1.               [Omitted].

 

2.               Monthly accounts receivable agings, aged
by invoice date, within twenty days after the end of each month.

 

3.               Monthly accounts payable agings, aged by
invoice date, and outstanding or held check registers, if any, within twenty
days after the end of each month.

 

4.               Monthly schedules listing, by Account Debtor,
Borrower’s deferred revenue accounts and customer deposits, within twenty days
after the end of each month.

 

5.               Monthly unaudited financial statements,
as soon as available, and in any event within thirty days after the end of each
month.

 

6.               Monthly Compliance Certificates, within
thirty days after the end of each month, in such form as Silicon shall
reasonably specify, signed by the Chief Financial Officer of Borrower,
certifying that as of the end of such month Borrower was in full compliance with
all of the terms and conditions of this Agreement, and setting forth
calculations showing compliance with the financial covenants set forth in this
Agreement and such other information as Silicon shall reasonably request,
including, without limitation, a statement that at the end of such month there
were no held checks.

 

7.               Within 5 days of filing, copies of all
reports on Form 10-Q and 10-K filed by Borrower with the Securities and
Exchange Commission.

 

8.               Annual operating budgets (including
income statements, balance sheets and cash flow statements, by month) for the
upcoming fiscal year of Borrower within thirty days prior to the end of each
fiscal year of Borrower.

 

9.               Annual financial statements, as soon as
available, and in any event within 90 days following the end of Borrower’s
fiscal year, 

 

11

 

certified by, and with an unqualified opinion of, independent certified
public accountants acceptable to Silicon.

 

7.  BORROWER INFORMATION:

 

Borrower
represents and warrants that the information set forth in the Representations
and Warranties of the Borrower dated April 15, 2003, previously submitted to
Silicon (the “Representations”) is true and correct as of the date hereof.

 

8.  ADDITIONAL
PROVISIONS

 

(1)                                 Banking
Relationship.  Borrower shall at all
times maintain its primary domestic banking relationship with Silicon.  As to any Deposit Accounts and investment
accounts maintained with another institution, if an Event of Default has
occurred and is continuing, at Silicon’s request, Borrower shall cause such
institution to enter into a control agreement in form acceptable to Silicon in
its good faith business judgment in order to perfect Silicon’s first-priority
security interest in said Deposit Accounts and investment accounts.

 

(2)                                 Subordination
of Inside Debt.  All present and
future indebtedness of Borrower to its officers, directors and shareholders (“Inside
Debt”) shall, at all times, be subordinated to the Obligations pursuant to a
subordination agreement on Silicon’s standard form.  Borrower represents and warrants that there
is no Inside Debt presently outstanding, except for the following: NONE.  Prior to incurring any Inside Debt in the future,
Borrower shall cause the person to whom such Inside Debt will be owed to
execute and deliver to Silicon a subordination agreement on Silicon’s standard
form.

 

(3)                                 Warrants.  Borrower previously provided Silicon with
warrants to purchase shares of stock of Borrower, which shall be retained by
Silicon.  No additional warrants are
being provided pursuant to this Amended Schedule.

 

(4)                                 Indebtedness.  Borrower shall not create, incur, assume, or
be liable for any Indebtedness, or permit any Subsidiary to do so, other than
Permitted Indebtedness.

 

(5)                                 Investments.
Borrower shall not directly or indirectly acquire or own any Person, or
make any Investment in any Person, other than Permitted Investments, or permit
any of its Subsidiaries to do so.

 

12

 

[Signature page follows]

 

 

	
  Borrower:  

  	
   

  	
  Silicon:

  
	
   

  	
   

  	
   

  
	
  SENTO CORPORATION

  	
   

  	
  SILICON
  VALLEY BANK 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  President or Vice President

  	
   

  	
  Title

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary or Ass’t Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SENTO TECHNICAL SERVICES 

  	
   

  	
   

  
	
  CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  President or Vice President

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary or Ass’t Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  XTRASOURCE ACQUISITION, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  President or Vice President

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary or Ass’t Secretary

  	
   

  	
   

  
											

 

13Exhibit 10.2

 

Amendment One to Lease Agreement

 

THIS
AMENDMENT to Lease made and entered into the 30th day
of September 2005, by and between Centurion Southwest, LLC as “Landlord”, and Sento
Corporation as “Tenant”, of which this Amendment to Lease is made a part, is
hereby amended and supplemented as follows:

 

WITNESSETH

 

WHEREAS,
Landlord leased certain premises in the Compass Bank
Plaza, 505 Marquette Avenue NW, in the City of Albuquerque, County of
Bernalillo, State of New Mexico, to Tenant, pursuant to that certain Lease
dated the 19th of September 2005 with Sento Corporation, and scheduled to
expire December 31, 2010, the premises being more particularly described
therein;

 

NOW,
THEREFOR, in consideration of these premises and the
agreement of each other, Landlord and Tenant agree that the said Lease shall be
and the same is hereby further amended as the above date as follows:

 

1.                                       Tenant
will lease an additional 22,581 rentable square feet - comprised of the 15th
floor (15,054 rentable square feet) and one half the 13th floor
(7,527 rentable square feet).

 

2.                                       In
consideration for the additional square footage, Tenant will receive rent
abatement for one-half (7,527 rentable square feet) of the 7th
floor, so long as this portion is not utilized. 
If Tenant does not commence paying rent (as determined in original
lease) for this one-half of the 7th floor by November 1, 2006, then
Tenant will reimburse Landlord for all Tenant Improvement and Furniture costs
and expenses (soft and hard) incurred by Landlord for this half of the 7th
floor.

 

All other terms and conditions
of the Master Lease shall apply to this premises expansion.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centurion
  Southwest, LLC

  	
   

  	
  Sento
  Corporation

  
	
  By:

  	
   

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
  Its:

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"}]]