Document:

Exhibit
10.5

 

SECOND
AMENDMENT TO LEASE AGREEMENT

 

This SECOND AMENDMENT TO LEASE AGREEMENT (this “Amendment”)made
and entered into on this 9th day of December, 2005, by and between BAY PACIFIC
CORPORATION, hereinafter referred to as “Landlord,” and SENTO CORPORATION (“Tenant”).  All capitalized terms not otherwise defined
herein shall have the meanings given to such terms in the lease (as defined
below).

 

RECITALS

 

WHEREAS, on April 22, 2005, Landlord and Tenant
entered into a certain Lease Agreement (the “Lease”) providing for the Lease by
Landlord to Tenant of the certain demised Premises (“Leased Premises”)
containing approximately 8,397 gross rentable square feet, located on the 4th
floor of the office building (the “Building”) at 420 East South Temple, Suite
400, Salt Lake City, Utah for the rental and on the terms and conditions more
particularly setforth in said Lease Agreement; and

 

WHEREAS, the parties entered into that certain First
Amendment to Lease Agreement dated November 16, 2005 whereby Tenant expanded its
premises by an additional 3,655 rentable square feet (“First Amendment”); and

 

WHEREAS, the parties hereto desire to amend the Lease
in certain respects among other things, Tenant desires to expand the Premises
by an additional 792 rentable square feet.

 

NOW, THEREFORE, for and in consideration of the mutual
promises herein contained, the parties hereto agree that the said Lease
Agreement shall be and the same is hereby amended as follows:

 

1.                                       Article 1(a) 
Premises.  That certain floor area containing
approximately 12,052 gross rentable square feet (the “Leased Premises”) on the
4th floor shall be expanded by 792 contiguous rentable square feet so the total
square footage for the Leased Premises shall be 12,844 described on Exhibit A
attached hereto by this reference incorporated herein.

 

2.                                       Article 1(d) Parking.  The use of 48 unreserved parking stalls in
the covered parking structure shall be increased by 4 stalls so the total
number of nonexclusive parking stalls shall be 52 (this is a ratio of four (4)
parking stalls per every 1,000 rentable square feet under lease).

 

3.                                       Article 3.1 Basic Rental Payments.   Basic Annual Rent as described in paragraph
3.1 is hereby amended and replaced in its entirety by the following.

 

 

3.1           Basic Annual Rent.  Tenant
agrees to pay to Landlord as basic annual rent (the “Basic Annual Rent”) at
such place as Landlord may designate, without prior demand therefore and
without any deduction or set off whatsoever the following

 

	
  Year

  	
   

  	
  Annual NNN Rate

  Per Sq. Ft. Per Year

  	
   

  	
  Rentable

  Sq. Ft.

  	
   

  	
  Annual Triple Net (NNN) Rent Per Year

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jan. 1,2006 - June 30, 2006

  	
   

  	
  $

  	
  10.00

  	
   

  	
  12,844

  	
   

  	
  $

  	
  64,220.00

  	
   

  
	
  July 1, 2006 - June 30, 2007

  	
   

  	
  10.25

  	
   

  	
  12,844

  	
   

  	
  131,651.00

  	
   

  
	
  July 1, 2007 - June 30, 2008

  	
   

  	
  10.51

  	
   

  	
  12,844

  	
   

  	
  134,990.44

  	
   

  
	
  July 1, 2008 - June 30, 2009

  	
   

  	
  10.77

  	
   

  	
  12,844

  	
   

  	
  138,329.88

  	
   

  
	
  July 1, 2009 - June 30, 2010

  	
   

  	
  11.04

  	
   

  	
  12,844

  	
   

  	
  141,797.76

  	
   

  
	
  July 1, 2010 - June 30, 2011

  	
   

  	
  11.31

  	
   

  	
  12,844

  	
   

  	
  145,265.64

  	
   

  
										

 

Said
Basic Annual Rent shall be due and payable in twelve (12) equal monthly
installments with the exception of January 1, 2006 through June 30, 2006 which
shall be payable in six (6) equal installments to be paid in advance on or
before the first day of each calendar month during the term of the Lease.

 

4.                                       Additional Rent (c).  Estimated
Costs as defined in Article 4.1(c) shall be changed from $69,299.00 to
$73,853.00.

 

5.                                       Article 4.1(d).  Tenant’s
Proportionate Share of Basic Costs shall be increased from 8.55% to 9.12%.

 

6.                                       Tenant Improvements.  Landlord
shall cause to be constructed tenant improvements in the Leased Premises as
identified on Exhibit A attached hereto and by this reference made a part
hereof, using agreed upon material in a timely and workmanlike manner
diligently prosecuting until complete. 
Landlord shall provide an allowance (in addition to any previous tenant
improvement allowance afforded in Amendment One) to complete such improvements
in an amount not to exceed $18,117.00. 
Any amount exceeding $18,117.00 shall be the responsibility of Tenant.  The $18,117.00 may be used for hard and soft
construction costs, wiring, cabling, or furniture, fixtures, and
equipment.  The $18,117.00 may be used
for tenant improvements on the original expansion space per Amendment One or
may be converted into rent abatement at Tenant’s election.  Any furniture, fixtures, and equipment
provided by Tenant in addition to the aforementioned improvement allowance
shall remain the property of Tenant upon termination of the Lease.

 

7.                                       Commencement Date.  This Amendment shall take effect and rent
shall commence per the schedule above as the new Article 3.1 of the Lease on
the latter of January 1, 2006 or 

 

 

“Substantial Completion”
(per Section 3 of the Rider to the Lease) of tenant improvements.  “Substantial Completion” to be defined as the
delivery by the appropriate municipal authority of Temporary Certificates of
Occupancy.

 

All of the terms,
covenants, provisions and agreements of the said Lease dated April 22, 2005 and
as amended November 16, 2005 and as amended herein shall remain in full force
and effect.

 

IN WITNESS WHEREOF, THIS
AMENDMENT has been executed the day and year first above written.

 

	
   

  	
  LANDLORD:

  	
   

  	
  BAY PACIFIC CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  	
  SENTO CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:Exhibit 10.6

 

LEASE AMENDMENT NUMBER FOUR

 

This LEASE AMENDMENT NUMBER FOUR entered into this 27th
day of January, 2006 (the “Fourth Amendment”), by and between AP SOUTHEAST PORTFOLIO PARTNERS, L.P., a Delaware limited
partnership (the “Landlord”) and SENTO
CORPORATION, a Utah corporation, successor in interest to Xtrasource, Inc.
(the “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Tenant’s predecessor and Landlord’s
predecessor entered into that certain Office-Warehouse Lease Agreement dated December 6,
1994 (the “Original Lease”), as amended by that certain First Amendment to
Lease dated August 22, 1995 (the “First Amendment”), as further amended by
that certain Lease Amendment Number Two dated May 17, 1999 (the “Second
Amendment”); as further amended by that certain Lease Amendment Number Three
dated April 1, 2005 (the “Third Amendment”); and

 

WHEREAS, Landlord and Tenant’s predecessor entered
into a Lease Assignment and Assumption of Tenant’s Interest, whereby the Lease
was assigned by Customer Access Resources, Inc., to XtraSource, Inc.,
pursuant to a Lease Assignment and Assumption of Tenant’s Interest dated May 9,
2000 (the “Assignment Agreement”);

 

WHEREAS, the Lease was assigned to Tenant pursuant to
a Lease Assignment and Assumption of Tenant’s interest dated November, 2004
(the “Second Assignment Agreement”) (the Original Lease, First, Second and
Third Amendments, Assignment Agreement and Second Assignment Agreement
collectively referred to as the “Lease”), for space comprising approximately
21,500 square feet, located at 3645 Trust Drive, City of Raleigh, County of
Wake, State of North Carolina; and

 

WHEREAS, the parties hereto desire to alter and modify
said Lease in the manner hereinafter set forth,

 

NOW
THEREFORE, in consideration of the mutual and reciprocal promises contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree
to amend the Lease as follows:

 

1.Premises.  Effective on the earlier of the date that the
improvements to the Expansion Premises are deemed substantially complete and
Tenant can commence its business operations or April 1, 2006 (as modified
by Section 6 of the Workletter) (the “Expansion Premises Commencement Date”),
Section One of the Lease, entitled “Demise of Premises”, is amended to
provide that the Premises shall include the space shown in Exhibit B-1
attached, approximately 9,473 square feet, and located in the 3645 Building at
3661 Trust Drive, Raleigh, Wake County, North Carolina (the “Expansion Premises”).  Collectively, the original Premises and
Expansion Premises shall contain approximately 30,973 square feet.  Effective on the Expansion Premises
Commencement Date, Tenant’s Proportionate Share, as defined, is to be increased
to sixty-one and 149/1000 percent (61.149%) based upon the Building containing
50,652 square feet.

 

1

 

2.Term.  Effective on the Expansion Premises
Commencement Date, Section Two of the Lease, entitled “Term”, shall be
amended to provide that the Term of the Expansion Premises shall extend for
eighty-four months so that the lease of the Expansion Premises is expected to
expire on March 31, 2013, and extend the Term of the Original Premises so
that the lease for that space expires sixty full months after the Expansion
Premises Commencement Date, which is expected to be March 31, 2011.

 

3.Base Rent.  Effective on the Expansion
Premises Commencement Date, Section Three of the Lease, entitled “Rent”,
shall be amended to provide that Minimum Rent from the Expansion Premises
Commencement Date through the extended Term shall be $1,372,512.84, to be
payable in monthly installments in accordance with the following rent schedule (which
shall replace the rent schedule provided in the amended Lease):

 

	
  MONTHS

  	
   

  	
  Original

  Premises

  Monthly Rent

  	
   

  	
  Expansion

  Premises

  Monthly Rent

  	
   

  	
  Total Monthly

  Rent

  	
   

  	
  Cumulative Rent

  	
   

  
	
  4/1/06-3/31/07

  	
   

  	
  $

  	
  12,823.85

  	
   

  	
  $

  	
  6,315.33

  	
   

  	
  $

  	
  19,139.18

  	
   

  	
  $

  	
  229,670.16

  	
   

  
	
  4/1/07-3/31/08

  	
   

  	
  $

  	
  13,112.39

  	
   

  	
  $

  	
  6,457.43

  	
   

  	
  $

  	
  19,569.82

  	
   

  	
  $

  	
  234,837.84

  	
   

  
	
  4/1/08-3/31/09

  	
   

  	
  $

  	
  13,407.42

  	
   

  	
  $

  	
  6,602.72

  	
   

  	
  $

  	
  20,010.14

  	
   

  	
  $

  	
  240,121.68

  	
   

  
	
  4/1/09-3/31/10

  	
   

  	
  $

  	
  13,709.09

  	
   

  	
  $

  	
  6,751.28

  	
   

  	
  $

  	
  20,460.37

  	
   

  	
  $

  	
  245,524.44

  	
   

  
	
  4/1/10-3/31/11

  	
   

  	
  $

  	
  14,017.54

  	
   

  	
  $

  	
  6,903.19

  	
   

  	
  $

  	
  20,920.73

  	
   

  	
  $

  	
  251,048.76

  	
   

  
	
  4/1/11-3/31/12

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  7,058.51

  	
   

  	
  $

  	
  7,058.51

  	
   

  	
  $

  	
  84,702.12

  	
   

  
	
  4/1/12-3/31/13

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  7,217.32

  	
   

  	
  $

  	
  7,217.32

  	
   

  	
  $

  	
  86,607.84

  	
   

  
	
  Total Rent:

  	
   

  	
  $

  	
  1,372,512.84

  	
   

  
																			

 

The
above rent schedule does not include monthly deposits for taxes, insurance
and common area maintenance to be computed annually in accordance with Exhibit E
to this Lease.

 

4.Brokers’ Commissions.  Section 29 of the Lease, entitled “Leasing
Commissions”, shall be amended to provide that Tenant has not dealt with any
real estate broker, finder or other person with respect to this Fourth Amendment
and the lease of the Expansion Premises, except for CB Richard Ellis, through
John Daly.

 

5.Option to Renew.  Tenant shall have the following three
options:

 

1.               Effective on the
Expansion Premises Commencement Date, Exhibit G, Section Four (the “Extension
Right”), shall be amended to extend Tenant’s option so that it has the right
and option to extend the Lease of the Original Premises for an additional two year
term upon the expiration of the Original Premises Term, upon written notice to
Landlord given two hundred seventy (270) days prior to the commencement of the
extension period under the terms and conditions stated in Exhibit G, Section Four,
as amended by the Second Amendment.  Per
this Lease, any renewal or extension of the Term at the “then current market
rate” shall employ the definition contained in Exhibit C of “Fair Market
Rate”.

 

2

 

2.               The Extension Right
shall be amended to provide that if Tenant exercises its Early Termination
Right on its lease of the Expansion Premises, it may extend the Lease of the
Original Premises for an additional five year term, upon written notice to
Landlord given two hundred seventy (270) days prior to the commencement of the
extension period under the terms and conditions stated in Exhibit G, Section Four,
as amended by the Second Amendment.  Per
this Lease, any renewal or extension of the Term at the “then current market
rate” shall employ the definition contained in Exhibit C of “Fair Market
Rate”

 

3.               The Extension Right
shall be amended to provide that upon the expiration of the Expansion Premises
Term, Tenant shall have the right and option to extend the Lease of either all
of the Premises or the Original Premises, upon written notice to Landlord
provided at least one year prior to the commencement of the extension period
under the lesser of market terms and conditions (as defined in Exhibit C)
or increased Rent of 2.25% with annual increases of 2.25%.

 

6.Termination Option.  Effective on the Expansion Premises
Commencement Date, the following, “Termination Option”, shall be incorporated
into Section Five of Exhibit G., of the Lease:

 

Tenant
may elect to terminate its lease of the Expansion Premises (“Termination Option”)
effective as of on the last day of the month that is sixty full months after
the Expansion Premises Commencement Date (the “Early Termination Date”), by
giving Landlord written notice (“Tenant’s Notice”) at least nine months prior
to the Early Termination Date, provided that: (1) on or before the Early
Termination Date, Tenant has paid Landlord all amounts due and owing under the
Lease; and (2) Tenant pays to Landlord concurrently with Tenant’s Notice a
termination fee equal to: (i) fifteen percent of Tenant’s remaining rental
obligation for the lease of the Expansion Premises, plus (ii) the
unamortized portion of Landlord’s Costs calculated by amortizing Landlord’s
Costs over the Term on a daily basis, plus interest thereon at the rate of 9%
per annum. “Landlord’s Costs” means Landlord’s costs of tenant improvement
costs, the remainder of any amortized tenant improvements costs and brokerage
commissions. Tenant’s right to exercise the Termination Option is conditioned
on Tenant not being in default or assigned its interest in the Lease (unless
the assignment is to an affiliate or subsidiary of Tenant) at the time of
exercise of the Termination Option or on the Early Termination Date.  If the Termination Option is timely
exercised, Tenant will deliver possession of the Expansion Premises to Landlord
on the Early Termination Date in accordance with the terms of the Lease and all
other terms and provisions will apply as if the Lease had expired according to
its terms, including Tenant’s obligation for payment of any expenses
attributable to periods prior to the Early Termination Date at such time as
such obligation is determined. If Tenant fails to timely give notice, Tenant
will be deemed to have waived its right to terminate under this Paragraph.

 

7.Expansion
Premises Improvements.  The attached Workletter is incorporated into
the Lease for the purpose of making improvements to the Expansion Premises.

 

3

 

8.Notices.  All notices to be sent to the Raleigh facility address with a copy to:

 

Sento Corporation

420 E South Temple Suite 400

Salt Lake City, UT 84111

Attention:  Mr. Anthony
Sansone, Chief Financial Officer

 

9.Miscellaneous.  The foregoing is intended to be an
addition and a modification to the Lease. Unless otherwise defined herein, all
capitalized terms used in this Fourth Amendment shall have the same definitions
ascribed in the Lease.  Except as
modified and amended by this Fourth Amendment, the Lease shall remain in full
force and effect.  If anything contained
in this Fourth Amendment conflicts with any terms of the Lease, then the terms
of this Fourth Amendment shall govern and any conflicting terms in the Lease
shall be deemed deleted in their entirety.

 

10.Acknowledgment.   Landlord and Tenant acknowledge that the
other party has complied with all of its obligations under said Lease to date,
and, to the extent not expressly modified hereby, all of the terms and
conditions of said Lease shall remain unchanged and in full force and effect.

 

  IN WITNESS WHEREOF, Tenant and Landlord
have caused this instrument to be executed as of the date first above written,
by their respective officers or parties thereunto duly authorized.

 

Tenant:

 

	
  SENTO
  CORPORATION

  	
   

  
	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Landlord:

  	
   

  
	
   

  	
   

  
	
  AP
  SOUTHEAST PORTFOLIO PARTNERS, LP

  	
   

  
	
  a Delaware
  limited partnership

  	
   

  
	
  By: Highwoods Properties, Inc., its manager

  	
   

  
	
  a Maryland corporation

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
  Robert G. Cutlip, Senior Vice President

  	
   

  
	
  and Regional Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Corporate Seal:

  	
   

  
							

 

4

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