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Exhibit 10.21    
    

Silicon Valley Bank  

Amended and Restated

Schedule to Loan and Security Agreement  

	Borrower:	 	Sento Corporation
	 	 	Sento Technical Services Corporation
	

Address:	
 	

808 East Utah Valley Drive
	 	 	American Fork, UT 84003
	

Date:	
 	

May    , 2004

        This
Amended and Restated Schedule forms an integral part of the Loan and Security Agreement between Silicon Valley Bank and the
above-borrower dated April 15, 2003, and amends and restates in its entirety the prior 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 and 3 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
	 	 	 	 	 

1

 

	

 	
 	

 	
 	

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 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,
25% 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 II cannot be repaid and reborrowed. Term Loan #2 shall be repaid as provided for herein.
	

 	
 	

 	
 	

As used in this Agreement, "Loans" includes the Accounts Loans, Term Loan #1 and Term Loan #2.
	 	 	 	 	 

2

 

	

 	
 	

 	
 	

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.
	 	 	 	 	 

3

 

	

 	
 	

 	
 	

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 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 shall be a rate equal to            % per annum [a fixed rate equal to the yield on United States Treasury Notes with a three year maturity on the date this Agreement is
executed plus 4.5% per annum]. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed.
	 	 	 	 	 

4

 

	

 	
 	

 	
 	

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: Either (1) or (2) below, at Borrower's option, to be determined by Borrower on or before March 31, 2005:

	

 	

(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 #2 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: $45,000 payable as follows: (i) $22,500, payable concurrently herewith and (ii) $22,500, payable on or before June 30, 2005.
	

 	
 	

 	
 	

With respect to Term Loan #1: $                        , payable concurrently herewith.
	

 	
 	

 	
 	

With respect to Term Loan #2: $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.
	 	 	 	 	 

5

 

	

	
4.	
 	
MATURITY DATE

(Section 6.1):	
 	

Maturity Date:  June 30, 2006.
	

 	
 	

 	
 	

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 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.
	

	
5.	
 	
Financial Covenants

(Section 5.1):	
 	

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

 	
 	

    Adjusted

    Quick Ratio:	
 	

Commencing with the month ending March 31, 2004, Borrower shall maintain an Adjusted Quick Ratio of not less than 2.0 to 1.0.
	 	 	 	 	 

6

 

	

 	
 	
    Minimum Debt

    Service Coverage

    Ratio:	
 	

Commencing with the month ending March 31, 2004 and each month ending thereafter, Borrower shall maintain a Debt Service Coverage Ratio of not less than 1.50 to 1.0.
	

 	
 	

    Definitions.	
 	

For purposes of the foregoing financial covenants, the following term shall have the following meaning:
	

 	
 	

 	
 	

"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 then outstanding principal balance of the Accounts Loans.
	

 	
 	

 	
 	

"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 interest, depreciation and other amortization expenses, 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 calculated upon the average of such items for the specific month for which the Debt Service Coverage is being calculated and the 2 months immediately preceding such month (for example, the Debt Service Coverage for the
month ending May 31, 2004 will be calculated based on the average of Borrower's earnings, interest, depreciation, etc. for the three months of March, April and May 2004. For the month ending June 30, 2004, Debt Service Coverage will be
calculated based on the average of Borrower's earnings, interest, depreciation, etc. for the three months of April, May and June 2004).
	

 	
 	

 	
 	

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

	
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, within twenty days after the end of each month.
	 	 	 	 

7

 

	

 	

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 Borrowing Base Certificate, in form specified by Silicon, signed by the Borrower's Chief Executive Officer, President, Chief Financial Officer or Controller, within thirty days after the end of each month.
	

 	

6.	
 	

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

 	

7.	
 	

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.
	

 	

8.	
 	

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.
	

 	

9.	
 	

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.
	

 	

10.	
 	

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

8

 

	

 	

(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)	
 	
Intercreditor Agreement.    Borrower shall cause the Intercreditor Agreement between Wyoming Industrial Development Corporation and Silicon, regarding to continue in full
force and effect throughout the term of this Agreement.
	

 	

(5)	
 	
Indebtedness.    Borrower shall not create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted
Indebtedness.
	

 	

(6)	
 	
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.

	

Borrower:	
 	

Silicon:
	

 	
 	

SENTO CORPORATION	
 	

SILICON VALLEY BANK
	

 	
 	

By	
 	

	
 	

By	
 	

	 	 	 	 	President or Vice President	 	 	 	 
	

 	
 	

By	
 	

	
 	

Title	
 	

	 	 	 	 	Secretary or Ass't Secretary	 	 	 	 
	

Borrower:	
 	

 	
 	

 
	

 	
 	

SENTO TECHNICAL SERVICES CORPORATION	
 	

 	
 	

 
	

 	
 	

By	
 	

	
 	

 	
 	

 
	 	 	 	 	President or Vice President	 	 	 	 
	

 	
 	

By	
 	

	
 	

 	
 	

 
	 	 	 	 	Secretary or Ass't Secretary	 	 	 	 

9

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Exhibit 10.22  

NEITHER THIS WARRANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE, TRANSFER OR OTHER
DISPOSITION OF THIS WARRANT OR SAID SHARES MAY BE EFFECTED WITHOUT (I) AN EFFECTIVE REGISTRATIONSTATEMENT RELATED THERETO, (II) AN OPINION OF COUNSEL FOR THE HOLDER THAT SUCH
REGISTRATION IS NOT REQUIRED OR (III) RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT
REQUIRED.

 
 

WARRANT TO PURCHASE SHARES
  OF COMMON STOCK OF
  SENTO CORPORATION    
    

(Void
after 5:00 p.m., August 1, 2005) 

        This
certifies that Laurie S. Roop (the "Holder"), for value received, is entitled to purchase from Sento Corporation, a Utah corporation
(the "Company"), having a place of business at 808 East Utah Valley Drive, American Fork, Utah 84003, a maximum of Twenty Thousand
(20,000)fully paid and nonassessable shares of the Company's Common Stock ("Common Stock") for cash at a
price of Two and 70/100 Dollars ($2.70) per share (the "Stock Purchase Price") at any time or from time to time up to and including 5:00 p.m.
(Mountain time) on the date that is two (2) years from the date of this Warrant (the "Expiration Date"), upon surrender to the Company at its
principal office (or at such other location as the Company may advise the Holder in writing) of this Warrant properly endorsed with the Form of Subscription attached hereto duly filled in and
signed and, if applicable, upon payment in cash or by check of the aggregate Stock Purchase Price for the number of shares for which this Warrant is being exercised determined in accordance with the
provisions hereof. The Stock Purchase Price and the number of shares purchasable hereunder are subject to adjustment as provided in Section 3 of this Warrant. 

        The
Warrant is subject to the following terms and conditions: 

        1.     Exercise; Issuance of Certificates; Payment for Shares. This Warrant is exercisable at the option of the holder of record
hereof, at any time or from time to time, up to the Expiration Date for all or any part of the shares of Common Stock (but not for a fraction of a share), which may be purchased hereunder. The Company
agrees that the shares of Common Stock purchased under this Warrant shall be and are deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date
on which this Warrant shall have been surrendered, properly endorsed, the completed, executed Form of Subscription delivered and payment made for such shares. Certificates for the shares of
Common Stock so purchased, together with any other securities or property to which the Holder hereof is entitled upon such exercise, shall be delivered to the Holder hereof by the Company at the
Company's expense within a reasonable time after the rights represented by this Warrant have been so exercised. In case of a purchase of less than all the shares which may be purchased under this
Warrant, the Company shall cancel this Warrant and execute and deliver a new Warrant or Warrants of like tenor, for the balance of the shares purchasable under the Warrant surrendered upon such
purchase to the Holder hereof within a reasonable time. Each stock certificate so delivered shall be in such denominations of Common Stock as may be requested by the Holder hereof and shall be
registered in the name of such Holder. 

        2.     Shares to be Fully Paid; Reservation of Shares. The Company covenants and agrees that all shares of Common Stock which may
be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and free from all preemptive rights of any
shareholder and free of all taxes, liens and charges with respect to the issue thereof. The Company further covenants and agrees that, during the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized and 

 

reserved,
for the purpose of issue or transfer upon exercise of the subscription rights evidenced by this Warrant, a sufficient number of shares of authorized but unissued Common Stock, or other
securities and property, when and as required to provide for the exercise of the rights represented by this Warrant. The Company will take all such action as may be necessary to assure that such
shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any domestic securities exchange upon which the Common Stock
may be listed; provided, however, that the Company shall not be required to effect a registration under Federal or State securities laws with respect to such exercise. 

        3.     Adjustment of Stock Purchase Price and Number of Shares. The number and kind of securities issuable upon the exercise of
this Warrant and the Stock Purchase Price of such securities shall be subject to adjustment from time to time upon the happening of certain events as follows: 

        (a)   Subdivision or Combination of Common Stock. If the Company at any time subdivides (by any stock split, stock dividend or
otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, or combines (by reverse stock split or otherwise) one or more classes of its outstanding
shares of Common Stock into a smaller number of shares, the number of shares purchasable upon exercise of this Warrant immediately prior thereto shall be adjusted so that the Holder of this Warrant
shall be entitled to receive the kind and number of shares or other securities of the Company which it would have owned or have been entitled to receive after the happening of any of the events
described above had this Warrant been exercised immediately prior to the happening of such event or any record date with respect thereto. If the Holder is entitled to receive shares of two or more
classes of capital stock of the Company pursuant to the foregoing upon exercise of the Warrant, the Company shall determine the allocation of the adjusted Stock Purchase Price between the classes of
capital stock. After such allocation, the exercise privilege and the Stock Purchase Price of each class of capital stock shall thereafter be subject to adjustment on terms comparable to those
applicable to Common Stock in this Section. An adjustment made pursuant to this paragraph (a) shall become effective immediately after the effective date of such event retroactive to the
record date, if any, for such event. Such adjustment shall be made successively whenever such a payment, subdivision, combination or reclassification is made. 

        (b)   Adjustment in Exercise Price. Whenever the number of shares purchasable upon the exercise of each Warrant is adjusted as
provided in this Section, the Stock Purchase Price payable upon exercise of each Warrant shall be adjusted by multiplying such Stock Purchase Price immediately prior to such adjustment by a fraction,
of which the numerator shall be the number of shares purchasable upon the exercise of each Warrant immediately prior to such adjustment, and of which the denominator shall be the number of shares
purchasable immediately thereafter. 

        4.     Issue Tax. The issuance of certificates for shares of Common Stock upon the exercise of the Warrant shall be made without
charge to the Holder of the Warrant for any issue tax (other than any applicable income taxes) in respect thereof; provided, however, that the Company shall not be required to pay any tax which may be
payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of the then Holder of the Warrant being exercised. 

        5.     No Voting or Dividend Rights; Limitation of Liability. Nothing contained in this Warrant shall be construed as conferring
upon the Holder hereof the right to vote or to consent or to receive notice as a shareholder of the Company or any other matters or any rights whatsoever as a shareholder of the Company. No dividends
or interest shall be payable or accrued in respect of this Warrant or the interest represented hereby or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have
been exercised. No provisions hereof, in the absence of affirmative action by the holder to purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of the holder
hereof shall give rise to any liability of such Holder for the Stock Purchase 

2

 

Price
or as a shareholder of the Company, whether such liability is asserted by the Company or by its creditors. 

        6.     Warrants Transferable. Subject to compliance with applicable federal and state securities laws, this Warrant and all
rights hereunder are transferable, in whole or in part, without charge to the holder hereof (except for transfer taxes), upon surrender of this Warrant properly endorsed. Each taker and holder of this
Warrant, by taking or holding the same, consents and agrees that this Warrant, when endorsed in blank, shall be deemed negotiable, and that the holder hereof, when this Warrant shall have been so
endorsed, may be treated by the Company, at the Company's option, and all other persons dealing with this Warrant as the absolute owner hereof for any purpose and as the person entitled to exercise
the rights represented by this Warrant, or to the transfer hereof on the books of the Company any notice to the contrary notwithstanding; but until such transfer on such books, the Company may treat
the registered owner hereof as the owner for all purposes. 

        7.     Transfer to Comply with the Securities Act.

        (a)   This
Warrant and the shares or any other security issued or issuable upon exercise of this Warrant may not be sold, transferred or otherwise disposed of except, in the
opinion of counsel reasonably satisfactory to the Company, to a person who is a person to whom the Warrant may be legally transferred without registration under the Securities Act or any state
securities laws; and such transfer will not violate any applicable law or governmental rule or regulation including, without limitation, any applicable federal or state securities law, and then only
against receipt of an agreement of such person to comply with the provisions of this Section 7 with respect to any resale or other disposition of such securities unless, in the opinion of such
counsel, such agreement is not required. 

        (b)   The
Holder, by acceptance of this Warrant, agrees that the shares to be issued upon exercise hereof are being acquired for the account of the Holder for investment and
not with a view to, or for resale in connection with, the distribution thereof and that the Holder will not offer, sell or otherwise dispose of such shares except under circumstances which will not
result in a violation of the Securities Act and all applicable state securities laws. The Holder represents that the Holder has no present intention of distributing or reselling the shares. 

        (c)   The
Company may cause the following legend, or one of similar substance, to be set forth on each certificate representing shares or any other security issued or issuable
upon exercise of this Warrant, unless counsel for the Company is of the opinion as to any such certificate that such legend is unnecessary: 

        THE
SECURITIES OF THE COMPANY EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND VARIOUS APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BESOLD, TRANSFERRED, PLEDGED
OR ASSIGNED OR A SECURITY INTEREST CREATED THEREIN, UNLESS THE PURCHASE, TRANSFER, ASSIGNMENT, PLEDGE OR GRANT OF SUCH SECURITY INTEREST COMPLIES WITH ALL STATE AND FEDERAL SECURITIES LAWS (I.E., SUCH
SHARES OF COMMON STOCK ARE REGISTERED UNDER SUCH LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE THEREUNDER) AND UNLESS THE SELLER, TRANSFEROR, ASSIGNOR, PLEDGOR OR GRANTOR OF SUCH SECURITY
INTEREST PROVIDES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE TRANSACTION CONTEMPLATED WOULD NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE SECURITIES LAWS. TRANSFERABILITY OF THE SECURITIES IS THEREFORE LIMITED AND 

3

 

INVESTORS
MUST BEAR THE ECONOMIC RISK OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 

        8.     Rights and Obligations Survive Exercise of Warrant. The rights and obligations of the Company, of the holder of this
Warrant and of the holder of shares of Common Stock issued upon exercise of this Warrant, shall survive the exercise of this Warrant. 

        9.     Modification and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of the same is sought. 

        10.   Notices. Any notice, request or other document required or permitted to be given or delivered to the holder hereof or the
Company shall be delivered or shall be sent by certified mail, postage prepaid, to each such holder at its address as shown on the books of the Company or to the Company at the address indicated
therefor in the first paragraph of this Warrant or such other address as either may from time to time provide to the other. 

        11.   Binding Effect on Successors. This Warrant shall be binding upon any corporation succeeding the Company by merger,
consolidation or acquisition of all or substantially all of the Company's assets. All of the obligations of the Company relating to the Common Stock issuable upon the exercise of this Warrant shall
survive the exercise and termination of this Warrant. All of the covenants and agreements of the Company shall inure to the benefit of the successors and assigns of the holder hereof. 

        12.   Descriptive Headings and Governing Law. The description headings of the several sections and paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed
by, the laws of the State of Utah. 

        13.   Lost Warrants. The Company represents and warrants to the Holder hereof that upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory
to the Company, or in the case of any such mutilation upon surrender cancellation of such Warrant, the Company, at its expense, will make and deliver a new Warrant, of like tenor in lieu of the lost,
stolen, destroyed or mutilated Warrant. 

        14.   Fractional Shares. No fractional shares shall be issued upon exercise of this Warrant. In lieu of any fractional shares
which would otherwise be issuable, the Company shall, in its sole discretion, either (i) pay cash equal to the product of such fraction multiplied by the fair market value of one share of
Common Stock on the date of exercise, as determined in good faith by the Company's Board of Directors or (ii) issue the next largest whole number of shares. 

        In
Witness Whereof, the Company has caused this Warrant to be duly executed by its officers, thereunto duly authorized this 1st day of August 2003. 

	

 	
 	
SENTO CORPORATION
	
 	
 	

 Name: Patrick F. O'Neal

President and Chief Executive Officer
	

ATTEST:	
 	

 
	

 Secretary	
 	

 

4

 
EXHIBIT A

SUBSCRIPTION FORM  

        Date:                        

Sento
Corporation

808 East Utah Valley Drive

American Fork, Utah 84003 

Attn:
President and Chief Executive Officer 

Ladies
and Gentlemen: 

        The
undersigned hereby elects to exercise the warrant issued to it by Sento Corporation (the "Company") and dated August 1, 2003
(the "Warrant") and to purchase thereunder            shares of the Common Stock of the Company (the  "Shares") at a purchase price of 2 and 70/100 Dollars ($2.70) per Share or an aggregate purchase price
of                        Dollars ($            ) the
("Purchase Price"). 

        Pursuant
to the terms of the Warrant the undersigned has delivered the Purchase Price herewith in full in cash or by certified check or wire transfer. 

	

 	
 	

Very truly yours,
	

 	
 	

 [Signature]

Name:

Title:

5

QuickLinks

WARRANT TO PURCHASE SHARES OF COMMON STOCK OF SENTO CORPORATION

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