THIRD AMENDMENT TO LEASE

Exhibit 10.7

THIRD AMENDMENT TO LEASE

THIS AGREEMENT made and entered into this 17^th day of May 2006 (the “Effective Date”), by and between West Washington Associates, LLC, a Wisconsin limited liability company (“Landlord”), and Sonic Foundry, Inc., a Maryland Corporation (“Tenant”).

WHEREAS, in a Lease agreement between the above parties (“Lease”), Tenant Leased from Landlord the premises known as Suite 775 of Network222, 222 West Washington Avenue, Madison, WI 53703 (“Premises”), for a term commencing October 1, 2003, upon the covenants and conditions contained therein.

WHEREAS, the parties amended the Lease and the Premises to include Suite 140 as storage space to the Premises in a First Amendment To Lease dated October 1, 2003.

WHEREAS, the parties amended the Lease to add 3,811 of Usable Area to the Premises in a Second Amendment To Lease dated February 11, 2004.

WHEREAS, Landlord and Tenant now desire to amend the Lease on the terms herein stated. (Capitalized terms shall have the meaning ascribed to them in the Lease unless otherwise noted herein.)

THEREFORE, in consideration of the mutual covenants and conditions contained herein the parties hereby agree as follows:

Tenant’s Right of First Offer will be provided under the following terms and conditions:

In the event Tenant exercises such Right of First Offer, the area will be added to the Premises under the terms and conditions so offered and in its entirety unless Landlord agrees to divide such space.

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Tenant has occupied and/or inspected the Premises and knows the condition thereof, and acknowledges that no warranties, expressed or implied, are made with respect thereto, except as provided in this Third Amendment.

All other conditions of the Lease remain unchanged and all terms of the Lease, as amended, are incorporated herein by reference.

This Agreement shall also be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto.

IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date and year above written.

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EXHIBIT B - LANDLORD AND TENANT CONSTRUCTION OBLIGATIONS

LANDLORD’S AND TENANT’S CONSTRUCTION OBLIGATIONS

I. CONSTRUCTION PROCEDURES

Landlord agrees to provide, by Landlord’s designated architect and/or engineer, the following Building Standard architectural and mechanical drawings and specifications (the “Initial Plans”), to be drawn for the Second Expansion Space on Tenant’s behalf and which shall be based upon Tenant’s space plan as shown in Exhibit B-l:

Landlord shall also submit for Tenant’s review architectural drawings for Tenant’s doors, sidelights, cabinetry, and countertops which shall be reviewed and approved by Tenant and Landlord using reasonable discretion.

Tenant covenants and agrees to furnish Landlord the following necessary information for the completion of the Initial Plans on or before May 10, 2006:

Landlord will, within seven (7) days therefrom, complete said plans and submit to Tenant for approval or disapproval. Tenant will inform Landlord of this approval or any corrections of said plans within three (3) days after receipt thereof by Tenant. All such plans are expressly subject to Landlord’s prior written approval, which Landlord will not unreasonably withhold or delay.

Landlord shall provided an Improvement Allowance of Three Hundred Nine Thousand Nine Hundred and Fifty Dollars ($309,950), to pay the cost of Landlord’s Work to be performed in the Second Expansion Space pursuant to this agreement and for the services to be provided by Landlord hereunder. All costs for such work and services (including architectural fees and Landlord’s construction management fee of eight percent (8%) of the cost of the work) will be deducted from the Improvement Allowance. Tenant shall pay to Landlord the cost of work and services in excess of the Improvement Allowance prior to occupancy of the Second Expansion Space. Tenant shall receive a credit to its Base Rent for any unused portion of said allowance using a fifteen (15) year amortization schedule with a discount rate of ten percent (10%).

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Landlord, at its sole cost and expense, will cause said plans to be filed with the appropriate governmental agencies in such form (buildings notice, alteration or other form) as may be required. If Tenant will desire any additional or non-standard work, over and above that specified in Section II hereof, to be performed in the Second Expansion Space by Landlord or by Tenant, Tenant will cause similar plans and specifications for such work to be drawn at Tenant’s sole expense, either by arranging therefor with Landlord’s architect and/ or engineer, or by consultants of its own selection. All such plans and specifications for additional or non-standard work will be submitted to Landlord with Tenant approved and/ or corrected Initial Plans (hereinafter referred to as the “Final Plans”) for Landlord’s review and approval. Landlord reserves the right to give directives to Tenant’s architect or engineer, at Tenant’s expense, for the purpose of insuring that such additional or non-standard work conforms to the Building Standards. Landlord covenants it will not unreasonably withhold or delay such review.

If Landlord agrees to perform, at Tenant’s request, and upon submission by Tenant of necessary plans and specifications, any additional or non-standard work over and above that specified in Section II hereof, such work will be performed by Landlord, at Tenant’s sole expense, as a Tenant extra. Prior to commencing any such work requested by Tenant, Landlord will submit to Tenant written estimates of the cost of any such work as indicated on Final Plans. If Tenant will fail to approve or disapprove any such estimate within one (1) week from the date of submission thereof by Landlord, then Landlord will be authorized to proceed thereon. Tenant agrees to pay Landlord, promptly upon being billed therefor, the cost of all such work, together with eight percent (8%) of the cost for Landlord’s fee; Tenant agrees that in the event of default of payment thereof, Landlord will (in addition to all other remedies) have the same rights as in the event of default of payment or rent under the Lease.

In addition, if Tenant fails to supply to Landlord any of the above specified information within twenty (20) days after the dates so specified, Landlord may, at it’s option, declare a default under this Lease and exercise any of Landlord’s remedies for default thereunder, including terminating this Lease. If Landlord so terminates the Lease, Tenant will pay Landlord for all expenses incurred by Landlord in preparing the Initial Plans, and/ or Final Plans or in preparing the Second Expansion Space for occupancy by Tenant.

Landlord will permit Tenant and it agents reasonable access to the Second Expansion Space during normal working hours prior to the date specified for the commencement of Tenant’s occupancy under this Lease, in order that Tenant may perform through its own contractors such work and decorations as Tenant may desire at the time that Landlord’s contractors are working in the Second Expansion Space. All contractors engaged by Tenant as permitted by Landlord will be bondable, licensed contractors, possessing good labor relations, capable of performing quality workmanship and working in harmony with Landlord’s general contractor and other contractors on the job. Such license is further conditioned upon Workers’ Compensation and public liability insurance and property damage insurance, all in amounts and with companies and on forms satisfactory to Landlord, being provided and at all times maintained by Tenant’s contractors engaged in the performance of the work, and certificates of such insurance being furnished to Landlord, prior to proceeding with the work. If at any time such entry will cause disharmony or interference with Landlord’s mechanics or contractors, this license may be withdrawn by Landlord upon forty-eight (48) hours written notice to Tenant. Such entry will

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be deemed to be subject to all of the terms, covenants, provisions and conditions of the Lease except as to the covenant to pay rent. Landlord will not be liable in any way for any injury, loss or damage which may occur to Tenant, its employees, contractors, agents, workmen and mechanics, or any one or more of them, or to any of Tenant’s decorations or installations so made prior to commencement of the term of the Lease, the same being solely at Tenant’s risk and Tenant hereby agrees to indemnify and hold Landlord harmless form any and all claims therefor or arising therefrom.

Landlord will cause the repair or replacement of any defects in material or workmanship, if any, in the improvements installed by Landlord, if Landlord receives written notification of such defect from Tenant within the period of one (1) year after the date of substantial completion of the Building. Tenant’s sole and exclusive remedy against Landlord will be for the repair. Landlord will not be responsible for any defect of any nature in the improvements installed by Landlord of which Landlord is not so notified within such one (1) year period. LANDLORD MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, IN IMPROVEMENTS EXCEPT THE WARRANTIES EXPRESSLY SET FORTH HEREIN. TENANT’S SOLE REMEDY FOR THE BREACH OF ANY APPLICABLE WARRANTY WILL BE THE REMEDY SET FORTH HEREIN. Tenant agrees that no other remedy, including without limitation incidental or consequential damages for lost profits, injury to person or property, or any other incidental or consequential loss will be available to Tenant.

II. LANDLORD’S WORK

The Second Expansion Space will be provided in “as is” condition except for the work provided herein, which will be “Landlord’s Work”. Landlord agrees to perform the following work in the Second Expansion Space described herein and shown on the floor plan attached hereto to provide Tenant new, fully finished, “turn-key” office space (subject to the Improvement Allowance), said work be commenced after Tenant has approved the Initial Plans:

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III. TENANT’S WORK

All work, except for that defined as Landlord Work herein, will be performed by Tenant and deemed to be “Tenant’s Work”. Tenant will do and perform at its expense all Tenant’s Work

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diligently and promptly. Before doing any Tenant’s Work, Tenant must receive prior written permission from Landlord. No work performed by Tenant is in lieu of current rent or an advance rental payment, nor is any such work deemed of any value to Landlord at the termination or cancellation of this Lease. Tenant’s Work will include, but not be limited to the following:

Tenant’s construction will comply in all respects with applicable federal, state, county, and local statutes, ordinances, regulations, laws, and codes. Tenant will be responsible for all necessary permits and approvals required to pursue Tenant’s work. Tenant’s work will not hinder or interfere with the conducting of business by other tenants. Tenant’s contractor or subcontractors will not at any time damage, injure, interfere with or delay any other construction within the Building.

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EXHIBIT C - FUTURE ELEVATOR CORE

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FOURTH AMENDMENT TO LEASE

THIS AGREEMENT made and entered into this 5^th day of July 2006 (the “Effective Date”), by and between West Washington Associates, LLC, a Wisconsin limited liability company (“Landlord”), and Sonic Foundry, Inc., a Maryland Corporation (“Tenant”).

WHEREAS, in a Lease agreement between the above parties (“Lease”), Tenant Leased from Landlord the premises known as Suite 775 of Network222, 222 West Washington Avenue, Madison, WI 53703 (“Premises”), for a term commencing October 1, 2003, upon the covenants and conditions contained therein.

WHEREAS, the parties amended the Lease and the Premises to include Suite 140 as storage space to the Premises in a First Amendment To Lease dated October 1, 2003.

WHEREAS, the parties amended the Lease to add 3,811 of Usable Area to the Premises in a Second Amendment To Lease dated February 11, 2004.

WHEREAS, in a Third Amendment to Lease dated May 12, 2006 the parties amended the Lease to add the Second Expansion Space consisting of approximately 8,911 of Rentable Square Feet on the first floor of the Building to the Premises; and Tenant exercised its first of two three (3) year options to extend as set forth in Section 18.18 of the Lease.

WHEREAS, Landlord and Tenant now desire to amend the Lease on the terms herein stated, (Capitalized terms shall have the meaning ascribed to them in the Lease unless otherwise noted herein).

THEREFORE, in consideration of the mutual covenants and conditions contained herein the parties hereby agree as follows:

The Financing Allowance shall be amortized over the sixty-one (61) month term of the Second Expansion Space at an annual rate of 12%. The resulting monthly payment of $2,529.32 (the “Financing Payment”) shall be paid by Tenant monthly in advance simultaneously with the monthly Base Rent due for the Second Expansion Space. Accordingly, the combined monthly Base Rent and Financing Payment schedule for the Second Expansion Space shall be as follows:

Tenant has occupied and/or inspected the Premises and knows the condition thereof, and acknowledges that no warranties, expressed or implied, are made with respect thereto, except as provided in this Fourth Amendment.

All other conditions of the Lease remain unchanged and all terms of the Lease, as amended, are incorporated herein by reference.

This Agreement shall also be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto.

IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date and year above written.

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