Document:

Form of Note

  
 EXHIBIT 10.2 
  
 SUBORDINATED SECURED PROMISSORY NOTE 
  
 
	 $            
 	 	 San Francisco, California
 

 
  
 FOR VALUE RECEIVED, the undersigned, eGain Communications
Corporation a Delaware corporation (the “Company”), promises unconditionally to pay to the order of Ashutosh Roy, an individual, and its successors or assigns (the “Lender”) during Lender’s regular business hours at
Lender’s offices at 781 Berry Avenue, Los Altos, CA, or at such other place as Lender may from time to time designate,             
($            ) (the “Face Amount”). This Note is one of the Notes issued to the Lender pursuant to that certain Note and Warrant Purchase Agreement, dated as of even date
herewith (the “Note Purchase Agreement”), between the Company and the Lender. THIS NOTE IS SECURED BY THE GRANT OF A SECURITY INTEREST IN ALL ASSETS OF THE COMPANY AS FURTHER PROVIDED IN THE NOTE PURCHASE AGREEMENT. Capitalized terms not
otherwise defined herein shall have the meaning set forth in the Note Purchase Agreement. The following terms shall apply to this Note: 
  
 1.    Interest Rate.    Except as provided by Sections 5 and 9 below, no interest shall be payable by the Company to the Lender under this Note. 
  
 2.    Principal Repayments.    The Company shall repay the entire outstanding Face
Amount on December         , 2007 (the “Maturity Date”). 
  
 3.    Repayment Extension.    If any payment under this Note shall be due on a Saturday, Sunday or any other day on which banks in the State of California are required or
permitted to be closed, such payment shall be made on the next day on which such banks are not required or permitted to be closed and such extension of time shall be included in computing interest under this Note. 
  
 4.    Manner and Application of Payments.    All payments due hereunder shall be
paid in lawful money of the United States of America which shall be legal tender in payment of all debts and dues, public and private, in immediately available funds, without offset, deduction or recoupment. Any payment by check or draft shall be
subject to the condition that any receipt issued therefore shall be ineffective unless the amount due is actually received by the Lender. Each payment shall be applied first to the payment of any and all costs, fees and expenses incurred by or
payable to the Lender in connection with the collection or enforcement of this Note, second to the payment of all unpaid late charges (if any), and third, to the payment of the Face Amount, or in any other manner which Lender may, in its sole
discretion, elect from time to time. 
 5.    Mandatory Prepayment. 
  

        (a)    In the event the Company consummates a Sale Transaction (as defined below), this Note shall
be prepaid in full by the Company on or before the closing of such Sale Transaction by payment of the amount set forth in clause (b) below to Lender. 

 

  
         (b)    In the
event the Company must prepay this Note under subsection (a) immediately above (i) the Company shall pay to the Lender the sum of (i) $2,000,000 minus the aggregate amount of Prepaid Principal (as defined in Section 6) previously paid by the Company
to the Lender (the “Outstanding Principal”), (ii) a deemed interest rate component equal to the amount of interest which would have accrued on the Outstanding Principal from the date of issuance of this Note through the date of prepayment
of such Note (assuming an annual interest rate of 12%, compounded annually, and a 360 day year) and (iii) an interest penalty component which shall equal 20% of the amount of interest which would have accrued on the Outstanding Principal for such
Note between the date of prepayment and the Maturity Date (assuming for this purpose only a deemed annual interest rate of 15%, compounded annually, and a 360 day year). Upon such prepayment, the Company shall not thereafter be obligated to pay, and
the Lender shall not thereafter be entitled to receive payment of, the Face Amount. 
  
         (c)    For purposes of this Section 5, a “Sale Transaction” shall be defined to include any merger, consolidation, or other business combination in which
beneficial ownership of securities representing in the aggregate in excess of 50% of the voting power of the Company are transferred, or a sale of all or substantially all of the Company’s assets. 
  
 6.    Voluntary Prepayment. 
  
         (a)    The Company may prepay this Note in full or in part (provided, however, that no partial
prepayments of this Note shall be allowed in amounts less than $250,000) at any time prior to the Maturity Date upon the provision of ten (10) days prior written notice to the Lender, consistent with the requirements of subsection (b) below.

  
         (b)    In the event the Company elects to
voluntarily prepay this Note under subsection (a) immediately above, the Company shall pay to the Lender the sum of (i) that amount of principal which the Company elects to prepay under this Note (the “Prepaid Principal”), (ii) a deemed
interest rate component equal to the amount of interest which would have accrued on the Prepaid Principal from the date of issuance of this Note through the date of partial prepayment of such Note (assuming an annual interest rate of 12%, compounded
annually, and a 360 day year) and (iii) an interest penalty component which shall equal 20% of the amount of interest which would have accrued on the Prepaid Principal for such Note between the date of prepayment and the Maturity Date (assuming for
this purpose only a deemed annual interest rate of 15%, compounded annually, and a 360 day year). Upon such prepayment, the Face Amount of this Note shall thereupon automatically and without further action by any party be reduced for all purposes
hereunder to the product of (x) the Face Amount immediately prior to such voluntary prepayment and (y) the quotient of the Prepaid Principal and $2,000,000. 
  
 7.    Automatic Modification of Note Repayment Terms Upon Lender Default.    In the event the Company desires to consummate an Additional Closing
and has otherwise fulfilled the requirements for consummation of such Additional Closing, including by having met or exceeded the financial milestones set forth in the Note Purchase Agreement related thereto, and the Lender fails to consummate the
purchase of the Additional Note associated with such Additional Closing desired by the Company (a “Lender Default”), the Lender shall have no right to receive payment from the Company, and the Company shall have no obligation to pay the
Lender, the Face Amount upon the Maturity Date, and, in lieu thereof, the sole obligation of the Company under this 

 
 2 

 Note shall be to pay the Outstanding Principal to the Lender, either on or prior to the Maturity Date (at the election of the Company). The
special rights of the Company under this Section 7 in the event of a Lender Default shall be in addition to the rights of the Company to cancel the Warrants issued by the Company to the Lender in connection with this Note. 
  
 8.    Rights and Remedies upon Default by the Company.    Upon the occurrence of an
Event of Default under the Loan Agreement, Lender, in Lender’s sole discretion and without notice to the Company, may: (a) declare the entire outstanding Face Amount due under this Note, to be immediately due and payable, and the same shall
thereupon become immediately due and payable without presentment, demand or notice, which are hereby expressly waived; (b) exercise its right of setoff against any money, funds, credits or other property of any nature whatsoever of the Company now
or at any time hereafter in the possession of, in transit to or from, under the control or custody of or on deposit with, Lender or any affiliate of Lender in any capacity whatsoever, including, without limitation, any balance of any deposit account
and any credits with Lender or any affiliate of Lender; and (c) exercise any or all rights, powers and remedies provided for in the Loan Documents or now or hereafter existing at law, in equity, by statute or otherwise. 
  
 9.    Remedies Cumulative.    Each right, power and remedy of Lender hereunder,
under the Loan Documents or now or hereafter existing at law, in equity, by statute or otherwise shall be cumulative and concurrent, and the exercise or beginning of the exercise of any one or more of them shall not preclude the simultaneous or
later exercise by Lender of any or all such other rights, powers or remedies. No failure or delay by Lender to insist upon the strict performance of any one or more provisions of this Note or of the Loan Documents or to exercise any right, power or
remedy consequent upon a breach thereof or default hereunder shall constitute a waiver thereof or preclude Lender from exercising any such right, power or remedy. 
  
 10.    Intentionally left blank 
  
 11.    Collection Expenses.    Following the occurrence of an Event of Default hereunder, the Company agrees to pay to Lender upon demand all costs
and expenses, including, without limitation, all attorney’s fees and court costs incurred by Lender in connection with the enforcement or collection of this Note (whether or not any action has been commenced by Lender to enforce or collect this
Note) or in successfully defending any counterclaim or other legal proceeding brought by the Company contesting Lender’s right to collect amounts due hereunder. All of such costs and expenses shall bear interest at the higher of the rate of
interest provided herein or any default rate of interest provided herein, from the date of payment by Lender until repaid in full. 
  
 12.    Interest Rate After Judgment.    If judgment is entered against the Company on this Note, the amount of the judgment entered (which may include principal,
interest, fees, and costs) shall bear interest at the higher of: (a) any default rate of interest provided herein; or (b) the legal rate of interest then applicable to judgments in the jurisdiction in which judgment was entered. 

 
 13.    Maximum Rate of Interest.    Notwithstanding any provision of this
Note or the Loan Documents to the contrary, the Company shall not be obligated to pay interest pursuant to this Note in excess of the maximum rate of interest permitted by the laws of any state determined 

 
 3 

 to govern this Note or the laws of the United States applicable to loans in such state. If any provisions of this Note shall ever be construed
to require the payment of any amount of interest in excess of that permitted by applicable law, then the interest to be paid pursuant to this Note shall be held subject to reduction to the amount allowed under applicable law and any sums paid in
excess of the interest rate allowed by law shall be applied in reduction of the principal balance outstanding pursuant to this Note. The Company acknowledges that it has been contemplated at all times by the Company that the laws of the State of
California will govern the maximum rate of interest that it is permissible for Lender to charge the Company pursuant to this Note. Company represents that to the best of its knowledge the usury laws of California do not apply to this transaction due
to the exemption in Section 25118 of the California Corporations Code, and Company is not aware of any law of the State of California that would apply to this transaction that would have the effect of imposing a maximum rate of interest or otherwise
requiring a reduction as provided in this Section 13. 
  
 14.    Certain Waivers by the
Company.    The Company waives demand, presentment, protest and notice of demand, of non-payment, of dishonor and of protest of this Note. Lender, without notice to or further consent of the Company and without in any respect
compromising, impairing, releasing, lessening or affecting the obligations of the Company hereunder or under any of the Loan Documents, may: (a) release, surrender, waive, add, substitute, settle, exchange, compromise, modify, extend or grant
indulgences with respect to (i) this Note, (ii) any of the Loan Documents, and (iii) all or any part of any collateral or security for this Note; (b) complete any blank space in this Note according to the terms upon which the loan evidenced hereby
is made; and (c) grant any extension or other postponements of the time of payment hereof. 
  
 15.    Choice of Law; Forum Selection; Consent to Jurisdiction.    This Note shall be governed by, construed and interpreted in accordance with the laws of the State of California
(excluding the choice of law rules thereof). The Company hereby (a) agrees that all disputes and matters whatsoever arising under, in connection with, or incident to this Note shall be litigated, if at all, in and before a court located in the State
of California to the exclusion of the courts of any other state or country, and (b) irrevocably submits to the non-exclusive jurisdiction of any California court or federal court sitting in the State of California in any action or proceeding arising
out of or relating to this Note, and hereby irrevocably waives any objection to the laying of venue of any such action or proceeding in any such court and any claim that any such action or proceeding has been brought in an inconvenient forum. A
final judgment in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. 
  
 16.    Subsequent Holders.    In the event that any holder of this Note transfers this Note for value, the Company
agrees that except with respect to subsequent holders with actual knowledge of a claim or defense, no subsequent holder of this Note shall be subject to any claims or defenses which the Company may have against a prior holder (which claims or
defenses are not waived as to prior holders), all of which are waived as to the subsequent holder, and that all such subsequent holders shall have all of the rights of a holder in due course with respect to the Company even though the subsequent
holder may not qualify, under applicable law, absent this paragraph, as a holder in due course. 

 
 4 

  
 17.    Invalidity of Any
Part.    If any provision or part of any provision of this Note shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision (or any remaining part of any provision) of this Note, and this Note shall be construed as if such invalid, illegal or unenforceable provision (or part thereof) had never been contained in this Note, but only to the extent of its
invalidity, illegality or unenforceability. 
  
 18.    Service of
Process.    The Company hereby consents to process being served in any suit, action or proceeding instituted in connection with this Note by the mailing of a copy thereof to the Company by certified mail, postage prepaid,
return receipt requested. The Company hereby irrevocably agrees that such service shall be deemed to be service of process upon the Company in any such suit, action or proceeding. Nothing in this Note shall affect the right of Lender to serve
process in any other manner otherwise permitted by law, and nothing in this Note will limit the right of Lender otherwise to bring proceedings against the Company in the courts of any other jurisdiction or jurisdictions. 
  
 19.    Notice.    Any notice, demand, request or other communication which Lender or
the Company may be required to give hereunder shall be in writing, shall be effective and deemed received the following business day when sent by overnight mail, upon transmission if sent by facsimile or e- mail, or the third business day after
deposited in first class United States mail, postage prepaid, and shall be addressed as follows, or to such other addresses as the parties may designate by like notice: 
  
 If to the Company: 
  
 eGain
Communications Corporation 
 624 East Evelyn Avenue 
 Sunnyvale, CA 94086 
 Attn:    Eric Smit 
 Chief Financial Officer 
 Phone: (408) 213-3400 
 Fax:     (408) 212-3500 
  
 If to Lender: 
  
 Ashutosh Roy 
 781 Berry Avenue

 Los Altos, CA 94024 
 Phone: (408) 213-3400 

Fax:     (408) 212-3500 
  
 Notwithstanding anything to the contrary, all notices and demands for payment from Lender actually received in writing by the Company shall be considered to be effective upon the receipt thereof by the Company regardless of the
procedure or method utilized to accomplish delivery thereof to the Company. 

 
 5 

  
 20.    Transfers By
Lender.    Lender may, with the prior written consent of the Company, which consent shall not be unreasonably withheld, sell, assign, pledge or transfer its rights to receive payment of up to 40% of the amounts due under this
Note to another Person at any time and from time to time. The Company hereby covenants and agrees to take all steps reasonably requested by Lender to document and effect such transfer of the Lender’s rights under this Note. 

 
 21.    Miscellaneous.    Time is of the essence under this Note. The
paragraph headings of this Note are for convenience only, and shall not limit or otherwise affect any of the terms hereof. This Note and the Loan Documents constitute the entire agreement between the parties with respect to their subject matter and
supersede all prior letters, representations or agreements, oral or written, with respect thereto. No modification, release or waiver of this Note shall be deemed to be made by Lender unless in writing signed by Lender, and each such waiver, if any,
shall apply only with respect to the specific instance involved. No course of dealing or conduct shall be effective to modify, release or waive any provisions of this Note or any of the other Loan Documents. This Note shall inure to the benefit of
and be enforceable by Lender and Lender’s successors and assigns and any other person to whom Lender may grant an interest in the obligations evidenced by this Note and shall be binding upon and enforceable against Borrower and Borrower’s
representatives, successors, heirs and assigns. Whenever used herein, the singular number shall include the plural, the plural the singular, and the use of the masculine, feminine or neuter gender shall include all genders. This Note may be executed
in any number of counterparts, all of which, when taken together shall constitute one Note. 
  
 [REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK] 
  

 
 6 

  
 IN WITNESS WHEREOF, the Company has duly executed this Subordinated Secured
Promissory Note in favor of the Lender as of the day and year first hereinabove set forth. 
  
 
	 eGAIN COMMUNICATIONS CORPORATION
 

 
 
	 
	 By:
 	 	 

	  	 	 Its:     Eric Smit
 
	  	 	 Title:  Chief Financial OfficerSubordination Agreement

  
 EXHIBIT 10.3 
  
 SUBORDINATION AGREEMENT AND CONSENT 
  
 This Subordination Agreement (this “Agreement”), dated as of December 24, 2002, is between Ashutosh Roy, an individual (the “Lender”) and Silicon Valley Bank (“Bank”). 
  
 RECITALS 
  
 A.    eGain Communications Corporation, a Delaware corporation (the “Company”), has obtained a loan from Bank which is secured by a pledge of substantially all of the Company’s assets pursuant to
the terms of that certain Loan and Security Agreement, dated as of March 27, 2002, between Bank and the Company, and that certain Accounts Receivable Purchase Agreement, dated as of September 24, 2002 (in each case, as amended, restated, modified or
supplemented, and including all of the other agreements and documents entered into in connection therewith, the “Loan Documents”). 
  
 B.    The Lender desires to purchase Subordinated Secured Promissory Notes (the “Notes”) issued by the Company pursuant to the terms of that certain Note and Warrant
Purchase Agreement, dated as of even date herewith, between the Company and the Lender (the “Purchase Agreement”). 
  
 C.    The Purchase Agreement provides that the Lender shall obtain warrants to purchase shares of the Company’s Common Stock in connection with Lender’s purchase of the Notes (the “Warrants”).

  
 D.    Bank is willing to allow the Lender to purchase the Notes and the Warrants from the
Company, and to enter into the other transactions contemplated by the Purchase Agreement, but only if the Lender and Bank enter into this Agreement, pursuant to the terms and conditions of which the Lender will subordinate: (i) all of the
Company’s indebtedness and obligations to the Lender, existing now or later (the “Subordinated Debt”) to all of the Company’s indebtedness and obligations to Bank, and (ii) all of the Lender’s security interests, to all of
Bank’s security interests in the Company’s property. 
  
 AGREEMENT 
  
 1.    In exchange for the agreements of the Lender set forth below, Bank hereby consents for all purposes under the
Loan Documents to the sale and purchase of the Notes and the Warrants by the Lender from the Company, and all of the other transactions set forth in or contemplated by the Purchase Agreement. 
  

2.    The Lender subordinates to Bank any security interest or lien that it has in all of the property and assets of the Company. Despite the
actual attachment or perfection dates of the Lender’s security interest and Bank’s security interest, Bank’s security interest in all of the assets and property of the Company is prior to the Lender’s security interest.

  
 3.    All Subordinated Debt payments are hereby subordinated
to all of the Company’s obligations to Bank existing now or hereafter created, together with collection costs of such obligations (including attorneys’ fees), including, interest accruing after any bankruptcy, reorganization or similar
proceeding and all obligations owing to Bank (the “Senior Debt”). 
  
 4.    The Lender
will not: 
  
 a)  demand or receive from the Company (and the Company will not pay) any
part of the Subordinated Debt, by payment, prepayment, or otherwise, 
  
 b)  exercise any
remedy against any assets of the Company, or 
  
 c)  accelerate the Subordinated Debt, or
begin or participate in any action against the Company, until all the Senior Debt is paid; 
  
 provided,
however, that the Lender may take any and all of the actions set forth in this Section 4 in the event that a default or an event of default occurs under the Senior Debt, or any of the documents entered into in connection therewith, and the Bank
has not within one hundred eighty (180) days of such default or event of default (i) accelerated the indebtedness of the Company to the Bank under the Senior Debt, and (ii) commenced judicial or non-judicial enforcement proceedings with respect to
such Senior Debt. No term or provision contained in this Section 4 shall impair, limit, or modify the obligations of the Lender to the Bank set forth in Section 5 below. 
  
 5.    The Lender must deliver to Bank in the form received (except for endorsement or assignment by the Lender) any payment, distribution, security or
proceeds it receives on the Subordinated Debt, other than according to this Agreement. 
  
 6.    These provisions shall remain in full force and effect, despite the Company’s insolvency, reorganization or any case or proceeding under any bankruptcy or insolvency law, and Bank’s claims against
the Company and the Company’s estate will be fully paid before any payment is made to the Lender. 
  
 7.    Until the Senior Debt is paid, the Lender irrevocably appoints Bank as its attorney-in-fact, with power of attorney with power of substitution, in the Lender’s name or in Bank’s name, for
Bank’s use and benefit without notice to the Lender, to do the following in any bankruptcy, insolvency or similar proceeding involving the Company: 
  
 (i)  File any claims for the Subordinated Debt for the Lender if the Lender does not do so at least 30 days before the time to file claims
expires, and 
  
 (ii)  Accept or reject any plan of reorganization or arrangement for the
Lender and vote the Lender’s claims in respect of the Subordinated Debt in any way it chooses. 
  
 8.    Lender will immediately put a legend on the Subordinated Debt instruments that the instruments are subject to this Agreement. No amendment of the Subordinated Debt documents will modify this Agreement in any
way that terminates or impairs the subordination of the Subordinated Debt or the subordination of the security interest or lien that the Lender has
 

 
 2 

 
in the Company’s property. For example, instruments cannot be amended to (i) increase the interest rate of the Subordinated Debt or (ii) accelerate payment of principal or interest or any
other portion of the Subordinated Debt. 
  
 9.    This Agreement is effective while the Company
owes any amounts to Bank. If after full payment of the Senior Debt, Bank must disgorge any payments made on the Senior Debt, this Agreement and the relative rights and priorities provided in it, will be reinstated as to all disgorged payments as
though the payments had not been made, and the Lender will immediately pay Bank all payments received under the Subordinated Debt to the extent the payments would have been prohibited under this Agreement. At any time without notice to the Lender,
Bank may take actions it considers appropriate on the Senior Debt such as terminating advances, increasing the principal, extending the time of payment, increasing interest rates, renewing, compromising or otherwise amending any documents affecting
the Senior Debt and any collateral securing the Senior Debt, and enforcing or failing to enforce any rights against the Company or any other person. No action or inaction will impair or otherwise affect Bank’s rights under this Agreement. The
Lender waives any benefits of California Civil Code Sections 2809, 2810, 2819, 2845, 2847, 2848, 2849, 2850, 2899 and 3433. 
  
 10.    This Agreement shall bind any successors or assignees of the Lender and shall benefit any successors or assigns of Bank. This Agreement is solely for the benefit of Lender and Bank and not for the benefit
of Company or any other party. The Lender further agrees that if the Company is in the process of refinancing a portion of the Senior Debt with a new lender, and if Bank makes a request of the Lender, the Lender shall agree to enter into a new
subordination agreement with the new lender on substantially the terms and conditions of this Agreement. 
  
 11.    This Agreement may be executed in two or more counterparts, each of which is an original and all of which together constitute one instrument. 
  
 12.    California law governs this agreement without giving effect to conflicts of laws principles. The Lender and Bank submit to the exclusive
jurisdiction of the courts in Santa Clara County, California. THE LENDER AND BANK EACH WAIVE THEIR RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION FROM THIS AGREEMENT. 
  
 13.    This Agreement represents the entire agreement about this subject matter, and supersedes prior negotiations or agreements. The Lender is not
relying on any representations by Bank or the Company in entering into this Agreement. The Lender will keep itself informed of the Company’s financial and other conditions. This Agreement may be amended only by written instrument signed by the
Lender and Bank. 
  
 14.    If there is an action to enforce the rights of a party under this
Agreement, the party prevailing will be entitled, in addition to other relief, all reasonable costs and expenses, including reasonable attorneys’ fees, incurred in the action. 

 
 3 

  
 In Witness Whereof, this Subordination Agreement and Consent has been duly
executed and delivered by the duly authorized officer of each party hereto as of the date first above written. 
  
 
	 BANK:
 	 	 SILICON VALLEY BANK
 
	 
	  	 	  	 	 By:
 	 	 /S/    LEONARD PEREZ        

	  	 	  	 	  	 	 

	  	 	  	 	  	 	 Name:
 	 	 Leonard Perez
 
	  	 	  	 	  	 	  	 	 

	  	 	  	 	  	 	 Its:
 	 	 Vice President
 
	  	 	  	 	  	 	  	 	 

	 
	 LENDER:
 	 	 ASHUTOSH ROY
 
	 
	  	 	  	 	 By:
 	 	 /S/    ASHUTOSH ROY        

	  	 	  	 	  	 	 

	  	 	  	 	  	 	 Name:
 	 	  
	  	 	  	 	  	 	  	 	 

	  	 	  	 	  	 	 Its:
 	 	  
	  	 	  	 	  	 	  	 	 

	 
	 The Company approves the terms of this Agreement:
 
	 
	  	 	 eGAIN COMMUNICATIONS
 CORPORATION
 
	 
	  	 	  	 	 By:
 	 	 /S/    ERIC SMIT        
 
	  	 	  	 	  	 	 

	  	 	  	 	  	 	 Name:
 	 	 Eric Smit
 
	  	 	  	 	  	 	  	 	 

	  	 	  	 	  	 	 Its:
 	 	 Chief Financial Officer
 
	  	 	  	 	  	 	  	 	 

 

 
 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]