Document:

THIRD LOAN MODIFICATION AGREEMENT

 Exhibit 10.2 
  
 THIRD LOAN MODIFICATION AGREEMENT 
  
 This Third Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of February 4,
2005, by and between SILICON VALLEY BANK, a California-chartered bank, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at One Newton Executive Park, Suite 200,
2221 Washington Street, Newton, Massachusetts 02462 (“Bank”) and BOTTOMLINE TECHNOLOGIES (de), Inc., a Delaware corporation with its chief executive office located at 325 Corporate Drive, Portsmouth, New Hampshire
03801(“Borrower”). 
  

	1.	DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant
to a loan arrangement dated as of December 28, 2001, evidences by, among other documents, a certain Loan and Security Agreement dated as of December 28, 2001, between Borrower and Bank, as amended by a certain First Loan Modification Agreement dated
as of December 31, 2002, between Borrower and Bank, and as further amended by a certain Second Loan Modification Agreement dated January 19, 2004, between Borrower and Bank (as amended, the “Loan Agreement”). The Loan Agreement established
a working capital line of credit in favor of Borrower in the maximum principal amount of Five Million Dollars ($5,000,000.00) (the “Committed Revolving Line”). Capitalized terms used but not otherwise defined herein shall have the same
meaning as in the Loan Agreement. 

  
 Hereinafter, all indebtedness
and obligations owing by Borrower to Bank shall be referred to as the “Obligations”. 
  

	2.	DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral security granted
to Bank, the “Security Documents”). 

  
 Hereinafter, the
Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
  

	3.	DESCRIPTION OF CHANGE IN TERMS.  

  

	 	A.	Modifications to Loan Agreement. 

  

	 	1.	The Loan Agreement shall be amended by deleting the following definition appearing in Section 13.1 thereof: 

  
 ““Revolving Maturity Date” means December 26,
2004.” 
  
 and inserting in lieu thereof the following:

  
 ““Revolving Maturity Date” means March
26, 2005.” 
  

	4.	FEES. Borrower shall pay to Bank a modification fee equal to Five Thousand Dollars and 00/100 ($5,000.00), which fee shall be due on the date hereof and shall be deemed fully
earned as of date hereof The Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 

  

	5.	RATIFICATION OF NEGATIVE PLEDGE AGREEMENT. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Negative
Pledge/Intellectual Property Security Agreement dated as of December 28, 2001, between Borrower and Bank, and acknowledges, confirms and agrees that said Negative Pledge Agreement shall remain in full force and effect. 

  

	6.	RATIFICATION OF PERFECTION CERTIFICATE. Borrower acknowledges, confirms and agrees that the disclosures and information about Borrower provided to Bank in the Perfection
Certificate dated January 9, 2004, is accurate in all material respects, as of the date thereof. 

  

	7.	CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 

  

	8.	RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to the Bank, and
confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

  

	9.	NO DEFENSES OF BORROWER. Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under the Obligations. 

 

	10.	CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and
agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to
modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of
the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification
Agreement. 

  

	11.	COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank. 

  
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 This Loan Modification Agreement is executed as a sealed instrument under the laws of the Commonwealth of
Massachusetts as of the date first written above. 
  

									
	BORROWER:	 	 	 	BANK:
			
	BOTTOMLINE TECHNOLOGIES (de), Inc.	 	 	 	SILICON VALLEY BANK
					
	By:	 	/s/    ROBERT EBERLE        	 	 	 	By:	 	/s/    IRINA CASE        
	 Name:
	 	Robert Eberle	 	 	 	 Name:
	 	Irina Case
	 Title:
	 	President	 	 	 	 Title:
	 	SVPCONFIRMATION OF COMMITTED BUSINESS OVERDRAFT

 Exhibit 10.3 
  

 THIS IS AN IMPORTANT DOCUMENT, WHICH SETS OUT THE TERMS AND CONDITIONS OF YOUR
COMMITTED OVERDRAFT FACILITY. WE RECOMMEND THAT YOU TAKE INDEPENDENT LEGAL ADVICE IF YOU HAVE ANY DOUBTS REGARDING THE TERMS AND CONDITIONS OF THE FACILITY. 

  
 [The Royal Bank of Scotland Logo Appears Here] 
  
 Confirmation of Committed Business Overdraft 
 Facility 
  
 Private & Confidential 
  

			
	 Bottomline Technologies Europe Limited
 Company
Number 1911956
 115 Chatham Street
 Reading
 RG1 7JX
	 	 Thames Valley Corporate
 Address:            Abbey Gardens
                             4 Abbey Street
                             Reading
                             RG1 3BA
 Telephone:        01189 522116

  
 Facility Account: 67486932 at
Reading Market Place branch (sorting code 60 17 21) 
 Overdraft Limit: £2,000,000 
 Agreed Interest Rate: 2.00% per annum over the Bank’s Base Rate 
 Bank’s Base Rate: currently 4.75%
per annum (but may vary from time to time) 
 Unauthorized Overdraft Rate: currently 4.00% per annum over the Bank’s Base Rate (but may vary from
time to time subject to one month’s notice) 
 Arrangement Fee: £10,000 
 Expiry Date: 31 December 2005 
  
 Principal Terms 
  

	1.	We offer you a committed overdraft facility (the Facility) subject to the terms of this Confirmation and the Committed Overdraft General Terms (COGT) attached.

  

	2.	Provided that none of the Events of Default detailed in Clause 3 occur, the Facility will be available until the Expiry Date. 

  

	3.	If any of the following events (Events of Default) occurs, we may, by giving written notice, demand immediate repayment of the outstanding borrowing on the Facility Account,
require that the amounts from time to time owing under the Facility become repayable upon demand or cancel the Facility and exercise our rights under any security: 

	-	

  

	 	(a)	the Overdraft Limit is exceeded; 

	 	(b)	the commencement of any winding-up, bankruptcy or administration proceedings against you or the appointment of a receiver or administrative receiver in respect of any of your
property or you make arrangements with creditors; 

	 	(c)	if you are a sole trader, you die; 

	 	(d)	your business ceases to trade or, if you are a partnership, the partnership is dissolved; 

	 	(e)	any procedure is used against you to attach or take possession of any property for payment of a debt; 

	 	(f)	you are in breach of any financial obligation to us or any other creditor; 

	 	(g)	you fail to provide any information regarding your financial condition or business operations detailed in Clause 5; 

	 	(h)	the financial covenants detailed in Clause 6 are breached; or 

	 	(i)	any information given to us is inaccurate or there is a material non-disclosure by you to us. 

  

	4.	Interest will be charged:- 

  

	 	(a)	up to the Overdraft Limit, at the Agreed Interest Rate; and 

	 	(b)	in excess of the Overdraft Limit (or after we have demanded immediate repayment of the outstanding borrowing on the Facility Account in terms of Clause 3 of this Confirmation or
Clause C of the COGT), at the Unauthorised Overdraft Rate. 

  

	5.	To enable us to monitor the Facility you will provide:- 

  

	 	(a)	as soon as they become available but in any event within 180 days after the end of your financial year and in a format acceptable to us, copies of your business accounts for that
year; 

	 	(b)	as soon as they become available but in any event no later than 31 days after the end of the accounting period to which they relate and in a format acceptable to us, quarterly
management accounts incorporating balance sheet and profit and loss account; and 

	 	(c)	promptly, such further information regarding your financial condition and business operations as we may reasonably request (including audited business/management accounts where not
already supplied). 

	6.	The financial statements and management accounts will require to demonstrate that on the last day of the period covered by the relevant statements/accounts, Overdraft Utilisation
was not more than the aggregate of Written Down Value Of Debtors plus Written Down Value of 115 Chatham Street, Reading. 

  

	7.	The Arrangement Fee will be debited by us to the Facility Account on the 31st January 2005. 

  

	8.	The Facility will be secured as set out in the attached Schedule. We shall not be obliged to provide the Facility until any such security is completed to our satisfaction. All
security will require to be granted in our standard form. 

  

	9.	We are not obliged to provide the Facility until you have accepted the Facility on the terms set out in this Confirmation and COGT by returning the duplicate of this Confirmation to
us duly signed. 

  
 For the Royal Bank of Scotland plc Acting As
Agent For National Westminster Bank plc. 
  
 [signature illegible] 
  
 Date 
  

Having decided that the Facility is appropriate and in my/our interests, it is hereby accepted on the terms set out in this Confirmation and the COGT overleaf.

  

															
								
	Signature	 	 /s/    Peter Fortune        

	 	 Date
	 	 07/02/05

	 	Signature	 	  

	 	 Date
	 	  

								
	Signature	 	  

	 	Date	 	  

	 	Signature	 	  

	 	Date	 	  

 Committed Overdraft General Terms (COGT) 
 These COGT explain your and our rights and responsibilities in respect of the Facility and should be read in conjunction with the Confirmation attached specific to the Facility. Definitions and meanings used in the
Confirmation attached also apply in these COGT (and vice versa) unless the context requires otherwise. 
  
 A. Overdraft Limit 
 The Facility enables you to overdraw the Facility Account up to the Overdraft Limit. The
Overdraft Limit should not be exceeded without our prior consent and we may refuse to allow any payment or withdrawal which could have that effect. If we allow a payment or withdrawal or a series of payments or withdrawals which results in the
Overdraft Limit being exceeded, it will not mean that the Overdraft Limit has changed or that we are bound to allow any other payment or withdrawal which could result in the Overdraft Limit being exceeded at other times. 
 We may debit the Facility Account under Clauses D and E of these COGT even if it results in the Overdraft Limit being exceeded. 
  
 B. Uncleared credits 
 We may disregard any uncleared credits when calculating the amount outstanding under the Facility (and any interest payable). If however we pay a cheque or cheques (or
allow any other payment or withdrawal or a series of payments or withdrawals) against uncleared credits at any time we are not bound to do so at other times. 
  
 C. Renewal of Facility 
 At any time during the 30 days prior to
the Expiry Date you may request (or we may offer) to renew the Facility for a further period of up to 365 days, subject to us undertaking a full credit assessment and further documentation. If the Facility is not renewed before the Expiry Date any
borrowing outstanding under the Facility will become repayable on demand and the Facility may be unconditionally cancelled by us at any time. 
  
 D. Interest 
 Interest will be calculated both before and after
demand, decree or judgement on a daily basis on the cleared debit balance and will be debited by us to the Facility Account quarterly on the second last business day of March, June, September and December. 
  
 E. Costs/Charges 
 You must pay any costs incurred by us in connection with the Facility whether as aresult of you breaking the terms of the Facility or not. These costs will include (but not be limited to) costs of taking and
discharging any security; taking steps, including court action, to obtain payment; enforcing and/or preserving the Bank’s rights under any security held for the Facility; tracing you if you change address without notice and communicating with
you if you break the terms of the Facility or an Event of Default occurs. We may debit such costs to the Facility Account. 
  
 F. Change in law, regulation or directive 
 If as a result of a
change of any applicable law, regulation or directive, the cost to us of providing the Facility (including contingent) any of your credit balances (whether subject to notice or not) on any of your accounts with us in your name. We do not have to
give you any prior notice to do this. 
  
 G. Set off 
 We shall be entitled to set-off against any of your liabilities under this agreement (whether present, future, actual or contingent) any of your credit balances (whether
subject to notice or not) on any of your accounts with us in your name. We do not have to give you any prior notice to do this. 
  
 H. Joint and several liability 
 If you are more than one person
then the word “you” shall refer to such persons both together and separately and the obligations of those persons under the Facility shall be joint and several, that is to say, each of you can be held liable both jointly and individually
for all of the obligations under the facility. 
  
 I. Miscellaneous

 These terms will not be affected by the Facility Account being allocated another account number by us or being transferred to another of our branches,
offices or departments. In the event of a conflict between (i) the terms of the Confirmation attached and these COGT and (ii) any other terms which apply to the Facility Account then the terms of the Confirmation attached and these COGT will
prevail. 
  
 J. Financial Definitions 
 The Following definitions relate to Clause 6 
  
 “Overdraft Utilisation” means the debtor balance on the Facility Account as at the Close of business on the final business day of the period covered by
the financial statements or management accounts. 
  
 “Written Down Value
Of Debtors” means 30% of the total value of your trade debtors aged less than 90 days excluding, as determined by the Bank (a) inter company debtors and (b) debtors in dispute or known to be doubtful. 
  
 “Written Down Value Of 115 Chatham Street, Reading” means 70% of the value
of the property at 115 Chatham Street, Reading, such value evidenced by the most recent Bank addressed professional valuation on an open market basis held by the Bank at any relevant time. 

 [LOGO APPEARS HERE] 
  
 This is the Schedule referred to in the Bank’s Confirmation of Committed Business 
 Overdraft Facility to the Customer dated: 6 January 2005 
  
 Customer: Bottomline Technologies Europe Limited 
  
  
  
 The overdraft facility made available by the Bank to the
Customer in terms of the Confirmation of Committed Business Overdraft Facility shall be secured by the following :- 
  

	(1)	the existing available security held by the Bank as follows :- 

  

	 	(a)	Debentures by and an Inter Company Guarantee between you, Bottomline Technologies Limited company number 03693514 and Bottomline Transactional Services Limited;

  

	 	(b)	First Legal Charges over the following properties and their associated assets by you :- 

	 	-	115 Chatham Street, Reading; 

	 	-	97 to 113 (odd numbers) and 117 Chatham Street, Reading; 

	 	-	land at the site that was formerly 93 and 95 Chatham Street, Reading; and 

  

	 	(c)	a Letter of Comfort by Bottomline Technologies Inc; and 

  

	(2)	any further security which the Bank may not or in future hold.

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