Document:

Conversion Agreement and Amendment to Subordinated Secured Promissory Notes

 Exhibit 10.1 
 CONVERSION AGREEMENT AND AMENDMENT TO SUBORDINATED SECURED PROMISSORY NOTES 
 This CONVERSION
AGREEMENT AND AMENDMENT TO SUBORDINATED SECURED PROMISSORY NOTES (this “Agreement”), dated as of September 24, 2008, between eGain Communications Corporation, a Delaware corporation (the
“Company”), and each of the entitles and individuals listed on the attached Schedule A (each a “Lender” and collectively, the
“Lenders”). 
 WITNESSETH: 
 WHEREAS, the Lenders have previously loaned to the Company an aggregate of $8,500,000 pursuant to that certain Note and Warrant Purchase Agreement dated
as of December 23, 2002, that certain Note and Warrant Purchase Agreement dated as of March 31, 2004 and that certain Note and Warrant Purchase Agreement and Amendment to Subordinated Secured Promissory Notes (collectively, the
“Prior Loan Agreements”) as evidenced by subordinated secured promissory notes in the aggregate face amounts of $3,524,000, $3,524,000, $4,405,854.20 and $2,441,600 dated as of December 31,
2002, October 31, 2003, March 31, 2004 and June 29, 2007, respectively (collectively, the “Original Notes”); and 
 WHEREAS, on June 29, 2007, the Original Notes dated as of December 31, 2002 and October 31, 2003 were amended and restated as a single
restated subordinated secured promissory note dated as of June 29, 2007 in the aggregate face amount of $7,765,486.40 with a maturity date of March 31, 2009 (together with the Original Notes, the “Prior
Notes”); and 
 WHEREAS, the Company and the Lenders now desire to (i) convert a portion of the outstanding
indebtedness under the Prior Notes equal to $6,535,977 into shares of the Company’s common stock at a price per share equal to $0.95 (the “Note Conversion”), and (ii) extend the maturity date of the
remaining outstanding indebtedness accrued under the Prior Notes to March 31, 2012, as well as the period for which interest shall accrue on the Prior Notes (the “Note Extension”); and 
 WHEREAS, the Company intends that all indebtedness remaining outstanding on each of the Prior Notes from the Company remain fully subordinated to the
indebtedness of the Company to Bridge Bank, N.A. and on a parity with the outstanding indebtedness under all Prior Notes; and 
 WHEREAS, as
consideration for the Note Extension, each of the Lenders shall receive warrants to purchase shares of the Company’s common stock as set forth herein: 
 NOW, THEREFORE, in consideration of the foregoing promises and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, parties hereto hereby agree as follows: 

 ARTICLE I 
 DEFINITIONS 
 Capitalized terms not otherwise defined herein shall have the meanings set forth
below when used in this Agreement and in the Exhibits hereto: 
 “Collateral” means the property
described on Annex A. 
 “Contingent Obligations” means, for any Person, any direct or indirect
liability, contingent or not, of that Person for (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse
by that Person, or for which that Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest rate, currency or commodity swap
agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not
include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably
anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. 
 “Copyrights” means all copyright rights, applications or registrations and like protections in each work or authorship or
derivative work, whether published or not (whether or not it is a trade secret) now or later existing, created, acquired or held. 
 “GAAP” means generally accepted accounting principles. 
 “Indebtedness” means (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit,
(b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent Obligations. 
 “Intellectual Property” means: 
 (a) Copyrights,
Trademarks, and Patents including amendments, renewals, extensions, and all licenses or other rights to use and all license fees and royalties from the use; 
 (b) Any trade secrets and any intellectual property rights in computer software and computer software products now or later existing,
created, acquired or held; 
 (c) All design rights which may be available to the Company now or later created, acquired or
held; 
 (d) Any claims for damages (past, present or future) for infringement of any of the rights above, with the right, but
not the obligation, to sue and collect damages for use or infringement of the intellectual property rights above; 
 All proceeds and
products of the foregoing, including all insurance, indemnity or warranty payments. 
 “Intercreditor
Agreement” means that certain Amended and Restated Intercreditor Agreement, dated as of even date herewith, between the Lenders and the Company, substantially in the form of Annex D. 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 2 

 “Inventory” means all present and future inventory in which the
Company has any interest, including merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and
description now or later owned by or in the custody or possession, actual or constructive, of the Company, including inventory temporarily out of its custody or possession or in transit and including returns on any accounts or other proceeds
(including insurance proceeds) from the sale or disposition of any of the foregoing and any documents of title. 
 “Investment” means any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance or capital contribution to any Person; provided, however, that
in no event shall the payments by the Company to its Subsidiaries pursuant to transfer pricing arrangements with such Subsidiaries be considered Investments. 
 “Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 
 “Loan Documents” means, collectively, this Agreement, the Restated Notes and the Warrants. 
 “Material Adverse Change” means (i) a material adverse change in the business operations, or condition
(financial or otherwise) of the Company; (ii) a material impairment of the prospect of repayment of any portion of the Obligations; or (iii) a material impairment of the priority of the Lenders’ security interests in the Collateral.

 “Obligations” means the Company’s obligation to repay amounts to the Lenders as evidenced by
the Note. 
 “Patents” means, renewals, reissues, extensions and continuations-in-part of the same.

 “Permitted Investments” means (a) Investments shown on Exhibit 3.7 and existing
on the Effective Date; (b) Investments made by the Company or any Subsidiary, provided, however, that the Company may make Investments in its Subsidiaries, provided, however, that (i) the aggregate amount of such Investments shall not
exceed $300,000 in any given quarter and (ii) no Event of Default (as defined in the Prior Loan Agreement pursuant to which such Prior Note was issued) has occurred which is continuing or would exist immediately after giving effect to any such
Investment; (c) marketable direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 2 years from its acquisition; (d) commercial paper maturing no more than 1 year after its
creation and currently having a rating of at least A-1 or P-1 from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc.; and (e) Bank certificates of deposit issued maturing no more than 2 years after
issue. 
 “Permitted Liens” means (a) Liens existing at the Effective Date and set forth in
Exhibit 3.2 hereto or arising under this Agreement or the Note, (b) purchase money Liens (i) on equipment acquired or held by the Company incurred for financing the acquisition of the equipment, or (ii) existing on
equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the equipment; (c) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in
(a) and (b) above; provided that any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase. 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 3 

 “Person” means any individual, sole proprietorship, partnership,
limited liability company, joint venture, company association, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Restated Notes” means the restated subordinated secured promissory notes of the Company issued to the Lenders in
exchange for the cancellation of the Prior Notes in substantially the form attached to this Agreement as Annex B. 
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal law then in force. 
 “Bridge Bank Loan Agreement” means that certain Loan and Security Agreement, dated as of June 24, 2008, by and between the Company and Bridge Bank, N.A., as amended,
modified, and supplemented from time to time. 
 “Subsidiary” means any Person in which the Company,
directly or indirectly through Subsidiaries or otherwise, beneficially owns at least 50% of either the equity interest in, or the voting control of, such Person. 
 “Trademarks” means trademark and servicemark rights, registered or not, applications to register and registrations and like protections, and the entire goodwill of the business of
the Company connected with the trademarks. 
 “Warrants” means the Warrant to purchase Common Stock of
the Company granted to the Lenders under this Agreement in substantially the form attached to this Agreement as Annex C. 
 Additional defined terms are found in the body of the following text. 
 The masculine form of words includes the feminine and the
neuter and vice versa, and, unless the context otherwise requires, the singular form of words includes the plural and vice versa. The words “herein,” “hereof,” “hereunder,” and
other words of similar import when used in this Agreement refer to this Agreement as a whole, and not to any particular section or subsection. 
 ARTICLE II 
 PURCHASE AND SALE TERMS 
 Section 2.1 Conversion. Subject to the terms of this Agreement, on the date hereof (the “Effective
Date”), each of the Lenders shall surrender the original Prior Notes held by them for conversion of a portion of the outstanding indebtedness under the Prior Notes into shares of the Company’s common stock in accordance with
the schedule set forth on Exhibit 2.1 at a conversion price per share equal to $0.95 and the Company shall issue to each Lender a new subordinated promissory note reflecting the remaining outstanding indebtedness of the Company under
each of the Prior Notes as set forth in Section 2.2 hereof. 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 4 

 Section 2.2 Extension of Maturity Date for Prior Notes. The terms of each of the
Prior Notes, with respect to amount of remaining outstanding indebtedness, are hereby amended such that (i) the maturity date of the set forth therein is hereby extended until March 31, 2012 and (ii) interest accruing thereunder shall
continue to accrue through such date. Other than as set forth in Section 2.1 and this Section 2.2, this Agreement effects no additional changes to the Prior Notes. Concurrent with the execution of this Agreement, each Lender shall tender
the original Prior Notes held by such Lender to the Company for cancellation and the Company shall issue to each Lender a Restated Note in substantially the form attached to this Agreement as Annex B. 
 Section 2.3 Warrant. Subject to the terms of this Agreement, at the Effective Time, as further consideration for the Note Extension,
the Company shall grant to each Lender, and each Lender shall receive from the Company, a Warrant in substantially the form attached to this Agreement as Annex C, for the number of shares in accordance with the schedule set forth on
Exhibit 2.3. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Except as otherwise set forth in the Exhibits
furnished pursuant to this Agreement, the Company represents and warrants to the Lenders at the Effective Time that: 
 Section 3.1
Due Organization; Authorization and Other Matters. The Company and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing in, any state in
which the conduct of its business or its ownership of property requires that it be qualified. The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with the Company’s formation documents,
nor constitute an event of default under any material agreement by which the Company is bound. The Company is not in default under any agreement to which or by which it is bound in which the default could cause a Material Adverse Change. The Loan
Documents have been validly executed by the Company, and each such document is the Company’s legal, valid and binding obligation, enforceable against the Company in accordance with its terms. The Company represents and warrants that
(i) the Loan Documents and the transactions contemplated therein have been approved by a disinterested majority of the Board of Directors, after full disclosure of all relevant facts regarding such transactions, including knowledge of the
Lenders’ relationship as an officer, director and stockholder of the Company; and (ii) the principal terms contained in the Loan Documents were negotiated on behalf of the Company with the assistance of one or more disinterested, outside
directors whose collective financial sophistication and experience negotiating and conducting financial transactions equals or exceeds the financial sophistication and experience of the Lenders. 
 Section 3.2 Collateral. The Company has good title to the Collateral, free of Liens except Permitted Liens. All Inventory is in all
material respects of good and marketable quality, free from material defects. The Company is the sole owner of the Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary course of business. Each Patent is
valid and enforceable and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and to the Company’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights
of any third party. 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 5 

 Section 3.3 Litigation. Except as shown in Exhibit 3.3, there are no
actions or proceedings pending or, to the Company’s knowledge, threatened by or against the Company or any Subsidiary in which an adverse decision could cause a Material Adverse Change. 
 Section 3.4 No Material Adverse Change in Financial Statements. All consolidated financial statements for the Company, and any
Subsidiary, made available to the Lenders fairly present in all material respects the Company’s consolidated financial condition and the Company’s consolidated results of operations. There has not been any material deterioration in the
Company’s consolidated financial condition since the date of the most recent financial statements made available to the Lenders. 
 Section 3.5 Solvency. The fair salable value of the Company’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; the Company is not left with unreasonably small capital
after the transactions contemplated by this Agreement; and the Company is able to pay its debts (including trade debts) as they mature. 
 Section 3.6 Regulatory Compliance. The Company is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act. The Company is not
engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). The Company has complied with the Federal Fair Labor Standards Act. The Company has not
violated any laws, ordinances or rules, the violation of which could cause a Material Adverse Change. None of Company’s or any Subsidiary’s properties or assets has been used by the Company or any Subsidiary or, to the best of the
Company’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. The Company and each Subsidiary has timely filed all required tax returns and paid, or made
adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. The Company and each Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings
with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted. 
 Section
3.7 Subsidiaries. The Company does not own any stock, partnership interest or other equity securities except for Permitted Investments. 
 Section 3.8 Full Disclosure. No representation, warranty or other statement of the Company in any certificate or written statement given to the Lenders contains any untrue statement of a material
fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE LENDERS 
 Each Lender represents and warrants to the Company that: 
 Section 4.1 The Lender is an “accredited investor” within the meaning of Rule 501 under the Securities Act and is a resident of the State of California. 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 6 

 Section 4.2 The Lender has sufficient knowledge and experience in investing in companies similar
to the Company in terms of the Company’s stage of development so as to be able to evaluate the risks and merits of its investment in the Company and is able financially to bear the risks thereof, including the complete loss of its investment.

 Section 4.3 The Lender has had an opportunity to discuss the Company’s business, management and financial affairs with the
Company’s management. 
 Section 4.4 The Lender has full corporate or other power and authority to enter into and to perform this
Agreement and all documents and agreements contemplated by this Agreement, and each such document has been validly executed by the Lender and is the Lender’s legal, valid and binding obligation, enforceable against the Lender in accordance with
its terms. 
 ARTICLE V 
 AFFIRMATIVE COVENANTS OF THE COMPANY 
 The Company will do all of the following: 
 Section 5.1 Further Assurances. The Company will execute any further instruments and take further action as the Lenders reasonably
request to perfect or continue the Lenders’ security interest in the Collateral or to effect the purposes of this Agreement. Without limiting the foregoing, the Company agrees to cooperate in all respects, as and if reasonably requested by
Lender, to facilitate filing by the Lenders of UCC-1 financing statements in Delaware and California, and filing of customary perfection documentation in the United Stated Patent and Trademark Office (“USPTO filings”), and the Company
agrees to pay any and all ordinary course filing fees associated with the USPTO filings. 
 ARTICLE VI 
 SECURITY INTEREST 
 Section
6.1 Continuing Grant of Security Interest. Nothing herein shall be deemed to effect the security interest securing the Company’s obligations under the Prior Notes as amended hereby. 
 ARTICLE VII 
 MISCELLANEOUS

 Section 7.1 Remedies Cumulative. Except as herein provided, the remedies provided herein shall be cumulative and
shall not preclude assertion by any party hereto of any other rights or the seeking of any other remedies against the other party hereto. 
 Section 7.2 Brokerage. Each party hereto will indemnify and hold harmless the others against and in respect of any claim for brokerage or other commission relative to this Agreement or to the transaction contemplated
hereby, based in any way on agreements, arrangements or understandings made or claimed to have been made by that party with any third party. 
 Section 7.3 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, those provisions shall be ineffective to the extent of that prohibition or invalidity, without invalidating the remainder of those provision or the remaining provisions of this Agreement. 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 7 

 Section 7.4 Parties in Interest. All covenants and agreements contained in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective legal representatives, successors and assigns of the parties hereto whether so expressed or not. 
 Section 7.5 Notices. Any notice, demand, request or other communication which the Lenders 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, 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 
 345 East
Middlefield Road 
 Mountain View, CA 94043 
 Attn:    Eric Smit 
             Chief Financial Officer 
 Phone:(650) 230-7500 

Fax:     (650) 230-7600 
 If to the Lenders: 
 Ashutosh Roy 
 781 Berry Avenue 
 Los Altos, CA 94024 
 Phone:(650) 230-7500 
 Fax:
(650) 230-7600 
 Oak Hill Capital Partners, L.P. 
 Oak Hill Capital Management Partners, L.P. 
 FW Investors V, L.P. 
 201 Main Street; Suite 3100 
 Fort Worth, TX
76102 
 Attn: Kevin G. Levy 
 Notwithstanding
anything to the contrary, all notices and demands for payment from the Lenders 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. 
 Section 7.6 No Waiver. No failure to exercise and no delay in exercising
any right, power or privilege granted under this Agreement shall operate as a waiver of that right, power or privilege. No single or partial exercise of any right, power or privilege granted under this Agreement shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. The rights and remedies provided in this Agreement are cumulative and are not exclusive of any rights or remedies provided by law. 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 8 

 Section 7.7 Amendments and Waivers. Except as herein provided, this Agreement may be
modified or amended only by a writing signed by the Company and Lenders holding a majority of the outstanding indebtedness due under the Restated Notes. 
 Section 7.8 Survival of Agreements, etc. All agreements, representations and warranties contained in this Agreement or made in writing by or on behalf of the Company or the Lenders in connection
with the transactions contemplated by this Agreement shall survive the execution and delivery of this Agreement, the Effective Time, and any investigation at any time made by or on behalf of the Lenders. Notwithstanding the preceding sentence,
however, all those representations (other than intentional misrepresentations) and warranties, but no such agreements, shall expire three years after the date of this Agreement. 
 Section 7.9 Construction. This Agreement shall be governed by and construed in accordance with the procedural and substantive laws
of the State of California without regard for its conflicts-of-laws rules. 
 Section 7.10 Entire Understanding. This
Agreement and the documents expressly referenced in this Agreement express the entire understanding of the parties and supersede all prior and contemporaneous agreements and undertakings of the parties with respect to the subject matter of this
Agreement and such documents. 
 Section 7.11 Assignment; No Third-Party Beneficiaries. 
 7.11.1 This Agreement and the rights hereunder shall not be assignable or transferable by the Lenders or the Company, except by
operation of law in connection with a merger, consolidation or sale of substantially all the assets of the Company, without the prior written consent of the other parties hereto, which consent shall not be unreasonably withheld. Subject to the
preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective, legal representatives, successors and assigns. 
 7.11.2 This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein expressed or
implied shall give or be construed to give to any Person, other than the parties hereto and those assigns, any legal or equitable rights hereunder. 
 Section 7.12 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one agreement. 

[Remainder of Page Intentionally Left Blank] 
  

 EGAIN COMMUNICATIONS CORPORATION 

CONVERSION AND AMENDMENT TO SUBORDINATED SECURED
PROMISSORY NOTES 
 9 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officer of each party hereto as of the date first above written. 
  

					
	COMPANY:
	
	eGAIN COMMUNICATIONS CORPORATION
		
	By:	 	/s/ Eric Smit          
		 	Name:	 	Eric Smit
		 	Its:	 	Chief Financial Officer

 LENDERS: 
  

			
		 	/s/ Ashutosh Roy          
	Ashutosh Roy

  

			
	OAK HILL CAPITAL PARTNERS, L.P.
		
	By:	 	OHCP GenPar, L.P.,
		 	its general partner
		
	By:	 	OHCP MGP, LLC,
		 	its general partner
		
	By:	 	/s/ Kevin G. Levy          
		 	Kevin G. Levy, Vice President

			
	OAK HILL CAPITAL MANAGEMENT PARTNERS, L.P.
		
	By:	 	OHCP GenPar, L.P.,
		 	its general partner
		
	By:	 	OHCP MGP, LLC,
		 	its general partner
		
	By:	 	/s/ Kevin G. Levy          
		 	Kevin G. Levy, Vice President
	
	FW INVESTORS V, L.P.
		
	By:	 	FW Management II, L.L.C.,
		 	its general partner
		
	By:	 	/s/ Kevin G. Levy          
		 	Kevin G. Levy, Vice President

 Schedule A 
 Lenders 
 Ashutosh Roy 
 Oak Hill Capital Partners, L.P. 
 Oak Hill Capital Management Partners, L.P. 
 FW Investors V, L.P.Form of Restated Subordinated Secured Promissory Note

 Exhibit 10.2 
 RESTATED SUBORDINATED SECURED PROMISSORY NOTE 
  

			
	$            	 	 Mountain View, California
 September 24, 2008

 FOR VALUE RECEIVED, the undersigned, eGain Communications Corporation, a Delaware corporation (the
“Company”), promises unconditionally to pay to the order of             , and his or its successors or assigns (the
“Lender”) during Lender’s regular business hours at such place as Lender may from time to time designate,             dollars
($            ) (the “Face Amount”). This Note amends and restates the subordinated secured promissory notes in the face amount of
$             dated              which were issued to the Lender pursuant to that certain Note and Warrant Purchase Agreement,
dated as of              (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. THIS NOTE IS SUBJECT TO A SUBORDINATION AGREEMENT WITH CERTAIN LENDERS OF THE COMPANY A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY UPON REQUEST.
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(b), 6(b) and 11 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 March 31, 2012 (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) $             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 additional interest 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 additional interest 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 $            . 
 7. Reserved. 
 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 

  

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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. 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. 
 11. 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. 
 12. 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 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 12. 
  

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 13. 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. 
 14. 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. 
 15. 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. 
 16. 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. 
 17. 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. 
  

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 18. Notice. Any notice, demand, request or other communication which Lender or the Company
may be required to give hereunder shall be made in accordance with Section 7.5 of the Conversion and Extension Agreement. 
 19.
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. 
 20. 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. 
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 IN WITNESS WHEREOF, the Company has duly executed this Restated 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 Officer

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