Document:

Secured Promissory Note issued by Digital Lightwave, Inc.

 Exhibit 10.1 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. 
  
 SECURED PROMISSORY NOTE 
  

			
	 $600,000.00
	  	May 26, 2005
	 	  	Clearwater, Florida

  
 For value received,
Digital Lightwave, Inc., a Delaware corporation (the “Company”), promises to pay to Optel Capital, LLC, a Delaware limited liability company (the “Holder”), or its registered assigns, the principal sum of Six
Hundred Thousand Dollars ($600,000.00). Interest shall accrue from the date of this Note on the unpaid principal amount at a rate equal to 10.0% per annum, compounded annually. The interest rate shall be computed on the basis of the actual number of
days elapsed and a year of 360 days. This Note is subject to the following terms and conditions. 
  
 1. Maturity. 
  
 (a) Principal and any accrued but unpaid interest under this Note shall be due and payable upon demand by the Holder at any time after May 31, 2005.

  
 (b) Notwithstanding the foregoing, the entire unpaid principal
sum of this Note, together with accrued and unpaid interest thereon, shall become immediately due and payable upon demand by the Holder at any time on or following the occurrence of any of the following events: 
  
 (i) the sale of all or substantially all of the Company’s assets, or
any merger or consolidation of the Company with or into another corporation; other than a merger or consolidation in which the holders of more than 50% of the shares of capital stock of the Company outstanding immediately prior to such transaction
continue to hold (either by the voting securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company, or such
surviving entity, outstanding immediately after such transaction; 
  
 (ii) the inability of the Company to pay its debts as they become due; 

 (iii) the dissolution, termination of existence, or appointment of a receiver, trustee or custodian, for
all or any material part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding by the Company under any reorganization, bankruptcy, arrangement, dissolution or liquidation law or statute of any
jurisdiction, now or in the future in effect; 
  
 (iv) the
execution by the Company of a general assignment for the benefit of creditors; 
  
 (v) the commencement of any proceeding against the Company under any reorganization, bankruptcy, arrangement, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect, which is not
cured by the dismissal thereof within ninety (90) days after the date commenced; or 
  
 (vi) the appointment of a receiver or trustee to take possession of the property or assets of the Company. 
  
 2. Payment; Prepayment. All payments shall be made in lawful money of the United States of America at such place as the Holder hereof may
from time to time designate in writing to the Company. Payment shall be credited first to the accrued interest then due and payable and the remainder applied to principal. Prepayment of this Note may be made at any time without penalty. 

 
 3. Transfer; Successors and Assigns. The terms and
conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. This Note may be transferred only upon surrender of the original Note for registration of transfer, duly endorsed,
or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon, a new note for the same principal amount and accrued interest will be issued to, and registered in the name of, the transferee. Interest
and principal are payable only to the registered holder of this Note. 
  
 4. Governing Law. This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Florida,
without giving effect to principles of conflicts of law. 
  
 5.
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after
being deposited in the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address or facsimile number as set forth below or as subsequently modified by written
notice. 
  
 6. Amendments and Waivers. Any term of
this Note may be amended only with the written consent of the Company and the Holder. Any amendment or waiver effected in accordance with this Section 6 shall be binding upon the Company, each Holder and each transferee of this Note.

  

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 7. Officers and Directors Not Liable. In no event shall any officer or director of the
Company be liable for any amounts due or payable pursuant to this Note. 
  
 8. Security Interest. This Note is secured by all of the assets of the Company in accordance with the Twenty Second Amended and Restated Security Agreement by and between the Company and the Holder dated as of September 16,
2004 (the “Security Agreement”). In case of an Event of Default (as defined in the Security Agreement), the Holder shall have the rights set forth in the Security Agreement. 
  
 9. Counterparts. This Note may be executed in any number of
counterparts, each of which will be deemed to be an original and all of which together will constitute a single agreement. 
  
 10. Action to Collect on Note. If action is instituted to collect on this Note, the Company promises to pay all costs and expenses,
including reasonable attorney’s fees, incurred in connection with such action. 
  
 11. Loss of Note. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Note or any Note exchanged for it, and indemnity satisfactory to the
Company (in case of loss, theft or destruction) or surrender and cancellation of such Note (in the case of mutilation), the Company will make and deliver in lieu of such Note a new Note of like tenor. 
  
 [Remainder of this page intentionally left blank.] 
  

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 This Note was entered into as of the date set forth above. 
  

			
	COMPANY:
	
	DIGITAL LIGHTWAVE, INC.
		
	By:	 	 /s/ ROBERT F. HUSSEY

	 	 	Robert F. Hussey
	 	 	Interim President and Chief Executive Officer

  

			
	AGREED TO AND ACCEPTED:
	
	OPTEL CAPITAL, LLC
		
	By:	 	 /s/ PAUL RAGAINI

	Name:	 	Paul Ragaini
	Title:	 	Chief Financial OfficerManagement Stock Option Plan

 EXHIBIT 10.1 
  
 eGAIN COMMUNICATIONS CORPORATION 
  
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 (Adopted by the Board of Directors on May 27, 2005) 

 Table of Contents 
  

					
	 	  	Page

	 SECTION 1. ESTABLISHMENT AND PURPOSE.
	  	1
		
	 SECTION 2. DEFINITIONS.
	  	1
	         (a)
	  	“Affiliate”	  	1
	 (b)
	  	“Award”	  	1
	 (c)
	  	“Board of Directors”	  	1
	 (d)
	  	“Change in Control”	  	1
	 (e)
	  	“Code”	  	2
	 (f)
	  	“Committee”	  	2
	 (g)
	  	“Company”	  	2
	 (h)
	  	“Exchange Act”	  	2
	 (i)
	  	“Exercise Price”	  	2
	 (j)
	  	“Fair Market Value”	  	2
	 (k)
	  	“Nonstatutory Option” or “NSO”	  	3
	 (l)
	  	“Officer”	  	3
	 (m)
	  	“Option”	  	3
	 (n)
	  	“Optionee”	  	3
	 (o)
	  	“Parent”	  	3
	 (p)
	  	“Participant”	  	3
	 (q)
	  	“Plan”	  	3
	 (r)
	  	“Service”	  	3
	 (s)
	  	“Share”	  	3
	 (t)
	  	“Stock”	  	3
	 (u)
	  	“Stock Option Agreement”	  	3
	 (v)
	  	“Subsidiary”	  	3
		
	 SECTION 3. ADMINISTRATION
	  	3
	 (a)
	  	Committee Composition	  	3
	 (b)
	  	Committee Procedures	  	3
	 (c)
	  	Committee Responsibilities	  	4
		
	 SECTION 4. ELIGIBILITY
	  	5
	 (a)
	  	General Rule	  	5
		
	 SECTION 5. STOCK SUBJECT TO PLAN
	  	5
	 (a)
	  	Basic Limitation	  	5
	 (b)
	  	Award Limitation	  	5
	 (c)
	  	Additional Shares	  	5
		
	 SECTION 6. TERMS AND CONDITIONS OF OPTIONS
	  	5
	 (a)
	  	Stock Option Agreement	  	5
	 (b)
	  	Number of Shares	  	5
	 (c)
	  	Exercise Price	  	5
	 (d)
	  	Withholding Taxes	  	5
	 (e)
	  	Exercisability and Term	  	6
	 (f)
	  	Exercise of Options Upon Termination of Service	  	6
	 (g)
	  	Effect of Change in Control	  	6
	 (h)
	  	Leaves of Absence	  	6

  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
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	         (i)
	  	No Rights as a Stockholder	  	6
	 (j)
	  	Modification, Extension and Renewal of Options	  	6
	 (k)
	  	Restrictions on Transfer of Shares	  	6
	 (l)
	  	Buyout Provisions	  	6
		
	 SECTION 7. PAYMENT FOR SHARES
	  	7
	 (a)
	  	General Rule	  	7
	 (b)
	  	Surrender of Stock	  	7
	 (c)
	  	Services Rendered	  	7
	 (d)
	  	Cashless Exercise	  	7
	 (e)
	  	Exercise/Pledge	  	7
	 (f)
	  	Promissory Note	  	7
	 (g)
	  	Other Forms of Payment	  	7
	 (h)
	  	Limitations under Applicable Law	  	7
		
	 SECTION 8. ADJUSTMENT OF SHARES
	  	7
	 (a)
	  	Adjustments	  	7
	 (b)
	  	Dissolution or Liquidation	  	8
	 (c)
	  	Reorganizations	  	8
	 (d)
	  	Reservation of Rights	  	8
		
	 SECTION 9. DEFERRAL OF AWARDS
	  	8
	 (a)
	  	Committee Powers	  	8
	 (b)
	  	General Rules	  	8
		
	 SECTION 10. AWARDS UNDER OTHER PLANS
	  	9
		
	 SECTION 11. LEGAL AND REGULATORY REQUIREMENTS
	  	9
		
	 SECTION 12. WITHHOLDING TAXES
	  	9
	 (a)
	  	General	  	9
	 (b)
	  	Share Withholding	  	9
		
	 SECTION 13. OTHER PROVISIONS APPLICABLE TO AWARDS
	  	9
	 (a)
	  	Transferability	  	9
	 (b)
	  	Qualifying Performance Criteria	  	9
		
	 SECTION 14. NO EMPLOYMENT RIGHTS
	  	10
		
	 SECTION 15. DURATION AND AMENDMENTS
	  	10
	 (a)
	  	Term of the Plan	  	10
	 (b)
	  	Right to Amend or Terminate the Plan	  	10
	 (c)
	  	Effect of Termination	  	10
		
	 SECTION 16. EXECUTION
	  	10

  

 -ii- 

 eGAIN COMMUNICATIONS CORPORATION 
  
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
  
 The Plan was adopted by the Board of Directors effective May 27, 2005 (the “Effective Date”). The purpose of the Plan is to promote the
long-term success of the Company and the creation of stockholder value by (a) encouraging Officers of the Company to focus on critical long-range objectives, (b) encouraging the retention of Officers with exceptional qualifications and (c) linking
Officers directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of options. 
  
 SECTION 2. DEFINITIONS. 
  
 (a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less
than 50% of such entity. 
  
 (b)
“Award” shall mean any award of an Option under the Plan. 
  
 (c) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
  
 (d) “Change in Control” shall mean the occurrence of any of the following events: 

 
 (i) A change in the composition of the Board of Directors
occurs, as a result of which fewer than one-half of the incumbent directors are directors who either: 
  
 (A) Had been directors of the Company on the “look-back date” (as defined below) (the “original directors”); or

  
 (B) Were elected, or nominated for election,
to the Board of Directors with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously
so approved (the “continuing directors”); or 
  
 (ii) Any “person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the
“Base Capital Stock”); except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and
any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or 

 
 (iii) The consummation of a merger or consolidation of
the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger,
consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or

  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
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 (iv) The sale, transfer or other disposition of all or substantially all of the
Company’s assets. 
  
 For purposes of subsection (d)(i)
above, the term “look-back” date shall mean the later of (1) the Effective Date or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
  
 For purposes of subsection (d)(ii)) above, the term “person” shall have the same meaning as when used in Sections
13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership of the Stock. 
  
 Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the
state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a Change in Control
shall not be deemed to occur if the Company files a registration statement with the Securities and Exchange Commission for the initial offering of Stock to the public. 
  
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (f) “Committee” shall mean the Compensation Committee
as designated by the Board of Directors, which is authorized to administer the Plan, as described in Section 3 hereof. 
  
 (g) “Company” shall mean eGain Communications Corporation, a Delaware corporation. 
  
 (h) “Exchange Act” shall mean the Securities Exchange
Act of 1934, as amended. 
  
 (i) “Exercise
Price” shall mean the amount for which one Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. 
  

(j) “Fair Market Value” with respect to a Share, shall mean the market price of one Share, determined by the Committee as
follows: 
  
 (i) If the Stock was traded
over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to
the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the Pink Sheets
LLC; 
  
 (ii) If the Stock was traded on The
Nasdaq Stock Market, then the Fair Market Value shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock Market; 
  
 (iii) If the Stock was traded on a United States stock exchange on the date in question, then the Fair Market Value shall be equal to the
closing price reported for such date by the applicable composite-transactions report; and 
  
 (iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on
such basis as it deems appropriate. 
  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
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 In all cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons.

  
 (k) “Nonstatutory Option” or
“NSO” shall mean an employee stock option that is not an employee incentive stock option described in Section 422 of the Code. 
  
 (l) “Officer” shall mean any individual who is a common-law employee who are directors, officers or other key employees of the
Company as approved by the Company’s Board of Directors. 
  
 (m) “Option” shall mean a Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
  
 (n) “Optionee” shall mean an individual or estate who holds an Option. 
  
 (o) “Parent” shall mean any corporation (other than
the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 
  
 (p) “Participant” shall mean an individual or estate who holds an Award. 
  
 (q) “Plan” shall mean this 2005 Management Stock
Option Plan of eGain Communications Corporation, as amended from time to time. 
  
 (r) “Service” shall mean service as an Officer. 
  
 (s) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable). 
  
 (t) “Stock” shall mean the Common Stock of the Company.

  
 (u) “Stock Option Agreement” shall mean the
agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his Option. 
  
 (v) “Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total
combined voting power of all classes of outstanding stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
  
 SECTION 3. ADMINISTRATION. 
  
 (a) Committee Composition. The Plan shall be administered by the
Committee. The Committee shall consist of two or more directors of the Company, who shall be appointed by the Board of Directors. In addition, the composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such requirements as the Internal Revenue Service may establish for outside
directors acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of the Code. 
  
 (b) Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings
at such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee.

  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -3- 

 (c) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have
full authority and discretion to take the following actions: 
  
 (i) To interpret the Plan and to apply its provisions; 
  
 (ii) To adopt, amend or rescind rules, procedures and forms relating to the Plan; 
  
 (iii) To authorize any person to execute, on behalf of the
Company, any instrument required to carry out the purposes of the Plan; 
  
 (iv) To determine when Awards are to be granted under the Plan; 
  
 (v) To select the Optionees; 
  
 (vi) To determine the number of Shares to be made subject to each Award; 
  
 (vii) To prescribe the terms and conditions of each Award, including (without limitation) the Exercise Price
and Purchase Price, and the vesting or duration of the Award (including accelerating the vesting of Awards, either at the time of the Award or thereafter, without the consent of the Participant), and to specify the provisions of the agreement
relating to such Award; 
  
 (viii) To amend any
outstanding Award agreement, subject to applicable legal restrictions and to the consent of the Participant if the Participant’s rights or obligations would be materially impaired; 
  
 (ix) To prescribe the consideration for the grant of each Award or other right under the Plan and to
determine the sufficiency of such consideration; 
  
 (x) To determine the disposition of each Award or other right under the Plan in the event of a Participant’s divorce or dissolution of marriage; 
  

(xi) To determine whether Awards under the Plan will be granted in replacement of other grants under an incentive or other compensation
plan of an acquired business; 
  
 (xii) To
correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award agreement; 
  
 (xiii) To establish or verify the extent of satisfaction of any performance goals or other conditions applicable to the grant, issuance,
exercisability, vesting and/or ability to retain any Award; and 
  
 (xiv) To take any other actions deemed necessary or advisable for the administration of the Plan. 
  
 Subject to the requirements of applicable law, the Committee may designate persons other than members of the Committee to carry out its responsibilities and may prescribe
such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or the granting of Options or other rights under the Plan to persons subject to
Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Optionees and all persons deriving their rights from an Optionee. No member of the Committee shall be liable for any
action that he has taken or has failed to take in good faith with respect to the Plan or any Option. 
  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -4- 

 SECTION 4. ELIGIBILITY. 
  

(a) General Rule. Only Officers shall be eligible for the grant of Nonstatutory Options. 
  
 SECTION 5. STOCK SUBJECT TO PLAN. 
  
 (a) Basic Limitation. The aggregate number of Shares which may be
issued under the Plan shall not exceed nine hundred sixty-two thousand four hundred (962,400) Shares. The limitations of this Section 5(a) shall be subject to adjustment pursuant to Section 8. The number of Shares which are subject to Options
outstanding at any time shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the
requirements of the Plan. Shares offered under the Plan may be authorized but unissued Shares or treasury Shares. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements
of the Plan. 
  
 (b) Award Limitation. Subject to the
provisions of Section 8, no Participant may receive Options under the Plan in any calendar year that relate to more than Shares. 
  
 (c) Additional Shares. If Shares issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under
the Plan. If Options are forfeited or terminate for any other reason before being exercised, then the corresponding Shares shall again become available for Awards under the Plan. 
  
 SECTION 6. TERMS AND CONDITIONS OF OPTIONS. 
  

(a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock
Option Agreement. The Stock Option Agreement shall specify that the Option is an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in
the Optionee’s other compensation. 
  
 (b) Number of
Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 8. 
  
 (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an NSO shall
not be less 100% of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing, a Stock Option Agreement may specify that the exercise price of an NSO may vary in accordance with a predetermined formula. Subject to the
foregoing in this Section 6(c), the Exercise Price under any Option shall be determined by the Committee at its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 7. 
  
 (d) Withholding Taxes. As a condition to the exercise of an Option,
the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such
arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. 
  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -5- 

 (e) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term shall in no event exceed five years from the date of grant. A Stock Option Agreement may provide for
accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Subject to
the foregoing in this Section 6(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire. 
  
 (f) Exercise of Options Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to which
the Optionee shall have the right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s
estate or any person who has acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the
Plan, and may reflect distinctions based on the reasons for termination of Service. 
  
 (g) Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in
the event that a Change in Control occurs with respect to the Company. 
  
 (h) Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be actively employed by, or a Consultant to, the Company (or any subsidiary) as determined in the sole discretion of the Board of Directors.
For purposes of Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or when continued service
crediting is required by applicable law. Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. The Company determines which leaves count toward Service, and when Service terminates for
all purposes under the Plan. 
  
 (i) No Rights as a
Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made,
except as provided in Section 8. 
  
 (j) Modification,
Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to the extent not previously exercised), whether or not
granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different exercise price, or in return for the grant of the same or a different number of Shares. The foregoing
notwithstanding, no modification of an Option shall, without the consent of the Optionee, materially impair his or her rights or obligations under such Option. 
  

(k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that
may apply to all holders of Shares. 
  
 (l) Buyout
Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and
based upon such terms and conditions as the Committee shall establish. 
  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -6- 

 SECTION 7. PAYMENT FOR SHARES. 
  
 (a) General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in
lawful money of the United States of America at the time when such Shares are purchased, except as provided in Section 7(b) through Section 7(g) below. 
  
 (b) Surrender of Stock. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting
to the ownership of, Shares which have already been owned by the Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. The Optionee shall not surrender,
or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes.

  
 (c) Services Rendered. At the discretion of the
Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. 
  
 (d) Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form
prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (e) Exercise/Pledge. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds
to the Company in payment of the aggregate Exercise Price. 
  
 (f) Promissory Note. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse promissory note. 
  
 (g) Other Forms of Payment. To the extent that a Stock Option
Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and rules. 
  
 (h) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement to the contrary, payment may not be made in
any form that is unlawful, as determined by the Committee in its sole discretion. 
  
 SECTION 8. ADJUSTMENT OF SHARES. 
  
 (a)
Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a
combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion,
deems appropriate in one or more of: 
  
 (i) The
number of Options available for future Awards under Section 5; 
  
 (ii) The limitations set forth in Sections 5(a) and (b); 
  
 (iii) The number of Shares covered by each outstanding Option; or 
  
 (iv) The Exercise Price under each outstanding Option. 
  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -7- 

 Except as provided in this Section 8, a Participant shall have no rights by reason of any issue by the Company of stock
of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class.

  
 (b) Dissolution or Liquidation. To the extent not
previously exercised or settled, Options shall terminate immediately prior to the dissolution or liquidation of the Company. 
  
 (c) Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the
agreement of merger or reorganization. Such agreement shall provide for: 
  
 (i) The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 
  
 (ii) The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; 
  
 (iii) The substitution by the surviving corporation or its
parent or subsidiary of its own awards for the outstanding Awards; 
  
 (iv) Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 
  
 (v) Settlement of the full value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards.

  
 (d) Reservation of Rights. Except as provided in this
Section 8, an Optionee shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the
Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option.
The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to
dissolve, liquidate, sell or transfer all or any part of its business or assets. 
  
 SECTION 9. DEFERRAL OF AWARDS. 
  
 (a)
Committee Powers. The Committee (in its sole discretion) may permit or require a Participant to have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option converted into amounts credited to a
deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market Value of such Shares as of the date when they otherwise would
have been delivered to such Participant. 
  
 (b) General
Rules. A deferred compensation account established under this Section 9 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights
other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the
Company. If the deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred
compensation accounts established under this Section 9. 
  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -8- 

 SECTION 10. AWARDS UNDER OTHER PLANS. 
  
 The Company may grant awards under other plans or programs. Such awards may not be settled in the form of Shares issued
under this Plan. 
  
 SECTION 11. LEGAL AND REGULATORY REQUIREMENTS.

  
 Shares shall not be issued under the Plan unless the
issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws
and regulations and the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which the Company determines is necessary
or advisable. The Company shall not be liable to a Participant or other persons as to: (a) the non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the
Company’s counsel to be necessary to the lawful issuance and sale of any Shares under the Plan; and (b) any tax consequences expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Award
granted under the Plan. 
  
 SECTION 12. WITHHOLDING TAXES. 
  
 (a) General. To the extent required by applicable federal, state,
local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to
issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 
  
 (b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that
otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no
event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding. 
  
 SECTION 13. OTHER PROVISIONS APPLICABLE TO AWARDS. 
  
 (a) Transferability. Unless the agreement evidencing an Award (or an amendment thereto authorized by the Committee)
expressly provides otherwise, no Award granted under this Plan, nor any interest in such Award, may be sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all
restrictions applicable to Shares issued under such Award), other than by will or the laws of descent and distribution. Any purported assignment, transfer or encumbrance in violation of this Section 13(a) shall be void and unenforceable against the
Company. 
  
 (b) Qualifying Performance Criteria. The
number of Shares or other benefits granted, issued, retainable and/or vested under an Award may be made subject to the attainment of performance goals for a specified period of time relating to one or more of the following performance criteria,
either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and measured either annually or cumulatively over a
period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group or index, in each case as specified by the Committee in the Award: (a) cash flow, (b) earnings per
share, (c) earnings before interest, taxes and amortization, (d) return on equity, (e) total stockholder return, (f) share price performance, (g) return on capital, (h) return on assets or net assets, (i) revenue, (j) income or net income, (k)
operating income or net operating income, (l) operating profit or net operating profit, (m) operating margin or profit margin, (n) return on operating revenue, (o) return on invested capital, or (p) market segment shares (“Qualifying
Performance Criteria”). 
  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -9- 

 
The Committee may appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to exclude any of the following events that
occurs during a performance period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals
for reorganization and restructuring programs and (v) any extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in managements’ discussion and analysis of financial condition and results of
operations appearing in the Company’s annual report to stockholders for the applicable year. If applicable, the Committee shall determine the Qualifying Performance Criteria not later than the 90th day of the performance period, and shall determine and certify, for each Participant, the extent to which the Qualifying Performance Criteria have been met.
The Committee may not in any event increase the amount of compensation payable under the Plan upon the attainment of a Qualifying Performance Goal to a Participant who is a “covered employee” within the meaning of Section 162(m) of the
Code. 
  
 SECTION 14. NO EMPLOYMENT RIGHTS. 
  
 No provision of the Plan, nor any right or Option granted under the Plan,
shall be construed to give any person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice.

  
 SECTION 15. DURATION AND AMENDMENTS. 
  
 (a) Term of the Plan. The Plan, as set forth herein, shall terminate
automatically on May 27, 2015 and may be terminated on any earlier date pursuant to Subsection (b) below. 
  
 (b) Right to Amend or Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under
any Award granted before amendment of the Plan shall not be materially impaired by such amendment, except with consent of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the
extent required by applicable laws, regulations or rules. 
  
 (c) Effect of Termination. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan shall not affect Awards previously granted under the Plan. 
  
 SECTION 16. EXECUTION. 
  
 To record the adoption of the Plan by the Board of Directors, the Company has caused its authorized officer to execute the
same. 
  

			
	eGAIN COMMUNICATIONS CORPORATION
		
	By	 	  

		
	Name	 	  

		
	Title	 	  

  

 eGAIN COMMUNICATIONS CORPORATION 
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 -10- 

 eGAIN COMMUNICATIONS CORPORATION 
  
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 NOTICE OF STOCK OPTION GRANT 
  

You have been granted the following Option to purchase Common Stock of eGAIN COMMUNICATIONS CORPORATION, a Delaware corporation (the
“Company”) under the Company’s 2005 Management Stock Option Plan (the “Plan”): 
  

			
	Name of Optionee:	  	[Name of Optionee]
		
	Total Number of Option Shares Granted:	  	[Total Number of Shares]
		
	Type of Option:	  	Nonstatutory Stock Option
		
	Exercise Price Per Share:	  	$                    
		
	Grant Date:	  	[Date of Grant]
		
	Vesting Commencement Date:	  	[Vesting Commencement Date]
		
	Vesting Schedule:	  	This Option becomes exercisable with respect to 1/48th of the shares subject to this Option when you complete each month of continuous “Service” (as defined in the Plan) from the
Vesting Commencement Date.
		
	Expiration Date:	  	[Expiration Date] This Option expires earlier if your Service terminates earlier, as descried in the Stock Option Agreement.

  
 By your signature and
the signature of the Company’s representative below, you and the Company agree that this Option is granted under and governed by the term and conditions of the Plan and the Stock Option Agreement, both of which are attached to and made a part
of this document. 
  

					
	OPTIONEE:	 	eGAIN COMMUNICATIONS CORPORATION
			
	  

	 	By:	 	

	Optionee’s Signature	 	 	 	 
	  

	 	Title:	 	

	Optionee’s Printed Name	 	 	 	 

  

 eGAIN COMMUNICATIONS CORPORATION 
 NOTICE OF STOCK OPTION GRANT 
  
 -1- 

 eGAIN COMMUNICATIONS CORPORATION 
  
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 STOCK OPTION AGREEMENT 
  

			
	Tax Treatment	  	This Option is intended to be a nonstatutory option, as provided in the Notice of Stock Option Grant.
		
	Vesting	  	This Option becomes exercisable in installments, as shown in the Notice of Stock Option Grant. This Option will in no event become exercisable for additional shares after your Service has
terminated for any reason.
		
	Term	  	This Option expires in any event at the close of business at Company headquarters on the day before the 5th anniversary of the Grant Date, as shown on the Notice of Stock Option Grant. This Option may expire earlier if your Service terminates, as described below.
		
	Regular Termination	  	If your Service terminates for any reason except death or “Total and Permanent Disability” (as defined in the Plan), then this Option will expire at the close of business at Company
headquarters on the date three (3) months after the date your Service terminates (or, if earlier, the Expiration Date). The Company has discretion to determine when your Service terminates for all purposes of the Plan and its determinations are
conclusive and binding on all persons.
		
	Death	  	If you die, then this Option will expire at the close of business at Company headquarters on the date 12 months after the date your Service terminates (or, if earlier, the Expiration Date).
During that period of up to 12 months, your estate or heirs may exercise the Option.
		
	Disability	  	If your Service terminates because of your Total and Permanent Disability, then this Option will expire at the close of business at Company headquarters on the date 12 months after the date
your Service terminates (or, if earlier, the Expiration Date).
		
	Leaves of Absence	  	 For purposes of this Option, your Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence,
if the leave was approved by the Company in writing and if continued crediting of Service is required by the terms of the leave or by applicable law. But your Service terminates when the approved leave ends, unless you immediately return to active
work.
  
 If you go on a leave of absence, then the vesting schedule specified in
the Notice of Stock Option Grant may be adjusted in accordance with the Company’s leave of absence policy or the terms of your leave. If you commence working on a part-time basis, then the vesting schedule specified in the Notice of Stock
Option Grant may be adjusted in accordance with the Company’s part-time work policy or the terms of an agreement between you and the Company pertaining to your part-time schedule.

  

 eGAIN COMMUNICATIONS CORPORATION 
 STOCK OPTION AGREEMENT 
  
 -1- 

							
	Restrictions on Exercise	 	The Company will not permit you to exercise this Option if the issuance of shares at that time would violate any law or regulation. The inability of the Company to obtain approval
from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of the Company stock pursuant to this Option shall relieve the Company of any liability with respect to the non-issuance or sale of the
Company stock as to which such approval shall not have been obtained. However, the Company shall use its best efforts to obtain such approval.
		
	Notice of Exercise	 	When you wish to exercise this Option you must notify the Company by completing the attached “Notice of Exercise of Stock Option” form and filing it with the Human
Resources Department of the Company. You notice must specify how many shares you wish to purchase. Your notice must also specify how your shares should be registered. The notice will be effective when it is received by the Company. If someone else
wants to exercise this Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so.
		
	Form of Payment	 	When you submit your notice of exercise, you must include payment of the Option exercise price for the shares you are purchasing. Payment may be made in the following
form(s):
				
	 	 	 	 	•	  	Your personal check, a cashier’s check or a money order.
				
	 	 	 	 	•	  	Certificates for shares of Company stock that you own, along with any forms needed to effect a transfer of those shares to the Company. The value of the shares, determined as of the effective
date of the Option exercise, will be applied to the Option exercise price. Instead of surrendering shares of Company stock, you may attest to the ownership of those shares on a form provided by the Company and have the same number of shares
subtracted from the Option shares issued to you. However, you may not surrender, or attest to the ownership of shares of Company stock in payment of the exercise price if your action would cause the Company to recognize a compensation expense (or
additional compensation expense) with respect to this Option for financial reporting purposes.
				
	 	 	 	 	•	  	By delivering on a form approved by the Committee of an irrevocable direction to a securities broker approved by the Company to sell all or part of your Option shares and to deliver to the
Company from the sale proceeds in an amount sufficient to pay the Option exercise price and any withholding taxes. The balance of the sale proceeds, if any, will be delivered to you. The directions must be given by signing a special “Notice of
Exercise” form provided by the Company.
				
	 	 	 	 	•	  	Irrevocable directions to a securities broker or lender approved by the Company to pledge Option shares as security for a loan and to deliver to the Company from the loan proceeds an amount
sufficient to pay the Option exercise price and any withholding taxes. The directions must be given by signing a special “Notice of Exercise” form provided by the Company.
			
	 	 	 	 	Notwithstanding the foregoing, payment may not be made in any form that is unlawful, as determined by the Company in its sole discretion.

  

 eGAIN COMMUNICATIONS CORPORATION 
 STOCK OPTION AGREEMENT 
  
 -2- 

			
	Withholding Taxes and Stock Withholding	 	You will not be allowed to exercise this Option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the Option exercise. These
arrangements may include withholding shares of Company stock that otherwise would be issued to you when you exercise this Option. The value of these shares, determined as of the effective date of the Option exercise, will be applied to the
withholding taxes.
		
	Restrictions on Resale	 	By signing this Agreement, you agree not to sell any Option shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale
(e.g., a lock-up period after the Company goes public). This restriction will apply as long as you are an employee, consultant or director of the Company or a subsidiary of the Company.
		
	Transfer of Option	 	 In general, only you can exercise this Option prior to your death. You cannot transfer or assign this Option, other than as designated by you by
will or by the laws of descent and distribution, except as provided below. For instance, you may not sell this Option or use it as security for a loan. If you attempt to do any of these things, this Option will immediately become invalid. You may in
any event dispose of this Option in your will. Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company obligated to recognize your former
spouse’s interest in your Option in any other way.
  
 However, the
“Committee” (as defined in the Plan) may, in its sole discretion, allow you to transfer this Option as a gift to one or more family members. For purposes of this Agreement, “family member” means a child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law or sister-in-law (including adoptive relationships), any individual sharing your household (other than a tenant or employee), a trust in
which one or more of these individuals have more than 50% of the beneficial interest, a foundation in which you or one or more of these persons control the management of assets, and any entity in which you or one or more of these persons own more
than 50% of the voting interest.
  
 In addition, the Committee may, in its sole
discretion, allow you to transfer this option to your spouse or former spouse pursuant to a domestic relations order in settlement of marital property rights.
  

The Committee will allow you to transfer this Option only if both you and the transferee(s) execute the forms prescribed by the Committee, which include the consent of
the transferee(s) to be bound by this Agreement.

		
	Retention Rights	 	Neither your Option nor this Agreement gives you the right to be retained by the Company or a subsidiary of the Company in any capacity. The Company and its subsidiaries reserve the right to
terminate your Service at any time, with or without cause.
		
	Stockholder Rights	 	You, or your estate or heirs, have no rights as a stockholder of the Company until you have exercised this Option by giving the required notice to the Company and paying the exercise price.
No adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this Option, except as described in the Plan.
		
	Adjustments	 	In the event of a stock split, a stock dividend or a similar change in Company stock, the number of shares covered by this Option and the exercise price per share may be adjusted pursuant to
the Plan.

  

 eGAIN COMMUNICATIONS CORPORATION 
 STOCK OPTION AGREEMENT 
  
 -3- 

			
	Applicable Law	 	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions).
		
	 The Plan and
 Other
Agreements
	 	The text of the Plan is incorporated in this Agreement by reference. All capitalized terms in the Stock Option Agreement shall have the meanings assigned to them in the Plan. This Agreement
and the Plan constitute the entire understanding between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this Option are superseded. This Agreement may be amended only by another written
agreement, signed by both parties.

  
 BY SIGNING THE COVER
SHEET OF THIS AGREEMENT 
 YOU AGREE TO ALL OF THE TERMS AND CONDITIONS 
 DESCRIBED ABOVE IN THE PLAN 
  

 eGAIN COMMUNICATIONS CORPORATION 
 STOCK OPTION AGREEMENT 
  
 -4- 

 eGAIN COMMUNICATIONS CORPORATION 
  
 2005 MANAGEMENT STOCK OPTION PLAN 
  
 NOTICE OF EXERCISE OF STOCK OPTION 
  
 You must sign this Notice on the last page before submitting it to the Company 
  
 OPTIONEE INFORMATION: 
  

					
	Name: ___________________________________________	 	 	  	Social Security Number:
	 	 	 	  	____________________________________
			
	Address: _________________________________________	 	 	  	Employee Number:
	 	 	 	  	____________________________________

  
 OPTION INFORMATION: 

 

					
	Date of Grant:                     , 200  	 	 	  	Type of Stock Option:
	Exercise Price per Share: $                    	 	 	  	Nonstatutory (NSO)

  
 Total number of shares of Common Stock
of eGAIN COMMUNICATIONS CORPORATION, a Delaware corporation (the “Company”) covered by option:                     

  
 EXERCISE INFORMATION: 
  
 Number of shares of Common Stock of the Company for which option is being exercised now:
                     
 (These shares are referred
to below as the “Purchased Shares.”) 
  
 Total exercise price for the
Purchased Shares: $                     
  
 Form of payment enclosed [check all that apply]: 
  

	 ̈	Check for $                    , payable to “eGAIN COMMUNICATIONS
CORPORATION” 

  

	 ̈	Certificate(s) for                      shares of Common Stock of the
Company that I have owned for at least six months or have purchased in the open market. (These shares will be valued as of the date when the Company receives this notice.) 

  

	 ̈	Attestation Form covering shares of Common Stock of the Company. (These shares will be valued as of the date when the Company receives this notice.) 

  

 eGAIN COMMUNICATIONS CORPORATION 
 NOTICE OF EXERCISE OF STOCK OPTION 
  
 -1- 

 Name(s) in which the Purchased Shares should be registered 
 [please check one box]: 
  

					
	  ̈  
	 	In my name only	  	 
			
	  ̈  
	 	 In the names of my spouse and myself as community property
	  	My spouse’s name (if applicable):
			
	 	 	 	  	__________________________
			
	  ̈  
	 	 In the names of my spouse and myself as joint tenants with the right of survivorship
	  	 
			
	  ̈  
	 	 In the name of an eligible revocable trust
	  	Full legal name of revocable trust:
			
	 	 	 	  	__________________________
			
	 	 	 	  	__________________________
			
	 	 	 	  	__________________________
		
	 The certificate for the Purchased Shares should be sent to the following address:
	  	 
	 	  	__________________________
		
	 	  	__________________________
		
	 	  	__________________________
		
	 	  	__________________________
		
	 	  	__________________________
		
	 	  	__________________________

  
 ACKNOWLEDGMENTS: 
  

	1.	I understand that all sales of Purchased Shares are subject to compliance with the Company’s policy on securities trades. 

  

	2.	I hereby acknowledge that I received and read a copy of the prospectus describing the Company’s 2005 Management Stock Option Plan and the tax consequences of an exercise.

  

	3.	In the case of a nonstatutory option, I understand that I must recognize ordinary income equal to the spread between the fair market value of the Purchased Shares on the date of
exercise and the exercise price. I further understand that I am required to pay withholding taxes at the time of exercising a nonstatutory option. 

  

	4.	I acknowledge that the Company has encouraged me to consult my own adviser to determine the form of ownership that is appropriate for me. In the event that I choose to transfer my
Purchased Shares to a trust that does not satisfy the requirements of the Internal Revenue Service (i.e., a trust that is not an eligible revocable trust), I also acknowledge that the transfer will be treated as a “disposition” for tax
purposes. 

  
 SIGNATURE AND DATE: 
  

			
	  

	 	                        , 200  

  

 eGAIN COMMUNICATIONS CORPORATION 
 NOTICE OF EXERCISE OF STOCK OPTION 
  
 -2-

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