Document:

PLEDGE AGREEMENT, TIMOTHY J. DALTON

EXHIBIT 10.30

PLEDGE AGREEMENT 

      THIS PLEDGE AGREEMENT (as amended from time to time, this “Agreement”), dated as of April 6, 2001, is made by Timothy J. Dalton (“Pledgor”), in favor of Network Engines, Inc., a Delaware
corporation (“Secured Party”). 

      In order to induce Secured Party to make the loan contemplated by the promissory note of even date herewith in the amount of $73,928.00 as the same may be amended, replaced, restated or otherwise modified
from time to time (the “Note”), Pledgor hereby agrees as follows: 

 ARTICLE 1. THE PLEDGE. 

 Section 1.1. Pledge. Pledgor hereby pledges to Secured Party, and grants to Secured Party a security interest in, the following (the “Pledged Collateral”): 

  

	 	(a)	All shares of capital stock of the Company now owned or hereafter acquired by the Debtor and all options and other rights to acquire shares of capital stock of the Company now owned or hereafter acquired by
the Debtor (the “Pledged Securities”), and all stock dividends and other property and proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for or upon sale of any or all of the Pledged
Securities; and 
	 	 	 
	 	(b)	all additional securities or other consideration from time to time acquired by Pledgor in substitution for or in respect of the Pledged Securities, and the certificates representing such additional
securities, and all stock dividends and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such securities. 

 Section 1.2. Security for Obligations. This Agreement secures the payment of all obligations of the Pledgor now or hereafter existing under the Note (all such obligations being the “Obligations”). 

 Section 1.3. Delivery of Pledged Collateral; Sale of Pledged Collateral. All certificates or instruments representing or evidencing the Pledged Collateral shall be delivered to Secured Party to be held by Secured Party and shall be in
suitable form for transfer by delivery, or such certificates or instruments shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to Secured Party. Secured Party shall have the
right, at any time following an Event of Default, in its sole discretion and without notice to Pledgor, to sell or to transfer to or to register in the name of Secured Party, or any of Secured Party’s nominees (or to direct the Escrow Agent to
sell or to so transfer) any or all of the Pledged Collateral, subject only to the revocable rights specified in Section 4.2(a). Secured Party shall send notice to Pledgor of any such sale, transfer, registration or exchange of the Pledged Collateral
promptly after such event. 

 Section 1.4. Continuing Agreement. This Agreement shall create a continuing security interest in the Pledged Collateral and shall remain in full force and effect until payment in full of the Obligations. Upon the payment in full of the
Obligations, in cash, Pledgor shall be entitled to the return and re-transfer to him, upon his request, of such of the Pledged Collateral as shall not have been sold or otherwise applied pursuant to the terms hereof. 

 Section 1.5. Security Interest Absolute. All rights of Secured Party and security interests hereunder, and all obligations of Pledgor hereunder shall be absolute and unconditional, 

irrespective of any defenses whatsoever available to the Pledgor. 

 ARTICLE 2. COVENANTS. 

 Section 2.1. Further Assurances. Pledgor agrees that at any time and from time to time, at Pledgor’s expense, Pledgor will promptly execute and deliver all further instruments and documents, and take all further action, that may be
necessary or desirable, or that Secured Party may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or under the Note or to enable Secured Party to exercise and enforce Secured
Party’s rights and remedies hereunder or under the Note with respect to any Pledged Collateral. 

 ARTICLE 3. SECURED PARTY. 

 Section 3.1. Attorney-in-Fact. Pledgor hereby irrevocably appoints the Secured Party as the Pledgor’s attorney-in-fact with full power of substitution and with full authority in the place and stead of Pledgor and in the name of
Pledgor or otherwise, from time to time in Secured Party’s discretion to take any action and to execute any instrument which Secured Party may reasonably deem necessary or advisable to accomplish the purposes of this Agreement, including
without limitation to receive, endorse and collect all instruments made payable to Pledgor representing any dividend, interest payment or other distribution in respect of the Pledged Collateral or any part thereof and to give full discharge for the
same. 

 Section 3.2. Right To Perform. If Pledgor fails to perform any agreement contained herein, Secured Party may perform, or cause performance of, such agreement. 

 ARTICLE 4. DEFAULT. 

 Section 4.1. Default; Event of Default. 

      For purposes of this Agreement the terms “Default” and “Event of Default” shall have the following meanings: 

	 	(a)	“Default” means the occurrence of any event or condition that with the passage of time or giving of notice, or both, would constitute an Event of Default. 
	 	 	 
	 	(b)	 The occurrence of any one or more of the following events or conditions shall constitute an “Event of Default” under this Agreement: 
	 	 	 
	 	 	(i)	Failure of the Pledgor to make any payment of principal or interest when due under the Note; 
	 	 	 	 
	 	 	(ii)	Receipt by the Pledgor of written notice that the Pledgor has violated the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between
the Pledgor and the Secured Party;
	 	 	 	 
	 	 	(iii)	Breach of or failure in the due observance or performance of any covenant, condition or agreement on the part of Pledgor to be observed or performed pursuant to this Agreement or the Note, which such breach or failure is
not cured within 30 days after written notice thereof; 

 

	 	 	(iv)	if Pledgor becomes insolvent, files or has filed against him or her a petition under any chapter of the United States Bankruptcy Code, 11 U.S.C. § 101 et seq. (or any similar petition under any
insolvency law of any jurisdiction), proposes any liquidation, composition or financial reorganization with his creditors, makes an assignment or trust mortgage for the benefit of creditors, or if a receiver, trustee, custodian or similar agent is
appointed or takes possession with respect to any property or business of Pledgor; or 
	 	 	 	 
	 	 	(v)	if any lien, encumbrance or adverse claim of any nature whatsoever is asserted with respect to any Shares. 

Section 4.2. Sale of Pledged Securities; Voting Rights; Dividends; Etc. 

  

	 	(a)	So long as no Default or Event of Default shall have occurred which has not been expressly waived: 
	 	 	 
	 	 	(i) 	Pledgor shall be entitled to sell all or a portion of the Pledged Securities, provided that, as a condition to the release of the Secured Party's security interest, 75% of all proceeds from any such sale are promptly
applied to payment of Obligations outstanding under the Note, and Pledgor agrees to reasonable procedures and safeguards requested by the Secured Party to facilitate any such application of proceeds; 
	 	 	 
	 	 	(ii)	Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral or any part thereof for any purpose not inconsistent with the terms of this Agreement or the Note;
and
	 	 	 	 
	 	 	(iii)	Pledgor shall be entitled to receive and retain any and all cash dividends paid in respect of the Pledged Collateral.
	 	 	 	 
	 	(b)	Upon the occurrence of a Default or Event of Default and thereafter unless expressly waived: 
	 	 	 	 
	 	 	(i)	All rights of Pledgor to sell Pledged Securities which Pledgor would otherwise be entitled to sell under Section 4.2(a)(i), to exercise the voting and other consensual rights which Pledgor would otherwise be entitled to
exercise pursuant to Section 4.2.(a)(ii) and to receive the dividends which Pledgor would otherwise be authorized to receive and retain pursuant to Section 4.2.(a)(iii) shall cease, and all such rights shall thereupon become vested in Secured Party,
who shall thereupon have the sole right to exercise such voting and other consensual rights and to receive and hold as Pledged Collateral such dividends. 
	 	 	 	 
	 	 	(ii)	All proceeds and dividends which are received by Pledgor contrary to the provisions of Section 4.2.(b)(i) shall be received in trust for the benefit of Secured Party, shall be segregated from other funds of Pledgor, and
shall be forthwith paid over to Secured Party as Pledged Collateral in the same form as so received (with any necessary endorsement).

Section 4.3. Remedies Upon Default. If any Event of Default shall have occurred which has not been expressly waived: 

  

	 	(a)	Secured Party may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to Secured Party, all the rights and remedies of a secured party on
default under the Uniform Commercial Code (the “UCC”) in effect in the Commonwealth of Massachusetts at that time. 

  

	 	(b)	Any cash held by Secured Party as Pledged Collateral and all cash proceeds received by Secured Party in respect of any sale of, collection from or other realization upon all or any part of the Pledged Collateral may, in
the discretion of Secured Party be held by Secured Party as collateral for, and/or then or at any time thereafter applied in whole or in part by Secured Party against, all or any part of the Obligations in such order as Secured Party shall elect.
Any surplus of such cash or cash proceeds held by Secured Party and remaining after payment in full of all the Obligations shall be paid over to Pledgor or to whomsoever may be lawfully entitled to receive such surplus. 

 ARTICLE 5. MISCELLANEOUS. 

 Section 5.1. Amendments, Etc. No amendment or waiver of any provision of this Agreement nor consent to any departure by Pledgor herefrom, shall in any event be effective unless the same shall be in writing and signed by Secured Party, and
then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No failure on the part of Secured Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver
thereof or preclude any other or further exercise thereof or the exercise of any other right. The remedies provided herein are cumulative and not exclusive of any remedies provided at law. 

 Section 5.2. Notices. All notices made or required to be made hereunder shall be sent by United States first class or certified or registered mail, with postage prepaid, or delivered by hand to the Pledgor or the Secured Party, as the
case may be, at the respective address first written above. Notice by mail shall be deemed to have been made on the date when the notice is deposited in the mail. 

 Section 5.3. Binding Nature. This Agreement shall (a) be binding upon Pledgor, his heirs, executors, personal representatives and assigns, and (b) inure, together with the rights and remedies of Secured Party hereunder, to the benefit of
Secured Party’s successors, transferees and assigns. 

 Section 5.4. Governing Law; Terms. This Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts. Unless otherwise defined herein, terms defined in Article 9 of the Uniform
Commercial Code in the Commonwealth of Massachusetts are used herein as therein defined. 

 Section 5.5. Headings for Convenience. The underlined or capitalized captions of this Agreement are for convenience of reference only and shall not be deemed to define or limit the provisions hereof or to affect their construction or
application. 

 Section 5.6. Termination. This Agreement shall terminate on the payment in full of the Obligations. 

 [Signature Page to Follow] 

     IN WITNESS WHEREOF, Pledgor and Secured Party have caused this Agreement to be duly executed and delivered as of the date first above written. 

  

	 	PLEDGOR
	 	 
	 	 
	 	/s/ Timothy J. Dalton__________________
	 	Timothy J. Dalton 
	 	 
	 	 
	 	NETWORK ENGINES, INC
	 	 
	 	 
	 	By: /s/ Douglas G. Bryant______________
	 	Its: Vice President of Administration, Chief
	 	Financial Officer, Treasurer and Secretary 
	 	 
	 	 

 

 .<PAGE>

                      BOTTOMLINE TECHNOLOGIES (DE), INC.
                               155 FLEET STREET
                        PORTSMOUTH, NEW HAMPSHIRE 03801

                                 April 26, 2001

Re: Bottomline Technologies (de), Inc. Loan Notes

Dear ____________:

     In accordance with Section 8 of the Bottomline Technologies (de), Inc.
("Bottomline") Loan Notes (the "Notes") dated August 28, 2000 held by
_______________ (the "Holders"), the parties to the Notes have agreed to enter
into two variations to the Notes that provide that the date of payment of the
Notes and the related rights of Bottomline to tender shares of common stock of
Bottomline, $.001 par value per share (the "Common Stock") in redemption of
these Notes shall be April 6, 2001, rather than August 28, 2001 and that, for
the purposes of determining the number of shares of Common Stock issuable to the
Holders in redemption of the Notes, the Common Stock shall be valued at $29.25
per share.  Pursuant to these agreed variations, Bottomline shall deliver
______________ shares of Common Stock in redemption of the Notes, covering
principal and interest accrued as of April 5, 2001.  This letter evidences these
agreed variations and related arrangements.

Registration of Common Stock
----------------------------

     Within sixty (60) days following the date of this letter, Bottomline shall
file a Registration Statement on Form S-3 covering the resale to the public by
the Holders of the Common Stock.  The registration rights of the Holders shall
be subject to Subsections 3, 4 and 6 of Clause 12 of the Share Purchase
Agreement dated as of August 28, 2000 between Checkpoint (Holdings) Limited and
the persons set forth in Column A of Schedule 1 thereto (the "Share Purchase
Agreement").  The registration rights of the Holders shall also be subject to
Subsection 2 of Clause 12 of the Share Purchase Agreement, but only in respect
to the suspension of the registration statement (rather than the delay of filing
of the registration statement) and only during the period ended one year from
the date of the filing of such registration statement.

Lock-Up
-------

     Notwithstanding whether the Registration Statement on Form S-3 has been
declared effective by the Securities and Exchange Commission, prior to October
28, 2001, no Holder shall, directly or indirectly, sell, offer to sell, contract
to sell, grant any option or warrant for the sale or purchase of, pledge, or
otherwise dispose of, any shares of the Common Stock issued in redemption of the
Notes (other than to Affiliates of such Holder, as such term is defined in the
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder); nor may any Holder engage in any hedging or other transaction which
is designed to or reasonably expected to lead to or result in a sale or
disposition of any shares of the Common Stock issued in redemption of the Notes,
even if such shares would be disposed of by someone other than the
<PAGE>

Holder. Such prohibited hedging or other transactions includes without
limitation any short sale or any purchase, sale or grant of any right (including
without limitation any put or call option) with respect to any of such shares.
Notwithstanding the foregoing, the lock-up shall terminate upon the execution by
Bottomline of a definitive agreement providing for the transfer of 50% or more
of its outstanding Common Stock, whether by way of merger, exchange offer or
otherwise.

Securities Law Compliance
-------------------------

     No Holder may resell the shares of Common Stock in the United States unless
such resale is in accordance with (i) the provisions of Regulation S promulgated
under the Securities Act of 1933, as amended (the "Securities Act"), (ii)
pursuant to an effective registration statement under the Securities Act, or
(iii) pursuant to an available exemption from registration under the Securities
Act or in the United Kingdom pursuant to an available prospectus exemption under
applicable securities legislation.

Contingent Payment
------------------

     If (i) at any time on or before June 30, 2001, Bottomline signs a
definitive agreement providing for the transfer of 50% or more of its
outstanding Common Stock, whether by way of merger, exchange offer or otherwise,
or (ii) at any time on or before August 28, 2001, Bottomline completes a
transaction involving the transfer of 50% or more of its outstanding Common
Stock, whether by way of merger, exchange offer or otherwise, then Bottomline
irrevocably agrees to pay to all holders of Bottomline loan notes dated August
28, 2000 (the "Bottomline Notes") that have redeemed their loan notes for Common
Stock (the "Qualifying Holders"), simultaneously with closing of the transaction
contemplated by such definitive agreement and pro rata in accordance with the
principal amount of their respective loan notes, an amount calculated on the
following basis:

     .    If the price per share, on a fully-diluted basis, of the contemplated
          transaction is $10.00 or less, Bottomline shall pay the Qualifying
          Holders $10 million dollars in cash, adjusted as provided below.

     .    If the price per share is greater than $10.00 and less than $15.00,
          Bottomline shall pay the Qualifying Holders in cash an amount equal to
          the product of (a) $10 million dollars multiplied by (b) a fraction,
          (i) the numerator of which shall be 20.00 less the applicable price
          per share, and (ii) the denominator of which shall be 10.00, adjusted
          as provided below.

     .    If the price per share is $15.00, Bottomline shall pay the Qualifying
          Holders $5 million dollars in cash, adjusted as provided below.

     .    If the price per share is greater than $15.00 and less than $30.00,
          Bottomline shall pay the Qualifying Holders in cash an amount equal to
          the product of (a) $5 million dollars multiplied by (b) a fraction,
          (i) the numerator of which shall be 30.00 less the applicable price
          per share, and (ii) the denominator of which shall be 15.00, adjusted
          as provided below.

     .    If the price per share is equal to or greater than $30.00 per share,
          then Bottomline shall have no payment obligation of any nature
          hereunder.
<PAGE>

     The aggregate payment set forth above shall be adjusted to the extent
that certain holders of the Bottomline Notes do not elect to redeem their
Bottomline Notes for shares of Common Stock by multiplying the amount otherwise
due hereunder by a fraction, the numerator of which shall be the aggregate
principal amount of the Bottomline Notes exchanged for Common Stock and the
denominator of which shall be the aggregate principal amount of all Bottomline
Notes.

     For the purposes of calculating the price per share hereunder, the price
per share shall be based upon the exchange ratio or other pricing arrangement
contemplated by the definitive agreement, rounded upwards to the nearest whole
cent and the price per share shall be calculated after reversing the effect of
any share split or division or other issue of new shares of Common Stock
occurring after the date of this letter.

Delivery Procedure
------------------

     Upon the execution of this letter by both parties hereto:

     (i)    Bottomline shall promptly deliver to the Holders stock
            certificate(s) representing the prepayment in full of the principal
            and interest accrued on the Notes; and

     (ii)   the Notes shall be cancelled.

Escrow
------

     Bottomline hereby agrees to release to the Holders, within ten (10)
business days of the date of this letter, all loan notes, cash and shares of
Common Stock of the Holders held in escrow pursuant to the Retention and Escrow
Agreement entered into as of August 28, 2000 by and among Bottomline, the
Indemnifying Shareholders, __________________ and State Street Bank and Trust
Company (the "Escrow Agreement"). Bottomline hereby waives its rights under
Subsection 6 of Clause 5 of the Share Purchase Agreement. In the absence of
fraud, dishonesty or willful concealment on the part of the Holders or their
agents, the liability of the Holders in respect of all claims under the
Warranties (as defined in the Share Purchase Agreement), under the Tax Deed (as
defined in the Share Purchase Agreement) and under Section 3(b) of the Escrow
Agreement shall terminate herewith.

     Please sign below to indicate your agreement with the foregoing.

                              BOTTOMLINE TECHNOLOGIES (de), INC.

                              By:
                                  -----------------------------------------
                                  Robert A. Eberle
                                  Executive Vice President, Chief Financial
                                  Officer and Treasurer

AGREED effective as of April 6, 2001:

By: ______________________________
  Name:

By: ______________________________
  Name:

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