Document:

Amendment to the Loan and Security Agreement with Silicon Valley Bank

 Exhibit 10.1 
 Silicon Valley Bank 
 Amendment to Loan and Security Agreement 
  

			
	Borrower:	  	eGain Communications Corporation
	Date:	  	December 28, 2007

 This Amendment to Loan and Security Agreement and Limited Waiver is entered into between
Silicon Valley Bank (“Bank”) and the borrower named above (“Borrower”) as of the above-stated date. 
 The Parties agree
to amend the Loan and Security Agreement between them, dated October 29, 2004 (as otherwise amended, if at all, the “Loan Agreement”), as follows, effective as of the date hereof unless otherwise specifically set forth herein, and
Bank agrees to the limited waiver set forth below. (Capitalized terms used but not defined in this Amendment, shall have the meanings set forth in the Loan Agreement.) 
 1. Modification to Credit Limit Section of Schedule 1. Section 1 of Schedule 1 to the Loan Agreement entitled “1. Credit Limit (Section 2.1.1)” is hereby amended in its entirety to read as
follows: 
 “1. CREDIT LIMIT (Section 2.1.1): An amount not to exceed: 
  

	 	(a)	the lesser of 

 “(1) $3,000,000 at any one
time outstanding (the ‘Committed Revolving Line’), minus all amounts for services utilized under the Cash Management Services Sublimit, or 
 (2) The sum of the following: 
  

	 	(A)	80% (an ‘Advance Rate’) of the amount of Borrower’s Eligible Accounts (the ‘Borrowing Base’), subject to the Deferred Revenue Advances Provisions (as
defined below); 

  

	 	(B)	50% (an ‘Advance Rate’) of an amount equal to (i) Borrower’s unrestricted cash on deposit with Bank, minus (ii) the total outstanding balance of the
Obligations; and 

			
	Silicon Valley Bank	  	Amendment to Loan Agreement

  

	 	(C)	50% (an ‘Advance Rate’) of Allowed Hosting Orders (as defined below) (and with such Advances being referred to herein as the ‘Hosting Order Advances’),
provided that the amount of Hosting Order Advances shall not exceed $1,000,000 at any time, provided, further, that Hosting Order Advances shall be subject at all times to the Hosting Order Advances Provisions (as defined
below); 

 Minus 
  

	 	(b)	the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), and the FX Reserve and minus all amounts for services utilized under the Cash
Management Services Sublimit. 

 Bank may, from time to time, modify the Advance Rate, in its good faith business judgment, upon
notice to the Borrower, based on changes in collection experience with respect to Accounts or other issues or factors relating to the Accounts or other Collateral. 
  

			
	Letter of Credit Sublimit
	(Section 2.1.2):	  	$2,000,000

 Bank will issue or have issued Letters of Credit for Borrower’s account not exceeding
(i) the lesser of the Committed Revolving Line or the Borrowing Base, minus (ii) the outstanding principal balance of the Advances minus the FX Reserve and minus all amounts for services utilized under the Cash Management Services
Sublimit; however, the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) may not exceed the Letter of Credit Sublimit set forth above. 
  

			
	FX Reserve
	(Section 2.1.3):	  	$2,000,000

  

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	Silicon Valley Bank	  	Amendment to Loan Agreement

  

			
	Cash Management	  	
	Services Sublimit	  	
	(Section 2.1.4):	  	$2,000,000

 As used herein, the term “Deferred Revenue Advances Provisions” shall mean the
following on a collective basis: (1) Clause (1) of the definition of Eligible Accounts excludes from borrowing the following Accounts (the “Deferred Revenue Accounts”): Accounts as to which there is deferred revenue which, in
Bank’s good faith business judgment, represents a potential offset to such Account; (2) Notwithstanding such exclusion, Bank agrees, in its discretion, to make available Advances to Borrower based on Deferred Revenue Accounts
(“Deferred Revenue Advances”) an of the last day of each month only, and shall, in any event, only be; available at the Bank’s discretion; (3) the aggregate amount of any such Deferred Revenue Advances shall not exceed
$1,000,000; (4) all Deferred Revenue Advances that are made as of the last day of any month are required to be repaid in full on the first Business Day of the immediately following month; and (5) in order to effectuate the foregoing,
Borrower shall, at the request of Bank, submit a loan payment request in the form of Exhibit D hereto (the “Loan Payment Form”) on the date of the making of any Deferred Revenue Advance such that such Advance shall be repaid in accordance
with clause (4) above. 
 As used herein, the term “Hosting Order Advances Provisions” shall mean the following on a
collective basis: (1) Hosting Order Advances are be available for borrowing as of the last day of each month only, and shall, in any event, only be available at the Bank’s discretion; (2) all Hosting Order Advances that are
made as of the last day of any month are required to be repaid in full on the first Business Day of the immediately following month; and (3) in order to effectuate the foregoing, Borrower shall, at the request of Bank, submit a Loan Payment
Form on the date of the making of any Hosting Order Advance such that such Advance shall be repaid in accordance with clause (2) above. 
 As used herein, the term “Allowed Hosting Orders” shall mean non-cancellable orders by customers of Borrower that are scheduled to be billed by Borrower within twelve months from the date of the proposed Advances relating
thereto and that are deemed acceptable, in all respects, to Bank in its discretion.” 
  

 -3- 

			
	Silicon Valley Bank	  	Amendment to Loan Agreement

  

 2. Modification to Collateral Monitoring Fee. That portion of Section 3 of
Schedule 1 to the Loan Agreement that now reads as follows: 
 “Collateral Monitoring Fee: 
 $750 per month, payable in arrears (prorated for any partial month at the beginning and at termination of this Agreement), provided that such fee shall
not be payable at such times that the AQR Target has been satisfied and remains satisfied with the understanding that any changes in the payment of such fee shall coincide with the effectiveness of any changes to the applicable interest rate from
the Regular Rate to the Reduced Rate and vice versa.” 
 IS HEREBY AMENDED TO READ AS FOLLOWS: 
 “Collateral Monitoring Fee: 
 $1,500 per
month, payable in arrears (prorated for any partial month at the beginning and at termination of this Agreement).” 
 3. Limitation
of Amendments. 
 A. The amendments set forth herein are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 B. This Amendment shall be construed in connection with,
and as part of, the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and
effect. 
 4. Fee. Borrower agrees to pay Bank an amendment fee in the amount of $7,500 concurrently herewith, which shall be in
addition to all interest and all other fees and shall be non-refundable, and specifically, and without limitation of the foregoing, shall be in addition to all annual renewal fees otherwise payable by Borrower. Bank is authorized to charge said fee
to any of Borrower’s deposit accounts. 
 5. Representations and Warranties. To induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank as. follows: 
 A. Immediately after giving effect to this Amendment
(a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which
case they are true and correct as of such date), and (b) no Default or Event of Default has occurred and is continuing; 
 B. Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
  

 -4- 

			
	Silicon Valley Bank	  	Amendment to Loan Agreement

  

 C. The organizational documents of Borrower delivered to Bank in connection with the
original execution of the Loan Agreement remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 D. The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, have been duly authorized; 
 E. The execution and delivery by Borrower of this Amendment and
the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person
binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
 F. The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof,
binding on either Borrower, except as already has been obtained or made; and 
 G. This Amendment has been duly executed and
delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited under law by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 6. Other General
Provisions. This Amendment, the Loan Agreement, any prior written amendments thereto signed by Bank and the Borrower, and the other written documents and agreements between Bank and the Borrower set forth in full all of the representations and
agreements of the parties with respect to the subject matter hereof and supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof. 
 7. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to
constitute one and the same instrument. 
 8. Effectiveness. This Amendment shall be deemed effective upon (a) the due
execution and delivery to Bank of this Amendment by each party hereto; and (b) Borrower’s payment of the fee set forth herein plus all expenses of Bank incurred in connection herewith and as otherwise payable under the Loan Agreement.

 [Signature Page Follows] 
  

 -5- 

									
	Borrower:	 		 	Bank:
			
	EGAIN COMMUNICATIONS CORPORATION	 		 	SILICON VALLEY BANK
					
	By	 	/s/ Ashutosh Roy	 		 	By	 	/s/ Jean Lee
		 	President	 		 	Title	 	Relationship Manager
					
	By	 	/s/ Eric Smit	 		 		 	
		 	Ass’t Secretary	 		 		 	

 [Signature Page to Amendment to Loan and Security Agreement 
 dated December 28, 2007]Employment Letter

 Exhibit 10.37 
 

 
  

			
	June 21, 2007	  	REVISED
		
	Katherine McDermott	  	
	15378 Avenue of Science, Suite 100	  	
	San Diego, CA 92128	  	

 Dear Kathy, 
 American
Technology Corporation (“Company”) is very pleased to confirm our offer of employment. This offer is contingent upon satisfactory results of all reference, education, and background checks and is based on the following terms and
conditions: 
  

			
	Title:	  	Controller/Chief Accounting Officer
		
	Start Date:	  	June 25, 2007
		
	Salary:	  	A semi-monthly salary in the amount of $ 5,833.33 ($ 140,000 annually)
		
	Bonus Plan:	  	You will be eligible to participate in American Technology FY07 Bonus Incentive Plan. Under the Plan if the Company achieves budgeted NIBT the payout is 50% of your base salary. If the
Company achieves targeted NLBT the payout is 100% of your base salary. If we achieve either of these results, the payout will be prorated over the remainder of the fiscal year.
		
	Stock Options:	  	Management will recommend to the Compensation Committee at its first quarterly meeting following your start date, that you be granted stock options to purchase 50,000 shares of common stock.
The Compensation Committee has the discretion to approve or deny the grant. The recommended options will have an exercise price equal to the fair market value of our common stock (determined in accordance with our 2005 Stock Option Plan) on the date
the Compensation Committee approves the grant, and will be exercisable for five (5) years after grant, subject to earlier termination as set forth in the 2005 Stock Option Plan. The recommended options will vest over four (4) years with 25% vesting
on the first anniversary of grant, and then in equal quarterly installments over the following three years of continuous service with the Company.

			
		
	Health Benefits:	  	The Company offers a comprehensive benefits plan that includes medical, dental, vision, long-term disability and life insurances. The company pays 100% of premiums for you and your dependents.
Benefits begin the first day of the month following your hire date.
		
	 Paid Time Off
 & Holidays:
	  	You will receive 20 days of accrued Paid Time Off (PTO) annually, in use for vacation or for personal time off. PTO hours are accrued per pay period.
		
		  	The Company offers 9-paid holidays each calendar year. You must be on active status the day before and the day after the holiday to receive holiday pay.
		
	Retirement:	  	A 401k package is available with multiple investment options and the company matches 25% of the employee’s deferral up to 6% of your annual earnings. (Note: Some IRS limitations may apply.)

		
	Arbitration:	  	As a contingency of this offer, you will be required to sign the attached Mutual Agreement to Arbitrate (“Arbitration Agreement”).

 Due to the enactment of the Immigration Reform and Control Act of 1986, this offer is contingent on your ability
to produce acceptable documentation verifying your eligibility to work in the United States. You will be required to present the necessary documents on the day you begin work at American Technology Corp. 
 Additionally, as a condition of this offer and of your employment with American Technology Corporation, you will be required to preserve the Company’s proprietary
and confidential information and you must comply with the Company’s policies and procedures. Accordingly, you will be required to execute the Company’s Agreement on your first date of employment. 
 If accepted, your employment will be at-will with no specified period or term of employment. This means that either you or the Company may terminate employment at
anytime, with or without reason. The Company may also transfer, promote, demote or otherwise alter your position and/or status at any time and for any reason. An employment agreement for a specified period of time, which contradicts this at-will
agreement, may only be entered into in writing, signed by the President of the Corporation. 
 Kathy, we sincerely hope that you decide to join American
Technology Corp. Please acknowledge your acceptance of our offer by signing below and returning a copy of this letter to us by Thursday, June 21, 2007. 

 American Technology Corporation (Nasdaq: ATCO) with headquarters in San Diego, California, is Shaping the Future of Sound
through innovative concepts in directional acoustic technology and next generation intelligibility for commercial and government markets. Our award-winning sound reproduction technologies create unique solutions for our customers through our
branded, OEM and licensed products. 
 We have an immediate opening for a Chief Accounting Officer to join our team. 
 The ideal candidate will work with senior management to develop short-term and long-term strategic plans to meet the growth and profitability objectives of the Company.
They will direct the organization’s financial planning and accounting practices. They will be responsible to ensure that all aspects of the business, processes, operations, capital assets and financial resources are oriented towards maximizing
profitability, and growth. The successful candidate will have a “rollup their sleeves attitude” and be a team player. 
 Responsibilities: 

  

	 	•	 	 Manage the entire primary accounting functions including: accounts payable, accounts receivable, revenue recognition, payroll, general ledger and cash management.

  

	 	•	 	 Oversee the preparation of timely and accurate financial statements, including the preparation of monthly journal entries. 

  

	 	•	 	 Assist in the preparation of Form IOQ and 10K reports to the SEC. 

  

	 	•	 	 Lead the conformance with Sarbanes-Oxley, Section 404 activity. 

  

	 	•	 	 Review and prepare account analyses and comparison of results versus plan. 

  

	 	•	 	 Participate in the annual and interim budgeting process. 

  

	 	•	 	 Act as the primary interface to the company’s outside auditors. 

  

	 	•	 	 Document all accounting controls, policies and procedures 

  

	 	•	 	 Enhance and improve current systems and procedures. 

  

	 	•	 	 Other special projects as assigned by the CFO. 

 Background and Skills: 
  

	 	•	 	 BS degree in Accounting or Finance, CPA required, MBA preferred 

  

	 	•	 	 5 - 7 years’ public accounting experience 

  

	 	•	 	 2 years’ experience in private industry preferably in a manufacturing environment 

  

	 	•	 	 Strong knowledge of GAAP, FASB and other relevant accounting pronouncements 

  

	 	•	 	 SEC reporting experience required. 

  

	 	•	 	 Experience with a mid-range accounting software system. 

  

	 	•	 	 Excellent Excel skills. 

  

	 	•	 	 Knowledge of Sarbanes-Oxley. 

 ATC is committed to
workforce diversity, and we are proud to be an equal opportunity employer. 

 If there are any questions, please do not hesitate to call me. 
 Best Regards, 
  

	
	

	Thomas R. Brown
	President/CEO

 I understand and agree to the terms and conditions set forth in this letter. I further understand that any
misrepresentations that I have made on my employment application or resume can result in termination. I acknowledge that no statement contradicting this letter, oral or written, has been made to me, that I am not relying on any statement or term not
contained in this letter, and that no agreements exist which are contrary to the terms and conditions set forth in this letter. 
  

			
	Accepted by: 

	  	Date: 6/22/07

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