EGAIN COMMUNICATIONS CORP FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Financial Statements and Exhibits Edgar Online "Glimpses"
Friday, July 01 2011 6:09 AM, EST
Item 1.01. Entry into a Material Definitive Agreement
On June 27, 2011 , eGain Communications Corporation (the "Company") entered into a Loan and Security Agreement with Comerica Bank, N.A. (the "Bank") dated as of June 27, 2011 (the "Loan and Security Agreement"). Pursuant to the Loan and Security Agreement and subject to the terms and conditions contained therein, the Company has borrowed $5,000,000 to re-pay certain of the Company's promissory notes issued to parties related to the Company and may borrow up to $1,500,000 under a revolving line of credit (together, the "Loan"). The Company's obligations under the Loan and Security Agreement are secured by a lien on the Company's assets including its intellectual property. The Company must comply with certain covenants under the Loan, including financial covenants that require us to maintain a minimum cash balance and a ratio of liquidity. If the Company fails to comply with its covenants under the Loan, the Bank can declare any outstanding amounts immediately due and payable.
As a condition to the Bank providing the Loan, Ashutosh Roy has subordinated his security interests in his outstanding secured promissory note issued by the Company to those of the Bank pursuant to a Subordination Agreement dated as of June 27, 2011 (the "Subordination Agreement").
The foregoing summaries of the Loan and Security Agreement and the Subordination Agreement do not purport to be complete and are qualified in their entirety by reference to such documents attached as exhibits hereto.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
10.1 Loan and Security Agreement between eGain Communications Corporation and Comerica Bank dated as of June 27, 2011 . 10.2 Subordination Agreement between Ashutosh Roy and Comerica Bank dated as of June 27, 2011 .
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10/5/07 -- there are no coincidences here ...
oh and like many other longs .. not selling at this level --
