On December 28, 2012, eGain Corporation entered into a third amendment to Loan and Security Agreement with Comerica Bank, N.A., which amended the second loan and security agreement entered into by the company and the Bank on June 28, 2012. Subject to and upon the terms and conditions of the loan amendment, the Bank agreed to make a term loan to the company in one disbursement in the amount of $3,000,000, which the company was obligated to use to pay down indebtedness owing to Ashutosh Roy, a director and the company's Chief Executive Officer pursuant to a restated subordinated secured promissory note with Mr. Roy. The loan amendment provides that the maturity date of the term loan will June 28, 2016; the company shall repay the term loan in 36 equal monthly installments of principal in the amount of $83,333.33 each, plus all accrued interest, beginning on July 1, 2013, and continuing on the same day of each month thereafter through the maturity date, at which time remaining amounts due shall be immediately due and payable; the proceeds of the term loan must be used to pay-down the Note; the interest on the term loan is the prime interest rate plus 1% and there are no prepayment penalties or warrants associated with the term loan.