Document:

Exhibit 10.3

 

Artemis
International Solutions Corporation

4041
MacArthur Blvd., Suite 401

Newport
Beach, California  92660

 

March 10, 2006

 

Proha Plc

Maapallonkuja 1 A

FIN-02210 Espoo

Finland

Attention: Pekka Pere

 

Re:  Proha Agreement

 

Dear Mr. Pere:

 

In connection with the
Agreement and Plan of Merger dated as of March 10, 2006 by and between Artemis
International Solutions Corporation, a Delaware corporation (“Artemis”), and
Trilogy, Inc., a Delaware corporation (“Parent”)
and RCN Acquisition, Inc., a Delaware corporation and wholly-owned subsidiary
of Parent (“Newco”), pursuant to which Artemis will be acquired by Parent/Newco (the “Merger”),
Artemis and Proha Plc. (“Proha”), on behalf of themselves and their respective
subsidiaries and affiliates, hereby agree pursuant to this letter (“Proha
Agreement”) as follows:

 

Indebtedness:  Artemis, its subsidiaries and
affiliates, including Artemis Finland Corporation, a Finland corporation
(collectively, the “Artemis Group”), shall make the following payment to Proha
upon the closing of the Merger, in respect of any indebtedness between the
Artemis Group and Proha (along with its subsidiaries and affiliates, including
Proha Oyj, a Finland corporation, collectively referred to as the “Proha Group”):
 $375,000 (the “Payoff Amount”).  Artemis shall make such required payment by
wire transfer of immediately available funds to the accounts specified by Proha
not later than five (5) business days upon the close of the Merger as
referenced above.  Proha agrees, on
behalf of itself and the Proha Group, that the payment of the Payoff Amount
pursuant to this Proha Agreement will constitute full payment of all amounts
then due and owing from the Artemis Group to the Proha Group, including in each
case all interest, penalties, premiums and other fees and expenses.

 

Transition Arrangements:  Reference is hereby made to (i) that
certain Lease Agreement dated October 12, 2005, by and between Proha Oyj, a
Finland corporation (“Proha Oyj”), and Artemis Finland Corporation, a Finland
corporation (“Artemis Finland”) (as amended, modified and/or supplemented from
time to time, the “Lease Agreement”), and (ii) that certain Administrative
Services Agreement dated as of May 30, 2002, by and between Proha Oyj and
Artemis Finland (as amended, modified or supplemented from time to time, the “Administrative
Services Agreement”).  Between the date
hereof and the closing of the Merger, the parties hereto agree to negotiate in
good faith and to execute extensions of each of the Lease Agreement and the
Administrative Services Agreement, such extensions to be on terms consistent
with the terms currently in effect, for such period as shall be reasonably
requested by Artemis.  In addition, Proha
and Artemis agree to enter into, and to cause any other member of the Proha
Group and the Artemis Group, as applicable, to enter into, mutually acceptable
agreements terminating any (a) joint venture arrangements between any member of
the Proha Group and any member of the

 

 

Artemis
Group which is no longer actively engaged in any substantive business, and (b)
agreements between any member of the Proha Group and any member of the Artemis
Group under which the parties are no longer actively engaged in any substantive
business.

 

This Proha
Agreement shall not be amended or waived except by an instrument in writing
signed by Artemis and Proha.  This Proha
Agreement may be executed in any number of counterparts, each of which shall be
an original and all of which, when taken together, shall constitute one
agreement.  Delivery of an executed
signature page of this Proha Agreement by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof or thereof, as
the case may be.  This Proha Agreement
shall be governed by, and construed in accordance with the laws of the state of
New York. This Proha Agreement sets forth the entire agreement between the
parties hereto as to the matters set forth herein and supersede all prior
communications, written or oral, with respect to the matters herein.

 

 

	
   

  	
  ARTEMIS INTERNATIONAL SOLUTIONS

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S.
  Stefanovich

  	
   

  
	
   

  	
   

  	
  Name: Robert S.
  Stefanovich

  
	
   

  	
   

  	
  Title: EVP/CFO

  
	
   

  	
   

  	
   

  
	
  Agreed and accepted as of the date first written above.

  
	
   

  
	
   

  
	
  PROHA
  PLC

  
	
   

  
	
   

  
	
  By:

  	
  /S/ Pekka Pere

  	
   

  
	
   

  	
  Name: Pekka Pere

  
	
   

  	
  Title: CEOExhibit 10.4

 

 

February 6, 2006

 

LAURUS MASTER FUND, LTD.

c/o Ogier Corporate Services
Ltd.

P.O. Box 1234 G.T.

Queensgate House

South Church Street

Grand Cayman, Cayman Islands

Attention: Mr. Eugene Grin

 

Re: Laurus Master Fund Credit
Facility

 

Dear Mr. Grin:

 

Reference is hereby made
to (i) that certain Security Agreement dated August 14, 2003, by and
between Laurus Master Fund, Ltd. (“Laurus”) and Artemis International Solutions
Corporation, a Delaware corporation (the “Company”) and Artemis International
Solutions Ltd., a United Kingdom corporation (“AISL”) and wholly owned
subsidiary of the Company (as amended, modified and/or supplemented from time
to time, the “Security Agreement”), (ii) the Secured Convertible Minimum
Borrowing Note, dated as of August 14, 2003 and issued by the Company to
Laurus pursuant to the terms of the Security Agreement (as amended, modified
and/or supplemented from time to time, the “Minimum Borrowing Note”), (iii) the
Waiver Letter and Amendment dated as of March 31, 2005 (the “Initial Waiver
Letter”) and (iv) the subsequent waiver letters dated December 29, 2005 and
January 16, 2006. (together with the Minimum Borrowing Note, the Security
Agreement, the Initial Waiver Letter and any ancillary agreements executed in
connection therewith, the “Laurus Facility”)

 

In connection with an Agreement
and Plan of Merger which the Company currently intends to enter into with
Hunter Mergersub, Inc. (the “Merger Agreement”), the Company intends to pay at
the earlier of the Effective Time (as defined in the Merger Agreement) of the
merger, or April 30, 2006 (with said earlier date hereinafter being referred to
as the “Payout Date”), the following amounts arising from all obligations owed
under the Laurus Facility: an amount equal to all principal outstanding under
the Initial Waiver Letter – $3,000,000, plus interest accrued; an amount equal
to all principal outstanding under the Minimum Borrowing Note – $865,236.54,
plus interest accrued; plus an additional $110,000 in exchange for the cancellation
of Warrants as referred to below 
(collectively, the “Payments”). 
The parties hereto agree to execute a customary payoff letter releasing
all guarantees and liens under the Laurus Facility at the Payout Date and agree
that notwithstanding anything to the contrary contained in the Laurus Faclilty,
the Payments constitute payment in full of all obligations now owed and
hereafter arising under the Laurus Facility by the Company and its
subsidiaries, including AISL, as of the Payout Date, whether in respect of
prinicipal, interest, or otherwise, and that all Warrants to purchase any
securities of the Company issued in connection with the Laurus Facility shall
be cancelled as of immediately prior to the Payout Date.  In connection with the customary payoff
letter, Laurus will execute and deliver to the Company all documents reasonably
requested by the Company to

 

Artemis International Solutions Corporation 4041 MacArthur Boulevard,
Suite 401, Newport Beach, CA 92660

www.aisc.com

 

 

affect the release of all liens
and guarantees and return to the Company all collateral held by Laurus without
requiring the payment of any additional fees, expenses or consideration. Laurus
recognizes, acknowledges and agrees that the current waiver in effect
pertaining to the $3 million Over-Advance shall be deemed extended through the
Payout Date.  In the event that the
Company does not enter into the Merger Agreement, this letter shall be of no
further force and effect.

 

This letter
shall not be amended or waived except by an instrument in writing signed by the
Company and Laurus.  This letter may be
executed in any number of counterparts, each of which shall be an original and
all of which, when taken together, shall constitute one agreement.  Delivery of an executed signature page of
this letter by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof or thereof, as the case may be.  This letter shall be governed by, and
construed in accordance with the laws of the state of New York. This letter
sets forth the entire agreement between the parties hereto as to the matters
set forth herein and supersede all prior communications, written or oral, with
respect to the matters herein.

 

 

	
   

  	
  ARTEMIS INTERNATIONAL

  SOLUTIONS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Name:
  Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Title:
  EVP/CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARTEMIS INTERNATIONAL

  SOLUTIONS LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Name:
  Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Title:
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and accepted as
  of the date first written above.

  
	
   

  	
   

  
	
   

  	
   

  
	
  LAURUS MASTER FUND, LTD.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Eugene Grin

  	
   

  	
   

  
	
   

  	
  Name:
  Eugene Grin

  	
   

  
	
   

  	
  Title:
  Director

  	
   

  
						

 

 

 

March 9, 2006

 

LAURUS MASTER FUND, LTD.

c/o Ogier Corporate Services Ltd.

P.O. Box 1234 G.T.

Queensgate House

South Church Street

Grand Cayman, Cayman Islands

Attention: Mr. Eugene Grin

 

AMENDMENT TO LETTER AGREEMENT OF FEBRUARY 6, 2006

RE :  LAURUS MASTER FUND CREDIT
FACILITY

 

This Amendment modifies and
amends that certain letter agreement between Laurus Master Fund, Ltd. (“Laurus”)
and Artemis International Solutions Corporation, a Delaware Corporation (the
“Company”) and Artemis International Solutions Ltd., a United Kingdom
corporation (“AISL”), dated February 6, 2006, with a reference to, “Laurus
Master Fund Credit Facility” (“Letter Agreement”).

 

The parties hereby agree to
delete the second paragraph in the Letter Agreement, and replace it with the
following:

 

In connection with an
Agreement and Plan of Merger which the Company currently intends to enter into
with Trilogy, Inc., a Delaware corporation (“Parent”
) and RCN Acquisition, Inc., a Delaware corporation and wholly-owned subsidiary
of Parent (the “Merger Agreement”), the
Company intends to pay at the earlier of the Effective Time (as defined in the
Merger Agreement) of the merger, or June 16, 2006 (with said earlier date
hereinafter being referred to as the “Payout Date”), the following amounts
arising from all obligations owed under the Laurus Facility: an amount equal to
all principal outstanding under the Initial Waiver Letter – $3,000,000, plus
interest accrued; an amount equal to all principal outstanding under the
Minimum Borrowing Note – $865,236.54, plus interest accrued; plus an additional
$110,000 in exchange for the cancellation of Warrants as referred to below  (collectively, the “Payments”).  The parties hereto agree to execute a
customary payoff letter releasing all guarantees and liens under the Laurus
Facility at the Payout Date and agree that notwithstanding anything to the
contrary contained in the Laurus Facility, the Payments constitute payment in
full of all obligations now owed and hereafter arising under the Laurus
Facility by the Company and its subsidiaries, including AISL, as of the Payout
Date, whether in respect of principal, interest, or otherwise, and that all
Warrants to purchase any securities of the Company issued in connection with
the Laurus Facility shall be cancelled as of immediately prior to the Payout
Date.  In connection with the customary
payoff letter, Laurus will execute and deliver to the Company all documents
reasonably

 

Artemis International Solutions Corporation 4041 MacArthur Boulevard,
Suite 401, Newport Beach, CA 92660

www.aisc.com

 

 

requested by the Company
to affect the release of all liens and guarantees and return to the Company all
collateral held by Laurus without requiring the payment of any additional fees,
expenses or consideration. Laurus recognizes, acknowledges and agrees that the
current waiver in effect pertaining to the $3 million Over-Advance shall be
deemed extended through the Payout Date. 
In the event that the Company does not enter into the Merger Agreement,
this letter shall be of no further force and effect.

 

	
   

  	
  ARTEMIS INTERNATIONAL

  SOLUTIONS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Name:
  Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Title:
  EVP/CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARTEMIS INTERNATIONAL

  SOLUTIONS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Name:
  Robert S. Stefanovich

  	
   

  
	
   

  	
   

  	
  Title:
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and accepted as
  of the date first written above.

  
	
   

  	
   

  
	
   

  	
   

  
	
  LAURUS MASTER FUND, LTD.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David Grin

  	
   

  	
   

  
	
   

  	
  Name:
  David Grin

  	
   

  
	
   

  	
  Title:
  Director

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